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2001-23RESOLUTION 2001- 23 A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND PROGRESSIVE MANAGEMENT SERVICES, LLC WHEREAS, the Village of Buffalo Grove is a Home Rule Unit pursuant to the Illinois State Constitution of 1970; and WHEREAS, it has determined that it is in the best interest of the Village to lease the restaurant and beverage services at the Arboretum Golf Course; and WHEREAS, the Village of Buffalo Grove approved a Term Sheet on Monday, February 13, 2001 proposing to lease to Progressive Management Services, LLC to provide food and beverage services at the Arboretum Golf Course beginning as of January 1, 2003 although occupancy could occur at an earlier as contemplated under the terms of the proposed Lease. NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS that: Section 1. The Village President and Clerk are hereby authorized to execute the attached lease entitled "Operating Lease Between the Village of Buffalo Grove and Progressive Management Services, LLC" dated as of the 21st day of May, 2001. Section 2. Village staff is hereby directed to insure that this lease is implemented in order for full service to commence at the Arboretum Golf Course approximately January 1, 2003. AYES: 6 - Marienthal Braiman Glover Berman Johnson Kahn NAYES: 0 - None ABSENT:— 0 —None PASSED: May 21 ,2001. APPROVED: May 21 ,2001. Village President Vil ge Clerks r OPERATING LEASE Between THE VILLAGE OF BUFFALO GROVE and PROGRESSIVE MANAGEMENT SERVICES, LLC Dated: May 21, 2001 May 24, 2001 Operating Lease Between The Village of Buffalo Grove and Progressive Management Services, LLC THIS OPERATING LEASE (the "Lease ") is made and entered into as of the day of May, 2001, by and between the Village of Buffalo Grove, an Illinois ome Rule Municipality (the "Landlord "), and Progressive Management Services, LLC, an Illinois limited liability corporation (the "Tenant "). ARTICLE 1 PURPOSE OF LEASE 1.1 The Landlord is the current legal title owner of record of the real estate commonly known as the Village of Buffalo Grove Arboretum Golf Course which contains approximately 119 acres (the "Property "). The Property has currently existing thereon: (i) an 18 hole golf course, (ii) a maintenance building (iii) a golf course club house building and (iv) and certain other structures. The Landlord intends to demolish the existing maintenance building, and club house and construct new facilities to replace same. Within the new golf course club house facility (the "Club House ") the Landlord desires to lease certain facilities (the "Premises" hereinafter defined) to Tenant so that Tenant may conduct on the Premises restaurant and banquet facilities that are open to the public. The Landlord shall require of the Tenant the operation of the newly constructed restaurant and banquet facilities in a professional manner as further set forth in this Lease. 1.2 It is the further intent of the parties hereto, that the primary purpose for the Property and the Premises is to serve any and all golfing functions that may be scheduled by the Landlord for the Property and Tenant for the Premises. ARTICLE 2 GRANT OF LEASE 2.1 Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises outlined in the sketch attached hereto and incorporated herein as Exhibit A (the "Premises ") which includes the banquet and restaurant facilities of the Arboretum Golf Course Club House located at 401 Half Day Road, Buffalo Grove, Illinois 60089. 2.2 Landlord hereby -grants to Tenant the exclusive right to Tenant to operate a restaurant and banquet facilities on the Premises and Property. 2.3 Landlord hereby grants to Tenant the non - exclusive right to occupy certain dedicated portions of the Club House and adjacent areas to conduct restaurant, food service and banquet operations. 2.4 Landlord hereby g rants to Tenant the non - exclusive right to access other areas around the Club House including but not limited to patios and golf course grounds, for purpose of providing beverage cart service and outside delivery of food and beverages. 2.5 Opening Schedule. The Club House to be constructed by the Landlord is expected to be completed in the third quarter of calendar year 2002. Both Landlord and Tenant, upon execution of this Lease, shall jointly create a "Transition Schedule" to facilitate operation of the Premises as soon as practical after issuance of either a Certification of Occupancy or final completion of the Club House. 2.6 Identity of Interest. The execution of this Lease or the performance of any act pursuant to the provisions thereof shall not be deemed or construed to have the effect of creating between Landlord and Tenant the relationship of principal or agent or of partnership or of joint venture and the relationship between them shall be that only of Landlord and Tenant. ARTICLE 3 TERM; POSSESSION 3.1 Term. The term (the "Term ") of this Lease is ten (10) Lease Years, ending December 31, 2012, unless sooner terminated as provided herein. The term "Lease Year" is defined as that 12 month period commencing on January 1, and ending on December 31, of each calendar year. The first Lease Year shall commence on January 1, 2003, provided the Premises is ready for occupancy, and end on December 31, 2003. The initial occupancy of the Premises by the Tenant through December 31, 2002 shall not be considered a Lease Year although all terms conditions, rights and responsibilities within this Lease shall apply from the date of occupancy to both Landlord and Tenant. 3.2 Option To Extend. Tenant shall have the option to renew this Lease for two (2) additional five (5) year terms upon such terms and objective conditions as are mutually greed upon between Landlord and Tenant. enant shall give written notice o Landlord of intent to extend the Lease not less than one year prior to the termination of the previous term. By way of example, written notice shall be given by Tenant to Landlord by January 1, 2012 of its intent to extend said Lease as of January 1, 2013. Unless waived by Landlord, any option to extend shall not be granted if Tenant is in default on any of the terms, conditions, rights and responsibilities set forth in this Lease. 3.3 Possession. Tenant shall be allowed to have possession of the Premises pursuant to the Transition Schedule as set forth in section 2.5 hereof. Said Transition Schedule shall be developed to permit Tenant to have limited possession of the Premises, only with Landlord's written permission, for the purpose of installing equipment and furnishings prior to the initiation of business. K 3.4 De osits. Tenant agrees that in the final year of the initial Term of this Lease (201 , i as well as the final year of any option periods (2017 and 2022), that any deposits made for any banquet events to occur n the first six (6) months of the calendar years 2013, 2018 and 2023 shall be placed in an escrow account under the 'oint control of both Tenant and Landlord in order to protect the interests of both Tenant and Landlord in the execution of their individual responsibilities under the terms of this Lease. ARTICLE 4 RENT: UTILITIES 4.1 Waiver Of Rent. No rent shall be due or payable to the Landlord th from the Tenant or the 'time period from when Tenant takes possession of the Premises through March 31, 2003, provided building possession has been given to Tenant. 4.2 Percentage Rent. Beginning with the commencement of the 2003 golf season as determined by the Landlord's Director of Golf Operations (no later than April 1, 2003) and every January 1 thereafter, Tenant shall pay Landlord, as a percentage rental in any Lease Year, five percent (5%) of the first $2,000,000 of the total Adjusted Gross Receipts (as hereinafter defined collected by the Tenant from the operation of the Premises. In addition to said five (5 %) percentage rent, should the Adjusted Gross Receipts exceed $2,000,000.00 in any Lease Year, the Tenant shall ay the Landlord two and one -half percent (2.5 %) of the excess over $2,000,000.0. 