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Lease Agreement with Spiegel LP~~A~ A~R~~M~~IT BETWEEN THE CITY OF MIAMI BEACH AND SPICGEL LP FOR "SPIEGELWORLD",ALIVE PERFORMANCE VENUE WITH THEATRICAL SHOWS, MUSICAL PERFORMANCES AND ANCILLARY FOOD AND BEVERAGE SERVICES. THIS LEASE AGREEMENT, made this ~~~"day of ~U~ _, 2007, by and between the CITY OF MIAMI BEACF°l, a Florida municipal corpor t' n, (hereinafter referred to as "City"), and Spiegel LP, a corporation, having its principal office at 22 West 19tH Street, Stn Floor, New Yor~l<, NY 10011 (hereinafter referred to as "Lessee"). Demised Premises. City, in consideration of the rentals hereinafter reserved to be paid anti of the covenants, conditions and agreements to be kept and performed by the Lessee, hereby leases, lets and demises to the Lessee, and Lessee hereby leases and hires from the City, those certain premises hereinafter referred to as the "Demised Premises", located in the City of Miami Beach, as commonly referred to as the "Collins Park Beach Spoil Area", located between 21St and 22"d Streets (between the City Boardwalk and the City municipal parking lot at 2100 Miami Beach Way), Miami Beach, Florida, 33141, and more fully described as follows: [Here Insert legal, and attach surveylsketch delineating Demised Premises as Exhibit A] 2. Term. 2.1 _ Lessee shall be entitled to have and to hold the Demised Premises for an initial term of up to three (3) months, commencing on the 14t1~ day of December, 2007 (Commencement Date), and ending on the 'i3th day of March 2008. 2.2 (i) Provided Lessee is in good standing and free from default(s) hereunder, and (ii) upon written notice from Lessee, which notice shall be submitted to the City Manager no later than ninety (90) days following the expiration of the initial term, tl~is Agreement may be extended by the City Manager, in his sole and absolute discretion (as the Chief Operating Officer of the City), for two (2) additional fihree (3) month terms on dates on or around as follows: Second Year -December 15, 2008 -March 10, 2009 Third Year - Deceirtber 16, 2009 -March 19, 2010 -- _--.__Any__extensionsT__if_approve~l,___shalLbe_memorialized_in_vuriting_and~igned_hy_the_____ _____ parties hereto (with the City hereby designating the City Manager as the individual authorized to execute such extension on its behalf). 3. Rent. 3.1 Base Rent: Base Rent for the Demised Premises shall begin to accrue from the date of the first performance or December 24, 2007, whichever is earlier (the Rent Commencement Date), and shall continue to be payable until the date of the last performance. If the first or last performance occurs during any portion of a week, the whole Base Rent will be required. 3.1.1 Throughout the Term herein, the Base Rent for the Demised Premises shall be Three Thousand ($3,000.00) Dollars perweek, payable by Lessee, commencing on the Rent Commencement Date and, thereafter, weekly. Failure to vacate premises within seven (7) days of last performance will result in accrual of Base Rent for each week. 3.1.2 Concurrent with the payment of the Base Rent, Lessee, if deemed applicable by the City, shall also include any and all additional sums for all applicable sales and use tax, now or hereafter prescribed by Federal, State or local law. 3.1.3 Base Rent and all other payments will be due on the last business Friday of each month throughout the Term of this Agreement. 3.2 Additional Rent: Lessee shall also pay, as "Additional Rent", any and all other tax(es), including without limitation, Property Taxes, if imposed, levied or assessed against the Demised Premises as a result of Lessee's use thereof, or any other charge or payment required here by any governmental authority having jurisdiction there over, even though the taxing statute or ordinance may purport to impose such tax against the City. 4. location for Payments. All rents or other payments due hereunder shall be paid to the City of Miami Beach at the following address: City of Miami Beach Tourism and Cultural Development Department c/o Max Sklar, Director 1700 Convention Center Drive Miami Beach, Florida 33139 5. Parking. - - -- -tr~tor}tionall~4mitte~---- ----- _ ---------- - -- -------- 6. Security Deposit. Following execution of this Lease by the parties hereto, and in no event later than ?_ sixty (60) days prior to the Commencement Date, Lessee shall pay to City the Sum of Five Thousand Dollars ($5,000), as security for the faithful performance by Lessee of the terms, conditions and covenants of this Lease. In the event of Lessee's default of a term, condition and/or covenant of this Lease, the City shall be entitled to retain such Security Deposit as liquidated damages. In the event that Lessee shall fully comf~ly with all of the terms, conditions, and covenants of this Lease, the Security Deposit shall be returned to Lessee, without interest, at the end of the Term. 7. Use and Possession of Demised Premises. 7.1 The Demised Premises shall be used by the Lessee for the installation, operation and maintenance of the event to be commonly referred to as "Spiegelworld", which shall consist of the following: (a) 1. Circus themed cabaret show, featuring live amplified music, acrobatics, sang and dance, and comedy, which may include the following shows: i. "ABSINTHE" -Acre-burlesque variety show; ii. "La Vie" -- performed by Les 7 Doigts de la Main (.Circus Arts Theater Company from Montreal); iii. Lessee may also offer additional entertainment offerings including, but not limited to other theatrical shows, programmed music and musical performances. iv. Lessee may also erect, install and operate a trapeze apparatus for performances and public instruction. (b) Normal hours of operation for Lessee's uses/events, as contemplated in subsection 7.1 (a) above, shall commence no earlier than 12:OOpm, with the last event ending no later than 4:00 am, seven day pr:r week, throughout the Term hereof. (c) As an ancillary use to the uses/events described in subsection 7.1(a) above, Lessee shall also be permitted to serve, for sale and consumption within the Demised Premises, food and beverages, including the saieand on-premises serving/consumption of alcoholic beverages. (d) Normal hours of operation for Lessee's sale/serving of food and beverages shall be from noon to 4:00 am daily; provided that Lessee shall not be permitted to sell and/or serve any food and beverages on the Demised Premises when there are no performances and/or events scheduled (as contemplated in subsection 7.1 (a)). (e) Lessee, and/or its food and beverage concessionaire, shall be solely responsible for applying for, obtaining, and maintaining (through the Term _-_--hereof) alto}uorlioens~from_th~_apRr4pr_iate go~cecnmantal__authQrities.