Document:

Unassociated Document

    

    

    EXHIBIT
10.2

     

     

    FIRST AMENDMENT TO B&D
FOOD CORPORATION PREFERRED SHARE SUBSCRIPTION
AGREEMENT

     

     

    THIS
FIRST AMENDMENT TO SUBSCRIPTION AGREEMENT (this "Agreement") is made as of
November 19, 2008, by and among B&D Food Corporation, a corporation
organized under the laws of Delaware ("BDFC"), and Daniel Ollech, Jacques Ollech
and Mark Radom, each an individual residing in Israel (the
"Purchasers").

     

    Whereas, the parties hereto
entered into a subscription agreement (the “Original Agreement”) relating to the
Series A Preferred Shares (defined below) on September 28, 2008
in order to convert the outstanding principal and interest owing in respect of a
$10,000,000 pursuant to a promissory note dated July 8, 2005, as amended by the
amendment to the promissory note dated May 7, 2007 and a second amendment to the
promissory note dated September 28, 2008 (the “Note”), as well as certain
management fees owed to Daniel and Jacques Ollech into equity in
BDFC;

     

    Whereas, the parties to the
Original Agreement erroneously indicated the number of Series A Preferred Shares
referenced therein as 373,595,592 and now wish to correct this mistake by
indicating the correct number of shares;

     

    Now, therefore, in
consideration of the mutual premises and covenants contained herein, and
intending to be legally bound, the parties hereto agree as follows:

     

    1.
Section 1.1 of the Original Agreement shall be hereby amended by replacing
“373,595,592” with “3,735,956”.  Section 1.2 of the Original Agreement
shall be amended by adding at the end of this section the text “and Daniel
Ollech and Jacques Ollech releasing their claim for certain management fees
promised to them by BDFC (the Series A Preferred Shares corresponding to such
management fees being 992,067 Series A Preferred Shares).” The second bullet
point in Section 1.3 shall hereby be amended by replacing “one” with
“ten”.  These amendments shall be effective as of September 28,
2008.

     

    2. All
other terms and conditions of the Original Agreement remain in full force and
effect.

     

    3. Governing Law and
Jurisdiction. This Agreement shall be governed by, and be construed in
accordance with, the laws of the State of New York (without giving effect to the
conflicts of laws provisions thereof). The parties agree that any disputes
arising hereunder shall be submitted to the non-exclusive jurisdiction of the
courts of the State of New York.

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
first above written.

     

     

    B&D Food
Corporation

     

     

    _______________________________

     

    Daniel
Ollech

     

     

    _______________________________

    

    Jacques
Ollech

     

     

    _______________________________

    

    Mark
Radom

    

     

    ______________________________Unassociated Document

     

    EXHIBIT
10.3

     

     

    LEASE
AGREEMENT

    

    This
Lease Agreement ("Lease
Agreement") is dated for reference as of September 26, 2008, between SBKF
Investments, Ltd., a corporation formed pursuant to the laws of England, having
an office at Unit 150 Imperial Court Exchange Street East, L2 3AB Liverpool, UK
("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 575 Madison Avenue, Suite 1006, New
York, NY 10027-2511 United States ("Lessee")

    

    
      	
              1. 

            	
              Factory Lease and
      Term.

            

    

    

    
      	
            	
              1.1

            	
              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".

            

    

    

    
      	
            	
              1.2

            	
              The
      Lessee will take possession of the Leased Property, on or before July 1,
      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").

            

    

    

    
      	
            	
              1.3

            	
              During
      the Term of the Lease, Lessee agrees, at it's own cost and
      expense:

            

    

    

    
      	
            	
              (a)

            	
              To
      pay all charges and expenses in connection with the operation of each item
      of the Leased Property;

            

    

    

    
      	
            	
              (b)

            	
              To
      comply with all governmental laws, ordinances, regulations, requirements
      and rules with respect to the use, maintenance and operation of the
      Factory Equipment; and

            

    

    

    
      	
            	
              (c)

            	
              To
      make all repairs and replacements required to be made to maintain the
      Factory Equipment in good condition reasonable wear and tear
      excepted.

            

    

    

    
      	
              2.  

            	
              Rent.

            

    

    

    
      	
            	
              2.1 

            	
              The
      aggregate rent payable with respect to the Leased Property shall be in the
      amount shown in Annex
      A.

            

    

    

    
      	
            	
              2.2

            	
              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.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              2.3  

            	
              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.

            

    

    

    
      	
            	
              2.4  

            	
              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.

            

    

    

    
      	
              3.  

            	
              Loss and Damage to Factory
      Equipment.

            

    

    

    
      	
            	
              3.1

            	
              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.

            

    

    

    
      	
            	
              3.2

            	
              The
      liability of the Lessee will be limited to loss, damage or destruction,
      caused by gross neglect or misuse by
Lessee.

            

    

    

    
      	
            	
              3.3

            	
              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.

            

    

    

    

    
      	
              4.  

            	
              Destruction
      of Factory Equipment.

            

    

    

    
      	
            	
              4.1

            	
              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.

            

    

    

    
      	
            	
              4.2

            	
              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.

            

    

    

    
      	
            	
              4.3

            	
              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.

