Document:

Exhibit 10.27

 

AMENDED AND RESTATED LEASE

 

THIS
AMENDED AND RESTATED LEASE is made and entered into as of the 1st day of April,
1997, by and between ERNEST KLATT and VIOLET M. KLATT, his wife (hereinafter
referred to as “Landlord”) and MITEY MITE RACE TRACKS, INC., a Florida
corporation (hereinafter referred to as “Tenant”).

 

WHEREAS,
on May 23, 1978, Landlord entered into a Lease with Malibu Grand Prix
Corporation, a California corporation (“Malibu”); and

 

WHEREAS,
the Lease was amended by an Amendment to Lease dated as of May 23, 1978 and was
further amended by Lease Amendment dated January 22, 1986 and a Third Amendment
to Lease dated April 15, 1989; and

 

WHEREAS,
the Tenant’s interest under the Lease was assigned from Malibu Grand Prix
Corporation to Mitey Mite Race Tracks, Inc., a Florida corporation; and

 

WHEREAS,
Landlord and Tenant are desirous of modifying the Lease, as from time to time
amended, in certain respects and are executing and delivering this Amended and
Restated Lease for the purpose of evidencing such modifications and
consolidating their understanding with respect to the Lease into this one
instrument;

 

NOW
THEREFORE, in consideration of the mutual covenants and conditions herein
contained and other good and valuable considerations, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby amend and
restate the Lease to read as follows:

 

1.                Demised Premises. Landlord
hereby leases to Tenant, and Tenant hereby rents from Landlord, upon the terms,
covenants and conditions hereinafter set forth, that certain real property in
the City of Dania, Broward County, State of Florida, as more particularly
described in Exhibit “A” annexed hereto and made a part hereof (hereinafter
called the “Rented Property.”)

 

2.                Lease Term. Subject to
the provisions of this Lease, the term of this Lease shall continue to December
31, 2008. Tenant shall have the right to extend the term of this Lease for two
(2) additional periods of five (5) years each upon the terms and conditions set
forth in Paragraph 41 hereof. The term “Lease Year” shall be defined as any
calendar year or portion thereof during the term of this Lease or any renewal
term or extension hereunder.

 

3.                Rent.

 

A.          Effective as of August 1, 1997, the
Tenant shall pay to the Landlord for the Rented Property during the term of
this Lease in lawful money of the United States the sum of Two Hundred Five
Thousand Dollars ($205,000.00) for each Lease Year that this Lease is in
effect, as and for a minimum annual rental, which said sum shall be payable in
equal monthly installments of Seventeen Thousand Eighty-Three and 33/100
Dollars ($17,083.33) each, payable in advance and without notice, setoff or
deduction, commencing the first day of the first full calendar month after
execution of this Lease. Simultaneously with Tenant’s execution and delivery
hereof to Landlord, Tenant has paid to Landlord the amount of Forty-Nine Thousand
Twenty-Four and 97/100 Dollars ($49,024.97) This payment represents additional
minimum rent payments due Landlord for the period August 1, 1997 through
January 31, 1998 and rent for February, 1998. Tenant acknowledges that the
percentage rent due and payable for the last six (6) months of calendar year
1997 shall be paid by Tenant pursuant to and in accordance with the Lease as it
existed prior to this Amended and Restated Lease.

 

B.           The minimum annual rental provided to
be paid in Subparagraph A. above is based upon the cost of living for the month
of November, 1996, as reflected in the Consumer Price Index for All Items as
determined by the United States Department of Labor, Bureau of Labor
Statistics, based on all items for the year 1982-84, equaling 100. It is agreed
by the parties hereto that the minimum annual rental shall be adjusted in the
following manner for

 

 

each Lease Year during the term hereof, or any term
during any renewal period, after December 31, 1998, on the basis of the said
Consumer Price Index, or, if there shall be no such Consumer Price Index, then
by the successor of the most nearly comparable successor index thereto
(appropriately adjusted to the November 1996 base);

 

(1)     The basic index figure for the purpose
hereof shall be the aforesaid index figure for November 1996. If the corresponding
index figure for November 1998 and for each November thereafter during the term
of this Lease as from time to time extended, shall exceed the said basic index
figure for November 1996, then the minimum annual rental for the next Lease
Year commencing January 1, and similarly for each Lease Year thereafter shall
be increased to an amount arrived at by multiplying the minimum annual rental
then payable by a fraction, of which the numerator shall be the index figure
for the month of November preceding such Lease Year, and the denominator shall
be such minimum annual rental.

 

(2)     The increased minimum annual rental so
obtained as provided in Subparagraph (1) above shall be payable by the Tenant
to the Landlord in twelve monthly installments as nearly equal as may be,
commencing with the first day of January in each such Lease Year to and
including the first day of December in such Lease Year. Any provision hereof to
the contrary notwithstanding, in no event shall the increase in minimum annual
rental for any one Lease. Year over the prior Lease Year exceed 5.5%, unless
the adjustment is made pursuant to subparagraph 3C. below. If the November
index figure for the preceding year is not available in time to permit the rent
increase to be determined prior to its effective date on January 1, then Tenant
shall continue paying minimum annual rent based on the prior rear’s rate until
the first day of the month following the month in which the prior year’s November
index figure becomes available, at which time the minimum annual rental shall
be adjusted retroactively to January 1 of the current year and shall pay the
increased rent for the current month together with the difference between the
aggregate minimum rent paid for the current year and the minimum annual rent
that should have been paid since January 1 of the current year based on the adjust
rent together with interest computed at the prime rate of Sun Bank, N.A. in
effect at the time of payment.

 

(3)     Notwithstanding any possible provision to
the contrary contained herein, it is agreed by the parties hereto that the
minimum annual rental payable hereunder for any Lease Year during the term
hereof shall never be less than the greater of the prior year’s minimum annual
rental or $205,000.00.

 

C.   At Landlord’s option, Landlord may request that the annual rent be
adjusted effective the beginning of each renewal term as provided under
Paragraph 41, based upon a reappraisal of the Rented Property with the new rent
being determined by the calculation of ten percent (10%) of the fair market
value of the land only (not including any tenant improvements thereon) as
determined by a MAI appraiser qualified and familiar with property located in
Broward County, Florida. Upon notice by Landlord no later than ninety (90) days
prior to the next succeeding renewal term, Landlord would be required to give
Tenant written notice of its desire to reappraise the Rented Property. Upon
Tenant’s receipt of said notice, Tenant would be required, at Tenant’s expense,
to obtain an appraisal as set forth above and deliver said appraisal to Landlord
not later than forty-five (45) days prior to commencement of the renewal term.
If said appraisal is not satisfactory to the Landlord, the Landlord may, at
Landlord’s option and expense, obtain a MAI appraisal from an appraiser
qualified and familiar with property located in Broward County, Florida. If
Landlord and Tenant are unable to agree as to either appraisal, then the two
(2) appraisers would be requested to select a third independent appraiser whose
appraisal would be binding upon Landlord and Tenant. The compensation for the
third appraiser would be borne equally between Landlord and Tenant. However,
said compensation for the third appraiser should be commercially

 

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reasonable and should not exceed 125% of the cost of the least
expensive of the first two (2) appraisals.

 

D.   In addition to the rent to be paid hereunder,
the Tenant shall pay to Landlord the sums required to be paid as Florida sales
or use tax under the then applicable law and regulations then in effect during
the term of this Lease.

 

E.   All payments, as aforesaid, shall be made and
paid by the Tenant to the Landlord at Post Office Box 1477, Boynton Beach,
Florida 33425, or at such other place in the United States of America as the Landlord
may, from time to time, designate in writing, and such rental shall come due
and be paid in each instance on the date which it may come due, without the
necessity of demand. If no place be currently specified as the place at which
the Landlord desires the rent to be paid, then it shall be paid at the last
place at which the Landlord specified as the place for the Tenant to make the
payment of the rent. All rents shall be payable in the current legal tender of
the United States of America, as the same is then by law constituted. Any
extension, indulgence, or waiver granted or permitted by the Landlord in the time,
manner, or mode of payment of rent, upon any occasion, shall not be construed
as a continuing extension or
waiver, and shall not preclude Landlord from demanding strict compliance herewith
thereafter. If Tenant sends rent to Landlord by mail, the envelope containing
the check for the rent shall be postmarked no later than the due date for such
rent.

 

F.   This Lease is an absolute net lease, the rent
reserved herein shall be paid to Landlord without any claim on the part of
Tenant for diminution, setoff or abatement and nothing shall suspend, abate or
reduce any rent to be paid hereunder; and the Tenant hereby assumes and agrees
to pay and perform all payments, expenses, duties and obligations with relation
to the Rented Property, the improvements thereon and appurtenances thereto, and
the use, maintenance and operation thereof, whether such duties and obligations
would otherwise be construed to be those of Landlord or Tenant, so that no
matter from what source arising, if anything shall be required to be done in,
upon, or about the Rented Property, the improvements thereon or appurtenances
thereto, the same shall be done and fulfilled at the sole expense and
responsibility of the Tenant, without any expense, liability, or obligation
whatsoever to or on the Landlord, except for such obligations as are expressly
assumed by the Landlord herein.

 

4.      Use of Property.

 

A.   Tenant shall use the Rented Property for the
purpose of a family amusement center, including, but not limited to, go-karts,
video arcade, snack bar, redemption area and accessory amusement sales and
attractions and for no other purpose without written consent of Landlord first
being obtained.

 

B.   Tenant will not use or permit the use of the
Rented Property or any part thereof for any unlawful purpose and will not do or
permit any act or thing which would materially impair the value or usefulness
of the Rented Property or any part thereof, or which would constitute a public
or private nuisance or waste or which may be a nuisance or annoying or damage
to Landlord or which would invalidate any policies of insurance or increase the
premium thereof now or hereafter written on the building and premises leased
hereunder.

 

5.      Utilities. Tenant
covenants that he will promptly pay for all gas, water, electricity, sewage
disposal, and other utilities used in said Rented Property, during the term of
this Lease.

 

6.      Taxes.

 

A. Tenant will, at Tenant’s sole cost and expense, bear, pay and
discharge, prior to delinquency, all real estate

 

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taxes, assessments, sewer rents, water rents
and charges, duties, impositions, license and permit fees, charges for public
utilities of any kind, payments and other charges of every kind and nature
whatsoever, ordinary or extraordinary, foreseen or unforseen, general or
special (all of which are hereinafter sometimes collectively referred to as “Impositions”),
which shall, pursuant to present or future law or otherwise, prior to or during
the term hereby granted, have been or be levied, charged, assessed or imposed
upon, or become due and payable out of or for, or become or have become a lien
on the Rented Property and the improvements thereon; it being the intention of
the parties hereto that the rents reserved herein shall be received and enjoyed
by Landlord as a net sum, free from all such Impositions; provided, however,
that if, at any time during the term of this Lease, the then prevailing method
of taxation or assessment shall be changed so that the whole or any part of the
Impositions theretofore payable by Tenant as above provided, shall instead be
levied, charged, assessed, or imposed wholly or partially on the rents received
by the Landlord from the Rented Property, or shall otherwise be imposed against
Landlord in the form of franchise tax or otherwise, then Tenant shall pay all
such levies, charges, assessments, impositions, taxes and other substituted
charges to the extent that the same shall be directly related to and assessed
against the Rented Property or the rent thereon; provided, however, that Tenant
shall be required to make such payments only to the extent that the same would
be payable if the Rented Property were the only property of Landlord. Tenant
shall pay all interest and penalties imposed upon the late payment of any
Impositions which Tenant is obligated to pay hereunder. If Tenant shall fail,
for ten (10) days after notice and demand given to Tenant, to pay any
Imposition on or before the last day upon which the same may be paid without
the imposition of interest or penalties for the late payment thereof, then
Landlord may pay the same with all interest and penalties imposed upon the late
payment thereof and the amount so paid by Landlord shall thereupon be and
become immediately due and payable by Tenant to Landlord hereunder. For any
period in which the lease term shall not cover an entire tax year of the
governmental authority taxing the Rented Property, same shall be properly
prorated to reflect the period of Tenant’s possession under this Lease;
provided, however, Tenant shall be liable for all taxes assessed in the year in
which the Lease terminates which are directly due to improvements made by the
Tenant in the buildings located on the Rented Property.

 

B.   Tenant shall deliver official
receipts evidencing the payment of all taxes assessed to the Rented Property
within ninety (90) days after November 1st of each year during the Term of this
Lease or any extension thereof.

 

C.   Tenant shall, however, have
the right to contest by legal proceedings, conducted at its own expense, in the
name of the Landlord or Tenant, any and all such taxes assessed or imposed against
or upon the Rented Property, and in case any such taxes, as a result of any
such legal proceedings, be reduced, Tenant shall be entitled to refunds to the
extent that such reduction shall relate to taxes theretofore paid by Tenant,
together with any interest received thereon; provided, however, Tenant shall
post a bond conditioned upon the payment of such taxes which shall in no event be
less than 110% the amount of the taxes contested.

 

D.   Tenant, during the term of
this Lease, shall pay all special assessments levied and assessed against the
Rented Property by any governmental authority, or payable by Landlord with
respect to Landlord’s ownership of the Rented Property. Such payment shall be
made to Landlord within thirty (30) days after notification by Landlord to
Tenant of the amount of such special assessment, together with any interest.

 

7.      Inspection and Offering
for Sale or Lease.

 

A.   Landlord shall have the right from time to
time to designate a representative to inspect the Rented Property, or any part
thereof, at reasonable times and without interference with the conduct of
Tenant’s business.

 

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B.   Landlord or its agents shall be entitled to
show the Rented Property at reasonable times to persons wishing to purchase the
same; and Tenant further agrees that on and after sixty (60) days prior to the
termination of the term of this Lease, Landlord or its agents shall have the
right to show the Rented Property for rental purposes and to place reasonable
notices on the front of said Rented Property, or any part thereof, offering the
Rented Property “To Let” or “For Sale”, and Tenant hereby agrees to permit the
same to remain thereof without hindrance or molestation; provided, however,
that such notices shall not interfere with Tenant’s signs or the conduct of
Tenant’s business.

 

8.      Signs. Tenant may
place or cause to be placed any exterior sign or signs at, in, or on said
Rented Property or any other part of the same if there is compliance with
existing ordinances.

 

9.      Assignment and Subletting.

 

A.  Except for the assignment and subletting
permitted under Subparagraphs B and C below, Tenant shall not, without the prior
written consent of Landlord (i) assign, sublet, convey, mortgage this Lease or
any interest hereunder; (ii) suffer to occur or permit to exist any assignment
of this Lease, or any lien upon Tenant’s interest, involuntarily or by
operation of law; (iii) sublet the Rented Property or any part thereof; or (iv)
permit the use of the Rented Property by any parties other than Tenant, its employees,
and invitees. Landlord’s consent to any assignment, subletting or transfer, or
Landlord’s election to accept any assignee, sublessee or transferee as a tenant
hereunder shall not release the original Tenant from any covenant or obligation
under this Lease. Landlord’s consent to any assignment, subletting or transfer
shall not constitute a waiver of Landlord’s right to withhold its consent to
any future assignment, subletting or transfer. The sale or other transfer of a
majority or the controlling interest in stock in Tenant shall constitute an assignment
for purposes of this paragraph 9. Tenant’s right to take any of the actions
described in (i) through (iv) above shall further be conditioned on Tenant not
being in default hereunder.

 

B.   Tenant shall give Landlord written notice of
any proposed voluntary assignment or sublease, which notice shall contain the
name and address of its Assignee and a statement certifying to Landlord that
the assignment is being made in conjunction with the sale of Tenant’s business
to an assignee who will accept the terms and conditions of this Lease and will
be purchasing the assets of Tenant’s business and operating the business after
the purchase thereof on the Rented Property. If the Lease is being assigned to
an assignee who is purchasing Tenant’s business with the intention of operating
the business on the Rented Property, then Landlord agrees to not unreasonably
withhold consent to such assignment if (i) the Assignee can establish through
its financial statements a financial net worth equal to or greater than that of
the Tenant; and (ii) that no substantial alteration need to be made to the
existing Rented Property in order to conduct the business by Assignee.

 

C.   Tenant may, without the prior written consent
of Landlord, sublet all or any portion of the Rented Property to one of its
Affiliates for the purpose of operating a family amusement center, a restaurant
or any ancillary businesses relating to the operation of a family amusement
center, so long as Tenant and each of its Affiliates continue to comply with
the terms of the Lease as amended herein. As used herein, the term “Tenant’s
Affiliates” shall mean any corporation owned 100% by the shareholders of Tenant
or corporation wholly-owned by Tenant, which ownership shall continue during
the term of this Lease or any extension thereof.

 

D.   If the notice from Tenant to Landlord of a
proposed assignment notifies Landlord that Tenant intends to voluntarily assign
the Lease, but not in conjunction with the sale of its business and assets to
an assignee who would be operating same,

 

5

 

then Landlord shall have the option to terminate the Lease in case of
such assignment to all or any portion thereof. If Landlord wishes to exercise
such option to terminate, Landlord shall, within thirty (30) days after
Landlord’s receipt of such notice from Tenant, send to Tenant so stating and in
such notice Landlord shall specify the date at which such termination is
effective; and Landlord shall be obligated to pay Tenant the present value of
the remainder of the Term of the Lease (not including option terms for which
options have not been exercised) in accordance with the provisions of
Subparagraph E below, if the proposed assignment by Tenant is voluntary.

 

E.   If Landlord elects to terminate this Lease as
to all or a portion of the Rented Property, the sums due Tenant upon such
termination, if any, shall be paid within thirty (30) days after the sum is so
determined in accordance with the procedures set forth in this Subparagraph E.
The value of the balance of the Term of the Lease shall be the present value of
the excess of the fair market rental of the Rented Property over the rent paid
for the balance of such Term as defined herein. If Landlord and Tenant cannot
agree as to the fair rental of the Rented Property within fifteen (15) days
after Landlord’s notice to Tenant electing to terminate the Lease under this
Subparagraph E, Landlord and Tenant shall each promptly select an appraiser and
notify the other of the appraiser so selected. All appraisers shall be members
in good standing of the American Institute of Real Estate Appraisers and shall
have prior experience in making appraisals in the area in which the Rented
Property is located. The two (2) appraisers shall determine the fair market
rental for the Rented Property within thirty (30) days after the selection and
shall report such fair market rental to Landlord and Tenant by a written
certificate signed by each of them. If two (2) appraisers cannot agree on the
fair market rental within such period, they shall select a third appraiser
within fifteen (15) days after the expiration of such period. All three
appraisers shall determine the fair market rental within thirty (30) days after
the selection of the third appraiser and shall report the fair market rental to
Landlord and Tenant by a written certificate signed by all of them. In case of
a disagreement among the three (3) appraisers on the amount of the fair market
rental, the individual determinations of the three (3) appraisers shall be
averaged. However, if the amount determined by any appraiser is more than
twenty percent (20%) greater or less than the median of the three (3)
appraisers’ determinations (or the actual determination of the appraiser having
the median amount of both the other appraisers’ determination vary by more than
twenty percent (20%) from such median amount) shall be used. Landlord and
Tenant shall each pay the charges of its own appraiser and one-half (1/2) the
charges of the third appraiser.

 

F.   Tenant shall pay Landlord’s attorney for fees
incurred in approving an assignment or sublease of the Lease which fee shall
not exceed One Thousand Dollars ($1,000.00).

 

G.   Any provision herein to the contrary notwithstanding,
in no event shall any assignment of this Lease by Tenant be valid unless and
until the Assignor and the Assignee shall have delivered to Landlord a fully
executed counterpart of the instrument of Assignment executed by both Assignor
and Assignee and, wherein, Tenant has explicity agreed to remain primarily liable
for the performance of all of the Tenant’s obligations under this Lease. No
acceptance by Landlord of any performance, rent, or additional rent herein
provided to be done or paid by Tenant from any person, firm or corporation
other than Tenant, shall discharge the Tenant (except to the extent of the
performance and payment so accepted by Landlord) from liability to pay all rent
herein provided to be paid by Tenant or from liability to perform all of the
terms, covenants, conditions and agreements set forth in this Lease. In the
event of a termination of this Lease, each sub-tenant of space in the Rented
Property shall attorn to the owner of the reversion, unless the owner of the
reversion shall, at the owner’s option, elect to dispossess such sub-tenant or
otherwise terminate the sublease held by such sub-tenant. Each sub-tenant who,
hereafter, subleases space within the Rented Property, shall

 

6

 

be deemed to have agreed to the provisions of
this paragraph, but the absence of such a clause from any sublease shall not
relieve the sub-tenant from the provisions of this subparagraph. Tenant hereby
assigns to Landlord, following any default by Tenant hereunder, right to
collect from any or all subtenants all rents and other sums payable by them and
to apply the same to the payment of rent and all other amounts payable by
Tenant hereunder, and any balance shall be paid over to Tenant, but no exercise
by Landlord of rights under this subparagraph shall be deemed a waiver by
Landlord of any other rights hereunder or be deemed an acceptance by Landlord
of such sub-tenant or an acquiescence by Landlord to the occupancy of any part
of the Rented Property by such sub-tenant or a release of Tenant from the
performance of any of its obligations under this Lease.

 

10.    Lien on Personal Property.
Tenant grants Landlord a lien on all Tenant’s furniture, fixtures, goods and
chattels of Tenant which shall or may be brought or put on the Rented Property
as security for the payment of the rent and Tenant’s performance of the terms
of this Lease. Said lien may be enforced by distress proceedings at the
election of the Landlord.

 

11.    Removal of Personal
Property During Default.

 

A.   If Tenant is in default of any terms of this
Lease, then Tenant shall not remove any equipment, fixtures, furniture, furnishings,
or other personal property from the Rented Property without the previous
consent in writing of the Landlord except for trade merchandise sold in the
usual course of business for good and valuable consideration.

 

B.   If after default in payment of rent or
violation of any other provisions of this Lease, or upon the expiration of this
Lease, Tenant moves out or is dispossessed and fails to remove any trade
fixtures and personal property within five (5) days following written notice to
Tenant to remove same, then and in that event, the said fixtures and personal
property shall, at Landlord’s election, be deemed abandoned by the said Tenant
and shall become the property of the Landlord, or Landlord may cause same to be
removed from the Rented Property and to be stored at Tenant’s expense.

 

12.    Damage to Tenant’s
Property. Landlord shall not be liable for any damage to Tenant’s property
from an intentional or negligent act of any co-tenant or occupant of the
property surrounding the Rented Property, or other person; or by fire, hurricane,
or other acts of God; or by riots or vandals; or from any other cause. All such
risks shall be assumed by Tenant.

 

13.    Indemnification of
Landlord. In consideration of said Rented Property being leased to Tenant
for the above rental, Tenant agrees that Tenant, at all times, will indemnify
and keep harmless Landlord from all losses, damage, liabilities, fines,
penalties, claims and judgments and expenses and costs (including reasonable attorney’s
fees and costs, whether incurred before, during or after trial, or in
conjunction with post judgment, bankruptcy or administrative proceedings) which
may arise or be claimed against Landlord, for any injuries or damages or claim
of injury or damage to person or property of any nature, consequent upon or
arising from the use, occupancy, possession, management, improvement construction,
alteration, repair, maintenance or control of said Rented Property or the
improvements thereon, from time to time, or consequent upon or arising from any
acts, omissions, neglect, or fault of Tenant (his agents, servants, employees,
licensees, customers, or invitees), or consequent upon or arising from Tenant’s
failure to comply with the laws, statutes, ordinances, or regulations or with
the requirements of this Lease; that Landlord shall not be liable to Tenant for
any damages, losses, or injuries to the person or property of Tenant which may
be caused by the acts, neglect, omissions, or faults of any person, firm or corporation.
Tenant, at Tenant’s sole cost and expense, will defend, by counsel of Tenant’s
choosing, any and all suits that may be brought and claims which may be made,
against Landlord, or in

 

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which Landlord may be impleaded with others, whether Landlord shall be
liable or not, upon any such above-mentioned liability, loss, damages,
expenses, costs of action, suits, interest, fines, penalties, claims, and
judgments and shall satisfy, pay, and discharge any and all judgments that may
be recovered against Landlord in any such action or actions in which Landlord
may be a party defendant or that may be filed against the Rented Property or
the improvements from time to time thereon or any interest therein and, in the
event of a failure of Tenant to pay the sum or sums for which Tenant shall
become liable as aforesaid, then Landlord may pay such sum or sums, with all interest
and charges which may have accrued thereon, and the amount so paid by Landlord
shall be payable by Tenant to Landlord upon demand.

