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HomeMy WebLinkAboutPalm Court at 23rd Street LTD Lease Agreement ?ocC:., - :< 001 c1 _J C:/'7je, y - c.,' 7 S LEASE AGREEMENT THIS LEASE AGREEMENT, made this 7-1/.. day of VUN'G ,2006, by and between PALM COURT AT 23RD STREET, LTD., (hereinafter referred to as "Landlord"), and the CITY OF MIAMI BEACH, a Florida municipal corporation, (hereinafter referred to as "City" or "Tenant"). 1 . Demised Premises. Landlord, in consideration of the rentals hereinafter reserved to be paid and of the covenants, conditions and agreements to be kept and performed by the Tenant, hereby leases, lets and demises to the Tenant, and Tenant hereby leases and hires from the Landlord, in Landlord's building known as Palm Court located at 309 23rd Street, Miami Beach, Florida, 33139 (the "Building"), those certain premises referred to as Suite 170 (on the first/ground floor) and Suite 210 (on the second floor), respectively, and more fully described as follows: 309 23rd Street: encompassing approximately one thousand two hundred (1,200) leasable square feet on the ground floor (the "First Floor Leased Premises"), and approximately five thousand seven hundred (5,700) leasable square feet on the second floor (the "Second Floor Leased Premises"), for an approximate total of six thousand nine hundred (6,900) leasable square foot area, based on BOMA measurement standards. . Such space on the ground floor is specified in the areas cross hatched in "Exhibit A", which is hereby made a part of this Lease Agreement. Such space on the second floor is specified in the area cross hatched in "Exhibit B", which is hereby made a part of this Lease Agreement, (both spaces shall collectively and hereinafter be referred to as the "Leased Premises" or "Demised Premises"). 2. Term. 2.1 The Tenant shall be entitled to have and to hold the Demised Premises for an initial term of two (2) years, commencing on the 1 st day of AUQust, 2006 (the "Commencement Date"), and ending on the 31st day of ~ , 2008 (the "Termination Date"). 2.2 The Tenant shall have an option, at its sole discretion, to extend the Lease term for an additional one (1) year term, upon the terms and conditions provided herein. In order to exercise the option, Tenant must furnish written notice to Landlord of its intention to exercise the extension no later than 180 days prior to the Termination Date set forth in subsection 2.1. Tenant's failure to timely furnish such written notice shall be deemed to relieve the Landlord of any obligation to provide such renewal option to Tenant. There 1 shall be a five (5) calendar day grace period for the receipt of such notice. Notice shall be made via certified mail or overnight courier service to the Landlord's place of business, as set forth in Section 27 of the Agreement. 2.3 In the event of any damage to the Premises as a result of Tenant's use, Tenant agrees that it shall continue to be liable for all repairs or damages which may be suffered by Landlord as a result of Tenant's use of the Leased Premises or Building. 3. Rent. 3.1 Base Rent: Base Rent (which Rent shall also include Tenant's proportionate share of Operating Expenses, as defined in subsection 3.2.1, for the initial term ofthe Lease) shall commence on August 1, 2006 (the "Rent Commencement Date"). Other than the first Rent payment (which payment shall include Rent from the Commencement Date through October 31,2006), Tenant agrees that it shall thereafter make Rent payments quarterly on the first day of each of the following months throughout the term herein: November, February, May, and August. In connection with the first rental payment, Tenant agrees that if the Rent Commencement Date is a date other than the first day of the month, it shall prorate the Rent for that portion of the month and pay same as an addition to the regularly scheduled quarterly payment. 3.1.1 The initial Base Rent for the Demised Premises (which shall be for the Second Floor Leased Premises only) shall be Forty Four Thousand One Hundred and Seventy Five Dollars ($44,175) per quarter, plus such prorated amounts due as set forth in subsection 3.1 taking into account the fractional portion of the first month of occupancy of the Demised Premises by Tenant. 3.1.2 Upon occupancy by Tenant of the First Floor Leased Premises (which is estimated to be on or about October 1, 2006, but shall be further subject to the provisions of Section 8), Tenant shall commence to pay the increased quarterly Base Rent of Fifty Three Thousand Four Hundred and Seventy Five Dollars ($53,475). In the event that Tenant's occupancy of the First Floor Leased Premises and Tenant's obligations to pay Rent for same, fall on a day other than the beginning of the subsequent quarterly Rent payment period as prescribed in subsection 3.1.1 above, Tenant shall pay to Landlord the prorated amount of Rent due on a per diem basis through the next regularly scheduled quarterly Rent period, and Tenant's obligation to pay same shall commence the sooner of (i) the date Tenant takes possession of the First Floor Leased Premises, or (ii) the date on which Landlord secures a Certificate of Occupancy (CO) for the First Floor Leased 2 Premises. For purposes of this Lease, the per diem rent for the First Floor Leased Premises shall be One Hundred and One Dollars and 92/00 ($101.92). 3.1.3 In the event that the option for the third Lease year is exercised, the Base Rent shall, upon commencement of the third Lease year (which for purposes of this Lease shall be deemed to be August 1, 2008), be increased by the lesser of i) the increase in the CPI for the preceding twelve (12) month period (i.e. August 2007 through July 2008), or ii) four (4%) percent. 3.1.4 Late Charoe: Intentionally Omitted. 3.2 Additional Rent: 3.2.1 Operatino Expenses: "Operating Expenses" shall mean the total cost and expenses, including property taxes and insurance, (except as provided in Subsections 3.2.2 and 3.2.3) incurred by Landlord in operating, repairing, and maintaining the Common Facilities (hereinafter defined) actually used or available for use by the Tenant and its employees, agents, servants, customers and invitees. "Common Facilities" shall mean all areas, space, equipment and special services, including without limitation, water service to the Building, sewer service to the Building, trash removal from the building, costs incurred for gardening and landscaping, repairing and maintaining elevator(s), painting, basic janitorial services, lighting, cleaning, striping, policing, removing garbage and other refuse and trash, repairing and maintaining sprinkler systems, water pipes, air-conditioning systems, temperature control systems, and security systems, fire alarm repair and maintenance and other equipment in the Building common areas and the exterior and structural portions of the Building, paving and repairing, management fees and the Landlord's employment expenses to employees furnishing and rendering any services to the common areas provided by the Landlord for the common or joint use and/or benefit of Tenant, and its employees, agents, servants, customers and invitees. With the exception of real estate taxes and insurance, as outlined in subsections 3.2.2 and 3.2.3 below, the Base Rent amounts in subsections 3.1.1 and 3.1.2 shall include Tenant's proportionate share of Operating Expenses for the initial term. Thereafter, in the event that the option for the third Lease year is exercised, in 3 addition to the Base Rent increase in subsection 3.1.3, Tenant shall pay its proportionate share of increases in Operating Expenses for the third Lease year. The Tenant's proportionate share is deemed to be twenty three (23%) percent. 