Document:

exv10w2

 

Exhibit 10.2

LEASE AGREEMENT

(OFFICE SPACE)

     THIS LEASE AGREEMENT, made and entered into this 15th day of February, 2005, by and between
LIMONEIRA COMPANY, a Delaware corporation (hereinafter referred to as “Landlord”), and CALAVO
GROWERS, INC., a California corporation (hereinafter referred to as “Tenant”);

WITNESSETH:

ARTICLE I

DEMISED PREMISES

     1.01 Landlord demises and leases to Tenant, and Tenant rents from Landlord, those certain
premises (the “Premises”) in the City of Santa Paula, County of Ventura, and State of California,
described as follows: the first and second floors of the east wing and three offices in the center
building of the Limoneira Ranch Headquarters located at 1141 Cummings Road, Santa Paula, California
93060 (the “Limoneira Headquarters Building”), containing approximately 9,490 square feet, as
depicted on Exhibit A attached hereto, together with the improvements and fixtures described on
Exhibit B hereto, all of which are to be purchased and installed by Landlord at its sole expense.

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ARTICLE II

TERM

     2.01 The term of this Lease shall commence on February 15, 2005, and shall continue thereafter
for a period of ten (10) years. Tenant shall have options to extend this Lease for two additional
terms of five (5) years each. Each such option may be exercised by written notice from Tenant to
Landlord given not less than ninety (90) days prior to expiration of the then current Lease term,
provided that an Event of Default (as defined below) does not exist under this Lease at the time it
delivers its written notice.

ARTICLE III

RENT

     3.01 During the first year of the term of this Lease, Tenant shall pay rent to Landlord annual
rental of Two Hundred Seven Thousand Two Hundred Twenty-Six Dollars and Sixty Cents ($207,226.60)
in monthly installments of Seventeen Thousand Two Hundred Sixty-Eight Dollars and Eighty-Eight
Cents ($17,268.88) per month on or before the tenth (10th) day of each calendar month
for the current calendar month. The payment of said rent shall begin on the commencement date as
provided in Section 2.01 hereof. Said rent shall be paid at the office of Landlord, located at
1141 Cummings Road, Santa Paula, California 93060, or at such other place as may be designated in
writing from time to time by Landlord. Rent shall be adjusted annually commencing in February,
2007, effective as of the fifteenth day of February to reflect to increase in the “CPI” as of that
month over the CPI for February, 2005. No such increase shall be in excess of five percent (5%) in
any year. CPI for purposes of this Lease shall mean the

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Consumer Price Index for all Urban Consumers for the Los Angeles, Orange and Riverside County
areas. In the event that such Index is no longer published at the time of a scheduled rent
adjustment, Landlord and Tenant shall agree upon and utilize the most comparable index then being
published.

ARTICLE IV

USE OF PREMISES

     4.01 Tenant shall occupy and use the Demised Premises for the operation of its corporate
offices, or (subject to Landlord’s prior written approval not to be unreasonably withheld, delayed
or conditioned) any other lawful purpose.

ARTICLE V

PAYMENT OF TAXES AND UTILITY CHARGES

     5.01 Taxes. Landlord shall pay all City and County real property taxes on the land
and building comprising the Limoneira Headquarters Building, including the Premises. Nothing
contained in this Lease shall require Tenant to reimburse Landlord for or pay for any franchise,
estate, inheritance, succession, capital levy or transfer tax of Landlord, or any income, excess
profits or revenue tax or any other tax, assessment, charge or levy upon the rent payable by Tenant
under this Lease. Tenant shall pay any and all taxes assessed or imposed, and which become payable
during the Lease term, upon Tenant’s fixtures, furniture, appliances and personal property located
or installed in the Premises, but not including any of the items listed on Exhibit B hereto
installed by Landlord for Tenant’s use.

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     5.02 Utility Charges. Landlord shall pay for all charges for electricity, water, gas
and other utility services used on the Premises during the term of this Lease and shall provide
janitorial services to the Premises comparable to those it provides for its own corporate offices.
Landlord shall also provide all maintenance for the Premises as set forth in Article VI hereof;
provided that such services shall not in any event be less than those customarily provided by
landlords of comparable leased space in Ventura County, California.

ARTICLE VI

SERVICES

     6.01 Landlord shall maintain the public and common areas of the Limoneira Headquarters
Building, including, without limitation, lobbies, stairs, elevators, corridors and restrooms,
windows, plumbing and electrical equipment, and the structure itself in reasonable good order and
condition except for damage occasioned by the act of Tenant, its employees, agents, contractors or
invitees, which damage shall be repaired by Landlord at Tenant’s expense to the extent such expense
is reasonable under the circumstances.

     6.02 Landlord shall furnish the Premises with (1) electricity for lighting and the operation
of customary office machines and equipment, (2) heat and air conditioning to the extent reasonably
required for the comfortable occupancy by Tenant in its use of the Premises, subject to any
applicable policies or regulations adopted by any utility or

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governmental agency, (3) water for drinking and lavatory purposes, (4) lighting replacement
(for building standard lights), (5) restroom supplies, (6) window washing with janitor service.
Landlord may establish reasonable measures to conserve energy, including but not limited to,
automatic switching off of lights after hours. Landlord shall not be in default hereunder or be
liable for any damages directly or indirectly resulting from, nor shall the rent herein reserved be
abated by reason of (i) the installation, use or interruption of use of any equipment in connection
with the furnishing of any of the foregoing services, except to the extent resulting from
Landlord’s gross negligence or willful misconduct, (ii) failure to furnish or delay in furnishing
any such services when such failure or delay is caused by accident or any condition beyond the
reasonable control of Landlord or by the making of repairs or improvements to the Premises or to
the Limoneira Headquarters Building, or (iii) the limitation, curtailment, rationing or
restrictions on use of water, electricity, gas or any other form of energy serving the Premises or
the Limoneira Headquarters Building imposed by any governmental authority.

