Loading...
HomeMy WebLinkAboutAmendment 3 to Lease AgreementAMENDMENT NO. 3 TO LEASE AGREEMENT BETWEEN CITY OF MIAMI AND BISCAYNE BAY RESTAURANT CORPORATION, A Florida Corporation, a wholly owned subsidiary of Specialty Restaurants Corporation, a California Corporation, d/b/a Rusty Pelican TABLE OF CONTENTS 1. Incorporation of Recitals 2 2. Definitions 2 3. Tenn 3 4. Use 4 5. Ownership of Improvements 5 6. Pledge of Leasehold Interest 6 7. Rent 7 8. Gross Receipts 10 9. Records, Accounts and Statements 11 . 10. Manner of Operation 13 11. Maintenance and Repair 14 12. Destruction 19 13. Insurance 19 14. Notices. 18 15. Capital Improvements 19 16. State Approval .. 19 17. Safety 19 18. Americans With Disabilites Act 19 19. Force Majeure 19 20. No Defaults 19 21. Counterparts .. 19 22. Amendment 19 23. Additional Parking 19 Exhibit "A" Legal Description Exhibit "B" Required Capital Improvements Exhibit "B-I" - Phase I Required Capital Improvements Exhibit "B-II" Phase II Required Capital Improvements Exlibit'B-III" .Phase III Required Capital Improvements Exhibit "B-IV" Optional Capital Improvements Schedule 1 Insurance Requirements Schedule 2 Location of New Parking Facility and Access Road from New Parking Facility Schedule 3 Sketch of Location for Additional Parking Schedule 4 Construction Draw Down Schedule Schedule 5 Form of Notice of Parking Rights AMENDMENT NO. 3 TO LEASE AGREEMENT THIS AMENDMENT to Lease ("Amendment") is made and entered into as of the J9'? day of/Jt ''4 2009 ("Execution Date"), between the CITY OF MIAMI, a municipal corporation of the State of Florida ("Lessor"), and BISCAYNE BAY RESTAURANT CORPORATION, a Florida Corporation, a wholly owned subsidiary of Specialty Restaurants Corporation, a California corporation, dub/a Rusty Pelican ("Lessee"). RECITALS A. Lessor and Lessee entered into a Lease Agreement dated February 13, 1970 (the "1970 Lease Agreement") whereby the Lessor leased to Lessee the property described in Exhibit "A" attached hereto (the "Property"), for the development and operation of a first class waterfront restaurant now known as the Rusty Pelican Restaurant (the "Rusty Pelican"). The 1970 Lease Agreement has been amended by a Supplemental Lease Agreement dated July 23, 1970, an Amendment No. 1 to Lease Agreement dated May 28, 1982, an undated Addendum to Lease Agreement authorized by Resolution 89-508 adopted by the City Commission on June 7, 1989, and an Amendment to Lease Agreement dated December 18, 2001 (collectively the "Lease"). B. The current term of the Lease, together with the options to renew, expires on October 1, 2012 (the "Original Expiration Date"). C. Lessee requested that Lessor extend the term of the Lease in order to allow Lessee to amortize the cost of certain capital improvements that the Lessee plans to - perform on the Property, which are more specifically described in Exhibit "B" hereto. D. Pursuant to Resolution No. 03-855, adopted July 24, 2003, the City Commission of the City of Miami (the "City Commission") authorized the submission for consideration by the electorate of the City of Miami (the "City"), of a ballot question to amend Section 29-B of the Charter of the City to authorize the City Commission to amend the Lease for the purpose of extending the Original Expiration Date and increasing the minimum guaranteed rent to be paid by Lessee to the Lessor. E. . On a special municipal election held on November 4, 2003 the electorate of the City approved the proposed extension and modification of the Lease. F. Subsequent to said special municipal election, the City engaged EDSA Consultants to prepare a master plan (the "EDSA Plan") for the entire island of • Virginia Key (on which the Property is located). G. As a result of certain recommendations included in the EDSA Plan, additional and different capital irnprovements have therefore been proposed by Lessee, and Lessor has agreed to and accepted the same. NOW, THEREFORE, in consideration of the foregoing and the conditions, covenants and agreements hereinafter set forth and in consideration of other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree to amend the Lease as follows: 1. Incorporation of Recitals The recitals and findings set forth above are hereby adopted by reference thereto and incorporated herein as if fully set forth in. this Amendment. 2. Definitions A new paragraph is hereby added immediately prior to Paragraph 1 of the Lease to define certain terms and phrases in the Lease as follows: A. "Effective Date" means the date on which the State of Florida issues its determination that the use of the Property complies with the deed restriction or waives the deed restriction, as described in Section 16 of this Amendment. 2 B. "Governmental Authorities" means all federal, state and municipal governments, agencies, departments, commissions, boards and officials having jurisdiction over the Property, the Improvements or the construction thereof. C. "Gross Revenues" shall have the meaning ascribed to it in Section 8 of this Amendment amending Paragraph 12 of the Lease. D. "Improvements" means all improvements, including Lessee's Capital Improvements, buildings, structures and fixtures now or hereafter situated, placed, constructed or installed on the Land, including but not limited to, all attached fixtures, equipment, apparatus, machinery, fittings and appliances, and the Baywalk and Vista Point, if constructed by Lessee as contemplated in this Amendment, and any additions to, substitutions for, changes in or replacements of, the whole or any part thereof. E. "Land" means the approximately 5.886 acres of real property in the City of Miami, described in Exhibit "A" hereto. F. "Lessee's Capital Improvements means the improvements described in Exhibit "B" as the "Required Capital Improvements" and the "Optional Capital Improvements", as the same may be modified, relocated, reduced or expanded, by mutual agreement, and as provided in this Lease Agreement, from time to time. G. ."Phase I and Phase II Required Capital Improvements" mean the improvements described in Exhibit "B" as Required Capital Improvements: Phase I and Phase II to be constructed by the Lessee in accordance with Section 15 of this Amendment. H. "Property" shall mean the Land and the Improvements. 3. Term Paragraph 2 of the Lease is hereby amended to read as follows: 2. Term. The base term of this Lease currently. expires on October 1, 2012. The base term. of this Lease shall be automatically extended to October 1, 2027 provided (i) the Effective Date occurs on or before the first anniversary of the Execution Date, or such other date as may be extended by the City Manager in accordance with 3 Section 17 of this Amendment, and (ii) Lessee has substantially completed the Phase I and Phase II Required Capital Improvements within twenty-four (24) months from the Execution Date, subject to Force Majeure (and, with respect to the Phase II Required Capital Improvements, subject to extension as provided for in Section 34. C of this Amendment). In addition, if the base term of the Lease is extended in accordance with the preceding sentence, Lessee is hereby granted two (2) options to renew the term of this Lease, under the same terms and conditions, for two (2) additional successive periods of five (5) years each. If exercised, the first extension term will commence on October 2, 2027 and will expire on October 1, 2032 (the "First Extension Term") and, if exercised, the second extension term will continence on October 2, 2032 and expire on October 1, 2037 , (the "Second Extension Tenn"). Lessee shall give Lessor written notification of its intention to exercise the option to extend this Lease for the First Extension Term no earlier than October 1, 2025, and not later than October 1, 2026. Lessee shall give Lessor written notification of its intention to exercise the option to extend this Lease for the Second Extension Term no earlier than October 1, 2030, and not later than October 1, 2031. If the conditions described in the second sentence of this Section are not satisfied within the time provided herein, then the provisions of this Section 3 for the automatic extension of the base term of the Lease will be void and of no further force and effect and the Lease will expire on October 1, 2012. For purposes of this Amendment, the Phase I and Phase II Required Capital Improvements shall be deemed substantially completed when the Lessee's architect certifies to Lessor in writing, and Lessor accepts such certification, that such Phase I and Phase II Required Capital Improvements are substantially complete. 4. Use Paragraph 4 of the Lease is hereby amended to read as follows: 4. Use. The Property is leased to Lessee for the purpose of operating a first class restaurant, including dining and banquet facilities, cocktail lounge, outdoor patios/decks/Ceremony Deck, walkways, gift shop; water taxi accommodations and related parking facilities, and for purposes incidental thereto. Lessee shall 4 not use the Property for any other purposes without the prior written approval of the- City Manager, which may be withheld or conditioned in his/her sole discretion. As consideration for the extension of the terns of this Lease, Lessee has agreed to construct a pedestrian walkway substantially in accordance with the sketch attached as Exhibit "B-1" hereto (the "Baywalk"), and an outdoor deck substantially in accordance with the sketch attached as Exhibit "B-1" hereto (the "Vista Point"). The Baywalk and Vista Point shall be treated as part of the Property for all purposes under this Lease, except that (i) the Baywalk shall be open to use by the public and such public use shall not be prohibited by the Lessee in the operation of its business in the Property, and (ii) the Vista Point shall be open to use by the public, but Lessor acknowledges and agrees that Lessee shall be authorized to use the Vista Point in the regular course of its business, including for restaurant events. Notwithstanding the above, the Lessor shall have the right to request from Lessee the use of the Vista Point for up to six (6) events per calendar year for City special events. The Lessor's use of the Vista Point for such special events shall be coordinated with and reserved through the General Manager of Lessee's restaurant. In no circumstance shall any City special event supercede a previously reserved event booked by the Lessee's restaurant.. The Lessor shall have the right to make alternative arrangements for food and beverages for any of its special events at the Vista Point at its sole discretion. Notwithstanding same, the Lessee shall have the first right of refusal to provide such food and beverages if Lessee agrees to provide similar or better quality food and beverages, with a comparable menu, at the sarue or lesser price than that which the City was going to pay to a third party. 5. Ownership of Improvements Paragraph 8 of the Lease is hereby amended to read as follows: 8. Ownership of Improvements. Except for the Baywalk and Vista Point, which once constructed by the Lessee, shall immediately become the property of the Lessor, all other improvements, furnishings, and equipment constructed or installed on the Property by Lessee shall be personal property of Lessee and Lessee shall have legal title thereto 5 during the term of the Lease. Upon the expiration or termination of this Lease, title to all permanent improvements constructed on the Property and all transferable licenses used in the operation of the restaurant, shall vest in Lessor. Title to all supplies, furniture, furnishings, inventories, removable fixtures and equipment not permanently attached to the Property, and other personal property, shall remain vested with the Lessee, and the Lessee shall have the right to remove such items from the Property provided that it repairs any damage caused by Lessee's removal. Should Lessee fail to repair any damage to the Property caused by Lessee's removal of its personal property within ten (10) days after receipt of written notice from the Lessor directing the required repairs, the Lessor shall cause the -Property to be repaired at the sole cost and expense of Lessee. Lessee shall pay Lessor the full cost of such repairs within ten (10) days of receipt of an invoice indicating the cost of such required repairs. At the Lessor's option, the Lessor may require Lessee to remove any improvements constructed in connection with the Ceremony Deck. Should Lessee fail to remove said improvements and other items of personalty by the last day of the Tenn, said property shall be deemed abandoned and thereupon shall become the sole personal property of the Lessor. The Lessor, at its sole discretion and without liability, may remove and/or dispose of same as the Lessor sees fit, all at Lessee's sole cost and expense. 6. Pledge of Leasehold Interest Paragraph 9 of the Lease is hereby'amended to read as follows: 9. Pledge of Leasehold Interest. Lessee may pledge or encumber Lessee's leasehold interest as security for an institutional loan, subject to the written approval of the City Manager of the City, which approval will not be unreasonably withheld, or delayed, from reputable lenders or lending institutions, but not beyond the term of the Lease and in an amount not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000) for the sole purpose of, finding capital improvements to the Property. The leasehold interest pledged shall not include public land. Prior to obtaining written approval, Lessee shall furnish to the City Manager all agreements and 6 legal instruments pertaining thereto involving the pledge of leasehold interest as security. 7. Rent Paragraph 10 of the Lease is hereby amended to read as follows: 10. Rent A. Base Rent. Commencing on the Execution Date, Lessee shall pay Lessor as Base Rent the sum of Three Hundred Sixty Thousand Dollars ($360,000) per year, payable in equal monthly installments of Thirty Thousand Dollars ($30,000) per month, plus Florida State Use Tax, if applicable. Base Rent shall be paid in advance on the first day of each and every calendar month from the Execution Date. If the first payment of Base Rent does not fall on the first day of the month, the first payment shall be prorated based upon the number of days in such month. Commencing on the fifth (5th) anniversary of the Execution Date, and every five (5) years thereafter during the term of the Lease, the Base Rent shall be adjusted to that amount which equals fifty percent (50%) of the average total annual rent including Percentage Rent paid by Lessee to Lessor during the previous five (5) year period, provided however that in no event shall the annual Base Rent be reduced below the annual Base Rent applicable for the prior five year period. B. Percentage Rent. From the Execution Date and continuing tloughout the. term of the Lease, Lessee shall pay to Lessor a variable percentage of Lessee's monthly Gross Revenues (as defined herein) made from or upon the Property, including, without limitation, the Baywalk, Vista Point and Ceremony Deck, if any, in excess of the Base Rent (as such sum may be increased over the Term 'of the Lease) for that same time period. Percentage Rent shall be computed on a monthly basis ("Percentage Rent Period") beginning with the Execution Date and continuing throughout the Term. The arnotmt of. Percentage Rent, if any, due and payable from Lessee shall be calculated as follows: (1) From the Execution Date and continuing until the earlier of (a) the first day of the month following the month of completion of the first Phase to be completed of Required Capital Improvements; or (b) the first day of the 24th month after issuance of the first building permit for the first Phase 7 of the Required Capital Improvements, the amount of monthly Percentage Rent due from Lessee shall be as follows: • 2.5% of Gross Revenues in excess of the monthly Base Rent from $0 to $100,000 per month; and • 3% of Gross Revenues in excess of the monthly Base Rent over $100,000 to $150,000 per month; and • 5% of Gross Revenues in excess of the monthly Base Rent over $150,000 per month. (2) From the earlier of (a) completion of the first Phase of Required Capital Improvements to be completed; or (b) 24 months after issuance of the first building pennit for the first Phase of Required Capital Improvements, and continuing through the term of the Lease, as extended hereby, the amount of Percentage Rent due from Lessee shall be as follows: • 7% of Gross Revenues from $0 to $12,000,000 annually; and • 8% 'of Gross Revenues over $12,000,000 annually. (3) Thereafter, during the First Extension Period and the Second Extension Period, Percentage Rent shall be as follows: • 8:5% of Gross Revenues. C. Percentage Rent Due. Percentage Rent in the amounts set forth in Subsection B above shall. be payable in monthly installments, in arrears, on the first (1st) day of each month during the Term, commencing on the first (1st) day of the month which is two months after the Execution Date (e.g., if the Execution • Date is in May, the first instalhuent of percentage rent for the month of May, calculated as set forth in Subsection B above, is due July 1). Lessee shall deliver to Lessor a statement setting forth the Gross Revenues during the. applicable Percentage Rent period, and Lessee shall pay to Lessor the amount, if any, by which the applicable percentage of the Gross Revenues for such month