First Amendment to Net Lease Agreement between AEI Income & Growth Fund 23 LLC, AEI Net Lease Income & Growth Fund XIX LP, and Kona Restaurant Group, Inc.

Summary

This amendment updates the original Net Lease Agreement between AEI Income & Growth Fund 23 LLC and AEI Net Lease Income & Growth Fund XIX LP (as Lessors) and Kona Restaurant Group, Inc. (as Lessee) for property in San Antonio, Texas. It revises the lease term to end on November 30, 2018, sets new annual rent amounts and payment schedules, and confirms that the Lessee has accepted and inspected the premises. Both parties affirm that all obligations have been met and there are no outstanding claims or defaults as of the amendment date.

EX-10.2 4 sacr1anl.txt FIRST AMENDMENT TO NET LEASE AGREEMENT THIS AMENDMENT TO NET LEASE AGREEMENT, made and entered into effective as of the 2nd day of November, 2001, by and between AEI Net Lease Income & Growth Fund XIX Limited Partnership ("Fund XIX"), whose corporate general partner is AEI Fund Management XIX, Inc., and AEI Income & Growth Fund 23 LLC ("Fund 23"), whose corporate general partner is AEI Fund Management XXI, Inc., whose address is 1300 Minnesota World Trade Center, 30 East Seventh Street, St. Paul, Minnesota 55101 ("Lessor")(fax #651 ###-###-####), and Kona Restaurant Group, Inc., a Delaware corporation, whose address is 3555 Ranch Road, 620 South, Austin, Texas 78734 ("Lessee") (fax # 512 ###-###-####); WITNESSETH: WHEREAS, Lessor is the fee owner of a certain parcel of real property and improvements located at San Antonio, Texas, and legally described in Exhibit "A", which is attached hereto and incorporated herein by reference, and shall substitute for the Exhibit A heretofore attached to the Lease (as defined below); and WHEREAS, Lessee has constructed the building and improvements (together the "Building") on the real property described in Exhibit "A", which Building is described in the plans and specifications heretofore submitted to Lessor; and WHEREAS, Lessee and Lessor have entered into that certain Net Lease Agreement dated February 2, 2001 (the "Lease") providing for the lease of said real property and Building (said real property and Building hereinafter referred to as the "Leased Premises"), from Lessor upon the terms and conditions therein provided in the Lease; NOW, THEREFORE, in consideration of the Rents, terms, covenants, conditions, and agreements hereinafter described to be paid, kept, and performed by Lessee, including the completion of the Building and other improvements constituting the Leased Premises, Lessee and Lessor do hereby agree to amend the Lease as follows: 1. Article 2(A) and (B) of the Lease shall henceforth read as follows: ARTICLE 2. TERM (A) The term of this Lease ("Term") shall be the period commencing February 2, 2001, ("Occupancy Date") through the effective date hereof, plus Seventeen (17) consecutive "Lease Years", as hereinafter defined, commencing on the effective date hereof, with the contemplated initial term hereof ending on November 30, 2018. (B) The first full Lease Year shall commence on the date of this First Amendment and continue through November 30, 2002. Each Lease Year after the first Lease Year shall be a successive period of twelve (l2) calendar months. 2. Article 4(A) of the Lease shall henceforth read as follows: ARTICLE 4. RENT PAYMENTS (A) Annual Rent Payable for the first and second Lease Year: Lessee shall pay to Lessor Fund 23 an annual Base Rent of $116,524.80, which amount shall be payable in advance on the first day of each month in equal monthly installments of $9,710.40 to Lessor Fund 23 and shall pay to Lessor Fund XIX an annual Base Rent of $126,235.20, which amount shall be payable in advance on the first day of each month in equal monthly installments of $10,519.60 to Lessor Fund XIX. If the first day of the Lease Term is not the first day of a calendar month, then the monthly Rent payable for that partial month shall be a prorated portion of the equal monthly installment of Base Rent. 3. Lessee has accepted delivery of the Leased Premises and has entered into occupancy thereof; 4. Lessee has fully inspected the Premises and found the same to be as required by the Lease, in good order and repair, and all conditions under the Lease to be performed by the Lessor have been satisfied; 5. As of this date, the Lessor is not in default under any of the terms, conditions, provisions or agreements of the Lease and the undersigned has no offsets, claims or defenses against the Lessor with respect to the Lease. 6. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. 7. The Lease does not contain an Exhibit B. IN WITNESS WHEREOF, Lessor and Lessee have respectively signed and sealed this Lease as of the day and year first above written. LESSEE: Kona Restaurant Group, Inc., By:/s/ Roy Turner Its:CFO LESSOR: AEI INCOME & GROWTH FUND 23 LLC By: AEI FUND MANAGEMENT XXI, INC., a Minnesota corporation By: /s/ Robert P Johnson Robert P. Johnson, President AEI NET LEASE INCOME & GROWTH FUND XIX LIMITED PARTNERSHIP By: AEI FUND MANAGEMENT XIX, INC., a Minnesota corporation By: /s/ Robert P Johnson Robert P. Johnson, President