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1984-002ORDINANCE NO. 84 - 2 AN ORDINANCE ACCEPTING A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND EAT'S INCORPORATED, AN ILLINOIS CORPORATION BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, that: SECTION 1. The President and Clerk be and they are hereby authorized and directed to execute a lease for the operation of the restaurant and bar facilities in the Buffalo Grove Golf Course Club House dated January 9, 1984, between the Village of Buffalo Grove and Eat's Incorporated, an Illinois Corporation. SECTION 2. A copy of said executed lease is attached and made a part hereof. AYES: 5 - Marienthal, Stone, Hartstein, Glover, Reid NAYES: 1 - O'Reilly ABSENT: 0 - None PASSED: January 9 1984. APPROVED: January 9 1984. - -7 , re��, Village President ATTEST: Village Clerk e LEASE • This lease entered into this 9th day of January, 1984, by and between THE VILLAGE OF BUFFALO GROVE, a municipal corporation of Cook and Lake Counties, Illinois ( "Lessor "), and EATS, INCORPORATED, an Illinois corporation ( "Les- see"): Section A. Purpose Of Lease 1. Lease: Lessor hereby leases to Lessee the restaurant facilities located in the Buffalo Grove Golf Course Club House at 48 Raupp Boulevard, Buffalo Grove, Illinois, to be used and occupied by Lessee as a restaurant and lounge (sale of liquor included) for the term commencing January 1, 1984, and ending the 31st day of December, 1987, unless otherwise terminated as hereinafter set forth. It is hereby understood and agreed that the sole stockholder of EATS, INC. is Kerry Kuhn. Any transfer, assignment or sale of stock of said corporation shall immediately make this lease voidable at Lessor's option. Section B. Terms & Conditions 1. Operation: Lessee shall operate said facilities as a restaurant and lounge meeting the requirements of a Golf Course and Country Club Operation as reasonably determined by the Lessor. 2. Lawfulness: Lessee shall not conduct or permit any conduct on the demised premises which is contrary to the laws of any governmental authority. 3. Compliance: During the term of the Lease, Lessee shall comply with all Federal, State, County, and Village statutes and ordinances, including but not by way of limitation, State of Illinois and Village liquor licenses on municipally owned Golf Course. 4. Licenses: Lessee shall obtain a Village of Buffalo Grove business license, a Village of Buffalo Grove liquor license and a State of Illinois liquor license 1 0 F-1 L and any and all applicable Federal licenses prior to opening for sales to the public. In the event Lessee is unable to obtain or retain any such licenses,. then this lease shall be null and void. 5. Hours Of Operation: Notwithstanding the provisions of any statute or Village Ordinance, the hours of operation shall be approved in advance by Lessor's authorized agent, and such approval shall not be unreasonably withheld. The hours of operation shall be as follows: Monday.Through Saturday - 11:00 A.M. -1:00 A.M. Sunday - 11:00 A.M. -12:00 Midnight The hours of operation shall be posted prominently, both within and without the premises. Any changes shall be submitted by Lessee and will be amendments to this Lease if approved by Lessor which approval will not be unreasonably withheld. 6. Performance: The parties understand that Lessor has developed and maintained the property where the premises are situated as a place or location for a high quality and outstanding type of use as stated in Section B, paragraph 1 herein, and accordingly, Lessee, as a special inducement to Lessor to enter into this Lease, covenants, agrees and represents that the business the Lessee will conduct on the premises will be reputable in all respects, that Lessee will employ and operate the business in conformance with the standards followed by restaurants and lounges dealing in the same or similar operation. This would include amongst other things, a printed menu and advance notice to Lessor of price changes for food and beverages sold. 7. Access: Lessee shall allow Lessor free access to the demised premises for the purposes of examining same to ascertain that they are in good repair and in clean and sanitary condition. It is understood that the building is basically a Golf Course facility and that nothing herein contained shall interfere with the operation as such. 8. Remedies: The rights and remedies of the parties under this Lease are cumulative. The exercise or use of any one or more thereof shall not bar 2 0 • Lessor from exercise of use of any other right or remedy provided herein or otherwise provided by law, nor shall exercise nor use of any right or remedy by Lessor waive any other right or remedy. 9. Security Deposit: Upon the execution of this Lease, Lessee shall continue to maintain a deposit with Lessor of Two Thousand and no /100 Dollars ($2,004.00) as a security deposit to guarantee Lessee's faithful performance of this lease to and including, but not by way of limitation, payment of rent. Section C. Rent And Other Compensation 1.' Rent: Rent shall be due and payable on the first day of each month beginning January 1, 1984. Rent shall be paid as follows: (a) Lessee shall pay the sum of Six Hundred Sixteen Dollars and Twenty Cents ($616.20) per month rent for the months of April through September. (b) During the months of January through March, and October through December, the rent shall be zero. (c) The rent payable and due in subsections (a) and (b) above shall apply to calendar year 1984 only. Lessor reserves the right to review the monthly rent in December of each year and reserves the right to adjust the rent upon notice to Lessee. Lessor and Lessee shall work together to determine fair and adequate rent return based on performance review. Rent adjustments