exceeds the monthly installment of Base Rent (as the same is increased pursuant to the terms of this Lease) for the same month. Each statement shall be signed and certified to be complete and correct by an officer of Lessee. Such statement shall show the monthly Gross Revenues and an itemization of any exclusions or deductions therefrom for such month, as well as year-to-date amounts for the current calendar year. D. Delivery of Financial Information. Within one hundred twenty (120) days after the expiration of Lessee's fiscal year, Lessee shall deliver to Lessor annual audited financial statements including Gross Revenues for the Property for the preceding calendar year prepared by Lessee's independent certified public accountant. In the event that the audited financial statements indicate that Lessee has underpaid Percentage Rent, Lessee shall pay to Lessor within said one hundred twenty (120) day period any additional Percentage Rent that is due. In the event that the audited financial statements indicate that Lessee has overpaid Percentage Rent, such overpayment shall be reimbursed to Lessee in the form of a credit to Lessee for the next accruing monthly Rent installments due hereunder, or if no further installments are due from Lessee hereunder, such amounts shall be refunded directly to Lessee by Lessor and this obligation of Lessor shall survive the expiration or termination of the Lease. If Lessee shall fail to deliver such annual audited financial statement to Lessor within said one hundred twenty (120) day period, and such failure continues for ten (10) days after written notice from Lessor, Lessor shall have the right thereafter to audit or cause an audit to be performed, including without limitation an audit of all records required by Paragraph 13 of the Lease, as may be necessary to certify the amount of Gross Revenues for such rental year, and Lessee shall pay to Lessor the reasonable cost of the audit within ten (10) days of receipt from Lessor of the cost thereof. Any underpayment or overpayment of Percentage Rent identified in such audit shall be treated as provided above. E. Payment of Rent. All Rent and statements of Gross Revenues shall be paid and sent to Lessor at the following address, or such other address as may be designated by Lessor in writing: City of Miami Department of Finance 444 SW 2 Avenue, 6th floor Attention: Treasury Management/Receipts Miami, FL 33130 8. Gross Revenues Paragraph 12 of the Lease is hereby amended to read as follows: 12. Gross Revenues Defined. "Gross Revenues" means the gross selling price of all merchandise or services sold, leased, licensed or delivered in, from or arising out of the use of the Property and the Baywalk, Vista Point and Ceremony Deck (if constructed) by Lessee, or received by Lessee from its permitted licensees or concessionaires, whether for cash or on credit (whether collected or not), including the gross amount received by reason of orders taken on the Property although filled elsewhere, and whether made by store personnel or vending machines. Any transaction on an installment basis, including without limitation, any "lay -away" sale or like transaction, or otherwise involving the extension of credit, shall be treated as a sale for the full price at the time of the transaction, irrespective of the time of payment or when title passes. Gross Revenues also shall include any stuns that Lessee receives from all mechanical or other vending devices placed in or on Property, including but , not limited to: pay telephones, stamp machines, music machines, or amusement machines. Gross Revenues shall also include any deposit not refunded. Gross Revenues shall not include, or if included there shall be deducted therefrom (but only to the extent they have been included), the following: (1) The selling price of all merchandise returned by customers and accepted for full credit, or the amount of discounts, refi nds, and allowances made on such merchandise. (2) Merchandise returned to sources or transferred to another store or warehouse owned by or affiliated with Lessee. (3) Sums and credits received in the settlement of claims for loss of or damage to merchandise. (4) The price allowed on all merchandise traded in by customers for credit or the amount of credit for discounts and allowances made instead of acceptance of merchandise. (5) Sales and use taxes, so-called luxury taxes, consumers' excise taxes, gross receipt taxes, and other shnilar taxes now or in the future imposed on the sale of merchandise or services, but only if such taxes are 10 added to the selling price, separately stated, collected separately from the selling price of merchandise or services, and collected from customers. (6) Receipts from the sale of waste or scrap materials resulting from Lessee's operations on Property. (7) The costs or value of meals or discounts given to employees; for which no payment is received, payroll deduction made and no other direct consideration is received by Lessee. (8) The cost or value of food and beverages used for entertainment and promotion purposes. (9) The amount of gratuities given by patrons to employees of Lessee and banquet services charges paid to employees. Management or service fees retained by Lessee for managing and/or distributing gratuities shall be deemed part 'of Gross Revenues. (10) Parking gratuities collected at the Property. (11) Receipts from the sale of tobacco, cigarettes and cigars. (12) Receipts from the sale or trade-in value of any furniture, fixtures or equipment used on the Property. (13) Any sums deposited by Lessee into the Reserve Fund (as hereinafter defined). 9. Records, Accounts and Statements Paragraph 13 of the Lease is hereby amended to read as follows: 13. Records and Inspections. A. Records. Lessee shall maintain full and accurate books of account, records, cash receipts, and other pertinent data showing its Gross Revenues for the Property, together with copies of all sales and tax returns covering its operations at the Property, and any other govermnental tax or other returns related to the Property that show Lessee's sales therein. Lessee shall install and maintain accurate receipt -printing Point of Sale system(s) and shall record on the Point of Sale system(s) every sale and other transaction made from the Property. At all times during the Term, upon providing ten (10) business days prior notice to Lessee, all records and accounts and all other supporting records, shall be available for inspection and audit by the Lessor and its duly authorized agents or 11 representatives during the hours of 8:00 AM to 5:00 PM, Monday through Friday. Such inspection and audit shall be conducted at Lessor's cost and expense and in accordance with generally accepted accounting principles. Said inspection and audit of such records and accounts shall not occur more than two (2) times in any given calendar year. Lessee shall, upon demand, deliver photographic copies or computer disks of the information, if available, to the Lessor at no cost. The Lessee will cooperate with the Lessor's internal auditors (or such other auditors designated by Lessor) in order to facilitate the Lessor's examination of records and accounts, and Lessor agrees to use commercially reasonable efforts to minimize interference with Lessee's business operations during any such examination of Lessee's records and accounts. Such books of account, records, cash receipts, and other pertinent data shall be kept for a period of five (5) years after the end of each year of the Lease. The receipt by Lessor of any statement, or any payment of Percentage Rent for any period, shall not bind Lessor as to the correctness of the statement or the payment. B. City's Right to Audit. Notwithstanding the provisions contained in Paragraph 13 of the Lease requiring Lessee to provided annual audited statements, at its option, Lessor may cause, at its sole cost and expense, at any time within sixty (60) months of receipt of any Percentage Rent statement furnished by Lessee, and upon providing thirty (30) days written notice to Lessee, a complete audit to be made of Lessee and its subtenants, licensees and concessionaires' accounting records in connection with the sales on, from or related to the Property for the period covered by any such statement furnished by Lessee. If such audit shall disclose an underpayment of Percentage Rent, Lessee shall pay Lessor any unpaid balance within thirty (30) days of receipt of notice from Lessor that such balance is due. If such audit shall disclose an overpayment, Lessor shall credit such overpayment towards the next payment of Rent due, or if no further payments are due, Lessor shall promptly refund any overpayment to Lessee and this obligation shall survive the expiration or termination of the Lease. • 12 Lessee shall allow the Lessor or the auditors of the Lessor to inspect all or any part of the 'compilation procedures for the aforesaid monthly reports. Said inspection shall be reasonable and is at the sole discretion of the Lessor. The acceptance by Lessor of payments of Percentage Rent shall be without prejudice to Lessor's right to conduct an examination of Lessee's books and records and of its inventories of merchandise on the Property in order to verify the amount of annual sales made in and from the Property. Lessor shall not re-examine an accounting period which has previously been audited, unless it has reasonable cause, and may not go back further than sixty (60) months from the receipt of Percentage Rent. To the extent permitted by law, Lessor shall keep any information gained from such statements, inspection or audit confidential and shall not disclose it other than to carry out the purposes of this Lease, except that Lessor shall be permitted to divulge the contents of any statements in connection with any financing arrangements or sale of Lessor's interest in the Property. 10. Manner of Operation Paragraph 16 of the Lease is hereby amended to read as follows: 16. Manner of Operation. a. Lessee shall keep the restaurant .and cocktail lounge reasonably stocked with -food and beverage and reasonably staffed to serve the patrons thereof, and Lessee shall maintain a standard of quality of food and beverage and charge reasonably comparable prices at least equal to similar operations in the area. b. The facilities shall be, at a minimum, open for lunch and dinner seven (7) days a week, with the exception of national holidays or such other days that are approved in writing by the City Manager. Lessee may also close the restaurant during construction of improvements, if deemed necessary or appropriate in Lessee's reasonable discretion. In the event that the restaurant is closed for the construction of improvements as permitted hereunder, the Base Rent payable by Lessee shall be deferred for up to a maximum of three (3) months, and the amount of such deferred Base Rent shall then be payable by Lessee in twelve (12) equal monthly installments over the next twelve (12) months of the Lease Term. 13 c. Except where the Property is rendered untenantable by reason of fire or other casualty, -the Lessee shall at all times during the Term occupy and conduct operations of the Rusty Pelican on the Property in accordance with this Lease. 11. Maintenance and Repair Paragraph 18 of the Lease is hereby amended to read as follows: 18_ Maintenance, Repair and Alterations A. Duty to Repair. During the teen hereof, Lessee, at Lessee's expense, shall keep and maintain the Property and all improvements thereon in good and sanitary order, condition and repair consistent with the operation of a first-class quality restaurant in the Miami area. Upon expiration or termination hereof, Lessee shall surrender and deliver up to Lessor the Property and all permanent improvements thereon in good and usable condition, ordinary wear and tear and casualty damage excepted. B. Periodic Inspections. Within sixty (60) days of every fifth (5th) anniversary of the Execution Date, Lessee and Lessor, together, and with their respective consultants, shall conduct an inspection of the Property for the purposes of assuring that the Property is maintained in a first class condition. If necessary, Lessee and Lessor will each prepare a list of suggested repairs. The parties shall endeavor, in good faith, to reconcile their respective repair lists within a further sixty (60) day period. Any disputes shall be submitted to arbitration as provided hereinafter. Once reconciled/agreed, or an arbitration decision has been rendered, Lessee will, within 120 days, submit to Lessor plans for such repairs and, after approval thereof, will perform such repairs in an expeditious manner. The cost of such repairs shall be paid from the Capital Repairs, Replacements and Improvements Fund to be created pursuant to Subparagraph D below. C. Alterations and Additions. Lessee shall not make any alterations or additions to the Property exceeding the cost of One Hundred Thousand Dollars ($100,000) in each instance, shall not make any structural alterations or alterations to the exterior of the Property, shall not change the footprint of the Property or install any signage to the exterior of the Property, ("Alterations") 14 without the prior written approval of the City Manager, which approval shall not be unreasonably withheld or delayed. All permitted Alterations shall be completed free of liens and in accordance with all applicable legal requirements. The City Manager may impose, as a condition of the consent to an Alteration, such requirements as he/she, in his/her reasonable discretion, may deem desirable, including, but not limited to, obtaining bonds and Builder's Risk Insurance. Notwithstanding the foregoing, Lessor acknowledges and agrees that Lessee shall not be permitted to undertake the Required Capital Improvements as described on Exhibit `B" hereto without first obtaining the consent of the City Manager as required pursuant to Section 34.B of this Amendment. D. Capital Repair and Improvements. The parties recognize that the Property requires regular capital repairs to remain competitive in the marketplace. Therefore, commencing with the fourth anniversary date of the Execution Date, Lessee shall begin depositing a sum equal to 1.0% of monthly Gross Revenues into a separate Capital Repairs, Replacements and Improvements Fund (the "Reserve Fund"), to be maintained by Lessee in a separate account, and spent by Lessee on capital expenditures including the costs of any repairs to the Property and any improvements or equipment installed (including labor and materials, but excluding routine maintenance and landscaping payroll), the repair or replacement of restaurant. facility furniture, fixture and equipment ("FF&E"), and landscaping replacements and improvements. Any sums spent by Lessee on such capital expenditures in excess of the 1.0 % of Gross Revenues deposited by Lessee in the Reserve Fund in any one year shall be carried over and counted against the following year(s) and paid from future sums deposited into the Reserve Fttnd. Lessee shall submit annual reports to Lessor, detailing such expenditures, and Lessor may audit .such reports at Lessor's expense, within one (1) year of its receipt of any such report. E. Process for Resolving Disagreements. In the event of any unresolved dispute between the Lessor and Lessee regarding the Reserve Fund expenditures, the parties shall submit the dispute to arbitration conducted by the American Arbitration Association in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. Any such arbitration shall be 15 held and conducted in Miami, Florida before an arbitrator who shall be selected by mutual agreement of the parties. If agreement is not reached on the selection of the arbitrator within ten (10) days after one of the parties notifies the other in writing that it has elected to resolve the dispute through arbitration, then such arbitrator shall be appointed by the chief judge of the local state court. The provisions of the Commercial Arbitration Rules of the American Arbitration • Association shall apply to and govern such arbitration, with the exception that the decision of the arbitrator shall be final, and judgment may be entered on it in accordance with applicable law in any court having jurisdiction over the matter. 12. Destruction. Paragraph 19 of the Lease is hereby amended to read as follows: 19. Destruction. a. In the event the Property shall be damaged or injured by fire or other casualty during the term of this Lease, but the damages are not material (as defined below), Lessee shall repair the damage and restore the Property to the same condition as existed before such damage (or to as close as possible to .such condition taking into consideration then applicable building codes and requirements), and this Lease shall remain in full force and effect. Lessee shall commence repairs as soon as practicable (but not later than nine (9) months thereafter without the written consent. of the City Manager) and complete such repairs within a reasonable period of time. b. In the event the Property shall be damaged or injured by fire or other casualty during the term of this Lease and the damages are material (as defined below), then Lessee may elect not to commence repair of the Property, shall provide written notice to Lessor of its intent not to repair within ninety (90) days after the date of such casualty, and the proceeds of the insurance policy or policies covering such loss or damage shall be paid to the City of Miami and the Lessee as their interests appear, and this Lease shall be deemed terminated and the rent shall be payable only to the date that said Property is rendered untenantable. Notwithstanding the above, all insurance proceeds received for loss relating to furniture, fixtures and equipment and business interruption shall be paid to Lessee. 