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Flagstone Ground Lease Part 1
Revisions -6€ 5S 0240-4ra�d--8 .{6440 AMENDED AND RESTATED GROUND LEASE BETWEEN THE CITY OF MIAMI, FLORIDA AND FLAGSTONE ISLAND GARDENS, LLC DATED AS OF 20 Paye 211 of301 224665 Revised 05/06/10 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City ARTICLE I INCORPORATION, EXHIBITS, ATTACHMENTS, AND DEFINITIONS...................4 Section 1.1 Incorporation by Reference...................................................................................4 Section 1.2 Exhibits and Attachments...........................................................:.........................4 Section 1.3 Singular, Plural And Gender.................................................................................6 Section 1.4 Section References................................................................................................6 Section1.5 Defined Terms.......................................................................................................6 Section 1 6 Notice to Third Parties of Composite Attachment 3 ............ .......... t94-'"' Formatted: Normal ` Formatted: Font color: Auto ARTICLEII DEMISE...........................................................................................................................20 Section2.1 Demise................................................................................................................20 Section 2.2 Leasehold Improvements....................................................................................20 Section 2.3 Delivery of Title to Lessor..................................................................................21 ARTICLEIII TERM...............................................................................................................................21 Section3.1 Initial Term..........................................................................................................21 Section 3.2 Extension Terms..................................................................................................22 Section 3.3 Total Terni........... 22 ' "' — Formatted: Normal, Indent: First line: 0.5' Formatted. Font color: Auto ARTICLE IV DELIVERY OF POSSESSION AND DEVELOPMENT AND OPERATION OF THEPROJECT................................................................................................................24 Section 4.1 Delivery of Possession of Property .....................................................................24 Section4.2 Memorandum......................................................................................................24 Section 4.3 Development of the Project.................................................................................24 Section4.4 Operating Team...................................................................................................24 ARTICLE V RENT AND SECURITY DEPOSIT................................................................................26 Section 5.1 Application of Composite Attachment 3 to Pre-Paid Construction Rent, Option Payments, and Construction Rent...........................................................26 Section 5.2 Application of Composite Attachment 3 to Base Reni, hiel ding ° afhi" .....................................................................................................................28 Section5.3 Percentage Rent...................................................................................................30 Section5.4 Security Deposit..................................................................................................32 Section5.5 Place of Payment.................................................................................................35 Section5.6 Default Interest....................................................................................................35 Section5.7 Late Charge.........................................................................................................36 Section 5.8 Rent To Be Without Deduction...........................................................................36 Page 21iof301 224665 Revised 05/06/.1.0 and 05/07/.10 Revised 08/11/1.0 and 8/16/2010 by City ARTICLE VI LEASEHOLD AND SUBLEASEHOLD MORTGAGES...............................................36 Section 6.1 Definitions of Terms...........................................................................................36 Section 6.2 Prohibited Mortgages..........................................................................................47 Section 6.3 Permitted Mortgages...........................................................................................47 Section 6.4 Notification of Lessor.........................................................................................48 Section6.5 Foreclosure..........................................................................................................49 Section6.6 New Lease...........................................................................................................50 vection 6.7 Subordination. Non _Disturbance and Attornment Agreement. ........ 53 _ _ _ _ ----- Formatted: Normal \ � Formatted: Font: 11 pt Section 6.87 Major Subleasehold Estates................................................................................53 Section 6.98 Liability of Approved Mortgagee.......................................................................53 Section 6.109 Assignment of Development Plans and Project Approvals.................................55 Section 6.110 Mezzanine Financing ....................56 Section 6.12-1 Purchase Money Financing.................................................................................58 ARTICLE VII USE OF SUBJECT PROPERTY.....................................................................................59 Section 7.1 Certain Conditions of Leasing............................................................................59 Section 7.2 Major Subleases and Space Leases..............•.....................................................59 Section 7.3 Permitted Uses; Long-Term Changes.................................................................60 Section 7.4 No Discrimination...............................................................................................61 Section7.5 Use of the Property ..............................................................................................61 Section 7.6 Leasehold Improvements to be Open to Public...................................................61 Section7.7 Safety..................................................................................................................62 Section 7.8 Continuous Operation.........................................................................................62 Section 7.9 Compliance with Laws........................................................................................63 Section 7.10 Compliance with Insurance Requirements..........................................................64 Section7.11 Prohibited Uses...................................................................................................64 Section 7.12 Casino Gambling ..........64 Section7.13 Signage................................................................................................................67 Section 7.14 Cure of Defaults Under Approved Leasehold Mortgages and Approved Major Subleasehold Mortgages...........................................................................68 Section7.15 Enforceability......................................................................................................69 ARTICLE VIII RESTRICTIONS ON TRANSFERS AND APPROVAL OF INVESTORS...................69 Section 8.1 Definition ofTernis.............................................................................................69 Section 8.2 Bayralctar Interests..............................................................................................74 11M 21H of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/16/2010 by City 4 Section 8.3 Leasehold and Major Subleasehold Estates........................................................75 Section 8.4 (2,wexi.-e-eutive&P e City Manaser Review and Approval Procedures .......... 78 Section 8.5 Release from Liability .........................................................................................81 Section 8.6 No Consent Required for Affiliate or Related Party Transfer .............................81 Section 8.7 Approved Leasehold Mortgages, Leases and Subleases.. : .................................. 