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3. The CVD acknowledges that it has inspected the premises and accepts the same "as is" and further acknowledges that it will inspect the premises each year prior to making its written request naming the specific usage period, and indicate in said written request that the premises are accepted in an "as is" condition. For March 289 through May -?17 2003, the use is nonexclusive at all locations with the exception of a twenty eight -& (28) thirty day (30)exclusive use period at_ Coneio_ Creek South commencing two (2) days prior to the Chili Cookoff event (the Friday preceding the Wednesday carnival opening), and terminating upon the conclusion of the cleanup and fence removal from the Conejo Valley Days celebration on or before May -2217. During the nonexclusive period, the DISTRICT may use or grant use of the subject premises as long as such use does not interfere with the preparation of the subject premises for the Chili Cookoff event and Conejo Valley Days celebration. At the conclusion of the Conejo Valley Days events, and no later than one (1) week from the conclusion of the Conejo Valley Days celebration, the CVD agrees to leave the premises in as good a condition as when received by it, and shall remove all structures, materials, equipment, and trash which results from the Conejo Valley Days celebration from the premises and shall otherwise restore the premises as necessary to place them in the same condition as when received. 4. The CVD shall not attempt to cause any permanent improvement to the property in any way without the prior written consent of the DISTRICT. Each permanent improvement shall have a separate agreement between the parties, with each separate agreement specifying the details of.said improvement including, but not limited to, the location and who shall be responsible for the costs, maintenance, and insurance of said improvement. Each agreement shall set forth a buyout provision establishing a formula and a procedure whereby DISTRICT shall repay the CVD for the cost of the improvement in the event that this Agreement is terminated by the DISTRICT pursuant to the terns and conditions of paragraph 9 of this Agreement. 5. The CVD and its agents and employees shall in its usage of the property comply with all government ordinances, orders, policies, and regulations with respect to all activities on the premises. Lack of compliance by CVD may be considered a breach of this contract, and the General Manager or his designee may revoke the permit; appeal of such revocation may be made by CVD to the Board of Directors. -4-