Document:

Exhibit 10.16

 

 

SECOND
AMENDED AND RESTATED

FLOOR
PLAN SECURITY AGREEMENT

 

 

ORIGINALLY
DATED AS OF JULY 15, 1999,

AMENDED
AND RESTATED AS OF JULY 31, 2002

AMENDED
AND RESTATED AS OF MAY 14, 2004

 

 

BY
AND BETWEEN

 

 

LAZY
DAYS’ R.V. CENTER, INC.

(THE
“COMPANY”)

 

 

AND

 

 

BANK
OF AMERICA, N.A.

(AS
SUCCESSOR BY MERGER TO BANC OF AMERICA SPECIALTY FINANCE, INC.)

AS
COLLATERAL AGENT

UNDER
THE FLOOR PLAN COLLATERAL AGENCY AGREEMENT

(THE
“SECURED PARTY”)

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  GRANT OF
  SECURITY INTEREST IN THE COLLATERAL

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  CONTINUING  AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATIONS,
  COVENANTS, AND AGREEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  COLLECTION OF
  RECEIVABLES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  SPECIAL
  PROVISIONS RE FLOOR PLAN UNITS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  POWER OF
  ATTORNEY

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  DEFAULTS AND
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  APPLICATION OF
  PROCEEDS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  MISCELLANEOUS

  	
   

  

 

i

 

SECOND AMENDED AND RESTATED

FLOOR PLAN SECURITY AGREEMENT

 

This Second Amended and Restated Floor Plan
Security Agreement (this “Agreement”),  originally
executed  as of July 15, 1999, as amended
and restated as of July 31, 2002, and as amended and restated as of May
14, 2004, is executed by and between Lazy Days’ R.V. Center, Inc., a Florida
corporation (the “Company”),  with its mailing address at 6130 Lazy Days Boulevard,
Seffner, Florida 33584-2968, and Bank of America, N.A. (as successor by merger
to Banc of America Specialty Finance, Inc.), as collateral agent (herein,
together with its successors in trust under the Second Amended and Restated
Floor Plan Collateral Agency Agreement originally dated as of July 15,
1999, as amended and restated as of July 31, 2002, and as amended and
restated as of May 14, 2004 (said Second Amended and Restated Floor Plan
Collateral Agency Agreement, as the same may be amended and supplemented from
time to time being herein called the “Floor Plan Collateral
Agency Agreement”),  being herein called the “Secured
Party”) under the Floor Plan Collateral
Agency Agreement, with its mailing address at 1355 Windward Concourse,
Alpharetta, Georgia 30005-8899, Attention: Joe Sagneri.

 

RECITALS:

 

A.                                   Terms defined in the Floor Plan Collateral Agency
Agreement and not otherwise defined herein shall have the respective meanings
assigned thereto in the Floor Plan Collateral Agency Agreement (including by
reference therein to the Floor Plan Credit Agreement defined therein). All
terms which are used in this Agreement which are defined in the Uniform
Commercial Code of the State of New York (“UCC”)  shall have the same meanings herein as such terms are
defined in the UCC, unless this Agreement shall otherwise specifically provide.

 

B.                                     The Company has entered into the Floor Plan
Credit Agreement with Bank of America, N.A. (as successor by merger to Banc of
America Specialty Finance, Inc.) and KeyBank National Association (a national banking association) (the “Initial Lenders”,  and together with each additional lender that becomes a
party to the Floor Plan Credit Agreement, the “Lenders”),  pursuant to
which the Lenders severally agree to make Loans or otherwise extend credit to
the Company on the terms and subject to the conditions set forth in the Floor
Plan Credit Agreement.

 

C.                                     It is a condition precedent to the effectiveness
of the Floor Plan Credit Agreement, and the obligations of the Lenders to
extend credit to the Company thereunder, that the Company enter into this
Agreement.

 

D.                                    The Company has determined that the execution and
delivery of this Agreement is in furtherance of its corporate purposes and in
its best interest and that it will derive substantial benefit, whether directly
or indirectly, from the execution of this Agreement, having regard for all
relevant facts and circumstances.

 

 

NOW, THEREFORE, in consideration of the
premises and for the purpose of inducing the Lenders to enter into the Floor
Plan Credit Agreement and to make or continue their respective extensions of
credit to the Company thereunder, and for other good and valuable
consideration, the receipt whereof is hereby acknowledged, the Company does
hereby covenant and agree with the Secured Party, for the benefit of the
Lenders, as follows:

 

SECTION 1.                                GRANT OF SECURITY INTEREST IN THE COLLATERAL.

 

(a)                                  The
Company hereby grants to the Secured Party a first priority perfected security
interest in and lien on, and acknowledges and agrees that the Secured Party has
and shall continue to have a continuing and unconditional security interest in
and lien on, any and all right, title and interest of the Company, whether now
owned or existing or hereafter created, acquired or arising, in and to:

 

(1)                                  Floor Plan Units.  All Floor Plan Units, whether now owned or existing or hereafter created,
acquired, or arising, or in which the Company now has or hereafter acquires any
rights (the term “Floor Plan Units”  means and includes all inventory of the Company consisting
of recreational vehicles and/or towables that are owned and held for sale or
lease by the Company in the ordinary course of its business, it being
acknowledged and agreed that Floor Plan Units shall not include supplies or
spare parts inventory);

 

(2)                                  Receivables.  All Receivables arising from the sale or lease of Floor Plan Units,
whether now owned or existing or hereafter created, acquired, or arising or in
which the Company now has or hereafter acquires any rights, however evidenced
or acquired (whether or not evidenced by instruments, notes, drafts,
acceptances, documents, chattel paper, or otherwise). For purposes of this Agreement,
“Receivables”  means
every right to payment for a Floor Plan Unit sold or leased, whether or not
earned by performance, and includes every account, account receivable, right to
payment for returned Floor Plan Units under supplier agreements with the
vendors thereof, instruments, notes, drafts, acceptances, documents, chattel
paper, and all of the Company’s rights to any returned or repossessed Floor
Plan Units and the right of stoppage in transit, in each case to the extent
arising from the sale or lease of Floor Plan Units, and includes all amounts
paid or payable to the Company (directly or indirectly) by any manufacturer of
a Floor Plan Unit in whatever form (whether designated as a rebate, incentive,
or otherwise), and includes every lien, guaranty, or security interest that
secures a right to payment for a Floor Plan Unit sold or leased;

 

(3)                                  Records.  Supporting evidence and documents relating to any of the above described
property, including, without limitation, written applications, credit information,
account cards, payment records, correspondence, delivery and installation
certificates, invoice copies, delivery receipts, insurance certificates and the
like, together with all books of account, ledgers and cabinets in which the
same are reflected or maintained, regardless of the medium in which they are
stored, all whether now existing or hereafter arising (collectively, the “Records”);

 

2

 

(4)                                  Participation Account.  That certain interest-bearing account maintained by, or under the control
of, the Secured Party for the account of the Company as provided in the Floor
Plan Credit Agreement;

 

(5)                                  Operating Account.  That certain account maintained with Bank of America, N.A. as provided in
the Floor Plan Credit Agreement;

 

(6)                                  Other Deposit Accounts.  All time,
demand, savings, passbook, and similar accounts maintained with an organization
that is engaged in the business of banking, including without limitation a
bank, credit union, savings bank, trust company, and savings and loan
association owned or maintained by the Company, wherever located;

 

(7)                                  Additions.  All additions to and substitutions and replacements of any and all of the
foregoing, whether now existing or hereafter arising; and

 

(8)                                  Proceeds and Products.  All proceeds and products of the foregoing and all insurance of the
foregoing and the proceeds thereof, whether now existing or hereafter arising;

 

all of the foregoing being herein referred to
as the “Floor Plan Priority  Collateral.”

 

Additionally, to the extent not included in the definition of Floor
Plan Priority Collateral above, the Company hereby grants to the Secured Party
a perfected security interest in and lien on, and acknowledges and agrees that
the Secured Party has and shall continue to have a continuing and unconditional
security interest in and lien on, any and all right, title and interest of the
Company, whether now owned or existing or hereafter created, acquired, or
arising, in and to all other assets and property of the Company, including
without limitation, all of the Company’s now owned or hereafter acquired right,
title, and interest in and to each of the following (collectively, the “Additional Collateral”):

 

(a)                                  all of its Accounts,

 

(b)                                 all of its Books,

 

(c)                                  all of its commercial
tort claims described on Schedule 1 to this Agreement,

 

(d)                                 all of its Deposit
Accounts,

 

(e)                                  all of its Equipment,

 

(f)                                    all of its General
Intangibles,

 

(g)                                 all of its Inventory,

 

 

3

 

 

(h)                                 all of its Investment
Property (including all of its securities and Securities Accounts),

 

(i)                                     all of its
Negotiable Collateral,

 

(j)                                     all of its
Supporting Obligations,

 

(k)                                  money or other assets
of the Company that now or hereafter come into the possession, custody, or
control of any Lender, and

 

(l)                                     the proceeds and
products, whether tangible or intangible, of any of the foregoing, including
proceeds of insurance covering any or all of the foregoing, and any and all
Accounts, Books, Deposit Accounts, Equipment, General Intangibles, Inventory,
Investment Property, Negotiable Collateral, Real Property, Supporting
Obligations, money, or other tangible or intangible property resulting from the
sale, exchange, collection, or other disposition of any of the foregoing, or
any portion thereof or interest therein, and the proceeds thereof,

 

provided, that, the
term “Additional Collateral” does not include
any of the Company’s rights or interests in any license, contract, or agreement
to which the Company is a party or any of its rights or interests thereunder to
the extent that such a grant would, under the express terms of the license,
contract, or agreement or otherwise, result in a breach of the terms of, or
constitute a default under the license, contract, or agreement (other than to
the extent that the term would be rendered ineffective pursuant to Sections
9-406, 9-407 or 9-408 of the UCC of any relevant jurisdiction or any other
applicable law (including the Bankruptcy Code) or principles of equity); provided,
further,
that “Additional Collateral” includes (y) any
and all proceeds of the rights or interests described above to the extent that
the assignment or encumbering of the proceeds is not so restricted, and (z)
upon any such licensor or other applicable party’s consent with respect to any
such otherwise excluded rights or interests described above being obtained,
thereafter such rights or interests described above as well as any proceeds
thereof that theretofore have been excluded from the grant, assignment,
transfer, and conveyance of a security interest shall be included in the
Additional Collateral.

 

For purposes of this Agreement, “Collateral” means, collectively, the Floor Plan Priority
Collateral and the Additional Collateral. 
Additionally, for purposes of this Agreement, the following terms have
the meanings ascribed to them below:

 

“Account” means an
account (as that term is defined in the UCC).

 

“Books” means all of the
Company’s now owned or hereafter acquired books and records (including all of
its records indicating, summarizing, or evidencing its assets (including the
Collateral) or liabilities, all of the Company’s records (in any medium)
relating to its business operations or financial condition, and all of its
goods or General Intangibles related to such information).

 

“Deposit Account” means
any deposit account (as that term is defined in the UCC).

 

4

 

“Equipment” means
equipment (as that term is defined in the UCC) and includes machinery, machine
tools, motors, furniture, furnishings, fixtures, vehicles (including motor
vehicles), computer hardware, tools, parts, and goods (other than consumer
goods, farm products, or Inventory), wherever located, including all
attachments, accessories, accessions, replacements, substitutions, additions,
and improvements to any of the foregoing.

 

“General Intangibles”
means general intangibles (as that term is defined in the UCC), including
payment intangibles, contract rights, rights to payment, rights arising under
common law, statutes, or regulations, choses or things in action, goodwill,
patents, trade names, trade secrets, trademarks, servicemarks, copyrights,
blueprints, drawings, purchase orders, customer lists, monies due or
recoverable from pension funds, route lists, rights to payment and other rights
under any royalty or licensing agreements, infringement claims, computer
programs, information contained on computer disks or tapes, software,
literature, reports, catalogs, insurance premium rebates, tax refunds, and tax
refund claims, and any other personal property other than Accounts, Deposit
Accounts, goods, Investment Property, and Negotiable Collateral.

 

“Inventory” means
inventory (as that term is defined in the UCC).

 

“Investment Property”
means investment property (as that term is defined in the UCC).

 

“Negotiable Collateral”
means letters of credit, letter of credit rights, instruments, promissory
notes, drafts, documents, and chattel paper (including electronic chattel paper
and tangible chattel paper).

 

“Real Property” means
any estates or interests in real property now owned or hereafter acquired by
the Company and the improvements thereto.

 

“Securities Account”
means a securities account (as that term is defined in the UCC).

 

“Supporting Obligation”
means a letter-of-credit right or secondary obligation that supports the
payment or performance of an Account, chattel paper, document, General
Intangible, instrument, or Investment Property.

 

(b)                                This
Agreement is made and given to secure, and shall secure, the prompt payment or
performance in full when due, whether by lapse of time, acceleration or
otherwise, of the Secured Obligations.

 

(c)                                 On the date hereof the security interests and
liens granted hereunder by the Company shall constitute valid and enforceable
security interests under applicable law securing the Secured Obligations.

 

(d)                                The Secured Party may elect (but is not
obligated, except as expressly set forth in Section 2 of this Agreement
upon the full payment and satisfaction of all Secured Obligations and upon
termination or expiration of all commitments to extend credit

 

5

 

consisting of the Secured Obligations) to do
any of the following at any time and from time to time:  (i) receive or release other security for
payment of the Secured Obligations; (ii) release any party primarily or
secondarily liable for payment of the Secured Obligations; (iii) apply any
security held by it to the satisfaction of the Secured Obligations; (iv) discharge
any lien on the Collateral that has not been expressly allowed in writing by it
and pay the costs of insuring, maintaining, and preserving the Collateral; or
(v) apply any proceeds of insurance that it receives in respect of any
Collateral toward payment of the Secured Obligations, whether or not due, as
the Secured Party determines in its sole discretion (and in accordance with the
Floor Plan Collateral Agency Agreement); in each case without prejudice to its
rights under this Agreement.

 

(e)                                 All monies, securities, and other property held
or received by the Secured Party from or for the account of the Company
(including any and all deposits (general or special), account balances, and
credits of the Company with the Secured Party at any time existing), shall be
deemed Collateral and held as security for the Secured Obligations and may be
set-off and applied against the Secured Obligations.  The Company authorizes the Secured Party’s
affiliates to pay or deliver to the Secured Party any deposits or sums credited
by or due from the Secured Party’s affiliates to the Company for application
against any of the Secured Obligations, at any time upon the occurrence of any
Event of Default without any necessity of the Secured Party to resort to other
security or sources of reimbursement for the Secured Obligations.

 

SECTION 2.                                CONTINUING 
AGREEMENT.

 

This Agreement shall be a continuing
agreement in every respect and shall remain in full force and effect until all
of the Secured Obligations shall have been fully paid and satisfied and all
commitments to extend credit consisting of Secured Obligations to the Company
have terminated or expired. Upon such termination of this Agreement, the
Secured Party shall, upon the request and at the expense of the Company, forthwith
release all its liens and security interests hereunder.

 

SECTION 3.                                REPRESENTATIONS, COVENANTS, AND AGREEMENTS.

 

The Company hereby represents to, and
covenants and agrees with, the Secured Party that:

 

(a)                                  Unless
and to the extent the Secured Party shall otherwise consent in writing, the
Company will not store, locate or maintain the Collateral in any location or
account where the Secured Party would not have a perfected security interest,
except for Collateral in transit to the purchaser thereof. As of the date
hereof, the Company’s chief executive office and principal place of business,
and the place where its books and records are kept, is at 6130 Lazy Days
Boulevard, Seffner, Florida 33584-2968, and the Collateral is located at the
locations set forth on Schedule 3(a) hereto; and the Company has no other
places of business or locations of Collateral other than as set forth on
Schedule 3(a) hereto. The Company has not transacted business at any time
during the immediately preceding five-year period,

 

6

 

and does not currently transact business, under any
trade names other than Company’s legal name set forth in the preamble of this
Agreement and the trade names set forth on Schedule 3(a) hereto. The
Company will not maintain its chief executive office or places of business or
the location of its books and records, or permit the Collateral to be located,
at any location other than that specified pursuant to the second sentence of
this clause 3(a), nor shall the Company change its name or transact business
under any trade name, in each case without first providing the Secured Party 30
days’ prior written notice of its intent to do so and filing all copies of any
financing statements or amendments thereto necessary to preserve the perfection
of the Secured Party’s lien on and security interest in the Collateral, and,
upon the request of the Secured Party, furnishing to the Secured Party an
Opinion of Counsel with respect to such perfection, all of the foregoing to be
reasonably satisfactory in form and substance to the Secured Party. The
Company’s federal taxpayer identification number is 59-1764794 and Florida
organizational number is 544013.

