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HomeMy WebLinkAboutexhibit 4 - RLAExhibit' PI, REVOCABLE LICENSE AGREEMENT ISSUED BY THE CITY OF MIAMI 2002 APR -3 PM 12: 59 C11 i ;r MtAM1 RISK MANAGEMENT TO. RACEWORKS, LLC For motor sports races in the Downtown Area of the City of Miami, Florida pursuant to the Municipal Motor Vehicle Racing Act, at Section 549.08, Florida Statutes TABLE OF CONTENTS PAGE Recitals 4 1. Recitals 6 2. Definitions 6 3. This Agreement Confers No Exclusive Possession of Property 8 4. Race Course 8 5. Permitted Uses 8 6. This Agreement is Revocable at Will 10 7. Default and Termination 10 8. Licensee's Release From Agreement 10 9. This License Agreement is Not Assignable 11 10. Term 11 11. City's Use Fee 12 12. Park Fee I2 13. Name of Race Event 14 14. Media Rights 14 15. Concession Agreements 14 16. Scheduling of Race Events. 15 17. initial Improvements to the Race Course 16 18. Payment of the Costs of the Initial Improvements 17 19. Mechanic's Lien 17 20. Subsequent Improvements to the Race Course 18 21. Payment of the Costs of Subsequent Improvements 19 22. Modifications to the Race Perimeter 19 23. Permanent Improvements 19 24. Storage 20 25. Licenses, Authorizations & Permits 20 26. City Police, Fire & Sanitation Services 21 27. Traffic Plans for Race Events 22 28. Set Up & Tear Down of the Race Perimeter During the Use Period 22 29. Licensee's Operations of Race Events 24 30. Risk of Loss 25 31. Signage 25 32. Financial Obligations 26 33. No Claim to Assets or Rights of Licensee 26 34. Licensee's Records & Financial Statement 26 -35. Compliance with Municipal Motor Vehicle Racing Act 26 36. Promotion by City & Trust 26 37. Quality of Events 27 38. Taxes 27 2 39. Compliance With Laws 27 40. Additional Expenses 27 41. No Discrimination in Hiring 27 42. Indemnification 28 43. Insurance 29 44. Risk Review 30 45. Audits 30 46. Inspections 31 47. Public Records 31 48. Nondiscrimination 31 49. Affirmative Action 32 50. Conflict of Interest 32 51. Late Payments 32 52. Failure to Stage Events 33 53. Notices 33 54. Waiver 34 55. Force Majeure and Impossibility 34 56. Failure to Obtain National or International Sanctioned Event 35 57. Restoration of Public Property 35 58. Compliance with Environmental Laws 36 59. Invalidity 36 60. Time of Essence 36 61. No Interpretation Against Draftsmen 37 62. Further Acts 37 63. Litigation 37 64. Third Party Beneficiary 37 65. No Partnership 37 66. Amendments 37 67. Miscellaneous 38 68. Entire Agreement 38 69. Authority 38 70. Approval By The U.S. Department of the Army, Army Corps of Engineers 38 3 REVOCABLE LICENSE AGREEMENT This revocable license agreement ("Agreement") is entered this let- 1 lday of (but is effective as of ), by and between the City of Miami, a municipal /r corporation of the State of Florida ("City"), Bayfront Park Management Trust ("Trust"), a limited agency and instrumentality of the City of Miami, and Raceworks, LLC, a limited liability corporation organized and existing under the laws of the State of Delaware and licensed as a foreign corporation in the State of Florida ("Licensee"). RECITALS WHEREAS, a prior Revocable License Agreement ("Prior Agreement") was previously entered into and adopted by City Resolution No. 01-1229 on November 15, 2001, was amended and was challenged in Miami -Dade County Circuit Court in Case No. 01-17514 CA 24 and was declared null and void by Order of the Court, dated March 4, 2002 (the "Order"); and WHEREAS, the validity of the Prior Agreement is consequently in question; and WHEREAS, the City and Licensee desire and intend to enter into a license agreement that does not constitute a lease nor offend any of the elements identified in the Court Order of March 4, 2002 as tending to show a lease and consequently triggering the provisions of the City Charter which would require such agreement to be put out for public bid; and WHEREAS, a racing event held under Chapter 549 of the Florida Statutes and "any action taken by a municipality or a permit holder pursuant to [Chapter 549] shall be considered as being for public purposes, including the promotion of commerce and tourism, and for the benefit of the citizens of the municipality and the state;" Section 549.08(10), Florida Statutes; and WHEREAS, the City has entered into this Agreement in order to accomplish and effectuate those important policy reasons identified by the legislature in Chapter 549, Florida Statutes, which goals can be realized by holding a race event and the City wishes to encourage the resulting commerce and tourism which will benefit both the citizens of the City and the state; and WHEREAS, it is necessary for the City to enter into multi -year license agreements with promoters of events, in order to encourage promoters to make substantial investments into the City of Miami; and WHEREAS, this Agreement is not intended to constitute a lease so that the City may enter into an agreement to hold a race event as contemplated by Chapter 549 of the Florida Statutes which does not implicate any City Charter or City Code provision that would require public bidding or otherwise void the agreement; and 4 WHEREAS, this Agreement is not assignable; and WHEREAS, this Agreement is revocable at will by the City; and WHEREAS, Licensee has expended monies of its own towards making improvements to property belonging to the City, which improvements have value to both the City as well as to any other entity or party which may use said improvements; and WHEREAS, this Agreement does not transfer an interest in real property including any leasehold interest in real property owned by the City; and WHEREAS, this Agreement does not confer a right to use any real property for any general purposes; and WHEREAS, this Agreement does not convey or transfer any right to exclude the City from any real property; and WHEREAS, this Agreement permits only certain, enumerated, specific and listed permitted uses and does not permit anything further; and WHEREAS, this Agreement is intended to be non-exclusive and the. City is ready and willing to enter into similar arrangements with other parties for other dates on which to hold additional race events; and WHEREAS, the staging of the original "Miami Grand Prix," for many years in the City, provided favorable nationwide and worldwide publicity and advertising for the City, attracted thousands of individuals as participants and spectators to the race, many of whom traveled to the City from other locales, and thus caused a significant beneficial impact on the economy of the City; and WHEREAS, Licensee has entered into Iong-term sanctioning agreement(s) with professional motor sports sanctioning organization(s) to stage Race Events annually in downtown Miami subject to the execution of this Agreement by the City and the Trust; and WHEREAS, pursuant to Resolution No. the City Manager to enter into this Agreement; and WHEREAS, pursuant to Resolution No. Director to enter into this Agreement; and , the City Commission has authorized , the Trust has authorized its Executive 5 WHEREAS, at the time this Agreement is executed, Initial Improvements for the Initial Race Event are substantially completed or will be completed within two weeks of execution hereof,; and WHEREAS, Licensee has developed a mitigation plan and has developed traffic flow and logistical plans to minimize the disruption to Downtown businesses and hotels; and WHEREAS, subject to applicable laws and the limitations set forth herein, the City and the Trust maintain Public Property and each possess the respective authority to permit and license the use of Public Property for periods of time and for the purposes set forth herein. NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties hereby agree as follows: 1. Recitals. The foregoing recitals are hereby incorporated and made a part of this Agreement. 2. Definitions. a) "City Manager" is the City Manager for the City of Miami. b) "City Ticket Fee" is the amount of fees paid to the City pursuant to Paragraph 12 of this Agreement. c) "City Use Fee" is the Use Fee that Licensee pays to the City. d) "Event Weekend" is the Thursday, Friday, Saturday and Sunday of Raceworks Events. e) Trust. "Executive Director" is the Executive Director of the Bayfront Park Management f) "Hazardous Materials" are diesel, propane, oxy-acetylene, paints, lubricant solvents, used oil, and other hazardous substances, toxic substances, pollutants, contaminants or hazardous waste materials. g) "Initial Improvements" are the improvements to be made upon the portion of Public Property, which comprises the Race Course for the initial Race Event. h) "Instrument" is an irrevocable letter of credit or other form of security instrument acceptable to and approved in writing by the City Manager. 6 i) "Park Ticket Fee" is the amount of fees paid to the Trust (or to the City if a different City park is utilized) pursuant to Paragraph 12 of this Agreement. j) "Park Use Fee" is the Use Fee that Licensee pays to the Trust (or to the City if a City park other than Bayfront Park is utilized) pursuant to Paragraph 12 of this Agreement. k) "Public Property" is real and personal property located within the Race Perimeter that is owned or leased by the City or managed by the Trust. l) "Race Course" is the specific route through which the Race Events shall be conducted. A diagram of the Race Course will be depicted in the annual Race Permit. m) "Race Event" is the day(s) that a motor vehicle race sanctioned by a nationally or internationally recognized racing organization is conducted and includes the days for practices and qualifications for a race. n) "Race Perimeter" includes properties within which the Raceworks Events shall take place and which is temporarily used by the Licensee to promote a Race Event and is depicted in an exhibit to the Race Permit. o) "Race Permit" is a permit which may be issued by the City's administration in accordance with the Municipal Motor Vehicle Racing Act as set forth in Section 549.08, Florida Statutes. p) "Raceworks Events" include collectively Race Events, Support Events or endeavors resulting from the license granted hereunder conducted during an Event Weekend. q) "Services" are the services rendered by the City's Police, Fire, and Solid Waste Departments during Race Events or Support Events. r) "Subsequent Improvements" are the modifications, improvements and/or maintenance of the Race Course that may be requested by Licensee after the initial Race Event occurs. s) "Support Events" are secondary racing series and other entertainment activities which include having a "racing village", catering compound, hospitality suites, VIP Club, merchandising facilities and such other related activities permitted under this Agreement that are conducted with a Race Event. t) "Use Fee" is the fee that Licensee pays to the City or the Trust, as the case may be, for the use of its facilities and property. 