Loading...
HomeMy WebLinkAboutStadium License Lease and Service Agreement R)ECE IED CL R6N STADIUM LICENSE, LEASE AND SERVICE AGREEMENT By and Between TAKE ME OUT TO THE BALL GAME, LIMITED LIABILITY CONWAY and CITY OF LANSING (2014) STADIUM LICENSE, LEASE AND SERVICE AGREEMENT TABLE OF CONTENTS Page ARTICLE I. RECITALS...............................................................................................................................1 ARTICLE II. DEFINITIONS.........................................................................................................................2 A.. "Banquet Center"................................................................................................................2 :Broadcast Rights ...............................................................................................................2 B. "City Events" ................................................................ ...2 ................................................... C. "City Luxury Suites" .........................................................................................................12 D. "Clubhouse" ....................................................................................................................3 E. "Clubhouse Paid Admission Tickets'' ...............................................................................3 F. "Clubhouse Paid Admission Ticket Revenue"or"CTR....................................................3 G. "Complimentary Admission(s).......................................................... ............... ....4 H. "Comprehensive Development Agreement"or"CDA.. ....................................................4 .................................................................................4 J. "Developer" ....................................................................................................................5 K. "Developer Units" ..............................................................................................................5 L. "Environmental Laws..........................................................................................................5 M. "Expandable Luxury Suites" ..............................................................................................5 N. "Food and Beverage Concessions".....................................................................................6 O. "Food and Beverage Concessions Equipment"..................................................................6 P. "Game Promotion"........................................................................................... ............6 Q. "Hazardous Materials"............................................................. ..... R. "Host Suites"......................................................................................... S. "Luxury Suites"........................................................................................... T. "LEPFA.. ...................................................................................7 U. "Master Closing"..............................................................................I............... V. "Master Schedule" .................................................................................................... W. "Midwest League"......-....................I.........I'll............ X. "Minimum Guaranteed Payment"....................................................................I....I............8 Y. "MSU".................................................................................................................................8 Z. "Mutually Sponsored Event"..............................................................................................8 A.A. "Mutually Sponsored Event Net Profit"or"MSENP.. ......................................................8 AB. "Naming Rights Suite" .......................................................................................................8 AC. "National Association" ......................................................................................................9 AD. "Novelties and Souvenirs................................................................ .....9 AE. "Outfield Development Parcel"..........................................................................................9 AF. "Outfield Development Project".........................................................................................9 AG. "Paid Admission Tickets"....................................................................... i Page AH. "Permanently Affixed Stadium Signage.............................................................................9 Al. "Plans and Specifications"................................................................................................10 AJ. "Professional Baseball Agreement"..................................................................................10 AK. "Regular Season".................................................................................. "......................10 AL. "Renovation Funds"..........................................................................................................10 AM. "Scoreboard Advertising".................................................................................................10 AN. "Stadium"..........................................................................................................................10 AO. "Stadium Event" ............................................... ...I I AR "Stadium Improvements" .................................................................................................I I AQ. "Stadium Services"................................................................... ..1 I AR. "Stadium Souvenir Stores"...............................................................................................12 AS. "Stadium Units"................................................ ...12 AT. "Suiteholder"...................................................................................... ..12 AU. "TMO Home Baseball Game"..........................................................................................13 AV. "TMO Luxury Suites"......................................... AW. "TMO Special Event..................................................................... ...13 ................................ AX. "TMO Special Events Novelties and Souvenirs..............................................................13 AY. "Utilities" ..........................................................................................................................13 ARTICLE III. TERM AND TERMINATION.............................................................................................13 A. Term of Agreement and Termination of Previous Stadium License, Lease and Service Agreement dated July 10, 1995 ....................................................................13 B. Termination Of Agreement...............................................................................................14 1. Termination by the City........................................................................................14 ARTICLE IV, CITY'S OBLIGATIONS............................................................................................................14 A. Stadium.................................................................... .....14 1. Capital Improvements to the Stadium..................................................................15 B. Parking .........................................................................................................16 1. TMO Home Baseball Game and TMO Special Event Parking...........................16 2. Premium Parking Lots..........................................................................................16 3. Weekday Game Parking.......................................................................................17 4. TMO Parking...........................................................................................I......I.....18 5. Stadium Souvenir Store Parking..........................................................................18 6. TMO Banquet Center and TMO Special Event Parking.....................................19 ii Pate 7. TMO Home Baseball Game Bus Parking........................................................19 8. All Parking...................................................................... ...............19 ....................... C. Parking Maintenance........................................................................................................20 D. Stadium Maintenance........................................................................................................20 E. Security ..................................................................................................................21 1. Stadium Security..........................................................................................................21 2. City's Right to Eject.....................................................................................................21 F. Food and Beverage Concessions Equipment...................................................................21 G. Monthly Walk-throughs....................................................................................................22 ARTICLE V. TMO'S OBLIGATIONS............................................................................................................22 A. TMO Home Baseball Games............................................................................................22 B. Stadium Services...............................................................................................................22 1. At TMO Home Baseball Games and TMO Special Events................................23 2. At City Events ......................................................................................................23 3. Field Preparation and Field and Surrounding Grounds Maintenance.................23 4. Stadium Operations Plan......................................................................................24 5. Scoreboard............................................................................................................24 ARTICLE VI. CONCESSIONS..........................................................................................................................25 A. Concessions Manager.......................................................................................................25 B. Exclusivity........................................................................................ ....25 C. Menu Approval.................................................... ..........26 ................................................... D. Performance and Notice....................................................................................................26 E. Compliance.................................................... .....27 ARTICLE VII. NAMINGRIGHTS.....................................................................................................................27 A. Stadium Naming Rights....................................................................................................27 BStadium Name...................................................................................................................28 C. Naming Rights Suite.........................................................................................................28 D. Field Naming Rights.........................................................................................................28 E. Field Name........................................................................................................................29 F. Naming Rights Suite ........................................................................................................29 ill ARTICLE VIII. Page STADIUMUSE...........................................................................................................................29 A. TMO's Rights and Obligations.........................................................................................29 B. The City's Rights and Obligations....................................................................................29 1. Scope.....................................................................................................................30 2. Ticketing...............................................................................................................30 C. TMO Home Baseball Game Promotion Tickets.................. D. Suites ......................................................................... .....31 ............. ........................ 1. TMO Luxury Suites..............................................................................................31 2. Clubhouse.............................................................................................................32 3. Expandable Luxury Suites....................................................................................32 4. Host Suite..............................................................................................................33 E. Access for TMO Training......................................................................................... ...33 F. Administrative Offices......................................................................................................33 G. Stadium Souvenir Stores and Box Offices.......................................................................33 H. The City's Rights and Obligations....................................................................................34 1. City Events........................................................................................................................34 1. Scope.....................................................................................................................34 2. Ticketing...............................................................................................................35 J. Suites ...............................................................................................................................35 1. Clubhouse.............................................................................................................35 2. TMO Luxury Suites..............................................................................................35 3. Expandable Luxury Suites....................................................................................35 4. Host Suite..............................................................................................................36 K. Message Centers ......................................................................................... ...............36 L. Mutually Sponsored Events..............................................................................................36 1. Scope.....................................................................................................................36 2. Scheduling. ........................................... ....... ............37 3. City's Rights and Obligations...............................................................................37 4. TMO Rights and Obligations...............................................................................37 5. Best Practices........................................................................................................37 6. No Agency............................................................................................................37 7 Sponsorship of Mutually Sponsored Events........................................................37 M. Banquet Center..................................................................................................................38 1. Use During Stadium Events.................................................................................38 2. Use During All Non-Stadium Events...................................................................38 iv ARTICLE IX. Page SCHEDULING............................................................................................................................39 A. Proposed TMO Schedule..................................................................................................39 B. Approved TMO Schedule.................................................................................................40 C. City Selection....................................................................................................................40 D. TMO Special Event Selection...........................................................................................40 E. Remaining Dates...............................................................................................................40 F. Mutually Sponsored Events..............................................................................................41 ARTICLE X. MARKETING............................................................................................................................41 ARTICLE XI. ADVERTISING...........................................................................................................................41 A. TMO's Advertising Rights and Responsibilities..............................................................41 1. Permanently Affixed Stadium Signage and Scoreboard Advertising..................41 2. Further Advertising at TMO Home Baseball Games and TMO Special Events.42 B. The City's Advertising Rights and Responsibilities.........................................................43 1. Permanently Affixed Stadium Signage................................................................43 2. Advertising at City Events............... 3. Advertising at TMO Events.................................................................................43 ARTICLE XII. BROADCAST RIGHTS.............................................................................................................44 A. TMO's Broadcast Rights...................................................................................................44 B. City's Broadcast Rights.....................................................................................................44 ARTICLE XIII. UTILIITES.............................................................................................................................44 v ARTICLE XIV. Page FINANCIAL TERMS.................................................................................................................44 A. TMO's Rights and Obligations .........................................................................................45 1. License Fee...........................................................................................................45 2. TMO Special Event Fees......................................................................................45 3. Luxury Suite Sales................................................................................................46 4. City Event Concession.........................................................................................47 5. Remainder.............................................................................................................47 6. Mutually Sponsored Events..................................................................................47 7. Minimum Guaranteed Payment...........................................................................48 8. Audit of Record....................................................................................................49 B. City's Rights and Obligations.................................................. ........ ....50 .......... .................... 1. Stadium Services at City Events ..........................................................................50 2. Remainder.............................................................................................................50 ARTICLE XV. EQUIPMENT..............................................................................................................................50 A. TMO's Obligations............................................................................................................50 B. City's Obligations..............................................................................................................51 ARTICLE XVI. COVENANTS ........................................................................................................................51 A. TMO's Covenants..............................................................................................................51 1. Taxes and Encumbrances.....................................................................................51 2. TMO Home Baseball Games..................................... ...52 ....................................... 3. Membership in the Midwest League and National Association..........................52 4. Covenant Not to Transfer Franchise....................................................................52 5. Equal Employment Opportunity and Employment of Lansing Residents..........53 6. Stadium Name......................................................................................................53 7. Use of Matters Subject to Copyright....................................................................53 8. Operation of Stadium Souvenir Stores.................................................................53 9. Prohibition Against Dangerous Materials and Substances..................................53 B. City's Covenants................................................................................................................54 1. Stadium Compliance............................................................................................54 2. Environmental Indemnification............................................................................54 vi ARTICLE XVII. Page INDEMNIFICATION AND INSURANCE.........................................................................55 A. Indemnification.................................................................................................................55 1. Indemnification of the City by TMO.................... 2. Indemnification of TMO by the City ...................................................... B. Insurance Policies..............................................................................................................55 1. Insurance Required of TMO ................................................................................55 2. Insurance Required of the City.............................................................................56 ARTICLE XVIII. DESTRUCTIONOF STADIUM..........................................................................................56 A. Partial Destruction.............................................................................................................56 B. Reduction in Payment.......................................................................................................57 C. Assistance of the City in Locating a Temporary or Permanent Alternate Facility..........57 D. Development of Outfiled Parcel and Stadium Improvements.........................................57 ARTICLE XIX. CONDEMNATION....................................................................................................................58 ARTICLE XX. FORCEMAJEURE....................................................................................................................58 ARTICLE XXI. REQUISITE ALCOHOL PERMITS.......................................................................................59 ARTICLE XXII. ASSIGNABILITY AND TRANSFERABILITY.....................................................................59 vii ARTICLE XXIII. Page TERMINATION UPON DEFAULT........................................................................................60 ARTICLE XXIV. DEVELOPMENT OF THE OUTFIELD DEVELOPMENT PARCEL AND STADIUM RENOVATIONS......................................................................................60 A. Redevelopment of the Outfield Development Parcel .......................................................60 B. Implementation of Stadium Improvements........................................................................61 C. Stadium Improvements ......................................................................................................61 D. Substantial Completion of Stadium Improvements...........................................................61 E. Coordination of Efforts.......................................................................................................61 F. Default, Breach, or Termination of CDA.................................................... 1. Default by Developer..............................................................................................61 2. Default by TMO......................................................................................................62 G. Termination of CDA prior to Master Closing........................... ........63 H. Delay of Outfield Project.................................................................................•---..............63 I. CDA Rights and Remedies..................................................................................................63 ARTICLE XXV MISCELLANEOUS MISCELLANEOUS ..............................................................................................................63 A. Anti-Discrimination..........................................................................................................63 B. Governing Law .................................................................................................................64 C. Entire Agreement..............................................................................................................64 D. Authority...........................................................................................................................64 E. Costs and Attorney Fees...................................................................................................64 F. Mutual Dependency and Severability...............................................................................64 G. Notices and Addresses......................................................................................................65 H. Amendment,Modification,or Alteration.........................................................................65 I. Rights and Remedies Cumulative.....................................................................................65 J. The Essence.......................................................................................................................66 K. Counterparts......................................................................................................................66 L. Headings Only for Reference ...........................................................................................66 M. Valid Illinois Limited Liability Company........................................................................66 N. Prohibition Against Food and Beverage Being Brought Into the Stadium......................66 viii O. Status of Parties.................................................................................................................66 P. Waiver...............................................................................................................................66 Q. Improvements....................................................................................................................67 R. Waste or Nuisance............................................................................................................67 S. Binding Effect...................................................................................................................67 T. References to the City.......................................................................................................67 U. Exhibits..............................................................................................................................67 V. TMO's Property Loss and Damage...................................................................................67 W. Employee Status................................................................................................................67 X.. Judicial Relief In The Event Of Termination Actions......................................................67 Y. Property Remaining in the Stadium After Termination/Expiration of the Agreement 68 Z. Dispute Resolution Review Board....................................................................................68 1. Review Board.......................................................................................................68 2. Neutral Representative Compensation.................................................................69 3. Time and Location................................................................................................69 4. Issues Presented....................................................................................................69 5. Decision has no Binding Effect............................................................................69 AA. Release................................................................ ................. EXHIBITS: EXHIBIT A: TMO MAINTENANCE LIST EXHIBIT B: STADIUM OPERATION PLAN EXHIBIT C: TMO PROVIDED EQUIPMENT EXHIBIT D: CITY PROVIDED EQUIPMENT EXHIBIT E: OUTFIELD DEVELOPMENT PARCEL EXHIBIT F: PARKING LOTS ix STADIUM LICENSE,LEASE AND SERVICE AGREEMENT This Stadium License, Lease and Service Agreement ("Agreement") is made and entered into this day of , 2014, by and between Take Me Out to the Ballgame Limited Liability Company, a limited liability company organized and existing under the laws of the State of Illinois ("TMO"), and the City of Lansing, a municipal corporation organized and existing under the laws of the State of Michigan (the "City") (TMO and the City shall be referred to herein collectively as the"Parties," or singularly as "Party"), ARTICLE I. RECITALS TMO owns a class Single "A" baseball club (the "Club") in the Midwest League of Professional Baseball Clubs, Inc. (the "Midwest League"); and TMO desires to keep its location for the playing of Club baseball games in Lansing, Michigan in connection with its franchise in the Midwest League; and TMO and the City desire to terminate the current Stadium License, Lease, and Service Agreement executed on October 24, 2005, and all amendments thereto, and enter into a new Stadium License, Lease, and Service Agreement to cause TMO and the Club to play its home baseball games in the City pursuant to the terms and conditions of this Agreement through the year 2034; and The City intends to license the use of the Stadium to TMO for certain portions of the year under the terms and conditions of this Agreement. I NOW THEREFORE, for and in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt of which is mutually acknowledged, TMO and the City agree as follows: ARTICLE H. DEFINITIONS As used in this Agreement, the following terms shall mean: A. "Banquet Center" shall mean dedicated indoor event space in the leftfield area of the Stadium, as set forth more specifically in the CDA an ancillary documents, containing a maximum seating capacity of one hundred and fifty(150)on the second floor. B. "Broadcast Rights" shall mean the exclusive worldwide right, on a live or delayed basis, to produce and distribute programming by means of the transmission or retransmission of electronic signals by any manner or means now known or hereafter devised including, without limitation, over-the-air VHF and UHF signals, cable (basic, premium and pay- per-view), multi-channel distribution systems, wire, fiber, microwave, satellite, master antenna and direct broadcast satellite, as well as recorded visual images with or without sound, including, but not limited to,photographs, films, videotapes and cartridges. C. "City Events" shall mean the following events, activities or programs held at the Stadium: i) Diamond Classic (all rounds) ii) Triple Crown sports iii) MSU varsity baseball games, except a single game scheduled between the Club and MSU each year (commonly known as the "Crosstown Showdown"). iv) Homerun for Hope. 2 v) Michigan Mile. vi) Kidney Walk. vii) Any non-profit, charity, or City department or agency that desires to have an event held on the field as scheduled in Article IX(field events only). vii) Events scheduled through LEPFA and the Greater Lansing Convention and Visitors Bureau which are designated as community events and scheduled more than fifteen(15) months prior to the event date). D. "Clubhouse" shall mean the single space containing seating capacity not to exceed sixty persons outdoors and seventy three persons indoors (or as otherwise established by the Lansing Fire Marshall), and containing a single full service bar. E. "Clubhouse Paid Admission Tickets" shall mean the right granted in consideration for monetary remuneration to any person to enter the Clubhouse on the day of a TMO Home Baseball Game, whether or not that right is exercised. It does NOT include Paid Admission Tickets. Clubhouse Paid Admission Tickets may be sold separately or in conjunction with Paid Admission Tickets in packages or otherwise. Clubhouse Paid Admission Tickets may be sold on the same ticket (the physical ticket) as a Paid Admission Ticket, as reflected in the price of the ticket. F. "Clubhouse Paid Admission Ticket Revenue" or "CTR" shall mean gross revenue consisting exclusively of revenue generated from the sale of Clubhouse Paid Admission Tickets. CTR shall NOT include the gross revenue attributable to the Paid Admission Ticket. For purposes of determining CTR, the Parties will use the average price of Paid Admission Tickets. 3 G. "Complimentary Admission(s)" shall mean the right granted to any person to enter the Stadium on the day of a TMO Home Baseball Game for which no monetary remuneration is given. Complimentary Admission(s) shall include, but not be limited to, press passes, staff passes, league passes, player passes and complimentary tickets, as well as the right of access granted to TMO employees and personnel. Complimentary Admission(s) shall not include the right to enter the Stadium on the day of a TMO Home Baseball Game pursuant to a Paid Admission Ticket. H. "Comprehensive Development Agreement" or "CDA" shall mean the agreement titled "Comprehensive Development Agreement," entered into between the City, Developer, and TMO, and fully executed on the same day as this Agreement. I. "DGR" shall mean the designated gross revenue consisting exclusively of revenue generated from the following sources, less i) any state sales tax paid by TMO on such revenue; and ii)the actual cost to TMO of any Game Promotion: 1. Sale of Food and Beverage Concessions at TMO Home Baseball Games; 2. Sale of Paid Admission Tickets; 3. Rental of the Expandable Luxury Suites for use at TMO Home Baseball Games; 4. Sale of all Novelties and Souvenirs, both at the Stadium during TMO Home Baseball Games and at the Stadium Souvenir Stores at any time during the term of this Agreement, excluding internet sales; and 4 5. Advertising revenue generated from all sources at the Stadium or on the Outfield Development Parcel during the day of TMO Home Baseball Games. 6. All Banquet Center revenue including rental, leasing, licensing, advertising, tickets, and food and beverages sold at any time of the year. DGR shall NOT include MSENP, or CTR, which are defined separately in this Agreement. J. "Developer" shall mean that person or entity as defined in the CDA. K. "Developer Units" shall mean those condominium units in the Outfield Development Parcel which are owned by the Developer, as described more specifically in the Condominium Documents as defined in the CDA and agreed to at Master Closing. L. "Environmental Laws" shall mean all applicable environmental laws (whether statutory, common law, or otherwise), rules, regulations, orders, permits, licenses, ordinances, judgments and decrees of all governmental authorities (whether federal, state, local or otherwise), including, without limitation, all laws regarding public health or welfare, environmental protection, water and air pollution, composition of products, underground storage tanks, Hazardous Materials, occupational health and safety, and/or nuisance, trespass, and negligence. M. "Expandable Luxury Suites" shall mean those five (5) Luxury Suites that are separated by nonpermanent wall partitions so that each suite may be rented separately or in combination with other such suites. 5 N. "Food and Beverage Concessions" shall mean all food and beverage (both alcoholic and non-alcoholic) products and services required or appropriate for, and sold or provided at, any and all Stadium Events, whether through fixed or portable stands, machines or vendors, including but not limited to, dining, Luxury Suite waitperson service, catering, concessions vending, vending machines, roving vendors, snack bars and any other food or beverages served at the Stadium. O. "Food and Beverage Concessions Equipment" shall mean equipment required or appropriate to store, prepare, display, service, distribute and sell food and beverage concessions at the Stadium. The Parties understand and agree that the Food and Beverage Concessions Equipment shall be consistent with the original equipment in the stadium and include equipment similar to that found in minor league baseball facilities similar in quality to the Stadium, including but not limited to, equipment related to preparing grilled food. "Fixed" Food and Beverage Concessions Equipment shall be that equipment which is permanently in the stands. "Portable" Food and Beverage Concessions Equipment shall be that equipment which is located in the concourse. "Small" Food and Beverage Concessions Equipment shall include items such as smallwear, kitchenware, silverware, cheese dispensers, condiment dispensers,pots and pans, and any other like portable equipment used to dispense food/beverages that are not part of the original agreement. P. "Game Promotion" shall mean any attraction, performance, exhibition or event that is conducted at or around the Stadium immediately before, during or immediately after a TMO Home Baseball Game and that is designed to increase attendance at such games. The Parties agree that Game Promotions shall include but not be limited to fireworks, musical groups, baseball related contests, costumed characters, give-a-way items and other similar 6 attractions. TMO further agrees to provide to the City, at TMO's earliest opportunity, notice of its intent to employ such Game Promotion and any costs related thereto. Q. "Hazardous Materials" shall mean any hazardous or toxic wastes, pollutants or contaminants, substances or materials, including, but not limited to any radioactive substances, hydrocarbons, industrial solvents, flammables or explosives, waste or used oil, any "toxic, hazardous or contaminated substance" prohibited, limited or regulated under the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. subsections 9601 et seq. ("CERCLA"), or the Resources Conservation and Recovery Act, as amended, 42 U.S.C. subsections 6901, et seq., or in the United States Department of Transportation Hazardous Materials Table, as amended, 49 C.F.R. 172,101, or under any applicable federal, state or local statutes, regulations and ordinances, and any other substances or material which could presently or at any time in the future cause a detriment to or impair the value or beneficial use of the Stadium or constitute or cause a health, safety or environmental hazard on or off the Stadium or to any person who may enter the Stadium or surrounding property or which may require remediation at the behest of any governmental authority. R. "Host Suites" shall mean one (1) TMO suite and one (1) City suite, more specifically described in the Plans and Specifications. S. "LEPFA" shall mean the Lansing Public Facilities and Entertainment Authority. T. "Luxury Suites" shall mean those eighteen(18) suites each having a seating capacity of ten(10)persons outdoors and each containing a wet bar. The Luxury Suites include all suites except the Host Suites and Clubhouse. 