 

(b)                                 The
Company will perform its obligations under any contract or other agreement
constituting a part of the Collateral such that no default or event of default
shall occur thereunder, and will comply with the terms and conditions of any
leases, easements, right-of-way agreements and other agreements binding upon
the Company or affecting the Collateral which cover the premises wherein the
Collateral is located and any orders, ordinances, laws and statutes of any
city, state or other governmental entity, department or agency having
jurisdiction with respect to such premises or the conduct of business thereon,
in each case, to the extent necessary to ensure that failure to perform or
non-compliance with such terms and conditions or any such orders, ordinances,
laws and statutes could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect (as defined in the Floor Plan Credit
Agreement), it being understood and agreed that the Secured Party has no
responsibility to perform such obligations, to inquire as to the nature or
sufficiency of any payment received by Secured Party in respect of any of the
Collateral, or as to the sufficiency of any performance by any party under any
contract or agreement, to present or file any claim, or to take any other
action to enforce any performance or to collect the payment of any amounts that
might have been assigned to the Secured Party or to which the Secured Party may
be entitled at any time or times.

 

(c)                                  The Secured Party shall have the right to conduct
at any time and from time to time as often as Secured Party deems advisable or
necessary (and, whenever the Secured Party so desires, on a continuous basis)
an inventory audit of each Floor Plan Unit of the Company on a random basis
regardless of whether an Event of Default exists.  Additionally, the Secured Party shall have
all the rights granted to it in section 7.3 of the Floor Plan Credit
Agreement and all of the provisions of section 7.3 of the Floor Plan
Credit Agreement are incorporated by reference into this Agreement.  The Company will, upon request of the Secured
Party, authorize and instruct all bailees and any other parties at any time
processing, labeling, packaging, holding, storing or shipping all or any part
of the Collateral to

 

7

 

permit the Secured Party or its designees to
examine and inspect any of the Collateral then in such party’s possession and
to verify from such party’s own books and records any information concerning
the Collateral or any part thereof which the Secured Party may seek to verify.
As to any premises not owned by the Company wherein any of the Collateral is
located, the Company shall, at the Secured Party’s request, cause each party
having any right, title or interest in, or lien on, any of such premises to
enter into an agreement (any such agreement to contain a legal description of
the premises) whereby such party disclaims any right, title and interest in and
lien on the Collateral and allows the removal of such Collateral by the Secured
Party and is otherwise in form and substance reasonably acceptable to the
Secured Party.

 

(d)                                 The
Company agrees from time to time to deliver to the Secured Party such evidence
(including copies) of the existence, location and identity of the Collateral
and of its availability as collateral security pursuant hereto as the Secured
Party may reasonably request. The Secured Party shall have the right to verify
all or any part of the Collateral in any manner, and through any medium, which
the Secured Party reasonably considers appropriate, and the Company agrees to
furnish all assistance and information, and perform any acts, which the Secured
Party may reasonably require in connection therewith.

 

(e)                                  The
Company agrees, at its sole cost and expense, to prepare, execute and deliver
to the Secured Party, and thereafter to timely file or record in every place
specified by the Secured Party in its sole discretion, such further agreements
and assignments or other instruments and to do all such other things necessary
or reasonably appropriate to assure the Secured Party its perfected security
interest hereunder, to secure the full and punctual payment and performance of
the Secured Obligations, and to enable the Secured Party to exercise and
enforce its rights and powers under this Agreement with respect to the
Collateral, including, without limitation, executing such notices of liens,
certificates of title, financing statement or statements, continuation
statements or amendments thereof or supplements thereto or other instruments as
may from time to time be required in order to comply with the UCC or any other
laws or statutes which govern security interests in or liens on the Collateral
and any successor statute(s) thereto from time to time in effect in any state
the laws of which apply to security interests in the Collateral or any portion
thereof. The Company hereby agrees that a carbon, photographic or other
reproduction of this Agreement or any such financing statement is sufficient
for filing as a financing statement by the Secured Party without notice thereof
to the Company wherever the Secured Party in its sole discretion desires to
file the same. If any Collateral is in the possession or control of any of the
Company’s agents or processors and the Secured Party so requests, the Company
agrees to notify such agents or processors in writing of the Secured Party’s
security interest therein and, upon the occurrence and continuance of an Event
of Default and at the Secured Party’s request, instruct all agents and
processors in possession of Collateral to hold all such Collateral for the
Secured Party’s account and subject to the Secured Party’s instructions. The
Company agrees to mark its books and records to reflect the

 

8

 

security interest of the Secured Party in the
Collateral.  The Company irrevocably
authorizes the Secured Party to file a UCC financing statement, continuation
statement, or amendment (i) describing the Collateral in the same manner as it
is described in this Agreement or as “all assets” or “all personal property of
the Company” or words of similar effect, regardless of whether any particular
asset included in the Collateral falls within the scope of Article 9 of
the UCC and (ii) providing any other information required by Article 9 of
the UCC for the sufficiency or filing office acceptance of the financing
statement, continuation statement, or amendment.  The Company ratifies the authorization it
granted to the Secured Party to file financing statements and related
amendments before the date of this Agreement.

 

(f)                                    The
Company is and at all times shall remain a “licensed dealer” within the meaning
of chapter 319 of the Florida Statutes, including 319 FLA. STAT. ANN.
§319.27(1) (1999) thereof, or any successor statute thereto. In the event the
exemption from the lien notation requirement provided for in the foregoing
Florida Statutes is no longer applicable to the Company or the relevant
Collateral, and in any event upon the request of the Secured Party, the Company
shall cause the Secured Party’s Lien in and to any portion of the Collateral
subject to a certificate of title law to be duly noted on such certificate of
title or to otherwise be filed in such manner as is required by law in order to
perfect such Lien, and will cause all such certificates of title to be
deposited with the Secured Party. Upon the occurrence of an Event of Default,
the Company shall deliver to the Secured Party a manufacturer’s statement of
origin and/or certificates of title for all Collateral consisting of vehicle
inventory.

 

(g)                                 On
failure of the Company to perform any of the covenants and agreements herein
contained, the Secured Party may, at its option (upon 10 days written notice to
the Company unless the Secured Party in good faith determines that immediate
payment or performance is reasonably necessary to protect or preserve the
Collateral), perform the same and in so doing may expend such sums as the
Secured Party may reasonably deem advisable in the performance thereof,
including without limitation the payment of any insurance premiums, the payment
of any taxes, liens and encumbrances, expenditures made in defending against
any adverse claim and all other expenditures which the Secured Party may be
compelled to make by operation of law or which the Secured Party may make by
agreement or otherwise for the protection of the security hereof.  The Secured Party has no obligation to
preserve the Collateral or to pay taxes, assessments, insurance premiums, and
indebtedness secured by a Lien on the Collateral.  All such sums and amounts so expended shall
be repayable by the Company immediately upon demand, shall constitute so much
additional Secured Obligations and shall bear interest from the date said
amounts are expended at the Covenant Default Rate from time to time in effect.
No such performance of any covenant or agreement by the Secured Party on behalf
of the Company, and no such advancement or expenditure therefor, shall relieve
the Company of any default under the terms of this Agreement. The Secured Party,
in making any payment hereby authorized may do so according to any bill,
statement or estimate procured from the appropriate public

 

9

 

office or holder of the claim to be discharged without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien or title or claim.
The Secured Party, in performing any act hereunder, shall be the sole judge (if
acting in a commercially reasonable manner) of whether the Company is required
to perform the same under the terms of this Agreement.

 

(h)                                 Except
to the extent sold in accordance with Section 10.17 of the Floor Plan
Credit Agreement, immediately upon the Company’s receipt thereof, the Company
shall cause to be delivered to the Secured Party, with appropriate endorsement
and assignment to vest title, with full recourse to the Company, and possession
in the Secured Party, all Collateral consisting of chattel paper or instruments
and which the Company now owns or may at any time or times hereafter acquire.

 

(i)                                     Except
as expressly provided herein and as otherwise permitted under the Floor Plan
Credit Agreement, the Company shall not borrow against the security of any of
the Collateral except from the Lenders, pledge or grant a lien on any of the
Collateral to anyone other than the Secured Party, permit any levy on the
Collateral pursuant to legal process, permit any lien to attach to any of the
Collateral (other than the liens granted to the Secured Party), or sell,
mortgage, transfer, convey, assign or hypothecate, or grant a security interest
in, the Collateral or any part thereof or interest therein.  The Company has not filed any financing
statements in any public office covering any of the Collateral, except as
permitted by the Floor Plan Credit Agreement.

 

(j)                                     The Company is the absolute owner of the
Collateral, free from any liens except for Liens expressly permitted by the
Floor Plan Credit Agreement.

 

(k)                                  All of the Floor Plan Units will be merchantable
and will be maintained in good repair and working condition and the Company
shall prevent any waste or destruction of the Collateral or any part of it,
shall insure the Collateral in the manner required in the Floor Plan Credit
Agreement and consistent with prudent commercial practices, and shall defend
the Collateral against the claims and demands of all Persons at any time
claiming any of the Collateral or any interest in it.

 

(l)                                     The Company shall not use the Collateral or
permit it to be used in violation of any law, agreement, or policy of
insurance.

 

(m)                               The Company shall advise the Secured Party in
writing, at least 60 calendar days before any change in its principal place of
business, registered office,  or other
places of business, any change in its jurisdiction of incorporation, or any
change in the name or organizational number of the Company or the adoption by
the Company of any trade names, assumed names, or fictitious names, and in that
event, shall promptly execute and deliver to the Secured Party  (and the Company agrees

 

10

 

that the Secured Party may execute and
deliver in the Company’s name as the Company’s irrevocable attorney-in-fact)
new UCC financing statements describing the Collateral and otherwise in form
and substance sufficient for recordation wherever necessary or appropriate, as
determined in the Secured Party’s sole discretion, to perfect or continue the
Secured Party’s perfected security interest in the Collateral based on the new
places of business, registered offices, change in its jurisdiction of
incorporation, or changes in or adoption of new names or organizational number
and the Company shall pay all filing and recording and taxes in connection with
those filings.

 

(n)                                 The Company shall notify the Secured Party in
writing immediately upon the creation of Receivables with respect to which the
account debtor is the United States of America or any city, state, county, or
other governmental authority or department, agency, or instrumentality or any
business that is located in a foreign country.

 

(o)                                 The Company shall defend its title or interest in
the Collateral against any and all Liens, charges, offsets, defenses, and
assessments of every kind and nature.

 

(p)                                 With
respect to each existing Account of the Company:  (i) the Company has good and absolute
title to the Account; (ii) the Account is genuine and arose from a
bona fide transaction; (iii) the Account is not evidenced by a judgment,
an Instrument, or Chattel Paper (except for any judgment that has been assigned
to the Secured Party and for any Instrument or Chattel Paper that has been
endorsed by the Company and delivered to Secured Party); (iv) the Company
possesses and promptly shall deliver to the Secured Party on request, or the
Company already has delivered to the Secured Party, all invoices, statements,
or other original evidence of the Account; (v) the amount owing to the
Company with respect to the Account is the amount shown on the Company’s books of
account and on any invoice or statement delivered to the Secured Party;
(vi) the Account has not been transferred to any other person, and no one
except the Company or Secured Party has any claim to it; (vii) a partial
payment of the Account has not been made by anyone; (viii) a setoff,
defense, or counterclaim to an Account does not exist; (ix) the Company has not
entered into an agreement with any person permitting any discount or deduction
of the Account; and (x) none of the Account debtors or other persons obligated
on any of the Collateral is a governmental authority covered by the federal
Assignment of Claims Act or any similar law with respect to the Collateral.

 

(q)                                 The Company does not hold any commercial tort
claims except those listed on Schedule 1 to this Agreement.  If at any time the Company holds or acquires
a commercial tort claim in addition to those listed on Schedule 1, the
Company shall immediately execute and deliver to the Secured Party a written notice
(in form and substance acceptable to the Secured Party) describing in detail
the commercial tort claim and granting to the Secured Party a security interest
in the commercial tort claim (subordinate only to the extent and in the manner

 

11

 

specified in the Intercreditor
Agreement dated May 14, 2004, among the Company, Secured Party, as Agent, and
Wells Fargo Foothill, Inc.) and its proceeds pursuant to the terms and
conditions of this Agreement.

 

SECTION 4.                                COLLECTION OF RECEIVABLES.

 

(a)                                  Unless the Secured Party instructs the Company
otherwise, the Company shall make collection of all Receivables and may use the
same to carry on its business in the ordinary course as presently conducted and
otherwise subject to the terms hereof and of the other Financing Documents. The
Company will enter into such special account or remittance account arrangements
as may be requested by the Secured Party in order to perfect the Secured
Party’s lien on and security interest in, and control over, the Receivables and
all proceeds thereof. All instruments at any time constituting part of the
Receivables (including any postdated checks) shall, upon receipt by the
Company, be immediately endorsed and deposited in such remittance account under
the custody and control of the Secured Party. The Company shall instruct all of
its account debtors to remit all payments in respect of the Receivables to a
lockbox or lockboxes under the custody and control of the Secured Party and
which are maintained at post offices approved by the Secured Party. Upon the
occurrence and during the continuation of any Event of Default, whether or not
the Secured Party has exercised any or all of its rights under other provisions
of this Section 4, the Secured Party or its designee may notify the Company’s
customers or account debtors at any time, without prior notice to the Company,
that such Receivables have been assigned to the Secured Party or of the Secured
Party’s security interest therein and either in its own name, or the Company’s
or both, demand, collect, receive, receipt for, sue for, compound and give
acquittance for any or all amounts due or to become due on Receivables, and in
the Secured Party’s discretion file any claim or take any other action or
proceeding which the Secured Party may deem necessary or appropriate to protect
and realize upon the lien and security interest of the Secured Party in the
Receivables.

 

(b)                                 Proceeds of Receivables transmitted to or
otherwise received by the Secured Party pursuant to any of the provisions of Section 4(a)
shall be handled and administered by the Secured Party in and through a
remittance account or accounts maintained at one or more commercial banks
selected by the Secured Party (collectively the “Depository
Banks” and individually a “Depository Bank”), and
the Company acknowledges that the maintenance of such remittance accounts by
the Secured Party is solely for the Secured Party’s own convenience and that
the Company has no right, title or interest in such remittance accounts or any
amounts at any time standing to the credit thereof. The Secured Party shall
apply all or any part of any proceeds of Receivables received by it from any
source as provided in the Floor Plan Collateral Agency Agreement. The Secured
Party need not apply or give credit for any item included in proceeds of
Receivables until the applicable Depository Bank has received final payment
therefor at its office in cash or final solvent credits current at the site of
deposit acceptable to the Secured Party and such Depository Bank as such.
However, if the Secured Party does permit credit to be given for any item prior
to a Depository Bank receiving final payment therefor and such Depository Bank
fails to receive such final payment or an item is charged back to the Secured
Party or any Depository Bank for any reason, the Secured Party may at its
election charge the amount of

 

12

 

such item back against any such remittance
accounts, together with interest thereon at the Covenant Default Rate.
Concurrently with each transmission of any proceeds of Receivables to any
remittance account, the Company shall furnish the Secured Party with  a report in such form as the Secured Party shall require
identifying the particular Receivable from  which the same
arises or relates. The Secured Party shall have no liability or responsibility
to the Company for a Depository Bank accepting any check, draft or other order
for payment of money bearing the legend “payment in full” or words of similar
import or any other restrictive legend or endorsement whatsoever or be
responsible for determining the correctness of any remittance. All rights and
powers of the Secured Party under this Section 4 may be exercised by such
agent or agents as the Secured Party may from time to time designate. Any such
agent shall have benefit of all provisions of this Section 4 and any other
provisions of this Agreement, including, without limitation, any exculpation
and indemnification, to the same extent as the Secured Party.