will be amendments to this lease. In no case will the annual adjustment in rental compensation due the Lessor be less than the annual change in the Chicago Area Consumer Price Index for the annual period ending December 31 of 1984, 1985, and 1986 to be effective with the succeeding calendar year. In addition, the maximum amount of such annual adjustment in rental compensation due the Lessor will not exceed the annual percentage change in the total gross retail sales of the Lessee as reported to the State of Illinois Department of Revenue monthly with Lessee's sales tax returns. The percentage change will be determined annually as of December 31 of 1984, 1985, and 1986 to be effective with the succeeding calendar year, if such percentage change is applicable. Should gross reported sales be less than the change 3 • • in the Chicage Area Consumer Price Index for the review period under consideration, the minimum rental compensation adjustment will in that case equal the percentage change in the Consumer Price Index. 2. Examination Of Records: A verified copy of the Lessee's monthly sales tax returns for each month of operation will be given to the Lessor's authorized agent only no later than fifteen (15) days after the end of each lease month. Lessor will pledge to keep such returns confidential and not open to any public inspection, if not in violation or contrary to any laws. Annually, the Lessor reserves the right to review the records of the Lessee in order to determine what should be a fair and equitable monthly rent in any subsequent year of this lease. The records may be reviewed by the Lessor's authorized agent or his representative or representatives. Lessor will pledge to keep such returns confidential and not open to any public inspection if not in violation or contrary to any laws. 3. Utilities: Lessor and Lessee shall share on a square footage determination the cost of all utilities including electricity, gas, water, hearing and air conditioning. All bills for same shall be in Lessor's name and Lessor shall pay same. Lessor shall subsequently bill out to Lessee the pro -rated charge to be determined as per Exhibit "A" to this document. Lessee shall pay Lessor within fifteen (15) days after receipt of notice of his pro -rated share. Lessor shall work with Lessee to enhance physical facility to attempt all possible energy conservation measures. Section D. Cleaning, Maintenance & Improvements 1. Cleaning: Lessee shall maintain, clean and keep in good repair all appropriate areas within the Club House including the washrooms. Lessee shall maintain, clean and keep in good repair the walk -in cooler and the outside garbage /refuse and storage area. Maintenance will be concluded by 5:00 A.M. daily. Lessor shall maintain and clean all other outside areas (including parking lot) of the demised premises. Lessee's area shall be maintained in a condition acceptable to Lessor's Village Health Officer. If Lessee received violations from the Health Officer and does not correct same within two (2) days, then Lessor will correct same and bill Lessee at the rate of $15.00 per 4 e • hour. It is expressly understood by the parties hereto that notwithstanding anything to the contrary, the Lessee shall not be responsible for making any repairs to the parking lot. 2. Maintenance: Lessee shall notify Lessor of any equipment (other than equipment Lessee installs or owns on the premises) that is in need of repair. All equipment installed by Lessee shall be maintained and repaired by Lessee. 3. Equipment: (a) It is Lessor's intent to dispose of certain equipment as listed on Exhibit "B" hereto which is currently located on the premises. Lessee shall have the right to bid on said equipment. (b) Lessor does not intend to dispose of that equipment as listed on Exhibit "C" hereto. Within seven (7) days of occupancy and for renewal of this lease, Lessee shall acknowledge in writing that he has inspected all equipment set forth in Exhibit "C" herein and that all such equipment is in good operating condition. Lessee shall have the right to substitute equipment for that in Exhibit "C ". All expense of connection and installation shall be borne by Lessee. All removed equipment shall be stored by the Lessor. Upon termination of Lease for any cause, the Lessee shall reinstall old equipment without cost to Lessor, provided that the premises shall be in the same condition as prior to removal. If structural changes are necessary to install the new equipment, said equipment shall remain and shall be the sole property of the Lessor. (c) If Lessee is the successful bidder of the equipment in Exhibit "Be': 1. Then upon termination (other than an assignment that the Village has approved) of this Lease for whatever reason, Lessor shall have the first right of refusal to purchase said equipment at its fair market value. Such fair market value shall be determined through a fair appraisal of such equipment to be conducted by an appraiser to be retained by Lessor who shall conduct such appraisal and shall be paid by Lessor. Appraiser shall not be denied access to review any and all equipment on the premises for the purpose of 5 e • determining the fair market value of such equipment. 2. If Lessee purchases substituted equipment for that equipment listed on Exhibit "B ", or purchases new equipment, then upon termination of this Lease for whatever reason (other than an assignment that the Village has approved) Lessor shall have the first right of refusal to purchase said substitute or new equipment, or any part or item thereof at its fair market value. 