3.2.2 Property Taxes: Landlord agrees that in connection with any increase in the real estate tax portion of the Operating Expenses after the first Lease year, there will be no pass-through to Tenant for the first fifty (50%) percent increase in the Building's real estate taxes (if any). However, if the real estate taxes increase by more than 50% from the prior Lease year, Tenant acknowledges that, commencing in the second Lease year, it shall pay its proportionate share of such increase beyond such 50% figure. This shall also apply to the option term (if exercised by Tenant). Insurance: Landlord agrees that in connection with any increase in the insurance portion of the Operating Expenses after the first Lease year, there will be no pass-through to Tenant for the first one hundred (100%) percent increase in the Building's property insurance (if any). However, if the insurance increases by more than 100% from the prior Lease year, Tenant acknowledges that it shall pay its proportionate share of such increase beyond such 100% figure. Additionally, there will be no pass-through to Tenant for the first 50% increase in the Building's liability insurance (if any). However, if the liability insurance increases by more than 50% from the prior Lease year, the Tenant acknowledges that it shall pay it proportionate share of such increase beyond such 50% figure. This shall apply to the option term (if exercised by Tenant). 3.3 Tenant Electrical Costs: It is expressly understood and agreed that Tenant shall be directly responsible for all electrical uses and charges for any electrical use within the Leased Premises. Landlord represents that in connection with the Second Floor Leased Premises, all electrical service is fully operational and all electrical charges are currently in the name of Landlord. The Second Floor Leased Premises has three (3) separate accounts with Florida Power and Light Company (FPL) all of which exclusively serve said Leased Premises. Tenant agrees that within ten (10) days of execution of the Lease it shall have all FPL accounts in connection with the Second Floor Leased Premises assigned to Tenant. Tenant shall only be responsible for electrical incurred costs as of the Effective Date of the Lease. Tenant shall, however, be responsible for the reimbursement to Landlord for any prepaid FPL charges which may accrue as a result of the Lease Effective Date falling on a date 4 which is in the middle of one or more FPL invoice pay cycles for the consumption within the Leased Premises. In connection with the First Floor Leased Premises, Tenant further agrees it shall be responsible for all electrical service (FPL) connections which may be required to power the First Floor Leased Premises. It is anticipated that upon Tenant's occupancy of both the First and Second Floor Leased Premises, Tenant shall have four (4) separate FPL accounts (three for the Second Floor, and one for the First Floor). Upon expiration of the Lease and Tenant's vacation of the Leased Premises Tenant shall provide a written notice to Landlord informing Landlord that it has vacated the Premises. Tenant further agrees that it shall be responsible for assigning back to Landlord, all FPL accounts which were in Tenant's name (only in connection with the Demised Premises). Tenant further agrees that any and all utility deposits which are now associated with the FPL accounts referenced herein, are the property of Landlord and notwithstanding the procedures which may be required for the assignment of said accounts to Tenant, to the extent such utility deposits inure to the benefit of Tenant, Tenant agrees it shall reimburse to Landlord such deposits if, as, and when Landlord provides a written request to Tenant. 3.4 Sales Tax: Landlord acknowledges that Tenant is exempt from the payment of Florida sales tax and Tenant shall provide all requisite exemption certification to Landlord which information shall be set forth in "Exhibit 3.4" attached hereto and made part hereof. 4. Location for Payments. All rents or other payments due hereunder shall be paid to Landlord at the following address: PALM COURT AT 23RD STREET, LTD. 420 Lincoln Road, Suite #448 Miami Beach, FL, 33139 Attention: Ronald Bloomberg 5. Parkino. At Tenant's option, and upon written notice by Tenant, the Landlord shall, pursuant to the use provisions set forth in subsection 5.1 below, designate in Landlord's controlled parking area adjacent to the Building up to fourteen (14) parking spaces, for Tenant's exclusive use, at the cost to Tenant of Seventy Five ($75) Dollars per month per space. 5 5.1 The Tenant's rights to park cars in Landlord's controlled parking area shall be subject to the following: i) Hours of Use: 6:00 A.M. through 7:00 P.M., Monday through Friday. Any vehicle remaining past these hours of operation shall be assessed a parking charge of $1 .50 per hour, or any fraction thereof. At the end of each month, Landlord shall notify Tenant in writing as to whether any additional parking charges have been assessed and Tenant shall pay such charges within fifteen (15) days of receipt of such notice; ii) Use: Spaces shall only be used by Tenant's employees; iii) Tenant shall notify Landlord in writing of the name of each employee who shall be using the parking space(s), together with a description of the vehicle and tag number. Landlord shall prepare parking passes for each individual referenced on the Tenant's list and such pass shall be for the excusive use of Tenant's employee. Lost passes shall be assessed a fee of Twenty Five ($25.00) Dollars per pass. 5.2 Landlord expressly reserves the sole right to terminate Tenant's use of all or part of the parking privileges set forth herein provided 30 days written notice by Landlord to Tenant. 6. Security Deposit. Intentionally Omitted. 7. Use and Possession of Demised Premises. 7.1 The Demised Premises shall be used by the Tenant as the primary location for the City of Miami Beach Parking Department's administrative and customer service operations. Said Demised Premises shall generally be open for Tenant's business Monday through Friday from 6:00 AM until 7:00 PM Tenant reserves the right to utilize the Demised Premises for another public purpose subject however to the prior written approval by Landlord, which approval may be withheld by Landlord in its sole discretion. 7.2 Tenant will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by public law, ordinance or government regulation, orthat may be dangerous to life, limb or property. Tenant may not commit waste on the Demised Premises, use the Demised Premises for any illegal purpose, or commit a nuisance on the Demised Premises. In the event that the Tenant uses the Demised Premises for any purposes not expressly 6 permitted herein, then the Landlord may declare this Lease in default pursuant to Section 18, or without notice to Tenant, restrain such improper use by injunction or other legal action. 8. Improvements. 8.1 Landlord has agreed to construct certain Tenant-requested improvements to the Demised Premises which, without limitation shall include i) the modification of the Second Floor Leased Premises in order to accommodate a customer service area; and ii) the direct build-out of the First Floor Leased Premises in order to accommodate a secured coin room (together the "Tenant Build-Out Improvements"). Upon execution of this Lease by the parties hereto, Landlord and Tenant shall use reasonable good faith efforts and work together in the development of plans and specifications for the Tenant Build-Out Improvements. 8.1.1 Plans and Approvals for Alteration of Second Floor Leased Premises: Tenant hereby acknowledges that prior to the Lease Commencement Date, Landlord has in good faith, worked with Tenant and its employees (including the City Manager's Office) in order to ascertain the extent and nature of the alterations so required by Tenant to the Second Floor Leased Premises. To this end, Landlord retained the service of an architect to facilitate the requirements of Tenant and said architect has developed the conceptual plans for the Second Floor Leased Premises. Concurrent with its execution of this Lease, Tenant acknowledges that it has provided input for the alteration of the Second Floor Leased Premises and has reviewed the plans for alterations, and that said plans have been approved by Tenant. Said plans for the alteration of the Second Floor Premises are set forth in "Exhibit 8.1.1" attached hereto and made a part hereof. 