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2. TERM AND EFFECTIVE DATE, The term in Section 2.01 of the Operator Agreement as amended and extended by this Extension Agreement shall end on June 30, 2025 unless otherwise terminated or cancelled pursuant to Section 12.02.2 of the Operator Agreement.The Effective Date of this Extension Agreement shall be July 1,2020. The City and Operator shall have the right, but not the obligation to extend this agreement for one additional three (3) years and one two (2) additional year periods by either party giving written notice no sooner than 12 months and no later than 6 months prior to the expiration of the current term and the subsequent extension. 3. MANAGEMENT AND INCENTIVE FEES TO OPERATOR. Commencing on and effective as of July 1, 2020, Sections 8.03 and 8.04 of the Operator Agreement shall be amended and restated in their entirety as follows: 8.03 Fixed Management Fee. 8.03.01 Annual Fixed Management Fee. The annual fixed management fee to be paid to OPERATOR("Fixed Management Fee") shall represent 80% of the Total Management Fee Attainable as follows: Operating Year Total Management 80% Fixed Fee Fee Attainable July 1,2020 to June 30,2021 $150,000 $120,00 On July 1,2021 and on each July 1st thereafter the amounts indicated above,for the ensuing year, shall be increased in the same proportion as changes in the Consumer Price Index, All Urban Consumers, San Francisco-Oakland-San Jose area; base years 1982-1984 = 100 published by the U.S. Dept. of Labor, ("CPI")shall have occurred since July 1,2020. 8.03.02 Payment of Fee. The Fixed Management Fee shall be paid in equal monthly installments on the last day of each month. 8.04 Incentive Management Fee. 8.04.1. Incentive Management Fee. In addition to the Fixed Management Fee, CITY shall pay OPERATOR an incentive fee of up to 20%of the Total Management Fee Attainable(as set forth in Section 8.03.1) (the "Incentive Management Fee"). The intent of the Incentive Management Fee is to provide an incentive to OPERATOR to improve the marketing and quality of the Golf Course,thereby increasing the number of rounds of golf and Gross Revenues.CITY shall pay OPERATOR an Incentive Management Fee equal to: (a) fifteen percent (15%) of the difference between the Gross Revenues (excluding food and beverage sales, Pro Shop merchandise sales and lesson fees)and the Base Performance Standard for Golf set forth in Section 8.04.2 if the Base Performance Standard for Golf is met; and(b)fifteen percent(15%) of the difference between the Gross Revenues from both food and beverage sales and Pro Shop merchandise Page 2 of 8