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Concession Agreement with Taste Bakery MB City Hall, LLC DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 2022324 Li CONCESSION AGREEMENT BETWEEN CITY OF MIAMI BEACH AND TASTE BAKERY MB CITY HALL, LLC FOR MANAGEMENT AND OPERATION OF A FOOD & BEVERAGE CONCESSION IN THE OUTDOOR SPACE ADJACENT TO 773 17th Street THIS AGREEMENT made the 1st day of March , 2023, between the CITY OF MIAMI BEACH, a municipal corporation of the State of Florida (hereinafter called "City"), having its principal address at 1700 Convention Center Drive, Miami Beach, Florida, 33139, and TASTE BAKERY MB CITY HALL, LLC, a Florida limited liability company, having its principal place of business at 773 17th Street, Miami Beach, Florida, 33139 (hereinafter called "Concessionaire"). The City hereby grants to the Concessionaire, and the Concessionaire hereby accepts from the City, the rights to maintain, manage, and operate a food and beverage concession within the Concession Area (as hereinafter defined), in accordance with the purpose(s) and for the term(s) stated herein, and subject to all the terms and conditions herein contained. SECTION 1. TERM. 1.1 This Agreement shall commence on the 1st day of March 2023 (the "Commencement Date"), and terminate on the 28th day of February 2028 ("Term"). For purposes of this Agreement, a "Contract Year" shall be defined as that certain period commencing on the 1st day of January, and ending on the 31 st day of December. Provided Concessionaire is in good standing and free from default(s) under Section 13 hereof, and upon written notice from Concessionaire, which notice shall be submitted to the City Manager no earlier than one hundred eighty (180) days, but in any case no later than one hundred twenty (120) days prior to the expiration of the initial Term, this Agreement may be extended for one (1), four (4) year and 364 days renewal term. Any extension, if approved, shall be memorialized in writing and signed by the parties hereto (with the City hereby designating the City Manager as the individual authorized to execute such extensions on its behalf). In the event that the City Manager determines, in his/her sole discretion, not to extend or renew this Agreement (upon expiration of the initial term or of the first renewal term), the City Manager shall notify Concessionaire of same in writing, which notice shall be provided to Concessionaire within thirty (30) business days of the City Manager's receipt of Concessionaire's written notice. 2 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 It is the intent of the parties hereto that, unless otherwise terminated pursuant to the provisions of this Agreement, the Term of this Agreement is intended to run concurrent with the term, including any extensions thereof, of the Lease.Agreement, as referenced on Page 1 of this Agreement. The City shall have the right to terminate this Agreement, without cause and for convenience, and without any liability to the City, upon providing thirty (30) days written notice to Concessionaire. If,at any time during the Term of this Agreement,the Lease Agreement is terminated or otherwise ceases to be of any legal force and effect, for whatever reason whatsoever, then this Agreement shall automatically terminate, and shall be null and void and of no further force and effect, and the City shall have no further liability with respect to same. SECTION 2. CONCESSION AREA. The City hereby grants to Concessionaire the right, during the Term herein, to maintain, manage and operate an outdoor seating area in the following Concession Area: 2.1 Concession Area: The City and Concessionaire are parties to a Lease Agreement, dated March 1, 2023 (the "Lease Agreement") relating to 734 square feet of restaurant space located at 773 17th Street, Miami Beach, Florida 33139 (the "Leased Premises"). The concession area shall consist of approximately 507 square feet of outdoor space adjacent to and east of the Leased Premises (the "Concession Area"); which outdoor space is further delineated in "Exhibit 2.1", attached hereto and incorporated herein. Concessionaire shall have the right to place up to thirty four(34)chairs(with associated tables) and six (6) umbrellas within the Concession Area, subject to approval of a site plan by the City's Planning Department, and compliance with applicable ADA requirements. The proposed site plan is also delineated in Exhibit 2.1. No material change in the proposed site plan (or in Exhibit 2.1) shall be permitted without prior written consent of the City Manager or his/her designee, which consent (if given at all) shall be at the City Manager's (or his/her designee's) sole and reasonable judgment and discretion. 2.2 Concessionaire hereby agrees and acknowledges that the Concession Area shall be open and available to all members of the general public choosing to enjoy Concessionaire's food and beverage services. 3 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 SECTION 3. USE(S). 3.1 The Concession Area shall be used by the Concessionaire solely as an outdoor seating area for the patrons and guests of the Leased Premises. The Concession Area shall have minimum days and hours of operation from Monday through Friday, commencing at 7:00 AM, and ending at 5:00 PM and Saturday and Sunday from 8:00 AM to 2:00 PM. Nothing herein contained shall be construed to authorize hours contrary to the laws governing such operations. Any change in the minimum days or hours of operation shall require the prior written consent of the City Manager. In no event shall the hours of operation extend earlier than 7:00 AM, or later than 11 :00 PM. Notwithstanding the preceding hours of operation, the Concession Area shall only be open when the Leased Premises are open for business (and, conversely, shall be closed when.the Leased Premises is closed). 3.2 Concessionaire and the tenant of the Leased Premises shall at all times throughout the Term of this Agreement be one and the same and cannot exist independently of each other. Concessionaire acknowledges and agrees that its use of the Concession Area shall be, and remain at all times throughout the Term, an ancillary use to the Leased Premises. The number of seating in the Concession Area shall be included in the overall seating count of the Leased Premises. There shall be no bar counter of any kind as part of the Concession Area and all food served shall be prepared within the interior kitchen of the Leased Premises. There shall be no alcoholic beverages permitted on the Concession Area. All tables, chairs, and umbrellas will be removed and stored each night at close of business. Any exception to this requirement shall be at the sole and absolute discretion of the City Manager or his/her designee. Concessionaire shall further maintain the Concession Area and abide by the conditions set forth in "Exhibit 3.2" (the "Additional Requirements"), attached hereto and incorporated herein. 3.2.1. Removal of Concessionaire's Property during Emergency Situations. The City Manager or his/her designee may direct or require the Concessionaire to immediately remove, relocate and/or store all or part of the Concession Area Improvements or any of Concessionaire's equipment located at the Park ("Concessionaire's Property") for public safety considerations in emergency situations, including, without limitation, a threatened tropical storm or hurricane. Upon written and/or verbal notification by the City Manager of a tropical storm/hurricane warning or alert, or other major weather event that may adversely impact the City, or upon the designation by the United States National Weather Service or National Hurricane Center of a tropical storm/hurricane warning or alert, whichever occurs first, the Concessionaire shall, within no more than two hours of same, remove and store all of Concessionaire's Property to secure Concessionaire's Property 4 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 in response to the threatened storm or other emergency, and shall take all other measures which may be necessary for the protection of the public with respect thereto. The notification by the City Manager of a hurricane or other major weather event,or the issuance of a hurricane warning, shall constitute a public emergency situation. The failure of the City to direct the Concessionaire to remove or safety store Concessionaire's Property shall not relieve the Concessionaire of its obligation to remove and store Concessionaire's Property in response to a threatened storm event as outlined herein. Should Concessionaire fail to remove Concessionaire's Property within said two (2) hour period, or in the event the City Manager or his/her designee determines, at his/her sole discretion, that Concessionaire's removal, storage and other efforts are otherwise not satisfactory, Concessionaire shall thereafter be assessed a fee of$50.00 per hour, until such time as all of Concessionaire's Property have been removed to the City Manager's satisfaction. In addition, the City Manager, without any obligation to do so, may immediately proceed to remove, relocate, and/or store the Concessionaire's Property that has otherwise not been removed by the Concessionaire, at the Concessionaire's sole cost and expense, with payment to the City for all such costs due within thirty (30) days of City's invoice to Concessionaire. Concessionaire shall be solely responsible for any damage to City property or other property resulting from Concessionaire's failure to remove and store Concessionaire's property, or otherwise implement appropriate measures in response to a threatened storm or hurricane. Concessionaire's failure to comply with this section shall constitute a default under this Agreement. The remedies identified herein for Concessionaire's failure to comply with this section are cumulative, and in addition to, all remedies that may be available to the City at law and in equity. 3.3 Concessionaire hereby warrants and represents to City that Concessionaire is the owner of the restaurant at the Leased Premises and shall, throughout the Term of the Lease Agreement, remain as the owner of said restaurant, unless any change in ownership is approved by the City Manager, in writing, prior to such change taking place. Change of ownership for purposes hereof shall include, without limitation, a sale, exchange, assignment, transfer or other disposition by tenant of all or a portion of tenant's interest in the restaurant, whether by operation of law or otherwise. 3.4 Concessionaire agrees not to place any speakers,or any other device used to amplify sound, in or around the Concession Area. Concessionaire further agrees to not attach any televisions, speakers, or any other device used to amplify sound, to the exterior of the Leased Premises. Furthermore, Concessionaire shall in no manner use the Concession Area, or 5 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Concessionaire's restaurant at the Leased Premises, as an outdoor entertainment or open air entertainment establishment, and hereby acknowledges that such uses are prohibited (whether as main or accessory uses). 3.5 It is understood and agreed that the Concession Area shall be used by the Concessionaire during the term of this Agreement only for the uses contemplated herein, and for no other purpose or use whatsoever. Concessionaire will not make or permit any use of the Concession Area that, directly or indirectly, is forbidden by public law, ordinance or government regulation, or that may be dangerous to life, limb or property. Concessionaire may not commit waste on the Concession Area, use the Concession Area for any illegal purpose, or commit a nuisance on the Concession Area. In the event that the Concessionaire uses the Concession Area for any purpose not expressly permitted herein, then the City may declare this Agreement in default pursuant to Section 13, or without notice to Concessionaire, restrain such improper use by injunction or other legal action. 3.6 Notwithstanding anything to the contrary contained herein, in the event of a breach by Concessionaire of any conditions in this Section 3, the City Manager, in his/her sole determination and judgment, shall have the right to automatically terminate this Agreement,without any liability to the City; said termination effective upon three (3) days written notice to Concessionaire. By executing this Agreement, Concessionaire hereby agrees to this condition, and further voluntarily and knowingly waives and releases any and all rights now or hereinafter conferred upon Concessionaire pursuant to Florida Statutes including, without limitation, the procedures set forth in Chapter 83, Florida Statutes' for removal in nonresidential tenancies; the Miami-Dade; and the Miami Beach Code (respectively); to the extent this and applicable law(s) would have the effect of limiting or modifying the City's rights to terminate this Agreement pursuant to this Subsection. 3.7 Concessionaire shall obtain, at its sole expense and responsibility, any business tax receipts required by the City for the proposed use(s) contemplated herein. SECTION 4. CONCESSION FEES. 4.1 Intentionally Omitted 4.2 Intentionally Omitted 4.3 Interest for Late Payment. Any payment which Concessionaire is required to make to the City which is not paid on or before the respective date provided for in this Agreement shall be subject to a late charge of Fifty and 00/100 ($50.00), plus interest 6 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 at the rate of eighteen (18%) percent per annum, or the maximum amount allowable under Florida law, whichever is lesser, from the due date of payment until such time as payment is actually received by the City. 4.4 Sales and Use Tax. It is also understood that the required Florida State Sales and Use Tax shall be added to Concessionaire's payments and forwarded to the City as part of said payments. It is the City's intent that it is to receive all payments due from Concessionaire as net of such Florida State Sales and Use Tax. SECTION 5. Intentionally Omitted SECTION 6. Intentionally Omitted SECTION 7. TAXES, ASSESSMENTS, AND UTILITIES. Concessionaire agrees and shall pay, before delinquency, all taxes and assessments of any kind (including, without limitation, ad valorem taxes, if assessed, and/or Resort Taxes) levied or assessed upon Concessionaire and/or the Concession Area including, without limitation, any such taxes and/or assessments that may be levied and/or assessed against Concessionaire and/or the Concession Area by reason of this Agreement, or by reason of the business or other operations and/or activities of Concessionaire upon or in connection with the Concession Area. Concessionaire will have the right, at its own expense, to contest the amount or validity, in whole or in part, of any tax and/or assessment by appropriate proceedings, which Concessionaire shall conduct diligently and continuously, in good faith. Concessionaire may refrain from paying a tax to the extent it is contesting the imposition of same in a manner that is in accordance with law; provided, however, if, as a result of such contest, additional delinquency charges become due, Concessionaire shall be responsible for such delinquency charges, in addition to payment of the contested tax (if so ordered). Concessionaire shall be solely responsible for and shall promptly pay when due all charges for utility service(s) provided to the Concession Area (including all hook-up fees and impact fees) for gas, electricity, water, sewer, cable, telephone, trash collection, etc., if applicable. In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Concessionaire to pay for such utility services when due, the City may elect to pay same and Concessionaire shall promptly reimburse the City upon demand. In no event shall the City be liable, whether to Concessionaire or to third parties, for an interruption or failure in the supply of any utilities services to the Concession Area. SECTION 8. EMPLOYEES AND INDEPENDENT CONTRACTORS. 8.1 Concessionaire shall select, train, employ(or otherwise hire or retain) such DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 number of employees and/or independent contractors as is necessary and appropriate for Concessionaire to satisfy its responsibilities hereunder, and as necessary to maintain the same levels of service as exist in similar first class concession facilities and operations. Concessionaire's employees and/or independent contractors shall be employees and/or independent contractors of Concessionaire and not of the City, and Concessionaire shall be solely responsible for their supervision and daily direction and control. Concessionaire shall be solely responsible for, and have the sole authority to hire, terminate and discipline any and all personnel and/or contractors employed or retained by Concessionaire. 8.2 All employees and/or independent contractors shall observe all the graces of personal grooming. Concessionaire shall hire people to work in its operation who are neat, clean, well groomed, and comport themselves in a professional and courteous manner. Concessionaire and any persons hired and/or retained by Concessionaire shall never have been convicted of a felony. Concessionaire shall have an experienced manager or managers overseeing the concession operations at all times. SECTION 9. Intentionally Omitted SECTION 10. IMPROVEMENTS, MAINTENANCE, REPAIR and OPERATION. Concessionaire accepts the use of the Concession Area in its "AS IS" "WHERE IS" condition. Concessionaire assumes sole responsibility and expense for maintenance of the Concession Area (including all furniture, fixtures, equipment and any other improvements thereon). This shall include,without limitation, daily(i.e. 365 days)removal of litter, garbage and debris. Concessionaire shall also be responsible for all garbage disposal generated by its operations. 10.1 Improvements. 10.1.1 Any improvements to the Concession Area shall be at Concessionaire's sole expense and responsibility; provided, however, that any plans for such improvements shall be submitted to the City Manager or his/her designee for prior written approval. Upon termination and/or expiration of this Agreement, all personal property and non-permanent trade fixtures may be removed by Concessionaire without causing damage to the Concession Area. All permanent (fixed) improvements to the Concession Area shall remain the property of the City upon termination and/or expiration of this Agreement, except as provided in Subsection 10.1.2. Concessionaire will permit no liens to attach to the Concession Area arising from, connected with, or related to, the design, construction, and installation of any improvements. 8 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Construction of any approved improvements shall be diligently prosecuted to completion and accomplished through the use of licensed, reputable contractors who are acceptable to the City Manager or his/her designee. In addition to obtaining the prior approval of the City Manager or his/her designee (acting on behalf of the City, in a proprietary capacity), Concessionaire shall also be solely responsible for obtaining, at its sole cost and expense, any and all permits, licenses, and/or regulatory approvals; such regulatory approvals which may include, without limitation, land use board and/or the approvals of other required regulatory agencies having jurisdiction) required for the construction of improvements. 10.1.2 Notwithstanding Subsection 10.1.1 hereof, upon termination and/or expiration of this Agreement, Concessionaire shall immediately remove any permanent improvements made to the Concession Area during the Term, at Concessionaire's sole expense and responsibility. In such event, Concessionaire shall also restore the Concession Area to its original condition prior to the improvements being made, reasonable wear and tear excepted. 10.1.3 The above requirements for submission of plans and the use of specific contractors shall not apply to improvements (which term, for purposes of this Subsection 10.1.3 only, shall also include improvements necessary for Concessionaire's ongoing maintenance and repair of the Concession Area) which do not exceed Five Hundred ($500.00)Dollars; provided that the work is not structural, and provided further that it is permitted by applicable law. 10.2 Garbage Receptacles. With respect to litter, garbage and debris removal, Concessionaire shall provide, at its sole expense, a sufficient number of trash receptacles for its own use and for the use of its patrons. Determination of the "number" of receptacles shall at all times be within the City Manager or his/her designee's sole discretion. Disposal of the contents of said receptacles(and removal of litter, garbage and debris within the Concession Area), shall be done on a daily (i.e. 365 days) basis. Any costs for removal of the contents of said trash receptacles by the City, because of the Concessionaire's failure to do so, will be assessed to, and become the responsibility of, the Concessionaire. The dumping or disposal of any refuse, discards, trash or garbage, generated by, or as a result of Concessionaire's operations, into any of the City's trash dumpster shall be prohibited. 10.3 Maintenance/Repair. Concessionaire shall maintain, at its sole expense and responsibility, all furniture, fixtures, and equipment (FFE) and any other improvements (whether permanent or not) required to operate the concession. In the event any FFE and/or other improvement(s) is lost, stolen, or damaged, it shall be replaced or repaired promptly, at the sole expense of 9 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Concessionaire. 