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689-2024 RDA RESOLUTION NO. 689-2024 • A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY ("RDA"), APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE RDA AND . CUBICHE 105, LLC AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE SETTLEMENT AGREEMENT AND TO TAKE THE NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF; AND FURTHER, APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY TO EXECUTE, CONSISTENT WITH THE TERMS OF SUCH SETTLEMENT AGREEMENT, AMENDMENT NO. 2 TO THE LEASE DATED DECEMBER 28, 2015 BETWEEN THE RDA AND CUBICHE 105, LLC. WHEREAS, pursuant to Resolution No. 614-2015, the Miami Beach Redevelopment Agency("RDA")("Landlord")and Cubiche 105, LLC("Tenant")executed a Lease dated December 28, 2015 ("Lease") for the operation of a restaurant (the "Restaurant") at Suite Nos. 1-3 of the, Anchor Retail Shops, located at 1555 Washington Ave ("Premises"); and WHEREAS, the Initial Lease Term is for nine (9) years and 364 days, commencing on January 15, 2016(although there is a scriveners error in Section 14 of the Lease summary,which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026 with two (2)five (5)-year renewal options; and WHEREAS, upon execution of the Lease, the Tenant began a$3 million renovation of the Premises, that exceeded the expected completion date and significantly delayed opening of the Restaurant; and WHEREAS, Tenant had just opened the Restaurant and was operating for two (2)weeks, when in March 2020, the COVID-19 pandemic forced the Tenant to shut down Restaurant operations and remain closed until March 1, 2021; and WHEREAS, Tenant qualified for additional rent abatement for FY 2021, for the period of October through December 2020, pursuant to Resolution No. 2021-317202; and WHEREAS, as a result of the Tenant having suffered significant losses in revenue and not being able to meet full rental obligations, the RDA adopted Resolution No. 661-2021, approving Amendment No.1 to the Lease; and WHEREAS, on or about June of 2022, Tenant began failing to make rent payments and as a result, Notices to Cure Default were sent by the RDA; and WHEREAS, on October 25, 2023, the RDA filed a commercial eviction action in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452-CA-01; and WHEREAS, at the January 31, 2024 meeting of the RDA, a closed Attorney-Client Session was held to discuss a settlement agreement regarding the pending litigation with the Tenant; and • • WHEREAS, the Chairperson and Members of the Board of the RDA directed the RDA's General Counsel to negotiate a settlement agreement and lease amendment in accordance with the direction provided at the Attorney-Client Session; and WHEREAS, the RDA staff recommends in favor of approving the Settlement Agreement, which is attached hereto as Exhibit "A" and executing Amendment No. 2 to the Lease, which is attached hereto as Exhibit "B" which contains terms consistent with the direction of the Chairperson and Members of Board of the RDA. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY ("RDA"), that the Chairperson and Members of the Board of the RDA approve the Settlement Agreement between the RDA and Cubiche 105, LLC in the form attached as Exhibit "A" to this Resolution and authorize the Executive Director to execute the Settlement Agreement and to take the necessary and appropriate steps for the implementation thereof; and further, approve and authorize the Executive Director and Secretary to execute, consistent with the terms of such Settlement Agreement, Amendment No. 2 to the Lease dated December 28, 2015 between the RDA and Cubiche 105, LLC. PASSED and ADOPTED this 3 day of April, 2024. 41 ,,,......—ifieit:0440.4. Steven Meiner, Chairperson ATT T: '6 ..?i/ APR A 8 2024 0:4My AveRafae E. Granado, Secretary - \ '=.IktORP UMW APPROVED AS TO FORM& LANGUAGE&FOR EXECUTION rer General Counsel 4 Date 2 Redevelopment Agency - RDA 1. MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, Executive Director DATE: April 3, 2024 SUBJECT:A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY ("RDA"), APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE RDA AND CUBICHE 105, LLC AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE SETTLEMENT AGREEMENT AND TO TAKE THE NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF; AND FURTHER, APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY TO EXECUTE, CONSISTENT WITH THE TERMS OF SUCH SETTLEMENT AGREEMENT, AMENDMENT NO. 2 TO THE LEASE DATED DECEMBER 28, 2015 BETWEEN THE RDA AND CUBICHE 105, LLC. • BACKGROUND/HISTORY On December 28, 2015, pursuant to Resolution No. 614-2015, the Miami Beach Redevelopment Agency ("RDA") ("Landlord") and Cubiche 105, LLC ("Tenant") executed a Lease ("Lease") for the operation of a restaurant (the "Restaurant") at Suite Nos. 1-3 of the • Anchor Retail Shops, located at 1555 Washington Ave ("Premises"). The Initial Lease Term is for nine (9) years and 364 days, commencing on January 15, 2016 (although there is a • Scrivener's error in Section 14 of the Lease summary, which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026,with two (2)five (5)-year renewal options. Upon execution of the Lease, the Tenant began a $3 million renovation of the Premises, that exceeded the expected completion date and significantly delayed opening of the Restaurant. Although the Premises remained closed and under construction for over two years, the Tenant met the monthly rental obligations during that period. Consequently, the construction delays did not allow Cubiche 105 to open until February 28, 2020. They were open and operating for two (2) weeks, when the COVI D-19 pandemic forced the Tenant to shut down Restaurant operations and remain closed until March 1, 2021. The Tenant was awarded full rental abatement from April 2020 through September 2020, pursuant to Resolution No. 2020-31332. The Tenant was further approved for Minimum Base Rent abatement for the period of October 2020 through December 2020, pursuant to Resolution No. 2021-31702, where Tenant was only paying monthly operating expenses.As a result of the Tenant having suffered significant loss in revenue and not able to meet full rental obligations, on October 13, 2021, the Chairperson and Members of the Miami Beach Page 1380 of 1445 Redevelopment Agency, adopted Resolution No. 661-2021, approving Amendment No. 1 to the Lease, which granted the Tenant with additional rent abatement requested and other modifications to the financial terms of the Lease. ANALYSIS On or about June of 2022, Tenant began failing to make rent payments and as a result, Notices to Cure Default were sent by the RDA. On October 25, 2023, the RDA filed a commercial eviction action in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452- CA-01. At the January 31, 2024, meeting of the RDA, a closed Attorney-Client Session was held to discuss a settlement agreement regarding the pending litigation with the Tenant. Pursuant to the direction received in that Session, the Parties reached a full and final compromise and settlement of all matters, causes of action, claims and contentions between them and memorialized the settlement in writing (the "Settlement Agreement"). The Settlement Agreement, which is attached hereto as Exhibit "A" to the Memorandum accompanying this Resolution, is contingent upon approval of the Chairperson and Members of the RDA. Having determined that settlement of the litigation is in the best interests of the RDA, the Chairperson and Members of the RDA desire to approve the Settlement Agreement and further, execute Amendment No. 2 to the Lease, which is attached hereto as Exhibit "B" which contains terms consistent with the direction of the Chairperson and Members of Board of the RDA. As more particularly set forth, Amendment No. 2 to the Lease provides the following modifications to the lease terms and rent structure: Lease Term: Renewal Options: Following the Lease Expiration Date of the Initial Lease Term, and subject to the following terms and conditions, Tenant may exercise the following two (2) Renewal Options: • "First Renewal Option": The First Renewal Option, shall have a term of five (5) Lease Years, commencing on January 1, 2026 and expiring on December 31, 2030, and shall be at the mutual option of the Tenant and Landlord, to be exercised not later than September 15, 2025, provided, if Tenant has not had any default between the Amendment No. 2 Commencement Date and December 31, 2025,the City will consent to Tenant's exercise of the First Renewal Option. The Minimum Rent payments due during the First Renewal Option term is hereby replaced with the modified rental payment structure set forth in • Section 2.3.1(c)of Amendment No. 2. • "Second Renewal Option": The Second Renewal Option, shall have a term of five (5) years, commencing on January 1, 2031 and expiring on December 31, 2035. Provided Tenant has not had any payment default or any other default that was not cured within the applicable cure period during the First Renewal Option period, Tenant, at Tenant's sole option, may exercise the Second Renewal Option no later than September 15, 2030. The Minimum Rent payments due during the Second Renewal Option term are hereby replaced with the modified rental payment structure set forth in Section 2.3 of Amendment. No. 2. Page 1381 of 1445 Effective June 1, 2022, the following shall be inserted as a new Section 2.3.1 of the Lease: (a) From June 1, 2022, through January 31, 2024, Tenant shall pay Percentage Rent equal to ten percent(10%)of Gross Sales for each month. (b) From February 1, 2024 through December 31, 2025, Tenant shall pay rent equal to the GREATER of (i) Minimum Rent of $25.00_PSF or (ii) Percentage Rent equal to 10% of Gross Sales for each month; provided, however, that Percentage Rent shall increase to 11% of Gross Sales once the total cumulative Gross Sales for a particular Lease Year exceeds $1,782,500.00; and, further, that the Percentage Rent shall increase to 12.5% on Gross Sales once the total cumulative Gross Sales amount for a particular Lease Year exceeds $2,000,000.00. Minimum Rent shall escalate by 3% on January 1st of each Lease Year. (c) For the First Renewal Option term (January 1, 2026 — December 31, 2030), Tenant shall pay rent equal to the GREATER of (i) Minimum Rent of $45.00 PSF or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however, that Percentage Rent shall increase to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds $3,116,818.18. Minimum Rent during the First Renewal Option term shall escalate annually on January 1st commencing on January 1, 2027, by 3%. (d) For the Second Renewal Option term (January 1, 2031 — December 31, 2035), Minimum Rent shall be adjusted based upon the Fair Market Rents in effect but not lower than the Minimum Rent payment for the last Lease Year of the First Renewal Option term. Rent for the Second Renewal Option term shall be equal to the GREATER of (i)the new Minimum Rent or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however, that Percentage Rent increases to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds the amount determined by adding $500,000.00 to the natural breakpoint (as defined below). Minimum Rent during the Second Renewal Option term shall escalate annually on January 1st commencing on January 1, 2032, by 3%. The "natural breakpoint" shall be determined for purposes of this subparagraph by dividing the annualized Minimum Rent during the first Lease Year of the Second Renewal Option term into 11%. (e) Minimum Rent payments pursuant to this Section shall be paid in advance on the 1st of each month and Monthly Percentage Rent payments pursuant to this Section 2.3.1 shall be due in respect of each such month by the 15th day of the following month and shall include a monthly report of Gross Sales receipts, along with any a State of Florida Sales Tax Return and any additional back-up documents which the City may request. (f)The Term "Gross Sales" as used herein shall include all receipts, whether collected or accrued from the Premises including, without limitation, receipts from the sale of food, beverage, alcoholic beverages, merchandise, rental of space, or from any other source whatsoever. (g)All Minimum Rent and Percentage Rent payments shall include applicable sales and use tax. (h) In addition to the modified rental structure set forth in this Subsection, Tenant shall be required to pay all additional rent payments required