616-2015 RDA-1A RESOLUTION NO. 616-2015
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), ACCEPTING THE
RECOMMENDATIONS OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE; WAIVING THE COMPETITIVE BIDDING REQUIREMENT,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE RDA;AND
APPROVING AND AUTHORIZING THE CHAIRPERSON AND SECRETARY TO
EXECUTE A LEASE AGREEMENT WITH ARTCONNECTION
INTERNATIONAL, INC. (TENANT), IN CONNECTION WITH THE USE OF
SUITE NO. 6 AT THE ANCHOR SHOPS, LOCATED AT 100 16TH STREET, •
SUITE NO. 6, MIAMI BEACH, FLORIDA (PREMISES); SAID LEASE HAVING
AN INITIAL TERM OF FIVE (5) YEARS, COMMENCING ON NOVEMBER 12,
2015,WITH TWO RENEWAL OPTIONS (AT TENANT'S OPTION), OF THREE
(3) YEARS AND ONE (1) YEAR AND 364 DAYS, RESPECTIVELY.
WHEREAS, the Miami Beach Redevelopment Agency(RDA), successor-in-interest to MB
Redevelopment, Inc., currently has a lease with Art Connection International, Inc. (Tenant), for the
use of space located at 100 16th Street, Suite No. 6, Miami Beach, Florida 33139, having
approximately 721 square feet of retail space(the Premises), which lease will expire on November
11, 2015; and
WHEREAS, Tenant presented staff with a letter of intent(Tenant's Offer) in connection with
the execution of a new lease with the RDA for the Premises, based upon the following material
terms and conditions: 1. a lease term of 9 years and 364 days,commencing on November 12,2015
and ending on November 11, 2025; 2. the Minimum Rent, commencing at the initial rate of$65.00
per square foot for the first year, with annual escalations by the greater of 3% or CPI; 3. operating
expenses (Operating Expenses), including common area maintenance (CAM), adjustable every
year, commencing year 2; and 4. a guaranty of the lease by Tenant; and
WHEREAS, on February 2, 2015, Staff presented Tenant's Offer to the Finance and
Citywide Projects Committee (FCWPC) and recommended acceptance of Tenant's Offer and
directed Staff to finalize a new retail lease, for approval by the RDA Board; and
WHEREAS, on March 11, 2015, RDA adopted Resolution No. 612-2015 accepting the
recommendation of FCWPC, and approving a new retail lease with Tenant with additional conditions
of annual rent increases by the greater of CPI or 3%, a rent increase to market rates after 5 years,
and a nominal buyout provision; and
WHEREAS, Subsequent to the March 11, 2015 meeting, Tenant and Staff continued to
negotiate terms and conditions, as Staff had recalculated the estimated Operating Expenses for the
Premises at $8.81 per square foot (PSF) and Tenant had requested the waiver of the personal
guaranty requirement, in light of Tenant's good standing with the City during the previous fifteen
years; and
WHEREAS, Staff and Art Connection negotiated revised terms,which included: 1. a lease
term commencing on November 12, 2015 through November 11, 2020;with two renewal options,at
Tenant's option, for three (3) years and One (1) year and 364 days, respectively; 2. the Minimum
Rent, commencing at the initial rate of$62.00 per square foot (PSF) for the first year, with annual
escalations by the greater of 3%or CPI; 3. operating expenses, including insurance, property taxes,
and common area maintenance, totaling $8.81 PSF, adjustable every year commencing year 2;4.
The waiver of the personal guaranty requirement; and 5. the inclusion of a termination for
convenience clause; and
WHEREAS, the Administration recommends waiving the competitive bidding requirement,
finding said waiver to be in the best interest of the RDA; and approving the lease agreement,
attached hereto and incorporated herein by reference as Exhibit A, between the RDA, as landlord,
and Art Connection, as Tenant, for the use of the Premises, which lease incorporates the
recommendations of the FCWPC, the amendments made by the RDA board during the March 11,
2015 RDA meeting, and the modifications negotiated by the Administration.
NOW,THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY,that the Chairperson and Members of the
Miami Beach Redevelopment Agency hereby accept the recommendation of the City's Finance and
Citywide Projects Committee (FCWPC); waive the competitive bidding requirement, finding said
waiver to be in the best interest of the RDA; and approve and authorize the Chairperson and
Secretary to execute a lease agreement, attached hereto and incorporated herein by reference as
Exhibit A,with ArtConnection International, Inc. (Tenant), in connection with the use of Suite No.6 at
the Anchor Shops, located at 100 16th Street, Suite No. 6, Miami Beach, Florida(Premises), having
an initial term of five (5) years and two (2) renewal options (at Tenant's option), of three (3) years
and one (1) year and 364 days, respectively.
PASSED and ADOPTED this 2nd day of September, 2015.
ATTEST:
i
Ra- el . :na. .pre - 'A1- 7/ Phil:. L-vi Fe, Chairperson
;-
INCORP ORATED:
JLM\KGB\MS\G
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T:WGENDA\2015\Sep v T•C 't•6•� §o ection Lease RDA\Unit 6 New Lease RDA RESO 2015.doc
a,, 126
•
APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTION
/ IL/AT--
City At r! -y iv r Dote
REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title: PUBLIC HEARING
A Resolution of the Miami Beach Redevelopment Agency (RDA), Accepting the Recommendation of the Finance and Citywide Projects
Committee; Waiving the Competitive Bidding Requirement; and Approving and Authorizing the RDA to Enter a Lease Agreement with
Artconnection International, Inc.(Tenant),in Connection with the Use of Suite No.6 at the Anchor Shops,Located at 10016th Street,Suite No.
6, (Premises);for an Initial Term of Five(5)Years, Commencing on November 12,2015,with Two Renewal Options(at Tenant's Option),of
Three(3)Years and One(1)Year and 364 days, Respectively.
Key Intended Outcome Supported:
Ensure Expenditure Trends Are Sustainable Over The Long Term
Supporting Data(Surveys,Environmental Scan,etc.):Approximately 40%of retail businesses surveyed,rank Miami Beach as one of the
best places to do business and 61%of the same group would recommend Miami Beach as a place to do business.
Item Summary/Recommendation:
The Miami Beach Redevelopment Agency(RDA)currently has a retail lease with ArtConnection International, Inc.(Tenant)for the use of 721
square feet of space at the Anchor Shops,located at 100 16th Street,Suite No.6,Miami Beach, Florida(Premises)for a term of approximately
eleven (11)years,expiring on November 11,2015,without any renewal options.On March 11,2015,the RDA board adopted Resolution No.
612-2015,accepting the recommendation of FCWPC(February 2,2015 meeting),and approving a new retail lease with Tenant.Subsequent to
the March 11,2015 meeting,Staff recalculated the total estimated cost of operating expenses for the Premises at$8.81 per square foot(PSF),
and Staff and Tenant negotiated revised terms. Below is a breakdown of the terms approved at the March 11,2015 RDA meeting and the new
negotiated terms:
Adopted Proposed for
March 11,2015 September 2, 2015
Initial Lease Term: Nine(9)Years 364 Days Five(5)years
Renewal Option: Two renewal options (at Tenant's option),of
None three(3)years and one(1)year and 364
days, respectively.
Base Rent: The Base Rent shall be$65.00 per square The Base Rent shall be$62.00 per square
foot, payable in monthly installments of foot, payable in monthly installments of
$3,905.42, plus applicable sales tax. $3,725.17,plus applicable sales tax.
Base Rent Three percent(3%)or CPI annual Three percent(3%)or CPI annual
Increases: increases,whichever is greater, plus an increases,whichever is greater, plus an
increase to market value after the first 5 increase to market value at each renewal
years option.
Operating Expenses Tenant shall pay its proportionate share of
Tenant shall pay its proportionate share of
Pass-Through: property Taxes and Insurance costs for Property Taxes, Insurance, and Common
the Anchor Shops and Parking Garage. Area Maintenance costs for the Anchor
$1.46 per square foot payable in monthly Shops and Parking Garage. $8.81 per
installments of$87.72. square foot payable in monthly installments
of$529.33.
Security Deposit: Two months base Two months gross
$7,810.83 $8,509.02
(including Operating Expenses)
Personal Guaranty: Tenant's responsibilities under the Lease
shall be personally guaranteed by None
individual owners and/or officers.
The Administration recommends the waiver of the competitive bidding requirement and the approval of the lease agreement.
Advisory Board Recommendation:
The Finance and Citywide Projects Committee(FCWPC)considered this item at their February 2, 105 meeting and recommended the RDA
approve and enter into a Lease Agreement with Art Connection International, Inc.for Unit No.6 at the Anchor Shops for one term of nine(9)
years and 364 days with a reassessment of rent after the fifth (5th)year to the prevailing fair market rent rate for the remainder of the lease.
Financial Information:
Source of Funds: Amount Account
1
OBPI Total
Financial Impact Summary: See above summary. •
City Clerk's Office Legislative Tracking:
Max Sklar,Tourism, Culture, and Economic Development Director
Sign-Offs:
BA Coord; ator Assis .` Director Executive Director
NI'APOd A,Ar - Atri
MIAMIBEACH AGENDA ITEM
DATE 9-2-/
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Mia i Beach Re• velopment Agency
FROM: Jimmy Morales, Executive Director __r r
DATE: September 2, 2015
PUBLIC HEARING
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT - AGENCY (RDA), ACCEPTING THE
RECOMMENDATIONS OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE; WAIVING THE COMPETITIVE BIDDING REQUIREMENT,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE RDA; AND
APPROVING AND AUTHORIZING THE CHAIRPERSON AND SECRETARY TO
EXECUTE A LEASE AGREEMENT WITH ARTCONNECTION INTERNATIONAL,
INC. (TENANT), IN CONNECTION WITH THE USE OF SUITE NO. 6 AT THE
ANCHOR SHOPS, LOCATED AT 100 16TH STREET, SUITE NO. 6, MIAMI
BEACH, FLORIDA (PREMISES); SAID LEASE HAVING AN INITIAL TERM OF
FIVE (5) YEARS, COMMENCING ON NOVEMBER 12, 2015, WITH TWO
RENEWAL OPTIONS (AT TENANT'S OPTION), OF THREE (3) YEARS AND
ONE (1) YEAR AND 364 DAYS, RESPECTIVELY.
BACKGROUND
The Miami Beach Redevelopment Agency (RDA) currently has a retail lease with Art Connection
International, Inc. (Tenant), for the use of 721 square feet of space at the Anchor Shops, located
at 100 16th Street, Suite No. 6, Miami Beach, Florida (the Premises). The Premises is part of a
project which has a parking garage and approximately 20,639 square feet of ground retail space
(collectively, Anchor Garage and Shops), located on 16th Street, between Collins Avenue and
Washington Avenue. Art Connection was originally created by a husband and wife team, Mario
and Gabriella Provenzano, selling custom designed jewelry from Switzerland and other small
European gift items.
In June 2004 the Provenzanos advised the City they were pursuing divorce and the City and
RDA ultimately approved Resolution No. 492-2004, which approved a new Retail Lease
Agreement with Art Connection, with Gabriella Provenzano, as Owner, for a term of
approximately eleven (11) years. The lease expires on November 11, 2015 and does not have
any renewal options.
ANALYSIS
In anticipation of the lease expiration, the City, on behalf of the RDA, began discussions and
negotiations with the Tenant during the summer of 2014. Tenant presented staff with a letter of
intent (Tenant's Offer) in connection with the execution of a new lease with the RDA for the
Premises, based upon the following material terms and conditions: 1. a lease term of 9 years
and 364 days, commencing on November 12, 2015 and ending on November 11, 2025; 2. the
Minimum Rent, commencing at the initial rate of $65.00 per square foot for the first year, with
Redevelopment Agency Memorandum
Anchor Shops—New Lease Agreement
September 2, 2015,
Page 2 of 3
annual escalations by the greater of 3% or CPI; 3. operating expenses (Operating Expenses),
including common area maintenance (CAM), adjustable every year, commencing year 2; and 4.
a guaranty of the lease by Tenant.