            

    

    

    
      	
            	
              4.4

            	
              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.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
              5.  

            	
              Taxes.

            

    

    

    
      	
            	
              5.1

            	
              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;
      and

            

    

    

    
      	
              6.  

            	
              Lessor's Title, Right of
      Inspection and Identification of
Factory.

            

    

    

    
      	
            	
              6.1

            	
              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.

            

    

    

    
      	
            	
              (i)

            	
              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.

            

    

    

    
      	
            	
              6.2

            	
              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.

            

    

    

    
      	
              7.  

            	
              Possession,
      Use and Changes in Location of
Factory.

            

    

    

    
      	
            	
              7.1

            	
              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.

            

    

    

    
      	
              8.  

            	
              Default.

            

    

    

    
      	
            	
              8.1

            	
              An
      Event of Default shall occur if:

            

    

    

    (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.  

            	
              Remedies.

            

    

    

    
      	
            	
              9.1

            	
              Upon
      the occurrence of an Event of Default, Lessor, at its option, may exercise
      any one or more of the following
remedies:

            

    

    

    (a) sue
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.

    

    
      	
            	
              9.2

            	
              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.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	
            	
              9.3

            	
              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.

            

    

    

    
      	
              10.  

            	
              Assignment, Notices and
      Waivers.

            

    

    

    
      	
            	
              10.1

            	
              This
      Lease and all rights of Lessor hereunder may be assignable by Lessor to
      any of its subsidiary companies, without Lessee's prior
      consent.

            

    

    

    
      	
            	
              10.2

            	
              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.

            

    

    

    
      	
            	
              10.3

            	
              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.

            

    

    

    
      	
              11.  

            	
              Lease Irrevocability and
      Charges.

            

    

    

    
      	
            	
              11.1

            	
              This
      Lease is irrevocable for the full Term thereof and for the aggregate
      rentals therein reserved and the rent shall not abate by reason of
      termination of Lessee's right of possession and/or the taking of
      possession by the Lessor or for any other
  reason.

            

    

    

    
      	
              12.  

            	
               Miscellaneous.

            

    

    

    
      	
            	
              12.1

            	
              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.

            

    

    

    
      	
            	
              12.2

            	
              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.

            

    

    

    
      	
              13.  

            	
              Governing Law; Venue,
      Invalidity.

            

    

    

    
      	
            	
              13.1

            	
              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.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              13.2

            	
              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.

            

    

    

    
      	
            	
              13.3

            	
              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.

            

    

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement, as of the date first written
hereinabove.

     

     

    
      	
              Lessee

            	 
      	
              Lessor

            
	
              B&D
      FOOD CORP.,

              a
      Delaware corporation

               

              By:

              Its:

            	 
      	
              SBKF
      Investments, Ltd.,

              a
      UK company

               

              By:

              Its:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Annex
A

     

    
      
        	
                Note

              	
                 Payment schedule
      is based on an 18 year Payable with first payment due a year from
      execution of the lease

              

      

      

      

      
        
          	 
      	
                  Payment

                	
                  Date

                	
                  Remaining
      Balance

                
	
                  Lease
      Price

                	 
      	 
      	
                  14,452,363.62

                
	
                  1

                	
                  802,909.09

                	
                  9/28/2009

                	
                  13,649,454.53

                
	
                  2

                	
                  802,909.09

                	
                  9/28/2010

                	
                  12,846,545.44

                
	
                  3

                	
                  802,909.09

                	
                  9/28/2011

                	
                  12,043,636.35

                
	
                  4

                	
                  802,909.09

                	
                  9/28/2012

                	
                  11,240,727.26

                
	
                  5

                	
                  802,909.09

                	
                  9/28/2013

                	
                  10,437,818.17

                
	
                  6

                	
                  802,909.09

                	
                  9/28/2014

                	
                  9,634,909.08

                
	
                  7

                	
                  802,909.09

                	
                  9/28/2015

                	
                  8,831,999.99

                
	
                  8

                	
                  802,909.09

                	
                  9/28/2016

                	
                  8,029,090.90

                
	
                  9

                	
                  802,909.09

                	
                  9/28/2017

                	
                  7,226,181.81

                
	
                  10

                	
                  802,909.09

                	
                  9/28/2018

                	
                  6,423,272.72

                
	
                  11

                	
                  802,909.09

                	
                  9/28/2019

                	
                  5,620,363.63

                
	
                  12

                	
                  802,909.09

                	
                  9/28/2020

                	
                  4,817,454.54

                
	
                  13

                	
                  802,909.09

                	
                  9/28/2021

                	
                  4,014,545.45

                
	
                  14

                	
                  802,909.09

                	
                  9/28/2022

                	
                  3,211,636.36

                
	
                  15

                	
                  802,909.09

                	
                  9/28/2023

                	
                  2,408,727.27

                
	
                  16

                	
                  802,909.09

                	
                  9/28/2024

                	
                  1,605,818.18

                
	
                  17

                	
                  802,909.09

                	
                  9/28/2025

                	
                  802,909.09

                
	
                  18

                	
                  802,909.09

                	
                  9/28/2026

                	
                  0.00

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