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HomeMy WebLinkAboutCRA-R-14-0022 Exhibit 1LEASE AGREEMENT between EUE/SCREEN GEMS LTD, INC., a Flori as Tenant v �w ration OMNI REDEVELOPMENT DIOMMUNITY REDEVELOPMENT AGENCY 4S' as Landlord For the Use of THE PRO ` :' OCATED AT 50 NW 14th STREET, MIAMI, FLORIDA he MIAMI ENTERTAINMENT COMPLEX dated ,2014 LEASE THIS GROUND LEASE ("Lease") is entered into by and between OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT ("Landlord"), and EUE/SCREEN GEMS LTD, INC., a Florida limited liability ("Tenant"). RECITALS: A. Landlord is the owner of certain Property located in the City of Dade County, Florida, shown on Exhibit A attached hereto ("Premises") and b incorporated herein. B. Landlord desires to lease to Tenant the Premises as Exhibit A attached hereto, and Tenant desires to rent the Premises fro AGENCY company iami- re'erence y described in 1brd. NOW, THEREFORE, for good and valuable considera 'b the sufficiency of which is stipulated hereto, the Landlord and Tenant hereby agree as foll ARTICLE 1 (:) Lease of P �,. ert 1.1 Premises Leased. Landlord, in conditions herein set forth, hereby leases Landlord, the Premises, together appurtenances thereto and all improv, on of the rents, covenants, agreements and t, and Tenant hereby rents and leases from of Landlord's rights, interests, estates and ereon. 1.2 Premises Defined. e Premises and the rights, interests, estates and appurtenances leased to Tenant pursuant fie n 1.1, together with all improvements now or hereafter constructed thereon, are h rei ter collectively referred to as the "Premises." 1.3 Habe'O HAVE AND TO HOLD the Premises, together with all and singular the rights, privileg d appurtenances thereunto attaching or in any way belonging, exclusively unto Tenan ccessors and assigns, for the term set forth in Article 2, subject to termination as herei r ' d, and subject to and upon the covenants, agreements, terms, provisions and limitain set forth. ARTICLE 2 Term of the Lease 2.1 Effective Date Defined. The date upon which the last of the parties hereto executes this Lease is hereinafter referred to as the "Effective Date" and actual possession is provided to the Tenant. Landlord Initials: Tenant Initials: Page 1 2.2 Term. The term of this Lease shall be for ten (10) years from the effective date unless extended as set forth herein. 2.3 Renewal Option. Tenant (or any assignee, subtenant or other transferee of Tenant as authorized herein) is hereby granted the option to extend the Lease Term for one (1) renewal option of ten (10) years ("Extension Term"), provided (a) Tenant is not in default under t Lease beyond any applicable notice and cure periods at the time of exercise of the resp tive option, nor at the commencement date of the applicable Extension Term, and (b) Tent written notice of its exercise of the respective option no less than one hundred eighty i :1 . ys prior to the expiration of the Initial Term. The Extension Term shall comme e day immediately following the scheduled date of expiration of the Initial Tenn and upon the same terms, conditions and rentals as were in effect hereunder during the I it i erm unless ARTICLE 3 ,G,1*'S) Rent; Improvements 3 1 Rent Commencement Date and Lease, .�1 fined. "Rent Commencement Date" shall mean the date the Tenant obtains a 'Cicate of Occupancy or Temporary Certificate of Occupancy for the Premises after t ant ork, as defined herein, is completed and shall be pro rated as necessary.. "Lease ' shall mean each consecutive period of twelve (12) full calendar months, follow ent Commencement Date. If the Rent Commencement Date is a date other tha day of a calendar month, the first Lease Year shall include that fractional portion endar month in which the Rent Commencement Date occurs and the first full twelv ) nths thereafter, and the last Lease Year shall end on the expiration or earlier termina.'. of s Lease. Once the Rent Commencement Date has been established, the parties shall - - to a rent commencement date letter, in the form attached hereto as Exhibit " ", me li mg the Rent Commencement Date and the last day of the Original Term. modified in writing as specified herein. Landlord wi obligatio not ti . pro • s • - arr 0.re the Security Deposit to its original amount, if and when it is determined that the Tenant as in fact in default and liable for said rent or damages. Any remaining balance of the Security *• Deposit will be returned by Landlord to Tenant at the Expiration Date of the Lease provided that ,,s,‘ Tenant shall have made all payments and performed all material covenants and agreements in this Lease. 3.2 Secosit. Tenant acknowledges its obligation to deposit with Landlord a Security Deposit mount of $125,000.00 at the time of the Effective Date, to be held by in -rest as security for the performance by Tenant of Tenant's covenants and this Lease. Upon the occurrence of any event of default by Tenant, which is d, Landlord may, from time to time, without prejudice to any other remedy ein or provided by law, use such funds to the extent necessary to make good any rents and any other damage, injury, expense or liability caused to Landlord by such n� default, and Tenant shall pay to Landlord on demand the amount so applied in order to Landlord Initials: Tenant Initials: Page 2 3.3. Rent. Tenant shall pay rent to Landlord in the amount of $100,000.00 to be paid in monthly installments of $8,333.33 and an additional eleven percent (11%) of any Gross Sales (as defined herein) above $750,000.00 made by Tenant for each year of the of the Lease. During the Extension Term, Tenant shall pay rent to Landlord in the amount of $100,000.00 to be paid in monthly installments of $8,333.33 and an additional eleven percent (11%) of an Gross Sales above $750,000.00 made by Tenant for each year of the of the Extension Term. 3.3.1. "Gross Sales". "Gross Sales" shall mean and include the entire amou sales price, whether for cash or otherwise of all sales of merchandise and services, n. • er receipts whatsoever, of all business conducted in or from the Premises, by the Te which the Tenant actually receives any such proceeds. Gross Sales do not include, hi any sums collected and paid out for any sales or excise tax imposed by any duly consti te. • overnmental authority, nor does it include bad checks net of recovery, and bank char .. 'or counterfeit currency. (a) Notwithstanding the above, Tenant has the right tu t, waive, or otherwise negotiate any proceeds due to it or sales prices for services . ' andise from a client or customer in the normal course of business. If Tenant does in f scount, waive, or otherwise negotiate any proceeds due to it from a client or customer . normal course of business or the sales price for services or merchandise, then that i• .f the sales price that has been discounted, waived, or negotiated shall not be used] t e culation of Gross Sales. (b) If it is discovered upon an audit \.. r t'ant to Article 15 of this Lease that any discount, waiver, or other negotiation of sa - 1 _ - as detailed in Section 3.3.3(a) is done with the intent to reduce Gross Sales in ► . • defraud Landlord, Tenant hereby agrees to immediately remit the difference plu . cent (10%) penalty on the difference to Landlord upon discovery and demand. 3.3.2. Accounting a ent of Gross Sales. On or before the twentieth (20th) day of each calendar quarter durin • Lease Term, Tenant shall prepare and deliver to Landlord at Landlord's notice address red statement of Gross Sales made from the Premises during the preceding quarter. I di` en, within sixty (60) days after the expiration of each calendar year and within sixty .: i . . fter the termination of this Lease if this Lease should not terminate at the end of a cale ear, Tenant shall prepare and deliver to Landlord at Landlord's notice address a st. t .f Gross Sales made from the Premises during the preceding calendar year (or parti ai ar year), certified to be correct by an officer of Tenant, or an independent Certifi:. is Accountant. Tenant shall furnish similar statements for its licensees, co . es and subtenants, if any. All such statements shall be in such foriu as the Landlord re; and, if requested by Landlord, Tenant shall also provide to Landlord copies of sales submitted by Tenant to the applicable governmental authority of the Applicable State. e . nt shall keep in the Premises a permanent, accurate set of books and records of all sales of erchandise and revenue derived from business conducted in the Premises, and all supporting records such as tax reports and banking records. Tenant shall retain and preserve all such books and records for at least five (5) years after the end of the calendar year to which they relate, which books and records are subject to inspection and audit by Landlord and its agents at all reasonable times. If any books and records relate to a matter that is in dispute between Landlord Landlord Initials: Tenant Initials: Page 3 and Tenant, then Tenant shall retain such books and records until such dispute has been resolved, even if such period of time exceeds five (5) years. 3.3.3. Confidentiality. Landlord shall use reasonable good faith efforts to keep confidential all sales reports, and financial statements supplied by Tenant; however, Landlord_ has the right to reveal such information to mortgagees, prospective purchasers and prospect mortgagees (and their respective agents in such regard) and to Landlord's managers, bre {eis, employees, agents, development and administrative officers and personnel, professional dv and consultants, and Landlord shall further have the right to reveal such informatio required by law or in connection with legal proceedings. 3.4 Additional Rent and Rent Defined. The term "Additional Re t` mean all amounts required to be paid by Tenant under the terms of this L r than rent. Notwithstanding any provision of this Lease to the contrary, in all eve , e ant shall not be required to pay any Additional Rent under any provision of this Le ther, to the extent provided under 4.1. Tenant shall pay ad valorem taxes, if any, di c ly t Miami -Dade County, Florida beginning with the ad valorem taxes due for the tax ye. Prior to that time, the Landlord shall be responsible for all ad valorem taxes, if an 4� -nant shall pay charges for utilities directly to applicable utility companies as separa - m -nts, as elsewhere provided in this Lease. Landlord represents and warrants to Tenan f the Effective Date, all accounts with any and all applicable utilities providers ar ct, and in no event shall Tenant be required to pay any past due payments for period e prior to the Effective Date. 3.5. Payment of Rent. Rent sha paid to Landlord by Tenant in monthly installments in advance on the first day t e. alendar month in lawful money of the United States of America without notice or de ' ' . ► s the original or changed address of Landlord as set forth in Section 16.1 or to such er .: sons or at such other addresses as Landlord may designate from time to time writ to Tenant. If the Rent Commencement Date or termination or expiration date s Lease is other than the first day of a month, Tenant shall be required to pay a pro rata p . ' o ' the monthly installment of Rent for any partial month. Rent shall be paid as herein setIf the due date of the Rent is on a weekend of Federal Holiday, then the rent will be e next business day. 3.6. N. :.. - ent. Except as otherwise expressly provided in Section 3.1 and 3.3(a) above, Flori w, ' d otherwise in this Lease, no happening, event, occurrence or situation during th� whether foreseen or unforeseen, and however extraordinary, shall relieve Tenant �p �t; obligations hereunder to pay rent, or entitle Tenant to an abatement of rent. 0 �7! Late Charge. If Tenant fails to pay any installment of rent on or before the tenth ay of the calendar month for two (2) consecutive calendar months in any Lease Year, Tenant shall pay to Landlord, in addition to the installment of rent, five percent (5%) of ch installment, as a late payment fee, beginning with the second (2nd) late installment and upon any subsequent late installments during the applicable Lease Year. 3.8. Payment of Rent Upon Assignment of Landlord's Interest. Landlord shall promptly give written notice to Tenant if Landlord assigns its interest in, or its right to receive Landlord Initials: Tenant Initials: Page 4 rent under, this Lease to a third party or if any third party other than Landlord is ever entitled to collect any amounts payable by Tenant hereunder. (a) Until Tenant receives written notice from Landlord of any assignment or transfer of the right to collect rent, together with a copy of the fully executed deed or other transfer_, document, payment of rent by Tenant in accordance with the provisions of Section 3.5 s satisfy Tenant's obligations under the Lease. (b)iIV If Landlordgives Tenant written notice that a third partyis entitled to r�� -i y � y payments of rent and Tenant thereafter pays such sum(s) to the party named in the • • i c nant shall be deemed to have discharged its obligation under this Lease with respect t um(s). (c) If Landlord's interest in this Lease is ever owned by more tha,yperson, firm, corporation or entity, such parties shall arrange among themselves for e i execution of a notice specifying one (1) such party or agent and an address therefor o eceipt of notices to Landlord under this Lease and to which all payments to Landlord r th Lease shall be made, and notices delivered and payments made by Tenant in accor c h such jointly executed notice shall constitute notice and payment to all parties inclu(thin the term "Landlord." Until Tenant receives written notice signed by all such s, .ayment of rent by Tenant in accordance with the provisions of Section 3.5 shall sati is obligations under the Lease. 3.9. Improvements. Tenant covenan •ii. - on or before October 31, 2015, Tenant shall complete all real and moveable personal . • - . y improvements to be located upon the Premises ("Improvement Completion"), for e Landlord has agreed to provide the Tenant with US $11,500,000 to pay for such i nts. Landlord and Tenant have entered into a Memorandum of Understanding, wh.: a .. ached hereto as Exhibit " _" and incorporated herein, pursuant to which the Lan d agreed to pay for the improvements made by the Tenant that are within the approbu t therein. 