7 u) "Use Period" is the period of time allotted for the set-up, presentation and dismantling of Raceworks Events. Unless otherwise agreed in writing by the City and the Trust (if Bayfront Park is utilized), the set-up period shall commence no earlier than forty-five (45) days prior to the first date of the Event Weekend, and dismantling shall begin immediately upon the conclusion of the Event Weekend and shall conclude within thirty (30) days thereafter. The City and Trust (if Bayfront Park is utilized) may shorten or extend the Use Period for Raceworks Events, in writing, should Licensee require a shorter or longer period for set-up and dismantling of the same. 3. This Agreement Confers No Exclusive Possession of Property. This Agreement confers no exclusive possession of property. The Licensee cannot exclude the City from any Public Property. The grant of rights hereunder does not affect the private property rights, where applicable, of any other property rights or private rights holder to any of the property underlying the Race Perimeter. In order to stage the Raceworks Events, the Licensee agrees to make arrangements with Bayside Marketplace and any other entities having a legal interest in any public or non-public property located within the confines of the planned Race Perimeter, including, but not limited to, the public rights -of -way not owned by the City or managed by the Trust. Licensee further agrees to provide pedestrian access along all public sidewalks adjoining private businesses included within the boundaries of the Race Course and the Race Perimeter. 4. Race Course. No specific real property for the Race Events is identified or defined in this Agreement. Nothing in this Agreement shall be construed to, or in and of itself, permit Race Events in a definite location. The precise areas where Race Events will take place are to be defined in a separate Race Permit which may be issued annually by the City to the Licensee in connection with the Raceworks Event. Nine (9) months prior to commencement of each Use Period, Licensee must submit to the City for approval a proposed Race Course. Consent from the City of the proposed Race Course will not be unreasonably withheld. If such Race Course is approved, the City and other affected public right of way holders will issue a Race Permit to the Licensee approving such Race Course. �. Permitted Uses. Subject to existing zoning and other governmental restrictions and the issuance of a Race Permit, this License authorizes the Licensee to conduct a motor sports race on a race course that 8 is approved pursuant to Section 4 of this Agreement. For the term of this Agreement or an extension thereof, the City and the Trust (if Bayfront Park is utilized) will grant Licensee a privilege to run a maximum of two Event Weekends in the City per year on an approved Race Course and within an approved Race Perimeter. This Agreement solely authorizes Licensee to conduct Race Events and Support Events for the limited purposes set forth herein and for no other purpose. The City and the Trust (if Bayfront Park is utilized) retain dominion, possession and control of' the Public Property. Therefore, no lease interest in the Public Property is conferred upon Licensee under the provisions hereof Licensee does not and shall not claim at any time any interest or estate of any kind or extent whatsoever in the Public Property by virtue of this Agreement or its use of Public Property hereunder. Additionally, Licensee does not and shall not claim at any time any interest or estate of any kind or extent whatsoever in the Public Property by virtue of any expenditure of funds by the Licensee for improvements, construction, repairs, partitions, or alterations to the Public Property which may be authorized by the City or the Trust. Subject to the conditions stated herein, any applicable laws, and pursuant to Section 549.08(5)(a), Florida Statutes, Licensee may limit access to the Race Perimeter under Licensee's paid ticketing and credential system, create viewing and pit areas, charge admislion. fees pa ona attending the Race Event provide food and beverages (including beer, wine and liquor), sell merchandise and other concessions, broadcast through any and all forms of media and sponsor other Support Events. During a Raceworks Event, the Licensee may limit public, vehicular and pedestrian access to the Race Perimeter in a manner agreed upon by the City Manager, the Executive Director (if Bayfront Park is utilized) and pursuant to Section 549.08(5)(a), Florida Statutes, which allows a person issued a municipal motors sports permit to limit access to the racing event area and any area from which the racing event may be viewed. In addition to, but concurrently with the Race Event, Licensee will also stage Support Events within the Race Perimeter which could feature secondary racing series ilia': otheiN, entertaimne+nt:`adtivitiea,subject to approval by the City Manager and Executive Director (if Bayfront Park is utilized). Subject to any legal requirements, authorizations and permits, to the extent that the City and Trust (if Bayfront Park is utilized)rights, ,City y Bayfront Park (if possess such n to the Cit and Ba ant Bayfront utilized) grant a license to Licensee to conduct Trace Event!' and Support Events n#Park is idun the: limited mutually agreed upon tune eri'` pried -herein u consist of the following:fireworks displays, �P � ' Support Events may musical and other concerts and festivities, boat shows, amusement rides, animal shows, fashion shows and talent contests, high performance ride and drive activities, air shows, high performance motorized boat races adjacent to the Park, temporarily limit access to and/or close down City streets and buildings to traffic or pedestrian access, limit access to the waterways adjacent to Bayfront Park, display giant televisions, laser shows, television transmission requirements, above ground temporary or other type of voice, data, telephone cabling, conduct night racing and set up flood lights and other equipment to do so, sell corporate hospitality and VIP Club tickets, to set up temporary catering facilities for the 9 preparation and sale of food, to sell advertising rights, space and signage upon and throughout the Race Course, Race Perimeter, Park (if Bayfront Park is utilized) and Race Perimeter fencing, including on barriers, debris fencing, pedestrian bridges, and other forms of advertisement on scoreboards and giant television screens, signs and banners, to temporarily limit access to and/or re -direct or close traffic. The Licensee shall submit a schedule of proposed Support Events at least thirty (30) days prior to a Use Period, and the City Manager and the Executive Director (if Bayfront Park is utilized) shall have the discretion to oppose any Support Event that either may consider not in the best interest of the City or the Trust, respectively. Subject to all applicable laws, the City and Trust (if Bayfront Park is utilized) hereby grant Licensee a license to conduct Race Events and Support Event in a safe and lawful manner as scheduled, to establish and maintain the Race Course on a temporary basis, to enable the temporary set up and tear down of the Race Course and support facilities, the right to erect pedestrian bridges and hospitality facilities, establish the Race Course and Race Perimeter and otherwise to enable the Raceworks Events to be promoted, effectuated, staged, operated, managed, performed, and conducted in a lawful, safe and professional manner consistent with the requirements of the racing series, the sanctioning organizations, and industry standards. 6. This License Agreement Is Revocable At Will This License extended to the Licensee is revocable at will by the City Commission and without the consent of the Licensee. 7. Default and Termination. Except as otherwise specifically provided hereunder, if at any time during the term of this Agreement, or any extension thereof, should any party be in default of any term, provision or covenant of this Agreement, and shall fail to take affirmative steps to remedy such default within thirty (30) days after written notice from the other party, then, if such default is not cured within nine (9) months, the non -defaulting party may, at its option, terminate this Agreement by giving the defaulting party written notice of its election to terminate this Agreement at least fifteen (15) days prior to said date of termination. The default provisions contained in this Agreement shall in no way impair the City's ability to revoke this Agreement as is provided in Section 6, entitled "This Agreement is Revocable at Will". 8. Licensee's Release From Agreement. In the event that Licensee desires to relocate, discontinue or move the Race Events from Downtown Miami, then Licensee shall pay the City a fee ("RDM Fee") in an amount equal to: 10 plus the aggregate costs to the City and/or the Trust (for such years when Bayfront Park is utilized) including any in -kind services (e.g. the value of the storage of Licensee's equipment) any unpaid costs of the improvements and modifications to the Race Course, and any other cost to the City or the Trust for Raceworks Events, that the Licensee has not paid or reimbursed the City or Trust for (collectively "the City Costs" or individually, on a per year basis, "Annual City Costs"); seven and one-half percent (7 % %) interest per year of the Annual City Costs; plus any outstanding Fees, payments or amounts that are due and owing to the City or the Trust. After payment by Licensee of the RDM Fee, the City and Trust shall release and hold harmless Licensee from any and all claims that the City and Trust have under this Agreement. If Licensee fails to pay the total amount of the RDM Fee, then Licensee shall be deemed in material breach of this Agreement. In the event that Licensee desires to relocate, discontinue or move the Race Events from the City limits, Licensee agrees not to use the name "Miami" or any other reference to the City or the Trust in the name of Licensee's subsequent race events. 9. This License Agreement is Not Assienable. Licensee shall not sell, assign this Agreement, or any part thereof to any other party. The License granted by this Agreement is personal to the Licensee. Any assignment of this Agreement contrary to the foregoing provision, whether voluntary or involuntary, shall be void and shall confer no right upon such assignee, shall constitute a default under this Agreement, and shall result in an immediate forfeiture of the rights of Licensee hereunder. 10. Term. The initial term of this Agreement shall be fifteen (15) years, commencing upon the effective date of this Agreement. The Licensee shall have the option of extending the term of this Agreement for a period of ten (10) years. If Licensee elects the option to extend the tenn of this Agreement, Licensee shall give the City and Trust (if Bayfront Park is utilized) written notice of its intention to exercise the option a minimum of sixty (60) days prior to the expiration of the Agreement. 