82 Section8.8 Going Public........................................................................................................83 Section 8.9 Other Transactions for Which No Consent Is Required......................................83 Section8.10 Violation..............................................................................................................83 Section 8.11 Acceptance of Rent from Transferee..................................................................83 Section 8.12 Lessor's Participation In Proceeds......................................................................84 Section 8.13 Organizational Documents of Lessee..................................................................85 Section8.14 Investors..............................................................................................................86 Section 8.15 Transfers of the City's Interest............................................................................87 ARTICLE IX EASEMENTS AND LICENSES.....................................................................................88 Section9.1 Utility Easements................................................................................................88 Section 9.2 Easements in Favor of Lessee.............................................................................90 Section 9.3 Access Easement in favor of the Public..............................................................90 Section 9.4 Duration of Easements........................................................................................90 Section 9.5 Dredging to Facilitate Safe Passage of Vessels..................................................90 Section 9.6 Confirmatory Instruments...................................................................................91 ARTICLE X PAYMENT OF IMPOSITIONS......................................................................................91 Section 10.1 Payment of Impositions.......................................................................................91 Section 10.2 Taxes on Lessor...................................................................................................92 Section 10.3 Lessee's Right to Contest Impositions................................................................92 Section10.4 Proof of Payment.................................................................................................94 ARTICLEXI INSURANCE...................................................................................................................94 Section 11.1 Insurance on the Leasehold Improvements.........................................................94 Section 11.2 Other Insurance To Be Carried...........................................................................95 Section 11.3 Policies Obtained by Independent Contractors...................................................99 Section 11.4 Policies Obtained by Major Subtenants..............................................................99 Section 11.5 Delivery of Insurance Policies............................................................................99 Section 11.6 Lessor's Right to Obtain ......................................................100 Section 11.7 o Insurer To Be Approved; Premium Receipts ....................................................101 Page 21iii of 301 22466.> Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/201.0 by City Section 11.8 Waiver of Subrogation......................................................................................101 ARTICLE XII RECORDS AND AUDITING.......................................................................................102 Section12.1 Records of Sales................................................................................................102 Section12.2 Audit..................................................................................................................103 ARTICLE XIII REPRESENTATIONS AND COVENANTS................................................................106 Section 13.1 Limited Representations by Lessor...................................................................107 Section13.2 Authority...........................................................................................................107 Section 13.3 Lessee's Representations and Covenants ..........................................................108 Section 13.4 Disclaimer of Lessor's Representations............................................................110 Section13.5 Survival.............................................................................................................110 ARTICLE XIV DEVELOPMENT AND CONSTRUCTION; REPAIRS, MAINTENANCE, ALTERATIONS AND IMPROVEMENTS..................................................................110 Section 14.1 Construction of Project Components; Composite Attachment 3.......110 Section 14.2 Commencement and Completion of Construction ............................................111 Section 14.3 Ombudsman and Consultant.............................................................................112 Section 14.4 Landscaping and Roadways..............................................................................114 Section 14.5 Pre -Construction Maintenance..........................................................................115 Section 14.6 Maintenance of Construction Site.....................................................................115 Section 14.7 Construction Traffic; Coordination...................................................................115 Section 14.8 Avoidance of Nuisance.....................................................................................116 Section 14.9 Other Construction............................................................................................117 Section 14.10 Payment and Performance Bond.......................................................................117 Section 14.11 Damage to Other Improvements; Interference ..................................................118 Section 14.12 Underground Utilities........................................................................................118 Section14.13 Liability.............................................................................................................119 Section14.14 Entrance Road...................................................................................................120 Section14.15 Joinders.............................................................................................................120 Section 14.16 Maintenance and Repair....................................................................................121 Section 14.17 Alteration and Modification to Leasehold Improvements After Completion of Leasehold Improvements ..........................................................122 Section 14.18 Removal of Liens..........................................'.....................123 Pane 21iv of 301 224665 Revised 05/0611.0 and 05/07/10 Revised 08/11/10 and 8/1.6/201.0 by City ARTICLE XV LESSOR'S RIGHT TO PERFORM LESSEE'S COVENANTS; REIMBURSEMENT OF LESSOR FOR AMOUNTS SO EXPENDED ......................125 Section 15.1 Performance of Lessee's Covenants to Pay Money..........................................125 Section 15.2 Lessor's Right to Cure Lessee's Default...........................................................126 Section 15.3 Reimbursement of Lessor and Lessee...............................................................126 ARTICLE XVI DAMAGE OR DESTRUCTION...................................................................................127 Section 16.1 Definitions of Terms.........................................................................................127 Section 16.2 Net Insurance Proceeds; Obligation to Fund Restoration Work .......................128 Section 16.3 Restoration Work..............................................................................................130 Section16.4 Termination.......................................................................................................132 Section 16.5 No Other Right to Terminate............................................................................133 Section 16.6 Rights of Approved Leasehold Mortgagee........................................................133 Section 16.7 Major Subleases................................................................................................133 ". Section 16.8 Deferral of Base Rent........................................................................................133 ARTICLEXVII ARBITRATION..........................................................................................................134 Section17.1 Binding Arbitration...........................................................................................134, Section17.2 Procedures.........................................................................................................135 Section 17.3 No Delay in Completion of Work.....................................................................139 Section 17.4. Right of Approved Mortgage to Participate ......................................................139 ARTICLEXVIII MECHANICS' LIENS..............................................................................................140 Section18.1 Definition.................................................................I........................................140 Section 18.2 No Consent by Lessor.......................................................................................140 Section 18.3 Notice of No Liability of Lessor.......................................................................140 Section 18.4 Inclusion in Memorandum of Lease..................................................................141 Section 18.5 Discharge of Mechanics' Liens.........................................................................141 Section18.6 Right to Contest.................................................................................................142 Section18.7 Releases.............................................................................................................142 ARTICLE XIX COVENANT AGAINST WASTE; INSPECTION .......................................................143 Section19.1 Waste.................................................................................................................143 Section 19.2 Inspection of Property ................................................:......................................143 Section 19.3 Major Subleases and Space Leases...................................................................145 ARTICLE XX ENVIRONMENTAL LIABILITY.........................................................................:......146 Section 20.1 Definition of Terms.