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  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
  • CAPE HAZE DENTAL, P.A. vs. CARDAVANT, LLCOther - Matters not falling within the Other Civil Subcategories document preview
						
                                

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Filing # 180568690 E-Filed 08/25/2023 05:00:15 PM IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT IN AND FOR CHARLOTTE COUNTY, FLORIDA CIVIL DIVISION CAPE HAZE DENTAL, P.A., Plaintiffs, V. Case No.: 22000821CA CARDAVANT, LLC, a Florida Limited Liability Company Defendant. / DEFENDANT’S MOTION FOR FINAL SUMMARY JUDGMENT COMES NOW, the Defendant, CARDAVANT, LLC, a Florida Limited Liability Company (the “Defendant’”), by and through its undersigned counsel and pursuant to Florida Rule of Civil Procedure 1.510, hereby moves this Court for the entry of final summary judgment against the Plaintiff, CAPE HAZE DENTAL, P.A. (the “Plaintiff’), and as grounds therefore states as follows: INTRODUCTION 1 The Plaintiff filed its Second Amended Complaint on February 10, 2023 by stipulation of the parties. DIN 21. 2. Count I of the Second Amended Complaint seeks a declaratory judgment Law Offices FARR, FARR, determining the rights and obligations of the parties pursuant to a lease signed by the Plaintiff EMERICH, HACKETT, CARR and the Defendant’s predecessor in interest on March 14, 2017. AND HOLMES, P.A. ATTORNEYS AT LAW 3 Count II of the Second Amended Complaint seeks damages against the 99 NEsBIT STREET PUNTA GORDA, FLORIDA 33960 Defendant under a theory of promissory estoppel. 237 NOKOMIS AVE SOUTH VENICE, FLORIDA 31285, 4 For the reasons outlined below, there is no genuine dispute as to any material fact on any of the Plaintiffs claims and the Defendant is entitled to judgment as a matter of law. FACTUAL BACKGROUND 5, On March 14, 2017, Plaintiff and Southwest Properties, LLC, a Florida Limited Liability Company (“Southwest”), entered into a Lease Agreement (the “Lease”) for possession of the premises located at 8501 Placida Road, Unit #1, Cape Haze, Florida 33946 (the “Property”) for an initial term of five years with the option to renew. The Lease is attached hereto as Exhibit A. 6 On November 21, 2018, Southwest sold the Property to the Defendant and a Warranty Deed conveying ownership of the Property to the Defendant was duly executed and recorded. See Exhibit B. 7 Upon the sale, the Defendant became the Plaintiffs landlord under the terms of the Lease. 8 Section 4 of the Lease states, in pertinent part, as follows: Commencing on the third anniversary of the Commencement Date (each an “Anniversary Date”), and on each Anniversary date thereafter, the rental and common area maintenance rent in effect shall be increased by two percent (2%) over that which existed on the Commencement Date or the immediately Law Offices preceding Anniversary Date. FARR, FARR, EMERICH, Exhibit A, p. 2. Simply put, rent would increase 2% per year upon each anniversary date HACKETT, CARR AND HOLMES, P.A. ATTORNEYS AT LAW starting on March 14, 2019. Addendum A to the Lease explicitly states the amount of base rent ‘9 NESAIT STREET due each month for each year of the Lease. See Exhibit A, Addendum A. Notably, base rent PUNTA GORDA, FLORIDA 33950 237 NOKOMIS AVE SOUTH for year five was to be $1,817.85. ‘VENICE, FLORIDA 34785 9 On March 14, 2019, the Plaintiff informed the Defendant that it was experiencing financial hardship and requested that Plaintiff be permitted to pay the base rent amount for the preceding two years, to wit: $1,713.00. 10. Although the Defendant was entitled to collect the increase in rent, it agreed to abate the increase and not collect the 2% increase it was entitled to collect under the Lease for year three. 11. On or about March 14, 2020, the Plaintiff again informed the Defendant that it was experiencing financial hardship due to the COVID-19 pandemic and requested that Defendant not collect the additional 2% increase for year four of the Lease. 