Kato Cycle Club agreement/lease proposal for 2006-2008

 

The following will serve as terms of agreement between Kato Cycle Club (KCC) and Motokazie Inc. (MK) for use of the motocross “racecourse” and “parking area” at the KCC grounds. This agreement is valid for the time period of April 1st 2006 through July 31st 2006, April 1st 2007 through July 31st 2007, and April 1st 2008 through July 31st 2008 for the purpose to allow MK to put on 3 per year weekend AMA sanctioned motocross events on the property. During this time period, Motokazie Inc. agrees to lease the property in accordance with this agreement and has exclusive rights to use the racecourse for MK events. No other motocross/motorcycle type event shall occur on the racecourse during this time period. If any other events are scheduled on the racecourse, approval must be settled with Lee Theis 30 days in advance or a $1,000 fine will be paid to MK. Lee Theis must be in attendance for the entire weekend unless arrangements are made with KCC prior. Failure to comply may jeopardize any future events and make this contract Void as determined by KCC.

 

Definitions

“Race Course” refers to the area in which KCC has an existing motocross course.

“Parking area” refers to the parking & camping lot on top of the hill adjacent to the race course, SMC property (leased by MK) and the Grass stand in front of the hill climb hill.

“Property” refers to the KCC property south of the creek to the gravel pit and east of the knoll by the new power to the falls including the MX track to the North West creek bed on the back side of the MX track. This does not include SMC property.

“Excluded Property” The property west of the knoll, northwest and west of the MX track and north of the creek which includes the Club camping area, hill climb hill and flat track will be for club members and their family’s only. Club riding will be permitted in these areas only during race weekends.

“Events” refer to Motokazie operated AMA sanctioned motocross that occur on the property on a given weekend.

Motokazie Inc proposes Saturday practices, Sunday races to include primitive weekend camping on the property.

2006-2008 Proposed Schedule:

  • Use of the property at the Kato Cycle Club for 3 motocross weekends each year.  These event dates will be coordinated with KCC so as to avoid any conflicts with KCC event dates.
  • MK to operate Pit bike national fun races on (2) Saturday nights of race weekend.
  • April to August 3 events total.
  • Each Motocross weekend will include:
    • Primitive camping: opening at 6pm Friday night on the property in designated areas.
      • Supervised and secured by MK or gate remains closed until supervised.
      • Excluding the excluded property to be used by KCC members and families.
    • Practices: Saturday: Gates open at 9:00 am, practice 12:00-5:00 pm.
    • Race Sundays: Gates open 6:30 am, practice at 9:00 am and racing by 10:30 am.

 

Motokazie Inc. will provide:

·         Motokazie will grade facility to curb erosion.  This will be done while Motokazie equipment is at the facility on race weekends.  Motokazie will not make separate or “special” trips to the facility to complete this work.

·         Motokazie will push soil back up the hills as desired.  This will be done while Motokazie equipment is at the facility on race weekends.  Motokazie will not make separate or “special” trips to the facility to complete this work.

·         Motokazie Inc. will maintain existing track. Track is to be groomed after each event. Failure to do so will result in a $500 fine.

·         Motokazie Inc has exclusive rights to vending, displays, billboards, sponsorships and all fees involving the motorcycle operations encompassing the Motokazie event.

·         MK will pre race, mark out with some form of barrier spots track side for vendors, emergency crews and their vehicles and handicap parking.

·         AMA and District 23 sanctions and insurance paid by MK.

·         Own equipment to shape and maintain the track and obstacles. Water for dust control.

·         KCC members and family use of the excluded property on event weekends.

·         Experienced Staff to run all event operations. This includes: Pit gate, admission, Rider sign up, scoring, announcer, parking personnel, Flaggers, ATV vehicle and personnel to operate it on the race courses for transportation of emergency crews and injured riders & all other racetrack operations.

·         Security personnel for the event on the property to restrict off-track riding except the excluded property.

·         Staff stationed at the gate for late comers or the gate physically closed by 10pm nightly excluding KCC members with keys.

·         Radio broadcast equipment must be on the premises, working and used for the race weekend IAW district rules.

·         All supplies needed to operate the practice and race.

·         Guest rules while on KCC grounds handed out at admissions.

·         $1,000,000 Liability insurance, adding KCC as additional insured.

·         Trophy awards for all District 23 racing classes.

·         Liability waivers for pit access and rider sign up. Includes all spectators.

·         Ambulance/Medical staff.

·         Clean up of the property after each event. If not cleaned up a $250 fine will be assessed for the club to clean it.

·         Sufficient portable toilets supplied for the pit/parking areas paid for by MK.

·         Trash dumpsters placed near the track for all trash from the motocross event paid for by MK. If left on site between races they must be locked.

·         Parking at the top of the hill first, then SMC owned property with Large vehicle parking on the hillclimb grass stand until full.

·         Designated community fire pits for the campers as agreed on by MK and KCC President.

·         10 vouchers per practice day for KCC use given to KCC president for disbursement to members.

·         Obtain permission for use of  SMC owned parking area, with MK providing to KCC written permission and  insurance agreement from SMC or Southern Minnesota Dirt Riders Association or whom ever is in charge of the Cedar grove areas owned by SMC.

·          Concession rights to Kato Cycle Club. KCC will not sell beer/ alcohol.

 

Kato Cycle Club will provide

 

·         A three weekend lease from April 1st to July 31st 2006, April 1st to July 31st 2007, April 1st to July 31st 2008, of the property to MK for events only. If MK staff , parking and security are not on site the gates will remain closed on the event weekend until MK staff, parking and security are on site.

