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NOW THEREFORE, in consideration of the respective and mutual covenants <br />and promises hereinafter contained and made, and subject to all terms and conditions <br />hereof, the parties agree as follows: <br />1.0 USE GRANTED. <br />1.1 Use. Operator is hereby authorized and required to manage, operate and <br />maintain a Tennis Facility, and conduct activities including but not limited to: scheduling <br />of tennis court use; tennis lessons and tennis tournaments; participation in community <br />outreach to further the interest in the playing of tennis at discounted or free programs <br />and/or clinics; selling, purchasing, storing and repairing tennis related merchandise and <br />equipment; selling of pre -packaged foods and non-alcoholic beverages from within the <br />interior of the club house. Operator will have the use of the entire building known as the <br />Twist -Basler House. <br />1.2 Pro Shop and Food and Beverages. Operator may operate a pro shop on <br />the Facilities. Operator may also sell food and beverages. Except as noted in paragraph <br />1.4 below, the storage and/or sale of tobacco, alcoholic beverages and sexual products is <br />expressly prohibited. <br />1.2.1 Quality of Food and Non -Alcoholic Beverages. All prepackaged <br />foods and beverages sold or kept for sale shall conform to the Federal, State, and <br />County food laws, ordinances and regulations in all respects. No adulterated, <br />misbranded or impure articles shall be sold or kept for sale by Operator and all <br />merchandise kept on hand by Operator shall be stored and handled with due <br />regard for sanitation. <br />1.3 Staffing of Facilities. Operator shall maintain staffing levels sufficient to <br />comply with its responsibilities under this Agreement. The Facilities shall be staffed by <br />Operator at all times during Operating Hours. Proposed operating Hours shall be <br />submitted to the City annually for approval. Operator shall be responsible for supervision <br />of the entire Facilities, including, but not limited to, tennis courts, clubhouse, locker <br />rooms and showers, Twist -Basler House and parking lot(s). Operator shall also be <br />responsible for enforcement of safety practices and regulations. <br />1.4 Special Events and Rental of Facilities. Operator agrees that it will not <br />use, or rent, the Facilities for special events of any kind without first seeking prior written <br />approval from the Executive Director. To the extent that Operator desires to provide <br />alcoholic beverages at any of its events, it must first seek and obtain City approval as <br />well as any necessary permits, licenses or other approvals. As a condition to renting the <br />Facilities, or any portion thereof, the Operator shall first provide the City with proof of <br />insurance naming Operator and the City of Santa Ana as additional insureds and the <br />insurance coverage shall comply with the Insurance provisions in Section 7 hereof. <br />420089v2 <br />