Document:

Exhibit
10.13

 

BOARD OF TRUSTEES OF THE INTERNAL
IMPROVEMENT

TRUST FUND OF THE STATE OF FLORIDA

 

AMENDED AND RESTATED LEASE

 

Lease Number  4022A

 

THIS
AMENDED AND RESTATED LEASE (the “Amended and Restated Lease”), is made and
entered into this 7th day of January, 2005,
between the BOARD OF TRUSTEES, OF THE INTERNAL
IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA, pursuant to its
authority set forth in Section 253.03, Florida Statutes, whose address is
Florida Department of Environmental Protection, Division of State Lands, 3900
Commonwealth Blvd., Mail Station 130, Tallahassee, Florida, 32399-3000,
hereinafter referred to as “LESSOR,” and SMARTPARKS - SILVER
SPRINGS, INC., a Delaware corporation, whose address is 4590
Macarthur Blvd., 400, Newport Beach, California, 92660, and its successors and
assigns, hereinafter referred to as “LESSEE.”

 

R E C I T A L S

 

A.                     WHEREAS, LESSOR, as “LESSOR”, and Florida
Leisure Acquisition Corporation, a Delaware corporation (“FLAC”), as “LESSEE”,
entered into that certain Lease and Sublease Number 4022, dated December 16, 1993
(as amended from time-to-time, the “Lease”), leasing to FLAC the real property
more particularly described therein and all improvements thereon (the “Attraction
Property”); and

 

B.                       WHEREAS, on March 6, 1996, LESSOR did consent
to the assignment of Lease from FLAC to Ogden Entertainment Services, Inc., a
Delaware corporation; and

 

C.                       WHEREAS, on December 30, 1998, LESSOR and
Ogden Entertainment Services, Inc., as “LESSEE” entered into Amendment Number 1
to Lease to extend the term and revise the annual rent payable to LESSOR; and

 

D.                      WHEREAS, on November 9, 2001, LESSOR did
consent to the assignment of Lease from Ogden Entertainment Services, Inc. to
Ogden Parks - Florida, Inc., a Delaware corporation; and

 

E.                        WHEREAS, Ogden Parks - Florida, Inc., changed
its name to Smartparks - Silver Springs, Inc., a Delaware corporation, and is
the current “LESSEE” and successor in interest to Ogden Parks - Florida, Inc.,
under the Lease; and

 

F.                        WHEREAS, LESSOR and LESSEE agree to amend the
Lease to be able to, among other things, revise the annual lease payments so
that LESSEE is able to invest money in needed improvements to and maintenance
of the facilities and the grounds which constitute the Attraction Property; and

 

G.                       WHEREAS, LESSEE agrees for each of the five
(5) calendar years commencing with the calendar year 2005 and ending in the
calendar year 2009, to apply a minimum of Two Hundred Fifty Thousand Dollars ($250,000)
from the savings realized by LESSEE that result from the reduction in the
annual lease fee towards the completion of those items described on Exhibit “D”
attached hereto and by this reference made a part hereof; and

 

H.                      WHEREAS, LESSEE and LESSOR agree to amend the
Lease to eliminate the escrow account provision, which requires funds in the
escrow account to serve as security for LESSEE’S obligation to remove certain
items from the Attraction Property and to perform certain repair or restoration
obligations; and

 

I.                           WHEREAS, LESSEE and LESSOR agree to amend the
Lease to eliminate the provision that requires payment of the final
installation of the purchase price for the Attraction Property because this
obligation has been satisfied; and

 

 

J.                          WHEREAS, LESSEE and LESSOR agree to amend the Lease
to modify the requirements pertaining to the removal of the free-ranging
monkeys from the Attraction Property; and

 

K.                      WHEREAS, LESSEE agrees not to locate any new
animal exhibits within the Attraction Property; and

 

L.                        WHEREAS, LESSEE agrees to continue its removal efforts
of all invasive exotic plants listed on the most recent Category I or Category
II List of Invasive Species, as published by the Florida Exotic Pest Plant
Council, or its successor, from the Attraction Property and all waterways and
maintain the Attraction Property and all waterways as free and clear of all
said invasive exotic plants as is reasonably practicable; and

 

M.                   WHEREAS, because the Attraction Property is
now serviced by a public water and public sewer system for water and sewer
utility service, LESSEE agrees, at its own expense, to remove the existing
sewage treatment facilities from the Attraction Property and restore the area
to its natural state within two (2) years from the effective date of this
Amended and Restated Lease; and

 

N.                      WHEREAS, LESSEE and LESSOR agree to amend the
Lease to reduce the time period that LESSEE has to cure a non-monetary default
from one year to six months; and

 

O.                      WHEREAS, LESSOR agrees to terminate an
easement for the wastewater treatment sprayfield because LESSEE has connected
the Attraction Property to the public water and public sewer systems; and

 

P.                        WHEREAS, LESSOR’S best interest is served when
LESSEE’S net profits are maximized through well-maintained facilities and
grounds which constitute the Attraction Property; and

 

Q.                      WHEREAS, LESSOR is the owner and holder of the
fee simple title to the real property described in Exhibit “A” attached hereto
and by this reference made a part
thereof; and

 

R.                       WHEREAS, the LESSOR and LESSEE intend for this
Amended and Restated Lease to replace and supersede the Lease in its entirety.

 

NOW,
THEREFORE, for good and valuable considerations, the receipt and sufficiency of
which are hereby acknowledged, LESSOR hereby leases to LESSEE, and LESSEE
hereby leases from LESSOR, the lands described in paragraph 2. below, together
with the improvements thereon, on the terms and conditions set forth as
follows:

 

1.                         DELEGATIONS OF AUTHORITY: 
LESSOR’S responsibilities and obligations herein shall be exercised by
the Division of State Lands (“DSL”), Department of Environmental Protection.

 

2.                         DESCRIPTION OF PREMISES:  The
real property subject to this Amended and Restated Lease is situated in the
County of Marion, State of Florida and is more particularly described in
Exhibit “A” attached hereto and hereinafter referred to as the “Attraction
Property.”

 

3.                         TERM: This Amended and Restated Lease shall become effective upon LESSOR’S
and LESSEE’S execution of this Amended and Restated Lease, and continue until
12:00 midnight on December 31, 2029, unless sooner terminated pursuant to the
terms of this Amended and Restated Lease.

 

4.                         ANNUAL FEE DURING TERM OF AMENDED AND RESTATED
LEASE: During the term of
this Amended and Restated Lease, LESSEE shall pay to LESSOR an annual lease fee
(the “Lease Fee”) that is equal to the

 

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following: (i) 6 percent
(6%) of gross revenues (as defined below) derived from the operation of the
Attraction Property during each calendar year (beginning with 2004), up to and
including Seventeen Million Eight Hundred Thousand Dollars ($17,800,000), and
(ii) six and three quarters percent (63/4%) of gross
revenues (as defined below) derived from the operation of the Attraction
Property during each calendar year (beginning with 2004), above Seventeen
Million Eight Hundred Thousand Dollars ($17,800,000). The total Lease Fee paid
by LESSEE to LESSOR in a calendar year shall not be less than Six Hundred
Thousand Dollars ($600,000). For calendar years 2004 through 2028, LESSEE shall
pay this annual Lease Fee to LESSOR in arrears in two equal installments on
March 15 and August 15 of the following calendar year. For calendar year 2029,
LESSEE shall pay this annual Lease Fee no later than December 31, 2029.

 

The term “gross revenues” shall mean the aggregate sum
of all amounts actually received by LESSEE, as cash or on credit, in connection
with the sale of goods and services by LESSEE at, in, upon or from the
Attraction Property. Gross revenues, however, shall not include:

 

(a)          Price discounts or
credits granted or receipts from sales of services or merchandise for which a
refund has been issued or allowances made on services or merchandise claimed to
be defective or unsatisfactory;

 

(b)         The amount of any sales,
use, gross income tax and other similar taxes now or hereafter imposed upon the
sale of merchandise or services;

 

(c)          Sales of fixtures,
equipment or property other than merchandise sales in the ordinary course of
business;

 

(d)         The sales price of any
goods or services offered or sold by any third party vendor, concessionaire or subtenant;
except to the extent that such party either (i) pays rent, a license fee or a
concession fee to LESSEE in which event such sums shall be included in gross
revenues), or (ii) remits revenues (or a portion or percentage thereof) to
LESSEE in connection with a revenue-sharing or similar arrangement (in which
event any such sums that are actually received by LESSEE shall be included in
gross revenues); and 

 

(e)          Sums and credits
received in settlement of claims for loss or damage to merchandise or other
property located at the Attraction Property.

 

5.                         DISCLAIMER:  LESSOR does not warrant or guarantee any
title, right or interest in or to the Attraction Property.

 

6.                         INSURANCE:   During such time as LESSEE has exclusive possession
of the Attraction Property during the term of this Amended and Restated Lease, LESSEE
shall provide comprehensive general liability and property casualty insurance
on the Attraction Property. Such insurance policies shall name the Board of
Trustees of the Internal Improvement Trust Fund of the State of Florida and the
Florida Department of Environmental Protection, as additional parties insured.  Further, the policies shall carry the
governmental immunity endorsement, which states:

 

It is agreed that in the
event of any claim or suit against the insured for damages covered by this
policy, the Company will not deny liability by the use of a defense based upon
governmental immunity.

 

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All
policies shall be subject to the approval of DSL for adequacy and form of
protection, and must at all times comply with all applicable statutes and
rules. All liability policies shall provide limits of at least $300,000 for one
person and $1,000,000 for more than one person injured or killed in any one
accident. The property damage limit shall be at least $1,000,000.

 

LESSEE
shall submit annually during the term of this Amended and Restated Lease,
written evidence of maintaining such insurance policies to the Bureau of Public
Land Administration, Division of State Lands, Department of Environmental
Protection, 3900 Commonwealth Blvd., Mail Station 130, Tallahassee, Florida,
32399-3000. LESSEE shall purchase all policies of insurance from a financially
responsible insurer duly authorized to do business in the State of Florida. The
failure to maintain such policies or certificates in the amounts set forth
shall constitute a breach of this Amended and Restated Lease.

 

7.                         INDEMNITY: During such time as LESSEE has exclusive possession of the Attraction
Property during the term of this Amended and Restated Lease, LESSEE shall
indemnify, defend and save harmless LESSOR from and against all costs
(including reasonable attorneys’ fees), expenses, liabilities, losses, damages,
claims of demands, arising out of LESSEE’S possession of or conduct of the
Attraction Business as hereinafter defined in paragraph 8. upon the Attraction
Property during the term of this Amended and Restated Lease, except such as may
arise as a result of the negligent or willful act or omission of LESSOR, or
LESSOR’S agents or employees.

 

8.                         USE
OF PROPERTY DURING TERM OF THIS AMENDED AND RESTATED LEASE:

 

(a)              During
the term of this Amended and Restated Lease, LESSEE shall only be entitled to
use the Attraction Property to operate its tourist attraction business known as
“Silver Springs” with its associated wildlife park, the “Wild Waters” water
park, exhibits, restaurants, retail shops and other related business and
facilities (the “Attraction Business”) on the Attraction Property in substantially
the same manner in which it has been operated during the two decades preceding
the date hereof, with such modifications, additions, deletions or improvements
as LESSEE in its reasonable judgment deems necessary or useful to make the
Attraction Business a popular, high quality tourist destination and to increase
the number of persons each year (although LESSEE shall not be in breach hereof for
any failure to so increase attendance), subject to the terms and conditions of
this Amended and Restated Lease.

 

(b)             Notwithstanding
anything to the contrary provided herein, LESSOR desires the buildings and
improvements listed in Exhibit “B” attached hereto to remain on the Attraction
Property after the expiration of the term or termination of this Amended and
Restated Lease. LESSEE agrees not to delete any building or improvement listed
in Exhibit “B” without the prior written consent of LESSOR. LESSOR, may from
time to time, remove any buildings or improvements from Exhibit “B”, by written
notice to LESSEE.  After LESSOR deletes a
building or improvement from Exhibit “B”, LESSEE may thereafter, at LESSEE’S
election, remove the building or improvement from the Attraction Property
during the term of this Amended and Restated Lease at LESSEE’S sole cost and
expense, without prior consent of LESSOR. 
No later than the expiration of the term or termination of the term of
this Amended and Restated Lease, LESSEE shall at its sole cost and expense,
remove all buildings and improvements not listed in Exhibit “B” from the
Attraction Property and restore the Attraction Property to its natural state.

 

(c)              LESSEE
shall have the right to continue to operate,

 

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maintain and preserve all existing improvements on the
Attraction Property (consistent with the requirements of subparagraph (e) below
and to add such additional improvements (“New Improvements”) or to remove
existing improvements [except as otherwise specifically provided in paragraph
8.(b) above] as it may deem necessary or useful for the operation of the
Attraction Business, provided that any such New Improvements must comply with
all federal, state and local regulatory requirements, and be located within the
area designated for New Improvements in Exhibit “C” attached hereto; and further provided LESSEE shall, at its
sole cost and expense, remove such New Improvements, if requested by LESSOR on
or before the expiration of the term or termination of the term of this Amended
and Restated Lease and restore the Attraction Property to the condition
existing prior to the construction of such New Improvements which meets all the
requirements set forth above.

 

(d)                                 When
a New Improvement is constructed by LESSEE pursuant to paragraph 8.(c) above,
LESSOR shall designate to LESSEE in writing within ninety (90) days after
LESSEE’S request whether or not the New Improvement shall be added to Exhibit “B”
as an improvement which shall remain after the termination or expiration of the
term of this Amended and Restated Lease and which LESSEE agrees not to remove,
or whether the New Improvement shall be removed by LESSEE at LESSEE’S expense
no later than the termination or expiration of the term of this Amended and
Restated Lease.

 

(e)                                  During
the term of this Amended and Restated Lease, LESSEE shall:

 

(i)                                     Continue
the systematic removal of free ranging monkeys from Attraction Property.

 

(ii)                                  Operate
and maintain the Attraction and its facilities in compliance with all
applicable federal, state, and local regulatory requirements and permits, and
maintain and preserve the Attraction Property and the improvements thereon in
safe operating condition and in compliance with all applicable federal, state
and local regulatory requirements and permits (subject to LESSEE’S right to
remove certain improvements during the term of the Amended and Restated Lease,
as set forth above).

 

(iii)                               Conduct
annual water quality monitoring tests in the Silver River and the Fort King
Waterway. In the event water quality monitoring shows a deterioration in water
quality attributable to LESSEE within a sampling parameter that indicates a
potential source of water quality degradation inside the Attraction Property,
LESSEE, shall in consultation with LESSOR, take appropriate action to locate
the source of degradation and, within 120 days (or longer if determined
appropriate by LESSOR in its reasonable discretion), take appropriate remedial
action to eliminate the source of the degradation. In the event water quality
monitoring shows a deterioration in water quality attributable to some other
source or person other than LESSEE, LESSEE agrees to cooperate with LESSOR
regarding any necessary remedial action to eliminate the source of the
degradation but LESSEE shall not be responsible for the cost of any such
remediation.

 

(iv)                              Maintain
the Ft. King Waterway shoreline and channel as to minimize runoff or other
potential sources of water quality degradation, including vegetating denuded
areas of the shoreline with plants jointly determined to be appropriate by
Attraction Business staff or consultants, and biologist(s) from the State of
Florida, Department of Environmental Protection, Division of Recreation and
Parks, or its successor.

 

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(v)                                 Not
locate any new live animal exhibits within the Attraction Property.

 

(vi)                              Maintain all live animal exhibits in
compliance with all applicable regulations of the United States Department of
Agriculture and the Florida Game and Fresh Water Fish Commission and all
applicable federal, state and local regulations.

 

(vii)                           Continue its removal efforts of all invasive
exotic plants listed on the most recent Category I or Category II List of
Invasive Species, as published by the Florida Exotic Pest Plant Council, or its
successor from the Attraction Property and all waterways and maintain the
Attractions Property and all waterways as free and clear of all said invasive
exotic plants as is reasonably practicable.

 

(viii)                        Remove the existing sewage treatment
facilities from the Attraction Property and restore the area to its natural
state within two (2) years from the execution date of the Amended and Restated
Lease.

 

(ix)                                Maintain all buildings and improvements on
Attraction Property in accordance with applicable codes and ordinances, and as
set forth in applicable sections of maintenance standards guidelines utilized
by the State of Florida, Department of Environmental Protection, Division of
Recreation and Parks, or its successor.

 

(x)                                   Beginning in calendar year 2005, LESSEE shall,
for each of the five (5) calendar years commencing with the calendar year 2005
and ending in calendar 2009, spend a minimum of Two Hundred Fifty Thousand
Dollars ($250,000) (attributable to materials and/or labor, including labor
costs attributable to LESSEE’S staff or employees) toward the completion of
those items described in Exhibit “D” attached hereto and by reference made a
part hereof. Notwithstanding the foregoing, in the event the LESSEE fails to
spend a minimum of Two Hundred Fifty Thousand Dollars ($250,000) in any
calendar year, LESSEE shall not be in default hereunder provided that at the
end of the next calendar year LESSEE has spent a minimum of Five Hundred
Thousand Dollars ($500,000) in the aggregate over the two year period. No later
than March 1st of each calendar year beginning in 2006, LESSEE shall certify in
writing to LESSOR which items on Exhibit “D” were completed during the
preceding calendar year.

 

9.                         DEFAULT AFTER CLOSING: If LESSEE defaults in any of its obligations
to be performed under this Amended and Restated Lease other than its obligation
to pay the Lease Fee when due, and such default is not cured within six (6)
months after receipt of written notice thereof from LESSOR, or if LESSEE fails
to pay any installment of the Lease Fee when due and such default continues for
ninety (90) days after receipt of written notice of such default from LESSOR,
then subject to the rights of lender as set forth below, LESSOR shall have the
right to terminate this Amended and Restated Lease by delivery of written
notice of termination to LESSEE. LESSOR shall deliver a copy of this notice of default given by LESSOR to LESSEE under
this Amended and Restated Lease to Antares Capital Corporation (ACC), 311 South
Wacker Drive, Suite 6400, Chicago, Illinois, 60606, Attention: David Brackett,
and to any lender whose name and address has been furnished to LESSOR in
writing designating such lender as a lender entitled to receive notice of
LESSEE’S default under this Amended and Restated Lease (ACC, and any other
lender hereafter so designated by LESSEE to LESSOR being referred to herein as “Lender”),
and such Lender shall have ninety (90) days after Lender’s receipt of written
notice of LESSEE’S failure to pay an installment of the Lease Fee on the due
date thereof, and six (6) months
after Lender’s

 

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receipt of written notice of
LESSEE’S default in performance of any other obligation under this Amended and
Restated Lease, in which to cure such default on behalf of LESSEE. LESSOR shall
be deemed to have satisfied the requirement of notice to Lender herein if LESSOR has given notice to ACC and
any other Lender(s) specified in writing to LESSOR, by certified mail, return
receipt requested, with postage prepaid, at the address specified by LESSEE to
LESSOR as of the date the installment of the Lease Fee is due or any amounts required to be paid
under this Amended and Restated Lease are due. In the event any such default by
LESSEE is a default in the payment of money due to LESSOR (which shall include
any amounts paid by LESSOR under this Amended and Restated Lease which are the
obligation of LESSEE to pay during the term of this Amended and Restated
Lease), such default shall be deemed to continue until LESSEE or Lender pays
the sum owed to LESSOR, together with interest thereon at the rate of interest
per annum equal to the prime rate or base rate of interest as published by the
Wall Street Journal (fixed as of the date the payment is due), plus three
percentage points (3%), from the date upon which such payment was due until the
payment thereof. In the event ACC, or its successors or assigns should
foreclose its mortgage or security interest in the LESSEE’S leasehold estate,
LESSOR agrees that so long as ACC performs all obligations, both monetary and
non-monetary (to the extent not personal to LESSEE), under and pursuant to the
terms of this Amended and Restated Lease, LESSOR shall honor the terms of this
Amended and Restated Lease and accept ACC as an assignee of this Amended and
Restated Lease, and ACC shall automatically become the tenant of and attorn to
LESSOR. LESSOR acknowledges and agrees that ACC is a third party beneficiary of
the provisions set forth in this paragraph 9., and shall have the right to
enforce the same.

