Common use of PAYMENTS TO THE DEPARTMENT Clause in Contracts

PAYMENTS TO THE DEPARTMENT. A. Operator shall pay to Department an annual Operating Agreement Payment in the amount of (“Base Payment”) plus an additional payment of fifteen (15) percent of gross revenue in excess of (“Variable Payment”). The Base Payment is payable in monthly installments in the amount of . Each installment shall be due on the first day of each month and shall be paid without penalty on or before the tenth day of each month for which said installment is due. If the Effective Date occurs on any date other than the first of the month, this payment for a portion of a month shall be pro-rated. The Variable Payment for the First Term Year shall be due March 31 of the Second Term Year and on March 31 of every year for the prior Term Year thereafter for the remainder of the Term. B. The Base Payment shall increase annually by three (3) percent, beginning on the first anniversary of the Effective Date. C. For purposes of calculating the annual Variable Payment, gross revenue shall be defined to include all sales at the gross selling price of merchandise and items of every character sold in, upon, or through any part of the Golf Course Property by Operator, or any other person, firm, or corporation, including, but not limited to, all revenues and sales related to the operation of the golf course, pro shop, and gross charges for all services to customers or patrons, including, but not limited to, greens fees, memberships, equipment rentals, lessons, camps, golf outings, and events performed by Operator or any other person, firm or corporation, in, upon, or through any part of the Golf Course Property, and shall include sales and charges for cash and credit regardless of whether or not the same is collected or uncollected, less only all proper credits for returned merchandise, merchandise exchanges and merchandise cancellations, allowances or discounts as well as any sales taxes collected by Operator and remitted to taxing authorities with respect to each Term Year. Gross revenue shall not include the value of any gift certificates or memberships sold prior to the Effective Date but redeemed after the Effective Date. D. On or before February 28 of each Term Year, and on or before the February 28 after this Operating Agreement has terminated, Operator shall provide Department with a financial report prepared by a Certified Public Accountant licensed to practice accounting in the State of New Jersey setting forth Operator’s gross revenue for the previous Term Year ending December 31 and the results of the Audit or Special Report required by Paragraph 4 of this Operating Agreement (“Report”). Based on this Report, Operator’s Variable Payment owed to Department for the previous Term Year shall be determined. E. All Operating Agreement Payments shall be paid by check made payable to "Treasurer-State of New Jersey" and sent to: Department of Environmental Protection Administrator, Office of Leases MAIL CODE 501-04C X.X. Xxx 000 Xxxxxxx, XX 00000-0000 F. Any Operating Agreement Payment not made on or before the date provided in Subparagraph 3A hereof shall be considered past due. All past due amounts shall be assessed a monthly penalty of one and one-half percent (1 1/2%) of the total amount due calculated on the tenth (10th) day of each month. G. In the event any check for payment is returned to Department, all future compensations shall be made by Certified or Cashier Checks only.

PAYMENTS TO THE DEPARTMENT. A. The Operator shall pay to the Department an annual Operating Agreement Payment in the amount of fee (“Base PaymentRent”) plus which shall be an additional payment amount equal to the greater of fifteen Sixty-Six Thousand Dollars and Zero Cents (15$66,000.00) or Ten percent (10%) of gross revenue the Total Annual Gross Revenue during each said Calendar Year. With the understanding that the first and last year Rent may not be based on full calendar years. B. The Operator shall pay the minimum Rent of Sixty-Six Thousand Dollars and Zero Cents ($66,000.00) in excess of twelve (“Variable Payment”). The Base Payment is payable in 12) monthly installments in the amount of . Each installment shall be due Five Thousand Five Hundred Dollars and Zero Cents ($5,500.00) on the first day (1st) of each month and shall be paid without penalty on or before the tenth day of each month for which said installment is duemonth. If the Effective Date occurs on any date other than the first of the month, this payment for a portion of a the first month of the Operating Agreement shall be pro-rated C. The Operator shall make a final determination of the total payment of Rent due for said Calendar Year based on the audit of Annual Total Gross Revenue. The Variable Payment for the First Term Year shall be due March 31 of the Second Term Year and on March 31 of every year for the prior Term Year thereafter for the remainder of the Term. B. The Base Payment shall increase annually by three (3) percent, beginning on the first anniversary of the Effective Date. C. For purposes of calculating the annual Variable Payment, gross revenue Annual Total Gross Revenue shall be defined to include all sales at the gross selling price of merchandise and items of every character sold in, upon, or through any part of the Golf Course Property by Operator, or any other person, firm, or corporation, including, but not limited to, all revenues and sales related to the operation of the golf course, pro shop, and gross charges for all services to customers or patrons, including, but not limited to, greens fees, memberships, equipment rentals, lessons, camps, golf outings, and events performed by Operator or any other person, firm or corporation, in, upon, or through any part of the Golf Course Property, and shall include sales and charges for cash and credit regardless of whether or not the same is collected or uncollected, less only all proper credits for returned merchandise, merchandise exchanges and merchandise cancellations, allowances or discounts as well as any sales taxes collected by Operator and remitted to taxing authorities with respect to each Term Year. Gross revenue shall not include the value of any gift certificates or memberships sold prior to the Effective Date but redeemed after the Effective Date. D. On or before February 28 May 1st of each Term Year, and on or before the February 28 May 1st immediately after this Operating Agreement has terminated, Operator shall conduct and provide Department with a financial report complete audit of its gross revenue for the prior Calendar Year ending December 31st prepared by a Certified Public Accountant (CPA) licensed to practice accounting in the State of New Jersey setting forth Operator’s gross revenue (“Audit”) or Special Report required in Paragraph 4 of this Operating Agreement. In the event that the Audit or Special Report determines that the percentage of Total Annual Gross Revenue for said Calendar Year is greater than the previous Term Year ending December 31 and the results minimum Rent, Operator shall, upon submission of the Audit or Special Report required by Paragraph 4 of this Operating Agreement (“Report”). Based on this Report, Operator’s Variable Payment owed pay such amount to the Department to make the total annual Rent equal to ten percent (10%) of the Total Annual Gross Revenue for said Calendar Year. With the previous Term Year shall understanding that the first and last year Rent may not be determinedbased on full calendar years. E. All Operating Agreement Payments The Rent shall be paid by check made payable to "Treasurer-Treasurer - State of New Jersey" and sent to: Department of Environmental Protection AdministratorNatural & Historic Resources Office of Leases & Concessions Manager, Office of Leases MAIL CODE Mail Code 501-04C X.X. Xxx 000 Xxxxxxx, XX 00000-0000 F. 0000 C. Any Operating Agreement Payment payment of the Rent not made on or before the date provided in Subparagraph 3A hereof first of the month shall be considered past due. All past due amounts shall be assessed a monthly penalty of one and one-half five percent (1 1/25 %) of the total amount due calculated on the tenth (10th) day of each month. G. D. Any payment of Rent not received by the last day of the month will be considered a default pursuant to Paragraph 29 and will trigger the remedies available to the Department thereunder. E. In the event any check for payment is returned to the Department, all future compensations compensation shall be made by Certified or Cashier Checks Cashier’s Check only.

