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 DESTINATION ACTIVITY CATALYST PROGRAM GRANT AGREEMENT

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file time: 2008-02-16

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MINORITY AND WOMEN BUSINESS INITIATIVE PROGRAM

FUNDING AGREEMENT The Leak Doctor, Incorporated  

      THIS MINORITY AND WOMEN BUSINESS INITIATIVE PROGRAM FUNDING AGREEMENT (hereinafter referred to as the 00greement00 is made and entered into by and between the Community Redevelopment Agency of the City of Orlando, a public body corporate and politic of the State of Florida created pursuant to Part III, Chapter 163, Florida Statutes (hereinafter referred to as the 00RA00, the principal address of which is Orlando City Hall, 6th Floor, 400 S. Orange Ave., Orlando, Florida 32801, and The Leak Doctor Incorporated, a Florida for-profit corporation (hereinafter referred to as 00he Leak Doctor00, the principal address of which is 421 West Robinson Street, Orlando, Florida 32801  (hereinafter singularly referred to by their respective designation contained hereinabove, or as the 00arty00 and collectively as the 00arties00. 

      WHEREAS, the CRA was created as a public body corporate and politic of the State of Florida, for the purposes of the community redevelopment objectives of Part III, Chapter 163, Florida Statutes; and 

      WHEREAS, in an effort to accomplish the objectives of Part III, Chapter 163, Florida Statutes, and further implement the Downtown Orlando Community Redevelopment Plan adopted pursuant thereto, the CRA has adopted and established the Minority and Women Business Initiative Program (hereinafter referred to as the 00rogram00, which provides CRA financial assistance towards certain specified start-up, retention, or relocation costs and expenses for eligible enterprises within the Program00 Target Area (00arget Area00 within Downtown Orlando; and 

      WHEREAS, the CRA has found and declared that the Program serves an important and significant public purpose and is necessary and proper in order to promote the health, safety, and welfare of the public by furthering the eradication of slum and blight by providing vibrant retail within the Program00 Target Area; and 

      WHEREAS, the retention and expansion of The Leak Doctor00 business will further the CRA objective of retaining existing neighborhood businesses within the Program00 Target Area; and  

      WHEREAS, The Leak Doctor is eligible for CRA financial assistance pursuant to the Program because it is an existing for-profit small plumbing consulting business that is located in a facility owned by its affiliate, 421 West Robinson Street, Inc., which is located within the Program00 Target Area; and  

      WHEREAS, The Leak Doctor is seeking assistance under the Program in the form of reimbursement for capital equipment and marketing expenses; and 

      WHEREAS, in order to offset such expenses of the business, the CRA, upon recommendation by the MEBA Advisory Board and CRA Advisory Board, awarded funding in the amount of up to Thirty Thousand Dollars and no cents ($30,000.00) to be given pursuant to and contingent upon the terms of this Agreement; and 

    NOW, THEREFORE, in consideration of the promises and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the CRA and The Leak Doctor agree as follows: 

       Incorporation of Recitals.  The recitals set forth hereinabove are true and correct and are incorporated herein as if fully set out below.  
       Funding.  The CRA shall provide funding pursuant to this section only within the first twelve (12) months of the Effective Date of this Agreement.  Therefore, in order to ensure payment by the CRA within such twelve month period, requests for reimbursement (and supporting documentation) shall be submitted by The Leak Doctor within the first eleven (11) months following the Effective Date. Subject to The Leak Doctor complying with the conditions contained in section 3 hereunder, the CRA shall provide funding up to the amount of Thirty Thousand Dollars and no cents ($30,000.00) in accordance with the following payment schedule:  

a. Upon providing invoices, receipts, and other appropriate documentation of the expenditures made by The Leak Doctor, deemed acceptable by the Executive Director of the CRA, the CRA shall pay to The Leak Doctor up to Thirty Thousand Dollars and no cents ($30,000.00) as reimbursement for purchases made in the following categories associated with the retention and expansion of the business in the Target Area.  The amounts which the CRA will reimburse for a particular item(s) within a category will be the actual amount of The Leak Doctor00 expenditure for such item(s) as reflected in the documentation provided to the CRA by The Leak Doctor as required by this section.  However, the amount reimbursed will not exceed the amount allocated below. 

