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Section 2.4 <br />Prevailing Wages .......................... <br />12 <br />ARTICLE III RENT ......................................... <br />12 <br />Section 3.1 <br />Payment of Rent .......................... <br />12 <br />Section 3.2 <br />Manner of Payment ........................ <br />16 <br />Section 3.3 <br />Records and Right to Audit .................... <br />17 <br />Section 3.4 <br />Adjustment to Percentage Rent During Extension Terms .. <br />17 <br />Section 3.5 <br />Rent .................................. <br />21 <br />Section 3.6 <br />No Abatement ............................ <br />21 <br />Section 3.7 <br />Security Reserves .......................... <br />21 <br />ARTICLE IV IMPOSITIONS ................................... <br />22 <br />Section 4.1 <br />Payment of Impositions ...................... <br />22 <br />ARTICLE V OCCUPANCY <br />AND USE ............................. <br />24 <br />Section 5.1 <br />Tenant's Use of the Premises ................... <br />24 <br />Section 5.2 <br />Landlord's Use of Nonexclusive Areas ............. <br />25 <br />Section 5.2.1 <br />Frequency of Use .......................... <br />25 <br />Section 5.2.2 <br />Schedule of Use .......................... <br />26 <br />Section 5.2.3 <br />Community Use ........................... <br />26 <br />Section 5.2.4. <br />Public Access ............................ <br />26 <br />Section 5.3 <br />Competition by Tenant ...................... <br />27 <br />Section 5.4 <br />Parking ................................ <br />28 <br />ARTICLE VI OPERATION <br />OF PREMISES ......................... <br />29 <br />Section 6.1 <br />Standard of Operation ....................... <br />29 <br />Section 6.2 <br />Environmental Obligations .................... <br />30 <br />Section 6.3 <br />Traffic and Land Use Mitigation ................. <br />30 <br />ARTICLE VII REPAIR AND <br />MAINTENANCE ....................... <br />31 <br />Section 7.1 <br />Repairs and Maintenance .. .......... ......... <br />31 <br />Section 7.2 <br />Furnishings Reserve Account ................... <br />32 <br />Section 7.3 <br />Capital Reserve Account ..................... <br />33 <br />Section 7.4 <br />Landlord's Responsibility ..................... <br />34 <br />ARTICLE VIII INDEMNIFICATION .............................. <br />34 <br />Section 8.1 <br />Indemnification by Tenant .................... <br />34 <br />Section 8.2 <br />Indemnification by Landlord ................... <br />35 <br />ARTICLE IX UTILITIES <br />..... ...... ....... ......... .......... <br />35 <br />Section 9.1 <br />Utilities . .......... .............. ....... <br />35 <br />LEASE BETWEEN CITY OF SAN LEANDRO <br />AND SAN FRANCISCO BAY CONFERENCE RESORT PAGE H <br />2574001\313983.8 <br />