     6.03 Whenever heat-generating equipment or lighting other than building standard lights are
used in the Premises by Tenant which affect the temperature otherwise maintained by the air
conditioning system, Landlord shall have the right, after notice to Tenant, to install
supplementary air conditioning facilities in the Premises or otherwise modify the ventilating and
air conditioning system serving the Premises, and the reasonable cost of such facilities and
modifications shall be borne by Tenant. Tenant shall also pay the cost of providing all cooling
energy to the Premises in excess of that

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required for normal office use or during hours requested by Tenant when air conditioning is
not otherwise furnished by Landlord. If there is installed in the Premises lighting requiring
power in excess of that required for normal office use in the Limoneira Headquarters Building or if
there is installed in the Premises equipment requiring power in excess of that required for normal
desk-top office equipment or normal copying equipment, Tenant shall pay for the cost of such excess
power, together with the reasonable cost of installing any additional risers or other facilities
that may be reasonably necessary to furnish such excess power to the Premises.

     6.04 In the event that Landlord, at Tenant’s request, provides services to Tenant that are not
otherwise provided for in this Lease, Tenant shall pay Landlord’s reasonable charges for such
services upon billing therefor.

     6.05 Landlord shall provide to Tenant, without charge, paved parking areas for use by Tenant’s
officers, directors, employees and invitees. Such parking will be in an asphalt paved parking
areas east of the Lemon Packing House. Landlord reserves the right to relocate such parking areas
from time to time, provided that such access shall at all times be reasonably proximate to the
Premises.

ARTICLE VII

INSURANCE BY TENANT – INDEMNITY

     7.01 Public Liability Insurance. Tenant agrees that, at its own cost and expense, it
shall procure and continue in force, in the name of Landlord and Tenant,

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general liability insurance against any and all claims for injuries to persons occurring in,
upon or about the Demised Premises. During the term of this Lease, such insurance shall be in an
amount not less than One Million Dollars ($1,000,000) for injury to or death of any one person in
one accident, and not less than Three Million Dollars ($3,000,000) for injuries to or death of all
persons in any one accident and to the limit of not less than Five Hundred Thousand Dollars
($500,000) in respect to property damage. Such policy shall name Landlord as an additional
insured.

     7.02 Tenant shall also procure at its costs and expense and keep in effect during the term of
this Lease insurance against damage by fire and other perils included within “all-risk” coverage
(but excluding earthquake, flood and acts of terrorism) in an amount not less than the full
replacement cost of all of the leasehold improvements in the Premises and Tenant’s trade fixtures,
furnishings and equipment in the Premises. A copy of each policy of insurance shall be delivered
to Landlord by Tenant prior to commencement of the term of this Lease and upon each renewal of such
insurance. In the event Tenant shall fail to procure such insurance, or to deliver to Landlord
such policies, Landlord may, at its option upon no less than five (5) days prior written notice
from Landlord, procure the same for the account of Tenant, and the cost thereof shall be paid to
Landlord within (5) days after delivery to Tenants of bills therefor. Each insurance policy
required to be maintained by Tenant under this Article VII shall provide that it is primary
insurance and not excess over or contributory with any other valid, existing and applicable
insurance in force for or on behalf of any of the parties required to be named as additional
insured thereunder, shall be issued by insurance companies

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licensed to do business in the State of California and otherwise reasonably acceptable to
Landlord, and shall provide that such insurance may not be cancelled or amended without thirty (30)
days’ prior written notice to Landlord

     7.03 Subrogation. Landlord and Tenant shall each obtain from its respective insurers
under all policies of fire insurance, and to the extent obtainable, theft, public liability,
workers’ compensation and other insurance maintained by either of them at any time during the term
hererof insuring or covering the Limoneira Headquarters Building or any portion thereof or
operations therein, a waiver of all rights of subrogation which the insurer of one party might have
against the other party, and Landlord and Tenant shall each indemnify the other against and
reimburse the other for any and all loss or expense, including reasonable attorney’s fees,
resulting from the failure to obtain such waiver.

     7.04 Indemnification. Tenant hereby waives all claims against Landlord for the theft,
loss or damage to any property, fixtures or improvements or injury of death of any person in, upon
or about the Premises arising at any time and from any cause other than to the extent arising by
reason of the gross negligence or willful misconduct of Landlord, its employees or contractors, and
Tenant shall indemnify, defend and hold Landlord harmless from any and all loss, cost, damage or
liability arising from the use or occupancy of the Premises or the Limoneira Headquarters Building
by Tenant or Tenant’s failure to perform its obligations under this Lease, except to the extent
such is caused by the gross negligence or willful misconduct of Landlord, its contractors or
employees. The foregoing indemnity obligation of Tenant shall include reasonable

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attorneys’ fees, investigation costs and all other reasonable costs and expense incurred by
Landlord from the first notice that injury, death or damage has occurred or that any claim or
demand is to be made or may be made. The provisions of this Article shall survive the termination
of this Lease.

ARTICLE VIII

REPAIRS, MAINTENANCE AND RECONSTRUCTION

     8.01 Except as hereinafter provided, Landlord during the entire term of this Lease and any
extension thereof, shall keep the entire Premises and all improvement therein, in good condition
and repair.

