EXHIBIT 10.3
MODIFICATION OF LEASE AGREEMENT
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This Modification of Lease Agreement is made and entered into this 31st day
of January, 2001, effective December 28, 2000 by and between Corporation Lex, a
Texas Corporation, whose address is 0000 Xxxxxxxxxx Xxxxxx, Xxxxxx, Xxxxx 00000
(hereinafter referred to as "Landlord") and MD II Entertainment, Inc., a Texas
Corporation, whose address is 0000 Xxxx Xxxxxxxxx Xxxxxxx, Xxxxxx, Xxxxx
(hereinafter referred to as "Tenant").
W I T N E S S E T H :
Whereas Tenant is an assignee of all rights of Xxxxxx Xxxxx, Inc. under
that certain lease date of the 25th day of May, 1990 between Landlord and Xxxxxx
Xxxxx, Inc., (herein referred to as "Lease Agreement") related to 0000 Xxxx
Xxxxxxxxx Xxxxxxx (herein referred to as "lease Premises").
Whereas City of Dallas has passed legislation making it illegal for the
use, a night-club featuring erotic female striptease provided for and
contemplated by the Lease Agreement to operate, and
Whereas pursuant to paragraph 39 of the Lease Agreement, Tenant has the
option to terminate the Lease Agreement in such a situation, and
Whereas the change of operations necessary to comply with the law,
substantial economic impact has befallen Tenant, and
Whereas Tenant (and X. Xxxxx, Inc.) notified Landlord of its desire to
exercise its option to terminate the Lease Agreement unless modification of
Lease Agreement could be reached and;
Whereas the parties negotiated this modification in good faith to prevent a
termination of the lease and allow its parties to obtain the mutual economic
benefit of the continued Landlord/Tenant relationship.
Therefore, in consideration of the mutual agreements set forth herein the
parties agree to modify the Lease Agreement as follows:
ARTICLE I
MODIFICATION TO XXXXXXXXX 0
Xxxxxxxxx Xx. 0, the "use" provision, is modified to read as follows:
"Tenant shall use the lease premises as a theater, restaurant or other
legal use featuring erotic female striptease provided Tenant shall not
operate same a s a sexually oriented business unless Tenant obtains a
license/exemption from the City of Dallas. If any government or
quasi-public authority regulates or licenses type of use, Tenant shall
comply with all such statutes, laws and regulations promulgated by any such
authority".
ARTICLE II
MODIFICATION TO PARAGRAPH 5
Paragraph No. 5 the "rental" provision is modified to read as follows:
"5(a) The "base" rental during the term of this lease shall be one-thousand
dollars ($1,000.00) per week beginning on December 28, 2000 and for each
weak thereafter, until the end of the lease or May 23, 2002. In addition to
the "base" rent, Tenants shall pay Landlord an additional rent in the
amount of ten percent (10%) of all "Gross Sales" (as hereinafter defined)
exceeding ten thousand ($10,000.00) per week starting with sales on
December 28, 2000. Tenant shall pay Landlord such percentage rent (if any)
within thirty (30) days of the end of each respective quarter and provide
an accounting of the calculation of same as set out hereinafter".
"5(b) The term "Gross Sales" as used herein shall mean the entire amount of
actual receipts (cash or otherwise) generated by tenant of the Lease
Premises, from all sales of food, beverage, gift certificates, or similar
vouchers, and including door/cover/admission charges and all other sales or
other charges made in the normal course of business required to be reported
in Texas sales tax returns and liquor tax returns provided, however the
term of the "Gross Sales" shall not include the amount of sales or liquor
tax paid on "Gross Sales" or amounts/fees collected for entertainment (i.e.
table dances). As used in this section "tenant" shall include any
subsidiary, Sub-Tenant, concessionaire, or license of any Tenant conducting
business at the least premises with Tenant's approval, but shall not
include valet services or entertainers and shall only include Tenant's
portion of the proceeds received from any unrelated vendor, concessionaire
or independent contractor".
"5(c) Within thirty (30) days following the end of each calendar quarter
during each Lease Year or Fractional Lease Year, Tenant shall furnish
Landlord a statement of "Gross Sales", along with copies of associated
state sales and liquor tax along with copies of associated state sales and
liquor tax returns ("Quarterly Report") made during the period covered by
such Quarterly Rent accompanied by the payment of all additional rent due
under paragraph 5(b), if any, for such quarter".
ARTICLE III
OTHER PROVISIONS UNAFFECTED
All other provisions of the Lease Agreement shall remain in full force and
effect except as those specifically modified herein.
Signed on this 31st day of January, 2001.
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Corporation Lex by MD II Entertainment Inc. by
Xxxx Xxxxxxx-Its President Xxxxx Xxxxx-Its Vice President
APPROVED:
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Xxxxxx Xxxxx, Inc. by
Xxxx XxXxxxxx-Its Vice President