 

10.                   QUIET ENJOYMENT AND RIGHT OF USE: 
LESSEE shall have the right of ingress and egress to, from and upon the
Attraction Property for all purposes necessary to the full quiet enjoyment by
said LESSEE of the rights conveyed herein. 
So long as LESSEE pays the Lease Fee and performs all of its obligations
hereunder:  (i)  LESSEE’S possession of the Attraction
Property will not be disturbed by LESSOR, and (ii)  LESSOR covenants and agrees that it will not surrender
or terminate this Amended and Restated Lease or by action or omission permit to
exist a default under this Amended and Restated Lease which is not cured within
any grace period provided by the terms of this Amended and Restated Lease.

 

11.                   RIGHT OF INSPECTION: 
LESSOR or its duly authorized agents, representatives or employees shall
have the right at any and all times upon advance notice to LESSEE and during
normal business hours (except in case of an emergency) to inspect the
Attraction Property and the works and operations of LESSEE in any manner
pertaining to this Amended and Restated Lease.

 

12.                   NO WAIVER OF BREACH:  The
failure of LESSOR or LESSEE to insist in any one or more instances upon strict
performance of any one or more of the covenants, terms and conditions of this
Amended and Restated Lease shall not be construed as a waiver of such covenants,
terms or conditions, but the same shall continue in full force and effect and
no waiver of LESSOR or LESSEE of any of the provisions hereof shall in any
event be deemed to have been made unless the waiver is set forth in writing,
signed by the party making the waiver.

 

13.                   TIME:  Time is expressly declared to
be of the essence of this Amended and Restated Lease.

 

14.                   NON-DISCRIMINATION: 
LESSEE shall not discriminate against any individual because of that
individual’s race, color, religion, sex, natural origin, age, handicap, or
marital status with respect to

 

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any activity occurring within
the Attraction Property or upon lands adjacent to and used as an adjunct of the
Attraction Property.

 

15.                   UTILITY FEES:  LESSEE shall be responsible for
the payment of all charges for the furnishing of gas, electricity, water and
other public utilities to the Attraction Property and for having all utilities
turned off or transferred to LESSOR when the Attraction Property is
surrendered.

 

16.                   CONDITION OF PREMISES:   LESSOR assumes no liability or
obligation to LESSEE with reference to the condition of the Attraction
Property.  The Attraction Property herein
is leased by LESSOR to LESSEE in an
“AS IS” condition, with LESSOR assuming no responsibility for the care, repair,
maintenance or improvement of the Attraction Property for the benefit of
LESSEE.

 

17.                   NOTICE:  All notices given under this
Amended and Restated Lease shall be in writing and shall be served by certified
mail including, but not limited to, notice of any violation served pursuant to
Section 253.04, Florida Statutes, to the last address of the party to whom
notice is to be given, as designated by such party in writing.  LESSOR and LESSEE hereby designate their
addresses as follows:

 

LESSOR:                Department of Environmental Protection

Division of State Lands

Bureau of Public Land Administration

Mail Station 130

3900 Commonwealth Boulevard

Tallahassee, Florida, 32399-3000

Attention: Bureau Chief

 

LESSEE:                 Smartparks - Silver Springs, Inc.

C/o Festival Fun Parks, LLC

4590 Macarthur Blvd., Suite 400,

Newport Beach, California, 92660

(949)261-0404

Attention: Legal Department

 

18.                   DAMAGE TO THE PREMISES: (a) LESSEE shall not do, or suffer to be
done, in, on or upon the Attraction Property or as affecting said Attraction
Property or adjacent properties, any act which may result in damage or
depreciation of value to the Attraction Property or adjacent properties, or any
part thereof. (b) LESSEE shall not generate, store, produce, place, treat,
release or discharge any contaminants, pollutants or pollution, including, but
not limited to, hazardous or toxic substances, chemicals or other agents on,
into, or from the Attraction Property or any adjacent lands or waters in any
manner not permitted by law. For the purposes of this Amended and Restated
Lease, “hazardous substances” shall mean and include those elements or compounds
defined in 42 USC Section 9601 or which are contained in the list of hazardous
substances adopted by the United States Environmental Protection Agency (EPA)
and the list of toxic pollutants designated by the United States Congress or
the EPA or defined by any other federal, state or local statute, law,
ordinance, code, rule, regulation, order or decree regulating, relating to, or
imposing liability or standards of conduct concerning any hazardous, toxic or
dangerous waste, substance, material, pollutant or contaminant. “Pollutants”
and “pollution” shall mean those products or substances defined in Chapters 376
and 403, Florida Statutes, and the rules promulgated thereunder, all as amended
or updated from time to time. In the event of LESSEE’S failure to comply with
this paragraph, LESSEE shall, at its sole cost and expense, promptly commence
and diligently pursue any and all legally required reports, closures,
investigations, assessments, cleanups, decontaminations, remediation,
restorations and monitoring of (1) the Attraction Property, and (2)

 

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all
off-site ground and surface waters and lands affected by LESSEE’S such failure
to comply, as may be necessary to bring the Attraction Property and other affected
off-site waters and lands into full compliance with all applicable federal,
state or local statutes, laws, ordinances, codes, rules, regulations, orders
and decrees, and to restore the damaged property to the condition existing
immediately prior to the occurrence which caused the damage. LESSEE’S
obligations set forth in this paragraph shall survive the termination or
expiration of this Amended and Restated Lease. This paragraph shall not be
construed as a limitation upon LESSEE’S obligations regarding indemnification
and payment of costs and fees as set forth in paragraph 7. of this Amended and
Restated Lease, nor upon any other obligations or responsibilities of LESSEE as
set forth herein. Nothing herein shall relieve LESSEE of any responsibility or liability
prescribed by law for fines, penalties and damages levied by governmental
agencies, and the cost of cleaning up any contamination caused directly or
indirectly by LESSEE’S activities or facilities. Upon discovery of a release of
a hazardous substance or pollutant in violation of any applicable laws, or any
other violation of local, state or federal law, ordinance, code, rule,
regulation, order or decree relating to the generation, storage, production,
placement, treatment, release or discharge of any contaminant, LESSEE shall, as
required by applicable law, report such violation to all applicable
governmental agencies having jurisdiction, and to LESSOR, all within the
reporting periods of the applicable governmental agencies.

 

19.                   SURRENDER OF PREMISES:   Upon
termination or expiration of this Amended and Restated Lease, LESSEE shall
surrender the Attraction Property to LESSOR. 
Prior to surrender of all or any part of the Attraction Property a
representative of the DSL shall perform an on-site inspection and the keys to
any building on the Attraction Property shall be turned over to DSL.

 

20.                   BEST MANAGEMENT PRACTICES:   LESSEE
shall implement applicable Best Management Practices for all activities
conducted under this Amended and Restated Lease in compliance with paragraph 18-2.018(2)(h),
Florida Administrative Code, which have been selected, developed, or approved
by LESSOR, LESSEE or other land managing agencies for the protection and enhancement
of the Attraction Property.

 

21.                   PROHIBITIONS AGAINST LIENS OR OTHER
ENCUMBRANCES:   LESSOR
holds fee title to the Attraction Property. LESSEE shall not do or permit
anything to be done which purports to create a lien or encumbrance of any
nature against the real property contained in the Attraction Property
including, but not limited to, mortgages (other than leasehold mortgages)  or construction liens against the Attraction
Property or against any interest of LESSOR therein.

 

22.                   PARTIAL INVALIDITY:   If
any term, covenant, condition or provision of this Amended and Restated Lease
shall be ruled by a court of competent jurisdiction, to be invalid, void, or unenforceable,
the remainder shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

 

23.                   ARCHAEOLOGICAL AND HISTORIC SITES:   Execution of this Amended and Restated Lease
in no way affects any of the parties' obligations pursuant to Chapter 267, Florida
Statutes.   The collection of artifacts
or the disturbance of archaeological and historic sites on state-owned lands is
prohibited unless prior authorization has been obtained from the Department of
State, Division of Historical Resources.

 

24.                   DUPLICATE ORIGINALS:   This Amended and Restated Lease is executed in
duplicate originals each of which shall be considered an original for all
purposes.

 

9

 

25.                   COMPLIANCE WITH LAWS:   LESSEE agrees, in connection with its operation
of the Attraction Business, to obtain all applicable required permits and
comply will all applicable permits, regulations, ordinances, rules, and laws of
the State of Florida or the United States or of any political subdivision or
agency of either applicable thereto.

 

26.                   SECTION CAPTIONS:   Articles, subsections, and other captions contained
in this Amended and Restated Lease are for reference purposes only and are in
no way intended to describe, interpret, define or limit the scope, extent or
intent of this Amended and Restated Lease or any provisions thereof.

 

27.                   SUBMERGED LANDS:  
LESSOR hereby grants to LESSEE the right to use all existing structures
which preempt those sovereignty submerged lands which are included within the
legal description of the Attraction Property for the maintenance and repair of
docks or similar facilities for use in connection with the operation of
LESSEE’S Attraction Business on the Attraction Property, provided the same does
not endanger the water quality of the spring, and further provided that the
same shall be removed at LESSEE’S expense, prior to termination of the LESSEE’S
possession of the Attraction Property pursuant to this Amended and Restated
Lease.

 

28.                   ASSIGNMENT:   LESSEE shall not have the right to assign this
Amended and Restated Lease, without the prior written consent of LESSOR, not to
be unreasonably withheld, conditioned or delayed. LESSEE shall have the right
to mortgage or grant a security interest in its leasehold estate and interest
hereunder, without the consent of LESSOR.

 

29.                   MEMORANDUM:   A memorandum of this Amended and Restated
Lease in the form attached hereto as Exhibit “E” shall be executed by the parties
at the time of execution of this Amended and Restated Lease, and shall be
recorded at LESSEE’S expense in the public records of Marion County, Florida.

 

30.                   ATTORNEYS’ FEES:   In connection with any dispute arising out of
this Lease, including without limitation litigation and appeals, LESSOR shall
be entitled to recover its reasonable attorneys’ fees and costs, if LESSOR is
the prevailing party.

 

31.                   VENUE PRIVELEGES:   LESSOR and LESSEE agree that LESSOR has venue
privileges as to any litigation arising from matters relating to this Amended
and Restated Lease.  Any such litigation
between LESSOR and LESSEE shall be initiated and maintained only in Leon County,
Florida.

 

32.                   RIGHT OF AUDIT:   LESSEE shall make available to LESSOR all financial
and other records relating to this Amended and Restated Lease, and LESSOR shall
have the right to either audit such records at any reasonable time or require
the submittal of an annual independent, detailed, financial audit, performed by
a certified pubic accountant according to generally accepted accounting
principles and auditing standards verifying all financial records pertaining to
this Amended and Restated Lease, during the term of this Amended and Restated
Lease.  This right shall be continuous until
this Amended and Restated Lease expires or is terminated. This Amended and
Restated Lease may be terminated by LESSOR should LESSEE fail to allow public
access to all documents, papers, letters or other materials made or received in
conjunction with this Amended and Restated Lease, pursuant to the provisions of
Chapter 119, Florida Statutes. In addition, LESSEE shall be required to
maintain and allow public access to all such documents, papers, letters or other
materials made or received in conjunction with this Amended and

 

10

 

Restated
Lease for a period of three years after the expiration or termination of this
Amended and Restated Lease.

 

33.                   CONDITIONS AND COVENANTS:   All
of the provisions of this Amended and Restated Lease shall be deemed covenants
running with the land included in the Attraction Property, and construed to be
“conditions” as well as “covenants” as though the words specifically expressing
or imparting covenants and condition were used in each separate provision.

 

34.                   PARTIAL INVALIDITY:   If
any term, covenant, condition or provision of this Amended and Restated Lease
shall be ruled by a court of competent jurisdiction, to be invalid, void, or
unenforceable, the remainder shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

 

35.                   SALES TAX:   LESSEE shall be responsible
for the payment of all required sales tax calculated on the rental payments of
this Amended and Restated Lease as required by Section 212.031, Florida
Statutes and shall submit such sales tax in addition to and along with the
Lease Fee required by paragraph 4. of this Amended and Restated Lease, unless
LESSEE provides written documentation verifying that the Department of Revenue
has authorized LESSEE to pay the required sales tax by direct payment to the
Department of Revenue or that the Department of Revenue has issued LESSEE an
exemption for such sales tax payments.

 

36.                   CONVICTION OF FELONY:  If
LESSEE or any principal thereof is convicted of a felony during the term of
this Amended and Restated Lease, such conviction shall constitute, at the
option of LESSOR, grounds for termination of this Amended and Restated Lease.

 

37.                   ENTIRE UNDERSTANDING:  This
Amended and Restated Lease sets forth the entire understanding between the
parties and shall only be amended by a written amendment executed by LESSOR and
LESSEE.

 

38.                   GOVERNING LAW:  This
Amended and Restated Lease shall be governed by and interpreted according to
the laws of the State of Florida.

 

11

 

IN WITNESS WHEREOF, the undersigned have caused this
Amended and Restated Lease to be executed by their duly authorized officers or
agents on the day and year first above written.

Signed, sealed and delivered

In the presence of:

 

	
   

  	
  BOARD OF TRUSTEES OF THE

  
	
  /s/ Tracy Peters

  	
   

  	
  INTERNAL IMPROVEMENT TRUST

  
	
  Original Signature of
  Witness

  	
   

  	
  FUND OF THE STATE OF FLORIDA

  
	
   

  	
   

  	
   

  
	
  /s/ Tracy Peters

  	
   

  	
  By:

  	
  /s/ Eva Armstrong

  	
   

  
	
  Print/Type Name of Witness

  	
   

  	
  Eva Armstrong, Director,

  
	
   

  	
   

  	
  Division of State Lands,

  
	
  /s/ Richard L. Malloy

  	
   

  	
   

  	
  Department of Environmental 

  
	
  Original Signature of
  Witness

  	
   

  	
  Protection, as agent for

  
	
   

  	
   

  	
  and on behalf of the Board

  
	
  /s/ Richard L. Malloy

  	
   

  	
   

  	
  of Trustees of the Internal 

  
	
  Print/Type Name of Witness

  	
   

  	
   

  	
  Improvement Trust Fund of

  
	
   

  	
   

  	
  the State of Florida

  
						

 

Approved as the Form

And Legality

 

	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  DEP Attorney 

  

 

 

	
  Signed, sealed and delivered

  	
  SMARTPARKS – SILVER SPRINGS,

  
	
  in the presence of:

  	
  INC., a Delaware corporation

  

 

	
  /s/ Monica Gonzalez

  	
   

  	
   

  
	
  Original Signature of
  Witness

  	
   

  	
  By:

  	
  /s/ Lloyd Butterfield

  	
   

  
	
   

  	
   

  	
   

  	
  Lloyd Butterfield

  
	
  /s/ Monica Gonzalez

  	
   

  	
   

  	
  Vice President

  
	
  Print/Type Name of Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Lloyd Butterfield

  	
   

  
	
  /s/ Donna Moller

  	
   

  	
   

  	
  Printed/Type
  Name

  
	
  Original Signature of Witness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Donna Moller

  	
   

  	
   

  	
   

  
	
  Print/Type Name of Witness

  	
   

  	
   

  	
  (Corporate Seal)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  “LESSEE”

  	
   

  
							

 

12

 

STATE
OF FLORIDA

COUNTY OF LEON

 

The foregoing instrument was acknowledged before
me this 7th day of January, 2005
by Eva Armstrong, as Director, Division of State Lands, Department of
Environmental Protection, as agent for and on behalf of the Board of Trustees
of the Internal Improvement Trust Fund of the State of Florida. She is
personally known to me.

 

	
   

  	
  /s/ Avis G. Lockett

  	
   

  
	
   

  	
  Notary Public, State of Florida

  

 

 

CALIFORNIA ALL-PURPOSE
ACKNOWLEDGMENT

 

	
  State of California

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.

  
	
  County of Orange

  	
  )

  	
   

  

 

On Nov. 22, 2004, before me, Marla L. Dasch, Notary Public personally
appeared Lloyd Butterfield, Vice President of Smartparks-Silver Springs, Inc, a
Delaware corporation, on behalf of the corporation

 

	
   

  	
  ý
  personally known to me

  
	
   

  	
  o
  proved to me on the basis of satisfactory evidence

  
	
   

  	
   

  
	
  [SEAL]

  	
  to be the person(s) whose name(s) is/are subscribed
  to the within instrument and acknowledged to me that he/she/they executed the
  same in his/her/their authorized capacity(ies), and that by his/her/their
  signature(s) on the instrument the person(s), or the entity upon behalf of
  which the person(s) acted, executed the instrument.

  
	
   

  	
   

  
	
   

  	
  WITNESS my hand and official seal

  
	
   

  	
   

  
	
   

  	
  /s/ Marla L. Dasch

  	
   

  
	
  Place Notary Seal Above

  	
  Signature of
  Notary Public

  

 

OPTIONAL

Though the information below is
not required by law, it may prove valuable to persons relying on the document and
could prevent fraudulent removal and reattachment of this form to another
document.

 

Description of Attached Document

Title or Type of Document: Board of Trustees of the Internal
Improvement Trust Fund of the State of Florida Amended & Restated Lease

 

Document
Date:                                                          Number
of Pages: 30 (page 13)

 

Signer(s) Other Than Named
Above:                           

 

	
  Capacity(ies) Claimed by Signer

  	
   

  
	
  Signer’s Name: Lloyd Butterfield

  	
  RIGHT THUMBPRINT

  OF SIGNER

  
	
  o
  Individual

  	
   

  
	
  ý
  Corporate Officer — Title(s): Vice President

  	
  Top of thumb here

  
	
  o
  Partner — o Limited o
  General

  	
   

  
	
  o
  Attorney in Fact

  	
   

  
	
  o
  Trustee

  	
   

  
	
  o
  Guardian or Conservator

  	
   

  
	
  o
  Other:

  	
   

  
	
   

  	
   

  
	
  Signer is Representing:  Smartparks - Silver Springs, Inc.

