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<br />CITY OF SAN LEANDRO <br />RECYCLED WATER SERVICE AGREEMENT <br /> <br />PROVIDER: <br />City of San Leandro <br />Water Pollution Control Division <br />3000 Davis Street <br />San Leandro, CA 94577 <br /> <br />USER: <br />American Golf Corporation <br />2951 28th Street <br />Santa Monica, CA 90405 <br /> <br />The City of San Leandro ("Provider") and American Golf Corporation ("User") enter into this <br />Recycled Water Service Agreement ("Agreelnent") on this 22/) cl day of September, 2006 <br />("Effective Date"), in the County of Alameda. The User and Provider are collectively referred to <br />as the "Parties". <br /> <br />RECIT ALS <br /> <br />WHEREAS, User (as lessee) and Provider (as lessor) have entered into a long-term lease of the <br />Monarch Bay Golf Course, pursuant to a document titled "Lease Between The City of San <br />Leandro (Lessor) and American Golf Corporation (Lessee) dated November 15,1997," referred <br />to in this Agreement as the "Lease". The property subject to the Lease is generally referred to as <br />the "Golf Course" and is expressly described in the Lease; and <br /> <br />WHEREAS, Provider has available a cost effective source of recycled water which is available <br />for use for irrigation of appropriate portions of the Golf Course. The Parties agree use of <br />recycled water on the Golf Course is the highest and best use of this water resource, subject to <br />the terms of this Agreenlent. <br /> <br />1. AGREEMENT TO USE RECYCLED WATER. <br /> <br />a. Provider agrees to supply and User agrees to accept delivery of, store and use <br />recycled water on the Golf Course. User agrees to use the recycled water for those approved <br />irrigation uses as listed in Exhibit A, attached hereto and incorporated herein by this reference, <br />and subject to the requirements set forth in Exhibit B, attached hereto and incorporated herein by <br />this reference. <br /> <br />bo Except as otherwise provided in this Agreement, the Parties acknowledge and <br />agree that User intends to use the recycled water on all appropriate portions of the Golf Course <br />except the "greens" and "tee boxes" where higher quality water will be used for irrigation. <br /> <br />c. The Parties also acknowledge and agree that there may be circumstances where <br />User must blend higher quality water with the recycled water to obtain an acceptable irrigation <br /> <br />Recycled Water Service Agreement <br /> <br />sa 404097 v2:010960,0008 <br />8/7/06 <br />