8.1.2 All plans and specifications for construction of the First Floor Leased Premises portion of Tenant's Build-Out Improvements must be approved, in writing, by the City Manager or his designee acting in his proprietary capacity, prior to Landlord preceding to secure the necessary regulatory approval(s) (if applicable) and building permits(s) for same. Once approved, said plans for the alteration of the First Floor Leased Premises shall be attached as "Exhibit 8.1.2" and made part hereof. 8.2 Provided Landlord has obtained all necessary approvals (both proprietary and regulatory), and provided further that all necessary permits have been obtained, Landlord shall proceed with construction of Tenant's Build-Out Improvements and shall use its best efforts to have said improvements substantially completed on or before October 1, 2006. 7 8.3 Upon completion of construction of the Tenant Build-Out Improvements, Landlord shall notify Tenant, in writing, of its intent to apply for a Certificate of Occupancy. Upon receipt of such notice, Tenant shall be permitted to inspect the improvements to determine that they have been substantially completed in accordance with the approved plans and specifications. "Substantial Completion" shall be defined as the date certified by the Tenant (acting through the City Manager or his designee) in writing that all conditions and requirements of the building permit(s) and regulatory agencies have been satisfied and the improvements have been sufficiently completed in accordance with the approved plans and specifications, so that the portions of the Demised Premises forwhich the Tenant Build-Out Improvements have been constructed, and the improvements themselves, are available for beneficial occupancy by Tenant. A Certificate of Occupancy (CO) must also be issued for substantial completion to be achieved. 8.4 Tenant's obligation to pay Rent for the First Floor Leased Premises, as defined in subsection 3.1.2, shall only commence the sooner of (i) the date Tenant takes possession of the First Floor Leased Premises or (ii) Landlord has obtained a Certificate of Occupancy for the Tenant Build-Out Improvements. Notwithstanding the preceding sentence, in no event shall Tenant be required to commence payment of the increased Base Rent, as set forth in subsection 3.1.2, until Landlord achieves Substantial Completion of the Tenant Build-Out Improvements. 8.5 Notwithstanding anything contained herein to the contrary, provided Landlord has diligently prosecuted construction ofthe Tenant Build-Out Improvements for the First Floor Leased Premises, which actions shall include, but not be limited to, the application for and obtaining of any and all required approvals (i.e. building permit, etc.), but for reasons outside of Landlord's control, including events of force majeure, construction is delayed, it is understood that the anticipated completion date, as set forth in Subsection 8.2, may be commensurately extended without incident or penalty to Landlord; provided Tenant shall receive a commensurate extension of Tenant's obligation to pay Base Rent for the First Floor Leased Premises. 8.5.1 Force Majeure events shall include, but not be limited to, acts of god, and/or power interruptions which could delay work to Premises, delays in the municipal process that might prevent permitting or inspections to the Premises, etc. 8.6 In the event Landlord has not substantially completed the Tenant Build-Out Improvements on or before October 15,2006, then Tenant, at its sole option and discretion, may deem Landlord in default of the Lease Agreement; or may, upon written request by Landlord, consent to an extension for Landlord to substantially complete the Tenant Build-Out Improvements. 8 In no event shall Tenant be required to commence payment of the Base Rent in Subsection 3.1.2 until Landlord's Substantial Completion of the Tenant Build-Out Improvements. 8.7 Tenant's costs for the Tenant Build-Out Improvements for both the First and Second Floor Leased Premises shall not exceed Seventy Thousand ($70,000) Dollars (the "Build-Out Improvement Costs"), as those projected costs are itemized in "Exhibit 8.7" attached hereto. Tenant shall also be required to incur the costs of any municipal permitting fees which may be required in order for Landlord to obtain a building permit (but Tenant shall use its best efforts to secure a waiver of such fees), as well as, reasonable costs of any architectural and engineering fees. Landlord shall use its best efforts to have such fees included in the Build-Out Improvement Costs. 8.7.1 Prooress Payments: In connection with the Tenant Build-Out Improvements and all matters relating to the payment for such work, it is understood and agreed that Landlord shall incur the initial periodic costs of such and provide to Tenant a schedule of all work completed on a periodic basis (the "Construction Draw Schedule"). The Landlord shall conduct work on the Premises in accordance with the approved plans and Tenant's requests for the Second Floor Leased Premises. Upon completion of various phases of the work, and upon receipt by Tenant of the periodic Construction Draw Schedule, Tenant agrees that within thirty (30) days of such receipt, it shall reimburse Landlord the amount referenced on each periodic Construction Draw Schedule (the "Progress Payment"). The final payment shall be billed as of the date Landlord obtains the CO which shall be reimbursed within thirty (30) days of such receipt. 8.7.2 Penalties for Tenant's Failure to Fund: Reimbursements of the amounts required under the periodic Construction Draw Schedules not paid timely by Tenant shall be deemed an event of default under this Lease. In addition, Tenant agrees that if for reasons within its control it does not timely pay the Progress Payment amounts, Tenant shall be obligated to commence the payment of Base Rent as of October 1, 2006, regardless of whether Substantial Completion has been reached. Furthermore, if payments are not made within thirty (30) days following Tenant's receipt of the periodic Construction Draw Schedules, Landlord reserves the right to indefinitely suspend the scope of work required to complete the First Floor Leased Premises. 8.7.3 Contractor Bids: Prior to Landlord commencing any Tenant Build-Out Improvements, Landlord agrees it shall secure no less than two bona fide written bids 9 from certified contractors estimating the costs to perform the work. Any savings in costs below the $70,000 amount shall be passed on to the Tenant. 8.8 In the event Tenant wishes to additionally improve or alter the Demised Premises (beyond Landlord's obligation to construct the Tenant Build-Out Improvements), the plans for such improvements shall be submitted to the Landlord for the Landlord's prior written consent, which will not be unreasonably withheld or delayed. All permanent (fixed) improvements to the Demised Premises shall' remain the property of the Landlord upon termination of the Lease. Upon termination of the Lease, all personal property and trade fixtures belonging to the Tenant may be removed by the Tenant from the Demised Premises without damage to the Demised Premises. Tenant will permit no liens to attach to the Demised Premises arising from, connected with or related to the construction of the additional improvements undertaken by Tenant pursuant to this subsection 8.8. Moreover, such construction shall be accomplished through the use of licensed, reputable contractors who are acceptable to Landlord, approval of which will not be unreasonably withheld. Any and all approvals and/or permits required for the installation of additional improvements shall be the sole responsibility of Tenant. 8.9 The requirements in Subsection 8.8 for submission of plans and the use of specific contractors shall not apply to maintenance or repairs which do not exceed Ten Thousand ($10,000) Dollars, provided that the work is not structural, and provided that it is permitted by applicable law. 8.10 The Landlord acknowledges and agrees that if, within six (6) month following the Termination Date and Tenant's vacation of the First Floor Leased Premises (i.e. Suite 170), Landlord is successful in re-Ietting, or reusing said Leased Premises, the Landlord shall reimburse the Tenant an amount of money equal to twenty five (25%) percent of the actual costs incurred by Tenant in building out said First Floor Leased Premises (but in no event shall Landlord be obligated to pay more than $17,500). This condition is strictly predicated upon Landlord's ability to substantially re-Iet and/or reutilize the First Floor Leased Premises within the time period specified herein. 