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17-Resolution between RRVF subleasing a portion of the fairgrounds CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 5-3-11 Council Date: Finance Gene Anderson 17. 5-9-11 RECOMMENDED MOTION: Motion to approve a resolution authorizing a new sublease agreement between the Red River Valley Fair Association (RRVFA) and the Paris Rodeo & Horse Club (PRHC). POLICY ISSUE(S): Administration The Red River Valley Fair Association has historically subleased a portion of the fairgrounds to the Paris Rodeo and Horse Club. The previous lease expired May 1, 2011 and the five year extension option was not exercised. Instead the RRVFA is requesting approval of a ten year lease followed by five year extension option. The reason for this request is that when the PRHC borrows money for capital improvements at this location, the lending institution will require a lease at least as long as the note term. Other than the term, this lease agreement is identical to previous leases. BOARD/COMMISSION RECOMMENDATION: None EXHIBITS: Resolution and Agreement ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $NA ❑ Department Report ® Resolution Budgeted Amt. $NA ❑ Presentation ❑ Ordinance YTD Actual $NA ❑ Public Hearing ❑ Other Acct. Name NA Acct. Number NA FISCAL NOTES: None REVIEWED AND APPROVED BY: ® Administration ® City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 _ 86 Draft RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING THE GROUNDS SUBLEASE BETWEEN THE RED RIVER VALLEY FAIR ASSOCIATION AND THE PARIS RODEO AND HORSE CLUB; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Red River Valley Fair Association has requested approval from the City Council of the City of Paris to enter into a grounds sublease agreement with the Paris Rodeo and Horse Club in the form shown in Exhibit A, attached hereto; and, WHEREAS, it would be in the best interests of the citizens of the City of Paris that such grounds sublease agreement be approved, and the Mayor should be authorized to acknowledge approval of said sublease by signing the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the Red River Valley Fair Association be, and it is hereby, granted approval to enter into the grounds sublease agreement with the Paris Rodeo and Horse Club in the form shown in Exhibit A, attached hereto. Section 3. That the Mayor be, and he is hereby, authorized and directed to acknowledge approval, on behalf of the City of Paris, of said grounds sublease agreement by signing the same. Section 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 9th day of May, 2011. Will Biard, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney 87 GROUNDS SUBLEASE AGREEMENT SUBLESSOR: SUBLESSEE: RED RIVER VALLEY PARIS RODEO & HORSE CLUB FAIR ASSOCIATION, INC. EXHIBIT A 88 oie relit Pace Preamb e--_ rues DEMISE AND DESCRIPTION OF PROPERTY 4 ARTICLE _ER-M 41.01. Term of Sublease 4 41.02. Option to Extend Terra 4 ARTICLE 2. RENT 5 42.01. Consideration 5 2.02. Gross Receipts Defined #2.03. Statement of Gross Receipts 6 42.04. Books and Records of Sublessee.......... 6 ARTICLE 3. USE OF PREMISES 43.01. Primary Purpose 7 13.02. illegal Use Not Permitted 7 43.03. Waste and Nuisance I ARTICLE 4. UTILITIES 7 ARTICLE 5. REPAIRS, MAINTENANCE, AND RESTORATION 8 45.01. Lessee's Duty to Maintain and Repair.... 8 15.02. Damage and Destruction 8 ARTICLE 6. MECHANICS' LIENS o ARTICLE 7. INSURANCE AND INDEMNIFICATION 9 47.01. Insurance on Buildings & Improvements... 9 U.02. Liability insurance 47.03. Construction Liability Insurance........ 9 47.04. Certificate of Insurance A) 41.05. Indemnification of Sublessor 10 ARTICLE 8. 'T'AXES 0.01. Payment by Sublessee 10 48.02. Payment by Sublessor 10 ARTICLE 9. CONSTRUCTION BY SUBLESSEE 11 49.01. Ownership of Buildings, Improvements, and Fixtures l 49.02. Right to Remove improvements i 49.03. Removal Restrictions 12 ARTICLE 10. SUBLEASE 12 110.01. Subletting by Sublessee 12 ARTICLE 11. DEFAULT AND REMEDIES 12 411.01. Termination on Default 12 #11.02. Waiver of Breach 12 411.03. Possession after Default 13 ARTICLE 12. SPECIAL PROVISIONS 13 012.01. Possession of Subleased Premise by Sublessor 13 #12.02. Advertisement Prohitition !I 412.03. Use of Additional Premises by Sublessee 1 412.04. Parking ARTICLE 13. MISCELLANEOUS i6 413.01. Notices and Addresses . . . . . . . . . . . . . . . . . . ~ 413.02. ParEiss Eound. 