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HomeMy WebLinkAboutR-97-0647J-97-660 9/15/97 RESOLUTION NO. 9.7 -- 647 A RESOLUTION APPROVING A SUBLEASE AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE MIAMI SPORTS AND EXIBITION AUTHORITY (MSEA) AND THE GREATER MIAMI CONVENTION AND VISITORS BUREAU FOR A VISITORS CENTER AND ADMINISTRATIVE OFFICES AT THE AVIATION AND VISITORS CENTER ON WATSON ISLAND, PURSUANT TO THE INTERLOCAL AGREEMENT DATED AUGUST 14, 1997 BETWEEN THE CITY OF MIAMI AND MSEA. WHEREAS, on April 25, 1997, the City Commission adopted Resolution No. 96-281, directing the City Manager to negotiate a lease between the City of Miami and the Miami Sports and Exhibition Authority ("MSEA") as the entity to coordinate and develop the Watson Island Aviation and Visitors Center (the "Project"); and WHEREAS, on June 26, 1997, the Commission passed Resolution No. 97-420 approving. the negotiated interlocal agreement with MSEA, thereby conveying a long term lease interest in a parcel of. City owned waterfront property on Watson Island for the Project; and WHEREAS, in accordance with the purpose of said interlocal, MSEA and the Greater Miami Convention and Visitors CI1i COMUSSYON P4z£TZNC; OF SEP 2 3 19971 Resolution No. 97- 647 Bureau (the "Bureau") have subsequently negotiated a sublease agreement which provides for the rights and obligations .of the Bureau with respect to its occupancy, use, maintenance and management of the Visitors Center portion of the Project; and WHEREAS, pursuant to Section 2-1014 of the Code of the City of Miami, MSEA has the power to lease real and personal property subject to the prior approval of the City Commission; and WHEREAS, the City Manager and the Executive Director of MSEA recommend that the City Commission approve said sublease agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are incorporated herein as if fully set forth in this Section. Section 2. The sublease agreement, in a form acceptable to the City Attorney, between the Miami Sports and Exhibition Authority and the Greater Miami Convention and Visitors Bureau (the "Bureau") providing for the rights and obligations of the Bureau with respect to its occupancy, use, maintenance and management of the Visitors Center at its administrative offices at the Watson Island Aviation and Visitors Center is hereby approved. Section 3. This Resolution shall become effective immediately upon its adoption. 2 9-7- 647 PASSED AND ADOPTED this 23rd day of September 1997. ATTES : WALTER J. EMAN, CITY CLERK PREPARED AND APPROVED BY: JULIE 0. BRU ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS �/ $! JINN J ES, III CITY ATT EY W 1874: CSK:JOB 3 91- 647 9, CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission '!ZdFROM: Edwqu City Ma a e DATE SUBJECT • 18 SEP I 6 FILE: Sublease between MESA and Greater Miami Convention and Visitors Bureau REFERENCES: Sublease Agreement ENCLOSURES: for the meeting of 9/23/97 It is respectfully recommended that the City Commission adopt the attached Resolution approving a sublease agreement, in substantially the attached form, between the Miami Sports and Exhibition Authority (MESA) and the Greater Miami Convention and Visitors Bureau (GMCVB) for a visitors center and administrative offices at the Aviation and Visitors Center on Watson Island BACKGROUND The Department of Planning and Development has prepared the attached documentation. On April 25, 1997, the City Commission • adopted Resolution No. 96- 281, directing the City Manager to negotiate a lease between the City of Miami and MESA as the entity to coordinate and develop the Watson Island Aviation and Visitors Center (the "Project"). On June 26, 1997, the Commission passed Resolution No. 97-420 approving the negotiated interlocal agreement with MESA, thereby conveying a long term lease interest in a parcel of City owned waterfront property on Watson Island for the Center. MESA and the Greater Miami 'Convention and Visitors Bureau (GMCVB) have subsequently negotiated the attached sublease agreement which requires approval of the City Commission. The sublease details the rights and responsibilities of the GMCVB relating to occupancy, use, maintenance and management commitment to the Visitors Center. The City Manager and the Executive Director of MESA recommend that said sublease be approved. 97- 647 SUBLEASE AND OPERATING AGREEMENT BETWEEN THE MIAMI SPORTS AND EXHIBITION AUTHORITY GREATER MIAMI CONVENTION AND VISITORS BUREAU E DATED ver. 9/16/97 9'0 - 647 3 TABLE OF CONTENTS ARTICLE I EXHIBITS AND DEFINITIONS Section 1.1 Defined Terms; Singular, Plural and Gender ARTICLE II DESCRIPTION AND TERM Section 2.1 Description of Subleased Premises Section 2.2 Common Areas Section 2.3 Term of Sublease ARTICLE III PURPOSE OF USE AND OCCUPANCY Section 3.1 Use of Building Section 3.2 Continuous Duty to Operate ARTICLE IV BUREAU'S SERVICES Section 4.1 Services ' Section 4.2 Repairs Section 4.3 Cost for Services and Repairs Section 4.4 Subtenants' Services Section 4.5 City and Authority Not Liable for Failure of Utilities ARTICLE V AUTHORITY'S SERVICES Section 5.1 Authority's Maintenance Obligations ARTICLE VI CONSIDERATION Section 6.1 Base Monthly Rent Section 6.2 Bureau's Share of Airport Operating Expenses Section 6.3 Security Deposits Section 6.4 Additional Rent Section 6.5 Interest on Late Payments Section 6.6 Place of Payment ARTICLE VII HAZARDOUS MATERIALS Section 7.1 Handling of Hazardous Materials Section 7.2 Indemnification Section 7.3 Disclosure, Warning and Notice Obligations Section 7.4 Environmental Tests and Audits Section 7.5 Survival of Bureau's Obligations ARTICLE VIII LICENSES; COMPLIANCE WITH LAWS Section 8.1 Licenses and Permits Section 8.2 Compliance with Laws 2 8 10 11 11 11 12 12 13 13 16 17 17 17 18 19 19 20 20 20 20 4 i . 9?- 647 ARTICLE IX ALTERATION OF PREMISES Section 9.1 Change/Alterations 20 Section 9.2 Manner of Construction 21 Section 9.3 Mechanics' Liens 21 Section 9.4 Changes and Additions to Air Transportation Facility 23 ARTICLE X AUTHORITY'S INSPECTION AND RIGHT OF ENTRY Section 10.1 Inspection by Authority 23 Section 10.2 Authority's Right of Entry 24 ARTICLE XI INDEMNIFICATION AND INSURANCE Section 11.1 Indemnification 24 Section 11.2 Insurance 25 Section 11.3 Waiver of Subrogation 27 Section 11.4 No Liability of Authority or City 27 ARTICLE XII DAMAGE AND DESTRUCTION Section 12.1 Destruction of Subleased Premises 28 Section 12.2 Authority's Option to Terminate Lease 28 Section 12.3 Demolition of Building 29 Section 12.4 Insurance Proceeds 29 ARTICLE XIII BUILDING NAME Section 13.1 Name of Building 29 ARTICLE XIV EMINENT DOMAIN Section 14.1 Eminent Domain 30 Section 14.2 Condemnation Awards 31 ARTICLE XV ASSIGNMENTS AND SUBLETTING Section 15.1 Assignment and Subletting of Subleased Premises 31 Section 15.2 Procedure for Transfer 32 Section 15.3 Acceptance of Rent from Transferee 33 Section 15.4 Adjustment to Rents as a Result of a Transfer 33 Section 15.5 No Release of Bureau 34 Section 15.6 Event of Bankruptcy 34 ARTICLE XVI OWNERSHIP OF IMPROVEMENTS Section 16.1 Ownership of Improvements 35 ii 97- 647 5 a ARTICLE XVII SIGNAGE Section 17.1 Signs 36 ARTICLE XVIII RIGHT TO TERMINATE Section 18.1 Right to Terminate 36 Section 18.2 Notice to Terminate Sublease 37 ARTICLE XIX _ DEFAULT PROVISIONS Section 19.1 Events of Bureau's Default 37 Section 19.2 Events of Default - Authority 41 Section 19.3 Mitigation 42 ARTICLE XX ARBITRATION Section 20.1 Arbitration 42 Section 20.2 Procedures 43 ARTICLE XXI NOTICES Section 2 1. 1 Notice 45 ARTICLE XXII QUIET ENJOYMENT Section 22.1 Quiet Enjoyment 46 ARTICLE XXIII ESTOPPEL CERTIFICATES Section 23.1 Estoppel Certificates 46 ARTICLE XXIV REMEDIES CUMULATIVE Section 24.1 Remedies Cumulative 47 Section 24.2 Waiver of Remedies Not to be Inferred 47 ARTICLE XXV SURRENDER AND HOLDING OVER Section 25.1 Surrender at End of Term 47 Section 25.2 Rights Upon Holding Over 48 ARTICLE XXVI MISCELLANEOUS PROVISIONS Section 26.1 Ingress and Egress 48 Section 26.2 Successors and Assigns 48 Section 26.3 Assignability and Binding Effects 49 Section 26.4 Amendments 49 Section 26.5 Award of Agreement 49 Section 26.6 Construction of Agreement 49 Section 26.7 Attorney's Fees and Expenses 49 97-- 647 Section 26.8 Waiver of Jury Trial 49 Section 26.9 Severability 49 Section 26.10 Time of Essence as to Covenants of Sublease 50 Section 26.11 Captions 50 Section 26.12 Conditions and Covenants 50 Section 26.13 Bureau Obligations Survive Termination 50 Section 26.14 Radon 50 Section 26.15 Recording, Documentary Stamps 50 Section 26.16 Duplicate Originals 51 Section 26.17 No Third Party Beneficiaries 51 ARTICLE XXVII AFFIRMATIVE ACTION Section 27.1 Affirmative Action 51 Section 27.2 Nondiscrimination 51 ARTICLE XXVIII ENTIRE AGREEMENT Section 28.1 Entire Agreement 51 iv 97- 647 7 • I-] 8) The Bureau intends to contribute up to three million, one hundred and eighty thousand dollars ($3,180,000) for the Building and the Site as its share of the facility and related appurtenances. In consideration of the foregoing and of the rent, covenants, and agreements hereinafter set forth, the parties do hereby covenant and agree as follows: ARTICUP T EXHIBITS AND DEFINITIONS Section 1.1 Defined Terms; Singular, Plural And Gender. (a) Terms which have initial capital letters and are not otherwise defined in this Sublease shall have the meaning set forth in the Interlocal Agreement. (b) Any word contained in the text of this Sublease shall be read as the singular or the plural, and as the masculine, feminine or neuter gender as may be applicable in the particular context. More specifically, however, for the purposes of this Sublease the following words shall have the meanings attributed to them in this Section: "Additional Rent" shall have the meaning ascribed to it in Section 6.7. "Air Museum" means approximately 2,000 square feet of space located on the first floor of the Building. The actual square footage of the Air Museum to be adjusted upon completion of construction, as calculated by City's architect. RIP-1 6.2. Section 6.2. "Airport Operating Expense Estimate" has the meaning ascribed to it in Section "Airport Operating Expense Rent" has the meaning ascribed to it in Section "Airport Operating Expense. Statement" has the meaning ascribed to it in "Airport Operating Expenses" shall mean any and all costs and expenses paid or incurred by Authority in connection with the operation, maintenance, management and repair of the Air Transportation Facility. By way of illustration but not limitation, Airport 2 8 97- 647 Operating Expenses shall include the following: insurance premiums paid by Authority and (to the extent used) deductibles; water, sewer and all other utility charges (other than with respect to utilities separately metered and paid directly by subtenant or other subtenants); janitorial and all other cleaning services; Impositions, refurbishing and repainting, air conditioning, heating and elevator service; pest control, resurfacing; lighting systems, fire detection and . security services; landscape maintenance, management (fees and/or personnel costs); road, sidewalk, apron, helipad(s), ramp(s) and driveway maintenance; capital replacement, the amortized costs (as reasonably determined by Authority) to repair, maintain, replace and install capital improvements as Authority may in the future install to comply with governmental regulations and rules or undertaken in good faith with a reasonable expectation of reducing operating costs; fees for required licenses and permits, fees, charges and other costs in connection with the management, administration and operation of the Air Transportation Facility; the fair market rental value of any property manager's office at the Air Transportation Facility and costs of legal services (except those incurred directly relating to a particular occupant of the Air Transportation Facility), accounting services, labor, supplies, materials and tools. Airport Operating Expenses shall not include: Authority's income tax or general corporate overhead; depreciation on the building(s) or equipment therein; loan payments; real estate broker's commissions; and advertising and promotional expenditures. "Air Transportation Facility" has the meaning ascribed to it in the Interlocal Agreement. "Authority" has the meaning ascribed to. it in the opening paragraph of this Sublease as well as Authority's successors and/or assigns. "Base Monthly Rent" means that minimum rent to be paid as set forth in Section 6.1. "Building" shall mean the approximately forty-five thousand (45,000) square foot structure to be constructed upon the Site. 3 97- 647 9 • "Bureau's Construction Contribution" means an amount up to three million and one hundred eighty thousand ($3,180,000) that shall be used in determining the Bureau's actual Base Monthly Rent. Said contribution shall be paid to the Authority during the construction period of the Building. Florida. "Business Days" means Monday through Friday excluding legal holidays. "Business Hours" shall mean 7:00 AM to 7:00 PM. "City" means the City of Miami, a municipal corporation of the State of "City's Consultant" shall mean Spillis, Candela & Partners, Inc. as authorized by the City Commission by Resolution 97-537. "Common Areas" means the total of all areas which now or at any time hereafter, based on Authority's sole discretion, are within or part of the Air Transportation Facility and made available for the general nonexclusive use, convenience or benefit of Authority, Bureau and all other subtenants of the Air Transportation Facility and their respective employees and invitees, including, without limitation, all lobbies, entrances, stairs, elevators, escalators, hallways, passageways and other interior public portions of the Air Transportation Facility which are not specifically occupied by the Bureau or by any other subtenant of the Air Transportation Facility and all exterior walkways, landscaped areas, driveways, open space areas, observation deck, landing and takeoff areas, taxiway areas for aircraft, ramp areas, aircraft parking areas and facilities, parking lots and parking facilities within the Air Transportation Facility. "Effective Date" means the date this Sublease Agreement is last signed by the Authority and Bureau. "Event of Bureau's Default" has the meaning ascribed to it in Section 19.1. "Event of Authority's Default" has the meaning ascribed to it in Section 19.2. "Expense Year" means each twelve (12) consecutive month period commencing on the 1" day of Authority's fiscal year falling within the Term, provided that Authority, upon notice to Bureau, may change the Expense Year from time to time to any other twelve (12) 10 4 97- 647 consecutive month period, and, in the event of any such change, the Airport Operating Expense Rent shall be equitably adjusted for any Expense Year involved in any such change. "Fair Market Rent" means the amount that shall be used to determine the Base Monthly Rent as calculated by an independent MAI appraiser. "Hazardous Materials" has the meaning ascribed to it in Section 7.1. "Hazardous Materials Laws" has the meaning ascribed to it in Section 7.1. "Impositions" means all governmental assessments, including assessments imposed by the City, franchise fees, excises, license and permit fees, municipal service fees, fire service fees, levies, charges and taxes, including ad valorem real estate taxes on the Air Transportation Facility, general and special, ordinary and extraordinary, foreseen or unforeseen, or of any kind and nature whatsoever, and which shall or may, during in respect to the Term, be assessed, levied, charged, confirmed, or imposed upon, or become due and payable out of, or become a lien on the Air Transportation Facility, the land and/or improvements thereon, or appurtenances or facilities used in connection therewith. Impositions shall include, without limitation, all ad valorem taxes, personal property taxes, transit taxes, (unless such tax or charge is payable by a Bureau directly), special or extraordinary assessments, government levies,. and all other taxes or other similar charges, if any, which are levied, assessed or imposed upon, or become due and payable in connection with the Subleased Premises, the Air Transportation Facility, the land or appurtenances of facilities used in connection therewith. Impositions shall specifically exclude any rent tax, gross receipts tax, sales or transactions tax, profits tax, income tax, franchise tax, excise tax, gift tax, transfer tax any late payment charge or penalty or any tax against the Air Transportation Facility that is paid by Bureau as a separate charge pursuant to this Sublease. Notwithstanding the foregoing exclusions, if at any time during the Term the present method of taxation or assessment shall be changed so that the whole or any part of taxes, assessments, excises, levies or other charges now assessed, levied, charged, confirmed or imposed upon the Subleased Premises, the Air Transportation Facility the land or 5 97- 647 11 appurtenances or facilities thereto shall be discontinued or reduced and as substitute therefor or in lieu thereof, a tax, assessment excise, levy or other charge shall be assessed, levied, charged, confirmed or imposed, whether wholly or partially as a special assessment or otherwise on rents, income, profits, sales or gross received derived from the Air Transportation Facility, then the substitute tax, assessment, excise, levy or other charge shall be deemed included within the term Impositions to the extent that such substitute tax would be payable if the Subleased Premises were it the only property of Authority subject to such tax. "Legal Requirements" or "Applicable Law" means applicable laws., Florida Statutes, codes, City and Dade County ordinances, orders, judgments, decrees and injunctions from courts having jurisdiction over the Air Transportation Facility, rules, and requirements of State and local boards and agencies with jurisdiction over the Air Transportation Facility,. now existing or hereafter enacted, adopted, foreseen and unforeseen, ordinary and extraordinary, which may be applicable to the Air Transportation Facility or any part of it. "Offices" shall mean the approximately 25,000 square feet of office space used exclusively by the Bureau. The actual square footage of the Offices to be calculated by City's architect. The Offices shall include all lobby space, hallways, restrooms, vertical penetrations for mechanical, utilities, stairs and elevators on those floor(s) where the Offices are the only use. "Parties" means the Authority and Bureau. "Person" means any natural person, trust, firm, partnership, corporation, joint venture, association, or any other legal or business entity investment enterprise. "Personal Property" means all property owned and used by the Bureau or any sub -subtenant or Transferee of the Bureau, in connection with and located upon the Subleased Premises, subject to rights of any secured party or title retention agreement of a third party. "Possession Date" means the date in which (a) Bureau takes possession or commences use of the Subleased Premises; or (b) thirty (30) days after the date Bureau shall have received Authority's authorization to enter the Subleased Area, whichever occurs first. 6 12 97- 647 "Prime Interest Rate" means that rate of interest charged by First Union National Bank of Florida (or if this bank is not in existence or making loans at the Prime Interest Rate, then the Prime Interest Rate shall be that rate so charged by the bank located in Dade County having the largest net worth at the applicable time) from time to time on ninety (90) day commercial loans to its most creditworthy corporate borrowers. "Rent" shall mean the Base Monthly Rent, Airport Operating Expense Rent, Additional Rent and any other amounts Bureau is required to pay under this Sublease. "Section", "subsection", "paragraph", "subparagraph", "clause", or "subclause" followed by a number or letter means the section, subsection, paragraph, subparagraph, clause or subclause of this Sublease Agreement so designated. "Site" shall mean the approximate one (1) acre parcel of real property located within the Air Transportation Facility located within Watson Island Park in the City of Miami, Florida, on which the Building will be constructed. "Site Operating Expenses" shall mean the actual cost incurred by the Bureau with respect to providing the maintenance, services and repairs outlined in Sections 4.1 and 4.2. "Sublease Date" means the date this Sublease is last signed by the Executive Director behalf of the Authority and Bureau, after approval by the City of Miami Commission. "Subleased Premises" shall mean the Visitors Center, Air Museum (if the option provided in Section 2.1 is exercised) and Offices occupied exclusively by the Bureau. "Sublease Year" shall mean any period of time consisting of Twelve (12) consecutive calendar months commencing on the Possession Date and each anniversary thereafter during the Term . "Sub -sublease" means any sublease (excluding this Sublease), sub -sublease, license, concession or other agreement by which Bureau or any person or other entity claiming under Bureau (including, without limitation, a sub -subtenant or sublicensee) demises, leases,. 7 97- 647 13 subleases, licenses or sublicenses to or permits the use or occupancy by another person or entity of any part of the Subleased Premises. "Sub -subtenant" means any person, firm, corporation or other legal entity using or occupying or entitled to use or occupy any part of the Subleased Premises under a Sub - Sublease. "Term" has the meaning ascribed to it in Section 2.3. "Visitors Center" shall mean the approximately 4,000 square feet located within the first floor of the building occupied exclusively by the Bureau as a visitors information center. The actual square footage of the Visitors Center to be calculated by City's architect. ARTYCUR. TT DESCRIPTION AND TERM Section 2.1 Description of Subleased Premises. The Authority hereby subleases to Bureau, and Bureau hereby subleases from Authority, the Subleased Premises to be located within the Air Transportation Facility located within Watson Island Park in the City of Miami, Florida. The actual square footage of the Subleased Premises to be adjusted upon completion of construction, as calculated by the City's architect, which calculations shall be attached and become a part of this Sublease upon their availability. To the extent space is available, the Bureau shall have the option of subleasing the Air Museum. To exercise this option, Bureau must provide Authority with written notice - of its intent to exercise this option no later than six months from the Effective Date of this Sublease Agreement. In the event this option is exercised, the Subleased Premises shall be deemed to include the Air Museum. Authority shall transfer possession of the Subleased Premises to the Bureau on the Possession Date. Authority shall further make available to Bureau up to thirty (30) parking spaces, as space permits, to be located immediately adjacent to the Subleased Premises for its exclusive use during normal Business Hours, Monday through Friday. s 14 97- 647 • M • Section 2.2 Common Areas. Bureau shall have the nonexclusive right (in common with other subtenants of the Air Transportation Facility) to use the Common Areas within the Air Transportation Facility for the purposes intended, subject to such rules and regulations as Authority may establish from time to time. Section 2.3 Term of Sublease This Sublease shall be for a term of thirty (30) years, (the "Term"), commencing on the Possession Date and ending on the date that is thirty (30) years thereafter, unless terminated at an earlier date pursuant to the terms of this Sublease. Within thirty (30) days after the Possession Date, the Authority and Bureau, upon request of either party, shall execute one or more memoranda in such form as will enable them to be recorded among the Public Records of Dade County, setting forth the beginning and termination dates of the Term. ARTICLE III PURPOSE OF USE AND OCCUPANCY Section 3.1 Use of Building. The Bureau shall use and operate the Subleased Premises for a Regional Visitors' Center, air museum (if the option in Section 2.1 is exercised) and related offices, and for all related and ancillary uses in connection therewith. The Subleased Premises shall not be used for any other purpose without the prior written consent of the Authority, which consent may be withheld in the Authority's sole discretion. This Sublease and all rights of Bureau hereunder shall, at the option of the Authority, cease and terminate upon discontinuance of the stated use and operation of the Subleased Premises, after having first been given written notice by Authority of the violation and/or default as provided in Section 19.1 and after having first been given the opportunity to cure said violation within the time frame set forth in said Section 19.1. Section 3.2 Continuous Duty to Operate. Except where the Subleased Premises is rendered untenantable by reason of fire or other casualty, Bureau shall at all times during the term of this Sublease (i) occupy the Subleased Premises upon the Possession Date; (ii) shall thereafter continuously conduct operations in the Subleased Premises in accordance with the 9 97- 647 15 • E terms of this Sublease and (iii) keep the Subleased Premises open for operation during hours usual for this type of facility. If the Bureau fails or refuses to satisfy any of the foregoing requirements in items (i) through (iii), then in such event Authority shall have the right, in addition to all remedies herein provided for Default, to collect, and Bureau shall be obligated to pay, as Additional Rent, one hundred dollars and 00/ 100 ($100.00) for each day that Bureau does not comply with said requirements. ARTICLE IV BUREAU'S SERVICES Section 4.1 Services. Bureau shall make available, at.its sole cost and expense, the following services to the Site and Building: (a) heating, ventilation and air conditioning required in Authority's judgment for the comfortable use and occupation of the Building; (b) water and sewage facilities; (c) pest control; (d) interior and exterior landscaping; (e) exterior grounds maintenance and cleanup seven (7) days a week; (f) security as is required for similar terminal facilities; (g) electric current for normal use and light, seven days a week, 24 hours aday; (h) janitorial services including handyman services which shall be able to perform minor plumbing repairs, seven days a week, as are normal and usual in comparable Class A Buildings and terminal facilities; (i) elevator service (if appropriate), seven (7) days a week, 24 hours a day; 6) all standard incandescent and florescent bulb replacement, including ballast replacement, in the Building and on the Site; The above level of services may be modified by the Bureau, as approved by the Authority, based on the actual demands of the Building and Site. to 16 9 '7 - 647 Section 4.2 Repairs. Bureau shall, at its sole cost and expense, provide all maintenance, including preventive maintenance, repairs and replacements, as necessary, to the Site and Building including, but not limited to, the pavement, driveways, lighting, Building interior walls, ceilings, plumbing, heating, air conditioning, electrical and life safety systems installed or furnished by the Authority. All maintenance, repairs and replacements shall be performed in a manner and level of service satisfactory to the Authority. Section 4.3 Cost for Services and Repairs. Notwithstanding the above provision of services, maintenance and repairs by the Bureau, at its sole cost, any and all subtenants utilizing the Building, including the Bureau, shall pay a proportionate share of the Site and Building operating expenses to cover the actual costs of the services and repairs referred to in Sections 4.1 and 4.2 hereof (collectively the "Site Operating Expenses"). Such proportionate share shall be computed based upon the square footage rented by the respective subtenant divided by the total rentable square footage of the Building. In the event any injury or damage to the Building or the Site is caused by the negligence or intentional acts of the Bureau or subtenant, their employees, agents, contractors, licensees or invitees, the parry so responsible for such injury or damage shall, at its sole cost, pay for such repair and/or replacement required. The manner of reimbursement to the Bureau of those costs of providing the services outlined in Sections 4.1 and 4.2 beyond the Bureau's proportionate share shall be as more particularly set forth in the agreements between the, Authority and the respective subtenant. Section 4.4 Subtenants' Services Each subtenant, including the Bureau, shall be required to furnish and pay, at subtenant's sole expense, all other utilities (including, but not limited to, electric, telephone and cable television service, if available and hook-up and connection charges) and other services which subtenant requires with respect to its use of the Building. Each subtenant shall be required, at its sole cost and expense, to keep and maintain in good order, condition and repair at all times the Building area it utilizes including, without limitation, nonstructural, interior portions, systems and