7 U. "Master Closing" shall mean that term as defined in the CDA. V. "Master Schedule" shall mean the master development, construction and phasing for Stadium Improvements and the Outfield Development Project schedule adopted pursuant to the CDA. W.. "Midwest League" shall mean the Midwest League of Professional Baseball Clubs,Inc. X. "Minimum Guaranteed Payment" shall mean, and be equal to Three Hundred Fifty Thousand and 001100 Dollars($350.000.00)annually. Y. "MSU" shall mean Michigan State University. Z. "Mutually Sponsored Event" shall mean an event co-sponsored by TMO and the City and specifically excludes City Events, TMO Special Events, and TMO Home Baseball Games. AA. "Mutually Sponsored Event Net Profit" or"MSENP" shall mean all gross revenue generated at or because of a Mutually Sponsored Event, including but not limited to all admission tickets for the Stadium or any part therein, Broadcast Rights,Novelties and Souvenirs, advertising revenue, sponsorship revenue, and Food and Beverage Concessions, less actual taxes paid, actual labor costs, actual food and beverage costs, actual equipment rental fees, actual material costs, and actual entertainment fees, all of which are attributable to the Mutually Sponsored Event. AB. "Naming Rights Suite" shall mean the suite(s) occupied by the parties which have purchased the Stadium Naming Rights or the Field Naming Rights. 8 AC. "National Association" shall mean the National Association of Professional Baseball Leagues,Inc. of which the Midwest League is a member. AD. "Novelties and Souvenirs" shall mean any product, item, device, souvenir, novelty, supply or other personal property. Novelties and Souvenirs shall include but not be limited to, baseball caps and hats, bats, baseball shirts, baseballs, baseball cards, baseball gloves, baseball scorecards, programs, souvenir books and other related products which bear, contain or display the logo, trademark, trade name or design of the Club, any Major League Baseball club, any team of any league which is a member of the National Association or any other professional baseball team. Novelties and Souvenirs shall specifically exclude TMO Special Events Novelties and Souvenirs as defined below. AE. "Outfield Development Parcel" shall mean that portion of the Stadium located between the outfield wall and the northern fence of the Stadium, and more particularly described in Exhibit F. AF. "Outfield Development Project" shall mean that term as defined and described in the CDA, and including both Stadium Units and Developer Units as defined therein. AG. "Paid Admission Tickets" shall mean the right granted in consideration for monetary remuneration to any person to enter the Stadium through the Stadium's turnstiles on the day of a TMO Home Baseball Game,whether or not that right is exercised. AH. "Permanently Affixed Stadium Signage" shall mean all advertising signage at the Stadium whether flat, backlighted or otherwise, that is permanently affixed to any interior portion of the Stadium including, but not limited to, the outfield fence(s), the concourse, the dugouts, and on or attached to the structure which is constructed within the Outfield Development 9 Parcel, whether a Stadium Unit or Developer Unit. Permanently Affixed Stadium Signage shall specifically exclude only Scoreboard Advertising. Al. "Plans and Specifications" shall mean the final plans and specifications used for the construction and build-out of the Stadium, specifically describing the design of the Stadium and all included amenities, as modified or renovated from time to time. AJ. "Professional Baseball Agreement" shall mean and refer to that certain Professional Baseball Agreement, and all of its attachments, entered into by and between the National League of Professional Baseball Clubs, Inc., the American League of Professional Baseball Clubs, Inc. and the National Association, as such Professional Baseball Agreement may be amended from time to time. AK. "Regular Season" shall mean those professional baseball games that are played in any calendar year by and between Midwest League franchise members or members of any successor to the Midwest League pursuant to scheduling by and at the direction of the Midwest League or any successor to the Midwest League excluding pre-season, spring- training, exhibition, all-star,post-season or playoff games. AL. "Renovation Funds" shall mean the funds as defined more particularly in the CDA. AM. "Scoreboard Advertising" shall mean any and all advertising affixed to or displayed on the Stadium scoreboard, including video and message center advertising. AN. "Stadium" shall mean the minor league baseball stadium located in the City of Lansing at the north side of Michigan Avenue between Cedar and Larch streets, and its playing field. Stadium shall include only the structure and Stadium units within the perimeter of the walls of the Stadium and field or berm fences and shall not include contiguous parking and/or real 10 property upon which the Stadium does not sit, or the Developer Units, as described in the as- built Plans and Specifications. AO. "Stadium Event" shall mean any TMO Home Baseball Game, TMO Special Event, City Event, and/or Mutually Sponsored Event. AP. "Stadium Improvements"shall mean that term as defined in the CDA. AQ. "Stadium Services" shall mean and consist of the following: 1. Facility Services. The operation and staffing of the Stadium scoreboard, the public address system, the box office, security within the Stadium necessary to assure the reasonable safety of attendees, all ticket booths and ushering services, first-aid room, and the opening and closing of the Stadium, and the operation of all Stadium facilities at all Stadium Events. 2. Field Preparation. Field preparation in advance of baseball games which shall include, but not be limited to, lining the field, preparation of the unsodded areas of the field, installation of bases, restoration of the field surface as required, and such other services needed to fully prepare the field for baseball games and Stadium Events. 3. Field and Surrounding Grounds Maintenance. Shall include, but not be limited to, maintenance of the playing field and interior landscaped areas of the Stadium, which maintenance shall include periodic mowing, watering, fertilizing and other chemical treatments required to maintain the field at professional stadium quality and the exterior grounds in an attractive condition, specialized turf care as required, such as aeration and other treatments which are required to maintain the quality of the field I as defined herein, recycling requirements, and the maintenance of all unsodded areas of the field. 4. Janitorial Services. The cleaning and maintenance of the interior portions of the Stadium during and after all Stadium Events, including the stocking of all restrooms with paper products as required prior to such events, the pick up and disposal of all trash collected from such areas immediately after such events, and any necessary clean-up of trash and debris from public areas within and immediately surrounding the Stadium prior to, and not to interfere with, subsequent events. All janitorial services provided to the Stadium shall include all action necessary to maintain the areas in a clean and attractive manner and in compliance with all legal requirements, including those related to recycling. 5. Pre-Stadium Event Preparation. The preparation of the Stadium for any Stadium Event as may be required, including, but not limited to, conversion of the playing field for other athletic events, installation of any supplemental seating equipment, installation of stage or platform equipment and/or temporary lighting that may be required for the Stadium AR. "Stadium Souvenir Stores" shall mean those stores located within the Stadium. One such Stadium Souvenir Store shall have public access from outside the Stadium. AS. "Stadium Units" shall mean those condominium units in the Outfield Development Parcel which are owned by the City of Lansing, as described more specifically in the Condominium Documents as defined in the CDA and agreed to at Master Closing. AT. "Suiteholder" shall mean that third party patron that leases, licenses or rents the use of a Luxury Suite. 12 AU. "TMO Home Baseball Game" shall mean home games of the Club, as the phrase is used throughout this Agreement, and shall mean all those baseball games at which the Club is a participant, including pre-season, exhibition, regular season, post-season and play-off, and postponed or rescheduled games and other games arranged, approved and regularly scheduled by the Midwest League, its successors or assigns and scheduled to be played in the territory for which the Club holds a franchise of the Midwest League, its successors or assigns, except that any such game or games the playing of which in the Stadium is excused under other provisions of this Agreement shall not be deemed a home game or games. AV. "TMO Luxury Suites" shall mean those eleven (11) Luxury Suites that are not Host Suites, the Naming Rights Suites(if any),Expandable Luxury Suites, or the Clubhouse. AW. "TMO Special Event" shall mean any event that is scheduled by TMO pursuant to Article IX(D) herein and conducted at the Stadium, that is not a City or a Mutually Sponsored . This specifically excludes events scheduled in the Banquet Center. AX. "TMO Special Event Novelties and Souvenirs" shall mean any product, item, device, souvenir, novelty, supply or other property directly related to any TMO Special Event. AY. "Utilities" shall mean all electric, gas,sewage, and water services utilized at the Stadium. ARTICLE 111. TERM AND TERMINATION A. Term Of Agreement and Termination of Previous Stadium License, Lease, and Service Agreement executed October 24, 2005. The current Stadium License, Lease, and Service Agreement, as amended, shall continue until and terminate on January 1, 2015, at 12:00 13 AM. This new agreement will commence thereafter and run for a term of 20 years, expiring at December 31, 2034, at 11:59 PM. B. Termination Of Agreement. 1. Termination by the City. Except as additionally provided or qualified in Article XXIII and Article XX, and notwithstanding Paragraph A above, the City shall have the right to terminate this Agreement by providing written notice to TMO at any time if: a. TMO loses the franchise granted to it by the Midwest League and does not within ninety(90)days acquire another minor league baseball franchise; b. The Midwest League dissolves and TMO does not, within ninety (90) days, acquire another minor league franchise acceptable to the City; or C. TMO fails to conduct fifty-five (55) Regular Season TMO Home Baseball Games during any calendar year. ARTICLE IV. CITY'S OBLIGATIONS In consideration of the covenants,terms, and conditions set forth in this Agreement,the City and TMO agree as follows: A. Stadium. 1. Plans and Specifications and Improvements. TMO agrees that the City may directly or indirectly make changes to the Stadium and Outfield Development Parcel as set forth in the separate CDA and otherwise in this Agreement. After those alterations and modifications, and others necessary to effectuate the intent of the CDA, are 14 made, absent an agreement by TMO, the City shall not alter or modify any of the following revenue-generating items at the Stadium: major advertising locations (i.e., outfield fence, dugout and concourse), number of seats, number and location of concession areas, number and location of novelty and souvenir sale locations (including the walk-in store that will be accessible from outside the Stadium), box office, administrative office space, storage space, Luxury Suites, picnic areas and grilling capabilities. 2. Capital Improvements to the Stadium. The City agrees to future investments in Stadium capital improvements as outlined herein. Said Capital Improvement Plan ("CIP") payments shall be made based on an annualized CIP mutually agreed to and presented by October 1 of the year preceding the next City fiscal year in which the improvements are to be made. The CIP obligation shall be for up to the following minimum and maximum amounts in each City fiscal year: 2015-2017 $0.00 (none) 2018-2021 $50,000.00 per fiscal year minimum $75,000.00 per fiscal year maximum 2022-2024 $75,000.00 per fiscal year minimum $100,000.00 per fiscal year maximum 2025-end $100,000.00 per fiscal year minimum $200,000.00 per fiscal year maximum In the event the City and TMO are unable to reach a mutually agreed annual CIP, then the Parties shall submit their dispute to the alternative dispute panel as set forth in Article XXV, Section(Z). In 2025 a new jointly funded and commissioned facilities study of the Stadium will be done to determine if repairs and upgrades are necessary. 15 3. Financing. It is understood that the City will arrange and obtain any financing as it deems necessary for the Capital Improvement Program. B. Parking. All parking referenced herein is as-shown on Exhibit"F." 1. TMO Home Baseball Game and TMO Special Event Parking. For the term of this Agreement and at no cost or expense to TMO, the City shall maintain parking surrounding the Stadium that meets or exceeds the standards of the Professional Baseball Agreement. As to the price charged each automobile utilizing such parking in conjunction with a TMO Home Baseball Game or TMO Special Event, due consideration shall be given to parking charges at other Single"A"baseball stadiums in the Midwest League. Therefore, the Parties agree that they will submit a joint recommendation to the Lansing City Council consistent with the intent that the cost of parking shall not exceed two thirds (2/3) of the lowest priced Paid Admission Ticket, it being agreed in advance that such ticket price shall not be less than Eight Dollars ($5.00). If the lowest priced Paid Admission Ticket does not increase proportionately with any increases in other Paid Admission Tickets sold by TMO, then this provision or restriction on the joint recommendation of the City and TMO to the Lansing City Council with respect to the price of parking for TMO Home Baseball Games and TMO Special Events shall not apply. The City shall retain without offset all revenue generated from such parking fees. 2. Premium Parking Lots. To the extent that it does not conflict with the terms and conditions of this Article, it is the intent of the Parties that the parking spaces located in City Lot 21 shall be designated a premium lot, thereby permitting such lot to be sold or rented for Five Dollars ($5.00) or such greater amount as may be agreed to 16 by the Parties. In such event City Lot 21 is permanently disposed of or is unavailable for use due to a pre-scheduled Lansing Center event, the Parties shall mutually agree to substitute parking for the premium lot. Such premium spaces may be sold or rented to third party purchasers who shall be entitled, for an annual payment, to park in such premium lots at each TMO Home Baseball Game for the applicable baseball season. TMO shall have the right to sell up to sixty (60) spaces of such premium parking, unless TMO and the City agree in writing to modify this amount. All parking revenue collected by TMO shall be due and payable to the City on the same accounting schedule as set forth for DGR in Article XN, Section A.1. If additional City-owned or controlled parking becomes available within a reasonable distance, the City reserves the right to add or substitute it for the required premium lots. The City retains the absolute right to market, develop, or sell property where spaces are located, including but not limited to said premium parking lots. In the event parking spots are disposed of, the City will explore,but cannot guarantee,providing public parking spots in the public or private development. In the event premium parking is disposed of, the Parties acknowledge the City may not be able to provide 60 premium parking spaces, in which case the City will attempt to provide the lost spaces at nearby City facilities. 3. Weekday Game Parkin. Notwithstanding anything herein to the contrary, in the event that a TMO Home Baseball Game commences during normal business hours (9:00 a.m. to 5:00 p.m.) on a weekday (Monday through Friday), the City shall use the pricing structure described above in Subparagraph 1 at a parking garage or lot 17 selected by the City for use by attendees of TMO Home Baseball Games. All other lots/garages shall be subject to the normal parking charges during such period. 4. TMO Parkin. In addition to the parking provided above, to the extent legally permissible,the City shall provide to TMO: a. TMO Employee Parking. Twenty-five (25) free parking spaces to be used at any time (year-round) during the term of the Agreement by TMO's staff members. Twenty(20) of these twenty-five TMO staff member spaces shall be located in City Lot 49A, and five (5) of the TMO staff member spaces shall be located in the Southwest Plaza(Lot 52). b. Seasonal Staff and Player Parking. Forty(40) free parking spaces, located in City Lot 49A, that will be available for TMO use at any time from April 1 until Septemberl5 for full-time seasonal staff and players. C. During all TMO Home Baseball Games and TMO Special Events, for the use of its VIP's and Suiteholders of TMO Luxury Suites, fifty-five (55) free parking spaces in close proximity to the Stadium. Twenty-five (25) of these spaces shall be located in the Southwest Plaza (Lot 52), with the remaining thirty(30) spaces located in either City Lot 21 or City Lot 49, as determined by the City. In such event a parking location identified in this Section is either permanently disposed of or is unavailable for use due to a pre- scheduled Lansing Center event, the Parties shall mutually agree to a substitute parking location. 