PLEASANTON GOLF - COURSECO OPERATOR AGREEMENT

3.0 OWNERSHIP AND MANAGEMENT OF GOLF COURSE. 3.01 Ownership. Ownership of the Golf Course, all Facilities, Furnishings and Equipment, Resale Inventory and Supplies acquired by CITY or acquired by the OPERATOR on behalf of CITY, and all alterations, additions or betterments thereto, shall remain with CITY. 3.02 Retention of OPERATOR. 3.02.1 Role of the OPERATOR. Subject to the terms of this Agreement, CITY hereby retains OPERATOR as an independent contractor, and OPERATOR agrees, to: (i) determine, establish, and implement the policies, standards, and schedules for the operation and maintenance of the Golf Course and all matters affecting customer relations, in accordance with this Agreement including the attached exhibits; (ii) hire, train, and supervise the General Manager, Golf Course Superintendent, Golf Professional and Food Service Manager (collectively "Management Staff') and all Golf Course employees; (iii) supervise and direct all phases of advertising, sales, and business promotion for the Golf Course; (iv) establish accounting and payroll procedures and functions for the Golf Course; (v) procure and maintain all equipment necessary and appropriate for the profitable and efficient operation of the Golf Course; and vi) maintain the environmental impact mitigation areas in the Golf Course and manage compliance with all environmental plans, permits and agreements as related to the Golf Course. Parties understand that costs of undertaking the services above are reimbursed pursuant to Section 8 of this Agreement. Further, CITY may require OPERATOR, and OPERATOR agrees, to provide master planning and capital budgeting for the Golf Course operation. 3.02.2 Goal for the OPERATOR. CITY intends for the OPERATOR to operate the Golf Course with a priority emphasis on maintenance and customer service, within the fiscal constraints of the CITY. 3.03 Warranties. OPERATOR warrants and represents that it has full power and authority to enter into this Agreement and perform the obligations in this Agreement; that consummation of this Agreement will not create a default under any other agreement and will not violate any law, regulations, order, judgment, decree or rule; that OPERATOR has conducted its own review of the plans and specifications for the Golf Course prior to execution of this Agreement; and that OPERATOR is not relying on any representation of the CITY in connection with the execution of this Agreement. OPERATOR warrants and represents that it is authorized to transact business in the State of California and that all of OPERATOR's employees are properly licensed and trained for their respective positions and responsibilities. CITY warrants and represents that it has the full power and authority to enter into this Agreement and perform the obligations in this Agreement; and that consummation of this Agreement will not create a default under any other agreement and will not violate any law, regulation, judgment, decree or rule. 7