10.3.1 All damage or injury of any kind to the Concession Area, and/or to any improvements and/or FFE thereon, except damage caused by the willful misconduct or gross negligence of the City, shall be the sole obligation of Concessionaire, and shall be repaired, restored and/or replaced promptly by Concessionaire, at its sole expense, to the satisfaction of the City Manager or his/her designee. 10.3.2 All of the aforesaid repairs, restoration and replacement shall be in quality and class equal to or better than the original work(or FFE, as the case may be) and shall be done in good and workmanlike manner. 10.3.3 If Concessionaire fails to make any repairs, restoration and/or replacement, the same may be made by the City, at the expense of Concessionaire, and all sums spent and expenses incurred by the City shall be collectable by the City and shall be paid by Concessionaire within ten (10) days after receipt of a bill or statement thereof. Notwithstanding that the City may elect to make such repairs, restoration, and/or replacement, the City shall have no obligation and/or affirmative duty to do.so. 10.3.4 It shall be Concessionaire's sole obligation to ensure that any renovations, repairs and/or improvements made by Concessionaire to the Concession Area comply with all applicable permitting, building codes and life safety codes of governmental authorities having jurisdiction. 10.4 No Dangerous Materials. Concessionaire agrees not to use or permit in the Concession Area the storage and/or use of gasoline, fuel oils, diesel, illuminating oils, oil lamps, combustible powered electricity producing generators, turpentine, benzene, naphtha, propane, natural gas, or other similar substances, combustible materials, or explosives of any kind, or any substance or thing prohibited in the standard policies of fire insurance companies in the State of Florida. Any such substances or materials found within the Concession Area shall be immediately removed. In consideration of a separate and specific consideration of Ten ($10.00) Dollars and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Concessionaire shall indemnify and hold the City harmless from any loss, damage, cost, or expense of the City, including,without limitation, reasonable attorney's fees, incurred as a result of, arising from, or connected with the placement by Concessionaire of any "hazardous substance" or "petroleum products" on, under, in or upon the Concession Area as those terms are defined by applicable Federal and State statutes, or any environmental rules and environmental regulations promulgated thereunder. The provisions of this subsection 10.4 shall survive the termination or earlier expiration of this Agreement. 10 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 10.5 Security. Concessionaire shall be responsible for and provide such reasonable security measures as may be required to protect the Concession Area and any improvements and FFE thereon. Under no circumstances shall the City be responsible for any stolen or damaged FFE; damage to or loss of any improvements; or any stolen, lost, or damaged personal property of Concessionaire's employees, contractors, patrons, guests, invitees, and/or any other third parties. 10.6 Inspection. Concessionaire agrees that the Concession Area (and operations thereon) may be inspected at any time during hours of operation by the City Manager or his/her designee, or by any other municipal, County or State officer, or other agency having responsibility and/or jurisdiction for inspection of such operations. Concessionaire hereby waives all claims against the City for compensation for loss or damage sustained by reason of any interference with the concession operations,whether by the City or by any public agency or official, in enforcing their respective duties, or enforcing compliance with any applicable laws, or ordinances, or regulations. SECTION 11. CONCESSIONAIRE'S INSURANCE REQUIREMENTS. 11.1. Concessionaire shall maintain throughout the term, at its sole cost and expense, the following insurance requirements: 11.1.1 Worker's Compensation Insurance for all employees of the vendor as required by Florida Statute 440, and Employer Liability Insurance for bodily injury or disease. Should the Concessionaire be exempt from this Statute, the Concessionaire and each employee shall hold the City harmless from any injury incurred during performance of the Agreement. The exempt Concessionaire shall also submit (i) a written statement detailing the number of employees and that they are not required to carry Workers' Compensation insurance and do not anticipate hiring any additional employees during the term of this Agreement or(ii) a copy of a Certificate of Exemption. 11.1.2 Commercial General Liability Insurance on an occurrence basis, including products and completed operations, property damage, bodily injury and personal &advertising injury with limits no less than $1,000,000 per occurrence, and $2,000,000 general aggregate. 11.1.3 All-Risk property and casualty insurance, written at a minimum of eighty (80%) percent of replacement cost value and with replacement cost endorsement, covering all of Concessionaire's personal property in the Concession Area (including, without limitation, inventory, trade fixtures, floor coverings, furniture, and other property removable by Concessionaire under the provisions of this Agreement). 11 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 11.1.4 Business interruption insurance, sufficient to insure Concessionaire for no less than one(1)full year of loss of business, with the Landlord named thereon as loss payee to the extent permitted by applicable law. 11.2 Additional Insured - City of Miami Beach must be included by endorsement as an additional insured with respect to all liability policies (except Professional Liability and Workers' Compensation) arising out of work or operations performed on behalf of the Concessionaire including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired or borrowed in the form of an endorsement to the Concessionaire's insurance. 11.3 Notice of Cancellation - Each insurance policy required above shall provide that coverage shall not be cancelled, except with notice to the City of Miami Beach do EXIGIS Insurance Compliance Services. 11.4 Waiver of Subrogation—Concessionaire agrees to obtain any endorsement that may be necessary to affect the waiver of subrogation on the coverages required. However, this provision applies regardless of whether the City has received a waiver of subrogation endorsement from the insurer. 11.5 Acceptability of Insurers — Insurance must be placed with insurers with a current A.M. Best rating of A:VII or higher. If not rated, exceptions may be made for members of the Florida Insurance Funds (i.e. FWCIGA, FAJUA). Carriers may also be considered if they are licensed and authorized to do insurance business in the State of Florida. 11.6 Verification of Coverage — Contractor shall furnish the City with original certificates and amendatory endorsements, or copies of the applicable insurance language, effecting coverage required by this contract. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH c/o EXIGIS Insurance Compliance Services P.O. Box 4668— ECM #35050 New York, NY 10163-4668 Kindly submit all certificates of insurance, endorsements, exemption letters to our servicing agent, EXIGIS, at: Certificates-miamibeach@riskworks.com 12 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 11.7 Special Risks or Circumstances - The City of Miami Beach reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 11.8 Compliance with the foregoing requirements shall not relieve the vendor of his liability and obligation under this section or under any other section of this agreement. SECTION 12. INDEMNITY. 12.1 In consideration of a separate and specific consideration of Ten ($10.00) Dollars and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Concessionaire shall indemnify, hold harmless and defend the City, its officers, employees, contractors, agents or servants from and against any claim, demand or cause of action of whatsoever kind or nature arising out of error, omission, or negligent act of Concessionaire, its officers, employees, contractors, agents or servants in the performance of services under this Agreement. 12.2 In addition, and in consideration of a separate and specific consideration of Ten ($10.00) Dollars and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Concessionaire shall indemnify, hold harmless and defend the City, its officers, employees, contractors, agents or servants from and against any claim, demand or cause of action of whatever kind or nature arising out of any misconduct of Concessionaire, its officers, employees, contractors, sub concessionaire(s), agents or servants not included in Subsection 12.1 herein and for which the City, its officers, employees, contractors, sub concessionaire(s), agents or servants are alleged to be liable. 12.3 Subsections 12.1 and 12.2 shall survive the termination or expiration of this Agreement. Subsections 12.1 and 12.2 shall not apply, however, to any such liability, that arises as a result of the willful misconduct or gross negligence of the City, its officers, employees, contractors, agents or servants. 12.4 Intentionally Omitted 12.5 Force Majeure. Whenever a period of time is herein prescribed for the taking of any action by the City or Concessionaire (as applicable), the City or Concessionaire (as applicable), shall not be liable or responsible for, and there shall be excluded from the computation of such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, or governmental laws, regulations, or restrictions in the nature of a prohibition or moratorium, or any bona fide delay beyond the reasonable control of City or Concessionaire (as applicable). The foregoing shall not apply to any payments of money due under this Agreement. 13 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 12.6 Waiver of Loss from Hazards. Concessionaire hereby expressly waives all claims against the City for loss or damage sustained by the Concessionaire resulting from an event of Force Majeure (as defined herein), and the Concessionaire hereby expressly waives all rights, claims, and demands against the City and forever releases and discharges the City from all demands, claims, actions and causes of action arising from any of the aforesaid causes. SECTION 13. DEFAULT AND TERMINATION. Subsections 13.1 through 13.4 shall constitute events of default under this Agreement. An event of default by Concessionaire shall entitle the City to exercise any and all remedies described as the City's remedies under this Agreement, including but not limited to those set forth in Subsection 13.5. An event of default by the City shall entitle Concessionaire to exercise any and all remedies described as Concessionaire's remedies under this Agreement, including but not limited to those set forth in Subsection 13.6. 13.1 Bankruptcy. If either the City or Concessionaire shall be adjudged bankrupt or insolvent, or if any receiver or trustee of all or any part of the business property of either party shall be appointed, or if any receiver of all or any part of the business property shall be appointed and shall not be discharged within sixty (60) days after appointment, or if either party shall make an assignment of its property for the benefit of creditors, or shall file a voluntary petition in bankruptcy, or insolvency, or shall apply for reorganization or arrangement with its creditors under the bankruptcy or insolvency laws now in force or hereinafter enacted, Federal, State, or otherwise, or if such petitions shall be filed against either party and shall not be dismissed within sixty (60) days after such filing, then the other party may immediately, or at any time thereafter, and without further demand or notice, terminate this Agreement without being prejudiced as to any remedies which may be available to it for breach of contract. 13.2 Default in Payment. If any payment and accumulated penalties are not received within fifteen (15) days after the payment due date, and such failure continues three (3) days after written notice thereof, then the City may, without further demand or notice, terminate this Agreement without being prejudiced as to any remedies which may be available to it for breach of contract. 13.3 Non-Monetary Default. In the event that Concessionaire or the City fails to perform or observe any of the covenants, terms or provisions under this Agreement, and such failure continues thirty (30) days after written notice thereof from the other party hereto, such non-defaulting party may immediately or at any time thereafter, and without further demand or notice, terminate this Agreement. In the event that a default is not reasonably susceptible to being cured within such period, the defaulting party shall not be considered in default if it shall, 14 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 within such period, commence with due diligence and dispatch to cure such default and thereafter completes with dispatch and due diligence the curing of such default, but in no event shall such extended cure period exceed ninety (90) days from the date of written notice thereof. In the event Concessionaire cures any default pursuant to this subsection, it shall promptly provide the City with written notice of same. 13.4 Default Under Lease Agreement. In the event that Concessionaire is in default under the Lease Agreement (as referenced in Page 1 of this Agreement) then the City may, without further demand or notice, terminate this Agreement without being prejudiced as to any remedies which may be available to it for breach'of contract. 13.5 City's Remedies for Concessionaire's Default. If any of the events of default, as set forth in this Section, shall occur, the City may, after notice (if required) and the expiration of cure periods, as provided above, at its sole option and discretion, institute such proceedings as in its opinion are necessary to cure such default(s) and to compensate the City for damages resulting from such default(s), including but not limited to the right to give to Concessionaire a notice of termination of this Agreement. If such notice, is given, the Term of this Agreement shall terminate upon the date specified in such notice from the City to Concessionaire. On the date so specified, Concessionaire shall then quit and surrender the Concession Area to the City pursuant to the provisions of Subsection 13.8. Upon the termination of this Agreement by the City, all rights and interest of Concessionaire in and to the Concession Area and to this Agreement, and every part thereof, shall cease and terminate and the City may, in addition to any other rights and remedies it may have, retain all sums paid to it by Concessionaire under this Agreement. In addition to the rights set forth above, the City shall have the rights to pursue any and all of the following: a. The right to injunction or other similar relief available to it under Florida law against Concessionaire; and/or b. the right to maintain any and all actions at law or suits in equity or other proper proceedings to obtain damages resulting from Concessionaire's default. 13.6 Concessionaire's Remedies for City's Default. If an event of default, as set forth in this Section, by the City shall occur, Concessionaire may, after the expiration of the cure period, terminate this Agreement upon written notice to the City. Said termination shall become effective upon receipt of the written notice of termination by the City. On the date specified in the notice, Concessionaire shall quit and surrender the Concession Area to the City pursuant to the provisions of Subsection 13.8. 15 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 13.7 Termination for Convenience. 13.7.1. Notwithstanding any other provision of this Section 13, this Agreement may be terminated, in whole or in part, by the City, for convenience and without cause, upon the furnishing of thirty (30) days prior written notice to Concessionaire. 13.7.2. In the event of termination by the City pursuant to this subsection, Concessionaire herein acknowledges and agrees that it shall not have any claim, demand, or cause of action of whatsoever kind or nature, against the City, its agents, servants and employees (including, but not limited to, claims for any start-up costs, interference in business or damages for interruption of services, or interference in its concession operations). In no event shall the City be liable to Concessionaire for any indirect, incidental, special, lost profits or consequential damages. 13.8 Surrender of Concession Area. At the expiration of this Agreement, or earlier termination in accordance with the terms of this Agreement, Concessionaire shall surrender the Concession Area in the same condition as the Concession Area was prior to the Commencement Date of this Agreement, reasonable wear and tear excepted. Concessionaire shall remove all its personal property, upon forty- eight (48) hours written notice from the City Manager or his/her designee unless a longer time period is agreed to by the City. Concessionaire's obligation to observe or perform this covenant shall survive the expiration or other termination of this Agreement. Continued occupancy of the Concession Area after termination of the Agreement shall constitute trespass by the Concessionaire, and may be prosecuted .as such. In addition, the Concessionaire shall pay to the City One Thousand ($1,000.00) Dollars per day as liquidated damages for such trespass and holding over. SECTION 14. Intentionally Omitted SECTION 15. Intentionally Omitted SECTION 16. SPECIAL EVENTS / SPONSORSHIPS. 16.1 City Special Events. In the event that the City, at its sole discretion, deems that it would be in the best interest of the City, the City reserves the right to displace the Concessionaire for City produced and/or sponsored special events and/or City produced and/or sponsored productions. Additionally, the aforestated events may also require additional time for load-in and load-out of the event. In such cases, the City may request that Concessionaire cease and desist operations during the term of, and in the area of, the special event and/or production, and Concessionaire shall cease and desist during such time. To the extent that Concessionaire is displaced, and/or required to cease and desist operations, City shall provide, calculated on a per diem basis for 16 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 the period of time the Concession Area is non-operational, a credit against Concessionaire's Concession Fee, prorated on a per diem basis, to be calculated by dividing the monthly Concession Fee by 30 and multiplying said figure by the number of days the Concessionaire was displaced.. If the Concessionaire is not required to close, or the City Manager or his/her designee determines that Concessionaire may remain open in such a manner as prescribed by the City, that will not interfere with the special event and/or production, Concessionaire shall use its best efforts, in either case, in cooperating with the City. If Concessionaire is allowed to remain open during special events and/or productions, Concessionaire may be allowed to have in operation its normal daily complement of equipment and staff. "Normal" shall be defined as equipment and staff that the Concessionaire customarily has available to service its patrons within the Concession Area on a normal business day (during its hours of operation). 