  	
   

  

 

© 1997 National Notary Association - 8350 De Soto Ave., P.O. Box 2402 -
[ILLEGIBLE], CA 91313-2402     Prod. No. 5907     Reorder: Call Toll-Free 1-800-875-6827

 

13

 

EXHIBIT “A”

 

Commence
at the Southwest corner of the Southwest 1/4 of Section 6, Township 15 South,
Range 23 East, Marion County, Florida; thence North 00°07’50” East along the
West boundary of said Southwest 1/4, 1274.29 feet to a point on a line that is
parallel with and 50.00 feet South, as measured at right angles, from the South
boundary of the North 1/2 of the South 1/2 of said Section 6, said point also
being the Point of Beginning; thence South 89°55’23” East along said line
2666.35 feet; thence departing said line South 89°01’15” East, 637.37 feet;
thence North 18°54’57” West, 25.95 feet; thence North 06°29’54” East, 207.15
feet; thence North 02°01’31” West, 355.62 feet; thence North 34°20’24” East,
126.14 feet; thence South 86°37’16” East, 378.02 feet; thence North 85°38’14”
East, 160.77 feet; thence North 13°04’24” East, 176.46 feet; thence North 47°27’50”
East, 63.73 feet; thence North 47°36’54” East, 117.31 feet; thence North 28°40’17”
East, 178.49 feet; thence North 25°47’33” West, 1421.40 feet; thence North
33°35’01” East, 50.59 feet; thence North 24°18’31” East, 101.12 feet; thence
North 13°58’51” West, 40.43 feet, thence North 80°49’17” West, 55.69 feet;
thence North 67°42’57” West, 22.58 feet; thence North 30°33’06” East, 46.26
feet to a point on the South right of way line of State Road No. 40 (200 feet
wide), thence South 83°30’01” West, 1276.17 feet to the point of curvature of a
tangent curve concave Southeasterly and having as its elements a central angle
of 29°25’16” and a radius of 913.02 feet; thence Southwesterly along the arc of
said curve and said right of way line 468.83 feet to the point of reverse
curvature of a curve concave Northwesterly and having as its elements a central
angle of 12°13’48” and a radius of 918.99 feet; thence Southwesterly along the
arc of said curve and said right of way line 196.16 feet; thence departing said
curve continue along said right of way line North 23°40’42” West, 66.97 feet to
a point of curvature of a non–tangent curve concave Northwesterly and having as
its elements a central angle of 25°03’58” and a radius of 852.02 feet; thence
Westerly along the arc of said curve and said right of way line 372.75 feet
(chord bearing and distance of South 78°45’52” West, 369.78 feet) to a point of
tangency; thence continue along said right of way line North 88°42’43” West,
182.88 feet to the point of curvature of a tangent curve concave Northerly and
having as its elements a central angle of 04°51’22” and a radius of 1950.07
feet; thence Westerly along the arc of said curve and said right of way line
165.28 feet to the point of tangency;
thence continue along said right of way line North 88°40’16” West, 1428.32 feet
to the point of curvature of a tangent curve concave Southeasterly and having
as its elements a central angle of 43°42’29” and a radius of 914.67 feet;
thence Southwesterly along the arc of said curve and said right of way line
697.75 feet, thence departing said curve and said right of way line South 89°57’08”
East, 122.39 feet; thence South 00°05’35” West, 103.11 feet; thence South 89°50’13”
West, 143.70 feet; thence South 49°22’36” West, 3.67 feet; thence North 51°25’38”
West, 57.49 feet to a point on the Southeasterly right of way line of
aforementioned State Road No. 40, said point also being on a non–tangent curve
concave Southeasterly and having as its elements a central angle of 04°11’11”
and a radius of 914.67 feet; thence Southwesterly along the arc of said curve
and said right of way line 66.83 feet (chord bearing and distance of South
39°25’31” West, 66.82 feet) to the point of tangency thereof; thence continue
along said right of way line South 37°15’26” West, 93.32 feet to the
intersection with the East right of way line of County Road No. 35 (80 feet
Wide); thence South 00°11’38” East along said East right of way line 1764.83 feet to the
intersection with the North boundary of the South 1/2 of the Southeast 1/4 of
Section 1, Township 15 South, Range 22

 

14

 

East; thence continue
along said right of way line and said North boundary North 89°38’19” East,
10.00 feet; thence departing said North boundary, continue along said right of
way line South 00°04’06” West, 50.00 feet to a point on a line that is parallel
with and 50.00 feet South, as measured at right angles, from said North
boundary of the South 1/2 of the Southeast 1/4 of said Section 1; thence
departing said right of way line and along said parallel line North 89°38’19”
East, 1262.89 feet to the Point of Beginning.

 

LESS
AND EXCEPT THE FOLLOWING:

 

Commence at the
intersection of the Easterly right-of-way line of County Road No. 35 with the
Southerly right-of-way line of State Road No. 40; thence North 37°26’20” East along said Southerly right-of-way
line, 93.40 feet to the point of curvature of a curve concave Southeasterly,
having a total central angle of 14°05’53” and a radius of 914.67 feet; thence
Northeasterly along the arc of said curve and along said Southerly right-of-way
line, through a central angle of 10°21’48”, a distance of 165.44 feet to the
Point of Beginning; thence continue Northeasterly along said Southerly
right-of-way line, and said curve, through a central angle of 3°44’05”, a distance of 59.62 feet; thence departing said curve and
said Southerly right-of-way line, South 44°12’15” East, 54.03 feet; thence
North 89°57’08” West, 83.05 feet
to the Point of Beginning.

 

15

 

EXHIBIT “B”

 

BUILDINGS AND IMPROVEMENTS TO REMAIN
ON ATTRACTION PROPERTY

 

	
  Building 1:

  	
   

  	
  Antique car exhibit building and personnel
  building, two stories (20,222 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 2:

  	
   

  	
  Antique car exhibit
  buildings (2 buildings, single story, wood frame (2,326 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 3:

  	
   

  	
  Sewage lift station, one
  story frame building sewage lift pumps and electrical service

  
	
   

  	
   

  	
   

  
	
  Storage

  Building:

  	
   

  	
  Small, masonry wall and
  wood framed storage building located along walk to safari area (190 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 5:

  	
   

  	
  Pearl Pavilion (250 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 6:

  	
   

  	
  Wood framed, covered rest
  areas on ease side of main springs (4 structures), brick walls, wood decking,
  decorative handrails, bulkhead at springs, post lamps, paddle fans and
  electrical work (3,690 s.f. wood decking, 1,232 s.f. shed roof, 360 l.f.
  brick wall, 13 lamp posts)

  
	
   

  	
   

  	
   

  
	
  Building 7:

  	
   

  	
  Store and concrete bulkhead
  at perimeter at main springs, east side (340 l.f.)

  
	
   

  	
   

  	
   

  
	
  Building 8:

  	
   

  	
  Covered structure at glass
  bottom boat docking and loading area including all related work and bulkhead
  (9,308 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 9:

  	
   

  	
  Retail shops, restaurants
  and public rest room facilities. Includes walk-in coolers and built-in
  kitchen exhaust hoods and fans. Excludes kitchen equipment (26,673 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 9A:

  	
   

  	
  Administrative offices on
  second floor above Building 9 (5,502 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 10:

  	
   

  	
  The Pavilion, retail shop
  (2,000 s.f.) 

  
	
   

  	
   

  	
   

  
	
  Small dock in front of Building 10 (15’ x 15’)

  
	
   

  	
   

  	
   

  
	
  Building 11:

  	
   

  	
  Main entrance booths and
  gates (3 structures, 2,355 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 12:

  	
   

  	
  Main entrance ticket sales
  building (2,394 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 13:

  	
   

  	
  Operations and marketing
  office building (3,882 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 14:

  	
   

  	
  Wood framed, covered
  seating at entrance to Silver Springs (2 each, 475 s.f.)

  
	
   

  	
   

  	
   

  
	
  Water fountain at entrance
  walk to Silver Springs ticket area (575 s.f.)

  
	
   

  	
   

  	
   

  
	
  Wood framed pedestrian
  bridge and ornamental handrails at entrance walk to Silver Springs ticket
  area (29’ x 155’)

  
	
   

  	
   

  	
   

  
	
  Building 15:

  	
   

  	
  Beer bar, open wood framed
  roof structure with bar around perimeter, Cypress Point (1.32 s.f.)

  

 

16

 

	
  Building 16:

  	
   

  	
  Snake display area and
  related amenities, wood framed structure, Cypress Point (2,575 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 17:

  	
   

  	
  Display building (Rattle
  Snake Theater, 720 s.f.)

  
	
   

  	
   

  	
   

  
	
  Buildings

  	
   

  	
   

  
	
  18, 19 and 20: 

  	
   

  	
  Reptile show amphitheater,
  including public address system and closed circuit TV system (7830 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 21:

  	
   

  	
  Small building for office
  and storage for reptile show amphitheater personnel (739 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 22:

  	
   

  	
  Billy Bowlegs Café.
  Includes walk-in cooler. Excludes kitchen equipment and furnishings (2,592
  s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 23:

  	
   

  	
  Public rest rooms, Cypress
  Point, includes sewage lift pumps (806 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 24:

  	
   

  	
  Cypress Point Ice Cream
  Sales (144 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 25:

  	
   

  	
  Cypress Point Gift Shop
  (2,426)

  
	
   

  	
   

  	
   

  
	
  Building 26:

  	
   

  	
  Sign structures at entrance
  to Jungle Cruise area

  
	
   

  	
   

  	
   

  
	
  Building 27:

  	
   

  	
  Exotic bird shelters (3
  each, 1,521 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 28:

  	
   

  	
  Jungle Cruise boat dock and
  small office structure (1,875 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 31:

  	
   

  	
  Restroom building at Safari
  area (813 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 32:

  	
   

  	
  Gift shop and covered Jeep
  Safari entrance areas (5,498 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 

  	
   

  	
   

  
	
  32B:

  	
   

  	
  Small gazebo located on
  walkway from Jeep Safari to giraffe area (12’ x 12’)

  
	
   

  	
   

  	
   

  
	
  Building 33:

  	
   

  	
  Sea Hunt Cabin (448 s.f.)

  
	
   

  	
   

  	
   

  
	
  Safari Jeep

  	
   

  	
   

  
	
  Storage

  	
   

  	
   

  
	
  Building:

  	
   

  	
  Metal Building, open on
  both ends (3,600 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 35:

  	
   

  	
  Giraffe barn in safari area (650 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 37:

  	
   

  	
  Warehouse and offices at maintenance area (7,053
  s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 38:

  	
   

  	
  Maintenance warehouse and offices (6,940 s.f.)

  
	
   

  	
   

  	
   

  
	
  Small utility building located north of Building 40
  (10.5’ x 14.5’)

  
	
   

  	
   

  	
   

  
	
  Building 39:

  	
   

  	
  Paint shop (2,480 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 40:

  	
   

  	
  Equipment storage barn (1,713 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 41:

  	
   

  	
  Pump house, well #6, pump and storage tank (pump
  house, 120 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 42:

  	
   

  	
  Jungle Cruise boat marina,
  dry dock and boat hoist (28,535 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 44:

  	
   

  	
  Wildlife area food storage
  and food preparation building including walk-in cooler (1,880 s.f.)

  
	
   

  	
   

  	
   

  
	
  New pole barn on north aide
  of Building 43.

  

 

17

 

	
  Building 47:

  	
   

  	
  Small metal storage
  building (410 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 48:

  	
   

  	
  Pole barn for hay storage
  (2,880 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 50:

  	
   

  	
  Giraffe Barn (1,152 s.f.)

  
	
   

  	
   

  	
   

  
	
  Pizza building

  
	
   

  	
   

  	
   

  
	
  Twin Oaks Mansion

  
	
   

  	
   

  	
   

  
	
  World of Bears

  
	
   

  	
   

  	
   

  
	
  Kids Ahoy Play area

  
	
   

  	
   

  	
   

  
	
  Branson Theater Bird show

  
	
   

  	
   

  	
   

  
	
  Parking lot toll booth (2)

  
	
   

  	
   

  	
   

  
	
  panther Prowl exhibit

  
	
   

  	
   

  	
   

  
	
  Big gator lagoon

  
	
   

  	
   

  	
   

  
	
  Wild Waters:

  	
   

  	
  Concrete walk (55,873 s.f.)

  
	
   

  	
   

  	
  Kool deck over concrete
  (6,700 s.f.)

  
	
   

  	
   

  	
  Picnic area concrete pads
  (5,340 s.f.)

  
	
   

  	
   

  	
  Wood posts with light
  fixtures (8 each)

  
	
   

  	
   

  	
  Wood decking in Kiddie Pool
  area (1,133 s.f.)

  
	
   

  	
   

  	
  Outdoor carpet (1,236 s.y.)

  
	
   

  	
   

  	
  Flagpoles (34 each)

  
	
   

  	
   

  	
  Wood fencing (2,915 l.f.)

  
	
   

  	
   

  	
  Chain link fencing and
  gates and lamp posts

  
	
   

  	
   

  	
  (4,009 l.f. - fencing, 28 -
  lamp posts)

  
	
   

  	
   

  	
  Asphalt paving (behind wave
  pool to Silver Springs

  
	
   

  	
   

  	
  Boulevard, 5,000 s.f.)

  
	
   

  	
   

  	
  Concrete walk behind wave
  pool (4,318 s.f.)

  
	
   

  	
   

  	
  Brick wall in front of
  Pizza Palace (154 l.f.)

  
	
   

  	
   

  	
  Sewage lift station and
  force main

  
	
   

  	
   

  	
  Aluminum barbecue screened
  area (160 s.f.)

  
	
   

  	
   

  	
  Chlorine building (72 s.f.)

  
	
   

  	
   

  	
  Brick planter near Game
  Room (35 l.f.)

  
	
   

  	
   

  	
  Water distribution piping
  from well to each building

  
	
   

  	
   

  	
  Cool Kids cove

  
	
   

  	
   

  	
  Twin Twister water slide

  
	
   

  	
   

  	
  Twin Twister rest rooms

  
	
   

  	
   

  	
  Tornado water slide

  
	
   

  	
   

  	
   

  
	
  Building 51:

  	
   

  	
  Ticket booth (400 s.f.),
  Entrance trellis (2,250 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 52:

  	
   

  	
  Shelters at entrance (2
  each, 200 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 53:

  	
   

  	
  Entry and exit booth (240
  s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 54:

  	
   

  	
  Shelters at each side of
  entry and exit booth (2 each, 336 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 55:

  	
   

  	
  Wild Pit Bar-B-Q (1,444
  s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 56:

  	
   

  	
  Hurricane flume and catch
  pool

  
	
   

  	
   

  	
   

  
	
  Building 57:

  	
   

  	
  Bath house, restrooms, game
  room, gift shop, raft rental (3,663 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 57A:

  	
   

  	
  Pizza Palace (385 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 58:

  	
   

  	
  Surf’s Up Café (1,428 s.f.)

  

 

18

 

	
  Building 59

  	
   

  	
  Covered Pavilion next to
  Surfs Up Café (1,900 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 60:

  	
   

  	
  Ice Cream snack bar (450
  s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 61:

  	
   

  	
  Restroom building (576
  s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 62:

  	
   

  	
  Wave pool building (2,464
  s.f.)

  Wave pool and filter system

  Pneumatic wave pool equipment and control system

  
	
   

  	
   

  	
   

  
	
  Building 63:

  	
   

  	
  Employee lounge and walk-in
  freezer (526 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 64:

  	
   

  	
  Storage shed (278 s.f.)

  
	
   

  	
   

  	
   

  
	
  Building 65:

  	
   

  	
  The Bonanza pool and slide

  
	
   

  	
   

  	
   

  
	
  Building 66:

  	
   

  	
  The Silver Bullet flumes
  and pool

  
	
   

  	
   

  	
   

  
	
  Basketball court - (1,250
  s.f.)

  

 

Suspended
concrete decking and fencing on east side of wave pool (3,312 s.f.)

 

Lockers
and shed roof (170 s.f.) includes lockers

 

Pool
equipment building (adjacent to basketball court, 240 s.f.)

 

Pump
building for flumes and water wheel (400 s.f.)

 

19

 

EXHIBIT “C”

 

NEW IMPROVEMENTS AREA

 

Commence at the Southwest corner of the Southwest 1/4 of Section 6,
Township 15 South, Range 23 East, Marion County, Florida; thence North
00°07’50” East along the West boundary of said Southwest 1/4, 1274.29 feet to a
point on a line that is parallel with and 50.00 feet South, as measured at
right angles, from the South boundary of the North 1/2 of the South 1/2 of said
Section 6, said point also being the point of beginning; thence South 89°55’23”
East along said line 2666.35 feet; thence departing said line South 89°01’15”
East, 637.37 feet; thence North 18°54’57” West, 25.95 feet, thence North
06°29’54” East, 207.15 feet; thence North 02°01’31” West, 355.62 feet; thence
North 34°20’24” East, 126.14 feet; thence South 86°37’16” East, 378.02 feet,
thence North 83°38’14” East, 160.77 feet; thence North 13°04’24” East, 176.46
feet; thence North 47°27’50” East, 63.73 feet; thence North 47°36’54” East,
117.31 feet; thence North 28°40’17” East, 178.49 feet, thence South 76°23’11”
West, 190.18 feet; thence North 36°37’44” West, 123.62 feet, thence North
13°55’16” West, 56.54 feet; thence South 42°58’44” West, 162.93 feet, thence
South 75°19’08” West, 66.38 feet; thence North 89°11’08” West, 117.25 feet;
thence South 61°09’14” West, 126.16 feet; thence South 41°25’21” West, 119.20
feet; thence South 64°02’40” West, 63.43 feet; thence South 54°14’15” West,
136.55 feet; thence North 48°28’46” West, 103.63 feet; thence South 87°36’19”
West, 336.76 feet; thence South 80°59’30” West, 144.76 feet; thence North
58°42’00 West, 148.29 feet; thence North 55°05’09” West, 265.89 feet; thence
South 87°14’31” West, 153.64 feet; thence South 57°45’54” West, 219.51 feet;
thence North 85°07’44” West, 139.99 feet; thence North 50°10’58” West, 261.51
feet; thence North 53°16’56” West, 111.02 feet; thence North 81°34’08” West,
68.34 feet; thence South 54°44’41” West, 172.61 feet; thence South 55°49’18”
West, 86.42 feet; thence South 22°30’31” West, 121.89 feet; thence South
49°12’21” West, 225.33 feet; thence South 68°20’12” West, 217.91 feet; thence
North 86°21’38” West, 110.12 feet; thence South 66°20’29” West, 282.60 feet;
thence South 69°10’31” West, 103.57 feet; thence South 05°34’19” East, 60.94
feet; thence South 27°03’43” West, 77.33 feet; thence South 19°14’07” West,
72.31 feet; thence South 09°39’24” East, 52.34 feet; thence South 44°19’12”
West, 27.89 feet; thence North 75°52’11” West, 102.58 feet; thence North
34°47’44” East, 98.34 feet; thence South 76°03’52” West, 50.34 feet; thence
South 44°15’07” West, 94.48 feet; thence South 18°34’47” West, 43.38 feet;
thence North 62°07’04” West, 47.24 feet; thence South 86°29’13” West, 397.30
feet; thence South 81°58’17” West, 23.19 feet, thence South 65°25’12” West,
7.75 feet; thence South 84°09’45” West, 24.44 feet; thence North 42°09’39”
West, 8.63 feet; thence North 03°16’33” West, 29.85 feet; thence North 37°11’00”
West, 8.03 feet; thence

 

20

 

North 03°52’29” East, 291.64 feet; thence South 42°20’25” West, 118.37 feet; thence North 55°06’04” West, 66.94 feet; thence North 38°29’28” East, 465.07 feet; thence North 63°37’18” East, 112.01 feet; thence North 20°43’01” East, 157.69 feet; thence North 24°32’53” East, 66.44 feet; thence North 47°50’31” East, 95.36 feet; thence North 39°26’12” East, 81.66
feet; thence North 68°46’10”
West, 56.12 feet; thence North 63°51’20”
West, 53.19 feet, thence North 26°27’17”
East, 105.93 feet; thence North 14°20’52”
East, 50.47 feet; thence North 26°48’44”
East, 73.36 feet; thence North 39°40’18”
East, 64.19 feet; thence South 75°54’30”
East, 4.81 feet; thence North 43°52’24”
East, 15.54 feet; thence North 81°49’29”
East, 24.45 feet; thence North 77°18’51”
East, 41.03 feet; thence South 78°59’07”
East, 41.44 feet; thence South 59°39’40”
East, 39.34 feet; thence South 35°36’34”
East, 39.18 feet; thence South 12°05’56”
West, 49.46 feet; thence South 13°30’42”
West, 75.64 feet; thence South 39°20’17”
East, 76.95 feet; thence South 48°10’20”
East, 138.64 feet; thence South 69°12’30”
East, 39.76 feet; thence South 88°27’55”
East, 27.07 feet; thence North 80°04’49”
East, 159.98 feet; thence North 66°46’41”
East, 66.45 feet; thence North 67°16’04”
East, 365.99 feet; thence North 47°57’27”
East, 106.78 feet; thence South 80°21’54”
East, 82.10 feet; thence South 43°20’53”
East, 36.16 feet; thence South 81°05’55”
East, 52.26 feet; thence North 00°55’42”
West, 87.08 feet; thence North 53°37’32”
East, 73.19 feet; thence South 70°51’54”
East, 47.48 feet; thence South 35°02’32”
East, 52.49 feet; thence South 06°11’38”
East, 64.96 feet; thence North 58°39’46”
East, 78.47 feet; thence North 26°22’15”
East, 68.69 feet; thence North 18°23’16”
West, 78.61 feet; thence North 49°30’19”
East, 168.98 feet; thence North 11°58’14”
East, 160.83 feet; thence North 08°04’27”
East, 138.40 feet; thence North 03°06’33”
West, 122.31 feet to a point on the South right of way line of State Road No.
40 (200 feet wide), said point being on a non-tangent curve concave
Southeasterly and having as its elements a central angle of 2°55’51” and a radius of 918.99 feet;
thence Southwesterly along the arc of said curve and said right of way line
47.01 feet (chord bearing and distance of South 64°50’37” West, 47.00 feet), thence departing said curve continue along
said right of way line North 23°40’42”
West, 66.97 feet to a point of curvature of a non-tangent curve concave
Northwesterly and having as its elements a central angle of 25°03’58” and a radius of 852.00 feet;
thence Westerly along the arc of said curve and said right of way line 372.75
feet (chord bearing and distance of South 78°45’52” West, 369.78 feet) to a point of tangency; thence continue
along said right of way line North 88°42’43”
West, 182.88 feet to the point of curvature of a tangent curve concave
Northerly and having as its elements a central angle of 04°51’22” and a radius of 1950.07 feet;
thence Westerly along the arc of said curve and said right of way line 165.28
feet to the point of tangency; thence continue along said right of way line
North 88°40’16” West, 1428.32
feet to the point of curvature of a tangent curve concave Southeasterly and
having as its elements a central angle of 43°42’29” and a radius of 914.67 feet; thence Southwesterly along

 

21

 

the arc of said curve and
said right of way line 697.75 feet; thence departing said curve and said right
of way line South 89°57’08” East, 122.39 feet; thence South 00°05’36” West,
103.11 feet; thence South 89°50’13” West, 143.70 feet; thence South 49°22’36”
West, 3.67 feet; thence North 51°25’38” West, 57.49 feet to a point on the
southeasterly right of way line of aforementioned State Road No. 40, said point
also being on a non-tangent curve concave Southeasterly and having as its
elements a central angle of 04°11’11” and a radius of 914.67 feet; thence
Southwesterly along the arc of said curve and said right of way line 66.83 feet
(chord bearing and distance of South 39’25’31” West, 66.82 feet) to the point
of tangency thereof; thence continue along said right of way line South 37°15’26”
West, 93.32 feet to the intersection with the West right of way line of County
Road No. 35 (80 feet wide); thence South 00°11’38” East along said West right
of way line 1764.83 feet to the intersection with the South boundary of the
North 1/2 of the South 1/2 of the Southwest 1/4 of Section 1, Township 15
south, Range 22 East; thence continue along said right of way line and said
South boundary North 89°38’19” East, 10.00 feet; thence departing said South
boundary, continue along said right of way line South 00°04’06” West, 50.00
feet to a point on a line that is parallel with and 50.00 feet South, as
measured at right angles, from said South boundary of the North 1/2 of the
South 12 of said section 7, thence departing said right of way line and along
said parallel line North 89°38’19” East, 1262.89 feet to the point of
beginning.

