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LEGAL APPROVAL . ":':; ... ..:." \, ... l>J .,.., GROUND LEASE THIS LEASE made this J 4 t day of December 1994, by and between Walter Dutch, as Trustee of the WALTER DUTCH TRUST ("Lessor"), having a mailing address at 240 Southland ~treet, Palm Beach, Florida 33480, and REWJB INVESTMENTS, a Florida general partnership, doing business as FARM STORES ("Lessee"), having a mailing address at 5800 N.W. 74th Avenue, Miami, Florida 33166. h'D. L- WITNESSETH: 1. PREMISES. Lessor does hereby demise and let unto Lessee, and Lessee does hereby lease and take from Lessor for the term and upon the terms and conditions set forth in this Lease I the real property which is situated in the County of Palm Beach, State of Florida, and more fully described as follows: Lot 12, plus the South 50 feet of Lot 11, Deierl Park, according to the Plat thereof on file in Clerk of the Circuit Court in and for Palm Beach County Florida, recorded in Plat Book 23, Page 236, less the right of way for State Road 804 as recorded May 25, 1994 in Official Records Book 8276, Page 1602 in the Public Records of Palm Beach County, Florida, located at the northwest corner of Boynton Beach Boulevard and N.W. 7th Court, Boynton Beach, Florida (the "Premises"), together with the non-exclusive right of ingress and egress, to the extent of Lessor's rights, over all roads, streets, alleys, sidewalks, ways, parking areas, and approaches to and from abutting highways whether public or private, bounding or serving the Premises, and the right to use all parking spaces in areas designated for public and customer parking in the areas adjacent to the Premises. 2. TERM. The term of this Lease shall begin on the da te (the '~Commencement Date") that is the earlier of (i) the date on which the last of all permits, licenses and authorizations required by any federal, state, county, or municipal agency for the installation and operation of the contemplated improvements on the Premises is issued, provided that no appeal from or objection to the issuance of any such permit, license or authorization is pending and the time for filin.g any appeal or obj ection has expired, (ii) the expiration of the Inspection Period, provided that Lessee has not timely terminated its obligations under this Lease in accordance with Section 4.3, or (iii) the date that Lessee commences the construction of any site work on the Premises for installation of the improvements to be installed by Lessee on the Premises (provided that any work done on the Premises pursuant to Section 4 of this Lease for the purposes of determining whether or not the Premises are suitable or acceptable to Lessee shall not be deemed site work for purposes of this clause (i i i) ), and shall terminate ten (10) years thereafter, unless sooner terminated or extended as provided herein. 3. RENTAL. For and in consideration of the use of the Premises, Lessee shall pay rent to Lessor for the term of this Lease, beginning on the Commencement Date, as follows: 3.1 Base Annual Rent. Annual rent (the "Base Annual Rent") in the amount of Fifteen Thousand and No/100 Dollars ($15,000.00) shall be payable in equal monthly installments of One Thousand Two Hundred Fifty and No/lOa Dollars ($1,250.00) on the first day of each calendar month following the Commencement Date and continuing until the fifth anniversary of the Commencement Date. Commencing on the fifth anniversary '.. , ". I of the Commencement Date, the Base Annual Rent shall be adjusted in accordance with the change in the Consumer Price Index (hereinafter referred to as the "CPI"). The CPI shall mean the average for "all items shown on the u.s. city average for urban wage earners and clerical workers (including single workers), all items, groups, subgroups and special groups of items" as promulgated by the Bureau of Labor Statistics of the U. S. Department of Labor (1982-84 equals 100). The Base Annual Rent shall be adjusted in accordance with the following provisions: 3.1.1 The CPI for the month which is three months prior to the Commencement Date shall be designated the Base Price Index. 3.1.2 The CPI for the month which is three months prior to the fifth anniversary of the Commencement Date shall be designateQ the Comparison Price Index. 3.1.3 The Base Annual Rent shall be adjusted to equal the result obtained by multiplying the Base Annual Rent in effect on the Commencement Date by a fraction, the numerator of which is the Comparison Price Index and the denominator of which is the Base Price Index. Written as an equation, this computation is as follows: Base Annual Rent x on the Commencement Date Comparison Price Index ~ Adiusted [lase Annual Rent Base Price Index 3.1.4 The Base Annual Rent, as adjusted In accordance wi th this Section 3.1, shall be payable in equal monthly installments on the first day of each calendar month commencing on the fifth anniversary of the Commencement Date of this Lease and continuing until the expiration of the initial term of the Lease. I; 3.1.5 No adjustment of Base Annual Rent as provided in this Section 3.1 shall reduce the Gase Annual Rent below the Base Annual Rent in effect immediately prior to such adjustment. ~.' ';; 3.1.6 In the event that the CPI hereinabove referred to ceases to incorporate a significant number of the items currently set forth therein, or if a substantial change is made in the method of establishing such CPI, then the CPI shall be adjusted to the figure that would have resulted had no change occurred in the manner of computing such CPl. In the event that such CPI (or a successor or substitute index) is not available, a reliable governmental or other nonpartisan publication evaluating the information theretofore used In determining the CPI shall be used in lieu of such CPl. 3.2 Commencement Date. If the Commencement other than the first day of a calendar month, then the portion of the calendar month commencing Commencement Date through the last day of such month pro-rated, in the manner hereinafter set forth, and paid on the Commencement Date. Da t e is rent for on the shall be shall be 3.3 Sales Tax. Lessee shall pay to Lessor, with each installment of Base Annual Rent, applicable state sales tax on such rent payments. Lessor shall be responsible to remit the sales tax to the appropriate authority. 2 . .. 3.4 Pro-rations. Base Annual Rent for any partial month, at the beginning or end of the term of the Lease or any extensions thereof, shall be pro-rated based on the actual number of days in such month. ': ~:':';' . ft': " <. 3.5 Place of Pavrnent. All rent hereunder shall be payable by Lessee at the address of Lessor specified in Paragraph 32, below, or at such other place as Lessor shall direct by proper notice hereunder. 4. RIGHT OF INSPECTION. 