16 c. In the event the Property shall be damaged or injured by fire or other casualty during the term of this Lease and the damages are material (as defined below), but Lessee elects not to terminate the Lease, Lessee shall provide written notice to Lessor of its intent not to terminate within ninety (90) days after the date of such casualty, and repair the damage to the Property and restore the Property to the same condition as existed before such damage (or to as close as possible to such condition taking into consideration then applicable building codes and requirements), and this Lease shall remain in full force and effect. Lessee shall commence repairs as soon as practicable (but not later than nine (9) months thereafter without the written consent of the City Manager) and complete such repairs within a reasonable period of time. d. For purposes of this Lease, damage to the Property shall be deemed material if, in Lessee's reasonable judgment, the uninsured cost of repairing the damage exceeds One Hundred Thousand Dollars ($100,000) for losses as a result or windstorm, hail and excess flood and Twenty Five Thousand Dollars ($25,000) as to All Other Perils (AOP). If insurance proceeds are available to Lessee in an amount which is sufficient to pay the entire cost of repairing all of the damage to the Property, the damage shall be deemed material if the cost of repairing the damage exceeds Five Hundred Thousand Dollars ($500,000). Damage to the Property shall also be deemed material if (a) the Property cannot be rebuilt or repaired to substantially the same condition it was in prior to the damage due solely to laws or regulations in effect at the time the repairs will be made, (b) the holder of any mortgage encumbering the Lessee's leasehold interest in the Property requires that insurance proceeds available to repair the damage in excess of Twenty-five Thousand Dollars ($25,000) be applied to the repayment of the indebtedness secured by the mortgage, or (c) the damage occurs during the last twelve (12) months of the Lease Tenn. e. If Lessee elects not to terminate the Lease as a result of a casualty, but fails to conxunence repairs within nine (9) months following the occurrence of the casualty (without the written consent of the City Manager) then the Lessor, in addition to all other remedies available by law or in equity as a result of Lessee's default, shall have the right to treat Lessee's failure to commence repairs as 17 Lessee's election to terminate the Lease, whereupon the proceeds of the insurance policy or policies covering such loss or damage shall be paid to the Lessor and the Lessee as their interests appear. 13. Insurance. See Schedule I attached hereto and made a part hereof. 14. Notices. Paragraph 27 of the Lease is hereby amended to read as follows: 27. Notices. All notices shall be sent to the parties at the following addresses: LESSOR: The City of Miami, Florida City Manager 3500 Pan American Drive Miami, FL 33133 With copy to: and City of Miami City Attorney 444 SW 2 Avenue, 9th Floor Miami, FL 33130 Director of Public Facilities Department 444 SW 2 Avenue, 3rd floor • Miami, FL 33130 LESSEE: Biscayne Bay Restaurant Corporation 8191 East Kaiser Boulevard Anaheim, CA 92808 Attention: President With copy to: Same Address Attention: General Counsel Lessor or Lessee may change such addresses at any time upon giving the other party at least ten (10) days prior written notification. All notices under this Lease must be in writing and shall be deemed to be served when delivered to the address of the addressee. All notices served by mail shall be registered or certified mail, return receipt requested. Lessee may designate additional persons for notification of default. 18 15. Capital Improvements -A new Paragraph 34 is hereby added to read as follows: 34. Capital Improvements. A. Lessee's Capital Improvements. In consideration of Lessor's entering into this Amendment, Lessee has agreed to construct the Required Capital Improvements. Lessee agrees to complete the Required Capital Improvements in three (3) phases as more particularly described on Exhibit "B". The parties have further agreed that certain additional optional capital improvements may be constructed by Lessee on the Property as described in Exhibit "B" (the "Optional Capital Improvements"). The Required Capital Improvements and the Optional Capital Improvements are collectively referred to as the "Lessee's Capital Improvements". Lessor acknowledges and agrees that any applications for permits for the Baywalk (to be completed as a Required Capital Improvement) shall be made by Lessee with the Lessor as the named applicant or co -applicant, as required by law. Lessee agrees to make such changes to the Baywalk permit applications as may be necessary to obtain the Baywalk permits. The work described in each of the items listed as numbers 1 through 6 in Phase I, 1 on Phase II, 1, 2 and 3 in Phase III and 1 and 2 of the Optional Capital Improvements, as described in Exhibit "B,", shall be referred to herein as a "Project". Subject to Lessee receiving Lessor's approval pursuant to Paragraph 34.B. below and all necessary approvals and permits from all applicable Governmental Authorities, on a Project - by -Project basis, Lessee shall cause to be constructed and/or installed the Required Capital Improvements. Lessee agrees that the total aggregate cost of the Phase I Required Capital Improvements shall be not less than Three Million Dollars ($3,000,000), including costs of . permits, architectural, engineering and other professional fees and related costs. B. Plans and Specifications. Lessee shall furnish plans and drawings for the Lessee's Capital Improvements to the City Manager or his designee for approval. The City Manager's approval shall not be unreasonably 19 conditioned, delayed or withheld, and shall be communicated by the City Manager or his designee to Lessee within fifteen (15) days after Lessee's submittal of the applicable plans and drawings. The plans and drawings shall be prepared by a licensed architect and in sufficient detail to obtain a building permit from the City of Miami. C. Completion of Lessee's Capital Improvements. Lessee shall apply for, and shall use good faith diligent efforts to obtain, all applicable permits for the Phase I and Phase II Required Capital Improvements within twelve (12) months after the Execution Date. With respect to the Phase II Required Capital Improvements, and provided Lessee has applied for, and has used good faith diligent efforts to obtain, such permits within the time stipulated herein, Lessor agrees to extend the time in which to obtain such permits for such time period as is reasonably necessary to obtain any required permits from the U.S. Army Corps of Engineers, the Florida Department of Environmental Protection, the South Florida Water Management District and/or the Miami -Dade County DERM Coastal Resources Section for any portion of the Lessee's Required Capital Improvements that will extend beyond the mean high water line or that may impact coastal wetlands. Lessee agrees that Lessee will periodically (at least once every 4 months from the Execution Date) provide the Lessor with documentation evidencing that Lessee and its agents are making consistent and substantial progress in the permitting process, and Lessor agrees that so long as Lessee demonstrates that Lessee or its agents' are malting consistent and substantial progress in the permitting process, Lessee's date for obtaining the permits and for,completion of the Phase II Required Capital Improvements shall be appropriately extended. Notwithstanding the foregoing, Lessor expressly acknowledges and agrees that the Phase III' Required Capital Improvements cannot be completed until such time as the Lessee is provided with alternative dedicated parking on Virginia Key that can accommodate the required parking that will be lost as a result of the Required Capital Improvements. For this reason, Lessee shall not be required to commence construction of the 20 Phase III Required Capital Improvements until the New Parking Facility described in Section 16 of this Amendment, creating a new Paragraph 35 of the Lease, is substantially completed. In the event the New Parking Facility is not built, then Lessee shall have no obligation to construct the Phase III Required Capital Improvements. Lessee shall obtain applicable permits for, and complete the Phase III Required Capital Improvements, within six (6) months after the New Parking Facility has been substantially completed and is available for Lessee's use, as evidenced by a Temporary Certificate of Occupancy (TCO), or a Certificate of Occupancy (CO), if no TCO is issued, or a certificate of completion, if no CO is required. With respect to the Phase I Required Capital Improvements, Lessee shall substantially complete construction of each Project in an expeditious manner but no later than twelve (12) months of obtaining a building permit for each such Project, but in no event later than two (2) years from the Execution Date. With respect to the Phase II Required Capital Improvements, Lessee shall substantially complete the same in an expeditious manner, subject to the extensions allowed for obtaining permits in this Section 34.C., but no later than twelve (12) months of obtaining a building permit. D. Performance Bond. As assurance for the faithful and timely performance and construction of the Lessee's Capital Improvements, Lessee shall, prior to commencement of construction of each Project in excess of $200,000, furnish Lessor a bond (or such alternate form of security, such as a letter of credit, as may be approved by Lessor) in the amount of 100% of the cost of each Project. The surety on said bond (or issuer of any alternate forrn of security) shall be subject to the approval of the City Manager, which approval shall not be unreasonably withheld or delayed. The bond (or alternate form of security) shall be released by Lessor upon completion of each Project of Lessee's Capital Improvements as evidenced by providing fmal release of liens, the issuance of a TCO, or a CO, if no TCO is issued, or a certificate of completion if no CO is required. 21 16. New Parking Facility. A new Paragraph 35 is hereby added to read as follows: 35. New Parking Facility. A. The New Parking Facility. Lessor expressly acknowledges and agrees that Lessee shall have no obligation to undertake any of the Phase III Required Capital Improvements unless and until a new parking facility is constructed, and at least 220 parking spaces within such facility are available for Lessee's use, at no cost to Lessee, during the remaining term of the Lease.. The 220 parking spaces must be able to be accessed by the Lessee over a direct roadway between the Rusty Pelican and such new parking facility that does not require the Lessee to access the Rickenbacker Causeway (the "New Parking Facility"). The location of the New Parking Facility and the access road between the New Parking Facility and the Rusty Pelican are as shown on Schedule 2 attached hereto. B. Construction and Operation. If the Lessor elects to construct, or cause to be constructed, the New Parking Facility, then it shall be constructed, operated and maintained solely by the Lessor, MPA (as hereinafter defined), or some other entity, in Lessor's sole discretion, and Lessee shall have no obligation to operate, repair or maintain the New Parking Facility. Lessee acknowledges that Lessor intends to assign its obligations to construct the New Parking Facility under this Paragraph 35 to MPA, as provided in Sub -paragraph D. below, and upon Lessor's assignment and MPA's assumption of all of Lessor's obligations to construct the New Parking Facility in accordance with the terms of this Amendment, Lessee agrees to recognize that MPA may perform Lessor's obligations with respect to the New Parking Facility under the terms of this Amendment. C. Construction Contribution. In order to facilitate construction of the New Parking Facility, Lessee agrees 'to contribute to the Lessor the amount of $4,000,000.00 (the "Construction Contribution"), which represents 66.5% of the estimated cost of construction of the New Parking Facility. Lessor agrees to provide Lessee with copies of any documents or drawings prepared for Lessor as part of the design and construction 22 process for the New Parking Facility, together with any other documentation reasonably requested by Lessee related to the design and construction of the New Parking Facility. Lessor further agrees that in consideration of Lessee's agreement to make the Construction Contribution, Lessor will seek Lessee's input with respect to the design, layout, location, ingress, egress and access to the New Parking Facility and Lessor agrees to take Lessee's requested revisions into consideration in the final plans and specifications for the New Parking Facility. The Construction Contribution will be paid by Lessee to Lessor in installments as set forth below. Lessee acknowledges and agrees that its failure to pay the Construction Contribution, as herein provided, shall be a default by Lessee under the Lease. (a) The first installment of the Construction Contribution (up to $240,000) shall be used by the Lessor to pay for the costs to design the New Parking Facility and for pre -development costs (the "Soft Costs Installment"). Lessee shall pay the Soft Costs Installment to Lessor within ten (10) business days of its receipt of Lessor's written request for the Soft Costs Installment and Lessor may request such payment at any time after the Execution Date. Lessor acknowledges and agrees that Lessor will use the Soft Costs Installment solely to reimburse any third party design professionals retained by the Lessor for :the design of the New Parking Facility and for pre -development costs, including the cost of environmental testing and remediation, if any. (b) The remaining installments of the Construction Contribution (the "Construction Installments") shall not be due and payable by Lessee until Lessee receives Lessor's written confirmation ("Lessor's Written Confirmation") that: (i) the design of the New Parking Facility has been completed, (ii) Lessor has identified funds available for the construction of the New Parking Facility and (iii) Lessor intends to start construction of the New Parking Facility within one hundred twenty (120) days from the date of the written confirmation. Lessor agrees that it will also deliver to Lessee such reasonable supporting documentation as may be requested by 23 Lessee to document that Lessor has met the conditions for the Construction Installments as set forth in the preceding sentence. (G) Lessee agrees to pay the Construction Installments in accordance with the Virginia Key Parking Draw Down Schedule attached hereto as Schedule 4 (the "Draw Down Schedule"). The amount of each payment by Lessee to Lessor shall be based upon the actual costs then incurred by Lessor for the construction of the New Parking Facility ("Disbursements") and no Disbursement shall exceed the applicable monthly amount set forth in the Schedule for the Disbursement for the month in question. In the event that the actual cost to construct the New Parking Facility is less than $6,000,000.00, Lessee's acknowledges that its contribution shall not be reduced. Instead, the difference between Lessee's Construction Contribution and 66.5% of the actual cost of the construction of the New Parking Facility shall be paid by Lessee as its last installment of the Construction Contribution, and shall be placed by Lessor in an account for the maintenance of the New Parking Facility. Lessee shall not be required to make more than one Disbursement during any one calendar month. (d) Lessee agrees to make a requested Disbursement not later than ten (10) business days after Lessor delivers to Lessee a written certificate (the "Certificate") from the architect selected by the Lessor to design the New Parking Facility (the "Architect") setting forth, with respect to each request for disbursement: (i) the amount of,the Disbursement being applied for; (ii) the previously requested amounts; (iii) the estimated amounts rema'ning to complete the New Parking Facility; (iv) the percentage of the New Parking Facility that has been completed as of the date of the request; (v) a statement that all amounts previously disbursed and currently requested have been or will be disbursed by the Lessor in a timely manner solely in payment of costs associated with the New Parking Facility; 24 (vi) a statement that the sum then requested is payable to the contractors, subcontractors, materialmen, engineers, architects or others who have rendered or furnished services or materials for the New Parking Facility; (vii) a statement that no work performed or materials supplied for the New Parking Facility which is the basis for the current Disbursement request has been the basis for any previously paid Disbursement; (viii) a statement that in the opinion of the Architect and/or Contractor, the New Parking Facility can be substantially completed in accordance with the budget and by the completion date set forth in the Schedule, as same may be extended by change orders or events of Force Majeure; (ix) a statement that there have been no material changes to the scope of work for the New Parking Facility; (x) a statement that the representations and warranties made in the Disbursement request are true and correct as of the date made; (xi) in reliance on lien waivers received, full payment has been made of all obligations inctured by the Lessor to contractors, workmen and materialmen for and with respect to all work and materials supplied through and including the date of the last Disbursement request, except for the amount of any customary retainage being withheld; and (xii) for all dollar. amounts requested in the Disbursement request, an invoice or a copy of an invoice as backup. Lessor expressly acknowledges and agrees that in the event that a New Parking Facility is not open for Lessee's use within three (3) years from the date that Lessee delivers the first of the Construction Installments to Lessor, that Lessor shall be in default under the Lease and Lessee shall have the right to file suit against Lessor for such default. 