 

22

 

EXHIBIT “D”

 

FACILITIES REPAIR LIST

 

	
  1.

  	
   

  	
  Replace the Roof on the
  Main Building Including Administration

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Replace the Wood Trim &
  Paint Human Resource (MR) &

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Administration Buildings

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Replace the Roof at the
  Glass Bottom Boat Dock

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Replace 9 A/C’s on Main Building

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Resurface the Guest Parking
  Lot

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Renovate the Main Restroom

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Paint the Front Entrance,
  Main Mall & HR Building

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Replace the Walk In Cooler
  & Freezer in the Food
  Warehouse

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Replace the Roof on
  Operations Building Including Guest Restrooms

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Replace the A/C’s at 5 of
  the Gift Shops on Main Building

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Replace the Roof at Fort
  King River Ride Dock

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Replace the Roof on Billy
  Bowlegs Food Building

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Repair & Replace
  Concrete Walkways in Guest Areas

  
	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Repair the Sea Wall along
  the Main Spring & Glass Bottom Boat Dock

  
	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Renovate the Island
  Restroom

  
	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Replace the Floor in the
  HR/Meeting Hall Building

  
	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Main Building General Wood
  Repairs

  
	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Replace the Bridge Deck
  going to Island (Capybara Pen to WC Ray)

  
	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Replace the Electrical
  Panel in the Switch Gear Mechanical Room

  
	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Replace the Roof of
  Theater 2 on the Island

  
	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Replace the Roof of
  Theater 3 on the Island

  
	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Renovate Guest Restroom at
  DooLittles

  

 

23

 

 

	
  23.

  	
   

  	
  Repair & Retexture the Interior Ceiling of
  Main Mall Area

  
	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Replace the Roof on the
  Catering Building

  
	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Replace the A/C Unit for
  Museum & HR

  
	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Renovate the Guest
  Restrooms in the Operations Building

  
	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Wood Repairs at the Lost
  River & Fort King Boat Docks

  
	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  Replace the A/C Unit in the
  Pizza Building

  
	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  Replace the 5 Electrical
  Panels in Main Mall Building

  
	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  Replace the Damaged
  Lighting along Guest Walkways

  
	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  Replace the Wood Siding on
  the HR/Meeting Hall Building

  
	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  Replace the Interior
  Ceilings in the Operations Buildings

  
	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Replace 2 Electrical Panels
  in Downstairs Administration Building

  
	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Replace the Carpeting in
  the Operations Building

  
	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  Replace the Main Lift
  Station Pumps

  
	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  Replace the Maintenance
  Lift Station Pump

  
	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  Replace the Electrical Panel
  in the Native American Building

  
	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  Replace the A/C Unit at
  Cypress Market Gift Shop

  
	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  Repair the Lighting in the
  HR Building

  
	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  Replace the Walk In Cooler
  Inside Springside Café

  
	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  Replace the Island Lift
  Station Pump

  
	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
  Repair the Interior Walls
  & Ceilings in HR/Meeting Hall Building

  
	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  Replace the Carpeting in
  the Cypress Market Gift Shop

  
	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
  Repair the Roof of Theater
  1 on the Island

  
	
   

  	
   

  	
   

  
	
  45.

  	
   

  	
  Repair the Concrete Void at
  the Glass Bottom Boat Dock

  
	
   

  	
   

  	
   

  
	
  46.

  	
   

  	
  Wood Structure Repair of
  the Pavilion Gift Shop & Historical Showcase

  

 

24

 

	
  47.

  	
   

  	
  Replace the Skylights along
  the Main Walkway

  
	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
  Interior Wall Repairs to
  the HR/Meeting Hall Building

  
	
   

  	
   

  	
   

  
	
  49.

  	
   

  	
  Replace the Sewer Plant
  Lift Station Pump

  
	
   

  	
   

  	
   

  
	
  50.

  	
   

  	
  Replace the Electrical
  Panel in the HR Mechanical Room

  
	
   

  	
   

  	
   

  
	
  51.

  	
   

  	
  Paint the Operations
  Building

  
	
   

  	
   

  	
   

  
	
  52.

  	
   

  	
  Structure Repairs for Billy
  Bowlegs Food Building

  
	
   

  	
   

  	
   

  
	
  53.

  	
   

  	
  Replace Electrical Panel at
  the Fort King Waterway Ride

  
	
   

  	
   

  	
   

  
	
  54.

  	
   

  	
  Replace Electrical Panel
  Behind Guest Service Building

  
	
   

  	
   

  	
   

  
	
  55.

  	
   

  	
  Replace Electrical Panel at
  Springside Café

  
	
   

  	
   

  	
   

  
	
  56.

  	
   

  	
  Wood Structure Repair of
  Cypress Market Gift Shop

  
	
   

  	
   

  	
   

  
	
  57.

  	
   

  	
  Replace Electrical Panel at
  Lost River Break room

  
	
   

  	
   

  	
   

  
	
  56. 

  	
   

  	
  Replace the Upper Rail at
  the Glass Bottom Boat Dock

  

 

25

 

EXHIBIT “E”

 

MEMORANDUM OF AMENDED AND RESTATED LEASE

 

Lease Number 4022A

 

This MEMORANDUM OF AMENDED
AND RESTATED LEASE is made this       day of             , 200   , between the BOARD OF TRUSTEES OF THE INTERNAL  IMPROVEMENT TRUST FUND OF THE STATE OF
FLORIDA, pursuant to its
authority set forth in Section 253.03, Florida Statutes, whose address is
Florida Department of Environmental Protection, Division of State Lands, 3900
Commonwealth Blvd., Mail Station 130, Tallahassee, Florida 32399-3000,
hereinafter referred to as “LESSOR,” and SMARTPARTS - SILVER
SPRINGS, INC., a Delaware corporation, whose address is 4590
Macarthur Blvd., Suite 400, Newport Beach, California, 92660, and its
successors and assigns, hereinafter referred to as “LESSEE,” as a Memorandum of
that certain Amended and Restated Lease, dated of even date herewith.

 

1.             PREMISES: The premises that are subject to the Amended and Restated Lease are
the lands that are more particularly described on Exhibit “A” attached hereto
together with the improvements thereon (the “Attraction Property”).

 

2.             TERM:  The term of the Amended and
Restated Lease shall become effective upon LESSOR’S and LESSEE’S execution of
the Amended and Restated Lease, and continue until 12:00 midnight on December
31, 2029, unless sooner terminated pursuant to the terms of the Amended and
Restated Lease, during which time, LESSEE shall have the exclusive right of
possession, use and quiet enjoyment of the Attraction Property.

 

3.             MODIFICATIONS:  The
sole purpose of this Memorandum of Amended and Restated Lease is to give public
notice of the Amended and Restated Lease, and none of the terms or conditions
of the Amended and Restated Lease are modified hereby, nor shall this
instrument be deemed to vary in any respect whatsoever, the terms, provisions,
covenants, covenants, conditions and limitations of the Amended and Restated
Lease. A true copy of the Amended and Restated Lease may be inspected at the
offices of the Bureau of Public Land Administration, Division of State Lands,
State of Florida Department of Environmental Protection, 3900 Commonwealth
Blvd., Room 370G, Tallahassee, Florida, 32399-3000.

 

4.             EXISTING MEMORANDUM OF LEASE:  This
Memorandum of Amended and Restated Lease replaces and supersedes in its
entirety the Memorandum of Lease that is dated December 16, 1993 and recorded
in Official Records Book 1988, Page 0231, Public Records of Marion County, Florida.

 

26

 

IN
WITNESS WHEREOF, the undersigned have caused this Memorandum of Amended and
Restated Lease to be executed by their duly authorized officers or agents on
the day and year first above written.

 

	
  Signed, sealed and delivered

  	
   

  
	
  in the presence of:

  	
   

  
	
   

  	
  BOARD OF TRUSTEES OF 

  
	
   

  	
   

  	
  THE INTERNAL IMPROVEMENT
  TRUST 

  
	
  Original Signature of Witness

  	
  FUND OF THE STATE OF
  FLORIDA

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Print/Type Name of Witness

  	
   

  	
  Eva Armstrong, Director,

  
	
   

  	
   

  	
  Division of State Lands,

  
	
   

  	
   

  	
   

  	
  Department of Environmental 

  
	
  Original Signature of Witness

  	
   

  	
  Protection, as agent for

  
	
   

  	
   

  	
  and on behalf of the Board

  
	
   

  	
   

  	
   

  	
  of Trustees of the Internal 

  
	
  Print/Type Name of Witness

  	
   

  	
  Improvement Trust Fund of

  
	
   

  	
   

  	
  the State of Florida

  
	
   

  	
   

  	
   

  
							

 

Approved as to Form

And Legality

 

	
  By:

  	
   

  	
   

  
	
   

  	
  DEP Attorney

  

 

 

	
  Signed, sealed and delivered 

  	
  SMARTPARKS – SILVER
  SPRINGS,

  
	
  in the presence of:

  	
  INC., a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Original Signature of Witness

  	
   

  	
  Lloyd Butterfield 

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print/Type Name of Witness

  	
   

  	
  Printed/Typed Name

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Original Signature of Witness

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print/Type Name of Witness

  	
  (Corporate Seal)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “LESSEE”

  	
   

  
						

 

27

 

STATE
OF FLORIDA

COUNTY OF LEON

 

The foregoing instrument
was acknowledged before me this               
day of                  ,
200    by Eva Armstrong, as Director, Division of State Lands,
Department of Environmental Protection, as agent for and on behalf of the Board
of Trustees of the Internal Improvement Trust Fund of the State of
Florida.  She is personally known to me.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public, State of Florida

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed, Typed or Stamped Name

  	
   

  
	
   

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commission Number:

  	
   

  	
   

  
						

 

	
  STATE OF

  	
   

  	
   

  
	
  COUNTY OF

  	
   

  	
   

  
				

 

The
foregoing instrument was acknowledged before me this                    
day of
                   ,
200    by                   ,
as Vice President of SMARTPARKS – SILVER SPRINGS, INC., a Delaware corporation,
on behalf of the corporation.  He/she is
personally known to me or has produced a valid driver’s license as
identification.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public, State of Florida

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed, Typed or Stamped Name

  	
   

  
	
   

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commission Number:

  	
   

  	
   

  
						

 

28

 

EXHIBIT “A”

 

Commence at the Southwest
corner of the Southwest 1/4 of Section
6, Township 15 South, Range 23 East, Marion County, Florida; thence North 00°07’50”
East along the West boundary of said Southwest 1/4, 1274.29 feet to a point on
a line that is parallel with and 50.00 feet South, as measured at right angles,
from the South boundary of the North 1/2 of the South 1/2 of said Section 6,
said point also being the point of Beginning; thence South 89°55’23” East along
said line 2666.35 feet; thence departing said line South 89°01’15” East, 631.37
feet; thence North 18°54’57” West, 25.95 feet; thence North 06°29’54” East,
207.15 feet; thence North 02°01’31” West, 355.62 feet; thence North 34°20’24”
East, 126.14 feet; thence South 86°37’16” East, 378.02 feet; thence North 85°38’14”
East, 160.77 feet, thence North 13°04’24” East, 176.46 feet; thence North 47°27’50”
East, 63.73 feet; thence North 47°36’54” East, 117.31 feet; thence North 28°40’17”
East, 178.49 feet; thence North 25°47’33” West, 1421.40 feet; thence North
33°35’01” East, 50.59 feet; thence North 24°18’31” East, 101.12 feet; thence
North 13°58’51” West, 40.43 feet, thence North 80°49’17” West, 55.69 feet;
thence North 67°42’57” West, 22.58 feet; thence North 30°33’06” East, 46.26
feet to a point on the South right of way line of State Road No. 40 (200 feet
wide), thence South 83°30’01” West, 1276.17 feet to the point of curvature of a
tangent curve concave Southeasterly and having as its elements a central angle
of 29°25’16” and a radius of 913.02 feet; thence Southwesterly along the arc of
said curve and said right of way line 468.83 feet to the point of reverse
curvature of a curve concave Northwesterly and having as its elements a central
angle of 12°13’48” and a radius of 918.99 feet; thence Southwesterly along the
arc of said curve and said right of way line 196.16 feet; thence departing said
curve continue along said right of way line North 23°40’42” West, 66.97 feet to
a point of curvature of a non-tangent curve concave Northwesterly and having as
its elements a central angle of 25°03’58” and a radius of 852.02 feet; thence
Westerly along the arc of said curve and said right of way line 372.75 feet
(chord bearing and distance of South 78°45’52” West, 369.78 feet) to a point of
tangency; thence continue along said right of way line North 88°42’43” West,
182.88 feet to the point of curvature of a tangent curve concave Northerly and
having as its elements a central angle of 04°51’22” and a radius of 1950.07
feet; thence Westerly along the arc of said curve and said right of way line
165.28 feet to the point of tangency; thence continue along said right of way
line North 88°40’16” West, 1428.32 feet to the point of curvature of a tangent
curve concave Southeasterly and having as its elements a central angle of 43°42’29”
and a radius of 914.67 feet; thence Southwesterly along the arc of said curve
and said right of way line 697.75 feet, thence departing said curve and said
right of way line South 89°57’08” East, 122.39 feet; thence South 00°05’35”
West, 103.11 feet; thence South 89°50’13” West, 143.70 feet; thence South 49°22’36”
West, 3.67 feet; thence North 51°25’38” West, 57.49 feet to a point on the
Southeasterly right of way line of aforementioned State Road No. 40, said point
also being on a non-tangent curve concave Southeasterly and having as its
elements a central angle of 04°11’11” and a radius of 914.67 feet; thence
Southwesterly along the arc of said curve and said right of way line 66.83 feet
(chord bearing and distance of South 39°25’31” West, 66.82 feet) to the point
of tangency thereof; thence continue along said right of way line South 37°15’26”
West, 93.32 feet to the intersection with the East right of way line of County
Road No. 35 (80 feet Wide); thence South 00°11’38” East along said East right
of way line 1764.83 feet to the intersection with the North boundary of the
South 1/2 of the Southeast 1/4 of Section 1, Township 15 South, Range 22

 

29

 

East; thence continue along
said right of way line and said North boundary North 89°38’19” East, 10.00
feet; thence departing said North boundary, continue along said right of way
line South 00°04’06” West, 50.00 feet to a point on a line that is parallel
with and 50.00 feet South, as measured at right angles, from said North
boundary of the South 1/2 of the Southeast 1/4 of said Section 1; thence
departing said right of way line and along said parallel line North 89°38’19”
East, 1262.89 feet to the Point of Beginning.

 

LESS
AND EXCEPT THE FOLLOWING:

 

Commence
at the intersection of the Easterly right-of-way line of County Road No. 35
with the Southerly right-of-way line of State Road No. 40; thence North 37°26’20”
East along said Southerly right-of-way line, 93.40 feet to the point of curvature
of a curve concave
Southeasterly, having a total central angle of 14°05’53” and a radius of 914.67
feet; thence Northeasterly along the arc of said curve and along said Southerly
right-of-way line, through a central angle of 10°21’48”, a distance of 165.44
feet to the Point of Beginning; thence continue Northeasterly along said
Southerly right-of-way line, and said curve, through a central angle of 3°44’05”,
a distance of 59.62 feet; thence departing said curve and said Southerly right-of-way
line, South 44°12’15” East, 54.03 feet; thence North 89°57’08” West, 83.05 feet
to the Point of Beginning.

 

30Exhibit 10.14

 

COMMERCIAL GROUND
LEASE

 

July 14, 1999

 

LANDLORD:

 

Realty Income Corporation

a Maryland corporation

 

TENANT:

 

Splish Splash at Adventureland, Inc.

a New York corporation

 

PREMISES LOCATION:

 

Splish Splash at Adventure Land, Store No.

2549 Splish Splash Drive

Riverhead, New York 11901

 

 

COMMERCIAL GROUND LEASE

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
  1.1

  	
  Lease Year

  	
   

  	
  1

  
	
   

  	
  1.2

  	
  Hazardous Material

  	
   

  	
  1

  
	
   

  	
  1.3

  	
  Environmental Law

  	
   

  	
  2

  
	
  2.

  	
  PREMISES

  	
   

  	
  2

  
	
  3.

  	
  TERM

  	
   

  	
  2

  
	
   

  	
  3.1

  	
  Term

  	
   

  	
  2

  
	
   

  	
  3.2

  	
  First Option to Extend

  	
   

  	
  2

  
	
   

  	
  3.3

  	
  Second Option to Extend

  	
   

  	
  3

  
	
   

  	
  3.4

  	
  Third Option to Extend

  	
   

  	
  3

  
	
  4.

  	
  MONTHLY RENT

  	
   

  	
  3

  
	
   

  	
  4.1

  	
  Net-Net-Net Lease

  	
   

  	
  3

  
	
   

  	
  4.2

  	
  Monthly Rent

  	
   

  	
  3

  
	
   

  	
  4.3

  	
  Monthly Rent During the Extension Periods

  	
   

  	
  4

  
	
  5.

  	
  ADDITIONAL RENT

  	
   

  	
  4

  
	
   

  	
  5.1

  	
  Consumer Price Index Rental Increase

  	
   

  	
  4

  
	
  6.

  	
  SUBSTITUTE RENT AND INCREASES

  	
   

  	
  5

  
	
  7.

  	
  SECURITY DEPOSIT

  	
   

  	
  5

  
	
  8.

  	
  USE OF THE PREMISES

  	
   

  	
  5

  
	
  9.