equipment, floor coverings, decoration (e.g., carpeting, painting, wall coverings, drapes and other window treatments, refinishing, II 97- 647 17 etc.), fixtures and equipment therein, excluding only those repair obligations assumed by the Bureau in Section 4.2. Section 4.5 City and Authority Not Liable for Failure of Utilities. City and Authority shall not be liable (other than for their own or any of their agents, servants and employees gross negligence) for any failure of water supply, sewer, gas or electric current, or for any injury or damage to any Person or property caused by or resulting from any water, sewer, gas or electricity which may leak or flow from the water, sewer or gas mains on to any part of the Subleased Premises or the Building. ARTif T.F V AUTHORITY'S SERVICES Section 5.1 Authority's Maintenance Obligations. Except as provided for in Article IV of this Sublease, the Authority shall repair and maintain the Common Areas, the public areas, and any structural portions of any buildings owned by City in the Airport Transportation Facility, including the exterior walls, underflooring and roof, the cost of which shall be included in the Airport Operating Expenses, unless such maintenance and repair becomes necessary in whole or in part due to: (i) the misuse, act, neglect, fault or omission of Bureau, its employees, agents, customers, licensees, or invitees in or, about the Air Transportation Facility; (ii) any damage occasioned by the failure of Bureau to perform or comply with any terms, conditions, or covenants of this Sublease; (iii) any structural alterations or improvements required by Bureau's use and occupancy of the Subleased Premises, in which case the Bureau shall pay to Authority the entire cost of such maintenance, repair or alteration. The Base Monthly Rent, Airport Operating Expense Rent and any Additional Rent shall not be reduced and Authority shall not be liable under any circumstances for a loss . of, or injury to, property, loss of profits, or for injury to or interference with Bureau's business arising from or in connection with the making of or Authority's failure to make any repairs, maintenance, alterations or improvements in or to any portion of the Air Transportation Facility or in or to fixtures, appurtenances and equipment therein. Bureau 18 12 97- 647 hereby waives and releases its right to perform repairs at Authority's expense under any law, statute, or ordinance now or hereafter in effect in the State in which the Air Transportation Facility is located. ARTICLE VI CONSIDERATION Section 6.1 Base Monthly Rent. From and after the Possession Date, Bureau shall pay to Authority, in advance, on the first day of each and every calendar month during the Term, the Base Monthly Rent. The Base Monthly Rent for the Subleased Premises as of the Possession Date, which Bureau hereby agrees to pay in advance to Authority and Authority hereby • agrees to accept, shall be calculated on the basis of the Fair Market Rent as determined by a real estate appraisal as prepared by an independent MAI appraiser retained by the Authority. The establishment of the Fair Market Rent determination shall take into account, in addition to the income approach, cost approach and market data approach, the value of the Bureaus' Construction Contribution which shall be used as a credit or a reduction in determining the actual Base Monthly Rent. The Base Monthly Rent shall be fixed for the Term of this Sublease. Bureau shall pay to Authority the amount of any sales or similar tax imposed by the State of Florida, if applicable, or any subdivision thereon on the Rents and other charges payable by Bureau under this Sublease. Such payments on account of sales or similar taxes shall be paid together with the corresponding amounts due under this Sublease and the obligation to pay same shall survive the expiration or earlier termination of this Sublease. Section 6.2 Bureau's Share of Airport Operating Expenses. (a) Bureau's Share. In addition to the payment of Base Monthly Rent, Bureau shall also pay to Authority Bureau's pro rata share of the annual Airport Operating Expenses ("Airport Operating Expense Rent"). The Bureau's pro rata share of the annual Airport Operating Expenses shall be as determined by Ricondo and Associates, the City's 13 97 647 19 aviation consultant. The Airport Operating Expense Rent calculated for any partial Sublease Year shall be equitably prorated based upon a 365-day year. (b) Statement of Estimated Airport Operating Expenses. Within thirty (30) days prior to the commencement of each Expense Year, Authority shall give Bureau an estimated yearly expense statement (the "Airport Operating Expense Estimate") which shall set forth Authority's reasonable estimate of the total Airport Operating Expenses for the then current Expense Year. Each Airport Operating Expense Estimate shall be divided into twelve (12) equal monthly installments. Bureau shall pay to Authority such monthly installment of Airport Operating Expense Rent with each monthly payment of Base Monthly Rent for the Subleased Premises. If at any tune during any Expense Year it shall appear that Authority has underestimated Bureau's pro rata share of the annual Airport Operating Expenses for such Expense Year, Authority may re -estimate Bureau's pro rata share of, Airport Operating Expenses and may bill Bureau for any deficiency which may have accrued during said Expense Year and thereafter the monthly installment payable by Bureau shall be adjusted to reflect the re -estimated amount of Airport Operating Expense Rent due. In the event the estimated amount of Airport Operating Expense Rent has not yet been determined for any Expense Year, Bureau shall pay the monthly installment in the estimated amount determined for the preceding Expense Year until the estimate for the current Expense Year has been provided to Bureau. At such time as the estimate for the current Expense Year is received, Bureau shall then pay any shortfall for the preceding months of the Expense Year and shall, thereafter, make the monthly installment payment in accordance with the current estimate. In the event the sums of estimated Airport Operating Expense Rent actually paid for the preceding months of the Expense Year exceeds the estimated amount of Airport Operating Expense Rent due, the difference shall be applied as a credit to future Airport Operating Expense Rent payments due to Authority. Any delay by Authority in delivering the Airport Operating Expense Estimate shall not be deemed a waiver of the right of Authority to collect the Airport Operating Expense Rent. 20 14 97- 647 (c) Actual Airport Operating Expenses. As soon as reasonably possible following the end of each Expense Year, Authority shall determine and provide to Bureau a statement ("Airport Operating Expense Statement") setting forth the amount of Airport Operating Expenses actually incurred and the amount of Airport Operating Expense Rent actually payable by Bureau with respect to such Expense Year. In the event the amount of such Airport Operating Expense Rent exceeds the sum of the monthly installments actually paid by Bureau for such Expense Year, Bureau shall pay to Authority, within thirty (30) days following receipt of the actual Airport Operating Expense Statement, the difference. In the event the sum of such installments exceeds the amount of Airport Operating Expense Rent actually due and owing, the difference shall be applied as a credit to future Airport Operating Expense Rent payable by Bureau. If the Term has expired and Bureau has vacated the Subleased Premises, .when the final determination is made and if amounts are owed to Authority, Bureau shall, within thirty (30) days after receipt of notice from Authority, pay such excess to Authority and if Bureau has overpaid, Authority will, within thirty (30) days after such determination, refund such excess to Bureau provided Bureau's vacation of the Subleased Premises was not as a result of a Default. The provisions of this paragraph shall survive the expiration or earlier termination of the Term. (d) Audit Rights. In the event the Bureau disputes Authority's determinations set forth in the Airport Operating Expense Statement and delivers written notice of such dispute within thirty (30) days of receipt of the Airport Operating. Expense Statement, Bureau shall have the right, at its sole cost and expense, to conduct an audit by a certified public accountant . acceptable to Authority of Authority's records relating to the Airport Operating Expense Statement disputed. Such audit shall be conducted at a time and place acceptable to Authority and shall be limited in scope to the Expense Year referenced in the Airport Operating Expense Statement disputed. All records shall remain in the possession of Authority. Bureau may purchase copies of said records at such cost is reasonable to cover the cost of said reproduction. In the event such audit has been performed by a certified public accountant acceptable to the Authority and shows a discrepancy in the amounts charged to 15 9e— 647 21 Bureau under the Airport Operating Expense Statement, Bureau shall, in the event of overpayment, receive a credit against the next installment(s) of Airport Operating Expense Rent payable by Bureau to Authority, or in the event of underpayment, Bureau shall pay the difference to Authority within thirty (30) days following receipt of the audit report. Section 6.3 Security Deposits. In addition to the Rent as described in this Article, on or before the Possession Date, the Bureau shall deposit an amount equal to six months Base Monthly Rent as a security deposit (the "Security Deposit".). The Security Deposit shall be placed by the Authority in an interest bearing account with all interest earned thereon being credited to Bureau, subject to a default by Bureau, with said interest earned remaining in said escrow account until such time as the Security Deposit is returned to Bureau as outlined below. The Security Deposit will be segregated in an interest bearing escrow account and not commingled with the Authority's general funds. The Security Deposit shall be considered as security for the payment of all of Bureau's obligations, covenants and agreements under this Sublease. Within thirty (30) days after (1) either this Sublease expires or upon the earlier termination of this Sublease (whichever applies), and (2) Bureau has delivered to Authority possession of the entire Subleased Premises in the same condition or better than existed on the Possession Date, ordinary. wear and tear excepted, Authority shall (provided that the Bureau is not in default under the terms of this Sublease) return the Security Deposit to the Bureau less any portion that the Authority shall have used to make good any default of Bureau. In the event of any such default by the Bureau, Authority shall have the right, but shall not be obligated, to apply all or any portion of the Security Deposit plus accrued interest to cure the default, in which event the Bureau shall be obligated to deposit with the Authority the amount necessary to restore the Security Deposit to the amount in effect prior to the deduction. The Security Deposit shall not be deemed liquidated damages and application of the Security Deposit to reduce Authority's damages, shall not preclude Authority from recovering from Bureau all additional damages incurred by Authority. zz 16 97- 64'7 In the event of a sale or transfer of Authority's interest in the Subleased Premises, Authority shall have the right to transfer the Security Deposit to such transferee and thereafter Authority shall be released from all liability relating to the return of the Security Deposit plus accrued interest, and Bureau shall look to such transferee for the return of the Security Deposit. Section 6.4 Additional Rent. In addition to the Base Monthly Rent and Airport Operating Expense Rent under Sections 6.1 and 6.2, and all other payments or charges payable by Bureau, however denoted, are called "Additional Rent". Unless this Sublease provides otherwise, all Additional Rent shall be paid with the next installment of the Base Monthly Rent. Section 6.5 Interest on Late Payments. Any payment made by Bureau for any rental, fee or charge as required to be paid under the provisions of this Sublease, which is not received by Authority within ten (10) days after same shall become due, shall be subject to interest at the Prime Interest Rate, or such other rate as specified as the general interest rate on obligations in Florida by Chapter 687, Florida Statutes, whichever is higher, from the date such payment is due until such time as the payment is actually received by the Authority. Section 6.6 Place of Payment. Payment of the Base Monthly Rent, Airport Operating Expense Rent, Additional Rent and all other charges deemed to be Rent under this Sublease shall be without prior notice, deduction, offset or demand, shall be in lawful money of the United States of America and shall be made at the address set forth for Authority or such other party or such other address as may be designated by Authority from time to time. If Authority shall at any time or times accept Rent after it shall become due and payable, such acceptance shall not excuse delay upon subsequent occasions, or constitute or be construed as a waiver of any or all of Authority's rights hereunder. 