4.3 Adjusted Gross Receipts. The term "Adjusted Gross Receipts" shall mean the dollar amount of all sales of merchandise and services and all revenues of every kind and character derived from, arising out of or payable on account of the operation of the Premises by the Tenant, including but not by way of limitation, all gross food, beverage and banquet sales delivered on the Premises regardless of where such sales may be booked or reserved. Adjusted Gross Receipts shall not include sales tax, gratuities, service charges, over- rings, discounts, comped meals or beverages or refunds. Additionally, for the purpose of calculating "Adjusted Gross Receipts" any deposits or advance payments to- 'Tenant shall be considered sales or revenue at the time they are applied against the cost of the event for which paid. 4.4 Manner Of Payment. All rent due from Tenant to Landlord shall be due on the first day o the second month after the month for which accounting is made. Tenant shall submit to the Landlord along with said rent payment, certified sales figures along with an operating statement to support the rent remittance which identifies Adjusted Gross Receipts. By means of example, rent due the Landlord for July 2004 will be due, with applicable reporting to support the remittance by September 1, 2004. Failure to remit rent by the due date shall subjject Tenant to a late penalty fee equal to the equivalent of one and a half percent (1. J %) per month, or portion thereof, until rent is paid to Landlord. 3 4.5 Utilities: Landlord and Tenant shall share on a square footage basis the cost of a utilities including electricity, gas and water for the Club House facility only. All bills for same shall be . Landlord's name and Tenant shall pay same as additional rent. Landlord shall invoice Tenant, with copies of original utility bills to support invoiced charges, the pro -rated charge to be determined as per Exhibit "A" hereto. Tenant shall pay Landlord within thirty (30) days after receipt of the invoiced pro-rated share of utilities. Landlord shall provide a record of computation used in determining utility charges due. Landlord and Tenant shall work together to maintain practices that will minimize the cost of utilities to both parties of this Lease. Additionally, Landlord will maintain the current telephone service for the Premises and Tenant will be invoiced monthly based on actual usage and line /service related charges for those lines /numbers assigned to Tenant, but only if service is billed as part of the Village's phone billing charges. Landlord shall provide a record of computations used in determining telephone charges due. Failure to remit utility invoices by the due date shall subject Tenant a late penalty fee equal to the equivalent of 1.5% per month, or portion thereof, until said invoices are paid to Landlord. 4.6 Audit Rights. For the purpose of ascertaining the amount of rent to be paid pursuant to this Lease, Tenant agrees to prepare and keep during the Term of this Lease adequate records including but not by way of limitation, Tenants Illinois Department of Revenue Sales Tax Return Form ST -1, which show Adjusted Gross Receipts on or from the Premises by Tenant. Upon reasonable request, Tenant shall make said records available for review and copying by Landlord's authorized agent or representative(s). Landlord shall exercise any ri hts to review records for any given Lease Year within 180 days after the end o�said Lease Year and only for that Lease Year. An exemption shall be granted to review records for prior Lease Years if there is evidence of fraud identified as part of any review. Landlord will pledge to keep such records confidential and not open to any public inspection if not in violation or contrary to any laws. ARTICLE 5 USE OF PREMISES; TERMS AND CONDITIONS 5.1 Permitted Use. Tenant shall use and operate the Premises as a first -class sit -down type of restaurant and banquet facility bearing in mind that the Premises is part of a mixed use building which includes a golf course operation. Tenants services shall be provided year around on the Premises. The Tenant will support golf outings with food and beverage service throughout the golf season and Tenant shall provide appropriate and competitive pricing for said events. M 5.2 Operational Standards. Landlord and Tenant shall Jointly develop written "Operational Standards" for Tenant's operation of the Premises. Said Operational Standards shall insure the operation of the Premises as a high quality restaurant and banquet facility. The Operational Standards shall be attached hereto as Exhibit B. Landlord reserves the right to approve Operational Standards that provide that banquets, outings and community based events are accommodated on he Premises. Tenant hereby warrants that it will operate the Premises as a restaurant and banquet facility throughout the full term otthis Lease. 5.3 Compliance with Laws and Insurance. Tenant will not make or permit to be made any use of the Premises which, directly or indirectly, is forbidden by public law, ordinance or governmental regulation, which may be dangerous to persons or property or which may invalidate or increase the premium cost of any policy, of insurance carried on the Club House or the Property or covering its operations; provided that if any increase in insurance premiums is caused by Tenant's occupancy or use of the Premises, Tenant shall pay to Landlord said additional amounts. Tenant shall not do, or permit to be done, any act or thing upon the Premises which will be in conflict with or a violation of any fire insurance policies covering the Club House. Tenant, at its sole expense, shall comply with all rules, regulations or requirements of governmental and quasi - governmental authorities applicable to the Premises, and shall not do, or permit anything to be done, upon the Premises or the Club House, or bring or keep anything thereon in violation of rules, regulations or requirements of the Village of Buffalo Grove, and any other governmental or quasi - governmental authority having jurisdiction. Tenant shall be responsible for obtaining and maintaining all permits and approvals required in connection with the improvements to be made by Tenant and for the operation of Tenant's business on the Premises including but not by way of limitation, Illinois liquor license and Village of Buffalo Grove liquor and business licenses. 5.4 Hours of Operation. Notwithstanding the provisions of any state statute or Vill4-g—eo-FB-uffalo Grove ordinance, Tenant's hours of operation shall be approved in advance by the Landlord which approval shall not be unreasonably withheld. The hours of operation shall be esta- blished between the Landlord and Tenant based upon responsible service standards, customer expectations, and the Tenant's business development objectives contained in the Annual Service Plan (as hereinafter defined). Landlord shall give reasonable consideration to changes of hours of operation based on seasonal considerations. However, any change in the hours of service will require a ten (10) day notice to Landlord prior to taking effect. 