__-_ 7.2 It is understood and agreed that the Demised Premises shall be used by the Lessee during the Term of this Agreement only for the purposes set forth in this Section 7, and for no other purposes or uses whatsoever. The Lessee 3 will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by law, ordinance or government regulation, or that may be dangerous to life, limb or property. Lessee may not commit (nor permit) waste on the Demised Premises, nor permit the use of the Demised Premises for any illegal purposes, nor commit a nuisance on the Demised Premises. In the event that the Lessee uses the Demised Premises (or otherwise allows the Demised Premises to be used) for any purposes not expressly permitted herein, or permits andlor allows any prohibited uses as provided herein, then the City may declare this Agreement in default pursuant to Section 18 hereof, or, without notice to Lessee, restrain such improper use by injunction or other legal action. 8. Improvements. 8.1 Lessee accepts the Demised Premises in their present "AS IS" condition and shall, at its own cost and expense, be responsible for the erection, construction, assembly, installation, operation, repair, and maintenance of any and all improvements and non-permanent structures (including, without limitation, the Spiegeltent) furnishings, and/or fixtures, as reasonably necessary for it to carry on its permitted use(s), as set forth in Section 7 hereof. "fhe plans for any and all improvements shall be submitted to the City, through its Tourism and Cultural Development Department, forthe City Manager's (or his authorized designee's) prior review and approval, which will not be unreasonably withheld or delayed. All permanent (fixed) improvements to the Demised Premises shall remain the property of the City upon termination and/or expiration of this Agreement. Upon termination and/or expiration of this Agreement, all personal property and non- permanent improvements, fixtures and/or furnishings (including without limitation the Spiegeltent) shall be removed by the Lessee from the Demised Premises without damage to the Demised Premises. Lessee will permit no liens to attach to the -Demised Premises arising from, connected with, or related to the erection, construction, assembly, installation, operation, repair-, and maintenance of any improvements. Moreover, any assembly and/or construction of structures, fixtures, and/or furnishings, of whatever type and nature, shall be accomplished through the use of licensed, reputable contractors who are acceptable to the City. Any and all permits and or licenses required for fhe installation of all improvements shall be the sole cost and responsibility of Lessee. 8.2 Notwithstanding Subsection 8.1 above, upon termination and/or expiration of this Agreement, any and all alterations or additions made by Lessee to or in the Demised Premises including, without limitation, any and all improvements, non-permanent structures, furnishings and/orfixtures, shall, be promptly removed by Lessee, at its sole cost and expense, and Lessee _____further- hereby_a~crees~_in such event to re_s_tore__the Demised_Premises to_ their original condition prior to the Comrnencement Date of this Agreement. 9. Landlord's Right of Entry. 4 9.1 The City, or its authorized agent or agents, shall have the right, but not the obligation, to enter upon all or any part of the Demised Premises at all reasonable times for the purpose of inspecting same, preventing waste, making such repairs as the City may consider necessary, and for the purpose of preventing fire, and/or addressing other life safety issues. However, the City agrees that, whenever reasonably possible, the City shall provide notice to Lessee, unless the need to enter the Demised Premises is an emergency, as deemed by the City, at its sole discretion, which if not immediately addressed could cause property damage, loss of life or limb, or other injury to persons. Nothing herein shall imply any duty on the part of the City to do any work that under any provisions of this Agreement the Lessee may be required to perform, and the performance thereof by the City shall not constitute a waiver of the Lessee's default. 9.2 If the Lessee shall not be personally present to open and permit entry into all or any part of the Demised Premises at any time, for any reason, and any entry thereon shall be necessary or permissible, the City, or its agents, may enter the Demised Premises by master key (if applicable), or may forcibly enter the Demised Premises without rendering the City or such agents liable therefore. 0.3 Lessee shall furnish the City with duplicate keys to all locks including exterior and interior doors, as applicable, no later than the Commencement Date of this Agreement. Lessee shall not change any locks on the Demised Premises without the priorwritten consent of the City, not to be unreasonably withheld, and in the event such consent is given Lessee sha{I furnish the City with duplicate keys to said locks in advance of their installation. 10. Lessee's Insurance. 10.1 The Lessee shall, at its sole cost and expense, secure prior to the Commencement Date, and shall keep in force at all times during the Term of this Lease, all insurance requirements of the City, asset forth in this Section 10. It is agreed by the parties that the Lessee shall not occupy the Demised Premises until proof of the following insurance coverages has been furnished to and approved by the City's Risk Manager: 10.1.1 Cornprehensive General Liability, in the minimum amount of $1,000,000 per occurrence, with a $2,000,000 per location, for bodily injury and property damage. The fire legal liability shall not be less than $100,000. This policy shall contain a Contractual Liability Endorsement. The City of PJliami Bey=ch, Florida must be named as additional insured parties on this policy. 10.1.2 Em~o~ers Liability_ ca~!erage, _the _amount of $11000 000__per person, for each accident or disease, and Worker's Compensation Insurance in accordance with Florida statutory requirements. 10.1.3 All-Risks property and casualty insurance, written at a mirrimum of 5 80% of replacement cost value and with replacement cost endorsement, covering all of Lessee's personal property in the Demised Premises (including, without limitation, all non-permanent structures, inventory, trade fixtures, floor coverings, furniture and other property removable by Lessee under the provisions of this Agreement). 