17 97 - 647 23 ARTICLE VII HAZARDOUS MATERIALS Section 7.1 Handling of Hazardous Materials. Bureau shall, at its sole cost and expense, at all times and in all respects comply with all federal, state and local laws, statutes, ordinances and regulations, rules, rulings, policies, orders and administrative actions and orders ("Hazardous Materials Laws"), including, without limitation, any Hazardous Materials Laws relating to industrial hygiene, environmental protection or the use, analysis, generation, storage, disposal or transportation of any fuel, oils, flammable explosives, asbestos, urea formaldehyde, radioactive materials or waste, infectious waste, or other hazardous, toxic, contaminated or polluting materials, substances or wastes, including, without limitation, any "Hazardous Substances", "Hazardous Wastes", "Hazardous Materials" or "Toxic Substances", under any such laws, ordinances or regulations (collectively "Hazardous Materials"). Bureau shall, at its sole cost and expense, procure, maintain in effect and comply with all conditions of any and all permits, licenses and other governmental and regulatory approvals relating to the presence of Hazardous Materials within, on, under or about the Subleased Premises required for Bureau's use of any Hazardous Materials in or about the Subleased Premises in conformity with all applicable Hazardous Materials Laws and prudent industry practices regarding management of such Hazardous Materials. Authority recognizes and agrees that Bureau may use materials in normal quantities that are applicable to the use of the Subleased Premises for the purposes stated herein and that such use by Bureau shall not be deemed a violation of this Section, so long as the levels are not in violation of any Hazardous Materials Laws. Bureau shall, at its sole cost and expense, be responsible for performing any removal, remediation, cleanup or restoration required as a result of a release of Hazardous Materials in or about the Subleased Premises, caused by the placement of Hazardous Materials in or about the Subleased Premises, or used by Bureau or at Bureau's direction or by Bureau's failure to comply with any Hazardous Materials Laws. 18 24 97- 647 Upon termination or expiration of the Sublease, Bureau shall, at its sole cost and expense, cause all Hazardous Materials, including their storage devices, placed in or about the Subleased Premises by Bureau or its employees, members, agents or guests or at Bureau's direction to be removed from the Subleased Premises and transported for use, storage or disposal in accordance and compliance with all applicable Hazardous Materials Laws. Authority acknowledges that it is not the intent of this Article VII to prohibit Bureau from operating the Subleased Premises for the use described in Section 3.1. Bureau may operate according to the custom of the industry so long as the use or presence of Hazardous Materials is strictly and properly monitored according to all applicable governmental requirements. Section 7.2 indemnification. Bureau shall indemnify, protect, defend and hold City and Authority free and harmless from and against any and all claims, liabilities, penalties, forfeitures, losses and expenses (including attorneys' fees) or death of or injury to any person or damage to any property whatsoever, arising from or caused in whole or in part, directly or indirectly, by the presence in or about the Subleased Premises of any Hazardous Materials placed in or about the Subleased Premises or used by -Bureau or at Bureau's direction or by Bureau's failure to comply with any Hazardous Materials Law or in connection with any removal, remediation, cleanup, restoration and materials required hereunder to return the Subleased Premises and any other property of whatever nature to their condition existing prior to the appearance of the Hazardous Materials. Section 7.3 Disclosure, Warning and Notice Obligations. Bureau shall comply with all laws, ordinances and regulations in the State of Florida regarding the disclosure of the presence or danger of Hazardous Materials. Bureau acknowledges and agrees that all reporting and warning obligations required under the Hazardous Materials Laws are the sole responsibility of Bureau, whether or not such Hazardous Materials Laws permit or require Authority to provide such reporting or warning, and Bureau shall be solely responsible for complying with Hazardous Materials Laws regarding the disclosure of, the presence or danger of Hazardous Materials. Bureau shall immediately notify Authority, in writing, of any. complaints, notices, warning, reports or asserted violations of which Bureau becomes aware 19 97- 647 25 relating to Hazardous Materials on or about the Subleased Premises. Bureau shall also immediately notify Authority if Bureau knows or has reason to believe a complaint, notice, warning, report or asserted violation will be released on or about the Subleased Premises. Section 7.4 Environmental Tests and Audits. Bureau shall not perform or cause to be performed, any Hazardous Materials surveys, studies, reports or inspections, relating to the Subleased Premises without obtaining Authority's advance written consent, which consent will not be unreasonably denied. At any time during the Term, Authority shall have the right to enter upon the Subleased Premises in order to conduct appropriate tests to establish whether the Subleased Premises is in compliance with all applicable Hazardous Materials Laws. Section 7.5 Survival of Bureau's Obligations. The respective rights and obligations of Authority and Bureau under this Article VII shall survive the expiration or termination of this Sublease. ARTICLE VIH LICENSES; COMPLIANCE WITH LAWS Section 8.1 Licenses and Permits. The Bureau shall, at Bureau's sole cost and expense, obtain any and all licenses and permits necessary and in connection with Bureau's use and occupancy of the Subleased Premises and its maintenance of the Building and Site. Section 8.2 Compliance with Laws. Bureau accepts this Sublease and hereby acknowledges that Bureau's compliance with all Applicable Laws, ordinances and codes of - federal, state and local governments, as they may apply to this Sublease, including but not limited to building codes and zoning restrictions, is a condition of this Sublease and Bureau shall comply therewith as the same presently exist and as they may be amended hereafter. ARTICLE IX ALTERATION OF PREMISES Section 9.1 Change/Alterations. Except for purposes of providing services and repairs as outlined in Sections 4.1 and 4.2, the Bureau shall not make any alterations, 26 20 97- 647 additions, and changes, including, without limitation, installing or causing to be installed any trade fixtures, exterior signs, exterior machinery, floor coverings, interior or exterior lighting, plumbing fixtures, shades or awnings (collectively "Alterations") in and to the Subleased Premises or any part thereof expressly required by this Sublease or any part thereof without the prior written consent of Authority, which consent may be withheld in Authority's sole discretion. Any construction undertaken in or to the Subleased Premises shall be performed in accordance with this Article and the other obligations of this Sublease. Section 9.2 Manner of Construction. Authority may impose, as a condition of its consent to all Alterations or repairs on or about the Subleased Premises, such requirements as Authority, in its sole discretion, may deem desirable, including, but not limited to, the requirement that Bureau obtain bonds'and Builder's Risk Insurance. Bureau shall construct such Alterations or repairs in conformance with any and all applicable rules and regulations of any Federal, State, County or municipal code or ordinance and pursuant to a valid building permit, issued by the local jurisdiction in which the Subleased Premises is located. In any event, a licensed contractor shall perform all mechanical, electrical, plumbing, air conditioning, permanent partition and ceiling tile work, and such work shall be performed at Bureau's sole cost. All work, with respect to any Alterations or repairs, must be done in a good and workmanlike manner and diligently prosecuted to completion. Upon completion of any Alterations, Bureau agrees to deliver to Authority a copy of the "as built" drawings of the Alterations, if the Alterations would customarily generate "as builts" and record any necessary notices to evidence completion as would be customary in the State where the Subleased Premises is located. Any such Alterations shall be performed and done strictly in accordance with the laws and ordinances relating thereto. In performing the work of any such Alterations, Bureau shall have the work performed in such manner as not to obstruct the access to the Common Areas and Air Transportation Facility or to any subtenant, invitee or licensee of the Air Transportation Facility. Section 9.3 Mechanics' Liens. The Bureau shall not knowingly suffer or permit any mechanics' liens to be filed against the title to the Subleased Premises, the Building, the Site 21 97- 647 27 or the Air Transportation Facility, nor against the Bureau's interest in the property, nor against any Alteration by reason of work, labor, services or materials supplied to the Bureau or anyone having a right to possession of the Subleased Premises, the Building, the Site or the Air Transportation Facility as a result of an agreement with or the consent of Bureau. Nothing in this Sublease shall be construed as constituting the consent or request of the Authority, expressed or implied, by inference or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials for any specific Alteration, or repair of or to the Subleased Premises, the Building or the Site nor as giving the Bureau the right, power or authority to contract for or permit the rendering of any services of the furnishing of any materials that would give rise to the filing of any mechanics liens against the Authority's interest in the Subleased Premises, the Building, the Site or the Air Transportation Facility. If any mechanics' lien shall at any time be filed against the Subleased Premises, the Building, the Site or the Air Transportation Facility, the Bureau shall cause it to be discharged of record within thirty (30) days after the date the Bureau has knowledge of its filing. If the Bureau shall fail to discharge a mechanics' lien within that period, then in addition to any other right or remedy, the Authority may, but shall not be obligated to, discharge the lien either by paying the amount claimed to be due or by procuring the discharge of the lien by deposit in court of bonding, or in the event the Authority shall be entitled, if it so elects, to compel the prosecution of any action for the foreclosure of the mechanics' lien by the lienor and to pay the amount of the judgment, if any, in favor of the lienor with interest, costs and allowances with the understanding that all amounts paid by the Authority shall constitute Additional Rent due and payable under this Sublease and shall be repaid to the Authority by the Bureau immediately upon rendition of any invoice or bill by the Authority. The Bureau shall not be required to pay or discharge any mechanics' lien so long as the Bureau shall in good faith proceed to contest the lien by appropriate proceedings and if the Bureau shall have given notice in writing to the Authority of its intention to contest the validity of the lien and shall furnish and keep in effect a surety bond of a responsible and substantial surety company reasonably acceptable to Authority or other security reasonably 22 97- 647 satisfactory to Authority in an amount sufficient to pay one hundred ten percent of the amount of the contested lien claim with all interest on it and costs and expenses, including reasonable attorneys' fees to be incurred in connection with it. Section 9.4 Changes and Additions to Air Transportation Facility. Authority reserves the right at any time and from time to time (a) to make or permit changes or revisions in its plan for the Air Transportation Facility including additions to, subtractions from, rearrangements of, alterations of, modifications of or supplements to the building areas, walkways, parking areas, driveways or other Common Areas, (b) to construct other buildings or improvements in the Air Transportation Facility and to make alterations thereof or additions thereto and to build additional stories on any such building or buildings and to build adjoining same, (c) to make or permit changes or revisions in the Air Transportation Facility, including additions thereto, and to convey all or portions of the Air Transportation Facility to others for the purpose of constructing thereon other buildings or improvements, including additions thereto and alterations thereof and (d) to change location, size, content and design of any signage for the Air Transportation Facility and no such change shall entitle Bureau to any abatement of Rent. Notwithstanding the rights of the Authority above, in the event the change or addition is to the Subleased Premises or the Building, the Bureau shall first consent to such change or addition, which consent shall not be unreasonably withheld. Bureau or Authority's costs of operation and maintenance of the Building, the Site or Airport Transportation Facility, respectively, as such facilities may be modified pursuant to this Section (including, without limitation, all charges for janitorial services, water, sewer, electricity, telephone and the repair costs for the changes) shall be a part of the Site Operating Expenses or Airport Operating_ Expenses, as appropriate. ARTICLE X AUTHORITY'S INSPECTION AND RIGHT OF ENTRY Section 10.1 Inspection by Authority. Authority shall have the authority to make periodic reasonable inspections of all the Subleased Premises and improvements thereof, 23 97- 647 29 during normal working hours to determine if such are being maintained in a neat and orderly condition. Such periodic inspections may also be made at the ,Authority's discretion to determine whether Bureau is operating in compliance with the terms and provisions of this Sublease. Section 10.2 Authority's Right of Entry. Bureau agrees to permit Authority to enter upon the Subleased Premises at all reasonable times, for any purpose Authority deems necessary to, incident to, or connected with. the performance of Authority's duties and obligations hereunder or in the exercise of its rights and functions. Authority and its authorized representative shall have at all times access to the Subleased Premises. Authority will maintain a complete set of keys to the Subleased Premises. ARTICLE XI INDENINIFICATION AND INSURANCE Section 11.1 Indemnification. (a) Indemnification by Bureau. Bureau shall indemnify, protect, defend and hold harmless the Authority and the City, their officials and employees, from and against any and all claims, suits, actions, damages or causes of action of whatever nature arising out of the use or operation of the Subleased Premises, whether such claim shall be made by an employee or member of Bureau, an employee of the Authority, an employee of the City, or by any third party, and whether it relates to injury to persons (including death) or damage to property and whether it is alleged that the Authority or the City, or their employees or officials were negligent. Bureau shall, at its own cost and expense, pay and satisfy all costs related to any orders, judgments or decrees which may be entered thereon, and from and against all costs, attorneys' fees, expenses and liabilities incurred in and about the defense of any such claims and the investigation thereof. Bureau shall further indemnify, defend, protect and hold Authority and City harmless from and against any and all claims arising from any breach or default in performance of any obligation of Bureau's part to be performed under the terms of this Sublease, or arising from any act, neglect, fault or