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Third Amendment to Management Agreement
12...E 2_©!6- 29 -JL5 THIRD AMENDMENT TO MANAGEMENT AGREEMENT THIS THIRD AMENDMENT TO MANAGEMENT AGREEMENT ("Third Amendment") is made and entered into this C day of A7 , 2016 ("Effective Date"), by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws of the State of Florida, and having its principal office at City Hall, 1700 Convention Center Drive, Miami Beach, Florida 33139 (the "City"), and LIVE NATION WORLDWIDE, INC., a Delaware corporation, whose address is 9348 Civic Center Drive, Beverly Hills, California 90210 ("Live Nation"), with reference to the following. RECITALS A. City and Live Nation are parties to that certain Management Agreement, dated June 22, 2007 (as the same may be amended, the "Management Agreement"), pursuant to which Live Nation acts as the City' s agent with respect to the management and operation of The Jackie Gleason Theater located at 1700 Washington Ave., Miami Beach, Florida 33139 (the "Facility"), in accordance with the terms therein. The Management Agreement has been amended twice: on or about December 9, 2009„ and on or about April 13, 2011. Legible copies of the Management Agreement, together with all amendments thereto, are attached to this Third Amendment as Exhibit "A" and made a part hereof. B. The City of Miarni Beach is pursuing the development of a Convention Headquarter Hotel adjacent to the Miami Beach Convention Center ("Hotel Project") and certain other related off-site improvements. At a future date, City may elect to remove from the Management Agreement that certain portion of the Facility, which portion consists of the area marked on Exhibit "B" attached hereto and made a part hereof (hereinafter, the "Rehearsal Room") and Live Nation is willing to surrender the Rehearsal Room, on the terms and conditions of this Third Amendment. C. In consideration of Live Nation's agreements set forth herein, and to induce Live Nation to enter this Third Amendment, City desires to agree to certain financial and operational adjustments related to Live Nation's operation of the Facility, all as more fully set forth in this Third Amendment. NOW THEREFORE, in consideration of the premises, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by both parties, City and Live Nation agree as follows. 1. Recitals; Section Headings; Defined Terms. The "Recitals" paragraphs above are deemed to be part of the agreement of the parties hereto. The paragraph headings of this Third Amendment are for convenience and reference only and none of such headings shall limit or amplify the meaning, application or construction of any of the provisions of this Third Amendment. Unless specifically defined in this Third Amendment, any capitalized terms used in this Third Amendment shall have the meanings ascribed to such terms in the Management Agreement. 1 2. Recapture of Rehearsal Room. (a) City may, upon delivery to Live Nation of at least sixty (60) days' prior written notice ("Recapture Notice"), recapture possession of the Rehearsal Room, as of 5:00 p.m. Eastern Time on any date designated by City set forth in such Recapture Notice ("Recapture Date"). Not later than the Recapture Date, Live Nation shall surrender possession of the Rehearsal Room to City in substantially the same condition it is in as of the Effective Date of this Third Amendment, reasonable wear and tear and damage caused by casualty excepted. Upon such surrender, City shall accept possession of the Rehearsal Room and the Rehearsal Room shall be deemed removed from the definition of "Facility" for all purposes. (b) The decision by City whether or not to recapture the Rehearsal Room shall be in City's sole and absolute discretion. (c) Upon Live Nation's receipt of the Recapture Notice, Live Nation may incur capital improvement costs in order to reconfigure/alter portions of the Facility other than the Rehearsal Room, in Live Nation's discretion, to accommodate catering operations. Upon Live Nation's completion thereof, Live Nation shall be entitled to credit its out-of-pocket costs incurred in connection therewith from any amounts payable by Live Nation to City pursuant to the Management Agreement, not to exceed Fifty Thousand Dollars ($50,000.00). (d) Upon Live Nation's surrender of the Rehearsal Room, City shall be solely responsible for taxes, insurance, maintenance expenses, and operating costs with respect to the Rehearsal Room, including, but not limited to, security. 3. Adjustments to Required City Distribution. (a) The third paragraph from the end of Section 3.2 of the Management Agreement (which paragraph begins with "The Required City Distribution...") is hereby deleted and replaced in its entirety with the following: The Required City Distribution amount for the first Fiscal Year of the First Renewal Term shall equal the greater of either (a) $1,222,51.2.00 or (b) $1,000,000.00 increased by the percentage increase between the CPI published for June 2007 and the CPI published for June 2017. (For illustration purposes, if such percentage increase in CPI is 23%, then the Required City Distribution amount for the first Fiscal Year of the First Renewal Term would be $1,230,000.00.) Beginning January 1, 2019, and on each January 1 thereafter during the First Renewal Term, the Required City Distribution amount shall be increased by a fixed amount equal to two percent (2%) of the amount of the Required City Distribution in effect for the preceding Fiscal Year. (b) As of the Recapture Date, Live Nation shall receive a credit toward sums payable by Live Nation to City pursuant to the Management Agreement in the amount of 2 $250,000 for each full Fiscal Year then remaining in the Term, and pro -rated for any partial Fiscal Year, plus all full and (pro -rated) partial Fiscal Years during any extension option exercised by Live Nation. For the avoidance of doubt, such credit shall be in the sum of $250,000 with respect to the full Fiscal Year in which the Recapture Date occurs and also with respect to each full Fiscal Year thereafter, and pro -rated for any partial Fiscal Year. Accordingly, if the Recapture Date occurs at any time during a given Fiscal Year after Live Nation has already paid the full amount of the Required City Distribution for such Fiscal Year, then the City will refund to Live Nation the appropriate credit amount due pursuant to this Section 3(b). 4. Chilled Water Costs. As part of Live Nation's operational responsibilities pursuant to the Management Agreement, Live Nation incurs certain costs related to chilled water at the Facility. Retroactive to January 1, 2016, and continuing thereafter throughout the Term of the Management Agreement and all extensions thereof, Live Nation shall receive a credit for such chilled water costs in the fixed annual amount of $165,000. The credit for chilled water costs shall be applied by City as follows: City will refund to Live Nation $165,000 with respect to calendar year 2016 chilled water charges, in the form of a credit toward the calendar year 2016 Required City Distribution; then, for chilled water charges incurred with respect to each calendar year following 2016, City shall, at the City's discretion, but with prior written notice to Live Nation, either cause the applicable agency to which Live Nation pays for chilled water to waive the appropriate $165,000 of chilled water charges with respect to the Facility, or the City may pay for such chilled water costs directly and on Live Nation's behalf, or the City may allow Live Nation to offset $165,000 against the Required City Distribution. If the Term expires or is terminated prior to such credits being applied (pro -rated for any partial calendar year), City and Live Nation shall reconcile such amounts promptly, whereupon City shall promptly pay to Live Nation any then -remaining amount of such credit earned prior to the effective date of termination. 5. Event Ticket Surcharges and Community Benefit Fund. Subparagraph (g) of Section 2.4 of the Management Agreement is hereby amended to add an additional twelve (12) Facility rental waivers in connection with live theater productions, in accordance with the City's Resolution No. 2014-28732 attached as Exhibit "C" hereto. From and after the Effective Date hereof, Live Nation shall have the right (to be exercised in Live Nation's sole discretion) to create a capital improvement/repair reserve fund designated for capital improvements and/or repairs to the Facility ("Facility Reserve Fund"). For the avoidance of doubt, Live Nation may impose ticket surcharges, other than the surcharge for the Community Benefit Fund, to raise such funds for the Facility Reserve Fund (or it may obtain such funds from other sources), but the funds dedicated to the Facility Reserve Fund shall be separate from any ticket surcharges that are required to be deposited into the Community Benefit Fund. No funds required to be deposited into the Community Benefit Fund shall be diverted to the Facility Reserve Fund. Live Nation may use any funds in the Facility Reserve Fund for any ordinary and necessary repairs to the Facility, and, with City's reasonable approval, any capital improvements to the Facility. Upon the expiration or earlier termination of the Term of the Management Agreement, the then - remaining balance of the Facility Reserve Fund shall be released to City, net of amounts which are then -payable by City to Live Nation (if any). 6. Suspension of Complimentary Tickets. Subparagraph (d) of Section 2.4 of 3 the Management Agreement is hereby deleted in its entirety, and, accordingly, the Complimentary Tickets perquisite set forth in such subparagraph (d) shall be deemed terminated as of the Effective Date of this Third Amendment. 7. Hours of Alcohol Service. Section 2.1 (b) of the Management Agreement is hereby amended to permit alcohol beverage sales and service until 2 a.m. in connection with any Event at the Facility, including, but not limited to, New Year's and Winter Music Conference. Consistent with Amendment No. 2 to the Management Agreement, the Facility shall close to the public no later than 3:00 a.m.; accordingly, all patrons within the Facility shall also leave the Facility by 3:00 a.m. 8. Bottle Service. From and after the Effective Date hereof, and in connection with any Events at the Facility, Live Nation may cause "bottle service" to be offered to Facility patrons provided, however that there shall be no alcoholic beverage service (including, without limitation, bottle service) after 2:00 a.m., and the Facility shall be closed to the public no later than 3:00 a.m. As used herein, "bottle service" shall be deemed to mean the lawful sale and service of liquor by the bottle. The purchase of bottle service typically includes a reserved table for the patron's party and mixers of the patron's choice. Bottle service can include the service of a VIP host. 9. DJ/EDM Programming. From and after the Effective Date hereof, there shall be no operating hours restriction in connection with Electronic Dance Music (EDM) Events and DJ -headlined Events at the Facility other than any restrictions set forth in the City Code, and provided, however that there shall be no alcoholic beverage service (including, without limitation, bottle service) after 2:00 a.m., and the Facility shall be closed to the public no later than 3:00 a.m. 10. Valet Parking Charges. From and after the Effective Date hereof, Live Nation shall have the right to pre -sell and/or package valet parking with Facility admission ticket sales. The price for such valet parking services shall be $20 per vehicle, of which $5 may be retained by Live Nation and $15 will be distributed to City or City's contracted valet parking operator, as designated by City. In the event the City Commission, in its sole and absolute discretion, elects to increase the price for valet parking services, the City shall notify Live Nation and Live Nation will be entitled to increase the valet parking fee to such authorized price and to retain an amount equal to 25% of the gross selling price thereof. 11. Convention Center Headquarter Hotel Development. (a) Live Nation hereby acknowledges that a portion of the Facility and the surrounding area may undergo construction, including demolition of the Rehearsal Room, reconfiguration of the Facility's loading docks, demolition of the 555 17th Street building and construction of the Hotel Project in the area bounded roughly by Convention Center Drive to the East, the Facility to the West, 17th Street to the South, and the Convention Center to the North. Live Nation further acknowledges that all such construction might be undertaken by City and/or by a third -party, and that the City might not be in privity of contract with any of the construction 4 contractors for the Hotel Project, and accordingly might not have any control or responsibility for the contractors or the schedule or performance of the construction of the Hotel Project. (Whether or not the Hotel Project is developed by City or by a third party, such Hotel Project developer is referred to herein as the "Hotel Developer") (b) If at any time during the Term of the Management Agreement, or any extension thereof, City authorizes the Hotel Project to be constructed, the City will provide Live Nation with regular monthly updates with regard to Hotel Developer's progress with respect to identifying financing for the Hotel Project, development of the design documentation for the Hotel Project and the design documentation for the demolition of the Rehearsal Room and/or any re-construction/restoration of the Facility and its loading dock areas (the "Facility Improvements"), as well as the anticipated schedule for obtaining all required regulatory approvals and permitting for the Facility Improvements and the Hotel Project. (c) Prior to City's approval, in its proprietary capacity, of plans for the Facility Improvements (the "Plans"), City shall provide legible copies of the Plans to Live Nation for its input. Live Nation's input may include comments with respect to potential impacts on the functionality or operability of the Facility as an entertainment venue and performing arts center, provided, however, that Live Nation acknowledges and agrees that the Plans contemplate and will provide for a smaller footprint for the Facility and its loading dock and surrounding areas, substantially as shown on Exhibit "B". As part of City's approval of the Plans, in its proprietary capacity, City shall not provide its approval of the Plans unless the City Manager is reasonably satisfied that the Plans will provide for a functional Facility that is operable for its intended purposes as an entertainment venue and performing arts center, consistent with Live Nation's operations at the Facility (excluding the Rehearsal Room) and consistent with the provisions of this Third Amendment. Any comments to such plans that Live Nation may reasonably have shall be transmitted to City's designated Hotel Project Representative (initially, Jeff Sachs) for the City Manager's review and consideration. (d) Further, City shall not approve the Plans unless such Plans, at a minimum, provide for the Facility edge impacted by any recapture and/or demolition of the Rehearsal Room, to be re-constructed/restored to an architectural whole with finishes and structural components that are reasonably compatible with the finishes and quality existing at the Facility prior to the demolition. (e) City shall not permit any demolition or re-construction/restoration of the Facility Improvements until such time as the City Manager has approved, following input from Live Nation: (1) a schedule for the construction of the Facility Improvements that takes into account Live Nation's planned schedule of events, performances and operations at the Facility, and (2) a process for updating such schedule, as may be reasonably required from time to time (whether such updates involve Live Nation's operations or the general contractor's progress with construction). Such schedule will, to the extent possible, identify dates, if any, where significant construction activity is expected to occur that may preclude the scheduling of any performances at the Facility. (f) At all times during the construction of the Hotel Project and at all times during the 5 Facility Improvements, the City shall require Hotel Developer, and its contractor(s) (and any subcontractors of either of them), to cause no Material Disruption (as defined in Section 11(i) below) to Live Nation's operations, including, but not limited to, any performance or event at the Facility, and as necessary, the City shall enforce the applicable provisions of any agreements in connection therewith. (g) City shall provide Live Nation with thirty (30) days advance written notice of commencement of construction of the Facility Improvements and the Hotel Project. Subject to the terms of this Third Amendment, City reserves the right to stop service of the HVAC, electric, sanitary, elevator (if any), or other systems or utilities serving the Facility, or to stop any other services required by City under the Management Agreement, as amended, whenever and for so long as may be necessary to detach any such services from the Rehearsal Room (upon recapture thereof in accordance with this Third Amendment) and/or to install such services to the Hotel Project; provided, however, the day -of timing of any and all such service interruptions shall be coordinated by City with an on-site representative of Live Nation (initially, the Facility general manager) so as to minimize the impact of such service interruptions upon the Facility operations. Notwithstanding anything to the contrary, City shall not permit any such planned service interruptions to be scheduled to occur (or actually to occur) for two hours prior to, during, and for two hours following any performance or publicized event within the Facility, in accordance with the schedule pursuant to Section 11(e) herein. (h) Live Nation acknowledges that during the Hotel Project there may be times where normal construction activities may create normal construction noise, normal construction vibration, normal construction dust, or other normal construction -related environmental impacts that may be observable to Live Nation in the course of its operation of the Facility. Live Nation further acknowledges that the construction of the Hotel Project may require modifications to Live Nation's operations from time to time, such as changes involving the entry, egress, loading, and circulation spaces in and around the Facility that may include, but may not be limited to the creation of temporary partitions/passages within or around portions of the Facility that may occur within or adjacent to areas of active construction, the relocation of entry or exiting doors, the reconfiguration of specific loading docks, parking and other temporary adjustments to the movement of people and freight through the Facility. During the construction of the Hotel Project, matters requiring modifications to Live Nation's operations at the Facility shall be coordinated and planned, with reasonable input from Live Nation and with the assistance, as necessary, of City's Hotel Project Representative. Live Nation acknowledges that the conditions identified in this Section 11(h) are an anticipated element of the use of the Facility during the Hotel Project construction and, as such do not constitute a "Material Disruption" of the operations of the Facility such that closure of the Facility is required pursuant to Section 11(i). (i) A "Material Disruption" of the operation of the Facility shall mean any construction activity of City, Hotel Developer and/or contractors related to the Hotel Project that either (A) results in a cancellation or relocation (in either instance, out of necessity) of an Event, or Run (as such terms are defined in the Management Agreement), or (B), for a continuous period of not less than twenty-four (24) hours, either (1) renders the Facility inaccessible or precludes the safe ingress/egress therefrom such that a regulatory agency having jurisdiction would require closure of the Facility, (2) renders the Facility uninhabitable or unfit for use, or (3) causes the cessation 6 of utilities at the Facility. Live Nation shall have the right, in its reasonable discretion, to close the Facility during any period when day-to-day venue operations actually experience, or are reasonably anticipated to experience, a Material Disruption. Live Nation shall provide written notice to the City of such Material Disruption within twenty-four (24) hours of its occurrence, with a brief explanation of the events giving rise thereto, to permit City the opportunity to verify whether City and/or Hotel Developer and/or the Hotel Project contractors were the cause of the Material Disruption. (j) If City verifies that Live Nation is required to close the Facility on one or more occasions due to Material Disruptions caused by City and/or Hotel Developer and/or the Hotel Project contractors, then Live Nation shall receive a credit against amounts payable by Live Nation to City pursuant to the Management Agreement equal to the sum of all of the following: (1) a pro -rated per -diem amount of the then -applicable Required City Distribution for the duration of all such Facility closure(s), plus (2) a pro -rated per -diem amount of all other fixed costs incurred by Live Nation to operate the Facility (net of the chilled water credit set forth above in Section 4 of this Third Amendment), including, but not limited to, the salaries of all full time and part time personnel, plus (3) any and all out-of-pocket expenses incurred by Live Nation in connection with the cancellation of any and all Events, including, but not limited to, talent guarantees, marketing costs and costs related to personnel who are paid on an Event -by - Event hourly basis. (k) City shall cause each of the Hotel Developer and the general contractor for the Facility Improvements to provide Live Nation with a certificate of insurance naming Live Nation as an "additional insured" on its liability insurance policy(ies), for all work involving the Facility Improvements. 12. Facility Certification. In accordance with the Miami -Dade County Code ("Code"), the Facility was due for certification, or re -certification, by the "Building Official" (as defined in the Code) prior to the commencement of the Management Agreement. At City's sole cost and expense, City shall, within 180 days after the Effective Date of this Third Amendment, satisfy the requirements of the Code with regard to the certification, or re -certification, of the Facility. City and Live Nation shall meet and confer in good faith within sixty (60) days after the City completes the Facility inspection required in connection with such certification (or re- certification, as applicable), Any Facility conditions which date back to prior to the commencement of the Term of the Management Agreement shall be solely City's responsibility and expense to repair in order to pass certification in accordance with the Code. Responsibility for any Facility conditions which date back a date which was on or following the commencement of the Term of the Management Agreement shall be determined in accordance with the obligations set forth in the Management Agreement with respect to Facility maintenance and repair. 13. Notice of Violation. The City is in receipt of a violation concerning certain Facility conditions that pre -dated the Management Agreement Term. A copy of the notice pertaining to such violation is attached hereto as Exhibit "D" and made a part hereof. Any and all costs and expenses related to the remediation of Facility conditions referenced in such notice shall be the sole responsibility of City. 7 14. Notice Address for Live Nation. The address for purposes of receipt of notices by Live Nation set forth in Section 15.7 of the Management Agreement is hereby amended to be as follows. To Live Nation: Live Nation Worldwide, Inc. 7060 Hollywood Blvd. Los Angeles, California 90028 Attn: Michael Grozier With copy to: Live Nation Worldwide, Inc. 7060 Hollywood Blvd. Los Angeles, California 90028 Attn: Sheila Small, Chief Counsel [remainder of page intentionally blank] 8 15. Entire Amendment. This Third Amendment sets forth the entire agreement of the parties with respect to the subject matter hereof All prior or contemporaneous understandings and discussions, whether written or verbal, are entirely superseded by this Third Amendment. Except as amended by the express provisions of this Third Amendment, the terms and conditions of the Management Agreement remain in full force and effect. IN WITNESS WHEREOF, this Third Amendment has been duly executed by the parties hereto as of the Effective Date first above written. [signatures continue on next page] CITY OF MIAMI BEACH, r A., a municipal corporation oft � ;, of Florida By: Philip %eve°' 'ayor ATTEST By: afae. Granado, City ']erk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION: By:2 , Or J 2.3 City Attorney 9 LIVE NATION WORLDWIDE, INC., a Delaware corporation By: Print Nank: Kathy Vylil���l Its: EVP and Chiof Financial Officer ATTEST: By: Print Name: Rc l6 . ' l " P ► Its: C c\.ntnt-ek 10 EXHIBIT "A" COPY OF MANAGEMENT AGREEMENT AND ALL AMENDMENTS THERETO (ATTACHED) 11 020//- 76 ((Q AMENDMENT NO.2 TO THE .AGR EMBNT BETWEEN THE CITY OF MIAMi BEACH AND LIVE NATION WORLDWIDE, INC. DATED JUNE 22, 2007, FOR THE JACKIE GLEASt N THEATER OF THE EI FORMINt3 ARTS (THE AGREEMENT) This Amendment No. 2 to the Agreement, is made and entered into, this „ day of , 2011, by And between the CITY OF MIAMI BEACH, FLORIDA, a municipal oorporatiin having its principal office at 170 Convention Center Drive, Miami Beath, Florida, 33139 ("City"); and LIVE NATION W,O LOWID , INC, a 'Delaware oorporatian whose address is 9348 Civic Center Drive, Beverly Hills, California 90210 ("Live Nation"), ,ftEc. ITALS WHEREAS, on June 22, 2007, the City entered into an Agreement with Live Nation Worldwide, Inc. (Live Nation) to rnaage the Jackie Gleason Theater of the Performing Arts (now named and known as the F"lllmore Miami Beach at the Jackie Gleason Theater) (the Venue), with an initial term of ten (10) years, commencing on June 22, 2007, and ending on August 31, 2017 (the Agreement), and VVHii Ri AB,'Section 2.1(b) of the Agreement restrlots Live Nation from serving food or beverages after midnight; and WHEREAS, Live Nation requested an amendment to the aforestated food and beverage restriction, as there were a number of potential events it was unable to book (due to this restriction); and WHEREAS, on December 9, (2009, the Clty Commission adopted Resolution No. 2009- 27278, approving Amendment No.. if to the Agreamment, which permitted Live Nation to extend hours of operation and liquor sales a the Venue for a trial period (12 rnonths), subject to certain conditions; and WHEREAS, the trial period? expired on December 31, 2010, arfd Live Nation has requested that it be extended; and WHEREAS, the Administration recommends that the City Ccmmisston now approve Amendment No. 2 to the Agreerne tt, which would continue to permit Live Nation to extend hours of operation and liquor sales at the Venue, subject to the conditlona below, and would further authorize the City Manager Ito administratively approve such requests in the future; again, subject to the following oonditibns. 1. Any sale, distribution, Isnd or service of food and beverages, including alcohol, at the Venue shall cease; at no later than 2:00 AM, 2. The Venue will be ole sed to the public ne later than 8.00 AM; accordingly, ail patrons within the Venue should also leave by 3:00 AM. 3. No DJ -only performances shall be allowed for the extended hours, 4. Live Nation shall provide the City Manager or his/her authorized 'designee with a written status report following each event in which permission to serve alcohol after midnight has been granted. 1 {0946-T458.00018995.DQC - } NOW, THEREFORE, in consideration of the mutual premises, covenants and agreements herein contained, and other good and valuable consideration, in receipt and adequacy of which are hereby acknowledged and intending to be legally bound, the City and Live Nation hereby amend the Agreement as follows: 1. The aforestated recitals are true and correct and incorporated by reference herein. 2. Section 2.1(b) of the Agreement, entitled "Engagement," is amended as follows: (b) Menaoer of the Facility, Live Nation accepts the engagement and agrees to operate, manage, maintain, promote and market the facility in a manner consistent with other similar first class facilities o'pera'ted by Live Nation and its Affiliates as of the Commencement Date. Subject to the terms of this Agreement, Live Nation shall be, as agent for the City, the sole and exclusive rnanager of the City to operate, manager, maintain, promote and market the Facility during the term. In such capacity, except as otherwise expressly reserved under this Agreement to the City and/or except for such matters as are subject to the to the approval of the City or the City Manager, Live Nation shall have exclusive authority over the management and operation of the Facility and all activities therein; provided, however, the Facility shall be used only as a live entertainment venue and public auditorium or any combination thereof, and for such ancillary uses asare customarily related to such primary use, including, without limitation, broadcasting, recording, filming, private parties or functions, bar (including alcoholic beverages) and food concessions (arid including :preparation of food), in each case in conjunction with an Event or rental function then being held, and sale of merchandise related to any Event then being held. Other uses may be allowed only with the prior written approval of the City Manager. Without limiting the generality of the foregoing, in no event shall food and beveragesjncluding alcohol, be sold, distributed, or served after midnight (12:00 AM) and in no event shall bottle service be offered for alcohol, nor beverages, including alcoholic beverages, be sold in bottles. Bottle service is herein defined as the ability for patrons to purchase entire bottles of liquor for personal consumption, Notwithstanding the preceding, and yibiect,to to�ripr Writtengoroyal of the C i ]an mor . hi +oroval Of piypn 2I,t alll s-aq be at the �i�y nager's sole and absolute discretion,. w - . Live Nation rrav be •ernritte to sell, distribute, and/or serve food and beverages, including alcohol, at the Venue to the following conditions: 1. Any sale, distribution, and or service of food and beverages, including alcohol, at the Venue shall cease at no later than 2:00 AM. 2. The Venue will be Closed to the public no later than 3:00 AM; accordingly, all patrons within the venue should also leave by 3:00 AM. 3. No DJ -only performances shall be allowed for extended hours. 4. Live Nation shall provide the City Manager or his/her authorized designee with a written p ogresee status report followjna each event in whicr remission to serve aaco)-rol after m'idnigh .has been irantedha 1-perie (0946.168.00018995 DOC - ) Live Nation must provide the City Manager or his/her authorized representative with at least fifteen (15) days prior written notice, prior to any (and each) event in which Live Nation Intends to extend the hours of sale, distribution, or service of any food and beverages, including alcohol, past midnight;\ provided. however, ti)at in no event shall, peiiez _ .. Live Nation be.perrrnitted to ehaii-+let sell distribute, or serve any food or beverages, including alcohol, after midnight during New Year's Eve (December 318) and during Winter Music Conference (generally, the last week of March); these Events will not count toward the required annual number of events, as specificed in Section 2.2 (b), The parties further acknowledge that the permission granted under the aforestated trial period may be revoked at any time by the City Manager, with or without cause and at his/her sole option end discretion, upon thirty (3) days prior written notice to Live Nation; provided, however, that Live Nation ehal be allowed to proceed with any events booked by Live Nation prior to the date of termination (which entail the sale, distribution or service of any food or beverages, including alcohol, past midnight), The City's termination of the trial period shall not result in any liability to the City. 3, No Further ypdificoion ; Except as provided in this Amendment No, 1, the Agreement remains unmodified and in full force and effect. (REMAINDER OF T $ PA c E LIFT INTENTIONALLY BLANK] (0946168.00018995 DOC - } „IIIb, if,I .'niiI .I,1111!!.I„,. IN ITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written. KIT sr t i)(kkek, lark y CITY OF MIAMI BEAC1I, F ORIDA 0 day of LA\ ,2011 W INC. Print Na 14' day o TAAG NDA)2011\4.13.11tive Notion Arneldnient No 2 -After HoursPINAUDOC {0946468-00018995.1500 ) StIONIOMME11010114103, . 111 !L p 2011. APPROVED AS TO FORM & NGUAGE & � CUTION Oq AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND LIVE NATION WORLDWIDE, INC., DATED JUNE 22, 2007, FOR THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS (THE AGREEMENT) This Amendment No. 1 to the Agreement, is made and entered into this ' day of fl , 2009, by and between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City"), and LIVE NATION WORLDWIDE, INC, a Delaware corporation whose address is 9348 Civic Center Drive, Beverly Hills, California 90210 ("Live Nation"). RECITALS WHEREAS, on June 22, 2007, the City entered into an Agreement with Live Nation Worldwide, Inc. (Live Nation) to manage the Jackie Gleason Theater of the Performing Arts, now named and known as the Fillmore Miami Beach at the Jackie Gleason Theater (the Venue), with an initial term of ten (10) years, commencing on June 22, 2007, and ending on August 31, 2017 (the "Agreement"), and WHEREAS, Section 2.1(b) of the Agreement restricts Live Nation from serving food or beverages at the Venue after midnight; and WHEREAS, Live Nation has requested an amendment to the aforestated food and beverage restriction as there are a number of potential events it has been unable to book (due to this restriction); and WHEREAS, on December 16, 2008, the City's Finance Committee discussed Live Nation's request, and recommended approval of a trial period; where Live Nation would be permitted to extend hours of operation and liquor sales at the Venue, subject to certain conditions; and WHEREAS, at its meeting on December 9, 2009, the City Commission considered the Finance Committee's recommendation and recommended that the City approve an Amendment to the Agreement permitting Live Nation to extend hours of operation and liquor sales at the Venue for a trial period, subject to the following conditions: 1. Any sale, distribution, and or service of food and beverages, including alcohol, at the Venue shall cease at no later than 2:00 AM. 2. The Venue will be closed to the public no later than 3:00 AM; accordingly, all patrons within the Venue should also leave by 3:00 AM. 3. No DJ performances shall be allowed, 4. Live Nation shall provide the City Manager or his/her authorized designee with a written progress report halfway through the trial period, or July 1, 2010. NOW, THEREFORE, in consideration of the mutual premises, covenants and agreements herein contained, and other good and valuable consideration, in receipt and adequacy of which are hereby acknowledged and intending to be legally bound, the City and Live Nation hereby amend the Agreement as follows: 1. The aforestated recitals are true and correct and incorporated by reference herein. {0946-168.00018995.DOC-. } Page 1 follows: 2. Section 2.1(b) of the Agreement, entitled "Engagement," is amended as (b) Manager of the Facility_ Live Nation accepts the engagement and agrees to operate, manage, maintain, promote and market the Facility in a manner consistent with other similar first class facilities operated by Live Nation and its Affiliates as of the Commencement Date. Subject to the terms of this Agreement, Live Nation shall be, as agent for the City, the sole and exclusive manager of the City to operate, manager, maintain, promote and market the Facility during the term. In such capacity, except as otherwise expressly reserved under this Agreement to the City and/or except for such matters as are subject to the to the approval of the City or the City Manager, Live Nation shall have exclusive authority over the management and operation of the Facility and all activities therein; provided, however, the Facility shall be used only as a live entertainment venue and public auditorium or any combination thereof, and for such ancillary uses as are customarily related to such primary use, including, without limitation, broadcasting, recording, filming, private parties or functions, bar (including alcoholic beverages) and food concessions (and including preparation of food), in each case in conjunction with an Event or rental function then being held, and sale of merchandise related to any Event then being held. Other uses may be allowed only with the prior written approval of the City Manager. Without limiting the generality of the foregoing, in no event shall food and beverages. including alcohol, be sold, distributed, or served after midnight (12:00 AM) and in no event shall aleehelis bottle service be offered for alcohol. nor beverages, includina alcoholic beverages, be sold in bottles, Bottle service is herein defined as the ability for patrons to purchase entire bottles of liquor for personal consumption. Notwithstanding the preceding. the City shall allow Live Nation to sell. distribute. and/or serve food and beveraaes. includina alcohol. at the Venue for a limited twelve (12) month "trial period." commencina on January 1. 