9. Landlord's Rioht of Entry. 9.1 The Landlord, or its authorized agent or agents, shall not have the right to enter upon the Demised Premises without the prior consent of Tenant and it is acknowledged that the Premises shall be secured by an alarm system to be installed by Tenant at Tenant's sole cost. Notwithstanding the preceding sentence, Landlord shall have access to the Premises in the event of an emergency at which time the alarm company or an emergency contact from the City of Miami Beach will be notified for assistance to gain entry to the 10 Premises. Tenant agrees that it shall issue one key to the Leased Premises to Landlord. Tenant is allowed and shall be permitted to reasonably enjoy the Leased Premises and conduct its business without interruption or interference. If required, Landlord shall provide reasonable notice, in writing, to Tenant and shall enter the Leased Premises only when accompanied by an authorized representative ofthe Tenant (unless access is required during an emergency event). Nothing herein shall imply any duty on the part of the Landlord to do any work that under any provisions of this Lease the Tenant may be required to perform, and the performance thereof by the Landlord shall not constitute a waiver of the Tenant's default. 10. Tenant's Insurance. Landlord acknowledges that Tenant is a Florida municipal corporation and is self- insured. Upon Landlord's written request, Tenant shall have its Risk Manager provide Landlord with written confirmation of Tenant's self-insurance. 11. Property Taxes and Assessments. For the purposes of this Section and other provisions of this Lease: 11.1 The term "Property Taxes" shall mean (i) the real estate taxes, assessments, and special assessments of any kind which may be imposed upon the tax lot on which the Building is constructed (the "Land") and (ii) any expenses incurred by Landlord in obtaining a reduction of any such taxes or assessments. 11 .2 The term "Property Tax Year" shall mean the period of twelve (12) calendar months, beginning on January 1st of each year. 11.3 The term 'Tenant's Proportionate Share" shall mean the ratio that the square footage of the Demised Premises bears to the square footage of the leasable space in the entire Building. Tenant proportionate share shall be deemed to be twenty three (23%) percent. 12. Assiqnment and Sublettinq. 12.1. Tenant shall not have the right to assign or sublet the Demised Premises, in whole or in part, without the prior written consent of Landlord which consent may be withheld at Landlord's sole discretion. If granted however, the making of any assignment will release Tenant from any of its obligations under this Lease. 12.2 Any consent by the Landlord to any act of assignment shall apply only to the specific transaction thereby authorized. Such consent shall not be construed as a waiver of the duty of the Tenant or the legal representatives or assigns of the Tenant, to obtain from the Landlord consent to any other or subsequent assignment, or as modifying or limiting the rights ofthe Landlord 11 under the foregoing covenants of the Tenant not to assign without such consent. 12.3 Any violation of the provisions of this Lease, whether by act or omissions, by a sub-tenant shall be deemed a violation of such provision by the Tenant, it being the intention and meaning of the parties hereto, that the Tenant shall assume and be liable to the Landlord for any and all acts and omissions of any and all sub-tenants. 13. Maintenance and Repair. 13.1 Tenant shall maintain the Demised Premises and the fixtures and appurtenances therein, and at its sole cost and expense shall make all repairs thereto as and when needed to preserve them in good working order and condition. Landlord shall be responsible forthe maintenance of the roof, the exteriorofthe Building, the structural electrical and plumbing (other than bathroom fixtures within the Demised Premises), the common areas and the HV AC system (however Tenant shall be responsible for periodically changing the air filters for each air handling unit in the Demised Premises subject to the Landlord providing to Tenant a maintenance schedule and documentation of system requirements). Landlord shall maintain and/or repair those items that it is responsible for, so as to keep same in proper working condition. Tenant shall also be responsible for all interior walls and the interior and exterior of all windows and doors. 13.2 All damage or injury of any kind to those fixtures and appurtenances in the Demised Premises that are Tenant's responsibility (as provided in subsection 13.1), except damage caused by the wrongful acts or negligence of the Landlord, shall be the obligation of Ten ant, and shall be repaired, restored or replaced promptly by Tenant at its sole cost and expense to the satisfaction of Landlord. 13.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to the original work or installations and shall be done in good and workmanlike manner. 13.4 If Tenant fails to make such repairs or restorations or replacements, the same may be made by the Landlord, at the expense of Tenant, and all sums spent and expenses incurred by Landlord shall be collectable as Additional Rent and shall be paid by Tenant within ten (10) days after rendition of a bill or statement thereof. 14. Governmental Reoulations. The Tenant covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City 12 governments, and any and all of their departments and bureaus applicable to the Demised Premises. 15. Liens. Tenant will not permit any mechanics, laborers, or material man's liens to stand against the Demised Premises or improvements for any labor or materials to Tenant or claimed to have been furnished to Tenant's agents, contractors, or sub-tenants, in connection with work of any character performed or claimed to have performed on said premises, or improvements by or at the direction or sufferance of the Tenant, provided however, Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Tenant shall give the Landlord reasonable security as may be demanded by Landlord to insure payment thereof and prevent sale, foreclosure, or forfeiture of the Demised Premises or improvements by reasons of such non-payment. Such security need not exceed one and one half (1 %) times the amount of such lien or such claim of lien. Such security shall be posted by Tenant within ten (10) days of written notice from Landlord, or Tenant may "bond off" the lien according to statutory procedures. Tenant will immediately pay any judgment rendered with all proper cost and charges and shall have such lien released or judgment satisfied at Tenant's own expense. 16. Enforcement. Tenant agrees to pay the Base Rent and any Additional Rent herein reserved at the time and in the manner aforesaid, and should said rents herein provided, at any time remain due and unpaid for a period of forty five (45) days after the same shall become due, the Landlord may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately or the Landlord may pursue any other remedies enforced by law. 17. Condemnation. 17.1 If at any time during the term of this Lease (and any renewal term hereunder), all or any part or portion of the Demised Premises are rendered untenantable, taken, appropriated, or condemned by reason of Eminent Domain proceedings (except if the Eminent Domain proceedings are initiated by the City of Miami Beach), then this Lease shall be terminated as of the date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by reason of this Lease or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date, and the Tenant shall pay any and all rents, additional rents, utility charges, or other costs including excess taxes for which it is liable under the terms of this Lease, up to the date of such taking. 