  	
  PROPERTY TAXES,
  ASSESSMENTS AND UTILITIES

  	
   

  	
  6

  
	
   

  	
  9.1

  	
  Tenant’s Required Payments

  	
   

  	
  6

  
	
   

  	
  9.2

  	
  Payments Not Required by Tenant

  	
   

  	
  7

  
	
   

  	
  9.3

  	
  Assessments

  	
   

  	
  7

  
	
   

  	
  9.4

  	
  Utility Payments

  	
   

  	
  7

  
	
   

  	
  9.5

  	
  Tenant’s Right to Contest Utility Charges, Contest
  Taxes and Seek Reduction of Assessed Valuation of the Premises

  	
   

  	
  7

  
	
   

  	
  9.6

  	
  Landlord Not Required to Join in Proceedings or
  Contest Brought by Tenant

  	
   

  	
  8

  
	
   

  	
  9.7

  	
  Tax Period and Adjustment of Taxes

  	
   

  	
  8

  
	
  10.

  	
  BUILDING AND IMPROVEMENTS; TRADE FIXTURES

  	
   

  	
  8

  
	
   

  	
  10.1

  	
  Building and Improvements

  	
   

  	
  8

  
	
   

  	
  10.2

  	
  Depreciation and Investment Tax Credit

  	
   

  	
  9

  
	
   

  	
  10.3

  	
  Trade Fixtures

  	
   

  	
  9

  
	
   

  	
  10.4

  	
  Removal of Trade Fixtures

  	
   

  	
  9

  
	
   

  	
  10.5

  	
  Financing of Tenant’s Property

  	
   

  	
  10

  
	
  11.

  	
  MAINTENANCE OF THE PREMISES

  	
   

  	
  10

  
	
   

  	
  11.1

  	
  Obligation to Maintain the Premises

  	
   

  	
  10

  
	
   

  	
  11.2

  	
  Obligation to Keep the Premises Clear

  	
   

  	
  10

  
	
  12.

  	
  REPAIRS AND ALTERATIONS

  	
   

  	
  10

  
	
   

  	
  12.1

  	
  Right to Make Alterations

  	
   

  	
  10

  
	
   

  	
  12.2

  	
  Tenant Shall Not Render Premises Liable For Any Lien

  	
   

  	
  11

  
	
  13.

  	
  INDEMNITY AND INSURANCE

  	
   

  	
  11

  
	
   

  	
  13.1

  	
  Indemnification

  	
   

  	
  11

  
	
   

  	
  13.2

  	
  Insurance Company Requirement

  	
   

  	
  12

  
	
   

  	
  13.3

  	
  Insurance Certificate Requirements

  	
   

  	
  12

  
	
   

  	
  13.4

  	
  Minimum Acceptable Insurance Coverage Requirements

  	
   

  	
  13

  

 

i

 

	
   

  	
  13.5

  	
  Additional Insureds

  	
   

  	
  14

  
	
   

  	
  13.6

  	
  Mortgage Endorsement

  	
   

  	
  14

  
	
   

  	
  13.7

  	
  Renewals, Lapses or Deficiencies

  	
   

  	
  14

  
	
  14.

  	
  PARTIAL AND TOTAL DESTRUCTION OF THE PREMISES

  	
   

  	
  14

  
	
  15.

  	
  CONDEMNATION

  	
   

  	
  15

  
	
   

  	
  15.1

  	
  Condemnation Damages

  	
   

  	
  15

  
	
   

  	
  15.2

  	
  Termination of Lease Due to Condemnation

  	
   

  	
  15

  
	
  16.

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  	
  16

  
	
   

  	
  16.1

  	
  Tenant’s Right of Assignment and Subletting

  	
   

  	
  16

  
	
   

  	
  16.2

  	
  Landlord’s Option to Preserve Subtenancies

  	
   

  	
  16

  
	
   

  	
  16.3

  	
  Tenant’s Assignment of All Rent from Subletting as
  Security for Tenant’s Obligations

  	
   

  	
  16

  
	
   

  	
  16.4

  	
  Continuing Obligation of Tenant

  	
   

  	
  17

  
	
   

  	
  16.5

  	
  Fees and Costs with Regard to Proposed Assignment or
  Sublease

  	
   

  	
  17

  
	
   

  	
  16.6

  	
  Landlord’s Right of Assignment

  	
   

  	
  17

  
	
  17.

  	
  DEFAULT AND TERMINATION

  	
   

  	
  17

  
	
   

  	
  17.1

  	
  Event of Default

  	
   

  	
  17

  
	
   

  	
  17.2

  	
  Landlord’s Remedies

  	
   

  	
  19

  
	
   

  	
  17.3

  	
  Late Charge

  	
   

  	
  22

  
	
   

  	
  17.4

  	
  Right of Landlord to Re-Enter

  	
   

  	
  22

  
	
   

  	
  17.5

  	
  Surrender of Premises

  	
   

  	
  23

  
	
   

  	
  17.6

  	
  Interest Charges

  	
   

  	
  23

  
	
   

  	
  17.7

  	
  Tenant’s Default

  	
   

  	
  23

  
	
   

  	
  17.8

  	
  Default by Landlord

  	
   

  	
  23

  
	
  18.

  	
  RIGHT OF INSPECTION

  	
   

  	
  24

  
	
  19.

  	
  WAIVER OF BREACH

  	
   

  	
  24

  
	
  20.

  	
  NOTICES

  	
   

  	
  24

  
	
   

  	
  20.1

  	
  Notice Requirements

  	
   

  	
  24

  
	
   

  	
  20.2

  	
  Payments Under Lease

  	
   

  	
  25

  
	
  21.

  	
  RELATIONSHIP OF THE PARTIES

  	
   

  	
  25

  
	
  22.

  	
  SUBORDINATION, ATTORNMENT AND ESTOPPEL

  	
   

  	
  25

  
	
   

  	
  22.1

  	
  Subordination and Non-Disturbance

  	
   

  	
  25

  
	
   

  	
  22.2

  	
  Attornment

  	
   

  	
  26

  
	
   

  	
  22.3

  	
  Estoppel Certificate

  	
   

  	
  26

  
	
  23.

  	
  TENANT’S FINANCIAL STATEMENTS

  	
   

  	
  27

  
	
  24.

  	
  ATTORNEYS’ FEES

  	
   

  	
  27

  
	
   

  	
  24.1

  	
  Recovery of Attorneys’ Fees and Costs of Suit 

  	
   

  	
  27

  
	
   

  	
  24.2

  	
  Party to Litigation

  	
   

  	
  28

  
	
   

  	
  24.3

  	
  Landlord’s Consent

  	
   

  	
  28

  
	
  25.

  	
  CONSENT

  	
   

  	
  28

  
	
  26.

  	
  AUTHORITY TO MAKE LEASE; COVENANT OF QUIET ENJOYMENT

  	
   

  	
  28

  
	
   

  	
  26.1

  	
  Full Power and Authority to Enter Lease

  	
   

  	
  28

  
	
   

  	
  26.2

  	
  Quiet Enjoyment

  	
   

  	
  28

  
	
   

  	
  26.3

  	
  No Violation of Covenants and Restrictions

  	
   

  	
  28

  
	
  27.

  	
  HAZARDOUS MATERIAL

  	
   

  	
  29

  
	
   

  	
  27.1

  	
  Environmental Compliance

  	
   

  	
  29

  
	
   

  	
  27.2

  	
  Tenant’s Responsibility for Hazardous Materials

  	
   

  	
  29

  
	
   

  	
  27.3

  	
  Survival

  	
   

  	
  30

  
	
  28.

  	
  GENERAL PROVISIONS

  	
   

  	
  30

  
	
   

  	
  28.1

  	
  Gender; Number

  	
   

  	
  30

  
	
   

  	
  28.2

  	
  Captions

  	
   

  	
  30

  
	
   

  	
  28.3

  	
  Exhibits

  	
   

  	
  30

  
	
   

  	
  28.4

  	
  Entire Agreement

  	
   

  	
  30

  

 

ii

 

	
   

  	
  28.5

  	
  Drafting

  	
   

  	
  30

  
	
   

  	
  28.6

  	
  Modification

  	
   

  	
  31

  
	
   

  	
  28.7

  	
  Joint and Several Liability

  	
   

  	
  31

  
	
   

  	
  28.8

  	
  Governing Law

  	
   

  	
  31

  
	
   

  	
  28.9

  	
  Attorneys’ Fees

  	
   

  	
  31

  
	
   

  	
  28.10

  	
  Time of Essence

  	
   

  	
  31

  
	
   

  	
  28.11

  	
  Severability

  	
   

  	
  31

  
	
   

  	
  28.12

  	
  Successors and Assigns

  	
   

  	
  31

  
	
   

  	
  28.13

  	
  Independent Covenants

  	
   

  	
  31

  
	
   

  	
  28.14

  	
  Information Provided

  	
   

  	
  32

  
	
   

  	
  28.15

  	
  Limitation of Landlord’s Liability

  	
   

  	
  32

  
	
   

  	
  28.16

  	
  No Lease Until Accepted

  	
   

  	
  32

  
	
   

  	
  28.17

  	
  Counterparts

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “A” - Legal Description of Real Property

  	
   

  	
   

  
	
  Exhibit “B” - Memorandum of Lease

  	
   

  	
   

  

 

iii

 

COMMERCIAL GROUND
LEASE

 

This Commercial Ground
Lease (the “Lease”) is as of July 14, 1999, between Realty Income Corporation,
a Maryland corporation (“Landlord”), and Splish Splash at Adventureland, Inc.,
a New York corporation (“Tenant”), with reference to the recitals set forth
below.

 

RECITALS

 

A.            Landlord
is the owner of that certain real property (the “Premises”), the legal
description of which is attached hereto and incorporated herein as Exhibit “A,”
commonly known as:

 

Splish Splash at
Adventure Land

2549 Splish Splash
Drive

Riverhead, New York
11901

 

B.            Landlord
desires to lease the Premises to Tenant, and Tenant desires to lease the
Premises from Landlord pursuant to the provisions of this Lease.

 

1.
DEFINITIONS

 

The following terms, when
used in this Lease, shall have the meaning set forth in this Section.

 

1.1           Lease
Year

 

The term “Lease Year”
shall mean the first twelve (12) full calendar months following the
Commencement Date (as defined herein) and each subsequent twelve (12) month
period thereafter during the term and any extensions.

 

1.2           Hazardous
Material

 

The term “Hazardous
Material” means any substance, material, or waste which is toxic, ignitable,
reactive, or corrosive and which is or becomes regulated by the local or state
governmental authority or the United States Government.  The term “Hazardous Material” includes,
without limitation, any material or substance which is (i) defined as a “hazardous
waste,” “extremely hazardous waste,” “restricted hazardous waste,” “hazardous
substance,” or “hazardous material,” by any local, state or federal law, (ii)
oil and petroleum products and their by-products, (iii) asbestos, or
asbestos-containing materials, (iv) designated as a “hazardous substance”
pursuant to the Federal Water Pollution Control Act, (v) defined as a “hazardous
waste” pursuant to the Federal Resource Conservation and Recovery Act, or (vi)
defined as a “hazardous substance” pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act.

 

1

 

1.3           Environmental
Law

 

The term “Environmental
Law” shall mean any law, statute, regulation, order, or rule now or hereafter
promulgated by any governmental entity, whether local, state, or federal,
relating to air pollution, water pollution, noise control, and/or transporting,
storing, handling, discharge of or disposal of Hazardous Material, including,
without limitation, the following: the Clean Air Act; the Resource Conservation
and Recovery Act, as amended by the Hazardous Waste and Solid Waste Amendments
of 1984; the Comprehensive Environmental Response Compensation and Liability
Act, as amended by the Superfund Amendments and Reauthorization Act of 1986;
the Toxic Substances Control Act; the Federal Insecticide, Fungicide and
Rodenticide Act, as amended; the Safe Drinking Water Act; OSHA; the Hazardous
Liquid Pipeline Safety Act; the Hazardous Materials Transportation Act; and the
National Environmental Policy Act, as the same may be amended from time to
time.

 

2. PREMISES

 

Landlord leases to Tenant
and Tenant leases from Landlord the Premises on the terms and conditions set
forth in this Lease.

 

3. TERM

 

3.1           Term

 

The effective date (the “Commencement
Date”) of this Lease shall be the date upon which escrow is deemed closed
pursuant to that certain Purchase Agreement and Escrow Instructions of even
date herewith by and between Tenant, as seller, and Landlord, as buyer.
Concurrently with recording of the deed transferring ownership of the Premises
to Landlord, the Memorandum of Lease, a copy of which is attached hereto and
incorporated herein as Exhibit “B,” shall be recorded by Tenant. The expiration
date of the term shall be last day of the month thirty-four and one-half (34 1⁄2)
years thereafter, unless extended as set forth in Sections 3.2, 3.3, and
3.4.  References to the term of the Lease
shall include extensions, if any. Except as otherwise expressly stated, the
terms and conditions of this Lease shall remain in effect during any extension,
renewal, or holdover of the initial term.

 

3.2         First
Option to Extend

 

On or before one hundred
twenty (120) days prior to the expiration of the term, and providing Tenant is
not in default of this Lease, Tenant may extend the term of this Lease for an
additional sixty (60) months by notifying Landlord of such intention in writing
(the “First Extension Period”). The maximum term of the Lease with one
extension is thirty-nine and one-half (391⁄2) years.

 

2

 

3.3           Second
Option to Extend

 

On or before one hundred
twenty (120) days prior to the expiration of the First Extension Period, and
providing Tenant is not in default of this Lease, Tenant may extend the term of
this Lease for an additional sixty (60) months by notifying Landlord of such
intention in writing (the “Second Extension Period”). The maximum term of the
Lease with the second extension is forty-four and one-half (441⁄2) years.

 

3.4           Third
Option to Extend

 

On or before one hundred
twenty (120) days prior to the expiration of the First Extension Period, and
providing Tenant is not in default of this Lease, Tenant may extend the term of
this Lease for an additional forty-two (42) months by notifying Landlord of
such intention in writing (the “Third Extension Period”). The maximum term of
the Lease with the third extension is forty-eight (48) years.

 

4.
MONTHLY RENT

 

4.1          Net-Net-Net
Lease

 

This is a net-net-net
lease. It is the intention of Landlord and Tenant that the Monthly Rent (as
defined below) and other sums and charges provided herein shall be absolutely
net to Landlord. Except as otherwise specifically set forth in this Lease,
Tenant shall pay all costs, charges, obligations, assessments, and expenses of
every kind and nature against or relating to the Premises or the use,
occupancy, area, possession, leasing, operation, management, maintenance, or
repair thereof, which may arise or become due during the term hereof, or which
may pertain to this transaction which concerns the Premises, whether or not now
customary or within the contemplation of the parties hereto, and which, except
for the execution and delivery of this Lease, would have been payable by
Landlord.

 

4.2          Monthly
Rent

 

Tenant shall pay to
Landlord as monthly rent (the “Monthly Rent”) an amount equal to Thirty Four
Thousand Forty-One Dollars and 67/100ths ($34,041.67). Monthly Rent shall be
payable by Tenant to Landlord in advance in equal monthly installments
commencing upon the Commencement Date and on the first day of each calendar
month thereafter, without prior notice, invoice, demand, deduction, or offset whatsoever.
Landlord shall have the right to accept all rent and other payments, whether
full or partial, and to negotiate checks and payments thereof without any
waiver of rights, irrespective of any conditions to the contrary sought to be
imposed by Tenant. All rent shall be paid to Landlord at the address to which
notices to Landlord are given. The Monthly Rent for any partial month shall be
prorated based upon a thirty (30) day month.

 

3

 

4.3           Monthly
Rent During the Extension Periods

 

In the event Tenant
exercises its option to extend the term of the Lease as set forth above, the
Monthly Rent for each Extension Period shall be the greater of the Monthly Rent
paid during the previous year, or the prevailing fair market rent as determined
by an MAI Appraiser, which Appraiser is acceptable to Landlord and Tenant, and
is paid equally by Tenant and Landlord. The Base Monthly Rent shall then be
adjusted as set forth in Section 5.

 

5.
ADDITIONAL RENT

 

5.1          Consumer
Price Index Rental Increase

 

The capitalized terms
used herein are defined below. Effective on each Adjustment Date, Monthly Rent
shall be increased by the lesser of (a) twelve percent (12%) or (b) the
increases in the CPI with the percentage increase to be determined by
multiplying the Initial Monthly Rent by a fraction, the numerator of which
shall be the Variable Index and the denominator of which shall be the Base
Index. The product thus obtained shall be payable in advance in consecutive
monthly installments on the first day of each month until the next Adjustment
Date, or the expiration of the term, as the case may be. Notwithstanding
anything contained herein to the contrary, in no event shall the new Monthly
Rent be less than the previous Monthly Rent. 
Landlord’s delay or the failure of Landlord, beyond commencement of any
Adjustment Date, in computing or billing for these adjustments will not impair
the continuing obligation of Tenant to pay the rent adjustments. In applying
the foregoing formula for Month Rent adjustments, the following terms shall
have the following meanings:

 

5.1.1        “Adjustment
Date” shall mean, as the case may require, the first day of the sixth (6th),
eleventh (11th), sixteenth (16th), twenty-first (21st),
twenty-sixth (26th), and thirty-first (31st) Lease Years
(and the first day of each option period, if Tenant exercises its options to
extend the term of the Lease pursuant to Sections 3.2, 3.3 and 3.4); provided,
however, if the Commencement Date is other than the first day of the month,
then “Adjustment Date” shall mean, as the case may require, the first day of
the first month occurring after the sixth (6th), eleventh (11th),
sixteenth (16th), twenty-first (21st), twenty-sixth (26th),
and thirty-first (31st) Lease Years (and the first day of each
option period, if Tenant exercises its options to extend the term of the Lease
pursuant to Sections 3.2, 3.3 and 3.4).

 

5.1.2        “Base
Index” shall mean the CPI for the first month of the first Lease Year.

 

4

 

5.1.3        “CPI”
shall mean the Consumer Price Index for All Urban Consumers, All Items, u.s.a.
Area, 1982-84=100, as published by the Bureau of Labor Statistics, United
States Department of Labor (U.S. City Average. 
If such index is discontinued, CPI shall then mean the most nearly
comparable index published by the Bureau of Labor Statistics or other official
agency of the United States Government as determined by Landlord.

 

5.1.4        “Initial
Monthly Rent” shall mean the Monthly Rent payable by Tenant for the first full calendar
month of the first Lease Year.

 

5.1.5        “Variable
Index” shall mean the CPI for the month in which the Adjustment Date occurs.

 

6. SUBSTITUTE RENT AND INCREASES

 

This Section was deleted intentionally.

 

7. SECURITY DEPOSIT

 

This Section was deleted intentionally.

 

8. USE OF THE PREMISES

 

Tenant shall use the
Premises only for a family entertainment and amusement center and uses
consistent therewith and no other uses without the prior written consent of
Landlord which consent shall not be unreasonably withheld or delayed. Tenant
has satisfied itself, and represents to Landlord, that such use is lawful and
conforms to all applicable zoning and other use restrictions and regulations
applicable to the Premises. Tenant shall, at Tenant’s expense, comply promptly
with all applicable statutes, ordinances, rules, regulations, orders, covenants
and restrictions of record, and requirements in effect during the term or any
part of the term hereof, regulating the use by Tenant of the Premises,
including, without limitation, the obligation at Tenant’s cost, to alter,
maintain, or restore the Premises in compliance and conformity with all laws
relating to the condition, use, or occupancy of the Premises during the term
(including any and all requirements as set forth in the Americans with
Disabilities Act) and regardless of (i) whether such laws require structural or
non-structural improvements, (ii) whether the improvements were foreseen or
unforeseen, and (iii) the period of time remaining in the term. Tenant shall
not perform any acts or carry on any practices which may injure the Premises.

 

5

 

9. PROPERTY TAXES, ASSESSMENTS AND UTILITIES

 

9.1           Tenant’s
Required Payments

 

Tenant shall (i) pay at
least fifteen (15) days before delinquency and as additional rent, all Property
Taxes and Other Taxes (as such terms are defined herein) that accrue during or
are otherwise allocable to the term of this Lease; and (ii) concurrently
provide Landlord with evidence of payment thereof. Property Taxes and Other
Taxes together are referred to herein as “Taxes.” Tenant shall provide Landlord
with proof of payment of Taxes as soon as reasonably possible.