 

SECTION 5.                                SPECIAL PROVISIONS RE FLOOR PLAN UNITS.

 

(a)                                  The Company may, unless and until an Event of
Default occurs and is continuing and the Secured Party instructs in writing the
Company otherwise, (i) use, consume and sell the Floor Plan Units in the
ordinary course of its business, but a sale in the ordinary course of business
shall not include any transfer or sale in satisfaction, partial or complete, of
a debt owing by the Company except to the extent permitted by
Section 10.13 of the Floor Plan Credit Agreement, and (ii) settle and
adjust disputes and claims with its customers and account debtors, handle
returns and recoveries and grant discounts, credits and allowances in the
ordinary course of business and otherwise for amounts and on terms which the Company
in good faith considers advisable.

 

(b)                                 Upon the occurrence and during the continuation
of any Event of Default (i) if the Company is so instructed in writing by the
Secured Party, any Floor Plan Unit which is returned by a customer or account
debtor or otherwise recovered shall be set aside and held by the Company as
trustee for the Secured Party and shall remain part of the Secured Party’s
Collateral, (ii) if the Company is so instructed in writing by the Secured
Party, the Company shall notify the Secured Party promptly of all material
returns and recoveries and on request deliver the Floor Plan Units to the
Secured Party, (iii) the Company shall notify the Secured Party promptly of all
disputes and claims and settle or adjust them at no expense to the Secured
Party, but no discount, credit or allowance other than on normal trade terms in
the ordinary course of business shall be granted to any customer or account
debtor and no returns of Floor Plan Units shall be accepted by the Company
without the Secured Party’s consent and (iv) the Secured Party may settle or
adjust disputes and claims involving any material amount directly with
customers or account debtors for amounts and upon terms which the Secured Party
considers advisable.

 

(c)                                  The Secured Party (and any agent therefor) shall
not be responsible for: (i) the safekeeping of the Floor Plan Units; (ii) any
loss or damage to the Floor Plan Units; (iii) any diminution in the value of
the Floor Plan Units; or (iv) any act or default of any carrier, warehouseman,
bailee, forwarding agency or any other Person. As between the Company and the
Secured Party (and any agent therefor), all risk of loss, damage, destruction
or

 

13

 

diminution in value of the Floor Plan Units
shall be borne by the Company. No Floor Plan Unit shall be at any time or times
hereafter stored with a bailee, warehouseman, consignee or similar third party
without the Secured Party’s prior written consent (which consent shall not be
unreasonably withheld). The Company shall not sell any Floor Plan Unit to any
customer on approval, or any other basis which entitles the customer to return
or may obligate the Company to repurchase such Floor Plan Unit.

 

SECTION 6.                                POWER OF ATTORNEY.

 

In addition to any other powers of attorney
contained herein, the Company appoints the Secured Party, its nominee, or any
other Person whom the Secured Party may designate as the Company’s attorney in
fact, with full power and authority upon the occurrence and during the
continuation of any Event of Default, to endorse the Company’s name on any
checks, notes, acceptances, money orders, drafts or other forms of payment or
security that may come into the Secured Party’s possession and on notices of
assignment and on public records, to give notices to the Company’s customers
and suppliers and to do all acts and execute all instruments (including,
without limitation, financing statements or other appropriate documents for
filing with public authorities and amendments and supplements thereto) that the
Secured Party reasonably deems necessary or desirable to accomplish the
purposes of this Agreement.

 

The Company hereby ratifies and approves all
acts of any such attorney and agrees that neither the Secured Party nor any
such attorney will be liable for any acts or omissions that are or were taken
in accordance with this Section 6 nor for any error of judgment or mistake
of fact or law other than their gross negligence or willful misconduct. The
foregoing power of attorney, being coupled with an interest, is irrevocable so
long as this Agreement remains in effect. The Secured Party may, to the extent
permitted by law, file one or more financing statements or other appropriate
documents disclosing its security interest in any or all of the Collateral
without the Company’s signature appearing thereon.

 

SECTION 7.                                DEFAULTS AND REMEDIES.

 

(a)                                  Upon the occurrence and during the continuation
of any Event of Default, the Secured Party shall have, in addition to all other
rights provided herein or by law, the rights and remedies of a secured party
under the UCC (regardless of whether the UCC is the law of the jurisdiction
where the rights or remedies are asserted and regardless of whether the UCC
applies to the affected Collateral), and further the Secured Party may, without
demand and, to the extent permitted by applicable law, without advertisement,
notice, hearing or process of law, all of which the Company hereby waives to
the extent permitted by applicable law, at any time or times, sell and deliver
any or all Collateral held by or for it at public or private sale, at any
securities exchange or broker’s board or at the Secured Party’s office or
elsewhere, for cash, upon credit or otherwise, at such prices and upon such
terms as the Secured Party deems advisable in its sole discretion.

 

Upon the occurrence and during the
continuation of any Event of Default, in addition to any other right or
remedies set forth herein or by applicable law, (i) the Secured Party

 

14

 

shall have the right to take physical
possession of any and all of the Collateral and anything found therein, the
right for that purpose to enter without legal process any premises where the
Collateral may be found (provided such entry be done lawfully and without
breach of peace), and the right to maintain such possession on the Company’s
premises (the Company hereby agreeing, to the extent it may lawfully do so, to
lease such premises without cost or expense to the Secured Party or its
designee if the Secured Party so requests) or to remove the Collateral or any
part thereof to such other places as the Secured Party may desire; (ii) upon
the Secured Party’s demand, the Company shall assemble the Collateral and make
it available to the Secured Party at a place reasonably designated by the
Secured Party; (iii) the Secured Party shall have the right to assign or lease
any or all Collateral; and (iv) the Secured Party shall have the right to
exercise all rights and remedies of the Company under supplier agreements with
vendors of the Floor Plan Units and their affiliates to facilitate the
repurchase of all or any part of the Floor Plan Units thereunder. If the
Secured Party exercises its right to take possession of the Collateral, the
Company shall also at its expense perform any and all other steps reasonably
requested by the Secured Party to preserve and protect the security interest
hereby granted in the Collateral, such as placing and maintaining signs
indicating the security interest of the Secured Party, appointing overseers for
the Collateral and maintaining Collateral records. In the exercise of any such
remedies, the Secured Party may sell the Collateral as a unit even though the
sales price thereof may be in excess of the amount remaining unpaid on the
Secured Obligations. In addition to all other sums due the Secured Party
hereunder, the Company shall pay the Secured Party all costs and expenses
incurred by the Secured Party, including reasonable attorneys’ fees and court
costs, in obtaining, liquidating or enforcing payment of Collateral or the
Secured Obligations or in the prosecution or defense of any action or
proceeding by or against the Secured Party or any Lender or the Company
concerning any matter arising out of or connected with this Agreement or the
Collateral or the Secured Obligations, including, without limitation, any of
the foregoing arising in, arising under or related to a case under the United
States Bankruptcy Code (or any successor statute). Any
requirement of reasonable notice shall be met if such notice is personally
served on or mailed, postage prepaid, to the Company in accordance with
Section 9(b) hereof at least 10 days before the time of sale or other
event giving rise to the requirement of such notice; provided,
however, no notification need be given to the Company if the Company
has signed (other than through the power of attorney granted to Secured Party
under Section 6 hereof), after an Event of Default has occurred, a
statement renouncing any right to notification of sale or other intended
disposition. The Secured Party shall not be obligated to make any
sale or other disposition of the Collateral regardless of notice having been
given. The Secured Party or any Lender may be the purchaser at any such sale.
To the extent permitted by applicable law, the Company hereby waives all of its
rights of redemption from any such sale. The Secured Party may postpone or
cause the postponement of the sale of all or any portion of the Collateral by
announcement at the time and place of such sale, and such sale may, without
further notice, be made at the time and place to which the sale was postponed
or the Secured Party may further postpone such sale by announcement made at
such time and place.

 

The  Secured Party has no
obligation to clean-up or otherwise prepare the Collateral for sale.  The Secured Party may sell the Collateral
without giving any warranties as to the

 

15

 

Collateral and may specifically disclaim warranties of title and other
warranties without adversely affecting the commercial reasonableness of any
sale or other disposition of the Collateral. 
If the Secured Party sells any of the Collateral on credit, the Company
will be credited only with payments actually made by the purchaser, received by
the Secured Party, and applied to the Secured Obligations.  If the purchaser of any Collateral fails to
pay some or all of the purchase price for the Collateral, the Secured Party may
resell the Collateral and the Company will be credited with the proceeds of the
sale as and when received by the Secured Party. 
If the Secured Party purchases any of the Collateral, the Secured Party
may pay for the Collateral by crediting some or all of the Secured
Obligations.  The Company waives any and
all rights that it might have to a judicial hearing in advance of the
enforcement of any of the Secured Party’s rights and remedies under this
Agreement, including its right after an Event of  Default to take immediate possession of the
Collateral to exercise its rights and remedies with respect to the Collateral.

 

The Secured Party is not obligated to marshal any assets in favor of
the Company or other assurances of payment of the Secured Obligations or to
resort to any Collateral or other assurances of payment in any particular
order.  To the extent it may lawfully do
so, the Company will not invoke and irrevocably waives the benefits of any law
relating to the marshalling of Collateral that might delay or impede the
enforcement of the Secured Party’s rights and remedies under this Agreement or
under any other instrument creating or evidencing any of the Secured
Obligations or under which any of the Secured Obligations is outstanding or by
which any of the Secured Obligations is secured or payment is otherwise
assured.

 

The Company is liable to the Secured Party and the Lenders for any
deficiency between the proceeds realized on any disposition of the Collateral
and the amount of Secured Obligations remaining unpaid.  The Secured Party may exercise its right to
collect the Secured Obligations, and to enforce any other security for them,
before or after taking any action under this Agreement.

 

The Secured Party has no obligation to
attempt to satisfy the Secured Obligations by collecting them from any other
person liable for them, and the Secured Party may release, modify, or waive any
collateral provided by another person to secure any of the Secured Obligations
without affecting in any manner the Secured Party’s rights against the Company
or the Collateral.  The Company waives
any rights it might have to require the Secured Party to pursue any person for
any of the Secured Obligations.

 

(b)                                 Without in any way limiting the foregoing, the
Company hereby grants to the Secured Party a royalty-free irrevocable license
and right to use all of the Company’s patents, patent applications, patent
licenses, trademarks, trademark registrations, trademark licenses, trade names,
trade styles, and similar intangibles in connection with any foreclosure or
other realization on all or any part of the Collateral to the extent permitted
by law. The license and right granted the Secured Party hereby shall be without
any royalty or fee or charge whatsoever.

 

16

 

(c)                                  Failure by the Secured Party to exercise any
right, remedy or option under this Agreement or any other agreement between the
Company and the Secured Party or provided by law, or delay by the Secured Party
in exercising the same, shall not operate as a waiver; no waiver hereunder
shall be effective unless it is in writing, signed by the party against whom
such waiver is sought to be enforced and then only to the extent specifically
stated. A waiver of any Event of Default or of a succeeding Event of Default
under this Agreement will not operate as a waiver of any other Event of Default
or a succeeding Event of Default under the same provision or as a waiver of the
provision itself.  Neither the Secured
Party nor any party acting as attorney for the Secured Party shall be liable
hereunder for any acts or omissions or for any error of judgment or mistake of
fact or law other than their gross negligence or willful misconduct. The rights
and remedies of the Secured Party under this Agreement shall be cumulative and
not exclusive of any other right or remedy which the Secured Party may
have.  The Secured Party may exercise any
of its rights or remedies serially, wholly, partially, or collectively, and the
exercise of any one right does not preclude the exercise of any other right.

 

SECTION 8.                                APPLICATION OF PROCEEDS.

 

The proceeds and avails of the Collateral at
any time received by the Secured Party upon the occurrence and during the
continuation of any Event of Default shall, when received by the Secured Party
in cash or its equivalent, be paid and applied as  provided
in the Floor Plan Collateral Agency Agreement.

 

SECTION 9.                                MISCELLANEOUS.

 

(a)                                  This Agreement and the provisions hereof may be
changed, discharged or terminated only by an instrument in writing signed by
the Company and the Secured Party. This Agreement shall create a continuing
security interest in the Collateral and shall be binding upon the Company, its
successors and assigns and shall inure, together with the rights and remedies
of the Secured Party hereunder, to the benefit of the Secured Party and its
successors and assigns; provided, however, that
the Company may not assign its rights or delegate its duties hereunder without
the Secured Party’s prior written consent.

 

(b)                                 All communications provided for herein shall be
in writing, except as otherwise specifically provided for hereinabove, and
shall be given in accordance with Section 7.1 of the Floor Plan Collateral
Agency Agreement.

 

(c)                                  In the event that any provision hereof shall be
deemed to be invalid by reason of the operation of any law or by reason of the
interpretation placed thereon by any court, this Agreement shall be construed
as not containing such provision, but only as to such jurisdictions where such
law or interpretation is operative, and the invalidity of such provision shall
not affect the validity of any remaining provision hereof, and any and all
other provisions hereof which are otherwise lawful and valid shall remain in
full force and effect.

 

17

 

(d)                                THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE
IN THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW BUT INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF
THE NEW YORK GENERAL OBLIGATIONS LAW, EXCEPT AS REQUIRED BY MANDATORY
PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF
THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY
COLLATERAL ARE  GOVERNED BY THE LAWS OF A
JURISDICTION OTHER THAN THE STATE OF NEW YORK. The headings in this instrument
are for convenience of reference only and shall not limit or otherwise affect
the meaning of any provision hereof.  For
purposes of this Agreement, “UCC” means the
Uniform Commercial Code of the State of New York or any successor statute or,
when the laws of another jurisdiction govern the method or manner of the
creation of any security interest in any of the Collateral, the Uniform
Commercial Code (or any successor statute) of that jurisdiction.

 

(e)                                  This Agreement may be executed in any number of
counterparts and by different parties hereto on separate counterpart signature
pages, each constituting an original, but all together one and the same
instrument.

 

(f)                                    The parties hereto acknowledge that the liens and
security interests provided for herein are subject to the terms of the
Intercreditor Agreement and the Secured Party is hereby authorized and directed
to, and hereby agrees to, comply with the terms of the Intercreditor Agreement
with respect to the Collateral subject thereto.

 

(g)                                EACH OF THE PARTIES HERETO HEREBY, TO THE FULLEST
EXTENT PERMITTED BY LAW, WAIVES TRIAL BY JURY IN ANY ACTION BROUGHT UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER FINANCING DOCUMENTS.

 

(h)                                The Company certifies to the Secured Party that
neither the Secured Party, any Lender, nor any agent, attorney, or
representative of Secured Party or any Lender has represented, expressly or
otherwise, that the Secured Party would not seek to enforce any waivers
contained in this Agreement, and acknowledges that the Secured Party and the
Lenders have relied on, among other things, the waivers contained in this
Agreement and this certification.

 

(i)                                     This Agreement inures to the benefit of Secured
Party and its assignees and successors in interest and is binding on the
Company and its assignees and successors in interest.

 

[SIGNATURE PAGE TO FOLLOW]

 

18

 

IN WITNESS WHEREOF, the Company has caused
this Agreement to be duly executed as of the date first above written.

 

	
   

  	
  LAZY DAYS’ R.V. CENTER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  

 

 

Accepted and agreed to by the Secured Party
as of the date first above written.

 

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
  (AS SUCCESSOR
  BY MERGER TO BANC

  
	
   

  	
   

  	
  OF AMERICA
  SPECIALTY FINANCE, INC.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  
						

 

19

 

PLACES OF BUSINESS, LOCATIONS
OF COLLATERAL, TRADE NAMES

 

A.                                   Places of Business

 

	
  1.

  	
   

  	
  6130 Lazy Days’ Boulevard

  
	
   

  	
   

  	
  Seffner, Florida 33584-2968

  

 

B.                                     Locations of Collateral

 

	
  1.

  	
   

  	
  6130 Lazy Days’ Boulevard Seffner, Florida
  33584-968

  
	
  2.

  	
   

  	
  Participation Account established at Bank
  of America, N.A.

  
	
  3.