 

14.    Alterations and Improvements.

 

A.  Except as hereinafter expressly provided, the Tenant shall not make
or permit to be made any alterations, additions, changes or improvements to the
Rented Property, or to any buildings or improvements standing upon the Rented
Property, at any time, or to any part thereof, including the appurtenances
thereto, without first obtaining the written consent of the Landlord, which
Landlord agrees not to unreasonably withhold, provided the Tenant has fully complied
with each and every one of the terms, conditions and covenants of this
Agreement at the time such request for consent is made. However, the foregoing
shall not be interpreted as prohibiting the Tenant from making ordinary and
necessary repairs to preserve any building or improvements or appurtenances
which may be located upon the Rented Property, provided the cost thereof is not
in excess of Thirty Thousand Dollars ($30,000.00).

 

B.   Before the commencement of any construction on the Rented Property
of any alterations, additions, changes or improvements, including the
demolition and/or reconstruction of any building or improvements on the Rented
Property, the Tenant shall comply with the following conditions:

 

(1)           The
Tenant shall submit to the Landlord plans and specifications, in duplicate, of
such proposed alterations, changes, additions, improvements or demolition and
reconstruction, one (1) copy of which may be retained by the Landlord, and
Landlord shall not unreasonably withhold his consent to any alteration, addition,
change, improvement, demolition or reconstruction, provided they shall meet
with the approval of any and all municipal, state, federal, or other
authorities, offices and departments now existing or hereafter created, having
jurisdiction in the premises, or any like body, and by the holder of any mortgage
superior in lien to this Lease, and provided further that at the time such
request is sought by the Tenant, such Tenant shall not be in default in the
performance of any of the terms, conditions and agreements of this Lease.

 

(2)           At
the time the aforesaid request is made by the Tenant, said Tenant shall submit
to the Landlord a written statement as to the cost of the proposed alterations,
changes, additions, improvements, demolition and reconstruction, as the case may
be, and said statement of costs shall be certified as accurate by an architect
selected by the Tenant, and approved by the Landlord, licensed in the state and
county in which the Rented Property is located, who shall have the supervision
of the construction of said improvements.

 

(3)           Before
commencing any alterations, additions, changes, or improvements and as a
further condition precedent thereto, the Tenant shall obtain at its own cost
and expense, pay for and deposit with the Landlord, a premium paid policy for
Comprehensive General Liability Insurance in a solvent insurance company
satisfactory to the Landlord and authorized and licensed to do business in the
state in which the Rented Property is located indemnifying and protecting the
Landlord from any and all claims for damages to person or property or for loss
of life or property arising out of such alterations, additions, changes or
improvements and from and against the cost of defending any suit or action upon

 

8

 

any such claim, such liability insurance to be
in at least the sum of Five Hundred Thousand Dollars ($500,000,00) for property
damage and not less than Five Million Dollars ($5,000,000.00) for bodily
injury, personal injury or death in any one occurrence. The coverage must
include, but not be limited to, coverage for all operations of Tenant, tenant’s
contractors and subcontractors, including automobile coverage, contractual
liability and completed operations liability. The Tenant, at its own expense,
shall also procure and carry or cause to be procured, carried and paid for,
adequate Workmen’s Compensation Insurance covering all workmen, employees,
servants and others engaged in or upon such work and such other insurance as
then may be required by law to be carried by the Landlord and/or the Tenant;
and the Tenant shall also procure endorsements on existing policies whereby the
insurance shall continue in full force and effect, notwithstanding the said
alterations, additions, changes and improvements and during the course thereof.

 

(4)           Before commencing any alterations, additions, changes or
improvements, as aforesaid, under the conditions precedent thereto, the Tenant
shall obtain, at its own expense and cost, pay for and deposit with the
Landlord, and if the Landlord shall so designate, with any mortgagee holding
mortgages encumbering the fee of the Rented Property, a Payment and Performance
Bond, which complies with the requirements of Florida Statutes §713.23, of a
responsible surety company authorized to do business in the state in which the
Rented Property is located acceptable to the Landlord and to such mortgagee, if
any, in an amount of the costs of construction, as aforesaid, plus ten percent
(10%) of such costs in addition thereto.

 

C.   Tenant agrees with Landlord
that no buildings or improvements now on, or hereafter constructed on the Rented
Property shall be removed or torn down, in whole or in part, until the Tenant
has furnished the Landlord with the items specified in Subparagraph B above.

 

D.   After the commencement of construction, Tenant
agrees to carry such construction through continuously and with due diligence to
completion, in accordance with the plans and specifications and all
requirements of governmental authority; provided, however, that the Tenant has
the power to make minor variations and departures in and from the plans and
specifications, provided there is no substantial decrease in the cost or square
footage area of the said building, as determined by the attached plans and
specifications. Tenant shall not be liable, however, for any delays in any
construction due to interruption caused by strikes, walkouts, acts of God,
riots, or acts of war.

 

E.   It is further understood and agreed by and
between the parties that the Tenant will, upon completion of the work, exhibit
unto the Landlord, at the Landlord’s demand, bona fide receipted bills and/or
sworn to waivers of liens from all persons who shall have furnished work,
labor, services and/or materials to the construction, including architects,
utilities and insurance bills; and the Tenant shall exhibit unto the Landlord sworn
waivers and/or receipted bills from all persons who were subcontractors or
materialmen on the job and the affidavit and release of any general contractor
who may have hired day labor or common labor, showing that all charges for said
work, labor, services, and/or materials have been paid and that the lien or
liens and claims which would otherwise have existed therefor shall have been
released. The Tenant shall comply with and observe the laws of the state in
which the Rented Property is located with respect to the payment of all
contractors, subcontractors, materialmen and laborers, and shall withhold not
less than ten percent (10%) of the cost of the work done or materials supplied
from time to time as the work progresses until completion and final payment, as
provided for by the Lien Law of the state in which the Rented Property is
located.

 

F.   It is further understood and agreed by and
between the parties that failure of the Tenant to comply with any of the terms
hereof, including the preparation of the plans, the obtaining

 

9

 

of a surety bond, the doing
of the work, the paying therefore and the exhibiting of full and final waivers
and releases shall constitute a default in this Lease with the same effect as
though rent had matured on the day when the Tenant failed to comply with such
portion of this Paragraph and as though such rent had not been paid on that
day. The Landlord shall, or its agents shall, without liability or
responsibility on their part, have the right to make inspections from time to
time of the work done and of the bills tendered and/or paid and of the plans
and bids in the Tenant’s possession or those in the possession of a lending
institution, and to ascertain whether or not the work is progressing properly
and whether payments are being made in accordance with and in proportion to the
progress of the work. In the event that the work is not progressing properly or
that payments are not being made in proportion to the work being done, the Landlord,
at Landlord’s option, may demand that the additional cost of the construction,
if the construction cost is in excess or is anticipated to be in excess of the
original estimate, forthwith be deposited with the mortgagee or in the escrow
fund, and such demand shall forthwith be complied with.

 

G.   Any and all alterations, additions,
improvements, and changes made by the Tenant at any time, or repairs or
alterations thereto, shall immediately be and become a part of the Rented
Property herein, and upon the termination of this Lease, by default or by
ordinary lapse of time, all of said improvements, alterations, buildings and
additions shall become the property of the Landlord without the necessity of
Landlord paying any compensation therefor.

 

H.   Tenant hereby represents and warrants to
Landlord that all utilities presently serving the Rented Property, or which may
hereafter be installed, for that purpose shall either be installed in publicly
dedicated easements or perpetual unencumbered easements specifically running in
favor of Landlord and the Rented Property.

 

I.     All improvements presently on the Rented
Property and all improvements hereafter constructed on the Rented Property by
Tenant are and shall be the property of Tenant during the continuance of the
term of this Lease and no longer. At all times during the term of this Lease,
the improvements which are owned by Tenant shall not be conveyed, transferred
or assigned, unless such conveyance, transfer or assignment shall be to a
person, corporation or other entity to whom this Lease is being transferred or
assigned simultaneously therewith in compliance with applicable provisions of
this Lease. At all times, the holder of the leasehold interest of Tenant under
this Lease shall be the owner of said improvements. Any attempted conveyance,
transfer or assignment of the improvements, whether voluntarily or by operation
of law or otherwise, to any person, corporation or other entity, shall be void
and of no effect whatever, unless such conveyance, transfer or assignment shall
be to a person, corporation or other entity to whom this Lease is being
transferred or assigned simultaneously therewith in compliance with applicable
provisions of this Lease. Similarly, so long as the improvements, or any part
thereof, shall remain on the Rented Property, any attempt at transfer or
assignment of the Leasehold interest or Tenant under this Lease shall be void
and of no effect whatever, unless such transfer or assignment shall be to a
person, corporation, or other entity to whom the improvements are being
conveyed, transferred, or assigned simultaneously therewith. Upon any
termination of this Lease, whether by reason of the normal expiration of the
term hereof, or by reason of any other provision of this Lease or cause whatsoever,
if the improvements, or any part thereof, shall then be on the Rented Property,
all of Tenant’s right, title and interest therein, or any entity or person
acquiring title thereto through Tenant, shall cease and terminate and title to
the improvement shall vest in Landlord. No further deed or instrument shall be
necessary to confirm the vesting in Landlord of title to the improvements. Upon
any termination or expiration of this Lease, however, Tenant shall, upon
request of Landlord, execute, acknowledge and deliver to Landlord an instrument
confirming that

 

10

 

all of Tenant’s right, title
and interest in or to the improvements has expired and that title to the
improvements has vested in Landlord.

 

15.    Insurance Policies.

 

A.   The Tenant shall provide and maintain, at its
sole coat and expense, at all times during the term of this Lease, General
Comprehensive Public Liability insurance against claims for bodily injury,
death or property damage occurring on, in or about the Rented Property, such
insurance to afford protection of not less than Two Million Dollars
($2,000,000.00) with respect to bodily injury or death to all persons in any
one accident and not less than Five Hundred Thousand Dollars ($500,000.00) with
respect to property damage in any one occurrence, or such other amounts in excess
of the amount set forth above as is commercially prudent or as may be required
by the holder of any mortgage encumbering the Rented Property.

 

B.   The Tenant hereby covenants and agrees with
the Landlord that it will, at its expense, at all times during the term of this
Lease, keep insured any and all buildings and improvements now on, or that may
be built or placed upon said Rented Property, and the furniture and fixtures
therein, in good and responsible insurance companies authorized to do business
in the state in which the Rented Property is located, and approved by Landlord, for protection against loss or damage
caused by or resulting from fire and windstorm, or other causes included within
the terms “extended coverage” and “extended additional coverage” in an amount
equal to full insurable value of said building and improvements in an amount sufficient
to prevent Landlord or Tenant from becoming a co-insurer of any loss; such
policies shall be written on a replacement cost basis or on a blanket coverage
subject to the 90% average clause.

 

C.   Original and renewal policies, or
certificates thereof, representing all of the above provided for insurance, shall
be delivered by Tenant to the Landlord at least thirty (30) days before the
expiration of insurance with said policies or certificates of renewal; and
within thirty (30) days after such renewal, policies or certificates thereof
shall take effect (or sooner if payment is necessary before the expiration of
thirty (30) days in order to prevent cancellation of said policies, or any of them),
the Tenant shall furnish to the Landlord proof of the receipt by the respective
insurance companies of the premiums thereon, if so required by the Landlord. All
policies and/or certificates shall name Landlord as one of the insured parties under
the policies described in Subparagraphs A and B above, and the policies and/or
certificates as the case may be shall provide that the insuring company shall
not amend or cancel any such insurance without giving Landlord at least thirty
(30) days’ advance written notice of such amendment or cancellation.

 

D.   Upon the default of the Tenant in effecting
any such insurance, or procuring or delivering the policies or certificates therefor
as directed by the Landlord, or in paying the premiums therefor, and any and
all charges incidental thereto, when the same become payable, or in procuring
and delivering to the Landlord renewals of expired policies or certificates
thereof, at least thirty (30) days before such expiration, the Landlord may
procure any such insurance, and/or pay the premiums and other charges incidental
thereto, and any and all amounts so paid by the Landlord, together with the
interest thereon from the date of such payment, at the rate of ten percent
(10%) per annum, shall be additional rental hereunder, and shall be paid with
the next and subsequent installment of rent, which shall become due after such payment
by Landlord; it being expressly agreed that the payment by Landlord of any such
premium shall not be deemed to waive or release the default in the payment
thereof by the Tenant, or the right of the Landlord to take such action as may
be permissible hereunder, as in the case of default in the payment of rent.

 

E.   Tenant shall not violate or permit to be
violated any conditions or provisions of any said policies, and Tenant shall

 

11

 

so perform and satisfy the
requirements of the companies writing such policies that, companies of good
standing, and acceptable to the Landlord, shall be willing to write and
continue such insurance.

 

F.   Tenant shall cooperate with the Landlord and
any mortgagee in connection with the collection of any insurance monies that
may be due in the event of loss, and shall execute and deliver to Landlord and
any mortgagee such proofs of loss, and any other instruments that may be
required for the purpose of facilitating the recovery of any such insurance monies,
and in the event that Tenant shall fail or neglect to so cooperate or to
execute, acknowledge, and deliver any such instrument, Landlord in addition to
any other remedies, may, as the agent or attorney in fact of Tenant, execute
and deliver any proofs of loss, and any other instruments as may be desirable
to Landlord and any mortgagee, for the collection of such insurance monies, and
the Tenant hereby irrevocably nominates, constitutes and appoints Landlord,
Tenant’s proper and legal attorney in fact for such purpose, hereby ratifying
all that Landlord may do as such attorney in fact of Tenant. Landlord shall
cooperate with Tenant and any mortgagee in the same manner and to the same
extent as Tenant is required to cooperate hereunder.

 

16.    Damage.

 

A.  The complete or partial destruction or damage
by fire or other casualty of the building and improvements now on, or which may
hereafter be placed or erected on the herein Rented Property, shall not
terminate this Lease or entitle the Tenant to surrender possession of said
Rented Property, to terminate the Lease, or
to any abatement or reduction in the rent or other charges payable under
this Lease, any law or statute to the contrary notwithstanding. If any portion
of the Rented Property is damaged by fire or other casualty, Tenant shall
notify Landlord in writing within three (3) days after the date of the
happening of such fire or other casualty.

 

B.   The Tenant covenants and agrees that, within
one (1) calendar month after the damage or destruction of any of the buildings
or improvements now on or hereafter to be erected on the herein Rented
Property, or the date the insurance proceeds are paid for said damage,
whichever is earlier in point of time, it will begin the repair, construction,
or replacement of such damaged or destroyed buildings or improvements; and that
within six (6) calendar months after such damage or destruction, the Tenant
will have repaired or reconstructed, or replaced said buildings or improvements
with those of the same type and character, and of equal value to those so
damaged or destroyed.

 

C.   All sums received by Landlord and/or Tenant
and any mortgagee from policies of fire and extended coverage insurance, as a
result of such damage or destruction to the buildings and improvements now on,
or which may hereafter be placed or erected on the above-described property,
shall be paid as follows: FIRST, there shall be paid from such funds an amount
equal to the sum required to be paid to the mortgagee of the mortgage
encumbering the above-described property and the improvements thereon, whose lien
is superior to the Landlord’s lien, if any; SECOND, there shall be paid to the
Landlord an amount equal to the rent, taxes, and assessments or other amounts
due and payable under the terms of this Lease by the Tenant, during the
reconstruction or repairs of the buildings destroyed or damaged, the period of
construction for which rent shall be paid and advanced shall be as determined
by an architect selected by the Tenant, and approved by the Landlord, licensed
in the state in which the Rented Property is located, who shall have
supervision of the reconstruction or repair of the damaged buildings, as
hereinafter provided. The balance of the insurance proceeds remaining shall be
deposited in the joint account of the Landlord and the Tenant and mortgagee, if
any mortgagee there be, in a bank in the City in which the Rented Property is
located, designated by the Landlord. The sum so deposited in said account shall
be available to the Tenant for the

 

12

 

reconstruction or repairs, as
the case may be, of any of the buildings or improvements on the above-described
property, damaged by fire or other casualty, for which the insurance money
shall be payable; provided, however, an estimate of the cost of the
reconstruction or repair, as the case may be, of the building or improvements
damaged by or destroyed by fire, windstorm or other casualty, shall be
submitted to the Landlord, in writing, within thirty (30) days from the date of
such casualty, by an architect selected by the Tenant, and approved by the
Landlord, licensed in the state in which the Rented Property is located, who
shall have supervision of such reconstruction or repair; and if there shall be
insufficient money in said account to cover the cost of the reconstruction or
repair of said building and improvements damaged by such casualty, the Tenant
may either deposit an additional sum of cash, equal to the cost of said
construction, or furnish the Landlord with a good and sufficient Performance
and Payment Bond (complying with the requirements of Florida Statutes §713.23),
with corporate surety, by a surety company authorized to do business in the
state in which the Rented Property is located, as approved by the Landlord,
conditioned that the said work of repair and reconstruction is carried through
to completion in accordance with the terms hereof; and that all bills of work,
labor, services and/or material utilized in said repair or reconstruction are
paid, and waivers of lien are provided therefor. All monies paid from such
joint account for the reconstruction and/or repair of such building shall be
paid in accordance with the laws of the state in which the Rented Property is
located, pertaining to mechanics’ liens, but, in any event, shall be paid only
upon presentation of paid bills for labor and materials bestowed on said
construction in the amount of the requested sum to be paid; provided, however,
that a sum equal to ten percent (10%) shall be withheld until mechanics’ lien
affidavits are furnished in accordance with Subparagraph 14 E above.

 

D.   Nothing herein contained, however, shall be construed
to permit the Tenant to default in the payment of the rentals or other charges
herein stipulated to be paid or in the performance of the other covenants of
this Lease, and the Landlord may, at its option, in case of default in the
payment of such rentals or other charges, or default in the performance of any other
covenant in this Lease, proceed against the Tenant for the collection of such
rentals and charges, and recover and take possession of the Rented Property
therein described, in accordance with the provisions of this Lease herein set
forth, and without prejudice as to the right to the benefit of such insurance
money as security for the payment of such rentals and other charges. The Tenant
will forthwith reimburse said joint bank account and deposit therein for the
purpose of reconstruction or repair any amount so paid thereout on account of
any default of the Tenant.

 

E.   It is agreed by and between the Landlord and
the Tenant that any excess of money received from insurance remaining in the
joint bank account, as aforesaid, after the completion of the reconstruction or
repair of such building or buildings and after the receipt by the Landlord of
the releases of liens required by Subparagraph E of Paragraph 14 above, shall
be paid to Tenant, provided there be no default on the part of the Tenant in
the performance of the covenants of this Lease. However, if the Tenant has not
started reconstruction or repair of said building or buildings within a period
of time as specified in Subparagraph B of this Paragraph and has not prosecuted
the same thereafter with such dispatch as may be necessary to complete the same
within six (6) calendar months after the date of such damage or destruction of
any buildings, then the amount so collected or the balance thereof remaining in
the joint bank account, as the case may be, shall be paid to the Landlord, and
it will be at his option to terminate this Lease, and retain such amount as
liquidated damages, resulting from the failure upon the part of the Tenant to
promptly complete the work of the reconstruction or repair of said building or buildings
within the time specified as aforesaid.

 

F.   Any provision herein to the contrary
notwithstanding, should any complete or partial destruction or

 

13

 

damage by fire or other
casualty to improvements now or hereafter located on the Rented Property occur
during the last twelve (12) months of the Lease Term, as from time to time
extended, Landlord may, at Landlord’s sole discretion, waive the requirement
that Tenant repair or reconstruct the damage in question, accept the insurance
proceeds in lieu thereof, and terminate this Lease by giving written notice
thereof to Tenant. Provided Tenant is not in default under this Lease and has
the right to extend the term of this Lease for an additional five (5) year
period, as contemplated by §41 hereof, then Tenant may invalidate Landlord’s
termination of this Lease by giving written notice of exercise of its right to
extend within fifteen (15) days following receipt of Landlord’s Notice of
Termination. Tenant’s obligations under this paragraph 16 shall survive the
expiration or earlier termination of this Lease, except to the extent provided
to the contrary in this subsection.

 

17.    Maintenance of Premises.
The Tenant covenants that it will, at its own expense, keep all buildings and
improvements now or hereafter built on the Rented Property, and the equipment therein
contained, in good order, condition and repair, at all times during the term of
this Lease, normal wear and tear only excepted. Without limiting the foregoing,
the Tenant agrees, at its own expense, to keep and maintain the buildings and improvements
which may at any time be situated on the Rented Property during the term of
this Lease and all appurtenances thereunto belonging to or appertaining,
including, but not limited to, all fire escapes, stairs, sidewalks, steps,
including both the interior and exterior of the buildings, in good and
substantial condition and repair and in a clean and sanitary condition, and will
use, keep, and maintain such Rented Property and improvements thereon as well
as the sidewalks and parking areas around such buildings, in conformity to and
in compliance with all existing and future statutes, laws, orders, ordinances,
rulings the regulations applicable thereto, of the governmental authority having
jurisdiction thereof and will protect and indemnify the Landlord from and
against any loss, costs, damages and expenses occasioned by or arising out of
any accident or injury, or damage to any person whomsoever or whatsoever
happening, or done in or about or upon the said Rented Property or due directly
or indirectly to the construction, tenancy, use or occupation of said Rented
Property, or upon the sidewalks or parking areas adjoining the same by the Tenant
or any person or persons occupying, holding or claiming by, through or under it.
Tenant agrees that upon the expiration of the primary term hereof or any
extended term, it will surrender and deliver up the possession of the Rented
Property to Landlord in as good a state and condition of repair as when leased
by Tenant, ordinary wear and tear, damage by fire or other elements, acts of God,
war or governmental authority, alone excepted.

 

18.    Condition of Property.
Tenant is fully familiar with the physical condition of the Rented Property and
acknowledges that Tenant has received the Rented Property in good repair, order
and condition. Landlord makes no representation or warranty with respect to the
Rented Property and shall incur no liability for any latent or other defect
therein.

 

19.    Liens Created by Tenant.
Landlord’s interest in the Rented Property shall not be subject to liens for
improvements made by Tenant and Tenant has no power or authority to create any
lien or permit any lien to attach to the Rented Property or the present estate,
reversion or other estate of Landlord in the Rented Property as a result of
improvements made by Tenant or for any other cause or reason. All materialmen,
contractors, mechanics, and laborers and other person contracting with Tenant
with respect to the Rented Property are hereby charged with notice that such liens
are expressly prohibited and that they must look solely to Tenant to secure
payment for any work done or material furnished for improvements by Tenant or
for any other purpose during the Term of this
Lease. Tenant agrees that no lien shall be permitted to attach to the
Rented Property and agrees to transfer any claimed or asserted lien to a bond
or such other security permitted by law within twenty (20) days of the
assertion of any such lien or claim

 

14

 

of lien. If Tenant fails to
timely transfer said lien or said claim of lien, then Landlord may, at Landlord’s
option, discharge the lien or transfer the lien to bond or other security and
Tenant shall pay Landlord all amounts incurred in such transfer or discharge,
together with interest at the highest rate then permitted to be charged by
private parties under the laws of the State of Florida. Tenant shall advise all
persons furnishing designs, labor, material, or services to the Rented Property
in connection with Tenant’s improvements thereof of the provisions of this
Paragraph. With respect to any improvements made by Tenant to the Rented
Property, the Tenant shall notify the Contractor making such improvements as
provided for in Section 713.10, Florida Statutes, that this Lease expressly
provides that the interest of Landlord shall not be subject to liens for
improvements made by the Tenant. Tenant shall, at all times, indemnify Landlord
against and hold Landlord harmless with respect to any loss, cost, fee, charge,
expense (including attorney’s fees, whether incurred before, during, or after
trial, on appeal or in conjunction with post-judgment, bankruptcy or
administrative proceedings), lien or liability of any nature occurring or
accruing by virtue of any such work, labor, service or material performed or
furnished for or to Tenant.

