Approved Agreements and Contracts Arena Participation Agreements 03-08-22

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                      Agenda Item Review Form
                                                   us                     _ GO
                         Muskegon City Commission

Commission Meeting Date: March 8, 2022                 Ti.tie: Arena Participation Agreements


Submitted By: Frank Peterson                           Department: City Manager


Brief Summary: Staff is seeking approval of the attached participation agreements.


Detailed Summary. We have been working with the LCC to convert the arena liquor license from a
Civic Center License to a DOC license. This has been a cumbersome process, but was necessary
to properly operate Rad Dad's and Carlisle's in the space. We are in the home stretch. As part of
the change, we were required to covert the existing leases into participation agreements - this is the
appropriate term inology to match the activities at the arena. We are seeking approval.



Amount Requested :                                    Amount Budgeted:


Fund(s) or Account(s):                                Fund(s) or Account(s): N/A


Recommended Motion: Approve the participation agreements for Rad Dad's Tacos and Tequila
and Carlisle's Goods and Leisure.
     Agreement for Management of a Portion of a Licensed Premises
                 Pursuant to Participation Agreement


      THIS AGREEMENT is made and executed as of
between the
                                                              M<Yv~ 3             , 2022


     City of Muskegon
     a Michigan municipal corporation
     933 Terrace St.
     Muskegon,Ml49440
      (hereinafter "City of Muskegon"), and

     Rad Dads', L.L.C.
     a Michigan limited liability company
     470 W. Western Avenue, Muskegon, Michigan 49440
     Spring Lake, Ml 49456
     ("Rad Dads"')

                                        RECITALS

A.      The City of Muskegon owns the Mercy Health Arena located at 470 W. Western
        Avenue , Muskegon, Michigan 49440 ("Arena"). The City of Muskegon is
        responsible for operation, maintenance and improvements for the Arena.

B.      The City of Muskegon has the authority to authorize use of portions of the Arena
        on an exclusive and non-exclusive basis.

C.      The City of Muskegon has applied for a Class C liquor license and related
        permits issued by the Michigan Liquor Control Commission ("MLCC") for
        providing a restaurant, concessions, bar and bar service throughout the Arena
        premises (collectively the "License").

D.      The City of Muskegon proposes entering into a Participation Agreement with Rad
        Dads' pursuant to Rule 436.1401 to permit the limited use of the license, subject
        to and only upon the approval of the MLCC, upon the terms and conditions of this
        Agreement.

E.      In connection with this Agreement, the City of Muskegon is willing to grant to Rad
        Dads', and Rad Dads' desires to receive from the City of Muskegon, the
        exclusive right to use and manage that portion of the Arena to be known as the
        Rad Dads' Area (See attached Exhibit A) for the operation of a certain
        restaurant and bar business commonly known as the "Rad Dads' Tacos and
        Tequila Bar", subject to and in accordance with the terms and conditions of this
        Agreement.
In consideration of the premises and the mutual promises set forth herein, the
parties agree as follows:

1.    RAD DADS' PARTICIPATION AGREEMENT.                      Upon execution of this
      Agreement, the parties agree to act in good faith and to utilize their best efforts to
      make application to the MLCC for a Participation Agreement/Participation Permit
      Application pursuant to Rule 436.1041. Rad Dads' will operate a full-service
      restaurant, bar and bar service within the Rad Dads' Space as hereinafter
      defined. The parties acknowledge that this Agreement is contingent upon and
      shall only become effective upon approval of the MLCC of the Participation
      Agreement/Participation Permit Application.

2.    DESCRIPTION OF RAD DADS' SPACE. Rad Dads' will have the right to use
      and manage the Rad Dads' Space and fixtures as follows:

      a. The exclusive right to use and manage the Rad Dads' Space (depicted on
      the attached Exhibit A) and the Outdoor Service Area, and a non-exclusive right
      of access for Rad Dads' employees, patrons and suppliers to and from the
      Restaurant Space across other portions of the Arena. Subject to City of
      Muskegon approval of architectural plans, Rad Dads' has the right to construct,
      at their sole cost, an outdoor deck above their outdoor patio area.

      b. The limited nonexclusive right to use other areas in the Arena that would not
      interfere with the management and operation of the Arena by the City of
      Muskegon, excluding only the area identified as the "Rad Dads' Space" in the
      Agreement for Management of a Portion of a Licensed Premises Pursuant to
      Participation Agreement between the City of Muskegon and Rad Dads', LLC
      (depicted on Exhibit B).

      c. Notwithstanding the foregoing, during events held at the Arena when it is
      open to the public, the term exclusive use shall be construed to allow patrons to
      enter and leave the Rad Dads' Space and all areas of the Arena licensed by the
      MLCC.

3.    TERM.      This Agreement shall become effective upon execution with the
      contingencies provided for herein. The initial term of this Agreement shall be for
      a period of five (5) years commencing with the approval of the MLCC of the
      Participation Agreement/Participation Permit Application with a term extension
      equal to the time from such approval to the date a certificate of occupancy is
      issued by the City of Muskegon, a license is issued by the Muskegon County
      Department of Health or the MLCC has approved the licensed space identified
      on Exhibit A, whichever date is latest. If Rad Dads' is forced to close for more
      than ten (10) days, the City of Muskegon will reimburse or credit Rad Dads'
      $1,500 per day, for every day of such closer. The monthly Use Payment shall
      commence on the first day of the month following such approval. In addition, Rad
      Dads' shall have three (3) additional five (5) year options. In the absence of any


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     other provision herein, Rad Dads' shall be provided written notice of any default
     and afforded not less than sixty (60) days to cure the default. Provided that Rad
     Dads' is not in material default of this Agreement at the time of expiration of the
     initial term or any option term, Rad Dads' shall provide the City of Muskegon with
     written notice of its intent to renew this Agreement in writing no later than sixty
     (60) days prior to the expiration of the initial term and any renewal term provided,
     however, that said sixty (60) days shall not begin to toll until sixty (60) days after
     the City of Muskegon has provided Rad Dads' with written notice of the expiration
     of the initial term or any renewal term.

4.   CONSTRUCTION AND IMPROVEMENTS: USAGE. The City of Muskegon has
     completed significant investments to create existing restaurant space that Rad
     Dads' will occupy. Rad Dads' agrees to accept this space in "as is" condition. In
     exchange for accepting the Rad Dads' space, Rad Dads' shall imediately pay
     $50,000 to the City of Muskegon. Rad Dads' further agrees to pay the City of
     Muskegon an additional-$4,940.53 on the 15th of each calander month, beginning
     January 15, 2022, and continuing through December 15, 2031. Rad Dads' has
     the right to pay down the principal at any point during the term of this agreement
     in payments of at least $10,000. The debt shall be amortizated as follows:

           Date                Interest         Principal     Balance

           Jan,2022            $1,627           $3,314        $484,663

           Feb,2022            $1,616           $3,325        $481,338

            Mar, 2022          $1,604           $3,336        $478,002

           Apr, 2022           $1,593           $3,347        $474,655

            May, 2022          $1,582           $3,358        $471,296

            Jun,2022            $1,571          $3,370        $467,927

            Jul, 2022          $1,560           $3,381        $464,546

            Aug, 2022          $1,548           $3,392        $461,154

            Sep,2022            $1,537          $3,403        $457,751

            Oct, 2022           $1,526          $3,415        $454,336

            Nov, 2022           $1,514          $3,426        $450,910

            Dec, 2022           $1,503          $3,437        $447,472

            2022                $18,782         $40,505       $447,472

            Jan,2023            $1,492          $3,449        $444,024

            Feb,2023            $1,480          $3,460        $440,563

            Mar, 2023           $1,469          $3,472        $437,091

                                            3
Date        Interest       Principal   Balance

Apr, 2023   $1,457         $3,484      $433,608

May, 2023   $1,445         $3,495      $430,112

Jun,2023    $1,434         $3,507      $426,606
Jul, 2023   $1,422         $3,519      $423,087

Aug,2023    $1,410         $3,530      $419,557
Sep,2023    $1,399         $3,542      $416,015

Oct, 2023   $1,387         $3,554      $412,461

Nov, 2023   $1,375         $3,566      $408,895

Dec, 2023   $1,363         $3,578      $405,318
2023        $17,132        $42,155     $405,318

Jan,2024    $1,351         $3,589      $401,728
Feb,2024    $1,339         $3,601      $398,127