  	
   

  	
  Operating Account (Established at Bank of
  America, N.A.)

  

 

C.                                     Trade Names

 

	
  1.

  	
   

  	
  Lazy Days’ RV Resort

  
	
  2.

  	
   

  	
  Lazy Days’ RV SuperCenter

  
	
  3.

  	
   

  	
  Lazy Days

  
	
  4.

  	
   

  	
  Tire Re-Nu

  
	
  5.

  	
   

  	
  CrownClub

  
	
  6.

  	
   

  	
  Rallypark

  

 

20Exhibit 10.17

 

GROUND LEASE

 

by and between

 

I-4 LAND HOLDING LIMITED COMPANY (“Landlord”)

 

and

 

LAZY DAYS’ R.V. CENTER, INC. (“Tenant”)

 

Dated as of
July        , 1999

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1 Leased Premises

  	
   

  
	
   

  	
   

  
	
  ARTICLE 2 Term

  	
   

  
	
   

  	
   

  
	
  ARTICLE 3 Conditions Precedent

  	
   

  
	
   

  	
   

  
	
  ARTICLE 4 Use

  	
   

  
	
   

  	
   

  
	
  ARTICLE 5 Rent

  	
   

  
	
   

  	
   

  
	
  ARTICLE 6 Utilities

  	
   

  
	
   

  	
   

  
	
  ARTICLE 7 Insurance

  	
   

  
	
   

  	
   

  
	
  ARTICLE 8 Taxes

  	
   

  
	
   

  	
   

  
	
  ARTICLE 9 Changes, Alterations and
  Additions

  	
   

  
	
   

  	
   

  
	
  ARTICLE 10 Mechanic’s Liens

  	
   

  
	
   

  	
   

  
	
  ARTICLE 11 Signs/Advertising

  	
   

  
	
   

  	
   

  
	
  ARTICLE 12 Tenant’s Fixtures and
  Personal Property

  	
   

  
	
   

  	
   

  
	
  ARTICLE 13 Assignment and
  Subletting

  	
   

  
	
   

  	
   

  
	
  ARTICLE 14 Repairs and Maintenance

  	
   

  
	
   

  	
   

  
	
  ARTICLE 15 Casualty

  	
   

  
	
   

  	
   

  
	
  ARTICLE 16 Bankruptcy - Insolvency

  	
   

  
	
   

  	
   

  
	
  ARTICLE 17 Defaults/Remedies

  	
   

  
	
   

  	
   

  
	
  ARTICLE 18 Condemnation

  	
   

  
	
   

  	
   

  
	
  ARTICLE 19 Covenant of Title

  	
   

  
	
   

  	
   

  
	
  ARTICLE 20 Leasehold Mortgages

  	
   

  
	
   

  	
   

  
	
  ARTICLE 21 Fee Mortgages

  	
   

  
	
   

  	
   

  
	
  ARTICLE 22 Force Majeure

  	
   

  

 

i

 

	
  ARTICLE 23 Tax Treatment

  	
   

  
	
   

  	
   

  
	
  ARTICLE 24 Indemnification

  	
   

  
	
   

  	
   

  
	
  ARTICLE 25 Hazardous Material

  	
   

  
	
   

  	
   

  
	
  ARTICLE 26 Ownership of Improvement/
  Conditions of Demised Premises at Termination

  	
   

  
	
   

  	
   

  
	
  ARTICLE 27 Holding Over

  	
   

  
	
   

  	
   

  
	
  ARTICLE 28 Notices

  	
   

  
	
   

  	
   

  
	
  ARTICLE 29 Partial Invalidity

  	
   

  
	
   

  	
   

  
	
  ARTICLE 30 Entire Agreement - Applicable
  Law

  	
   

  
	
   

  	
   

  
	
  ARTICLE 31 Successors and Assigns

  	
   

  
	
   

  	
   

  
	
  ARTICLE 32 Memorandum of Lease

  	
   

  
	
   

  	
   

  
	
  ARTICLE 33 Right of First Offer/Right
  of First Refusal/Option to Purchase

  	
   

  
	
   

  	
   

  
	
  ARTICLE 34 Estoppel Certificates

  	
   

  
	
   

  	
   

  
	
  ARTICLE 35 Dispute Resolution

  	
   

  
	
   

  	
   

  
	
  ARTICLE 36
  Miscellaneous

  	
   

  

 

ii

 

GROUND LEASE

 

This Ground Lease
(“Lease”) is made and entered into as of the
            day of July,
1999, by and between I-4 LAND HOLDING LIMITED COMPANY, a Florida limited
liability company (“Landlord”), and LAZY DAYS’ R.V. CENTER, INC., a
Florida corporation (“Tenant”).

 

RECITALS

 

A.                                   Prior
to the date hereof, Tenant has operated its recreational vehicle business on an
approximately 126 acre site located at 6130 Lazy Days Blvd., Seffner, Florida
(the “Site”).  The land included
within such 126-acre site is owned by the Landlord and described in Exhibit A
attached hereto (the “Land”). 
Tenant is the owner of all buildings and structures now located on the
Land and all other improvements located on the Land which are not owned by
Landlord (the “Tenant Improvements”). 
Landlord is the owner of asphalt and concrete paving, landscaping and
fencing now located on the Land (the “Landlord Improvements”).  The Land and the Landlord Improvements are
collectively referred to herein as the “Demised Premises.”  The Landlord Improvements and the Tenant
Improvements are sometimes collectively referred to herein as the
“Improvements.”

 

B.                                     Landlord
and Tenant are parties to an existing lease for the Site dated as of
January 1, 1998 (the “Existing Lease”).  It is the intention of the Landlord and the
Tenant that the Existing Lease be terminated, and that this Lease will be the
operative lease for the Site from and after the date hereof.

 

AGREEMENT

 

In consideration
of the mutual covenants and agreements contained in this Lease and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Landlord and Tenant agree as follows:

 

ARTICLE 1

 

Leased Premises

 

1.1                                 The
Existing Lease is hereby terminated.

 

1.2                                 Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, the Land and
the Improvements.

 

1.3                                 Tenant
reserves the right to construct future site improvements and ancillary
facilities including, without limitation, buildings, camping grounds, roadways,
walkways, detention ponds, wetlands, and utility lines and poles (the “Future
Improvements”) on the Land in accordance with Article 9 below.  The Future Improvements described in Exhibit
B are hereby approved by Landlord.  The
Future Improvements, after completion, shall become part of the Tenant
Improvements.

 

1

 

1.4                                 Landlord
and Tenant (and Tenant’s employees, licensees, and invitees) acknowledge and
agree that non-exclusive easements and rights to use public and common
facilities exist on or service the Demised Premises for certain third party use
including, but not limited to, all entrances, exits, driveways, parking areas,
walks, service drives and common utilities.

 

ARTICLE 2

 

Term

 

2.1                                 This
Lease shall be effective upon execution hereof and the initial term of this
Lease shall be for a period of twenty-three (23) years and six (6) months (the
“Initial Term”) commencing as of the date first written above, which
date shall also be the “Rent Commencement Date.”  The term “Lease Year” as used herein shall be
defined as each successive twelve month period following the Rent Commencement
Date.

 

2.2                                 Tenant
shall have the option at the end of the Initial Term to extend the term of this
Lease for up to three (3) additional five (5)-year periods (each, an “Option
Term”) upon giving Landlord written notice of such election not less than
three hundred sixty five (365) days prior to the expiration of the Initial Term
or any Option Term.  All terms and
conditions of the Lease as stated herein shall apply during each Option Term;
provided, however, the Minimum Annual Rent (as defined in Article 5) for
each Option Term shall be adjusted pursuant to Section 5.1 hereof.

 

ARTICLE 3

 

Conditions Precedent

 

This Lease shall
become effective upon the merger of the Lazy Days’ R V. Center, Inc. Employee
Stock Ownership Plan into the Alliance Holdings, Inc. Employee Stock Ownership
Plan and Trust.

 

ARTICLE 4

 

Use

 

4.1                                 The
Demised Premises and Improvements shall be used for the purposes of Tenant’s
recreational vehicle business as presently or in the future conducted and for
any lawful purposes approved by the Landlord in its reasonable discretion.

 

4.2                                 Tenant
shall not use the Demised Premises or the Improvements, or permit the Demised
Premises or the Improvements to be used, in whole or in part during the term of
this Lease for any purpose or use that is in violation of any law.

 

From and after the
date hereof, Tenant shall, at its own cost and expense, cause the Demised
Premises and the Tenant Improvements to comply with (including, without
limitation, making structural or extraordinary repairs, improvements and
alterations) all present and future laws, rules, regulations and codes,
including, without limitation, the Americans with

 

2

 

Disabilities Act.  Tenant shall
have the right to contest or review, by legal procedure or in such other manner
as Tenant may deem suitable, at its own expense, any such laws, rules,
regulations, or codes and may contest the applicability of the same to the
Demised Premises or the Tenant Improvements, provided that Landlord is not
subjected to any liability and/or prosecution as a result thereof and that
Landlord’s title to the Demised Premises is not subjected to forfeiture or
otherwise materially affected in any manner as a result thereof.  Such proceedings shall be conducted promptly,
and shall include, if Tenant so decides, appropriate appeals.  Whenever any such requirements become
absolute after a contest, Tenant shall diligently comply with the same or so
much thereof as shall have been judicially sustained.

 

4.3                                 Tenant
shall not use the Demised Premises or the Tenant Improvements for or carry on
or permit in or upon the Demised Premises or the Tenant Improvements, or any
party thereof, any nuisance.  Tenant
agrees not to cause, permit or suffer any waste to the Demised Premises or the
Tenant Improvements.

 

ARTICLE 5

 

Rent

 

5.1                                 Commencing
on the Rent Commencement Date, Tenant agrees to pay to Landlord minimum annual
rent in an amount equal to $3,708,197 per year for the initial five Lease Years
and $4,200,000 per year thereafter (“Minimum Annual Rent”).  In addition to such fixed increase in Minimum
Annual Rent, the Minimum Annual Rent shall be subject to the following cost of
living adjustments.  On the fifth, 81⁄2th,
131⁄2th, and 181⁄2th anniversary of the Rent Commencement Date and on the
commencement date of each Option Term (each, an “Adjustment Date”),
Minimum Annual Rent shall be increased by an amount equal to the product
obtained by multiplying the greater of $4,200,000 or the Minimum Annual Rent
applicable to the Lease Year immediately preceding such Adjustment Date by the
Index Change.  As used herein, the term “Index
Change” shall mean the cumulative percentage increase (if any) in the cost
of living for the five-(5) year period immediately preceding each Adjustment
Date in the Consumer Price Index All Urban Consumers U.S. City Average
(1982-84=100), published by the United States Department of Labor, Bureau of
Labor Statistics (“Index”), except the 81⁄2th year adjustment shall be based on
$4,200,000 increased by the cumulative percentage increase (if any) in the cost
of living for the ten-year period immediately preceding such Adjustment Date.

 

5.2                                 The
Minimum Annual Rent shall be paid in equal monthly installments in advance,
without demand and without offset (except as expressly provided herein), on the
first day of each calendar month during the term of this Lease commencing on
the Rent Commencement Date and prorated on a per diem basis for a fraction of
any month.  All rental and other payments
due from Tenant shall be paid by Tenant to Landlord at the address set forth in
Article 30, or at such other place as may from time to time be designated
by Landlord in writing.  All such payments
shall bear interest from the date due until paid at the prevailing Wall Street
Journal Prime Rate of Interest plus five percent (5%) if not paid within
fifteen (15) days of notice from Landlord that such payment is past due.  A late fee of five percent (5%) of the
applicable payment shall be due and payable to Landlord if any portion of a
payment required of Tenant is not paid within thirty (30) days after such
payment is due.

 

3

 

5.3                                 It
is the intention of Landlord and Tenant that the rent herein specified shall be
net to Landlord in each Lease Year during the term of this Lease and that all
costs, expenses and obligations of every kind (including but not limited to
taxes, insurance and maintenance) relating to the Demised Premises and
Improvements which may arise or become due during the term of this Lease shall
be paid by Tenant.  Nothing contained
herein shall make Landlord and Tenant partners or joint venturers or liable for
the debts of the other.

 

ARTICLE 6

 

Utilities

 

Tenant shall pay
all charges for all utility services furnished to the Demised Premises.  If any utility service is interrupted solely
as a result of the gross negligence or willful misconduct of Landlord, its
agents or employees, there shall be equitable abatement of rent and other
charges due hereunder based upon the length of period and proportion of the
Demised Premises and Improvements which are nonfunctional.

 

ARTICLE 7

 

Insurance

 

7.1                                 Tenant
covenants and agrees that it will carry and maintain, during the entire term
hereof, at Tenant’s sale cost and expense, the following types of insurance, in
the amount specified and in the form hereinafter provided for:

 

(a)                                  Commercial
general liability insurance covering injury or death to persons or damage to
property with coverage limits of the greater of (i) $1,000,000.00 combined and
$1,000,000.00 each occurrence, or (ii) such additional coverage as Landlord may
reasonably require during the Term (but Landlord shall not adjust such required
insurance limits more frequently than once every three (3) years), insuring
against any and all liability of the insured with respect to the Demised
Premises and Improvements or arising out of the maintenance, use or occupancy
thereof.  All such liability insurance
may be provided under umbrella-type policies maintained by Tenant.

 

(b)                                 Fire
insurance with extended coverage endorsement upon the Improvements in an amount
equal to the replacement value of the Improvements above the foundation
walls.  All fire and extended coverage
insurance which Tenant is obligated to maintain shall be for the benefit of
Landlord and Tenant, as their interests may appear, and shall insure against
all perils.  In the case of loss or damage
by fire or other risks insured against, such insurance proceeds shall be
applied to the replacement of the damaged property unless both Landlord and
Tenant agree not to replace the damaged property, in which case any insurance
proceeds remaining after deducting the expenses of removing the damaged or
destroyed property shall be apportioned between Landlord and Tenant based on
the relative ownership of the damaged property, and as to any proceeds
applicable to Improvements owned by Tenant, Landlord and Tenant shall share in
such proceeds with Tenant receiving the share that represents the proportion of
the remaining useful life of the applicable Improvement prior to its
destruction

 

4

 

that would have
fallen within the then current Term, and the Landlord’s share being the
remainder.

 

(c)                                  Worker’s
compensation coverage in compliance with the laws of the State of Florida.

 

7.2                                 The
insurance coverages required hereunder shall be carried with an insurance
company or companies selected by Tenant and reasonably acceptable to
Landlord.  Such insurance may be carried
under a blanket policy or policies covering other liabilities and locations of
Tenant.  All such policies shall be issued
in the name of Tenant and shall name Landlord, any fee mortgagee and any
leasehold mortgagee as additional insureds. 
Casualty insurance policies shall contain a mortgagee loss payable
clause in favor of Landlord, subject to the prior rights of any Leasehold
Mortgagee.  From time to time, Tenant
shall furnish Landlord such evidence as Landlord may require to indicate that
the foregoing insurance is in full force and effect.  All policies of insurance shall provide that
such policies shall not be amended or canceled without thirty (30) days prior
written notice to Tenant and Landlord.

 

ARTICLE 8

 

Taxes

 

8.1                                 Commencing
on the Rent Commencement Date, Tenant shall pay to Landlord all ad valorem real
estate taxes and assessments attributable to the Demised Premises or the
Improvements (if taxed as part of the Demised Premises or not otherwise
directly taxed to Tenant) within thirty (30) days following receipt of
Landlord’s written notification that such taxes and assessments are due and
payable.  Landlord’s written notification
shall be forwarded to Tenant and shall be accompanied by a copy of the tax bill
or certificate and shall indicate the portion of real estate taxes and
assessments attributable to the Demised Premises or Improvements.  Tenant shall not be liable for any portion of
penalties or interest which may be assessed as a result of late payment of
taxes or assessments by Landlord.  If any
assessment is payable in installments, Tenant shall pay to Landlord any
installment as and when such installment becomes due and payable.  Tenant’s liability for ad valorem real estate
taxes and assessments shall be prorated for the Lease Years in which this Lease
commences and terminates.