11 1 1. Citv's Use Fee. Licensee will pay to the City the City Use Fee of $50,000.00 which shall be due no later than thirty (30) days after each Event Weekend. The City Use Fee shall increase annually in accordance with the Consumer Price Index, as published by the U.S. Department of Labor, however in no event shall the increase exceed four percent (4%) of the City Use Fee for the last Race Event of the previous year in which a Race Event occurred. Licensee agrees to pay to the City the City Ticket Fee for any and all tickntl'iroid b 4 Licenaec 'he City Ticket Fee shall be payable as follows: Year City Ticket Fee 1-5 $1.00 6-10 $1.25 11-15 $1.50 During any extension of this City Ticket Fee Agreement 1-5 $1.75 6-10 $2.00 Each printed ticket shall be itemized to show the admission price, applicable taxes, any service charge from outside ticket agencies and the City Ticket Fee. Licensee agrees to record the City Ticket Fee as a separate item in the certified statement of accounts for the Racewoits Evi tt . Licensee shall be responsible for the collection of the City Ticket Fee, which shall be held by Licensee in trust for the City. Licensee shall pay City Ticket Fee to the City, within. sixty (60) days after the conclusion of an Event Weekend. Licensee shall maintain all books and records pertaining to the Raceworks Event and the revenue therefrom and shall make such books and records available for City and Trust's (if Bayfront Park is utilized) inspection and auditing as provided herein. reallir$14 '�djtiona surcharges, or other charges for the use of c Pubic; . , e 'its act m equ entati9nry Bermes unless it is. mutually agreed upon by the parties in wnti. 12. Park Fee. If Raceworks Events are conducted in Bayfront Park or in any other City park, then there shall be a Park Use Fee as authorized by Florida law. 12 In addition to the City's Use Fee to be paid to the City herewith, Licensee will pay to the Trust (or to the City if a City park other than Bayfront Park is utilized) the Park Use Fee of $50,000.00 which shall be due no later than thirty (30) days after each Event Weekend. The Park Use Fee shall increase annually in accordance with the Consumer Price Index, as published by the U.S. Department of Labor, however in no event shall the increase exceed four percent (4%) of the Park Use Fee for the Raceworks Event of the previous year in which a Race Event occurred. The Park Use Fee is inclusive of the fees for the use of Bayfront Park or any City park, its amenities and facilities for each such Raceworks Event and includes the janitorial services, electrical and water services that are normally available in Bayfront Park or any City park. In the event that the Licensee requires electrical, water and janitorial services that exceed those that are normally available in Bayfront Park or any City park, then Licensee shall be responsible for paying the Trust (or City if a different City park is utilized) for providing or causing said services to be provided by independent companies. Licensee agrees to pay to the Trust (or to the City if a different City park is utilized) the Park Ticket Fee for any and all tickets sold by Licensee. The Park Ticket Fee shall be payable as follows: Year Park Ticket Fee 1-5 $1.00 6-10 $1.25 11-15 $1.50 During any extension of this Agreement 1-5 6-10 Park Ticket Fee $1.75 $2.00 Each printed ticket shall be itemized to show the admission price, applicable taxes, any service charge from outside ticket agencies and the Park Ticket Fee. Licensee agrees to record the Park Fee as a separate item in the certified statement of accounts for the Raceworks Event. Licensee shall be responsible for the collection of the Park Ticket Fee, which shall be held by Licensee in trust for the Trust (or City if a different Park is utilized). Licensee shall pay Park Ticket Fee to the Trust (or City if a different City park is utilized), within sixty (60) days after the conclusion of an Event Weekend. Licensee shall maintain all books and records pertaining to the Raceworks Event and the revenue therefrom and shall make such books and records available for City and Trust's (if Bayfront Park is utilized) inspection and auditing as provided herein. The Trust (or the City if another City Park is utilized) shall not require Licensee to pay any additional surcharges, or other charges for the use of the Park (or City park) or its facilities, equipment or services unless it is mutually agreed upon by the parties in writing. 13 13. Name of Race Event. Licensee has the right to create the name of the Race Event and shall notify the City and Trust (if Bayfront Park is utilized) in writing of the Race Event name. Licensee agrees to utilize the name "Miami" in the Race Event's name, and to feature the "City of Miami" and "Bayfront Park" and "Bayfront Park Management Trust" (only if Bayfront Park is utilized) in any and all promotional materials for the Race Events. In the event that Licensee ceases to conduct Race Events within the confines of the legal boundaries of the City, Licensee's agrees not to use "Miami" and / or "Bayfront Park" in the name of subsequent race events. 14. Media Riehts, The City and the Trust (if Bayfront Park is utilized) further understand and agree that the Licensee will own, sell, license, sub -license, assign, convey and transfer every manner and method of transmission, whether by satellite master antenna television systems, fiber optic, direct ' broadcast satellite, transmission to TVRO receiving dishes, video dial tone system, open video system, cable, microwave, multipoint distribution services, multi -channel MDS, radio and by the internet, whether in a form which is existing or subsequently invented, and by means of any similar or dissimilar electronic, analog or digital means now known or hereafter invented, as well as by the World Wide Web of the Internet, including computer on-line media, real time telemetry rights, time and scoring information, simulcast video streaming rights, and telephonic transmission and any other internet technology whether existing now or in the future, relating to the Race Events and the Support Events that are contemplated within this Agreement. In addition, so long as the Race Events are conducted in the City and within the Park, Licensee agrees to utilize the names "City of Miami," "Bayfront Park Management Trust," respectively, and their logos (whether in present form or as subsequently created or modified) in said media for purposes of promoting, merchandising, and marketing the Race Events and Support Events in any form, subject to the approval of the City and the Trust (if Bayfront Park is utilized). extent that the �City a has the ability to control or permit, the LteenIe /enter'' tito ; ip� agr eats t '° .�. - I associated 'with Race Evans thin;.the Race ' enn' er unng vent Weekends. Concessions include, but are not limited to, merchandise, s uvenirs, catering, food service,. and beverages (including beer, wine and liquor) and all other mnierchtfly. related incliclini nteclia, marketing,. and sponsorship for Raceworks'`Events Licensee shall indemnify, hold and save harmless, and defend the City and the Trust (if Bayfront Park is utilized), their directors, officers, 15. Concessions Aereements Subject to all applicable laws, and pursuant to the terms of this Agreement, and to the cessions and ing o"iccs 14 employees and volunteers from and against any and all claims demands, liens, judgments, liability, losses or damages, including but not limited to costs, expenses and attorney's fees arising out of or attributable to the concession agreements that Licensee enters into for concessions. 16. Scheduling of Event Weekends. The initial Race Event, featuring the American Le Mans Series, Championship Auto Racing Teams, and Trans Am Series, shall be held October 4-6, 2002. Licensee shall conduct a minimum of one and a maximum of two Event Weekends annually. Licensee will conduct one Event Weekend in either the Spring or Fall. Race Events may be scheduled during the Summer or Winter, however such an alternate time must be mutually agreed upon by the parties and is subject to the terms and conditions set forth herein. The parties shall attempt, whenever reasonably possible, to select the same time period to schedule Event Weekend(s) annually. However, in no event shall there be more than two Event Weekends per year. The City and the Trust (if Bayfront Park is utilized) shall, using their best efforts, attempt to accommodate the dates and scheduling requirements in which Licensee proposes to conduct Race Events. Licensee shall have a preference in scheduling dates for the Event Weekend given the scheduling limitations put upon Licensee by the sanctioning organizations and by television broadcast requirements. Licensee shall use its best efforts to schedule the Event Weekend(s) at approximately the same time of the year. For any Raceworks Event after the initial Raceworks Event, Licensee shall give the City and the Trust (if Bayfront Park is utilized) nine (9) months written notice of the proposed dates for any Event Weekend. The City Manager and the Executive Director (if Bayfront Park is utilized) shall have ten (10) business days to approve or disapprove the proposed dates. The City and Trust's (if Bayfront Park is utilized) approval shall not be unreasonably withheld. In deciding whether to approve or disapprove a proposed date for an Event Weekend, the City, through its City Manager, and the Trust (if Bayfront Park is utilized) shall give weight to a) the scheduling requirements of the pertinent racing series and/or sanctioning organization; b) the television broadcast requirements; and c) whether there are other events scheduled in the Park (if Bayfront Park is utilized). The City and Trust each acknowledges that the Licensee is constrained by the racing series sanctioning organizations and television broadcast requirements, and the City and the Trust (if Bayfront Park is utilized) shall take reasonable steps to accommodate the Licensee's proposed race dates. 15 17. Initial Improvements to the Race Course. Licensee has designed a Race Course which requires Initial Improvements. Subject to obtaining approvals from the applicable government entities, the Licensee will make the necessary Initial Improvements. Licensee shall be financially responsible for the costs of the Initial Improvements contemplated herein. Payment for the costs of the Initial Improvements shall be made in accordance with Paragraph 18 below, entitled "Payments for the Costs of Initial Improvements. Some of the Initial Improvements may require approval by the Army Corps of Engineers, State of Florida Department of Transportation, Miami -Dade County, the Water and Sewer Authority, other federal, state and local government agencies, and any other entity which has the right to permit or provide approval for access to such property within or abutting the Race Course. The City makes no representation to the Licensee concerning such approval. The Licensee shall take the steps necessary to obtain the requisite approval and/or permits to make said Initial Improvements. Licensee will complete the Initial Improvements on a timely basis so as to facilitate the timely promotion of the initial Race Event, subject to the force majeure provisions contained herein. In the event that additional design and construction is required, the parties will cooperate in good faith to complete such design and construction, respectively, on an expedited basis so as to facilitate the initial Race Event to be conducted as scheduled. 