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STATE OF TEXAS §

COUNTY OF HIDALGO §

CITY OF EDINBURG §

AGREEMENT BETWEEN CITY OF EDINBURG AND NAME OF OPERATOR FOR

THE RARCETRACK (DRAGSTRIP) AT THE SOUTH TEXAS INTERNATIONAL

AIRPORT AT EDINBURG

The City of Edinburg, Hidalgo County, Texas, a municipal corporation, (hereinafter called "City") and NAME OF CONTRACTOR (hereinafter referred to as "Operator" or "Lessee"), are the parties to this Racetrack Lease & Operation Agreement.

RECITALS

WHEREAS, the City owns and operates the South Texas International Airport at Edinburg, including an abandoned taxiway located on airport property that has been utilized as a drag strip (racetrack); and

WHEREAS, the City issued Request for Proposals (RFP) No. 000113 seeking qualified organizations or individuals to lease and operate the drag strip (racetrack) located at the South Texas International Airport at Edinburg; and

WHEREAS, the Operator represents that it possesses the experience, qualifications, and professional capability necessary to undertake the lease, management, and operation of a racetrack facility; and

WHEREAS, the City desires to enter into an agreement with the Operator for the lease and operation of the racetrack pursuant to RFP No. 000113, Operation of the Drag Strip (Racetrack) at the South Texas International Airport at Edinburg, and the Operator’s proposal submitted in response thereto, which is attached hereto and incorporated herein as Exhibit “A.”

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the City and Operator agree as follows:

SECTION I

LEASE AND OPERATION OF RACETRACK

The Operator agrees to lease, manage, and operate the racetrack facility located at the South Texas International Airport at Edinburg, as described in this Agreement and in Exhibit “A.”

SAMPLE

D

RAFT AGREEMENT

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The Operator shall conduct all racetrack operations in accordance with the terms and conditions of this Agreement, all applicable federal, state, and local laws, and any applicable airport regulations.

SECTION II

BASIC SERVICES OF OPERATOR

The Operator shall perform the Scope of Services for the Racetrack Lease and Operations as specifically identified in Exhibit “A” attached hereto and incorporated by reference.

In performing such services, the Operator shall, at its sole cost and expense:

Provide all necessary labor, management, supervision, equipment, furnishings, and materials required to operate the racetrack facility.

Maintain all required insurance coverage as specified in this Agreement.

Provide all services and operational support necessary to properly conduct racetrack activities and events; and

Comply with all applicable safety, operational, and regulatory requirements.

Upon execution of this Agreement, the City shall provide the Operator with written authorization to proceed with the lease and operational activities contemplated herein.

SECTION III

TERMS OF THE AGREEMENT

The term of this Agreement shall be for a one-year term, beginning on ______, ______, 20____ and terminating on ______, ______, 20____. Operator may request a renewal term by written request to the City sixty (60) days prior to the expiration of each then current term. If approved by the City, the city shall provide the Operator with a written notice of approval of such renewal. The City is not obligated to approve renewals and the Agreement shall terminate at the end of the ten current term, absent written approval from the City otherwise.

SECTION VI

PAYMENT AND FEES

Operator agrees to pay City on a monthly basis as specified below:

A. Payment of the lease and racetrack operations shall be made as Follows:

SAMPLE

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$ ________________ from the terms of the agreement, payment is due on the 1st of the month.

B. _____% from terms of the agreement, monthly Revenue Sharing.

C. Invoice shall be completed and processed in accordance with City regulations.

D. Operator shall pay a late charge of $500 if the full rent payment is not received by City by the fifth (5th) day of the month in which the payment is due and to pay an additional $500 every two weeks thereafter if any amount of rent or late fees remain due.

E. For every renewal year beyond this one-year term, the lease payment may be mutually agreed upon prior to each renewal period. lf the agreement cannot be reached, however, the City in its sole discretion may increase the rates to an amount that the City determines in its sole discretion is appropriate. Payments owed during any renewal term are due on the 1st of the month.