2010. and automatically sunsettina and terminating on December 31. 2010 (without any further action to effectuate such termination reauired by the City). subiect to the following conditions: 1. Any sate. distribution. and or service of food and beveraaes. includina alcohol. at the Venue shall cease at no later than 2:00 AM. 2. The Venue will be closed to the public no later than 3:00 AM: accordingly, all patrons within the venue should also leave by 3:00 AM. 3, No DJ performances shall be allowed. 4. Live Nation shall provide the City Manaaer or his/her authorized desianee with a written progress report halfway throuah the trial period. or July 1. 2010. Live Nation must provide the City Manaaer or his/her authorized representative with at least fifteen (15) days prior written notice. prior to any (and each) event in which Live Nation intends to extend the hours of sale. distribution. or service of any food and beveraaes. includina alcohol. past midniaht. Notwithstandina the aforestated trial period. or any other term or condition of the Aareement. Live Nation shall not sell distribute. or serve any food or beveraaes. includina alcohol, after midniaht durina New Year's Eve (December 31st) and during Winter Music Conference (aenerally. the last week of March): these Events will not count toward the required annual number of events. as specificed in Section 2.2 (b). The parties further acknowledae that the permission aranted under the aforestated trial period may be revoked at any time by the City Manaaer. with or without cause and at his/her sole option and discretion, upon thirty (3) days prior written notice to Live Nation: provided. however. that Live Nation shal be allowed to proceed with any events booked by Live Nation prior to the {0946-168-00018995.DOC - } Page 2 date of termination (which entail the sale. distribution or service of anv food or beverages, including alcohol, past midniaht). The City's termination of the trial period shall not result in anv liability to the City. 3. EXHIBIT "H" (LICENSE AGREEMENT) is amended as follows: Section 14 D. Umbrella Liability Insurance at not less than $24,000,000.00 limit providing excess coverage over all limits and coverages noted in paragraph B and C above. This policy shall be written on an occurance basis. 4. EXHIBIT "H-1" (LICENSE AGREEMENT) is amended as follows: Section 14 D. Umbrella Liability Insurance at not less than $24,000,000.00 limit providing excess coverage over all limits and coverages noted in paragraph B and C above. This policy shall be written on an occurance basis. 5. No Further Modifications. Except as provided in this Amendment No. 1, the Agreement remains unmodified and in full force and effect. [REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK (0946.168.00018995.DOC - Page 3 IN WITNESS WHEREOF. this Agreement has been duly executed by the parties hereto as of the day and year first above written, A I T ;,t11(11 City Llern" ATTEST Sec' re tar y CITY OF MIAMI BE H, F ORIDA May f day of Pt aotile K. 2009. 1<r11R1 IA) I UI Print Name day of Natcn Amendment No 1- After Hours.a0C Page 4 , 2009. APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION (1A(3C\ Date MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND LIVE NATION WORLDWIDE, INC. FOR THE ,TACHE GLEASON THEATER OF THE PERFORMING ARTS TABLE OF CONTENTS Page Definitions , , . , ......, ..... 2 .Engagement of Live Nation; Scope of Services 5 2 1 Engagement 2.2 Scope of Services .. 5 2.3 Specific Services , ,. ..... .. 7 2.4 City and Charitable Use of'Facility and Ticket Programs .. - .,10 2.5 Rights Reserved to City .16 3. Term and Renewal Term.,, 3,1 Term „„......„ ,„. .,..., 18 3 2 Renewal Option, , . . ,,., ., ,. 18 3 3 Live Nation's Early Termination .., 19 4. Live Nation's Compensation; City Distributions.,.... . .., 20 4.1 Management Fee , „ . 20 4.2 Required City Distribution ...... „ ,. .... 20 4.3 Excess City Distribution „ , „ ,. . 21 5 Funding; Budgets; Bank Accounts; Alterations ... , .... 22 5 1 Live Nation Funding Guaranty .... „ „ ...... ... ... 22 5 2 Non -Funding by City ,. 5.3 Receipts and Disbursements . , , . ,. 23 5.4 Alterations , „ „ .,, „ . 23 6 Records, Audits and Reports . ............. ....,.. 25 6 1 Records and Audits .. . .. ... ............. . ....... ..... 25 6 2 Annual Plan.............., ...... 26 7. Employees „ ,. „ ,, ..... ......... • ., . , 26 7.1 Live Nation Employees „ ,, ,,,, ,, ,,, ,,, . ., 26 7.2 No Solicitation or Employment by City ..., 27 8 Indemnification and Insurance ..... .. ., . 27 8 1 Indenmifioation ., ., .... ..., 27 8 2 Liability Insurance .. ..... ... ..... .....,, .., 27 8,3 Worker's Compensation Insurance . „ .. „ .. . .......... 28 8.4 Property Insurance ......., ... 28 8.5 General Requirements ... . .. .... ........... ., ,. ,., .. 29 8.6 Certain Other Insurance . 29 9 Ownership of'Assets 9.1 Ownership , 9.2 City Obligations .. ,, .. . , 30 10 Assignment; Affiliates ... , .. , 30 10.1 Assignment .............. ......... . 30 10 2 Live Nation Affiliates ............ „ „ , 32 (i) TABLE OF CONTENTS (continued) Page 11. Laws and Permits . 11.1 Permits, Licenses, Taxes and Liens .. .., .., „ .., ..... 33 11.2 Governmental Compliance ........, 11 ..3 No Discrimination in Employment; Affirrna.tive Action ... ... 33 12 Event ofDefault and Remedies 34 121 Live Nation's Defaults......................................................34 12 2 City's Remedies „ . „ .. . .,, . 4 12.3 City's Defaults „ „ .. 35 12,4 Live Nation's Remedies .., .., „ , „ .,, ., ., ., . 35 12.5 Late Payments ...... ........ .... „ .... .. 36 13 Termination 13 1 Effect of Termination ....., 13 2 Surrender of Premises 36 36 14, Net Worth Requirement; Security .. .... ...... . ....... ..... ., 36 14,1 Net Worth Requirement , .,. ., .b 14.2. Security .., . 37 15 Miscellaneous ....................... ..... ... . 8 15 1 Venue/Waiver of Jury Trial ....... ...... . 38 15 2 No Partnership or Joint Venture .. .... . ...... ...... .. ........... .. ........ .. 38 15 3 Entire Agreement 15.4 Written Amendments , . „ .. .. .. ..... .... .. ... . .. . .. ... 38 15.5 Force Majeure 39 15..6 Binding Upon Successors and Assigns; No Third Party Beneficiaries ......... .... 39 15 7 Notices.., ., 40 15 8 Section Headings and Defined Ierms ..... .. 40 15.9 Severability .. ..... .. „ , , 41 15.10 Non -Waiver .. .,.... 41 15.11 Certain Representations and Warranties ... .. , .. , . ... 41 15 12 Governing Law „ ., „ . 41 EXHIBITS EXHIBIT A LEGAL DESCRIPTION OF THE FACILITY EXHIBITS CITY WORK EXHIBIT C - UPGRADES TO BE MADE BY LIVE NATION EXHIBIT D - MINIMUM OPERATING AND MAINTENANCE STANDARDS EXHIBIT E LIST OF CIIY AGREEMENTS EXHIBIT F PENDING BOOKINGS EXHIBIT G APPROVED SPONSORS EXHIBIT H STANDARD RENTAL AGREEMENT — THIRD PARTY USE EXHIBII II -1 STANDARD RENTAL AGREEMENT — CITY USE MANAGEMENT AGREEMENT THIS MANAGEMENT AGREEMENT (this "Agreement") is dated as of the day of ,Twvc , 2007 ("Effective Date"), by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws of the State of Florida, and having its principal office at City Hall, 1700 Convention Center Drive, Miami Beach, Florida 33139 (the "City"), and LIVE NATION WORLDWIDE, INC., a Delaware corporation, whose address is 9348 Civic Center Drive, Beverly Hills, California 90210 ("Live Nation") BACKGROUND City is the owner of the Jackie Gleason Theater of the Performing Arts, as more particularly described and depicted on Exhibit "A" attached hereto and made a part hereof' (the "Facility"), located in the City of Miami Beach, Florida. Live Nation is engaged in the business of operating, maintaining, managing and booking live entertainment facilities, including operations and marketing services for such facilities City desires to engage Live Nation, and Live Nation desires to accept the engagement, to provide management services for the Facility on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual premises, covenants and agreements herein contained, the parties hereto, intending to be legally bound, agree as follows: F. Definitions For purposes of this Agreement, the following terms have the meanings referred to in this Section 1: "Affiliate(s)" -- an entity that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, a specified entity. For purposes of this definition, "control" means ownership of equity securities or other ownership interests which represent more than 51% of the voting power in the controlled entity "City" -- as defined in this first paragraph of this Agreement.. "City Commission" -- the governing and legislative body of the City.. "City Agreements" -- those existing agreements between the City and a third party relating to the Facility that are listed on Exhibit "E ." "City Manager" -- the chief executive officer of the City or such person as may from time to time be authorized in writing by such administrative official to act for him/her with respect to any or all matters pertaining to this Agreement, "City Work" -- the work to be performed by City at its sole cost and expense described in Exhibit "B" hereto, which City Work will be performed by City in accordance with Section 5 4(b)(ii) "Commencement Date" -- as defined in Section 3 1. "Event" -- all uses which involve a scheduled beginning and ending time, typically all within the same day (or for evening Events, typically commencing in the evening and concluding before 1:00 a m of the succeeding day unless otherwise approved in writing by City Manager).. With respect to a "Run" (as such term is hereafter defined), each show within the R.un shall constitute an Event "Event Expenses" -- any and all expenses incurred or payments made by Live Nation in connection with the occurrence of an Event at the F acility, including, but not limited to, costs for event staffing including ushers, ticket takers, security and other event staff; and costs relating to setup and cleanup. "Excess City Distribution" -- as defined in Section 4,3.. "Expiration Date" --- as defined in Section 3 1. "Facility" -- as defined in the Background Section of this Agreement and as depicted on Exhibit "A" hereto, "Fiscal Year" -- each one year period beginning January 1 and ending December 31 "Governmental Requirements" -- all laws, ordinances, rules, regulations, statutes, and other legal requirements of any governmental body or authority or any agency thereof' (including, without limitation, federal, state, county, and municipal)., "Live Nation" -- as defined in the first paragraph of this Agreement "Management Fee" -- as defined in Section 4.1(a)(i) "Net Operating- Loss/Profit" -- with respect to a Fiscal Year, the excess, if any, of Operating Expenses for such Fiscal Year over Operating Revenues for such Fiscal Year, in the case of a loss, and the excess, if any, of Operating Revenues for such Fiscal Year over Operating Expenses for such. Fiscal Year, in the case of a profit. "Operating Expense Exclusions" -- all costs of City Work, ad valorem real estate taxes and assessments, costs to remedy any violations of Governmental Requirements existing on the Commencement Date (other than violations that will be cured by the Upgrades), any sales tax or surcharge upon ticket sales imposed by the City specifically as opposed to a tax or surcharge imposed generally upon ticket sales in the City (except any such taxes imposed in connection with the Community Benefit Fund), "Operating Expenses" -- any and all expenses and expenditures of whatever kind or nature incurred, directly or indirectly, by Live Nation in promoting, operating, maintaining, insuring and managing the Facility, including, but not limited to: employee compensation and related expenses (e.g.., base salaries, bonuses, severance and cat allowances), employee benefits and related costs (e.g.., relocation and other related expenses pursuant to Live Nation's relocation policy, parking and other fiinge benefits), supplies, material and parts costs, costs of any interns and independent contractors, advertising, all costs of maintaining the F acility as required by this Agreement, marketing and public relations costs and commissions, janitorial and cleaning -2- expenses, data processing costs, dues, subscriptions and membership costs, amounts expended to procure and maintain permits and licenses, sales taxes imposed upon ticket sales or rentals, special assessments imposed upon the Facility by any governmental entity, professional fees directly relating to the operation of the Facility, printing and stationery costs, Event Expenses, postage and freight costs, equipment rental costs, computer equipment leases and line charges, telephone switch and telecommunications services, repairs and maintenance costs (e.g.., elevators and HVAC), artist and talent fees, costs, and expenses, show settlement charges, security expenses, travel and entertainment expenses in accordance with Live Nation's normal policies, the cost of employee uniforms, safety and medical expenses, exterminator and waste disposal costs, costs relating to the maintenance of signage inventory and systems, the cost of compliance with Governmental Requirements, all utility costs, all premiums for insurance carried by Live Nation pursued to Sections 8 2, 8 3 and 8.4, the cost of capital improvements made pursuant to Section 5 4 (except, however, the cost of Upgrades or capital improvements made pursuant to Section 5,4(b)(i), the cost of which shall be paid by Live Nation from its own funds, and except the cost of City Work made pursuant to Section 5 4(b)(ii), the cost of which shall be paid by City from its own funds), the cost of all personal property and equipment (other than Upgrades), and the internal service charges assessed by the City to the Facility for chilled water charges (which shall be fair and equitable but shall not include any capital cost component) and all other costs of operating and maintaining the Facility, except, however, Operating Expenses shall not include the Management Fee or any Bonus paid pursuant to Section 4.1, the cost of Upgrades, any Operating Expense Exclusions, or any costs of litigation between City and Live Nation, or any other costs that are specified in this Agreement as costs to be paid by City. All Operating Expenses shall be determined in accordance with generally accepted accounting principles consistently applied and recognized on a full accrual basis "Operating Revenues" -- any and all revenues of every kind or nature derived fiorn operating, managing or promoting the Facility, including, but not limited to: license and concession fees, rentals, revenues from merchandise sales, advertising sales, equipment rentals, box office revenues, food service and concession revenues (however, if such revenues are collected in the first instance by and retained by the concessionaire, only the amount of such revenues paid by the concessionaire to the Facility shall be included as Operating Revenues), commissions or other revenues nom decoration and set-up, security and other subcontractors (however, if such revenues are collected in the first instance by and retained by such subcontractors, only the amount of such revenues paid by such contractors to the Facility shall be included as Operating Revenues), miscellaneous operating revenues, revenues generated from separate agreements with Live Nation Affiliates pertaining to the Facility, sponsorship revenues, and interest revenues, all as determined in accordance with generally accepted accounting principles and recognized on a full accrual basis For the sake of clarity, the parties acknowledge that revenues from the sale of tickets for Events at the Facility are not Operating Revenues, but are instead revenues of the promoter and/or performer of each such Event, To the extent that Live Nation collects such ticket sale revenue on behalf' of a promoter and/or performer, such ticket sale revenue shall be the source of funds from which Live Nation collects the rental charges and other event reimbursements owed by the promoter and/or performer for use of the Facility, which such charges and reimbursements are Operating Revenues hereunder Operating Revenues shall not, however, include any revenue from valet parking or any other parking charges with respect to the Facility or Events and shall not include any revenues from name-in- -3- title rights (i.e.., the right to name the Facility and signage related thereto), all of which are specifically reserved to City.. "Renewal Term" -- as defined in Section 3,2. "Reunited City Distribution" -- the following amounts shall be deemed Required City Distributions: Required City Distributions for a Renewal Term shall be determined pursuant to Section 3 2 (i) for the period commencing with the Commencement Date and continuing through December 31, 2007, the sum of $524,999 98; (ii) for the Fiscal Year commencing .January 1, 2008, the sum of $1,020,000; and (iii) for the Fiscal Year commencing January 1, 2009 and each Fiscal Year thereafter for the remainder of the Term, the Required City Distribution shall be an amount equal to the product of 1.02 multiplied by the Required City Distribution in effect for the preceding Fiscal Year. Required City Distributions shall be paid to City in advance on the first day of each Fiscal Year or partial Fiscal Year "Run" -- as defined in Section 2 2(b). "Tangible Net Worth" — net worth (which shall be total assets of'Live Nation minus all of its total liabilities) minus its intangible assets, all according to generally accepted accounting principles (GAAP), consistently applied.. "Term" -- as defined in Section 3 1; provided, however, if' this Agreement is extended for a Renewal Term, all references to "Terni" contained herein shall also include the Renewal Term. "Upgrade Consents" -- all City and other governmental and quasi -governmental consents and approvals (including building permits to allow Live Nation to commence all Upgrades) and to commence use and operation of the Facility as provided herein, including sublicensing of Live Nation to utilize the liquor license held by City and any required certificates of occupancy or use and all required approvals to allow sale of'food and beverages.. "Upgrades" -- the work to be performed by Live Nation in accordance with Section 5.4(b)(i) at the sole cost and expense of Live Nation and not as an Operating Expense, as listed on Exhibit "C" hereto. remainder of page intentionally blank -4- 2. Engagement of Live Nation; Scope of Services. 2..1.. Engagement (a) General Scope City hereby engages Live Nation to operate, manage, maintain, promote and market the Facility during the Term, upon the terms and conditions hereinafter set forth (b) Manager• of the Facilitv. Live Nation accepts the engagement and agrees to operate, manage, maintain, promote and market the Facility in a manner consistent with other similar first class facilities operated by Live Nation and its Affiliates as of the Commencement Date. Subject to the terms of this Agreement, Live Nation shall be, as agent for the City, the sole and exclusive manager of the City to operate, manage, maintain, promote and market the Facility during the Term In such capacity, except as otherwise expressly reserved under this Agreement to the City and/or except for such matters as are subject to the approval of City or City Manager, Live Nation shall have exclusive authority over the management and operation of the Facility and all activities therein; provided, however, the Facility shall be used only as a live entertainment venue and public auditorium or any combination thereof, and for such ancillary uses as are customarily related to such primary use, including, without limitation, broadcasting, recording, filming, private patties or functions, bar (including alcoholic beverages) and food concessions (and including preparation of food), in each case in conjunction with an Event or rental function then being held, and sale of merchandise related to any Event then being held. Other uses may be allowed only with the prior written approval of the City Manager Without limiting the generality of the foregoing, in no event shall food or beverages be sold, distributed, or served after midnight and in no event shall alcoholic beverages be sold in bottles.. Live Nation shall also have the right to office its personnel out of the Facility as and to the extent Live Nation may desire the Facility includes only a very limited number of parking spaces adjacent to the building. Patrons of Events may pack in public parking lots and garages if' and to the extent available, upon paying the applicable parking charges Live Nation recognizes that the availability and access to public parking will be affected from time to time by construction activities, including, without limitation, construction in connection with City Hall and parking garage(s), on public surface packing lots, and construction on the front lawn of the F acility in conjunction with the New World Symphony project.. 2 2 Scope of Services. (a) General Live Nation shall perform and furnish management services, personnel, and systems and materials as are appropriate or necessary to operate, manage, supervise, maintain, promote and market the Facility in a manner consistent with the operations, management, promotions and marketing of other similar first-class facilities operated by Live Nation and its Affiliates on the Effective Date.. (b) Required Number of Events: Continuous Operation; Conclusion of Events, In order to ensure the continuous operation of the Facility, commencing with the Fiscal Year that starts .January of 2008 Live Nation shall cause at least 50 Events to be held at the - 5 - Facility for each Fiscal Year (and proportionately for any partial Fiscal Year) during the Term. The aforesaid fifty (50) Events shall be calculated by counting each separate Event in a Run but Live Nation agrees that in Fiscal Year 2008 and each Fiscal Year thereafter there will be not less than 17 different acts (and for purposes of calculating whether this requirement has been met, each Run shall be considered only as a single act). Live Nation shall cause the Facility to be open on a year round basis, subject to closures for reasonable periods for repairs, maintenance and alterations All Events and all rentals shall conclude prior to 1:00 a.m unless otherwise approved by City Manager in writing Notwithstanding the foregoing, Live Nation shall be allowed to cease operations at the Facility in whole or in part during the period from the Commencement Date through December 31, 2008 to perform the Upgrades, and the number of required Events shall be proportionately reduced for the period(s) of cessation, (c) Booking Policies, In booking the Facility, Live Nation will use such booking policies as are used by Live Nation as of the Commencement Date at other similar first- class facilities operated by Live Nation, subject to the restrictions and limitations set forth herein Except as otherwise provided herein, Live Nation shall have the sole authority to approve the scheduling of any Event in the Facility, including, Events of a nontraditional nature such as multi-year user contracts (but not beyond the Term) and Events requiring or having co - promotions Live Nation covenants and agrees to book Events each Fiscal Year that are balanced so as to ensure a reasonably proportioned blend of eultural experiences including varied types of music and other live performances appealing to the varied tastes of the population including, without limitation, popular, rock and roll, Latin, blues, soul, jazz, folk, classical, and country music, and comedy and theater.. Live Nation shall have no obligation, however, to book any type or category of Events or specific Event that are unprofitable, as reasonably determined by Live Nation. City Manager shall have the right, however, to prohibit certain Events or uses from occurring, upon City Manager's reasonable determination that such Event or use might present unreasonable safety concerns. Notice of any such determination shall be sent by written notice to Live Nation within fourteen (14) days after City Manager has received the bi-weekly booking report from Live Nation that specifies the potential Event and if such determination is not delivered within such fourteen (14) day period, then the Event may be held Live Nation shall use good faith efforts to accommodate the Miami Beach Convention Center and the Greater Miami Convention and Visitors Bureau to allow them to book the use of the Facility in accordance with the following: (i) reservations for rotational conventions, trade shows and meeting business may be made by the Miami Beach Convention Center and/or the Greater Miami Convention and Visitors Bureau up to sixty (60) months prior to an Event or intended use, (ii) reservations must be confirmed at least twelve (12) months before the scheduled Event, (iii) such reservation can not be in conflict with another Event already scheduled or on a "hold" by Live Nation, (iv) such Event can not be of a duration in excess of two (2) consecutive days, and (v) the Miami Beach Convention Center and/or the Greater Miami Convention and Visitors Bureau, as applicable, executes Live Nation's standard rental agreement for Events Attached hereto as Exhibit "F" is a list of Events or rentals which have been booked prior to the date of execution of this Agreement. Live Nation shall honor all such bookings (but no such Events may be scheduled during performance of the Upgrades) and shall receive from City all revenues from the agreements that have already been paid and shall receive all remaining revenues under the agreements. -6- 2.3, Specific Services Without limiting the generality of the foregoing, Live Nation shall perform all of the following services, all without the necessity of first obtaining City's approval (except as otherwise expressly provided in this Agreement), all of which shall be performed by Live Nation in a manner consistent with other similar first class facilities operated by Live Nation on the Commencement Date: (a) subject to the terms and requirements of this Agreement, establish all booking policies and control the booking of the Facility, including, determining the form of rental or use agreement to be used for the use or rental of the Facility. Live Nation shall hold the master set of all booking records and schedules and shall provide copies of the booking schedules to City Manager bi-weekly or at such other times as City Manager shall request, Live Nation shall, from time to time, review the booking policies and advise the City Manager of changes, if any, in the booking p-olicies and Live Nation shall consider any requests or suggestions made by City or City Manager; (b) employ, supervise and direct all employees and personnel consistent with the provisions of this Agreement All employees shall be employees of Live Nation, its affiliates or third parties, and not City Live Nation shall assure that the Facility is adequately staffed with competent, qualified personnel to fulfill its responsibilities under this Agreement; (c) administer relationships with all third parties (including, without limitation, entering into contracts and licenses for the food and beverage concessionaire at the Facility) for the use, maintenance and operation of the Facility, initiate and participate in any and all negotiations, renewals and extensions relating to such third party relationships, and enforce contractual agreements concerning any such third party relationships; (d) negotiate, execute in its name as agent for the City, deliver and administer any and all licenses, occupancy agreements, sponsorship agreements (excluding name -in -title and valet parking agreements), rental agreements, booking commitments, concession agreements, supplier agreements, service contracts (including, without limitation, contracts for cleaning, decorating .and set-up, emergency services, general maintenance and maintenance and inspection of HVAC and other systems and elevators, stage equipment, fire control panel and other safety equipment, staffing and personnel needs, including guards and ushers, telephone, extermination and other services which are necessary or appropriate) and all other contracts and agreements in connection with the management, maintenance, promotion and operation of the Facility, provided that (1) if any such license, agreement, commitment or contract has a term that extends beyond the remaining Term or Renewal Term, as the case may be, such license, agreement, commitment or contract shall provide that it is automatically assigned to City as of the expiration or termination date of' this Agreement and that the City Manager may terminate any such agreement without payment thereafter at any time upon not less than ten (10) days written notice, (2) Live Nation shall have the sole authority to approve the scheduling of any Event to be held at the Facility, subject to the limitations and requirements of this Agreement, and (3) any contract entered into between Live Nation and a subsidiary and/or affiliate company shall be at terms and for prices customarily charged by such subsidiary and/or affiliate company for comparable goods and services elsewhere at rates that are competitive within the industry; - 7 - (e) maintain the Facility (including, without limitation, all structural components thereof and all electrical, HVAC, life safety, mechanical, plumbing and other systems and equipment) in a good and .clean condition consistent with other similar first class facilities operated by Live Nation and its Affiliates as of the Commencement Date and in compliance with all Governmental Requirements, ordinary wear and tear, and casualty loss excepted. Maintenance responsibility shall include, without limitation, repairs and replacements (structural, nonstructural capital and noncapital) and preventative maintenance and good faith endeavor to comply with Exhibit "D" hereto. Live Nation shall maintain in full force and effect service contracts with qualified and licensed service providers with respect to HVAC, roof and elevator systems unless Live Nation warrants and represents to City Manager that Live Nation has sufficient trained and qualified employees (in each case with not less than one year's experience) to maintain such systems and that any warranties will not be voided as a result thereof. Live Nation shall keep on-site maintenance manuals and records reflecting all of Live Nation's maintenance activities, all of which shall be available for inspection by City Manager or his designee upon request Live Nation shall submit to City Manager or his/her designee periodic (not less than quarterly) reports specifying all maintenance work performed during such period, which reports shall be used by the City's Property Management Division or its consultant as part of an annual maintenance inspection and review, Live Nation represents and agrees that prior to the Effective Date Live Nation inspected the Facility and Live Nation has accepted the Facility "as -is, where -is and with all faults" except for the City Work and violations of Governmental Requirements existing as of the Commencement Date (other than those that will be cured by the Upgrades). (t) rent, lease, or purchase all equipment and maintenance supplies necessary or appropriate for the operation and maintenance of the Facility; (g) establish and adjust prices, rates and rate schedules for the aforesaid licenses, agreements and contracts and any other commitments relating to the Facility to be negotiated by Live Nation in the course of its management, operation, booking and promotion of the F acility.. Live Nation shall consult with the City Manager about any adjustments to the rate schedules at the Facility to be made by Live Nation; (h) pay when due, on behalf of the City, all Operating Expenses from accounts established pursuant to Section 5.3 or from Live Nation's own funds pursuant to Section 5 1; (i) after consultation with the City Manager and the City Attorney, and subject to approval by the City Attorney or his designee, institute as agent for the City, the costs of which shall be included as Operating Expenses, such legal actions or proceedings necessary or appropriate in connection with the operation of the Facility (using legal counsel approved by the City Attorney), including, without limitation; to collect charges, rents or other revenues due to the City or to cancel, terminate or sue for damages under, any license, use, advertisement or concession agreement for the breach thereof or default thereunder by any licensee, user, advertiser, or concessionaire at the Facility Institute on Live Nation's own behalf' (and not as - 8 - agent for City) without consultation or approval of the City, the costs of which shall be included as Operating Expenses, such legal actions or proceedings necessary or appropriate in connection with the operation of the Facility, including, without limitation, to collect charges, tents or other revenues due to the City or Live Nation or to cancel, terminate or sue for damages under, any license, use, advertisement or concession agreement for the breach thereof or default thereunder by any licensee, user, advertiser, or concessionaire at the Facility; (j) maintain a master set of all booking records and schedules for the Facility (which shall be available for inspection by City Manager upon written request); (k) provide day-to-day administrative services in support of its management activities to ensure that the Facility shall be operated, managed, and maintained and performed in a first class mariner consistent with similar first class facilities operated by Live Nation and its Affiliates as of the Commencement Date including, but not limited to, acquisition of services, equipment, supplies and facilities; maintenance and property management; personnel management; record-keeping; collections and billing; and similar services; (1) engage in advertising, solicitation, and promotional activities necessary to effectively market the Facility and Events. In connection with its activities under the terms of this Agreement, Live Nation will be permitted to use the logo and brand identity of the City of Miami Beach, as approved by the City Manager or his designee, and the Facility; (m) operate the Facility's telephone switch and telecommunications services; (n) act as a collection agent for the City on sales taxes from operation of the Facility and remit to the State of Florida such sales taxes; (o) subject to the terms of this Agreement, cause the Facility to be in compliance with all Governmental Requirements at all times including, without limitation, making such repairs, improvements, alterations and additions (both capital and non -capital and structural and non-structural) required thereby; (p) comply with all City Agreements; (q) Except as otherwise approved by the City Manager', Live Nation shall not license or allow the use of any portion of the Facility to other than short-term users (i c , less than thirty (30) consecutive days) Live Nation shall require that all users of the Facility provide certificates of insurance evidencing appropriate insurance and any other insurance required by the applicable license, use or occupancy agreement. Copies of these certificates shall be furnished to the City Manager or his/her designee prior to any Event or use Such insurance shall be kept in force at all times by all licensees, users, lessees and concessionaires. All liability policies shall name the City and Live Nation as additional insureds. Live Nation shall also require all users of Facility to execute, among the terms of' the license, agreement or occupancy agreement, an agr eement to indemnify, defend and hold harmless the City (the form of such indemnity provisions to be subject to City Attorney's approval, not to be unreasonably withheld; provided that Live Nation's standard rental agreement, attached hereto as Exhibit H, is deemed approved and if the indemnity provisions therein are utilized in any such license, agreement or occupancy agreement, the same shall be deemed approved) -9- (r) provide professional consulting assistance to City from time to time respecting City's booking and programming for the `Byron" and "Colony" venues, subject to the terms hereof (herein, the "Byron/Colony Assistance"). Live Nation's requirement to provide the Byron/Colony Assistance shall be limited to reasonable consulting services only and expressly shall not include any obligations for promoting, operating, maintaining, managing, business development, sales, programming or booking, and expressly shall not include any liability for any asserted failure of such consulting services to meet any required standard or fiequency.. (s) Attend scheduled Major Events Planning (MEP) meetings 2,4 City and Charitable Use of Facility and Ticket Programs (a) Free City Use, City shall be entitled on two (2) occasions in each full Fiscal Year (and proportionately for any partial Fiscal Year) during the Term and any Renewal Term, subject to the terms and conditions hereof,' to make use of' the Facility for hosting an Event of one (1) day or one (1) evening, in each case expressly subject to the provisions of this subparagraph (a) (such instance(s) of' use by City is herein referred to as "City Use"), Although City shall not owe a fee, rent or other payment strictly for the right to make such City Use, nonetheless (i) City shall promptly (within ten (1 0) business days after receipt of written invoice therefor), reimburse Live Nation for all actual expenses and costs incurred by Live Nation to facilitate City Use, including, without limitation, Live Nation's standard charges for janitorial, clean up, crowd and traffic control, set-up and tear -down costs and fees and charges (including for materials, labor and other services) directly necessitated by the occurrence of City Use; (ii) Live Nation shall retain exclusive