Term
This Lease shall begin on August 1, 2003 and terminate on July 31, 2026.
Commencing August 1, 2021, the Rent due from Lessee payable to Authority shall be Two Thousand, Two Hundred Sixty-Four Dollars ($2,264) per month, plus applicable State of Florida sales tax, which Rent amount shall be subject to Rental Adjustment as described in Article 5.6, as amended.
In addition to the Rent due as set forth in Article 5.1, as amended, Commencing August 1, 2019, and continuing uninterrupted thereafter throughout the Term of the Lease, as amended, Lessee agrees to pay Authority six point five percent (6.5%) of Lessee's Annual Gross Revenues in excess of four hundred fifty thousand dollars ($450,000) received from all commercial activities on the Premises, including but not limited to golf driving range, par 3 golf course, executive golf course, retail sales, equipment rentals, batting cages, restaurants and concessions. Gross Revenues shall be defined as all monies received by Lessee resulting from all commercial activities occurring on the Premise, less sales tax paid by Lessee for said activities. Lessee shall pay to Authority the Percentage Rental required hereunder on an annual basis, which Percentage Rental shall be due and payable on or before thirty (30) days after the end of each Lease Year, which Lease Year begins August 1.
On August 1, 2024, and on August 1 each third Lease Year thereafter, the Rent shall be adjusted to reflect cost-of-living increase based on the Consumer Price Index. At the time the calculation is being made the monthly Index figure for the immediately preceding month of May ("Adjustment Level") shall be used. The monthly Index figure for May 2021 shall be referred to as the "Base Level." Accordingly, on August 1, 2024, the level for May 2021 shall be compared to the level for May 2024. The new rent shall be computed by multiplying the annual base rent in effect August 1, 2021 ("Base Year Rent") by a fraction, the numerator of which shall be the Adjustment Level, and the denominator of which shall be the Base Level. Stated as a mathematical formula, the Adjustment Rent shall be computed as follows:
Adjusted Rent = Adjustment Level X Base Year; Base Level
In no event shall the Rent amount in effect be decreased because of such adjustment. The Rent amount following the adjustment shall remain in effect until the next adjustment. The cost-of-living Index referred to herein shall be the Consumer Price Index (CPI) of all