1989-037-RES WHEREAS, THE RED RIVER VALLEY FAIR ASSOCIATION REQUESTED CITY COUNCIL

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AGREEMENT TO SUBORDINATE LANDLORD'S LIEN STATE OF TEXAS ~ COUNTY OF LAMAR ~ WHEREAS, on the 1st day of January, 1987, a Lease Agreement was made and entered into by and between the CITY OF PARIS, a municipal corporation, of Paris, Texas, as owner and Lessor, and RED RIVER VALLEY FAIR ASSOCIATION, INC., a corporation, as Lessee, covering the property and premises in Lamar County, Texas, commonly known as the Fairgrounds and being described in Exhibit A attached hereto and incor- porated herein for all purposes; and, WHEREAS, Red River Valley Fair Association, Inc., is arranging for the construction and erection of a poultry barn to be located on the fairground property, construction and erection of the poultry barn will have to be financed and the debt secured by a security agreement and financing statement on and against the property described on Exhibit B attached hereto, and in order to obtain such financing it is required by the lenders that the City of Paris subordinate its landlord's lien created by the execution of the afore- mentioned lease agreement; and, WHEREAS, the First National Bank is the managing financial institution and the loan will be participated in by Lamar National Bank and First Federal Savings and Loan Association of Paris; and, WHEREAS, the financial institutions providing the financing for the construction and erection of the poultry barn are requiring additional security in the form of the exhibits building and the property upon which it is located, described on Exhibit C attached hereto, and it is necessary that the City of Paris's landlord's lien created by the same above described lease, be subordinated to the security instruments securing the financing for the construction and erection of the poultry barn; and, WHEREAS, the construction of the poultry barn will be of substantial value and benefit to the City of Paris and its residents; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That the City of Paris, pursuant to a duly authorized resolution, being Resolution No. 89-037, acting by and through its duly authorized Mayor, Eric S. Clifford, and attested by the City Clerk, Mattie Cunningham, has and does hereby subordinate in favor of First National Bank of Paris, Lamar National Bank and First Federal Savings and Loan Association of Paris, in consideration of their lending Red River Valley Fair Association, Inc., as much as but not more than SIXTY THOUSAND AND NO/lOO ($60,000.00) DOLLARS, to finance the construction of a poultry barn on the property described on Exhibit B attached hereto, the landlord's lien it has and will hold on the newly constructed poultry barn, and the