F. lf any payment required by this Agreement is not paid when due, Operator agrees that City will have the option to terminate this Agreement, resume possession of the property, and recover immediately from Lessee the remainder of the payments owed during the then current term in addition to all other payments then owed, including late charges.

G. Operator agrees that the City will have a lien against all goods, equipment, furniture, and other personal property of Lessee brought, stored, or kept on the leased premises during the lease term, in the aggregate amount of all rent, damages, and other sums that may at any time be owed by Lessee to City under the lease. ln the event of any default by Lessee, City may foreclose the lien in the same manner that a mortgage would be foreclosed, and, in that event, Operator shall be obligated for all court costs and reasonable attorneys' fees.

SECTION V

RESPONSIBILITY OF THE CITY

City will facilitate Operator by the following tasks:

A. Facilitate access to and make provisions for Operator to enter upon public property as required for Operator to lease and operate the racetrack.

SAMPLE

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B. Give prompt written notice to Operator whenever City observes or otherwise becomes aware of any act or omission not in compliance with this agreement.

SECTION VI

RESPONSIBILITIES OF OPERATOR

A. The Operator shall lease & operate the racetrack operation to accomplish the terms of this Agreement and in accordance with Exhibit “A”, Operator shall maintain the facility including:

a. Racetrack surface maintenance

b. Trash removal

c. Restroom servicing

d. Event cleanup

e. Grounds maintenance and mowing

B. The Operator shall be and shall remain liable, in accordance with applicable law, for all damages to the City caused by the Operator's negligent performance in connection with the lease and operation of the racetrack pursuant to this Agreement.

C. C, The Operator's obligations under this clause are in addition to the Operator's other express or implied assurances under this Agreement, Exhibit “A”, and applicable laws and in no way diminish any other rights that the City may have against the Operator for failure to perform as specified herein and Exhibit “A”.

D. Operator's property and equipment must be fork-lift ready for removal in order for the

Operator to meet its obligations under this agreement.

E. Upon termination of the contract, the Operator shall remove all Operator's owned property, equipment, etc., within sixty (60) days from the termination date; provided however that during such removal period, Operator shall continue to maintain the insurance requirements provided for under this Agreement.

SECTION VII

PERMITTED USE

Operator shall use the premises solely for racetrack and motorsports related activities including:

SAMPLE

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Drag racing events

Motorsports exhibitions

Private racing events

Facility rentals

Sponsorship events

Concessions and vendor operations

No other used shall be permitted without written approval from the City.

SECTION VIII

SAFETY REQUIREMENTS

Operator shall implement comprehensive safety protocols including:

A. Crowd control plans: The operator is required to develop, submit, and implement a comprehensive Crowd Control Plan for all events and operations conducted on the premises. The plan shall be subject to review and approval by the City prior to any event or activity involving public attendance.

At a minimum, the Crowd Control Plan shall address the following:

1. Anticipated attendance and capacity limits

2. Site layout, including ingress and egress points

3. Traffic control and parking management

4. Pedestrian flow and crowd movement strategies

5. Staffing levels, including trained security personnel and event staff

6. Coordination with local law enforcement, fire, and emergency medical services

7. Emergency response procedures, including evacuation plans and communication protocols

8. Placement of barriers, fencing, and signage

9. ADA accessibility and accommodations

The operator must ensure that all crowd control measures are implemented in accordance with applicable safety standards and best practices. The proposer shall be responsible for coordinating with the City’s Police Department, Fire Marshal’s Office, and other relevant agencies as required.

SAMPLE

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No event shall be held without an approved Crowd Control Plan in place. Failure to comply with this requirement may result in denial of event approval, suspension of operations, or other remedies as determined by the City.

B. Emergency Medical Services Coordination Requirement: The Operator is required to coordinate and maintain uninterrupted emergency medical services (EMS) coverage throughout the term of the agreement. To ensure continuity of care and compliance with existing service standards, the proposer must enter into a separate, independent agreement with the City’s current ambulance service provider. This agreement shall be executed outside of and independent from the City’s contract under this solicitation.

