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AMENDMENT TO LEASE AGREEMENT (2)AMENDMENT TO LEASE AGREEMENT THIS AMENDMENT TO LEASE AGREEMENT is made and entered into this l ' day of 2011, by and between the CITY OF CLEARWATER, FLORIDA, a municipal corporat on, hereinafter referred to as "Lessor" and CLEARWATER BEACH SEAFOOD, INC., a Florida Corporation, d/b/a Crabby Bill's Clearwater Beach Restaurant, hereinafter referred to as "Lessee" ("Amendment"). WHEREAS, Lessor leased the Premises for use as a full service restaurant with full liquor bar and liquor service to Lessee pursuant to the Lease Agreement executed by both parties on March 18th, 2009 ("Lease Agreement"); and WHEREAS, Lessee has represented that it will undertake a series of modifications, as further detailed herein, to the interior and exterior of the Premises; and WHEREAS, Lessor and Lessee agree that upon execution of this Amendment, the Lease Agreement shall terminate September 30, 2015 unless sooner terminated hereunder. NOW THEREFORE, it is mutually agreed as follows: Recitals. The recitals set forth above are true and correct and are incorporated herein by this reference. 2. Paragraph 1 of the Lease Agreement is hereby amended as follows: The term of this agreement begins on the date of execution and terminates September 30, 2015. The date of termination, however, is conditioned upon proper permitting and the Lessee's substantial completion of the modifications, as detailed herein, by August 1, 2011 and a certificate of occupancy issued or a final inspection conducted (whichever is applicable) no later than January , 2012. In the event Lessor does not timely complete modifications as defined herein, this Lease Agreement shall terminate on September 30, 2011. Except during the commencement term (date of execution to Sept. 30, 2009), as referred to throughout this agreement, an "agreement year" commences on the 1st day of October of each year and terminates on the 30th day of September of the following year. 3. Paragraph 5a of the Lease Agreement is hereby amended as follows: A guaranteed minimum rental in equal monthly payments, which will be due and payable on the first day of each month, an amount in accordance with the following schedule: Years of Lease Commencement - Sept. 30, 2009 Oct. 1, 2009 -Termination (Sept. 30, 2011 or 2015) Monthly payments $8,912.86 plus tax $8,912.86 plus tax & annual CPI-U increase The minimum rental shall increase on an annual basis beginning October 1, 2009, based on the Consumer Price Index for all Urban Consumers (CPI-U) South Urban area, for the twelve-month period ending September 30th. In no event will the minimum rental decrease from the most recent lease period. 4 Paragraph 15 of the Lease Agreement is hereby amended as follows: Lessee shall secure prior written approval from Lessor for modifications or remodeling of existing facilities or for the construction of any new facilities, and such approval shall not to be unreasonably withheld. The terms remodeling or modifications as used herein shall include only those events requiring the issuance of a building permit. a. City Council-approved proposed improvements (as approved on 8/5/2010): (1) The Lessee's proposed improvements/modifications/remodeling must be properly permitted and substantially completed by August 1, 2011 with a certificate of occupancy issued or final inspection (whichever is applicable) received no later than January 3, 2012 [one year from execution date]; otherwise, this Amendment is void. This Amendment is conditioned upon completion of the following proposed improvements/modifications to the Premises: A. Roof Reeair - including replacing existing roof surface; replacing bad wood as necessary; and resurfacing at a $30,000.00 estimated expense. B. ADA Improvement - including but not limited to repairing the elevator and enlarging the restroom facilities for greater access at $50,000.00 estimated expense C. Plumbing Upgrades - including the addition of a larger (grey water) grease interceptor at a $30,000.00 estimated expense. D. Electrical Upgrade - upgrading the out-dated electrical infrastructure of the Premises to obtain more efficient service at a $30,000.00 estimated expense. E. General Premises Upgrade - including the painting and updating of the fagade of the Premises at a $50,000.00 estimated expense. (2) The cost of modifications or remodeling is the responsibility of the Lessee. Lessor shall not reimburse Lessee for any costs incurred for having endeavored to modify or remodel the Premises under any circumstances. (3) The existing improvements, together with any improvements constructed by Lessee during the term of this agreement on the demised premises, shall become the property of the Lessor upon the y. expiration of termination of this agreement; provided, however, that said reference to improvements herein contemplates improvements to the real estate which become a part of the land as distinguished from personal property and trade fixtures utilized by the Lessee. (4) Lessor shall maintain the right to request an accounting, at any time, of the expenses incurred by Lessee in conducting the improvements/modifications; if the costs are materially less than those estimated to the City Council, then the Lessor reserves the right to terminate the Lease Agreement, 5. Except as modified hereby, all the terms and conditions of the Lease Agreement remain unchanged and are incorporated herein by reference and shall continue in full force and effect. IN WITNESS WHEREOF, this Amendment is executed as of the date first above written. PV WITNESSES: ?rgnature A rrmt Name Signatur Print Name CITY OF CLEARWATER, FLORIDA By: - :;k ?- A. -Z William Horne City Manager Attest: Rosemarie Call City Clerk CLEARWATER B OF ryE. rte.. act Matthew Loeser Sr., President , INC. Uammo Soto Assistant City Attorney