25 Lessor agrees that at the same time that Lessee makes the first Construction Installment payment to Lessor, Lessee may file, in the Public Records of Miami - Dade County, Florida, a notice of Lessee's interest to use at least 220 parking spaces in the New Parking Facility at no charge to Lessee during the term of the Lease. The notice to be recorded shall be substantially in accordance with the form of notice attached as Schedule 5 hereto. (e) Lessor agrees to complete construction of the New Parking Facility within three (3) years from the date that Lessee delivers the first of the Construction Installments to Lessor. Lessee acknowledges and agrees that at any time during the tern of this Lease but subsequent to the date of Lessor's Written Confirmation, upon Lessor's written request, Lessee will provide Lessor with reasonable evidence that Lessee has funds available to make the Construction Contribution required under the Lease. Lessee further acknowledges and agrees that Lessee's failure to make any of the instalhnent payments for the Construction Contribution in accordance with the terms of this Section 35 shall be a default by Lessee under the Lease. Lessor further acknowledges and agrees that notwithstanding anything to the contrary contained in the Lease or in this Section 35 to the contrary, in the event that Lessor has not commenced construction of a New Parking Facility pursuant to a full building permit within ten (10) years after the Execution Date, Lessee shall have no obligation to pay any portion of the Construction Contribution to Lessor. (f) Lessor agrees that in the event Lessor constructs another parking facility in a location that is closer to the Rusty Pelican than the New Parking Facility (a "Closer Parking Facility"), the Lessee shall have the option to transfer its right to use 220 parking spaces in the New Parking Facility (or some portion of the 220 parking spaces) to the Closer Parking Facility, when the Closer Parking Facility is completed and Lessee, shall be entitled to use 220 parking spaces (or the portion of its 220 parking spaces that are transferred to the Closer Parking Facility) at no charge to Lessee. Lessee shall exercise this right to transfer the use of parking spaces to the Closer Parking Facility at no charge to the Lessee not later 26 than 90 days after Lessee's receipt of Lessor's written notice offering spaces in the Closer Parking Facility. D. Assignment of Lessor's Rights and Obligations under this Paragraph 35. Lessee acknowledges Lessor's intent to assign all of Lessor's rights and obligations under this Paragraph 35, including, without limitation, the right to receive Lessee's Construction Contribution, (the "Assignment") to the Department of Off -Street Parking of the City of Miami (MPA) and upon Lessor's assignment and MPA's assumption of all of Lessor's obligations to construct the New Parking Facility in accordance with the terms of this Amendment, Lessee agrees to recognize that MPA may perform Lessor's obligations with respect to the New Parking Facility under the terms of this Amendment. 17. State Approval. A new paragraph 36 is hereby added as follows: 36. State Approval. Lessor and Lessee acknowledge that a portion of the Land is subject to certain restrictions contained in Deed No. 18030 made by the Trustees of the Internal Improvement Fund of the State of Florida to the City dated July 23, 1929. Lessee agrees to use good faith diligent efforts to obtain from the State of Florida • a finding of compliance with the deed restriction or a waiver of compliance with such deed restriction ("State Approval"). The date of issuance of the State Approval is referred to herein as the "Effective Date". Lessee acknowledges that if the State Approval is not obtained within one (1) year following the Execution Date, unless otherwise extended by the City Manager, •as hereinafter provided, then the term of the Lease shall expire on October 1, 2012, The City Manager may extend the one (1) year period in which .to obtain. State Approval, in its reasonable discretion, by two (2) additional periods of six months each. 18. Safety. A new paragraph 37 is hereby added as follows: 37. Safety. Lessee will allow City inspectors, agents or representatives the ability to monitor its compliance with safety precautions as required by federal, state or local laws, 27 rules, regulations and ordinances. By performing these inspections the City, its agents, or representatives are not assuming any liability by virtue of these laws, rules, regulations and ordinances. Lessee shall have no recourse against the City, its agents, or representatives from the occurrence, non-occurrence or result of such inspection(s). 19. Americans With Disabilities Act. A new paragraph 38 is hereby added to read as follows: 38. Americans With Disabilities Act. Lessee shall affirmatively comply with all applicable provisions of the Americans with Disabilities Act ("ADA") in the course of providing any work, labor or services funded by the City including Titles I and II of the ADA (regarding nondiscrimination on the basis of disability) and all applicable regulations, guidelines and standards. Additionally, Lessee shall take affirmative steps to ensure nondiscrimination in employment of disabled persons. 20. Force Maicure. A new paragraph 39 is hereby added to read as follows: 39. Force Majeure. In the event that the ability of the parties hereto to perform their respective obligations under this Lease are rendered impossible or impractical by acts of God (including fire, flood, hurricane, windstorm, and/or earthquake), war, civil unrest or strife, terrorist acts or threats, or labor shortage, walkouts, unrest or stoppages and other conditions or causes beyond such party's reasonable control ("Force Majeure"), then the time or times for the performance of the obligation so affected (except for the payment of rent) shall be extended for such time until such Force Majeure condition ceases, provided, however, that either party shall have the right to terminate the .Lease in the event that a Force Majeure condition delays performance of the Lessee's obligation to complete the Phase I Required Capital Improvements by a period in excess of one (1) year, or in the event that a Force Majeure condition delays performance by either party of any other obligation hereunder so affected by a period in excess of three (3) years. 28 21. No Defaults. Lessor and Lessee hereby acknowledge and agree that neither is aware of any existing defaults by reason of any act or omission on the part of the other party under the Lease and that each party has fulfilled all of its duties and obligations under the Lease to date, 22. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all together of which shall constitute one and the same document. 23. Amendment. Lessor and Lessee acknowledge and agree that except as specifically modified hereby, all of the provisions of the Lease which are not in conflict with the terms of this Amendment shall remain in full force and effect, 24. Additional Parking Commencing on the Execution Date through the completion of construction of the New Parking Facility, Lessor shall make available for use by the Lessee, (i) 50 parking spaces within the Rickenbacker Marina site and (ii) 60 parking spaces at the Miami Marine Stadium site (the "Additional Parking Spaces"). The Additional Parking Spaces shall be located generally in the areas identified on the Sketch attached as Schedule 3 hereto. In the event the New Parking Facility is not constructed, Lessor agrees to continue to provide such number of Additional Parking Spaces as may be at that time required by applicable law to accommodate any parking lost as a result of Lessee's Required Capital Improvements, if any. The Lessor acknowledges and agrees that the Lessee's ability to commence construction of the Public Baywalk portion of the Required Capital Improvements is expressly conditioned upon the Lessor's making the Additional Parking Spaces available for Lessee's use. In the event that such Additional Parking Spaces are not available for Lessee's use at any time after the Execution Date, Lessee's obligation to complete the Public Baywalk portion of the Required Capital Improvements shall be extended for a reasonable and equitable period of time, taking into consideration the length of the delay in the construction of the Public Baywalk resulting from the fact that such Additional Parking Spaces were not available to Lessee, but at a mininnun, at least one day of extension for each day that the Additional Parking Spaces are not available for Lessee's use. 29 LeeAnn Brehm, Director Risk Management Department Attest: By‘-e0.2-.2 . /,e5 Ue . ineery,/6(_ecee.752,e4ssisixkYi Print Name and Title Date 30 above written. Attest: WITNESS WHEREOF, the parties have executed this Lease as of the date first "LESSOR" CITY MI, a municipal corpora i n of the State of Florida By: � Priscilla A. Thompson / fh6 Pedro G. Hernandez, City Manager APPROVED AS TO INSURANCE APPROVED AS TO FORM AND RETS: By: Julie ti2 City Attorney CORRECTNESS: u, "LESSEE" BISCAYNE BAY RESTAURANT CORPORATION By: ��� Howard Bell, 0 Date EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY Commence at the southeast corner of Section 17, Township 54 South, Range 42 East; thence run north 89° 56' 49.5" west for a distance of 2,649.84 feet, more or less, to a point of intersection with the .center line.of Rickenbacker Causeway as shown in Plat Book 74, at Page 9, Sheet 2, of the Metropolitan Dade County Bulkhead Line; thence run north 45° 22' 07" west along said center line of Rickenbacker Causeway and its northwesterly prolongation thereof for a distance of 4,700.21 feet to a point; thence run north 44° 37' 53" east for a distance of 520.00 feet to the Point of Beginning of the hereinafter described tract; thence run north 45° 22' 07" west for a distance of 1024.4 feet to a point; thence run north 44° 06' 48" east for a distance of 250.00 feet to a point; thence run south 45° 22' 07" east for a distance of 1026.66 feet to a point; thence run south 44° 37' 53" west for a distance of 250.0 feet to the Point of Beginning. EXHIBIT "B" REQUIRED CAPITAL IMPROVEMENTS: Phase I: 1. Vista Point construction. 2 New Banquet Room and other space totaling approximately 4,500 SF of Gross A/C Space. 3. Exterior Improvements. 4. Interior Improvements. 5. Public Baywalk, at grade connected to Vista Point (North side of the Parking Lot) and continuing around the Building (as shown on Exhibit B-I hereto) and subject to the terms of Section 23 of the Lease Amendment. 6. Reconfigured Existing Parking Lot. All as more particularly described in the plans for the Phase I improvements attached hereto as Exhibit B-I hereto. Phase II: 1. Extension of Public Baywalk around the Building as more particularly described in the plans for the Phase II improvements attached as Exhibit B-II hereto and any other portion of the Phase I improvements that may require Lessee to obtain permits from the U.S. Army Corps of Engineers, the Florida Department of Environmental Protection, the South Florida Water Management District and/or the Miami -Dade County DERM Coastal Resources Section. Phase III (Pending City Providing Alternate Structure Parking): 1. Lessee participation/investment in new parking structure, subject to the terms of Section 34.E. of the Lease Amendment. 2. Reconfigured Parking Lot with enhanced green space, as per plan. 3. Extension of Public Baywalk at grade (South Side of the Parking Lot). All as more particularly described in the plans for the Phase ITT improvements attached as Exhibit B-III hereto. OPTIONAL CAPITAL IMPROVEMENTS: 1. Ceremony Deck - (Fixed or Floating) 2. Water Taxi Dock (2 Slips) All as more particularly described in the drawings for the Optional Capital Improvements attached as Exhibit B-IV hereto. EXHIBIT "B-I" Phase I Required Capital Improvements Exhibit I'B-I" 1026.66' 54572 07'E VIA. POI Pul - `` }� AL\ f�" � � �� -C a� III!I!!III I� 1111II lllllilllulnl li illlulllmuull!Illu!lullluu!11 �� � nrim.■i1 �i/l�b /� ) .I�-11I I!!!IIIIIIIIIVIII!IIQIlflll�ll!!IIU111f11111111U1�11111!111�I1i11f�11ll11i9M�11161i1i�fi�!i(lily!I�Ilail�ll�iillilll�llAilit➢Ill�ll!�III�IVII�I��IU �'�° o®� II I 11�r. CI I I I III I I I 1 I I .1WArd 1024.40' RUSTY PELICAN RESTAURANT 3201 Rlckenbacker Causeway Key Biscayne - Florida 33149 ZYSCOVICH O ARCHITECTS hb net o ad.Y.anpuieas,,raamkmhen d..m.a dtlui.Arena !WWI bnpn s M.Ooltl. Mans .L'npm.ab dawayth fir• h9.01 hams delAae.a.i.V iDmMh hz AI moth:. named mao 1ImitI101111111111111.111111A11111111D 1 N45'22'07W UMW PwA;ANA Scab) -1'..60-0' P.0 Phalo 1A &mid Rost September01, 2009 EXHIBIT "B-II" Phase II Required Capital Improvements Exhibit '9S-II" Petit Widow 1026.56' S45'22.02"E Odle fb4 ! Boni . Yhb Pell _.r- ` /ter 10:e!,1 �n 11 �i ] IDlllluui!�IIII� Llu�l I III, I �lullll�m uu i!!ulll�ill�lllu� II!��uul TRUSTY PELICAN RESTAURANT 3201 Rlckenbacker Causeway Key Biscayne - Florida 33149 ZYSCOVICH A R C N I T E CT 3 .1.1= vebmtmlbedebeobndVas dadae b•IMrbpdYearwbCfebepnnrmano tabuf&MN faNdews hazed De door anpepebdDaath bcllpyyM norm! CM Flail War be 1024.40' !!iINIIIIIII��!Ni111111111N1�!!!!!!!!!!!!!!!II!111111111!111111111111NIIIII 11 111l 111 111111 I 1111111u11 i 11-11l,l1111111r� �11111111110 11 111111 Al 11111111t71I1II1IID 1 n 1 1 N4522'07"W Sorb -1•-60e-0• P.0.8. Phase iS 9rorerd Floor September 01, 2009 EXHIBIT "B-III" Phase III Required Capital Improvements Exhibit 1026.66' S4512'07'E ����",�1/1,;l1/'''' Per Prrman Gammclr Yawn Mew am O NI 1111'III10dll111111{!111111111111111111111111111h1111!111111 C IIIII llllllilll 'SILO O�b,./IL I o ol6moa�lmat OOu r _ I[ III Obi 11 111911111!11h1111111!111!!!1111!1101I!Iflllll!8IIIIIIIII!!Mllll'! !IIIIIENIIINIENd!!Ali!IBI!!R!!VIIII!IIII!IllgllllEMI kl n PerrMm MGe :meld Pop ltm lYrEer►M to IIIIIOIIgIl01111Ilgllqqqllqllql Ig9gll�lll ql llg11g4AI1111q11llqliqlqlllqqqiqll '� a.a _ v� \ I '� •. \ Q ®1�IIR � Isl dTA`"AVlTdTd�e�dl Ngglqqlll�IllqNllIIIIIIIIII111W ,���:� nu wiliiitibhIIL'� I'ulllgUlliilllllllllllllgllummleY;';uui�e��rw"-'�IUInINIgIII111111111111111gINIIIIIIgUllumnulqP�ll➢Ilullmum un�i!`:—, s�:�"� ��"�"' '�"'- N45' 2'07"W 1--"-zieagr~Is 1024.40' Yw enrEdna Gemllpnlls PUMe Webeey wpm Pm* Ana ` RUSTY PELICAN RESTAURANT 3201 RlcKenbackar Causeway Key Biscayne - Florida 33149 ZYSCOVICH ARCHITECTS lbedm mrmhwrm roedaba creme* m.nra d.nivaaa ems MA= bow arepeaem*Wafem exkeismerrerrnrhre'IIearM rm AIMega eahaehmrdeloe npoebelam.01ls Ilo mle'anrrp eDxa Scale .ram Ram 2 ®read Row September q1. 