12. The Defendant again abated the rent increase and did not collect the additional 2% it was entitled to for year four. 13. On the fifth anniversary of the Lease, Plaintiff yet again approved another abatement of the rent increase for year five. 14. The Defendant agreed to another abatement of the additional rent increase for year five. 15. On March 25, 2021, the Plaintiff exercised its option to renew the Lease for another five-year period from March 14, 2022, through March 13, 2027. As set forth in section Law Offices 3 of the Lease, during this period the parties would be bound by the same terms and conditions FARR, FARR, EMERICH, of the Lease, “except that Tenant shall pay as rental during the renewal term or terms the sums HACKETT, CARR AND HOLMES, P.A. ATTORNEYS AT LAW as determined in Section 4 below.” Exhibit A, p. 1. As stated, section 4 of the Lease contained 99 NESGIT STREET the language of 2% rent increase per year and incorporated by reference Addendum A to the PUNTA GORDA, FLORIDA, 33960 237 NOKOMIS AVE SOUTH Lease, which sets forth the base rent for each year. Exhibit A, Addendum A. VENICE, FLORIDA 34285, 16. Prior to the start of the sixth year of the Lease, the Defendant notified the Plaintiff that it intended to end the abatement of rent increases and collect the full amount of rent going forward, which was an increase of 8% from the original rent, but only a 2% increase from rent from year five to year six. 17. In response, the Plaintiff filed this action against the Defendant seeking a determination of its rights and obligations under the Lease and arguing that the Defendant was only entitled to increase rent by 2% from the first two years of the Lease because it abated such increases for years three, four, and five of the Lease. 18. After this action was initiated, the Defendant learned that the Plaintiff made substantial improvements to the Property apparently at a cost of over $150,000 without the written approval of the Defendant. 19. Plaintiff's Second Amended Complaint also questions the methodology regarding Plaintiffs obligation for taxes and insurance under the Lease. 20. Defendant had previously provided the methodology for taxes and insurance on November 20, 2022, without objection by Plaintiff. LEGAL STANDARD 21. Effective May 1, 2021, the Florida Supreme Court substantially amended Law Offices Florida Rule of Civil Procedure 1.510 to mirror Federal Rule of Civil Procedure 56, adopting FARR, FARR, EMERICH, the federal summary judgment standard articulated in Celotex Corp. v. Catrett, 477 U.S. 317 HACKETT, CARR AND HOLMES, P.A. ATTORNEYS AT LAW (1986). See in re: Amendments to Florida Rule of Civil Procedure 1.510, 309 So. 3d 192 (Fla. 99 NESBIT STREET PUNTA GORDA, FLORIDA 2020). 33950 237 NOKOMIS AVE SOUTH 22. Florida Rule of Civil Procedure 1.510 now states, in pertinent part, that “[tJhe VENICE, FLORIDA 34285, court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. The court shall state on the record the reasons for granting or denying the motion. The summary judgment standard provided for in this rule shall be construed and applied in accordance with the federal summary judgment standard.” 23. Under the Florida Rule of Civil Procedure 1.510(c)(1), a party asserting that a fact cannot be genuinely disputed must support the assertion by citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, admissions, interrogatory answers, or other materials. 24. It is clear that the pleadings, exhibits, and other matters and documents referenced in this Motion support Defendant’s assertion that no genuine dispute as to any material fact exists in the above-styled cause and that Defendant is entitled to judgment as a matter of law. ANALYSIS The crux of the Plaintiffs argument is that (1) the Defendant is not permitted to increase rent to $1,854.00 in the sixth year of the Lease either because it orally promised it would not take such a position, or the Lease explicitly prohibits that increase; (2) the Defendant failed to provide sufficient information to the Plaintiff so that it could calculate the amount of taxes and Law Offices insurance to be added to monthly rent; and (3) the Plaintiff detrimentally relied on an oral FARR, FARR, EMERICH, promise by the Defendant and made substantial improvements to the Property at a cost of over HACKETT, CARR AND HOLMES, P.A. ATTORNEYS ATLAW. $150,000. For the reasons that follow, the Defendant is entitled to final summary judgment as 99 NESAIT STREET a matter of law with respect to all of these issues. PUNTA GORDA, FLORIDA 33960 237 NOKOMIS AVE SOUTH, L. The Lease is Clear and Unambiguous VENICE, FLORIDA 34285 At the outset, it is important to note that the clear and unambiguous language of the Lease entitles the Defendant to final summary judgment in this matter. “If a contract’s terms are clear and unambiguous, the language itself is the best evidence of the parties’ intent and its plain meaning controls, warranting summary judgment.” Pearson vy. Caterpillar Financial Services Corp., 60 So.3d 1168, 1171 (Fla. 4"" DCA 2011). The Lease allows the Defendant to charge rent at $1,854.00 per month starting in year six, it contains no provision that the Defendant is required to provide any additional information to support its calculation of taxes and insurance, and it explicitly requires the Plaintiff to submit plans and obtain