15 112.03. _ns Law Lo 00 8 . . . . . . . . . . . . . . . . . - ` 113.C5. 2ADr XgreemenLs 13 #13.C6. AT .ent 16 413.01. s and Rem oies Cumulative . . . . . . . . . 16 113.08. iorney's Fees and Cos 16 X13.00. fForce Majeure 16 #13.10. Time of Essence 17 #13.11. Sublease Approval 17 ;;13.12. Sublease Subject to Main Lease......... 17 ACKNOWLEDGEMENTS 19-20 City of Paris Approval 20 90 T . v CL7-AS _r s, etwe IT!% V <L__'' ~AIR_ ASSOCIA' IOtd, INC. a s corporal ion, caLed Su;,lessor in this agreement, and PARIS RODEO AND HORSE CLUB, a Texas corporation, called Sublessee in this agreement. DEMISE AND DESCRIPTION OF PROPERTY In consideration of the mutual covenants and agreements set forth in this sublease, and other good and valuable consideration, Sublessor leases to Sublessee and Sublessee leases from Sublessor the property, referred to as the subleased premises in this agreement, located in Lamar County, Texas, described as follows: BEGINNING at the Northwest corner of 6th Street and Clement Road. THENCE down the North edge of the extension of Clement Road inside the property known as the Fair Grounds, belonging to the City of Paris, and to Lessor, south along west side of 6th to a point 600 feet; THENCE in line with existing fence, THENCE West to creek running North and South through Fair Grounds property 389 feet; THENCE North along the east edge of creek_ running Nor`_h and South through the Fair Grounds property 610 feet; THENCE East along the West boundary line of Clement Road to the corner of Clement Road and 6th street N.E. 315 feet; SAVE. Ai\]D EXCEPT that area which is- West of the creek. that runs North and South from Center Street to Clement Road. ARTICT 1. TEi<t'l Terms of Sublease I#1.01. The term of this sublease shall be 1_or_ a period of ten years, beginning on the 1st day of May, 2011 and ending on May 1, 2021, unless sooner terminated as provided in this sublease. However, this sublease shall terminate earlier in the event of the termination of lease agreements between the CITY OF PARIS, a municipal corporation, as Lessor, and RED RIVER VALLEY FAIR ASSOCIATION, INC.,a Texas corporation, as Lessee, leasing the property described above, referred to as the Main Lease in this agreement. OP'T'ION TO EXT' 1D TERM f1.02. SLl l ha. t le r-LgClt ± exend %1_ S CleaSc bc`JOn'A, t ti e e--)i a o-i d, to v' ovlded i , #I . 01 . or) `he fo_! 1 o _rms 7 a n ,1 4 91 1 cer- and and conay.:1ons o._ __._E S-z,✓ ease, Sub, Eee clay extend e~m o_ t: i s _ease for a pe-__od uf five year wi Ln the extended tern to begin on the day toll o`.^JinQ the xpirat_cn dare of the sublease term specified in #1.01. Provided, however, that if at the date of the expiration of the original term, Sublessee is in default beyond any grace period provided in this sublease in the performance of any of the terms or provisions of this sublease, the remaining option shall be null and void. All the terms, covenants, and provisions of this sublease shall apply to all extended sublease terms. The waiver of Sublessor of any breach of a term, covenant, or condition of this sublease shall not be deemed to be a waiver for the purpose of Sublessee's right to extend the term of this sublease under this paragraph, provided Sublessor has given notice of any breach as required by the terms of the sublease. b. Sublessee may exercise the option to extend this sublease by giving to Sublessor notice of its intention to do so not earlier than August 1, 2021, and not later than September 30, 2021 prior to the expiration of the sublease term. To constitute effective notice of an intention to exercise the option under this sublease, the notice must be sent by certified or registered mail ro Sublessor at the address provided in # 13.01. of this sublease and must be postmarked no later than the latest date provided in this section for Sublessee's exercise of the option. Any notice to exercise the option by Sublessee is subject to the provisions of 1.02. (a) above. ARTICLE 2. R.EINT Consideration 42.01. Sublessee agrees to make improvement on the subleased Premises to the exl,erlL. Of five per cer- or 1 nl;Ual G` SS receipts. Sublessee agrees and covenants that it will expend during each year, for such purpose, five per cent (05`0) of its total gross receipts for the ten year term of this sublease. However, in the event Sublessee expends