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II. Other Responsibilities. Contractor shall undertake the following responsibilities in <br /> connection with its management of the Facility under the terms of this Agreement: <br /> a) Licenses and Permits. Apply for, and use its commercially reasonable best efforts to <br /> obtain and maintain, all licenses and permits reasonably required by City(or by applicable <br /> Legal Requirements, as defined herein) in connection with the operation and management <br /> of the Facility in the Contractor's name or in the name of an Affiliate of Contractor; and <br /> City agrees to execute any and all applications and such other documents as shall be <br /> reasonably required and to otherwise cooperate, in all reasonable respects, with Contractor <br /> in the application for, and obtaining and maintenance of, such licenses and permits; and <br /> Contractor agrees that it shall maintain a City of Santa Ana business license during the <br /> Term of this Agreement; <br /> b) Insurance and Legal Requirements. Use best efforts to do, or cause to be done, all such <br /> acts and things in and about the Facility as shall be reasonably necessary to comply with <br /> all Insurance requirements and Legal Requirements, and to discharge any lien, <br /> encumbrance, or other charge on the Facility; including, with City's prior written consent, <br /> hiring legal representation and paying attorneys' fees, as an Operating Expense of the <br /> Facility, as necessary to comply with any Legal Requirements and defend the Facility <br /> against legal claims and pay all Impositions and insurance premiums when due, if City <br /> requests in writing that Contractor assume responsibility on City's behalf for the payment <br /> of such Impositions and insurance premiums; <br /> c) Accounting. Maintain a method of accounting in accordance with generally accepted <br /> accounting principles consistently applied ("GAAP") which accurately reflects the Gross <br /> Revenues and Operating Expenses and disbursements of Contractor in connection with the <br /> Facility's operations. <br /> d) Golf Professional Services. Provide golf starter services; sell and rent golf equipment; <br /> sell golf-related clothing and supplies;provide instructional services in the playing of golf; <br /> rent golf carts; and operate the driving range. <br /> e) Pro Shop and Merchandise. The Pro Shop shall be open during the normal operating <br /> hours of the golf course as provided in the Golf Course Manual. <br /> • Inventory. Contractor shall procure and maintain in the Pro Shop such <br /> inventory of golf merchandise as reasonably necessary or appropriate to <br /> adequately meet public demand.and consistent with the goal in Section 3.L <br /> Contractor shall receive approval from City before increasing inventory <br /> levels to $40,000 or over in any given month. <br />