16 18. Payment of the Costs of the Initial Improvements. Licensee shall pay for the Initial Improvements, which shall be constructed by the Licensee in phases ("Phases") to be determined by the Licensee in its sole discretion. Prior to the commencement of the .Initial Improvements, Licensee shall execute, deliver to the City Manager, or designee, and record in the public records of Miami -Dade County, a payment and performance bond with a surety insurer authorized to do business in this state as surety. The bond, which shall be in the full amount of the costs of each Phase of the Initial Improvements, must state on its front page: the name, principal business address, and phone number of the contractor, the surety, the owner of the property being improved, and, if different from the owner, the contracting public entity; the contract number assigned by the contracting public entity, if any; and a description of the project sufficient to identify it, such as a legal description or the street address of the property being improved, and a general description of the improvement. Such bond shall be conditioned upon the contractor's performance of the construction work in the time and manner prescribed in the contract and promptly making payments to all persons who furnish labor, services, or materials for the prosecution of the work provided for in the contract. The Licensee shall provide the City Manager, or designee, with a copy of its agreement with its contractor. No claim against the bond or action against the contractor shall involve the City or Trust in any expense. The requirements of this paragraph shall be in compliance with the provisions of Fla. Stat. § 255.05 (2001) In addition, Licensee will provide the City with an Instrument in an amount reasonably necessary for the City to complete the Initial Improvements or restore the Public Property to the condition it was in prior to the Initial improvements in the event the Licensee fails to complete the initial Improvements. Improvements can not commence until both the Instrument and the payment and performance bond contained herein are provided to the City and are approved by the City Manager. 19. Mechanics' Liens. The Licensee shall not knowingly suffer or permit any mechanics liens to be filed against the title to the Public Property by reason of work, labor, services or materials supplied to the Licensee or anyone having a right to possession of the Public Property as a result of an agreement with or without the consent of the Licensee. Nothing in this Agreement shall be construed as constituting the consent or request of the City or the Trust (if Bayfront Park is utilized), expressed or implied, by inference or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials, for any specific work on the Public Property nor as giving the Licensee the right, power or City or the Trust (if Bayfront Park is utilized) to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any mechanics liens against 17 the City or the Trust's interest in the Public Property if any mechanics lien shall at any time be filed against the Public Property, the Licensee shall cause it to be discharged of record within thirty (30) days after the date that it has notice of its filing. The Licensee shall not be required to pay or discharge any mechanics' lien within the thirty (30) day period, so long as the Licensee shall in good faith proceed to contest the lien by appropriate proceedings. It shall furnish reasonably satisfactory evidence that funds are or will be available to pay the amount of the contested lien claim with all interest on it and costs and expenses, including reasonable attorneys' fees to be incurred in connection with it. If Licensee does not I) cause a mechanics lien to be discharged of record within thirty (30) days after the date the Licensee has notice of the filing of a lien or 2) Licensee does not in good faith proceed to contest the lien by appropriate proceedings within the thirty (30) day period, then Licensee shall be in default of the Agreement. 20. Subseouent Improvements to the Race Course. After the initial Race Event, if Licensee is required to make or undertake Subsequent Improvements to the Race Course to comply with the requirements of racing series or sanction organizations or for any other reason, Licensee shall notify the City Manager and the Trust (if Bayfront Park is utilized) a minimum of ten (10) months prior to the Event Weekend. Licensee shall submit the proposed alternate Race Course design to the City Manager at least six (6) months prior to the Event Weekend for the City Manager's approval. Such approval shall not be unreasonably withheld. Should Subsequent Improvements to the Race Course be required, the parties will cooperate in good faith to: (i) adjust to any development constraints in the City; (ii) accommodate the special needs of the Race Events; (iii) cooperate with each other in good faith to develop an alternative, cost effective race course design modification which continues to satisfy the requirements of the Race Events and. Support Events as scheduled; and (iv) which continues to enable Licensee to stage the Race Events in a first class manner similar to the presentation of the original "Miami Grand Prix" in Downtown Miami. In any year in which Licensee requests Subsequent Improvements and the City approves of the Subsequent Improvements, the Licensee shall be financially responsible for the cost of such improvements. Payments for the costs of Subsequent Improvements shall be made in accordance with Paragraph 21, entitled "Payments for the Costs of Subsequent Improvements." The Licensee shall not make additional modifications to the Race Course if Licensee is in default of this Agreement, or any extension thereof. 18 21. Payment of the Costs of Subseauent Improvements. Licensee shall pay for the Subsequent Improvements, which shall be constructed by the Licensee in phases ("Phases"). Prior to the commencement of the Subsequent Improvements, Licensee shall execute, deliver to the City Manager, or designee, and record in the public records of Miami -Dade County, a payment and performance bond with a surety insurer authorized to do business in this state as surety. The bond, which shall be in the full amount of the costs of each Phase of the Subsequent Improvements, must state on its front page: the name, principal business address, and phone number of the contractor, the surety, the owner of the property being improved, and, if different from the owner, the contracting public entity; the contract number assigned by the contracting public entity, if any; and a description of the project sufficient to identify it, such as a legal description or the street address of the property being improved, and a general description of the improvement. Such bond shall be conditioned upon the contractor's performance of the construction work in the time and manner prescribed in the contract and promptly making payments to all persons who furnish labor, services, or materials for the prosecution of the work provided for in the contract. The Licensee shall provide the City Manager, or designee, with a copy of its agreement with its contractor. No claim against the bond or action against the contractor shall involve the City or Trust in any expense. The requirements of this paragraph shall be in compliance with the provisions of Fla. Stat. § 255.05 (2001) In addition, Licensee will provide the City with an Instrument in an amount reasonably necessary for the City to complete the Subsequent Improvements or restore the Public Property to the condition it was in prior to the Subsequent Improvements in the event the Licensee fails to complete the Subsequent Improvements. Subsequent improvements can not continence until both the Instrument and the payment and performance bond contained herein are provided to the City and approved by the City Manager. 22. Modifications to the Race Perimeter. Licensee shall not make any modifications or improvements to the Public Property without prior approval from the City and the Trust (ifBayfront Park is utilized) . 23. Permanent Improvements. Upon the inspection and approval of the Initial and Subsequent Improvements on Public Property, the Initial and Subsequent Improvements shall become the property of the City. 19 24. Storage. The City will use its best efforts to locate and provide property for the storage of the Race Course safety systems, equipment and barricades. In the event that the City is able to locate a storage facility for Licensee to store the Race Course safety systems, equipment and barricades, the City shall issue to Licensee a thirty (30) day revocable permit for storage of said equipment. This in -kind service has a present approximate value of S50,000. The value shall increase annually in accordance with the Consumer Price Index, published by the U.S. Department of Labor, however the annual increase shall not exceed four percent (4%). The Licensee shall, however, be solely responsible for any transportation or other costs associated with such storage. The City and the Trust (if Bayfront Park is utilized) shall use their best efforts to provide Licensee at no charge with appropriate City or Trust (if Bayfront Park is utilized) facilities near the Race Course to assist Licensee in the construction of the Race Course and Race Perimeter, and the set up and tear down activities. However, all costs associated with all such activities shall be the sole responsibility of the Licensee. Licensee shall bear the risk of loss for the use of such storage and agrees to indemnify, hold and save harmless, and defend the City and the Trust, their directors, officers, employees and volunteers from and against any and all claims, demands, liens, judgments, liability, losses or damages, including but not limited to cost, expenses and attorney's fees that occur as a result of the Licensee's use of the storage facility. 25. Licenses, Authorizations and Permits. The Licensee shall obtain licenses, authorizations and permits from the applicable county, state and federal agencies for Initial or Subsequent Improvements, modifications and maintenance that it shall perform on the Public Property. Licensee shall pay for such costs. Additionally, Licensee shall obtain, or cause to be obtained, and maintain in full force and effect throughout the term of this Agreement or any extension thereof, at its sole expense, all other licenses, authorizations and permits that are necessary for Licensee to conduct the Raceworks Events. In the event that it is necessary for the City, Trust or other City Agency or Instrumentality to be a co -applicant or co-sponsor of Licensee's applications for these licenses, authorizations and permits, then the City and Trust agree to be co-sponsors and co -applicants for any licenses, authorizations and permits necessary to stage Raceworks Events. However, Licensee shall be responsible for paying the cost of said applications and obtaining said licenses, authorizations and permits. To the extent not prohibited by law, the Charter and Code of the City of Miami, the City agrees to waive the fees for any licenses, authorizations and permits that Licensee is required to obtain from the City. Prior to issuance of a permit for a Race Event, Licensee shall provide the 20 City Manager with sufficient information, as determined by the City Manager, to demonstrate that Licensee is, and that the Race Event shall be, in compliance with all of the provisions of Section 549.08, Florida Statutes, as amended, which is hereby incorporated by reference. The City shall not issue a permit for a Race Event if either the Licensee or the Race Event is not incompliance with this section. Licensee shall, at its sole cost and expense, apply for all necessary national and international sanctions to allow each Race Event to be qualified as a professional motorsports sanctioned automobile race. A copy of the written confirmation of such sanctions from the sanction organizations shall be forwarded by Licensee to the City Manager and Executive Director of the Trust (if Bayfront Park is utilized) upon receipt by Licensee, but in any event no later than ninety (90) days before the scheduled date of any Event Weekend. In the event such confirmation is not received the Licensee shall be in default hereunder. 