Document:

Exhibit 10.15

 

COMMERCIAL GROUND LEASE

 

May 2, 2000

 

LANDLORD:

 

Bellwood Associates Limited Partnership.

a Massachusetts limited partnership

 

TENANT:

 

Festival Fun Parks, LLC

a Delaware limited liability company

 

PREMISES LOCATION:

 

WATER COUNTRY

2300 LAFAYETTE ROAD

PORTSMOUTH, NEW HAMPSHIRE

 

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COMMERCIAL GROUND LEASE

 

This Commercial Ground Lease (this “Lease”) is entered into as of May 2,
2000 by and between BELLWOOD ASSOCIATES, L.P., a Massachusetts limited
partnership (“Landlord”), and FESTIVAL FUN PARKS, LLC, a Delaware limited
liability company (“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:

 

WATER COUNTRY

2300 LAFAYETTE ROAD

PORTSMOUTH, NEW HAMPSHIRE

 

B.                                     Landlord previously leased the Premises to
Water Country Corporation, a New Hampshire corporation, which lease has been
terminated and a Notice of Lease Termination (as defined herein) is recorded
with the Rockingham County Registry of Deeds concurrently herewith.

 

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

 

Section 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. If the
Commencement Date (as hereinafter defined) shall not be the first day of a
calendar month, the first Lease Year shall include the partial month during
which the Commencement Date shall have occurred.

 

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)

 

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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.

 

1.3                                          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.

 

Section 2. 

 

PREMISES

 

2.1                                            Landlord hereby leases to Tenant and Tenant
hereby leases from Landlord the Premises on the terms and conditions set forth
in this Lease. Tenant has examined the Premises and title to the Premises and
has found all of the same satisfactory for all purposes. Tenant acknowledges
that Tenant is fully familiar with the physical condition of the Premises and
that the Landlord makes no representation or warranty, express or implied, with
respect to same. TENANT AGREES TO ACCEPT DELIVERY OF POSSESSION OF THE PREMISES
ON AN “AS IS” BASIS, IT BEING AGREED THAT TENANT WILL LEASE THE PREMISES IN
THEIR THEN-EXISTING CONDITION, WITH ALL FAULTS. LANDLORD HEREBY DISCLAIMS ANY
AND ALL EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY
PARTICULAR PURPOSE RELATIVE TO THE PREMISES OR ANY COMPONENT PART THEREOF.
Tenant acknowledges and agrees that no representations or warranties have been
made by Landlord, or by any person, firm or agent acting or purporting to act
on behalf of Landlord, as to (i) the presence or absence on or in the
Premises of any particular materials or substances (including, without
limitation, Hazardous Material), (ii) the condition or repair of the
Premises or any portion thereof, (iii) the value, expense of operation or
income potential of the Premises, (iv) the accuracy or completeness of any
title, survey, structural reports, environmental audits or other information
provided to Tenant by any third party contractor relative to the Premises
(regardless of whether the same were retained or paid for by Landlord), or (v) any
other fact or condition which has or might affect the Premises or the condition,
repair, value, expense of operation or income potential thereof. Tenant
represents that the officers of Tenant are knowledgeable and experienced in the
leasing of properties comparable to the Premises and agrees that Tenant will be
relying solely on Tenant’s inspections of the Premises in leasing the Premises.
THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN NEGOTIATED AND ARE INTENDED TO BE A
COMPLETE EXCLUSION AND NEGATION BY THE LANDLORD OF, AND THE LANDLORD DOES

 

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HEREBY
DISCLAIM, ANY AND ALL WARRANTIES BY THE LANDLORD,  EXPRESS OR IMPLIED, WITH RESPECT TO THE
PREMISES OR ANY PORTION THEREOF, WHETHER ARISING PURSUANT TO THE UNIFORM COMMERCIAL
CODE OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT OR OTHERWISE, AND TENANT
HEREBY ACKNOWLEDGES AND ACCEPTS SUCH EXCLUSION, NEGATION AND DISCLAIMER.

 

Section 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 Agreement
for Purchase and Sale of Assets (the “Purchase Agreement”) of even date
herewith by and between Water Country Corporation and Bellwood Associates,
L.P., as sellers and Landlord, and Tenant, as purchaser under the Purchase
Agreement. Landlord previously leased the Premises to Water Country Corporation
under that certain lease dated                  which
lease has been terminated by Landlord and a notice of lease termination (“Notice
of Lease Termination”) has been or will be recorded in the Rockingham County
Registry of Deeds concurrently with recording of the Memorandum of Lease, the
form of which is attached hereto and incorporated herein as Exhibit “B”.  The expiration date of the Term of this Lease
shall be last day of the month thirty-four and one-half (341/2)
years following the Commencement Date (the “Initial Term”), unless extended as
set forth in Sections 3.2, 3.3 and 3.4. It is understood and agreed that the
Initial Term and the first Extension Period (to the extent exercised by Tenant)
shall expire in the middle of a Lease Year. Therefore, the final Lease Year of
the Initial Term and of the First Extension Period shall consist of a partial
Lease Year, and the first day of each Extension Period shall commence a new
Lease Year. References to the “Term” of this Lease shall include such
extensions, to the extent exercised by Tenant.  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 twenty-four (24) calendar
months prior to the expiration of the Initial Term, Tenant shall have the right
to extend the Term of this Lease for an additional sixty-six (66) months by
notifying Landlord of such intention in writing (the “First Extension Period”).
The maximum Term of this Lease with the First Extension Period is forty (40)
years.

 

3.3                                 Second Option to Extend. On or before twenty-four (24) calendar
months prior to the expiration of the First Extension Period, 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 this Lease with the Second Extension Period is forty-five (45)
years.

 

3.4                                 Third Option to Extend. On or before twenty-four (24) calendar
months prior to the expiration of the Second Extension Period, Tenant may
extend the Term of this Lease for an additional sixty (60) months by notifying
Landlord of such intention in writing (the

 

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“Third
Extension Period”). The maximum Term of this Lease with the Third Extension
Period is fifty (50) years.

 

3.5                                 Time is of the Essence. Time is of the essence with respect to
Tenant’s exercise of its right to extend the Term of this Lease for each
applicable Extension Period. Notwithstanding anything to the contrary set forth
in Sections 3.2, 3.3 or 3.4 above.
Tenant’s exercise of its right to extend the Term for the applicable Extension
Period shall be null and void and of no force or effect if, at the time such
election is made, Landlord has delivered a notice of termination of this Lease
following an Event of Default hereunder with respect to Tenant’s failure to pay
Monthly Rent, and such Event of Default remains uncured.

 

Section 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.
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. Tenant shall not be entitled to any abatement. reduction, diminution,
set-off, counterclaim, defense or deduction with respect to any Monthly Rent,
additional rent or other sums payable hereunder, nor shall the obligations of
Tenant hereunder be affected, by reason of: any damage to or destruction of any
or all portions of the Premises or any portion of the Improvements thereof; any
defect in the condition, design, operation or fitness for use of any or all of
the Improvements, the Premises or any portion thereof; any taking of any or all
of the Premises or any part thereof by condemnation or otherwise (except as
otherwise specifically provided herein); any prohibition, limitation,
interruption, cessation, restriction or prevention of Tenant’s use, occupancy
or enjoyment of the Premises, or any interference with such use, occupancy or
enjoyment by any person; any eviction by paramount title or otherwise; any
default by Landlord hereunder or under any other agreement; the impossibility
or illegality of performance by Landlord, Tenant or both; any action of any
governmental authority (including, without limitation, changes in legal
requirements); construction on or renovation of any Improvements by Tenant; or
any failure of the Premises to comply with applicable laws, legal requirements,
or any other cause whether similar or dissimilar to the foregoing. All costs,
expenses and obligations of every kind and nature whatsoever relating to the
Premises and the appurtenances thereto and the use and occupancy thereof which
may arise or become due and payable with respect to the period which ends on
the expiration or earlier termination of the Term in accordance with the
provisions hereof (whether or not the same shall become payable during the Term
or thereafter) shall be paid by Tenant. The parties intend that the Obligations
of Tenant hereunder shall be separate and independent covenants and agreements
and shall continue unaffected unless such obligations shall have been modified
or terminated pursuant to an express provision of this Lease.

 

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Except as otherwise expressly provided herein. Tenant waives all rights
to terminate or surrender this Lease, or to any abatement or deferment of
Monthly Rent, additional rent or other sums payable hereunder.

 

4.2                                 Monthly Rent. Tenant shall pay to Landlord as monthly
rent (the “Monthly Rent”) during the first Lease Year (with Monthly Rent for
subsequent Lease Years (including, without limitation, all Lease Years within
any applicable Extension Period) determined pursuant to Section 5 below)
determined pursuant to Sections 4.3 and 5 below) an amount equal to Seventy
Four Thousand Three Hundred and Seventy-Five Dollars ($74,375). 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. The Monthly Rent for any partial month shall be prorated based upon
a thirty (30) day month. 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.

 

4.3                                 Monthly Rent During the Extension Periods. In the event Tenant exercises one or more
of its options to extend the Term of this Lease as set forth in Sections 3.2, 3.3,
and 3.4 above, the Monthly Rent for the first Lease Year of each of the First
through Third Extension Periods shall be the Monthly Rent paid during the
previous Lease Year, as adjusted for such first and for each subsequent Lease
Year of the applicable Extension Period pursuant to Section 5 hereof (such
applicable Monthly Rent to be payable on the first day of each month of each
such Extension Period).

 

Section 5.

 

CONSUMER
PRICE INDEX RENTAL INCREASE

 

5.1                                 The capitalized terms used herein are defined
below. Effective on each Adjustment Date, Monthly Rent shall be increased over
the Monthly Rent payable by Tenant during the immediately preceding calendar
month, by 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 the event the applicable
increase in Monthly Rent is not determined by the applicable Adjustment Date,
Tenant shall continue to pay Monthly Rent in the amount payable during the
month immediately preceding the Adjustment Date, and the first payment of the

 

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newly-increased
amount of Monthly Rent shall include a lump sum payment to account for any
deficiencies in Monthly Rent paid subsequent to the Adjustment Date. In
applying the foregoing formula for adjustments to the Monthly Rent, the following
terms shall have the following meanings:

 

5.2                                 Adjustment Date. “Adjustment Date” shall mean, as the case
may require, the first day of each Lease Year subsequent to the Commencement
Date (including, without limitation, the first day of each Lease Year during
any Extension Period).

 

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

 

5.4                                 CPI. “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.

 

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

 

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

 

Section 6.

 

INTENTIONALLY DELETED

 

This Section was deleted intentionally.

 

Section 7.

 

SECURITY DEPOSIT

 

No security deposit shall be paid by Tenant
to Landlord.

 

Section 8.

 

USE OF THE PREMISES

 

8.1                                 Tenant shall use the Premises only for a
family entertainment center, amusement center and/or water park and/or any
other legal use and uses related or ancillary thereto, and no other uses
without the prior written consent of Landlord which consent shall not be
unreasonably withheld or delayed. Tenant has satisfied itself that such use is
lawful and conforms to all applicable zoning and other use restrictions and
regulations applicable to the

 

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Premises.
Tenant shall, at Tenant’s expense, comply promptly with all applicable
statutes, laws, ordinances, rules, regulations, orders, covenants and
restrictions of record, and any other requirements that are enacted after the
Commencement Date and otherwise during the Term or any part of the Term hereof,
regulating or affecting 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. In no event shall the Premises or any portion thereof be
used for any purpose which violates any of the provisions of this Lease or
other recorded covenants, restrictions or agreements which are applicable to
the Premises. Tenant shall not use, occupy or permit the Premises to be used or
occupied, nor do or permit anything to be done in or on the Premises in a
manner which would (i) violate any certificate of occupancy or equivalent
certificate affecting the Premises or violate any applicable zoning or other
law, ordinance or regulation, (ii) make void or voidable any insurance
then in effect with respect to the Premises, (iii) adversely affect in any
manner the ability of Tenant to obtain fire and other insurance which Tenant is
required to furnish hereunder, (iv) cause any injury or damage to the
Improvements (hereinafter defined), or (v) constitute a public or private
nuisance or waste. Tenant shall obtain, at its sole cost and expense, any and
all certificates of occupancy, permits, licenses and consents applicable to the
Premises from any and all appropriate governmental authorities and shall
conduct its business operation at the Premises in compliance with any such certificate
of occupancy, permit, license and consent.

 

It is understood and agreed that any violation of zoning setback
requirements shown on the ALTA Survey (hereinafter defined) shall not
constitute a default by Tenant under this Lease; provided, however, Tenant
shall continue to be obligated to comply with all applicable law. For the
purposes of this paragraph, the “ALTA Survey” shall refer to that certain
survey dated March 6, 2000, prepared by Millette, Sprague &
Colwell, Inc., entitled “ALTA/ACSM Land Title Survey of Water Country Fun
Park, Bellwood Associates Limited Partnership”, Sheet 1 of 3.

 

Section 9. 

 

PROPERTY TAXES, ASSESSMENTS AND UTILITIES

 

9.1                                 Tenant’s Required Payments. Tenant shall (i) pay directly to the
applicable authority at least fifteen (15) days before delinquency and as
additional rent, all Property Taxes and Other Taxes, attributable solely to the
Premises or Tenant’s use and occupancy thereof (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, secured or unsecured, whether or
not now

 

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customary
or within the contemplation of Landlord and Tenant, that are levied, assessed,
charged, confirmed, or imposed on or against, or otherwise solely with respect
to, the Premises, the Improvements (hereinafter defined), the Permanent
Improvements (hereinafter defined) or any part thereof or any personal property
used in connection solely 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 attributable
to the Premises, the Improvements, the Permanent Improvements, such personal
property or any portion thereof 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 of every kind and description,
ordinary or extraordinary, foreseen or unforeseen (including, without
limitation, charges relating to the cost of providing facilities or services,
and charges relating to documents or instruments of record affecting 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 of the Improvements or of 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 this Lease, including, if
applicable, Property Taxes, Other Taxes, insurance, maintenance and other costs
incurred 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. Other Taxes
shall include any charge, imposition, assessment or other payments required in
connection with any easements or rights of way benefiting the Premises.

 

9.2                                 Payments Not Required by Tenant. Tenant shall not be required to pay any
property taxes or assessments or other taxes attributable to the Premises which
is not a part or portion of the Premises (including any easement or right of
way areas which benefit the Premises) or 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
(except to the extent the same are imposed, in whole or in part, in lieu of
Property Taxes or Other Taxes).

 

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, (a) 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, and (b) the
entire amount of such assessment shall be paid by Tenant prior to the
expiration of the Term.

 

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.

 

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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 lawfully 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 remains 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
qualified to do business in the state where the Premises are located. The
amount of bond shall equal one hundred percent (100%) 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). Current practice provides for two
(2) semi-annual tax bills (i.e. one bill issued in June, applicable to the
period from April 1 of such calendar year through September 30 of
such calendar year, and a second bill issued in December, applicable to the
period from October 1 of such calendar year through March 31 of the
following calendar 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.

 

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Section 10. 

 

BUILDING AND IMPROVEMENTS; TRADE
FIXTURES

 

10.1                           Building and Improvements. The buildings and all other improvements in,
on, or about the Premises and all additions, alterations, modifications, and
replacements thereto and thereof (collectively, the “Improvements”) 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 Landlord has not
delivered a notice of termination of this Lease following an Event of Default
hereunder for Tenant’s failure to pay Monthly Rent, and such Event of Default
remains uncured, Tenant shall have the right to lease and otherwise convey for
the Term of this Lease, any or all of such Improvements without Landlord’s
consent (subject to all other terms and conditions of this Lease). Subject to
Sections 10.3 and 10.4 below, all right, title, and interest of Tenant in and
to the Improvements shall cease, expire and vest exclusively in Landlord on the
expiration or any termination of this Lease. From and after an Event of Default
hereunder, and for so long as such Event of Default remains uncured. Tenant
shall not remove from the Premises any Improvements which, pursuant to New
Hampshire Law, constitute part of the real property or are deemed to be a
permanent leasehold improvement (collectively, the “Permanent Improvements”).
During the three (3) year period prior to the expiration of the Term (or
the expiration of any applicable Extension Period), Tenant shall only have the
right to remove Permanent Improvements from the Premises if Tenant either
replaces the same with Permanent Improvements of like quality, or restores that
which remains of the Premises to a safe and sightly condition. During the
entire Term, the Tenant shall maintain all Improvements and Permanent
Improvements in good order, condition and repair.

 

10.2                           Depreciation and Investment Tax Credit. During the Term of this Lease, only Tenant (or
at Tenant’s option, a subtenant, tenant or other designee of Tenant) shall be
able to claim depreciation and investment tax credit for taxation purposes on
any Improvements and Trade Fixtures.

 

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 of
this Lease, 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 (subject to all
legal requirements and the terms and conditions of the Lease). Subject to
Tenant’s repair of any damage occasioned thereby as set forth in the next
sentence and the remaining terms and conditions of this Lease, Trade Fixtures
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
and as provided in Section 10.4 below. Any damage occasioned to the
Premises by the removal of the Trade Fixtures shall be repaired at the sole
cost and expense of Tenant.

 

10.4                           Removal of Trade Fixtures. At the expiration or earlier termination of
this Lease, Tenant may remove the Trade Fixtures from the Premises and retain
such Trade Fixtures for Tenant’s benefit without any compensation to Landlord
therefor. All Permanent Improvements and other non-removable leasehold
improvements, alterations and additions to the

 

10

 

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, or commonly defined as fixtures shall
become the property of the Landlord immediately following the expiration or any
termination of this Lease. Any of the Trade Fixtures not removed within thirty
(30) 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.
Any damage occasioned to the Premises by the removal of the Trade Fixtures at
the expiration or termination of this Lease shall be fully repaired at the sole
cost and expense of Tenant. Upon the expiration or earlier termination of this
Lease, Tenant shall leave the Premises in a neat, clean and safe condition,
normal wear and tear excepted, free of trash and other debris.

 

10.5                           Financing of Trade Fixtures and Improvements. For purposes of Tenant’s financing or
leasing of the Trade Fixtures or the Improvements, Landlord covenants and
agrees that to the extent that the Trade Fixtures or the Improvements are
leased or financed, then any interest of Landlord in the Trade Fixtures and the
Improvements, as applicable, shall be subject, subordinate, and inferior to any
lien(s) (and all renewals, extension, or replacements thereof) now or hereafter
imposed by Tenant upon the Trade Fixtures and the Improvements; provided,
however, the enforcement of any lien shall not increase any of Landlord’s
obligations hereunder. Landlord agrees to execute such reasonable and necessary
documents to confirm Landlord’s foregoing covenant in favor of Tenant’s lien
holders or mortgagees within ten (10) days after receiving Tenant’s
written request therefor.

 

Section 11.

 

TENANT’S MAINTENANCE OBLIGATIONS

 

11.1                           Obligation to Maintain. During the Term of this Lease, Tenant
shall, at its own expense, keep and maintain the entire Premises, and all
Improvements, Permanent Improvements and Trade Fixtures situated thereon, in
good order and repair, including, but not limited to, the interior, exterior,
foundations, floors, walls, roof, and structure of all buildings and other
Improvements; 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, during the Term of this Lease, make
such repairs and replacements, structural and non-structural, foreseen and
unforeseen, as may be necessary to comply with the immediately foregoing
sentence, regardless of whether the benefit of such repair or replacement
extends beyond the Term of this Lease. Landlord shall not be required to
maintain, repair or rebuild all or any part of the Premises or any Improvements
or Permanent Improvements thereon. Tenant waives the right to (i) require
Landlord to maintain, repair or rebuild all or any part of the Premises, or (ii) make
repairs at the expense of Landlord pursuant to any legal requirements,
contract, agreement, covenant, condition or restriction at any time in effect.
Subject to the provisions of Section 10, the Premises, including all the
Improvements and Permanent Improvements, shall be returned to Landlord at the
termination or expiration of this Lease in good condition and repair, normal
wear and tear excepted. Notwithstanding the foregoing, in the event of
destruction of the Premises by fire or casualty, or condemnation, the condition
of the

 

11

 

Premises
upon termination of this Lease shall be governed by Section 14 or Section 15,
respectively.

 

In the event that all or any part of the Improvements or Permanent
improvements shall encroach upon any property, street or right-of-way adjoining
or adjacent to the Premises, or shall violate the agreements or conditions
affecting the Premises or any part thereof, or any legal requirements (subject
to the last paragraph of Section 8.1 hereof), or shall hinder,
obstruct or impair any easement or right-of-way to which the Premises are
subject. Tenant shall, at its expense, either (i) obtain valid and
effective waivers, variances, use permits, licenses or settlements of all
claims, liabilities and damages resulting therefrom, or (ii) if Landlord
consents thereto, which consent shall not be unreasonably withheld, make such
changes, including alteration or removal, to the Improvements and Permanent Improvements
and take such other action as shall be necessary to remove or eliminate such
encroachments, violations, hindrances, obstructions or impairments.

 

11.2                           Obligation to Keep the Premises Clear. Tenant shall keep the Premises, including
sidewalks adjacent to the Premises and all loading areas allocated for the use
of Tenant, reasonably 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.

 

Section 12.

 

REPAIRS AND ALTERATIONS

 

12.1                           Right to Make Alterations At all times during the Term of this Lease
(except as provided in Section 17.7.2) and otherwise subject to all other
terms and conditions of this Lease, Tenant shall have the right to make
alterations, additions, and improvements, including the construction, removal
or modification of Improvements (collectively, “Alterations”), to any portion
of the Premises. Subject to the provisions of Section 10 above, any
Alterations which may be made or installed by Tenant, to the extent in
existence at the termination or expiration of this Lease, shall remain upon the
Premises and, at the termination or expiration of this Lease, shall be
surrendered with the Premises to Landlord in good condition and repair, normal
wear and tear excepted. Any Alterations shall be subject to the following
requirements: (i) all such Alterations shall be completed in compliance
with all applicable legal requirements and the requirements of all insurance
policies required to be maintained by Tenant hereunder, (ii) Tenant shall
not make any Alterations in violation of the terms of any restriction,
easement, condition, covenant or other matter affecting title to or use of the
Premises, and (iii) Alterations shall only be commenced after all required
municipal and other governmental permits, authorizations and approvals shall
have been obtained by Tenant, at its own cost and expense.

 

Within sixty (60) days after 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 the following
sentence. Subject to Section 12.2, Tenant shall pay when due all claims
for labor and

 

12

 

materials
relating to work performed on the Premises and shall give Landlord at least ten
(10) days' prior written notice of the commencement of any such work. Upon
receipt of the foregoing ten (10) day notice, Landlord shall have the
right to require Tenant to, and at Landlord’s request Tenant shall, post
appropriate notices, including, but not limited to, notices of
non-responsibility, protecting Landlord and Landlord’s interest in the Premises
from any mechanics’ or materialsmens’ liens.

 

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 alteration of
the Premises. Notwithstanding the above, Tenant shall have the right to
lawfully 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-quarter (1-1/4)
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.

 

Section 13. 

 

INDEMNITY AND INSURANCE

 

13.1                           Indemnification. Tenant shall defend all actions against
Landlord or any owner, beneficial owner, partner, member, officer, director or
shareholder of Landlord, together with any mortgagee of Landlord, together with
their respective successors and assigns (herein collectively, “Indemnified
Parties”) with respect to, and shall pay, protect, indemnify and save harmless
the Indemnified Parties 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 to the extent caused by
reason of the negligence or willful misconduct of the Indemnified Parties,
including, without limiting the generality of the foregoing: (i) any
default or breach 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, 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 Term of this Lease
(including, without limitation, any holdovers in connection therewith),
including, without limitation, any acts, omissions, or negligence in the making
or performance of any

 

13

 

Alterations.
Tenant further agrees to indemnify and hold harmless the Indemnified Parties
from and 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 of Tenant referred to in
the preceding sentence other than claims to the extent caused by reason of the
negligence or willful misconduct of the Indemnified Parties. 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. Tenant shall defend the Indemnified Parties with counsel
selected by Tenant and reasonably acceptable to the Indemnified Parties.

 

For the purposes of this Section 13.1 and all other indemnity
provisions of this Lease, the “negligence or willful misconduct of the
Indemnified Parties’” (or of Landlord) shall expressly exclude any action or
omission after the date of this Lease of any employee of Tenant who, prior to
the dale of this Lease, was in the employ of Landlord.

 

13.2                           Insurance Company Requirement. Insurance required by this Lease shall be
issued by companies holding a general policyholder’s rating of at least A and a
financial size category of not less than X as set forth in the most current
issue of Best’s Insurance Guide and who are 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. No insurance
policy maintained by Tenant hereunder shall provide for a deductible or
self-insured retention in excess of $25,000.00.

 

13.3                           Insurance Certificate Requirements.

 

13.3.1                  Tenant shall deliver to Landlord evidence of
the insurance policies required to be carried hereunder evidencing the
existence and amounts of the insurance with loss payable clauses as required
herein, with evidence of payment thereof. 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 casualty insurance shall
provide for payment of loss to Tenant. A stipulated value or agreed amount
endorsement deleting the co-insurance provision to the building policy shall be
procured.

 

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 commercial general
public liability insurance with a combined single limit bodily injury and
property damage insurance on an occurrence basis insuring Tenant (with the
Indemnified Parties as additional insureds) 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 Five
Million Dollars ($5,000,000) per

 

14

 

occurrence
(calendar year 2000 Dollars). The policy shall provide blanket contractual
liability coverage. The limits of the insurance shall expressly not limit the
liability of Tenant under this Lease. 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 Twenty Million Dollars
($20,000,000) (calendar year 2000 Dollars).

 

13.4.2                              Tenant shall keep in force during the entire Term, insurance with respect
to the Improvements and Permanent Improvements against all perils included
within the classification “Direct Risk of Physical Loss”, covering such risks
as shall be customarily insured against with respect to improvements similar in
construction, location and use to the Improvements and Permanent Improvements,
with extended coverage, and in amounts not less than 100% of the actual
replacement cost of the Improvements (exclusive of foundations and excavations),
without regard to depreciation. If as of the date hereof, or at any time during
the term of this Lease, the Premises are not in compliance with all legal
requirements such that in the event of a partial or total casualty or
destruction such legal requirements would prohibit Tenant from restoring or
rebuilding the Premises and the Improvements and Permanent Improvements to the
specifications and condition of the same prior to such casualty or destruction,
then Tenant shall be required to carry agreed value insurance.

 

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) year’s rent payable under this Lease.

 

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 amount of not less than One Million Dollars ($1,000,000) or such greater amount as is reasonably necessary
to protect Landlord against such claims.

 

13.4.5                                During any period during which construction is conducted at the Premises
and during which period the construction and materials are not covered by the
existing policies, premium prepaid insurance policies covering the Premises (which
during construction shall be on an “Direct Risk of Physical Loss” perils,
including theft, “Builder’s Risk,” “Completed Value” form) in amounts equal to
the replacement costs of the Improvements and Permanent Improvements (including
construction materials and personal property on or off site) covering insurance
risks no less broad than those covered under a Standard Multi Peril (SMP) policy
form, which contains a 1987 Commercial ISO “Causes of Loss-Special Form,” with coverage
for such other expenses as Landlord may reasonably require. Such insurance
shall contain an agreed amount endorsement (such amount to include foundation
and underground pipes) and bear a 100% co-insurance clause. Said policies shall
contain a permission to occupy endorsement.

 

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),

 

15

 

nominee(s),
nominator(s), corporate and individual general partners, and agents with an
insurable interest as follows:

 

BELLWOOD ASSOCIATES. L.P., ITS PARTNERS AND ALL
SUCCESSOR(S), ASSIGNEE(S), SUBSIDIARIES, CORPORATIONS, PARTNERSHIPS,
PROPRIETORSHIPS, 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, OR SUCH OTHER DESCRIPTION AS PROVIDED BY LANDLORD.”*

 

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 fee or leasehold
interest in the Premises, 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 the insurance policies required under this Lease, furnish
Landlord with renewal certificates of insurance or renewal binders for such
insurance policies. 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 shall notify Tenant of such
lapse and, if not cured within ten (10) business days, Landlord may
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 such insurance pursuant to the immediately
foregoing sentence, Tenant shall promptly 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 placed by Landlord. If Tenant does or permits to be done anything
which shall increase the cost of the insurance policies placed by Landlord
pursuant to this paragraph, then promptly following Landlord’s demand therefor,
Tenant shall reimburse Landlord for any additional premiums charged to Landlord
as a consequence of its taking out such policies attributable to any acts or
omissions or operations of Tenant causing the increase in the cost of insurance.

 

Section 14. 

 

PARTIAL AND TOTAL DESTRUCTION OF THE
PREMISES

 

14.1                      In the event any part or all of the Premises
shall at any time during the Term of this Lease be damaged or destroyed, regardless
of cause, Tenant shall give prompt notice of such damage or destruction to
Landlord. Tenant shall, promptly and with due diligence, repair and restore the
Premises or, in Tenant’s reasonable discretion, Tenant may

 

*                 Provided,
however, so long as Landlord has not delivered a notice of Termination of this lease
following an Event of Default hereunder with respect to Tenant’s failute to pay
Monthly Rent, Tenent shall have the right to apply all proceeds of [ILLEGIBLE] or
other similar event to the restoration of the Premises.

 

16

 

demolish
and clear the Improvements and Permanent Improvements damaged so that the
Premises are in a safe and sightly condition. Tenant shall hold Landlord free
and harmless from any and all liability resulting from such repairs and
restoration. Tenant shall pay for any cost of repair or restoration in excess
of the proceeds available from insurance policies procured by Tenant. No such
partial or total destruction of the Premises shall result in any abatement or
reduction in rent and other charges payable by Tenant hereunder.

 

Section 15. 

 

CONDEMNATION

 

In the event that the Premises (or such material portion thereof as
shall render the remainder of the Premises unsuitable for its intended
purposes) shall be taken or appropriated by eminent domain or shall be
condemned for any public or quasi-public use, then (and in any such event),
this Lease and the term hereof may be terminated at the election of Tenant by a
notice in writing of its election so to terminate which shall be given to
Landlord within thirty (30) days of the date upon which Tenant shall have been
deprived of the use of the Premises by such taking, appropriation or
condemnation.

 

This Lease and the term hereof shall terminate in accordance with the
immediately preceding paragraph on or retroactively as of the date on which
Tenant shall be deprived of the use of the Premises as aforesaid. In the event
of any such termination, this Lease and the term hereof shall expire as of such
effective termination date as though that were the original expiration date of
the Term, and the Monthly Rent and all additional charges hereunder shall be
apportioned as of such date.

 

If this Lease is not terminated as the result of any taking or
condemnation. Tenant will, with reasonable diligence, either restore the
remainder of the Premises as nearly as practicable to the same condition as
obtained prior to such taking, appropriation or condemnation, or raze the
remaining Improvements and restore the Premises to a safe and sightly
condition, in which event a just proportion of the Monthly Rent, according to
the nature and extent of the taking, appropriation or condemnation and the
resulting permanent injury to the Premises and the means of access thereto,
shall be permanently abated.

 

Notwithstanding anything to the contrary contained in this Section 15,
in the event of a taking of the entire Premises, the total condemnation
compensation and damages awarded shall be distributed as follows:

 

A.                                   Landlord shall first receive an amount equal
to the greatest of:

 

(i)                                     amounts payable under a bona fide
institutional first mortgage (or first mortgage from a non-institutional entity
or individual on terms consistent with those then available in the relevant
market) which then affects all or any part of the Premises. For the purposes
hereof, Landlord agrees that the amount payable with respect to any such first
mortgage affecting the

 

17

 

Premises shall not exceed a principal amount calculated on the basis of
1:15 to 1 debt service coverage ratio; and

 

(ii)                                  the value of the Premises determined on an
income capitalization basis. For the purposes of determining income available
from the Premises demised hereunder, the actual rent payable by Tenant
hereunder during the remainder of the Term (but for such earlier termination)
shall be utilized to determine income; thereafter, rent for the Premises shall
be calculated at fair market rental value; and

 

(iii)                               the residual value of the Premises, as of the
expiration of the Term (exclusive of any Extension Periods not yet exercised or
exercisable), but for such early termination.

 

B.                                     From the remainder of the award after payment
to Landlord, Tenant shall receive an amount equal to the sum of (i) the
unamortized value (as of the date of such taking) of Tenant’s Improvements,
amortized on a straight-line basis over the entire term of this Lease,
excluding any Extension Periods not yet exercised or exercisable, and (ii) the
value of Tenant’s leasehold interest through the original expiration date of
the Term (exclusive of any Extension Periods not yet exercised or exercisable).

 

C.                                     All remaining amounts of the award shall be
allocated and paid to Landlord and Tenant upon the applicable proportion of
each party in the award made pursuant to A and B hereof.

 

In the event of a partial taking of any portion of
the Premises, Landlord and Tenant shall share equitably in the total
condemnation compensation and damages awarded in connection therewith. The
calculation of each party’s equitable share shall be made using the principles
implicit in subparagraphs A and B of this Section 15, with the amounts
determined under said subparagraphs A and B, respectively, to be appropriately
allocated between the Tenant and the Landlord to the extent of compensation
actually received. Any disputes between Landlord (or its mortgagee) and Tenant
under this Section 15 shall be resolved by binding arbitration under the
accelerated rules of the American Arbitration Association.

 

Section 16.

 

ASSIGNMENT AND SUBLETTING

 

16.1                      Tenant’s Right of Assignment and Subletting. Tenant shall not voluntarily or by
operation of law or otherwise transfer, sell, assign or sublease (collectively “Transfer”)
Tenant’s 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, in each case, first obtaining the written consent of
Landlord, which consent shall not be unreasonably withheld or delayed, except
that, provided Landlord has not delivered a notice of termination of this Lease
following an Event of Default hereunder with respect to Tenant’s failure to pay
Monthly Rent,

 

18

 

the
consent of Landlord shall not be required in connection with an arms’ length
sublease, license or concession of less than 25% of the Premises (for the uses
permitted hereunder), or a Transfer of all or any portion of this Lease or the
Premises to (a) an Affiliate of Tenant (for so long as, and provided such
entity remains an Affiliate of Tenant), or (b) any corporation or other
entity into which or with which Tenant merges or consolidates, or (c) to
any person or entity acquiring all or substantially all of the assets or stock
(and at least three (3) other family amusement centers) of Tenant
operating under the same trade name of Tenant as of the date of such Transfer.
It shall not constitute a Transfer hereunder and no consent of Landlord shall
be required for (i) Tenant to sell, assign, or otherwise transfer all or a
portion of any shares of stock, partnership interests, limited liability
company membership interests, or other ownership interests in Tenant to Tenant’s
lender or in connection with any public offering or, in connection with one or
a series of transactions, the transfer of less than a majority of such
interests, or (ii) any constituent partners, members, owners, limited
partners, or other persons or entities having an ownership interest in Tenant
to transfer shares of stock, partnership interests, limited liability company
membership interests, or other constituent ownership interests, in Tenant or
any Affiliate of Tenant between (or to family trusts for the benefit of) themselves,
their Affiliates or their family members. With respect to any Transfer by
Tenant to any person or entity not requiring Landlord’s consent, Tenant shall
notify Landlord of such Transfer in writing prior to making such Transfer,
which notification shall provide reasonably detailed documentation regarding
such transfer in support of Tenant’s claim that Landlord’s consent is not
required in connection therewith. 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” shall 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
requiring Landlord’s consent that is made without Landlord’s consent shall be
voidable and, at Landlord’s election, shall constitute a default under this
Lease. 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 reasonable criteria of Landlord, 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. Any assignment,
sublease or other Transfer shall be subject to all terms and conditions of this
Lease including, without limitation, the obligation to use the Premises for the
uses permitted hereunder.

