LEASE AGREEMENT
Exhibit
10.2
This
Lease Agreement ("Lease
Agreement")
is
dated as of September 26, 2008, between SBKF Investments, Ltd., a corporation
formed pursuant to the laws of England, having an office at Xxxx 000 Xxxxxxxx
Xxxxx Xxxxxxxx Xxxxxx Xxxx, X0 0XX Xxxxxxxxx, XX ("Lessor")
and
B&D FOOD CORP., a corporation formed pursuant to the laws of the State of
Delaware and having an office for business located at 000 Xxxxxxx Xxxxxx,
Xxxxx
0000, Xxx Xxxx, XX 00000-0000 Xxxxxx Xxxxxx ("Lessee”)
1.
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Factory
Lease and Term.
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1.
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Lessor
hereby leases to Lessee and Lessee hereby hires and takes from
Lessor,
upon and subject to the covenants and conditions hereinafter contained,
the factory owned by BDFC BRASIL ALIMENTOS LTDA., a subsidiary
company wholly owned by the Lessor and formed pursuant to the laws
of
Brazil ("BDFC"),
including all real property, industrial equipment, manufacturing
facilities for the production of spray-dried instant coffee, roasted
coffees and cappuccino mixes ("Factory
Equipment"),
and BDFC's commercial brands/trade names, as more fully described
in
Annex
A,
and hereinafter collectively referred to as the "Leased
Property".
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2.
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The
Lessee will take possession of the Leased Property, on or before
September
26 2008, being hereinafter called "Commencement
Date".
The term of this Lease with respect to the Leased Property shall
be for a
period of eighteen (18) years from the Commencement Date (hereinafter
the
"Term").
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3.
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During
the Term of the Lease, Lessee agrees, at it's own cost and expense:
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a.
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To
pay all charges and expenses in connection with the operation of
each item
of the Leased Property;
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b.
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To
comply with all governmental laws, ordinances, regulations, requirements
and rules with respect to the use, maintenance and operation of
the
Factory Equipment; and
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c.
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To
make all repairs and replacements required to be made to maintain
the
Factory Equipment in good condition reasonable wear and tear excepted.
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2.
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Rent.
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1.
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The
aggregate rent payable with respect to the Leased Property shall
be in the
amount shown in Annex
A.
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2. |
Lessee
shall pay to Lessor the aggregate rental for the Lease for the
full period
and term for which the Leased Property is leased, such rental to
be
payable at such times and in such amounts as shown in Annex A.
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3. |
All
rent shall be paid at Lessor's place of business shown above, or
such
other place as Lessor may designate by written notice to the
Lessee.
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4.
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The
Lessee retains the right to set off or deduct the rents payable
from any
amount due from Lessor to the Lessee, by any other agreement or
transaction between the Lessor and Lessee.
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3.
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Loss
and Damage to Factory Equipment.
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1.
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Lessor
will assume and bear the risk of any partial or complete loss with
respect
to the Leased Property from any theft, loss, damage or destruction,
including normal wear and tear or governmental taking, whether
or not such
loss is covered by insurance or caused by any default or neglect
of
Lessee.
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2.
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The
liability of the Lessee will be limited to loss, damage or destruction,
caused by gross neglect or misuse by Lessee.
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3.
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Lessee
will give Lessor prompt notice of any damage to or loss of
any Factory Equipment and Lessor shall be
responsible for and pay the cost of all necessary repairs, maintenance
and
replacement of parts, to the Factory Equipment occurring during
the Lease
Term.
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4.
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Destruction
of Factory Equipment.
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1.
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If
any Factory Equipment is lost, totally destroyed, damaged beyond
repair or
taken by governmental and/or court action, the liability of the
Lessee to
pay rent therefore may be discharged and Lessor shall, at its own
expense,
cause such Factory Equipment to be restored to usable condition
or make
available to Lessee substitute equipment with similar (but no less)
manufacturing capabilities.
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2.
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In
the event Lessor has not caused the Factory Equipment to be restored
to
usable condition or has not made available appropriate substitute
equipment, within 15 business days from Lessee's notice, Lessee
may assume
such actions in order to restore the Factory into working order
and the
liability of the Lessee to pay rent therefore may be discharged.
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3.
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In
the event any of the Leased Property is being subject to any liquidation
proceeding or other similar proceeding initiated by creditors of
BDFC, Lessor will be obliged to make available to the Lessee, substitute
facility with similar (but no less) manufacturing capabilities
as the
Leased Property.
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4.
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No
oral agreement, guaranty, promise, condition, representation or
warranty
shall be binding; all prior conversations, agreements or representations
related hereto and/or to the Leased Property are integrated herein.
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5. |
Taxes.