5. Stadium Souvenir Store Parkin. Except during TMO Home Baseball Games, TMO Special Events and City Events, the City will reserve, at all times, at least five (5) 18 parking spaces in close proximity to the Stadium Souvenir Store. Such parking spaces shall: a. Be intended for the use of Stadium Souvenir Store patrons (TMO will prohibit its staff from using these spaces); b. Permit thirty(30)minutes of free parking; and c. Be located in the parking area immediately south of the main entrance to the Stadium. 6. TMO Banquet Center and TMO Special Event Parking—TMO has the right to presell parking spaces in the Southwest Plaza(Lot 52) and Southeast Plaza(Lot 53) on weekday evenings (after 5pm) and weekends for exclusive customer use during TMO Banquet Center or TMO Special Events. Any parking sold would be at market rate (currently$6.00 per space), and must be sold by the whole Lot. A TMO customer can purchase access to either all spots in Lot 52, all spots in Lot 53, or all spots in both Lots, but may not purchase portions of each Lot. City shall retain without offset all revenues generated from such parking fees. Sold Lots will be staffed by the City, and TMO must provide at least fourteen(14)days advanced notice to the City prior to an event for which parking in Lots 52 or 53 has been sold. TMO recognizes that this parking is on a first-come, first-served basis, and this is not a guarantee of parking availability 7. TMO Home Baseball Game Bus Parking. For the term of this Agreement and at no cost to TMO, the City will cap all public parking meters on the north side of the 500 block of N. Michigan Ave during and at least two hours prior to each TMO Home Baseball Games for the use of the visiting team bus and other game-related bus 19 parking. In the event additional bus parking is needed, the City will use reasonable efforts to cap additional public meters on the south side of the 500 block of N. Michigan Ave. Separately, during no more than five (5) TMO Home Baseball Games per season that commence during normal business hours (4:00 a.m. to 5:00 p.m.) on a weekday (Monday through Friday), the City will provide TMO with free parking for school buses and other similar buses transporting patrons to the game. This bus parking will be provided in City Lot 37. In such event City Lot 37 is either permanently disposed of or is unavailable for use due to a pre-scheduled Lansing Center event,the Parties shall mutually agree to a substitute parking location. 8. All Parking obligations addressed in this Section B are exclusively for Stadium operational purposes. None of the parking discussed is intended, nor shall it be used for, the private components of the Outfield Development Project as set forth in Article XXIV. C. Parking Maintenance. The City shall assure access to, and perform all required maintenance on, the parking described in Paragraph B including but not limited to reasonably required snow removal and resurfacing. D. Stadium Maintenance. The City shall perform all major maintenance, restoration, replacement and repairs of the Stadium and all components thereof, of whatever kind and nature, foreseen or unforeseen, as may be necessary to keep the Stadium in good condition and repair, reasonable wear and tear excepted, including but not limited to the major maintenance,restoration,repair and replacement of all structural and concrete components, all heating, air conditioning, ventilating, plumbing, and electrical systems,playing surface replacement, field drainage systems, field lighting 20 system (including field lighting installation and reinstallation), Stadium lighting, grandstands, sound system, seating, bleachers, elevators, entry way area, glass, walls, roof,parking area, sidewalks and exterior landscaping maintenance, excluding there from the following, all of which shall be the responsibility of TMO: i) damages or repairs necessitated by the negligence of TMO or the team; and ii) all ordinary maintenance as set forth in Exhibit A. Except as to Stadium matters described as Field Preparation and Field and Surrounding Grounds Maintenance,the City shall conduct all necessary preventative and long-term repairs, replacements and maintenance of such systems as may be required. The City shall be responsible for the costs of annual maintenance contracts for: i) I VAC, and ii) elevators. TMO shall be responsible for the cost of annual inspection/recharging (but not replacement) of the fire extinguishers. The Parties shall split the cost equally of the annual Food and Beverage Concessions Equipment maintenance contract. Disputes regarding what is a City maintenance responsibility and what is a TMO maintenance responsibility shall be submitted to dispute resolution as outlined in Article XXV (Z). E. Securi1y. 1. Stadium Security. In the area surrounding the Stadium, the City shall be responsible for security pursuant to its police powers. 2. City's Right to Eject. Notwithstanding anything in this Agreement to the contrary, the City shall retain the right to eject from the Stadium objectionable individuals. F. Food and Beverage Concessions Equipment. The City shall provide the Fixed Food and Beverage Concessions Equipment. The Fined Food and Beverage Concessions Equipment 21 shall remain the property of the City with TMO being granted the exclusive license to use such fined equipment in connection with TMO's exclusive license to all Food and Beverage Concessions at the Stadium. TMO shall provide, replace as reasonably necessary, and maintain all Portable and Small Food and Beverage Concessions Equipment. Replacement of Food and Beverage Concessions Equipment may be part of the Capital Improvement PIan(s) referenced in Article IV, Section A(2), in the event the Parties are able to mutually agree as set forth therein. G. Monthly Walk-throughs. The Parties shall conduct a monthly walk through of the Stadium for the purpose of reviewing Stadium maintenance, cleanliness, safety, damages, and other items of mutual concern. This walk-though shall be conducted at least once each calendar month at a time and date mutually agreed by the Parties, and shall be conducted by the Parties' respective designees walking together through the Stadium. The Parties may choose to dispense with a monthly walk-through, provided they mutually agree in writing in advance. ARTICLE V. TMO'S OBLIGATIONS In consideration of the covenants, terms and conditions set forth in this Agreement, the City and TMO agree as follows: A. TMO Home Baseball Games. For the term of this Agreement, TMO shall cause the Club to play all of its home baseball games at the Stadium and, consistent with Article XVI, covenants to play a minimum of fifty-five (SS) regular season home games at the Stadium. B. Stadium Services. 22 1. At TMO Home Baseball Games and TMO Special Events. At TMO's sole cost and expense, TMO will provide Stadium Services throughout the Stadium at TMO Home Baseball Games and TMO Special Events TMO will retain, employ, compensate, train and manage sufficient numbers of personnel to provide such services in a high quality and professional manner. 2. At City Events. Pursuant to a timely request by the City, TMO may provide Stadium Services at City Events or alternatively, the City may provide Stadium Services at City Events. The Food and Beverage Concessions Equipment, the Stadium scoreboard, the scoreboard integrated sound system, if any, and/or box office ticketing equipment and computer system shall be available to the City for City Events only if TMO provides operators for such equipment. TMO agrees not to bind the City in any way to the exclusive use of a professional ticketing agency should the City elect not to utilize this service of TMO for City Events. In order to allow TMO the opportunity to arrange appropriate staffmg for City Events, City agrees to use its best efforts to make each request for such Stadium Service not less than ten (10) days prior to the City Event at which such Stadium Services are to be provided by TMO. TMO will retain, employ, compensate, train and manage sufficient numbers of personnel to provide such services in a high quality and professional manner. The City shall pay to TMO pursuant to Article XIV below, only the actual cost of such staffmg services actually used by the City. 3. Field Preparation and Field and Surrounding Grounds Maintenance. Notwithstanding anything in this Agreement to the contrary, at all times during the terra of this Agreement, TMO shall be solely responsible for the Stadium Services 23 described as Field Preparation and Field and Surrounding Grounds Maintenance for all baseball games held at the Stadium. In satisfaction of this obligation, TMO will utilize, to the greatest reasonable extent possible, the expertise of MSU. Consistent therewith, TMO will endeavor to employ at least one (1) MSU trained individual possessing such expertise. 4. Stadium Operations Plan. TMO shall comply with the Stadium Operations Plan attached to this Agreement as Exhibit B. 5. Scoreboard. a. Description. At no cost to the City, TMO will provide at the Stadium a professional quality scoreboard that meets or exceeds the requirements of the Professional Baseball Agreement in a location as indicated in the Plans and Specifications. Said scoreboard and the advertising thereon shall be subject to the right of reasonable approval of the City. Such scoreboard will have i) enhanced message centers, ii) video capabilities, iii) panel displays capable of affixing advertising signage and iv) sufficient surface area to prominently display the identification of any entity owning the naming rights to the Stadium. b. Maintenance and Replacement: TMO shall be exclusively responsible for all matters and costs related to the installation, maintenance, repairs and replacement of the scoreboard. Pursuant to the specifications, terms, and conditions of the CDA, TMO agrees to replace the scoreboard before the first TMO Home Baseball Game held in 2015 at its sole expense. C. Ownership. Subject to the covenants, terms and conditions of this 24 Agreement, TMO shall retain ownership of such scoreboard for the term of this Agreement. The City will use its best efforts to assist TMO in the attainment of all easements, permissions and permits necessary to permanently locate such scoreboard in the Stadium. Upon termination of this Agreement for any reason other than the City's breach, TMO will transfer to the City ownership of such scoreboard without cost to the City, free and clear of all liens and encumbrances. ARTICLE VI. CONCESSIONS A. Concessions Manager. In consideration of the covenants, terms and conditions set forth in this Agreement, TMO and the City agree that TMO shall act as the exclusive Concessions Manager on behalf of the City, consistent with Paragraphs B through E below, and shall itself or through its assignee develop, market and operate: I. All Food and Beverage Concessions and Food and Beverage Concessions Equipment at all Stadium Events; 2, All Novelties and Souvenir sales at the Stadium and the Stadium Souvenir Stores at TMO Home Baseball Games and TMO Special Events; and 3. All TMO Special Event Novelties and Souvenirs at all TMO Special Events. B. Exclusivity. Nothing contained in this Agreement shall be construed to limit the City from selling or authorizing a third party to sell Novelties or Souvenirs at City Events, provided that, but for MSU or non-profit entity related Novelty and Souvenirs sold at City Events, the City will not at any time sell or authorize the sale of i) any 25 baseball-related souvenirs, devices, items or other baseball related personal property at the Stadium (except items directly related to a City event which is being held at the time of the sale); ii)Food and Beverage Concessions by Parties other than TMO; or iii) Novelties and Souvenirs and/or TMO Special Event Novelties and Souvenirs at TMO Home Baseball Games and/or TMO Special Events. Notwithstanding anything herein to the contrary, the City shall solely retain without offset all revenue from the sale of City Event related Novelties and Souvenirs at the Stadium during City Events. C. Menu Approval. On or before February 1 of each year of this Agreement,TMO will submit to the City, for approval by the City, a proposed menu and prices of food and beverages for the upcoming year. Such menu shall specifically describe each item of food and beverage to be offered and the price at which each such item will be sold, it being the understanding of the Parties that the price charged for each such item will be consistent with the prices charged for similar items at other stadiums and entertainment facilities in the region. The City will not unreasonably withhold or delay its approval of such menu and in the event of disapproval, will suggest acceptable modifications. D. Performance and Notice. Consistent with the terms and conditions of Paragraph A above, TMO agrees to provide Food and Beverage Concessions at all City Events. In order to allow TMO to arrange adequate staffing, the City will use its best efforts to notify TMO of such City Event not less than twenty (20) days prior to such City Event. For the term of this Agreement, the City will not use or authorize any third party to use the Food and Beverage Concessions Equipment at the Stadium. 26 E. Compliance. In the exercise of the concession management rights granted to it in this Article, TMO shall comply with all state and local laws, statutes, rules, regulations and requirements (including licenses and permits)pertaining to the sale of food and beverages (including alcoholic beverages). ARTICLE VII. NAMING RIGHTS A. Stadium Naming Rights. The City and TMO currently have a stadium naming rights agreement with Thomas Cooley Law School ("Cooley"). In the event the existing Stadium naming rights agreement with Cooley expires or is terminated for any reason, then TMO shall have the right to market and sell, lease, or license the naming rights to the Stadium for a period of time no longer than the remainder of the term of this Agreement. In that event, the City and TMO shall split the gross revenue less costs to execute the package (not including marketing and sales costs) from the sale of said rights equally. TMO shall not enter into any Stadium naming rights agreement without the prior approval of the City,which shall have the right to refuse approval for any reason. No revenue received by the City or benefit given to such naming entity, shall be included in DGR. The purchaser, lessee, or licensee of Stadium Naming Rights will receive from the Parties the following identification: I. In any written statement, including but not limited to tickets related to all Stadium Events, the City and TMO will use the name and logo of the entity securing such 27 Stadium naming rights. The party securing the naming rights shall have the right, as a third party beneficiary, to enforce the rights in the preceding sentence; 2. The identification of the entity securing such Stadium naming rights will appear in a prominent position on the Stadium's scoreboard as described in Article V above; and, 3. TMO agrees that it shall not print any advertisement on its tickets, nor allow any advertisement on the Stadium Scoreboard, that conflicts with the major or material products or services advertised or offered for sale by the owner, lessee or licensee of such Stadium naming rights. Nor shall TMO engage a sponsor of a major give- away for or naming rights to a TMO Home Baseball Game or TMO Special Event which sells major or material products or services that conflict with the major or material products or services advertised or offered for sale by the owner, lessee or licensee of the Stadium naming rights. B. Stadium Name. TMO agrees that whenever it uses the Stadium's name on any material, it shall use the full name of the Stadium. C. Naming Rights Suite. If the holder of the naming rights obtains exclusive use of a Naming Rights Suite, it shall be licensed to the holder of the naming rights and the revenue shall be divided in the same manner as the revenue from the sale of the naming rights as set forth above. If the holder of the naming rights does not obtain a Naming Rights Suite, then it will be treated as an annual TMO Luxury Suite. D. Field Naming Rights. The City and TMO currently have a field naming rights agreement with Jackson National Life Insurance Co. ("JNL"). In the event the existing field naming rights agreement with JNL expires or is terminated for any 28 reason, then TMO shall have the right to market and sell, lease, or license the naming rights to the field for a period of time no longer than the remainder of the term of this Agreement. In that event, the City and TMO shall split the gross revenue less costs to execute the package (not including marketing and sales costs) from the sale of said rights equally. TMO shall not enter into any field naming rights agreement without the prior approval of the City, which shall have the right to refuse approval for any reason. No revenue received by the City or benefit given to such naming entity, shall be included in DGR. E. Field Name. TMO agrees that whenever it uses the field's name on any material, it shall use the full name of the field. F. Naming Rights Suite. If the holder of the field naming rights obtains exclusive use of a Naming Rights Suite, it shall be licensed to the holder of the field naming rights and the revenue shall be divided in the same manner as the revenue from the sale of the Stadium naming rights as set forth above. If the holder of the naming rights does not obtain a Naming Rights Suite, then it will be treated as an annual TMO Luxury Suite. ARTICLE VIII. STADIUM USE A. TMO's Rights and Obligations. The City and TMO agree that TMO shall have the following rights and obligations related to the use of the Stadium: B. TMO Home Baseball Games and TMO Special Events. 29 1. Scope. TMO shall have exclusive use of the Stadium for the conduct of TMO Home Baseball Games and TMO Special Events as the same have been specifically scheduled pursuant to Article IX below. Such use shall include the period of time from 7:00 a.m. on the date scheduled until 12:00 a.m. (midnight)on said date,unless extended with permission of the City on any particular day. Except as limited in Paragraph B of this Article, such use shall encompass the entire Stadium. Without the prior approval of TMO and to the extent legally permissible, the City shall not conduct or authorize or permit any other individual or entity to conduct professional baseball at the Stadium. 