 

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 Landlord’s
assumption of Tenant’s sublease(s) of the Premises under this Section, Tenant’s
surrender of this Lease, or the termination of this Lease in any other manner.
No sublease shall extend beyond the Term of this Lease.

 

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

 

19

 

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. It is expressly understood and agreed that any assignment by
Tenant to its leasehold mortgagee of such sublease rents shall be subject and
subordinate to the prior rights of Landlord to such rents.

 

16.4                      Continuing Obligation of Tenant. No Transfer shall release Tenant or change
Tenant’s primary liability to pay the rent and to perform all other obligations
of Tenant under this Lease unless Landlord explicity and in writing releases
Tenant of further liability and obligations. 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. Notwithstanding anything to the
contrary set forth herein. Tenant shall be released from all liability
hereunder accruing subsequent to an assignment of this Lease to the extent
Tenant’s assignee shall provide evidence reasonably satisfactory to Landlord of
a net worth of at least ONE HUNDRED MILLION DOLLARS (£100.000,000.00)
(increased annually by percentage changes in the CPI), as determined in accordance
with generally accepted accounting principles. Nothing herein shall constitute
the release of Tenant from any obligations under this Lease which accrued prior
to such assignment.

 

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                      Subleases. Any sublease of all or any portion of the Premises shall be subject
to the following: (i) each such sublease shall expressly be made subject
to the provisions hereof, (ii) the term of any subletting shall not extend
beyond the Term of this Lease, (iii) no sublease shall affect or reduce any
obligation of the Tenant or right of the Landlord hereunder, and (iv) all
obligations of the Tenant hereunder shall continue in full force and effect as
the obligations of a principal and not of a guarantor or surety, as though no
subletting had been made. Tenant shall, within 10 days after the execution of
any sublease, deliver a conformed copy thereof to Landlord.

 

For and with respect to a sublease of the entire Premises executed with
a bona fide unrelated subtenant on an arms length basis and on rental and other
terms consistent with then market conditions, Landlord shall execute a
non-disturbance agreement providing that Landlord, for itself, its successors
and assigns, subject to the observance and performance by the subtenant under
such sublease of all of the terms, covenants and conditions thereunder, will
covenant not to disturb the quiet and peaceful enjoyment of such subtenant in
the event of a cancellation or termination of this Lease. Furthermore, Landlord
shall not be liable in any way to subtenant for any act or omission, neglect or
default on the part of Tenant, as sublandlord under the sublease, or be
responsible for any moneys owing by or on deposit with Tenant to the credit of
subtenant, and subtenant shall not have the right to setoff or assert against
Landlord any such claim or any damages arising therefrom. Such non-disturbance
obligation of Landlord shall be contingent upon the payment of Monthly Rent by
the subtenant in an amount equal to the greater of the Monthly Rent payable
under this Lease or said sublease. Landlord agrees to enter into a

 

20

 

commercially
reasonable, recordable non-disturbance and recognition agreement setting forth
the terms and conditions of this Section 16.6.

 

16.7                           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, or mortgage the Premises. Notwithstanding
the foregoing. Landlord shall give Tenant written notice of any such assignment
or transfer, such notice to include the identity and address of the assignee or
transferee. Each assignment or transfer by Landlord of Landlord’s interest in
this Lease or the Premises prior to expiration or termination hereof shall be
subject to the terms and conditions of this Lease and shall relieve the grantor
of any obligations or liability as Landlord arising after the date of such
assignment or transfer, and Tenant shall look solely to Landlord’s successor in
interest for all obligations of Landlord arising after the date of such
assignment or transfer. Upon the written request of Tenant, Landlord’s
successor in interest shall assume in writing all of Landlord’s rights and
obligations arising after the date of such assignment or transfer and a copy of
such assumption shall be delivered to Tenant. Notwithstanding the foregoing,
even if Landlord and its transferee fail to deliver the foregoing written
assumption agreement to Tenant, the transferee of Landlord’s interest in this
Lease or the Premises, as applicable, 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. 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. Tenant’s quiet possession shall
not be disturbed if Tenant is not in default beyond the applicable cure period
hereunder.

 

Section 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 or any other
sum due hereunder within ten (10) days following written notice to Tenant
of such delinquency. Provided, however, if: (i) the Landlord shall have
sent to the Tenant two (2) notices of such default with respect to the
payment of Monthly Rent, even though the same shall have been cured and this
Lease not terminated; and (ii) during the same calendar year in which said
notices of default have been sent to Tenant, the Tenant shall thereafter
default in any subsequent payment of Monthly Rent—the same shall be deemed to
be an Event of Default upon the Landlord giving the Tenant written notice
thereof, without the ten (10) day grace period set forth above.

 

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 written notice has
been given to Tenant. If, however, the failure cannot reasonably be cured
within the foregoing thirty (30) day cure period, Tenant shall not be in
default of this Lease

 

21

 

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                  To the extent permitted by law, a general
assignment by Tenant for the benefit of creditors, or the filing by or against
Tenant of any proceeding under any insolvency or bankruptcy law, unless, in the
case of a proceeding filed against Tenant, 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, unless possession is restored to
Tenant 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.

 

17.1.4                  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.

 

17.2                           Landlord’s Remedies. To the extent permitted by applicable law,
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,
to the extent permitted by applicable law, 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 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                  Landlord shall give Tenant written notice of
termination to Tenant terminating 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 this 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 Landlord 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

 

22

 

exceeds the amount of the loss of rent that Landlord proves reasonably
could have been avoided; and

 

(iv)                              Any other amounts, including court costs,
necessary to compensate Landlord for all detriment proximately caused by Tenant’s
default.

 

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 often 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. To the extent any rent
payable hereunder is subject to adjustments pursuant to CPI or other relevant
index, the calculation of the award payable to Landlord pursuant to this Section 17.2.2
shall incorporate increases in rental amounts based upon CPI increases up to
the date of termination of this Lease.

 

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
shall use commercially reasonable efforts to relet the Premises. In connection
therewith, Landlord shall be entitled to take into account all relevant factors
which would be taken into account by a sophisticated developer in securing a
replacement tenant for the Premises, such as, but not limited to, the type of
businesses then being operated at the Premises, the financial responsibility of
any replacement tenant, and the highest and best use for the Premises. Landlord
may relet the Premises on whatever terms and conditions Landlord, in its sole
discretion, deems advisable. Landlord’s reletting of the Premises 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
refurbishing the Premises required by the reletting, advertisements and
reasonable repairs. At Landlord’s election, Tenant shall pay to Landlord the
rent due under this Lease on the dates the rent is due, Jess 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 Landlord’s own account unless Landlord has notified Tenant in writing
that this 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, alterations, brokerage commissions and legal
expenses incurred by Landlord in reletting; and (iii) 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 such date, Tenant will
pay to Landlord, in addition to the remaining

 

23

 

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 shall immediately become due
and payable to Landlord as additional rent.

 

17.2.5                  In all events, Tenant is liable for all
damages of whatever kind or 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, refurbishing 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.

 

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.

 

17.2.8                  Landlord shall be entitled to injunctive
relief in case of the violation, or attempted or threatened violation, of any
of the provisions hereof, or to a decree compelling performance of any of the
provisions hereof, or to any other remedy allowed to Landlord by law or equity.
Tenant hereby waives and surrenders for itself and all those claiming under it,

 

24

 

including
creditors of all kinds, (i) any right and privilege which it or any of
them may have to redeem any portion of the Premises or to have a continuance of
this Lease after termination of Tenant’s right of occupancy by order or
judgment of any court or by any legal process or writ, or under the terms of
this Lease, or after the termination of the term of this Lease as herein
provided, and (ii) the benefits of any law which exempts property from
liability for debt or for distress for rent.

 

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 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 Term of this Lease 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 Fleet Bank,
N.A. in effect on the date due plus two percent (2%) per annum; or (ii) the maximum rate permitted by law.
If Fleet Bank, 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 this 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,
which consent Landlord shall not unreasonably withhold or delay, Tenant will
have the right to assign or sublet its interest in this Lease, but Tenant will
not be released from liability under this Lease (except as otherwise
specifically provided in Section 16.4 hereof.)

 

25

 

17.7.2                  No structural changes to the Premises, the
Improvements or the Permanent Improvements shall be permitted without the prior
written approval of Landlord, which approval shall not be unreasonably withheld
or delayed.

 

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

 

Section 18.

 

RIGHT OF
INSPECTION

 

Landlord and Landlord’s authorized representatives
shall have the right after reasonable prior written notice to Tenant, to enter
upon the Premises at all reasonable business hours for the purpose of
inspecting the Premises or 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
this Lease.

 

If Tenant shall be in default in the observance or performance of any
term or covenant on Tenant’s part to be observed or performed under any of the
provisions of this Lease and the cure period, if any, applicable to said
default has expired, then, without thereby waiving such default, Landlord may,
but shall be under no obligation to, take all action, including, without
limitation, entry upon the Premises to perform the obligation of Tenant
hereunder immediately and without notice in the case of an emergency and upon
five (5) days’ notice to Tenant in other cases. All reasonable expenses
incurred by Landlord in connection therewith, including reasonable attorneys’
fees and expenses (including those incurred in connection with any appellate
proceedings), together with interest thereon at the rate set forth in Section 17.6
hereof from the date any such expenses were incurred by Landlord until the date
of payment by Tenant, shall constitute additional rent and shall be paid by
Tenant to Landlord upon demand.

 

26

 

Section 19.

 

WAIVER OF BREACH

 

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

 

Section 20.

 

NOTICES

 

20.1                           Notice Requirements. All [ILLEGIBLE] requests, or demands herein
provided to be given or made, or which may be given or made 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 age [ILLEGIBLE] the party to whom notice is being given; or (ii) on
the date delivered when sent via Mail, properly addressed and postage prepaid;
or (iii) seventy-two (72) hours after the time [ILLEGIBLE] is deposited in
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:

 

Bellwood Associates Limited Partnership 

c/o Lourie & Cutler 

60 State Street 

Boston, MA 02109 

Attn: William Eisen, Esq. 

Phone Number: (617) 742-6720 

Fax Number: (617) 742-5720

 

If to Tenant:

 

Festival Fun Parks, LLC

dba 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

 

27

 

With a copy to:

 

Paul, Hastings, Janofsky & Walker LLP 

Attn: Rick S. Kirkbride, Esq. 

555 South Flower Street, 23rd Floor 

Los Angeles, CA 90071 -2371 

Phone Number: (213) 683-6000 

Fax Number:  (213) 627-0705

 

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.

 

Section 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.

 

Section 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 replacements thereof, now or hereafter imposed by
Landlord upon the Premises; provided, however, that this Lease shall not be
subordinate to any Mortgage or any renewal, extension, or replacement thereof,
unless and until Landlord provides Tenant with a recordable 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 and reasonably 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, enter into with the holder of such interest, a
commercially reasonable subordination agreement or other document 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.

 

28

 

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 entered into 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 this 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
and has not paid rent for more than one (1) month in advance; that this
Lease constitutes the entire agreement between Tenant and Landlord relating to
the Premises; that Tenant has accepted the Premises and is in possession
thereof; that this 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 of this Lease; and such
other matters as may reasonably be requested. Landlord agrees to execute a
similar certificate or statement for Tenant’s benefit.

 

Section 23.

 

TENANT’S FINANCIAL STATEMENTS

 

Within one hundred twenty (120) days of the end of each fiscal year,
Tenant shall provide Landlord with Tenant’s profit and loss statement, balance
sheet, statement of changes in financial position, and notes to the financial
statements for the immediately preceding fiscal year, as reviewed or audited by
an independent certified public accountant or accounting firm. Tenant’s filing,
and delivering a copy to Landlord, of its current 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. If required
in connection with Landlord’s financing or sale of the Premises, upon at least
ten (10) days prior written notice from Landlord, Tenant shall provide
Landlord Tenant’s profit and loss statement and balance sheet for the most
recently completed fiscal quarter.

 

29

 

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 reasonable 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 by either party, 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.

 

24.2                           Party to Litigation. Tenant shall indemnify the Indemnified
Parties against and hold the Indemnified Parties harmless from all costs,
expenses, demands, and liability incurred by the Indemnified Parties if the
Indemnified Parties become or are 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 arising out of Tenant’s use of
the Premises; (iii) otherwise arising out of or resulting from any action
or transaction of Tenant or such other person arising out of Tenant’s use of
the Premises; or (iv) necessary to protect the Indemnified Parties’
interests 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.

 

24.4                           Consent. Landlord shall have no liability for damages resulting from, nor may
Tenant terminate this Lease as a “result of, 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. Tenant shall be
entitled to damages (but not termination) in the event it shall be determined
by a court of competent jurisdiction that Landlord withheld its consent in bad
faith.

 

Section 25.

 

LANDLORD’S
CONSENT TO LEASEHOLD MORTGAGE PROVISIONS

 

25.1                           Notwithstanding any provisions to the
contrary contained in this Lease, Tenant may enter into certain financing
arrangements with certain institutional lenders including, without limitation,
a group of Lenders for which Fleet Capital Corporation (“Fleet”), is acting as
administrative and collateral agent (Fleet or its successor, in such capacity, “Agent”)
(collectively, all of the foregoing shall be referred to herein as the “Lenders”),
and, in connection therewith, may be required to secure all obligations,
indebtedness and liabilities under such

 

30

 

financing
arrangements by granting a mortgage, deed of trust, collateral assignment of the
Lease, or any other documentation reasonably required in connection with such
financing (each a “Leasehold Mortgage” and collectively, “Leasehold Mortgages”)
with respect to its interest in this Lease and in the Premises.

 

25.2                           Tenant is given the right by Landlord to
enter into any recordable Leasehold Mortgage to the extent the same is solely
limited to the leasehold interest of Tenant and does not increase the rights of
the Lenders beyond the leasehold interest of Tenant in the Premises. Notwithstanding
the foregoing, except as otherwise provided by this Consent: (a) it is expressly
understood that such consent to the execution and recordation of a Leasehold Mortgage
by Tenant does not constitute approval by Landlord of any of the provisions of
that Leasehold Mortgage; and (b) if there is a conflict between a
Leasehold Mortgage and this Lease, the terms of this Lease shall control.

 

25.3                           If Tenant mortgages or grants to Lenders a
security interest in Tenant’s interest in this Lease and the Premises, and if
such Lenders send to Landlord a true copy of the Leasehold Mortgage executed in
connection therewith, together with a written notice specifying the name and
address of such Lenders (or Agent, in the case of Fleet), so long as such
Leasehold Mortgage shall remain unsatisfied of record or until written notice
of satisfaction is given by the holder to Landlord, the following provisions
shall apply.

 

25.3.1                  There shall be no cancellation, surrender,
acceptance of surrender, amendment, or modification of the Lease by joint
action of Landlord and Tenant, or by Tenant alone, without in each case,
written notice to Lenders. Nor shall any merger result from the acquisition by,
or devolution upon, any one entity of the fee and the leasehold estates of the
Premises.

 

25.3.2                  Landlord shall, upon serving Tenant with any
notice or other communication, whether of default or any other matter,
simultaneously serve a copy of such notice upon Lenders. However, Landlord’s
failure to deliver such notice to the Lenders shall not constitute a default or
breach by Landlord under this Lease. Nevertheless, Landlord may not undertake
any action to enforce any of its rights under this Lease in connection with the
notice given to Tenant unless and until a copy of the same is served upon the
Lenders.

 

25.3.3                  In the event of any default by Tenant under
the Lease, the Lenders shall have, after service of notice of such default, the
same period to remedy or cause to be remedied the default complained of as
Tenant has under this Lease, and Landlord shall accept such performance by or
at the instigation of the Lenders as if the same had been rendered by Tenant.
Each notice of default given by Landlord shall state the amounts of rent and
whatever other payments are being claimed to be in default.

 

25.3.4                  Landlord agrees that (i) the Lenders
shall have the right, but not the obligation, to remedy any default by Tenant
under this Lease by performing any applicable term, covenant, condition or
agreement of this Lease, and (ii) Landlord shall accept such performance
by Agent with the same force and effect as if furnished by Tenant, subject to
and in accordance with the provisions of this Lease.

 

31

 

25.3.5                  No more often than two times during any
twelve month period. Landlord, within ten (10) business days after a
request in writing by Tenant or the Lenders, shall furnish a written statement,
duly acknowledged, that this Lease is in full force and effect and that there
are no defaults thereunder by Tenant, or if there are any defaults, such
statement shall specify the defaults Landlord claims to exist.

 

25.3.6                  Landlord hereby consents to: (i) Lenders’
foreclosure of any Leasehold Mortgage, (ii) any sale of Tenant’s interest
in this Lease and the Premises in connection with such foreclosure, whether by
judicial proceedings or by virtue of any power of sale contained in that
Leasehold Mortgage, (iii) any conveyance of Tenant’s interest in this
Lease and the Premises from Tenant to Lenders, or its nominee or designee, by
virtue of or in lieu of foreclosure or other appropriate proceedings, and (iv) if
Lenders, or its nominee or designee, becomes the holder of Tenant’s interest in
this Lease and the Premises, (A) the conveyance of such interest by the
Lenders, or its nominee or designee, to another creditworthy amusement park operator
that meets Landlord’s approval, which approval shall not be unreasonably
delayed or denied, and will be based upon Landlord’s customary review and
evaluation of the prospective tenant, or (B) any other conveyance in
accordance with the terms of the assignment provisions of the lease then in
effect between Landlord and such tenant with respect to the Premises (which shall
be the same as those contained in this Lease, except that all obligations and
liabilities of the Lenders, or its nominee or designee, under such lease shall
cease and terminate upon such assignment).

 

Section 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 as of
the date of execution of this Lease or thereafter incurred (or suffered to be incurred).

 

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.

 

32

 

Section 27. 

 

HAZARDOUS MATERIAL

 

27.1                           Tenant’s Responsibility for Hazardous
Materials. Tenant shall not 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 consent Landlord shall not
unreasonably withheld as long as Tenant demonstrates to Landlord’s reasonable
satisfaction that such Hazardous Material is necessary or useful for Tenant’s
business and will be used, kept, and stored in a manner that complies with all Environmental
Laws). If Tenant breaches the obligations stated in the preceding sentence, or
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 has otherwise occurred, then Tenant shall
indemnify, defend, and hold the Indemnified Parties 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
this Lease as a result of such contamination. This indemnification of the
Indemnified Parties 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, on, upon or under the Premises, including, without limitation, on
or under the soil or ground water on or under the Premises. Without limiting
the foregoing, 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. Tenant, at its sole cost and
expense, shall comply with all Environmental Laws applicable to the Premises
during the entire Term (including any Extension Periods).

 

27.2                           Remediation. Except with Landlord’s prior written consent. Tenant shall not
commence any remediation, removal or other work with respect to Hazardous
Materials at, on, upon or under the Premises or enter into any settlement
agreement, consent decree or other compromise relating to any Hazardous
Materials or Environmental Laws which might, in Landlord’s sole judgment,
impair the value of the Premises.

 

27.3                           Survival. Provisions of this Section 27 shall survive termination of tenancy.

 

Section 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.

 

33

 

COMMERCIAL GROUND LEASE

 

EXHIBIT ”A”

 

LEGAL DESCRIPTION OF REAL
PROPERTY

 

	
  PREMISES
  LOCATION:

  	
   

  	
  WATER
  COUNTRY

  
	
   

  	
   

  	
  2300
  LAFAYETTE ROAD

  
	
   

  	
   

  	
  PORTSMOUTH,
  NEW HAMPSHIRE

  

 

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

 

1

 

Exhibit A

 

The following certain tracts or parcels of land (Parcels 1-6) with the
buildings and improvements thereon situated in Portsmouth, County of Rockingham,
State of New Hampshire, more particularly bounded and described as follows:

 

Parcels 1 and 2:

 

Parcels 1 and 2 being certain tracts or parcels of land located in the
City of Portsmouth, County of Rockingham, State of New Hampshire, and being
shown as Lots 1 and 2 on a plan entitled “Lot Line Elimination Plan for
Bellwood Associates Limited Partnership Lafayette Road Constitution Avenue
County of Rockingham Portsmouth New Hampshire,” dated September 3, 1991,
Scale: 1” = 100’, prepared by Richard P. Millette & Associates, said
plan being recorded in the Rockingham County Registry of Deeds as Plan D-21288,
and described as follows:

 

Parcel 1:  Beginning at a point approximately 500 feet,
more or less, southerly of West Road (so-called) at the southerly corner of
property now or formerly of Philip Singer & Michael Simchik and the corner
of a stone wall at the northerly corner of property now or formerly of John
Stef, running S 43° 25’ 43” “along said stone wall a distance of 54.31 feet to
a point in said stone wall; thence continuing S 52° 18’ 30” W along said stone
wall a distance of 51.50 feet to a point in said stone wall; thence continuing
S 55° 58’ 32” W along said stone wall a distance of 192.20 feet to a point in
said stone wall at the corner of property now or formerly of John Stef; thence
turning and running S 24° 08’ 28” E along said stone wall a distance of 81.60
feet to a point at Lafayette Road; thence turning and running S 74° 30’ 31” W
91.50 feet along Lafayette Road to a point; thence continuing S 75° 49’ 32” W
118.00 feet along Lafayette Road to a point; thence continuing S 73° 02’ 41” W
442.30 feet to an iron pipe found at the corner of property now or formerly of
Indian Head National Bank of Portsmouth and the northerly side of Lafayette
Road (U.S. Route 1) so-called; thence turning and running N 32° 58’ 20” W along
said Indian Head Bank land 295.13 feet to an iron pipe found; thence continuing
N 32° 57’ 16” W along land now or formerly of Exeter Lafayette Trust 173.83
feet to an iron pipe found; thence continuing N 32° 57’ 16” W along said Exeter
Lafayette Trust land a distance of 259.25 feet to a point; thence continuing N
36° 16’ 03” W along said Exeter Lafayette Trust land a distance of 627.51 feet
to a point at land described herein as Parcel 2; thence running N 56° 21’ 38” E
along said Parcel 2 a distance of 34.52 feet to a point at a wire fence; thence
turning and running N 40° 51’ 30” W along said wire fence and Parcel 2 a
distance of 1,417.1 feet to an iron pipe at land now or formerly of John lafolla
Company, Inc. (herein “Iafolla”); thence turning and running N 79° 40’ 36”
E along said Iafolla land a distance of 133.28 feet to a drill hole in a stone
wall; thence continuing N 71° 50’ 21” E along said stone wall and said Iafolla
land a distance of 155.20 feet to an iron pipe in said stone wall; thence
continuing N 61° 02’ 15” E along said stone wall and said Iafolla land a
distance of 58.00 feet to a nail in the corner of said stone wall and Iafolla
land and the cornr of said Iafolla land; thence turning and running S 43 ° 51’
25” E along said stone wall and said Iafolla land 112.24 feet to an iron pipe
in said stone wall; thence continuing S 44° 21’ 54” E along said stone wall and
said Iafolla land a distance of 228.42 feet to an iron pipe in

 

 

said
stone wall; thence continuing S 42° 23’ 35” E along said stone wall and said Iafolla
land a distance of 315.92 feet to an iron pipe; thence continuing S 37° 35’ 12”
E along said Iafolla land in part along a stone wall a distance of 256.82 feet
to a drill hole found in said stone wall; thence continuing S 43° 11’ 46” E
along said stone wall and said Iafolla land a distance of 115.43 feet to a
drill hole found in said stone wall; thence continuing S 33° 29’ 04” E along
said stone wall and said Iafolla land a distance of 117.52 feet to an iron pipe
found; thence turning and running N 52° 53’ 13” E along said Iafolla land a
distance of 259.84 feet to a point at the corner of said Iafolla land and land
now or formerly of Robert J. Iafolla (and known as Parcel 3 herein); thence
turning and running S 47° 42’ 17” E in part along land now or formerly of said
Robert J. Iafolla (Parcels 3 and 4 herein), land now or formerly of Ferris G.
Bavicchi (Parcel 5 herein), and land now or formerly of Michael R. Iafolla
(Parcel 6 herein) a distance of 1,380.67 feet to an iron rod found at the point
where the southerly corner of property now or formerly of said Michael R. Iafolla
(Parcel 6 herein), the westerly boundary of property now or formerly of Philip
Singer and Michael Simchik intersect; thence turning and running S 44° 02’ 19”
W along said Singer and Simchik property a distance of 50.02 feet to a point;
thence turning and running S 47° 42’ 17” E along said Singer and Simchik
property a distance of 299.25 feet to land now or formerly of John Stef, said
point being the point of beginning.

 

Parcel
1 is being conveyed
with the benefit of the following appurtenant easements:

 

A.                                   “Together with all of the Grantor’s interest,
if any, in a right-of-way to the above- described property across land now or
formerly of Arthur Altschuler and Irwin Cooperman, Trustees of Exeter Lafayette
Trust, resulting from a reservation contained in a deed from Jacob S. Ciborowski
to Arthur Altschuler and Irwin Cooperman, Trustees of Exeter Lafayette Trust
dated November 2, 1971, recorded in the Rockingham County Registry of
Deeds at Book 2104, Page 305. Nothing herein shall be deemed to create a
right-of-way where none existed before the date of this instrument. Without
limiting the generalities of the preceding sentence, there is no right-of-way
over any other property owned by Henry J. Ciborowski on the date of this
instrument. Grantor makes no warranties to grantee as to the existence of any
right-of-way.” Said easement being quoted from and described in the deed into
Bellwood Associates Limited Partnership recorded at Book 2718, Page 1249.

 

B.                                     “Also conveying herein a right-of-way running
from West Road, so-called, to the conveyed premises, said right-of-way running
across Lot 23 and being more particularly described as follows:

 

Commencing on the southwesterly sideline of West Road at a point on the
boundary between Lots 23 and 24; thence proceeding South 44° 02’ 19” West along
said boundary line between Lots 23 and 24 a distance of 450.21 feet to a point
at the corner of Lots 23, 24 and 25; thence turning and running North 47° 42’ 17” West
along the boundary line between Lots 25 and 23 a distance of 60 feet to a
point; thence turning and running North 44° 02’ 19” East to the southwesterly
sideline of West Road; thence turning and running South 47° 42’ 17” East a
distance of 60 feet to the point of beginning.

 

 

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 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.

 

34

 

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 Landlord’s expense; 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 Premises
(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. Landlord and Tenant warrant and represent
that all information provided to each other is accurate and correct and Tenant
acknowledge that each such party has relied upon such information in entering
into this Lease.

 

28.15                     Right of First Negotiation. Notwithstanding anything to the contrary contained
in this Lease, and without in any manner affecting or limiting any of the
rights, privileges, options or estates granted to Tenant under this Lease,
Tenant shall have the first right to negotiate to purchase in the event
Landlord elects to market, sell or otherwise convey the Premises or the
controlling interest in Landlord (collectively, “Landlord’s Interest”) to Third
Parties (hereinafter defined). Tenant’s first rights to negotiate shall
terminate in the event Landlord’s Interest shall have been sold to a Third
Party in accordance with the terms and conditions of this Section 28.15.

 

In the event Landlord shall have elected to market Landlord’s Interest
to Third Parties, Landlord shall notify Tenant in writing of the price and other
basic business terms upon which Landlord is willing to sell. If Tenant desires
to purchase Landlord’s Interest at such price and upon such other terms and
conditions, then within twenty (20) business days after receipt of Landlord’s
notice (such twenty (20) business day period being hereinafter referred to as
the “20-Day Notice Period”), Tenant shall deliver written notice to Landlord (“Tenant’s
Negotiation Notice”) indicating that Tenant desires to so purchase. In the
event Tenant delivers Tenant’s Negotiation Notice within the 20-Day Notice
Period, then within the twenty (20) business day period following Landlord’s
receipt of Tenant’s Negotiation Notice (such twenty (20) business day period
being hereinafter referred to as the “20-Day Negotiation Period”), Landlord and
Tenant shall enter into a commercially reasonable purchase and sale agreement
setting forth, inter alia, such price and basic business terms and conditions.

 

In the event (i) Tenant does not deliver Tenant’s Negotiation
Notice to Landlord within the 20-Day Notice Period, or (ii) Tenant
delivers notice to Landlord of Tenant’s election not to purchase Landlord’s
Interest, then, for the twelve (12) month period beginning with the day
immediately following the expiration of the 20-Day Notice Period, Tenant’s
first right to negotiate with respect to the purchase of Landlord’s Interest
shall be null and void and of no

 

35

 

further
force and effect, and during such twelve (12) month period, Landlord shall have
the right to proceed with the marketing and sale of Landlord’s Interest for a
price not more than 5% less than that last offered Tenant and upon materially
the same other basic terms and conditions. In the event Landlord shall not have
entered into a purchase and sale agreement for the sale of Landlord’s Interest
prior to the expiration of such twelve (12) month period, or if Landlord shall
offer Landlord’s Interest for sale for a price more than 5% less than that
offered Tenant and/or on materially more favorable terms and conditions, Tenant’s
right to enter into negotiations for such purchase shall automatically be
reinstated upon the terms and conditions herein provided.

 

For purposes of this Section 28.15, “Third Party” or “Third
Parties” shall mean any person, partnership, firm or corporation not
controlling, controlled by, or under control with Landlord or another entity
controlled by Landlord. Furthermore, Tenant’s first right to negotiate shall
not apply in the case of a transfer between or among the partners or other
beneficial owners of Landlord or to members of their respective families,
whether by intervivos transfer, by will, in accordance with law in the event of
death, or otherwise.

 

In the event Tenant and Landlord shall enter into a purchase and sale
agreement for Landlord’s Interest in accordance with the terms hereof, Tenant
shall deposit with Landlord ten percent (10%) of the purchase price as security
for Tenant’s obligation to purchase Landlord’s Interest in accordance with such
agreement (such amount to be applied to the purchase price at closing). If
Tenant shall default in its obligation to purchase the Premises in accordance
with the terms of the purchase and sale agreement, then Landlord shall have the
right to retain said 10% deposit as liquidated damages.

 

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.

 

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.

 

28.18                     Landlord’s Liability. Notwithstanding anything to the contrary
contained in this Lease, there shall be absolutely no personal liability of any
member, manager, partner, stockholder, officer, director, agent or employee of
Landlord or of any successor or assign of Landlord, with respect to the terms,
covenants and provisions of this Lease, and Tenant shall look solely to the
interest of the Landlord, its successors and assigns, in the Premises for the satisfaction
of each and every remedy of Tenant in the event of any breach by Landlord (or
by such successor or assign) of any of the terms, covenants and provisions of
this Lease to be

 

36

 

observed
or performed by Landlord hereunder, such exculpation of personal liability to
be absolute and without any exception whatsoever.

 

28.19                     No Brokerage. Each of the Landlord and the Tenant
represents and warrants to the other that it has not dealt with any broker in
connection with the transactions described in this Lease, and indemnifies the
other against the claims of any broker claiming through it.

 

28.20                     Waiver of Jury Trial. LANDLORD AND TENANT HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS LEASE.

 

28.21                     Holding Over. Any holding-over by the Tenant after the
expiration of the Term of this Lease shall be treated as a tenancy at
sufferance at two (2) times the Monthly Rent and other charges specified
herein (and if varying rates are specified herein, at two (2) times the highest
such rate), pro rated on a daily basis, and shall otherwise be on the terms and
conditions set forth in this Lease, so far as applicable. In the event that the
Landlord and the Tenant are engaged in good faith negotiations as evidenced by
the Tenant having executed and delivered to the Landlord an extension agreement
drafted by the Landlord specifically for the extension of this Lease, the
Tenant shall not be treated as holding-over during the period covered by the extension
agreement.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  Bellwood
  Associates, L.P.,

  	
  Festival
  Fun Parks, LLC,

  
	
  a
  Massachusetts limited partnership

  	
  a
  Delaware limited liability company

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Richard P. Samuels

  	
   

  	
  By:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  RICHARD P. SAMUELS

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  CFO

  	
   

  

 

37

 

Exhibit A

 

The following certain tracts or parcels of land (Parcels 1-6) with the
buildings and improvements thereon situated in Portsmouth, County of
Rockingham, State of New Hampshire, more particularly bounded and described as
follows:

 

Parcels 1 and 2:

 

Parcels 1 and 2 being certain tracts or parcels of land located in the
City of Portsmouth, County of Rockingham, State of New Hampshire, and being
shown as Lots 1 and 2 on a plan entitled “Lot Line Elimination Plan for
Bellwood Associates Limited Partnership Lafayette Road Constitution Avenue
County of Rockingham Portsmouth New Hampshire,” dated September 3, 1991,
Scale: 1” = 100’, prepared by Richard P. Millette & Associates, said
plan being recorded in the Rockingham County Registry of Deeds as Plan D-21288,
and described as follows:

 

Parcel 1:  Beginning at a point approximately 500 feet,
more or less, southerly of West Road (so-called) at the southerly corner of
property now or formerly of Philip Singer & Michael Simchik and the
corner of a stone wall at the northerly corner of property now or formerly of
John Stef, running S 43° 25’ 43” “along said stone wall a distance of 54.31
feet to a point in said stone wall; thence continuing S 52° 18’ 30” W along
said stone wall a distance of 51.50 feet to a point in said stone wall; thence
continuing S 55° 58’ 32” W along said stone wall a distance of 192.20 feet to a
point in said stone wall at the corner of property now or formerly of John
Stef; thence turning and running S 24° 08’ 28” E along said stone wall a
distance of 81.60 feet to a point at Lafayette Road; thence turning and running
S 74° 30’ 31” W 91.50 feet along Lafayette Road to a point; thence continuing S
75° 49’ 32” W 118.00 feet along Lafayette Road to a point; thence continuing S
73° 02’ 41” W 442.30 feet to an iron pipe found at the corner of property now
or formerly of Indian Head National Bank of Portsmouth and the northerly side
of Lafayette Road (U.S. Route 1) so-called; thence turning and running N 32° 58’
20” W along said Indian Head Bank land 295.13 feet to an iron pipe found;
thence continuing N 32° 57’ 16” W along land now or formerly of Exeter
Lafayette Trust 173.83 feet to an iron pipe found; thence continuing N 32° 57’
16” W along said Exeter Lafayette Trust land a distance of 259.25 feet to a
point; thence continuing N 36° 16’ 03” W along said Exeter Lafayette Trust land
a distance of 627.51 feet to a point at land described herein as Parcel 2;
thence running N 56° 21’ 38” E along said Parcel 2 a distance of 34.52 feet to
a point at a wire fence; thence turning and running N 40° 51’ 30” W along said
wire fence and Parcel 2 a distance of 1,417.1 feet to an iron pipe at land now
or formerly of John lafolla Company, Inc. (herein “Iafolla”); thence
turning and running N 79° 40’ 36” E along said Iafolla land a distance of
133.28 feet to a drill hole in a stone wall; thence continuing N 71° 50’ 21” E
along said stone wall and said Iafolla land a distance of 155.20 feet to an
iron pipe in said stone wall; thence continuing N 61° 02’ 15” E along said
stone wall and said Iafolla land a distance of 58.00 feet to a nail in the
corner of said stone wall and Iafolla land and the cornr of said Iafolla land;
thence turning and running S 43 ° 51’ 25” E along said stone wall and said Iafolla
land 112.24 feet to an iron pipe in said stone wall; thence continuing S 44° 21’
54” E along said stone wall and said Iafolla land a distance of 228.42 feet to
an iron pipe in

 

 

said
stone wall; thence continuing S 42° 23’ 35” E along said stone wall and said
Iafolla land a distance of 315.92 feet to an iron pipe; thence continuing S 37°
35’ 12” E along said Iafolla land in part along a stone wall a distance of 256.82
feet to a drill hole found in said stone wall; thence continuing S 43° 11’ 46”
E along said stone wall and said Iafolla land a distance of 115.43 feet to a
drill hole found in said stone wall; thence continuing S 33° 29’ 04” E along
said stone wall and said Iafolla land a distance of 117.52 feet to an iron pipe
found; thence turning and running N 52° 53’ 13” E along said Iafolla land a
distance of 259.84 feet to a point at the corner of said Iafolla land and land
now or formerly of Robert J. Iafolla (and known as Parcel 3 herein); thence
turning and running S 47° 42’ 17” E in part along land now or formerly of said
Robert J. Iafolla (Parcels 3 and 4 herein), land now or formerly of Ferris G.
Bavicchi (Parcel 5 herein), and land now or formerly of Michael R. Iafolla
(Parcel 6 herein) a distance of 1,380.67 feet to an iron rod found at the point
where the southerly corner of property now or formerly of said Michael R.
Iafolla (Parcel 6 herein), the westerly boundary of property now or formerly of
Philip Singer and Michael Simchik intersect; thence turning and running S 44°
02’ 19” W along said Singer and Simchik property a distance of 50.02 feet to a
point; thence turning and running S 47° 42’ 17” E along said Singer and Simchik
property a distance of 299.25 feet to land now or formerly of John Stef, said
point being the point of beginning.