     8.02 Tenant shall not have the right, without the consent of Landlord, not to be unreasonably
withheld, delayed or conditioned, to make any alterations or additions to the Premises if the
reasonable expected cost thereof exceeds twenty-five thousand dollars ($25,000). Upon the
expiration of this Lease, any then existing alterations, additions and improvements made by Tenant
to or upon the Premises, except Tenant’s signs, shall become the property of Landlord.

     8.03 At the termination of this Lease, Tenant shall surrender the Premises to Landlord in good
condition and repair, subject only to the consequences and effect of reasonable wear and tear;
provided, however, that Tenant shall be under no obligation to repair or restore any portion of
said building or other improvements which may be damaged or destroyed by reason of fire,
earthquake, the elements or other casualty.

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     8.04 In the event the Limoneira Headquarters Building shall be damaged by fire, earthquake,
the elements or other casualty, the following provision shall apply: if the Limoneira Headquarters
Building shall be totally destroyed or partially destroyed from causes covered by insurance to an
extent exceeding twenty-five per cent (25%) of the then full replacement costs (excluding
foundations), and Landlord has not commenced the repair, reconstruction or restoration of the
building within sixty (60) days after the date of such destruction, either Tenant or Landlord shall
have the right to terminate this Lease by giving written notice of its election to terminate to the
other party within ninety (90) days, but not before sixty (60) days from the date of such
destruction. If neither party shall elect to terminate this Lease within such 90-day period,
Landlord shall promptly commence repair, reconstruction and restoration of said building and
prosecute the same diligently to completion, in which event this Lease shall continue in full force
and effect.

     8.05 Upon any termination of this Lease under any of the provisions of this Article VIII,
Tenant shall surrender possession of the Premises within sixty (60) days after receipt of such
written notice of termination, whereupon the parties shall be released thereby from any further
obligations to the other except for items which have theretofore accrued and are then unpaid, and
such termination shall be deemed to relate back to the date of destruction, provided that if the
Premises or any portion thereof shall be kept open for business after the date of destruction and
prior to the surrender of possession of the Premises, the termination date shall be the date that
Tenant shall discontinue the conduct of its business in the Premises. In the event of any
termination, as herein provided,

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Tenant shall forthwith surrender the Premises to Landlord, and upon such surrender Landlord
shall refund to Tenant any unearned rent paid by Tenant, calculated at a daily rate based on the
regular monthly rate and shall pay to Tenant and unexpired taxes and insurance premiums.

     8.06 In the event of repair, reconstruction and restoration under any of the conditions of
this Article VIII, Tenant shall not be entitled to any damages by reason of any inconveniences or
loss sustained by Tenant. During any such period of repair, reconstruction and restoration, all
rent paid in advance shall be apportioned, and the monthly rental thereafter accruing shall be
equitably and proportionately prorated and adjusted according to the nature, extent and duration of
the damage sustained and according to the suitability of the Premises for the use and occupancy of
Tenant in the conduct of its business, until the Premises shall have been repaired, reconstructed
or restored by Landlord. The full rental shall again become payable at such time after the
completion of such work of repair, reconstruction and restoration and when Tenant shall use the
restored part of the Premises in the carrying on of its business, or within thirty (30) days after
the completion of such work, whichever shall first occur.

ARTICLE IX

ENTRY BY LANDLORD

     9.01 Landlord may enter the Premises at reasonable hours to (a) inspect the same; (b) exhibit
the same to prospective purchasers, lenders or tenants, provided, however, that Landlord shall only
exhibit the Premises to prospective tenants during the

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final twelve (12) months of Tenant’s occupancy of the Premises; (c) determine whether Tenant
is complying with all its obligations hereunder; (d) supply janitor service and any other service
to be provided by Landlord to Tenant hereunder; (e) make repairs required of Landlord under the
terms hereof or repairs to any adjoining space or utility services or make repairs, alterations or
improvements to any other portion of the Building; provided that no entry by Landlord shall
unreasonably interfere with Tenant’s use or occupancy of the Premises. Tenant hereby waives any
claim for damages for any inconvenience to or interference with Tenant’s business or any loss of
occupancy or quiet enjoyment of the Premises occasioned by such entry, except to the extent that
such damages result from Landlord’s unreasonable interference with Tenant’s use or occupancy of the
Premises or Landlord’s gross negligence or willful misconduct Landlord shall at all time have and
retain a key with which to unlock all of the doors in, on or about the Premises (excluding Tenant’s
vaults, safes and similar areas designated in writing by Tenant in advance); and Landlord shall
have the right to use any and all means which Landlord may deem proper to open Tenant’s doors in
an emergency in order to obtain entry to the Premises, and any entry to the Premises obtained by
Landlord in an emergency shall not be construed or deemed to be a forcible or unlawful entry into
or a detainer of the Premises or an eviction, actual or contructive, of Tenant from the Premises or
any portion thereof.