16.2 Sponsorships. The City reserves unto itself all present and future rights to negotiate all forms of endorsement and/or sponsorship agreements based on the marketing value of any City trademark, property, brand, logo and/or reputation. Any and all benefits derived from an endorsement and/or sponsorship agreement based on the marketing value of a City trademark, property, brand, logo and/or reputation, shall belong exclusively to the City. Concessionaire shall be specifically prohibited from entering into, or otherwise creating any, sponsorships and/or endorsements with third parties which are based solely or in any part on the marketing value of a City trademark, property, brand, logo and/or reputation. SECTION 17. NO IMPROPER USE. Concessionaire will not use, nor suffer or permit any person to use in any manner whatsoever, the Concession Area for any improper, immoral or offensive purpose, or for any purpose in violation of any Federal, State, County, or municipal ordinance, rule, order or regulation, or of any governmental rule or regulation now in effect or hereafter enacted or adopted. Concessionaire will protect, indemnify, and forever save and keep harmless the City, its officers, employees, contractors, agents or servants, from and against damage, penalty, fine, judgment, expense or charge suffered, imposed, assessed or incurred for any violation, or breach of any law, ordinance, rule, order or regulation occasioned by any act, neglect or omission of Concessionaire, or any of its officers, employees, contractors, agents or servants. In the event of any violation by Concessionaire,or if the City shall deem any conduct on the part of Concessionaire to be objectionable or improper, the City Manager or his/her designee shall have the right to suspend the concession operations should the Concessionaire fail to correct any such violation, conduct, or practice to the satisfaction of the City Manager or his designee within twenty-four (24) hours after receiving written or verbal notice of the nature and extent of such violation, conduct, or practice; such suspension to continue until the violation is cured. Concessionaire further agrees not to commence operations during the 17 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 suspension until the violation has been corrected to the satisfaction of the ti City Manager or his/her designee. SECTION 18. Intentionally Omitted SECTION 19. NOTICES. All notices from the City to Concessionaire shall be deemed duly served upon receipt, if mailed by registered or certified mail with a return receipt to Concessionaire at the following addresses: Aditya Thakore,Manager Taste Bakery MB City Hall, LLC 773 17th Street Miami Beach, Florida 33139 All notices from Concessionaire to the City shall be deemed duly served upon receipt, if mailed by registered or certified mail return receipt requested to the City of Miami Beach at the following addresses: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 With copy to: Asset Manager Facilities and Fleet Management Department City of Miami Beach 1833 Bay Road, Second Floor Miami Beach, FL 33139 Concessionaire and the City may change the above mailing addresses at any time upon giving the other party written notification. All notices under this Agreement must be in writing. SECTION 20. LAWS. 20.1 Compliance. Concessionaire shall comply with all applicable City, County, State, and Federal ordinances,statutes, rules and regulations(including but not limited to all applicable environmental City, County, State, and Federal ordinances, statutes, rules and regulations, as same may be amended from time to time. 20.2 No Discrimination. Concessionaire hereby agrees hereby agrees to comply with City of Miami Beach Human Rights Ordinance, as codified in Chapter 62 of the City Code, as may be amended from time to time, prohibiting discrimination in employment (including independent contractors), housing, public accommodations, public services, and in connection with its membership or 18 DocuSign Envelope ID:FOE45084-F536-46F1-900A-7DAF31CCDDB7 policies because of actual or perceived race, color, national origin, religion, sex, intersexuality, sexual orientation, gender identity, familial and marital status,age, ancestry, height,weight, hair texture and/or hair style, domestic partner status, labor organization membership, familial situation, political affiliation, or disability. SECTION 21. PROHIBITIONS REGARDING SALE OR USE OF EXPANDED POLYSTYRENE FOOD SERVICE ARTICLES OR PLASTIC STRAWS. 21.1 Pursuant to Section 82-7 of the City Code, as may be amended from time to time, effective August 2, 2014, the City has prohibited the use of expanded polystyrene food service articles by City Contractors, in connection with any City contract, lease, concession agreement or Special event permit. Additionally, pursuant to Section 82-385 of the City Code, as may be amended from time to time, no polystyrene food service articles will be allowed in the right-of-way, and no polystyrene food service articles can be provided to sidewalk café patrons. 21.2 "Expanded polystyrene" is a petroleum byproduct commonly known as Styrofoam. Expanded polystyrene is more particularly defined as blown polystyrene and expanded and extruded foams that are thermoplastic petrochemical materials utilizing a styrene monomer and processed by any number of techniques including, but not limited to,fusion of polymer spheres (expandable bead foam), injection molding, foam molding, and extrusion- blown molding (extruded foam polystyrene). "Expanded polystyrene food service articles" means plates, bowls, cups, containers, lids,trays, coolers, ice chests, and all similar articles that consist of expanded polystyrene. 21.3 Concessionaire agrees not to sell, use, provide food in, or offer the use of expanded polystyrene food service articles at the Concession Area or in connection with this Agreement. Concessionaire shall ensure that all vendors operating in the Concession Area abide by the restrictions contained in this Section 21. A violation of this section shall be deemed a default under the terms of this Agreement. This subsection shall not apply to expanded polystyrene food service articles used for prepackaged food that have been filled and sealed prior to receipt by the Concessionaire or its vendors. 21.4 Additionally, Concessionaire agrees to comply (and ensure compliance by its vendors) with Section 46-92 (c) of the City Code, which states that it is unlawful for any person to carry any expanded polystyrene product onto any beach or into any park within the City or for any business to provide plastic straws with the service or delivery of any beverage to patrons on the beach. SECTION 22. NON-ALCOHOLIC PRODUCT EXCLUSIVITY. The City reserves the right to execute exclusive product agreements and/or 19 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 sponsorship agreements with third parties from time to time. Concessionaire agrees to be subject to the terms and conditions of those agreements, even if executed after the date of this Agreement. The City is in the process of negotiating exclusive pouring rights agreements with Pepsi, as the exclusive non-alcoholic beverage supplier (excluding energy drinks), and Red Bull for the energy drink category. Upon execution, Concessionaire will be notified and provided with the purchasing agent for the exclusive non-alcoholic beverage supplier. Upon receipt of written notification from. the City, which could be pursuant to an e-mail, Concessionaire will not be permitted to purchase, sample or sell competitive products. Additionally, Concessionaire will be required to remove any equipment with the logo or name of any competitor of these sponsors. SECTION 23. INSPECTOR GENERAL AUDIT RIGHTS. 23.1 Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City has established the Office of the Inspector General which may, on a random basis, perform reviews, audits, inspections and investigations on all City contracts, throughout the duration of said contracts. This random audit is separate and distinct from any other audit performed by or on behalf of the City. 23.2 The Office of the Inspector General is authorized to investigate City affairs and empowered to review past, present and proposed City programs, accounts, records, contracts and transactions. In addition, the Inspector General has the power to subpoena witnesses, administer oaths, require the production of witnesses and monitor City projects and programs. Monitoring of an existing City project or program may include a report concerning whether the project is on time,within budget and in conformance with the contract documents and applicable law. The Inspector General shall have the power to audit, investigate, monitor, oversee, inspect and review operations, activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Concessionaire, its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. Pursuant to Section 2-378 of the City Code, the City is allocating a percentage of its overall annual contract expenditures to fund the activities and operations of the Office of Inspector General. 23.3 Upon ten (10) days written notice to the Concessionaire, the Concessionaire shall make all requested records and documents available to the Inspector General for inspection and copying. The Inspector General is empowered to retain the services of independent private sector auditors to audit, investigate, monitor, oversee, inspect and review operations activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Concessionaire its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and 20 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 to detect fraud and corruption. 23.4 The Inspector General shall have the right to inspect and copy all documents and records in the Concessionaire's possession, custody or control which in the Inspector General's sole judgment, pertain to performance of the contract, including, but not limited to original estimate files, change order estimate files, worksheets, proposals and agreements from and with successful subcontractors and suppliers, all project-related correspondence, memoranda, instructions, financial documents, construction documents, (bid/proposal) and contract documents, back- change documents, all documents and records which involve cash, trade or volume discounts, insurance proceeds, rebates, or dividends received, payroll and personnel records and supporting documentation for the aforesaid documents and records. 23.5 The Concessionaire shall make available at its office at all reasonable times the records, materials, and other evidence regarding the acquisition (bid preparation) and performance of this Agreement, for examination, audit, or reproduction, until three (3) years after final payment under this Agreement or for any longer period required by statute or by other clauses of this Agreement. In addition: i. If this Agreement is completely or partially terminated, the Concessionaire shall make available records relating to the work terminated until three (3) years after any resulting final termination settlement; and ii. The Concessionaire shall make available records relating to appeals or to litigation or the settlement of claims arising under or relating to this Agreement until such appeals, litigation, or claims are finally resolved. 23.6 The provisions in this section shall apply to the Concessionaire, its officers, agents, employees, subcontractors and suppliers. The Concessionaire shall incorporate the provisions in this section in all subcontracts and all other agreements executed by the Concessionaire in connection with the performance of this Agreement. 23.7 Nothing in this section shall impair any independent right to the City to conduct audits or investigative activities. The provisions of this section are neither intended nor shall they be construed to impose any liability on the City by the Concessionaire or third parties. SECTION 24. CONCESSIONAIRE'S COMPLIANCE WITH FLORIDA'S PUBLIC RECORDS LAW. 24.1 Concessionaire shall comply with Florida Public Records law under Chapter 119, Florida Statutes, as may be amended from time to time. 21 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 24.2 The term "public records" shall have the meaning set forth in Section 119.011(12), which means all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. 24.3 Pursuant to Section 119.0701 of the Florida Statutes, if the Concessionaire meets the definition of "Contractor" as defined in Section 119.0701(1)(a), the Concessionaire shall: A. Keep and maintain public records required by the City to perform the service; B. Upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes or as otherwise provided by law; C. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed, except as authorized by law, for the duration of the contract term and following completion of the Agreement if the Concessionaire does not transfer the records to the City; D. Upon completion of the Agreement, transfer, at no cost to the City, all public records in possession of the Concessionaire or keep and maintain public records required by the City to perform the service. If the Concessionaire transfers all public records to the City upon completion of the Agreement, the Concessionaire shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Concessionaire keeps and maintains public records upon completion of the Agreement, the Concessionaire shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City. 24.4 Request for Records; Noncompliance. A. A request to inspect or copy public records relating to the City's contract for services must be made directly to the City. If the City does not possess the requested records, the City shall immediately notify the Concessionaire of the request, and the Concessionaire must provide the records to the City or allow the records to be inspected or copied within a reasonable time. 22 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 B. Concessionaire's failure to comply with the City's request for records shall constitute a breach of this Agreement, and the City, at its sole discretion, may: 3 unilaterally terminate the Agreement;(2)avail itself of the remedies set forth under the Agreement; and/or(3) avail itself of any available remedies at law or in equity. C. A Concessionaire who fails to provide the public records to the City within a reasonable time may be subject to penalties under s. 119.10. 24.5 Civil Action. A. If a civil action is filed against a Concessionaire to compel production of public records relating to the City's contract fo,r services, the court shall assess and award against the Concessionaire the reasonable costs of enforcement, including reasonable attorneys' fees, if: i. The court determines that the Concessionaire unlawfully refused to comply with the public records request within a reasonable time; and ii. At least 8 business days before filing the action, the plaintiff provided written notice of the public records request, including a statement that the Concessionaire has not complied with the request, to the City and to the Concessionaire. B. A notice complies with subparagraph (A)(ii) if it is sent to the City's custodian of public records and to the Concessionaire at the Concessionaire's address listed on its contract with the City or to the Concessionaire's registered agent. Such notices must be sent by common carrier delivery service or by registered, Global Express Guaranteed, or certified mail, with postage or shipping paid by the sender and with evidence of delivery, which may be in an electronic format. C. A Concessionaire who complies with a public records request within 8 business days after the notice is sent is not liable for the reasonable costs of enforcement. 24.6 IF THE CONCESSIONAIRE HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONCESSIONAIRE'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: 23 ' DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 CITY OF MIAMI BEACH ATTENTION: RAFAEL E. GRANADO, CITY CLERK 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 E-MAIL: RAFAELGRANADO@MIAMIBEACHFL.GOV PHONE: 305-673-7411 SECTION 25. MISCELLANEOUS. 25.1 No Partnership. Nothing contained in this Agreement shall constitute or be construed to be or create a partnership or joint venture between the City and Concessionaire. 25.2 Modifications. This Agreement cannot be changed or modified except by agreement in writing executed by all parties hereto. Concessionaire acknowledges that no modification to this Agreement may be agreed to by the City unless approved by the Mayor and City Commission except where such authority has been expressly provided herein to the City Manager. 25.3 Complete Agreement. This Agreement, together with all exhibits incorporated hereto, constitutes all the understandings and agreements of whatsoever nature or kind existing between.the parties with respect to Concessionaire's operations, as contemplated herein. 25.4 Headings. The section, subsection and paragraph headings contained herein are for convenience of reference only and are not intended to define, limit, or describe the scope or intent of any provision of this Agreement. 25.5 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 25.6 Clauses. The illegality or invalidity of any term or any clause of this Agreement shall not affect the validity of the remainder of the Agreement, and the Agreement shall remain in full force and effect as if such illegal or invalid term or clause were not contained herein unless the elimination of such provision detrimentally reduces the consideration that either party is to receive under this Agreement or materially affects the continuing operation of this Agreement. 25.7 Severability. If any provision of this Agreement or any portion of such provision or the application thereof to any person or circumstance shall be held to be invalid 24 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDR7 or unenforceable, or shall become a violation of any local, State, or Federal laws, then the same as so applied shall no longer be a part of this Agreement but the remainder of the Agreement, such provisions and the application thereof to other persons or circumstances, shall not be affected thereby and this Agreement shall be so modified. 25.8 Right of Entry. The City, at the direction of the City Manager, shall at all times during hours of operation, have the right to enter into and upon any and all parts of the Concession Area for the purpose of examining the same for any reason relating to the obligations of parties to this Agreement. 25.9 Not a Lease. It is expressly understood and agreed that no part, parcel, building, structure, equipment or space is leased to Concessionaire; that this Agreement is a concession agreement and not a lease, and that Concessionaire's right to operate, manage, and maintain the concession shall continue only so long as Concessionaire complies with the undertakings, provisions, agreements, stipulations and conditions of this Agreement. Accordingly, Concessionaire hereby agrees and acknowledges that in the event of termination of this Agreement, whether due to a default by Concessionaire or otherwise, Concessionaire shall surrender and yield unto the City the Concession Area, in accordance with Subsection 13.8 hereof, and the City shall in no way be required to evict and/or otherwise remove Concessionaire from the Concession Area as if this were a tenancy under Chapter 83, Florida Statutes, nor shall Concessionaire be afforded any other rights afforded to nonresidential tenants pursuant to said Chapter (the parties having herein expressly acknowledged that this Agreement is intended to be a concession agreement and is in no way intended to be a lease). 25.10. Signaqe. Concessionaire shall provide, at its sole expense and responsibility, any required signs at its concession. All advertising, signage and postings shall be approved by the City, and shall be in accordance with all applicable Municipal, County, State and Federal laws and regulations. Any signage posted by Concessionaire shall be subject to the prior approval of the City as to size, shape and placement of same. 25.11 Conflict of interest. Concessionaire shall perform its services under this Agreement and conduct the concession operation(s) contemplated herein, in a manner so as to show no preference for other concession operations/facilities owned, operated, managed, or otherwise controlled by Concessionaire. 25 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 25.12 No Waiver. 25.12.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of the City to insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Agreement, or to exercise any option herein conferred,will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 25.12.2 A waiver of any term expressed herein shall not be implied by any • neglect of the City to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 25.12.3 The receipt of any sum paid by Concessionaire to the City after breach of any condition, covenant, term or provision herein contained shall not be deemed a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation (and not as rent), unless such breach be expressly waived in writing by the City. 25.13 No Third Party Beneficiary. Nothing in this Agreement shall confer upon any person or entity, other than the parties hereto and their respective successors and permitted assigns, any rights or remedies by reason of this Agreement. SECTION 26. LIMITATION OF LIABILITY. The City desires to enter into this Agreement placing the management and operation of the Concession Area in the hands of a private management entity only if so doing the City can place a limit on its liability for any cause of action for breach of this Agreement, so that its liability for any such breach never exceeds the sum of Ten Thousand ($10,000.00) Dollars. Concessionaire hereby expresses its willingness to enter into this Agreement with a Ten Thousand ($10,000.00) Dollar limitation on recovery for any action for breach of contract. Accordingly, and in consideration of the separate consideration of Ten Thousand ($10,000.00) Dollars, the receipt of which• is hereby acknowledged, the City shall not be liable to Concessionaire for damages to Concessionaire in an amount in excess of Ten Thousand ($10,000.00) Dollars, for any action for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. 26 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 SECTION 27. VENUE. This Agreement shall be deemed to have been made and shall be construed and interpreted in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. THE CITY AND CONCESSIONAIRE HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT THE CITY AND CONCESSIONAIRE MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE CONCESSION AREA. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 27 DocuSign Envelope ID:F0E45084F536-46F1-900A-7DAF31CCDDB7 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed,all as of the day and year first above written, Indicating their agreement FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: DocuSigned by: FOCA . arGUA.4 6 By: ^eQs^co�esi c= Rafael E. Granado, City Clerk A a T. Hudak, City Manager 3/3/2023 i 11:35 AM EST Date FOR CONCESSINAIRE: TASTE BAKERY MB CITY HALL, LLC ATTEST: i/. — By: Witness Aditya Th e,Manager i lei( /kq,ns /?;4fezt.._ Zee— Print NaMe Print Na'Ine 62_\'1A9D7,S Date APPROVED AS TO FORM c LANGUAGE &FOR EXECUTION • yAt:orney r a c 28 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 • EX: 1:1:L:.. 2.iConcession Area ,,.„.. ....---,----1 ..4 .. •!,'4..• 1, i ...,ii."4-..-,,'14....-_-'47.;ill '4-'4111)116.1/...gwAill ,. ..-.i .7-1-•-y,-, t , 0 I ki •,/' ',....;....,4,..1 I 1 ,--t-r, -," ,.,., , ),,elp...4 .....,,.., -. . .---1,„ ...,:r -.7-y„...._,:'''..',4.1" ...9.0 I',' , TRA.ri IMN, t/ 1.'f'-'* 1 ,,' 1 i I I •F.:---;./. 7", . 1..e.iip,, is•Zaapcitc, 7-1...-71,4_,'j i 1 , 1,....-..--.......