 

Parcel
1 is being conveyed
with the benefit of the following appurtenant easements:

 

A.                                   “Together with all of the Grantor’s interest,
if any, in a right-of-way to the above- described property across land now or
formerly of Arthur Altschuler and Irwin Cooperman, Trustees of Exeter Lafayette
Trust, resulting from a reservation contained in a deed from Jacob S.
Ciborowski to Arthur Altschuler and Irwin Cooperman, Trustees of Exeter
Lafayette Trust dated November 2, 1971, recorded in the Rockingham County
Registry of Deeds at Book 2104, Page 305. Nothing herein shall be deemed
to create a right-of-way where none existed before the date of this instrument.
Without limiting the generalities of the preceding sentence, there is no
right-of-way over any other property owned by Henry J. Ciborowski on the date
of this instrument. Grantor makes no warranties to grantee as to the existence
of any right-of-way.” Said easement being quoted from and described in the deed
into Bellwood Associates Limited Partnership recorded at Book 2718, Page 1249.

 

B.                                     “Also conveying herein a right-of-way running
from West Road, so-called, to the conveyed premises, said right-of-way running
across Lot 23 and being more particularly described as follows:

 

Commencing on the southwesterly sideline of West Road at a point on the
boundary between Lots 23 and 24; thence proceeding South 44° 02’ 19” West along
said boundary line between Lots 23 and 24 a distance of 450.21 feet to a point
at the corner of Lots 23, 24 and 25; thence turning and running North 47° 42’ 17” West
along the boundary line between Lots 25 and 23 a distance of 60 feet to a
point; thence turning and running North 44° 02’ 19” East to the southwesterly
sideline of West Road; thence turning and running South 47° 42’ 17” East a
distance of 60 feet to the point of beginning.

 

 

Parcel 2: Beginning on the northerly side of Constitution Avenue at an iron rod
found at the corner of land now or formerly of Exeter Lafayette Trust, thence
running along a curve to the left having a radius of 810.00 feet an arc length
of 292.14 feet along said Constitution Avenue, so-called, to an iron rod found;
thence continuing N 39° 32’ 36” West along Constitution Avenue, so-called, a
distance of 470.03 feet to a point; thence continuing North 39° 30’ 19” W along
said Constitution Avenue, so-called, a distance of 292.52 feet to a point;
thence continuing along a curve to the left having a radius of 810.00 feet an
arc length of 429.80 feet along Constitution Avenue, so-called, to a point;
thence continuing along a curve to the right having a radius of 865.00 feet an
arc length of 138.00 feet along Constitution Avenue, so-called, to a point at
the corner of said Constitution Avenue, so-called, and land now or formerly of
the City of Portsmouth; thence turning and running North 37° 56’ 21” E along
said City of Portsmouth land a distance of 34.79 feet to a point; thence
turning and running N 56° 31’ 34” W along said City of Portsmouth land a
distance of 42.61 feet to a point at the corner of land now or formerly of the
City of Portsmouth and land now or formerly of TVC Realty Trust; thence turning
and running N 42° 13’ 00” E along said TVC Realty Trust land a distance of
21.37 feet to a point; thence turning and running N 72° 04’ 52” E along a wire
fence and said TVC Realty Trust land a distance of 135.31 feet to a point; thence
continuing N 73° 30’ 32” E along said TVC Realty Trust land a distance of
660.15 feet to a point at a wire fence, which point is at the boundary of
Parcel 1 described hereinabove; thence turning and running S 40° 51’ 30” E
1,401.38 feet along said wire fence and Parcel 1 to a point; thence turning and
running S 56° 21’ 38” W along Parcel 1 34.52 feet to a point at land now or
formerly of Exeter Lafayette Trust; thence turning and running S 56° 21’ 38” W
along said Exeter Lafayette Trust land and along an existing paved access road
a distance of 605.78 feet to an iron pipe found; thence continuing S 60° 53’ 49”
W along said Exeter Lafayette Trust land and said existing paved access road a
distance of 54.40 feet to an iron rod found at the corner of said Exeter
Lafayette Trust land and said existing paved access road and Constitution
Avenue, so-called, said point being the point of beginning.

 

Parcels
3, 4, 5 and 6:

 

Parcels 3,4,5 and 6 being certain tracts or parcels of land known as
Lots 1-23,1-24,1-26 and 1-27 on a certain plan entitled “Resubdivision
Lafayette West Phase II for Lafayette West Corp.” drawn by Underwood Engineers, Inc.,
recorded December 7, 1990 in the Rockingham County Registry of Deeds as
Plan D-20753, being bounded and described as follows:

 

Parcel 3 (Lot 1-23): Beginning at a point at the southerly side of said West Road, thence
running by and along said road, S 47° 42’ 17” E a distance of 609.66 feet, more
or less, to a point; thence turning and running S 44° 02’ 19” W a distance of
450.21 feet to a point at land known as Parcel 1 hereinabove; thence turning
and running along said Parcel 1 N 47° 42’ 17” W, a distance of 680.11 feet,
more or less, to an iron pipe set at a stone wall at land now or formerly of
John Iafolla Company, Inc.; thence turning and running N 52° 53’ 13” E a
distance of 457.80 feet to the point of beginning.

 

Parcel 4 (Lot 1-24): Beginning at a point at the southerly side
of West Road where Parcel 4 herein abuts Parcel 3 herein, thence running S 47°
42’ 17” E by and along said road, a distance of 200.00 feet to a point at land
known as Parcel 5 herein; thence turning and running S 44° 02’

 

 

19”
“W, a distance of 450.21 feet along said Parcel 5 to a point at land known as
Parcel 1 herein; thence turning and running N 47D 42’ 17” W, a distance of 200.00
feet along said Parcel 1 to a point at land known as Parcel 3 herein; thence
turning and running N 44° 02’ 19” E, a distance of 450.21 feet along said
Parcel 3 to the point of beginning.

 

Together with a right of way as set forth in a deed from Lafayette West
Associates to Robert J. Iafolla dated December 21, 1990, recorded in the
Rockingham County Registry of Deeds at Book 2862, Page 1732.

 

Parcel 5 (Lot 1-26): Beginning at a point on the southerly side of West Road where Parcel 5
herein abuts Parcel 4 herein, thence running S 47° 42’ 17” E, by and along said
road, a distance of 200.00 feet to a point at land known as Parcel 6 herein;
thence turning and running S 44° 02’ 19” W, a distance of 450.21 feet along
said Parcel 6 to a point at land known as Parcel 1 herein; thence turning and
running N 47° 42’ 17” W, a distance of 200.00 feet along said Parcel 1 to a
point at land known as Parcel 4 herein; thence turning and running N 44° 02’ 19”
E, a distance of 450.21 feet along said Parcel 4 to the point of beginning.

 

Parcel 6 (Lot 1-27): Beginning at a point on the southwesterly side of West Road where
Parcel 6 herein abuts Parcel 5 herein, thence running S 47° 42’ 17” E, by and
along said street, a distance of 200.00 feet to an iron pipe; thence continuing
S 47° 42’ 17” E by and along said street, a distance of 100 feet to an iron
pipe at land now or formerly of Singer and Simchik; thence turning and running
S 44° 02’ 19” W, a distance of 450.21 feet along said Singer and Simchik land
to an iron pipe at land known as Parcel 1 herein; thence turning and running N
47° 42’ 17” W, a distance of 100.00 feet along said Parcel 1 to an iron pipe;
thence continuing N 47” 42’ 17” W, a distance of 200.00 feet along said Parcel
1 to a point at land known as Parcel 5; thence turning and running N 44° 02’ 19”
E, a distance of 450.21 feet along said Parcel 5 to the point of beginning.

 

 

COMMERCIAL
GROUND LEASE

 

EXHIBIT ”B”

MEMORANDUM
OF LEASE

 

Recording
requested by, and 

after
recording return to:

 

Paul,
Hastings, Janofsky & Walker LLP 

Attn:
Rick S. Kirkbride, Esq. 

555
South Flower Street, 23rd Floor 

Los
Angeles, California 90071-2371

 

MEMORANDUM OF LEASE

 

This Memorandum of Lease is made and entered into as of May   ,
2000 by and between BELLWOOD ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts
limited partnership (“Landlord”), having an address of c/o Lourie &
Cutler, 60 State Street, Boston, MA 02109, and FESTIVAL FUN PARKS, LLC, a
Delaware limited liability company (“Tenant”), having an address of 18300 Von
Karmen Ave., Suite 900, Irvine, California 92614, 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:

 

WATER COUNTRY

2300 LAFAYETTE ROAD

PORTSMOUTH, NEW HAMPSHIRE

 

for
all initial term of Thirty-Four and One-Half (341/2) years,
commencing on the Commencement Date (as defined below). Tenant has three
options to extend the term of the Lease, the first such extension for a
sixty-six (66) month period and the second and third such extension for a sixty
(60) month period. The maximum term of the Lease with Tenant’s exercise of all
three extension periods is fifty (50) years.

 

1

 

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 Commercial
Ground Lease dated     , 2000 (the “Commencement Date”)
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.

 

3.                                       Right of First Negotiation. Pursuant to Section 28.15 of the
Lease, and subject to the terms and conditions set forth in the Lease, Tenant
holds a right of first negotiation to purchase the Premises.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Bellwood
  Associates Limited Partnership

  	
   

  	
  Festival
  Fun Parks, LLC,

  
	
  a
  Massachusetts limited partnership

  	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed,
  sealed, and delivered

  	
   

  	
  Signed,
  sealed, and delivered

  
	
  This                     day
  of

  	
   

  	
  This                   day
  of

  
	
  in
  the presence of:

  	
   

  	
  in
  the presence of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
  Witness

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
  Witness

  
									

 

2Exhibit 10.16

 

LEASE AND OPERATING
AGREEMENT

BOCA RATON AIRPORT

 

BETWEEN

 

BOCA RATON AIRPORT
AUTHORITY, LESSOR

 

AND

 

BOCA ARENA, INC, LESSEE

 

JUNE 12, 1991

 

 

W I T N E S S E T H:

 

WHEREAS, Lessor has
jurisdiction over the operation and maintenance of and improvements to the
State-owned land within the territorial limits of the City of Boca Raton, now
known as the “Boca Raton Airport” (the “Airport”) in accordance with and
subject to the provisions of Chapter 82-259, Laws of Florida, and Lease
Agreement No. 3265 from the Board of Trustees of the Internal Improvement Trust
Fund of the State of Florida; and

 

WHEREAS, in the discharge
of its duties, Lessor has determined it to be in the public interest to lease
portions of the Airport land not required for aviation use for non aviation
purposes in order to raise revenues to support the Airport operation; and

 

WHEREAS, the Lessee
desires to lease a portion of the Airport land for non aviation uses and is
willing to pay the Lessor rents at market rates therefor; and

 

WHEREAS, the Lessee has
represented and warranted to the Lessor that it is a corporation authorized to
transact business within the State of Florida and that it has or will obtain
adequate financial resources and has the business skill and ability to perform
all obligations herein imposed upon the Lessee diligently, skillfully and
successfully to operate the leased premises for the purposes intended.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained in this
Agreement, the parties hereby agree as follows:

 

1

 

LEASE AND OPERATING
AGREEMENT

(AVIATION)

 

This Lease and Operating
Agreement (the “Agreement”) is made and entered into this TWELFTH day of
JUNE, 1991, by and between the BOCA RATON AIRPORT AUTHORITY, hereinafter
called the “Lessor”, and BOCA ARENA, INC. hereinafter called the “Lessee”.

 

This Agreement represents
the whole and entire Agreement between Lessee and Lessor and the following
Articles, attachments, and amendments are herein incorporated:

 

	
   

  	
   

  	
   

  
	
  ARTICLES

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  Article I

  	
  Term

  	
  3

  
	
  Article II

  	
  Leased Premises

  	
  4

  
	
  Article III

  	
  Rights, Obligations, and Minimum Operating Standards

  	
  5

  
	
  Article IV

  	
  Appurtenant Privileges

  	
  7

  
	
  Article V

  	
  Leasehold Improvements

  	
  8

  
	
  Article VI

  	
  Payments

  	
  11

  
	
  Article VII

  	
  Utilities

  	
  13

  
	
  Article VIII

  	
  Insurance

  	
  13

  
	
  Article IX

  	
  Liability, Indemnification and Bond

  	
  15

  
	
  Article X

  	
  Disclaimer of Warranties

  	
  16

  
	
  Article XI

  	
  Lessee as Independent Contractor

  	
  17

  
	
  Article XII

  	
  Assignment

  	
  17

  
	
  Article XIII

  	
  Non-Discrimination

  	
  19

  
	
  Article XIV

  	
  Requirements of the United States

  	
  20

  
	
  Article XV

  	
  Default and Termination

  	
  20

  
	
  Article XVI

  	
  Arbitration

  	
  25

  
	
  Article XVII

  	
  Subordination Clause

  	
  25

  
	
  Article XVIII

  	
  Miscellaneous Provisions

  	
  26

  
	
   

  	
   

  	
   

  
	
  ATTACHMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Plan of the Premises

  	
   

  
	
  Exhibit B

  	
  Legal Description of the Real Property

  	
   

  
	
  Exhibit C

  	
  Lessee’s Preliminary Master Plan of Improvements

  	
   

  
	
  Exhibit D

  	
  Memorandum of Understanding Between Lessor and City

  	
   

  
	
  Exhibit E

  	
  List of Stockholders, Directors and Officers

  	
   

  
	
  Exhibit F

  	
  Personal Inquiry Waiver-Officers, Managers Major
  Stockholders

  	
   

  
	
  Exhibit G

  	
  Personal Inquiry Waiver-Directors

  	
   

  
	
  Exhibit H

  	
  Leasehold Improvements Bond

  	
   

  

 

2

 

ARTICLE I

TERM

 

A.            The initial term of this Agreement shall be for a period
of FIFTY years, commencing on the TWELFTH day of JUNE 1991,
and continuing through the 31st day of MAY, 2041, (the “Termination Date”),
unless earlier terminated under the provisions of this Agreement.

 

B.            Lessor agrees, upon request of Lessee given during the
first six months of the last year of the term of this Lease then in effect, to
negotiate in good faith with Lessee for an extension of the term from and after
the termination date in accordance with the terms, conditions and policies of
Lessor in effect at that time.

 

C.            This lease is conditioned upon the acknowledgement of no
objection to the lease by the Federal Aviation Administration, an agency of the
United States government, and approval by the Internal Improvement Trust Fund
of the State of Florida. Said acknowledgement and approval are to be in writing
by an authorized representative of said agencies. The parties agree to use
their best efforts to secure such approvals. If such acknowledgement and
approval are not obtained within ninety (90) days from the date of execution
hereof, either party may cancel this Agreement without further liability to
either party.

 

D.            Lessee shall have ninety (90) days from the date of FAA
acknowledgement of no objection to the Lease to make all title examinations,
architectural and engineering studies including subsoil tests and to
investigate environmental, zoning, utility, traffic, economic feasibility and
other factors. At any time before the expiration of said ninety (90) days,
Lessee may cancel this Agreement without further liability to either party and
such cancellation shall be Lessee’s sole remedy; otherwise Lessee shall be
strictly bound to the terms hereof.

 

E.             Simultaneously with the execution of this Agreement,
Lessee shall pay to Lessor a retainer of $5,000.00 to defray Lessor’s costs in
connection with this Agreement as certified by Lessor’s Treasurer and upon FAA
acknowledgement of no objection an additional $5,000.00. If this Agreement is
cancelled by Lessor or by Lessee pursuant to subparagraph C or D or upon
completion of construction Lessor will refund Lessee any balance of the
retainer not expended by Lessor.

 

F.             Until the Lessee opens its place of business to the
public, it shall deliver to the Airport Director before the last day of each
calender month a written progress report detailing its efforts that month
pursuant to paragraphs C and D above and its progress in constructing leasehold
improvements pursuant to Article V below.

 

3

 

ARTICLE II

LEASED
PREMISES

 

A.            Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, the “Premises”. The Premises are graphically depicted on a copy of the
Airport Layout Plan which is attached hereto and marked Exhibit A. The
legal description of the Premises is attached hereto and marked Exhibit B.
In the event of any discrepancy between the legal description contained in Exhibit
B and the graphic depiction of Exhibit A, the legal description
shall control.

 

The Lessee and its
employees, patrons, guests and invitees shall have the right of ingress to and
egress from the leased lands excluding the Arena building. Lessor, its other
tenants, their employees and invitees, shall have a common right of way over
and across Lessee’s roads and driveways to and from other Airport Lands and
buildings.

 

B.            For purposes of this Agreement, the term “Premises” shall
include leasehold improvements to be constructed by Lessee pursuant to Article
V of this Agreement.

 

C.            Maintenance and Repair.

 

1.        Lessee agrees to keep and maintain in a
first class condition and in good state of repair, at all times, all leased grounds
and structures on said Premises, whether owned by Lessee, Lessor or Third
Party, including all interior, exterior, and structural maintenance. For the
purpose of this Agreement, interior, exterior and structural maintenance are
defined as follows:

 

a.  “Interior maintenance” shall mean the
maintenance and keeping in good repair of the interior walls and ceilings, painting,
repairs or alterations of plumbing, doors, window or door glass, electrical
fixtures, air conditioning, water fixtures, locking devices and all other
fixtures; janitorial services such as sweeping, dusting, mopping and waxing
floors; changing lamps; interior and exterior washing of windows; and the arrangement
for sanitary removal of trash from the Premises.

 

b.  “Exterior maintenance” shall mean the
maintenance and keeping in good repair of doors, painting, trimming of the grounds
of the Premises occupied or assigned with the building(s), and keeping the
grounds in a neat and orderly condition to include the sanitary removal of
trash from the Premises.

 

c.  “Structural maintenance” shall mean the
keeping in good repair of the building foundation, structural members, and the
repair of casualty damage to exterior walls and roof.

 

4

 

D.            Lessee’s contact with Lessor in connection with the
premises herein leased shall be with the Airport Director designated by the
Lessor, subject to the terms and provisions of this Lease, which may not be
waived, modified or amended except in writing executed by the Authority.

 

ARTICLE III

RIGHTS, OBLIGATIONS, AND
MINIMUM OPERATING STANDARDS

 

A.            Lessee agrees to provide, and is hereby granted the right
to conduct the following activities at Boca Raton Airport:

 

The Lessee shall use the
leased Premises for the sole purpose of constructing, equipping, furnishing and
operating the following improvements thereon and for no other purposes
whatsoever: A 60,000 square foot two story arena for sports and special events,
including racquet ball and basketball courts, outdoor batting cages, snack bars
and other amenities described in Lessee’s proposal plus parking, landscaping
and signage as approval by the City and by the Lessor.

 

B.            Minimum Operating Standards.

 

The proposed improvements are shown on the Lessee’s
preliminary master plan, a copy of which is attached hereto and marked Exhibit
C. The Standards established herein set forth the minimum operating
standards to be met as a condition for the right to conduct any activity or
endeavor at the Airport. Lessee agrees that all activities authorized under
this Agreement will be performed in accordance with the Airport Minimum
Operating Standards that are applicable, including such reasonable amendments
as may be adopted by Lessor from time to time.

 

In providing any of the
required services or activities specified herein, Lessee shall operate for the
use and benefit of the public and shall meet or exceed the following standards.

 

1.                       [OMITTED]

 

2.        Lessee shall select and appoint a
full-time manager for each of its operations at the Airport. Each manager shall
be qualified and experienced and vested with full power and authority to act in
the name of Lessee with respect to the method, manner and conduct of the
operation of the services to be provided. Each manager shall be available at
the Airport during regular business hours. During each manager’s absence, a
duly authorized subordinate shall be in charge and available at the Airport.

 

3.        Lessee shall provide, at its sole
expense, a sufficient number of employees to provide effectively and efficiently
the services required or authorized by Agreement. Lessee covenants that it will
be open for business for at least

 

5

 

twelve (12) hours on all
days that the majority of similar businesses in Boca Raton are open for
Business.

 

4.        Lessee shall control the conduct,
demeanor and appearance of its employees, who shall be trained by Lessee and who
shall possess such qualifications and hold such licenses as may be required in
carrying out assigned duties. It shall be the responsibility of Lessee to
maintain close supervision over its employees to assure a high standard of
service to customers of Lessee.

 

5.        Lessee shall meet all expenses and
payments in connection with the use of the Premises and the rights and privileges
herein granted, including licenses, taxes, assessments or permits required by
law in the normal course of business. Lessee may, however, at its sole expense
and cost, contest any tax, fee or assessment.

 

6.        Lessee shall comply with all Federal,
State and Local laws and Airport rules, regulations and minimum operating standards
which may apply to the conduct of the business contemplated, including rules
and regulations promulgated by Lessor, and Lessee shall keep in effect and post
in a prominent place, all necessary and/or required licenses or permits.

 

7.        It is expressly understood and agreed
that, in providing required services pursuant to the Agreement, Lessee shall
have the right to choose, at its sole discretion, its vendors and suppliers.

 

8.        During the term of the Agreement, Lessee
shall have the right, at its expense, to place in or on the Premises a sign or
signs identifying Lessee. Said sign or signs shall be of a size, shape and
design, and at a location or locations approved by Lessor. Lessor’s approval
shall not be withheld unreasonably. Notwithstanding any other provision of the
Agreement, said sign(s) shall remain the property of Lessee. Lessee shall remove,
at its expense, all lettering, signs and placards so erected on the Premises at
the expiration of the term of the Agreement.

 

9.        [OMITTED]

 

10.      [OMITTED]

 

11.      Lessee shall not do business on the
Airport Premises in any business name other than the name of the business as it
appears in the Lease and Operating Agreement with the Lessor without the
approval of Lessor which will not be unreasonably withheld.

 

12.      Lessee will comply with all codes and
requirements of the City of Boca Raton, including impact fees, if applicable, to
the same extent as though the demised premises were not on state-owned land.

 

6

 

13.      Lessee agrees to observe and obey during
the term of this Lease, all laws, ordinances, rules and regulations promulgated
and enforced by Lessor and by any other proper authority having jurisdiction
over the conduct of operations at the Airport. This shall include but is not
limited to, the Lessee’s obligation to maintain the security of the Air Operations
Area.

 

14.      Any use of the premises which is not
expressly permitted shall be deemed prohibited unless the prior written consent
of Lessor is obtained.

 

ARTICLE IV

APPURTENANT PRIVILEGES

 

A.            Use of Airport Facilities.  Lessee shall be entitled, in common with
others so authorized, to the use of facilities and improvements of a public
nature which now are or may hereafter be connected with or appurtenant to the
Airport, including the use of landing areas, runways, taxiways, navigational
aids, terminal facilities, and aircraft parking areas designated by Lessor.

 

B.            Maintenance of Airport Facilities.  Lessor shall maintain all public and common
or joint use facilities of the Airport outside the demised premises, including
the Air Operations Area, in good repair, and shall make such repairs, replacements
or additions thereto as are required and necessary for the safe and efficient
operation of the Airport.

 

Lessee shall notify the
Airport Director of any condition requiring repairs, replacements or additions
necessary for the safe and efficient operation of the Airport.  Lessor shall not be liable to Lessee, its
agents, employees or customers, for any damages resulting from any condition
arising after the execution of this Lease unless Lessee has notified the
Airport Director and has confirmed such notification in writing directed to the
Authority prior to the occurrence of any loss.

 

C.            Airspace and Approaches.  Lessor reserves the right to take any action
it considers necessary to protect the airspace and approaches of the Airport
against obstruction, together with the right to prevent Lessee form erecting,
or permitting to be erected, or locating any building, object, or structure on
the leased Premises or adjacent to the Airport which, in the opinion or Lessor,
would limit the usefulness of the Airport or constitute a hazard to aircraft.

 

D.            Easements. 
The Lessee shall convey to the Lessor any easements through the leased
property that may be required for the installation of utilities, right-of-way
for roads or any other public purposes. It is understood that should any
easements be requested, they will be compatible with any existing or

 

7

 

proposed installations of the Lessee, provided only
that such existing or proposed installations have been approved by Lessor in
accordance with this Lease. It is further agreed that if it becomes necessary
to install, relocate or remove any such easement, the cost of such installation,
removal or relocation, including restoration of the Lessee’s property to its
prior condition, shall be at the Lessor’s expense. In the event there is a loss
of beneficial use or impairment of beneficial use resulting from the conveyance
of such easement from Lessee to Lessor, proper adjustment of the rent
hereinafter required shall be made at the time of the conveyance of such
easement. No special assessment for such easement or improvements made thereon
shall be made against Lessee.

 

ARTICLE V

LEASEHOLD IMPROVEMENTS

 

A.            Required
Improvements.

 

1.     As part of the consideration for the
privileges herein granted, Lessee agrees to construct or otherwise make new and
additional improvements which shall become part of the real estate and shall
have an actual cumulative cost of $4,000,000.00 including all fees and
costs associated therewith, but excluding the cost of tools, equipment,
inventory or accessories installed or stocked on the premises. Said
improvements shall be of permanent construction affixed to the real estate and
shall meet or exceed Lessor specifications, local, county, state or federal
codes, and FAA requirements, and be consistent with the approved Airport Master
Plan. Lessee will provide all appurtenant parking and landscaping. The
leasehold improvements are to include not less than One building of 60,000
square feet and a minimum of 350 parking spaces.

 

All improvements
of Lessee shall be solely at Lessee’s cost and expense and shall be performed
in a good workmanlike manner in accordance with sound construction practices.
Lessee shall keep the Premises and any improvements free and clear of all liens
for labor and material and shall hold Lessor harmless from any liability in
respect to Lessee’s work. Lessee shall pay all impact and other governmental
fees and charges.

 

a.             Lessee agrees to use due diligence
to obtain appropriate permits for the construction of the leasehold improvements
as soon as possible and to complete the construction of the leasehold
improvements within one (1) year after said permits have been issued.

 

b.             If for any reason the leasehold
improvements are not completed within said one (1) year period plus a grace
period of six (6) additional months, the Lessor may, at its sole option and
discretion, terminate this Lease and all rights of Lessee upon thirty (30) days
written notice to Lessee. “Completion”

 

8

 

shall mean substantial completion for all practical
purposes, meaning, in the case of buildings, that an occupancy permit has been
issued and, in the case of other improvements, that they are fully useable for
the purposes for which they are intended.

 

c.             In order to further secure the full
performance by Lessee of its obligations under this Article, Lessee shall upon
the issuance of building permits execute a Leasehold Improvements Bond (Exhibit
“H”) secured either by a cash deposit with Lessor in the sum of One Hundred
Thousand Dollars ($100,000) or a clean bank letter of credit approved as to
form and substance by Lessor’s attorney and Treasurer. If the security for the
bond is a cash deposit, Lessor’s Treasurer shall invest the same in a
certificate of deposit for a term of ninety (90) days and shall renew the same
each ninety (90) days thereafter, unless a longer term is mutually agreed upon
in writing. Upon the cancellation of this Lease under Article One, paragraph C
or D above, or, if not cancelled, upon the completion of the leasehold
improvements, Lessor shall either endorse and deliver the certificate of
deposit with interest to Lessee or cancel and return the letter of credit to
Lessee. If Lessee fails to complete the leasehold improvements within said one
(1) year period plus a grace period of six (6) additional months, Lessor may
declare the bond forfeited whereupon either the certificate of deposit with
interest or the funds obtained by calling the letter of credit shall become the
sole property of Lessor as liquidated damages in addition to any and all other
remedies provided to Lessor under this Article.

 

d.             In case of a dispute between the
parties as to whether or not the sum set forth in A.1 above has been expended
in actual cost of the leasehold improvements or as to whether the improvements
have been completed, the dispute will be referred to the chief city engineer of
the City of Boca Raton whose decision as a common law arbitrator will be final
and binding upon the parties and upon the courts. If the chief engineer of the
City is unable or unwilling to serve and the parties are unable to agree on a
substitute, the arbitrator shall be a civil engineer or architect appointed by
the Mayor of the City of Boca Raton. The costs of arbitration shall be paid
one-half by Lessee and one-half by Lessor.

 

e.             In order to verify the actual cost
of improvements, Lessee shall upon request of Lessor at any time submit to the
Lessor or to its designee certified true and correct copies of all construction
contracts, invoices, bills, checks or any other documents requested.

 

f.              Any deadlines stated above shall
be extended for the length of any delay occasioned by Act of God, force
majeure, union strike affecting contractors or by any act or failure to act on
the part of the Lessor or of any other governmental authority beyond the time
periods stated below. If no time period is stated for an approval or rejection
by Lessor or any governmental authority, thirty (30) days shall be deemed the
time

 

9

 

period allowed for the purpose of this paragraph.

 

2.     Lessee agrees that it shall, within sixty
(60) calendar days from the date of this Agreement, submit to Lessor and to the
FAA, for approval, a layout plan of the proposed improvements. Within
one-hundred twenty (120) calendar days after FAA and Lessor approval, Lessee
shall submit to Lessor detailed plans and specifications for the proposed
leasehold improvements. Lessor agrees that it shall either approve the plans
and specifications as submitted, or transmit proposed revisions to Lessee,
within thirty (30) calendar days of receipt of the plans and specifications
from Lessee.

 

3.     After obtaining FAA and Lessor’s approvals,
Lessee shall obtain all City approvals in accordance with the Memorandum of
Understanding between Lessor and the City dated September 11, 1984, a copy of
which is attached hereto and marked Exhibit D.

 

4.     In the event the Lessor or other
governmental agencies require revisions of plans and specifications, Lessee shall
have thirty (30) calendar days from the date of receipt of the proposed
revisions to resubmit the plans and specifications for approval. Lessor’s
approval of plans and specifications shall not be unreasonably withheld.

 

5.     Upon receipt of final approval of the plans
and specifications by Lessor and other governmental agencies and the issuance
of City building permits, Lessee shall cause construction to commence forthwith
and to be scheduled for completion as set forth in paragraph A.1a above.

 

6.     All contractors shall be required to
provide performance and labor and material payments bonds to be issued by substantial
surety companies licensed to do business in Florida and in form, substance and
amount subject to approval by Lessor, which shall not be unreasonably withheld.
Bonds shall be for the benefit of Lessee and lessor, shall be delivered to
Lessor no less than ten (10) days prior to commencement of construction and shall
remain in effect until completion and acceptance of all work and the expiration
of the warranty period following acceptance, free and clear of all claims of
mechanics, laborers, sub-contractors and materialmen.

 

B.            It
is agreed and understood that all improvements shall automatically revert to
Lessor upon the expiration of the initial term of this Lease on May 31, 2041,
free and clear of any and all mortgages, liens and encumbrances, subject only
to the terms of this Lease. No less than six (6) months prior to the final expiration
of the term of this Lease, Lessee shall provide Lessor with a Title Insurance
Policy insuring the Lessor against loss or damage for liens and encumbrances
incurred by Lessee.

 

C.            No
Liens Created.

 

Each party covenants and
agrees that it has no power to

 

10

 

incur any indebtedness giving a right to a lien of any kind of
character upon the right, title and interest of the other party in and to the
property covered by this Lease, and that no person shall ever be entitled to
any lien, directly or indirectly derived through or under the other party, or
its agents or servants, or on account of any act or omission of said other party,
which shall be superior to the lien of this Lease reserved to the Lessor upon
the leased Premises. All persons contracting with the Lessee, or furnishing
materials or labor to said Lessee, or to its agents or servants, as well as all
persons whosoever, shall be bound by this provision of this Lease. Should any
such lien be filed, the Lessee shall discharge the same within thirty (30) days
thereafter, by paying the same or by filing a bond, or otherwise, as permitted
by law. The Lessee shall not be deemed to be the agent of the Lessor, so as to
confer upon a laborer bestowing labor upon the leased Premises, or upon a
materialman who furnishes material incorporated in the construction of
improvements upon the leased premises, a mechanic’s lien upon the Lessor’s
estate under the provisions of Chapter 713, Florida Statutes, 1969, and
subsequent revisions thereof. This provision shall be written into all
contracts for construction executed by Lessee.