omission of Bureau, its 24 30 97- 647 members, agents, contractors, employees and servants and from and against all costs, attorneys' fees, expenses and liability incurred in connection with such claim or any action or proceeding brought thereon. In case any action or proceeding shall be brought against Authority and/or City by reason of any claim, Bureau upon notice from Authority or City shall defend the same at Bureau's expense by counsel approved in writing by Authority and City. Authority and City reserve the right to defend themselves. Bureau shall immediately notify Authority and City, in writing, of any claim or action filed, of whatever nature, arising out of the use or operation of the Subleased Premises by Bureau, its members, agents, contractors, employees or servants. Bureau shall also immediately notify Authority and City if Bureau knows or has reason to believe a claim or action will be filed, of whatever nature, arising out of the use or operation of the Subleased Premises by Bureau, its members, agents, contractors, employees or servants. Section 11.2 Insurance. Bureau, at its sole cost and expense, shall obtain and maintain in full force and effect at all times throughout the period of this Sublease and through any periods of extensions, the following insurance: (a) Commercial General Liability insurance on a comprehensive general liability coverage form, or its equivalent, including contractual liability, products and completed operations, personal injury, and premises and operations coverages against all claims, demands or actions, bodily injury, personal injury, death or property damage occurring in, on or about the Subleased Premises with such limits as may be reasonably requested by the Authority from time to time but not less than $1,000,000 per occurrence combined single limit for bodily injury and property damage. The Authority and City shall be named as Additional Insured on the policy or policies of insurance. (b) "All Risk" property insurance coverage against loss or damage by fire, windstorm, flood with such endorsement for extended coverage, vandalism, malicious mischief, water damage to contents, sprinkler leakage and special coverage, insuring one hundred percent (100%) of the replacement cost of the Bureau's alterations, improvements, fixtures, equipment, furniture, personal property, trade fixtures and floor coverings in and 25 97- 647 31 about the Subleased Premises. The City, Authority and Bureau shall be named as Loss Payees. (c) Automobile liability insurance covering all owned, non -owned and hired vehicles used in conjunction with operations covered by this agreement. The policy or policies of insurance shall contain such limits as may be reasonably requested by the Authority from time to time but not less than $300,000 for bodily injury and property damage. The requirements of this provision may be waived upon submission of a written statement that no automobiles are used to conduct business. (d) Worker's Compensation in the form and amounts required by State law. (f) The Authority reserves the right to amend the insurance requirements by the issuance of a notice in writing to Bureau. The Bureau shall provideany other insurance or security reasonably required by the Authority. (g) The policy or policies of insurance required shall be so written that the policy or policies may not be canceled or materially changed without thirty (30) days advance written notice to Authority. Said notice should be delivered to the address indicated herein for Authority or to such other address as may be designated by Authority from time to time. (h) A current Evidence of Insurance and Policy of Insurance evidencing the aforesaid required insurance coverage shall be supplied to the Authority on or before the Possession Date and a new Evidence and Policy shall be supplied at least twenty (20) days prior to the expiration of each such policy. Insurance policies required above shall be issued by companies authorized to do business under the laws of the State of Florida, with the following qualifications as to management and financial strength: the company should be rated "A" as to management, and no less than class "X" as to financial strength, in accordance with the latest edition of Best's Key Rating Guide, or the company holds a valid Florida Certificate of Authority and is a member of the Florida Guarantee Fund. Receipt of any documentation of insurance by the Authority or by any of its representatives which indicates less coverage than required does not constitute a waiver of the Bureau's obligation to fulfill the insurance, requirements herein. 26 32 97- 647 In the event Bureau shall fail to procure and place such insurance, the Authority may, but shall not be obligated to, procure and place same, in which event the amount of the premium paid shall be paid by Bureau to the Authority as Additional Rent upon demand and shall in each instance be collectible on the first day of the month or any subsequent month following the date of payment by the Authority. Failure to pay such amount within the time frame provided shall constitute a default of this Sublease as provided in Section 19.1 below. Bureau's failure to procure insurance shall in no way release Bureau from its obligations and responsibilities as provided herein. Section 11.3 Waiver of Subrogation. Bureau waives all rights to recover against the Authority and City or their officers, employees, agents and representatives, for any damage arising from any cause covered by any insurance required to be carried by Bureau, or any insurance actually carried by Bureau. The Bureau shall cause its insurer(s) to issue appropriate waiver of subrogation rights endorsements to all policies of insurance carried in connection with the Subleased Premises. Section 11.4 No Liability of Authority or City. Authority and City shall not be liable for injury or damage which may be sustained by a person, goods, wares, merchandise or other property of Bureau, or Bureau's employees, invitees, officers, agents and customers, or by any other person in or about the Subleased Premises caused by or resulting from any peril which may affect the Subleased Premises, including, without limitation, fire, steam, electricity, gas, water or rain, which may leak or flow from or into any part of the Subleased Premises, or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the Subleased Premises whether such damage or injury results from conditions arising upon the Subleased Premises, or upon other portions of the Air Transportation Facility, or from other sources. Authority and City shall not be liable for any damages arising from any act or neglect of: (a) any other subtenant of the Air Transportation Facility; or (b) any officer, employee, agents, representative, customer, visitor or invitee of any such subtenant. 27 97- 647 33 • r �J ARTICLE XII DAMAGE AND DESTRUCTION Section 12.1 Destruction of Subleased Premises. If during the Term or any extension thereof, the Subleased Premises shall be damaged by fire or other casualty (the "Casualty"), but the Subleased Premises shall not be thereby rendered wholly or partially untenantable, Authority shall promptly cause such damage to be repaired, subject to collection of sufficient insurance proceeds, and there shall be no abatement of Rent.. If, as the result of Casualty, the Subleased Premises shall be rendered wholly or partially untenantable, then subject to the provisions of Section 12.2, Authority shall cause such damage to be repaired and, provided such damage is not caused by the negligence of Bureau, its members, agents, concessionaires, officers, employees, contractors, licensees or invitees, all Rent (other than any Additional Rent due Authority by reason of Bureau's failure to perform any of its obligations hereunder) shall be abated proportionately as to the portion of the Subleased Premises rendered untenantable during the period of such untenantability. All such repairs shall be made at the expense of the Authority, to the extent insurance proceeds are available, subject to Bureau's responsibilities as set forth herein. Authority shall not be liable for interruption to Bureau's business or for damage to or replacement or repair of Bureau's personal property (including, without limitation, inventory, trade fixtures, floor coverings, furniture and other property removable by Bureau under the provisions of this Sublease) or to any improvements installed in the Subleased Premises, all of which damage, replacement or repair shall be promptly undertaken and completed by Bureau. Section 12.2 Authority's Option to Terminate Lease. If the Subleased Premises is (a) rendered wholly untenantable or (b) damaged as a result of any cause which is not covered by Authority's insurance or (c) damaged or destroyed in whole or in part during the last three (3) years of the Term, or (d) if the building which contains the Subleased Premises is damaged to the extent of 50% or more of Building gross floor area is affected, or (e) if insurance proceeds received are insufficient to complete the repairs, then, in any of such events, Authority may elect to terminate this Sublease by giving to Bureau notice of such election 28 34 . 97- 647 within ninety (90) days after the occurrence of such event. If such notice is given, the rights and obligations of the parties shall cease as of the date of such notice, and Rent (other than any Additional Rent due Authority by reason of Bureau's failure to perform any of its obligations hereunder) shall be adjusted as of the date of such termination. Bureau waives any right to cancel this Sublease as a result of damage to the Subleased Premises because of fire or other catastrophe pursuant to any presenting existing statute, any statute that may be enacted in the future, or any other law. Section 12.3 Demolition of Building. If the Building shall be so substantially damaged that it is reasonably necessary in Authority's sole judgment to demolish such Building for the purpose of reconstruction, Authority may demolish the same in which event the Rent shall be abated to the same extent as if the Subleased Premises were rendered untenantable by a Casualty. Section 12.4 Insurance Proceeds. If Authority does not elect to terminate this Sublease pursuant to Section 12.2, Authority shall disburse and apply any insurance proceeds received by Authority to the restoration and rebuilding of the Air Transportation Facility in accordance with Section 12.1 hereof. All insurance proceeds payable with respect to the Air Transportation Facility (excluding proceeds payable to Bureau pursuant to Section 11.2) shall Obelong to and shall be payable to Authority. ARTICLE XIII BUILDING NAME Section 13.1 Name of Building. It is of material importance to Bureau due to its reputation and standing in the community that the Building maintain .a professional and reputable name. As of the Possession Date, the Building shall be known as "Greater Miami Visitors and Aviation Center". In the event Authority desires to rename the Building, Authority shall submit the proposed name to Bureau and Bureau shall have a period of fifteen (15) days from receipt of said proposed name to approve or reasonably disapprove the proposed name. 29 97- 647 35 ARTICLE XIV EMINENT DOMAIN Section 14.1 Eminent Domain. (a) Permanent Taking If the whole or portion of the Air Transportation Facility is taken under power of eminent domain or sold, transferred or conveyed in lieu thereof, this Sublease shall terminate as to the part so taken on the date Bureau is required to yield possession thereof to the condemning authority. Authority shall, subject to collection of awards made to Authority, make such repairs and alterations as may be necessary in order to restore the part not taken to useful condition and all Rent (other than Additional Rent due to Authority by reason of Bureau's failure to perform any of its obligations hereunder) shall be reduced in the same proportion as the floor area of the Subleased Premises so taken bears to the total floor area of the Subleased Premises. If the aforementioned taking affects the primary purpose of this Sublease as outlined in Section 3.1 hereof, either party may terminate this Sublease as of the date when Bureau is required to yield possession by giving notice to that effect within thirty (30) days after such date. If twenty (20%) or more of the Air Transportation Facility is taken or sold, transferred or conveyed in lieu thereof, and Authority does not, in the good faith opinion of Authority, render it economically feasible to effect restoration thereof for its intended purpose, Authority may terminate this Sublease as of the date on which possession thereof is required to be yielded to the condemning authority, by giving notice of such election within thirty (30) days after such date. If any such notice of termination is given pursuant to this Section, this Sublease and the rights and obligations of the parties hereunder shall cease as of the date of such notice and Rent (other than any Additional Rent due Authority by reason of Bureau's failure to perform any of its obligations hereunder) shall be adjusted as of the date of such termination. 