-,..u.r. .1104„. ;:,12,1 , ---11,---- * 'i ! " --,-.:1,C::'::::,..1, ,e1' ...4.111 yelp. as C21 1.:k ' l'. i ' 1.1--'----1-. i .. • _ I, ro„:,., t,,,,,t„. • , .. ii : •CC 11'. 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T.N."..f..WAIS•Artf, ALI.ntorca 0/9.04 I. ."4.410.410.0 imala 01 ,d9lit.T.I1111.3 1 29 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 EXHIBIT 3.2 Additional Requirements The Concession Area shall be maintained in a clean, neat and orderly appearance at all times by the Concessionaire. The area of the sidewalk, curb and gutter immediately adjacent to the Concession Area shall be cleared of all debris during hours of operation, and again at the close of each business day, or as may otherwise be determined by the City Manager. The Concessionaire shall be responsible for cleaning the floor surface on which the outdoor seating is located at the close of each business day. In addition, the following conditions shall apply: a. Tables, chairs, umbrellas and any other outdoor cafe furniture shall be maintained in a clean, attractive, and orderly appearance, and shall be maintained and kept in good repair at all times; b. All outdoor furniture shall be of high quality, design, materials, and workmanship so as to ensure the safety and convenience of the public; c. Only the outdoor cafe furniture specifically shown on the approved site plan shall be allowed on the Concession Area; d. All tables, chairs, umbrellas, and any other outdoor furniture shall be readily removable, and shall not be physically attached, chained, or in any other manner affixed to any public structure, street furniture, signage, and/or other public fixture, or to a curb and/or public right-of-way; e. The stacking or piling up of chairs shall be prohibited on the Concession Area; f. At close of business, all tables, chairs and any other outdoor furniture shall be removed from the Concession Area and stored in a non-visible location from the public right-of-way. Any exception to this requirement shall be at the sole and absolute discretion of the City Manager and/or his/her designee. g. No storage of dishes, silverware or other similar restaurant equipment shall be allowed on the Concession Area, or on any other portion of the public right-of- way, or outside the structural confines of the building in which the restaurant is located, during non-business hours; h. There shall be no live entertainment or speakers placed on the Concession Area; i. No menu board(s) shall be permitted to be displayed on the Concession Area; j. No food preparation, food storage, refrigeration apparatus or equipment, or fire apparatus or equipment, shall be allowed on the Concession Area; k. No food displays shall be permitted on the Concession Area. No advertising signs or business identification signs shall be permitted, except that the restaurant name and/or its logo may be permitted on umbrellas but such logos and/or lettering may not exceed six inches in height; 30 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 I. Plants shall be properly maintained. Distressed plants shall be promptly replaced. Plant fertilizers which contain material that can stain the sidewalks shall not be allowed; m. The City Manager or his/her designee may cause the immediate removal, relocation and/or storage of all or part of any furniture located on the Concession Area in emergency situations or for public safety considerations. Upon written and/or verbal notification by the City Manager of a hurricane or other major weather event, or the issuance of a hurricane warning by Miami- Dade County, whichever occurs first, the Concessionaire shall, within no more than four hours of same, remove and place indoors all tables, chairs and any other outdoor furniture located on the Concession Area. The notification by the City Manager of a hurricane or other major weather event, or the issuance of a hurricane warning, shall constitute a public emergency situation as referenced in this division. The City Manager may remove, relocate, and/or store any outdoor furniture found on the Concession Area that has otherwise not been removed by the Concessionaire pursuant to this subsection. Any and all costs incurred by the City for removal, relocation and/or storage of Concessionaire's furniture shall be the responsibility of the Concessionaire. 31 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed,all as of the day and year first above written,Indicating their agreement. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: Rafael E.Granado,City Clerk Alina T. Hudak, City Manager Date FOR CONCESSINAIRE: TASTE BAKERY MB CITY HALL, LLC ATTEST: By: Witness Aditya Th e,Manager fi lt\etcl ) Ji3#ns Print Naae Print NaSne c 2\9A 2D2S Date APPROVED AS TO FORM Et LANGUAGE &FOR EXECUTION 1iIz?J_ y Attorney. % r c 28 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 LEASE AGREEMENT THIS LEASE AGREEMENT, made this 1st day of March , 2023 ("Lease" or "Lease Agreement"), by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, (hereinafter referred to as "City" or "Landlord"), and TASTE BAKERY MB CITY HALL, LLC, a Florida limited liability company, (hereinafter referred to as "Tenant"). 1. Demised Premises. the City owns the 1701 Meridian Building Condominium (the"Condominium"), comprised of ground floor retail spaces (Units 1-4), each having their own physical address, and a four story office building (Units 5-8), with each floor representing one unit), having a physical address of 1701 Meridian Avenue (the "Building"). Unit 4 of the Condominium (the "Unit") has 1,269 square feet of space located on the ground floor, and as more specifically delineated in Exhibit 1A, attached hereto and incorporated herein by reference. The City, in consideration of the rentals hereinafter reserved to be paid and of the covenants, conditions and agreements to be kept and performed by the Tenant, hereby leases, lets and demises to the Tenant, and Tenant hereby leases and hires from the City, that certain ground floor retail space, located in Unit 4 of the Condominium, having approximately 734 square feet (inclusive of one (1) bathroom), as depicted in Exhibit 1, attached hereto and incorporated herein by reference, and as more fully described as follows: The easterly 734 square feet of Unit 4, of 1701 Meridian Building Condominium, a Condominium, according to the Declaration thereof, as recorded in Official Records Book 25724, at Page 1183, of the Public Records of Miami-Dade County, Florida a/k/a 773 17th Street (the "Demised Premises"). 1.1. The City and Tenant are parties to a concession agreement dated March 1 , 2023 (the "Concession Agreement"), relating to a concession area depicted in Exhibit 1_1, for 507 square feet of outdoor space adjacent to and east of the Demised Premises (the "Concession Area"). 1.2. The Concession Area and Demised Premises are more specifically delineated in Exhibit 1.("Layout"), attached hereto and incorporated herein. 2. Term. 2.1. Tenant shall be entitled to have and to hold the Demised Premises for an initial term of five (5) years, commencing on the 1st day of March 2023 (the "Commencement Date"), and ending on the 28th day of February 2028. For purposes of this Lease Agreement, and including, without limitation, Subsection 2.2 herein, a "Contract Year" shall be defined as that certain period commencing on the 1st day of January, and.ending on the 31st day of December. DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 2.2. Provided Tenant is in good standing and free from default(s) under Section 18 hereof, and upon written notice from Tenant, which notice shall be submitted to the City Manager no earlier than one hundred eighty (180) days, but in any case no later than one hundred twenty (120) days prior to the expiration of the initial term (or prior to the expiration of the first renewal term, as the case may be), this Lease may be extended, at the City Manager's sole and reasonable discretion, for one (1), four(4) year and 364 days renewal term. Any extension, if approved, shall be memorialized in writing and signed by the parties hereto (with the City hereby designating the City Manager as the individual authorized to execute such extensions on its behalf). In the event that the City Manager determines, in his/her sole and reasonable discretion, not to extend this Lease Agreement(upon expiration of the initial term), the City Manager shall notify Tenant of same.in writing, which notice shall be provided to Tenant within thirty (30) business days of the City Manager's receipt of Tenant's written notice. 2.3. Notwithstanding anything in this Subsection, or any other term or condition in this Lease Agreement, the City reserves the right, through its City Manager, to terminate this Lease Agreement, without cause and without liability to the City, upon providing Tenant with one hundred eighty (180) days prior written notice. 2.4. Tenant may take possession of the Demised Premises and Concession Area prior to the Commencement Date upon execution of the Lease Agreement by all parties hereto and by providing written Notice to Landlord of Tenant's intent to occupy the Demised Premises. Any additional time provided to Tenant shall be added to the initial Contract Year and as such, any and all amounts of Rent, Additional Rent, Reimbursements, due to, or proffered by the Landlord, shall be prorated accordingly for the additional days. 3. Rent. 3.1. Base Rent: Tenant's payment of Rent, as defined in this Section 3, shall commence on March 1. 2023 (the "Rent Commencement Date") and, thereafter, on each first day of subsequent months. The Base Rent for the Demised Premises shall be for Thirty Thousand and Ninety- four Dollars ($30,094.00) per year, payable in monthly installments of Two Thousand, Five Hundred and Seven 83/100($2,507.83), with annual three percent (3%) escalations on the anniversary date of the rent commencement date and throughout the entire term of the Lease. 3.2. Additional Rent: In addition to the Base Rent, as set forth in Section 3.1, Tenant shall also pay the 2 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 following Additional Rent as provided below: 3.2.1. Operating Expenses. Property Taxes; Insurance; and Common Area Maintenance (CAM): Tenant shall remit together with regular monthly payments of Minimum Rent, its proportionate share of estimated Operating Expenses for the Premises as additional rent, as determined by Landlord, in its sole discretion and judgment, including Property Taxes, Insurance, and CAM, and as more particularly described hereinafter. Subsequent to the expiration of a given Contract Year, Landlord shall provide Tenant with a reconciliation with respect to the actual total Operating Expenses and Tenant's actual Proportionate Share of the Operating Expenses for the subject Contract Year. As such, If Tenant's Operating Expense Payment for a particular Operating Expense is less than Tenant's actual Proportionate Share(the"Shortage"), Tenant shall remit the Shortage amount upon receipt of a request for payment from the Landlord. If Tenant's Operating Expense Payment for a particular Operating Expense is more than Tenant's actual Proportionate Share (the "Overage"), Landlord, shall apply a credit for the Overage amount toward any payments due from Tenant under the Lease, during the next ensuing Contract Year. Additionally, Landlord, in its sole discretion, may adjust Tenant's Operating Expense Payment to reflect the prior Contract Year's Operating Expenses, retroactive to the beginning of the effective Contract Year. Tenant's Proportionate Share means a fraction, the numerator of which is the square footage of the Demised Premise occupied by the Tenant, and the denominator of which is the total Rentable Area of the Building or Unit, as applicable. Landlord may also implement and choose a more appropriate method to calculate Tenant's Proportionate Share for different Operating Expenses, such as, but not limited to, Proportionate Share of replacement value for insurance, Proportionate Share of Rentable Area for Cam, Proportionate Share of Unit for property taxes, individual or sub- metering for utilities, individual assessments if Tenant is solely responsible, or any other method which the Landlord, in its sole discretion and judgment, may reasonably deem more appropriate in assessing Tenant's share of Operating Expenses. Tenant agrees and understands that the costs incurred for Operating Expenses may increase or decrease from time to as Operating expenses are increased to the Landlord and, as such, Tenant's Proportionate Share of Operating Expenses shall increase or decrease accordingly from time to time 3.2.1.1 Common Area Maintenance("CAM"): During the first Contract Year, the Operating Expenses for the Demised Premises shall be Two Thousand, Nine Hundred 3 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDE7 and Thirty-six and 04/100 Dollars ($2,936.04), payable in monthly installments of Two Hundred Forty-four and 67/100 Dollars ($244.67), for its proportionate share of CAM which is defined as follows: "Common Area Maintenance" shall mean the following costs and expenses incurred in operating, repairing, and maintaining the Common Facilities (as hereinafter defined) and shall include, without limitation, water service to the Building, sewer service to the Building, trash removal from the Building, costs incurred for gardening and landscaping, repairing and maintaining elevator(s), painting, janitorial services (except for areas within the Demised Premises), lighting, cleaning, striping, policing, removing garbage and other refuse and trash, removing ice and snow, repairing and maintaining sprinkler systems, water pipes, air-conditioning systems, temperature control systems, and security systems, fire alarm repair and maintenance and other equipment in the common areas and the exterior and structural portions of the Building, paving and repairing, patching and maintaining the parking areas and walkways, and cleaning adjacent areas, • management fees and the City's employment expenses to employees furnishing and rendering any services to the common areas, together with an additional administration charge equal to fifteen percent (15%) of all other expenses included in the annual common area expenses, provided by the City for the common or joint use and/or benefit of the occupants of the Building, their employees, agents, servants, customers and other invitees. "Common Facilities" shall mean all Building areas, spaces, equipment, as well as certain services, available for use by or for the benefit of Tenant and/or its employees, agents, servants, volunteers, customers, guests and/or invitees. Tenant agrees and understands that the costs incurred for Operating Expenses may increase or decrease and, as such, Tenant's pro-rata share of Operating Expenses shall increase or decrease accordingly. 3.2.1.2 Property Taxes: The estimated Property Tax Payment for the first Contract Year shall be based upon the 2022 Property Tax Payment, in the total sum of Four Thousand Nine Hundred Sixty-Four and 88/100 Dollars($4,964.88), payable in monthly installments of Four Hundred Thirteen and 74/100 Dollars ($413.74). 4 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Notwithstanding the preceding, Tenant shall be responsible for paying any difference in the amount between the estimated Property Tax Payment and the actual property taxes. Tenant shall pay, as Additional Rent pursuant to this Subsection for such Property Tax Year, an amount("Property Tax Payment") equal to Tenant's pro-rata share of Property Taxes (if any)for such Property Tax Year; said pro-rata share is currently determined by the City based upon the ratio of the square footage of the Demised Premises to the square footage of the Unit. If a Property Tax Year ends after the expiration or termination of the term of this Agreement, the Property Tax Payment therefore shall be prorated to correspond to that portion of such Property Tax Year occurring within the term of this Agreement. The Property Tax Payment shall be payable by Tenant immediately upon receipt of notice from the City. A copy of the tax bill(s) or other evidence of such taxes issued by the taxing authorities, together with the City's computation of the Property Tax Payment,will be made available to Tenant once received from the taxing authorities, if requested by Tenant. Tenant shall pay any difference in the amount between the estimated property taxes and the actual property taxes to the City immediately, upon receipt of request for said payment from the City. For the purposes of this Section and other provisions of this Agreement: The term "Property Taxes" shall mean (i) real estate taxes, assessments, and special assessments of any kind which may be imposed upon the Demised Premises, and (ii) any expenses incurred by the City in obtaining a reduction of any such taxes or assessments. The term "Property Tax Year" shall mean the period of twelve (12) calendar months, beginning on January 1st of each year. 3.2.1.3 Insurance: The Additional Rent shall also include Tenant's Proportionate Share of the insurance costs for the Building, as determined by the Landlord, in its sole discretion and judgment, to be sufficient to insure and/or self-insure the Building for hazard, flood, windstorm, and liability insurance for the following calendar year. Tenant acknowledges that Landlord may 5 DocuSign Envelope ID:F0E45064-F536-46F1-900A-7DAF31CCDDB7 choose to self-insure for any or all of Landlord's Insurance coverage's, including without limitation liability insurance. Tenant's Initial Insurance cost shall be One Thousand Five Hundred Thirty-three and 95/100 Dollars($1,533.95), payable in monthly installments of One Hundred Twenty-seven and 83/100 Dollars ($127.83). The Insurance cost may be adjusted from time to time, in the City's sole discretion. This insurance coverage is in addition to the insurance required pursuant to Section 10, which shall be obtained at Tenant's sole expense and responsibility. 3.3 Additional Services: In consideration for the reduced rent for the Demised Premises and Concession Area,Tenant shall provide a 40%discount on all purchases from any Taste Bakery eatery location within the City of Miami Beach, by City employees with an active and verified City of Miami Beach issued employee ID("Employee ID"); whether the purchase was made onsite or ordered for delivery("City Employee Discount"). City may choose to impose additional requirements, such as a card reader in order to ensure the integrity of the City Employee Discount. The Term "City Employee Purchase" is understood to mean the sales price of any purchases applied a City Employee Discount, inclusive of the City Employee Discount amount. It does not include the price of any other discounts Tenant may proffer to City employees or customers in general. City will reimburse Tenant a maximum of Two Hundred Thousand and 00/100 Dollars ($200,000.00) per Contract Year for a portion of the City Employee Discount at the following rates; Annual City Employee Reimbursement Rate Purchases Reimbursement From To Maximum 40% of City Employee $ - $ 422,400.00 $ 168,960.00 Purchases 20% of City Employee $ 422,400.01 $ 629,333.33 $ 31,040.00 Purchases 0% of City Employee Greater Than $ 629,333.34 $ - Purchases Thereafter, Tenant will continue to provide the City Employee Discount regardless of any reimbursement amount. 6 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 City reserves the right to Notify Tenant, in advance of any purchases, of City's objection to provide the City Employee Discount to any particular City employee, thereafter authorizing Tenant to deny the City Employee Discount to said employee. City will not reimburse Tenant for any amounts discounted above 40% of the purchase price, unauthorized employees as Tenant has been Notified by City, and persons without an active Employee ID. Along with any reimbursement request, Tenant shall provide a Daily Sales Summary Report in a digital spreadsheet format (such as excel) which includes, Employee ID's numbers, and categories for City Employee Discounted Sales, from each store location as well as the Gross Receipts from the Demised Premises. Tenant shall also provide Summary Reports for any period(s) upon request by the City. Any Summary Reports provided from any Taste Bakery location shall not be intermingled with any other location. 3.4 Sales Reporting: On or before the fifteenth (15th) day of each calendar month during the Lease Term, Tenant shall prepare and provide to landlord a copy of Tenant's Sales and Use Tax Return (Form DR-15CS or DR-15EZ)filed with the Florida Department of Revenue Reporting Gross Sales made from the Premises during the preceding calendar month. In addition, within sixty(60) days after the expiration date of each calendar year and within sixty (60) days after the termination of this Lease if this Lease should not terminate at the end of a calendar year, Tenant shall prepare and provide to landlord a payable Statement of Gross Sales made from the premises during the preceding calendar year, (or partial calendar year), certified to be correct by Tenant's Chief Financial Officer. Tenant shall furnish a similar statement for its licenses, concessionaires and subtenants, if any. The term "Gross Receipts" is understood to mean all income collected or accrued, derived by Tenant under the privileges granted by this Lease Agreement, excluding amounts of any Federal, State, or City sales tax, or other tax, governmental imposition, assessment, charge or expense of any kind, collected by Tenant from customers and required by law to be remitted to the taxing or other governmental authority. 