AMENDMENT NO. 1 TO ASSIGNED LEASE AGREEMENT Amendment No.l to the Assigned Lease Agreement This Amendment No. 1 to the Lease Agreement between the Government of the U.S. Virgin Islands and K9's on Patrol Service, Inc., executed on March 9, 2006, and assigned to Paradise PawsVI, LLC,on December 21, 2018, madethis day of , 20 , by and between the GOVERNMENT OF THE U.S. VIRGIN ISLANDS, acting through its Commissioner of the Department of Property and Procurement, (hereinafter "Lessor") and, Paradise PawsVI, LLC, whosemailing address is P.O.Box 9216St. Thomas, U.S. VirginIslands 00801, (hereinafter "Lessee"). WITNESSETH: WHEREAS, the Government of the U.S. Virgin Islands entered into a Lease Agreement with K9's on Patrol Service, Inc. to lease Parcel No. 180-1 Submarine Base, No. 6 Southside Quarter, St. Thomas, Virgin Islands, consisting of 49,317.7 U.S. square feet of land more-or-less. The Premises will be used for the operation of a K9 Kennel, training facility for the dogs, retail sales and office, warehouse facility, and for other related activities; and WHEREAS, the Lease Agreement was signed by the Governor of the U.S. Virgin Islands on December 9, 2005, and was ratified by the Legislature of the U.S. Virgin Islands on March 09, 2006, and assigned to Paradise Paws VI, LLC, on December 21, 2018; and WHEREAS, the Lessor and Lessee agrees, the Assigned Lease Agreement provides Lessee with the option to renew the Lease for four (4) additionalterms of five (5) years each by giving written notice ofsuch renewal at least thirty (30) days prior to the expiration ofthe Lease Term, and Lessee has exercised three (3) ofthe four (4) additional terms of five (5) years; and WHEREAS, Lessor acknowledges Lessee is in the third (3'^ ) renewal period of the Assigned Lease Agreement, and the Lessor and Lessee agrees to four (4) additional terms of five (5) years each by giving written notice of such renewalat leastthirty (30) days prior to the expirationofthe Lease Term; and WHEREAS, the parties desire to amend Article II Paragraph 2.02 Options: NOW, THEREFORE, in consideration ofthe mutual covenants and agreements herein contained, and intending to be legally bound by this instrument, the parties mutually agreed to amend the Lease Agreement ratified by the Legislature ofthe Virgin Islands on March 09, 2006, as follows; 1. Article II Paragraph 2.02 Options is hereby amended by deleting all language contained therein and replacing it with new language as follows; Article II Paragraph 2.02 Options: IfLessee is not in default in the performance ofany material condition of this Lease at the expiration of the Initial Term, Lessee shall have the option to renew this Lease for eight (8) additional terms of five (5) years each (each a "Renewal Term") at the rent provided for in Paragraph 3.03 hereof by giving written notice of such renewal at least thirty (30) days prior to the expiration then current term. Lessee's Initials Paradise Paws. LLC Parcel No. 180-1 Submarine Base, No. 6Southside Quarter, St. Thomas, V.S.V.i Amendment No. I 2 2. Except as expressly amended herein, all other terms and conditions set out in the assigned Lease between the Government of the U.S. Virgin Islands and K9's on Patrol Service, Inc., executed on March 9, 2006, and assignedto Paradise Paws VI, LLC, on December21, 2018, shall remain in full force and effect. [INTENTIONALLY LEFT BLANK - SIGNATURES FOLLOW] Lessee's Initials Paradise Paws, LLC Parcel No. 180-1 Submarine Base, No. 6Soulhside Quarter, Si. Thomas, IJ.S.V.I. Amendment No. I Page 3 IN WITNESS WHEREOF, the parties herein have hereunto set theirhands and sealson the day and year first above written. WITNESSES: LESSEE: PARADISE PAWS VI, LLC C:>rv ne. aiwi specilkally to Uhifbnh Ual^ty ConqiatLyActofdteViiigtit Island^ Chsgrtcr lS;ThleT3; Viipn JsIaiidS ctidc' (Section 110i»^ esq,), asthe saipo nmy beamended fiom time totiirie, do make and file these.AiticlcsofQt^iznlioniinwriting anddo ceiti^: Hiename ofthe LLC shall beParadise Paws YL LLC; the LLC shall do business as LLC ARTICLE IL o o ?3 -V o -— O ZO o The principal's oifBce ofthe LLC in theVirginIslandsisloca^ all8D^ m 03 rrt o m m o Sybase St thomas^U.S Vhginislands 00802 anddie mailingaddressisP.O^oi^ld^ StkThomas USVI 0080.1. Thename ofthe resident agentofthe LLC isParis Nicholson IVwhose addressis 13B-5 EstateMandahl Apli5t2,StThomasV.|g^nd^ mailing address is P.O. Box9216StThomas USVI00801. S o m ARTICLE in. The name,physical ondmailingeaidlress ofthe organizerisasfollows: Name MoilhigAddress Phyrical Address. Paris O. Nicholson IV P.Oi Box ^16 St. Tfamnas V.100801 13b-5&tateMandahl Apt#2St.Thomas-V.100802 ARTICLE IV. Tefrttory oftJie Vtrgin Islands Creation- LLC 3 Pa8e(s) n4(S$16102 The LLCis to haveperpetualexistence. ARTICLE V. The minimumamountofcapital with uhlch IXC will cotnmexice business is $1,000.00 LtSD. ARTICLE VI. This LLC wll be member managed. The members of the LLC shall not be liable for its debts and obligations. IN WITNESSWHEREOF, we havemade,signedandacknowledge These Articles ofOrganization Uiis/^^day ofDecember 2013 ^ I t r; Paris O.Nicholson IV ^ S o 541- ^ 5 54 c*z . m o ^ Territoryofthe Virgin Islands )ss: o -o r^ District ofStlhomas and StJohn ) ^ ^ Subscribed acd sworn to before me this ofDecember 2013. i ^ 1-^ -» CD -r ,i\' CERTIFICATE OF RESOLUTION I, Shemura Nicholson of Paradise Paws VI, LLC a duly organized LLC in the Virgin Islands and in good standing, hereby certifies that ithas adopted the following resolution, which has not been modified or rescinded: RESOLVED,thatParadise Paws VI,LLChereby authorizes ParisNicholson IV,President to sign the LeaseAgreement, submitall requireddocuments, and take all such other steps asmaybenecessary to effectuate saidLease Agreement withtheGovernment ofthe Virgin Islands. Secretary Date: ^ .2^ 8TAT6 COUNTY^ J 5 ^ lL. RN TO AND SUJSQRiBED BEFORE ME THIsZO daY OP I " . /^ORNTOANOSUeSCI TOMEONbasis of 8ATIBFACT0RY EVIDENCE TOBEPERBON^B) WHO APPEARED BEFO IEXffRES Lj?