written approval from the Defendant before making material alterations to the Property. The Plaintiff argues that “[c]ontrary to that specifically negotiated verbiage in the Lease, Defendant increased the monthly rent by eight percent (8%) on March 14, 2022. The option to renew language is clear and prohibits the stacking of multiple two percent (2%) increases in one year.” DIN 21. Second Amended Complaint § 15. This argument conveniently disregards Addendum A to the Lease, which sets forth the Lease Rent Schedule. Exhibit A, Addendum A. That addendum shows the two percent increase per year starting in year three. The Plaintiff misconstrues the Defendant’s conduct in not collecting the full amounts due for years three, four, and five for somehow signifying a change in the amounts due under Addendum A. The Law Offices Plaintiff's theory renders Addendum A utterly useless. Courts “will not interpret a contract in FARR, FARR, EMERICH, such a way as to render provisions meaningless when there is a reasonable interpretation that HACKETT, CARR AND HOLMES, P.A. ATTORNEYS AT LAW does not do so.” Moore v. State Farm Mut. Auto. Ins. Co., 916 So.2d 871, 877 (Fla. 2006). The 99 NESGIT STREET Defendant’s unwillingness to collect the full amounts did not alter the terms of the Lease or PUNTA GORDA, FLORIDA, 33960 237 NOKOMIS AVE SOUTH eliminate Addendum A. On the contrary, the Lease explicitly stated the monthly rent due each VENICE, FLORIDA 34285, year with two percent increases. It logically follows that rent for year six would be a two percent increase from the rent shown for year five. The clear terms of the Lease allow the Defendant to charge an additional two percent from year five to year six, i.e. $1,817.85 to $1,854.00. Next, the Plaintiff argues that the Defendant had an implied “good faith” obligation to provide information to the Plaintiff “in order for Plaintiff to calculate the correct amount of taxes and insurance to be added to the monthly rent” pursuant to the Lease. DIN 21. Second Amended Complaint § 18. When a contract is clear and unambiguous, “the contracting parties are bound by those terms, and a court is powerless to rewrite the contract to make it more reasonable or advantageous for one of the contracting parties.” Fernandez v. Homestar at Miller Cove, Inc., 935 So.2d 547, 551 (Fla. 3d DCA 2006) citing Emergency Assocs. Of Tampa, P.A. v. Sassano, 664 So.2d 1000, 1003 (Fla. 2d DCA 1995). Not only does the Plaintiff fail to point to a provision in the Lease requiring such action on the part of the Defendant, but undersigned counsel actually provided such information in correspondence dated November 1, 2022, rendering the Plaintiffs claim, to the extent there was one, moot. See Exhibit C. The Plaintiff also argues it suffered damages as a result of representations made by the Defendant which it relied on in opting to renew the Lease for an additional five years. The damages stem from material improvements to the Property which allegedly cost over $150,000. Notwithstanding the fact that verbal representations cannot alter the terms of the Lease (further Law Offices discussed below), the Lease expressly prohibits such improvements. Regarding material FARR, FARR, EMERICH, alterations to the Property, the Lease states, in pertinent part, as follows: HACKETT, CARR AND HOLMES, P.A. ATTORNEYS ATLAW Tenant covenants and agrees with Landlord that Tenant shall not make any material additions or alterations or structural changes in or about the Premises, 99 NESBIT STREET without first submitting plans and specifications thereof to Landlord, and PUNTA GORDA, FLORIDA 33950 obtaining the written approval of Landlord, which approval shall not be 237 NOKOMIS AVE SOUTH unreasonably withheld. VENICE, FLORIDA 3205 Exhibit A, p. 4. The Plaintiff fails to allege that it submitted plans and specifications to the Defendant or that it obtained Defendant’s written approval prior to making alterations to the Property. As such, the Plaintiff cannot recover damages for conduct that violates the terms of the Lease. The clear and unambiguous terms of the Lease bely the arguments made by the Plaintiff. The Lease explicitly states the amount of rent owed each year. Although the Defendant agreed not to collect the additional two percent owed for years three, four, and five, it did opt to collect the full amount owed for year six. There is no provision in the Lease which requires the Defendant to supply the Plaintiff with information regarding calculating the taxes and insurance on the Property, and even if that were the case, the Defendant did just that on November 1, 2022. Exhibit C. Finally, the damages claimed by the Plaintiff are for alterations