rights to the operation of all concessions and other operations at the Facility during City Use, including, without limitation, food and beverage concessions and sales, including alcoholic beverages (but City Manager shall have the right to prohibit the sale of alcoholic beverages for any City Use); and all proceeds of such sales and concession operations shall be Operating Revenues City shall have no right to reserve or retain any portion of the concession proceeds nor to operate in competition therewith. Live Nation will ensure that the pricing for any concessions shall not exceed the normal pricing therefor charged at standard Events at the Facility; (iii) all City Use Events shall be scheduled in accordance with Live Nation's scheduling needs so as not to conflict with or impair Live Nation's ability to maintain its anticipated schedule of Events, but shall otherwise be scheduled at times convenient for City, with Live Nation reasonably cooperating with City in coordinating all scheduling (but in any case, Live Nation shall not be obligated to permit any City Use unless scheduling therefor was memorialized in writing signed by the parties in advance of any City Use); (iv) City shall not be permitted to have a City Use for a concert or that violates the terms of any sponsorship entered into by Live Nation (for purposes of this sentence, a "concert" that is so prohibited shall not refer to "amateur talent" as defined below); and (v) City's entering into the standard use agreement attached hereto as Exhibit H-1. So long as Live Nation has complied with its obligations under this subparagraph (a), City shall not be entitled to "roll over" or "catty forward" any unused City Use opportunity fiom a prior Fiscal Year; such that if during any Fiscal Year fewer than two (2) City Uses actually occur for any reason, including reasons that were completely outside the parties' reasonable control, then City shall be deemed irrevocably to have waived its right or. entitlement to the City Use Event that otherwise could have occurred during the prior Fiscal Year(s), Live Nation shall have the right to promulgate reasonable rules from time to time concerning City Use so long as they are consistent with the terms hereof' and rules imposed upon - 10 - other Events at the F acility For purposes of this Section 3 4, "amateur talent" shall be given its common and every day meaning and shall refer to performers of conceits who do not perform on a regular basis for commercial gain as their primary occupation (b) Free Charitable Use.. City shall be entitled on two (2) occasions in each full Fiscal Year (and proportionately for any partial Fiscal Year) during the Term and any Renewal Term, subject to the terms and conditions hereof, to allow the F acility to be used for the Facility's ordinary purposes by a duly qualified charitable organization (e g , a 501(c)(3) entity or school) and of duration of one (1) day or one (1) evening and expressly subject to the provisions of this subparagraph (b) (each instance of such use is herein referred to as "Charitable Use"). Although City shall not owe a fee, rent or other payment strictly for the Charitable Use, (i) City shall promptly (within ten (10) business days after receipt of invoice therefor) reimburse Live Nation for all actual expenses and costs incurred by Live Nation to facilitate the Charitable Use, including, without limitation, Live Nation's standard charges for, janitorial, clean up, crowd and traffic control, set-up and tear -down costs and fees and charges (including for materials, labor and other services) directly necessitated by the occurrence of any Charitable Use; (ii) Live Nation shall retain exclusive rights to the operation of all concessions and other operations at the Facility during any Charitable Use, including, without limitation, food and beverage concessions and sales, including alcoholic beverages (but City Manager shall have the right to prohibit the sale of alcoholic beverages during any Charitable Use) and all proceeds of sales and concession operations shall be Operating Revenues (City shall have no right to retain or reserve any portion thereof' nor to operate in competition therewith); Live Nation will ensure that the pricing for any concessions shall not exceed the normal pricing therefor charged at standard Events at the Facility; and (iii) any Charitable Use Event shall be scheduled in accordance with Live Nation's scheduling needs so as not to conflict with or impair Live Nation's ability to maintain its anticipated schedule of Events; but shall otherwise be scheduled at a time convenient for the City, with Live Nation reasonably cooperating with City in coordinating all scheduling (but in arty case, Live Nation shall not be obligated to permit any Charitable Use unless scheduling therefor was memorialized in writing signed by the parties in advance of any the Charitable Use Event); (iv) City shall not be permitted to have a Charitable Use for a concert or that violates the terms of any sponsorship entered into by Live Nation (for purposes of this sentence, a "concert" that is so prohibited shall not refer to "amateur talent" as defined in Section 2 4(a)); and (v) City's or the charitable organization's entering into a standard use agreement in the form of Exhibit H-1 in the case of' the City and Exhibit H in the case of a charitable organization So long as Live Nation has complied with this subparagraph (b), City shall not be entitled to "roll over" or "carry forward" any unused Charitable Use from a prior Fiscal Year; such that, in the event during any Fiscal Year no such Charitable Use Event occurs for any reason, including reasons which were completely outside the parties' reasonable control, then, City shall be deemed irrevocably to have waived its right or entitlement to the benefit of the Charitable Use Event that otherwise could have occurred during the prior Fiscal Year(s).. Live Nation shall have the right to promulgate reasonable rules from time to time concerning the Charitable Use so long as they are consistent with the terms hereof and rules imposed upon other Events at the Facility, (c) Free City Parks and Recreation Summer Showcase Event Use (currently referred to as the "Playground Review"). Commencing in Fiscal Year 2008, City shall be entitled on one (1) occasion in each full or partial Fiscal Year during the Term (for these purposes, such "one (1) occasion" shall mean a total of three (3) consecutive days and nights, - 11 - inclusive of rehearsal and the Event), to make use of the Facility for hosting the Parks and Recreation Summer Showcase Event (currently referred to as "Playground Review") subject to the provisions of' this subparagraph (c) (each instance of use by the City is herein referred to in this subparagraph (c) as the "City Playground Review Use") Although City shall not owe a fee, rent or other payment strictly for the right to make such City Playground Review Use, (i) City shall promptly (within ten (10) business days after receipt of written invoice therefor) r eimburse Live Nation for all actual expenses and costs incurred by Live Nation to facilitate the City Playground Review Use, including, without limitation, Live Nation's standard charges for janitorial, clean up, crowd and traffic control, set-up and tear -down costs and fees and charges (including for materials, labor and other services) directly necessitated by the occurrence of the City Playground Review Use; (ii) Live Nation shall retain exclusive rights to the operation of all concessions and other operations at the Facility during any City Playground Review Use, including, without limitation, food and beverage concessions and sales (hut the sale of alcoholic beverages shall be prohibited during the Playground Review Use unless specifically authorized in advance in writing by City Manager) and all proceeds of the sales and concession operations shall be Operating Revenues (City shall have no right to reserve or retain any portion thereof nor to operate in competition therewith); Live Nation will ensure that the pricing for any concessions shall not exceed the normal pricing therefor charged at standard events at the Facility; (iii) the City Playground Review Use Event shall be scheduled each Fiscal Year or partial Fiscal Year on Tuesday, Wednesday and Thursday of the second week in July; provided, however, City may request another weekend and Live Nation shall reasonably cooperate with City in coordinating scheduling of another weekend (but in any case, Live Nation shall not be obligated to permit the City Playground Review Use Event unless scheduling therefor does not conflict with other Events and is memorialized in writing signed by the parties in advance of the City Playground Review Use Event); (iv) under no circumstances shall City be permitted to have a City Playground Review Use Event for a concert or that violates the terms of any sponsorship entered into by Live Nation (but this provision shall not be deemed to prohibit City from including concerts by "amateur talent" as defined in Section 2.4(a) performing as part of the Event), and (v) City's entering into the standard use agreement attached hereto as Exhibit H-1. So long as Live Nation has complied with this subparagraph (c), City shall not be entitled to "roll over" or "carry forward" any unused City Playground Review Use opportunity from a prior Fiscal Year; such that, in the event during any Fiscal Year no City Playground Review Use occurs for any reason, including reasons that were completely outside the parties' reasonable control, then, City shall be deemed irrevocably to have waived its right or entitlement to the City Playground Review Use Event that otherwise could have occurred during the prior Fiscal Year(s) Live Nation shall have the right to promulgate reasonable rules from time to time concerning the City Playground Review Use so long as they are consistent with the terms hereof' and rules in effect for other Events at the Facility Notwithstanding anything to the contrary contained herein, City shall have the right to sell memorabilia directly related to the Event such as CD/DVD products and to retain any proceeds thereof. (d) Free Complimentary Tickets City shall be entitled to receive twenty-six (26) complimentary tickets for each Event at the Facility that is open to the general public, including those presented or promoted by Live Nation and including third party rentals but which is not a City Playground Review Use Event or a Charitable Use Event (herein, "Complimentary Tickets"), subject to the provisions of this subparagraph (d) City may not engage in the sale or re -sale of the Complimentary Tickets nor may City offer any Complimentary Tickets to the - 12 - intended user prior to the date the tickets have first become generally available to the public. Under no circumstances shall City be entitled to "roll over" or "carry forward" any unused or un - retrieved Complimentary Tickets; such that, in case of any Event for which City neglects or otherwise fails to secure the Complimentary tickets for any reason other than Live Nation's failure to comply with its obligations under this subparagraph (d), including reasons that were completely outside the parties' reasonable control, then, City shall be deemed irrevocably to have waived its right or entitlement to those particular Complimentary Tickets and City shall not be entitled to any remuneration for any lost opportunity Under no circumstances shall City be entitled to secure any Complimentary Tickets within the three (3) days immediately preceding the applicable Event (at which point any Complimentary Tickets otherwise then available shall be deemed forfeited without any remedy or rights therein surviving) Live Nation shall have sole and exclusive control over seating location decisions for Complimentary Tickets from time to time so long as the Complimentary 'Tickets are seats within the top 30% tiered price level (and thus the location may change from Event to Event) Live Nation shall provide a contact with the City from whom the City can conveniently secure the Complimentary Tickets from time to time; provided, nothing herein shall obligate Live Nation to remind City of the availability of the Complimentary Tickets nor to physically deliver them to City, City shall arrange for an employee, messenger, or other authorized representative to physically retrieve any Complimentary Tickets fiom Live Nation (e) Free School Comelimentary Tickets. City shall be entitled to receive up to twenty-eight (28) complimentary tickets (if and as available and without an obligation to reserve seating to make them available) for each Event that is open to the general public (herein, "School Complimentary Tickets"), subject to the provisions of this subparagraph (e). In case a particular concert or performer appears on multiple consecutive occasions at the Facility, each of which qualifies as an Event hereunder, that series of Events shall be treated as a single event for purposes of Live Nation's obligation to provide School Complimentary Tickets [thus, for example, a ballet presented on four (4) consecutive evenings at the Facility or with multiple shows on consecutive days such as a matinee and evening show on Saturday and Sunday would constitute four (4) separate Events, but only a total of twenty-eight (28) School Complimentary Pickets shall be made available for that ballet, with such tickets of the particular show date and time to be determined by Live Nation in its sole and absolute discretion (any successive Events of a single performer or act is herein referred to as a "Run")] . Under no circumstances shall City be entitled to "roll over" or "carry forward" any unused or un -retrieved School Complimentary Tickets; such that, in case of any Event for which School Complimentary Tickets hereunder were available but in respect of which City neglects or otherwise fails to secure the School Complimentary Tickets for any reason, including reasons that were completely outside the parties' reasonable control, then, City shall be deemed irrevocably to have waived its right or entitlement to those particular School Complimentary Tickets and City shall not be entitled to any remuneration for any lost opportunity.. City may not engage in the sale or re -sale of School Complimentary Tickets nor may City offer any School Complimentary Tickets to the intended user prior to the date the tickets for any particular. Run of Events first become generally available to the public. City shall not be entitled to secure any School Complimentary Tickets except within the ten (10) business days immediately preceding the first presentation of' the applicable Run of Events Live Nation shall have sole and exclusive control over seating location decisions for School Complimentary Tickets, and Live Nation may elect to provide School Complimentary Tickets as general admission or any other type of ticket, Live Nation shall provide a contact with -1.3- the City from whom the City can conveniently secure School Complimentary Tickets from Lime to time; provided, nothing herein shall obligate Live Nation to physically deliver them to City City shall arrange for an employee, messenger, or other authorized representative to physically retrieve any School Complimentary Tickets from Live Nation. City expressly agrees as a material inducement to Live Nation's agreeing to make the School Complimentary Tickets so available that City shall distribute the School Complimentary Tickets only to schools that serve Miami Beach residents and without charge or fee therefor, with the stipulation that each school shall in turn make the School Complimentary Tickets available without charge or compensation only to bona fide students and/or faculty of' the schools Live Nation reserves the right to require those using any School Complimentary Tickets to show appropriate school picture ID and to check names against previously provided lists of recipients of the tickets. Live Nation shall have the right to promulgate reasonable rules from time to time concerning the use of the tickets so long as same are consistent with the terms hereof to assure the efficient operation of the Facility.. Live Nation will use good faith efforts to advise the City of the availability of School Complimentary Tickets for an Event at least two (2) weeks prior to the Event (f) Community Needs Auction - Net Proceeds Donation. City shall be entitled to receive net proceeds resulting from each Community Needs Auction Live Nation agrees to request of each act headlining any Event at the F acility that is promoted or presented by Live Nation that one or more of its stars autograph two (2) pieces of "memorabilia " So long as Live Nation makes the request in good faith, Live Nation shall be deemed to have discharged its obligations respecting its efforts to secure autographed memorabilia All memorabilia so autographed shall be kept and stored by Live Nation pending its auction Commencing with calendar year 2008, once during each Fiscal Year or partial Fiscal Year during the Term and Renewal Term, Live Nation shall host an Event at the Facility that includes an auction in which the autographed memorabilia accumulated to date shall be auctioned to the highest bidder (a "Community Needs Auction"), The theme of any Community Needs Auction, which City shall publicize in any manner the City determines is best, shall be a theme of enhancing and promoting the City's community social improvement programs or other social programs for community benefit and welfare as the City may reasonably determine ("Community Enhancement") All net proceeds of the Auction shall be delivered to the City promptly after conclusion of the Community Needs Auction and Live Nation's accounting thereof' City agrees that it shall apply all net proceeds for Community Enhancement, For these purposes, "net proceeds" shall mean all proceeds of bids actually received from the Community Needs Auction, reduced by all actual expenses and costs incurred by Live Nation to facilitate the Community Needs Auction, including, without limitation, a fair allocation toward janitorial, clean up, crowd and traffic control, set-up and tear -down costs and fees and charges (including for materials, labor and other services) directly necessitated by the occurrence of the Community Needs Auction, Live Nation shall retain exclusive rights to the operation of all concessions and other operations at the F acility during any Community Needs Auction, including, without limitation, food and beverage concessions and sales, including alcoholic beverages; and all proceeds of'the sales and concession operations shall be Operating Revenues (City shall have no other right of' participation in any portion thereof' nor to operate in competition therewith) Live Nation will ensure that the pricing for any concessions shall not exceed the normal pricing therefor charged at standard Events at the Facility, The Community Needs Auction shall be scheduled in accordance with Live Nation's scheduling needs so as not to conflict with or impair Live Nation's ability to maintain its anticipated schedule of Events, and the parties shall reasonably - 14 - cooperate with each other in coordinating all scheduling (but in any case, Live Nation shall not be obligated to permit any Community Needs Auction unless scheduling therefor was memorialized in writing signed by the parties in advance of any such Community Needs Auction). Under no circumstances shall the City be permitted to require Live Nation to host a Community Needs Auction that includes a commercial concert (but this provision shall not be deemed to prohibit City from including concerts solely by "amateur talent" (as defined in Section 2,4(a) performing as part of the Community Needs Auction) or that violates the terms of any sponsorship entered into by Live Nation City shall not be entitled to "roll over" or "carry forward" any unused Community Needs Auction opportunity from a prior Fiscal Year; such that, in the event during any Fiscal Year no Community Needs Auction occurs for any reason, including reasons that were completely outside the parties' reasonable control, then, City shall be deemed irrevocably to have waived its right or entitlement to the Community Needs Auction that otherwise could have occurred during such prior Fiscal Year(s).. Except as may be delivered to the winning bidder at a Community Needs Auction, City shall have no right or entitlement in or to any such memorabilia Live Nation reserves the tight to promulgate reasonable rules concerning the auction so long as same are consistent with the terms hereof to assure the efficient operation of the Auction or otherwise to address issues of health, safety, welfare and decorum.. (g) Community Benefit Fund Pursuant to Resolutions 83-17447, 84-17882, 12-20545, 93-20871, 97-22543, 2004-25583 (collectively, the "Resolutions'), City imposes a surcharge on all tickets sold at Events in the Facility and uses the proceeds thereof to fund the Community Benefit Fund, City uses funds in the Community Benefit Fund to subsidize the price of tickets made available to senior citizens and students and to pay for the rental of the Facility for twelve (12) Events per calendar year, Live Nation agrees (i) to continue to collect the surcharge and pay amounts so collected to the City on a monthly basis for deposit into the Community Benefit F und; (ii) to continue to make available for sale the maximum number of tickets currently set forth in the Resolutions at the same percentage discount as is in effect on the Commencement Date (a portion of the ticket price is paid from the Community Benefit Fund, a portion is paid by the senior citizen or student, and a portion is the discount that will be granted by Live Nation) and to continue to allow City to rent the Facility for twelve (12) Events per calendar year; and (iii) to cooperate with City as to the procedures for deposit of funds into the Community Benefit Fund and sale of tickets pursuant to the Resolutions The Community Benefit Fund is used solely to subsidize ticket prices for Events held at the Facility and for twelve (12) rentals per calendar year Live Nation recognizes and agrees that if the Community Benefit Fund becomes inadequate to subsidize the maximum number of tickets as currently specified in the Resolutions and to pay for twelve (12) rentals per calendar year, the surcharge may be increased by the City to a level that is adequate to do so (in which case Live Nation shall collect the surcharge of the increased rate).. In the event that any future Resolution increases the number of tickets to be available under the Community Benefit Fund, Live Nation shall not beat any economic loss as a result thereof and City shall be solely responsible for the additional costs associated with the increased number of tickets and there shall he no surcharge paid as a result thereof Live Nation agrees that the rental charge for each of the twelve (12) rentals paid by the Community Benefit Fund shall be fixed at $3,000 for the entire Term. (h) Resident Ticket Froaram.. Live Nation agrees to operate a ticket program available only to City of Miami Beach residents (meaning individuals who permanently reside in the City of Miami Beach), by which a limited number of tickets (no fewer than 100 tickets for - 15 - each Event) shall be made available at full face value pricing and charges, fees and taxes as applicable, including surcharges and commissions, to such City of Miami Beach residents ("Resident Tickets") in advance of ticket sales to the general public, Live Nation reserves the right to require proof of City residency including, but not limited to, government photo Ill, utility bill, school ID or other similarly credible indicia of residency, For these purposes, the foregoing Resident Tickets shall be subject to the following rules: Resident Tickets shall be made available to City of Miami Beach residents at least two (2) calendar days preceding the date upon which tickets first go on sale to the general public and shall remain available for a period of at least one (1) week after the first day on which such tickets go on sale to the general public.. All tickets shall be sold on a first come, first served basis and shall be available at the Facility box office The type and location of seating for all tickets shall be determined by Live Nation in its sole discretion but shall include a full range of all ticket prices Live Nation shall have the right to promulgate additional reasonable rules concerning such sales so long as same are consistent with the terms hereof to assure the efficient operation of the program and compliance with these terms and conditions, 2.5. Rights Reserved to Citv (a) Rights of Entry. Representatives, contractors and employees of the City shall have the right to enter all portions of the Facility to inspect same, to observe the performance of Live Nation of its obligations under this Agreement, to install, remove, adjust, repair, replace or otherwise handle any equipment, utility lines, or other matters in, on, or about the Facility, or to do any act or thing which the City may be obligated or have the right to do under this Agreement.. Nothing contained in this subparagraph is intended or shall be construed to limit any other rights of the City under this Agreement. The City shall not unreasonably interfere with the activities of Live Nation hereunder, and the City's actions shall be conducted such that disruption of Live Nation's work shall be kept to a minimum and there shall be no disruption of any Event by City (in its proprietary capacity of the foregoing shall not diminish any rights of' City in its governmental capacity) Nothing in this Section shall be construed to impose upon the City any independent obligation to make repairs, replacements, alterations, additions or improvements or perform any maintenance or create any independent liability for any failure to do so. (b) Valet Parking., City reserves to itself and its contractors and designees (i) all rights to provide valet parking to the Facility, and (ii) all proceeds from the valet parking operations.. City and its contractors and designees shall have the right to use the driveway entrance and areas located outside the entrance to the Facility for the valet parking operations and Live Nation shall not interfere with valet parking operations. With respect to any valet parking agreements executed by City after the Effective Date of this Agreement, City will include in such agreement a provision that obligates the valet parking companies to indemnify and hold Live Nation harmless from and against all claims resulting from the negligent acts or omissions of' such companies and further obligates such companies to include Live Nation as an additional insured on their general liability insurance policies.. Live Nation shall have no right to provide valet parking or to contract with other parties for valet parking with respect to the Facility. If Live Nation desires to prepurchase parking controlled by the City or to prepurchase valet parking, City Manager shall have the authority to negotiate and enter into such agreements with respect thereto as City Manager deems acceptable - 1 6 - Within one year from the Commencement Date, the City and Live Nation shall negotiate terms and conditions of a Parking Agreement, which will set forth the process and the parties' respective rights and obligations regarding requests by Live Nation, and consideration by the City Manager, for prepurchase of valet spaces and/or self -parking spaces controlled by the City; provided, however, any Parking Agreement (and any subsequent amendments thereto) shall be subject to approval by the City Commission (c) Signage The following provisions shall govern the name -in -title rights, interior naming rights, and the related signage rights with respect to the Facility: (i) Name -in -Title Exterior Signage. City reserves the name - in -title rights (i e, the right to name the Facility) and all revenue derived therefrom Notwithstanding the preceding sentence, Live Nation shall be permitted to change the name of the Facility to "The Fillmore Miami Beach at the Jackie Gleason Theater" if and only if the City Commission approves and adopts an ordinance amending Chapter 82, Article VI, Sections 82-501 through 82-505, as same may be amended from time to time (hereinafter, the "City's Naming Ordinance"), exempting the Facility from the requirements of the City's Naming Ordinance In the event that the City Commission (1) does not pass and adopt the aforestated ordinance amending the City's Naming Ordinance, and (2) does not approve the change of name of the Facility to "The Fillmore Miami Beach at the Jackie Gleason 'Theater" by December 31, 2007, then Live Nation shall have the right to terminate this Agreement pursuant to Section .3 3(a) hereof'. The City and Live Nation's mutual consent shall be required if the name of the Facility is changed to anything other than "The Fillmore Miami Beach at the Jackie Gleason Theater" (any such name change must be approved by a 5/7 vote of the City Commission).. Live Nation agrees that if the name -in -title is changed to "Fillmore Miami Beach at the Jackie Gleason Theater," Live Nation shall bear all costs (as part of Operating Expenses) to obtain and install new signage and to remove the existing signage. Further, if' the name -in -title is approved as stated herein, Live Nation agrees to utilize the full name of the Facility in its publications, advertising, promotions, websites, announcements, and other similar and related materials referring solely to the Facility, unless the use of the ;full name -in -title is otherwise not feasible due to size or space limitations on such publications, advertising, promotions, websites, announcements, and other similar and related materials, or outside of its direct control. All exterior signage shall be subject to City Manager's prior written approval as to size, location, materials and aesthetics.. Live Nation shall have no right to install any other signage on the exterior of the Facility, except that Live Nation may use the existing marquis sign to advertise upcoming Events.. City shall have no right to install or allow to be installed any signage on the exterior of the Facility without Live Nation's prior written approval as to size, location, materials, content and aesthetics.. (ii) Interior Naming Rights: Interior Signage„ Live Nation shall be entitled to all permanent (meaning for a specific area such as a VIP lounge together with a duration in excess of twelve (12) months) interior signage (and all proceeds derived therefrom shall be Operating Revenues); provided, however, that the sponsorship names thereon are subject to City Manager's approval which shall not unreasonably be withheld, conditioned or delayed. - 17 - The sponsorship names on any such signage may include any of the names shown on Exhibit "0" hereto (all of which are deemed approved) or such other names as may be approved by City Manager; provided, however, unless approved by City Commission, in no event may any such signage include the names of any company selling the following types of products ("Prohibited Names"): guns, tobacco or sexual products Nothing contained herein shall preclude Live Nation from allowing sponsors of temporary events from using temporary banners and temporary signage within the Facility with respect to any Event so long as the banners and signage do not include any Prohibited Names., Live Nation shall be entitled to all interior signage (and all proceeds derived therefrom shall be Operating Revenues),. (iii) General Requirements.. All signage (interior, exterior, permanent and temporary) shall comply with all applicable Governmental Requirements, and shall be maintained by Live Nation in good condition. 3. Term and Renewal Term 3..1.. Term, The "Term" of this Agreement shall commence on Tune 21, 2007 ("Commencement Date") and end at midnight on August 31, 2017 ("Expiration Date"), unless earlier terminated pursuant to the provisions of this Agreement, Live Nation shall have the exclusive right to manage and operate the Facility from and after the Commencement Date subject to the terms of this Agreement. City shall instruct the current manager of the Facility to cooperate and assist Live Nation in effecting a smooth transition of the management of the Facility No costs, fees or expenses of City under the current management agreement shall be included in Operating Expenses„ 3..2. Renewal Option, Live Nation shall have the option to extend this Agreement for a period five (5) years following the Expiration Date ("First Renewal Term") provided that all of the following conditions are met: (i) not less than 270 days not more than 730 days prior to the Expiration Date of this Agreement, Live Nation shall provide written notice to City ("Exercise Notice") stating that Live Nation desires to exercise the renewal option Iime shall be of the essence with respect to the Exercise Notice and if Live Nation fails to provide written notice as and when required, the renewal option shall expire and shall not thereafter be exercisable; and both at the time Live Nation delivers its Exercise Notice and at the time the First Renewal Term would otherwise commence, Live Nation shall not be in default under this Agreement In the event the conditions of (i) and (ii) are not met, then and in that event this Agreement shall expire at the end of the initial Term (i e,, on the originally stated Expiration Date) and the provisions of Section 13.1 shall apply - 18 - If; however, both conditions of (i) and (ii) are met, then and in that event this Agreement shall be renewed for the First Renewal Term on all of the same terms and conditions, except that the Required City Distribution for the first year of the First Renewal Term shall be adjusted as hereinafter provided, which amount shall thereafter be increased by two percent (2%) on .January 1, 2019 and on each January 1 of the First Renewal Ierm (and the Excess City Distributions under Section 4.3(a) and (b) shall remain applicable). The Required City Distribution for the first Fiscal Year of the First Renewal Term shall mean the annual Required City Distribution in effect during the last Fiscal Year (or partial Fiscal Year) of the initial Term multiplied by a fraction, the numerator of which is the CPI in effect for June 2017 and the denominator of which is the CPI in effect for June 2007 The parties recognize that the Required City Distribution for the last year of the Term will already reflect a 2% per annum increase in the Required City Distributions in effect at the Commencement Date and they fully intend that such amount be increased by the cumulative increase in the cost of living that occurred over the initial Term. As used herein "CPI" means the consumer price index for all urban consumers.. South Florida Area Average, all items (1982-1984 = 100) issued by the United States Department of Labor, Bureau of Labor Statistics, but if' such index is discontinued, a comparable index that measures increases in the cost of living shall be substituted. If this Agreement has been renewed for the First Renewal Term, Live Nation shall have the option to renew this Agreement for an additional five (5) years ("Second Renewal Term") if' and only if (a) Live Nation provides written notice to City of its desire to extend fol the Second Renewal T etnr not earlier than twelve (12) months nor later than nine (9) months prior to the end of the First Renewal Term; and (b) Live Nation and City, each acting in their sole and absolute discretion, agree in writing upon all terms and provisions and Required City Distributions that will be applicable during the Second Renewal Term not later than six (6) months prior to the end of the First Renewal Term. 3 3 Live Nation's Early Termination (a) Defeasance; Name -in -Title Change. Notwithstanding anything to the contrary contained in this Agreement, Live Nation shall have the right to terminate this Agreement upon either of the following occurrences: (i) if by December 31, 2007 City has not done one of the following: (y) caused the existing Resort Tax bonds to be defeased so that the Facility is no longer security for such bonds; or (z) obtained the unqualified opinion (issued to both City and Live Nation) of the City's bond counsel that this Agreement does not violate the bond obligations and, therefore, defeasance is not required; or (ii) City Commission has not approved the ordinance amending the City's Naming Ordinance to exempt the Facility from the requirements of same and has not approved the change in the name of the Facility to "The Fillmore Miami Beach at the Jackie Gleason Theater" by December 31, 2007. If either (i) or (ii) occurs but Live Nation does not give written notice of termination on or before January 31, 2008 (time being of the essence), Live Nation shall irrevocably be deemed to have waived its option to terminate and the provisions of this Section 3,3(a) shall be void. If' Live Nation timely exercises its right of termination, this Agreement shall be terminated as of January 31, 2008 and the provisions of Section 13 1 shall apply -19- (b) Upgrade Consents, Live Nation shall also have the right to terminate this Agreement in the event Live Nation has promptly applied for and diligently attempted to obtain all Upgrades Consents but has failed to obtain the Upgrades Consents on or before February 1, 2008., If Live Nation is entitled to terminate this Agreement pursuant to this subparagraph 3,.3(b) but Live Nation does not give written notice of termination on or before April 1, 2008 (time being of the essence), Live Nation shall irrevocably be deemed to have waived its option to terminate If Live Nation timely exercises its right of termination, this Agreement shall be terminated as of the date that Live Nation provides its written notice of' termination and the provisions of Section 13 1 shall apply. 