under the Lease including, without Page 1382 of 1445 limitation, Operating Expenses plus applicable sales and use tax. SUPPORTING SURVEY DATA NA FINANCIAL INFORMATION TBD CONCLUSION Based upon the foregoing, the RDA Executive Staff recommends the Chairperson 'and Members of the RDA Board approve the Settlement Agreement, which is attached hereto as Exhibit "A" to the Memorandum accompanying this Resolution between the RDA and Cubiche 105, LLC, and to take the necessary and appropriate steps for the implementation thereof; and further, approve and authorize the Executive Director and Secretary to execute, consistent with the terms of such Settlement Agreement, Amendment No. 2 to the Lease. Applicable Area South Beach Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? No . .. No. .. Legislative Tracking Facilities and Fleet Management ATTACHMENTS: Description ❑ Memorandum ❑ Resolution o Exhibit A- Settlement Agreement D Exhibit B -Amendment No.2 Page 1383 of 1445 Redevelopment Agency- RDA 1. MIAMI BEACH . COMMISSION MEMORANDUM TO: Honorable Mayor and Members oft City Commission FROM: Alina T. Hudak, Executive Direct Rafael Paz, City Attorney DATE: April 3, 2024 SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY("RDA"), APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE RDA AND CUBICHE 105, LLC AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE SETTLEMENT AGREEMENT AND TO TAKE THE NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF; AND FURTHER, APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR..AND. SECRETARY.TO .. EXECUTE, CONSISTENT WITH THE TERMS OF SUCH SETTLEMENT AGREEMENT, AMENDMENT NO. 2 TO THE LEASE DATED DECEMBER 28, 2015 BETWEEN THE RDA AND CpBICHE 105, LLC. BACKGROUND/HISTORY On December 28, 2015, pursuant to Resolution No. 614-2015, the Miami Beach Redevelopment Agency("RDA")("Landlord")and Cubiche 105, LLC("Tenant")executed a Lease ("Lease")for the operation of a restaurant(the "Restaurant")at Suite Nos. 1-3 of the Anchor Retail Shops, located at 1555 Washington Ave ("Premises").The Initial Lease Term is for nine (9) years and 364 days, commencing on January 15, 2016 (although there is a Scrivener's error in Section 14 of the Lease summary, which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026, with two (2) five (5)-year renewal options. Upon execution of the Lease, the Tenant began-a $3 million renovation of the Premises, that exceeded the expected completion date and significantly delayed opening of the Restaurant. Although the Premises remained closed and under construction for over two years, the Tenant met the monthly rental obligations during that period. Consequently, the construction delays did not allow Cubiche 105 to open until February 28, 2020. They were open and operating for two (2) weeks, when the COVID-19 pandemic forced the Tenant to shut down Restaurant operations and remain closed until March 1, 2021. Page 1384 of 1445 • The Tenant was awarded full rental abatement from April 2020 through September 2020, pursuant to Resolution No. 2020-31332. The Tenant was further approved for Minimum Base Rent abatement for the period of October 2020 through December 2020, pursuant to Resolution No. 2021-31702, where Tenant was only paying monthly operating expenses. As a result of the Tenant having suffered significant loss in revenue and not able to meet full rental obligations, on October 13, 2021, the Chairperson and Members of the Miami Beach Redevelopment Agency, adopted Resolution No. 661-2021, approving Amendment No. 1 to the Lease, which granted the Tenant with additional rent abatement requested and other modifications to the financial terms of the Lease. ANALYSIS On or about June of 2022, Tenant began failing to make rent payments and as a result, Notices to Cure Default were sent by the RDA. On October 25, 2023, the RDA filed a commercial eviction action in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452-CA-01. At the January 31, 2024 meeting of the RDA, a closed Attorney-Client Session was held to discuss a settlement agreement regarding the pending litigation with the Tenant. The Parties reached a full and final compromise and settlement of all matters, causes of action, claims and contentions between them and memorialized the settlement in writing (the "Settlement Agreement"). The Settlement Agreement, which is attached hereto as Exhibit "A" to the Memorandum accompanying this Resolution, is contingent upon approval of the Chairperson and Members of the RDA. having determined that settlement of the litigation is in the best interests of the RDA, the Chairperson and Members of the RDA desire to approve the Settlement Agreement and further, execute Amendment No. 2 to the Lease, which is attached hereto as Exhibit "B" which contains terms consistent with the direction of the Chairperson and Members of Board of the RDA. As more particularly set forth, Amendment No. 2 to the Lease provides modifications to the terms with: (a) From June 1, 2022 through January 31, 2024, Tenant shall pay Percentage Rent equal to ten percent(10%)of Gross Sales for each month. (b) From February 1, 2024 through December 31, 2025, Tenant shall pay rent equal to the GREATER of(i) Minimum Rent of$25.00 PSF or(ii) Percentage Rent equal to 10% of Gross Sales for each month; provided, however, that Percentage Rent shall increase to 11% of Gross Sales once the total cumulative Gross Sales for a particular Lease Year exceeds $1,782,500.00; and, further, that the Percentage Rent shall increase to 12.5% on Gross Sales once the total cumulative Gross Sales amount for a particular Lease Year exceeds $2,000,000.00. Minimum Rent shall escalate by 3% on January 1st of each Lease Year. Page 1385 of 1445 (c) For the First Renewal Option term(January 1, 2026—December 31, 2030),Tenant shall pay rent equal to the GREATER of (i) Minimum Rent of $45.00 PSF or (ii) Percentage Rent equal to 11%of Gross Sales for each month; provided, however, that Percentage Rent shall increase to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds $3,116,818.18. Minimum Rent during the First Renewal Option term shall escalate annually on January 1st commencing on January 1, 2027 by 3%. • (d) For the Second Renewal Option term (January 1, 2031 — December 31, 2035), Minimum Rent shall be adjusted based upon the Fair Market Rents in effect but not lower than the Minimum Rent payment for the last Lease Year of the First Renewal Option term. Rent for the Second Renewal Option term shall be equal to the GREATER of(i) the new Minimum Rent or(ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however, that Percentage Rent increases to 12.5%of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds the amount determined by adding $500,000.00 to the natural breakpoint (as defined below). Minimum Rent during the Second Renewal Option term shall escalate annually on January 1st commencing on January 1, 2032 by 3%. The "natural breakpoint" shall be determined for purposes of this subparagraph by dividing the annualized Minimum Rent during the first Lease Year of the Second Renewal Option term into 11%. (e) Minimum Rent payments pursuant to this Section 2.3.1 shall be paid in advance on the 1st of each month and Monthly Percentage Rent payments pursuant to this Section 2.3.1 shall be due in respect of each such month by the 15th day of the following month and shall include a monthly report of Gross Sales receipts, along with any a State of Florida Sales Tax Return and any additional back-up documents which the City may request. (f) The Term"Gross Sales"as used herein shall include all receipts,whether collected or accrued from the Premises including, without limitation, receipts from the sale of food,'beverage, alcoholic beverages, merchandise, rental of space, or from any other source whatsoever. (g) All Minimum Rent and Percentage Rent payments shall include applicable sales and use tax. (h) In addition to the modified rental structure set forth in this Subsection 2.3.1,Tenant shall be required to pay all additional rent payments required under the Lease including, without limitation, Operating Expenses plus applicable sales and use tax. SUPPORTING SURVEY DATA NA Page 1386 of 1445 FINANCIAL INFORMATION TBD CONCLUSION Based upon the foregoing, the RDA Executive Staff recommends the Chairperson and Members of the RDA Board approve the Settlement Agreement, which is attached hereto as Exhibit "A" to the Memorandum accompanying this Resolution between the RDA and Cubiche 105, LLC, and to take the necessary and appropriate steps for the implementation thereof; and further, approve and authorize the Executive Director and Secretary to execute, consistent with the terms of such Settlement Agreement, Amendment No. 2 to the Lease. Applicable Area South Beach Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? No Does this item utilize G.O. Bond Funds? No Legislative Tracking Facilities and Fleet Management ATTACHMENTS: Description Resolution Exhibit A- Settlement Agreement Exhibit B - Amendment No. 2 • Page 1387 of 1445 RESOLUTION NO. A-RESOLUTION OF THE-CHAIRPERSON AND-MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY ("RDA"), APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE RDA AND CUBICHE 105, LLC AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE SETTLEMENT AGREEMENT AND TO TAKE THE NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF; AND FURTHER, APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY TO EXECUTE, CONSISTENT WITH THE TERMS OF SUCH SETTLEMENT AGREEMENT, AMENDMENT NO. 2 TO THE LEASE DATED DECEMBER 28, 2015 BETWEEN THE RDA AND CUBICHE 105, LLC. WHEREAS, pursuant to Resolution No. 614-2015, the Miami Beach Redevelopment Agency("RDA")("Landlord")and Cubiche 105,LLC("Tenant")executed a Lease dated December 28, 2015 ("Lease") for the operation of a restaurant (the `Restaurant") at Suite Nos. 1-3 of the Anchor Retail Shops, located at 1555 Washington Ave("Premises"); and WHEREAS, the Initial Lease Term is for nine (9) years and 364 days, commencing on January 15, 2016(although there is a scriveners error in Section 14 of the Lease summary,which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026 with two (2)five (5)-year renewal options; and WHEREAS, upon execution of the Lease, the Tenant began a$3 million renovation of the Premises, that exceeded the expected completion date and significantly delayed opening of the Restaurant; and WHEREAS,Tenant had just opened the Restaurant and was operating for two(2)weeks, when in March 2020, the COVID-19 pandemic forced the Tenant to shut down Restaurant operations and remain closed until March 1, 2021; and WHEREAS, Tenant qualified for additional rent abatement for FY 2021, for the period of October through December 2020, pursuant to Resolution No. 2021-317202; and WHEREAS, as a result of the Tenant having suffered significant losses in revenue and not being able to meet full rental obligations, the RDA adopted Resolution No. 661-2021, approving Amendment No.1 to the Lease; and WHEREAS, on or about June of 2022, Tenant began failing to make rent payments and as a result, Notices to Cure Default were sent by the RDA; and WHEREAS,on October 25,2023, the RDA filed a commercial eviction action in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452-CA-01; and WHEREAS, at the January 31, 2024 meeting of the RDA, a closed Attorney-Client Session was held to discuss a settlement agreement regarding the pending litigation with the Tenant; and Page 1388 of 1445 WHEREAS, the Chairperson and Members of the Board of the RDA directed the RDA's General Counsel to negotiate a settlement agreement and lease amendment in accordance with the direction provided at the Attorney-Client Session; and- WHEREAS, the RDA staff recommends in favor of approving the Settlement Agreement, which is attached hereto as Exhibit"A"and executing Amendment No. 2 to the Lease, which is attached hereto as Exhibit "B" which contains terms consistent with the direction of the Chairperson and Members of Board of the RDA. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY("RDA"), that the Chairperson and Members of the Board of the RDA approve the Settlement Agreement between the RDA and Cubiche 105, LLC in the form attached as Exhibit "A" to this Resolution and authorize the Executive Director to execute the Settlement Agreement and to take the necessary and appropriate steps for the implementation thereof; and further, approve and authorize the Executive Director and Secretary to execute, consistent with the terms of such Settlement Agreement, Amendment No. 2 to the Lease dated December 28, 2015 between the RDA and Cubiche 105, LLC. PASSED and ADOPTED this day of April, 2024. Steven Meiner, Chairperson ATTEST: Rafael E. Granada, Secretary APPROVED AS TO FORM& LANGUAGE&FOR EXECUTION r,. General Counsel �� Date 2 Page 1389 of 1445 Exhibit"A" SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release("Agreement")dated as of April 2024("Effective Date") is entered into by Miami Beach Redevelopment Agency (the "RDA") and Cubiche105, LLC("Cubiche")(each a"Party"and all,together, the"Parties"). WHEREAS, the Parties entered into a Lease Agreement dated December 28, 2015 for approximately 7,130 square feet of retail space located at 1555 Washington Avenue, Suites 1-3, Miami Beach, Florida 33139(the"Lease"). WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami Dade County, Florida in the case styled Miami Beach Redevelopment Agency v. Cubiche 105,LLC,Case No.2023-025452-CA-01 seeking a commercial tenant eviction and for damages(the"Litigation"). WHEREAS, to avoid the costs and uncertainties of continued litigation, the Parties wish to enter into an Amendment No. 2 to Lease ("Amendment No. 2"), in the form attached to this Agreement as Exhibit 1, to be signed contemporaneously with this Agreement and settle the Litigation and all other claims and disputes between themselves, on the terms and conditions hereinafter set forth. NOW,THEREFORE,in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the adequacy, sufficiencyreceipt of which is hereby eq , y .. and.. .. y acknowledged,the Parties agree and represent as follows. 1. Recitals.The recitals are adopted and incorporated in this Agreement by reference. 2. Representation. This Agreement is entered into voluntarily by the Parties who stipulate and agree that they are under no duress or undue influence. The Parties represent that in the execution of this Agreement,they had the opportunity to consult legal counsel of their own selection with respect to the execution of this Agreement. 3. Lease Amendment.The parties agree to simultaneously and contemporaneously herewith execute Amendment No. 2. Cubiche agrees to make all payments due'upon execution of Amendment No. 2, as provided therein, simultaneously with the execution of this Agreement and this Agreement shall not become effective unless and until such payments are made. 4. Mutual Releases. a. The RDA hereby waives and irrevocably remises, releases, acquits and forever discharges Cubiche and its affiliates, subsidiaries,agents, and attorneys from any and all claims, causes of action,demands,rights, damages,costs, losses,expenses, compensation and obligations which exist or which may hereafter accrue. whether known or unknown, whether foreseen or unforeseen, whether matured or not mature,whether discovered or undiscovered,and the consequences thereof,having resulted, resulting or to result from (i) all matters or disputes which have been or Page 1390 of 1445 could-have been alleged-by the RDA in the Litigation and(ii)any and all claims for attorney's fees (including paralegal fees) and costs in any way related to the Litigation. Cubiche hereby waives and irrevocably remises, releases, acquits and forever discharges the RDA, and its affiliates, subsidiaries, agents, and attorneys, including without limitation the City of Miami Beach, from any and all claims,causes of action, demands,rights,damages,costs,losses,expenses,compensation and obligations which • exist or which may hereafter accrue,whether known or unknown,whether foreseen or unforeseen, whether matured or not mature, whether discovered or undiscovered,and the consequences thereof, having resulted, resulting or to result from (i) any liability arising out of the Lease , including all matters or disputes which have been or could have been alleged by Cubiche in the Litigation and(ii)any and all claims for attorney's fees(including paralegal fees)and costs in any way related to the Litigation; 5. Dismissal with Prejudice. Within five(5)business days from the latest to occur of(a)the date of execution of this Agreement, (b)the date of execution of the Lease Amendment or (c)the date Cubiche pays the RDA all amounts to be paid at the time Amendment No.2 is executed,the Parties will file a joint stipulation of dismissal with prejudice of the Litigation with each party to bear their own attorneys' fees and costs and with the court in such proceedings to reserve jurisdiction to enforce the terms of this Agreement. 6. Choice of Law and Venue. The Parties agree that this Agreement will be construed and enforced in accordance with the laws of the State of Florida. Venue for any proceeding arising out of this Agreement shall lie exclusively in the Eleventh Judicial Circuit in and for Miami Dade County, Florida. 7. Prevailing Party Fees and Costs. In any action to enforce, interpret, or seek damages for violation of this Agreement,the prevailing party shall recover its reasonable attorneys'fees and costs in connection with such efforts. 8. Waiver. No failure to enforce terms or conditions of this Agreement by any of the Parties shall constitute a waiver of any right to'assert any of the terms and conditions of this Agreement. 9. Severability of Provisions. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be impaired thereby. 10. Construction. Each Party hereto has participated in the negotiation and drafting of this Agreement, and there shall not be any presumption that the provisions of this Agreement shall be construed strictly against one or the other Party hereto. • 11.No Oral Modification. No term of this Agreement may be modified, amended, supplemented,or waived in any way except in a writing that is signed by the Parties. 2 Page 1391 of 1445 12.Entire Agreement. This Agreement, together with the Schedules, Exhibits, and releases referenced in it,constitute the final and complete statement of the agreement of the Parties on the subject matter hereof. There are no agreements, understandings, or representations relied on by the parties hereto with respect to the subject matter hereof other than those included in this Agreement. 13.Intentionally deleted. 14. Binding Nature. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, personal representatives, successors and assigns, and any corporation, partnership or other entity into or with which any Party hereto may merge, consolidate or reorganize. 15.Cooperation. Each Party hereto shall cooperate and take such actions, and execute such other documents as may reasonably be requested by another Party in order to carry out the provisions of this Agreement. 16.Authority to Execute.All signatories hereto represent and warrant that they have authority to execute this Agreement and thereby bind the party that they purport to represent, and further represent and warrant that this Agreement constitutes a.valid,.legal and binding.. agreement of each Party,and is enforceable against each such party in accordance with its terms. 17. Counterparts. This Agreement may be executed in multiple counterparts, and may be executed by facsimile, e-mail or pdf formats,and as so executed shall constitute one and the same agreement. The execution and delivery of this Agreement by either facsimile or electronic mail in PDF format shall be binding on the Party who so executes and on whose behalf the document is transmitted. 18. Captions.The captions and headings contained in this Agreement arc for convenience and reference only, and shall not be deemed to be construed as limiting or modifying in any manner the provisions of this Agreement. 19.Electronic Signature. The Parties hereby consent and agree that they may execute this Agreement and the documents contemplated to be executed in connection herewith by electronic signature, unless otherwise provided by law. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year indicated below each of their respective signatures. [SIGNATURE PAGES FOLLOWI 3 Page 1392 of 1445 [SIGNATURE PAGE TO SETTLEMENT AGREEMENT AND RELEASE] MIAMI BEACH REDEVLEOPMENT AGENCY Alina T. Hudak, City Manager Executive Director of the MBRA Dated: APPROVED AS TO FORM& LANGUAGE ATTEST: & FOR EXECUTION • 3 Z-� Redevelopment Agency Date Generoi C t,o ei �L Rafael E. Granado, Secretary CUBICHE 105, LLC By: Name: Title: Dated: 4 Page 1393 of 1445 it . • Exhibit"B" AMENDMENT NO. 2 TO LEASE BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY AND C4BICHE 105, LLC This Amendment No. 2 (Amendment) to the Lease, dated December 28, 2015 (Agreement), as amended by Amendment No. 1,dated December 30, 2021 (collectively, the "Lease"), by and between the Miami Beach Redevelopment Agency(RDA), a Public Body Corporate and Politic and existing under the laws of the State of Florida, having its principal place of business at 1700 Conivention Center Drive,Miami Beach,Florida 33139 (Landlord), and Cubiche 105, LLC, a Florida limited liability company, having its principal place of business at 1555 Washington Avenue, Miami Beach, Fl 33139 (Tenant), each referred to herein as a"party" and collectively the 'parties", is entered into this day of ,2024(the'Amendment No. 2 Effective Date"). RECITALS WHEREAS, on December 28, 2015, pursuant to Resolution Number 614-2015,the RDA(Landlord)and Tenant entered into a Lease for the operation of a restaurant at 1555 Washington Avenue(Premises); and WHEREAS, the Initial Lease Term is for nine(9)years and 364 days,commencing on January 15, 2016 (although there] is a scriveners error in Section 14 of the Lease summary,which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026 with two(2)five(5)year renewal options;and WHEREAS,without prejudice to either party,and Tenant being responsible for any late fees which Tenant would otherwise incur as a result of this modification, the parties wish to(1)correctimodify the term of the Lease to commence on January 2,2016,instead of January 15, 2016,and expire on December 31,2025,instead of January 13,2026;and (2) modify the definition of"Lease Year" to commence on January 18t of each year and expire on the 31'of December of each year; and WHEREAS, pursuant to Resolution No. 2021-31702, the Tenant qualified for a Minimum Rent abatement for the period of October 2020 through December 2020; and WHEREAS,on October 13,2021,the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. 661-2021, approving Amendment No.1 to the Lease, granting Tenant the following rent relief: (1) the complete abatement of Minimum Rent from January 1, 2021 to February 28, 2021 in the amount of$74,898.76. ("Abatement Period"); (2) the abatement of Minimum Rent for the period from March 1, 2021 to March 31, 2022, in the amount of $495,830.45, and the replacement of Minimum Rent with Percentage Rent equal to 10%of Gross Sales for the same period of time ("Partial Rent Abatement Period"); (3) during the Abatement Period and Partial Rent Abatement Period, Tenant continued to be obligated to pay the,,Operating Expenses, as more particularly described in Section 2.4 of the Lease; and , Page 1394 of 1445 • (4) at the end of the Partial Rent Abatement Period, the rental terms under the Lease would return to the their then current rent obligations for year six (6)at$69.56 per square foot in order to provide Tenant time to ramp up its-operations; and WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami-Dade(County, Florida, in the case styled Miami Beach Redevelopment Agency v. Cubiche j 105, LLC, Case No. 2023-025452-CA-01(the "Litigation"), seeking a commercial tenant eviction and for damages due Landlord under the Lease, in the amount of$ ,as of the inception of the Litigation; and WHEREAS, on ,,the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. , approving a Settlement Agreement of the pending Litigation,and correspondingly approving Amendment No. 2 to the Lease to incorporate the modification of the financial terms of the Lease agreed upon by the parties in the Settlement Agreement; said Amendment, in material part, modifying the Minimum Rent payments due under the Lease during the remainder of the Initial Lease Term and the two(2)Renewal Options(collectively,the"Partial Rent Abatement Period"), as more particularly set forth herein. NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Landlord and Tenant hereby agree to amend the Lease as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated herein as part of this Amendment. Unless otherwise defined herein, defined terms (as indicated by an initial capital letter)shall have the meaning ascribed to them in the Lease. 