made to the Property in violation of the Lease. IT. The Integration Clause To the extent the Plaintiff argues that the Defendant made verbal promises to the Plaintiff which the Plaintiff relied upon and subsequently opted to renew the Lease and make substantial improvements to the Property, such verbal promises are unenforceable as a matter of law. Section 31 of the Lease is an integration clause. It states as follows: Law Offices Entire Agreement. This Lease contains all of the agreements between the FARR, FARR, parties hereto, and it may not be modified in any manner other than by EMERICH, agreement in writing signed by all the parties hereto or their successors in HACKETT, CARR interest. AND HOLMES, P.A. ATTORNEYS AT LAW Exhibit A, p. 13. An integration or merger clause “is a highly persuasive statement that the ‘S9NESBIT STREET PUNTA GORDA, FLORIDA 33950, parties intended the agreement to be totally integrated and generally works to prevent a party 237 NOKOMIS AVE SOUTH VENICE, FLORIDA, from introducing parol evidence to vary or contradict the written terms.” Jenkins v. Eckerd 3285, Corp., 913 So.2d 43, 53 (Fla. 2005). Addendum A to the Lease clearly sets forth the amount of rent owed during each of the first five years of the Lease. It can readily be seen that rent increases by two percent each year starting in the third year. Exhibit A, Addendum A. Despite the clarity of the Lease, the Plaintiff contends the Defendant promised “there would not be an annual rent increase more than the two percent (2%) that was specified and allowable under the lease dated March 14, 2017.” DIN 21. Second Amended Complaint 4 7, 30. The Plaintiff attempts to use the Defendant’s alleged verbal promise to alter what is clearly spelled out in the Lease. The only bearing the Defendant’s oral promise has on the Lease is its ability to collect the two percent increase from years three through five. To be clear, the Defendant does not seek a ruling that permits it to recover increased rent in those years. The Defendant’s promise to forego the increase in those years extends only to those years and does not alter what is clearly spelled out in the Lease, to wit: its ability to collect increased rent from years six and beyond. To the extent this verbal promise in any way modifies or conflicts with the language in the Lease pertaining to rent for year six, such a promise is unenforceable due to the integration clause cited above. ITT. The Waiver Clause The Plaintiff's argument is further rebuffed by section 23 of the Lease, which states as follows: Law Offices Waiver. In the event Landlord does not insist on a strict performance of any of FARR, FARR, the terms and conditions hereof, such shall not be deemed a waiver of the EMERICH, rights or remedies that Landlord shall have to insist upon strict performance of HACKETT, CARR any such terms or conditions in the future or any other conditions and terms of AND HOLMES, P.A. ATTORNEYS AT LAW this Lease. 99 NESAIT STREET Exhibit A, p. 10. An anti-waiver clause “applies when a breach of a condition or term occurs, PUNTA GORDA, FLORIDA, 33960 237 NOKOMIS AVE SOUTH and the landlord does not exercise his rights upon breach under the lease. It prevents the VENICE, FLORIDA 34285 assertion of the defense where the landlord may declare a default based upon a subsequent breach of the same condition.” Husky Rose, Inc. y, Allstate Ins. Co., 19 So. 3d 1085, 1088 (Fla. 4" DCA 2009). In the instant case, the Defendant’s generosity in not collecting the full amounts owed in years three, four, and five does not act as a waiver of the 2% yearly increase in rent. Similar to the reasoning with respect to the integration clause, the Defendant’s agreement to abate rent in the past had no impact on its ability to collect full rent in the future. The clear terms of the Lease still control and rent increases from $1,817.85 in year five to $1,854.00 in year six. Because the Defendant’s act of abating the increase in rent for three years does not act as a waiver of all rent increases throughout the life of the Lease, the Plaintiff's argument fails. IV. The Statute of Frauds The Plaintiff's claims are further barred by the Statute of Frauds. The Lease fits squarely within the Statute of Frauds because it is a lease for a period longer than one year. See § 725.01, Florida Statutes. Assuming arguendo the Defendant did orally modify the Lease which the Plaintiff relied upon in opting to renew the Lease for another five years, such modification is unenforceable under the Statute of Frauds. See DK Arena, Inc. v. EB Acquisitions I, LLC, 112 So.3d 85, 97 (Fla. 2013) (holding “[uJ]nder the Statute of Frauds, any modification to the contract was