in excess of five per cent (05%) during any one year hereof for such purpose, such excess may be credited on the Iota' amount to be expended by Sublessee hereunder. Gross Receipts Defined tt2. G __r t Leim "gros z r c-eipts" as used In Li is suD ~acze ? cans al~_ sums of money receiV"ed by qu11)l e S s e e from aous _ 'less J 92 - - sl fl -fed; - a. ie Lerm "gross reCe'tiLS" in .Cl' Cles, but 1S not -L C 0, 1. T:^e amounts received rom the sale of merchandise or services sold or performed, in, on, or from the subleased premises. ii. Proceeds from rentals of the premises. iii. The amounts received for ticket sales for any activity o,. the premises. iv. Amounts received for Sublessee's annual rodeo. V. The amounts received from any other source. vi. The terms "sums of money" shall include services rendered or value received by Sublessee from others in lieu of money received for use of the premises. This does not include donated services for charitable purposes. Statement of Gross Receipts 42.03. On or before the 15th day following the end of each quarter of each year of this Sublease, Sublessee must furnish Sublessor with a true and accurate statement, signed by Sublessee or by an authorized representative of Sublessee, showing it- gross receipts for each month during the term of this sublease and an_y extension of this sublease. For the purposes of this paragraph, "Each quarter" rrleans April 15th, July 15th, October 15th and January 15th of each year, beginning May 15th, 2011. Sublessee agrees to provrd,y Iits s,-alemennt o gross reCe pLS to Sublessor by sending a copy to Sublessor's mailing address, located at 570 East Center Street, Paris, Texas 75460, or such other location or locations as Sublessor shall from time to time designate by written notice to Sublessee. Books and Records of Sublessee # 2.04. Sublessor and authorized representatives of Sublessor shall have the right to examine the statements, and their support'-rig documents, described in the preceding paragraph at the !eased premises during Sublessee's regular business hours. ].f, on examination of the books or records of Sublessee, a mater a! error shall_ be revealed in favor of the Sublessor than _e~~lts iri D.dd' r-i-_nia1 gross receipts, Lhen the reasonable costs of -,he 6 93 ,a~ costs _ nat1 __-ss r' n exa ne t.__ _ t ent2 a v _ 1 g dOCl:.._... 11 ba - .r yea to no _ _an ~iaice I: ye _ of th1S ~i-lease upon so-.abl~ not S~.-lessee. Failure of Sublessee to report a-1 gross receipts shall be grounds for the termination of this agreement upon written notice from Sublessor to Sublessee of a material error and the error is not corrected within thirty days. ARTICLE 3. USE OF PREMISES Primary Purpose #3.01. Sublessee shall have the right to use the leased premises for any lawful purposes. In this connection, and without detracting from the foregoing, it is understood and agreed that the primary purpose for which the leased premises have been leased and hired is for activities and purposes of the Sublessee as outlined in its Articles of Incorporation and By-laws. Illegal- Use Not Permitted #3.02. Sublessee agrees not to use all or part of the leased premises or any building situated upon the leased premises for any use or purpose in violation of any valid and applicable law, regulation, or ordinance of the United States, the State of Texas, or the City of Paris, Texas, or other lawful authority having lurisdiction ever the leased premises. Waste and Nuisance 43.03. Sublessee shall not use, or permit the use of, the premises in any manner that results In waste of the premises or constitutes a nuisance. Sublessee, at i 1 eupenSe, W 1 1 1 rrr,i-,i-,lyr and will cause its officers, employees, agents, and invitees tc comply, with all applicable laws and ordinances and with all applicable rules and regulations of governmental agencies, concerning the use of the premises. ARTICLE 4. UTILITIES 44.01. Sublessee shall pay or cause to be paid all charges for water, heat, gas, electricity, sewers, and all other utilities used on the subleased premises throughout the term of this sublease, including any connection fees. %iRTICLE 5. REPAIRS, MAINTENANCE, AND 7 94 t~/ - _n and p,c' - n5. O a times _ c Li.? tern ~i ----S S,-, 5e, Sublessee w_LI_ :keep and mainta-i n, or cause Co be kept maintained, ail existing buildings and all buildings and improvements which may be