30 36 97- 64.7 (b) Temporary Taking In the event of temporary taking of all or any portion of the Subleased Premises for a period of thirty (30) days or less, then this Sublease shall not terminate but the Base Monthly Rent and Airport Operating Expense Rent shall be abated for the period of such taking in proportion to the ratio of the floor area of the Subleased Premises so taken to that of the remaining floor area of the Subleased Premises. Authority shall be entitled to receive the entire award made in connection with any such temporary taking. Section 14.2 Condemnation Awards. All compensation awarded for any taking of the Subleased Premises or the Air Transportation Facility, or any interest in either shall belong to and be the property of City, except, however, Bureau shall receive the unamortized cost of Bureau's Construction Contribution as provided for in the Funding Agreement. Bureau hereby assigns to City and Authority all rights with respect thereto; provided, however, nothing contained herein shall prevent Bureau from applying for reimbursement from the condemning authority (if permitted by law) for moving expenses, or Bureau's loss of business, or loss of Bureau's good will, or injury to Bureau's improvements, or on account of any cost or loss Bureau may sustain in the removal of Bureau's trade fixtures, equipment and furnishings, or as a result of any alterations, modifications or repairs that may be reasonably required by Bureau in order to place the remaining portion of the Subleased Premises not taken in a suitable condition for the continuance of Bureau's occupancy, but if and only if such action shall not reduce the amount of the award or other compensation otherwise recoverable from the condemning authority by City and Authority or the owner of the fee simple estate in the Air Transportation Facility. ARTICLE XV ASSIGNMENTS AND SUBLETTING Section 15.1 Assignment and Subletting of Subleased Premises. Bureau shall not, at any time during the Term of this Sublease, transfer, assign, sublet, mortgage, pledge or otherwise encumber this Sublease, the term or estate hereby granted, or any interest 31 97- 647 37 hereunder; nor enter into any license or concession agreements with respect thereto, nor permit any third party or parties other than Bureau, its authorized agents, employees, invitees and visitors to occupy the Subleased Premises or any portion thereof (hereinafter individually and collectively referred to as a "Transfer") without first procuring the written consent of the Authority. Any such attempted or purported Transfer, without Authority's prior written consent, shall be void and of no force or effect, shall not confer any interest or estate in the purported transferee ("Transferee"), shall constitute a default under this Sublease and permit Authority, at its election, to terminate this Sublease. The provisions of Section 15.2 constitute the sole means by which Authority's consent may be requested. The consent of Authority may be withheld for any or no reason whatsoever, or conditioned, at its sole discretion. It is agreed that all terms and conditions of this Sublease shall extend to and be binding on all Transferees as may be approved by Authority. Bureau shall be liable for acts and omissions by any Transferee affecting this Sublease. Authority reserves the right to directly terminate any Transferee for any cause for which Bureau may be terminated. Bureau shall reimburse to Authority, as Additional Rent, all costs and expenses, including attorneys' fees, which Authority incurs by reason of or in connection with Transfer, and all negotiations and actions with respect thereto, such Additional Rent to be due and payable within thirty (30) days of receipt of a statement of such costs arid. expenses from Authority. Section 15.2 Procedure for Transfer. Should Bureau desire to make a Transfer hereunder, Bureau shall, in each instance, give written notice of its intention to do so to Authority at least sixty (60) days prior to the commencement date of . any such proposed Transfer, specifying in such notice the nature of such proposed Transfer and the proposed date thereof and specifically identifying the proposed _Transferee-. Such notice shall be accompanied, in the case of a sub -sublease, license, concession or permit agreement, by a copy of the proposed sub -sublease, license, concession or permit agreement and any other documents or financial information (including without limitation, three years audited financial 32 38 97- 647 statements of certified financial statements) Authority may' require in order to make a determination as to the suitability of the Transferee. Authority shall, within thirty (30) days after its receipt of such notice of a proposed Transfer from Bureau, by mailing written notice to Bureau of its intent to do so, either (i) withhold consent to the Transfer, or (ii) consent to such Transfer upon the terms and subject to the conditions provided for in this Article. Bureau acknowledges and agrees that the imposition of the conditions described in this Article XV as a condition of Authority's consent is reasonable. Section 15.3 Acceptance of Rent from Transferee. The acceptance by Authority of the payment of Rent following any Transfer prohibited by this Article shall not be deemed to be a consent by Authority to any such Transfer, nor shall the same be deemed to be a waiver of any right or remedy of Authority hereunder. Section 15.4 Adjustment to Rents as a Result of a Transfer. In the event that Bureau shall make a permitted Transfer hereunder of all or any portion of the Subleased Premises (the "Transfer Space"), then Bureau shall in consideration thereof pay the following to Authority as Additional Rent: (a) In the case of an assignment, Bureau will pay Authority as Additional Rent an amount equal to all sums and other consideration paid to Bureau by or for the account of the assignee, for or by reason of such assignment (including, but not limited to, sums paid for the sale of Bureau's fixtures, leasehold improvements, equipment, furniture, furnishing or other personal property), less, in the case of a sale thereof, the amount of unamortized capital provided by Bureau's Construction Contribution as provided in the Funding Agreement, less an amount equal to all direct, out of pocket expenses incurred by Bureau in entering into such assignment; and (b) In the case of sub -sublease, Bureau shall pay Authority monthly, as Additional Rent, at the same time as the Base Monthly Rent installment required hereunder, fifty percent (50%) of the "Fee" payable by the Transferee pursuant to the terms reserved in the Transfer agreement, concession or license or ten percent (10%) of the gross revenues of Transferee's operations, whichever is greater. For purposes of this Section 15.4 "Fee" shall 33 97- 647 39 mean all use fees, rent and other amounts paid or payable by the Transferee to Bureau pursuant to the terms of the Transfer. Section 15.5 No Release of Bureau. Any assignment, sub -sublease, pledge, encumbrance of this Sublease or Transfer in violation of this Sublease or without Authority's prior written consent, shall at the option of Authority, constitute a default of this Sublease. No Transfer permitted by this Article XV shall release Bureau or change Bureau's primary liability to pay the Base Monthly Rent, Airport Operating Expense Rent, Additional Rent and to perform all other obligations of Bureau under this Sublease. Authority's acceptance of rent from any other person is not a waiver of any provision of this Article XV. Consent to one transfer is not a consent to any subsequent transfer. If Bureau's Transferee defaults under this Sublease, Authority may proceed directly against Bureau without pursuing remedies against the Transferee, or against the Transferee and then also proceed directly against the Bureau under this Sublease. Any action by Authority against. the Bureau shall not release the Transferee. Authority may consent to subsequent Transfers or modifications of this Sublease by Bureau's Transferee, without notifying Bureau or obtaining its consent. Such action shall not relieve Bureau's liability under this Sublease or the liability of the Transferee. Section 15.6 Event of Bankruptcy. If this Sublease is assigned to any person or entity pursuant to the provision of the United States Bankruptcy Code, 11 U.S.C. SS 101 et seq. (the "Bankruptcy Code"), any and all monies or other consideration payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to Authority, shall be and remain the exclusive property of Authority, and shall not constitute the property of Bureau or of the estate of Bureau within the meaning of the Bankruptcy Code. Any and all monies or other considerations constituting Authority's property under this Section not paid or delivered to Authority shall be held in trust for the benefit of Authority and shall be promptly paid or delivered to Authority. Any person or entity to which this Sublease is assigned pursuant to the provision of the Bankruptcy Code shall be deemed without further act or deed to have assumed all of the obligations arising under this Sublease on and after the date of such assignment. 34 40 97" 647 ARTICLE XVI OWNERSHIP OF IMPROVEMENTS Section 16.1 Ownership of Improvements. As of the Possession Date and throughout the Term, title to the Air Transportation Facility, the Site, the Building, the Subleased Premises, and all buildings and improvements thereon shall be vested in City. Furthermore, title to all Alterations made in or to the Subleased Premises during the Term, whether or not by or at the expense of Bureau, shall, unless otherwise provided by written agreement, immediately upon their completion become the property of City and shall remain and be surrendered with the Subleased Premises. Any furniture, furnishing, equipment or other articles of movable personal property owned by Bureau and located in the Subleased Premises, shall be and shall remain the property of Bureau and may be removed by it at any time during the term of this Sublease so long as Bureau is not in default of any of its obligations under this 'Sublease and the same have not become a part of the freehold, and so long as such does not materially affect Bureau's ability to use said premises and conduct its operations as provided herein. However, if any of the Bureau's property is removed and such removal causes damage. to the Subleased Premises, Bureau shall repair such damage at its sole cost and expense. Should Bureau fail to repair any damage caused to the Subleased Premises within thirty (30) days after receipt of written notice from Authority directing the required repairs, Authority shall cause the Subleased Premises to be repaired at the sole cost and expense of Bureau. Bureau shall pay Authority the full cost of such repairs within thirty (30) days of receipt of an invoice indicating the cost of such required repairs. Failure to pay such invoice shall constitute a default of this Sublease as provided in Section 19.1 below. Any property belonging to Bureau and not removed by Bureau at the expiration or earlier termination of the Sublease, shall, at the election of the Authority, be deemed to be abandoned by Bureau, and the Authority may keep or dispose of such property and restore the premises to good order within ten (10) days after billing therefore. At the expiration of the 35 97- 647 41 term of this Sublease, Bureau shall deliver to the Authority the keys and combination to all safes, cabinets, vaults, doors and other locks left by Bureau on the Subleased Premises. ARTICLE XVII SIGNAGE Section 17.1 Signs. Subject to Authority's prior written approval, in its sole discretion, and provided all signs are in keeping with the quality, design and style of the Air Transportation Facility, Bureau, at its sole cost and expense, may install identification signage anywhere in the Offices including in the elevator lobby of the Offices, provided that such signs are not visible from the exterior of the building. Bureau must further obtain approval from all governmental authorities having jurisdiction, and must comply with all Applicable Laws and requirements including those requirements set forth in the City of Miami Code and Zoning Ordinance. Upon the expiration or earlier termination of this Sublease, for any reason, Bureau shall, at its sole cost and expense, remove and dispose of all signs located on the Offices. Signage for the Visitors' Center and Air Museum and exterior signage for Bureau shall be included in the scope of work during construction of the Building. Bureau, at its sole cost and expense, shall be permitted to install signage on Watson Island, subject to approval of the City Manager as to design, location, size and materials, directional and/or informational signs pertaining to the Subleased Premises throughout Watson Island in accordance with an adopted, uniform directional signage program established by the City for Watson Island. ARTICLE XVIII RIGHT TO TERMINATE Section 18.1 Right to Terminate. Either Party has the unconditional right to cancel this Sublease upon occurrence of any of the following events: a) If the projected Base Monthly Rent, Subleased Premises Operating Expense, Airport Operating Expenses and any Additional Rent (hereinafter Cumulative Annual Expenses") for the first Sublease Year effective as of the Possession Date 42 36 9'7 - 647 .: shall cumulatively exceed five hundred and forty-six thousand dollars ($546,000); or b) If the preliminary construction cost estimated of the Building, as prepared by the City's Consultant after the Schematic Design Phase, is in excess of six million dollars ($6,000,000); or c) If the preliminary construction cost estimate of the Building, as prepared by the City's Consultant after the Design Development Phase, is in excess of six million dollars ($6,000,000); or d) If the actual construction cost as determined by the receipt of competitive bids, based upon the City's Consultant's Construction Documents, Drawings and' Specifications, is in excess of six million dollars ($6,000,000). Section 18.2 Notice to Terminate Sublease. If either Parry elects to cancel this Sublease in accordance with the provisions of Section 18.1, the Party canceling the Sublease shall notify the non -canceling Party of its intent to terminate in writing within ten (10) Business Days of its receipt of the projected Cumulative Annual Expenses, preliminary construction costs estimates and/or construction cost as determined by the bids, respectively. ARTICLE XIX DEFAULT PROVISIONS Section 19.1 Events of Default - Bureau. (a) Events of Bureau's Default. Each of following events is defined as an Event of Bureau's Default- (i) The failure of the Bureau to pay any installment of Rent or Additional Rent, when due and the continuance of the failure for a period of ten (10) days after notice in writing from the Authority to Bureau; . (ii) The failure of the Bureau to provide any of the services outlined in Section 4.1 herein and the continuance of the failure for a period of twenty-four (24) hours. after notice in writing (which notice shall specify the respects in which the Authority contends 37 97- 647 43 that the Bureau has failed to perform such services) from the Authority to the Bureau; unless with respect to any default which cannot be cured within twenty-four (24) hours, the Bureau, or any person holding by, through or under the Bureau, in good faith, promptly after receipt of written notice, shall have commenced and continued diligently to reasonably prosecute all actions necessary to cure the default; (iii) The failure of the Bureau to perform any of the other covenants, conditions and agreements of this Sublease on the part of the Bureau to be performed; and the continuance of the failure for a period of thirty (30) days after notice in writing (which notice shall specify the respects in which the Authority contends that the Bureau has failed to perform any of the covenants, conditions and agreements) from the Authority to the Bureau, unless with respect to any default which cannot be cured within thirty (30) days, the Bureau, or any person holding by, through