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HomeMy WebLinkAboutReso 98- 53 RESOLUTION NO. 98- 53 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA APPROVING AMENDED LEASE FOR OFFICE SPACE FOR THE CITY OF SUNNY ISLES BEACH GOVERNMENT CENTER ATTACHED AS EXHIBIT "A"; AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, by Resolution 97-8, the City Commission approved the execution of a lease at 17070 Collins Avenue for the build-out of the Government Center; and WHEREAS, the City has created a Police Department is in the process of staffing that Department and is therefore in need of additional space to accommodate same; and WHEREAS, the Mayor wishes the Commission to consider the space and the lease terms offered the City for its review and consideration; NOW THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA: Section 1. The Mayor is hereby authorized to enter into a lease agreement on substantially the same terms and conditions as set forth in the lease attached as Exhibit "A", and incorporated herein by reference as may be modified by the Mayor and City Attorney as to nonmonetary terms. Section 2. Should any material changes be made, the Mayor shall bring the lease before the Commission for further review and consideration. THIS RESOLUTION SHALL BE EFFECTNE UPON ADOPTION, this 28th day of May, 1998. Attest: MIAMI,P,\DOCS\LMD\ML\64734.1 ,5/11198 (lO,58AM) 1 ~J ~~\l\~ Richard Morilla-Brown City Clerk Approved As to Form and Legal Sufficiency ~ Lynn M. Dannheisser City Attorney Moved by: ~~IN- w\'VYhJvJ ~l~ {~-- Second by: V trl-.e .. 5-u L- ~~ i. ',I' ~..., ~.. ~ oJ. .1 MIAMI'F:\QOCSuMD\ML\64734.1 ,5/11/98 (I O,58AM) 2 Addendum to Lease Agreement ("Lease") between R.K. Associates, Inc., ("Lessor") and the City of Sunny Isles Beach ("Lessee") for 17070 Collins A venue, Suites 250,251, 252, 253, 254, 255~ 256 (the "leased premises"). THIS ADDENDUM IS AND FORMS A PART OF THE LEASE DATED MAY I, 1998 AND SHALL SUPERCEDE AND REPLACE ALL PRIOR ADDENDA BETWEEN LESSOR AND LESSEE. TO THE EXTENT THE TERMS OF THIS ADDENDUM CONFLICT WITH THOSE CONT AINED IN THE BASE LEASE, THE TERMS OF THIS ADDENDUM SHALL CONTROL. THE TERMS OF THE LEASE WHICH ARE NOT MODIFIED BY THE TERMS OF THIS ADDENDUM SHALL REMAIN THE SAME AND IN FULL FORCE AND EFFECT. THIS ADDENDUM IS A TT ACHED TO AND MADE A PART OF THE LEASE AGREEMENT AND SHALL SUPERCEDE AND REPLACE ALL PRIOR ADDENDA. I. Monthly Rent. As an inducement for Lessee to enter into the Lease for the leased premises for City Hall, Police Station and Government Center for the City of Sunny Isles Beach, which shall include its municipal offices, police headquarters, meeting rooms, public hall and related municipal functions for the City, Lessor grants Lessee in concessions for monthly rent as follows: 1. Rent shall commence on October 1, 1998. 11. Notwithstanding anything to the contrary in the original Lease, the base rent from October 1, 1998 to and including December 31, 2003, shall be TEN THOUSAND FIVE HUNDRED ($10,500.00) DOLLARS per month or ONE HUNDRED AND TWENTY-SIX THOUSAND ($126,000.00) DOLLARS per year for a five-year period. Rent will commence on October 1,1998. Additionally, operating expenses set forth in Paragraph 23 of the Base Lease are deemed included in the monthly rent payment and shall not be otherwise separately due and payable by the Lessee, either during the base term or during the renewal period. 2. Option to Renew. Provided the tenant is not in default of any terms or conditions of this Lease at the time the option term is scheduled to commence, the Lessee shall have, within its sole option, to be exercised by written notice to Lessor at least three months prior to December 3 1,2003, to renew this Lease for two successive one year option periods, on the following terms: 1. In year six beginning January 1, 2004 and ending December 31, 2004, the monthly rent will be increased to SEVENTEEN THOUSAND ($17,000.00) DOLLARS for that year, plus, ONE THOUSAND ($1,000.00) DOLLARS for ground floor elevator access in accordance with Paragraph 4 hereinbelow. n. For year seven, beginning January 1,2005, and ending December 31,2005, the base rent will be increased to NINETEEN ($19,000.00) DOLLARS plus ONE THOUSAND ($1,000.00) DOLLARS Elevator Access rent as set forth in Paragraph 4, hereinbelow. 3. Peaceful Enjovment. Lessee shall and may peaceably have, hold, and enjoy the leased premises subject to the terms hereof and provided Lessee pays the rental herein recited and performs all covenants and agreements herein contained. 4. Authority to Execute. Lessee covenants and warrants to Lessor that: (i) Lessee is a duly authorized existing corporation. (ii) Lessee is qualified to do business in the State of Florida. (iii) Lessee has the full right and authority to enter into this Lease. (iv) Each of the persons executing this Lease on behalf of Lessee is authorized to do so. (v) This Lease constitutes a valid and legally binding obligation of Lessee enforceable in accordance with its terms. 5. Premises. The approximate square footage of the leased premises is 20,750 gross square feet. 6. Ground Floor Elevator Access. As an additional consideration for this Lease, Lessor has secured and delivered, and Lessee acknowledges the delivery, of a ground floor entrance to the leased premises that will permi t direct access to the rear elevator of the leased premises through the ground floor of the shopping center. As consideration for the delivery of this space, Lessee agrees to pay ONE THOUSAND ($1,000.00) DOLLARS per month for permission to use this space. Lessor agrees to be responsible for the maintenance and service on the elevator, which may include the procurement of a maintenance and service contract on the elevator. 7. Sales Tax. As the City of Sunny Isles Beach is a political subdivision of the State of Florida, and an incorporated municipality, tax exempt status will apply to the premises. 8. Delivery of the Leased Premises. Lessee accepts the leased premises in "AS IS" condition except as otherwise specifically set forth in the Lease Agreement and this Addendum. Lessee shall undertake construction necessary to ready the premises for business of the City, including receipt of a certificate of use and occupancy and all zoning approvals and licenses. 9. Elevator/ AD A Requirements. Lessor represents to Lessee that as of the date of completion, the shopping center is in full compliance of all ADA requirements. Lessor agrees to make any future changes or improvements to the shopping center including the leased premises as mandated by applicable laws, ordinances, orders, regulations of federal, state, county or municipal authority now or hereinafter in effect in order to be in compliance with any building or ADA code. Lessor shall be Page 2 of 7 responsible for these improvements. 10. Access to Public. Lessor understands and agrees that the City of Sunny Isles Beach shall have meetings of the Commission (and/or other boards) that are publicly attended and Lessor agrees there shall be access to the public at all times to hold public meetings as well as during normal business hours. 11. Repairs and Maintenance. A. Lessor shall keep the foundation, the outer walls and roof of the building in which the premises are located and the common areas of the shopping center, electrical system, plumbing system and HV AC systems in good repair, except that Lessor shall not be called upon to make any repairs caused by the negligence of the Lessee, its agents or employees. B. Lessor warrants the HV AC unit for the leased premises for the duration ofthis Lease. During the term of the Lease, the Lessor shall be responsible for roof repairs and replacement thereof, as necessary, to keep same leak free and in watertight condition. In addition, during the entire term of the Lease, the Lessor, at its expense, shall correct all structural and other defects in the foundation, floor slab, roof and exterior walls of shopping center contained in the leased premises and shall maintain, at its cost and expense, the HV AC system in good operating condition and properly functioning. C. Lessor agrees to remedy the problem of air contamination inside the leased premises caused by the intake of smoke from the wood-burning stove on the premises leased by the restaurant below in the event of a continuing problem. 