Marketing (design, print, and mail sales brochures)00.$10,000.00 Capital Equipment (two panametric units and a ground penetrating radar unit000000000000000000000000000$20,000.00  

b.  If all items for above categories have been purchased and the amount the CRA has reimbursed The Leak Doctor is less than $30,000.00, The Leak Doctor may use the remaining funds for other item(s) not included in the proposal submitted, but that are associated with the retention and expansion of the business, upon approval by the Executive Director of the CRA, provided that the total amount reimbursed The Leak Doctor during the term of this Agreement does not exceed $30,000.00. 

c.  Funds allocated to a specific category listed above cannot be shifted in whole or in part to another category without approval from the Executive Director of the CRA or his/her designee. 

       Conditions to Funding.  The CRA shall not be obligated to provide the Funding enumerated in Section 2 hereof to The Leak Doctor unless The Leak Doctor meets the following conditions at all times during the term of this Agreement:  
The Leak Doctor shall continue to operate as 00he Leak Doctor00at the facility located at 421 West Robinson Street, Orlando, Florida, or at another facility located within the Target Area.  
The Leak Doctor shall, at a minimum, be open for business at least five (5) days a week and at least eight (8) hours per day for a minimum of forty (40) hours each workweek.  
The Leak Doctor shall include the official Downtown Orlando logo on all of The Leak Doctor00 electronic and print advertising and promotional materials, and shall display the Downtown Orlando logo and the Minority and Women Entrepreneur Business Assistance logo, as provided by the City, on the front main entrance door of the business.  
The Leak Doctor shall install dynamic and highly visible identification signage. All signage must comply with the sign regulations of the City of Orlando and are subject to the approval of the City of Orlando Downtown Development Board Design Review Committee (hereinafter referred to as the 00RC00.  
The Leak Doctor shall become a member and shall maintain active membership in the Greater West Side Downtown Merchants Association throughout the term of this Agreement.  
The Leak Doctor shall maintain active, transparent, and clear storefront windows.  
The Leak Doctor shall seek technical assistance from an economic development organization or company, approved by the CRA Executive Director, or his or her designee, in certain areas including, but not limited to, accounting and bookkeeping training, and to obtain assistance in developing a marketing plan for the business.  The Leak Doctor shall submit such marketing plan to the CRA within three (3) months of the Effective Date of this Agreement.  The Leak Doctor shall continue to seek technical assistance from such economic development organization or company on an as needed basis to address business strategy and marketing.  
Beginning within the first three (3) months of opening, The Leak Doctor shall contribute to the community through participation in an event within the downtown area of the City of Orlando, such as the Sunday Eola Market, at least once per quarter throughout the term of this Agreement.  
       Community Involvement.  During the term of this Agreement, the CRA encourages The Leak Doctor, to the extent possible, to sponsor downtown/local events and to exhibit the works of local artists in the business.  
       Progress and Financial Reporting.  During the term of this Agreement, The Leak Doctor shall submit quarterly reports to the CRA00 Executive Director or Staff Member for the Minority/Women Entrepreneur Business Assistance Program.  Such reports shall demonstrate The Leak Doctor00 compliance with the Conditions to Funding enumerated in Section 3 herein and shall be in a form that is acceptable to the CRA00 Executive Director.  Such reports shall also include the number of clients served and profit and loss statements.  The Leak Doctor shall also make representatives available to present updates to the MEBA Advisory Board, CRA Advisory Board or CRA Board on a quarterly basis and as otherwise requested by CRA staff.  
       Covenants, Representations, and Acknowledgements of The Leak Doctor.  The Leak Doctor hereby covenants, represents, and acknowledges the following:  
The Leak Doctor has or will obtain all federal, state, and local permits or other government authorizations and approvals required by law in order to operate the business at 421 W. Robinson Street, Orlando, Florida, or at any another future facility located within the Target Area.  
The Leak Doctor shall at all times be in compliance with the Orlando City Code, including, but not limited to, code sections pertaining specifically to planning, zoning and permitting, and The Leak Doctor shall maintain a current and valid City of Orlando occupational license (also referred to as 00usiness tax receipt00 or licenses at all times.  This part is not intended to preclude the City of Orlando from granting The Leak Doctor certain waivers, exemptions, or variances as allowed under the Orlando City Code.   
The Leak Doctor shall make timely payment of any and all taxes owed by The Leak Doctor.  
The Leak Doctor has not and will not apply for funding through The City of Orlando Business Assistance Program or The Arts and Culture Assistance Program.  
       Books and Records.  The Leak Doctor shall compile and maintain accurate books and records indicating its compliance with the requirements of this Agreement, and shall make such records available at a mutually agreed upon time for inspection and/or audit by the CRA during regular business hours.   