^{Icf tgQ 4^ NOTARY PUBLIC MY COMMISSION iJri.M joatNt /•. /'''nil-/yiiri' 'jt/' »'H.I M' A|iiii i;/'' i,iuih\ ..M)ii It H' ' S, hSVIUl.iial •'4^ ♦^ ' 'u.. EXERCISE OF THIRD OPTION TO RENEW (FEBRUARY 27, 2026) -Ai^ADISE PAWS VI. LLC St. Thomas. U.S. Virgin Islands Email: paradisepawsvi@gmail.com I Phone: (340) 727-7297 Date: February 27.202(^ To: Government of the Virgin Islands Department of Property and Procurement 8201 Sub Base St. Thomas, VI00802 RE: Notice of Exercise of Third Renewal Option Lease Premises: 180-1 Sub Base, St. Thomas, VI00802 This letter serves as formal written notice that Paradise Paws VI, LLC (Tenant^ hereby elects to exercise its Third Renewal Option under the terms and conditions ofthe existing lease agreement with the Govemment of the Virgin Islands, Department of Property and Procurement ("Landlord") fortne premises located at 180-1 Sub Base, SL Thomas, VI 00802. Pursuant to the lease provisions, Tenant is providing this notice priorto the expirationof the current renewal term, which is set to expire on March 31, 2026, in order to maintain the lease in full force and effect while the parties continue discussions and processing of any proposed amendments. Tenant intends for this renewal to extend the lease in accordance with the terms outlined in the agreement, subject to any mutually agreed-upon modifications or amendments currently under consideration. Please confirm receipt of this notice and advise of any additional documentation or steps required to formalize this renewal. Thank you for your attention to this matter. We look forward to continuing our tenancy and working collaborativeiy throughout the renewal and amendment process. Paris O. Nicholson IV Owner / Operator Paradise Paws VI, LLC EXERCISE OF SECOND OPTION TO RENEW (SEPTEMBER 13, 2022) WO?: September 13,2022 Commissioner; Anthony D.Thomas Cc: Deputy Commissioner: Vincent Richards Department of Property & Procurement 8201 Subbase Suite #4 St. Thomas. VI 00802 Dear Commissioner Thomas, I'm writing this letter to inform the Department of Property & Procurement of my intent toexercise the second renewal option to extend the lease for Paradise Paws VI of 180-1 Sub Base, St. Thomas. VI 00802, for another five-year term. The initial lease agreement, recorded in 2006. was for a ten-year term with four five-year renewal options. In addition to exercising the second of the fourrenewal options. I'm also requesting thatan additional (4)five-year term renewal options beadded to the agreement. These renewal options would provide security and stability as we areprojected to invest another $125,000.00 in facility improvements and expansion. 1appreciate your consideration and hope The Department of Property and Procurement can honor this request. I look forward to continuing our business relationship. Thank you. Paris O. Nicholson IV President, Paradise Paws Vl (352)408-1399 r\ V- LU' ^ • - i^-n SUB BASE ST. 1 DKSEPWASVI.COM EXERCISE OF FIRST OPTION TO RENEW (OCTOBER 26, 2015) Mm Im K9 oil Patrol Services P.O. Box 9216 St'lliomas VI, 00801 i)ara(lisei)awsvi@innail.com 340.727.7297 October 26, 2015 Mr. Randolph Bennett G>mmissioncr of Properly& Procurement 8201 Sub Base S'" Floor St Thomas VI, 00801 Re: Exercise of Renewal Option Dear Mr. Randolph: Pursuant tosection 2.02 ol llic lease agreement, we would like to exercise ourfirst five year renewal option. We are currently operatingout of 180-1 Sub Baseunder K9 on PatrolServices. Please accept lliis letter asourfonni intent todo so. II you have any questions, or require additional infonnation, please contact usatany time. Wann Regards, Paris O. Nicholson IV K9's on Patrol Service, Inc. Fully Executed Lease Agreement (March 9, 2006) 'V W^Rlfle LEASE AGREEMENT -- 9j59ftH ^ Reconfs of S.TKWK8/ST JBHM iSCffilSER OF KEDS GOVERNMENT OF THE VIRGIN ISLANDS DEPARTMENT OF PROPERTY AND PROCUREMENT and K9'S ON PATROL SERVICE, INC. PREMISEIS: Parcel No. 180-1 Submarine Base, No. 6 Soutbside Quarter, St. Thomas, Virgin Islands, consisting of approximately 49317.7 sq. ft and a portion of Parcel No. 180-3 Submarine Base, No. 6< Soutbside Quarter, St. Thomas, Virgin Islands, consisting of approximate^ 62,808.1 sq. ft. m SI 81 0| 81 81 n 8 Q 8 _ia K9*S OnPatrolServfl^nc. Parcel No. Submarine Base, No. 6 Southside Quarter, StTtmuii^Vb^ Islands Page2ori9 TABLE OF CONTENTS ARTICLE I 5 Premises And Use 5 Premises 5 Use ARTICLE II 5 Term 5 Term Options .....6 Failure to Give Possession 6 Holding Over 6 ARTICLE III 6 Rent. 6 Initial Rent 6 Reduction in Initial Rent ...... 6 ReaJjustment ofRent ^ .1:...;..;...... 6 Late Payment Charges Unpaid Rent, Fees and Charges ARTICLE IV Improvements Improvements Titleto Improvements 8 Location and Improvements 8 Repairs by Lessee 8 Failure of Lessee to Repair 8 Excavation and Sorting 9 ARTICLE V 9 Mechanic's Lien 9 Mechanic's Lien 9 ARTICLE VI 10 Insurance and Indemnity 10 K9*S On Patrol Se Inc. Parcel No. 180-1, Submarine Base, No. 6 Southside Quarter, St Thomas, Virgin Islands Page 3 of19 Liability Insurance Indemnity Non-Liability Rre and Extended Coverage by Lessee ARTICLE VII Entry By Lessor Access to Premses Easement for Pipes and Water Storage Tank Fadiity.... ARTICLE VIII Condemnation Notice of Condemnation Rights of Lessor and Lessees Taking of Leasehold Total Taking Partial Taking Article IX Cancellation, Tennination and Ass^nment and Transfers Cancellation Termination Repossessing and Reletling Assignment and Transfer Subleasing Article X General Terms and Conditions Notices Non-discrimination Officials not to Benefit Agreement made in the Virgin Islands Counterparts Cumulative Rights and Remedies Interpretation: Agreement made inWriting K9*SOd PatrolSenflfInc. Parcel No. IM-I, Snbinarine Base, No. 6 Sonthside Quarter, St Tbootts,Vii]^l^nds PagedofiS PaiBgraph Headings 15 Invalidity or Illegality of Provisions 15 Successors and Assigns 15 Broker 15 Approvals Required 15 Article XI 15 Conflict Of Interest 15 Conflict of Interest 15 R^hts of Holderofthe Leasehold Mortgage 16 Compliance with Laws 16 Waiver 16 Enfbroment of Lease Tenns 17 T~T 83/2|BK iflrRecoHs of 9i59M Offi£::7 ST THOHSm JffiiN Ulun 0. WffiT SMITH