4. Live Nation's Compensation; City Distributions 4 1 Management Fee (a) As consideration to Live Nation for providing the services herein specified during the Term, Live Nation shall receive from the Net Operating Profit the amounts described in (i) and (ii) below: (i) an annual management fee for each Fiscal Year (but prorated for partial Fiscal Years) in the amount of $400,000 (the "Management Fee"), which Management Fee shall be adjusted upward on January 1, 2009 and on the first day of each Fiscal Year thereafter by two percent (2%); and (ii) as an incentive for Live Nation to operate and manage the Facility in a profitable manner so as to achieve the Required City Distributions and possibly the City Excess Distributions, then after the disbursements of' the Required City Distributions and Excess City Distributions and the Management Fee, Live National shall be entitled to retain the remaining Net Operating Profit for such Fiscal Year (the "Bonus") By March 31 of each calendar year, Live Nation shall provide to City an accounting of the Operating Expenses and Operating Revenues for the prior Fiscal Year and reconciliation of Management Fees, Required City Distribution, Excess City Distributions, and any other disbursements from the Net Operating Revenues for such Fiscal Year (b) The Management Fee shall be payable in equal monthly installments due on or before the last day of each month during each Fiscal Year, and Live Nation shall be entitled to draw such amounts from the account established pursuant to Section 5.3 The Bonus shall be paid to Live Nation from the account established pursuant to Section 5.3 within thirty (30) days following the annual reconciliation made pursuant to subparagraph (a)(ii) (c) Live Nation's right to receive the Management F ee and Bonus are both subject and subordinate to City's rights to receive all amounts pursuant to Sections 4,2, 4 3 and 5..1 Live Nation shall not receive any payments for the Management Fee unless City has received its payments under Sections 4..2 and 4,3.. 4.2. Required City Distribution Live Nation shall distribute to City the Required City Distribution in annual payments in advance, the first of which shall be due and payable thirty (30) days after the Commencement Date and each subsequent instalhnent shall be due on January 1 of each Fiscal Year Such amounts shall be distributed from Operating Revenues if - 20 - and to the extent sufficient funds are available therefor but shall otherwise be paid to City from Live Nation's own funds pursuant to Section 5 1 Each installment of Required City Distributions shall be distributed or paid to City, without setoff, reduction or abatement 4.3 Excess City Distribution. In addition to the Required City Distribution, the City shall receive additional disbursements ("Excess City Distributions") as follows: (a) Ticket Sales. Within sixty (60) days after the conclusion of each full or partial Fiscal Year during the Term, Live Nation shall notify City in writing of the total number of "True Tickets" (hereafter defined) for Events in the Facility during the Fiscal Year or partial Fiscal Year. If the total number of True Tickets exceeds 240,000 True Tickets (but the 240,000 threshold shall be prorated for partial Fiscal Years), then, the notice from Live Nation to City shall be accompanied by a disbursement to the City ("Bonus on Excess Ticket Sales"), in an amount equal to the product of One Dollar ($1..00) multiplied by the total number. of True Tickets in excess of 240,000 (thus for example, if' there were 250,000 True Tickets, the amount would be $10,000). For these purposes, "True Tickets" (or separately, a "True Ticket") shall refer to each ticket sold to a customer for an Event promoted or presented by Live Nation (or its affiliate) during the applicable Fiscal Year, provided such ticket is not for "City Use," "Charitable Use," "City Playground Review Use," "Complimentary Tickets," "School Complimentary Tickets," "Community Needs Auction," "Community Benefit Fund," or for any Event which occurs by reason of any third -party rental of parts or all of the Facility (for purposes of this Section 4.3, a "third party rental" shall mean a rental to any party other than an "affiliate" of' Live Nation and an "affiliate" of Live Nation shall refer to any related entity, subsidiary, or parent entity of Live Nation or Live Nation's parent entity) (b) Bonus on Events Within sixty (60) days after the conclusion of each full or partial Fiscal Year during the Term, Live Nation shall notify City in writing of the total number of Events held in the Facility other than those specifically excluded as hereinafter provided ("True Events"). If the total number of True Events exceeds 173 True Events (prorated for partial Fiscal Years), then the notice fiom Live Nation to City shall be accompanied by a disbursement to City ("Bonus on Events") in an amount equal to the product of' Two Thousand Dollars ($2,000) multiplied by the total number of True Events in excess of 173 (but prorated for partial Fiscal Years) (thus for example, if there were 188 True Events, the amount would be $30,000) (all True Events in excess of 173 are herein referred to as "Bonus Events" or separately as a "Bonus Event") Notwithstanding anything to the contrary contained in this Section, True Events shall not include "City Use," "Charitable Use," "City Playground Review Use," or. "Community Needs Auction.." True Events shall include third party rentals except for third party rentals for which the Facility is used for purposes different from the types of Events promoted or produced by Live Nation (e g , commercial live performances by national or international talent), (c) Amounts to be paid to City pursuant to (a) and (b) above shall be distributed from Operating Revenues if and to the extent sufficient funds are available therefor but shall otherwise be disbursed by Live Nation to City from Live Nation's own funds pursuant to Section 5 1 hereof, All such amounts shall be distributed or paid to City, without setoff; reduction, 01 abatement -21 - (d) At the end of each five (5) year period during the Term, City may request that Live Nation modify the Excess City Distributions under Section 4.3(a) and 4.3(b) to increase the amount payable to City. Live Nation will consider any such request but shall have no obligation to accommodate City's request. 5. Funding; Budgets; Bank Accounts; Alterations 5,1. Live Nation Funding Guaranty Live Nation hereby irrevocably and unconditionally guaranties to City that Operating Revenues shall at all times be sufficient to pay as and when due all Operating Expenses, the Required City Distributions pursuant to Section 4.2, and the Excess City Distributions pursuant to Section 4 3 and all other amounts that Live Nation is obligated to pay pursuant to this Agreement.. Live Nation hereby covenants and agrees that if at any time there are insufficient Operating Revenues to pay all of the foregoing amounts as and when required, Live Nation shall immediately pay the difference from Live Nation's own funds The foregoing obligation is absolute and unconditional and shall apply even if Operating Revenues are reduced or limited by facts or circumstances not contemplated by the parties or for reasons beyond the parties' control.. The foregoing constitutes a guaranty of' payment and not of' collection. To the extent Live Nation makes any such payment, Live Nation shall be entitled to reimbursement from Net Operating Profit as and when sufficient funds are available.. Live Nation agrees, however, that upon any expiration or termination ofthis Agreement, Live Nation shall pay from its own funds all Operating Expenses, Required City Distributions, Excess City Distributions, and all other amounts required to be paid pursuant to this Agreement through the date of expiration or termination (and shall be entitled to reimbursement for any prepaid Required City Reimbursement attributable to periods after the expiration or termination date) From and after the date of expiration or termination, Live Nation shall not be entitled to any reimbursement for any such payments and Live Nation hereby irrevocably waives any right to seek any such reimbursement The provisions of' this Section 5.1 shall survive any expiration or termination ofthis Agreement. 5.2. Non -Funding by City (a) City shall have no obligation to provide funds for the payment of Operating Expenses and shall be entitled to receive the Required City Distributions and the Excess City Distributions from Live Nation even when Operating Revenues are insufficient. (b) City will have no funding or other payment obligations with respect to the Facility or its Operating Expenses or its operations other than the costs of (i) the City Work; (ii) the other costs which City has specifically agreed to pay under the terms of this Agreement; and (iii) if and to the extent incurred, the Operating Expense Exclusions Live Nation and City have entered into this Agreement with the expectation and belief that no governmental body will impose any ad valorem taxes upon the Facility nor any sales, income, excise or. other taxes upon the Required City Distributions or the Excess City Distributions (collectively "Termination Obligations"). In the event any governmental body asserts that any Termination Obligations are due for a Fiscal Year or part thereof; then City shall have the right, at any time thereafter to terminate this Agreement upon not less than thirty (30) days prior written notice to Live Nation ("Termination Notice") In the event City does not exercise its termination right for a Fiscal Year with respect to which Termination Obligations were imposed, City shall nevertheless retain - 22 - its right of'tetmination and may elect to terminate in the event that any Termination Obligations are imposed with respect to any subsequent Fiscal Year (i e.., waiver of teimination with respect to any particular Fiscal Year shall not constitute waiver for any subsequent Fiscal Year), If City exercises its termination option, the following shall occur: (a) this Agreement shall terminate upon the date specified by City in the Termination Notice; (b) Live Nation shall pay all amounts owed under this Agreement through the date of termination including all Operating Expenses and the Required City Distribution and Excess City Distributions (including any amounts required to be advanced by Live Nation pursuant to Section 5..1); and (c) City shall pay to Live Nation a "Tetmination Payment" as hereafter defined The Termination Payment shall be an amount equal to the unamortized hard and soft costs of the Upgrades as of'the Termination Date The unamortized cost shall be determined by amortizing the total costs (up to but not exceeding $3,500,000) paid or incurred by Live Nation for the Upgrades on a straight line basis (without interest) over the period from the date when the costs were incurred over the then -remaining Ierm of this Agreement. Live Nation shall be entitled to the Teimination Payment only if this Agreement is terminated pursuant to this Section 5 2(b) or Section 3,.3(a) or Section 15„5(c) and not if termination occurs for any other reason If the City terminates this Agreement as provided above, then in addition to the payment of' the Termination Payment the City shall reimburse to Live Nation that portion of the Required City Distribution which has been prepaid by Live Nation for the remainder of the Fiscal Year, with the reimbursement and the payment of' the Teimination Payment to be made within thirty (30) days after the teimination date The provisions of' this Section regarding the above reimbursement and payment obligations of the City shall survive the termination of this Agreement 53, Receipts and Disbursements. Live Nation shall establish and maintain in one or more depositories one or more operating, payroll and other bank accounts for the promotion, operation and management of the Facility, as Live Nation shall determine All Operating Revenues collected by Live Nation from the operation of the Facility shall be deposited into the accounts and all Operating Expenses shall be paid by Live Nation as agent for the City from the accounts Any amotmts remaining in the Operating Accounts upon termination of' this Agreement for' any reason, after payment of all Operating Expenses, Required City Distributions and any Excess City Distributions and all other amounts that Live Nation is required to pay under this Agreement through the date of expiration or termination shall be promptly paid to Live Nation. 5.4. Alterations. (a) Live Nation shall not make any additions, improvements, or alterations (collectively "Alterations") to the Facility without City Manager's prior written consent, except, however, that City Manager's consent shall not be required with respect to (i) the Upgrades to be made by Live Nation pursuant to subparagraph 5,4(b)(ii) below; or (ii) Alterations required by Governmental Requirements; or (iii) nonstructural Alterations that are not visible fiom the exterior and do not in the aggregate cost more than $400,000 for' a specific project.. The costs of all Alterations made by Live Nation for purposes of complying with Governmental Requirements or that are necessary for the maintenance of' the Facility shall be Operating Expenses.. The costs of all other' Alterations made by Live Nation shall be borne solely by Live Nation from its own funds and shall not constitute Operating Expenses City Manager shall not unreasonably withhold, condition or delay his/her its consent to any Alterations except that City - 23 - Manager may withhold its consent in its sole and absolute discretion with respect to any Alterations that change the structural elements or life-saving systems or that affect the exterior of the Facility.. Notwithstanding anything to the contrary, however, Live Nation shall not under any circumstances be permitted to make any Alterations that: (i) adversely affect the structural portions of the Facility, or (ii) fail to comply with any applicable Governmental Requirements, or (iii) interfere in any material manner with the proper functioning of any mechanical, electrical, plumbing, HVAC, life safety or other systems, facilities or equipment of the Facility. (b) The parties agree that the following work will be done by the respective parties at their sole cost and expense and not as part of Operating Expenses: (i) Live Nation covenants and agrees to perform the remodeling, upgrade and improvements to the Facility as more particularly described in Exhibit "C" (such work is herein referr'ed to as the "Upgrade" or "Upgrades") pursuant to the following terns: Concept plans shall be submitted by Live Nation to City Manager for his/her consent (not to be unreasonably withheld, conditioned, or delayed) not later than ninety (90) days after the date of this Agreement (whereupon same shall be deemed a part hereof) (the "Concept Plans"). The Concept Plans shall be consistent with Exhibit "C" in all respects and with the purposes, rights and obligations under this Agreement and shall generally reflect, but not necessarily to scale and without the level of detail and specifics found in final plans and specifications, the overall anticipated scope of Upgrades to be constructed by Live Nation. Prior to submitting an application for a building permit for Upgrades) Live Nation shall develop or cause to be developed construction plans and specifications, which shall be consistent with the Concept Plans approved by City Manager (collectively, the "Plans") The Plans shall include all of the specific capital improvements described on Exhibit "C," all of'which Live Nation shall complete on or before December 31, 2009, subject to the terms of this subparagraph 5.4(b)(i), Live Nation shall expend not less than $3,500,000, including both hard costs and soft costs (the "Cap") to complete the Upgrades; provided, however, Live Nation agrees to complete the Upgrades in the order of priority shown on Exhibit "C " Accordingly, the Cap shall first be expended towaads Priority 1 until completed, then Priority 2 until completed, etc„ Notwithstanding anything to the contrary, upon achieving the Cap, Live Nation will be deemed to have satisfied its obligations hereunder with respect to the Upgrades even if all Upgrades have not then been completed The parties agree that prosecution of the Upgrades may proceed in phases calculated to minimize interference with portions of the Facility so as to allow the continued use of the Facility for the permitted uses throughout the prosecution of the Upgrades as Live Nation shall determine, in its sole discretion, from time to time. Live Nation will obtain the approval of final Plans by any and all federal, state, municipal and other governmental authorities, offices and departments having ,jurisdiction in the matter, as required and necessary Live Nation will complete all Upgrades in a good and workmanlike manner and in accordance with all applicable Governmental Requirements Any general contractor performing any Upgrades shall be subject to approval by City Manager, such consent not to be unreasonably withheld, conditioned or delayed (ii) The following will be considered "City Work": all work as described in and subject to the terms of Exhibit "B" attached hereto and made a part hereof, The City Work shall be performed and completed by City pursuant to a schedule as agreed upon by City Manager and Live Nation and in such a manner as to not cause unreasonable interference or - 24 - delay in Live Nation's performance of the Upgrades, but in any event the City Work shall be completed by the dates set forth on Exhibit "B." (c) Live Nation shall obtain all required permits for Upgrades and all other Alterations performed by, through or under Live Nation and shall perform or cause to be performed such Alterations in compliance with all Governmental Requirements Under no circumstances shall Live Nation make any Alterations which incorporate any Hazardous Substances including, without limitation, asbestos -containing construction materials, into the Facility, Any request for City Manager's consent to any proposed Alterations by, through or under Live Nation shall be made in writing and shall contain plans or other written materials describing the work in detail reasonably satisfactory to City Manager, provided that architectural plans shall not be required unless requir ed for the issuance of a building permit, City Manager shall provide or deny consent within twenty (20) business days following receipt of Live Nation's written request, the failure to provide or deny consent within such twenty (20) business day period shall be deemed a consent, Should the work proposed by Live Nation and consented to by City Manager modify the basic floor plan of the Facility and the building permit therefor require architectural plans, then Live Nation shall, at its expense, furnish City with as -built drawings and CAD disks for such work.. Unless City Manager otherwise agrees in writing, all Alterations made or affixed to the Facility (excluding moveable trade fixtures, equipment, personal property and furniture) (including without limitation, all Upgrades constructed pursuant to subparagraph (b)), shall become the property of City and shall be surrendered with the Facility at the expiration or termination of this Agreement With respect to Alterations costing in excess of $200,000 City Manager may require Live Nation to obtain a payment bond for the work. 6. Records, Audits and Reports, 6 1 Records and Audits, (a) Live Nation shall keep full and accurate accounting books and records relating to all Operating Revenues and Operating Expenses and all 'True Tickets sold and True Events held, all in accordance with generally accepted accounting principles. Live Nation shall give the City's authorized representatives access to such books and records during reasonable business hours and upon reasonable advance notice. All books and records shall be made available on-site at the Facility or electronically Live Nation shall keep and preserve for at least three (3) years following each Fiscal Year or for as long as such records are required to be retained pursuant to Florida Public Records Law, all sales slips, rental agreements, purchase order, sales books, credit card invoices, bank books or duplicate deposit slips, and other evidence of Operating Revenues and Operating Expenses for such period In addition, on or before March 31 following each Fiscal Yea' (commencing March 31, 2008), Live Nation shall furnish to the City a line item (i.e , by categories) statement of Operating Costs and Operating Revenues (and profit or loss) for the Facility for the preceding Fiscal Year and including the number of True Tickets sold and True Events held, prepared in accordance with generally accepted accounting principles certified as accurate by Live Nation's Chief Accounting Officer or Chief' Financial Officer (b) City Manager shall have the right at any time, and from time to time, to cause independent auditors or City's own accountants or auditors to audit all of the books of Live -25 - Nation relating to Operating Revenues, Operating Expenses, True Tickets and True Events including, without limitation, cash register tapes, credit card invoices, duplicate deposit tapes, and invoices. No costs incurred by the City in conducting such audit shall be considered an Operating Expense. The City's right to have an audit made with respect to any Fiscal Year and Live Nation's obligation to retain the above records shall expire three (3) years after Live Nation's statement for such Fiscal Year has been delivered to the City. 6.2.. Annual Plan. Commencing March 1, 2008, Live Nation shall provide to the City on or before March 1 of each year, an annual management plan, which shall include the annual operating budget for the then current Fiscal Year but may not have a complete booking plan. The annual plan shall include information regarding Live Nation's anticipated operations for such Fiscal Year, including planned operating and maintenance activities, anticipated capital improvements and capital equipment purchases and an anticipated budget therefor, anticipated Events at the Facility (to the extent known at such time), and planned equipment and furnishings purchases. Live Nation shall have the right from time to time to make any changes it deems necessary or appropriate to any such annual plan so long as the annual plan is consistent with Live Nation's fulfillment of its obligations hereunder 7„ Employees. 7 1 Live Nation Employees (a) Live Nation shall select, train and employ at the Facility such number of employees as is necessary or appropriate for Live Nation to satisfy its responsibilities hereunder; Live Nation shall recruit employees consistent with standards employed at comparable fist class facilities operated by Live Nation on the Commencement Date, and Live Nation shall have authority to hire, terminate and discipline any and all personnel employed by Live Nation working at the Facility. (b) Live Nation shall assign to the Facility a competent full-time general manager experienced in operating and managing similar facilities, who will be located full time on-site during the Term From time to time the general manager may provide assistance in connection with consulting and/or management services provided by Live Nation or any of its Affiliates at other facilities managed, owned or leased by Live Nation or any of its Affiliates so long as such assistance does not affect in any material respect the responsibilities and duties of the general manager to the Facility. Prior to Live Nation's appointment of' the general manager, Live Nation shall consult with the City Manager with respect to the qualifications of the general manager proposed by Live Nation.. The general manager shall be accessible to City Manager or designee at all reasonable times to discuss the management, operation and maintenance of the Facility. "Accessible" shall mean available either in person, by telephone arid/or e-mail during business and/or operation hours and within a reasonable time fi ame during non -business hours in the event of emergency Consistent failure by the general manager to be accessible shall be reported to Bruce Eskowitz and/or ,Tames Tucker or their successors and if not rectified shall be grounds for replacement of the general manager City Manager may also request that general manager be replaced for other reasons and Live Nation shall duly consider all such requests but shall not be obligated to replace the genet al manager. - 26 - (c) The general manager and/or any and all other Live Nation employees at the Facility shall not for any purpose be considered to be employees of' the City, and Live Nation shall be solely responsible for their supervision and daily direction and control and for setting and paying as an Operating Expense their compensation (and federal income tax withholding) and any employee benefits. 7.2. No Solicitation or Employment by City During the period commencing on the date hereof' and ending one (1) year after the expiration or termination of this Agreement, except with Live Nation's prior written consent, the City will not, for any reason, solicit for employment, or hire, any of the senior management personnel employed by Live Nation at the Facility, including, without limitation, the general manager, director -level employees and department heads (including, without limitation, the food and beverage manager'). In addition to any other remedies which Live Nation may have, specific performance in the form of injunctive relief shall be available for the enforcement of' this provision. 8. Indemnification and Insur ante 8.1 Indemnification (a) Live Nation shall indemnify, hold harmless and defend (with counsel approved by City Attorney) the City, its officers; agents, servants and employees from and against any and all claims, liabilities, demands, causes of' action, costs and expenses (including reasonable attorneys' fees at trial and all levels of' appeal) of whatsoever kind or nature ("Claims") arising out of (i) error, omission or negligent act or willful misconduct of' Live Nation, its agents, servants, contractors, or employees; (ii) any default by Live Nation under this Agreement; or (iii) any other claim arising, directly or indirectly, from the operation or management of the Facility or any Event held therein or rental or use of the Facility; provided that there is expressly excluded from the foregoing obligations any Claims to the extent resulting from the acts or negligence of the City, its officers, agents (excluding Live Nation), contractors (excluding Live Nation) and employees or the use of the Facility by the City, its officers, agents (excluding Live Nation), and employees (b) The provisions of this Section 8.1 shall survive expiration or termination of this Agreement.. 8..2. Liability Insurance (a) Live Nation shall secure (and deliver to City Manager certificates thereof) prior to the Commencement Date and shall keep in force at all times during the Tenn of this Agreement a commercial liability insurance policy, including public liability and property damage, covering the Facility and the operations hereunder, in the amount of' Ten Million Dollars ($10,000,000 00) for bodily injury and Five Million Dollar's ($5,000,000.00) for property damage, including products and completed operations and independent contractors. Live Nation shall also maintain Umbrella liability insurance with a limit of Twenty Million Dollars ($20,000,000) (b) Live Nation shall also maintain during the Term Comprehensive Automotive Bodily Injury and Property Damage Insurance for business use covering all vehicles - 2 7 - operated by Live Nation officers, agents and employees in connection with the Facility, whether owned by Live Nation, the City, or otherwise, with a combined single limit of not less than Two Million Dollars ($2,000,000.00) per. occurrence (including an extension of hired and non -owned coverage) (c) Commencing with the Commencement Date of the Term and continuing thereafter during the Term hereof, Live Nation shall also maintain: (i) contingent liquor liability insurance in the amount of Five Million Dollars ($5,000,000 00); and (ii) personal advertising liability insurance in the amount of Two Million Dollars ($2,000,000 00). (d) Live Nation shall be the named insured under all such policies. The City shall be an additional insured under the insurance policies described in Section 8.2(a), (b) and (c), above, as its interests may appear, and all of the insurance policies described in this Section 82 shall contain a provision covering the indemnification liabilities hereunder. 8.3. Worker's Compensation Insurance Live Nation shall at all times maintain worker's compensation insurance (including occupational disease hazards) with an authorized insurance company or through the Florida State Compensation Insurance Fund or through an authorized self-insurance plan approved by the State of Florida, insuring its employees at the Facility in amounts equal to or greater than required under law The foregoing is not intended to require Live Nation to cover occupational related diseases of any City employees who provide any services at the Facility as a part-time employee of Live Nation except to the extent that such disease is demonstrated to be directly related to their work at the Facility. 8.4. Property Insurance (a) Property Insurance Live Nation shall maintain in hill force and effect during the entire Term insurance on the Facility (including, without limitation, all Alterations) and all fixtures, equipment and personal property at the Facility under an "All Risks of Physical Loss" policy (hereinafter referred to as "All Risks") including, without limitation, coverage for loss or damage by fire, water, windstorm, flood, subsidence and sprinkler damage; such insurance to be written with full replacement coverage (the "Replacement Value"), i.e., in an amount equal to the greater of (1) 100% of the full costs of replacement of the Facility and such fixtures, equipment and personal property (less the cost of excavations, foundations and footings), or (2) an amount sufficient to prevent City from becoming a co-insurer of any loss under the applicable policy, the insurance company's determination of the amount of' coverage required in clause (1) above shall be binding and conclusive on City and Live Nation for purposes of' the coverage required by clause (1) If not otherwise included within the "All Risks" coverage specified above, Live Nation shall carry or cause to be carried, by endorsement to such "All Risks" policy, coverage against damage due to water and sprinkler leakage, flood and collapse. - 28 - (b) Builder's Risk. Live Nation shall also carry Builder's Risk Insurance during any period of construction or improvements or Alterations by, through or under Live Nation.. 8..5.. General Requirements, All insurance provided for in this Article 8 shall be in such form and shall be issued by such responsible insurance companies licensed to do business in the State of Florida with companies having a rating of A-7 or better in Best's Insurance Guide as published by A.M. Best and Company. Such insurance may be carried under blanket policies that include other properties so long as the policies provide separate coverage for the Facility. Upon the execution of this Agreement, and, thereafter, not less than thirty (30) days prior to the expiration dates of the expiring policies required pursuant to this Article 8, originals of the policies or certificates or renewal certificates, as the case may be, bearing notations evidencing the payment of premiums or accompanied by other evidence reasonably satisfactory to City of such payment, shall be delivered by Live Nation to City and any fee mortgagee., All policies of insurance provided for in Section 8 4 shall name City as an insured party and loss payee and City shall be entitled to all proceeds thereof, Each policy of insurance required to be carried pursuant to the provisions of Article 8 shall contain (i) a provision that no act or omission of City or Live Nation shall affect or limit the obligation of the insurance company to pay the amount of any loss sustained, (ii) an agreement by the insurer that such policy shall not be cancelled, modified or denied renewal without at least thirty (30) days prior written notice to City, (iii) a waiver of subrogation by the insurer, and (iv) deductibles which do not exceed deductions for similar facilities.. All insurance procured by Live Nation in accordance with the requirements of this Agreement including insurance provided under 8.2, 8.3 and 8.4 shall be primary over any insurance carried by the City and not require contribution by the City 8.6 Certain Other Insurance. If any of the City Agreements with third parties consist of agreements with independent contractors to provide services in respect of the Facility, the City shall use reasonable efforts to cause such contractors to name Live Nation as an additional insured under any insurance maintained by such contractors pursuant to the terms of such City Agreements and in such event to deliver to Live Nation promptly after request therefor a certified copy of'the policy and a certificate evidencing the existence thereof' In addition, if Live Nation enters into any agreements during the term of this Agreement with any independent contractors for the provision of services hereunder, Live Nation shall require the contractors to name Live Nation and City as additional insureds under any insurance required by Live Nation thereunder and to deliver to Live Nation and City prior to the performance of' such services a certificate evidencing the existence thereof' 9. Ownership of Assets 9.1. Ownership., The ownership of the Facility and all buildings and real estate, all existing (and replacements thereof) technical and office equipment and facilities, furniture, displays, fixtures, vehicles and similar tangible property located at the Facility shall remain with the City. Ownership of and title to all intellectual property rights of'whatsoever value held in the City's name shall remain in the name of the City The ownership of consumable assets (such as office supplies and cleaning materials), personal property, equipment and fixtures purchased - 29 - with Operating Revenues or City funds shall remain with the City, but such assets purchased with Operating Revenues may be utilized and consumed by Live Nation in the performance of services under this Agreement.. The ownership of data processing programs and software owned by the City shall remain with the City, and the ownership of data processing programs and software owned by Live Nation shall remain with Live Nation„ Live Nation shall not take or use, for its own purposes, customer lists or similar materials developed by the City for the use of' the Facility, unless written consent is granted by the City Manager Ownership of equipment, furnishings, materials, or fixtures not considered to be real property purchased by Live Nation with Operating Revenues for use at and for the Facility shall vest in the City automatically and immediately upon purchase or acquisition, except for those items which by the terms of this Agreement shall remain the property of Live Nation the assets of the City as described herein shall not be pledged, liened, encumbered or otherwise alienated or assigned. Notwithstanding anything to the contrary contained in this Agreement, any personalty, furnishings, and movable equipment that is not a fixture and is not integral to the operation of' the Facility purchased by Live Nation and used at the Facility shall be the sole property of Live Nation 9.2. City Obligations. Except as otherwise set forth in this Agreement, throughout the Term, the City will maintain full beneficial use and ownership of the Facility and will pay, keep, observe and perform all payments, terms, covenants, conditions and obligations under any bonds, debentures or other security agreements or contracts r elating to the Facility to which the City may be bound In addition, the City shall provide Live Nation with necessary office space in the Facility and such equipment as is currently available in the Facility. Furthermore, the City (in its proprietary capacity) shall allow Live Nation unrestricted egress and ingress to the Facility and Live Nation shall have the right to park at no cost in the parking spaces that are included within the meaning of the "Facility" as defined herein. Except as defined as part of the Facility, all parking lots and garages adjacent to the Facility are excluded from the scope of this Agreement Notwithstanding anything to the contrary contained herein, in order to promote the most profitable operation of' the Facility, City hereby acknowledges and agrees that Live Nation will have exclusive control over the use of the Facility during the Term, subject to the conditions and limitations of' this Agreement 10. Assignment; Affiliates 10.1 Assignment, (a) Except as otherwise specifically provided in this Section 10 1, Live Nation may not voluntarily or by operation of law, assign, encumber, pledge or otherwise transfer all or any part of Live Nation's interest in this Agreement (except that Live Nation may encumber, pledge or otherwise transfer its proceeds and distributions under this Agreement and may encumber, pledge or otherwise tr ansfer its interests under this Agreement provided that no other person or. entity may operate or manage the Facility as a result of any such encumbrance, pledge or other transfer or the foreclosure of any security interest) or subcontract its management duties hereunder without City's