 

D.    [OMITTED]

 

ARTICLE VI

PAYMENTS

 

Rent and Fees.
In consideration of the rights and privileges granted by this Agreement, Lessee
agrees to pay Lessor during the term of this Agreement the following:

 

A.    Rent.  A base ground
rent of One Hundred Twenty Five Thousand dollars ($125,000.00) per annum
for the Premises, payable in twelve (12) monthly installments of $10,416.66
each, commencing on the first day of June 1992 shall be paid during the balance
of the term of this Lease and any renewal thereof (unless re-negotiated for the
renewal term). Provided however, that the rent June 1, 1992 through May 31,
1993 shall be $62,500.00 in consideration of improvements to Lessors’
property.

 

1.     Cost of Living Adjustments. The
annual base ground rent of $125,000.00 per annum shall be adjusted
annually on the first day of June each year in accordance with increase or decrease
(but not decrease below the $125,000.00 original base rent) in the
Consumer Price Index (CPI-U), or if CPI-U is discontinued, the currently
accepted comparable index, provided that the first CPI-U adjustment will be
made as of June 1, 1996, based on the CPI-U Index for the most recent month
then published and available at the Boca Raton Public Library to adjust for the
increase from June 1, 1991 through May 1996.

 

2.     [OMITTED]

 

11

 

3.     [OMITTED]

 

B.    Percentage Rent and User Fees.

 

1.     [OMITTED]

 

2.     [OMITTED]

 

3.     User Fees.  As additional rental, Lessee agrees to pay to
Lessor sums equivalent to all ad valorem taxes and special assessments which
would be levied against the improvements by the City of Boca Raton but for the
fact that the leased Premises are exempt from local taxation because they are
state-owned and are being used for a public purpose. The Lessor will remit or contribute
the user fees to the City in order to defray its costs of providing services to
the Premises. The value of the improvements for the purpose of this paragraph
shall be assessed by the Lessor.

 

C.    Payments.

 

1.      Base ground rents under paragraph A above
(as adjusted for cost of living) plus applicable sales taxes shall be paid on or
before the tenth (10th) day of each month for that month.

 

2.      [OMITTED]

 

3.      User fees under paragraph B, shall be paid
on dates equivalent to ad valorem tax due dates.

 

4.      [OMITTED]

 

5.      [OMITTED]

 

6.      Delinquency Charge. A delinquency
charge of five percent (5%) per month shall be added to payments required by paragraphs
A and B above, which are rendered more than ten (10) days delinquent.

 

7.      [OMITTED]

 

D.    Place of Payments.  All payments due Lessor from Lessee shall be
delivered to the place designated in writing by Lessor.

 

E.     Legal Taxes and Assessment.  Lessee shall pay all legal taxes and
assessments, including those for waste disposal, levied against the leased
Premises during the term of this Agreement or any renewal thereof and any such
payments made to the City of Boca Raton shall reduce pro tanto the user fees
payable under Paragraph B.3 above.

 

F.     [OMITTED]

 

G.    [OMITTED]

 

12

 

H.    [OMITTED]

 

I.      [OMITTED]

 

J.     [OMITTED]

 

K.    [OMITTED]

 

L.     Abatement of Rent and Lease Extension.  In the event the provisions of Article XV,
A.3 become applicable, Lessee’s rent shall abate in the proportion of such time
to days of the month to which the disruption occurs. In such an event, Lessee
shall have the option to terminate the Lease or to keep the Lease in force. In
the latter case, the Lease shall be extended for such time as any affected
operation is closed for business. In the event of any taking by Lessor or any
other governmental unit which reduces the size of the land or affects the use
of the premises, Lessee shall be entitled a pro rata abatement of rent.

 

M.   In addition to the rent and fees herein,
Lessee shall pay to Lessor all sales taxes applicable to said rent and fees.

 

ARTICLE VII

UTILITIES

 

A.    Lessee agrees to pay the cost of all
utilities used or consumed on the demised Premises. In the event Lessee fails
to pay any utility bills when due, Lessor may, at its option, pay the same and
collect from Lessee the amounts so disbursed, plus interest at the rate of five
percent (5%) per month or fraction thereof, and in such event, the Lease
Agreement is subject to cancellation at the option of the Lessor.

 

B.    Lessee hereby grants all easements through
the leased Premises required by Lessor for water and sewer main and lateral lines
including those serving the leased Premises and those serving other areas of
the airport including area leased to other parties.

 

C.    Lessee agrees to
provide and pay for all charges and costs to connect its improvements to the
water and sewer systems.

 

D.    Lessee agrees to abide by all requirements
of the appropriate governmental agencies having jurisdiction over the water and
sewer systems.

 

ARTICLE VIII

INSURANCE

 

A.    Required Insurance.  Lessee shall obtain and maintain continuously
in effect at all times during the term of this Agreement, at Lessee’s sole
expense, the insurance coverages specified in Article III, for the specific
type or types of

 

13

 

activity proposed by
Lessee.  Lessee further agrees to name
the Lessor and the State of Florida as an additional insured on all such
insurance coverages.

 

Lessee shall obtain and
maintain continuously in effect at all times during the term of this Agreement
fire and extended coverage insurance on all fixed improvements on or in the
Premises in an amount not less than eighty percent (80%) of the full
replacement value thereof, as determined by an appraisal obtained from an
independent appraiser appointed by Lessor, paid by Lessee and updated annually,
or, in the alternative, full replacement cost coverage.

 

In the event of
destruction of or damage to any of the leased property covered by insurance,
the funds payable in pursuance of said insurance policies shall be deposited in
a commercial bank located in Boca Raton, Florida selected by the Lessor, as a
trust fund, and said funds shall be used for the purpose of reconstruction or
repair, as the case may be, of any of the buildings, improvements or personal
property so damaged or destroyed. Should the cost of reconstruction or repair
exceed the amount of funds available from the proceeds of such insurance
policy, then in such event, such funds shall be used as far as the same will
permit in paying the cost of said reconstruction or repair and the Lessee shall
pay the balance. In the event that the cost of such reconstruction or repair
work shall be less than the proceeds derived from such insurance policies, the
surplus shall be payable to the Lessee upon completion of the full restoration
of the Premises.

 

B.    Additional insurance coverages shall be as
follows:

 

1.     Comprehensive Insurance.  Lessee, at its expense, shall provide
comprehensive insurance (including but not limited to fire, theft and windstorm)
on all personal property belonging to the Lessee situated on the leased
Premises, and replacements thereof, for the benefit of the Lessor and the
Lessee, in an amount not less than eighty percent (80%) of the insurance value of
said personal property.

 

2.     Workers’ Compensation. The Lessee shall carry, maintain and pay for
the necessary Workers’ Compensation insurance in its own name.

 

3.     Public Liability and Automobile
Liability Insurance Minimums:

 

$   300,000.00 for any individual claim.

$   500,000.00 for more than one claim.

$   100,000.00 for property damage.

$1,000,000.00 for excess
coverage above limits.

 

4.     Builder’s Risk.  During the construction of improvements,
Lessee shall carry such coverage as shall be approved by Lessor in writing,
such approval not to be

 

14

 

unreasonably withheld.

 

C.    Whenever either party obtains knowledge of
any claim, demand or action as to which either party may be liable or as to which
there may be insurance coverage, the party having knowledge shall notify the
other party in writing as soon as practicable and both parties shall cooperate
in the investigation and defense of any such claim, demand or action.

 

D.    A certified copy of each policy (or
binder)., and a certificate evidencing the existence thereof, shall be
delivered to the Lessor within ten (10) days after issuance of the building permit,
and after each renewal. Each such copy and certificate shall contain a valid
provision or endorsement that the policy may not be cancelled, terminated,
changed or modified without giving thirty (30) days written notice thereof to
the Lessor.

 

E.     Neither party hereto shall be liable to the
other party or to the insurer of such other party claiming by way of
subrogation through or under such other party with respect to any loss or
damage to the extent that such other party shall be reimbursed or has the right
to be reimbursed out of the party’s property insurance coverage carried for
such other party’s protection with respect to such loss or damage. The
provisions of this paragraph shall apply only to the extent permitted by
provisions of the insurance policy in question.

 

ARTICLE IX

LIABILITY,
INDEMNIFICATION AND BOND

 

A.    Lessee agrees to assume all risks of the
Premises and all liability therefor, and shall defend, indemnify and hold
harmless the Lessor, its members, officers, agents, and employees from and
against any and all loss, liability, and damages of whatever nature, to persons
and property, including, without limiting the generality of the foregoing,
death of any person and loss of the use of any property. This includes, but is
not limited to, matters arising out of or claimed to have been caused by or in
any manner related to the leased Premises or Lessee’s operations or those of
any approved or unapproved tenant, sub-tenant, licensee, invitee, trespasser,
contractor, subcontractor or other person approved, authorized, or permitted by
Lessee in or about the Premises, including losses, liability, and claims
related to air and noise pollution, or any other operations pursuant hereto,
whether or not based on negligence. Lessee shall defend all such claims,
demands and suits, whether groundless or not, at Lessee’s own cost and expense.
Further, Lessee does hereby covenant and agree to indemnify, hold harmless, and
defend Lessor, its members, officers, agents, and employees, from and against
any and all loss, liability, and damages arising out of or in any manner
related to any breach by Lessee, its agents, employees, invitees, licensees,
contractors, subcontractors, tenants, or subtenants, whether approved or

 

15

 

unapproved, of any of the
terms, conditions, or other provisions of this Agreement. Provided, however
that this indemnification shall not be construed to attend to the Acts or
omissions of Lessor or its agents, servants or employees.

 

B.    Lessee agrees to defend, indemnify, and hold
harmless the Lessor, its members, officers, agents and employees from and
against any and all claims or liability for compensation under any workers’
compensation statute arising out of injuries sustained by any employee of
Lessee or of any licensee, contractor, subcontractor, tenant or subtenant of
Lessee.

 

C.    Lessee agrees to indemnify Lessor from and
to assume all liability for, and to pay all taxes and assessments of every
kind, including taxes or assessments imposed or which may be imposed by the
County of Palm Beach and/or by the City of Boca Raton and/or by any authority
such as the Solid Waste Authority, which by law may be levied or assessed on
the premises occupied by Lessee pursuant to this Agreement, or which arise out
of the operations of Lessee, or by reason of occupancy by Lessee or any of
Lessee’s agents, licensees, invitees, contractors, subcontractors, tenants, or
subtenants, whether or not approved by the Lessor. Lessee shall be responsible
for obtaining bills for all of said taxes and assessments directly from the
taxing or assessing authority, and shall promptly deliver to the Lessor copies
of receipts of payment. If ad valorem taxes are paid to the City of Boca Raton,
user fees under Article VI, B.3 shall abate pro tanto.

 

D.  Lessee’s obligations to defend, indemnify,
and hold harmless, as set forth in this Article shall include any and all
attorneys’ fees and investigative expenses, incurred by Lessor in the defense
and handling of said suits, claims, damages, and the like, and in enforcing and
obtaining compliance with the provisions of this Article.

 

ARTICLE X

DISCLAIMER OF WARRANTIES

 

This Agreement,
including all Exhibits and Endorsements which may be attached hereto and made
part hereof, constitute the entire Agreement of the parties on the subject
matter hereof and may not be changed, modified or discharged except by written
Amendment duly executed by the Boca Raton Airport Authority. Lessee agrees that
no representations or warranties shall be binding upon Lessor unless expressed
in writing herein or in an Amendment hereof executed by both parties.

 

Without limiting
the generality of the foregoing, it is understood and agreed that:

 

A.  Lessor does not warrant, and hereby disclaims
any and all liability and responsibility for or on account of the

 

16

 

condition of, the
Premises, or the Airport or any portions thereof, or for or on account of
anything affecting such conditions.

 

B.    Lessor makes no warranties and has no
obligations or liability for or with respect to the removal of sand, water or debris
from the Premises or any part thereof.

 

C.    Lessor makes no warranties and has no
obligations or liability for or with respect to the acts or omissions of, or
the presence or absence of any other Lessee or operator at or from the Airport.

 

D.    Lessor makes no warranties and shall have no
obligations or liability with respect to noise, noise pollution, air quality or
air pollution.

 

E.     Lessor makes no warranties and shall have
no obligations or liability with respect to any work which Lessor’s employees
or Lessor’s contractors or subcontractors may perform for Lessee.

 

F.     Lessor shall have no liability whatever for
any indirect, consequential, or incidental damages to Lessee, its agents,
servants, employees, guests, licensees, trespassers, tenants, or subtenants,
whether authorized or not, caused by or arising out of any condition, failure,
or activity enumerated in paragraphs A, B, C, D or E above, unless the same
shall have been caused by Lessor, its agents, servants or employees.

 

ARTICLE XI

LESSEE AS INDEPENDENT
CONTRACTOR

 

In conducting its
business hereunder, Lessee acts as an independent contractor and not as an
agent of Lessor. The selection, retention, assignment, direction and payment of
Lessee’s employees shall be the sole responsibility of Lessee, and Lessor shall
not attempt to exercise any control over the daily performance of duties by
Lessee’s employees.

 

ARTICLE XII

ASSIGNMENT

 

A.    Attached hereto and marked Exhibit “E”
is a list of all stockholders owning ten percent (10%) or more of the stock of
the Lessee and a list of all directors and officers of the Lessee. It is
expressly agreed that if any person not listed on Exhibit E wishes to
become an owner of ten percent (10%) or more of the stock of Lessee or an
officer or manager of the Lessee, he shall execute a Personal Inquiry Waiver in
the form attached hereto and marked Exhibit F or if a director, he shall
execute the form marked Exhibit G. 
The Lessee shall deliver the Waiver, the

 

17

 

person’s curriculum vitae and a copy of the stock
purchase or other agreement, if any, to Lessor. The transaction shall not
become effective until after such delivery of documents to and approval by
Lessor, which approval shall not be unreasonably withheld and shall be deemed
granted unless Lessor gives written notice of rejection to Lessee within sixty
(60) days after delivery of said documents.

 

B.    Assignment of the Agreement. This
Agreement may not be assigned, transferred or subleased without prior written
consent of Lessor. Lessor shall grant any request and give written consent to
any proposed assignment, transfer, or sublease, if in its sound discretion the
proposed assignment, transfer or sublease will promote and further the Lessor’s
objective of providing stable airport service to the public.

 

C.    Any assignment or delegation so permitted by
the Lessor, and any sublease made pursuant to a sublease endorsement hereto shall
be subject to all the covenants, terms, conditions, warranties, and other
provisions of this Agreement. Further, notwithstanding any assignment,
delegation, or sublease, Lessee shall remain obligated and liable to Lessor for
the performance of all covenants, terms, conditions, warranties and other provisions
of the Agreement to the same extent that Lessee would have been obligated and
liable if such assignment, delegation, or sublease had not been made.

 

D.    Sublease endorsements, and assignment and
delegation authorizations shall not be construed to authorize or permit any additional
sublease, assignment, or delegation by Lessee or any lease, assignment or
delegation by any sublessee, assignee, or delegatee unless expressly provided
in the endorsement or authorization.

 

E.     Any attempted sublease without a sublease
endorsement or in violation of the provisions thereof, and any assignment or delegation
without the prior written approval of the Lessor or in violation of the terms
thereof, shall be void and of no effect, except that Lessee and all purported
assignees, delegatees and sublessees shall be obligated and liable to the Lessor
with respect to each and every provision of this Agreement as fully as if such
attempted assignment, delegation, or sublease had been valid.

 

F.     It is understood and agreed that Lessor,
may, at any time, upon at least thirty (30) days written notice and opportunity
to be heard at a public meeting of the Authority, assign or delegate any or all
of its rights hereunder.

 

G.    Lessor hereby grants permission to Lessee to
assign this Lease to any leasehold mortgagee which may, by reason of a default
by Lessee, perform duties and make payments under this Lease, and as more fully
set forth in Article XVII of this Lease.

 

H.    The term “assignment” or “sublease” shall
include any 

 

18

 

form of contract or agreement whereby Lessee removes itself from the
management functions of the operation and delegates all management
responsibility and control to another person, firm or corporation.

 

ARTICLE XIII

NON-DISCRIMINATION

 

A.    Lessee, for itself, its heirs, personal
representatives, successors in interest, and assigns, as a part of the consideration
hereof, does hereby covenant and agree “as a covenant running with the land”
that in the event facilities are constructed, maintained, or otherwise operated
on the said property described in this lease, for a purpose for which a DOT program
or activity is extended or for another purpose involving the provision of
similar services or benefits, the Lessee shall maintain and operate such
facilities and services in compliance with all other requirements imposed
pursuant to 49 CFR Part 21, Non-discrimination in Federally Assisted Programs
of the Department of Transportation, and as said Regulations may be amended.

 

B.    The Lessee for itself, its personal
representatives, successors in interest, and assigns, as a part of the consideration
hereof, does hereby covenant and agree “as a covenant running with the land”
that: (1) no person on the grounds of race, color or national origin shall be
excluded from participation in, denied the benefits of, or be otherwise subjected
to discrimination in the use of said facilities, (2) that in the construction
of any improvements on, over, or under such land and the furnishing of services
thereon, no person on the grounds of race, color, or national origin shall be
excluded from participation in, denied the benefits of, or otherwise be subjected
to discrimination, (3) that the Lessee shall use the premises in compliance
with all other requirements imposed by or pursuant to 49 CFR Part 21,
Non-discrimination in Federally Assisted Programs of the Department of
Transportation, and as said Regulations may be amended.

 

C.    [ADDED] In the event of any breach of any of
the above nondiscrimination covenants, the Lessor shall have the right to terminate
the lease and to re-enter and as if said lease had never been made or issued.
This provision shall not be effective until the procedures of Title 49, Code of
Federal Regulations, Part 21 are followed and completed included exercise or expiration
of appeal rights.

 

D.    The Lessee assures that it will undertake an
affirmative action program, as required by 14 CFR Part 152, Subpart E, to ensure
that no person shall, on the grounds of race, creed, color, national origin, or
sex, be excluded from participating in any employment, contracting, or leasing
activities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no
person shall

 

19

 

be excluded, on these
grounds, from participating in or receiving the services or benefits of any
program or activity covered by this subpart. The Lessee assures that it will
require that its covered organizations provide assurance to the Lessee that
they similarly will undertake affirmative action programs and that they will
require assurances from their sub-organizations, as required by CFR Part 152,
Subpart E, to the same effect.

 

E.     The Lessee agrees to comply with any
affirmative action plans or steps for equal employment opportunity required by
14 CFR Part 152, Subpart E, as part of the affirmative action program or by any
federal, state or local agency or court, including those resulting from a
conciliation agreement, a consent decree, court order, or similar mechanism. The
Lessee agrees that a state or local affirmative action plan will be used in
lieu of any affirmative action plan or steps required by 124 set forth in 14
CFR 152, subpart E, only when they fully meet the standards set forth in 14 CFR
152.409. The Lessee agrees to obtain a similar assurance from its covered
organizations, and to cause them to require a similar assurance of their
covered sub-organizations, as required by 14 CFR Part 152, Subpart E.

 

ARTICLE XIV

REQUIREMENTS OF THE
UNITED STATES

 

This Agreement
shall be subject and subordinate to the provisions of any existing or future
agreement between Lessor and the United States, or any agency thereof, relative
to the operation or maintenance of the Airport, the execution of which has been
or may be required as a condition precedent to the expenditure of federal funds
for the development or operation of the Airport; provided, however, that Lessor
shall, to the extent permitted by law, use its best efforts to cause any such
agreements to include provisions protecting and preserving the rights of Lessee
in and to the Premises, and to compensation for the taking thereof,
interference therewith and damage thereto, caused by such agreement or by
actions of Lessor or the United States pursuant thereto.

 

ARTICLE XV

DEFAULT AND TERMINATION

 

A.    Termination by Lessee.  This Agreement shall be subject to
termination by Lessee in the event of any one or more of the following events:

 

1.  The material default by Lessor in the
performance of any of the terms, covenants or conditions of this Agreement, and
the failure of Lessor to remedy, or undertake to remedy, to Lessee’s
satisfaction, such default for a period of thirty (30) days after receipt of
notice from Lessee to remedy the same.

 

20

 

2.     Uninsured damage to or destruction of all or a material part of
the Premises or Airport facilities necessary to the operation of Lessee’s
business not repaired within one hundred eighty (180) days.

 

3.     The lawful assumption by the United States, or any authorized
agency thereof, of the operation, control or use of the demised premises, or
any substantial part or parts thereof, in such a manner as to restrict
substantially Lessee from conducting business operations for a period in excess
of ninety (90) days.

 

B.    Termination by Lessor.

 

1.     Time of the Essence. 
The Lessee agrees promptly to perform, comply with and abide by this
contract, and agrees that time of payment and of performance is of the very
nature and essence of this contract.

 

2.     Default in Rent: Grace Period. The Lessee shall have a grace
period of ten (10) days in which to pay any and all sums of rent due hereunder.
In the event of a default in the payment of rent hereunder for a period of ten
(10) days, Lessor may immediately notify Lessee in writing, and Lessee shall
have seven (7) days after the date of said notice within which to pay any delinquent
rent. If any of said sums of money herein required to be paid by Lessee to
Lessor shall remain unpaid in accordance with the provisions of this paragraph,
then the Lessor shall have the options and privileges as follows:

 

a.     Total acceleration.  To accelerate the maturity of rent
installments for the balance of the term reduced to present value. This option
shall be exercised by an instrument in writing signed by the Lessor, or its
agents, and transmitted to the Lessee notifying it of the intention of the
Lessor to declare all unmatured rent installments presently due and payable.

 

b.     Partial acceleration.  In lieu of the option in subparagraph a., the
Lessor may in like manner declare as presently due and payable the unpaid rent
installments for such a period of years as may be fixed in the Lessor’s said
notice to the Lessee. The exercise of this option shall not be construed as a
splitting of a cause of action, nor shall it alter or affect the obligations of
the Lessee to pay rent under the terms of this Lease for the period unaffected
by said notice.

 

c.      Other remedies.  In addition to the options herein granted
above, the Lessor may exercise any or all other options available to it hereunder,
including any legal or equitable remedies which it may have, which options may
be exercised concurrently or separately with the exercise of the above option, including
those remedies specified in subparagraph 3 below.

 

21

 

3.     Default in other Provisions.

 

a.      If the Lessee shall default in the
performance of any other item of this contract (except the payment of rent), then
the Lessor, or its agent or employee, shall send to the Lessee a written notice
of default, specifying the nature of the default; and after the date of said
notice, the Lessee shall, within seven (7) days in case of insurance default
and within thirty (30) days in case of any other default, cure and remedy said
default, whereupon the Lease shall continue as before.

 

If the Lessee shall fail
to cure and remedy the default within said time, the Lessor shall have the
right to declare, by written notice to the Lessee that the Lease is in default,
and to use the remedies available to the Lessor on default hereof by the
Lessee.

 

b.     In the event of the Lessee’s breach of any
of the provisions of this Lease, the Lessor shall thereupon have a lien upon
all revenues, income, rents, earnings and profits from the leased Premises as
additional security to the Lessor for the Lessee’s faithful performance of each
of the terms and provisions hereof, and to secure payment of all sums owing the
Lessor hereunder. Such liens shall be superior in dignity to the rights of the
Lessee and any of its creditors or assignees or any trustee or receiver
appointed for the Lessee’s property, or any other person claiming under the
Lessee. Upon the Lessor’s termination of the Lessee’s rights under this Lease
by reason of the Lessee’s default, all such revenues, income, rents, earnings and
profits derived or accruing from the leased Premises from date of such
termination by the Lessor shall constitute the property of the Lessor, and the
same is hereby declared to be a trust fund for the exclusive benefit of the
Lessor and shall not constitute any asset of the Lessee or any trustee or
receiver appointed for the Lessee’s property. The provisions of this paragraph
shall be effective without the Lessor’s re-entry upon the leased Premises or
repossession thereof, and without any judicial determination that the Lessee’s
interest under said Lease has been terminated.

 

c.      If the Lessee shall fail to keep and
perform any of the covenants, conditions and agreements herein provided to be performed
by said Lessee, and such default shall not be remedied within the grace period
provided elsewhere in this Lease, the Lessor shall have the right to treat such
default as intentional, inexcusable and material, and thereupon the Lessor, by
notice in writing transmitted to the Lessee, as provided in the paragraph hereof
entitled “NOTICES”, may at its option, declare the Lessee’s interest under this
Lease ended and without further force and effect. Thereupon the Lessor is
authorized to re-enter and repossess the leased Premises and the building,
improvements and personal property thereon, either with or without legal process,
and the Lessee does in such event hereby waive any demand for possession of
said property, and agrees to surrender and deliver up said leased Premises and
property peaceably to

 

22

 

said Lessor.

 

The provisions of this
Article shall not be construed so as to divest the Lessor, in the event of such
default, of any legal right and remedy which it may have by statutory or common
law, enforceable at law, or in equity; it is intended that the provisions of
this Article shall afford to the Lessor a cumulative remedy, in addition to
such other remedy or remedies as the law affords a Lessor when the terms of a
Lease have been broken by the Lessee.

 

C.    In addition to the options herein granted
above, the Lessor may exercise any or all other options available to it hereunder,
which options may be exercised concurrently or separately with the exercise of
the above options. All options and remedies available to Lessor hereunder are
concurrent and not exclusive, and Lessor may exercise any one or more options
and remedies available to it hereunder without waiving the remainder thereof.

 

D.    Ownership of Improvements.

 

All buildings, structures
and fixtures of every kind now existing or hereafter erected or placed on the
demised Premises shall at the end of the term or earlier termination of this
Lease, for any reason be and become the property of the Lessor and shall be
left in good condition and repair, ordinary wear and damage by the elements
excepted. A fixture shall be defined as an article which was a chattel, but
which, by being physically annexed or affixed to the realty by the Lessee and
incapable of being removed without structural or functional damage to the
realty, becomes a part and parcel of it.

 

Non-fixture personalty,
signs, trade fixtures and equipment owned by the Lessee at the expiration of
the term or earlier termination of this Lease, for any reason, shall continue
to be owned by Lessee, and, at the time of such expiration or earlier
termination, Lessee at its option, may remove, provided the Lessee is not then
in default of any covenant or condition of this lease, otherwise all such
property shall remain on the demised Premises until the damages suffered by
Lessor from any such default have been ascertained and compensated except that,
upon demand by Lessor, Lessee shall remove any property designated by Lessor
from the Premises. If Lessee shall fail to remove personalty within thirty (30)
days of demand by Lessor, then Lessor may effect such removal and restoration
at Lessee’s expense and Lessee agrees to pay Lessor such expense promptly upon
receipt of a proper invoice therefor. Any damage to the demised Premises caused
by the removal by Lessee, of any such personalty, shall be repaired by Lessee
forthwith at its expense.

 

E.     Causes of Breach: Waiver.

 

1.     Neither party shall be held to be in breach of this

 

23

 

Agreement because of any
failure to perform any of its obligations hereunder if said failure is due to
any cause for which it is not responsible and over which it has no control;
provided, however, that the foregoing provision shall neither apply to failures
by Lessee to pay fees, rents or other charges to Lessor, nor to providing the
amounts of insurance contained in Articles III and VIII of the Agreement.

 

2.     The waiver of any breach, violation or default in or with
respect to the performance or observance of the covenants and conditions
contained herein shall not be taken to constitute a waiver of any such
subsequent breach, violation or default in or with respect to the same or any
other covenant or condition hereof.

 

F.     Bankruptcy of Lessee.

 

Should the Lessee, at any
time during the term of this Lease, suffer or permit an involuntary, or
voluntary, petition in bankruptcy to be filed against it, or institute a
composition or an arrangement proceeding under Chapter X or XI of the Chandler
Act, or make any assignments for the benefit of its creditors, or should a
receiver or trustee be appointed for the Lessee’s property because of Lessee’s
insolvency, and the said appointment not vacated within thirty (30) days
thereafter, or should the Lessee’s leasehold interest be levied on and the lien
thereof not discharged within thirty (30) days after said levy has been made,
or should the Lessee fail promptly to make the necessary returns and reports
required of it by state and federal law, or should the Lessee fail promptly to
comply with all governmental regulations, both state and federal, and such
failure shall in any manner jeopardize the rights of the Lessor, then, in such
event, and upon the happening of either or any said events, the Lessor shall
have the right, at its election, to consider the same a default on the part of
the Lessee of the terms and provisions hereof, and, in the event of such
default not being cured by the Lessee within a period of thirty (30) days from
the date of Lessor’s written notice to the Lessee of the existence of such
default, the Lessor shall have the option of declaring this Lease terminated, and the interest of the
Lessee forfeited, and the Lessor may exercise any other optional remedies
herein conferred upon it. The pendency of bankruptcy proceedings, or arrangement
proceedings, to which the Lessee shall be a party shall not preclude the Lessor
from exercising the option herein conferred upon it. In the event the Lessee,
or the trustee or receiver of the Lessee’s property, shall seek an injunction
against the Lessor’s exercise of the option herein conferred, such action on
the part of the Lessee, its trustees or receiver, shall automatically terminate
this Lease as of the date of the making of such application. In the event the
Court shall enjoin the Lessor from exercising the option herein conferred, such
injunction shall automatically terminate this Lease.

 

24

 

G.    Conviction of Felony.

 

Should the Lessee or any
partner, stockholder owning 10% or more of the stock of Lessee, director,
officer or manager of Lessee’s operations at the Airport have been convicted of
a felony or plead guilty to the same, and the convicted party shall not have
sold, transferred, conveyed or surrendered all of his right, title and interest,
direct or indirect, in the ownership, management or control of the Lessee’s
operation at the Airport within sixty (60) days after the sentencing date on
such conviction or plea, then, in such event, the Lessor shall have the right,
at its election, to consider the same a default on the part of the Lessee of
the terms and provisions hereof, and, in the event of such default not being
cured by the Lessee within a period of thirty (30) days from the date of Lessor’s
written notice to Lessee of the existence of such default, the Lessor shall
have the option of declaring this Lease terminated, and the interest of the
Lessee forfeited, or the Lessor may exercise any lesser remedies which it deems
reasonable. The transfer agreement and the transferee shall be subject to
approval of Lessor which shall not be unreasonably withheld.

 

ARTICLE XVI

ARBITRATION

 

In the event of default
under Article VI Payments or Article VIII Insurance, Lessor shall
have the option of litigation or arbitration. In the event of any dispute under
any other provisions of this Agreement which the parties are unable to resolve
between themselves, such dispute shall be submitted to arbitration pursuant to
the Florida Arbitration Code.

 

The agreement of the
parties to arbitrate claims and disputes shall be specifically enforceable
under the prevailing arbitration law.

 

Pending final decision of
the arbitrator or arbitrators, the parties shall proceed diligently with the
performance of their obligations under this Agreement.

 

In the event of
arbitration or litigation between the parties hereto, the prevailing party
shall recover all costs and reasonable attorney’s fees.

 

ARTICLE XVII

SUBORDINATION CLAUSE

 

A.    The Lessee is hereby given the absolute
right without the Lessor’s consent to mortgage his interest in this Lease, and
the improvements now or hereafter erected thereon, provided that no such
mortgage shall extend to or affect the fee, the

 

25

 

reversionary interest, or
the estate of the Lessor and the State of Florida in and to any land or
building and improvements now or hereafter erected on the leased property.

 

B.    No mortgage of this Lease or assignment
thereof shall be binding upon the Lessor in the enforcement of its rights under
this Lease, nor shall the Lessor be deemed to have any notice thereof, unless
and until a fully conformed copy of each instrument, effecting such mortgage or
assignment, in form proper for record, shall have been delivered to the Lessor.

 

C.    If the holder of any such mortgage shall
give the Lessor, before any default shall have occurred in this Lease, a written
notice containing the name and post office address of such holder, the Lessor
shall thereafter give to such holder a copy of each notice of default by the
Lessee at the same time as any such notice of default shall be given by the
Lessor to the Lessee. The copy of such notice of default shall, in each instance,
be deemed duly given to the holder of such mortgage when deposited with the
registry clerk of any United States post office enclosed in a securely sealed
envelope, postpaid, and addressed to such holder at the post office address of
such holder last furnished to the Lessor.

 

D.    The Lessor will accept performance by the
holder of any such mortgage of any term of this Lease required to be performed by
the Lessee, with the same force and effect as though performed by the Lessee,
if at the time of such performance the Lessor shall be furnished with evidence
satisfactory to the Lessor of the interest in the leased property claimed by
the person, firm or corporation tendering such performance or payment. The
holder of such mortgage shall have ten (10) days after receipt of any such
notice of default within which to cure any default in the payment of rent or additional
rent required to be paid under this Lease and a reasonable time within which to
cure any other default.

 

E.     The Lessee acknowledges its understanding
and agreement that its right to assign its interest as Lessee to any leasehold mortgage
does not give the Lessee or its assignee any lien or encumbrance upon the fee
simple interest in the premises which is vested in the Trustees of the Internal
Improvement Fund of the State of Florida. Furthermore, Lessee irrevocably
covenants and agrees that the fee title to the airport property will not be encumbered
whether or not its interest in this Lease is used as security for mortgages or
other types of financing arrangements or otherwise.

 

ARTICLE XVIII

MISCELLANEOUS PROVISIONS

 

A.    The venue of any legal action or arbitration
shall be in Palm Beach County, Florida.

 

26

 

B.    It is understood and agreed that nothing
herein contained shall be construed to grant or authorize the granting of an
exclusive right other than rights of possession to the leased Premises of
Article II.

 

C.    Lessor reserves the right to further develop
or improve the Airport as it sees fit, regardless of the desires or views of the
Lessee, and without interference or hindrance. Lessor shall make every effort
to minimize the disruption of normal airport usage during periods of repair or
further airport development.

 

D.    Lessor reserves the right to maintain and
keep in repair the landing area of the Airport and all publicly owned
facilities of the Airport, together with the right to direct and control all activities
of Lessee in this regard.

 

E.     During time of war or national emergency,
Lessor shall have the right to lease the landing area or any part thereof to the
United States government for military or naval use, and, if such lease is
executed, the provisions of this instrument insofar as they are inconsistent
with the provisions of the lease to the government, shall be suspended.

 

F.     Lessor reserves the right to take any
action it considers necessary to protect the aerial approaches of the airport
against obstruction together with the right to prevent Lessee from erecting, or
permitting to be erected, any building or other structure on or adjacent to the
Airport which, in the opinion of the Lessor, would limit the usefulness of the
Airport or constitute a hazard to aircraft.

 

G.    This Agreement shall be subordinate to the
provisions of any existing or future agreement between Lessor and the United States,
relative to the operation or maintenance of the Airport, the execution of which
has been or may be required as a condition precedent to the expenditure of
federal funds for the development of the Airport.

 

H.    Lessor reserves the right to enter upon the
premises during normal business hours for the purpose of making any inspection
it may deem expedient to the proper enforcement of any of the covenants or
conditions of this Agreement.

 

I.      Entire Agreement.  This Agreement constitutes the entire
understanding between the parties, and as of its effective date supersedes all
prior or independent agreements between the parties covering the subject matter
hereof. Any change or modification hereof must be in writing signed by both
parties.