Mar, 2024   $1,327         $3,613 ·    $394,513

Apr, 2024   $1,315         $3,625      $390,888

May, 2024   $1,303         $3,638      $387,250

Jun,2024    $1,291         $3,650      $383,601

Jul, 2024   $1,279         $3,662      $379,939

Aug,2024    $1,266         $3,674      $376,265

Sep,2024    $1,254         $3,686      $372,578

Oct, 2024   $1,242         $3,699      $368,880

Nov, 2024   $1,230         $3,711      $365,169

Dec, 2024   $1,217         $3,723      $361,446

2024        $15,414        $43,872     $361,446

Jan,2025    $1,205         $3,736      $357,710

Feb,2025    $1,192         $3,748      $353,962

Mar, 2025   $1,180         $3,761      $350,201

Apr, 2025   $1,167         $3,773      $346,428

May, 2025   $1,155         $3,786      $342,642



                       4
Date        Interest       Principal   Balance

Jun,2025    $1,142         $3,798      $338,844

Jul, 2025   $1,129         $3,811      $335,033
Aug,2025    $1,117         $3,824      $331,209

Sep,2025    $1,104         $3,837      $327,372

Oct, 2025   $1,091         $3,849      $323,523

Nov, 2025   $1,078         $3,862      $319,661

Dec, 2025   $1,066         $3,875      $315,786
2025        $13,627        $45,660     $315,786

Jan,2026    $1,053         $3,888      $311,898

Feb,2026    $1,040         $3,901      $307,997

Mar, 2026   $1,027         $3,914      $304,083

Apr, 2026   $1,014         $3,927      $300,156

May, 2026   $1,001         $3,940      $296,216

Jun,2026    $987           $3,953      $292,263

Jul, 2026   $974           $3,966      $288,297

Aug,2026    $961           $3,980      $284,317

Sep,2026    $948           $3,993      $280,325

Oct, 2026   $934           $4,006      $276,319

Nov, 2026   $921           $4,019      $272,299

Dec, 2026   $908           $4,033      $268,266

2026        $11,767        $47,520     $268,266

Jan,2027    $894           $4,046      $264,220

Feb,2027    $881           $4,060      $260,160

Mar, 2027   $867           $4,073      $256,087

Apr, 2027   $854           $4,087      $252,000
May, 2027   $840           $4,101      $247,899

Jun, 2027   $826           $4,114      $243,785

Jul, 2027   $813           $4,128      $239,657



                       5
Date        Interest       Principal   Balance

Aug,2027    $799           $4,142      $235,516

Sep,2027    $785           $4,155      $231,360

Oct, 2027   $771           $4,169      $227,191

Nov,2027    $757           $4,183      $223,007

Dec, 2027   $743           $4,197      $218,810

2027        $9,830         $49,456     $218,810

Jan,2028    $729           $4,211      $214,599
Feb,2028    $715           $4,225      $210,374

Mar, 2028   $701           $4,239      $206,135

Apr, 2028   $687           $4,253      $201,881

May, 2028   $673           $4,268      $197,614

Jun,2028    $659           $4,282      $193,332

Jul, 2028   $644           $4,296      $189,036

Aug,2028    $630           $4,310      $184,725

Sep,2028    $616           $4,325      $180,401

Oct, 2028   $601           $4,339      $176,061

Nov, 2028   $587           $4,354      $171,708

Dec, 2028   $572           $4,368      $167,340

2028        $7,816         $51,471     $167,340

Jan,2029    $558           $4,383      $162,957

Feb,2029    $543           $4,397      $158,559

Mar, 2029   $529           $4,412      $154,147

Apr, 2029   $514           $4,427      $149,721

May, 2029   $499           $4,441      $145,279

Jun,2029    $484           $4,456      $140,823

Jul, 2029   $469           $4,471      $136,352

Aug,2029    $455           $4,486      $131,866

Sep,2029    $440           $4,501      $127,365



                       6
Date        Interest       Principal   Balance

Oct, 2029   $425           $4,516      $122,849

Nov,2029    $409           $4,531      $118,318

Dec, 2029   $394           $4,546      $113)72

2029        $5,719         $53,568     $113,772

Jan,2030    $379           $4,561      $109,210

Feb,2030    $364           $4,576      $104,634

Mar, 2030   $349           $4,592      $100,042

Apr, 2030   $333           $4,607      $95,435

May, 2030   $318           $4,622      $90,813

Jun,2030    $303           $4,638      $86,175

Jul, 2030   $287           $4,653      $81,522

Aug,2030    $272           $4,669      $76,853

Sep, 2030   $256           $4,684      $72,169

Oct, 2030   $241           $4JOO       $67,469

Nov, 2030   $225           $4)16       $62,753

Dec, 2030   $209           $4)31       $58,022

2030        $3,536         $55,750     $58,022

Jan,2031    $193           $4)47       $53,274

Feb, 2031   $178           $4,763      $48,511

Mar, 2031   $162           $4)79       $43,733

Apr, 2031   $146           $4,795      $38,938

May, 2031   $130           $4,811      $34,127

Jun, 2031   $114           $4,827      $29,300

Jul, 2031   $98            $4,843      $24,458

Aug,2031    $82            $4,859      $19,599

Sep, 2031   $65            $4,875      $14,723

Oct, 2031   $49            $4,891      $9,832

Nov,2031    $33            $4,908      $4,924



                       7
           Date               Interest      Principal        Balance

           Dec, 2031          $16           $4,924           $0
           2031               $1,265        $58,022          $0




     Subject to further MLCC approval, Rad Dads' may increase the dimensions of
     the outdoor service area to further extend the space along the exterior of the Rad
     Dads' space. Rad Dads' would be responsible for any costs associated with
     such expansion, and such expansion would have no impact of the calculation of
     monthly use payment.

     Rad Dads' shall use and manage the Rad Dads' Space for purposes of operating
     a sports bar and restaurant operation, including food and beverage service
     preparation ("Restaurant").

5.   RAD DADS' COMPENSATION. In consideration for the management and
     operation of the Restaurant and the Rad Dads' Space, Rad Dads' shall retain
     100% of the net profits generated from the operation of the Restaurant, including
     the sale of alcoholic beverages under the License, non-alcoholic beverages,
     food, merchandise and cover charges and other goods and services which would
     not constitute a violation of MLCC rules. The term "net profits" as used in this
     Agreement shall mean all revenue derived from the operation of the Restaurant
     less all expenses related to the operation of the Restaurant. During the term of
     this Agreement, at the request of the City of Muskegon, Rad Dads' shall deliver
     to the City of Muskegon an income statement certified by an officer or manager
     of Rad Dads' setting forth its net profits. In the event the City of Muskegon, in its
     sole discretion, needs additional information to clarify information, Rad Dads' will
     grant to the City of Muskegon the right to have access to all books, accounts,
      records and reports, that may be kept by Rad Dads' showing all financial
      information related to the operation of the Restaurant. If a review discloses any
     discrepancy in the net profits, the parties shall mutually agree on a Certified
      Public Accountant to review the financial statements and records of Rad Dads'
      and determine the net profits. Such determination shall be binding on the parties.
      City agrees that any financial information provided will be directed to the City
     Attorney and not shared with any other City employees unless as absolutely
      necessary.

     In further consideration for the management and operation of the Restaurant and
     the Rad Dads' Space, Rad Dads' shall have the ability to host special events in
     the the Arena. The events shall follow the City of Muskegon's established policy
     for hosting a third-party event, with the exception that Rad Dads' will not pay a
     facility rental fee and their event attendees will not pay a ticketing fee unless the
     event charges attendees in excess of $15 per attendee. Rad Dads' will pay for
     all labor and expenses necessary for hosting any third-party event. Rad Dads'

                                           8
     ability to host a third-party event shall be limited to availability of the Arena.
     Availability shall be at the discretion of the City of Muskegon. Rad Dads' is
     limited to hosting three one-day third-party events in a calander year.

6.   CALCULATION OF MONTHLY USE PAYMENT; CREDIT. In consideration of
     this Agreement, Rad Dads' shall pay monthly Use Payment to the City of
     Muskegon in an amount equal to 4,750; provided, however, that beginning with
     the sixth year, the base use payment will increase to $5,000, and beginning with
     the 11 th year, the base use payment will increase to $5,250, and and beginning
     with the 16th year, the base use payment will increase to $5,500.