17.2 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the Landlord in any such Eminent Domain proceeding, excepting, however, the Tenant shall have the right to 13 claim and recover from the condemning authority, but not from the Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business by reasons of the condemnation and for or on account of any cost or loss which Tenant might incur in removing Tenant's furniture and fixtures. 18. Default. 18.1 Default by Tenant: At the Landlord's option, any of the following shall constitute an Event of Default under this Lease: 18.1.1 The Base Rent, Additional Rent, or any installment thereof is not paid promptly when and where due within ten (10) days of the due date (taking into consideration the grace period provided) and if Tenant shall not cure such failure within ten (10) business days thereafter; 18.1.2 Any other payment provided for under this Lease is not paid promptly when and where due; 18.1.3 The Demised Premises shall be deserted, abandoned, or vacated; 18.1.4 The Tenant shall fail to comply with any material term, provision, condition or covenant contained herein other than the payment of rent and shall not cure such failure or commence to cure such failure within fifteen (15) days after the receipt of written notice from Landlord specifying any such default; or if such default(s) is of a nature that it cannot be reasonably cured within fifteen (15) days, provided Tenant has commenced and is continuing diligently to cure said default(s) beyond the initial fifteen (15) day period; 18.1.5 Receipt of notice of violation from any governmental authority having jurisdiction dealing with a code, regulation, ordinance orthe like, which remains uncured for a period of fifteen (15) days from its issuance, or if such default(s) is of a nature that it cannot be reasonably cured within fifteen (15) days, provided Tenant has commenced and is continuing diligently to cure said default(s) beyond the initial fifteen (15) day period. 19. Rights on Default. 19.1 Riohts on Default: In the event of any default by Tenant as provided herein, Landlord shall have the option to do any of the following in addition to and not in limitation of any other remedy permitted by law or by this Lease; 14 19.1.1 Terminate this Lease, in which event Tenant shall immediately surrender the Demised Premises to Landlord. 19.1.2 It is expressly agreed and understood by and between the parties hereto that any installments of rent accruing under the provisions of this Lease which shall not be paid when due shall bear interest at the maximum legal rate of interest per annum then prevailing in Florida from the date when the same was payable by the terms hereof, until the same shall be paid by Tenant. Any failure on Landlord's behalf to enforce this Section shall not constitute a waiver of this provision with respect to future accruals of past due rent. No interest will be charged for payments made within the grace period, such grace period to be defined as within five (5) days of the due date. 19.1.3 If Tenant shall default in making any payment of monies to any person or for any purpose as may be required hereunder, Landlord may pay such expense but Landlord shall not be obligated to do so. Tenant upon Landlord's paying such expense shall be obligated to forthwith reimburse Landlord for the amount thereof. All sums of money payable by Tenant to Landlord hereunder shall be deemed as rent for use of the Demised Premises and collectable by Landlord from Tenant as rent, and shall be due from Tenant to Landlord on the first day of the month following the payment of the expense by Landlord. 19.1.4 The rights of the Landlord under this Lease shall be cumulative but not restrictive to those given by law and failure on the part of the Landlord to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 19.2 Default by Landlord: The failure of Landlord to perform any of the covenants, conditions and agreements of the Lease which are to be performed by Landlord and the continuance of such failure for a period of thirty (30) days after notice thereof in writing from Tenant to Landlord (which notice shall specify the respects in which Tenant contends that Landlord failed to perform any such covenant, conditions and agreements) shall constitute a default by Landlord, unless such default is one which cannot be cured within thirty (30) days because of circumstances beyond Landlord's control, and Landlord within such thirty (30) day period shall have commenced and thereafter shall continue diligently to prosecute all actions necessary to cure such defaults. However, in the event Landlord fails to perform within the initial thirty (30) day period provided above, and such failure to perform prevents Tenant from 15 operating its business in a customary manner and causes an undue hardship for the Tenant, then such failure to perform (regardless of circumstances beyond its control) as indicated above, shall constitute a default by Landlord. 20. Indemnity Aqainst Claims, Costs and Charqes: Landlord acknowledges that Tenant is precluded from indemnifying against claims, costs and charges pursuant to Florida Statute 768.28. 21. Indemnification Aqainst Claims. Intentionally Omitted. 22. Sions and Advertisino. Without the prior written consent of Landlord, Tenant shall not permit the painting and display of any signs, plaques, lettering or advertising material of any kind on or near the Demised Premises. All signage shall comply with signage standards established by Landlord and comply with all applicable building codes, and any other Municipal, County, State and Federal laws. 23. Effect of Conveyance. The term "Landlord" as used in the Lease means only the owner for the time being of the land and Building containing the Demised Premises, so that in the event of any sale of said land and Building, or in the event of a lease of said Building, the Landlord shall be and hereby is entirely freed and relieved of all covenants and obligations of the Landlord hereunder, and it shall be deemed and construed without further agreement between the parties, or between the parties and the purchaser at such sale, or the lease of this Building, that the purchaser or Tenant has assumed and agreed to carry out all covenants and obligations of the Landlord hereunder. 24. Damaqe to the Demised Premises. 24.1 If the Demised Premises shall be damaged by the elements or other casualty not due to Tenant's negligence, or by fire, but are not thereby rendered untenantable, as determined by Landlord, in whole or in part, and such damage is covered by Landlord's insurance, if any, (hereinafter referred to as "such occurrence"), Landlord, shall, as soon as possible after such occurrence, utilize the insurance proceeds to cause such damage to be repaired and the rent shall not be abated. If by reason of such occurrence, the Demised Premises shall be rendered untenantable, as determined by Tenant, only in part, Landlord shall as soon as possible utilize the insurance proceeds to cause the damage to be repaired, and the rent meanwhile shall be abated proportionately as to the portion of the Demised Premises rendered untenantable; provided however, if the Demised Premises are by reason of such occurrence, rendered more than 50% but less than 100% untenantable, as determined by Landlord, Landlord shall promptly obtain a good faith estimate of the time required to render the Demised Premises 16 tenantable. If such time exceeds sixty (60) days, the Tenant shall have the option of canceling this Lease, which option shall be exercised by Tenant in writing within ten (10) days of receipt of notice of same from Landlord. 24.