 

J.     Severability.  If a provision hereof shall be finally
declared void or illegal by any court or administrative agency having
jurisdiction, the entire Agreement shall not be void, but the remaining
provisions shall continue in effect as nearly as possible in accordance with
the original intent of the parties.

 

27

 

K.    Notice.  Any notice given by one party to the other in
connection with the Agreement shall be in writing and shall be sent by
registered mail, return receipt requested, with postage and registration fees
prepaid.

 

1.     If to Lessor, addressed to:

 

Boca Raton Airport
Authority

3700 Airport Road, Suite
204

Boca Raton, Florida 33431–6403

 

2.     If to Lessee, addressed to:

 

Boca Arena, Inc.

6571 Serena Lane

Boca Raton, Florida 33433

 

Notices shall be deemed to have been received on the date of receipt as
shown on the return receipt.

 

L.     Headings.  The headings used in this Agreement are
intended for convenience of reference only and do not define or limit the scope
or meaning of any provision of this Agreement.

 

M.   Governing Law. This Agreement is to be
construed in accordance with the laws of the State of Florida.

 

N.    Standard Clauses Required by FAA.

 

1.      The Lessor reserves unto itself, its
successors, and assigns for the use and benefits of the public, a right of
flight for the passage of aircraft in the airspace above the surface of the
real property herein described together with the right to cause in said
airspace such noise as may be inherent in the operations of aircraft, now known
or hereafter used, for navigation of or flight in the said airspace, and for
use of said airspace for landing on, taking off from or operating on the airport.

 

2.      The Lessee expressly agrees for itself,
its successors and assigns to restrict the height of structures, objects of
natural growth and other obstructions on the herein described real property to
such a height so as to comply with Federal Aviation Regulations, Part 77.

 

3.      The Lessee expressly agrees for itself,
its successors and assigns to prevent any use of the herein described real
property which would interfere with or adversely affect the operation or
maintenance of the airport, or otherwise constitute an airport hazard.

 

4.      [ADDED] This lease and all provisions
hereof are subject to the terms and conditions of the instruments and document
under which the State of Florida acquired the subject property from the United
States of America and shall be given

 

28

 

only such effect as will
not conflict thereof, and any existing or subsequent amendments thereto, are
subject to all terms and conditions contained in the lease of said lands from
the State of Florida, to the Boca Raton Airport Authority and any existing or
subsequent amendments thereto, and are subject to any ordinances, rules or
regulations which have been, or may hereafter be adopted by the Boca Raton
Airport Authority pertaining to the Boca Raton Airport.

 

O.    Attached hereto and marked Exhibit H
is a Leasehold Improvements Bond to be executed by the Lessee simultaneously
with the execution of this Agreement and the posting of the cash deposit or
letter of credit mentioned in Article V. A. I(c) of this Agreement.

 

P.     This Lease and Operating Agreement is
contingent upon Lessee’s submitting to the Authority within one hundred twenty
(120) calendar days after FAA and Lessor approval of Lessee’s layout plan of
the proposed improvements (i.e. simultaneously with the submission of detailed
plans and specifications pursuant to Article V, A.2) written evidence
satisfactory to the Authority that mortgage commitments and/or letters of
credit have been issued by responsible financial institutions sufficient to
finance the construction of the improvements upon the premises. If Lessee fails
to comply with this requirement, Lessor may terminate this Agreement and
exercise any other remedies provided under this Agreement.

 

Q.    In the event that the leased land shall
become available for purchase by a non-governmental person, firm or
corporation, then Lessee shall have the right of first refusal under the same
terms and conditions.

 

 

	
   

  	
  BOCA RATON AIRPORT AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Robert E. Langavin

  	
   

  	
  By 

  	
  /s/ George W. Blank

  	
   

  
	
  SECRETARY

  	
  CHAIRMAN

  
	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
  LESSEE, BOCA ARENA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jolie Mullin

  	
   

  	
  By 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  SECRETARY

  	
  PRESIDENT

  
	
  (SEAL)

  	
   

  
						

 

29

 

LEASEHOLD IMPROVEMENTS
BOND

 

KNOW ALL MEN BY
THESE PRESENTS, that              
Inc. hereinafter called “Principal”, is held and firmly bound unto BOCA
RATON AIRPORT AUTHORITY, an agency of the State of Florida, hereinafter called “Authority”,
in the sum of One Hundred Thousand Dollars ($100,000), lawful money of
the United States of America, for the payment of which it binds itself, its
successors and assigns, jointly and severally, firmly by these presents:

 

WHEREAS,
the above-named Principal has entered into an Agreement to construct leasehold
improvements at a cost of            
in accordance with the plans and specifications approved by the governmental
agencies having jurisdiction thereof and by the Authority,

 

WHEREAS,
the approval by the Authority is further conditioned upon the furnishing to the
Authority of a bond to guarantee full and faithful performance of the
Agreement; and

 

WHEREAS,
the said sum of $100,000 shall be in the form of a Certificate of Deposit in
the name of the Authority to be held in escrow by the Treasurer of the
Authority or a clean bank letter of credit approved in form and substance by
Lessor’s attorney and treasurer or personal guarantees acceptable to the Authority.

 

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION
IS SUCH THAT, if the Principal shall in all respects comply
with the terms and conditions of the Agreement between the parties concerning
the construction and payment for the leasehold improvements for the Boca Raton
Airport and shall procure the design, construction and payment for the same in
accordance with the applicable laws, rules and regulations and according to the
plans, specifications and schedules covering said work, and such approved additions,
amendments, or alterations as may be made in the plans, specifications and
schedules covering said work, and such approved additions, amendments, or
alterations as may be made in the plans, specifications and schedules for such
work as approved by the Authority and shall see that the work as approved by
the Authority shall be completed and shall pay (or bond) the contractors
therefor on or before December 31, 1996, then this obligation shall be void and
either the said Certificate of Deposit with any interest earned thereon shall
be endorsed by the Authority and returned to the Principal or the letter of
credit or personal guarantees shall be cancelled and returned; otherwise the
sum of One Hundred Thousand Dollars ($100,000) with interest shall become
the property of the Authority as liquidated damages. In addition, the Principal
shall be liable to pay any judgment recovered by the Authority against the
Principal for actual damages.

 

IN WITNESS WHEREOF, the
Principal has caused these presents to be duly executed on this          
day of      , 1991.

 

 

	
  ATTEST:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Secretary

  	
  President

  

 

EXHIBIT H

 

 

AMENDMENT

TO

LEASE AND OPERATING AGREEMENT

 

This Amendment to Lease
and Operating Agreement dated June 12, 1991, is entered into by and between the
Boca Raton Airport Authority (hereinafter “Lessor”) and Boca Arena, Inc.
(hereinafter “Lessee”),

 

WHEREAS, the Lease and
Operating Agreement dated June 12, 1991, between the parties came into
technical default by the Lessee on April 2, 1992, and,

 

WHEREAS, the parties are
desirous of proceeding with the project and curing any technical default by
entering into this Amendment to Lease, and,

 

WHEREAS, the Lessee has,
by entering into this Amendment, exercised the Option to Lease, dated June 12,
1991, to extend the leased Premises an additional 3.3 acres.

 

NOW THEREFORE, in
consideration of the premises and mutual covenants contained in this Amendment,
the parties agree as follows:

 

1.             That Article III (A), entitled Rights, Obligations and
Minimum Operating Standards is hereby amended to add the following:

 

Additional
approved uses are a miniature golf course, “Indy” car track and roller rink
building. Other amenities shall be defined to mean other activities incidental
to and consistent with the said recreational facility, including, but not
limited to, children’s play area made of soft material, game and party rooms.
No other uses shall be permitted without written approval of the Lessor.

 

1

 

2.             That a new provision, Article III (B)(15), entitled Minimum
Operating Standards, is hereby added as follows:

 

15.           The Lessee shall
prohibit the sale, possession or consumption of alcoholic beverages on the leased
premises, except for special affairs, when this provision may be waived by
Lessor.

 

3.             That a new provision, Article III (B), (16), entitled, Minimum
Operating Standards, is hereby added as follows:

 

16.           Lessee shall install
a chain link fence or equivalent to secure the Airport operations area from Lessee’s
improved area. Lessee shall install a gate to block access to Lessee’s parking
area during hours when Lessee’s premises are not open for business, equipped with
a lock approved by the Boca Raton Fire Department. Where reasonably requested
by the Airport Director, Lessee shall provide a wall to protect against jet blast
and shall install airport approved obstruction lighting.

 

Lessee shall
provide adequate security on the premises at all times. At least sixty (60)
days prior to the opening of the Phase 1 improvements, Lessee shall submit to
Lessor, a two part security plan. Part 1 of the security plan shall provide the
policy and procedures to be used on site to secure the safety of persons and
property on the adjacent Airport operations area. Part 2 of the security plan
shall provide the policy and procedures to be used to secure the Sports Complex
and the safety of persons and property in the Sports Complex. The Lessor may
suggest amendments to the security plan for Lessee’s consideration.

 

If security
problems arise despite the security measures described above, the Lessor shall
notify the Lessee in writing and Lessee shall promptly add such security
measures and/or personnel as are necessary to alleviate such problems to the
satisfaction of the Airport Authority.

 

4.             That Article V, entitled Leasehold Improvements, is
hereby deleted in its entirety and replaced as follows:

 

2

 

ARTICLE V

LEASEHOLD IMPROVEMENTS

 

1.             As part of the
consideration for the privileges herein granted, Lessee agrees to construct or
otherwise make new and additional improvements, which shall become part of the
real estate (except equipment) and which shall be constructed as Phase 1 and
Phase 2. The Phases shall consist of the following:

 

	
  Phase l:

  	
   

  	
  Miniature Golf Courses

  Batting Range

  Roller Rink building; 20,000 square feet

  “Indy” car track

  Required parking,

  Entrances, exits

  Required landscaping including temporary landscaping of the Phase 2 building
  site.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Value: $2,000,000.00 

  	
  (building, including all fees and costs associated
  therewith) 

  
	
   

  	
   

  	
  $   500,000.00
  

  	
  (equipment)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date of Completion: One (1) year from the date of
  this Amendment

  
	
   

  	
   

  	
   

  
	
  Phase 2:

  	
   

  	
  Boca Arena building; 60,000 square feet

  Required parking,

  Entrances, exits,

  Required landscaping 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Value: $4,000.000.00

  	
  (Including all fees and costs associates therewith)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date of Completion:

  	
  Five (5) years from the date of this Amendment

  

 

Said improvements
shall be of permanent construction affixed to the real estate and shall meet or
exceed Lessor’s specifications, local, county, state or federal codes, and FAA
requirements, and be consistent with the approved Airport Master Plan.

 

All improvements
of Lessee shall be solely at Lessee’s cost and expense and shall be performed
in a good workmanlike manner in accordance with sound construction practices.
Lessee shall keep the premises and any improvements free and clear of all

 

3

 

liens for labor and material, and shall hold Lessor harmless
from any liability with respect to Lessee’s work. Lessee shall pay all impact
and other governmental fees and charges.

 

(a)        Lessee agrees to use due diligence to obtain
appropriate permits for the construction of the leasehold improvements as soon
as possible and to complete the construction of the leasehold improvements of Phase
1 within one year plus a grace period of six (6) months plus extensions for
delays per Article V, 1 (e) of the Lease and of Phase 2 within five years of
the date of this Amendment. Notwithstanding any provision contained herein,
Lessor shall not exercise its remedy of Lease termination in the event Lessee
fails to complete construction of the Phase 2 leasehold improvements within
five (5) years of the date of this Amendment. Lessor’s sole remedy in such
event shall be the declaration of forfeiture of Lessee’s $100,000.00
performance bond described below.

 

(b)       To secure the full performance by Lessee
of the obligations under the Lease, Lessee shall, on or before April 20, 1992, provide
and deliver to the Lessor a performance bond (Exhibit “H”) in the amount of  $100,000.00, secured by cash or a letter of
credit, approved as to form by Lessor’s Treasurer and attorney. If the security
for the bond is a cash deposit, Lessor’s Treasurer shall invest the same in a certificate
of deposit for a term of ninety (90) days and shall renew the same each ninety
(90) days thereafter, unless a longer term is mutually agreed upon in writing. Upon
the cancellation of this Lease under Article I, paragraph C or D, above, or, if
not cancelled, upon completion of the leasehold improvements, Lessor shall
either endorse and deliver the certificate of deposit with interest to Lessee
or cancel and return the letter of credit to Lessee. If Lessee fails to complete
the Phase 2 leasehold improvements, described above, within five (5) years from
the date of this Amendment, Lessor may declare the bond forfeited whereupon
either the certificate of deposit with interest or the funds obtained by
calling the letter of credit shall become the sole property of Lessor as
liquidated damages in addition to any and all other

 

4

 

remedies provided to
Lessor under the Lease.

 

(c)        In case of a dispute between the parties
as to whether or not the sums set forth in (A)(1), above, have been expended in
actual cost of the leasehold improvements or as to whether the improvements
have been completed, the dispute shall be referred to the Chief City Engineer
of the city of Boca Raton, whose decision as a common law arbitrator will be
final and binding upon the parties and upon the courts. If the Chief Engineer of
the City is unable or unwilling to serve and the parties are unable to agree on
a substitute, the arbitrator shall be a civil engineer or architect appointed
by the Mayor of the City of Boca Raton. The costs of arbitration shall be paid
one-half by Lessee and one-half by Lessor.

 

(d)       In order to verify the actual costs of improvements,
Lessee shall, upon request of Lessor, at any time, submit to the Lessor or to
its designee, certain certified true and correct copies of all construction
contracts, invoices, bills, checks, or any other documents requested.

 

(e)        Any deadlines stated above shall be
extended for the length of any delay occasioned by an Act of God, force
majeure, union strike affecting contractors or by any act or failure to act on the
part of the Lessor or of any other governmental authority beyond the time
period stated below. If no time period is stated for an approval or rejection
by Lessor or any governmental authority, thirty (30) days shall be deemed the
time period allowed for the purpose of this paragraph. In the event any such
delays occur, within fifteen (15) days after such delay has ceased, Lessee
shall provide written notice to Lessor of the existence and duration of such delay.

 

2.             The improvements to
be constructed shall be consistent with the sketches and site plan (attached as
an Exhibit) presented by Lessee to Lessor at Lessor’s public meeting held on April
8, 1992. The Lessee shall submit to Lessor detailed plans and specifications
for the proposed leasehold improvements within 120 calendar days of the date of
this Amendment. Detailed plans and specifications shall be defined to mean
working drawing.

 

5

 

Lessor agrees that it
shall either approve the plans and specifications as submitted or transmit
proposed revisions to Lessee within thirty (30) calendar days of receipt of the
plans and specifications. In the event Lessor fails to either approve the plans
and specifications as submitted or transmit proposed provisions to Lessee
within the aforesaid thirty (30) calendar day period, such failure shall be
deemed an approval of such plans and specifications as submitted.

 

3.             After obtaining FAA
and Lessor’s approvals, Lessee shall obtain all city approvals in accordance
with the Memorandum of Understanding between Lessor and The City, dated
September 11, 1984, a copy of which is attached hereto and marked as Exhibit “D”.

 

4.             In the event the
Lessor or other governmental agencies require revisions of plans and
specifications, Lessee shall have thirty (30) calendar days from the date of
receipt of the proposed revisions to resubmit the plans and specifications for approval.
Lessor’s approval of plans and specifications shall not be unreasonably withheld.

 

5.             Upon receipt of
final approval of the plans and specifications by Lessor and other governmental
agencies and the issuance of City building permits, Lessee shall cause
construction to commence forthwith and to be scheduled for completion set forth
in paragraph A.1(a), above.

 

6.             All contractors
having contracts in excess of $10,000.00 relating the leasehold improvements
shall be required to provide performance and labor and material payments bonds
to be issued by substantial surety companies licensed to do business in Florida
and in form, substance and amount subject to approval by Lessor, which shall
not be unreasonably withheld. Bonds shall be for the benefit of Lessee and
Lessor, shall be delivered to Lessor no less than ten (10) days prior to
commencement of construction and shall remain in effect until completion and
acceptance of all work and the expiration of the warranty period following
acceptance, free and clear of all claims of mechanics, laborers, sub-contactors
and materiamen.

 

B.            It is agreed and understood that all improvements shall
automatically revert to Lessor upon the expiration of the initial term of this
Lease on May 31, 2041, free and clear of any and all mortgages, liens and
encumbrances, subject only to the terms of this Lease. No less than six (6)
months prior to the final expiration of the term of this Lease, Lessee shall
provide Lessor

 

6

 

with a Title Insurance Policy insuring the Lessor against loss or
damage for liens and encumbrances incurred by Lessee.

 

C.            No Liens Created.

 

Each party covenants and
agrees that it has no power to incur any indebtedness giving a right to a lien
of any kind of character upon the right, title and interest of the other party
in and to the property covered by this Lease, and that no person shall ever be
entitled to any lien, directly or indirectly derived through or under the other
party, or its agents or servants, or on account of any act or omission of said
other party, which shall be superior to the lien of this Lease reserved to the
Lessor upon the leased Premises. All persons contracting with the Lessee, or
furnishing materials or labor to said Lessee, or to its agents or servants, as
well as all persons whosoever, shall be bound by this provision of this Lease.
Should any such lien be filed, the Lessee shall discharge the same within
thirty (30) days thereafter, by paying the same or by filing a bond, or otherwise,
as permitted by law. The Lessee shall not be deemed to be the agent of the
Lessor, so as to confer upon a laborer bestowing labor upon the leased
Premises, or upon a materialman who furnished material incorporated in the
construction of improvements upon the leased Premises, a mechanic’s lien upon
the Lessor’s estate under the provisions of chapter 713, Florida Statutes,
1969, and subsequent revisions thereof. This provision shall be written into
all contracts for construction executed by Lessee.

 

7.             That Article VI (A), entitled, Rent, is amended to reflect
that Lessee shall pay the sum of $62,500.00, representing base ground rent for
the period June 12, 1992 through June 11, 1993, on or before April 20, 1992. In
addition, on or before June 11, 1992, Lessee shall pay base ground rent for the
“option property” in the amount of $3,333.33 per month for the period June 12,
1992 through June 11, 1993. Commencing June 12, 1993 and thereafter, the
combined ground rent shall be $205,000.00 per annum, payable in twelve monthly
installments of $17,083.34.

 

8.             That Article VI (A),(l), entitled, Cost of Living Adjustments,
is hereby amended to reflect that the combined

 

7

 

ground rent to be adjusted annually is the total of $205,000.00, which
includes $125,000.00 for the original rent amount, together with $80,000.00 in
option property rent. The annual adjustments shall not decrease the annual base
rent below $205,000.00.

 

9.             That Article XVIII (P), entitled Miscellaneous
Provisions, is amended to reflect that the written evidence of financial
ability required to be presented by the Lessee shall be in a form acceptable to
the Lessor’s attorney.

 

10.           That Exhibit A to the Lease, the
Airport Layout Plan, is amended to reflect the addition of the “option property”,
as depicted in the new Exhibit A, attached hereto and made a part hereof.

 

11.           That Exhibit B to the Option to
Lease, the survey and legal description, is incorporated by reference into
Exhibit B of the Lease and Operating Agreement to reflect the addition of the “option
property”.

 

12.           That Exhibit H to the Lease, the
Leasehold Performance Bond, is amended to reflect the changed bond provisions,
as depicted in the new Exhibit H, attached hereto and made a part hereof.

 

13.           That Article XVIII (O) is hereby
amended to incorporate the alterations set forth in Paragraph 4, above.

 

14.           That in the event the attorneys fees
and costs incurred by the Lessor in connection with this Amendment cause the administrative
expenses set forth in the Lease exceed the sum of $10,000.00 previously
deposited by Lessee, the Lessee shall

 

8

 

reimburse the Lessor said excess, upon receipt of an invoice from the
Lessor.

 

15.           That the remaining terms and
conditions set forth in the Lease and Operating Agreement not amended herein
shall remain in full force an effect.

 

16.           That the terms contained herein
constitute the full and complete agreement between the parties, and any
amendments, alterations or changes hereto shall be valid only if in writing, executed
by the parties.

 

 

	
   

  	
  BOCA RATON AIRPORT AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Robert E. Langavin

  	
   

  	
  By 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  SECRETARY

  	
  CHAIRMAN

  
	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
  LESSEE, BOCA ARENA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jolie Mullin

  	
   

  	
  By 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  SECRETARY

  	
  PRESIDENT

  
	
  (SEAL)

  	
   

  
						

 

9

 

Exhibit “B”

 

Prepared by/Return to:

 

W. Jeffrey Barnes,
Esq. 

Kauffman &
Schwartz, P.A. 

5355 Town Center
Road, Suite 301 

Boca Raton, Florida 33486

LEASE ASSIGNMENT

 

THIS LEASE ASSIGNMENT made and entered into this 7th
day of April, 1993, by and between BOCA ARENA, INC., a Florida corporation, and
BOOMER’s SPORTS & RECREATION CENTER, INC., a Florida corporation (“BOOMERS”).

 

WHEREAS, BOCA ARENA, INC. is the Lessee of that
certain Lease and Operating Agreement between Boca Raton Airport Authority, as
Lessor, and BOCA ARENA, INC., as Lessee, dated June, 12, 1991, hereinafter
referred to as the “Lease”; and

 

WHEREAS, there has been executed an Amendment to the
Lease dated April 20, 1992 (the “First Amendment”); and

 

WHEREAS, there has been executed an Amendment to the
Lease dated March 17, 1993 (the “Third Amendment”) which canceled and declared
null and void and of no further force and effect an Amendment to the Lease
dated December 9, 1992 (the “Second Amendment” as referred to in the Third
Amendment); and

 

WHEREAS, BOCA ARENA, INC. wishes to assign all of its
right, title and interest in the Lease and the First Amendment and Third
Amendment thereto to BOOMERS.

 

NOW, THEREFORE, in consideration of the covenants
contained herein the parties agree as follows:

 

1.                                       BOCA
ARENA, INC. hereby absolutely assigns all of its right, title and interest in
the Lease and the First Amendment and the Third Amendment thereto to BOOMERS,
which accepts such

 

 

assignment subject
to the terms and conditions set forth in this Assignment.

 

2.                                       The
parties agree and acknowledge that a copy of the Lease and all Amendments
thereto which are in force and effect, that being the First Amendment and Third
Amendment thereto, are marked as Composite Exhibit “A,” and are attached hereto
and made a part hereof. BOCA ARENA, INC. represents and warrants that there are
no other amendments to the Lease which are not specifically attached hereto and
made a part hereof.

 

3.                                       BOCA
ARENA, INC. represents and warrants that it is vested with an insurable
leasehold interest as to the real property the subject of the Lease.

 

4.                                       The
parties acknowledge that this Lease Assignment is specifically contingent upon
the written approval of Boca Raton Airport Authority as
required by Article XII of the Lease.

 

5.                                       The
parties agree to execute all documents and do all things necessary to obtain
any necessary approval of this Assignment from the State of Florida, if such
approval is required.

 

6.                                       The
parties hereto agree to execute all documents and do all things necessary to
obtain the approval of Boca Raton Airport Authority, Inc. for this Lease
Assignment.

 

7.                                       BOOMERS
hereby agrees to make all payments to Boca Raton Airport Authority as required
by the Lease, and hereby undertakes all obligations to make payments of all
charges to Boca Raton Airport Authority provided in the Lease as amended.

 

8.                                       The
consent by Boca Raton Airport Authority to this Assignment of Lease shall
constitute its approval of the assignment

 

2

 

of the June 12,
1991 Lease and the First Amendment and Third Amendments
thereto to BOOMERS.

 

9.                                       An
additional assignment of the Lease is permitted except reassignment to Boca
Arena, Inc. upon the approval of the Airport Authority and in accordance with the
existing terms of the Lease.

 

10.                                 This
Agreement may be executed in any number of counterparts, any of which shall be
construed and deemed to be an original.

 

11.                                 This
Agreement is the entire agreement between the parties with respect to the
subject matter hereof and may not be altered or modified except in writing
signed by all parties hereto, and this Agreement supersedes in all respects all
prior or contemporaneous written or oral understandings and agreements heretofore
existing between the parties hereto.

 

12.                                 In
the event suit is filed to enforce any party’s rights concerning this Agreement
or matters referred to herein, such suit shall be filed in a court having
appropriate jurisdiction in Palm Beach County, Florida, and the prevailing
party shall be entitled to receive its reasonable attorney’s fees and costs of suit.

 

13.                                 All
parties signatory hereto represent and warrant that they have executed this
Agreement of their own free will and volition, and that they were not under any
duress or coercion to do so.

 

3

 

14.                                 All
signatories hereto represent and warrant that they have executed this Agreement
with the advice and benefit of counsel, or that they have voluntarily declined same.

 

15.                                 This
Agreement shall be governed in all respects by the laws of the State of Florida.

 

IN WITNESS WHEREOF, the parties hereto have entered
into this Assignment the day and year first above written.

 

	
  Witnesses:

  	
  BOCA ARENA, INC.

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ Robert T. Mullin

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  Robert T. Mullin, President

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Jolie Mullin

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  Jolie Mullin

  	
   

  
	
   

  	
   

  	
   

  	
  Secretary

  	
   

  
	
  STATE OF FLORIDA

  	
  )

  	
   

  
	
   

  	
  )         ss:

  	
   

  
	
  COUNTY OF PALM BEACH

  	
  )

  	
   

  
								

 

BEFORE ME, personally appeared Robert T. Mullin, who
after being first duly sworn, affixed his hand and seal to this instrument
which was acknowledged before me this 7th day of April, 1993, by Robert T. Mullin,
who is:

 

ý         (a)
Personally known to me; or

 

o         (b)
Who has produced:                                          

(type of
identification)

 

and who (did/did-not)
take an oath.

 

	
  [SEAL]

  	
  /s/ Nina B. Michael

  	
   

  
	
   

  	
                         ,
  Notary Public

  
	
   

  	
  State of Florida

  
	
   

  	
  Commission No.:                 

  
	
  *       *      
  *       *       *      
  *

  
	
   

  	
  BOOMER’S SPORTS & RECREATION

  
	
   

  	
  CENTER,
  INC.

  

 

	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ Percy J. Orthwein

  
	
  [ILLEGIBLE]

  	
   

  	
  Percy J. Orthwein

  

 

4

 

	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph Ballarini

  
	
   

  	
   

  	
  Secretary

  
					

 

	
  STATE OF FLORIDA

  	
  )

  
	
   

  	
  )           ss:

  
	
  COUNTY OF PALM BEACH

  	
  )

  

 

BEFORE ME, personally appeared Percy J. Orthwein, who
after being first duly sworn, affixed his hand and seal to this instrument
which was acknowledged before me this 7th day of April, 1993, by                                              ,
who is:

 

o      (a)
Personally known to me; or

 

ý      (b)
Who has produced: Drivers License

(type of
identification)

 

and who (did/did-not)
take an oath.

 

	
  [SEAL]

  	
  /s/ Nina B. Michael

  
	
   

  	
                         ,
  Notary Public

  
	
   

  	
  State of Florida

  
	
   

  	
  Commission No.:                 

  

 

APPROVED BY: 
BOCA RATON AIRPORT AUTHORITY

 

	
  By:

  	
  /s/ George W. Blank

  	
   

  
	
   

  	
   

  	
  Chairman

  	
   

  
	
  Attest:

  	
  /s/ Robert E. Langavin

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
  Dated:

  	
  April 7, 93

  	
   

  
					

 

	
  STATE OF FLORIDA

  	
  )

  
	
   

  	
  )           ss:

  
	
  COUNTY OF PALM BEACH

  	
  )

  

 

BEFORE ME, personally appeared George W. Blank, who
after being first duly sworn, affixed his hand and seal to this instrument
which was acknowledged before me this 7th day of April, 1993, by
                                         ,
who is :

 

ý         (a)
Personally known to me; or

 

o         (b)
Who has produced:                                           

(type of
identification)

 

and who (did/did-not)
take an oath.

 

	
   

  	
  /s/ Nina B. Michael

  
	
   

  	
                         ,
  Notary Public

  
	
   

  	
  State of Florida

  
	
   

  	
  Commission No.:                  

  

 

[SEAL]

 

5

 

Prepared By and Return
To:

JAMES J. WHEELER, ESQ. 

BROAD AND CASSEL 

7777 Glades Road, Suite
300 

Boca Raton, FL  33434

 

MEMORANDUM OF LEASE

 

This Memorandum of Lease is entered into by and between Boca Raton
Airport Authority (the “Authority”) and Boomer’s Sports & Recreation
Center, Inc., a Florida corporation (“Boomer’s”).

 

The Authority entered into that certain Lease and Operating Agreement
for Boca Raton Airport dated June 12, 1991 (the “Lease”), with Boca Arena,
Inc., a Florida corporation (“Boca Arena”). The Lease has been amended by the
First, Third and Fourth Amendments thereto. The Second Amendment has been
canceled, declared null and void and of no further force and effect. Boca Arena
has assigned the Lease to Boomer’s by Lease Assignment dated April 7, 1993. The
Lease encumbers the property attached hereto as Exhibit “A”. The Termination
Date of the Lease is May 31, 2041.

 

	
   

  	
   

  	
  BOCA RATON AIRPORT AUTHORITY

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  
	
  Name:

  	
  [ILLEGIBLE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Nina B. Michael

  	
   

  	
  By:

  	
  /s/ George W. Blank, Chairman

  
	
  Name:

  	
   Nina B. Michael

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  05/20/93

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  BOOMER’S SPORTS & RECREATION CENTER,

  
	
   

  	
   

  	
   

  	
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Janine M. Laduke

  	
   

  	
   

  
	
  Name:

  	
  Janine M. Laduke

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Nancy E. Preece

  	
   

  	
  By:

  	
  /s/ Percy J. Orthwein, II

  
	
  Name:

  	
  Nancy E. Preece

  	
   

  	
   

  	
  Percy J. Orthwein, II, President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  June 11, 1993

  
						

 

[Acknowledgments
on Next Page]

 

 

STATE OF FLORIDA

 

COUNTY OF PALM BEACH

 

The foregoing instrument was acknowledged before me this 20th day of
May, 1993, by George W. Blank, as Chairman of the Boca Raton Airport Authority,
who is personally known to me or who has produced a Florida driver’s license as
identification and who did not take an oath.

 

 

	
  [SEAL]

  	
   

  	
  /s/ Nina B. Michael

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
  Name:

  	
  Nina B. Michael

  
	
   

  	
   

  	
  Commission Expires:

  	
  01/14/96

  
	
   

  	
   

  	
  Serial Number:

  	
  CC 174163

  
						

 

STATE OF FLORIDA

 

COUNTY OF PALM BEACH

 

The foregoing instrument was acknowledged before me this 11th
day of June, 1993, by Percy J. Orthwein, II as President of Boomer’s Sports
& Recreation Center, Inc., who is personally known to me or who has produced
a Florida driver’s license as identification and who did not take an oath.

 

 

	
  [SEAL]

  	
   

  	
  /s/ Janine M. Laduke

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
  Name:

  	
  Janine M. Laduke

  
	
   

  	
   

  	
  Commission Expires:

  	
  10/2/95

  
	
   

  	
   

  	
  Serial Number:

  	
  CC 149171

  
						

 

2

 

THIRD AMENDMENT TO LEASE AND OPERATING AGREEMENT

(BOCA ARENA/BOCA SPORTSPLEX)

 

THIS AMENDMENT
dated 17 day of March, 1993 to
Lease and Operating Agreement dated June 12, 1991 is entered into by and
between the BOCA RATON AIRPORT AUTHORITY (hereinafter “Lessor”) and BOCA ARENA,
INC. (hereinafter “Lessee”).

 

WHEREAS, the
parties entered into a Lease and Operating Agreement dated June 12, 1991
(hereinafter the “Lease”) and an Amendment executed on or about April 20, 1992
(hereinafter the “First Amendment”) and Lessee’s assignee Boca Sportsplex, Inc.
entered into a Second Amendment to Lease and Operating Agreement dated December
9, 1992 (hereinafter the “Second Amendment”); and

 

WHEREAS, the Lessee assigned all of its right, title and interest in the
Lease to Boca Sportsplex, Inc. by Lease Assignment dated April 20, 1992 which
was revoked by the assignee on January 19, 1993; and

 

WHEREAS, Lessor notified Lessee on February 24, 1993 that Lessee was in
default of certain provisions of the Lease and was given thirty (30) days to
cure and remedy its defaults; and

 

WHEREAS, the parties wish to proceed with the project and compromise
and settle any existing disputes between them.

 

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED IN
THIS AMENDMENT, the parties agree as follows:

 

1.                    The
Second Amendment is hereby cancelled, declared null and void and of no further
force and effect.

 

2.                    In
respect to the insurance requirements contained in the Lease at Article VIII,
B(3) - Public Premises and Automobile Liability Insurance Minimums,
Lessee agrees at all times during the term of the Lease and any extension or
renewal thereof to provide combined single limit coverage for personal injury
and property damage in the minimum amount of $2,000,000 per occurrence.

 

3.                    In
respect to street lighting, Lessee agrees to reimburse the Lessor for the cost of
providing street lighting along Airport Road adjacent to Lessee’s leasehold.

 

4.                    Lessee
agrees on or before March 17, 1993 to deposit with Lessor’s Treasurer the sum
of $125,000 cash to be used for the following purposes:

 

(a)                                             Construction
of a blast wall (engineering estimated cost $73,153);

(b)                                            Construction
of a fence (engineering estimated cost $8,505);

(c)                                             Construction
of the water retention control structure (Authority’s estimated cost $25,000);

 

 

(d)                                            Excavate
and grade additional water retention/detention capacity within the airport
water retention/detention system adequate to accommodate Lessee’s development.
(Engineering estimated cost $60,000).

 

It is understood that
there will be no refund or additional charge for the above items regardless of
the actual final cost. However, if the Lessor terminates the Lease before it is
obligated under contract to go ahead with construction of the blast wall it shall
refund $73,153 to the Lessee.

 

5.                                             On
or before March 17, 1993, Lessee will pay Lessor the outstanding invoice for
administrative expenses in the amount of $7,609.33. In the event administrative
costs incurred by the Lessor in connection with the Lease and Amendments and
the undertakings herein cause the administrative expenses to exceed the present
total invoice which is $17,609.33 (less the $10,000 deposit previously paid),
the Lessee agrees to reimburse the Lessor said excess upon receipt of an invoice
from the Lessor therefor. The Lessor will not invoice any additional charges
for administrative expenses incurred prior to January 19, 1993 and it is agreed
that the charges from that date to the date hereof amount to the sum of
$2,000.00.

 

6.                                             On
or before March 17, 1993 Lessee will comply with Article XII.A of the Lease
including providing a current Exhibit “E” and a copy of the stock purchase or
other agreement relating to Mr. Ballarini and other shareholders and their
curricula vitae.