unenforceable unless memorialized in a written document signed by the parties or their authorized representatives. Absent an amendment that complied with the requirements of Law Offices the Statute, the parties were bound by their written agreement.”) citations omitted. In DK Arena, FARR, FARR, EMERICH, the plaintiff argued it detrimentally relied upon a verbal promise by the defendant that it would HACKETT, CARR AND HOLMES, P.A. ATTORNEYS AT LAW extend the due diligence period under a real estate purchase contract. Jd at 96 — 97. The Florida ‘99 NESAIT STREET Supreme Court held “the judicial doctrine of promissory estoppel may not be used to PUNTA GORDA, FLORIDA 33950 37 NOKOMISAVE SOUTH circumvent [the Statute of Frauds].” Id at 95. VENICE, FLORIDA. 3285 Turning to the case at hand, the Plaintiff has not produced and cannot produce any modifications to the Lease, reduced to writing, altering the rent owed during the pendency of the Lease. Therefore, the terms of the written Lease control, which clearly show that rent for year five was $1,817.85, which, pursuant to section 4 of the Lease, increased by two percent in year six. Given Florida Supreme Court precedent, any claim that the Defendant orally promised different terms, even if true, is unenforceable. Promissory estoppel is no exception to the Statute of Frauds, so the Plaintiff's arguments must fail. CONCLUSION For the reasons stated herein, no genuine issue of material fact exists with regards to the Plaintiffs claims and the Defendant is entitled to final summary judgment. Whether it be by operation of interpretating the clear and unambiguous terms of the Lease which allows the Defendant to raise rent to $1,854.00 in year six of the Lease, or that oral promises are unenforceable to modify the terms of the Lease, the Plaintiff's argument that it should not be paying increased rent lacks merit. Furthermore, to the extent the issue is not already moot, there is no provision in the Lease requiring the Defendant to supply the Plaintiff with information on how it calculates taxes and insurance under the Lease. Finally, the Plaintiff cannot recover damages for improvements made to the Property in violation of the terms of the Lease. Law Offices FARR, FARR, EMERICH, WHEREFORE, the Defendant respectfully requests that this Court enter final HACKETT, CARR AND HOLMES, P.A. ATTORNEYS ATLAW summary judgment in favor of the Defendant on Counts I and II of the Plaintiff's Second ‘99NESGIT STREET Amended Complaint, finding that the Defendant is entitled to attorney’s fees and costs pursuant PUNTA GORDA, FLORIDA 33950 237 NOKOMIS AVE SOUTH to the Lease, and award such other and further relief as this Court deems just and proper. VENICE, FLORIDA 24285 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing document has been furnished by the Florida Courts E-Filing Portal to Plaintiff's counsel, Warren R. Ross, Esq. at warren.ross@wotitzkylaw.com and donna@wotitzkylaw.com, on this 25" day of August, 2023. FARR, FARR, EMERICH, HACKETT, CARR & HOLMES, P.A. By: /s/ Wid W. Sunder Will W. Sunter, Esq. Florida Bar No. 011448 wsunter( @farr. com alambert@farr.com | ctout@farr.com 99 Nesbit Street Punta Gorda, Florida 33950 Telephone: (941) 639-1158 Facsimile: (941) 639-0028 Attorney for the Defendant Law Offices FARR, FARR, EMERICH, HACKETT, CARR AND HOLMES, P.A. ATTORNEYS AT LAW ‘99 NESBIT STREET PUNTA GORDA, FLORIDA 33950 237 NOKOMIS AVE SOUTH VENICE, FLORIDA 4285 EXHIBIT i LL A LEASE This is a Lease between SouthWest Properties, LLC, a Flori da limited liability company, (the “Landlord”) and Cape Haze Dental, P.A., a Florida Professional Corporation (the “Tenant”), dated as of March 14, 2017, s In consideration of the rents to be paid hereunder. , the mutu al promises and covenants contained herein, and for other good and valuable considerat tion, Landlord and Tenant hereby covenant and agree as follows: 1. Demise of Premises. Landlord does hereby lease to Tenant, and Tenant does hereby rent from Landlord, the real property located at: 8501 Placid a Road, Unit # 1 (consisting of 1400 square feet), Cape Haze, Florida 33946, together with all improvements lo cated thereon and all of Landlord's easements and privileges appertaining to or used in connectio: n therewith, hereinaf- ter referred to as the “Premises”. 2. Term. The initial term (the “Initial Term” ) of this Lease shall be for a term of five (5) years commencing on March 14, 2017 (the “Commencement Date”), and termi nating on March 13 ,2022 (the “Termination Date”). 