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1. |
Lessee
agrees that, during the term of this Lease, in addition to the
rent and
all other amounts provided herein to be paid, it will promptly
pay all
taxes, assessments and other governmental charges (including penalties
and
interest, if any, and fees for titling or registration, if required)
levied or assessed upon the interest of Lessee in the Leased Property
or
upon the use or operation thereof or on the earnings arising therefrom;
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6. |
Lessor's
Title, Right of Inspection and Identification of
Factory.
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1. |
Title
to the Leased Property shall at all times remain in BDFC and Lessor.
Lessor will indemnify and hold Lessee harmless from any claims,
losses,
penalties, liens and processes which Lessee may suffer or may be
required
to pay in connection with the Leased Property.
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i.
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Upon
the expiration or termination of this Lease with respect any item
of the
Leased Property, Lessee at Lessee's sole expense shall return the
Leased
Property in the same operating condition, repair and appearance
as
delivered to Lessee on the Commencement Date, reasonable wear and
tear
excepted.
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2.
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Lessor
shall have the right from time to time during reasonable business
hours to
enter upon the leased premises or elsewhere for the purpose of
confirming
the existence, condition and proper maintenance of the Leased Property.
Lessor shall also have the right to demonstrate and show the Leased
Property to others.
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7.
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Possession,
Use and Changes in Location of Factory.
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1.
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So
long as Lessee shall not be in default under the Lease it shall
be
entitled to the possession and use of the Leased Property in accordance
with the terms of this Lease. The Leased Property shall be used in
the conduct of the lawful business of Lessee, and no item of the
Leased
Property shall be removed from its current location, without the
prior
written consent of Lessor. Lessee shall not, without Lessor's prior
written consent, part with possession or control of the Leased
Property or
attempt or purport to sell, pledge, mortgage or otherwise encumber
any of
the Leased Property or otherwise dispose of or encumber any interest
under
this Lease.
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8.
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Default.
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1.
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An
Event of Default shall occur if:
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(a)
Lessee fails to pay when due any installment of rent and such failure continues
for a period of 30 days;
(b)
Lessee shall fail to perform or observe any covenant, condition or agreement
to
be performed or observed by it hereunder and such failure continues uncured
for
15 days after written notice thereof to Lessee by Lessor;
(c)
Lessee ceases doing business as a going concern, makes an assignment for
the
benefit of creditors, admits in writing its inability to pay its debts as
they
become due, files a voluntary petition in bankruptcy, is adjudicated a bankrupt
or an insolvent, files a petition seeking for itself any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
arrangement under any present or future law or regulation or files an answer
admitting the material allegations of a petition filed against it in any
such
proceeding, consents to or acquiesces in the appointment of a trustee, receiver,
or liquidator of it or of all or any substantial part of its assets or
properties, or if it or its shareholder shall take any action looking to
its assets or properties, or if it or its shareholders shall
take any action looking to its dissolution or liquidation;
(d)
Within 60 days after the commencement of any proceedings against Lessee seeking
reorganization, arrangement, readjustment, liquidation, dissolution or similar
relief under any present or future statue, law or regulation, such proceedings
shall not have been dismissed, or if within 60 days after the appointment
without Lessee's consent or acquiescence of any trustee, receiver or liquidator
of it or of all or any substantial part of its assets and properties, such
appointment shall not be
vacated;
(e)
Lessee attempts to remove, sell, transfer, encumber, part with possession
or
sublet the Leased Property or any item thereof.
9.
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Remedies.
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1.
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Upon
the occurrence of an Event of Default, Lessor, at its option, may
exercise
any one or more of the following remedies:
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(a)
xxx for and recover all rent and other payments, then accrued or as thereafter
accruing, with respect to any or all items of the Leased
Property;
(b)
take possession of and render unusable any or all items of the Leased Property,
without demand or notice, wherever same may be located, without any court
order
or other process of law and without liability for any damages occasioned
by such
taking of possession.
(c)
sell or otherwise dispose of any or all items of Leased Property, whether
or not
in Lessor's possession, in a commercially reasonable manner at public or
private
sale and without notice to Lessee and apply the net proceeds of such sale,
after
deducting all costs of such sale including but not limited to, costs of
transportation, repossession, storage, refurbishing, advertising and brokers'
fees to the obligations of Lessee hereunder with Lessee remaining liable
for any
deficiency and with any excess being retained by Lessor;
(d)
terminate this Lease as to any or all items of Leased Property
or,
(e)
utilize any other remedy available to Lessor at law or in
equity.
2. |
A
termination hereunder will occur only upon notice by Lessor to
Lessee and
only with respect to such Leased Property item as to which Lessor
specifically elects to terminate in such notice. Except as to such
Leased Property with respect to which there is a termination, this
Lease
will remain in full force and effect and Lessee will be and remain
liable
for the full performance of all its obligations
hereunder.