This requirement is intended to preserve established emergency response protocols, maintain service reliability, and ensure seamless integration with the City’s public safety operations. The proposer shall be solely responsible for all coordination, communication, and operational integration necessary to support EMS response, and must demonstrate the ability to effectively collaborate with the existing provider while meeting all applicable regulatory, safety, and performance standards.

C. Fire protection coordination: The Operator is responsible for coordinating all fire protection and life safety measures associated with operations and events conducted on the premises. All activities shall comply with applicable local, state, and federal fire codes, regulations, and standards, and shall be subject to review and approval by the City’s Fire Marshal’s Office.

At a minimum, the proposer shall:

o Coordinate with the Fire Marshal’s Office for plan review, site inspections, and approvals prior to operations and events o Ensure adequate fire protection systems are in place, including fire extinguishers, fire lanes, access routes, and, where applicable, fire suppression systems o Maintain clear and unobstructed emergency access for fire apparatus at all times o Develop and implement emergency response procedures, including fire evacuation plans and communication protocols o Ensure all staff are trained in fire safety procedures and the proper use of fire protection equipment o Comply with occupancy limits and all life safety requirements for temporary and permanent structures

SAMPLE

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The proposer shall promptly correct any deficiencies identified by the Fire Marshal’s Office and shall not conduct operations or events without required approvals. Failure to comply with fire protection requirements may result in suspension of operations, revocation of event approvals, or termination of the agreement, as determined by the City.

D. Security personnel: The Operator is required to provide adequate security personnel for all operations and events conducted on the premises to ensure the safety of patrons, staff, and City property.

The Operator is required to hire off-duty officers from the City of Edinburg Police Department for security services. The number of officers and level of coverage shall be determined based on the size, scope, and nature of the event or operation, and shall be coordinated with and approved by the Edinburg Police Department.

The Operator is responsible for all costs associated with hiring off-duty officers and shall coordinate scheduling, staffing levels, and operational needs directly with the Police Department in accordance with City policies and procedures.

Failure to provide the required security personnel may result in denial of event approval, suspension of operations, or other remedies as determined by the City.

E. Track safety barriers: The selected proposer shall be responsible for the installation, maintenance, and operation of all track safety barriers necessary to ensure the safety of participants, spectators, and staff. All safety barriers shall comply with applicable industry standards, sanctioning body requirements (e.g., NHRA, IHRA, or equivalent), and all local, state, and federal safety regulations.

At a minimum, the proposer shall:

Install appropriate safety barriers along the track, spectator areas, and restricted zones, including guardrails, concrete barriers, fencing, and debris containment systems as required.

Ensure all barriers are properly designed, engineered, and installed to withstand expected operational impacts and conditions.

Maintain all barriers in good condition and promptly repair or replace any damaged or deficient components.

Provide adequate separation between racing areas, staging areas, pit areas, and spectator zones.

SAMPLE

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Coordinate barrier placement and safety measures with the City’s Fire Marshal’s Office and any applicable regulatory or sanctioning bodies.

No racing or related activities shall occur without all required safety barriers in place and approved. Failure to comply with these requirements may result in suspension of operations, denial of event approvals, or termination of the agreement, as determined by the City.

F. Traffic management plans: The selected operator is required to develop, submit, and implement a comprehensive Traffic Management Plan for all operations and events conducted on the premises. The plan shall be subject to review and approval by the City prior to any event or activity that may impact traffic flow or public access.

At a minimum, the Traffic Management Plan shall address the following:

Estimated attendance and corresponding vehicle volumes

Designated ingress and egress routes for vehicles, including primary and secondary access points

On-site circulation patterns and traffic flow control

Parking plans, including capacity, layout, and overflow accommodations

Coordination of traffic control measures, including signage, barricades, and traffic control devices

Deployment of traffic control personnel, including coordination with the City’s Police Department

Emergency vehicle access and dedicated emergency routes at all times

Measures to minimize traffic congestion and impacts to surrounding roadways and neighborhoods

Coordination with TxDOT and other applicable agencies, if required

The Operator shall be responsible for implementing all approved traffic control measures and ensuring compliance with applicable laws, regulations, and safety standards. All traffic control devices and practices shall conform to the Texas Manual on Uniform Traffic Control Devices (TMUTCD), as applicable.

