Document:

Unassociated Document

    Exhibit
      10.50

    FIRST
      AMENDMENT TO LEASE

     

    THIS
      FIRST AMENDMENT TO LEASE (this “Amendment”)
      is
      dated as of October 2, 2006 by and between HINES NURSERIES, INC., a California
      corporation (“Tenant”),
      and
      QUANTUM VENTURES, LLC, a Florida limited liability company (“Landlord”).

     

    R
      E C I T
      A L S

     

    A. Landlord
      and Tenant have previously entered into that certain Lease dated
      November 7, 2005, as amended by that certain First Amendment to Sublease
      dated of even date herewith (as amended, the “Lease”).
      

     

    B. Concurrently
      herewith, Tenant, as sublandlord, and Costa Nursery Farms, LLC, a Florida
      limited liability company, as subtenant (“Subtenant”)
      shall
      enter into that certain Sublease dated of even date herewith for the premises
      further described therein (“Sublease”).
      

     

    C. Concurrently
      herewith, Landlord and Subtenant shall enter into that certain Consent and
      Recognition Agreement dated of even date herewith (“Consent
      Agreement”).
      

     

    D. All
      capitalized terms used herein without definition are defined as set forth in
      the
      Lease.

     

    E. Landlord
      and Tenant hereby desire by this Amendment to amend the Lease upon and subject
      to each of the terms, conditions, and provisions set forth herein.

     

    NOW,
      THEREFORE, in consideration of the recitals set forth above, the agreements
      set
      forth below and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree
      as follows:

     

    1.     Reduction
      of Premises/Term.
      Landlord and Tenant acknowledge and agree that the premises has been reduced
      to
      the Reduced Premises in accordance with the terms of the Lease. Landlord and
      Tenant hereby reduce the Lease Term of the Lease so that the Lease Term will
      expire on June 30, 2007. From and after the date of this Amendment, the
      term “Lease
      Term”
shall
      mean the Lease Term as reduced pursuant to this Amendment. Landlord and Tenant
      acknowledge and agree that notwithstanding anything to the contrary in
      Sections 2 and 3 of the Lease, Tenant shall not have any options to extend
      the Lease Term. 

     

    2.     Consent
      to Sublease.
      Landlord hereby consents to the Sublease, however the consent to the Sublease
      shall not in any way reduce, modify or absolve the Tenant from the obligations
      under the Lease. Landlord and Tenant acknowledge that Landlord’s consent
      to the Sublease shall not constitute a consent to further subleases, assignments
      and transfers by Tenant of its interest in the Lease or the Premises.

     

    3.     Bonus
      Rent.
      In
      consideration for Landlord’s consent to the Sublease, Tenant agrees that fifty
      percent (50%) of the rent required to be paid to the Tenant from Subtenant
      under
      the Sublease as attached hereto (“Sublease
      Rent”),
      shall
      be paid by Tenant to Landlord within no later than the fifth (5) day of each
      calendar month. Landlord and Tenant acknowledge and agree that Tenant will
      continue to have the obligation to pay Rent to Landlord for the remainder of
      the
      Lease Term in the amount of Three Thousand Seven Hundred Seventeen and 08/100
      Dollars ($3,717.08) per month.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    4.     Effectiveness.
      This
      Amendment shall not become effective or binding upon Landlord or Tenant until
      the (a) “closing” under the Inventory and Asset Purchase Agreement dated of even
      date herewith between Tenant and Subtenant; and (b) the execution by Landlord
      of
      the Consent Agreement.

     

    5.     Counterparts.
      This
      Amendment may be executed in any number of identical counterparts and delivered
      by facsimile, and each counterpart hereof shall be deemed to be an original
      instrument, but all counterparts hereof taken together shall constitute but
      a
      single instrument.

