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20-MOTION TO APPROVE RESOLUTION AUTHORIZING A TEN YEAR AGREEMENT BETWEEN RED RIVER VALLEY FAIR ASSOCIATION & PARIS RODEO & HORSE CLUBCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 9-16-11 Council Date: Finance Gene Anderson Zp, 9-26-11 RECOMMENDED MOTION: Motion to approve a resolution authorizing a ten year agreement between the Red River Valley Fair Association (RRVFA) and the Paris Rodeo & Horse Club (PRHC). POLICY ISSUE(S): Administration BACKGROUND: The Red River `'alley Nair Association has historically subleased a portion of the fairgYOUnds to the PaYis Rodeo and Horse Club for the PRHC annual rodco. The prexrious lease expired Mav 1, 2011 and the five vear extension option was not exercised. Instead, the RRVFA is Yequesting City Council approval of a ten (10) year sublease followed by fivc y ear extension option. The reason for this request is that when the PRHC borrows monep for capital improvements at this location, the lending institution will require a lease at least as long as the note term. Other than the extended term and a new surne}' of the subleased premises, this lease agreeinent is identical to prexrious lEases. BOARD/ COMMISSION RECOMMENDATION: NONE ExxisiTS: Resolution; Sublease Agreement ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report Z Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance yTD Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: None REVIEWED AND APPROVED BY: Z Administration ❑ City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court E Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 82 DRAFT s/attorney/reswork/current/RRVF 9-26-11 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING THE GROUNDS SUBLEASE AGREEMENT 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 Paris City Council to enter into a ten (10) year grounds sublease agreement with the Paris Rodeo and Horse Club in the form shown in Exhibit "A", attached hereto; and, WHEREAS, the sublease agreement covers the rodeo arena at the Fairgrounds and provides for the Paris Rodeo and Horse Club to continue putting on their annual summer rodeo. WHEREAS, it would be in the best interests of the City and the citizens of Paris that such grounds sublease agreement be approved, and the Mayor should be authorized to acknowledge approval of said sublease by signing 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 execute all documents necessary to demonstrate the City Council's approval of the grounds sublease agreement. Section 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 26th day of September, 2011. A.J. Hashmi, M.D., Mayor I , 83 ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney I - 84 GROUNDS SUBLEASE AGREEMENT SUBLESSOR: SUBLESSEE: RED RIVER VALLEY PARIS RODEO & HORSE CLUB FAIR ASSOCIATION, INC. 85 Table of Contents Page Preamble--Parties 4 DEMISE AND DESCRIPTION OF PROPERTY 4 ARTICLE l. TERM 41.01. Term of Sublease 4 #1.02. Option to Extend Term 4 ARTICLE 2. RENT #2.01. Consideration 5 42.02. Gross Receipts Defined 5 #2.03. Statement of Gross Receipts 6 #2.04. Books and Records of Sublessee.......... 6 ARTICLE 3. USE OF PREMISES #3.01. Primary Purpose 7 43.02. Illegal Use Not Permitted 7 #3.03. Waste and Nuisance 7 ARTICLE 4. UTILITIES ARTICLE 5. REPAIRS, MAINTENANCE, AND RESTORATION 8 45.01. Lessee's Duty to Maintain and Repair.... 8 #5.02. Damage and Destruction 8 ARTICLE 6. MECHANICS' LIENS 8 ARTICLE 7. INSURANCE AND INDEMNIFICATION #7.01. Insurance on Buildings & Improvements... 9 #7.02. Liability Insurance 9 #7.03. Construction Liability Insurance........ 9 #7.04. Certificate of Insurance 10 #7.05. Indemnification of Sublessor............ 10 ARTICLE 8. TAXES #8.01. Payment by Sublessee 10 #8.02. Payment by Sublessor 10 ARTICLE 9. CONSTRUCTION BY SUBLESSEE 49.01. Ownership of Buildings, Improvements, and Fixtures 11 #9.02. Right to Remove Improvements 11 #9.03. Removal Restrictions 12 ARTICLE 10. SUBLEASE #10.01. Subletting by Sublessee 12 ARTICLE 11. DEFAULT AND REMEDIES #11.01. Termination on Default 12 #11.02. Waiver of Breach 12 #11.03. Possession after Default 13 ARTICLE 12. SPECIAL PROVISIONS #12.01. Possession of Subleased Premise by Sublessor 13 #12.02. Advertisement Prohibition 13 #12.03. Use of Additional Premises by Sublessee 14 #12.04. Parking 14 4 5 7 9 11 12 12 13 7 - - 1 86 ARTICLE 13. MISCELLANEOUS #13.01. Notices and Addresses 15 413.02. Parties Bound #13.03. Texas Law to Apply 15 #13.04. Legal Construction 15 #13.05. Prior Agreements Superseded............ 15 #13.06. Amendment 16 413.07. Rights and Remedies Cumulative......... 16 #13.08. Attorney's Fees and Costs 16 413.09. Force 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 16 20 15 - 87 SUBLEASE AGREEMENT THIS SUBLEASE is made at Paris, Texas, between RED RIVER VALLEY FAIR ASSOCIATION, INC., a Texas corporation, called Sublessor 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 being a 4.979 acre tract of land in the Reding Russell Survey, Abstract No. 786,in the City of Paris, Lamar County, Texas as further described in the survey attached hereto as Exhibit "A". ARTICLE l. TERM Terms of Sublease #1.01. The term of this sublease shall be for a period of ten years, beginning on the lst day of May, 2011 and ending on May l, 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. OPTION TO EXTEND TERM #1.02. Sublessee has the right to extend this sublease beyond the expiration date provided in #1.01. on the following terms and conditions: a. Should Sublessee fully