No event shall be conducted without an approved Traffic Management Plan in place.

Failure to comply with this requirement may result in denial of event approval, suspension of operations, or other remedies as determined by the City.

G. Health Department Permits: The operator shall be required to obtain and maintain all applicable permits and approvals from the appropriate Health Department prior to

SAMPLE

9 | P a g e the operation of any concession stands or facilities serving food or beverages. This requirement applies to all food and beverage services, including temporary, mobile, or permanent concessions.

The Operator must ensure full compliance with all local, state, and federal health regulations, including food safety, sanitation, and inspection requirements. All permits must remain valid and in good standing throughout the term of the agreement, and failure to maintain such permits may result in suspension of operations or other remedies as determined by the City.

Safety plans shall be submitted to the City prior to events exceeding attendance thresholds.

SECTION IX

CAPITAL IMPROVEMENTS

Operator may propose improvements to the racetrack facility subject to written approval from the City. Ownership of improvements shall remain with the City unless otherwise agreed.

A. Building Permits, Code Compliance, and Occupancy Restrictions: The operator is required to obtain all necessary building permits and approvals from the City prior to the construction, installation, or modification of any structures on the premises. All work must be performed in accordance with applicable local, state, and federal laws, ordinances, and building codes.

The operator is responsible for maintaining all existing and new structures in full compliance with all applicable building, fire, safety, and accessibility codes throughout the term of the agreement. Any deficiencies identified by the City or applicable regulatory authorities shall be promptly corrected at the proposer’s sole expense.

Residential use of the premises is strictly prohibited. The Operator must ensure that no individual resides, temporarily or permanently, on the property at any time. Any violation of this provision will be considered a material breach of the agreement and may result in termination or other remedies as determined by the City.

B. Fuel, Oil, and Lubricants Compliance Requirements: The selected proposer shall ensure that any and all fuel, oil, and lubricants utilized, stored, or handled on the premises comply with all applicable local, state, and federal laws, regulations, and

SAMPLE

10 | P a g e industry standards. This includes, but is not limited to, requirements related to storage, containment, handling, labeling, transportation, and disposal.

The proposer shall implement appropriate safety measures, spill prevention and control practices, and environmental protections in accordance with applicable regulatory standards. All materials shall be properly managed to prevent contamination, hazards, or damage to City property or the environment.

Any installation, placement, or construction of fuel tanks, storage systems, dispensing equipment, or related structures—whether temporary or permanent— must be reviewed and approved by the City’s Building Safety Department and the Fire Marshal’s Office prior to installation. The proposer shall be responsible for submitting all required plans and documentation and obtaining all necessary approvals before commencing any such work.

Failure to comply with these requirements may result in corrective action, suspension of operations, or termination of the agreement, as determined by the City.

SECTION X

FAA & AIRPORT COMPLIANCE

Operator (Operator) shall comply with all applicable Federal Aviation Administration (FAA) regulations, Airport Minimum Standards, Grant Assurances, and all rules governing operations at South Texas International Airport at Edinburg. The Operator acknowledges that the Racetrack is located on Airport property and agrees to operate in a manner that does not interfere with aviation operations, airspace safety, or Airport security.

Operator shall not enter or permit any person, vehicle, or equipment to enter the Air Operations Area (AOA) without prior written authorization from the Airport Director.

Any approved access must comply with TSA, FAA, and Airport security training, badging, and escort requirements.

Operator shall ensure that all lighting, structures, temporary installations, or event-related equipment comply with FAA obstruction standards and shall not create hazards to navigable airspace and aircraft operations. Operator, participant or attendee shall be prohibited from operating any boom, crane, manlift, bucket truck, portable tower, aerial platform or similar equipment or appurtenance from exceeding forty-five feet (45ft) above ground level. Operator, participant, or attendee shall be prohibited from conducting or

SAMPLE

11 | P a g e allowing any pyrotechnics, fireworks, aerial mortars, or any similar or incendiary displays.

