Exhibit 3.3
EXHIBIT "D"
AMENDED AND RESTATED LEASE AGREEMENT
THIS AMENDED AND RESTATED LEASE AGREEMENT is made and entered into at
Miami, Dade County, Florida, as of November 19, 1996, by and between GROVE ISLE
ASSOCIATES, LTD., a Florida limited partnership (the "Lessor") and WESTGROUP
GROVE ISLE ASSOCIATES LTD., a Florida limited partnership (the "Lessee").
RECITALS
A. Lessor is the owner in fee simple of the "Real Property" defined below
and has entered into a certain Lease Agreement dated as of October 1, 1993, a
copy of which is attached hereto as Exhibit "B" (the "Existing Lease"), whereby
Lessor leased to Grove Isle Club, Inc., a Florida corporation ("GICI") the Real
Property as well as any and all personal property belonging to Lessor and
situated and/or contained therein (such personal property is herein called the
"Lessor's Personalty").
B. Concurrently herewith, among other things, (i) GICI is assigning to
Lessee the leasehold estate created under the Existing Lease and all of GICI's
other rights under the Existing Lease, and (ii) Lessor, GICI and others are
assigning to Lessee certain other personally used in the operation of the Real
Property, and in connection therewith, Lessor and Lessee have agreed to execute
this instrument in order to amend the Existing Lease.
AGREEMENTS
NOW, THEREFORE, in consideration of the premises as well as the mutual
agreements set forth hereinafter, the Lessor and the Lessee agree as follows:
1. Correctness of Recitals. Each party represents to the other that to its
knowledge, the above recitals are true and correct.
2. Status of Existing Lease. Lessor represents and warrants to the Lessee
that the Existing Lease is in full force and effect without modification, that
there are no uncured defaults thereunder and that all rent and other sums
payable to Lessor thereunder through November 19, 1996 have been paid in full
with the exception of the payment of the Initial Rent Payment due November 19,
1996 in accordance with Article III below plus one-half of the sales tax thereon
(which amounts Lessor acknowledges have been paid to it concurrently herewith),
and that except as aforesaid, there are no unsatisfied obligations of the lessee
thereunder. Lessor further represents and warrants to the Lessee that the
certain Lease dated January 1, 1987 from Lessor to GICI has expired and is of no
further force or effect.
3. Amendment. The Existing Lease is hereby amended and restated in its
entirety to read as follows:
ARTICLE I
Demised Premises
1.1 LESSOR'S DEMISE. Upon the terms and conditions hereinafter set forth,
and in consideration of the payment of the rents and the prompt performance by
the Lessee of the covenants and agreements, to be kept and performed by the
Lessee, the Lessor does lease, let, and demise to the Lessee and the Lessee
hereby leases from the Lessor, the following described premises (including the
"Land", the "Improvements", the "Real Property" and "FF&E" described below, all
of which are collectively called the "Demised Premises") situate, lying, and
being in Dade County, State of Florida:
The land located at 0 Xxxxx Xxxx Xxxxx, Xxxxx, Xxxxxxx, which is legally
described on Exhibit "A". hereto (the "Land") and all improvements thereon
(the "Improvements") (the Land and the Improvements, together with all
easements, servitudes, reversions, remainders, benefits, and other rights
and interests appurtenant thereto is together called the "Real Property");
and
All furniture, furnishings, fixtures, appliances and other equipment (the
"FF&E") located at or affixed to the Real Property and used in connection
with the operation of the Real Property as a hotel, resort and membership
club.
1.2 CONDITIONS. The demise is subject to the following:
(a) All conditions, restrictions, and limitations now appearing of
record;
(b) Taxes and assessments for the year 1996 and all subsequent years;
(c) The rights granted pursuant to Section 15.5 below;
(d) Zoning ordinances of the City of Miami, Florida, and any other
competent governmental body now existing or which may hereafter exist
during the term of this Lease; and
(e) The Lessee's proper performance of all the terms and conditions
contained in this Lease.
ARTICLE II
Term
To have and to hold the Demised Premises for a term commencing on November
19, 1996 (the "Commencement Date") and ending on December 31, 2006 (the
"Termination Date") unless and to the extent such term is sooner terminated or
extended as provided below, in
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which event the Termination Date shall be, and the term of this Lease shall end
on, such earlier or later date, as applicable.
ARTICLE III
Rent
3.1 FIRST LEASE YEAR. Rent for the first Lease Year shall be $1,991,260,
accrued, paid and allocated as follows: (a) $1,000,000 on the Commencement Date
(such amount is herein called the "Initial Rent Payment"), (b) $101,260 on
January 1, 1997; and (c) $73,333.34 on February 1, 1997 and on the 1st day of
each month thereafter to and including January 1, 1998. All such rent payable
pursuant to this paragraph 3.1 is called "First Year Rent" Lessee shall also pay
to Lessor, with each payment of First Year Rent, an amount equal to one-half of
the applicable sales tax thereon. Lessor shall hold the Initial Rent Payment
available for expenditure from time to time in accordance with that certain
Master Agreement dated this date by and among Lessor, GICI, Lessee and others
(the "Master Agreement").
3.2 BASE RENT AFTER FIRST LEASE YEAR.
(a) On February 1, 1998, and on the 1st day of each month thereafter
during the term of this Lease, Lessee shall pay to Lessor in monthly
installments, in advance, as rent accrued, paid and allocated, annual base
rent ("Base Rent") in an amount equal, in any Lease Year, to eight percent
(8%) per annum of Lessor's "Capital Investment" (defined in Section 3.5(c)
below) for that Lease Year, determined in accordance with Section 3.5(c)
below. Lessee shall also pay to Lessor, with each payment of Base Rent, an
amount equal to one-half of the applicable sales tax thereon.
3.3 PARTICIPATION RENT.
(a) In addition to First Year Rent and Base Rent, Lessee shall pay to
Lessor during each Lease Year, as additional rent accrued, paid and
allocated, from any Net Operating Surplus, a portion of such Net Operating
Surplus, as follows:
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(i) The lesser of (x) 50% of Net Operating Surplus for that Lease
Year; or (y) 2% of Lessor's Capital Investment for that Lease Year.
The amounts payable to Lessor under this paragraph are called the
"First Tier Participation".
(ii) After the First Tier Participation for that Lease Year is
paid in full, an amount equal to 50% of the amount by which Net
Operating Surplus for that Lease Year exceeds the sum of the First
Tier Participation for that Lease Year and 8% per annum of Lessee's
Capital Investment for that Lease Year. The amounts payable to Lessor
under this paragraph are called the "Second Tier Participation". The
First Tier Participation and the Second Tier Participation are
sometimes together called "Participation Rent". Participation Rent
shall be paid and determined in the manner set forth in Sections
3.3(b) and (c) below, and Lessee shall also pay to Lessor, with each
payment of Participation Rent, an amount equal to one-half of the
applicable sales tax thereon.
(b) As an example of the computation of Participation Rent, for a
particular Lease Year, assuming that Lessee's Capital Investment for that
Lease Year is $3,000,000 and that Lessor's Capital Investment for that
Lease Year is $11,000,000, Participation Rent for that Lease Year would be
determined as follows:
Assumed Net Operating Surplus: 220,000 440,000 1,000,000
First Tier Participation = the
Lesser of:
50% of Net Operating Surplus or 110,000 220,000 500,000
2% of Lessor's Capital 220,000 220,000 220,000
Investment
First Tier Participation 110,000 220,000 220,000
Assumed Net Operating Surplus 220,000 440,000 1,000,000
(from above)
Less First Tier Participation 110,000 220,000 220,000
(from above)
Balance of Net Operating Surplus 110,000 220,000 780,000
Less 8% of Lessee's Capital 240,000 240,000 240,000
Investment
Balance of Net Operating Surplus (130,000) (20,000) 540,000
50% Second Tier Participation 0 0 270,000
(c) Participation Rent shall be payable in quarterly installments in
arrears commencing on the 1st day of April, 1998 and on the 1st day of each
July, October and January thereafter during the term of this Lease, as
follows:
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(i) The amount of each such installment payable during any Lease
Year shall initially be estimated pursuant to Lessee's operating
budget for that Lease Year, which budget shall be based on the past
results of operations and Lessee's projections for operation during
that Lease Year, and provided to Lessor for approval not later than
November 15 of the previous Lease Year.
(ii) Not later than 120 days after the end of each Lease Year,
the Lessee shall determine and advise Lessor of the actual amount of
actual Net Operating Surplus for that Lease Year, and, within 30 days
thereafter, Lessor shall pay to Lessee the amount, if any, by which
the payments of estimated Participation Rent and sales tax thereon
paid by Lessee during that Lease Year exceeds the Participation Rent
plus one-half of the sales tax actually due, or, if applicable, the
Lessee shall pay to Lessor the amount, if any, by which Participation
Rent plus one-half of the sales tax thereon actually due exceeds the
payments of estimated Participation Rent and sales tax thereon
actually paid by Lessee.
(iii) Lessee shall maintain accurate books and records for the
computation of Net Operating Surplus in accordance with generally
accepted accounting principles consistently applied, shall provide
Lessor with copies of bills, invoices and contracts relative to the
computation of Net Operating Surplus for any period upon request
within 30 days after Lessor receives notice of Lessee's computation
thereof, and shall make its books and records with respect to such
computation available for inspection by Lessor or Lessor's authorized
representative during normal business hours, upon reasonable prior
notice. If Lessor challenges Lessee's computation of Net Operating
Surplus for any Lease Year:
(A) Lessor shall give Lessee notice stating Lessor's
objections within 60 days after Lessor receives notice of
Lessee's computation thereof.
(B) If an independent review performed on behalf of Lessor
("Lessor's Review") by a firm of certified public accountants at
Lessor's sole expense within 60 days after such objection notice
verifies that Lessee's computations of the Net Operating Surplus
are incorrect, Lessor shall give Lessee notice of the error,
accompanied by the appropriate supporting documentation.
(C) Within 60 days after receipt of such notice from Lessor,
the Lessee shall have the right to arrange for an independent
review
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performed on behalf of Lessee ("Lessee's Review") at Lessee's
sole expense.
