Management Agreement American Golf Corp Monarch Bay

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DocuSign Envelope ID: 3C2D3BBB-9622-434A-9243-AF02B243E3A3 ARTICLE 3 - OPERATING RESPONSIBILITIES 3.1 Grant to Manager. Except as otherwise expressly provided in this Agreement, Owner grants to Manager the right to manage and operate the Facility pursuant to the terms of this Agreement, and Manager agrees that it will manage and operate the Facility in accordance with this Agreement, the approved Annual Plan, except as otherwise set forth in this Agreement. Manager shall perform its services in a timely and diligent manner. Manager, with the approval of Owner and in accordance with the terms of this Agreement, shall have the authority and responsibility to: (a) implement each approved Annual Plan; (b) determine, establish, and implement the policies, standards, and schedules for the operation and maintenance of the Facility and all matters affecting customer relations; (c) hire, train, and supervise the general manager, course superintendent, and all Facility employees; (d) supervise and direct all phases of advertising, sales, marketing, and business promotion for the Facility; and (e) establish payroll procedures and functions for the Facility. To the extent the foregoing duties are discussed, detailed, or included in the Annual Plan, Manager will carry out such duties consistent with the Annual Plan. Owner agrees it will reasonably cooperate with Manager to permit and assist Manager to carry out its duties under this Agreement provided Manager provides reasonable advance notice for such cooperation and assistance. 3.2 Annual Plans. 3.2.1 Preparation. Manager will submit to Owner no later than January 311t of each year thereafter an "Annual Plan" for the following fiscal year (commencing July 11t) consisting of (a) a budget that shall include for the ensuing year estimates for the projected detailed revenues of the Facility (detailed on a line item basis) and the projected detailed expenditures for (i) property operation and maintenance, (ii) capital improvements which constitute normal repairs, replacements, and alterations for the following operating year which the Annual Plan otherwise covers, (iii) furnishings, equipment and operating inventory, (iv) advertising, sales, and business promotion, (v) employee compensation and (vi) an operating/business plan forthe Facility setting forth a marketing and promotions plan, a schedule of proposed golf fees, an operating schedule (which shall include hours of operation and staffing levels), a maintenance plan, and to the extent applicable, membership sales plans, membership dues, and initiation fee schedules. Owner acknowledges that the Annual Plans, budgets, and operating/business plans contained therein are estimates and will not and do not constitute a guarantee of the actual revenues or expenses of operating the Facility. The parties understand that, as provided in Section 10, budgets for Major Capital Improvements will be treated separately and will not form part of the Annual Plans. The Annual Plan for the initial Operating Year (which in this case, shall commence on and conclude on June 30, 2021) is attached as Exhibit B to this Agreement. 3.2.2 Approvals. Each Annual Plan shall be subject to the prior written approval of Owner, and the new Annual Plan for a given Operating Year cannot go into effect without such Management Agreement Between June 1, 2020 City of San Leandro and American Golf Corporation Page 6 of 28