or under the Bureau, in good faith, promptly after receipt of written notice, shall have commenced and continued diligently to reasonably prosecute all action necessary to cure the default; (iv) The filing of an application by the Bureau: (i) for a consent to the appointment of a receiver, trustee or liquidator of itself or all its assets; (ii) of a voluntary petition in bankruptcy or the filing of a pleading in any court of record admitting in writing its inability to pay its debts as they come due; (iii) of a general assignment for the benefit of creditors; (iv) of an answer admitting the material allegations of, or its consenting to, or defaulting in answering, a petition filed against it in any bankruptcy proceeding; or (v) The entry of an order, judgment or decree by any court of competent jurisdiction, adjudicating the Bureau as bankrupt, or appointing a receiver, trustee or liquidator of it or of its assets, and this order, judgment or decree continuing unstayed and in effect for any period of sixty (60) consecutive days, or if this Sublease is taken under a writ of execution. In the event this Sublease is assumed by or assigned to a trustee pursuant to the provisions of the Bankruptcy Reform Act of 1978 (referred to as Bankruptcy Code) (I I USC 1 et seq.), and the trustee shall cure any default under this Sublease and shall provide 44 38 , 977 647 ® 1 • adequate assurances of future performance of this Sublease as are required by the Bankruptcy Code (including, but not limited to, the requirement of Section 365(b)(1)) (referred to as Adequate Assurances), and if the trustee does not cure such default and provide such Adequate Assurances under the Bankruptcy Code within the applicable time periods provided by the Bankruptcy Code, then this Sublease shall be deemed rejected automatically and the Authority shall have the right immediately to possession of the Subleased Premises and shall be entitled to all remedies provided by the Bankruptcy Code for damages for breach or termination of this Sublease. (b) Remedies in Event of Bureau's Default. The Authority may treat any one or more of the Event(s) of Bureau's Default as a breach of this Sublease, and thereupon at its option, without further notice or demand of any kind to Bureau or any other person, the Authority shall have, in addition to every other right or remedy existing at law or equity, do any one or more of the following: (i) Bring an action in court to terminate Bureau's right of possession under this Sublease . and to collect any other sum of money and damages due under the terms of this Sublease, however, notwithstanding the foregoing, the Parties agree that the Bureau shall have the right to cure any Event of Bureau's Default with respect to the payment of Rent, provided that Bureau pays to the Authority, in addition to the full amount of Rent due, interest at the rate of eighteen percent (18%) on such amount due for the period commencing on the date of the Event of Default through the date of such payment, and all reasonable court costs and attorney's fees. (ii) Perform, on behalf of and at the expense of Bureau, any obligation of Bureau under this Sublease which Bureau has failed to perform the cost of which performance by Authority, together with interest thereon at the rate of eighteen percent (18%) from the date of such expenditure, shall be deemed Additional Rent and shall be payable by Bureau to Authority upon demand. Bureau agrees that Authority shall not be liable to Bureau for any damage resulting to Bureau as a result of such action. 39 97- 647 45 0 • (c) Waivers and Surrenders to Be in Writing. The receipt of Rent by the Authority, with knowledge of any breach of this Sublease by the Bureau or of any default on the part of the Bureau in the observance or performance of any of the conditions, agreements or covenants of this Sublease, shall not be deemed to be a waiver of any provision of this Sublease. Notwithstanding the foregoing, Authority must advise Bureau forthwith in writing of any breach of this Sublease which Authority has knowledge of. No failure on the part of the Authority to enforce any covenant or provision contained in this Sublease, or any waiver of any right under it by the Authority, unless in writing, shall discharge or invalidate such covenant or provision or affect the right of the Authority to enforce it in the event of any subsequent breach or default. No covenant or condition of this Sublease shall be deemed to have been waived by the Authority unless the waiver be in writing. Consent of the Authority to any act or matter must be in writing and shall apply only with respect to the particular act or matter to which the consent is given and shall not relieve the Bureau from the obligation, wherever required under this Sublease, to obtain the consent of the Authority to any other act or matter. The receipt by the Authority of any Rent or any other sum of money or any other consideration paid by the Bureau after the entry of a judgment granting possession of the Subleased Premises to the - Authority, shall not reinstate or continue the Term demised unless so agreed to in writing. (d) Repeated Defaults. If more than twice during any twelve (12) month period during the term of this Sublease, Bureau fails to satisfy or comply with the same or substantially the same requirements or provisions under this Sublease, including the non- payment when due of Rent of any kind or nature, then at Authority's election, Bureau shall not have any right to cure such repeated failure to satisfy or comply, the terms and conditions of the section of this Sublease entitled, "EVENTS OF DEFAULT - BUREAU", notwithstanding, unless such repeated default arises from acts of God or results from causes or conditions not attributable, directly or indirectly, to Bureau, its members, employees, agents or others within Bureau's control. In the event of Authority's election not to allow a cure of a repeated failure 40 M 9'7- 647 to satisfy or comply, Authority shall have all of the rights for an uncured Default provided for in the section of this Sublease entitled "EVENTS OF DEFAULT - BUREAU". Section 19.2 Events of Default - Authority. (a) Events of Authority's Default. The failure of the Authority to perform any of the covenants, conditions and agreements of this Sublease which are to be performed by the Authority and the continuance of such failure for a period of thirty (30) days after notice thereof in writing from Bureau to the Authority (which notice shall specify the respects in which Bureau contends that the Authority has failed to perform any of such covenants, conditions and agreements), and unless such default be one which cannot be cured within thirty (30) days and the Authority within such thirty (30) day period shall have commenced and thereafter shall continue diligently to prosecute all actions necessary to cure such defaults, such failure shall constitute an "Event of the Authority's Default". (b) Bureau's Remedies in Event of Authority's Default. If an Event of the Authority's Default shall occur, Bureau, may treat any one or more of the Event(s) of Authority's Default as a breach of this Sublease, and thereupon at its option, by serving written notice on the Authority, the Bureau shall have, in addition to every other right or remedy existing at law or equity (but subject to compliance with all Applicable Laws, the grace periods and cure periods set forth within this Lease, and the requirements pertaining to arbitration as set forth in Article XX of this Sublease), one or more of the following remedies: (i) the right to a writ of mandamus, specific performance, injunction or other similar relief, available to it under applicable law against the Authority (including any or all of the members of its governing body, and its officers, agents or representatives) provided, however, that in no event shall any member of such governing body or any of its officers, agents or representatives be personally liable for any of the Authority's obligations to Bureau hereunder; (ii) the right to obtain damages resulting from such default. 41 97= 647 47 0 0 Section 19.3 Mitigation. Authority and Bureau hereby expressly acknowledge and agree that each shall have an affirmative obligation to mitigate their respective damages as a consequence of a default by the other. ARTICLE XX ARBITRATION Section 20.1 Arbitration. A panel of arbitrators ("Arbitration Panel") shall be established to resolve any controversy, dispute or breach, arising out of or relating to this Sublease, (excluding any controversy, dispute, breach or Event of Bureau's Default with respect to the payment of Base Monthly Rent and Airport Operating Expense Rent), including but not limited to: a) Non -monetary disputes including alleged defaults of Authority or Bureau. b) Whenever the term "reasonable" applies to Authority or Bureau's actions either . to be taken or taken. c) Wherever under -the Sublease an approval is required which "shall not be unreasonably withheld or delayed". d) Monetary disputes other than the payment of Base Monthly Rent and Airport Operating Expense Rent. e) Disputes concerning: (i) whether or not a default as described in Section 19.1 has occurred; (ii) whether or not a default as described in Section 19.1 can or cannot be cured within the time period set forth in said Section, and/or (iii) whether or not the Bureau or any person holding by, through or under the Bureau, (in the event of a default which can not be cured within the time frame required in Section 19.1) has in good faith and promptly commenced and continued to diligently and reasonably prosecute all action necessary to cure the default. The Parties agree that in the event that Authority has commenced an action in court with respect to an Event of Bureau's Default pertaining to the payment of Base Monthly Rent and Airport Operating Expense Rent, notwithstanding anything herein to the contrary, the 48 42 97- 647 Bureau may counterclaim and/or litigate any matter in court which is related to or arising out of Authority's action. Section 20.2 Procedures. These procedures will govern any arbitration according to this Sublease. a) Arbitration will be commenced by: (i) a written demand made by the Executive Director on behalf of the Authority or a written demand made by the Bureau containing a statement of the question to be arbitrated and the name and address of its arbitrator; (ii) a written demand made by the Executive Director on behalf of the Authority at any time after an alleged Event of Bureau's Default (as described in Section 19.1) specifying the default and the name and address of its arbitrator or a written demand made by the Bureau specifying the default and the name and address of its arbitrator at any time after an alleged Event of Authority's Default (as described in Section 19.2). b) Within ten (10) days after its receipt of the written demand, the other Party will give the demandant written notice of the name and address of its arbitrator. Within ten (10) days after the appointment of the two arbitrators, the two arbitrators shall meet and appoint a third arbitrator which shall constitute the Arbitration Panel. c) ' Every member of the Arbitration Panel must be a member of the American Arbitration Association (hereinafter referred to as a "Member"). In addition to the foregoing criterion, each Member shall satisfy the following conditions: (i) no Member shall be a person who is or has been an employee of either the Authority or Bureau during the five (5) year period immediately preceding his or her appointment; (ii) each Member shall be neutral and independent of the Parties to this Sublease; (iii) no Member shall be affiliated with either Parties' auditors; and (iv) no Member shall have a conflict of interest with (including, without limitation, any bias towards or against) a Party hereto. d) If either party shall fail to designate a Member within ten (10) days after receipt of the written demand, then such other party may request the President of the Florida Chapter of the American Arbitration Association to designate a Member, who, when so designated, shall 43 9- 647 49 act in the same manner as if he had been the Member designated by the parry so failing to designate an arbitrator. e) If the two Members appointed by the Parties are unable to agree upon the third Member within ten (10) days from the last date of designation, then upon the request of either of the two (2) Members, or either Parry, such third Member shall be designated by the President of the Florida Chapter of the American Arbitration Association, who shall appoint such third Member within ten (10) days of the request. f) A hearing shall be commenced within thirty (30) days following the selection of the Arbitration Panel. The Parties shall each make'a good faith effort to cooperate with each other in all respects in connection with the exchange of documents relevant to the subject dispute. A court reporter shall make a transcript of the hearing. The Parties and the Arbitration Panel shall use their best efforts to conclude the hearing within ten (10) days. The Parties shall be entitled to such pre-trial discovery as they may agree, or as determined by the Arbitration Panel. The Arbitration Panel shall have the right to question witnesses at the hearing, but not to call witnesses. The Arbitration Panel may grant continuances only by the agreement of both Parties. The Arbitration Panel may render a decision at the close of the hearing, or may request briefs on any or all issues. Any and all such briefs, including reply briefs, shall be filed with the terms and on the schedule set by the Arbitration Panel, but in any event no later forty-five (45) days following the commencement of the hearing. The Arbitration Panel shall render a determination within thirty (30) days from the conclusion of the hearing, and in the event briefs are submitted, within thirty (30) days after receipt of said briefs. If no determination is rendered within such time, unless the parties agree otherwise, a new Arbitration Panel shall be selected as described above, but the new Arbitration Panel shall render a determination solely upon review of the record of the hearing without a further hearing. g) All actions, hearings and decisions of the Arbitration Panel shall be conducted, based upon and in accordance with the Commercial Arbitration Rules of the American Arbitration Association. In determining any matter before them, the Arbitration Panel shall 50 44 . 