(D) If Lessee fails to arrange for a Lessee's Review within
the time provided above, then the results of the Lessor's Review
shall be deemed conclusive, and the parties hereto shall promptly
make all adjustments between themselves to account for any
underpayments or overpayments. If, however, Lessee exercises its
rights to obtain a Lessee's Review, then subject to the following
paragraphs, the Net Operating Surplus indicated by Lessor's
Review and Lessee's Review, respectively, shall be averaged and
the parties hereto shall promptly make all adjustments between
themselves to account for any underpayment or overpayment, based
on such average of the net results of Lessor's Review and
Lessee's Review (the "Averaged Result").
(E) Notwithstanding paragraph (D) above, if the difference
between (X) the Averaged Result and (Y) the results of Lessor's
Review exceeds $50,000, then Lessee shall have the right at its
own election, to either treat the Averaged Result as $50,000
under or over (as applicable) the result of Lessor's Review, or
to proceed under paragraph (F) below.
(F) If Lessee so elects, then Lessee and Lessor shall each
direct the firm of certified public accountants performing its
review to confer with the other party's firm and mutually
determine a third firm of certified public accountants to perform
a third review (the "Neutral Review"), and if Lessee exercises
this option, the results of Neutral Review shall be deemed
conclusive and the parties hereto shall promptly make all
adjustments between themselves to account for any underpayment or
overpayment based on the results of such Neutral Review and the
parties shall share equally the cost of the Neutral Review.
(G) If any Lessor's Review or, if Lessee elects to obtain a
Neutral Review with respect to that Lessor's Review, that Neutral
Review, indicates that Lessee's computation of Net Operating
Surplus for any Lease Year differs from actual Net Operating
Surplus for that Lease Year by 3% or more, Lessee shall promptly
reimburse Lessor for all of Lessor's reasonable accountant's fees
incurred for that Lessor's Review or Neutral Review.
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3.4 CERTAIN COMPUTATIONS. Lessor and Lessee agree that Lessor's Capital
Investment for the first Lease Year is $11,000,000. Base Rent and estimated
Participation Rent for all periods after the first Lease Year shall be
determined as of and not later than, November 15 of the immediately preceding
Lease Year (November 15 of the Lease Year immediately preceding any Lease Year
is the "Calculation Date" for that Lease Year), to take effect on the
immediately succeeding February 1 in the case of Base Rent and April 1, in the
case of Participation Rent. There shall be no adjustments in Base Rent or
Participation Rent paid or payable during any Lease Year on account of changes
to any party's Capital Investment occurring after the Calculation Date for such
Lease Year, provided, however, that Participation Rent initially payable based
on estimated Net Operating Surplus shall be adjusted based on the actual results
of operations pursuant to Section 3.3(c)(iii) above.
3.5 CERTAIN DEFINITIONS. When used in this Lease:
(a) The term "Lease Year" means (a) the period commencing on the
Commencement Date and ending on December 31, 1997 (which period shall be
the first Lease Year) and (b) each period of 12 consecutive months
thereafter during the term of this Lease, the first of which shall commence
on January 1, 1998, and end on the day immediately preceding the first
anniversary thereof, and the remainder of which shall commence on
termination of the immediately preceding Lease Year, provided, however,
that no Lease Year shall extend beyond the Termination Date.
(b) "Net Operating Surplus" for any period means the amount, if any,
by which Operating Revenue for that period exceeds the Operating Expenses
for that period.
(c) The "Capital Investment" of any party for any Lease Year means an
amount, determined as of the Calculation Date for such Lease Year, equal
to:
(i) in the case of the Lessee, the sum of (w) $1,000,000; (x) any
amounts expended by Lessee for "Qualified Capital Improvements"
(defined below), excluding any of the Initial Rent Payment disbursed
to Lessee for such purpose; (y) any amounts expended by Lessee for
"Operating Shortfalls" defined in the Master Agreement (excluding any
of the Initial Rent Payment disbursed to Lessee for such purpose); and
(z) the aggregate amounts, if any, of the Additional Equity
Requirement paid to Lessor pursuant to Section 4.2 of the Master
Agreement, from the Commencement Date through (but not including) the
Calculation Date for such Lease Year, provided. however, that in no
event shall Lessee's Capital Investment exceed $3,000,000 unless so
agreed by Lessor in writing hereafter, and provided. further, that in
no event shall Lessee's Capital Investment be
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increased by deposits into the "Replacement Reserve (defined below);
and
(ii) in the case of the Lessor, $11,000,000 minus the amount, if
any, of any portions of the Initial Rent Payment disbursed to Lessor
pursuant to Section 4.1 of the Master Agreement and/or Additional
Equity Requirement paid to Lessor pursuant to Section 4.2 of the
Master Agreement, all on a cumulative basis from the Commencement Date
to (but not including) the Calculation Date for such Lease Year.
(d) The term "Operating Revenue" for any period means the gross amount
of all receipts, revenue and income, of every kind or nature, derived
during that period by or on behalf of Lessee from the Demised Premises or
the operation of the Demised Premises, including, without limitation, sales
of goods and/or services by Lessee at or from the Demised Premises, i.e.,
room revenues, food and beverage revenues, telephone revenues, proceeds of
any business interruption insurance paid to Lessee, other insurance
proceeds paid to Lessee but not used for Restoration, all other department
revenues, "Club Dues" defined below, rents and other income from tenants
and other income, paid or to be paid at any time to the Lessee (or to any
of its agents for the Lessee's account) by any person, determined on an
accrual basis, in accordance with generally accepted accounting principles
(consistently applied), but in no event shall Operating Revenue include:
(i) security deposits paid by or on behalf of tenants or others
under valid leases or other agreements unless and until such security
deposits are forfeited by, and Lessee shall have no further obligation
to return such deposit to, the tenant or other person paying the same;
(ii) any insurance proceeds used for Restoration; or
(iii) eminent domain proceeds.
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(f) The term "Operating Expenses" for any period shall mean the
amounts paid or incurred by or on behalf of Lessee during that period in
connection with the maintenance or operation of, or otherwise in connection
with, the Demised Premises, determined on an accrual basis, including,
without limitation:
(i) costs and expenses related to department revenues, including,
without limitation, rooms, food, beverages, telephones and other
income,
(ii) all payments required to be made pursuant to any management
or similar agreement, so long as the management fee does not exceed 4%
of Operating Revenue for that period (the "Management Fee"),
(iii) undistributed expenses, including without limitation,
general and administrative, marketing, utilities, operations and
maintenance and other expenses, as appropriate, provided, however,
that with respect to expenses incurred by Lessee for travel to and
from the Demised Premises by Lessee's partners, officers, agents, and
employees, the amount of such expenses includable as Operating
Expenses shall not exceed $2,000 in any one month during the first
Lease Year and $1,500 in any month thereafter, and provided, further
that expenses incurred by Lessee for salaries, wages and salary
compensation of persons not based at the Property full-time (other
than for the services of the Regional Manager of Noble House Hotels &
Resorts) shall not exceed $50,000 in any one calendar year (or the
equivalent for any shorter period),
(iv) legal, accounting, appraisal and other professional fees and
disbursements, including annual fees and other amounts (including
indemnity payments), payable annually or otherwise,
(v) taxes, assessments, insurance premiums, and impositions of
any type,
(vi) replacement reserves not to exceed 3% of Operating Revenue
for that period, to the extent such reserve is actually funded as
required under this Lease (provided, however, that for the purpose of
this subsection 3.5(e)(vi) and Section 15.3 below only, Operating
Revenue shall be computed without regard to Club Dues,
(vii) the cost of any Restoration in excess of insurance proceeds
available therefor, and
(viii) all Rent and other amounts payable by Lessee under or
pursuant to this Lease.
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Notwithstanding anything herein to the contrary, it is understood
and agreed that the services included in the Management Fee do not
include accounting services, that Lessee and Lessee's manager may
avail themselves of the centralized accounting services offered by
their affiliates, and that the "Allocable Amount" (defined below) of
the cost thereof shall be included as Operating Expenses.
Notwithstanding the foregoing, Operating Expenses will not
include (A) for any expense which is allocable to both the Demised
Premises and other property owned or managed by Lessee's affiliates,
any portion in excess of the "Allocable Amount" of such expense; (B)
depreciation or amortization, (C) any expenses that in accordance with
generally accepted accounting principles (consistently applied),
should be capitalized (other than current charges for any such
expenses enumerated above), (D) any item of expense that would
otherwise be considered as an Operating Expense pursuant to the
provisions above but which is actually paid directly by any tenant as
required by such tenant's lease or other agreement, (E) principal,
interest or other charges payable to the holder of any Permitted
Mortgage, (F) interest on any indebtedness (other than sums payable
under equipment leases or to the seller of any FF&E or other item
purchased by Lessee, or to any arms' length third party who finances
such purchase of FF&E), (G) Participation Rent for the current period,
or (H) any late charges, default interest and any other costs
resulting from Lessee's failure to perform its obligations under this
Lease
The "Allocable Amount" of any expense means that portion of
expense which is fairly attributable to the Demised Premises.
3.6 RENT; PLACE OF PAYMENT. Rent shall be payable to Lessor at its notice
address set forth below or such other place as the Lessor may specify in writing
from time to time. "Rent", as used in this Lease means First Year Rent, Base
Rent and Participation Rent.
3.7 NET LEASE. All Rent shall be net to Lessor, so that this Lease shall,
except as hereinafter provided to the contrary, yield net to Lessor the Rent to
be paid during the term of this Lease, less one-half of any sales tax thereon.
Accordingly, the Lessee shall pay one-half of all sales tax on Rent, as well as
all costs, expenses, and obligations of every kind or nature on, or with respect
to, the Demised Premises, which may arise or become due during the term of thin
Lease, including, without limitation, real estate taxes and insurance premiums,
but specifically excluding the Lessor's one-half share of sales tax and any
amounts payable by Lessor pursuant to other provisions of this Lease or any
document executed and delivered by Lessor in connection herewith. Lessor shall
pay to the State of Florida as and when due Lessor's
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one-half share of all sales tax on Rent, together with the remaining one-half
thereof paid by Lessee. Except for Lessee's obligations under Section 13.4 of
this Lease, nothing in this Lease shall be deemed to require the Lessee to pay
or discharge any liens or mortgages of any character which now exists or which
may be placed upon the Demised Premises by the Lessor or suffered or permitted
by the Lessor.
