EXHIBIT 10.2
LEASE AGREEMENT
RANCHO ALOE (CR), SOCIEDAD ANONIMA, corporate identity number 3-101-
221004, herein represented by its President with full powers of
attorney ▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇, of legal age, single, retired, American
citizen, bearer of passport number [ deleted for confidentiality ],
(company hereinafter referred to as "RANCHO ALOE"), and
SABILA INDUSTRIAL, SOCIEDAD ANONIMA, corporate identity number 3-101-
123588, herein represented by its President with full powers of
attorney Mr. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, of legal age, married, businessman,
American citizen, bearer of the social security card number 423-
503336, (company hereinafter referred to as "SABILA"), have entered
into the following LEASE AGREEMENT:
FIRST: RANCHO ALOE is the owner of three properties located in
Bagaces, Guanacaste Province, Costa Rica, numbers 20223-000, 35965-000
and 18144-000.
SECOND: RANCHO ALOE leases to SABILA who hereby accepts,
approximately 7 hectares of land of the previously described
properties, (hereinafter referred to as the PROPERTY). Upon mutual
agreement of both parties, the size of the PROPERTY may be subject to
changes to accommodate to SABILA's needs, with SABILA's payments
changed accordingly.
THIRD: The PROPERTY shall be used exclusively for the planting of Aloe
▇▇▇▇ plants.
FOURTH: This lease shall be for the term of one year beginning April
26th, 1999 and expiring at midnight on April 25, 2000. This Agreement
shall renew automatically for successive one-year terms until such
time as SABILA'S documented purchase cost of the plants is paid to
SABILA in full by RANCHO ALOE. With the exception of the first six
months of the lease, either party shall be entitled to terminate the
agreement with a one-month written notice to the other party with
compensation for appropriate expenses, such as the purchase cost of
the plants ($74,794 total purchase cost).
FIFTH: The total monthly rent is U.S. SEVEN DOLLARS (U.S.$7.00) per
hectare. Payments are due on the 26th day of each month made payable
to RANCHO ALOE's offices in Bagaces.
SIXTH: RANCHO ALOE agrees to perform the immediate and adequate
preparation of the PROPERTY for the plantation of Aloe ▇▇▇▇. The cost
of the preparation of the terrain shall be covered entirely by RANCHO
ALOE. SABILA shall pay RANCHO ALOE the amount of U.S.$135.00 per
hectare for the labor of to plant Aloe ▇▇▇▇ plants on the PROPERTY.
Additionally, SABILA shall pay every month that this agreement is in
effect U.S.$122.00 per hectare for the maintenance of the plots and
organic weed and pest control. Any use of non-organic herbicide or
pesticide on the plants or soil other than urea will result in RANCHO
ALOE compensating SABILA for the cost of purchasing and planting in a
comparable site replacement plants of equal size and maturity. Aloe
▇▇▇▇ plants cultivated in the leased area shall be maintained by
RANCHO ALOE in the same condition as other plots owned by RANCHO ALOE
in the same farm. SABILA shall not pay for any irrigation during the
term of this agreement, unless specifically requested by SABILA. If
irrigation is requested, it shall be performed according to written
specifications provided by SABILA and SABILA shall pay RANCHO ALOE
every month U.S.$150.00 per hectare. SABILA shall not be responsible
responsibility of RANCHO ALOE to cover all costs in labor hand,
organic fertilizer, electricity, municipal and land taxes and any
other expenses involved in the lease or to necessary to perform the
previously described labors. For all legal purposes, RANCHO ALOE
shall be considered as the sole and responsible employer of all the
workers to be hired necessary for the performance of this agreement.
SEVENTH: At the termination of this agreement, for any reason, RANCHO
ALOE agrees to purchase from SABILA all the plants located in the
plots, for an amount equal to SABILA's documented value, which
includes purchase price of $74,794, transportation, import taxes,
lease, planting, maintenance, irrigation and any other involved costs.
For all legal purposes, SABILA will be considered as the sole and
legal owner of the plants until complete payment is made by RANCHO
ALOE for the total purchase price.
EIGHTH: RANCHO ALOE shall be liable for any damages, losses or thefts
that any visitor, workers or any third party may produce to the
property of SABILA in the leased area. RANCHO ALOE shall be in
charge of the vigilance and security of the leased area. SABILA shall
not be liable for any accident that may occur in the leased area.
There shall be no harvesting of leaves or de-prepping of the plants
except at the specific instruction of SABILA.
NINTH: The breach, by either party, of any of the terms of this
agreement, shall entitle the affected party, to request the immediate
termination of the agreement and request the payment of any damages
and loss of profit.
In faith of the above stated, we sign this agreement in two originals,
on this 23rd the day of September 1999
By RANCHO ALOE (CR), S.A.
________________________
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By SABILA INDUSTRIAL, S.A.
________________________
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