Reso 2024-3761 - Laserfiche WebLink

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EXECUTION COPY operation, the primary activity of which consists of operating a caf6 or restaurant. 3. TERM. This Lease shall be effective and shall be binding upon LESSOR and LESSEE hereto on the Effective Date. The initial term of this Lease (the "Term") shall be for ten (10) years, commencing on the Effective Date, and shall expire (unless sooner terminated or extended as herein provided) at 6:00 P.M. Eastern Standard Time on the last day of the Term (the "Expiration Date"). Upon completion of LESSOR's Work, as hereinafter defined in Section 10 ("Commencement Date"), LESSOR shall deliver possession of the Leased Premises to LESSEE in "shell condition" so that LESSEE may perform LESSEE's Work, as hereinafter defined in Section 11. If LESSOR, except for reason of any Force Majeure, cannot deliver possession of the Leased Premises to LESSEE by February 1, 2026 (the "Anticipated Delivery Date"), such shall constitute a default by LESSOR, and LESSEE shall have the right, but not the obligation, to terminate this Lease by giving LESSOR written notice of termination within thirty (30) days from the date of default, or to provide LESSOR with additional time to complete LESSOR's Work, and provided that LESSOR exercises reasonable efforts to complete LESSOR's Work in a timely manner neither LESSOR nor LESSOR's agents shall be liable to LESSEE for any loss or damage resulting from the delay or failure in delivery of possession of the Leased Premises. Such right to terminate shall not be afforded to LESSEE if such delays are caused by LESSEE. LESSEE, at its sole expense, agrees to deliver to LESSOR upon the termination of this Lease the entire Leased Premises including all improvements, in a good state of repair and in first class condition, ordinary wear and tear excepted. 4. COMMENCEMENT OF RENT. Unless expressly agreed otherwise in writing, the date of commencement of payment of Rent (the "Rent Commencement Date") shall be the earlier of the date (i) LESSEE commences business operations on the Leased Premises; or (ii) that is one hundred eighty (180) days after delivery of possession of the Leased Premises. Delivery of possession of the Leased Premises by LESSOR shall not occur prior to August 2025. The term "Lease Year" shall mean each period of twelve (12) consecutive full calendar months commencing on the Rent Commencement Date, except that if the Rent Commencement Date is not January 1, then the first Lease Year shall commence on the Rent Commencement Date and shall continue for the balance of the calendar year in which the Rent Commencement Date occurs until December 31 of said year, and each Lease Year after the first Lease Year shall commence on January 1 and end on December 31 of said calendar year; provided, however, that the final Lease Year shall terminate on the Expiration Date. 5. RENEWAL OPTION. Provided LESSEE is not in Default, LESSEE shall have two (2) options to extend the Term for a period of five (5) years each (the "Extension Period"). During the Extension Period, in addition to the continued obligation to pay Additional Rent and Percentage Rent, LESSEE shall pay Base Rent (as hereinafter defined) in the amount that is the greater of: (i) Market Rate Rent (as hereinafter defined), as determined by a qualified, independent appraiser, or (ii) three percent (3%) more than the Base Rent due in the prior year end lease term. LESSEE shall give written notice of LESSEE's intent to exercise each option to extend the term to LESSOR at least 180 days prior to the expiration of the Term. LESSEE's options to extend this Lease for the Extension Period shall not be assignable by LESSEE without the express written consent of LESSOR. The term "Market Rate Rent" as used herein, shall mean the prevailing rental rate, as determined by LESSOR at the commencement of the Extension Period, for renewals of space in the submarket in which the Leased Premises are located, of equivalent quality, size, utility and location, with the length of the applicable Extension Period and the credit standing of LESSEE to be taken into account. Within LEASE AGREEMENT - CREMA DOWNTOWN CORP. Page 3 of 36