     The City of Muskegon agrees to host a minimum of 40 game days in a calander
     year. A single regular season or post-season professional sports game shall
     constitute a game day. Additionally, an amateur sports tournament consisting of
     a minimum of six (6) amateur games in a day shall consititue a game day. In the
     event the Arena hosts less than 30 game days in a calander year, Rad Dads'
     shall have the option to cancel this Agreement with 30 days' notice to the City of
     Muskegon.

     The City of Muskegon may host events that require the temporary closure of Rad
     Dads'. In the event that Arena events require the closure of Rad Dads' for non-
     ticketed events in excess of 20 hours in a calander year, Rad Dads' shall receive
     a Use Payment credit of $250 for each hour of closure in excess of 20 hours. In
     the event that Arena requires the closure of Rad Dad's for ticketed events such
     as concerts and other shows, Rad Dad's may request that the City reimburse
     Rad Dads' with $1.00 per ticket from the ticket service fees. City will add the
     $1.00 per ticket fee to any ticket sold for such event.

7.   ADJUSTMENT OF MONTHLY USE PAYMENT.                  The monthly Use Payment
     shall be adjusted upon the following events and upon the following terms:

            i. Professional Hockey, Football, and Soccer Games. Rad Dads' will work
     with the Arena's professional hockey, football, and soccer tenants, at its sole
     discretion, to compensate the tenants for partnerships during their ticketed
     events. In the event that Rad Dads' is unable to reach partnership agreement
     with one or more of the these tenants, the additional monthly use payments \Viii
     be implemented as follows: on days when professional hockey,football, or
     soccer games take place in the Arena, the Use Payment shall be increased and
     adjusted in the amount of $500 per Hockey event day and $400 per Football and
     Soccer event day. Rad Dads will purchase 25 sets of season tickets from the
     Muskegon Lumberjacks per season. Rad Dads' will pay the West Michigan
     lronmen $500 per home game in the form of a gift card in exchange for hosting
     the official after party at Rad Dad's on game days. Rad Dads' will purchase$200
     worth of game tickets from the Muskegon Risers per home game.




                                          9
      ii. Suspension of Liquor License. In the event that the License issued by the
      MLCC shall be suspended for reasons other than rule violations by Rad Dad's or
      its patrons, Use Payments shall be suspended pro rata during such suspension
      term.

8.    CONTRIBUTION TO OVERHEAD AND MAINTENANCE. Rad Dads' shall also
      pay to the City of Muskegon a contribution for overhead common utilities and
      maintenance an amount equal to $1,500.00 per month. This contribution shall be
      paid in the form of a Use Credit identified in Paragraph 6 herein until such time
      as the Use Credit is fully amortized.

9.    UTILITY COSTS. As part of the Contribution to Overhead and Maintenance
      identified in Section 8 of this agreement, the City of Muskegon shall pay all
      charges for metered gas, electricity, water, power, cable television, and internet
      service rendered or supplied upon or in connection with the Rad Dads' Space.
      Rad Dads' shall pay all charges for telephone service used in connection with the
      Rad Dads' Space.

10.   ASSIGNMENT. Rad Dads' shall not assign this Agreement without prior written
      consent of the City of Muskegon and the MLCC. Such approval and consent
      shall not unreasonably be withheld by the City of Muskegon and shall be subject
      to the rules and regulations of the MLCC.

11.   OBLIGATIONS OF THE CITY OF MUSKEGON. To the extent required by
      MLCC rules, the City of Muskegon shall purchase all alcoholic and food inventory
      to be used by the Restaurant. The City of Muskegon shall furnish "janitorial
      services" for the exterior of the building and in lobby areas and restrooms used
      by the public, exclusive of those areas used and managed by Rad Dads'. The
      City of Muskegon agrees to maintain in satisfactory working order, all public ways
      and structures of the Arena, including plate glass, roof, and outer walls and
      heating, electrical and plumbing supply sites, air conditioning and hot water
      supply units. The City of Muskegon agrees to allow use of its dumpsters by Rad
      Dads', and the cost of such service shall be included in Section 8 of this
      Agreement. The City of Muskegon agrees to be responsible for any structural
      repairs, replacements or changes in the Arena which affect the Rad Dads'
      Space.

12.   OBLIGATIONS OF RAD DADS'. Rad Dads' shall reimburse the City of
      Muskegon for all alcoholic and food inventory purchased by the City of Muskegon
      for the Restaurant within 30 days of receipt of an invoice from the City of
      Muskegon. Rad Dads' agrees that it will pay all expenses in connection with the
      use and management of the Rad Dads' Space and fixtures, including, but not
      limited to, all rights and privileges granted, including all metered utility services
      (e.g. electrical, water and sewer service) and all taxes, permits, fees, license fees
      and assessments lawfully levied or assessed upon Rad Dads' personal property
      or upon its use of possession of the Rad Dads' Space and fixtures. Except for


                                            10
      the License, Rad Dads' agrees to secure all permits and licenses required
      related to its use of the Rad Dads' Space.

      Rad Dads' agrees that it will at all times maintain the Rad Dads' Space and
      fixtures in a neat, clean, safe, sanitary and orderly condition, and shall provide
      janitorial services with respect thereto. Rad Dads' shall provide for the sanitary
      handling and disposal of trash and other refuse from its operation in a manner
      satisfactory to the City of Muskegon.

      Rad Dads' will make no structural changes or additions to the Rad Dads' Space
      without first obtaining written approval from the City of Muskegon.

      Rad Dads' agrees to provide and pay for any and all decorations to the Rad
      Dads' Space. Rad Dads' shall provide the following services from the Rad Dads'
      Space at all times during the term of this Agreement at its sole cost and expense:

      a.     Rad Dads' shall furnish, at its expense, all service equipment of every sort
      (such as silverware, linen, glassware, crockery, utensils, pots and pans, and
      additional equipment), which may be required for use in Rad Dads' operation and
      which is not already presently located in the Rad Dads' Space.

      b.     Rad Dads' shall undertake to comply with all MLCC rules.

      c.     Rad Dads' shall cooperate with the City of Muskegon in securing all
      permits and licenses required by any public agency, including the License issued
      by the MLCC in connection with the operation of the Arena as a sports and
      entertainment venue.

      d.     Rad Dads' shall carry workers compensation insurance in the amounts
      required by state law for all employees hired by Rad Dads' to work in the Rad
      Dads' Space.
13.   ORDINANCES AND STATUTES. Rad Dads' shall comply with all statutes,
      ordinances and requirements of all municipal, state and federal authorities now in
      force or which may be in force, pertaining to the premises, occasioned by or
      affecting the use there of by Rad Dads'. The commencement or pendency of
      any state or federal court abatement proceeding affecting the use of the Rad
      Dads' Space shall, at the option of the City of Muskegon, be deemed a breach
      hereof. The City of Muskegon represents and warrants that the Arena shall be in
      compliance with the Americans with Disabilities Act, and its regulation, as of the
      commencement of this Agreement.
14.   MAINTENANCE, REPAIRS, ALTERATIONS. Rad Dads' shall, at its expense
      and at all times, maintain the Rad Dads' Space in good and safe condition,
      including plate glass, electrical wiring, plumbing and heating installations. Rad
      Dads' shall also maintain in good condition such portions adjacent to the Arena
      within the Rad Dads' Space, such as sidewalks, driveways, lawns and shrubbery.

                                           11
15.   ENTRY AND INSPECTION. Rad Dads' shall permit the City of Muskegon or the
      City of Muskegon's agents to enter upon the Rad Dads' Space at reasonable
      times for the purpose of performing maintenance and making repairs and
      replacement in any case where the City of Muskegon is obligated, and in any
      other case where the City of Muskegon determined that it was necessary to do
      so in order to preserve the structural safety of the Rad Dads' Space to correct
      any condition likely to cause injuries or damages to persons or property.
16.   DAMAGE OR DESTRUCTION OF PREMISES. If by reason of any cause the
      Rad Dads' Space is damaged to such an extent that the Rad Dads' Space is
      unusable in whole or in substantial part, then:

      a.     If the repairs and rebuilding necessary to restore the Rad Dads' Space to
      its condition prior to the occurrence or the damage can be in the reasonable
      judgment of Rad Dads' be completed within ninety (90) days from the date on
      which the damage occurred, Rad Dads' shall so notify the City of Muskegon in
      writing and shall proceed promptly with such repairs and rebuilding, and in such
      event the use of said premises shall be abated for the period from the date of the
      occurrence of such damage to the date upon which such repairs and rebuilding
      are completed; and

      b.    If such repairs and rebuilding cannot, in the reasonable judgment of Rad
      Dads', be completed within ninety (90) days, the City of Muskegon and Rad
      Dads' can mutually agree either to:

             •      Have Rad Dads' proceed promptly with said repairs and rebuilding,
                    in which event the said use shall be abated; or

             •      To terminate this Agreement.


