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CONTRACT 3505A AmendmentRecording Requested By And When Recorded Mail To: California Infrastructure and Economic Development Bank Attn: Credit Support Unit P.O. Box 2830 Sacramento, California 95812 -2830 3505A. (Space above for Recorder's use) This document is recorded for the benefit of the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the recording is fee - exempt under Section 27383 of the California Government Code. FIRST AMENDMENT TO THE FACILITY LEASE by and between the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the CITY OF EL SEGUNDO relating to $10,000,000 Agreement No. CIEDB B04 -062 Dated as of January 1, 2007 3505A THIS FIRST AMENDMENT TO THE FACILITY LEASE (the "First Amendment ") is made and entered into as of January 1, 2007, by and between the City of El Segundo, a general law city and municipal corporation duly organized and existing under the laws of the State of California, as Lessee (the "Lessee "), and the California Infrastructure and Economic Development Bank, duly organized and validly existing pursuant to the Bergeson -Peace Infrastructure and Economic Development Bank Act, constituting Division 1 of Title 6.7 of the California Government Code (commencing at section 63000 thereof) as now in effect and as it may from time to time hereafter be amended (the "Act ") as Lessor (the "Lessor "). WITNESSETH WHEREAS, the Lessee and the Lessor entered into that certain FACILITY LEASE dated as of September 1, 2005 (the "Facility Lease "); WHEREAS, the Facility Lease was recorded in Official Records, County of Los Angeles; WHEREAS, the Lessee and the Lessor desire to amend certain terms of the Facility Lease; WHEREAS, all acts and proceedings required by law necessary to make this First Amendment, when executed by the Lessee and the Lessor, the valid, legal and binding obligation of the Lessee and the Lessor, and to constitute this First Amendment a legal, valid, and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution of this First Amendment has been in all respects duly authorized; and WHEREAS, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Facility Lease; NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto do hereby agree as follows: Section 1. Section 2.08(d) is hereby deleted and replaced with the following: (d) Lessee must both: (i) begin Project construction no later than twelve months after June 21, 2005, and (ii) submit invoices to the Lessor for the entire Project Amount no later than February 17, 2008. If the Lessee fails to meet the February 17, 2008 requirement, the Lessor shall, if required by federal law, hold any or all undisbursed funds and apply such funds to the optional redemption of Secured Bonds in accordance with the Indenture (in which event the moneys on deposit in the Project Account shall be reduced by the principal amount of Secured Bonds so redeemed). 35O5A.. Section 2. Section 12.02(b) of the Facility Lease is hereby deleted and replaced with the following: (b) The Lessee will prepare and file with the Lessor annually as soon as practicable, but in any event not later than two hundred ten (2 10) days after the close of each Fiscal Year, so long as this Facility Lease has not been discharged by the Lessor, an audited financial statement of the Lessee for the preceding Fiscal Year, prepared by an Independent Accountant; provided, however, that in the event that such audited financial statement is not available by the above - referenced filing date, an unaudited financial statement may be substituted therefore. In the event an unaudited financial statement is submitted, the Lessee shall file the audited financial statement with the Lessor as soon as it becomes available. The Lessee will furnish to the Lessor such reasonable number of copies of such audited financial statements as may be required by the Lessor for distribution (at the expense of the Lessee). Section 3. Exhibit 14.01 of the Facility Lease is hereby deleted and replaced with the following: SECTION 14.01. Notices. All written notices to be given hereunder shall be given by first class mail to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely: If to the Lessor: California Infrastructure and Economic Development Bank Attn: Credit Support Manager, CIEDB B04 -062 P.O. Box 2830 Sacramento, CA 95812 -2830 For overnight mail or personal delivery only, the following address should be used: California Infrastructure and Economic Development Bank Attn: Credit Support Manager, CIEDB B04 -062 10011 Street, 19a` Floor Sacramento, California 95814 Or to such other address as may be designated in writing by the Lessor. 2 3 5056, . ti If to the Lessee: City of El Segundo Attn: City Manager 350 Main Street El Segundo, CA 90245 -3813 Section 4. All other terms and conditions of the Facility Lease shall remain in full force and effect. [The balance of this page is intentionally left blank.] 35054, IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be signed by the respective officers, all as of the day and year first above written. ATTEST Roma Cristia -Plant Secretary ATTEST By Cd CindyWlortesen City Clerk CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK, as Lessor Stanton C. Hazelroth Executive Director CITY OF EL SEG O, as Lessee By Jeff Stewart G City Manager 4 i i S TO FORM: ITY ATTORNEY 3505A. STATE OF CALIFORNIA ) ss COUNTY OF SACRAMENTO ) On , 2006, before me, Tom Martin, a Notary Public in and for the State of California, personally appeared STANTON C. HAZELROTH, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity on behalf of which the person acted, executed the instrument. Witness my hand and official seal Signature of Notary Public 5 January 29, 2007 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 On January 29, 2007, before Cathy Domann, Deputy City Clerk, personally appeared Jeff Stewart, City Manager of the City of El Segundo, personally known to me to be the person whose name is subscribed to on the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which the persons acted, executed the instrument. Witness my hand and Official Seal eA%412��� Cathy Do rut, Deputy City Clerk C:forms \certsig