26. City Police. Fire and Sanitation Services Licensee shall be responsible for payment of the police, fire rescue and sanitation services ("Services") that are required for each Raceworks Event. Six (6) months prior to a Event Weekend, Licensee will meet with the City Manager or designee to discuss the level of Services that are necessary for a Raceworks Event. The City Manager or designee will contact the City's Police, Fire and Solid Waste Departments to ascertain the level of Services that are necessary prior to, during and after a Raceworks Event. Thereafter, the City Manager or designee shall advise Licensee of the cost of the Services, including an estimate of the number of police, fire and sanitation personnel required, the estimated hours of work and applicable rates of pay. A minimum of seven (7) days prior to the Use Period, Licensee shall provide the City with an Instrument to secure the costs of the Services. The Instrument shall also secure the added costs of removal of the barricades. If Licensee fails to do so, then Licensee shall be in default. If Licensee does not cure this default by delivering an Instrument to the City within twenty-one (21) days from the date of its default, the City shall have the right to immediately terminate this Agreement. The City shall not have any duty to provide any Services while the Licensee is in default hereinafter. The City shall use its best efforts to limit the cost of the Services for the Initial Race Event to an amount not to exceed $300,000. After the Initial Race Event, the City and the Licensee will meet to evaluate the cost of Services for the Initial Race Event in order to determine whether Services will exceed $300,000 in the future. However, in any event, the Licensee shall be responsible for payment of the cost of the Services rendered. If, during a Raceworks Event, the City, in its sole discretion, determines that security for the Raceworks Events is insufficient to ensure the safety and welfare of the public, then the City or Trust may summon such additional personnel as is deemed necessary. Licensee shall be responsible for payment of such additional personnel at the applicable rate, which shall be the rate normally charged for such personnel, depending on factors such as whether the personnel is 21 off -duty or working overtime. In the event that off -duty police officers are summoned, then the compensation shall be based on the greater of four (4) hours or the actual time devoted to the Race Event, including "administrative" time, such as time devoted to booking prisoners, etc. No later than two (2) months prior to the commencement of the Use Period, Licensee shall provide two (2) copies of a diagram/floor plan of the proposed Raceworks Events layout to the Office of Fire Department Plans Examiner, 444 S.W. 2" Avenue, 10th Floor, Miami, FL 33130. Similarly, not later than ten (10) days prior to the commencement of the Use Period, Licensee shall obtain and deliver to the Executive Director (if Bayfront Park is utilized) an Assembly Permit, and such other permits as may be required by the City relative to a Raceworks Event. Fire department manpower requirements for the Event shall be as stipulated by the Fire Marshall and approved by the City Manager. Licensee shall ensure compliance with all necessary police, fire, and sanitation union requirements (if applicable) in connection with the personnel and services engaged for presentation of a Raceworks Event. The City shall .use its best efforts to inform Licensee of the terms of any police, fire, sanitation union agreement, written or oral, affecting all relevant personnel or services used in connection.with any Raceworks Event. 27. Traffic Plana for Race Events Licensee agrees in good faith to work with the City, the Trust (if Bayfront Park is utilized) and the Downtown Development Authority well in advance of any Race Event to devise a plan of traffic and pedestrian control which minimizes unjustified interference with business and individual activity in and about the Race Perimeter. It is not anticipated that any street closures will be required for more than a total of three (3) days during any Race Event and such closures shall be over an Event Weekend. 28. Set Up and Tear Down of the Race Perimeter During the Use Period Licensee shall have access to the Public Property during the Use Period for the set up and dismantling of the Race Perimeter. During the Use Period, subject to the City's and the Trust's (if Bayfront Park is utilized) reasonable approval and subject to applicable laws and any agreements of the City or the Trust (if Bayfront Park is utilized), respectively, with other govenunental or private entities, Licensee may temporarily move or remove light posts, statues, benches or other items located on Public Property, may construct a temporary Race Perimeter, including but not limited to, placing barriers, blockades, temporary cable (electrical and other), safety equipment safety devices, spectator control line fencing, fence covering material, portable toilets, signage, tents and hospitality facilities, cranes, forklifts, vehicles, fire protection equipment and apparatus, temporary fuel dispensing, medical equipment and apparatus, park and display participant vehicles, set up bleachers, seats, temporary wiring, banners, structures, 22 spectator control line and components thereof within the Race Perimeter and any such other structures to ensure the safety, security, and necessary facilities to properly conduct a Raceworks Event. Immediately after the Race Event, Licensee must relocate and/or return any items moved to their original location. The set up and tear down activities shall be effectuated so as to minimize any negative impact upon the routine activities of the City or the Park (if Bayfront Park is utilized or some other City park). Licensee understands that except as otherwise provided herein, the public and other entities shall be able to use the Public Property during the Use Period. During the Use Period, Licensee shall not exclude the City or the Trust (if Bayfront Park is utilized) from Public Property. Licensee may request additional time to effectuate the set up and dismantling of the Race Perimeter and approval of such request to the City or Trust (if Bayfront Park is utilized) shall not be unreasonably withheld. The parties shall cooperate in good faith to pldn the set up and the tear down activities of the Raceworks Event in such a manner as to minimize, where reasonably practical, the disruption to local businesses adjacent to the Race Course, yet in a manner consistent with Licensee's reasonable ability to stage a Raceworks Events as planned and scheduled without undue expense or burden to Licensee. Licensee shall give the. City and the Trust (if Bayfront Park is utilized) a proposed schedule ("Schedule") showing the dates for installation and removal of grandstands, bleachers, safety devices, and any other apparatus or equipment to be utilized in connection with a Raceworks Event at least ninety (90) days prior to. the Event Weekend. The City Manager and the Executive Director (if Bayfront Park is utilized) shall have fifteen (15) business days to approve or disapprove the Schedule. Such approval shall not be unreasonably withheld. If no response is given in such fifeen (15) day period, the Schedule shall be deemed to have been approved by the City Manager and the Executive Director (if Bayfront Park is utilized). If the Schedule is disapproved, the Licensee shall submit a revised Schedule for approval by the City Manager and the Executive Director (if Bayfront Park is utilized) within ten (10) days of receipt of the City Manager's or Executive Director's disapproval of the original Schedule. After the conclusion of the staging of each Race Event, Licensee shall reasonably promptly remove all grandstands, bleachers, barricades, safety devices and any other safety equipment and apparatus. The City may remove any temporary devices not removed on a timely basis, or the Trust and the City, respectively, shall be reimbursed for the charges for such removal by drawing upon or exercising its rights under the Instrument that Licensee provided for the Services and for barricade removal. The charges will be the amount of such removal costs the City. Licensee shall set up for the Raceworks Events in the Park (if Bayfront Park is utilized) no more than seven (7) days prior to the Race Events and tear down two (2) days after the Race Events. 23 29. Licensee's Operations of Race Events (a) Licensee agrees to furnish, at its own cost and expense, all personal property and equipment necessary for the successful and professional operation of the Raceworks Events. (b) Neither the City nor the Trust (if Bayfront Park is utilized) shall be responsible for any goods, merchandise or equipment stored on the City's or Trust's property, or be responsible for damage to Licensee's property resulting from a power failure, hurricane, tornado, flood, fire, explosion, and or any other causes. (c) Licensee shall ensure that its employees shall at all times be neatly dressed attired in clean uniforms and wear an identification badge. (d) Licensee shall provide adequate personnel to provide quality service at all times. Licensee shall be notified of any employees of Licensee that are not deemed to be performing in the best interest of the City and/or the Trust. (e) Licensee . shall designate a management representative ("Management Representative') who shall be present at the Raceworks Events. The Management Representative shall be given the full authority by the Licensee to make on -site decisions on behalf of or for the Licensee, but not of the City or the Trust (if Bayfront Park is utilized). The Management Representative shall ensure strict compliance with all tears and conditions contained in this Agreement. The Management Representative shall serve as a liaison between the City, the Trust (if Bayfront Park is utilized) and the Licensee. Said Management Representative shall remain on call on a twenty-four (24) hour basis during an Event Weekend should he/she need to be contacted by the City or the Trust. In addition, the City and Trust (if Bayfront Park is utilized) shall be provided with a telephone number and beeper where said individual can be reached at all times twenty-four (24) hours a day, seven days a week. It is expected that the Management Representative shall respond to any request and/or concerns by the City or Trust within a maximum of twenty-four hours, or immediately on the day of a Raceworks Event. The City and the Trust (if Bayfront Park is utilized) shall designate a representative who will be similarly available to the Licensee. (f) Licensee shall provide sufficient personnel to professionally and safely conduct the promotion related activities to stage the Raceworks Events. (g) Licensee agrees to display, in plain view, any reasonable rules established by this Agreement and established by the City and the Trust (if Bayfront Park is utilized) in relation to the Raceworks Events and the operations of the Raceworks Events. No such rule shall be inconsistent with the terms of this Agreement. (h) Except when otherwise mutually agreed upon by the parties, Licensee agrees to store all equipment away from the Public Property. 