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5ection2.4 <br />Prevailing Wages............................................................................................14 <br />ARTICLEIII RENT............................................................................................................................14 <br />Section 3.1 <br />Payment of Rent.............................................................................................14 <br />Section 3.2 <br />Manner of Payment........................................................................................17 <br />Section 3.3 <br />Records and Right to Audit ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,17 <br />Section 3.4 <br />Adjustment to Percentage Rent During Extension Terms ............................18 <br />Section3.5 <br />Rent.................................................................................................................21 <br />Section3.6 <br />No Abatement................................................................................................21 <br />Section 3.7 <br />Security Reserves...........................................................................................21 <br />Section 3.8 <br />Excess Cash Flow Reserve Fund...................................................................23 <br />ARTICLEIV IMPOSITIONS <br />.............................................................................................................24 <br />Section 4.1 <br />Payment of Impositions..................................................................................24 <br />ARTICLE V OCCUPANCY AND USE............................................................................................27 <br />Section 5.1 <br />Tenant's Use of the Premises.........................................................................27 <br />Section 5.2 <br />Landlord's Use of Nonexclusive Areas ........................................................28 <br />Section 5.3 <br />Parking ..................................................... .................31 <br />...................................... <br />Section 5.4 <br />Tenant's Use of Public Areas ..........:.............................................................32 <br />ARTICLE VI OPERATION OF FACILITY .......................................... .................................... <br />33 <br />Section 6.1 <br />Standard of Operation............................................ <br />33 <br />Section6.2 <br />EnvironmentalObligations ............................................................................34 <br />Section 6.3 <br />Traffic and Land Use Miti ation...................................................................34 <br />Section 6.4 <br />Fair Wages and Benefits ............................................. ....... I ........ I .... <br />,............ 35 <br />ARTICLE VII REPAIR AND MAINTENANCE..............................................................................36 <br />Section 7.1 <br />Repairs and Maintenance...............................................................................36 <br />Section 7.2 <br />Furnishings Reserve Account,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,38 <br />Section 7.3 <br />Capital Reserve Account ................................... ..............................39 <br />............... <br />Section 7.4 <br />Landlord's Responsibili..............................................................................40 <br />ARTICLE VIII INDEMNIFICATION...............................................................................................40 <br />Section 8.1 <br />Indemnification by Tenant ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,40 <br />Section 8.2 <br />Indemnificationby Landlord <br />41 <br />ARTICLE IX UTILITIES.................................................................................................................... <br />41 <br />Section 9.1 <br />Utilities ............................................. <br />41 <br />ARTICLE X ALTERATIONS <br />.............................................................................. .............................. <br />42 <br />Section 10.1 <br />Alterations and Additions..............................................................................42 <br />ARTICLE XI DESTRUCTION AND RESTORATION ......... ....................................................43 <br />Section 11.1 <br />Insured Casualty........................................................ <br />Section 11.2 <br />Tenant Repair of Uninsured CasualtN............................................................44 <br />Section11.3 <br />Termination upon Uninsured Casualty .................. .................. <br />..............46 <br />Section 11.4 <br />Damage Near End of Term............................................................................47 <br />Section 11.5 <br />Insurance Proceeds on Termination...............................................................48 <br />Section 11.6 <br />No Abatement of Rent ..................................................................... <br />..............48 <br />Section 11.7 <br />Damage to or Destruction of Tenant's Property............................................48 <br />LEASE BETWEEN CITY OF SAN LEANDRO <br />AND SAN FRANCISCO BAY CONFERENCE RESORT <br />Page ii <br />002574.0001\409817.4 <br />