and faithfully perform the terms and conditions of this sublease, Sublessee may extend the term of this lease for a period of five years, with the extended term to begin on the day following the expiration date 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 4 8cg 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 l, 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 to 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. RENT Consideration #2.01. Sublessee agrees to make improvement on the subleased premises to the extent of five per cent (050) of its annual gross receipts. Sublessee agrees and covenants that it will expend during each year, for such purpose, five per cent (05a) 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 (050) during any one year hereof for such purpose, such excess may be credited on the total amount to be expended by Sublessee hereunder. Gross Receipts Defined 42.02. The term "gross receipts" as used in this sublease means all sums of money received by Sublessee from all business conducted on or from the subleased premises by Sublessee and all others, whether such money be evidenced by check, credit, charge, exchange, or otherwise. a. The term "gross receipts" includes, but is not limited to, the following: 5 - 89 I. The amounts received from the sale of inerchandise 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 on 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 #2.03. 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 its gross receipts for each month during the term of this sublease and any extension of this sublease. For the purposes of this paragraph, "Each quarter" means April 15th, July 15th, October 15th and January 15th of each year, beginning May 15th, 2011. Sublessee agrees to provide its statement of gross receipts 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 supporting documents, described in the preceding paragraph at the leased premises during Sublessee's regular business hours. If, on examination of the books or records of Sublessee, a material error shall be revealed in favor of the Sublessor that results in additional gross receipts, then the reasonable costs of the examination must be paid by Sublessee to Sublessor. Otherwise, Sublessor will bear the costs of the examination. Sublessor's 6 90 right to examine the statements and supporting documents shall be limited to no more than twice each year of this sublease upon reasonable notice to Sublessee. Failure of Sublessee to report all 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 jurisdiction over 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 its expense, will comply, and will cause its officers, employees, agents, and invitees to 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 #4.01. 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. 7 - - - 91 ARTICLE 5. REPAIRS, MAINTENANCE, AND RESTORATION Lessee's Duty to Maintain and Repair #5.01. At all times during the term of this sublease, Sublessee will keep and maintain, or cause to be kept and maintained, all 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 6. 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, 8 ~ ~ . 92 Sublessee shall either cause the same to be removed or, if Sublessee in good faith desires to contest the lien, take timely action to do so, at Sublessee's sole expense. If Sublessee contests the lien, Sublessee agrees to indemnify Sublessor and hold Sublessor harmless from all liability for damages occasioned by the lien or the lien contest and shall, in the event of a judgment or foreclosure on the lien, cause the lien to be discharged and removed prior to execution of the judgment. ARTICLE 7. INSURANCE AND INDEMNIFICATION 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 #7.02. 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. 9 - 93 Construction Liability Insurance #7.03. 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 Paris, and shall be paid for by Sublessee. The insurance shall have limits of not less than $1,000,000 combined single limit policy for one accident for personal injury and property damage, or in the amount required by the Texas Torts Claims Act as applied to cities, whichever is greater, and shall protect Sublessor, the City of Paris, and Sublessee, as well as any other person or persons Sublessee may designate, against all liability for injury or damage to any person or property in any way arising out of demolition, 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 any building, structure, improvement, equipment, or facility on the subleased premises or caused by or arising from any act or omission 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 Sublessor 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 other persons concerning any such loss, damage, or injury. 10 94 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 premises 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 taxes, charges, and assessments directly to the public officer charged with their collection not less than fifteen (15) days before the same shall become delinquent, and Sublessee agrees to indemnify Sublessor and save Sublessor harmless from all such taxes, charges, and assessments. Sublessee shall have the right in good faith at its own sole cost and expense (in its own name or in the name of Sublessor, or both, as Sublessee may determine appropriate) to contest any such taxes, charges, and assessments, and shall be obligated to pay the contested amount, plus any penalties and interest imposed, 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 assessments, 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 terminated, 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. 