The Finance and Citywide Projects Committee (FCWPC) considered Tenant's Offer at their
February 2, 2015 meeting and recommended acceptance of Tenant's Offer and directed Staff to
finalize a new retail lease, for approval by the RDA board.
on March 11, 2015, the RDA board adopted Resolution No. 612-2015, accepting the
recommendation of FCWPC, and approving a new retail lease with Tenant with additional
conditions of annual rent increases by the greater of CPI or 3%, a rent increase to market rates
after 5 years, and a nominal buyout provision.
Subsequent to the March 11, 2015 meeting, Tenant requested the waiver of the personal
guaranty requirement, in light of Tenant's good standing with the City during the previous fifteen
years. At the same time, Staff was reviewing the operating expenses for the facility and
recalculated said estimated cost at $8.81 per square foot (PSF), itemized as follows:
Real Estate Taxes: $ 7.44
Insurance: $ 0.54
Common Area Maintenance: $ 0.87
TOTAL: $ 8.81
Staff and Art Connection negotiated revised terms, which included a decrease in the amount of
the initial Base Rent, to offset the revised increase in the estimated operating expenses (from
$1.46 PSF to $8.81 PSF), with a reduction in said initial Base Rent by $3.00 PSF (from $65.00
PSF to $62.00 PSF); the waiver of the personal guaranty requirement; and the modification of
the lease term, from a nine (9) year 364 day term to an initial term of five (5) years with two (2)
renewal options, including a fair market rent adjustment at the beginning of each option term;
however, the Base Rent increase during each renewal option term shall not be less than the
previous Lease Year's Base Rent plus a 3% escalation. Following is a comparison of the basic
terms and conditions of the revised lease:
Adopted Proposed for
March 11, 2015 September 2, 2015
Initial Lease Nine (9) Years 364 Days Five (5) years
Term:
Renewal Option: Two renewal options (at Tenant's
None option), of three (3) years and one
(1) year and 364 days, respectively.
Base Rent: The Base Rent shall be $65.00 per The Base Rent shall be $62.00 per
square foot, payable in monthly square foot, payable in monthly
installments of$3,905.42, plus installments of$3,725.17, plus
applicable sales tax._ applicable sales tax.
Base Rent Three percent (3%) or CPI annual Three percent (3%) or CPI annual
Increases: increases, whichever is greater, increases, whichever is greater,
plus an increase to market value plus an increase to market value at
after the first 5 years each renewal option.
Operating Tenant shall pay its proportionate Tenant shall pay its proportionate
Expenses Pass- share of Property Taxes and share of Property Taxes, Insurance,
Through: Insurance costs for the Anchor and Common Area Maintenance
Shops and Parking Garage. $1.46 costs for the Anchor Shops and
Redevelopment Agency Memorandum
Anchor Shops—New Lease Agreement
September 2, 2015
Page3of3
per square foot payable in monthly Parking Garage. $8.81 per square
installments of$87.72. foot payable in monthly installments
of$529.33.
Security Two months base Two months gross
Deposit: $7,810.83 $8,509.02
(including Operating Expenses)
Personal Tenant's responsibilities under the
Guaranty: Lease shall be personally None
guaranteed by individual owners
and/or officers.
CONCLUSION AND RECOMMENDATION
the Administration recommends waiving the competitive bidding requirement, finding said
waiver to be in the best interest of the RDA; and approving the lease agreement, attached
hereto and incorporated herein by reference as Exhibit A, between the RDA, as landlord, and
ArtConnection, as Tenant, for the use of the Premises, which lease incorporates the
recommendations of the FCWPC, the amendments made by the RDA board during the March
11, 2015 RDA meeting, and the modifications negotiated by the Administration, for a term
commencing on November 12, 2015 and ending on November 11, 2020, with two options to
renew (at Tenant's option), of three (3) years and one (1) year and 364 days, respectively.
JLM/KGB/ l/MMM/RJG
Exhibit:
A— Draft Lease Agreement
T:\AGENDA\2015\SEPTEMBER\TCED\UNIT 6 ARTCONNECTION LEASE RDA\UNIT 6 NEW LEASE RDA MEMO 2015(MM).DOC
LANDLORD: Miami Beach Redevelopment Agency, a public body
corporate and politic
1700 Convention Center Drive
Miami Beach, Florida 33139
TENANT: Art Connection International, Inc.
100 16th Street, Suite 6
Miami Beach, FL 33139
DATE OF EXECUTION: , 2015
ANCHOR SHOPS AT SOUTH BEACH
RETAIL LEASE
EXHIBIT
(i)
Agenda Item RDA I-A
Date 9
LEASE SUMMARY
The following is a summary of basic lease provisions with respect to the Lease. It is an integral part of the
Lease, and terms defined or dollar amounts specified in this Summary shall have the meanings or amounts as
stated, unless expanded upon in the text of the Lease and its Exhibits, which are attached to and made a part of
this Summary.
1. Date of Lease Execution: , 2015.
2. "Landlord": Miami Beach Redevelopment Agency
The Executive Director shall be authorized to act on
behalf of Landlord. For purposes of managing this
Lease, the Tourism, Culture and Economic Development
Director shall be the Executive Director's designee.
3. Landlord's Address: Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: Max Sklar, Tourism, Culture and Economic
Development Director
with a copy to:
City of Miami Beach
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: Legal Department
4. "Tenant": ArtConnection International, Inc.
5. Tenant's Address: 100 16th Street, Suite 6
Miami Beach, FL 33139
6. Premises (section 1.1): 100 16th Street, Suite 6
Miami Beach, FL 33139
As shown on Exhibit"B"
7. Gross Rentable
Area of Premises (section 1.1): Approximately 721 square feet
Retail Space(section 1.1): Approximately 20,639 rentable square feet
8. Tenant's Proportionate Share
(section 2.4)of the Retail Space: 3.493%
9. Permitted Use of
Premises (section 3.1): First-class retail store selling costume jewelry that may
be made from or contains jewels and precious metal, but
is not considered fine Jewelry (and subject to the
prohibited uses described in Exhibit"D"to the Lease)
(ii)
10. Term of Lease (section 1.1): "Initial Term of the Lease": Five (5)years
"Commencement Date": November 12, 2015
• "Rent Commencement Date": November 12, 2015
"Expiration Date": November 11, 2020
(subject to further extensions through the exercise of
the Renewal Options, pursuant to the terms set forth
herein)
"Renewal Options": Two(2) Renewal Options
"First Renewal Option" is for three(3)years,
commences November 12, 2020, and expires
November 11, 2023.
"Second Renewal Option" is for one(1)year and
364 days, commences November 12, 2023 and expires
November 10, 2025.
Tenant must notify Landlord in writing, no later than one
hundred and eighty(180)days prior to the expiration of
the Initial Term of the Lease or the term of any Renewal
Option, as applicable, of its intention to exercise a
Renewal Option. At the commencement of each
Renewal Option, the Minimum Rent shall be adjusted to
the then current Fair Market Rent.
11. "Minimum Rent"(section 2.2):
LEASE YEAR ANNUAL MINIMUM RENT* MONTHLY PAYMENT
(PLUS SALES TAX)
1 $44,702 $3,725.17
2—End of Initial Term of the See Note * See Note*
Lease
Renewal Options See Note * See Note*
* Beginning on November 12, 2016, and at the beginning of each succeeding Lease Year thereafter during
the Initial Term of the Lease and during the term of any subsequent Renewal Options, the Minimum Rent
shall be increased annually in increments of the greater of 3% or the Consumer Price Index(CPI)rate change
—All Urban Consumers (CPI — U.S. City Average All Items, base year 1982-84 = 100 ("Index"), as published
by the United States Department of Labor, Bureau of Labor Statistics ("Annual Rent Increase"). The CPI
increase calculation shall be determined by multiplying the Minimum Rent then being paid by a fraction, the
numerator of which shall be the CPI for the third month—preceding the month of adjustment, and the
denominator of which shall be the CPI for the fifteenth month preceding the month of adjustment.
Effective at the commencement of each Renewal Option term, Tenant's Minimum Rent shall be adjusted
("Renewal Option Rent Adjustment"), based upon the fair market rents in effect("Fair Market Rent").
The Fair Market Rent shall be determined by Landlord, by securing the opinion of an independent and
licensed appraiser which will be retained by the Landlord at the Landlord's expense and discretion; however,
any Renewal Option Rent Adjustment shall not be less than, the Minimum Rent for the immediately prior
Lease Year plus the Annual Rent Increase ("Fair Market Adjustment Procedure"). If Tenant exercises a
Renewal Option, Tenant accepts the Fair Market Rent amount.
(iii)
Minimum Rent shall continue to be payable in monthly installments as otherwise described above until
Landlord notifies Tenant of the new monthly Minimum Rent installment amount. Landlord shall attempt to so
notify Tenant prior to the commencement of each adjustment date; however, failure of Landlord to timely
notify Tenant of the new monthly Minimum Rent installment amount shall not be deemed a waiver by
Landlord of the increased rental; the new monthly Minimum Rent amount (or any portion not previously paid)
shall be payable, retroactive to the commencement of the new adjustment date, upon notification by Landlord
to Tenant of the new monthly Minimum Rent installment amount.
12. Percentage Rental (section 2.3): N/A
13. Prepaid Rent(section 2.2): $4,552.32, including applicable sales tax(due upon
execution of Lease).
14. Security Deposit(section 2.7): $8,509.02(due upon execution of Lease), less any
existing deposit from the previous lease.
15. Cost Pass-Throughs
(Operating Expenses)(section 2.4): Proportionate Share of Property Taxes, Insurance, and
Common Area Maintenance of the Anchor Shops and
Parking Garage.
OPERATING EXPENSES
OPERATING EXPENSES MONTHLY/ANNUAL PAYMENT
LEASE YEAR COST PER SQUARE FOOT** (PLUS SALES TAX)
1 $8.81 $529.34/$6,352.01
2— End of Lease Term See Note** See Note**
The Operating Expenses for the first Lease Year comprise of the following figures:
Insurance $ 0.54 $32.45/$389.34
Taxes $ 7.44 $447.02/$5,364.24
CAM $ 0.83 $49.87/$598.43
** Beginning on November 12, 2016, and at the beginning of each succeeding Lease Year thereafter during
the Initial Term of the Lease and during the term of any subsequent Renewal Options, the estimated
Operating Expenses for the upcoming Lease Year shall be adjusted, as determined by Landlord in its sole
discretion and judgment, to reflect the Tenant's Proportionate Share of Property Taxes, Insurance, and
Common Area Maintenance incurred by Landlord during the previous Lease Year ("Operating Expense
Adjustment"). Simultaneously with this adjustment, Tenant shall be responsible for paying any difference
between the Proportionate Share of estimated Operating Expenses paid by Tenant during the previous Lease
Year and the Proportionate Share owed by Tenant in connection with the actual Operating Expenses for the
previous Lease Year ("Operating Expense True-Up"). Controllable expenses, hereby defined as all expenses
other than property taxes, insurance and utilities shall be capped at no more than a five percent(5%) increase
above the previous Lease Year.
Operating Expenses shall continue to be payable in monthly installments as otherwise described above until
Landlord notifies Tenant of the new monthly Operating Expense Adjustment installment and True-Up
payment. Landlord shall attempt to so notify Tenant prior to the commencement of each Operating Expense
Adjustment date and Operating Expense True-Up amount; however, failure of Landlord to timely notify Tenant
of said Operating Expense Adjustment/True-Up amounts shall not be deemed a waiver by Landlord of the
right to make said Operating Expense Adjustment/True-Up; the new Operating Expense Adjustment or any
(iv)
sums due pursuant to the Operating Expense True-Up for the previous Lease Year shall be payable,
retroactive to the effective date of said adjustment date, upon notification by Landlord to Tenant of the new
monthly Operating Expense payment amount and the total True-Up amount due.