 

7.                                             A
copy of the current site plan of the proposed improvements is attached hereto,
made part hereof and marked “Amendment Three Exhibit A”.

 

8.                                             On
or before April 10, 1993, Lessee will submit written evidence satisfactory to
the Authority that mortgage commitments and/or letters of credit have been
issued by responsible financial institutions in the amount of $2,400,000 to
finance the construction of all the Phase 1 improvements upon the premises.
*Upon application to the city for a building permit for construction of the
Phase 2 improvements, Lessee will submit written evidence satisfactory to the
Authority that mortgage commitments and/or letters of credit have been issued
by responsible financial institutions in the amount of $4,000,000* to finance
the construction of the Phase 2 improvements upon the premises. In each case such
written evidence shall be in a form acceptable to Lessor’s attorney, or
collateralized personal guarantees.

 

9.                                             On
or before June 10, 1993, Lessee shall submit to Lessor detailed plans and specifications,
i.e., working drawings, for the proposed Phase 1 leasehold improvements. If, on
or before October 20, 1993, Lessee shall have broken ground for the
construction of Phase 1 improvements pursuant to all necessary building
permits, Lessor shall not exercise its remedy of Lease termination. However,
Lessor reserves its rights under the Leasehold Improvements Bond dated April
20, 1992 and the Letter of Credit dated May 6, 1992 securing the same.

 

2

 

10.                                        In
the event of default by Lessee in the undertakings set forth in paragraphs 1
through 9 hereof, Lessee waives the provision of Article XV 3(a) which gives
the Lessee thirty (30) days to cure after notice and agrees that it will be
obliged to cure within ten (10) days after notice only as to items “1” through “9”
hereof.

 

11.                                        In
consideration of the prompt performance by Lessee of the foregoing
undertakings, Lessor agrees to provide offsite water retention/detention for
the leasehold improvements on the leased premises. Lessee agrees to cooperate
as co-permittee on the airport’s storm water discharge permit as it relates to
the Lessee’s premises including liability therefor and Lessee agrees to cure
any violation of the permit originating on its leasehold immediately upon
receipt of notice of such violation.

 

12.                                        In
the event Lessee disputes any amounts invoiced by Lessor pursuant to paragraph
5 for charges incurred after the date hereof, Lessee shall pay the same with a
written notice to Lessor specifying the charge protested and if the parties are
unable to resolve the dispute, Lessee may file in arbitration for a refund
pursuant to Article XVI of the Lease.

 

13.                                        The
terms and conditions set forth in the Lease, the First Amendment and this
Amendment which have not been amended herein shall remain in force and effect.
Time is of the essence of this agreement.

 

14.                                        The
terms contained herein constitute the full and complete agreement between the
parties and any amendments, alterations, or changes hereto shall be valid only
if in writing executed by the parties.

 

IN WITNESS WHEREOF, the parties have caused their respective officers
to execute this Amendment on the day and date first above written whereupon the
notice of default issued on February 24, 1993 shall be deemed withdrawn and of
no further effect.

 

	
  ATTEST:

  	
  BOCA RATON AIRPORT AUTHORITY

  
	
   

  	
  LESSOR

  
	
   

  	
   

  
	
  /s/ Robert E. Langavin

  	
   

  	
  /s/ George W. Blank 

  
	
  Secretary

  	
  Chairman

  
	
  (seal)

  	
   

  
	
   

  	
  BOCA ARENA, INC, LESSEE

  
	
   

  	
   

  
	
  /s/ Jolie Mullin

  	
   

  	
  /s/ [ILLEGIBLE] 

  
	
  Secretary

  	
  President

  

 

3

 

 

FOURTH AMENDMENT TO LEASE AND OPERATING AGREEMENT/

BOOMER’S SPORTS AND RECREATION, CENTER, INC. WITHOUT
COLLATERAL

AND WITHOUT PERFORMANCE BONDS

 

THIS AMENDMENT
dated the 21st day of April, 1993 to Lease and Operating Agreement dated June
12, 1991 between the BOCA RATON AIRPORT AUTHORITY (hereinafter “Lessor”) and
BOOMER’S SPORTS AND RECREATION CENTER, INC. (hereinafter “Lessee”).

 

WHEREAS, Lessor approved the assignment of the Lease and Operating Agreement
dated June 12, 1991 (hereinafter “the Lease”), as amended, from Boca Arena,
Inc. to Lessee on April 7, 1993, and

 

WHEREAS, the Third Amendment to the Lease provided that on or before
March 17, 1993, Lessee would submit written evidence satisfactory to the
Authority that mortgage commitments and/or letters of credit have been issued
by responsible financial institutions in the amount of $2,400,000 to finance
the construction of all the Phase One improvements upon the premises or would
submit collateralized personal guarantees; and

 

WHEREAS, in consideration of certain contributions of capital to be
paid by Lessee to Lessor for infrastructure improvements, Lessor has agreed to
waive several Lease requirements;

 

WHEREAS, the parties have agreed upon a form of a personal guarantee
and other provisions concerning the same which they wish to incorporate in this
Amendment.

 

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED IN
THIS AMENDMENT, the parties agree as follows:

 

1.                                         The
principals of Lessee agree to execute and Lessor agrees to accept the form of
Irrevocable Personal Guaranty of Completion of Construction of Phase One,
without collateral (Personal “Guaranty”), a copy of which is attached hereto
and marked Exhibit “A”, which calls for P.J. Orthwein, James B. Orthwein and
Joseph Ballarini to guarantee $800,000.00 each.

 

2.                                          In
respect to Phase I improvements, Lessor waives the requirement contained in
Article V, A, subparagraph 6 of the Lease, namely that all contractors shall be
required to provide performance and labor and materials bonds (“performance
bonds”). Lessor has granted this waiver at Lessee’s request because the
principals have personally guaranteed the completion of construction of Phase I
as set forth in paragraph 1. This waiver, however, shall not apply to Phase II
of the Leasehold Improvements.

 

 

3.                                            In
consideration of Lessor’s waiver of collateral to secure the Personal Guarantee
which was called for in the Third Amendment, waiver of joint and several
personal guarantees and waiver of performance bonds, Lessee agrees to pay
Lessor upon execution of this Amendment the sum of $25,000.00 as additional
contribution to funding for the water retention/detention project described in
paragraph 4(d) of the Third Amendment. The total contribution by Lessee of
$150,000.00 in lieu of the $125,000.00 set forth in paragraph 4 of the Third
Amendment.

 

4.                                            The
Lessee shall have until June 6, 1993 to conduct a level one environmental audit
of the leasehold at its expense and shall report the results to the
Lessor.  If such environmental audit
shows the site to be unfeasible for the Lessee’s project, Lessee may cancel the
Lease by delivering written notice to Lessor on or before June 10, 1993, whereupon
there shall be no further liability to either party and such cancellation shall
be Lessee’s sole remedy.

 

5.                                          Notwithstanding
any other provision in the Personal Guaranty, the Lessor may enforce the same
only upon Lessee’s default under the Lease and after the expiration of all cure
periods applicable thereto. The parties acknowledge that the following
deadlines are set forth in the Lease:

 

(i) On or before June 10, 1993, Lessee shall submit to the Lessor
detailed plans and specifications for the project,

 

(ii) Construction must commence on or before October 20, 1993, meaning
that all required building permits have been issued by the appropriate
governmental authorities and groundbreaking for footers and foundation has
commenced; and

 

(iii) Construction must be completed in accordance with Article V.l(a).

 

Lessee and Lessor acknowledge that these deadlines shall be extended
for the length of any delay occasioned by an act of God, force majeure, union
strike affecting contractors or by any act or failure to act on the part of the
Lessor or any governmental authority beyond the time period stated in the Lease
as amended. If no time period is stated for an approval or rejection by Lessor,
then thirty (30) days shall be deemed the time period allowed for the purpose
of this provision. In the event any such delay occurs, the time period shall
not be extended unless within fifteen (15) days after such delay has ceased,
Lessee shall provide written notice to the Lessor of the existence and duration
of such delay. In the event Lessee terminates the Lease pursuant to paragraph 4
above or in the event the Lessor terminates the Lease prior to the commencement
of construction of the Leaseholds Improvements, and all cure periods have
expired, then the Personal Guaranty shall be null and void for the purpose of this
Agreement.

 

2

 

6.                                            This
Agreement shall be governed by and construed under the laws of the State of
Florida.

 

7.                                            The
Legal description for the Phase I and Phase II property to the Lease as amended
is confirmed by both parties and is attached as Exhibit “B” hereto.

 

8.                                             Except
as amended in the Fourth Amendment, the Lease and Amendments One and Three
thereto are unchanged and remain in full force and effect.

 

IN WITNESS
WHEREOF, the parties have caused their respective officers to execute this
Amendment on the day and date first above written.

 

	
  ATTEST:

  	
  BOCA RATON AIRPORT AUTHORITY

  
	
   

  	
  LESSOR

  
	
   

  	
   

  
	
  /s/ Robert E. Langavin 

  	
   

  	
  /s/ George W. Blank

  
	
  Secretary

  	
  Chairman

  
	
   

  	
   

  
	
   

  	
  BOOMER’S SPORTS AND RECREATION

  
	
   

  	
  CENTER, INC.

  
	
   

  	
   

  
	
  /s/ Joseph Ballarini

  	
   

  	
  /s/ Percy J. Orthwein II

  
	
  Secretary

  	
  President

  

 

3

 

IRREVOCABLE PERSONAL GUARANTY OF

COMPLETION OF CONSTRUCTION OF PHASE
ONE

 

In consideration
of the approval by Lessor of the Assignment to Boomer’s Sports and Recreation
Center, Inc. (“Boomer’s”) of the Lease and Operating Agreement and Amendments (“the
Lease”) between Boca Raton Airport Authority, Lessor and Boca Arena, Inc.,
Lessee, and for other good and valuable consideration, the undersigned
principals of Boomer’s (hereinafter “the Lessee”) hereby each personally
guarantees to the percentages of $2,400,000.00 shown next to each signature,
that the Lessee will commence, complete and pay in full for the construction of
the Leasehold Improvements designated as Phase One in the April 20, 1992
Amendment (First Amendment) to the Lease, in accordance with all the conditions
and provisions of the Lease, and to this end the undersigned pledge, their
personal finances and assets and hereby waive the right to require the Lessor
to proceed against the Lessee or to pursue any other remedy the Lessor may have
and agree that the Lessor may proceed against the undersigned directly and
independently of the Lessee and that cessation of liability of the Lessee for
any reason other than full performance or any impairment of the Lessor’s
remedies or rights against the Lessee because of bankruptcy or otherwise shall
not in any way affect the liability of the undersigned hereunder. The
undersigned hereby waive the right to trial by jury if there is litigation
pursuant to this guarantee and if Lessor incurs costs and/or attorney’s fees
(including those on appeal) in connection with this guarantee, the undersigned
agree to promptly reimburse Lessor therefor. Jurisdiction and venue of any
legal action shall be in Palm Beach County, Florida. Jurisdiction and venue of
any legal action shall be in Palm Beach County, Florida. This guarantee will
continue and be irrevocable until the issuance of a certificate of occupancy
for all the leasehold improvements designated as Phase One in the First
Amendment and thereafter until all fees, costs, and expenses in connection
therewith have been paid in full and until any litigation in connection with
the construction or with this guarantee has been totally concluded, settled and
terminated.

 

IN WITNESS whereof and intending to be legally bound hereby, the
undersigned have set their hands and seals this 23rd day of April,
1993.

 

	
   

  	
  Guarantors:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ James B. Orthwein, Jr. 33 1/3 %

  	
  (Seal)

  	
  /s/ Percy J. Orthwein 33 1/3%

  	
  (Seal)

  
	
   

  	
  JAMES B. ORTHWEIN, Jr.

  	
  PERCY J. ORTHWEIN, II

  
					

 

	
   

  	
  /s/ Joseph Ballarini. 33 1/3 %

  	
  (Seal)

  	
   

  	
   

  
	
   

  	
  Joseph Ballarini

  	
   

  

 

 

STATE
OF FLORIDA 

COUNTY
OF PALM BEACH

 

The foregoing instrument
was acknowledged before me this 23rd day of April, 1993 by James B. Orthwein,
Jr. Percy J. Orthwein, II and Joseph Ballarini, who are personally known to me
and who (did not) take an oath.

 

	
   

  	
  /s/ Trudy A. Nadreau

  	
   

  
	
   

  	
  Notary public, TRUDY A. NADREAU

  
	
   

  	
  State of Florida

  

 

	
  [SEAL]

  	
   

  	
   

  

 

EXHIBIT “A”

 

 

EXHIBIT “B”

 

A portion of Section 13, Township 47 South, Range 42
East, Palm Beach County, Florida, being more particularly described as follows:

 

Commencing at the Point of Intersection of a line
parallel with and 300.00 feet Southeast of, as measured at right angles to, the
Southeast right-of-way line of the Seaboard Airline Railroad with the West line
of Section 7, Township 47 South, Range 43 East, said point board N 00 °
59’ 39” W, a distance of 2171.45 feet from the southwest corner of said Section
7, said point being further described as the Point of Intersection of the Southeasterly
limited [ILLEGIBLE] Right-of-Way line of R-95, as shown on State Road
Department Right-of-Way Map, (Job No. 93220-2411, sheet 12a, dated 2/16/71,
revised last, 8/7/72) and the Southerly right-of-way line of N.W. 40th Street
(as shown on aforementioned map) with the West line of said section 7; thence S
44°
41’ 19” W, along a line parallel with and 300.00 feet Southeasterly of, as
measured at right angles to, the said Southeasterly right-of-way line of the
Seaboard Airline Railroad, a distance of 3376.00 feet; thence S 45°
18’ 42” E along the Northeasterly right-of-way line of Airport Road, as shown
on Road Plat Book 6, Pages [ILLEGIBLE] 77, of the Public Records of Palm Beach
County, Florida, a distance of 100.00 feet, thence N 44°
41’ 19” E, a distance of 70.05 feet; thence S 45°
18’ 41” S, a distance of 60.00 feet; thence S 44°
41’ 19” W a distance of 76.05 feet to the point of curvature of a circular
curve to the left; thence Westerly and Southerly along the arc of said curve,
having a radius of 6419.58 feet, through a central angle of 15°
39’ 66” an arc distance of 1575.07 feet to the POINT OF BEGINNING; thence S 64°
20’ 47” E a distance of 176.02 feet; thence S [ILLEGIBLE] a distance of 75.16
feet; thence N 28° 39’ 15” W a distance of 09.67 feet; thence S 46°
40’ 10” E a distance of 293.00 feet; thence S 44°
19’ 42” W a distance of 195.50 feet; thence S 89°
19’ 42” W a distance of 101.02 feet; thence S 44°
19’ 42” W a distance of 557.32 feet; thence N 37°
08’ 27” W a distance of 23.48 feet to the Point of Curvature of a curve concave
to the Northeast, having a radius of 132.67 feet and a central angle of 53°
56’ 43”; thence Westerly and Northerly along the arc of said curve a distance
of 124.91 feet; thence N 73° 11’ 44” W distance
of 25.00 feet to a point of intersection with the Easterly Right-of-Way line of
the road shown on Road Plat Book 6, Pages 76 and 77 of the Public Records of
Palm Beach County, Florida; said point being on the arc of a curve concave to
the East, having a radius of 3947.20 feet; to which point of intersection a
radial line board N 73° 11’ 44” W; thence
Northerly along the arc of said curve and through a central angle of 06°
09’ 17” a distance of 424.02 feet to a point of compound curvature with a curve
concave to the East, having a radius of [ILLEGIBLE] feet; thence continue
Northerly along the arc of said curve and through a central angle of 05°
04’ 40” a distance of 400.50 feet to the POINT OF BEGINNING; the last two
courses being coincident with said [ILLEGIBLE] road Right-of-Way line.

 

Said lands situate, lying and being in Palm Beach
County Florida.

 

 

A portion of Section 13, Township 47 South, Range 42
East, Palm Beach County, Florida, being more particularly described as follows:

 

Commencing at the Point of Intersection of a line
parallel with and 300.00 feet Southeast of, as measured at right angles to,
Southeast right-of-way line of the Seaboard Airline Railroad with the West line
of Section 7, Township 47 South, Range 43 East, said point being N 00°
89’ 39” W, a distance of 2171.45 feet from the Southwest corner of said Section
7, said point being further described as the Point of Intersection of the
Southeasterly limited [ILLEGIBLE] Right-of-Way line of I-95, as shown on State
Road Department Right-of-Way Map, (Job No. 93220-2411, sheet [ILLEGIBLE] dated
2/15/71, revised list, 8/7/72) and the Southerly right-of-way line of N.W. 40th Street (as shown
on aforementioned map) with the West line of said Section 7; thence S 44°
41’ 19” W, along a line parallel with and 300.00 feet Southeasterly of, as
measured at right angles to, the said Southeasterly right-of-way line of the
Seaboard Airline Railroad, a distance of 3376.00 feet; thence S 45°
18’ 41” E along the Northeasterly right-of-way line of Airport Road, as shown
on Road Plat Book 6, Pages 76 and 77, of the Public Records of Palm Beach County,
Florida, a distance of 100.00 feet; thence N 44°
41. 19” E, a distance of 76.85 feet; thence S 45°
18’ 41” E, a distance of 60.00 feet; thence S 44°
41’ 19” W a distance of 76.00 feet to the Point of curvature of a curve concave
to the Southeast; thence Westerly and Southerly along the arc of said curve,
having a radius of 6419.68 feet, through a central angle of S 14°
57’ 27” a distance of 1414.81 feet to the POINT OF BEGINNING; thence S 64°
20’ 47” E a distance of 199.54 feet; thence S 45°
40’ 10” [ILLEGIBLE] a distance of 425.37 feet; thence S 44°
19’ 42” W a distance of 471.12 feet; thence S 89” 19’ 42” W a distance of 28.28
feet; thence N 44° 19’ 42” E a distance of 195.50 feet; thence N 45°
40’ 18” W a distance of 293.00 feet; thence N 25°
39’13” E a distance of 88.67 feet; thence N 05°
18’ 37” W a distance of 75.15 feet; thence N 64°
20’ 47” W a distance of 175.02 feet to an intersection with a non-tangent curve
concave to the Southeast, whose radius bears S 61°
57’ 47” E from that point; thence Northeasterly along the arc of said curve and
along the Easterly right-of-way of the road shown on Road Plat Book 6, Pages 76
and 77 of the Public Records of Palm Beach County, Florida, through a central
angle of 01° 41’ 39” a distance of 160.26 feet to the POINT
OF BEGINNING.

 

Said lands situate, lying and being in Palm Beach
County Florida.

 

2

 

Exhibit “B”

Prepared by/Return to:

 

W. Jeffrey Barnes,
Esq. 

Kauffaan &
Schwartz, P.A. 

5355 Town Center
Road, Suite 301 

Boca Raton, Florida 33466

 

LEASE ASSIGNMENT

 

THIS LEASE ASSIGNMENT made and entered into this 7th
day of April, 1993, by and between BOCA ARENA, INC., a Florida corporation, and
BOOMER’s SPORTS & RECREATION CENTER, INC., a Florida corporation (“BOOMERS”).

 

WHEREAS, BOCA ARENA, INC. is the Lessee of that
certain Lease and Operating Agreement between Boca Raton Airport Authority, as
Lessor, and BOCA ARENA, INC., as Lessee, dated June 12, 1991, hereinafter
referred to as the “Lease”; and

 

WHEREAS, there has been executed an Amendment to the
Lease dated April 20, 1992 (the “First Amendment”); and

 

WHEREAS, there has been executed an Amendment to the
Lease dated March 17, 1993 (the “Third Amendment”) which canceled and declared
null and void and of no further force and effect an Amendment to the Lease
dated December 9, 1992 (the “Second Amendment” as referred to in the Third
Amendment); and

 

WHEREAS, BOCA ARENA, INC. wishes to assign all of its
right, title and interest in the Lease and the First Amendment and Third
Amendment thereto to BOOMERS.

 

NOW, THEREFORE, in consideration of the covenants contained
herein the parties agree as follows:

 

1.                                       BOCA
ARENA, INC. hereby absolutely assigns all of its right, title and interest in
the Lease and the First Amendment and the Third Amendment thereto to BOOMERS,
which accepts such

 

 

assignment subject to the
terms and conditions set forth in this Assignment.

 

2.                                       The
parties agree and acknowledge that a copy of the Lease and all Amendments thereto
which are in force and effect, that being the First Amendment and Third
Amendment thereto, are marked as Composite Exhibit “A,” and are attached hereto
and made a part hereof. BOCA ARENA, INC. represents and warrants that there are
no other amendments to the Lease which are not specifically attached hereto and
made a part hereof.

 

3.                                       BOCA
ARENA, INC. represents and warrants that it is vested with an insurable
leasehold interest as to the real property the subject of the Lease.

 

4.                                       The
parties acknowledge that this Lease Assignment is specifically contingent upon
the written approval of Boca Raton Airport Authority as
required by Article XII of the Lease.

 

5.                                       The
parties agree to execute all documents and do all things necessary to obtain
any necessary approval of this Assignment from the State of Florida, if such
approval is required.

 

6.                                       The
parties hereto agree to execute all documents and do all things necessary to
obtain the approval of Boca Raton Airport Authority, Inc. for this Lease
Assignment.

 

7.                                       BOOMERS
hereby agrees to make all payments to Boca Raton Airport Authority as required
by the Lease, and hereby undertakes all obligations to make payments of all
charges to Boca Raton Airport Authority provided in the Lease as amended.

 

8.                                       The
consent by Boca Raton Airport Authority to this Assignment of Lease shall
constitute its approval of the assignment

 

 

of the June 12, 1991
Lease and the First Amendment and Third Amendments
thereto to BOOMERS.

 

9.                                       An
additional assignment of the Lease is permitted upon the approval of the
Airport Authority and in accordance with the existing terms of the Lease.

 

10.                                 This
Agreement may be executed in any number of counterparts, any of which shall be
construed and deemed to be an original.

 

11.                                 This
Agreement is the entire agreement between the parties with respect to the
subject matter hereof and may not be altered or modified except in writing
signed by all parties hereto, and this Agreement supersedes in all respects all
prior or contemporaneous written or oral understandings and agreements heretofore
existing between the parties hereto.

 

12.                                 In
the event suit is filed to enforce any party’s rights concerning this Agreement
or matters referred to herein, such suit shall be filed in a court having
appropriate jurisdiction in Palm Beach County, Florida, and the prevailing
party shall be entitled to receive its reasonable attorney’s fees and costs of suit.

 

13.                                 All
parties signatory hereto represent and warrant that they have executed this
Agreement of their own free will and volition, and that they were not under any
duress or coercion to do so.

 

3

 

14.               All signatories hereto represent and warrant
that they have executed this Agreement with the advice and benefit of counsel,
or that they have voluntarily declined same.

 

15.               This Agreement shall be governed in all
respects by the laws of the State of Florida.

 

IN WITNESS WHEREOF, the parties hereto have entered
into this Assignment, the day and year first above written.

 

	
  Witnesses

  	
  BOCA ARENA, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ Robert T. Mullin

  	
   

  
	
  [ILLEGIBLE]

  	
   

  	
  Robert T. Mullin, President

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jolie Mullin

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  Jolie Mullin

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
  STATE OF FLORIDA

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF PALM BEACH

  	
  )

  	
  ss:

  	
   

  
										

 

BEFORE ME, personally appeared Robert T.
Mullin, who after being first duly sworn, affixed his hand and seal to this instrument
which was acknowledged before me this 7th day of April, 1993, by Robert T.
Mullin, who is:

 

ý         (a) Personally known to me: or

 

o         (b) Who has produced:

 

(type
of identification)

 

and who (did/did-not) take an oath.

 

	
  [SEAL]

  	
  /s/ Nina B. Michael

  	
   

  
	
   

  	
  , Notary Public

  
	
  State of Florida

  
	
  Commission No. :

  	
   

  	
   

  
						

*  *  *  *  *  *  *  *

	
   

  	
  BOOMER’S SPORTS &
  RECREATION

  CENTER, INC.

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  By:

  	
  Percy J. Orthwein

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
   

  	
  PERCY J. ORTHWEIN

  	
   

  

 

 

4

 

	
   

  	
   

  	
  President

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph Ballarini

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
  STATE OF FLORIDA

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )      ss:

  	
   

  
	
  COUNTY OF PALM BEACH

  	
  )

  	
   

  	
   

  
								

 

BEFORE ME, personally appeared Percy J.
Orthwein, who after being first duly sworn, affixed his hand and seal to this instrument
which was acknowledged before me this 7th day of April, 1993,
by                                      ,
who is:

 

o         (a) Personally known to me: or

ý         (b) Who has produced: Drivers License

(type
of identification)

 

and
who (did/did not)
take an oath.

 

	
  [SEAL]

  	
  /s/ Nina B. Michael

  	
   

  
	
   

  	
  , Notary Public

  
	
  State of Florida

  
	
  Commission No. :

  	
   

  	
   

  
						

 

APPROVED BY: BOCA RATON
AIRPORT AUTHORITY

 

	
  By:

  	
  /s/ George W. Blank

  	
   

  	
   

  
	
   

  	
  Chairman

  	
   

  	
   

  
	
  Attest:

  	
  Robert E. Langerin

  	
   

  	
   

  
	
   

  	
  Secretary

  	
   

  	
   

  
	
  Dated:

  	
  April 7, 93

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF FLORIDA

  	
  )

  	
   

  
	
   

  	
  )      ss:

  	
   

  
	
  COUNTY OF PALM BEACH

  	
  )

  	
   

  	
   

  
							

 

BEFORE ME, personally appeared George W. Blank, who after being first
duly sworn, affixed his hand and seal to this instrument which was acknowledged
before me this 7th day of April, 1993,
by                               , who is:

 

ý                (a) Personally known to me; or

o                (b) Who has produced:

(type
of identification)

 

and who (did/did not)
take an oath.

 

	
   

  	
  Nina B. Michael

  	
   

  
	
   

  	
  , Notary Public

  
	
  State of Florida

  
	
  Commission No. :

  	
   

  	
   

  
	
   

  	
   

  	
  [SEAL]

  
	
   

  	
   

  
	
   

  	
   

  
						

 

5

 

FIFTH AMENDMENT TO LEASE AND OPERATING AGREEMENT

 

THIS FIFTH AMENDMENT TO LEASE AND, OPERATING AGREEMENT (the “Amendment”) is entered into this 22nd day of APRIL    , 1994
(the “Effective Date”), by and between BOCA RATON AIRPORT AUTHORITY (“Lessor”)
and BOOMER’S SPORTS AND RECREATION CENTER, INC., a Florida corporation doing
business as Boomer’s Family Recreation Center (“Lessee”).

 

BACKGROUND:

 

For the purposes of this Amendment, the
capitalized terms herein shall have the same meaning as the defined terms in
the Lease and Operating Agreement, unless otherwise defined herein.

 

Boca Arena, Inc., as lessee, entered into
that certain Lease and Operating Agreement with Lessor for the Premises, which
Lease was dated June 12, 1991. The Lease and operating Agreement was amended by
an Amendment, Second Amendment, Third Amendment and Fourth Amendment, and was
assigned by Boca Arena, Inc. to Lessee. The Lease and Operating Agreement, as
amended and assigned, is hereinafter referred to as the “Lease”.

 

Lessor and Lessee desire to amend the Lease
in order to (i) update certain provisions of the Lease, (ii) include additional land as part of the
Premises and (iii) revise the rent payment provision.

 

AGREEMENT:

 

NOW THEREFORE, in consideration of the
covenants, mutual promises and agreements set forth herein, and in
consideration of $10.00 and other valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Lessor and Lessee agree as
follows:

 

1.             Additional Land. The Premises is amended to include the land
described in the sketch attached hereto as Exhibit “A”, consisting of
approximately 2.7 acres, and hereinafter referred to as the “Additional Land”.
The exact legal description of the Additional Land has not been determined. At
such time as the exact legal description of the Additional Land is determined
by a survey, a copy of the survey and exact legal description will be attached
hereto, made a part hereof and marked with the appropriate exhibit letters.

 

 

2.             Payment. As additional consideration for the amendments to the Lease provided
herein, within thirty (30) days from the date hereof, Lessee shall pay to
Lessor $100,000.00, which will include reimbursement for all Lessor’s expenses
for survey, engineering, legal, administrative and professional services in
connection with the negotiation, drafting and completion of this Amendment.

 

3.             Rent. Article VI, A is amended in its
entirety to read as follows:

 

“Rent” shall be paid by Lessee to Lessor as
follows:

 

1.             Lease term through May 31, 1996. With respect to the Premises, inclusive of
the Additional Land, for that portion of the Lease term through May 31, 1996,
Rent in the amount of $20,500.00 per acre per annum shall be due and payable.

 

2.             Lease term from June 1, 1996 through the end
of the Lease. As of June 1,
1996, Rent will be increased for the Premises, inclusive of the Additional
Land, by the cumulative CPI-U from June 1991 to June 1996, provided that the
CPI-U increase from June 1994 to June 1996 will not exceed 125% per annum of
the average annual CPI-U increase from June 1991 to June 1994 (i.e, if the
CPI-U increased an average of 3% per year from 1991 to 1994, the increase for
1995 and 1996 would not exceed 3.75% per annum). The Rent, as adjusted by the
CPI-U increase in June 1996, will remain in effect for the ensuing five (5)
years, that is, there will be no annual increase as provided in the Lease until
June 1, 2001, when an adjustment for the CPI-U change for the previous five (5)
year-period shall be made and the annual CPI-U increase will resume unless
Lessee elects the percentage of sales method (the “Percentage of Sales
Method”), as hereinafter provided. On the first day of any quarter during the
period from June 1996 until June 2001, Lessee shall have the option, by giving
one month’s written notice to Lessor (including, for the prior twelve (12)
months’ gross revenues, a detailed summary statement in accordance with
subparagraph b. below which will be supplemented subsequently by an audited
statement in accordance with subparagraph c. below when any necessary
adjustment to the percentage will be made retroactive to the commencement of
the Percentage of Sales Method), to elect the Percentage of Sales Method for
Rent in lieu of acreage rent with an annual CPI-U increase, meaning that the
annual Rent then being paid on the Premises will be divided by the annual gross
revenues on the Premises for the previous twelve months and the percentage
derived will be applied to gross revenues thereafter as the rental rate. For
example, if gross annual rents in 1998 were $250,000 and gross revenues for the
prior year were $10,000,000, the Rent thereafter would be 2.5% of future gross
revenues.

 

2

 

In the event Lessee elects the Percentage of Sales
Method as provided herein, the following provisions shall apply:

 

a.             Minimum Rent plus applicable sales taxes
shall be paid on or before the tenth day of each month for the prior month.

 

b.             Lessee shall deliver to Lessor, concurrently
with the Rent payment due on the first day of each quarter, a detailed summary
statement, signed by an authorized representative of the Lessee, of gross
revenues for the immediately preceding quarter. In addition, Lessee shall
include a copy of the sales tax returns for that quarter. The summary
statements shall be in such form and contain such information as shall be
reasonably determined from time to time by the Lessor.

 

c.             Within 120 days of the end of each Lease year
or such other financial year as may be mutually agreed between the parties,
during the term of this Lease or any renewal hereof, Lessee shall cause to be
delivered to Lessor a schedule of gross revenues and Percentage Rent applicable
thereto, prepared in accordance with generally accepted accounting standards accompanied
by an opinion of an independent certified public accountant, which statement
shall set forth gross revenues from the previous year’s sales authorized under
this Lease and including a copy of all sales tax returns for that period. The
aforesaid statement shall be accompanied by the opinion of such independent
certified public accountant in accordance with the provisions of Statement of
Auditing Standards No. 14, Special Reports, as promulgated by the AICPA, in
substantially the following form:

 

“We
have examined the statement of gross revenues of Boomer’s Sports and Recreation
center, Inc. at its operations at Boca Raton Airport, for the year ended
            , 19   .
Our examination was made in accordance with generally accepted auditing standards
and, accordingly, included such tests of the accounting records and such other
auditing procedures as we consider necessary in the circumstances. In our
opinion, the statement of gross revenues presents fairly the gross revenues of
Boomer’s Sports and Recreation Center, Inc. for the year ended
            ,
19       on the basis specified in this Lease and
Operating Agreement.”

 

d.             If any quarterly or annual statement or
schedule discloses that additional sums are due Lessor, such additional sums
shall be paid by Lessee to Lessor in the next month’s Rent payment. If any such
statement or schedule discloses that excess sums were paid by Lessee to Lessor,
then such excess sums shall be offset against and deducted from the next
month’s Rent payment to be paid by Lessee to Lessor.

 

3

 

e.             In the event that any inspection or audit
made by or on behalf of Lessor discloses any discrepancy in any statement or
statements of gross revenues of the Lessee and/or in the amount of any sums of
money owed by the Lessee to Lessor pursuant to this Lease, Lessee shall
forthwith pay the sum of money owed to Lessor plus a service charge of 2% per
month of said sum for each month from the date said sum should have been paid
to Lessor, to the date payment is made to Lessor. Further, in the event any of
the aforesaid audits or inspections disclose a single cumulative discrepancy in
excess of 5% of the amount previously paid by Lessee to Lessor on account of
any annual period during the audit period in question, Lessee shall forthwith
pay to Lessor the cost of the audit and /or inspection. The cost of the audit
and/or inspection shall include all direct and indirect salary costs of Lessor,
any reasonable charges made by any consultant of Lessor, materials, supplies
and administrative overhead as shall be determined by Lessor from time to time
during the term of this Lease or any renewal hereof.

 

f.              Lessee will maintain in accordance with
generally accepted accounting principles and keep for a period of 5 years and
for such additional reasonable period as the Lessor may in writing request,
records and books of account and such other records as the Lessor may
reasonably request (to the extent such books and records are necessary to
comply with the other provisions of the Lease and this Amendment) recording all
transactions for the conduct of the business provided for herein, all of which
records and books of account shall be made available at the Boca Raton Airport
or in such other location as may be approved or requested in writing by the
Lessor.

 

3.             Minimum Rent. Upon Lessee’s election of the Percentage of
Sales Method for establishing Rent, the minimum Rent for the first year will be
the Rent in effect on the date of the election. Beginning with the second year
after the election, Rent for any one (1) year shall not be less than the
greater of (i) the minimum Rent for the immediately preceding Lease year, or
(ii) the average annual Rent for the immediately preceding three (3) year
period under the Lease.

 

4.             Free Rent. Notwithstanding any other provision set forth herein to the contrary,
with respect to the Additional Land, no Rent, shall be due and payable for a
one (1) year period, commencing from the Effective Date hereof.

