EXHIBIT 10.7
NET LEASE
THIS NET LEASE (this "Lease") is made as of June 21, 1999, by and between
Penobscot Land Company, a Michigan co-partnership, whose address is c/o Chateau
Management and Realty, Inc., Suite 305, 0000 Xxxxx Xxxxxxxx Xxxxxx, Xxxxxxxxxx
Xxxxx, Xxxxxxxx 00000-0000 ("Landlord"), and Asset Acceptance Corp., a Michigan
corporation, Xxx Acceptance Corp., a Michigan corporation, Financial Credit
Corp., a Michigan corporation, and City Financial Corp., a Michigan corporation,
jointly and severally, whose addresses for purposes of this Lease is 00000
Xxxxxx Xxxxxx, Xx. Xxxxx Xxxxxx, Xxxxxxxx 00000 (collectively, "Tenant").
SECTION 1: THE PREMISES
1.01 Landlord hereby leases to Tenant the real property located at 0000
Xxxxxx Xxxx, Xxxxxx, Xxxxxxxx 00000, more particularly described in
Exhibit "A" attached to and made an integral part of this Lease (the
"Land"), together with an industrial building and other improvements
constructed on the Land which total approximately 22,724 square feet
(the "Improvements") (the Land and the Improvements collectively will
constitute and be referred to in this Lease as the "Premises").
SECTION 2: THE TERM
2.01 The Term will commence (the "Commencement Date") on September 1, 1999
and shall terminate on the last day of the sixtieth (60th) full
calendar month following the Commencement Date (the "Termination
Date"), unless sooner terminated in accordance with this Lease.
Notwithstanding the foregoing, Landlord shall deliver possession of the
Premises to Tenant upon execution of this Lease by both Landlord and
Tenant.
2.02 Tenant shall have the right and option to extend the Term from the date
upon which it would otherwise terminate for one (1) renewal period of
five (5) years ("Renewal Period") upon the same terms and conditions as
set forth herein, by notifying Landlord in writing not less than ninety
(90) days prior to the expiration of the original Term. Notwithstanding
the foregoing, Tenant may not exercise or be entitled to extend the
Term if it is in default under the terms of this Lease as of the date
it exercises the renewal option or at the commencement of the Renewal
Period.
SECTION 3: BASE RENT
3.01 Subject to all of the terms of this Lease, Tenant agrees to pay to
Landlord, as minimum net rental for the original Term of this Lease, as
follows:
(a) from the first full calendar month through the thirty sixth
full calendar month, Tenant shall pay Landlord minimum net
rental of One Hundred Eighty One
Thousand Seven Hundred Ninety One and 96/100 Dollars
($181,791.96) per year in equal monthly installments of
Fifteen Thousand One Hundred Forty Nine and 33/100 Dollars
($15,149.33); and
(b) from the thirty seventh full calendar month through the
sixtieth full calendar month, Tenant shall pay Landlord
minimum net rent at the rate of Two Hundred Four Thousand Five
Hundred Sixteen and 00/100 Dollars ($204,516.00) per year in
equal monthly installments of Seventeen Thousand Forty Three
and 00/100 Dollars ($17,043.00).
(c) from the sixty first full calendar month through the
ninety-sixth full calendar month, Tenant shall pay Landlord
minimum net rent at a rate of Two Hundred Fifteen Thousand
Eight Hundred Seventy Seven and 96/100 Dollars ($215,877.96)
per year in equal monthly installments of Seventeen Thousand
Nine Hundred Eighty Nine and 83/100 Dollars ($17,989.83).
(d) from the ninety-seventh first full calendar month through the
one hundred and twentieth full calendar month, Tenant shall
pay Landlord minimum rent at a rate of Two Hundred Twenty
Seven Thousand Two Hundred Forty and 04/100 Dollars
($227,240.04) per year in equal monthly installments of
Eighteen Thousand Nine Hundred Thirty Six and 67/100 Dollars
($18,936.67).
3.02 Each monthly installment of minimum net rental will be paid in advance,
without any set-offs or deductions, on the first day of each and every
month (the "Rent Day") during the Term at the office of Landlord at the
address first shown above or at such other place as Landlord from time
to time may designate in writing.
3.03 Notwithstanding anything to the contrary set forth in this Lease,
Tenant shall make its first monthly payment of minimum net rent to
Landlord -upon execution of this Lease. No minimum net rent payment
shall be due from Tenant to Landlord on the Commencement Date. The next
payment of minimum net rent shall be due October 1, 1999.