3. A copy of paid invoices for any equipment so purchased by Lessee under this sub - paragraph (c) shall be forwarded to Lessor within thirty (30) days of purchase. (d) Lessor's first right of refusal as set forth in sub- paragraph (c) above shall be exercised within thirty (30) days of termination of this Lease. To guarantee said right of first refusal, Lessee shall execute a UCC Financing Statement. 4. Decorating & Capital Improvements: Decorating or new capital improvements shall be done at Lessee's expense unless waived upon written approval of the Lessor with the exception of those improvements set forth in Section D. paragraph 5. Also, Lessee shall submit a capital improvement schedule for those improvements anticipated to take place during the term of this lease within 60 days from the commencement of this lease, that is satisfactory to the Lessor. 5. Outside Lighting: Any outside lighting of the premises shall be done in Lessor's sole discretion and at Lessor's cost. Any outside lighting of an exterior sign shall be done at Lessor's cost. 6. Signs: Lessee may be permitted to display such exterior signs as permitted by Village Ordinances. Lessee shall pay for the construction of any such signs. At the termination of this Lease any such signs shall become Lessee's property. 7. Alterations: Lessee shall make no material changes, alterations or additions in, on, or to the demised premises without the prior written consent of the Lessor. C 8. Coin Operated Machines & Tobacco Sales: Lessor may maintain on the premises and have the proceeds of one candy machine. No other coin operated machines shall be allowed on the demised premises without the written consent of the Lessor. Lessor shall obtain licenses on its machine as per Village Ordinances. Lessee shall have the right to sell cigarettes through a vending machine maintained by the Lessee. Lessee shall obtain the required license and shall conform to the applicable Village Ordinances regarding tobacco dealers. Section E. Assignment Of Lease: 1. Assignment The Lessee shall not assign this lease without the Lessor's prior written consent. Lessor's consent will be determined based on assurances that the proposed assignee is financially sound, knowledgeable in the business of operating food and bar facilities, and can maintain service levels required by the Lessor that are in conformance with the terms and conditions of this Lease. In the event of any such assignment of this Lease, the Lessee shall be released from any and all liability arising or accruing under this Lease after the date of such assignment, provided that the assignee executes, acknowledges, and delivers a valid, binding, and sufficient instrument in writing, directly enforceable by the Lessor, containing the assignee's assumption and agreement to pay all rent and other amounts reserved in this Lease and to perform all of the covenants, provisions, and conditions thereof, and that an original of such assumption and agreement be delivered to the Lessor. In no other circumstances shall the Lessee be so released, nor shall the acceptance of rent by the Lessor from any such assignee, in any case, operate or be taken to work or effect such release. Section F. Termination 1. Termination: In the event of any default in the terms hereof and if the same are not corrected within thirty (30) days from written notice of same, the Lessor may terminate the Lease and take possession of the premises and equipment without the necessity of institution of eviction proceedings. Each of the parties hereto shall have recourse to any Court of Law or equity to enforce the provisions of this Lease as set forth herein. 7 0 0 Upon termination for whatever reason, the Lessee shall deliver up the premises and the equipment listed in the attached Exhibit "C" (along with any replaced equipment that cannot be removed) and that equipment listed in Section D, Paragraph 3 -(c) that Lessor has exercised its right of first refusal on in a clean operating and sanitary condition, except for ordinary wear and tear. 2. Bankruptcy: In the event that Lessee shall become bankrupt or shall make a voluntary assignment for benefit of creditors, or in the event that a receiver is appointed, then, at the option of the Lessor on twenty (20) days written notice, this lease may be terminated. 3. Casualty: In case the premises shall be rendered untenantable during the term of this Lease by fire or other casualty, Lessor at its option may terminate the Lease or repair the premises within ninety (90) days thereafter. No rent or utilities shall be due and owing from date of casualty until date premises is rendered tenantable. If Lessor elects to repair, this Lease shall remain in effect provided such repairs are completed within said time. If Lessor shall not have repaired the premises within said time, then the term hereby created shall terminate. If this Lease is terminated by reason of fire or casualty as herein specified, rent shall be apportioned and paid to the day of such fire or other casualty. Section G. General Conditions 1. Insurance: Lessee shall (during the term and any extension hereof) maintain the following insurance in companies acceptable to the Lessor: (a) Workmen's Compensation (Lessee will furnish Certificate of Insurance thereof). (b) Dram Shop ($500,000.00) (Lessor shall be named as an additional insured thereon). (c) General Liability ($500,000.00 /$1,000,000.00 bodily injury; and $50,000.00/$500,000.00 property damage) (Lessor shall be named an additional insured as their interest appears. This will not require Lessee to provide said insurance to cover parking lot.) (d) Lessor shall provide fire and extended coverage on the building and its contents which insurance policy shall contain a "Waiver 9 o • of Subrogation" against Lessee. Lessee shall pay Lessor for the cost of said "Waiver of Subrogation" endorsement on a pro -rated basis. Said cost is estimated at $100 per policy year. Lessee will be responsible for providing its own insurance covering its equipment and inventory. Evidence of such insurance shall be furnished Lessor prior to taking possession of the premises. In the event the Lessee does anything on the demised premises which raises existing insurance rates on the building, the Lessor shall notify the Lessee and unless the same is corrected within two (2) days after notification, Lessor shall require Lessee to pay the excess. 