 

20.    Transfer of Landlord’s
Interest. Landlord shall have the right to sell, mortgage or otherwise
dispose of Landlord’s interest in the Rented Property subject to this Lease.
Tenant shall, upon Landlord’s request, execute and deliver any instrument
necessary to cause this Lease to be subordinate to any mortgage or other
instrument of security which may hereafter be placed on the Rented Property by
Landlord.

 

21.    Quiet Enjoyment. If
Tenant shall promptly comply with the covenants of this Lease, Tenant shall
peaceably and quietly hold and enjoy the Rented Property for the Lease term.

 

22.    Right of Landlord to
Perform Tenant’s Covenants. If the Tenant shall fail to make any payment or
perform any acts required to be made or performed hereunder, the Landlord,
without notice to, or demand upon the Tenant, and without waiving or releasing
any obligation or default, may (but shall be under no obligation to) at any
time thereafter make such payment or perform such act for the account and at
the expense of the Tenant, and may enter upon the Rented Property for the
purpose and take all such action thereon as, in the opinion of the Landlord,
may be necessary or appropriate therefor. No such entry shall be deemed an
eviction of the Tenant. All sums so paid by the Landlord and all costs and
expenses (including, without limitation, attorneys’ fees and expenses) so
incurred, shall constitute additional rent hereunder and shall be paid by the
Tenant on demand.

 

23.    Events of Defaults: Termination.
If any one or more of the following events (Event of Default) shall occur:

 

A.  If the Tenant shall default in the due and
punctual payment of any installment of rent, or other sum payable by the Tenant
hereunder as and when due and payable in accordance with the provisions hereof,
and such default shall continue for more than ten (10) days after same is due;
or

 

B.  If the Tenant shall default in the due
performance of any covenant or condition hereof other than those referred to in
the foregoing Subparagraph A and such default shall continue for more than
thirty (30) days after written notice thereof from the Landlord or the
Assignee; or

 

C.  Abandonment or vacating of Rented Property by
the Tenant; or

 

D.  Tenant’s interest under this Lease being sold
or assigned under execution or other legal process; or

 

E.   Any of the goods or chattels of the Tenant
used in or incident to the operation of the Tenant’s business in the Rented

 

15

 

Property being seized, sequestered, or
impounded by virtue of or under authority of any legal proceeding, which
seizure, sequestration or impounding shall, in the opinion of Landlord,
materially affect the possible continuation of the operation of the Tenant’s
business in the Rented Property; then and in any such event (regardless of the
pendency of any proceeding which has or might have the effect of preventing the
Tenant from complying with the terms of this Lease) and in addition to such
other remedies as may be available to Landlord under this lease and applicable
law, the Landlord at any time thereafter may give a written notice to the
Tenant specifying a date (which shall be at least thirty [30] days after the
giving of such notice) on which this Lease shall terminate, and on such date,
subject to Paragraph 26 hereof relating to the survival of Tenant’s
obligations, the term of this Lease shall expire and terminate by limitation
and all rights of the Tenant under this Lease shall cease, unless before the
giving of such written notice (i) all arrears of rent and other sums payable by
the Tenant under this Lease and all costs and expenses (including, without
limitation, attorneys’ fees and expenses) incurred by or on behalf of the
Landlord in the Rented Property, shall have been paid by the Tenant, and (ii)
all other defaults at the time existing under this Lease shall have been cured
to the satisfaction of the Landlord. All costs and expenses incurred by or on
behalf of the Landlord (including, without limitation, attorneys’ fees and
expenses) occasioned by any default and all sums payable by the Tenant to
Landlord under this Lease shall constitute rent hereunder, and shall be paid
upon written demand therefor, although this shall not be construed to impose a
notice requirement or otherwise modify subsection 23A. above.

 

24.    Repossession, Etc. If
any event of default shall have occurred and be continuing for fifteen (15)
days after written notice from Landlord to Tenant of such event of default, the
Landlord, whether or not the term of this Lease shall have been terminated
pursuant to Paragraph 23 hereof, may enter upon and repossess the property by
force, summary proceedings, ejectment or otherwise, and may remove the Tenant
and all other persons and any and all property from the Rented Property,
provided that, if the term of this Lease shall not have been terminated
pursuant to Paragraph 23 hereof, the Landlord will give the Tenant at least fifteen
(15) days’ prior written notice of its intention to repossess the Rented
Property pursuant to this Paragraph. The Landlord shall be under no liability
for or by reason of any such entry, repossession or removal of any of Tenant’s
property.

 

25.    Reletting. At any
time or from time to time after the repossession of the Rented Property
pursuant to Paragraph 24 hereof, whether or not the term of this Lease shall
have been terminated pursuant to Paragraph 23 hereof, the Landlord may (but shall
be under no obligation to) relet the Rented Property or any part thereof for
the account of the Tenant, in the name of the Tenant or the Landlord or
otherwise, without notice to the Tenant, for such term or terms (which may be
grater or less than the period which would otherwise have constituted the
balance of the term of this Lease) and on such conditions (which may include
concessions or free rent and for such uses as the Landlord, in its uncontrolled
discretion, may determine, and may collect and receive the rents therefor. The
Landlord shall not be responsible for any failure to relet the Rented Property
or any part thereof or for any failure to collect any rent upon such reletting.

 

26.    Survival of Tenant’s
Obligations; Damages.

 

A.  No expiration or termination of the term of
this Lease pursuant to Paragraph 23 hereof or by operation of law or otherwise
(except as expressly provided herein), and no repossession of the Rented
Property pursuant to Paragraph 24 hereof or otherwise, shall relieve the Tenant
of its liability and obligations hereunder, all of which shall survive any such
expiration, termination or repossession; provided, however, that in no event
shall the total rent and other sums payable under this Lease by Tenant
including, but not limited to, all amounts payable under Subparagraph B and C
of this Paragraph exceed the total rent

 

16

 

and other sums which would be
payable under this Lease by Tenant in the absence of such expiration,
termination or repossession.

 

B.  In the event of any such expiration,
termination, or repossession, the Tenant will pay to the Landlord the rent and other
sums required to be paid by the Tenant up to the time of such expiration,
termination or repossession, and thereafter the Tenant, until the end of what
would have been the full term of this Lease in the absence of such expiration,
termination or repossession, and whether or not the Rented Property or any part
thereof shall have been relet, shall be liable to the Landlord for, and shall
pay to the Landlord, as liquidated and agreed current damages for the Tenant’s
default (i) the rent and other sums which would be payable under this Lease by
the Tenant in the absence of such expiration, termination or repossession, less
(ii) the net proceeds, if any, of any reletting (including, without limitation,
all repossession costs, brokerage commissions, legal expenses, attorneys’ fees,
employees’ expenses, reasonable alteration costs, and expenses of preparation
for such reletting). The Tenant will pay such current damages on the days on
which the rent would have been payable under this Lease in the absence of such
expiration, termination or repossession, and the Landlord shall be entitled to
recover the same from the Tenant on each such day.

 

C.  At any time after any such expiration,
termination, or repossession, whether or not the Landlord shall have collected any
current damages as aforesaid, the Landlord shall be entitled to recover from
the Tenant and the Tenant shall pay to the Landlord, on demand, as and for
liquidated and agreed final damages for the Tenant’s default and in lieu of all
current damages beyond the date of such demand, an amount equal to the excess,
if any, of (i) the rent and other sums which would be payable under this Lease
from the date of such demand (or, if it be earlier, the date to which the
Tenant shall have satisfied in full its obligations under Subparagraph A above
to pay current damages) for which would be the then unexpired term of this
Lease in the absence of such expiration termination or repossession, over (ii)
the then fair net rental value of the Rented Property for the same period, with
interest on the amount of such excess from the date of demand to the date of payment
at the rate of ten percent (10%) per annum. If any statute or rule of law shall
validly limit the amount of such liquidated final damages to less than the
amount above agreed upon, the Landlord shall be entitled to the maximum amount
allowable under such statute of rule or law.

 

27.    Tenant’s Waiver of Statutory Rights. In the event of any
termination of this Lease pursuant to Paragraph 23 hereof or any repossession
of the Rented Property pursuant to Paragraph 24 hereof, the Tenant, insofar as
permitted by law, waives any notice of re-entry of the institution of legal
proceedings to that end, and any right of redemption, re-entry or
repossessions.

 

28.    No Waiver by Landlord.
No failure by the Landlord to insist upon the strict performance of any term
hereof, or to exercise any right, power or remedy consequent upon a breach thereof,
and no acceptance of full or partial rent during the continuance of any such
breach, shall constitute a waiver of any such breach or any such term. No
waiver of any breach shall affect or alter this Lease, which shall continue in
full force and effect with respect to any other than existing or subsequent
breach.

 

29.    Remedies Cumulative. Each
right, power and remedy of the Landlord provided for in this Lease shall be
cumulative and concurrent and shall be in addition to every other right, power
or remedy provided for in this Lease or now or hereafter existing at law or in
equity or by statute or otherwise, and the exercise or beginning of the
exercise by the Landlord of any one or more of the rights, powers, or remedies
provided for in this Lease or now or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise
by the Landlord of any or all such other rights, powers or remedies.

 

17

 

30.    Acceptance of Surrender.
No surrender to the Landlord of this Lease or of the Rented Property or any
part thereof of any interest therein shall be valid or effective unless agreed
to and accepted in writing by the Landlord and no act of the Landlord other
than such a written agreement and acceptance by the Landlord shall constitute
an acceptance of any such surrender.

 

31.    Time is of the Essence.
It is understood and agreed between the parties hereto that time is of the
essence of all of the terms and provisions of this Lease.

 

32.    Entire Agreement. This
Lease contains the entire agreement between the parties hereto and all previous
negotiations leading thereto, and it may be modified only by an agreement in writing
signed and sealed by Landlord and Tenant.

 

33.    Notices. If a party
hereto desires to give notice to the other or to make tender to the other, such
notice or tender shall be in writing and shall be deemed given when it shall
have been deposited in the United States Mails, certified and addressed to the
party for whom it is intended as follows:

 

	
  FOR THE LANDLORD:

  	
   

  	
  ERNEST KLATT and VIOLET M.
  KLATT

  
	
   

  	
   

  	
  Post Office Box 1477

  
	
   

  	
   

  	
  Boynton Beach, FL 33425

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  SCHROEDER AND LARCHE, P.A.

  
	
   

  	
   

  	
  One Boca Place, Suite 319-A

  
	
   

  	
   

  	
  2255 Glades Road 

  
	
   

  	
   

  	
  Boca Raton, Florida 33431

  
	
   

  	
   

  	
  Attn:   Michael
  A. Schroeder, Esq.

  
	
   

  	
   

  	
   

  
	
  FOR THE TENANT:

  	
   

  	
  MITEY MITE RACE TRACKS,
  INC.

  
	
   

  	
   

  	
  1500 N.W. First Street,
  Suite 1-C

  
	
   

  	
   

  	
  Dania, FL 33004

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  IRWIN R. MOGERMAN

  
	
   

  	
   

  	
  1500 N.W. First Street, Suite 1-C

  
	
   

  	
   

  	
  Dania, FL 33004

  

 

34.    Gender. All words
used herein in the singular number shall extend to and include the plural
number, and all words herein used in the plural number shall extend to and
include the singular number, when the context or facts require it. All words
used herein any gender shall extend to and include all genders and any pronoun
shall be taken to refer to the person or persons intended, regardless of number
or gender.

 

35.    Benefit. This Lease
shall be binding upon and inure to the benefit of the heirs, successors, and
assigns of the parties hereto. The spouse of Landlord signs this Lease solely
for the purpose of complying with the laws of the state in which the Rented Property
is located, requiring the joinder of said spouse in the execution of this Lease
to release the right of curtesy, if any, or dower, if any, as the case may be,
and said spouse shall not be liable hereunder, except for the release of said
right of curtesy or dower, as the case may be.

 

36.    Compliance with Laws.
Tenant, at its sole cost and expenses, shall comply with and faithfully observe
all of the requirements of all municipal, county, state, federal and other authorities
having jurisdiction now in force or which may hereafter be in force pertaining
to concerning the construction, maintenance and repair of structures and
improvements upon the Rented Property or the use and occupancy of the Rented
Property or of any building or fixtures situated thereon.

 

37.    Taxes Excluded.
Nothing herein contained in Paragraph 6 requires, or shall be construed as
requiring Tenant to pay any income, gift, estate, inheritance, or similar tax
assessed against Landlord, its heirs, successors or assigns or any tax,
assessment,

 

18

 

charge or levy, however
described, upon the rent payable by Tenant under this Lease. But if any of the
foregoing shall become a lien on the Rented Property or any part thereof, or if
Tenant shall be required by law to pay any such tax, charge, or levy, or
interest or penalty thereon, or if Tenant shall be required to pay any such
tax, charge, or levy in order to protect its leasehold in the property from any
foreclosure or other proceeding that may be taken by any government or
governmental agency, office, or body, to recover such tax, charge, or levy as
may have been levied, assessed, or imposed as hereinabove set forth, or
interest or penalty thereon, he shall have and is hereby granted a lien against
the Rented Property by reason of said payment and to the extent thereof. Any
such amount so paid by Tenant for or on behalf of Landlord, its heirs or
successors or assigns shall be repaid by Landlord, its heirs, or successors or
assigns to Tenant, provided, however, that in the event Landlord, its heirs, or
successors or assigns refuses or fails to repay the amount on written demand
therefor, Tenant shall have the right to deduct the amount of said payment from
subsequent rental payments as may be due hereunder.

 

38.    Condemnation.

 

A.  If the whole or any part of the Rented
Property shall be taken or condemned by any competent authority for any public
use or purpose during the term of this Lease, whether by condemnation
proceedings or otherwise, the entire award made with respect to such taking or
condemnation shall be paid and belong to the Landlord, except for any award
which shall be made to Tenant as hereinafter provided for the then depreciated
value of any improvements constructed by Tenant upon the Rented Property and
for damage to or cost of removal of stock, equipment, trade fixtures, furniture
and other personal property of Tenant then situated on the Rented Property.

 

B.   In the event that a part of the Rented
Property shall be condemned and: (i) the part so condemned includes the building
and/or ten percent (10%) or more of the go-kart track on the Rented Property;
or (ii) the part so taken shall consist of twenty-five percent (25%) or more of
the total parking area of the Rented Property; or (iii) notwithstanding the
percentage taken, such condemnation shall materially and adversely affect the
use of the remaining portion of the use intended by this Lease; or (iv) such
condemnation shall result in cutting off or diverting direct access to the
Rented Property as such access is in existence at the time of the condemnation,
then and in any event, Tenant may at any time either prior to or within a
period of sixty (60) days after the date when possession of the Rented Property
shall be required by the condemning authority, elect to terminate the Lease.

 

C.   In the event there is a taking by eminent
domain, condemnation, or by any other means, and this Lease continues and is
not terminated by Tenant, this Lease shall terminate as to the part taken, the
rent payable hereunder shall be abated by the percentage that the Rented
Property is reduced by the eminent domain, condemnation or other taking and the
percentage in sub- subparagraphs (i) and (ii) of Subparagraph 38 B hereof shall
thereafter apply to the property remaining subject to this Lease.

 

D.   In the event there is taking of all or part
of the Rented Property, Tenant shall have the right to claim and recover from
the condemning authority, but not from the Landlord, such compensation as may
be separately awarded to Tenant on account of the then depreciated value of all
improvements constructed on the Rented Property by Tenant and on account of
damage to or cost of removal of, for the value of stock, equipment, trade
fixtures, furniture and other personal property belonging to Tenant and to receive
any award therefor.

 

39.    Attorney’s Fees.
Anything to the contrary stated in this Lease notwithstanding, if any action or
proceeding brought by either party against the other to enforce any of the
terms and conditions of this Lease, the prevailing party shall be entitled to
reasonable attorney’s fees (whether incurred before, during or

 

19

 

after
trial, on appeal or in conjunction with any post-judgment, bankruptcy or
administrative proceedings) in addition to costs of suit.

 

40.    Estoppel Certificate.
If Landlord’s prospective lender or purchaser shall desire a statement from
Tenant as to claims against Landlord on account of prepaid rent or otherwise,
Tenant shall deliver, in form reasonably required by such lender or purchaser,
an offset statement certifying (if such be the case) that this Lease is in full
force and effect and unmodified (or stating the modifications) and that there
are no defenses or offsets to its obligations under this Lease (or stating
those claimed by Tenant) and stating the date at which rent or other charges
have been paid by Tenant hereunder.

 

41.    Tenant’s Option to Extend
Term. If Tenant has not defaulted in the performance of the terms and
conditions of this Lease, Tenant shall have, and is hereby granted, three (3)
periods of five (5), years each, the first such renewal period shall be designated
First Renewal Term, the second renewal period shall be designated Second
Renewal Term, and the third renewal period shall be designated Third Renewal
Term. The rent for each renewal term shall be determined as set forth in
Paragraph 3 of this Lease, that is, if Landlord does not elect to reappraise
the Rented Property as set forth in said Paragraph 3, then the annual rental
shall be determined by the Consumer Price Index adjustment. Each such renewal
term shall be upon the same terms and conditions as herein set forth with
respect to the original term. Tenant must exercise its option with respect to
any next succeeding renewal term by giving Landlord written notice thereof not
less than one year prior to the expiration of the then current lease term or
renewal term. Tenant may not exercise its option with respect to the Second Renewal
Term unless it has exercised its option with respect to the First Renewal Term.
Tenant may not exercise its option with respect to the Third Renewal Term
unless it has exercised its option with respect to the Second Renewal Term.

 

42.    Conveyances by Landlord.
The term “Landlord” as used in this Lease, so far as the covenants and
obligations on the part of Landlord are concerned, shall mean only the owner or
owners of the Rented Property, and in the event of any transfer or transfers of
title thereto, the Landlord named (and in the case of any subsequent transfer,
the then grantor) shall be released from and after the date of such transfer of
all personal liability as respects the performance of any covenants or
obligations by the Landlord thereafter to be performed; provided that any funds
in the hands of the Landlord or the then grantor, at the time of such transfer,
in which Tenant has an interest shall be delivered to the grantee. It is the
intent of the foregoing that the Landlord’s covenants and obligations hereunder
shall be binding on Landlord, its successors and assigns, only during and in
respect of their respective successive periods of ownership of the Rented
Property.

 

43.    Surrender of Premises.
At the termination or expiration of this Lease, Tenant, if requested by
Landlord, shall execute and deliver to Landlord an appropriate release in
recordable form of all of the Tenant’s interests in the Rented Property.

 

44.    Lease Subject to
Declarations. Landlord represents to Tenant that it owns the Rented
Property in fee simple subject to easements, covenants, conditions and
restrictions and reservation of record which will not interfere with the
intended use of the Rented Property by Tenant.

 

45.    Short Form Lease. Both
Tenant and Landlord agree to execute a short form of this Lease in recordable
form setting forth the term of the Lease, the options contained herein and the prohibitions
against mechanics’ lien being filed against Landlord’s interest in the Rented
Property.

 

46.    Real Estate Commission.
Each party represents and warrants to the other that it has involved no other
broker or finder in the transaction to whom such other party might be subject

 

20

 

to a claim for a commission or fee with respect to
this Lease, and each party agrees to indemnify and hold harmless the other from
any breach of the foregoing representation and warranty by the indemnifying
party.

 

47.    Bankruptcy. If Tenant shall become
bankrupt or insolvent or unable to pay its debts as such become due, or file
any debtor proceedings or if Tenant shall take or have taken against either
party in any court pursuant to any statute either of the United States or of a
state a petition in bankruptcy or insolvency or for reorganization or for the
appointment of a receiver or trustee or all or a portion of Tenant’s property,
or if Tenant makes an assignment for the benefit of creditors, or petitions for
or enters into an arrangement, then this Lease shall terminate and the
Landlord, in addition to any other rights or remedies it may have, shall have
the immediate right of re-entry and may remove all persons and property from
the Rented Property and such property may be removed and stored in a public
warehouse or elsewhere at the cost of, and for the account of Tenant, all
without service of notice or resort to legal process and without being deemed
guilty or trespass, or becoming liable for any loss or damage which may be
occasioned thereby.

 

48.    Intentionally Omitted.

 

49.    Hazardous Waste.

 

A.  Prior Use.               Tenant
acknowledges that during the term of this Lease, Hazardous Material, gasoline,
and motor oil was and is still being used on the Rented Property as described
in the “Lease.” Tenant warrants to Landlord that such use by Tenant was duly
authorized by permits issued by the applicable Regulatory Agencies. Tenant
shall, at its expense, maintain and shall deliver, if so requested by Landlord,
the following:

 

(1)           Current
and valid permits authorizing the use of Hazardous Material on the Rented
Property issued by the Regulatory Agencies.

 

(2)           A
letter from the Regulatory Agencies addressed to Landlord certifying to
Landlord that their records do not reflect any complaints filed against Tenant for
or uncured violations of applicable regulations regarding the use of Hazardous Material
on the Rented Property.

 

(3)           Written
findings as to violations of applicable regulations or contamination based upon
a “phase one” site compliance study completed by an environmental consulting
and engineering firm approved by Landlord and paid for by Tenant. Tenant shall
not be required to pay for more than one (1) study every two (2) years. If such
findings disclose that Tenant’s use, storage and disposal of Hazardous Material
violates, or that the Rented Property is in violation of, any applicable
federal, state or County or municipal ordinances, laws, rules or regulations,
the conditions of use stated in the permits issued by the Regulatory Agencies,
or that there is existing contamination, then Tenant, at its expense, shall
immediately take and pursue, with due diligence and in good faith, all remedial
action recommended by such study in order that such firm can certify to
Landlord that the Rented Property is free of any such violation and
contamination. Alternatively, if the Rented Property has been determined to be contaminated,
Tenant shall immediately remedy the source of the contamination but may, at
Tenant’s election, apply to and enroll the Rented Property in any state or
federal contamination clean-up program, should it so elect. Tenant is required
to ensure the Rented Property continuously remains eligible under the enrolled program
and Tenant shall bear any and all costs not borne by the state or federal
contamination clean-up program. Tenant shall, likewise, at Tenant’s cost and
expense, obtain “phase two” studies or such other reports or cause to be conducted
such other tests and investigations as may be recommended by the consulting and
engineering firm or by representatives of Regulatory Agencies.

 

21

 

(4)           Further, as to
any such violation or contamination, Tenant shall indemnify, pay and save
Landlord harmless in accordance with the indemnification provision set forth in
Subparagraph G.

 

B.   Prohibition. After the date of
this Lease, Tenant shall not cause or permit any Hazardous Material to be
brought upon, kept, or used in or about the Rented Property except for such gasoline,
motor oil and such other materials as are necessary in or to Tenant’s business
and as permitted under permits issued by the applicable Regulatory Agencies.

 

C.   Use. Any Hazardous Material permitted
on the Rented Property as provided in Subparagraph B, and all containers therefor,
shall be used, kept, stored and disposed of in a manner that complies with all
federal, state and local laws or regulations applicable to this Hazardous Material
and in compliance with the conditions of use set forth in the permits issued by
the applicable Regulatory Agencies. As used in this Paragraph 49, Regulatory Agencies
mean the Florida Department of Environmental Regulations, Broward County
Department of Natural Resource Protection, and any other federal, state or
local agency which requires the issuance of a permit, or which has issued
regulations pertaining to the use, storage; transportation and disposal of
Hazardous Material.

 

D.   Discharge. Tenant shall not discharge,
leak or emit, or permit to be discharged, leaked or emitted any material into
the atmosphere, ground, sewer system, or any body of water, if that material
(as is reasonably determined by the Landlord, or any governmental authority) does
or may pollute or contaminate the same, or may adversely affect (a) the health,
welfare, or safety of persons, whether located on the Rented Property or
elsewhere, or (b) the condition, use or enjoyment of the building or any other real
or personal property located on the Rented Property.

