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Page 2 of 3 Total Management Fee Attainable 80% Fixed Fee July 1, 2025 to June 30, 2026 $181,250* $145,000 *On July 1, 2025 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; published by the U.S. Dept. of Labor, ("CPI") shall have occurred since July 1, 2020. The $145,000 estimate is the baseline, determined from the FY 2024-25 Management Fee of $140,451.79, with an estimated inflator of 3%. 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 sales and the Base Performance Standard for Merchandise and Food/Beverage set forth in Section 8.04.3 if the Base Performance Standard for Merchandise and Food/Beverage is met. 8.04.2 Base Performance Standards for Golf. CITY shall pay OPERATOR that portion of the Incentive Management Fee described in subsection 8.04.l(a) above if the following base performance standard for Gross Revenues excluding food and beverage sales, Pro Shop merchandise sales and lesson fees (the "Base Performance Standard for Golf') is met or exceeded: Contract Year beginning July 1, 2025 $3,000,000 To increase Annually by CPI 8.04.3 Base Performance Standard for Merchandise and Food/Beverage. City shall pay OPERATOR portion of the Incentive Management Fee described in Section 8.04.1(b) if the following base performance standard and revenue generated from food and beverage and Pro Shop merchandise sales (“the Base Performance Standard for Merchandise and Food and Beverage”) is met or exceeded: Contract Year beginning July 1, 2025 $1,100,000 To Increase Annually by CPI 3.OTHER CHANGES TO THE OPERATOR AGREEMENT •Section 11.01 is amended and restated as follows: Insurance. During the term of this Agreement, OPERATOR shall maintain in full force and effect, at its own cost and expense, insurance coverages with insurers with an A.M. Best’s rating of no less than A:VII. OPERATOR shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in Docusign Envelope ID: 4B46EC68-D08F-48D9-8216-B13D1BA06454