3.9.1. Tenant's Wo4i On'Ehe Effective Date, Tenant agrees to accept possession of the Leased Premises and proc prepare the Leased accordance with, ("Tenant's Work Tenant shall and speci equip part Landlord agrees to pay for all work described for in Exhibit " " up to US$11,500,000, 00 shall pay for such work as requested by the Tenant as for fully set forth in Exhibit " h due diligence, to perform all other work which is necessary to e for opening and operation for business with the public, in more particularly described in, Exhibit ` "' annexed hereto in one hundred and fifty (150) days after the execution of this Lease, andlord, in advance of Tenant's commencement of Tenant's Work, plans showing a layout, fixturing plans, interior finish, store front and any work or done or installed by Tenant affecting any structural, mechanical or electrical ased Premises or the Building containing same. Tenant shall be solely responsible for obtaining all applicable permits, including but not limited to building permits as well as all final inspections and certificates of occupancy, if any. Tenant shall be responsible for all related fees associated with any such permit or inspection which may be covered by the US$11,500,000.00 provided by Landlord. Landlord shall use its Landlord Initials: Tenant Initials: Page 5 best efforts to assist the Tenant in any applications for permits as reasonably necessary and requested. ARTICLE 4 4.1. Improvements. Theparties agree that notwithstandinganypro o of'this P Improvements, Utilities, Net Lease Lease to the contrary, in all events, at all times during the term of this Lease, all Premises and Improvements to the Premises shall remain solely Landlord's prop rt "Tenant Improvements"). Alterations and improvements constructed by Tenant o ng buildings shall not be included within the term Tenant Improvements, but rat 1 remain solely Landlord's property. Any improvements made prior the execution is Lease and any alternations or improvements (including Tenant's trade fixtures n.vea le furniture, or other fixtures which are decorative in nature) which were paid with1n._ s s funds shall remain the property of Landlord. 4.2 Utilities. (a) Landlord's Utilities Obligations. Landlord shall be responsible, at its sole cost Premises, at locations requested by Tenant, limitation, water, fire hydrants, gas, sto communication services) required for 0 On o befdre the effective date of this Lease, a e nse, for bringing to the boundary of the lines and connections (including, without nitary sewer, electricity, telephone and other intended use of the Premises. (b) Tenant's Utilities Ob atio _ . Except as set forth in Section 4.2(a), Tenant shall be responsible, at its sole cost . -xpense, for obtaining, connecting, installing, repairing and maintaining all utility lines, e ions and facilities on the Premises and shall pay all charges for gas, electricity, telephk - - a other communication services and all other utilities and similar services rendered or •lid 'o the Premises, and all water rents, sewer service charges or other similar charges ley' - �' . . rged against, or in connection with, the Premises. 4.3. billbsion. If subdivision is required by any Governmental Authority as a condition nt to Tenant's use of the Premises and any such Governmental Authority require e in the subdivision plat submitted by Tenant which would materially adversely affect - - . s use of the Premises, Tenant shall have the right to tenninate this Lease. ARTICLE 5 INTENTIONALLY DELETED. Landlord Initials: Tenant Initials: Page 6 ARTICLE 6 Landlord's Warranties and Covenants 6.1. Authority to Lease. Landlord warrants and represents to Tenant that it has good and marketable fee simple title to the Premises owned by Landlord and has full right, power a authority to enter into this Lease. Landlord further warrants that (i) no construction has been performed on the Premises during the six (6) month period prior to the execution of thi L and (ii) there are no mortgages, deeds to secure debt, or other liens or conveyances s u ity title affecting the Premises which are superior to this Lease or which could a the termination of this Lease except those listed on Exhibit " " attached hereto. 6.2. Dedications and Easements. Landlord covenants in favor ant that at all times during the term of this Lease, no existing or future documents g declarations, development, easements, covenants and restrictions affecting the s, or any portion thereof, shall be adopted or, if already adopted as of the Effect' -e 1 at , utilized in a manner which contradicts the terms and provisions of this Lease incl� _, thout limitation, the use rights in favor of Tenant set forth in Section 8.1 of this Lease. '4 ect to the foregoing, Tenant shall have the right to review any and all existing and fu i ' oc ments regarding declarations, development, easements, covenants and restrictions i n. y affecting the Premises, or any portion thereof. In order to develop the Premises with th provements, it may be necessary or desirable that street, water, sewer, drainage, gas, ,. lines, setback lines and other easements, dedications and similar rights be granted or dedi ver or within portions of the Premises by plat, replat, grant, deed or other appropriate nt. To the extent any of the aforementioned are required by any governmental author' t - lie utility, Landlord shall, on written request of Tenant, support and cooperate with ' . t in executing and delivering such documents, in recordable form, from time to ti roe shout the Term, as may be reasonably appropriate, necessary or required by any g. -rnme tal authority, public utility or company for the purpose of granting such easement s ne . edications. Tenant shall be solely responsible for any associated costs of the afore rationed, which shall be paid by the Landlord with the funds set forth in the MOU as autho3s erein. 6.3. Co :. ' ' s ' s Premises Upon Delivery; Zoning. Landlord warrants and represents that the current zo of the Premises would permit a film studio. On or before the Delivery of the Premise dl s d shall ensure that: ord will not take any action to change the current zoning designation that would prevenant from readily obtain all permits necessary for Tenant to start construction. b) all required storm sewer and off site storm water retention/detention serving the ises are operational. Landlord Initials: Tenant Initials: Page 7 ARTICLE 7 Construction 7.1. Construction of New Improvements. Tenant shall have the right, from time to time and at any time, to demolish and remove any improvements or portions of improveme situated upon the Premises, to construct replacement improvements for improvemen removed or to construct, remove and reconstruct new buildings and other improvemen Premises. Any improvements constructed by Tenant on the Premises shall be su.'-ct,�Che provisions of Section 7.4 below and shall be constructed in accordance with thction Standards (defined in Section 7.3). "Improvements" shall mean any bui1 ,' tructures, signage or other improvements located at any time upon the Premises. 7.2. Alterations. At any time and from time to time during , Tenant may perform such alteration, renovation, repair, refurbishment and other with regard to any Improvements as Tenant may elect, provided that the same is4j�e, i accordance with the Construction Standards. 7.3. Construction Standards and Liens. (a) Standards. Any Improvements sh renovation, repair, refurbishment or other w accordance with the following standards (" constructed, and any alteration, ith"regard thereto shall be performed, in ction Standards"): (1) All such constru o work shall be performed in a good and workmanlike manner in aco rl with good industry practice for the type of work in question. (2) All suc nstruction or work shall be done in compliance with all applicable deed cti%ns, building codes, ordinances and other laws or regulations of Governmenorities. and a ob • (3 T. -.nstruction or work shall be commenced until all licenses, permits ions required of all Governmental Authorities having jurisdiction are (4) Tenant shall have obtained and shall maintain in force and effect the ranee coverage required in Article 9 with respect to the type of construction or ork in question. (5) After commencement, such construction or work shall be prosecuted with due diligence to its completion. (b) Mechanic's and Materialmen's Liens. Tenant shall have no right, authority or power to bind Landlord or any interest of Landlord in the Premises for any claim for labor or for material or for any other charge or expense incurred in constructing any Improvements or performing any alteration, renovation, repair, refurbishment or other work Landlord Initials: Tenant Initials: Page 8 with regard thereto, nor to render Landlord's interest in the Premises liable for any lien or right of lien for any labor, materials or other charge or expense incurred in connection therewith. Tenant shall not be considered the agent of Landlord in the construction, erection or operation of any such Improvements. If any liens or claims for labor or materials supplied or claimed to have been supplied to the Premises are filed, Tenant shal diligently pursue the release or discharge thereof and indemnity Landlord against any s liens or claims. 7.4. Signs/Murals/Cellular or Radio Towers/Satellite Related Equipment. a rd has the sole authority to contract for any offsite signage including murals as s lular and Radio Towers and Satellite Related Equipment. Landlord agrees t stall any offsite signage, mural, cellular or radio tower, or satellite related eq i n that will negatively affect Tenant's Gross Sales. Landlord shall be solely res or the cost of installation and maintenance. All offsite signage, murals, Cellular dio Towers and Satellite Related Equipment shall comply with all applicable la s, a es, regulations, and ordinances. Seventy-five percent (75%) of any profits from f si e signage, murals, and Cellular and Radio Towers shall belong to Landlord any ive (25%) of any profits from any offsite sign, mural, and Cellular and Radio T.we.11 be given to Tenant. This twenty (25%) of offsite sign, mural, and Cellular dio profits shall be considered a part of Gross Sales as defined herein. If any offs i• ural, or Cellular or Radio Tower is installed by any party other than Landlord,ny p fits from that offsite sign, mural, or Cellular or Radio Tower shall count towar Tenant as described herein. 7.4.1. Permitted Use of Roof. business any structure on the ro with all Local, State, and Fede unreasonably withheld or ayed. wenty five percent (25%) profit share of nt may install for its business and or related em so long as it is structurally sound and complies upon written consent of Landlord, which shall not be 7.5. Tenant's E ui ent"Defined. The term "Tenant's Equipment" means all trade fixtures and personal rty brought onto the Premises or installed by Tenant, including, without limitat f ishings, furniture, equipment, sign faces, computers, computer related equi . property, Hebert units, cabling, tubing, pneumatic tubing, safes, halon systems, an. • er equipment or property useful to Tenant in its operations, for use in connec '® it the conduct of Tenant's business regardless of the manner in which they are Ownership and Removal of Tenant's Equipment. Tenant's Equipment shall be the property of Tenant. Within sixty (60) business days following the expiration or ination of the Term, Tenant shall have the right, but not the obligation, to remove all Tenant's Equipment from the Premises; provided, however, that Tenant shall repair any damage caused by such removal. Any equipment not removed within sixty (60) business days shall become the sole property of Landlord. Landlord Initials: Tenant Initials: Page 9 ARTICLE 8 Use, Maintenance and Repairs 8.1. Use. Subject to the terms and provisions hereof, Tenant shall have the right to and enjoy the Premises in a lawful manner for the purpose of constructing a state oI art soundstage and production facilities where motion pictures and televisio 1.r r s can be produced and other similar purposes and ancillary services inclu• g, .0 not limited to the following: two dimensional and three dimensional ani cameras, casting, catering, dollies, cranes, technocranes, editing systems ice, film commission office, golf cart rental, lighting and grip, payroll portable air conditioning and heating, chillers, handlers, production ser •gging, satellite uplink/transmission, sound mixing/ADR, special effects, tel mobile units, and transportation. In addition, the Premises may be used for o e la ' 1 purposes subject to Landlord's prior written consent, not to be unreasonab i ld by Landlord. Tenant shall not use or occupy, knowingly permit the Premises .$ used or occupied, nor do or knowingly permit anything to be done in or on the ' is -s in a manner which would (a) in any way make void or voidable any insura - in force with respect thereto, (b) make it impossible to obtain the insurance r quire o be furnished by Tenant hereunder, (c) constitute a public or private nuisance otherwise prohibited by law. 8.2. Maintenance and Repairs. S enant's rights under Article 7, Tenant shall take good care of the Premises, ►q : repairs thereto, interior and exterior, structural and nonstructural, ordinary an : inary, foreseen and unforeseen and shall maintain and keep the Premises and i. ' alks and curbs located within the Premises in good order, repair and condit . at a times. Tenant will not commit, knowingly permit or suffer any waste, da ► e . isfigurement or injury to or upon the Premises or any part thereof, but this Secti. sha 1 not be construed as limiting Tenant's rights under Article 7. Notwithstanding tgoing, however, Tenant shall not be responsible for repairing or rebuilding thtures already occupying the Premises as of the date of this Lease for age related tear or for damage to said structures caused by acts of God. 8.2. a t, at its sole cost and expense, agrees to keep in force a maintenance a . e - on all HVAC equipment and to provide a copy of such maintenance nt to Landlord for Landlord's approval, which shall not be unreasonably held. The agreement shall require a semiannual inspection of such equipment and enant will furnish Landlord with semiannual certifications by the inspection company that such equipment is in good repair. Any repairs or replacement required to be made to such HVAC equipment shall be done or made only by such persons or entities duly licensed and as have been approved in advance in writing by Landlord. 