Operator, participant, or attendee shall be prohibited from operating searchlights or conducting any type of laser light show. Operator, participant, or attendee shall be prohibited from operating any Unmanned Aerial System, Unmanned Aerial Vehicle, drone, aerial camera, balloon, aerostat, or similar aerial devices without Operator obtaining specific advance permission from the Airport Director. The City reserves the right to require removal or modification of any structure or activity that may impact aviation safety.

Operator shall comply with all federal, State of Texas, City, drag racing sanctioning body’s environmental rules and regulations, and Airport environmental rules, regulations, best management practices, Storm Water Pollution Prevention Program, and Spill Prevention Control and Countermeasures, pertaining to fuel handling, petroleum, oil, and lubricants handling, in-house spill prevention and stormwater protection programs, and hazardous material management. Any fuel storage, chemicals, or regulated materials must be properly stored, reported, and managed in accordance with federal, state, City of Edinburg Fire Marshal’s Office, and Airport environmental policies.

Operator shall coordinate all major events with Airport Administration to ensure compatibility with Airport operations, emergency response readiness, and safety planning.

The City reserves the right to suspend or modify operations if aviation safety or regulatory compliance is at risk.

SECTION XI

MINIMUM INSURANCE REQUIREMENTS

ln accordance with City ordinances, Contractor shall be required to hold the following minimum insurance coverage throughout the duration of this agreement:

A. Workers’ Compensation ln accordance with the State statute

B. Comprehensive General Liability

1. Bodily Injury $1,000,000 each person $1,000,000 each occurrence

2. Property Damage $1,000,000 each occurrence $1,000,000 each aggregate or $1,000,000 combined single limits

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C. Comprehensive Auto Liability

1. Bodily Injury

$100,000 each person $500,000 each occurrence

2. Property Damage $100,000 each occurrence $100,000 aggregate or $500,000 combined single limits

D. City’s Protective Liability

1. Bodily Injury

a. $1,000,000 each person

b. $1,000,000 each occurrence

2. Property Damage $1,000,000 each occurrence $1,000,000 each aggregate or $1,000,000 combined single limits

E. Must adhere by the National Hot Rod Association Insurance Standards,

1. Wavier and Release from Liability

With respect to racing events at drag racing sanctioning bodies’-associated venues, the track operator must maintain a guaranteed system of regularly secured signed Waiver and Release forms from all participants allowed to enter restricted areas and to prevent restricted area credentials from being issued before participants have properly signed and executed the Waiver and Release form. For minor participants drivers (under eighteen [18] years of age) the member track must have a system to secure Minor Waiver and Release forms signed by the parent(s) or legal guardian(s) of each minor participant driver.

2. Where used, the policy must include the following definitions

Restricted area may not be more inclusive than the advance staging area, burn out area, competition area, shut down area, staging lanes, return road area, and any other area with barriers, fences, and/or structures separating the general public from the racing activities, and which requires special authorizations, Credentials, or Permission to enter, or any area Where the

SAMPLE

13 | P a g e general public is restricted or prohibited, The definitions of the above terms are as follows:

a. Advanced staging area * means the area between the staging lanes and the burnout area.

b. Burnout area - means the area between the advance staging area and the competition area where participants conduct the usual preparation and testing of racing vehicles immediately preceding a racing event.

c. Competition area - means the racing surface beginning at the starting Iine and ending line at the finish line.

d. Shut down area - means the area located from the finish line and beyond where the racing vehicles enter the return road area.

e. Return road area - means the area where the racing vehicles exit the shutdown area and proceed to the pit area.

f. Pit area - means the area used to register the participants and prepare the racing vehicles for competition.

The participants’ definition should be defined to include racing vehicle drivers, mechanics, crew members, pit persons, officials of the race event, Announcers, ambulance Crews, Wrecker Truck Crews, new persons, photographers, pit gate workers, motor sport event promoters, and all other people involved in the actual event, other than members of the public.

