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CM-2018-1953 - 12/5/2018= DIGITAL SIGNAGE LEASE AGREEMENT This Agreement is made on 1 , by and between City of Round Rock, Texas (hereinafter called "LESSOR") and Optica Ventures, LLC (d/b/a ESPOT.io) (hereinafter called "LESSEE"). 1. PREMISES. LESSOR does hereby lease and demise to LESSEE space for advertising purposes in a portion of the real property located at 2400 Chisholm Trait, Round Rock, TX 78681 in location(s) mutually agreeable to the parties in the section (s) ("Sections") of the property at such location and with digital screens located in Section listed in this agreement (such designated area hereinafter being called the "Premises"). (5) screens in mutually agreeable locations 2. TERM. The term of this Lease shall be ONE (1) year(s) beginning on and ending on 12/1/2019 12/1/2018 subject to the conditions of Paragraph 9 hereof. 3. RENTAL. The total rental payable during the term shall be U.S. Dollars ( #3,000.00 Payments shall be made in twelve (12) equal monthly installments of $250 per month due on the fifteenth (15th) day of each month. (a) First lease payment to be made on 1/15/2019 (b) Final lease payment be made on 12/15/2019 4. RENEWAL OPTION. LESSEE shall have the right to renew this Lease for an additional one (1) year term upon the same terms and conditions contained herein except for rental which shall be negotiated and agreed upon no less than thirty (30) days prior to the expiration of the original term. Failure of the parties to agree on a mutually acceptable rental shall result in the renewal option automatically terminating. 5. USE. The Property is leased for the sole purpose of construction, operations and maintenance of indoor advertising display(s). LESSEE is herewith, subject to the conditions contained herein, the sole and exclusive right to display digital advertising copy on the Premises unless otherwise specified in this lease agreement. The LESSEE shall have the right to erect, place and maintain advertising digital sign structures and equipment therefor on the demised premises to post, paint, illuminate and maintain advertisements on such structures. All structures, equipment and materials placed upon the said Premises by the LESSEE shall always remain the property of, and may be removed by the LESSEE at any time prior to or within a reasonable time after the expiration of the term hereof or any extension hereof, provided LESSEE shall first give LESSOR no less than one business day prior notice of LESSEE's intention to service, maintain, erect, replace or remove any sign structure, equipment or other property placed upon the Premises by LESSEE. 6. CONSTRUCTION & INSTALLATION. Construction of the indoor digital advertising structures shall be comprised exclusively of a one or more digital displays including a wall mount or shelf. LESSOR gives LESEE permission to mount or place the digital signage in the LESSORS's facility_ All construction shall be performed by LESSEE or LESSEE's agents, act LESSEE's sole cost and expense, in strict conformity with all applicable federal, state and local laws, rules and regulations. LESSOR agrees to provide wireless Internet access and suitable power to plugin and power the digital signage, 7. RELOCATION OF DIGITAL SIGNAGE. In the event the Premises on which an indoor advertising structure is located is sold, leased, improved or developed so as to necessitate the relocation of the outdoor advertising structure, LESSOR agrees, at LESSOR's sole expense, to relocate said indoor advertising structure to a reasonable location of like value and exposure. � + Ce) I Optica Ventures, LLC I www.espat.lo 110 Shipyard Drive, 2A, Hingham, MA 02340 8. SUBLEASING. LESSEE shall have the right to sublease the Premises under the terms and conditions contained herein. In the event of such subleasing, LESSEE shall remain fully liable for all obligations under this Lease Agreement, such subleasing having no effect on LESSEE's obligations hereunder. 