ARTICLE X

EVENTS OF DEFAULT

     10.01 Default. The following events shall constitute Events of Default under this
Lease:

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          (a) Tenant’s failure to pay when due any rent or other sum payable hereunder and the
continuation of such failure for a period of fifteen (15) days after Tenant receives written notice
from Landlord that the same is due, provided that if Tenant has failed three or more times in any
twelve-month period to pay any rent or other sum within such fifteen (15) day period, such grace
period shall thereafter be reduced to three (3) days;

          (b) Tenant’s failure to perform any of the other terms, covenants, agreements or conditions
contained herein and, if the failure is curable, the continuation of such failure for a period of
thirty (30) days after notice by Landlord or beyond the time reasonably necessary for cure if the
failure is of a nature to require more than thirty (30) days to remedy, provided that if Tenant has
failed to perform the same obligation three or more times in any twelve-month period and notice of
such failure has been given by Landlord in each instance, no cure period shall thereafter be
applicable hereunder;

          (c) The bankruptcy or insolvency of Tenant, transfer by Tenant in fraud of creditors, an
assignment by Tenant for the benefit of creditors, or the commencement of any proceedings of any
kind by or against Tenant under any provision of the Federal Bankruptcy Act or under any other
insolvency, bankruptcy or reorganization act unless, in the event any such proceeding such
involuntary, Tenant is discharged from the same within ninety (90) days thereafter;

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          (d) the appointment of a receiver for all or a substantial part of the assets of Tenant;

          (e) the abandonment of the Premises; or

          (f) the levy upon Tenant’s interest in this Lease or any estate of Tenant hereunder by any
attachment or execution and the failure to have such attachment or execution vacated within thirty
(30) days thereafter.

ARTICLE XI

TERMINATION UPON DEFAULT

     11.01 In any notice given pursuant to Article X above, Landlord in its sole discretion may
elect to declare a forfeiture of this Lease as provided in Section 1161 of the California Code of
Civil Procedure, and provided that Landlord’s notice state such an election, Tenant’s right to
possession shall terminate and this Lease shall terminate, unless on or before the date specified
in such notice, all arrears of rent and all other sums payable by Tenant under this Lease and all
costs and expenses incurred by or on behalf of Landlord hereunder, including reasonable attorneys’
fees shall be paid by Tenant and all other breaches of this Lease by Tenant at the time existing
shall have been fully remedied to the satisfaction of Landlord. Upon such termination, Landlord
may, at its option and without any further notice or demand, in addition to any other rights and
remedies given hereunder or by law, exercise its remedies relating hereto in accordance with the
following provisions:

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          (i) In the event of any such termination of this Lease, Landlord may then or at any time
thereafter by judicial process, re-enter the Premises and remove therefrom all persons and property
and again repossess and enjoy the Premises, without prejudice to any other remedies that Landlord
may have by reason of Tenant’s default or of such termination.

          (ii) In the event of any such termination of this Lease, and in addition to any other rights
and remedies Landlord may have, Landlord shall have all of the rights and remedies of a landlord
provided by Section 1951.2 of the California Civil Code. The amount of damages which Landlord may
recover in event of such termination shall include, without limitation, (1) the worth at the time
of award (computed by discounting such amount a the discount rate of the Federal Reserve Bank of
San Francisco at the time of award plus one percent) of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of rental loss that Tenant proves
could be reasonable avoided, (2) all reasonable legal expenses and other related costs incurred by
Landlord following Tenant’s default, (3) all reasonable costs incurred by Landlord in restoring the
Premises to good order and condition, or in remodeling, and (4) all costs (including, without
limitation, any brokerage commissions) incurred by Landlord in reletting the Premises.

          (iii) After terminating this Lease, Landlord may remove any and all personal property of
Tenant located in the Premises and place such property in a public or private warehouse or
elsewhere at the sole cost and expense of Tenant. In the event that

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Tenant shall not immediately pay the cost of storage of such property after the same has been
stored for a period of thirty (30) days or more, Landlord may sell any or all thereof at a public
or private sale in such manner and such times and places as Landlord in its sole discretion may
deem proper, without notice to or demand upon Tenant. Tenant waives all claims for damages that
may be caused by Landlord’s removing or storing or selling the property as herein provided, and
Tenants shall indemnify and hold Landlord free and harmless from and against any and all losses,
costs and damages, including without limitation all costs of court and attorneys’ fees of Landlord
occasioned thereby, except for those arising by reason of Landlord’s gross negligence or willful
misconduct.

          11.02 In the event of the occurrence of any of the events specified in Section 10.01(c) of
this Lease, if Landlord shall not choose the exercise, or by law shall not be able to exercise, its
rights hereunder to terminate this Lease, then, in addition to any other rights of Landlord
hereunder or by law, (1) Landlord may discontinue the services provided pursuant to Article VI of
this Lease, unless Landlord has received compensation in advance for such services in the amount of
Landlords’ reasonable estimate of the compensation required with respect to such services, and (2)
neither Tenant, as debtor-in-possession, nor any trustee or other person (collectively, the
“Assuming Tenant”) shall be entitled to assume this Lease unless on or before the date of such
assumption, the Assuming Tenant (a) cures, or provides adequate assurance that the Assuming Tenants
will promptly cure, any existing default under this Lease, (b) compensates, or provides adequate
assurance that the Assuming Tenant will promptly compensate, Landlord for any pecuniary loss
(including, without limitation, attorneys’ fees and disbursement)

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resulting from such default, and (c) provides adequate assurance of future performance under
this Lease. For purposes of this Section 11.02, “adequate assurance” of such cure, compensation of
future performance shall be effected by the establishment of an escrow fund for the amount at
issue or by bonding.

ARTICLE XII

CONTINUATION AFTER DEFAULT

     12.01 If an Event of Default exists under this Lease and Tenant has abandoned the Premises,
Landlord shall also have the remedy described in California Civil Code Section 1951.4 (Landlord may
continue this Lease in effect after Tenant has breached this Lease and abandoned the Premises and
recover rent as it becomes due; provided, however that Tenants has the right to sublet or assign
this Lease, subject only to reasonable limitations). Acts of maintenance or preservation or
efforts to relet the Premises or the appointment of a receiver upon initiative of Landlord to
protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right
to possession.