erected on the subleased premises in a good state of appearance and repair, reasonable wear and tear excepted, at Sublessee's own expense. Sublessee shall keep the subleased premises mowed in any area not occupied by buildings and improvements. Damage or Destruction #5.02. In the event any building or improvement constructed on the subleased premises is damaged or destroyed by fire or any other casualty, regardless of the extent of such damage or destruction, Sublessee shall, within one year from the date of such damage or destruction, begin to repair, reconstruct, or replace the damaged or destroyed building or improvement and pursue the repair, reconstruction, or replacement with reasonable diligence so that the building shall be restored to substantially the condition it was in prior to the happening of the casualty; provided, however, that if commencement or completion of this requirement is prohibited by a civil commotion, acts of God, strikes, governmental restrictions or regulations, or interferences, fire or other casualty, or any other reason beyond the control of Sublessee, whether similar to any of those enumerated or not, the time for commencing or completing, or both, of the restoration: will automatically be extended for the period of each such delay. ARTICLE b. MECHANICS' LIENS #6.01. Sublessee Shall not cause or permit any mechanics' liens or other liens to be filed against the fee of the subleased premises or against Sublessee's leasehold interest in the land or any buildings or improvements on the subleased premises by reason of any work, labor, services, or material supplied or claimed to have been supplied to Sublessee or to anyone holding the subleased premises or any part of them through or under Sublessee. If such a mechanic's lien or materialman's lien is recorded against the subleased premises or any building or improvements on the premises, Sublessee shall either cause the same to be -removed or, if Sublessee in good faith desires to contest the lien, tale timely action to do so, at Sublessee's sole expense. If Sublessee contests the Heil, Sublessee agrees to indemnify Sublessor and Loll' ~ f oy the Sur, essor. harmless from n al liability or damages Occasioned ra tl lien or the 1 i en contest and shall, in the event of a judgment_ or 8 95 insurance on Buildings and improvements #7.01. At all times during the term of this sublease Sublessee shall keep all buildings and other improvements located or being constructed on the subleased premises insured against loss or damage by fire, with extended coverage endorsement of its equivalent. This insurance shall be carried by insurance companies authorized to transact business in Texas, selected by Sublessee and approved by Sublessor and the City of Paris, whose approval shall not be unreasonably withheld. The insurance shall be paid for by Sublessee and shall be in amounts not less than the replacement costs of the buildings and other improvements. Such policy or policies of insurance shall name Sublessor, Sublessee and the City of Paris as a named insured. Liability Insurance 47.02. At all times during the term of this sublease, Sublessee shall provide and keep in force during the term of this sublease, liability insurance covering Sublessor, the City of Paris and Sublessee for liability for property damage and personal injury. This insurance shall be carried by one or more insurance companies duly authorized to transact business in Texas, selected by Sublessee and approved by Sublessor, and shall name Sublessee, Sublessor and the City of Paris as named insured; and shall be paid. for by Sublessee. The -insurance provided pursuant to this section shall be in the amount of not less than $1, 000, 000 combined single limit policy for personal injury and property damage, or in the amount required by the Texas Torts Claims Act as applied to cities, whichever is greater. This insurance shall protect Sublessor, the City of Paris and Sublessee against liability to any employees or servants of Sublessee and to any other person or persons whose property damage or personal injury arises out of or in connection with the occupation, use, or condition of the leased premises. Construction Liability Insurance 17.03. Sublessee agrees to obtain and maintain (to the extent reasonably procurable) construction liability insurance at all times when demolition, excavation, or