ARTICLE IV
Option to Extend
Provided that the Lessee is not in default under this Lease, and in
addition to the "Right of First Offer" (defined below), the Lessee shall have
the right to extend the term of this Lease for two (2) additional ten (10) year
terms on the same terms and conditions as contained in this Lease (each such
option to extend is called an "Extension Option"), provided Lessee gives Lessor
written notice of Lessee's intention to exercise such Extension Option at least
nine (9) months, but not more than twelve (12) months, prior to the Termination
Date, or the first extended Termination Date, as applicable.
ARTICLE V
Termination
5.1 PAYMENT TO LESSEE. Provided Lessee exercises both Extension Options and
is not then in default hereunder, then Lessor will pay to Lessee the
"Termination Payment". The "Termination Payment" means fifty percent (50%) of
the amount by which the value of the Demised Premises on the Termination Date
exceeds $11,000,000.00. The Termination Payment shall be due on the 10th day
after the amount thereof is determined pursuant to Section 5.2 below, but if
Lessor fails to provide a "Lessor's Appraisal" within 60 days after Lessor
receives "Lessee's Appraisal" (each defined below), then such payment shall be
due on the 60th day after Lessor receives Lessee's Appraisal. The Termination
Payment shall not be a personal obligation of the Lessor, and the Lessee's
recourse for recovery of the Termination Payment shall be limited to the Demised
Premises and the Retained Club Rights. In no event shall the Termination Payment
or any part thereof be due or payable if the Lease is terminated for any reason
(other than a material and/or willful default or breach by the Lessor) before
the end of the 30th Lease Year.
5.2 DETERMINATION OF VALUE. For the purpose of this Article, the value of
the Demised Premises shall be the fair market value of the Demised Premises
(unencumbered by this Lease), the Club and the Retained Club Rights as reflected
in an appraisal report prepared by an MAI appraiser selected by Lessee obtained
by Lessee within sixty (60) days following the Termination Date (the "Lessee's
Appraisal"). If Lessor wishes to contest the value as shown in such appraisal,
Lessor shall obtain, within 60 days after Lessor's receipt of the Lessee's
Appraisal, an appraisal report
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prepared by an MAI appraiser (the "Lessor's Appraisal"). If the value of the
Demised Premises reflected in Lessor's Appraisal assigns a value which is 110%
or greater than the value reflected on the Lessee's Appraisal, then the
respective parties shall each direct the appraiser performing its appraisal to
select, mutually with the other party's appraiser, a third MAI appraiser to
perform a comparable appraisal (the "Third Appraisal") and the value of the
Demised Premises shall be the value reflected in the Third Appraisal. If the
value shown by the Lessor's Appraisal is less than 110% of the value shown by
the Lessee's Appraisal, then the value of the Demised Premises shall be deemed
to be the average of the value shown in the Lessee's Appraisal and the Lessor's
Appraisal. Lessee shall pay the cost of Lessee's Appraisal, Lessor shall pay the
cost of any Lessor's Appraisal, and Lessee and Lessor shall each bear one-half
of the cost of any Third Appraisal.
5.3 LIEN. Lessor's obligation to pay the Termination Payment to Lessee is
and shall be a lien on the Demised Premises as of the date of this Lease, which
lien is subordinate to any "Permitted Mortgage" defined below.
5.4 TERMINATION. On termination of this Lease:
(a) Lessee shall assign to the applicable "Lessor Parties" (defined
below), as applicable, without representation or warranty, the right to use
any and all trademarks, trade names and fictitious names then in use by
Lessee in connection with the Demised Premises or any component thereof,
provided, however, that Lessee shall be under no obligation to assign any
trademark, trade name or fictitious name which includes the terms
"Westgroup", "Noble" or "Noble House", except that in the case of any such
marks or names used by Lessee pursuant to a license, Lessee shall only be
required to acknowledge termination of such license.
(b) Lessee shall assign or reassign, as applicable, to the applicable
Lessor Parties, any and all of its remaining rights under the Permits, such
additional permits obtained by Lessee in connection with its operation of
the Demised Premises, the Leases, the Contracts and the Other Rights (each
defined in the Master Agreement) in existence on termination of this Lease,
to the extent assignable, it being understood and agreed that (i) Lessor
shall not be required to assume any obligations of Lessee under the
Contracts or the Leases so assigned; and (ii) unless and to the extent
expressly required under specific provisions of this Lease or any other of
the "Closing Deliveries" (defined in the Master Agreement) Lessee shall not
be required to maintain or keep in existence any such permits, Contracts or
Other Rights and may terminate any Leases or Contracts not assumed by
Lessor.
(c) The assignment and other rights granted to Lessee by the Lessor
Parties pursuant to Sections 15.7, 15.8, 15.9 and 15.10 below shall
automatically terminate, but such termination shall not apply to or affect
any such rights
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accrued prior to such termination. In this regard, on termination of this
Lease, at the request of the applicable Lessor Parties, Lessee shall
execute and deliver such instruments which may be necessary to effectuate
such termination of Lessee's rights under Sections 15.7, 15.8, 15.9 and
15.10, and to restore the same to the applicable Lessor Parties, all free
and clear of any options, agreements, liens, security interests and
encumbrances created by any act of Lessee.
(d) Unless this Lease is terminated on account of the material and/or
willful default of Lessee, Lessor shall pay to Lessee an amount equal to
the cost of the Inventory and Consumables (defined in the Master Agreement)
then in existence, which cost shall be evidenced by copies of paid invoices
therefor or such other documentation reasonably requested by Lessor.
(e) Lessee shall provide to Lessor a schedule of Lessee's accounts
receivable in existence on termination of this Lease, which schedule shall
be consistent with the Lessee's schedules of Operating Revenue through the
date of such termination. If Lessor receives payment of any accounts which
are listed on that schedule and are collected following termination of this
Lease, it shall promptly remit the same to Lessee. In this regard, Lessor
shall apply payments from each account debtor to the oldest account owed by
that debtor, unless the payor designates a different account to which such
payment shall be applied (in which event it shall be applied to the account
so designated); or the account debtor has disputed the account to which
such payment would otherwise be applied (in which event, it shall be
credited to the oldest account which has not been disputed).
(f) Club Dues shall be prorated as of the Termination Date, and the
parties shall make such payments to each other as are required to account
for any credit owed either party as a result of such proration.
5.5 POSSESSION. Upon termination of this Lease, the Lessee shall peaceably
and quietly deliver to the Lessor possession of the Demised Premises.
ARTICLE VI
Taxes
6.1 LESSEE'S OBLIGATIONS. The Lessee shall pay, before any fine, penalty,
interest, or cost may be added, become due, or be imposed for nonpayment
thereof, all taxes, assessments, water and sewer rents, rates and charge,
transit taxes, charges for public utilities, excises, levies, licenses and
permit fees and other governmental charge, general and special, ordinary and
extraordinary, unforeseen and foreseen, of any kind and nature, which at any
time during the term of this Lease may be assessed,
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levied, confirmed, imposed upon, or grow to become due and payable out of or in
respect of, or become a lien on, the Demised Premises, or any part thereof or
arising out of the rent received by the Lessee from subtenants, any use or
occupation of the Demised Premises by Lessee, and such franchises as may be
appurtenant to the use of the Demised Premises, or any document (to which the
Lessee is a party) creating or transferring an interest or estate in the Demised
Premises, provided, however, that Lessor shall be responsible for payment of
one-half of any sales tax on Rent hereunder. In no event, however, shall the
Lessee be required to pay (a) municipal, state, or federal income taxes assessed
against the Lessor or its income, or (b) the Lessor's municipal, state, or
federal capital levy, or (c) the Lessor's estate, succession, inheritance, or
transfer taxes, or (d) corporate franchise taxes imposed upon any corporate
owner of the fee of the Demised Premises, or (e) any tax on any other activities
of GICI or Lessor, but Lessee shall pay all ad valorem real and personal
property taxes on the Demised Premises.
6.2 MODE OF PAYMENT. Subject to Section 13.4 below, Lessee shall pay the
taxes and other charges enumerated in this Article before the date that such tax
or other charge would become delinquent in accordance with the then applicable
law governing such payments, or if earlier, the date required under any
Permitted Mortgage if Lessor specifically notifies Lessee of the earlier date on
which a particular payment is due under a Permitted Mortgage. If, however, the
Lessee desires to contest the validity of any tax or tax claim, it may do so
without being in default hereunder, provided it gives the Lessor written notice
of its intention to contest the tax or claim, and that any such contest stays
the enforcement against the Demised Premises of such tax or claim.
6.3 LESSEE'S DEFAULT. If the Lessee fails, refuses, or neglects to make any
payment required in this Article, the Lessor may do so. In that event, the
Lessee shall, upon the Lessor's demand, repay to Lessor the amounts so paid,
including reasonable attorneys fees and all other expenses reasonably incurred
because of or in connection with the payments, together with interest thereon at
the "Default Rate" defined below. The Lessor may collect or enforce any payment
in the same manner as though it were an installment of Rent specifically
required by the terms of the Lease to be paid by the Lessee, on the day when the
Lessor demands repayment of or reimbursement therefor.
6.4 PRORATION. Notwithstanding anything to the contrary in this Lease, the
taxes for the years in which the Commencement Date and Termination Date occur
shall be prorated proportionately between Lessor and Lessee.
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ARTICLE VII
Construction Liens
The Lessor's interest in the Demised Premises shall not be subject to liens
for improvements made by the Lessee and the Lessee shall not subject the
Lessor's interest in the Demised Premises to any mechanics' or materialmens'
liens or other construction lien. If, notwithstanding the foregoing sentence,
such a lien becomes effective against the Lessor's interest in the Demised
Premises, the Lessee shall cause the Demised Premises to be released therefrom
in any manner permitted under Florida law within thirty (30) days after written
notice from the Lessor, provided, however, that Lessee shall have no such
obligation if such lien arises from Lessor's failure to provide funds to Lessee
to the extent that Lessor is obligated to do so under section 4.1 of the Master
Agreement.