2. Ticketing. TMO shall be exclusively responsible for all ticket printing, sales and distribution related to TMO Home Baseball Games and TMO Special Events. In satisfaction of this obligation, TMO shall have the right to designate the identification of seating at the Stadium and to conduct such ticket sales at the Stadium box office at all times it deems proper. TMO may issue up to 275 Complimentary Admissions each TMO Home Baseball Game to TMO and visiting team personnel, guests and officials and representatives of the media. TMO and the City recognize that TMO is required to honor, as a member of the Midwest League, Complimentary Admission passes granted to members of the Midwest League and National Association and that such Complimentary Admissions will be in addition to the Complimentary Admissions discussed in the preceding sentence. All Complimentary Admission press passes, staff passes, league passes and player passes issued by TMO, shall be of a form previously approved by the City with such approval not to be unreasonably withheld. In addition, not less than sixty(60) days 30 prior to the commencement of each Regular Season, TMO will present to the City an exemplar of all other Complimentary Admission passes issued by the Midwest League, the National Association or Major League Baseball that will be honored at TMO Home Baseball Games. TMO shall not have the right to sell or allow the sale of tickets at the Stadium box office for events other than TMO Home Baseball Games and TMO Special Events without the express written approval of the City. TMO shall have the right to charge any amount it deems appropriate for Paid Admission Tickets to TMO Home Baseball Games and tickets to TMO Special Events with due consideration to prices charged at other similar stadiums in the region comprising the Midwest League. C. TMO Home Baseball Game Promotion Tickets. In addition to Paid Admission Tickets provided for Luxury Suite and Host Suite usage as described in this Article, at the beginning of each Regular Season, TMO shall provide to the City, for the City's public relations purposes, a block of thirty-four(34) Complimentary Admission passes at a mutually agreed upon location within the Stadium for each TMO Home Baseball Game. D. Suites. I. TMO Luxury Suites. Subject to Article VII, for the term of this Agreement, TMO shall have the right to effectuate the lease, license or rental for the use of the TMO Luxury Suites upon terms, conditions and a form of agreement approved by the City and TMO. The City shall be the contracting entity for such TMO Luxury Suites with all indemnification, release and other benefits from such Suiteholder flowing through to TMO as a third party beneficiary. The City hereby grants TMO the right to enforce and prosecute all obligations, duties and rights under such agreements. 31 Every agreement with a Suiteholder shall contain a provision allowing an option to be held by the Suiteholder allowing such Suiteholder to sublease or sublicense to the City and/or TMO, upon terms agreed to between such Suiteholder and the City and/or TMO, the use of such Suiteholder's Luxury Suite at City Events and/or TMO Special Events. The lessee, licensee or renter shall have the following benefits: a. Choice of build-out options as designated by the City in good faith consultation with TMO and at Suiteholders'cost and expense; b. Ten(10)tickets to each TMO Home Baseball Game; C. The right to purchase from the City, at a reasonable price,ten(10)tickets to each City Event; d. The right to purchase from TMO, at a reasonable price, ten (10) tickets to each TMO Special Event; and e. Full waitperson services at each Stadium Event at which TMO is operating Food and Beverage Concessions. All revenue generated from such lease, license or rental shall be subject to the provisions of Article XIV. 2. Clubhouse. For the Term of the Agreement, TMO shall have the exclusive right to license, lease, or rent the use of the Clubhouse. The City hereby grants TMO the right to enforce and prosecute all obligations, duties and rights under such agreements. Such license, lease, or rental shall be made on an event-by-event basis and CTR shall be subject to Article XIV below. 3. Expandable Luxury Suites. Only TMO shall have the right to rent the use of the Expandable Luxury Suites at each TMO Home Baseball Game and at TMO Special 32 Events. Such rental shall be made on an event-by-event basis and revenue generated from such rental shall be subject to Article XIV below. 4. Host Suite. For the term of this Agreement, TMO shall have the exclusive use of one (1) Host Suite. Such use shall entitle TMO to the following benefits: a. Thirty Two (32)tickets to each TMO Home Baseball Game; b. Thirty Two (32)tickets to each TMO Special Event; and C. Full waitperson services at each Stadium Event that TMO is operating Food and Beverage Concessions. E. Access for TMO Training. Upon advance notice to the City, TMO shall have the right of access to and use of the Stadium playing field and locker rooms in order to conduct baseball-related training, upon advance notice to the City provided that such access and use shall in no way interfere with the schedule, preparation or conduct of a City Event. All TMO baseball-related training shall be conducted at TMO's sole cost and expense. F. Administrative Offices. In order to facilitate the satisfaction of its obligations undertaken pursuant to this Agreement, TMO shall at all times during the term of this Agreement have the right of access to and use of at least Two Thousand Seven Hundred(2,700) square feet of administrative office space in the Stadium. Such office space shall be suitably finished for use as an office, excluding furniture, interior decorating, office equipment and fixtures. G. Stadium Souvenir Stores and Box Offices. During the term of this Agreement TMO shall have the exclusive right to occupy and operate with the exception of City Events, at any time TMO deems appropriate, the Stadium Souvenir Stores and Stadium box office connected to the administrative offices that are used by TMO. Any revenue generated from such operation shall be subject to the provisions of Article XIV. 33 H. The City's Rights and Obligations. Notwithstanding Paragraph A of this Article, the City does not relinquish and does herein and hereby retain all ownership rights and control associated with the Stadium. Therefore, all duly authorized representatives of the City shall have access to all areas of the Stadium at any time and on any occasion, provided that any such representative, other than any City operating personnel assigned to the Stadium must have either a Complimentary Admission or Paid Admission Ticket in order to observe a TMO Home Baseball Game or TMO Special Event. The City does hereby retain the right to enforce all necessary and proper rules for the management,operation and control of the Stadium. Consistent with its ownership of the Stadium and with TMO's rights as granted in this Agreement, the City and TMO agree that the City shall have the following rights and obligations related to the use of the Stadium: I. City Events. 1. Scope. Subject to TMO's right to use exclusively the Stadium administrative offices, Food and Beverage Concessions areas, box office, home team locker room and the Stadium Souvenir Stores as such exclusive use is granted by this Agreement, the City shall have exclusive use and control of the Stadium for any and all events other than TMO Home Baseball Games and TMO Special Events. In exercising such use and control, the City shall give due consideration to the potential deterioration of the Stadium's playing surface. 34 2. Ticketing. The City shall be exclusively responsible for all ticket printing, sale and distribution related to City Events. The City shall have the right to charge any amount it deems appropriate for tickets to City Events. J. Suites. 1. Clubhouse. For the Term of the Agreement, TMO shall have the exclusive right to license, lease, or rent the use of the Clubhouse. The City hereby grants TMO the right to enforce and prosecute all obligations, duties and rights under such agreements. Such license, lease, or rental shall be made on an event-by-event basis and CTR shall be subject to Article XIV below. 2. TMO Luxury Suites. The City shall be the contracting party for the TMO Luxury Suites with all indemnification, release and other benefits from such Suiteholders flowing through to TMO as a third party beneficiary. The City hereby grants TMO the right to enforce and prosecute all obligations, duties and rights under such agreements. TMO however, shall have the right to effectuate the lease, license or rental of the TMO Luxury Suites by producing to the City a prospective Suitcholder ready, willing and able to enter into such agreement. For each TMO Luxury Suite leased, hcensed or rented, the City shall provide to such lessee, licensee or renter the opportunity to purchase, at a reasonable price, ten(10)tickets to each City Event. 3. Expandable Luxury Suites. The City shall have the exclusive right to rent the use of the Expandable Luxury Suites at City Events and at other times when TMO is not conducting a TMO Home Baseball Game or TMO Special Event. The City shall have the right to retain without offset any revenue generated from such lease, license or rental. 35 4. Host Suite. The City shall have the exclusive use of one (1) Host Suite. Such use shall entitle the City to the following benefits: a. Thirty Two (32)tickets to each TMO Horne Baseball Game; b. Thirty Two (32)tickets to each City Event; C. Full waitperson services at each Stadium Event that TMO is operating Food and Beverage Concessions; d. The City shall receive a forty percent (400,,0) discount oft retail value on all food and beverages purchased in the City Host Suite. K. Message Centers. At all times during the term of this Agreement, the City shall have the exclusive right and responsibility to control the use and operation of Message Centers located on Michigan Avenue or at any other location adjacent to the Stadium. Notwithstanding the foregoing, the City agrees to allow TMO, without charge, to advertise TMO Home Baseball Games and TMO Special Events on such Message Centers in an amount and frequency to be agreed to between the Parties. Any revenues generated from the sale of advertising on the Message Centers shall be retained without offset by the City. L. Mutually Sponsored Events 1. Scope. Notwithstanding the provisions in this Article V1II regarding TMO Home Baseball Games, TMO Special Events, and City Events, the Parties shall each at their respective sole and absolute discretion, have the right to jointly conduct Mutually Sponsored Events. Any Mutually Sponsored Event shall be by written agreement between the Parties only. The written agreement shall contain the period of time the Stadium shall be available for the Mutually Sponsored Event and, unless otherwise stated, shall encompass the entire Stadium. 36 2. Scheduling. Any Mutually Sponsored Event must be scheduled in accordance and conformity with Article IX. 3. The City's Rights and Obligations. Unless otherwise mutually agreed to in writing by the Parties at their respective sole and absolute discretion, the City shall be responsible for the following actual costs for a Mutually Sponsored Event: production,talent buying, field protection and setup, seating setup, ticket selling, required police and fire, fifty percent(50%)of mutually agreed upon marketing expenses, and event coordination. 4. TMO Rights and Obligations, Unless otherwise mutually agreed to in writing by the Parties at their respective sole and absolute discretion, TMO shall be responsible for the following actual costs for a Mutually Sponsored Event: Food and Beverage Concessions, setup and cleanup of the Stadium,Novelties and Souvenirs,preparation and repair of turf, Stadium Services, and fifty percent (50%) of mutually agreed upon marketing expenses. 5. Best Practices. Both Parties agree to use best practices in the conduct of a Mutually Sponsored Event and to keep the other Party fully informed of their progress and any unusual expenses related to the Mutually Sponsored Event. 6. No Agency. Neither Party shall have the authority to obligate the other. Nothing herein shall be construed to create an agency, servant, or employee relationship between TMO and any of its employees, officers, or agents, and the City and any of its employees, officers, or agents. 7. Sponsorship of Mutually Sponsored Events. The Parties may desire to obtain sponsors for Mutually Sponsored Events and recognize that revenue may be 37 maximized by coordination of activities. Therefore, on an event-by-event basis, the Parties will communicate with each other in advance and coordinate their activities with regard to sponsors. Sponsorship agreements require the mutual consent of both Parties. M. Banquet Center. 1. Use During Stadium Events. The Banquet Center shall be operated as part of the Stadium and used to provide services to Stadium patrons. All Stadium patrons in the Banquet Center shall be ticketed in accordance with this Agreement. All covenants, terms, and conditions, including financial obligations of this Agreement, shall apply to TMO's use of the Banquet Center, and all revenue generated by or within the Banquet Center shall be considered part of DGR. 2. Use During All Non-Stadium Events. TMO shall have the exclusive right to license, lease, or rent the use of the Banquet Center. The City hereby grants TMO the right to enforce and prosecute all obligations, duties and rights under such agreements. Such license, lease, or rental shall be made on an event-by-event basis. No event shall exceed the established seating capacity of the Banquet Center on each floor. On the first floor, the maximum seating capacity shall be as established by the Fire Marshall. On the second floor, the maximum seating capacity shall be no more than one hundred fifty(150). All covenants and financial obligations of this Agreement shall apply to TMO's use of the Banquet Center, and all revenue generated by or within the Banquet Center shall be part of DGR. TMO shall manage and operate the Banquet Center in accordance with best practices in 38 the industry. TMO will not actively solicit events or business already procured at other City owned event facilities. ARTICLE IX. SCHEDULING The City and TMO agree that there is a need for the scheduling of events at the Stadium. As such, the Parties have adopted, for implementation each year of this Agreement, the following scheduling procedure: A. Proposed TMO Schedule. On or before March 1 of each immediately preceding year, the City shall deliver to TMO those dates upon which the City desires to conduct City Events at the Stadium during such applicable year. In the event that TMO provides the City with reasonable notice that the Midwest League intends to formulate its schedule prior to January 15, the City must provide TMO with such desired dates as soon as practicable after TMO's notice. Upon receipt thereof,TMO will request that the Midwest League schedule TMO Home Baseball Games to accommodate such City desired dates. TMO agrees to request that the Midwest League accommodate these events in its scheduling. The Parties acknowledge that the Midwest League is the final and sole authority as the TMO Home Baseball Game schedule, but TMO shall use its best efforts to urge the Midwest League to accommodate TMO's request. The Parties agree that the number of pre-season,post-season and exhibition games conducted by TMO shall not exceed fifteen(15)during each calendar year. 39 B. Approved TMO Schedule. On July 1 of the year preceding each license year or when received from the Midwest League, whichever is later, TMO will submit to the City its Midwest League approved schedule. C. City Selection. Upon receipt from TMO of the Midwest League approved schedule, the City shall have until October 1 to select the dates for the following calendar year on which it desires to conduct City Events, The City shall be free to select dates for City Events which have not been previously reserved pursuant to Paragraph B above, provided that it intends to conduct a specific event on the date which it selects. In making such selections, the City shall give due consideration to the potential deterioration of the Stadium's playing surface caused by the conduct of such City Events. D. TMO Special Event Selection. After October 1 of each year, TMO shall have, the opportunity to schedule TMO Special Events on any dates for the following year not previously scheduled with TMO Home Baseball Games as identified in Section A above, and the specified City Events as scheduled in Section C above. In making such selections, TMO shall give due consideration to the potential deterioration of the Stadium's playing surface caused by the conduct of such TMO Special Events. TMO is responsible for the cost of repairing any damage to the playing surface beyond normal wear and tear caused by TMO Special Events. E. Remaining Dates. Thereafter, all remaining dates will be exclusively reserved for TMO. The City shall receive payment for any events conducted pursuant to Article XIV, Financial Terms. . 40 F. MutuaIly Sponsored Events. Notwithstanding sections C, D, and E of this Article IX, the Parties may agree at any time to schedule a Mutually Sponsored Event at the Stadium in compliance with the requirements of Section L of Article VIII of this Agreement as amended. ARTICLE X. MARKETING Each Party shall be responsible for its own marketing. TMO shall be responsible for and have the exclusive right of marketing TMO Home Baseball Games and TMO Special Events. The City shall be exclusively responsible for marketing City Events and the Stadium. ARTICLE XI. ADVERTISING A. TMO's Advertising Rights and Responsibilities. 1. Permanently Affixed Stadium Signage and Scoreboard Advertising. Subject to the fees paid to the City pursuant to Article XI(B)(2), Article X1V and subparagraphs a through c below, TMO shall have the exclusive right to sell all Permanently Affixed Stadium Signage and Scoreboard Advertising. a. The placement of all Permanently Affixed Stadium Signage shall be subject to the prior approval of the City, with such approval not to be unreasonably withheld. The installation of such Permanently Affixed Stadium Signage shall be the sole and exclusive responsibility of TMO. The Parties have further agreed that, as it applies to the provisions of Article XIV(A), all 41 revenue generated from the sale of Permanently Affixed Stadium Signage shall be attributable to TMO Home Baseball Games without proration or offset. b. To the extent that such advertising conflicts with the rules and regulations of the National Collegiate Athletic Association, as such rules may from time to time exist, thus preventing the conduct of a City Event, TMO, at its sole cost and expense, shall temporarily cover such conflicting advertising thereby obstructing it from view. C. It is specifically agreed to by the Parties that there shall be no advertising in the Luxury Suites, the Expandable Luxury Suites or the Host Suites, except as may occur on closed circuit television. However, the City shall retain the sole right to place Suiteholder identification signage inside and outside of Luxury Suites. d. Permanently Affixed Stadium signage located in in or on the Developer Units are subject to TMO obtaining consent from the Developer, constructing, and maintaining such signage at its sole expense. TMO shall be responsible for complying with all applicable local, state and federal laws and regulations with regard to obtaining all required permits and approvals related to any and all such signage. Any such signage must face the interior of the Stadium. 2. Further Advertising at TMO Home Baseball Games and TMO Special Events. TMO shall have the exclusive right to sell advertising on the scoreboard message center, radio, closed circuit, regular television and other media (with the prior 42 approval of the City, with such approval not being unreasonably withheld) associated with TMO Home Baseball Games or TMO Special Events. Any revenue generated from the sale of such Advertising shall be subject to the obligations of Article XIV of this Agreement. B. The City's Advertising Rights and Responsibilities. 