construction work is in progress on the premises. This insurance shall be carried by insurance companies authorized to transact business in the State of Texas, selected by Sublessee and approved by Sublessor and the City of Pars, c.nd shall to paid for by Sublessee. The _nsurancc shall have limit cf not less than $1,000,000 coM ned single limit 9 96 I 11 ~l e _c 1reC Oy as a- 0 c-ties. , _s _;rea7:~r, shall _or t~~_ __lessc th _ o~ Pa~_s, nd tubiessee, a s aLI as any o7: r ~rscn. cr per SublesUe-e rr,„, s grate, ca =.s u _ L Iub ty in _~v or u to any pc__c_r or prcoerL\' 1'i an y ay ar !S g liL t Y C_- excavation, or construction work on the premises. Certificates of insurance #7.04. Sublessee shall furnish Sublessor and the City of Paris with certificates of all insurance required by this article. Sublessee agrees that if it does not keep this insurance in full force and effect, Sublessor may declare this sublease, and all. rights and interest created by it, to be terminated, notwithstanding the provisions of # 11.01., below. Indemnification of Sublessor #7.05. Sublessor shall not be liable for any loss, damage, or injury of any kind or character_ to any person or property arising from any use of the subleased premises, or any part of the subleased premises, or caused by any defect in an.y building, structure, improvement, equipment, or facility on the subleased premises or caused by or arising from any act or o_nission of Sublessee, or of any of its agents, employees, licensees, or invitees, or by or from any accident, fire, or other casualty on the land, or occasioned by the failure of Sublessee to maintain the premises in safe condition. Sublessee waives all claims and demands on its behalf against S_,blessor and the City of Paris for any such loss, damage, or injury, and agrees to indemnify and hold Sublessor and the City of Paris entirely free and harmless from all liability for any such loss, damage, or injury of all other persons, and from all costs and expenses arising from any claims or demands of ether persons concerning any such Joss, damage, or injury. ARTICLE 8. TAXES Payment by Sublessee #8.01. Sublessee shall pay and discharge all taxes, general and special assessments, and other charges of every description which are levied on or assessed against the leased oremises and all interests in the leased premises and all improvements and other property on the leased premises during the term of this lease, whether belonging to Sublessor or to Sublessee. Sublessee shall pay all such La'-_es, charges, and assessments directly to the pl-,blic or_lc r charged Tilt their collection n-ot less than f fEee;. (l days before the came shall become delinquent, and Sublessee agrees 10 97 CaXeS, Ci , ,c, ,:.5~~._~,.._ .~_'..~~~SSe._ S i.~. C_`TC .r_y -ood _ d `Xpe S C64n naL(le t_rie na_i'. L"C_eS r, ni" b., rT, as Lib_esvee may 6e appropriate; cc- cS` a;:caxes, Char eS, and aSSe'SS?ler~S, and shall. l e n c, Lo cay the cOntestP_d _m0ur, , GILIs penalties and interest rn' sed, only if and when finally determined to be due. Payment by Sublessor #8.02. At any time that the payment of any item of taxes, special assessmenEs, or governmental charges which Sublessee is obligated to pay under the provisions of # 8.01. remains unpaid and contested later than fifteen (15) days before the same shall become delinquent, Sublessor may declare this sublease, and all rights and interest created by it, to be r_er_minated, pursuant to the provisions of # 11.01., below. ARTICLE 9. CONSTRUCTION BY SUBLESSEE Ownership of Building, Improvements, and Fixtures #9.01. Any and all buildings, improvements, additions, alterations, and fixtures, except furniture and trade fixtures, constructed, placed, or maintained on any part of the subleased premises during the sublease term shall be considered part of the real property of the premises and shall remain on the premises and become the property of City of Paris, Lessor at the time the buildings, improvements, additions, alterations, and fixtures are constructed, placed, or maintained on the subleased premises. Right to Remove; Improvements #9.02. Sublessee shall have the right at any time during Sublessee's occupancy of the subleased premises, oz. ::lthrr: reasonable time thereafter, to remove any and all furniture, machinery, equipment, or other trade fixtures, owned or placed by Sublessee, its