24 (i) The City shall be entitled, on a complimentary basis, to one hospitality suite for forty (40) persons and forty (40) complimentary tickets for said suite for each Raceworks Event. The City shall be solely responsible for all food and beverage charges for said suite. The Trust (if Bayfront Park is utilized) shall be entitled to receive fifty (50) complimentary preferred seating tickets to any Raceworks Event. (j) Licensee shall have the right to establish and charge rates, provided, however, that Licensee shall not charge different rates to different persons admitted to the Race Perimeter. All charges shall be posted in clearly readable signs that are posted in accordance with all applicable laws. (k) Any release that Licensee obtains from a spectator or participant in a Raceworks Event shall also release the City and the Trust (if Bayfront Park is utilized) from liability. Licensee shall print language on the Raceworks Event tickets which release the City and the Trust (if Bayfront Park is utilized) from any liability for personal injury and property damage relating to the Raceworks Events. 30. Risk of Loos. Licensee agrees that neither the City nor the Trust shall be liable for any loss, injury or damage to any personal property or equipment brought into the Race Perimeter by Licensee or anyone whomsoever while making Initial or Subsequent Improvements or during any Use Period. All personal property placed or moved onto the Public Property shall be at the risk of Licensee or the owner thereof. Licensee further agrees that it shall be responsible to provide security whenever personal property either owned or used by the Licensee, its employees, agents or subcontractors is placed in the Race Course site, including property necessary for set-up and dismantling the Race Perimeter, regardless of whether or not the Race Perimeter is open to the general public. 31. Siepaee Licensee, or its authorized agent, shall post signage in the City, Park (if Bayfront Park is utilized), and outside of the City limits in conformity with existing laws, ordinances, codes and regulations of any applicable government agency. The location of signage in Bayfront Park (if Bayfront Park is utilized) shall be subject to the reasonable approval of the Executive Director. Neither the City nor the Trust shall implement any ordinances, rules and regulations which will limit Licensee's right to display and/or locate temporary signage on the Race Course or within the Race Perimeter. 25 32. Financial Obligations. DD *}�#*fit t(] taa�e►, compensation . qr y. i � ���,.7�e�iM1'ti.�, � .. ry. 7 ' �� �� �'�`g �' �'t?r g� ut�r �,} � �., Y a+T remuneration specifically set forth herein, and 'no p ib be entitled to or shall charg. any other party,anY:fees assessments, surcharges, or taxes or any other thing of value other than alt specifically► provided herein.'" 33. No Claim to Assets or Rights of Licensee. By entering into this Agreement, none of the parties are granted .any assets, rights, titles or interest to the other's assets, rights, title or interests, except as otherwise set forth in this Agreement. 34. Licensee's Records and Financial Statement. • No later than sixty (60) days prior to the Use Period, Licensee shall submit to the City Manager, for approval, a report of projected expenses, revenues, equity and bank financing to demonstrate whether the Licensee has the financial wherewithal to stage Race Event(s). Such report shall be prepared by a certified public accountant. In the event the City Manager does not approve the report and determines that the Licensee does not have the financial wherewithal to stage a Race Event, then the City Manager shall submit such report to the City Commission who shall make the final determination of the Licensee's financial ability to stage the Race Event. 35. Compliance with Municipal Motor Vehicle Racinj Act. The staging of the Race Events and temporary construction of the Race Course which is performed under this Agreement shall be in accordance with all applicable laws and regulations applying thereto, including all of the provisions of the Municipal Motor Vehicle Racing Act as set forth in Section 549.08, Florida Statues (2000). 36. Promotion by City and Trust. The City and the Trust (if Bayfront Park is utilized), respectively, through their normal operations, will cooperate in good faith with Licensee to promote Race Events through the City's departments or offices. 26 37. Quality of Events. Licensee agrees that its operation and promotion of the Race Events shall provide a quality of service commensurate with and equal to a professional motorsports event of comparable nature. 38. Taxes= Other than the ones contemplated herein, during the term of this Agreement and any extensions thereof, the City and the Trust (if Bayfront Park is not utilized) shall not levy any assessments, charges, taxes, penalties, or fees that is applicable solely against Licensee, its operations, sales, tangible orintangible property, revenues, profits, or any vendors, sponsors, racing series, sanctioning organization contracting with Licensee or any customers in relation to ownership, management, promotions, operation or staging of the Race Events. Throughout the term of this Agreement and any extension thereof, Licensee shall pay, whether assessed against the Licensee, the City or the Trust, all taxes, assessments and other governmental charges that may be levied upon the promotions, operations and any other use granted to Licensee under this Agreement, with exception to any taxes, assessments and other governmental charges may be levied upon any payment made by Licensee to City or the Trust pursuant to this Agreement. 39. Compliance With Laws. Licensee and/or its authorized agents agree to comply with applicable laws, codes (including, but not limited to, the South Florida Building Code as it may be amended), ordinances and regulations enacted or promulgated by federal, state, county, and City government including the provisions of the Charter and Code of .the City. Licensee and/or its authorized agents shall also comply with reasonable directives of the City Manager. 40. ¢dditionai Expenses. Under no circumstances will the City be liable for any costs or expenses incurred by Licensee under this Agreement or as a result of the Race Events, Support Events or related activities beyond those that are specifically set forth in this Agreement. 41. No Discrimination in Hiring. In the performance of this Agreement or any extension thereof, Licensee and/or its authorized agents shall not discriminate against any employee or applicant for employment because of sex, age, race, color, religion, ancestry or national origin. License and/or and its 27 authorized agents will take affirmative action to insure that minority applicants are employed and that employees are fairly treated during employment without regard to their sex, age, race, color, religion, ancestry, or national origin. Such action shall include, but not be Limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation. 42. Indemnification. Licensee shall indemnify, hold and save harmless, and defend the City, the Corps (if Corps property is utilized), and the Trust (if Bayfront Park is utilized), their directors, officers, employees and volunteers from and against any and all claims, demands, liens, judgments, liability, losses or damages, including but not limited to cost, expenses and attorney's fees caused by the actual or claimed negligence (active or passive) or omission of Licensee, its agents, employees, contractors, or concessionaires, or either of them, either as a sole or contributory cause, for Loss of, use of, injury to or destruction of any property and/or bodily or personal or other injuries, including death, at any time resulting therefrom, sustained by any person or persons, including officers and employees of the City, the Corps or the Trust, or in any manner attributable to any and all actions, representations, or performance of the provisions of this Agreement. Licensee shall further indemnify, hold and save harmless, and defend the City, the Corps (if Corps property is utilized), and the Trust (if Bayfront Park is utilized), their directors, officers and employees, from and against any and all claims, Liens, Iiability, losses or damages, including but not limited to cost, expenses and attorneys' fees arising out of the City's statutory obligations pertaining to defective conditions in the Race Course and appurtenances thereto, including obligations under the Florida Statutes relating to dangerous condition of public property. Notwithstanding the foregoing, it is specifically understood and agreed that Licensee shall not indemnify nor agree to hold free and harmless and defend the City or the Trust (if Bayfront Park is utilized), its officers and employees, or any of them of and from and against any and all claims, demands, liens, judgments, or otherwise, for death of or injury to any person or damage to any property whatsoever that may happen or occur as the sole result of any act or activity of the City or the Trust or any person acting for the City or the Trust or under their separate control or direction in failing to perform any act or duty imposed upon the City or the Trust by the terms of this Agreement, or as the sole result of any act or non -action by the City permitted or required pursuant to the terms of this Agreement. As between the parties to this Agreement, such Iiability shall be solely borne by the City and/or the Trust. In the event that the City or Trust is a defendant in or party to litigation as a result of negotiating or entering into this Agreement, or any extension thereof, or any prior agreement between the City and Licensee, Licensee shall indemnify the City and the Trust, their directors, officers, employees and volunteers from and against any and all monetary judgments (including related attorney's fees and costs awards). The City Attorney's Office shall vigorously defend, at its own expense, any litigation as a result of negotiating or entering into this Agreement, or any 28 extension thereof, or any prior agreement between the City and Licensee, and the City shall bear its costs of such litigation. Licensee also agrees not to sue the City, the Corps, or the Trust, their directors, officers, employees and volunteers in the event that a third party sues the City, the Corps, the Trust, their directors, officers, employees and volunteers, for injunctive relief preventing performance of this Agreement and such injunctive relief is granted. 