 

8.2                                 Should
Landlord initiate proceedings to contest the validity or amount of any tax or
assessment levied against the Demised Premises or Improvements, Tenant, at
Landlord’s expense, will cooperate in such proceedings and should such
proceedings be successful, Tenant will be entitled to its proportionate share
of any tax refund or future abatement, after deducting therefrom payment of all
expenses incurred by Landlord in any such proceeding.  Should Tenant initiate proceedings to contest
the validity of any tax or assessment levied against the Demised Premises or
Improvements, Landlord shall, at Tenant’s expense, cooperate in such
proceedings.

 

8.3                                 Tenant
shall pay to Landlord, in addition to and along with any and all rent otherwise
payable hereunder, any excise, transaction, sales or privilege taxes, other
than income and estate taxes, now or hereafter imposed by any governmental
agency upon Landlord

 

5

 

and attributable to or
measured by rent or other charges or prorations payable by Tenant
hereunder.  Nothing herein contained
shall require Tenant to pay income taxes assessed against Landlord, or any
capital levy, corporation franchise, excess profits, estate, succession or
transfer taxes of Landlord, or any taxes, fees or other costs attributable or
resulting from any mortgage granted by Landlord on its interest in the Demised
Premises or Improvements.

 

ARTICLE 9

 

Changes, Alterations and Additions

 

9.1                                 Tenant
shall have the right at any time and from time to time during the term of this
Lease to make changes, replacements, alterations, modifications or additions to
or removal of the Tenant Improvements, except that any structural change to any
Landlord Improvement or the construction of any new improvement on the Land
shall require Landlord’s prior approval, which approval shall not be
unreasonably withheld or delayed.  No
such change, replacement, alteration, modification, addition, or removal shall
be undertaken or commenced until Tenant shall have procured and paid for all
required permits and licenses of all governmental authorities having
jurisdiction thereof.

 

9.2                                 All
work done in connection with any change, replacement, alteration, modification,
addition or removal to the Improvements shall be done with reasonable
diligence, in good workmanlike manner and in compliance with all applicable
laws and regulations of all governmental authorities having jurisdiction.  The cost of any such change, replacement,
alteration, modification, addition or removal shall be paid or discharged by
Tenant so that the Demised Premises and Improvements at all times shall be free
of any and all liens resulting therefrom.

 

ARTICLE 10

 

Mechanic’s Liens

 

10.1                           Tenant
shall pay or cause to be paid all costs for work done by it or caused to be
done by it on the Demised Premises or Improvements, and Tenant will keep the
Demised Premises free and clear of all mechanic’s liens and other liens due to
work done for Tenant or persons claiming under Tenant.  Tenant shall indemnify and save Landlord
harmless from all liability, loss, damage, costs, attorneys’ fees and all other
expenses on account of claims of lien of laborers or materialmen or others for
work performed or materials or supplies furnished for Tenant or persons
claiming under Tenant.

 

10.2                           During
the Term of this Lease, Tenant shall not suffer or permit any mechanic’s,
materialmen’s, attachment, execution or other liens or stop notices to attach
or be filed against the Demised Premises (including the Improvements thereon),
Tenant’s leasehold interest in this Lease, against Landlord, or against any
lender holding funds for any work or improvement upon the Demised Premises or
Improvements, except that Tenant shall be permitted to mortgage its leasehold
interest in the Demised Premises and its interest in the Improvements, is
provided for in Article 20 hereof. 
If any such liens, stop notices or similar proceedings are filed or commenced,
Tenant shall, within thirty (30) days after notice of the

 

6

 

filing thereof or such
other reasonable time, cause the same to be discharged of record by payment,
deposit, order of court or by bonding; provided, however, that Tenant shall
have the right to contest, with due diligence, the validity or amount of any
such lien or stop notice once discharged of record.

 

10.3                           Nothing
in this Lease shall be deemed or construed in any way as constituting the consent
or request of Landlord, express or implied, by inference or otherwise, to any
contractor, subcontractor, laborer or materialman, for the performance of any
labor or the furnishing of any materials for any construction, alteration,
repair, replacement or improvement of the Demised Premises and Improvements to
be made on the Demised Premises by Tenant, nor as giving Tenant any right,
power or authority to contract for or permit, on Landlord’s behalf or as to
Landlord’s interest, the rendering of any services or the furnishing of any
materials.  The Memorandum of Lease to be
recorded by the parties shall contain the statutorily required disclosures to
effectuate this concept.

 

ARTICLE 11

 

Signs/Advertising

 

11.1                           Tenant
shall be allowed to affix and maintain signs as approved from time to time by
any requisite governmental agency and as comply with any covenants currently of
record affecting the Demised Premises or Improvements, provided that the
Landlord shall have the right to approve the size and location of any signage
the Tenant desires to erect, provided such approval shall not be unreasonably
withheld or delayed.

 

11.2                           Upon
expiration or termination of this Lease, Tenant, at its election and cost, and
with Landlord’s prior approval (without regard to the value) as to any signage
that may be incapable of lawfully being replaced, may remove any of its signs
and other advertising matter on the Demised Premises or Improvements or
elsewhere where signs have been placed.

 

ARTICLE 12

 

Tenant’s Fixtures and Personal Property

 

All of Tenant’s
personal property located on the Demised Premises or Improvements, including
furniture, furnishings, fixtures and equipment and all other property installed
in or attached to the Improvements at Tenant’s expense, whether or not such
property constitutes fixtures or otherwise (collectively, “Tenant’s Property”),
shall remain the property of Tenant, and Tenant shall have the right to remove
any and all of Tenant’s Property at any time prior to the expiration of the
term hereof for purposes of replacement or otherwise.

 

ARTICLE 13

 

Assignment and Subletting

 

13.1                           Subject
to subsection 13.2 below, Tenant shall not assign or transfer this Lease
or Tenant’s interest in and to the Demised Premises or Improvements or any part
thereof or sublet all or any portion of the Demised Premises or Improvements
without the prior written

 

7

 

consent of Landlord,
which consent shall not be unreasonably withheld or delayed.  No such assignment or subletting shall
relieve Tenant from its liability to Landlord under the Lease.  Any attempted transfer, assignment or
subletting without the written consent of Landlord shall be void and confer no
rights upon any third person.

 

13.2                           Notwithstanding
the provisions of Section 13.1 above to the contrary, Tenant may assign
its interest in this Lease, without Landlord’s consent, to any corporation or
entity which controls, is controlled by or is under common control with Tenant,
or to any corporation or entity resulting from the merger or consolidation with
Tenant or by Tenant into such corporation or to any successor corporation in
the event of the sale of substantially all of the assets of Tenant
(collectively “Tenant Affiliate”) provided that (a) no Event of Default
then exists hereunder; (b) before such assignment shall become effective, said
assignee shall assume in writing all of the obligations of Tenant under this
Lease; (c) Landlord shall receive at least thirty (30) days prior notice of
such assignment, along with supporting information sufficient for Landlord to
confirm that such assignment qualifies hereunder; and (d) such Tenant Affiliate
has financial ability, net worth, and credit equal to or greater than that of
Tenant at the time of the transfer.

 

13.3                           Upon
assignment by Landlord of its interest under this Lease, Landlord shall be
released from any liability thereafter accruing under this Lease after the date
the Lease is assigned, but Landlord shall remain liable for any of its
obligations under this Lease accruing prior to the date of such
assignment.  Upon such an assignment by
Landlord, Tenant shall thereafter attorn to and be bound to the transferee of
Landlord’s interest as though such transferee had been the original Landlord
hereunder.

 

13.4                           The
limitations on assignment by Tenant under this Section 13 shall not apply
to a Leasehold Mortgagee of Tenant permitted pursuant to Section 20
hereof.

 

ARTICLE 14

 

Repairs and Maintenance

 

14.1                           Subject
to the provisions of Article 15 herein, Tenant shall, at its own cost and
expense, keep and maintain the Demised Premises and Improvements in good, safe
and sanitary order, condition and repair, and make all repairs which, in its
reasonable judgment, are necessary to the Demised Premises and Improvements.

 

14.2                           The
parties acknowledge that Landlord shall have no repair or maintenance
obligations whatsoever with respect to the Demised Premises or
Improvements.  Tenant waives the benefit
of any law now or hereafter in effect which would otherwise afford Tenant the
right to make repairs at Landlord’s expense or to terminate this Lease because
of Landlord’s failure to keep the Improvements in good order, condition and
repair.

 

8

 

ARTICLE 15

 

Casualty

 

If the Demised
Premises and/or Improvements are damaged or destroyed by fire or other
casualty, Tenant, at its sole cost and expense, shall, subject to the second
paragraph of this Article 15, repair and restore the same to such
condition as existed prior to its destruction.

 

Notwithstanding
the first paragraph immediately above, if Landlord and Tenant mutually decide
not to repair and restore the Improvements as herein provided, Tenant shall
remove the damaged portions of the Improvements.  If Landlord and Tenant elect not to rebuild
and restore the Improvements as herein provided, the proceeds of insurance
shall be applied in accordance with Section 7.1(b).  Neither Tenant nor Landlord shall be liable
for any loss or damage to the Demised Premises and/or Improvements resulting
from fire or other casualty to the extent that such loss or damage is actually
covered by insurance proceeds which are applied as required herein.

 

ARTICLE 16

 

Bankruptcy - Insolvency

 

If Tenant is
adjudged bankrupt or insolvent, files or consents to the filing of a petition
in bankruptcy under the Federal Bankruptcy Code or any equivalent state law,
applies for or consents to the appointment of a receiver for all or
substantially all of its assets, or makes a general assignment for the benefit of
its creditors, then except as otherwise provided in this Article 16, an
Event of Default by Tenant shall have occurred under this Lease and, to the
extent from time to time permitted by applicable law, including but not limited
to the Federal Bankruptcy Code, Landlord shall be entitled to exercise all
remedies set forth in Article 17 below. 
Notwithstanding the foregoing, if Tenant files a petition for
reorganization under Chapter 11 of the Federal Bankruptcy Code, and the Tenant
assumes this Lease within sixty (60) days from the filing of the proceeding,
then this Lease shall continue and the filing of such petition for
reorganization shall not constitute an Event of Default under this Lease.

 

ARTICLE 17

 

Defaults/Remedies

 

17.1                           The
occurrence of any of the following shall constitute an Event of Default under
this Lease by Tenant:

 

(a)                                  A
failure by Tenant to pay when due all or any part of the rent or other monetary
payment required to be paid by Tenant to Landlord or third parties as required
by this Lease where such failure continues for fifteen (15) days after receipt
of written notice from Landlord to Tenant of such default;

 

(b)                                 A
failure by Tenant to observe and perform any non-monetary provisions of this
Lease to be observed or performed by Tenant where such failure continues for
thirty (30) days after receipt of written notice from Landlord to Tenant of
such default; provided,

 

9

 

that if the nature
of such default is curable but that the same cannot with due diligence be cured
within thirty (30) days, Tenant shall not be deemed to be in default if it
shall within such thirty day period commence curing the default and thereafter
diligently prosecutes the same to completion;

 

(c)                                  A
violation of the provisions of Section 13.1 or 13.2.

 

17.2                           In the
event of any Event of Default by Tenant which remains uncured beyond any
applicable cure period, then, in addition to any and all rights and remedies
available to Landlord at law or in equity, Landlord shall have the right, by
giving written notice to Tenant of such election by Landlord, to accelerate all
rent due hereunder for the remainder of the Term and immediately sue for rent
or to terminate this Lease and all rights of Tenant hereunder and to re-enter
the Demised Premises or Improvements without waiving the right to recover from
Tenant all damages which result from Tenant’s default.

 

17.3                           If
Landlord elects to re-enter as above provided, or takes possession of the
Demised Premises or Improvements pursuant to legal proceedings or pursuant to
any notice or other remedy provided by law or in equity, Landlord may relet the
Demised Premises or Improvements located thereon or any part or parts thereof
for such term or terms and upon such provisions as Landlord, in its sole
judgment, may deem advisable, and Landlord shall have the right to make repairs
and alterations to the Demised Premises and the Improvements located thereon.

 

With or without
terminating this Lease, Landlord may enter upon and take possession of the
Demised Premises and Improvements and expel or remove Tenant and any other
person who may be occupying the Demised Premises and Improvements or any part
thereof, without being liable for prosecution or any claim for any damages or
liability therefor.  Landlord may
thereupon make such alterations and repairs as, in Landlord’s reasonable
discretion, are necessary to relet the Demised Premises and Improvements, and
relet the Demised Premises and Improvements or any part thereof, without notice
to Tenant, for such rent and such use, and for such period of time and subject
to such terms and conditions as Landlord, in its reasonable discretion, may
deem advisable and receive the rent therefor. 
Tenant shall be liable for any and all expenses (including attorneys’
fees, disbursements, actual costs and brokerage fees) incurred by Landlord in
re-entering and repossessing the Demised Premises and Improvements, in making
good any default of Tenant, in painting, altering, repairing or dividing the
Demised Premises and Improvements, in protecting and preserving the Demised
Premises and Improvements by use of security guards and caretakers, and in
reletting the Demised Premises and Improvements.  Tenant shall pay to Landlord, on demand, any
deficiency that may arise by reason of any reletting.  Any suit brought by Landlord to enforce
collection of such difference for any one month shall not prejudice Landlord’s
right to enforce the collection of any difference for any subsequent month in
subsequent separate actions, as said damages shall have been made more easily
ascertainable by successive relettings. 
Landlord shall not be liable for any failure to relet the Demised
Premises and Improvements or any part thereof or for any failure to collect any
rent due upon any such reletting. 
Notwithstanding any such reletting without termination, Landlord may at
any time thereafter elect to terminate this Lease for such prior default.

 

10

 

If Landlord
terminates this Lease pursuant to Section 17.2, Landlord shall be entitled
to recover from Tenant, and Tenant shall pay to Landlord on demand, as and for
liquidated and agreed final damages for Tenant’s default, an amount equal to
the difference between (i) all Minimum Annual Rent and other sums which would
be payable under this Lease from the date of such demand (or, if it is earlier,
the date to which Tenant shall have satisfied in full its obligations under the
preceding paragraph) for what would be the then unexpired Term in the absence of
such termination, and (ii) the fair market rental value of the Demised Premises
and Improvements over the same period (net of all expenses and all vacancy
periods reasonably projected by Landlord to be incurred in connection with the
reletting of the Demised Premises and Improvements), with such differential
discounted at the rate of ten percent (10%) per annum.  Nothing herein shall be construed to affect
or prejudice Landlord’s right to prove, and claim in full, unpaid rent or any
other amounts accrued prior to termination of this Lease.

 

Landlord shall, to
the extent permitted by law, have (in addition to all other rights) a right of
distress for rent as security for all Minimum Annual Rent and any other sums
payable under this Lease.

 

Tenant, on its own
behalf and on behalf of all persons claiming through or under Tenant, including
all creditors, does hereby specifically waive and surrender any and all rights
and privileges, so far as is permitted by law, which Tenant and all such
persons might otherwise have under any present or future law (1) to the service
of any notice to quit or of Landlord’s intention to re-enter or to institute
legal proceedings, which notice may otherwise be required to be given, (2) to
redeem the Demised Premises or Improvements, (3) to re-enter or repossess the
Demised Premises or Improvements, (4) to restore the operation of this Lease,
with respect to any dispossession of Tenant by judgment or warrant of any court
or judge, or any re-entry by Landlord, or any expiration or termination of this
Lease, whether such dispossession, re-entry, expiration or termination shall be
by operation of law or pursuant to the provisions of this lease or (5) which
exempts property from liability for debt or for distress for rent.  The words “dispossession,” “re-enter,”
“re-entry,” “reentered,” “repossess” and “redeem” as used in this Lease shall
not be deemed to be restricted to their technical legal meanings.

 

17.4                           The
term “rent” and “rental” as used in this Section 19 and elsewhere in this
Lease shall be deemed to be and mean Minimum Annual Rent, real property taxes,
late charges, interest, attorneys’ fees and any and all other sums, however
designated, required to be paid by Tenant hereunder, whether payable to
Landlord or third parties.

