Exhibit 10.2
LEASE EXTENSION AND MODIFICATION AGREEMENT
Agreement made this 29 day of February, 2000 by and between Xxxxxx
Organization Ltd. d/b/a Hadson Realty ["Landlord"], 0000 Xxxxxxxx, Xxxxxx Xxxxx,
Xxx Xxxx, X.X., Xxx Xxxx Film Works, Inc., 000 Xxxxxxxx, Xxxxxx # 0 xxx 0, Xxx
Xxxx, Xxx Xxxx 00000 ["Tenant"], Xxxxxx Xxxxx, Xxxxxxx Drive, Coral Springs,
Florida, ["Guarantor"], Xxxxxxx Xxxxx, 000 Xxxxxx Xxxx, Xxxxxx, Xxx Xxxxxx 00000
["First Guarantor"] and Xxxxxxx Xxxxx, 00 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000 ["Second Guarantor"] modifying and extending the Lease and Guaranty dated
May 16, 1995 for Premises: Stores #1 and 2 and Basement # 1 (directly underneath
Store #1) in the building located at 000 Xxxxxxxx, Xxx Xxxx, XX ["Lease"]
between Landlord, Tenant and Guarantor.
For the sum of One Dollar ($1.00) and other good and valuable
consideration, including but not limited to the Landlord's consent to the
extension and modification of the Lease, the receipt and sufficiency of which
are hereby acknowledged, Landlord, Xxxxxx Xxxxx, First Guarantor and Second
Guarantor hereby agree that the Lease and Guaranty (a true copy of which is
annexed hereto as Exhibit "A" and its contents incorporated herein by reference)
is extended and modified as follows:
1. The term of the Lease shall be extended for a period of six years. The
Lease extension term shall commence March 1, 2000 and end February 28, 2006.
2. The base rent has changed. Effective March 1, 2000 the base rent,
payment of which is due in advance, shall be $25,000.00 per month ($300,000.00
annually). Thereafter, on each annual anniversary of the lease extension (March
1) the base rent shall increase by $1,200.00 per month ($14,400.00 annually) so
that
a. the base rent for the period commencing March 1, 2001 and ending
February 28, 2002 is $26,200.00 per month ($314,400.00 annually);
b. the base rent for the period commencing March 1, 2002 and ending
February 28, 2003 is $27,400.00 per month ($328,800.00 annually);
c. the base rent for the period commencing March 1, 2003 and ending
February 29, 2004 is $28,600.00 per month ($343,200.00 annually);
d. the base rent for the period commencing March 1, 2004 and ending
February 28, 2005 is $29,800.00 per month ($357,600.00 annually);
e. the base rent for the period commencing March 1, 2005 and ending
February 28, 2006 is $31,000.00 per month ($372,000.00 annually).
3. The Additional rent requirement is modified and increased. The real
estate tax escalation payment provision [Section 1) of the Additional Rent
Preamble] is modified to the following extent. The definition of "Tax Base Year"
is modified to mean the year July 1, 2000 to June 30, 2001. Section 1) is
modified so that Tenant is required to pay to Landlord as additional rent a sum
equal to one sixth (1/6) of the amount by which the Real Estate Taxes for the
Tax Year exceed the Tax Base Year.
4. Article 55 of the Lease (Guaranty of Rent) is modified. Guarantor
represents that he is no longer the President of the Tenant. Based on this
representation, Xxxxxx Xxxxx is released as Guarantor under the Lease. First
Guarantor [who represents that his Social Security Number is ###-##-####] and
Second Guarantor [who represents that his Social Security Number is ###-##-####]
agree that they shall be the Guarantors of the Tenants' obligations under the
Lease as modified and extended, jointly and severally, and that they are
substituted as Guarantors in the place and stead of Xxxxxx Xxxxx. First and
Second Guarantor shall be jointly and severally liable to guaranty the Tenant's
fulfillment of all of its obligations under the Lease under the same terms and
conditions contained in Article 55. of the Lease except that the portion of the
guaranty that provides that the guaranty is limited to $25,000.00 under certain
circumstances (paragraph 5 of Article 55. Of the Lease) is modified so that the
sum guaranteed under those particular circumstances is increased to $50,000.00.
Article 55. of the Lease is modified only as set forth herein and otherwise
remains in full force and effect. The terms of Article 55. of the Lease as
modified herein govern the Guarantees made by First and Second Guarantor by
execution of this document.
5. Article 16. of the lease is modified so as to insert a new first
sentence which states "Tenant and Landlord agree that tenant may only sell,
assign, transfer or underlet this Lease, the Premises or any portion thereof to
an individual or entity or business unless that individual, entity or business
agrees that the premises can only be used for the processing of film and related
activities and uses the premises only for such purposes." The balance of Article
16. remains unchanged and in full force and effect.
6. All terms of the Lease remain in full force and effect and are extended
and modified only as particularly set forth herein.
Dated: February , 2000
New York Film Works, Inc. New York Film Works, Inc. Guarantor
/s/ Xxxxxxx Xxxxx /s/ Xxxxxxx Xxxxx /s/ Xxxxxx Xxxxx
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By: Xxxxxxx Xxxxx, President By: Xxxxxxx Xxxxx, Secretary By: Xxxxxx Xxxxx
Landlord Xxxxxx Organization First Guarantor Second Guarantor
Ltd. d/b/a Hadson Realty
/s/ Xxxxxx Xxxxxxx /s/ Xxxxxxx Xxxxx /s/ Xxxxxxx Xxxxx
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By: Xxxxxx Xxxxxxx, Vice-President Xxxxxxx Xxxxx Xxxxxxx Xxxxx