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, the Landlord shall utilize the insurance proceeds to cause such damage to be repaired and the rent meanwhile shall be abated in whole; provided, however, that Landlord shall have the right, to be exercised by notice in writing delivered to Tenant within sixty (60) days from and after said occurrence, to elect not to reconstruct the destroyed Demised Premises, and in such event, this Lease and the tenancy hereby created shall cease as of the date of said occurrence, the rent to be adjusted as of such date. If the Demised Premises shall be rendered wholly untenantable, the Tenant shall have the right, to be exercised by notice in writing, delivered to Landlord within ten (10) days from and after said occurrence, to elect to terminate this Lease, the rent to be adjusted accordingly. Notwithstanding any clause contained in this Section, if Landlord becomes self insured orthe damage is not covered by Landlord's insurance, then Landlord shall have no obligation to repair the damage, but Landlord shall advise Tenant in writing within ten (10) days of the occurrence giving rise to the damage and of its decision not to repair, and the Tenant may, at any time thereafter, elect to terminate the Lease, and the rent shall be adjusted accordingly. 25. Quiet Enioyment. The Tenant shall enjoy quiet enjoyment of the Demised Premises and shall not be evicted or disturbed in possession of the Demised Premises so long as Tenant complies with the terms of this Lease. 26. Waiver. 26.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of Landlord to insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Lease, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 26.2 A waiver of any term expressed herein shall not be implied by any neglect of Landlord to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 26.3 The receipt of any sum paid by Tenant to Landlord after breach of any condition, covenant, term or provision herein contained shall not be deemed 17 a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation, and not as rent, unless such breach be expressly waived in writing by Landlord. 27. Notices. The addresses for all notices required under this Lease shall be as follows, or at such other address as either party shall be in writing, notify the other: LANDLORD: PALM COURT AT 23RD STREET, LTD. 420 Lincoln Road, Suite # 448 Miami Beach, FL 33139 Attention: Ron Bloomberg TENANT: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With copy to: Asset Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 All notices shall be hand delivered and a receipt requested, or by certified mail with "Return Receipt" requested, and shall be effective upon receipt. 28. Entire and Bindino Aoreement. This Lease contains all of the agreements between the parties hereto, and it may not be modified in any manner other than by agreement in writing signed by all the parties hereto or their successors in interest. The terms, covenants and conditions contained herein shall inure to the benefit of and be binding upon Landlord and Tenant and their respective successors and assigns, except as may be otherwise expressly provided in this Lease. 29. Provisions Severable. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder ofthis Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 30. Captions. The captions contained herein are for the convenience and reference only and shall not be deemed a part of this Lease or construed as in any manner limiting or amplifying the terms and provisions of this Lease to which they relate. 18 31. Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall include the singular, and the use of one gender shall include all genders. 32. Governinq Law. This Lease shall be governed by and construed in accordance with the law of the State of Florida. 33. Limitation of Liability. Intentionally Omitted. 34. Attorneys Fees. If it becomes necessary for Tenant or Landlord to enforce their respective rights under this Agreement or any part hereof through litigation, Tenant and Landlord agree that the prevailing party shall be entitled to recover from the other party all costs and expenses of such litigation, including a reasonable attorney's fee and costs, for all trial and appellate proceedings. 35. Surrender of the Demised Premises. The Tenant shall, on or before the last day of the term herein demised, or the sooner termination thereof, peaceably and quietly leave, surrender and yield upon to the Landlord the Demised Premises, together with any and all equipment, fixtures, furnishings, appliances or other personal property, if any, located at or on the Demised Premises and used by Tenant in the maintenance, management or operation of the Demised Premises, excluding any trade fixtures or personal property, if any, which can be removed without material injury to the Demised Premises, free of all liens, claims and encumbrances and rights of others or broom- clean, together with all structural changes, alterations, additions, and improvements which may have been made upon the Demised Premises, in good order, condition and repair, reasonable wear and tear excepted, subject, however, to the subsequent provisions of this Section. Any property which pursuant to the provisions of this Section is removable by Tenant on or at the Demised Premises upon the termination of this Lease and is not so removed may, at the option of the Landlord, be deemed abandoned by the Tenant, and either may be retained by the Landlord as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the Landlord may see fit. If the Demised Premises and personal property, if any, be not surrendered at the end of the term as provided in this Section, the Tenant shall make good the Landlord all damages which the Landlord shall suffer by reason thereof, so far as such delay is occasioned by the failure of the Tenant to surrender the Demised Premises as and when herein required. Notwithstanding the aforestated, Tenant agrees that upon vacating the Demised Premises it shall conduct the following schedule of services and maintenance with respect to preparing the Demises Premises for "turnover" back to Landlord: Painting of the Demised Premises; carpet cleaning for Demised Premises; replacement of 19 any glass or other fixtures which may have been broken during Tenant's possession; replacement of any light fixtures which may have been broken (including bulbs); replacement of any locks which may have been changed, or in the alternative, Tenant shall provide keys and./or combinations to said locks; replacement and/or repair of any window treatments, shades and/or blinds which may become damages as a result of Tenant's use of same; the interior cleaning of all windows within the Demised Premises, the replacement of any ceiling tiles which may have broken during Tenant's possession of the Demised Premises and the replacement of any furniture, fixtures or equipment which Landlord has provided for Tenant's use of. 35.1 Holdover: If the Tenant retains possession of the Demised Premises or any part thereof after the termination of this Lease or any extension thereof, by lapse of time or otherwise, the Tenant shall pay the Landlord Rent at two (2) times the rate payable for the month immediately proceeding said holdover. The provisions of this paragraph do not waive the Landlord's rights of re-entry or any other right hereunder. Any retention of the Demised Premises after the termination of this Lease or any extension thereof shall be considered as a month-to- month holdover unless otherwise agreed to in writing by both parties. 36. Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 37. Venue. This Lease Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. LANDLORD AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT THE LANDLORD AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS LEASE AGREEMENT. 