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POLICE-FIRE SUB STATION Jle: PDt COMMERCIAL LEASE This lease is made between RSGN, INC. (1217 N. Fort Hamson Ave., Bldg. D., Clearwater, FL 33755), herein cal/ed Lessor, and THE CITY OF CLEARWATER (P.O. Box 4748, Clearwater, FL 33756), herein cal/ed Lessee. Lessee hereby offers to /ease from Lessor the premises situated in the City of Clearwater, County of Pinel/as, State of Florida, described as 1217 N. Fort Harrison Avenue, # A, upon the fol/owing TERMS and CONDITIONS. 1 . Tenns and Rent. Lessor demises the above premises for a term of THREE years, commencing October 1, 2002 and terminating on September 30, 2005 or sooner as provided herein at the annual rental of Eight Thousand, Four Hundred Dollars ($8,400.00), payable in equal installments of Seven Hundred Dollars ($700.00) in advance on the first day of each month for that month's rental, during the term ofthis lease. All rental payments shall be made to Lessor, at the address specified herein. 2. Use. Lessee shall use and occupy the premises as a policelfire substation. The premises shall be used for no other purpose. Lessor represents that the premises may lawfully be used for such purpose. Lessor and Lessee shall have joint use of the lockable utility room, which is used for storage. 3. Care and maintenance of Premises. Lessee acknowledges that the premises are in good order and repair, unless otherwise indicated herein. Lessor shall be responsible for all repairs, including but not limited to the roof, exterior walls, and structural foundations. Lessee shall change the air conditioner filters evefy thirty (30) days. Lessor shall supply the necessary filters. Lessee shall supply A.B.C. rated fire extinguishers and have same inspected annually. Lessee wil/ strip and wax the floors at least once per year, beginning in October 2002. 4. Assignm'nt and Subletting. Lessee shall not assign this lease or sublet any portion of the premises without prior written consent of the Lessor, which shall not be unreasonably withheld. Any such assignment or subletting without consent shall be void; and, at the Lessor's option, Lessor may terminate this lease. 5. Utilities. All applications and connections for necessary utility services on the premises shall be made in the name of Lessee only. Lessor shall be responSible for the cost of water, sewer, and garbage services. Lessee shall be liable for the cost of electricity and telephORe services. 6. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter upon the premises at reasonable times and upon reasonable notice, for the purpose of inspecting the same, and will permit Lessor at any time within sixty (60) days prior to the expiration of this lease, to place upon the premises any usual "To Let" or "For Lease" signs, and permit persons desiring to lease the same to inspect the premises thereafter. 7. Possession. If Lessor is unable to deliver possession of the premises at the commencement hereof, Lessor shall not be liable for any damage caused thereby nor shall this lease be void or voidable, but l.essee shall not be liable for any rent until posseSSion is delivered. Lessee may terminate this lease if posseSSion is not delivered with TEN days of the commencement of the term hereof. 8. Eminent Domain. If the premises or any part thereof of any estate therein, or any other part of the building materially affecting Lessee's use of the premises, shall be taken by eminent domain, this lease shall terminate on the date when title vests pursuant of such taking. The rent, and any additional rent, shall be apportioned as of the termination date, and any rent paid for any period beyond that date shall be repaid to Lessee. Lessee shall not be entitled to any part of the award for such taking or any payment in lieu thereof, but Lessee may file a claim for any taking of fixtures and improvements owned by Lessee and for moving expenses. 1 9. Destruction of Premises. In the event of a partial destruction of the premises during the term hereof, from any cause, Lessor shall forthwith repair the same, provided that such repairs can be made within sixty (60) days under existing govemmentallaws and regulations, but such partial destruction shall not tenninate this lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which the making of such repairs shall interfere with the business of Lessee on the premises. If such repairs cannot be made within said sixty (60) days, Lessor, at his option, may make the same within a reasonable time, this lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect to make such repairs which cannot be made within sixty (60) days, this lease may be terminated at the option of either party. In the event that the building in which the premises may be situated is destroyed to an extent of not less than one-third of the replacement costs thereof, Lessor may elect to terminate this lease whether the premises be injured or not. A total destruction of the building in which the premises may be situated shall terminate this lease. 10. Lessor's Remedies on Default. If Lessee defaults in the payment of rent, or any additional rent, or defaults in the perfonnance of any of the other covenants or conditions hereof, Lessor may give Lessee notice of such default; and if Lessee does not cure any such default within FIFTEEN days after the giving of such notice (or If such other default is of such nature that it cannot be completely cured within such period and If Lessee does not commence such curing within THIRTY days and thereafter proceed with reasonable diligence and in good faith to cure such default), then Lessor may terminate this lease on not less than THIRTY days notice to Lessee. On the date specified in such notice, the term of this lease shall terminate, and Lessee shall then quit and surrender the premises to Lessor. If this lease shall have been so terminated by Lessor, Lessor may at any time thereafter resume possession of the premises by any lawful means and remove Lessee or other occupants and their effects. 11. Security Deposit. Lessee shall deposit with Lessor on the signing of this lease the sum of Five Hundred and Fifty Dollars ($550.00) as security for the performance of Lessee's obligations under this lease, including without limitation the surrender of possession of the premises to Lessor as herein . provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of this lease. Lessor acknowledges receipt of this amount paid by Check # 208368 on November 7, 1996. 12. Taxes, Common Area Maintenance, and Insurance. Lessor shall be responsible for all taxes, common area maintenance, and insurance for the premises. Lessee shall be responsible for providing insurance to cover Lessee's contents. 13. Attorney's Fees. In case suit should be brought for recovery of the premises, or for any sum due hereunder, or because of any breach of any of the provisions herein, the prevailing party shall be entitled to recover attorney's fees and costs. 14. Waiver. Failure of Lessor to enforce any tenn hereof shall be deemed to be a waiver. 15. Notices. Any notice which either party mayor is required to give, shall be given by mailing the same, postage prepaid, to Lessee at the premises, or Lessor at the address specified above, or at such other places as may be designated by the parties from time to time. 16. Heirs, Assigns. Successors. This lease is binding upon and inures to the benefit of the heirs assigns and successors in interest to the parties. 17. Option to Renew. Provided that Lessee Is not in default in the performance ofthis lease, Lessee shall have the option to renew the lease for an additional term, to be negotiated, commencing at the expiration of the initial lease term. All of the tenns and conditions of the lease shall apply during the renewal term except that the monthly rent shall be negotiated. The option shall be exercised by written notice given to Lessor not less than THIRTY days prior to the expiration ofthe initial lease term. 2 18. Subordination. This lease is and shall be subordinated to all existing and future liens and encumbrances against the property. 19. Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties. Signed this ~ 7tJL day of ~ 2002. Countersigned: CITY OF CLEARWATER, FLORIDA ~~.JA.tfM, "It William B. Horne II, City Manager Approved as to form: Attest: ~a";;'d(!'~ ~..q~nth .' oUde. a. u ":'.< ' :.- . 'CIty Clerk " ",' . .. .. By: Robert Veurink, Secretary 3