10.1.4 Liquor Legal Liability Insurance, with policy limits of $2,000,000 per occurrence, naming the City of Miami Beach, Florida, as an additional insured, either as an endorsement to its Comprehensive General Liability policy or as a separate policy. Lessee shall provide the City with evidence of this insurance prior to selling or serving alcoholic beverages at or from the Demised Premises. If Lessee fails to obtain or to continue this coverage, Lessee shall irnmediately discontinue selling and serving alcoholic beverages from the Demised Premises. 10.2 Proof of these coverages must be provided by submitting original certificates of insurance to the City's Risk Manager. All policies must provide thirty (30) days written notice of cancellation, lapse, reduction in amount of coverage, or any other adverse change to the policy or to the insured, to both the City's Risk Manager and the City's Tourism & Cultural Development Department, at 1700 Convention Center Drive, Miami Beach, Florida, 33139. All insurance policies shall be issued by companies authorized to do business under the laws of the State of Florida and must have a rating of B+:VI or better per A.M. Best's Key Rating Guide, latest edition, and certificates are subject to the approval of the City's Risk Manager. All coverages/policies required herein must remain current at all times during the Term herein. 11. Property Taxes and Assessments For the purposes of this Section and other provisions of this Agreement: 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 Demised Prerises and/or the tax lot which may include the Demised Premises, and (ii) any expenses incurred by the City in obtaining a reduction of any such taxes or assessments. 11.2 The term "Property Tax Year" shall rriean the period of twelve (12) calendar months, beginning on January 1St of each year. 11.3 City acknowledges that the Demised Premises are currently tax-exempt. Notwithstanding the preceding, if as a result of any of Lessee's use of the Demised Premises, as contemplated herein, such use triggers a taxable _~vent~ fherL Lessee_shall,_u~olt~em~nd_from_the-Gity_Y~~rosp~ nsible_ fo~it~___ proportionate share of said Pro;~erty 1"axes, to be payable as set forth in subsection 11.4 below. 11.4 Lessee shall pay, as Additional Rent pursuant to Section 3.2_, for such 6 Property Tax Year, an amount ("Property Tax Payment") equal to Lessee's proportionate share of the Property Taxes (if any) for such Property Tax Year; said proportionate share to be determined by the City based upon the ratio of the Demised Premises to the tax lot. If a Property Tax Year ends after the expiration or termination of the Term of this Agreement, the Property Tax Payment therefore shall be prorated to correspond to that portion of such Property Tax Year occurring within the Term of this Agreement. The Property Tax Payment shall be payable by Lessee immediately upon receipt of notice from the City. A copy of the tax bill(s) or other evidence of such taxes issued by the taxing authorities, together with the City's computation of the Property Tax Payment, will be made available to Lessee rmce received from the taxing authorities, if requested by Lessee. Lessee shall pay any difference in the amount between the estimated property taxes and the actual property taxes to the City immediately upon receipt of request for said payment from the City. 12. Assignment and Subletting. Lessee shall not have the right to assign or sublet all or any part of the Demised Premises withoufi the prior written consent of the City which consent, if given at a[I, shall be, at the City's sole and absolute discretion. 13. Operation, Maintenance and Repair. 13.1 Excluding the public restrooms and the power distribution panel located on or near the Demised Premises, which the City shall continue to operate and maintain in accordance with its operation/maintenance of similar public facilities, Lessee shall be solely responsible forthe operation, maintenance and repair of the Demised Premises and all of Lessee's improvements, structures, fixtures, furnishings, equipment, and other personal property thereon, so as to rriaintain said Premises and all improvements thereon in first-class working order and condition, ordinary wear and tear excepted. 13.2 Excluding the public restrooms and the power distribution panel located on or near the Demised Premises, which the City shall continue to operate and maintain in accordance with its operation/maintenance of similar public facilities, all damage or injury of any kind to the Demised Premises and to any fixtures, structures, furnishings, equipment, and other personal property thereon, except damage caused by the wrongful acts or negligence of the City, shall be the obligation of Lessee, and shall be repaired, restored or replaced promptly by Lessee, at its sole cast and expense, to the satisfaction of the City. 13.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to or better than the original work or installations and shall be done in good and workmanlike manner. 13.4 If Lessee faits to make such repairs or restorations or repl:=cements, the same may be made by the City, at tl~e expense of Lessee, and all sums spent and expenses incurred by the City shall be collectable by the City and 7 shall be paid by Lessee within ten (10) days after rendition of a bill or statement thereof. 13.5 It shall be Lessee's obligation to insure that any renovations, repairs and/or improvements made by Lessee pursuant to this Section 13 and this Lease comply with all applicable building codes and life safety codes of governmental authorities having jurisdiction. 13.6 Lessee Responsibilities for Utilities. Lessee is solely responsible for, and shall promptly pay when due, all charges for water, electricity, and any other utility service provided to the Demised Premises; provided, however, that the City shall be responsible for any connection fees and/or other "hook-up" fees such that the City will ensure that said utilities have been connected and are available for Lessee's use on the Demised Premises. In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Lessee to pay for such utility services when due, City may elect to pay same, whereby Lessee agrees to promptly reimburse the City upon demand. In no event, however, shall the City be liable, whether to Lessee and/or any third parties, for an interruption or failure in the supply of any utilities or utilities services to the Demised PremisesLexcept to the extent that such interruption or failure is caused by the negligence or willful misconduct of the City (and, notwithstanding such event, the City shall at no time be liable to third parties). 