prior written consent, which may be granted or. withheld in City's sole and absolute discretion. Any attempt by Live Nation to assign all or any part of its interest and any attempt to subcontract its management duties hereunder without first having obtained City's prior written approval (except as otherwise specifically provided in this Section 10,1) shall be void and of' no force or effect In the event of any assignment, transfer, encumbrance or - 30 - subcontract, Live Nation shall nevertheless remain liable for all obligations hereunder and the transferee shall be jointly and severally liable for all obligations thereafter arising under this Agreement., Any transfer of a controlling interest in Live Nation (whether in a single transaction or multiple transactions) shall be considered an assignment of this Agreement. Live Nation specifically recognizes that City selected Live Nation to be the manager of the Facility as a result of the City's evaluation of Live Nation's specific qualifications and experience in operating similar first class facilities (b) Notwithstanding anything to the contrary contained herein, Live Nation shall have the right to assign or transfer this Agreement without the necessity of City's consent to an Affiliate that has Tangible Net Worth of not less than Twenty -Five Million Dollars ($25,000,000) provided that Live Nation and Affiliate execute and deliver to City an agreement pursuant to which the Affiliate assumes all obligations under this Agreement arising subsequent to the assignment or transfer and Live Nation acknowledges that it remains jointly and severally liable for all such obligations (c) Live Nation shall also have the right to assign or transfer this Agreement to any of the following (each a "Transferee"): (i) a successor entity arising fiom the purchase of, or merger or consolidation with Live Nation; or (ii) an entity that purchases substantially all of the assets of Live Nation, provided in either case all of the following conditions are met: 1 The Transferee has a Tangible Net Worth in excess of $25,000,000; 2, simultaneous with the transfer, the Transferee is acquiring not less than five (5) other live entertainment venues owned or operated by Live Nation or its Affiliates; 3, The Transferee has not less than five (5) years' experience in operating similar live entertainment venues internationally, nationally or regionally (meaning operating not less than five (5) live entertainment venues in multiple states or countries during such five (5) year period); 4 Live Nation and the Transferee shall execute an instrument pursuant to which the Transferee assumes all obligations thereafter arising and Live Nation acknowledges its joint and several liability for all such obligations; 5 In City Manager's reasonable determination, the Transferee has a good reputation for operating venues similar to the Facility and is an appropriate manager and operator for the Facility. City Manager shall advise Live Nation in writing whether or not this condition 5 has been met - 31 - within sixty (60) days after having received such information as City Manager shall reasonably request to make the determination If Manager does not advise Live Nation that the Transferee is unacceptable within such sixty (60) day period, time being of the essence, this condition 5 shall be deemed satisfied., In the event City Manager advises Live Nation in writing ("Manager's Notice") that this condition 5 has not been met and, if' conditions 1, 2 and 3 have been met, then and in that event, Live Nation shall have the right to terminate this Agreement by written notice ("Termination Notice") to City Manager given within thirty (30) days after the date of Manager's Notice, time being of the essence, Live Nation's failure to deliver the Termination Notice within thirty (30) days after Manager's Notice shall irrevocably constitute Live Nation's waiver of its right to terminate. If Live Nation timely delivers its Termination Notice, then and in that event, all of the following shall apply: (A) Live Nation shall continue as operator and manager under this Agreement and shall pay all amounts and perform all obligations hereunder until six (6) months thereafter or' until City advises Live Nation to cease its operations (the earlier of such dates "Termination Date"); (B) Live Nation shall vacate the Facility and return it to City on the Termination Date and all provisions of Section 13.1 shall apply; provided, however, Live Nation shall not be entitled to a return of any prepaid Required City Distributions (it being agreed that such prepaid amounts shall constitute a termination payment to City).. (d) The provisions of subparagraph (a) above shall not prevent Live Nation in the performance of its management duties hereunder to grant licenses and concessions and rental agreements for Events and entering into a concessions agreement for the concession operations at the Facility 10 2. Live Nation Affiliates. (a) Iransactions with Affiliates. In connection with its management responsibilities hereunder relating to the purchase and/or procurement of equipment, materials, supplies, inventories, and services for the Facility, Live Nation shall have the right, but not the obligation, to purchase and/or procure from, or otherwise transact business with, an Affiliate of Live Nation. (b) Conflicts of Interest; Non -Compete The City acknowledges that Live Nation manages other public assembly facilities which may, from time to time, be in competition with the Facility. The management of competing facilities will not be deemed a conflict of interest or breach of Live Nation's duties hereunder; provided, however, Live Nation agrees that neither Live Nation nor any of its Affiliates shall own, operate or lease an indoor live music entertainment venue with a capacity of 2,500 — 3,000 within a twenty (20) mile radius of the -.32 - Facility, but the foregoing restriction does not preclude providing booking services and Live Nation shall be permitted to provide booking services without restriction nor docs the foregoing restriction apply to operations of Live Nation or its Affiliates in existence as of the Effective Date., In addition to any other remedies that City may have for violation of this subparagraph 10.2(b), City shall be entitled to specific performance, injunctive relief; and other remedies available at law or in equity City agiees that Live Nation may operate competing businesses or activities (including, without limitation, providing services as are required under this Agreement) except to the extent specifically provided in this Section 10,2(b) and City waives any rights to object thereto., Notwithstanding anything to the contrary contained in this Agreement, City hereby acknowledges and agrees that to the maximum extent permitted by law, City waives any implied duty of loyalty or cane arising under agency law out of an agency relationship, and in the event the foregoing waiver is not allowed by law or is limited by law City hereby agrees that such implied duties are hereby modified to the maximum extent allowed by law to allow for Live Nation to compete in any business activity or venture without a duty to City of loyalty or care; provided the foregoing waiver and modification shall not release Live Nation from the restriction set forth in this subparagraph 10.2(b) at from any other provisions of this Agreement, 11. Laws and Permits 11.1 Permits, Licenses, Taxes and Liens Live Nation shall procure any and all permits and licenses required for the performance of its duties hereunder and for the operation of the Facility and for the conduct of'Events in Facility City in its proprietary capacity shall cooperate with Live Nation in applying for such permits and licenses Live Nation shall deliver copies of' all such permits and licenses to the City Manager. Live Nation shall pay promptly, out of' the Operating Revenues, all sales taxes, excises, license fees and permit fees of whatever nature arising from its operation, promotion and management of the Facility.. Live Nation shall not permit any mechanic's or materialman's or any other lien to become attached to the Facility, or any part or parcel thereof; by reason of' any work or labor performed or materials furnished by any mechanic or materialman, so long as the work, labor or material was provided by, through, or under Live Nation, Live Nation shall cause all obligations for payment for work performed on services furnished to the Facility by, through or under Live Nation to be paid as and when due 11 2, Government Compliance. Subject to the terms of this Agreement, Live Nation, its officers, agents and employees shall comply with all Governmental Requirements with respect to the operation, management and maintenance of' the Facility The foregoing includes the obligation to make improvements or Alterations (structural and non-structural, and capital and non -capital) as required by governmental authorities, the cost of which shall be included in Operating Expenses. Live Nation shall require any licensee, promoter or user of any portion of the Facility to comply, and to be financially responsible for compliance, with all Governmental Requirements, Notwithstanding anything to the contrary contained in this Agreement, Live Nation shall not be obligated 01 liable for any matter which is an Operating Expense Exclusion 11 3, No Discrimination in Employment; Affirmative Action. In connection with the performance of work under this Agreement, Live Nation shall not refuse to hire, discharge, refuse to promote or demote, or to discriminate in matters of' compensation against, any person -33 - otherwise qualified, solely because of race, color, religion, gender, age, national origin, military status, sexual orientation, marital status or physical or mental disability., 12. Events of Default and Remedies 12 1. Live Nation's Defaults, The occurrence of any one or more of the following events shall constitute an Event of Default by Live Nation (a) The failure by Live Nation to make any payment required to be made by Live Nation as and when due, which continues for more than ten (10) days after written notice from City (including without limitation any Required City Distributions and Excess City Distributions (whether to be paid pursuant to Sections 4.2 and 4 3 or 5.1); (b) The failure or inability by Live Nation to observe or perform any of' the covenants or provisions of this Agreement to be observed or performed by Live Nation, other than as specified in other subparagraphs of this Section 12 1, which continues for more than thirty (30) days after written notice from City Manager; provided, however, if' the nature of the failure is such that more than such period is reasonably required for its cure, then Live Nation shall not be deemed to have committed an Event of Default if Live Nation commences the cure within such period and thereafter diligently pursues the cure to completion and actually completes the cure within an additional sixty (60) day period; (c) Except as permitted pursuant to Section 10.1 of' this Agreement, the assignment, encumbrance, pledge, or transfer of this Agreement, whether voluntarily or by operation of' law, or any subcontract of Live Nation's duties hereunder, which continues for more than fifteen (15) business days after written notice thereof' from City Manager; (d) Live Nation's failure to provide and maintain the letter of credit required by Section 14.2 hereof' during any period in which Live Nation has not satisfied the Net Worth Requirement set forth in Section 14..1 if such failure continues for more than thirty (30) days after written request from City Manager that the letter of credit be provided; (e) (i) The making by Live Nation of any general assignment for the benefit of creditors; (ii) the filing by or against Live Nation of a petition to have Live Nation adjudged a Chapter 7 debtor under the Bankruptcy Code or to have debts discharged or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of' a petition filed against Live Nation, the same is dismissed within sixty (60) days); (iii) the appointment of' a trustee or receiver to take possession of substantially all of Live Nation's assets located at the Facility or of'Live Nation's interest in this Agreement, if' possession is not restored to Live Nation within sixty (60) days; or (iv) the attachment, execution or other judicial seizure of' substantially all of Live Nation's assets located at the Facility or of Live Nation's interest in this Agreement, where the seizure is not discharged within sixty (60) days.. 12.2. Citv's Remedies (a) If an Event of Default by Live Nation occurs, then in addition to any other remedies available to City, City may exercise the following remedies: -34- (i) City may terminate this Agreement by written notice to Live Nation, in which case this Agreement shall terminate and Live Nation shall immediately surrender possession of the Facility to City. Upon termination, City shall be entitled to recover from Live Nation: (1) Operating Expenses that remain unpaid through the date of termination, (2) all Required City Distributions and Excess City Distributions that remain unpaid through the date of termination, (3) all other amounts that Live Nation is required to pay under this Agreement through the date of termination, plus (4) as agreed and liquidated damages ("Liquidated Damages"), a sum equal to all Required City Distributions that would have been received by City for the period f'iom the date of termination through the end of the Term ( or, if the renewal option has been exercised, through the end of the Renewal Term) if the termination had not occurred, reduced, however, to present value by applying a 4% discount rate Live Nation and City recognize that the City's damages in case of any such termination will be substantial but are incapable of exact ascertainment and they have agreed that such Liquidated Damages are fair and reasonable and not a penalty, (ii) City may seek specific performance of any of Live Nation's obligations hereunder or seek injunctive relief; (iii) City niay exercise any other remedies available at law or in equity. (b) The various rights and remedies reserved to City in this Agreement or otherwise shall be cumulative and, except as otherwise provided by Florida law, City may pursue any or all of its rights and remedies at the same time 12 3 City's Defaults The occurrence of any one or more of the following events shall constitute an Event of Default by City: (a) The failure by City to make any payment required to be made by City as and when due, which continues for more than ten (10) days after written notice of default from Live Nation; (b) The failure or inability by City to observe or perform any of the covenants or provisions of this Agreement to be observed or performed by City, other than as specified in subparagraph (a) of this Section 12 4, which continues for more than thirty (30) days after written notice from Live Nation; provided, however, if the nature of the failure is such that more than such period is reasonably required for its cure, then City shall not be deemed to have committed an Event of Default if City commences the cure within such period and thereafter diligently pursues the cure to completion and actually completes the cure within an additional sixty (60) days. 12,4 Live Nation's Remedies Ifan Event of Default by City occurs, then Live Nation may exercise either of the following remedies: (a) Live Nation may terminate this Agreement by written notice to City, in which case this Agreement shall terminate and Live Nation shall immediately surrender possession of the F acility to City. Upon termination, Live Nation shall be entitled to recover from City all amounts owed by City to Live Nation as of'the termination date and the provisions of' Section 13 1 shall apply; or - 35 - (b) Live Nation may exercise any other remedies available at law or in equity The various rights and remedies reserved to Live Nation in this Agreement shall be cumulative and, except as otherwise provided by Florida law, Live Nation may pursue any of its rights and remedies at the same time 12,5 Late Payments, Any payment owed to City or Live Nation under this Agreement including, without limitation, any Required City Distribution (whether pursuant to Section 4„2 or 5.1) or Excess City Distribution (whether pursuant to Section 4.3 or 5,1) or Liquidated Damages payment (pursuant to 12 2) or any other payment owed to City or Live Nation under this Agreement that is not received by City or Live Nation within len (10) days following notice of' such amount being due shall bear interest at the rate of' 15% per annum ("Default Rate") from the date due until fully paid, 13. Termination.. 13 1 Effect of Termination In the event this Agreement expires or is terminated for any reason, (a) all Operating Expenses, Required City Distributions, Excess City Distributions, and all other obligations for the period up to the date of' expiration or termination shall be paid using funds on deposit in the account(s) described in Section 5.6 and to the extent such funds are not sufficient, Live Nation shall pay all such amounts pursuant to Section 5 1, and (b) after all amounts referenced in subparagraph (a) have been paid, Live Nation may retain all remaining Operating Revenues. Upon the expiration of this Agreement or a termination for any reason, all further obligations of the parties hereunder shall terminate except for the obligations which for all periods up to the date of' expiration or termination and such other obligations as are stated to survive or be performed after such expiration or termination Live Nation shall be entitled to a Termination Payment only if' termination occurs pursuant to Section .3.3(a), Section 5.2(b) or Section 15 5(c) Further, if this Agreement is terminated pursuant to Sections 3 3(a), 3..3(b), 5.2(b) or 15.5(c), the City shall also reimburse to Live Nation that portion of' the Required City Distribution which has been prepaid by Live Nation for the remainder of the Fiscal Year. All of' the foregoing reimbursement and the payment obligations are to be made within thirty (30) days after the Termination Date. The provisions of this Section regarding the above reimbursement and payment obligations of the City shall survive the termination of this Agreement.. 1.3 2. Surrender of Facility Upon termination of this Agreement (termination shall, for all purposes in this Agreement, include termination pursuant to the terms of Section 12 or pursuant to any other provision of this Agreement and any expiration of' the Term), Live Nation shall surrender and vacate the Facility upon the effective date of such termination The Facility and (as required under this Agreement) all equipment and fiurnishings shall be returned to the City in a good and clean condition consistent with other similar first class facilities operated by Live Nation and its Affiliates as of the Commencement Date and in compliance with all Governmental Requirements, ordinary wear and tear, and casualty loss excepted.. 14. Net Worth Requirement; Security 14.1 Net Worth Requirement. Live Nation covenants and agrees that during the entire Term, Live Nation shall at all times maintain a Tangible Net Worth of not less than Twenty -Five Million Dollars ($25,000,000) On or before January 31 of each Fiscal Year, Live - 36 - Nation shall cause its Chief Financial Officer or Chief Accounting officer to deliver to City a certificate ("Net Worth Certificate") addressed to City certifying that Live Nation's Tangible Net Worth does or does not exceed Twenty -Five Million Dollars ($25,000,000), City shall have the right at any time within ninety (90) days after receipt of the Net Worth Certificate to have its accountant or designees review the financial statement and other records of Live Nation at Live Nation's headquarters to confirm the accuracy of the Net Worth Certificate (and Live Nation shall cooperate with any such review and provide any information reasonably requested by such accountants or designees) City's accountants or designees shall not keep copies of any of Live Nation's financial statements or records and any personal notes taken shall comply to the extent necessary to maintain the statutory exemption for "personal notes" under Chapter 119, Florida Statutes, as same may be amended from time to time)., In the event that the Net Worth Certificate reflects that Live Nation's Tangible Net Worth is less than Twenty -Five Million Dollars or in the event City Manager sends written notice to Live Nation that City's accountants or designees have been unable to confirm that Live Nation's Tangible Net Worth exceeds Twenty -Five Million Dollars, then, in either such case, a "Net Worth Deficiency" shall exist Within thirty (30) days following the occurrence of a Net Worth Deficiency and written request from City Manager that a letter of credit be provided, Live Nation shall obtain and deliver to City Manager a letter of credit in full compliance with Section 14 2 below, failing which an Event of Default by Live Nation shall have occurred under this Agreement and City may exercise all remedies available to City under Section 12 2 14.2.. Security. Upon the occurrence of a Net Worth Deficiency, Live Nation shall, within thirty (30) days after demand or request by City Manager, deliver to City a clean, irrevocable letter of credit (the "Lettei of Credit") established in City's favor an amount equal to One Million Dollars ($1,000,000) (the "Letter of Credit Amount"), issued by a federally insured banking or lending institution with a bond rating substantially equal to that of JP Morgan Chase Bank, NA or Bank of America as of the date of this Agreement The Letter of Credit shall specifically provide for partial draws and shall by its terms be transferable by the beneficiary thereunder If' Live Nation fails to make any payment or other charges due to City under the terms of this Agreement or otherwise defaults hereunder beyond any applicable notice and cure period, City Manager, at his 01 her option, may make a demand for payment under the Letter of Credit in an amount equal to the amounts then due and owing to City under this Agreement In the event that City draws upon the Letter of Credit, Live Nation shall present to City a replacement Letter of Credit in the full Lettei of Credit Amount satisfying all of the terms and conditions of this paragraph within twenty (20) days after receipt of notice from City of such draw. Live Nation's failure to do so within such twenty (20) day period will constitute a default hereunder (Live Nation hereby waiving any additional notice and grace or care period), and upon such default City shall be entitled to immediately exercise all rights and remedies available to it under Section 12..2., In the event that the Letter of Credit has an expiration date earlier than the expiration date of this Agreement and Live Nation has not presented to City a replacement Letter of Credit which complies with the terms and conditions of the Agreement on or before five (5) days prior to the expiration date of any such Letter of Credit then held by City, then City shall have the right (exercisable by City Manager) to draw upon the Letter of Credit then held by City and any such amount paid to City by the issuer of the Letter of Credit shall be held by City as security for the performance of Live Nation's obligations hereunder. Any interest earned on such amounts shall be the property of Live Nation. City's election to draw under the Letter of - 37 - Credit and to hold the proceeds of the drawing under the Letter of Credit shall not be deemed a cure of any default by Live Nation hereunder and shall not relieve Live Nation from its obligation to present to City a replacement Letter of Credit which complies with the terms and conditions of this Agreement. If Live Nation subsequently provides such replacement Letter of Credit to the City, then City shall deliver to Live Nation the proceeds of the City's prior draws (to the extent not previously applied by City pursuant to the terms of this Agreement) within five (5) days after receipt of the replacement Letter of Credit. Live Nation acknowledges that any proceeds of a draw made undet the Letter of Credit and thereafter held by City may be used by City to euro or satisfy any obligation of Live Nation under this Agreement as if such proceeds were instead. proceeds of a draw made under a Letter of Credit that remained outstanding and in full force and effect at the time such amounts are applied by City to cure or satisfy any such obligation of Live Nation. Without limiting the generality of the foregoing, Live Nation expressly acknowledges and agrees that at the end of the Term (whether by expiration or earlier termination hereof), and if Live Nation is not then in default under this Agreement beyond any applicable notice and cure periods and has paid all amounts required hereby, City shall return to Live Nation any remaining and unapplied proceeds of any prior draws made under the Letter of Credit 15. Miscellaneous 15.1, Veriue/Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principals of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami -Dade County, Florida, if' in state court, and the U S District Court, Southern District of' Florida, if in federal court BY ENTERING INTO THIS AGREEMENT, CITY AND LIVE NATION EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, TT -TTS AGREEMENT 15.2.. No Partnership or Joint Venture Nothing herein contained is intended or shall be construed in any way to create or establish the relationship of' partners or a joint venture between the City and Live Nation None of the officers, agents or employees of Live Nation shall be or be deemed to be employees of the City for any purpose whatsoever 15.3. Entire Agreement This Agreement and all Exhibits attached hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, proposals or other expressions of intent with respect thereto including, without limitation, that certain "best and final" offer/proposal submitted by Live Nation pursuant to the process and guidelines established by the City Commission pursuant to Resolution No. 2006-26320 The Exhibits attached hereto are incorporated in to and made a part of this Agreement No other agreements, representations, warranties or other matters, whether oral or written, will be deemed to bind the parties hereto with respect to the subject matter hereof;. 15.4. Written Amendments This Agreement shall not be altered, modified or amended in whole or in part, except in a writing executed by each of' the parties hereto.. -.38- 15.5 Force Mai cure (a) No party will be liable or responsible to the other party for any delay, damage, loss, failure, or inability to perform caused by "Force Majeure" if notice is provided to the other party within ten (10) days of date on which such party gains actual knowledge of the event of "Force Majeure" that such party is unable to perform. The term "Force Majeure" as used in this Agreement means the following: an act of God, strike, war, public rioting, lightning, fire, storm, flood, explosions, epidemics, landslides, lightening storms, earthquakes, floods, storms, washouts, civil disturbances, explosions, and any other cause whether of the kinds specifically enumerated above or otherwise which is not reasonably within the control of the party whose performance is to be excused and which by the exercise of due diligence could not be reasonably prevented or overcome (it being acknowledged that under no circumstances shall a faihue to pay amounts due and payable hereunder be excusable due to a Force Majeure) (b) Neither party hereto shall be under any obligation to supply any service or services if and to the extent and during any period that the supplying of any such service or services or the provision of any component necessary therefore shall be prohibited or rationed by any Law. (c) In the event of substantial damage to or destruction of the Facility by reason of fire, storm or other casualty or any eminent domain action or other regulatory action that, in either case, shall render a substantial part of the Facility inoperable for a period of at least one year or in Live Nation's reasonable opinion the Facility can no longer be operated in a reasonably profitable manner as a result of' the damages or action for a period of at least one year from the happening of the fire, other casualty or regulatory action, either party may terminate this Agreement upon written notice to the other., Upon any such termination, the provisions of Section 13,1 shall apply, City shall receive the entire amormt of all insurance proceeds or eminent domain award as applicable, and Live Nation shall be entitled to a Termination Payment determined as of' the date of termination, (d) Live Nation may suspend performance required under this Agreement, without any further liability, in the event of any act of God or other occurrence, which act or occurrence is of' such effect and duration as to effectively curtail the use of' the Facility so as to effect a substantial reduction in the need for the services provided by Live Nation for a period in excess of 180 days; provided, however, that for the purposes of' this subsection, Live Nation shall have the right to suspend performance retroactively effective as of the date of the use of the Facility was effectively curtailed. "Substantial reduction in the need for these services provided by Live Nation" shall mean such a reduction as shall make the provision of any services by Live Nation economically impractical (but under no circumstance shall failure to pay amounts due hereunder be excusable as Force Majeure) 15 6. Binding Upon Successors and Assigns; No Ihird-Party Beneficiaries. (a) This Agreement and the rights and obligations set forth herein shall inure to the benefit of', and be binding upon, the parties hereto and each of their respective permitted successors and permitted assigns. _39_ (b) This Agreement shall not be construed as giving any person, other than the parties hereto and their successors and permitted assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any of the provisions herein contained, this Agreement and all provisions and conditions hereof being intended to be, and being, for the sole and exclusive benefit of such parties and their successors and permitted assigns and for the benefit of no other person or entity. 15 7, Notices Any notice, consent or other communication given pursuant to this Agreement will be in writing and will be effective either (a) when delivered personally to the party for whom intended, (b) on the second business day following mailing by an overnight courier service that is generally recognized as reliable, or (c) on the fifth day following mailing by certified or registered mail, return receipt requested, postage prepaid, in any case addressed to such party as set forth below or as a party may designate by written notice given to the other party in accordance herewith To the City: and to City of Miami Beach City Manager 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: Jorge Gonzalez, City Manager. City of Miami Beach City Attorney 1700 Convention Center Drive Miami Beach, Florida 33139 To Live Nation: Live Nation Worldwide, Inc. 9348 Civic Centex Drive Beverly Hills, California 90210 Attn: Bruce Eskowitz With copy to: Live Nation Worldwide, Inc, 2000 West Loop South, 13th Floor Houston, Texas 77027 Attn: James Tucker 15.8. Section Headines and Defined Terms. The headings contained herein are for reference purposes only and shall not in any way affect the meaning and interpretation of this Agreement. The terms defined herein and in any agreement executed in connection herewith - 40 - include the plural as well as the singular and the singular as well as the plural, and the use of masculine pronouns shall include the feminine and neuter, Except as otherwise indicated, all agreements defined herein refer to the same as from time to time amended or supplemented or the terms thereof waived or modified in accordance herewith and therewith.. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original copy of' this Agreement, and all of which, when taken together, shall be deemed to constitute but one and the same agreement.. 15,9. Severability The invalidity or unenforceability of any particular provision, or part of any provision, of this Agreement shall not affect the other provisions or parts hereof; and this Agreement shall be consti ued in all respects as if such invalid or unenforceable provisions or parts were omitted 15.10 Non -Waiver A failure by either party to take any action with respect to any default or violation by the other of any of the terms, covenants, or conditions of' this Agreement shall not in any respect limit, prejudice, diminish, or constitute a waiver of any rights of such party to act with respect to any prior, contemporaneous, or subsequent violation or default or with respect to any continuation or repetition of the original violation or default. 15 11 Certain Representations and Warranties.. (a) The City represents, warrants, and covenants to Live Nation the following: (i) City has full legal right, power and authority to enter into and perform its obligations hereunder; and (ii) this Agreement has been duly executed and delivered by the City and constitutes a valid and binding obligation of the City, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' Tights generally or by general equitable principles. City further represents and warrants to Live Nation that for so long as Live Nation is not in default under this Agreement beyond any applicable notice and cure period, Live Nation's operation and management of the Facility shall not be disturbed or hindered by City in its proprietary capacity or anyone claiming by, through or under City in its proprietary capacity, subject, however, to the terms, provisions and obligations of this Agreement. The foregoing shall not apply, however', with respect to the City acting in its governmental capacity or exercising its police powers, (b) Live Nation represents and warrants to the City the following; (i) Live Nation has full legal right, power and authority to enter into and perform its obligations hereunder, and (ii) this Agreement has been duly executed and delivered by Live Nation and constitutes a valid and binding obligation of Live Nation, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally or by general equitable principles.. 1512 Governing Law.. This Agreement will be governed by and construed in accordance with the internal laws of the State of Florida, without giving effect to otherwise applicable principles of conflicts of law, -41 - IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of'the day and year first above written ATTEST: CITY I F MI • t I B ACH, FLORIDA, a muni of the State of'Florida By: nt Name City Clerk Print Name 144 P b4hT PA-e''C' — [Signatures continue on next page] APPROVED AS TO FORM & LANGUAGE FOR EX CUTION rney LIVE NATION WORLDWIDE, INC., By:_._ Name: 1446e Title: C 6 N oV 'i V ‘),S 4� L - 43 - ATMS'S: By: Name: Michael G. Rowl Title: Secretaiy LIVE NATION WORLDWIDE, INC. By: Title: &)- -43 - EXHIBIT "A" LEGAL DESCRIPTION Commence at the point of intersection of the center lines of 17th Street and Meridian Avenue, as shown in AMENDED PLAT OF GOLF COURSE SUBDIVISION OF THE ALTON BEACH REALTY COMPANY, recorded in Plat Book 6, at Page 26, Public Records of Miami -Dade County, Florida; thence easterly, along the easterly extension of the center line of said 17th Street for a distance 868..00 feet; thence deflecting 90°00' 00" to the left for a distance of 232.30 feet to the POINT OF BEGINNING of the tract of land herein described; thence continue northerly, along the northerly extension of the last described course for a distance of 131„70 feet; thence deflecting 90°00' 00" to the right for a distance of 187.80 feet; thence deflecting 90°00' 00" to the right for a distance of 300 feet; thence deflecting 90°00' 00" to the left for a distance of 268..15 feet; thence deflecting 90°00' 00" to the right for a distance of 955 feet to a point in a curve; thence deflecting 19°15' 47" to the right to the chord of a curve concave to the southeast„ Said curve having a central angle of 40°31' 55" and a radius of 92..63 feet running along the arc of said curve for a distance of 65.53 feet to a point of tangency; thence southerly, along the southerly extension of the tangent of the last described curve for a distance of 18..75 feet; thence deflecting 90°00' 00" to the left for a distance of 29..60 feet; thence deflecting 90° 00' 00" to the right for a distance of 59.65 feet; thence deflecting 90°00' 00" to the right for a distance of 29.60 feet; thence deflecting 90°00' 00" to the left for a distance of 12.45 feet to a point of tangency; thence along the arc of a curve concave to the northeast, having a central angle of 34°11' 17" and a radius of 73.45 feet for a distance of 43.83 feet; thence deflecting 105°28' 42" to the right from the chord of the last described curve for a distance of 61.55 feet; thence deflecting 90°0O' 00' to the left for a distance of 4.70 feet; thence deflecting 90°00' 00" to the right for a distance of 44.85 feet; thence deflecting 90°00' 00" to the left for a distance of 20.00 feet; thence deflecting 90° 00'00" to the right for a distance of 18.00 feet; thence deflecting 90°00' 00" to the right for distance of 20.00 feet; thence deflecting 90°00' 00" to the left for a distance of 75.00 feet; thence deflecting 90°00' 00" to the left for a distance of 17.30 feet; thence deflecting 90°00' 00" to the right for a distance of 27,45 feet; thence deflecting 90°00' 00" to the left for a distance of 2.00 feet; thence deflecting 90°00' 00" to the right for a distance of 21.46 feet; thence deflecting 90°00' 00" to the right for a distance of 12.30 feet; thence deflecting 90°00' 00" to the left for a distance of 16..80 feet; thence deflecting 90°00' 00" to the right for a distance of 21.30 feet; thence deflecting 90°00' 00" to the left for a distance of 64.50 feet; thence deflecting 90°00' 00" to the left for a distance of 2.60 feet; thence deflecting 90°00' 00" to the right for a distance of 80.52 feet; thence deflecting 90°00' 00" to the right for a distance of 12,10 feet; thence deflecting 90°00' 00" to the left for a distance of 14.50 feet; thence deflecting 90°00' 00" to the right for a distance of 54.80 feet; thence deflecting 90°00' 00" to the left for a distance of 21.65 feet to the POINT OF BEGINNING. Said lands located in Section 34, Township 53 South, Range 42 East, City of Miami Beach, County of Miami Dade, Florida and containing 90,421 square feet more or less or 2.,076 acres more or less, :'////',7) TI-,•=77.