sublessee or licensees, irT, under, or on the subleased premises, or acquired by Sublessee, whether before or during the sublease term, but prior to the termination of the sublease Sublessee must repair any damage to any buildings or improvements on the premises resulting from their removal. Any such items which are not removed by the termination date of the sublease shall become the property of Sublessor as of that date. ll 98 -0.03. c t! prov s ons f 9.02. c:c _ apply to any trade fixtures c other ite ~ °d upon tt pfe :I ses under 01., above. ARTICLE 10. SUBTEASE Subletting by Sublessee #10.01. Sublessee shall not assign this sublease or any interest under it, sublet the whole or any part of the subleased premises, or permit the use or occupancy of the subleased premises by any person, partnership, association, corporation or other legal entity other than Sublessee and the Sublessee's agents and employees without the prior written consent of the Sublessor in each instance in which the subletting or use or occupancy by Sublessee extends for a period of thirty (30) days or more. A subletting or use or occupancy that is less than 30 days, but of a continuing nature exceeding thirty (30) shall require the written consent of Sublessor. Sublessor's consent to a single assignment, sublease, use, or occupancy does not constitute consent to any subsequent attempted assignment or sublease, or use or occupancy by another person, partnership, association, corporation or other legal entity. ARTICLE 11. DEFAULT AND REMEDIES Termination on Default #11.01. Should Sublessee default in the performance of any covenant, condition, or agreement in this sublease, and not correct the default within fifteen (15) days after receipt of written r c t S 1 bleSSOr u de 1 e this no ice f om Sublessor O ub sS .e, Su may aY lease, and all rights and interest created by it, to be terminated. Upon Sublessor's electing to terminate, this sublease shall cease and come to an end as if the day of Sublessor's election were the day originally fixed in the sublease for its expiration. Waiver of Breach #11.02. The waiver of Sublessor of any breach of term, covenant, or condition of this Sublease shall riot be deemed to be a waiver of any other breach of that term, covenant, or condition of any other term, covenant, or condition of this Sublease regardless of when the breach has occurred. 99 r'.2 T , . i'~ -erTP. ~i. - - -iblessee c, terms, con_.it:._ons, o_ cove---r-its- of this sublease. Sublessor sera b e e nt i t o t s s s i o n ~ _ t he s u~l e a s e rd p r e se l e a ~r. e i mme ci i ~ a t e p c s _ s and sna! he entitled to reenter the premises to remove a l property and effects that Sublessee could have removed under #9 .02, without liability for damages of any kind, said claim for damages begia expressly waived. Sublessee agrees that it will not interfere with Sublessor's possession of the subleased premises in any way if Sublessor takes possession under this paragraph. ARTICLE 12. SPECIAL PROVISIONS Possession of Subleased Premises by Sublessor #12.01. (a) It is agreed between Sublessor and Sublessee that Sublessor shall have possession of the subleased premises for each year this sublease is in effect during the time Sublessor has its annual fair. Possession by Sublessor is to begin at 11:59 a.m. o'clock on the second day preceding the opening day of the fair and is to end at 11:59 a.m. o'clock on the second day subsequent to the last day of the fair. Sublessee will give Sublessor access to all buildings and other facilities on the subleased premises at the time Sublessor is entitled to possession except for areas containing the business records of Sublessee. Sublessor shall riot use the equipment located on the premises unless otherwise agreed to between the Sublessor and the owner of the equipment. During such possession, Sublessor shall be responsible for all utility use; these charges to be based upon statements received from the respective utility companies. #12.01. (b) Sublessor will, during its possession of the subleased premises under # 12.01, (a) provide indemnity of like kind as described in # 7.05 to Sublessee. Sublessee will during its possession of the Coliseum. or Livestoc~: Barn under # 12.C3, (a/ provide indemnity of like kind as described in # 7.05 to Sublessor. Advertisement Prohibition #12.02. (a) Tt is agreed between Sublessor