 

ARTICLE 18

 

Condemnation

 

If the entire
Demised Premises and/or Improvements shall be taken by reason of condemnation
or under eminent domain proceedings, Landlord or Tenant may terminate this
Lease as of the date when possession of the Demised Premises and/or
Improvements is so taken.  If a portion
of the Demised Premises, and/or Improvements shall be taken under eminent
domain or by reason of condemnation and the remainder of the Demised Premises,
and/or Improvements are no longer suitable for Tenant’s business, this Lease,
at Tenant’s option, exercised by notice to Landlord within sixty (60) days of
such taking shall terminate; and any unearned rents and other

 

11

 

charges paid or credited in advance shall be refunded to Tenant.  If this Lease is not so terminated, Tenant
may at its sole cost and expense restore the remaining portions of the Demised
Premises and/or Improvements as Tenant deems necessary or appropriate (subject
to applicable law) and the Minimum Annual Rent shall be reduced proportionally
based on the portion of the Demised Premises so taken.  For purposes of this paragraph (i) a partial
taking shall be deemed to include loss or material impairment of access to and
from the Demised Premises and/or Improvements and (ii) grants or conveyances
made in lieu or anticipation of or under threat of a taking or condemnation
shall be deemed a taking.

 

Both parties shall
pursue their own damage awards with respect to any such taking, provided,
however, that Tenant shall be entitled to the award in connection with any
condemnation insofar as the same represents compensation for the Tenant
Improvements and any separately awardable business damages or moving expenses,
but Tenant shall not be entitled to any portion of Landlord’s award for the
loss or damage to the Demised Premises as a result of the Tenant’s loss of its
leasehold.  Landlord shall be entitled to
the award insofar as same represents compensation for or damage to the Demised
Premises.  Any condemnation award
specifically attributable to the Demised Premises shall be allocated to the
Landlord, and any condemnation award specifically attributable to the Tenant
Improvements shall be allocated to the Tenant.

 

ARTICLE 19

 

Covenant of Title

 

Landlord covenants,
represents and warrants that it has full right and power to execute and perform
this Lease and to grant the estate demised herein and that Tenant, subject to
the terms and conditions of this Lease and upon payment of the rent and
performance of the covenants and agreements hereof shall peaceably and quietly
have, hold and enjoy the Demised Premises and all rights, easements,
appurtenances and privileges belonging or in any way pertaining thereto during
the Lease term without molestation or hindrance of any person claiming by,
through or under Landlord.  Landlord
further covenants, represents and warrants that it has good and marketable
title to the Land, free and clear of any liens, encumbrances, restrictions and
violations (or claims or notices thereof), except as reflected of record as of
the date hereof, or any other such item created after the date hereon that does
not unreasonably interfere with Tenant’s use of the Demised Premises.

 

ARTICLE 20

 

Leasehold Mortgages

 

20.1                           Tenant
shall have the unrestricted right at any time and from time to time to mortgage
Tenant’s interest in the Demised Premises and the Tenant Improvements, subject,
however, to the limitations hereinafter set forth.  Any such mortgage shall be subject and
subordinate to the rights of Landlord hereunder.  A mortgage of the Tenant Improvements and/or
Tenant’s leasehold interest under this Lease is hereinafter referred to as a “Leasehold
Mortgage”, and any party to whom a Leasehold Mortgage is granted is
hereinafter referred to as a “Leasehold Mortgagee”.

 

12

 

20.2                           No
Leasehold Mortgagee shall be entitled to enjoy the rights or benefits mentioned
herein, nor shall the provisions of this Lease pertaining to Leasehold
Mortgages be binding upon Landlord, unless Landlord shall have been given
fifteen (15) days’ prior written notice of the name and address of any
Leasehold Mortgagee together with the address for all notices to which the
Leasehold Mortgagee shall be entitled.

 

20.3                           The
Leasehold Mortgage shall contain an acknowledgement by the Leasehold Mortgagee
that the Leasehold Mortgage shall be subject to all of the terms of this
Lease.  In no event shall such Leasehold
Mortgage affect Landlord’s fee interest in the Demised Premises or Improvements
or its reversionary interest in this Lease.

 

20.4                           With
respect to any permitted Leasehold Mortgage, Landlord and Tenant agree as
follows:

 

(a)                                  When
giving notice to Tenant with respect to any default hereunder, Landlord shall
also serve a copy of each such notice upon any Leasehold Mortgagee who shall
have given Landlord a written notice specifying its name and address.  No such notice shall be effective unless and
until served on any Leasehold Mortgagee as herein provided.  In the event Tenant shall default in the
performance of any of the terms, covenants, agreements and conditions of this
Lease on Tenant’s part to be performed, any Leasehold Mortgagee shall have the
right, within the grace period available to Tenant for curing such default as extended
below, to cure or make good such default or to cause the same to be cured or
made good whether the same consists of the failure to pay rent or the failure
to perform any other obligation, and Landlord shall accept such performances on
the part of any Leasehold Mortgagee as though the same had been done or
performed by Tenant.

 

(b)                                 In
the case of a default by Tenant in the payment of money, Landlord will take no
action to effect a termination of this Lease by reason thereof unless such
default has continued beyond thirty (30) days after the fifteen (15)-day grace
period for Tenant to cure such payment, it being the intent hereof and the
understanding of the parties that any Leasehold Mortgagee shall be allowed not
less than thirty (30) days in addition to the fifteen (15)-day grace period
granted to Tenant to cure any default of Tenant in the payment of rent or in
the making of any other monetary payment required under the terms of this
Lease.

 

(c)                                  In
the cases of any non-monetary default by Tenant, Landlord will take no action
to effect a termination of this Lease by reason thereof unless such default has
continued beyond the grace period available to Tenant for curing such default,
and then only after Landlord shall have given to any Leasehold Mortgagee thirty
(30) days after the expiration of Tenant’s thirty-day grace period for curing
such default within which either:

 

(i)                                     to
commence and diligently proceed to cure such default, if such default is
susceptible of being cured by the Leasehold Mortgagee without obtaining
possession of the Demised Premises and Improvements;

 

(ii)                                  to
commence and diligently proceed to obtain possession of the Demised Premises
and Improvements (including possession by a

 

13

 

receiver) and to
cure such default in the case of a default which is susceptible of being cured
when the Leasehold Mortgagee has obtained possession thereof; or

 

(iii)                               to
institute foreclosure proceedings and thereafter to complete such foreclosure
proceedings or otherwise acquire Tenant’s interest under this Lease with
reasonable and continuous diligence.  A
Leasehold Mortgagee shall not be required to continue such foreclosure
proceedings if the default which prompted the foreclosure of such has been
cured.

 

(d)                                 During
the period that a Leasehold Mortgagee shall be in possession of the Demised
Premises or Improvements or during the pendency of any foreclosure proceedings
instituted by a Leasehold Mortgagee, the Leasehold Mortgagee shall pay or cause
to be paid the Minimum Rent specified in Section 3 and all other rent and
charges of whatsoever nature payable by Tenant hereunder which have accrued and
are unpaid and which thereafter accrue during said period.  Following the acquisition of Tenant’s
leasehold estate by the Leasehold Mortgagee, either as a result of foreclosure
or acceptance of an assignment in lieu of foreclosure, the Leasehold Mortgagee
shall, as promptly as possible commence the cure of all defaults hereunder to
be cured and thereafter diligently prosecute such cure to completion.

 

(e)                                  In
the event that this Lease is terminated by Landlord on account of any default,
Landlord shall give prompt written notice thereof to each Leasehold
Mortgagee.  Landlord, within thirty (30)
days after receiving a written request therefor, which shall be given by any
Leasehold Mortgagee within thirty (30) days after such termination, will
execute and deliver a new lease of the Demised Premises and Improvements to the
Leasehold Mortgagee, for the remainder of the term of this Lease, containing
the same covenants, agreements, terms, provisions and limitations as are
contained herein, provided (i) that the Leasehold Mortgagee shall pay to
Landlord, simultaneously with the delivery of such new lease all expenses including,
without limitation, reasonable attorneys’ fees and disbursements and court
costs, incurred by Landlord in connection with the default by Tenant, the
termination of this Lease and the preparation of the new lease, and (ii) the
Leasehold Mortgagee agrees to and does commence and diligently proceed to cure
all non-monetary defaults existing under this Lease and susceptible of being
cured by Leasehold Mortgagee.

 

(f)                                    Nothing
herein shall preclude Landlord from exercising any of Landlord’s rights or
remedies with respect to any default by Tenant during any period of any such
forbearance, subject to the rights of any Leasehold Mortgagee as herein
provided.

 

(g)                                 All
notices by Landlord to Leasehold Mortgagees shall be given in accordance with
Article 28 herein, addressed to the Leasehold Mortgagee at the address
last specified to Landlord by the Leasehold Mortgagee.

 

14

 

ARTICLE 21

 

Fee
Mortgages

 

This Lease shall be made
subject and subordinate to the lien of any and all mortgages (which term
“mortgages” shall include deeds of trust and similar security instruments and
any renewals, extensions, modifications, recastings or refinancings of any such
mortgage or other instrument) which may now or hereafter encumber or otherwise
affect Landlord’s interest in the Demised Premises and/or Improvements provided
that such mortgage expressly provides that so long as Tenant has not committed
an Event of Default hereunder which remains uncured beyond any applicable cure
period, the rights and interests of the mortgagee thereunder are subject to the
rights and interests of Tenant hereunder and any Leasehold Mortgagee under any
Leasehold Mortgage then or thereafter existing. 
Notwithstanding the foregoing, upon written request by Landlord, Tenant
shall execute and deliver an agreement in form satisfactory to Landlord (and
reasonably satisfactory to Tenant), subordinating this Lease to any mortgage
encumbering the Demised Premises and/or Improvements, provided, however, such
subordination shall be upon the express condition that the validity of this
Lease shall be recognized by such mortgagee, and that, notwithstanding any
default by Landlord with respect to the mortgage, or any foreclosure or
termination thereof, Tenant’s possession of the Demised Premises and/or
Improvements and rights under this Lease and Tenant’s right to possession
hereunder shall have been terminated in accordance with the provisions of this
Lease.  In the event the mortgagee under
any such mortgage shall require this Lease to be superior and paramount to such
mortgage, Tenant agrees to execute, acknowledge and deliver, as directed by
Landlord, any instruments required for such purpose.

 

Tenant agrees that, if
any proceedings are brought for the foreclosure of any such mortgage, Tenant,
if requested to do so by the purchaser at the foreclosure sale, shall recognize
the purchaser as Landlord under this Lease and shall make all payments required
hereunder to such new Landlord in the manner provided for in this Lease and
subject to the terms of this Lease. 
Tenant waives the provisions of any law or regulation, now or hereafter
in effect, which may give or purport to give Tenant any right to terminate or
otherwise adversely affect this Lease and the obligations of Tenant hereunder
in the event that any such foreclosure or other proceeding is prosecuted or
completed.

 

Tenant agrees to give any
of Landlord’s mortgagees and/or trust deed holders, by certified mail, return
receipt requested, a copy of any notice of default served upon Landlord,
provided that prior to such notice Tenant has been notified in writing of the
address of such mortgagees and/or trust deed holders.

 

ARTICLE 22

 

Force
Majeure

 

Any prevention, delay or
stoppage due to strikes, lockouts, labor disputes, acts of God, inability to
obtain labor or materials or reasonable substitutes therefor, governmental
restrictions, governmental regulations, governmental controls, judicial orders,
enemy or hostile governmental action, civil commotion, fire or other casualty,
and other causes beyond the

 

15

 

reasonable control
of the party obligated to perform (collectively, an “Event of Force Majeure”),
shall excuse the performance by such party for a period equal to any such
prevention, delay or stoppage, except the obligations imposed with regard to
Minimum Annual Rent and other charges to be paid by Tenant pursuant to this
Lease, unless expressly provided to the contrary in this Lease.  It is expressly agreed that any other time
limit provision contained in this Lease shall be extended for the same period
of time lost by causes hereinabove set forth.

 

ARTICLE 23

 

Tax
Treatment

 

The respective owners of
the various Improvements shall have the benefit of all depreciation, depletion,
amortization, deductions or allowances related to the Improvements now or
hereafter located on the Demised Premises or Improvements, under the Internal
Revenue Code as amended and under any income or similar or other tax statute
enacted by any applicable local, state, county, federal or other governmental
or taxing authority.

 

ARTICLE 24

 

Indemnification

 

24.1         Hold
Harmless/Indemnity

 

.  Tenant agrees to defend, indemnify and hold
harmless Landlord and its authorized representatives from all damages, except
those damages which result directly from the willful misconduct or gross
negligence of Landlord or its authorized representatives, arising from or out
of any occurrence in, upon, at or from the Demised Premises or Improvements
located thereon, and the occupancy or use by Tenant of the Demised Premises and
the Improvements.

 

24.2         Tenant
shall store its property in or on the Demised Premises or Improvements, and
shall occupy the Demised Premises or Improvements, at its own risk.

 

24.3         Subject
to the provisions hereof, Tenant releases Landlord to the fullest extent
permitted by law, from all claims of every kind resulting in loss of life,
personal or bodily injury or property damage.

 

24.4         Landlord
shall not be responsible or liable at any time for any damage (i) to Tenant’s
merchandise, equipment, Tenant’s trade fixtures or other personal property of
Tenant or (ii) to Tenant’s business, unless such damage shall result directly
from the willful misconduct or gross negligence of Landlord or its authorized
representatives.

 

24.5         Landlord
shall not be responsible or liable to Tenant or to those claiming by, through
or under Tenant for any damage to property or injury to persons that may be
occasioned by or through the acts or omissions of third parties, including,
without limitation, other tenants and their authorized representatives and
customers, invitees and guests.

 

24.6         Tenant
shall give prompt notice to Landlord in case of material fire or accidents in
or around the Demised Premises or Improvements located thereon.

 

16

 

24.7         In
case Landlord is made a party to any litigation commenced by or against Tenant
and related to the Demised Premises, the Improvements or this Lease against
which Landlord is to be protected by Tenant hereunder, then Tenant, upon
receipt of timely notice from Landlord, shall assume the defense of any such
matters with its counsel (who shall be reasonably satisfactory to Landlord) and
shall indemnify, defend and hold Landlord harmless therefrom and shall pay all
costs, expenses, and Tenants’ attorneys’ fees as a result thereof Landlord may
participate in the defense of such matters with its separate counsel at its
cost.

 

24.8         Notwithstanding
any provision to the contrary contained herein, Tenant shall look solely to the
estate and property of Landlord in and to the Demised Premises in the event of
any claim against Landlord arising out of or in connection with this Lease, the
relationship of Landlord and Tenant, or Tenant’s use of the Demised Premises,
and Tenant agrees that the liability of Landlord arising out of or in
connection with this Lease, the relationship of Landlord and Tenant, or
Tenant’s use of the Demised Premises, shall be limited to such estate and
property of Landlord in and to the Demised Premises.  No properties or assets of Landlord other
than the estate and property of Landlord in and to the Demised Premises and no
property owned by any officer, director, member, manager, shareholder,
representative, partner or employee of Landlord shall be subject to levy,
execution or other enforcement procedures for the satisfaction of any judgment
(or other judicial process) or for the satisfaction of any other remedy of
Tenant arising out of or in connection with this Lease, the relationship of
Landlord and Tenant or Tenant’s use of the Demised Premises.

 

The indemnifications set
forth in this Article 24 shall survive the expiration, cancellation or
termination of this Lease.

 

ARTICLE 25

 

Hazardous
Material

 

25.1         Tenant
acknowledges and agrees that it is relying solely on independent environmental
studies concerning the Demised Premises or Improvements and on no
representations or warranties from Landlord.

 

25.2         Tenant
warrants and agrees that it will not use, maintain, generate, store, treat or
dispose of any Hazardous Materials in or on the Demised Premises and the
Improvements in violation of applicable governmental regulations.  Tenant hereby indemnifies, defends and holds
harmless Landlord from and against any loss, liability, claim or expense,
including, without limitation, cleanup, engineering and reasonable attorneys’
fees and expenses that Landlord may incur by reason of any investigation or
claim of any governmental agency or third party for any actions taken by Tenant,
its agents, licensees, contractors or employees on the Demised Premises and the
Improvements during the term of this Lease. 
Tenant’s indemnity to Landlord under this Section 25.2 shall survive the
cancellation or termination of this Lease.

 

25.3         For
purposes of this Lease, the term “Hazardous Materials” shall mean any
toxic or hazardous waste or substances (including petroleum products) which are
regulated by applicable state or federal environmental laws or regulations.