4.1 Lessee, its agents, consultants, employees and representatives, shall have full access to the Premises at all reasonable times prior and subsequent to the Commencement Date with full right to inspect the Premises and the state of Lessor's title thereto to the fullest extent desired by Lessee in connection with its having entered into this Lease and to make its own independent investigations and inquiries concerning all applicable building, zoning, environmental and other codes, ordinances, statutes, rules, regulations and requirements affecting the Premises and Lessee's intended use thereof; and Lessee shall have the right to conduct all such investigations, inquiries, tests, studies, surveys and borings on the Premises as Lessee, its engineers, surveyors and consul tants shall deem necessary or des irable, including, without limitation, to make soil borings and tests. Any entry on or to the Premises by Lessee or its authorized representatives pursuant to the provisions hereof shall be at the risk of Lessee. Lessee shall be responsible to restore the Premises to a reasonable condition at the conclusion of all such tests in the event this Lease is terminated In accordance with Section 4.3. Such rights of inspection and to make tests, or the exercise or non-exercise of the same, shall not constitute a waiver by Lessee of the breach of any representations or warranties of Lessor which were or which ~ight have been disclosed by such inspections or tests. 4.2 Within five (5) days after the date of this Ground Lease, Lessor shall deliver to Lessee copies of all existing surveys, title insurance policies and commitments, plans and specifications, soil tests, engineering reports, licenses, permits and approvals, notices received by Lessor and such other documents relating to the Premises which may be reasonably requested by Lessee and are in the possession or control of Lessor. " ;' 4.3 I f any inspection or inqui ry re 1 a t ing to the Premises reveals any matter that is for any reason unsatisfactory or unacceptable to Lessee (in Lessee's sole and absolute discretion), then Lessee shall have the right, exercisable at any time on or before one hundred twenty (120) days after the date of this Lease such 120 day period (is referred to herein as the "Inspection period") to terminate all of its obligations under this Lease by furnishing written notice of termination to Lessor, and thereafter all rights, obligations and liabilities of the parties under this Lease shall terminate. Without limiting the foregoing right, Lessee may also elect to notify Lessor of the matters affecting the Premises that are not acceptable to Lessee (a "Notice") and request Lessor to remedy the same at Lessor's sole expense. Lessor agrees to use its best efforts to remedy such matters within thirty (30) days of Lessee's Notice as aforesaid, and agrees that Lessee's right to terminate this Lease shall be extended beyond the Inspection Period until the earlier of (a) ~L:.., . ij~li . ~} 3 :~,".! . ~:f";j ~ " i"': I ,~(' I .U sixty (60) days after the date of Lessee 1 s Notice, or (b) thirty (30) days after Lessor notifies Lessee that all matters identified in the Notice have been remedied. If, prior to the expiration of the Inspection Period, Lessee commences the construction of any site work on the Premises for installation of the improvements to be installed by Lessee on the Premises, Lessee shall be deemed to have waived its right to terminate this Lease pursuant to this paragraph 4.3; provided that any work done on the Premises for the purposes of determining whether or not the Premises are sui table or acceptable to Lessee shall not be deemed a waiver of Lessee f s right to terminate this Lease. I;;. 5. USE OF PREMISES. The Premises shall be used for the purpose of constructing the Improvements (as hereinafter defined) thereon and using the Premises and the Improvements for the operation of a drive-through convenience food and dairy product store, including the sale of beer and wine for off-premises consumption, the sale of cigarettes, tobacco products, and the sale of state authorized lottery game tickets, or for any other lawful purpose. 6. CONSTRUCTION OF IMPROVEMENTS. " 6.1 Lessor acknowledges that Lessee intends to construct a pre-fabricated, relocatable, modular double drive-thru convenience store and related faci 1 i ties on the Premi ses, including, without limitation, driveways and roadways, parking areas, signage, loading, service and storage facilities, trash facilities and enclosures, exterior lighting facilities, gradings, fences and landscaping (collectively, the "Improvements") and to use the Premises and the Improvements for the operation of a convenience store for the sale of food and dairy products, beer and wine, cigarettes and tobacco products, and lottery tickets. Lessor hereby grants Lessee permission, to construct, at Lessee's expense, the Improvements on the Premises, and to install therein, thereon and thereunder fixtures, equipment and apparatus to be used in connection with the operation and maintenance thereof. All Improvements shall be constructed in accordance wi th all applicable permits and authorizations and building and zoning laws and with all other applicable laws, ordinances, orders, rules, regulations, and requirements of all federal, state, and local governments, departments and commissions. The cost of the Improvements shall be paid for by Lessee so that the Premises and the Improvements shall be free of liens for labor and materials supplied to the Premises and the Improvements. .t ~.. r{1 / ' l' ' ~I, ',' [A. ~f' ,":. " , 1,;-' ,','. k: ~~;~~ ' ~, 6.2 All Improvements, other improvements, fixtures, machinery and equipment constructed or installed on or under the Premises by Lessee shall be and remain the property of Lessee during the term of the Lease and thereafter. Within thirty (30) days after expiration or sooner termination of the Lease in accordance herewith, Lessee shall remove its modular convenience store (including the slab on which it is located), and all fixtures, machinery and equipment therein, and all signage, storage and trash facilities, and exterior lighting constructed or installed on the Premises by Lessee. Lessee, at Lessee's expense, may install lighting poles on the Premises, which poles shall be and remain the property of Lessee during the term of the Lease and thereafter, and, within thirty (30) days after expiration or sooner termination of the Lease in accordance herewith, Lessee shall remove such poles. 4 6.3 Notwithstanding anything to the contrary herein, in the event that Lessee has not obtained all permits and authorizations of all federal, state, county and municipal agencies and authorities having jurisdiction to enable Lessee to commence and complete construction of the Improvements by the expiration of the Inspection Period, Lessee shall have the option to terminate this Lease by giving to Lessor written notice of such termination within tcn (10) days aftcr the expiration of the Inspection Period, In which event all rights, obligations and liabilities of the parties under this Lease shall terminate. 