16. Comprehensive General
Liability Insurance(section 6.1): $2,000,000.00
17. Monthly Promotional Charge
(section 13.1): N/A
18. Broker(s)(section 14.12): N/A
19. Completion Date for Tenant's Work
(section 5.1): N/A
20. Trade Name(section 3.1): Art Connection International, Inc.
•
(v)
THIS LEASE (the "Lease"), dated the day of , 2015, is made between the
Miami Beach Redevelopment Agency, a public body corporate and politic(the"Landlord"), and Art Connection
International, Inc. (the"Tenant").
RECITALS:
A. The Landlord is the fee simple owner of a certain facility (the"Facility") containing a
municipal parking garage and appurtenances containing approximately eight hundred (800) parking spaces
(the"Garage") and certain retail space (the"Retail Space") located in an area bounded by Washington and Collins
Avenues in the proximity of 16th Street, City of Miami Beach, Metropolitan Dade County, Florida, as more particularly
described in Exhibit"A,"attached hereto and made a part hereof(the"Land"). The Landlord is the fee simple owner
of the Land and the Facility.
B. Landlord and Tenant desire to enter into this Lease for a portion of the Retail Space, on
the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
hereby agree as follows:
ARTICLE I. TERM.
1.1 Grant; Term. In consideration of the performance by Tenant of its obligations under this Lease,
Landlord leases to Tenant, and Tenant leases from Landlord, for the Term, the "Premises." A site plan showing
the location of the Retail Space within the Facility, as well as the location of the Premises within the Retail Space,
is attached hereto and made a part hereof as Exhibit"B." The gross rentable area of the Premises and Retail
Space shown on the Lease Summary do not represent accurate measurements of the square footage contained
in the Premises or the Retail Space, but are mere estimates.
The 'Term" of the Lease is the period from the Commencement Date as specified in the Lease
Summary, through the Expiration Date, as specified in the Lease Summary.
1.2. Termination for Convenience by Landlord. Notwithstanding any other term or condition in this
Lease, and effective no sooner than the commencement of the First Renewal Option Term, Landlord, through its
Executive Director, reserves the right to terminate. this Lease, for convenience and without cause, and without
liability to Landlord, upon providing Tenant with prior written notice, at least 180 days prior to the effective date of
the termination for convenience.
1.3 Landlord's Work. Tenant acknowledges and agrees that it is accepting possession of the
Premises in as-is condition and that, except as otherwise expressly hereinafter set forth, Landlord has no
obligation to furnish, render, or supply any money, work, labor, material, fixture, equipment, or decoration with
respect to the Premises. Landlord has caused the completion of the shell improvements to the Retail Space
(the"Shell Improvements"), with Tenant responsible for all improvements, including any and all utility impact fees
and connection fees, charges, and/or deposits as may be required in connection with Tenant's Work, as
hereinafter defined.
1.4 Tenant's Work. Landlord acknowledges that the Tenant has made improvements to the
Premises and has had signage installed, pursuant to the terms of a prior lease ("Tenant's Work"), and as such,
Tenant's Work is acceptable to Landlord, to the extent that same was properly permitted, and done in compliance
with all applicable building codes, and any other Municipal, County, State and Federal laws.
1
ARTICLE II. RENT.
2.1 Covenant to Pay.Tenant shall pay to Landlord all sums due hereunder from time to time from the
Rent Commencement Date without prior demand, together with all applicable Florida sales tax thereon; however,
unless otherwise provided in this Lease, payments other than Tenant's regular monthly payments of Minimum
Rent shall be payable by Tenant to Landlord within five(5) days following demand. All rent or other charges that
are required to be paid by Tenant to Landlord shall be payable at Landlord's address indicated on the Lease
Summary. Minimum Rent, and additional rent (which is all sums payable to Landlord other than Minimum Rent)
for any "Lease Year" consisting of less than twelve(12) months shall be prorated on a per diem basis, based
upon a period of 365 days. "Lease Year" means the twelve(12) full calendar months commencing on the
Commencement Date. However,the final Lease Year may contain less than twelve(12) months due to expiration
or sooner termination of the Term. Tenant agrees that its covenant to pay rent and all other sums under this
Lease is an independent covenant and that all such amounts are payable without counterclaim, set-off, deduction,
abatement, or reduction whatsoever, except as expressly provided for in this Lease.
2.2 Minimum Rent. Subject to any escalation which may be provided for in this Lease, Tenant shall
pay Minimum Rent for the Term in the initial amount specified in the Lease Summary, which, except for the first
installment, shall be payable throughout the Term in equal monthly installments in advance on the first day of
each calendar month of each year of the Term, such monthly installments to be in the amounts (subject to
escalation) specified in the Lease Summary. The first monthly installment of Minimum Rent shall be due on the
date of this Lease. The Minimum Rent described above shall be adjusted during the Term of this Lease as
provided in the Lease Summary.
2.3. Percentage Rental. Intentionally Omitted.
2.4 Operating Expenses: Property Taxes, Insurance, and Common Area Maintenance.
Tenant shall remit together with regular monthly payments of Minimum Rent, its proportionate share of estimated
Operating Expenses for the Premises, as additional rent, as determined by Landlord, in its sole discretion and
judgment, including Property Taxes, Insurance, and Common Area Maintenance, in accordance with Section 15
of the Lease Summary, and as more particularly described hereinafter.
Tenant's Proportionate Share means a fraction, the numerator of which is the square footage of rentable
space occupied by Tenant, and the denominator of which is the total square footage of rentable area in the Retail
Space as determined in Section 8 of the Lease Summary.
Tenant agrees and understands that the costs incurred for Operating Expenses may increase or
decrease and, as such, Tenant's Proportionate Share of Operating Expenses shall increase or decrease
accordingly.
2.4.1 Property Taxes: Operating Expenses includes Tenant's Proportionate Share of the Retail
Space's pro-rata share of the Property Taxes for the Facility.
The term "Property Taxes" shall mean (i) the portion of real estate taxes, assessments, and special
assessments of any kind which may be imposed upon the Facility and (ii) any expenses incurred by the
Landlord in obtaining a reduction of any such taxes or assessments.
The term "Property Tax Year" shall mean the period of twelve (12) calendar months, beginning on
January 1st of each year.
Tenant shall pay its Proportionate Share of the Retail Space's pro-rata share of the Property Taxes for
the Facility, as determined by Landlord, in its sole discretion and judgement, based upon the real estate
• tax bill for the Facility, by determining the ratio of the assessed taxable value (as determined by the
Miami-Dade County Property Appraiser's Office)that the Retail Space has to the assessed taxable value
of the Facility. If a Property Tax Year ends after the expiration or termination of the term of this Lease,
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the Property Tax Payment therefore shall be prorated to correspond to that portion of such Property Tax
Year occurring within the term of this Lease.
2.4.2 Insurance. Operating Expenses shall also include Tenant's Proportionate Share of the
Retail Space's insurance costs for the Facility, as determined by the Landlord, in its sole discretion and
judgment, to be sufficient to insure and/or self-insure the Facility for hazard, flood, windstorm, and liability
insurance for the following calendar year. Tenant acknowledges that Landlord may self-insure for any or
all of Landlord's Insurance coverage's, including without limitation liability insurance. The Retail Space's
pro-rata share of the insurance cost shall be determined, based upon the ratio that the replacement value
of the Retail space has to the replacement value of the Facility. This insurance coverage is in addition to
the insurance required pursuant to Article VI, which shall be obtained at Tenant's sole expense and
responsibility.
2.4.3 Common Area Maintenance ("CAM"). Operating Expenses shall also include Tenant's
Proportionate Share of the Retail Space's pro-rata share of the Facility's CAM (as hereinafter defined)
costs, as determined by Landlord, in its sole discretion and judgment, from the Facility's CAM costs. The
Retail Space's pro-rata share of the CAM costs shall be determine based upon the ratio that the usable
square feet of the Retail Space has to the usable square feet of the Facility.
Common Area Maintenance ("CAM") shall mean the following costs and expenses incurred in
operating, repairing, and maintaining the "Common Facilities" (as hereinafter defined) and shall include,
without limitation, water service to the Facility, sewer service to the Facility, trash removal from the
Facility, costs incurred for gardening and landscaping, repairing and maintaining elevator(s), painting,
janitorial services (except for areas within the Premises), lighting, cleaning, striping, policing, removing
garbage and other refuse and trash, removing ice and snow, repairing and maintaining sprinkler systems,
water pipes, air-conditioning systems, temperature control systems, and security systems, fire alarm
repair and maintenance and other equipment in the Common Facilities and the exterior and structural
portions of the Facility, paving and repairing, patching and maintaining the parking areas and walkways,
and cleaning adjacent areas, management fees and the City's employment expenses to employees
furnishing and rendering any services to the common areas, together with an additional administration
charge equal to fifteen percent (15%) of all expenses included in the annual Common Facilities'
expenses, provided by Landlord for the common or joint use and/or benefit of the occupants of the
Facility, their employees, agents, servants, customers and other invitees.
"Common Facilities" shall mean all Facility areas, spaces, equipment, as well as certain services,
available for use by or for the benefit of Tenant and/or its employees, agents, servants, volunteers,
customers, guests and/or invitees.
2.5 Payment of Personal Property Taxes; Sales Tax Reports. Tenant shall pay, when due, all taxes
attributable to the personal property, trade fixtures, business, occupancy, or sales of Tenant or any other
occupant of the Premises and to the use of the Retail Space by Tenant or such other occupant. Tenant shall
provide Landlord with copies of Tenant's sales tax reports provided to the State of Florida, as and when such
reports are provided to the State. Landlord shall have the right to disclose such reports to any person or entity
having an interest or prospective interest in the Retail Space.
2.6 Rent Past Due. If any payment due from Tenant shall be overdue more than five (5) days, a late
charge of five(5%) percent of the delinquent sum may be charged by Landlord. If any payment due from Tenant
shall remain overdue for more than fifteen (15)days, an additional late charge in an amount equal to the lesser of
the highest rate permitted by law or one and one-half(1 1/2%) percent per month (eighteen (18%) percent per
annum) of the delinquent amount may be charged by Landlord, such charge to be computed for the entire period
for which the amount is overdue and which shall be in addition to and not in lieu of the five(5%) percent late
charge or any other remedy available to Landlord.
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2.7 Security Deposit. Landlord acknowledges receipt of a security deposit in the amount specified on the
Lease Summary to be held by Landlord, without any liability for interest thereon, as security for the performance
by Tenant of all its obligations under this Lease. Landlord shall be entitled to commingle the security deposit with
Landlord's other funds. If Tenant defaults in any of its obligations under this Lease, Landlord may at its option,
but without prejudice to any other rights which Landlord may have, apply all or part of the security deposit to
compensate Landlord for any loss, damage, or expense sustained by Landlord as a result of such default. If all or
any part of the security deposit is so applied, Tenant shall restore the security deposit to its original amount on
demand of Landlord. Within thirty(30)days following termination of this Lease, if Tenant is not then in default, the
security deposit will be returned by Landlord to Tenant.
2.8 Landlord's Lien. To secure the timely construction and installation of all improvements to the
Premises by tenant and to secure the payment of all rent and other sums of money due and to become due
hereunder and the faithful performance of this Lease by Tenant, Tenant hereby gives to Landlord an express first
and prior contract lien and security interest on all property now or hereafter acquired (including fixtures,
equipment, chattels, and merchandise) which may be placed in the Premises and also upon all proceeds of any
insurance which may accrue to Tenant by reason of destruction of or damage to any such property. Such
property shall not be removed there from without the written consent of Landlord until all arrearages in rental and
other sums of money then due to Landlord hereunder shall first have been paid; provided, Tenant may operate its
business in the ordinary course and the removal of merchandise from the Premises by customers of Tenant shall
not be a default under this section. All exemption laws are hereby waived in favor of said lien and security
interest. This lien and security interest is given in addition to Landlord's statutory lien and shall be cumulative
thereto. Landlord shall, in addition to all of its rights hereunder, also have all of the rights and remedies of a
secured party under the Uniform Commercial Code as adopted in the State in which the Premises is located. To
the extent permitted by law, this Lease shall constitute a security agreement under Article 9 of the Florida Uniform
Commercial Code.