SECTION 4: LATE CHARGES AND INTEREST
4.01 Any rent or other sums payable by Tenant to Landlord under this Lease
not paid within seven (7) days after the same is due shall incur a late
charge for reimbursement of Landlord's anticipated out-of-pocket
expenses due to such failure to pay of five percent (5%) of the amount
of such payment.
4.02 Any rent or other sums payable by Tenant to Landlord under this Lease,
not paid within seven (7) days after the same are due, will bear
interest at a per annum rate equal to the greater of twelve percent
(12%) or four (4) percentage points above the interest rate per annum
announced by Michigan National Bank, as its "prime rate" on the date
when the rent, late charges or other sums become due, but not in excess
of the maximum interest rate permitted by law. Such interest will be
due and payable as additional rent on or
2
before the next Rent Day or within ten (10) days of a written demand
therefor by Landlord, whichever occurs first, and will accrue from the
date that such rent, late charges or other sums first became due under
the provisions of this Lease until actually paid by Tenant.
4.03 Any default in the payment of rent or other sums will not be considered
cured unless and until the interest due hereunder is paid by Tenant to
Landlord. The obligation hereunder to pay interest will exist in
addition to and not in place of the other default provisions of this
Lease. Any money and other charges required to be paid by Tenant
pursuant to the terms of this Lease, whether or not the same may be
designated as rental shall be deemed rent and Tenant's failure to pay
such money or other charges required under this Lease shall carry with
it the same consequences (including the right to commence summary
proceedings), as a failure to pay rental.
4.04 In the event any charge imposed hereunder or under any of the Sections
of this Lease is either stated to be or is construed as interest, then
no such interest charge shall be calculated at a rate that is higher
than the maximum interest rate permitted by law, which maximum rate
shall be substituted for the rate in excess thereof.
SECTION 5: TAXES, ASSESSMENTS AND UTILITIES,
5.01 Tenant agrees to pay, as additional rent for the Premises, all taxes
and assessments, general and special, all water rates and all other
governmental impositions which may be levied on the Premises or any
part thereof, or on any building or improvements at any time situated
thereon during or pertaining to the Term and any extensions thereof
(collectively, "Impositions"). Impositions shall include, without
limitation:
(a) The amount of all taxes, assessments, fees, rates and charges,
excises, levies, license taxes and fees, permit fees,
inspection fees and other authorization fees and other
governmental charges, whether federal, state, county or
municipal, and whether they be by taxing districts or
authorities presently taxing the Premises or by others,
subsequently created or otherwise, which at any time during or
in respect of the term of this Lease may be levied or assessed
against, or before a lien upon or may be confirmed or imposed
on or in respect of, or payable with respect to (i) the
Premises or any portion thereof or the interest of Tenant or
Landlord therein or in respect thereof, (ii) the rentals and
other amounts payable by Tenant hereunder, (iii) this Lease or
the interests of Tenant or Landlord hereunder, (iv) the
possession, use, occupancy, maintenance or repair of the
Premises or any portion thereof, (v) gross receipts from the
Premises or any portion thereof, or (vi) the earnings arising
from the possession, use or occupancy of the Premises.
Notwithstanding the foregoing, Impositions shall not include
(i) any franchise tax or income tax, (ii) any excess profit
tax of Landlord determined on the basis of Landlord's general
income or revenues, unless as provided below such tax is in
substitution of another tax or assessment upon or against the
Premises, or (iii) Landlord's Michigan Single Business Tax or
any tax in
3
substitution thereof. In the event the United States, the City
of Xxxxxx, the County of Macomb, the State of Michigan, or
other political subdivision of any such governmental authority
having jurisdiction over the Premises imposes a tax,
assessment or surcharge of any kind or nature upon, against,
measured by or with respect to the rents payable by Tenant
under this Lease or the income of Landlord derived from this
Lease, or with respect to Landlord's ownership of the
Premises, by way of substitution for all or any part of the
tax assessments levied or assessed against the Premises or in
addition thereto, such substituted or additional tax,
assessment or surcharge shall to the extent of such
substitution be deemed an Imposition. Impositions shall not
include fines or penalties imposed upon the Landlord or the
Premises as a result of acts or omissions of parties other
than Tenant, its agents or contractors.