7. LESSEE'S COVENANTS. Lessee covenants and agrees: 7.1 To use all reasonable care to prevent waste, damage, or injury to the Premises; 7.2 To comply, at Lessee's expense, with all valid ordinances, rules, regulations, requirements, laws and orders of any municipal or other governmental authority applicable to the operation of Lessee's business at the Premises (provided, however, that Lessee shall have the right to contest, by appropriate proceedings diligently conducted in good faith, in the name of Lessee or Lessor (if legally required), the validity or application of any such law, ordinance, order, rule, regulation or requirement, and, if by the terms of such law, ordinance order, rule, regulation or requirement, compliance therewi th may legally be delayed pending the prosecution of any such proceeding, Lessee may d~lay compliance therewith until the final determination of such proceeding; and provided further that Lessor shall execute and deliver any appropriate documents or instrument which may be necessary or proper to permit Lessee to contest the validity or application of such law, ordinance, order, rule, regulation or requirement and shall cooperate with Lessee in such contest); 7.3 To comply with all requirements of the insurance underwriting board or insurance inspection bureau having jurisdiction, and the requirements of all policies of hazard insurance maintained by Lessee, with respect to the Premises; 7.4 To pay for all water, gas, heat, air conditioning, light, power, sewer, telephone and all other utilities and services used by Lessee at the Premises. 8. LESSOR'S WARRANTIES AND COVENANTS. covenants and agrees to and with Lessee that: Lessor warrants, 8.1 Lessor has good and marketable fee simple title to the Premises, free and clear of all leases, tenancies, liens, and encumbrances that may affect the rights granted Lessee under this Lease; j. - 8.2 No part of the Premises has been dedicated and Lessor has not agreed to dedicate any part of the Premises for any public or private use; ;.:. 8.3 Lessor will join in and/or grant to utility companies easements over, under and upon the Premises for the installation and furnishing of utility services to the Premises, provided that the location of such easements will not interfere with the proposed site of the Improvements to be located on the Premises; 5 , j I j~ r r \ \ 8.4 Lessor will make or join in any applications for permits or authorizations relating to the construction of the Improvements and/or required for the operation of Lessee's business on the Premises, provided that Lessee shall bear the cost and expense therefor. 9. OUIET ENJOYMENT. Upon payment by Lesse8 of the rent provided herein, and upon the observance and performance of all terms, provisions, covenants and conditions on Lessee's part to be observed and performed hereunder, Lessor covenants and agrees that Lessee shall peaceably and quietly have, hold and enjoy the Premises for the term of the Lease, without hindrance or interruption from Lessor or any person or enti ty claiming by, through or under Lessor. i I I I, 10. MAINTENANCE AND REPAIRS. Throughout the term of the Lease, Lessee shall, subject to reasonable wear and tear keep and maintain the Premises and the, improvements thereon in a good state of repair and in a clean and'sanitary condition. " ;J 11. TAXES AND INSURANCE. ~1'. ~;I ,~t\,';';, .;1) .'. h';' v,,: f.1" ~.., \, " 11.1 Taxes. j'i l:' : ~ 1 ;', 11.1.1. Lessee shall pay all real and personal property taxes, general and special assessments, use or sales taxes, and other charges levied on or assessed against the Premises, the improvements located on the Premises, and personal property located on or in the Premises or the improvements thereon, which are payable with respect to the period commencing on the Rent Commencement Date and ending on the expiration or sooner termination of the term of this Lease. Lessee shall make all such payments directly to the charging authority before delinquency; provided, however, that Lessee may contest the validity or amount of any taxes, assessments or charges for which Lessee is responsible under this Lease and may insti tute such proceedings (in Lessor's name if required, in which case Lessor shall execute and deliver all such documents and instruments and shall take any and all such other action as shall be necessary or proper to permi t Lessee to br ing such proceedings), including certiorari proceedings and appeals from orders, judgments and decrees, as Lessee shall deem necessary or desirable. If Lessee contests any such tax, assessment, or charge, Lessee may withhold or defer payment or pay under protest any such tax, assessment or charge, provided that such contest does not result in the sale of tax certificates for the Premises or forfeiture or loss of the Premises. In the event of any refunds or rebates on account of taxes paid by Lessee hereunder, such refund or rebate shall belong to Lessee, and, if received by Lessor, Lessor shall receive the same in trus t and promptly pay such amounts to Lessee. If payment of any tax, assessment or charge is permi t ted to be made in installments, Lessee may, at its option, pay such tax, assessment or charge in installments before delinquency. All payments of taxes and assessments shall be prorated for the term of the Lease. ':f~ r l:r.l 11.1.2 Upon request of Lessor, Lessee shall furnish to Lessor proof of payment of the taxes for which it is responsible hereunder. Lessor shall furnish to Lessee, promptly upon its receipt thereof, a copy of all tax bills, notices of assessments, notices of increase, or ;f} 6 other similar correspondence or bills relating to the Premises. Lessee may make suitable arrangements with the taxing authorities for the mailing or sending of bills and notices directly to Lessee. 11.1.3 In the event that during the term of this Lease the Premises are not separately assessed but are assessed as part of a larger tract of land, then Lessor and Lessee shall apportion any and all taxes, assessments and charges. Lessee's proportionate share of any such taxes, assessments and charges shall be determined by mul tiplying the amount of such taxes, assessments and charges by the fraction, the numerator of which shall be the acreage content of the Premises, and the denominator of which shall be the acreage cOlllent 01 all the property covered by the tax, assessment or charge. Prior to the calculation of Lessee's proportionate share, the amount of such tax, assessment or charge shall be reduced by (i) the portion thereof' which is attributable to any building or improvement erected on such larger tract (except the Premises), for which portions Lessor shall be solely responsible, and (ii) the portion of the tax, assessment or charge which is attributable to the Improvements, for which portion Lessee shall be solely responsible. 