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while Lessor will issue the required Entitlements (and will be the lead agency under <br />CEQA), it does not guarantee that the same will issue. Nevertheless, Lessor will <br />provide reasonable assistance to Lessor in connection with Lessor's effort to procure <br />the Entitlements and will designate a responsible individual to interface with Lessee <br />in connection with Lessee's Entitlement procurement efforts. <br />13.2 No Obligation to Exceed Budget. Lessor agrees that Lessee shall not be <br />required to spend more than the amount shown in the Budget in connection with the <br />Renovation. If at the time Lessee solicits bids for the Renovation, Lessee does not <br />receive an acceptable bid from a qualified contractor for a price that is equal to or less <br />than the Budget, Lessee shall so notify Lessor. Within thirty (30) days thereafter, <br />Lessee may attempt in good faith to reduce the scope of the Renovation project so as <br />to reduce the cost to the Budget amount provided, in doing so, the quality of the <br />overall Renovation shall not be sacrificed. If Lessee is unable to reduce the <br />Renovation cost to the Budget amount, Lessee shall present to Lessor the contract <br />price for the Renovation. Lessor may, within thirty (30) days thereafter elect to (a) <br />pay the amount in excess of the Budget, (b) require Lessee to pay the excess and <br />permit Lessee to recover the excess by granting Lessee a credit against Percentage <br />Rent next due and payable under the Lease, or (c) reject option (a) or (b). If Lessor <br />elects option (c) then Lessee shall have the right, upon written notice to Lessor within <br />ten (10) days after receipt of Lessor's election, to terminate this Lease, in which event <br />the Lease shall terminate thirty (30) days after Lessee delivers its termination notice <br />to Lessor. <br />13.3 Commencement of Renovation. Subject to Lessee's acquiring all <br />Entitlements and subject to acts and events beyond Lessee's control, Lessee shall <br />commence the Renovation within twenty four (24) months of the Commencement <br />Date hereof, and shall thereafter diligently pursue the same to completion. If Lessee <br />is not able through the use of reasonable diligence to procure all Entitlements by such <br />date, Lessee may at any time thereafter terminate this Lease upon at least sixty (60) <br />days' prior written notice to Lessor. In such case, the Term will end on the effective <br />date of Lessee's notice and neither party shall be liable to the other for any <br />obligations subsequently accruing hereunder. <br />13.4 Manner of Performance. Subject to Lessor's performance of its <br />obligations under Section 14.3 with regard to the Landfill, Lessee shall complete the <br />Renovation in good and workmanlike manner using experienced and reliable <br />architects, engineers and contractors approved by Lessor (which approval will not be <br />unreasonably withheld or delayed). Lessee shall punctually pay and discharge any <br />and all costs, expenses, and liabilities for, or in connection with, the Renovation, <br />LEASE AGREEMENT BETWEEN <br />CITY OF SAN LEANDRO AND AMERICAN GOLF PAGE 16 <br />11/13/97 FINAL J.\WPD\CSL\136\01\AGREE\GOLFCOUR\AGREF\LEASE.CLN <br />