 

E.   Compliance.

 

(1)           At the commencement of each Lease Year, Tenant shall
disclose, if so requested by Landlord, to Landlord the names and approximate
amounts of all Hazardous Material that Tenant intends to store, use or dispose
of on the Rented Property in the coming Lease Year. In addition, at the
commencement of each Lease Year, beginning with the second Lease Year, Tenant
shall disclose, if so requested by Landlord, to Landlord the names and amounts
of all Hazardous Materials that were actually used, stored or disposed of on
the Rented Property if those materials were not previously identified to
Landlord at the commencement of the previous Lease Year.

 

(2)           At the beginning of each Lease Year, Tenant shall deliver,
if so requested by Landlord, to Landlord the then valid and current permits
issued by the Regulatory Agencies to Tenant authorizing the use of Hazardous
Material on the Rented Property, and all compliance reports required to be made
by Tenant to the Regulatory Agencies during the preceding Lease Year. Such
compliance reports shall be made by Tenant to the Regulatory Agencies on a
timely basis and in full and complete compliance with the Regulatory Agencies
regulations pertaining thereto.

 

(3)           If during the term of this Lease, any Regulatory Agencies
or any other person files a complaint against Tenant, that Tenant is violating
any federal, state or local applicable regulation pertaining to the use,
storage, transportation or disposal of hazardous materials, the allegations
thereof shall be sent forthwith to Landlord. Tenant agrees to take immediate
steps to eliminate any such violations, and to have the Regulatory Agencies
monitoring such complaint certify to Landlord that the alleged violations in
the complaint have been eliminated and that the Tenant is in full and complete
compliance with the federal, state or local law under which the complaint was
filed. If Landlord has not received such certificate from the Regulatory
Agencies handling the complaint within one hundred twenty (120) days after the
issuance of the notice thereof, then Landlord may

 

22

 

elect to cure such violation, in which event, Tenant
agrees to pay, save harmless and indemnify Landlord for the cost it expends to
bring Tenant in compliance with the applicable law to eliminate the violations
thereunder.

 

(4)           During
the term of this Lease, Landlord or Landlord’s environmental consultants and
engineers shall have the right to come upon the Rented Property to inspect same
during reasonable business hours. In such event, Tenant agrees to give to Landlord
or its inspecting engineers all permits, compliance reports, notice of
violation and correspondence to and from the Regulatory Agencies. If Landlord
or Landlord’s environmental consultants and engineers determine from such
on-site inspection that Tenant is not complying with applicable regulations
governing the use, storage, transportation and disposal of Hazardous Material on
the Rented Property, then Landlord may, at its election, require a “phase one”
compliance site study to be made by such engineers. If such study discloses any
violations and evidence of contamination, then Tenant shall pay for such report
and for the cost of eliminating any violations of applicable law or any contamination.

 

(5)           Further,
upon the expiration or earlier termination of this Lease or upon the occurrence
of a default under this Lease by Tenant, Landlord may, at Landlord’s option,
require the removal of all underground storage tanks, if any, located on the
Rented Property and all hazardous substances and hazardous materials and the
containers storing same. Landlord may also obtain, at Tenant’s expense, a
complete and comprehensive site compliance study completed by an environmental
consulting and engineering firm approved by Landlord. If such report discloses violations
of regulations of the Regulatory Agencies or existing contamination, then
Tenant, at its expense, shall within ninety (90) days thereafter take all remedial
action recommended by such study in order that such firm can certify to
Landlord that the Rented Property is free from any such violation and
contamination.

 

F.    Definition. As used herein, the term “Hazardous Material”
means (a) any “hazardous waste” as defined by the Resource Conservation and
Recovery Act of 1976, as amended from time to time, and regulations promulgated
thereunder; (b) any “hazardous substance” as defined by the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended from
time to time, and regulations promulgated thereunder; (c) any oil, petroleum
products and their by-products; and (d) any substance that is or becomes
regulated by any federal, state or local governmental authority. “Tenant” as
used herein shall mean the Tenant, its employees or agents, or any other entity
who has possession of the Rented Property at any time during the term of this
Lease, if such other entity is controlled directly or indirectly by the Tenant,
and the Tenant and any other such entity shall be jointly and severally liable
under the provisions of Paragraph 49.

 

G.   Indemnification. Tenant hereby agrees that it shall
be fully liable for all costs and expenses related to the use, storage, and
disposal of Hazardous Material on the Rented Property, and the Tenant shall
give immediate notice to the Landlord of any violation or potential violation
of the provisions of this Paragraph 49. Tenant shall defend, indemnify and hold
harmless Landlord and all persons or entities who have at any time held the
Landlord’s interest under this Lease and its Agents, from and against any
claims, demands, penalties, fines, liabilities, settlements, damages, costs, or
expenses (including, without limitation, attorney’s and consultant’s fees,
court costs and litigation expenses, whether incurred before, during or after trial,
on appeal or in conjunction with post-judgment, administrative or bankruptcy
proceedings) of whatever kind or nature, known or unknown, contingent or
otherwise, arising out of or in any way related to (a) the use, storage,
presence, disposal, release or threatened release of Hazardous Material on,
from, or affecting the Rented Property; (b) any personal injury (including wrongful
death) or property damage (real or personal) arising out

 

23

 

of or related to that
Hazardous Material; (c) any lawsuit, quasi-judicial or administrative
proceeding brought or threatened, settlement reached or government order
relating to that Hazardous Material; or (d) any violation of laws, codes,
ordinances or regulations applicable thereto. The provisions of this Paragraph
49 shall be in addition to any other obligations and liabilities Tenant may
have to Landlord at law or equity and shall survive the transactions
contemplated herein and the termination of this Lease.

 

50.    Waiver of Trail by Jury.
To the extent permitted by law, Landlord and Tenant hereby waive trial by jury
in the event of litigation brought by either of the parties hereto against the other
in any matter arising out of or in any way connected with this Lease or the
Rented Property, or the improvements thereon.

 

51.    Merger. In no event
shall the leasehold interest, estate or rights, of Tenant hereunder, or of the
holder of any mortgage upon this Lease, merge with any interest, estate or
rights of Landlord in or to the Rented Property, it being understood that such
leasehold interest, estate, and rights of Tenant hereunder and of the holder of
any mortgage upon this Lease shall be deemed to be separate and distinct from
Landlord’s interest, estate and rights in and to the Rented Property,
notwithstanding that any such interest, estates or rights shall at any time or
times be held by or vested in the same person, corporation or other entity.

 

52.    Waiver of Liability. Anything
contained in this Lease to the contrary notwithstanding, Tenant agrees that
Tenant shall look solely to the estate and property of Landlord in the Rented Property
for the collection of any judgment (or other judicial process) requiring the
payment of money by Landlord in the event of any default or breach by Landlord
with respect to any of the terms and provisions of this Lease to be observed
and/or performed by Landlord; subject, however, to the prior rights of the
holder of any mortgage encumbering the Rented Property, from time to time, and
no other assets of Landlord shall be subject to levy, execution or other
judicial process for the satisfaction of Tenant’s claim.

 

53.    Corporate
Tenant. If Tenant is or will be a corporation, the persons executing this
Lease on behalf of Tenant hereby covenant, represent and warrant that Tenant is
a duly incorporated Florida corporation and the person or persons executing
this Lease on behalf of Tenant is an officer or officers of such Tenant and
that he or they, as such officers, were duly authorized to sign and execute
this Lease. Upon request of Landlord to Tenant, Tenant shall deliver to
Landlord documentation reasonably satisfactory to Landlord evidencing Tenant’s
compliance with the provisions of this paragraph.

 

54.    Relationship
of Parties. Nothing contained in this Lease shall be deemed to constitute
or be construed to create the relationship of principal and agent, partnership,
joint-venturers, or any other relationship between the parties hereto, other
than the relationship of Landlord and Tenant.

 

55.    Lease
in Full Force and Effect. Tenant hereby acknowledges that the Lease is in
full force and effect and is the valid and enforceable obligation and agreement
of the Tenant in accordance with the terms and provisions hereof. Tenant hereby
waives, discharges and releases forever all existing claims, defenses and
rights of setoff that Tenant may have against Landlord which may affect the
enforceability by Landlord of its rights and remedies under this Lease. Tenant
represents, warrants and covenants that there are no offsets, counterclaims or
defenses against its obligations under this Lease and that Tenant has full power
and authority and legal right to execute and deliver this Lease and to keep and
observe all the terms and conditions on its part hereunder to be observed and
performed.

 

24

 

EXECUTED this 16th
day of January, 1998.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
  /s/ Sheri
  Winchester-Lucas

  	
   

  	
  /s/ Ernest F. Klatt

  	
   

  
	
  SHERI WINCHESTER-LUCAS

  	
   

  	
  ERNEST F. KLATT a/k/a ERNEST KLATT

  
	
  Printed Name of Witness

  	
   

  
	
   

  	
   

  
	
  /s/ Michael A. Schroeder

  	
   

  	
   

  
	
  MICHAEL A. SCHROEDER

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  
	
   

  	
   

  
	
  /s/ Sheri Winchester-Lucas

  	
   

  	
  /s/ Violet Klatt

  	
   

  
	
  SHERI WINCHESTER-LUCAS

  	
   

  	
  VIOLET KLATT

  
	
  Printed Name of Witness

  	
   

  
	
   

  	
   

  
	
  /s/ Michael A. Schroeder

  	
   

  	
   

  
	
  MICHAEL A. SCHROEDER

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  
	
   

  	
   

  
	
  /s/ Sheri Winchester-Lucas

  	
   

  	
  /s/ Ernest F. Klatt

  	
   

  
	
  SHERI WINCHESTER-LUCAS

  	
   

  	
  ERNEST F. KLATT a/k/a ERNEST KLATT,

  
	
  Printed Name of Witness

  	
  BY VIOLET KLATT, HIS ATTORNEY IN 

  
	
   

  	
  FACT, UNDER THAT CERTAIN 

  
	
  /s/ Michael A. Schroeder

  	
   

  	
  DURABLE POWER OF ATTORNEY

  
	
  MICHAEL A. SCHROEDER

  	
   

  	
  DATED MARCH 22, 1991

  
	
  Printed Name of Witness

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  MITEY MITE RACE TRACKS, INC.,

  
	
  /s/ Jules Ross

  	
   

  	
  a Florida corporation

  
	
  JULES ROSS

  	
   

  	
   

  
	
  Printed Name of Witness

  	
  By:

  	
  /s/ Irwin R. Mogerman

  	
   

  
	
   

  	
   

  	
  IRWIN R. MOGERMAN

  
	
  /s/ Richard M. Mogerman

  	
   

  	
  Its:

  	
  President

  
	
  RICHARD M. MOGERMAN

  	
   

  	
   

  	
   

  
	
  Printed Name of Witness

  	
   

  	
   

  
					

 

25

 

 

26

 

FIRST AMENDMENT TO AMENDED AND RESTATED LEASE

 

THIS
FIRST AMENDMENT TO AMENDED AND RESTATED LEASE (this “First Amendment”) is dated
as of July 29, 1998, and is
entered into by and between ERNEST KLATT and VIOLET KLATT (collectively, “Landlord”),
and MITEY MITE RACE TRACKS, INC., a Florida corporation (“Tenant”)

 

R E C I T A L S

 

A.          Landlord and Lessee entered into that
certain Amended and Restated Lease dated as of April 1, 1997 (the “Original
Lease”) for the lease of approximately 7.83 acres of commercial land in the
City of Dania, County of Broward, State of Florida, as described more particularly
in Exhibit “A” attached hereto and made a part hereof (the “Demised
Premises”). The Original Lease as amended by this First Amendment shall be
referred to hereinafter as the “Lease.”

 

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

 

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

 

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

 

A G R E E M E N T

 

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

 

2.           RIGHT TO ENCUMBER. Notwithstanding
anything to the contrary contained in the Original Lease, Tenant may, without
Landlord’s consent, grant to Institutional Lenders, as hereinafter defined, a
first priority mortgage or security interests in Tenant’s Interest for the
benefit of a mortgagee and any assignees thereof (each a “Leasehold Mortgagee”)
and assign the Lease and any sublease(s) thereunder, as collateral security
under a first priority Leasehold Mortgage, upon the condition that all rights
acquired under such Leasehold Mortgage shall be subject to each and all of the
covenants, conditions and restrictions set forth in the Lease, and to all
rights and interests of Landlord therein, none of which covenants, conditions
or restrictions is or shall be waived by Landlord by reason of the right given
to Tenant hereunder to mortgage or grant security interests in Tenant’s
Interest, except as otherwise expressly provided herein. Under no circumstances
shall Tenant have any right to encumber any portion of Landlord’s fee interest
in the Demised Premises. Notwithstanding anything to the contrary herein, any
Leasehold Mortgagee must be an “institutional lender”, which shall include any
savings bank, savings and loan association,

 

1

 

commercial
bank, trust company, credit union, insurance company, real estate investment
trust, pension fund, or other nationally recognized capital market lender (such
as Fleet Capital Corporation). It shall be a material default under the Lease
should Tenant grant other than a first priority mortgage or security interest
in Tenant’s Leasehold Estate or encumber that estate by granting a lien in favor of other than an
Institutional Lender.

 

3.            RIGHTS OF LEASEHOLD MORTGAGEE. Upon Tenant
and/or Tenant’s successors and assignees mortgaging or granting a security
interest in Tenant’s Interest, (a) provided that Landlord has been provided
with (i) certified copies of the Leasehold Mortgage and any amendments,
modifications or supplements thereto, and (ii) the name and address of the
Leasehold Mortgagee to be used for notice purposes, (b) provided the Mortgage
or security interest is a first priority lien and provided further that the
holder thereof is and at all times remains an Institutional Lender, and (c) so
long as such leasehold mortgage shall remain unsatisfied of record or until
written notice of satisfaction is given by the holder to Tenant, the following
provisions shall apply, :

 

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

 

b.            Landlord shall, upon serving Tenant
with any notice or other communication, whether of default or any other matter,
simultaneously serve a copy of such notice upon each Leasehold Mortgagee or its
appointed agent(s) that has notified Landlord in writing of its security
interest in Tenant’s Interest and its notice address, and no such notice or
other communication to Tenant shall be deemed given unless a copy is so served
upon the Leasehold Mortgagee or its appointed agent(s) in the manner provided
in the Lease for the giving of notice. Failure of Landlord to serve the foregoing
notice on Leasehold Mortgagee shall not constitute a default by Landlord under
the Lease but shall render the notice served on Tenant as ineffective until
such notice is served on Leasehold Mortgagee.

 

c.            In the event of any default by
Tenant under the Lease, the Leasehold Mortgagee shall have the same period,
after service of written notice upon such default, to remedy or cause to be
remedied the default complained of as Tenant has under the Lease for such
default, plus an additional thirty (30) days (ten (10) days in the case of a
monetary default), and Landlord shall accept such performance by or at the
instigation of such Leasehold Mortgagee as if same has been done by Tenant. Each
notice of default given by Landlord will state the amounts of whatever rent and
other payments herein provided for are then claimed to be in default. Tenant
hereby authorizes Landlord to accept performance by Leasehold Mortgagee without
prior notice to or consent by Tenant, and Tenant hereby knowingly, voluntarily
and irrevocably waives any claim against Landlord arising from such performance
and

 

2

 

agrees
to indemnify and hold Landlord harmless from all claims, demands, damages,
losses, costs and expenses, including reasonable attorneys’ fees, arising
therefrom.

 

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

 

e.            Except where the Leasehold Mortgagee
has become the Tenant, no liability for the payment of rent or the performance
of any of Tenant’s covenants and agreements under the Lease shall attach to or
be imposed upon the Leasehold Mortgagee, all such liability being hereby
expressly waived by Landlord, and if the Leasehold Mortgagee or its nominee or
designee becomes the Tenant under the Lease, all of the obligations and
liabilities of the Leasehold Mortgagee or its nominee or designee shall cease
and terminate upon assignment of the Lease in accordance with Paragraph 9 of
the Lease, provided all defaults under the Lease have been fully cured.

 

f.             Landlord, within ten (10) days
after a request in writing by Tenant or the Leasehold Mortgagee, shall furnish
a written statement, duly acknowledged, that the Lease is in full force and
effect and that there are no defaults thereunder by Tenant, or if there are any
defaults, such statement shall specify the defaults Landlord claims exist.

 

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

 

h.            Subject to the Leasehold Mortgagee’s
complying with the conditions of this First Amendment, to the Original Lease
not being in default and subject to the rights of Landlord under and full
compliance with the requirements regarding transfers, assignments and
subletting of the Demised Premises contained in the Original Lease, Landlord
hereby consents to: (i) the foreclosure of a Leasehold Mortgage, (ii) any sale
of Tenant’s interest in the Lease and the Demised Premises in connection with a
foreclosure, whether by judicial proceedings or by virtue of any power of sale
contained in the Leasehold Mortgage, (iii) any conveyance of Tenant’s interest
in the Lease and the Demised Premises from Tenant to the Leasehold Mortgagee or
its nominee or designee by virtue of or in lieu of foreclosure or other
appropriate proceedings, and (iv) if Leasehold Mortgagee or its nominee or
designee become the holder of Tenant’s interest in the Lease and the Demised
Premises, the conveyance of such interest by Leasehold Mortgagee or its nominee
or designee in accordance with the terms of the assignment provisions of the
Original Lease, except that all obligations and liabilities of the Leasehold
Mortgagee or its nominee or designee arising thereafter under such lease shall
cease and terminate upon such assignment; provided, however, that nothing
herein shall operate to release Leasehold Mortgagee or its nominee or designee
from such obligations or liabilities, if any, which arose prior to such
assignment.

 

3

 

5.             CONSENT TO ASSIGNMENT OF LEASE AND LEASEHOLD
MORTGAGE. Notwithstanding anything to the contrary contained in the Lease,
Landlord hereby consents to (i) the assignment of the Lease, all subleases
thereunder, if any, and Tenant’s leasehold interest in the Demised Premises to
FFP, which assignment to FFP shall be effective as of the date of set forth on
that certain Assignment and Assumption of Lease executed by Tenant and FFP, an
executed copy of which shall be promptly delivered to Landlord by Tenant, and
(ii) FFP’s granting of a first Leasehold Mortgage in favor of Fleet Capital
Corporation, as a Leasehold Mortgagee.

 

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

 

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

 

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

 

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

 

(Signature page follows)

 

4

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this
First Amendment as of the day and year first written above.

 

	
  TENANT:

  	
  Executed in the
  presence of:

  
	
   

  	
   

  
	
  MITEY MITE RACE TRACKS,
  INC., a

  	
   

  
	
  Florida corporation

  	
   

  
	
   

  	
  /s/ Richard M. Mogerman

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Jules Ross

  	
   

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  Print Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  LANDLORD:

  	
  Executed in the
  presence of:

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Ernest Klatt

  	
   

  	
   

  
	
  Ernest Klatt a/k/a Ernest
  F. Klatt

  	
  /s/ M. Larche

  	
   

  
	
   

  	
  Print Name:

  	
  Megan Larche

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Judithlynn Jocis

  	
   

  
	
   

  	
  Print Name:

  	
  JUDITHLYNN JOCIS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Violet Klatt

  	
   

  	
  /s/ M. Larche

  	
   

  
	
  Violet Klatt

  	
  Print Name:

  	
  Megan Larche

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Judithlynn Jocis

  	
   

  
	
   

  	
  Print Name:

  	
  JUDITHLYNN JOCIS

  	
   

  
								

 

5

 

 

EXHIBIT “A”

 

 

RECORDING
REQUESTED BY 

AND WHEN
RECORDED MAIL TO:

Paul,
Hastings, Janofsky & Walker LLP

555 South Flower Street, 23rd Floor

Los Angeles, California 90071

Attn: Rick S. Kirkbride, Esq.

 

SPACE ABOVE THIS LINE RESERVED
FOR RECORDER’S USE

 

ASSIGNMENT AND ASSUMPTION OF LEASES

(Bryan Oaks Center Leases)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASES (this “Assignment”)
is made and entered into on the 29th day of July, 1998 (the “Effective Date”), by and between BRYAN OAKS CENTER, INC., a
Florida corporation (“Assignor”),
and FESTIVAL FUN PARKS, LLC, a Delaware limited liability company (“Assignee”), with reference to the following facts:

 

A.            Assignor is the current landlord under those certain
leases more particularly described on Exhibit “A”
attached hereto (collectively, the “Leases”)
relating to certain real property located in the City of Dania, County of
Broward, State of Florida (collectively, the “Properties”).

 

B.            Assignor desires to assign to Assignee, as of the
Effective Date (as defined below), all of its right, title and interest in, to
and under the Leases, and Assignee desires to receive from Assignor such
assignment and to assume each and all of the obligations of Assignee as
landlord under the Leases to be performed following the Effective Date.

 

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

 

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

 

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

 

1

 

3.              Indemnification
by Assignor. Assignor for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignor Parties”) hereby indemnifies,
defends and holds Assignee (and each of the Assignee Parties (as defined
below)) wholly free and harmless from and against any and all claims, demands,
obligations, duties, liabilities, damages, expenses, indebtedness, debts,
breaches of contract, duty or relationship, acts, omissions, misfeasance,
malfeasance, causes of action, sums of money, accounts, compensation,
contracts, controversies, promises, damages, costs, losses and remedies
therefor, causes of action, rights of indemnity or liability of any type, kind,
nature, description or character whatsoever, and irrespective of how, why or by
reason of what facts, whether known or unknown, whether heretofore now existing
or hereafter arising, whether liquidated or unliquidated related to the Leases
or the Properties (collectively, “Claims”) which
Assignee may incur or which may be asserted against Assignee by reason of any
alleged obligation or undertaking of Assignor as landlord under the Leases,
which Claims arise from events occurring prior to the Effective Date.

 

4.             Indemnification
by Assignee. Assignee for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignee Parties”)
hereby indemnifies, defends and holds Assignor (and each of the Assignor
Parties) wholly free and harmless from and against any and all Claims which
Assignor may incur or which may be asserted against Assignor by reason of any alleged
obligation or undertaking of Assignee as landlord under the Leases, which
Claims arise from events occurring on or after the Effective Date.

 

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

 

6.             Attorneys’
Fees. If any dispute should arise between the parties hereto
regarding the terms or subject matter of this Assignment or the enforcement or
breach of such terms, then the party prevailing in such dispute, whether by
out-of-court settlement or final judicial determination, shall be entitled to
recover from the non-prevailing party all costs and expenses of such dispute
incurred by such prevailing party, including, without limitation, reasonable
attorneys’ fees.

 

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

 

2

 

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

 

	
  “ASSIGNOR”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  BRYAN OAKS CENTER, INC.,

  	
   

  
	
  a Florida corporation

  	
  /s/ Richard M. Mogerman

  	
   

  
	
   

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  JULES ROSS

  	
   

  	
  /s/ Michael A. Mogerman

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  MICHAEL A. MOGERMAN

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 

	
  “ASSIGNEE”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  FESTIVAL FUN PARKS, LLC,

  	
   

  
	
  a Delaware limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FEC Holding Company, Inc.

  	
   

  	
   

  	
   

  
	
  its sole member

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark C. Monaco

  	
   

  	
  /s/ Jean-Pierre Lachance

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  JEAN-PIERRE LACHANCE

  	
   

  
	
  Name:

  	
  MARK C. MONACO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  /s/ Doug Trussler

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  DOUG TRUSSLER

  	
   

  

 

3

 

	
  STATE OF FLORIDA

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF BROWARD

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 8th day of July 1998, by Jules Ross, the Vice President of Bryan
Oaks Center, Inc., a Florida corporation, who is personally known to me or who
produced                      as
identification.