2009 EXHIBIT "B-IV" Optional Capital Improvements EXTER OR DES GN SIGNAGE 3201' Rickeriba6keriCatiseway— .... • ; 4 6r, r7W. 37,bl - ... - • "I's' SCALE: rits .,AI—$1,, 3Tc131-13c3 Schedule I Paragraph 21 of the Lease is hereby amended to read as follows: 21. Insurance. A. At all times during the Lease Term, Lessee shall, at Lessee's sole cost and expense but for the benefit of Lessor and Lessee as their interests may appear, maintain in full force and effect the following insurance: 1. Property Insurance. Lessee shall submit to the City a certificate of insurance affording coverage for Real and Personal Property insuring against "All Risk" of direct physical loss or damage, including, but not limited to the perils of windstonn, hail, earthquake and flood, if commercially available. In addition, the certificate must provide coverage for debris removal, law and ordinance coverage to include coverage for loss or undamaged portion of the building, demolition costs and increased costs of construction, mold coverage, if commercially available, sprinkler leakage, equipment breakdown/boiler and machinery protecting against costs of repairing or replacing a broad range of equipment, technology and machinery essential to the operation of the lessee, as well as business interruption and extra expense, along with coverage for extended Business Income for a period of at least 180 days and contingent business income, if applicable, written on an adequate monthly limit of indemnity, actual loss sustained, or agreed value, whichever is broader, to insure payment of all operating expenses, including payroll, during the period of restoration or extended period of indemnity. All properfcoverage must be written on a replacement cost basis and no coinsurance provisions. Deductibles are as follows: All Other Perils up to $25,000. Wind and Hail will be subject to a maximum of 3%, with a minimum deductible of $100,000, if commercially available, and up $100,000 deductible on Excess Flood, if commercially available. The City of Miami shall appear listed 'as named insured/additional insured and loss payee on the property certificate. The cancellation provision should read (30) days, (10) for nonpayment of premium. Special Considerations for Property and Windstorm Insurance. Notwithstanding the foregoing, the parties acknowledge and agree that coastal properties are often precluded from being insured by private insurers and that any casualty and windstorm insurance may have to be written through the Florida Joint Underwriters Association and/or other governmental or other insurance pool which may include certain prohibitions such as no replacement cost coverage and/or modifications to "deductibles", and Lessor agrees to accept such policies, coverage and/or modifications as are reasonably commercially available to Lessee. Adjustments to Amount of Insurance. v. From time to time during the terra of the Lease, Lessor shall have the right to require Lessee to obtain such additional insurance or to increase the amount of the coverage required hereunder so that that. it is substantially similar to the insurance that is customarily carried by owners or operators of other comparable restaurant operations in the geographical area of the Property. vi. Notwithstanding the Lessor's right to request increases as set forth in v. above, upon completion of each Phase of the Lessee's Capital Improvements listed on Exhibit "B" hereto, the Lessee shall increase its property insurance to reflect the increased replacement cost of the Improvements and shall obtain additional windstorm and flood insurance in the same ratio to building and content value in effect at the time of execution of the amendment, subject to the limitations set forth in Paragraph A(1)(iv) above. vii. Notwithstanding the above, unless expressly waived in writing by the City Manager, commencing on September 1, 2013 and every four years thereafter, the replacement cost of the Insured Property shall be adjusted pursuant to an appraisal conducted by an insurance appraiser, selected and paid for by the Lessee, provided that the Lessee shall obtain the Lessor's approval (which approval shall not be unreasonably withheld, conditioned or delayed) of the appraiser before commencement of the appraisal. The appraiser selected by the Lessee shall submit a written report of the appraised replacement cost to the Lessor and the Lessee by July 15th in the year of the adjustment. If the Lessor or the Lessee is not satisfied with this report, the dissatisfied party shall serve upon the other a notice of dissatisfaction within thirty (30) days after receipt of the report and parties shall in good faith attempt to resolve any disputes concerning the appraised replacement cost. During this period of the dispute, the Lessee shall continue to maintain insurance in an amount equal to the greater of the amount determined by the appraiser or that maintained before the dispute arose. The Lessee shall procure and deliver to the Lessor written confirmation from the insurer(s) evidencing the increase in insurance which may be required to comply with the provisions above which increase in insurance shall be effective September 1 of the same year in which the appraisal is made. For those years in which an appraisal adjustment is made, there shall be no increase to the insured amounts pursuant to section v. above. B. Other Insurance To Be Carried. Lessee shall also, at Lessee's sole cost and expense but for the mutual benefit of Lessor (with Lessor being named as an additional insured thereunder) and Lessee, maintain the following insurance: 1. CGL Insurance- The lessee shall provide the City with a certificate of insurance with respect to Commercial General Liability affording coverage against all claims demands, or actions as a result of bodily injury or property damage occurring in or about the property. The certificate must include coverage and protect against exposures such as premises and operations liability, contingent liability, contractual liability, products and completed operations, and personal and advertising liability with limits of $1,000,000 per occurrence, with a $2,000,000 aggregate limit . The coverage must be written on a primary and non contributory basis, and must include the City as an additional insured pursuant to endorsement CG 2010 (11/85), or its equivalence. Waiver of subrogation must be included in favor of the City. In addition, the certificate must include coverage for liquor liability with limits of at least $2,000,000. However, Lessee is granted permission to use the umbrella excess for additional limits if underlying policy contains $1,000,000 limits. The certificate should have a maximum deductible of $25,000, and must reflect (30) days on the cancellation provision, except for (10) days for nonpayment of premium. 2. Automobile Liability- The lessee shall provide the City with a certificate of insurance including coverage for all owned, hired and non owned autos with a combined single limit of $1,000,000, including coverage for employees as insureds, and further listing the City as an additional insured. The certificate must reflect (30) days on the cancellation provision, except for (10) days for nonpayment of premium. 3. Workers' Compensation- The lessee shall provide workers' compensation and occupational disease in accordance to Florida Law. The certificate must specify coverage for employer's liability as follows: . $1,000,000 each accident, each employee, $1,000,000 disease each employee, $1,000,000 disease policy limit. The City will only appear as certificate holder on this coverage. The certificate must include (30) days on the cancellation provision, except for (10) days for nonpayment of premium. 4. Umbrella Policy- The lessee shall maintain in force an umbrella policy, and provide the City with a certificate of insurance on this coverage with limits of $10,000,000 per occurrence, $10,000,000 aggregate limit. The umbrella must be issued on an excess follow form, or true excess follow form, or true umbrella form, and must include the City as an additional insured. The cancellation provision must read (30) days, except for (10) days nonpayment of premium. 2. Builder's Risk. During periods of excavation and/or construction or during periods of alteration or during periods of restoration in the event of damage or destruction or condemnation or during periods of razing or demolition at, in or on the Property, the improvements or any part of it, an all risk Builder's Risk policy (including extended coverage for fire, lightning, earth movement, flood, collapse, business interruption, hurricane, boiler and machinery) covering the interests of Lessor and Lessee. Such policy shall insure that portion of the improvements which is affected by such excavation and/or construction for not less than One Hundred Percent (100%) replacement cost on a completed value basis (including foundations and pilings of the restaurant building), as well as the contingent liability from the operation of buildings, and coverage for the demolition cost of undamaged portions of buildings. This Builder's Risk coverage may be satisfied by an overall policy covering "additions" made to the buildings on the Property or Installation Floaters coverage. 3. E & 0 Coverage. Lessee shall cause all of the key or primary professionals retained by it in connection with any construction (e.g., architects and engineers) to procure Professional Liability/Error's & Omissions Coverage ----errors and omission coverage reasonably satisfactory to Lessee for Lessee's and Lessor's benefit, in such amounts as are customarily carried by such professionals in Miami -Dade County, Florida. As of the Execution Date, One Million Dollars ($1,000,000) in coverage is per claim/$1,000,000 aggregate is acceptable to Lessor. The certificate must specify retro date of coverage and must list the City as certificate holder only. 4. Coverage. The Lessor's Director of Risk Management shall have the right to require insurance coverage for terrorist acts, if such coverage is available in the insurance market, at a reasonable cost, with such limits and deductibles • to be approved by the Director of Risk Management. 5. Other Coverage. In the event that any other type of legislation may be enacted imposing special liability upon Lessor or Lessee by virtue of Lessee use of the Property for any special purposes, before Lessee shall so use the Property and/or the improvements or any part of it for such purposes, Lessee shall provide insurance in form and substance, and with insurers and limits reasonably satisfactory to Lessor's Director of Risk Management and meeting commercial standards insuring the interests of Lessor and Lessee and naming Lessor as additional insured. 6. •Amendment to Coverage. The Lessor's Director of Risk Management shall have right to request that Lessee reasonably amend the herein insurance requirements (so that they substantially conform with the insurance coverage maintained by other similarly situated property owners in the vicinity of the Property) by the issuance of a notice in writing to Lessee at least 90 days in advance of the renewal date on the insurance policy in question. Such amended coverage shall be procured by Lessee no later than the time for renewal and/or procurement of its next insurance policy. C. Policies Obtained by Independent Contractors. The lessee shall require its' contractors to produce certificates of insurance with coverage acceptable to the City. The contractor shall include the lessee and the City as an additional insured on all its liability policies in connection to any work performed by the contractor on behalf of the lessee. The lessee may at its own discretion provide builder's risk coverage for a constructionproject, or it may designate the contractor to do so. The lessee will require contractor to list the City and lessee as an additional insured on this coverage. i) Required Policy Provisions. All policies of insurance required to be provided and obtained shall provide that they shall not be amended or canceled on less than thirty (30) days' prior written notice to Lessor and all insureds and beneficiaries of the policies; provided, however, that if thirty (30) days' notice is ever commercially unavailable, then the required number of days' notice shall be reduced to such number as is commercially available. All policies of insurance shall further provide that they shall not be cancelled for non-payment of premium on less than ten (10) days' prior written notice to Lessor and all insureds and beneficiaries of the policies. All such policies shall contain waiver of subrogation rights endorsements as required below. Lessor shall have no obligation to pay premiums or make contributions to the insuring company or any other Person or satisfy any deductible. ii) Delivery. On or before the Execution Date and then not less than twenty (20) days prior to the expiration date of any policy required to be carried pursuant to this Article, Lessee shall deliver to Lessor the applicable respective policies and insurance company certificates evidencing all policies of insurance and renewals required to be furnished hereunder, including those policies that may be provided by a valet company or other independent contractor. Receipt of any documentation of insurance by Lessor or by any of its representatives which indicates less coverage than required does not constitute a waiver of Lessee's obligation to fulfill the insurance requirements herein. E. Lessor's Right to Obtain. If Lessee fails to pay insurance premiums when due or to comply with other insurance requirements set forth in this Lease, Lessor shall have the right, at its option but not an obligation, to order insurance policies and to advance such sums as are required to maintain or procure such insurance, and to the extent of the money so advanced, Lessor shall be entitled to reimbursement by Lessee in which event the amount of the premium paid shall be paid by Lessee to the Lessor 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 City. Lessee's failure to procure insurance shall in no way release Lessee from its obligations and responsibilities as provided hereof. Unless there would ensue a lapse of coverage, Lessor shall, before making any such advance, provide Lessee with thirty (30) days' prior written notice and the opportunity to obtain the required policies. F. Insurer To Be Approved; Premium Receipts. All policies of insurance of the character described herein shall be effected under policies issued by insurers permitted to do business in the State of Florida as an admitted or non - admitted carrier and rated in Best's Insurance Guide, or any successor thereto (or, if there is none, an organization having a national reputation for rating insurance companies) as having a general policyholder rating of "A-" and a fmancial strength rating of at least "V". In the event that a carrier with such rating is not available, the policy must be submitted to Lessor's Director of Risk Management for review and acceptance. On written request by Lessor, Lessee shall provide photocopies of receipts showing the payment of premiums for all insurance policies required to be maintained by this Lease. G. Waiver of Subrogation i) Mutual. Waiver. Each Party waives all rights to recover against the other Party for any damage arising from any cause covered by any insurance required to be carried by the waiving party, or any insurance actually carried by the waiving party; provided, however, that such waiver shall apply only to the extent the applicable insurers issue the appropriate waiver of subrogation rights endorsements described below. ii) Endorsements. Each party shall cause its insurer(s) to issue appropriate waiver of subrogation rights endorsements to all policies of insurance carried in connection with the Property. H. Blanket Policies. Notwithstanding anything to the contrary contained herein, Lessee shall have the right to provide insurance coverage pursuant to blanket policies obtained by Lessee provided such blanket policies expressly afford coverage required by this Section 21. Schedule 2 [Location of New Parking Facility and Access Road from New Parking Facility to Rusty Pelican] Schedule 2 Schedule 3 [Sketch of Location for Additional Parking] Schedule ,mot ,rk f.v t Y r uN9VV03yn :>a:.rcra•.;..�t�,R,:-,:r.,:;...::x�.:v�uato:•°�•.._ rz:rrzc'iiiY=`::'iai DJgraphics/Marine5tadiumParkingSQFT030309.rn d l Schedule 4 [Construction Draw Down Schedule] Virginia Key Parking Draw Down Schedule Project Budget $6,000,000.Q0 Schedule 4 Month Work Phase Costs , Biscayne Bay Restaurant Corp. Marina Tenant January-2010 Design/Pre-development 4.00% $ 240,000.00 $ 160,000.00 $ 80,000.00 February-2010 RFP/Permitting 1.00% $ 60,000.00v $ 40,000.00 $ 20,000.00 March-2010 RFP/Permitting 1.00% 1,00% 5.00% 10.00% 15.00% 20.00% 10.00% 10.00% 8.00% 5.00% $ 60,000.00 $ .40,000.00 $ 20,000.00 April-2010 RFP/Permitting • $ 60,000.00 $ 40,000.00 $ 20,000.00 May-2010 Construction $ 300,000.00 $ 200,000.00 $ 100,000.00 June-2010 Construction $ 600,000.00 $ 400,000.00 $ 200,000.00 July-2010 Construction $ 900,000.00 $ 600,000.00 $ 300,000.00 August-2010 Construction $ 1,200,000.00 $ 800,000.00 $ 400,000.00 September-2010 Construction $ 600,000.00 $ 400,000.00 $ 200,000.00 October-2010 Construction $ 600,000.00 $ 400,000.00 $ 200,000.00 November-2010 Construction $ 480,000.00 $ 320,000.00 $ 160,000.00 December-2010 Construction $ 300,000.00 $ 200,000.00 $ 100,000.00 January-2011 Construction & Retainage 10.00% $ 600,000.00 $ 400,000.00 $ 200,000.00 Total Estimated Expenses 100.00% $ 6,000,000.00 $ 4,000,000.00 $ 2,000,000.0C • 1 Schedule 5 [Form of Notice of Parking Rights] This instrument prepared by or under the supervision of Name: Michael T. Lynott, Esq. Address: Greenberg Traurig, P.A. 1221 Brickell Avenue Miami, Florida 33131-3261 MEMORANDUM OF NOTICE OF PARKING RIGHTS THIS MEMORANDUM OF NOTICE OF. PARKING RIGHTS is made and entered into this /7*day of / /eAtOE/ , 20D9 by and between the CITY OF MIAMI, a municipal corporation of the State of Florida ("Lessor"), and BISCAYNE BAY RESTAURANT CORPORATION, a Florida Corporation, a wholly owned subsidiary of Specialty Restaurants Corporation, a California corporation, d/b/a Rusty Pelican ("Lessee"). WHEREAS: A. Lessor is the owner of that certain real property located in Miami -Dade County, Florida, (the "Property") where the parking garage referenced in the Lease dated February 13, 1970, as amended (the "Lease"), will be constructed, which Property is more particularly described in Exhibit "A" attached hereto and by this reference made a part hereof. B. Lessor and Lessee are the parties to the Lease. C. The Lease provides that in exchange for the Lessee's making certain monetary contributions to the Lessor (or to its municipal parking authority) toward the construction of a parking garage facility on the Property, that Lessee shall be entitled to use a minimum of 220 parking spaces in such parking facility at no charge to Lessee during the term of the Lease (the "Parking Rights"). C. Lessor and Lessee desire to place all persons to whom these presents may come upon notice of the existence of the Lease and the Parking Rights. NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as follows: 1. The foregoing recitals are true and correct and are incorporated herein by reference. 