·         Use of starting gate. MK will maintain gate in good working order as long as MK continues to hold races at KCC.

·         Use of club owned watering system, water pump and dam if applicable to fill the tanks. KCC will provide 1 person free of charge to operate the pump to fill the tanks with MK staff members. MK to pay for fuel and oil for  pump.

·         Use of KCC owned trash barrels to be placed around the grounds by MK.

·         Concessions at the track side stand.

·         KCC will give 20 meal tickets (pop, chip and 1 menu item) to MK staff for weekend.

·         Parking area for equipment and 10’ x 60’ area for storage building on top of hill.

·         Use of clubhouse for event sign up. Must be cleaned after sign up closes. $200 fee for KCC clean up.

·         Use of installed electrical at the race course. Any additional needs must be extension cords supplied by MK.

·         A KCC radio to MK for communication.

·         Assistance in marketing by distributing MK fliers in local areas. Fliers must be provided 17 days prior to the event.

·         Maintenance of parking areas. This includes mowing, weed cutting and grading of holes caused by KCC events.

·         Weed cutting of track front and spectator front areas.

·         Security for the excluded property area only.

·         A responsible member as the contact person for MK on event weekends from Friday 5:00 pm to Sunday one hour after the event.

 

Budget and rules for proposed Improvements:

 

MK will install stands on all flagging locations.

MK will provide communication devices to all Flaggers.

 

KCC agrees to allow MK to remove all of its ‘easily removed improvements’ from 2003 to 2008 if this agreement is not extended into 2009. MK may only remove its ‘easily removed equipment’ as follows:

1. water hoses, poly pipe, clamps and nozzles.  KCC working water system will be left intact.

2. water pumps

3. 2 water storage tanks

4. MK billboards & signs

5. Flaggers stands

6. storage container

 

Sponsors/ Signage

 

MK has all rights to MK event sponsorship signage on the race course.

 

Non-compete/renewal clause

 

Motokazie will be given first right of refusal for a new lease/contract in year 2009.  MK will present a contract for KCC memberships approval before October 31, 2008. Any competing contract for the event will be offered to MK for first right to refuse or match the contract.

 

Indemnification

 

·         MK will indemnify, defend, and hold harmless KATO CYCLE CLUB from any and all third party claims, costs, liabilities, judgments, and expenses or damages (including reasonable attorneys fees) arising out of MK’s conduct under this agreement. KATO CYCLE CLUB will be listed as an additional insured on all insurance policies obtained by MK for the event.

·         KATO CYCLE CLUB will indemnify, defend, and hold harmless MK from any and all third party claims, costs, liabilities, judgments, and expenses or damages (including reasonable attorneys fees) arising out KATO CYCLE CLUB’s conduct under this agreement

·         A party seeking indemnification under this section shall promptly notify the indemnifying party of any claim or litigation to which the indemnification relates; and the party seeking indemnification shall afford the indemnifying party the opportunity to participate in and, at the indemnifying party’s opting, fully control any compromise, settlement, litigation or other resolutions or dispositions of such claim or litigation, but the indemnifying party substantive rights without such party’s prior written consent (shall not be unreasonably withheld); and in no case shall any such compromise or limitation implicate the rights, obligations or property of the parties beyond the subject matter of this agreement.

 

Money Collection

 

·         MK will keep first ‘paid’ 300 racer entries fees per event and first ‘paid’ 600 Pit entry, spectator fees per event.

·         MK and KCC will split any monies collected in each race weekend over 300 entries, MK 65%, KCC 35%.

·         MK and KCC will split any monies collected in each race weekend over 600 spectators, MK 65%, KCC 35%.

            Monies due KCC collected from events will be paid within 7 working days of each event.

·         ‘Paid’ race entries and/or pit spectator fees are considered any rain checks, cash or checks paid to enter KCC grounds or race on that event weekend. Sponsors, employees, or free gift certificates will not be considered ‘paid’ admissions. There will be a 12 race entry and 32 pit spectator cap to each weekend’s allowance of free passes. This allowance will not include KCC members free entry.

·         MK staff will operate and collect the pit fee using proper waivers and applying wristbands.

·         MK staff will collect event weekend admission fees using AMA waivers and applying wristbands.

·         Kato Cycle Club will collect and keep all concession money.

·         KCC members will pay to practice unless they have a voucher for free practice

·         KCC members will pay to race

·         KCC members are allowed in free of charge on race weekend, members children over 16 yrs must pay. Members children under 16yrs enter free of charge.

·         MK will keep 100% of Saturday practice entry fees.

·         MK will keep 100% of Pit bike national entry fees.

·         KCC president or appointed representative is welcome to ‘Honesty check’ MK’s admissions, pit entry collections and MK’s Computer race entry system.

 

Lease agreement

 

If / when permits are obtained to operate “2006 proposed schedule” “2007 proposed schedule” and “2008 proposed schedule”, Motokazie agrees to lease the property IAW this agreement for the amount of $6,500 each year.  If 3 race event weekends are not approved, this lease and agreement is null and void.

Lease Total Due is $6,500 according to this payment schedule:

·         $1000 due on approved schedule in 2006, 2007 and 2008; and signed contract.

·         3 payments of $1833.34 each due 10 days prior to each event. If not received 10 days prior to the event weekend there will be a 5% late fee.

 

____________________________                                        ________________________

Kato Cycle Club          date:                                                     Lee Theis                     date:

Motokazie Inc 612-282-5463

PO Box 56

Jordan, MN 55352