13.7 Payment of electricity and/any and all other utilities used on and/or provided to the Demised Premises utilized during the previous month shall be made to City with the current monthly rental payment. Calculation of payment for electrical usage shall be based on the actual kilowatt hours used times an average rate per kilowatt hour and any applicable demand charges. An electrical sub-meter installed by the City will determine the actual usage. The rate per kilowatt hour will be determined monthly, as of December 14th, 2007, using Florida Power & Light's (FP&L) current billing rates and billing structure for the Demised Premis~:s. Lessee will arrange to be billed directly by FPL for its electrical usage. 13.8 LESSEE HEREQY ACKNOWLEDGES AND AGREES THAT THE DEMISED PREMISES ARF QEING LEASED IN TF-IEIR PRESENT "AS IS" CONDITION. LESSEE REPRESENTS AND AGREES THAT, PRIOR TO THE COMMENCk~MEIJT DATE, LESSEE.. HAS INSF~FCTED THE DEMISED PREMISES AND Hi~REC~Y ACCEPTS THE DEMISED PREIJItSES "AS-IS, ~`Y~lHERE-Iv; AND WITH ALL FAULTS." ~~_9_less~e_shall_he_requiredr_at~ts.~ole_cnst and_~xpensc~ fn~pro_viding-security for the Demised Prerises. Lessee shall provide security personnel or shall contract with a security guard during operating hours and non-operating hours. 8 13.10 City shall have no liability to Lessee for any loss of personal property fixtures, equipment, or other property arising from theft or vandalism upon the Demised Premises. 14. Governmental Regulations. The Lessee covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City governments, and any and all of their departments and bureaus applicable to the Demised Premises and Lessee's proposed use(s) thereof, and shall also comply with and fulfill all rules, orders, and regulations for the prevention of fire, all at Lessee's own cost and expense. The Lessee shall pay all cost, expenses, claims, fines, penalties, and damages that may be imposed because of the failure of the Lessee to comply with this Section, and shall indemnify and hold harmless the City from all liability arising from each non-compliance. 15. Liens. Lessee will not permit any mechanics, laborers, or materialman's liens to stand against the Demised Premises or improvements thereto for any labor or materials to Lessee or claimed to have been furnished to Lessee's agents, contractors, or sub-Lessees, in connection with work of any character performed or claimed to have perforrrred on said Premises, or improvements, by or at the direction or sufferance of the Lessee; provided however, Lessee shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Lessee shall give the City reasonable security as may be demanded by the City to insure payment thereof and prevent sale, foreclosure, or forfeiture of the Premises, or improvements, by reasons of such non-payment. Such security need not exceed one and one half (1'/z) times the amount of such lien or such claim of lien. Such security shall be posted by Lessee within ten (10) days of written notice from the City, or Lessee may "bond off' the lien according to statutory procedures. Lessee will immediately pay any judgment rendered with all proper cost and charges and shall have such lien released or judgment satisfied at Lessee's own expense. 16. Enforcement. Lessee agrees to pay the Base Rent, Additional Rent, and any otl~er amounts, as may be due and payable by Lessee under this Agreement, at the time and in the manner provided herein, and should said rents and/or other additional amounts due herein, at any time remain due and unpaid for a period of fifteen (15) days after the same shall become due, the City may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately, or the City may pursue any other remedies enforced by law. 17. Condemnation. 17.1 If at any time during tl~e Term of this Agreement, all or any part or portion of the Demised Premises is taken, appropriated, or condemned by reason of Eminent Domain proceedings (except if the Eminent Domain proceedings are initiated by the City of Miami E3each), then this Agreement shall be 9 terminated as of the date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by reason of this Agreement or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date, and the Lessee shall pay any and all rents, additional rents, utility charges, or other costs for which it is liable under the terms of this Agreement, up to the date of such taking. 18. Default. 18.1 Default by Lessee: At the City's option, any of the following shall constitute an Event of Default under this Agreement: 18.1.1 The Base Rent, Additional Rent, or any installment thereof, is not paid promptly when and where due within fifteen (15) days of due date, and if Lessee shall not cure such failure within three (3) days after receipt of written notice from the City specifying such default; 18.1.2 Any other payment provided for under this Agreement is not paid promptly when and where due; 18.1.3 The Demised Premises shall be deserted, abandoned, or vacated; 18.1.4 The Lessee shall fail to comply with any material term, provision, condition or covenant contained herein other than the payment of rent and shall not cure such failure within ten (10) days after the receipt of written notice from the City specifying any such default; or such longer period of time acceptable to the City, at its sole discretion; 18.1.5 Receipt of notice of violation from any governmental authority having jurisdiction dealing with a law, code, regulation, ordinance or the like, which remains uncured for a period of ten (10) days from its issuance, or such longer period of time acceptable io the City, at its sole discretion; 18.1.6 Any petition is filed by or against Lessee under any section or chapter of the Bankruptcy Act, as amended, which remains pending for more than thirty (30) days, or any other proceedings now or hereafter authorized by the laws of the United States or of any state for the purpose of discharging or extending the time for payment of debts; 1.7__ Lessee shall become insolvent;-., 18.1.8 Lessee shall make an assignment for benefit of creditors; 18.1.9 A receiver is appointed for Lessee by any court and shall not be 1U dissolved within thirty (30) days thereafter; or 18.1.10 The leasehold interest is levied on under execution. 18.1.11 Failure to comply with any term and/or condition of the Special Event Permit, as contemplated pursuant to Section 39 hereof. 19. Rights on Default. 