Evidence of the above insurance coverage shall be required prior to final execution of the agreement. The City shall be listed as an additional insured.

3. The participants definition should be defined to include racing vehicle drivers, mechanics, crew members, pit persons, officials of the race event, announcers, ambulance crews, wrecker truck crews, new persons, photographers, pit gate workers, motor sport event promoters, and all other persons involved in the actual event, other than members of the general public.

a. Participant Accident Insurance – This is coverage for participants in drag racing events and includes excess Accident Medical Insurance, Accidental Death and Dismemberment Insurance and Weekly Accident Disability Benefits.

1. Participant Accident Insurance or approved Self-insurance must contain the following minimum coverage, conditions and terms:

SAMPLE

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I. $100,000 Accidental Death & Dismemberment Benefit to individual participants injured at NHRA or IHRA member tracks (no deductible paid by the participant).

II. $150,000 Blanket Accident Medical Expense benefit on an Excess or Primary basis to individual participants injured at NHRA or IHRA member tracks (no deductible paid by the participant).

III. $1000 Weekly Disability benefits payable up to 52 weeks.

b. The policy must feature at least the coverages and benefits outlined and must at a minimum include all coverages provided by the drag racing sanctioning body’s Catastrophic Accident Policy, a copy of which is available from NHRA and IHRA:

1. Coverage for all participants with no licensing or age restrictions.

2. No jet truck exclusion.

3. No suspension of insurance clause.

4. $5,000 benefit for loss of sight in one eye, loss or use of one limb.

5. Tuning and Testing benefits at the same minimum NHRA or

IHRA Member Track Medical and AD&D limits.

SECTION XII

TERMINATION

A. Either party to this agreement shall have the right to terminate this Contract at any time, and for any reason, with or without cause, after thirty (30) days' written notice and any payment requested shall be made on a prorated basis ending on the termination date.

B. In the event of termination pursuant to this Section, Operator will remove all Operator's owned property and equipment from City owned property within sixty (60) days from the termination date; provided however that during such removal period, Operator shall continue to maintain the insurance requirements provided for under this Agreement.

SECTION XIII

INDEMNIFICATION

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A. Operator agrees to and shall indemnify, hold harmless and defend the City its officers, agents and employees from any and all claims, losses, causes of action and damages, suits and liability of every kind, including all expenses of litigation, court costs, and attorney's fees for injury to or death to any person or for damage to any property, arising out of or directly connected with the negligent or willful conduct of the Operator, its agents, officers and employees, carried out in furtherance of this agreement.

B. Operator agrees to assist City in defense of claims or litigation brought against the City related to this project, including any claims related to design.

SECTION XIV

RESERVATIONS

This Agreement shall be subordinate to the provisions of any existing or future Agreement between the City and the United States of America relative to the operation and maintenance of the airport, the execution of which has been required as a condition precedent to the expenditures of Federal funds for the development of the airport.

The CITY reserves the right to further develop or improve the airport.

During time of war or national emergency, the United States Government shall have the right of exclusive possession and control of the airport for purposes of National Defense and in the event the provisions of this Agreement, insofar as they are Inconsistent with the provisions of such obligation to the United States, shall be suspended, The CITY agrees in the event of such suspension, the term of this Agreement shall be extended for a period equal to the suspension, so that the LESSEE shall be entitled to the powers and the privileges and benefits for this Agreement for the same term as if there were no suspension.

Force Majeure: Neither party shall be deemed in violation of this Agreement if it is prevented from performing any of its obligations hereunder by reason of labor disputes, acts of god, acts of a public enemy, acts of superior governmental authority or other circumstances for which it is not responsible or which is not its control, provided, however, that this section shall not excuse the Operator from paying the monthly payment obligation under Section Vl.

SECTION XV

CHANGES

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The City may, at any time, by written order make changes within the general scope of this Agreement in the services or work to be performed. If approved by the City they city shall provide the Operator with written notice of the approval of the changes.