      8.  Default.  The following events or conditions shall constitute a default and breach of this Agreement by The Leak Doctor, and shall entitle the CRA to immediately cease any payments contemplated herein to The Leak Doctor, to seek reimbursement of any funds already paid by the CRA to The Leak Doctor, and to terminate this Agreement upon ten (10) days written notice to The Leak Doctor: 

The Leak Doctor00 failure to comply with any of the Conditions to Funding contained herein at section 3.  
The Leak Doctor00 failure to maintain and operate the business, except for normal U.S. holidays, as required in Section 3(b) herein at anytime during the term of this Agreement.  (A temporary closure may only be permitted with prior written approval of the CRA.)  
The Leak Doctor00 abandonment or closing of the business without prior notice to the CRA.  
Foreclosure proceedings are filed against 421 West Robinson Street, Inc.  
The Leak Doctor00 sale of the business or change of the current business that would not independently qualify for the Program.  
The Leak Doctor00 prepayment of any portion of any business loan for The Leak Doctor or withdrawal from any business accounts when the working capital of the business is not in excess of twenty thousand dollars ($20,000.00) as such figure is verified by the CRA00 Executive Director.  

Failure of the CRA to declare a default shall not constitute a waiver of any rights by the CRA.  Furthermore, the waiver of any default by the CRA shall in no event be construed as a waiver of rights with respect to any other default, past or present. 

     9. Indemnification.  To the extent permitted by law, The Leak Doctor shall indemnify, defend and hold harmless the CRA, its agents, employees, and elected and appointed officials, including the Advisory Boards to the CRA and their members, from and against all claims, damages, losses, and expenses (including all attorneys00costs and fees reasonably and actually incurred, and all attorneys00costs and fees on appeal) arising out of or resulting from The Leak Doctor00 performance under this Agreement, and which are caused in whole or in part by The Leak Doctor, its agents, employees or subcontractors, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable. 

     10.   Bankruptcy.  In the event (a) an order or decree is entered appointing a receiver of The Leak Doctor or its assets, which is not appealed (or if appealed is determined adverse to The Leak Doctor) or (b) a petition is filed by The Leak Doctor for relief under federal bankruptcy laws or any other similar law or statute of the United States, which action is not dismissed, vacated or discharged within sixty (60) days after the filing thereof, then the CRA shall have the right to terminate immediately this Agreement. 

     11.   Force Majeure.  The parties shall use reasonable diligence to ultimately accomplish the purpose of this Agreement but shall not be liable to each other, or their successors or assigns, for breach of contract, including damages, costs, and attorney00 fees (including costs or attorney00 fees on appeal) as a result of such breach, or otherwise for failure to timely perform its obligations under this Agreement occasioned by any cause beyond the reasonable control and without the fault of the parties.  Such causes may include but shall not limited to acts of God, acts of terrorism or of the public enemy, acts of other governments (including regulatory entities or courts) in their sovereign or contractual capacity, fires, hurricanes, tornadoes, floods, epidemics, quarantines, restrictions, strikes, substantial shortages of building materials within the Orlando Metropolitan Area, or failure or breakdown of transmission or other facilities (00orce Majeure00.  Notwithstanding anything herein to the contrary, if The Leak Doctor or the CRA is delayed, hindered or prevented in or from performing its respective obligations under this Agreement by any occurrence or event of Force Majeure, then the period for such performance shall be extended for the period of such performance is delayed, hindered or prevented, and the party delayed, hindered or prevented in or from performing shall not be deemed in breach hereunder. 

     12. Agency.  The Leak Doctor and CRA, and their agents, contractors, and subcontractors, shall perform all activities that are contained herein as independent entities and not as agents of each other. 

     13. Third-party Beneficiaries.  This Agreement is solely for the benefit of the parties signing hereto and their successors and assigns, and no right, nor any cause of action, shall accrue to or for the benefit of any third party. 

      14.   Binding Nature of Agreement.  This Agreement shall be binding, and shall inure to the benefit of the successors or assigns of the parties hereto, and shall be binding upon and inure to the benefit of any person, firm, or corporation that may become the successor in interest, directly or indirectly, to the Business, or any portion thereof. 

     15. Controlling law and venue.  This Agreement and the provisions contained herein shall be construed, controlled, and interpreted according to the laws of the State of Florida, and all duly adopted ordinances, regulations, and policies of the City of Orlando now in effect and those hereinafter adopted.  Unless otherwise specified in this Agreement for a particular issue, all City ordinances, rules, regulations and policies are applicable.  The location for settlement of any and all claims, controversies, or disputes, arising out of or relating to any part of this Agreement, or any breach hereof, shall be Orange County, Florida. 