17.   RISK OF LOSS. During the term of this agreement, and any extension or
      renewal thereof, the risk of loss with respect to all risks insurable under a fire and
      extended coverage insurance policy meeting the requirements of the laws of the
      State of Michigan, together with the risk of loss with respect to all uninsurable
      losses to the premises which are subject to the control or prevention by Rad
      Dads', shall rest upon Rad Dads'.

18.   SUBROGATION. Rad Dads', its officers, agents or employees shall not be liable
      for damage to the Rad Dads' Space or for interruption of Use Fees resulting from
      any of the perils covered by fire and extended coverage insurance, or which
      would be covered if such insurance were in force, and the City of Muskegon
      agrees not to sue for such damage and that every applicable policy of insurance
      will contain or be endorsed with the standard waiver of subrogation clause. The
      City of Muskegon shall not be liable for damage to the property or business of
      Rad Dads' in or on the Rad Dads' Space resulting from any of the perils covered


                                             12
                                                       1
      if such insurance were in force) and Rad Dads agrees not to sue for such
      damage and that every applicable policy of insurance will contain or be endorsed
      with the standard waiver of subrogation clause.

19.   INSURANCE.         Rad Dads>, at its expense shall maintain general liability
                                                           1

      insurance insuring the City of Muskegon and Rad Dads' with minimum coverage
      as follows: $1,000,000.00. Rad Dads' shall provide the City of Muskegon with a
      Certificate of Insurance showing the City of Muskegon as additional insured. The
      Certificate shall provide for a thirty (30) day written notice to the City of
      Muskegon in the event of cancellation or material change of coverage. To the
      maximum extent permitted by insurance policies, which may be owned by the
      City of Muskegon or Rad Dads' Rad Dads' and the City of Muskegon for the
                                        1                                         1

      benefit of each other, waive any and all rights of subrogation, which might
      otherwise exist. The City of Muskegon agrees to notify Rad Dads' in writing as
      soon as practicable of any claim, demand or action arising out of an occurrence
                                                   1
      covered, and to cooperate with Rad Dads in the investigation and defense of
                              1
      such claim. Rad Dads and the City of Muskegon agree that each insurance
      policy shall provide for a minimum of thirty (30) days written notice of cancellation
      to the City of Muskegon. Rad Dads 1 shall also be responsible for a portion of the
       cost of the liquor liability insurance purchased by the City of Muskegon for the
      Arena. Rad Dads' cost is estimated at $1,500 annually, and is incorporated as a
       cost to overhead and maintenance in Section 8 of this agreement.
20.   SIGNS. The City of Muskegon and Rad Dads' shall cooperate to secure
      maximum signage area for Rad Dads' which shall be reasonable commensurate
      with its exclusive space. All signage shall be in conformance with applicable
                                        1
      laws and statutes and Rad Dads shall not construct the signage without the prior
      written consent of the City of Muskegon which consent shall not unreasonably be
      withheld or delayed. Rad Dads' agrees that no signage will be added to the Rad
      Dads' space that specifically advertises any third-party to the non-exclusive
      areas of the Arena as identified in Section 2(b) of this Agreement.
21.   ABANDONMENT OF RAD DADS' SPACE. If Rad Dads' shall abandon or
      vacate the Rad Dads' Space, or be dispossessed by process of law, or
      otherwise, the City of Muskegon shall have the right to declare this Agreement is
      terminated. In such event, any personal property belonging to Rad Dads' left
      within the Rad Dads' Space shall be deemed to be abandoned, and the City of
      Muskegon shall be permitted to dispose of such personal property as it deems
      appropriate.
22.   INSOLVENCY. In the event that a receiver shall be appointed to take over the
      Rad Dads' business, and such receivership is not dismissed within sixty (60)
      days or in the event that the Rad Dads' shall make a general assignment for the
      benefit of creditors, or Rad Dads' shall take or suffer any action under any
      insolvency or bankruptcy act, the same shall constitute breach of this Agreement
      by Rad Dads'.



                                            13
23.   TERMINATION OF AGREEMENT. Subject to the provisions in Paragraph 25,
      The City of Muskegon, at its option, may declare this Agreement terminated in its
      entirety upon the happening of any one or more of the following events:

      a.     If the any expenses, fees, charges, and/or other money payments for
      which Rad Dads' is financially responsible, shall be unpaid thirty (30) days from
      the date that they become due;

      b.      If Rad Dads' abandons the Rad Dads' Space for a period of thirty (30)
      days at any one time, except when such abandonment and cessation is due to
      fire, earthquake, governmental action, default of the City of Muskegon, or other
      cause beyond it control;

      c.     If Rad Dads' shall use or permit the use of the Rad Dads' Space at any
      time for any purpose for which the use was not authorized by this Agreement or
      by a subsequent written agreement between the parties after written notice and
      opportunity to cure; and

      d.      If Rad Dads' shall use or permit the use of the Rad Dads' Space in
      violation of any law, rule or regulation to which Rad Dads' had agreed in this
      Agreement to conform after written notice and opportunity to cure.

24.   REMEDIES OF OWNER ON DEFAULT. In the event of any material breach of
      this Agreement by Rad Dads', the City of Muskegon may, at its option, terminate
      this Agreement and recover from Rad Dads': (a) the worth at the time of award of
      the unpaid monthly Use Payment which would have been earned at the time of
      termination; (b) the worth at the time of award of the amount by which the unpaid
      monthly Use Payment which would have been earned after termination until the
      time of the award exceeds the amount of such loss of use that the Rad Dads'
      proves could have been reasonably avoided; (c) the worth at the time of award of
      the amount by which the unpaid monthly Use Payment for the balance of the
      term after the time of award exceeds the amount of such loss of use that Rad
      Dads' proves could be reasonably avoided.

      The City of Muskegon may, in the alternative, continue this Agreement in effect,
      as long as the City of Muskegon does not terminate Rad Dads' right to use and
      management, and the City of Muskegon may enforce all his rights and remedies
      under this Agreement, including the right to recover the monthly Use Payment
      under this Agreement, if said breach continues, the City of Muskegon may at any
      time thereafter, elect to terminate this Agreement. Nothing contained herein shall
      be deemed to limit any other rights or remedies which the City of Muskegon may
      have.

25.   RIGHT TO CURE. In addition to the rights herein before set forth, Rad Dads'
      shall have the right to contest any allegation of material breach in the appropriate
      court in Muskegon County, Michigan. In the event of an adjudication of a


                                           14
      material default of this agreement by such court, the relief shall provide that Rad
      Dads' shall have 30 days from the date of such adjudication to cure the default.


26.   RESERVATION OF RIGHTS BY THE CITY OF MUSKEGON.

      a.     The City of Muskegon reserves the right to further develop or improve the
      Arena as it sees fits, regardless of the desires or view of Rad Dads', so long as
      the improvements do not encroach into the existing footprint or operations of Rad
      Dads'.

      b.     The City of Muskegon reserves the right to adopt, from time to time,
      reasonable rules and regulations for the operation of the Arena which are not
      inconsistent with the provisions of this Agreement. Rad Dads' and its agents,
      employees, invitees, and licenses shall comply with all those rules and
      regulations.

27.   SURRENDER AND HOLDING OVER. Rad Dads' agrees that at the expiration
      or termination of this Agreement, it will quit and surrender the Rad Dads' Space
      in good state and condition, reasonable wear and tear excepted, and also
      excepting damage arising from acts, events or conditions beyond the control of
      Rad Dads', and that Rad Dads' shall forthwith remove all equipment trade
      fixtures and personal property belonging to it. Rad Dads' shall give the City of
      Muskegon the first right of refusal to purchase any equipment or trade fixtures
      purchased by Rad Dads'. Rad Dads' further agrees that all structures and
      improvements on the Rad Dads' Space and all fixtures in Exhibit B are the
      property of the City of Muskegon, shall remain upon the Rad Dads' Space, and
      shall be in good usable order and condition, with allowance for reasonable wear
      and tear and damage by the elements, and also excepting damage arising from
      acts, events and conditions beyond the control of Rad Dads'. The City of
      Muskegon shall have the right upon such expiration or termination to enter upon
      and take possession of such property.