2. Sales On Golf Course Property: (a) At the request of the Lessor through its authorized agent, Lessee shall have non - exclusive right to bid to provide food, beer, and soft drinks for the annual Buffalo Grove Days festivities, July 4th fireworks show sponsored by the Village of Buffalo Grove or a non - profit organization recognized by the Village of Buffalo Grove, and any and all Village activities as recognized by the Lessor's authorized agent. (b) Lessor shall, upon seven (7) days written notice to Lessee, be entitled to limited possession of the leased premises to the exclusion of Lessee for the purpose of holding Village of Buffalo Grove related activities not to exceed five (5) times per year. If, however, the use of the kitchen and bar will be required, written approval of the Lessee will be necessary. (c) For the annual Buffalo Grove Days festivities and July 4th fireworks show, Lessee shall permit the sale of food, beer, and soft drinks on the Golf Course property, but outside the club house building. 3. Card Playing, Gambling, and Quasi - Gambling Activities: All forms of gambling are prohibited. This includes all organized card playing, betting and other wagering activities which are deemed by the Lessor to be not of suitable character and are prohibited from taking place within the Buffalo Grove Golf Course Club House. 4. New And /Or Additional Facilities: In the event Lessor constructs a new restaurant and /or lounge facility on or adjacent to the Buffalo Grove Golf Course, either as part of a club house or as a separate facility, in addition to or as replacement for the demised premises, or constructs an addition to the present facility, during E e the term of this lease, or any renewal, extension or modification thereof, Lessee shall be offered the right to operate said new and /or additional facility upon terms and conditions specified by the Lessor that are mutually agreeable to both parties to this Lease. 5. Authorized Representatives: The only authorized agent of the Lessor shall be the Lessor's Chief Administrative Officer. The authorized agent of the Lessee shall be Gerald Shapiro, Attorney -at -Law, 1535 Lake Cook Road, Northbrook, Ill. 60062. 6. Notices: All notices provided herein shall be served personally or made by certified mail, return receipt to the parties hereto as follows: LESSOR: Village of Buffalo Grove 50 Raupp Boulevard Buffalo Grove, Illinois 60090 LESSEE: Eat's Incorporated c/o Buffalo Grove Golf Club 48 Raupp Boulevard Buffalo Grove, Illinois 60090 7. Liability: No personal liability shall attach to any person executing this Lease. Section H. Option To Renew 1. Option To Renew: The Lessee shall have the option and right of first refusal to renew this lease for additional four (4) year terms beginning January 1, 1988, and every four years thereafter upon such terms and conditions as are mutually agreed upon . The right to renew such lease may be extended provided that the Lessee is not presently in default under any of its terms, conditions, or obligations under the Lease. Lessee must give written notice of such election to exercise such renewal option to lessor at least one hundred twenty (120) days prior to the expiration of the term herein provided. 10 0 • IN WITNESS WHEREOF the parties hereto have caused this Lease to be executed the day and year first above written. LESSOR: LESSEE: VILLAGE OF BUFFALO GROVE EAT'S INCORPORATED, an Illinois Corp. By By Village President P e de t ATTEST: ATTEST: Village Clerk S retary 11 1 FXHIRIT 'All Section C, Paragraph 3, Utilities requires the lessee and lessor to share on a square footage basis the cost of all utilities. The pro -rata charge shall be billed on a percentage of restaurant, bar, kitchen, and storage square footage to the total sware footage of the club- house, Attached are three documents. An explanation of each is appropriate. 1) This document accumulates the square footage calculations for all component areas of the club house. The final percentage basis for utility charge -back are calculated. The lessee shall pay 46.06% of all utility invoices submitted by the Village (lessor) under the terms of Section C, Paragraph 3. 2) This graph represents the actual floor dimensions of the club- house. This survey was conducted by the Director of Finance and General Services on May 5, 1980. Dimensions are accurate although the actual diagram is not drawn totally to scale. 3) This graph is a photocopy of #2 above and was utilized to block out the room area for the bases of calculating the final square footage. iIliam H, Brimm Finance Director This exhibit is accepted under the terms of Section C, Paragraph 3 in lease dated Uanualryr9y`s 19$4 between the Village of Buffalo Grove (Lessor) and EATS, INCORPORATED, an Illinois Corporation (Lessee) W711iam R. Balling ' Authorized Agent- Lessor --:e' K Kuhn Eats, Inc rporated (Lessee) ir 0 1 Z D i 0 u 1 2 3 4 5 6 0 7 8 9 10 12 13 14 15 16 0 18 19 20 21 22 23 24 25 26 C 27 28 29 30 31 32 33 34 35 36 37 38 39 40 CAI 07 1, 1 14, >j6 I -'� Fi 0-- Aq W- vo ft- a V-0 o H ------- eo 1 I�� oso >% ! �t - AG T 00 _ _ _1 ut .23 0 to 1:0 0 04 t ce O Z 70 3 sm /3.0' S ;n 0 c z EXHIRIT "R" Personal Property on Premises - Subject to Disposal Through Bid 1 Oven (South Bend) 1 Fryer (Anetts) 1 Microwave (Admiral) 1 Reach -In Cooler & Shelf 1 Ice Cream Freezer 1 Dishwasher (Blakesley) 