KCQR9ER OF DEEDS K9*S On Patrol ServicVpibc. ParcelNo.180-1, Submarine Base, No. 6 Southside Quarter, St tbomas. Virgin Islands {Page 5 of19 LEASE AGREEMENT day of THIS LEASE made this 2005 by and between the GOVERNMENT OF THE VIRGIN ISLANDS, acting through its Commissioner of Property and Procurement, hereinafter "Lessor" and K9's On Patrol Iseivice, Inc., whose mailing address is P.O. Box 8721, St. Thomas, Virgin Islands 00801, hereinafter "Lessee". IwiTNESSETH: In consideration of the mutual covenants and agreements herein set forth it is jhereby agreed: ARTICLE I iPremises And Use 11.01 Premises: The Lessor hereby leases to the Lessee and the Lessee hires and takes finom the Lessor all of that certain parcel located at Parcel No. 180-1 Submarine Base, No. 6 Southside Quarter St. Thomas, Virgin Islands, consisting of 49317.7 sq. ft. and a portion of Parcel No. 180-3 Submarine Base, No. 6 Southside Quarter St. Thomas, Virgin Islands, consisting of62808.1 sq. ft. The aforesaid property is shown on the BGM Engineers &Surveyors map file no. 5073GD dated July 25, 2005, a copy of which is attached and made a part hereof. 11.02 Use: The Lessee shall use the hereby leased premises for operatton of a K9 kennel, training facility for the dogs, retail sales and office, warehouse facility and anyother relal^ activities. ARTICLE II farm .01 .02 Term: The term of this Lease shall be fora period often (10) years commencing on the first day of the month following approval by the Govemor and the Legislature of the Virgin Islands. Options: If Lessee is notIn default inthe performance ofany material condition of this Lease at the expiration of the initial term, Lessee shall have the option to renew this Lease for four (4)five (5)years at the rent provided for in paragraph 3.03 hereof by giving written notice ofsuch renewal atleast thirty (30) days prior to the expiration ofthe Lease term. In the case ofanydefault, which cannot be cured prior to the expiration of the initial term, Lessee may still exercise the option to renew if at suchtime itis with reasonable diligence proceeding to cure such default. .03 Failure to Give Possession: The Lessor shall not be liable for failure to give possession ofthe premises upon commencement date by reason ofthe fact that K9'S On Patrol Se Inc. Pared No. 180-1, Snbmarine Base, No. 6 Soutbside Quarter, St. Thomas,Vlr^n Islands Page 6 of19 the demised premises are not ready for occupancy, or due to a prior lessee wrongfully holding over or any other person wrongfully In possession of for any other reason; In such event the rent shall not commence until possession Is given or Is available, but the term herein granted shall not be extended. 2.04 HoldlnoOver: IfLessee remains Inpossession after expiration of the term hereof, without Lessor's express consent and without any distinct agreement between Lessor and Lessee, Lessee shall become a mon^ to month Lessee and there shall be no renewal, of this Lease by operation of law. During the period of any such holding over, ail provisions of this Lease shall be and remain In effect except the rent provisions. The rent during this hold over period shall be two hundred (200%) percent of the rent payable for the last calendar month of term of this Lease, Including renewals or extensions. The Inclusion of the proceeding sentence In this Lease shall not be constructed as Lessor's consent for Lessee to hold over. ARTICLE III Rent 3.01 3.02 3.03 Initial Rent The Lessee shall pay to the Lessor an annual rent of Forty Eight Thousand Dollarsand No Cents ($48,000.00) payable at Four Thousand Dollars and No Cents ($4,000.00) In equal monthly Installments forthe first five (5) years of this Lease. Payment of annual rent shall be made In equal monthly Installments In advanceon the first day ofeach and every month during the term thereof, without any previous demand by Lessor, provided, however. If possession of the premises Is granted to the Lessee at a date after the first of the month then In such eventthe rentforsuch first month shallbe prorated. The rent shall be paid at Lessor's ofRce at Building No. 1 Subbase, St. Thomas, Virgin Islands 00802, together with any other sum due as additional rent as provided herein. Reduction In Initial Rent: Lessee shall be required to pay reduced rent of Two Thousand Dollars and No Cents ($2,000.00) permonth andten percent (10%) as a late fee during the Construction Period hereinafter defined InSection 4.01. The reduction In rent shall terminate upon the expiration of the Construction Period, as defined In Section 4.01. This r^uced monthly rental rate will not beavailable beyond the Construction Period. Should all of the improvements stated in Secb'on 4.01 be completed prior to the time allotted for the Construction Period, rental In Section 3.01 will commence. Readlustment ofRent The rent payable under this Lease shall beadjusted after ^e first five (5) years and every five years thereafter. Including any renewal term. In accordance with the increase ofthe Consumer Price Index as established by the U.S. Department of Labor, Bureau of Labor Statistics for "ALL Items, ALL Urban Consumer (1867-100%)" (CPI) as follows, provided, however, no adjustments In rental for any five (5) yearadjustrnent shall be" Increased more than 5% over any preceding year period. K9*S On Patrol Se Inc. Parcel No. 180*1, Snbmarine Base, No.6 Sonthside Quarter, St Thomas,Vii^ Islands Page7ofl9 A. The CPI as of the first month of the initial term and as of the first month of each subsequent year shail be base price indexand CPI as of the month immediately precedingthe first of any year after the initial term shall be the current price index. B. The current price index shall be divided by the base price index and the quotient thereof shall be multiplied by the sum of the annual rent of the prior five (5) year. 0. The resulting product shall be the annual base rental for the current five (5) years. D. At the end of the first five years and every five years thereafter of this Lease, the base rental shall be adjusts in the same manner, using the index for the month preceding the thinning of each year ofthe Lease for the current price index. In no event shall any rent determined in the above manner be reduced below an annual rent of $48,000.00. 