--L'....../.7.7.72;z-- --- . 1-4- --1 — --",--___,,,_..4-011!), AA•,,,, ' Ai hp, 1- '.A1 li 4 ? ,14 144 ;I7. ("- - i j ' 1 1 411 ! , 0„, il fll' 4, 1 ! o ;1)11 i 1 A 4 A I 4 lokj 1 1 41 i k 4 ,. ? 1 1 b i i 4.2' : 11-. 1'; i' 71j1 1 -` 4 lli , -yli63.1f -....=.il ,.1 1 1 VI, '..„ „,,,,,..,,,:,,, ‘,. 0. - 1, 1 . , . X f ,1 , i I „ „,1 1 , kk., ' 7•7,-.7'i I h144/ -. ••,!,..,3 • i I, ,,k,„ ,..1 L 1 p \ l ' I „, ..'t111 31:1 d •-,h !^4Ri ''',I'' i. • 1 ^ i ,. 41 .1 'P ? v ; 1 i '4 1 4 ! I I I Et v 1-;''J'I ;L.:: ::•:,,,i ',..L:\".:\:::514. 1 ' 2.'4 ,t, - , , -,• '''• I, anwwiaxwu , aCja. hiN1 1 111 1'', 1€1, i ( t ts.,...„-'7A------ '11 •1 :9;•”? ", ! „.• I I, _ k•triti 1 . > 'llui 1 vl '' l i 4 -, A , 1& i 5 ' 0 1 1 .''fACP a' ' L11 :''il—H-11:1' willIN 11416 .11 4 •—• fi 1, 0142! it Li 111;4,,.----1,-,------ iil , • -__..t. A . i '..1-.q . I A 9 - '''' 1 • 7' ,j o f . 1- - l•-•'- APH \-..f/.._:::::: I ,,,i; I.....,........ „..... !Ni . , ;%14;„, .") • 1 a.," ' /e" . . 1 •'• . /I 1 - --. 1 i• 01 /1- "A % -, .., 1 iii I : ----; ••••m -'''',, ./1, , f .-1 ' 1 .• . VA 6?•YI•1 il ii I ' ,,,, JI i e 1 i ; V lii] 101" ia v.ppvppi1 , .,p....(,,9 -"P.---q--i-V-A, 47 •:7-',1--- • -''- - ..... _ J._ 4 4' t LL LlJ w EXHIBIT "B" CITY WORK I. ADA RENOVATION SCOPE OF WORK All necessary work, labor, equipment and materials to complete the ADA modifications to the Tackle Gleason Theater, including, without limitation, all matters reflected and indicated in the following plans and specifications: A4.0 Mezz. Lobby NE & SE Toilet Plan A4.1 Mezz. Lobby NE & SE Finish Plan A4.2 Mezz. Lobby NE & SE RCP A4.3 Mezz. Lobby NE & SE Elevations A5.0 Mezz. Level NW & SW Toilet Plan A5.1 Mezz. Level NW & SW Finish Plan A5.2 Mezz. Level NW & SW RCP A5.3 Mezz. Level NW & SW Elevations 12/15/03 12/15/03 12/15/03 12/15/03 12/15/03 12/15/03 12/15/03 12/15/03 NE Toilet Area #7 Only NE Toilet Area #7 Only NE Toilet Area #7 Only NE Toilet Area #7 Only NW Toilet Area #9 Only NW Toilet Area #9 Only NW Toilet Area #9 Only NW Toilet Area #9 Only All work indicated above shall be substantially complete and able to be used by Live Nation no later than 12/15/2007. The City will provide a CPM schedule for this project and allow a Live Nation representative to attend construction progress meetings to verify schedule and coordinate construction activities, II. FOUNDER'S ROOM ANT) ADA RENOVATION SCOPE OF WORK All necessary work, labor, equipment and materials to complete the Foundet's Room and ADA toilet room modifications to the ,Jackie Gleason Theater, including, without limitation, all matters reflected and indicated in the following plans and specifications: A1.0 Founder's Room Toilet Plan A1.1 Founder's Room Finish Plan AL2 Founder's Room RCP A1.3 Founder's Room Elevations A1.2.0 Founder's Room Demo Plan A1.2.1 Founder's Room Floor Plan A1.2,2 Founder's Room Demo RCP A1.2.3A Foundet's Room RCP and Roof Plan A1.2.3B Founder's Room RCP and Linhtina A1.2.4 Founder's Room Elevations A1.2.5A Founder's Room Bar "F" A1.2,5B Founder's Room Bar "F" A3.0 Entry Level NW & SW Toilet Plan A3.1 Entry Level NW & SW Finish Plan A3.2 Entry Level NW & SW RCP A3,3 Entry Level NW & SW Elevations 12/15/03 12/15/03 12/15/03 12/15/03 2/03/03 2/03/03 2/03/03 2/03/03 2/03/03 2/03/03 2/03/03 2/03/03 12/15/03 12/15/03 12/15/03 12/15/03 Exhibit B Page 1 NW Toilet Area #5 Only NW Toilet Area #5 Only NW Toilet Area #5 Only NW Toilet Area #5 Only A13.0 Exterior Ramp and Platform Lift Plan 12/15/03 ADA Lift Only, Ramn is complete. City shall cause all work indicated above to be substantially complete and able to be used no later than 11/1/2008. City shall cause all construction trailers, equipment and debris to be removed from the Facility prior to 11/1/2008. Live Nation shall meet with the Architect of Record to review the proposed finishes for this project prior to the start of construction Live Nation may request minor changes to the color palette to better coordinate with Live Nation proposed changes and City shall accommodate such requested changes so long as no additional costs are incurred. Live Nation shall meet with the Architect of Record to review the proposed bar area for this project prior to the start of construction Live Nation may request changes to the bar to better coordinate with Live Nation's proposed use and City shall accommodate such requested changes (but Live Nation shall bear any additional costs). The changes will include: redesign Founder's Room bar to simplify design, revise equipment and create a uniform counter depth. City shall provide a CPM schedule for this project and allow a Live Nation representative to attend construction progress meetings to verify schedule and coordinate construction activities III CITY RENOVATION SCOPE OF WORK PRASE THREE All necessary work, labor, equipment and materials to complete the south mezzanine level bar at the Jackie Gleason Theater, including, without limitation, all matters reflected and indicated in the following plans and specifications: A2.1.6A Second Floor Lobbv Bar A2.1.6B Second Floor Lobbv Bar Details A2.1.1B Second Floor Lobby Bar Location Plan 2/3/03 South Bar Only 2/3/03 South Bar Only 2/3/03 South Bar Only All work indicated above shall be completed by Live Nation on behalf of the City of Miami Beach to facilitate the timing of the project completion The City will reimburse Live Nation for all direct construction expenses and any indirect expenses that fall outside of Live Nation's other project (these expenses may include, but are not limited to permit expediting and health department coordination)„ Live Nation reserves the right to modify the bar plan to adjust for different equipment and alternative finishes. Exhibit B Page 2 EXHIBIT "C" UPGRADES All necessary work, labor, equipment and materials to complete a $3,500,000 renovation to the Jackie Gleason Theater., Projects will be completed in the order of priority shown below until achieving the $3,500,000 spending cap ("Cap"), after achieving the Cap there shall be no obligation to perform any remaining work or items. All costs shown include hard construction costs, soft costs, and furniture, fixtures and equipment. Priority 1 -- Modifications to the auditorium to convert to a live music use. $1,400,000 ▪ Remove all fixed seating between the cross aisle and the stage. • Install three level platforms between the stage and center cross aisle Include steps, ramps, and a low wall drink rail at each level change. Floor surface to be oak hardwood flooring Floor structure to be metal studs and metal deck with a concrete topping with a portable pit filler platform over the existing orchestra pit • Existing interior green drapery will be dyed red, including main traveler and auditorium side wall curtains.. ▪ Green balcony seat fabric will be replaced with red, • Install (4) new glass and crystal chandeliers with blue pin spots. Priority 2 -- Modifications to existing production audio and lighting systems, $400,000 • Replace existing speakers with a line array system • Augment the existing dimmer system with a new 24 channel board. Priority 3 -- Modifications to maiu lobby and concessions $500,000 ▪ New main lobby flooring.. • Paint main lobby walls.. • Relocate Gleason artwork and add new live music posters and photos. • Install new red drapery in main lobby • Install new glass and crystal chandelier with blue pin spots in main lobby. • Add new walk-in cooler adjacent to the main lobby for beer storage.. • Add new beer system with three flavors of beer at each point of' sale • Remove existing back bars and install new display coolers and beer taps. • Update bar areas to accept new equipment as required (ice bins/ speed rails, reach -in coolers, soda guns) • New POS system as required Priority 4 -- New exterior signage $200,000 • Modify front marquee signage to have "IHE FILLMORE" standup letters above the existing marquee. • Replace the existing rear building sign with "The Fillmore at the Jackie Gleason Theater,." Priority 5 -- Balcony VIP box seating and VIP lounge $400,000 ▪ Replace existing seats in front of the balcony cross aisle with new larger high back seats with cup holders.. • Create VIP lounge in balcony level lobby with new fixed bars and lounge seating and tables.. Exhibit C Page 1 Priority 6 -- Modify backstage dressing rooms, green room and catering kitchen. 250,000 Create new catering kitchen adjacent to the existing loading dock behind the practice room Modify existing practice room decor to create a green room. Upgrade and combine 4 dressing rooms to create two larger dressing rooms for touring acts , Contingency $350,000 Exhibit C Page 2 EXHIBIT "D" MINIMUM OPERATING AND MAINTENANCE STANDARDS, These minimum operating and maintenance standards are intended to be considered as a whole and intended to provide an overall standard for the Facility. Individual discrepancies, as well as deviations, from any individual standard shall not be considered a default of the Agreement; it is the intention of the parties that this Exhibit is merely a guide and that Live Nation is only expected to use good faith efforts to endeavor to meet the standards set forth herein. In the event of a conflict between the terms or conditions of the Agreement and the terms or conditions of this Exhibit, the terms and conditions of the Agreement shall control. PERSONNEL 1 Live Nation shall have the sole responsibility to recruit and employ a full-time general manager and any necessary administrative and accounting personnel that are responsible for the overall management and operation of the Facility 2. Live Nation shall have the sole responsibility to recruit and employ sufficient personnel to maintain the following functions: general security; janitorial, housekeeping and cleaning for both event and non-event cleanup; maintenance for electrical systems, plumbing; and air conditioner operation; painting and general overall maintenance of the Facility to ensure that the Facility is being maintained consistent with othersimilar first class facilities operated by Live Nation 3 . Live Nation shall have the sole responsibility to recruit and employ personnel as it deems necessary for the staging and coordinating of Events., 4 Live Nation shall maintain personnel policies that assure employment practices do not discriminate on the basis of race, color, religion, military status, marital status, physical or mental disability, national origin, age, gender, or sexual preference., GENERAL SECURITY 1. Live Nation shall provide for the overall security of the Facility, including during non- event hours. EMERGENCY PROCEDURES 1 Live Nation shall assign an employee and a backup employee to act as an Emergency Liaison to the City This individual will be required to use good faith efforts to attend any and all meetings, held by the City, that deal with emergency situations, such as extreme weather events, terrorist acts, etc The Liaison will serve as the point of contact during any emergency crisis 2. Live Nation shall develop and implement a Hurricane Preparedness Procedure, a copy of which shall be provided to the City Exhibit D Page 1 JANITORIAL, CLEANING AND HOUSEKEEPING 1, The Facility shall be reasonably clean at all times. This includes general cleaning during non-event times, as well as during Events 2. Restrooms are to be cleaned during Events and on a periodic basis during non-event times to assure that they are in a functional and reasonably sanitary condition 3 Garbage and trash shall be removed on an as -needed basis.. Trash receptacles shall be stationed throughout the Facility. 4 Live Nation shall maintain compactor, garbage areas, waste areas, recycling areas, and dumpster areas reasonably clean and debris free in order to comply with applicable codes. 5. Carpets shall be vacuumed and cleaned on an as -needed basis 6. Terrazzo flooring shall be cleaned and polished on an as needed basis.. '7 Windows shall be maintained in a reasonably clean condition and cleaned on an as needed basis.. 8 Treatment for pests and rodents (except termites) shall occur on a quarterly basis as needed to prevent infestation or as required by applicable code 9. Entrance doors and mirrors shall be maintained in a reasonably clean condition and cleaned on an as needed basis. LANDSCAPING 1 Indoor landscaping shall be maintained in accordance with specifications of the type of plant and should be watered and fertilized as the type of'plant demands. 2 Indoor landscaping should be reasonably insect -free EQUIPMENT MAINTENANCE AND GENERAL MAINTENANCE 1. Equipment shall be maintained in a good and workmanlike manner in order to maintain in fiull force and effect all dealer's and manufacturer's warranties. Live Nation shall develop an annual schedule for equipment inspection and preventative maintenance 2 Upon termination, cancellation, and/or expiration of the Agreement, Live Nation shall provide all records maintained in accordance with Section 2.3 (e), All existing warranties that are transferable will be transferred to the City Exhibit D Page 2 3, Live Nation shall develop a preventive maintenance plan for the building and its major building systems and major equipment. This plan shall be provided to the City Manager annually or when updated. 4. Live Nation shall post and maintain, as required by any applicable governmental code and/or regulation, any and all required professional licenses, certifications, and/or permits. 5 Live Nation shall maintain and inspect all building safety systems including but not limited to: smoke, fire, and CO detector systems, backup generator operation, emergency battery backup functions, emergency lighting, emergency egress, special needs and blackout preparedness equipment. All building safety systems shall be tested on at least an annual basis or as required by federal, state or local codes and regulations, and maintained in operating condition at all times. 6. Live Nation shall develop and implement a system for regular inspections of elevator and escalator controls, motors, suspension systems, and related equipment, and shall maintain such systems substantially in accordance with manufacturer required standards 7 Live Nation shall develop and implement a plan for inspection and maintenance, including replacement if needed, for the Facility's HVAC systems. This shall include inspection of all HVAC controls on a quarterly basis to verify proper setting and operation as well as any adjustments and/or maintenance that may be appropriate, including, but not limited to filter replacement, blower and/or heat exchanger, proper operation of air intakes/vents, fan units, ducts, etc. 8 Live Nation shall develop and implement a plan for inspection and maintenance of the building envelope and roofing systems. This shall include periodic inspection and maintenance tasks for the roof; roof penetrations, and exterior walls and penetrations. 9 Live Nation has the sole responsibility of maintaining the paint on both, the interior and exterior of the Facility. The City has the sole right to approve (not to be umeasonably withheld, conditioned or delayed) the paint color selections used on the exterior of the Facility. Exhibit D Page 3 EXHIBIT "E" CITY AGREEMENTS Exhibit E Page 1 F =? cn EXHIBIT "F" PENDING BOOKINGS. k.Q ti ;Vei2:iri Fiji o 04/03/08 04/04/08 04/08/08 04/09/08 Inter -American Development Bank 07/14/08 07/19/08 07/23/08 07/25/08 Swimwear Show 12/05/08 12/08/08 12/10/08 12/10/08 IAEM Expo! Expo! 03/31/09 03/31/09 04/04/09 04/04/09 International Association for Dental Research 2009 International Meeting 05/13/09 05/16/09 05/20/09 05/22/09 International Pow Wow 07/13/09 07/18/09 07/22/09 0'7/24/09 Swimwear Show 11/02/09 11/07/09 11/09/09 11/11/09 American College of Allergy Asthma & Immunology 2009 03/01/10 03/06/I0 03/09/10 0.3/11/10 American Academy ofDermatology Annual Meeting 06/05/10 06/05/10 06/14/10 06/14/10 American Institute of Architects 07/12/10 07/17/10 07/21/10 07/2.3/10 Swimwear Show 09/27/1I 10/02/11 10/05/11 10/07/11 American Society for Therapeutic Radiology & Oncology (ASTRO) 04/11/12 04/16/12 04/18/12 04/19/12 American Academy of Neurological Surgeons Annual Meeting 04/22/12 04/25/12 04/28/12 04/29/12 National Council of Teachers Mathematics 06/04112 06/09/12 06/13/12 06/14/12 Society of Nuclear Medicine Annual Meeting 02/25/13 03/02/13 03/05/13 03/07/13 American Academy of Dermatology Annual Meeting Exhibit F Page 1 EXHIBIT "G" This approved list of sponsors is intended to be considered as a whole and intended to provide and overall standard for the Facility. It is the intention of the parties that this approved list of sponsors is merely a guide and that Live Nation is only expected to use good faith efforts to endeavor to meet the standards set forth herein„ In the event of a conflict between the terms or conditions of the Agreement and the terms or conditions of this approved list of sponsors, the terms and conditions of the Agreement shall control. Account Name "NYS Public Service Commission 10,000 RV 21st Amendment Liquors 24 Hour Fitness 4 wheel parts 4 You 5/3 Bank 7 -Eleven 7 -up Bottling Company 92 ..9 Dave FM 96 5 WT'IC-FM 99X A & P / Superfresh A&A Cycle Sports A&B Suzuki Wheeling A&E Television Networks A. D, Farrow Harley Davidson Al Alliance Limousine MA Aamco Transmission AAPECS Eye Care AARON RENTS Absolute Vodka AC Delco Academic Financial Services Ackerman McQueen - Taco Mayo ACMS-ATM Acosta Sales & Marketing Company Action Integrated Marketing Action Motorsports Acuvue Adidas 1 Adir Restaurant Corp. DBA Polio Campero Adirondack Tire Center ADT Advance Auto Parts Advanced Laser Technology Advanced Motorsports Adventure Aquarium Adville USA - Wienerschnitzel - Tucson Aero Electronics Aeromexico Aeromexico Airlines Aeropostale Aetna, Inc AFLAC AIG Air Force Air Force - Memphis Air Force Hidalgo Air Force Pittsburgh Air Force Reserve - Baline Warren Air force Richmond Air Force Roanoke Air Force Saginaw Air Tran AirTran Airways Al Packer's White Marsh Ford ALABAMA POWER-sponsor Alamo City Harley Davidson Alan Frank & Assoc-KFC Alaska Airlines Alaska Distributors Co. Alberta Pork Albertsons Albright Ideas ALBUQUERQUE JOURNAL Alcoa Gcodtimes Yamaha Alefs Harley-Davidson Wichita Alfred State (Tre Media)' All Points Connect All The Rage Allegheny County Court Services (ACCS) Allegheny County Court Systems Alliance Alliance Data Alliance Hospitality Management Allied Advertising Allied Lube - Texas, California Allied Services Allied Wireless/Telus Allstate Allstate Insurance Company ALLTEL Almaden Press Alpinestars Alternative Apparel Altmans Winnebago Alton's Tire Alvarez Tire Am Ex Amalie Oil AMC( AMD Amegy Bank of Texas Amerada Hess America Service American Airlines American Bottling American Dairy Brands American Eagle Credit Union American Eagle Outfitters American Electric Power (AEP) American Express American Family Insurance American Honda American Honda Motor Co.., Inc. American Kawasaki of Garland American National Bank of Omaha American Red Cross American Suzuki Motor Corp. -Motorcycle / ATV Division American Suzuki Motor Corporation American Tap Room America's Tire Ameriprise Financial Ameristar auto outfitters Ameristar Casino AMP'D Mobile Amscot Anderson Sales & Service Andrews Suzuki Andy's Honda of Hazard Anheuser Busch Anheuser Busch Inc Anheuser Busch, Inc. Anheuser-Busch Anheuser-Busch Inc. Anheuser-Busch, Inc. Anheuser -Busch -Sponsor Anita Santiago Annie's Homegrown ANR Motorsports San Antonio ANTHEM Anthem Blue Cross Blue Shield Anthony & Sylvan Pools AQL AOL/Time Warner Apache Motorsports Apple Applebee's Aqua (Blue Cross) Aqua Fina Water Arby's Arbys Morocco Arby's Oklahoma City Arcade Rockstar Arena Concessions Argyll Motorsports Arizona Lottery Arizona Public Service Co Arizona Public Service Company Arlington Heights Ford Armani AIX Army Army Charleston Army - Milwaukee Army Evansville Army National Guard Army National Guard Nampa Army Prescott Valley Army Recruiting - Greenville Army Richmond Army Roanoke Army Rockford Arnl's Restaurant Arnold Agency - SUBWAY Arnold MPG Arrow Limo Arrowhead Motorsports Arrowhead Pond Art.com Asher Agency (SUBWAY) Ashley Furniture ASK Powersports Aspen Marketing Aspen Pure Astound Cable AT&T Athena Spa Atlanta Beverage Company Atlantic Bartender School Atlantic City Airport Atlantic Power Cleaning Atlantic Superstore Atlantis - Reno Auburn VaI-U Inn Audi audio express Audio Workx audiotronics Austrends AutoNow/LiftedTrucks .com Autotrader.com AVEDA Institute Avocet Communications AXE Axis Eye Center Azteca Mexican Restaurants B&G Foods Babson College Bacardi Bacardi U.S.A., Inc, Bacardi USA, Inc.. Bachman Company Bad Boy Energy Drink Bad Rat Motorsports Badcock Badger Liquor Bahama Mama Ball State University Ballard Spahr Baily Total Fitness Banana Boat BANK OF ALBUQUERQUE Bank of America Bank of Sacramento Bank of St, Petersburg Bank of the West Banner Health Arizona Bar Louie Barbizon Modeling Barb's Harley Davidson Barefoot Wines/ E&J Gallo Barking Crab Bar's Products Barton Beers Inc Barton Brands Bass Pale Ale Bass Pro Shops Bath Fitter bauer Built Tire Bavarian Inn Bay State College Baymark Inc. BB&T BBDO / Dodge BBDO California BBDO Detroit (Dodge Jeep) BBDO Dodge Upstate NY BBDO Syracuse - Jeep Beazer Homes Beck's Beef 0 Brady's Beer and Wine Specialists BEFORE & AFTER BODY CARE Behan Communications - GE Bell Ford Bell Powersports Bella Vita Restaurant Belmont Hotel Ben & Jerry's Ben and Jerry's Ben and Jerry's/Scoop Shops Benedict Advertising (Subway Atlanta) Bentley College Beringer Bernie Robbins Jewelers Corporation Bernstein-Rein Advertising, Inc. Bert Ogden Motors Berts Mega Mall Best Buy Best Buy Mobile Best Western - Heritage Inn Best Western Harbor Shores Best Western Hazlet Inn Best Western International Best Western Peppertree Auburn Inn Best Western Raleigh Inn & Suites Bestwestern Battlefield Inn Better Bedding BFG Communications BFGoodrich Tires Bi Mart Big Fish Promotions Big Lots Big 0 Tires (Sharp Advertising) Big Sky Distributors Big Sluff (detroit) Big Top Entertainment Big Top Rentals Big Z Tire and Auto Center Big-0 Tires Bill Graham Presents (Live Nation Amphitheatre) Bill Hudson Agency (McDonald's) Bill Smith Ford Birmingham Coca Cola BIRMINGHAM NEWS Birmingham Suzuki Blender Magazine Blockbuster, Inc. Bloomsburg University Blossom Chevrolet Blossom Shop BLR Agency(Subway) Blue Back Square Blue Dot Marketing Blue Martini Blue Moon Blue Shield of California Blue Whale Holdings, LLC Bluegreen Corp.. Bluegreen Corporation Bluegreen Vacation Club BMA Productions, Inc. - Rinco of Texas, Inc. 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Red White & Boom Redken 5th Avenue NYC Rednecks Bar Redoctane Inc (Guitar Hero) RedPeg Marketing, Inc. Reedman Toll Regal Entertainment Reggio's Pizza Regions Bank Regis Corporation / Suporcuts Reis Nichols Relay Relay Worldwide Relay Worldwide (McDonald's) Relay Worldwide, Inc.. Reliable Churchill Reno Cycles and Gear Rent -A -Center (Launch Agency) Renton Motorcycles Republic Services RER Motor City Residence Inn Pittsburgh Airport Residence inn Rocky Hill Revival Christian Fellowship Revol Revol Wireless Revolver Mexican Cafe & Rock Bar Rezniok Group Rhino Linings Rhytec, Inc.. Richard's Honda Yamaha Richardson's RV Centers, Inc. Rick's Ranchwear Ricoh Ridenow PowerSports Management Group Riders Powersports Riders World RiverLink Ferry Rives Oariberg Robbins Bros„ Robbins Brothers Robbins Diamonds Rock Bottom Rock Lobster Rock U Rockaway Bedding Rockhouse Grill Rockstar Energy Drink Rockstar Games Rockstar Inc.. 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Camden Ryder Trucking S & T Bank Saab Saatchi & Saatchi Saatchi & Saatchi ( Toyota - KC Region) Sabrett Safe Auto Safe Auto Insurance Company Safeway - Salinas, CA Sagamore Insurance Saginaw Valley Ford Salinas Valley Ford Sam Adams Sam Ash Music Samsung Telecommunications America San Antonio Current San Antonio MMA San Manuel Band of Mission Indians San Manuel Indian Casino Sanders Clinic Sanders Cycles Sandia Casino SanDisk Corporation SANTA ANA STAR CASINO Santa Rosa Vee Twin Saratoga Polo Saturn Saturn of Capitol Expressway Saturn of Memphis Savane Savings Event Scarff Ford Scene Magazine Schick Schick Amplitude Marketing Group Schuylkill Valley Sports Inc Schwartz Laser Eye Center Scion Scion Northeast Sciortino Tailors Scotty's Audio and TV Sea Star Entertainment Seagate Technologies Seastreak Sebring Raceway Seminole Hard Rock Hotel & Casino Seneca Niagara Casino Sentara Sentara Healthcare ServiceMaster SF Weekly Shaker Advertising Sharks Cycle Shawmut Hills Shaw's Supermarket Shell Vacations SHELTON JEWELERS Shenandoah Crossings Sheraton Hotels Sheraton- Universal City ShopRite - Wakefern Foods Shore Cycle Sidney Frank Importing Co.. Sidney Frank -VIP NY Siemens Building Technologies Siena Hotel Spa & Casino Siepser Lazer Eye Sierra Construction Sierra Mist Sierra Nevada Signature Properties Simple Twist of Fate Single Digest Racing Sinn Riding Company Sir Pizza Sirius Satellite Radio Sit'nSieep Sittercity .com Six Flags Great Adventure Skechers Skier's Choice, Inc Sky Bank Skyline Chili SkyVenture Skyview Center Skyy Vodka Sleep Inn Sleep Inn by Choice Hotels Sleep Train Sleep Train Mattress Centers Sleepy's Sling Shot Sloan's Motorcycle (MidTown Media Group) Slomin's Slush Puppie Tri-State, Inc. Smart Sign Media Smart Travel - Cincy Smirnoff / Diageo Smith & Hawken Smith Hot Dogs Smithfield Foods Smuckers Beverages Snake River Yamaha Snap On - Salinas Snap on tools Richmond Snapfish Snap-On Tools Snapple Snug Harbor Inn Snyder of Berlin SoBe Sobey's Inc.. Softlips Soho Experiential Sonic Sony Card SONY Corporation of America Sony Electronics Sony Ericsson Sony Online Entertainment Sony Pictures Sorrento Cheese South Haven Kawasaki South Jersey Auto Parts Southern Cal Auto Club Southern Family Market Southern Indiana Honda Southern Journey's Southern Perrier Jouet Southern Wine & Spirits Southern Wine and Spirits Southern Wine and Spirits MA Southern Wine/Moet Chandon Southern Wines & Spirits Southtown Southwest Airlines Southwest Ford Dealers Southwest Media Group Southwest RV Centers Sovereign Bank Spa Sydell sparkle Car wash Speed & Truck World Sperry Top Siders SPIN Splash Carwash Splash Event & Promotional Marketing Splashdown Mountain sponsor philly events SponsorSource, Inc, - Toyota Sport City of Jacksonville Inc Sportland Sportline Power Products Sports Media sportsvacations,com Sprint Sprint - Nextel Sprint / Nextel Sprint Nextel Sprint Wireless SPY Optics SRP St John & Partners (Southern Ford Dealers) St, John & Partners (Southern Quality Ford Dealers) St.. Pete Grand Prix St. Petersburg Times St. Vincent Hospital St,Vincent Heart Center of Indiana Stanford Financial Stanford -Hilton VIP Room Staples Star 94 Star Island Motorsports Starbucks STARBUCKS COFFEE Starbucks Coffee Company Starbucks Ent Starburst State Farm State Farm Insurance Stephen & Yeaton Chevrolet Ltd STEPS to a Healthier Cleveland Stereo West Auto Toys Stereoshop Stern Advertising Stern Advertising (McDonalds) Steve's Frozen Chillers Straders Strategic Alliance Marketing Strawberry Fields Strayer Education Street Glow Stride Mgmt, - Alberta Lottery - Legion Million Dollar Lottery Student Universe Stunt Town U.S.A. Subaru Suburban Driveline Subway Subway - Edmonton Subway - Nampa Subway - Santa Rosa SUBWAY (Asher Agency _ Glen Adv) Subway (niemer Ferner) Subway Franchisee Advertising Fund Trust Summer Bay Resorts Summit Bank Sun Sank Suncoast RV Sundance Vacations Sunoco Sunoco, Inc, Sunrise Cycle and Watercraft Sunshine Vacations Sunshine Western Hats Suntimes SunTrust Suntrust Bank SunTrust Bank, Atlanta Super 8 Motel Racine Supercuts Superior Beverage Supreme Beverage ( Miller) Susquehanna Bank Suzuki North Suzuki/Kawasaki of Laredo SX - Toyota Motor Sales USA Sycuan Band of the Kumyayye Nation Sycuan Resort and Casino Synergy Title and Escrow, LLC SYNLAWN Table Mountain Casino Taco Bell Taco Del Mar TAG Tag Heuer TAG Motorsports, Inc.. Take 2 Talbot Wilson & Associates (Subway) Talbott Marketing, Inc. Tasty Baking Company TBWA\Chiat\Day - Tequila/ TD Banknorth Team Ford Team One Team Toyota Ted Britt Ford (CCR) Temple University Hospital Ten United Teners western wear Tenneco Automotive Tennessee Departmet of Transportation Tennessee Used Oil Terrible Herbst Terry's Hats Texas Lottery Texas Ski Ranch texas tin of Terrell Texas Yamaha TGI Friday's The Avenue District The Barnes Firm The Bauman Group The Coca Cola Company The Dannon Co., Inc. The Eagle The First National Bank The Gambrinus Company The Georgian Terrace The Heart Truth The Hive The Home Depot The Houston Press The Jordan Group (Dairy Queen) The Legends The Marketing Arm The Memorial Flag The Mortgage Store The Off -Road Connection The Onion The Ostler Group The Outdoor Channel The Pepsi Bottling Group The Plain Dealer The Progressive Corporation The Rec Rooni The Rim Golf Club The Sander's Clinic The Tan Company The Vein Treatment Center The Wine Gallery & Market The Wolf J KPLX theconcertgoer, com Thompson Audio Thompson Marketing Tidewater Communications, Inc. Tier One Bank Tiger Schulmann's Karate Tim Hortons - Corporate Tim O'Neill Motorsports Timbergyms Time Warner Cable Time Warner Cable Ohio Times Leader Times Union Tire and Wheel World - Salinas tire Center Inc Tire Centers, LLC Titus -Will Ford Sales Inc„ TIVO TJ Maxx TLC Laser Eye Centers TMB Marketing Group - Global Powersports T -Mobile T -Mobile USA Togos Tom Wood Automotive Group Tom Wood Lexus Tomassetti Distributors Tommy Morgan Coldwell Banker Too Far Top Flight Media Torco Racing Fuels, Inc Toro Toshiba Town and Country Ford Town n Country Motorsports Townsend Ford Toyota Toyota - Milwaukee Toyota (Boston Regional Office) Toyota (Merchandising Manager) Toyota (Pivec Advertising) Toyota Bldgs -Saatchi Toyota Canada Toyota Certified Used Vehicles Toyota Courtesy Vehicles Toyota Motor Sales - Denver Region Toyota Motor Sales USA Toyota Motor Sales, U S.A., Inc. Toyota Motor Sales, USA Toyota of chula Vista TPI Metro PA Inc Tracker Marine Tractor Supply Co. TRADER PUBLICATIONS Trader Publishing Company Trail Tire Trans World Entertainment Trans World Entertainment Corp Trans World Entertainment Corp, Trans World Entertainment for F.Y:E:. Travel Alberta Traveler's RV - Reno Travelodge Auburn Travelwlse Treads & Sleds Tremonts Suites Trendline Marketing Trendwest Trendwest Resorts, Inc.. Trib Total Media Tribe Mediterrean Foods Inc. Tri -County Equipment Triple L Powersports Triple S Tire and Brake TriStar Energy Trixie's Western Outfittters TruGreen ChemLawn Trump Ocean Resort Baja TSC Direct Tucson Motorsports Tuff Shed Tuffy Tufts Tufts Health Plan Tumble Creek TOMS Diner Mobile Unit Turkey Hill Tweeter Home Entertainment Group Twenty Horse Tavern Twin Rivers Twocan Advertising - Lexington Motorsports TXU Energy Tyson h U.S. Air Force U.S. Airforce - PA U.S, Army U.S. Army - Harrisburg U..S. Army - NY/CT U.S., Army - Pittsburgh U..S. Army NE U,.S., Army Recruiting Battalion Nashville U . Army Recruiting Command (Central FL) U..S, Army Recruiting Command (North FL) U . Bank U Cellular U,S Department of Health & Human Services U.S., Marines Ubisoft Ultimate Class Limousine, Inc, Ultimate Hobbies Ultimate Truck Accessories UMB Bank UMMC Umstead Hotel and Spa Unbound Energy Drink Uni Filter UNILEVER Unilever Ice Cream Union Bank of California Union Beverage Union Broadcasting Inc United Healthcare-Uniprise Strategic United Online United On-Line United Rentals United Rentals, Inc. United States Army United States Marine Corps United States Marines United States Postal Service Universal Concessions Universal Hilton Universal Liquor Universal McCann Universal Studios Hollywood University of Massachussetts University of Phoenix Upper Crust UPS Upstate Farms Upstate Toyota Dealers Association US Airways US Army US Army - Mobile US Army National Guard (PA) US Army Recruiting Battalion, Harrisburg US Bank US Coast Guard US Indoor Advertising, LLC. US Marines US Navy US Navy Recruiting US Seal Coat USMC UTI/MMI Valenti Management - Wendy's Valero San Antonio Valley Recreation Vehicles Valley Yamaha of Harlingen Value City Furniture Valvoline instant Oil Change Vandervest Custom Cycles Veolia Water Vera Bradley Designs Verizon Verizon 2007 - Nexus Properties Verizon Festival Pier Verizon FRCS Verizon Pittsburgh Verizon PNC Bank Arts Ctr Verizon VA Beach Verizon Wireless Verizon Wireless - Seattle Verizon Wireless Communications Verizon Wireless hidalgo Verizon Yellow Pages Vertex Vertical Marketing Vespa Victor's Pub Victory Lane Power Sports Vienna Beef Village Voice Media VIP Limo Virgin America Virgin Mobile Virginia honda And Yamaha Virginia Lottery Virginia Marti College Virtue Hospital Visa U„S,.A Inc. Visuwall Ink Vital Marketing Vitamin Water Vivid Sport Marketing Vizio VMA Enterprises LLC d/b/a Dropkick Media Group Volkswagen Volvo Cars Volvo Cars of North America Vonage Voss Water W Hotels Wachovia Securities Wachovia(houston) Wahl Walgreens Walker Advertising, Inc. Walker Associates (McDonald's) Wallis Companies Wal-Mart Walnut Creek Marriott WAQY/WLZX Warehouse Shoe Sale WARREN CAT Warren's Harley-Davidson, Inc. Washington Credit Untion League Washington Lottery Washington Mutual Washington Mutual San Antonio Washington Mutual Savings Bank Washington National Guard Waste Management Waterfront Business Association wawa WCCC WDAF Fox TV4 Webloyalty Webster University Weekend Warrior Welk Resort Group Wellington Golf Cars Wellington Regional Wells Fargo Well's Fargo Wells Fargo Bank Wendys Wendy's Wendy's - Cedar Enterprises Wendy's - Charleston Wendy's - Halifax Wendy's - Salinas Wendy's (Blitz Media) Wendy's (M2 Universal) Wendy's (meritage Hospitality Group) Wendy's (Raleigh) Wendy's Cincy Wendy's Edmonton Wendy's international Wendy's International, Inc Wendy's International, Inc. Wendy's Midwest Wendy's of Pikeville Wendy's Philadelphia Wesgate Resorts West Hills Honda West Penn Laco Inc. West Side Honda and Kawasaki West Virginia Convention & Visitors Bureau West Wayne, Inc.. Westcoast Events Westfield Mall Westin Boston Waterfront WFAA WFMS White Rock Distilleries Whitman Ford Whitt's Harley-Davidson/Buell Whole Foods Wieden Kennedy WIL Radio Wild Wing Cafe Wilke Window & Door Wilks Broadcasting Williams Crawford & Associates Williams/Crawford & Associates (Taco Bell) Willow Financial Bank Willow Tree Wilson Farms Wilson Media (1 -800 -ASK -GARY) Wilson's Motorcycles W i ndowizards Windstream Communications Wingate Inn Wireless Toyz WISH TV WJLA-TV WNBA Be Tour WNKS/WKQC WOAI TV Wolverine Boots and Shoes Woodforest National Bank Woodlands Marriot Waterway Work Out World World Class Limo World Cyber Games WPTV-TV Wrangler WRAT Wrigley WRKI WRMF-Radio WRQX WSOC/ WFNZ marketing trade WTIC-FM WTOVTV9 WTSP News Channel 10 WTTS Radio Wunderman WVIT NBC-30 WWHD/CW WXKS FM WXXA-TV Fox 23 WYNDHAM HOTEL Wyndham Phoenix WyoTech WZLX WZLX - CBS Radio X Box Xavix XBOX XELA Communications XM Satellite Radio Xtra Mart Yale Clinical Research Yamaha Yamaha - Northeast Yamaha - VA Yamaha Canada Yamaha City Yamaha dealers Yamaha DM Yamaha Motor Corporation Yamaha Motor Corporation, U.S A, Yamaha of Pikeville Yamaha-Watercraft Group Company Yankee Gas Yavapai Casino Yellow Pages YELLOWBOOK Yum Brands Zarda BBQ Ziebart Zimmerman & Partners Zimmerman Advertising Zions Bank Zune EXHIBIT "H" LICENSE AGREEMENT THIS LICENSE AGREEMENT ("Agreement"), dated , 2007, is by and between ("Licensor") whose address is and ("Licensee") whose address is For and in consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 1. Term. Licensor hereby grants to Licensee the privilege and license to use designated portions of certain real property located in the City of Miami Beach, Florida, which real property is operated by Licensor and known as The Fillmore Miami Beach at the Jackie Gleason Theater ("Facility"), for the "Term" of this Agreement, which shall be , 2007, to include load -in and load -out of the Event (as defined below) Unless otherwise agreed in writing by Licensor, those portions of the Facility that the Licensee shall utilize arc restricted to the stage and backstage area, public seating area, public concession area (e..g.. the consumer side of the concession areas), interior public plazas and areas, and the loading dock Upon the expiration of the Tenn or the termination of this Agreement for any reason whatsoever prior to the expiration of the Term, Licensee shall immediately quit and surrender the Facility to Licensor.. Licensee shall remove any goods or chattels brought onto or permitted by Licensor to be brought onto the Facility property. For non-compliance with the provisions of this paragraph, Licensee shall pay to Licensor all costs and expenses incurred by Licensor in the removal of' such goods or chattels. 