°........................................................... .......146 Paye 21v of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/1.6/201.0 by 0ty Section 20.2 Environmental Obligations of Lessee...............................................................148 Section 20.3 Lessee's Liability for Contamination During Lease Term................................149 Section20.4 Indemnity..........................................................................................................149 Section20.5 Notices..............................................................................................................150 Section20.6 Lessor's Remedies............................................................................................150 Section 20.7 Phase I Environmental Assessment at End of Lease Term...............................150 Section 20.8 Major Subleases and Space Leases...................................................................151 Section 20.9 Survival of Lessee's Obligations.......................................................................152 ARTICLE XXI PUBLIC UTILITY CHARGES.....................................................................................152 Section 21.1 Lessee to Provide and Pay for Utilities.............................................................152 Section 21.2 Compliance with Utility Services.....................................................................153 Section21.3 Permits..............................................................................................................153 Section 21.4 No Obligation for Utilities not on Property ......................................................153 Section 21.5 Notice and Disclaimer as to Utility Services and Other Services .....................153 ARTICLE XXII INDEMNIFICATION AND RELEASE OF LESSOR...............................................154 Section 22.1 General Indemnification of Lessor Without Limitation of Any Other Indemnity Given Hereunder..............................................................................154 Section22.2 Defense..............................................................................................................155 Section 22.3 Lessor's Participation........................................................................................155 Section22.4 No Limitation....................................................................................................155 Section 22.5 Challenges to Lease...........................................................................................155 Section22.6 Survival.............................................................................................................156 ARTICLE =H LIEN FOR RENT AND OTHER CHARGES ..........................................................156 Section23.1 Lien for Rent.....................................................................................................156 Section23.2 Other Liens........................................................................................................157 Section23.3 Limitations........................................................................................................157 ARTICLEXXIV CONDEMNATION..................................................................................................158 Section 24.1 Definition of Terms...........................................................................................158 Section 24.2 Entire Property Taken by Condemnation ..........................................................160 Section 24.3 Part of Property Taken by Condemnation .........................................................161 Section 24.4 Takings for Temporary Period..........................................................................162 Section 24.5 Event of Lessee's Default.................................................................................163 Section 24.6 Rights of Approved Leasehold Mortgagee .......................................................164 ° Page 21vi of 301 224665 Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/1.6/201.0 by City Section 24.7 Major Subleases................................................................................................164 ARTICLEXXV DEFAULT PROVISIONS..........................................................................................164 Section 25.1 Events of Default by Lessee..............................................................................168 Section 25.2 Remedies in Event of Lessee's Default.............................................................171 Section 25.3 Events of Default — Lessor................................................................................172 Section25.4 Mitigation..........................................................................................................173 ARTICLE XXVI COVENANTS OF LESSOR AND LESSEE............................................................173 Section 26.1 Partial Modification of Restrictions..................................................................173 Section 26.2 Civic Arts Endowment Trust............................................................................174 ARTICLE XXVII QUIET ENJOYMENT.............................................................................................175 ARTICLE XXVIII LESSEE NOT TO ENCUMBER LESSOR'S INTEREST .....................................175 - ARTICLE XXIX LIMITATION OF LIABILITY..............................................I................................176 Section 29.1 Limitation of Liability of Lessee.......................................................................176 Section 29.2 Limitation of Liability of Lessor.......................................................................178 ARTICLE XXX ESTOPPEL CERTIFICATES.....................................................................................178 Section 130.1 Estoppel Certificates from Lessee.....................................................................178 Section 30.2 Certificates from Lessor....................................................................................179 ARTICLEXXXI NO WAIVER.............................................................................................................180 Section 31.1 Delays in Exercising Rights..............................................................................180 Section 31.2 Waivers to be in Writing...................................................................................180 Section31.3 Receipt of Rent..................................................................................................180 Section31.4 Consents............................................................................................................181 ARTICLE XXXII SURRENDER AND HOLDING OVER..................................................................181 Section 32.1 'Surrender at End of Term..................................................................................181 Section 32.2 Rights Upon Holding Over...............................................................................183 Section32.3 No Waiver.........................................................................................................183 Section32.4 Survival.............................................................................................................183 ARTICLE XXXIII MAJOR SUBLEASES, SPACE LEASES AND APPROVED TIMESHARE LICENSES......................................................................................183 Section 33.1 Leasing and Subleasing.....................................................................................183 Section 33.2 Major Subtenant SNDA's.................................................................................184 Section33.3 Major Subleases................................................................................................184 O O Pose 21vii of 301 22466.4 Revised 05/061.10 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City Section 33.4 Composite Attachment 3 Time Periods for Cross- Defaults..................................................................................................187 Section33.5 Space Leases.....................................................................................................187 Section 33.6 Approved Time Share Licenses........................................................................187 ARTICLE XXXIV MINORITY AND WOMEN PARTICIPATION AND EQUAL EMPLOYMENT OPPORTUNITIES..............................................................190 Section 34.1 First Source Hiring Agreement.........................................................................190 Section 34.2 Minority and Women Participation and Equal Employment Opportunity ........ 