11.1.4 Nothing herein shall be construed to require Lessee to pay (i) any income, gross receipts or similar tax assessed on or in respect of income of Lessor or chargeable to or payable by Lessor, (i i) any capi tal levy, estate, succession, inheritance, transfer or similar tax assessed or payable by reason of any inheritance, devise, or transfer of any estate or property of Lessor, including but not 1 imi ted to any interest in the Premises or the rent payable hereunder, or {iii} any corporation or other franchise, license, mercantile or similar tax assessed against or payable by Lessor other than with respect to the use or occupancy of the Premises by Lessee or any sublessee. Of, 11.2 Insurance. Throughout the term of this Lease, and any extension or renewal hereof, Lessee shall, at Lessee's cost and expense, maintain the following insurance: 11.2.1 Improvements value; Fire and extended coverage insurance on the in the amount of their full replacement 11.2.2 Public liability insurance against any claims for bodily injury, death or property damage occurring on, in or about the Premises or the Improvements, with combined single limits of not less than $1,000,000.00 in respect of injuries to or death of one or more persons and damage to property In anyone occurrence, including product liability; 11.2.3 Any other insurance coverage required by law to be maintained in connection with the Premises, Lessee's business or Lessee's use of the Premises. The insurance policies described in this paragraph shall be writLen by reputable insurance companies authorized to do business in the state of Florida. All policies of insurance described in Section 11.2.1 shall name Lessee as the insured. All policies of insurance described in Section 11.2.2 shall name Lessee and Lessor as the insureds, as their respective interests may appear. Lessee shall 7 furnish to Lessor appropriate certificates from the insurer (s) showing that the insurance coverage referred to above are in force, and evidence that the premiums have been paid by Lessee. Nothing herein shall preclude Lessee from taking out insurance of the kinds required by this Section 11.2 under a blanket insurance policy or policies maintained by Lessee with respect to other property owned or leased by Lessee, as well as the Premises and the Improvements. Lessee shall, to the extent permitted by law, have the right to self insure with respect to all workers' compensation liabilities. i I i I I I l 12. CASUALTY DAMAGE. Lessor agrees and consents that (i) all losses under insurance policies provided for in Section 11.2.1 shall be adjusted with the insurance company by Lessee and (ii) all insurance proceeds with respect to casualty damage to the improvements on the Premises, for damage or destruction to the contents of any improvements located on the Premises, and for interruption of Lessee's business operations on the Premises shall be payable and paid by the inpurance company directly and solely to Lessee and not solely or jointly to Lessor, and Lessor hereby directs the insurance company insuring Lessee with respect to such casualty damage to pay the proceeds with respect thereto directly and solely to Lessee, and no further authorization of Lessor shall be required by the insurance company to do so. If Lessor receives any proceeds of insurance relating to casual ty damage to the improvements on the Premises, or the contents thereof, or for interruption of Lessee's business operations on the Premises, Lessor shall receive the same in trust for Lessee and shall forthwith turn over to Lessee all such proceeds of insurance. Rent hereunder shall not abate during the period in which the improvements on the Premises are untenantable. 13. EMINENT DOMAIN. If (i) all of the Premises shall be taken by any governmental body under the exercise of eminent domain or by agreement with such governmental body in lieu of a taking, or (ii) a portion of the land comprising the Premises and/or the improvements located thereon (including, without limitation, the area used for access or parking) shall be so taken such that the remainder would, in Lessee's judgment, be inadequate or unsuitable for the continued use of the Premises for the purpose then used, then the term of this Lease shall termina te as 0 f the da te possession of the Premises or portion thereof shall be taken, and the rent shall be adjusted as of the time of such termination and any rent paid for a period thereafter shall be returned to Lessee. If only a part of the Premises shall be taken, and, in Lessee's judgment, the remainder of the Premises are adequate and suitable for the continued use of the Premises for the purpose then used (including for access and parking), this Lease shall terminate as to the portion of the Premises taken, and, unless the Lease shall be terminated as hereinafter provided, it shall continue in full force and effect as to the remainder of the Premises and the Base Annual Rent shall be reduced in proportion to the amount of the Premises taken. If the remainder of the Premises cannot be or is not made tenantable for the purposes for which Lessee has been using the Premises within thirty (30) days after a partial taking, Lessee may terminate the term of this Lease effective as of the date possession is taken. If, in the event of a partial taking, the term of this Lease is not terminated as to the remainder of the Premises, Lessee shall promptly cause all repairs and alterations to the improvements on the Premises necessary to make the improvements tenantable to be made. Both Lessor and Lessee shall have the right to claim against and recover from the taking authority the value of their respective interests taken; provided that Lessor shall be entitled to the value of the lands taken and severance damages. Lessee shall be entitled to claim for business damages, if any, and for any improvements taken, including for 8 repair, restoration, or replacement of the improvements. Lessee shall have no right to apportionment of Lessor's recovery for the value of the lands taken or severance damages. 14. ZONING; OPERATION OF LESSEE'S BUSINESS. Lessor agrees that it will not apply for or consent to any modification of the current zoning classification applicable to the Prem~ses which would prevent or interfere with Lessee's use of the Premises for operation of a convenience food store, including the sale of beer and wine for off-premises consumption, the sale of lottery tickets and the sale of food products, and tobacco products. Les~ec shall have the right (but not the obligation) to contest any change in zoning of the Premises which would impair Lessee's use of the Premises for the aforestated purposes. If the zoning of the Premises is changed, or any law, regulation, rule, or ordinance is enacted, or any other condition or state of facts shall occur, and the effect of the foregoing is to preclude Lessee from using the Premises for any of the aforestated purposes seven (7) days a week, the rent hereunder shall abate as of the date such prohibition becomes effective and Lessee shall have the right to terminate this Lease. l'\ I ~.~ ~<;.