 

17

 

ARTICLE 26

 

Ownership of Improvement/

Conditions of Demised Premises at Termination

 

26.1         Title
to the Tenant Improvements shall, during the Term of this Lease, be and remain
vested in Tenant; provided, that Tenant’s rights with respect to the Tenant
Improvements are subject to the terms and limitations of this Lease.

 

26.2         Tenant
agrees that on the expiration or other termination of this Lease, the Tenant
Improvements and the Demised Premises shall become (or continue to be) the
property of Landlord, free from any Leasehold Mortgage, encumbrance, lien or
claim, without any further compensation therefor from Landlord to Tenant or any
Leasehold Mortgagee, encumbrancer, lienholder or other person.  On the expiration or other termination of
this Lease, Tenant shall peaceably and quietly leave and surrender the Demised
Premises and the Improvements thereon to Landlord, in such condition as the
same may be, including wear and tear and obsolescence.  Tenant shall have the right to remove unattached
equipment, furniture, merchandise, Tenant’s trade fixtures and any signs
installed by Tenant (pursuant to Article 11 hereof).  Upon demand, Tenant shall pay for and repair
any material damage to the Demised Premises and Tenant Improvements occasioned
by the removal of said equipment, furniture, merchandise, Tenant’s trade
fixtures and signs.  Any of Tenant’s
equipment, furniture, merchandise, trade fixtures or signs not removed prior to
the expiration of the Term shall be deemed abandoned and Landlord shall be
entitled to keep, use, sell or dispose of the same without liability to Tenant.

 

ARTICLE 27

 

Holding
Over

 

In the absence of any
written agreement to the contrary, if Tenant should remain in occupancy of the
Demised Premises or Improvements after the expiration of the Lease term, it
shall so remain as a tenant at sufferance at triple the rent applicable just
prior to the expiration of the Term, but otherwise subject to all provisions of
this Lease.

 

ARTICLE 28

 

Notices

 

Notices required under
this Lease shall be in writing and deemed to be properly served on deposit
thereof as set forth below if sent by recognized overnight courier or certified
or registered mail to the following:

 

If to
Landlord:

 

1-4 Land Holding Company Limited

Attention:  Donald W. Wallace

6130 Lazy Days Boulevard

Seffner, Florida  33584

 

18

 

Telecopier
No.:  (813) 246-4999

Telephone No.:  (813) 246-4744

 

With copy to:

 

Bruce Jay Colan

Holland & Knight LLP

701 Brickell Avenue, Suite 300

Miami, FL  33131

 

If to Tenant:

 

Lazy Days’ R V. Center, Inc.

6130 Lazy Days Boulevard

Seffner, Florida  33584

Telecopier No.:  (813) 246-4999

Telephone No.:  (8134) 246-4744

Attn:  Donald W. Wallace

 

With a copy
to:

 

Alliance Holdings, Inc.

723 Electronic Drive, Suite 300

Horsham, Pennsylvania  19044

Telecopier No.:  (215) 706-0877

Telephone No.:  (215) 706-0873

Attn:  David B. Fenkell, President

 

or to any
subsequent address which Landlord and/or Tenant shall designate for such
purpose.  The date of notice shall be the
date on which such notice is deposited in a post office of the United States
Postal Service or with such recognized overnight courier.

 

ARTICLE 29

 

Partial
Invalidity

 

If any term, covenant or
condition of this Lease or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder
of this Lease or the application of such term, covenant or condition to persons
or circumstances other than those as to which it is held invalid or unenforceable
shall not be affected thereby and each term, covenant or condition of this
Lease shall be valid and be enforced to the fullest extent permitted by law.

 

19

 

ARTICLE 30

 

Entire
Agreement - Applicable Law

 

This Lease, the exhibits
and amendments or addendums, if any, attached hereto and forming a part hereof,
set forth all covenants, promises, agreements, conditions, provisions and
understandings between Landlord and Tenant concerning the Demised Premises or
Improvements and there are no covenants, promises, agreements, conditions,
provisions or understandings, either oral or written, between them other than
are herein set forth.  No alteration,
amendment, change or addition to this Lease shall be binding upon Landlord or
Tenant unless reduced to writing and signed by each party.  This Lease shall be governed by and construed
in accordance with the laws of the State of Florida.

 

ARTICLE 31

 

Successors
and Assigns

 

The conditions, covenants
and agreements contained in this Lease, shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns. 
All covenants and agreements of this Lease shall run with the land.

 

ARTICLE 32

 

Memorandum
of Lease

 

The parties hereto have,
simultaneously with the execution and delivery of this Lease, executed and
delivered a Memorandum of Lease which Landlord shall, at its sole expense,
cause to be recorded within sixty (60) days following delivery of this Lease
and returned to Tenant by Landlord within sixty (60) days thereafter.

 

ARTICLE 33

 

Right
of First Offer/Right of First Refusal/Option to Purchase

 

33.1         Provided
that this Lease has not been assigned or sublet other than pursuant to Section
13.2 and provided Tenant is not then in default under this Lease, if at any
time during the term of this Lease, or any extension thereof, the Landlord
desires to offer for sale any portion of the Demised Premises or Improvements,
then Landlord shall first offer such property to Tenant.  Landlord’s offer shall contain the purchase
price and other principal terms upon which Landlord is willing to sell such
property.  For a period of thirty (30)
days from the date that it receives Landlord’s offer, Tenant shall have the
right to notify Landlord that Tenant desires to purchase the property being
offered or Tenant may respond by offering to purchase such property as offered
at a certain price specified by Tenant in such notice (“Tenant’s First Offer
Counterprice”).  If Tenant notifies
Landlord that it does not desire to purchase such property, or fails to provide
an affirmative notice that it desires to purchase the property on the terms
offered, then Landlord may proceed with the marketing of such property, and
Tenant shall

 

20

 

have no further rights of first offer hereunder,
provided that (i) Landlord sells such property for greater than the Tenant’s
First Offer Counterprice, if any, (ii) Landlord enters into a definitive
agreement (subject to appropriate contingencies) within one hundred twenty
(120) days after the date upon which Tenant notifies Landlord that it does not
desire to purchase the property on the terms offered, or, if no such notice is
given, the expiration of the 30-day period described above, and (iii) Landlord
consummates the sale of such property for a price equal to or greater than the
Tenant’s First Offer Counterprice within two hundred and ten (210) days after
the date upon which Tenant notifies Landlord that it does not desire to
purchase the property on the terms offered, and if no such notice is given, the
expiration of the thirty-(30) day period described above.  If the Landlord does not consummate the sale
of such property within such 210-day period, or Landlord desires to sell any
such property for an amount that is less than Tenant’s First Offer
Counterprice, if any, then Landlord shall again offer such property to Tenant
prior to consummating any sale, and the provisions of this Section 33.1 shall
apply as if Landlord had not given the initial notice to Tenant hereunder.  If within such thirty-(30) day period Tenant
notifies Landlord that it desires to purchase the property upon the terms
offered, then the closing of the purchase and sale of such property shall occur
within ninety (90) days of the date of Tenant’s notice.  If Landlord so elects by written notice to
Tenant within such two hundred and ten (210) day period, Landlord may accept
Tenant’s First Offer Counterprice, in which case, Tenant shall purchase the
offered property for the First Offer Counterprice and otherwise on the offered
terms, the closing of which shall occur within ninety (90) days after Landlord
notifies Tenant of its election to accept Tenant’s First Offer Counterprice.  Notwithstanding anything herein to the
contrary, Tenant’s right of first refusal contained in Section 33.2 and
Tenant’s purchase option contained in Section 33.3 shall have no application as
to any transactions consummated by Landlord as to which Tenant has waived its
rights pursuant to this Section, and Tenant shall not be entitled to exercise
its purchase option contained in Section 33.3 during the pendency of any
transaction consummated pursuant to this Section.  Tenant’s election to not set Tenant’s First
Offer Counterprice in accordance with this Section shall be deemed a waiver of
Tenant’s right of first offer as to any transactions consummated by Landlord
within the two hundred ten (210) day period described above, regardless of the
price or terms upon which such sale is consummated.

 

33.2         Provided
that this Lease has not been assigned or sublet other than pursuant to Section
13.2 and provided Tenant is not then in default under this Lease, if at any
time during the term of this Lease, or any extension thereof, the Landlord
receives an offer to purchase any portion of the Demised Premises or
Improvements, that Landlord desires to accept, then Landlord shall provide
written notice of such offer to Tenant. 
Landlord’s notice shall include a copy of the offer received by
Landlord.  For a period of thirty (30)
days from the date that it receives Landlord’s notice, Tenant shall have the
right to notify Landlord that Tenant desires to purchase the property for which
Landlord received an offer upon the same terms and conditions as are set forth
in the offer received by Landlord or Tenant may respond by offering to purchase
such property as offered at a certain price specified in such notice (“Tenant’s
Right of First Refusal Counterprice”). 
If Tenant notifies Landlord that it does not desire to purchase such
property on the offered terms, or fails to provide an affirmative notice that
it desires to purchase the property described in Landlord’s notice on the
offered terms, then Landlord may proceed with the sale of the property,
provided that (i) if the terms of the sale are altered such that the purchase
price is reduced to an amount that is less than 95% of the price offered to
Tenant by Landlord, or (ii) the sale is not consummated within one hundred eighty
(180) days of the date upon which Tenant notifies Landlord that it does not
desire to purchase the property or interest

 

21

 

described in Landlord’s notice, then Landlord shall
again offer such property to Tenant prior to consummating any sale and the
provisions of this Section 33.2 shall apply as if Landlord had not given the
initial notice to Tenant hereunder.  If
within such thirty (30) day period Tenant notifies Landlord that it desires to
purchase the property upon the terms set forth in Landlord’s notice, then the
closing of the purchase and sale of such property shall occur within ninety
(90) days of the date of Tenant’s notice. 
Landlord may elect by written notice to Tenant within the one hundred
and eighty-(180) day period commencing upon the date of Tenant’s notice to
Landlord of Tenant’s Right of First Refusal Counterprice to accept Tenant’s
Right of First Refusal Counterprice, in which event Tenant shall purchase the
offered property for the Right of First Refusal Counterprice and otherwise on
the offered terms, the closing of which purchase shall occur within ninety (90)
days after Landlord notifies Tenant of its election to accept Tenant’s Right of
First Refusal Counterprice. 
Notwithstanding anything herein to the contrary, Tenant’s right of first
offer contained in Section 33.1 and Tenant’s purchase option contained in
Section 33.3 shall have no application as to any transactions consummated by
Landlord as to which Tenant has waived its rights pursuant to this Section, and
Tenant shall not be entitled to exercise its purchase option contained in
Section 33.3 during the pendency of any transaction consummated pursuant to
this Section.  Tenant’s election to not
set Tenant’s Right of First Refusal Counterprice in accordance with this
Section shall be deemed a waiver of Tenant’s right of first refusal as to any
transactions consummated by Landlord within the 180-day period described above,
regardless of the price or terms upon which such sale is consummated.

 

33.3         Provided
that this Lease has not been assigned or sublet other than pursuant to Section
13.2 and provided that Tenant is not then in default under this Lease, Tenant
shall have the option, exercisable by written notice to the Landlord given at
any time during the term of this Lease, to purchase the Demised Premises and
Improvements on the following terms.  The
purchase price to be paid by Tenant to Landlord at closing pursuant to this
option shall be Forty Million Dollars ($40,000,000.00) if the option is
exercised and the sale is closed within the initial five lease years of the
term, and thereafter the purchase price shall be ten (10) times the Minimum
Annual Rent, including the cost of living adjustment provided for in Article 5,
for the Lease Year in which the sale is closed as determined by the date on
which the purchase price is paid and the conveyance of the Demised Premises and
Improvements occurs.  In the event Tenant
exercises such option, Tenant agrees to use its best efforts to cooperate with
Landlord to cause such purchase and sale of the Demised Premises to be
structured in the manner determined by Landlord and its counsel to reduce, to
the maximum extent possible, Landlord’s resulting income tax liability and
related expenses.  Except as expressly
provided herein to the contrary, the terms of such purchase shall be in
accordance with customary real estate transactions in Hillsborough County,
Florida.  The closing of the purchase and
sale of the Demised Premises and Improvements shall occur within ninety (90)
days after an effective exercise of this purchase option.  The closing shall take place at the Demised
Premises and Improvements unless otherwise agreed by the parties.  The Demised Premises and Improvements shall
be transferred by special warranty deed subject only to such easements,
covenants, restrictions and other matters as are of record on the date thereof,
are created by Tenant, or are approved by Tenant in writing.  Landlord shall have the obligation to cause
any mortgages of record to be released on or before the date of closing, and
the Demised Premises and Improvements shall be transferred free and clear of
any mortgages.  The Tenant shall pay any
documentary stamp or transfer taxes payable in connection with the transfer of
the Demised Premises and Improvements. 
Tenant shall further pay the cost of any title insurance or survey
desired by Tenant, the cost of recording

 

22

 

the deed transferring the Demised Premises and
Improvements, and any closing or escrow costs. 
Real estate taxes and assessments shall not be prorated, but rather
shall be the sole obligation of the Tenant for periods before and after the
date of transfer.

 

33.4         In
the event of any sale of any portion of the Demised Premises and Improvements
from Landlord to Tenant whether pursuant to Section 33.1, 33.2, 33.3 or
otherwise, Tenant agrees to cooperate with Landlord, upon Landlord’s request,
to structure the transaction in such a manner as to accomplish a like-kind
exchange under Section 1031 of the Internal Revenue Code (or any pertinent
successor to such Section of the Internal Revenue Code), provided that Tenant
shall not be obligated to incur any material additional expense in connection
with such cooperation.

 

33.5         Notwithstanding
anything to the contrary contained in this Lease, Tenant’s rights under Section
33.3 shall be deemed waived and of no further force or effect as to any portion
of the Demised Premises and Improvements which Landlord sells or transfers
without Tenant exercising its rights or options to purchase the subject
property pursuant to Section 33.1, 33.2 or 33.3, it being the intent that
Landlord’s successor to any portion of the Demised Premises and Improvements so
conveyed shall not be subject to Tenant’s purchase option contained in Section
33.3 of this Article.

 

ARTICLE 34

 

Estoppel
Certificates

 

Within twenty (20) days
after request by either party, the other party shall execute and deliver to the
requesting party a written certificate as to the status of this Lease, any
existing defaults, the status of the payments and performance of the parties
required hereunder and such other information that may be reasonably requested.

 

ARTICLE 35

 

Dispute
Resolution

 

Landlord and Tenant shall
in good faith first attempt to resolve any controversy, dispute or disagreement
arising out of or relating to this Lease by face-to-face negotiations by a
person designated by board of directors of Tenant and the person designated by
manager of Landlord.  If any such
controversy, dispute or disagreement is not resolved within thirty (30) days
after such negotiations begin, that controversy, dispute or disagreement shall
be submitted to binding arbitration to be held in Tampa, Florida under the
Commercial Arbitration Rules of the American Arbitration Association.

 

The parties shall attempt
in good faith to agree upon an arbitrator who is knowledgeable in commercial
real estate leasing matters.   If the
parties are unable to agree upon an arbitrator within ten (10) days after the
deadline in the first paragraph of this Article 35 has passed, either party may
file a demand for arbitration with the American Arbitration Association and
arbitration shall proceed in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. 
The decision of the arbitrator shall include findings of fact

 

23

 

and conclusions of
law.  The decision of the arbitrator
shall be final and binding as to each party. 
The costs of arbitration shall be divided equally between Landlord and
Tenant.  The party against whom the award
is rendered shall pay any monetary award and/or comply with the order of the
arbitrator within sixty (60) days of the entry of judgment on the award.  The nonprevailing party shall be liable for
all attorneys’ fees and costs incurred by the prevailing party should the
nonprevailing party fail to comply with the above (sixty) 60-day deadline and
it becomes necessary for the prevailing party to bring court action to collect
any award rendered in its favor or to seek other court enforcement of the
arbitrator’s order.  Notwithstanding the
foregoing, disputes concerning the payment of rent shall not be subject to
arbitration.