5.5 Contractual Relations. Tenant shall also include within any standard form of contract between it-s-el-f-a-HU their clients that the Landlord does not have any contractual obligations or responsibilities regarding said contract between Tenant and client. E ARTICLE 6 SECURITY DEPOSIT 6.1 Securily Deposit. Tenant shall provide to Landlord a Letter of Credit, in a orm satis actory to the Landlord's counsel, in the sum of Ten Thousand and No /100 ($10,000.00), Dollars as security for the full and faithful performance of the provisions of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may use, apply or retain all or any part of said Letter of Credit for the payment of any Rent and any other sum with respect to which Tenant is in Default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's Default, or to compensate Landlord for anyy other loss or damage which Landlord may suffer by reason of Tenant's Default. If any portion of said Letter of Credit is to be used or applied, Tenant, within five (5) days after written demand therefor, shall restore the Letter of Credit to its on final amount and Tenant's failure to do so shall be a material breach of this Lease. If Tenant fully and faithfully performs every provision of this Lease to be performed by it, said Letter of Credit shall be returned to Tenant within thirty (30) days after the expiration of the Term or any extension thereof and Tenant's vacation of the Premises. ARTICLE 7 CLEANING 7.1 Cleaning. Tenant shall maintain, clean and keep in good repair all areas related to the restaurant and banquet facility within the Club House and adjacent areas where food and beverage services will be provided from time to time, including the washrooms. Tenant shall coordinate with the Landlord's Director of Golf Operations to develop an acceptable level of service and standards for the cleaning of washroom areas. Tenant shall not be responsible for the cleaning of the locker room areas within the Club House unless circumstances require Tenant access to such areas. Tenant shall maintain, clean and keep in good repair all kitchen and beverage dispensing equipment including but not limited to, walk -in coolers freezers, ran es, and stoves and outside garbage /refuse and storage areas. Daily cleaning shaIl be concluded prior to opening on a daily basis. Landlord shall be responsible for maintaining and cleaning all other outside areas (including parking lots)) along with those portions of the Club House and adjacent areas committed to golf play. Tenant's area shall be maintained in a condition acceptable to Landlord's Health Officer. If Tenant receives violations from the Health Officer and does not take corrective action within the time limits prescribed within such violation, then Landlord may correct same and invoice Tenant for the costs to correct the violation(s). Failure to comply with the terms of this section will constitute a condition of default under this Lease. As part of cleaning the Premises, Tenant shall maintain a posted ledger in a form acceptable to the Landlord's Health Officer denoting periodic cleaning to public places such as washrooms, bar and restaurant areas. 0 ARTICLE 8 MAINTENANCE 8.1 Maintenance. Maintenance, replacement, repairs, upkeep and disposal of equipment and furnishings shall be the obligation of the Tenant. Tenant shall maintain a record of any and all maintenance performed on all equipment and furnishings that will be available at all times to Landlord. Landlord shall be notified prior to the disposal or removal of any equipment that is not goingg to be replaced by similar equipment. If equipment is not to be replaced, or shaIl be replaced with dissimilar equipment, approval shall be required of Landlord and said approval shall not be unreasonably withheld. All equipment that is installed by Tenant from time to time as replacement items equipment and furnishings shall also be maintained and repaired by Tenant. Landlord shall maintain all other of the areas of the Property in good repair including, but not limited to, sewers, utilities, heating and air conditioning systems. It is expressly understood by the parties hereto that notwithstanding anything to the contrary, the Tenant shall not be responsible for making any repairs to the parking lot on the Property. If Landlord should be required to repair any damage caused to Premises that is a direct result of the Tenant's operations, Tenant will be invoiced for the cost to perform such repairs. ARTICLE 9 KITCHEN EQUIPMENT AND FIXTURES 9.1 Kitchen E ui ment and Fixtures. Tenant, at its sole cost and expense, shall equip mises the itchen on the Pre including but not limited to, walk - in freezer(s), walk -in coolers, stoves, ovens, storage room fixtures and kitchen serving items. Tenant shall submit to Landlord for its approval, as 0iibit C to this Lease, a listing of all kitchen equipment and fixtures to be provided. Exhibit C shall contain the description of the item, manufacturer and cost estimate. Exhibit C will be completed after the execution of this Lease but before Tenant's occupancy of the Premises. ARTICLE 10 DINING ROOM, BAR AREA AND KITCHEN 10.1 Landlord's Work- Dining Room. Landlord shall be required to finish the dining room area on the Premises ( "Landlord's V6Tork "). Landlord shall establish a maximum budget that it will contribute to the dining room finishes for the following: V/ (a) Floor covering and carpeting grade (b) Wall covering and finishes (c) Electrical service connections, basic interior lighting system, and reasonable custom ceiling lighting to accommodate Tenant's lighting and layout plans (d) Wood trim doors, casement and completion of a basic bar system. (e) Grade and performance of room dividers (f) Sound and audio /video system (g) Grade and performance of window coverings (h) Ceiling Attached hereto as Exhibit D is a listing further defining Landlord's Work- Dining Room. 10.2 Landlord's Work- Kitchen. Landlord shall be required to construct and/or install the following in the kitchen on the premises: (a) Wall coverings (b) Tile flooring (c) Ceiling coverings (d) Utility stubs, to the identified point(s) of connection (e) Lighting (f) Range Hood Attached hereto as Exhibit D is a listing further defining Landlord's Work - Kitchen. 10.3 Tenant's Work. Tenant, at its sole cost and expense, shall be required to construct and equip the dining room and bar areas as follows ( "Tenant's Work "): (a) Upgrades to the Landlord's work (b) Specialty lighting fixtures (c) Bar upgrades, back bar, equipment for bar, and service bars E (d) Tables and seating, patio seating and tables /umbrellas (e) Hospitality items such as dishes, flatware, glassware, linens, table treatments and other serving appurtenances. (f) Connection to utilities Attached hereto as Exhibit E is a listing further defining Tenant's Work. 10.4 Dining Layout and Finishes. Tenant, at no cost to the Landlord, shall work in cooperation wit the Landlord's design professional(s) to provide opinions on the design of all dining spaces to maximize functionality and efficiency as well as aesthetics. The facilities will be complimentary to both the golfing and general public. The Tenant will be required to approve of any and all design plans that are developed b both Tenant and Landlord to indicate acceptance of the general layout and finishes. Not withstanding the foregoing, final wapproval of space design shall be retained by Landlord. Both Tenant and Landlord ill approve the final selection of hospitality items such as dishes, flatware, glassware, linens, table treatments and other items of a similar nature. All of the above shall be done as expeditiously as possible and the Landlord's approval shall not be unreasonably withheld. ARTICLE 11 RIGHTS OF FIRST REFUSAL 11.1 Ac uisition of Assets. Upon termination of this Lease, and providing that t e Tenant has not exercised its option to extend Landlord reserves the right of first refusal to acquire any and all assets provided by the Tenant, as identi -fed on Exhibits C and E hereto, and as said assets may be amended from time to time due to the disposal, removal and replacement of equipment and furnishings, at the fair market value. In addition to the foregoing assets any and all hospitality items (as identified in Section 10.4) shall also be considered assets for the purpose of this Section. Landlord has the right to have any values reviewed by it's independent accountants to affirm valuation. If both Tenant and Landlord cannot agree to a fair market value, such value shall be determined through an appraisal of such equipment, furnishin s and fixtures to be conducted by an appraiser to be retained by Landlord who shall conduct such appraisal and shall be paid by Landlord. Any appraiser shall not be denied access to review any and all equipment, furnishings and fixtures on the Premises for the purpose of determining their fair market value. Except for Tenant's default, the Landlord's right of first refusal shall be exercised by Landlord within one - hundred eighty (180) days prior to the termination of this Lease. 