12. Police Vehicle Parking:. A. In conjunction with the Lease Agreement, Lessor hereby grants Lessee the right to utilize portions of the rear parking area, as designated on the attached site plan, for police vehicle parking area. Lessee may install an 8' high chain link fence and electric security gate. The City will petition for a parking variance so that Lessor's parking calculations are not affected by this use of Lessor' s parking lot. Lessee will maintain this area at its sole cost and expense. In the event a variance is not granted, police vehicles will be permitted to park in a mutually agreeable area. B. Lessor shall assign to Lessee a parking space at 17018 Collins Avenue at the front entrance of the ground floor elevator. This parking space shall be designated with a sign for "Police Vehicle Only." In the event that it is necessary to eliminate the parking spaces for persons transporting young children and strollers in accordance with Section 33-122.2 of the Miami-Dade County Code (also known as "Baby Page 3 of 7 .. Stroller Parking") then, and in that event, the City shall take whatever action is necessary to create this space for said police vehicle. C. Lessee shall also be permitted to park an additional three police vehicles in the main portion of the shopping center parking area and those three vehicles shall not be restricted to parking in the rear parking area. 13. Further Modifications. In addition to the modifications set forth hereinabove, the Base Lease is further modified as follows: A. Second Paragraph: Assignment/Subletting. The language contained in the Base Lease is modified and superceded as follows: With regard to Lessee and Lessor, any requested consent from either party will not be unreasonably withheld. B. Third Paragraph: Personal Property-Lessee's Responsibility: The language contained in the Base Lease is modified and superceded as follows: Except for damages, loss or claim arising out of intentional acts or negligence of Lessor, its agents or employees. C. Fourth Paragraph: Compliance with Laws: The language contained in the Base Lease is modified and superceded as follows: All other tenants will comply with all laws imposed as well as Lessee, including Lessor. D. Fifth Paragraph: Fire-Casualty: The language contained in the Base Lease is modified and superceded as follows: In the event of any casualty, Lessee will remit payment of all rent and expenses either from its own funds or look to its business interruption coverage to pay these expenses. Lessee will be entitled to recover its portion of insurance proceeds on their furniture and fixtures once the space has been reconstructed. In the event the premises are rendered untenantable for a period exceeding thirty (30) days and Lessor does not intend to reconstruct the shopping center in the same configuration as the original footprint, either party may terminate the lease agreement by providing written notice of their intent to terminate the lease agreement. In the event of a fire, if available, Lessor will relocate Lessee to another space in the city of Sunny Isles Beach that is owned by Lessor. E. Sixth Paragraph: Default. In addition to the language contain in the Base Lease agreement, for clarification purposes, a monetary default shall occur in the event payments due for the first day of the month have not been received by Lessor on the 10th day of the month. A non-monetary default will be based on Lessee not curing a default of which they have been notified in writing of and after a fifteen (15) day period has elapsed. Failure on the part of the Lessor to adhere to its obligations under the lease agreement shall also constitute a default on the part of the Lessor. Page 4 of 7 . . F. Eight Paragraph: Collection. The language contained in the Base Lease is modified and superceded as follows: In the event of litigation, the prevailing party will be entitled to reasonable attorneys fees and costs. G. Ninth Paragraph: Utilities. The language contained in the Base Lease is modified and superceded as follows: In the event of non-payment of utilities, Lessee shall have a ten (10) day period from notice to cure said default prior to Lessor invoking penalties. Lessor represents to Lessee that all utilities are currently separately metered to the leased premises. H. Tenth Paragraph: Security Interest. The language contained in the Base Lease is modified and superceded as follows: Pursuant to Florida statutes, Lessor will maintain a first priority lien on all furniture, fixtures and equipment. Lessee will be permitted to encumber certain office equipment with Lessors written consent. I. Eleventh Paragraph: Lessor's Access. The language contained in the Base Lease is modified and superceded as follows: agreement, the following is inserted: Lessee shall have reasonable access to the leased premises provided Lessor provides reasonable notice to Lessee. J. Twelfth Paragraph: Acceptance of Premises and Repairs: The language contained in the Base Lease is modified and superceded as follows: Except as otherwise provided herein as the responsibility of the Lessor, in the event Lessee fails to make repairs required to be made inside the leased premises and such failure impacts other tenants within the shopping center, Lessor shall be entitled to make such necessary repairs and shall be entitled to recover the reasonable costs of those repairs plus overhead in the amount of 10%. It is under stood that Lessee is responsible for electrical, mechanical, plumbing and interiors of its leased premises. K. Fourteenth Paragraph: Hold Harmless. The language contained in the Base Lease is modified and superceded as follows: Landlord shall remain liable for damages sustained by Lessee as a result of Lessor's or its agents intentional, willful or negligent acts. L. Seventeenth Paragraph: Use and Return of Security Deposit. The language contained in the Base Lease is modified and superceded as follows: There is no security deposit and the terms of the paragraph are hereby deleted in their entirety. M. Twentieth Paragraph: Notice. The language contained in the Base Lease is modified and superceded as follows: All notice will be effective upon delivery to the leased premises or receipt by Lessee at its designated main offices or any address designated by Lessee, whichever is sooner. Page 5 of 7 . , N. Twenty-Third Paragraph: Operating Expenses. The language contained in the Base Lease is modified and superceded as foJlows: For the entire term of the lease agreement through September 30,2005, operating expenses wiJl be deemed included in the base rental payments pursuant to this Addendum. O. Twenty-Fourth Paragraph: Insurance. The language contained in the Base Lease is modified and superceded as follows: The insurance carrier requirement wiJl be amended to aJlow for Lessee to ONE MILLION ($1,000,000.00) DOLLARS in commercial and general liability insurance and aJl risk property coverage for the entire shopping center. AdditionaJly, upon fifteen (15) days written notice, Lessee shaJl reimburse Lessor, and other tenants, all extra insurance premiums caused by Lessee's use of the leased premises. P. Twenty-Eight Paragraph: RepresentationslW arranties. The language contained in the Base Lease is modified and superceded as follows: This paragraph will be deleted in its entirety. Q. Thirtieth Paragraph: Subordination. The language contained in the Base Lease is modified and superceded as follows: Notwithstanding anything to the contrary set forth herein, Lessor agrees to obtain and shaJl deliver to Lessee, a non-disturbance agreement from any and all mortgagees to which the Lease is subordinated which shall be binding on mortgagees, its successors and assigns and provide that so long as this Lease shall be in fuJl force and effect: a) the Lessee shall not be joined as a defendant in any proceedings which may be instituted to terminate or enforce the underlying lease or to foreclose or enforce the mortgages; b) Lessee's possession and use of the leased premises and the improvements in accordance with the provisions of this Lease and Lessee's rights under this lease shall not be affected or disturbed by reason of the subordination of the mortgage; c) Mortgagee shall subordinate and subject its rights, if any, to any portion of the insurance proceeds otherwise payable to Lessor or Lessee, to the extent necessary for Lessor and Lessee to comply with their obligation of repair and restoration under this Lease and d) if Mortgagee or any purchaser at a foreclosure sale succeeds to Lessor's interest in the property, mortgagee or such purchase shall be bound by all of the terms and conditions hereof. If mortgagee or any successor in interest shall succeed to the rights of the Lessor under this lease whether through possession, surrender, assignment, subletting, judicial or foreclosure action, or delivery of a deed