The property taxes and assessments for the first and last years of the
Term or any extension thereof will be prorated between Landlord and
Tenant so that Tenant will be responsible for any such tax or
assessment attributable to the period during which Tenant has
possession of the Premises. The so-called "due-date" method of
proration will be used, it being presumed that taxes and assessments
are payable in advance. Tenant shall pay the amount of real property
taxes at least thirty (30) days before they become delinquent. Tenant
shall submit to Landlord at least ten (10) days prior to the date such
taxes become delinquent, paid receipts evidencing payment of such
taxes. In addition to any right or remedy provided Landlord under this
Lease, Tenant shall pay any late payment fees or interest charges of
any taxing authority incurred as a result of Tenant's failure to pay
Impositions in accordance with this Lease.
5.02 From and after the date hereof, Tenant agrees to pay all charges made
against the Premises for gas, heat, electricity and all other utilities
applicable to Tenant's occupancy of the Premises.
SECTION 6: USE OF PREMISES
6.01 The Premises during the continuance of this Lease will be used and
occupied for general office use only and for no other purpose without
the prior written consent of Landlord. Tenant agrees that it will not
use or permit any person to use the Premises or any part thereof for
any use or purposes in violation of the laws of the United States, the
laws, ordinances or other regulations of the State and municipality in
which the Premises are located, or of any other lawful authorities.
During the Term or any extended term Tenant will keep the Premises and
every part thereof and all buildings at any time situated thereon in a
clean and wholesome condition and generally will comply with all lawful
health and policy regulations. All signs and advertising displayed in
and about the Premises will be such only as to advertise the business
carried on upon the Premises, and will be in accordance with all
applicable laws, rules, regulations and ordinances. No awning will be
installed or used on the exterior of the building unless approved in
writing by Landlord, which approval shall not be unreasonably withheld.
4
SECTION 7: INSURANCE
7.01 Tenant, at Tenant's expense, will obtain and maintain at all times
during the Term of this. Lease and any extensions thereof until
surrender of the Premises to Landlord, a primary policy of insurance
covering the Premises and providing the insurance protection described
in this Section 7. Tenant will retain in its possession the original
policy and all endorsements, renewal certificates and new policies, if
any, issued during the Term.
7.02 The liability coverage under the primary policy will name Landlord and
Landlord's mortgagee as additional insured parties, and will provide
comprehensive general public liability insurance, including blanket
contractual coverage, against claims for or arising out of bodily
injury, death or properly damage occurring in, on or about the Premises
or property in, on or about the streets, sidewalks or properties
adjacent to the Premises. The limits of coverage will be, initially, if
dual limits are provided, not less than Five Million and 00/100
($5,000,000.00) Dollars with respect to injury or death of a single
person, not less than Five Million and 00/100 ($5,000,000.00) Dollars
with respect to one occurrence, and not less than Two Million
($2,000,000.00) Dollars with respect to one occurrence of property
damage or, in the alternative, a single limit policy in the amount of
Five Million and 00/100 ($5,000,000.00) Dollars, and thereafter in such
reasonably appropriate increased amounts as may be determined by
Landlord or Landlord's mortgagee; provided, however, that the amount of
coverage will not be increased more frequently than at one (1) year
intervals. The policy will contain cross-liability endorsements.
7.03 The primary policy will insure the Improvements (as defined in Section
1.01 hereof) for full replacement cost against loss by fire with
standard extended risk coverage, vandalism, malicious mischief,
sprinkler leakage and all other risk perils. The named insureds will be
Landlord and Landlord's mortgagee, only.
7.04 The primary policy also will provide loss of rents coverage sufficient,
to cover the minimum net rental and all other charges which are the
obligation of Tenant under this Lease for a twelve (12) month period
from the date of any loss or casualty.
7.05 Tenant shall also obtain, at its own expense, a policy of "all risks"
insurance covering Tenant's personal property, trade fixtures and any
alterations or improvements made to the Premises by Tenant after the
Commencement Date. Such insurance shall be in an amount to cover one
hundred (100%) percent of such property.
7.06 The insurance policy or policies to be provided by Tenant hereunder
shall be issued by an insurance company or companies having an A.M.
