Agmt 2002 American Golf Corp - Laserfiche WebLink

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AMENDMENT TO LEASE AGREEMENT SAN LEANDRO GOLF FACILITY The Lease Agreement ("Lease") entered into the 15th day of November 1997 by and between The City of San Leandro, a municipal corporation ("Lessor" or "City"), and American Golf Corporation, a California corporation ("Lessee" or "AGC"), is hereby amended as follows: 1. Lessee Work. Lessee shall perform the following work at the Tony Lema Course at the Golf Facility (collectively, the "Lessee Work"): (i) strip and remove all of the existing sod from the fairways of the Tony Lema Course at the Golf Facility (not to exceed 36 acres); (ii) prepare the soil on the fairways of the Tony Lema Course at the Golf Facility for the laying or planting of new sod; and (iii) replace the removed sod with Seashore Paspalum sod (not to exceed 36 acres). To the extent necessary to accomplish the Lessee Work, as determined by Lessee in its good-faith discretion, Lessee also shall have the right to add any necessary drainage along the cart paths and in the rough areas of the Tony Lema Course at the Golf Facility, to re- seed, "sprig" or sod any non-turf soil in the rough areas, and to re-seed the native areas of the Tony Lema Course at the Golf Facility. Lessee shall perform the Lessee Work in a good and workmanlike manner. 2. Completion Date for Lessee Work. Lessee shall endeavor to complete the Lessee Work on or before October 1, 2004, subject to extension pursuant to Section 9 below. 3. Percentage Rent Credits. In partial consideration of Lessee's performance of the Lessee Work, Lessor shall provide Lessee the following credits against Lessee's obligation to pay Percentage Rent (the "Rent Credits"): Date Amount of Rent Credit August 2002 $175,000.00 February 2003 $225,000.00 August 2003 $200,000.00 February 2004 $150,000.00 August 2004 $125,000.00 February 2005 $125,000.00 Lessee shall receive the Rent Credits as follows: Lessee shall submit to Lessor, no later than thirty (30) days before Lessee desires to apply a Rent Credit against Lessee's next obligation to pay Percentage Rent, invoices for that portion of the Lessee Work then-performed. Lessee shall then apply against Lessee's next obligation to pay Percentage Rent the lesser of: (i) the amount reflected on the invoices submitted to Lessor, (ii) the amount of the applicable Rent Credit (taking into account any Rent Credit carried over from a previous period, as explained below), or (iii) the amount of Percentage Rent otherwise payable by Lessee. Any Rent Credit not fully applied during the applicable period shall carry over to the next period. Any 7185000185-1283547.4