or otherwise, Lessee will attorn to and recognize such successor landlord as Lessee's landlord and the successor landlord will accept such attornment and recognize Lessee's rights under this Lease, including without limitation, Lessee's right of possession and use of the premises in accordance with the provisions of this Lease. This clause shall be self operative and no further instrument of attornment and recognition will be required. R. Thirty-Second Paragraph: Mechanics Liens. The language contained in the Base Lease Page 6 of 7 . is modified and superceded as follows: Lessee may also bond off liens caused by Lessee's failure that may be placed on Lessor's title. s. Thirty-Third Paragraph: Eminenr Domain. The language contained in the Base Lease is modified and superceded as follows: If the entire shopping center is taken for any reason whatsoever by any public authority, then either party shall have an immediate right to terminate this lease agreement and Lessee shall retain its portion of any award for the personal property and improvements contained in the leased premises only. If a portion less than 50% of the shopping center is taken and the leased premises are unaffected by this action, the lease shall remain in full force and effect. T. Thirty-Seventh Paragraph: Delivery of the Leased Premises. The language contained in the Base Lease is modified and superceded as follows: Lessee will return the premises to Lessor in the condition specified in this paragraph either upon the termination date of the lease agreement or in the event the lease is terminated prior. U. Thirty-Ninth Paragraph: Notice of Termination. The language contained in the Base Lease is modified and superceded as follows: Lessee will permitted to deliver Lessor three(3) full calendar months written notice prior to the expiration of the lease term to inform Lessor of their intent to terminate the lease agreement and not execute their options. V. Forty-Sixth Paragraph: Display Restrictions. The language contained in the Base Lease is modified and superceded as follows: All requirements imposed on Lessee will also be in all other tenant leases in the shopping center and be uniformly enforced. Lessor's consent to signage will not be unreasonably withheld. W. Fortv-Ninth Paragraph: Lessee Breach. This paragraph will be deleted in its entirety. X. Fifty-Fourth Paragraph: Use of Additional Areas. The language contained in the Base Lease is modified and superceded as follows: Any relocation of Lessee will be agreed upon by Lessor and Lessee prior to any relocation. Lessee will agree to relocation with the understanding that all costs are to borne by Lessor, including all built to suit requirements of Lessee. AGREED TO this ~ day of May, 1998 by: R. K. ASSOCIATES, INC. (Lessor) J--- - J:V1~~J Page 7 of 7 Business Lease THIS AGREEMENT, entered into this~day of May 1998 between R. K. ASSOCIATES, hereinafter .called the Lessor, party of the first purt,~nd city of Sunny Isles Beach of the County of DADE and State of FLORIDA hereinafter called the Lessee or Tenant, party of the second part: WITNESSETH, That the said Lessor does this day lease unto said Lessee, and said Lessee does hereby hire and take as Tenant under said Lessor Space. No. 17070 Collins Avenue'#250-256 Sunny Isles Beach, Florida Situate In DADE COUNTY, STATE OF FLORIDA I for the term of Seven (7) Years Eight (8) Months beginning the 1 st day of May 1998, and ending the 31 s t day of December 2005 at and for the agreed rental, payable as' follows: IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH WITHOUT DEMAND, DEDUCTION OR SETOFF AT: 'l'hirty Thousand Dollars ($30,000.00) BASE RENT PER MONTH; EQUALING Three Hundred Sixty Thousand Dollars ANNUAL BASE RENT .. . ., ($360,OOp.00) And additional rent as hereinafter set forth In this lease; plus all taxes In the nature of sales, use or similar taxes now or hereafter assessed or levied by any taxing authority upon the payment of fixed rent or additional rent as hereinafter defined. COMMENCING JANUARY 1, 20~ AND ON EACH SUBSEQUENT JANUARY 1 OF THE ORIGINAL LEASE TERM AND ALL OPTION PERIODS, THE BASE RENT WILL BE INCREASED ANNUALLY BY FIVE (5%) PERCENT, OVER THE PREVIOUS YEAR'S BASE RENT. Lessee, upon the execution of this lease, agrees to pay the amount of $ none ~ 0 - which shall be held as security for the Lessee's performance as herein provided and refunded to the Lessee at the end of this leasq subject to the Lessee's satisfactory cOf!1pliance with the conditions hereof, as stipulated in paragraph 17 of this lease, All payments to be made to the Lessor on the first day of each and every month in advance without demand at the office of R.K. ASSOCIATES 17100 Collins Avenue, #225, Miami Bcacll, Florida 33160 or at such other place and to such other person, as the Lessor may from tJll18 to time designate in writing. FIHST: USE: It is hereby understood and agreed that the use of the leased premises is limited to Governlllent Center, City Hall,Police Station, Building Department und ull related uses and lor no other purposes whatsoever. Any violation of the agreed use, or any type of disturbance or interference with any other Tenant's use clause, business and/or exclusivity will be a violation of this lease agreement. In the event there is a violation of this use clause. Lessor shall retain the right at it~ sole option to terminate this lease agreement immediately. Nothing contained in this lease shall give the Lessee any right to demand performance by or from any olller Lessee or from the Lessor. Moreover, violation of this clause by another Tenant located at the shopping center of which the leased premises are a part of shall not permit the Lessee to have the same violation or otherwise operate as a waiver of Lessor's rights in this lease. . SECOND: ASSIGNMENT-SUBLEASING: The Lessee shall not assign this lease, nor sub-let the premises, or any part thereof, without Lessor's .written permission, In the event Lessor grants Lessee the right to sublet, It is fully agreed and understood that Lessee will be responsible for completing all necessary improvements in order to retrofit the leased premises for occupancy. Lessee shall continue to remain fully responsible for all obligations due under tile terms of the lease agreement. THIRD: PERSONAL PROPERTY-LESSEE'S RESPONSIBILITY: All personal property placed or moved in the premises above described shall be at the risk of the Lessee or owner thereof. L:~ssor, any agent of the Lessor, and/or any principal of the Lessor shall not be liable for any and all damage to said p.ersonal property, to the Lessee arising from the bursting or leaking of water pipes, from any act of negligence of any ~o-Tenant or occupant of the building or of any other person whomsoever. '. FOURTH: COMPLIANCE WITH LAWS: The Lessee shall promptly execute and comply with all stat~tes, ordinances, rules, orders, regulations and requirements of any applicable Federal, State and City Government and of any and all their Departments and Bureaus including any Taxing Authority or Utility;' and Lessee shall also promptly COin ply with all rules, orders and regulations of the applicable fire prevention codes for the prevention of fires, all at Lessee's own cost and expense, FIFTH: FIRE-CASUALTY: In the event the premises shall be destroyed or so damaged or injured by fire or other casualty during the life of this agreement, whereby the same shall be rendered untenantable, then the Lessor shall have the right to render said premises tenantable by repairs within ninety days therefrom. If said premises are not rendered tenantable within said time, it shall be optional with either party hereto to cancel this lease, and in the event of such cancellation the rent shall be paid only to the date of such fire or casualty. The cancellation herein mentioned shall be evidenced in writing. Notwithstanding anything to the contrary contained herein, Lessee shall be required to pay all rent and operating expenses during any period in which the premises are rendered untenantable, eIther (rom their own source of funds or through their business interruption coverage which Lessee is required to carry "~ ,I fl,j, 1,,<),- r, ,rlrr"\("l[n0flt SIXTH: DEFAULT: The prompt payment of the rent for said premises upon the dates named, and the f,lIthful observance of the rules and regulations printed upon this lease, and which are hereby made a part of this covenont, ond of such other and further rules or regulations as may be hereafter made by the Lessor, are the conditIOns upon which the lease is made and accepted and any failure on the part