ARTICLE III. USE OF PREMISES.
3.1 Permitted Use. The Premises shall be used and occupied only for the sale at retail of goods or
services as specified in the Lease Summary. The business of Tenant in the Premises shall be carried on under
the Trade Name specified in Section 20 of the Lease Summary and under no other name unless approved by
Landlord in writing. Tenant shall carry on its business on the Premises in a reputable manner and shall not do,
omit, permit, or suffer to be done or exist upon the Premises anything which shall result in a nuisance, hazard, or
bring about a breach of any provision of this Lease or any applicable municipal or other governmental law or
regulation, or would otherwise be inconsistent with a first-class retail center or incompatible with retail uses
ancillary to a first-class convention center hotel. Tenant shall observe all reasonable rules and regulations
established by Landlord from time to time for the Retail Space. The rules and regulations in effect as of the date
hereof are attached to and made a part of this Lease as Exhibit"C." Landlord will provide a copy of any
amendments to the rules and regulations at least seven (7) days prior to the effective date of any such
amendments. Tenant shall display such name as Landlord may from time to time designate for the Retail Space
in its stationery, materials, webpages, or social media sites, relevant to the Premises which is given, visible,
available, emailed, or any way communicated to customers of Tenant. Tenant shall promote such name in any
advertisements or promotional material published, initiated, or controlled by Tenant in regard only to its business
from the Premises. In the event a name is designated by the Landlord, Tenant shall either be permitted to finish
distributing and displaying any advertisements or promotional material, or Landlord shall reimburse Tenant for
comparable replacement of said advertisements and promotional materials that were invoiced prior to Tenant
receiving written Notice from Landlord of such name to be advertised and promoted by Tenant. The names for
the Retail Space and the project of which the Retail Space is a part, which Landlord may from time to time adopt,
and every name or mark adopted by Landlord in connection with the Retail Space shall be used by Tenant only in
association with the business carried on in the Premises during the Term and Tenant's use thereof shall be
subject to such reasonable regulation as Landlord may from time to time impose.
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3.2 Compliance with Laws. The Premises shall be used and occupied in a safe, careful, and proper manner
so as not to contravene any present or future laws, rules, regulations, constitutions, orders, ordinances, charters,
statutes, codes, executive orders, and requirements of all governmental authorities having jurisdiction over the
Premises or any street, road, avenue, or sidewalk comprising a part of, or lying in front of,the Premises or any vault in
or under the Premises (including, without limitation, any of the foregoing relating to handicapped access or parking,
the local Facility codes, and the laws, rules, regulations, orders, ordinances, statutes, codes, and requirements of any
applicable Fire Rating Bureau or other body exercising similar functions), the temporary and/or permanent certificate
or certificates of occupancy issued for the Premises as then in force, and any and all provisions and requirements of
any property, casualty, or other insurance policy required to be carried by Tenant under this Lease. If due to
Tenant's use of the Premises, repairs, improvements, or alterations are necessary to comply with any of the
foregoing, Tenant shall pay the entire cost thereof.
3.3 Signs. Tenant, at Tenant's expense, shall erect and maintain identification signage upon the
storefront of the Premises. The design and specification of such signage shall be subject to Landlord's approval
and such design and specification (including camera-ready artwork) shall be submitted for Landlord's prior
approval. Except with the prior written consent of Landlord, Tenant shall not erect, install, display, inscribe, paint,
or affix any signs, lettering, or advertising medium upon or above any exterior portion of the Premises or in or on
Tenant's storefront or storefront window.
3.4 Environmental Provisions.
(a) Tenant shall not knowingly incorporate into, use, or otherwise place or dispose of at the
Premise s or in the Retail Space (or allow others to incorporate into, use, or otherwise place or dispose of at the
Premises or in the Retail Space) any Hazardous Materials, as hereinafter defined, unless (i)such Hazardous
Materials are for use in the ordinary course of business (i.e., as with office or cleaning supplies), (ii) notice of and
a copy of the current material safety data sheet is provided to Landlord for each such Hazardous Material (except
for Hazardous Materials used by Tenant in the ordinary course of business (i.e., as with office or cleaning
supplies)), and (iii)such materials are handled and disposed of in accordance with all applicable governmental
laws, rules, and regulations. If Landlord or Tenant ever has knowledge of the presence in the Premises or the
Retail Space of Hazardous Materials which affect the Premises, such party shall notify the other thereof in writing
promptly after obtaining such knowledge. For purposes of this Lease, "Hazardous Materials" shall mean:
(a)petroleum and its constituents; (b)radon gas, asbestos in any form which is or could become friable, urea
formaldehyde foam insulation, transformers or other equipment which contain dielectric fluid containing levels of
polychlorinated biphenyls in excess of federal, state or local safety guidelines, whichever are more stringent; (c)any
substance, gas, material or chemical which is or may hereafter be defined as or included in the definition of
"hazardous substances," "hazardous materials," "hazardous wastes," "pollutants or contaminants," "solid wastes," or
words of similar import under any applicable governmental laws, rules, and regulations including, but not limited to,
the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. §9061 et
seq.; the Hazardous Materials Transportation Act, as amended, 49 U.S.C. § 1801, et seq.; the Resource
Conservation and Recovery Act, as amended, 42 U.S.C. §6901, et seq.; the Federal Water Pollution Control Act, as
amended, 33 U.S.C. § 1251, et seq.; and Florida Statutes, Chapters 376 and 403; and (d)any other chemical,
material, gas, or substance, the exposure to or release of which is regulated by any governmental or
quasi-governmental entity having jurisdiction over the Retail Space or the operations thereon.
(b) If Tenant or its employees, agents, or contractors shall ever violate the provisions of
subsection (a), above, then Tenant shall clean-up, remove, and dispose of the Hazardous Material causing the
violation, in compliance with all applicable governmental standards, laws, rules, and regulations and repair any
damage to the Premises or Retail Space within such period of time as may be reasonable under the
circumstances after written notice by Landlord, provided that such work shall commence not later than thirty(30)
days from such notice and be diligently and continuously carried to completion by Tenant or Tenant's designated
contractors. Tenant shall notify Landlord of its method, time, and procedure for any clean-up or removal of
Hazardous Materials under this provision; and Landlord shall have the right to require reasonable changes in
such method, time, or procedure or to require the same to be done after normal business hours or when the
Retail Space is otherwise closed (i.e., holidays) if reasonably required for the protection of other tenants or
occupants of the Retail Space.
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(c) Tenant agrees to defend, indemnify, and hold harmless Landlord, and the City of Miami
Beach (the"City") against any and all claims, costs, expenses, damages, liability, and the like, which Landlord
may hereafter be liable for, suffer, incur, or pay arising under any applicable environmental laws, rules, and
regulations and resulting from or arising out of any breach of the covenants contained in this section 3.4, or out of
any act, activity, or violation of any applicable environmental laws, rules, and regulations on the part of Tenant, its
agents, employees, or assigns. Tenant's liability under this section 3.4 shall survive the expiration or any
termination of this Lease.
3.5 Hours; Continued Occupancy. During the Term, Tenant shall conduct its business in the
Premises, at a minimum, on all days and during all hours established by Landlord from time to time as store hours
for the Retail Space. Tenant may conduct business on the Premises, in addition to the foregoing times, in
Tenant's reasonable judgment in order to maximize sales from the Premises, at Tenant's sole expense.
However, Landlord shall not be responsible for providing common area or other services during such additional
hours. Tenant shall open the whole of the Premises for business to the public, fully fixtured, stocked, and staffed
on the Commencement Date, and shall continuously, actively, and diligently carry on the business specified in
section 3.1 on the whole of the Premises during the Term, during such hours and upon such days as are herein
required, except when prevented from doing so by force majeure. Tenant acknowledges that its continued
occupancy,of the Premises and the regular conduct of its business therein are of utmost importance to
neighboring tenants and to Landlord in the renting of space in the Retail Space, the renewal of other leases
therein, the efficient and economic supply of services and utilities. Tenant acknowledges that Landlord is
executing this Lease in reliance thereupon and that the same is a material element inducing Landlord to execute
this Lease. Tenant shall not keep or display any merchandise on or otherwise obstruct the common areas and
shall not sell, advertise, conduct, or solicit business anywhere within the Retail Space other than in the Premises.
Tenant shall ship and receive supplies, fixtures, equipment, furnishings, wares, and merchandise only through the
appropriate service and delivery facilities provided by Landlord; and shall not park its trucks or other delivery
vehicles or allow suppliers or others making deliveries to or receiving shipments from the Premises to park in the
parking areas, except in those parts thereof as may from time to time be allocated by Landlord for such purpose.
Tenant shall maintain available a substantial stock of goods, wares, and merchandise adequate to ensure
successful operation of Tenant's business, and shall employ and maintain sales and other personnel sufficient at
all times for proper service to customers.
3.6 Prohibited Uses. Notwithstanding any other provisions of this Lease, Tenant shall not use the
Premises nor permit them to be used for any of the following purposes: (A)for the sale by Tenant, as its principal
business purpose, of any merchandise which Tenant, in the course of its normal business practice, purchases at
manufacturers' clearances or purchases of ends-of-runs, bankruptcy stock, seconds, or other similar
merchandise; (B)for the sale of second-hand goods, war surplus articles, insurance salvage stock, fire sale stock,
merchandise damaged by or held out to be damaged by fire, except merchandise damaged by fire or smoke
occurring in the Retail Space, and then only for thirty(30) days after the date of any such damage; (C)as an
auction or flea market; (D)for a bankruptcy sale or going-out-of-business sale or liquidation sale or any similar
sale, unless Tenant is in fact in bankruptcy or is going out of business or is in liquidation, in which case such sale
shall not continue beyond thirty(30) days; (E)a business primarily used for an order office, mail order office, or
catalogue store; or (F)any business in which Tenant is engaged in intentionally deceptive or fraudulent
advertising or selling practices or any other act or business practice contrary to honest retail practices.
3.7 Intentionally Omitted.
3.8 Exclusive Use. So long as Tenant is in actual occupancy of the Premises and using the
Premises for the permitted use set forth in the Lease Summary, Landlord agrees not to enter into any leases for
space in the Retail Space with persons or entities whose primary business at the Retail Space would be the sale
of costume jewelry that may be made from or contains jewels and precious metal, but is not considered fine
jewelry.
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•
ARTICLE IV. ACCESS AND ENTRY.
4.1 Right of Examination. Landlord shall be entitled at all reasonable times and upon reasonable
notice (but no notice is required in emergencies) to enter the Premises to examine them if Landlord reasonably
believes that Tenant is not complying with any of its obligations hereunder; to make such repairs, alterations, or
improvements thereto as Landlord considers necessary or reasonably desirable; to have access to underfloor
facilities and access panels to mechanical shafts and to check, calibrate, adjust, and balance controls and other
parts of the heating, air conditioning, ventilating, and climate control systems. Landlord reserves to itself (and
others acting on behalf of Landlord including, without limitation, the City) the right to install, maintain, use, and
repair pipes, ducts, conduits, vents, wires, and other installations leading in, through, over, or under the Premises
and for this purpose, Landlord may take all material into and upon the Premises which is required therefor.Tenant
shall not unduly obstruct any pipes, conduits, or mechanical or other electrical equipment so as to prevent
reasonable access thereto. Landlord reserves the right to use all exterior walls and roof area. Landlord shall
exercise its rights under this section, to the extent possible in the circumstances, in such manner so as to
minimize interference with Tenant's use and enjoyment of the Premises and Tenant's property.
4.2 Right to Show Premises. Landlord and its agents have the right to enter the Premises at all
reasonable times and upon reasonable notice to show them to prospective purchasers, lenders, or anyone having
a prospective interest in the Retail Space, and, during the last six(6) months of the Term (or the last six(6)
months of any renewal term if this Lease is renewed), to show them to prospective tenants. Landlord shall
exercise its rights under this section, to the extent possible in the circumstances, in such manner so as to
minimize interference with Tenant's use and enjoyment of the Premises and Tenant's property.