~ ( \ 15. NON-COMPETE. During the term of this Lease, and any extensions or renewals thereof, and so long as Lessee is conducting the business of a convenience food store on the Premises, neither Lessor nor any of its affiliates shall (i) engage in any activity directly or indirectly competi ti ve wi th the convenience store business of Lessee, or (ii) lease any other space to any tenant or tenants engaging in the convenience store or the grocery store business ( collectively, the "Restricted E:n l:crpr isc~i" ), ill cacll ca ~:3C ;.at a location within two (2) miles (in any direction) from the Premises, and with respect to the grocery store business, operating in premises of less than 10,000 square feet of usable space. Lessor agrees that any violation of the provisions of this paragraph would cause irreparable harm to Lessee and that such harm cannot be adequately compensated in money damages. I f Lessor breac~es its agreements set forth in the paragraph, in addition to any other rights and remedies Lessee may have at law or in equity, Lessee, at its option, and without waiving its right to pursue any or all of the following or any other remedies simultaneously or in any order it elects, (a) shall be entitled to injunctive relief against ~essor, and (b) may terminate this Lease if Lessor fails to cure such breach within thirty (30) days after Lessee gives Lessor written notice thereof. Lessee shall not be liable for payment of any rental under this Lease during the continuance of Lessor I s breach hereunder, and all rental hereunder shall abate during such period. Lessor shall be liable to Lessee for all losses, damages, costs and expenses, including reasonable attorneys' fees, incurred by Lessee in connection with Lessor's breach of its agreement set forth in this paragraph, including, without limitation, the cost of enforcement thereof and loss of goodwill, loss of profits and loss of customers. The invalidity of anyone or more of the words, phrases, sentences or clauses contained in this paragraph shall not affect the enforceability of the remaining portions of this paragraph. If one or more of the words, phrases, sentences or clauses contained in this paragraph shall be invalid, this paragraph shall be construed as if such invalid word, phrase, sentence or clause had not been inserted, and if such invalidity shall be caused by the length of any period of time, the size of any area, or the service or product limitations set forth in this paragraph, such period of time, or size of area, or such product or service limitations shall, without need of further action by any party hereto, be deemed to be reduced to a period, area, serv:ce or product which will cure such invalidity, and shall thereafter be enforceable to the fullest extent permitted by law. I': I: ,~. ! ,~ I 9 16. TRADEMARKS OF LESSEE. Lessor acknowledges that Lessee uses certain trade names, trademarks, service marks, and logos, including the name "Farm Stores," and that Lessor has no right, title or interest therein. Lessor agrees that Lessor (i) shall not contest, directly or indirectly, Lessee's exclusive right to use such trade names, trademarks, service marks and logos a t the Premises, (ii) shall permit Lessee to remove from the Premises at any time any signage or other property on which any such trade names, trademarks, service marks or logos appear, and (iii) shall expressly prohibit, in any subsequent lease of the Premises to any tenant other than Lessee or an affiliate of Lessee, the use of any of Lessee's trade names, trademarks, service marks or logos. The provisions of this paragraph shall survive the termination of this Lease. " :1, 'he: t /:. !~: -F I i:' f, I' 17. ALTERATIONS: TRADE FIXTURES; SIGNS. Lessee may, at its own expense, make such alterations, additional changes and improvements to the Premises or the improvements thereon, including removal and replacement of improvements, as it deems necessary or desirable. All trade fixtures, inventory and equipment, including, but not limited to, shelving, ice cream and meat cabinets, cases, refrigeration equipment, walk-in coolers, signs, panels and decorative materials, and specially designed equipment shall remain the property of Lessee (notwi thstanding tha t anyone of the foregoing may be affixed to the real property or the improvements thereon) and Lessee shall have the right to remove the same upon termination of this Lease. Lessee shall have the right to install, at Lessee's expense, exterior signs, including facia signs on the improvements and pylon signs at any location on the Premises, in accordance with applicable law. Lessee shall, at Lessee's expense, remove all of its signs upon expiration of this Lease and repair any damage resulting therefrom. If Lessee does not install pylon signs at the Premises, Lessor shall include Lessee's name (in the type and design designated by Lessee) on the community signs for businesses located adjacent to the Premises. Lessor hereby walves any lien, statutory, contractual, or otherwise, for rent. 18. ENTRY. Lessor, or its authorized agents, may enter the Premises during daytime business hours for the purpose of exhibiting them to prospective tenants within sixty (60) days prior to the expiration of the term of the Lease. 19. ASSIGNMENT OR SUBLETTING. Lessee may assign this Lease or sublet all or part of the Premises or mortgage or encumber its leasehold interest in the Premises with the prior written consent of Lessor, which consent will not be unreasonably wi thheld or delayed. The merger or consolidation of Lessee with another entity or the sale of substantially all of the assets of Lessee shall not constitute an assignment or subletting within the meaning of this paragraph, and shall be permitted without prior notice to or consent of Lessor. 20. LESSEE'S DEFAULT. 20.1 If Lessee shall materially breach any of the terms or provisions of this Lease, other than the requirement to pay rent, Lessor shall promptly so notify Lessee in writing specifying the breach. If Lessee shall fail to cure such breach within thirty (30) days after receipt of such notice, or if the breach is of such a character as to require more than thirty (30) days to cure and Lessee shall fail to commence to do so within thirty (30) days after receipt of such notice and thereafter diligently proceed to cure such breach, then, in either such event, Lessor may cure such breach. In the event Lessor incurs any expense in curing 10 .' . Lessee's breach hereunder, the reasonable expense of curing same shall be considered additional rent and Lessee shall reimburse Lessor therefor within twenty (20) days of Lessee's receipt of an invoice for such expense. If Lessee fails to reimburse Lessor in full within twenty (20) days after Lessor's demand therefor, the amount due to Lessor under such invoice shall bear interest at the maximum rate permitted by law until repaid in full. 20.2 If Lessee shall default in the payment of any rent due hereunder, Lessor shall give written notice to Lessee of its default, and if Lessee has not cured the default within ten (10) days of Lessee's receipt of the notice, Lessor, ln addition to all other rights and remedies available to Lessor under the laws of Florida, may exercise anyone or more of the following options: 20.2.1 Terminate the term of this Lease upon thirty (30) days' written notice to Lessee, in which event Lessee shall quit and surrender the Premises to Lessor. If the term of the Lease shall be so terminated, Lessor may, at the expiration of such thirty day period, or any time thereafter, enter upon and possess the Premises and remove all persons and property therefrom. Termination under this paragraph shall not relieve Lessee from the payment of any previously accrued sums due to Lessor; or ; t. ~: l" l{: ~.; . ~:" I~ .1:' . 