of the Lessee to comply with the terms of said lease, or any of said rules and regulations now in existence, or which may be hereafter prescribed by the Lessor, shall at the option of Lessor, constitute a default under this lease. SEVENTH: ABANDONMENT: If the Lessee shall abandon or vacate said premises before the end of the term of this lease, or shall suffer the [entto be in arrears, the Lessor may, at its option, forthwith cancel this lease or enter said premises as the agent of the Lessee, without being liable in any way therefor, and relet the premises With or without any furniture that may be therein, as the agent of the Lessee, at such price and upon such terms and for such duration of time as the Lessor may determine, and receive the rent therefor, applying the same to the payment of rent due by these presents, and if the full rental herein provided shall not be realized by Lessor over and above the expenses to Lessor in such re-Ietting, the said Lessee shall pay any deficiency. Lessor shall not be liable to Lessee in the event of any excess. Notwithstanding Lessee's abandonment or Lessor's acceptance thereof, Lessee shall be responsible to satisfy any and all obligations due to Lessor under the terms of this lease. EIGHTH: COLLECTION: Lessee agrees to pay all costs of collections and attorney's fees incurred by Lessor In the event of any breach of this lease by Lessee. This provision shall apply to all trial and appellate proceedings, Lessee also waives all rights to reciprocal attorney's fees under Law. NINTH: UTILITIES: The Lessee agrees that be will pay all charges for rent, gas, electricity or other illumination, rubbish removal, and for all water used on said premises, as well as any and all tax liabilities, and should said charges for rent, light, rubbish removal, water or taxes herein provided for at any time remain due and unpaid for the space of five days after same shall have become due, the Lessor may, at its option, consider the said Lessee <It sufferance and the entire rent shall at once be due and payable and may forthwith be collected by distress or otherwise. TENTH: SECURITY INTEREST: The said Lessee hereby pledges and assigns to the Lessor all tn,e furniture, fixtures, goods and chattels of said Lessee, which shall or may be brought or put on said premises as security for the payment of the rent herein reserved, and the Lessee agrees that the said lien may be enforced by distress (and Lessee waives all rights to require Lessor to post bond), foreclosure or otherwise at the election of the said Lessor. ELEVENTH: LESSOR'S ACCESS: The Lessor, or any of his agents, shall have the right to enter said premises during all reasonable hours, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit said premises, and to put or keep upon the doors or windows thereof a notice "FOR RENT' at any time within six (6) months before the expiration of this lease. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alleralions, or additions, which do not conform to this agreement, or to the rules and regulations of the building. TWELFTH: ACCEPTANCE OF PREMISES AND REPAIR: Lessee hereby accepts the premises in the condition they are in at the beginning of this lease and agrees to maintain said premises in the same condition, order and repair as they are at the commencement of said ter[l1, excepting only reasonable wear and tear arising from the use thereof under this agreement, and to make good to'said Lessor immediately upon demand, any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the building, caused by any act or neglect of Lessee, or of any person or persons in the employ, under the control of the Lessee, or a business Invitee of the Lessee. If Lessee refuses or neglects to repair the leased premises as required hereunder to the reasonable satisfaction of the Lessor as soon as reasonably possible after written demand, Lessor may make such repairs without liability to Lessee for any loss or damage that may occur to Lessee's merchandise, fixtures, or other property, or to Lessee's business by reason thereof, and upon completion thereof, Lessee shall pay as additional rent Lessor's cost for making such repairs plus twenty (20%) percent for overhead, upon presentation of a bill therefor. Said bill shall include interest at the highest legal rate on said cost from the date of completion of repairs by Lessor. THIRTEENTH: INSTALLATION BY TENANT: All personalty installed by Tenant shall be new or completely reconditioned. Tenant shall not make, or cause to be made, any interior alterations, additions or improvements or install, or cause to be installed, any exterior signs, exterior lighting, plumbing fixtures, shades or awnings or make any changes to the store front without first obtaining Lessor's written approval and consent. Tenant shall present to the Lessor plans and specifications for work at the time approval Is sought. FOURTEENTH: HOLD HARMLESS: It is expressly agreed and understood by and between the parties to this agreement, that the Lessor, its principals, employees, agents and all affiliated or related ownership entilies shall not be liable to Lessee for any.damage or injury by water, or water seepage, any damage or injury resulting from the carelessness, negligence, or improper conduct on the part of any other Tenant or agents, or employees, any damage by reason of the breakage, leakage, or obstruction of the water, sewer or soil pipes, or other leakage In or about the said building. Neither the Lessor nor Lessor's agents shall be responsible for any damages caused by, or growing out of, any breakage, leakage, or defective condition of the electrical wiring, air conditioning or heating pipes and equipment, plumbing, appliances, sprinklers, other facilities or other equipment, serving the leased premises, Neither Lessor nor Lessor's agents shall be liable for any damages caused by, or growing out of, any defect in the Shopping Center or any part thereof, or in said Leased Premises or any part thereof of fire, rain, wind or other cause, Lessor, its principals, employees, agents and all affiliated or related ownership entities shall not be liable to Tenant and shall be held harmless from any and all liability to Tenant, except for their intentional and/or willful acts. FIFTEENTH: BANKRUPTCY: If the Lessee shall become insolvent or if bankruptcy proceedings shall be begun by or against the Lessee, before the end of said term the Lessor is hereby irrevocably authorized at its option, to forthwith cancel this lease, as for a default. Lessor may elect to accept rent from such receiver, trustee, or oth1?r judicial officer during the term of their occupancy in their fiduciary capacity without affecting Lessor's rights as contained in this contract, but no receiver, trustee or other judicial officer shall ever have any right, title or interest in or. to the above described property by virtue of this contract. Lessor shall also be granted immediate relief from any applicable automatic stay to seek eviction or other remedies or shall likewise be entitled to an obtain order authorizing a rejection of the lease at the Lessor's option which may limit the Tenant from maintaining possession of the premises, notwithstanding the institution of bankruptcy. In the event Lessor is required to exercise any rights under this paragraph, Lessee agrees to immediately consent to any and all of the relief requested by Lessor, 2 SIXTEENTH, ACCORD AND SATISFACTION: No payment by Lessee, or receipt by Lessor, of a r"''''1 a/nollnt lI18n tire monthly rent herein stipulated shall be deemed to be other than on account of the earliest stIpulated rent, nor shall any endorsement or statement or any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Lessor may accept such check or payment without prejudice to Lessor's light to recover the balance of such rent or pursue any other remedy provided herein or by law. . SEVENTEENTH: USE AND RETURN OF SECURITY DEPOSIT: In the event of the failure of Lessee to keep and perform any of the terms, covenants and conditions of this lease to be kept and performed by Lessee, then the Lessor at its option may, appropriate and apply said entire deposit, or so much thereof as may be necessary, to compensate the Lessor for all loss or damage sustained or suffered by Lessor due to such breach on the part of Lessee. Should Lessee comply with all of said terms, covenants and conditions and promptly pay all of the rental herein provided for as it falls due, and all other sums payable by Lessee to Lessor hereunder, the said deposit shall be returned in full, without interest, to