3.04 Late Pavment Charges: Lessee acknowledge that late payment by Lessee to Government of rent and other charges providedlor under tiiis Lease will <»u^ Govemment to incur costs not contemplated by this Lease, ttiKS exact amount Of such costs include without limitation, processing and accounting cham<^ Therefore, ifany installment of rent or any other charge due from Lessee is not receivedby Govemmentwithin ten (10)days ofthe date due, Les^ shall pay to Govemment an additional ten percent (10%) ofthe initial rentas a latecharge. The parties agree that this late charge represents a lair and reasonable estimate ofthe costs thatGovemment will Incur byreasonofthe latepayment byLessee. Acceptance of any late charge shall not constitute a waiver of Lessee's default with respect to the overdue amount, nor prevent Govemment^m exercising any ofthe other rights and remedies availabte to Govemment. 3.05 Unpaid Rent. Fees andCharges: Any installment ofadditional rent, sMrjrMaylees, other charges or rrioney not received by the 10^ day after the day whdn p^^ent is due shall bear interestat the rate of ten percent (10%) per year frm the dais vtfhen thesamewasdueaccording totheterrri ofthis Leaseuntil paid byLessee. ARTICLE IV Improvements 4.01 Improvements: Asa partofthe consideration ofthisagreement, the Lesseeshall provide at its own cost and expense the following improvements (the K9*S On Patrol Servlcerinc. Parcel No. I80-I,Submarine Base, No. 6Southside Quarter, St Thomas, Virgin Islands Page 8 of 19 "Improvements") owned by Lessee at an estimated cost of $350,000.00, which is subject to the prior written consent obtained in each and every case from the Commissioner of Property and Procurement; in addition to whatever other licenses or permits deemed necessary. Erect perimeterfencing andwarehouse facility; Construct kennels, including but not limited tothe installing piping, fencing gravel and concrete blocks, although the kennels are removable; Erect ofTice structure/trailer; Install lighting throughout thepremises; and Landscaping of the premises. The Improvements shall be completed within eighteen (18) months of the effective date ofthis lease (the "Construction Period"). Lesseeshall maintain the said premises in good repair and tenantable condition and make ail repairs required of a non-structural and structural nature to make all exterior structural repairs, or repairs to heating, plumbing equipment and electrical facilities. Lessee agrees to keep the said premises and appurtenances as repaired, in a clean, sightly and healthy condition, and to return said premises to Lessor upon the expiration or other termination ofthis Lease, in a good condition as it was since the lastrepairs were made, lessreasonable wear andtearfrom intervening use. Title to Imorovements: At the conclusion of this Lease or if renewed, any renewal, title to any structure or improvement by Lessee incorporated into realty shall vest in the Lessor. Fumiture or other items of personalty, ifnot removed from the premises prior to termination shall become the property of the Lessor. Location and Imorovements: All of the above mentioned improvements to be made bythe Lessee shallbe located on Parcel No. 180-1 and a portion of 180-3 Submarine Base, No. 6 Southside Quarter, St Thomas, Virgin Islands. Repairs bv Lessee: Lessee shall at its own cost and expense, make all repairs, structural or othen/vise to the interior and exterior of said premises. Repairs, as used herein shall mean all repairs, replacements, renewals, alterations, additions, improvements and betterment. The provisions of this section shall not apply in the case of damage or destruction by fire or other insured casualty or by eminent domain, in which event the obligations of the Lessor and Lessee shall be controlled as hereinafter provided. 4.02 4.03 4.04 4.05 A. B. C. D. E. Failure of Lessee to Repair: been given a twenty-day notice In the event the Lessee, after it shall have (except in a case of emergency in which event K9*S On PatrolSen#Inc. Parcel No. 180-1,Submarine Base, No.6 Southside Quarter, St Thomas, Vir^ islands Page 9 of19 reasonable notice under the circumstances shall be sufficient), refuses and neglects to make anyrepair for which it is responsible or ifrepair is necessitated byreasonofthe Lessee's negligent acts oromission, thenthe Lessor may make such repairs. Lessor shall not be responsible for any loss, inconvenience or damage resulting to Lessee because of Lessor's repair. The costofsuch repair byLessor, togetherwith interest at the rate provided in Section 3.04shall be paid by the Lessee as additional rent. 4.06 Excavation and Sorting: Ifany excavation shall be made or contemplated to be made for building or other purposes upon property or streets adjacent to or nearby the Leased premises, Lessee either A. Shall afford the person or persons causing or authorized to cause such excavation the right to enter upon the leased premises for the purpose of doing such work as such person or persons shall consider to be necessary to preserve any of the walls or structures of the Improvements on the demised premises from injuryor damage and support the same by property foundation, or B. Shall at the expense of the person or persons causing or authorized to cause such excavation, do or cause to be done all such work as may be necessary to preserve any of the walls or structures of the improvements on the leased premises from injury or damages and to support the same by proper foundations. Lessee shall not by reason of any such excavation or work, have any claim against Lessor for damages or Indemnity or for suspension, diminution, abatement or reduction of rent under this Lease. ARTICLE V Mechanic's Lien 5.01 Mechanic's Lien: Nothing contained in this Lease shall be deemed, construed or interpreted to imply any consent or agreement on the