3.4.1 Maintenance and Examination of Records. Tenant shall maintain current, accurate, and complete financial records on an accrual basis of accounting related to its operations pursuant to this Lease Agreement. Systems and procedures used to maintain these records shall include a system of internal controls and all accounting records shall be maintained in accordance with generally accepted accounting principles and shall be open to inspection and audit, but not photocopying, by the City Manager or his designee upon reasonable prior request and during normal business hours. Such records and accounts shall include a breakdown of Gross Receipts, expenses, and profit and loss statements, and such records shall be maintained as would be required by an independent CPA 7 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 in order to audit a statement of annual Gross Receipts and profit and loss statement pursuant to generally accepted accounting principles. 3.4.2 Inspection and Audit for Demised Premises . Tenant shall maintain its financial records pertaining to its operations for a period of three (3)years after the conclusion of any contract year and such records shall be open and available to the City Manager or his designee, as deemed necessary by them. Tenant shall maintain all such records at its principal office, currently located at 773 17th Street, Miami Beach, Florida 33139, or, if moved to another location, all such records shall be relocated, at Tenant's expense, to a location in Miami Beach, within ten (10) days' written notice from the City. The City Manager or his designee shall be entitled to audit Tenant's records pertaining to its operations as often as the City deems reasonably necessary throughout the Term of this Lease Agreement, and three (3) times within the three (3) year period following termination of this Lease Agreement, (regardless of whether such termination results from the natural expiration of the term or for any other reason). The City shall be responsible for paying all costs associated with such audits, unless the audit(s) reveals a deficiency of five (5%) percent or more in Tenant's statement of Gross Receipts for any year or years audited, in which case Tenant shall pay to the City, within thirty(30)days of the audit being deemed final (as specified below), the cost of the audit and a sum equal to the amount of the deficiency revealed by the audit, plus interest. The audit shall not be deemed final until Tenant has received the audit and has had a reasonable opportunity to review the audit and discuss the audit with the City. These audits are in addition to periodic audits by the City of Resort Tax collections and payments, which are performed separately. Nothing contained within this Section shall preclude the City's audit rights for Resort Tax collection purposes. 3.4.2.1 Tenant shall submit at the end of each contract year, an annual statement of Gross Receipts, in a form consistent with generally accepted accounting principles. Additionally, such statement shall be accompanied by a report from an independent CPA firm which shall perform certain agreed upon procedures, as described in the attached Exhibit 3.4.2.1. 3.4.2.2 It is Tenant's intent to stay informed of comments and suggestions by the City regarding Tenant's performance under this Lease Agreement. Within thirty (30) days after the end of each contract year, Tenant and the City Manager or his designee may meet to review Tenant's performance under this Lease Agreement for the previous contract year. At the 8 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 meeting, Tenant and City may discuss quality, operational, maintenance and any other issues regarding Tenant's performance under this Lease Agreement. 3.5 Sales Taxes. Concurrent with the payment of the Base Rent and Additional Rent as provided herein, Tenant shall also pay any and all sums for all applicable tax(es), including without limitation, sales and use taxes and Property Taxes, imposed, levied or assessed against the Demised Premises, or any other charge or payment required by any governmental authority having jurisdiction there over, even though the taxing statute or ordinance may purport to impose such tax against the City. 3.6 Enforcement. Tenant agrees to pay the Base Rent, Additional Rent, and any other amounts as may be due and payable by Tenant under this Agreement, at the time and in the manner provided herein, and should said rents and/or other additional amounts due herein provided, at any time remain due and unpaid for a period of fifteen (15) days after the same shall become due, the City may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately, or the City may pursue any other remedies enforced by law. 3.7 Inspector General Audit Rights 3.7.1 Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City has established the Office of the Inspector General which may, on a random basis, perform reviews, audits, inspections and investigations on all City contracts, throughout the duration of said contracts. This random audit is separate and distinct from any other audit performed by or on behalf of the City. 3.7.2 The Office of the Inspector General is authorized to investigate City affairs and empowered to review past, present and proposed City programs, accounts, records, contracts and transactions. In addition, the Inspector General has the power to subpoena witnesses, administer oaths, require the production of witnesses and monitor City projects and programs. Monitoring of an existing City project or program may include a report concerning whether the project is on time, within budget and in conformance with the contract documents and applicable law. The Inspector General shall have the power to audit, investigate, monitor, oversee, inspect and review operations, activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Tenant, its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. Pursuant to Section 2-378 of the City Code, the City is allocating a percentage of its overall annual contract expenditures to fund the activities and operations of the Office of Inspector General. 9 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 3.7.3 Upon ten (10) days written notice to the Tenant, the Tenant shall make all requested records and documents available to the Inspector General for inspection and copying. The Inspector General is empowered to retain the services of independent private sector auditors to audit, investigate, monitor, oversee, inspect and review operations activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Tenant its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. 3.7.4 The Inspector General shall have the right to inspect and copy all documents and records in the Tenant's possession, custody or control which in the Inspector General's sole judgment, pertain to performance of the contract, including, but not limited to original estimate files, change order estimate files, worksheets, proposals and agreements from and with successful subcontractors and suppliers, all project-related correspondence, memoranda, instructions, financial documents, construction documents, (bid/proposal) and contract documents, back-change documents, all documents and records which involve cash, trade or volume discounts, insurance proceeds, rebates, or dividends received, payroll and personnel records and supporting documentation for the aforesaid documents and records. 3.7.5 The Tenant shall make available at its office at all reasonable times the records, materials, and other evidence regarding the acquisition (bid_preparation) and performance of this Agreement, for examination, audit, or reproduction, until three (3) years after final payment under this Agreement or for any longer period required by statute or by other clauses of this Agreement. In addition: i. If this Agreement is completely or partially terminated, the Tenant shall make available records relating to the work terminated until three (3) years after any resulting final termination settlement; and ii. The Tenant shall make available records relating to appeals or to litigation or the settlement of claims arising under or relating to this Agreement until such appeals, litigation, or claims are finally resolved. 3.7.6 The provisions in this Section shall apply to the Tenant, its officers, agents, employees, subcontractors and suppliers. The Tenant shall incorporate the provisions in this Section in all subcontracts and all other agreements executed by the Tenant in connection with the performance of this Agreement. 3.7.7 Nothing in this Section shall impair any independent right to the City to conduct audits or investigative activities. The provisions of this Section are neither intended nor shall they be construed to impose any liability on the City by the Tenant or third parties. 10 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 4 Location for Payments. All rents or other payments due hereunder shall be paid to the City at the following address: City of Miami Beach Finance Department 1700 Convention Center Drive, 3rd Floor Miami Beach, Florida 33139 or at such other address as the City may, from time to time, designate in writing. 5. Parking. Tenant may request, at Tenant's cost, from the City's Parking Department, the use of no more than Four (4) parking spaces, if available, within the Municipal Parking Garage at the prevailing rates, plus applicable sales and use tax per space. Rates for said spaces are subject to change. 6. Security Deposit. Upon execution of this Agreement,the amount withheld from Tenant's current lease shall Transfer to this Agreement as a Security Deposit, in the amount of Five Thousand and 00/100 Dollars ($5,000.00). Said Security Deposit shall serve to secure Tenant's performance in accordance with the provisions of this Agreement. In the event Tenant fails to perform in accordance with said provisions, the City may retain said Security Deposit, as well as pursue any and all other legal remedies provided herein, or as may be provided by applicable law. 6.1 The parties agree and acknowledge that the foregoing condition is intended to be a condition subsequent to the City's approval of this Agreement. Accordingly, in the event that Tenant does not satisfy the aforestated, then the City Manager or his designee may immediately, without further demand or notice, terminate this Agreement without being prejudiced as to any remedies which may be available to him for breach of contract. 7. Use and Possession of Demised Premises. 7.1 The Demised Premises shall be used by Tenant solely for the purpose(s) of operating a café. Tenant shall cook, prepare, or cause to be prepared, for sale within the Demised Premises, such cooked, prepared, and/or prepackaged foods, and such non-alcoholic beverages as those set forth in Exhibit 7.1 (Menu), attached hereto and incorporated herein. 7.2 Tenant agrees that prices charged for sales of food and beverage service, and will be consistent with the price schedule herein submitted by the Tenant and approved by the City, and incorporated herein as Exhibit 7.1 to this Agreement. All subsequent price approvals and changes must be approved in writing by the City Manager or his/her designee. Prices shall be reasonably consistent with those 11 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 charged for similar items and services in the general vicinity. The City Manager shall have the final right of approval for all such prices and changes, but said right shall not be arbitrarily or unreasonably exercised. The Tenant agrees to refrain from the sale of any item identified as prohibited by the City and to sell only those items approved by the City. 7.3 The Demised Premises shall be open for operation a minimum of five (5) days a week, with minimum hours of operation being as follows: Hours of Operation: Monday- Friday: 7:00 AM to 5:00 PM Saturday and Sunday: 8:00AM to 2:00PM Nothing herein contained shall be construed to authorize hours contrary to the laws governing such operations. Any change in the minimum days and/or hours of operation shall require the prior written consent of the City Manager. 7.4 It is understood and agreed that the Demised Premises shall be used by the Tenant during the Term of this Agreement only for the purpose(s)/use(s) set forth in Section 7 hereof, and for no other purpose(s) and/or use(s)whatsoever. Tenant will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by law, ordinance or government regulation, or that may be dangerous to life, limb or property. Tenant may not commit(nor permit)waste on the Demised Premises; nor permit the use of the Demised Premises for any illegal purposes; nor commit a nuisance on the Demised Premises. In the event that the Tenant uses the Demised Premises (or otherwise allows the Demised Premises to be used) for any purpose(s) not expressly permitted herein, or permits and/or allows any prohibited use(s)as provided herein,then the City may declare this Agreement in default pursuant to Section 18 or, without notice to Tenant, restrain such improper use by injunction or other legal action. 8. Improvements. 8.1 Tenant accepts the Demised Premises in their present "AS IS" condition and may construct or cause to be constructed, such interior and exterior improvements and maintenance to the Demised Premises, as reasonably necessary for it to carry on its permitted use(s), as set forth in Section 7; provided, however, that any plans for such improvements shall be first submitted to the City Manager for his/her prior written consent, which consent, if granted at all, shall be at the City Manager's sole and absolute discretion. Additionally, any and all approved improvements shall be made at Tenant's sole expense and responsibility. All permanent (fixed) improvements to the Demised Premises shall remain the property of the City upon termination and/or expiration of this Agreement. Upon termination and/or expiration of this Agreement, all personal property and non-permanent trade fixtures may be removed by the Tenant from the Demised Premises, provided that they can be (and are) removed without damage to the Demised Premises. Tenant will permit no liens to attach to the Demised Premises arising from, connected with, 12 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 or related to the design and construction of any improvements. Moreover, such construction shall be accomplished through the use of licensed, reputable contractors who are acceptable to the City. Any and all permits and or licenses required for the installation of improvements shall be the sole cost and responsibility of Tenant. Tenant will refresh the location with some new furniture, decorations, update some cabinetry, and paint. Possibly change of the layout of the space slightly, if necessary, to accommodate for increased sales, including a larger prep area for the kitchen. All work performed by Tenant for space improvements is at Tenant's sole cost and expense. Tenant's work is subject to Landlord's review and approval of Tenant's plan and specifications, which shall be drawn by a licensed architect if a building permit is required. All of Tenant's works shall be performed by licensed contractors and in accordance with all applicable codes. 8.2 Notwithstanding Subsection 8.1, upon termination and/or expiration of this Agreement, and at City's sole option and discretion, any or all alterations or additions made by Tenant to or in the Demised Premises shall, upon written demand by the City Manager, be promptly removed by Tenant, at its expense and responsibility, and Tenant further hereby agrees, in such event, to restore the Demised Premises to their original condition prior to the Commencement Date of this Agreement. 8.3 The above requirements for submission of plans and the use of specific contractors shall not apply to improvements (which term, for purposes of this Subsection 8.3 only, shall also include improvements as necessary for Tenant's maintenance and repair of the Demised Premises) which do not exceed Five Hundred ($500.00) Dollars, provided that the work is not structural, and provided that it is permitted by applicable law. 8.4 Tenant Improvements. Tenant agrees to make certain improvements (the "Tenant Improvements") to the Demised Premises (valued by the parties at approximately Seven Thousand and 00/100 Dollars ($7,000), as contained in Exhibit 8.4 (Tenant Improvements), attached hereto and incorporated herein. The Tenant Improvements shall be made in accordance with the following timeline: • Tenant shall obtain a building permit no later than sixty (60) days from the Commencement Date of this Agreement; • Tenant shall commence making the Tenant Improvements no later than thirty (30) days from the date the building permit is issued (the "Building Permit Date"); and • Tenant Improvements shall be completed, and Tenant shall obtain final 13 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 approval by the City's Building Department for said Tenant Improvements, no later than one hundred eighty(180) days from the Building Permit Date. Failure to comply with the timeline and complete the Tenant Improvements within the time period specified shall constitute an event of default hereunder. The times for performance related to the permitting and construction of the Tenant Improvements, as set forth in this Section 8.4, may be extended for good cause shown, upon request, in writing, to the City Manager, which extension by the City Manager (if approved) shall also be in writing and shall not be unreasonably withheld. 8.4.1 Tenant shall provide the City with proof that the contractor engaged for the construction of the Tenant Improvements has obtained the requisite insurance coverage, as set forth on the attached Exhibit 8.4 (Contractor's Insurance Requirements), listing Tenant and the City as an additional insured thereunder. 9. City's Right of Entry. 9.1 The City Manager, and/or his/her authorized representatives, shall have the right to enter upon the Demised Premises at all reasonable times for the purpose of inspecting same; preventing waste; making such repairs as the City may consider necessary; and for the purpose of preventing fire, theft or vandalism. The City agrees that, whenever reasonably possible, it shall use reasonable efforts to provide notice (whether written or verbal), unless the need to enter the Demised Premises is an emergency, as deemed by the City Manager, in his/her sole discretion, which if not immediately addressed could cause property damage, loss of life or limb, or other injury to persons. Nothing herein shall imply any duty on the part of the City to do any work that under any provisions of this Agreement the Tenant may be required to perform, and the performance thereof by the City shall not constitute a waiver of the Tenant's default. 9.2 If the Tenant shall not be personally present to open and permit entry into the Demised Premises at any time, for any reason, and any entry thereon shall be necessary or permissible, the City Manager, and/or his/her authorized representatives, may enter the Demised Premises by master key, or may forcibly enter the Demised Premises without rendering the City or such agents liable therefore. 9.3 Tenant shall furnish the City with duplicate keys to all locks including exterior and interior doors prior to (but no later than by) the Commencement Date of this Agreement. Tenant shall not change the locks to the Demised Premises without the prior written consent of the City Manager, and in the event such consent is given, Tenant shall furnish the City with duplicate keys to said locks in advance of their installation. 14 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 10. Tenant's Insurance Requirements. 10.1. Tenant shall maintain throughout the Term, at its sole cost and expense, the following insurance requirements: 10.1.1 Worker's Compensation Insurance for all employees of the vendor as required by Florida Statute 440, and Employer Liability insurance for bodily injury or disease. Should the Tenant be exempt from this Statute, the Tenant and each employee shall hold the City harmless from any injury incurred during performance of the Agreement. The exempt Tenant shall also submit (i) a written statement detailing the number of employees and that they are not required to carry Workers' Compensation insurance and do not anticipate hiring any additional employees during the term of this Agreement or(ii) a copy of a Certificate of Exemption. 10.1.2 Commercial General Liability Insurance on an occurrence basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than$1,000,000 per occurrence, and $2,000,000 general aggregate. 10.1.3 All-Risk property and casualty insurance,written at a minimum of eighty (80%) percent of replacement cost value and with replacement cost endorsement, covering all leasehold improvements installed in the Demised Premises by or on behalf of Tenant and including without limitation all of Tenant's personal property in the Demised Premises (including, without limitation, inventory, trade fixtures, floor coverings, furniture, and other property removable by Tenant under the provisions of this Agreement). 10.1.4 Business interruption insurance, sufficient to insure Tenant for no less than one (1) full year of loss of business, with the Landlord named thereon as loss payee to the extent permitted by applicable law. 10.2 Additional Insured - City of Miami Beach must be included by endorsement as an additional insured with respect to all liability policies (except Professional Liability and Workers' Compensation) arising out of work or operations performed on behalf of the Tenant including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired or borrowed in the form of an endorsement to the Tenant's insurance. 