ARTICLE VIII
Mutual Indemnification
During the entire term of the Lease, each party will indemnify and hold
harmless the other against any and all claims, debts, demands, or obligations
which may be made against such other party or against its interest in the
Demised Premises, arising out of any act or omission of the indemnifying party
or any contractor, agent, licensee or invitee of such indemnifying party. If it
becomes necessary for any indemnified party to defend any action seeking to
impose any such liability, the indemnifying party will pay such indemnified
party all reasonable costs of court and reasonable attorneys' fees incurred by
such indemnified party in effecting such defense in addition to all other sums
that such indemnified party may be called upon to pay by reason of the entry of
a judgment against it in the litigation in which such claim is asserted.
ARTICLE IX
Insurance
9.1 CASUALTY INSURANCE. At all times during the term of this Lease, the
Lessee will keep insured the Demised Premises, including all buildings and
improvements upon the Demised Premises, under a special cause of loss (all risk)
policy, with n extended coverage", as well as against windstorm and flood. The
amount of insurance shall at all times be sufficient to prevent any party in
interest from being or becoming a co-insurer on any part of the risk, and in the
case of the extended coverage insurance, shall not be less than 90% of the full
insurable value, but in no event less than the amount required pursuant to the
Existing Mortgage. All of the insurance policies shall include the Lessor and
the mortgagee under any Permitted Mortgage as additional insured parties and
shall fully protect both the Lessor, such mortgagee and the Lessee, as their
respective interests may appear and shall provide for sixty (60) days prior
written notice of cancellation to Lessor and
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such Mortgagee. All insurance proceeds received for the destruction of buildings
or improvements by fire, windstorm, flood, or other casualty shall be deposited
in a joint account in a bank designated by the Lessee in Dade County, Florida
and shall be made available to the Lessee to pay the cost of the construction,
restoration or repair, as the case may be (including associated soft costs such
as permitting, bonding, design, engineering, and reasonable professional fees),
of any building, buildings or other improvements damaged or destroyed by fire,
windstorm, or other casualty for which insurance is payable (such construction,
restoration or repair is herein called "Restoration"). The Lessor and the Lessee
shall periodically pay out these funds from the joint account on the estimate of
any reliable and authorized architect licensed in the State of Florida, who must
certify that the amount of the estimate is reasonable and is being applied to
the payment of the costs of the Restoration. However, except as provided below,
regardless of the sufficiency of insurance proceeds, the Lessee shall provide
any funds necessary for the Restoration which are in excess of available
insurance proceeds, shall assure the application of the money for such purpose,
and shall effectuate Restoration of any buildings and improvements, or any part
thereof, that are destroyed or damaged by fire, windstorm, or other casualty.
The rebuilt or repaired building or improvement, or the replaced or repaired
personal property on the Demised Premises, shall be of the same or higher value
as prior to the damage or destruction, and shall be rebuilt and ready for
occupancy within fifteen (15) months from the time of the loss or destruction,
which 15-month period for reconstruction shall be extended by delays caused
without the Lessee's fault or neglect by act of God, strikes, lockouts, or other
conditions (other than matters of finance) beyond the Lessee's control.
9.2 DAMAGE NEAR END OF TERM. Notwithstanding anything herein to the
contrary, if the Improvements are damaged or destroyed so that operation thereof
as contemplated under this Agreement is significantly impaired or impracticable
and such damage or destruction occurs within the last eighteen months of the
term of this Lease (without giving effect to any unexercised Extension Options),
then Lessee shall have no obligation to effect any Restoration, and unless
Lessee agrees to do so, this Lease shall terminate as of the date of such damage
or destruction and the Lessee shall have no further Extension Options, provided,
however, Lessee shall ensure that the Demised Premises comply with all Legal
Requirements with respect to casualty losses of such type (for example, any
partially damaged buildings shall be secured and made safe from collapse or
further damage), and shall be entitled to any available insurance proceeds for
such purpose. Lessor shall be entitled to receive any insurance proceeds not
used by Lessee in accordance with the immediately preceding sentence.
9.3 INSURANCE CLAIMS. Except as specifically provided otherwise herein, no
damage or destruction to any building or improvements by fire, windstorm, or any
other casualty shall be deemed to entitle the Lessee to surrender possession of
the Demised Premises, to terminate this Lease, to violate any of its
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provisions, or to cause any rebate or reduction in the Rent when due or
thereafter becoming due under its terms. If the Lease is cancelled because of
the Lessee's default while any obligation from an insurance company to pay for
all or any part of the damage remains outstanding, the claim against the
insurance company shall, upon cancellation of the Lease, be deemed immediately
to become the absolute and unconditional property of the Lessor.
9.4 PROCEEDS PAYABLE TO MORTGAGEE. Any mortgagee holding a Permitted
Mortgage may, in accordance with its terms, require that the insurance proceeds
be paid to it and thereafter disbursed for the cost of repair and restoration in
accordance with such mortgagee's own construction disbursement procedures, but
subject to Section 9.2 above, the Lessee shall still be required to provide any
funds necessary for the Restoration which are in excess of available insurance
proceeds.
9.5 DAMAGES; INSURANCE PROCEEDS; JOINT BANK ACCOUNT. If the Lessee is not
then in default under this Lease, then Lessee shall be paid-any excess money
received from insurance remaining after the building or buildings are
reconstructed or repaired, in which event such amounts shall be included as
Operating Revenue. If, after damage or destruction caused by fire, windstorm, or
other cause, the Lessee does not commence Restoration within 6 months from the
date of payment of the loss and prosecute the Restoration so that it will be
completed within fifteen (15) months after the damage or destruction occurs,
then Lessee shall pay to the Lessor the amount collected, or the balance thereof
remaining in the joint account, plus any additional funds required to complete
such Restoration. If the Lessee is obligated under this Lease to effectuate any
Restoration but fails to so do within the time specified, the Lessor may
terminate this Lease and retain the amount as liquidated and agreed upon
damages. The 15-month period for Restoration shall be extended by delays caused
without the Lessee's fault or neglect by act of God, strikes, lockouts, or other
conditions (other than matters of finance) beyond the Lessee's control.
9.6 DIRECT REPAYMENT. Notwithstanding the above, if the insurance proceeds
are $25,000 or less, no joint bank account shall be created but the proceeds
shall be paid directly to the Lessee, which shall use the funds to effectuate
the Restoration.
9.7 BUSINESS INTERRUPTION. The Lessee shall also at its sole expense obtain
for, deliver to and maintain for the benefit of, the Lessee and Lessor during
the term of this Lease, business interruption/extra expense insurance, covering
loss of revenue at the Demised Premises.
9.8 EVIDENCE OF INSURANCE. The Lessee shall deliver to the Lessor certified
certificates of insurance with original signatures, along with the receipted
bills evidencing payment of the premiums for them. However, nothing contained
herein shall prohibit the Lessee from financing the premiums and if Lessee does
so, such receipts shall evidence that the installment premium
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payment or payments are paid at or before their respective maturities. If,
however, the Demised Premises are encumbered by a "Permitted Mortgage" (defined
below) and if the terms of that mortgage require the Lessee to cause the
originals of the policies to be delivered to the mortgagee, the Lessee shall
deliver to the Lessor duplicate certificates of the policies.
9.9 LIABILITY INSURANCE. The Lessee shall also at its sole expense obtain
for, deliver to and maintain for the benefit of, the Lessee and Lessor during
the life of this Lease liability insurance policies relating to the Demised
Premises in an amount not less than $10,000,000. The Lessee shall pay promptly
when due any premiums on such insurance policies and renewals thereof.
ARTICLE X
Sale and Assignment
10.1 BY LESSOR.
(a) FIRST THREE LEASE YEARS. Except as expressly permitted under
Article 13 below with respect to Permitted Mortgages, the Lessor may not
sell, transfer, convey, grant options with respect to, or otherwise dispose
of, or agree to sell, transfer, convey, grant options with respect to, or
otherwise dispose of any or all of its interest in the Demised Premises or
any part thereof (any such disposition, transaction or agreement is herein
called a "Transfer") for the first three (3) Lease Years.
(b) RIGHT OF FIRST OFFER. After the first three (3) Lease Years,
except as expressly permitted under Article 13 below with respect to
Permitted Mortgages, the Lessor shall not cause, suffer or permit any
Transfer unless (i) GICI simultaneously Transfers to such transferee its
retained rights with respect to the Club (the "Retained Club Rights"), and
(ii) the transferee assumes the obligations of Lessor, GICI and "Yacht
Club" defined below, as applicable, under this Lease and the "Sovereignty
Lease" defined below; and (iii) such transaction is a bona fide, arms'
length transaction, and (iv) Lessor and GICI have first notified the Lessee
in writing of their intention to offer the Demised Premises and the
Retained Club Rights for sale, which notice shall include the material
terms and conditions of the proposed Transfer (e.g., price, terms,
financing, and all other material terms) and afforded the Lessee the prior
right (the "Right of First Offer") to purchase or otherwise acquire the
Demised Premises or such part thereof and the Retained Club Rights on the
terms and conditions stated in such notice. Such notice is called a "Notice
of Intent". Such Notice of Intent shall be deemed Lessor's offer to Lessee
to make such Transfer to Lessee on the terms stated therein.
(c) PROCEDURE FOR RIGHT OF FIRST OFFER. The Lessee shall exercise its
Right of First Offer granted by giving
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written notice (a "Notice of Exercise") to the Lessor within thirty (30)
days after it receives the Lessor's Notice of Intent. Any Notice of
Exercise shall be deemed Lessee's acceptance of Lessor's offer made
pursuant to its Notice of Intent. If the Lessee fails to give a Notice of
Exercise within thirty (30) days after it receives Lessor's Notice of
Intent, and the Lessor subsequently makes a Transfer under the provisions
which were stated in such Notice of Intent, the above prohibition against
Transfer shall expire and Lessee's Right of First Offer shall not apply to
any subsequent offer on the same terms as set forth above.
(d) CLOSING. If Lessee delivers any Notice of Intent, the parties
shall mutually agree upon the time and place of closing (which may not be
more than fifty (50) miles from the Demised Premises unless both parties so
consent), but in the absence of such agreement, a reasonable time and
place. At such closing (i) the Lessee shall pay to Lessor and GICI (by good
certified check of a bank or trust company or by Federal Reserve wire
transfer) the cash portion, if any, of the applicable purchase price; (ii)
the Lessor and GICI shall convey good and marketable title to the Demised
Premises and the Retained Club Rights to the Lessee, free and clear of all
encumbrances and title defects other than those listed on Exhibit "C"
hereto (but no such conveyance shall be subject to the Existing Mortgage or
any other Permitted Mortgage unless Lessee specifically consents thereto)
and those which arose at the Lessee's request or by virtue of its tenancy;
and (iii) the Lessor, GICI and Lessee shall execute all documents which may
be necessary to effectuate the closing and the transfer of title
contemplated hereunder.