9. TERMINATION. LESSEE shall have the right to cancel this Lease upon fifteen (15) days prior written notice to LESSOR if any of the following occur: (a) LESSEE's signs or structures on the Premises are or become entirely or substantially obscured or destroyed through no fault of LESSEE and LESSEE chooses not to repair said signs, LESSEE to make such determination within fifteen (b) days after the event causing the destruction or obscuration; failure to make such determination shall be deemed a waiver by LESSEE of such right to cancel; (c) The Premises are or become unsafe for maintenance of LESSEE's signs or structures, through no fault, act or omission of LESSEE; (d) A permanent diversion of change of traffic occurs along the street or streets adjacent to, or leading past the Premises; (e) LESSEE is prevented by an present or future law, regulation or ordinance from constructing or maintaining such signs on the Premises. (f) LESSEE has determined, at its sole discretion that it is no longer financially viable to operate in the LEESOR's facility. 10. LESSOR'S COVENANTS. LESSOR covenants to LESSEE that: (a) It has the authority to make this Lease; (b) It will not permit any other Digital Signage to be erected on the Premises; S ] + (a) I Optica Ventures, LLC I wwmespot.io 118 Shipyard Drive, 2A, Hingham, MA 02340 (c) It will not permit any shrubs, trees, vines, buildings, or other signs or Digital Signage to be planted or erected on the Premises which would obstruct or materially impair the visibility of LESSEE's structure(s). 11. LESSEE'S COVENANTS. LESSEE covenants to LESSOR that it will: (a) Promptly pay rental as due pursuant to this Lease and abide by all of its terms and conditions; (b) Keep all signs, structures, Digital Signage, equipment and related property placed on the Premises by LESSEE in good repair; (c) Not place in or on nor bring in or on to the Premises, any hazardous substance as such term is defined under state or federal law (whichever definition being more expansive). 12. LESSOR'S ADVERTISER SALES COMMISSION. In the event that LESSOR refers an Advertiser to LESSEE and the Advertiser becomes an active and paid Advertiser LESSEE shall pay LEESOR a commission of 50% of the gross sale of the Advertiser. On all other advertising that LESSEE prospects and sells to the LESSOR's facility, the LESSEE shall pay LESSOR a commission of 5%. In Payment shall be made on the 15th of the following month. 13. MISCELLANEOUS. This Agreement shall be binding on the respective successors, and to the extent assignable on the assigns or nominees of the parties hereto. Any notice required or permitted to be delivered hereunder shall be deemed received when sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to LESSOR or LESSEE, as the case may be, at the addresses set forth at the beginning of this Agreement or, in the alternative, via hand delivery or any recognized overnight delivery service. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. This Agreement constitutes the complete, final and exclusive agreement S r 00 r Optica Ventures, LLG I www.espot.io 118 Shipyard Drive, 2A, Hingham, MA 02340 of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties in connection with this subject matter. The Agreement and the terms and conditions herein may not be modified except by a writing and signed by all parties hereto. LESSOR may freely assign, hypothecate, transfer and convey any or all of its rights, privileges, duties and obligations hereunder. LESSEE shall not assign any of its rights, privileges, duties or obligations hereunder however, LESSEE may sublease the Premises provided it is in strict conformity with Paragraph 9 above. This Agreement may be executed in counterparts with each copy having the full force and effect as if one agreement were executed. This Agreement may be executed via facsimile with the same force and effect as if one agreement were executed concurrently by all parties in person. LESSEE: By: Brian Fitzgibbons i COO, Optica Ventures LLC (d/b/a @SPOT TV) DATE: 11/6/18 ,, r `0 Optica Ventures, LLC I www.espot.io 118 Shipyard Drive, 2A, Hingham, MA 02340 City of Round Rock R(T RACK TEXAS Agenda Item Summary Agenda Number: Title: Consider executing a Digital Signage Lease Agreement with Optica Ventures, LLC for the leasing of space at the Round Rock Sports Center for advertising purposes. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 11/30/2018 Dept Director: Chad McKenzie Cost: Indexes: Attachments: Updated LAF - ESPOT Agreement for RRSC (00412979xA08F8), Update ESPOT Agreement for RRSC (00412980xA08F8) Department: Sports Management and Tourism Text of Legislative File CM -2098-1953 The digital signage will be on the screens in mutually agreeable locations in the Sports Center. The term for this lease agreement will begin on 1211118 and end on 1211119 with monthly rental installments of $250 to total $3,000 for the year. There is no cost to us and we will receive commission on ad sales. Source of Funds: HOT Funds CFfy of Hound Rock Page 1 Printed on 11/292018