8.2.2. After the end of the tenth (10th) year of the Lease, the Landlord shall keep the foundation, structural elements (except plate glass, windows, doors and other exterior openings, window and door frames, molding, closure devices, locks and hardware, special store fronts, lighting, heating, air-conditioning, plumbing and other electrical, Landlord Initials: Tenant Initials: Page 10 mechanical and electromotive installation equipment and fixtures, signs, placards, decorations or other advertising media of any type, or interior painting or other treatment of interior walls which will be maintained by Tenant at Tenant's sole cost and expense), structural portion of exterior walls and the roof above the Premises in good repair. In the event that the Premises should become in need of repairs required to be made b Landlord hereunder, Tenant shall give immediate written notice thereof to Landlord Landlord will have a reasonable time after receipt by Landlord of such written not which to make such repairs at its own cost and expense. Should the Landlo fa make the repairs in a reasonable time after receiving notice, the Tenant ma naa repairs and offset any expenditures against future rent. 8.2.3. Landlord is entitled to enter upon the Premises at any time fo o easonable advance notice (except in the event of a real or apparent emerge , i ich event no such advance notice shall be required) for the purpose of ins he same, or of showing the Premises to prospective purchasers, tenants or le , .r of making repairs to the Premises, or of making repairs, alterations or additi s o (a adjacent premises, or (b) the building systems serving the building within w t remises are located. At no time, shall the Landlord's right to enter the prem interfere with the Tenant's business, be used to harass the Tenant, or inter — wi the Tenant's right to quiet enjoyment and the peaceful use of the Premi � Premises shall not be shown to prospective purchasers, tenants or lenders, durin the Term until the last year of the Lease, unless the Tenant has exercised it , to renew. If the Tenant has exercised its option to renew the Lease, the Premi es not be shown to prospective purchasers, tenants or lenders, until the last year gf `i - tension Teini. 8.3. No Operating Covert long as Tenant continues provisions of this Lea open, staff or conti consecutive mont months prior such nine in the Pr A to ev withstanding anything herein to the contrary, for so paent and maintain the Premises in accordance with the nant shall not be in default of this Lease but if Tenant fails to ly operate its business for a period of at least forty-two (42) lord would have the right to terminate this Lease on nine (9) otice from Landlord to Tenant; provided, however, that during notice period, Tenant shall be entitled to resume business operations n which event Landlord shall not be entitled to so terminate this Lease. tioi2'pursuant to this Section shall not constitute a default by Tenant, and in the valid termination by Landlord pursuant to this Section, the parties shall have r liability or obligation under this Lease. ARTICLE 9 Employment 9.1. Equal Employment Opportunities. Tenant agrees that during the tern of the Lease, (a) it will not discriminate against any employee or applicant for employment because of race, creed, color, place of birth, religion, national origin, sex, age, marital status, veteran and disability status and will take affirmative action to assure that Landlord Initials: Tenant Initials: Page 11 applicants are employed and that employees are treated during employment without regard to race, creed, color, place of birth, religion, national origin, sex, age, marital status, veteran and disability status; (b) post in conspicuous places, available to employees and applicants for employment, notices, the form of which is to be provided to Landlord, setting forth provision for this nondiscrimination clause; and (c) in al solicitations or advertisements for employees placed by or on behalf of Tenant shall s that all qualified applicants will receive consideration for employment without reg race, creed, color, or national origin. 9.2. Non -Discrimination. Tenant represents and warrants to Landlo . a 't will comply with Sections 18-188, 18-189, and 18-190 of the City ' i Code incorporated herein. Tenant hereby represents and warrants that it • _s ; • and will not engage in discriminatory practices and shall not discriminate in co ' e i • with Tenant's use of the Premises on account of race, national origin, ancestr c s o ex, religion, age, handicap, familial status, marital status, or sexual oriention. urthermore, should Tenant have existing or introduce membership rules for + . at the Premises, that it will comply with the non-discrimination provisions ied within Section 18-188 to 18-190 of the Code of the City of Miami, as ens. and incorporated herein by reference. 9.3. Internship Opportunities. Tena from a higher educational facility, includ'. work at the Premises during the term 10.1. Landlord's I compensation, co Landlord shall ob damage to obligated greeso hire a minimum of four (4) interns not limited to the Hospitality Institute, to se. 40:497LE 10 ace and Indemnity Landlord shall be entitled to self -insure for workers' ial general liability, auto liability or any other coverage except nd keep in force all risk property insurance covering loss or nd personal property except for that property which Tenant is under Section 9.2. 10.2,('l a is Insurance. Tenant shall maintain during this Lease, insurance re,�ui ellits pursuant to Exhibit " Waiver of Subrogation. Landlord and Tenant agree that all policies of insurance be kept and maintained in force by the respective parties hereto, shall, unless prohibited by law or other regulation having the effect of law, contain provisions in which the rights of subrogation against the Landlord and Tenant are waived by the insurance company or carriers insuring the Premises, any building, or other property in question. Landlord expressly waives any right of recovery against Tenant for damage to or loss of the building, the Premises, or the improvements thereon, which loss or damage may arise by fire or any other peril covered by any policy of insurance required to be maintained pursuant to this Lease which contains or is required to contain waiver of subrogation rights against Tenant pursuant to this Section, and Landlord shall make no Landlord Initials: Tenant Initials: Page 12 claim for recovery against Tenant therefor. Tenant expressly waives any right of recovery against Landlord for damage to or loss of its fixtures, improvements, or other property located in the Premises, which damage or loss may arise by fire or any other peril covered by any policy of insurance maintained or required to be maintained pursuant to this Lease which contains or is required to contain a waiver of subrogation right against Landlord as set forth in this Section, and Tenant shall make no claim recovery against Landlord therefor. 10.4.(a). Tenant's Indemnity. The Tenant shall indemnify, protect, defe ar 1d harmless the Landlord and its employees, from and against any and all i suits, actions, damages or causes of action of whatever nature arising o . e use or operation of the Premises or the surrounding areas, whether such clai s .e made by the Tenant, or an employee, agent, contractor, invitee or gu-:' e Tenant, an employee, agent or official of the Landlord or by any third part a .. ether it relates to injury to persons (including death) or damage to property e ep - e it is alleged that the Landlordor its employees or officials were negligent t t ey acted intentionally. The Tenant shall, at its own cost and expense, pay a► $ - all costs related to any orders, judgments, or decrees which may be entere. th:'.n, and all reasonable costs, attorneys' fees, expenses and liabilities incurre.. about the defense of any such claims and the investigation thereof. The Te - .. t also indemnify, defend, protect and hold the Landlord harmless from and ains . ny and all claims arising from any breach or default in performance of any ion of the Tenant's part to be performed under the terms of this Agreement, o i' rom any act, neglect, fault or omission of the Tenant, its employees, agents, tr.. .rs, invitees, and guests, and from and against all reasonable costs, attorneys' - , . enses, and liability incurred in connection with any such claim or any actioner , o• - eding brought thereon. The Tenant reserves the right to retain counsel of its The Tenant shall in dimly notify the Landlord, in writing, of any claim or action filed, of whatever na e, arising out of the use or operation of the Premises by the Tenant, its em. o agents, contractors, invitees and guests. The Tenant shall also immediately e Landlord if the Tenant knows or has reason to believe a claim or action wi 1. : •, of whatever nature, arising out of the use or operation of the Premises by the na is members, agents, contractors, employees, or servants. 1 ! 4 . " Tenant's Indemnity. Landlord shall indemnify, protect, defend and hold ss the Tenant, its officers, directors, members, owners, shareholders and 0loyees, from and against any and all claims, suits, actions, damages or causes of ction of arising out or related to the negligent or intentional acts of the Landlord, its officials, agents, representative or employees, , whether such claim shall be made by the Landlord, or any official, employee, agent, contractor, invitee or guest of the Landlord, or by Tenant, its officers, directors, members, owners, shareholders and employees, or by any third party, and whether it relates to injury to persons (including death) or damage to property. The Landlord shall, at its own cost and expense, pay and satisfy all reasonable costs related to any orders, judgments or decrees which may be entered thereon, and all reasonable costs, attorneys' fees, expenses and liabilities Landlord Initials: Tenant Initials: Page 13 incurred in and about the defense of any such claims and the investigation thereof. The Landlord shall also indemnify, defend, protect and hold the Tenant, its officers, directors, members, owners, shareholders and employees harmless from and against any and all claims arising from any breach or default in performance of any obligation of the Landlord's part to be performed under the terms of this Agreement, or arising fro any act, neglect, fault or omission of the Landlord or its employees, agents, from against all reasonable costs, attorneys' fees, expenses and liability incurred in corn with any such claim or any action or proceeding brought thereon. .` The Landlord reserves the right to defend itself. Tenant reserves the 0 retain counsel of its choice. The Landlord shall immediately notify the Tenant, in writing, of a. : r .r action filed, of whatever nature, arising out of the Property. s e . - dlord shall also immediately notify the Tenant if it knows or has reason to be)iev- a claim or action will be filed, of whatever nature, arising from the Property. The Parties acknowledge and accept that the Landlo may be limited and will be limited to the extent a Statutes for property loss, property damage, arising out of, or resulting from the neglig to work perfoiiued by Landlord under thi demand shall arise out of, or result servants, agents, employees, or ass. ,,<,) ai or violation (s) of an applicable nsibility under this section e by Section 768.28, Florida to injury to persons or property or negligent act or omission relative ent, unless however, such claim, or negligence, or misconduct of Tenant, its claims in the nature of contract, equity, 10.5. Tenant's Rights hould any Improvements or Premises be wholly or partially destroyed or damage or any other casualty not due to the intentional or negligent acts of Tenant, Te nt 11 have the right to restore and reconstruct the Improvements or Premises. Not ith ing any provision of this Lease to the contrary, whenever under any provisio Lease, Tenant restores and reconstructs Improvements (other than Tenant I r . e e ents), Tenant shall be entitled to use the proceeds of Landlord's Prope Co age, if any, as this term is defined above in Section 9.1. If Tenant elects to r and reconstruct such Improvements, then rent shall abate to the degree the P -y .re unusable for Tenant's business purposes until such time as Tenant has fully and reconstructed such Improvements and the Premises are usable for Tenant's O s�nepNotwdnth, i ompletedsspurrestoration oses. or reconstructionithstaning ofatheyhing Improvements to te aftercontrarytwo f (2)Tenant years provhasidednot, SSC however, that such two (2) year period shall be extended by any period of Force Majeure, as defined under Section 16.13 of this Lease, any rent abatement shall end and Tenant agrees to pay the full then -applicable rental rate. Notwithstanding anything to the contrary, if any casualty occurs within in five (5) years after the Effective Date, Tenant 1) shall not have the right to terminate pursuant to this Section 10.1 and 2) further covenants and agrees to use all insurance and other proceeds, if any, to rebuild the Improvements in the manner as originally contemplated by this Lease. Landlord Initials: Tenant Initials: Page 14 Tenant may reconstruct any such building using Landlord's insurance proceeds, if any. During the period of any reconstruction or repair pursuant to this paragraph, all rental shall abate to the degree the Premises are unusable for Tenant's business purposes. Tenant's rent shall be abated proportionally until such time that it can use the Premises for the uses and purposes contemplated hereby and the reconstruction or repair i finished. If the Premises is rendered wholly untenable it cannot be used by the Tenant the use and purposes contemplated hereby, then rate will be abated in its entirety ntil such time as can fully operate is business out of the Premises as inte do 10.2. Notice of Damage. Tenant shall immediately notify Landlord of0struction or damage to the Premises. contemplated by this Lease. ARTICLE 11 Condemnation 11.1 Total Taking. Should the entire Premises be hich term, as used in this Article, shall include any conveyance in avoida ' s ttlement of eminent domain, condemnation or other similar proceedings) by ernmental Authority, corporation or other entity under the right of eminent dom. i ondemnation or similar right, either party may cancel this Lease with thirty ( s written notice to the other party. Any award therefor will be distributed as foil s: i) first, to the payment of all reasonable fees and expenses incurred in colle i `• - award, (ii) second, to Tenant in an amount equal to the unamortized cost of vements (assuming that the Improvements are amortized over the Original TLease), plus Tenant's moving expenses and (iii) the balance of the award s ► . b - ' quitably apportioned between Landlord and Tenant based on the then respe ve fa market values of Landlord's interest in the Premises (appraised by referen _ t 11 relevant factors including the income stream derivable by Landlord under this e nd the then present value of Landlord's reversionary interest in the entire Prem er expiration of the Original Term) and Tenant's interest in the Premises (ap by reference to all relevant factors, including the income stream derivable. from the Premises for the remainder of the Original Term). After the determinat d distribution of the condemnation award as herein provided, the Lease shall 'na$c, and the parties shall have no further rights, duties or obligations under the L. Partial Taking. Should a portion of the structure on the Premises be taken by any vernmental Authority, corporation or other entity under the right of eminent domain, condemnation or similar right , such that so much of the Improvements shall be so taken as to make it economically unsound to use the remainder for the uses and purposes contemplated hereby, , then this Lease shall terminate as of the date of taking of possession by the condemning authority in the same manner as if the whole of the Premises had thus been taken, should the Tenant so elect, and the award therefor shall be distributed as provided in Section 11.1. Should any other partial taking of the Premises occur, then this Lease nevertheless shall continue in effect as to the Premises, or the remainder thereof, as the case may be. In the event of a partial taking where this Lease is Landlord Initials: Tenant Initials: Page 15 not terminated, the rent payable during the remainder of the Term after taking of possession by the condemning authority shall be reduced on a just and proportionate basis having due regard to the relative value and square footage of the portion of the Premises thus taken as compared to the remainder thereof and taking into consideration the extent, if any, to which Tenant's use of the remainder of the Premises shall have been,S) impaired or interfered with by reason of such partial taking. 