     12.02 The remedies provided for in this Lease are in addition to any other remedies available
to Landlord at law or in equity by statute or otherwise.

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ARTICLE XIII

ASSIGNMENT AND SUBLEASE

     13.01 Tenants shall not have the right at any time to sublease, sublet or assign all or any
portion of the Premises or its interest in this Lease. Any such assignment or subleasing shall be
void unless Landlord shall first agree in writing to such assignment or subletting, which agreement
Landlord shall not unreasonably withhold, delay or condition.

ARTICLE XIV

ENCUMBRANCES BY LANDLORD

     14.01 Tenant agrees that, except as hereinafter provided with respect to Tenant’s right to
possession of the Premises, Tenant’s rights under this Lease are and shall always be subordinate to
the lien of any mortgage or trust deed now or hereafter placed from time to time upon the Limoneira
Headquarters Building of which the Premises are a part in favor of a bank, savings and loan
association, insurance company or other financial institution. Tenant shall, upon written demand
from Landlord, execute such other and further instruments or assurances subordinating this Lease to
the lien or liens of any such mortgage or mortgages or trust deeds except as hereinafter limited
with respect to Tenant’s right to possession. Tenant’s possession and right of use under this
Lease in and to the Premises shall not, however, be disturbed by any mortgagee, trustee under a
trust deed, owner or holder of a note secured by a mortgage or trust deed now existing or hereafter
placed on the Limoneira Headquarters Building unless and until Tenant shall breach any of the
provisions of this Lease and the Lease term or Tenant’s right to

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possession shall have been lawfully terminated in accordance with the provisions of this
Lease. If any mortgagee or trustee under a trust deed elects to have Tenant’s interest in this
Lease superior to any such interest by notice to Tenant, then this Lease shall be deemed superior
to any such mortgage or trust deed whether this Lease was executed before or after such mortgage or
trust deed.

ARTICLE XV

TERMINATION – ABATEMENT

     15.01 If, without Tenant’s fault, the operation on the Premises of the business then being
conducted on the Premises is substantially impaired or prevented for more than ninety (90) days by
the deprivation or limitation of any access thereto or therefrom, by any governmental taking or
action, Tenant may terminate this Lease by giving Landlord at least thirty (30) days’ written
notice; provided that, in the event of any such acquisition or taking, such notice may be given at
any time not later than ninety (90) days after physical possession of the Premises is taken or the
judgment in the condemnation proceeding becomes final, whichever occurs later; and if the taking is
total, the rent shall immediately abate, or if only partial, but is sufficient in Tenant’s
reasonable judgment to prevent or substantially impair operation of the business then located on
the Premises, the rent shall abate when physical possession of the Premises is taken. Neither the
existence nor exercise of any right under this Lease to terminate, nor any abatement of rent, shall
waive, limit or affect in any way Tenant’s rights, then accrued or thereafter to accrue, in any
proceeding, settlement or award for condemnation or for damages resulting from any other of the
events specified in this Article XV.

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ARTICLE XVI

EMINENT DOMAIN

     16.01 In the event the entire Premises shall be appropriated or taken under the power of
eminent domain by any public or quasi-public authority, this Lease shall terminate and expire as of
the date of such taking and the parties hereto shall thereupon be released from any liability
thereafter accruing hereunder.

     16.02 In the event more than ten percent (10%) of the ground floor area of the Premises is
taken under the power of eminent domain by any public or quasi-public authority, Tenant shall have
the right to terminate this Lease as of the date of such taking upon giving to Landlord notice, in
writing, of such election within thirty (30) days after such appropriation or taking. In the event
of such termination, both parties shall thereupon be released from any liability thereafter
accruing hereunder. Landlord agrees immediately after it received notice of the intention of any
such authority to appropriate or take to give to Tenant notice, in writing, thereof.

     16.03 This Lease is not terminated by Tenant in accordance with the foregoing provisions,
there shall be no abatement of rent and this Lease shall remain in full force and effect and
Landlord shall receive and retain any amount awarded as compensation for the taking of fixtures and
equipment owned by Landlord or for the expense of removing or repairing the same or for
improvements constructed by Landlord at its own cost.

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     16.04 If this Lease is terminated in the manner hereinabove provided, each party shall be
entitled to any award made to it in such proceedings, but the rent for the last month of Tenant’s
occupancy shall be prorated and Landlord agrees to refund to Tenant any rent paid in advance.

XVII

ATTORNEYS’ FEES

     17.01 If as a result of any breach or default in the performance of any of the provisions of
this Lease, Landlord uses the services of an attorney in order to secure compliance with such
provision or recover damages therefor, or to terminate this Lease or evict Tenants, Tenant shall
reimburse Landlord upon demand for any and all reasonable attorneys’ fees and expenses so incurred
by Landlord, provided that if Tenant shall be the prevailing party in any legal action brought by
Landlord against Tenant, Tenant shall be entitled to recover reasonable attorneys’ fees and
expenses incurred by Tenant.

ARTICLE XVIII

HOLDING OVER

     18.01 Any holding over after the expiration of the term of this Lease with the consent of
Landlord shall be deemed a tenancy from month-to-month at a rental equal to one hundred twenty
percent (120%) of the monthly rental being paid by Tenant as of the last month of the term of this
Lease. All other conditions and agreements of this Lease shall be applicable to such holding over.