 

9.1.1        “Property
Taxes” shall mean all taxes, assessments, excises, levies, fees, and charges (and
any tax, assessment, excise, levy, fee, or charge levied wholly or partly in
lieu thereof or as a substitute therefor or as an addition thereto) of every
kind and description, general or special, ordinary or extraordinary, foreseen or
unforeseen, secured or unsecured, whether or not now customary or within the
contemplation of Landlord and Tenant, that are levied, assessed, charged,
confirmed, or imposed on or against, or otherwise with respect to, the Premises
or any part thereof or any personal property used in connection with the
Premises.  It is the intention of
Landlord and Tenant that all new and increased taxes, assessments, levies,
fees, and charges, and all similar taxes, assessments, levies, fees and charges
be included within the definition of property Taxes for the purpose of this
Lease.

 

9.1.2        “Other
Taxes” shall mean all taxes, assessments, excises, levies, fees, and charges
(including, without limitation, charges relating to the cost of providing
facilities or services, and charges relating to documents or instruments of
record effecting or encumbering the Premises), whether or not now customary or
within the contemplation of Landlord and Tenant, that are levied, assessed,
charged, confirmed, or imposed upon, or measured by, or reasonably attributable
to (a) the Premises; (b) the cost or value or Tenant’s furniture, fixtures,
equipment, or personal property located in the Premises or the cost or value of
any leasehold improvements made in or to the Premises by or for Tenant,
regardless of whether title to such improvements is vested in Tenant or
Landlord; (c) rents payable under the Lease, including, if applicable, Property
Taxes, Other Taxes, insurance, maintenance, and other costs incurred

 

6

 

by Tenant; (d) the
possession, leasing, operation, management, maintenance, alteration, repair,
use, or occupancy by Tenant of the Premises; and (e) this transaction or any
document to which Tenant is a party creating or transferring an interest or an
estate in the Premises.

 

9.2           Payments
Not Required by Tenant

 

Tenant shall not be
required to pay any municipal, county, state, or federal income or franchise
taxes of Landlord, or any municipal, county, state, or federal estate,
succession, inheritance, or transfer taxes of Landlord.

 

9.3           Assessments

 

If any assessment for a
capital improvement made by public or governmental authority shall be levied or
assessed against the Premises, and the assessment is payable either in a lump
sum or on an installment basis, then Tenant shall have the right to elect the
basis of payment; provided, however, throughout the entire term of this Lease,
Tenant shall pay all assessments that accrue during or are otherwise allocable
to the term of this Lease.

 

9.4           Utility
Payments

 

Tenant shall promptly pay when due all charges for water, gas,
electricity, and all other utilities furnished to or used upon the Premises,
including all charges for installation, termination, and relocations of such
services.

 

9.5           Tenant’s
Right to Contest Utility Charges, Contest Taxes and Seek Reduction of Assessed
Valuation of the Premises

 

Tenant, at Tenant’s sole cost and expense, shall have the right, at any
time, to seek a reduction in the assessed valuation of the Premises or to
contest any taxes or utility charges that are to be paid by Tenant; provided,
however, Tenant shall (i) give Landlord written notice of any such intention to
contest at least thirty (30) days before any delinquency could occur; (ii) indemnify
and hold Landlord harmless from all liability on account of such contest; (iii)
take such action as is necessary to remove the effect of any lien which
attached to the Premises or the improvements thereon due to such contest, or in
lieu thereof, at Landlord’s election, furnish Landlord with adequate security
for the amount of the Taxes due plus interest and penalties; and (iv) in the
event of a final determination adverse to Tenant, prior to enforcement,
foreclosure or sale, pay the amount involved together with all penalties,
fines, interest, costs, and expenses which may have accrued. Tenant may use any
means allowed by statute to protest Taxes or utility charges as defined in this
Section 9 as long as Tenant remain current as to all other terms and conditions
of this Lease. If the protested Taxes have not been paid, then at Landlord’s
request Tenant shall furnish to Landlord a surety bond issued by an insurance
company

 

7

 

qualified to do business in the state where the
Premises are located.  The amount of bond
shall equal one hundred ten percent (110%) of the total amount of taxes in
dispute. The bond shall hold Landlord and the Premises harmless from any damage
arising out of the proceeding or contest and shall insure the payment of any
judgment that may be rendered. If Tenant seeks a reduction or contests any
Taxes or utility charges, the failure on Tenant’s part to pay the Taxes or
utility charges shall not constitute a default as long as Tenant complies with
the provisions of this Section.

 

9.6           Landlord
Not Required to Join in Proceedings or Contest Brought by Tenant

 

Landlord shall not be required to join in any proceeding or contest
brought by Tenant unless the provisions of the law require that the proceeding
or contest be brought by or in the name of Landlord or the owner of the
Premises. In that case, Landlord shall join in the proceeding or contest or
permit it to be brought in Landlord’s name as long as Landlord is not required
to bear any cost. Tenant, on final determination of the proceeding or contest,
shall immediately pay or discharge any decision or judgment rendered, together
with all costs, charges, interest, and penalties incidental to the decision or
judgment.

 

9.7           Tax
Period and Adjustment of Taxes

 

For the purpose of this Lease, the calculation of Taxes payable by
Tenant for any particular Lease Year shall be based upon the Taxes actually due
and payable in accordance with applicable law during such Lease year even
though such Taxes may relate to a different period of time (such as the taxing
authority’s fiscal year). [For example, if Taxes are payable on or before
September 30 of each year with respect to the fiscal period beginning on the
immediately preceding July 1 and ending on the immediately succeeding June 30,
then, for all purposes of this Lease, Taxes for Lease Year “X” refers to the
Taxes due and payable on September 30 of such Lease Year even though the same
may relate in part to both such Lease Year and the succeeding Lease Year.] The
parties hereby understand that, notwithstanding the foregoing, Taxes payable by
Tenant in accordance with the terms of this Lease shall be appropriately
adjusted for any partial Lease Year.

 

10. 
BUILDING AND IMPROVEMENTS; TRADE FIXTURES

 

10.1         Building
and Improvements

 

The building and any improvements in, on, or about the Premises and all
additions, alterations, modifications, and replacements thereto and thereof at
all times during the term of this Lease shall be the property of Tenant. During
the term of this Lease and any extension term thereof, provided Tenant is not
in default, Tenant shall have the right to sell, transfer and convey any or all
of Tenant’s Property without Landlord’s consent. All right, title, and interest
of Tenant therein shall

 

8

 

cease, expire and vest exclusively in Landlord on the
expiration or any termination of this Lease.

 

10.2         Depreciation
and Investment Tax Credit

 

During the term of this
Lease, Tenant alone shall be able to claim depreciation and investment tax
credit for taxation purposes (or to permits subtenants the right to such
benefits) on any building improvements and fixtures and any changes, additions,
and alterations therein and thereto and any replacements thereof.

 

10.3         Trade
Fixtures

 

Notwithstanding anything contained herein to the contrary, Landlord
acknowledges and agrees that the furniture, trade, fixtures, equipment,
machinery, furnishings, signs, and other articles of personal property
(collectively, “Trade Fixtures”) now located or hereafter placed or installed
in, on, or about the Premises shall be and remain the property of Tenant.
Tenant shall have the right, at any time during the term, at Tenant’s sole cost
and expense, to install and affix in, to, or on the Premises, such Trade
Fixtures for use in Tenant’s trade or business as Tenant, in its sole and
absolute discretion, may deem advisable. Trade Fixtures that can be removed
without structural damage to the Premises or any building or improvements
thereon shall remain the property of Tenant and may be removed or replaced by
Tenant at any time or times prior to the expiration or earlier termination of
this Lease.  In the event of such
removal, any damage occasioned to the Premises shall be fully repaired at the
sole cost and expense of Tenant.

 

10.4         Removal
of Trade Fixtures

 

At the expiration or
earlier termination of this Lease, provided Tenant is not in default, Tenant
may remove (i) Tenant’s movable Trade Fixtures and other personal property not
permanently affixed to the Premises; and (ii) the alterations and additions and
signs made by Tenant to the Premises (collectively, “Tenant’s Property”). All
leasehold improvements, alterations and additions to the Premises, HVAC
equipment, non-removable lighting fixtures, electric switch boxes, plumbing,
restroom fixtures, floor coverings, and other like items which are permanently
affixed to the Premises, more commonly defined as fixtures, shall become the
property of the Landlord immediately following an uncured default, the
expiration, or any termination of this Lease. Any of Tenant’s Property not
removed within ten (10) days following the expiration or earlier termination of
this Lease shall be deemed abandoned by Tenant and, at Landlord’s option, shall
become the property of Landlord as owner of the real property to which they are
affixed. Tenant, at its sole cost and expense, immediately shall repair any
damage occasioned to the Premises by the removal of Tenant’s Property. Upon the
expiration or earlier termination of this Lease, Tenant shall leave the
Premises in a neat and clean condition, free of debris, normal wear and tear
excepted.

 

9

 

10.5         Financing
of Tenant’s Property

 

For purposes of Tenant’s financing or leasing of Tenant’s Property,
Landlord covenants and agrees that to the extent that such property is leased
or financed, then any interest of Landlord in the same shall be subject,
subordinate, and inferior to any lien(s) (and all renewals, extension, or
replacements thereof) now or hereafter imposed by Tenant upon Tenant’s
Property.  Landlord agrees to execute
such reasonable and necessary documents to confirm Landlord’s foregoing
covenant in favor of Tenant’s lien holders or mortgagees.

 

11.  MAINTENANCE
OF THE PREMISES

 

11.1         Obligation
to Maintain the Premises

 

During the term of this Lease, Tenant shall, at its own expense, keep
and maintain the entire Premises in good order and repair, including, but not
limited to, the interior, exterior, foundations, floors, walls, roof, and
structure of the building; and the sidewalks, curbs, walls, trash enclosures,
landscaping with sprinkler system (if installed), light standards, and parking
areas which are a part of the Premises. 
Tenant shall make such repairs and replacements as may be necessary,
regardless of whether the benefit of such repair or replacement extends beyond
the term of this Lease. Subject to the provisions of Section 10, the premises,
including all improvements, shall be returned to Landlord at the termination or
expiration of this Lease in good condition, ordinary wear excepted.  Notwithstanding the foregoing, in the event
of destruction of the Premises by fire or casualty, or condemnation, the condition
of the Premises upon termination of this Lease shall be governed by section 14
or Section 15, respectively.

 

11.2         Obligation
to Keep the Premises Clear

 

Tenant shall keep the Premises, including sidewalks adjacent to the
Premises and loading area allocated for the use of Tenant, clean and free from
rubbish and dirt at all times. Tenant shall store all trash and garbage within
the Premises and arrange for regular pickup and cartage of such trash and
garbage at Tenant’s expense.

 

12.  REPAIRS
AND ALTERATIONS

 

12.1         Right to
Make Alterations

 

At all times during the term of this Lease, except as provided in
Section 17, Tenant shall have the right to make alterations, additions, and
improvements to the interior or exterior of the building. Any alterations,
additions, and improvements which may be made or installed by Tenant, to the
extent it is in existence at the termination or expiration of the Lease, shall
remain upon the Premises and, at the termination or expiration of this Lease,
shall be surrendered with the Premises to Landlord. Any alteration, addition,
or improvement shall be

 

10

 

accomplished by
Tenant in a good workmanlike manner, in conformity with applicable laws and
regulations.  Upon completion of any such
work, Tenant shall provide to Landlord “as-built” plans, building permits,
governmental inspection reports and all other required governmental approvals,
and proof of payment of all labor and materials. Subject to Section 12.2,
Tenant shall pay when due all claims for such labor and materials and shall
give Landlord at least ten (10) days' prior written notice of the commencement
of any such work.  Landlord may enter
upon the Premises, in such case, for the purpose of posting appropriate
notices, including, but not limited to, notices of non-responsibility.

 

12.2         Tenant
Shall Not Render Premises Liable For Any Lien

 

Tenant shall have no right, authority, or power to bind Landlord, or
any interest of Landlord in the Premises, nor to render the Premises liable for
any lien or right of lien for the payment of any claim for labor, material, or
for any charge or expense incurred to maintain, to repair, or to make
alterations, additions, and improvements to the Premises. Tenant shall in no
way be considered the agent of Landlord in the construction, erection,
modification, repair, or alternation of the Premises. Notwithstanding the
above, Tenant shall have the right to contest the legality or validity of any
lien or claim filed against the Premises. 
No contest shall be carried on or maintained by Tenant after the time
limits in the sale notice of the Premises for any such lien or claim unless
Tenant (i) shall have duly paid the amount involved under protest; (ii) shall
have procured and recorded a lien release bond from a bonding company acceptable
to Landlord in an amount not less than one and one-half (1-1/2) times the
amount involved; or (iii) shall have procured a stay of all proceedings to
enforce foreclosure or collection. Upon a final adverse determination of any
contest, Tenant shall pay and discharge the amount of the lien or claim
determined to be due, together with any penalties, fines, interest, cost, and
expense which may have accrued, and shall provide proof of payment to Landlord.

 

13. 
INDEMNITY AND INSURANCE

 

13.1         Indemnification

 

Tenant shall indemnify, defend, and protect Landlord, and hold Landlord
harmless from any and all loss, cost, damage, expense, liability (including,
without limitation, court costs and reasonable attorneys’ fees) incurred in
connection with or arising at any time and from any cause whatsoever in or
about the Premises, other than damages proximately caused by reason of the
negligence or willful misconduct of Landlord or its agents and employees,
including, without limiting the generality of the foregoing:  (i) any default by Tenant in the observance
or performance of any of the terms, covenants, or conditions of this Lease on
Tenant’s part to be observed or performed; (ii) the use or occupancy of the
Premises by Tenant or any person claiming by,

 

11

 

through, or under
Tenant; (iii) the condition of the Premises or any occurrence or happening on
the Premises from any cause whatsoever, or (iv) any acts, omissions, or
negligence of Tenant or any person claiming by, through, or under Tenant, or of
the contractors, agents, servants, employees, visitors, or licensees of Tenant
or any such person, in, on, or about the Premises, either prior to or during
the Lease term (including, without limitation, any holdovers in connection
therewith), including, without limitation, any acts, omissions, or negligence
in the making or performance of any alterations. Tenant further agrees to
indemnify and hold harmless Landlord, Landlord’s agents, and the landlord or
landlords under all ground or underlying leases, from the against any and all
loss, cost, liability, damage, and expense (including, without limitation,
reasonable attorneys’ fees) incurred in connection with or arising from any
claims by any persons by reason of injury to persons or damage to property
occasioned by any use, occupancy, condition, occurrence, happening, act,
omission, or negligence referred to in the preceding sentence. The provisions
of this Section shall survive the expiration or sooner termination of this
Lease with respect to any claims or liability occurring prior to such
expiration or termination, and shall not be limited by reason of any insurance
carried by Landlord and Tenant.

 

13.2         Insurance
Company Requirement

 

Insurance required by this Lease shall be issued by companies holding a
general policyholder’s rating of at lease A as set forth in the most current
issue of Best’s Insurance Guide and authorized to do business in the
state in which the Premises are located. If this publication is discontinued,
then another insurance rating guide or service generally recognized as
authoritative shall be substituted by Landlord.

 

13.3         Insurance
Certificate Requirements

 

13.3.1      Tenant
shall deliver to Landlord certificates evidencing the existence and amounts of
the insurance with loss payable clauses as required herein.  No policy shall be cancelable or subject to
reduction of coverage or other modification except after thirty (30) days' prior
written notice to Landlord.

 

13.3.2      The
insurance required to be maintained herein may be carried under blanket
policies. The insurance shall provide for payment of loss jointly to Landlord
and Tenant. A stipulated value or agreed amount endorsement deleting the co-insurance
provision to the building policy shall be procured.

 

12

 

13.4         Minimum
Acceptable Insurance Coverage Requirements

 

13.4.1      Tenant
shall, at Tenant’s expense, obtain and keep in full force during the term of
this Lease a policy of combined single limit bodily injury and property damage
insurance insuring Tenant (with Landlord as an additional insured) against any
liability arising out of the ownership, use, occupancy, or maintenance of the
Premises and all of its appurtenant areas. 
The insurance shall be in an amount not less than Two Million Dollars
($2,000,000) per occurrence.  The policy shall
provide blanket contractual liability coverage. 
However, the limits of the insurance shall not limit the liability of
Tenant.  In addition, Tenant shall, at
Tenant’s expense, obtain and keep in full force during the term of this Lease
an umbrella liability policy in an amount not less than Two Million Dollars ($2,000,000).

 

13.4.2      Tenant
shall, at Tenant’s expense, obtain and keep in force during the term of this Lease
a policy or policies of insurance covering loss or damage to the Premises.  The insurance shall be in an amount not less
than the replacement value of the building(s) less slab, foundation, supports
and other customarily excluded improvements against all perils of fire, extended
coverage, vandalism, malicious mischief, and special extended perils (“All Risks,”
as such term is used in the insurance industry). The policy shall include a
code upgrade endorsement.  In addition,
Tenant shall, at Tenant’s expense, obtain and keep in force during the term of
this Lease a policy or policies of insurance covering loss or damage due to
earthquake and/or flood.

 

13.4.3      Tenant
shall also obtain and keep in force during the term of this Lease a policy of Business
Interruption insurance covering a period of one (1) year. This insurance shall cover
all real estate taxes and insurance costs for the same period in addition to
one (1) years lease rent amount.

 

13.4.4      Tenant
shall also obtain and keep in force during the term of this Lease a worker’s compensation
policy, insuring against and satisfying Tenant’s obligations and liabilities under
the worker’s compensation laws of the state in which the Premises are located, including
Employer’s Liability insurance, in an

 

13

 

amount of not less than
One Million Dollars ($1,000,000).

 

13.5         Additional
Insureds

 

Tenant shall name as additional Insureds or loss payees, as the case
may be, on all insurance, Landlord, Landlord’s successor(s), assignee(s),
nominee(s), nominator(s), corporate and individual general partners, and agents
with an insurable interest as follows:

 

REALTY INCOME
CORPORATION, ITS OFFICERS, DIRECTORS, AND ALL SUCCESSOR(S), ASSIGNEE(S),
SUBSIDIARIES, CORPORATIONS, PARTNERSHIPS, PROPRIETOR-SHIPS, JOINT VENTURES,
FIRMS, AND INDIVIDUALS AS HERETOFORE, NOW, OR HEREAFTER CONSTITUTED ON WHICH
THE NAMED INSURED HAS THE RESPONSIBILITY FOR PLACING INSURANCE AND FOR WHICH
SIMILAR COVERAGE IS NOT OTHERWISE MORE SPECIFICALLY PROVIDED.

 

13.6         Mortgage
Endorsement

 

If requested by Landlord, the policies of insurance required to be
maintained hereunder shall bear a standard first mortgage endorsement in favor
of any holder or holders of a first mortgage lien or security interest in the
property with loss payable to such holder or holders as their interests may
appear.

 

13.7         Renewals,
Lapses or Deficiencies

 

Tenant shall, at least thirty (30) days prior to the expiration of such
policies, furnish Landlord with renewal certificates of insurance or renewal
binders.  Should Tenant fail to provide
to Landlord the renewals or renewal binders, or in the event of a lapse or
deficiency of any insurance coverage specified herein for any reason, Landlord
may immediately replace the deficient insurance coverage with a policy of
insurance covering the Premises of the type and in the limits set forth
above.  Upon written notice from Landlord
of the placement of insurance, Tenant shall immediately pay to Landlord, as
additional rent, an amount equal to the total cost of premiums and expense of
such insurance placement. Tenant shall not do or permit to be done anything,
which shall invalidate the insurance policies. 
If Tenant does or permits to be done anything which shall increase the
cost of the insurance policies, then upon Landlord’s demand Tenant shall
immediately pay to Landlord, as additional rent, an amount equal to the
additional premiums attributable to any acts or omissions or operations of
Tenant causing the increase in the cost of insurance.

 

14.  PARTIAL
AND TOTAL DESTRUCTION OF THE PREMISES

 

In the event any part or all of the Premises shall at any time during
the term of this Lease be damaged or destroyed,

 

14

 

regardless of
cause, Tenant shall give prompt notice to Landlord. Tenant shall repair and
restore the Premises to its original condition, including buildings and all
other improvements on the Premises, as soon as circumstances permit. Tenant
shall hold Landlord free and harmless from any and all liability of any nature
whatsoever resulting from such damage or destruction, and such repairs and
restoration. Tenant, and not Landlord, shall be responsible for paying for any
cost of repairs and restoration in excess of the proceeds available from
insurance policies procured by Tenant. 
Tenant is not entitled to any rent abatement during or resulting from
any disturbance on or partial or total destruction of the Premises.