28.   GENERAL PROVISIONS.

      a.     Governing Law. This Agreement is executed in accordance with, shall
      be governed by, and construed and interpreted in accordance with the laws of
      the State of Michigan.

      b.     Entire Agreement. This Agreement shall constitute the entire agreement,
      and shall supersede any other agreements, written or oral, dated prior to the
      execution of this Agreement, and any contemporaneous or prior negotiations and
      representations that may have been made or entered into, by and between the
      parties with respect to the subject matter of this Agreement and shall not be
      modified or amended except in a subsequent writing signed by the party against
      whom enforcement is sought.


                                           15
c.     Binding Effect. This Agreement shall be binding upon, and inure to the
benefit of and be enforceable by, the parties and their respective legal
representatives, permitted successors and assigns.

d.     Counterparts. This Agreement may be executed in counterparts, and
each set of duly delivered identical counterparts which includes all signatories
shall be deemed to be one original document.

e.      Full Execution. This Agreement requires the signature of both parties.
Until fully executed, on a single copy or in counterparts, this Agreement is of no
binding force or effect and if not fully executed, this Agreement is void.

f.     Non-Waiver. No waiver by any party of any provision of this Agreement
shall constitute a waiver by such party of such provision on any other occasion or
a waiver by such party of any other provision of this Agreement.

g.      Severability. Should any one or more of the provisions of this Agreement
be determined to be invalid, unlawful, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions of this Agreement
shall not in any way be impaired or affected.

h.     Assignment or Delegation. Except as otherwise specifically set forth in
this Agreement, neither party shall assign all or any portion of its rights and
obligations contained in this Agreement without the express prior written approval
of the other party, which approval may not be unreasonably withheld.

i.     Venue. The parties agree that for purposes of any dispute in connection
with this agreement, the Muskegon County Circuit Court shall have exclusive
personal and subject matter jurisdiction and venue.

j.     Terms. Nouns and pronouns will be deemed to refer to the masculine,
feminine, neuter, singular and plural, as the identity of the person or persons, firm
or corporation may in the context require.

k.     Fax Signatures. The parties have agreed that fax copies of the signed
Agreement shall constitute a valid, enforceable agreement. Each party will mail
originals to the respective party upon their execution of this Agreement.

I.     Notices. Any notice which either party may or is required to give, shall be
given by mailing the same, postage prepaid, to Rad Dads' at the address shown
above, or the City of Muskegon at the address shown above, or at other such
places as may be designated by the parties from time to time. Notice shall be
sent by regular first-class mail or by registered or certified mail, return receipt
requested.



                                      16
THE CITY OF ~


By:
Name:
          r~
         /~         Pt11'J bf)
Title:     C.l1 7 Mc-v-c..~
Date:       Mw r \A       J      , 2022
           '



RAD DADS' TACOS AND TEQUILA, LLC


By:    ~~ '---= ~
Name: Matt Gongalski
                        -

Title: Managing Member
Date: ,-,,,,t~   :314' , 2022




                                      17
                                                                                                                     Exhibit A

                                                                                                           Rad Dads' Space

'1'\ BLACK ANODIZEDAUJMINUM AND GLASS
~ ENTRY DOOR MEDIUM STILES, 3"-0-WX T--1."H
                                                              ©-   TASTING ROOM-LIGHT GRIND EXISTING Fl.DOR, EXPOSED
                                                                   CONC. CEIUNG, CORRUGATED METAL WALL PANEL SOUTH                ©      BLACKENED STEEL EXPANDED MESH IN STEEL FRAME
                                                                                                                                         MOUNTED ON OECK48" HIGH 90- LONG
                                                                                                                                                                                                    ~ FRONT BAR- BLACK STAINED CONCRETE TOP,
                                                                                                                                                                                                    ~ CEMENT BO FRONT WITH STEEL FOOT REST/BASE
©   DARK GREY COMPOSITE DECKING ITREXl ON NON-COMB
                                                              ®    WALL
                                                                                                                                  r,;'\
                                                                                                                                  \!;/ BLAC~ STEEL HANDRAIL Z-X 2" SQUARE TUBING ON
                                                                                                                                                                                                           ANO LEO ACCENT LIGHTING AND 18" HIGH GLASS
                                                                                                                                                                                                           SNEEZE GUARD
    FRAMING.10"HIGHABOVECONCOURSEWITH BLACKENED                    CUSTOMSTEELAND GLASS DOORS IN 9"--1."HX 16"-0"L                      POSTS !i-0 O.C. MOUNTED TO DECK                             '131ss RlOD PREP COUNTER, 3?(10' PASS THRU
©
    STEEL EDGE PLATEANO DECORATIVE LEO LIGHTING BELOW.
                                                              ©
                                                                   OPENING.
                                                                                                                                  ®     TACO ASSEMBLY HALL- CLEAN AND POLISH EXlSTING               ~ OPENING IN BACK WALL
    BLACKENED STEEL EXPANDED MESH IN STEEL FRAME.                  OPTION A-FOLDING "HANGAR" STYLE DOOR WITH GLASS                      TERRAZZO Fl.OCR. CORRUGATED METAL WALL PANEL                '14\SS BACK COUNTER, EXPAtroED METAL MESH
    FROM DECK TO UNDERSIDEOFROOF-10--trHX IZ--0" LONG.             OPTION B-GLASSANO AUJMINUM OH SECTIONAL DOOR.                        SOUTH AND EAST WALL, "POLAROID" LEO CHANDELIER              'I::;/ LIQOUR DISPLAY SHELVING WITH ACCENT LIGH'IS
    GLASS VESTIBULE BEHIND AT ENTRY.
                                                              @
                                                                   9"--1."H X 16"-II" L
                                                                   EXISTING BRICK VENEER WALL CLEAN AND POINT AS
                                                                                                                                  ®     FRONT BAR· BLACKSTAINED CONCRETE TOP, CEMENT                @      EXHAUST HOOD AND FAN COORDINATE WITH
                                                                                                                                        =T~:~~~EEL FOOT REST/BASEAND LED                                   RlOD SERVICE EQUIPMENT
                                                                   NECESSARY
                                                                                                                                                                                                    r,;:,, OFFICE- PAINTED GYP WALLS EXlSTING CEILNG,

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                                                                                                                                                                                                    \!::, GLASS DOOR AND SIDE LIGHT

                                                                                                                                       <>;}::.>>                                                    @      WALK-IN COOLER/FREEZER



                                 ·-                   . '                                - <VI~ .                                           '>>,.:~ ·-:' >.
                                                                                                                                                                                                    f.iill TOILET ROOMS - EXISTING CONC FLOOR LIGHT
                                                                                                                                                                                                    \!::, POLISH, PORCELAIN TILE AT WET WALLS,
                                                                                                                                                                                                           PROVIDE EXAUST

                                 i
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                                                                                                                                              EXlSTIN~- • .
                                                                                                                                                                                                    @ STEEL AND EXPANDED METAL GATE
                                                                                                                                                                                                    ~ "t.JVEWAU: CILANTRO GARDEN ON EXISTING

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                                                                                            s°                            /4·•                                                                      ~ WALL

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                                                                                                                           18
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     Agreement for Management of a Portion of a Licensed Premises
                 Pursuant to Participating Agreement


      THIS AGREEMENT is made and executed as of
between the
                                                            _Jl/\,::,,_y
                                                                    __)
                                                                           _6 \ ~   2022


     City of Muskegon
     a Michigan municipal corporation
     933 Terrace St.
     Muskegon, Ml49440
      (hereinafter "City of Muskegon"), and

     Carlisle's Goods & Leisure, LLC
     a Michigan limited liability company
     14716 Leonard Rd.
     Spring Lake, Ml 49456
     (hereinafter "Carlisle")

                                        RECITALS

A.      The City of Muskegon owns the Mercy Health Arena located at 470 W. Western
        Avenue, Muskegon, Michigan 49440 ("Arena"). The City of Muskegon is
        responsible for operation, maintenance and improvements for the Arena.

B.      The City of Muskegon has the authority to authorize use of portions of the Arena
        on an exclusive and non-exclusive basis.

C.      The City of Muskegon has applied for a Class C liquor license and related
        permits issued by the Michigan Liquor Control Commission ("MLCC") for
        providing a restaurant, concessions, bar and bar service throughout the Arena
        (collectively the "License").