19.1 Rights on Default: In the event of any default by Lessee as provided herein, the City shall have the option to do any of the following in addition to and not in limitation of any other remedy permitted by law or by this Agreement: 19.1.1 Terminate this Agreement, in which event Lessee shall immediately surrender the Demised Premises to the City, but if Lessee shall fail to do so the City may, without further notice, and without prejudice to any other remedy the City may have for possession or arrearages in rent or damages for breach of contract, enter upon the Demised Premises and expel or remove Lessee and its effects in accordance with law, without being liable for prosecution or any claim for damages therefore, and Lessee agrees to indemnify and hold harmless the City for all loss and damage which the City may suffer by reasons of such Agreement termination. 19.1.2 Declare the entire amount of the Base Rent and Additional Rent which would become due and payable during the remairiderof the Term of this Agreement to be due and payable immediately, in which event Lessee agrees to pay the sar;~e at once, togetherwith all rents therefore due, at the address of the City, as provided in the Notices section of this Agreement; provided, however, that such payment shall not constitute a penalty, forfeiture, or liquidated damage, but shall merely constitute payment in advance of the rents for the remainder of said Term and such payment shall be considered, construed and taken to be a debt provable in bankruptcy or receivership. 19.1.3 Take possession of any personal property owned by Lessee on said Demised Premises and sell the same at public or private sale, and apply same to the payment of rent due, holding the Lessee liable for the deficiency, if any. 19.1.4 It is expressly agreed and understood by and between the parties _______.__her_eto_that~ny_installrnen.ts Qflent_a~ctuir~_unsler_th~provisions. of this Agreement 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 Lessee. Any 11 failure on the City's behalf to enforce this Section shall not constitute a waiver of this provision with respect to future accruals of past due rent. 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. In addition, there will be a late charge of Fifty Dollars ($50.00) for any payments submitted after the grace period. 19.1.5 If Lessee shall default in making any payment of monies to any person or for any purpose as may be required hereunder, the City may pay such expense, but the City shall not be obligated to do so. Lessee upon the City's paying such expense shall be obligated to forthwith reimburse the City for the amount thereof. All sums of rnoney payable by Lessee to the City hereunder shall be deemed as rent far use of the Demised Premises and collectable by the City from Lessee as rent, and shalt be due from Lessee to the City on the first day of the month following the payment of the expense by the City. 19.1.6 The rights of the City under this Agreement shall be cumulative but not restricfiive to those given by law and failure on the part of the City to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 19.2 f)efault by the City: The failure of the City to perform any of the covenants, conditions and agreements of this Least: which are to be performed by the City and the continuance of such failure for a period of ten (10) days after notice thereof in writing from Lessee to the City (which notice shall specify the respects in which Lessee contends that the Cifiy failed to perform any such covenant, conditions and agreements) shall constitute a default by the City, unless such default i ,one which cannot be cured within ten (10) days because of circumstances beyond the City's control, and the City within such ten (10) day period shall have commenced and thereaftershall continue diligently to prosecute all actions necesscry to cure such defaults. However, in the event the City fails to perform within the initial 10 day period provided above, and such failure to perform prevents Lessee from operating its business in a customary manner and causes an undue hardship for tho Lessee, then such failure to perform (regardless of circumstances beyond it:', control) as indicated above, shall constitute a default by the Gity. 19.3 Lessee's Rights on Default: tf an event of the City's default shall occur, Lesse~:.~, to the fullest exent ___permitted by lawy__shall have the._r~ht_ to_~ursue_any__~rlsL__alLremedies__________ available at lavr or in equity, including the right to sue for and collect damages, including reasonable attorney fees and costs, to terrinate this Agreement (and all of its obligations hereunder by giving notice of such election to the City, whereupon this Agreement shall terminate as of the date 12 of such notice), to specifically enforce Lessee's righfis; and/or to enjoin the City. 20. Indemnity Against Costs and Charges. llntentionally Omittedl 21. Indemnification Against Claims. 21.1 The lessee shall indemnify and save the City harmless from and against any and all claims or causes of action (whether groundless or otherwise) by or on behalf of any person, firm, or corporation, for personal injury or property damage occurring upon the Demised Premises or upon any other land or other facility or appurtenance used in connection with the Demised Premises, occasioned in whole or in part by any of the following: 21.1.1 An act or omission on the part of the Lessee, or any employee, agent, contractor, concessionaire, invitee, guest, assignee, sub lessee, or subcontractor of the Lessee; 21.1.2 Any misuse, neglect, or unlawful use of the Demised Premises by Lessee, or any employee, agent, contractor, concessionaire, invitee, guest, assignee, sub lessee, or subcontractor of the Lessee, but not to include trespassers upon the Demised Premises; 21.1.3 l'3ny breach, violation, or non-performance of any undertaking of the Lessee under this Agreement; 21.1.4 Anything arising out of the use or occupancy of the Demised Premises by the Lessee or anyone holding or claiming to t}old through ar under this /agreement. 21.2 Subject to City's maintenance obligations for the public restrooms and power cistribution panels as sot forth in sections 13.1 and 13.2, Lessee agrees to pay all damages to the Demised Premises and/or other fcycilities used in connection therewith, caused by the t_essee or any employee, guest, or invitee of the Lessee. 21.3 Notwithstanding subsections 21.1 and 21.2, Lessee shall not be obligated to indemnify and hold the City harmless for any claims resulting from the negligence or willful misconduct of the City, its officers, agents, and employees. _2__1 4 _The provisions of this S_e_ction_21_ shall sur~yive_~x~iration_or terrr~na.tiQn_Qf_ this Lease. 