 

15.  CONDEMNATION

 

15.1         Condemnation
Damages

 

In the event of the taking or conveyance of the whole or any part of
the Premises by reason of condemnation by any public or quasi-public body,
Landlord and Tenant shall represent themselves independently in seeking damages
before the condemning body.  Each party
shall be entitled to the amount awarded respectively to each.  Landlord shall not make a claim in such
proceedings for any of the following:

 

15.1.1      A
value attributable to Tenant’s remaining leasehold interest in the building and
improvements as calculated by dividing the number of months remaining on the
Lease by the remaining useful economic life of the building and improvements
(in months) as determined by an appraiser, acceptable to Landlord and Tenant,
which fraction is multiplied by the value of the building and improvements, as
determined by an appraiser, acceptable to Landlord and Tenant; and

 

15.1.2      Any
portion of the award attributable to Tenant’s furniture, fixtures, and
equipment installed in the Premises in accordance with this Lease.

 

15.2         Termination
of Lease Due to Condemnation

 

In the event that the Condemnation materially adversely affects the use
of the Premises as defined in Section 8, Tenant may terminate the Lease by
giving Landlord sixty (60) days, written notice of its intention to terminate
the Lease after receiving notice of the Condemnation from the condemning
authority. The effective date of the termination shall be the actual date of
such taking.  In the event of
termination, the rent for the last month of Tenant’s occupancy shall be
prorated and Landlord shall refund to Tenant any rent paid in advance and
Tenant shall thereupon be released from its obligation to pay rent.

 

15

 

16. 
ASSIGNMENT AND SUBLETTING

 

16.1         Tenant’s
Right of Assignment and Subletting

 

Tenant shall not voluntarily or by operation of law assign or encumber
its interest in this Lease or in the Premises, or sublease all or any part of
the Premises, or allow any other person or entity to occupy or use any part of
the Premises, without first obtaining the written consent of Landlord, which
consent shall not be unreasonably withheld or delayed, except that the consent
of Landlord shall not be required to transfer, sell, assign or sublease
(collectively “Transfer”) all or any portion of this Lease or the Premises to
an Affiliate of Tenant; provided, however, that in each instance, Tenant shall
notify Landlord of such Transfer and shall remain liable under the terms of the
Lease.  An “Affiliate” shall mean any
person or entity which directly or indirectly, through one or more
intermediaries controls or is controlled by, or is under common control with
Tenant. For purposes of this definition, the term “control” with mean the
possession, directly or indirectly, or the power to direct management and
policies of a person or entity, whether through the ownership of voting
securities or equity interests, by contract, or otherwise. Any assignment,
encumbrance, or sublease without Landlord’s consent shall be voidable and, at
Landlord’s election, shall constitute a default.  It shall not be unreasonable for Landlord to
withhold its consent to any proposed assignment or subletting if the proposed
transferee does not meet certain criteria, including, but not limited to, the
transferee’s financial condition, the nature, quality, and character of the
transferee, the identity or business character of the transferee, the nature of
the use and occupancy and the transferee’s business experience.

 

16.2         Landlord’s
Option to Preserve Subtenancies

 

In the event of Tenant’s surrender of this Lease or the termination of
this Lease in any other manner, Landlord may, at its option, either terminate
any or all subtenancies or succeed to the interest of Tenant as sublandlord
thereunder.  No merger shall result from
Tenant’s sublease of the Premises under this Section, Tenant’s surrender of
this Lease, or the termination of this Lease in any other manner.

 

16.3         Tenant’s
Assignment of All Rent from Subletting as Security for Tenant’s Obligations

 

Tenant immediately and irrevocably assigns to Landlord, as security for
Tenant’s obligations under this Lease, all rent from any subletting of all or a
part of the premises as permitted by this Lease.  In the event of a default by Tenant,
Landlord, as assignee and as attorney-in-fact for Tenant, or a receiver for
Tenant appointed on Landlord’s application, may collect the rent and apply it
toward Tenant’s obligations under this Lease.

 

16

 

16.4         Continuing
Obligation of Tenant

 

No transfer permitted by this Section 16 shall release Tenant or change
Tenant’s primary liability to pay the rent and to perform all other obligations
of Tenant under this Lease. Landlord’s acceptance of rent from any other person
is not a waiver of any provision of this Section.  Consent to one transfer is not a consent to
any subsequent transfer.  If Tenant’s
transferee defaults under this Lease, Landlord may proceed directly against
Tenant without pursuing remedies against the transferee. Landlord may consent
to subsequent assignments or modifications of this Lease by Tenant’s
transferee, without notifying Tenant or obtaining its consent.  Such action shall not relieve Tenant’s
liability under this Lease.

 

16.5         Fees
and Costs with Regard to Proposed Assignment or Sublease

 

If Tenant requests Landlord to consent to a proposed assignment or
sublease, Tenant shall pay to Landlord, whether or not consent is ultimately
given, Landlord’s reasonable attorneys’ fees and other costs incurred in
connection with each such request.

 

16.6         Landlord’s
Right of Assignment

 

Landlord shall be free at all times, without need of consent or
approval by Tenant, to assign its interest in this Lease and/or to convey fee
title to the Premises. Each conveyance by Landlord of Landlord’s interest in
the Lease or the Premises prior to expiration or termination hereof shall be
subject to this Lease and shall relieve the grantor of any further obligations
or liability as Landlord, and Tenant shall look solely to Landlord’s successor
in interest for all future obligations of Landlord.  Tenant hereby agrees to attorn to Landlord’s
successors in interest, whether such interest is acquired by sale, transfer,
foreclosure, deed in lieu of foreclosure, or otherwise. The term “Landlord” as
used in this Lease, so far as covenants and obligations on the part of Landlord
are concerned, shall be limited to mean and include only the owner at the time
in question of the fee title of the Premises. Without further agreement, the
transferee of such title shall be deemed to have assumed and agreed to observe
and perform any and all obligations of Landlord hereunder during its ownership
of the Premises.

 

17.  DEFAULT
AND TERMINATION

 

17.1         Event
of Default

 

The occurrence of any of the following events (each an “Event of
Default”) shall constitute a default by Tenant:

 

17.1.1      Failure
by Tenant to pay rent when due. Notwithstanding the foregoing, or any other
provision in this Lease to the contrary, for not than two *2) occasions during
any twelve (12)

 

17

 

month period of the term
of this Lease, as extended, if any rental is not received when due, Landlord
shall notify Tenant, in writing, and Tenant shall have ten (10) days from the
date of receipt of Landlord’s notice to cure any such failure to pay
rental.  If rental is not received within
ten (10) day period following Landlord’s notice, then Tenant shall be in
default.

 

17.1.2      Failure
by Tenant to perform or comply with any provision of this Lease (other than as
set forth in Subsection 17.1.1) if the failure is not cured within thirty (30)
days after notice has been given to Tenant. If, however, the failure cannot
reasonably be cured within the cure period, Tenant shall not be in default of
this Lease if Tenant commences to cure the failure within the cure period and
diligently and in good faith continues to cure the failure.

 

17.1.3      A
default by Tenant under any other lease in which Landlord is the landlord and
Tenant is the tenant.

 

17.1.4      To
the extent permitted by law, a general assignment by Tenant or any guarantor of
the Lease for the benefit of creditors, or the filing by or against Tenant or
any guarantor of any proceeding under any insolvency or bankruptcy law, unless
in the case of a proceeding filed against Tenant or any guarantor the same is
dismissed within sixty (60) days, or the appointment of a trustee or receiver
to take possession of all or substantially all of the assets of Tenant or any
guarantor, unless possession is restored to Tenant or such guarantor within
(30) days, or any execution or other judicially authorized seizure of all or substantially
all of Tenant’s assets located upon the Premises or of Tenant’s interest in this
Lease, unless such seizure is discharged within thirty (30) days, or any execution
or other judicially authorized seizure of all or substantially all of Tenant’s
assets located upon the Premises or of Tenant’s interest in this Lease, unless
such seizure is discharged within thirty (30) days.

 

Any notice delivered pursuant to this Section 17.1 shall be in lieu of,
and not in addition to, any notice that otherwise may be required by law.

 

18

 

17.2         Landlord’s
Remedies

 

Landlord shall have any one or more of the following remedies after the
occurrence of a default by Tenant.  These
remedies are not exclusive; they are cumulative in addition to any remedies now
or later allowed by law, in equity, or otherwise:

 

17.2.1      Terminate
this Lease by giving written notice of termination to Tenant, in which event
Tenant immediately shall surrender the Premises to Landlord.  If Tenant fails to so surrender the Premises,
then Landlord, without prejudice to any other remedy it has for possession of
the Premises or arrearages in rent or other damages, may re-enter and take
possession of the Premises and expel or remove Tenant and any other person or
entity occupying the Premises or any part thereof, without being liable for any
damages, whether caused by negligence of Landlord or otherwise.

 

17.2.2      No
act by Landlord other than giving notice of termination to Tenant shall
terminate this Lease. Acts of maintenance, efforts to relet the Premises, or
the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest
under this Lease shall not constitute a termination of this Lease. On
termination of the Lease, Landlord shall have the right to recover from Tenant:

 

(i)            The
worth at the time of the award of the unpaid rent that had been earned at the
time of termination of this Lease; and

 

(ii)           The
worth at the time of the award of the amount by which the unpaid rent that
would have been earned after the date of termination of this Lease until the
time of award exceeds the amount of the loss of rent that Tenant proves
reasonably could have been avoided; and

 

(iii)          The
worth at the time of the award of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of the loss of
rent that Tenant proves reasonably could have been avoided; and

 

(iv)          Any
other amount, including, without limitation, attorneys’ fees and court costs,
necessary to compensate Landlord for all detriment proximately caused by Tenant’s
default.

 

19

 

The phrase “worth at the
time of the award” as used in clauses (i) and (ii) above is to be computed by
allowing interest at the rate of ten percent (10%) per annum, but not to exceed
the then legal rate of interest.  The
same phrase as used in clause (iii) above is to be computed by discounting the
amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of the award, plus one percent (1%). 
The term “rent” as used in this Section 17.2.2 means the Monthly Rent
and all other sums payable by Tenant hereunder, including, without limitation,
Taxes and insurance.

 

17.2.3      Landlord
may re-enter and take possession of the Premises without terminating this Lease
and without being liable for any damages, whether caused by the negligence of
Landlord or otherwise.  Landlord may relet
the Premises, or any part of them, to third parties, but has no obligation to
do so.  Landlord may relet the Premises
on whatever terms and conditions Landlord, in its sole discretion, deems
advisable. Reletting can be for a period shorter or longer than the remaining
term of this Lease.  Landlord’s action
under this Subsection is not considered an acceptance of Tenant’s surrender of
the Premises unless Landlord so notifies Tenant in writing.  Tenant shall be immediately liable to
Landlord for all costs Landlord incurs in reletting the Premises, including
brokers’ commissions, expenses of remodeling the Premises required by the
reletting, and like costs.  Tenant shall
pay to Landlord the rent due under this Lease on the dates the rent is due,
less the rent Landlord receives from any reletting.

 

If Landlord elects to
relet the Premises without terminating this Lease, any rent received will be
applied to the account of Tenant, not to exceed Tenant’s total indebtedness to
Landlord; no reletting by Landlord is considered to be for its own account
unless Landlord has notified Tenant in writing that the Lease has been
terminated.  If Landlord elects to relet
the Premises, rent that Landlord receives from reletting will be applied to the
payment of: (i) first, any indebtedness from Tenant to Landlord other than rent
due from Tenant; (ii) second, all costs, including maintenance, incurred by
Landlord in reletting; and (iii)

 

20

 

third, rent due and
unpaid under the Lease.  After deducting
the payments referred to in this Subsection, any sum remaining from the rent
Landlord receives from reletting will be held by Landlord and applied in
payment of future rent as rent becomes due under this Lease.  If, on the date rent is due under this Lease,
the rent received from the reletting is less than the rent due on that date,
Tenant will pay to Landlord, in addition to the remaining rent due, all costs,
including maintenance, Landlord incurred in reletting which remain after applying
the rent received from the reletting. Tenant shall have no right to or interest
in the rent or other consideration received by Landlord from reletting to the
extent it exceeds Tenant’s total indebtedness to Landlord.

 

17.2.4      Re-enter
the Premises without terminating this Lease and without being liable for any
damages, whether caused by the negligence of Landlord or otherwise, and do
whatever Tenant is obligated to do under the terms of this Lease. The expenses
incurred by Landlord in affecting compliance with Tenant’s obligations under
this Lease immediately shall become due and payable to Landlord as additional
rent.

 

17.2.5      In
all events, Tenant is liable for all damages of whatever kind of nature, direct
or indirect, suffered by Landlord as a result of the occurrence of an Event of
Default.  If Tenant fails to pay Landlord
in a prompt manner for the damages suffered, Landlord may pursue a monetary recovery
from Tenant.  Included among these damages
are all expenses incurred by Landlord in repossessing the Premises (including,
but not limited to, increased insurance premiums resulting from Tenant’s
vacancy), all expenses incurred by Landlord in reletting the Premises (including, but not limited to, those
incurred for advertisements, brokerage fees, repairs, remodeling, and
replacements), all concessions granted to a new tenant on a reletting, all
losses incurred by Landlord as a result of Tenant’s default (including, but not
limited to, any unamortized commissions paid in connection with this Lease), a
reasonable allowance for Landlord’s administrative costs attributable to Tenant’s
default, and all attorneys’ fees incurred by Landlord in enforcing any of
Landlord’s rights or remedies against Tenant.

 

21

 

17.2.6      Pursuit
of any of the foregoing remedies does not constitute an irrevocable election of
remedies nor preclude pursuit of any other remedy provided elsewhere in this
Lease or by applicable law, and none is exclusive of another unless so provided
in this Lease or by applicable law. 
Likewise, forbearance by Landlord to enforce one or more of the remedies
available to it on an Event of Default does not constitute a waiver of that
default or of the right to exercise that remedy later or of any rent, damages,
or other amounts due to Landlord hereunder.

 

17.2.7      Whether
or not Landlord elects to terminate this Lease or Tenant’s right to possession
of the Premises on account of any default by Tenant, Landlord shall have all
rights and remedies at law or in equity, including, but not limited to, the
right to re-enter the Premises and, to the maximum extent provided by law,
Landlord shall have the right to terminate any and all subleases, licenses,
concessions, or other consensual arrangements for possession entered into by
Tenant and affecting the Premises or, in Landlord’s sole discretion, may
succeed to Tenant’s interest in such subleases, licenses, concessions, or
arrangements.  In the event of Landlord’s
election to succeed to Tenant’s interest in any such subleases, licenses, concessions,
or arrangements, Tenant shall have no further right to or interest in the rent
or other consideration receivable thereunder as of the date of notice by
Landlord of such election.

 

17.3         Late
Charge

 

If Tenant fails to pay when due any payment of rent or other charges
which Tenant is obligated to pay to Landlord under this Lease, there shall be a
late charge, immediately payable by Tenant as additional rent, in the amount of
five percent (5%) of each such obligation. This sum is intended to compensate
Landlord for accounting and administrative expenses incurred by Landlord, as
well as the loss of the use of funds.  In
addition to the late charge, any and all rent or other charges which Tenant is
obligated to pay to Landlord under this Lease which are unpaid shall bear
interest at the rate set forth in Section 17.6 from the date said payment was
due until paid.

 

17.4         Right
of Landlord to Re-Enter

 

In the event of any termination of this Lease, Landlord shall have the
immediate right to enter upon and repossess the Premises, and any personal
property of Tenant may be removed from

 

22

 

the Premises and
stored in any public warehouse at the risk and expense of Tenant.

 

17.5         Surrender
of Premises

 

No act or thing done by Landlord or any agent or employee of Landlord
during the Lease term shall be deemed to constitute an acceptance by Landlord
or a surrender of Premises unless such intent is specifically acknowledged in a
writing signed by Landlord.  The delivery
of keys to the Premises to Landlord or any agent or employee of Landlord shall
not constitute a surrender of the Premises or effect a termination of this
Lease, whether or not the keys are thereafter retained by Landlord and, notwithstanding
such delivery, Tenant shall be entitled to the return of such keys at any
reasonable time upon request until this Lease shall have been terminated
properly.  The voluntary or other
surrender of this Lease by Tenant, whether accepted by Landlord or not, or a
mutual termination hereof, shall not work a merger, and at the option of
Landlord shall operate as an assignment to Landlord of all subleases or
subtenancies affecting the Premises.

 

17.6         Interest
Charges

 

Any amount not paid by one party to the other when due to the other
party will bear interest from the date due at the lesser of (i) the prime
commercial rate being charged by the Bank of America N.A. in effect on the date
due plus two percent (2%) per annum; or (ii) the maximum rate permitted by
law.  If Bank of America N.A. is no
longer in existence, then another comparable bank or financial institution
shall be substituted by Landlord.

 

17.7         Tenant’s
Default

 

If Tenant is in default of the Lease, then:

 

17.7.1      For
so long as Landlord does not terminate Tenant’s right to possession of the
Premises, if Tenant obtains Landlord’s consent, Tenant will have the right to
assign or sublet its interest in the Lease, but Tenant will not be released from
liability.

 

17.7.2      No
structural changes to the building at any cost shall be permitted without the
prior written approval of Landlord.

 

17.7.3      All
costs of de-identification of the Premises shall be paid by Tenant whether or
not Landlord terminated this Lease.

 

17.8         Default
by Landlord

 

Landlord shall be in default if Landlord fails to perform any provision
of this Lease required of it and the failure is not cured within thirty (30)
days after notice has been given to Landlord. 
If, however, the failure cannot reasonably be cured within the cure
period, Landlord shall not be in default of this

 

23

 

Lease if Landlord
commences to cure the failure within the cure period and diligently and in good
faith continues to cure the failure. 
Notices given under this Section 17.8 shall specify the alleged breach
and the applicable Lease provisions.  If
Landlord shall at any time default beyond the applicable notice and cure
period, Tenant shall have the right to cure such default on Landlord’s behalf.
Any sums expended by Tenant in doing so, and all reasonably necessary
incidental costs and expenses incurred in connection therewith, shall be
payable by Landlord to Tenant within thirty (30) days following demand therefor
by Tenant, provided, however, that Tenant shall not be entitled to any
deduction or offset against any rent otherwise payable to Landlord under this
Lease.

 

18.  RIGHT OF INSPECTION

 

Landlord and Landlord’s authorized representatives shall have the right
after written notice to Tenant, to enter upon the Premises at all reasonable
hours for the purpose of inspecting the Premises or of making repairs,
additions, or alterations in or upon the Premises, and, for the purpose of
exhibiting the premises to prospective tenants, purchasers, or others.  Provided Tenant is not in default beyond any
applicable cure period, Landlord shall not exhibit any “for sale” signs during
the term of the Lease.

 

19.  WAIVER
OF BREACH

 

No waiver by Landlord of any breach of any one or more of the terms,
covenants, conditions, or agreements of this Lease shall be deemed to imply or
constitute a waiver of any succeeding or other breach.  Failure of Landlord to insist upon the strict
performance of any of the terms, conditions, covenants, and agreements of this
Lease shall not constitute or be considered as a waiver or relinquishment of
Landlord’s rights to subsequently enforce any default, term, condition,
covenant, or agreement, which shall all continue in full force and effect.  The rights and remedies of Landlord under
this Lease shall be cumulative and in addition to any and all other rights and
remedies which Landlord has or may have.

 

20.  NOTICES

 

20.1         Notice
Requirements

 

All notices, requests, or demands herein provided to be given or made,
or which may be given or made by either party to the other, shall be given or
made only in writing and shall be deemed to have been duly given:  (i) when delivered personally at the address
set forth below, or to any agent of the party to whom notice is being given; or
(ii) on the date delivered when sent via Overnight Mail, properly addressed and
postage prepaid; or (iii) on the date sent via facsimile transmission; or (iv)
seventy-two (72) hours after the time the same is deposited in

 

24

 

the United States
mail, properly addressed and first class postage prepaid, return receipt
requested.  The proper address to which
notices, requests, or demands may be given or made by either party shall be the
address set forth at the end of this Section or to such other address or to
such other person as any party shall designate. 
Such address may be changed by written notice given to the other party
in accordance with this Section.