part of Lessor to subject Lessor's interest or estate to any liability under any mechanic's lien. Should any notice of intention to file a lien under Title 28, Chapter 12 of the Virgin Island Code or any mechanics or other lien be filed against the property of the Lessor, for any work, labor, services or materials performed at or fiimished to the propertyfor or on behalf of the Lessee or anyone holding any part of the property through or under Lessee, Lessee shall cause the same to be canceled and discharged of record by payment, bond or order of a court of competent jurisdiction withinthirty (30) days after notice by Lessor to Lessee. IfLessee fails to discharge said lien ^en the Lessee shall forthwith reimburse the Lessor the total expenses incurred by the Lessor in discharging the said lien, as additional rent hereunder. K9>SOn Patrol SermInc. Parcel No. 180-1,Snbmarine Base, No.6 Sootbslde Quarter, St Thomas, Virgin Islands Page 10 of19 ARTICLE Vi Insurance and indemnity 6.01 Liabilitv Insurance: Lessee shall, during the term thereof, keep in ^11 force and effect a policy ofpublic liability and property damageinsurance In which the limits of public liability shall be no le^ then Three Hundr^ Thousand Dollars ($300,000.00) property damage. Three Hundred Thousand Dollars ($300,000.00) for one person and Five Hundred Thousand Dollars ($500,000.00) for any number of persons injured or killed in any one accident. All of said insurance shall be in a form satisfiactory to Lessor and shall provide that it shall not be subject to cancellation, termination, or change, except after thirty (30) days prior written notice to Lessor, Lessee shall fiimish Lessor, or Lessor's designee, with a certificate of insurance evidencing the coverage required hereunder on the day Lessee commences occupancy or work in or about the property herein leased. All such insurance policies shall name the Lessor as loss payee for the full- insured amount. 6.02 Indemnitv: Lessee agrees to indemnify and save Lessor harmless from and against any and all claims and demands (except such as result from the sole negligence of the Lessor, its agents, contractors, servants or employees or the failure of Lessor to complywith the terms of this Lease) for or In connection with, any accident, injury or damage whatsoever caused to any person or property arising, directly or indirectly, out of the business conducted on the property leased herein or occum'ng in, on or about the said property or any adjacent area under the exclusive control of the Lessee or arising directlyor Indirectly, from any act or omission of Lessee or subtenant or their r^pe^e servants, agents, employees, or contractors, and from and against any and all costs, expenses and liabilities incurred in connection with any such claim or proofing brought thereon. 6.03 Non-Liabilltv: Lessor shall not be responsibte or liable to Lessee for any loss or damage that may be occasioned by the acts or omissions of persons occupying any property adjacent to or adjoiningthe property or any part thereof, or for any loss or damage resultingto Lessee or its property from water, gas, steam, fire or the bursting, stoppage, or leakingof pipes, provided such loss or damage is not occasioned by the sole negligence of Lessor or its agents, contractors, or employees. 6.04 Fire and Extended Coverage bv Lessee: Lessee shall keep all buildings on the demised premises insured against loss or damage by fire with the usual extended coverage endorsements, in amounts not less than eighty(80%) of the full Insurable value thereof, above foundation walls. A copy of ail Insurance rrolicies shall name the Lessor as loss payee and be delivered to the Lessor within 20 days of the effective date of this Lease. K9*S On Patrol Se Inc. Parcel No. 180-1,Snbmarine Base, No.6 Southside Quarter, St Thomas, Virgin Islands Page 11of19 ARTICLE VII Entry By Lessor 7.01 Access to Premises: Lessor or Lessor's agents shall have the right to enter upon the Leased Premises at all reasonable tirnes to examine the san(ie and to show them to prospective purchasers, lenders orLesseds. 7.02 Easement for Pipes and Water Storage Tank Facllitv: Lessee shall permit Lessor or its designees to erect, use, maintain and repair pifiies. water storage tank facility, cables and wires, in, on or ttirough the property as and to the extent that Lessor may or hereafter deem to be necessary or appropriate. All such work shall be done, so far as practicable, in such manner as to avoid interference with Lessee's use of the Premises. ARTICLE VIII Condemnation 8.01 Notice of Condemnation: The party receiving any notice of the kind specified below which involves the Premises shall promptly give the other party notice of the receipt, contents and date of the notice received, which shall include: A. Notice of Intent Taking. B. Service of any legal process relating to condemnation of the premises for improvements. C. Notice in connection with any proceedings or negotiations with respect to such a condemnation. 8.02 Rights of Lessor and Lessees: Lessor and Lessee shall each have the right to represent its respective Interest ineach proceeding or negotiation with respect to a taking or intended taking and to make full proof of its claims. No agreement, settlement, sale or transfer to or with the condemning authority shall be made without the consent of both parties. Lessor and Lessee each agree to execute and deliverto the other any instrument that may be required bythe provisions of this Lease relating to the condemnation. 8.03 Taking of Leasehold: Upon the total taking, Lessee's obligation to pay rent and other charges hereunder shall terminate on the date of taking, or possession given, whichever is earlier, but Lessee's interest in the leasehold shall continue until the taking is completed by deed, contract or final order of condemnation. 