Lessee at the end of the term of this lease, provided the leased premises are returned to the Lessor in good condition, with all fixtures remaining, reasonable wear accepted, EIGHTEENTH: BINDING TERMS: This contract shall bind the Lessor and its assigns or successors, and the heirs, assigns, personal representatives, or successors as the case may be, of the Lessee. NINETEENTH: TIME OF ESSENCE: It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. TWENTIETH: NOTICE: It is understood and agreed between the parties hereto that written nctice mailed, faxed or delivered to the premises 'Ieased hereunder - shall constitute sufficient notice to the Lessee upon mailing, transmission or delivery. Written notice mailed via certified mail, return receipt requested, or delivered to the office of the Lessor shall constitute sufficient notice to the Lessor upon receipt, to comply with the terms of thi~ contract. TWENTY -FIRST: NUISANCE: Tenant shall not commit any waste upon the leased premises or any nUisance or other act or thing which may disturb the quiet enjoyment of any other Tenant at the Shopping Center, Q.r which may adversely affect Lessor's fee interest in the Leased Premises or in the Shopping Center. No loudspeakers, phonographs, machinery, mechanical apparatus, or other devices shall be used or allowed to operate in a manner so as to be heard or seen outside of the leased premises without the prior written consent of the Lessor. TWENTY-SECOND: LESSOR'S RIGHTS: The rights of the Lessor under this lease shall be cumulative, and failure on the part of the Lessor to exercise promptly any rights given hereunder shall not operate as a waiver of any of Lessor's rights. TWENTY-THIRD: OPERATING EXPENSES: Lessee shall pay to the Lessor as additional rent Twenty-Eiqht & One Sixth % of operating expenses incurred during the term of this lease, Operating ( 28 . 6) expenses include, but are not limited to: real estate taxes, all common area maintenance, Lessor's fire and extended coverage and public liability insurance, special assessments, aPplicable charges for all utilities, water and sewer, and management of the property. Payments for said additional rent shall be made monthly, based .on the previous year's total operating expenses, which amount will be adjusted imnua.lly. TWENTY-FOURTH, INSURANCE: The Lessee shall maintain with respect to the leased premises and the property of which the leased premises are a part, commercial general liability insurance in amounts of not less than the following limits: General aggregate limit (otlier than products-completed operations) - $500,000, Products-completed operations aggregate limit - $500,000, Personal and advertising injury limit - $500,000, Each occurrence limit - $500,000 Fire damage limit - $100,000 anyone fire, Medical expense limit - $5,000 anyone person, Plate glass coverage - in amounts sufficient to cover replacement of any and all plate glass in the leased premises; '- With responsible companies qualified to do business in the State of Florida who are well rated by a recognrzed national rating organization of not less than AAA therein insuring the Lessor as well as Lessee against injury to persons or damage to property as provided. In addition to the above referenced insurance coverage, Lessee shall be required to maintain property coverage in the amount of $250,000 (which must include business interruption coverage, which includes payment of all rent and operating expenses to Lessor) or a sufficient amount to provide for the replacement of all furniture, fixtures, and equipment in the lease premises, plus all improvements completed in the leased premises, including Lessor's tenant improvement work. The Lessee shall deposit with th1! -Lessor certificates for such insurance at or prior to the commencement of the term, and thereafter within thirty (30) days prior to the expiration of any such policies. All such insurance certificates shall provide that such policies shall not be canceled without at least ten (10) days prior written notice to each insured name therein including Lessor. The Lessor must be named as additional insured on any insurance policy. Insurance must be in force at the commencement of the term of this lease, Failure to comply with this provision will be considered a violation of this lease and Lessor may, at its sole option, terminate this lease agreement immediately. The Lessee shall not permit any use of the leased premises that will make voidable any ins\lrance on the property of which the leased premises are a part, or on the contents of said property_ The Lessee shall on demand reimburse the Lessor, and other Tenants, all extra insurance premiums caused by the Lessee's use of the premises. TWENTY-FIFTH: ADDITIONAL RENT: It is understood and agreed between the parties hereto that any charges against the Lessee by the Lessor lor services or for work done on the premises by order of tlie Lessee or othelWise accruing under this contract shall be considered as rent due and shall be included in any lien for rent due and' unpaid, 3 TWENTY-SIXTH: HAZARDOUS MATERIALS: Hazardous materials, as defined in Chapter 24 of 1I1C Code of Metropolitan Dade County, shall not be used, generated, handled, disposed of, discharged or stored on the Leased Premises. The requirements of this section may be enforced by preliminary and permanent, prohibitory and mandatory Injunctions as well as otherwise provided by law or ordinance, Lessee hereby indemnifies and holds harmless the Lessor against all claims, causes of action, liability or loss, including reasonable attorneys fees and costs on the trial and appellate level, arising out of a violation by the Lessee of this provision. In the event the Leased Premises is located within the Boundaries of Da'de County, Florida the Director of the Environmental Resources and Management of Metropolitan Dade County, Florida may also enforce the requirements of this provision. TWENTY-SEVENTH: CORPORATE STATUS: Lessee represents that any business organization status that it may purport to have, either at the time of the execution of this, lease or thereafter, shall be maintaine,j in any and all lawful form. In the event Lessee 'possesses corporate status, Lessee shall maintain such corporate status as active and current v.:ith the appropriate state authorities and in the event Lessee fails to maintain such status, Lessor shall have the express authorization, at its sole option, to declare this lease in default or cancel this lease. TWENTY EIGHTH: REPRESENTATIONSIWARRANTIES: If Lessee is a business organization or operates under any other business form, other than an individual sole proprietor, Lessee's authorized representatives represent and warrant, and it is acknowledged that Lessor is relying thereon, that the business form used by Lessee, whether corporate or otherwise, is a duly registered and bona fide business form, that all necessary filing of documents have been !lied with all appropriate governmental agencies, that its business form shall be properly and duly mamtalned throughout the entire leasehold relationship, and that Lessee has sufficient working capital to meet any and all rental obligations that are expected and/or anticipated under the terms of this lease for a period of not less than twelve months. Each of Lessee's authorized representatives, by and through any agent executing this lease, further acknowledge that in the event the above-stated warranties shall fail to be true for any reason whatsoever, Lessor shall be entitled to seek any and all rental obligations that are not timely fulfilled by the Lessee from each of Lessee's authorized representatives, which shall be the joint and several obligation of each and every individual that is or serves as an agent, partner, director, officer or otherwise, whether or not a separate and individual personal guaranty is executed by each and every individual. It is also expressly agreed and understood that in the event of a breach of warranty, Lessor's remedies against each and every authorized representative so warranting shall include, but shall n~t be limited to, all rental obligations, operating expenses and damages arising therefrom. Moreover, if Lessee fails to deliver to Lessor proof or evidence that the above-stated warranties are true at the time of the signing of this lease, then every individual who serves as an agent, partner, director, officer or otherwise shall be personally liable throughout the entire leasehold relationship. In addition, if the corporation signing the lease has no additional assets besides what is contained in