15 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 10.3 Notice of Cancellation - Each insurance policy required above shall provide that coverage shall not be cancelled, except with notice to the City of Miami Beach c/o EXIGIS Insurance Compliance Services. 10.4 Waiver of Subrogation — Tenant agrees to obtain any endorsement that may be necessary to affect the waiver of subrogation on the coverages required. However, this provision applies regardless of whether the City has received a waiver of subrogation endorsement from the insurer. 10.5 Acceptability of Insurers — Insurance must be placed with insurers with a current A.M. Best rating of A:VII or higher. If not rated, exceptions may be made for members of the Florida Insurance Funds (i.e. FWCIGA, FAJUA). Carriers may also be considered if they are licensed and authorized to do insurance business in the State of Florida. 10.6 Verification of Coverage — Contractor shall furnish the City with original certificates and amendatory endorsements, or copies of the applicable insurance language, effecting coverage required by this contract. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH do EXIGIS Insurance Compliance Services P.O. Box 4668—ECM #35050 New York, NY 10163-4668 Kindly submit all certificates of insurance, endorsements, exemption letters to our servicing agent, EXIGIS, at: Certificates-miamibeach(a�riskworks.com 10.7 Special Risks or Circumstances - The City of Miami Beach reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 10.8 Compliance with the foregoing requirements shall not relieve the vendor of his liability and obligation under this Section or under any other section of this agreement. 16 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 11. Intentionally Omitted 12. Assignment and Subletting. Tenant shall not have the right to assign or sublet the Demised Premises, in whole or in part, without the prior written consent of the City Manager, which consent, if granted at all shall be at the City Manager's sole and absolute discretion. Such written consent is not a matter of right and the City is not obligated to give such consent. If granted as provided herein, the making of any assignment or sublease will not release Tenant from any of its obligations under this Agreement. 13. Operation, Maintenance and Repair. 13.1 Tenant shall be solely responsible for the operation, maintenance and repair of the Demised Premises. Tenant shall, at its sole expense and responsibility, maintain the Demised Premises, and all fixtures and appurtenances therein, and shall make all repairs thereto, as and when needed, to preserve them in good working order and condition. Tenant shall be responsible for all interior walls and the interior and exterior of all windows and doors, as well as immediate replacement of any and all plate glass or other glass in the Demised Premises which may become broken, using glass of the same or better quality. 13.1.1 The City shall be responsible for the maintenance of the roof, the exterior of the Building, the structural electrical and plumbing (other than plumbing surrounding any sink(s)and/or toilet(s), including such sink(s) and toilet(s) fixture(s), within the Demised Premises), the common areas and the chilled water supply system. The City shall maintain and/or repair those items that it is responsible for, so as to keep same in proper working condition. 13.1.2 •If the City provides a separate air-conditioning unit for the Demised Premises, Tenant agrees and understands that Tenant shall be solely responsible for the maintenance, repair and replacement of the heating/ventilation/air-conditioning (HVAC) equipment servicing the Demised Premises, at Tenant's sole expense. 13.1.3 Tenant further agrees and understands that, if the City provides a separate HVAC unit for the Demised Premises, the City, at its sole discretion, may require that Tenant obtain, at any time during the Term of this Agreement, and continuously maintain in good standing, at Tenant's expense, throughout the Term of this Agreement, a maintenance and repair contract, approved by the City,with a service company previously approved in writing by the City, providing for the preventative maintenance and repair of all HVAC equipment servicing the Demised Premises. In the event that the City notifies Tenant that it will require Tenant to contract for said maintenance and repair services, Tenant shall provide to the City, in writing, within 17 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 ten (10) business days, the name(s) and telephone number(s) of service company(ies)for the City's review and approval.Tenant shall provide a copy of a current, enforceable and fully executed maintenance and repair contract, no later than ten (10) business days after receipt of the City's approval of the service company, as proof of Tenant's compliance with this provision. 13.2 All damage or injury of any kind to the Demised Premises, and including without limitation its fixtures, glass, appurtenances, and equipment (if any), or to the building fixtures, glass, appurtenances, and equipment, if any, except damage caused by the gross negligence and/or willful misconduct of the City, shall be the sole obligation of Tenant, and shall be repaired, restored or replaced promptly by Tenant, at its sole expense and to the satisfaction of the City. 13.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to or better than the original work or installations and shall be done in good and workmanlike manner. 13.4 If Tenant fails to make such repairs or restorations or replacements, the same may be made by the City, at the expense of Tenant, and all sums spent and expenses incurred by the City shall be collectable by the City and shall be paid by Tenant within three (3) days after submittal of a bill or statement therefore. 13.5 It shall be Tenant's sole obligation and responsibility to insure that any renovations, repairs and/or improvements made by Tenant to the Demised Premises comply with all applicable building codes and life safety codes of governmental authorities having jurisdiction. 13.6 Tenant Responsibilities for Utilities (not included within Operating Expenses). Tenant is solely responsible for, and shall promptly pay when due all charges for electricity, gas, cable, telephone, internet, janitorial garage service, pest control and any other utility service provided to the Demised Premises, including, without limitation, all hook-up fees and impact fees, NOT included as an Operating Expense (pursuant to Subsection 3.2.1). In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Tenant to pay for such utility services(as contemplated in this Subsection 13.6) when due, the City may elect, at its sole discretion, to pay same, whereby Tenant agrees to promptly reimburse the City upon demand. In no event, however, shall the City be liable, whether to Tenant or to third parties, for an interruption or failure in the supply of any utilities or services to the Demised Premises. 13.7 TENANT HEREBY ACKNOWLEDGES AND AGREES THAT THE DEMISED PREMISES ARE BEING LEASED IN THEIR PRESENT "AS IS" CONDITION. 18 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 14. Governmental Regulations. Tenant covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City governments, and any and all of their departments and bureaus applicable to the Demised Premises, and shall also comply with and fulfill all rules, orders, and regulations for the prevention of fire, all at Tenant's own expense and responsibility. Tenant shall pay all cost, expenses, claims, fines, penalties, and damages that may be imposed because of the failure of Tenant to comply with this Section, and shall indemnify and hold harmless the City from all liability arising from each non-compliance. 15. Liens. Tenant will not permit any mechanics, laborers, or materialman's liens to stand against the Demised Premises or improvements for any labor or materials to Tenant or claimed to have been furnished to Tenant's agents, contractors, or sub-tenants, in connection with work of any character performed or claimed to have performed on said Premises, or improvements by or at the direction or sufferance of the Tenant; provided however, Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Tenant shall give the City reasonable security as may be demanded by the City to insure payment thereof and prevent sale, foreclosure, or forfeiture of the Premises or improvements by reasons of such non-payment. Such security need not exceed one and one half (1'/2) times the amount of such lien or such claim of lien. Such security shall be posted by Tenant within ten (10)days of written notice from the City, or Tenant may"bond off'the lien according to statutory procedures. Tenant will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Tenant's own expense. 16. Intentionally Omitted. 17. Condemnation. 17.1 If at any time during the Term of this Agreement (including any renewal term hereunder) all or any part or portion of the Demised Premises is taken, appropriated, or condemned by reason of Eminent Domain proceedings, then this Agreement shall be terminated as of the date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by reason of this Agreement or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date, and Tenant shall pay any and all rents, additional rents, utility charges, and/or other costs for which it is liable under the terms of this Agreement, up to the date of such taking. 17.2 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the City in any such Eminent Domain proceeding, excepting, however, Tenant shall have the right to claim and recover from the 19 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 condemning authority, but not from the City, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business by reasons of the condemnation and for or on account of any cost or loss which Tenant might incur in removing Tenant's furniture and fixtures. 18. Default. 18.1 Default by Tenant: At the City's option, any of the following shall constitute an Event of Default under this Agreement: 18.1.1 The Base Rent, Additional Rent, or any other amounts as may be due and payable by Tenant under this Agreement, or any installment thereof, is not paid promptly when and where due, and Tenant shall not have cured such failure within five(5)days after receipt of written notice from the City specifying such default; 18.1.2 The Demised Premises shall be deserted, abandoned, or vacated; 18.1.3 Tenant shall fail to comply with any material term, provision, condition or covenant contained herein other than the payment of rent and shall not cure such failure within thirty (30) days after the receipt of written notice from the City specifying any such default; or such longer period of time acceptable to the City, at its sole discretion; 18.1.4 Receipt of notice of violation from any governmental authority having jurisdiction dealing with a law, code, regulation, ordinance or the like, which remains uncured for a period of thirty (30) days from its issuance, or such longer period of time as may be acceptable and approved in writing by the City Manager, at his sole discretion; 18.1.5 Any petition is filed by or against Tenant under any section or chapter of the Bankruptcy Act, as amended,which remains pending for more than sixty (60) days, or any other proceedings now or hereafter authorized by the laws of the United States or of any state for the purpose of discharging or extending the time for payment of debts; 18.1.6 Tenant shall become insolvent; 18.1.7 Tenant shall make an assignment for benefit of creditors; 18.1.8 A receiver is appointed for Tenant by any court and shall not be dissolved within thirty (30) days thereafter; or 20 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 18.1.9 The leasehold interest is levied on under execution; or 18.1.10 A default under the Concession Agreement (as such agreement is referenced in Subsection 1.1 of this Agreement). 18.2 Rights on Default. 18.2.1 In the event of any default by Tenant as provided herein, City shall have the option to do any of the following, in addition to and not in limitation of, any other remedy permitted by law or by this Agreement; 18.2.2 Terminate this Agreement, in which event Tenant shall immediately surrender the Demised Premises to the City, but if Tenant shall fail to do so the City may,without further notice, and without prejudice to any other remedy the City may have for possession or arrearages in rent or damages for breach of contract, enter upon the Demised Premises and expel or remove Tenant and its effects in accordance with law, without being liable for prosecution or any claim for damages therefore, and Tenant agrees to indemnify and hold harmless the City for all loss and damage which the City may suffer by reasons of such Agreement termination, whether through inability to re-let the Demised Premises, or otherwise. 18.2.3 Declare the entire amount of the Base Rent and Additional Rent which would become due and payable during the remainder of the term of this Agreement to be due and payable immediately, in which event Tenant agrees to pay the same at once, together with all rents therefore due, at the address of the City, as provided in the Notices Section of this Agreement; provided, however, that such payment shall not constitute a penalty, forfeiture, or liquidated damage, but shall merely constitute payment in advance of the rents for the remainder of said term and such payment shall be considered, construed and taken to be a debt provable in bankruptcy or receivership. 18.2.4 Enter the Demised Premises as the agent of Tenant, by force if necessary, without being liable to prosecution or any claim for damages therefore; remove Tenant's property there from; and re-let the Demised Premises, or portions thereof, for such terms and upon such conditions which the City deems, in its sole discretion, desirable, and to receive the rents therefore, and Tenant shall pay the City any deficiency that may arise by reason of such re-letting, on demand at any time and from time to time at the office of the City; and for the purpose of re-letting, the City may (i) make any repairs, changes, alterations or additions in or to said Demised Premises that may be necessary or convenient; (ii) pay all costs and expenses 21 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 therefore from rents resulting from re-letting; and (iii) Tenant shall pay the City any deficiency as aforesaid. 18.2.5 Take possession of any personal property owned by Tenant on said Demised Premises and sell the same at public or private sale, and apply same to the payment of rent due, holding Tenant liable for the deficiency, if any. 18.2.6 It is expressly agreed and understood by and between the parties hereto that any installments of rent accruing under the provisions of this Agreement which shall not be paid when due shall be subject to a late charge of Fifty and 00/100 ($50.00), plus interest at the rate of eighteen (18%) percent per annum, or the maximum amount allowable under Florida law, whichever is lesser, from the due date of payment until such time as payment is actually received by the City. Any failure on the City's behalf to enforce this Section shall not constitute a waiver of this provision with respect to future accruals of past due rent. 18.2.7 If Tenant shall default in making any payment of monies to any person or for any purpose as may be required hereunder, the City may pay such expense but the City shall not be obligated to do so. Tenant, upon the City's paying such expense, shall be obligated to forthwith reimburse the City for the amount thereof. All sums of money payable by Tenant to the City hereunder shall be deemed as rent for use of the Demised Premises and collectable by the City from Tenant as rent, and shall be due from Tenant to the City on the first day of the month following the payment of the expense by the City. 18.2.8 The rights of the City under this Agreement shall be cumulative but not restrictive to those given by law and failure on the part of the City to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 18.3 Default by City: 18.3.1 The failure of the City to perform any of the covenants, conditions and agreements of this Agreement which are to be performed by the City and the continuance of such failure for a period of thirty (30) days after notice thereof in writing from Tenant to the City (which notice shall specify the respects in which Tenant contends that the City failed to perform any such covenant, conditions and agreements) shall constitute a default by the City, unless such default is one which cannot be cured within thirty (30) days because of circumstances beyond the City's control, and the City within such thirty (30) day period shall have commenced and thereafter shall 22 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 continue diligently to prosecute all actions necessary to cure such defaults. However, in the event the City fails to perform within the initial thirty (30) day period provided above, and such failure to perform prevents Tenant from operating its business in a customary manner and causes an undue hardship for Tenant,then such failure to perform (regardless of circumstances beyond its control) as indicated above, shall constitute a default by the City. 18.3.2 Tenant's Rights on Default. If an event of the City's default shall occur, Tenant, shall have the right to terminate this Agreement(and all of its obligations hereunder by giving notice of such election to the City, whereupon this Agreement shall terminate as of the date of such notice). 19 LAWS. 19.1 Compliance. Tenant shall comply with all applicable City, County, State, and Federal ordinances, statutes, rules and regulations (including but not limited to all applicable environmental City, County, State, and Federal ordinances, statutes, rules and regulations, as same may be amended from time to time. 19.2 No Discrimination. Tenant hereby agrees hereby agrees to comply with City of Miami Beach Human Rights Ordinance, as codified in Chapter 62 of the City Code, as may be amended from time to time, prohibiting discrimination in employment(including independent contractors), housing, public accommodations, public services, and in connection with its membership or policies because of actual or perceived race, color, national origin, religion, sex, intersexuality, sexual orientation, gender identity, familial and marital status, age, ancestry, height, weight, hair texture and/ or hair style, domestic partner status, labor organization membership, familial situation, political affiliation, or disability. 20 Indemnity Against Costs and Charges. 20.1 Tenant shall be liable to the City for all costs and charges, expenses, reasonable attorney's fees, and damages which may be incurred or sustained by the City, by reason of Tenant's breach of any of the provisions of this Agreement. Any sums due the City under the provisions of this item shall constitute a lien against the interest of the Tenant and the Demised Premises and all of Tenant's property situated thereon to the same extent and on the same conditions as delinquent rent would constitute a lien on said premises and property. 23 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 20.2 If Tenant shall at any time be in default hereunder, and if the City shall deem it necessary to engage an attorney to enforce the City's rights and Tenant's obligations hereunder, Tenant will reimburse the City for the reasonable expenses incurred thereby, including, but not limited to, court costs and reasonable attorney's fees, whether suit be brought or not and if suit be brought, then Tenant shall be liable for expenses incurred at both the trial and appellate levels. 21 Indemnification Against Claims. 21.1 Tenant shall indemnify, defend and save the City harmless from and against any and all claims or causes of action (whether groundless or otherwise) by or on behalf of any person, firm, or corporation, for personal injury or property damage occurring upon the Demised Premises or upon any other land or other facility or appurtenance used in connection with the Demised Premises, occasioned in whole or in part by any of the following: A. An act or omission on the part of Tenant, or any employee, agent, contractor, invitee, guest, assignee, sub-tenant or subcontractor of Tenant; B. Any misuse, neglect, or unlawful use of the Demised Premises by Tenant, or any employee, agent, contractor, invitee, guest, assignee, sub-tenant or subcontractor of Tenant; C. Any breach, violation, or non-performance of any undertaking of Tenant under this Agreement; D. Anything growing out of the use or occupancy of the Demised Premises by Tenant or anyone holding or claiming to hold through or under this Agreement. 21.2 Tenant agrees to pay all damages to the Demised Premises and/or other facilities used in connection therewith, caused by Tenant or any employee, agent, contractor, guest, or invitee of Tenant. 22 Signs and Advertising. Without the prior written consent of the City Manager, which consent, if given at all, shall be at the City Manager's sole and absolute discretion, Tenant shall not permit the painting and display of any signs, plaques, lettering or advertising material of any kind on or near the Demised Premises. All additional signage shall comply with signage standards established by the City and comply with all applicable building codes, and any other municipal, County, State and Federal laws. 23 Effect of Conveyance. The term "City" and/or"Landlord"as used in the Agreement means only the owner for the time being of the land and building containing the Demised Premises, so that in the event of any sale of said land and building, or in the event of a lease of said building, the City 24 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 shall be and hereby is entirely freed and relieved of all covenants and obligations of the City hereunder, and it shall be deemed and construed without further agreement between the parties, or between the parties and the purchaser at such sale, or the lease of this building, that the purchaser or Tenant has assumed and agreed to carry out all covenants and obligations of the City hereunder. 