2. MODIFICATIONS. The Agreement is hereby amended (deleted items struck-through and inserted items underlined) as follows: A. Effective as of June 1,2022, Section 14(Term of Lease(Section 1.1)of the Lease Summary is hereby deleted in its entirety and replaced with the following: 14. Term of Lease(Section 1.1): The Initial Lease Term shall'commence on January 2, 2016 ("Commencement Date"), and shall end nine (9)years and three hundred and sixty four(364) days following the Commencement Date, through December 31, 2025 ("Lease Expiration Date"). The Minimum Rent payments due from Jun 1, 2022 through January 31, 2024 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(a) and the Minimum Rent payments due from February 1,2024 through December 31.2025 are hereby replaced with the modified rental payment structure set forth iii Section 2.3.1(b) "Rent Commencement Date":August 15, 2016. "Renewal Options": Following the Lease Expiration Date of the Initial Lease Term, and subject to the following terms and conditions, Tenant may exercise the following two(2)Renewal Options: 2 • Page 1395 of 1445 "First Renewal Option": The First Renewal Option, shall have a term of five (5). Lease Years, commencing on January 1, 2026 and expiring on December 31, 2030,and shall be at the mutual loption of the Tenant and Landlord,to be exercised not later than September 15. 2025, provided, if Tenant has not had any default between the Amendment No. 2 Commencement Date and December 31, 2025, the City will consent to Tenant's exercise of the First Renewal Option. The Minimum Rent payments due'during the First Renewal Option term is hereby replaced with the modified rental payment structure set forth in Section 2.3.1(c). "Second Renewal Option": The Second Renewal Option, shall have a term of five years, commencing on January 1, 2031 and expiring on December 31, 2035. Provided Tenant has not had any payment default or any other default that was not cured within the applicable cure period during the First Renewal Option period, Tenant,at Tenant's sole option!may exercise the Second Renewal Option no later than September 15, 2030. The Minimum Rent payments due during the Second Renewal Option term are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(d). B. Minimum Rent payments made by Tenant for April and May 2022 are hereby accepted by the parties as correct amounts and no portion of those payments shall be credited toward future payments due and owing under the Lease. C. Effective June 1, 2022, the following shall be inserted as a new Section 2.3.1 of the Lease. 2.3.1 Minimum Rent and Percentage Rent From and After June 1,2022. (a) From June 1. 2022 through January 31, 2024, Tenant shall pay Percentage Rent equal to ten percent (10%) of Gross Sales for each month. (b) From February 1, 2024 through December 31, 2025, Tenant shall pay rent equal to the GREATER of(i) Minimum Rent of$25.00 PSF or(ii). Percentage Rent equal to 10% of Gross Sales for each month; provided, however,that Percentage Rent shall increase to 11%of Gross Sales once the total cumulative Gross Sales for a particular Lease Year exceeds • • $1,782,500.00; and, further, that the Percentage Rent shall increase•to • 12.5%on Gross Sales once the total cumulative Gross Sales amount for a particular Lease Year exceeds $2,000,000.00. Minimum Rent shall • escalate by 3%on January 1st of each Lease Year. (c) For the First Renewal Option term (January 1, 2026 - December 31_, 2030), Tenant shall pay rent equal to the GREATER of(i) Minimum Rent of$45.00 PSF or(ii) Percentage Rent equal to 11% of Gross Sales for each month;provided, however,that Percentage Rent shall increase to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular'Lease Year exceeds $3,116,818.18. Minimum Rent during the First Renewal Option term shall escalate annually on January 1st commencing on January 1, 2027 by 3%. 3 • Page 1396 of 1445 (d) For the Second Renewal Option term(January 1,2031 —December 31, 2035), Minimum Rent shall be adiusted based upon the Fair Market Rents in effect but not lower than the Minimum Rent payment for the last Lease Year of the First Renewal Option term. Rent for the Second Renewal Option term shall be equal to the GREATER of (i) the new Minimum Rent or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however,that Percentage Rent increases to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds the amount determined by adding $500,000.00 to the natural breakpoint(as defined below). Minimum Rent during the Second ReneWal Option term shall escalate annually on January 1i commencing on January 1, 2032 by 3%. The"natural breakpoint"shall be determined for purposes of this subparagraph by dividing the annualized Minimum Rent during the first Lease Year of the Second Renewal Option term into 11%. (e) Minimum Rent payments pursuant to this Section 2.3.1 shall be paid in advance on the'1 51 of each month and Monthly Percentage Rent payments pursuant to this Section 2.3.1 shall be due in respect of each such month by the 15th day of the following month and shall include a monthly report of Gross Sales receipts, along with any a State of Florida Sales Tax Return and any additional back-up documents which the City may request. (f) The Term "Gross Sales" as used herein shall include all receipts, whether collected or ;accrued from-the Premises including, without limitation, receipts from the sale of food beverage, alcoholic beverages, merchandise, rental of space,or from any other source whatsoever. (q) All Minimum Rent and Percentage Rent payments shall include applicable sales and use tax. (h) In addition to the modified rental structure set forth in this Subsection 2.3.1, Tenant shall be required to pay all additional rent payments required under the Lease including,without limitation,Operating Expenses plus applicable sales and use tax. 3. RATIFICATION. Except as amended herein, all other terms and conditions of the Lease shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Lease, the provisions of this • Amendment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. 4 Page 1397 of 1445 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their appropriate officials, as of the date first entered above. FOR LANDLORD: THE MIAMI BEACH REDEVELOPMENT AGENCY ATTEST: By: Rafael E. Granado, Secretary; Alina T. Hudak, Executive Director Date FOR TENANT: CUBICHE 105, LLC ATTEST: By: Witness Manager Print Name Print Name Date APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Redevelopment Agoncy Date General Cal lnsel 5 Page 1398 of 1445 Exhibit"A" , SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release("Agreement")dated as of April 2024("Effective Date") is entered into by Miami Beach Redevelopment Agency (the "RDA") and Cubiche105, LLC("Cubiche")(each a"Party"and all,together,the"Parties"). WHEREAS, the Parties entered into a Lease Agreement dated December 28, 2015 for approximately 7,130 square feet of retail space located at 1555 Washington Avenue, Suites 1-3, Miami Beach,Florida 33139(the"Lease"). WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami Dade County, Florida in the case styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC,Case No.2023-025452-CA-01 seeking a commercial tenant eviction and for damages(the"Litigation"). WHEREAS, to avoid the costs and uncertainties of continued litigation, the Parties wish to enter into an Amendment No. 2 to Lease ("Amendment No. 2"), in the form attached to this Agreement as Exhibit 1, to be signed contemporaneously with this Agreement and settle the Litigation and all other claims and disputes between themselves, on the terms and conditions hereinafter set forth. NOW,THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the adequacy, sufficiency and receipt of which is hereby acknowledged,the Parties agree and represent as follows. 1. Recitals.The recitals are adopted and incorporated in this Agreement by reference. 2. Representation. This Agreement is entered into voluntarily by the Parties who stipulate and agree that they are under no duress or undue influence. The Parties represent that in the execution of this Agreement,they had the opportunity to consult legal counsel of their own selection with respect to the execution of this Agreement. 3. Lease Amendment.The parties agree to simultaneously and contemporaneously herewith execute Amendment No. 2. Cubiche agrees to make all payments due upon execution of Amendment No. 2, as provided therein, simultaneously with the execution of this Agreement and this Agreement shall not become effective unless and until such payments are made. 4. Mutual Releases. a. The RDA hereby waives and irrevocably remises, releases, acquits and forever discharges Cubiche and its affiliates, subsidiaries, agents, and attorneys from any and all claims,causes of action,demands, rights, damages,costs, losses,expenses, compensation and obligations which exist or which may hereafter accrue, whether known or unknown, whether foreseen or unforeseen, whether matured or not mature,whether discovered or undiscovered,and the consequences thereof,having resulted, resulting or to result from (i)all matters or disputes which have been or Page 1399 of 1445 could have been alleged by the RDA in the Litigation and(ii)any and all claims for attorney's fees (including paralegal fees) and costs in any way related to the Litigation. Cubiche hereby waives and irrevocably remises, releases, acquits and forever discharges the RDA, and its affiliates, subsidiaries, agents, and attorneys, including without limitation the City of Miami Beach,from any and all claims, causes of action, demands,rights,damages,costs,losses,expenses,compensation and obligations which exist or which may hereafter accrue,whether known or unknown, whether foreseen or unforeseen, whether matured or not mature, whether discovered or undiscovered, and the consequences thereof, having resulted, resulting or to result from (i) any liability arising out of the Lease , including all matters or disputes which have been or could have been alleged by Cubiche in the Litigation and(ii)any and all claims for attorney's fees(including paralegal fees)and costs in any way related to the Litigation; 5. Dismissal with Prejudice. Within five(5) business days from the latest to occur of(a)the date of execution of this Agreement, (b)the date of execution of the Lease Amendment or (c)the date Cubiche pays the RDA all amounts to be paid at the time Amendment No.2 is executed,the Parties will file a joint stipulation of dismissal with prejudice of the Litigation with each party to bear their own attorneys' fees and costs and with the court in such proceedings to reserve jurisdiction to enforce the terms of this Agreement. 6. Choice of Law and Venue. The Parties agree that this Agreement will be construed and enforced in accordance with the laws of the State of Florida. Venue for any proceeding arising out of this Agreement shall lie exclusively in the Eleventh Judicial Circuit in and for Miami Dade County, Florida. 7. Prevailing Party Fees and Costs. In any action to enforce, interpret, or seek damages for violation of this Agreement,the prevailing party shall recover its reasonable attorneys'fees and costs in connection with such efforts. 8, Waiver. No failure to enforce terms or conditions of this Agreement by any of the Parties shall constitute a waiver of any right to assert any of the terms and conditions of this Agreement. 9. Severability of Provisions. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be impaired thereby. 10. Construction. Each Party hereto has participated in the negotiation and drafting of this Agreement, and there shall not be any presumption that the provisions of this Agreement shall be construed strictly against one or the other Party hereto. 11.No Oral Modification. No term of this Agreement may be modified, amended, supplemented,or waived in any way except in a writing that is signed by the Parties. 2 Page 1400 of 1445 12.Entire Agreefnent. This Agreement, together with the Schedules, Exhibits, and releases referenced in it,constitute the final and complete statement of the agreement of the Parties on the subject matter hereof.There are no agreements, understandings, or representations relied on by the parties hereto with respect to the subject matter hereof other than those included in this Agreement. 13.Intentionally deleted. 