11 9 J Right to Remove Improvements #9.02. Sublessee shall have the right at any time during Sublessee's occupancy of the subleased premises, or within a reasonable time thereafter, to remove any and all furniture, machinery, equipment, or other trade fixtures, owned or placed by Sublessee, its sublessee or licensees, in, 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. Removal Restriction #9.03. However, the provisions of # 9.02. do not apply to any trade fixtures or other items placed upon the premises under # 2.01., above. ARTICLE 10. SUBLEASE 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 411.01. Should covenant, condition, the default within Sublessee default or agreement in this fifteen (15) days in the performance of any sublease, and not correct after receipt of written 12 96 notice from Sublessor to Sublessee, Sublessor may declare this 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 not 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. Possession after Termination # 11.03. In the event of termination by Sublessee of the terms, conditions, or covenants of this sublease, Sublessor shall be entitled to the immediate possession of the subleased premises and shall be entitled to reenter the premises to remove all property and effects that Sublessee could have removed under #9 .02, without liability for damages of any kind, said claim for damages being 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 not 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. 13 97 #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 Livestock Barn under # 12.03, (a) provide indemnity of like kind as described in # 7.05 to Sublessor. Advertisement Prohibition #12.02. (a) It 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 end of the first weekend of August of each year. (b) In the event that Sublessor changes the week of its annual fair or Sublessee changes the week of its annual rodeo, Sublessor and Sublessee agree to alter the provisions of # 12.02. (a) within the intent of this agreement. 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 412.04. (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 14 98 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. 412.04. 8 The term "major events" as used in this 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. ARTICLE 13. MISCELLANEOUS Notices and Addresses #13.01. All notices required under this sublease must be given by certified mail or registered mail, addressed to the proper party, at the following addresses: Sublessor: Executive Director Red River Valley Fair Association, Inc. 570 East Center Street Paris, Texas 75460 Sublessee: President Paris Rodeo and Horse Club P. O. 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 15 99 #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 of the agreement, and this agreement shall be construed as if the invalid, illegal, or enforceable provision had never been included in the agreement. Prior Agreements Superseded #13.05. This agreement constitutes the sole and only agreement of the parties to the agreement and supersedes any prior understandings or written or oral agreements between the parties 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 agreement. 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. 16 100 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 majeure, 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. Time of Essence #13.10. Time is of the essence of this agreement. Sublease Approval #13.11. Notwithstanding any of the above, this sublease shall 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 14,_ 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 President By: P. O. Box 736 President Paris, Texas 75461-0736 570 East Center St. Paris, Texas 75460 By By: Secretary Secretary P. O. Box 736 570 East Center St. Paris, Texas 75461-0736 Paris, Texas 75460 17 101 STATE OF TEXAS } } COUNTY OF LAMAR } ACKNOWLEDGEMENTS BEFORE ME, the undersigned authority, on this day personally appeared, 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 , 2011. day of Notary Public, State of Texas Printed name: My commission expires: STATE OF TEXAS } } COUNTY OF LAMAR } BEFORE ME, the undersigned authority, on this day personally appeared, , 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. 18 . - 102 GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of , 2011. Notary Public, State of Texas Printed name: My commission expires: STATE OF TEXAS } } COUNTY OF LAMAR } BEFORE ME, the undersigned authority, on this day personally appeared, , President of the Paris Rodeo and Horse Club, 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 , 2011. Notary Public, State of Texas Printed name: My commission expires: 19 day of - 1 103 STATE OF TEXAS } } COUNTY OF LAMAR } BEFORE ME, the undersigned authority, on this day personally appeared, , Secretary, of Paris Rodeo and Horse Club, 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 , 2011. Notary Public, State of Texas Printed name: My commission expires: day of The foregoing sublease is approved to be entered into between RED RIVER VALLEY FAIR ASSOCIATION, INC. and PARIS RODEO AND HORSE CLUB on this the day of , 2011. LESSOR: CITY OF PARIS, TEXAS BY: A.J. Hashmi, M.D.,Mayor Janice Ellis, City Clerk APPROVED AS TO FORM: w. xenL mcllyar, uity ALLOrney 20 - 104