3. Option to Renew. Provided and on condition this Lea: se is not previously cancelled by either party; as in this Lease provided, by operation of law or ot! th erwise; and that Tenant has during whole of the Initial Term complied with and the performed all covenants and conditions Lease on Tenant’s part to be performed; then Tenant in this shall have the option to renew this Leas for a further term of two (2) separate five (5) year e options to renew commencing, with the first option to renew if exercised commencin; ig on 14th day of March 2022 and terminating on the 13" day on March 2027, and the second option to renew c ommencing March 14, 2027 and minating on the 13th day of March 2032, subje ter- ct to the same terms and conditions as Lease contained; except that Tenant shall pay as in this rental duri ing the renewal term or terms the as determined in Section 4 below. sums Tenant shall provide Landlord written ni otice of exercise to each option to renew not one hundred eighty (180) days prior to the ¢ Term less than ination Date of the then existing term. 4. Rental. Tenant agrees to pay to Landlord, as rental hereunder, the annual sum of See Ad- dendum “A” attached hereto and made a part hereof. All monthly installments as set forth in Addendum rental is payable in consecutive “A” , together with any tax imposed by of Florida on rentals. commencing on the Commen the State cement Date. and payable in advance on same day of each month thereafter at: P.O. the Box 2210. 5 Boca Grande Florida 33921 address as Landlord shall hereafter designate or such other in writi ing. In addition to the above, Tenant shall pay L Landlord, as additional rent, the annual sum of payable in consecutive monthly installment N/A 's of N/A for Premises common area main tenance. In the event Landlord has not received the full amo unt of any rent, rent tax or com maintenance payment by the end of five (5) mon area days fro 1G% Tenant 1 Landlord charge to Landlord. The amount of the charge will be five percent (5%) of the amounts due. The late charge shall be due and payable immediately but shall be paid only once on each late payment. Commencing on the third anniversary of the Commencement Date (each an ‘ ‘Ani niversar Date”), and on each Anniversary date thereafter, the rental and common area mainte Anniversary nance rent in effect shall be increased by two percent (2%) over that which existed on the Commencement Date or the immediately preceding Anniversary Date. Such increases shall be determined by Landlord who shall notify Tenant thereof. Tenant shall pay the increased amount to the Land- lord for the period of time elapsing between the Anniversary Date and notice of such increase upon request by Landlord. Thereafter the increase shall be p: ayable equally with the regular rent- al payments. In addition to the above, Tenant shall reimburse Landlord, as additional rent, for Tenant’ $ prora- ta share of Landlord’s casualty insurance premiums for and Landlord’ s real proper ty taxes levied against Landlord’s real property of which the Premises are a part for e ach year of the term of this Lease. For the purpose of computing the above mentioned prorata share of real property taxes and casu- alty insurance premiums, the parties acknowledge the Premises constit ute 1400 SQFT of the to- tal real property of which the Premises are a part; and therefore, acknow ledge such percentage shall apply to Landlord’ s total real property tax bill and casualty insurance premiums for each year of this Lease. Landlord acknowledges receipt of the sum of Thirt five Hundred Fo: Five Dollars and Ninety One Cents ($3,545.19) which sum re presents a security deposi t of ($ 1,713.00 (the “Se- curity Deposit”), and the first month's rent, including sales tax . If Tenant faithfully complies with the terms and provisions of this L Lease, the Security Deposi t shall be returned to Tenant up- on the termination hereof. In the event it that Tenant fails to compl y with the terms and Provisions of this Lease, Landlord may use the Securi ity Deposit to the extent necessary for the purpose of correcting any defaults of Tenant. Landlor d is permitted to comm: ingle the Security Deposit, last month’s rent and sales tax thereon with Landlord’ s other funds; and, no interest shall accrue on such funds in favor of Tenant. 5. Condition of Premises. The Premises are leased subject to any and all conditions that an ac- curate examination of the Premises would disclose. Tenant agrees to indemnify Landlord against any and all claims for personal injury or property damage c: ‘aused by any defects in the Premises. Tenant agrees to indemnify and hold Landlord harmless a gainst any and all claims for personal injury or property damage arising from the use or occupan: cy of the Premises by Tenant. 