11.3 Award on Partial Taking. In the event of a partial taking where this Le terminated, and as a result thereof Tenant will need to restore, repair or remainder of the Premises in order to put them in a usable condition, the shall first be paid to Tenant for payment of such restoration, repair and accordance with the Construction Standards and (ii) the remainder sh and paid as provided in (i) and (iii) of Section 11.1, considering Landlord and Tenant in the portion of the Premises taken. If a taken and no repair or restoration work is required becaus shall be apportioned and paid as provided in (i) and (iii) respective interests of Landlord and Tenant in the porti 11.4 Temporary Taking. If the whole or temporary use or occupancy, the Term shall much of the Improvements shall be so take the remainder for the uses and purp proportionately abated until such time extent it cannot operate its business the extent Tenant is prevented condemning authority, Tena covenants, agreements, ter taking, Tenant shall be the period of tempor in which case suc titled t an as t th th r rrn xne ward hment in apportioned e interests of the Premises is o, the award therefor 11.1, considering the remises taken. on of the Premises is taken for uced or affected, such that ( so ake it economically unsound to use ntemplated hereby then rent shall be s ' `kfrought back into full possession, or to the e entitled to terminate the Lease. Except to oing pursuant to the terms of the order of the ontinue to perform and observe all of the other ovisions of this Lease. In the event of any temporary receive the entire amount of any award therefor unless r occupancy shall extend beyond the expiration of the Term, shall belong to Landlord. 11.5 Notic jj Ta, 'n Coo s eration. Landlord and Tenant shall immediately notify the other of encement of any eminent domain, condemnation or other similar proceeding h regard to the Premises. Tenant has the right to participate in eminent domc edings. Any termination of this Lease pursuant to this Article 11 shall not afc ights of Landlord and Tenant to any such award. ARTICLE 12 Assignment and Subletting 12.1 Tenant's Right to Assign. (a) Tenant may assign this Lease to any affiliate, subsidiary, or successor of Tenant or any entity acquiring a majority of Tenant's operations upon written consent of Landlord, which shall not be unreasonably delayed or withheld. In the event Tenant assigns this Lease in accordance with this Section, Tenant shall be deemed released from its duties Landlord Initials: Tenant Initials: Page 16 and obligations hereunder in accordance with this Section. Tenant shall have no duty to share any profits or provide any other remuneration or consideration to Landlord as a result of its assigning this Lease, or subleasing all or any portion of the Premises, and it shall be deemed unreasonable for Landlord to require any such sharing, remuneration, or consideration in connection with Landlord's consent to any assignment in accordant with this Section. (b) Tenant may assign its rights hereunder to any other party with Landlor s written approval and after a public hearing before the Board of Comm' on Yof Landlord, which approval shall not be unreasonably withheld or delaye• a lord's right to approve any assignee of Tenant's rights under this Lease shall i -1 )ut not be limited to, the approval of (i) the character, reputation and financi ;1 -ngth of the proposed assignee and (ii) the ability of the assignee's ability to ' e the proposed use. If the public hearing does not take place within thirty (30) da . e submission by the Tenant, then the assignment will be deemed approve on Landlord's written approval of any proposed assignee of Tenant's rights un s ease, Tenant shall be relieved of liability, and such assignee shall become Tenant. Landlord shall indicate its written approval or disapproval of any .ropassignee within (30) days after Tenant gives to Landlord notice of the pro e , ssignment, including the identity of the proposed assignee and reasonably s i- information as to the proposed assignee and proposed use to enable Landl to e luate and determine if Landlord will approve of the assignment. If Landlor i to indicate its approval or disapproval within such thirty (30) day period, shall be deemed to have approved the requested assignment. In the even -n. transfers or assigns only a portion but not all of its interest in this Lease, Ten. ' s emain fully liable to Landlord for all obligations hereunder. Any assignment 9 ` , a s rights under this Lease that are not in accordance with this Section shall be vo 12.2 Tenant's Ri iis ..lease. (a) Tenant may fre that (i)the le any kind ► Landlord c viol. w]�ich ecute subleases with regard to the Improvements, provided only of each such sublease (including all renewal and extension rights of shall not extend past the stated expiration date of the Term, unless Its in writing thereto and (ii) the intended use by the sublessee does not d-ed restrictions affecting the Premises which are binding on the Premises of ant has received written notice from Landlord. s used in this Lease the term "sublease" shall include any leases, licenses, ccupancy agreements, franchise or other similar rights, agreements or arrangements of whatever nature relating to the use or occupancy of any part of the Premises. (c) If Tenant subleases the Premises in entirety, then in this event, fifty percent (50%) of any excess sublease rent beyond the rent set forth herein, shall be paid to Landlord. If Tenant subleases the Premises in its entirety, Tenant shall remain fully liable to Landlord for all obligations hereunder. If Tenant subleases only a portion of the Premises, then in this event, no portion of any rent or other payments from any such sublessee to Tenant shall be due and payable to Landlord. Landlord Initials: Tenant Initials: Page 17 As. ARTICLE 13 Environmental Provisions 13.1 Definitions. For purposes of this Lease the following terms following meanings - (a) "Environmental Law" or "Environmental Laws" shall applicable federal, state, regional, county or municipal statute, or order, code, directive or requirement, relating to the Substances, including without limitation the Resource Cons amended, 42 U.S.C. §6901 et seq.; the Comprehe Compensation and Liability Act, as amended, 42 U.S. Pollution and Control Act, 33 U.S.C. §1251 et seq.• U.S.C. §2601 et seq.; the Clean Air Act, 42 U.S, defined below), now or hereafter existin ordinances, rules, regulations, orders, dj existing. (b) "Hazardous Substance" or material, waste, pollutant, irrit Environmental Law (toget thereunder and all substtion without limitation, p um, polychlorinated bip Ives or sha 1 the 0 and every rule, regulation, en ht or Hazardous and Recovery Act, as vironmental Response, et seq.; the Federal Water To c Substances Control Act, 15 1 et seq.; and the Tank Laws (as er with all successor statutes, requirements now or hereafter ous Substances" shall mean any substance, ontaminant defined, listed, or referred to in any any amendments thereto, regulations promulgated hereof) as being either hazardous or toxic, including petroleum byproducts or derivatives, asbestos, and (c) "Release" ---a! •-positing, spilling, leaking, pumping, pouring, emitting, emptying, dischargin • ' - escaping, leaching, dumping or disposing. (d) " means those reports and assessments more particularly described on Ex attached hereto and incorporated herein by this reference. nk Laws" shall mean all federal, state, regional, county, or municipal Oyrlronmental statutes, ordinances, rules or regulations relating to underground storage anks, including, without limitation, the Federal Underground Storage Law, Subtitle I of 4S, the Resource Conservation and Recovery Act, as amended, 42 U.S.C. § 6901 et seq., together with any amendments thereto, regulations promulgated thereunder and all substitutions thereof, and any successor legislation and regulations. (f) "Remediate" or "Remediation" shall mean the necessary actions to comply with applicable Environmental Law with respect to the unlawful presence of, or suspected discharge of, a Hazardous Substance. Remediation may include, without limitation: Landlord Initials: Tenant Initials: Page 18 environmental investigation, monitoring and sampling; installation, maintenance and removal of monitoring wells; removal, treatment, neutralization or containment of any Hazardous Substance; storage of excavated materials; and installation, maintenance, storage and removal of machinery and equipment used in connection with the Remediation. 13.2 Landlord's Representations, Warranties and Covenants. Landlord repr ents to Tenant, to Landlord's knowledge and without investigation, that the Premises ' fr Hazardous Materials to the extent necessary to be in compliance with any , ep . .le Legal Requirements as in effect and interpreted on the date of this a that Landlord has not received notice that it is not in compliance with any • .le Legal Requirements as in effect and interpreted the date of this Lease. 13.3 Tenant's Re resentations Warranties and Coven represents, warrants, and covenants that: Tenant hereby (a) Tenant agrees not to knowingly release any Hazard•, rial on, onto or from the Premises that could result in a violation of any Environ . a Law or in the creation of liability or obligations, including, without limitatiication, or remediation, under any Environmental Law. Tenant shall obtain ain in force all permits, licenses, registrations, and other authorizations and pro needed under Environmental Laws to maintain, occupy and operate the Prem the uses herein permitted. (b) Tenant agrees that it will not use : i generate, treat, store or dispose of, or permit the use, handling, generation, tre.. orage or disposal of any Hazardous Substances (other than those types an •, . n ies contained in normal office products and environments) in, on, unde o or above the Premises now or at any future time (except in quantities per ted b applicable laws). (c) If Tenant is in b sole expense, sha Premises, to any event, Laws. oany of its agreements set forth in this Section, Tenant, at its all action required, including environmental cleanup of the with the covenants herein or applicable legal requirements and, in e all action deemed necessary under all applicable Environmental (d hstanding any provision in this Lease to the contrary, Tenant shall not be le for, shall have no liability or obligations with respect to, and shall not be ted to pay for or take any action with respect to (i) the existence of any Hazardous 1•stance on the Premises which occurred or existed prior to the date of the Lease unless aused or knowingly permitted by Tenant, its agents, or contractors, (ii) the existence of any Hazardous Substance on the Premises which occurred or existed after the date of the Lease unless caused by Tenant, its agents, employees or contractors (iii) the Release of Hazardous Substances on, onto or from the Premises unless caused, contributed, or participated in by Tenant, its agents, employees or contractors, or (iv) any violation of any Environmental Laws, unless and to the extent that such was caused, contributed or participated in by Tenant, its agents, employees, or contractors. Landlord Initials: Tenant Initials: Page 19 ARTICLE 14 Warranty of Peaceful Possession 14.1 Peaceful Possession. Landlord covenants that Tenant shall and may peaceably and quietly have, hold, occupy, use and enjoy the Premises during the Term and exercise all of its rights hereunder, subject only to the provisions of this Leas applicable governmental laws, rules and regulations. This covenant and covenants of Landlord shall be binding upon Landlord and its successors th respect to breaches occurring during its or their respective periods of n p of Landlord's interest hereunder. ARTICLE 15 Audit 15.1 Independent Audit. Landlord has the right 4 ')/in the services of an independent auditor whenever the Landlord deems it ap riate to do so, but not more than one (1) time per every four (4) months to ; the Gross Sales receipts of the Tenant under standard auditing practices. A s spection must take place at the Premises and must take place Monday to rida n non -State and Federal Holidays) from 9:00 am to 5:00 pm. Upon reason itten notice from Landlord, Tenant shall make available, to the independent a di ained by Landlord, all requested records and documentation limited to tho - n. -d to audit the Tenant's Gross Sales under standard auditing practices, for . = on and copying. Landlord shall choose the independent auditor and Ten e responsible for one-half (1/2) payment of the independent auditor's servi . T terms of this provision herein shall apply to Tenant. Nothing contained in t provi ion shall impair any independent right of Landlord to conduct, audit, or i ti the operations, activities, and performance of Tenant in connection with t 's L se, to the extent such right exists under law or contract. 