22. Hazardous substanc_eu. City, to the best of its knowledge, information, and belief but without making 13 independent inquiry, does not know of any substance, chemical or waste (collectively, "substance") on the Demised Premises that is identified as hazardous, toxic or dangerous in any applicable Federal, State or local law or regulation. Lessee shall not introduce or use any such substance on the Demised Premises in violation of any applicable law. In the event Hazardous Substances, as said term is hereinafter defined, are discovered on, in or under the Demised Premises as of the Commencement Date or thereafter, and such Hazardous Substances is located on, in or under the Demised Premises due to an act of or as a result of fault or negligence of Lessee, Lessee, at its sole expense, shall, remove all such Hazardous Substances in accordance with all applicable laws, rules, ordinances, and regulations ("Removal"). Lessee (the "Indemnifying Party")shall indemnify and hold City, (the "Indemnitee") harmless against any claims arising out of such Hazardous Substances including all of Indemnitee's attorney's fees and costs ("Indemnity"). For the purposes hereof, the term "Hazardous Substances" shall mean pollutants, contaminants, toxic or hazardous substances or wastes, oil or petroleum products, flammable or any other substances whose nature and/or quantity of existence, use, release, manufacture or effect renders it subject to Federal, state or local environmental, health, community awareness or safety laws or regulations, now or hereafter enacted or promulgated by any governmental authority or court ruling, or any investigation, remediation or removal. Further, Hazardous Substances shall be required to be removed from the Site only if required by the proper governmental authorities. 23. Signs and Advertising. The Lessee shall not permit the painting and display of any signs, plaques, lettering or advertising material of any kind on or near the Demised Premises without first having obtained the prior written consent of the City. All signage shall comply with standards with standards established by the City and comply with all applicable building codes, and any other municipal, County, State and federal laws. 24. Dama~ae to the Demised Premises/Force Majeure. 24.1 If the Demised Premises shall be damaged by the elements or other casualty not due to Lessee's negligence, or by fire, whether or not said Demised Premises are rendered untenantable or unfit for Lessee's intended uses herein, whether in whole or part, as determined by the City, in its sole discretion, the City shall have the option, but not the obligation, to cause such damage to be repaired, and the rent meanwhile shall be abated. However, the City shall have the right, to be exercised by notice in writing delivered to Lessee within fifteen (15) days from and after said occurrence, to elect not to reconstruct the destroyed and/or damaged Demised Premises and, in such event, this Agreement and the tenancy hereby created shall cease as of the date of said occurrence, with the rent to be adjusted as of such date. Upon such termination, the provisions of Section 29 shall apply. 24.2 Force Ma~P) .are. No party will be liable or responsible to the other par'iy far any delay, damage, loss, failure, or inability to perform caused by "force majeure" if 14 ~iotice is provided to the other party within ten (10) days of the date on which such party gains actual knowledge of the event of "force majeure" that such party is unable to perform. The term "force majeure", as used in this subsection, means the following: an act of God, strike, war, public rioting, terrorism, unusual tidal activity affecting the use of the Demised Premises, fire, hurricane, explosions, epidemics, earthquakes, floods, civil disturbances, and any other cause which is not reasonably within the control of the party whose performance is to be excused, and by which the exercise of due diligence could not be reasonably prevented or overcome. 25. Quiet Enjoyment. The Lessee shall enjoy quiet enjoyment of the [demised Premises and shall not be evicted or disturbed in possession of the Demised Premises so long as Lessee complies with the terms of this Agreement. 26. Waiver. 26.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of the City to insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Agreement, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 26.2 A waiver of any term expressed herein shall not be irrsplied by any neglect of the City to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 27. Notices. The addresses for all notices required under this Agreement shall be as follows, or at such other address as either party shall be in writing, notify the other: CITY: City Manager City of Miami Beach 1700 Convention Center Drive PViiami Beach, Florida 33139 With copies to: Tourism & Cultural Developn`ient Max Sklar, Director _-- -_ _-_- --_ _ __ ____ _-City_ of Mia__mi Beach ___-- 1700 Convention Cente.~ Drive Miami Beach, Florida 33139 LESSEE: Executive Director 15 Spiegel LP 22 West 19t" Street,5t" Floor New York, NY 10011 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. Limitation of City's Liability. 28.1 "("he City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages (but expressly excluding any action in tort) due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of Thirty Three Thousand ($33,000.00) Dollars and 00/100. Lessee hereby expresses its willingness to enter into this Agreement with the Lessee's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of Thirty Three Thousand ($33,000.00) Dollars and 00/100. Accordingly, and notwithstanding any other term or condition of this Agreement, Lessee hereby agrees that the City shall not be liable to Lessee for damage in an amount in excess of Thirty Three Thousand ($33,000.00) Dollars and 00/100 for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this Section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. 28.2 IN NO EVENT SHALL THE CITY BE LIABLE FOR LOSS OF PROFITS OR OTHER BUSINESS LOSS, (JR ANY OTHER INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH LESSEE'S USE OF THE DEMISED PREMISES OR THIS AGREEMENT, WHETHER UNDER CONTRACT, TORT, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY. THIS LIMITATION SHALL APPLY EVEN IF THE CITY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 28.3 The City and the Le see agree that the provisions of Section 28.2 shall not apply in the event of loss or damage sustained by the Lessee that: i) arises nut of the suspension of amenities to the Demised Premises caused by the gross negligence or willful misconduct of tl~te City, its officers, agents, and employees. 