2. All persons are hereby placed on notice of the existence of the Lease and the Parking Rights. 3. The initial term of the Lease expires on October 1, 2012. The Lease provides for an extension until October 1, 2027, and also contains two (2) additional options to extend for five (5) years each, the last of which will expire on October 1, 2037. 4. The rights of Lessee as a tenant under the Lease (including the Parking Rights) and this Memorandum shall expire for all purposes and be of no further force and effect either upon: (i) the expiration of the term of the Lease, together with all applicable extension periods, or (ii) the recording of a written instrument terminating or releasing this Memorandum, executed by both Lessor and Lessee whichever is earlier. Uponsuch termination, no person who comes upon these presents shall be charged with any notice of the provisions hereof. 5. The terms of this Memorandum may only be modified or amended by an instrument in writing, fully executed by Lessor and Lessee. [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, the parties have caused this Memorandum to be executed as of the day and year first above written. Signed, sealed and delivered in the presence of: Wi Print N Witness: Print Name: Witness:(et6(; 9 • Yn- Print Name: 1. ,(i e r /f aar-( Witn Print Name: �Ho�kea�o�c "LESSOR" CITY 0 cor i oratio B Pedro G. Hernandez, ity Manager A , a municipal the State of Florida "LESSEE" BISCAYNE BAY RESTAURANT CORPORATION, a California. corporatio By: Howard Bell, CEO STATE OF 00 (I'd ) SS: COUNTY\OFR 1 t p4 ) " ) Nq) The foregoing instrument was acknowledged before me this I k day of D Ile 1w b P / , 2009, by Pedro G. Hernandez as the City Manager of the City of Miami, a municipal corporation of the State of Florida, on behalf of the City. He is personall known to u&or has produced as identifrc tipn and did take�� Name Notar/Public, State of Fl My Commission Expires: NOTARY PUBLIC -STATE OF FIARIDA No.: °fella E. Perez Commission #DD701412 Expires: AUG. 02, 2011 BONDED TARO ATLANTIC BONDING CO., IN OTARIAL SEAL] STATE OF 0.14(.4' brO i 4- ) ) SS: COUNTY OF ClQnq Q ) The foregoing instrument was acknowledged before me this 5 day of Uemtae r , 2009, by Howard Bell, as the CEO of Biscayne Bay Restaurant Corporation, a California corporation, on behalf of the corporation. He is personally known to me or has produced C l- Di''` r5 (i c'e% A ' as identification and did take an oath. (..fit a)CrTiA--) Name: / 5f e_ ar Notary Public, State of Ck ' '1,Q My Commission Expires: Commission No.: J-P7-2_0I [NOTARIAL SEAL] LESLIE I. MOORE Commission IP 1716222 Notary Public • California i �_lT,�' Los Angeles County - !cam_'esJon7,2 11 _1 AGORD. CERTIFICATE OF LIABILIT Y INSURANCE 1/31/2010 DATE (MM/DD/VYYY) 1/31/2009 PRODUCER Lockton Insurance Brokers, LLC 725 S. Figueroa Street, 35th FI. CA License #0F15767 Los Angeles 90017 (213) 689-0065 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # IN-.--dD Specialty Restaurants Corporation 1040892 8191 E. Kaiser Blvd. Anaheim CA 92808 INSURER A: Lexington Insurance Company 19437 INSURER B American Guarantee and Liability Insurance Company 26247 INSURER C: Zurich American Insurance Company 16535 INSURER D: American Zurich Insurance Company 40142 INSURER E FA THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING , , v vat+tV.I.�_a ma •4• INSURER(SI AUTHORIZED REPRESENTATIVE OR PRODUCER AND THE CERTIFICATE HOLD _. THE POUCIES OF INSURANCE USTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADD-L INSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MMIDD/YY) POLICY EXPIRATION DATE (MM/DDPYY) UMITS GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 X COMMERCIAL GENERAL LIABILITY 6426355 1/31/2008 1/31/2010 AMAA PREEMn SES (Ee oncurence) $ 50,000 CLAIMS MADE X OCCUR MED EXP (Any one person) $ Excluded X Liq. Lab. $1MM PERSONAL $ ADV INJURY $ 1,000,000 X $25,000 SIR GENERAL AGGREGATE $ 2,000,000 GEN'L AGGREGATE LIMITAPPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000 F-1 PRO- -1 POLICY I _) JECT X LOC AUTOMOBILE _— LIABILITY ANY AUTO _.,,, 1 - COMBINED SINGLE LIMIT (Ea accident) $ XXXXXXX ALL OWNED AUTOS SCHEDULED AUTOS tl NOT APPLICABLE! ``1 �nr\�r!IiIt; r;ll��l ,(','I,`�� tl'l i': �"4 t; uu - i'; ,,'J /I D t7jI 2(� 1 / ,!J BODILY INJURY (Per person) $ XXX}iXXX _ HIRED AUTOS NON -OWNED AUTOS // 6 w ( BODILY INJURY (Per accident) $ XXXXrn PROPERTY DAMAGE 1$�rX r�) (Per accident) \.'., GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ XXXXXXX ANY AUTO NOT APPLICABLE OTHER THAN EA ACC $ XXXXXXX AUTO ONLY: AGG $ XXXXXXX EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ 10,000,000 B X OCCUR I J CLAIMS MADE AUC9378705-05 1/31/2009 1/31/2010 AGGREGATE O $ 10,000,000 UMBRELLA e`' -O :'- �$ X + DEDUCTIBLE XIFORM - 1C .-. 1$ XXXXXXX X RETENTION $ 0 I-1-,-. 1,$ XXXXXXX D WORKERS COMPENSATION AND WC9378698-05 (DED) 1/31/2009 1/31/2010 X TORY LIMITS'' . -' OER r C EMPLOYERS' LIABILITY ANY PROPRIETORMARTNER/EXECUTIVE WC9378699-05 (RETRO) 1/31/2009 1/31/2010 ._L E.L. EACH AGDIDEN,I-. 1 $ ,000,000 OFFICER/MEMBER EXCLUDED? "- E.L. DISEASE-EA'EMPLOYEE $ 1,000,000 Iryes,desedheunder SPECIAL PROVISIONS below No E.L. DISEASE -POL'IEY LIMIT $ 1,000,000 OTHER - e/I^ •• : r rj ......... V) DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLESIEXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS Re: Rusty Pelican located at 3201 Rickenbacker Causeway, Key Biscayne, FL 33149. Certificate holder is named as an additional insured as their interest may appear with respect to the referenced location. CERTIFICATE HOLDER CANCELLATION 1230205 City of Miami Office of Assel Management 444 S.W. 2 Avenue, 3rd Floor Miami FL33130: ACORD 25 (2001/08) SHOULD ANY OF THE ABOVE DESCRIBED POLICES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPREShN I A 1 For qunatione regarding this certificate, contact the number listed In th,'Producer section above and s city the ell cod SPEREOV. ACORD CORPORATION 1988 ACORD„d ' EVIDENCE OF COMMERCIAL PROPERTY INSURANCE DATE (M MfDDfYYYY) 1/31/2009 THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND CONVEYS ALL THE RIGHTS AND PRIVILEGES' AFFORDED UNDER THE POLICY. NAME, CONTACT PERSON AND ADDRESS jy L, ,n Insurance Brokers; LLC- 725S. Figueroa Street, 35th FL CA, License #OF1576/ .Los Afgetes..90017... -_ PHONE 213 6 INC. No. EMI: () 89-0065PRODUCER COMPANY NAME AND ADDRESS ***See Attached*** ... .. - . - .IF MULTIPLE COMPANIES COMPLETE SEPARATE NAIL NO: Ate. No. Esti: (213) 689-0550 . . .. ... FORM FOR EACH E-MAIL ADDRESS: CODE: •• • • ......... .. .. SUB CODE:. .. .. GUST& ER ID drr SPEREO1 . . . .-- - - .- NAMED INSURED AND ADDRESS Specialty Restaurants Corporation 1100624 8191 E. Kaiser Blvd. Anaheim CA 92808 LOAN NUMBER POLICY NUMBER Various* EFFECTIVE DATE 1/31/2009 EXPIRATION DATE 1/31/2010 CONTINUED UNTIL n 1 1 TERMINATED IF CHECKED AOOITTONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION (Use additional sheets•if more space is required) LOCATIONFD ESCRIPTI ON COVERAGE INFORMATION CAUSE OF LOSS FOR I BASIC BROAD FA r. nr, rii(i dint A X I SPECIAL I I OTHER COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ 40,000,000* DEO: I0,000* YES NO BUSINESS INCOME / RENTAL VALUE X If YES, LIMIT: Included _I X_ Actual Loss Sustained $ of months: 18 BLANKET COVERAGE X If YES, indicate amount of insurance on properties identified above: $ 93,365,600 TERRORISM COVERAGE X Attached signed Disclosure Notice / DEC IS COVERAGE PROVIDED FOR "CERTIFIED ACTS' ONLY? X tf YES, sus LIMIT' DED: ":IS COVERAGE A STAND ALONE POLICY? . .. . X If YES, LIMIT: DED'. DOES•COVERAGE INCLUDE DOMESTIC.TERRORISM? . .. X If YES, SUS LIMIT: DED: CO"RRAGE FOR MOLD X If YES, LIMIT: Included DE Ii EXCLUSION (If "YES". specify organization's form used) X ti REPLACEMENT COST X cru _1 AGREED AMOUNT X COINSURANCE X If YES, % �` l EQUIPMENT BREAKDOWN(I(Applirable) X I(YES, LIMIT: DED:IL .. .... LAWAND ORDINANCE -Coverage for loss to undamaged portion ofbuilding X If YES, LIMIT: Included DlDl-ef-, - Demolition Costs X Ir YES, LIMIT: 2,500,000 DEG; C-. t - Incr. Cost of Construction X /YES, LIMIT: Included DED: r* EARTHQUAKE (If Applicable) X II YES, LIMIT: 3 0,000,000 DED r1j FL00D Or Applicable) X If YES. LIMIT: 10,0b0,Q00 DED: Eir`f WIND/HAIL (If Seporele Policy) X If YES, LIMIT: Included DED: * PERMISSION TO WAIVE SUBROGATION PRIOR TO LOSS - X REMARKS - Including Special Conditions (Use additional sheets if more space is required) *See attached Addendum. Re: Rusty Pelican 426. CANCELLATION THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW 30 DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW. ADDITIONAL INTEREST [M4524643 NAME AND ADDRESS 303898 City of Miami Office of Asset Management 444 SW 2nd Avenue, 3rd Floor Merit FL33130 LENDER SERVICING AGENT NAME AND ADDRESS MORTGAGEE LOSS PAYEE ACORD 28 (2003/10) AUTHORIZED REPRES TAT e I code 'Producer' section alto end spec ha Fat questions moon:lino this codlacato, tooted ma number eared in the'P sPEREgt'. B ACORD CORPORATION 201 AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF M AMI AND BISCAYNE BAY RESTAURANT CORP. This amendment to the Lease Agreement is entered into this I (' day of 2001, by and between the City of Miami, a municipal corporation of the State of Florida (the "City"), and Biscayne Bay Restaurant Corp. ("Lessee") for the purpose of amending that certain Lease Agreement between the City and Lessee dated February 13, 1970, as amended, (the "Agreement"). WHEREAS, South Florida business that depend significantly on the tourism industry have been greatly impacted by the fallout of the September 11, 2001 terrorist strikes; and WHEREAS, the City rents certain space to businesses impacted by the loss of tourism; and WHEREAS, on September 25, 2001, the City Commission adopted Resolution 01-996 to provide for a temporary deferral of rent for those businesses affected by loss of tourism and who rent space from the City; NOW, TEIEREFORE, in consideration of mutual covenants hereinafter set forth and in consideration of other valuable consideration the parties covenant and agree as follows: 1. Incorporation of Recitals: The recitals and findings set forth above are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Agreement. 2. Amendment Effective Date: This effective date of this Amendment shall be the date upon which it is executed by the City Manager (the "Amendment Effective Date"). 3. Temporary Rent Abatement: Notwithstanding anything in the Agreement to the contrary, Lessee is hereby granted a deferment of Rent due and payable on the months of October, November and December, 2001 (the "Deferred Period"). The amount of deferred Rent Shal<1 he paid i_n_ equal monthly install Ants on the4irst-clay of each-monthrcommencing-January Biscayne Bay Restaurant Corp. By: Print Name and Title City of Miami, a municipal corporation of the State of Florida s R. lime City Manager 1, 2002 and ending September 1, 2002. Failure to complete payment of deferred Rent by September 1, 2002 shall constitute a default under the Agreement. Nothing contained herein shall affect the payment of percentage rent, if any, due and payable during the Deferred Period but accruing prior to the Deferred Period, nor the payment of impositions, or any other amounts due under the Agreement during the Deferred Period." Except as specifically provided herein, all of the terms and provisions of the Agreement shall remain in effect: Attest: gnature �ILI�i . z %%% ,0,44dY2 Print Name and Tide "el ts1, Attest Walter J. City Cle Approved As Correctne ell Attorney �V/1 UttU) :.• :? 1J:::1,rv. y3011ULC74 r L RESOLUTION OF BOARD OF DIRECTORS BISCAYNE BAY RESTAURANT CORPORATION I, Judith D. McMahon, hereby certify to the following: 1. Thal I atn the duly elected and qualified Assistant Secretary of Biscayne Bay Restaurant Corporation, a Florida corporation, and the keeper of the rwords and Corporate Seal of said corporation 2. I hereby further certify that the following is a true and correct copy of a Resolution duly adopted at a Special Meeting of the Board of Directors thereof held in accordance with the corporation's By -Laws, at its offices located at 8191 E. Kaiser Blvd, Anaheim, California 92808, en the 6th day of November, 2001, and the same is now in full force. COPY OF RESOLUTION WHEREAS, Biscayne Bay Restaurant Corporation is desirous of amending the Lease Agreement it entered into on February 13, 1970 with Lessor City of Miami The premises is known as the Rusty Pelican Restaurant, 3201 Rickenbacker Causeway, Key Biscayne, Florida WHEREAS, Lessor City of Miami has proposed an Amendment to the Lease Agreement permitting Biscayne Bay Restaurant Corporation to defer rents for the months of October, November and December, 2001. WHEREAS. this corporation deems it to be in its best interest to amend the lease entered into on on .February 14, 1970 with Lessor City of Miami ,o defer rents for the months of October, November and December, 2001. NOW, THEREFORE, BE IT RESOLVED, that John Kenny, Chief Financial Officer, is hereby authorized, for, on behalf of, and in the name this corporation to execute the lease amendment and any and aU . other documents necessary to obtain the amendment of the lease. IN WITNESS WHEREOF, I have hereto affixed my name as Assistant Secretary and have caused the Corporate Seal of said Corporation to also be affixed this 6th day of Nov . r, 2001. L:WARIAILLS LI rIi.LSI: udith D. McMahon Assistant Secretary fl AMENDMENT NO. 3 TO LEASE AGREEMENT BETWEEN CITY OF MIAMI AND BISCAYNE BAY RESTAURANT CORPORATION, A Florida Corporation, a wholly owned subsidiary of Specialty Restaurants Corporation, a California Corporation, d/b/a Rusty Pelican TABLE OF CONTENTS 1. Incorporation of Recitals 2 2. Definitions 2 3. Term 3 4. Use 4 5. Ownership of Improvements 5 6. Pledge of Leasehold Interest 6 7. Rent 7 8. Gross Receipts 10 9. Records, Accounts and Statements 11 • 10. Manner of Operation 13 11. Maintenance and Repair 14 12. Destruction 19 13. Insurance 19 14. Notices. 18 15. Capital Improvements 19 16. State Approval 19 I 7. Safety 19 18. Americans With Disabilites Act 19 19. Force Majeure 19 20. No Defaults 19 21. Counterparts 19 22. Amendment 19 23. Additional Parking 19 Exhibit "A" Legal Description Exhibit "B" Required Capital Improvements Exhibit "B-I" ..Phase I Required Capital hnprovements Exhibit "B-II" . Phase II Required Capital Improvements Exhibit "B-III" Phase III Required Capital Improvements Exhibit "B-1V" Optional Capital Improvements Schedule 1 .Insurance Requirements Schedule 2 Location of New Parking Facility and Access Road from New Parking Facility Schedule 3 Sketch of Location for Additional Parking Schedule 4 Construction Draw Down Schedule Schedule 5 Form of Notice of Parking Rights `7u JUL '0 %1 B : 56 flip; Vit,141 '70 JUL 1 All 10:3.9 SUPPLEMENTAL LEASE AGREEMENT BETWEEN THE CITY OF MIAMI AND BISCAYNE BAY RESTAURANT COR- PORATION, A WHOLLY OWNED SUB- SIDIARY OF SPECIALTY RESTAURANTS CORPORATION This Supplemental Lease Agreement made this 23rd day of July 1970-, between THE CITY OF MIAMI, a municipal corporation -of the State of Florida, as Lessor, and BISCAYNE BAY RESTAURANT CORPORATION, a Florida corporation, a wholly owned subsidiary of SPECIALTY RESTAURANTS CORPORATION, a California corporation, as Lessee. W ITNESSET H: WHEREAS, the parties hereto entered into a Lease Agreement dated February 13, 1970, in which it provided on page 22 thereof the legal description of the land and which was designated as Exhibit "A"; and WHEREAS, said Lease Agreement further provided as Exhibit "B" a sketch of the leased area which is also attached to the Lease Agreement, NOW, THEREFORE, THE PARTIES HERETO COVENANT AND AGREE: 1. The Lessor and Lessee hereby mutually agree that the Lease Agreement entered into on the 13th day of February, 1970, be amended to substitute the attached re- vised legal description as Exhibit "A" in lieu of Exhibit "A" presently in said Lease Agreement for the purpose of eliminating the existing radius curve at the northerly corner of the leased area. 2. The Lessor and Lessee further mutually agree that the Lease Agreement entered into on the 13th day of February, 1970 be amended to substitute the attached sketch as Exhibit "B" in lieu of Exhibit "8" presently in said Lease Agreement for the purpose of showing the leased area. That the Lease Agreement entered into on the 13th day of February, 1970, between the parties hereto shall remain in full force and effect and shall not be deemed to be repealed, amended or modified in any way except as herein - above specifically provided. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed in their names, and their seals impressed hereon, by their proper officials at Miami. Florida, all as of the day and year first above written. Attest: City Clerk Sec Attest: etary Secretary APPRO D: Direc Works REVIEWED BY: c City Manager BISCAYNE BAY RESTAURANT CORPORATI ON, Lessee By Clteia-1-5"71 SPECIALTY RESTAURANTS CORPORATION By C: ,,f.. President PREPARED BY: JACK R. RICE, JR:, Asst. Dir. A an H. Rothstein, City At BNG/jmc 02/25/82 5681A/41 AMENDMENT NO. 1 TO LEASE AGREEMENT DATED 13 FEBRUARY, 1970 THIS AGREEMENT made and entered into this 28 day of May , 1982, by and between the CITY OF MIAMI, a Municipal Corporation of the State of Florida, hereinafter referred to as the "LESSOR", and BISCAYNE BAY RESTAURANT CORPORATION, a Florida Corporation, a wholly owned subsidiary of Specialty Restaurants Corporation, a California Corporation, hereinafter referred to as "LESSEE", amending a Lease Agreement which was entered into on February 13, 1970, for the lease of CITY. property for the development and operation of a high class restaurant at the City of Miami Marine Stadium, by and between the same parties. W ITNESSET H: WHEREAS, the LESSEE of the city -owned Rusty Pelican Restaurant waterfront property on Rickenbacker Causeway re- quested an Amendment to the existing Lease Agreement to pro- vide for an additional ten (10) year extension of its Lease based upon the need to amortize an expansion and improvement program to the facility at a proposed cost of $750,000.00; and, WHEREAS, under the proposed Amendment, after comple- tion of the expansion, which includes the addition of a second story restaurant, the minimum monthly guaranteed rent paid to theCITY shall be increased from $1,500.00 to $4,000.00; and, WHEREAS, under the proposed Amendment, the calcula- tions of monthly business percentages rent formula shall be made separately for the existing restaurant and the proposed new dining facility; and, WHEREAS, before the CITY agreed to the Amendment sought by the LESSEE of said property, it was necessary that the Lease Agreement be approved by a majority of the qualified electors of the City of Miami voting at a special municipal election held for the purpose of enabling said electors to register their approval or disapproval of said Amendment; and, WHEREAS, the City Commission on September 10, 1981, passed Resolution No. 81-761 and Resolution No. 81-762 provid- ing for the submission to the qualified electors of the City of Miami and the calling and providing of a special municipal election on the 3rd day of November, 1981, for the purpose of submitting for their approval or disapproval the proposed ex- tension and modification of the existing Lease Agreement re- lated to the operation of the Rusty Pelican Restaurant located on City owned waterfront property on Rickenbacker Causeway; and, WHEREAS, the qualified electors of the City of Miami approved the proposed extension and modification of the Lease during the special municipal election held on November 3, 1981; NOW THEREFORE, in consideration of the premises and mutual covenants hereinafter contained to be observed and per- formed, and for other valuable consideration, Paragraphs 2. TERM and 10. RENT of the Lease Agreement dated 13 February, 1970, shall be amended for extension and modification as fol- lows: I. As to Paragraph 2, TERM, the original base term there- in shall be extended from twenty (20) years to thirty (30) years. Such extension of the term shall be conditioned upon and in consideration of LESSEE undertaking and agreeing to con- struct adjacent to and above the existing restaurant building an addition consisting of approximately 5,500 square feet in accordance with floor plans and drawings to be approved by the City Manager prior to the commencement of construction, which approval shall not be unreasonably withheld. LESSEE agrees to spend not less than $750,000.00 on construction improvements to said property and all those provisions of the original Agree- ment pertaining to construction, for example, construction bond, ownership of improvements, and pledge of lease -hold interest, shall be applicable to such construction. II. As to Paragraph 10, RENT, the amount of the rent shall be modified by increasing the minimum monthly guaranteed rent by an additional amount of $2,500.00 per month, after the com- pletion of the expansion project and the opening for business of the addition. Further, from and after the completion and opening for business of the addition, the calculations of monthly percentage of gross receipts shall be applied separately to the existing restaurant area's operations gross receipts and to the new additional area's operations gross receipts. The minimum monthly rent, as modified above, shall thereafter be deducted from the total of the two areas' gross receipts in determining the percentage rent payable for a given month. THE LEASE AGREEMENT entered into on the 13th day of February, 1970, remains in full force and effect and shall not be deemed to be repealed, amended, or modified in any manner whatsoever except as hereinabove specifically provided. IN WITNESS WHEREOF, the parties hereto have individually and through their proper corporate officials executed this Lease Amendment the day and year first above written. WITNESSES: WITNESSES: // ATTE Clerk BISCAYNE BAY RESTAURANT CORPORATION, INC., a Florida Corporation, LESSEE, 70 � By: t1a1{bL L-- I el/VI, `�_r \ 4 (SEAL) SPECIALTY RESTAURANTS CORPORATION, INC., a California Corporation,/ By: it/I t tit, fl�.l fyu.- (SEAL) CITY OF MIAMI, a Municipal Corporation of the State of Florida By: City Manager APPROVED AS TO FORM AND CORRECTNESS: �`_� _tea_ 0RGE F. KNOX. JR., City Attornpv'`:/ EXHIBIT "A" Commence at the southeast corner of Section 17, Township 54 South, Range 42 East; thence•run north 89° S6' 49.5" west for a distance of 2,649.84 feet, more or less, to a point of intersection with the center line of Rickenbacker Causeway as shown in Plat Book 74, at Page 9, Sheet 2, of the Metropolitan Dade County Bulkhead Line; thence run north 45° 22' 07" west along said center line of Ricken- backer Causeway and its northwesterly prolongation thereof for a distance of 4,700.21 feet to a point; thence run north 44° 37' 53" east for a distance of 520.00 feet to the Point of Beginning of the hereinafter described tract; thence run north 45° 22', 07" west a distance of 602.87 feet to a point; thence run south 60° 16' west for a distance of 180.00 feet; thence run north 29° 43' 07 west for a distance of 100.00 feet; thence run north 60° 16' 53 east for a distance of 359.69 feet to a point; thence run south 45° 22' 07" east for a distance of 650.70 feet to a point; thence for t 53"X I " L. run south 44° 37' 53" west for a distanc2 of 200.00 feet to the Point of Beginning. For information and further identification see attached m._e. Signature for BISCAYNE BAY RESTAURANT CORPORATION, a wholly -owned subsidiary of SPECIALTY RESTAURANTS CORPORATION for THE CITY OF MIAMI ADDENDUM TO LEASE AGREEMENT This is an addendum ("Addendum") to that certain lease agreement dated February 13, 1970 between the City of Miami, a municipal corporation of the State of Florida ("Lessor") and Biscayne Bay Restaurant Corporation, a Florida corporation, a wholly -owned subsidiary of Specialty Restaurants Corporation, a California corporation ("Lessee"). WITNE$SETH: WHEREAS, Lessor and Lessee entered into the Lease for an initial twenty-year period; and WHEREAS, by special election held on November 3, 1981, the citizens of the City of Miami approved a modification to the Lease, extending the original term to a total initial thirty-year period; and WHEREAS, the restaurant on the premises was consumed by fire on November 14, 1985; and WHEREAS, the restaurant opened for business twenty months after the fire; and WHEREAS, Lessee has requested an extension of the original lease term for the time lost in rebuilding the restaurant; and WHEREAS, by Resolution No. 89-508, passed and adopted on June 7, 1989, the City Commission authorized the City Manager to extend by twenty months the termination date of the initial thirty-year period, from February 1, 2001 to October 1, 2002. NOW, THEREFORE, in consideration of the premises and for other valuable consideration, the Lease is amended as follows: 1. The above recitals are true and correct and are incorporated into Addendum as though fully set forth herein. 2. The termination date of the Lease is extended for twenty months, from February 1, 2001 to October 1, 2002. 3. It is the intention of Lessor and Lessee that in case of a conflict between this Addendum and the Lease or any exhibits thereto, the terms of this Addendum shall govern and any 4 conflicting language, terms or provisions in the Lease shall be inoperative. All defined terms used in this Addendum shall have the same meanings and usages as set forth in the Lease. IN WITNESS WHEREOF, Lessor and Lessee have individually and through their proper corporate officials executed this Addendum as of the day and year first above written. Witn s-s: LESSEE: BISCAYNE BAY RESTAURANT CORPORATION, INC., a Florida corporation (SEAL) SPECIALTY RESTAURANTS, INC., a Florida corporation (SEAL) LESSOR: CITY OF MIAMI, a municipal corporation of the State of. Florida By: APPROVED AS TO FORM AND CORRECTNESS: 135RLO4 G 041792/aw Attorney City Mar:agar LEASE AGREEMENT' This lease is executed on.d/" / 3 urf 19-4a0-,, between THE CITY OF MIAMI, a Municipal Corporation of the State of Florida, as LESSOR, and BISCAYNE BAY RESTAURANT CORPORATION, a Florida corporation, a wholly owned subsidiary of SPECIALTY RESTAURANTS CORPORATION, a California corpor- ation, as LESSEE. WITNESSED WHEREAS, prior to 1961 the City of Miami received several requests from private entrepeneurs for the develop- ment of a Marine Stadium on public property on Virginia Key. The development of such a facility had several functions in that it was to serve as a facility for boat races, boat- ing and water attractions, including a variety of shows, and was to be a significant tourist attraction; and c WHEREAS, in 1961, the City Commission took under advisement these various plans and concluded that it would be to .the community's 'advantage to have a marine stadium developed through the City government; and WHEREAS, in 1961 and 62 the City Commission authorized the commissioning of Ralph H. Burke, Inc., Engineers -Architects Of Chicago -Park Ridge, Illinois, to develop a master plan feasibility study for a marine stadium to be located on Virginia Key. The master plan, which is on file, recommended the construction of a mar- ine stadium to cover a variety of uses and needs and emphasized that such a marine stadium would be a major tourist attraction; and WHEREAS, the City financed and constructed the marine stadium facility which became available to the public through dedication ceremonies held on December 27, 1963; and WHEREAS, the City of Miami has continuously upgraded the Marine Stadium facility with the objective that it would become a major tourist attraction, whereby improvement items such as a barge, temporary barge cover to hold outdoor shows, design and proposed construction of a permanent barge cover, additional landscaping, a fountain. marquee sign. parking lot lighting, bulkheaded pit area, overhead crane boat hoist, boating ramp launch- ing areas, construction of a special bulkheaded slip area to berth the floating stage and other items have been added to improve the facility; and WHEREAS, from time to time various interested organizations of the community, such as the Chamber of Commerce, the Marine Council and the Jay Cee's, have recommended programs whereby greater utilization might be made of the Marine Stadium to improve its tourist oriented activities; and WHEREAS, the preceding community organizations, in addition to the City of Miami, recognized a public pur- pose need to provide high class restaurant facilities, a marine museum and a small marina at the Marine Stadium. The City Commission after a number of public hearings, concluded that a high class restaurant facility was a n - 2 - necessary element if the Marine Stadium is to be classi- fied as a major tourist attraction; and WHEREAS, it has been deemed by the City Commission of the City of Miami through public meetings, that a high ( class restaurant facility is an allied purpose to the Marine Stadium complex and is required to fulfill the request that the Marine Stadium be classified as a major touristattraction, and WHEREAS, the City Commission after several public calls for restaurant development proposals at the Marine Stadium adopted Resolution 41424 on September 30, 1969 accepting the proposal by Specialty Restaurants Corporation. of Long Beach,'California, for the development and operation of a high class restaurant at the City of Miami Marine Stadium; further authorizing the City Manager to enter into agreement for development and operation of the restaurant at the Marine Stadium. NOW, THEREFORE, in consideration of the premises the parties hereto have entered into the following •Lease Agreement. 1: DESCRIPTION OP THZ PREMISES: For and in consideration of the mutual premises herein contained, Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor certain real property (hereinafter referred to as the Premises) described in "Exhibit A" and Exhibit "B" signed by the parties hereto and incorporated by reference. - 3 - 2. TERM: The term shall be twenty (20) years commencing on February 1, 1971, or date Lessee commences business, whichever occurs first. Lessee is herewith given the option to renew the term of this lease, under the same terms and conditions as are set forth herein for the original term hereof, for two additional periods of five (5).years.each, the first five-year period commencing upon the expiration of the original term and the second five-year period commencing at the expiration of the first five-year renewal period; if Lessee desires to exercise these options, Lessee shall give Lessor written notification not later than six (6) months preceding the termination of the original term of this lease as to the first five-year renewal period and not later than six (6) months preceding the termina• - tion of the first five-year renewal period as to the re- newal of the second five-year. period. 3. CONDITIONS SUBSEQUENT: Liquor License: Lessee shall promptly apply for a liquor license from the appropriate governmental authorities. This lease shall be specifically conditioned upon the issuance of a liquor license to the Lessee per- mitting only the dispensing and sale of alcoholic bever- ages on the premises for consumption on the premises. Lessee shall use every reasonable effort and due diligence to fulfill this condition. The lessee shall have obtained the required liquor license prior to opening the restaurant to the public. - 4 - Upon termination of this lease for any cause whatsoever, all licenses, including liquor license, shall become the property of the City of Miami, its successors or assigns. 4. USE: . Lessee shall use the Premises for the sole pur- pose of constructing, equipping, furnishing, and operating a dining facility, cocktail lounge. banquet facility, as herein defined, and for purposes incidental thereto, and for no other purpose whatsoever, the latter subject to the written approval of the City Manager. 5. IMPROVEMENTS OF LESSOR: Within thirty (30) days after the condition described in Paragraph 3 is met, Lessor agrees to com- mence construction and installation on the Premises of the following improvements and pursue said work with due diligence: To the Site City to provide the following installations to the site: 1. Road and landscaping, street lighting with underground cable with an electri- cal stub -out for future ornamental lighting, such ornamental lighting to be installed by the Lessee. 2.' Electricity (not transformer). Gas excluded. 3. Water supply, Pump Station. 4. Sanitary Sewer. 6. IMPROVEMENTS OF LESSEE: Within forty-five (45) days after Lessor notifies includes Meter and Booster - 5 - Lessee in writing of Lessor's approval of final working drawings and specifications, Lessee shall commence con- struction and installation on the Premises of the fol- lowing improvements and purs7ie said work with due dili- gence: 1. A restaurant complex containing a series of cocktail and dining areas, aesthetically and tastefully designed, decorated and furnished to consist of a low profile series of connecting or adjacent structures featuring broad use of native stone, Bermuda roofs, and effec- tive use of concrete materials assuring maximum struc- tural safety from the elements and at,the same time providing top quality design and eye appeal. 2. The Restaurant facility shall consist of approximately 12,000 square feet with not less than 350 person din- ing capacity and cocktail bunges serving not less than 150 guests. 3. There shall be provided a paved parking area with parking spaces in conformity with the Planning and Zoning Ordinance of the City of Miami as it pres- ently exists or may be amended, and said restaurant shall have no less parking spaces than required under said Ordinance. 4. Development of the site by the Lessee shall consist of a luxurious park -like setting featuring floral gardens, and native greenery, with interesting lakes, ponds, or streams that would feature tropical fish - 6 - and fowl native to the Florida area with spacious patio areas for outdoor dining, and drinking dur- ing favorable climatic conditions. 