8.04 Total Taking: Upon a total taking, ail sums including damages and interest awarded for the fee, leasehold, or both shall be distributed and disbursed as K9'S On PatrolSe41Inc. Itarcel No. 180-1, Sabnarine Base, No. 6 Southside Quarter, St Thomas, Virgio Islands Pagel2ori9 Lessor and Lessee may agree, or in the absence thereof, In accordancewth the laws ofthe Virgin Islands. ^ 8.05 Partial Takino: Upon a partial taking, all sums including damages ai^ ffiferest awarded for the fee, leasehold or both shall be distributed and disbursed to Lessor and Lessee as they may agree or, In theatamce the^isbf; In pcdudance with the laws of the Virgin Islands. Upon a partial taking Lessee shall hatve the option ofterminating this Lease upon thirty (30) days noticeto Lessor. Article IX Cancellation, Termination and Assignment and Transfers 9.01 Cancellation: This Lease shall be subject to cancellation by Lessor in the event Lessee shall: A. Be inarrears inthe payment ofthe whole or any part ofthe amountagreed upon hereunder for a period offorty-five (45) days after Lessorhas notified Lessee in writing that payment was not receiv^ when due. B. File In anycourt a petition in bankruptcy or insolvency orfor the appointment ofa receiver or trustee of allor a portionof Lease's property. 0. Make any general assignmentforthe benefitofcreditors. D. Abandon the Leased Premises. E. Defeult in performance of any of the covenants and conditions required herein (except rental payments) to be kept and performed by Lessee, and such default continues for a period of forty-five (45) days after receipt of written notice from Lessor to cure such default, unless during such forty-five (45) day period, Lessee shall commence and thereafter diligently perform such action as may be reasonably necessary to cure such defoult. if default by Lessee in the performance of its obligations hereunder Is precipitated in whole or in part, by activities for which Lessor is solely responsible, the period herein established to commence a cure for the said default will be extended for a reasonable period to account for the effect of Lessor's activities. F. Be SKijudged a bankrupt in Involuntary bankruptcy proceedings. Be made a party of any receivership proceeding in which a receiver is appointed for the property or afteirs of Lessee where such receivership is not vacated within sixty (60) days after the appointment of such receiver. In any of the aforesaid events. Lessor may take immediate possession of the Leased Premises and remove Lessee's effects, to the extent permitted by law, without being deemed guilty of trespassing. K9'S On PatrolSenfl^lnc. Parcel No. 180-1,Snbmarine Base, No.6 Southside Quarter, St Thomas, Vir^ Islands Page 13 of19 FailuiB of Lessor to declare this Lease terminatedupon the defaultof Lessee forany ofthe reasonsset outshall notoperate to barordestroy the right ofLessortocancel this Lease byreason ofany subsequent violation oftheterms ofthis Lease. 9.02 Termination: This Lease shall terminate at the end of the Lease term or renewal period. 9.03 Repossessina and Relettina: In the event of default by Lessee hereunder which shall remain uncured after the required notices have been given pursuant to this Lease and forsuch timeas provided herein, Lessor may at once thereafter, or at anytime subsequent during the existenceofsuch breachofdefault: A. Enter into and upon the Leased Premises or any part thereon and repossess the same, expelling therefrom Lessee and all personal property of Lessee (which propertymay be removedand stored at the cost of and forthe account of Lessee), to the extent permitted by law. B. Either cancel this Lease by notice or without canceling this Lease, relet the Leased Premises or any part thereof upon such terms and conditions as shall appear advisable to Lessor. If Lessor shall proceed to relet the Leased Premises during any month or part thereof, at less than the rent due and owing from Lessee during such month or part thereof under the terms of this Lease, Lessee shall pay such deficiency to Lessor upon calculation thereof, providing Lessor has exercised good ^ith in the terms and conditions of reletting. Payment of any such deficiendes shall be made monthly within ten (10) days after receipt of deficiency notice. if any suit or action is brought by Lessor against the Lessee to enforce any of the provisions hereof, the Lessor shall be entitled to collect reasonable costs and attorney's fees in the action or proceeding. 9.04 Assionment and Transfan Lessee shall not assign or transfer this Lease or any interest therein, without the prior written consent of Lessor which shall not be unreasonably \^held. Any consent of any assignment shall not be deemed consent to any subsequent assignment. 9.05 Subleasing: Lessee may not sublet the Demist Premises in whole or in part without Lessor's advance written consent. Lessor's consent does not release Lessee from any of its obligations under this Lease. In the event that Lessor consents to subteasing of the Demised Premises or any part thereof, the Lessee pay to the Lessor an additional amount equal to thirty-five percent (35%) monthly of such subleasing income as additional rent. This additional rent shall be due and payable on the next rent day after such subletting rent becomes due from the subtenant. Jt^t K9*S On Patrol Serviorinc. Pircel No. 180-1,Sabmarine Base, No. 6Sonttiside Quarter, StThomas,Vtr^ Islands Fngel4ofl9 ARTICLE X General Terms and Conditions: 10.01 Notices: All notices provided to be given under this Lease shall be given by certified or registered mall, retum receipt request, posts^ fully prepaid, addressed to the proper party at: LESSOR: Department ofProperty &Procurement Building No. 1 Subbase Charlotte Amalie St Thomas, Virgin Islands 00802 LESSEE: K9's On Patrol Service, Inc. P.O. Box 8721 St. Thomas, Virgin Islands 00801 The address ofeither party may be changed from time to time by giving written notice to thateffect 10.02 Non-discrimination: Lessee in exercising anyofthe rights or privileges granted by this Lease, shall not, on the grounds of race, color, creed, sex or national origin dfecriminate or permitdisbrimination against any person. 