15.2 Inde Auditor General Review. According to the Charter and the Code of of Miami, there is established an Office of the Independent Auditor General ("'') which may, on a random basis, perform audits, inspections, and reviews of cs of Landlord. This random audit is separate and distinct from any other audit rd. The IAG is authorized to investigate Landlord's affairs and empowered to past, present, and proposed Landlord programs, accounts, records, contracts, and actions. Monitoring of an existing project or program may include a report oncerning whether the project is on time, within budget, and in conformance with the plans, specifications, and applicable laws. The IAG shall have the power to audit, investigate, monitor, oversee, inspect, and review operations, activities, performance, and procurement processes including but not limited to project design, proposal specifications, proposal submittals, activities of Tenant, its officers, agents, and employees, lobbyists, Landlord staff, and elected officials to ensure compliance with contract specifications and to detect fraud and corruption. Upon ten (10) days written notice to Tenant, Tenant shall make all requested records and documents available Landlord Initials: Tenant Initials: Page 20 to the IAG for inspection and copying related to and concerning the improvements contemplated by the MOU and work done under any Design Build Agreement at the Premises. Any such inspection must take place at the Premises and must take place Monday to Friday (on non -State and Federal Holidays) from 9:00 am to 5:00 pm. The IAG shall have the right to inspect and copy all documents and records in Tenant' possession, custody, or control that pertain to the improvements contemplated by MOU and work done under any Design Build Agreement, including, but not limit original estimate files, change order estimate files, worksheets, propo agreements from and with successful subcontractors and suppliers, re'ct- related correspondence, memoranda, instructions, financial docu - lated solely to the improvements contemplated by this MOU and work done . + y Design Build Agreement, construction documents, Lease docu , ack-change documents, all documents and supporting documentation forementioned documents and records. 15.3 Public Records. All records and documentatio to the provisions herein shall be the sole property of 119 of the Florida Statutes. O ARTICLE 14 T Default an dies ed and audited pursuant nd not subject to Chapter 16.1 Tenant's Default. Each o '"1 .wing shall be deemed a "Tenant's Default" by Tenant hereunder and a mate of this Lease: (a) If Tenant fails to pay and taIIment of rent on the date upon which the same is due to be paid and such d u1t co times for ten (10) days after Tenant receives written notice specifying suc (b) If Tenant fails 7 p, perform or observe any of the covenants, agreements, terms or provisions cn this Lease that are to be kept or performed by Tenant other than with resp yment of rent or other liquidated sums of money and Tenant fails to commence take such steps as are necessary to remedy the same within thirty (30) day Tenant receives written notice specifying the same, or having so commenced, tb�e� fails to proceed diligently and with continuity to remedy the same. an involuntary petition is filed against Tenant under any bankruptcy or insolvency w or under the reorganization provisions of any law of like import or if a receiver of Tenant, or of all or substantially all of the property of Tenant, is appointed without acquiescence, and such petition or appointment is not discharged or stayed within sixty (60) days after the happening of such event. (d) If Tenant makes an assignment of its property for the benefit of creditors or files a voluntary petition under any bankruptcy or insolvency law, or seeks relief under any other law for the benefit of debtors. Landlord Initials: Tenant Initials: Page 21 (e) The leasehold hereunder demised shall be taken by execution or other process of law in any action against Tenant. (f) Except for a valid termination of this Lease by Tenant pursuant to any provision hereunder including, without limitation, the provisions of Section 2.2 above, Tenant otherwise notifies Landlord, at any time prior to the Delivery of the Premises, that Ten does not intend to take occupancy of the Premises upon the Delivery of the Premisor Tenant shall fail to promptly move into and take possession of the Premises Premises are ready for occupancy. (g) Tenant shall become insolvent or unable to pay its debts as they�b - due, or Tenant notifies Landlord in writing that it anticipates either condition. 16.2 Landlord's Remedies. If a Tenant's Default occurs, La thereafter prior to the curing thereof and without waiving an available to Landlord at law or in equity (Landlord's rights (1) or both of the following: ay, at any time ights hereunder or ulative), do any one (a) Landlord may terminate this Lease by giving t v7Fitten notice thereof, in which event this Lease and the leasehold estate hereb and all interest of Tenant and all parties claiming by, through or under Tenai t cept for sublessees as provided in Section 12.2) shall automatically terminat the effective date of such notice with the same force and effect and to the same ex . s t if the effective date of such notice were the day originally fixed in Article 2 piration of the Term. Landlord, its agent or representatives, shall have the ri ��i • out further demand or notice, to re-enter and take possession of the Premi . ��� emove all persons and property therefrom with process of law, without b-' , d ed guilty of any manner of trespass and without prejudice to any remedie or a ars of rent or existing breaches hereof. In the event of such termination, Ten .11 be liable to Landlord for damages in an amount equal to (i) the discounted prese .lu- of the amount by which the rent reserved hereunder for the remainder of the st rm exceeds the then net fair market rental value of the Premises for such pen. f t, . e, plus, (ii) all expenses incurred by Landlord enforcing its rights hereunder. e acceleration of such amounts, Tenant agrees to pay the same at once, toge ith all rent and other charges and assessments due, at Landlord's address as pr d h-rein. ord may terminate Tenant's right to possession of the Premises and enjoyment rent, issues and profits therefrom without terminating this Lease or the leasehold s ate created hereby, re-enter and take possession of the Premises and remove all ersons and property therefrom (except for sublessees as provided in Section 12.2) with or without process of law, without being deemed guilty of any manner of trespass and without prejudice to any remedies for arrears of Rent or existing breaches hereof, and lease, manage and operate the Premises and collect the rents, issues and profits therefrom all for the account of Tenant, and credit to the satisfaction of Tenant's obligations hereunder the net rental thus received (after deducting therefrom all reasonable costs and expenses of repossessing, leasing, managing and operating the Premises). Tenant hereby waives notice of such re-entry or repossession. Landlord shall not be responsible for the Landlord Initials: Tenant Initials: Page 22 care or safekeeping of any such property and Tenant waives any claim against Landlord relating thereto. Landlord may relet all or part of the Premises for Tenant's account, for a term or terms which may, at Landlord's option, be equal to, less than, or greater than the period which would otherwise have constituted the balance of the Term, holding Tenant liable in damages for all expenses incurred in any such reletting including, withou limitation, expenditures in connection with renovation, maintenance, repairs or alterati for the new tenant, broker's commissions, legal fees, etc. and for any difference bet the amount of rent received from such reletting and the rent due and payable terms of this Lease. If the net rental so received by Landlord exceeds tis necessary to satisfy all of Tenant's obligations under this Lease, neverth• - dlord shall retain such excess. In no event shall Landlord be liable for f so lease, manage or operate the Premises or collect the rentals due under an ub ses and any such failure shall not reduce Tenant's liability hereunder. If La cts to proceed under this Section, it may at any time thereafter elect to termi r ease as provided in Section 15.2(a). Landlord may exercise all other remedie .va e to Landlord at law or in equity, including, without limitation, injunctive reli'- . specific performance of all varieties. All of Landlord's remedies shall btive and not exclusive. Forbearance by Landlord to enforce one (1) or • e o e remedies herein provided upon an event of default shall not be deemed or ed to constitute a waiver of such default. Without limiting the generality of th e . g, the maintenance of any action or proceeding to recover possession of the mise or any Rent or any other monies that may be due or become due from Tenan dlord shall not preclude Landlord from thereafter instituting and maintaining ; • nt actions or proceedings for the recovery of possession of the Premises or o er rent or monies that may be due or become due from Tenant. Any entry - , into the Premises by Landlord shall not be deemed to absolve or dischar j from liability under this Lease. 16.2.1. Notwithstandin ything contained herein to the contrary, Landlord shall never be entitled to dispo e s ant of the Premises pursuant to any "lock out" or other nonjudicial remed L ord hereby waiving its right to forcibly dispossess Tenant from the Premises, h peaceably or otherwise, without judicial process, such that Landlord shentitled to any "commercial lock -out" or any other provisions of applicabl: ich permit landlords to dispossess tenants from commercial properties withou he ► - efit of judicial review. 1f2; nant hereby expressly waives any and all rights of redemption and rights to om forfeiture granted by or under any present or future laws, if Tenant shall be ed or dispossessed from the Premises for any cause, or Landlord reenters the remises following the occurrence of any Event of Default hereunder, or this Lease is terminated before the expiration date thereof originally fixed herein. For the enforcement of Landlord's remedies, Landlord may have recourse to any applicable legal or equitable process for the recovery of possession of the Premises and the right to seek an injunction or a declaratory judgment as if no other remedies were provided herein for such breach. Except as otherwise specifically required by this Lease, Tenant waives any and all statutory and legal notice requirements. Landlord Initials: Tenant Initials: Page 23 16.3. Landlord's Default. Each of the following shall be deemed a "Landlord's Default" by Landlord hereunder and a material breach of this Lease: (a) If Landlord fails to keep, perform or observe any of the covenants, agreements, terms or provisions contained in this Lease that are to be kept or performed by Landlord and Landlord fails to commence and take such steps as are necessary to remedy the sa within ten (10) days after Landlord is given written notice specifying the same, or hying so commenced, thereafter fails to proceed diligently and with continuity to rei dy� same. (b) If an involuntary petition is filed against Landlord under an insolvency law or under the reorganization provisions of any law of receiver of Landlord, or of all or substantially all of the pro appointed without acquiescence, and such petition or appointor stayed within sixty (60) days after the happening of such event. ptcy or ort or if a Landlord, is t discharged or (c) If Landlord makes an assignment of its property fo fit of creditors or files a voluntary petition under any bankruptcy or insolvenc other debtors. ," or seeks relief under any 16.4 Tenant's Remedies. Landlord shall nodefault hereunder unless Landlord fails to perform any of its obligations unLease within ten (10) days after written notice from Tenant specifying the nature '. failure; provided, however, that if such failure cannot be cured within s c (10) day period but Landlord is using commercially reasonable effort '- the same, then Landlord shall have such additional time to cure such . s reasonably necessary under the circumstances without such failure being a nder this Lease. In the event of a Landlord default hereunder, Tenant may : rcis ny or all other rights or remedies available at law or equity, including, wi .' u imitation, the right to obtain restraining orders, injunctions and decrees of speci i. • rf.rmance. ARTICLE 17 Miscellaneous 17. ' f ices. Any notice provided for or permitted to be given hereunder must be in nd may be given by (i) depositing same in the United States Mail, postage , registered or certified, with return receipt requested, addressed as set forth in this ion, (ii) depositing same with an overnight courier service which confirms delivery in riting, such as FedEx or UPS, or (iii) delivering the same to the party to be notified. Notice given in accordance herewith shall be effective upon receipt at the address of the addressee, as evidenced by the executed postal receipt or other receipt for delivery or one (1) business day after deposit with an acceptable overnight courier service. For purposes of notice the addresses of the parties hereto shall, until changed, be as follows: Landlord Initials: Tenant Initials: Page 24 Landlord: Pieter Bockweg Executive Director OMNI Redevelopment District Community Redevelopment Agency 1401 North Miami Avenue Miami, FL 33136 With a copy to: Barnaby L. Min Deputy City Attorney/Deputy General Counsel City of Miami ,,C),,s*kS) 444 SW 2 Avenue Suite 945 Miami, FL 33130 Tenant: p Y Christopher Cooney ['` O EUE/Screen Gems 603 Greenwich Street NY, NY 10014 and. Han Lau 4S1 EUE/Screen Gems 603 Greenwich Street NY, NY 10014 With a copy to: Aaron Resnic Law Offic 100 No Miam (:)SC)AS'''SLe ron Resnick, P.A. ne Boulevard The parties hereto shall have the right from time to time to change their respective addresses for purposes of notice hereunder to any other location within the United States by giving a notice to such effect in accordance with the provisions of this Section. Landlord Initials: Tenant Initials: Page 25 17.2 Performance of Other Party's Obligations. If either party determines, in its or his reasonable good faith judgment that an emergency, involving imminent danger of injury or death to persons or damage to property in excess of $100,000.00 exists due to the other party's failure to observe or perform its or his covenants, agreements and obligations hereunder, then such party may immediately perform or observe the covenants agreements and obligations which give rise to such emergency at the expense of failing party if it is later determined (whether it be by agreement of the parties adjudication) that the non -acting party actually did not perfoiiu its obligations d such determination by the acting party was reasonable. Any performance or se ce by a party pursuant to this Section shall not constitute a waiver of the other . ailure to perform or observe. If Landlord validly performs any such oblig behalf of Tenant, then Tenant shall pay Landlord's reasonable cost of same w y (30) days of written notification from Landlord to Tenant. If Tenant vali rms any such obligation on behalf of Landlord, then Landlord shall pay T n 's asonable cost of same within thirty (30) days from written notification fr m enant to Landlord, or alternatively, Tenant may offset any such cost incurred b t against Tenant's rental obligations otherwise due hereunder. Notwithstanding to the contrary contained herein, Landlord may enter the Premises and/or - d t mow to potential purchasers provided Landlord provides Tenant with at leas y-two (72) hours written notice. In the event of an emergency, Landlord may t 'remises and/or Land as it deems reasonably necessary. 