43. Insurance. In accordance with 549.08(4)(b)(1), Florida Statutes, for Raceworks Events, Licensee shall obtain a policy of public liability and property damage insurance, in a form acceptable to the City's Risk Management Administrator, protecting the City and the Trust (if Bayfront Park is utilized), and their officers and employees, against any and all liability due to the death, injury, loss or damage to persons or property arising out of, or in any way incident to Licensee's operations during the Raceworks Events. Licensee agrees to provide such liability policy in comprehensive form, including pollution liability coverage and products and completed operations coverage, in a form acceptable to the City's Risk Management Administrator, in the amount of not less than S20 million dollars combined single limits for bodily injury and property damage and Workers Compensation insurance for its employees and contractors performing any work during Raceworks Events. The City and Trust (if Bayfront Park is utilized) shall be named insureds under these policies and name AT&T, or any other subsequent sponsor(s) of the Park (only if Bayfront Park is utilized), and the United States Army Corps of Engineers (if Corps property is utilized) as additional insureds. For all other times of the Use Period, Licensee shall obtain a policy of public liability and property damage insurance, in a form acceptable to the City's Risk Management Administrator, protecting the City and the Trust (if Bayfront Park is utilized), and their officers and employees, against any and all liability due to the death, injury, loss or damage to persons or property arising out of, or in any way incident to Licensee's operations during all other times of the Use Period. Licensee agrees to provide a liability policy in comprehensive form, including pollution liability coverage products and completed operations coverage, in a form acceptable to the City's Risk Management Administrator with combined single limits for bodily injury and property damage and Workers Compensation insurance for its employees and contractors performing any work during this period. The City and Trust (if Bayfront Park is utilized) shall be named insureds under these policies and name AT&T, or any other subsequent sponsor(s) of the Park, and the United States Army Corps of Engineers as additional insureds. The limits of such coverage shall be an amount acceptable to the Risk Management Administrator, within his/her reasonable discretion. For any Initial or Subsequent Improvements made by the Licensee, Licensee agrees to provide evidence of the General Contractor's general liability and Workers Compensation insurance with combined single limits for bodily injury and property damage. The limits of such 29 coverage shall be an amount acceptable to the Risk Management Administrator, within his/her reasonable discretion. The City, Trust (only if Bayfront Park is utilized) and the United States Amiy Corps of Engineers (only if Corp property is utilized) shall be named as additional insureds of the policies. 44. Risk Review. A copy of the certificates of insurance covering any Initial or Subsequent Improvements made by the Licensee shall be filed with the City's Risk Management Division not less than five (5) business days prior to the Licensee commencing any Initial or Subsequent Improvements. Within thirty (30) days thereafter, Licensee shall submit to the City's Risk Management Administrator copies of the policies described in this paragraph for his/her approval, which shall not be unreasonably withheld. A copy of the insurance policies evidencing coverage for aUse Period excluding the Raceworks Events shall be filed with the City's Risk Management Division not less than thirty (30) days prior to the commencement of any Use Period. A copy of the insurance policies evidencing coverage for Raceworks Events shall be filed with the City's Risk Management Division not less than thirty (30) days prior to the commencement of any Event Weekend. All policies required under this Agreement shall provide that such insurance coverage will not be cancelled or modified without at least thirty (30) days prior written notice to the City or Trust (if Bayfront Park is utilized). At least thirty (30) days prior to the expiration of any such policy a renewal policy showing that such insurance coverage has been renewed shall be filed with the City's Risk Management Division, attention to the Risk Management Administrator, 444 SW 2nd Avenue, 9th Floor, Miami, FL 33130. The City reserves the right to periodically review the sufficiency of any insurance policy required under this Agreement and to request Licensee to change the insurance coverage of any such policy. Licensee shall, upon receipt of such request, increase the limits of such insurance to any amount reasonably satisfactory to City. Any such additional amount of coverage shall be commensurate with other events of this nature and shall in no event exceed S25 million in coverage or cause Licensee more than ten percent of additional insurance premium charges in any two.year period. 45. Audits.. During the term of this Agreement, and any extension thereof, Licensee shall deliver to the City and Trust (if Bayfront Park is utilized) a certified statement, executed by Licensee's Chief Financial Officer, stating the number of all paid admissions for all of the Raceworks Events, accompanied by any such other documents as may be necessary to support the Chief 30 Financial Officer's certification, such as a ticket manifest, sales journals relating to ticket sales, complete box office statements of all tickets sold and any other appropriate records as may be reasonably required by good accounting practices for records of tickets sold for all Raceworks Events. If Licensee uses a third party to sell tickets for Raceworks Events, Licensee shall include in its certified statement the ticket sales by the third party and include with the report any and all documentation regarding the tickets sales by the third party. In the event that the City Manager or designee determines, in his/her sole discretion, that there is a discrepancy in the amount remitted by the Licensee for the City and Park's fees, then the City shall have the right at all reasonable times, upon reasonable notice and during normal business hours, to examine any and all of Licensee's books and records as may be required by good accounting practices, to determine and verify all of the ticket sales for Raceworks Events. All books and records shall be maintained and kept by the Licensee within the corporate limits of Miami -Dade, County. The City Manager shall have the discretion to require the installations of any reasonable additional accounting methods as he may deem reasonably necessary so long as such installations are consistent with professional accounting standards as applied in the industry. The City or the Trust (if Bayfront Park is utilized), at their sole expense, may, at reasonable times and for a period of up to three (3) years following the expiration of the term of this Agreement or any extension, earlier termination thereof, audit, or cause to be audited, those books and records of Licensee. Licensee agrees to maintain all such books and records at its principal place of business. As between the City and the Trust, only one party may audit Licensee in a given year. 46. Insvections. City shall have the right, at all reasonable times and upon reasonable notice, to make whatever inspections City deems reasonably necessary to determine if Licensee is complying with the terms and conditions of this Agreement and any applicable laws. Licensee agrees to provide City with reasonable access to its operations for such inspection purposes. Licensee does not possess the right to exclude the City from any property. 47. Public Records. Licensee understands that the public shall have access, at all reasonable times, to City contracts, subject to the provisions of Chapter.119, Florida Statutes, and agrees to allow access by the City and the public to all documents subject to disclosure under applicable law. 48. Nondiscrimination Licensee represents and warrants to the City that Licensee does not and will not engage in discriminatory practices and that there shall be no discrimination in connection with 3I Licensee's use of the Race Course or presentation of the Race Events or Support Events on account of race, color, sex, religion, age, handicap, marital status or national origin. 49. Affirmative Action. Licensee shall have an Affirmative Action/Equal Employment opportunity policy and shall institute a plan for its achievement which will require that action be taken to provide equal opportunity in hiring and promoting for women, minorities, the disabled and veterans. Such plan will include a set of positive measures which will be taken to insure nondiscrimination in the work place as it relates to hiring, firing, training and promotion. In lieu of such a policy/plan, Licensee shall submit a Statement of Assurance indicating that its operation is in compliance with all relevant civil rights laws and regulations. 50, Conflict of Interest. Licensee is aware of the conflict of interest laws of the City (Miami City Code Chapter 2, Article V), Dade County, Florida (Dade County Code, Section 2-11.1 et. seq,) and of the State of Florida as set forth in the Florida Statutes, and agrees that it will fully comply in all respects with the terms of said laws and any future amendments thereto. Licensee further covenants that no person or entity under its employ, presently exercising any functions or responsibilities in connection with this Agreement, has any personal financial interests, direct or indirect, with the City or the Trust. Licensee further covenants that, in the performance of this Agreement, no person or entity having such conflicting interest shall be utilized in respect to services provided hereunder. Any such conflict of interest(s) on the part of Licensee, its employees or associated persons, or entities must be disclosed in writing to the City. 51. Late Payments. Should Licensee fail to make any payment to the City or the Trust as provided in this Agreement, a late payment charge of one percent (1 %) of the amount due the City or the Trust will be assessed monthly against the Licensee commencing on the due date of such payment, until such amount is paid. In the event that Licensee shall fail to pay any of its financial obligations to the City or Trust within five (5) months after being past due, then Licensee shall be deemed in default of this Agreement. 32 52. Failure to Stage Events. During this Agreement, or any extension thereof, if Licensee fails to stage at least one Race Event, Licensee shall be in default, unless such failure is as a result of I) an act of the City or the Trust which prevents and makes impossible for the Licensee to perform its obligation to conduct a Race Event, 2) the Licensee's failure to obtain permission from Bayside Marketplace Limited Partnership or other right-of-way holder for use of the property that they own or possess and which is essential to stage, establish, maintain and/or operate the Race Course and Race Perimeter for a Race Event, or 3) conditions of force majeure, as that term is hereinafter defined, which prevents the Licensee from performing its obligations hereunder. It is expressly understood that Licensee is not obligated to stage two Race Events annually during the term of the Agreement, or any extension thereof, and its failure to stage more than one Race Event shall not in any sense be deemed a default or breach of this Agreement. In the event that the Licensee fails to conduct a Race Event within any two (2) year period, the City and the Trust have the right to terminate this Agreement by giving Licensee written notice thereof. If thereafter, Licensee fails to cure said default by staging a Race Event within nine (9) months of the notice, the Agreement shall be deemed terminated. This provision shall not apply if the reason for the failure to stage a Race Event is not the Licensee's fault, but is due to l) an act of the City or the Trust which prevents and makes impossible for the Licensee to perform its obligation to conduct a Race Event, 2) the Licensee's failure to obtain permission from Bayside Marketplace Limited Partnership or other right-of-way holder for use of the property that they own or possess and which is essential to stage, establish, maintain and/or operate the Race Course and Race Perimeter for a Race Event, or 3) conditions of force majeure as that term is hereinafter defined, which prevent the Licensee from performing its obligations hereunder. 