     16. No Liability or Monetary Remedy.  The Leak Doctor hereby acknowledges and agrees that it is sophisticated and prudent in business transactions and proceeds at its own risk under advice of its own counsel and advisors and without reliance on the CRA, and that the CRA bears no liability for direct, indirect or consequential damages arising in any way out of this Agreement.  The only remedy available to The Leak Doctor for any breach by the CRA is one of mandamus to require the CRA00 specific performance under the terms and conditions of this Agreement. 

     17.    Relationship.  This Agreement does not evidence the creation of, nor shall it be construed as creating, a partnership or joint venture between The Leak Doctor and the CRA.  The Leak Doctor cannot create any obligation or responsibility on behalf of the CRA or bind the CRA in any manner.  Each party is acting for its own account, and it has made its own independent decisions to enter into this Agreement and as to whether the same is appropriate or proper for it based upon its own judgment and upon advice from such advisors as it has deemed necessary.  Each party acknowledges that it is not acting as a fiduciary for or any advisor to the other in respect to this Agreement or any responsibility or obligation contemplated herein.  The Leak Doctor further represents and acknowledges that no one was paid a fee, commission, gift, or other consideration by The Leak Doctor as an inducement to entering into this Agreement. 

     18. Personal Liability.  No provision of this Agreement is intended, nor shall any be construed, as a covenant of any official (either elected or appointed), director, employee or agent of the CRA in an individual capacity and neither shall any such individuals be subject to personal liability by reason of any covenant or obligation of the CRA contained herein. 

     19. Entire Agreement.  This Agreement constitutes the entire agreement between the parties with respect to the specific matters contained herein and supersedes all previous discussions, understandings, and agreements.  Any amendments to or waiver of the provisions herein shall be made by the parties in writing. 

      20. Severability.  If a sentence, phrase, paragraph, provision, or portion of this Agreement is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed an independent provision and such holding shall not affect the validity of the remaining portion hereto. 

     21. Estoppel Letter.  Upon the request of The Leak Doctor or one of its lenders, the CRA hereby agrees to furnish a letter stating whether (i) this Agreement is in full force and effect, (ii) there are any defaults under this Agreement and, if any, identify them, and (iii) all amounts due and payable hereunder have been paid in full, and, if not, the outstanding balances hereunder.  Such letter shall be furnished within ten (10) days after request therefore. 

     22. Notices.  Any notice required or allowed to be delivered hereunder shall be in writing and deemed to be delivered when (i) hand delivered to the person hereinafter designated, or (ii) upon receipt of such notice when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the party at the address set forth opposite the party00 name below, or at such other address as the applicable party shall have specified, from time to time, by written notice to the other party delivered in accordance herewith: 

CRA:  Thomas Chatmon

      Executive Director

      Community Redevelopment Agency

            Orlando City Hall

            400 S. Orange Ave.

            Orlando, Florida 32801 

Copy to: Victoria Cecil

            Assistant City Attorney

            Orlando City Hall

            400 S. Orange Ave.

            Orlando, Florida 32801 
 

The Leak

Doctor: George E. Surry

            c/o The Leak Doctor

            421 W. Robinson Street

            Orlando, Florida 32801     

     21. Assignment.  The Leak Doctor shall not assign this Agreement without the prior and written consent of the CRA. 

     22. Term.  The term of this Agreement shall be three (3) years, commencing on the Effective Date. 

     23. Effective Date.  This Effective Date of this Agreement shall be the date upon which all parties have fully executed the Agreement.  

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year indicated below. 

                                    The Leak Doctor, Incorporated 

                                    _____________________________________ 

                                    _____________________

                                    Date

                                    _____________________________________

                                    Name

                                    _____________________________________

                                    Title  

ATTEST: 

_____________________________

Secretary 

Sign: _____________________________

Name: _____________________________ 
 

STATE OF FLORIDA

COUNTY OF ORANGE 

      The forgoing instrument was acknowledged before me this _____ day of _________, 2007, by ___________________________________, the __________________________ of The Leak Doctor, Incorporated, on behalf of the company.  He/she is personally known to me or has produced _______________________________________ as identification. 

                                    _____________________________________

                                    Notary Public

                                    _____________________________________

                                    Name

_____________________

                                    Date

                                    _____________________________________

                                    Commission Expires 
 

For the Community Redevelopment Agency 

                                    _____________________________________

                                    Buddy Dyer, Chairman     

                                    _____________________

                                    Date

                                    

ATTEST: 

__________________________________

Thomas C. Chatmon, Jr.

Executive Director, CRA 

Approved as to form and legality for the use and reliance of the CRA only: 

__________________________________

Assistant City Attorney

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