ARTICLE V. MAINTENANCE, REPAIRS, AND ALTERATIONS.
5.1. (Intentionally Omitted)
5.2 Maintenance and Repairs by Landlord. It is hereby acknowledged and agreed that Landlord shall
maintain and repair the base building, mechanical and electrical systems, and roof and foundation of the Retail
Space. Tenant will notify in writing of any necessary repairs that are the obligation of Landlord. Landlord shall not
be responsible for any damages caused to Tenant by reason of failure of any equipment or facilities serving the
Retail Space or delays in the performance of any work for which the Landlord is responsible to perform pursuant
to this Lease. Notwithstanding any other provisions of this Lease, if any part of the Retail Space is damaged or
destroyed or requires repair, replacement, or alteration as a result of the act or omission of Tenant, its employees,
agents, invitees, licensees, or contractors, Landlord shall have the right to perform same and the cost of such
repairs, replacement, or alterations shall be paid by Tenant to Landlord upon demand. In addition, if, in an
emergency, it shall become necessary to make promptly any repairs or replacements required to be made by
Tenant, Landlord may re-enter the Premises and proceed forthwith to have the repairs or replacements made and
pay the costs thereof. Upon demand, Tenant shall reimburse Landlord for the cost of making the repairs.
Landlord shall exercise its rights under this section in a manner so as to minimize any disruption or interference
with the operation of Tenant's business and property.
5.3 Maintenance and Repairs by Tenant. Tenant shall, at its sole cost, repair and maintain the
Premises exclusive of base Facility mechanical and electrical systems, all to a standard consistent with a first
class retail center, with the exception only of those repairs which are the obligation of the Landlord pursuant to
this Lease. Without limiting the generality of the foregoing, Tenant is specifically required to maintain, make
repairs and to replace as needed (i)the portion of any pipes, lines, ducts, wires, or conduits contained within the
Premises; (ii)windows, plate glass, doors, and any fixtures or appurtenances composed of glass (including,
without limitation, interior and exterior washing of windows and plate glass; (iii)Tenant's sign; (iv)any heating or
air conditioning equipment serving the Premises ("HVAC") (which shall include, without limitation, a preventive
maintenance HVAC service contract. Such service contract shall include, without limitation, preventive HVAC
maintenance no less than quarterly); and (v)the Premises or the Retail Space when repairs to the same are
necessitated by any act or omission of Tenant, or the failure of Tenant to perform its obligations under this Lease.
All repair and maintenance performed by Tenant in the Premises shall be performed by contractors or workmen
designated or approved by Landlord, which approval shall not be unreasonably withheld or delayed. At the
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expiration or earlier termination of the Term, Tenant shall surrender the Premises to Landlord in as good condition
and repair as Tenant is required to maintain the Premises throughout the Term, reasonable wear and tear
excepted. Tenant shall also furnish, maintain, and replace all electric light bulbs, tubes, and tube casings located
within or serving the Premises and Tenant's signage, all at Tenant's sole cost and expense.
5.4 Approval of Tenant's Alterations. No alterations (including, without limitation, improvements,
additions, or modifications to the Premises) shall be made by Tenant to the Premises without Landlord's prior
written approval, which, as to exterior or structural alterations may be withheld in Landlord's sole discretion. Any
alterations by Tenant shall be performed at the sole cost of Tenant, by contractors and workmen approved by
Landlord, which approval shall not be unreasonably withheld or delayed, in a good and workmanlike manner, and
in accordance with all applicable laws and regulations. .
5.5 Removal of Improvements and Fixtures. All leasehold improvements and fixtures (other than
unattached, movable trade fixtures which can be removed without damage to the Premises)shall at the expiration
or earlier termination of this Lease become Landlord's property. Tenant may, during the Term, in the usual course
of its business, remove its trade fixtures, provided that Tenant is not in default under this Lease; and Tenant shall,
at the expiration or earlier termination of the Term, at its sole cost, remove such of the leasehold improvements
(except for improvements installed by Landlord prior to the Commencement Date) and trade fixtures in the
Premises as Landlord shall require to be removed and restore the Premises to the condition existing prior to such
removal. Tenant shall at its own expense repair any damage caused to the Retail Space by such removal. If
Tenant does not remove its trade fixtures at the expiration or earlier termination of the Term, the trade fixtures
shall, at the option of Landlord, become the property of Landlord and may be removed from the Premises and
sold or disposed of by Landlord in such manner as it deems advisable without any accounting to Tenant.
5.6 Liens. Tenant shall promptly pay for all materials supplied and work done in respect of the
Premises by, through, or under Tenant so as to ensure that no lien is recorded against any portion of the Retail
Space or against Landlord's or Tenant's interest therein. If a lien is so recorded, Tenant shall discharge it
promptly by payment or bonding. If any such lien against the Retail Space or Landlord's interest therein is
recorded and not discharged by Tenant as above required within fifteen (15) days following written notice to
Tenant, Landlord shall have the right to remove such lien by bonding or payment and the cost thereof shall be
paid immediately from Tenant to Landlord. Landlord and Tenant expressly agree and acknowledge that no
interest of Landlord in the Premises or the Retail Space shall be subject to any lien for improvements made by
Tenant in or for the Premises, and Landlord shall not be liable for any lien for any improvements made by Tenant,
such liability being expressly prohibited by the terms of this Lease. In accordance with applicable laws of the
State of Florida, Landlord has filed in the public records of Dade County, Florida, a public notice containing a true
and correct copy of this paragraph, and Tenant hereby agrees to inform all contractors and material suppliers
performing work in or for or supplying materials to the Premises of the existence of said notice.
5.7 Utilities. Tenant shall pay to Landlord, or as Landlord directs, all gas, electricity, water, and other
utility charges, applicable to the Premises as separately metered. Additionally, if at Landlord's discretion,
Landlord provides waste collection services inclusive of recycling and any additional services deemed necessary
by Landlord to maintain the trash room for the Retail Space, Tenant shall pay its proportionate share of said
service(s).Tenant shall, at its own cost, install, maintain and repair, as required, its electrical meter for the
Premises. In addition, Tenant's electrical equipment and lighting shall be restricted to that equipment and lighting
which individually does not have a rated capacity and/or design load greater than the rated capacity and/or design
load of the Retail Space. If Tenant's consumption of electrical services exceeds either the rated capacity and/or
design load of the Retail Space, then Tenant shall remove the equipment and/or lighting to achieve compliance
within ten (10)days after receiving written notice from Landlord, or such equipment and/or lighting may remain in
the Premises, so long as(a)Tenant shall pay for all costs of installation and maintenance of submeters, wiring,
air-conditioning, and other items required by Landlord, in Landlord's reasonable discretion, to accommodate
Tenant's excess design loads and capacities; and (b)Tenant shall pay to Landlord, within thirty(30)days after
rendition of a bill, the cost of the excess consumption of electrical service at the rates charged to Landlord by
Florida Power& Light, which shall be in accordance with any applicable laws.
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ARTICLE VI. INSURANCE AND INDEMNITY.
6.1 Tenant's Insurance. Tenant shall, throughout the Term (and any other period when T is s in
possession of the Premises), maintain at its sole cost the following insurance:
(A) All risks property insurance, containing a waiver of subrogation rights which Tenant's
insurers may have against Landlord and against those for whom Landlord is in law responsible including, without
limitation, its directors, officers, agents, and employees, and (except with respect to Tenant's chattels)
incorporating a standard New York mortgagee endorsement (without contribution). Such insurance shall insure
property of every kind owned by Tenant in an amount not less than the full replacement cost thereof(new), with
such cost to be adjusted no less than annually. Such policy shall include as additional insureds Landlord and its
affiliates and any mortgagee of Landlord, the City, and any mortgagee of the Landlord in connection with a mortgage
on the Facility.
(B) Comprehensive general liability insurance. Such policy shall contain inclusive limits per
occurrence of not less than the amount specified in the Lease Summary; provide for severability of interests; and
include as additional insureds Landlord and its affiliates and any mortgagee of Landlord, the City, and any
mortgagee of Landlord in connection with a mortgage on the Facility.
(C) Worker's compensation and employer's liability insurance in compliance with applicable
legal requirements.
(D) Business interruption insurance, sufficient to'insure Tenant for no less than one(1) full
year of loss of business,with the Landlord named thereon as loss payee to the extent permitted by applicable law.
(E) Any other form of insurance which Tenant or Landlord, acting reasonably, requires from
time to time in form, in amounts, and for risks against which a prudent tenant would insure, but in any event not
less than that carried by comparable retail establishments in Dade County, Florida.
All policies referred to above shall: (i) be taken out with insurers licensed to do business in
Florida and reasonably acceptable to Landlord; (ii) be in a form reasonably satisfactory to Landlord; (iii) be
non-contributing with, and shall apply only as primary and not as excess to any other insurance available to
Landlord or any mortgagee of Landlord; (iv)contain an undertaking by the insurers to notify Landlord by certified
mail not less than thirty(30)days prior to any material change, cancellation, or termination, and (v)with respect to
subsection (A), contain replacement cost, demolition cost, and increased cost of construction endorsements.
Certificates of insurance on Landlord's standard form or, if required by a mortgagee, copies of such insurance
policies certified by an authorized officer of Tenant's insurer as being complete and current, shall be delivered to
Landlord promptly upon request. If Tenant fails to take out or to keep in force any insurance referred to in this
section 6.1, or should any such insurance not be approved by either Landlord or any mortgagee, and Tenant does
not commence and continue to diligently cure such default within two (2) business days after written notice by
Landlord to Tenant specifying the nature of such default, then Landlord has the right, without assuming any
obligation in connection therewith, to effect such insurance at the sole cost of Tenant and all outlays by Landlord
shall be paid by Tenant to Landlord as additional rent without prejudice to any other rights or remedies of Landlord
under this Lease. Tenant shall not keep or use in the Premises any article which may be prohibited by any fire or
casualty insurance policy in force from time to time covering the Premises or the Retail Space.
6.2 Loss or Damage. Tenant acknowledges that the Landlord will be performing any maintenance
and repairs required of Landlord hereunder. Landlord shall not be liable for any death or injury arising from or out
of any occurrence in, upon, at, or relating to the Retail Space or damage to property of Tenant or of others located
on the Premises or elsewhere in the Retail Space, nor shall it be responsible for any loss of or damage to any
property of Tenant or others from any cause, unless such death, injury, loss, or damage results from the gross
negligence or willful misconduct of Landlord. Without limiting the generality of the foregoing, Landlord shall not be
liable for any injury or damage to persons or property resulting from fire, explosion, falling plaster, falling ceiling
tile, falling fixtures, steam, gas, electricity, water, rain, flood, or leaks from any part of the Premises or from the
pipes, sprinklers, appliances, plumbing works, roof, windows, or subsurface of any floor or ceiling of the Retail
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Space or from the street or any other place or by dampness, or by any other cause whatsoever, unless resulting
from the gross negligence or willful misconduct of Landlord. Tenant agrees to indemnify Landlord and hold it
harmless from and against any and all loss (including loss of Minimum Rent and additional rent payable in respect
to the Premises), claims, actions, damages, liability, and expense of any kind whatsoever (including attorneys'
fees and costs at all tribunal levels), unless caused by the gross negligence or willful misconduct of Landlord,
arising from any occurrence in, upon, or at the Premises, or the occupancy, use, or improvement by Tenant or its
agents or invitees of the Premises or any part thereof, or occasioned wholly or in part by any act or omission of
Tenant its agents, employees, and invitees or by anyone permitted to be on the Premises by Tenant.