10.03 Officials not to Benefit: No member of the U.S. Congress or the Territorial Legislature, no official or officer of the United States or the Virgin Islands Govemmerit or any oftteir instrumentality's shall tie admitted to any share of this Lease or any tienefit ofvaluethat mayarise therefrom. 10.04 Aoreement made in the Viroin Islands: The laws of the U.S. Virgin Islands shall govem the validity, performance, andenforcement ofthis Lease. 10.05 Counteroarts: This document is execute in four counterparts, each of which shall be deemed an original. 10.(» Cumulative Rights and Remedies: All rights and remedies of Lessor here enumerated shall be cumulative and none shall exclude any other right or remedy allowed by law. Likewise, the exercise by Lessor of any remedy provided for herein or allowed by law shall not t>e to ^e exclusion of any other remedy. 10.07 Interoretation: Words of gender used in this Lease shall be held to Include the plural and vice versa unless the context othenMse requires. 10.08 Agreement made In Writing: This Lease contains all of the agreements and conditions made between the parties hereto and may not be modified orally or in any manner other than by agreement in writing signed by the parties hereto or their respective successors in interest K9*S On PatrolSer^fInc. Parcel No. 180-1, Submarine Base, No. 6 Southside Quarter, StThomas,Vlr^ Islands Page 15of19 10.09 Paragraph Headings: The table of contents of this Lease and the captions of tf^ various articles and paragraph of this Lease are for convenience and ease of tti» scope, content or intent of this Lease or any part of parts of this Lease. 10.10 invaiiditv or lliegaiitv of Provisions: The invalidity or illegality of any provisions shall not effiect the remainder of this Lease. 10.11 Successors and Assigns: All of the terms, provisions, covenants and conditions ofthis Lease shall inureto the benefitof and be binding upon Lessor and Lessee and their successor, assigns, legal representative, heirs, executors and administrators. 10.12 Broker Lessee covenants, warrants and represents that there was no broker instrumental in consummating this Lease, and that no conversations or prior negotiations were had with any broker concerning the rentir^ of the Premises. Lessee agrees to hold Lessor harmless against any claims for brokerage commission arising out of any conversation or negotiation had by Lessee with any broker. 10.13 Approvals Reouired: This Lease shall not become effiective unless approved by the Governorand the Legislature ofthe Virgin Islands. ARTICLE XI Conflict Of interest 11.01 Conflict of Interest: Lessee covenants that it has no interest and will not acquire anyinterest, direct or indirect, which would conflict inany manner ordegreewith the perfonnance of its obligations under this Lease. Lessee further covenants that it is: a. Not a territorial officer or employee (i.e. the Governor, Lieutenant Governor, member ofthe Legislature or any other electedterritorial official; or any officer or employee of the legislative, executive or judicial branch of the Government or any agency, board, commission or independent instrumentality of the Government, whether compensated ona salary, fiee orcontractual basis); or b. Aterritorial offioer or employee and, as such, has: i. Tofomiliarize itself with the provisions ofTitle 3 Chapter 37, Virgin Islands Code, pertaining to conflicts of interest, including the penalties provisions set forth in Section 11.08 thereof; K9*S On Patrol Se Inc. Parcel No. 180-1,Submarine Base,No.6 SonthsideQuarter, St Thomas,Vir^ Islands Page 16 of 19 ii. Not made, negotiated or influenced this contract, in its ofTiciai capacity; iii. No finandal interest in the contract as that term is defined in Section 11.01 of said Code Chapter. 11.02 Rights of Holder of the Leasehold Mortgage: Not withstanding anything to the contrary herein contained, Lessor agrees that in the event that Lessee secures a leasehold mortgage and thereafter defaults in the performance, of any of the terms and conditions of this Lease agreement, Lessor will give notice of such default to any holder of the leasehold mortgage (where Lessor has t>een notified of the Identify of the leasehold) and a like notice of the default to the Lessee. The Lessee or the holder of the leasehold mortgage shall have the right to remedy any such default within a period of forty-five (45) days from the date that the notice is mailed by registered or certified mail, retum receipt requested, to the holder of the leasehold mortgage and the Lessee. In every case where the holder of the leasehold mortgage elects to acquire possession of the premises or to foreclose the leasehold mortgage, such holder shall, pnor to the acquiring of possession or the foreclosing of the leasehold mortgage, (i) give Lessor the right of first refusai to purchase and assume Lessee's leasehold mortgage intere£st and obligation, or (ii) to provide a purchaser for Lessee's leasehold mortgage interest and obligation, The Lessor shall exercise the rights herein set out within one hundred twenty (120) days from the date that the Lessor is notified by the holder of the leasehold mortgage that these rights may be exercised. In the event that this Lease agreement is terminated, Lessor may enter into a new Lease of the premises with the holder of the leasehold mortgage, or its designee, within thirty (30) days after receipt of such request, which new Lease shall be effactive as of the date of such termination of this Lease and shall run for the remainder of the same terms, covenants, conditions and agreements; provided that the holder of the leasehold mortgage, or its designee (I) contemporaneously with the delivery of such request, pay to Lessor ail the installments of basic rent and all other items of additional rent which would have been due from Lessee had the Lease not been terminated and (ii) allsums due from the date of termination to the date ofthe execution of the new Lease. 