PAYMENTS TO THE DEPARTMENT. A. Operator shall pay to Department an annual Operating Agreement Payment in the amount of Dollars ($ ) (“Base Payment”) plus an additional payment of fifteen (15) percent of gross revenue in excess of $ (“Variable Payment”). The Base Payment base payment is payable in monthly installments in the amount of . Each installment shall be due on the first day of each month and shall be paid without penalty on or before the tenth day of each month for which said installment is due. If the Effective Date occurs of this Operating Agreement, and on any date other than the first anniversary of the month, this payment Effective Date for a portion the remainder of a month shall be pro-ratedthe Term. The Variable Payment payment for the First Term Year shall be due March 31 of the Second Term Year and on March 31 of every year for the prior Term Year thereafter for the remainder of the Term. B. The Base Payment shall increase annually by three (3) percent, beginning on the first anniversary of the Effective Date. C. For purposes of calculating the annual Variable Payment, gross revenue shall be defined to include all sales at the gross selling price of merchandise and items of every character sold in, upon, or through any part of the Golf Course Property by the Operator, or any other person, firm, or corporation, including, but not limited to, all revenues and sales related to the operation of the golf course, pro shopand any food and beverage concession, and gross charges for all services to customers or patrons, including, but not limited to, greens fees, memberships, equipment rentals, lessons, camps, golf outings, and events to performed by the Operator or any other person, firm or corporation, in, upon, or through any part of the Golf Course Property, and shall include sales and charges for cash and credit regardless of whether or not the same is collected or uncollected, less only all proper credits for returned merchandise, merchandise exchanges and merchandise cancellations, allowances or discounts as well as any sales taxes collected by the Operator and remitted to taxing authorities with respect to each Term Year. Gross revenue shall not include the value of any gift certificates or memberships sold prior to the Effective Date but redeemed after the Effective Date. D. C. On or before February 28 of each Term Year, and on or before the February 28 after this Operating Agreement has terminated, Operator shall provide Department with a financial report prepared by a Certified Public Accountant licensed to practice accounting in the State of New Jersey setting forth Operator’s gross revenue for the previous Term Year ending December 31 and the results of the Audit or Special Report required by Paragraph 4 of this Operating Agreement (“Report”). Based on this Report, Operator’s Variable Payment owed to Department for the previous Term Year shall be determined. E. D. All Operating Agreement Payments shall be paid by check made payable to "Treasurer-State of New Jersey" and sent to: Department of Environmental Protection Administrator, Office of Leases MAIL CODE 501-04C X.X. Xxx 000 Xxxxxxx, XX 00000-0000 F. : E. Any Operating Agreement Payment not made on or before the date provided in Subparagraph 3A hereof shall be considered past due. All past due amounts shall be assessed a monthly penalty of one and one-half percent (1 1/2%) of the total amount due calculated on the tenth (10th) day of each month. G. F. In the event any check for payment is returned to Department, all future compensations shall be made by Certified or Cashier Checks only.