6.3 Waiver of Subrogation. Landlord and Tenant each hereby waives on behalf of itself and its
insurers (none of which shall ever be assigned any such claim or be entitled thereto due to subrogation or
otherwise)any and all rights of recovery, claim, action, or cause of action, against the other, its agents, officers, or
employees, for any loss or damage that may occur to the Premises, or any improvements thereto or the Retail
Space, or any improvements thereto, or any personal property of such party therein, by reason of fire, the
elements, or any other causes which are, or could or should be insured against under the terms of the standard
fire and extended coverage insurance policies referred to in this Lease, regardless of whether such insurance is
actually maintained and regardless of the cause or origin of the damage involved, including negligence of the
other party hereto, its agents, officers, or employees. Landlord and Tenant shall each obtain from their respective
insurers, under all policies of fire, theft, public liability, worker's compensation, and other insurance maintained by
either of them at any time during the term hereof insuring or covering the Retail Space or any portion thereof or
operations therein, a waiver of all rights of subrogation which the insurer of one party might have against the other
party.
6.4 Indemnification.Tenant shall indemnify and hold harmless the Landlord and the City of Miami Beach, and
their respective officers, employees, agents and instrumentalities (collectively "Indemnitees") from any and all
liability, losses or damages, including attorneys' fees and costs of defense, which Indemnitees may incur as a
result of claims, demands, suits, causes of actions or proceedings of any kind or nature arising out of, relating to
or resulting from the performance of this Lease by the Tenant or its employees, agents, servants, partners
principals or subcontractors, or relating to or resulting from the operation of Tenant's business at the Premises.
Tenant shall pay all claims and losses in connection therewith and shall investigate and defend all claims, suits or
actions of any kind or nature in the name of any of the Indemnitees, where applicable, including appellate
proceedings, and shall pay all costs, judgments, and attorney's fees which may issue thereon. Tenant expressly
understands and agrees that any insurance protection required by this Lease or otherwise provided by Tenant
shall in no way limit the responsibility to indemnify, keep and hold harmless and defend Indemnitees as herein
provided.
ARTICLE VII. DAMAGE AND DESTRUCTION.
7.1 Damage to Premises. Tenant acknowledges that if the Premises are partially or totally destroyed
due to fire or other casualty, any repairs to the Facility of the damaged portions of the Retail Space will be performed
by Landlord and in any event only to the extent that Landlord is required to repair or rebuild the Retail Space. If
Landlord repairs or rebuilds, Minimum Rent shall abate proportionately to the portion of the Premises, if any,
rendered untenantable from the date of destruction or damage until the repairs have been substantially
completed. Upon being notified that the repairs have been substantially completed, Tenant shall diligently
perform all other work required to fully restore the Premises for use in Tenant's business, in every case at
Tenant's cost and without any contribution to such cost by Landlord, whether or not Landlord has at any time
made any contribution to the cost of supply, installation, or construction of leasehold improvements in the
Premises. Tenant agrees that during any period of reconstruction or repair of the Premises, it will continue the
operation of its business within the Premises to the extent practicable. If all or any part of the Premises shall be
damaged by fire or other casualty and the fire or other casualty is caused by the fault or neglect of Tenant or
Tenant's agents, guest, or invitees, rent and all other charges shall not abate.
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7.2 Termination for Damage. Notwithstanding section 7.1, if damage or destruction which has occurred to
the Premises or the Retail Space is such that in the reasonable opinion of Landlord such reconstruction or repair
cannot be completed within one hundred twenty(120) days of the happening of the damage or destruction.
Landlord may, at their option, terminate this Lease on notice to Tenant given within thirty(30) days after such
damage or destruction and Tenant shall immediately deliver vacant possession of the Premises in accordance
with the terms of this Lease.
In addition, if Landlord undertakes the reconstruction or repair, and does not complete same within
nine (9) months after the date of the fire or other casualty (subject to the time required to prepare plans for
reconstruction, to obtain Facility permits, to receive distribution of insurance proceeds, and to complete the likely
contract bidding process and all other relevant factors, but not to exceed an additional ninety(90) days), then
Tenant shall have the right to terminate this Lease by written notice to Landlord delivered within thirty(30) days
after the expiration of such nine(9) month period (or as extended), whereupon both parties shall be relieved of all
further obligations hereunder, except as otherwise expressly set forth herein.
ARTICLE VIII. ASSIGNMENT, LEASES, AND TRANSFERS.
8.1 Transfer by Tenant. Tenant shall not enter into, consent to, or permit any Transfer, as hereinafter
defined, without the prior written consent of Landlord in each instance, which consent may be granted or withheld
in Landlord's sole and absolute discretion for any reason or for no reason. For purposes of this Lease, "Transfer"
means an assignment of this Lease in whole or in part; the execution of a management agreement relating to all
or any part of the Premises; a sublease of all or any part of the Premises; any transaction whereby the rights of
Tenant under this Lease or to the Premises are transferred to another; any mortgage or encumbrance of this
Lease or the Premises or any part thereof or other arrangement under which either this Lease or the Premises
become security for any indebtedness or other obligations; and if Tenant is a corporation or a partnership, the
transfer of a controlling interest in the stock of the corporation or partnership interests, as applicable. If there is a
permitted Transfer, Landlord may collect rent or other payments from the transferee and apply the net amount
collected to the rent or other payments required to be paid pursuant to this Lease but no acceptance by Landlord
of any payments by a transferee shall be deemed a waiver of any provisions hereof regarding Tenant.
Notwithstanding any Transfer, Tenant shall not be released from any of its obligations under this Lease.
Landlord's consent to any Transfer shall be subject to the further condition that if the Minimum Rent and additional
rent pursuant to such Transfer exceeds the Minimum Rent and additional rent payable under this Lease, the
amount of such excess shall be paid to Landlord. If, pursuant to a permitted Transfer, Tenant receives from the
transferee, either directly or indirectly, any consideration other than Minimum Rent and additional rent for such
Transfer, either in the form of cash, goods, or services, Tenant shall, upon receipt thereof, pay to Landlord an
amount equivalent to such consideration.
ARTICLE IX. DEFAULT.
9.1 Defaults. A default by Tenant shall be deemed to have occurred hereunder, if and whenever:
(i)any Minimum Rent is not paid when due whether or not any notice or demand for payment has been made by
Landlord; (ii)any other additional rent is in arrears and is not paid within five(5) days after written demand by
Landlord; (iii)Tenant has breached any of its obligations in this Lease (other than the payment of rent)and Tenant
fails to remedy such breach within thirty(30) days (or such shorter period as may be provided in this Lease), or if
such breach cannot reasonably be remedied within thirty(30) days (or such shorter period), then if Tenant fails to
immediately commence to remedy and thereafter proceed diligently to remedy such breach, in each case after
notice in writing from Landlord; (iv)Tenant becomes bankrupt or insolvent; (v)any of Landlord's policies of
insurance with respect to the Retail Space are canceled or adversely changed as a result of Tenant's use or
occupancy of the Premises; or (vi)the business operated by Tenant in the Premises shall be closed by
governmental or court order for any reason.
9.2 • Remedies. In the event of any default hereunder by Tenant, then without prejudice to any other
rights which it has pursuant to this Lease or at law or in equity, Landlord shall have the following rights and
remedies, which are cumulative and not alternative:
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(A) Landlord may cancel this Lease by notice to Tenant and retake possession of the
Premises for Landlord's account, or may terminate Tenant's right to possession of the Premises without
terminating this Lease. In either event, Tenant shall then quit and surrender the Premises to Landlord. If
Landlord terminates Tenant's right to possession of the Premises without terminating this Lease, Tenant's liability
under all of the provisions of this Lease shall continue notwithstanding any expiration and surrender, or any
re-entry, repossession, or disposition hereunder.
(B) Landlord may enter the Premises as agent of Tenant to take possession of any property
of Tenant on the Premises, to s tore such property at the expense and risk of Tenant or to sell or otherwise
dispose of such property in such manner as Landlord may see fit without notice to Tenant. Re-entry and removal
may be effectuated by summary dispossess proceedings, by any suitable action or proceeding, or otherwise.
Landlord shall not be liable in any way in connection with its actions pursuant to this section, to the extent that its
actions are in accordance with law.
(C) If Landlord terminates Tenant's right to possession of the Premises without terminating
this Lease under subsection (A) above, Tenant shall remain liable (in addition to accrued liabilities) to the extent
legally permissible for all rent and all of the charges Tenant would have been required to pay until the date this
Lease would have expired had such cancellation not occurred. Tenant's liability for rent shall continue
notwithstanding re-entry or repossession of the Premises by Landlord. In addition to the foregoing, Tenant shall
pay to Landlord such sums as the court which has jurisdiction thereover may adjudge as reasonable attorneys'
fees with respect to any successful lawsuit or action instituted by Landlord to enforce the provisions of this Lease.
(D) Landlord may relet all or any part of the Premises for all or any part of the unexpired
portion of the Term of this Lease or for any longer period, and may accept any rent then attainable; grant any
concessions of rent, and agree to paint or make any special repairs, alterations, and decorations for any new
tenant as it may deem advisable in its sole and absolute discretion. Landlord shall be under no obligation to relet
or to attempt to relet the Premises, except as expressly set forth below.
(E) If Landlord terminates Tenant's right to possession of the Premises without terminating
this Lease under subsection (A) above, and Landlord so elects, the rent hereunder shall be accelerated and
Tenant shall pay Landlord damages in the amount of any and all sums which would have been due for the
remainder of the Term (reduced to present value using a discount factor equal to the stated prime lending rate on
the date of Tenant's default by Landlord's then existing mortgagee or, if there is no mortgagee, by Citibank, N.A.,
New York). Prior to or following payment in full by Tenant of such discounted sum promptly upon demand,
Landlord shall use good faith efforts to relet the Premises. If Landlord receives consideration as a result of a
reletting of the Premises relating to the same time period for which Tenant has paid accelerated rent, such
consideration actually received by Landlord, less any and all of Landlord 's cost of repairs, alterations, additions,
redecorating, and other expenses in connection with such reletting of the Premises, shall be a credit against such
discounted sum, and such discounted sum shall be reduced if not yet paid by Tenant as called for herein, or if
Tenant has paid such discounted sum, such credited amount shall be repaid to Tenant by Landlord (provided said
credit shall not exceed the accelerated amount).
(F) Landlord may remedy or attempt to remedy any default of Tenant under this Lease for the
account of Tenant and to enter upon the Premises for such purposes. No notice of Landlord's intention to perform
such covenants need be given Tenant unless expressly required by this Lease. Landlord shall not be liable to
Tenant for any loss or damage caused by the reasonable acts of Landlord in remedying or attempting to remedy
such default and Tenant shall pay to Landlord all expenses incurred by Landlord in connection with remedying or
attempting to remedy such default. Any expenses incurred by Landlord shall accrue interest from the date of
payment by Landlord until repaid by Tenant at the highest rate permitted by law.
9.3 Costs. Tenant shall pay to Landlord on demand all costs incurred by Landlord, including attorneys'
fees and costs at all tribunal levels, incurred by Landlord in enforcing any of the obligations of Tenant under this
Lease. In addition, upon any default by Tenant, Tenant shall be also liable to Landlord for the expenses to which
Landlord may be put in re-entering the Premises; repossessing the Premises; painting, altering, or dividing the
Premises; combining the Premises with an adjacent space for any new tenant; putting the Premises in proper
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repair; protecting and preserving the Premises by placing watchmen and caretakers therein; reletting the
Premises (including attorneys' fees and disbursements, marshall's fees, and brokerage fees, in so doing); and
any other expenses reasonably incurred by Landlord.
9.4 Additional Remedies; Waiver. The rights and remedies of Landlord set forth herein shall be in
addition to any other right and remedy now and hereinafter provided by law. All rights and remedies shall be
cumulative and non-exclusive of each other. No delay or omission by Landlord in exercising a right or remedy
shall exhaust or impair the same or constitute a waiver of, or acquiescence to, a default.