the leased premises, and there is no personal guarantee executed in conjunction with the lease, in the event of a default of the lease agreement, after written notice of the default has been served upon the Lessee, Lessor will be granted immediate permission to recapture the leased premises and change all locks to mitigate any further damages. Lessee agrees not to take any legal action against Lessor in order to stop this action. The purpose of this language is to eliminate Corporation without assets to commit fraud and deferring eviction proceedings in bad faith Without any liability. TWENTY-NINTH: WAIVER OF JURY TRIAL: Lessor and Lessee hereunder hereby knowingly, voluntarily and intentionally waive any right that any party may have to a trial by jury in respect to any litigation based hereon, arising out of, or related hereto, whether under or in connection with this lease or any agreement contemplated to be executed in conjunction herewith, or any course of conduct, course of dealing, statements (whether verbal or written) or actions of either party. THIRTIETH: SUBORDINATION: Lessor and Lessee hereby agree that this lease shall be subject and subordinate to any and all mortgages, deeds of trust and other instruments in the nature of a mortgage, now or at any time hereafter, a lien or liens placed on the property of which the leased premises are a part and the Lessee shall, when requested, promptly execute and deliver such written instruments that shall be necessary to show the subordination of this lease to said mortgages, deeds of trust or such other instruments in the nature of a mortgage. THIRTY-FIRST: FINANCING AGREEMENTS: Lessee shall not enter into, execute or deliver any financing agreement that can be considered as a priority to any mortgage or deed of trust that Lessor may have placed, or places in the future, upon the leased premises. . THIRTY-SECOND: MECHANIC'S LIENS: Lessee shall not permit any mechanic's liens, or similar liens, to remain upon the leased premises for labor and materials furnished to Lessee or claimed to have been fucnished to Lessee in connection with work of any character performed or claimed to have been performed at the direction of Lessee and shall cause such lien to be released of record forthwith without cost to Lessor. Lessor mal', at its option, demand that Lessee put up a payment and/or performance bond to protect the interest of the Lessor. Lessee will indemnify and hold harmless Lessor from any or all claims arising out of a mechanic's lien or similar liens due to Lessee. - '- THIRTY-THIRD: EMINENT DOMAIN AND NATURAL DISASTER: In the event the premises, or a substantial portion thereof is taken by any condemnation or eminent domain proceeding where by the same is rendered untenantable the parties hereto shall have the right to cancel this lease agreement without further liability on the part of the Lessor or Lessee. However, Lessee shall assign to Lessor the totality of any award or payment on account of any taking by condemnation. If the leased property is totally or partially destroyed or damaged as a result of a casualty, disaster or hazard, Lessor may, at its sole option, terminate this lease by giving Lessee 30 days' written notice to this effect and Lessor shall have no obligation to rebuild. Except as otherwise provided herein, this lease shall not terminate or be affected in any manner, and Lessee shall pay the rental provided for in this lease. Notwithstanding anything to the contrary contained herein, Lessee shall be required to pay all rent and operating expenses during any period in which the premises are rendered untenantable, either from their own source of funds or through their business interruption coverage which Lessee is required to carry under clause 24 of this lease agreement. THIRTY-FOURTH: LATE CHARGES: Lessor shall have the right to collect one percent (1%) of the current monthly base rent per day for each day rent is delinquent beyond the 7th day of the month. Any money due under this section shall be considered as additional rent. 4 THIRTY-FIFTH: CONTINUOUS.OPERATION: The Lessee shall and must remain open for business yem round and shall not close excepting on holidays and after ordinary hours for business. For the purpose of this lease agreement, ordinary hours of business are 10:00 AM to 9:00 PM, EST. For the purpose of clarification, Lessee shall not go dark during the term of the lease or any extension thereof, In the event of closing, Lessor shall have the option to (a) terminate. the lease and recapture the leased premises and (b) possess all equipment and trade fixtures excluding the inventory of the store. THIRTY-SIXTH: LEASEHOLD IMPROVEMENTS: The Lessee shall at the expiration or other termination of this Lease Agreement remove all Lessee's goods and effects from the leased premises, (including without hereby limiting to the generality the foregoing, all signs and littering affixed or painted by the Lessee, either inside or outside the leased premises). Lessee's right to remove any personal property from the leased premises is conditioned upon Lessee's full and complete discharge of any and all obligations under this lease agreement. In the event ony obligations are due and owing to Lessor at the time Lessee seeks to vacate the premises, Lessee shall take no action to remove any of the personalty located on, in or attached to the leased premises, and Lessor shall be entitled to exercise any and all rights as either secured creditor or Lessor against such property in order to satisfy all such obligations. Lessee also agrees to repair any damage caused to the Leased Premises by the removal of Lessee's personal goods and effects. Anything attached to the property including anything attached to the ceilings, walls and floors (including any carpeting) will remain the property of the Lessor and shall not be removed from the premises by the Lessee. THIRTY-SEVENTH: RETURN OF PREMISES: Lessee shall deliver to the Lessor the Leased Premises, all keys, locks thereto, and other fixtures connected therewith and all alterations and additions made to or upori the leased premises, in good condition, damage by fire or.o!her casualty only excepted. In the event of the Lessee's failure to remove any of Lessee's property from the premises, Lessor is hereby authorized without liability to Lessee for loss or damage thereto, and at the sole risk and cost of Lessee, to remove and store any of the property at Lessee's expense, or to retain same under Lessor's control or to sell at public or private sale, without notice, any or all of the property not so removed and to apply the net proceeds of such sale to the payment of any sum d,ue hereunder. Lessor, at its sole option, may require Lessee, at Lessee's sole cost and expense, to place the Leased Premises back . to the original condition as delivered to Lessee at the inception of this lease, , THIRTY-EIGHTH: MODIFI.CATION:. This lease contains the entire agreement between the partie~ hereto and all prior negotiations, The terms of this lease may only be modified by a subsequent written agreement Signed and sealed by both Lessor and Lessee. The parties to this lease agree that the terms of this lease shall not be more strictly construed <lgainst Lessor, or more favorably for Lessee, notwithstanding Lessor's presentation of this ~~. . THIRTY-NINTH: NOTICE OF TERMINATION:, Lessee agrees to notify Lessor in writing by certified mail, return receipt requested, at least six (6) full calendar months prior to the expiration of the term of this lease of it:; intention to v<lcate the premises on the lease termination date. In the event that the. Lessee fails to give such notice, then and in th<lt event, at Lessor's option, this Lease shall be automaticaliy continued and extended pursuant to the terms contained in the base lease agreement. In the event the base lease agreement contains no option provisions, then the lease agreement will be extended automatically, at Lessor's sole option, for one full calendar year. FORTIETH: RULES AND REGULATIONS: .Lessor reserves the right to promulgate, and Lessee agrees to comply with the Rules and Regulations for the premises, shopping center and Common Areas including but nollimited to Lessee shall maintain, repair and replace whenever necessary, ttie air conditioning systems and or heating systems which service the leased premises.; at the end of the lease term, shall restore the system to good working condition, with clean filters and coils, less reasonable wear and tear. a) Lessee will be responsible for immediate -replacement of its plate glass windows