 

	
  Notary Seal and Commission

  	
  /s/ Richard M. Mogerman

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
					

 

	
   

  	
  OFFICIAL NOTARY SEAL

  
	
   

  	
  RICHARD M. MOGERMAN

  
	
   

  	
  NOTARY PUBLIC STATE OF
  FLORIDA

  
	
   

  	
  COMMISSION NO. CC569344

  
	
   

  	
  MY COMMISSION EXP. JULY
  15, 2000

  

 

	
  STATE OF New York

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF Nassau

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 20th day of July, 1998, by Mark C. Monaco, the                      of Festival Fun Parks,
LLC, a Delaware limited liability company, who is personally known to me or who
produced                             
 as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Ellen S. Wissemann

  	
   

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  Ellen S. Wissemann

  
	
   

  	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
  7/28/99

  	
   

  	
   

  
						

 

ELLEN S. WISSEMANN

NOTARY PUBLIC, STATE OF NEW YORK

NO. 01W15062658

QUALIFIED IN NASSAU COUNTY

COMMISSION EXPIRES JULY 28, 1999

 

4

 

EXHIBIT “A”

 

LEASES

 

5

 

Exhibit “A”

 

1.                                      Lease Agreement dated February 10, 1998 by
and between Bryan Oaks Center, Inc. and Landmark Education Corporation.

 

2.                                      Lease Agreement dated February 3, 1997 by and
between Bryan Oaks Center, Inc. and South Florida Shredding, Inc.

 

3.                                      Lease Agreement dated August 11, 1995 by and
between Bryan Oaks Center, Inc. and Richardson Electronics, Ltd., Incorporated.

 

4.                                      Lease Agreement dated January 3, 1994 by and
between Bryan Oaks Center, Inc. and Bally Gaming, Inc.

 

5.                                      Lease Agreement dated September 15, 1995 by
and between Bryan Oaks Center, Inc. and Birmingham Vending Company.

 

6.                                      Lease Agreement dated October 31, 1994 by and
between Bryan Oaks Center, Inc. and Simrad Inc.

 

7.                                      Lease Agreement dated January 1, 1998 by and
between Bryan Oaks Center, Inc. and Nationwide Computer Systems, Inc.

 

8.                                      Lease Agreement dated September 30, 1994 by
and between Bryan Oaks Center, Inc. and All America Termite & Pest Control,
Inc.

 

9.                                      Lease Agreement dated June 12, 1996 by and
between Bryan Oaks Center, Inc. and Jimmy Jam Productions, Inc.

 

 

RECORDING REQUESTED BY 

AND WHEN RECORDED MAIL TO:

Paul, Hastings, Janofsky & Walker LLP

555 South Flower Street, 23rd Floor

Los Angeles, California 90071

A. [ILLEGIBLE] Rick S. Kirkbride, Esq.

 

SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

 

ASSIGNMENT AND ASSUMPTION OF LEASE

(Ackerly Communications of Florida, Inc.)

 

THIS
ASSIGNMENT AND ASSUMPTION OF LEASE (this “Assignment”)
is made and entered into on the 29th day of July, 1998 (the “Effective Date”),
by and between SECOND NATIONAL ACCEPTANCE CORP., a Florida corporation (“Assignor”), and FESTIVAL FUN PARKS, LLC, a Delaware limited
liability company (“Assignee”),
with reference to the following facts:

 

A.            Assignor is the current landlord
under that certain Lease Agreement dated February 13, 1997 entered into by and
between Assignor and ACKERLY COMMUNICATIONS OF FLORIDA, INC., a Florida
corporation (“Tenant”) (the “Lease”), for
the lease of certain real property located in the City of Dania, County of Broward,
State of Florida, and more particularly described on Exhibit “A”
attached hereto (the “Property”).

 

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

 

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

 

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

 

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

 

1

 

expense
or obligation of Assignor under the Lease arising prior to the Effective Date,
or attributable to such period.

 

3.           Indemnification
by Assignor. Assignor for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignor Parties”)
hereby indemnifies, defends and holds Assignee (and each of the Assignee
Parties (as defined below)) wholly free and harmless from and against any and
all claims, demands, obligations, duties, liabilities, damages, expenses,
indebtedness, debts, breaches of contract, duty or relationship, acts,
omissions, misfeasance, malfeasance, causes of action, sums of money, accounts,
compensation, contracts, controversies, promises, damages, costs, losses and
remedies therefor, causes of action, rights of indemnity or liability of any
type, kind, nature, description or character whatsoever, and irrespective of
how, why or by reason of what facts, whether known or unknown, whether heretofore
now existing or hereafter arising, whether liquidated or unliquidated related
to the Lease or the Property (collectively, “Claims”)
which Assignee may incur or which may be asserted against Assignee by reason of
any alleged obligation or undertaking of Assignor as landlord under the Lease,
which Claims arise from events occurring prior to the Effective Date.

 

4.             Indemnification
by Assignee. Assignee for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignee Parties”)
hereby indemnifies, defends and holds Assignor (and each of the Assignor
Parties) wholly free and harmless from and against any and all Claims which
Assignor may incur or which may be asserted against Assignor by reason of any alleged
obligation or undertaking of Assignee as landlord under the Lease, which Claims
arise from events occurring on or after the Effective Date.

 

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

 

6.             Attorneys’
Fees. If any dispute should arise between the parties hereto
regarding the terms or subject matter of this Assignment or the enforcement or
breach of such terms, then the party prevailing in such dispute, whether by out-of-court
settlement or final judicial determination, shall be entitled to recover from
the non-prevailing party all costs and expenses of such dispute incurred by
such prevailing party, including, without limitation, reasonable attorneys’
fees.

 

2

 

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

 

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

 

	
  “ASSIGNOR”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  SECOND NATIONAL ACCEPTANCE CORP.,

  	
   

  
	
  A Florida corporation

  	
  /s/ Michael A. Mogerman

  	
   

  
	
   

  	
  Print Name:

  	
  MICHAEL A MOGERMAN

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  JULES ROSS

  	
   

  	
  /s/ Richard M. Mogerman

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 

	
  “ASSIGNEE”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  FESTIVAL FUN PARKS, LLC,

  	
   

  
	
  a Delaware limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FEC Holding Company, Inc.

  	
   

  	
   

  	
   

  
	
  its sole member

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark C. Monaco

  	
   

  	
  /s/ Jean - Pierre Lachance

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  JEAN - PIERRE LACHANCE

  	
   

  
	
  Name:

  	
  MARK C. MONACO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  /s/ Doug Trussler

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  DOUG TRUSSLER

  	
   

  

 

3

 

	
  STATE OF FLORIDA

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF BROWARD

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 8th day of July, 1998, by Jules Ross, the Vice President of Second
National Acceptance Corp., a Florida corporation, who is personally known to me
or who produced                      as
identification.

 

	
  Notary Seal and Commission

  	
  /s/ Richard M. Mogerman

  
	
  Stamp

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
   

  	
  OFFICIAL NOTARY SEAL

  
	
   

  	
   

  	
  RICHARD M. MOGERMAN

  
	
   

  	
   

  	
  NOTARY PUBLIC STATE OF
  FLORIDA

  
	
   

  	
   

  	
  COMMISSION NO. CC569344

  
	
   

  	
  My Commission Expires:

  	
  MY COMMISSION EXP. JULY
  15, 2000

  
					

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

	
  STATE OF NEW YORK

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF NASSAU

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 20th day of July, 1998, by Mark C. Monaco, the                      of Festival Fun Parks,
LLC, a Delaware limited liability company, who is personally known to me or who
produced                             
 as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Ellen S. Wissemann

  	
   

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  Ellen S. Wissemann

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
  7/28/99

  	
   

  	
   

  
						

 

ELLEN S. WISSEMANN

NOTARY PUBLIC, STATE OF NEW YORK

NO. 01WI5082656

QUALIFIED IN NASSAU COUNTY

COMMISSION EXPIRES JULY 28, 1999

 

4

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF PROPERTY

 

5

 

 

 

RECORDING REQUESTED BY 

AND WHEN RECORDED MAIL TO:

Paul, Hastings, Janofsky & Walker
LLP 

555 South Flower Street, 23rd Floor

Los Angeles,
California 90071

Attn: Rick S.
Kirkbride, Esq.

 

SPACE
ABOVE THIS LINE RESERVED FOR RECORDER’S USE

 

ASSIGNMENT AND ASSUMPTION OF OPTION AND LEASE AGREEMENT

(BellSouth
Mobility, Inc.)

 

THIS
ASSIGNMENT AND ASSUMPTION OF OPTION AND LEASE AGREEMENT (this “Assignment”) is made and entered into on the 29th  day of July, 1998 (the “Effective
Date”), by and between SECOND NATIONAL ACCEPTANCE CORP., a Florida
corporation (“Assignor”), and
FESTIVAL FUN PARKS, LLC, a Delaware limited liability company (“Assignee”), with reference to the following facts:

 

A.            Assignor is the current landlord under that
certain Option and Lease Agreement dated February 4, 1991 entered into by and
between Assignor and BELLSOUTH MOBILITY, INC. (“Tenant”)
(the “Lease”), for the lease of certain real
property located in the City of Dania, County of Broward, State of Florida, and
more particularly described on Exhibit “A”
attached hereto (the “Property”).

 

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

 

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

 

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

 

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

 

1

 

3.             Indemnification by Assignor. Assignor for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignor Parties”) hereby
indemnifies, defends and holds Assignee (and each of the Assignee Parties (as
defined below)) wholly free and harmless from and against any and all claims,
demands, obligations, duties, liabilities, damages, expenses, indebtedness,
debts, breaches of contract, duty or relationship, acts, omissions,
misfeasance, malfeasance, causes of action, sums of money, accounts,
compensation, contracts, controversies, promises, damages, costs, losses and
remedies therefor, causes of action, rights of indemnity or liability of any
type, kind, nature, description or character whatsoever, and irrespective of
how, why or by reason of what facts, whether known or unknown, whether
heretofore now existing or hereafter arising, whether liquidated or
unliquidated related to the Lease or the Property (collectively, “Claims”)
which Assignee may incur or which may be asserted against Assignee by
reason of any alleged obligation or undertaking of Assignor as landlord under
the Lease, which Claims arise from events occurring prior to the Effective
Date.

 

4.             Indemnification by Assignee. Assignee for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignee Parties”) hereby
indemnifies, defends and holds Assignor (and each of the Assignor Parties)
wholly free and harmless from and against any and all Claims which Assignor may
incur or which may be asserted against Assignor by reason of any alleged
obligation or undertaking of Assignee as landlord under the Lease, which Claims
arise from events occurring on or after the Effective Date.

 

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

 

6.             Attorneys’ Fees. If any dispute should arise between the parties hereto regarding the
terms or subject matter of this Assignment or the enforcement or breach of such
terms, then the party prevailing in such dispute, whether by out-of-court
settlement or final judicial determination, shall be entitled to recover from
the non-prevailing party all costs and expenses of such dispute incurred by
such prevailing party, including, without limitation, reasonable attorneys’
fees.

 

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

 

2

 

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

 

	
  “ASSIGNOR”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  SECOND NATIONAL ACCEPTANCE CORP.,

  	
   

  
	
  a Florida corporation

  	
  /s/ Michael A. Mogerman

  	
   

  
	
   

  	
  Print Name:

  	
  Michael A. Mogerman

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Jules Ross

  	
   

  	
  /s/ Richard M. Mogerman

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Richard M. Mogerman

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 

	
  “ASSIGNEE”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  FESTIVAL FUN PARKS, LLC,

  	
   

  
	
  a Delaware limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FEC Holding Company, Inc.

  its sole member

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark C. Monaco

  	
   

  	
  /s/ Jean-Pierre Lachance

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Jean-Pierre Lachance

  	
   

  
	
  Name:

  	
  Mark C. Monaco

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  /s/ Doug Trussler

  	
   

  
	
   

  	
  Print Name:

  	
  Doug Trussler

  	
   

  

 

3

 

	
  STATE OF FLORIDA

  	
  :

  	
   

  
	
   

  	
  :

  	
   

  
	
  COUNTY OF BROWARD

  	
  :

  	
   

  

 

The foregoing instrument was acknowledged before me
this 8th day of July, 1998, by Jules Ross, the Vice President of
Second National Acceptance Corp., a Florida corporation, who is personally known
to me or who produced
                            
as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Richard M. Mogerman

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
  [SEAL]

  	
   

  
	
   

  	
   

  	
  OFFICIAL NOTARY SEAL

  	
   

  
	
   

  	
   

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
   

  	
  NOTARY PUBLIC STATE OF
  FLORIDA

  	
   

  
	
   

  	
   

  	
  COMMISSION NO. CC569344

  	
   

  
	
   

  	
   

  	
  MY COMMISSION EXP. JULY
  15, 2000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

	
  STATE OF New York

  	
  :

  	
   

  
	
   

  	
  :

  	
   

  
	
  COUNTY OF Nassau

  	
  :

  	
   

  

 

The foregoing instrument was acknowledged before me
this 20th day of July, 1998, by Mark C. Monaco, the
                                          
of Festival Fun Parks, LLC, a Delaware limited liability company, who is
personally known to me or who produced
                                                            as
identification.

 

	
  Notary Seal and Commission

  	
  /s/ Ellen S. Wissemann

  	
   

  	
   

  
	
  Stamp

  	
   

  	
  Print Name:

  	
  Ellen S. Wissemann

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
  7/28/99

  	
   

  	
   

  
							

 

ELLEN S. WISSEMANN

NOTARY PUBLIC, STATE OF NEW YORK

NO. 01WI5082656

QUALIFIED IN NASSAU COUNTY

COMMISSION EXPIRES JULY 28, 1999

 

4

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF PROPERTY

 

5

 

 

 

WILLIAMS. HATFIELD AND STONER. INC.

	
  2312
  WILTON DRIVE

  	
   

  	
  ENGINEERS • PLANNERS • SURVEYORS

  	
   

  	
  FORT LAUDERDALE, FLORIDA

  

 

Description

 

A parcel of land being a portion of Parcel A.
DANIA OFFICE PARK, as recorded in Plat Book 130, Page 29, of the Public Records
of Broward County, Florida, said parcel being more particularly described us
follows:

 

BEGIN at the Northeast corner of the said
Parcel A;

 

THENCE on plat bearing of S 87o46’58” W along the North line of the
said Parcel A, a distance of 749.84 feet;

 

THENCE S 45o00’00” W a distance of 22.08 feet to the Northeast corner
of Bell South Mobility Site DEXE;

 

THENCE S 02o13’02” E along the East line of said Bell
South Mobility Site DEXE a distance of 20.00 feet;

 

THENCE
N 45o00’00” E a distance
of 29.45 feet to a point on a line 15.00 feet South of and parallel with the
North line of said Parcel A;

 

THENCE N 87°46’58” E along said parallel line
a distance of 744.16 feet to the East line of said Parcel A;

 

THENCE N 01°09’03” W along said East line n
distance of 15.00 feet to the POINT OF BEGINNING;

 

Said land situate within the City of Dania, Florida,
containing 0.27 Acres (11,583 Square Feet), more or less.

 

102/LD2/090492

 

 

2

 

RECORDING REQUESTED BY 

AND WHEN RECORDED MAIL TO: 

Paul, Hastings, Janofsky & Walker LLP

65
South Flower Street, 23rd Floor 

Los Angeles, California 90071 

Attn: Rick S. Kirkbride, Esq.

 

SPACE
ABOVE THIS LINE RESERVED FOR RECORDER’S USE

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND SUBLEASE

(LaserTron,
Inc.)

 

THIS
ASSIGNMENT AND ASSUMPTION OF LEASE AND SUBLEASE (this “Assignment”) is made and entered into on
the 29th day of July, 1998 (the “Effective
Date”), by and between SECOND NATIONAL ACCEPTANCE CORP., a Florida
corporation (“SNAC”), CENTRIS,
INC., a Florida corporation (“Centris”)
(SNAC and Centris are sometimes collectively referred to herein as “Assignor”), and FESTIVAL FUN PARKS, LLC, a Delaware limited
liability company (“Assignee”),
with reference to the following facts:

 

A.            SNAC is the landlord, and Centris is the
tenant, under that certain Lease dated                        ,
19      (the “Lease”),
for the lease of certain real property located in the City of Dania, County of
Broward, State of Florida, and more particularly described on Exhibit “A” attached hereto (the “Property”).

 

B.            Centris and LASERTRON, INC., a New York
corporation (“LaserTron”) are parties to (i)
that certain Agreement dated July 31, 1997, and (ii) that certain Sublease
dated July 31, 1997, wherein Centris is the current sublandlord (but referred to
therein as “Tenant”) and LaserTron is the subtenant, with respect to the
Property (which Agreement and Sublease are collectively referred to herein as
the “Sublease”).

 

C.            SNAC and Centris each desire to assign to
Assignee, as of the Effective Date (as defined below), all of their respective
right, title and interest in, to and under the Lease and the Sublease, and
Assignee desires to receive from SNAC and Centris such assignment and to assume
each and all of the obligations of SNAC and Centris as under the Lease and
Sublease to be performed following the Effective Date.

 

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

 

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

 

1

 

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

 

2.             Assumption. Assignee hereby assumes, effective as of the
Effective Date, all obligations of (i) SNAC as landlord and tenant under the
Lease, and (ii) Centris as sublandlord under the Sublease, arising from and
after the Effective Date, and agrees to be bound by and perform all of SNAC’s
and Centris’ covenants, duties and obligations arising thereunder from and
after the Effective Date. Notwithstanding the foregoing, Assignee shall have no
obligation, liability or responsibility for any liability, cost, expense or
obligation of Assignor under the Lease or the Sublease arising prior to the
Effective Date, or attributable to such period.

 

3.             Indemnification by Assignor. Each of SNAC and Centris, for itself, its
(past and present) officers, directors, members, shareholders, attorneys, legal
representatives, and constituent parent, subsidiary and affiliate corporations
and each of their past and present partners, officers, agents and employees,
and each of their successors and assigns (collectively, the “Assignor Parties”) hereby jointly and severally indemnifies,
defends and holds Assignee (and each of the Assignee Parties (as defined
below)) wholly free and harmless from and against any and all claims, demands,
obligations, duties, liabilities, damages, expenses, indebtedness, debts,
breaches of contract, duty or relationship, acts, omissions, misfeasance, malfeasance,
causes of action, sums of money, accounts, compensation, contracts,
controversies, promises, damages, costs, losses and remedies therefor, causes
of action, rights of indemnity or liability of any type, kind, nature,
description or character whatsoever, and irrespective of how, why or by reason
of what facts, whether known or unknown, whether heretofore now existing or
hereafter arising, whether liquidated or unliquidated related to the Lease, the
Sublease or the Property (collectively, “Claims”)
which Assignee may incur or which may be asserted against Assignee by reason of
any alleged obligation or undertaking of SNAC and/or Centris under the Lease
and/or the Sublease, which Claims arise from events occurring prior to the
Effective Date.

 

4.             Indemnification by Assignee. Assignee for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignee
Parties”) hereby indemnifies, defends and holds Assignor (and each
of the Assignor Parties) wholly free and harmless from and against any and all
Claims which Assignor may incur or which may be asserted against Assignor by
reason of any alleged obligation or undertaking of Assignee under the Lease
and/or the Sublease, which Claims arise from events occurring on or after the
Effective Date.

 

2

 

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

 

6.             Attorneys’ Fees.
If any dispute should arise between the parties hereto regarding the terms or
subject matter of this Assignment or the enforcement or breach of such terms,
then the party prevailing in such dispute, whether by out-of-court settlement
or final judicial determination, shall be entitled to recover from the
non-prevailing party all costs and expenses of such dispute incurred by such
prevailing party, including, without limitation, reasonable attorneys’ fees.

 

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

 

8.             Merger. It
is the intention of the parties hereto that the interests of Assignee under the
Lease and the Sublease merge, such that the Lease shall hereafter be of no
further force or effect and the Sublease shall be deemed a direct lease between
LaserTron, as Tenant, and Assignee, as landlord and owner of the Property.

 

(Signature
page follows)

 

3

 

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

 

	
  “CENTRIS”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  CENTRIS, INC.

  	
   

  
	
  a Florida corporation

  	
  /s/ Richard M. Mogerman

  	
   

  
	
   

  	
  Print Name:

  	
  Richard M. Mogerman

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Jules Ross

  	
   

  	
  /s/ Joy Marquis

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Joy Marquis

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 

	
  “SNAC”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  SECOND NATIONAL ACCEPTANCE CORP.,

  	
   

  
	
  a Florida corporation

  	
  /s/ Richard M. Mogerman

  	
   

  
	
   

  	
  Print Name:

  	
  Richard M. Mogerman

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Jules Ross

  	
   

  	
  /s/ Joy Marquis

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Joy Marquis

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 

	
  “ASSIGNEE”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  FESTIVAL FUN PARKS, LLC,

  	
   

  
	
  a Delaware limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FEC Holding Company, Inc.

  its sole member

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark C. Monaco

  	
   

  	
  /s/ Jean-Pierre Lachance

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Jean-Pierre Lachance

  	
   

  
	
  Name:

  	
  Mark C. Monaco

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  /s/ Doug Trussler

  	
   

  
	
   

  	
  Print Name:

  	
  Doug Trussler

  	
   

  

 

4

 

	
  STATE OF Florida

  	
  :

  
	
   

  	
  :

  
	
  COUNTY OF Broward

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 10th day of JULY, 1998, by Jules Ross, the Vice President of Centris,
Inc. a Florida corporation, who is personally known to me or who produced
                                          
as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Richard M. Mogerman

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  Richard M. Mogerman

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
  OFFICIAL NOTARY SEAL

  	
   

  
	
   

  	
   

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
   

  	
  NOTARY PUBLIC STATE OF
  FLORIDA

  	
   

  
	
   

  	
   

  	
  COMMISSION NO. CC569344

  	
   

  
	
   

  	
   

  	
  MY COMMISSION EXP. JULY
  15, 2000

  	
   

  
								

 

 

	
  STATE OF Florida

  	
  :

  
	
   

  	
  :

  
	
  COUNTY OF Broward

  	
  :

  

 

 

The foregoing instrument was acknowledged before me
this 10th day of July, 1998, by Jules Ross, the Vice President of Second
National Acceptance Corp., a Florida corporation, who is personally known to me
or who produced
                                            
as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Richard M. Mogerman

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  Richard M. Mogerman

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OFFICIAL NOTARY SEAL

  	
   

  
	
   

  	
   

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
   

  	
  NOTARY PUBLIC STATE OF
  FLORIDA

  	
   

  
	
   

  	
   

  	
  COMMISSION NO. CC569344

  	
   

  
	
   

  	
   

  	
  MY COMMISSION EXP. JULY
  15, 2000

  	
   

  
							

 

 

	
  STATE OF New York

  	
  :

  
	
   

  	
  :

  
	
  COUNTY OF Nassau

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 20th day of July, 1998, by Mark C. Monaco, the
                                            
of Festival Fun Parks, LLC, a Delaware limited liability company, who is
personally known to me or who produced
                                            
as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Ellen S. Wissemann

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  Ellen S. Wissemann

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
  7/28/99

  	
   

  
					

 

ELLEN S. WISSEMANN

NOTARY PUBLIC, STATE OF NEW YORK

NO. 01WI5082656

QUALIFIED IN NASSAU COUNTY

COMMISSION EXPIRES JULY 28, 1999

 

5

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF PROPERTY

 

6

 

 

 

 

AMENDMENT TO LEASE AGREEMENT

 

This Amendment to Lease Agreement (“Amendment”) is dated this 29th day of July, 1998, by and between Second
National Acceptance Corp. (the “Lessor”) and Batter-Up of South Florida, Inc.
(the “Lessee”).

 

RECITALS

 

WHEREAS, Lessor and Lessee entered into that certain Lease Agreement
dated January, 1992 (the “Lease”);

 

WHEREAS Lessor and Lessee desire to amend the Lease by substituting the
attached Exhibit B for the Exhibit B originally attached to the Lease; and

 

WHEREAS Lessor and Lessee desire to reform the Lease so that all references
to Exhibit B contained therein conform to the new Exhibit B;

 

WHEREAS Lessor and Lessee desire to further reform the Lease to change
and substitute parties therein;

 

WITNESSETH

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and
undertakings and other good and valuable consideration, the adequacy of which
is hereby acknowledged, it is agreed:

 

1.                                       The above recitals are true and correct and
incorporated herein by reference.

 

2.                                       The Exhibit B attached hereto shall be
substituted for the original Exhibit B attached to the Lease.