0 ARTICLE 12 ALTERATIONS 12.1 Alterations. After completion of the Landlord's Work and the Tenant's Work, Tenant shall make no alterations, additions or improvements to the Premises without the prior written consent of Landlord. All approved alterations, additions or improvements shall be at Tenant's expense. Any approved capital improvement alterations, additions or improvements shall become part of Landlord's property. ARTICLE 13 REPLACEMENT SCHEDULE 13.1 Replacement Schedule. Landlord shall establish a replacement schedule for carpeting, wall coverings, woodwork and finishes and window coverings. All replacement items shall be coordinated in color and quality with the entire premises. Tenant shall provide to Landlord a statement within the Annual Service Plan as to how a replacement schedule or program shall be undertaken for hospitality tems as well as how the performance of equipment and furnishings are evaluated for the purposes of upgrade or replacement. ARTICLE 14 OUTSIDE LIGHTING AND SIGNS 14.1 Outside Lighting. Any outside lighting of the Premises shall be done at Landlord's sole discretion and cost. Any outside lighting of exterior signage shall be done at Tenant's cost, unless waived or shared with the Landlord. 14.2 Signs, Tenant will cooperate with Landlord's Director of Golf Operations in designing and erecting signage. The Landlord's signage program will identify both the Arboretum Golf Course and the dining /banquet facilities. Any requests for additional signage will be reviewed by the Landlord. Tenant shall pay for the construction of any individual signs. Landlord and Tenant shall develop a budget and share costs in an equitable manner on joint signage. At termination of this Lease, any such signage shall become the ford's 10 ARTICLE 15 ASSIGNMENT AND SUBLETTING• CHANGE OF CONTROL 15.1 Assi nment and Sublettin . Tenant, without the prior written consent of Landlord in its sole discretion) in each instance shall not (i) assign, transfer, mortgage, pledges hypothecate or encumber or be su ;jected to any lien or charge, this Lease or any interest under it, (ii) allow to exist or occur any transfer of or lien upon this Lease or Tenant's interest herein by operation of law, (iii) sublet the Premises or any art thereof, or (iv) permit the use or occupancy of the Premises or any part thereo -, other than to conduct the operations of the Premises, by an other than Tenant and Tenant's agents and employees. In no event shall this Lease be assigned or assignable by voluntary or involuntary bankruptcy proceedings or otherwise, and in no event shall this Lease or any rights or privileges hereunder be an asset of Tenant under any bankruptcy, insolvency or reorganization proceedings. 15.2 Right to Terminate. Landlord shall have the option to terminate this Lease in the event Gregory Lundgren, Phyllis Dewey or John Green do not cumulatively have a majority ownership interest in Tenant. ARTICLE 16 ANNUAL SERVICE PLAN 16.1 Annual Service Plan. On or before December 1, 2002 and on or before December 1, of each Lease Year thereafter, Landlord and Tenant shall jointly prepare aplan for service ( "Annual Service Plan ") that will be applicable to the forthcoming Lease Year. The Annual Service Plan, shall include by not by way of limitation the following: (a) areas of service and maintenance on the Premises that need to be addressed; (b) procedures which coordinate in- season Saturday and Sunday service levels that meet or exceed the needs of golf and non -golf clientele recognizing that the primary emphasis will be on maintaining an acceptable, non- diminished,-level of service to the golfing public during these time frames; (c) procedures that will minimize any adverse impact that use of the Premises by Tenant might have on adjacent residential structures, including without limitation, any excessive noise and disruption to the tranquility of the neighborhood; (d ) a demonstration that Tenant can maintain a reasonable and adequate level of capitalization at all times in order to secure the financial and operational terms of this Lease; (e) review of the Operational Standards; 11 (f) review of service menus and pricing. ARTICLE 17 GENERAL CONDITIONS 17.1 Insurance. Tenant shall (during the Term and any extension hereof) maintain, at it's so Tecost, insurance acceptable to Landlord and such insurance shall be in the following minimum amounts: (a) Worker's Compensation at the required statutory levels. (b) Dram Shop ($1,000,000) with Landlord named as an additional insured therein. (c) General Liability ($1,000,000/$2 000,000 bodily injury and property damage). Landlord shall be named as an additional insured as its interest appears. Tenant shall not provide insurance to cover the parking lot. (d) Landlord shall provide fire and extended coverage on the Club House and Landlord's contents. Tenant will be responsible for .providing its own insurance covering the Premises equipment and inventory. Evidence of such insurance shall o furnished to Landlord prior to taking possession of the Premises. Tenant shall in addition to providing certificates of insurance to Landlord for the above named coverages, name the Village of Buffalo Grove as an additional insured on all coverages. Tenant does hereby indemnify and hold harmless the Landlord, its employees, officers and agents from any and all causes of action, claims, losses, injury, damages, legal expenses, fees and other costs that may arise from the operation of Premises, use of the Premises, and execution of this Lease by the Tenant. 17.2 Landlord Em to ee Discount. Tenant shall provide a ten percent (10 %) discount only on the sale o restaurant food and beverages to Village of Buffalo Grove employees and appointed and elected officials. Said discount shall also be provided to said employees' and officials' immediate families but only when dining with said employees and officials. Landlord will be responsible to issue identification to such employees and officials in a form acceptable to Tenant. 17.3 Gambling and Card Playing . All forms of gambling are prohibited on the Premises except those allowed under the Illinois Charitable Games Act. This includes all card playing, betting and other wagering activities which are deemed by Landlord to be not of suitable character and are prohibited from taking place within or upon the Premises. Any violation of this provision may be grounds for termination of this Lease. 17.4 Authorized Representatives. The only authorized agent of the Landlord shall be the Landlord's Village Manager, or designee, unless so noted 12 elsewhere in this Lease. The authorized agent of the Tenant shall be Gregory Lundgren, or any other person(s) he may designate in writing. 17.5 Liability. No personal liability shall attach to any person executing this Lease. 17.6 Removal of Personal Property. Tenant shall retain all rights to any business names, concepts or other proprietary interests established during the term of this Lease, and Landlord herein waives any claims to such interests. 17.7 Advertising and Marketing. Tenant will develop and maintain a program with Landlord to coordinate and prepare appropriate advertising and marketing program to promote both the Arboretum Golf Course as well as the Tenants restaurant and banquet services. This program will not preclude the Tenant from engaging in its own advertising and marketing program and any independent program will be reviewed by the Landlord as a matter of information. Landlord will as a part of the annual operating budget for the Arboretum Golf Course, include funding for appropriate marketing and advertising programs. 17.8 Dietary Requests. Tenant shall provide for any reasonable dietary needs as might be requested as an essential element of any banquet operation. 