24 Damage to the Demised Premises. 24.1 If the Demised Premises shall be damaged by the elements or other casualty not due to Tenant's negligence, or by fire, but are not thereby rendered untenantable, as determined by the City Manager, in his sole discretion, in whole or in part, and such damage is covered by the City's insurance, if any, (hereinafter referred to as "such occurrence"), the City, shall, as soon as possible after such occurrence, utilize the insurance proceeds to cause such damage to be repaired and the Rent (Base Rent and Additional Rent) shall not be abated. If by reason of such occurrence,the Demised Premises shall be rendered untenantable, as determined by the City Manager, in his sole discretion, only in part, the City shall as soon as possible utilize the insurance proceeds to cause the damage to be repaired, and the Rent meanwhile shall be abated proportionately as to the portion of the Demised Premises rendered untenantable; provided however, that the City shall promptly obtain a good faith estimate of the time required to render the Demised Premises tenantable and if such time exceeds sixty (60) days, either party shall have the option of canceling this Agreement. 24.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, the City shall have the option, but not the obligation, in its sole discretion, to utilize the insurance proceeds to cause such damage to be repaired and the Rent meanwhile shall be abated. However, the City shall have the right, to be exercised by notice in writing delivered to Tenant within sixty (60) days from and after said occurrence, to elect not to reconstruct the destroyed Demised Premises, and in such event, this Agreement and the tenancy hereby created shall cease as of the date of said occurrence, the Rent to be adjusted as of such date. If the Demised Premises shall be rendered wholly untenantable,Tenant shall have the right, to be exercised by notice in writing, delivered to the City within thirty (30) days from and after said occurrence,to elect to terminate this Agreement, the Rent to be adjusted accordingly. 24.3 Notwithstanding, any clause contained in this Section 24, if the damage is not covered by the City's insurance, then the City shall have no obligation to repair the damage, but the City shall advise Tenant in writing within thirty (30) days of the occurrence giving rise to the damage and of its decision not to repair, and the Tenant may, at any time thereafter, elect to terminate this Agreement, and the Rent shall be adjusted accordingly. 25 Quiet Enjoyment. Tenant shall enjoy quiet enjoyment of the Demised Premises and shall not be evicted or 25 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 disturbed in possession of the Demised Premises so long as Tenant complies with the terms of this Agreement. 26 Waiver. 26.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of the City to insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Agreement, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 26.2 A waiver of any term expressed herein shall not be implied by any neglect of the City to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 26.3 The receipt of any sum paid by Tenant to the City after breach of any condition, covenant, term or provision herein contained shall not be deemed a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation, and not as Rent, unless such breach be expressly waived in writing by the City. 27 Notices. The addresses for all notices required under this Agreement shall be as follows, or at such other address as either party shall be in writing, notify the other: LANDLORD: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With copy to: Asset Manager Facilities and Fleet Management Department City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 TENANT: Aditya Thakore Taste Bakery MB City Hall, LLC 773 1 7th Street Miami Beach, Florida 33139 All notices shall be hand delivered, emailed, and a receipt requested, or by certified mail with Return receipt requested, and shall be effective upon receipt. 26 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 28 Entire and Binding Agreement. This Agreement contains all of the agreements between the parties hereto, and it may not be modified in any manner other than by agreement in writing signed by all the parties hereto or their successors in interest. The terms, covenants and conditions contained herein shall inure to the benefit of and be binding upon the City and Tenant and their respective successors and assigns, except as may be otherwise expressly provided in this Agreement. 29 Provisions Severable. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 30 Captions. The captions contained herein are for the convenience and reference only and shall not be deemed a part of this Agreement or construed as in any manner limiting or amplifying the terms and provisions of this Agreement to which they relate. 31 Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall include the singular, and the use of one gender shall include all genders. 32 Limitation of Liability. The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of Ten Thousand ($10,000.00) Dollars. Tenant hereby expresses its willingness to enter into this Agreement with Tenant's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $10,000.00. Accordingly, and notwithstanding any other term or condition of this Agreement, Tenant hereby agrees that the City shall not be liable to Tenant for damage in an amount in excess of $10,000.00 for any action or claim for breach of contract arising out of the performance or non- performance of any obligations imposed upon the City by this Agreement. Nothing contained in this Section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. 33 Surrender of the Demised Premises. Tenant shall, on or before the last day of the Term herein demised, or the sooner termination thereof, peaceably and quietly leave, surrender and yield upon to the City the Demised Premises, together with any and all equipment, fixtures, furnishings, appliances or other personal property, if any, located at or on the Demised Premises and used by 27 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Tenant in the maintenance, management or operation of the Demised Premises, excluding any trade fixtures or personal property, if any, which can be removed without material injury to the Demised Premises, free of all liens, claims and encumbrances and rights of others or broom-clean,together with all structural changes, alterations, additions, and improvements which may have been made upon the Demised Premises, in good order, condition and repair, reasonable wear and tear excepted, subject, however, to the subsequent provisions of this Section. Any property which pursuant to the provisions of this Section is removable by Tenant on or at the Demised Premises upon the termination of this Agreement and is not so removed may, at the option of the City, be deemed abandoned by Tenant, and either may be retained by the City as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the City may see fit. If the Demised Premises and personal property, if any, be not surrendered at the end of the Term as provided in this Section,Tenant shall make good the City all damages which the City shall suffer by reason thereof, and shall indemnify and hold harmless the City against all claims made by any succeeding tenant or purchaser, so far as such delay is occasioned by the failure of Tenant to surrender the Demised Premises as and when herein required. 34 Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 35 Venue: This Agreement shall be deemed to have been made and shall be construed and interpreted in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. CITY AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT THE CITY AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT. 36 Radon is a naturally occurring radioactive gas that, when it is accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of Radon that exceed Federal and State guidelines have been found in buildings in Florida. Additional information regarding Radon and Radon testing may be obtained from your County Public Health Unit. 37 No Dangerous Materials. Tenant agrees not to use or permit in the Demised Premises the storage and/or use of gasoline, fuel oils, diesel, illuminating oils, oil lamps, combustible powered electricity producing generators, turpentine, benzene, naphtha, propane, natural gas, or other similar substances, combustible materials, or explosives of any kind, or any substance or thing prohibited in the standard policies of fire insurance companies in the State of 28 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Florida. Any such substances or materials found within the Demised Premises shall be immediately removed. Tenant shall indemnify and hold the City harmless from any loss, damage, cost, or expense of the City, including, without limitation, reasonable attorney's fees, incurred as a result of, arising from, or connected with the placement by Tenant of any "hazardous substance" or"petroleum products" on, in or upon the Demised Premises as those terms are defined by applicable Federal and State Statute, 'or any environmental rules and environmental regulations promulgated thereunder. The provisions of this Section 37 shall survive the termination or earlier expiration of this Agreement. 38 Prohibitions Regarding Sale or Use of Expanded Polystyrene Food Service Articles or Plastic Straws. 38.1 Pursuant to Section 82-7 of the City Code, as may be amended from time to time, effective August 2, 2014, the City has prohibited the use of expanded polystyrene food service articles by City Contractors, in connection with any City contract, lease, concession agreement or Special event permit. Additionally, pursuant to Section 82-385 of the City Code, as may be amended from time to time, no polystyrene food service articles will be allowed in the right-of-way, and no polystyrene food service articles can be provided to sidewalk café patrons. 38.2 "Expanded polystyrene"is a petroleum byproduct commonly known as Styrofoam. Expanded polystyrene is more particularly defined as blown polystyrene and expanded and extruded foams that are thermoplastic petrochemical materials utilizing a styrene monomer and processed by any number of techniques including, but not limited to, fusion of polymer spheres (expandable bead foam), injection molding,foam molding, and extrusion-blown molding (extruded foam polystyrene). "Expanded polystyrene food service articles" means plates, bowls, cups, containers, lids, trays, coolers, ice chests, and all similar articles that consist of expanded polystyrene. 38.3 Tenant agrees not to sell, use, provide food in, or offer the use of expanded polystyrene food service articles at the Demised Premises or in connection with this Lease.Tenant shall ensure that all vendors operating in the Demised Premises abide by the restrictions contained in this Section 38. A violation of this Section shall be deemed a default under the terms of this Lease. This Subsection shall not apply to expanded polystyrene food service articles used for prepackaged food that have been filled and sealed prior to receipt by the Tenant or its vendors. 38.4 Additionally, Tenant agrees to comply(and ensure compliance by its vendors)with Section 46-92 (c) of the City Code, which states that it is unlawful for any person to carry any expanded polystyrene product onto any beach or into any park within the City or for any business to provide plastic straws with the service or delivery of any beverage to patrons on the beach. 29 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 39. Non-Alcoholic Product Exclusivity. The City reserves the right to execute exclusive product agreements and/or sponsorship agreements with third parties from time to time. Tenant agrees to be subject to the terms and conditions of those agreements, even if executed after the date of this Agreement. The City is in the process of negotiating exclusive pouring rights agreements with Pepsi, as the exclusive non-alcoholic beverage supplier(excluding energy drinks), and Red Bull for the energy drink category. Upon execution, Tenant will be notified and provided with the purchasing agent for the exclusive non-alcoholic beverage supplier. Upon receipt of written notification from the City, which could be pursuant to an e-mail, Tenant will not be permitted to purchase, sample or sell competitive products. Additionally, Tenant will be required to remove any equipment with the logo or name of any competitor of these sponsors. 40. Inspector General Audit Rights. 40.1 Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City has established the Office of the Inspector General which may, on a random basis, perform reviews, audits, inspections and investigations on all City contracts, throughout the duration of said contracts. This random audit is separate and distinct from any other audit performed by or on behalf of the City. 40.2 The Office of the Inspector General is authorized to investigate City affairs and empowered to review past, present and proposed City programs, accounts, records, contracts and transactions. In addition, the Inspector General has the power to subpoena witnesses, administer oaths, require the production of witnesses and monitor City projects and programs. Monitoring of an existing City project or program may include a report concerning whether the project is on time, within budget and in conformance with the contract documents and applicable law. The Inspector General shall have the power to audit, investigate, monitor, oversee, inspect and review operations, activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Tenant, its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. Pursuant to Section 2-378 of the City Code, the City is allocating a percentage of its overall annual contract expenditures to fund the activities and operations of the Office of Inspector General. 40.3 Upon ten (10) days written notice to the Tenant, the Tenant shall make all requested records and documents available to the Inspector General for inspection and copying. The Inspector General is empowered to retain the services of independent private sector auditors to audit, investigate, monitor, oversee, inspect and review operations activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Tenant its officers, agents and employees, lobbyists, City staff and 30 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 elected officials to ensure compliance with the contract documents and to detect fraud and corruption. 40.4 The Inspector General shall have the right to inspect and copy all documents and records in the Tenant's possession, custody or control which in the Inspector General's sole judgment, pertain to performance of the contract, including, but not limited to original estimate files, change order estimate files,worksheets, proposals and agreements from and with successful subcontractors and suppliers, all project- , related correspondence, memoranda, instructions, financial documents, construction documents, (bid/proposal) and contract documents, back-change documents, all documents and records which involve cash, trade or volume discounts, insurance proceeds, rebates, or dividends received, payroll and personnel records and supporting documentation for the aforesaid documents and records. 40.5 The Tenant shall make available at its office at all reasonable times the records, materials, and other evidence regarding the acquisition (bid_preparation) and performance of this Agreement, for examination, audit, or reproduction, until three (3)years after final payment under this Agreement or for any longer period required by statute or by other clauses of this Agreement. In addition: If this Agreement is completely or partially terminated, the Tenant shall make available records relating to the work terminated until three (3) years after any resulting final termination settlement; and ii. The Tenant shall make available records relating to appeals or to litigation or the settlement of claims arising under or relating to this Agreement until such appeals, litigation, or claims are finally resolved. 40.6 The provisions in this Section shall apply to the Tenant, its officers, agents, employees, subcontractors and suppliers. The Tenant shall incorporate the provisions in this Section in all subcontracts and all other agreements executed by the Tenant in connection with the performance of this Agreement. 40.7 Nothing in this Section shall impair any independent right to the City to conduct audits or investigative activities. The provisions of this Section are neither intended nor shall they be construed to impose any liability on the City by the Tenant or third parties. 41. Tenant's Compliance with Florida's Public Records Law. 41.1 Tenant shall comply with Florida Public Records law under Chapter 119, Florida Statutes, as may be amended from time to time. 41.2 The term "public records" shall have the meaning set forth in Section 119.011(12), which means all documents, papers, letters, maps, books, tapes, photographs, 31 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. 41.3 Pursuant to Section 119.0701 of the Florida Statutes, if the Tenant meets the definition of"Contractor" as defined in Section 119.0701(1)(a), the Tenant shall: A. Keep and maintain public records required by the City to perform the service; B. Upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes or as otherwise provided by law; C. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed, except as authorized by law, for the duration of the contract term and following completion of the Agreement if the Tenant does not transfer the records to the City; D. Upon completion of the Agreement,transfer, at no cost to the City, all public records in possession of the Tenant or keep and maintain public records required by the City to perform the service. If the Tenant transfers all public records to the City upon completion of the Agreement, the Tenant shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Tenant keeps and maintains public records upon completion of the Agreement,the Tenant shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City. 41.4 Request for Records; Noncompliance. A. A request to inspect or copy public records relating to the City's contract for services must be made directly to the City. If the City does not possess the requested records, the City shall immediately notify the Tenant of the request, and the Tenant must provide the records to the City or allow the records to be inspected or copied within a reasonable time. B. Tenant's failure to comply with the City's request for records shall constitute a breach of this Agreement, and the City, at its sole discretion, may: 3 unilaterally terminate the Agreement; (2) avail itself of the remedies set forth under the Agreement; and/or(3) avail itself of any available remedies at law 32 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 or in equity. C. A Tenant who fails to provide the public records to the City within a reasonable time may be subject to penalties under s. 119.10. 41.5 Civil Action. A. If a civil action is filed against a Tenant to compel production of public records relating to the City's contract for services, the court shall assess and award against the Tenant the reasonable costs of enforcement, including reasonable attorneys' fees, if: The court determines that the Tenant unlawfully refused to comply with the public records request within a reasonable time; and ii. At least 8 business days before filing the action, the plaintiff provided written notice of the public records request, including a statement that the Tenant has not complied with the request, to the City and to the Tenant. B. A notice complies with subparagraph(A)(ii)if it is sent to the City's custodian of public records and to the Tenant at the Tenant's address listed on its contract with the City or to the Tenant's registered agent. Such notices must be sent by common carrier delivery service or by registered, Global Express Guaranteed, or certified mail, with postage or shipping paid by the sender and with evidence of delivery, which may be in an electronic format. C. A Tenant who complies with a public records request within 8 business days after the notice is sent is not liable for the reasonable costs of enforcement. 41.6 IF THE TENANT HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE TENANT'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: CITY OF MIAMI BEACH ATTENTION: RAFAEL E. GRANADO, CITY CLERK 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 E-MAIL: RAFAELGRANADO@MIAMIBEACHFL.GOV PHONE: 305-673-7411 33 DocuSign Envelope ID:FOE45084-F536-46F1-900A-7DAF31CCDDB7 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed,all as of the day and year first above written,Indicating their agreement. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: Dom:Signed by: iA,.. ..:.-- , By: [!afati, e. arcun.ate oae� �� Rafael E. t;"ranac1o,ci� ty Clerk a T.Hudak,Ci anager 3/3/2023 I 11:35 AM EST Date FOR TENANT: TASTE BAKERY MB CITY HALL, LLC ATTEST: By: 24'z/Irr--- 1,",/�- e" Witness Manage g . �houko-.Ci • Aditva Thakore Print Name Print Name ,rq - Th Witness WI Print ame 2-LS 20'Zc3 Date • APPROVED:.;TO FORM fa LANGUAGE R EXECUTION I z 1 JZ3 at p ALTOr.iey VCE Dace 34 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 EXHIBIT 1 Demised Premises and Concession Area Layout ,� , fir gar /47 . e- - � N ,V Demised Premises g•. • ., cam ii �•.