 

3.                                       All references to and statements regarding
Exhibit B contained in the Lease are hereby amended to conform to the new
Exhibit B attached hereto.

 

4.                                       Concurrently with the execution of this
Amendment, Lessor is assigning the Lease, as amended by this Amendment, to
Festival Fun Parks, L.L.C., a Delaware limited liability company (“FFP”).
Lessee hereby consents to said assignment and agrees to attorn to FFP and
recognize FFP as Lessor under the Lease. The Lessee shall release original Lessor
and Guarantors from all obligations under the Lease.

 

5.                                       The Exhibit I attached hereto,
comprised of pages 8 through and including 11, as amended therein, are
incorporated herein. The amended paragraphs under the Lease are 17, 18, 19, 20
and 22.

 

1

 

6.             In all other respects, the Lease
remains unchanged, in full force and effect, and ratified by the undersigned.

 

 

IN WITNESS
WHEREOF, the parties hereto have set their hands and seal this day and year
first written above.

 

	
  WITNESSES:

  	
   

  	
  Batter-Up of South Florida, Inc.

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  (print name)

  	
  [ILLEGIBLE]

  	
   

  	
  Its:

  	
  President

  	
   

  
	
   

  	
   

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  
	
  (print name)

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Second National Acceptance Corp.

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  (print name)

  	
  [ILLEGIBLE]

  	
   

  	
  Its:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (print name)

  	
   

  	
   

  	
   

  

 

2

 

W/C TRI-COUNFY for:

9056035

Lawyers
Land Title Co.

312 Southeast 17th St. Second Floor 

Ft. Lauderdale, FL 33316

 

MAIL ALL TAX STATEMENTS TO:

Festival Fun Parks, LLC

104 West Anapamu Street, Suite G 

Santa Barbara, CA 93101

 

SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S
USE

 

ASSIGNMENT AND ASSUMPTION OF LEASE

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (this “Assignment”)
is made and entered into on the 29th day of July, 1998 (the “Effective Date”), by and between MITEY MITE RACE TRACKS,
INC., a Florida corporation (“Assignor”),
and FESTIVAL FUN PARKS, LLC, a Delaware limited liability company (“Assignee”), with reference to the following
facts:

 

A.            Assignor is the tenant under that certain Amended and
Restated Lease dated April 1, 1997 entered into by and between Assignor and
ERNEST KLATT and VIOLET KLATT (“Landlord”),
as amended by that certain First Amendment to Amended and Restated Lease
entered into between Assignor and Landlord as of the date but prior to the
execution hereof (as amended, the “Lease”), for
the lease of certain real property located in the City of Dania, County of
Broward, State of Florida, and more particularly described on Exhibit “A” attached hereto (the “Property”).

 

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

 

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

 

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

 

2.             Assumption.  Assignee hereby assumes, effective as of the
Effective Date, all obligations of Assignor as Tenant under the Lease whether
arising before or after the Effective Date and agrees to be bound by and
perform all of Tenant’s covenants, duties and obligations arising thereunder.
Notwithstanding the assignment and assumption herein, Assignor acknowledges
that it is and shall continue to be primarily liable for the performance

 

1

 

of all of Tenant’s covenants, duties and
obligations under the Lease and nothing herein shall be construed as a release
of Assignor with respect to such covenants, duties and obligations. Assignor
acknowledges and agrees that the Lease is in full force and effect, that the
Landlord is not in default thereunder and that there are no defenses or offsets
to the Tenant’s obligations under the Lease.

 

3.             Indemnification by
Assignor.  Assignor for
itself, its (past and present) officers, directors, members, shareholders,
attorneys, legal representatives, and constituent parent, subsidiary and
affiliate corporations and each of their past and present partners, officers,
agents and employees, and each of their successors and assigns (collectively,
the “Assignor Parties”) hereby indemnifies,
defends and holds Assignee (and each of the Assignee Parties (as defined
below)) wholly free and harmless from and against any and all claims, demands,
obligations, duties, liabilities, damages, expenses, indebtedness, debts,
breaches of contract, duty or relationship, acts, omissions, misfeasance,
malfeasance, causes of action, sums of money, accounts, compensation,
contracts, controversies, promises, damages, costs, losses and remedies
therefor, causes of action, rights of indemnity or liability of any type, kind,
nature, description or character whatsoever, and irrespective of how, why or by
reason of what facts, whether known or unknown, whether heretofore now existing
or hereafter arising, whether liquidated or unliquidated related to the Lease
or the Property (collectively, “Claims”)
which Assignee may incur or which may be asserted against Assignee by reason of
any alleged obligation or undertaking of Assignor as tenant under the Lease, which
Claims arise from events occurring prior to the Effective Date.

 

4.             Indemnification by Assignee. Assignee for itself, its (past and present)
officers, directors, members, shareholders, attorneys, legal representatives,
and constituent parent, subsidiary and affiliate corporations and each of their
past and present partners, officers, agents and employees, and each of their
successors and assigns (collectively, the “Assignee Parties”) hereby
indemnifies, defends and holds Assignor (and each of the Assignor Parties)
wholly free and harmless from and against any and all Claims which Assignor may
incur or which may be asserted against Assignor by reason of any alleged obligation
or undertaking of Assignee as Tenant under the Lease, which Claims arise from events
occurring on or after the Effective Date.

 

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

 

6.             Attorneys’ Fees. If any dispute should arise between the
parties hereto regarding the terms or subject matter of this Assignment or the
enforcement or breach of such terms, then the party prevailing in such dispute,
whether by out-of-court settlement or final judicial determination, shall be
entitled to recover from the non-prevailing party all costs and expenses of
such dispute incurred by such prevailing party, including, without

 

2

 

limitation, reasonable attorneys’ fees,
whether incurred before, during or after trial, on appeal or in conjunction
with administrative, post judgment, or bankruptcy proceedings.

 

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

 

(Signature
page follows)

 

3

 

 

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

 

	
  “ASSIGNOR”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  MITEY MITE RACE TRACKS, INC.,

  	
   

  
	
  a Florida corporation

  	
  /s/ Richard. M. Mogerman

  	
   

  
	
   

  	
  Print Name:

  	
  RICHARD. M. MOGERMAN

  	
   

  
	
  By:

  	
  /s/ Jules Ross

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Jules Ross

  	
   

  	
  /s/ Jean Viverito

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Jean Viverito

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 

	
  “ASSIGNEE”

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
  FESTIVAL FUN PARKS, LLC,

  	
   

  
	
  a Delaware limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  FEC Holding Company, Inc.

  	
   

  	
   

  	
   

  
	
   

  	
  a sole member

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Mark C. Monaco

  	
   

  	
  /s/ Jean-Pierre Lachance

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name:

  	
  Jean-Pierre Lachance

  	
   

  
	
  Name:

  	
  MARK C. MONACO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  /s/ Doug Trussler

  	
   

  
	
   

  	
  Print Name:

  	
  DOUG TRUSSLER

  	
   

  

 

4

 

CONSENT OF LANDLORD

 

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

 

Dated: July 29, 1998

 

 

	
  LANDLORD:

  	
  Executed in the presence of:

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Ernest Klatt

  	
   

  	
  /s/ M. Larche

  	
   

  
	
  Ernest Klatt a/k/a Ernest

  	
  Print Name:

  	
  Megan Larche

  	
   

  
	
  F. Klatt

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ JUDITH LYNN JOCIS

  	
   

  
	
   

  	
  Print Name:

  	
  JUDITH LYNN JOCIS

  	
   

  
					

 

 

	
  /s/ Violet Klatt

  	
   

  	
  /s/ M. Larche

  	
   

  
	
  Violet Klatt

  	
  Print Name:

  	
  Megan Larche

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ JUDITH LYNN JOCIS

  	
   

  
	
   

  	
  Print Name:

  	
  JUDITH LYNN JOCIS

  	
   

  

 

5

 

	
  STATE OF FLORIDA

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF BROWARD

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 27th day of July, 1998, by Jules Ross, the Vice President of
Mitey Mite Race Tracks, Inc., a Florida corporation, who is personally known to
me or who produced                     
as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Richard M. Mogerman

  	
   

  
	
  Stamp

  	
  OFFICIAL NOTARY SEAL

  	
   

  	
  Print Name:

  	
  RICHARD M. MOGERMAN

  	
   

  
	
   

  	
  RICHARD M. MOGERMAN

  	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  NOTARY PUBLIC STATE OF
  FLORIDA

  	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
  COMMISSION NO. CC569344

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MY COMMISSION EXP. JULY
  15, 2000

  	
   

  	
   

  	
   

  	
   

  
							

 

	
  STATE OF New York

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF  Nassau 

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 20th day of July, 1998, by Mark C. Monaco, the                      of Festival Fun Parks,
LLC, a Delaware limited liability company, who is personally known to me or who
produced                             
 as identification.

 

	
  Notary Seal and Commission

  	
  /s/ Ellen S. Wissemann

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  Ellen S. Wissemann

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
  7/28/99

  	
   

  
					

 

ELLEN S. WISSEMANN

NOTARY PUBLIC, STATE OF NEW YORK

NO. 01W15062656

QUALIFIED IN NASSAU COUNTY

COMMISSION EXPIRES JULY 28, 1999

 

6

 

	
  STATE OF FLORIDA

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF PALM BEACH

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 21 day of July, 1998, by ERNEST KLATT, who is personally known to me.

 

	
  Notary Seal and Commission

  	
  /s/ Judith Lynn Jocis

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  JUDITH LYNN JOCIS

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
   

  	
   

  
					

 

	
  STATE OF FLORIDA

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
  COUNTY OF PALM BEACH

  	
   

  	
  :

  

 

The foregoing instrument was acknowledged before me
this 21 day of July, 1998, by VIOLET KLATT, who is personally known to me.

 

	
  Notary Seal and Commission

  	
  /s/ Judith Lynn Jocis

  	
   

  
	
  Stamp

  	
  Print Name:

  	
  JUDITH LYNN JOCIS

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  

  	
   

  
	
   

  	
   

  
					

 

7

 

 

EXHIBIT “A”

 

8Exhibit
10.28

 

COMMERCIAL GROUND LEASE 

 

MARCH 29, 1999

 

 

LANDLORD:

 

REALTY INCOME CORPORATION
 A MARYLAND CORPORATION 

DOING BUSINESS IN FLORIDA AS 

REALTY INCOME PROPERTIES, INC.

 

 

TENANT:

 

FESTIVAL FUN PARKS, LLC, 

A DELAWARE LIMITED LIABILITY COMPANY

 

 

PREMISES
LOCATION:

 

GRAND
PRIX RACE-O-RAMA 

1500 N.W. FIRST STREET 

DANIA, FL 33004

 

 

COMMERCIAL GROUND LEASE

 

TABLE OF CONTENTS

 

	
  RECITALS

  	
  1

  
	
  1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
  1.1

  	
  Lease
  Year

  	
  1

  
	
   

  	
  1.2

  	
  Hazardous
  Material

  	
  1

  
	
   

  	
  1.3

  	
  Environmental
  Law

  	
  2

  
	
  2.

  	
  PREMISES

  	
  2

  
	
  3.

  	
  TERM

  	
  2

  
	
   

  	
  3.1

  	
  Term

  	
  2

  
	
   

  	
  3.2

  	
  First
  Option to Extend

  	
  2

  
	
   

  	
  3.3

  	
  Second
  Option to Extend

  	
  3

  
	
   

  	
  3.4

  	
  Third
  Option to Extend

  	
  3

  
	
   

  	
  3.5

  	
  Fourth
  Option to Extend

  	
  3

  
	
   

  	
  3.6

  	
  Fifth
  Option to Extend

  	
  3

  
	
  4.

  	
  MONTHLY
  RENT

  	
  3

  
	
   

  	
  4.1

  	
  Net-Net-Net
  Lease

  	
  3

  
	
   

  	
  4.2

  	
  Monthly
  Rent

  	
  4

  
	
   

  	
  4.3

  	
  Monthly
  Rent During the Extension Periods

  	
  4

  
	
   

  	
  4.4

  	
  Additional
  Funding

  	
  4

  
	
  5.

  	
  ADDITIONAL
  RENT

  	
  5

  
	
   

  	
  5.1

  	
  Consumer
  Price Index Rental Increase

  	
  5

  
	
  6.

  	
  SUBSTITUTE
  RENT AND INCREASES

  	
  6

  
	
  7.

  	
  SECURITY
  DEPOSIT

  	
  6

  
	
  8.

  	
  USE
  OF THE PREMISES

  	
  6

  
	
  9.

  	
  PROPERTY
  TAXES, ASSESSMENTS AND UTILITIES

  	
  7

  
	
   

  	
  9.1

  	
  Tenant’s
  Required Payments

  	
  7

  
	
   

  	
  9.2

  	
  Payments
  Not Required by Tenant

  	
  8

  
	
   

  	
  9.3

  	
  Assessments

  	
  8

  
	
   

  	
  9.4

  	
  Utility
  Payments

  	
  8

  
	
   

  	
  9.5

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

  	
  8

  
	
   

  	
  9.6

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

  	
  9

  
	
   

  	
  9.7

  	
  Tax
  Period and Adjustment of Taxes

  	
  9

  
	
  10.

  	
  BUILDING
  and IMPROVEMENTS; TRADE FIXTURES

  	
  9

  
	
   

  	
  10.1

  	
  Building
  and Improvements

  	
  9

  
	
   

  	
  10.2

  	
  Depreciation
  and Investment Tax Credit

  	
  10

  
	
   

  	
  10.3

  	
  Trade
  Fixtures

  	
  10

  
	
   

  	
  10.4

  	
  Removal
  of Trade Fixtures

  	
  10

  
	
   

  	
  10.5

  	
  Financing
  of Tenant’s Property

  	
  11

  
	
  11.

  	
  MAINTENANCE
  OF THE PREMISES

  	
  11

  
	
   

  	
  11.1

  	
  Obligation
  to Maintain the Premises

  	
  11

  
	
   

  	
  11.2

  	
  Obligation
  to Keep the Premises Clear

  	
  11

  
	
  12.

  	
  REPAIRS
  AND ALTERATIONS

  	
  12

  
	
   

  	
  12.1

  	
  Right
  to Make Alterations

  	
  12

  
	
   

  	
  12.2

  	
  Tenant
  Shall Not Render Premises Liable for Any Lien

  	
  12

  
	
  13.

  	
  INDEMNITY
  AND INSURANCE

  	
  13

  
	
   

  	
  13.1

  	
  Indemnification

  	
  13

  
	
   

  	
  13.2

  	
  Insurance
  Company Requirement

  	
  13

  

 

(1)

 

	
   

  	
  13.3

  	
  Insurance
  Certificate Requirements

  	
  13

  
	
   

  	
  13.4

  	
  Minimum
  Acceptable Insurance Coverage Requirements

  	
  14

  
	
   

  	
  13.5

  	
  Additional
  Insureds

  	
  15

  
	
   

  	
  13.6

  	
  Mortgage
  -Endorsement

  	
  15

  
	
   

  	
  13.7

  	
  Renewals,
  Lapses or Deficiencies

  	
  15

  
	
  14.

  	
  PARTIAL
  AND TOTAL DESTRUCTION OF THE PREMISES

  	
  16

  
	
  15.

  	
  CONDEMNATION

  	
  16

  
	
   

  	
  15.1

  	
  Condemnation
  Damages

  	
  16

  
	
   

  	
  15.2

  	
  Termination
  of Lease Due to Condemnation

  	
  17

  
	
  16.

  	
  ASSIGNMENT
  AND SUBLETTING

  	
  17

  
	
   

  	
  16.1

  	
  Tenant’s
  Right of Assignment and Subletting

  	
  17

  
	
   

  	
  16.2

  	
  Landlord’s
  Option to Preserve Subtenancies

  	
  18

  
	
   

  	
  16.3

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

  	
  18

  
	
   

  	
  16.4

  	
  Continuing
  Obligation of Tenant

  	
  18

  
	
   

  	
  16.5

  	
  Fees
  and Costs with Regard to Proposed Assignment or Sublease

  	
  18

  
	
   

  	
  16.6

  	
  Landlord’s
  Right of Assignment

  	
  18

  
	
  17.

  	
  DEFAULT
  AND TERMINATION

  	
  19

  
	
   

  	
  17.1

  	
  Events
  of Default

  	
  19

  
	
   

  	
  17.2

  	
  Landlord’s
  Remedies

  	
  20

  
	
   

  	
  17.3

  	
  Late
  Charge

  	
  23

  
	
   

  	
  17.4

  	
  Right
  of Landlord to Re-Enter

  	
  23

  
	
   

  	
  17.5

  	
  Surrender
  of Premises

  	
  24

  
	
   

  	
  17.6

  	
  Interest
  Charges

  	
  24

  
	
   

  	
  17.7

  	
  Tenant’s
  Default

  	
  24

  
	
   

  	
  17.8

  	
  Default
  by Landlord

  	
  25

  
	
  18.

  	
  RIGHT
  OF INSPECTION

  	
  25

  
	
  19.

  	
  WAIVER
  OF BREACH

  	
  25

  
	
  20.

  	
  NOTICES

  	
  25

  
	
   

  	
  20.1

  	
  Notice
  Requirements

  	
  25

  
	
   

  	
  20.2

  	
  Payments
  Under Lease

  	
  26

  
	
  21.

  	
  RELATIONSHIP
  OF THE PARTIES

  	
  26

  
	
  22.

  	
  SUBORDINATION,
  ATTORNMENT AND ESTOPPEL

  	
  27

  
	
   

  	
  22.1

  	
  Subordination
  and Non-Disturbance

  	
  27

  
	
   

  	
  22.2

  	
  Attornment

  	
  27

  
	
   

  	
  22.3

  	
  Estoppel
  Certificate

  	
  28

  
	
  23.

  	
  TENANT’S
  FINANCIAL STATEMENTS

  	
  28

  
	
  24.

  	
  ATTORNEYS’
  FEES

  	
  29

  
	
   

  	
  24.1

  	
  Recovery
  of Attorneys’ Fees and Costs of Suit

  	
  29

  
	
   

  	
  24.2

  	
  Party
  to Litigation

  	
  29

  
	
   

  	
  24.3

  	
  Landlord’s
  Consent

  	
  29

  
	
  25.

  	
  CONSENT

  	
  29

  
	
  26.

  	
  AUTHORITY
  TO MAKE LEASE; COVENANT OF QUIET ENJOYMENT

  	
  30

  
	
   

  	
  26.1

  	
  Full
  Power and Authority to Enter Lease

  	
  30

  
	
   

  	
  26.2

  	
  Quiet
  Enjoyment

  	
  30

  
	
   

  	
  26.3

  	
  No
  Violation of Covenants and Restrictions

  	
  30

  
	
  27.

  	
  HAZARDOUS
  MATERIAL

  	
  30

  
	
   

  	
  27.1

  	
  Environmental
  Compliance

  	
  30

  
	
   

  	
  27.2

  	
  Tenant’s
  Responsibility for Hazardous Materials

  	
  31

  
	
   

  	
  27.3

  	
  Survival

  	
  31

  
	
  28.

  	
  GENERAL
  PROVISIONS

  	
  32

  
	
   

  	
  28.1

  	
  Gender;
  Number

  	
  32

  

 

(2)

 

	
   

  	
  28.2

  	
  Captions

  	
  32

  
	
   

  	
  28.3

  	
  Exhibits

  	
  32

  
	
   

  	
  28.4

  	
  Entire
  Agreement

  	
  32

  
	
   

  	
  28.5

  	
  Drafting

  	
  32

  
	
   

  	
  28.6

  	
  Modification

  	
  32

  
	
   

  	
  28.7

  	
  Joint
  and Several Liability

  	
  32

  
	
   

  	
  28.8

  	
  Governing
  Law

  	
  33

  
	
   

  	
  28.9

  	
  Attorneys’
  Fees

  	
  33

  
	
   

  	
  28.10

  	
  Time
  of Essence

  	
  33

  
	
   

  	
  28.11

  	
  Severability

  	
  33

  
	
   

  	
  28.12

  	
  Successors
  and Assigns

  	
  33

  
	
   

  	
  28.13

  	
  Independent
  Covenants

  	
  33

  
	
   

  	
  28.14

  	
  Information
  Provided

  	
  34

  
	
   

  	
  28.15

  	
  Limitation
  of Landlord’s Liability

  	
  34

  
	
   

  	
  28.16

  	
  No
  Lease Until Accepted

  	
  34

  
	
   

  	
  28.17

  	
  Counterparts

  	
  34

  

 

EXHIBIT A
- LEGAL DESCRIPTION OF REAL PROPERTY 

EXHIBIT B
- MEMORANDUM OF LEASE

 

(3)

 

COMMERCIAL GROUND LEASE

 

This Commercial Ground Lease (this “Lease”)
is dated as of March 29, 1999, between Realty Income Corporation, a
Maryland corporation doing business in Florida as Realty Income Properties, Inc.
(“Landlord”) and Festival Fun Parks, LLC, a Delaware limited liability company
(“Tenant”) with reference to the recitals set forth below.

 

RECITALS

 

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

 

Grand Prix Race-O-Rama

1500 N.W. First Street

Dania, FL 33004

 

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

 

1.       DEFINITIONS

 

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

 

1.1           Lease Year

 

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

 

1.2           Hazardous Material

 

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

 

1

 

1.3           Environmental Law

 

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

 

2.       PREMISES

 

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

 

3.       TERM

 

3.1           Term

 

The effective date (the “Commencement Date”) of
this Lease shall be the date upon which escrow is deemed closed pursuant to
that certain Purchase Agreement and Escrow Instructions of even date herewith
by and between Tenant, as seller, and Landlord, as buyer. Concurrently with
recording of the deed transferring ownership of the Premises to Landlord, the
Memorandum of Lease, a copy of which is attached hereto and incorporated herein
as Exhibit “B,” may be recorded by Tenant. The expiration date of the term
shall be last day of the month thirty-four and one-half (34 1/2) years
thereafter, unless extended as set forth in Sections 3.2, 3.3, 3.4, 3.5, and
3.6. References to the term of the Lease shall include extensions, if any.
Except as otherwise expressly stated, the terms and conditions of this Lease
shall remain in effect during any extension, renewal, or holdover of the
initial term.

 

3.2           First Option to Extend

 

On or before one hundred twenty (120) days
prior to the expiration of the term, and providing Tenant is not in default of
this Lease, Tenant may extend the term of this Lease for an additional one
hundred and twenty (120) months by notifying Landlord of such intention in
writing (the “First Extension Period”). The maximum term of the Lease with one
extension is forty-four and one-half (44 1/2) years.

 

2

 

3.3           Second Option to Extend

 

On or before one hundred twenty (120) days
prior to the expiration of the First Extension Period, and providing Tenant is
not in default of this Lease, Tenant may extend the term of this Lease for an
additional one hundred and twenty (120) months by notifying Landlord of such
intention in writing (the “Second Extension Period”). The maximum term of the
Lease with the second extension is fifty-four and one-half (54 1/2) years.

 

3.4           Third Option to Extend

 

On or before one hundred twenty (120) days
prior to the expiration of the Second Extension Period, and providing Tenant is
not in default of this Lease, Tenant may extend the term of this Lease for an
additional one hundred and twenty (120) months by notifying Landlord of such
intention in writing (the “Third Extension Period”). The maximum term of the
Lease with the third extension is sixty-four and one-half (64 1/2) years.

 

3.5           Fourth Option to Extend

 

On or before one hundred twenty (120) days
prior to the expiration of the Third Extension Period, and providing Tenant is
not in default of this Lease, Tenant may extend the term of this Lease for an
additional one hundred and twenty (120) months by notifying Landlord of such
intention in writing (the “Fourth Extension Period”). The maximum term of the
Lease with the third extension is seventy-four and one-half (74 1/2) years.

 

3.6           Fifth Option to Extend

 

On or before one hundred twenty (120) days
prior to the expiration of the Fourth Extension Period, and providing Tenant is
not in default of this Lease, Tenant may extend the term of this Lease for an
additional one hundred and twenty (120) months by notifying Landlord of such
intention in writing (the “Fourth Extension Period”). The maximum term of the
Lease with the third extension is eighty-four and one-half (84 1/2) years.