38. Rules and Regulations: Tenant agrees to observe and comply with and Tenant agrees that his agents, servants, employees and all persons visiting in the Demised Premises will observe and comply with rules and regulations (the "Rules and Regulations") annexed hereto as "Exhibit 38" and such other and further Rules and Regulations as Landlord may from time to time deem needful and prescribe for the reputation, safety, care and cleanliness of the Building and land and the preservation of good order therein and the comfort, quiet, and convenience of other occupants of the Building. Tenant agrees it shall be liable for the violation of any of the said Rules 20 and Regulations by Tenant or its employees. Landlord agrees that the Rules and Regulations will be reasonable and will not interfere with Tenant's quiet enjoyment of the Demised Premises during the business hours prescribed herein. Notwithstanding the absence of any published Rule and Regulations, Tenant shall be deemed solely responsible for the acts of its employees and guests. Any damage to any portion of the property caused by Tenant shall be the sole responsibility of the Tenant to correct. Failure to comply with any of the Rules and Regulations or failure to correct or pay for any damage caused by the Tenant, its employees or guests shall be deemed an event of default. 39. Subordination. Tenant agrees that its rights hereunder are subordinate to the lien of any mortgage, ground lease, or any other method of financing or refinancing now or hereafter placed against the Land and/or the Premises and/or any/or all of the Building now built or hereafter to be built on the Land by Landlord and to any and all advances made or to be made hereunder and to the interest thereon and to all renewals, replacements, modifications, consolidations and extension thereof. The Tenant agrees to execute and deliver, at any time and from time to time, upon the request of the Landlord any instrument which may be necessary or appropriate for Landlord's mortgagee. If a Mortgagee of Landlord's shall request reasonable modifications to this Lease, Tenant shall execute, acknowledge, and deliver to the Mortgagee an agreement, in form and substance satisfactory to the Mortgagee, evidencing such modifications, provided that such modifications do not, in Tenant's reasonable discretion, increase Tenant's obligations under this Lease or materially adversely affect (a) the leasehold interest created by this Lease, or (b) tenant's use and occupancy or the Demised Premises. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) 21 IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by the r~spective ~ authorized officers and the respective corporate seals to be affixed this ~ day of 6 t,U T , 2006. ATTEST: BY: Jli1wd' ~ AA ct ~ Robert Parcher, City Clerk ATTEST: BY: 'io~) '-;E 0)II-1iY?rc, (Print Named CORPORATE SEAL (Affix Here) F:\DDH P\$ALL \ASSET\Palm Court\PalmCourt. Lease. FI NAL.doc CITY OF MIAMI BEACH, FLORIDA BY: ~p~, ~ Vice-Mayor Jerry Libbin PALM COURT AT 23RD STREET, LTD. Palm Court Inc. (general partner) APPROVED AlTO FOAM a LANGUAGI fORlXECUTION ~~'O~ 22 Exhibit A GROUND FLOOR LEASED PREMISES CROSS-HATCHED ~ 1 r ; v'LJY1, o o o (."" "tiI o o @ 0 0 0 @ 0 0 0 0 ,.:.I..l,EH'! !.(.'::'I)" M{~".r}c 'OJ l"""" c~ = c::::1 ,~.."..,.._,....., t::::J (ZQ 23 v -,,,,,,.,,,, """" -,.' I ~,-,-_,-''','_J-., I.~J..._, _ .t~. -, ~ ___Jdf ~ ~} ~ ~ J- l r r-- I I I I I I I I I I I I I I I I I I I I I I I J ''''-''---'::J o 0 o 0 o ~__c c:r'-,) C;) , .' ~ ~, r.) ~~~1UN;.~;;~! ~ ~D "-, r:>. V o 22c\.. Exhibit B SECOND FLOOR LEASED PREMISES CROSS-HATCHED '") r- R 1 r SLACK ~ ~ ~R E Z W'" ASS 0 C % A..!!;! c.Otl:~AlC lhI'~OIl: OC$lCiill fe, ~ 1\ \ " J I I ,_I ().~ ljLIS, t . -", '''3 .L (\.. All flrea..... diml'!n.sions. a.nd condilions are. approx!male and $ub}ccl La cha::\&:~. Actual ar<:as, dimen,:;-jon$ and conlHtions should be ""llri:.~d. /\ 1\ L r'Jl South Beach, Florida /, / /: I " CORRiDOR 2nd Floor 24 Exhibit 3.4 SALES TAX EXEMPTION NOTICE .. Oft"^NTMI:J".;T Of "EVl"vE !COnsumer's Certificate of Exemption] Issued Pursuant to Chapter 212, Florida Statutes DR.14 R.01/02 23-09-329871-54C Certlllcate Number 07/15/07 Expiration Date This certifies that CITV OF MIAMI BEACH '700 CONVENTION CENTER DR MIAMI BEACH FL 33139-1819 is exempt from the payment of Florida sales and use tax on Teal property rented. transient rental pro'perty rented, tangible personal property purchased or rented, or services purchased. "- o(P"Jthllh T nF RIIII NUl ~ortant InforrnationJor Exempt Organizations I DR-14 R.Ol/02 1. You must provide all vendors and suppliers with an exemption certificate before making tax-exempt purchases See Aule 12A-1,039, Florida Administrative Code (FAG). Your Consumer's Certificate of Exemption is to be used solely by your organization for your organIzation's customary nonprofit activities. 3. Purchases made by an individual on behalf of the organization are taxable, even if the individual will be reimbursed by the organization, 4. This exemption applies only te purchases your organization makes. The sale or lease to others by your organization of tangible persona! property, sleeping accommodations or other real property is taxable. Your organization must register. and coliect and remit sales and use tax on such taxable transactions. Note: Churches are exempt frcm this requirement except when they are the lessor of real property (Au Ie 12A-1.070, FAG). 5. It is a criminal offense to fraudulently present this certificate to evade the payment of sales tax. Under no circumstances should this certificate be used for the personal benefit of any individual. Violators will be liable for payment of the sales tax plus a penalty of 200"10 of the tax. and may be subject to conviction of a third degree telony, Any violation will necessitate the revocation of this certificate. 6. If you have questions regarding your exemption certificate, please contact the Exemption Unit of Central Registration at 850-487-4130. The mailing address is 5050 WestTennessee Street. Tallahassee. FL 32399-0100. 25 Exhibit 8.1 .1 SECOND FLOOR LEASED PREMISES APPROVED FLOOR PLANS h~]lfJ .. . t-. ~-- - rJ~I.. r """""""''''''''' C<>Nr._ '-c ---~,J ~ . .-- 1 - ...,."""""'.1 ~ ~ 1 rJ..--~~ ~ I:=~ .,.,......,. :! I 11 ./7 I If' (. U ':._1> 21)cl.. 26 Exhibit 8.1.2 FIRST FLOOR LEASED PREMISES APPROVED FLOOR PLANS TO BE SUBMITTED BY LANDLORD UPON RECEIPT OF BUILDING PERMIT 27 Exhibit 8.7 PROJECTED BUDGET TO COMPLETE TENANT'S BUILD-OUT IMPROVEMENTS ;- FIRST FLOOR - 1,200 SQ. FT. _ PROJECTED BUILD OUT COSTS Space Cost Soft Costs: Size $PSF Total Architectual: _.-.... 1200 $ 3,00 $ 3,600 MEP Engineering 1200 $ 2.00 $ 2,400 Printing $ 50C Plans Expediting $ 1,000 Building Permit Fee: $ 1,500 Road Impact Fee $ Concurrency Fee $ 500 \;vASA Fee $ Parking Impact Fee $ City Water Connection Fee $ 2,500 Other $ Sub-Total $12,000 Hard Costs 1200 $ 30.00 $36,000 GC Fee 15% $ 4.50 $ 5.400 Sub- Total --'-- $41,400 Total $53.400 28 1'7 1/ /7 r-- \\ 2ia. Exhibit 38 RULES AND REGULATIONS 1. Tenant, its officers, agents, servants and employees shall not block or obstruct any of the entries, passages, doors, elevators, elevator doors, hallways or stairways of Building or place, empty or throw any rubbish, litter, trash or material of any nature into such areas, or permit such areas to be used at anytime except for ingress and egress of Tenant, its officers, agents, servants, employees, patrons, licensees, customers, visitors or invitees. 2. No sign, door plaque, advertisement or notice shall be displayed, painted or affixed by Tenant, its officers, agents, servants, employees, patrons, licensees, customers, visitors or invitees in or on any part of the outside or inside of Building, or Leased Premises without prior written consent of Landlord and then only of such color, size, character, style and material and in such places as shall be approved and designated by Landlord. Signs on doors and entrances to Leased premises shall be placed thereon by a contractor designated by Landlord and paid for by Tenant. 3. Landlord will not be responsible for lost or stolen property, equipment, money or any article taken from Leased Premises, Building or common facilities regardless of how or when loss occurs unless as a result of the Landlord's qross neqliqence. 4. Tenant, its officers, agents, servants, and employees shall not install or operate any refrigerating, heating or air conditioning apparatus or carry on any mechanical operation or bring into Leased Premises, Building or common facilities any inflammable fluids or explosives without written permission of Landlord. 