3 Storage Racks 1 3 Bay Sink I Hand Sink 1 Work Table 1 2 Burner Stove 1 Coffee Pot & Stand 14 Square Tables 2 Round Tables 67 Chairs 1 Hood & Safety Fi rst 1 Reach -in Beer Cooler S.S. Sinks & tce Bins Behind Bar 1 Bar 1 Waitress Stand 1 Flat Grill 1 Table Top Fryer 1 12' Counter 1 Reach -In Cooler - Freezer 1 Walk -tn Cooler 35 Square Large Salt & Pepper Shakers 35 Octagon Salt & Pepper Shakers 6 Sugar Pours 4 Creamers 4 Bus Boy Tubs 4 Utensil Tubs 4 Wash Racks 8 Misc. Stainless Steel Containers 2 Round Serving Containers (stainless steel) 1 Swede Cash Register 5 Bar Trays Misc. 1 Scovill Hamilton 3 Place Mixer (2 shakers) 1 Five Server Bar Fruit Server 10 Bar Stools 3 Cocktail Tables 2 French Fry Baskets 1 French Fry Warmer 1 Meat Slicer EXHIBIT "B" CONTINUED 1 Colander Strainer 11 Baking Trays Misc. Christmas Decorations 3 Fruit Bowls 13 Small 5" Plates 30 Soup Cups 2 Large Salad Mixing Bow -ls 2 Large 12 Qt. Cookers 20 Soup Spoons 42 Teaspoons (Misc.) 45 Knives (Misc.) 48 Forks (Misc.) 35 Red Sandwich Baskets 33 Yellow Sandwich Baskets 15 Glass Bud Vases 15 Milkglass Type Bud Vases 39 Dinner Platters 27 Coffee Cups 40 Salad Bowls 49 Dinner Plates 69 Saucers 18 Bread Plates 43 Soup Bowls 16 Cereal Bowls 78 5 Oz. Juice Glasses 15 Mugs 9 1 Dz Pitchers 9 Footed Cocktail Glasses • EXHIBIT "C" Personal Property on Premises - To Be Retained by Lessor 1 Bogen RM -350 AM /FM Stereo Receiver 1 Olson RA -261 AM /FM Stereo Receiver 1 General Electric 25" Color w /Remote 1 RCA Colortone 25" w /Remote 1__ Ice Machine 5 Serving Trays 6 Stack Chairs 1 4 Piece Toaster 1 Pizza Oven 14 Large Stainless Steel Serving Pans K VILLAGE OF BUFFALO GROVE ORDINANCE NO. oZ/ ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF UFFALO G OVE THIS DAY OF l 9 ,E%S/. Published in pamphlet form by authority of the President and Board of Trustees of the Village of Buffalo Grove, Coo and Lake Counties, Illinois, th i s /D c, day of 19. Village Cler—k- i ORDINANCE NO. 84 - 2 AN ORDINANCE ACCEPTING A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND EAT'S INCORPORATED, AN ILLINOIS CORPORATION BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, that: SECTION 1. The President and Clerk be and they are hereby authorized and directed to execute a lease for the operation of.the restaurant and bar facilities in the Buffalo Grove Golf Course Club House dated January 9, 1984, between the Village of Buffalo Grove and Eat's Incorporated, an Illinois Corporation. SECTION 2. A copy of said executed lease is attached and made a part hereof. AYES. 5 - Marienthal, Stone, Hartstein, Glover, Reid NAPES: 1 - O'Reilly ABSENT: 0 - None PASSED: January 9 1984. APPROVED: January 9 1984. Village President ATTEST:;, Village Clerk f LEASE This lease entered into this 9th day of January, 1984, by and between THE VILLAGE OF BUFFALO GROVE, a municipal corporation of Cook and Lake Counties, Illinois ( "Lessor "), and EATS, INCORPORATED, an Illinois corporation ( "Les- see"): Section A. Purpose Of Lease 1. Lease: Lessor hereby leases to Lessee the restaurant facilities located in the Buffalo Grove Golf Course Club House at 48 Raupp Boulevard, Buffalo Grove, Illinois, to be used and occupied by Lessee as a restaurant and lounge (sale of liquor included) for the term commencing January 1, 1984, and ending the 31st day of December, 1987, unless otherwise terminated as hereinafter set forth. It is hereby understood and agreed that the sole stockholder of EATS, INC. is Kerry Kuhn. Any transfer, assignment or sale of stock of said corporation shall immediately make this lease voidable at Lessor's option. Section B. Terms & Conditions 1. Operation: Lessee shall operate said facilities as a restaurant and lounge meeting the requirements of a Golf Course and Country Club Operation as reasonably determined by the Lessor. 2. Lawfulness: Lessee shall not conduct or permit any conduct on the demised premises which is contrary to the laws of any governmental authority. 3. Compliance: During the term of the Lease, Lessee shall comply with all Federal, State, County, and Village statutes and ordinances, including but not by way of limitation, State of Illinois and Village liquor licenses on municipally owned Golf Course. 4. Licenses: Lessee shall obtain a Village of Buffalo Grove business license, a Village of Buffalo Grove liquor license and a State of Illinois liquor license 1 and any and all applicable Federal licenses prior to opening for sales to the public. In the event Lessee is unable to obtain or retain any such licenses, then this lease shall be null and void. 5. Hours Of Operation: Notwithstanding the provisions of any statute or Village Ordinance, the hours of operation shall be approved in advance by Lessor's authorized agent, and such approval shall not be unreasonably withheld. The hours of operation shall be as follows: Monday Through Saturday - 11:00 A.M. -1:00 A.M. Sunday - 11:00 A.M. -12:00 Midnight The hours of operation shall be posted prominently, both within and without the premises. Any changes shall be submitted by Lessee and will be amendments to this Lease if approved by Lessor which approval will not be unreasonably withheld. 