(e) ACKNOWLEDGMENTS. Any third party purchaser shall be required to:
(i) affirmatively assume the obligations of Lessor, GICI, and "Yacht Club"
defined below, as applicable, under this Lease and the "Sovereignty Lease"
defined below; (ii) acknowledge that title is transferred subject to this
Lease and Lessee's rights hereunder, including, without limitation,
Lessee's rights to the Termination Payment and this Right of First Offer.
(f) ASSIGNMENT TO AFFILIATE. Notwithstanding said paragraphs (a) or
(b) above, nothing herein shall be construed to prohibit Lessor from
assigning to GICI or another person or entity which controls, is controlled
by, or is under common control with Lessor ("Lessor's Affiliate"), the
Lessor's right to receive Rent only under this Lease, provided, however,
that no such assignment shall be binding on Lessee unless and until Lessee
shall have received written notice thereof, and no such assignment shall be
deemed an assignment or transfer of any interest in the Demised Premises to
a Lessor's Affiliate or constitute an assignment of, or release of Lessor
from, any obligations under this Lease nor shall anything herein be
construed to permit such assignment, transfer or release.
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10.2 BY LESSEE.
(a) FIRST THREE LEASE YEARS. The Lessee may not make any Transfer for
the first three (3) Lease Years.
(b) AFTER THIRD LEASE YEAR. After the first three (3) Lease Years,
Lessee may assign this Lease (x) to an entity in which the Lessee or its
general partner or the majority shareholder of its general partner
maintains a majority interest ("Lessee's Affiliate"), or (y) to an entity
having both the financial capability to perform the obligations of Lessee
hereunder, and experience and expertise in the ownership or management of
luxury resorts similar to the resort operated by Lessee at the Demised
Premises (herein, a "Qualified Assignee"), provided, that
(i) in each case, the assignee expressly assumes and agrees, for
Lessor's express benefit, that it will perform every covenant of this
Lease which, by its terms, the Lessee agrees to keep and perform;
(ii) in the case of an assignment under clause (y),
(A) Lessee shall have first notified Lessor of its intention
to offer its leasehold estate and the Club for sale by giving the
Lessor and GICI a Notice of Intent, affording to Lessor a Right
of First Offer with respect to such leasehold estate and the
Club, on the terms and conditions stated in such notice. Such
Notice of Intent shall be deemed Lessee's offer to Lessor and
GICI to make such Transfer on the terms stated herein. The time
and procedures for acceptance of such offer and of consequences
of acceptance and non-acceptance of such offer, shall be as set
forth in Sections 10.1(c) and (d) above, substituting Lessee for
Lessor and GICI and vice-versa, and reflecting that the leasehold
estate and Club (and not the Demised Premises and the Retained
Club Rights) shall be assigned, and that title to the Demised
Premises may be subject to each of the matters listed on Exhibit
"C" hereto, including any Permitted Mortgage.
(B) Lessor shall have consented to such assignment
(provided, however, that Lessor shall not be entitled to deny or
withhold such consent unless the proposed assignee is not a
Qualified Assignee, and Lessor shall have no right to charge
Lessee any fee or other sum for such consent or for the cost of
ascertaining the financial capability,
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experience and expertise of the proposed assignee); and
(iii) in either case, Lessee shall provide Lessor with copies of
the instruments effectuating such assignment and assumption.
If Lessee's interest in and to this Lease or the Demised Premises is
assigned or transferred to a Lessee's Affiliate pursuant to clause (x),
Lessee's liability for the performance of every term, condition, covenant,
or agreement contained herein shall remain unimpaired, unreleased, and in
full force and effect. If Lessee's interest in and to this Lease or the
Demised Premises is assigned or transferred to a Qualified Assignee (other
than a Lessee's Affiliate), then the assignor shall be released from all
obligations coming due hereunder following the effectiveness of such
assignee's assumption.
ARTICLE XI
Condemnation
11.1 EMINENT DOMAIN; CANCELLATION. If, at any time during the term of this
Lease, all or any portion of the Demised Premises is taken, appropriated or
condemned by reason of eminent domain, the Lessor and Lessee shall divide the
proceeds and awards in the condemnation proceedings, xxxxx the Rent, and make
other adjustments in a just and equitable manner under the circumstances. If the
parties cannot agree on a just and equitable division, abatement of Rent, or
other adjustments within thirty (30) days after the award has been made, the
disputed matters shall, by appropriate proceedings, be submitted to a court
having jurisdiction of the subject matter for its decision and determination. If
legal title to the entire Demised Premises is wholly taken by condemnation, the
Lease shall be cancelled.
11.2 APPORTIONMENT. The parties intend that, upon condemnation, the parties
shall share in their awards to the extent that their respective interests are
depreciated, damaged, or destroyed by the exercise of the right of eminent
domain.
ARTICLE XII
Construction
12.1 CAPITAL IMPROVEMENTS. This Lease is executed with the understanding
and agreement that the Lessee may, but shall not be obligated to, alter, expand,
renovate and/or remodel the existing Improvements or construct additional
buildings or improvements on the Demised Premises and in connection therewith,
perform any required demolition of the existing Improvements, all in accordance
with the terms hereof. If Lessee elects to undertake any such work, it shall do
so only if the work so undertaken will constitute a Qualified Capital
Improvement, and Lessee will not undertake any capital improvements to the
Demised Premises unless they will
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constitute a Qualified Capital Improvement. A "Qualified Capital Improvement"
means any capital improvements to the Demised Premises (including FF&E purchased
as part of any restoration, renovation, or remodeling) which (a) are consistent
in general concept to Exhibit "D" hereto (it being agreed that Lessee may in its
discretion make refining adjustments to such concepts); (b) are made in a good
and workmanlike manner, (c) are in accordance with all applicable Legal
Requirements, and (d) do not violate any provision of this Lease. "Legal
Requirements" means all laws, statutes, codes, ordinances, orders, judgments,
decrees, injunctions, rules, regulations, permits, licenses, authorizations,
directions and requirements of, and agreements with, all governments,
departments, commissions, boards, courts, authorities, agencies, officials and
officers, foreseen or unforeseen, ordinary or extraordinary, and any
restrictions or agreements of record, which now or at any time hereafter may be
applicable to the Demised Premises or any part thereof, or any of the adjoining
sidewalks, streets or ways, or any use or condition of the Demised Premises or
any part thereof or any persons from time to time employed thereon or occupants
thereof or any business conducted therefrom; including, but without limiting the
generality of the foregoing, all zoning, building and land use, noise
abatements, occupational health and safety and other governmental requirements
relating to health, safety, welfare and environmental protection.
12.2 LESSEE TO BEAR EXPENSES. Subject to (a) the terms and conditions of
any separate agreement between Lessor and Lessee which may be entered into
hereafter and (b) Lessor's obligation with respect to the Initial Rent Payment,
the Lessee shall pay the entire cost of all improvements constructed by it on
the Demised Premises, and before commencing such improvements, the Lessee shall
arrange for sufficient financing or otherwise ensure the availability of funds
to pay for such work, and on completion thereof shall deliver copies of the
as-built plans therefor to Lessor.
ARTICLE XIII
Mortgages
13.1 PERMITTED MORTGAGES. Except as expressly permitted under this Article,
Lessor shall not suffer or permit its interest in the Demised Premises to be
subject to any mortgage or other lien. The mortgages expressly permitted under
this Article are called "Permitted Mortgages".
13.2 LESSOR'S MORTGAGE. Lessee acknowledges that the Demised Premises are
currently encumbered by the mortgage and related security documents described on
Exhibit "C" hereto (the "Existing Mortgage"). Lessor shall pay and perform, and
cause all other obligors thereunder to pay and perform, all of their obligations
under the Existing Mortgage and any other Permitted Mortgage (as well as any
other mortgage or security interest granted by Lessor, regardless of whether
permitted under this Lease) and the obligations secured thereby (other than
obligations which are the
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responsibility of Lessee pursuant to specific provisions of this Lease), and
shall indemnify and hold Lessee harmless from and against any and all claims,
losses and expenses incurred by or threatened against Lessee on account of
Lessor's failure to do so.
13.3 ADDITIONAL MORTGAGE. Lessor may grant additional mortgage liens on the
Demised Premises so long as (a) total mortgage indebtedness under the Existing
Mortgage and such additional mortgages does not exceed 75% of the value of the
Demised Premises, and (b) the holder of each such mortgage enters into a
"Non-disturbance Agreement" (hereafter defined), and any such additional
mortgage shall also be a Permitted Mortgage hereunder. Lessee agrees to
cooperate with the Lessor in executing a subordination and attornment agreement
and any other document reasonably required by the Lessor's lender so long as
such lender enters into a non-disturbance agreement in recordable form
("Non-disturbance Agreement"), satisfactory to Lessee in its reasonable
judgment, prohibiting such lender from disturbing, interfering with or
terminating Lessee's rights under this Lease in connection with the exercise of
its remedies under the mortgage, unless Lessee shall then be in default
hereunder past any notice, grace or cure period.
13.4 ESCROW PAYMENTS. So long as the holder of any Permitted Mortgage
requires Lessor to make monthly escrow payments for real estate taxes and/or
insurance premiums, then Lessee shall pay the same monthly to Lessor, for
payment to such lender (or directly to such lender if Lessee so elects), (a) the
monthly escrow payments required by such lender and (b) payment of any
deficiency when required by such lender, and upon doing so shall have satisfied
its obligation for payment of real estate taxes and/or such insurance premiums
as are escrowed, as applicable, under this Lease.
13.5 SUBORDINATION. This Lease is and shall be subordinate to any Permitted
Mortgage so long as the holder thereof has entered into a Non-disturbance
Agreement.
13.6 LESSEE'S MORTGAGES. Lessee shall not suffer or permit its interest in
the Demised Premises, the Club or the other rights assigned to Lessee pursuant
to this Lease or the other Closing Deliveries to be subject to any mortgage or
other lien.