 

4.             Federal Aviation Administration Approval. This Amendment is conditioned upon the
acknowledgement of no objection to the Amendment by the Federal Aviation
Administration (“FAA”), an agency of the United States government, and approval
by the appropriate agency of the State of Florida. Said acknowledgements and
approvals are to be in writing by an authorized representative of

 

4

 

said agencies. The parties
agree to use their best efforts to secure such approvals. If such acknowledgements
and approvals are not obtained within ninety (90) days from the Effective Date
hereof, either party may cancel this Amendment without further liability to
either party, in which event the payment made in accordance with Section 2 of
this Amendment shall be returned to Lessee.

 

5.             Use of Additional Land. The use of the Additional Land shall be for
enlargement of Lessee’s present facilities (under construction) and such other
family recreational purposes and facilities and improvements related thereto
which have previously been approved by Lessor, and shall be consistent with the
use of the Premises. No other use of the Additional Land shall be permitted
without the prior written approval of the Lessor.

 

All improvements made to the Additional Land
shall be of permanent construction affixed to the real estate and shall meet or
exceed Lessor specifications, local, county, state or federal codes, and FAA
requirements. All improvements of Lessee shall be solely at Lessee’s cost and
expense and shall be performed in a good workmanlike manner in accordance with
sound construction practices. Lessee shall keep the Premises, inclusive of
Additional Land, and any improvements free and clear of all liens for labor and
material and shall hold Lessor harmless from any liability in respect to
Lessee’s work. Lessee shall pay all impact and other governmental fees and
charges.

 

Lessee shall submit to Lessor detailed plans
and specifications for any and all proposed leasehold improvements. Lessor
agrees that it shall either approve the plans and specifications as submitted,
or transmit proposed revisions to Lessee, within sixty (60) calendar days of
receipt of the plans and specifications from Lessee.

 

6.             Access Easement. The Additional Land is not contiguous to Airport
Road. During the period of construction (the “Construction Period”) of
improvements on the Additional Land by Lessee, Lessor does hereby grant to
Lessee the right to install a temporary vehicular and pedestrian access
easement where designated by Lessor over a portion of the property from Airport
Road to the Additional Land. During the Construction Period, all construction
vehicles and personnel shall have access over the easement. At Lessor’s
request, upon completion of construction, Lessee shall remove the temporary
access and restore the property as nearly as possible to its original
condition.

 

Subsequent to the Construction Period and at
such time as the adjacent property is developed, Lessor shall grant to Lessee a
permanent vehicular and pedestrian access easement from Airport Road to the
Additional Land, the location of which shall be determined by Lessor in
consultation with Lessee.

 

5

 

7.             Security Wall. If required by Lessor subsequent to review of
the final plans of the proposed improvements for the Additional Land,
concurrent with the construction of improvements on the Additional Land, Lessee
shall construct, at Lessee’s sole cost and expense, an eight foot (8’) high
concrete security wall along the eastern boundary of the Additional Land in
accordance with plans, specifications and shop drawings approved by Lessor.

 

8.             Cooperation. The Lessor and Lessee agree that the ultimate development of the
nonaeronautical property adjacent to the Premises should serve the best
interests of the Lessor as well as its tenants. In that regard and without
intending to limit the discretion of the Lessor, the Lessor and Lessee agree to
consult with one another and consider their respective opinions concerning any
projects proposed for any of that property in the future.

 

9.             Amendment to Article VI,B,3 of the Lease. The second sentence of Article VI,B,3 is
amended to read as follows: “The Lessor may use these user fees for Airport
purposes as the City may agree or contribute all or part thereof to the City in
order to defray City costs of providing services to the Airport premises to the
extent allowed by the FAA.”

 

10.           General Provisions.

 

A.            Lessee will provide and maintain landscaping
and irrigation between the Premises which fronts on Airport Road and the
pavement of Airport Road (except the bottom of the detention and drainage
system).

 

B.            The personal guarantees of completion of the
principals of the Lessee will be extended to any new construction on the Premises,
inclusive of the Additional Land.

 

C.            Lessee does waive any objection to noise,
danger and air pollution caused by aviation operations.

 

D.            Lessee shall provide the Lessor with copies
of final as-built plans of all improvements constructed on the Premises,
including construction in progress on the date hereof.

 

E.             Lessor reserves an easement for the right of
ingress and egress through the gates of the Premises, including the Additional
Land, for emergency and light-weight maintenance vehicles.

 

F.             All development plans for the Additional Land
will be incorporated in amendments to the Boca Raton Airport Layout Plan which
will be approved by the FAA and which are subject to a successful FAA airspace
study.

 

6

 

G.            The following provisions of the Lease are not
applicable with respect to the Additional Land:

 

Article
III, A

Article
V, A, 1, 2, 3, 5

Article
XVIII, P

 

H.            Article XVIII, K of the Lease regarding
“Notice” is amended in its entirety to read as follows:

 

Any notice, request, demand, instruction or other communication to be
given to either party shall be in writing and shall be sent by registered or
certified mail, return receipt requested, or by express overnight courier, as
follows:

 

	
  If to lessor:

  	
   

  	
  Boca Raton Airport
  Authority

  3700 Airport Road, Suite 204

  Boca Raton, FL 33431-6403

  
	
   

  	
   

  	
   

  
	
  with copy to:

  	
   

  	
  C. William Berger, Esq.

  Interstate Plaza
  Building, Suite 412

  1499 West Palmetto Park Road

  Boca Raton, FL 33486

  
	
   

  	
   

  	
   

  
	
  If to Lessee:

  	
   

  	
  Mr. Joseph D. Horsfall

  Boomer’s Sports and
  Recreation Center, Inc.

  50 Lock Road

  Deerfield Beach, FL 33442

  
	
   

  	
   

  	
   

  
	
  with copy to:

  	
   

  	
  James J. Wheeler, Esq.

  Broad and Cassel

  7777 Glades Road, Suite 300

  Boca Raton, FL 33434

  

 

Notice
shall be deemed given if forwarded by certified mail through the facilities of
the United States Postal Office on the day following the date that the notice
in question is deposited in the facilities of the U.S. Postal Service. If
notice is forwarded by express overnight courier, it shall be deemed given on
the day following the date that the notice in question is deposited in the
facilities of an express overnight courier.

 

I.              Article XVIII, Q is amended in its entirety
to read as follows:

 

In the event that the Premises or the Additional Land shall become
available for purchase by a non-governmental person, firm or corporation, then
Lessee shall have the right of first refusal under the same terms and
conditions of any submitted offer to purchase.

 

7

 

J.             Except as modified and amended herein, the
terms and conditions set forth in the Lease remain the same and in full force
and effect.

 

K.            Lessor and Lessee agree to execute a
memorandum of this Amendment which memorandum shall be recorded in the Public
Records of Palm Beach County, Florida.

 

L.             The terms of the Lease as modified and
amended herein constitute the full and complete agreement of Lessor and Lessee,
and any amendments, alterations or changes to the Lease shall be valid only if
in writing and executed by Lessor and Lessee.

 

	
  ATTEST:

  	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BOCA RATON AIRPORT AUTHORITY

  
	
   

  	
   

  	
   

  
	
   /s/ William
  F. Mitchell

  	
   

  	
   

  	
  By:

  	
  /s/ George W. Blank

  	
   

  
	
  Name:

  	
  William F. Mitchell

  	
   

  	
   

  	
  Name:

  	
  George W. Blank

  	
   

  
	
  Title:

  	
  Sec

  	
   

  	
   

  	
  Title:

  	
  CHAIRMAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
  LESSEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BOOMER’S SPORTS AND RECREATION

  CENTER, INC., a Florida corporation doing business as Boomer’s Family
  Recreation Center

  
	
   

  	
   

  	
   

  
	
  /s/ Joseph D. Horsfall

  	
   

  	
   

  	
  By:

  	
  /s/ Percy J Orthwein, II

  	
   

  
	
  Name:

  	
  Joseph D. Horsfall

  	
   

  	
   

  	
  Name:

  	
  Percy J Orthwein, II

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Title: 

  	
  PRESIDENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Joinder As to Paragraph 10, B:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ James B. Orthwein, Jr

  	
   

  
	
   

  	
   

  	
  James B. Orthwein, Jr

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Percy J Orthwein, II

  	
   

  
	
   

  	
   

  	
  Percy J. Orthwein, II

  
														

 

8

 

DESCRIPTION.

PARCEL A.

 

A
portion of Section 13, Township 47 South, Range 42 East, Palm Beach County,
Florida; being more particularly described as follows: COMMENCING at the Point
of Intersection of a line parallel with and 300.00 feet Southeast of, as
measured at right angles to, the Southeast right-of-way line of the Seaboard
Airline Railroad with the West line of Section 7, Township 47 South, Range 43
East; said point bears North 00o 50’ 39”
West a distance of 2171.45 feet from the Southwest corner of said Section 7,
said point being further described as the Point of Intersection of the
Southeasterly limited access Right-of-Way line of I-95, as shown on State Road
Department Right-of-Way Map, (Job No. 93220-2411, Sheet 12a, dated 2/15/71, revised
last, 8/7/72) and the Southerly Right-of-Way line of Northwest 40th Street (as
shown on the aforementioned map) with the West line of said Section 7;

thence
South 44° 41’ 19” West, along a line parallel with and 300.00 feet
Southeasterly of, as measured at right angles to, the said Southeasterly
Right-of-Way line of the Seaboard Airline Railroad, a distance of 3376.00 feet;

thence
South 45o 18’ 41” East along the
Northeasterly Right-of-Way line of Airport Road, as shown on Road Plat Book 6,
pages 76 and 77 of the Public Records of Palm Beach County, Florida, a distance
of 100.00 feet;

thence
North 44° 41’ 19” East a distance of 76.85 feet;

thence
South 45° 18’ 41” East a distance of 60.00 feet;

thence
South 44° 41’ 19” West a distance of 76.85 feet to the Point of Curvature of a
circular curve concave to the southeast;

thence
southwesterly along the arc of said curve, having a radius of 5419.58 feet,
through a central angle of 14° 57’ 27” an arc distance of 1424.83 feet;

thence radially South 64° 20’ 47” East a distance of
199.54 feet;

thence South 45° 40’ 18” East a distance of 37.00 feet
to the POINT OF BEGINNING;

thence North 33° 35’ 59” East a distance of 292.09 feet;

thence South 45° 40’ 18” East a distance of 436.75 feet;

thence South 44  19’ 42”
West a distance of 286.98 feet;

thence North 45  40’
18” West a distance of 382.37 feet to the POINT OF BEGINNING.

Said land situates, lying and being in Palm Beach
County, Florida; contains 2.698 acres, more or less, and is subject to
easements, restrictions, reservations, covenants and rights-of-way of record.

 

1

 

SIXTH
AMENDMENT TO THE JUNE 12, 1991

LEASE
AND OPERATING AGREEMENT BETWEEN

THE
BOCA RATON AIRPORT AUTHORITY, LESSOR, AND

BOOMER’S
SPORTS AND RECREATION CENTER, INC., LESSEE

 

THIS AMENDMENT (the “Amendment”) to the Lease and Operating Agreement
(the “Lease”) is made and entered into this 20th day of SEPTEMBER,
1995 by and between the BOCA RATON AIRPORT AUTHORITY, a body politic and
corporate, having an office at 3700 Airport Road, Suite 204, Boca Raton,
Florida, 33431-6403 (the “Lessor”) and BOOMER’S SPORTS AND RECREATION CENTER,
INC., a Florida corporation, doing business as “Boomer’s”, having an office at
50 Lock Road, Deerfield Beach, Florida 33442 (the “Lessee”).

 

WITNESSETH:

 

WHEREAS, Boca Arena, Inc., as lessee, entered into that certain Lease
and Operating Agreement with the Lessor dated June 12, 1991 (the “Lease”). The
Lease was subsequently amended and assigned to the Lessee; and,

 

WHEREAS, the Lessor and Lessee desire to further modify and amend the
Lease, as amended, to agree to the terms of abatement of the rent for a portion
of the premises until certain conditions are satisfied among other things.

 

NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the Lessor and Lessee agree to further amend the Lease, as
amended, as follows:

 

1.                                       Abatement
of Rent.

 

a.                                       Payments.
 Article VI(A)(1) of the Lease, as
amended, is modified to provide that the base rent for the Additional Land
shall commence on May 1, 1996.

 

2.                                       Storm
Water Pollution Prevention System.  Lessee
agrees to participate with the Lessor and all other lessees of real property at
the Boca Raton Airport in the Boca Raton Airport Storm Water Pollution
Prevention Program and to immediately take action to eliminate the source of
any ground water or storm water pollution originating on the property leased to
the Lessee under this Lease.

 

3.                                       Ratification.
 All terms and conditions of the Lease,
as amended, including the five (5) prior amendments, except as modified by this
Sixth Amendment, are hereby ratified and confirmed, and shall remain in full
force and effect.

 

Signatures on following page

 

 

IN
WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND HEREBY, the parties hereto
have caused their official seals to be affixed by the hands of their proper
officers on the day and year first above written.

 

	
  ATTEST:

  	
   

  	
  “LESSOR”

  
	
   

  	
   

  	
   

  
	
  /s/ Jack Davenport

  	
   

  	
   

  	
  BOCA RATON AIRPORT AUTHORITY,

  
	
  Secretary

  

  [Seal]

  	
   

  	
  a
  body politic and corporate created under

  Chapter 82-259, Laws of the State of Florida

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Frank Kneiser

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Print Name/Title:

  	
  Frank Kneiser, Chairman

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “LESSEE”

  
	
   

  	
   

  	
   

  
	
  /s/ Joseph D. Horsfall

  	
   

  	
   

  	
  BOOMER’S SPORTS AND RECREATION

  
	
  

  Secretary

  

  [Seal]

  	
   

  	
  CENTER, INC.

  a Florida corporation d/b/a
Boca Aviation

  
	
   

  	
   

  	
  By:

  	
  /s/ Joseph D. Horsfall

  
	
   

  	
   

  	
  Print Name/Title:

  	
  Joseph D. Horsfall

  
	
   

  	
   

  	
   

  	
  Secretary - Treasurer

  
								

 

STATE
OF FLORIDA

COUNTY OF PALM BEACH

 

The foregoing instrument was acknowledged
before me this 20 day of September, 1995, by Frank Kneiser, as Chairman of BOCA
RATON AIRPORT AUTHORITY, a body politic and corporate, on behalf of the Authority.
He ý is personally known to me or
     has produced                     as
identification.

 

	
   

  	
  /s/ Nina B. Demeo

  	
   

  
	
   

  	
  Notary
  Public State of Florida at Large

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  	
   

  
	
   

  	
  Printed
  Name of Notary/Serial Number, if any

  My
  Commission Expires:

  

 

-Acknowledgements continued on following page-

 

2

 

STATE
OF FLORIDA

COUNTY OF PALM BEACH

 

The foregoing instrument was acknowledged before
me this 20 day of SEPTEMBER, 1995, by Joseph Horsfall, as
Secretary / Treasurer of BOOMER’S SPORTS AND RECREATION CENTER, INC., a
Florida corporation, on behalf of the Corporation. He ý
is personally known to me or     has produced
                           as
identification.

 

 

	
   

  	
  /s/ Nina B Demeo

  	
   

  
	
   

  	
  Notary
  Public State of Florida at Large

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  	
   

  
	
   

  	
  Printed
  Name of Notary/Serial Number, if any

  My Commission Expires:

  

 

3

 

SEVENTH AMENDMENT TO THE JUNE 12, 1991

LEASE AND OPERATING AGREEMENT BETWEEN

THE BOCA RATON AIRPORT AUTHORITY, LESSOR, AND

BOOMER’S SPORTS AND RECREATION CENTER, INC., LESSEE

 

THIS AMENDMENT (the “Amendment”) to the Lease
and Operating Agreement (the “Lease”) is made and entered into as of MARCH 1,
1997 by and between the BOCA RATON AIRPORT AUTHORITY, a body politic and
corporate, having an office at 3700 Airport Road, Suite 204, Boca Raton,
Florida, 33431-6403 (the “Lessor”) and BOOMER’S SPORTS AND RECREATION CENTER,
INC., a Florida corporation, doing business as “Boomer’s”, having an office at
50 Lock Road, Deerfield Beach, Florida 33442 (the “Lessee”).

 

WITNESSETH:

 

WHEREAS, Boca Arena, Inc., as lessee, entered
into that certain Lease and Operating Agreement with the Lessor dated June 12, 1991
(the “Lease”). The Lease was subsequently amended and assigned to the Lessee;
and,

 

WHEREAS, the Lessor and Lessee desire to
further modify and amend the Lease, as amended, to agree to the transfer of a
portion of the demised premises to First Flight Entertainment, Ltd., a Florida
limited partnership, with the consent of the Lessor.

 

NOW, THEREFORE, in consideration of the
mutual covenants and promises contained herein, the Lessor and Lessee agree to
further amend the Lease, as amended, as follows:

 

1.                                       Leased Premises. The Premises described in the Lease, as
amended, are hereby modified by the deletion of the land described in the Fifth
Amendment to the Lease dated April 22, 1994 as the “Additional Land”, and as
more particularly described on Exhibit “A” hereto (the “Boomer’s Parcel”).
Lessee hereby waives, releases and relinquishes all right, title and interest
in and to the Boomer’s Parcel.

 

2.                                       Ratification. All terms and conditions of the Lease, as amended, including the six (6)
prior amendments, except as modified by this Seventh Amendment, are hereby
ratified and confirmed, and shall remain in full force and effect.

 

Signatures on following page

 

 

IN WITNESS WHEREOF AND INTENDING TO BE
LEGALLY BOUND HEREBY, the parties hereto have caused their official seals to be
affixed by the hands of their proper officers on the day and year first above
written.

 

	
  ATTEST:

  	
   

  	
  “LESSOR”

  
	
   

  	
   

  	
   

  
	
  /s/ Mary E Wood

  	
   

  	
   

  	
  BOCA RATON AIRPORT AUTHORITY,

  
	
  Secretary

  

  [Seal]

  	
   

  	
  a
  body politic and corporate created under

  Chapter 82-259, Laws of the State of Florida

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Philip C. Modder

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Print Name/Title:

  	
  Philip C. Modder

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “LESSEE”

  
	
   

  	
   

  	
   

  
	
  /s/ Julie Laub

  	
   

  	
   

  	
  BOOMER’S SPORTS AND RECREATION

  
	
  Signature of Witness

  	
   

  	
  CENTER, INC.

  a Florida corporation

  
	
   

  	
   

  	
   

  
	
  Julie Laub

  	
   

  	
   

  	
  By:

  	
  /s/ Joseph D. Horsfall

  	
   

  
	
  Printed Name of Witness

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name/Title:

  	
  Joseph D. Horsfall

  	
   

  
	
  /s/ Jason R. Carros

  	
   

  	
   

  	
   

  	
  Vice President

  
	
  Signature of Witness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Jason R. Carros

  	
   

  	
   

  	
   

  
	
  STATE OF FLORIDA

  	
   

  	
   

  
	
  COUNTY OF PALM BEACH

  	
   

  	
   

  
											

 

The foregoing instrument was acknowledged
before me this 25th day of March, 1997 by Philip C. Modder, as Chairman of BOCA RATON
AIRPORT AUTHORITY, a body politic and corporate, on behalf of the Authority. He
ý is personally known to me or
     has produced                       
as identification.

 

	
   

  	
  /s/ Hazel A Gianatiempo

  	
   

  
	
   

  	
  Notary Public State of Florida at Large

  
	
   

  	
   

  
	
  [SEAL]

  	
  [SEAL]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name of Notary/Serial Number, if any

  
	
   

  	
  My Commission Expires:

  

 

-Acknowledgments
continued as following page-

 

2

 

STATE OF FLORIDA

COUNTY OF PALM BEACH

 

The foregoing instrument was acknowledged
before me this 25th day of March, 1997, by
Joseph Horsfall, as Vice President of BOOMER’S SPORTS AND RECREATION CENTER, INC.,
a Florida corporation, on behalf of the Corporation. He      is
personally known to me or      has produced                                              as
identification.

 

 

	
   

  	
  /s/ Julie I Laub

  	
   

  
	
   

  	
  Notary Public State of Florida at Large

  
	
   

  	
   

  
	
  [SEAL]

  	
  [SEAL]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name of Notary/Serial Number, if any

  
	
   

  	
  My Commission Expires:

  

 

3

 

 

1

 

EXHIBIT A

 

DESCRIPTION.

PARCEL A.

A portion of Section 13, Township 47 South,
Range 42 East, Palm Beach County, Florida; being more particularly described as
follows: COMMENCING at the Point of Intersection of a line parallel with and 300.00
feet Southeast of, as measured at right angles to, the Southeast right-of-way
line of the Seaboard Airline Railroad with the west line of Section 7, Township
47 South, Range 43 East; said point bears North 00° 50’ 39” West a
distance of 2171.45 feet from the Southwest corner of said Section 7, said
point being further described as the Point of Intersection of the Southeasterly
limited access Right-of-Way line of I-95, as shown on State Road Department Right-of-Way
Map, (Job No. 93220-2411, Sheet 12a, dated 2/15/71, revised last, 8/7/72) and
the Southerly Right-of-Way line of Northwest 40th Street (as shown on the
aforementioned map) with the West line of said Section 7;

thence South 44° 41’ 19” West, along a line
parallel with and 300.00 feet Southeasterly of, as measured at right angles to,
the said Southeasterly Right-of-Way line of the Seaboard Airline Railroad, a distance
of 3376.00 feet;

thence South 45° 18’ 41” East along the
Northeasterly Right-of-Way line of Airport Road, as shown on Road Plat Book 6,
pages 76 and 77 of the Public
Records of Palm Beach County, Florida, a distance of 100.00 feet;

thence North 44° 41’ 19” East a distance of
76.85 feet;

thence South 45° 18’ 41” East a distance of
60.00 feet;

thence South 44” 41’ 19” West a distance of
76.85 feet to the Point of Curvature of a circular curve concave to the
southeast;

thence southwesterly along the arc of said
curve, having a radius of 5419.58 feet, through a central angle of 14° 57’ 27”
an arc distance of 1414.83 feet;

thence radially South 64° 20’ 47” East a
distance of 199.54 feet;

thence South 45° 40’ 18” East a
distance of 37.00 feet to the POINT OF BEGINNING;

thence North 33° 35’ 59” East a distance of
292.09 feet;

thence South 45° 40’ 18” East a
distance of 436.75 feet;

thence South 44° 19’ 42” West a
distance of 286.98 feet;

thence North 45° 40’ 18” West a
distance of 382.37 feet to the POINT OF BEGINNING.

Said land situates, lying and being in Palm
Beach County, Florida; contains 2.698 acres, more or less, and is subject to
easements, restrictions, reservations, covenants and rights-of-way of record.

 

 

NOTES:

1.               Bearings shown
hereon are based on a bearing of North 00° 50’ 39” West along the westerly line of Section 7-47-43.

2.               Lands shown hereon were
not abstracted for instruments of record by this office.

 

 

2

 

EIGHTH AMENDMENT TO THE JUNE 12, 1991

LEASE AND OPERATING AGREEMENT BETWEEN

THE BOCA RATON AIRPORT AUTHORITY, LESSOR, AND

BOOMER’S SPORTS AND RECREATION CENTER, INC. LESSEE

 

THIS AMENDMENT (the “Amendment”) to the Lease
and Operating Agreement (the “Lease”) is made and entered into as of APRIL 16, 1997 by and between the BOCA RATON AIRPORT AUTHORITY, a body politic and corporate,
having an office at 3700 Airport Road, Suite 204, Boca Raton, Florida, 33431-6403
(the “Lessor”) and BOOMER’S SPORTS AND
RECREATION CENTER, INC., a Florida corporation, doing business as
“Boomer’s”, having an office at 50 Lock Road, Deerfield Beach, Florida 33442
(the “Lessee”).

 

WITNESSETH:

 

WHEREAS, Boca Arena, Inc., as lessee, entered
into that certain Lease and Operating Agreement with the Lessor dated June 12,
1991 (the “Lease”). The Lease was subsequently amended and assigned to the
Lessee; and

 

WHEREAS, the Lessor and Lessee desire to
further modify and amend the Lease, as amended, to permit the sale and
consumption of alcoholic beverages within certain portions of the Premises.

 

NOW, THEREFORE, in consideration of the
mutual covenants and promises contained herein, the Lessor and Lessee agree to
further amend the Lease, as amended, as follows:

 

1.             ARTICLE III(B)(15).
Article III(B)(15) of the Lease, as added by the First Amendment to Lease and
Operating Agreement dated June 12, 1991, is hereby deleted in its entirety and
the following inserted in lieu thereof:

 

15.           Alcohol Beverages. Subject to compliance with the requirements
of federal, state and local law and the provisions of this Lease, the Lessee
shall be entitled to sell and permit the consumption of alcoholic beverages
within certain portions of the Premises, provided, however, the Lessee shall
construct and maintain within the Premises, either a free-standing restaurant
building or within a portion of the existing building, a restaurant, wherein
said restaurant has not more than Eight Thousand (8,000) square feet of service
area and is equipped to serve one hundred fifty (150) persons full course meals
at tables at one time, and deriving at least fifty-one percent (51%) of its
gross revenues from the sale of food and non-alcoholic beverages (the
“Restaurant Facility”), which area shall be defined on the plans and
specifications submitted to the Lessor for approval. Lessee covenants and
agrees that the sale and consumption of alcoholic beverages shall be expressly
limited to the Restaurant Facility, and alcoholic beverages shall not be
permitted to be transported from or consumed outside of the Restaurant
Facility.

 

2.             ACKNOWLEDGMENT BY LESSEE. The execution and delivery of this Eighth
Amendment by the Lessor shall not be construed as the consent to any plans, specifications
or restaurant concepts, or the further modification or alteration of the
existing improvements on the Premises, or the modification or amendment of the
Lease, all of which are subject to the consent of the Lessor. Lessee acknowledges

 

 

and
agrees that neither the execution of this Amendment nor the discussions
relating to a possible restaurant facility within the Premises by the Lessor
and the Lessee shall confer any right in or to a further amendment to the Lease
unless and until such time as such future amendment to the Lease, complete in
form and substance, is formally approved and executed by the Lessor at a duly
authorized meeting thereof.

 

2.            Ratification. All terms and
conditions of the Lease, as amended, including the seven (7) prior amendments,
except as modified by this Eighth Amendment, are hereby ratified and confirmed,
and shall remain in full force and effect.

 

IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND HEREBY, the parties hereto have caused their
official seals to be affixed by the hands of their proper officers on the day
and year first above written.

 

	
  ATTEST:

  	
   

  	
  “LESSOR”

  
	
   

  	
   

  	
   

  
	
  /s/ Mary E. Wood

  	
   

  	
   

  	
  BOCA RATON
  AIRPORT AUTHORITY,

  
	
  Secretary

  

  [Seal]

  	
   

  	
  a body politic and corporate created under

  Chapter [ILLEGIBLE], Laws of the State of Florida

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Print
  Name/Title:

  	
  CHAIRMAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “LESSEE”

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  BOOMER’S SPORTS
  AND RECREATION

  CENTER, INC.

  a Florida corporation

  
	
  Secretary

  
	
  [Seal]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Joseph D.
  Horsfall

  	
   

  
	
   

  	
   

  	
  Print
  Name/Title:

  	
  Joseph D.
  Horsfall

  Vice President

  	
   

  
																	

 

Acknowledgments
appear on following page.

 

 

STATE
OF FLORIDA

COUNTY
OF PALM BEACH

 

The foregoing instrument was acknowledged,
before me this 16th day of April, 1997 by Philip Modder, as Chairman of BOCA RATON AIRPORT
AUTHORITY, a body politic and corporate, on behalf of the Authority. He ý is personally known to me or o has produced                                           
as identification.

 

	
   

  	
  Nina B. Demeo

  	
   

  
	
   

  	
  Notary Public State of Florida at Large

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name of Notary/Serial Number, if any

  
	
   

  	
  My Commission Expires:

  

 

STATE OF FLORIDA

COUNTY OF PALM BEACH

 

The foregoing instrument was acknowledged
before me this 16th day of April, 1997, by Joseph Horsfall, as Vice President of BOOMER’S
SPORTS AND RECREATION CENTER, INC., a Florida corporation, on behalf of the Corporation.
He ý is personally known to me or o has produced                                                        
as identification.

 

	
   

  	
  Nina B. Demeo

  	
   

  
	
   

  	
  Notary Public State of Florida at Large

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name of Notary/Serial Number, if any

  
	
   

  	
  My Commission Expires:

  

 

2

 

NINTH AMENDMENT TO LEASE AND
OPERATING AGREEMENT

 

This NINTH AMENDMENT TO LEASE AND OPERATING
AGREEMENT (this “Ninth Amendment”) is dated as of September 4, 1998, and is
entered into by and between BOCA RATON AIRPORT AUTHORITY, a body politic and
corporate, (“Lessor”), and BOOMER’S SPORTS AND RECREATION CENTER, INC., a
Florida corporation, doing business as “Boomer’s”, successor in interest to
Boca Arena, Inc. (“Lessee”).

 

R  E 
C  I  T 
A  L  S

 

A.            Lessor and Lessee entered into that certain
Lease and Operating Agreement dated June 12, 1991, (“Lease”), as amended by
that certain First Amendment to Lease and Operating Agreement entered into on
or about April 20, 1992, as further amended by that certain Second Amendment to
Lease and Operating Agreement entered into December 9, 1992, as further amended
by that certain Third Amendment to Lease and Operating Agreement entered into
March 17, 1993, as further amended by that certain Fourth Amendment to Lease
and Operating Agreement entered into April 21, 1993, as further amended by that
certain Fifth Amendment to Lease and Operating Agreement entered into April 22,
1994, as further amended by that certain Sixth Amendment to Lease and Operating
Agreement entered into September 20, 1995, as further amended by that certain
Seventh Amendment to Lease and Operating Agreement entered into March 1, 1997,
as further amended by that certain Eighth Amendment to Lease and Operating
Agreement entered into April 16, 1997, (as so amended, the “Original Lease”)
for the lease of certain real property located in the City of Boca Raton,
County of Palm Beach, State of Florida, and more particularly described
particularly in Exhibit “A” attached hereto and made a part hereof (the
“Demised Premises”). The Original Lease as amended by this Ninth Amendment
shall be referred to hereinafter as the “Lease.”

 

B.            Lessee desires to set forth and/or clarify
its right to enter into financing arrangements and, in connection therewith, to
secure all obligations, indebtedness and liabilities under such financing
arrangements by one or more mortgages or other instruments (as the same may be
amended, a “Leasehold Mortgage”) secured by Lessee’s interest in the Lease, any
sublease(s) thereunder, and a leasehold interest in the Demised Premises
(collectively, “Lessee’s Interest”).

 

C.            Lessee desires to obtain Lessor’s consent to
Lessee’s assignment of the Lease, all subleases thereunder, if any, and
Lessee’s leasehold interest in the Demised Premises to Festival Fun Parks, LLC,
a Delaware limited liability company (“FFP”).

 

In consideration of the foregoing recitals,
the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Lessor and Lessee hereby agree as follows:

 

A  G  R  E  E  M  E  N  T

 

1. DEFINITIONS; EFFECT ON LEASE. All
capitalized terms used in this Ninth Amendment which are not defined herein
shall have the same meanings set forth in the Original Lease.

 

 

2.             RIGHT TO ENCUMBER. Lessee may, without
Lessor’s consent, mortgage or grant no more than one (1) security interest
in Lessee’s Interest at any one time to a leasehold mortgagee (a “Leasehold
Mortgagee”) (which Leasehold Mortgagee shall initially be Fleet Capital
Corporation) and assign the Lease and any sublease(s) thereunder, as collateral
security under a Leasehold Mortgage, upon the condition that all rights
acquired under such Leasehold Mortgage shall be subject to each and all of the
covenants, conditions and restrictions set forth in the Lease, and to all
rights and interests of Lessor therein, none of which covenants, conditions or restrictions
is or shall be waived by Lessor by reason of the right given to Lessee
hereunder to mortgage or grant security interests in Lessee’s Interest, except
as otherwise expressly provided herein. The Leasehold Mortgagee shall be an
institutional lender, which shall mean a savings bank, commercial bank, trust
company, credit union, insurance company, real estate investment trust or
pension fund, or an entity through which mortgage backed securities are issued,
and no other, which shall have assets in excess of One Hundred Million Dollars
($100,000,000.00). Notwithstanding anything to the contrary in the foregoing,
Fleet Capital Corporation shall be deemed an institutional lender under the
Lease. Lessee may only encumber Lessee’s Interest with additional security
interests following written approval from Lessor, such approval not to be
unreasonably delayed or withheld or conditioned.

 

3.             RIGHTS OF LEASEHOLD MORTGAGEE. Upon Lessee
and/or Lessee’s successors and assignees mortgaging or granting a security interest
in Lessee’s Interest, so long as such Leasehold Mortgage shall remain
unsatisfied of record or until written notice of satisfaction is given by the
holder to Lessee, the following provisions shall apply:

 

A.            There shall be no cancellation, surrender, or
acceptance of surrender of the Lease or material amendment or modification of
the Lease which materially adversely affects the Leasehold Mortgagee’s security
interest in Lessee’s Interest, by joint action of Lessor and Lessee or by
Lessee alone, without in each case the prior written consent of the Leasehold
Mortgagee or its appointed agent(s); provided that the Leasehold Mortgagee’s
consent pursuant to this Section 3(A) shall not be unreasonably withheld,
conditioned or delayed; provided further that if the Leasehold Mortgagee has
not responded in writing to a written request for consent pursuant to this
Section 3(A) within thirty (30) days of receipt of such request, the Leasehold
Mortgagee shall be deemed to have consented to such request and each of Lessee
and Lessor shall proceed as if a written consent from the Leasehold Mortgagee
had been received. No merger shall result from the acquisition by, or
devolution upon, any one entity of the fee and the leasehold estates in the
Demised Premises.

 

B.            Lessor shall, upon giving Lessee notice or
other communication, whether of default or any other matter, simultaneously
give a copy of such notice to the Leasehold Mortgagee or its appointed agent(s)
that has notified Lessor in writing of its security interest in Lessee’s
Interest and its notice address, and no such notice or other communication to
Lessee shall be deemed given unless a copy is so provided to the Leasehold
Mortgagee or its appointed agent(s) in the manner provided in the Lease for the
giving of notices.

 

C.            In the event of any default by Lessee under
the Lease, the Leasehold Mortgagee shall have the same period, after receipt of
written notice upon such Lessee’s default, to remedy or cause to be remedied
the default complained of as Lessee has under the Lease for such default, plus
an additional thirty (30) days (ten (10) days in the case of a monetary
default), and Lessor shall accept such

 

2

 

performance
by or at the instigation of such Leasehold Mortgagee as if same has
been done by Lessee. Each notice of default given by Lessor will state the
amounts of whatever rent and other payments herein provided for are then
claimed to be in default.