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ARTICLE XIX

MISCELLANEOUS

     19.01 Notices. Whenever under this Lease a provision is made for any demand, notice
or declaration of any kind or where it is deemed desirable or necessary by either party to give or
serve any such notice, demand or declaration to the other, it shall be in writing sent by
registered or certified mail with postage prepaid, if to Tenant, addressed to Tenant at 1141 A
Cummings Road, Santa Paula, California 93060 and if to Landlord, addressed to Landlord at 1141
Cummings Road, Santa Paula, California 93060 and either party may, by like notice, at any time and
from time to time, designate a different address to which notices shall be sent. Such notices,
demands or declarations shall be deemed sufficiently served or given for all purposes hereunder at
the time they shall be mailed by United States registered or certified mail as aforesaid.

     19.02 Waiver. One or more waivers of any covenant, term or condition of this Lease by
either party shall not be construed by the other party as a waiver of a subsequent breach of the
same covenant, term or condition. The consent or approval of either party to or of any act by the
other party of a nature requiring consent or approval shall not be deemed to waiver or render
unnecessary consent to or approval of any subsequent similar act.

     19.03 Relationship of Parties. Nothing contained in this Lease shall be deemed or
construed by the parties hereto or by any third party to create the relationship of principal and
agent or of partnership or of joint venture or of any association whatsoever

22

 

between Landlord and Tenant, it being expressly understood and agreed that none of the
provisions contained in this Lease nor any act or acts of the parties hereto shall be deemed to
create any relationship between Landlord and Tenant other than the relationship of Landlord and
Tenant.

     19.04 Governing Laws. The laws of the State of California shall govern the validity,
performance and enforcement of this Lease.

     19.05 Savings Clause. The invalidity or unenforcibility of any provision of this
Lease shall not affect or impair the validity of any other provision.

     19.06 Margin Headings. The Paragraph titles herein are for convenience only and do
not define, limit or construe the contents of such Paragraph.

     19.07 Covenant to Bind Successors. It is agreed that the provisions, covenants and
conditions of this Lease shall be binding on the legal representatives, heirs, successors and
assigns of the respective parties hereto.

     19.08 Entire Agreement. This Lease and the Exhibits attached hereto and forming a
part hereof, set forth all of the covenants, promises, agreements, conditions and understandings
between Landlord and Tenant governing the Premises. There are no covenants, promises, agreements,
conditions and understandings, either oral or written, between them other than those herein set
forth. Except as herein provided, no subsequent

23

 

alterations, amendments, changes or additions to this Lease shall be binding upon Landlord or
Tenant unless and until reduced to writing and signed by both parties.

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

	 	 	 	 	 
	 	 	LANDLORD
	 
	 	 	 	 
	 	 	LIMONEIRA COMPANY
	 
	 	 	 	 
	

	 	By
	 	  /s/ Harold Edwards
	

	 	 	 	 
	 
	 	 	 	 
	

	 	By
	 	  /s/ Don Delmatoff
	

	 	 	 	 
	 
	 	 	 	 
	 	 	TENANT
	 
	 	 	 	 
	 	 	CALAVO GROWERS INC.
	 
	 	 	 	 
	

	 	By
	 	  /s/ Lecil Cole
	

	 	 	 	 
	 
	 	 	 	 
	

	 	By
	 	  /s/ Arthur Bruno
	

	 	 	 	 

24exv10w3

 

Exhibit 10.3

STANDSTILL AGREEMENT

     This STANDSTILL AGREEMENT, dated as of June 1, 2005 (this “AGREEMENT”), is entered into by and
among CALAVO GROWERS, INC., a California corporation (“CALAVO”), LIMONEIRA COMPANY, a Delaware
corporation (“LIMONEIRA”), and the other parties who are signatories below (“LIMONEIRA
AFFILIATIES”). Limoneira and the Limoneira Affiliates are sometimes referred to herein
individually as an “INVESTOR” and collectively, as the “INVESTORS”.

     WHEREAS, Calavo and Limoneira have entered into a Stock Purchase Agreement, dated June 1, 2005
(the “STOCK PURCHASE AGREEMENT”);

     WHEREAS, as a condition to the consummation of the transactions provided for in the Stock
Purchase Agreement, Calavo desires that the Investors make certain representations, warranties,
covenants and agreements as set forth in this Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein and in
the Stock Purchase Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

     1. Definitions. Capitalized terms used herein but not otherwise defined herein shall
have the meaning ascribed thereto in the Stock Purchase Agreement.

     2. Representations and Warranties of Each Investor. To induce Calavo to enter into
this Agreement and the Stock Purchase Agreement and to consummate the transactions contemplated
hereby and thereby, each Investor

1

 

represents and warrants (as to himself or itself only and not
with respect to any other Investor) to Calavo as follows:

          2.1 Binding Agreement. The execution, delivery and performance of this Agreement by
such Investor and the consummation by such Investor of the transactions contemplated hereby have
been duly and validly authorized by all necessary corporate or partnership action (if applicable)
on the part of such Investor. This Agreement has been duly executed and delivered by such
Investor, and, assuming the valid authorization, execution and delivery hereof by Calavo, is a
valid and binding obligation of such Investor, enforceable against such Investor in accordance with
its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium, and other similar laws affecting or relating to the enforcement of creditors’ rights
generally and by general principles of equity (whether applied in a proceeding at law or in
equity.)

          2.2 Execution; No Violations. The execution and delivery of this Agreement by such
Investor does not, and the consummation by such Investor of the transaction contemplated hereby
will not: (a) violate or conflict with any organizational documents of such Investor (if
applicable) or any agreement, order, injunction, decree, or judgment to which such Investor is a
party or by which such Investor is bound; or (b) violate any law, rule or regulation applicable to
such Investor.

          2.3 Governmental and Other Consents. No consent, approval or authorization of, or
designation, registration, declaration or filing with, any governmental entity or third Person is
required on the part of such Investor in connection with the execution or delivery of this
Agreement or the consummation by it of the transactions contemplated hereby.