 

ARTICLE 36

 

Miscellaneous

 

36.1         Except
and until as may otherwise be directed by Landlord, Tenant shall maintain Karen
Lundquist, Ron Corbett, Jack Wilson and John Fernandez (and any of their
successors as designed by Landlord) on Tenant’s payroll, continuing to pay such
parties their compensation and other fringes of employment by Tenant during the
term.  Tenant shall also continue to
perform the bookkeeping services for Donald W. Wallace as currently performed
by Tenant’s personnel.  Tenant shall be
entitled to deduct from the monthly installments of Minimum Annual Rent all
costs of such employment incurred and paid by Tenant on a monthly basis.

 

36.2         All
rights and remedies given herein and/or by law or in equity to Landlord are
separate, distinct and cumulative, and no one of them, whether exercised by
landlord or not, shall be deemed to be in exclusion of any of the others.  No failure of Landlord to exercise any power
given Landlord hereunder, and no custom or practice of the parties at variance
with the terms hereof shall constitute a waiver of Landlord’s right to demand
exact compliance with the terms hereof. 
Receipt by Landlord of any installment of rent or other sums payable
hereunder with knowledge of the breach of any provision hereof, or acceptance
by landlord of partial payments or partial performance, shall not constitute a
waiver of any such breach.  No waiver by
Landlord of any provision hereof shall be deemed to have been made unless made
in writing, and a waiver so given on one occasion shall not be deemed a waiver
on any subsequent occasion.

 

36.3         Landlord
and Tenant each hereby waives all rights to a trial by jury in any claim,
action, proceeding or counterclaim arising out of or in any way connected with
this Lease.

 

36.4         TIME
IS OF THE ESSENCE OF THIS LEASE.

 

36.5         Landlord
and Tenant each represent that they had no dealings with any real estate
broker, finder or other person with respect to this Lease in any manner.  Each party agrees to indemnify, defend and
hold harmless the other against and from any claim or demand for any brokerage
commission or other fees, and all costs, claims, expenses and liabilities in
connection therewith (including, without limitation, attorneys’ fees,
disbursements and actual costs), arising out of any breach of the foregoing representation.

 

24

 

36.6         Subject
to the arbitration obligations contained herein, in the event suit shall be
brought by either party against the other to enforce any of the provisions of
this Lease, the prevailing party in any such action shall be entitled to
recover from the other party all of its expenses incurred in connection with
such action, including reasonable attorneys’ fees, disbursements and actual
costs.

 

36.7         Landlord
may enter the Demised Premises or Improvements at reasonable hours to exhibit
the same to prospective purchasers, mortgagees or tenants, to inspect the
Demised Premises or Improvements to verify that Tenant is complying with all
its obligations hereunder, to make repairs, alterations or improvements to the
Demised Premises or Improvements (without obligation to perform any of the
same), and to post such notices as Landlord may reasonably desire in order to
protect its rights.

 

36.8         Landlord
hereby assigns to Tenant any and all rights that Landlord has in and to
“Percentage Rent” which is 3% of “Net Merchandise Sales” payable (or as
otherwise calculated) pursuant to that certain Lease Agreement between Landlord
and CWI, Inc.  and dated as of January 4,
1996 (the “Camping World Lease”).  Landlord
further agrees (i) to cooperate with Tenant, at no cost to Landlord, in the
collection of any such Percentage Rent, and (ii) that Landlord shall not agree
to any modifications of the Camping World Lease to the extent that such
modifications would adversely affect the Percentage Rent payable thereunder
without the prior written consent of the Tenant, such consent not to be
unreasonably withheld.

 

36.9         Reference
is made to that certain Credit Agreement dated as of July 15, 1999 (the “Credit
Agreement”) among Tenant and Newcourt Commercial Finance Corporation and
certain other lenders named therein (collectively together with their
successors and assigns, the “Lenders”) providing for the agreement of the
Lenders to purchase the notes of, and otherwise make loans to, Tenant in an
aggregate principal amount of $110,000,000. 
Landlord agrees that, in the event of a bankruptcy reorganization or
similar proceeding in respect of the Tenant, and in the event that under Section
365 of the Bankruptcy Code the Tenant shall reject this Lease, any and all
unsecured claims resulting solely from the Lease rejection (not including
Landlord’s administrative claims for post-petition rents or other post-petition
amounts due Landlord, and not including the Landlord’s claims that accrue if
Tenant assumes the Lease) will be, and the same are hereby, subordinated and
junior to any and all claims the Lenders may have against the Tenant under the
Credit Agreement in such bankruptcy proceeding. 
The Lenders shall be third party beneficiaries of the provisions of this
Section 36.9.

 

25

 

Exhibit A

 

PARCEL 1:

 

A portion of
the Northeast 1/4 of Section 33, Township 28 South, Range 20 East, and a
portion of the Southeast 1/4 of the Northwest 1/4 of Section 33, Township 28
South, Range 20 East, Hillsborough County, Florida, being further described as
follows:

 

Commence at
the Northeast corner of Section 33, Township 28 South, Range 20 East, and run
along the North boundary of the Northeast 1/4 of Section 33, North 89°55’05”
West, 662.41 feet; thence South 0°17’21” East, 33.00 feet to the Point of
Beginning; thence from said Point of Beginning the following forty-five (45)
courses; 1) South 00°17’21” East, 274.28 feet; 2) South 89°55’07” East, 608.08
feet; 3) South 00°08’04” East, 50.00 feet; 4) North 89°55’07” West, 607.94
feet; 5) South 00°17’21” East, 209.67 feet; 6) South 51°42’23” East, 579.58
feet; 7) South 41 °37’52” West, 526.94 feet; 8) North 89°59’17” East, 66.99
feet; 9) South 41°38’05” West, 390.19 feet to a point of curve; 10) along the
arc of a curve to the right concave to the Northwest radius 380.00 feet, delta
002°34’59”, arc 17.13 feet, chord bearing South 42°55’35” West, 17.13 feet; 11)
leaving said curve South 77°050’15” West, 424.19 feet; 12) South 72°07’36”
West, 100.85 feet; 13) South 69°18’22” West, 101.12 feet; 14) South 77°50’14”
West, 200.00 feet; 15) North 86°38’04” West, 207.12 feet; 16) South n050’14”
West, 349.95 feet; 17) South 63°48’07” West, 103.09 feet; 18) South 77°50’14”
West, 250.03 feet; 19) South 69°18’23” West, 101.12 feet; 20) South 77°50’14”
West, 187.21 feet; 21) North 00°14’15” West, 492.57 feet; 22) North 89°52’26”
East, 119.74 feet; 23) North 04°54’23” East, 497.49 feet; 24) South 67°02’44”
East, 108.74 feet; 25) North 00°24’05” West, 113.74 feet; 26) North 00°14’15”
West, 757.02 feet; 27) South 89°55’05” East, 92.79 feet; 28) North 00°14’15”
West, 210.00 feet; 29) South 89°55’05” East, 360.78 feet; 30) South 00°13’43”
East, 400.00 feet; 31) South 89°55’05” East, 125.00 feet; 32) South 00°13’43”
East, 100.00 feet; 33) South 89°55’05” East, 300.00 feet; 34) North 00°13’43”
West, 100.00 feet; 35) North 89°55’05” West, 100.00 feet; 36) North 00°13’43”
West, 204.00 feet; 37) South 89°55’05” East, 3.00 feet; 38) North 00°13’43”
West, 36.00 feet; 39) North 89°55’05” West, 3.00 feet; 40) North 00°13’43”
West, 160.00 feet; 41) South 89°55’05” East, 364.02 feet; 42) South 00°13’58”
East, 297.27 feet; 43) South 89°56’29” East, 363.40 feet; 44) North 00°13’58”
West, 297.12 feet; 45) South 89°55’05” East, 298.97 feet to the aforementioned
Point of Beginning.

 

LESS THE
FOLLOWING THREE PARCELS:

 

PARCEL A:  (CRACKER BARREL PARCEL):

 

A parcel of
land in the Northeast 1/4 of Section 33, Township 28 South, Range 20 East, Hillsborough
County, Florida, described as follows:

 

Commence at
the Northeast comer of said Section 33, Hillsborough County, Florida; thence
run along the East boundary of the Northeast 1/4 of said Section 33, South
00°14’14” East, a distance of 1318.90 feet to the North boundary of the
Southeast 1/4 of the Northeast 1/4 of said Section 33; thence run along the
said North boundary, South 89°59’17” West, a distance of 609.05 feet to the
Point of Beginning; thence from said Point of Beginning, departing said North
boundary of the Southeast 1/4 of the Northeast 1/4 of Section 33, run the
following six (6) courses: 1) along

 

1

 

the arc or a
curve to the left, concave to the Southeast, radius 180.00 feet, delta 021°22’42”,
arc 67.16 feet, chord bearing South 20°08’54” West, 66 n feet to a point of
reverse curve; 2) along the arc or a curve to the right, concave to the
Northwest, radius 144.00 feet, delta 032°10’15”, arc 80.85 feet, chord bearing
South 25°32’41” West, 79.80 feet; 3) leaving said curve, South 41”38’05” West,
165.17 feet to a point on a curve; 4) along the arc of a curve to the right,
concave to the Northwest radius 39.00 feet, delta 036°12’26”, arc 24.65 feet,
chord bearing South 59°44’02” West, 24.24 feet to a point of tangency; 5) South
n050’15” West, 396.89 feet; 6) North 00°00’00” East, 353.84 feet to a point on
the said North boundary of the Southeast 1/4 of the Northeast 1/4 of Section
33; thence run along said North boundary North 89°59’17” East, a distance of
576.06 feet to the aforementioned Point of Beginning.

 

ALSO LESS AND
EXCEPT that part conveyed to CFJ Properties, a Utah partnership by Warranty
Deed recorded in Official Records Book 8982, page 1278, and by Quit Claim Deed
recorded in Official Records Book 8982, page 1294, of the public records of
Hills borough County, Florida.

 

PARCEL B:  (CAMPING WORLD MAIN PARCEL):

 

A portion of
the Northeast 1/4 Section 33, Township 28 South, Range 20 East, Hillsborough
County, Florida, described as follows:

 

Commence at
the Northeast corner of Section 33, Township 28 South, Range 20 East, and run
along the East boundary of the Northeast 1/4 of Section 33, South 00°14’14”
East, a distance of 1318.90 feet to the North boundary of the Southeast 1/4 of
the Northeast 1/4 of said Section 33, South 89°59’17” West, a distance of
2258.05 feet; thence South }2°10’51 “ East, a distance of 88.15 feet to the
Point of Beginning; thence from said Point of beginning the following five (5)
courses: 1) North 77°49’09” East, 33.78 feet; 2) South 12°10’51” East, 432.35
Feet; 3) South 77°49’09” West, 330.18 feet; 4) North 10°58’12” West, 432.45
feet; 5) North 77°49’09” East, 287.26 feet to the aforementioned Point of
Beginning.

 

PARCEL C:  (CAMPING WORLD SHOP PARCEL):

 

A portion of
the Northeast 1/4 of Section 33, Township 28 South, Range 20 East, Hillsborough
County, Florida, described as follows:

 

Commence at
the Northeast corner of Section 33, Township 28 South, Range 20 East and run
along the East boundary of the Northeast 1/4 of Section 33, South 00°14’14”
East, a distance of 1318.90 feet to the North boundary of the Southeast 1/4 of
the Northeast 1/4 of said Section 33, South 89°59’17” West, a distance of
2258.05 feet to the Point of Beginning; thence from said Point of Beginning the
following five (5) courses: 1) South 77°49’09” West, 84.59 feet; 2) North
12°10’51” West, 114.00 feet 3) North 77°49’09” East, 202.00 feet; 4) South
}2°l0’51” East, 114.00 feet; 5) South 77°49’09” West, 117.41 feet to the
aforementioned Point of Beginning.

 

PARCEL lA:

 

TOGETHER WITH
a 50 foot ingress, egress easement for the benefit of Parcel 1, as described in
Official Records Book 8982, page 1278, of the public records of Hills borough
County, Florida.

 

2

 

PARCEL 2:

 

The West 125.0
feet of the East 689.0 feet of the South 400 feet of the North 433.0 feet of
the Northwest 1/4 of the Northeast 1/4 of Section 33, Township 28 South, Range
20 East, Hillsborough County, Florida.

 

PARCEL 3:

 

The West 132
feet of the North 1/2 of the Northwest 1/4 of the Northeast 1/4 of the
Northeast 1/4, Less the North 33 feet thereof of Section 33, Township 28 South,
Range 20 East, Hillsborough County, Florida.

 

AND

 

The East 132
feet of the West 264 feet of the North 1/2 of the Northwest 1/4 of the
Northeast 1/4 of the Northeast 1/4, Less the North 33 feet thereof of Section
33, Township 28 South, Range 20 East, Hillsborough County, Florida.

 

PARCEL 4:

 

The Southeast
1/4 of the Southeast 1/4 of Section 28, Township 28 South, Range 20 East, Less
the East 30 feet and Less the South 33 feet and Less, commence at the Southeast
corner of the Southeast 1/4 of the Southeast 1/4 of said Section 28, run thence
North 89°55’13” West, 34.74 feet, thence North 0°08’13” West, 33 feet to the
Point of Beginning; continue thence North 0°08’13” West, 37 feet; thence South
45°44’18” West, 52.94 feet, thence South 89°55’13” East, 38 feet to the Point
of Beginning for roads, all lying and being in Hillsborough County, Florida.

 

PARCEL 5:

 

The East 99.40
feet of the West 363.40 feet of the North 1/2 of the Northwest 1/4 of the
Northeast 1/4 of the Northeast 1/4 of Section 33, Township 28 South, Range 20
East, Hillsborough County, Florida, Less the North 33 feet thereof for road.

 

PARCEL 6:

 

Lot Beginning
464 feet West of the Northeast comer of the Northwest 1/4 of the Northeast I/4
of Section 33, Township 28 South, Range 20 East, Hillsborough County, Florida,
and run West 100 feet; thence run South 433 feet; thence run East 100 feet; and
thence run North 433 feet; Less the North 33 feet thereof for road purposes.

 

PARCEL 7:

 

Begin 264 feet
West of the Northeast corner of the Northwest 1/4 of the Northeast 1/4 of
Section 33, Township 28 South, Range 20 East, and run thence West 100 feet for
a Point of Beginning; thence run South 193 feet; thence run East 3 feet; thence
run South 36 feet; thence run West 3 feet; thence run South 204 feet; thence
run West 100 feet; thence run North 433 feet; thence run East 100 feet to the
Point of Beginning; Less the North 33 feet thereof for road purposes.

 

3

 

PARCEL 8:

 

The West 300
feet of the East 564 feet of the South 100 feet of the North 533 feet of the
Northwest 1/4 of the Northeast 1/4 of Section 33, Township 28 South, Range 20
East, Hillsborough County, Florida.

 

PARCEL 9:

 

The North
568.18 feet of the East 766.8 feet of the Southwest 1/4 of the Southeast 1/4 of
Section 28, Township 28 South, Range 20 East, Hillsborough County, Florida.

 

This Policy valid only if Schedule B is attached.

 

4

 

EXHIBIT B

 

Future Improvements

 

1.             80 sales offices

 

2.             107 service bays

 

3.             Relocation of
campground and increase size to 299 spaces

 

4.             500 display sites

 

5.             New recreation
center for relocated campground

 

6.             Conversion of
current Fleetwood display area to customer parking

 

7.             Conversion of
existing employee parking to customer parking

 

8.             New employee
parking area

 

9.             Filling in existing
retention/wetlands areas and construction of new retention/wetlands area north
of Sligh Avenue

 

5

 

IN WITNESS WHEREOF,
Landlord and Tenant have duly executed this Lease on the day and year first
above written.

 

	
  Two
  Witnesses:

  	
  LANDLORD: 

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  	
  I-4 LAND
  HOLDING LIMITED COMPANY, 

  
	
   

  	
  a Florida
  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  	
   

  	
  Name:  Erika
  Wallace

  
	
   

  	
   

  	
  Its:  Member  

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  	
  Name:  Donald
  Wallace

  
	
   

  	
   

  	
  Its:  Member

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  	
  LAZY DAYS’
  R.V. CENTER, INC., a Florida corporation

  
	
  (Name)

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
																

 

6

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