5. Within thirty (30) days after the lease agreement ' is signed, the Lessee shall submit to the Lessor schematic plans. Thirty (30) days after approval by the City of the schematic plans,preliminary plans shall be submitted. Final working drawings and specifications shall be submitted ninety (90) days • after the City's approval of the'preliininary plans. Thirty (30) days will be allowed for the receiving of bids and fifteen (15) days to award same and commence construction. Upon award of bid, the Lessee shall be permitted six (6)'months for the construction of the above -mentioned £acilities. 6. The Lessee shall be solely responsible for complete telephone service of the facility. All improvements of Lessee shall be solely at Lessee's cost and ex- pense and shall be performed in a good workmanlike manner in accordance with sound construction prac- tices. Lessee shall keep the Premises and said improvements free and clear of liens for labor and material and shall hold Lessor harmless from any responsibility in respect thereto. The total cost of Lessee's Improvements on the Premises shall not be less than Six Hundred Thousand .Dollars ($600,000). CONSTRUCTION BOND: Lessee shall, prior to commencement of construe- tion on the Premises by Lessee, furnish Lessor a surety bond naming Lessor and Lessee as the Principals and Owners, covering 100% of the cost of constructing the improvements, including labor and material. The form of the bond shall be as attached hereto and made a part hereof, and the City Manager of the City of Miami shall approve the surety on said bond. 8. OWNERSHIP OF IMPROVEMENTS: All improvements, Furnishings, and equipment constructed or installed on the Premises by the Lessee, shall be personal property and Lessee shall have legal title thereto during the term of this lease. Upon the expiration or termination of this lease, title to all permanent improvements constructed on the Premises shall vest in Lessor. Title to all supplies, furnishings, in- ventories, removable fixtures and removal equipment and other personal property shall remain vested with the Les- see, and the Lessee shall have the right to remove such items, excepting Licenses, from the Premises unless Les- see is in default hereunder. 9. PLEDGE OF LEASEHOLD INTEREST: Lessee may pledge this leasehold interest as. - 8 - security for a bona fide loan, subject to the approval of the City Manager of the City,ifrom reputable lenders or lending institutions, but not beyond the lease term and in an amount not to exceed $500,000. The leasehold interest shall not include public land. There shall be no pledge of leasehold interest as provided herein un- less approved in writing by the City Manager. Prior to obtaining written approval, the Lessee shall furnish to the City Manager all agreements and legal instruments pertaining thereto involving the pledge of leasehold interest as security. 10. RENT: (a) Minimum Monthly Rent: During the term of this lease Lessee shall pay Lessor as minimum month- ly rent, One Thousand Five Hundred Dollars ($1,500) per month payable in advance at the address of the Lessor on the first day of , each month beginning on the day Lessee com- mences business or February 1, 1971, which- ever date occurs first. If rent begins in the middle of the month, rent for such month shall be prorated and paid in advance. If the restaurant facility in the future becomes subject to real property or possesory interest taxes the minimum monthly rental may be re- duced subject to negotiations between the Lessor and Lessee. (b) Percentage Rent: In addition to the minimum monthly rent Lessee shall pay Lessor as per- - 9 - tentage rent, in accordance with the following: An amount equal to the indicated percentages of all gross receipts (as hereinafter defined) derived from the operation of said demised Premises to the extent that such amount exceeds the minimum monthly rental. 2-1/2% $0 to $100.000 per month 3% over $100,000 to $150,000 per month 5% over $150,000 per month 11. RENT DEPOSIT: On the date this lease is executed, Lessee shall pay to Lessor the sum of Nine Thousand dollars ($9,000) as advance payment of the first six (6) months minimum monthly rent due hereunder. 12. GROSS RECEIPTS: The term "gross receipts" as used herein shall include all receipts, whether collected or accrued, de- rived by Lessee or any licensee, concessionaire, or ten- ant of Lessee, from all business conducted upon or from the Premises,including but not limited to receipts from sale of food, beverages, alcoholic beverages. merchan- dise, and rental of space, or from any source whatso- ever; excluding the following items: (a) Retail sales taxes, excise taxes, or related direct taxes on the consumer and collected by Lessee. (b) Receipts from the sale of waste or scrap mater- ials resulting from Lessor's -operations on the I Premises. - 10 - (c) Receipts from the sale or trade-in value of any furniture, fixtures, or equipment used on the Premises. (d) The cost or value of meals or discounts given to employees of Lessee. (e) The cost or value of food and beverage used for entertainment and business promotion purposes by officers and employees of Lessee. (f) The amount of any gratuities given by patrons to employees of Lessee. (g) Receipts from sale of tobacco, cigarettes and cigars. 13. RECORDS. ACCOUNTS.. AND STATEMENTS: Lessee shall keep on the Premises, or such other place approved by Lessor, true, accurate, and complete rec- ords and accounts of all sales, rentals, and business being transacted upon or from the Premises and shall give Lessor or Lessor's' representative access during reasonable�busi- ness hours to examine and audit such records and accounts. Within thirty (30) days after each month of the term hereof, Lessee shall deliver to Lessor a written monthly statement of the gross receipts for such month certified by Lessee to be true, accurate, and complete. Within thirty (30) days after each fiscal year, Lessee shall deliver to Lessor a written annual statement of the gross receipts for such fiscal year. Said state- ment shall be certified as true, accurate, and complete by Lessee. 14. PROPERTY TAXES: During the term hereof Lessee shall pay all taxes of whatever nature lawfully levied upon or assessed against the premises and improvements, property, sales, rentals or operations thereon, including but not limited to ad valorem taxes. 15. LICENSES AND PERMITS: Lessee shall pay for all licenses, permits and fees necessary for Lessee to conduct Lessee's business on the premises. 16. MANNER OF OPERATION: 1. Lessee shall keep the restaurant and cocktail lounge reasonably stocked with food and beverage and reason- ably Staffed to serve the patrons thereof, and Lessee shall maintain a standard of quality.of food and beverage at least equal to similar operations in the area at reasonably com- parable prices. 2. The facilities to be constructed by the Lessee shall be open seven (7) days a week, with the exception of Christmas Eve, or such other days that are approved in writing by the City Manager. 3. Hours of operation shall be as follows: "Lunch • Monday through Friday Saturday and Sunday 11:00 A.M. to 3:00 P.M. 11:00 A.M. to 4:00 P.M. Dinner Monday through Sunday 5:00 P.M. to 12:00 P.M. Cocktails Hours to comply with City of Miami Code and Ordinances. - 12 - approval of the City Manager. Any changes in hours of operation are subject to } Nothing herein contained shall be construed to authorize hours contrary to the laws governing such opera- tions. 17. CONFORMITY TO LAW: -Lessee shall comply with all laws, ordinances, regulations and orders of federal, state, county and munici- pal authorities pertaining to the Premises and Lessee's improvements and operations thereon. That the Lessee covenants and agrees that there will be no discrimination as to race, color, creed or national origin in the use of the demised Premises. i$. MAINTENANCE AND REPAIRS: During the term hereof, Lessee, at Lessee's expense, shall, to the satisfaction of the Lessor, keep and maintain the Premises and all improvements thereon in good and sani- tary order, condition, and repair, consistent with the opera- tion of a first-class quality restaurant in the Miami area. The Lessee shall submit periodically to the Lessor a program of promotion subject to the approval of the Lessor. Upon expiration or termination hereof,'Lessee shall surrender and deliver up to Lessor the Premises and all permanent improve- ments thereon in good and usuable condition, ordinary wear and tear excepted. 19. pESTRUCTION: In the event the Premises shall be destroyed or so damaged or injured.by fire or other casualty during the life - 13 - of this agreement whereby the same shall be Tendered un- tenantable, then the Lessee shall render said Premises tenant- able by repairs within ninety days therefrom, or such addi- tional period of time as agreed to by Lessor's City Manager in writing. In the event the. Premises are substantially destroyed or so damaged or injured by fire or other casualty that the Premises cannot be rendered tenantable or that Lessee elects not to replace within the ninety day period as set forth above, or such additional period of time as agreed to by the Lessor's City Manager, then the proceeds of the insurance policy or policies covering such loss or damage shall be paid to the City of Miami and the Lessee as its interests appear, and this agreement shall be deemed terminated and' the rent shall be payable only to the date that said Premises are rendered untenantable. 20. INDEMNIFICATION: Lessee shall indemnify and hold harmless Lessor from damage and liability arising from liens or claims of any kind or nature whatsoever resulting from the use, acti- vities, and operations of Lessee on or about the Premises. 21. INSURANCE: At all times during the term hereof, Lessee shall maintain in full force and effect the following described insurance covering the Premises and Lessee's improvements and operations thereon: • - 14 - (a) Public Liability Including Products Liability Insurance: Not less than $500,000 for death of or injury to any one person in any one occurrence. Not less than $750,000 for death of or injury to two or more persons in any one occurrence. Not less than $25,000 property damage. (b) Fire and Extended Coverage: 90% of replacement value of all improvements. Certificates of such insurance shall be delivered to .Lessor prior to the beginning of any construction by Lessee; such policies shall name Lessor as additional insured and shall provide that Lessor be given at least thirty (30) days advance written notice of cancellation or material modifica- tion. All Certificates of Insurance shall be filed with the City Clerk of the City of Miami, Florida. The insurance provided for herein shall be written by a company authorized to do business in the State of Florida through an agent authorized to do business in the State of Florida. The insurance company and the amount of coverage shall be subject to the approval of the Lessor's City Manager, and the proceeds payable under Section (b) hereof shall be assignable to the City of Miami pursuant to Paragraph19 of this lease. 22. UTILITIES: Lessee shall promptly pay for charges for water, gas, electricity, telephone, and all other charges for utilities which may be furnished to the Premises during the term hereof. - 15 - 23. DEFAULT: (a) If Lessee abandons.or*.cates-the Premises prior to the expiration of he term hereof, or (b) If Lessee fails to ;make the rent as_vmeats as set forth herein and said payment is mot made within 15 days after written notice is give:. to Lessee, or (c) If Lessee fails to perform in acctrdan:.e with any of the other terms and conditions herein container:., and such default is not cured within. 30 days after writ::e : :..;-ice is given to Lessee, then Lessor, at Lessor's option and without further notice or demand to Lessee, may enter i.-:ro possession.'of the Premises and all improvements thereon and _rove all -persons therefrom and may either take possession vi a_l furniture, equipment, and other personal property of Lessee found on the Premises or remove such property or any cart of it and store it at Lessee's expense. Lessor may then either terminate this lease or relet the Premises. In the event Lessor elects to relet the Premises for such rent and upon such terms es Lessor may be able co obtain, Lessee shall continua to pay any difference '0e7...4e,I . the rent.obtained by such reletting and the rent cue here::::ccr. 24. BANKRUPTCY OR INSOLVy2:CY: If Lessee is adjudicate:; a bankrupt or r.-a._es an essignne..z for the.benefIt ___ors, or is the leasehlc: nterest is sold arc's: 1eca'_ G_Seo , or ;..dement', Lessor shall have the rim :. to terminate tree lease eed • re-enter the Premises withcet netice or demand. a This provision shall not apply to any sale made under the provisions of Paragraph Number 9. 25. JSUBLEASE AND ASSIGNMENT: Lessee shall not sublease the Premises or any part thereof nor assign this lease to any other person or firm without first obtaining Lessor's written approval therefor. 26. INSPECTION OF PREMISES: For the purpose of inspection, Lessor hereby reserves the right to enter upon any part of the Premises at any time during the period the business is to be open under the terms of this Lease. 27. NOTICES: All notices and rental payments shall be sent to the parties at the following addresses: LESSOR: The City of Miami, Florida P.O. Box 708 Miami, Florida 33133 LESSEE: Biscayne Bay Restaurant Corporation 2977 Redondo Avenue Long Beach, California 90608 Lessor and Lessee may change such addresses at any time upon giving the other party written notification. All notices under this lease must be in writing and shall be deemed to be served when delivered to the address of the addressee. A11 notices served by mail shall be registered mail, return receipt requested. Lessee may designate additional persons for notifi- cation of default. ' - 17 - 28, ATTORNEY FEES: Lessee agrees to pay the cost of collection and ten percent attorney's fee on any part of said rental that may be collected by suit or by attorney after the same is past due. 29. WAIVER: Nu waiver by Lessor at any time of any Of the terms or conditions of the lease shall be deemed a waiver at any time thereafter of the same or any other terms or conditions hereof. 50. TIME OF ESSENCE: Tine shall be of the essence of this lease. 31. TERMS BINDING ON SUCCESSORS: All of the terms and conditions of this lease- shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. 32. COVENANT OF SPECIALTY RESTAURANTS CORPORATION: SPECIALTY RESTAURANTS CORPORATION, in order to induce the CITY Or MIAMI to enter into this lease agreement with BISCAYNE BAY RESTAURANT CORPORATION, covenants and agrees as fellos: SPECIALTY RESTAURANTS CORPORATION hereby covenants and agrees that it shall be firmly bound to and guarantees the terms and conditions of the lease agreement, and shall be jointly and sever ally liable eider the terms and conditions of the lease agreement as BISCAYNE BAY RESTAURANT CORPORATION. Upon failure of BISCAYNE BAY RESTAURANT CORPORATION to comply with each and every term and condition of this lease agreement for any reason whatsoever, then SPECIALTY RESTAURANTS CORPORATION shall perform and do all things required to be done to the same extent as BISCAYNE BAY RESTAURANT CORPORATION would have been required to do. The term of this covenant shall be from the effective date of this agreement to February 1, 1976. - 1•a - SPECIALTY RESTAURANTS CORPORATION further covenants that BISCAYNE BAY RESTAURANT CORPORATION is a wholly owned sub- sidiary'of SPECIALTY RESTAURANTS CORPORATION, and that the directors of SPECIALTY RESTAURANTS CORPORATION shall be the same as the directors of BISCAYNE BAY RESTAURANT CORPORATION during the entire term of this lease agreement. 33. SIGNS: No signs whatsoever, ic1uding. advertising signs, shall beerected or permitted upon the Premises until the plans therefor have first been submitted to the City Manager of the City of Miami, and. he shall approve said plans for the design and construction thereof in writing. IN WITNESS WHEREOF, the parties have executed this lease on the date first above written. THE CITY OF MIAMI, Lessor By Attest: City Clerk Attest: BISCAYNE BAY RESTAURANT CORPORATION, Lessee By Q.IJ c_. Attest: Segb`etary cretary President SPECIALTY RESTAURANTS CORPORATION G4SJ.a-vim C. ' President - 19 - EXHIBIT "A" '70 JUL I 4M ID : 39 Commence at the southeast corner of Section 17, Township 54 South, Range 42 East; thence run north 89° 56' 49.5" west for a distance of 2,649.84 feet, more or less, to a point of intersection with the center line of Rickenbacker Causeway as shown in Plat Book 74, at Page 9, Sheet 2, of the Metropolitan Dade County Bulkhead Line; thence run north 45° 22' 07" west along said center line of Ricken- backer Causeway and its northwesterly prolongation thereof for a distance of 4,700.21 feet to a point; thence run north 44° 37' 53" east for a distance of 520.00 feet to the Point of Beginning of the hereinafter described tract; thence run north 45° 22' 07" west for a distance of 602.87 feet to a point; thence run south 60° 16' 53" west for a distance of 180.00 feet; thence run north 29° 43' 07" west for a distance of 100.00 feet; thence run north 60° 16' 53" east for a distance of 359.69 feet to a point; thence run south 45° 22' 07" east for a distance of 650.70 feet to a point; thence run south 44° 37' 53" west for a distance of 200.00 feet to -the ••- Point of Beginning. For information and further identification see attached map. Signature for B CAYNE BAY RESTAURANT CORPORATION, a wholly -owned subsidiary of SPECIALTY RESTAURANTS CORPORATION for E CITY eF MIAMI