5. Tenant, its officers, agents, servants or employees shall not use Leased Premises, Building or common facilities for housing, lodging or sleeping purposes or for the cooking or preparation of food without the prior written consent of Landlord. 6. No additional locks shall be placed on any door in Building without the prior written consent of Landlord. Landlord will furnish two keys to each lock on doors in the Leased Premises and Landlord, upon request of Tenant, shall provide additional duplicate keys at Tenant's expense. Landlord may at all times keep a pass key to the Leased Premises. All keys shall be returned to Landlord promptly upon termination of this Lease. 7. Landlord reserves the right to close Building at 7:00 P.M., subject, however, to Tenant's right to admittance under regulations prescribed by Landlord, and to require that persons entering the Building identify themselves and establish their right to enter or to leave the Building. This rule notwithstanding, Tenant shall be permitted access to its leased Premises at all time during the year. 8. All plate and other glass now in Leased Premises or Building which is broken through cause attributable to Tenant, its officers, agents, servants, employees, patrons, 29 licensees, customers, visitors or invitees shall be replaced by and at expense of Tenant under the direction of Landlord. 9. Tenant shall give Landlord prompt notice of all accidents to or defects in air conditioning equipment, plumbing electric facilities or any part or appurtenance of Leased Premises. 10. The plumbing facilities shall not be used for any other purpose than that for which they are constructed, and no foreign substance of any kind shall be thrown therein, and the expense of any breakage, stoppage, or damage resulting from a violation of these provisions shall be borne by Tenant, who shall, or whose officers, employees, agents, servants, patrons, customers, licensees, visitors or invitees shall have caused it. 11. All contractors and/or technicians performing work for Tenant within the Leased Premises or Building shall be referred to Landlord for approval before performing such work. This shall apply to all work including, but not limited to, installation of telephones, telegraph equipment, electrical devices and attachments, and all installation affecting floors, walls, windows, doors, ceilings, equipment or any other physical feature of the Building or Leased Premises. None of this work shall be done by Tenant without Landlord's prior written approval. 12. Glass panel doors that reflect or admit light into the passageways or into any place in the Building shall not be covered or obstructed by the Tenant and Tenant shall not permit, erect and/or place drapes, furniture, fixtures, shelving, display cases or tables, lights or signs, any advertising devices in front of or in proximity of interior and exterior windows, glass panels or glass doors providing a view into the interior of the Leased Premises unless same shall have first been approved in writing by Landlord. 13. No space in the Building shall, without the prior written consent of the Landlord, be used for manufacturing, public sales, or for the storage of merchandise, or for the sale of merchandise, goods or property of any kind, or auction. 14. Canvassing, soliciting, and peddling in the Building is prohibited and each Tenant shall cooperate to prevent the same. In this respect, Tenant shall promptly report such activities to the building Manager's office. 15. There shall not be used in any space, or in the public halls of the Building, either by any tenant or by jobbers of others, in the delivery or receipt of merchandise, any hand trucks, except those equipped with rubber tires and side guards. 16. Neither Tenant nor any officer, agent, employee, servant, patron, customer, visitor, licensee or invitee of Tenant shall go upon the roof of the Building without the written consent of the Landlord. 17. The Landlord's janitors or cleaning personnel shall not be hindered by Tenant after 5:30 P.M., and such work may be done at any time when the offices are vacant. The 30 windows, doors and fixtures may be cleaned at any time. Tenant shall provide adequate waste and rubbish receptacles, cabinets, bookcases, map cases, etc., necessary to prevent unreasonable hardship to Landlord in discharging its obligations regarding cleaning service. In this regard, Tenant shall also empty all glasses, cups and other containers holding any type of liquid whatsoever. 18. In the event Tenant must dispose of crates, boxes, etc., which will not fit into office wastepaper baskets, it will be the responsibility of Tenant to dispose of same. In no event shall Tenant set such items in the public hallways or other areas ofthe Building, excepting Tenant's own Premises, for disposal. 19. Tenant will be responsible for any damage to the Leased Premises, including carpeting and flooring, as a result of: rust or corrosion of file cabinets; roller chairs, metal objects; or, spills of any type of liquid caused by Tenant or Tenant's agents and quests etc. 20. If the Premises demised to any Tenant become infested with vermin, such Tenant, at its sole cost and expense, shall cause its premises to be exterminated from time to time, to the satisfaction of Landlord, and shall employ such exterminators therefore as shall be approved by Landlord. 21. Tenant shall not install any antenna or aerial wires, or radio or television equipment, or any other type of equipment, inside or outside of the Building, without Landlord's prior approval in writing, and upon such terms and conditions as may be specified by Landlord in each and every instance. 22. Landlord shall have the power to prescribe the weight and position of iron safes and machinery, and they shall in all cases stand on two-inch thick planks to distribute the weight, and the expense of repairing any damage done to the Building by installing or removing a safe or machinery, or by the same while on the premises, shall be borne by Tenant. Safes and machinery shall not be moved into or out of the Building except by persons approved of and at times fixed by the Superintendent. No freight, furniture, packages or bulky matter of any description will be received in the Building, or carried up or down in the elevators, except during the hours designated by Landlord, Tenant agrees that all machines or machinery placed in the Premises by Tenant will be erected and placed so as to prevent any vibration or -annoyance to any other of the tenants in the Building of which the premises are a part, and it is agreed that upon written request of the Landlord, Tenant will, within ten (10) days after the mailing of such notice, provide approved settings for the absorbing, preventing, or decreasing of noise from any or all machines or machinery placed in the premises. 23. Intentionally omitted. 24. In case Landlord shall, in the exercise of any right herein granted, store any personal property, belonging to Tenant, Landlord shall have the further right to dispose of such property by sale or otherwise upon two weeks' notice in writing for that purpose. If 31 Landlord shall sell any such property, Landlord shall be entitled to retain from the proceeds thereof the expenses of the sale and cost of storage. 25. Landlord shall have the right to prohibit any advertising by Tenant which in Landlord's opinion is intentionally harmful or disparaqinq to the Landlord. the Buildinq, its reputation or its desirability as an office Building. Tenant shall discontinue such advertising immediately upon written notification by Landlord. 26. Landlord reserves the right to modify the foregoing rules and regulations, or any of the them, and to make such other and further rules and regulations as in its absolute judgment may from time to time be needful for the reputation, safety, care and cleanliness of the Building, and for the preservation of good order therein, and any such other and further rules and regulations shall be binding upon the parties hereto with the same force and effect as if they had been inserted at the time of the execution hereof. These Rules and regulations have been received, reviewed and agreed to by the Tenant: 32