2

 

          2.4 Share Ownership. Limoneira does not own directly or indirectly any voting
securities of Calavo, or any securities convertible into or exchangeable or exercisable for any
voting securities of Calavo, or which, upon redemption thereof could result in Limoneira or any of
its Affiliates receiving any voting securities of Calavo, or options, warrants, contractual rights
or other rights of any kind to acquire or vote any voting securities of Calavo (collectively, the
“VOTING SECURITIES”), except those
securities acquired pursuant to the Stock Purchase Agreement (the “CALAVO SHARES”).

     3. Standstill Arrangements.

          3.1 Acquisition of Additional Voting Securities. Limoneira hereby covenants and
agrees that prior to the Termination Date (as hereinafter defined), neither it nor any of its
Subsidiaries will, without the prior approval of the Board of Directors of Calavo, directly or
indirectly, purchase or otherwise acquire (other than pursuant to a stock split or stock dividend)
or make any proposal, other than a confidential proposal to the Board of Directors of Calavo, to or
agree to acquire, or become or agree to become the beneficial owner of, more than 12.6% of the
outstanding Voting Securities, other than (i) the Calavo Shares or (ii) any Voting Securities
issued as dividends on or otherwise issued in exchange or in consideration of or with respect to
the Calavo Shares (the “DIVIDEND SHARES”) or shares issued as dividends on the Dividend Shares or
in exchange for or in respect of the Dividend Shares.

          3.2 Prohibited Actions. Each Investor hereby agrees (as to himself or itself only and
not with respect to any other Investor) that, prior to the Termination Date, such Investor will
not, without the prior approval of the Board of Directors of Calavo, directly or indirectly ,
solicit, request, advise, assist or encourage others to, take any of the following actions:

3

 

               (a) form, join in or in any other way participate in a “partnership, limited partnership,
syndicate or other group” within the meaning of Section 13(d)(3) of the Exchange Act with respect
to Voting Securities or deposit any Voting Securities in a voting trust or similar arrangement or
subject any Voting Securities to any voting agreement or pooling arrangement, other than with one
or more Affiliates of such Investor with respect to the Calavo Shares;

               (b) solicit proxies or written consents of stockholders with respect to Voting Securities
under any circumstances, or make, or in any way participate
in, any “solicitation” of any “proxy” to vote any Voting Securities (other than a solicitation
conducted by Calavo), or become a “participant” in any election contest with respect to Calavo (as
such terms are defined or used in Rule 14a-1 under the Exchange Act) other than an election contest
related to election of members of the Board of Directors elected solely by the holders of the
Calavo Shares;

               (c) seek to call, or request the call of, a special meeting of the stockholders of Calavo
unless first presented to the Calavo Board of Directors or seek to make, or make, a stockholder
proposal at any meeting of the stockholders of Calavo that has not first been presented to the
Calavo Board of Directors;

               (d) commence, or announce any intention to commence, any tender offer for any Voting
Securities;

               (e) make, announce any intention or desire to make, or facilitate the making of, any proposal
(other than a confidential proposal to Calavo) or bid with respect to the acquisition of any
substantial portion of the assets of Calavo or of the assets or stock of any of its subsidiaries or
of all or any portion of the outstanding Voting Securities, or recapitalization or liquidation
involving Calavo or any of its subsidiaries;

               (f) knowingly arrange, or in any way knowingly participate in, any financing for any
transaction referred to in clauses 3(a) through 3(e) above; or

4

 

               (g) make any request, or otherwise seek (in any fashion that would require public disclosure
by Calavo, such Investor or their respective Affiliates) to obtain any waiver or amendment of any
provision of this Agreement or take any action restricted hereby.

     4. Termination. This Agreement shall terminate with respect to a particular Investor
on the date that such Investor and its Affiliates no longer own Voting Securities representing at
least 5% of the outstanding Voting Securities of Calavo (the “TERMINATION DATE”).

     5. Remedies. Each party hereto hereby acknowledges and agrees that irreparable harm
would occur in the event any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to specific performance hereunder, including,
without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions
of this Agreement and to enforce specifically the terms and provision hereof in any state or
federal court in the State of California, in addition to any other remedy to which they may be
entitled at law or in equity. Any requirements of the securing or posting of any bond with such
remedy are waived. All rights and remedies under this Agreement are cumulative, not exclusive, and
shall be in addition to all rights and remedies available to either party at law or in equity. No
party hereto shall be responsible for a breach by another party if the non-breaching party does not
participate in the breach.

     6. Jurisdiction; Venue. The parties hereto hereby irrevocably and unconditionally
consent to and submit to the jurisdiction of the courts of the State of California and of the
United States of America located in the State of California for any actions, suits or proceedings
arising out of or relating to this Agreement or the transactions contemplated hereby, and further
agree that service of any process, summons, notice or document by U.S. certified mail to the
respective

5

 

addresses set forth in Section 10 hereof shall be effective service of process for any
such action, suit or proceeding brought against any party in any such court. The parties
irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or
proceeding arising out of this Agreement, or the transactions contemplated hereby, in the courts of
the State of California of the United States of America located in the State of California, and
hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such
court that any such action, suit or proceeding brought in any such court has been brought in any
inconvenient forum.

     7. Entire Agreement. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and may be amended only by an agreement in writing
executed by the parties hereto.

     8. Headings. Descriptive headings are for convenience only and shall not control of
affect the meaning or construction of any provision of this Agreement.