17.9 Coin Operated Amusement Machines & Tobacco Sales. No fixed coin operated amusement devices or tobacco product vending machines shall be allowed within the Premises. Tenant shall have the right to dispense tobacco products from service carts and bar(s) upon application and receipt of a Village of Buffalo Grove tobacco license. The Landlord shall review the need for any coin operated vending machines which will be incorporated into the Landlords golf operations (Pro shop or locker room). Any vending machines installed shall be subject to Landlord's licensing practices and ordinances. Landlord shall not install vending machines that dispense food or beverage products that may be in conflict with similar products to be sold by Tenant. ARTICLE 18 RIGHTS RESERVED TO LANDLORD 18.1 Ri hts Reserved To Landlord. Landlord reserves the following rights, exercisable without notice and without liability to Tenant for damage or injury to property, person or business and without effecting an eviction or disturbance of Tenant's use or possession or giving rise to any claim for setoff or abatement of Rent or affecting any of Tenant's obligations under this Lease: (a) To change the name of the Arboretum Golf Course (b ) To retain at all times, and to use after notice or in emergencies, pass keys tot the Premises, or in the event Tenant requests that Landlord not retain a pass key, Landlord shall have the right to use force to gain access to the Premises in the 13 event access is required in case of emergency, in which case the cost of repair shall be paid by Tenant; (c To exhibit the Premises at reasonable hours after prior notice to Tenant and to ecorate, remodel, repair, alter or otherwise prepare the Premises for re- occupancy at any time after Tenant vacates or abandons the Premises; (d) To enter the Premises at reasonable hours for reasonable puKposes, including inspection and supplying services, if any, to be provided to Tenant hereunder; _(e) To regulate access to telephone, electrical and other utility closets in the Club HHouse and to require use of designated contractors for any work involving access to the same; (f) To control and to prevent access to common areas and other non - generall public areas of the Club House and the Property; (g) Provided that reasonable access to the Premises is maintained and the business of Tenant is not interfered with unreasonably, to rearrange, relocate, enlarge, reduce or change corridors, exits, entrances in or to the Club House and to decorate and, at its own expense, to make repairs, alterations, additions and improvements, structural or otherwise, in or to the Club House or any part thereof, including for the purpose of connection with or entrance into or use of the Club House in conjunction with any adjoining or adjacent building or buildings, hereafter constructed, and may for such purposes erect scaffolding nd other structures reasonably required by the character of the work to be performed, and during such operations may enter upon the Premises and take into and upon or through any part of the Club House, including the Premises, all materials that may be required to make such repairs, alterations improvements or additions, and in that connection Landlord may temporarily close public entry ways, other _public spaces, stairways or corridors and interrupt or temporarily suspend any services or facilities agreed to be furnished by Landlord, all without the same constituting an eviction of Tenant in whole or in part and without abatement of Rent by reason of loss or interruption of the business of Tenant or otherwise and without in any manner rendering Landlord liable for damages or relieving Tenant from performance of Tenant's obligations under this Lease. Landlord, at its option, may make any repairs, alterations, improvements and additions in and about the Club House and the Premises during ordinary business hours and, if Tenant desires to have such work done at times other than business hours, Tenant shall pay all overtime and additional expenses resulting therefrom. Notwithstanding anything in this paragraph to the contrary, except as may be required by governmental authorities or to restore the Club House in the event of fire or other casualty, Landlord will not make any alterations or changes to the Premises, and will not make any changes in the Club House or Real Property that would change Tenant's entrances or exits, temporarily close access during Tenant's business hours, interrupt or suspend Tenants services or unreasonably interrupt Tenant's ability to operate the restaurant and banquet facilities. Any of the foregoing shall only take place after reasonable notice has been provided to the Tenant along with a schedule 14 of repairs or modifications to be undertaken, which further denote a approximation as to time of completion. (h) From time to time to make and to adopt such reasonable rules and regulations, for the protection and welfare of the Property, as Landlord may determine, and Tenant agrees to abide by and comply with all such rules and regulations. ARTICLE 19 DEFAULT 19.1 Events of Default. The occurrence of any one or more of the following matters constitutes a Default by Tenant under this Lease: (a) Failure by Tenant to ay any Rent or any other sums due hereunder within five (5) days after notice of -failure to pay the same on the due date; (b) Failure by Tenant to observe or perform any of the covenants with respect to assignment set forth in this Lease; (c) Failure by Tenant to cure, immediately after receipt of notice from Landlord, any hazardous condition which Tenant has created in violation of law or of this Lease; (d) Failure by Tenant to observe or perform any other covenant, agreement, condition or provision of this Lease, if such failure continues for thirt y (30 days after notice thereof from Landlord to Tenant; provided however, if such default of a nature which can not be cured within the thirty 30 clay period, Tenant shall have a reasonable time period, not to exceed ninety (90�. days, to cure such default so long as Tenant commences to cure such default during the initial thirty (30) day period and diligently proceeds to cure such default; (e) The levy upon, under writ of execution or the attachment by legal process of, the leasehold interest of Tenant; Tenant vacates or abandons the Premises (the transfer of a substantial part o the operations, business and personnel of Tenant to some other location being deemed, without limiting the meaning of the term "vacates or abandons," to be a vacation or abandonment within the meaning of this clause); Tenant becomes insolvent or bankrupt or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors, or applies for or consents to the appointment of a trustee or receiver for Tenant or for the major part of its property; (h) A trustee or receiver is appointed for Tenant or for the major part of its property and is not discharged within sixty (60) days after such institution. 15 (i) Failure to maintain all permits and licenses required in Section 5.3 Failure of Tenant to conduct its business in accordance with the Operating Standards established from time to time and as set forth in Exhibit B to this Lease. Landlord shall provide notice to Tenant upon the occurrence of an Event of Default. Notwithstanding anything to the contrary contained herein, Landlord shall not be obligated to provide the notices referred to in this Lease more than two (2) times durin any calendar year or ten (10) times during the term as they apply to matters in Ution 19.1 (a). At Landlord's election, such failure to pay shall become a non - curable default. 19.2 Ri hts and Remedies of Landlord. If a Default occurs Landlord shall have the rights and remedies herein a er set forth which shall �e distinct, separate and cumulative and shall not operate to exclude or deprive Landlord of any other right or remedy allowed it by law: (a) Landlord may terminate this Lease by giving to Tenant notice of Landlord's election to do so, in which event the Term of this Lease shall end, and all right, title and interest of Tenant hereunder shall expire, on the date stated in such notice; (b) Landlord may terminate the right of Tenant to possession of the Premises without terminating this Lease by giving notice to Tenant that Tenant's right to possession shall end on the date stated in such notice whereupon the right of Tenant to possession of the Premises or any part thereof sUl cease on the date stated in such notice; (c) Landlord may enforce the provisions of this Lease and may enforce and protect the rights of Landlord hereunder by a suit or suits in equity or at law for the specific performance of any covenant or agreement contained herein, or for the enforcement of any other appropriate legal or suitable remedy, including recovery of all moneys due or to become due from Tenant under any of the provisions of this Lease; and (d) Landlord shall have the right of first refusal to assume both ownership of, and any outstanding debt on, equipment, furnishings and fixtures within the kitchen and dining/banquet area. For debt to be assumed, Tenant and Landlord shall cause a fair appraisal of all equipment and furnishings to be conducted by an appraiser retained and paid for by Landlord. The amount of any debt assumed shall not exceed the fair market value of equipment and furnishings. Tenant shall remain obligated for the balance of any outstanding debt and shall provide evidence, as a condition of Landlord assuming any debt, that said balance not assumed by Landlord has been retired so that all Landlord's equipment and furnishings are free and clear of any liens or encumbrances. 