ARTICLE XIV
Default
14.1 CROSS-DEFAULT. A "default" or "Default" by either party to this
Agreement means the failure of such party and, in the case of Lessor, of GICI,
Yacht Club or GIII (Lessor, GICI, Yacht Club and GIII are sometimes called
"Lessor Parties") to pay or perform any of its obligation under this Lease or
under any of the "Closing Deliveries" (defined in the Master Agreement) (such
failure to pay or perform is called a "breach"), and in each case, expiration of
any notice, grace or cure periods.
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14.2 BY LESSEE.
(a) NOTICE; CURE. If at any time the Lessee fails to make any payment
of any Rent on the day it is due and payable, or if the Lessee breaches any
other covenant under this Lease, the Lessor shall give written notice
thereof to Lessee, but Lessor shall not be entitled to declare this Lease
in default unless, in the case of any Rent payable in monthly installments,
the payment is not paid within 5 days after its due date (such 5-day period
is called a "grace period") and continues for ten (10) days after Lessee
receives Lessor's notice that such payment was not made within the grace
period, and, in the case of any other breach, the breach continues for
thirty (30) days after Lessee receives Lessor's notice to Lessee. In no
event, however, shall Lessor be obligated to provide more than one notice
of an overdue monthly installment of Rent in any one Lease Year, and after
Lessee has received one such notice in any Lease Year, then, for the
remainder of that Lease Year, Lessee shall be afforded the grace period
only with respect to such monthly installments. However, nothing contained
herein shall be construed as precluding the Lessor from having any other
remedy that may be necessary to preserve its right and its interest in the
Demised Premises and this Lease, even before expiration of the grace or
notice periods provided for in this Section, if under the then existing
circumstances, the allowance of the grace or the notice period would
prejudice or endanger the Lessor's rights, estate and interest in this
Lease or the Demised Premises.
(b) REMEDIES. Upon any breach by Lessee and expiration of all
applicable notice, grace and cure periods, the Lessor may declare the Lease
term ended. In that event, the Lessor may re-enter upon any part of the
Demised Premises, either with or without process of law, the Lessee waiving
any demand for possession of the Demised Premises. The Lessor shall also
have all other remedies provided by law and/or equity, this instrument and
the other Closing Deliveries, including, without limitation, acceleration
of Rent. Immediately upon termination of the term, at the Lessor's election
or in any other way, the Lessee shall peaceably surrender and deliver up
the Demised Premises to the Lessor, or its agent or attorney. If the
Lessee, or its agent, attorney, or tenants, holds the Demised Premises, or
any part thereof, one day after the date for their surrender, according to
the terms of this Lease, the Lessee shall be deemed guilty of forcible
detainer of the Demised Premises and shall be subject to eviction or
removal, forcibly or otherwise, with or without process of law.
(c) RENTS; RECEIVER. Subject to the rights of the holder of any first
mortgage to which this Lease is or is made subordinate, the Lessee pledges
with, and assigns to, the Lessor as security for Lessee's obligations under
this Lease all rents, issues, and profits that might otherwise accrue to
the Lessee for the use, enjoyment, and operation of the Demised Premises.
In connection with such pledging of the
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rents, the Lessee covenants and agrees with the Lessor that if the Lessor,
upon the Lessee's default, elects to file suit to enforce the Lease and
protect its rights, the Lessor may, as ancillary to such suit, apply to any
court of competent jurisdiction for the appointment of a receiver of all
and singular the Demised Premises. Nothing contained in this Section shall
be construed as empowering the Lessor to collect or receive rents accruing
from the Demised Premises, unless and until the Lessee is in default.
14.3 BY LESSOR.
(a) In the event of a breach by the Lessor Parties, the Lessee shall
give written notice to the Lessor, but Lessee shall not be entitled to
declare this Lease in default unless, in the case of any failure to make a
payment of money, such amount is not paid within ten (10) days after the
Lessor receives Lessee's notice that such payment is due, and in the case
of any other violation, the violation continues for thirty (30) days after
Lessor receives Lessee's notice. However, nothing contained herein shall be
construed as precluding the Lessee from having any other remedy that may be
necessary to preserve its right and its interest in the Demised Premises,
the Club, and this Lease, even before expiration of the notice period
provided in this Section, if under the then existing circumstances, the
allowance of the notice period would prejudice or endanger the Lessee's
rights, estate and interest in this Lease, the Club, or the Demised
Premises.
(b) REMEDIES. Upon any default by Lessor and expiration of all
applicable notice and cure periods, the Lessee may terminate this Lease,
and except as may be specifically provided otherwise pursuant to any
liquidated damages provision in the Master Agreement or any other Closing
Deliveries, shall also have all other remedies provided by law and/or
equity, this instrument and the other Closing Deliveries.
14.4 DEFAULT INTEREST. All arrearages in the payment of Rent and other sums
payable hereunder by one party to the other shall bear interest from the
termination of any grace period provided hereunder, payable at the rate (the
"Default Rate") equal to the "prime rate" as in effect from time to time as
reported in the Wall Street Journal, plus six percent (6%) per annum until paid.
14.5 CUMULATIVE REMEDIES. During the continuance of the Lease, each party
shall have all rights and remedies which this Lease, the other Closing
Deliveries and the laws of the State of Florida assure to it. Except as may be
specifically provided otherwise pursuant to any liquidated damages provision in
the Master Agreement or any other Closing Deliveries, all rights and remedies
accruing to the Lessor shall be cumulative) that is, the Lessor may pursue all
of such rights and remedies, in whatever
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order it desires and the law permits without being compelled to resort to any
one remedy in advance of any other.
ARTICLE XV
Additional Covenants of Lessee
15.1 REPAIR OBLIGATIONS. During the term of this Lease the Lessee shall
keep in good state of repair and in first class condition all buildings and FF&E
and shall not suffer or permit any waste, or neglect of the Demised Premises,
provided, however, that Lessee shall be permitted to replace any or all of the
FF&E with items of equal or better value, and, provided, further, that Lessee
shall be permitted to make Qualified Capital Improvements.
15.2 USE. Lessee shall use the Demised Premises only as a luxury hotel and
resort and related ancillary uses and businesses as permitted under the
instruments listed on Exhibit "C" hereto, and in connection therewith, shall use
the words "Grove Isle" as or as part of the name of its hotel and resort
operations at the Demised Premises in accordance with the license granted
pursuant to Section 15.6 below. Lessee shall comply with all applicable Legal
Requirements with respect to its operation of the Demised Premises, provided,
however, that nothing herein or in any other provision of this Lease shall
obligate Lessee to correct or modify any aspect of the physical condition of the
Demised Premises which existed on the Commencement Date.
15.3 REPLACEMENT RESERVE. Lessee shall establish, as a segregated bank
account (the "Replacement Reserve"), a reserve for the replacement and repair of
the FF&E and shall deposit in the Replacement Reserve during each Lease Year not
less than 3% of the Operating Revenue (computed without regard to Club Revenue)
for that Lease Year. Lessee shall use the funds held in the Replacement Reserve
only for repair and replacement of the FF&E. Any funds held in the Replacement
Reserve on termination of this Lease shall be transferred to Lessor, unless this
Lease is terminated on account of any breach or default of Lessor, in which
event the Replacement Reserve shall remain the property of the Lessee.
15.4 PRESERVATION OF RIGHTS. In the exercise of its rights under this Lease
and the other "Closing Deliveries" (referred to in the Master Agreement), the
Lessee shall not engage in any conduct which would invalidate or result in
forfeiture or suspension of the alcoholic beverage license or the other material
permits, licenses or governmental approvals assigned to Lessee pursuant to the
Master Agreement.
15.5 SPA. The parties have entered into a separate letter agreement
pursuant to which Lessor may hereafter construct and operate a spa on a portion
of the Demised Premises. If and to the extent Lessor does elect to construct
such spa in accordance with such letter, then in the absence of any superseding
written agreement between Lessor and Lessee, such spa (the "Spa") and the
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land on which it is located shall not be part of the Demised Premises, and
Lessor and its employees, agents, contractors and lawful users of the Spa shall
have and enjoy a non-exclusive right, for the term of this Lease, (a) to use and
enjoy all driveways, walkways, parking facilities, tennis courts, restaurant and
open spaces now or hereafter located at the Demised Premises to the extent
necessary or appropriate for the construction of Spa and/or for their use and
enjoyment of the Spa, as applicable, and (b) in the case of Lessor, to erect,
maintain and repair directional signage for the Spa at the Demised Premises so
long as such signs conform to all applicable Legal Requirements, and are in the
same locations as, and are similar in size and design to, existing signage at
the Demised Premises, subject, however, in all cases to the reasonable
restrictions imposed by Lessee upon all users of such facilities, and Lessee's
right to relocate, remove, alter or demolish such facilities from time to time
to the extent not prohibited under this Lease. Lessor shall indemnify and hold
Lessee harmless from and against any and all loss, claim or damage which may be
incurred by or threatened against Lessee as a result of, or in connection with,
the exercise of its right to maintain and repair its signage hereunder or any
negligence or wrongful conduct of Lessor or its employees, agents, Spa invitees
and licensees on or with respect to the Demised Premises and agrees to maintain
and keep in effect at all times during the term of this Lease, liability
insurance policies relating to the Demised Premises in an amount not less than
$5,000,000.
15.6 LOANED SCULPTURE. The parties acknowledge that the objects scheduled
on Exhibit "E" hereto (the "Loaned Property"), are the property of the persons
indicated on Exhibit "E", who have loaned it to Lessor under unwritten
agreements requiring use only at the Demised Premises and at no other location,
and requiring that such objects be returned to the responsible owners listed on
Exhibit "E", on request. Within 60 days after notice by either party hereto to
the other, Lessor will, at Lessor's sole expense, remove such objects from the
Demised Premises. Notwithstanding anything herein to the contrary, Lessee shall
maintain insurance on the Loaned Property so long as it remains on the Demised
Premises, but except to the extent covered by the proceeds of insurance received
by Lessee, Lessee shall have no responsibility for the Loaned Property, and
shall not be required to maintain, secure or repair the Loaned Property, or to
replace the same as part of any Restoration or otherwise, and Lessor shall
indemnify and hold Lessee harmless from and against any and all loss, cost,
expense and damage, incurred or suffered by, or threatened against, Lessee, on
account of personal injury or property damage caused by the existence of the
Loaned Property at the Demised Premises, other than such loss, cost, expense or
damage arising from the gross negligence or willful misconduct of Lessee.