14.Binding Nature. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, personal representatives, successors and assigns, and any corporation, partnership or other entity into or with which any Party hereto may merge, consolidate or reorganize. 15. Cooperation. Each Party hereto shall cooperate and take such actions, and execute such other documents as may reasonably be requested by another Party in order to carry out the provisions of this Agreement. 16.Authority to Execute.All signatories hereto represent and warrant that they have authority to execute this Agreement and thereby bind the party that they purport to represent, and further represent and warrant that this Agreement constitutes a valid, legal and binding agreement of each Party,and is enforceable against each such party in accordance with its terms. 17. Counterparts. This Agreement may be executed in multiple counterparts, and may be executed by facsimile, e-mail or pdf formats, and as so executed shall constitute one and the same agreement. The execution and delivery of this Agreement by either facsimile or electronic mail in PDF format shall be binding on the Party who so executes and on whose behalf the document is transmitted. 18. Captions. The captions and headings contained in this Agreement are for convenience and reference only, and shall riot be deemed to be construed as limiting or modifying in any manner the provisions of this Agreement. 19.Electronic Signature. The Parties hereby consent and agree that they may execute this Agreement and the documents contemplated to be executed in connection herewith by electronic signature, unless otherwise provided by law. IN WITNESS WHEREOF,the Parties have executed this Agreement as of the day and year indicated below each of their respective signatures. [SIGNATURE PAGES FOLLOW] 3 Page 1401 of 1445 [SIGNATURE PAGE TO SETTLEMENT AGREEMENT AND RELEASE] MIAMI BEACH REDEVLEOPMENT AGENCY By: Name: Title: Dated: CUBICHE 105, LLC • By: Name: Title: Dated: 4 Page 1402 of 1445 i Exhibit`B" AMENDMENT NO. 2 TO LEASE BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY • AND CUBICHE 105, LLC This Amendment No, 2 (Amendment) to the Lease, dated December 28, 2015 (Agreement), as amended by Amendment No. 1, dated December 30, 2021 (collectively, the "Lease"), by and between the Miami Beach Redevelopment Agency (RDA), a Public Body Corporate and Politic and existing under the laws of the State of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139 (Landlord), and Cubiche 105, LLC, a Florida limited liability company, having its principal place of business at 1555 Washington Avenue, Miami Beach, Fl 33139 (Tenant), each referred to herein as a"party" and collectively the"parties", is entered into this day of , 2024 (the"Amendment No.2 Effective Date"). RECITALS WHEREAS, on December 28, 2015, pursuant to Resolution Number 614-2015,the RDA(Landlord)and Tenant entered into a Lease for the operation of a restaurant at 1555 Washington Avenue (Premises); and WHEREAS, the Initial Lease Term is for nine(9)years and 364 days, commencing on January 15, 2016 (although there is a scriveners error in Section 14 of the Lease • summary, which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026 with two (2)five(5)year renewal options; and WHEREAS,without prejudice to either party,and Tenant being responsible for any late fees which Tenant would otherwise incur as a result of this modification, the parties wish to(1)correct/modify the term of the Lease to commence on January 2,2016, instead of January 15, 2016,and expire on December 31,2025, instead of January 13,2026; and (2) modify the definition of"Lease Year" to commence on January 1st of each year and expire on the 31st of December of each year; and WHEREAS, pursuant to Resolution No. 2021-31702, the Tenant qualified for a Minimum Rent abatement for the period of October 2020 through December 2020;.and WHEREAS,on October 13,2021,the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. 661-2021, approving Amendment No.1 to the Lease, granting Tenant the following rent relief: (1) the complete abatement of Minimum Rent from January 1, 2021 to February 28, 2021 in the amount of$74,898.76. ("Abatement Period"); (2) the abatement of Minimum Rent for the period from March 1, 2021 to March 31, 2022, in the amount of $495,830.45, and the replacement of Minimum Rent with Percentage Rent equal to 10% of Gross Sales for the same period of time ("Partial Rent Abatement Period"); (3) during the Abatement Period and Partial Rent Abatement Period, Tenant continued to be obligated to pay the Operating Expenses, as more particularly described in Section 2.4 of the Lease; and Page 1403 of 1445 (4) at the end of the Partial Rent Abatement Period, the rental terms under the Lease would return to the their then current rent obligations for year six (6) at$69.56 per square foot in order to provide Tenant time to ramp up its operations; and WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami-Dade County, Florida, in the case styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452-CA-01(the "Litigation"), seeking a commercial tenant eviction and for damages due Landlord under the Lease, in the amount of$ ,as of the inception of the Litigation; and WHEREAS, on , the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. , approving a Settlement Agreement of the pending Litigation, and correspondingly approving Amendment No. 2 to the Lease to incorporate the modification of the financial terms of the Lease agreed upon by the parties in the Settlement Agreement; said Amendment, in material part, modifying the Minimum Rent payments due under the Lease during the remainder of the Initial Lease Term and the two(2)Renewal Options(collectively,the"Partial Rent Abatement Period"), as more particularly set forth herein. NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Landlord and Tenant hereby agree to amend the Lease as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated herein as part of this Amendment. Unless otherwise defined herein, defined terms (as indicated by an initial capital letter) shall have the meaning ascribed to them in the Lease. 2. MODIFICATIONS. The Agreement is hereby amended (deleted items struck through and inserted items underlined) as follows: A. Effective as of June 1,2022, Section 14(Term of Lease(Section 1.1)of the Lease Summary is hereby deleted in its entirety and replaced with the following: 14. Term of Lease(Section 1.1): The Initial Lease Term shall commence on January 2, 2016 ("Commencement Date"), and shall end nine (9) years and three hundred and sixty four(364) days following the Commencement Date, through December 31. 2025 ("Lease Expiration Date"). The Minimum Rent payments due from Jun 1, 2022 through January 31, 2024 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(a) and the Minimum Rent payments due from February 1, 2024 through December 31, 2025 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(b) "Rent Commencement Date": August 15, 2016. • "Renewal Options": Following the Lease Expiration Date of the Initial Lease Term, and subject to the following terms and conditions, Tenant may exercise the following two(2) Renewal Options: 2 Page 1404 of 1445 "First Renewal Option": The First Renewal Option, shall have a term of five (5) Lease Years, commencing on January 1, 2026 and expiring on December 31, 2030,and shall be at the mutual option of the Tenant and Landlord,to be exercised not later than September 15, 2025, provided, if Tenant has not had any default between the Amendment No. 2 Commencement Date and December 31, 2025, the City will consent to Tenant's exercise of the First Renewal Option. The Minimum Rent payments due during the First Renewal Option term is hereby replaced with the modified rental payment structure set forth in Section 2.3.1(c). "Second Renewal Option": The Second Renewal Option, shall have a term of five years, commencing on January 1, 2031 and expiring on December 31, 2035. Provided Tenant has not had any payment default or any other default that was not cured within the applicable cure period during the First Renewal Option period, Tenant,at Tenant's sole option, may exercise the Second Renewal Option no later than September 15, 2030. The Minimum Rent payments due during the Second Renewal Option term are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(d). B. Minimum Rent payments made by Tenant for April and May 2022 are hereby accepted by the parties as correct amounts and no portion of those payments shall be credited toward future payments due and owing under the Lease. C. Effective June 1, 2022, the following shall be inserted as a new Section 2.3.1 of the Lease. 2.3.1 Minimum Rent and Percentage Rent From and After June 1, 2022. (a) From June 1, 2022 through January 31, 2024, Tenant shall pay Percentage Rent equal to ten percent (10%) of Gross Sales for each month. (b) From February 1, 2024 through December 31, 2025, Tenant shall pay rent equal to the GREATER of(i) Minimum Rent of$25.00 PSF or(ii) Percentage Rent equal to 10% of Gross Sales for each month; provided, however,that Percentage Rent shall increase to 11%of Gross Sales once the total cumulative Gross Sales for a particular Lease Year exceeds $1,782,500.00; and, further, that the Percentage Rent shall increase to 12.5%on Gross Sales once the total cumulative Gross Sales amount for a particular Lease Year exceeds $2,000,000.00. Minimum Rent shall escalate by 3%on January 1st of each Lease Year. (c) For the First Renewal Option term (January 1, 2026 — December 31, 2030), Tenant shall pay rent equal to the GREATER of (i) Minimum Rent of$45.00 PSF or(ii) Percentage Rent equal to 11% of Gross Sales for each month;provided, however,that Percentage Rent shall increase to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds $3,116,818.18. Minimum Rent during the First Renewal Option term shall escalate annually on January 1st commencing on January 1, 2027 by 3%. 3 Page 1405 of 1445 (d) For the Second Renewal Option term(January 1,2031 —December 31, 2035), Minimum Rent shall be adjusted based upon the Fair Market Rents in effect but not lower than the Minimum Rent payment for the last Lease Year of the Fist Renewal Option term. Rent for the Secorid Renewal Option term shall be equal to the GREATER of (i) the new Minimum Rent or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however, that Percentage Rent increases to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds the amount determined by adding $500,000.00 to the natural breakpoint(as defined below). Minimum Rent during the Second Renewal Option term shall escalate annually on January 1st commencing on January 1, 2032 by 3%. The"natural breakpoint"shall be determined for purposes of this subparagraph by dividing the annualized Minimum Rent during the first Lease Year of the Second Renewal Option term into 11%. (e) Minimum Rent payments pursuant to this Section 2.3.1 shall be paid in advance on the 1st of each month and Monthly.Percentage Rent payments pursuant to this Section 2.3.1 shall be due in respect of each such month by the 15th day of the following month and shall include a monthly report of Gross Sales receipts, along with any a State of Florida Sales Tax Return and any additional back-up documents which the City may request. (f) The Term "Gross Sales" as used herein shall include all receipts, whether collected or accrued from the Premises including, without limitation, receipts from the sale of food, beverage, alcoholic beverages, merchandise, rental of space, or from any other source whatsoever. (a) All Minimum Rent and Percentage Rent payments shall include applicable sales and use tax. Ih) In addition to the modified rental structure set forth in this Subsection 2.3.1, Tenant shall be required to pay all additional rent payments required under the Lease including,without limitation, Operating Expenses plus applicable sales and use tax. • 3. RATIFICATION. Except as amended herein, all other terms and conditions of the Lease shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Lease, the provisions of this Amendment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. 