190 Section 34.3 Skills, Training and Employment Center ..........................................................191 Section34.4 Tax Credits........................................................................................................192 Section 34.5 Labor Peace Agreement(s).....................................................192 ARTICLE XXXV OPERATING AGREEMENTS FOR HOTELS AND MARINA ............................192 Section35.1 Approval............................................................................................................193 Section 35.2 Approved Operators..........................................................................................193 Section35.3 Terms..........:.....................................................................................................193 Section 35.4 Non -Disturbance and Attomment Agreement ..................................................193 ARTICLE XXXVI UNAVOIDABLE DELAY......................................................................................193 Section 36.1 Unavoidable Delay(s) .194 Section 36.2 Manner of Notice of Unavoidable Delay(s) and Conditions With Respect to Performance of Obligations..........................................................................194 ARTICLEXXXVII NOTICES ...............................................................................................................195 Section37.1 Notices..............................................................................................................195 Section 37.2 Notice to Approved Mortgagees.......................................................................196 Section 37.3 Sufficiency of Service.......................................................................................196 ARTICLE XXXVIII MISCELLANEOUS PROVISIONS.....................................................................196 Section38.1 Captions............................................................................................................197 Section 38.2 Conditions and Covenants.................................................................................197 Section 38.3 Entire Agreement..............................................................................................197 Section38.4 Modification......................................................................................................197 Section 38.5 Time of Essence as to Covenants of Lease .......................................................198 Section38.6 Recording..........................................................................................................198 Section 38.7 Gl jef Exeeutive Offiee+City Manager Approval Procedures ............................198 Section38.8 Governing Law...................................................................................o............. 201 Paye 21viii of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/1.6/201.0 by City Section 38.9 Jurisdiction and Venue......................................................................................201 Section 38.10 Waiver of Jury Trial..........................................................................................202 Section 38.11 Conflict of Interest...........................................................................:................202 Section 38.12 Covenants to Run with the Leasehold Estate....................................................203 Section38.13 No Merger.........................................................................................................203 Section38.14 Brokerage..........................................................................................................203 Section38.15 Counterparts......................................................................................................204 Section 38.16 No Third Party Beneficiaries.............................................................................204 Section 38.17 Attorney's Fees and Expenses...........................................................................204 Section 38.18 Invalidity of Provisions.....................................................................................204 Section 38.19 No Conflicts of Interest ........................................................205 o Pate 21ix of 301 224665 Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/1.6/201.0 by City U AMENDED AND RESTATED GROUND LEASE' This Amended and Restated—Ground Lease ("Lease") made as of , 201_, between The City of Miami, a municipal corporation of the State of Florida ("Lessor" or "City"), having its offices at 3500 Pan American Drive, Miami, Florida 33133, and Flagstone Island Gardens. LLC, a Delaware limited liability company (successor by merger to Flagstone Properties, LLC, a Florida limited liability company) ("Lessee"), whose principal office is located at 888 MacArthur Causeway, Miami, Florida 33132. Lessor and Lessee are sometimes hereinafter collectively referred to as the "Parties." STATEMENT OF BACKGROUND AND PURPOSE A. The City is the owner in fee simple of certain land located in the City of Miami, Miami -Dade County, Florida known as and hereinafter referred to as "Watson Island". Watson Island is shown on the sketch set forth in Exhibit A. . B. A portion of land located in the northwest quadrant of Watson Island, consisting of approximately 10.79 acres, is legally described in Exhibit B and is hereinafter referred to as the "Upland Parcel". C. The City is also the owner in fee simple of certain submerged land, consisting of approximately 13.35 acres, located adjacent and contiguous to the Upland Parcel and legally described in Exhibit C. Such submerged land, together with the right to use and enjoy the waters located above same, is sometimes hereinafter referred to as the "Submerged Parcel." If this Amended and Restated Ground Lease is used for a Major Project Component separately, then (i)except as set forth in Section 33.4 concerning cross -defaults, independent non-disturbable ground leases will be signed for each Major Project Component, (ii) provisions which apply to the Property or the Project as a whole will be revised to conform and apply proportionately to the Major Project Component, (iii) this document will be substantially preserved but revised as logically required and as contemplated in the Amended and Restated Agreement to Enter into Ground Lease to make it applicable to a Major Project Component and (v) Composite Attachment 3 (as hereinafter defined in Recital L) will be attached to each ground lease and tE?e relevant provisions of same will be " incorporated. Pale 211 or301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/16/201.0 by City D. The respective locations of the Upland Parcel and the Submerged Parcel are shown on that certain survey prepared by Weidener Surveying and Mapping PA dated July 11, 2002 under Project No. 1712, a copy of which is attached hereto as Exhibit D. The Upland Parcel and the Submerged Parcel, located on Watson Island at approximately 1050 MacArthur Causeway, together with all appurtenant rights belonging thereto, are sometimes hereinafter collectively referred to as the "Property." E. Pursuant to the authority expressly conferred in the City of Miami Charter, and general law, the City Commission of Miami (the "City Commission"), on December 14, 2000, adopted Resolution No. 00-1081, which authorized the publication of a Mega Yacht Marina and Mixed Use Waterfront Development Opportunity - Watson Island, Miami, Florida, Request for Proposals dated February, 2001, as amended (the "Watson Island RFP"), for the development of the Property as described in the Watson Island RFP. F. In response to the Watson Island RFP, Lessee submitted to Lessor a proposal entitled "Island Gardens at Watson Island RFP" dated July 13, 2001 (the "Island Gardens Proposal"). The Island Gardens Proposal was approved by voter referendum by the electorate of the City of Miami on November 6, 2001 and by the City Commission on November 15, 2001 under Resolution No. 01-1198. G. The Island Gardens Proposal consists of a proposal for the development on the Property of the Project. The Island Gardens Proposal contemplates that the Project will include, but not necessarily be limited to, the Major Project Components, consisting of the Marina, Hotel A, Hotel B, the Retail Space and the Parking Garage (as all of such terms are hereinafter defined), together with certain other amenities as are described with greater particularity in O � Pace 212 of 301 224665 Revised 05/06/1.0 and 05/07/10 Revised 08/11/10 and 8/16/201.0 by Citv Exhibit E. The Major Project Components, together with such other amenities, are sometimes hereinafter collectively referred to as the "Project Components". The Conceptual Site Plan for the Project is set forth in Exhibit F. H. It is the mutual desire of the Parties that the Property be leased and demised by Lessor to Lessee for the purposes set forth in this A+needed-ancl-Resta*d-L-easeAmended and Restated Ground. Lease (including the development and construction of the Project pursuant to the terms and provisions set forth herein), subject to and upon the express terms and conditions ' contained herein. The Parties believe that this Amended and Restated 4:;ea eAmended and Restated Ground Lease is consistent in all material respects with the Watson Island RFP and the Island Gardens Proposal. 