15.7 MARINA. Pursuant to the Sovereignty Lease n defined below, Lessor and
Grove Isle Yacht Club Associates, a Florida general partnership ("Yacht Club")
(Lessor and Yacht Club are sometimes together called "Marina Parties") together
own a leasehold estate in certain submerged land in Biscayne Bay,
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adjacent to the Demised Premises, more particularly described in that certain
Sovereignty Submerged Land Lease from the Board of Trustees of the Internal
Improvement Trust Fund of the State of Florida to the Marina Parties recorded in
Official Records Book 16401, Page 609, Public Records of Dade County, Florida
(the "Sovereignty Lease", which term includes all renewals thereof). In order to
provide assurances to each other with respect to the certain operations on the
Demised Premises and the Marina Property, the parties agree that, for the term
of this Lease:
(a) The Marina Parties shall comply with all terms and conditions of
the Sovereignty Lease and use their best efforts to keep the Sovereignty
Lease and their rights thereunder in full force and effect. The Marina
Parties shall apply for renewals of the Sovereignty Lease in sufficient
time to enable renewal not later than the end of the term stated therein,
and use its best efforts to obtain such renewal. Lessee agrees on request
of the Marina Parties to execute such consents and joinders which may be
required by the lessor under the Sovereignty Lease in order to obtain such
renewal but Lessee shall not be required to subject itself or the Demised
Premises to any liability (except, in the case of the Demised Premises,
such liability to which they are presently subject pursuant to the
Sovereignty Lease). The Marina Parties shall provide Lessee with copies of
such application for renewal simultaneously with submission thereof to the
lessor under the Sovereignty Lease. If the Marina Parties fail to do so
within the time provided herein, the Marina Parties hereby make, appoint
and constitute Lessee's president to do so in the name and on behalf of the
Marina Parties, it being understood and agreed that such power is a power
coupled with an interest and cannot be revoked. Nothing herein shall
obligate Lessee to exercise the power of attorney granted hereunder.
(b) The Marina Parties shall operate a marina on the Marina Property
in accordance with the Sovereignty Lease and as the same is presently
operated. Nothing herein shall be deemed to impose any obligations on the
Marina Parties with respect to boatslips sold to third parties, however,
the Marina Parties shall at all times ensure that a minimum of three (3)
boatslips are maintained and are made available for transient users of any
hotel and/or restaurant facilities located on the Demised Premises and
shall afford the users of such spaces and their agents, contractors and
invitees, access over and across the driveways, walkways, pier, docks and
ramps located on the Marina Property between such spaces and the hotel,
restaurant and other facilities located on the Demised Premises, subject to
reasonable restrictions imposed by the marina Parties upon all users of
such facilities Temporary dockage at such boatslips shall be free of charge
but the Marina Parties shall have the right to charge and collect its
normal dockage rates for dockage for overnight or longer.
(c) The Lessee shall have the right to place and maintain directional
signage on the Marina Property in order
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to direct users to its facilities on the Demised Premises. The location,
nature and appearance of such signage shall be mutually agreed to by the
parties, but such agreement shall not be unreasonably withheld.
(d) The Lessee shall afford the Marina Parties and their agents,
contractors and invitees, the non-exclusive right to use and enjoy all
driveways, walkways, parking facilities and open spaces now or hereafter
located at the Demised Premises to the extent necessary or appropriate for
their use and enjoyment of the marina operated on the Marina Property by
the Marina Parties, subject, however, to reasonable restrictions imposed by
Lessee upon all users of such facilities and Lessee's right to relocate,
remove, alter or demolish such facilities from time to time to the extent
permitted under the Lease. In addition, subject to normal membership
criteria, rules and regulations and screening procedures for the Club,
Lessee shall permit owners of boatslips at the Marina Property to become
members of the Club.
(e) The Marina Parties and the Lessee (in such capacity, each is an
"indemnifying party") shall indemnify and hold the other (in such capacity,
an "indemnified party") harmless from and against any and all loss, claim
or damage which may be incurred by or threatened against the indemnified
party as a result of any negligence or wrongful conduct of the indemnifying
party or its employees, agents, invitees and licensees on or with respect
to the property upon which the indemnifying party is granted rights under
subsections (b), (c) or (d) above.
(f) So long as the existing retail space at the Demised Premises is
part of the Demised Premises, and thereafter so long as Lessee has the
right to do so, Lessee shall lease to Yacht Club or its designee at least
400 square feet of such retail space, facing Biscayne Bay and the marina
parking lot, for use as a dockmaster's office and a ships' store, at market
rental rates.
(g) From time to time upon the request of any party, the other shall
make, execute and deliver, or cause to be made, executed and delivered to
the requesting party any and all such further instruments of lease,
transfer, conveyance and further assurance, easements, certificates,
affidavits and other documents as the requesting party may consider
necessary in order to effectuate, complete or perfect the transactions
contemplated under this Section 15.7.
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15.9 STOCK. By its joinder hereafter, Grove Isle Investments, Inc. ("GIII")
hereby grants to Lessee an option (herein, the "Option") to purchase from GIII
60 shares of Class A common stock (the "Stock") prior to termination of the
Lease for one (1) United States Dollar at any time from or after such date as
Lessee shall have instituted an action in a court of competent jurisdiction
against any of the Lessor Parties alleging the existence of an uncured default,
so long as such action is pending and Lessee shall have posted a surety bond or
other security for loss in the event that Lessee is not the prevailing party in
such action. Lessee shall exercise the Option by giving written notice thereof
to GIII not less than 30 days prior to the date on which Lessee intends to
purchase the Stock (the "Purchase Date"). On the Purchase Date, GIII shall
execute and deliver to Lessee the certificates representing the Stock, as well
as sufficient stock powers and any and all other instruments which may be
necessary to effectuate absolute transfer of the Stock to Lessee. In connection
herewith:
(a) GIII represents and warrants to Lessee that the Stock constitutes
all of the authorized, issued and/or outstanding shares of GICI, and is
free and clear
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of any and all options, agreements, security interests, liens or
encumbrances whatsoever. GIII further agrees that at no time between the
date hereof and the Purchase Date shall the Stock be sold, transferred,
pledged or assigned, nor shall the Stock be subject to any such agreement,
option, lien, encumbrance or security interest whatsoever.
(b) GICI shall:
(i) execute no document or instrument, or take any other action
with respect to the Club other than as requested by Lessee in writing.
(ii) engage in no business other than its performance of this
Section 15.9.
(iii) not sell, transfer, liquidate or dispose of any of its
rights, assets or other properties other than as contemplated under
this Lease, provided, however, that GICI shall be permitted to
transfer or dispose of any rights which it may have with respect to
its net operating loss carryforward as reported on its United States
income tax returns.
(iv) neither authorize or issue any additional shares of stock,
nor, without the written consent of Lessee, modify its Articles of
Incorporation or bylaws.
15.10 LICENSE. Lessor and XXXX xxxxx to Lessee an exclusive license to use,
during the term of this Lease, solely for the purposes set forth below in this
section, any and all trademarks, trade names and fictitious names used or
heretofore used by either of them in connection with the Club, the Demised
Premises, or any part thereof, including without limitation, the names "Grove
Isle Club", "Grove Isle Hotel", "Grove Isle Resort", "Little Grove Isle" or any
combination or derivation thereof (collectively the "Name"), and the trademarks
registered with the Florida Department of State, Trademark Registration Section,
Registration numbers T941,324, T941,325, T941,326 and T941,327 (collectively,
the "Marks") provided, however, that the license granted hereunder shall be
utilized only in connection with the use, operation and management'
advertisement and promotion of the Demised Premises and the Club and not for any
other properties, provided, however, that Lessee shall also be authorized to use
the Names and/or the Marks for and in connection with the corporate and
marketing affairs of Lessee and Lessee's Affiliates. Lessee agrees that the
quality of services provided by it with respect to the Marks and the Names shall
conform to the operating standards set forth in Section 15.2 of this Lease.
Notwithstanding that the license granted pursuant to this provision is
exclusive, the Lessor Parties shall have the non-exclusive right (together with
Lessee) to use the Names and the Marks in connection with their use and
operation of the Spa and the
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marina referred to above, and the Lessor Parties shall also have and retain the
non-exclusive right (together with Lessee) to use the promotional video of the
Demised Premises and such marina. The license granted hereunder shall remain in
full force and effect for the term of this Lease, is not assignable or otherwise
transferrable, directly or indirectly, except in conjunction with assignment of
this Lease and/or the Club to the extent permitted under this Lease, and shall
automatically terminate on termination of the Lease.
ARTICLE XVI
Quiet Enjoyment
Subject to the terms hereof, so long as the Lessee keeps and performs all
of its covenants and conditions under this Lease, it shall have quiet,
undisturbed, and continued possession of the Demised Premises, free from all
claims against the Lessor and all persons claiming under, by, or through the
Lessor.
ARTICLE XVII
Right of Entry
The Lessor and its agents may enter upon the Demised Premises at all
reasonable times to examine their condition and use or to exhibit the same to
its lenders, investors and prospective purchasers, so long as that right is
exercised in a manner that does not unreasonably interfere with the Lessee in
the conduct of its business on the Demised Premises. If the Demised Premises are
damaged by fire, windstorm, or other casualty which causes them to be exposed to
the elements, the Lessor may enter upon them to make emergency repairs if the
Lessee fails to do so. However, if it does so, the act or acts shall not be
deemed to excuse the Lessee from its obligation to keep the Demised Premises in
repair, and the Lessee shall, upon the Lessor's demand, immediately reimburse it
for the cost of the emergency repairs.
ARTICLE XVIII
Lessor's Obligations
The parties acknowledge that the Lessor Parties have certain financial
obligations to Lessee under the Master Agreement, this Lease and the Closing
Deliveries and the other agreements and instruments referred to in the Master
Agreement. To the extent that any such obligation is a determinable sum, Lessee
shall have the right to set off against Lessee's obligations to Lessor under
this Lease, the amount of any such obligation which is not paid within 45 days
after Lessee's notice that such payment is due and owing.