     

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

     

    
      	 	
              Tenant:

               

            
	 	
              HINES
                NURSERIES, INC., a California corporation

            
	 	 
	 	
              By:       
                /s/
                Claudia M. Pieropan

            
	 	
                          
                 Claudia M. Pieropan, Chief Financial

                           
                Officer, Secretary and Treasurer

            
	 	 
	 	 
	 	
              Landlord:

               

            
	 	
              QUANTUM
                VENTURES, LLC, a Florida limited liability company

            
	 	
               

            
	 	
              By:       
                /s/
                Oscar Barbara

            
	 	
              Name:  
                Oscar
                Barbara

            
	 	
              Its:       
                President
                of Manager

            

    

     

    
 

     

    2Unassociated Document

    Exhibit
      10.51

     

    LIMITED
      WAIVER TO LOAN
      AND SECURITY AGREEMENT

     

    This
      LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT (this “Waiver”)
      dated
      as of April 30, 2007 is by and among Hines Nurseries, Inc., a California
      corporation, the parties hereto as lenders (each individually, a “Lender” and
      collectively, “Lenders” as hereinafter further defined) and Bank of America,
      N.A., in its capacity as agent for Lenders (in such capacity, “Agent”).
      Capitalized terms used and not otherwise defined herein shall have the meanings
      assigned to them in the Loan Agreement (defined below).

     

    R
      E C I T
      A L S: 

    

    WHEREAS,
      Borrower, the Agent and the Lenders have entered into that certain Loan and
      Security Agreement dated as of January 18, 2007 (as amended, the
“Loan
      Agreement”);
      and

     

    WHEREAS,
      Borrower, Agent and Lenders have agreed to extend the date for providing audited
      financial statements and waive certain Events of Default upon the terms and
      conditions contained herein;

     

    NOW,
      THEREFORE, in consideration of the premises contained herein, and for other
      good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    Section
      1    Limited
      Waiver to the Loan Agreement.
      Borrower acknowledges that certain Events of Default exist (or may arise) under
      Section 11.1 of the Loan Agreement as a result of (a) Borrower’s failure to
      deliver annual audited financial statements for the year ending December 31,
      2006 as required by Section 10.1.2 of the Loan Agreement within 90 days of
      the
      end of such year end, (b) Borrower’s failure to provide notice of default under
      the Indenture for failure to provide the audited financial statements for the
      year ending December 31, 2006 and unaudited financial statements for the fiscal
      quarter ending March 31, 2007 (and related public filings) as required by
      Section 10.1.3(c) of the Loan Agreement and (c) the Borrower’s restatement of
      its 2004 audited financial statements as described on the schedule dated April
      27, 2007 and previously delivered by the Borrower to the Required Lenders which
      restatement may be material and a breach of the representation made in Section
      9.1.8 of the Loan Agreement (collectively, the “Events of Default”). Immediately
      upon the satisfaction of each of the conditions precedent set forth in
Section 2
      below,
      the Agent and Required Lenders hereby waive the Events of Default; provided,
      that
      Borrower shall (x) deliver such audited financial statements for the fiscal
      year
      ending December 31, 2006 required by Section 10.1.2 of the Loan Agreement
      (together with any other financial information and documents required to be
      delivered in connection with such financial statements) and (y) deliver the
      audited financial statements for the year ending December 31, 2006 and unaudited
      financial statements for the fiscal quarter ending March 31, 2007 (and all
      related public filings) required by the Indenture and cure any related defaults
      thereunder, in each case under clauses (x) and (y) by no later than May 28,
      2007, the failure of which shall cause such waiver to be terminated and result
      in such Events of Default continuing to exist under the Loan Agreement. The
      foregoing is a limited waiver and shall not constitute a waiver of any other
      Default or Event of Default that may exist or arise or constitute a waiver
      or
      modification to any other term or condition set forth in the Loan Agreement.
      

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    Section
      2    Conditions
      to Effectiveness.
      The
      effectiveness of the waiver set forth in Section 1
      above is
      subject to the satisfaction of each of the following conditions:

     

    (a)    Agent
      shall have received a duly executed counterpart of this Waiver from Borrower
      and
      the Required Lenders; and

     

    (b)    Agent
      shall have received a reaffirmation from Parent of its Guaranty.

     

    Section
      3    Representations,
      Warranties and Covenants.
      Borrower represents, warrants and covenants to Agent and Lenders, upon the
      effectiveness of this Waiver that:

     

    (a)    No
      Default; etc.
      No
      Default or Event of Default has occurred and is continuing after giving effect
      to this Waiver or would result from the execution or delivery of this Waiver
      or
      the consummation of the transactions contemplated hereby.