2. Purpose. Licensee agrees that it shall use the Facility during the Term of this Agreement for the purpose of presenting an event ("Event") for The Event shall be open to the public with paid admission, if applicable, during a time period within the Term as approved by Licensor . Unless otherwise agreed to in writing by Licensor, the Event shall be held at no other times 3 Financial Settlement. In consideration for the grant of the license and use of the Facility and related services as provided herein, Licensee shall (i) pay to Licensor a fee ("License Fee") in the amount of Dollars ($ • ) which is payable on or before the date of the Event, and a portion thereof shall be payable as a non-refundable deposit in the amount of Dollars ($ ) which shall be due and payable on or before , 20_ [THE LICENSE FEE IS NOT APPLICABLE FOR THE FREE USES UNDER SECTIONS 2.4(a), (b), or (c) OF THE MANAGEMENT AGREEMENT AND SHOULD BE $0 IN THOSE INSTANCES] and (ii) promptly (within ten (10) business days after receipt of written invoice therefor), reimburse Licensor for all actual expenses and costs incurred by Licensor to facilitate Licensee's use of the Facility hereunder, including, without limitation, Live Nation's standard charges for janitorial, clean up, crowd and traffic control, set- up and tear -down costs and fees and charges (including for materials, labor and other services directly necessitated by the occurrence of Licensee's use of the Facility, Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement Licensor will have a first lien on all box office receipts for the Event to secure payment of all amounts owed to Licensor by Licensee hereunder In the event that Licensee has failed to pay to Licensor the amounts owed hereunder, at the time of settlement, Licensor will have the right to retain such amounts from the box office receipts for the Event. 4 Parking. Licensor shall not be obligated to provide or cause to be provided any parking whatsoever Specialized parking space may, at Licensor's sole discretion, be provided for Licensee's employees only, in locations designated by Licensor. Licensor shall not be responsible, under any circumstances, for any loss or damage occurring to automobiles brought onto the Facility by Licensee's employees, subcontractors or guests.. 5. Merchandise and Concessions. Unless otherwise agreed upon in writing by the parties hereto, (A) Licensor's designated food and beverage concessionaire shall sell all food and beverages and retain one hundred percent (100%) of the profits therefrom, and (B) Licensor's designated merchandise vendor shall sell all merchandise and retain one hundred percent (100%) of the profits therefrom, less taxes and any percentages owed to performing artists. Upon prior written notice from Licensee, Licensor shall ensure that there will be no sales of alcoholic beverages at the Facility during the Term 6. Ticketinrs.. All ticket sales for the Event shall be conducted through the Facility box office and the facilities of Licensor's designated ticketing agent All ticket sales shall be subject to service fees, and/or facility fees as provided by Licensor. Licensor reserves the right to retain a reasonable number of complimentary tickets for the Event for Licensor's use,. Licensor may have non -manifested corporate boxes and/or premium seats, for which tickets will not be included in the gross ticket receipts.. If applicable, Licensor will provide all premium seat customers (including, without limitation, box and season seats) at the Facility with tickets for their regular seats for the Event at no cost to Licensor. 7 Event Advertising and Promotion Licensee shall be responsible for producing and paying for any and all advertising and promotional materials in connection with the Event. All such materials shall be subject to the prior approval of Licensor. Licensee acknowledges and agrees that, notwithstanding any marketing or other related assistance which may be provided by Licensor (although Licensor is not obligated to provide same), Licensor has made no, and disclaims any purported or actual, representation or warranty as to the results and/or success which can be expected from the Event, including, without limitation, ticket sales and/or the profitability of the Event Licensee acknowledges and agrees that Licensor' shall in no way be responsible for the actual results fiom and/or the success, financial or otherwise, of the Event., Form Rev Date 1/17/2007 2 8. Booth / Commercial Space. In the event that Licensee desires to sell booth/commercial space ("Booth Space") at the Facility to vendors or exhibitors or otherwise permit vendors or exhibitors at the Facility ("Vendors") in connection with the Event, Licensee shall comply with the following provisions: A Licensee will first obtain Licensor's approval of each Vendor and that Vendor's operations in connection with the Event, B Licensee will assume sole control and responsibility for (i) all operations of all Vendors relating to the Event and (ii) requiring Vendors to comply with any applicable Facility rules and regulations. C. Licensee will be solely responsible for the payment of any and all taxes or other fees associated with the payments received from the Vendors or the use of the Booth Space. LICENSEE SHALL NOT ALLOW ANY OF THE FOREGOING INTO THE FACILITY OR THE SURROUNDING PROPERTY AT ANY TIME, WITHOUT LICENSOR'S PRIOR WRITTEN CONSENT: INTERACTIVE PHYSICAL GAMES AND ATTRACTIONS, MECHANICAL RIDES, BODY ART AND PIERCING, EXOTIC ANIMAI,S AND PYROTECHNICS. IN ADDITION TO ANY OTHER INDEMNIFICATION REQUIREMENTS SET FORTH HEREIN, LICENSEE SHALL INDEMNIFY, DEFEND, BE SOLELY LIABLE FOR AND HOLD, WAIVE AND RELEASE THE LICENSOR PARTIES (AS HEREIN DEFINED), HIARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, LAWSUITS, INJURIES OR LOSSES ARISING OUT OF THE INSTALLATION, OPERATION AND REMOVAL OF OR IN ANY MANNER RELATED TO THE BOOTH SPACE AND THE BOOTH VENDORS. 9, Use of Name of Facility / Recording Rights In the event that any printed materials or media is used to announce or promote the Event, Licensee shall use "The Fillmore Miami Beach at the .Jackie Gleason Theater" as the name of the Facility Licensee shall not permit any film, video, audio or other recording of the Event ("Recording") to take place without Licensor's prior written approval In the event that Licensor does permit any Recording, the following terms and conditions shall apply to such Recording: A. Licensee and its employees, agents, representatives and contractors understand and acknowledge that the Recording shall occur in locations approved by the Licensor, and that Licensor's staff shall have the right to (i) refuse entry into any portions of the Facility in its sole discretion or (ii) stop the Recording at any time if Licensor's staff deems it reasonably necessary to do so B, Licensee shall be responsible for any and all costs and expenses associated with the Recording, including, without limitation, union fees, additional security, FOTmRev Date 1/17/200"/ 3 equipment, early set-up/load-in, additional phones, office space, additional labor and supplemental catering in connection with the Recording. Payment for such costs and expenses and/or reimbursement for such costs and expenses to Licensor may be required in advance of the Event or at settlement of the Event, at Licensor's sole discretion., Licensee shall advance all arrangements/requirements concerning the Recording with a designated representative of the Licensor within a reasonable period of time prior to the Recording Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement C. Licensor reserves the right to charge an origination foe and/or shadowing fee in the amount of ($ _ ) for the granting of Recording rights, such fee shall be payable within business days after receipt of written invoice therefor. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement.. D. Licensee shall be solely responsible for securing in writing all necessary rights, authorizations and consents of and making any necessary payments to any and all third patties whose images, likenesses, marks or interests may be involved therein, including, without limitation, any performing artists, subjects of the Recording, unions, third party contractors or their employees or representatives, Event patrons, guests and invitees of the Facility and Facility sponsors. Licensee represents and warrants that it has full power and authority to conduct the Recording and has obtained, or will caused to be obtained prior to disseminating the Recording, all of the foregoing necessary rights, authorizations and consents.. E. The City of Miami Beach and Licensor shall be cr edited in any broadcast or other publication of the Recording Licensee represents, warrants and covenants that nothing contained in the end use in which the Recording is used will be in any way derogatory to The City of Miami Beach or Licensor or their related companies or entities, including, without limitation, parent and subsidiary corporations and divisions, and their employees, agents and representatives or the Facility, F. In addition to any other insurance requirements set forth herein, Licensee shall maintain appropriate Errors and Omissions coverage ("E & 0 Coverage") applicable to the Recording with limits of not less than $1,000,000.00. Such E & 0 Coverage shall have standard coverage, including, but not limited to, defamation, infringement of copyright, infringement of rights in material to be broadcast or in the manner of presentation thereof; invasion of privacy rights and unauthorized use of material. The City of Miami Beach and Licensor shall be named as additional insureds on the above E & 0 Coverage, G IN ADDITION TO ANY OTHER INDEMNIFICATION REQUIREMENTS SET FORTH HEREIN, LICENSEE AGREES TO DEFEND, INDEMNIFY, SHALL BE SOLELY LIABLE FOR AND HOLD, WAIVE AND RELEASE THE LICENSOR PARTIES (AS HEREIN DEFINED), HARMLESS atm Rev Date 1/17/2007 4 FROM ANY CLAIMS, LOSSES, LIABILITIES, DAMAGES, COSTS OR EXPENSES THAT MAY BE ASSERTED AGAINST THEM OR THAT THEY MAY INCUR (INCLUDING REASONABLE ATTORNEYS' FEES AND COURT COSTS) ARISING OUT OF RELATED TO (1) THE RECORDING AND/OR AND ANY SUBSEQUENT DISTRIBUTION AND/OR BROADCAST OF THE RECORDING OR (2) LICENSEE'S FAILURE TO OBTAIN ANY REQUIRED AUTHORIZATIONS OR CONSENTS. 10. Charitable Donations. In the event that Licensor permits and Licensee obtains the right to collect charitable donations in connection with the Event, Licensee warrants and represents that it will comply with all applicable laws, regulations and ordinances imposed by any governmental authority in collecting said donations. Licensee further agrees that it will be solely responsible for all tax and other liability related to such donations. Licensee's obligations under this paragraph shall sur vive the expiration or termination of this Agreement. 11.. Condition of Facility A. Acceptance of Facility. Licensee accepts the condition of the Facility as is and agrees to return the Facility to Licensor in the same condition as accepted by Licensee and Licensee hereby waives any claims against Licensor and the City of Miami Beach for defects in the Facility, including latent defects. Licensee has examined the Facility and is satisfied with the condition, fitness and order thereof' Commencement of the use of the Facility by Licensee shall be conclusive that the Facility was in good repair and in satisfactory condition, fitness and order when such use commenced, Licensee shall not paint, drill into or in any way mar or deface any part of the Facility Licensee shall immediately pay Licensor for the cost of repairing any damage to the Facility caused by the Event, Any amounts unpaid within ten (10) days after the end of the Terni shall accrue interest at the maximum amount allowed by law. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement„ B No Alterations or Improvements. Licensee shall not display or erect any lettering, signs, pictures, notices or advertisements upon any part of the outside or inside of the Facility or make any alterations or improvements in or to the Facility without the prior written consent of Licensor„ C. Maintenance of Facility. Licensee shall keep the Facility in an orderly condition and cause all refuse and debris to be properly discarded.. Licensor will have the hill right to collect and have custody of all articles and personal property left on the Facility or at the Facility after the expiration of the Term Any property so left will be deemed abandoned by Licensee and may be disposed of by Licensor, as Licensor sees fit, without any liability for any loss, damages or costs associated with such disposal, which liability will rest solely with Licensee. Fonn Rev Date 1/17/2007 5 12. Representations, Wan antics and Covenants. Licensor hereby represents and warrants that it has full power and authority to enter into this Agreement and to engage in the transaction contemplated hereby and that this Agreement is a valid obligation of'the Licensor and is binding upon the Licensor Licensee hereby represents and warrants that it has full power and authority to enter into this Agreement and to engage in the transaction contemplated hereby and that this Agreement is a valid obligation of the Licensee and is binding upon the Licensee. Licensee further represents and warrants that it shall not cause or permit, during the Tem, any hazardous substances, which are brought onto the Facility by Licensee, to be disposed of or otherwise released onto or under the Facility During the Term, Licensee shall obey and comply with all present and future laws, ordinances, rules and regulations of all governmental authorities in connection with the Event. Licensee warrants that any and all use or performance of copyrighted material in connection with the Event has been duly licensed and authorized by the appropriate performing rights organizations (including, without limitation, BMI, SESAC and ASCAP), copyright owners or their representatives and that any license or royalty fees owed to such persons or entities shall be paid by Licensee.. LICENSEE AGREES TO DEFEND, INDEMNIFY, SHALL BE SOLELY LIABLE FOR AND HOLD, WAIVE AND RELEASE THE LICENSOR PARTIES, FROM ANY CLAIMS, LOSSES, LIABILITIES, DAMAGES, COSTS OR EXPENSES THAT MAY BE ASSERTED AGAINST THEM OR THAT THEY MAY INCUR (INCLUDING REASONABLE ATTORNEYS' FEES AND COURT COSTS) ARISING OUT OF RELATED TO ANY VIOLATIONS OF SUCH INTELLECTUAL PROPERTY RIGHTS OR THE LAWS RELATING THERETO. Notwithstanding the foregoing, Licensor reserves the right to collect such payments from Licensee at Event settlement and remit to appropriate parties on Licensee's behalf'. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement. 13. INDEMNIFICATION. IN ADDITION TO ANY OTHER INDEMNIFICATION REQUIREMENTS SET FORTH HEREIN, LICENSEE AGREES TO DEFEND, INDEMNIFY, SHALL BE SOLELY LIABLE FOR AND HOLD, WAIVE AND RELEASE LICENSOR AND THE CITY OF MIAMI BEACH AND EACH OF THEIR RESPECTIVE PARENTS, MEMBERS, PARTNERS, AFFILIATES, DIVISIONS AND SUBSIDIARIES, AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, AGENTS AND REPRESENTATIVES (COLLECTIVELY, "LICENSOR PARTIES") HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, SUITS, LOSSES, INJURIES, LIABILITY AND DAMAGES (INCLUDING REASONABLE ATTORNEYS' FEES AND COURT COSTS) ARISING OR ALLEGED TO HAVE ARISEN OUT OF (A) ANY ACT OR OMISSION OF LICENSEE, ITS EMPLOYEES, AGENTS, VOLUNTEERS, CONTRACTORS, PATRONS, GUESTS, INVITEES, PARTICIPANTS AND PERFORMING ARTISTS; Form Rev Date 1/17/2007 6 AND/OR (B) THE PRESENTATION OR PERFORMANCE OF THE EVENT AND/OR (C) LICENSEE'S BREACH OF ANY OF THE PROVISIONS OF THIS AGREEMENT. THE PARTIES AGREE, HOWEVER, THAT THE FOREGOING INDEMNITY, WAIVER AND RELEASE DOES NOT INCLUDE ANY CLAIMS, DEMANDS, SUITS, LIABILITIES, EXPENSES, ETC. THAT ARISE OUT OF SUCH LICENSOR PARTY'S SOLE NEGLIGENCE OR WILLFUL MISCONDUCT. LICENSEE AGREES TO USE AND OCCUPY TI -IE FACILITY AND TO PLACE MATERIAL, EQUIPMENT AND OTHER PROPERTY THEREIN AT ITS OWN RISK AND HEREBY RELEASES THE LICENSOR PARTIES FROM ALL CLAIMS FOR ANY DAMAGE OR INJURY ARISING THEREFROM. THE INDEMNIFICATION, WAIVER AND RELEASE PROVISIONS CONTAINED THROUGHOUT THIS AGREEMENT SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, Licensee will be solely responsible for the conduct and activities of Licensee's employees, agents, contractors, guests and invitees and, for purposes of the Agreement, such conduct and activities shall be deemed conduct and activities of Licensee.. Licensee and its employees, agents, contractors, guests and invitees will abide by all reasonable rales and regulations adopted by Licensor for the use, occupancy and operation of the Facility.. Licensee's obligations under this Section 13 shall survive the expiration or termination of this Agreement 14 Insurance Requirements Licensee will maintain and pay all premitun costs for, and will ensure that all of Booth Vendors and other contractors of Licensee maintain and pay for, the following insurance coverages in amounts not less than specified throughout the duration of the Term: A. Statutory Workers' Compensation including Employer's Liability Insurance, subject to limits of not less than $500,000 00, affording coverage under applicable worker's compensation laws. Licensee will cause, if allowed by law, its workers' compensation carrier to waive insurers right of subrogation with respect to the Licensor Parties.. B. Commercial General Liability Insurance for limits of not less than $1,000,000.00 per occurrence Bodily Injury and Property Damage combined; $1,000,000 00 per occurrence Personal and Advertising Injury; $2,000,000.00 aggregate Products and Completed Operations Liability; $100,000.00 Fire Legal Liability, and $2,000,000.00 general aggregate limit per event. The policy shall be written on an occurrence basis, C. Automobile Liability Insurance with a limit of not less than $1,000,000.00 combined and covering all owned, non -owned and hired vehicles. Foim Rev Date 1/17/2007 7 D. Umbrella Liability Insurance _ at not less than $4,000,000,00 limit providing excess coverage over all limits and coverages noted in paragraphs B and C above. This policy shall be written on an occurrence basis Policies B, C and D above (and, if' applicable, the E & 0 Coverage referenced herein) shall list Licensor, The City of Miami Beach, and their respective parents, members, partners, affiliates, divisions and subsidiaries, and their respective officers, directors, shareholders, employees, agents and representatives as "Additional Insureds" with respect to any and all claims arising from Licensee's operations. Further, coverage for the "Additional Insureds" will apply on a primary basis irrespective of any other insurance, whether collectible or not. Should any additional premium be charged for such coverages or waivers, Licensee will be responsible to pay said additional premium charge to their insurer. Licensee will deliver to Licensor satisfactory evidence of the aforedeseribcd insurance coverage on a certificate form approved by Licensor or, if required, copies of the policies. All required insurance will be placed with carriers licensed to do business in the State of Florida, have a rating in the most current edition of A.M Best's Property Casualty Key Rating Guide that is reasonably acceptable to Licensor and will provide thirty (30) days written notice of cancellation or non -renewal The insurance obligations stated in this Section are independent of; and shall not be affected by the scope or validity of,' any other indemnity, waiver, release or insurance provisions in other sections of this Agreement Licensee will ensure that all of' its contractors (including, without limitation, sponsors and Booth Vendors arranged by Licensee) who will be entering the Facility to engage in any business activity (including, without limitation, sampling, distributing, vending or other commercial activity) will comply with the foregoing insurance requirements and provide satisfactory evidence thereof' prior to the Event. 15. Sponsorships and Si maze. Licensee understands and agrees that Licensor has entered into signage and sponsorship relationships related to the Facility for which Licensor will retain all proceeds. Licensor reserves all rights to display signage at, on or near the Facility property. No signs or advertising boards, other than those authorized in writing by Licensor, will be allowed into, on or near the Facility Licensee will not mark, cover or attempt to modify any signage at, on or near the Facility.. Licensee is required to obtain Licensor's prior written approval of' any sponsorship relationships into which Licensee desires to enter for the Event. 16. Licenses and Permits Licensee will be responsible for obtaining and paying for all licenses or permits necessary for holding the Event, including, but not limited to, tax requirements and any permits required by governmental authorities for pyrotechnics or laser use, Form Rev Date 1/17/2007 8 17. Access Licensor, its officers, directors, servants, employees, agents, concessionaires and its concessionaire's servants, employees and agents shall at all times have free access to the Facility upon presentation of passes issued by Licensor. 18. Miscellaneous A. Third Party Beneficiaries. This Agreement does not confer any rights or benefits upon any persons or entities other. than Licensor and Licensee and their permitted, respective successors and assigns. There are no third party beneficiaries• B• Relationship of the Patties. Nothing contained in this Agreement will be deemed to constitute Licensor and Licensee as partners or joint venturers with each other. Each patty acknowledges and agrees that it neither has nor will give the appearance or impression of having any legal authority to bind or commit the other party in any way, Licensee agrees that it .will be solely responsible for the payment of all wages, federal, state and local income taxes, as well as all workers' compensation insurance requirements for all personnel it supplies pursuant to this Agreement. C Entire Agreement and Modification., This Agreement contains the entire agreement between the patties relating to the subject matter hereof and all prior agreements relative hereto which are not contained herein are terminated, This Agreement may not be amended, revised or terminated except by a written instrument executed by the Party against which enforcement of the amendment, revision or termination is asserted, D Assignment This Agreement or any part hereof may be assigned or transferred by Licensor to any person or entity which acquires ownership or management of the Facility. Neither this Agreement nor any part hereof shall be transferred, conveyed or assigned by Licensee without the prior written consent of Licensor.. E.. Apnlicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State in which the F acility is located without regard to any theory ofthe conflict of laws. F. Use by Licensor. It is specifically agreed and understood that Licensor. has the right to occupy and use the Facility during the Terni and to license any portion thereof; provided that such use or license does not unreasonably interfere with Licensee's use ofthe Facility. G. Utilities, No interruption or malfunction of any utility services, whether such services are provided by Licensor or arranged for by Licensee, shall (i) constitute an eviction or disturbance of Licensee's use and possession of the Facility or a breach by Licensor of any obligations hereunder, (ii) render Licensor liable for damages, or (iii) entitle Licensee to be relieved of' any obligations hereunder. In the event of any such FotmRev Date 1/17/2007 9 interruption of service provided by Licensor, Licensor shall be obligated only to use reasonable diligence to restore such service H.. Force Majeure The failure of any party hereto to comply with the terms and conditions hereof because of a "Force Majeure Occurrence" shall not be deemed a breach of this Agreement. "Force Majeure Occurrence" shall be defined to include, without limitation, Act of God, strike, labor disputes, war, fire, earthquake, hurricane, tornado, flood, storm surge, acts of public enemies, acts of'tertorism, epidemic, action of federal, state or local governmental authorities or an event or reason beyond the reasonable control of a party,. In the event of a cancellation of the Event due to a Force Majeure Occurrence, each party shall be relieved of its obligations hereunder with respect to the performance so prevented. I. Taxes. Any and all sales tax, amusement tax or other tax imposed by local, state, provincial or federal government as a result of the presentation of the Event and/or performance of any services rendered by Licensor in connection with this Agreement hereunder, shall be the responsibility of and paid for by Licensee at the time required by law (excepting any state or federal income tax imposed on Licensor). Licensee's obligations under this par agraph shall survive the expiration or termination of this Agreement T. No Waiver of' Rights,. If either party fails to enforce any of the provisions of this Agreement or any rights or fails to exercise any election provided in the Agreement, it will not be considered to be a waiver of those provisions, rights or elections or in any way affect the validity of this Agreement The failure of either party to exercise any of these provisions, rights or elections will not preclude or prejudice such party from later enforcing or exercising the same or any other provision, tight or election which it may have under this Agreement K. Invalidity. If any term, provision, covenant or condition of the Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, impaired or invalidated L Notices. All notices given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally with receipt acknowledged or sent by registered or certified mail or equivalent, if available, return receipt requested, or by nationally recognized overnight courier for next day delivery, addressed or sent to the parties at the addresses set forth herein with a copy to Live Nation, 9348 Civic Center Drive, 3rd Floor, Beverly Hills, California, 90210, Attn: Cindy Parks, Senior Counsel, Venues and Alliances M. Exclusive Venue And Waiver Of Trial By Jury. The exclusive venue for any litigation arising out of this Agreement shall be Miami -Dade County, Florida, if in state court, and the U.,S, District Court, Southern District of Florida, if in federal court Form Rev Date 1/17/2007 10 BY ENTERING INTO THIS AGREEMENT, LICENSOR AND LICENSEE EXPRESSLY WANE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT ACCEPTED AND AGREED as of the date and year first above written.. By: By: Name: Name: Title: Title: Fo rnRevDate 1/17/2007 1 j EXHIBIT "11-1" LICENSE AGREEMENT THIS LICENSE AGREEMENT ("Agreement"), dated , 2007, is by and between ("Licensor") whose address is and ("Licensee") whose address is For and in consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 1. Term Licensor hereby grants to Licensee the privilege and license to use designated portions of certain real property located in the City of Miami Beach, Florida, which real property is operated by Licensor and known as The Fillmore Miami Beach at the Tackle Gleason Theater ("Facility"), for the "Term" of this Agreement, which shall be , 2007, to include load -in and load -out of the Event (as defined below). Unless otherwise agreed in writing by Licensor, those portions of the Facility that the Licensee shall utilize are restricted to the stage and backstage area, public seating area, public concession area (e.g. the consumer side of the concession areas), interior public plazas and areas, and the loading dock.. Upon the expiration of the Term or the termination of this Agreement for any reason whatsoever prior to the expiration of the Term, Licensee shall immediately quit and surrender the Facility to Licensor. Licensee shall remove any goods or chattels brought onto or permitted by Licensor to be brought onto the Facility property.. For non-compliance with the provisions of this paragraph, Licensee shall pay to Licensor all costs and expenses incurred by Licensor in the removal of' such goods or chattels, 2.. Purpose Licensee agrees that it shall use the Facility during the Term of this Agreement for the purpose of presenting an event ("Event") for The Event shall be open to the public with paid admission, if applicable, during a time period within the Term as approved by Licensor. Unless otherwise agreed to in writing by Licensor, the Event shall be held at no other times 3 Financial Settlement., In consideration for the grant of the license and use of the Facility and related services as provided herein, Licensee shall promptly (within ten (10) business days after receipt of written invoice therefor), reimburse Licensor for all actual expenses and costs incurred by Licensor to facilitate Licensee's use of the Facility hereunder, including, without limitation, Live Nation's standard charges for janitorial, clean up; crowd and traffic control, set-up and tear -down costs and fees and charges (including for materials, labor and other services) directly necessitated by the occurrence of Licensee's use of the Facility, Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement.. 4 Parking. Licensor shall not be obligated to provide or cause to be provided any parking whatsoever. Specialized parking space may, at Licensor's sole discretion, be provided for Licensee's employees only, in locations designated by Licensor.. Licensor shall not be responsible, under any circumstances, for any loss or damage occurring to automobiles brought onto the Facility by Licensee's employees, subcontractors or guests,. 5. Merchandise and Concessions Unless otherwise agreed upon in writing by the parties hereto, (A) Licensor's designated food and beverage concessionaire shall sell all food and beverages and r etain one hundred percent (100%) of' the profits therefrom, and (B) Licensor's designated merchandise vendor shall sell all merchandise and retain one hundred percent (100%) of the profits therefrom, less taxes and any percentages owed to performing artists.. Upon prior written notice from Licensee, Licensor shall ensure that there will be no sales of alcoholic beverages at the Facility during the Term.. 6. Ticketing, All ticket sales for the Event shall be conducted through the Facility box office and the facilities of Licensor's designated ticketing agent. All ticket sales shall be subject to service fees, and/or facility fees as provided by Licensor Licensor reserves the right to retain a reasonable number of complimentary tickets for the Event for Licensor's use. Licensor may have non -manifested corporate boxes and/or premium seats, for which tickets will not be included in the gross ticket receipts. If applicable, Licensor will provide all premium seat customers (including, without limitation, box and season seats) at the Facility with tickets for their regular seats for the Event at no cost to Licensor 7.. Event Advertising and Promotion. Licensee shall be responsible for producing and paying for any and all advertising and promotional materials in connection with the Event., All such materials shall be subject to the prior approval of Licensor.. Licensee acknowledges and agrees that, notwithstanding any marketing or other related assistance which may be provided by Licensor (although Licensor is not obligated to provide same), Licensor has made no, and disclaims any purported or actual, representation or warranty as to the results and/or success which can be expected from the Event, including, without limitation, ticket sales and/or the profitability of the Event.. Licensee acknowledges and agrees that Licensor shall in no way be responsible for the actual results from and/or the success, financial or otherwise, of the Event.. 8 Booth / Commercial Space. In the event that Licensee desires to sell booth/commercial space ("Booth Space") at the Facility to vendors or exhibitors or otherwise permit vendors or exhibitors at the Facility ("Vendors") in connection with the Event, Licensee shall comply with the following provisions: A. Licensee will first obtain Licensor's approval of each Vendor and that Vendor's operations in connection with the Event. Emit Rev Date 1/17/2007 2 B.. Licensee will assume sole control and responsibility for (i) all operations of all Vendors relating to the Event and (ii) requiring Vendors to comply with any applicable Facility rules and regulations, C. Licensee will be solely responsible for the payment of any and all taxes or other fees associated with the payments received from the Vendors or the use of the Booth Space.. LICENSEE SHALL NOT ALLOW ANY OF THE FOREGOING INTO THE FACILITY OR THE SURROUNDING PROPERTY AT ANY TIME, WITHOUT LICENSOR'S PRIOR WRITTEN CONSENT: INTERACTIVE PHYSICAL GAMES AND ATTRACTIONS, MECHANICAL RIDES, BODY ART AND PIERCING, EXOTIC ANIMALS AND PYROTECHNICS„ LICENSEE SHALL BE SOLELY LIABLE FOR AND WAIVES AND RELEASES THE LICENSOR PARTIES (AS HEREIN DEFINED), FROM ANY AND ALL CLAIMS, LAWSUITS, INJURIES OR LOSSES ARISING OUT OF THE INSTALLATION, OPERATION AND REMOVAL OF OR IN ANY MANNER RELATED TO THE BOOTH SPACE AND THE BOOTH VENDORS, 9 Use of Name of Facility / Recordina Rights, In the event that any printed materials or media is used to announce or promote the Event, Licensee shall use "The Fillmore Miami Beach at the Jackie Gleason Iheater" as the name of the Facility Licensee shall not permit any film, video, audio or other recording of the Event ("Recording") to take place without Licensor's prior written approval. In the event that Licensor does permit any Recording, the fallowing terms and conditions' shall apply to such Recording: A.. Licensee and its employees, agents, representatives and contractors understand and acknowledge that the Recording shall occur in locations approved by the Licensor, and that Licensor's staff shall have the right to (i) refuse entry into any portions of the Facility in its sole discretion or (ii) stop the Recording at any time if Licensor's staff deems it reasonably necessary to do so, B. Licensee shall be responsible for any and all costs and expenses associated with the Recording, including, without limitation, union fees, additional security, equipment, early set-up/load-in, additional phones, office space, additional labor and supplemental catering in connection with the Recording.. Payment for such costs and expenses and/or reimbursement for such costs and expenses to Licensor may be required in advance of the Event or at settlement of the Event, at Licensor's sole discretion. Licensee shall advance all arrangements/requirements concerning the Recording with a designated representative of the Licensor within a reasonable period of time prior to the Recording. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement. C Licensor reserves the right to charge an origination fee and/or shadowing Form Rey Date 1/1'7/2007 3 fee in the amount of ($ ) for the granting of Recording rights, such fee shall be payable within business days after receipt of written invoice therefor. Licensee's obligations under this paragraph shall survive the expiration or termination of' this Agreement D. Licensee shall be solely responsible for securing in writing all necessary rights, authorizations and consents of and making any necessary payments to any and all third patties whose images, likenesses, marks or interests may be involved therein, including, without limitation, any performing artists, subjects of the Recording, unions, third party contractors or their employees or representatives, Event patrons, guests and invitees of the Facility and Facility sponsors.. Licensee represents and wanants that it has full power and authority to conduct the Recording and has obtained, or will caused to be obtained prior to disseminating the Recording, all of the foregoing necessary rights, authorizations and consents. E The City of Miami Beach and Licensor shall be credited in any broadcast or other publication of the Recording Licensee represents, warrants and covenants that nothing contained in the end use in which the Recording is used will be in any way derogatory to The City of Miami Beach or Licensor or their related companies or entities, including, without limitation, parent and subsidiary corporations and divisions, and their employees, agents and representatives or the Facility F . In addition to any other insurance requirements set forth herein, Licensee shall maintain appropriate Errors and Omissions coverage ("E & 0 Coverage") applicable to the Recording with limits of not less than $1,000,000 00. Such E & 0 Coverage shall have standard coverage, including, but not limited to, defamation, infringement of copyright, infringement of rights in material to be broadcast or in the manner of presentation thereof; invasion of privacy rights and unauthorized use of material The City of Miami Beach and Licensor shall be named as additional insureds on the above E & 0 Coverage. G. LICENSEE SHALL BE SOLELY LIABLE FOR AND WAIVES AND RELEASES THE LICENSOR PARTIES, FROM ANY CLAIMS, LOSSES, LIABILITIES, DAMAGES, COSTS OR EXPENSES THAT MAY BE ASSERTED AGAINST THEM OR TIIAT THEY MAY INCUR (INCLUDING REASONABLE ATTORNEYS' FEES AND COURT COSTS) ARISING OUT OF RELATED TO (1) THE RECORDING AND/OR AND ANY SUBSEQUENT DISTRIBUTION AND/OR BROADCAST OF THE RECORDING OR (2) LICENSEE'S FAILURE TO OBTAIN ANY REQUIRED AUTHORIZATIONS OR CONSENTS. 10. Charitable Donations In the event that Licensor permits and Licensee obtains the right to collect charitable donations in connection with the Event, Licensee warrants and represents that it will comply with all applicable laws, regulations and ordinances imposed by any governmental authority in collecting said donations Licensee further agrees that it will be F cam Rev Date 1/17/2007 4 solely responsible for all tax and other liability related to such donations. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement 11 Condition ofFacilitv., A Acceptance of Facility. Licensee accepts the condition of the Facility as is and agrees to return the Facility to Licensor in the same condition as accepted by Licensee and Licensee her waives any claims against Licensor and the City of Miami Beach for defects in the Facility, including latent defects. Licensee has examined the Facility and is satisfied with the condition, fitness and order thereof'. Commencement of the use of the Facility by Licensee shall be conclusive that the Facility was in good repair and in satisfactory condition, fitness and order when such use commenced. Licensee shall not paint, drill into or in any way mar or deface any part of the Facility. Licensee shall immediately pay Licensor for the cost of' repairing any damage to the Facility caused by the Event Any amounts unpaid within ten (10) days after the end of the Term shall accrue interest at the maximum amount allowed by law. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement.. B No Alterations or Immovements. Licensee shall not display or erect any lettering, signs, pictures, notices or advertisements upon any part of the outside or inside of the Facility or make any alterations or improvements in or to the Facility without the prior written consent of Licensor.. C Maintenance of Facility. Licensee shall keep the Facility in an orderly condition and cause all refuse and debris to be properly discarded. Licensor will have the full right to collect and have custody of all articles and personal property left on the Facility or at the Facility after the expiration of the Term,. Any property so left will be deemed abandoned by Licensee and may be disposed of by Licensor, as Licensor sees fit, without any liability for any loss, damages or costs associated with such disposal, which liability will rest solely with Licensee. 12. Representations, Warranties and Covenants. Licensor hereby represents and warrants that it has fitll power and authority to enter into this Agreement and to engage in the transaction contemplated hereby and that this Agreement is a valid obligation of the Licensor and is binding upon the Licensor. Licensee hereby represents and wan ants that it has full power and authority to enter into this Agreement and to engage in the transaction contemplated hereby and that this Agreement is a valid obligation of the Licensee and is binding upon the Licensee Form Rev Date 1/17/2007 5 Licensee further represents and warrants that it shall not cause or permit, during the Tenn, any hazardous substances, which are brought onto the Facility by Licensee, to be disposed of or otherwise released onto or under the FaciIity.. During the Term, Licensee shall obey and comply with all present and future laws, ordinances, rules and regulations of all governmental authorities in connection with the Event Licensee warrants that any and all use or performance of copyrighted material in connection with the Event has been duly licensed and authorized by the appropriate performing rights organizations (including, without limitation, BMI, SESAC and ASCAP), copyright owners or their representatives and that any license or royalty fees owed to such persons or entities shall be paid by Licensee. LICENSEE SHALL BE SOLELY LIABLE FOR AND WAIVES AND RELEASES THE LICENSOR PARTIES, FROM ANY CLAIMS, LOSSES, LIABILITIES, DAMAGES, COSTS OR EXPENSES THAT MAY BE ASSERTED AGAINST THEM OR THAT THEY MAY INCUR (INCLUDING REASONABLE ATTORNEYS' FEES AND COURT COSTS) ARISING OUT OF RELATED TO ANY VIOLATIONS OF SUCH INTELLECTUAL PROPERTY RIGHTS OR THE LAWS RELATING THERETO. Notwithstanding the foregoing, Licensor reserves the right to collect such payments from Licensee at Event settlement and remit to appropriate parties on Licensee's behalf. Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement 13. RELEASE. LICENSEE HEREBY WAIVES AND RELEASES LICENSOR AND ITS PARENTS, MEMBERS, PARTNERS, AFFILIATES, DIVISIONS AND SUBSIDIARIES, AND EACH OF TIIEIR RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, AGENTS AND REPRESENTATIVES (COLLECTIVELY, "LICENSOR PARTIES") FROM AND AGAINST ANY AND ALL CLAIMS, SUITS, LOSSES, INJURIES, LIABILITY AND DAMAGES (INCLUDING REASONABLE ATTORNEYS' FEES AND COURT COSTS) ARISING OR ALLEGED TO HAVE ARISEN OUT OF (A) ANY ACT OR OMISSION OF LICENSEE, ITS EMPLOYEES, AGENTS, VOLUNTEERS, CONTRACTORS, PATRONS, GUESTS, INVITEES, PARTICIPANTS AND PERFORMING ARTISTS; AND/OR (B) THE PRESENTATION OR PERFORMANCE OF THE EVENT. THE PARTIES AGREE, HOWEVER, THAT THE FOREGOING WAIVER AND RELEASE DOES NOT INCLUDE ANY CLAIMS, DEMANDS, SUITS, LIABILITIES, EXPENSES, ETC. THAT ARISE OUT OF SUCH LICENSOR PARTY'S SOLE NEGLIGENCE OR WILLFUL MISCONDUCT. LICENSEE AGREES TO USE AND OCCUPY THE FACILITY AND TO PLACE MATERIAL, EQUIPMENT AND OTHER PROPERTY THEREIN AT ITS OWN RISK AND HEREBY RELEASES THE LICENSOR PARTIES FROM ALL CLAIMS FOR ANY DAMAGE OR INJURY ARISING THEREFROM. Licensee will be solely responsible for the conduct and activities of Licensee's employees, agents, contractors, guests and invitees and, for purposes of the Agreement, such Form Rev Date 1/17/200'7 6 conduct and activities shall be deemed conduct and activities of Licensee Licensee and its employees, agents, contractors, guests and invitees will abide by all reasonable rules and regulations adopted by Licensor for the use, occupancy and operation of the Facility Licensee's obligations under this Section 13 shall survive the expiration or termination of this Agreement.. 14.. Insurance Requirements.. Licensee will maintain and pay all premium costs for, and will ensure that all of Booth Vendors and other contractors of Licensee maintain and pay for, the following insurance coverages in amounts not less than specified throughout the duration of the Term: A Statutory Workers' Compensation including Employer's Liability Insurance, subject to limits of not less than $500,000.00, affording coverage under applicable worker's compensation laws Licensee will cause, if allowed by law, its workers' compensation carrier to waive insurers right of subrogation with respect to the Licensor Parties, B. Commercial General Liability Insurance for limits of not less than $1,000,000 00 per occurrence Bodily Injury and Property Damage combined; $1,000,000 00 per occurrence Personal and Advertising Injury; $2,000,000.00 aggregate Products and Completed Operations Liability; $100,000..00 Fire Legal Liability, and $2,000,000 00 general aggregate limit per event, The policy shall be written on an occurrence basis.. C Automobile Liability Insurance with a limit of not less than $1,000,000 00 combined and covering all owned, non -owned and hired vehicles., D. Umbrella Liability Insurance at not less than $4,000,000..00 limit providing excess coverage over all limits and coverages noted in paragraphs 13 and C above. This policy shall be written on an occurrence basis Policies B, C and D above (and, if applicable, the E & 0 Coverage referenced herein) shall list Licensor, The City of Miami Beach, and their respective parents, members, partners, affiliates, divisions and subsidiaries, and their respective officers, directors, shareholders, employees, agents and representatives as "Additional Insureds" with respect to any and all elaims arising from Licensee's operations Further, coverage for the "Additional Insureds" will apply on . a primary basis irrespective of any other insurance, whether collectible or not. Should any additional premium be charged for such coverages or waivers, Licensee will be responsible to pay said additional premium charge to their insurer.. Licensee will deliver to Licensor satisfactory evidence of the aforedescribed insurance coverage on a certificate form approved by Licensor or, if required, copies of the policies All required insurance will be placed with carriers licensed to do business in the State of Florida, have a rating in the most current edition of A M. Best's Property Casualty Key Rating Guide that is reasonably acceptable to Licensor and will provide thirty (30) days written notice of cancellation or non -renewal Licensee may elect to self -insure for the insurance coverage Form Rev Date 1/17/2007 7 required above, and if Licensee makes such an election, Licensee shall send to Licensor a letter from Licensee's Risk Manager agreeing to provide coverage as required above on a self- insurance basis and certifying that such self-insurance shall not reduce the coverage to Licensor as required above. The insurance obligations stated in this Section are independent of; and shall not be affected by the scope or validity of, any other waiver, release or insurance provisions in other sections of this Agreement. Licensee will ensure that all of its contractors (including, without limitation, sponsors and Booth Vendors arranged by Licensee) who will be entering the Facility to engage in any business activity (including, without limitation, sampling, distributing, vending or other commercial activity) will comply with the foregoing insurance requirements and provide satisfactory evidence thereof' prior to the Event 15.. Sponsorships and Signage. Licensee understands and agrees that Licensor has entered into signage and sponsorship relationships related to the Facility for which Licensor will retain all proceeds. Licensor reserves all tights to display signage at, on or near the Facility property„ No signs or advertising boards, other than those authorized in writing by Licensor, will be allowed into, on or near the Facility. Licensee will not mark, cover or attempt to modify any signage at, on or near the Facility Licensee is required to obtain Licensor's prior written approval of any sponsorship relationships into which Licensee desires to enter for the Event. 16 Licenses and Permits Licensee will be responsible for obtaining and paying for' all licenses or permits necessary for holding . the Event, including, but not limited to, tax requirements and any permits required by governmental authorities for pyrotechnics or laser use. 17. Access. Licensor, its officers, directors, servants, employees, agents, concessionaires and its concessionaire's servants, employees and agents shall at all times have free access to the Facility upon presentation of passes issued by Licensor.. 18 Miscellaneous, A, Third Party Beneficiaries.. This Agreement does not confer any rights or benefits upon any persons or entities other than Licensor and Licensee and their permitted, respective successors and assigns. Ihere are no third party beneficiaries B. Relationship of the Parties, Nothing contained in this Agreement will be deemed to constitute Licensor and Licensee as partners or joint venturers with each other Each party acknowledges and agrees that it neither has nor will give the appearance or impression of having any legal authority to bind or commit the other party in any way. Licensee agrees that it will be solely responsible for the payment of all wages, federal, koim Rea Date 1/17/2007 8 state and local income taxes, as well as all workers' compensation insurance requirements for all personnel it supplies pursuant to this Agreement. C Entire Aszreement and Modification. This Agreement contains the entire agreement between the patties relating to the subject matter hereof and all prion agreements relative hereto which are not contained herein are terminated. This Agreement may not be amended, revised or terminated except by a written instrument executed by the Party against which enforcement of the amendment, revision or termination is asserted. D.. Assia-nment.. This Agreement or any part hereof may be assigned or transferred by Licensor to any person or entity which acquires ownership or management of the Facility.. Neither this Agreement nor any part hereof shall be transferred, conveyed or assigned by Licensee without the prior written consent of Licensor.. E. Applicable Law This Agreement shall be governed by and construed in accordance with the laws of the State in which the Facility is located without regard to any theory of the conflict of laws F., Use by Licensor. It is specifically agreed and understood that Licensor has the right to occupy and use the Facility during the Term and to license any portion thereof, provided that such use or license does not unreasonably interfere with Licensee's use of the Facility. G. Utiliti es No interruption or malfunction of any utility services, whether such services are provided by Licensor or arranged for by Licensee, shall (i) constitute an eviction or disturbance of Licensee's use and possession of the Facility or a breach by Licensor of any obligations hereunder, (ii) render Licensor liable for damages, or (iii) entitle Licensee to be relieved of any obligations hereunder.. In the event of any such interruption of service provided by Licensor, Licensor shall be obligated only to use reasonable diligence to restore such service. lI.. Force Majeure The failure of any party hereto to comply with the terms and conditions hereof because of a "Force Majeure Occurrence" shall not be deemed a breach of this Agreement. "Force Majeure Occurrence" shall be defined to include, without limitation, Act of God, strike, labor disputes, war, fire, earthquake, hurricane, tornado, flood, storm surge, acts of public enemies, acts of terrorism, epidemic, action of federal, state or local governmental authorities or an event or reason beyond the reasonable control of a party.. In the event of a cancellation of the Event due to a Force Majeure Occurrence, each party shall be relieved of its obligations hereunder with respect to the performance so prevented I. Taxes., Any and all sales tax, amusement tax or other tax imposed by local, state, provincial or federal government as a result of' the presentation of the Event and/or performance of any services rendered by Licensor in connection with this Foxm Rev Date 1/17/2007 9 Agreement hereunder, shall be the responsibility of and paid for by Licensee at the time required by law (excepting any state or federal income tax imposed on Licensor)., Licensee's obligations under this paragraph shall survive the expiration or termination of this Agreement. T No Waiver of Rights If either party fails to enforce any of the provisions of this Agreement or any rights or fails to exercise any election provided in the Agreement, it will not be considered to be a waiver• of those provisions, rights or elections or in any way affect the validity of this Agreement. The failure of either party to exercise any of these provisions, rights or elections will not preclude or prejudice such party from later enforcing or exercising the same or any other provision, right or election which it may have under this Agreement, K. Invalidity If any term, provision, covenant or condition of the Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, impaired or invalidated L. Notices. All notices given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally with receipt acknowledged or sent by registered or certified mail or equivalent, if' available, return receipt requested, or by nationally recognized overnight courier for next day delivery, addressed or sent to the parties at the addresses set forth herein with a copy to Live Nation, 9348 Civic Center Drive, 3rd Floor; Beverly Hills, California, 90210, Attn: Cindy Parks, Senior Counsel, Venues and Alliances M Exclusive Venue And Waiver Of Trial By Jury The exclusive venue for any litigation arising out of this Agreement shall be Miami -Dade County, Florida, if in state court, and the U .. District Court, Southern District of Florida, if in federal court BY ENTERING INTO IHIS AGREEMENT, LICENSOR AND LICENSEE EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT.. ACCEPTED AND AGREED as of the date and year first above written. By: By: Name: Name: Title: Title: Form Rev Date 1/17/2007 10 EXHIBIT "B" DEPICTION OF THE "RECAPTURE AREA" (ATTACHED) 12 7 ' 1 ' Of I Convention Center Drive .y I I I I4 -117 1/1 -741__ '` 1 if— - f� r— -it -1+— ,I I„,\ r__,, I I i1 I 1 -- ; IAmor it I I .1\ - ✓ I I 4 1 7 } � ��11IIC I I 1ii �"P �Mlillli 1��h ' i \i..va�:.�.�� J �. O'.r _ — 1 11 I 12A21 123l:11S 1-i�1 Itl 1 1 i 1 I I i i 24 New Parking Spaces' 1 I V � I I —1 L q i t to i r L 1 EXHIBIT "C" CITY RESOLUTION NO. 2014-28732 (TO BE. INSERTED) 13 RESOLUTION NO. 2014-28732 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE TO ADOPT THE UPDATED CULTURAL AFFAIRS STRATEGIC PLAN, INCLUDING AN INCREASE IN THE NUMBER OF COMMUNITY BENEFIT FUND RENT WAIVERS AND THE CAPPING OF THE ANNUAL FUND BALANCE AT ITS CURRENT LEVEL OF $2,640,184, BUT PROVIDING FOR AN ANNUAL INCREASE FOR INFLATION, AND DIRECTING THE CITY ADMINISTRATION NOT TO UTILIZE THE CULTURAL ARTS COUNCIL ENDOWMENT FUND TO FUND SLEEPLESS NIGHT. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment, and benefit of the residents of, and visitors to, the City of Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Affairs Strategic Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, the CAC unanimously adopted an updated Cultural Affairs Strategic Plan at its March 6, 2014 meeting which is attached hereto and incorporated herein; and WHEREAS, the Finance and Citywide Projects Committee reviewed the updated Cultural Affairs Strategic Plan on May 20, July 18, and August 13, 2014, and recommended an increase in the number of Community Benefit Fund rent waivers and the capping of the annual fund balance at its current level of $2,640,184, with an annual increase for inflation based upon the Consumer Price Index, but recommended against utilizing the CAC Endowment Fund to fund Sleepless Night. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopt the updated Cultural Affairs Strategic Plan, including an increase in the number of Community Benefit Fund rent waivers and the capping of the annual fund balance at its current level of $2,640,184, but providing for an annual increase for inflation, and directing the City Administration not to utilize the CAC Endowment Fund to fund Sleepless Night. t. PASSED and ADOPTED THIS /0 day of Se "P)tber- 2014. ATTEST: Rafael E. Grana ... ttgttItICA —.tor 1 :.CL•ER INCORP ORATED. * �P Sttatef%�P'I,an FCWPC Recommendation RESO.docx \C� fl 26�" -14 c�'' T:\AGENDA\2014 Philip LevaOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attorney 1 (3(14 Date COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, adopting the updated Cultural Affairs Program strategic plan, including modifications to the Community Benefit Fund rent waiver program and the capping of the fund balance, but not including the release of CAC Endowment funds. Key Intended Outcome Supported: Maximize the Miami Beach Brand as a World Class Destination. Supporting Data (Surveys, Environmental Scan, etc.): Two out of three residents (65%) believed the City offered the right amount of cultural activities, while 30% said there were too few. The percentage of residents who believe there are too few cultural activities has increased from 24% in 2009 to 30% in 2014. Item Summary/Recommendation: The FCWP Committee recommended that the Administration cap the Cultural Affairs Program's fund balance at its current level of $2,640,184 and include an annual increase for inflation. If necessary these funds could adequately cover the expenses of the Cultural Affairs Program for two years. Funds remaining in the CAP budget at the end of each fiscal year would be added to the CAC's grant budget for the following fiscal year. The Committee also approved changes to the Fillmore Community Benefit Fund rent waiver program, including a requirement that rent waiver recipients be required to offer free or discounted tickets to Miami Beach residents. The number of rent waivers available annually would increase from 12 to 24, with the additional 12 waivers restricted to live theater productions. Waivers for use of the smaller 'Backstage" theater would require recipients to cap ticket prices at $19, inclusive of all house and Ticketmaster surcharges. The Committee did not approve the CAC's request to release the CAC Endowment Fund to support three annual Sleepless Night events. It is recommended that the City Commission adopt the strategic plan as indicated. Advisory Board Recommendation: I The Cultural Arts Council approved the proposed strategic plan draft on March 6, 2014. Financial Information: Source of Funds: OBPI 1 2 3 4 Total Financial Impact Summary: Amount Account City Clerk's Office Legislative Tracking: Max A. Sklar, Ext. 6116 Sign -Offs: Departmlt Director I Approved Assistant 9ty Manager I City Manager T:WGENDA120141September\TCED\CAP Strategic Plan FCWPC Recommendation SUMM,docx MIAMIBEACH AGENDA ITEM C 714/ DATE ID"/y ID MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of he City Com ssion FROM: Jimmy L. Morales, City Manager DATE: September 10, 2014 SUBJECT: A RESOLUTION OF THE MAYOR AdD CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE TO ADOPT AN UPDATED STRATEGIC PLAN FOR THE CULTURAL AFFAIRS PROGRAM, INCLUDING AN INCREASE IN THE NUMBER OF COMMUNITY BENEFIT FUND RENT WAIVERS AND THE CAPPING OF THE ANNUAL FUND BALANCE AT $2,640,184 WITH AN ANNUAL INCREASE FOR INFLATION, BUT NOT INCLUDING UTILIZING THE CULTURAL ARTS COUNCIL ENDOWMENT FUND TO FUND SLEEPLESS NIGHT. ADMINISTRATION RECOMMENDATION Adopt the Resolution, FUNDING The Cultural Affairs Program is funded by interest earned from the Miami Beach Convention Center Capital Fund, the GMCVB (per contract), Resort Taxes and Quality of Life funds. ANALYSIS The Cultural Affairs Program (CAP) in the Department of Tourism, Culture and Economic Development serves as an invaluable resource for the Miami Beach community and beyond. Working closely with the Miami Beach Cultural Arts Council (CAC), the 11 -member advisory board founded in 1997, CAP sustains, develops and supports the arts in Miami Beach for the enjoyment, education, enrichment and benefit of residents and visitors. Since 1997 the City has awarded more than $10 million to approximately 130 nonprofit arts groups through its annual cultural grants program. Further, CAP partners with the Miami Beach Visitor and Convention Authority to award grants to projects that generate substantial cultural tourism. CAP also provides active marketing assistance to individual cultural events and institutions, and markets Miami Beach as a cultural destination; supplementary arts education programs (since 2006) in Miami Beach schools and parks, serving more than 3,000 students annually; oversight of City -owned cultural facilities; and free outdoor arts programming through Arts in the Parks (since 2006), Sleepless Night (2007, 2009 and 2011) and SoundScape Cinema Series (since 2011). CAP staff met with the CAC Budget Committee on October 15, 2013 to formulate strategies and goals for a new strategic plan. The Committee's proposals were discussed by the CAC at its meetings on November 7 and December 12, 2013, and FCWPC Recommendation — CAC Strategic Plan Update City Commission Meeting September 10, 2014 Page 2 of 6 This item was discussed at the May 20, 2014 Finance and Citywide Projects Committee meeting and the staff was directed to provide more detail at the July meeting. Discussion continued at the July 18, 2014 meeting, where it was recommended that the CAC Endowment use be scaled back to one event and brought back to the FCWPC Budget Briefing meeting on August 15, 2014. Two other recommendations from the CAC were approved by the FCWP Committee on July 18th. The Committee recommended that the Administration cap the Cultural Affairs Program's fund balance at its current level of $2,640,184 and include an annual increase for inflation. If necessary these funds could adequately cover the expenses of the Cultural Affairs Program for two years. Funds remaining in the CAP budget at the end of each fiscal year would be added to the CAC's grant budget for the following fiscal year. The Committee also approved changes to the Fillmore Community Benefit Fund rent waiver program, including a requirement that rent waiver recipients be required to offer free or discounted tickets to Miami Beach residents. The number of rent waivers available annually would increase from 12 to 24, with the additional 12 waivers restricted to live theater productions. Waivers for use of the smaller 'Backstage" theater would require recipients to cap ticket prices at $19, inclusive of all house and Ticketmaster surcharges. Discussion continued at the FCWPC Budget Briefing on August 13, 2014, at which time the Committee recommended against releasing the Cultural Arts Council Endowment Fund to support three annual Sleepless Night events. Staff was directed to consult further with the Cultural Arts Council to recommend other proposed uses for the Endowment Fund. CONCLUSION The Mayor and City Commission should adopt the Cultural Affairs Program Strategic Plan, including the increase in Community Benefit Fund rent waivers and the capping of the annual fund balance, but not including the release of the CAC Endowment Fund. JLM/KGB/MAS/GF F:UNFO1$ALL\Gary F\Commission Docs1CAP Strategic Plan Memo, Reso and Summary.doc FCWPC Recommendation — CAC Strategic Plan Update City Commission Meeting September 10, 2014 Page 3 of 6 Exhibit "A" Cultural Affairs Program Strategic Plan draft To ensure that the needs and aspirations of the community are met moving into the future, CAP would concentrate on four areas: • Variety of cultural activities, opportunities and facilities • Growth of citizen participation, particularly among underserved and special needs populations • Partnership development • Value for all ages and ethnicities Since funding is key, CAP staff will work to increase grant funding and to identify new revenue streams, both from within the City (dedicated Quality of Life funding, Community Benefit Fund, Art in Public Places Fund) and without. OAP's current annual budget is $1,153,000, funded by the Greater Miami Convention and Visitors Bureau (per contract), Resort Taxes and Quality of Life funds. CAP currently has two restricted funds: a CAC endowment fund of $1,581,873, and a CAP Fund Balance in the amount of $2,640,184. The endowment fund was created by the CAC in an optimistic attempt to become self-sufficient, but no contributions to it have been made in several years. The Fund Balance serves as a "rainy day" fund to ensure that CAP operations and grants can continue in the event of a disastrous tourism year; it grows at the end of each fiscal year from leftover balances in CAP budget line items (unclaimed grants, excess marketing dollars, etc.) Revenue sources from outside the City could include corporate sponsorships and grants from government and private granting agencies and foundations. PROPOSED STRATEGIES AND GOALS Grants • Increase funding for our existing cultural assets, particularly our Cultural Anchors • Based on the success of the Byron bonus, North Beach Initiative, and Fresh Air Fund programs, craft further proactive grant programs to fulfill specific cultural needs (live theater for example), reach targeted age groups and ethnicities, and provide free programming in various parts of the City Marketing • Expand social media marketing efforts • Continue to refine mbculture.com website and mobile website • Continue paid marketing efforts to direct people to websites and to promote subscriptions to the weekly e -blast and the text messaging services • Reinstate Sleepless Night or a similar large-scale, major, annual, City -funded cultural festival that attracts global attention • Facilitate enhanced partnership with the hospitality industry Education • Expand in -school and after-school arts instruction at City schools, parks and youth centers through additional funding and/or corporate partnerships • Facilitate hands-on arts instruction programs for resident adults FCWPC Recommendation — CAC Strategic Plan Update City Commission Meeting September 10, 2014 Page 4 of 6 Cultural Facilities • Continue to facilitate the relationship between the City and the Friends of the Bass Museum • Propose expanded use agreement for Carl Fisher Clubhouse and Little Stage Theater to allow for more diverse cultural offerings for the community • Manage the Community Benefit Fund Rent Waiver Grants program for the Fillmore • Manage the SoundScape Wall Use Grants program • Facilitate a "youth only" exhibition and performance space • Encourage the city to set aside 20% of retail space in city garages for nonprofit arts uses Arts in the Parks • Expand offerings of live outdoor performances citywide • Increase SoundScape Cinema Series screenings and digital art projections • Promote local, resident -driven events and festivals to coincide with the residencies of major international trade shows for music, visual arts, etc Additional Services • Create a detailed, user-friendly manual to guide cultural providers through City processes, especially the Special Events Permit process • Create an up-to-date cultural asset inventory, including both permanent venues and appropriate temporary performance/exhibition locations • Maintain a Cultural Tourism calendar in cooperation with the GMCVB and MBVCA • Arrange with outside providers to create affordable equipment rental packages to transform indoor and outdoor spaces for performers FUNDING As previously mentioned a substantial amount of existing funding could be made available to CAP to realize these goals and strategies and strengthen Miami Beach's position as the preeminent cultural tourism destination in Florida. ENDOWMENT The original CAC created an endowment fund in 1998 with the thought that it would eventually grow large enough to provide enough income to fund the annual cultural grants program. From 1998 through 2001 the CAC contributed $200,000 annually. In 2002 $160,000 was contributed. The following year, due to decreased revenues from resort tax, no contribution was made. $50,000 was contributed in 2004, and $100,000 in both 2005 and 2006. Since that time no further contributions have been made, despite a significant increase in Resort Tax Quality of Life funding, since the CAC and the Administration agreed that greater public benefit would result from utilizing all available funds for grants and other cultural programming. The current balance of the endowment fund is $1,581,873. CAC feels that it is highly unlikely that this fund could ever grow large enough to provide a useful source of income, and proposes liquidating the endowment over a three-year period to cover increased programmatic expenses for Sleepless Night and other free outdoor programs. Unforeseen future expenses or reduction in Quality of Life funding would be covered by the Fund Balance. FUND BALANCE FCWPC Recommendation -- CAC Strategic Plan Update City Commission Meeting September 10, 2014 Page 5 of 6 The current CAP Fund Balance stands at $2,640,184. The CAC proposes capping the Fund Balance at this amount, which if necessary could adequately cover the expenses of the Cultural Affairs Program for two years. Funds remaining at the end of each fiscal year should be added to the CAC's grants budget for the following year. DEDICATED FUNDING One-half of one percent of Resort Tax collection accounts for Quality of Life funding. Originally divided into three parts (South Beach, Middle Beach and North Beach,) CAP was added as a fourth recipient in 2004. Last year a fifth recipient (the North Beach circulator) was added, with the stipulation that CAP funding would be frozen at current levels until the other four recipients reach equal funding. The CAC respectfully requests that the Mayor and Commission honor this ongoing commitment to arts funding and not allow further dilution of the Quality of Life funds. COMMUNITY BENEFIT FUND The Community Benefit Fund at the Jackie Gleason Theater was established by Resolution No. 83-17447 to provide discounted show tickets to senior citizen and student residents. It is funded by a $1.50 surcharge on each ticket sold. The fund's purpose was further defined by Resolution No. 92-20454 to "present and promote performances, programs, shows and entertainment at reduced prices or free admission for the residents of Miami Beach." Resolution No. 98-22762 created the Community Benefit Fund Rent Waiver program, which pays the operator for theater rental fee waivers for up to twelve non-profit organizations per calendar year. Management of the rent waiver program was transferred from the Convention Center Advisory Board to the Miami Beach Cultural Arts Council (CAC) in 2009. The CAC is proposing a new requirement that all future rent waiver recipients be required to offer free or discounted tickets to Miami Beach residents. At this writing the balance in the Community Benefit Fund is $746,822. Funds are currently used only for the discount ticket program and to pay the operator for the twelve rent waivers available each calendar year. The fund nets between $38,000 and $108,000 annually after the rent waiver and discount ticket program costs are deducted. The CAC is proposing to utilize the fund for greater community benefit by increasing the number of annual rental fee waivers from 12 to 24. This would allow the fund to continue to grow while meeting its other obligations, since the maximum cost of the additional waivers would be $36,000. The CAC feels strongly that the additional 12 waivers are necessary for the CAC to realize its initiative to increase live theater offerings in Miami Beach. The Colony Theatre is both too Targe and too expensive for most of South Florida's theater groups, and it has suffered a decrease in bookings as new alternative and more affordable venues have opened on the mainland. The Fillmore's new "backstage" performance space, which seats 204 persons, is an ideal size for local theater groups, and the CAC is proposing a new targeted pilot grant program to begin in Fall 2014 which, in tandem with the rental fee waiver program, would enable theater groups (and cabaret and spoken word artists) to rehearse and present their shows at no cost for the theater, sound and lighting equipment and technicians. Ticket prices, including all house and Ticketmaster surcharges, would be capped at $19. Waivers would continue to be available for the main theater as well, but the 12 additional waivers would be restricted for use with this new targeted live theater grant program. All rental fee waiver recipients would be required to offer free or discounted tickets to Miami Beach residents. FCWPC Recommendation - CAC Strategic Plan Update City Commission Meeting September 10, 2014 Page 6 of 6 Opening Surcharge Interest Ending Fiscal Year Balance Revenue Earned Grants Paid Balance FY 07/08 $188,666 $107,558 $8,373 ($7,799.00) $296,797 FY 08/09 $296,797 $50,879 $9,621 ($13,002.50) $344,295 FY 09/10 $344,295 $95,264 $6,899 1 ($28,400.00) $418,057 FY 10/11 $418,057 $88,757 $5,427 1 ($26,200.00) $486,042 FY 11/12 $486,042 $125,276 $4,793 ($23,400.00) $592,710 FY 12/13 $592,710 $102,409 I $4,195 1 ($40,400.00) $658,914 FY 13/14 $658,914 $108,988 I $2,121 1 ($23,200.00) $746,822 FY 14/15 Projected 1 $746,822 $97,018 $5,919 ($72,000.00) $777,759 FY 15/16 Projected 1 $777,759 $97,018 $5,919 ($72,000,00) $808,696 SLEEPLESS NIGHT The CAC believes that it is essential for the City to present a major annual citywide cultural festival to maintain its position as an international cultural destination. CAC members unanimously endorsed the return of an annual Sleepless Night, building on the existing substantial international recognition of the brand. Seed funding could derive from liquidation of the CAC endowment, with additional funding from sponsorships and grants. SLEEPLESS NIGHT was initiated in 2007 by the CAC as a way to focus the cultural spotlight on Miami Beach after the cancellation of the annual "Invitation to the Arts" at the Gleason. ft was more than just the cultural takeover of Miami Beach, with 150 free arts and entertainment offerings at 80 different locations spread throughout the city and the 13 -hour night that marks the end of Daylight Savings Time. It was in fact an enormous and successful intersection of community and culture that crossed all barriers of age, race, taste, economics and education. Its free programming was designed to appeal to every segment of our diverse population, providing a unique opportunity to create community through the universality of shared arts experiences. At the first Sleepless Night (November 3, 2007) an instant and enthusiastic community of 100,000 people enjoyed arts and entertainment offerings both familiar and new. The second Sleepless Night (November 7, 2009,) made possible by funding from the Knight Arts Challenge, drew more than 130,000 residents and visitors for free museum admissions, indoor and outdoor art installations and performances, street spectacle, music, dance, theater, comedy, circus and more, all connected by free shuttle buses with onboard arts programming. Sleepless Night is huge and inclusive: in one night it draws more than twice as many people as Art Basel Miami Beach or the South Beach Wine & Food Festival, and its residual effects for both artists and audiences are lasting. It sends the positive message that Art Matters to our residents, visitors and businesses. The 2009 event received nearly a billion media impressions and attracted artist inquiries from across the U.S., Europe, Canada and South America. The 2011 Sleepless Night, again with major Knight Foundation and National Endowment for the Arts funding, received similar local praise and international media coverage, including a feature in Travel &Leisure magazine and a segment on Good Morning America. The CAC firmly believes that Sleepless Night has the potential to be as significant as any of the international Nuit Blanche events if it can be held on an annual basis to maintain the marketing and sponsorship momentum necessary for it to continue to grow. And for residents the incorporation into the event of the new and existing circulator buses will allow even greater neighborhood reach citywide. 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