17.3 Dispute Resolution. (a) Negotiation. In the eve 'dispute or disagreement between Landlord and Tenant arising out of or in an i ated to this Lease, the matter, upon written request of either Landlord or Tena t, ha immediately be referred to representatives of both Landlord and Tenant fo ecisio , each party being represented by one individual who is authorized to settle t : - di to ("Representatives"). The Representatives shall within five (5) business day •romptly meet in a good faith effort to resolve the dispute by negotiation. If the -s are not able to reach agreement after the negotiation, then the dispute shall ) o .idered at a public hearing before the Board of Commissioners of Landlord .. ") at the next available hearing so long as it does not exceed sixty (60) days. If it t heard in sixty (60) days, then the requirement to hold a public hearing befo. Board of Commissioners of Landlord will no longer be a requirement of the f the dispute is considered an emergency or would otherwise require urgent ve relief, the the dispute may be submitted to a court of law for further ideration without the need to proceed to the Board. The parties may also pursue all ememdies available to them in law or in equity. 17.4 Modification and Non -Waiver. No variations, modifications or changes herein or hereof shall be binding upon any party hereto unless set forth in writing executed by both parties hereto. No waiver by either party of any breach or default of any term, condition or provision hereof, including without limitation the acceptance by Landlord of any rent at any time or in any manner other than as herein provided, shall be deemed a waiver of any other or subsequent breaches or defaults of any kind, character or description under Landlord Initials: Tenant Initials: Page 26 any circumstance. No waiver of any breach or default of any term, condition or provision hereof shall be implied from any action of any party, and any such waiver, to be effective, shall be set out in a written instrument signed by the waiving party. The Executive Director of Landlord shall have the authority to make any modifications in writing to this Lease on behalf of Landlord unless otherwise specified herein, so long a,S) agreed to in writing by the Tenant. 17.5 Governing Law. This Lease shall be construed and enforced in accorda e the laws of the State of Florida, without reference to its principles regarding n • of laws. Any dispute with respect to this Lease is subject to the laws of Florid venue in Miami -Dade County. 0 17.6 Number and Gender; Caption; References. Pronouns, whe, of whatever gender, shall include natural persons and corporatio every kind and character, and the singular shall include the as may be appropriate. Article and section headings in tit' reference and shall not affect the construction or inte the terms "hereof," "hereby," "herein" or words of simi they shall be construed as referring to this Lease section or provision, unless the context spe reference to a particular "Article" or "Sec indicated article or section of this Lease. words "include," "includes," and "in u group, and not limited to the item(s 17.7 Estoppel Certificate. deliver to each other, withi other party, a certificate d herein, and associations of erever and as often e . re for convenience of f this Lease. Whenever port are used in this Lease ntfrety rather than to a particular indicates to the contrary. Any 11 be construed as referring to the ver placed before one or more items, the hall mean considered as part of a larger and Tenant, from time to time, shall execute and nable time following written request therefor by the ressas indicated by the requesting party and stating: (a) whether or not thi\ ash is in full force and effect; (b) whether . t of his Lease has been modified or amended in any respect, and submitting copies 1 odifications or amendment; (c) w the certit , . specifying the nature thereof; ether ith; and not there are any existing defaults hereunder known to the party executing or not any particular article, section or provision of this Lease has been (e) such other matters as may be reasonably requested. 17.8 Exhibits. All exhibits and addenda attached hereto are incorporated herein for all purposes. 17.9 Severability. If any provision of this Lease or the application thereof to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, Landlord Initials: Tenant Initials: Page 27 and the basis of the bargain between the parties hereto is not destroyed or rendered ineffective thereby, the remainder of this Lease, or the application of such provisions to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby. 17.10 Attorney Fees. The prevailing party in any action proceeding under or relate this Lease shall recover from the non -prevailing party its reasonable attorneys' fee costs. 17.11 Surrender of Premises; Holding Over. Tenant shall quit and the Premises at the expiration or earlier termination of this Lease. The P - shall be broom clean, in good condition and repair, except for ordinary wear an t mage that is Landlord's responsibility to repair hereunder, damage by emi ' - ain, fire and casualty, and all alterations, additions and improvements. At • ration or earlier termination of this Lease, any holdover shall be from month to i at 110% of the rent for the month preceding the expiration or earlier terminatiQgf thi Lease, and otherwise on the same terms and conditions as herein provided. 17.12 Relation of Parties. It is the intention of L. • d a'nd Tenant to hereby create the relationship of an estate for years, not a usufru a , 1 other relationship whatsoever is hereby created. Nothing in this Lease shal be c trued to make Landlord and Tenant partners or joint venturers or to render eiQ y hereto liable for any obligation of the other. 17.13 Force Majeure. As used orce Majeure" shall mean the occurrence of any event including, but not li R - : R, such any delays due to strikes, riots, acts of God, shortages of labor or materi., wa governmental laws, regulations or restrictions, or any other cause whatsoever ► one e control of Landlord or Tenant (other than failure to obtain financing for, '1 - to refinance or cessation of disbursements under existing financing for, the pur. ' . e, construction, demolition, repair or ownership of the Premises or Improvements) prevents or delays the performance by Landlord or Tenant of any obligatio a po - ' upon it hereunder (other than payment of rent). If Tenant shall be delayed, h' or prevented from performance of any of its obligations (other than to pay rent) ason of Force Majeure (and Tenant shall not otherwise be in default here • - th- time for performance of such obligation shall be extended for the period of syj'1�', provided that the following requirements are complied with by Tenant: (i) shall give prompt written notice of such occurrence to Landlord and (ii) Tenant qua diligently attempt to remove, resolve or otherwise eliminate such event, keep andlord advised with respect thereto, and commence performance of its obligations ereunder immediately upon such removal, resolution or elimination. Anything contained in or inferable from this Lease to the contrary notwithstanding, Tenant shall not be relieved by any event of Force Majeure from Tenant's obligations to pay rent hereunder, nor shall the Term be extended thereby. 17.14 Entire Agreement. This Lease constitutes the entire agreement of the parties hereto with respect to its subject matter, and all prior agreements with respect thereto are Landlord Initials: Tenant Initials: Page 28 merged herein. Any other written agreements entered into between Landlord and Tenant of even date herewith are not, however, merged herein. 17.15 Recordation. Landlord and Tenant will, at the request of the other, promptly execute a Memorandum of Lease substantially in the form of Exhibit " " attached hereto which shall be filed for record in the public records of Miami -Dade County, Florida. 17.16 Successors and Assigns. This Lease shall constitute a real right and running with the Premises, and, subject to the provisions hereof pertaining rights to assign, sublet or encumber, this Lease shall be binding upon an ui�,t6 the benefit of the parties hereto and their respective successors and assig s enever a reference is made herein to either party, such reference shall i lu& e party's successors and assigns. 17.17 Landlord's Joinder. To the extent permitted by law, agrees to support and cooperate with Tenant in obtaining such permits and li n es .m any Governmental Authority as may be reasonably necessary or approprfectuate the intents and purposes of this Lease, provided that no such applicati. .r said permits and licenses shall constitute an encumbrance of or with respect r. P emises, and Landlord shall not incur or become liable for any obligation as a r 1i t of. 17.18 No Third Parties Benefited. Thet sole benefit of Landlord and Tenant, and and provisions of this Lease are for the party is intended to benefit herefrom. 17.19 Survival. Any terms and s of this Lease pertaining to rights, duties or liabilities, the performance of , qis their express terms extend beyond the expiration or termination of this Lease, 11 ive the end of the Term. 17.20 Landlord's Li contractual landlord' in the Premises. Landlord hereby waives and releases any statutory or th respect to the property of Tenant now or hereafter located 17.21 Tra _ fie. andlord's Interest. Intentionally deleted. 17.22 and and Tenant Defined. The word "Landlord", as used in this Lease, shall inc original Landlord named in this Lease and all persons, natural or artificial, .: t y time or from time to time during the Term of this Lease succeed to the estate dlord in the Land and the interest of Landlord under this Lease. The word 0as• ant", used in this Lease, Tenant namin Lease Sy nd all persons, natural or artificialshall, whoincluatde anythe timeoriginal or from time to tiedme dthisuring the Term of this Lease succeed to the estate of Tenant in the Premises and the interest of Tenant under this Lease. AS'''SLe 17.23 Commissions. Landlord and Tenant represent that they have not used a broker in connection with this Lease. Landlord Initials: Tenant Initials: Page 29 17.24 Authority. Landlord and Tenant hereby represent to the other that: (i) Landlord is a duly authorized and existing municipal corporation in the State of Florida and Tenant is a Florida limited liability company, and each is qualified to do business in the State of Florida, (ii) each has full right and authority to enter into this Lease, (iii) each person signing on behalf of the Landlord and Tenant are authorized to do so, and (iv) th execution and delivery of this Lease by Landlord and Tenant will not result in any bre of, or constitute a default under any mortgage, deed to secure debt, deed of trust, loan, credit agreement, partnership agreement or other contract or instrument either Landlord or Tenant is a party or by which either such party may be bou 17.25 Time of Essence. Time is of the essence of this Lease and e provisions in which payment of money or performance of an obligatio 17.26 Non -Disturbance. Landlord represents and warrants to Te of this Lease, the Premises is not subject to any security instrument which would allow any third party to foreclos this Lease. Any and all future lenders, if any, agr defaulted under this Lease past the expiration of ap.lica not be disturbed in Tenant's right to quiet enjoyme 17.27 Tenant's Signage. Tenant shall h repair and replace its signage on the P municipal and all other governmental co the name of the Premises during t Screen Gem Studios, or any oth not use any other name when private. 17.28 Holidays. If a on a legal holiday, su. • at- for performance shall instead be the next following business day. ve th all of its uired. at as of the date or similar pledge e Premises and cancel rovided Tenant has not otice and cure, Tenant shall n, possession of the Premises. ight to construct, install, maintain, , to the maximum extent permitted by Notwithstanding any other term herein, the Lease, and as extended, shall be EUE at the Tenant so chooses. The Landlord will to the Premises to third parties, whether public or or performance by either party falls on a Saturday, Sunday or 17.29 Ri_Refusal. If at any time Landlord determines if it desires to sell the Premises, "1 1 so notify Tenant, and Tenant shall have thirty (30) days in which to sub , o er (the "Offer") to Landlord. Landlord agrees that is will not sell the Pr p i • a third party for the same or less than the amount of said Offer, so long as the ered are reasonably comparable. Further, if Landlord receives an offer from a party for the Premises which it is willing to accept, (a) Landlord agrees to give ice of each proposed sale, including the purchase price and all other terms and conditions, to Tenant; (b) Tenant will have the right to purchase the Premises at the purchase price and on the other terms and conditions offered to Landlord by the third party, by giving notice to Landlord within thirty (30) days after Landlord has notified Tenant of the terms of Landlord's proposed sale; and (c) if Tenant does not give notice of the exercise of its option within such time, Landlord will have the right to sell the Premises upon the terms stated in the offer made or received by Landlord, but not upon terms more favorable to the purchaser, except that in the event of materially changed conditions with respect to the Premises during the term of any such sales contract with Landlord Initials: Tenant Initials: Page 30 such purchaser, Landlord may decrease the purchase price by up to, but not in excess of ten percent (10%) of the amount of the purchase price without again notifying Tenant, but in all other events, Landlord may not sell the Land to such third party upon terms more favorable to the purchaser unless Landlord again gives written notice pursuant to this Section, and Tenant does not exercise its option based upon the new terms. 