16 If such debt is assumed, the surrender of all assets will be considered liquidated damages as a result of said default. Any loan obligation or other financing document executed in connection with the purchase of financing of equipment, furnishings and fixtures shall contain express terms requiring that the Landlord receive reasonable notice of any default and allowing a reasonable time for Landlord, at its sole discretion, to assume all rights and obligations under the instrument, without penalty or charge. 19.3 Right to Re- Enter. If Landlord exercises either of the remedies provided in Sections 19.2 a and (b), Tenant shall surrender possession and vacate the premises and immediate y deliver possession thereof to Landlord, and Landlord may, after prior notice, re -enter and take complete and peaceful possession of the Premises, without process of law full and complete license to do so being hereby granted to Landlord, and Landlord may remove all occupants and propert therefrom, using such force as may be necessary, without being deemed guilty in an manner of trespass, eviction or forcible entry and detainer and without relinquishing Landlord's rigght to Rent or any other right given to Landlord hereunder or by operation oflaw. ARTICLE 20 RETURN OF PREMISES 20.1 Surrender of Possession. At the termination of this Lease by lapse of time or of erwise or upon termination of Tenant's right of possession without termination of this Lease, Tenant shall surrender possession of the Premises to Landlord and deliver all keys to the Premises to Landlord and make known to Landlord the combination of all locks of vaults then remaining in the Premises, and, shall return the Premises and all equipment and fixtures of Landlord therein to Landlord in as good condition as when Tenant originally took possession or, ordinary wear, loss or damage by fire or other insured casualty, and damage resulting from the act of Landlord or its employees and agents excepted, failing which Landlord may restore the Premises and such equipment and fixtures to such condition and Tenant shall pay the cost thereof to Landlord on demand. Landlord reserves the right to demand that all Tenant's equipment, furnishings and fixtures be removed, at Tenants sole cost and expense, upon termination of this Lease. None of Tenant's equipment, furnishings or fixtures shall be removed from the Premises without prior notice to Landlord. 20.2 Survival. All obligations of Tenant under this Article shall survive the expiration of the Term or earlier termination of this Lease. ARTICLE 21 HOLDING OVER 21.1 Tenant shall pay Landlord for each day Tenant retains possession of the Premises or any part thereof after termination of this Lease, by lapse of time or 17 otherwise, $500.00 per day and Tenant also shall pay all damages, consequential as well as direct, sustained by Landlord by reason of such retention. Acceptance by Landlord of rent after such termination shall not constitute of itself a renewal. Nothing contained in this Section shall be construed or shall operate as a waiver of Landlord's right of reentry or any other right or remedy of Landlord. ARTICLE 22 NONWAIVER 22.1 No waiver of any condition expressed in this Lease shall be implied by any neglect of Landlord to enforce any remedy on account of the violation of such condition whether or not such violation is continued or repeated subsequently, and no express waiver shall affect any condition other than the one specified in such waiver and that one only for the time and in the manner specifically stated. Without limiting Landlord's rights under this Lease, it is agreed that no receipt of moneys by Landlord from Tenant after the termination in any way of the Term or of Tenanf s right to possession hereunder or after the giving of any notice shall reinstate, continue or extend the Term or affect any notice given to Tenant prior to the receipt of such moneys. It is also agreed that after the service of notice or the commencement of a suit or after final judgment for possession of the Premises, Landlord may receive and collect any moneys due and the payment of said moneys shall not waive or affect said notice, suit or judgment. ARTICLE 23 NOTICES 23.1 All notices and demands required or desired to be given by either part y to the other with respect to this Lease or the Premises shall be in writing and shall be delivered personally, sent by overnight courier service, prepaid, or sent . United States registered or certified mail, return receipt requested, postage prepaid, and addressed as herein provided. Notices to or demands upon Tenant shall be addressed to Tenant at the Premises 401 Half Day Road Buffalo Grove, Illinois 60089. Notices to or demands upon Landlord shall be addressed to Landlord attn. Village Manger at 50 Raupp Boulevard, Buffalo Grove, IL 60089. Notice's and demands shall be deemed given and served (a) upon receipt or refusal, if delivered personally, (b) one (1) business day after deposit with an overnight courier service, or �c) three ()) business days after deposit in the United States mails via certified mail. Either party may change its address for receipt of notices by giving notice of such change to the other party in accordance herewith. Notices and demands from Landlord to Tenant may be signed by Landlord, or its agents. ARTICLE 24 HAZARDOUS SUBSTANCES 11: 24.1 Defined Terms. (a) "Claim" shall mean and include any demand, cause of action, proceeding or suit for any one or more of the following: (i) actual or punitive damages, Losses, injuries to person or property, damages to natural resources, fines, fpenalties,, interest, contribution or settlement (ii) the costs of site investigations, easibility studies, information requests, health or risk assessments, or Response (as hereinafter defined) actions, and (iii) enforcing insurance, contribution or indemnification agreements. (b) "Environmental Law" shall mean and include all federal, state and local statutes, ordinances, regulations, and rules relating to environmental quality, health, safety, contamination and clean -up, including, without limitation, the Clean Air Act, 42 U.S.C. Section 7401 et sue.; the Clean Water Act, 33 U.S.C. Section 1251 et sew, and the Water Qualify Act of 1987; the Federal Insecticide Fungicide, and Rodenticide Act ('FI RA' ), 7 U.S.C. Section 136 et seq.; the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. Section 1401 et sec .; the National Environmental Policy Act, 42 U.S.C. Section 4321 et se.; the Noise Control Act, 42 U.S.C. Section 4901 et seq.; the Occupational Safety and Health Act, 29 U.S.C. Section 651 et seg.; the Resource Conservation and Recovery Act Olid RCRA "), 42 U.S.C. Section 6901 et sew., as amended b�y the Hazardous and Waste Amendments of 1984; .the Safe Drinking Water Act, 42 U.S.C. Section 300f et sec.