and Sublessee that if Sublessor puts on a full rodeo during its annual fair that the annual fair shall be subsequent to the Sublessee's annual rodeo and it is further agreed that Sublessee's annual rodeo end no later than the first weekend in August of each year of this sublease. Sublessor agrees not to advertise its full rodeo prior to the end of the first weekend of each year of this sublease. Sublessor agrees not to advertise its full rodeo prior to the erid of the irst weekend of P.uaust of each year. 100 ( ) I._ -7 Yl, hat 30 ' cn n o; nnual a'r "._,1essee cha-g=_s r[1e week o _ ct illl al C Sublessor and, v ~_es ee agree to a_ter trie prov _s -enS o # _2.,_L. (a) within 1__ en of Lr11S 3g_ e.e11t. Use of Additional Premises by Sublessee #12.03. It is agreed between Sublessor and Sublessee that during the week of the annual rodeo put on by the Sublessee, that Sublessee shall have possession of the Coliseum building or Livestock Barn located on the premises of Sublessor. During such possession, Sublessee shall be responsible for all utility use; these charges to be based upon statements received from the respective utility companies. Possession by Sublessee is to begin at 11:59 a.m. o'clock on the second day preceding the opening day of the rodeo and is to end at 11:59 a.m. o'clock on the second day subsequent to the last day of the rodeo. Parking #12.04. (a) It is agreed between Sublessor and Sublessee that Sublessee shall use that area on the west side of the subleased premises for parking during the term of this sublease and any extensions subject to #12.04. (b), below. #12.04. (b) During the major events sponsored by Sublessee, Sublessee shall have use of the North parking lot of Sublessor's premises for parking subject to the _rights, duties and obligations of other sublessee of the premises controlled by Sublessor. Sublessee shall have the option to charge for parking without obligation for any of the proceeds to Sublessor, but not the parking of other subleases of the premises. #12.04. (c) Tl p i` - rrn "maj- events" as used in th1Q sublease means the annual rodeo put on by Sublessee and all others events agreed to between Sublessor and Sublessee. Any event, other_ than the annual rodeo put on by Sublessee, which is agreed to be a "major event" shall be put into writing and signed by a representative of each party to this sublease. 101 #13. 0 . A, I notices reap ired under this sublease must be given by certified mail or regisEered mail, addressed to the proper party, at the following addresses: Sublessor: Executive Director Red River Valley Fair Association, Inc. 5"10 East Center Street Paris, Texas 75460 Sublessee: President Paris Rodeo and Horse Club P. 0. Box 736 Paris, Texas 75461-0736 Either party may change the address to which notices are to be sent it by giving the other party notice of the new address in the manner provided in this section. Parties Bound #13.02. This agreement shall be binding upon, and inure to the benefit of, the parties to this sublease and their_ respective heirs, executors, administrators, legal representatives, successors, and assigns when permitted by this agreement. Texas Law to Apply #13.03. This agreement shall be construed under, and in accordance with, the laws of the State of Texas, and all obligations of the parties created by this sublease are performable in Lamar County, Texas. Legal Construction #13.04. In case any one or more of the provisions contained in this agreement shall for any reason be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision cf the agreement, and this agreement shall be construed as -Lf the invalid, illegal, or enforceable provision had never been included ~-n the agreement. 15 102 rt JJ. Tn aC;'-~...e it COPSL teS i e SC',e a is aQ7 ✓.y reeme n,~ ~n c, .S 1. Q e r s e c e s ti, r _'v y. understandings or teri or oral agreemerntc between _.:e pDa!