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ARTICLE XIX
Miscellaneous
19.1 GOVERNING LAW. All of the rights and remedies of the parties shall be
governed by the provisions of this instrument and by the laws of the State of
Florida.
19.2 FORCE MAJEURE. If the Lessor or Lessee is delayed, hindered, or
prevented from performing any act required hereunder (other than the payment of
money) by reason of strikes, lockouts, labor troubles, inability to procure
materials, failure of power, restrictive government laws or regulations, riots,
insurrection, the act, failure to act or default of the. other party, war, or
other reason beyond its control, then performance of the act shall be excused
for the period of the delay. In that event, the period for the performance of
the act shall be extended for a period equivalent to the period of the delay.
19.3 ESTOPPEL CERTIFICATES. Either party shall, without charge, at any time
and from time to time hereafter (but not more frequently than twice during any
one Lease Year), within twenty (20) days after the other's written request to
the other, certify by instrument duly executed and acknowledged to any mortgages
or purchaser or proposed mortgagee or proposed purchaser, or any other person,
firm, or corporation specified in the request as to:
(a) Whether this Lease has been supplemented or amended, and, if so,
the substance and manner of the supplement or amendment;
(b) The validity and force and effect of this Lease, in accordance
with its tenor as then constituted)
(c) The existence of any default under this Lease;
(d) The existence of all offsets, counterclaims, or defenses thereto
on the part of the other party;
(e) The Commencement Date and Termination Date; and
(f) All other matters that may reasonably be so requested.
Any such certificate may be relied upon by the party who requested it and
any other person, firm, or corporation to whom it may be exhibited or delivered,
and the contents of the certificate shall be binding on the party executing it.
Failure within the 20-day period to give a written reply shall constitute a
representation, which any person may rely upon as being true and correct, that
the Lease is in good standing.
19.4 DUPLICATES; RECORDATION. Either party shall, at any time, at the
other's request, promptly execute duplicate originals of an instrument, in
recordable form, which shall constitute a short form of this Lease. This will
set forth a description of the
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demised premises, the term of this Lease, and any other portion thereof, except
for the rental provisions, requested by either party.
19.5 NO RECOURSE. Notwithstanding anything to the contrary, the parties
hereto shall look solely to the interest of the other in the Demised Premises,
this Lease, the Club, and the Retained Club Rights, as applicable, for the
satisfaction of any remedy it may have hereunder or in connection herewith and
shall not look to any other assets of such other party or of any other person,
firm or corporation. No personal liability shall attach to any of present or
future shareholders, officers, or directors of any party or its partners, for
any obligation hereunder or in connection herewith. Nothing in this section
shall be construed to diminish or impair the effect of Article XVIII hereof, or
of any separate guaranty or promissory note executed by any third party in
connection with this Lease.
19.6 CONSENT NOT TO BE UNREASONABLY WITHHELD. Except to the extent, if any,
specifically provided otherwise herein, the Lessor Parties shall not
unreasonably withhold their consent, permission, or approval for any act which
may be required or desired by the Lessee under the provisions of this Lease.
Such consent, permission, or approval shall be deemed to have been granted if,
within forty-five (45) days after any Lessor Party receives the request, fails
to notify the Lessee of its express disapproval and the reasons therefor.
19.7 COVENANTS RUNNING WITH LAND; BINDING EFFECT. All covenants,
conditions, and obligations contained herein or implied by law are covenants
running with the land for the term of this Lease, or such longer period as may
be specified herein, and shall attach and bind and inure to the benefit of the
Lessor and Lessee and their respective heirs, legal representatives, successors,
and assigns, except as otherwise provided herein.
19.8 NON-WAIVER. No waiver of a breach of any covenant in this Lease shall
be construed to be a waiver of any succeeding breach of the same covenant. No
delay or failure by either party to exercise any right under this Lease, and no
partial or single exercise of that right, shall constitute a waiver of that or
any other right, unless otherwise expressly provided herein.
19.9 RELATIONSHIP. The relationship between parties is that of landlord and
tenant only, and in no event shall the parties be deemed to be partners or joint
ventures.
19.10 WRITTEN MODIFICATIONS. No modification, release, discharge, or waiver
of any provision hereof shall be of any force, effect, or value unless signed in
writing by the party to be charged therewith, or its duly authorized agent or
attorney.
19.11 ENTIRE AGREEMENT. This instrument, together with the Master Agreement
and the other Closing Deliveries, contain the entire agreement between parties
as of this date with respect to
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the subject matter hereof. The execution hereof has not been induced by either
party by representations, promises, or understandings not expressed herein.
There are no collateral agreements, stipulations, promises, or undertakings
whatsoever upon the respective parties in any way touching the subject matter of
this instrument which are not expressly contained in it or such Master Agreement
or the other Closing Deliveries.
19.12 NOTICES. All notices and responses which are required or permitted
under this Lease shall be in writing, and shall be deemed complete only when
actually delivered to the recipient as follows or delivery at such address is
refused:
(a) If to any
Lessor Party: Grove Isle Associates, Ltd.
0000 Xxxxx Xxxxxxxx Xxxxx
Xxxxxxxxx
Xxxxx, XX 00000
Attention: Xxxxxxx Xxxxxx
With a copy to: Xxxx Xxxx, Esq.
Greenberg, Traurig, Hoffman,
Lipoff, Xxxxx & Xxxxxxx, P.A.
0000 Xxxxxxxx Xxxxxx
Xxxxx, XX 00000
(b) If to Lessee: Westgroup Grove Isle
Associates Ltd.
c/o Noble House Hotels & Resorts
00 Xxxxxxx Xxx, Xxxxx 000
Xxxxxxxx, XX 00000
Attn: Xx. Xxxxxxx X. Xxxxx
With a copy to: Xxxxxxx Xxxx, Esq.
00 Xxxxxxx Xxx
Xxxxx 000
Xxxxxxxx, XX 00000
Either party may change the place for giving notice by written notice in
the manner set forth in this Section.
19.13 JOINT LIABILITY. If the parties upon either side (Lessor and Lessee)
consist of more than one person, such persons shall be jointly and severally
liable on the covenants of this Lease.
19.14 LIABILITY CONTINUED. All references to the Lessor and Lessee mean the
persons who, from time to time, occupy the positions, respectively, of Lessor
and Lessee. However, this shall not be construed as relieving a person of any
liability incurred by it by reason of or in connection with it having been
Lessor or Lessee at one time, unless such release is provided for under other
provision of this Lease.
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19.15 NO THIRD PARTY BENEFITS. This Lease is made for the sole benefit of
the parties hereto, and no third party shall be a beneficiary hereof or have any
rights hereunder.
19.16 ATTORNEY'S FEES. In the event of any litigation, action, suit or
proceeding between any parties to this Lease pertaining to the construction or
enforcement of this Lease, the prevailing party shall be entitled to payment by
the other of such prevailing parties reasonable attorney's fees and expenses in
connection with such litigation, actions, suit or proceeding.
19.17 BROKER. The parties represent that there are no brokers involved in
this transaction and that no brokerage commissions are payable to any third
party.
19.18 HEADINGS. Headings in this Lease are for convenience and reference
only and shall not be used to interpret or construe its provisions.
19.19 TIME OF ESSENCE. Time is expressly declared to be of the essence of
this Lease and of each provision hereof.
IN WITNESS WHEREOF, the Lessor and the Lessee have hereunto set their hands
and seals as of the day and year above written.
LESSOR:
GROVE ISLE ASSOCIATES, LTD.,
a Florida limited partnership,
by COURTLAND INVESTMENTS, INC.,
a Delaware corporation,
its sole general partner
/s/ Xxxxxxxx Xxxxxxxxx By: /s/ Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
Xxxxxx Xxxxx Title:
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxx Xxxxx
(SEAL)
LESSEE:
WESTGROUP GROVE ISLE ASSOCIATES LTD.,
a Florida limited partnership, by
WESTGROUP PARTNER, INC.,
a California corporation,
its sole general partner
/s/ Xxxxxxxx Xxxxxxxxx By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------- ---------------------------------
Xxxxxxx X. Xxxxx, President
Print Witness Name: Xxxxxxxx Xxxxxxxxx
--------------------------------------
/s/ Xxxxxx Xxxxx
--------------------------------------
Print Witness Name: Xxxxxx Xxxxx
(SEAL)
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ATTACHMENTS:
EXHIBIT "A" -- Legal Description
EXHIBIT "B" -- Existing Lease
EXHIBIT "C" -- Title Exceptions
EXHIBIT "D" -- Approved Capital Improvements
EXHIBIT "E" -- Loaned Property
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JOINDER
The undersigned join herein in order to acknowledge and agree to the
provisions of this Lease.
GROVE ISLE CLUB, INC.,
a Florida corporation
/s/ Xxxxxxxx Xxxxxxxxx By: /s/ Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
/s/ Xxxxxx Xxxxx Title: Chairman
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxx Xxxxx
(SEAL)
GROVE ISLE YACHT CLUB ASSOCIATES,
a Florida general partnership
By: COURTLAND INVESTMENTS, INC.,
a Delaware corporation, its
general partner
/s/ Xxxxxxxx Xxxxxxxxx By: /s/ Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
/s/ Xxxxxx Xxxxx Title: Chairman
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxx Xxxxx
(SEAL)
By: GROVE ISLE INVESTMENTS, INC.,
a Florida corporation, its
general partner
/s/ Xxxxxxxx Xxxxxxxxx By: /s/ Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
/s/ Xxxxxx Xxxxx Title: Chairman
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxx Xxxxx
(SEAL)
GROVE ISLE INVESTMENTS, INC.,
a Florida corporation
/s/ Xxxxxxxx Xxxxxxxxx By: /s/ Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
-------------------------------------- ---------------------------------
/s/ Xxxxxx Xxxxx Title: Chairman
-------------------------------------- ---------------------------------
Print Witness Name: Xxxxxx Xxxxx
(SEAL)
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CONSENT
The undersigned joins herein in order to consent to the foregoing Amended
and Restated Lease Agreement and to attorn to the rights of Lessee hereunder.
GROVE ISLE MARINA, INC.,
a Florida corporation
By: /s/ Xxxxxxx Xxxxxx
---------------------------------
Name: Xxxxxxx Xxxxxx
---------------------------------
Title: Chairman
---------------------------------
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