17.30. Parking. Landlord shall use its best efforts to provide or secure for T parking that Tenant will have access to use, including, but not limited to any,�C State owned properties 17.31. Naming Rights. EUE Screen Gems Studios shall be the offie of the Premises and any right to change such name shall remain solely with t lia THE BALANCE OF THIS PAGE I TIONALLY LEFT BLANK] S'S-4C;CL"P' sty AS) OG'�� Landlord Initials: Tenant Initials: Page 31 EXECUTED as of the dates set forth below. Attest: Todd B. Hannon City Clerk LANDLORD: OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY By: Name: Title: [IF CORPORATION, CORPORATE SEAL OR SEPARATELY APPROVED AS TO FORM AND CORRECTNESS: Victoria Mendez General Counsel Landlord Initials: Tenant Initials: Page 32 TENANT: EUE/SCREEN GEMS LTD, INC. Signed and delivered this day By: (SEAL) 2014, in the presence of: Unofficial Witness Notary Public My commission expires: (NOTARY SEAL) Witness No. 1 Signature: Print Name: Witness No. 2 Signature: Print Name: Name: Title: Landlord Initials: Tenant Initials: Page 33 EXHIBIT LIST Landlord Initials: Tenant Initials: Page 34 EXHIBIT A Legal Description of Land and Premises PROPERTY DESCRIPTION Landlord Initials: Tenant Initials: Page 35 Landlord Initials: Tenant Initials: Page 36 MEMORANDUM OF UNDERSTANDING BETWEEN EUE/SCREEN GEMS LTD, INC., A FLORIDA CORPORATION AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY This Memorandum of Understanding ("MOU") is made and entered into this day of , 2014 by and between EUE/SCREEN GEMS LTD, INC., a Florida limited liability company ("Tenant") and the OMNI REDEVELOPMNET DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("Landlord"). RECITALS1'<,)4S) WHEREAS, the Landlord owns certain property located in tht' f Miami, Miami -Dade County, Florida ("City"), shown on Exhibit "A" c' ed hereto ("Premises") and by this reference incorporated herein; and WHEREAS, the Landlord has entered into a co m al lease agreement ("Lease") with the Tenant for the Premises, Exhibit "B>at ed hereto and by this reference incorporated herein; and WHEREAS, pursuant to the Lease, the Mord has agreed to provide the Tenant with funds to pay for certain improvgrries to the Premises ("Project"); and WHEREAS, this Memorandu d nderstanding ("MOU") sets for the Landlord's obligation to provide sa• s and the Tenant's obligations as to how eiS, those funds should be expended; WHEREAS, the Land contract for the Project so MOU; and •.(Silas provided the Tenant with the unfettered right to as the Tenant conforms to funding limitations of the WHEREA aid of Commissioners of the Landlord ("Board"), pursuant to Resolution No. ' j has authorized the Executive Director of the Landlord to execute this MOU with the Tenant; and aikoi THEREFORE, in consideration of the premises and mutual covenants an ' ises contained herein, the County and the City agree as follows: ARTICLE I PURPOSE The purpose of this MOU is to ensure for the funding and build out of the Premises as well as to set forth the right of the Tenant to contract for the improvements to the Premises and the mechanism for payments to be made for The recitals are incorporated herein as terms of this MOU. Landlord Initials: Tenant Initials: Page 1 those improvements. The parties recognize the need for a film, media, and entertainment facility in the State of Florida and more particularly in the City of Miami. The parties agree as demonstrated by the award of a Request for Proposal pursuant to Resolution 13-01355 that Tenant is qualified with the assistance of contractors and subcontractors to design, build, and construct a film, media, and entertainment facility. The parties agree that pursuant to the terms of this MOU as well as the Lease, the Landlord will assist with some financing of the design, build out, and construction of the facility. ARTICLE II TERM OF THE MOU 2.1 The term of this MOU shall commence on the last date o� tion by the parties and continue until construction is concluded at remises unless terminated by either party pursuant to Article VI belo 2.2 The parties agree that time is of the essence in Iie'rformance of each and every obligation under this MOU. AS) ARTICLE III� RESPONSIBILITIES ;TNE PARTIES 3.1 Landlord's Responsibilities. Th• ►.: ord hereby agrees as follows: (a) To have available to tK ant US$11,500,000.00 for design, build out, and construction of rd're Prmises. (b) To authorize thant to have full discretion as to the design, build out, and constru \of the Premises so long as the cost of such design, build out, and uction does not exceed US$11,500,000.00. Additionally, any li.�s�' at d damages clause negotiated in any agreement with any con or subcontractor shall inure to the sole benefit of the Tenant. e, any obligation pursuant to any agreement with any contractor uibcontractor shall be the sole responsibility of the Tenant. To pay for any design, build out, or construction related invoices, Fee applications, and Applications for Payment (as well as any termination fees/penalty fee), that are provided to the Landlord within thirty (30) days of receipt. All payment shall be made to the Tenant. Because time is of the essence as detailed in this MOU, the Landlord agrees to accept any applicable invoice via electronic mail sent to the Executive Director and Finance Director of the Landlord. Upon receipt of an invoice, Fee application, or Application for Payment, the Landlord shall have three (3) business days to advise the Tenant in writing, if it has any issue with invoice, Fee application, or Application for Payment. If no written notice Landlord Initials: Tenant Initials: Page 2 is provided, then the Landlord on the next business day must send the invoice, Fee application, and Application for Payment to the City to process the payment. If the Landlord provides written notice of an issue with an invoice, Fee application, or Application for Payment, then within two (2) business days the Landlord must meet with the Tenant in good faith to resolve the issue with the invoice, Fee application, or Application for Payment. If the issue is resolved, the Landlord then must send the invoice, Fee application, or Application for Payment to the City for (d) To approve any reasonable change order, change of scope fSiork,or similar reasonable modification to the design, build out, a &c n truction of the Premises so long as said change or increase is w' i tWe budget of the Landlord as approved by the Board. Any increase above the designated US$11,500,0hat is otherwise not already authorized in the budget of the Lan . . . • as approved by the Board shall require any additional public Ilea ' sg and approval by the Board prior to reimbursement or authorizativn to pay as delineated in this MOU. payment on the next business day. (e) To designate a representative fro fh' City of Miami ("City") to assist as a Landlord's representative and nt of contact who will have primary (though not exclusive) du ve as the parties' liaison in order to facilitate expediting the p ng and issuance of all permit and license applications, approva inspections across all of the various departments and offices ithin the City which have the authority or right to review and a o all applications for such permits, licenses, and inspections (t "Landlord Representative"). The Landlord Representat'll be on site during all business hours throughout the construct ocess. When the Tenant receives an invoice, Fee applic.�y. , r Application for Payment, it shall be immediately sent to the . ;' .. rd Representative via electronic mail. Within two (2) business e Landlord Representative will meet with the Tenant to review invoice, Fee application, or Application for Payment, to discuss same OOnd to review the work performed under the contract for the improvements. The Landlord Representative shall have two (2) AS7.-- business days from the date of that meeting to advise the Tenant in writing if he/she has any issue with the invoice, Fee application, or Application for Payment. If no written notice is provided, the Landlord Representative must sign off on the invoice, Fee application, or Application for Payment. If the Landlord Representative and Tenant are unable to resolve an issue with the invoice, Fee application, or Application for Payment, then the issue must be presented to the Architect hired by the Tenant to resolve the dispute within the next three Landlord Initials: Tenant Initials: Page 3 [3] business days. The decision of the Architect will be binding on the Landlord Representative and the Tenant. (f) To authorize the Tenant to and provide the Tenant with the unfettered right to contract for the improvements so long as it is within the approved budget set forth herein. (g) The Landlord Representative shall at all times cooperate with the Tenant and shall not interfere with the construction work for the Proj�, % d improvements contemplated herein. 3.2 Tenant's Responsibilities. The Tenant hereby agrees as follow (a) To design, build, and construct the premises, assistance of any contractors or subcontractors " ". The Tenant will ensure that the design, b comply with all federal, state, and local rules re laws, ordinances, and requirements. (b) To comply with any other agreem contractor or subcontractor dire or construction of the Premises. r without the tailed in Exhibit t, and construction ations, orders, statutes, e Tenant may have with any it relates to the design, build out, (c) To timely submit invoic any services reasonably related to the design, build out, or c sction of the Premises for reimbursement to the Landlord. (d) To not submit voice to the Landlord for any services that is not reasonably t d to the design, build out, or construction of the Premises. (e) To 44 est efforts to not submit any change orders, change in scope of equest for additional funding, or other similar change to the osed design, build out, and construction of the Premises. To ensure that the Premises are secured during the design, build out, and construction phase. (g) To properly maintain the Premises during and after the design, build out, and construction of the Premises. (h) To be responsible either along with or without any contractors or subcontractors for obtaining all permits, approvals, and inspections and to be solely responsible for all associated fees and costs. Landlord Initials: Tenant Initials: Page 4 ARTICLE IV NOTICES 4.1 All notices, demands, or other communications to the Landlord under this MOU shall be in writing and shall be deemed received if sent by certified mail to unless otherwise set forth herein: Pieter Bockweg Executive Director OMNI Redevelopment District CRA 1401 North Miami Avenue Miami, FL 33136 with a copy to: Barnaby L. Min, Esq. Deputy City Attorney/Deputy G City of Miami 444 SW 2 Avenue Suite 945 Miami, FL 331304S° +S) 4 aI Counsel All notices, demands, or othe unications to the Tenant under this MOU shall be in writing and sha emed received if sent by certified mail to unless otherwise set for,in: Christ Ayer Cooney reen Gems reenwich Street �N�w York City, NY 10014 Oand Han Lau EUE/Screen Gems AS -A‘ 603 Greenwich Street New York City, NY 10014 with a copy to: Aaron Resnick, Esq. Law Offices of Aaron Resnick, P.A. 100 North Biscayne Boulevard Miami, FL 33132 Landlord Initials: Tenant Initials: Page 5 The Landlord and Tenant shall also provide a copy of all notices to the City's point of contact and described herein. All notices required by this MOU shall be considered delivered upon receipt. Should any party change its address, written notice of such new address shall promptly be sent to the other parties. 5.1 ARTICLE V INSURANCE AND INDEMNIFICATION The Landlord shall be entitled to self -insure for workers' co commercial general liability, auto liability, or any other c Landlord shall obtain and keep in force all risk property i loss or damage to all real and personal property exce which the Tenant is obligated to insure under Section cation e except ce covering that property 5.2 The Tenant shall maintain during this MOU insurequirements pursuant to Exhibit " ". 5.3 Landlord and Tenant agree that all maintained in force by the respectiv by law or other regulation havin which the rights of subrogation pal ie of insurance to be kept and 'es hereto, shall, unless prohibited effect of law, contain provisions in t the Landlord and Tenant are waived by the insurance company or rs insuring the Premises, any building, or other property in questioq<. r s lord expressly waives any right of recovery against Tenant for dan�ge 10 or loss of the building, the Premises, or the improvements there peril covered by an to this Lease w rights agains rich loss or damage may arise by fire or any other cy of insurance required to be maintained pursuant ntains or is required to contain waiver of subrogation nt pursuant to this Section, and Landlord shall make no claim for ve`Fy against Tenant therefor, unless caused by the negligent act of the T or its employees, agents, representatives and/or shareholders or . - s, negligence. Tenant expressly waives any right of recovery a andlord for damage to or loss of its fixtures, improvements, or other erty located in the Premises, which damage or loss may arise by fire or other peril covered by any policy of insurance maintained or required to e maintained pursuant to this Lease which contains or is required to contain a waiver of subrogation right against Landlord as set forth in this Section, and Tenant shall make no claim for recovery against Landlord therefor, unless caused by the negligent act of the Landlord or its officials, employees, agents, representatives and/or shareholders or members, negligence. . 5.4 (a) The Tenant shall indemnify, protect, defend and hold harmless the Landlord and its employees, from and against any and all claims, suits, actions, damages or causes of action of whatever nature arising out of the use Landlord Initials: Tenant Initials: Page 6 or operation of the Premises or the surrounding areas, whether such claim shall be made by the Tenant, or an employee, agent, contractor, invitee or guest of the Tenant, an employee, agent or official of the Landlord or by any third party, and whether it relates to injury to persons (including death) or damage to property except where it is alleged that the Landlordor its employees or officials were negligent or that they acted intentionally. The Tenant shall, at its own cost and expense, pay and satisfy all costs related to any orders, judgments, or decrees which may be entered thereon, and all reasonable costs, attorneys' fees, expenses and liabilities incurred in and about the defense of any such claims and the investigation they the Tenant shall also indemnify, defend, protect and hold the Landl rless from and against any and all claims arising from any breac efault in performance of any obligation of the Tenant's part to be pe under the terms of this Agreement, or arising from any act, neglec 1 or omission of the Tenant, its employees, agents, contractors, invite guests, and from and against all reasonable costs, attorneys' fees nses, and liability incurred in connection with any such claim a y action or proceeding brought thereon. The Tenant reserves tt to retain counsel of its choice. (b) The Tenant shall immediatel no y the Landlord, in writing, of any claim or action filed, of whatever n. arising out of the use or operation of the Premises by the Tenant, its `•yees, agents, contractors, invitees and guests. The Tenant shall als i, -diately notify the Landlord if the Tenant knows or has reason to b a claim or action will be filed, of whatever nature, arising out oft use or operation of the Premises by the Tenant, its members, agents, co a rrs, employees, or servants. (c) Landlors . 