20.2.2 Enter upon the Premises, without terminating the Lease, and re-Iet the Premises for the account of Lessee, and apply the rental received by Lessor in re- letting the Premises to the payment of rent due hereunder; provided that Lessee shall have the right to remove all of its property, including the Improvements, as set forth in Section 6. I f the amount of ren t received by Lessor is more than the amount payable by Lessee hereunder, Lessor shall pay the difference to Lessee, and if the amount of rent received by Lessor is less than the amount payable by Lessee hereunder, Lessee shall pay the deficiency to Lessor. All rights and remedies granted Lessor by this Lease are cumulative to each. other, and Lessor's pursuit of any particular right or remedy, or any combination, shall not constitute an election of remedies, or a waiver of any right or remedy otherwise available, unless such election or waiver is expressly stated by Lessor in writing. Any consent or waiver of an event of default by Lessor shall not constitute consent to, or waiver of, any right, remedy or power of Lessor upon the same or a subsequent event of default. 21. LESSOR'S DEFAULT. In the event that Lessor shall be in default under any of its obligations or agreements set forth in this Lease, and Lessor shall fail to cure such default within thirty (30) days after notice thereof is given by 1.essee: l.o Les so L, or if the breach is of such a character as to require more than thirty (30) days to cure and Lessor shall fail to commence to do so within thirty (30) days after receipt of such notice and thereafter diligently proceed to cure such breach, then, in either such event, in addition to any other remedies available to Lessee at law or in equity, Lessee may (but shall not be obligated to) cure such default and Lessor shall, within twenty days after Lessee furnishes Lessor with an invoice therefor, reimburse Lessee for all reasonable expenses incurred by Lessee in curing such default, or, at Lessee's option, Lessee may offset any rent coming due under the Lease until Lessee is reimbursed in full. Without limiting the generality of the foregoing, this provision shall apply to any 11 breach of Lessor's covenant of quiet enjoyment hereunder. If Lessor fails to reimburse Lessee in full within twenty days after Lessee's demand therefor, the amount due to Lessee shall bear interest at the maximum rate permitted by law until repaid in full. :i ,I l ;. 22. INDEMNIFICATION. Lessee agrees to defend, indemnify, and hold Lessor harmless from and against all liabilities, losses, claims, demands, costs, expenses, including reasonable attorneys' fees, arising out of (i) any injury to any person or persons, or any loss or damage to property of any person (including any loss or damage to the Premises) occurring on the Premises and arising or resulting from Lessee's use or operation of the Premises during the term of this Lease, unless caused by the willful act or negligence of Lessor, its employees or agents, and (ii) liens against Lessor's interest in the Premises arising as a result of the performance of any labor or services, or the furnishing of any materials or other property at or to the Premises furnished at the request or instruction of Lessee. ) 'I l " :1', :l ,I :! ,I " " :.'1\,; , :( ~ l i , I I 23. MECHANICS' LIENS. Lessee agrees that Lessee will pay all liens of contractors, subcontractors, mechanics, laborers, materialmen, and other i terns of like character for services or materials furnished to the Premises at the request or instruction of Lessee. If any lien or claim is made or filed against the Premises as a result of services performed at or materials provided to the Premises at the request or instruction of Lessee, Lessee shall, within thirty (30) days after notice of such lien or claim is served upon Lessee, or, if notice of lien is not served upon Lessee, within thirty (30) days after Lessee learns of such claim or lien having been filed among the public records of the county in . which the Premises are located, cause such lien to be discharged of record by payment, deposit, bond, order of court, or otherwise. I 1 I' , I, f ' " 1"1, ) I, i [ Lessee shall not have any authority to create any liens for labor or materials on Lessor's interest in the Premises and all persons contracting with Lessee for the construction, installation, alteration or repair of any improvements on the Premises, and all materialmen, contractors, mechanics, and laborers are hereby charged with notice that they must look only to Lessee and to Lessee's interest in the Premises to secure the payment of work done or materials furnished at the request or instruction of Lessee, .and Lessor's interest in the Premises shall not be subj ect to liens for repairs, maintenance or improvements made by Lessee at the Premises. In accordance with Fla. stat. Section 713.10, Lessee shall notify all of its contractors making improvements to the Premises of this provision. 24. SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE. This Lease shall be subordinate to any ground lease or mortgage now or hereafter placed on the Premises, provided that the grolJnd lessor or mortgagee, as the case may be, shall agree, in a non-disturbance agreement reasonably acceptable to Lessee, that so long as Lessee is not in default under this Lease, the mortgagee or ground lessor shall not join Lessee in any foreclosure proceeding or seek to disturb or disturb Lessee's continued possession of the Premises pursuant to this Lease or foreclose or attempt to foreclose Lessee's interest in the Premises. Lessee agrees to attorn to any of Lessor's successors under all of the terms, condi tions and covenants of this Lease for the balance of the remaining term. The aforesaid provisions shall be self-operative and no further instrument of subordination or attornment shall be required to evidence such attornment or subordination (subj ect to Lessee's receipt of a non-disturbance agreement as set forth above). Notwithstanding the foregoing to the contrary, Lessee covenants to execute any further instrument reasonably requested by Lessor's 12 . , mortgagee or ground lessor to evidence such attornment or subordination, subject to Lessee's receipt of the non-disturbance agreement described above. i I 'I :1 :) :1 25. ESTOPPEL CERTIFICATE. Lessee agrees that from time to time, upon not less than twenty (20) days' prior written request by Lessor, Lessee will deliver to Lessor a written statement certifying (i) that this Lease is unmodified and in full force and effect (or, if there have been modifications, that the Lease as modified is in full force and effect and stating the modifications), (ii) the dates to which the rent and other charges have been paid, (iii) that, to Lessee's knowledge, Lessor is not in default under any provisions of the Lease, or, if in default, stating the nature thereof, and (iv) whether or not Lessee is in occupancy of the Premises. Lessor agrees to furnish to Lessee from time to time, upon not less than twenty (20) days' prior written request by Lessee, a written statement with similar provisions as set forth in the preceding sentence (except stating that, to Lessor's knowledge, Lessee i's not in default under provisions of the Lease, or if in default, stating the nature thereof). 