6. Performance: The parties understand that Lessor has developed and maintained the property where the premises are situated as a place or location for a high quality and outstanding type of use as stated in Section B, paragraph 1 herein, and accordingly, Lessee, as a special inducement to Lessor to enter into this Lease, covenants, agrees and represents that the business the Lessee will conduct on the premises will be reputable in all respects, that Lessee will employ and operate the business in conformance with the standards followed by restaurants and lounges dealing in the same or similar operation. This would include amongst other things, a printed menu and advance notice to Lessor of price changes for food and beverages sold. 7. Access: Lessee shall allow Lessor free access to the demised premises for the purposes of examining same to ascertain that they are in good repair and in clean and sanitary condition. It is understood that the building is basically a Golf Course facility and that nothing herein contained shall interfere with the operation as such. 8. Remedies: The rights and remedies of the parties under this Lease are cumulative. The exercise or use of any one or more thereof shall not bar 2 Lessor from exercise of use of any other right or remedy provided herein or otherwise provided by law, nor shall exercise nor use of any right or remedy by Lessor waive any other right or remedy. 9. Security Deposit: Upon the execution of this Lease, Lessee shall continue to maintain a deposit with Lessor of Two Thousand and no /100 Dollars ($2,000.00) as a security deposit to guarantee Lessee's faithful performance of this lease to and including, but not by way of limitation, payment of rent. Section C. Rent And Other Compensation 1. Rent: Rent shall be due and payable on the first day of each month beginning January 1, 1984. Rent shall be paid as follows: (a) Lessee shall pay the sum of Six Hundred Sixteen Dollars and Twenty Cents ($616.20) per month rent for the months of April through September. (b) During the months of January through March, and October through December, the rent shall be zero. (c) The rent payable and due in subsections (a) and (b) above shall apply to calendar year 1984 only. Lessor reserves the right to review the monthly rent in December of each year and reserves the right to adjust the rent upon notice to Lessee. Lessor and Lessee shall work together to determine fair and adequate rent return based on performance review. Rent adjustments will be amendments to this lease. In no case will the annual adjustment in rental compensation due the Lessor be less than the annual change in the Chicago Area Consumer Price Index for the annual period ending December 31 of 1984, 1985, and 1986 to be effective with the succeeding calendar year. In addition, the maximum amount of such annual adjustment in rental compensation due the Lessor will not exceed the annual percentage change in the total gross retail sales of the Lessee as reported to the State of Illinois Department of Revenue monthly with Lessee's sales tax returns. The percentage change will be determined annually as of December 31 of 1984, 1985, and 1986 to be effective with the succeeding calendar year, if such percentage change is applicable. Should gross reported sales be less than the change 3 in the Chicage Area Consumer Price Index for the review period under consideration, the minimum rental compensation adjustment will in that case equal the percentage change in the Consumer Price Index. 2. Examination Of Records: A verified copy of the Lessee's monthly sales tax returns for each month of operation will be given to the Lessor's authorized agent only no later than fifteen (15) days after the end of each lease month. Lessor will pledge to keep such returns confidential and not open to any public inspection, if not in violation or contrary to any laws. Annually, the Lessor reserves the right to review the records of the Lessee in order to determine what should be a fair and equitable monthly rent in any subsequent year of this lease. The records may be reviewed by the Lessor's authorized agent or his representative or representatives. Lessor will pledge to keep such returns confidential and not open to any public inspection if not in violation or contrary to any laws. 3. Utilities: Lessor and Lessee shall share on a square footage determination the cost of all utilities including electricity, gas, water, hearing and air conditioning. All bills for same shall be in Lessor's name and Lessor shall pay same. Lessor shall subsequently bill out to Lessee the pro -rated charge to be determined as per Exhibit "A" to this document. Lessee shall pay Lessor within fifteen (15) days after receipt of notice of his pro -rated share. Lessor shall work with Lessee to enhance physical facility to attempt all possible energy conservation measures. Section D. Cleaning, Maintenance & Improvements 1. Cleaning: Lessee shall maintain, clean and keep in good repair all appropriate areas within the Club House including the washrooms. Lessee shall maintain, clean and keep in good repair the walk -in cooler and the outside garbage /refuse and storage area. Maintenance will be concluded by 5:00 A.M. daily. Lessor shall maintain and clean all other outside areas (including parking lot) of the demised premises. Lessee's area shall be maintained in a condition acceptable to Lessor's Village Health Officer. If Lessee received violations from the Health Officer and does not correct same within two (2) days, then Lessor will correct same and bill Lessee at the rate of $15.00 per 4 �_r hour. It is expressly understood by the parties hereto that notwithstanding anything to the contrary, the Lessee shall not be responsible for making any repairs to the parking lot. 2. Maintenance: Lessee shall notify Lessor of any equipment (other than equipment Lessee installs or owns on the premises) that is in need of repair. All equipment installed by Lessee shall be maintained and repaired by Lessee. 