1. Permanently Affixed Stadium Si�unage. Except for the signage associated with Stadium naming rights,the City will sell no Permanently Affixed Stadium Signage, 2. Advertising at City Events. Subject to the limitations contained in this Agreement, the City shall have the right to sell and retain without offset all revenue generated from the sale of advertising associated with City Events, including but not limited to, advertising on the scoreboard message center and video display, print media and broadcast media, provided that such advertising without the prior consent of TMO, shall in no way materially with Permanently Affixed Stadium Signage or any right related to TMO's exclusive license to provide Food and Beverage Concessions at all Stadium Events pursuant to Article VI above, including but not limited to pouring rights at the Stadium. 3. Advertising for TMO Events. TMO agrees that it will not sell advertising on Paid Admission Tickets printed for TMO Home Baseball Games that will conflict with products and services advertised by the entity or entities granted naming rights to the Stadium. 43 ARTICLE XII, BROADCAST RIGHTS A. TMO's Broadcast Rights. TMO shall have exclusive ownership and control over Broadcast Rights associated with TMO Home Baseball Games and TMO Special Events. In the exercise of such ownership and control, however, TMO shall take all steps reasonably necessary to protect from diminution the sale of Paid Admission tickets to TMO Home Baseball Games. All revenue generated by TMO relating to such Broadcast Rights shall be retained exclusively by TMO, with such revenue neither being included in.DGR nor subject to Article XN herein. B. City's Broadcast Rights. The City shall have exclusive ownership and control over Broadcast Rights associated with i) City Events; ii} the Stadium, including but not limited to, Stadium construction and development; and iii) all other events and matters associated with the Stadium that do not involve the conduct of TMO Home Baseball Games or TMO Special Events. All revenue generated by the City relating to such Broadcast Rights shall be retained exclusively by the City. ARTICLE XIII. UTILITIES Payments for Utilities shall be shared equally between the City and TMO. ARTICLE XIV. FINANCIAL TERMS 44 The obligations listed in this Article of this Agreement are in addition to the Parties' other obligations described herein. A. TMO's Rights and Obligations. 1. License Fee. In consideration for the License granted to it by the City pursuant to this Agreement, TMO will annually pay to the City five percent (5%) of the DGR. TMO shall annually pay the City an additional two and one half percent (2.5%) on all DGR beyond four million one hundred thirty-four thousand one hundred two and 001100 dollars ($4,134,102.00), for a total of seven and one half percent (7.5%). Such license fee shall be due and payable on the fifteenth (15th) day of each calendar month and shall be based upon the DGR sum actually owed by TMO in the same month of the preceding calendar year. TMO shall reconcile the payments on a quarterly basis (April, July, October, and January) and shall make the necessary adjustment on the next monthly payment. TMO shall provide to the City a complete and accurate accounting of the DGR calculations of the preceding quarter (the reconciliation). Such accounting shall include, but not be limited to, a ticket manifest in a form agreed to by the Parties detailing the amount and nature of Paid Admission Tickets issued by TMO for applicable TMO Home Baseball Games. 2. TMO Special Event Fees. In consideration for the right granted to it by the City to conduct TMO Special Events, TMO will pay to the City the following percentages of gross Food and Beverage Concessions, less sales tax paid by TMO on such revenue: No tickets sold 7.5% Tickets$5.00 or less 7.5% 45 Tickets $5.01 or greater 5% In addition to the above, a ticket surcharge shall be included in all ticketed TMO special events with a mutually agreeable price schedule. The ticket surcharge revenues shall be allocated to the stadium fund to offset capital improvement costs of the stadium. Ticket surcharge schedule: <$1-$5=no charge $5.01-$15=$1 per ticket $15.01 or greater=$2 per ticket All TMO Special Event Fees and ticket surcharges due to the City shall be due and payable on the same schedule, and with the same conditions, including accounting, as set forth for DGR in Section A.1 of this Article. 3. Luxury Suite and Clubhouse Sales. Annual TMO Luxury Suites. In consideration for the exclusive right to lease, license or rent the TMO Luxury Suites, TMO shall pay to the City twenty percent (20%) of all gross revenue generated from annual lease, license or rental of such TMO Luxury Suites. Clubhouse During TMO Home Baseball Games. In consideration for the exclusive right to lease, license, or rent the Clubhouse for TMO Home Baseball Games, TMO shall pay to the City an additional seven and one-half percent (7.5%)of all CTR generated from the license, lease, or rental of the Clubhouse for TMO Home Baseball Games. 46 Clubhouse for all non-TMO Home Baseball Games. In additional consideration for the exclusive right to lease, license, or rent the Clubhouse for non-TMO Home Baseball Games, TMO shall pay to the City ten percent (10%) of all Food and Beverage Concessions, less sales tax paid by TMO, generated at the Clubhouse for non-TMO Home Baseball Games, All Luxury Suite and Clubhouse revenue due to the City shall be due and payable on the same schedule, and with the same conditions, including accounting, as set forth for DGR in Section A.1 of this Article. 4. City Event Concession. As additional consideration for the rights granted to it by the City pursuant to Article VI above pertaining to exclusive concessions sales at the Stadium, TMO will pay to the City Twenty-Five Percent (25%) of all gross revenue, less sales tax, generated from its sale of Food and Beverage Concessions at City Events, except that TMO shall pay the City the rgreeater of the following for the "Crosstown Showdown:" a. Five percent (5%) of gross event food and beverage revenue less any sales tax paid by TMO on such revenue; or b. Three Thousand and 00/100 Dollars ($3,000.00). 5. Remainder. TMO shall retain exclusive ownership of all revenue not specifically identified in this Agreement that is generated from any source, whether or not now known, by the Team directly related to TMO Home Baseball Games or TMO Special Events. 6. Mutually Sponsored Events. TMO and the City shall share equally(50%150%) all MSENP. The Parties agree that, in order to monitor compliance with this 47 section, for up to one (1) year after the end of a Mutually Sponsored Event, they will preserve and make available to the other Party during regular business hours and at such time as may be reasonably convenient to the Parties, all financial records related to the Mutually Sponsored Event and calculation of MSENP. a. Reconciliation and Payment. The Parties shall meet as soon as practicable after the Mutually Sponsored Event with all necessary financial records to determine the amount of the balance of payments for those rights and obligations set forth in Article VIII (L)(3)&(4) (the reconciliation). If it is determined at the reconciliation that the Mutually Sponsored Event made a profit (MSNEP above zero (0) dollars), within sixty(60) days after the end of a Mutually Sponsored Event, TMO shall pay to the City the City's share of MSENP. If it is determined at the reconciliation that the Mutually Sponsored Event resulted in a loss (MSNEP less than zero (0) dollars), the Parties shall share in the loss equally and shall make necessary payments to the other party within sixty(60) days after the end of a Mutually Sponsored Event. 7. Minimum Guaranteed Payment. In no event shall the total of all fees required to be paid by TMO to the City pursuant to this Agreement be less than the Minimum Guaranteed Payment in any calendar year of this Agreement. In the event the total paid to the City is less than the Minimum Guaranteed Payment, TMO shall remit to the City within thirty (30) days sufficient additional funds to meet the Minimum Guaranteed Payment. 48 8. Audit of Records. In order to allow compliance with Paragraph A of this Article XIV to be monitored, TMO agrees that during the terra of this Agreement, and for up to one (1) year after the termination of this Agreement, it will preserve and make available to the City Finance Director one (1) time each calendar year during reasonable business hours and at such time as may be mutually convenient for TMO and the City: a. All of those financial documents and records related to the conduct of TMO Home Baseball Games that are prepared by or at the direction of TMO for the Midwest League, and National Association, and/or Major League Baseball; b. All financial documents and records related to the conduct of TMO Special Events; and C. All financial documents related to Food and Beverage Concessions. During such annual audit, if the City Finance Director can demonstrate, pursuant to Generally Accepted Accounting Principals, that TMO does not have sufficient liquid assets to pay the Minimum Guaranteed Payments as they become due, TMO shall secure and provide to the City a letter of credit or security and in the amount of the next Minimum Guaranteed Payment. Such letter of credit or security bond shall be drawn upon only if TMO is unable to pay the Minimum Guaranteed Payment when due. TMO shall continue to keep the letter of credit or security bond in place until TMO can demonstrate, pursuant to Generally Accepted Accounting Principals, that it has maintained for two (2) consecutive years sufficient liquid assets to pay the 49 Minimum Guaranteed Payments when due. The Parties agree that all documentation, data and information provided to the City pursuant to this Subparagraph is highly confidential and in no event, to the extent legally permissible, shall such documentation data or information be disclosed to any third party or become public record without the prior approval of TMO. At the City's request and expense, no more than once annually, the City may obtain an audit of DGR and all other revenue by a Certified Public Accountant agreed on by the City and TMO. B. City's Rights and Obligations. 1. Stadium Services at City Events. The City will pay to TMO the actual cost of the Operators of Stadium Services provided by TMO at City Events. Such payment shall be made within ten(10)days of the provision of such Stadium Services, 2. Remainder. The City shall retain ownership of all income and sources of income that are related to City Events or Stadium usage, whether or not now known, and that are not specifically granted to TMO herein, including but not limited to income from automated teller machines and pay telephones at the Stadium. ARTICLE XV. EQUIPMENT A. TMO's Obligations. At no cost to the City, TMO will provide all baseball related equipment that is typically provided by a minor league baseball club, including but not limited to batting cages, pitching machines and batting practice cages. In addition, TMO shall provide certain items of equipment necessary to fulfill its Stadium Service 50 obligations described herein. Such TMO-provided equipment is listed at Exhibit C. All such equipment shall remain the property of TMO. B. City's Obligations. The City, upon reasonable notice, will provide the use of certain heavy equipment and operators thereof to assist TMO in certain activities related to the Stadium.usage. In consideration for providing such equipment operator, TMO shall pay to the City, within thirty (30) days after such use, the City's actual cost of providing such operator. In addition TMO shall, in all respects, indemnify the City from all liabilities arising from such use provided that such liabilities are not the results of intentional or reckless acts or omissions on the part of the City or the equipment operator. Listed at Exhibit D is the heavy equipment that has been provided by the City. All such equipment shall remain the property of the City. ARTICLE XVI. COVENANTS A. TMO's Covenants. l. Taxes and Encumbrances. TMO shall pay promptly when due any and all personal property taxes imposed on its personal property located in the Stadium and any and all taxes which are the responsibility of TMO under the laws of the State of Michigan and City of Lansing, including any payment in lieu of taxes which may be assessed pursuant to Michigan Statutes. Except as to liens or other encumbrances related to the financing, installation or ownership of the Stadium's scoreboard, TMO shall not permit any mechanics liens or other encumbrances or liens to exist against the Stadium and shall within thirty(30) days of any such lien or encumbrance being 51 asserted against the Stadium as a result of action or inaction by TMO either cause the same to be released of record or obtain title insurance coverage satisfactory to the City over such lien and proceed diligently to contest the same in good faith. 2. TMO Home Baseball Games. TMO covenants and agrees that it will play all of its home baseball games at the Stadium whether such games be designated preseason, regular season,post-season, or exhibition games. In addition,TMO covenants to the City that TMO will cause at least fifty-five (55) Regular Season TMO Home Baseball Games to be played at the Stadium in each calendar year of this Agreement. 3. Membership in the Midwest League and National Association. TMO shall, during the term of this Agreement, abide by all rules and regulations of the Midwest League and of the National Association. Until transfer of TMO's franchise and assets, TMO agrees and covenants to the City that it will maintain membership in good standing with the Midwest League and National Association and their successors and assignees, and that it will not seek, authorize, or consent to the transfer of its franchise to an area outside Lansing, Michigan, without the prior written consent of the City or unless this Agreement is terminated pursuant to the terms herein. 4. Covenant Not to Transfer Franchise. TMO agrees and covenants to the City that it will not participate in any transfer or assignment of its franchise, name, goodwill, trademark and other contracts unless said transfer or assignment includes its interest under this Agreement. In the event of any such transfer or assignment of its franchise and other assets, including TMO's interest in this Agreement, which is approved by the National Association and the Midwest League, their successors or 52 assigns, the City will release TMO from its obligations hereunder upon the assumption of such obligations by the transferee or assignee. 5. Equal Employment Opportunity And Employment of Lansing Residents. TMO agrees and covenants to the City that it is presently and will continue to be an equal opportunity employer and at all times shall comply with the laws and regulations that prohibit discrimination. Further, TMO agrees and covenants to the City that it will use its best efforts to retain the services of residents of the City of Lansing in all Stadium Services performed pursuant to this Agreement and will attempt to have at least seventy-five percent(75%) of TMO's seasonal staff be residents of the City of Lansing. 6. Stadium Name. TMO agrees and covenants to the City that in all communications referring to the Stadium it shall use the full name of the Stadium. 7. Use of Matters Subject to Copyright. Should TMO, its agents, employees, invitees or guests use or allow the use of any composition, work or material, TMO agrees to indemnify and save the City harmless from loss, damage or expenses arising from any claim of infringement of such copyright or the use of unlicensed composition, work or material. 8. Operation of Stadium Souvenir Stores. TMO agrees and covenants that, without the prior approval of the City and for the term of this Agreement, it will not operate any other store in the City that sells Novelties and Souvenirs in competition with the Stadium Souvenir Stores, 9. Prohibition Against Dangerous Materials and Substances. TMO agrees not to bring into the Stadium any material, substance, equipment or object that is likely to 53 endanger the life or to cause bodily injury to any person within the Stadium, or which is likely to constitute a hazard to property therein without the approval of the City. The City shall have the right to refuse to allow any such materials, substances or equipment to be brought into the Stadium and the further right to require its immediate removal therefrom if found thereon. C. City's Covenants, 1. Stadium Compliance. The City represents, covenants and warrants that throughout the term of this Agreement the Stadium shall be constructed and maintained in compliance with (i) all applicable building, health, safety, bidding, procurement, traffic and zoning ordinances, applicable standards for streets and roadways (if any are constructed by the City in connection with the Stadium), and covenants and restrictions, if any, which apply to the Stadium property upon which the Stadium is located, and(ii)all applicable Environmental Laws. 2. Environmental Indemnification. In the event of any claim, suit, litigation, governmental, administrative or private proceedings or action against TMO with respect to or concerning in any way any underground storage tanks, Hazardous Materials, water or air pollution or contaminants generated at or placed on or near the Stadium by the City or its employees, agents, representatives, vehicles or equipment,or with respect to or concerning any violation of Environmental Laws by the City or its employees, agents, representatives, vehicles or equipment, the City shall indemnify and hold harmless TMO from all costs, damages, attorneys'fees, expert fees, clean-up, response, removal and remedial costs, and all other costs, fees, and expenses relating thereto. 54 ARTICLE XVII. INDEMNIFICATION AND INSURANCE A. Indemnification. 1. Indemnification of the City by TMO. TMO agrees to indemnify and hold harmless the City and its respective officers, directors, duly authorized agents and employees from any and all claims brought for personal injury, death,property damage and any other losses, damages, charges or expenses, including attorneys fees, which is in connection with, or by reason of any act, omission or negligence of TMO or its duly authorized agents, or any breach of this Agreement, in connection with TMO's activities pursuant to this Agreement. 2. Indemnification of TMO by the City. The City agrees to indemnify and hold harmless TMO and its members, officers, directors, duly authorized agents and employees from any and all claims brought for personal injury, death, property damage and any other losses, damages, charges or expenses, including attorneys fees, which is in connection with, or by reason of any act, omission or negligence of the City or its duly authorized agents, or any breach of this Agreement, in connection with the City's activities pursuant to this Agreement. B. Insurance Policies. 