26. RIGHT OF FIRST REFUSAL TO PURCHASE. If, during the term of this Lease or any renewal or extension hereof, Lessor desires or intends to sell the Premises, then, prior to listing the Premises for sale (or if the Premises are not listed, then prior to advertising or accepting any offer to purchase the Premises), Lessor shall give Lessee a written notice (a "Sale Notice") stating its intention to sell the Premises and setting forth the price and other terms on which Lessor is willing to sell the Premises. Lessee shall have ten (10) business days from the date it receives 'a Sale Notice to give Lessor wr it ten no t ice ((J "I\cpl y No t i cc") stating whether Lessee desires to purchase the Premises on the terms set forth in the Sale Notice. If Lessee timely gives Lessor a Reply Notice stating that Lessee desires to purchase the Premises on the terms set forth in the Sale Notice, Lessor and Lessee shall negotiate in good faith to document the transaction within fifteen (15) ,days thereafter and consummate the transaction in a manner acceptable to both parties. If, notwithstanding Lessee's failure to timely give a Reply Notice or Lessee's refusal to purchase the Premises on the terms set forth in the Sale Notice, Lessor desires to sell the Premises to a third party for a purchase price less than that set forth in the Sale Notice or on other terms more favorable to the purchaser than those included in the Sale Notice, then Lessee's right of first opportuni ty and refusal shall be reinstated on the same terms as first provided herein, Lessor shall again be required to give Lessee a Sale Notice, and Lessee shall again have a right of first opportunity and refusal with respect to the Premises on the same terms and conditions set forth in this paragraph. 27. OPTIONS TO EXTEND TERM. Lessee shall have and is hereby granted options to extend the term of this Lease for two (2) additional periods of five (5) years each (each such five year period is referred to as a "Renewal Term"). Each option shall be exercisable by Lessee giving wri tten notice to Lessor 0 fits election to exercise an option at least thirty (30) days prior to the expiration of the initial term of this Lease (with respect to the first Renewal Term) or the expiration of the first Renewal Term (with respect to the second Renewal Term). The Base Annual Rent during each Renewal Term shall be adjusted on the first month of each five (5) year Renewal Term, if applicable, in accordance with the changes in the CPl. The Base Annual Rent applicable to each Renewal Term shall be adjusted in accordance with the following provisions: 13 .. ." 27.1 The CPI for the month which is three months prior to the Commencement Date shall be designated the Base Price Index. 27.2 The CPI for the month which to the first month of the Renewal Term adjusted Base Annual Rent is being designated the Comparison Price Index. is three months prior with respect to which calculated shall be 27.3 Promptly after the end of the initial term and at the commencement of each Renewal Term thereafter (provided that the Lessee exercises its option to extend the term of the Lease for such Renewal Term), the Base Annual Rent shall be adjusted to equal the result obtained by multiplying the Base Annual Rent in effect on the Commencement Date (the "Old BAR") by a fraction, the numerator of which is the Comparison Price Index and the denominator of which is the Base Price Index. Written as an equation, this computation is as follows: Old BAR x Comparison Price Index ~ New Base Annual Rent Base Price Index 27.4 No adjustment of Base Annual Rent for a Renewal Term shall reduce the Base Annual Rent below the Base Annual Rent in effect immediately prior to such Renewal Term. 28. SURRENDER OF PREMISES. Lessee shall, upon expiration of the term of the Lease, or earlier termination of the Lease, and subject to Section 6 of this Lease, surrender and deliver the Premises to Lessor in the condi tion which Lessee has agreed to :maintain the Premises pursuant to the provisions of this Lease, reasonable wear and tear and damage by fire or the elements or other causes beyond Lessee's control excepted. :}~..' 29. SHORT FORM LEASE. This Lease shall not be recorded, but, if requested by either party hereto, Lessor and Lessee agree to execute a short form of lease which Lessor and Lessee agree shall be in a form and executed in a manner sufficient to enable it to be recorded in the public records of the county where the Premises are located, and either party may so record it. 30~ RIGHT TO CANCEL. Provided that Lessee is not then ln default under this Lease, Lessee shall have the option to cancel this Lease at any time after the Commencement Date. Lessee 1 s option to cancel shall be exercised only by giving Lessor written notice thereof at least thirty (30) days prior to the effective date of cancellation set forth in Les see's not ice (the "Cancellation Date"). If Lessee exercises its option to cancel this Lease, Lessee shall pay to Landlord, simultaneously with the gi ving of Lessee's notice exercising its option to cancel, a cancellation fee in the amount of $15,000.00 (the "Cancellation Fee"), and all of Lessee's obligations under this lease shall terminate as of the Cancellation Date, provided that Lessee shall remove all of its improvements in accordance with Sectlon 6.2 of this Lease. Lessee's right to cancel in accordance wi th the provisions of this paragraph shall be in addition to Lessee's other rights of termination as set forth in this Lease, with respect to which no Cancellation Fee shall be payable. 31. REAL ESTATE COMMISSIONS. Lessor and Lessee represent and warrant to each other that, except for Merin-Hunter-Codman, which has been engaged by Lessor and whose commission Lessor is responsible to pay, they have not engaged any broker or finder in connection with this Lease, and each agrees to indemnify and hold 14 the other harmless from and against any and all claims for brokerage commissions by any broker or finder claiming by, through or under it. 32. NOTICES. All notices required or permitted by this Lease shall be in writing and shall be deemed given (i) upon hand delivery, or (ii) three days after deposited in the United States certified mail, return receipt requested, in each case properly addressed to the party for whom intended at the address set forth below, or such other address as is most recently noticed in the aforesaid manner: If to Lessee: REWJB Investments 5800 N.W. 74th Avenue Miami, Florida 33166 Attn: Marc S. Feller If to Lessor: Walter Dutch, as Trustee of the Walter Dutch Trust 240 Southland ~e-e-t- \~ (-:> Palm Beach, Florida 33480 L.U~ . i. .- 33. RADON GAS. Pursuant to Florida Statutes, Lessor hereby notifies Lessee as follows: "Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit." 34. ENTIRE AGREEMENT; AMENDMENTS. This Lease contains the entire agreement between the parties hereto and supersedes all previous negotiations, agreements and understandings with respect thereto. This Lease may be modified only by an agreement signed by the party against whom enforcement is sought. 