3. Equipment: (a) It is Lessor's intent to dispose of certain equipment as listed on Exhibit "B" hereto which is currently located on the premises. Lessee shall have the right to bid on said equipment. (b) Lessor does not intend to dispose of that equipment as listed on Exhibit "C" hereto. Within seven (7) days of occupancy and for renewal of this lease, Lessee shall acknowledge in writing that he has inspected all equipment set forth in Exhibit "C" herein and that all such equipment is in good operating condition. Lessee shall have the right to substitute equipment for that in Exhibit "C ". All expense of connection and installation shall be borne by Lessee. All removed equipment shall be stored by the -- Lessor. Upon termination of Lease for any cause, the Lessee shall reinstall old equipment without cost to Lessor, provided that the premises shall be in the same condition as prior to removal. If structural changes are necessary to install the new equipment, said equipment shall remain and shall be the sole property of the Lessor. (c) If Lessee is the successful bidder of the equipment in Exhibit nBn 1. Then upon termination (other than an assignment that the Village has approved) of this Lease for whatever reason, Lessor shall have the first right of refusal to purchase said equipment at its fair market value. Such fair market value shall be determined through a fair appraisal of such equipment to be conducted by an appraiser to be retained by Lessor who shall conduct such appraisal and shall be paid by Lessor. Appraiser shall not be denied access to review any and all equipment on the premises for the purpose of 5 I_ determining the fair market value of such equipment. 2. If Lessee purchases substituted equipment for that equipment listed on Exhibit "B ", or purchases new equipment, then upon termination of this Lease for whatever reason (other than an assignment that the Village has approved) Lessor shall have the first right of refusal to purchase said substitute or new equipment, or any part or item thereof at its fair market value. 3. A copy of paid invoices for any equipment so purchased by Lessee under this sub - paragraph (c) shall be forwarded to Lessor within thirty (30) days of purchase. (d) Lessor's first right of refusal as set forth in sub - paragraph (c) above shall be exercised within thirty (30) days of termination of this Lease. To guarantee said right of first refusal, Lessee shall execute a UCC Financing Statement. 4. Decorating & Capital Improvements: Decorating or new capital improvements shall be done at Lessee's expense unless waived upon written approval of the Lessor with the exception of those improvements set forth in Section D. paragraph 5. Also, Lessee shall submit a capital improvement schedule for those improvements anticipated to take place during the term of this lease within 60 days from the commencement of this lease, that is satisfactory to the Lessor. 5. Outside Lighting: Any outside lighting of the premises shall be done in Lessor's sole discretion and at Lessor's cost. Any outside lighting of an exterior sign shall be done at Lessor's cost. 6. Signs: Lessee may be permitted to display such exterior signs as permitted by Village Ordinances. Lessee shall pay for the construction of any such signs. At the termination of this Lease any such signs shall become Lessee's property. 7. Alterations: Lessee shall make no material changes, alterations or additions in, on, or to the demised premises without the prior written consent of the Lessor. 6 T 8. Coin Operated Machines & Tobacco Sales: Lessor may maintain on the premises and have the proceeds of one candy machine. No other coin operated machines shall be allowed on the demised premises without the written consent of the Lessor. Lessor shall obtain licenses on its machine as per Village Ordinances. Lessee shall have the right to sell cigarettes through a vending machine maintained by the Lessee. Lessee shall obtain the required license and shall conform to the applicable Village Ordinances regarding tobacco dealers. Section E. Assignment Of Lease: 1. Assignment The Lessee shall not assign this lease without the Lessor's prior written consent. Lessor's consent will be determined based on assurances that the proposed assignee is financially sound, knowledgeable in the business of operating food and bar facilities, and can maintain service levels required by the Lessor that are in conformance with the terms and conditions of this Lease. In the event of any such assignment of this Lease, the Lessee shall be released from any and all liability arising or accruing under this Lease after the date of such assignment, provided that the assignee executes, acknowledges, and delivers a valid, binding, and sufficient instrument in writing, directly enforceable by the Lessor, containing the assignee's assumption and agreement to pay all rent and other amounts reserved in this Lease and to perform all of the covenants, provisions, and conditions thereof, and that an original of such assumption and agreement be delivered to the Lessor. In no other circumstances shall the Lessee be so released, nor shall the acceptance of rent by the Lessor from any such assignee, in any case, operate or be taken to work or effect such release. Section F. Termination 1. Termination: In the event of any default in the terms hereof and if the same are not corrected within thirty (30) days from written notice of same, the Lessor may terminate the Lease and take possession of the premises and equipment without the necessity of institution of eviction proceedings. Each of the parties hereto shall have recourse to any Court of Law or equity to enforce the provisions of this Lease as set forth herein. 7 Upon termination for whatever reason, the Lessee shall deliver up the premises and the equipment listed in the attached Exhibit "C" (along with any replaced equipment that cannot be removed) and that equipment listed in Section D, Paragraph 3 -(c) that Lessor has exercised its right of first refusal on in a clean operating and sanitary condition, except for ordinary wear and tear. 2. Bankruptcy: In the event that Lessee shall become bankrupt or shall make a voluntary assignment for benefit of creditors, or in the event that a receiver is appointed, then, at the option of the Lessor on twenty (20) days written notice, this lease may be terminated. 