1. Insurance Required of TMO. TMO shall obtain and maintain throughout the term of this Agreement, public liability coverage including personal injury liability and contractual liability; if on a commercial general liability form, the limit per occurrence shall be One Million Dollars ($1,000,000) and an aggregate of Three Million Dollars ($3,000,000) combined single limit (CSL) per occurrence and 55 include bodily injury and property damage liability; automobile coverage with liability limits of One Million Dollars ($1,000,000) combined single limits (CSL) bodily injury and property damage per accident; and workers compensation coverage to protect TMO's permanent and temporary employees. TMO will name the City as additional insured on the public liability policy and provide certificates of all insurance or original policies as they shall be on file prior to the beginning of the term of this Agreement. Insurance coverage required herein shall be famished by a company approved by the insurance commission of the State of Michigan. 2. Insurance Required of the CitX. Throughout the term of this Agreement, the City shall procure and pay for insurance, with a commercially acceptable insurance carrier, for the full replacement value of the Stadium, at its cost and expense, against damage destruction, from whatever cause. The City, its respective agents, successors and assigns, shall also name TMO as an additionally insured on all property and liability insurance. ARTICLE XVIII. DESTRUCTION OF STADIUM A. Partial Destruction. If the Stadium is wholly or partially destroyed, the City shall, at its expense,promptly commence and diligently complete the restoration of the Stadium to the same condition as immediately prior to the destructive event, reasonable wear and tear excepted. All repair activities shall be timed and organized in such a 56 manner to facilitate TMO's ability to play the TMO Home Baseball Season games at the Stadium to the degree feasible. B. Reduction in Payment. Should the Stadium be unavailable for any TMO Home Baseball Games as a result of the destruction or other limitation in the use of the Stadium, the payments due the City shall be reduced proportionate to that limitation of use. In the event the City's insurance coverage provides TMO with reimbursement for lost profits,payments due the City shall not abate,but will continue uninterrupted. C. Assistance of the City in Locating a Temporary or Permanent Alternate Facility. If the Stadium becomes unavailable on a temporary basis by reason of either the partial destruction of the Stadium or the repair or restoration of the Stadium, or for any other reason, the City shall utilize its best efforts to assist TMO in locating an adequate temporary facility within the City of Lansing. D. Development of the Outfield Development Parcel and Stadium Improvements. Development of the Outfield Development Project and Stadium Improvements, as outlined in the CDA, along with any interruptions in availability of any portion of the Stadium in order to accommodate the development, shall not be a violation of this Agreement, and TMO shall not be entitled to reduce any payments otherwise due to the City as a result of the Outfield Development Project or Stadium Improvements, or the interruption of the use of all or any part of the Stadium. This specifically includes any anticipated or unanticipated interruptions in the availability of any portion of the Stadium to accommodate the Outfield Development Project or Stadium Improvements. 57 ARTICLE XIX. CONDEMNATION In the event that any portion of the Stadium is taken from the City pursuant to any right of eminent domain exercised by any governmental entity or pursuant to any governmental order and such taking renders the Stadium unfit for its intended purpose, TMO shall receive a portion of any award granted with respect to such taking, to be determined by mutual agreement of the Parties. TMO shall also have the independent right to make a claim against the condemner for and retain any award based thereon for the reasonable value of lost profits, improvements made to the Stadium by TMO and for the expenses, attorney fees and costs incidental to relocating from the Stadium including,but not limited to,the lost value of this Agreement. ARTICLE XX. FORCE MAJEURE TMO and the City agree that with respect to any services to be provided, payments to be made, or action to be taken by either Party during the term of this Agreement, the Parry required to furnish or perform the same shall in no event be liable for failure to do so when prevented by any cause beyond the reasonable control of such Party such as strike, lock-out, suspension of play of baseball,breakdown, accident, order or regulation of or by any governmental authority, the National Association, Midwest League or any entity controlling either the National Association and/or Midwest League, or failure of supply, or inability, by the exercise of reasonable diligence, to obtain supplies, parts, or employees necessary to furnish such services, or because of war or other emergency, or for any cause due to any act or neglect of the other Party hereto, or in servants, agents, employees, any assignee, or successor in interest to such other Party. The time within which 58 such services,payments, or actions shall be performed or rendered shall be extended for a period of time equivalent to the delay of such cause. ARTICLE XXI. REQUISITE ALCOHOL PERMITS The City and TMO will use their best efforts and will take all steps necessary to obtain and maintain all permits, licenses and permissions as may be required to permit alcohol to be sold by TMO at the Stadium. Once such permits, licenses and permissions are obtained, TMO will fully comply with all federal, state and local laws, ordinances and statutes relating to the dispensing of alcoholic beverages. ARTICLE XXII. ASSIGNABILITY AND TRANSFERABILITY The rights and obligations created by this Agreement are exclusive and shall not be transferred or assigned except by written agreement by both TMO and the City. TMO covenants and agrees that it will not assign, transfer, or sublet this Agreement without the prior written consent of the City with such consent not being unreasonably withheld. Notwithstanding the above, the City may assign this Agreement for administrative and operational purposes to an authority or authorities to be created under Michigan law. The Parties agree that the assignee of the City, if such an assignment should be made, shall be able to enforce the provisions of this Agreement pursuant to such assignment without the further consent of the City. 59 ARTICLE XXIII. TERMINATION UPON DEFAULT In addition to the termination provisions of Article 111, in the event that either Party hereto shall otherwise materially breach, violate or fail to fully perform any provision contained in this Agreement, the non-breaching Party may upon ninety (90) days written notice thereof, terminate this Agreement; provided, however, that the defaulting Party shall have the right and opportunity to cure the default within said ninety (90) day period or if such breach, violation or non-performance cannot be cured within a ninety (90) day period, to continue diligently and in good faith to effect such cure within such period, provided that, in no event shall such opportunity to cure exceed one hundred eight (180) days after receipt of such notice. In the event that such breach, violation or non-performance is not cured within said ninety (90) day period or any authorized extension thereof, then, this Agreement shall terminate upon the expiration of such period and the non- breaching Party shall thereupon have the right to exercise such additional rights or remedies as they may have by law. ARTICLE XXIV. DEVELOPMENT OF THE OUTFIELD DEVELOPMENT PARCEL AND STADIUM RENOVATIONS A. Redevelopment of the Outfield Development Parcel. The Parties acknowledge and agree that the Outfield Development Parcel is going to be developed into a mixed use development pursuant to the CDA. TMO agrees all changes to the Stadium or disruptions in use of the Stadium which are made in order to comply with the CDA shall not be considered a breach of this Agreement by the City. In the event the development of the Outfield Development Parcel is not completed, partially completed, reconfigured, 60 or abandoned, as required by the CDA and ancillary documents, for any reason, it shall not be considered a breach of this Agreement by the City. B. Implementation of Stadium Improvements. TMO acknowledges and agrees that the Stadium Improvements will be done in accordance with the CDA. TMO agrees all changes to the Stadium or disruptions in use of the Stadium which are made in order to comply with the CDA shall not be considered a breach of this Agreement by the City. C. Stadium Improvements. The Stadium Improvements shall include those items the Parties mutually agree upon during the Due Diligence Period as described in Section (I)(1)(B)(i) of the CDA. The Stadium Improvements shall include the construction of the Banquet Center, field level components on the Development Parcel, and picnic support areas in the right field area. The City will cause the Stadium Improvements to be completed in accordance with the Master Schedule. D. Substantial Completion of Stadium Improvements. To the extent practicable, all Stadium Improvements (except the playing field) will be Substantially Complete, as that term is defined in the CDA,prior to the first TMO Home Baseball Game in 2015. E. Coordination of Efforts. The development of the Outfield Project with the Stadium Improvements will require substantial coordination of efforts between the City and the developer. TMO agrees that it will not object to or withhold any reasonable requests for access to allow for completion of the Stadium Improvements or Outfield Project within the Master Schedule timeframe. F. Default, Breach, or Termination of the CDA. Notwithstanding Article XXIII, a default, breach or termination of the CDA shall be handled as follows: 1. Default by Developer or City. If the default, breach, or termination is caused by the 61 Developer or City,then the City at its sole discretion, may terniinate this Agreement, and revert back to the Stadium License, Lease, and Service Agreement executed on October 24, 2005, and all amendments thereto, assuming its term has not yet expired. In addition, the City may at its sole discretion elect not to expend any remaining portion of the Renovation Funds. Should the City elect to continue with this Agreement,then the Minimum Guaranteed Payment will be adjusted as follows: a. In the event the City has spent 25% or less of the Renovation Funds, the Minimum Guaranteed Payment shall be adjusted to One Hundred Thousand and 00/100 Dollars($100,000.00). b. In the event the City has spent more than 25% and less than 50% of the Renovation Funds,then the Minimum Guaranteed Payment shall be adjusted to Two Hundred Fifty and 00/100 Dollars($250,000.00). C. In the Event the City has spent 50% or more of the Renovation Funds, then the Minimum guaranteed Payment shall remain at Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00). 2. Default by TMO. In the event of a default, breach, or termination by TMO, the City will have all rights and remedies as set forth in Article XXIII as if TMO breached this Agreement. In addition, if the default,breach,or termination is caused by TMO, then the City at its sole discretion may: a. terniinate this Agreement in which event the Stadium License, Lease, and Service Agreement executed on October 24, 2005, and all amendments thereto, assuming its term has not yet expired, shall be I full force and effect; and/or b. elect not to expend any remaining unspent portion of the Renovation Funds. 62 If the default, breach or termination of the CDA by TMO occurs after December 31, 2020, at 11:59 PM, the City shall have the right to evict TMO from the Stadium upon ninety(90) days written notice thereof, unless a new lease is negotiated by the City and TMO. The City may also assert all rights remedies against TMO under this Agreement. G. Termination of DCA Prior to Master Closing. Notwithstanding the foregoing, in the event the CDA is terminated by any party to the CDA prior to Master Closing, then the Parties shall revert back to the Stadium License, Lease, and Service Agreement executed on October 24, 2005, and all amendments thereto, for its remaining term, and this Agreement shall be null and void. H. Delay of Outfield Project. In the event the entire Outfield Project described in the CDA is delayed for one (1) calendar year pursuant to the terms of the CDA, then the Minimum Guaranteed Payment shall remain at One Hundred Thousand and 00/100 Dollars ($100,000.00) for that calendar year, and shall return to Three Hundred Fifty and 00/100 Dollars($350,000.00)the next calendar year. I. CDA Rights and Remedies. Nothing herein impairs the City's rights and remedies under the CDA. ARTICLE XXV. MISCELLANEOUS A. Anti-Discrimination. TMO shall not discriminate in any manner on the basis of gender, marital status,race, color, creed,handicap, height,weight or national original with respect to any applicant or employee, and shall conform in all respects to the pertinent provisions of federal, state or local laws, ordinances, rules and regulations of employment practices. 63 TMO further agrees that in serving the public, its employees shall not, on the grounds of sex, marital status, race, creed, handicap, height, weight, color, age or national origin, discriminate or permit discrimination or refuse to serve a person or group of persons in any manner prohibited by federal, state or local laws,rules, ordinances and regulations. B. Governing Law, This Agreement shall be construed under and in accordance with the laws of the State of Michigan. C. Entire Agreement. This Agreement constitutes the final, complete and exclusive written expression of the intent of the Parties with respect to the subject matter hereof which will supersede all previous verbal and written communications, representations, agreements, promises or statements. D. Authori13,. TMO and the City, respectively, each represent that the individuals acting as signatories to this Agreement have the authority to bind the TMO and the City and that this Agreement, when properly executed by both Parties, will constitute a valid and binding agreement, enforceable in accordance with this terms. E. Costs and Attorney Fees. The Parties hereto agree to pay all expenses incurred by the other in enforcing the provisions of this Agreement, including but not limited to attorney fees, costs and expenses. The Party prevailing in any litigation arising out of any dispute concerning this Agreement shall be entitled to recover all expenses incurred, including without limitation,reasonable attorney fees. F. Mutual Dependency and Severability. All rights and duties contained in this Agreement are mutually dependent on and one cannot exist independent of another,provided that if any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, and if such holding does not affect the 64 ability of TMO to perform and have access to the Stadium as provided for herein, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision was not contained herein. G. Notices and Addresses. All notices required to be given under this Agreement shall be given by certified or registered mail, addressed to the proper Party to the following addresses, or at such other address as may be subsequently given pursuant to this Section and shall be deemed given when deposited in the U.S. mails,postage prepaid: IF TO TMO: MR.TOM DICKSON TAKE ME OUT TO THE BALLGAME LIMITED LIABILITY COMPANY 1603 Orrington Ave., Suite 1625 Evanston, Illinois 60201 IF TO THE CITY: THE CITY OF LANSING CITY ATTORNEY 124 W. MICHIGAN AVENUE 5TH FLOOR LANSING,MI 48933-1694 H. Amendment, Modification, or Alteration. No amendment, modification or alteration of the terms of this Agreement shall be binding unless in writing, dated subsequent to the date hereon and duly executed by the Parties herein. 1. Rights and Remedies Cumulative. The rights and remedies provided by this Agreement are cumulative and the use of any right or remedy by either Party shall not preclude or waive its rights to use any or all other remedies. Said rights and remedies are given in addition to any other rights the Parties may have by law, statute, ordinance or otherwise. 65 I The Essence. Time is of the essence for this Agreement. K. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,but all such counterparts together shall constitute but one and the same instrument. L. Headings Only for Reference. The titles of articles and sections of this Agreement are for reference purposes only and shall be of no binding effect. M. Valid Illinois Limited Liability Company. TMO represents that as of the date of the execution of this Agreement it is organized and in good standing under the laws of the State of Illinois, that it is duly authorized to enter into this Agreement and has taken all requisite corporate action to obtain such authorization and that no consent of or notice to any other individual, private or public entity or governmental authority is required in connection with the execution, delivery and performance of the Agreement. N. Prohibition Against Food and Beverage Being Brought Into the Stadium. The City shall post signs in appropriate locations in the Stadium which shall prohibit patrons from bringing any food,beverages,beverage containers or alcoholic beverages into the Stadium. O. Status of Parties. Parties hereto shall be deemed and construed as independent contractors with respect to one another for all purposes and nothing contained in this Agreement shall be determined to be created a partnership or joint venture between TMO and the City with respect to TMO's activities conducted at the Stadium pursuant to the terms of this Agreement. P. Waiver. The waiver by either the TMO or the City of any default or breach by the other Party of any of the provisions of this Agreement shall not be deemed a continuing waiver or 66 waiver of any other breach by the other Party of the same or another provision of this Agreement. Q. Improvements. TMO shall make no improvements in the Stadium without the prior approval of the City. R. Waste or Nuisance. TMO shall not cominit or permit any waste on or about the Stadium during the term of this Agreement nor shall it maintain, commit or permit the maintenance or commission of any nuisance on or about the Stadium or use the Stadium for any unlawful purposes. S. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and assigns. T. References to the City. All references to the City in this Agreement shall be deemed to also be references to such officers or employees or other designees of the City as may be appropriate to implement the terms of this Agreement. U. Exhibits. All exhibits attached to this Agreement are incorporated into and are a part of said Agreement as if fully set out herein. V. TMO's Property Loss and Damag. Nothing herein shall be construed to create a bailment relationship between the City and TMO or the Club concerning any property brought on the premises of the Stadium by TMO or the Club unless such property is delivered into the possession of the City. W. Employee Status. It is understood and agreed that no agent, servant or employee of TMO or the Club or any of its subcontractors shall under any circumstances be deemed an agent, servant or employee of the City, and that no agent, servant or employee of the City shall be under any circumstances deemed an agent, servant or employee of TMO or the Club. 67 X. Judicial Relief In The Event Of Termination Actions. Anything in this Agreement to the contrary notwithstanding, neither Party shall have the right to terminate this Agreement before the expiration of the period required for the giving of notice before termination, if the defaulting party in good faith commences a judicial proceeding to contest the existence of any such plain default and uses reasonable diligence in prosecuting such action and complies with the final judgment of the court in such action; but nothing herein shall prevent a court from granting such protective orders, injunctions and interlocutory judgments as might otherwise be appropriate. Y. Property Remaining in the Stadium After Termination or Expiration of the A egr ement. Any and all property belonging to TMO, or anyone claiming through or under TMO, which may be found on the premises after termination or expiration of the Agreement may be handled, removed or stored by the City at the risk and expense of TMO and the City shall be responsible for the preservation or the safe-keeping thereof. TMO shall pay to the City any and all expenses incurred for such removal and all storage charges. Z. Dispute Resolution Review Board. The Parties agree that in the event they are not able to mutually agree on the annual CIP plan described in Article IV, Section (A)(2)or Article IV, Section(C), then they will submit their dispute to mediation. 1. Review Board. The review board shall consist of three (3) parties: the Chief Executive Officer LEPFA or his designee, a representative of TMO or its designee, and a third representative (the "Neutral Representative") to be agreed upon by both Parties. In the event the Parties are not able to mutually agree on the Neutral Representative within 30 days of written notice of a dispute, the Parties shall each select three (3) names from the Ingham County Neutral Case Evaluators list 68 (Commercial Panel) and select one of those six (6) names randomly. LEPFA and TMO may be assisted or represented by legal council at any stage of the proceeding. 2. Neutral Representative Compensation. The neutral representative shall be paid out of available annual CIP funds, and her compensation shall be a charge against those funds. 3. Time and Location. The dispute hearing will be heard at the Lansing Center at a time and date established by the Neutral Representative, unless the Parties agree on a different location. The Neutral Representative may adjourn the proceedings upon good cause shown. 4. Issues Presented. The review board shall only hear those issues that are presented in writing, in advance of the hearing, and shall only hear issues as authorized in Article IV, Section(A)(2) and Article IV, Section(C). 5. Decision has No Binding Effect. If the representatives are not able to resolve their dispute at the dispute hearing, the Neutral Representative shall make his determination in writing. The Neutral Representative's decision shall have no binding effect on the Parties. AA. Survival. The indemnification, hold harmless, and release of liability from the 2005 Agreement remain in full force and effect and survive the termination of that agreement. 69 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. TAKE ME OUT TO THE BALLGAME CITY OF LANSING LIMITED LIABILITY COMPANY By: By: Tom Dickson,Managing Member Virg Bernero, Mayor Approved as to form only: I hereby certify that funds are available In account No. : City Attorney City Finance Director 70 EXHIBIT A TMO MAINTENANCE LIST i Exhibit A Maintenance Plan Lugnuts Responsibilities 1) HVAC — Lugnuts will execute duties outlined in HVAC service contract commissioned by city. 2) Concessions Equipment — Lugnuts will clean cooler vents, condenser coils , exhaust hoods, grills and equipment. Additional maintenance beyond Exhibit A may be necessary per Concessions Equipment service contract. 3) Painting — Lugnuts are responsible for touch up painting throughout entire ballpark. Touch up painting to include nicks, scratches, etc. that occur through normal use at ballpark. Lugnuts will blend in touch up painting with existing paint. (From time to time due to fading and use, various areas of the ballpark will need to be repainted by city). 4) Carpeting — Lugnuts will spot remove stains and vacuum carpets after each event. Lugnuts will extract all carpeting on a monthly basis in season or as needed. 5) Lighting — Lugnuts will replace light bulbs throughout park on a weekly basis or as needed. City and Lugnuts will monitor lighting during monthly walk throughs. 6) Fire Extinguisher Inspection — Lugnuts will conduct and pay for annual inspections. Area Description Restrooms Clean urinals, toilets and mirrors Concourse Sweep and mop Suite Level Restock paper towel, toilet tissue, and hand soap Clubhouses Offices Inspect and repair restrooms for broken dispensers & lighting damages Scrub tile/flooring with machine the rout) Suite Level Mop stairs Clean windows in suites Clean all glass in hallways Clean exterior windows in front of building Polish sinks in suites Clean walls Ceiling Tiles — Paint or replace, tiles provided by city Seating Bowl Clean after game Rinse seating bowl down Clean out drains at bottom of sections (to prevent flooding in seating areas Power washed and detailed as needed. ii Seats— Replace and/or tighten bolts and screws as needed Concourse/Hallways Clean and Wash Power washed Entrance gates are power washed and/or spotted with a deck brush and soapy water Entrance gates are mopped Clean public areasand drinking fountains Scoreboard Lugnuts 100% res onsible for scoreboard. Field Lighting Purchase light bulbs Grounds Cut the grass in front of stadium Pick up litter Pull weeds in cracks of concrete (spray to prevent grass again) Maintain the sidewalks inside and out including snow removal (to create safe walkway) Pick up all trash along fence line Edge and cut grass areas on the side Water flower beds Trim trees Maintain flower beds (city to provide allproduct) Playing Field Cut grass Water infield Fertilize 4-6 times (April — October Nail drag infield for softer playing surface Monitor irrigation (to ensure all areas are watered properly) Edge field Sprinkler heads are adjusted by Lugnuts (heads are purchased through LEPFA, Lugnuts are responsible for turning on and shutting down sprinkler system for field) Shop Area Clean ramp — including snow removal as needed Clean Shop — mop and sweep Organize tools Put away materials stored in shed Keep inventory of clay and turface Clubhouse Sweep and mop lobby Clean showers Power wash showers to remove mildew iii Elevators Maintain including mop, clean stainless steel Change lights Dugouts Sweep out and empty trash Vacuum out sump pump pit - Wash out inside dugout and dugout tops Office Area Empty trash in all offices Vacuum Sweep and mop kitchen and rest room Carpets professionally cleaned annually__ iv Food Service Maintenance Schedule Area Description Kitchen Filter deep fryer oil Clean pizza ovens Wash floor with anti-slip cleaner Replace deep fryer oil Wash inside of exhaust hoods annual) Pour one cup of descalerinto dishwasher and run through wash cycle Clean inside of convection oven and hot boxes Take covers off of floor drains and remove drain basket. Clean debris from basket and replace. Wash inside door and ice deflector of any mold or build u Remove and clean air intake ceiling grills Concession Stands Clean small concession equipment Clean counter tops Clean pop machines Flush pop machines with bleach and hot water Clean sink Sweep and mop all floors Filter deep fryer oil in stands Clean inside of ice machines for mold Clean floor with anti-slip cleaner Clean fridge condensers of dust and grease v Change deep fryer oil Clean and sanitize ice machine bins before ice machine starts u Clean beer lines internal) Clean exhausts stem and hoods Check beers stem coolant levels Remove and clean air intake ceiling grills Ports Clean all surface area including cabinets Clean Pepsi machine windows and tracks Sweep and mop floors Break down all boxers and put in front of port with closed garbage bag Clean ports inside and out Clean internal beer lines Clean inside of popcorn machine with hot water (wipe out kettle inside and out. Wipe lip off top and bottom Wipe up any leaking oil spills Clean popcorn machine cabinet inside and outside Clean sno-kones machine with hot water—wipe off top and make sure machine is completely dry Philly Steak Port Clean grills Cover grill with foil when cool Empty grease trap Clean sides, back, and underside of grill with hot water Clean ice cream stand freezer with water(leave NO ice cream on any surface) Clean scoops and replace Clean floor s Pour hot water down tap drain and clean window vi Clean nacho machine inside and out Take apart inside of nacho machine and clean all parts Pour hot water and bleach down beer tap drains and empty overflow Rinse out drain bucket and empty, put back at port Turn off CO2 tank Open and clean cotton candy machines Soak spinner head in hot water to remove sugar articles Picnic Venues Clean grills, counters, shelves, coolers Wash and De-grease grease traps Wash dishes Power wash tables, serving areas and awnings Mop floor Clean sinks, shelves, floors and entire bar area Clean all machines— Cheese, coffee, blender Drain level in hot well and ice well should be pulled. Put bucket under drain to capture water Warehouse Clean and mop Pantry Mop floor Use soap & water/disinfectant to wipe down entire pantry area, including tables, shelves and equipment Clean inside of ice maker Disassemble and clean cheese machine, coffee maker and hot chocolate machine vii Cooler Wipe down shelves using soap & water Suites Clean refrigerators using soap & water Wipe out sink & countertops viii EXHIBIT B STADIUM OPERATION PLAN ix Exhibit B Operations Plan Customer Service Game Day Staffing Schedule Area Description Time Line First Aid (Sparrow) 1 Nurse and 1 Tech Each Game 2 Nurses and 1 Tech Each GSSD Security - 1 Supervisor and 1 Guard 0-2000 fans 3 Supervisors and 6 Guards Thursdays 1 Supervisor and 2-3 Guards 2001-4000 2 Supervisors and 4-6 Guard 4000 + 3 Supervisors and 5 Guards GSSDs Customer Service 2 Ticket Takers 0-2000 fans (Job descriptions 1 Customer Service Attendant attached) 1 Suite Attendant 1 Elevator Attendant 3 Concierges 1 Host or Hostess and 1 Gate Attendant (if Tailgate Terrace) 1 Host or Hostess if Gasoline Alley) 4 Ticket Takers 2001-4000 1 Customer Service Attendant fans 1 Suite Attendant 1 Elevator Attendant 5 Concierges 1 Berm Attendant 1 Host or Hostess and 1 Gate Attendant (if Tailgate Terrace) 1 Host or Hostess (if Gasoline Alley) 6 Ticket Takers 4000+ fans 1 Customer Service Attendant 1 Suite Attendant 1 Elevator Attendant 8 Concierges 1 Berm Attendant 1 Host or Hostess and 1 Gate Attendant (if Tailgate Terrace) 1 Host or Hostess if Gasoline Alley) Operations Plan Area Description x Maintenance (in- Monitor all restrooms including toilet paper, paper game) towel, trash, floors, hand soap by porters and maids Monitor wet spills, dry spills and all trash containers on concourse Fireworks Safety Set up 12 pieces of bike barricade and 12 pieces of plywood for fans safety or as directed by Fire Marshal; Set up 25' of rope and stanchion away from barricades so no one can cross line Monitoring company is contracted to monitor all fire systems. If a fire, they call Lugnuts/LEPFA direct cell # in order on list Alarm Update employee codes into system Main office Alarm monitoring contractor monitors all office and Cash room alarmed areas and contacts Lugnuts management to Food Service Office report alarm Retail Alarm contractor changes system batteries 3`d Base Store Ticket Office TV Network Suite Level Channels are set for menu created for each suite Gates Gates open 1:15 prior to scheduled first pitch. Gates are swung open in the 6th inning (except on fireworks nights and Thirsty Thursdays, not swung at aI10 Gates are locked approx 30 minutes after game ends Smoking Fans wishing to smoke receive an exit stamp on their hand, leave park to designated smoking area, and re-enter per stadium/team policy. Anyone seen smoking in park is asked to put out their cigarette and informed of policy. Communication All full time Lugnuts employees and food service managers have hand held communication systems devices. General Manager, Operations Manager and Director of Food Service have multiple channel radios or handheld communication devices with ability to contact security. Alcohol policy (Attached) Xi xii EXHIBIT C TMO PROVIDED EQUIPMENT Exhibit C . i EXH[BIT C 'L' O PROYIDED EOUIEMENT Te= area laundry equipment First Aid area furniture and equipment (including supplies and stretcher) Security Roam furniture and equipment American flag Batting cage Pitcher's screen Infield screens 1�ine chailcer Pitching rubbers Bases Home plates Field tarps Reel-type and rotary-type hand-powered nhowers Power edger Gas powered weed eater Shop-Vac Shovels, hose, rakes Squat-gees, mops, mop buckets, brooms Wheel barrels Hand clippers Toilet plungers and snakes Pitching machines Miscellaneous screens, bats, balls This Exhibit C may be rnodified from time-to-time by TMO by providing a copy of the revised Exhibit to the City,with such revised exhibit bei«g subject to the approval of the City, with such api3yoval not heing unreasonably withheld. s s EXHIBIT D CITY PROVIDED EQUIPMENT Exhibit D EXHIBIT D �I'1'lr PR[lV}��D�FQ�J1PMEl�F?' Sod cutter • • Rototilter• Cherry picker Air compressor Palate jack Forklift Aerator Roller for field Pin spiker Top dresser This Exhibit D may be modified rrnsn time-to-time by mutual agreement of the City and TMO. EXHIBIT `rE°' TO STADIUM LICENSE, LEASE, AND SERVICE AGREEMENT (2014) THE OUTFIELD DEVELOPMENT PARCEL EXHIBIT B Sketch of Survey-.- 4 My Garage Forest :H.44 Acres 0 W r - b � 0 S 8532'00't: � 13.3a' fJ92H'59' E S QG3p'pQ"9Y 1824' 5 OQ'3Q'00'Yl 1.FJ6" 032'00'E 5 44346a E E4'22'59' E a.44 20.14 Y ± e 2 y N as'zs'sa` 9$7' J iwsz'on" Stadium Raraal 9�e4 :h8.90 Aeree a 0 rd x ul Gf�APHI� SCi�LE t r m as �m mo a 1 %MCH IWFT F s 3seiloa 1� T 40.9 7W R 4ar78'3Q` E F Yidh1$arl Avenue Lfn6 _ 57-7$ a r E/.1'1 1/4 ct aTfi " Cbmt Lansa� to nuie gnu: 4/W2014 melon 1E BRIM- need Rae; T 4H.R 2W n 9wner f)rawre mdt +r Addmao; 5Q3 E W.Wgvn Ave checked w LmIe1n ,#N 48912 Job 11~ 2M2-51Si Date of Raid 9uvex NA $WI4P t'a 140' Y 47Q2-Q6amT Drive B yflvronce glas�"e' EMU%IN45516 pc574.=62 0 t 5742M717 02�xJN-MR1�41RxM•Id x I i I Legal description of the outfield development lot Sheet 1 of 1 I i A part ofthe.Northeast Quarter of Section 16,Township 4 North, Range 2 West,City of I Lansing, Ingham County,Michigan, and being-more particularly described as follows: Commencing at the East Quarter corner of said Section 16, Township 4North, Range 2 West;thence North 89°25'42" West 552.32 feet along the cast-west quarter line of said Section to the extended west boundary of Larch Street; thence North 00°38'30" East 57.75 feet to the intersection of the north boundary of Michigan Ave and said west boundary of Larch Street; thence along said west boundary the following three courses: North 009890" East 419.04 feet; thence South 89°29'59" East 9.87 feet; thence North 00°30'01" East 172.92 feet being the paint of beginning of this description; thence North 89°29'59" West 8.63 feet to the outside edge of the outfield wall; thence along said outside edge the following eight courses:North 44°30'00" West 20.14 feet; thence North 00°30'00" East 1.86 feet; thence North 44°30'00" West 83.97 feet;thence North 00°30'00" East 16.24 feet; thence North 44°30'00" West 80.53 feet; thence South 8913229" West 59.79 feet;thence South 73150'23" West 185.06 feet; thence South 34°09'17" West 119.87 feet;thence North 89°32'00"Nest 9.44 feet to the east boundary of Cedar Street;thence along said east boundary the following three courses: North 00°28'00" East 132.86 feet; thence South 89132'00" East 13.32 feet; thence North 00°35'45" East 11.1.35 feet; thence South 89°21'54" East 429.29 feet to the west boundary of Larch Street; thence along said west boundary the following three courses. South 00°38'30" West 151.77 feet;thence South 89029'59" East 9.23 feet; thence South 00°30'01" West 97.08 feet to the place.of beginning and having an area of 1.43 acres, more or less. i� I 1 I Prepared for: Lansing Lugnuts Stadium Renovation By: Mikel Currier,PS Firm: !ones Petrie Rafinski Date: April 22,2014 Job Number. 2012-5081 II:120 t 2 Projects120[2-50811SUXLegal Exhibit A of outfield developmet lot.doc EXHIBIT F TO STADIUM LICENSE, LEASE AND SERVICE AGREEMENT (2014) PARKING LOTS t i f1 LANE I NG � a o a a C T E R -0 p a a a NORTH LOT 19 i t MV���wlvi LOT 20 LOT 21 MT." "I 356 VISIT.011 PARKING SPACES ' LOT 374444 11 HANDICAPPED PARKING SPACES 367 TOTAL SPACES PG: 226 G:\G.aCDG1EGD\PHS-1FALLITY\PLANS\I-.4t•DGEfJT.6GD ] � ] � ] lz f LLI � � . < ` b z » 0dD 2 g � . | < ( \ to > CDrs 0 z \ 0 § > OIL m_ E w > @ Q z Kzi < u . _j 2 . ) � { ����A������»� • � k IL k. | § , —lob n | % � | � ( { ! ! � - - J J z 4. $v. LU IL y o � 4 n LU Q LU ` LL Co o f 0 ' OD rJ o " ' R rr IC) c� � z w a Ua ❑ J 7 co U-1 LL- Lu LY ' ti5 4/ •�Y V;+ 4 1 ro �f N N 4 i LOT 49 � (SPARTAN INN LOT) 4■ � N J' 81 TQTAL SPACES U r =:W �a �J U - I Yti'•j{-w _ �;� i. �z' zY 3:�atr�,, .k''�•rr• 18' tk;; G'``���'�,.iS..i .j. pit+. KALAMAZOO ST. I SCALE 1FS6 f PC• 228 G\CAMS\C{0'*PHIL\FACIL.ITY\PLAfr.\,LCTQ9.GM I �1 e „ --C•`�x#. ,,,,24r�x 3 t e�'c„t,, _ ,� '-� -pry+.- I c `. ""--- ec��•• - .yam -. 7r�� a� l�T � k: k x i kse _{;r'" •r _ i r � k ?�"�3 rp ^y 1 � � �!��i +"� h �. i Jz �'�•'j F� � '��7 1r{�I f �' ��. --.9iii - I•f ._,. I ! :y -� F j a'� '' Y i A�' i �"!+ t• -� � � ,#� `��� t�� �~i'� I ' i `l�s::: � � -� I �,t i4�},}R�Ly@f3 II' 1 r p �1 Parcet� �•-'C'T`r� � �Cy—�L-��1ti25 f '41�1E1�:1��41� I(J i �`�', 'y''ilt :4 t.-., d ��i� r�, S iy ll rl l� �� II Fil.,l �II� '�• 1y ols L.y st'r�'���-�"`��"`� k,17Fb j� y t� , � � � .I 4-;i"�'� ! t`•� �. F[r, r. �i r �� E�I', 9r t ``s �+!'f�JP'la` ��A 1' ,3 F.y `^�; k{ -_r•�X } -� f I < i .�; 5A,m, J r ti - �', -," �i{t S 1 �I� �i ''71',� `�s'�`•11 41{•�--�.a. T _� +,(+I.'ti � �, � t}i Y i S1 f;�., .' - E Mm T t: I 1 I r1qf. 4 r t I 7� 44 V:. � ��'- ��!r<I{'+`_ tE' -.r'' `'� �M ]i '�:, �fa_ .'4y'il"`ei5.�t-,,�,•; -i ,�.,. ::'.!]1 d # ,� ..� Y ` 1 Sisal`' ,��t �,� Es., y+ .,r }. 1 •'�. '• �I I �`Yk _ _.. - ��•-9� I �N '`�i�, y3 fi f�� r T r f�=, i. � t��'�z.•I , 1.+I fj � 8� -.1: K;a7: �t yJt��'`f•ii 1, �E�- +'� 'fir.: ,• 1111f ��rr �t 1SI,Fi�If m�h ltii t 1 ���GGGu If S�fIIIT rl,t ? ''� I j �411�sa.frf�• li r a -_t II f( `: ;i `�.'i��t �5- I' -I;,e � .� l�r �1:`� i �pl dot,1 li ��y.,.,• -•tti.I� T �r�•,._..r�.•:`;-a`r ��.,'t4� � L• �•* --y-� r `i0-*�7 I 1�ti�i• 1 !l i' � M 1�� '�'r' tj Ito t t- /;Y:+' {,> ij;]l; I' •.1_� I/, 3 �� i �- � � � s�;'K '.tom n c)IE_�Tv�G'�F'h�j�,�f��t 71 ��_I 1 A. l EP- FF� 7 TZ E J _ ;Y ,• Ise J Alr� i x. 7 .,.,t1• Nil i6 RIM, K 1 J it pro Ir \ar.? WT s ji -s r �� �..� {�S�v,_.r,)'� '�. S• yam_ cd.. -.-�,lr--^r ,c .,.-.�, ct.. j ti LOT 52 NOATH i"%' � RE6ERVG0 '•=.�.ti pit LT R`�~`' E 56R V80 (' S W P PERMST I � RESERVED PEFqy REDSBp R 6Yfr (f) r sA 1LI T e" .$ Ul •:ti gV1r 14 MET ERE❑ SPACES f1E51CRVE0 9 W P PERMIT SPACES 2 METEREDHAMCICAPPE4 SPACES 51 T 0 T A L SPACES MICHIGAN AVE . PU 2sc r �G6';SLD\�N1L';:4wI�'-' .� nivb\f -i= !-.S9 \ . § LOT 53 NORTH , 0- �\ | . \ . �y w �A n o y � �ƒ _ « !, METERED SPACES . 2 METERED HANDICAPPED @P*GE& -_ „ TOTAL SPACES . � ! V | C HIG A N AVE . } . .c E»