 

If to Landlord:

 

Realty Income Corporation

Attn:  Legal Department

220 West Crest Street

Escondido, CA 92025-1707

Phone Number:  (760) 741-2111

Fax Number:  (760) 741-8674

 

If to Tenant:

 

Splish Splash at
Adventureland, Inc.

C/o Palace Entertainment

Attn:  Property Management Department

18300 Von Karmen Ave.,
Suite 900

Irvine, CA 92614

Phone Number:  (949) 261-0404

Fax Number:  (949) 261-1414

 

20.2         Payments
Under Lease

 

Rent and all other payments due to Landlord under this Lease shall be
paid in lawful money of the United States of America without offset or
deduction to the name and at the address first given above or to such other
persons or parties or at such other places as Landlord may from time to time
designate in writing.

 

21. 
RELATIONSHIP OF THE PARTIES

 

This Lease shall not be deemed or construed by the parties, nor by any
third party, as creating the relationship of (i) principal and agent, (ii)
partnership, or (iii) joint venture between the parties.  Neither the method of computation of rent nor
any other provision of this Lease, nor any acts of the parties are other than
in the relationship of Landlord and Tenant.

 

22. 
SUBORDINATION, ATTORNMENT AND ESTOPPEL

 

22.1         Subordination
and Non-Disturbance

 

Subject to the provisions of this Section, this Lease and the leasehold
estate created hereby shall be, at the option and upon written declaration of
Landlord, subject, subordinate, and inferior to the lien and estate of any
liens, trust deeds, and encumbrances (“Mortgages”), and all renewals,
extensions, or

 

25

 

replacements thereof,
now or hereafter imposed by Landlord upon the Premises; provided, however, that
this Lease shall not be subordinate to any Mortgage arising after the date of
this Lease, or any renewal, extension, or replacement thereof, unless and until
Landlord provides Tenant with an agreement (“Non-Disturbance Agreement”),
signed and acknowledged by each holder of any such interest setting forth that so long as Tenant is not in default
hereunder, Landlord’s and Tenant’s rights and obligations hereunder shall remain
in force and Tenant’s right to possession shall be upheld.  The Non-Disturbance Agreement may contain
additional provisions as are customarily requested by secured lenders with
liens encumbering real property security similar to the Premises, including, without
limitation, Tenant’s agreement to attorn as set forth in Section 22.2
below.  Tenant shall, promptly follow a
request by Landlord and after receipt of the Non-Disturbance Agreement, execute
and acknowledge any subordination agreement or other documents required to
establish of record the priority of any such encumbrance over this Lease, so
long as such agreement does not otherwise increase Tenant’s obligations or
diminish Tenant’s rights hereunder.

 

22.2         Attornment

 

In the event of foreclosure of any Mortgage, whether superior or
subordinate to this Lease, then (i) this Lease shall continue in force; (ii)
Tenant’s quiet possession shall not be disturbed if Tenant is not in default
hereunder; (iii) Tenant shall attorn to and recognize the mortgagee or
purchaser at foreclosure sale (“Successor Landlord”) as Tenant’s landlord for
the remaining term of this Lease; and (iv) the Successor Landlord shall not be
bound by (a) any payment of rent for more than one month in advance; (b) any
amendment, modification, or ending of this Lease without the Successor Landlord’s
consent after the Successor Landlord’s name is given to Tenant, unless the
amendment, modification, or ending is specifically authorized by the original
Lease and does not require Landlord’s prior agreement or consent; and (c) any
liability for any act or omission of a prior Landlord. At the request of the
Successor Landlord, Tenant shall execute a new lease for the Premises, setting
forth all of the provisions of this Lease except that the term of the new lease
shall be for the balance of the term of this Lease.

 

22.3         Estoppel
Certificate

 

Tenant shall execute and deliver to Landlord, within twenty (20) days
after receipt of Landlord’s request, any estoppel certificate or other
statement to be furnished to any prospective purchaser of or any lender against
the Premises. Such estoppel certificate shall acknowledge and certify each of
the following matters, to the extent each may be true:  that the Lease is in effect and not subject
to any rental offsets, claims, or defenses to its enforcement; the commencement
and termination dates of the term; that Tenant is paying rent on a current
basis; that any improvements required to be furnished under the Lease have been
completed in all respects; that the Lease constitutes

 

26

 

the entire
agreement between Tenant and Landlord relating to the Premises; that Tenant has
accepted the Premises and is in possession thereof; that the Lease has not been
modified, altered, or amended except in specified respects by specified
instruments; and that Tenant has no notice of any prior assignment,
hypothecation, or pledge of rents or the Lease.  Tenant shall also, upon request of Landlord,
certify and agree for the benefit of any lender against the Premises or the
building (“Lender”) that Tenant will not look to such Lender: as being liable
for any act or omission of Landlord; as being obligated to cure any defaults of
Landlord under the Lease which occurred prior to the time Lender, its
successors or assigns, acquired Landlord’s interest in the Premises by
foreclosure or otherwise, as being bound by any payment of rent or additional
rent by Tenant to Landlord for more than one (1) month in advance; or as being
bound by Landlord to any amendment or modification of the Lease without Lender’s
written consent.  Failure to deliver the
documents required under this Section 22 in the time period required shall
constitute an Event of Default without the need for any notice or cure period.

 

23.  TENANT’S
FINANCIAL STATEMENTS

 

During the term of the Lease, Tenant shall provide Landlord with
current financial statements as follows: 
(i) within sixty (60) days of the end of each fiscal quarter, including
the fourth (4th) quarter, Tenant’s profit and loss statement and
balance sheet; and (ii) within one hundred twenty (120) days of the end of each
fiscal year. Tenant’s profit and loss statement, balance sheet, statement of
changes in financial position, and notes to the financial statements as reviewed
or audited by an independent certified public accountant or accounting
firm.  Tenant’s filing, and delivering a
copy to Landlord, of any financial statement as required by any securities
regulation for which it shall be obligated for purpose of public disclosure,
shall be deemed to satisfy this Section.

 

24. 
ATTORNEYS’ FEES

 

24.1         Recovery
of Attorneys’ Fees and Costs of Suit

 

Tenant shall reimburse Landlord, upon demand, for any costs or expenses
incurred by Landlord in connection with any breach or default under this Lease,
whether or not suit is commenced or judgment entered.  Such costs shall include legal fees and costs
incurred for the negotiation of a settlement, enforcement of rights, or
otherwise.  Furthermore, if any action
for breach of or to enforce the provisions of this Lease is commenced, the
court in such action shall award to the party in whose favor a judgment is
entered, a reasonable sum as attorneys, fees and costs.  Such attorneys’ fees and costs shall be paid
by the losing party in such action.

 

27

 

24.2         Party
to Litigation

 

Tenant shall indemnify Landlord against and hold Landlord harmless from
all costs, expenses, demands, and liability incurred by Landlord if Landlord
becomes or is made a party to any claim or action (i) instituted by Tenant, or by any third party against Tenant,
or by or against any person holding any interest under or using the Premises by
license of or agreement with Tenant; (ii) for foreclosure of any lien for labor
or material furnished to or for Tenant or such other person; (iii) otherwise
arising out of or resulting from any action or transaction of Tenant or such
other person; or (iv) necessary to protect Landlord’s interest under this Lease
in a bankruptcy proceeding, or other proceeding under Title 11 of the United
States Code, as amended. Tenant shall defend Landlord against any such claim or
action at Tenant’s expense with counsel reasonably acceptable to Landlord or,
at Landlord’s election, Tenant shall reimburse Landlord for any legal fees or
costs incurred by Landlord in any such claim or action.

 

24.3         Landlord’s
Consent

 

Tenant shall pay Landlord’s reasonable attorneys’ fees and other costs
incurred in connection with Tenant’s request for Landlord’s consent under
Section 16, “Assignment and Subletting,” or in connection with any other act
which Tenant proposes to do and which requires Landlord’s consent.

 

25.  CONSENT

 

Landlord shall have no liability for damages resulting from Landlord’s
failure to give any consent, approval, or instruction reserved to
Landlord.  Tenant’s sole remedy in any
such event shall be an action for injunctive relief.

 

26. 
AUTHORITY TO MAKE LEASE; COVENANT OF QUIET ENJOYMENT

 

26.1         Full
Power and Authority to Enter Lease

 

The parties covenant and warrant that each has full power and authority
to enter into this Lease.

 

26.2         Quiet
Enjoyment

 

Landlord covenants and warrants that Tenant shall have and enjoy full,
quiet, and peaceful possession of the Premises, its appurtenances and all
rights and privileges incidental thereto during the term, as against all
persons claiming by through, or under Landlord, subject to the provisions of
this Lease and any title exceptions or defects in existence at the time of the
conveyance of the Premises to Landlord by Tenant.

 

26.3         No
Violation of Covenants and Restrictions

 

Tenant shall not violate or cause Landlord to violate any recorded
covenants and restrictions affecting the Premises.  Tenant shall defend, indemnify, and hold
harmless Landlord from any costs or expenses incurred from such a violation.

 

28

 

27. 
HAZARDOUS MATERIAL

 

27.1         Environmental
Compliance

 

Tenant shall not cause or permit any Hazardous Material to be brought
upon, or used in or about the Premises by Tenant, its agents, employees,
contractors, or invitees, without the prior written consent of Landlord (which
Landlord shall not unreasonably withhold as long as Tenant demonstrates to
Landlord’s reasonable satisfaction that such Hazardous Material is necessary or
useful to Tenant’s business and will be used, kept, and stored in a manner that
complies with all laws relating to such Hazardous Material.) If Tenant breaches
the obligations stated in the preceding sentence, if the presence of Hazardous
Material on the Premises caused or permitted by Tenant results in contamination
of the Premises, or if contamination of the Premises by Hazardous Material
otherwise occurs and Landlord has not caused the contamination, then Tenant
shall indemnify, defend, and hold Landlord harmless from any and all claims,
judgments, damages, penalties, fines, costs, liabilities, or losses (including,
without limitation, diminution in value of the Premises, damages for the loss
or restriction on use of rentable or usable space or of any amenity of the
Premises, damages arising from any adverse impact on marketing of space of the
Premises, and sums paid in settlement of claims, attorneys’ fees, consultation
fees, and expert fees) which arise during or after the term of the Lease as a
result of such contamination.  This
indemnification of Landlord by Tenant includes, without limitation, costs
incurred in connection with any investigation or site conditions or any
cleanup, remedial, removal, or restoration work required by any federal, state,
or local governmental agency or political subdivision because of Hazardous
Material present in the soil or ground water on or under the Premises.  Without limiting the foregoing, if the
presence of any Hazardous Material on the Premises not caused by Landlord
results in any contamination of the Premises, Tenant shall promptly take all
actions at its sole expense as are recommended by environmental engineers hired
by Tenant or Landlord and are necessary to return the Premises to the condition
existing prior to the introduction of any such Hazardous Material to the
Premises; provided that Landlord’s approval of such actions shall first be
obtained, which approval shall not be unreasonably withheld so long as such
actions would not potentially have any material adverse long-term or short-term
effect on the Premises.

 

27.2         Tenant’s
Responsibility for Hazardous Materials

 

Landlord and Tenant acknowledge that Landlord may become legally liable
for the costs of complying with Laws relating to Hazardous Material which are
not caused by Landlord or Tenant including the following:  (i) Hazardous Material present in the soil or
ground water on the Premises prior to or following the Commencement Date of the
Lease; (ii) a change in Laws which relate to Hazardous Material which make
Hazardous Material present on the Premises as of the Commencement Date, whether

 

29

 

known or unknown
to Landlord, a violation of such new Laws; (iii) Hazardous Material that
migrates, flows, percolates, diffuses, or in any way moves on to or under the
Premises before or after the Commencement Date; (iv) Hazardous Material present
or under the Premises as a result of any discharge, dumping, or spilling
(whether accidental or otherwise) on the Premises by other tenants of the
Premises or their agents, employees, contractors, or invitees, or by
others.  Accordingly, Landlord and Tenant
agree that the cost of complying with Laws relating to Hazardous Material on
the Premises for which Landlord is legally liable shall be the responsibility
and shall be paid by Tenant. To the extent any such expense relating to
Hazardous Material is subsequently recovered or reimbursed through insurance,
or recovery from responsible third parties, or other action, Tenant shall be
entitled to a reimbursement to the extent it has paid the maintenance expense
to which such recovery or reimbursement relates.

 

27.3         Survival

 

Provisions of this Section 27 shall survive termination of tenancy.

 

28.  GENERAL PROVISIONS

 

28.1         Gender;
Number

 

The use of (i) the neuter gender includes the masculine and feminine
and (ii) the singular number includes the plural, whenever the context
requires.

 

28.2         Captions

 

Captions in this Lease are inserted for the convenience of reference
only and do not define, describe, or limit the scope or the intent of this
Lease or any of its terms.

 

28.3         Exhibits

 

All attached exhibits are a part of this Lease and are incorporated in
full by this reference.  Except as
specifically provided herein, if any provision contained in any exhibit hereto
is inconsistent or in conflict with any provisions of this Lease, the
provisions of this Lease shall supersede the provisions of such exhibit and
shall be paramount and controlling.

 

28.4         Entire
Agreement

 

This Lease contains the entire agreement between the parties relating
to the transactions contemplated hereby and all prior or contemporaneous
agreements, understandings, representations and statements, oral or written,
are merged into this Lease.

 

28.5         Drafting

 

This Lease shall not be construed more strictly against one party than
the other because it may have been drafted by one of the parties or its
counsel, each having contributed

 

30

 

substantially and
materially to the negotiation and drafting hereof.

 

28.6         Modification

 

No modification, waiver, amendment, discharge, or change of this Lease
shall be valid unless it is in
writing and signed by the party against which the enforcement of the
modification, waiver, amendment, discharge, or change is or may be sought.

 

28.7         Joint
and Several Liability

 

If any party consists of more than one person or entity, the liability
of each such person or entity signing this Lease shall be joint and several.

 

28.8         Governing
Law

 

This Lease shall be construed and enforced in accordance with the laws
of the state in which the Premises are located.

 

28.9         Attorneys’
Fees

 

With respect to Section 24 and any other provision in this Lease
providing for payment or indemnification of attorneys’ fees, such fees shall be
deemed to include reasonable fees incurred through any applicable appeal
process, and shall include fees attributable to legal services provided by any
in-house counsel and staff to the prevailing or indemnified party.  For purposes hereof, the services of in-house
counsel and their staff shall be valued at rates for independent counsel
prevailing in the metropolitan area in which such counsel and staff practice.

 

28.10       Time
of Essence

 

Time is of the essence of every provision of this Lease.

 

28.11       Severability

 

In the event any term, covenant, condition, or provision of this Lease
is held to be invalid, void, or otherwise unenforceable by any court of
competent jurisdiction, the fact that such term, covenant, condition, or
provision is invalid, void, or otherwise unenforceable shall in no way affect
the validity or enforceability of any other term, covenant, condition, or
provision of this Lease.

 

28.12       Successors
and Assigns

 

Except as otherwise provided herein, all terms of this Lease shall be
binding upon, inure to the benefit of, and be enforceable by the parties and
their respective legal representatives, successors, and assigns.

 

28.13       Independent
Covenants

 

This Lease shall be construed as though the covenants herein between
Landlord and Tenant are independent and not dependent, and Tenant hereby
expressly waives the benefit of any statute to the contrary and agrees that if
Landlord fails to perform its obligations set forth herein, Tenant shall not be
entitled to make any repairs or perform any acts hereunder at

 

31

 

Landlord’s expense
or to any offset of the rent or other amounts owing hereunder against Landlord;
provided, however, the foregoing shall in no way impair the right of Tenant to
commence a separate action against Landlord for any violation by Landlord of
the provisions hereof so long as notice is first given to Landlord and any
holder of a mortgage or deed of trust covering the Building or all or any
portion of the Project (of whose address Tenant has theretofore been notified)
and an opportunity is granted to Landlord and such holder to correct such
violation as provided above.

 

28.14       Information
Provided

 

Tenant warrants and represents that all information Tenant has provided
to Landlord is accurate and correct and Tenant acknowledges that Landlord has
relied upon such information in entering into this Lease

 

28.15       Limitation
of Landlord’s Liability

 

Notwithstanding anything contained in this Lease to the contrary,
Landlord shall not incur any liability beyond Landlord’s interest in the
Premises upon a breach of this Lease, and Tenant shall look exclusively to such
interest in the Premises for the payment and discharge of any obligations imposed
upon Landlord under this Lease.

 

28.16       No
Lease Until Accepted

 

Landlord’s delivery of unexecuted copies or drafts of this Lease is
solely for the purpose of review by the party to whom delivered and is in no
way to be construed as an offer by Landlord nor in any way implies that
Landlord is under any obligation to Lease the Premises. When this Lease has
been executed by both Landlord and Tenant, it shall constitute a binding
agreement to lease the Premises upon the terms and conditions provided herein
and Landlord and Tenant agree to execute all instruments and documents and take
all actions as may be reasonably necessary or required in order to consummate
the lease of the Premises as contemplated herein.

 

THE REMAINDER OF THIS PAGE WAS LEFT BLANK INTENTIONALLY

 

32

 

28.17       Counterparts

 

This Lease may be executed in any number of counterparts, each of which
shall be deemed and original.  The
counterparts shall together constitute but one agreement.  Any signature on a copy of this Lease or any
document necessary or convenient thereto sent by facsimile shall be binding
upon transmission by facsimile and the facsimile copy may be utilized for the
purposes of this Lease.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  Realty Income Corporation,

  a Maryland corporation

  	
  Splish Splash at

  Adventureland, Inc.,

  a New York corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael R. Pfeiffer

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Michael R.
  Pfeiffer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Senior Vice
  President,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  General Counsel

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  7-14-99

  	
   

  	
  Date:

  	
  July 23, 1999

  	
   

  
								

 

33

 

COMMERCIAL GROUND LEASE

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

	
  PREMISES LOCATION:

  	
  Splish Splash at Adventure Land

  
	
   

  	
  2549 Splish Splash
  Drive

  
	
   

  	
  Riverhead, New York
  11901

  

 

 

(To be taken from the Commitment for Policy of Title Insurance)

 

 

COMMERCIAL GROUND LEASE

 

EXHIBIT “B”

MEMORANDUM OF LEASE

 

	
  Recording requested by, and after recording return
  to:

  	
   

  
	
   

  	
   

  
	
  Realty Income Corporation

  	
   

  
	
  Attn: Legal Department

  	
   

  
	
  220 West Crest Street

  	
   

  
	
  Escondido, CA 92025-1707

  	
   

  

 

MEMORANDUM OF LEASE

 

This Memorandum of Lease is made and entered into as of July 14, 1999
by and between Realty Income Corporation, a Maryland corporation (“Landlord”)
and Splish Splash at Adventureland, Inc., a New York corporation (“Tenant”) who
agree as follows;

 

1.             Terms
and Premises.  Landlord leases to
Tenant and Tenant leases from Landlord that certain real property, together with
all the improvements thereon and appurtenances thereunto belonging (the “Premises”),
which legal description is attached hereto and incorporated herein as Exhibit “A,”
commonly known as:

 

Splish Splash at Adventure Land

2549 Splish Splash Drive

Riverhead, New York 11901

 

for a term of Thirty-Four
and One-Half (34.5) years, commencing on the date the deed transferring
ownership of the Premises to Landlord is recorded.

 

2.             Purpose of
Memorandum of Lease.  This Memorandum
of Lease is prepared for the purpose of recordation and does not modify the
provisions of the lease dated July 14, 1999 and entered into by and between
Landlord and Tenant (the “Lease”). The Lease is incorporated herein by
reference.  If there are any conflicts
between the Lease and this Memorandum of Lease, the provisions of the Lease
shall prevail.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  Realty Income Corporation,

  	
  Splish Splash at

  
	
  a Maryland corporation

  	
  Adventureland, Inc.,

  
	
   

  	
  a New York corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

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