1. This document is an Amended and Restated Ground Lease, which incorporates i various revisions to and completely amends, restates and sepereedessupersedes the original form of Lease agreed to by the parties. J. The City is authorized to enter into this ^ _ _ _�'ed tid "�::cto i--`- Amended Formatted: Font: 12 pt - ---- ---- - - - - -- - - - -- ------------ _ Formatted: Font: 12 pt and Restated Ground Lease_pursuant_to City -Commission -Resolution -No.— adopted_'_ Formatted: Font: 12 pt 20_ (attached hereto and made a part hereof as Composite Attachment 1), and Flagstone is authorized to enter into this Affiemled afid Restaied 6easeAmended and :Restated Ground Lease pursuant to its dated 20_ (attached hereto and made a part hereof as Attachment 2). Formatted: Font: 12 pt K. Flagstone has requested in accordance with the Watson Island RFP and the Island Gardens Proposal for certain-Elevelepn3ent-and-eenft�=get+ei}-e}3tio-ns-eenstructic�trseheelule paraeat-tens �tticl-eei°titrc3tker rnatters revisions including among other things. revisions Page 213 of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City concernine construction schedules. rents. options and option payments. development rights. obligations. and time periods; and L. The City Commission pursuant to Resolution No. 10- , adopted 2010 with Exhibit A and other attachments thereto which sets forth the key business terms applicable to, among other things, rents, options and option payments, development rights, obligations, time periods (attached hereto, made a part hereof, and collectively referred to hereinafter as "Composite Attachment 3") as such terms and conditions relate to this Anleatled and Resiffte , ' easeAmended and Restated Ground Lease and to the. Amended and Restated Agreement to Enter Into Ground Lease, dated 20_ to which a form or this Amended and Restated Ground Lease is attached as an exhibit (the "Agreement to Enter"). In consideration of the foregoing and of the rent, covenants, and agreements hereinafter set forth, the Parties do hereby covenant and agree as follows: ARTICLE I INCORPORATION. EXHIBITS AND DEFINITIONS Section 1.11nco1poration by Reference. The foregoing Statement of Background and Purpose is hereby incorporated into this ^heeded and Restated Leas"Amended and Restated Ground Lease by this reference as if set out in full in the body of this Aiiieiided ft..a l,e eAmended and Restated Ground Lease. Furthermore, as individual Amended and Restated Ground Leases are prepared with reference to each individual Major Project Component, Composite Attachment 3 and the relevant terms and conditions thereof shall be included in such Amended and Restated Ground Lease © o Page 214 of 301 224665 Revised 05/06/10 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City - 0 New eases-al-l-Approved-M�'toi��bleftses-airct-X111—SpaEe-I;e�tse� Section 1.2Exhibits and Attachments. Attached hereto and forming a part of this mendefl- ad-R--esti�ted-heaseAmended and. Restated Ground Lease are the following Exhibits, Attachments, and Riders: Exhibit A -- Exhibit B -- Exhibit C -- Exhibit D -- Exhibit E -- Exhibit E-1 -- Exhibit F -- Exhibit G -- Exhibit H -- Exhibit I -- Exhibit J -- Exhibit K -- Exhibit L -- Exhibit M -- Sketch of Wdtson Island Legal Description of Upland Parcel Legal Description of Submerged Parcel Copy of Survey Description of Project Components and Amenities Description of Public Art Conceptual Site Plan Definition of Gross Revenues Definition of Marina; Marina Approval Procedures Permitted Title Exceptions List of Pre -Approved Hotel Franchisors List of Pre -Approved Lenders Approved Leasehold Mortgage Subordination,. Non -Disturbance and Attornment Agreement Approved Major Subleasehold Mortgage Subordination, Non -Disturbance and Attornment Agreement Pace 215 of 301 22466.5 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City Formatted: Underline . a g • e o es, all New eases-al-l-Approved-M�'toi��bleftses-airct-X111—SpaEe-I;e�tse� Section 1.2Exhibits and Attachments. Attached hereto and forming a part of this mendefl- ad-R--esti�ted-heaseAmended and. Restated Ground Lease are the following Exhibits, Attachments, and Riders: Exhibit A -- Exhibit B -- Exhibit C -- Exhibit D -- Exhibit E -- Exhibit E-1 -- Exhibit F -- Exhibit G -- Exhibit H -- Exhibit I -- Exhibit J -- Exhibit K -- Exhibit L -- Exhibit M -- Sketch of Wdtson Island Legal Description of Upland Parcel Legal Description of Submerged Parcel Copy of Survey Description of Project Components and Amenities Description of Public Art Conceptual Site Plan Definition of Gross Revenues Definition of Marina; Marina Approval Procedures Permitted Title Exceptions List of Pre -Approved Hotel Franchisors List of Pre -Approved Lenders Approved Leasehold Mortgage Subordination,. Non -Disturbance and Attornment Agreement Approved Major Subleasehold Mortgage Subordination, Non -Disturbance and Attornment Agreement Pace 215 of 301 22466.5 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City Exhibit N -- Prohibited Uses Exhibit N-1 - Covenants as to Port of Miami Exhibit O -- List of Approved Financial Advisors — Needs upda�ea :� t- - - - Formatted: Indent: Left: 0.5" Exhibit P -- Organizational Documents Exhibit Q -- Provisions Not Applicable to Private Lessor Exhibit R -- Civic Arts Endowment Trust Exhibit S -- Approved Major Subtenant Subordination, Non -Disturbance and Attornment Agreement. Exhibit T -- Form of First Source Hiring Agreement Exhibit 14.14 -- Entrance Road Exhibit 14.18 -- Hold Harmless and Indemnification Agreement Composite Attachment 1— City's Authorizing Resolution No. , adopted , 20_ Attachment 2 — Flagstone's authorization adopted , 20_ Composite Attachment 3 — City's Resolution No. 10- , adopted , 2010 with Exhibit A and other-- - -' Formatted: Indent: Left: 2.5", First line: 0" attachments there -to (previously and hereafter referred to as "Composite Attachment 3" Composite Attachment 4 — City Commission Resolution No. 09-0263 O 4> Page 216 of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City adopted May 28. 2009 and Form of Labor Peace--- -" Formatted: Indent: Left: 2.5', First line: 0" Agreement (if applicable to the particular Ground Lease and the related Major Project Component) ceetiei,-1.3 Section 1.3 Singular. Plural And Gender. Any word contained in the text— — — Formatted: Indent: First line: 0.5', No bullets or numbering of this Ameftded-terxl-Res}ated-L-elseAmencled and Restated Ground Lease 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. °ems 1.4 Section 1.4 Section References. All references herein to an "Article", "Section", "Subsection", "paragraph", "subparagraph", or "clause" shall be deemed to refer to the applicable "Article", "Section", "Subsection", "paragraph", "subparagraph" or "clause" of this Amended acid Restated" """'Amen.ded and Restated Ground Lease, unless there is a specific reference to another document. Seedon "14 Section 1.5 Defined Terms. Certain terms are defined in various Articles of this ^ a ' Restated-6easeArnended and Restated Ground Lease. In addition, for the purposes of this ' - d ' and Rest.4ed LeageArnerided and Restated Ground Lease, the following words shall have the meanings attributed to them in this Section 1.5: (e) "Affiliate" means any Person which, either directly or indirectly (through one or more intermediaries) controls, is controlled by, or is under common control with another Person (where control means the possession, directly or indirectly, by a Person of the power, acting on one's own, to direct or cause the direction of the management decisions and policies of another Person, whether through the ownership or control of voting securities, or beneficial interests, by contract or otherwise). o C� Page 217 of 301' 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City (f) "AAA'' means the American Automobile Association, Mobil, or any similar rating agency or any successor thereto. (g) "Applicable Laws" means any and all applicable laws, statutes, codes, ordinances, orders, rules, regulations, requirements, judgments, decrees and injunctions of any Governmental Authority, now existing or hereafter enacted, adopted, issued