FIRST AMENDMENT TO NET LEASE AGREEMENT
THIS AMENDMENT TO NET LEASE AGREEMENT, made and entered into
effective as of the 20th day of June, 2005, by and between AEI
Income & Growth Fund 25 LLC ("Fund 25"), whose corporate managing
member is AEI Fund Management XXI, Inc., whose address is 1300
Xxxxx Fargo Place, 00 Xxxx Xxxxxxx Xxxxxx, Xx. Xxxx, Xxxxxxxxx
00000 ("Lessor")(fax #000 000 0000), and Kona Restaurant Group,
Inc., a Delaware corporation, whose address is 0000 Xxxxxx
Xxxxxxxxx, Xxxxx 000, Xxxxxx, XX 00000 ("Lessee") (fax # 512 691
8201);
WITNESSETH:
WHEREAS, Lessor is the fee owner of a certain parcel of real
property and improvements located at Pueblo, Colorado, and
legally described in Exhibit "A", which is attached hereto and
incorporated herein by reference; and
WHEREAS, Lessee has constructed the building and
improvements (together the "Building") on the real property
described in Exhibit "A", which Building is described in the
plans and specifications heretofore submitted to Lessor; and
WHEREAS, Lessee and Lessor have entered into that certain
Net Lease Agreement dated November 2, 2004 (the "Lease")
providing for the lease of said real property and Building (said
real property and Building hereinafter referred to as the "Leased
Premises"), from Lessor upon the terms and conditions therein
provided in the Lease;
NOW, THEREFORE, in consideration of the Rents, terms,
covenants, conditions, and agreements hereinafter described to be
paid, kept, and performed by Lessee, including the completion of
the Building and other improvements constituting the Leased
Premises, Lessee and Lessor do hereby agree to amend the Lease as
follows:
1. Article 2(A) and (B) of the Lease shall henceforth read as
follows:
ARTICLE 2. TERM
(A) The term of this Lease ("Term") shall be the period
commencing November 2, 2004, ("Occupancy Date") through the
contemplated initial term hereof ending on June 30, 2022.
(B) The first full Lease Year shall commence on the date of
this First Amendment and continue through June 30, 2006. Each
Lease Year after the first Lease Year shall be a successive
period of twelve (12) calendar months.
2. Article 4(A) of the Lease shall henceforth read as follows:
ARTICLE 4. RENT PAYMENTS
(A) Annual Rent Payable for the first and second Lease
Year: Lessee shall pay to Lessor Fund 25 an annual
Base Rent of $182,663.10, which amount shall be payable
in advance on the first day of each month in equal
monthly installments of $15,221.93 to Lessor Fund 25.
If the first day of the Lease Term is not the first day
of a calendar month, then the monthly Rent payable for
that partial month shall be a prorated portion of the
equal monthly installment of Base Rent.
3. Article 35 is hereby deleted in its entirety; Lessor and
Lessee agree that the referenced Development Financing Agreement
is terminated in accordance with its terms.
4. Lessee has accepted delivery of the Leased Premises and has
entered into occupancy thereof;
5. Lessee has fully inspected the Premises and found the same
to be as required by the Lease, in good order and repair, and all
conditions under the Lease to be performed by the Lessor have
been satisfied;
6. As of this date, the Lessor is not in default under any of
the terms, conditions, provisions or agreements of the Lease and
the undersigned has no offsets, claims or defenses against the
Lessor with respect to the Lease.
7. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which shall
constitute one and the same instrument.
8. Exhibit B to the Lease shall be as attached hereto,
reflecting personalty on the Leased Premises owned by
Lessor. All other terms and conditions of the Lease shall
remain in full force and effect.
IN WITNESS WHEREOF, Lessor and Lessee have respectively signed
and sealed this Lease as of the day and year first above written.
LESSEE: Kona Restaurant Group, Inc.,
By:/s/ Xxxxx Xxxxxxx
Its: Secretary
LESSOR: AEI INCOME & GROWTH FUND 25 LLC
By: AEI FUND MANAGEMENT XXI, INC., a Minnesota corporation
By:/s/ Xxxxxx X Xxxxxxx
Xxxxxx X. Xxxxxxx, President
EXHIBIT "A'
Property
Parcel 1:
Parcel B, Rearrangement of Property Boundaries, according to the
recorded plat thereof, filed for record August 31, 2004 at
Reception No. 1582518 in the records of the Pueblo County Clerk
and Recorder being more particularly described as follows:
All of Lot 4 and the Southerly ten feet of Xxx 0, Xxxxxx Xxxxxxxx
Filing No. 1, according to the recorded plat thereof, filed for
record December 18, 2003 at Reception No. 1542506, in the records
of the Pueblo County Clerk and Recorder being more particularly
described as follows:
COMMENCING at the NW corner of said Lot 5; thence S 14 40' 02" E
(bearings based on the South line of Xxx 0, Xxxxxx Xxxxxxxx
Filing No. 4, monumented at each end with a No. 4 rebar with a
yellow plastic cap X.X.X. Xx. 00000, to bear S 75 19' 58" W, as
established on the recorded plat thereof filed for record
December 18, 2003 at Reception NO. 1542506, in the records of the
Pueblo County Clerk and Recorder) along the Westerly line of said
Lot 5, a distance of 239.00 feet to the true POINT OF BEGINNING;
thence N 75 19' 58" E, a distance of 350.00 feet to a point on
the East line of said Lot 5; thence S 14 40' 02" E, along the
East line of said Lots 5 and 4, a distance 262.00 feet to the SE
corner of said Lot 4; thence S 75 19'
58" W, along the South line of said Lot 4, a distance of 350.00
feet, to the SW corner of said Lot 4; thence N 14 40' 02" W,
along the West line of said Lots 4 and 5, a distance of 262.00
feet to the POINT OF BEGINNING.
Parcel 2:
Non-exclusive easements as created in Operation and Easement
Agreement between Kohl's Department Stores, Inc. and Orix MK
Pueblo Crossing Venture recorded December 22, 1003 at Reception
No. 1542930, as supplemented by the Supplemental Agreement to
Operating and Easement Agreement recorded June 17, 2004 at
Reception No. 1570926, First Amendment to Operation and Easement
Agreement recorded August 25, 2004 at Reception No. 1581803.