should said windows become damaged or cracked. b) Lessee is expressly prohibited from placing, erecting, or maintaining any sign, lettering, or advertising devices on, in, or about the windows or doors of the leased premises. c) Lessee shall not conduct any auction, fire, bankruptcy, selling-out, or closing-out sale on or about the leased premises d) Lessee, its employees, or agents shali not mark, paint, drill or in any way deface any walls, ceilings, partitions, floors, or ironwork without Lessor's written consent. e) Lessee will not install any equipment which exceeds the capacity of the utility lines leading into the leased premises or the building of which the leased premises constitutes a portion. f) lessee shall give Lessor prompt written notice of any accident;fire or damage occurring on or to the Leased Premises. g) Lessee shall only enlist' the services of a Landlord approved waste company for its trash collection services. If Lessor has selected to utilize (1) trash compactor for the entire project, Lessee agrees to participate with the use of said compactor. If Lessee does not comply, lessee Will be in default of their lease agreement. No radio, television, satellite dish or other similar device shall be installed without first obtaining in each instance the Lessor's consent in writing. No aerial or satellite dish shali be erected on the roof OT exterior walls of the premises, or on the grounds, without in each instance, the written consent of the Lessor. Any aerial or satellite dish so installed without such written consent may be removed by Lessor at any time and Lessor shall not be liable for such removal. The plumbing facilities shall not be used for any other purpose than that for which they are constructed, and no foreign substance of any kind shall be permitted therein, and the expenses of any breakage, stoppage, or damage resulting from a violation of this provision shall be borne by Lessee; who shall, or whose employees, agents or invitees shall, have caused same, Lessor reserves the right from time to tim~ to suspend, amend or supplement the foregoing rules and regulations, and to adopt additional ruies and regulations applicable to the leased premises, Notice of such rules and regulations, amendments and supplements thereto, if any, shall be given to the Lessee, Lessee agrees to comply with all additional and supplemental rules and regulations upon notice of same from Lessor. If provisIon of the lease shall be declared . invalid or unenforceable, the remainder of this lease shall continue in full force and effect. '- 5 FORTY-FIRST: ACCELERATION CLAUSE: In addition to all other rights granted to Lessor in this lease and not as a limitation of said rights, in the event of a termination of this lease as a result of a default by Lessee, Lessor shall have the right and option to accelerate all rental due hereunder. In the event of a default, all rights and remedies available to Lessor shall be cumula\.ive and non-exclusive. FORTY-SECOND: RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state gaidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. pursuant to 3404.056(8), Florida Statutes. FORTY-THIRD: INDEPENDENT COVENANT: Each and every rental obligation Lessee is obligated for under the terms of this lease agreement shall be deemed to be independent covenants to Lessor and shall remain mdependent covenants notwithstanding any other obligation Lessor may have to Lessee under the lease agreement. FORTY-FOURTH: CLEANLINESS: Tenant shall maintain its show windows in a neat and clean condItion and shall keep sidewalks adjoining the demised premises clean and free from rubbish, and shall store all trash and garbage within the demised premises and shall arrange for the regular pick up of trash and garbage. Tenant Shall not burn any trash of any kind in or about the building, nor shall Tenant permit rubbish, refuse, or garbage to accumulate or fire hazards to exist at the demised premises. Tenant shall pay the cost of removal of any of Tenant's garbage, refuse and rubbish. FORTY -FIFTH: DELIVERIES: All loading of goods and deliveries of goods shall be done only at such times, in the areas, and through the entrances, designated for such purposes by the Lessor, The delivery or shippmg of merchandise, supplies and fixtures to and from the Leased Premises shall be subject to such rules and regulations as in the judgment of the Lessor are necessary for the proper operation of the Leased Premises or the Shopping Center. All deliveries must be made before 10:00 AM, EST, unless prior written consent is obtained from the Lessor Trailers or trucks shall not be permitted to remain parked overnight in any area of the Shopping Center, whether loaded, unloaded or partially loaded or unloaded. FORTY-SIXTH: DISPLAY RESTRICTIONS: The Lessee will display and maintain the leased premises in a first class manner at all times. The Lessee can not display any items or merchandise outside the leased premises including the front door and the sidewalk of any common area. A violation of this clause by another Tenant located at the shopping center of which the leased premises are a part, whether with or without the knowledge and/or consent of the Lessor, does not permit the Lessee to have the same violation. FORTY-SEVENTH: SIGNAGE: Lessee is responsible for installing his own signage. Lessee shall promptly erect a sign within the area designated by the Lessor, which sign shall be subject to the prior written approval of Lessor Lessee must use the same size letters, same style, color and system so that the sign conforms with the other signs in the shopping center of which the leased premises are a part. Lessee must utilize the four inch (4") removable access panel to make the electrical hook up. The Lessee covenants that he will keep both signs, the sign undcr the canopy and the sign over the canopy, lit seven' days a week from one hour before sunset until 2:00 AM. Lessec furthcr covcnants that any sign shall be maintained in good condition and repair at all times. FORTY-EIGHTH: PARKING: Lessee, stor~ owners, store managers, and all other store employees must park in the rear parking lot only as specified by Lessor. Front parking lots may only be used by patrons and customers. FORTY-NINTH: LESSEE'S BREACH: It is agreed and understood by the Lessor and the Lessee that any breach of any conditions or terms contained in this lease by the Lessee or any of his employees or agents shall make this lease, at Lessor's sole option, null and void and shall excuse Lessor from any further performance. FIFTIETH: OPTION TO RENEW: Contingent upon Lessee's full compliance with all terms of this lease and Lessee's non default hereunder, Lessor hereby gives and grants to Lessee the right to extend his lease f~r Three (3) successive Five (5) year options from the date of the expiration of the initial term. The option to extend this lease for any term may only be exercised for the immediately succeeding term. At Lessors option, the option to renew will be automatically extended for the full term of the option period unless Lessee gives prior written notice via certified mail to Lessor, not less than six (6) full calendar months prior to the termination date of the lease agreeement of their intent to terminate the lease agreement. If Lessee is in default of the lease agreement at the time the notice is delivered to the Lessor, at Lessors option, all renewal options may be declared invalid and nullified. All of the terms and conditions of the lease agreement shall be applicable for any renewal periods will be increased annually by 50/~ Qver the prior years base rent. If there are no additional options contained in the lease agreement, the lease will be automatically extended for a one year period, unless Lessor elects to terminate the lease agreement. FIFTY-FIRST: USE OF ADDITIONAL AREAS: The use and occupation of the Leased Premises shall include the non-exclusive use, in common with others entitled thereto, of the common areas, employees' parking areas, service roads, mails, loading facilities, sidewalks and customer car parking areas as such common areas now exist or as such common areas may hereafter be constructed, and other facilities as may be designated from time to time by the Lessor, subject however to the terms and conditions of this agreement and the lease agreement and to the rules and reguiations for the use thereof as prescribed from time to time by the Lessor, Notwithstanding the foregoing, the Lessor, at his option, reserves the right to relocate Lessee into another space of similar square footage in the