�.z•, the Com teauthorization ehensive Environmental Response, Compensation and Liability Act (' I ERCLA" 42 U.S.C. Section 9601 et seq., as amended by the Superfund Amendments and Act, the Emergency Planning and Community Right -to -Know Act, and Radon Gas and Indoor Air Quality Research Act; the Toxic Substances Control Act ( "TSCA "), 15 U.S.C. Section 2601 et sec .; the Atomic Energy Act, 42 U.S.C. Section 2011 et sea.. and the Nuclear Waste Policy Act of 1982, 42 U.S.C. Section 10101 et seq.; and the Environmental Protection Act of Illinois (IEPA ), 415 ILCS 5/1 et sec., and state superlien and environmental clean -up statutes, with implementing regulations and guidelines, as amended from time to time. Environmental Laws shall also include all state, regional, county, municipal and other local laws, regulations and ordinances insofar as they are equivalent or similar to the federal laws recited above or purport to regulate Hazardous Materials (as hereinafter defined). (c) "Hazardous Materials" shall mean and include the following, including mixtures thereof. any hazardous substance, pollutant, contaminant, waste, by- product or constituent regulated under CERCLA; oil and petroleum products and natural gas, natural gas liquids, liquefied natural gas and synthetic gas usable for fuel; pesticides regulated under the FIFRA; asbestos and asbestos - containing materials, PCBs, and other substances regulated under the TSCA; source material, special nuclear material, by- product material and any other radioactive materials or radioactive wastes, however produced, regulated under the Atomic Energy Act or the Nuclear Waste Policy Act; chemicals subject to the OSHA Hazard Communication Standard, 29 C.F.R. § 1910.1200 et seq.; and industrial process and pollution control wastes, whether or not hazardous within the meaning of RCRA. 19 (d) "Manage" or "Management" means to generate, manufacture, process, treat, store, use, re -use, refine, recycle, reclaim, blend or burn for energy recovery, incinerate, accumulate speculatively, transport, transfer, dispose of, or abandon Hazardous Materials. (e) "Release" or "Released" shall mean any, actual . or threatened spilling, leaking, pumping, pouring emitting, emptying, discharging, injecting, escaping, leaching, dumping or Isposin of Hazardous Materials into the environment, as "environment' is defined in ERCLA. (f) "Response" or Respond" shall mean action taken in compliance with Environmental Laws to correct, remove, remediate cleanup, prevent, mitigate, monitor, evaluate, investigate, assess or abate the Release of a Hazardous Material. 24.2 Tenant's Obligations With Respect to Environmental Matters. During the term of this Lease, (a ) Tenant shall comply at its own cost with—all Environmental Laws; (b) Tenant shall not Manage,, or authorize the Management of, any Hazardous Materials on the Premises, including installation of any underground storage tanks, without prior written disclosure to and approval by the Landlord; (c) Tenant shall not take any action that would subject the Premises to permit requirements under RCRA for storage, treatment or disposal of Hazardous Materials; (d) Tenant shall not dispose of Hazardous Materials in dumpsters provided by Landlord for tenant use; (e) Tenant shall not discharge Hazardous Materials into Project drains or sewers; (f) Tenant shall not cause or allow the Release of any Hazardous Materials on, to or from the Property; and (g) Tenant shall arrange at its own cost for the lawful transportation and off -site disposal of all Hazardous Materials that it generates. 24.3 Copies of Notices. During the term of this Lease, Tenant shall provide Landlord promptly with copies of all summons, citations, directives, information inquiries or requests, notices of potential responsibility, notices of violation or deficiency, orders or decrees, Claims, complaints, investigations, judgments, letters, notices of environmental liens or Response actions in progress, and other communications, written or oral, actual or threatened, from the United States Environmental Protection Agency, Occupational Safety and Health Administration, Illinois Environmental Protection Agency, or other federal, state or local agency or authority, or any other entity or individual, concerning (a) any Release of a Hazardous Material on, to or from the Premises; (b) the imposition of any lien on the Premises; or (c) any alleged violation of or responsibility under Environmental Laws. Landlord and Landlord's beneficiaries, agents and employees shall have the right to enter the Premises and conduct appropriate inspections or tests in order to determine Tenant's compliance with Environmental Laws. 24.4 Tests and Reports. Upon written request by Landlord, Tenant shall provide Landlord with the results of appropriate reports and tests, with transportation and disposal contracts for Hazardous Materials, with any permits issued under Environmental Laws, and with any other applicable documents to ►W demonstrate that Tenant complies with all Environmental Laws relating to the Premises. 24.5 Tenant's Obligation to Respond. If Tenant's Management of Hazardous Materials at the Premises a) gives rise to liability or to a Claim under any Environmental Law, (b) causes a significant public health effect, or (c) creates a nuisance, Tenant shall promptly take all applicable action in Response. 24.6 Indemnification. Tenant shall indemnify, defend and hold harmless Landlord, its beneficiaries, its lenders, any managing agents and leasing agents of the Premises, and their respective a ents, partners, officers, directors and employees from and against any and all Maims arising from or attributable to any breach b Tenant of any of its warranties representations or covenants in this Article. enant's obligations hereunder shad survive the termination or expiration of this Lease. Landlord shall indemnify, defend and hold harmless Tenant, its beneficiaries, its lenders, any managing agents, partners, officers, directors and employees from and against any and all Claims arising from or attributable to any Landlord's actions. 24.7 Landlord's Notice. Landlord represents to Tenant that Landlord has received no notice of any violations of Environmental Laws relating to the Premises. ARTICLE 25 TITLE AND COVENANT AGAINST LIENS 25.1 (a) Landlord's title is paramount and always shall be paramount to the title of Tenant and nothing contained in this Lease shall empower Tenant to do any act which can, shall or may encumber the title of Landlord. Tenant covenants and agrees not to suffer or to permit any lien of mechanics or materialmen to be placed upon or against the Premises,, the Club House, the Property or against Tenant's leasehold interest in the Premises and, in case of any such lien attaching, to pay and remove the same within thirty (30) days. Tenant has no authority or power to cause or to permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon the Premises, the Club House or the Property, and any and all liens and encumbrances created by Tenant shall attach only to Tenant's interest in the Premises. If any such liens so attach and Tenant fails to pay and remove the same within thirty (3 0) days, Landlord, at its election, may pay and satisfy the same and in such event the sums so paid by Landlord, gay from the date of Landlord's payment thereof at the rate of 1.5% er month for amounts owed to Landlord by Tenant, shall be deemed to be additional rent due and payable by Tenant at once without notice or demand. (b) Landlord acknowledges that the Tenant may obtain financing which would require a secured interest in certain assets. Tenant's shall provide Landlord with evidence of financing which shall acknowledge the Landlord's right of first refusal. 21 ARTICLE 26 EXTERMINATOR SERVICE AND CERTAIN MAINTENANCE 26.1 Without limiting Tenant's obligations under Article 7 or 8 of this Lease, throughout the Term, Tenant shall cause extermination services, including treatment for insects, spiders, rats, mice, moles and other rodents, to be provided to the Premises by a reputable exterminator on a monthly basis, or more often as Landlord, in Landlord's reasonable discretion, may require, at Tenant's expense. 26.2 Without limiting Tenant's obligations under Article 7 or 8 of this Lease, the kitchen waste and exhaust systems, including the grease trap and all risers, piping and fans used in connection with such waste and exhaust systems, whether located in or outside of the Premises, and all other pipes or ducts used b Tenant, shall be maintained in good repair, and so as to meet the highest standards of cleanliness and health, in a manner consistent with the operation of a first -class restaurant and banquet facilities in accordance with all applicable laws, codes and regulations of any governmental authority having jurisdiction, at Tenant's expense. 