THE BIGGEST LEASE AGREEMENT OF THE POLISH CHRISTMAS TREES INDUSTRY CONCLUDED AFTER LONG NEGOTIATIONS
After 5 months of tough negotiations, both in English and in Polish, the lease agreement of agricultural real properties together with the administration agreement of agricultural land were finally concluded between Nordpol Trees sp. z o.o. in Czaplin Mały (owned by the Danish company Bovipol Energy APS) and 4XMAS sp. z o.o. in Mosty (owned by two largest companies of the Polish Christmas trees industry) in front of the notary. In this transaction, that seem to be definitely the largest lease agreement of the Polish Christmas trees industry, I represented 4XMAS sp. z o.o. in Mosty, the Lessee, so the company that I freshly established.
The legal difficulties included among others:
- The fact, that trees were already planted on some fields by the landlord and on some were not;
- Different term of lease for different fields;
- The fact that Christmas trees may be cut at different age that may affect the length of the lease period, while the time of cutting is unknown yet (it will be subject of the future commercial agreements concluded by the lessee);
- The fact that after one planting period the lessee might be interested in the further lease of different parts of the subject of the lease, but that interest is not certain yet;
- The not updated land and mortgage register (its part III);
- The fact that the property is burdened with the mortgage in favor of the Danish bank to secure the carry out of the obligation of the third party;
- The fact that the property was partially and still will be the part of two other agreements relating to PV (photovoltaic) installation and wind farm which lessees’ rights had to be taken into consideration;
- The fact that although some parts of the land are subject of lease to third parties, the parties decided that some parts of the land are supposed to be subject of trees planting conditionally or unconditionally;
- The third parties rights to conditional lease of some parts of the land;
- The fact that under a part of the land the Baltic Pipe installation was laid (and that during the Baltic Pipe constructing the damages were made by the construction companies);
- The fact that the part of the property is developed with different kinds of buildings and constructions, while most of the land is not;
- The fact that due to (among others) the length of the lease period and planned intensive activities the land will be the subject of expenditure permanently related to the property;
- The fact that during the negotiations the trees had to be subject of someone’s care treatment;
- The fact that at the beginning of the negotiations the lessee was not registered in the commercial register;
- The fact that the agreement had to refer to the period when neither the lessee was registered nor even was established;
- The differences between the Danish and Polish legal systems;
- The differences between typical set of the lessee’s and landlord’s rights and obligations in Denmark and Poland in the Christmas trees industry;
- The fact that the end of negotiations coincided with the beginning of the Christmas trees season;
- Other matters that are subject of professional secrecy.
Finally the text of the lease agreement consisted of more than 50 pages plus attachments, which is many times more than it is observed in the Christmas trees industry.
Experience gained in many years of intensive handling of lease and rental agreements for T-Mobile (formerly Polska Telefonia Cyfrowa), good working knowledge of legal English, pro-business attitude and conciliatory nature have undoubtedly paid off. I am very pleased that the contract was signed and we wish our Client every business success.