� r -t',.541 V A • ! w II Concession Area e � if..‘( F.. i Z� - � -- a }, ,! rp a . Il•::, V p., A :1 . A 1 *M'' �:� I > >: A II, • : v,� ,'' ! :ill ...... 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Page 4 of 9 1,1;Lc' k....74/6/iiarosilifi Exhibit"B" ea&il/7/2007 36 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Exhibit 3.4.2.1 (Pg1 of 2) AGREED-UPON PROCEDURES (A) System Utilized by Tenant: The tenant shall utilize a Point of Sales (POS) system that has the capability of tracking transactions by revenue centers. This system shall be capable of providing separate detail for each revenue center, as well as a combined report for the unit in its entirety. For this lease agreement, it is understood that the POS system can or will: 1. Generate various revenue centers, such as Restaurant, Bar, Catering, Merchandising, etc. as applicable; 2. Each revenue center can report sales by time period (e.g., breakfast, lunch and dinner) and type of sales (e.g., food, beer wine,, liquor, other beverage, coffee/tea), tax calculations, discounts, voids, guest counts, transaction counts,tips and payments(cash, Visa, MC, Amex, etc.); • Revenue Center shall also report sales by store location as well as reporting City Employee Purchases 3. All daily transactions entered in the POS system will be archived in the system, providing the capability to audit transactions. • City Employee Purchase Transactions shall also record the City Employee ID number. Furthermore, the tenant's accounting team will treat each revenue center with any different rent requirements as its own unit by preparing separate journals to capture gross sales, discounts and payments for each (where applicable). (B) Ag reed-upon procedures will include the followina: On an annual basis, the tenant shall prepare and deliver to the City, within the time specified in the agreement, a report prepared by a Certified Public Accountant applying these agreed-upon procedures that reflects their findings of their review of the tenant's operations. Such review,and report thereof, shall include the following: 1. ANALYSIS OF OPERATION: Inquire of management and obtain and review documentation on the nature of the tenant's business and the factors that affect sales.. Inquire about and document any major changes made during the period. a. Review procedures for recording sales within the Demised Premises. b. Obtain the operating policies and procedures from the tenant. c. Interview key tenant representatives to determine procedures used. d. Observe the utilization and effectiveness of the procedures through periodic site visits to the designated location. 2. ANNUAL STATEMENT OF GROSS RECEIPTS: Obtain the Annual Statement of Gross Receipts schedule for the year ended, prepared in conformity with the agreement. Recalculate lease fees for the period based on sales per the schedule and the terms of the agreement. 3. TIMELINESS OF LEASE PAYMENTS: Verify that the payments were remitted timely in adherence to the due dates designated by the City pursuant to the lease agreement. 37- DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Exhibit 3.4.2.1 (Pg2 of'2) AGREED-UPON PROCEDURES 4. TEST OF SALES BY REVENUE CENTER, TIME PERIOD AND TYPE OF SALES: Perform an analytical test of sales by obtaining a schedule summarizing sales by revenue center,time period, and type of sales. Obtain or prepare a reconciliation of total sales recorded in the general ledger for the period to the Annual Statement of Gross Receipts schedule provided to the City of Miami Beach. Perform the following procedures: e. Test the analysis by selecting each revenue center and related sub-categories, and compare the amounts shown with those recorded in the sales schedule. Document the items selected for testing.Agree the sales schedule balances to the general ledger. f. Review the analysis, and identify any unusual trends or variations within the period or the prior period. g. Obtain sound business reasons for large variations that are unusual in amount or nature Included in the analysis. 6. TEST OF SALES COMPLETENESS: Perform a test of sales completeness by applying the following procedures: a. Using sales documentation or daily POS reports, select 1 (one) day per month throughout the year, including weekdays and weekends. Document the items selected for testing. Trace a sample of guest checks (sales documentation -including cash sales and credit card sales) to the daily POS recaps. Note the proper handling of any credit memos, etc. b. Agree the summary information on the daily POS recap to proper recording in the general ledger, as appropriate. c. Agree a sample of deposits per the daily POS recap to the bank statements. d. Foot and cross foot a selected number of monthly reports of gross receipts submitted to the City and other linked documents to verify their accuracy. e. Compare total sales for selected months to sales tax returns filed with the applicable taxing jurisdictions. 7. VERIFICATION OF TENANT AREA OPERATIONS: Verify the status of operations within the designated area. a. Conduct site visits to determine the level of operations. b. Review provided documents to determine the period of activity. c. Discuss and document any variances with the tenant for explanation. (C) City Right to Review Notwithstanding the foregoing, the City shall retain the right to engage in all or similar reviews delineated above. Tenant agrees that the City, or their designee, shall be provided all necessary documentation to perform the tests,verifications and reviews described above. 38 DocuSign Envelope ID: F0E45084-F536-46F1-900A-7DAF31CCDDB7 Exhibit 7.1 Menu POWER BOWLS, RAT IOU CIAVI! (0) �a•ra1v�l 1.CHOOSE FRESR en"�Y� SANDWIca WRAP �S akat. n �, BAI�A CRO •9 G en 1 gip 1:CHOOSE 1�OGR T YOUR Q.�sa�g�a BAGEL SANDWICH .`81:::: *Genie ate D ccd ttDrharaw AVAII BOWL a ek.d•d.;tb biota., ---- ------- --- - ��p� 7• aaea•,....a.. S a:C A K' rlITAYA BOWL 17 Isw.ad d wall sao.�....DDIa The Herabowe BM' ' i Tha Lechad �Mr 9 S"y•...d•iri oat soli otst-ah �,,,,,,,, .o...rdc. „..ewle.o.d boon.•• .de•aa••V...a I Des.�bk •aa wIP too•named.•bowl•wa- •^n �I onelo•.moee•tomato•bate..aro.t mooed moat•D.DD.•t.cl cs«.. d.;.d;.e.ee«•D...n.blade olive. HOT,/rN L....Steel-Nt ont.m..ei wiTt .ke+e..v•amigo.amedc•Aver. ! •lapse•eaak.•ctl.n.•I taw•a woad° •boa claw.•hones.. alet••ad almond owl 12 __ ! .ja.D.:.•ak.tso bane w..:b d.ew,.a 13 YOGURT PARFAIT 9I<w-1."V PdrlkYtt""r' f�l The CaliLerat,er TL.Selaospppvxado A ��{ as litres•eb•ddes charge•avocado attune Tao Bow.; sek•d.al.wo'••wcod bled !t �N�� spinach l•ess..to ,ta.ke.best. •�•ade h.....tt ..d b.l..us.< YIC � !!199 ICC t Tb® Lt>nu.d Tl a 3. u g Th.ChtatSt.akErEae,` ' . PL CEHO .ER . Th.P,ot.l. .._ •Dol«•..'ja i.• ::sima°>•(people ay b. d�-cke b. . nokwo.i YwDesiehLCasao.Nuh sirloin t«L bled. •aa ed.edv. dv.dd..<h•.. 1 „- ;be odes•orbppl t.•..n6 , 'no.. •<sco •«:: hwids<6«w h robs almond demo... is _ 17 .V.. .a..c�ol. gals boos TASTE OP FA P SANDWICHES • E.ergt••ad:P.a�lq nosh.•.ea can•..•Db.rra•wale. b.a....•s...al...g.e. an- b ..•a 1 Availe:dew au Bagel,or Snuclwicil::. The Los The Bras eta Avocado s The Gran Dreams The Vacation Power Hnsdrq b D.a..na.,d.�.strawberries bk.6«.t«.p..aat m choose•.mok.J hotter-wade b.uukat•...o- u.de.ae.•.d.ms... pea.,�t buttes b.cao•. butte..bane,' a.a.do.on•twa••Moss, 1 4012) «two:•tomatoes• n•da•/rests w .ails•601- •avocado•8J•Dr• •can.*a:b.•...bon:« dad <•D«.•e.;a•• ...Ianalma•sk+•seals n•bacon•s;a,u.s•eds ew.•a.•....h.t.•<6.. Ldi.aB.e . B s •i -_-_-.—--- -_Y. •ltt.rb.••e.pout.pout. •e•d.•ean•e wove D e•DDI.•mangoes•bass .cocoa to•Ismael* i7f 15 12 •ups,.'int .es.•..d. r._—ua 13 39 DocuSign Envelope ID: F0E45084-F536-46F1-900A-7DAF31CCDDB7 g!STV 1:CHOOSE YOUR BASE STU 2:010061 YOUR MATURE TASIE ...,- TIWATE161191110111117TOOPITAILVIIS lie Riviera TbeBaedkok. The Greek lie[Wien The Montego Bey The Avocado Club' lllaVI iniI:RU(1;R iDiiAPra Sark3 WERR ,...dare.•;•.w :o..dy«a @puma...nc.o' ;•ooLeact'•om.m.. .p,..A.•..otAn r....mo'•t nonos BOWL met..1,w...byu •p...,.p•cNcc4y. I.o. l.&ol a. 1.b•.il•rW.l•d .Ml antra•*orom •.pplNmci larva WRAP • •'s.lted ems•61..k .,.odl•.•.pro..b • .claret towel.•, 7 rod peppers•Ire.6 •El.ck be.ead.m. ,a.do•.w. r, •,,...I.. Wed.alms.Iota mrAla•pest° •om ole;la Aloes* thee.*•womdo...ek .. .Redderdo••• Au..u.ed.o.o.� ckw... e.dpep- .j •..qcy;*ha.w `.__dr..a*e____. .clam*rahtre•ma. cilantro he.o..p,es Ro pwnereek l<I. H H !.ors ma.drew.* p*.a.t drmiy drew.a 0•Cilantro Brews Rice •Wtwat 14 — d testted TWO$.tsar •QQ saw •Spinach ��11II .Diced tiaskbroww •Gerlic Ps•slo • _The Fersb 'osue The UltimoTlse Berry Nice 141 SANDWICH SALAD =k.tr•Aaron•to..- ;mom. •to.alves I loam;dreg.:•.t- toe*,...ben :.I.s.sloe.•dnnd' mascl. •M6. The Ramat TheCeeau The nag Pe �3c ••.om.b•6o.w*.. krasber•le.•„o,. heat tors II apcieromt bac.. �._ ors. d moa•l u•ea' p� o,m• •gaoq•ua:lio.wd. do.wdvah.bo.rq 9 boil•.J .plcklo,.eaWd 6e.d a .pl•pem 1•.!t ...W.I.... ; ever.d,oa;.e •� t .. ..°oy,nnma w ce6,m.y .or .. dreg .I 1K Aee •„�o 6..J.•...antte 1q wee .•! .peen a., I •g-Grata ,�rotissael s! •Rosario* `� 1} adee...l,o..y ..,Arse ma.. Abee..•.and d.*ac.a �o77��•Beafluette n , $ ineeb ..eed d:e.,iea �rwoa 13 --1•Ciebatta 'Nei p 12 12 ` i' .Mired Greens .,a......•A..a.1..4...,e.il.y.eel..d•1.111;.L...mg...,.............J,JIa0.,...,tI..... ..II,.I w.1......i.....Jrr,..Inw. 0 0 3 CHOOSE TO R P SOUP QF THE my CHICKEN BREAST eLACKFOREST HAM TURKEY BREAST OUR PAP Ot iu&DAY MI PANGS eO A}RlE:OnG Asa-a AXU RAL San AtYSTm ALL-MATUTAL wait SERVED WITH A SIDE Of TOAST /* 0 0 BOWL OF SOUP s ADD A CUP OF SOUP TO CMICKE I SALAD FEMME PATTY TUNA SALAD - YOUR ENTREE FOR 3 iAbT[H7n.E I A::; C8!POTtZ LAC Wit 6 CORM ?AM EIdUrE)(At) _. ,/•1 `•+ V) wad,Taker t»teta. -------- E. All eutrees come with TASTE PREMIUMPROTEINS. n pickle!Add ou oxtra **4 10+5 Wa i COLESLAW SALMON FILLET IMPOSSIBLE MEATBALLS BEEF STEAK I POTATO SALAD *ALB" n AiuN+nc_ t-us Rost PLANT e!t ____s_stR:na±1 BAG OF CHIPS 1.1 40 DocuSign Envelope ID: F0E45084-F536-46F1-900A-7DAF31CCDDB7 FRESH JUI a_R TA Made fresh to order-Served by the 2Uoz-jj UTE SHOTS Citrus Splash Detox on the Rox Miami Mojito q l pineapple•orange tutu ber5•green pineapple•cu- = 3-5oz BigShot served with en • ginger•lemon apples•beets• cumber•mint = s •mint celery •lemon a orange wedge chaser 114.911 2reelt Orange Blush- Herbal Zinger _ The Ginger Shot Isac$ine oranges•strawber- green apples = ginger•lemon•honey kale,.celery•green ries•green apples •lemon•ginger T1 S apples• %mon•Cu— •basil cumbers The Super Shot = Fruit Punch Power Hour Heart Beet = ginger•lemon• turmeric pine pple•green green apple•tor_. 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Hied•/- GI•L,.e 3 330 C.,.•oFl.sl..ro 330 )_50 _ 16..:-6 - 20o,•750 1 sot..sit. •r«o.oe..et., cream corees,.mer •o•d.•.I.ro•d _ C•Ie Db.Ls 1 130 Cortsdito 23(1 )56 ,bsrt..•et•o.dstalk U.'''. 1 1.50 Cold. 2.50 350 MochC6lp •.•4,,•,_?_- Du.YCLdiau. 5 550 NaahTw Fio... _.i Gppomoo ) )30 a.vr••o..a..o.,b.•cbmol•r..y,.p Island Blest( SoBeS•aset Peachesn'Gree. MpeeleBead, cdeA••,,,,, 250 ) •.,..,II•..o.... pm«.ppl..banana taaphotru••pplo. w.b.s•.pmsd e.,..L.... - p•8, T 6i..d. 250 3 . ..nil. .dl.,m. •L•.a .•e•.....p. •b.m .•i,..b .!dB•.Cottm 330 1 Caram•lava ,.. m lo•o••ay...ymp cocoo.,.•,•,•.w,.l,a. c,eeee it s•p,e•s•ca.••el••a•Il.n cream. .are, Y1e .e a. TASTE t..t 444 DR Fly Chai The Anti-Aging ll �� pip}Ept peanut Blast ���tl{uu���( L..a ou•e•M .�.•m..s lla ptoeapple•bass. Les•..•s-Ln Makha The Fat StTDS POIIDip .p..s,boan SplcedChei Fe.IGoodTea •om�,,s u,h,. dddeine - u ;59 t. "..!o,,,d•dt. tette L....e.• Green Tea Burnes MelchaGo•a'Do •ogre L,o q. tSsab.i F: mum iARNA Lo.aq L.,.m.� ens• v •es cL& . hot..areasee eb.me ea• ' town will. hse•Srsls rum •nerd. •L,..q• •.•Loney a..- • •• •• ..._..-.___..__, •.Laicalmilk :o,‘c.hcsq ;o,.e el..It ee,••i.,.le•m- ••••r .«tre• 15 41 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Exhibit 8.4 Tenant's Required Improvements And Contractor's Insurance Requirements 42 DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 r------- -- -- -- — — RESOLUTION NO. 2022-32427 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, PURSUANT TO A PUBLIC HEARING, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE OF THE CITY, AND APPROVING, IN SUBSTANTIAL FORM, (1) A LEASE AGREEMENT BETWEEN THE CITY(LANDLORD)AND TASTE BAKERY CAFE, LLC (TENANT) FOR USE OF APPROXIMATELY 734 SQUARE FEET OF GROUND FLOOR RETAIL SPACE LOCATED IN UNIT 4 OF 1701 MERIDIAN BUILDING CONDOMINIUM A/K/A 773 17TH STREET(DEMISED PREMISES), FOR AN INITIAL TERM OF FIVE (5) YEARS, WITH ONE (1) ADDITIONAL RENEWAL •TERM OF FOUR (4) YEARS AND THREE HUNDRED SIXTY-FOUR (364),DAYS, AT THE CITY'S OPTION, FOR THE OPERATION OF AN EMPLOYEE CAFE THAT ALSO SERVES THE GENERAL PUBLIC; AND 2)A CONCESSION AGREEMENT BETWEEN THE CITY AND TASTE BAKERY CAFE, LLC (CONCESSIONAIRE), FOR USE OF AN OUTDOOR SEATING AREA, HAVING APPROXIMATELY 507 SQUARE FEET, LOCATED ADJACENT TO THE DEMISED PREMISES, AS AN ANCILLARY USE FOR THE DEMISED PREMISES DURING THE TERM OF THE LEASE;AND FURTHER AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE AGREEMENTS. WHEREAS, the City owns the 1701 Meridian Building Condominium (Condominium), comprised of ground floor retail spaces (Units 1-4), each having their own physical address, and a four story office building(Units 5-8,with each floor representing one unit), having a physical address of 1701 Meridian Avenue; and WHEREAS, on May 17, 2017, the Mayor and City Commission adopted Resolution No. 2017-29866, approving a Lease Agreement(2017 Lease Agreement) between the City and Taste Bakery Café, LLC. (Tenant) for the use of the eastern 2/3rds of Unit 4 of the Condominium a/k/a 773 17th Street, having approximately 734 square feet of ground floor(Demised Premises), and a Concession Agreement (2017 Concession Agreement) allowing Tenant to use an outdoor seating area adjacent to the Demised Premises, having approximately 507 square feet(Concession Area); said Agreements having a term of three (3)years commencing on November 1, 2017, and ending on October 31, 2020, with two renewal terms of one (1) year each (collectively,-the 2017 Agreements); and WHEREAS, both renewal options have been approved by the City Manager and the 2017 Agreements are set to expire on October 31, 2022 ; and WHEREAS, on April 29, 2022, the City issued Invitation to Negotiate (ITN) No. 2022-060- WG, seeking responses from interested parties to establish a new agreement for the operation of an employee café; However, no formal responses to the ITN were received; and WHEREAS,on August 5, 2022, LTC#377-2022 was issued advising the Mayor and the City Commission that the ITN had been closed, and the cone of silence had terminated; and WHEREAS, on September 14, 2022, the Mayor and City Commission approved the extension of City-awarded contracts, which included extending the term of the 2017 Agreements, on a month to month basis, for 120 days, until February 28, 2023; and DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 WHEREAS,the Administration reviewed options and conducted its own search for qualified tenants, including considering Tenant,for the operation of the employee café concept under a new agreement; and WHEREAS,at the September 14,2022 City Commission meeting, Item C4 0 was presented as a referral to the Finance and Economic Resiliency Committee (FERC) to discuss a new agreement for an employee café at 773 17th Street;and WHEREAS, at the October 31, 2022 Finance and Economic Resiliency Committee(FERC) meeting,the Administration presented the terms and conditions agreed upon.by the City and Tenant and the FERC recommended in favor of approving a new Lease Agreement and related Concession Agreement with Taste Bakery Café, LLC, based upon the terms and conditions presented at the FERC meeting,which included, among others, the following essential business terms: Lease Term: The term of this Lease shall be for a period of five(5)Years; Renewal Option: One (1) renewal option for four (4) years and three-sixty-four (364) days, at the City Manager's sole option; Commencement Dates: The Lease Commencement and Rent Commencement Date shall be the earlier of: 1) March 1, 2023 or 2)the date Tenant and Landlord execute the new Lease Agreement; Minimum Base Rent Initial Term Schedule: Year(s) Annual Annual Rent/SF Rent 1 $41.00 $30,094.00, plus applicable sales tax Rent to increase 3% per year during the Lease Term. • Security Deposit: The amount of $5,000.00, which is currently being held by the City from Tenant under the 2017 Lease Agreement shall be transferred to the new Lease Agreement; Operating Expenses: Tenant shall pay its pro rata share of Real Property Taxes, Property Insurance and Common Area Maintenance expenses, which are currently estimated to be $12.85 per square foot. Operating Expenses will be effective on the Rent Commencement Date; Concession Area: Tenant shall be required to execute a Concession Agreement coterminous with the Lease Agreement, at no additional cost to Tenant, which are the same terms that exist under the 2017 Concession Agreement in connection with the use of the Concession Area; DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 Delivery Conditions: Tenant shall accept the Premises in"As-Is"condition with no Landlord Work or tenant allowance. Tenant shall be responsible for the costs of any building permits, licenses, impact fees and any other costs associated with Tenant's use; Permitted Use: The Demised Premises shall be used by Tenant solely for the purpose(s) of operating a cafe, with the primary objective being to provide the City of Miami Beach employees with healthy food choices at a price which is discounted by forty percent(40%)off the approved price schedule and menu options, attached to the City Commission Memorandum accompanying this Resolution as Exhibit B ("Menu/Price Schedule"), while also permitted to sell to the general public; Additional Services: Tenant shall provide: • A forty percent (40%) discount on the purchase price of all food and beverages from any Taste Bakery Café location, within the City of Miami Beach to City employees with an active and verified City of Miami Beach issued employee identification ("Employee ID"); whether the purchase was made onsite or ordered for delivery. • Tenant will also provide a free coffee or tea with the purchase of any item. • Tenant will include City employees as part of their Rewards program to be eligible for a ten ($10)dollar credit to be used exclusively on the employee's birthday week at any Taste Bakery Café location. • Tenant will provide healthy conscious food, fruits and quick snacks. • The City will reimburse Tenant a maximum of Two Hundred • Thousand and 00/100 Dollars ($200,000.00) * per contract year towards the City Employee Discount at the following rates: • Annual City Maximum Annual Reimbursement Employee Purchases Reimbursement Rate $0-$422,400 $ 168,960.00 40% $422,400-$629,333.33 $ 31,040.00 20% Greater than$629,333.33 $0.00 0% *The Maximum reimbursement will be revisited on an annual basis in connection with the approval of the Lease option term to determine if the City Manager,at the City Manager's discretion,will approve a cost of living increase. Once the Maximum reimbursement amount is reached, Tenant will continue to provide the City Employee Discount without reimbursement from the City; DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 • Hours of Operation: Mon-Fri: 7AM-5PM Weekends: 8AM-2PM Tenant may consider opening in,the evening until 9pm or 10pm, if there is enough demand from City Employees who work in the evening that want.to eat at Taste; and Guarantor(s): Full personal guaranty shall be required by all owners and spouses; and WHEREAS, the City Manager recommends approving, in substantial form, a new Lease Agreement, a copy of which is attached to the City Commission Memorandum accompanying this Resolution as Exhibit"C"; and approving, in substantial form, a new Concession Agreement,a copy of which is attached to the City Commission Memorandum accompanying this Resolution as Exhibit "D";and further authorizing the City Manager to finalize and execute the Agreements. 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, pursuant to a public hearing, hereby accept the recommendation of the Finance and Economic Resiliency Committee, and approve, in substantial form, (1) a Lease Agreement between the City (Landlord)and Taste Bakery Café, LLC(Tenant)for use of approximately 734 square feet of ground floor retail space located in Unit 4 of 1701 Meridian Building Condominium a/k/a 773 17"' Street (Demised Premises),for an initial term of five(5)years,with one(1)additional renewal term of four (4) years and three hundred sixty-four (364) days, at the City's option, for the operation of an employee café that also serves the.general public; and 2) a Concession Agreement between the City and Taste Bakery Café, LLC (Concessionaire), for use of an outdoor.seating area, having approximately 507 square feet, located adjacent to the Demised Premises, as an ancillary use for. the Demised Premises during the term of the Lease Agreement; and•further authorize the City Manager to finalize and execute the Agreements. •PASSED and ADOPTED this 1� day of De ern_ 2022. ATTEST: DEC 1 6 2022 • Rafael E.Gra ado, City Clerk -1,0. E- Dan•Gelber, Mayor 111COR° O' APPROVED AS TO ,''4yRCH FORM St LANGUAGE F.• EXECUTION r • • /;i� City Attorney ate t.ItiCORiOUIED DocuSign Envelope ID:F0E45084-F536-46F1-900A-7DAF31CCDDB7 TASTE BAKERY MB CITY HALL • . LLC CONCESSION AGREEMENT