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if any; (e) any operating funds provided or authorized by City to Contractor to subsidize and/or <br />support ongoing operations in the event revenues do not meet expenses; and (f) refunds for the <br />value of merchandise, Supplies or equipment returned to shippers, suppliers or manufacturers. <br />Impositions means all taxes, assessments, water, sewer or other similar rents, rates and <br />charges, levies, license fees, permit fees, inspection fees and other authorization fees and charges, <br />which at any time may be assessed, levied, confirmed or imposed on the Facility or the operation <br />of the Facility (excluding federal and state taxes imposed on the income earned by Contractor or <br />its employees hereunder). <br />Improvements means the buildings, structures (surface and subsurface) and other <br />improvements now or hereafter located on the Land. <br />Insurance Requirements means all requirements of each insurance policy, and all orders, <br />rules, regulations and other requirements of the National Board of Fire Underwriters (or any other <br />body exercising similar functions) applicable to the Facility or the operation of the Facility; this <br />term shall not, however, include recommendations of insurance carriers. <br />Land means the parcel or parcels of land described in Exhibit "A" attached to this <br />Agreement and incorporated herein by this reference. <br />Legal _ Requirements means all laws, statutes, ordinances, orders, rules, regulations, permits, <br />licenses, authorizations, directives and requirements of all governments and governmental <br />authorities, which now or hereafter may be applicable to the Premises and the operation of the <br />Premises. <br />Major Capital Improvements shall mean a project for the erection or improvement of the <br />Facility's buildings, structures, paved pathways, drains, or sewers. Whereas, Non -Major Capital <br />Improvements shall mean the maintenance and repair of Facility buildings, structures, paved <br />pathways, drains, or sewers. <br />Management Fee has the meaning set forth in Section 5.1. <br />Net Operating Income means Gross Revenues from the Facility, minus all operating <br />expenses which are attributable (in accordance with generally accepted accounting principles) to <br />the use and operation of the Facility, including, without limitation: employee costs, operating <br />expenses, Centralized Services, the Management Fees, expense reimbursements, all insurance <br />costs related to the operation of the Courses, personal property taxes (limited to an amount <br />allocable to the Facility), and golf cart leases and operating costs; provided, however, such <br />expenses shall not include any charges for amortization, depreciation, capital expenditures, debt <br />service, and State and Federal income taxes, overhead allocations, or any Incentive Management <br />Fees paid to Contractor hereunder. <br />OperatingPmeans the period beginning on the Commencement Date and ending on <br />the earlier to occur of (a) the last day of the term of this Agreement, or (b) if this Agreement is <br />terminated, the effective date of such termination ("Last Operating Day"). <br />52 <br />