or amended from time to time, whether foreseen or unforeseen, ordinary or extraordinary, which may be applicable to the Property and/or the Leasehold Improvements or any part thereof. (h) "Approved Initial Construction Lender" has the meaning ascribed to it in Section 6.1. (i) "Approved Operators'' has the meaning ascribed to it in Article XXXV. (j) "Approved Time Share License" means any Time Share License as defined in Section 721.05(35), Florida Statutes. (k) `Bayraktar Family" means Mehmet Bayraktar and/or any spouse, sibling, parent and/or lineal descendant of Mehmet Bayraktar. (1) "BMaltar Family Equity Contribution" means that the equity in the Project Provided by Mehmet Bayraktar personally or the Bayraktar Family, through one or more Persons which are wholly owned by the Bayraktar Family and over which Mehmet Bayraktar has Voting and Operational Control, shall equal not less than $22,400,000. The foregoing sum shall include all demonstrable hard costs and soft costs reasonably related to the Project expended or reimbursed by the foregoing parties prior to or after the date hereof. (m) "Base Rent" means the base rent to be paid by Lessee as set forth in Section 5.2. (n) "Business DUs'means Monday through Friday, excluding legal holidays in the o ° � Page 218 of 301 224665 Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City City of Miami. (o) "Certificate of Occupancy" means a certificate issued by the City of Miami Building and Zoning Department as defined within the Florida Building Code Section 106.1 and in accordance with City of Miami Ordinance No. 6145. (p) "Ghi f R.eptifiv Offi ei-City Manager" means the administrative head of the City's government who is authorized to execute this Aniended--and—Rest-eted--Lea-seAmended and Restated. Ground Lease and other documents, including notices required hereunder. (q) "Ghi c n...,cutiye n—�eTCity Manager Approval Procedures" has the meaning ascribed to it in Section 38.7. (r) "Commence(s) Construction" means that all material plans and permits are approved and issued and the actual act of physical construction has begun. (s) "Completion Date" means the date upon which the earlier of the temporary certificate of occupancy ("TCO") or the certificate of occupancy ("CO"), has been issued for the completion of construction. (t) "Construction Plans and Specifications" means the detailed and complete plans and specifications for all proposed construction on the Property (including, without limitation, infiastructure, elevations, site plans, colors, signage plans, lighting, materials, access, utilities, security, setbacks, floor plans and landscaping) which are approved by Lessor for the Project or any applicable Major Project Component. (u) "Construction Rent" has the meaning ascribed to it in Section 5.1. (v) "Debt Service Coverage Ratio" mans the ratio of the net operating income on o Page 219 of 301 22466.5 i Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/201.0 by City average of the Project (or the applicable portion thereof) during a consecutive twelve (12) month period over the annual debt service payable in connection with any and all applicable Approved Leasehold Mortgages during such twelve (12) month period. (w) "Default Rate" means a per annum interest rate equal to the lesser of: (i) the LIBOR Rate, plus Seven Percent (7%), with such Default Rate being adjusted each time the LIBOR Rate is adjusted, effective on the date such adjustment in the LIBOR Rate becomes effective; or (ii) the highest rate permitted by Applicable Law. (x) The aEti le "„"'' ' "Development and Construction -Repairs. Maintenance. Alterations and Improvements" and the provisions concerning same means as set forth in i -s Article XIV of this Amended and Restated Ground Lease. Formatted: Font: Not Bold, Underline Formatted: Underline (y) "Development Plans" means those plans required in connection with the design and construction of the Project ,or the applicable portion(s) thereof for the particular Major Project Component(s) being developed at such time including, without limitation: (i) the Construction Plans and Specifications, (ii) all application materials or other materials necessary or required in connection with obtaining the Project Approvals; and (iii) any and all other plans, drawings or renderings, including, without limitation, design development plans, conceptual layouts and artistic or architectural renderings, elevations or plans. (z) "Direct Space Lease" means any Space Lease where Lessee is the landlord. (aa) "Direct mace Tenant" means any Space Tenant occupying any portion of the Leasehold Improvements pursuant to a Direct Space Lease. (bb) "Disqualified Person" means any Person who, as of the time when the applicable o ° ' Pave 2110 o:P301 224665 Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City transaction occurs or approval or consent of the Chief -DEeeutive Offieer City Manager is requested: (i) shall have committed a material breach under any material lease or other written agreement with Lessor; (ii) has had any criminal felony convictions within the immediately preceding ten (10) years; (iii) has a widespread reputation (as evidenced by newspaper articles or other media reports of the mainstream press which are not subsequently retracted) for corrupt or unlawful business dealings; or (iv) is named on any Terrorist List. (cc) "Event of Lessee's Default" has the meaning ascribed to it in Section 25.1. (dd) "Extension Option" has the meaning ascribed to it in Section 3.2. (ee) "Extension Term" has the meaning ascribed to it in Section 3.2. (fo "Force Majeure Events" means any of the following items, events or conditions, provided that such item, event or condition has a reasonably demonstrable effect on the Project or its construction or operation: (i) lockouts; (ii) labor strikes; (iii) shortages in labor, materials or supplies other than occasional and ordinary shortages in the ordinary course of business (provided that any such shortages are not caused by any failure to timely order materials or supplies); (iv) casualty; (v) terrorist acts or threats; (vi) war; (vii) hurricanes; (viii) earthquakes or other natural catastrophes and other acts of God; or (ix) any similar item, event or condition beyond the reasonable control of Lessee. (gg) "Governmental Authority" means any court, agency, authority, board (including, without limitation, any environmental protection, planning or zoning board), bureau, commission, department, office or instrumentality of any nature whatsoever of any governmental or quasi-govemmental unit of the United States or the State of Florida, whether now or hereafter in existence, having jurisdiction over Lessee, Watson Island, the Property or any aspect of the D O Page 2111 of 301 22466.5 Revised 05/06/10 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City development or operation of the Project; provided, however, that such term shall include the City only in its municipal capacity and not its proprietary capacity. (hh) "Gross Revenues" has the meaning ascribed to it in Exhibit G. (ii) "Hotel Retail Operations", means any Retail operations or facilities located within, near or as part of either Hotel, which operations or facilities are part of or integrated into the operation of such Hotel or are otherwise for the use, support or operation of such Hotel (including, but not limited to, any spa and fitness facilities made available for the usage of such Hotel's guests, whether or not such facilities are located within such Hotel). Oj) "Hotel(s)" shall mean, either individually or collectively, Hotel A and/or Hotel B. (11))"Hotel A" means a hotel which: (i) shall have the number of units specified in Exhibit E; (ii) may have (in addition to those units described in clause (i) above) units allocated to Approved Time Share Licenses, as specified in Exhibit E; (iii) shall be built to, and operated I ursuant to, the standards of a four (4) diamond hotel or better (as defined in the AAA's hotel rating standards); and (iv) shall participate in a franchise system of a national or international hotel brand approved by the Chief E-Ee .alive Offiee City Manager pursuant to Section 4.4. For purposes of the foregoing, the Parties understand and agree that the term "units" does not include, and Hotel A may have, associated facilities and amenities, including, but not necessarily limited to: (A) spa and fitness areas; (B) administrative and office areas; (C) cabanas; (D) lounges; (D) conference and banquet facilities; and (E) customary non -lodging facilities available for seasonal use by Marina staff and employees; and (F) Hotel Retail Operations. (mm) "Hotel B" means a hotel which: (i) shall have the number of units specified in Pace 2112 of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City Exhibit E; (ii) may have (in addition to those units described in clause (i) above) lee3,s whie# units allocated to Approved Time Share Licenses, as specified in Exhibit E; (iii) shall be built to, and operated pursuant to, the standards of a four (4) diamond hotel or better (as defined in the AAA's hotel rating standards); and (iv) shall participate in a franchise system of