9 ' 6 4 '7 apply the terms of this Sublease Agreement, and shall not have the power to vary, modify or reform any terms or provisions of the Sublease Agreement in any respect. No Arbitrator is authorized to make an award of punitive or exemplary damages. The Arbitration Panel shall afford a hearing to the Authority and to the Bureau who shall each have the right to be represented by counsel at such hearing and to call witnesses, and the right to submit evidence with the privilege of cross-examination on the question at issue. All arbitration hearings shall be held at a place designated by the Arbitration Panel in Dade County, Florida. h) The Arbitration Panel selected hereunder shall agree to observe the Code of Ethics for Arbitrators in Commercial Disputes promulgated by the American Arbitration Association and the American Bar Association, or any successor code. The decision of a majority with respect to any matter referred to it under this Sublease shall be final, binding and conclusive on the Authority and Bureau and enforceable in any court of competent jurisdiction. Together with the determination, the Arbitration Panel shall provide a written explanation of the basis for the determination. Each party shall pay the fees and expenses of the Member of the Arbitration Panel designated by such party, such parry's counsel and witness fees, and one-half ('/2) of all expenses of the third Member of the Arbitration Panel. The decision of the Arbitration Panel will be final and non -appealable, and may be enforced according to the laws of the State of Florida and judgment upon the award rendered by the Arbitration Panel shall be entered in any Court having jurisdiction thereof. ARTICLE XXI NOTICES Section 21.1 Notice. All notices or other communications which shall or may be given pursuant to this Sublease shall be in writing and shall be delivered by personal service or by certified mail addressed to the parties at their respective addresses indicated below or as the same may be changed in writing from time to time. Such notice shall be deemed given on the day on which personally served, or if by certified mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. 45 97" 647 51 NOTICE TO AUTHORITY: Executive Director Miami Sports & Exhibition Authority 444 SW 2 Avenue, 9' Floor Miami, FL 33130 WITH COPY TO: NOTICE TO BUREAU: Executive Director Greater Miami Convention & Visitors Bureau WITH COPY TO: City Manager Greenberg, Traurig, et al City of Miami 444 SW 2 Avenue, 10' Floor Miami, FL 33130 ARTICLE XXII QUIET ENJOYMENT Section 22.1. Quiet Enjoyment. The Authority represents, warrants and covenants that the Bureau, upon paying the Rent and all other charges, and performing all the covenants and conditions of this Sublease, . shall lawfully and quietly hold, occupy and enjoy the Subleased Premises during the Term without hindrance or molestation by Authority or any Persons claiming under the Authority. ARTICLE XXIII ESTOPPEL CERTIFICATES Section 23.1. Estoppel Certificates. The Authority and the Bureau each agree at any time and from time to time, so long as this Sublease shall remain in effect, upon not less than ten (10) days prior written request by the other Parry, to execute, acknowledge and deliver to the other Parry a statement in writing certifying that this Sublease is unmodified and in full force and effect (or if there have been modifications, that it is in full force and effect as modified, stating the modifications) and the dates to which the Rent and other charges have 46 52 97- 647 been paid in advance, if any, and stating whether any default under the terms of this Sublease is known by, or any notice of default has been served by, the Party giving the certificate. ARTICLE XXIV REMEDIES CUMULATIVE Section 24.1. Remedies Cumulative. No remedy conferred upon or reserved to the Authority or the Bureau shall be considered exclusive of any other remedy, but shall be cumulative and shall be in addition to every other remedy given under this Sublease Agreement or existing at law or in equity or by statute; and every power and remedy given by this Sublease Agreement to the Authority or the Bureau may be exercised from time to time and as often as occasion may arise, or as may be deemed expedient by the Authority or the Bureau. No delay or omission of Authority or Bureau to exercise any right or power arising from any default shall impair any right or power, nor shall it be construed to be a waiver of any default or any acquiescence in it. The rights of the Authority under this Sublease shall be cumulative and the failure on the part of the Authority to exercise properly any rights given hereunder shall not operate to forfeit any of the said rights. Section 24.2. Waiver of Remedies Not To Be Inferred. No waiver of any breach of any of the covenants or conditions of this Sublease Agreement shall -be construed to be a waiver of any other breach or to be a waiver of, acquiescence in, or consent to any further or succeeding breach of the same or similar covenant or condition. ARTICLE XXV SURRENDER AND HOLDING OVER Section 25.1. Surrender at End of Term. On the last day of the Term the Bureau shall peaceably and quietly leave, surrender and deliver the entire Subleased Premises to the Authority, together with any and all alterations, changes, additions and other improvements made upon the Subleased Premises, and together with any and all improvements, furniture, trade fixtures, machinery, equipment or other personal property of any kind or nature, which 47 97- 647 53 the Bureau may have installed or affixed to the Subleased Premises for use in connection with the operation and maintenance of the Subleased Premises (whether or not the property is deemed to be fixtures), in their "as is" condition, free and clear of any and all subleasehold mortgages, liens, encumbrances and claims. If the Subleased Premises are not so surrendered, the Bureau shall repay the Authority for all expenses which the Authority shall incur by reason of it, and in addition the Bureau shall indemnify, defend and hold harmless the Authority from and against all claims made by any succeeding Bureau against the Authority, founded upon delay occasioned by the failure of the Bureau to surrender the Subleased Premises. Section 25.2. Rights Upon Holding Over. At the termination of this Sublease Agreement by lapse of time or otherwise, the Bureau shall yield up immediate possession of the Subleased Premises to the Authority and, failing so to do, agrees, at the option of the Authority, to pay to the Authority for the whole time such possession is withheld a sum per day equal to two hundred (200) percent times 1/365th of the aggregate of the Rent paid or payable to Authority for the prior Sublease Year as set forth in Article VI. The provisions of this Article shall not be held to be a waiver by _the Authority of any right of entry or reentry as set forth in this Sublease Agreement, nor shall the receipt of a sum, or any other act in apparent affirmance of the tenancy, operate as a waiver of the right to terminate this Sublease Agreement and the term granted for the period still unexpired for any breach of the Bureau under this Sublease Agreement. ARTICLE XXVI MISCELLANEOUS PROVISIONS Section 26.1 Ingress and Egress. Subject to rules and regulations, statutes and ordinances and terms of this Sublease governing the use of the facility, Bureau, its agents, representatives, members, visitors and invitees shall have ingress and egress to and from the Subleased Premises. Section 26.2 Successors and Assigns. This Sublease shall be binding upon the parties herein, their heirs, executors, legal representatives, successors and assigns. 54 48 97- 647 0 1 0 Section 26.3 Assignability and, Binding Effects. Subject to all provisions respecting the rights of assignment or subleasing, this Sublease Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto. Section 26.4 Amendments. Authority and Bureau by mutual agreement, shall have the right but not the obligation to amend this Sublease. Such amendments shall be effective only when signed by Authority and Bureau and shall be incorporated as a part of this Sublease. Section 26.5 Award of Agreement. Bureau warrants that it has not employed or retained any person employed by Authority to solicit or secure this Sublease and that it has not offered to pay, paid, or agreed to pay any person employed by Authority any fee, commission, percentage, brokerage fee, or gift of any kind contingent upon or resulting from the award of this Sublease. Section 26.6 Construction of Agreement. This Sublease shall. be construed and enforced according to the laws of the State of Florida. Section 26.7 Attorney's Fees and Expenses. In the event of any litigation between the parties, all expenses, including reasonable attorneys fees and court costs, at both the trial and appellate levels incurred the prevailing parry, shall be paid by the non prevailing party. Section 26.8 Waiver of Jury Trial. The Parties hereby knowingly, irrevocable, voluntarily and intentionally waive any right either may have to a trial by jury in respect of any action, proceeding or counterclaim based on this Sublease, or arising out of, under or in connection with this Sublease or any amendment or modification of this Sublease, or any other agreement executed by and between the parties in connection with this Sublease, or any course of conduct, course of dealing, statements (whether verbal or written) or actions of any Parry hereto. This waiver of jury trial provision is a material inducement for the Authority and Bureau entering into the subject transaction. Section 26.9 Severability. If any provision of the Sublease, or any paragraph, sentence, clause, phrase, or word, or the application thereof, is held invalid, the remainder of the Sublease shall be construed as if such invalid part were never included herein and the. Sublease shall be and remain valid and enforceable to the fullest extent permitted by law. 49 .97- 647 55 Section 26.10 Time of Essence as to Covenants of Sublease. Subject to any extensions expressly provided with respect thereto, time is of the essence as to the performance of the provisions of this Sublease by the Bureau and Authority. Section 26.11 Captions. The captions contained in this Sublease are inserted only as a matter of convenience and for reference and in no way define, limit or prescribe the scope of this Sublease or the intent of any provisions thereof. Section 26.12 Conditions and Covenants. All the provisions of this Sublease Agreement shall be deemed and construed to be conditions as well as covenants, as though the words specifically expressing or importing covenants and conditions were used in each separate provision. Section 26.13 Bureau Obligations Survive Termination. All obligations of Bureau hereunder not fully performed as of the expiration or earlier termination of the Term of this Sublease shall survive the expiration or earlier termination of the Term hereof, including, without limitation, all payment obligations and all obligations concerning the condition of the Subleased Premises. Section 26.14 Radon. 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 guidelines have been found in buildings in Florida. Additional information regarding Radon and Radon testing may be obtained from your county public health unit. Section 26.15 Recording, Documentary Stamps. The parties hereto shall, at the request of either party, execute a short -form lease and have it properly acknowledged for the purpose of recording in the Public Records of Dade County, Florida. Such short -form lease shall have included therein such of the provisions hereof as may be requested by either of the parties. The cost of any such recordation, cost of any State of Florida documentary stamps which legally must be attached to any or all of said papers, and the cost of the applicable Dade County and State transfer tax shall be paid in full by Bureau. 50 56 97- 647 Section 26.16 Duplicate Originals. This Sublease may be executed in any number of copies, each of which shall constitute an original of this Sublease. Section 26.17 No Third Party Beneficiaries. Nothing in this Sublease shall confer upon any person, other than the Parties hereto and their respective successors and permitted assigns, any rights or remedies under or by reason of this Sublease. ARTICLE XXVII AFFIRMATIVE ACTION Section 27.1 Affirmative Action. Bureau shall have in place an Affirmative Action/Equal Employment Opportunity Policy and shall institute a plan for its achievement which will require that action be taken to provide equal opportunity in hiring and promoting for women, minorities, individuals with disabilities, and veterans: Such plan will include a set of positive measures which will be taken to insure nondiscrimination in the work place as it relates to hiring, firing, training and promotion. In lieu of such a policy/plan, Bureau shall submit a Statement of Assurance indicating that their business is in compliance with all relevant Civil Rights laws and regulations. Section 27.2 Nondiscrimination. Bureau agrees that there will be no discrimination against any person based upon race, religion, color, sex, ancestry, age, national origin, mental or physical handicap, in the use of the Premises and improvements thereof. It is expressly understood that upon a determination by a court of competent jurisdiction that discrimination has occurred, Authority shall have the right to terminate this Sublease. ARTICLE XXVIII ENTIRE AGREEMENT Section 28.1 Entire Agreement. This Sublease represents the total agreement between the parties. All other prior agreements between the parties, either verbal or written, are superseded by this Sublease and are therefore no longer valid. 51 97- 647 57 IN WITNESS WHEREOF, the parties hereto have individually, through their proper officials, executed this Sublease the day and year first herein above written. APPROVED AS TO FORM AND CORRECTNESS By: Print Name & Title ATTEST: By: Print Name & Title STATE OF FLORIDA COUNTY OF DADE MIAMI SPORTS AND EXHIBITION AUTHORITY LN Print Name & Title The foregoing instrument was acknowledged before me this day of , 1997, by of the Miami Sports and Exhibition Authority, He/she is personally known to me or has produced as identification and who did (did not) take an oath. Notary Public Signature Print Name of Notary Commission No. 52 97- 647 58 • ATTEST LOU Print Name & Title STATE OF FLORIDA COUNTY OF DADE GREATER MIAMI CONVENTION AND VISITORS BUREAU LE Print Name & Title The foregoing instrument was acknowledged before me this day of , 1997, by of the Greater. Miami Convention and Visitors Bureau, a He/she is personally known to me or has produced as identification and who did (did not) take an oath. Notary Public Signature Print Name of Notary Commission No. 53 97_ 647 59