29. Surrender of the Demised Premises. The Lessee shall, on or before the last day of the Term herein, or the sooner term_ination_ th~~eQf,~~ac~abl~_artsL~uietLy_Lea;ce~urrender_and_yielc~upon_to_the_ __ ___ City the Demised Premises, free of ail liens, claims grid encumbrances and rights of others, and shall restore said Premises to their original condition prior to the Commencement Date of this Lease. Any property which pursuant to the provisions of this Section is removable by Lessee on or at the Demised Premises upon the 16 termination of this Agreement and is not so removed may, at the option of the City, be deemed abandoned by the Lessee, and either may be retained by the City as its property or may be removed and disposed of at the sole cost of the Lessee in such manner as the City may see fit. If the Demised Premises are not surrendered at the end of the Term as provided in this Section, the Lessee shall make good the City all damages which the City shall suffer by reason thereof, and shall indemnify and hold harmless the City against all claims made by any succeeding Lessee or purchaser, so far as such delay is occasioned by the failure of the Lessee to surrender the Demised Premises, as and when herein required. Failure to vacate premiseswithin seven (7) days of last performance will result in accrual of Base Rent for each additional week. 30. Attorneys Fees. [Intentionally Omitted] 31. Venue. This Agreement shall be enfiorceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. The City and Lessee hereby knowingly and intentionally waive the right to trial by jury in any action or proceeding that the City and Lessee may herein after institute against each other with respect to any matter arising out of or related to this Agreement. 32. Additional Terms & Conditions. 32.1 City shall be responsible for: 32.1.1 Using reasonable efforts to ensure that Lessee has access to water, electricity, drainage and sewerage on the Demised Premises; provided however, that Lessee shall be solely responsible for payment of all utility charges (except connection/hook-up fees), and provided further that the City shall not be liable to Lessee or third parties for an interruption or failure in the supply of any utilities or utilities services to the Demised PremisesLexcept to the extent that such interruption or failure is caused by the negligence or willful misconduct of the City (and, notwithstanding such event, the City shall at no time be liable to third parties). 32.1.2 Providing Lessee access to the public restrooms located on the Demised Premises throughout Lessee's hours of __ _____- oper~tion.Ypr_QVicLed_th~t_said restrooms_have been_complet~:_d__ and received a Final Certificate of Completion from the City of Miami Beach Building Department prior to the Commencement Date. 1i 32.1.3 Subject to the provisions of subsection 32.1.2 above, using reasonable efforts to ensure that the public rostrooms located on the Demised Premises are cleaned and maintained in accordance with the City's routing cleaning/maintenance of other comparable public facilities, during the City's standard hours, which are from 3 am to 6 pm, Monday -Sunday. Lessee will be solely responsible for cleaning and maintaining said public rostrooms outside of the City's standard operating hours. 32.1.4 Providing promotional support to the Lessee for its scheduled events, including but not be limited to, listing the events err City of Miami Beach websites; promoting events in the City's weekly "e-blast"; including the events in the City's community advertising space in the Miami Herald; including the events in the City's bi-monthly magazine; promoting the events as part of the City's bi-weekly NP~t and NBC promotional spots; promoting the events in conjunction with Lessee's public relations company; and waiving City of Miami Beach light pole banner permit fees. 32.1.5 Providing Lessee with sufficient space on or in close proximity of the Demised Premises for dumpsters. 32.2 Lessee shall be responsible for: 32.2.1 Covering all costs associated with presentation of the live performances, musical events, and any and all other events contemplated herein including, without limitation, the provision of all required performance venues, including but not limited to the - Spiegeltent. 32.2.2 Selecting, training, supervising and directing all employees, contractors, concessionaires and any and all other personnel (which shall be employees and/or contractors of Lessee or third parties and not the City) in sufficient number and in such manner as is necessary and/or appropriate for Lessee to satisfy its obligations under this Agreement, and to operate and maintain its events, businesses, and operations, as cotemplated herein, in a first-class manner. 32.2.3 All j~:nitorial and other maintenance, repair and upkeep of the Demised Premises and all improvements thereon including, without limitation, the following structures on the Demised Premises; three(3) or more dressing rooms; two(2) or more F~ortable bathroarns for _Lessee°s-stafffood-and-beverage {~roparation-area-;~.ervinc~ station-;- ticket booth; trapeze ~.pparatus; perimeterfence; and "beer garden". 32.2.4 Ensuring that the area surrounding the exterior perimeter of the Demised Prerniscs (vrithin a 50 foot radius of tl~e Premises), but 18 excluding the public restrooms during the City's normal operating hours) are kept free of any trash and debris that might emanate from the Premises. 32.2.5 Running promotion and providing event coordination, logistics, and staff, as well as providing a detailed event flow prior to all scheduled events. 32.2.~i All set-up and tear down of structures, fixtures, furnishings, equipment, and zany and all other personal property. 33. Sponsorship. The City of Miami Beach will be recognized as a sponsor of the Spiegeltent. As such, the City will receive recognition (logo or line listing) in all print advertising and promotion, electronic, print, on-site, and media promotions. 34. Rent Free City Use. City may use the Demised Premises rent free, subject to availability and pre- scheduling with Lessee. In respect of any such use, the City shall be responsible for any direct costs associated with its use of the Demised Premises. 35. Complimentar r~Cit~Tickets. Lessee agrees to provide fihe City with a minimum of six (5) complimentary tickets for each week during the Term hereof, for the Mayor, City Commissioners, City Manager, City Attorney, or other City Staff. Tickets will be reserved at the box office until two hours before fihe advertised time of each show. !f the City intends to use the tickets, Lessee must be notified at least 48 hours prior to the show. All tickets requested under this Section will be provided subject to ticket availability. 