3. Casualty: In case-the premises shall be rendered untenantable during the term of this Lease by fire or other casualty, Lessor at its option may terminate the Lease or repair the premises within ninety (90) days thereafter. No rent or utilities shall be due and owing from date of casualty until date premises is rendered tenantable. If Lessor elects to repair, this Lease shall remain in effect provided such repairs are completed within said time. If Lessor shall not have repaired the premises within said time, then the term hereby created shall terminate. If this Lease is terminated by reason of fire or casualty as herein specified, rent shall be apportioned and paid to the day of such fire or other casualty. Section G. General Conditions 1. Insurance: Lessee shall (during the term and any extension hereof) maintain the following insurance in companies acceptable to the Lessor: (a) Workmen's Compensation (Lessee will furnish Certificate of Insurance thereof). (b) Dram Shop ($500,000.00) (Lessor shall be named as an additional insured thereon). (c) General Liability ($500,000.00/$1,000,000.00 bodily injury; and $50,000.00/$500,000.00 property damage) (Lessor shall be named an additional insured as their interest appears. This will not require Lessee to provide said insurance to cover parking lot.) (d) Lessor shall provide fire and extended coverage on the building and its contents which insurance policy shall contain a "Waiver 8 of Subrogation" against Lessee. Lessee shall pay Lessor for the cost of said "Waiver of Subrogation" endorsement on a pro -rated basis. Said cost is estimated at $100 per policy year. Lessee will be responsible for providing its own insurance covering its equipment and inventory. Evidence of such insurance shall be furnished Lessor prior to taking possession of the premises. In the event the Lessee does anything on the demised premises which raises existing insurance rates on the building, the Lessor shall notify the Lessee and unless the same is corrected within two (2) days after notification, Lessor shall require Lessee to pay the excess. 2. Sales On Golf Course Property: (a) At the request of the Lessor through its authorized agent, Lessee shall have non - exclusive right to bid to provide food, beer, and soft drinks for the annual Buffalo Grove Days festivities, July 4th fireworks show sponsored by the Village of Buffalo Grove or a non - profit organization recognized by the Village of Buffalo Grove, and any and all Village activities as recognized by the Lessor's authorized agent. (b) Lessor shall, upon seven (7) days written notice to Lessee, be entitled to limited possession of the leased premises to the exclusion of Lessee for the purpose of holding Village of Buffalo Grove related activities not to exceed five (5) times per year. If, however, the use of the kitchen and bar will be required, written approval of the Lessee will be necessary. (c) For the annual Buffalo Grove Days festivities and July 4th fireworks show, Lessee shall permit the sale of food, beer, and soft drinks on the Golf Course property, but outside the club house building. 3. Card Playing, Gambling, and Quasi - Gambling Activities: All forms of gambling are prohibited. This includes all organized card playing, betting and other wagering activities which are deemed by the Lessor to be not of suitable character and are prohibited from taking place within the Buffalo Grove Golf Course Club House. 4. New And /Or Additional Facilities: In the event Lessor constructs a new restaurant and /or lounge facility on or adjacent to the Buffalo Grove Golf Course, either as part of a club house or as a separate facility, in addition to or as replacement for the demised premises, or constructs an addition to the present facility, during 9 the term of this lease, or any renewal, extension or modification thereof, Lessee shall be offered the right to operate said new and /or additional facility upon terms and conditions specified by the Lessor that are mutually agreeable to both parties to this Lease. 5. Authorized Representatives: The only authorized agent of the Lessor shall be the Lessor's Chief Administrative Officer. The authorized agent of the Lessee shall be Gerald Shapiro, Attorney -at -Law, 1535 Lake Cook Road, Northbrook, Ill. 60062. 6. Notices: All notices provided herein shall be served personally or made by certified mail, return receipt to the parties hereto as follows: LESSOR: Village of Buffalo Grove 50 Raupp Boulevard Buffalo Grove, Illinois 60090 LESSEE: Eat's Incorporated c/o Buffalo Grove Golf Club 48 Raupp Boulevard Buffalo Grove, Illinois 60090 7. Liability: No personal liability shall attach to any person executing this Lease. Section H. Option To Renew 1. Option To Renew: The Lessee shall have the option and right of first refusal to renew this lease for additional four (4) year terms beginning January 1, 1988, and every four years thereafter upon such terms and conditions as are mutually agreed upon . The right to renew such lease may be extended provided that the Lessee is not presently in default under any of its terms, conditions, or obligations under the Lease. Lessee must give written notice of such election to exercise such renewal option to lessor at least one hundred twenty (120) days prior to the expiration of the term herein provided. 10 IN WITNESS WHEREOF the parties hereto have caused this Lease to be executed the day and year first above written. LESSOR: LESSEE: VILLAGE OF BUFFALO GROVE EAT'S INCORPORATED, an Illinois Corp. By i�. �� By Village President P &es4de t ATTEST: ATTEST: 1, Village Clerk S retary 1 11