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Lessee deems appropriate. Without limiting the foregoing, (a) Lessee shall have the <br />right to implement all policies and procedures and to perform any act deemed <br />necessary or desirable for the operation and management of the Leased Premises; (b) <br />Lessee shall have the right to determine all green fees, cart fees, driving range fees and <br />all other charges associated with the operation of the Leased Premises; and (c) Lessee <br />shall have the right to determine all personnel requirements, recruitment schedules <br />and compensation levels and shall employ, train, promote, discharge and supervise all <br />personnel performing services in and about the Leased Premises. Lessee shall utilize <br />its local, regional and national marketing and sales resources for the benefit of the <br />Leased Premises, and shall designate the Leased Premises as available for tournament <br />play, transient play and local play in Lessee's promotional materials. In connection <br />with Lessee's operation and management of the Leased Premises, Lessee shall, on or <br />before January 31 of each Lease Year, submit to Lessor an annual sales and marketing <br />plan for the Leased Premises. The initial marketing plan shall at a minimum contain <br />the elements set forth in Section 6 of Lessee's Proposal to Lessor. Lessor shall have <br />the right to comment upon and make suggestions with respect to said plan; provided, <br />however, while Lessee shall consider all of Lessor's suggestions and comments, Lessee <br />shall not be obligated to implement the same. <br />Lessor's representative is the Golf Course Operations Manager who shall <br />administer this Lease and monitor Lessee's compliance with the terms hereof. Unless <br />otherwise notified by Lessor through its City Manager, Lessee shall deal exclusively <br />by and through the Golf Course Operations Manager and shall have the right to rely <br />upon decisions rendered by the Golf Course Operations Manager who shall be <br />deemed to be the Lessor's authorized representative. Notwithstanding the provisions <br />of Section 3.3, Lessee shall consider in good faith the requests and recommendations <br />of the Golf Course Operations Manager to increase play and revenue or to enhance <br />maintenance and operation of the Golf Facility. <br />3.3 Limitations. Lessee's rights under Section 3.2 are subject to each of the <br />following limitations: <br />3.3 (a) During "off-peak" (as defined below) times, Lessee will charge <br />green fees to residents of the City in accordance with a rate schedule approved by <br />Lessor which approval will not be unreasonably withheld or delayed. Lessor shall, in <br />setting resident "off-peak" rates, consider (i) the revenue impacts to the operation of <br />the Golf Facility; (ii) prevailing rates at similar public courses; and (iii) changes in the <br />Consumer Price Index or comparable indicator of cost of living changes. Lessee shall <br />institute and enforce a resident identification and monitoring program to insure that <br />resident rates are offered only to bona fide residents of the City. Lessee will issue <br />LEASE AGREEMENT BETWEEN <br />CITY OF SAN LEANDRO AND AMERICAN GOLF PAGE 4 <br />11/13/97 FINAL 1:\WPD\C5L\136~O1WGREE\GOLFCOUR\AGREEU,EASE.CLN <br />