     9. Number; Gender. Whenever the singular number is used herein, the same shall
include the plural where appropriate, and words or any gender shall include each other gender where
appropriate.

     10. Notices. All notices, consents, requests, instructions, approvals and other
communications provided for herein and all legal process in regard hereto shall be validly given,
made or served, if in writing and sent by U.S. certified mail, return receipt requested:

	 	 	 	 	 
	

	 	if to Limoneira:
	 	Limoneira Company
	

	 	 	 	1141 Cummings Road
	

	 	 	 	Santa Paula, CA 93060
	

	 	 	 	Attention: Harold S. Edwards, CEO
	 
	 	 	 	 
	

	 	with a copy to:
	 	Lawrence E. Stickney, Esq.

6

 

	 	 	 	 	 
	

	 	 	 	Walker, Wright, Tyler & Ward
	

	 	 	 	626 Wilshire Blvd., Suite 900
	

	 	 	 	Los Angeles, CA 90017
	 
	 	 	 	 
	

	 	if to Calavo:
	 	Calavo Growers, Inc.
	

	 	 	 	1141 A Cummings Road
	

	 	 	 	Santa Paula, CA 93060
	

	 	 	 	Attention: Lecil E. Cole, Chairman
	 
	 	 	 	 
	

	 	with a copy to:
	 	Marc L. Brown, Esq.
	

	 	 	 	Troy & Gould, APC
	

	 	 	 	1801 Century Park East
	

	 	 	 	Suite 1600
	

	 	 	 	Los Angeles, CA 90067

     11. Enforceability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated. It is hereby stipulated and
declared to be the intention of the parties that
the parties would have executed the remaining terms, provisions, covenants and restrictions
without including any of such which may be hereafter declared invalid, void or unenforceable. In
addition, the parties agree to use their best efforts to agree upon and substitute a valid and
enforceable term, provision, covenant or restriction for any of such that is held invalid, void or
unenforceable by a court of competent jurisdiction.

     12. Law Governing. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of California without regard to any conflict of laws
provisions thereof.

     13. Binding Effect; No Assignment. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the successors and assigns of the parties hereto. Nothing in
this Agreement, expressed or implied, is intended to confer on any Person other than the parties
hereto, or their respective heirs, successors, executors, administrators and assigns any rights,

7

 

remedies, obligations or liabilities under or by reason of this Agreement. No party to this
Agreement may assign its rights or delegate its obligations hereunder (whether voluntarily,
involuntarily, or by operation of law) without the prior written consent of the other parties. Any
such attempted assignment shall be null and void.

     14. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     15. Section Headings. The headings contained in this Agreement are for reference
purposes only and will not affect in any way the meaning or interpretation of this Agreement.

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

	 	 	 	 	 
	Calavo:	 	CALAVO GROWERS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Lecil E. Cole
	

	 	 	 	 
	

	 	 	 	     Name: Lecil E. Cole
	

	 	 	 	     Title: Chairman, President and CEO
	 
	 	 	 	 
	Limoneira:	 	LIMONEIRA COMPANY
	 
	 	 	 	 
	

	 	By:
	 	/s/ Harold S. Edwards
	

	 	 	 	 
	

	 	 	 	     Name: Harold S. Edwards
	

	 	 	 	     Title: President and CEO
	 
	 	 	 	 
	Limoneira Affiliates:

	 	 	 	     /s/ Harold S. Edwards
	 	 	 
	

	 	 	 	     Name: Harold S. Edwards
	 
	 	 	 	 
	

	 	 	 	     /s/ Alex M. Teague
	 	 	 
	

	 	 	 	     Name: Alex M. Teague

8

 

	 	 	 	 	 
	

	 	 	 	     /s/ G. Ronald Hendren
	 	 	 
	

	 	 	 	     Name: G. Ronald Hendren
	 
	 	 	 	 
	

	 	 	 	     /s/ Don P. Delmatoff
	 	 	 
	

	 	 	 	     Name: Don P. Delmatoff
	 
	 	 	 	 
	

	 	 	 	      /s/ Allan M. Pinkerton
	 	 	 
	

	 	 	 	     Name: Allan M. Pinkerton
	 
	 	 	 	 
	

	 	 	 	     /s/ John W. Blanchard
	 	 	 
	

	 	 	 	     Name: John W. Blanchard
	 
	 	 	 	 
	

	 	 	 	     /s/ Gordon E. Kimball
	 	 	 
	

	 	 	 	     Name: Gordon E. Kimball
	 
	 	 	 	 
	

	 	 	 	     /s/ Robert M. Sawyer
	 	 	 
	

	 	 	 	     Name: Robert M. Sawyer
	 
	 	 	 	 
	

	 	 	 	     /s/ Samuel R. Edwards
	 	 	 
	

	 	 	 	     Name: Samuel R. Edwards
	 
	 	 	 	 
	

	 	 	 	     /s/ Robert A. Proctor
	 	 	 
	

	 	 	 	     Name: Robert A. Proctor
	 
	 	 	 	 
	

	 	 	 	     /s/ Ronald L. Michaelis
	 	 	 
	

	 	 	 	     Name: Ronald L. Michaelis
	 
	 	 	 	 
	

	 	 	 	     /s/ Alan M. Teague
	 	 	 
	

	 	 	 	     Name: Alan M. Teague
	 
	 	 	 	 
	

	 	 	 	     /s/ John W.H. Merriman
	 	 	 
	

	 	 	 	     Name: John W.H. Merriman
	 
	 	 	 	 
	

	 	 	 	     /s/ John M. Dickenson
	 	 	 
	

	 	 	 	     Name: John M. Dickenson

9

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