Reso 1997-146 to 150 - Laserfiche WebLink

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statement signed by Lessee or a person authorized by Lessee showing in reasonable detail the amount and types of Gross Revenue for the preceding Lease Year. If the Percentage Rent for such Lease Year exceeds the Percentage Rent relating to such Lease Year previously paid by Lessee, Lessee shall pay such deficiency to Lessor along_ with such statement. If the Percentage Rent for such Lease Year is less than the amount previously paid by Lessee, Lessor shall, at Lessor's option, either (a) remit to Lessee a check in an amount equal to such difference, or (b) grant Lessee a credit against the payment of Minimum Rent and/or Percentage Rent next coming due. 9. MAINTENANCE AND EXAMINATION OF RECORDS. 9.1 Lessee's Maintenance of Records. Lessee shall maintain, at its principal offices, its financial records pertaining to Gross Revenue from the operation of the Leased Premises for a period of two (2) years after the conclusion of any Lease Year. Lessee shall maintain internal controls on the receipt and recording of Gross Revenue and other operational, financial and accounting controls as are approved by Lessor (which approval will not be unreasonably withheld or delayed). Such control will include an electronic cash register with an auditable daily tape, daily reconciliation of cash deposit and sales, issuance of written dated receipts to each golfer, a daily activity report listing the number of golf rounds, total collections, and a monthly summary. Further, all financial records pertaining to Gross Revenue from the operation of the Leased Premises shall, upon at least three (3) business days' prior written request from Lessor to Lessee, be open and available to Lessor and Lessor's representative for an examination and audit at all reasonable times during business hours. Lessor shall be entitled at any time within two (2) years after the conclusion of a Lease Year to question the sufficiency of any rent payments or the accuracy of the report furnished by Lessee. 9.2 Lessor's Right to Audit. Lessor may audit Lessee's accounting procedures, internal controls, and financial systems insofar as they pertain to Gross Revenue. Any such audit will be undertaken at reasonable times and in accordance with generally accepted auditing standards. Lessee shall cooperate fully with any such audit. If any audit reveals any underpayment of Percentage Rent due Lessor, Lessee shall pay the same to Lessor within thirty (30) days after receipt of written notice from Lessor accompanied by Lessor's findings and determination. If Lessee fails to make such payment within thirty (30) days, Lessee shall pay interest thereon at the maximum legal rate accruing monthly from the date of Lessor's notice. LEASE AGREEMENT BETWEEN CITY OF SAN LEANDRO AND AMERICAN GOLF PAGE 13 11/13/97 FINAL J.\WPD\CSL\136\0I\AGREE\GOLFCOUR\AGREE\LEASE.CLN