SANTA ANA GOLF, LLC (COURSECO, INC.)

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I. Maintenance Responsibilities. Contractor shall undertake the following maintenance responsibilities in connection with its management of the Facility under the terms of this Agreement: a) Contracts. Enter into such contracts for the furnishing of utilities and maintenance, and other services to the Facility in Contractor's name, provided however that (i) any such contract which is for a term greater than twelve (12) months and for an aggregate cost in excess of five thousand dollars ($5,000.00) and is not otherwise approved via the Annual Budget Plan shall be approved in advance by City, and(ii) in the event of a termination of this Agreement for any reason, City or City's designee shall assume any such contracts which are then in effect and unexpired at the time of such termination and indemnity and hold harmless Contractor from and against any additional obligations thereunder which may have accrued after termination of this Agreement; b) Repairs and Improvements. Make all repairs, decorations, revisions, alterations, and improvements to the Facility as shall be reasonably necessary for maintenance of the Facility in good and sanitary order, condition and repair; c) Operating Expenses. Incur such expenses, as Operating Expenses of the Project, as shall be necessary for the operation and maintenance of the Facility to the quality standards contemplated by this Agreement and the Annual Budget Flans, including without limitation incurring lease expenses for Furnishings and Equipment and costs for Operating Inventory; expenses for insurance premiums in accordance with insurance coverage required hereunder, and payment of attorneys'fees and other costs of legal compliance and/or legal settlement as approved by City's Contract Administrator in advance; d) Inventory. Maintain a level of Operating Inventory necessary to satisfy the quality standards contemplated by this Agreement and the Annual Budget Plans and to supply the needs of the Facility and its customers; e) Facilities Maintenance Services. At all times, as a Direct Cost, Contractor shall maintain and operate the Facility, including cafe restrooms, on-course restrooms and cart barn and all other facilities and services offered. Contractor shall keep all fixtures, furnishings and equipment within the facilities clean,neat,safe,and sanitary,in good order and in a manner. Contractor shall maintain and operate the facilities reasonably in accordance with the highest standards of cleanliness and shall keep clean and free from rubbish. Contractor shall, during the term of this Agreement maintain and keep in good order, condition and.