SANTA ANA GOLF, LLC (COURSECO, INC.)

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6.5 No Default Due to Lack of Funds. If Contractor is unable to perform any of its Services or covenants under this Agreement because of the failure on the part of the City to provide the funds pursuant to Article 6, such failure of performance on the part of Contractor shall not be deemed a default on the part of Contractor and shall not give rise to any right of termination, damages, or any other remedy against Contractor, unless the failure to provide the funds is due to the occurrence of a breach of this Agreement by Contractor or the gross negligence, willful misconduct or fraud by Contractor. 6.6 Reports to Ci . Contractor will deliver, or will cause to be delivered,to City the following forecasts and statements: (a) within twenty (20) days after the end of each calendar month, an update to any approved plans and/or budgets with monthly and year-to-date financial statements which shall include a balance sheet, a profit and loss statement showing the results of operation of the Facility for such month and for the year to date; and (b) within sixty(60) days after the end of each Operating Year(as defined herein), financial statements,including a balance sheet, a profit and loss statement and actual versus budget comparison showing the results of operation of the Facility for such year (it being understood and agreed that such annual statement will reflect the annual Base Management Fee paid to Contractor). If requested by City, and at City's expense, the financial statements shall be accompanied by an opinion rendered by an independent certified public accounting firm. (c) at least sixty (60) days in advance of each Operating Year (except the first Operating Year), an estimated profit and loss statement and an estimated cash flow projection for the ensuring Operating Year. (d) upon reasonable request made by City, Contractor shall provide inventory list of equipment with corresponding hours of use. 6.7 Contractor Accounting Software; Other Personal Property Owned by Contractor. The parties acknowledge and understand that the accounting software used at the Facility is owned by Contractor, and City shall have no rights or interests in such software. Upon the expiration or earlier termination of this Agreement,the accounting software and other personal property located at the Facility owned by Contractor shall be removed from the Facility by Contractor; provided, however, the financial data of and related to the Facility shall remain the property of City. 6.8 Payroll. The parties acknowledge and agree that a payroll processing company will be processing the payroll for the Facility employees. Prior to the date of a payroll payment, Contractor will be notified by the payroll processing company of the amount of the payroll payment. On the date of the payroll payment, the payroll processing company will automatically withdraw the amount of the payroll payment from the Operating Account and deposit such amount in a central payroll account on which payroll checks will be drawn. -16-