6. Subordination. This Lease shall be subj ect and subordinat e at all times to the lien of any mortgage or mortgages, now encumbering the Premises, or which Landlord may at any time place against the Premises. Tenant agrees to execute such documents as may be requested by any mortgagee to evidence the subordinati ion contained herein so long as a non-disturbance agreement accompanies such subordination request. CE ieae Tenant Landlord Tenant agrees to provide at any time, within ten (10) days of Landlord's written request, a state- ment certifying that this Lease is unmodified an id in full force and effect or, if there have been modifications, that this Lease is in full force and ef fe ‘ect as modified and stating the modifications, and the dates to which the rent and other charges hi ‘ave been paid in advance, if any. It is intend- ed that any such statement delivered pursuant to his parag raph may be relied upon by any pro- spective purchaser or mortgagee of the Premises. If Tenant fails to execute and deliver any such certificate within fi fteen (15) days after Tenant's receipt of such request, then (i) such failure shall constitute a mat erial default by Tenant under this Lease, and in such event Tenant agrees to pay to Landlord as liquidated damages therefore (and in addition to all equitable remedies available to Landlo rd) ai in amount equal to Two Hun- dred Fifty Dollars ($250.00) per day for each day that Tenant fail. s to so deliver such certificate to Landlord after the expiration of the fifteen (15) day period, and (ii) Tenant irrevocably ap- points Landlord as its attorney-in-fact, in Tenant's name, to execu ite such instrument. 7. Repair of Premises. Tenant will keep the interior of the building on the Premises, including plumbing (and any greas: e interceptor/trap), HVAC, cable communication, telephone, smoke/fire detection, and electrical equipment servin; ig the Premises in good repair and in clean and sanitary condition during the term of this Lease and any renewal terms, at Tenant S expense, and will comply with all governmental ordinances and directions of public officers in connection with such maintenance during the term of this Lease; and at the end of the Lease term newal term hereof, as the case may be, will yield up the and/or any re- Premises and such equipment to Land- lord in good condition, ordinary wear and tear, decay and damage by the elements only excepted. Tenant further agrees to obtain and maintain during the term of this Lease and any renewal thereof, at Tenant’s cost, a HVAC maintenance e contr act for the service and maintenance of the HVAC equipment for the Premises, Tenant fu ther agree s to maintain all glass, including plate glass and any special glass, store front or equi pment, at Tenant’s expense, and shall replace the same with glass of the same size and quality in the event of breakage or damage to any such glass. Landlord agrees at its own expense, to maintain the foundation, exterior walls, roof, and common areas of the Premises: ; Which include, but are not limited to, drive and parking area landscaping, drainage, lighting and parking Stripi s, ng: except for any port ion thereof where Tena has remodeled or modified or installed fixtures and nt equipment. ‘ Tenant shall be responsible for making any changes to the interior of the Premises required to bi ring the Premises into compli- ance with any governmental regulations including, but not limited to, the Clean Air Act and the Americans with Disabilities Act. Any repairs requi red to be made by Landlord, which are made within thirty (30) days after Landlord receives not written notice of t he need for such repair, may be made by the Tenant with the prior written consent of the Landlo rd. 8. Alterations by Tenant. Landlord agrees that Tenan t may make, at Tenant’s own expense, any minor nonstructural alterations, repairs, repla cements or additio: ns to the building on the Premises, provided: (a) Any such alterations, re pairs, replacements or addit ions shall not lessen the value of the said building as it shall be at th © commencement of this Lease; and, G& Tenant Landlord (b) Tenant shall perform such alterations, repairs, repla cements or additions, in accordance with the statutes, ordinances, rules, regulations and ord. ers of all public or quasipublic authorities having jurisdiction thereof and in accordance with th e rules and regulations of the local board of Fire Insurance Underw riters; and, (c) The Premises shall at all times be ke; pt free and clear of all mechanic's, material men's, labor or other liens or claims of liens, and T enant agrees to indem nify and save harmless Land- lord from all claims, demands and liability, including damag e to person or property arising out of or