36. Resident Ticket Program. Lessee shall provide a resident ticket program, offering first priority to pre-purchase tickets for residents of the City, at a fifteen percent (15%) discount. The priority/discount offer will be applied to the purchase of a maximum of two tickets per household and will be limited to performances occurring within the first four (4) weeks of the event. 1~he City will provide Lessee with avenues to promote the offer (i.e. City website and newsletters). 37. Senior Ticket Program. Lessee shall provid~:: 10 senior tickets for each show at a fifteen percent (15%) discount. Seniors must be 62 years of age or older and reside in the City of Miami Beach to qualify. The Senior Ticket discount will be applied to the purchase of Er maximum of two tickets per t~ouseholci. The City will provide Lessee with avenues to pror~note the offer (i.e. City website and newsletters). '~H~ ---~hitdr-~~'~~-ro~ram~n- inch. Lessee may offer free children's programming on weekend days, or will make fihe Demised Premises available rent free for the City to program free children's programming. In the event that Lessee makes the Demised Premises available to the City, the City agrees to be responsik~le for any direct costs associated with its 19 use of the Demised Premises. 39. Special Event/Film Permit. As a condition to this Agreement, Lessee must obtain a Special Event Permit and/or Film Permit, which includes building, structural, electrical permits. All fees for said Permit(s) will be waived, except for hard costs associated with City sE~rvices (i.e. Police, Fire, Sanitation, utilities). All hard costs shall be the sole responsibility of Lessee. Issuance of such Special Event Permit shall be subject to and contingent upon Lessee meeting all the requirements and conditions of the City's Guidelines, other than payment of fees as specified herein. Copies of the City's Special Events and Film/Print Guidelines are attached hereto. IN -SHE EVENT OF LESSEE'S FAILURE TO COMPLY WITH ANY TERM AND OR CONDITION OF THE AFORESTATED PERMIT, SUCH DEFAULT SHALL BE DEEMED AN EVENT OF DEFAULT HEREUNDER. 40. Miscellaneous. 40.1 GOVERNING LAW: This Agreement shalt be governed by, construed and enforced in accordance with fihe laws of the State of Florida. The parties hereby waive trial by jury. 40.2 ENTIRE AGREEMENT: This Agreement contains the entire agreement between the parties. The parties agree that the execution of this Agreement has nat been induced by any promises, understandings or representations not expressed herein and fihere are no collateral agreements between thei~~r dealing with the subject matter of this Agreement. 40.3 COUNTERPARTS: City and Lessee acknowledge that this Agreement has been or may be executed in several counterparts, each of which shall be deemed an original and a!I such counterparts together shall constitute one and the same instrument. 40.4 RELATIONSH IP OF PARTIES: The Parties to the Agreement are independent contractors. tJeither party is an agent, representative or partner of the other party. Neither party shall have any right, power or authority to enter into any agreement for or on behalf or, or incur any obligation or liability or to otherwise bind the other party. This Agreement shall not be interpreted or construed to create an association, agency, joint venture or partnership between the parties or to impose any liability attributable to such relations upon any party. 40.5 USE OF TRADEMARKS: The Parties to this Agreement are hereby authorized to use the other party's trademarks, label designs, artwork and other symbols and devices associated with the products in advertisting and promoting this Agreement dLrringthe Term of this Agreement, provided each party shall have --the ~tf>ht to approve-all sE=ck~-uses-in~uri#ingin-~dva~rc~. -- -- - ------------- 40.6 This Agreement contains all agreements, promises and understandings between City and Lessee and no verbal or oral agreement, promises or understandings relating to fihe Demised Premises shall be binding upon either 20 City or Lessee in any dispute, controversy or proceeding at law. Any addition, variation or modification to this Agreement shall be void and ineffective unless made in writing and signed by the parties. If any term or provision, or any portion thereof, of this Agreement, or the application thereof to any person or circumstances shall, to the extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances, other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law. 40.7 This Agreement and the obligations of fihe parties, and the performance thereof shall be governed, interpreted, constructed and regulated by the laws of the State of Florida. 40.8 This Agreement shall inure to the benefit of and be binding upon the heirs, personal representatives, successors and assigns of the parties hereto. 40.9 ~leither this Agreement nor any notice of it shall be recorded in any Public Records. 40.10 Whenever under this F:greemFnt the consent or approval of either party is required or a determination must be made by either party, no such consent or approval shall be unreasonably withheld or delayed, and all such deterrriinatiorrs shall be made on a reasonable basis and in a reasonable manner. 40.11 If any article, paragraph, section, provision, sentence, clause, or portion of this Agreement is determined to be illegal, invalid or unenforceable, such determination shall in noway affect the legality validity or enforceability of any article, paragraph, section, provision, sentence, clause or portion of this Agreement and any such affected portion or provision shall be modified, amended, or deleted to the extent possible and permissible to give the fullest effect to the purposes of the parties and of this Agreement, ar~d the parties hereby declare that they would have agreed to the remaining parts of this Agreement if they had known that such provisions or portions thereof would be determined to be illegal, invalid, or unenforceable. 40.12 Captions and headings are for convenience of reference only and in noway shall be used to construe ar modify the provisions :~,et forth in this Agreement. 2i IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by the respective duly authorized officers and the respective corporate seals to be affixed this f $ TGG~~ day of J"~~t ~ y , 2007. ATTEST: BY: ~~~ Robert Parcher, City Clerk ATTEST: " . ~ ~: ~ ~. BY: Secretary ~, (Print Name) CORPORATE SEAL (affix here) CITY OF MIAMI BEACH, FLORIDA BY: \ ~r- ~ Jo; ge M. onzalez, ity a ager SPIEGEL, L~. '~ ;` f ~ ~ ~~ r `°~. ~ BY: 7 President F:\info\$ALLWIax\TCD\Special Events\Speigeltent\Spiegel Lease FINAL.doc APPROVED AS TO FORM & LANGUAGE 8~ FO~(ECUTION ,/ '~ ,,' ~- 7 1l G~ - I ~ X1 ~U" 22