D.      The City of Muskegon proposes entering into a Participating Agreement with
        Carlisle pursuant to Rule 436.1401 to permit the limited use of the license,
        subject to and only upon the approval of the MLCC, upon the terms and
        conditions of this Agreement.

E.      In connection with this Agreement, the City of Muskegon is willing to grant to
        Carlisle, and Carlisle desires to receive from the City of Muskegon, the exclusive
        right to use and manage that portion of the Arena to be known as the Carlisle
        Area (See attached Exhibit A) for the operation of a certain restaurant and bar
        business commonly known as the "Carlisle's Goods & Leisure", subject to and in
        accordance with the terms and conditions of this Agreement.
In consideration of the premises and the mutual promises set forth herein, the
parties agree as follows:

1.    CARLISLE PARTICIPATING AGREEMENT. Upon execution of this Agreement,
      the parties agree to act in good faith and to utilize their best efforts to make
      application to the MLCC for a Participating Agreement/Participation Permit
      Application pursuant to Rule 436.1041. Carlisle will operate a full-service
      restaurant, bar and bar service within the Carlisle Space as hereinafter defined.
      The parties acknowledge that this Agreement is contingent upon and shall only
      become effective upon approval of the MLCC of the Participating
      Agreement/Participation Permit Application.

2.    DESCRIPTION OF CARLISLE SPACE. Carlisle will have the right to use and
      manage the Carlisle Space and fixtures as follows:

      a. The exclusive right to use and manage the Carlisle Space (depicted on the
      attached Exhibit A) and the Outdoor Sidewalk Patio, and a non-exclusive right of
      access for Carlisle's employees, patrons and suppliers to and from the
      Restaurant Space across other portions of the Arena.

      b. The limited nonexclusive right to use other areas in the Arena that would not
      interfere with the management and operation of the Arena by the City of
      Muskegon, excluding only the area identified as the "Rad Dad's Space" in the
      Agreement for Management of a Portion of a Licensed Premises Pursuant to
      Participating Agreement between the City of Muskegon and Rad Dad's, LLC
      (depicted on Exhibit B).

      c. Notwithstanding the foregoing, during events held at the Arena when it is
      open to the public, the term exclusive use shall be construed to allow patrons to
      enter and leave the Carlisle Space and all areas of the Arena licensed by the
      MLCC.

3.    TERM.      This Agreement shall become effective upon execution with the
      contingencies provided for herein. The initial term of this Agreement shall be for
      a period of five (5) years commencing with the approval of the MLCC of the
      Participating Agreement/Participation Permit Application with a term extension
      equal to the time from such approval to the date a certificate of occupancy is
      issued by the City of Muskegon, a license is issued by the Muskegon County
      Department of Health or the MLCC has approved the licensed space identified
      on Exhibit A, whichever date is latest. The monthly Use Payment shall
      commence on the first day of the month following such approval. In addition,
      Carlisle shall have six additional five (5) year options. In the absence of any
      other provision herein, Carlisle shall be provided written notice of any default and
      afforded not less than sixty (60) days to cure the default. Provided that Carlisle is
      not in material default of this Agreement at the time of expiration of the initial term
      or any option term, Carlisle shall provide the City of Muskegon with written notice


                                             2
     of its intent to renew this Agreement in writing no later than sixty (60) days prior
     to the expiration of the initial term and any renewal term provided, however, that
     said sixty (60) days shall not begin to toll until sixty (60) days after the City of
     Muskegon has provided Carlisle with written notice of the expiration of the initial
     term or any renewal term.

4.   CONSTRUCTION AND IMPROVEMENTS: USAGE. Upon approval by the
     MLCC of the Participating Agreement, the City of Muskegon, at its sole cost and
     expense, will undertake construction of Carlisle Space improvements
     substantially in accordance with the plans, specifications and costs identified and
     attached hereto as Exhibit B. The City of Muskegon agrees to proceed in good
     faith and in a reasonable manner in order to complete the work and obtain all
     regulatory approvals and signoffs within 60 days of this agreement provided that
     an additional term of 120 days will be allowed for completion. Carlisle will repay
     the City of Muskegon the actual costs of the improvements within 90 days
     following the completion of the construction and issuance approval of the
     License, whichever occurs later. Upon completion of the construction, the City of
     Muskegon shall provide Carlisle with written confirmation of the amounts
     expended by the City of Muskegon under this Section 4. The total Cost of
     Improvements shall not exceed $650,000 unless mutually agreed to between the
     parties and, once repayment is made by Carlisle as set forth above, shall be
     credited against the Use Payments provided for in Paragraph 6.

     Carlisle shall use and manage the Carlisle Space for purposes of operating a
     sports bar and restaurant operation, including food and beverage service
     preparation ("Restaurant").

5.   CARLISLE'S COMPENSATION. In consideration for the management and
     operation of the Restaurant and the Carlisle Space, Carlisle shall retain 100% of
     the net profits generated from the operation of the Restaurant, including the sale
     of alcoholic beverages under the License, non-alcoholic beverages, food,
     merchandise and cover charges and other goods and services which would not
     constitute a violation of MLCC rules. The term "net profits" as used in this
     Agreement shall mean all revenue derived from the operation of the Restaurant
     less all expenses related to the operation of the Restaurant. During the term of
     this Agreement, Carlisle will deliver to the City of Muskegon by the 15th day of the
     end of each month an income statement certified by an officer or manager of
     Carlisle setting forth its net profits. Carlisle grants to the City of Muskegon the
     right at all reasonable times to have access to all books, accounts, records and
     reports, that may be kept by Carlisle showing all financial information related to
     the operation of the Restaurant. If a review discloses any discrepancy in the net
     profits, the parties shall mutually agree on a Certified Public Accountant to review
     the financial statements and records of Carlisle and determine the net profits.
     Such determination shall be binding on the parties.




                                           3
6.   MONTHLY USE PAYMENT. In consideration of this Agreement, Carlisle shall
     pay monthly Use Payment to the City of Muskegon in an amount equal to
     $3,645.83 during the initial Term. Provided, each subsequent five-year renewal
     option thereafter, the applicable monthly Use Payment will be adjusted as
     follows:

            a. Option #1         $4,229.17
            b. Option #2         $4,666.67
            C. Option #3         $4,958.33
            d. Option #4         $5,250.00
            e. Option #5         $5,541.67
            f. Option #6         $5,833.33

     Construction costs paid by Carlisle and/or reimbursed to the City of Muskegon,
     up to $650,000 as set forth in paragraph 4, will result in a use credit to Carlisle at
     the rate of $7.00 per month for each $1,000 of construction costs incurred
     together with interest on the unreimbursed construction costs calculated at the
     rate of 5% per annum. Any unused credit for the month shall roll over and be
     added to the total available use credit in subsequent months. These credits shall
     continue monthly for the term of this Agreement and any extensions thereof to
     and until such time as the use credit is fully utilized and amortized.

7.   ADJUSTMENT OF MONTHLY USE PAYMENT. The monthly Use Payment
     shall be adjusted upon the following events and upon the following terms:

     i. Professional Hockey, Football 1 and Soccer Games. The amount of monthly
     use fee shall periodically increase during months when there occur in the Arena
     USHL hockey, professional football, and/or professional soccer games. The
     amount of such increase shall be the sum of $500 per USHL hockey event day,
     $400 per professional football event day and $400 per professional soccer event
     day that takes place at the Arena during a given month, and shall be paid with
     the payment of the following month's use payment. For example, if during the
     term of this Agreement there are five hockey events and two football events at
     the Arena during the month of January, Carlisle's use fee for the month of
     February would be increased by $3,300 ($500 x five hockey events ($2,500) +
     $400 x two football events ($800) = $3,300). Carlisle shall have no further
     obligation to provide financial support or sponsorship to any event using the
     Mercy Health Arena. If Carlisle can reasonably demonstrate that events held in
     the Arena other than USHL hockey, professional football, and professional
     soccer, negatively impact the gross sale of Carlisle, Carlisle shall not be
      obligated to pay a temporary rent increase for any such other events.

     ii. Suspension of Liquor License. In the event that the License issued by the
     MLCC shall be suspended, Use Payments shall be suspended pro rata during
     such suspension term.



                                             4
8.    CONTRIBUTION TO OVERHEAD AND MAINTENANCE. Carlisle shall also pay
      to the City of Muskegon a contribution for overhead utilities not separately
      metered and maintenance an amount equal to $1,750 per month during the initial
      Term.