26.3 Without limitation of any of the foregoing, Tenant, at it's expense, shall perform routine maintenance in order to properly maintain the grease trap and basin to prevent, at all times, any overflow or discharge of grease at the surface of the grease trap manhole. Plumbing pipes from the Club House to the grease trap /basin shall be rooted and cleaned regularly by Tenant as often as necessary to prevent clogging or discharge into the basement of the Club House. In the event of any such overflow or discharge, Tenant shall be responsible for all costs of cleanup of the overflow or discharge, including all costs of repair, restoration or replacement of property damaged by such overflow or discharge, unless such overflow or discharge is caused by a third party and such costs are not covered by insurance carried or required to be carried b Tenant. Landlord shall be responsible to maintain and correct any structural by to the grease trap/basin as well as the sanitary sewer line from the grease trap /basin to the sewer main. Tenant shall be responsible for any charges incurred by Landlord to clear any blockage caused by -failure to maintain grease trap/basin that may develop between grease trap/basin and sewer main. 26.4 Tenant shall clean the grease pans on a regular basis. Tenant shall cause the exhaust fan if any, to be maintained in a good state of condition and repair so as to provide the air flow velocities required b applicable codes and regulations. Landlord shall cause all fire detection and f re suppression systems and mechanisms to be maintained in accordance with all applicable laws, codes and regulations and the requirements of all applicable policies of insurance and insurance inspectors. Notwithstanding the foregoing, Tenant shall maintain the range hood fire suppression system. 26.5 Landlord shall maintain in good working order and condition and in accordance with the rules and regulations of all appropriate insurers and all M applicable laws, codes and regulations of any governmental authority, all fire extinguishing systems in the Premises. 26.6 Within ten (10) days after Tenant's execution of any maintenance or extermination contracts, or after Landlord's request therefor at any time during the Term, Tenant shall furnish to Landlord copies of all such contracts. Tenant, within ten 410) days of Landlord's request therefor, shall also provide evidence to Landlord of payment for services performed under such contracts. If Tenant fails to enter into extermination and maintenance contracts reasonably cceptable to Landlord under which services are provided to Landlord's satisfaction, without limitation of Landlord's other rights under this Lease, Landlord shall have the right, at Tenant's sole cost and expense, to contract and to pay for such services to be performed on behalf of Tenant. Tenant shall reimburse Landlord for one hundred ten percent (110 %) of costs, expenses and damages incurred by Landlord in connection with any failure by Tenant to perform its obligations under this Article. ARTICLE 27 GARBAGE Tenant shall be responsible for wrapping, covering and otherwise securing garbage and transporting such garbage to the dumpster area frequently enough so that it will not accumulate in the Premises, for arranging for a dumpster to be located where designated by Landlord from time to time and for frequent removal of garbage from the dumpster so long as such removal complies with applicable codes and requirements of the Village of Buffalo Grove; provided, however in the event of complaints by neighbors which are not resolved, such removal shall be daily. Tenant shall be responsible for repairing and paying for any damage to walls or other parts of the Club House caused in transporting garbage and shall immediately clean up any spilled refuse. ARTICLE 28 GENERAL REQUIREMENTS All services to the Premises by Tenant shall be provided by a contractor or contractors reasonably satisfactory to Landlord capable of working in harmony with contractors retained by Landlord to rovide services to or perform work in the Club House, whose union affiliations shall not result in labor claims or disputes with contractors emp oyed by Landlord an shall not result in any labor actions being filed against Landlord or the Club House, and whose presence in the Club House shall not create security or coordination problems with Landlord or its respective agents, contractors, employees, licensees and invitees. 23 ARTICLE 29 ODORS Tenant shall use every effort to prevent odors from the Premises from emanating to any part of the Club House or outside of the Premises; other than normal and customary odors that result from cooking exhaust, including mesquite wood grilling which is hereby approved by Landlord. ARTICLE 30 MISCELLANEOUS 30.1 Modifications in Writing. No modification, waiver or amendment of this Lease or of any o its conditions or provisions shall be binding upon Landlord, or Tenant unless in writing signed by Landlord and the Tenant. 30.2 Headings. The headings of Articles and Sections are for convenience only and do not 1— imi expand or construe the contents of the Articles and Sections. 30.3 Time of Essence. Time is of the essence of this Lease and of all provisions hereoF 30.4 Severability. The invalidity of an provision of this Lease shall not impair or affect in any manner the validity, en ay or effect of the rest of this Lease. 30.5 Entire Agreement. All understandings and agreements, oral or written, previously made between the parties hereto are merged in this Lease, which alone fully and completely expresses the agreement between Landlord and Tenant. This Lease cannot be amended or modified except by a written instrument executed by Landlord and Tenant. 30.6 Force Majeure. If Landlord or Tenant fails to perform timely any of the terms, covenants or conditions of this Lease to be performed by Landlord or Tenant and such failure is due in whole or in part to any strike, lockout, labor trouble, civil disorder, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrections, war, fuel shortages, accidents, casualties, acts of God, acts caused directly or indirectly either party, or by their agents, employees, contractors licensees or invitees, or any other cause beyond the reasonable control of Landlord, or Tenant then Landlord or Tenant shall not be deemed in default under this Lease as a result of such failure and any time for performance by Landlord or Tenant provided for herein shall be extended by the period of delay resulting from such cause. 30.7 Shareholder of Tenant. Notwithstanding anything to the contrary contained herein or any law, Landlord shall not be entitled to seek and/or secure a personal or deficiency judgment against tsha�, officers o y of Tenant., �t rHtb e,r� qha Pr j OZ1 30.8 Exhibits. It is hereby acknowledged by and between the parties that the Exhibits rye lected in the Lease agreement have not been created and are therefore not attached to the Lease. The parties agree to work together within a reasonable time frame to reach agreement on said Exhibits. The Lease is conditioned upon and subject to the arties reaching agreement on the Exhibits; and the inclusion of the Exhibits into the Lease agreement. There shall be mutual agreement on all Exhibits hereto (Exhibits A -E) prior to Tenant's scheduled possession of the Premises. IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed as of the date first above written. LANDLORD: VILLAGE OF BUFFALO GROVE Vi lage President ATTEST: Vil age Clerk Af aly- TENANT: PROGRESSIVE MANAGEMENT SERVICES, LLC Presi ent ATTEST: 25 S etary EXHIBIT A SKETCH OF THE PREMISES (To be inserted ) 26 EXHIBIT B OPERATIONAL STANDARDS (TO BE INSERTED) 27 EXHIBIT C KITCHEN EQUIPMENT LIST Manufacturer Description Cost 1. (to be inserted) EXHIBIT D LANDLORD'S WORK LANDLORD'S WORK- DINING ROOM (TO BE INSERTED) LANDLORD'S WORK - KITCHEN (TO BE INSERTED) 29 EXHIBIT E TENANT'S WORK (TO BE INSERTED) 30