4 Page 1406 of 1445 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their appropriate officials, as of the date first entered above. FOR LANDLORD: THE MIAMI BEACH REDEVELOPMENT AGENCY ATTEST: By: Rafael E. Granado, Secretary Mina T. Hudak, Executive Director Date FOR TENANT: CUBICHE 105, LLC ATTEST: By: Witness Manager Print Name Print Name Date 5 Page 1407 of 1445 Exhibit"A" SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release("Agreement")dated as of April_,2024("Effective Date") is entered into by Miami Beach Redevelopment Agency (the "RDA") and Cubiche105, LLC("Cubiche")(each a"Party"and all,together, the"Parties"). WHEREAS, the Parties entered into a Lease Agreement dated December 28, 2015 for approximately 7,130 square feet of retail space located at 1555 Washington Avenue, Suites 1-3, Miami Beach, Florida 33139(the"Lease"). WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami Dade County, Florida in the case styled Miami Beach Redevelopment Agency v_ Cubiche 105,LLC,Case No.2023-025452-CA-01 seeking a commercial tenant eviction and for damages(the"Litigation"). WHEREAS, to avoid the costs and uncertainties of continued litigation, the Parties wish to enter into an Amendment No. 2 to Lease ("Amendment No. 2"), in the form attached to this Agreement as Exhibit 1, to be signed contemporaneously with this Agreement and settle the Litigation and all other claims and disputes between themselves, on the terms and conditions hereinafter set forth. NOW,THEREFORE,in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the adequacy, sufficiency and receipt of which is hereby acknowledged, the Parties agree and represent as follows. 1. Recitals.The recitals are adopted and incorporated in this Agreement by reference. 2. Representation. This Agreement is entered into voluntarily by the Parties who stipulate and agree that they are under no duress or undue influence. The Parties represent that in the execution of this Agreement,they had the opportunity to consult legal counsel of their own selection with respect to the execution of this Agreement. • 3. Lease Amendment.The parties agree to simultaneously and contemporaneously herewith execute Amendment No. 2. Cubiche agrees to make all payments due upon execution of Amendment No. 2, as provided therein, simultaneously with the execution of this Agreement and this Agreement shall not become effective unless and until such payments are made. 4. Mutual Releases. a. The RDA hereby waives and irrevocably remises, releases, acquits and forever discharges Cubiche and its affiliates, subsidiaries, agents, and attorneys from any and all claims, causes of action, demands,rights,damages,costs, losses,expenses, compensation and obligations which exist or which may hereafter accrue, whether known or unknown, whether foreseen or unforeseen, whether matured or not mature,whether discovered or undiscovered,and the consequences thereof,having resulted, resulting or to result from (i) all matters or disputes which have been or Page 1410 of 1445 could have been alleged by the RDA in the Litigation and(ii)any and all claims for attorney's fees (including paralegal fees).and costs in any way related- to the Litigation. Cubiche hereby waives and irrevocably remises, releases, acquits and forever discharges the RDA, and its affiliates, subsidiaries, agents, and attorneys, including without limitation the City of Miami Beach, from any and all claims,causes of action, demands,rights,damages,costs,losses,expenses,compensation and obligations which exist or which may hereafter accrue,whether known or unknown, whether foreseen or unforeseen, whether matured or not mature, whether discovered or undiscovered, and the consequences thereof, having resulted, resulting or to result from (i) any liability arising out of the Lease , including all matters or disputes which have been or could have been alleged by Cubiche in the Litigation and(ii)any and all claims for attorney's fees(including paralegal fees)and costs in any way related to the Litigation; 5. Dismissal with Prejudice. Within five(5)business days from the latest to occur of(a)the date of execution of this-Agreement, (b)the date of execution of the Lease Amendment or (c)the date Cubiche pays the RDA all amounts to be paid at the time Amendment No.2 is executed,the Parties will file a joint stipulation of dismissal with prejudice of the Litigation with each party to bear their own attorneys' fees and costs and with the court in such proceedings to reserve jurisdiction to enforce the terms of this Agreement. 6. Choke of Law and Venue. The Parties agree that this Agreement will be construed and enforced in accordance with the laws of the State of Florida. Venue for any proceeding arising out of this Agreement shall lie exclusively in the Eleventh Judicial Circuit in and for Miami Dade County, Florida. 7. Prevailing Party Fees and Costs. In any action to enforce, interpret, or seek damages for violation of this Agreement,the prevailing party shall recover its reasonable attorneys'fees and costs in connection with such efforts. 8. Waiver. No failure to enforce terms or conditions of this Agreement by any of the Parties shall constitute a waiver of any right to assert any of the terms and conditions of this Agreement. 9. Severability of Provisions. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be impaired thereby. 10. Construction. Each Party hereto has participated in the negotiation and drafting of this Agreement, and there shall not be any presumption that the provisions of this Agreement shall be construed strictly against one or the other Party hereto. 11.No Oral Modification. No term of this Agreement may be modified, amended, supplemented, or waived in any way except in a writing that is signed by the Parties. 2 Page 1411 of 1445 12.Entire Agreement. This Agreement, together with the Schedules, Exhibits, and releases referenced in it, constitute the final and complete statement of the agreement of the Parties on the subject matter hereof. There are no agreements, understandings, or representations relied on by the parties hereto with respect to the subject matter hereof other than those included in this Agreement. 13.Intentionally deleted. 14.Binding Nature. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, personal representatives, successors and assigns, and any corporation, partnership or other entity into or with which any Party hereto may merge, consolidate or reorganize. 15. Cooperation. Each Party hereto shall cooperate and take such actions, and execute such other documents as may reasonably be requested by another Party in order to carry out the provisions of this Agreement. 16.Authority to Execute. All signatories hereto represent and warrant that they have authority to execute this Agreement and thereby bind the party that they purport to represent, and further represent and warrant that this Agreement constitutes a valid, legal and binding agreement of each Party,and is enforceable against each such party in accordance with its terms. 17. Counterparts. This Agreement may be executed in multiple counterparts, and may be executed by facsimile, e-mail or pdf formats, and as so executed shall constitute one and the same agreement. The execution and delivery of this Agreement by either facsimile or electronic mail in PDF format shall be binding on the Party who so executes and on whose behalf the document is transmitted. 18. Captions.The captions and headings contained in this Agreement are for convenience and reference only, and shall not be deemed to be construed as limiting or modifying in any manner the provisions of this Agreement. 19.Electronic Signature. The Parties hereby consent and agree that they may execute this Agreement and the documents contemplated to be executed in connection herewith by electronic signature, unless otherwise provided by law. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year indicated below each of their respective signatures. [SIGNATURE PAGES FOLLOW] 3 Page 1412 of 1445 [SIGNATURE PAGE TO SETTLEMENT AGREEMENT AND RELEASE] MIAMI BEACH REDEVLEOPMENT AGENCY Alina T. Hudak, City Manager Executive Director of the MBRA • Dated: APPROVED AS TO FORM& LANGUAGE ATTEST: & FOR EXECUTION 3 --zc�z4 Redevelopment Agency Date General Counsel Nti. Rafael E. Granado, Secretary CUBICHE 105, LLC By: Name: Title: • Dated: 4 Page 1413 of 1445 Exhibit"B" AMENDMENT NO. 2 TO LEASE BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY • AND CUBICHE 105, LLC This Amendment No. 2 (Amendment) to the Lease, dated December 28, 2015 (Agreement), as amended by Amendment No. 1, dated December 30, 2021 (collectively, the "Lease"), by and between the Miami Beach Redevelopment Agency (RDA), a Public Body Corporate and Politic and existing under the laws of the State of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139 (Landlord), and Cubiche 105, LLC, a Florida limited liability company, having its principal place of business at 1555 Washington Avenue, Miami Beach, Fl 33139 (Tenant), each referred to herein as a "party' and collectively the"parties", is entered into this day of , 2024(the"Amendment No. 2 Effective Date"). RECITALS WHEREAS, on December 28, 2015, pursuant to Resolution Number 614-2015, the RDA(Landlord)and Tenant entered into a Lease for the operation of a restaurant at 1555 Washington Avenue(Premises); and WHEREAS, the Initial Lease Term is for nine (9)years and 364 days, commencing on January 15, 2016 (although there is a scriveners error in Section 14 of the Lease summary, which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026 with two(2)five (5)year renewal options; and WHEREAS,without prejudice to either party,and Tenant being responsible for any late fees which Tenant would otherwise incur as a result of this modification, the parties wish to(1)correct/modify the term of the Lease to commence on January 2,2016, instead of January 15, 2016, and expire on December 31,2025, instead of January 13, 2026; and (2) modify the definition of"Lease Year" to commence on January 1s of each year and expire on the 31st of December of each year; and WHEREAS, pursuant to Resolution No. 2021-31702, the Tenant qualified for a • Minimum Rent abatement for the period of October 2020 through December 2020; and WHEREAS,on October 13, 2021,the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. 661-2021, approving Amendment No.1 to the Lease, granting Tenant the following rent relief: (1) the complete abatement of Minimum Rent from January 1, 2021 to February 28, 2021 in the amount of$74,898.76. ("Abatement Period"); (2) the abatement of Minimum Rent for the period from March 1, 2021 to March 31, 2022, in the amount of $495,830.45, and the replacement of Minimum Rent with Percentage Rent equal to 10%of Gross Sales for the same period of time ("Partial Rent Abatement Period"); (3) during the Abatement Period and Partial Rent Abatement Period, Tenant continued to be obligated to pay the Operating Expenses, as more particularly described in Section 2.4 of the Lease; and t Page 1414 of 1445 (4) at the end of the Partial Rent Abatement Period, the rental terms under the Lease would return to the their then current rent obligations for year six (6) at $69.56 per square foot in order to provide Tenant time to ramp up its operations; and WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami-Dade County, Florida, in the case styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452-CA-01(the "Litigation"), seeking a commercial tenant eviction and for damages due Landlord under the Lease, in the amount of$ , as of the inception of the Litigation; and WHEREAS, on , the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. , approving a Settlement Agreement of the pending Litigation, and correspondingly approving Amendment No. 2 to the Lease to incorporate the modification of the financial terms of the Lease agreed upon by the parties in the Settlement Agreement; said Amendment, in material part, modifying the Minimum Rent payments due under the Lease during the remainder of the Initial Lease Term and the two(2) Renewal Options(collectively,the"Partial Rent Abatement Period"), as more particularly set forth herein. NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Landlord and Tenant hereby agree to amend the Lease as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated herein as part of this Amendment. Unless otherwise defined herein, defined terms (as indicated by an initial capital letter)shall have the meaning ascribed to them in the Lease. 