53. Notices. All notices or other communications which shall or may be given pursuant to this Agreement shall be in writing and shall be delivered by hand, telecopy, or registered mail addressed to the other party at the address indicated herein. Such notice shall be deemed given on the day on which hand delivered; faxed or, if by mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. If to City of Miami: City Manager City of Miami 444 SW 2nd Avenue I0th Floor Miami, Florida 33233-0708 If to the Trust: Executive Director Bayfront Management Trust 33 With a copy to: 301 North Biscayne Boulevard Miami, Florida 33132 City Attorney City of Miami 444 SW 2nd Avenue Suite 945 Miami, Florida 33233-0708 If to Licensee: Mr. Peter J. Yanowitch President Raceworks, LLC 800 Brickell Avenue Suite 550 Miami, Florida 33131 If to the United States of America Michelle A. Wolfe; Attorney Advisor U.S. Army Corps of Engineers Real Estate Division P.O. Box 4970 Jacksonville, Florida 32232-0019 54. Waiver Any waiver by either party or any breach by either party of any one or more of the covenants, conditions or provisions of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or any covenant, condition or provision of this Agreement, nor shall any failure on the part of the City or Trust to require or exact full and complete compliance by Licensee with any of the covenants, conditions or provisions of this Agreement be construed as in any manner changing the terms hereof to prevent the City or Trust from enforcing in full the provisions hereto, nor shall the terms of this Agreement be changed or altered in any manner whatsoever other than by written agreement of the City and Trust and Licensee. 55. Force Maleure and Impossibility. The parties shall be excused from performance of any obligation hereunder when such performance has been delayed, hindered and prevented by any cause or causes beyond the parties reasonable control, including impossibility of performance, which shall include but not be 34 limited to, any act of government or governmental agency, labor disputes, riots, civil commotion or insurrection, war or war -like operations, invasion, rebellion, military or usurped power, sabotage, the acts of superior governmental authorities, fires or other casualties, natural disasters, hurricanes, or acts of God or sudden failure of subsurface structures. Should force majeure cause the Race Events or cause the use of the Race Course or Race Perimeter to be suspended and it prevents or makes it impossible for the Licensee from conducting or promoting at least one race during any given year, then the term of this Agreement shall be extended for a one year period for each year lost as a result of force majeure or such impossibility. However, if the force majeure or impossible circumstance is permanent and incapable of being cured, then either party may terminate this Agreement by giving the other party thirty (30) days written notice of such termination. 56. Failure to Obtain National or international Sanctioned Event. Five business days before the Use Period, Licensee shall present to the City Manager and the Trust proof that it has an agreement with a national or international sanctioning organization. Licensee has obtained a letter of initial commitment from the American Le Mans Series to promote a Race Event in Miami. The letter is attached hereto as Exhibit _ and is incorporated and made a part of this Agreement. . In the event that the Licensee is unable to obtain agreements from a national or international sanctioning organization for a Race Event or there is the cancellation of such agreement with a national or international sanctioning organization, then Licensee shall be in default. The default shall be cured upon Licensee demonstrating that it has obtained an agreement with a national or international sanctioning organization. During the time of default, in the City Manager's sole discretion and with the City Manager's written approval, the Licensee may stage an unsanctioned race event. The City Manager may, at his sole discretion, impose additional conditions upon Licensee to mitigate the effect of having an unsanctioned race event. However, the staging of an unsanctioned race event is not a cure for the default. In no event shall the provisions of this section impair the provisions of Section 16 entitled "Scheduling of Event Weekends". 57. Restoration of Public Property. At the end of each Use Period and upon the termination of this Agreement or any extension thereof, Licensee shall restore Public Property, personal property and fixtures of the City or the Trust (if Bayfront Park is utilized) to the same condition in which the Public Property was before the Licensee used the Public Property, except for normal wear and tear or any destruction of the Public Property as a result of force majeure, so that Public Property is suitable for its normal use. Licensee shall develop a mitigation plan for each Raceworks Event which shall be submitted with its application for a Race Permit. This obligation of the Licensee does not apply to restoring the condition of Public Property to the condition that it was in prior to the 35 construction of the Initial Improvements delineated in Paragraph 17. With exception of the foregoing, Licensee shall repair any damaged caused to Public Property, personal property or fixtures of the City and Trust as a result of a Raceworks Event and shall restore Public Property to the same condition that is was in before the respective Raceworks Event occurred. In the event of termination of this Agreement or any extension thereof, or upon the expiration of the term of this Agreement, or any extension thereof, Licensee shall promptly, remove all personal property, fixtures and equipment from the Public Property. In the event Licensee fails to remove its personal property, equipment and fixtures from the Public Property within a sixty (60) day period, said property shall be deemed abandoned and thereupon shall become the sole personal property of the City and Trust. The City and Trust, their sole discretion and without liability, shall remove the same and the Licensee shall reimburse the City and Trust for all reasonable expenses associated with such removal and disposal. 58. Compliance with Environmental Laws. Licensee represents and warrants that during the term of this Agreement, or any extension thereof, it will not use or employ the Public Property, or any other .City -owned property, to handle, transport, store or dispose of any Hazardous Materials and that it will not conduct any activity on Public Property or City -owned property in violation of any applicable environmental laws. Notwithstanding the foregoing, Licensee may handle, transport, store or dispose of Hazardous Materials as necessary for Licensee's Race Events on Public Property as long as such handling, transportation, storage and disposal is performed in strict compliance with all applicable laws and regulations. Licensee hereby indemnifies and holds harmless the City and the Trust and their respective officers, employees and agents, from and against all actions and Liabilities relating to the Licensee's handling, transportation, storage and disposal of Hazardous Materials on or about the Public Property or City -owned property. 59. Invalidity. In the event that any non -material provision of this Agreement shall be held to be invalid for any reason, such invalidity shall not affect the remaining portions of this Agreement and the same shall remain in full force and effect. 60. Time of Essences It is expressly agreed by the parties hereto that time is of the essence with respect to this Agreement. If the final day of any period falls on a weekend or legal holiday, then the final day of said period or the date of performance shall be extended to the next business day thereafter. 36 61. No Interpretation Against Draftsmen, The parties agree that no provision of this Agreement shall be construed against any particular party and each party shall be deemed to have drafted this Agreement. 62. Further Acts. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by the parties, the parties each agree to perform, execute and/or deliver or cause to be performed, executed and/or delivered any and all such further acts, deeds and assurances as may be necessary to consummate the transactions contemplated hereby. 63. Litieatioa. Any dispute herein shall be resolved in the courts of Dade County, Florida. The parties shall attempt to mediate any dispute without litigation. However, this is not intended to establish mediation as a condition precedent before pursuing specific performance, equitable or injunctive relief. 64. Third Party Beneficiary. This Agreement is solely for the benefit of the parties hereto and no third party shall be entitled to claim or enforce any rights hereunder except the United States Army Corps of Engineers. 65. No Partnership. Nothing contained herein shall make, or be construed to make any party a principal, agent, partner or joint venturer of the other. 66. Amendments. No alterations, amendments or modifications hereof shall be valid unless executed by an instrument in writing by the parties with the same formality as this Agreement. Neither this Agreement, nor any term hereof, can be changed, modified, or abandoned, in whole or in part, except by instrument in writing, and no subsequent oral agreement shall have any validity whatsoever. 37 67. Miscellaneous. Title and paragraph headings are for convenient reference and are not a part of this Agreement. 68. Entire Agreement. This Agreement and represents the entire understanding between the parties hereto as to the subject matter hereof, and supersedes all prior written oral negotiations, representations, warranties, statements or agreements between the parties hereto as to the same. There are no promises, terms and conditions, or obligations other than those contained herein, and no party has relied upon the statements or promises of the representatives of any party hereto. 69. Authority. Each of the parties hereto acknowledges it is duly authorized to enter into this Agreement and that the signatories below are duly authorized to execute this Agreement in their respective behalf. 70. Approval By the United States Army Corps of Engineers The United States of America, U.S. Army Corps of Engineers ("Army Corps") owns a portion of Bayfront Park and has leased that portion to the City under a lease agreement dated August 16, 1990 ("Corps Lease"). In the event that Bayfront Park or any other property owned or wader the control of the Army Corps is utilized, then this Agreement is subject to the terms and conditions of the Corps Lease (if Bayfront Park is utilized) or any other respective agreement with the Army Corps, and shall not be binding until the City receives written approval of this Agreement from the Army Corps. In the event that the Army Corps does not grant its approval of this Agreement, the parties will endeavor to locate another site for the Race Course and Race Perimeter. However, if the parties are not able to agree upon the location and terms of the agreement, then this Agreement shall be terminated upon thirty (30) days notice to the other parties to this Agreement. (over) IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers and hereunto duly authorized as of the date first above written. 38 ATTEST: RACEWORKS, LLC, a Delaware corporation. By: o!' "i- x h- fl s r Peter ).owitch, President ATTEST: Priscilla A. Thompson City Clerk WITNESS ruvau APPROVED AS TO INSURANCE REQUIREMENTS: Sue Weller, Acting Risk Management Administrator 1WIA4RV0111373737+0lN61011.13003L 2U09l0.010100 CITY OF MIAMI, a municipal corporation of the State of Florida BAYFRONT PARK MANAGEMENT TRUST, a limited agency and entality of the City of Miami thy Sc „ : , 7 , Inter rector 39