 

D.            Anything herein contained notwithstanding, if
any non-monetary default shall occur which, pursuant to any provision of the
Lease, entitles Lessor to terminate the Lease, and if before the expiration of
the time period described in Subparagraph 3(C), the Lender shall have commenced
or caused to be commenced the work of curing such default and is prosecuting or
causing the prosecution of same to completion with reasonable diligence, then
in such event Lessor shall not be entitled to terminate the Lease and any
notice of termination theretofore given shall be void and of no effect.

 

E.             No default by Lessee will be deemed to exist
as long as the Leasehold Mortgagee, in good faith, has commenced promptly
either (i) to diligently and with commercially reasonable efforts cure the
default and to prosecute the same to completion, or (ii) if possession of the
Demised Premises is required in order to cure the default, to institute
foreclosure proceedings and obtain possession directly or through a receiver,
and to prosecute such proceedings with diligence and continuity, and in any
event as promptly as practicable, and, upon obtaining such possession,
commences promptly to cure the default and to prosecute the same to completion
with diligence and continuity; and that during the period in which such action
is being taken (and any foreclosure proceedings are pending), all of the other
obligations of Lessee under the Lease, to the extent they are susceptible of
being performed by the Leasehold Mortgagee are being duly performed. However,
at any time after the delivery of the aforementioned agreement, the Leasehold
Mortgagee may notify Lessor, in writing, that it has relinquished possession of
the Demised Premises or that it will not institute foreclosure proceedings or,
if such proceedings have been commenced, that it has discontinued them, and in
such event, the Leasehold Mortgagee will have no further liability under such
agreement from and after the date which is thirty (30) days after it delivers
such notice to Lessor (except for any obligations accruing prior to thirty (30)
days after the date it delivers such notice), and, thereupon, Lessor will have
the unrestricted right to terminate the Lease and to take any other action it
deems appropriate by reason of any default by Lessee, and upon any such
termination the provisions of the Lease will apply.

 

F.             Lessor, within ten (10) days after a request
in writing by Lessee or the Leasehold Mortgagee, shall furnish a written
statement, duly acknowledged, that the Lease is in full force and effect and
that to Lessor’s actual knowledge there are no defaults thereunder by Lessee,
or if there are any defaults, such statement shall specify the defaults that to
Lessor’s actual knowledge Lessor claims exist. As of this date, Lessor has no
notice of any defaults under the Lease by the Lessee.

 

G.            If Lessee fails to exercise any extension,
renewal or purchase option in the Lease, Lessor shall promptly send the
Leasehold Mortgagee written notice thereof, and the Leasehold Mortgagee, within
thirty (30) days after receipt of such notice, may exercise any such option on
behalf of Lessee,

 

H.            Subject to the Leasehold Mortgagee’s
complying with the conditions of this Ninth Amendment, Lessor hereby consents
to: (i) the foreclosure of a

 

3

 

Leasehold
Mortgage, (ii) any sale of Lessee’s interest in the Lease and the Demised
Premises in connection with a foreclosure, whether by judicial proceedings or
by virtue of any power of sale contained in the Leasehold Mortgage, (iii) any
conveyance of Lessee’s interest in the Lease and the Demised Premises from
Lessee to the Leasehold Mortgagee or its nominee or designee by virtue of or in
lieu of foreclosure or other appropriate proceedings, and (iv) if Leasehold
Mortgagee or its nominee or designee become the holder of Lessee’s interest in
the Lease and the Demised Premises, the conveyance of such interest by
Leasehold Mortgagee or its nominee or designee with the consent of Lessor to:
(x) another creditworthy operator, or (y) any other party in accordance with
the terms of the assignment provisions of the then lease (which shall be the
same as those contained in the present Lease, except for the transfers
permitted without consent pursuant to clauses (x) and (y) above, and except
that all obligations and liabilities of the Leasehold Mortgagee or its nominee
or designee under such lease arising from and after such assignment shall cease
and terminate upon such assignment).

 

I.              Any person or
entity who by purchase at a foreclosure sale and/or by transfer in lieu of
foreclosure acquires any right, title or interest in or to the Lease by
acceptance of a deed or other instrument of conveyance thereof, will
conclusively be deemed to have accepted such right, title or interest subject
to all of the terms, covenants and conditions of the Lease; it being the
specific intent of Lessee and Leasehold Mortgagee that the Leasehold Mortgage
encumbers only Lessee’s leasehold interest in the Demised Premises and that
except as specifically set forth in the Lease, the rights of the Lessor
pursuant to the Lease will not be affected by the terms of the Leasehold
Mortgage.

 

J.             The Leasehold
Mortgagee waives all right and option to retain and apply the proceeds of any
insurance or the proceeds of any condemnation award toward payment of the sum
secured by a Leasehold Mortgage to the extent such proceeds are required for
the demolition, repair or restoration of the Demised Premises in accordance
with the provisions of the Lease.

 

K.            The Leasehold
Mortgagee agrees to send the Lessor copies of all notices to the Lessee in
which Leasehold Mortgagee accelerates the obligation of the Lessee under the
terms and conditions of the Leasehold Mortgage; said copy to be sent to the
Lessor simultaneously with its being sent to the Lessee.

 

L.             The Leasehold
Mortgagee acknowledges that it has obtained no interest whatsoever in the
underlying fee as a result of the execution of the Leasehold Mortgage by the
Lessee.

 

4.             INTEREST
OF LEASEHOLD MORTGAGEE. No Leasehold Mortgage or any extension thereof made by
Lessee or by an approved subtenant, whether or not consented to by Lessor, will
extend to or affect the estate and interest of Lessor in and to the Demised
Premises or any part thereof. A true copy of the Leasehold Mortgage certified
by the Leasehold Mortgagee to be a true and complete copy, and a written notice
containing the name and post office address of the Leasehold Mortgagee, will be
promptly delivered to the Lessor.

 

5.             CONSENT
TO ASSIGNMENT OF LEASE. Notwithstanding anything to the contrary contained in
the Lease, Lessor hereby consents to the assignment of the Lease,

 

4

 

all
subleases thereunder, if any, and Lessee’s leasehold interest in the Demised
Premises to FFP, which assignment to FFP shall be effective as of the date of
set forth on that certain Assignment and Assumption of Lease executed by Lessee
and FFP, an executed copy of which shall be promptly delivered to Lessor by
Lessee.

 

6.             MODIFICATION;
ENTIRE AGREEMENT. This Ninth Amendment may not be modified or terminated
orally, and constitutes the entire agreement between the parties with respect
to the subject matter hereof.

 

7.             SUCCESSORS
AND ASSIGNS. This Ninth Amendment shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns (including, without limitation, FFP).

 

8.             CONSTRUCTION;
REAFFIRMATION. Except as expressly amended hereby, all of the terms and
conditions of the Original Lease shall remain unmodified and in full force and
effect. In the event of a conflict between the terms of the Original Lease and
the terms of this Ninth Amendment, the terms of this Ninth Amendment shall
govern and prevail. The Original Lease, as amended by this Ninth Amendment, is
hereby reaffirmed.

 

9.             COUNTERPARTS.
This Ninth Amendment may be executed in multiple counterparts, each of which
shall be deemed an original, but all of which, together, shall constitute one
and the same instrument, binding on the parties hereto. The signature of either
party hereto to any counterpart hereof shall be deemed a signature to, and may
be appended to, any other counterpart hereof. Facsimile signatures shall be
fully binding and effective for all purposes as if they were original signatures.

 

IN WITNESS WHEREOF, Lessor and Lessee have
executed this Ninth Amendment as of the day and year first written above.

 

	
  LESSEE:

  	
   

  	 

	
   

  	
  Executed in the
  presence of:

  	 

	
   

  	
   

  	 

	
  BOOMER’S SPORTS
  AND

  	
   

  	
   

  	
   

  	 

	
  RECREATION
  CENTER, INC.,

  	
   

  	 

	
  a Florida
  corporation

  	
  By:

  	
  /s/ Trudy A.
  Nadreau

  	
   

  	 

	
   

  	
   

  	
  Name:

  	
  Trudy A. Nadreau

  	
   

  	 

	
   

  	
   

  	 

	
  By:

  	
  /s/ Joseph D.
  Horsfall

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
  Joseph D.
  Horsfall

  	
   

  	
  By:

  	
  /s/ Kerry A.
  Josephson

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  	
   

  	
  Name:

  	
  Kerry A.
  Josephson

  	
   

  	 

													

 

5

 

	
   

  	
   

  
	
  LESSOR:

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  BOCA RATON AIRPORT

  	
   

  
	
  AUTHORITY,

  	
  By:

  	
  /s/ William Day III

  	
   

  
	
  a body politic and corporate created

  	
   

  	
  Name:

  	
  William Day III

  	
   

  
	
  under

  	
   

  
	
  Chapter 82-259, Laws of the State of 

  	
   

  
	
  Florida

  	
  By:

  	
  /s/ Don Currie

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Don Currie

  	
   

  
	
  By:

  	
  /s/ Charles L. Sieck

  	
   

  	
   

  
	
   

  	
  Name

  	
  CHARLES L. SIECK

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CHAIRMAN

  	
   

  	
   

  

 

6

 

EXHIBIT A

 

DESCRIPTION
OF DEMISED PREMISES

 

7

 

EXHIBIT “A”

 

LEGAL DESCRIPTION:

 

COMMENCE at the point of intersection of the,
Southeasterly Limited Access right-of-way line of I-85, as shown on State Road
Department Right-of-Way Map, (Job No. 93220-2411, Sheet 12a, dated 2/15/71,
revised last 8/7/72) and the West line of Section 7, Township 47 South, Range
43 East; thence S 44°41’18” W. along said Southeasterly
Limited Access right-of-way line, being 300.00 feet Southeast of and parallel
with the Southeast right-of-way line of the Seaboard Airline Railroad, 3376.00.
feet; thence S 45°18’ 41” E, along the Northeasterly
right-of-way line of Airport Road, as shown on Road Plat Book 6, Pages 76 and
77, of the Public Records of Palm Beach County, Florida, 100.00 feet; thence N
44° 41’ 19” E, 76.85 feet; thence S 45° 18’41’ E, 60.00 feet; thence S 44°41’ 19” W. 76.85 feet to the Point of
Curvature of a curve concave to the Southeast; thence Southwesterly along the
arc of said curve, having a radius of 5,419.58 feet, a central angle of 14°  57’ 27” an arc distance of 1414.82 feet to the
POINT OF BEGINNING: thence S 64° 20’47” E, 189.64 feet; thence S 45° 40’ 18” E, 418.37 feet; thence S 44°  19’ 42” W, 471.12 feet; thence S 89° 19’ 42” W, 130.10 feet; thence S 44° 18’ 42” W, 557.32 feet; thence N 37° 08’ 27” W, 23,48 feet to the Point of
Curvature of a curve concave to the Northeast; thence Northwesterly, along the
arc of said curve, having a radius of 132,67 feet, a central angle of 53° 66’ 43”, an arc distance of 124.91 feet;
thence N 73°11’ 44” W, 25.00 feet to a point of
Intersection with the Easterly right-of-way line of the road shown on Road Plat
Book 6, Pages 76 and 77 of the Public Records of Palm Beach County, Florida;
said point being on the arc of a curve concave to the East; thence Northerly
along the arc of said curve, which radius bears N 73°11’ 44” W and having a radius of 3947.28
feet, a central angle, of 06° 09’17”, an arc distance of 424.02 feet to a
Point of Compound curvature with a curve concave to the East; thence Northerly
along the are of said curve having a radius of 5419.59 feet; a central angle of
06° 46’ 19”, an arc distance of 640.56 feet to
the POINT OF BEGINNING; the last two courses being coincident with said
Easterly road right-of-way line.

 

Said lands situate, lying and being in the City of Boca Raton, Palm
Beach County, Florida; containing 9.83 acres.

 

 

ASSIGNMENT OF LEASE AND OPERATING AGREEMENT

 

THIS
ASSIGNMENT OF LEASE AND OPERATING AGREEMENT is made as of
MARCH 1, 1997 (the “Effective Date”) by and between BOOMER’S SPORTS AND
RECREATION CENTER, INC., a Florida corporation (the “Assignor”) and FIRST FLIGHT
ENTERTAINMENT, LTD., a Florida limited partnership (the “Assignee”).

 

RECITALS

 

A             Assignor, as tenant by assignment, entered into a Lease
and Operating Agreement with the BOCA RATON AIRPORT AUTHORITY (the “Authority”),
as landlord, dated June 12, 1991, as amended from time to time (the “Boomer’s
Lease”) for certain lands described therein, which lands include a certain
parcel added by the Fifth Amendment to the Boomer’s Lease dated April 22, 1994,
as more particularly described on Exhibit “A” hereto (the “Boomer’s Parcel”).

 

B.            Assignee, as tenant by assignment, has executed and
delivered to the Authority, as landlord, a Restated Lease and Operating
Agreement effective as of March 1, 1997 (the “FFE Lease”) for certain lands
more particularly described on Exhibit “A” to the FFE Lease (the “FFE Parcel”).

 

C.            Assignee desires to add the Boomer’s Parcel to the FFE
Parcel, and Assignor has agreed to the assignment and transfer of its rights to
the Boomer’s Parcel to the Assignee.

 

NOW, THEREFORE, in consideration of the
mutual promises and covenants contained herein, and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
the Assignor and Assignee agree as follows:

 

1.             RECITALS. The foregoing Recitals are true and
correct, and are hereby incorporated herein.

 

2.             ASSIGNMENT. Assignor hereby assigns, transfers
and conveys to the Assignee all of Assignor’s right, title and interest in and
to the Boomer’s Parcel. Assignee hereby accepts the Boomer’s Parcel, and
acknowledges and agrees that the Boomer’s Parcel is added to and shall become a
part of the FFE Parcel, subject to all of the terms, conditions, covenants,
easements and restrictions of the FFE Lease.

 

1

 

3.             TERMINATION OF BOOMER’S INTEREST IN THE BOOMER’S PARCEL.
Effective as of March 1, 1997, and the completion of the
execution of all agreements, documents, and instruments to be executed and
delivered in connection with the FEE Lease transaction, the Boomer’s Lease
shall be deemed terminated and canceled as of March 1, 1997 solely as to the
Boomer’s Parcel.

 

4.             CONSENT OF AUTHORITY. The Authority is
executing this Assignment to acknowledge its consent to the assignment of the Boomer’s
Parcel to the Assignee and the termination of the Boomer’s Lease solely as to
the Boomer’s Parcel. The Consent of the Authority is expressly conditioned upon
the completion of the transactions contemplated to complete the FEE Lease,
including, without limitation, the execution and delivery of all releases,
monies and documents as are required to be delivered and executed, and the
authorization of the acts contemplated herein and the other documents and
agreements at a duly noticed meeting of the Authority.

 

5.             ENTIRE AGREEMENT. This Agreement and the
Agreement to Convey Ground Lease Parcel dated even date herewith, including the
other documents referred to herein, contains the entire understanding of the
parties hereto in respect of its subject matter and supersedes all prior and
contemporaneous agreements and understandings, oral and written, between the
parties with respect to such subject matter.

 

6.             SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the Assignor, Assignee and the Authority and their
respective successors, heirs and assigns;.

 

7.             COUNTERPARTS. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original, but all
such counterparts together shall constitute but one and the same Agreement.

 

8.             RATIFICATION OF BOOMER’S LEASE. Except as
modified herein, the Boomer’s Lease is hereby ratified and confirmed in all
respects. Nothing contained herein shall be deemed to modify, extend or
otherwise alter the Boomer’s Lease.

 

Signatures appear on following page.

 

2

 

IN WITNESS WHEREOF, each of the parties
hereto has executed this Agreement, or has caused this Agreement to be executed
on its behalf by a representative duly authorized, all as of the Effective
Date.

 

	
  Signed, sealed and
  delivered in

  	
  “ASSIGNEE”

  	
   

  
	
  presence of:

  	
   

  	
   

  
	
   

  	
  FIRST FLIGHT
  ENTERTAINMENT,

  
	
   

  	
  LTD., a Florida limited
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FIRST FLIGHT

  
	
   

  	
   

  	
  ENTERTAINMENT, INC.,
  Florida

  
	
   

  	
   

  	
   

  	
  corporation, its sole general
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Robert A. Eiser

  	
   

  	
  By:

  	
  /s/ Morris G. Stoltz, III

  	
   

  
	
  Signature of Witness

  	
   

  	
   

  	
  Morris G. Stoltz, III,
  President

  
	
  Robert A. Eiser

  	
   

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Richard A.
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
  Signature of Witness

  	
   

  	
   

  
	
  Richard A. [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “ASSIGNOR”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOOMER’S SPORTS AND

  RECREATION CENTER, INC., a Florida

  corporation

  
	
   

  	
   

  	
   

  
	
  /s/ Julie Laub

  	
   

  	
  /s/ Joseph Horsfall

  	
   

  
	
  Signature of Witness

  	
  By: Joseph Horsfall, Vice President

  
	
  Julie Laub

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  
	
   

  	
   

  
	
  /s/ JASON R. CARROS

  	
   

  	
   

  
	
  Signature of Witness

  	
   

  
	
  JASON R. CARROS

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  
						

 

3

 

CONSENT

 

The undersigned hereby consents to the
foregoing Assignment as of the Effective Date.

 

 

	
  ATTEST:

  	
  AUTHORITY”

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Mary E. Wood

  	
   

  	
  BOCA RATON AIRPORT
  AUTHORITY,

  a body politic and
  corporate created under

  Chapter 82-259, Laws of the State of Florida

  
	
  Secretary

  
	
  [Seal]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip C. Modder

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name/Title:

  	
  PHILIP C. MODDER, CHAIRMAN

  	
   

  
	
   

  	
   

  
						

 

 

KACL\BOCA-AIR\1STFLIGH\FINAL\ASGBOOM.FFE

March 21, 1997

 

4

 

EXHIBIT A

 

 

1

 

Portion of Section 13, Township 47 South, Range 42 East, Palm Beach County,
Florida; being more particularly described as folio COMMENCING at the Point of
intersection of a line parallel with and 300.00 feet Southeast of, as measured
at right angles to, the Southeast right-of-way line of Seaboard Airline
Railroad with the West line of Section 7, Township 47 South, Range 43 East;
said point bears North 00° 50’ 39” West a distance of 2171.45 feet from the
Southwest corner of said Section 7, said point being further described as the
Point of Intersection of the Southeasterly limited access Right-of-Way line of
I-95, as shown on State Road Department Right-of-Way Map, (Job No. 93220-2411,
Sheet 12a, dated 2/15/71, revised last, 8/7/72) and the Southerly Right-of-Way
line of Northwest 40th Street (as shown on the aforementioned map) with the
West line of said Section 71;

thence South 44° 41’19” West, along a line parallel with the 300.00 feet
Southeasterly of, as measured at right angles to, the said Southeasterly
Right-of-Way line of the Seaboard Airline Railroad, a distance of 3376.00 feet;

thence South 45° 18’ 41” East along the Northeasterly Right-of-Way line of
Airport Road, as shown on Road Plat Book 6, pages 76 and 77 of the Public
Records of Palm Beach County, Florida, a distance of 100.00 feet;

thence North 44° 41’ 19” East a distance of 76.85 feet;

thence South 45° 18’ 41” East a distance of 60.00 feet;

thence South 44° 41’ 19” West a distance of 76.85 feet to the Point of
Curvature of a circular curve concave to the Southeast;

thence southwesterly along the arc of said curve, having a radius of
5419.58 feet, through a central angle of 14° 57’ 27” an arc distance of 1414.83
feet;

thence radially South 64° 20’ 47” East a distance of 199.54 feet;

thence South 45° 40’ 18” East a distance of 37.00 feet to the POINT Of
BEGINNING;

thence North 33° 35” 59” East a distance of 292.09 feet;

thence South 45° 40’ 18” East a distance of 436.75 feet;

thence South 44° 19’ 42” West a distance of 286.98 feet;

thence North 45° 40’ 18” West a distance of 382.37 feet to the POINT OF
BEGINNING.

Said land situates, lying and being in Palm Beach County, Florida;
contains 2.698 acres, more or less, and is subject to easements, restrictions,
reservations, covenants and rights-of-way of record.

 

NOTES:

Bearings shown hereon are based on a bearing of North
00° 50’ 39” [ILLEGIBLE] along the westerly line of Section 7-47-43.

Lands shown hereon were not abstracted for instruments
of record this office.

This is not a Survey. It is only a sketch meant for
Illustrative purposes.

 

2

 

	
   

  	
  “WILL-[ILLEGIBLE]-ATS”

  	
   

  	
   

  
	
   

  	
  for
  BROAD AND CASSEL

  	
   

  	
   

  
	
   

  	
  7777
  W.GLADES ROAD

  	
   

  	
   

  
	
   

  	
  BOCA
  RATON, FL 33434

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
  RECORDING
  REQUESTED BY

  	
   

  	
   

  
	
  AND WHEN
  RECORDED MAIL TO:

  	
   

  	
  Sep-10-1998 01:25pm 98–353541

  
	
  Paul,
  Hastings, Janofsky & Walker LLP

  	
   

  	
     ORB
  10630 Pg          37

  
	
  555 South
  Flower Street, 23rd Floor

  	
   

  	
  Con   3,000,000.00
  Doc 21,000.00

  
	
  Los Angeles, California 90071

  	
   

  	
   

  
	
  Attn: Rick S. Kirkbride, Esq.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MAIL ALL
  TAX STATEMENTS TO:

  	
   

  	
   

  
	
  Festival Fun
  Parks, LLC

  	
   

  	
   

  
	
  104 West
  Anapamu Street, Suite G

  	
   

  	
   

  
	
  Santa
  Barbara, CA 93101

  	
   

  	
   

  

 

SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

 

ASSIGNMENT AND ASSUMPTION OF LEASE

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (this “Assignment”)
is made and entered into as of the 2nd day of September, 1998 (the “Effective Date”), by and between BOOMER’S SPORTS AND
RECREATION CENTER, INC., a Florida corporation, doing business as “Boomer’s”,
successor in interest to Boca Arena, Inc. (“Assignor”),
and FESTIVAL FUN PARKS, LLC, a Delaware limited liability company (“Assignee”), with reference to the following facts:

 

A.            Assignor is the tenant under that certain
Lease and Operating Agreement dated June 12, 1991, entered into by and between
Assignor and BOCA RATON AIRPORT AUTHORITY, a body politic and corporate, as
landlord (“Landlord”), as amended by that certain
First Amendment to Lease and Operating Agreement entered into on or about April
20, 1992, which Lease and Operating Agreement was assigned by Boca Arena, Inc.
to Boca Sports, Inc., on or about April 22, 1992, which assignment to Boca
Sports, Inc. was later terminated, as further amended by that certain Second
Amendment to Lease and Operating Agreement entered into December 9, 1992, as
further amended by that certain Third Amendment to Lease and Operating
Agreement entered into March 17, 1993, which Lease and Operating Agreement was
assigned by Boca Arena, Inc., to Boomer’s Sports and Recreation Center, Inc. on
or about April 7, 1993, as further amended by that certain Fourth Amendment to
Lease and Operating Agreement entered into April 21, 1993, as further amended
by that certain Fifth Amendment to Lease and Operating Agreement entered into
April 22, 1994, as further amended by that certain Sixth Amendment to Lease and
Operating Agreement entered into September 20, 1995, as further amended by that
certain Seventh Amendment to Lease and Operating Agreement entered into March
1, 1997, as further amended by that certain Eighth Amendment to Lease and
Operating Agreement entered into April 16, 1997, as further amended by that
certain Ninth Amendment to Lease and Operating Agreement entered into by and
between Assignor and landlord as of the date but prior to the execution hereof
(as amended, the “Lease”), for the lease of certain
real property located in the City of Boca Raton, County of Palm Beach, State of
Florida, and more particularly described on Exhibit “A”
attached hereto (the “Property”).

 

 

B.            Assignor desires to assign to Assignee, as of
the Effective Date, all of its right, title and interest in, to and under the
Lease, and Assignee desires to receive from Assignor such assignment and to
assume each and all of the obligations of Assignee as tenant under the Lease to
be performed following the Effective Date.

 

NOW THEREFORE, in
consideration of the promises and conditions contained herein, the parties
hereto do hereby agree as follows:

 

1.             Assignment. Assignor hereby assigns
and transfers to Assignee all of its right, title and interest in, to and under
the Lease, effective as of the Effective Date.

 

2.             Assumption. Assignee hereby
assumes, effective as of the Effective Date, all obligations of Assignor as
Tenant under the Lease which first arise from and after the Effective Date and
agrees to be bound by and perform all of Tenant’s covenants, duties and
obligations which first arise thereunder from and after the Effective Date.
Notwithstanding the foregoing, Assignee shall have no obligation, liability or
responsibility for any liability, cost, expense or obligation of Assignor under
the Lease arising prior to the Effective Date, or attributable to such period.

 

3.             Successors and Assigns. This
Assignment shall be binding on and inure to the benefit of the parties hereto,
their heirs, executors, administrators, successors in interest and assigns.

 

4.             Attorneys’ Fees. If any dispute
should arise between the Assignor and Assignee regarding the terms or subject
matter of this Assignment or the enforcement or breach of such terms, then the
party prevailing in such dispute, whether by out-of-court settlement or final
judicial determination, shall be entitled to recover from the non-prevailing
party all costs and expenses of such dispute incurred by such prevailing party,
including, without limitation, reasonable attorneys’ fees. This provision shall
not apply to the Landlord or Master Landlord.

 

5.             Interpretation. This Assignment
shall be construed and enforced in accordance with the laws of the State of
Florida.

 

6.             Counterparts. This Assignment and
Assumption of Lease may be executed in multiple counterparts, each of which
shall be deemed an original, but all of which, together, shall constitute one
and the same instrument, binding on the parties hereto. The signature of either
party hereto to any counterpart hereof shall be deemed a signature to, and may
be appended to, any other counterpart hereof.

 

2

 

IN WITNESS WHEREOF, the
undersigned have executed this Assignment as of the date first above written.

 

 

	
  “ASSIGNOR”

  	
  Executed in the presence
  of:

  
	
   

  	
   

  	
   

  
	
  BOOMER’S SPORTS AND

  	
   

  	
   

  
	
  RECREATION CENTER, INC.,

  	
  By:

  	
  /s/
  James J. Wheeler

  	
   

  
	
  a Florida corporation

  	
   

  	
  Name:

  	
  JAMES J. WHEELER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Joseph D. Horsfall

  	
   

  	
  By:

  	
         /s/
  Nina S. Gordon

  	
   

  
	
   

  	
  Name:

  	
  Joseph
  D. Horsfall

  	
   

  	
   

  	
  Name:

  	
  Nina S. Gordon

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “ASSIGNEE”

  	
  Executed in the presence
  of:

  
	
   

  	
   

  	
   

  
	
  FESTIVAL FUN PARKS, LLC,

  	
   

  	
   

  
	
  a Delaware limited
  liability company

  	
  By:

  	
           /s/
  Richard Tomczile

  	
   

  
	
   

  	
   

  	
  Name:

  	
  RICHARD TOMCZILE

  	
   

  
	
   

  	
   

  	
   

  
	
  By FEC Holding Company,
  Inc.

  	
   

  	
   

  
	
  a Delaware corporation

  	
   

  	
   

  
	
  Its Member

  	
  By:

  	
         /s/
  Penny C. Weber

  	
   

  
	
   

  	
   

  	
  Name:

  	
  PENNY
  C. WEBER

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Douglas
  E. Honey

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Douglas
  E. Honey

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  VP

  	
   

  	
   

  	
   

  
									

 

3

 

CONSENT OF LANDLORD

 

The undersigned hereby
consents to the foregoing Assignment and Assumption of Lease.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “LANDLORD”

  	
  Executed in the presence
  of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BOCA RATON AIRPORT

  	
   

  	
   

  
	
  AUTHORITY, a body politic
  and

  	
  By:

  	
  /s/ William Day III

  	
   

  
	
  corporate

  	
   

  	
  Name:

  	
  William Day III

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Charles L. Sieck

  	
   

  	
  By:

  	
  /s/ Don Currie

  	
   

  
	
   

  	
  Name:

  	
  Charles L. Sieck

  	
   

  	
   

  	
  Name:

  	
  Don Currie

  	
   

  
	
   

  	
  Title:

  	
      Chairman

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “MASTER
  LANDLORD”

  	
   

  	
  Executed in the presence
  of:

  
	
   

  	
   

  	
   

  
	
  THE BOARD OF TRUSTEES OF
  THE

  	
   

  	
   

  
	
  INTERNAL IMPROVEMENT FUND

  	
  By:

  	
  /s/ Delmas T. Barber

  	
   

  
	
  OF THE STATE OF FLORIDA

  	
   

  	
  Name:

  	
  Delmas T. Barber

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Daniel T. Crabb

  	
   

  	
  By:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
  Daniel T. Crabb

  	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  Chief, BPLA/DSL/DEP

  /s/ Gloria C. Nelson

  	
   

  	
   

  	
   

  
										

 

4

 

	
  STATE OF FLORIDA

  	
  )

  
	
   

  	
  )  ss.

  
	
  COUNTY OF PALM BEACH

  	
  )

  

 

 

The
foregoing instrument was acknowledged before me this 1st day of September, 1998 by Joseph D. Horsfay,
Vice President of BOOMERS SPORTS
AND RECREATION CENTER, INC., a Florida corporation, on behalf of the
corporation.  x is personally known to me, or has produced                       as
identification.

 

 

	
  (NOTARIAL SEAL)

  	
  /s/ James J. Wheeler

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
  Commission No.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  	
   

  
						

 

	
  STATE OF CALIFORNIA

  	
  )

  	
   

  
	
   

  	
  )  ss.

  	
   

  
	
  COUNTY OF ORANGE

  	
  )

  	
   

  

 

 

The foregoing instrument was acknowledged
before me this 3lst day of August, 1998 by Douglas E. Honey, Vice President of FESTIVAL
FUN PARKS, LLC, a Delaware limited liability company, on behalf of the
corporation.            is
personally known to me, or has produced [ILLEGIBLE] as identification.

 

	
  (NOTARIAL SEAL)

  	
  /s/ Robinson Ramie

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  Name:

  	
  Robinson Ramie

  	
   

  
	
  [SEAL]

  	
  My Commission Expires:

  	
  4/7/99

  	
   

  
	
   

  	
  Commission No.:

  	
   1050926

  	
   

  
						

 

 

	
  STATE OF FLORIDA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF PALM BEACH

  	
  )

  

 

The
foregoing instrument was acknowledged before me this 2 day of September, 1998
by Charles L. Sieck, CHAIRMAN of BOCA RATON AIRPORT AUTHORITY, a body politic
and corporate, on behalf of the Authority.  X is personally known to me,
or has produced                       as
identification.

 

	
  (NOTARIAL SEAL)

  	
  /s/ Richard A. Murdoch

  	
   

  
	
   

  	
  Notary Public

  
	
  [SEAL]

  	
  Name:

  	
   

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
  Commission No.:

  	
   

  	
   

  
						

 

 

	
  STATE OF florida

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  COUNTY OF PALM BEACH

  	
  )

  	
   

  

 

 

The foregoing instrument was acknowledged
before me this        day of September,
1998 by                               ,
                              
of THE BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT FUND OF THE STATE OF
FLORIDA, a
                       ,
on behalf of the                  .
            is
personally known to me, or has produced                        
as identification.

 

 

	
  (NOTARIAL SEAL)

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
  Commission No.:

  	
   

  	
   

  
						

 

 

	
  STATE OF FLORIDA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF PALM BEACH

  	
  )

  

 

The
foregoing instrument was acknowledged before me this        day
of September, 1998 by                                 ,
                         
of BOCA RATON AIRPORT AUTHORITY, a body politic and corporate, on behalf of the
Authority.          is personally
known to me, or has produced                       as
identification.

 

	
  (NOTARIAL SEAL)

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
  Commission No.:

  	
   

  	
   

  
						

 

 

	
  STATE OF FLORIDA

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  COUNTY OF LEON

  	
  )

  	
   

  

 

 

The foregoing instrument was acknowledged
before me this 4th day of September, 1998 by Daniel T [ILLEGIBLE] on behalf of
the BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF
FLORIDA. He is personally known to me.

 

	
  (NOTARIAL SEAL)

  	
  /s/ Gloria C. Nelson

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  Name:

  	
  Gloria C. Nelson

  	
   

  
	
  [SEAL]

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
  Commission No.:

  	
   

  	
   

  
						

 

 

EXHIBIT
“A”

 

LEGAL DESCRIPTION:

 

COMMENCE at the point of intersection of the,
Southeasterly Limited Access right-of-way line of 1-95, as shown on State Road
Department Right-of-Way Map, (Job No. 93220-2411, Sheet 12a, dated 2/15/71,
revised last 8/7/72) and the West line of Section 7, Township 47 South, Range
43 East; thence S 44°41’19” W, along said Southeasterly Limited Access
right-of-way line, being 300.00 feet Southeast of and parallel with the
Southeast right-of-way line of the Seaboard Airline Railroad, 3376.00 feet;
thence S 45°18’41” E, along the Northeasterly right-of-way line of Airport
Road, as shown on Road Plat Book 6, Pages 76 and 77, of the Public Records of
Palm Beach County, Florida, 100.00 feet; thence N 44°41’19” E, 76.85 feet;
thence S 45°18’41” E, 60.00 feet; thence S 44°41’19” W, 76.85 feet to the Point
of Curvature of a curve concave to the Southeast; thence Southwesterly along
the arc of said curve, having a radius of 5419.58 feet, a central angle of
14°57’27” an arc distance of 1414.82 feet to the POINT OF BEGINNING; thence S
64°20’47” E, 199.54 feet; thence S 45°40’18” E, 419.37 feet; thence S 44°19’42”
W, 471.12 feet; thence S 89°19’42” W, 130.10 feet; thence S 44°19’42” W, 557.32
feet; thence N 37°08’27” W, 23.48 feet to the Point of Curvature of a curve
concave to the Northeast; thence Northwesterly, along the arc of said curve,
having a radius of 132.67 feet, a central angle of 53° 56’ 43”, an arc distance
of 124.91 feet; thence N 73°11’44” W, 25.00 feet to a point of intersection
with the Easterly right-of-way line of the road shown on Road Plat Book 6,
Pages 76 and 77 of the Public Records of Palm Beach County, Florida; said point
being on the arc of a curve concave to the East; thence Northerly along the arc
of said curve, which radius bears N 73°11’44” W and having a radius of 3947.28
feet, a central angle of 06°09’17”, an arc distance of 424.02 feet to a Point
of Compound curvature with a curve concave to the East; thence Northerly along
the arc of said curve having a radius of 5419.59 feet; a central angle of 06°
46’ 19”, an arc distance of 640.56 feet to the POINT OF BEGINNING; the last two
courses being coincident with said Easterly road right-of-way line.

 

Said lands situate, lying and being in the
City of Boca Raton, Palm Beach County, Florida; containing 9.83 acres.

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