35: SUCCESSORS AND ASSIGNS. The terms, covenants, conditions and agreements herein contained and as the same may from time to time hereafter be supplemented, modified or amended, shall be binding upon and inure to the benefit of the parties hereto and their respective successors, legal and personal representatives and assigns. 36. APPLICABLE LAW; VENUE. This Lease shall be governed by and construed in accordance with the laws of the State of Florida exclusive of its conflict-of-laws principles. The parties agree that Palm Beach County, Florida shall be the proper venue for any suit arising out of this Lease. 37. HEADINGS. The headings in this Lease are for convenience of reference only and shall not be considered in construing the provisions of this Lease. 38. SEVERABILITY. If any term, provision, covenant or condition of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, such provisions or portions thereof shall be deemed stricken and severed from this Lease, and the remaining provisions and portions hereof shall continue in full force and effect and shall not be affected thereby, and each term, provision, covenant and condition 15 of this Lease shall be valid and enforceable to the fullest extent permitted by law. 39. COUNTERPARTS. This Lease may be executed In counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 40. WAIVER. The failure of Lessor or Lessee to insist in any one or more instances upon the strict performance of anyone or more of the covenants, terms and agreements of this Lease, shall not be construed as a waiver of such covenants, terms or agreements, but the same shall continue in full force and effect, and no waiver by the Lessor or Lessee of any of the provisions hereof shall in any event be deemed to have been made (by acceptance of rent or otherwise) unless the same be expressed in writing, signed by the party against whom enforcement lS sought. 41. ATTORNEYS' FEES. The prevailing party shall be entitled to recover its reasonable attorneys' fees and costs in any action brought to enforce any rights or remedies under this Lease. The term attorneys' fees shall include attorneys' fees and paralegals' fees and disbursements incurred at trial, pre-trial and post-trial, on appeal, and in any investigative, administrative, insolvency, and bankruptcy proceedings. 42. FORCE MAJEURE. Neither Lessee nor Lessor shall not be in default under this Lease if its performance is delayed or prevented by or due to strikes, lockouts, inabili ty to obtain labor and materials on the open market, war, riots, unusual weather conditions, acts of God and other similar causes beyond its reasonable control, and the time within which Lessee or Lessor must comply with any of the terms I covenants and condi t ions 0 f thi s Lease shall be extended by a period of time equal to the period of time that performance by Lessee or Lessor, as the case may be, is delayed or prevented by a cause specified above. 43. NO DELAY OR WITHHOLDING. No approval or consent of Lessor which is required by any provision of this Lease shall be unreasonably delayed or withheld, unless expressly stated to the contrary herein. 44.- CAPACITY. Lessor represents and warrants that (i) Lessor has full legal capacity to enter into and perform this Agreement, (ii) Lessor has been duly advised by counsel of Lessor's choice in the negotiation of this Lease, and (iii) Lessor has had this Lease fully explained and understands the risks and bene fits hereof. This Lease has been prepared and negotiated by both parties hereto and their respective counsel, and shall not be construed more strictly against one party on the basis of a claim that such party drafted this Lease or otherwise. 45. HAZARDOUS MATERIALS. Lessee agrees that (i) it will keep or cause the Premises to be kept free of Hazardous Materials (as defined below) except to the extent that such Hazardous Materials are stored and/or used in compliance wi th applicable federal, state and local laws, ordinances, rules, regulations and policies, and (ii) it will not cause or permit the Premises to be used to generate, manufacture, refine, transport, treat, dispose of, transfer, produce or process Hazardous Materj.als, except in accordance wi th applicable federal, state and local laws, ordinances, rules, regulations and policies. Lessee agrees to indemnify and hold harmless Lessor from any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses, including, without limitation, reasonable attorneys' fees and disbursements and cost of clean-up, remedial, removal, and 16 ,. .-.....!" -" restoration work required by any governmental agency, incurred by Lessor and resulting from a breach of Lessee's agreements set forth in the preceding sentence. "Hazardous Materials" shall include, without limitation, asbestos, polychlorinated biphenals, petroleum products, any flammable explosives, radioactive materials, hazardous waste, hazardous materials, hazardous or toxic substance or related materials defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U. S. C. ~9601, et seq.), the Resource Conserv(J Uon (lIlcl I{CCOVC ry !\c L, as Amended (42 U.S.A. ~6901, et seq.), the Toxic Substances Control Act, as amended (15 U.S.A. ~2601, et seq.), Clnd ill the .::egulaLions adopted and publications promulgated pursuant thereto, and any applicable state and local laws. 46. SECURITY DEPOSIT. On the Commencement Date, Lessee shall deposit with Lessor the sum of Three Thousand Seven Hundred Fifty Dollars ($3,750.00) as a security deposit to secure the performance by Lessee of all of its obligations under this Lease. Lessor shall return the security deposit to Lessee within ten (10) days after the expiration of this Lease (or any renewal or extension hereof) or its prior termination in accordance herewith, provided that Lessee has fully performed all of its obligations hereunder. Lessor shall have the right to deduct from the security deposit returned to Lessee any amounts required to reimburse Lessor for any expense or cost incurred by Lessor in order to perform any obligations of Lessee hereunder which are not performed by Lessee. Lessor shall not be obligated to keep the security deposit in a segregated account or to pay Lessee interest thereon. 47. WAIVER OF JURY TRIAL. LESSEE AND LESSOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY lUG!!T E:ITljSR OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LEASE AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION THEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LESSEE TO ENTER INTO THIS LEASE. IN WITNESS WHEREOF, the parties hereto have execu ted thi s Lease for the purposes expressed herein, the day and year above written.. WITNESSES: LESSEE: REWJB INVESTMENTS, a Florida general partnership By: F.S. STORE.S, INC., a Florid oration By: President LESSOR: ! il I: ) - __L , ~ / / 01 Di.-;, '):, /~,'L- -- k' I V \.._,~ /c' \/) t_L- Walter Dutch; as Trustee of The Walter Dutch Trust r~_..__.~._ , l-<:i '( 17