a national or international hotel brand approved by the Chief &iee `"'e "ffl"" City Manager pursuant to Section 4.4. For purposes of the foregoing, the Parties understand and agree that the term "units" does not include, and Hotel B may have, associated facilities and amenities, including, - but not necessarily limited to: (A) spa and fitness areas; (B) administrative and office areas; (C) cabanas; (D) lounges; (D) conference and banquet facilities; and (E) customary non -lodging facilities available for seasonal use by Marina staff and employees; and (F) Hotel Retail Operations. (nn) "Impositions" means all governmental assessments, fees, charges and levies imposed by any Governmental Authority, including, without limitation, assessments imposed by the City (in its municipal capacity), franchise fees, excises, license and permit fees, levies, charges and taxes (including ad valorem real estate taxes on the land under the Property and/or the Leasehold Improvements), personal property taxes, bed taxes, sales taxes, fire fees and parking surcharges of any kind now or hereafter enacted, whether general or special, ordinary or extraordinary, foreseen or unforeseen, any of which is properly levied against the Property, the Leasehold Improvements, the Leasehold Estate and/or any Major Subleasehold Estate, as applicable. (oo) "Initial Term" has the meaning ascribed to it in Section 3.1. (pp) "Lease Term" has the meaning ascribed to it in Section 3.2. 0 0' Page 2113 of 301 22466.5 Revised 05/06/1.0 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City (qq) "Leasehold Estate" means all of Lessee's right, title and interest as Lessee pursuant to this Affiended and Restated bea Amended and Restated Ground Lease, including, without limitation, the right, title and interest granted hereunder in and to the Property. (rr) "Leasehold Improvements" means all the buildings, structures and improvements constituting the Project Components, including the improvements described in the approved Development Plans, and any improvements constructed thereafter fi•om time to time, which are now or hereafter during the Lease Term located upon the Property and owned by Lessee or any Major Subtenant, as applicable; as well as any apparatus and equipment permanently attached and incorporated into such buildings, structures and improvements at any time, including all fixtures, fittings, appliances, machinery; garage equipment, heating equipment, lighting equipment, cooling equipment, air conditioning and ventilating equipment, wiring, controls, communications equipment, plumbing, switchboards, antennae, elevators, escalators, floor coverings, refi•igerating equipment, hot water heating and all other appliances and equipment, to the extent same are owned by Lessee or any Major Subtenant, as applicable; provided, however, that the term "Leasehold Improvements" does not include any Personal Property. (ss) "Lessee" has the meaning ascribed to it in the opening paragraph of this Amended and Restated Lease, and shall include Lessee's successors and/or permitted assigns. (tt) "Lessor" or "C&" has the meaning ascribed to it in the opening paragraph of this Amended -a d Restated L. ageAmended and Restated Ground Lease, and shall include Lessor's successors and/or permitted assigns. (uu) "LIBOR Rate" means the rate per annum (rounded upward to the nearest 1/16th of Page 2114 of 301 22466.5" Revised 05/06/.1.0 and 05/07/.10 Revised 08/11/1.0 and 8/1.6/2010 by City 1.00%) appearing on Telerate Page 3750 (or any successor page) as the London interbank offered rate for deposits in U.S. Dollars with ninety (90) day maturities; provided, however, that: (i) if for any reason such rate is not available, the applicable rate shall be the rate per annum (rounded upward to the nearest 1/16th of 1.00%) appearing on a Reuters Screen LIBOR Page as the London interbank offered rate for deposits in U.S. Dollars with ninety (90) day maturities; (ii) if more than one such rate is specified on such Telerate Page or Reuters Screen LIBOR Page, the applicable rate shall be the arithmetic mean of all such rates; and (iii) if the LIBOR Rate by reference to either such Telerate Page or such Reuters Screen is unavailable, then the applicable rate shall be the arithmetic mean of the rates per annum at which U.S. Dollar deposits for a ninety (90) day term are offered by three (3) prime banks in the London interbank market. (vv) "Maior Project Components'' means, individually and collectively, the Marina, Hotel A, Hotel B, the Retail Space and the Parking Garage. (ww) "Major Sublease" means any sublease agreement pursuant to which Lessee subleases any Major Project Component to a Major Subtenant. (xx) "Major Subleasehold Estate" means all of an applicable Major Subtenant's right, title and interest as a sublessee pursuant to the applicable Major Sublease, including, without limitation, the right, title and interest granted thereunder to the Major Project Component demised thereby. (yy) "Major Subtenant" means any Person using or occupying or entitled to use or occupy any Major Project Component under a Major Sublease in accordance with the provisions of this A-ffleiide"tid-P�ated�easeAmended and Restated Ground Lease. (zz) "Major Use Special Permit" has the meaning ascribed to it in Article 17 of Pave 2115 of 301 22466.5" J Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City Ordinance 11000, as amended, the Zoning Ordinance of the City of Miami, Florida. (aaa) "Marina" shall have the meaning ascribed to it in Exhibit H and Exhibit E. and in Composite Attaeliment 3. b .r. feee)b( bb) "Mega-Yachts" means marine vessels eighty (80) feet or longer. --- Formatted: Indent: Left: 0.5 No bullets or numbering (d ddlccc) "Open for Business" or "Opened for Businesse" means the Completion-- - - ` Formatted: Indent: First line: 0.5" Date.eneFa of Accupaxey #er steel jerRr�rjeet £empenent. (ddd) "Operating Agreements" has the meaning ascribed to it in Article 35. (eee) "Operating Team" means: (i) the franchisor or licensor, if applicable, of Hotel A, and the operator or manager of Hotel A; (ii) the franchisor or licensor, if applicable, of Hotel B, and the operator or manager of Hotel B; (iii) the operator or manager of the Marina; (iv) Fairchild Tropical Garden; and (v) The Historical Museum of South Florida. (fff) "Option Pavment(s)" has the meaning ascribed to it in Section 5.1. (ggg) "Parking Garage" means a multi-level parking garage containing at least the minimum required number of dedicated parking spaces for the Hotels, the Marina and the Retail Space. (hhh) "Partial Modification of Restrictions" means collectively, that certain Partial Modification of • Restrictions approved by the Trustees with respect to the Project, which instrument modifies the restrictions set forth within Deed No. 19447 from the Trustees in favor of Lessor filed for record April 11, 1949 in Deed Book 3130, Page 257, of the Public Records of Page 2116 of 301 224665 Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City Miami -Dade County, Florida, as subsequently amended by that certain Amended Partial Modification of Restrictions approved by the Trustees and dated , 2010. (iii) "Percentage Rent" means Rent payable by Lessee to Lessor based on a percentage of Gross Revenues as set forth in Section 5.3. (jjj) "Permitted Title Exceptions" means those certain title matters set forth in Exhibit L (kick) "Permitted Uses" means those certain uses described in the description of the Project Components and amenities set forth in Exhibit E. (111) "Person" means any natural person, trust, firm, partnership, corporation, joint venture, association, company, or any other legal or business entity or investment enterprise. (mmm)"Personal Property" means any and all items of personal property which are: (i) located on the Property and/or the Leasehold Improvements but not permanently attached thereto and incorporated therein; and (ii) any and all trade fixtures (i.e., fixtures which can be removed without permanently defacing or materially injuring any of the Leasehold Improvements) located on the Property and/or the Leasehold Improvements. (nnn) "Possession Date" has the meaning ascribed to it in Section 4.1. (000) "Pre -Paid Construction Rent/Base Rent" has the meaning ascribed to it in Section 5.1. (ppp) "Prohibited Uses" has the meaning ascribed to it in Section 7.11 and Exhibit N: (qqq) "Project" means all of the Leasehold Improvements (including, but not limited to; all of the Major Project Components) to be completed pursuant to Article XIV hereof and substantially in accordance with the approved Development Plans. Pale 2117 of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/2010 by City (rrr) "Project Approvals" means those approvals and permits from Governmental Authorities which are required in order to commence and complete construction of the Project, including, but not necessarily limited to: (i) the approval of the "Notice of Proposed Change" which shall, among other things, include the Property within Increment Two of the Downtown Development of Regional Impact; (ii) a Major Use Special Permit which shall have been issued for the Project in connection