SECTION XVI

SEVERABILITY

lf any term of provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

SECTION XVII

ALTERNATE DISPUTE RESOLUTION/NEUTRAL PARTY

A. Any controversy, claim or dispute between the parties arising out of or relating to the provisions of this Agreement or the breach, termination or validity thereof shall, upon written request of either party, immediately be referred jointly for resolution of the controversy by non-binding mediation.

B. The mediation must be concluded within any period mutually agreed upon by the parties but in no event no later than within forty-five (45) days after written notice is given by either party of its intent to proceed to mediation. Unless the parties expressly agree otherwise, each party shall bear its own costs, legal and expert fees incurred in the mediation, and evenly share the costs of the mediator. lf, after proceeding in good faith the parties, with the assistance of a neutral mediator, Oo not resolve the dispute within the forty-five (45) day period, the parties may proceed in accordance with paragraph (C) below.

C. After exhausting the procedures set forth above, either party may initiate litigation to resolve the dispute. The Law of the State of Texas shall control the matter in controversy. Venue is mandatory in Hidalgo County, Texas'

SECTION XVIII

NOTICE

All notices or other communications required under this Agreement may be affected either by personal delivery in writing or by Certified Mail, Return Receipt Requested. Notice shall be deemed to have been given when delivered or mailed to the parties at the respective addresses as set for the below or when mailed to the last address provided by the other party by the addressee.

SAMPLE

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SECTION XIX

ALTERNATIONS AND REPAIRS

A. The Operator acknowledges and agrees that the premises identified in Exhibit "A" of this Agreement is being leased in an "as is" condition and all costs for adapting such premises for the operation of a racetrack shall be borne by the Operator. Operator shall not make any alterations, additions or improvements to the City's property without, in each case, obtaining the written consent of the City. lf any alterations, additions, or improvements is authorized by the City, the Operator agrees that it will make all such alterations, additions, and/or improvements in or to the City's property at its own expense and in compliance with all building codes, ordinances, and governmental regulations pertaining to such work, use, or occupancy. Operator acknowledges and agrees that any alterations, additions or improvements attached to the City's property shall become the property of the City, except as otherwise agreed upon by both parties in writing. Operator acknowledges and agrees that Operator will hold the City harmless and defend the City against all expenses, liens, claims, and damages to either property or person that may arise in connection to any alterations, additions, or improvements made hereunder.

B. Operator acknowledges and agrees that Operator shall be responsible for all maintenance and repairs needed on the premises and/or property in connection with Operator's use of the premises as a racetrack.

SECTIONS XX

SUCCESSORS AND ASSIGNS

City and Operator each bind themselves, their partners, successor’s, executors, administrators, and assigns to the other party of the Agreement in respect to alt covenants of this Agreement. Neither City nor Operator shall assign, sublet, or transfer interest in this Agreement without written consent of the other.

SECTIONS XXI

MISCELLANEOUS

Any changes to this document must be approved by the City and signed by both parties to the agreement.

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EXECUTED, by the parties in triplicate originals on this _____ day of _______, 2026.

CITY OF EDINBURG

BY: _______________________

Myra L. Ayala, City Manager City of Edinburg ATTEST: 415 W. University Dr.

Edinburg, Texas 78539 Phone: (956) 388-8207 BY:____________________ Email:mayala@cityofedibnurg.com Clariece Balderas, City Secretary

APPROVED AS TO FORM:

Benjermin Alonso, Interterm City Attorney

NAME OF COMPNAY

BY: _______________________

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EXHIBIT “A”

REQUEST FOR PROPOSALS (RFP) LEASE OF CITY OF EDINBURG

PROPERTY AND OPERATION OF ITS DRAGSTRIP (RACETRACK) AT

SOUTH TEXAS INTERNATIONAL AIRPORT AT EDINBURG

SAMPLE

LEGEND:

Exhibit "A"

CREATED BY:

TDR

Scale: NTS Sheet 1 of 1

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PROJECT NAME:

Racetrack Lease

REQUESTED BY:

City Manager's Office

DATE:

June 11, 2026

147 AC - South Texas International Airport at Edinburg Racetrack Lease Area

Area NOT INCLUDED in the Lease

SAMPLE