Business Lease

BUSINESS LEASE


The Landlord and the Tenant agree to lease the Rental Space for the Term and at the Rent stated, as follows:(The words Landlord and Tenant include all landlords and all tenants under this Lease.)


Landlord: J.R Tobacco Outlet, Inc. Tenant: Casa Blanca, Inc.
301 Route 10 East 301 Route 10 East
Whippany, New Jersey 07981 Whippany, New Jersey 07981


Rental Space: Liquor Store and Bar Area Comprising of 1,200 sq. ft. running along West Wall of Cigar Store Building


in the Building at: 301 Route 10 East, Whippany, New Jersey 07981


Date of Lease: March 1, 1996.


Term: Five (5) Years
Beginning: March 1, 1996.
Ending: February 28, 2001.


Security $: None.


Broker. The Landlord and the Tenant recognize: None.


as the Broker who brought about this Lease. The None shall pay the Broker's commission.


Liability Insurance. Minimum amounts: for each person injured $1,000,000, for any one accident $2,000,000, for property damage $500,000.


Municipal Real Estate Taxes $ N/A, Base Year 19 . Percent of Increase 15.0%


Use of Rental Space: For A Retail Liquor Store and An Upscale Cigar Bar Only.


Additional agreements: Owner Shall Restrict Spirit and Wine Consumption to the Bar Area Only.


Rent for the Term is $253,000.00


The Rent is payable in advance on the first day of each month, as follows:
For the Period March 1, 1996 through December 31, 1996: $2,950.00
For the Period January 1, 1997 through February 28, 2001: $4,666.66.


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Table of Contents


1. Possession and Use 16. No Alterations 2. Delay in Giving of Possession 17. Signs 3. No Assignment or Subletting 18. Access to Rental Space 4. Rent and Additional Rent 19. Fire and Other Casualty 5. Security 20. Eminent Domain 6. Liability Insurance 21. Subordination to Mortgage 7. Unavailability of Fire Insurance, Rate Increases 22. Tenant's Certificate 8. Water Damage 23. Violations, Eviction, Re-entry and Damages 9. Liability of Landlord and Tenant 24. Notices 10. Real Estate Taxes 25. No Waiver 11. Acceptance of Rental Space 26. Survival 12. Quite Enjoyment 27. End of Term 13. Utilities and Services 28. Binding 14. Tenant's Repairs, Maintenance and Compliance 29. Full Agreement 15. Landlord's Repairs and Maintenance


1. Possession and Use
The Landlord shall give possession of the Rental Space to the Tenant for the Term. The Tenant shall take possession of and use the Rental Space for the Purpose stated above. The Tenant may not use the Rental Space for any other purpose without the written consent of the Landlord. The Tenant shall not allow the Rental Space to be used for any unlawful or hazardous purpose. The Tenant is satisfied that the Rental Space is zoned for the Use stated. The Tenant shall obtain any necessary certificate of occupancy or other certificate permitting the Tenant to use the Rental Space for that Use.


The Tenant shall not use the Rental Space in any manner that results in (1) an increase in the rate of fire or liability insurance or (2) cancellation of any fire or liability insurance policy on the Rental Space. Then Tenant shall comply with all requirements of the insurance companies insuring the Rental Space. The Tenant shall not abandon the Rental Space during the Term of this Lease or permit it to become vacant for extended periods.


2. Delay in Giving of Possession
This paragraph applies if (a) the Landlord cannot give possession of the Rental Space to the Tenant on the beginning date and (b) the reason for the delay is not the Landlord's fault. The Landlord shall not be held liable for the delay. The Landlord shall then have 30 days in which to give possession. If possession is given within that time, the Tenant shall accept possession and pay the Rent from that date. The ending date of the Term shall not change. If possession is not given within that time this lease may be canceled by either party on notice to the other.


3. No Assignment or Subletting
The Tenant may not do any of the following without the Landlord's written consent: (a) assign this lease (if the Tenant is a corporation, the sale of a majority of its shares shall be treated as an assignment), (b) sublet all or any part of the Rental Space or (c) permit any other person or business to use the Rental Space.


4. Rent and Additional Rent
Tenant shall pay the Rent to the Landlord at the Landlord's address.


If the Tenant fails to comply with any agreement in this Lease, the Landlord may do so on behalf of the Tenant. The Landlord may charge the cost to comply, including reasonable attorney's fees, to the Tenant as "additional rent". The additional rant shall be due and payable as Rent with the next monthly Rent payment. Non-payment of additional rent shall give the Landlord the same rights against the Tenant as if the Tenant failed to pay the Rent.


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5. Security
The Tenant has given to the Landlord the Security stated above. The Security shall be held by the Landlord during the Term of this Lease. The Landlord may deduct from the Security any expenses incurred in connection with the Tenant's violation of any agreement in this Lease. For example, if the Tenant does not leave the Rental Space in good condition at the end of the Term, the Security may be used to put it in good condition. If the amount of damage exceeds the Security, the Tenant shall pay the additional amount to the Landlord on demand.


If the Landlord uses the Security or any part of it during the Term, the Tenant shall on demand pay the Landlord for the amount used. The amount of the Security is to remain constant throughout the Term. The Security is not to be used by the Tenant for the payment of Rent. The Landlord shall repay to the Tenant any balance remaining within a reasonable time after the end of the term. The Tenant shall not be entitled to interest on the Security.


If the Landlord's interest in the Rental Space is transferred, the Landlord shall turn over the Security to the new Landlord. The Landlord shall notify the Tenant of the name and address of the new Landlord. Notification must be given within 5 days after the transfer, by registered or certified mail. The Landlord shall then no longer be responsible to the Tenant for the repayment of the Security. The new Landlord shall be responsible to the Tenant for the return of the Security in accordance with the terms of this Lease.


6. Liability Insurance
The Tenant shall ob ...