SECOND AMENDMENT TO LEASE AGREEMENT
SECOND AMENDMENT TO LEASE AGREEMENT entered into as of the 1st
day of January 1998, by and between Xxxxxxx X. Xxxxxxx and Xxxxxxxx
X. Xxxxxxx (hereinafter referred to collectively as the "Lessors")
and Xxxxx Nursery Farms, Inc. (the "Company") a Puerto Rico
corporation.
WHEREAS, the Lessors and the Company entered into a Lease Agreement
dated as of January 1, 1993 (the "Lease Agreement") pursuant to which the
Lessors leased to the Company 90 cuerdas of property (the "Original Demised
Premises") located in Xxxx Xxxx, Puerto Rico, in which the Company currently
operates a nursery farms;
WHEREAS, the Lease Agreement was amended by a First Amendment to Lease
Agreement dated as of January 1, 1994, pursuant to which the Lessors agreed to
lease to the Company an additional 20 acre parcel of land (the "Additional
Demised Premises") also for use as part of the Company's nursery farm business;
WHEREAS, the Company has exercised its option to renew the lease of the
Original Demised Premises for an additional five year period.
WHEREAS, the term of the lease for the Additional Demised Premises was
not subject to a renewal option and expired on December 31, 1997;
WHEREAS, the parties have agreed to continue the lease arrangement for
the Additional Demised Premises on a month-to-month basis as well as certain
other amendments to the Lease Agreement;
2
NOW THEREFORE, in consideration of the mutual covenants hereinafter set
forth, the parties hereto agree as follows:
1. Section 2 of the Lease Agreement, as amended, is hereby amended to
read in its entirety as follows:
"Term: The Property is leased for a five (5) year term (as
such term may be extended pursuant to Section 4 hereof, hereinafter
referred to as the "Term"), commencing on January 1, 1993 and ending on
December 31, 1997. Notwithstanding the election of the Lessee to
exercise its option to renew the term of this Lease as it relates to
the Demised Premises for an additional five year term ending on
December 31, 2002, the term of this Lease with respect to the
Additional Demised Premises is extended on a month-to-month basis at a
monthly rental of $1,750 per month; provided, however, that either
party may terminate the lease for the Additional Demised Premises by
giving the other party thirty (30) days' prior notice of its intention
to terminate the lease.
2. Section 7 of the Lease Agreement, as amended, is hereby amended by
adding a new subparagraph (d) to read in its entirety as follows:
"(d) Anything herein to the contrary notwithstanding, upon
the termination of this Lease Agreement with respect to the
Additional Demised Premises, the Lessor shall be obligated
to the Leasee the book value of the Lessee's leasehold
improvements on the Additional Demised Premises
as of the date of such termination". The Lessor shall have
until March 1, 2001, to pay such amount and no interest will
accrue on such amount pending payment.
3. Except as specifically amended hereby, the Lease Agreement shall
remain in full force and effect. This Second Amendment to Lease Agreement does
not constitute a waiver or modification of the rights or obligations of any
party except as explicitly set forth above.
IN WITNESS WHEREOF, the parties hereto have executed this Second
Amendment To Lease Agreement as of the date first above written.
LESSOR:
/s/ Xxxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
/s/ Xxxxxxxx X. Xxxxxxx
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Xxxxxxxx X. Xxxxxxx
LESSEE:
Xxxxx Nursery Farms, Inc.
By: /s/ Xxxxxxx Xxxxxx
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Name: Xxxxxxx Xxxxxx
Title: Vice President &
Chief Financial Officer