2. MODIFICATIONS. The Agreement is hereby amended (deleted items struck through and inserted items underlined) as follows: A. Effective as of June 1, 2022, Section 14(Term of Lease(Section 1.1)of the Lease Summary is hereby deleted in its entirety and replaced with the following: 14. Term of Lease(Section 1.1): The Initial Lease Term shall commence on January 2, 2016 ("Commencement Date"). and shall end nine (9)years and three hundred and sixty four(364) days following the Commencement Date, through December 31, 2025 ("Lease Expiration Date"). The Minimum Rent payments due from Jun 1, 2022 through January 31, 2024 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(a) and the Minimum Rent payments due from February 1, 2024 through December 31, 2025 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(b) "Rent Commencement Date": August 15, 2016. "Renewal Options": Following the Lease Expiration Date of the Initial Lease Term, and subject to the following terms and conditions, Tenant may exercise the following two(2) Renewal Options: 2 Page 1415 of 1445 "First Renewal Option": The First Renewal Option, shall have a term of five (5) Lease Years, commencing on January 1, 2026 and expiring on December 31 2030;-and-shall be atthe mutual option of the Tenant and_Landlord,to be exercised not later than September 15, 2025, provided, if Tenant has not had any default between the Amendment No. 2 Commencement Date and December 31, 2025, the City will consent to Tenant's exercise of the First Renewal Option. The Minimum Rent payments due during the First Renewal Option term is hereby replaced with the modified rental payment structure set forth in Section 2.3.1(c). "Second Renewal Option": The Second Renewal Option, shall have a term of five years, commencing on January 1, 2031 and expiring on December 31, 2035. Provided Tenant has not had any payment default or any other default that was not cured within the applicable cure period during the First Renewal Option period, Tenant,at Tenant's sole option, may exercise the Second Renewal Option no later than September 15, 2030. The Minimum Rent payments due during the Second Renewal Option term are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(d). B. Minimum Rent payments made by Tenant for April and May 2022 are hereby accepted by the parties as correct amounts and no portion of those payments shall be credited toward future payments due and owing under the Lease. C. Effective June 1, 2022, the following shall be inserted as a new Section 2.3.1 of the Lease. 2.3.1 Minimum Rent and Percentage Rent From and After June 1, 2022. • (a) From June 1, 2022 through January 31, 2024, Tenant shall pay Percentage Rent equal to ten percent (10%) of Gross Sales for each month. (b) From February 1, 2024 through December 31, 2025, Tenant shall pay rent equal to the GREATER of(i) Minimum Rent of$25.00 PSF or(ii) Percentage Rent equal to 10% of Gross Sales for each month; provided, however,that Percentage Rent shall increase to 11%of Gross Sales once the total cumulative Gross Sales for a particular Lease Year exceeds $1,782,500.00; and, further, that the Percentage Rent shall increase to 12.5%on Gross Sales once the total cumulative Gross Sales amount for a particular Lease Year exceeds $2,000,000.00. Minimum Rent shall escalate by 3% on January 1st of each Lease Year. (c) For the First Renewal Option term (January 1, 2026 — December 31, 2030), Tenant shall pay rent equal to the GREATER of (i) Minimum Rent of$45.00 PSF or(ii) Percentage Rent equal to 11% of Gross Sales for each month;provided, however,that Percentage Rent shall increase to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds $3,116,818.18. Minimum Rent during the First Renewal Option term shall escalate annually on January 1st commencing on January 1, 2027 by 3%. 3 Page 1416 of 1445 (d) For the Second Renewal Option term(January 1,2031 —December 31, 2035), Minimum Rent shall be adjusted based upon the Fair Market Rents in effect but not lower than the Minimum Rent payment for the last - Lease Year of-the First Renewal Option term. Rent for the Second Renewal Option term shall be equal to the GREATER of (i) the new Minimum Rent or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however,that Percentage Rent increases to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds the amount determined by adding $500,000.00 to the natural breakpoint (as defined below). Minimum Rent during the Second Renewal Option term shall escalate annually on January 1st commencing on January 1, 2032 by 3%. The"natural breakpoint"shall be determined for purposes of this subparagraph by dividing the annualized Minimum Rent during the first Lease Year of the Second Renewal Option term into 11%. (e) Minimum Rent payments pursuant to this Section 2.3.1 shall be paid in advance on the 1st of each month and Monthly Percentage Rent payments pursuant to this Section 2.3.1 shall be due in respect of each such month by the 15th day of the following month and shall include a monthly report of Gross Sales receipts, along with any a State of Florida Sales Tax Return and any additional back-up documents which the City may request. (f) The Term "Gross Sales" as used herein shall include all receipts, whether collected or accrued from the Premises including, without limitation, receipts from the sale of food, beverage, alcoholic beverages, merchandise, rental of space,or from any other source whatsoever. (q) All Minimum Rent and Percentage Rent payments shall include applicable sales and use tax. (h) In addition to the modified rental structure set forth in this Subsection 2.3.1, Tenant shall be required to pay all additional rent payments required under the Lease including,without limitation, Operating • Expenses plus applicable sales and use tax. 3. RATIFICATION. Except as amended herein, all other terms and conditions of the Lease shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Lease, the provisions of this Amendment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. 4 Page 1417 of 1445 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their appropriate officials, as of the date first entered above. FOR LANDLORD: - THE MIAMI BEACH REDEVELOPMENT AGENCY ATTEST: By: Rafael E. Granado, Secretary Alina T. Hudak, Executive Director Date FOR TENANT: CUBICHE 105, LLC ATTEST: • By: Witness Manager Print Name Print Name Date APPROVED AS TO FORM& LANGUAGE & FOR EXECUTION Redevelopment Agency Date Genera:Counsel V L 5 Page 1418 of 1445 Exhibit"A" SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release("Agreement")dated as of April ,2024("Effective Date")-is entered into-by Miami Beach-Redevelopment Agency (the "RDA") and CubicheI05, LLC ("Cubiche") (each a"Party"and all, together, the"Parties"). WHEREAS, the Parties entered into a Lease Agreement dated December 28, 2015 for approximately 7,130 square feet of retail space located at 1555 Washington Avenue, Suites 1-3, Miami Beach, Florida 33139 (the"Lease"). WHEREAS, the City has filed a complaint in the Circuit Court for the Eleventh Judicial Circuit in and for Miami Dade County, Florida in the case styled Miami Beach Redevelopment Agency v. Cubiche 105,LLC,Case No.2023-025452-CA-0l seeking a commercial tenant eviction and for damages (the "Litigation"). WHEREAS, to avoid the costs and uncertainties of continued litigation, the Parties wish to enter into an Amendment No. 2 to Lease ("Amendment No. 2"), in the form attached to this Agreement as Exhibit 1, to be signed contemporaneously with this Agreement and settle the Litigation and all other claims and disputes between themselves, on the terms and conditions hereinafter set forth. NOW,THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the adequacy, sufficiency and receipt of which is hereby acknowledged, the Parties agree and represent as follows. 1. Recitals. The recitals are adopted and incorporated in this Agreement by reference. 2. Representation. This Agreement is entered into voluntarily by the Parties who stipulate and agree that they are under no duress or undue influence. The Parties represent that in the execution of this Agreement, they had the opportunity to consult legal counsel of their own selection with respect to the execution of this Agreement. 3. Lease Amendment. The parties agree to simultaneously and contemporaneously herewith execute Amendment No. 2. Cubiche agrees to make all payments due upon execution of Amendment No. 2, as provided therein, simultaneously with the execution of this Agreement and this Agreement shall not become effective unless and until such payments are made. 4. Mutual Releases. a. The RDA hereby waives and irrevocably remises, releases, acquits and forever discharges Cubiche and its affiliates, subsidiaries, agents, and attorneys from any and all claims, causes of action, demands, rights, damages, costs, losses, expenses, compensation and obligations which exist or which may hereafter accrue, whether known or unknown, whether foreseen or unforeseen, whether matured or not mature,whether discovered or undiscovered,and the consequences thereof, having resulted, resulting or to result from (i) all matters or disputes which have been or Page 1419 of 1445 could have been alleged by the RDA in the Litigation and(ii)any and all claims for attorney's fees (including paralegal fees) and costs in any way related to the Litigation. Cubiche hereby waives and irrevocably remises, releases, acquits and forever discharges the RDA, and its affiliates, subsidiaries, agents, and attorneys, including without limitation the City of Miami Beach, from any and all claims, causes of action, demands,rights,damages,costs,losses,expenses,compensation and obligations which exist or which may hereafter accrue, whether known or unknown, whether foreseen or unforeseen, whether matured or not mature, whether discovered or undiscovered, and the consequences thereof, having resulted, resulting or to result from (i) any liability arising out of the Lease , including all matters or disputes which have been or could have been alleged by Cubiche in the Litigation and(ii)any and all claims for attorney's fees (including paralegal fees) and costs in any way related to the Litigation; 5. Dismissal with Prejudice. Within five (5) business days from the latest to occur of(a) the date of execution of this Agreement, (b) the date of execution of the Lease Amendment or (c)the date Cubiche pays the RDA all amounts to be paid at the time Amendment No. 2 is executed,the Parties will file a joint stipulation of dismissal with prejudice of the Litigation with each party to bear their own attorneys' fees and costs and with the court in such proceedings to reserve jurisdiction to enforce the terms of this Agreement. 6. Choice of Law and Venue. The Parties agree that this Agreement will be construed and enforced in accordance with the laws of the State of Florida. Venue for any proceeding arising out of this Agreement shall lie exclusively in the Eleventh Judicial Circuit in and for Miami Dade County, Florida. 7. Prevailing Party Fees and Costs. In any action to enforce, interpret, or seek damages for violation of this Agreement,the prevailing party shall recover its reasonable attorneys'fees and costs in connection with such efforts. 8. Waiver. No failure to enforce terms or conditions of this Agreement by any of the Parties shall constitute a waiver of any right to assert any of the terms and conditions of this Agreement. 9. Severability of Provisions. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be impaired thereby. 10. Construction. Each Party hereto has participated in the negotiation and drafting of this Agreement, and there shall not be any presumption that the provisions of this Agreement shall be construed strictly against one or the other Party hereto. 11. No Oral Modification. No term of this Agreement may be modified, amended, supplemented, or waived in any way except in a writing that is signed by the Parties. 2 Page 1420 of 1445 12.Entire Agreement This Agreement, together with the Schedules, Exhibits, and releases referenced in it, constitute the final-and cornplete statement of the agreement of the Parties on the subject matter hereof. There are no agreements, understandings, or representations relied on by the parties hereto with respect to the subject matter hereof other than those included in this Agreement. 13.Intentionally deletet 14.Binding Nature. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, personal representatives, successors and assigns, and any corporation, partnership or other entity into or with which any Party hereto may merge, consolidate or reorganize. 