1 indemnify, protect, defend and hold harmless the Tenant, its •rs, directors, members, owners, shareholders and employee and against any and all claims, suits, actions, damages or causes ion of arising out or related to the negligent or intentional acts Landlord, its officials, agents, representative or employees, , r such claim shall be made by the Landlord, or any official, employee, t, contractor, invitee or guest of the Landlord, or by Tenant, its icers, directors, members, owners, shareholders and employees, or y any third party, and whether it relates to injury to persons (including death) or damage to property (d) The Landlord shall, at its own cost and expense, pay and satisfy all reasonable costs related to any orders, judgments or decrees which may be entered thereon, and all reasonable costs, attorneys' fees, expenses and liabilities incurred in and about the defense of any such claims and the investigation thereof. The Landlord shall also indemnify, defend, protect and hold the Tenant, its officers, directors, members, owners, shareholders and Landlord Initials: Tenant Initials: Page 7 employees harmless from and against any and all claims arising from any breach or default in performance of any obligation of the Landlord's part to be performed under the terms of this Agreement, or arising from any act, neglect, fault or omission of the Landlord or its employees, agents, from and against all reasonable costs, attorneys' fees, expenses and liability incurred in connection with any such claim or any action or proceeding brought thereon. (e) The Landlord reserves the right to defend itself. Tenant reser right to retain counsel of its choice. (f) The Landlord shall immediately notify the Tenant, in claim or action filed, of whatever nature, arising out of t Landlord shall also immediately notify the Tenant if it to believe a claim or action will be filed, of whatever 1*y Property. Y (g) The Parties acknowledge and accept under this section may be limited and will by Section 768.28, Florida Statutes incident to injury to persons or prope ty negligent work or negligent act or Landlord under this agreement arise out of, or result fro servants, agents, employee^ equity, or violation (s) of any erty. The or has reason , arising from the tl Landlord's responsibility ited to the extent applicable fQ�r"operty loss, property damage, rising out of, or resulting from the sion relative to work performed by however, such claim, or demand shall egligence, or misconduct of Tenant, its ssigns, or to claims in the nature of contract, n applicable law. ARTICLE VI TERMINATION/REMEDIES 6.1 If any ails to fulfill its obligations under this MOU in a timely and pro . nner, the other party shall have the right to terminate its ation under this MOU by giving written notice of any breach and/or It hereunder. The party in default shall then have thirty (30) calendar LF s from receipt of written notice to correct the deficiency. If the defaulting party fails to correct the deficiency within this time, this MOU shall terminate at the expiration of the thirty (30) day time period if the non -breaching party so elects. Nothing herein, shall prevent either party from pursuing claims against the other party in law or in equity. Furthermore, the Tenant shall have the right to sue the Landlord for specific performance should it refuse to pay for an invoice, Fee application, or Application for Payment (as well as any termination fee/penalty fee). Landlord Initials: Tenant Initials: Page 8 6.1.1 In the event of a termination pursuant to this provision, any remaining funds of the Landlord that have not been paid to the Tenant shall remain in the possession of the Landlord and shall not be due and owing to the Tenant, but for its obligation to pay for any design, build out, or construction related invoices, Fee applications, and Applications for Payment as well as any termination fees/penalty fees as set forth and required herein 6.1.2 In the event of a termination pursuant to this provision, any improvements made to the Premises by the Tenant pursuant to th. U shall be subject to the provisions of the Lease. 6.3 This MOU has no third -party beneficiaries (intended or incid Who may enforce obligations of any party should the MOU be termin ARTICLE VII RECORDS RETENTION/OWNE The Landlord and the Tenant shall main,t4cords and each party shall have inspection and audit rights as follows: 7.1. Maintenance of Records: All par 'l hall maintain all financial and non- financial records and reports di R or indirectly related to the negotiation or performance of this MO , d ding supporting documentation for any service rates, expenses, �ch, or reports. Such records shall be maintained and made ila le for inspection for a period of five (5) years from the expiration oination date of this MOU. 7.2. Examination of '+a . e s: All parties or their designated agents shall have the right to e in accordance with generally accepted governmental auditing s a ds all records directly or indirectly related to this MOU. Such examinmay be only within five (5) years from the expiration or terof this MOU and upon reasonable notice, time, and place. 7.3 a '• ection of MOU Related Files and Documents. Landlord has the right to ' pect files and documents maintained by the Tenant related solely to the improvements contemplated by this MOU and work done under any Design Build Agreement. Upon reasonable written notice from Landlord, Tenant shall make available, to the Landlord, at the Premises all requested records and documentation pertaining to improvements contemplated by this MOU and work done under any Design Build Agreement for inspection and copying. 7.4 Independent Auditor General: According to the Charter and the Code of the City of Miami, there is established an Office of the Independent Auditor Landlord Initials: Tenant Initials: Page 9 General ("IAG") which may, on a random basis, perform audits, inspections, and reviews of contracts of Landlord. This random audit is separate and distinct from any other audit by Landlord. The IAG is authorized to investigate Landlord's affairs and empowered to review past, present, and proposed Landlord programs, accounts, records, contracts, and transactions. Monitoring of an existing project or program may include a report concerning whether the project is on time, within budget, and in conformance with plans, specifications, and applicable laws. The IAG shall have the power to audit, investigate, monitor, oversee, inspect, and w operations, activities, performance, and procurement processes inc .'. s ut not limited to project design, proposal specifications, proposa u. • ittals, activities of Tenant, its officers, agents and employees, lobb t andlord staff, and elected officials to ensure compliance with contiecifications and to detect fraud and corruption. r. Upon ten (10) days written notice to Tenant, Tenan Pfg]il make all requested records and documents available to the IAG spection and copying related to and concerning the improvements plated by this MOU and work done under any Design Build Agree •n' •t% the Premises. The IAG shall have the right to inspect and copy all ii ents and records in Tenant's possession, custody, or control ha pertain to the improvements contemplated by this MOU and ha done under any Design Build Agreement, including, but not li `i o original estimate files, change order estimate files, worksheets, , i sals, and agreements from and with successful subcontractors�ippliers, all project -related correspondence, memoranda, instructs is, `financial documents related solely to the improvements conte l ed by this MOU and work done under any Design Build Agreement, uction documents, Lease documents, back -change documents, al . , uments and supporting documentation for the aforementionl o cuments and records. The ps of this section are neither intended nor shall they be con _ 1 o impose any liability on Landlord by Tenant or third parties. 7.5. `!'-ns ed Availability of Records for Legal Disputes: In the event that any ty should become involved in a legal dispute with a third party arising rom performance under this MOU, the other parties shall extend the period of maintenance for all records relating to this MOU until the final disposition of the legal dispute, and all such records shall be made readily available. ARTICLE VIII STANDARDS OF COMPLIANCE 8.1 The Landlord and the Tenant, their employees, subcontractors, partners, or assigns, shall comply with all applicable federal, state, and local laws and Landlord Initials: Tenant Initials: Page 10 regulations relating to the performance of this MOU to which their activities are subject. 8.2 The Landlord shall allow public access to all project documents and materials it maintains in its possession in accordance with the provisions of Chapter 119, Florida Statutes. Should the Landlord assert any exemptions to the requirements of Chapter 119 and related statutes, the burden of establishing such exemption, by way of injunctive or other relief as provided by law, shall be upon the Landlord. Assistance with asserting any exemption �e requested of or voluntarily provided by the Tenant. 8.3 All parties assure that no person shall be excluded on the :ids of race, color, creed, religion, national original, ancestry, dis}, age, sex, pregnancy, marital status, familial status, sexual orient 'veteran status, or source of income from participation in, denied benefits of, or be otherwise subjected to discrimination in any acti der this MOU. All parties shall take all measures necessary to effec a t ese assurances. ARTICLE I RELATIONSHIP BETW 1 HE PARTIES 9.1 The Landlord and the Tenant . ependent contractors. No party is an employee or agent of any party. Nothing in this MOU shall be interpreted to establish ationship other than that of independent contractors, between 4e Landlord and the Tenant, or between their respective employee g'nts, subcontractors, partners, or assigns, during or after the performarr f this MOU. 9'C 10.1 Not wi t1 nding any provisions of this MOU to the contrary, the parties shall np�l�e eld liable for any failure or delay in the performance of this MOU that s from fires, floods, strikes, embargoes, acts of the public enemy, \i.dusually severe weather, outbreak of war, restraint of Government, riots, 'civil commotion, force majeure, acts of God, or for any other cause of same character which is unavoidable through the exercise of due care and beyond the control of the parties. Failure to perform shall be excused during the continuance of such circumstances, but this MOU shall otherwise remain in effect. ARTICLE X GENERAL PROVISIONS 10.2 In the event any provisions of this MOU shall conflict, or appear to conflict, the MOU, including all exhibits, attachments, and all other documents Landlord Initials: Tenant Initials: Page 11 specifically incorporated by reference, shall be interpreted as a whole to resolve any inconsistency. 10.3 Failures or waivers to insist on strict performance of any covenant, condition, or provision of this MOU by the parties, their successors, and assigns shall not be deemed a waiver of any rights or remedies, nor shall it relieve the other party from performing any subsequent obligations strictly in accordance with the terms of this MOU. No waiver shall be effective unless in writing and signed by the party against whom enforcement is sough h waiver shall be limited to provisions of this MOU specifically rto therein and shall not be deemed a waiver of any other provision • aiver shall constitute a continuing waiver unless the writing states oe'Ise. 10.4 Should any term or provision of this MOU be held, to . 'tent invalid or unenforceable, as against any person, entity, or circu • ►e during the term hereof, by force of any statute, law, or ruling of . '•rum of competent jurisdiction, such invalidity shall not affect any o e -rm or provision of this MOU, to the extent that the MOU shall rema'lt7 able, enforceable, and in full force and effect to the extent permitted. 10.5 This MOU may be amended only w' li £fie written approval of the parties hereto. The Executive Director of Landlord shall have the authority to make any modifications in writi • • : • ehalf of the Landlord unless otherwise specified herein with such ations requiring the written approval of the Tenant. 10.6 This MOU shall be co, riled and enforced in accordance with the laws of the State of Florida, t reference to its principles regarding conflicts of laws. Any disp .! .,'th respect to this MOU is subject to the laws of Florida with venue mi-Dade County. The prevailing party in any action proceedin • er or related to this MOU shall recover from the non - prevail' ' Nfty its reasonable attorney's fees and costs.. rns 10.7 T • - • a fies expressly agree that this MOU was jointlydrafted, and that both P Y g �� the opportunity to negotiate its terms and obtain the assistance of `a%� nsel in reviewing its terms prior to execution. Therefore, this MOU shall AS- \The construed neither against nor in favor of either party, but shall be construed in a neutral manner. 10.8 This MOU states the entire understanding and agreement between the parties and supersedes any and all written or oral representations, statements, negotiations, or agreements previously existing between the parties with respect to the subject matter of this MOU, but for those written representations and obligations set forth in the Lease attached hereto and incorporated herein as Exhibit "B". The parties recognize that any Landlord Initials: Tenant Initials: Page 12 representations, statements, or negotiations made by the staff of either party does not suffice to legally bind either party in a contractual relationship unless they have been reduced to writing and signed by their authorized representative(s). This MOU shall inure to the benefit of and shall be binding upon the parties, their respective assigns, and successors in interest. SIGNATURES APPEAR ON NEXT PAGE] &6(S-'\' cp:SAS)'S7 ,.\\,,,) Landlord Initials: Tenant Initials: Page 13 IN WITNESS WHEREOF, the parties or their duly authorized representatives hereby execute this MOU on the date first written above. LANDLORD: OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY By: Pieter Bockweg Executive Director Approved for legal form and sufficiency: By: Victoria Mendez General Counsel Signed and delivered this day 2014, in the present of: Witness Name: Notary Public My commission expi� (NOTA Witness Sigi., th, 'Q Na ie: Witnessed: Signature: Name: TE By: (S +S)° EUE/SCREEN GEMS (SEAL) Date: Landlord Initials: Tenant Initials: Page 14