11.03 Compliance with Laws: The Lessee shall comply with all laws and regulation of the U.S. Govemment and the Govemment of the Virgin Islands including but not limited to: zoning. Coastal Zone Management (CZM), building codes, environmentaland American Disabilities Act(ADA). The Lessee shall obtain all licenses and permits required to use the property and to do business in the Virgin Islands as are required. 11.04 Waiver The Waiverby Lessor of any breach of any term condition or covenant of this Lease shall not be deemed to be a waiver of any subsequent breach of the K9*SOn PatrolSer4B|Inc. Parcel No.180-1,Snbmarine Base,No.6 SouthsideQuarter, St Tbomas,Viii^Islands B^17ofl9 same or any otherterm, oondJtlon or covenant of this Lease. No delay oromisston to exercise any right or power hereunder shall impair any right or power, everyilgtit and remedy conferred under this Lease may be exeic^ed from time to t&ne aid as often as may bedeemed expedtent by theholderofsuc^r^htorr^i^dy. 11.05 Enforcement of Lease Terms: The waiver by either party of any breach of any term, condition orcovenant of this Lease, during the term of Lease, shall not t)e deemed to be a waiver ofany subsequent breach ofthesame orany other tenm, condition or covenant ofthis Lease. No delay or omission to exercise any right or power nor shall be construed to be a waiver of any such right or power and every r^ht and r^nedy conferred under thfe Lease may beexercised from tin^ and as often as may bedeemed expedient bythe holderofsuch r^htorremedy. IC9*S On Patrol Serviiirinc. ^ Parcel No.180-1,Submarine Base,No.6 SouthsideQuarter, %ThomasiViri^Islands ^18^9 IN WITNESS WHEREOF, the parties herein have hereunto set their handsand seals of the day and year first above written. BY: •S. Paris Nicholson IV President ATTEST: Seciretary ACKNOWLEDGMENT Territory of the Virgin Islands ) Districtof St Thomas &St. John) ss: Before me per^najly appeared J'j/ ^president of 6a/' . to me well known to be the individual described inand whoexecutecfthe foregoing instrument WITNESS my hand on this 2005. ztL day of Notary Publi SHyRAM.RAYmNO MYCmMISStON EXRRES^1/1S/Q9 NP-144-04 •••". --r: " . K9*S0d PatrolSer4PfInc. ParcelNo.180-1, SnboiarineBase, Na 6 Soothside Qnarter, % Thomas,VirginIslands |tegel9of]9 GOVERNMENT OF THE VIRGIN ISLANDS BY: i^r Comml^gneT'^^SIslty^nd Procureme^gJ^^^F^ Date: Approved as to Legal Sufficiency BY: Attorney General Approved: Honorable Charles W. Tumbull Governorofthe Virgin Islands Approv t of the Virgin Lratelatu WITNESSES Date: /h/er-Sr- . fA' Date: Date: ^ ASSIGNMENT OF LEASE BY LESSOR WITH CONSENT OF LESSOR (December 21, 2018) ASSIGNMENT OF LEASE BY LESSOR WITH CONSENT OF LESSOR This Assignment made this day of December 2018, by and between K9's on Patrol Service, Inc. ("Assignor") whose mailing address isP.O. Box 9216 Sub Base, St. Thomas, Virgin Islands 00801, toParadisePaws VI, LLC ("Assignee") whose mailing address isP.O. Box 9216 St Thomas,VirginIslands00801. Forvalue received, Assignor assigns and transfers toAssignee that lease, ratified March 9, 2006, bytheVirgin Islands legislature, between Assignor asLessee and GOVERNMENT OF THE VIRGIN ISLANDS, acting by and through its Commissioner of Property and Procurement, as Lessor, thefollowing described premises. Parcel No. 180-1 Submarine Base, No. 6 Southside Quarter, St. Thomas, Virgin Islands consisting of49,317.7 U.S. square feet ofland more/less, together with all rights, title and interest inand tothe lease and premises, subject toall conditions and terms contained inthe lease, tohave and to hold from December 7^, 2018, until the present term and the lawfully exercised renewal option terms ofthe lease. Acopy ofthe lease isattached hereto and made part hereofby reference. Assignor covenants that it isthe lawful and sole owner ofthe interest assigned hereunder for Parcel No. 180-1 Submarine Base, that this interest is free from all encumbrances, and that it has performed all duties and obligations and made all payments required under the terms and conditions ofthe lease. Assignor and Assignee acknowledge, Assignor surrendered its leasehold interest in a portion ofParcel No. 180-3 Submarine Base No. 6 Southside Quarter, St. Thomas Virgin Islands consistingof62,808.1 U.S. sq. ft toLessorand which surrenderwas accepted byLessoronOctober 8,2013, and that no interest inParcel No. 180-3 isbeing assigned under this Assignment. Assignee agrees to payall outstanding rent balances as of December 1^, 2018 under the lease totaling Twenty-Nine Thousand Eight Hundred Fifty-Seven and 45/100 Dollars ($29,857.45) and Sublease totaling Eight Thousand Two Hundred Ninety-Five and 00/100 Dollars ($8,295.00) and to pay this outstanding amount Thirty-Eight Thousand One Hundred Fifly-Two and 45/100 Dollars ($38,152.45) inaccordance with the terms ofthe Agreement toPay, attached hereto and made a part of this Assignment If Assignee fails to satisfy the provisions of this Paragraph, Assignor willberesponsible forthepayment of alloutstanding rental sums. Assignee agrees to pay allrents due, owing, and continuing after theeffective date ofthis assignment, andtoassume and perform all duties and obligations required bythe terms ofthe lease. Assignor: Date: Paris O. Nicholson, IV President, K9's on Patrol Service, Inc. Assignee: Date: Paris O. Nicholson, IV President, Paradise Paws VI, LLC Page 11 ACKNOWLEDGElvnr.NT Territory ofthe Virgin Islands ) District ofSt. Thomas, and St. John ) ss: Before me personally appeared Paris 0. Nicholson, IV, well known, and known tobe the individua](s) described in and who executed the foregoing instrument. WITNESS my hand onthis day A.D. 201i8. NOTAI41£ji™^,lic Name:PieriharieShneof y— My Commission Exp:__ / -^ NPCommission #: f-7 StThqmas/St. John,USVI District CONSENT OF LESSOR The Government ofthe Virgin Islands, acting by and through its Commissioner ofProperty and Procurement, Lloyd T. Bough, Jr., Lessor named in the above assignment ofthat lease executed on March 09, 2006, consent to that assignment. I also consent to the agreement and accept Paradise PawsVI, LLCas Assignee. Dated:i^. ,2018 Page 12 Government of the Virgin Islands, acting by and through its Commissioner of Property and Procurement, LloydT. Bough,Jr.