9.5 Default by Landlord. In the event of any default by Landlord, Tenant's exclusive remedy shall be
an action for damages or injunction, but prior to any such action Tenant will give Landlord written notice specifying
such default with particularity, and Landlord shall have a period of thirty(30)days following the date of such notice
in which to cure such default (provided, however, that if such default reasonably requires more than thirty(30)
days to cure, Landlord shall have a reasonable time to cure such default, provided Landlord commences to cure
within such thirty(30) day period and thereafter diligently prosecutes such cure to completion). Notwithstanding
any provision of this Lease, Landlord shall not at any time have any personal liability under this Lease. In the
event of any breach or default by Landlord of any term or provision of this Lease, Tenant agrees to look solely to
the equity or interest then-owned by Landlord in the Retail Space, and in no event shall any deficiency judgment
be sought or obtained against Landlord. It is expressly understood that the obligations of Landlord under this
Lease are solely corporate obligations, and that, except for conversion, fraud, or willful misconduct, no personal
liability will attach to, or is or shall be incurred by, the incorporators, stockholders, officers, directors, or
employees, as such, of the Landlord, or of any successor corporation, or any of them, under or by reason of the
obligations, covenants, or agreements of Landlord contained in this Lease or implied therefrom; and, except for
conversion, fraud, or willful misconduct, that any and all such personal liability, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims against, every such incorporator,
stockholder, officer, director, or employee, as such, or under or by reason of the obligations, covenants or
agreements contained in this Lease or implied therefrom are expressly waived and released as a condition of,
and as a consideration for, the execution of this Lease.
ARTICLE X. ESTOPPEL CERTIFICATE; SUBORDINATION.
10.1 Estoppel Certificate. Within ten (10)days after written request by Landlord,Tenant shall deliver in
a form supplied by Landlord, an estoppel certificate to Landlord as to the status of this Lease, including whether
this Lease is unmodified and in full force and effect (or, if there have been modifications, that this Lease is in full
force and effect as modified and identifying the modification agreements); the amount of Minimum Rent and
additional rent then being paid and the dates to which same have been paid; whether or not there is any existing
or alleged default by either party with respect to which a notice of default has been served, or any facts exist
which, with the passing of time or giving of notice, would constitute a default and, if there is any such default or
facts, specifying the nature and extent thereof; and any other matters pertaining to this Lease as to which
Landlord shall request such certificate. Landlord, and any prospective purchaser, lender, or ground lessor shall
have the right to rely on such certificate.
10.2 Subordination; Attornment. This Lease and all rights of Tenant shall be subject and subordinate
to any and all mortgages, security agreements, or like instruments resulting from any financing, refinancing, or
collateral financing (including renewals or extensions thereof), and to any and all ground leases, made or
arranged by Landlord of its interests in all or any part of the Retail Space, from time to time in existence against
the Retail Space, whether now existing or hereafter created. Such subordination shall not require any further
instrument to evidence such subordination. However, on request, Tenant shall further evidence its agreement to
subordinate this Lease and its rights under this Lease to any and all documents and to all advances made under
such documents. The form of such subordination shall be made as required by Landlord, its lender, ground
lessor, the City. Tenant shall, if requested by Landlord, or a mortgagee, owner, or purchaser, or by any person
succeeding to the interest of such mortgagee, owner, or purchaser, as the result of the enforcement of the
remedies provided by law or the applicable instrument held by Landlord, such mortgagee, owner, or purchaser,
automatically attorn to and become the tenant of Landlord or any such mortgagee, owner, purchaser, or
successor-in-interest, without any change in the terms or other provisions of this Lease; provided, however, that
Landlord, said mortgagee, owner, purchaser, or successor shall not be bound by (a)any payment of rent or
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additional rent for more than one(1) month in advance, or(b)any security deposit or the like not actually received
by Landlord, such mortgagee, owner, or purchaser, or successor, or (c)any amendment or modification in this
Lease made without the consent of Landlord, such mortgagee, owner, purchaser, or successor, or (d)any
construction obligation, free rent, or other concession or monetary allowance, or (e)any set-off, counterclaim, or
the like otherwise available against Landlord, or (f)any act or omission of any prior landlord (including Landlord).
Upon request by Landlord, said mortgagee, owner, or purchaser, or successor, Tenant shall execute and deliver
an instrument or instruments confirming its attornment.
Notwithstanding the foregoing, any such subordination of this Lease shall be conditioned on the Landlord
obtaining a nondisturbance agreement in favor of Tenant from all mortgagees and ground lessors regarding any
financings or over leases entered into by Landlord with respect to the Retail Space, and no subordination shall be
effective without a corresponding nondisturbance agreement.
ARTICLE XI. CONTROL OF RETAIL SPACE BY LANDLORD.
11.1 Use and Maintenance of Common Areas. Tenant and those doing business with Tenant for
purposes associated with Tenant's business on the Premises, shall have a non-exclusive license to use the
common areas for their intended purposes during normal business hours in common with others entitled thereto
and subject to any rules and regulations imposed by Landlord. Landlord shall use reasonable efforts to keep the
common areas in good repair and condition and shall clean the common areas when necessary. Tenant
acknowledges that any common areas of the Retail Space shall at all times be under the exclusive control and
management of Landlord. For purposes of this Lease, "common areas" shall mean those areas, facilities, utilities,
improvements, equipment, and installations of the Retail Space which serve or are for the benefit of tenants of
more than one component of the Retail Space and which are not designated or intended by Landlord to be leased,
from time to time, or which are provided or designated from time to time by Landlord and/or the City for the benefit
or use of all tenants in the Retail Space, their employees, customers, and invitees, in common with others entitled
to the use or benefit of same. Tenant acknowledges that the Garage portion of the Facility is not a part of the
Retail Space, and that Tenant has no right or license to use the Garage pursuant to this Lease. Any use by
Tenant or its invitees of the Garage is subject to the rules and regulations in connection therewith imposed by
Landlord (or successor owner) and/or the operator of the Garage. No portion of the garage is under Landlord's
control or supervision, and Landlord shall not be liable for any damage to automobiles of any nature whatsoever
to, or any theft of, automobiles or other vehicles or the contents thereof, while in or about the Garage.
Additionally, Tenant acknowledges that although the Garage has.800 available parking spaces, the Garage is
subject to the following Garage Easement Agreements: 1. Lowe's Hotel Garage Easement Agreement, dated as
of September 20, 1996 ("Lowe's Garage Easement Agreement"), recorded in Official Records Book 17362, at
Page 130, of the Public Records of Miami-Dade County, Florida; and 2. The Garage Easement Agreement
between RDP Royal Palm Hotel Limited partnership and Miami Beach Redevelopment Agency, dated as of May
28, 1998 and recorded in O.R. Book 18170, Page 1082, of the Public Records of Miami-Dade County, Florida.
These Garage Easement Agreements, if exercised simultaneously by both Grantees, to the fullest extent
possible, have the effect of reducing the available parking spaces at the Garage for use by the general public
(including monthly and daily parking users)from 800 to approximately 66 spaces.
11.2 Alterations by Landlord. Landlord and/or the City may (but shall not be obligated to) (i)alter, add
to, subtract from, construct improvements on, re-arrange, and construct additional facilities in, adjoining, or
proximate to the Retail Space; (ii) relocate the facilities and improvements in or comprising the Retail Space or
erected on the Land; (iii)do such things on or in the Retail Space as required to comply with any laws, by-laws,
regulations, orders, or directives affecting the Land or any part of the Retail Space; and (iv)do such other things
on or in the Retail Space as Landlord and/or the City, in the use of good business judgment determines to be
advisable, provided that notwithstanding anything contained in this section 11.2, access to the Premises shall be
available at all times. Landlord shall not be in breach of its covenants for quiet enjoyment or liable for any loss,
costs, or damages, whether direct or indirect, incurred by Tenant due to any of the foregoing; provided, Landlord
shall exercise its rights under this section in a manner so as to minimize any disruption or interference with the
operation of Tenant's business and property.
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11.3 Tenant Relocation. Landlord shall have the right, at any time upon sixty(60) days' written notice
to Tenant, to relocate Tenant into other space within the Retail Space comparable to the Premises. Upon such
relocation, such new space shall be deemed the Premises and the prior space originally demised shall in all
respects be released from the effect of this Lease. If Landlord elects to relocate Tenant as above described,
(i)the new space shall contain approximately the same as, or greater usable area than the original space,
(ii) Landlord shall improve the new space, at Landlord's sole cost, to at least the standards of the original space,
(iii) Landlord shall pay the reasonable costs of moving Tenant 's trade fixtures and furnishings from the original
space to the new space, (iv)as total compensation for all other costs, expenses, and damages which Tenant may
suffer in connection with the relocation, including but not limited to, lost profit or business interruption, no
Minimum Rent shall be due or payable for the first two (2)full calendar months of Tenant's occupancy of the new
space, and Landlord shall not be liable for any further indirect or special expenses of Tenant resulting from the
relocation, (v) Minimum Rent and all other charges hereunder shall be the same for the new space as for the
original space, notwithstanding that the new space may be larger than the original space, and (vi)all other terms
of this Lease shall apply to the new space as the Premises, except as otherwise provided in this paragraph.
ARTICLE XII. CONDEMNATION.
12.1 Total or Partial Taking. If the whole of the Premises, or such portion thereof as will make the
Premises unusable for the purposes leased hereunder, shall be taken by any public authority under the power of
eminent domain or sold to public authority under threat or in lieu of such taking, the Term shall cease as of the
day possession or title shall be taken by such public authority, whichever is earlier ("Taking Date"), whereupon
the rent and all other charges shall be paid up to the Taking Date with a proportionate refund by Landlord of any
rent and all other charges paid for a period subsequent to the Taking Date. If less than the whole of the
Premises, or less than such portion thereof as will make the Premises unusable for the purposes leased
hereunder, the Term shall cease only as to the part so taken as of the Taking Date, and Tenant shall pay rent and
other charges up to the Taking Date, with appropriate credit by Landlord (toward the next installment of rent due
from Tenant) of any rent or charges paid for a period subsequent to the Taking Date. Minimum Rent and other
charges payable to Landlord shall be reduced in proportion to the amount of the Premises taken.
12.2 Award. All compensation awarded or paid upon a total or partial taking of the Premises or Retail
Space including the value of the leasehold estate created hereby shall belong to and be the property of Landlord
without any participation by Tenant; Tenant shall have no claim to any such award based on Tenant's leasehold
interest. However, nothing contained herein shall be construed to preclude Tenant, at its cost, from
independently prosecuting any claim directly against the condemning authority in such condemnation proceeding
for damage to, or cost of removal of, stock, trade fixtures, furniture, and other personal property belonging to
Tenant and for Tenant's moving expenses; provided, however, that no such claim shall diminish or otherwise
adversely affect Landlord's award or the award of any mortgagee.
ARTICLE XIII. PROMOTION.
13.1 Promotional Fund; Merchants'Association. Intentionally Omitted.
ARTICLE XIV. GENERAL PROVISIONS.
14.1 Delay. Whenever a period of time is herein prescribed for the taking of any action by Landlord or
Tenant, as applicable, Landlord or Tenant, as applicable, shall not be liable or responsible for, and there shall be
excluded from the computation of such period of time, any delays due to strikes, riots, acts of God, shortages of
labor or materials, war, or governmental laws, regulations, or restrictions in the nature of a prohibition or
moratorium, or any bona fide delay beyond the reasonable control of Landlord or Tenant, as applicable. The
foregoing shall not apply to any payments of money due under this Lease.
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14.2 Holding Over. If Tenant remains in possession of the Premises after the end of the Term without
having executed and delivered a new lease or an agreement extending the Term, there shall be no tacit renewal
of this Lease or the Term, and Tenant shall be deemed to be occupying the Premises as a Tenant from month to
month at a monthly Minimum Rent payable in advance on the first day of each month equal to twice the monthly
amount of Minimum Rent payable during the last month of the Term, and otherwise upon the same terms as are
set forth in this Lease, so far as they are applicable to a monthly tenancy.
14.3 Waiver; Partial Invalidity. If Landlord excuses or condones any default by Tenant of any
obligation under this Lease, this shall not be a waiver of such obligation in respect of any continuing or
subsequent default and no such waiver shall be implied. All of the provisions of this Lease are to be construed as
covenants even though not expressed as such. If any provision of this Lease is held or rendered illegal or
unenforceable it shall be considered separate and severable from this Lease and the remaining provisions of this
Lease shall remain in force and bind the parties as though the illegal or unenforceable provision had never been
included in this Lease.