Shopping Center. The Lessee shall' be advised qf said relocation on or before sixty (60) days prior to said relocation. In the event the Lessee shall not agree to the relocation as provided herein, at Lessor's option, this lease shall be canceled and of no further force or effect and the Lessor shall not be liable to Lessee for any damages of any kind whatsoever. ' 6 FIFTY-SECOND: TENANT IMPROVEMENTS: As part and parcel to this lease agreement, Lessee is accepting ltle leased premises in . as-is. condition and agrees to complete all work necessary in order to open the leased premises for business on or before June 1 , 1 997 All work in the leased premises will be performed by a licensed general contractor under the guidelines of the applicable building codes. Lessee agrees to work diligently to open the leased premises for business and that "lime is of the essence' in completing all work and receiving all approvals, In the event Lessee is not open for business by the above referenced date for any reason whatsoever, except Lessor's willful act of negligence, Lessee shall remit a late fee of $50/day to Lessor in addition to all required payments due under the lease agreement. FIFTY-THIRD: FORCE MAJEURE:" In any case where either party hereto is required to do any act, delays caused by or resulting, from acts of God, war; civil commotion, fire or other casualty, labor difficulties, shortages of labor malerials or equipment, governmental regulations, other causes beyond such party's reasonable control shall not be counted in determining the time during which such act shall be completed. FIFTY-FOURTH: CONTROL OF COMMON AREAS BY LESSOR: All areas within the exterior buulldaries of the Shopping Center which are now or hereafter held for lease or occupation by Lessor or used by other persolls entitled to occupy floor space in the Shopping Center, including, without limiting the gellerality of the foregoing, all automobile parking areas, dri'V'eways, entrances and exits thereto, employee. parking areas, the truck way or ways, loading docks, package pick-up stations, pedestrian sidewalks and ramps, landscaped areas, retaining walls, exterior stairways, first aid stations, comfort stations, bus stops, opened and enclosed courts and malls and other areas and improvements provided by Lessor in or near th,!! Shopping Center for the general use, in common, by tenants, their officers, agents, employees and customers (herein called "Common Areas") shall at all times be subject to the exclusive control and management of Lessor, and Lessor shall have the right, but not the obligation, to construct, maintain and operate Iigllting facilities on all said areas and improvements, from time to time to change the area, level, 10c<Jtion and arrangement of parking areas and other facilities herein above referred to; to restrict parking by tenants, their officers, agents and employees to employee parking areas and to enforce parking charges (by operation of meters or otherwise), with appropriate provisions for free parking ticket validating, or in lieu thereof, to apply the net proceeds from such charges, after deduction of costs applicable thereto, to the reduction of the cost of maintaining the parking facilities. Lessor shall have the right to close all or any portion of the Common Areas; to close temporarily all or any portion of ihe parking areas or facilities; 'to discourage non-customer parking; and to do and perform such other acts in and to said areas and improvements as the>lessor shall determine to be advisable with a view to the improvement of the convenience and use thereof by tenants, their officers. agents, employees and customers. Lessor shall have tile full right and authority to employ all perlionnel and to make all rules and regul<Jlions pertaining to the proper operation and maintenance of the Common Areas. FIFTY-FIFTH: CHANGES TO SHOPPING CENTER AND COMMON AREA: Lessor hereby reserves the rigl1t, at any time, to perform maintenance operations and to make repairs, alterations, or additions to, and to build additional stories on, the building in which the premises are contained and to build adjoining tile same. Lessor also reserves the right to construct other buildings or improvements, including, but not limited to, structures for motor vehicle parking. The Lessee agrees to cooperate with the Lessor, permitting the Lessor to accomplish any such maintenance, repairs, alterations, additions or construction, Tile purpose of the site plan attached hereto as Exhibit A is to show the approximate location over the Leased Premises. The Lessor reserves the right, at any time, to add to or reduce or to relocate the various buildings, automobile parking areas, and other common areas as shown on the site plan. SITE PLAN: The purpose of the site plan attached hereto as Exhibit A is to show the location of the location of the leased premises. Lessor reserves the right at any time to relocate the various buildings, automobile parking areas and other commori areas as shown on said site plan or to build greater or lesser of the area of the building shown on said site plan. The parties acknowledge that the listing or naming on Exllibit A of any other tenant or the description thereof of any kind of business in the shopping center are nol representations by Lessor that such named other tenant or business shall be an occupant of the sllOpping center and such desig'nations appearing upon the site plan shall not be considered part of this lease. Lessor hereby reserves the right at' any tiQ"le io make alterations or additions to any building shown on Exl1ibit A. Lessor also reserves the right to construct other buildings or improvements in the shopping center from time to time and to make alterations thereof or additions thereto. Lessor shall have the right to construct, maintain and operate lighting facilities on all said areas and improvements; from time to time to change the area, level, location and arrangement of parking areas and other facilities hereinabove referred to and to restrict pmking by tenants, their employees, officers and agents to designated employee parking areas. FIFTY-SIXTH: LETTERS AND MARKS IN ADVERTISING: Lessee agrees to use' in its advertising and promotional activities for itsb~siness in the Leased Premises such references to the name of the Shopping Center and such identifying lettering, marks, or symbols refecring to the Shopping Center as Lessor shall specify from lime to lime. Lessee shall include the name of the Shopping Center and its address for the Leased Premises and shall subsCfibe to an listing in the Yellow Pages of the local telephone ' director which shall be printed in bold type, 7 IN WITNESS WHEREOF, the parties hereto have hereunto executed this Instrument for the purpose herein expressed, the day and year above written. Signed, sealed and delivered in the presence of: R.K. ASSOCIATES BY ~, Y;,~ p.-<--</ Lessor / ~essee City BY: BY: As to Lessee Lessee BY: As to Lessee Lessee Date: May 8 1998 8 9P -T3 CITY OF SUNNY ISLES BEACH, FLORIDA MEMORANDUM TO: City Commission FROM: Lynn M. Dannheisser� City Attorney DATE: May 11. 1998 RE: Revised Lease to include space for Police Department Please be advised, after several weeks of negotiations among R.K. Associates (the "Landlord "), the Mayor, City Manager and myself, we have finally agreed on the terms of the lease reflected in Exhibit "A" to this Resolution. Basically, rent will commence on October 1, 1998. (The Landlord agreed to a rent concession until that time.) The base rent for approximately 21,000 square feet shall be 510,500 per month. There will be no operating expenses passed through during our occupancy. Beginning in January, 2004 if the City decides to renew its lease for two successive one year options, rent shall be increased to $ 17,000 per month and subsequently in January, 2005 to $19,000. The private elevator access costs S 1,000 per month for the duration of the lease. There will be a separate, secure area for police vehicle parking which will require a variance so Landlord's parking calculations are not adversely affected. The Landlord shall also assign a specific space in front of our elevator for use to transport suspects and there will be three additional spaces designated for police cars in the front area of the shopping center. The Manager has also demanded our insurance requirements be lowered from five million to one million dollars in liability. The Landlord shall also be responsible for the air conditioning units, roof repairs, among other things, at its expense. LMD:ch cc: James DiPietro, City Manager