     

    (b)    Corporate
      Power and Authority; Authorization.
      Borrower has the power and authority to execute and deliver this
      Waiver.

     

    (c)    Execution
      and Delivery.
      Borrower has duly executed and delivered this Waiver.

     

    (d)    Enforceability.
      This
      Waiver constitutes the legal, valid and binding obligations of Borrower,
      enforceable against Borrower in accordance with its terms, except as enforcement
      may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
      laws affecting the enforcement of creditors’ right generally, and by general
      principles of equity.

     

    Section
      4    Miscellaneous.

     

    (a)    Effect;
      Ratification.
      Borrower acknowledges that all of the reasonable legal expenses incurred by
      Agent in connection herewith shall be reimbursable under Section 3.4
      of the
      Loan Agreement. The waiver set forth herein is effective solely for the purposes
      set forth herein and shall be limited precisely as written, and shall not be
      deemed to (i) be a consent to any amendment, waiver or modification of any
      other term or condition of any Loan Document or (ii) prejudice any right or
      rights that any Lender may now have or may have in the future under or in
      connection with any Loan Document. This Waiver shall be construed in connection
      with and as part of the Loan Documents and all terms, conditions,
      representations, warranties, covenants and agreements set forth in the Loan
      Documents, except as herein amended are hereby ratified and confirmed and shall
      remain in full force and effect.

     

    (b)    Counterparts;
      etc.
      This
      Waiver may be executed in any number of counterparts, each such counterpart
      constituting an original but all together one and the same instrument. Delivery
      of an executed counterpart of this Waiver by fax shall have the same force
      and
      effect as the delivery of an original executed counterpart of this Waiver.
      Any
      party delivering an executed counterpart of this Waiver by fax shall also
      deliver an original executed counterpart, but the failure to do so shall not
      affect the validity, enforceability or binding effect of this
      Waiver.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (c)    Governing
      Law.
      This
      Waiver shall be deemed a Loan Document and shall be governed by, and construed
      and interpreted in accordance with the internal laws of the State of New York
      but excluding any principles of conflicts of law.

     

    (d)    Reaffirmation.
      Parent
      hereby reaffirms all of its obligations as a guarantor of the Obligations
      pursuant to its Guaranty dated as of January 18, 2007.

     

    [Signature
      Pages Follow]

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, Agent, Lenders and Borrower have caused this Limited Waiver
      to
      Loan and Security Agreement to be duly executed as of the day and year first
      above written.

     

    
      
        
          	 	
                  BORROWER: 

                
	 	 
	 	HINES NURSERIES, INC. 
	 	 
	 	By:   /s/
                  Claudia
                  Pieropan                                                             
                           
                  
	 	Title:   
                  CFO                                                                                      
	 	Name:  Claudia
                  Pieropan                                                               
                   
	 	 
	 	PARENT: 
	 	 
	 	HINES HORTICULTURE, INC. 
	 	 
	 	By:   /s/
                  Claudia
                  Pieropan                                                                        
	 	Title:    CFO                                                                                        
	 	Name:  Claudia
                  Pieropan                                                                  
	 	 
	 	
                  AGENT
                    AND LENDERS: 

                
	 	 
	 	
                  BANK
                    OF AMERICA, N.A., as Agent and a Lender 

                
	 	 
	 	By:  /s/
                  Sandra J.
                  Evans                                                                 
                  
	 	Title:    Sr.
                  Vice
                  President                                                                
	 	
                  Name:  Sandra
                    J. Evans                                                                  
                    

                
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,
                  as a
                  Lender 
	 	 
	 	By:   /s/ Gregory
                  Hall                                                                                  
	 	Title:    Vice
                  President                                                                        
	 	
                  Name:  Gregory
                    Hall                                                                         

                
	 	 
	 	GMAC COMMERCIAL FINANCE
                  LLC 
	 	 
	 	By: /s/
                  Robert
                  Richardson                                                           
                   
	 	Title:    Director                                                                                 
	 	Name:  Robert
                  Richardson                                                            
                   

        

         

        [Signature
          Page to Amendment No. 2 to  

        Loan
          and Security Agreement] 

        S-1

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