9.    UTILITY COSTS. City shall pay all charges for gas, electricity, water, power,
      telephone, cable television and internet service used, rendered or supplied upon
      or in connection with the Carlisle Space. City shall have the discretion to set the
      level of cable service provided within the Carlisle Space. Carlisle may request
      that the City upgrade such services, with the additional associated costs added
      to Carlisle's contribution to overhead and maintenance as outlined in Section 8 of
      this Agreement.

10.   ASSIGNMENT. Carlisle shall not assign this Agreement without prior written
      consent of the City of Muskegon and the MLCC. Such approval and consent
      shall not unreasonably be withheld by the City of Muskegon and shall be subject
      to the rules and regulations of the MLCC.

11.   OBLIGATIONS OF THE CITY OF MUSKEGON. The City of Muskegon shall
      purchase all alcoholic and food inventory to be used by the Restaurant. The City
      of Muskegon shall furnish "janitorial services" for the exterior of the building and
      in lobby areas and restrooms used by the public, exclusive of those areas used
      and managed by Carlisle. The City of Muskegon agrees to maintain in
      satisfactory working order, all public ways and structures of the Arena, including
      plate glass, roof, and outer walls and heating, electrical and plumbing supply
      sites, air conditioning and hot water supply units. The City of Muskegon agrees to
      allow use of its dumpsters by Carlisle, and the cost of such service shall be
      shared between The City of Muskegon and Carlisle. The City of Muskegon
      agrees to be responsible for any structural repairs, replacements or changes in
      the Arena which affect the Carlisle Space for its intended purpose.

12.   OBLIGATIONS OF CARLISLE. Carlisle shall reimburse the City of Muskegon
      for all alcoholic and food inventory purchased by the City of Muskegon for the
      Restaurant within 15 days of receipt of an invoice from the City of Muskegon.
      Carlisle agrees that it will pay all expenses in connection with the use and
      management of the Carlisle Space and fixtures, including, but not limited to, all
      rights and privileges granted, including all taxes, permits, fees, license fees and
      assessments lawfully levied or assessed upon Carlisle's personal property or
      upon its use of possession of the Carlisle Space and fixtures. Except for the
      License, Carlisle agrees to secure all permits and licenses required related to its
      use of the Carlisle Space, including any other metered utility services provided to
      the Carlisle Space.

      Carlisle agrees that it will at all times maintain the Carlisle Space and fixtures in a
      neat, clean, safe, sanitary and orderly condition, and shall provide janitorial
      services with respect thereto. Carlisle shall provide for the sanitary handling and


                                             5
      disposal of trash and other refuse from its operation in a manner satisfactory to
      the City of Muskegon.

      Carlisle will make no structural changes or additions to the Carlisle Space without
      first obtaining written approval from the City of Muskegon.

      Carlisle agrees to provide and pay for any and all decorations to the Carlisle
      Space. Carlisle shall provide the following services from the Carlisle Space at all
      times during the term of this Agreement at its sole cost and expense:

      a.     Carlisle shall furnish, at its expense, all service equipment of every sort
      (such as silverware, linen, glassware, crockery, utensils, pots and pans, and
      additional equipment), which may be required for use in Carlisle's operation and
      which is not already presently located in the Carlisle Space.

      b.     Carlisle shall undertake to comply with all MLCC rules and shall not allow
      entertainment.

      c.     Carlisle shall cooperate with the City of Muskegon in securing all permits
      and licenses required by any public agency, including the License issued by the
      MLCC in connection with the operation of the Arena as a sports and
      entertainment venue.

      d.     Carlisle shall carry workers compensation insurance in the amounts
      required by state law for all employees hired by Carlisle to work in the Carlisle
      Space.
13.   ORDINANCES AND STATUTES.                Carlisle shall comply with all statutes,
      ordinances and requirements of all municipal, state and federal authorities now in
      force or which may be in force, pertaining to the premises, occasioned by or
      affecting the use there of by Carlisle. The commencement or pendency of any
      state or federal court abatement proceeding affecting the use of the Carlisle
      Space shall, at the option of the City of Muskegon, be deemed a breach hereof.
      The City of Muskegon represents and warrants that the Arena shall be in
      compliance with the Americans with Disabilities Act, and its regulation, as of the
      commencement of this Agreement.
14.   MAINTENANCE, REPAIRS, ALTERATIONS. Carlisle shall, at its expense and
      at all times, maintain the Carlisle Space in good and safe condition, including
      plate glass, electrical wiring, plumbing and heating installations. Carlisle shall
      also maintain in good condition such portions adjacent to the Arena within the
      Carlisle Space, such as sidewalks, driveways, lawns and shrubbery.
15.   ENTRY AND INSPECTION. Carlisle shall permit the City of Muskegon or the
      City of Muskegon's agents to enter upon the Carlisle Space at reasonable times
      for the purpose of performing maintenance and making repairs and replacement
      in any case where the City of Muskegon is obligated, and in any other case


                                            6
      where the City of Muskegon determined that it was necessary to do so in order to
      preserve the structural safety of the Carlisle Space to correct any condition likely
      to cause injuries or damages to persons or property.
16.   DAMAGE OR DESTRUCTION OF PREMISES. If by reason of any cause the
      Carlisle Space is damaged to such an extent that the Carlisle Space is unusable
      in whole or in substantial part, then:

      a.     If the repairs and rebuilding necessary to restore the Carlisle Space to its
      condition prior to the occurrence or the damage can be in the reasonable
      judgment of Carlisle be completed within ninety (90) days from the date on which
      the damage occurred, Carlisle shall so notify the City of Muskegon in writing and
      shall proceed promptly with such repairs and rebuilding, and in such event the
      use of said premises shall be abated for the period from the date of the
      occurrence of such damage to the date upon which such repairs and rebuilding
      are completed; and

      b.      If such repairs and rebuilding cannot, in the reasonable judgment of
      Carlisle, be completed within ninety (90) days, the City of Muskegon and Carlisle
      can mutually agree either to:

             •      Have Carlisle proceed promptly with said repairs and rebuilding, in
                    which event the said use shall be abated; or

             •      To terminate this Agreement.


17.   RISK OF LOSS. During the term of this lease, and any extension or renewal
      thereof, the risk of loss with respect to all risks insurable under a fire and
      extended coverage insurance policy meeting the requirements of the laws of the
      State of Michigan, together with the risk of loss with respect to all uninsurable
      losses to the premises which are subject to the control or prevention by Carlisle,
      shall rest upon Carlisle.

18.   SUBROGATION. Carisle, its officers, agents or employees shall not be liable for
      damage to the Leased Premises or for interruption of rent resulting from any of
      the perils covered by fire and extended coverage insurance, or which would be
      covered if such insurance were in force, and the City of Muskegon agrees not to
      sue for such damage and that every applicable policy of insurance will contain or
      be endorsed with the standard waiver of subrogation clause. The City of
      Muskegon shall not be liable for damage to the property or business of Carlisle in
      or on the Carlisle Space resulting from any of the perils covered if such insurance
      were in force, and Carlisle agrees not to sue for such damage and that every
      applicable policy of insurance will contain or be endorsed with the standard
      waiver of subrogation clause.