 

4.       MONTHLY RENT

 

4.1           Net-Net-Net Lease

 

This is a net-net-net lease. It is the intention of Landlord and Tenant
that the Monthly Rent (as defined below) and other sums and charges provided
herein shall be absolutely net to Landlord. Except as otherwise specifically
set forth in this Lease, Tenant shall pay all costs, charges, obligations,
assessments, and expenses of every kind and nature against or relating to the
Premises or the use, occupancy, area, possession, leasing, operation,
management, maintenance, or repair thereof, which may arise or become due
during the term hereof, or which may pertain to this transaction which concerns
the Premises, whether

 

3

 

or
not now customary or within the contemplation of the parties hereto, and which,
except for the execution and delivery of this Lease, would have been payable by
Landlord.

 

4.2           Monthly Rent

 

Tenant shall pay to Landlord as monthly rent
(“Monthly Rent”) Fifty-seven Thousand Seven Hundred Twenty-four and 45/100 Dollars
($57,724.45). Monthly Rent shall be payable by Tenant to Landlord in advance in
equal monthly installments commencing upon the Commencement Date and on the
first day of each calendar month thereafter, without prior notice, invoice,
demand, deduction, or offset whatsoever. Landlord shall have the right to
accept all rent and other payments, whether full or partial, and to negotiate
checks and payments thereof without any waiver of rights, irrespective of any
conditions to the contrary sought to be imposed by Tenant. All rent shall be
paid to Landlord at the address to which notices to Landlord are given. The
Monthly Rent for any partial month shall be prorated based upon a thirty (30)
day month.

 

4.3           Monthly Rent During the Extension Periods

 

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

 

4.4           Additional Funding

 

The parties hereto acknowledge that the
Premises is currently encumbered by that certain lease in favor of Batter-Up
South Florida, Inc., recorded October 29, 1992 in Official Records
Book 20016, page 234, Public Records of Broward County, Florida, as
amended on                , in O.R. Book        , Page     , Public Records of Broward County, Florida (“Batter-Up
Sublease”). Pursuant to Section 4.7 of that certain Purchase Agreement and
Escrow Instructions of even date herewith entered into between Tenant, as
Seller, and Landlord, as Buyer (the “Purchase Agreement”), as a condition to
Closing, Tenant was to obtain either: (i) a termination of the Batter-Up
Sublease; or (ii) amend the Batter-Up Sublease to provide that in the
event of a termination or the expiration of this Lease, the Batter-Up Sublease
shall automatically terminate (“Termination”). 
The parties acknowledged and agreed that Tenant, as Seller, would be
unable to obtain the Termination prior to Closing, and, as a result, the purchase
price was reduced in the amount of Five

 

4

 

Hundred
Thousand Dollars ($500,000). Landlord hereby agrees that at such time as Tenant
provides to Landlord either: (i) a written termination of the Batter-Up Sublease,
fully executed and in recordable form; or (ii) a written amendment, in a
recordable form satisfactory to Landlord, stating that the Batter-Up Sublease
shall automatically terminate in the event of a termination or expiration of
this Lease, it will, within thirty (30) days of Tenant’s written evidence of
such Termination, disburse the sum of Five Hundred Thousand Dollars ($500,000)
to Tenant. If and at such time as Landlord shall pay to Tenant the Five Hundred
Thousand Dollars ($500,000), the Monthly Rent payable hereunder immediately
shall be increased by Four Thousand Three Hundred Seventy Five Dollars
($4,375), and Tenant shall immediately commence payment of such amounts to
Landlord. The Monthly Rent (including the $4,375, if the $500,000 funding is
made by Landlord) shall be increased pursuant to Section 5.

 

5.       ADDITIONAL RENT 

 

5.1           Consumer Price Index Rental Increase

 

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

 

“Adjustment Date” shall mean, as the case may require, the first day of
the sixth (6th), eleventh (11th), sixteenth (16th), twenty-first (21st),
twenty-sixth (26th), and thirty-first (31st) Lease Years (and the first day of
each option period, if Tenant exercises its options to extend the term of the
Lease pursuant to Sections 3.2, 3.3, 3.4, 3.5, and 3.6); provided, however, if
the Commencement Date is other than the first day of the month, then “Adjustment
Date” shall mean, as the case may require, the first day of the first month
occurring after the sixth (6th), eleventh (11th), sixteenth (16th),
twenty-first (21st), twenty-sixth (26th), and thirty-first (31st) Lease Years
(and the first

 

5

 

day of each option period, if Tenant exercises its options to extend
the term of the Lease pursuant to Sections 3.2, 3.3, 3.4, 3.5, and 3.6).

 

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

 

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

 

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

 

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

 

6.       SUBSTITUTE
RENT AND INCREASES

 

This Section was deleted intentionally.

 

7.       SECURITY DEPOSIT

 

This Section was deleted intentionally.

 

8.       USE OF THE PREMISES

 

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

 

6

 

time remaining in the term. Tenant shall not perform any acts or carry
on any practices which may injure the Premises.

 

9.       PROPERTY TAXES, ASSESSMENTS AND UTILITIES

 

9.1           Tenant’s Required Payments

 

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

 

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

 

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

 

7

 

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

 

9.2           Payments Not Required by Tenant

 

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

 

9.3           Assessments

 

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

 

9.4           Utility Payments

 

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

 

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

 

Tenant, at Tenant’s sole cost and expense,
shall have the right, at any time, to seek a reduction in the assessed
valuation of the Premises or to contest any Taxes or utility charges that are
to be paid by Tenant; provided, however,
Tenant shall (i) give Landlord written notice
of any such intention to contest at least thirty (30) days before any
delinquency could occur; (ii) indemnify and hold Landlord harmless from
all liability on account of such contest; (iii) take such action as is
necessary to remove the effect of any lien which attached to the Premises or
the improvements thereon due to such contest, or in lieu thereof, at Landlord’s
election, furnish Landlord with adequate security for the amount of the Taxes
due plus interest and penalties; and (iv) in the event of a final determination
adverse to Tenant, prior to enforcement, foreclosure or sale, pay the amount
involved together with all penalties, fines, interest, costs, and expenses
which may have accrued. Tenant may use any means allowed by statute to protest
Taxes or utility charges as defined in this Section 9 as long as Tenant
remains current as to all other terms and

 

8

 

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

 

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

 

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

 

9.7           Tax Period and Adjustment of Taxes

 

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

 

10.     BUILDING AND IMPROVEMENTS; TRADE FIXTURES

 

10.1         Building and Improvements

 

The building and any improvements in, on, or
about the Premises and all additions, alterations, modifications, and
replacements thereto and thereof at all times during the term of this Lease
shall be the property of Tenant. During the term of

 

9

 

this
Lease and any extension term thereof, provided Tenant is not in default, Tenant
shall have the right to sell, transfer and convey any or all of Tenant’s
Property without Landlord’s consent. All right, title, and interest of Tenant
therein shall cease, expire, and vest exclusively in Landlord on the expiration
or any termination of this Lease.

 

10.2         Depreciation and Investment Tax Credit

 

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

 

10.3         Trade Fixtures

 

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

 

10.4         Removal of Trade Fixtures

 

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

 

10

 

Tenant,
at its sole cost and expense, immediately shall repair any damage occasioned to
the Premises by the removal of Tenant’s Property. Upon the expiration or
earlier termination of this Lease, Tenant shall leave the Premises in a neat
and clean condition, free of debris, normal wear and tear excepted.

 

10.5         Financing of Tenant’s Property

 

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

 

11.     MAINTENANCE OF THE PREMISES 

 

11.1         Obligation to Maintain the Premises

 

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

 

11.2         Obligation to Keep the Premises Clear

 

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

 

11

 

12.     REPAIRS AND ALTERATIONS

 

12.1         Right to Make Alterations

 

At all times during the term of this Lease,
except as provided in Section l7, Tenant shall have the right to make alterations,
additions, and improvements to the interior or exterior of the building. Any
alterations, additions, and improvements which may be made or installed by
Tenant, to the extent it is in existence at the termination or expiration of
the Lease, shall remain upon the Premises and, at the termination or expiration
of this Lease, shall be surrendered with the Premises to Landlord. Any
alteration, addition, or improvement shall be accomplished by Tenant in a good
workmanlike manner, in conformity with applicable laws and regulations. Upon
completion of any such work, Tenant shall provide to Landlord “as-built” plans,
building permits, governmental inspection reports and all other required governmental
approvals, and proof of payment of all labor and materials. Subject to Section 12.2,
Tenant shall pay when due all claims for such labor and materials and shall
give Landlord at least ten (10) days’ prior written notice of the
commencement of any such work. Landlord may enter upon the Premises, in such case,
for the purpose of posting appropriate notices, including, but not limited to,
notices of non-responsibility.

 

12.2         Tenant Shall Not Render Premises Liable for
Any Lien

 

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

 

12

 

13.     INDEMNITY AND INSURANCE

 

13.1         Indemnification

 

Tenant shall indemnify, defend and protect
Landlord, and hold Landlord harmless from any and all loss, cost, damage,
expense, liability (including, without limitation, court costs and reasonable
attorneys’ fees) incurred in connection with or arising at any time and from
any cause whatsoever in, or about the Premises, other than damages proximately
caused by reason of the negligence or willful misconduct of Landlord or its
agents and employees, including, without limiting the generality of the
foregoing: (i) any default by Tenant in the observance or performance of any of
the terms, covenants or conditions of this Lease on Tenant’s part to be
observed or performed; (ii) the use or occupancy of the Premises by Tenant or
any person claiming by, through, or under Tenant; (iii) the condition of the
Premises or any occurrence or happening on the Premises from any cause
whatsoever, or (iv) any acts, omissions, or negligence of Tenant or any person
claiming by, through, or under Tenant, or of the contractors, agents, servants,
employees, visitors, or licensees of Tenant or any such person, in, on, or
about the Premises, either prior to or during the Lease term (including,
without limitation, any holdovers in connection therewith), including, without
limitation, any acts, omissions or negligence in the making or performance of
any alterations. Tenant further agrees to indemnify and hold harmless Landlord,
Landlord’s agents, and the landlord or landlords under all ground or underlying
leases, from and against any and all loss, cost, liability, damage and expense
(including, without limitation, reasonable attorneys’ fees) incurred in
connection with or arising from any claims by any persons by reason of injury
to persons or damage to property occasioned by any use, occupancy, condition,
occurrence, happening, act, omission or negligence referred to in the preceding
sentence. The provisions of this Section shall survive the expiration or sooner
termination of this Lease with respect to any claims or liability occurring
prior to such expiration or termination, and shall not be limited by reason of
any insurance carried by Landlord and Tenant.

 

13.2         Insurance Company
Requirement

 

Insurance required by this Lease shall be
issued by companies holding a general policyholder’s rating of at least A/7 as
set forth in the most current issue of Best’s Insurance Guide and
authorized to do business in the state in which the Premises are located. If
this publication is discontinued, then another insurance rating guide or
service generally recognized as authoritative shall be substituted by Landlord.

 

13.3         Insurance Certificate Requirements

 

13.3.1      Tenant shall deliver to Landlord certificates evidencing the existence
and amounts of the

 

13

 

insurance
with loss payable clauses as required herein. No policy shall be cancelable or
subject to reduction of coverage or other modification except after thirty (30)
days’ prior written notice to Landlord.

 

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

 

13.4         Minimum Acceptable Insurance Coverage
Requirements

 

13.4.1      Tenant shall, at Tenant’s expense, obtain and keep in full force during
the term of this Lease a policy of combined single limit bodily injury and
property damage insurance on an occurrence basis insuring Tenant (with Landlord
as an additional insured) against any liability arising out of the ownership,
use, occupancy, or maintenance of the premises and all of its appurtenant areas.
The insurance shall be in an amount not less than Two Million Dollars
($2,000,000) per occurrence. Notwithstanding the foregoing Landlord may require
Tenant to increase the minimum limits of such commercial general liability
insurance from time to time during the term of the Lease to an amount
reasonably required by Landlord. The policy shall provide blanket contractual
liability coverage. However, the limits of the insurance shall not limit the
liability of Tenant. In addition, Tenant shall, at Tenant’s expense, obtain and
keep in full force during the term of this Lease umbrella liability policy in
an amount not less than Two Million Dollars ($2,000,000) in excess of primary
insurance. The insurance required to be carried by Tenant hereunder shall be
primary and not contributory to any other insurance maintained by Landlord.

 

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

 

14

 

Tenant’s
expense, obtain and keep in force during the term of this Lease a policy or
policies of insurance covering loss or damage due to perils caused by
earthquake and/or flood.

 

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

 

13.4.4      Tenant shall also obtain and keep in force during the term of this
Lease a worker’s compensation policy, insuring against and satisfying Tenant’s obligations
and liabilities under the worker’s compensation laws of the state in which the Premises
are located, including Employer’s Liability insurance, in an amount of not less
than One Million Dollars ($1,000,000).

 

13.5         Additional Insureds

 

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

 

Realty
Income Corporation, its officers, directors, and all successor(s), assignee(s),
subsidiaries, corporations, partnerships, proprietorships, joint ventures,
firms and individuals as heretofore, now or hereafter constituted on which the
named insured has the responsibility for placing insurance and for which
similar coverage is not otherwise more specifically provided.

 

13.6         Mortgage Endorsement

 

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

 

13.7         Renewals, Lapses or
Deficiencies

 

Tenant shall, at least thirty (30) days prior
to the expiration of such policies, furnish Landlord with renewal certificates
of insurance or renewal binders. Should Tenant fail to provide to Landlord the
renewals or renewal binders, or in the

 

15

 

event of a lapse or
deficiency of any insurance coverage specified herein for any reason, Landlord
shall notify Tenant of such lapse and, if not timely cured, Landlord may
immediately replace the deficient insurance coverage with a policy of insurance
covering the Premises of the type and in the limits set forth above. Upon
written notice from Landlord of the placement of insurance, Tenant shall
immediately reimburse Landlord for the total cost of premiums and expense of
such insurance placement. Tenant shall not do or permit to be done anything
which shall invalidate the insurance policies. If Tenant does or permits to be
done anything which shall increase the cost of the insurance policies, then
upon Landlord’s demand Tenant shall reimburse Landlord for any additional
premiums charged to Landlord as a consequence of its taking out such policies
attributable to any acts or omissions or operations of Tenant causing the
increase in the cost of insurance.

 

14.     PARTIAL AND TOTAL DESTRUCTION OF THE PREMISES

 

In the event any part or all of the Premises
shall at any time during the term of this Lease be damaged or destroyed,
regardless of cause, Tenant shall give prompt notice to Landlord. Tenant shall
repair and restore all of the Premises to their original condition, including
buildings and all other improvements, as soon as circumstances permit or in
Tenant’s reasonable discretion demolish and clear the improvements damaged so
that the Premises is in a safe and clean condition. Tenant shall hold Landlord
free and harmless from any and all liability resulting from such repairs and
restoration. Tenant shall pay for any cost of repair or restoration in excess
of the available insurance proceeds. Tenant is not entitled to any rent
abatement during or resulting from any disturbance on or partial or total
destruction of the Premises.

 

15.     CONDEMNATION

 

15.1         Condemnation Damages

 

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

 

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

 

16

 

improvements,
as determined by an appraiser, acceptable to Landlord and Tenant; and

 

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

 

15.2         Termination of Lease Due to Condemnation

 

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

 

16.     ASSIGNMENT AND SUBLETTING

 

16.1         Tenant’s Right of
Assignment and Subletting

 

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

 

17

 

16.2         Landlord’s Option to Preserve subtenancies

 

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

 

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

 

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

 

16.4         Continuing Obligation of Tenant

 

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

 

16.5         Fees and Costs with Regard to Proposed
Assignment or Sublease

 

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

 

16.6         Landlord’s Right of Assignment

 

Landlord shall be free at all times, without
need of consent or approval by Tenant, to assign its interest in this Lease
and/or to convey fee title to the Premises. Notwithstanding the foregoing,
Landlord shall give Tenant written notice of any assignee. Each conveyance by
Landlord of Landlord’s interest in the Lease or the Premises prior to expiration
or termination

 

18

 

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

 

17.     DEFAULT AND TERMINATION

 

17.1         Events of Default

 

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

 

17.1.1      Failure by Tenant to pay rent when due. Notwithstanding the foregoing,
or any other provision in this Lease to the contrary, for not-more than two (2)
occasions during any twelve (12) month period of the term of this Lease, as extended,
if any rental is not received when due, Landlord shall notify Tenant, in
writing, and Tenant shall have ten (10) days from the date of receipt of
Landlord’s notice to cure any such failure to pay rental. If rental is not
received within the ten (10) day period following Landlord’s notice, then
Tenant shall be in default.

 

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

 

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

 

17.1.4      To the extent permitted by law, a general assignment by Tenant or any
guarantor of the Lease for the benefit of creditors, or the filing by or against
Tenant or any guarantor of any proceeding under any insolvency or bankruptcy
law, unless in

 

19

 

the
case of a proceeding filed against Tenant or any guarantor the same is
dismissed within sixty (60) days, or the appointment of a trustee or receiver
to take possession of all or substantially all of the assets of Tenant or any
guarantor, unless possession is restored to Tenant or such guarantor within
(30) days, or any execution or other judicially authorized seizure of all or
substantially all of Tenant’s assets located upon the Premises or of Tenant’s
interest in this Lease, unless such seizure is discharged within thirty (30)
days.

 

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

 

17.2         Landlord’s Remedies

 

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

 

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

 

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

 

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

 

(ii)           The worth at the time of the award of the
amount by which the unpaid rent that would have been earned after the date of
termination of this Lease until the time of award exceeds the amount of

 

20

 

the
loss of rent that Tenant proves reasonably could have been avoided; and

 

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

 

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

 

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

 

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

 

If
Landlord elects to relet the Premises without terminating this Lease, any rent
received will be applied to the account of Tenant, not to exceed Tenant’s total
indebtedness to Landlord; no reletting by Landlord is considered to be for its
own account unless Landlord has notified Tenant in

 

21

 

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

 

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

 

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

 

22

 

default,
and all attorneys’ fees incurred by Landlord in enforcing any of Landlord’s
rights or remedies against Tenant.

 

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

 

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

 

17.3         Late Charge

 

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

 

17.4         Right of Landlord to Re-Enter

 

In the event of any termination of this
Lease, Landlord shall have the immediate right to enter upon and repossess the

 

23

 

Premises, and any personal property
of Tenant may be removed from the Premises and stored in any public warehouse
at the risk and expense of Tenant.

 

17.5         Surrender of Premises

 

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

 

17.6         Interest Charges

 

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

 

17.7         Tenant’s Default

 

If Tenant is in default of the Lease, then:

 

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

 

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

 

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

 

24

 

17.8         Default by Landlord

 

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

 

18.     RIGHT OF INSPECTION

 

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

 

19.     WAIVER OF BREACH

 

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

 

20.     NOTICES

 

20.1         Notice Requirements

 

All notices, requests, or demands herein
provided to be given or made, or which may be given or made by either party to
the other, shall be given or made only in writing and shall be

 

25

 

deemed to have been duly
given: (i) when delivered personally at the address set forth below, or to any
agent of the party to whom notice is being given, or if delivery is rejected,
when delivery was attempted; or (ii) on the date delivered when sent via Overnight
Mail, properly addressed and postage prepaid; or (iii) on the date sent via
facsimile transmission; or (iv) seventy-two (72) hours after the time the same
is deposited in the United States mail, properly addressed and first class
postage prepaid, return receipt requested. The proper address to which notices,
requests, or demands may be given or made by either party shall be the address
set forth at the end of this Section or to such other address or to such other
person as any party shall designate Such address may be changed by written
notice given to the other party in accordance with this Section.

 

If to Landlord:

 

Realty
Income Corporation

Attn:  Legal Department

220 West Crest Street

Escondido, CA 92025-1707

Phone number:  (760) 741-2111

Fax number:  (760) 741-8674

 

If to Tenant:

 

Festival
Fun Parks, LLC

Attn:  Property Management Department
18300 Von Karman Ave., Suite 900
Irvine, CA 92614
Phone number:  (949) 261-0404
Fax number:  (949) 261-1414

 

or to such other address or
to such other person as any party shall designate.

 

20.2         Payments Under Lease

 

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

 

21.     RELATIONSHIP OF THE PARTIES

 

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

 

26

 

22.     SUBORDINATION, ATTORNMENT AND ESTOPPEL

 

22.1         Subordination and Non-Disturbance

 

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

 

22.2         Attornment

 

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

 

27

 

22.3         Estoppel Certificate

 

Tenant shall execute and deliver to Landlord,
within twenty (20) days after receipt of Landlord’s request, any estoppel
certificate or other statement to be furnished to any prospective purchaser of
or any lender against the Premises. Such estoppel certificate shall acknowledge
and certify each of the following matters, to the extent each may be true: that
the Lease is in effect and not subject to any rental offsets, claims, or
defenses to its enforcement; the commencement and termination dates of the
term; that Tenant is paying rent on a current basis; that any improvements
required to be furnished under the Lease have been completed in all respects;
that the Lease constitutes the entire agreement between Tenant and Landlord
relating to the Premises; that Tenant has accepted the Premises and is in
possession thereof; that the Lease has not been modified, altered, or amended
except in specified respects by specified instruments; that Tenant has no
notice of any prior assignment, hypothecation, or pledge of rents or the Lease;
and such other matters as may reasonably be requested. Tenant shall also, upon
request of Landlord, certify and agree for the benefit of any lender against
the Premises or the building (“Lender”) that Tenant will not look to such
Lender: as being liable for any act or omission of Landlord; as being obligated
to cure any defaults of Landlord under the Lease which occurred prior to the
time Lender, its successors or assigns, acquired Landlord’s interest in the
Premises by foreclosure or otherwise, as being bound by any payment of rent or
additional rent by Tenant to Landlord for more than one (1) month in advance;
or as being bound by Landlord to any amendment or modification of the Lease
without Lender’s written consent. Failure to deliver the documents required
under this Section 22 in the time period required shall constitute an Event of
Default without the need for any notice or cure period.

 

23.     TENANT’S FINANCIAL STATEMENTS

 

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

 

28

 

24.     ATTORNEYS’ FEES

 

24.1         Recovery of Attorneys’
Fees and Costs of Suit

 

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

 

24.2         Party to Litigation

 

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

 

24.3         Landlord’s Consent

 

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

 

25.     CONSENT

 

Landlord shall have no liability for damages
resulting from, nor may Tenant terminate this Lease as a result of, Landlord’s
failure to give any consent, approval, or instruction reserved to Landlord.
Tenant’s sole remedy in any such event shall be an action for injunctive
relief.

 

29

 

26.     AUTHORITY TO MAKE LEASE; COVENANT OF QUIET
ENJOYMENT

 

26.1         Full Power and
Authority to Enter Lease

 

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

 

26.2         Quiet Enjoyment

 

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

 

26.3         No Violation of
Covenants and Restrictions

 

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

 

27.     HAZARDOUS MATERIAL

 

27.1         Environmental
Compliance

 

Tenant shall not cause or permit any
Hazardous Material to be brought upon, or used in or about the Premises by
Tenant, its agents, employees, contractors, or invitees, without the prior
written consent of Landlord (which Landlord shall not unreasonably withhold as
long as Tenant demonstrates to Landlord’s reasonable satisfaction that such
Hazardous Material is necessary or useful to Tenant’s business and will be
used, kept, and stored in a manner that complies with all laws relating to such
Hazardous Material.)  If Tenant breaches
the obligations stated in the preceding sentence, if the presence of Hazardous
Material on the Premises caused or permitted by Tenant results in contamination
of the Premises, or if contamination of the Premises by Hazardous Material
otherwise occurs and Landlord has not caused the contamination, then Tenant
shall indemnify, defend, and hold Landlord harmless from any and all claims,
judgments, damages, penalties, fines, costs, liabilities, or losses (including,
without limitation, diminution in value of the Premises, damages for the loss
or restriction on use of rentable or usable space or of any amenity of the
Premises, damages arising from any adverse impact on marketing of space of the
Premises, and sums paid in settlement of claims, attorneys’ fees, consultation
fees, and expert fees) which arise during or after the term of the Lease as a
result of such contamination. This indemnification of Landlord by Tenant
includes, without limitation, costs incurred in connection with any
investigation or site conditions or any cleanup, remedial, removal, or
restoration work required by any

 

30

 

federal, state, or local governmental agency or political subdivision
because of Hazardous Material present in the soil or ground water on or under
the Premises. Without limiting the foregoing, if the presence of any Hazardous
Material on the Premises not caused by Landlord results in any contamination of
the Premises, Tenant shall promptly take all actions at its sole expense as are
recommended by environmental engineers hired by Tenant or Landlord and are
necessary to return the Premises to the condition existing prior to the
introduction of any such Hazardous Material to the Premises; provided that
Landlord’s approval of such actions shall first be obtained, which approval
shall not be unreasonably withheld so long as such actions would not
potentially have any material adverse long-term or short-term effect on the
Premises.

