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ADVERTISING PROGRAM AGREEMENT <br />This agreement (the "Agreement "} is being entered into effective October 1, 2013, <br />between the City of San Marcos (the "City ") and Tanger Properties Limited Partnership <br />( "Tanger "). <br />RECITALS <br />1. WHEREAS, Tanger is the owner and operator of the Tanger Factory Outlet Center in <br />San Marcos, Texas (the "Tanger Outlet Center "); and, <br />2. WHEREAS, the City derives significant revenues from retail business and tourism <br />activity in the City; and, <br />3. WHEREAS, in order to ensure the continued success of the San Marcos outlet mall <br />area, to enhance revenue to the City from retail business and tourism activity, and to increase the <br />number of tourists staying in the City's hotel and motel facilities, Tanger has offered to use its <br />professional services and efforts to facilitate a joint advertising program (the "Program ") with <br />the City. <br />AGREEMENTS <br />NOW THEREFORE, in consideration of the mutual promises and covenants contained <br />herein and good and valuable consideration, receipt of which is hereby acknowledged, the parties <br />agree as follows: <br />1. Development of Advertising Program. <br />A. Tanger will facilitate the media planning and buying for the Program, developed in <br />collaboration with the City towards which City funds are to be contributed, in coordination with <br />the City Manager or his designee. Tanger agrees to use these funds with its best professional <br />efforts for the implementation of the Program to promote retail business and tourism activity in <br />the City generally, at attractions in the area of the City, and at the Tanger Outlet Mall. The <br />Program will include a preliminary advertisement /promotion concept, media schedule and <br />advertising plan for the period from October 1, 2013, through September 30, 2014. <br />B. Once initial development of the Program is complete, Tanger will prepare a proposal <br />and provide a copy to the City Manager. The City Manager (or designee) will provide his <br />comments, changes, and objections, if any, on the Program to Tanger within ten business days <br />after receiving the proposed Program, after which all matters not changed or objected to will be <br />deemed approved by the City. Once the Program is approved Tanger may execute advertising <br />contracts in accordance with the Program. <br />C. Tanger will incorporate the City's adopted brand or logo into all advertising programs <br />initiated under this Agreement. <br />Pagel of4 <br />