PLEASANTON GOLF - COURSECO OPERATOR AGREEMENT

Direct Costs, CITY shall increase the applicable Direct Cost Budget(s) reasonably to account for such increased Direct Costs. 1.33 Golf Professional. "Golf Professional" is an employee of OPERATOR who is a Class "A" PGA or LPGA golf professional and supervises the golf operations at the Golf Course under the direction of the General Manager. 1.34 Gross Revenues. "Gross Revenues" are all money received as a result of the operation of the Golf Course and the sale of goods and services at the Golf Course, determined on an accrual basis in accordance with generally accepted accounting principles consistently applied. Gross Revenues shall include all green fees; rental fees for golf carts, golf clubs and bags, and other rental items; range balls; reservation fees; fees for golf handicap service; rental and concession payments; food and beverage sales; liquor sales; revenue generated from space rentals and from golf -related meetings, banquets, parties, tournaments, and other group gatherings; merchandise sales; golf instruction fees; revenues from golf schools; gross receipts received by licensees or concessionaires; proceeds from insurance; any amount received by OPERATOR in connection with any claim, demand, or lawsuit; and all other revenues generated by the Golf Course. Gross Revenues shall be reduced by any cash refunds or credits allowed on returns by purchasers. Gross Revenues shall not include the following: (a) sales taxes, excise taxes, gross receipts taxes and other similar taxes now or later imposed upon the sale of food, beverages, merchandise or services and paid to the appropriate taxing authority, whether added to or included in the selling price; (b) the amount of any gratuities to Golf Course employees, or service charges added to customer billings which represent gratuities to Golf Course employees (c) receipts from public telephones; (d) proceeds of any borrowings by OPERATOR or City; (e) initial operating funds in the Bank Account and funds subsequently provided by City to satisfy the working capital needs of the Golf Course pursuant to Section 9.03; and (f) refunds for the value of merchandise, supplies or equipment returned to shippers, suppliers or manufacturers. 1.35 Hazardous Materials. "Hazardous Materials" are defined in Section 5.13. 1.36 impositions. "Impositions" are all taxes and assessments (including without limitation real property taxes and assessments, possessory interest taxes, and personal property taxes), water, sewer or other similar rents, rates and charges, levies, license fees, permit fees, inspection fees and other authorization fees and charges, which at any time may be assessed, levied, confirmed or imposed on the Golf Course or the operation of the Golf Course. 1.37 Improvements. "Improvements" are defined in Section 3.05. 1.38 Incentive Management Fee. "Incentive Management Fee" is defined in Section 8.04.1. C!