with the Development Plans approved by the Chief Ex".eutiv 8fflee -City Manager; (iii) the Partial Modification of Restrictions; and (iv) with respect to the Marina, such applicable permits and approvals for the Marina as are defined in,�e- t I{e) el _ -' Formatted: Font: Not Bold, Not Highlight Formatted: Not Highlight � Section 7.7 of the Amended and Restated Agreement to Enter Formatted: Font: Not Bold, Not Highlight Formatted: Not Highlight Into Ground Lease (it being understood and agreed, however, that Lessee shall not be required to Formatted: Font: Not Bold, Not Highlight obtain all Project Approvals for all Major Project Components in order to commence construction of a particular portion or phase of the Project or a particular Major Project Component) and in Exhibit H. (sss) "Pro -Rata Share" means the proportionate amount of any Rents, Security Deposit, or other amounts payable to the City that is attributed to each Ground Lease based upon its related Major Project Component's cost as a percentage of the overall Projected Development Cost (as described in Section 5.4(b) below) for the Project so that the total amount of any such Rents, Security Deposits, or other amounts payable to the City are fairly divided among the Ground Lessees and the City receives one hundred percent (100%) of all required Rents, Security Deposits and any other amounts due to the City. (ttt) "Rent" shall be as set forth in Article V and shall include Pre-Paid_Constiuction_, - Formatted: Not Highlight Rent/Base Rent, Construction Rent, Option Payments, Base Rent,,-nA—.Percentage Rent RM 2118 of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/201.0 by City and any additional rent or other sums owing or which may be owing from Lessee to Lessor pursuant to the provisions of this ^ . d'_: aiid Restated ? _aseA.mended and Restated Ground Lease. (uuu) "Retail" means the sale .of any and all commodities, food and beverages, merchandise or services to the consumer. (vvv) "Retail Space" means up to 221,000 square feet of first-class space for Retail facilities and operations (exclusive of any Hotel Retail Operations), as measured in accordance with Exhibit E. (www) "Space Lease" means any sublease or sub -sublease or other arrangement between Lessee or any Major Subtenant, as sublessor, and a Space Tenant, as sublessee, for the leasing of any portion of the Retail Space or any other space within the Leasehold Improvements (including, but not limited to, the Parking Garage and the Hotel Retail Operations) in accordance with Section 33.5. The term "Space Leases'' includes Direct Space Leases, but does not include Major Subleases. (xxx) "Space Tenant" means any tenant, subtenant, licensee and other occupant (including, but not limited to; any Direct Space Tenant) of any portion of the Leasehold Improvements pursuant to a Space Lease. The term "Space Tenant" does not include any Major Subtenant. (yyy) "Start(s) Construction" means that all material plans and permits are approved and issued and the actual act of physical construction has begun. (zzz) "Terrorist List" means any list issued by a Governmental Authority of individuals and/or entities engaged in terrorist activities, including, but not limited to, the following: (i) list o PaLye 2119 of 301 22466_> Revised 05/06/1.0 and 05/07/10 Revised 08/11/1.0 and 8/16/201.0 by City of Specially Designated Terrorists (SDTs) issued by the Office of Foreign Assets Control ("OFAC") pursuant to Executive Order 12947; (ii) list of Specially Designated Global Terrorist (SDGTs) issued by OFAC pursuant to Executive Order 13224; and (iii) list of Foreign Terrorist Organizations (FTOs) issued by the Secretary of State. (aaaa) "Trustees" means the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida. (bbbb) "Uhavoidable Delay(sl" means delays on account of Force Majeure Events. Such term shall be deemed to exclude: (i) delays on account of any lack of funds or economic conditions; and (ii) typical ordinary delays in obtaining any permits or other approvals from Governmental Authorities. Such term shall be deemed to include: (i) delays in the completion of the Project on account of any injunction or other order issued by any court having jurisdiction of the Property; and (ii) any extraordinary delays in obtaining any permits or other approvals from Governmental Authorities. (cccc) "Voting and Operational Control", as used with respect to any Person, means that such Person: (i) owns, directly or through one or more intermediary Persons, not less than Twenty Percent (20%) of the ownership interests of another Person; and (ii) has voting and day- to-day control over the operation, management and decision-making of such other Person, subject to usual and customary consent rights of other investors with respect to certain "major" decisions or actions. (dddd) "Work" means all construction to be performed by Lessee under this Apaend acid—Rest ted—1 easeAmended and Restated Ground Lease, including any repairing, restoring, removing, or replacing of the Leasehold Improvements. Page 2120 of 301 22466.5 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/1.6/2010 by City Section l.(i Notice to 'T'hird Parties of Composite Attachment 3. Allep 1sC>tis or entities reviewing and/or relying upon this Amended and Restated Ground Lease are hereby put on notice as follows: (a) Composite Attachment 3 is a material part of this Amended and Restated Ground Lease and is intended to have the same weight and require the same compliance as each and every other provision of this Amended and Restated Ground. Lease. (b) The rights and interests of any and all lenders. assignees. sublessees. and other tXpes of encumbrance holders transferees or holders of any other type of lien right or interest whatsoever (collectively. an "Interest") in to or under this Amended and Restated Ground Lease or the Leasehold Estate created hereby (collectively. "Interest Holder") are hereby provided notice that each of them acquires such Interest subiect to all of the terms and conditions of this Amended and Restated Ground Lease. specifically inchuiinR but not limited to the terns of Composite Attachment 3. and the foregoing is specifically intended to ani by way, of example and not limitation. with respect to all Ar)1 roved Construction Lenders Approved I enders Approved Mezzanine Lenders. Approved Mortgages and Mortgagees Approved Leasehold Mortgages.and Mortgagees Approved Subleasehold Mortgages and Mortgagees. Approved Major Subleases. Major Space Leases, Space Leases. Direct Space Leases. and any and all other types of Interest(s) or Interest Holders. - - Formatted: Font: 11 pt, Font color: Auto ARTICLE II Formatted: Body Text, Indent: First line: 0", Tab stops: Not at 0.5" DEMISE Section 2.1 Demise. Subject to and in accordance with the terms and conditions of this I d n tat a r c: Amended. and Restated Ground Lease and the Permitted Title Exceptions, Lessor, for and in consideration of the Rent and of the covenants and agreements Page 2121 of 301 224665 Revised 05/06/.1.0 and 05/07/10 Revised 08/11/10 and 8/16/2010 by City made by Lessee to be kept, observed and performed hereunder, does demise and lease the Property to Lessee, and Lessee does lease the Property from Lessor. Section 2.2 Leasehold Improvements. So long as this A-iietfded---and--- R-estated LeaseAmended and Restated Ground Lease remains in force, the Leasehold Improvements shall be owned in fee simple by Lessee and be the sole property of Lessee, and Lessor shall have no interest therein. Upon expiration of the Lease Term or sooner termination of this Amefleel and I:estated-L-easeAmended and Restated Ground Lease, the Leasehold Improvements (as well as any Personal Property which is to be delivered to Lessor pursuant to Section 32.1(a) below and all licenses, easements, permits, and governmental approvals related to the Property) shall become the sole property of Lessor in fee simple, and free and clear of all encumbrances other than: (i) the lien of any Impositions assessed but not yet due and payable (for which Lessee shall remain obligated to pay to the extent that they are allocable to the period prior to the termination of this "mended and :Re••'awd ' Amended and L),estated Ground Lease); (ii) any rights surviving an early termination of this Amended and Resta"ed T easeAmended and Restated Ground Lease (i.e., prior to the stated expiration date of the Lease Term) which are granted hereunder or under an applicable Subordination, Non -Disturbance and Attomment Agreement to any Approved Mortgagees (as defined in Section 8.1), Major Subtenants, holders of Approved Timeshare Licenses, and Space Tenants (it being understood that any and all rights to possession or occupancy of the Property and/or the Leasehold Improvements or any portion thereof shall in no event extend beyond the stated expiration date of the Lease Term, as same may be extended pursuant to Section 3.2); and (iii) the Permitted Title Exceptions and any other title matters consented to in writing by the Ghief r: eeutive &ffiee•'City Manager or Lessor during the Lease Page 2122 of 301 22466_> Revised 05/06/.1.0 and 05/07/10 Revised 08/I1/1.0 and 8/16/2010 by City