                                            7
19.   INSURANCE. Carlisle, at its expense, shall maintain general liability insurance
      insuring the City of Muskegon and Carlisle with minimum coverage as follows:
      $1,000,000.00. Carlisle shall provide the City of Muskegon with a Certificate of
      Insurance showing the City of Muskegon and CFMC as additional insureds. The
      Certificate shall provide for a thirty (30) day written notice to the City of
      Muskegon and CFMC in the event of cancellation or material change of
      coverage. To the maximum extent permitted by insurance policies, which may
      be owned by the City of Muskegon or Carlisle, Carlisle and the City of Muskegon,
      for the benefit of each other, waive any and all rights of subrogation, which might
      otherwise exist. The City of Muskegon agrees to notify Carlisle in writing as soon
      as practicable of any claim, demand or action arising out of an occurrence
      covered, and to cooperate with Carlisle in the investigation and defense of such
      claim. Carlisle and the City of Muskegon agree that each insurance policy shall
      provide for a minimum of thirty (30) days written notice of cancellation to the City
      of Muskegon. Carlisle shall also be responsible for a portion of the cost of the
      liquor liability insurance purchased by the City of Muskegon for the Arena.
      Carlisle agrees that the amount of the liquor liability premium equal to the percent
      that Carlisle's alcohol sales bear to total sales under the License during the
       measured period of time shall be added to the monthly Use Payment on an
      estimated prorated basis, with any necessary adjustments being made within 30
      days after the end of a calendar quarter.
20.   SIGNS. The City of Muskegon and Carlisle shall cooperate to secure maximum
      signage area for Carlisle which shall be reasonable commensurate with its
      exclusive space. All signage shall be in conformance with applicable laws and
      statutes and Carlisle shall not construct the signage without the prior written
      consent of the City of Muskegon which consent shall not unreasonably be
      withheld or delayed.
21.   ABANDONMENT OF CARLISLE SPACE. If Carlisle shall abandon or vacate
      the Carlisle Space, or be dispossessed by process of law, or otherwise, the City
      of Muskegon shall have the right to declare this Agreement is terminated. In
      such event, any personal property belonging to Carlisle left within the Carlisle
      Space shall be deemed to be abandoned, and the City of Muskegon shall be
      permitted to dispose of such personal property as it deems appropriate.
22.   INSOLVENCY. In the event that a receiver shall be appointed to take over the
      Carlisle's business, and such receivership is not dismissed within sixty (60) days
      or in the event that the Carlisle shall make a general assignment for the benefit of
      creditors, or Carlisle shall take or suffer any action under any insolvency or
      bankruptcy act, the same shall constitute breach of this Agreement by Carlisle.
23.   TERMINATION OF AGREEMENT. Subject to the provisions in Paragraph 25,
      The City of Muskegon, at its option, may declare this Agreement terminated in its
      entirety upon the happening of any one or more of the following events:




                                            8
      a.     If the any expenses, fees, charges, and/or other money payments for
      which Carlisle is financially responsible, shall be unpaid thirty (30) days from the
      date that they become due;

      b.    If Carlisle abandons the Carlisle Space for a period of thirty (30) days at
      any one time, except when such abandonment and cessation is due to fire,
      earthquake, governmental action, default of the City of Muskegon, or other cause
      beyond it control;

      c.    If Carlisle shall use or permit the use of the Carlisle Space at any time for
      any purpose for which the use was not authorized by this Agreement or by a
      subsequent written agreement between the parties after written notice and
      opportunity to cure; and

      d.    If Carlisle shall use or permit the use of the Carlisle Space in violation of
      any law, rule or regulation to which Carlisle had agreed in this Agreement to
      conform after written notice and opportunity to cure.

24.   REMEDIES OF OWNER ON DEFAULT. In the event of any material breach of
      this Agreement by Carlisle, the City of Muskegon may, at its option, terminate
      this Agreement and recover from Carlisle: (a) the worth at the time of award of
      the unpaid monthly Use Payment which would have been earned at the time of
      termination; (b) the worth at the time of award of the amount by which the unpaid
      monthly Use Payment which would have been earned after termination until the
      time of the award exceeds the amount of such loss of use that the Carlisle
      proves could have been reasonably avoided; (c) the worth at the time of award of
      the amount by which the unpaid monthly Use Payment for the balance of the
      term after the time of award exceeds the amount of such loss of use that Carlisle
      proves could be reasonably avoided.

      The City of Muskegon may, in the alternative, continue this Agreement in effect,
      as long as the City of Muskegon does not terminate Carlisle's right to use and
      management, and the City of Muskegon may enforce all his rights and remedies
      under this Agreement, including the right to recover the monthly Use Payment
      under this Agreement, if said breach continues, the City of Muskegon may at any
      time thereafter, elect to terminate this Agreement. Nothing contained herein shall
      be deemed to limit any other rights or remedies which the City of Muskegon may
      have.

25.   RIGHT TO CURE. In addition to the rights herein before set forth, Carlisle shall
      have the right to contest any allegation of material breach in the appropriate court
      in Muskegon County, Michigan. In the event of an adjudication of a material
      default of this agreement by such court, the relief shall provide that Carlisle shall
      have 30 days from the date of such adjudication to cure the default.

26.   RESERVATION OF RIGHTS BY THE CITY OF MUSKEGON,


                                            9
      a.    The City of Muskegon reserves the right to further develop or improve the
      Arena as it sees fits, regardless of the desires or view of Carlisle.

      b.     The City of Muskegon reserves the right to adopt, from time to time,
      reasonable rules and regulations for the operation of the Arena which are not
      inconsistent with the provisions of this Agreement. Carlisle and its agents,
      employees, invitees, and licenses shall comply with all those rules and
      regulations.

27.   SURRENDER AND HOLDING OVER. Carlisle agrees that at the expiration or
      termination of this Agreement, it will quit and surrender the Carlisle Space in
      good state and condition, reasonable wear and tear excepted, and also
      excepting damage arising from acts, events or conditions beyond the control of
      Carlisle, and that Carlisle shall forthwith remove all equipment trade fixtures and
      personal property belonging to it. Carlisle shall give the City of Muskegon the
      first right of refusal to purchase any equipment or trade fixtures purchased by
      Carlisle. Carlisle further agrees that all structures and improvements on the
      Carlisle Space and all fixtures in Exhibit B are the property of the City of
      Muskegon, shall remain upon the Carlisle Space, and shall be in good usable
      order and condition, with allowance for reasonable wear and tear and damage by
      the elements, and also excepting damage arising from acts, events and
      conditions beyond the control of Carlisle. The City of Muskegon shall have the
      right upon such expiration or termination to enter upon and take possession of
      such property.

28.   GENERAL PROVISIONS.

      a.     Governing Law. This Agreement is executed in accordance with, shall
      be governed by, and construed and interpreted in accordance with the laws of
      the State of Michigan.

      b.    Entire Agreement. This Agreement shall constitute the entire agreement,
      and shall supersede any other agreements, written or oral, and any
      contemporaneous or prior negotiations and representations that may have been
      made or entered into, by and between the parties with respect to the subject
      matter of this Agreement and shall not be modified or amended except in a
      subsequent writing signed by the party against whom enforcement is sought.

      c.     Binding Effect. This Agreement shall be binding upon, and inure to the
      benefit of and be enforceable by, the parties and their respective legal
      representatives, permitted successors and assigns.

      d.     Counterparts. This Agreement may be executed in counterparts, and
      each set of duly delivered identical counterparts which includes all signatories
      shall be deemed to be one original document.


                                           10
e.      Full Execution. This Agreement requires the signature of both parties.
Until fully executed, on a single copy or in counterparts, this Agreement is of no
binding force or effect and if not fully executed, this Agreement is void.

f.     Non-Waiver. No waiver by any party of any provision of this Agreement
shall constitute a waiver by such party of such provision on any other occasion or
a waiver by such party of any other provision of this Agreement.

g.      Severability. Should any one or more of the provisions of this Agreement
be determined to be invalid, unlawful, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions of this Agreement
shall not in any way be impaired or affected.

h.     Assignment or Delegation. Except as otherwise specifically set forth in
this Agreement, neither party shall assign all or any portion of its rights and
obligations contained in this Agreement without the express prior written approval
of the other party, which approval may not be unreasonably withheld.

i.     Venue. The parties agree that for purposes of any dispute in connection
with this agreement, the Muskegon County Circuit Court shall have exclusive
personal and subject matter jurisdiction and venue.

j.     Terms. Nouns and pronouns will be deemed to refer to the masculine,
feminine, neuter, singular and plural, as the identity of the person or persons, firm
or corporation may in the context require.

k.     Fax Signatures. The parties have agreed that fax copies of the signed
Agreement shall constitute a valid, enforceable agreement. Each party will mail
originals to the respective party upon their execution of this Agreement.

I.    Notices. Any notice which either party may or is required to give, shall be
given by mailing the same, postage prepaid, to Carlisle at the address shown
above, or the City of Muskegon at the address shown above, or at other such
places as may be designated by the parties from time to time. Notice shall be
sent by regular first-class mail or by registered or certified mail, return receipt
requested.




                                      II
THE CITY OF MUSKEGON


By~
        ~-ttUStr-."\
Name:
Title: Pre~,
Date:      3
               4'
             l ,f, /11"""0-"
              Z-ol.... t    , 2022




CARLISLE'S GOODS & LEISURE, LLC


By:
Name:
      6£.._~
Title: Member
Date: .S/6/'l.,d-..
        I
                        , 2022




                                 12
  Exhibit A

Carlisle Space




       13
                Exhibit B

Carlisle Plans, Specifications and Fixtures



                (attached)




                     14

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