-Eies respecting the subject matter of this agreement. Amendment #13.06. No amendment, modification, or alteration of the terms of this agreement shall be binding unless it is in writing, dated subsequent to the date of this agreement, and duly executed by the parties of this agreemen-. Rights and Remedies Cumulative #13.07. The right and remedies provided by this sublease agreement are cumulative, and the use of any one right or remedy by either party shall not preclude or waive its rights to use any or all other remedies. These rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. Attorney's Fees and Costs #13.08. If, as a result of a breach of this agreement by either party, the other party employs an attorney or attorneys to enforce its rights under this sublease, then the breaching party agrees to pay the other party the reasonable attorney's fees and costs incurred to enforce the sublease. Force Majeure #13.09. Neither Sublessor nor Sublessee shall be required to perform any term, condition, or covenant in this sublease so long as performance is delayed or prevented by force majeur_e, which shall mean acts of God, strikes, lockouts, material or labor restrictions by any governmental authority, civil riots, floods, and any other cause not reasonable within the control of Sublessor or Sublease and which by the exercise of due diligence Sublessor or Sublessee is unable, wholly or in part, to prevent or overcome. 16 103 aJe >ypprovl u i3. 11. ;'JOLWi nS - a-1 C,1 1 any of -C above, this sublease small not be effective until approval is given to enter into this sublease by the City of Paris, Texas to Sublessor as evidenced by the signature of its duly authorized representative below. Upon the execution of this sublease and approval by the City of Paris, the previous agreements between the parties hereto dated March i4, 2006, shall be canceled and of no further force or effect. Sublease Subject to Main Lease #13.12. Notwithstanding any of the above, this sublease shall be subject to all the terms, conditions and covenants that are part of the Main Lease, referred to in # 1.01., above. The undersigned Sublessor and Sublessee execute this agreement On 2011, at Paris, Lamar County, Texas. Sublessee: Sublessor: Paris Rodeo and Horse Club Red River Valley Fair Association, Inc. By: M:411 z~l 4,nja Pres den By: Va P. 0. Box 736 President Paris, Texas 75461-0736 57.0 East Center St. 4ecTexas 754.60 7/T, 7/, B y : B y Secretary retary P. 0. Box "736 570 East Center St. Paris, Texas 75461-0736 Paris, Texas 75460 17 104 .~0UNm Y. - - 1 BEFORE YE, the u: dersioneu authority, on s day perscnai appeared, WADE WHITE, President of the Red River_ Valley Fair Association, inc., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purpose and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2 011 . - - - - - Notary P c, State of Texas ~1 µFr ~ i MARRY EOLSEN Printed name: Mia,? My Commission Expires June 18, 2011 My commission expires: y ; l STATE OF TEXAS } } COUNTY OF LAMAR } BEFORE ME, the undersigned authority; on this day per_sonalLy appeared, STEVE TUCKER, Secretary of the Red River Valley Fair Association, Inc., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purpose and consideration therein expressed, and in the capacity therein stated. 01- GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2 011 . Notary PublState of Texas Printed name: My commission expires:~_t~)sk MARY E OLSEN My Commission Expires 18 June 18, 2011 fl 10 15 -Y OF LAMAR BEFORE ME, t:ie =dersigned au'--'',or1ty, on tn' c i`i _ ersonally ci~)tieared, LARR`_ Pr,Si'denT: o.. _',,e Paris +oi7eU arl(a Horse Club, known to me to be the person whhose name is Subscribed to the foregoing instrument', and acknowledged to me that he executed the same for the purpose and consideration therein expressed, and in the capacity therein stated. - 6K, GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2011. G a Notary Pub? State of Texas MARY E OLSEN My Commission Expires ry-\Py W i--, DL p-o June 18, 2011 Printed name: 4~EY7t'iFyr My commission expires: $ LCA) STATE OF TEXAS } } COUNTY OF' LAMAR } BEFORE ME, the undersigned authority, on this day personally appeared, JEAN WILLIAMS, Secretary, of Paris Rodeo and Horse Club, known to me to be the person whose name is subscribed to the Loreaoina instrument, and acknowledged to me that he executed the same for the purpose and consideration [.herein expressed, and -in, the capacity therein stat=ed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this c~ day of 2011. Notary PublState of Texas Printed name: ~w+ MARY E OLSEN My commission expi res : My Commission Expires June 18, 2011 ~hgt'ff.{e 106 2 -C L S, Iv VA LEY iT1OP`; i_ L _ C =L x J RC'urO ~r CL_J`i U 1 `ni s the day of l1 , LESSOR: CITY OF PARIS, TEXAS BY: Mayor, Paris, Texas AT'T'EST : City Clerk APPROVED AS TO FORPs: Ci-ty At+`orney 1 10'7