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3. |
No
right or remedy conferred herein is exclusive of any other right
or
remedy conferred herein or by law, but all such rights and
remedies are cumulative of every other right or remedy conferred
hereunder
or at law or in equity, by statute or otherwise, and may be exercised
concurrently or separately from time to
time.
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10.
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Assignment,
Notices and Waivers.
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1.
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This
Lease and all rights of Lessor hereunder may be assignable by Lessor
to
any of its subsidiary companies, without Lessee's prior consent.
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2.
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Lessee
may assign this Lease or its interests or enter into any sub-lease
with
respect to the Leased Property covered hereby, with Lessor's prior
consent, which will not unreasonably withheld.
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3.
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All
notices to Lessor shall be delivered in person to an officer of
the
Lessor, or shall be sent certified mail return receipt requested
to Lessor
at its address shown herein or at any later address last known
to the
sender. All notices to Lessee shall be in writing and shall be
delivered
by mail at its address shown herein or at any later address last
known to
the sender. A waiver of a default shall not be a waiver of any
other or a
subsequent default.
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11.
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Lease
Irrevocability and Charges.
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1.
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This
Lease is irrevocable for the full Term thereof and for the aggregate
rentals therein reserved and the rent shall not xxxxx by reason
of
termination of Lessee's right of possession and/or the taking of
possession by the Lessor or for any other
reason.
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12. |
Miscellaneous.
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1. |
If
any provision of this Lease is contrary to, prohibited by or deemed
invalid under applicable laws or regulations of any jurisdiction,
such provision shall be inapplicable and deemed omitted but shall
not invalidate the remaining provisions
hereof.
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2.
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In
the event this Lease or any part hereof is deemed to be a lease
intended
as security, Lessee grants a security interest in the Leased Property
as
security for all of Lessee's indebtedness and obligations owing
under the
Lease.
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13.
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Governing
Law; Venue, Invalidity.
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1.
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This
Agreement and the rights of the parties hereunder shall be governed
by and
construed in accordance with the laws of the State of New York
including
all matters of construction, validity, performance, and enforcement
and
without giving effect to the principles of conflict of laws.
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2.
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The
parties hereto shall attempt to resolve any dispute, controversy,
difference or claim arising out of or relating to this Agreement
by
negotiation in good faith. If such good negotiation fails to resolve
such
dispute, controversy, difference or claim within fifteen (15) days
after
any party delivers to any other party a notice of its intent to
submit
such matter to arbitration, then any party to such dispute, controversy,
difference or claim may submit such matter to arbitration in the
City of
New York, New York.
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3.
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This
lease contains the entire agreement between the parties with respect
to
the lease of the Leased Property, and may not be altered, modified,
terminated or discharged except by a writing signed by the party
against
whom such alteration, modification, termination or discharge is
sought.
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Lessor
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B&D
FOOD CORP.,
a
Delaware corporation
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SBKF
Investments, Ltd.,
a
UK company
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By:
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By:
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Its:
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Its:
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Annex
A
Note
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Payment
schedule is based on an 18 year Payable with first payment
due a year from
execution of the lease
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Payment
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Date
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Remaining Balance
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|||||||
Lease
Price
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14,452,363.62
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|||||||||
1
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802,909.09
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9/28/2009
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13,649,454.53
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|||||||
2
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802,909.09
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9/28/2010
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12,846,545.44
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|||||||
3
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802,909.09
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9/28/2011
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12,043,636.35
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|||||||
4
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802,909.09
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9/28/2012
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11,240,727.26
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|||||||
5
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802,909.09
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9/28/2013
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10,437,818.17
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|||||||
6
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802,909.09
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9/28/2014
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9,634,909.08
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|||||||
7
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802,909.09
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9/28/2015
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8,831,999.99
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|||||||
8
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802,909.09
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9/28/2016
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8,029,090.90
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|||||||
9
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802,909.09
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9/28/2017
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7,226,181.81
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|||||||
10
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802,909.09
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9/28/2018
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6,423,272.72
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|||||||
11
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802,909.09
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9/28/2019
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5,620,363.63
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|||||||
12
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802,909.09
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9/28/2020
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4,817,454.54
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|||||||
13
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802,909.09
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9/28/2021
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4,014,545.45
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|||||||
14
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802,909.09
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9/28/2022
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3,211,636.36
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|||||||
15
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802,909.09
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9/28/2023
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2,408,727.27
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|||||||
16
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802,909.09
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9/28/2024
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1,605,818.18
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|||||||
17
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802,909.09
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9/28/2025
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802,909.09
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|||||||
18
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802,909.09
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9/28/2026
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0.00
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