14.4 Recording. Neither Tenant nor anyone claiming under Tenant shall record this Lease or any
memorandum hereof in any public records,without the prior written consent of Landlord.
14.5 Notices. Any notice, consent, or other instrument required or permitted to be given under this
Lease shall be in writing and shall be delivered in person, or sent by certified mail, return receipt requested, or
overnight express mail courier, postage prepaid, addressed (i) if to Landlord, at the address set forth in the Lease
Summary; and (ii) if to Tenant, at the Premises or, prior to Tenant 's occupancy of the Premises, at the address
set forth on the Lease Summary. Any such notice or other instruments shall be deemed to have been given and
received on the day upon which personal delivery is made or, if mailed, then forty-eight(48) hours following the
date of mailing. Either party may give notice to the other of any change of address and after the giving of such
notice, the address therein specified is deemed to be the address of such party for the giving of notices. If postal
service is interrupted or substantially delayed, all notices or other instruments shall be delivered in person or by
overnight express mail courier.
14.6 Successors; Joint and Several Liability. The rights and liabilities created by this Lease extend to
and bind the successors and assigns of Landlord and the heirs, executors, administrators, and permitted
successors and assigns of Tenant. No rights, however, shall inure to the benefit of any transferee unless such
Transfer complies with the provisions of Article VIII. If there is at any time more than one Tenant or more than
one person constituting Tenant, their covenants shall be considered to be joint and several and shall apply to
each and every one of them.
14.7 Captions and Section Numbers. The captions, section numbers, article numbers, and table of
contents appearing in this Lease are inserted only as a matter of convenience and in no way affect the substance
of this Lease.
14.8 Extended Meanings. The words "hereof," "hereto," "hereunder," and similar expressions used in
this Lease relate to the whole of this Lease and not only to the provisions in which such expressions appear. This
Lease shall be read with all changes in number and gender as may be appropriate or required by the context.
Any reference to Tenant includes, when the context allows, the employees, agents, invitees, and licensees of
Tenant and all others over whom Tenant might reasonably be expected to exercise control. This Lease has been
fully reviewed and negotiated by each party and their counsel and shall not be more strictly construed against
either party.
14.9 Entire Agreement; Governing Law; Time. This Lease and the Exhibits and Riders, if any,
attached hereto are incorporated herein and set forth the entire agreement between Landlord and Tenant
concerning the Premises and there are no other agreements or understandings between them. This Lease and
its Exhibits and Riders may not be modified except by agreement in writing executed by Landlord and Tenant.
The Executive Director of the Miami Beach Redevelopment Agency shall have the authority to execute
modifications to the Lease, on, behalf of the Landlord. This Lease shall be construed in accordance with and
governed by the laws of the State of Florida. Time is of the essence of this Lease.
16
14.10 No Partnership. The parties hereby acknowledge that it is not their intention under this Lease to
create between themselves a partnership, joint venture, tenancy-in-common, joint tenancy, co-ownership, or
agency relationship. Accordingly, notwithstanding any expressions or provisions contained herein, nothing in this
Lease, whether based on the calculation of rental or otherwise, shall be construed or deemed to create, or to
express an intent to create, a partnership, joint venture, tenancy-in-common, joint tenancy, co-ownership or
agency relationship of any kind or nature whatsoever between the parties hereto. The provisions of this section
shall survive expiration of the Term.
14.11 Quiet Enjoyment. If Tenant pays rent and other charges and fully observes and performs all of its
obligations under this Lease, Tenant shall be entitled to peaceful and quiet enjoyment of the Premises for the
Term without interruption or interference by Landlord or any person claiming through Landlord.
14.12 Brokerage. Landlord and Tenant each represent and warrant one to the other that except as set
forth in the Lease Summary, neither of them has employed any broker in connection with the negotiations of the
terms of this Lease or the execution thereof. Landlord and Tenant hereby agree to indemnify and to hold each
other harmless against any loss, expense, or liability with respect to any claims for commissions or brokerage
fees arising from or out of any breach of the foregoing representation and warranty. Landlord recognizes the
broker(s) specified in the Lease Summary as the sole broker(s) with whom Landlord has dealt in this transaction
and agrees to pay any commissions determined to be due said broker(s).
14.13 Radon Notice. Chapter 88-285, Laws of Florida, requires the following notice to be provided with
respect to the contract for sale and purchase of any Facility, or a rental agreement for any Facility:
"RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a Facility
in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that
exceed federal and state guidelines have been found in Facilities in Florida. Additional information regarding
radon and radon testing may be obtained from your county public health unit.
14.14 Execution. This Lease has been submitted for discussion purposes only and shall not be
deemed an offer by either party to the other to enter into this Lease unless and until this Lease shall have been
executed by both parties, indicating their acceptance of the terms and conditions contained herein.
14.15 TRIAL BY JURY. LANDLORD AND TENANT,EACH HEREBY WAIVES ITS RIGHT TO A JURY
TRIAL OF ANY ISSUE OR CONTROVERSY ARISING UNDER THIS LEASE.
17
EXECUTED as of the day and year first above written.
WITNESSES: LANDLORD:
MIAMI BEACH REDEVELOPMENT AGENCY, a public
body corporate and politic
By:
Rafael E. Granado, Secretary Philip Levine, Chairperson
WITNESS
Date:
Print Name:
TENANT:
ARTCONNECTION INTERNATIONAL, INC.
WITNESS
By:
Name:
Title:
Print Name:
WITNESS
Date:
Print Name:
APPROVED AS TO
FORM & LANGUAGE
& F R ECUTION
41, 91---Urr
ati �5
City Attorney :;,0-r Date
18
EXHIBIT"A"
Legal Description
Lots 8, 9, 10, 11, 12 and 13, Block 57, Fisher's First Subdivision of Alton Beach, according to the Plat thereof, as
recorded in Plat Book 2, Page 77 of the Public Records of Dade County, Florida, together with all of 16th Street
(Avenue"C"), less and except the following described parcel:
BEGINNING at the Southwest corner of Block 54 of said Fisher's First Subdivision of Alton Beach Plat; thence
North 88° 0' 53" East along the South line of said Block 54, a distance of 443.08 feet, to the Southeast corner of
said Block 54; thence South 07° 35' 04" West, a distance of 96.26 feet, to a point of cusp with a tangent curve
concave to the Southwest; thence along the arc of said curve to the left, having a radius of 25.00 feet and a
central angel of 90° 00' 00", an arc distance of 39.27 feet, to a point of tangency; thence North 82° 24' 52"West, a
distance of 24.75 feet; thence South 88° 00' 53" West along a line 8.00 feet North of and parallel with, as
measured at right angles to the North line of Block 57 of said plat, a distance of 382.18 feet to a point on the
Easterly Right-of-Way line of Washington Avenue; thence North 01° 59' 11" West along said Easterly
Right-of-Way line, a distance of 62.00 feet to the Southwest corner of said Block 54 and the Point of beginning.
Said lands lying and being in the City of Miami Beach and containing 65,910 square feet (1.5131 Acres) more or
less.
Exhibit A Art Connection Lease Agreement(Final)8-25-2015.docx
EXHIBIT"B"
Site Plan of Retail Space and Location of Premises
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EXHIBIT"C"
RULES AND REGULATIONS
1. Security. Landlord may from time to time adopt appropriate systems and procedures for the
security or safety of the Retail Space, any persons occupying, using, or entering the same, or any equipment,
furnishings, or contents thereof, and Tenant shall comply with Landlord's reasonable requirements relative
thereto.
2. Return of Keys. At the end of the Term, Tenant shall promptly return to Landlord all keys for the
Retail Space and Premises which are in the possession of Tenant. In the event any Tenant fails to return keys,
Landlord may retain$100.00 of Tenant's security deposit for locksmith work and administration.
3. Repair, Maintenance, Alterations, and Improvements. Tenant shall carry out Tenant's repair,
maintenance, alterations, and improvements in the Premises only during times agreed to in advance by Landlord
and in a manner which will not interfere with the rights of other Tenant's in the Retail Space.
4. Water Fixtures. Tenant shall not use water fixtures for any purpose for which they are not
intended, nor shall water be wasted by tampering with such fixtures. Any cost or damage resulting from such
misuse by Tenant shall be paid for by Tenant.
5. Personal Use of Premises. The Premises shall not be used or permitted to be used for
residential, lodging, or sleeping purposes or for the storage of personal effects or property not required for
business purposes.
6. Heavy Articles. Tenant shall not place in or move about the Premises without Landlord's prior
written consent any safe or other heavy article which in Landlord's reasonable opinion may damage the Premises,
and Landlord may designate the location of any such heavy articles in the Premises.
7. Bicycles, Animals. Tenant shall not bring any animals or birds into the Retail Space, and shall not
permit bicycles or other vehicles inside or on the sidewalks outside the Retail Space except in areas designated
from time to time by Landlord for such purposes.
8. Deliveries. Tenant shall ensure that deliveries of supplies,fixtures, equipment, furnishings, wares,
and merchandise to the Premises are made through such entrances, elevators, and corridors and at such times
as may from time to time be designated by Landlord, and shall promptly pay or cause to be paid to Landlord the
cost of repairing any damage in the Retail Space caused by any person making improper deliveries.
9. Solicitations. Landlord reserves the right to restrict or prohibit canvassing, soliciting, or peddling in
the Retail Space.
10. Food and Beverages. Only persons approved from time to time by Landlord may prepare, solicit
orders for, sell, serve, or distribute foods or beverages in the Retail Space, or use the common areas for any such
purpose. Except with Landlord's prior written consent and in accordance with arrangements approved by
Landlord, Tenant shall not permit on the Premises the use of equipment for dispensing food or beverages or for
the preparation, solicitation of orders for, sale, serving, or distribution of food or beverages.
11. Refuse. Tenant shall place all refuse in proper receptacles provided by Tenant at its expense in
the Premises or in receptacles (if any) provided by Landlord for the Retail Space, and shall keep sidewalks and
driveways outside the Retail Space, and lobbies, corridors, stairwells, ducts, and shafts of the Retail Space, free
of all refuse.
1.2. . Obstructions. Tenant shall not obstruct or place anything in or on the sidewalks or driveways
outside the Retail Space or in the lobbies, corridors, stairwells, or other common areas, or use such locations for
any purpose except access to and exit from the Premises without Landlord's prior written consent. Landlord may
remove at Tenant's expense any such obstruction or thing caused or placed by Tenant (and unauthorized by
Landlord)without notice or obligation to Tenant.
13. Proper Conduct. Tenant shall not conduct itself in any manner which is inconsistent with the
character of the Retail Space as a first quality retail center or which will impair the comfort and convenience of
other Tenant's in the Retail Space.
14. Employees, Aqents, and Invitees. In these Rules and Regulations, "Tenant" includes the
employees, agents, invitees, and licensees of Tenant and others permitted by Tenant to use or occupy the
Premises.
15. Pest Control. In order to maintain satisfactory and uniform pest control throughout the Retail
Space, Tenant shall engage for its own Premises and at its sole cost, a qualified pest extermination contractor
either designated or approved by Landlord, who shall perform pest control and extermination services in the
Premises at such intervals as reasonably required or as may be directed by Landlord.
EXHIBIT"D"
Prohibited Uses
1) In no event may the primary business at the Premises engage in the sale of food, alcoholic and non-
alcoholic beverage items.
2) In no event may the primary business at the Premises be the sale of clothing for men, women and juniors,
resort wear, souvenirs, and designer shoes.
3) In no event may the primary business at the Premises engage in the sale of swimwear, beach attire or
related beach apparel accessories.
4) In no event may the primary business at the Premises be used to display and sell athletic footwear,
apparel, and athletic apparel accessories.
ase Draft-2015T:wGENDA\2015\September\TCED\Unit 6 Art Connection Lease RDA\Exhibit A Art Connection Lease Agreement(Final)8-25-2015.docx
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