15. Cooperation. Each Party hereto shall cooperate and take such actions, and execute such other documents as may reasonably be requested by another Party in order to carry out the provisions of this Agreement. 16.Authority to Execute. All signatories hereto represent and warrant that they have authority to execute this Agreement and thereby bind the party that they purport to represent, and further represent and warrant that this Agreement constitutes a valid, legal and binding agreement of each Party, and is enforceable against each such party in accordance with its terms. 17. Counterparts. This Agreement may be executed in multiple counterparts, and may be executed by facsimile, e-mail or pdf formats, and as so executed shall constitute one and the same agreement. The execution and delivery of this Agreement by either facsimile or electronic mail in PDF format shall be binding on the Party who so executes and on whose behalf the document is transmitted. 18. Captions. The captions and headings contained in this Agreement are for convenience and reference only, and shall not be deemed to be construed as limiting or modifying in any manner the provisions of this Agreement. 19.Electronic Signature. The Parties hereby consent and agree that they may execute this Agreement and the documents contemplated to be executed in connection herewith by electronic signature, unless otherwise provided by law. IN WITNESS WHEREOF,the Parties have executed this Agreement as of the day and year indicated below each of their respective signatures. [SIGNATURE PAGES FOLLOW] 3 Page 1421 of 1445 [SIGNATURE PAGE TO SETTLEMENT AGREEMENT AND RELEASE] MIAMI BEACH REDEVLEOPMENT AGENCY By: Name: Title: Dated: CUBICHE 105, LLC By: Name: Title: Dated: 4 Page 1422 of 1445 Exhibit"B" AMENDMENT NO. 2 TO LEASE BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY AND CUBICHE 105, LLC This Amendment No. 2 (Amendment) to the Lease, dated December 28, 2015 (Agreement), as amended by Amendment No. 1, dated December 30, 2021 (collectively, the "Lease"), by and between the Miami Beach Redevelopment Agency (RDA), a Public Body Corporate and Politic and existing under the laws of the State of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139 (Landlord), and Cubiche 105, LLC, a Florida limited liability company, having its principal place of business at 1555 Washington Avenue, Miami Beach, Fl 33139 (Tenant), each referred to herein as a "party" and collectively the "parties", is entered into this day of , 2024 (the "Amendment No. 2 Effective Date"). RECITALS WHEREAS, on December 28, 2015, pursuant to Resolution Number 614-2015, the RDA(Landlord)and Tenant entered into a Lease for the operation of a restaurant at 1555 Washington Avenue (Premises); and WHEREAS, the Initial Lease Term is for nine (9) years and 364 days, commencing on January 15, 2016 (although there is a scriveners error in Section 14 of the Lease summary, which reflects that the Lease commences on January 15, 2015), and expiring on January 13, 2026 with two (2)five (5)year renewal options; and WHEREAS,without prejudice to either party,and Tenant being responsible for any late fees which Tenant would otherwise incur as a result of this modification, the parties wish to (1) correct/modify the term of the Lease to commence on January 2, 2016, instead of January 15, 2016, and expire on December 31, 2025, instead of January 13, 2026; and (2) modify the definition of"Lease Year" to commence on January 1st of each year and expire on the 31st of December of each year; and WHEREAS, pursuant to Resolution No. 2021-31702, the Tenant qualified for a Minimum Rent abatement for the period of October 2020 through December 2020; and WHEREAS, on October 13, 2021,the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. 661-2021, approving Amendment No.1 to the Lease, granting Tenant the following rent relief: (1) the complete abatement of Minimum Rent from January 1, 2021 to February 28, 2021 in the amount of$74,898.76. ("Abatement Period"); (2) the abatement of Minimum Rent for the period from March 1, 2021 to March 31, 2022, in the amount of $495,830.45, and the replacement of Minimum Rent with Percentage Rent equal to 10% of Gross Sales for the same period of time ("Partial Rent Abatement Period"); (3) during the Abatement Period and Partial Rent Abatement Period, Tenant continued to be obligated to pay the Operating Expenses, as more particularly described in Section 2.4 of the Lease; and Page 1423 of 1445 (4) at the end of the Partial Rent Abatement Period, the rental terms under the Lease would return to the their then current rent obligations for year six (6) at$69.56 per square foot in order to provide Tenant time to ramp up its operations; and WHEREAS-; the-City has filed a complaint in the-Circuit Court for the Eleventh Judicial Circuit in and for Miami-Dade County, Florida, in the case styled Miami Beach Redevelopment Agency v. Cubiche 105, LLC, Case No. 2023-025452-CA-01(the "Litigation"), seeking a commercial tenant eviction and for damages due Landlord under the Lease, in the amount of$ , as of the inception of the Litigation; and WHEREAS, on , the Chairman and Members of the Miami Beach Redevelopment Agency adopted Resolution No. , approving a Settlement Agreement of the pending Litigation, and correspondingly approving Amendment No. 2 to the Lease to incorporate the modification of the financial terms of the Lease agreed upon by the parties in the Settlement Agreement; said Amendment, in material part, modifying the Minimum Rent payments due under the Lease during the remainder of the Initial Lease Term and the two (2) Renewal Options (collectively, the"Partial Rent Abatement Period"), as more particularly set forth herein. NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Landlord and Tenant hereby agree to amend the Lease as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated herein as part of this Amendment. Unless otherwise defined herein, defined terms (as indicated by an initial capital letter)shall have the meaning ascribed to them in the Lease. 2. MODIFICATIONS. The Agreement is hereby amended (deleted items and inserted items underlined) as follows: A. Effective as of June 1, 2022, Section 14 (Term of Lease (Section 1.1)of the Lease Summary is hereby deleted in its entirety and replaced with the following: 14. Term of Lease (Section 1.1): The Initial Lease Term shall commence on January 2, 2016 ("Commencement Date"), and shall end nine (9) years and three hundred and sixty four (364) days following the Commencement Date, through December 31, 2025 ("Lease Expiration Date"). The Minimum Rent payments due from Jun 1, 2022 through January 31, 2024 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(a) and the Minimum Rent payments due from February 1, 2024 through December 31, 2025 are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(b) "Rent Commencement Date": August 15, 2016. "Renewal Options": Following the Lease Expiration Date of the Initial Lease Term, and subiect to the following terms and conditions, Tenant may exercise the following two (2) Renewal Options: 2 Page 1424 of 1445 "First Renewal Option": The First Renewal Option, shall have a term of five (5) Lease Years, commencing on January 1, 2026 and expiring on December 31, 2030,and shall be at the mutual option of the Tenant and Landlord,to be exercised not later than-September 15, 2025;-provided; if Tenant has not had any default between the Amendment No. 2 Commencement Date and December 31, 2025, the City will consent to Tenant's exercise of the First Renewal Option. The Minimum Rent payments due during the First Renewal Option term is hereby replaced with the modified rental payment structure set forth in Section 2.3.1(c). "Second Renewal Option": The Second Renewal Option, shall have a term of five years, commencing on January 1, 2031 and expiring on December 31, 2035. Provided Tenant has not had any payment default or any other default that was not cured within the applicable cure period during the First Renewal Option period, Tenant, at Tenant's sole option, may exercise the Second Renewal Option no later than September 15, 2030. The Minimum Rent payments due during the Second Renewal Option term are hereby replaced with the modified rental payment structure set forth in Section 2.3.1(d). B. Minimum Rent payments made by Tenant for April and May 2022 are hereby accepted by the parties as correct amounts and no portion of those payments shall be credited toward future payments due and owing under the Lease. C. Effective June 1, 2022, the following shall be inserted as a new Section 2.3.1 of the Lease. 2.3.1 Minimum Rent and Percentage Rent From and After June 1, 2022. (a) From June 1, 2022 through January 31, 2024, Tenant shall pay Percentage Rent equal to ten percent (10%) of Gross Sales for each month. (b) From February 1, 2024 through December 31, 2025, Tenant shall pay rent equal to the GREATER of(i) Minimum Rent of$25.00 PSF or(ii) Percentage Rent equal to 10% of Gross Sales for each month; provided, however, that Percentage Rent shall increase to 11% of Gross Sales once the total cumulative Gross Sales for a particular Lease Year exceeds $1,782,500.00; and, further, that the Percentage Rent shall increase to 12.5% on Gross Sales once the total cumulative Gross Sales amount for a particular Lease Year exceeds $2,000,000.00. Minimum Rent shall escalate by 3% on January 1st of each Lease Year. (c) For the First Renewal Option term (January 1, 2026 — December 31, 2030), Tenant shall pay rent equal to the GREATER of (i) Minimum Rent of$45.00 PSF or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however,that Percentage Rent shall increase to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds $3,116,818.18. Minimum Rent during the First Renewal Option term shall escalate annually on January 1st commencing on January 1, 2027 by 3%. 3 Page 1425 of 1445 (d) For the Second Renewal Option term(January 1,2031 —December 31, 2035), Minimum Rent shall be adjusted based upon the Fair Market • Rents in effect but not lower than the Minimum Rent payment for the last Lease Year of the First Renewal Option term. Rent for the Second Renewal- Option-term shall be equal to- the GREATER- of (i) the new Minimum Rent or (ii) Percentage Rent equal to 11% of Gross Sales for each month; provided, however, that Percentage Rent increases to 12.5% of Gross Sales for each month once the total cumulative Gross Sales for a particular Lease Year exceeds the amount determined by adding $500,000.00 to the natural breakpoint (as defined below). Minimum Rent during the Second Renewal Option term shall escalate annually on January 1st commencing on January 1, 2032 by 3%. The"natural breakpoint" shall be determined for purposes of this subparagraph by dividing the annualized Minimum Rent during the first Lease Year of the Second Renewal Option term into 11%. (e) Minimum Rent payments pursuant to this Section 2.3.1 shall be paid in advance on the 1st of each month and Monthly Percentage Rent payments pursuant to this Section 2.3.1 shall be due in respect of each such month by the 15th day of the following month and shall include a monthly report of Gross Sales receipts, along with any a State of Florida Sales Tax Return and any additional back-up documents which the City may request. (f) The Term "Gross Sales" as used herein shall include all receipts, whether collected or accrued from the Premises including, without limitation, receipts from the sale of food, beverage, alcoholic beverages, merchandise, rental of space, or from any other source whatsoever. (q) All Minimum Rent and Percentage Rent payments shall include applicable sales and use tax. (h) In addition to the modified rental structure set forth in this Subsection 2.3.1, Tenant shall be required to pay all additional rent payments required under the Lease including, without limitation, Operating Expenses plus applicable sales and use tax. 3. RATIFICATION. Except as amended herein, all other terms and conditions of the Lease shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Lease, the provisions of this Amendment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. 4 Page 1426 of 1445 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their appropriate officials, as of the date first entered above. FOR LANDLORD: THE MIAMI BEACH REDEVELOPMENT AGENCY ATTEST: By: Rafael E. Granado, Secretary Alina T. Hudak, Executive Director Date FOR TENANT: CUBICHE 105, LLC ATTEST: By: Witness Manager Print Name Print Name Date 5 Page 1427 of 1445