 

27.2         Tenant’s
Responsibility for Hazardous Materials

 

Landlord and Tenant acknowledge that Landlord
may become legally liable for the costs of complying with Laws relating to
Hazardous Material which are not caused by Landlord or Tenant including the
following: (i) Hazardous Material present in the soil or ground water on the
Premises prior to or following the Commencement Date of the Lease; (ii) a
change in Laws which relate to Hazardous Material which make Hazardous Material
present on the Premises as of the Commencement Date, whether known or unknown
to Landlord, a violation of such new Laws; (iii) Hazardous Material that
migrates, flows, percolates, diffuses, or in any way moves on to or under the
Premises before or after the Commencement Date; (iv) Hazardous Material present
or under the Premises as a result of any discharge, dumping, or spilling
(whether accidental or otherwise) on the Premises by other tenants of the
Premises or their agents, employees, contractors, or invitees, or by others.
Accordingly, Landlord and Tenant agree that the cost of complying with Laws
relating to Hazardous Material on the Premises for which Landlord is legally
liable but did not cause, shall be the responsibility of and shall be paid by
Tenant and Tenant shall indemnify Landlord with respect to such Hazardous
Material. To the extent any such expense relating to Hazardous Material is
subsequently recovered or reimbursed through insurance, or recovery from responsible third
parties, or other action, Tenant shall be entitled to a reimbursement to the
extent it has paid the maintenance expense to which such recovery or
reimbursement relates.

 

27.3         Survival

 

Provisions of this Section 27 shall survive
termination of the tenancy.

 

31

 

28.     GENERAL PROVISIONS

 

28.1         Gender; Number

 

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

 

28.2         Captions

 

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

 

28.3         Exhibits

 

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

 

28.4         Entire Agreement 

 

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

 

28.5         Drafting

 

This Lease shall not be construed more
strictly against one party than the other because it may have been drafted by
one of the parties or its counsel, each having contributed substantially and
materially to the negotiation and drafting hereof.

 

28.6         Modification

 

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

 

28.7         Joint and Several Liability

 

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

 

32

 

28.8         Governing Law

 

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

 

28.9         Attorneys’ Fees

 

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

 

28.10       Time of Essence

 

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

 

28.11       Severability

 

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

 

28.12       Successors and Assigns

 

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

 

28.13       Independent Covenants

 

This Lease shall be construed as though the
covenants herein between Landlord and Tenant are independent and not dependent,
and Tenant hereby expressly waives the benefit of any statute to the contrary
and agrees that if Landlord fails to perform its obligations set forth herein,
Tenant shall not be entitled to make any repairs or perform any acts hereunder
at Landlord’s expense or to any offset of the rent or other amounts owing
hereunder against Landlord; provided, however, the foregoing shall in no way
impair the right of Tenant to commence a separate action against Landlord for
any violation by Landlord of the provisions hereof so long as notice is first
given to Landlord and any holder of a mortgage or deed of trust covering the
Building or all or any portion of the Project (of whose address Tenant has
theretofore been notified) and an opportunity is granted to

 

33

 

Landlord and such holder to correct such violation as provided above.

 

28.14       Information Provided

 

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

 

28.15       Limitation of Landlord’s
Liability

 

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

 

28.16       No Lease Until Accepted

 

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

 

28.17       Counterparts

 

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

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  Realty Income Corporation,

  a Maryland corporation

  doing business in Florida as

  Realty Income Properties, Inc.

  	
  Festival Fun Parks, LLC,
a Delaware
limited liability company

  

 

	
  By:

  	
  /s/ Gary Malino

  	
   

  	
  By:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
  Gary Malino

  	
   

  	
   

  
	
   

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
  Chief Financial Officer

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  3/29/99

  	
   

  	
  Date:

  	
  3/29/99

  	
   

  
							

 

34

 

COMMERCIAL GROUND LEASE

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

	
  PREMISES LOCATION:

  	
  Grand Prix Race-O-Rama

  
	
   

  	
  1500 N.W. First Street,

  
	
   

  	
  Dania, FL 33004

  

 

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

 

 

EXHIBIT “A”

PARCEL 1

 

THE
WEST 326.50 FEET (AS MEASURED AT RIGHT ANGLES) OF BLOCK 8 OF TIGERTAIL GROVE
RESUBDIVISION, AS RECORDED IN PLAT Book 30, AT Page 20, OF THE Public Records
OF BROWARD COUNTY, FLORIDA.

 

For descriptive purposes only
(+/-4.35 acres Westerly
“rear” portion of large go-kart track)

 

 

PARCEL 2

 

A PARCEL OF LAND BEING A
PORTION OF SECTION 33, TOWNSHIP 50 SOUTH, RANGE 42 EAST, SAID PARCEL ALSO BEING
A PORION OF DANIA OFFICE PARK, AS RECORDED IN PLAT BOOK 130, PAGE 29, PUBLIC
RECORDS OF BROWARD COUNTY, FLORIDA, SAID PARCEL BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS;

 

COMMENCE
AT THE NORTHWEST CORNER OF THE SOUTHEAST ONE QUARTER (SE1/4)
OF SAID SECTION 33;

 

THENCE
ON AN ASSUMED BEARING N87°46’58”E ALONG THE NORTH LINE OF SAID SOUTHEAST
ONE QUARTER (SE1/4°) A DISTANCE OF 40.00 FEET TO THE NORTHWEST
CORNER OF PARCEL “A” OF SAID DANIA OFFICE PARK, SAID POINT ALSO BEING THE POINT
OF BEGINNING:

 

THENCE
CONTINUE N 87°46’58” E ALONG SAID NORTH LINE A DISTANCE OF 608.27 FEET;

 

THENCE
S 02°13’02” E, A DISTANCE OF 639.01 FEET TO THE SOUTH LINE OF SAID PARCEL “A”
OF DANIA OFFICE PARK;

 

THENCE
S 87°49’00” W ALONG SAID SOUTH LINE A DISTANCE OF 557.85 FEET TO THE WEST LINE
OF SAID PARCEL “A”;

 

THENCE
N 01°21’24” W ALONG SAID WEST LINE A DISTANCE OF 32.50 FEET TO THE SOUTH LINE OF
SAID PARCEL “A”;

 

THENCE
S 87°49’00” W ALONG SAID SOUTH LINE A DISTANCE OF
50.01 FEET TO A POINT OF CURVATURE OF A NON-TANGENT CURVE CONCAVE TO THE EAST,
A RADIAL LINE OF SAID CURVE THROUGH SAID POINT HAVING A BEARING OF S 87°49’00”
W, FOLLOWING THREE COURSES BEING THE WESTERLY MOST LIMITS OF SAID PARCEL “A”;

 

THENCE
NORTHEASTERLY ALONG THE ARC OF SAID CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE
OF 20°32’38” AND A RADIUS OF 425.00 FEET FOR AN ARC DISTANCE OF 152.39 FEET TO
A POINT OF REVERSE CURVATURE OF A TANGENT CURVE CONCAVE TO THE WEST;

 

THENCE
NORTHEASTERLY, NORTHERLY AND NORTHWESTERLY ALONG THE ARC OF SAID CURVE TO THE
LEFT, HAVING A CENTRAL ANGLE OF 41°20’09” AND A RADIUS OF 425.00 FEET FOR AN
ARC DISTANCE OF 306.62 FEET TO A POINT OF REVERSE CURVATURE OF A TANGENT CURVE
CONCAVE TO THE EAST;

 

THENCE
NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE TO THE RIGHT HAVING A
CENTRAL ANGLE OF 21°37’07” AND A RADIUS OF 425.00 FEET FOR AN ARC
DISTANCE OF 160.36 FEET TO THE POINT OF BEGINNING;

 

 

PARCEL 3

 

A PARCEL OF LAND BEING A
PORION OF PARCEL “A” OF DANIA OFFICE PARK AS RECORDED IN PLAT BOOK 130, PAGE 29
OF THE PUBLIC RECORDS OF BROWARD COUNTY, FLORIDA, SAID PARCEL BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGIN
AT THE NORTHEAST CORNER OF SAID PARCEL “A”,

 

THENCE
ON A PLAT BEARING OF S 01°09’03” ALONG THE EAST LINE OF SAID PARCEL “A”
A DISTANCE OF 165.32 FEET;

 

THENCE
S 87°30’21” W DISTANCE OF 259.94 FEET;

 

THENCE
S 02°04’06” E A DISTANCE OF 266.72 FEET; 

 

THENCE
S 87°32’56” W A DISTANCE OF 191.63 FEET;

 

THENCE
S 02°11’00” E A DISTANCE OF 205.08 FEET TO THE SOUTH LINE OF SAID PARCEL “A”;

 

THENCE
S 87°49’00” W ALONG SAID SOUTH LINE A DISTANCE OF 205.67 FEET;

 

THENCE
N 02°13’01” W A DISTANCE OF 639.01 FEET TO THE NORTH LINE OF SAID PARCEL “A”;

 

THENCE
N 87°46’58” E ALONG SAID NORTH LINE A DISTANCE OF 661.12 FEET TO THE POINT OF
BEGINNING

 

SAID
LAND SITUATE WITHIN THE CITY OF DANIA, BROWARD COUNTY, FLORIDA

 

DISK: EXA-4APF

May
21, 1999

 

 

PARCEL 4

 

PARCEL
“A” OF COMMERCE CENTER OF DANIA, ACCORDING TO THE PLAT THEREOF, RECORDED IN
PLAT BOOK 135, PAGE 44 OF THE PUBLIC RECORDS OF BROWARD COUNTY, FLORIDA; SAID
LANDS SITUATE, LYING AND BEING IN BROWARD COUNTY, FLORIDA

 

For
descriptive purpose only: (+/-9.13 acres Vacant parcel adjacent to 1-95)

 

ALTA Owner’s Policy - L/H
Owner’s

Schedule
B

Form
ll90-36

 

 

COMMERCIAL GROUND LEASE

EXHIBIT “B”

 

Recording requested by, and

after recording return to:

 

Realty Income Corporation

Attn:  Legal Department

220 West Crest Street

Escondido, CA 92025-1707

 

MEMORANDUM OF LEASE

 

This Memorandum of Lease is made and entered
into as of March 29, 1999 by and between Realty Income Corporation, a Maryland
corporation doing business in Florida as Realty Income Properties, Inc. (“Landlord”)
and Festival Fun Parks, LLC, a Delaware limited liability company, (“Tenant”)
who agree as follows:

 

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

 

Grand Prix Race-O-Rama

1500 N.W. First Street

Dania, FL 33004

 

for a term of thirty-four and one-half (34 1/2) years, commencing on or
about the date the deed transferring ownership of the Premises to Landlord is recorded.
Landlord has a vested remainder interest in the improvements located on the Premises,
which will fully pass to Landlord, or its successors and assigns upon the
termination of the leasehold estate.

 

2.                                       Purpose of Memorandum of Lease. This Memorandum
of Lease is prepared for the purpose of recordation and does not modify the
provisions of the lease dated March 29, 1999 and entered into by and between
Landlord and Tenant (the “Lease”).

 

THE REMAINDER OF THIS PAGE WAS LEFT BLANK INTENTIONALLY

 

 

 

The Lease is incorporated
herein by reference. If there are any conflicts between the Lease and this
Memorandum of Lease, the provisions of the Lease shall prevail.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Realty Income Corporation,

  	
   

  	
  Festival Fun Parks, LLC,

  
	
  a Maryland corporation
  doing business

  in Florida as Realty Income Properties, Inc.

  	
   

  	
  a Delaware limited liability
  company

  

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
								

 

 

3. Except as specifically amended herein, all
terms and conditions of the Lease shall remain in full force and effect.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Realty Income Corporation,

  	
   

  	
  Festival Fun Parks, LLC,

  
	
  a Maryland corporation doing
  business in Florida as

  Realty Income Properties, Inc.

  	
   

  	
  a Delaware limited liability
  company

  

 

	
  By:

  	
  /s/ Gary Malino

  	
   

  	
  By:

  	
  [ILLEGIBLE]

  	
   

  
	
  Gary Malino

  	
   

  
	
  Senior Vice President 

  	
   

  
	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  10/4/99

  	
   

  	
  Date:

  	
  10/4/99

  	
   

  
								

 

 

AMENDMENT NUMBER ONE

 

COMMERCIAL GROUND LEASE

 

This Amendment Number One (this “Amendment)
to the Commercial Ground Lease (the “Lease”) is dated as of September 15, 1999
by and between Realty Income Corporation, a Maryland corporation doing business
in Florida as Realty Income Properties, Inc. (“Landlord”), and Festival Fun
Parks, LLC, a Delaware limited liability company (“Tenant”), with reference to
the following recitals:

 

1. RECITALS

 

A.                                   Landlord and Tenant entered into the Lease on
March 29, 1999 (the “Lease”). The Lease provides that Landlord lease to Tenant
and Tenant lease from Landlord that certain real property (the “Property”), which legal description is attached to
the Lease as Exhibit “A” and incorporated herein by reference, and is commonly
known as:

 

Grand Prix Race-O-Rama

1500 N.W. First Street

Dania Beach, FL 33004

 

B.                                     Landlord and Tenant desire to amend the Lease
as more particularly set forth herein:

 

NOW THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

 

2 . AMENDMENT

 

1.                                       Effective on the date upon which escrow is
deemed closed pursuant to that certain Acceptance of Assignment and Agreement
of Sale and Escrow Instructions of even date herewith by and between Tenant, as
Assignor, and Landlord, as Assignee, Section 4.2, Monthly Rent, shall be increased from Fifty-seven Thousand
Seven Hundred Twenty-four and 45/100 Dollars ($57,724.45) to Sixty-one Thousand
Five and 70/100 Dollars ($61,005.70).

 

2.                                       Exhibit “A,” Legal
Description  of Real Property, shall be replaced with Exhibit “A” attached hereto
and incorporated herein.

 

EXHIBIT “B”

 

1

 

EXHIBIT “A”

 

PARCEL 2

 

A PARCEL OF LAND BEING A PORTION OF SECTION 33, TOWNSHIP 50 SOUTH,
RANGE 42 EAST, SAID PARCEL ALSO BEING A PORION OF DANIA OFFICE PARK, AS RECORDED
IN PLAT BOOK 130, PAGE 29, PUBLIC RECORDS OF BROWARD COUNTY, FLORIDA, SAID
PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCE AT THE
NORTHWEST CORNER OF THE SOUTHEAST ONE QUARTER (SE1/4) OF SAID SECTION 33;

 

THENCE ON AN ASSUMED BEARING NB7°46’58”E ALONG THE NORTH LINE OF SAID
SOUTHEAST ONE QUARTER (SE1/4°) A DISTANCE OF 40.00 FEET TO THE NORTHWEST CORNER
OF PARCEL “A” OF SAID DANIA OFFICE PARK, SAID POINT ALSO BEING THE POINT OF
BEGINNING:

 

THENCE CONTINUE N 87°46’58” E ALONG SAID NORTH LINE A DISTANCE OF 608.27
FEET;

 

THENCE S 02°13’02” E, A
DISTANCE OF 639.01 FEET TO THE SOUTH LINE OF SAID PARCEL “A” OF DANIA OFFICE
PARK;

 

THENCE S 87°49’00” W ALONG SAID SOUTH LINE A DISTANCE OF 57.85 FEET TO
THE WEST LINE OF SAID PARCEL “A”;

 

THENCE 01°21’24” W ALONG SAID WEST L1NE A DISTANCE OF 32.50 FEET TO THE
SOUTH LINE OF SAID PARCEL “A”;

 

THENCE S 87°49’00” W ALONG SAID SOUTH LINE A DISTANCE OF 50.01 FEET TO A
POINT OF CURVATURE OF A NON-TANGENT CURVE CONCAVE TO THE EAST, A RADIAL LINE OF
SAID CURVE THROUGH SAID POINT HAVING A BEARING OF S 87°49’00” W,
FOLLOWING THREE COURSES BEING THE WESTERLY MOST LIMITS OF SAID PARCEL “A”;

 

THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE TO THE RIGHT, HAVING A
CENTRAL ANGLE OF 20°32’38” AND A RADIUS OF 425.00 FEET FOR AN ARC DISTANCE OF
152.39 FEET TO A POINT OF REVERSE CURVATURE OF A TANGENT CURVE CONCAVE TO THE
WEST;

 

THENCE NORTHEASTERLY, NORTHERLY AND NORTHWESTERLY ALONG THE ARC  OF SAID CURVE TO THE LEFT, HAVING A CENTRAL
ANGLE OF 41°20’09” AND A RADIUS
OF 425.00 FEET FOR AN ARC DISTANCE OF 306.62
FEET TO A POINT OF REVERSE CURVATURE OF A TANGENT CURVE CONCAVE TO THE
EAST;

 

THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE TO THE
RIGHT HAVING A CENTRAL ANGLE OF 21°37’07” AND A RADIUS OF 425.00 FEET FOR AN
ARC DISTANCE OF 160.36 FEET TO THE POINT OF BEGINNING;

 

2

 

PARCEL 1

 

THE WEST 326.50 FEET (AS MEASURED AT RIGHT ANGLES) OF BLOCK 8 OF
TIGERTAIL GROVE RESUBDIVISION, AS RECORDED IN PLAT Book 30, AT PAGE 20, OF THE
Public Records OF BROWARD COUNTY, FLORIDA.

 

For
descriptive purpose only: (+/-4.35 acres Westerly “rear” portion of large
go-kart track)

 

 

PARCEL 3

 

A PARCEL OF LAND BEING A
PORION OF PARCEL “A” OF DANIA OFFICE PARK AS RECORDED IN PLAT BOOK 130,  PAGE 29
OF THE PUBLIC RECORDS OF BROWARD COUNTY, FLORIDA, SAID PARCEL BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGIN
AT THE NORTHEAST CORNER OF SAID PARCEL “A”,

 

THENCE
ON A PLAT BEARING OF S 01°09’03” ALONG THE EAST LINE OF SAID PARCEL “A” A DISTANCE
OF 165.32 FEET;

 

THENCE
S 87°30’21” W DISTANCE OF 259.94 FEET;

 

THENCE
S 02°04’06” E A DISTANCE OF 266.72 FEET;

 

THENCE
S 87°32’56” W A DISTANCE OF 191.63 FEET;

 

THENCE
S 02°11’00” E A DISTANCE OF 205.08 FEET TO THE SOUTH LINE OF SAID PARCEL “A”;

 

THENCE
S 87°49’00” W ALONG SAID SOUTH LINE A DISTANCE OF 205.67 FEET;

 

THENCE
N 02°13’01” W A DISTANCE OF 639.01 FEET TO THE NORTH LINE OF SAID PARCEL “A”;

 

THENCE
N 87°46’58” E ALONG SAID NORTH LINE A DISTANCE OF 661.12 FEET TO THE POINT OF
BEGINNING

 

SAID
LAND SITUATE WITHIN THE CITY OF DANIA, BROWARD COUNTY, FLORIDA

 

DISK: EXA-6APF

May 21, 1999

 

 

PARCEL 4

 

PARCEL
“A” OF COMMERCE CENTER OF DANIA, ACCORDING TO THE PLAT THEREOF, RECORDED IN
PLAT BOOK 135, PAGE 44 OF THE PUBLIC RECORDS OF BROWARD COUNTY, FLORIDA; SAID
LANDS SITUATE, LYING AND BEING IN BROWARD COUNTY, FLORIDA

 

For descriptive purposes only: (+/- 9.13 acres Vacant
parcel adjacent to 1-95)

 

ALTA Owner’s Policy - L/H Owner’s

Schedule B

Form 1190-36

 

 

PARCEL 5

 

THE SOUTH 295 FEET OF TRACT “A” OF RE-AMENDED PLAT OF HOLLYWOOD PALMS,
ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 36, PAGE 46, OF THE
PUBLIC RECORDS OF BROWARD COUNTY, FLORIDA

 

 

AMENDMENT NUMBER TWO

 

COMMERCIAL GROUND LEASE

 

This Amendment Number Two (this “Amendment)
to the Commercial Ground Lease (the “Lease”) is dated as of November 10, 1999
by and between Realty Income Corporation, a Maryland corporation doing business
in Florida as Realty Income Properties, Inc. (“Landlord”), and Festival Fun
Parks, LLC, a Delaware limited liability company (“Tenant”), with reference to
the following recitals:

 

1.                    RECITALS

 

A.                                       Landlord and Tenant entered into the Lease on
March 29, 1999, and amended the Lease pursuant to that certain Amendment Number
One to Commercial Ground Lease on September 15, 1999. The Lease provides that
Landlord lease to Tenant and Tenant lease from Landlord that certain real
property (the “Property”), which legal description is attached to the Lease and
incorporated herein as Exhibit “A,” and is commonly known as:

 

Grand Prix Race-O-Rama

1500 N.W. First Street
Dania, Florida 33004

 

B.                                     Pursuant to Section 4.4, Additional
Funding, of the Lease, within thirty (30) days of Tenant’s written
evidence of a termination of that certain lease in favor of Batter-Up South Florida,
Inc., recorded October 29, 1992 in Official Records Book 20016, page 234,
Public Records of Broward County, Florida, as amended on                    ,
in O.R. Book                 ,
Page          , Public Records
of Broward County, Florida (“Batter-Up Sublease”), Landlord shall pay to Tenant
Five Hundred Thousand Dollars ($500,000) and the Monthly Rent shall immediately
increase from Sixty-one Thousand Five and 70/100 Dollars ($61,005.70) to
Sixty-five Thousand Three Hundred Eighty and 70/100 Dollars ($65,380.70).

 

C.                                     Landlord and Tenant desire to amend the Lease
as more particularly set forth herein:

 

NOW THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

 

2.                    AMENDMENT

 

1.                                       Effective on the date upon which Tenant
provides to Landlord the following documents (i) recordable Termination of The
Batter-Up Sublease; (ii) an Endorsement to Title deleting the

 

1

 

exception which references
the sublease and increases the policy coverage from Six Million Five Hundred
Ninety-seven Thousand Eighty and 30/100 Dollars ($6,597,080.30) to Seven
Million Ninety-seven Thousand Eighty 30/100 Dollars ($7,097,080.30); and (iii)
this executed Amendment; and Landlord delivers to Tenant via wire transfer or
check the sum of Five Hundred Thousand Dollars ($500,000)

 

Section 4.2, Monthly
Rent, shall be increased from to
Sixty-one Thousand Five and 70/100 Dollars ($61,005.70) to Sixty-five Thousand
Three Hundred Eight 70/100 Dollars ($65,380.70).

 

2.             Except
as specifically amended herein, all terms and conditions of the Lease shall
remain in full force and effect.

 

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Realty Income Corporation,

  A Maryland corporation,

  Doing business in Florida as

  Realty Income Properties, Inc.

  	
   

  	
  Festival Fun Parks, LLC,

  a Delaware limited

  liability company

  

 

	
  By:

  	
      /s/
  Michael R. Pfeiffer

  	
   

  	
  By:

  	
      /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Michael R. Pfeiffer

  	
   

  	
   

  
	
   

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
  General Counsel

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    12/1/99

  	
   

  	
  Date:

  	
       11/29/99

  	
   

  

 

2

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