Best Company rating of not less than "A". Each policy procured by
Tenant under this Section 7 must provide for at least thirty (30) days'
written notice to Landlord of any cancellation. Tenant will deliver to
Landlord certificates of insurance at least thirty (30) days prior to
the Commencement Date, together with receipts evidencing payment of the
premiums therefor, and Tenant will deliver to Landlord a copy of the
policy or policies promptly upon receipt. Tenant will deliver
certificates of renewal for such policies to Landlord at least thirty
(30),days prior to the expiration dates thereof, and Tenant will
deliver to Landlord a copy of the renewed
5
policy or policies promptly upon receipt. The insurance provided by
Tenant under this Section 7 may be in the form of a blanket insurance
policy covering other properties as well as the Premises; provided,
however, that any such policy or policies of blanket insurance (i) must
specify therein, or Tenant must furnish Landlord with a written
statement from the insurers under such policy or policies specifying,
the amount of the total insurance allocated to the Premises, which
amounts will not be less than the amounts required by subsection 7.02
hereof, and (ii) such amounts so specified must be sufficient to
prevent Landlord or Landlord's mortgagee from becoming a co-insurer
within the terms of the applicable policy or policies, and provided
further, however, that any such policy or policies of blanket insurance
must, as to the Premises, otherwise comply as to endorsements and
coverage with the other provisions of this Section 7.
7.07 Except with respect to the insurance required by subsection 7.02,
neither Landlord nor Tenant may take out separate insurance concurrent
in form or contributing in the event of loss with that required under
this Section 7 unless Landlord and Tenant are included therein as the
insured payable as provided in this Lease. Each party will notify the
other immediately of the placing of any such separate insurance.
7.08 If Tenant fails to provide all or any of the insurance required to be
obtained by Tenant under this Section 7, or subsequently fails to
maintain such insurance in accordance with the requirements of this
Section, Landlord may (but will not be required to) procure or renew
such insurance, and any amounts paid by Landlord for such insurance
will be additional rental due and payable on or before the next Rent
Day, together with late charges and interest as provided in Section 4.
7.09 In the event of loss under any policy or policies provided by Tenant to
Landlord under this Section 7, other than the liability policy required
by subsection 7.2 and the insurance covering the personal property
required by Subsection 7.05, the insurance proceeds will be payable to
Landlord or Landlord's mortgagee; thereafter, such proceeds, with the
exception of the loss of rents insurance proceeds, will be used for the
expense of repairing or rebuilding- the Improvements which have been
damaged or destroyed if Landlord in its sole discretion and its
mortgagee are satisfied that the amount of insurance proceeds are and
will be at all times sufficient to pay for the completion of the
repairs or rebuilding, and Landlord's mortgagee otherwise makes the
proceeds available for repairing and restoring. If Landlord or
Landlord's mortgagee elect not to repair or restore the Improvements,
then this Lease shall terminate effective as of the date of such
casualty.
7.10 If Landlord's mortgagee under any first mortgage on the Premises at any
time requires, pursuant to the terms of the mortgage, that payment of
insurance premiums be made from an escrowed fund, then Landlord will so
notify Tenant, in writing. In such event, Tenant will not directly pay
the insurance premiums, but instead will pay to Landlord, as additional
rent, the amounts which Landlord must pay into the escrowed fund on
account of such premiums. If the actual premiums, when due, exceed the
total payments from time to time made by Tenant under the previous
sentence, then Tenant upon demand will pay any deficiency to Landlord.
If the payments made by Tenant under this subsection over the Term
exceed the amount of premiums paid from such fund, Landlord will refund
6
the excess to Tenant at the expiration of the Term, or at the time such
excess is refunded by the mortgagee to Landlord, whichever occurs
first.
SECTION 8: DAMAGE BY FIRE OR OTHER CASUALTY
8.01 It is understood and agreed that if the Premises are damaged or
destroyed in whole or in part by fire or other casualty during the
Term, then, if (a) in Landlord's judgment there are sufficient
insurance proceeds available to Landlord to pay for completion of any
required repairs, (b) there are at least twenty four (24) months
remaining in the Term, and (c) the repairs can be completed within 150
days, Landlord, will repair and restore the same to good tenantable
condition with reasonable dispatch.
8.02 Tenant will have the option, exercisable by written notice to Landlord
upon restoration of the Premises, to extend the original Term of this
Lease for a period equal to the period, if any, during which Tenant was
deprived of the use of all or a significant portion of the Premises by
reason of such damage or destruction. Tenant's option must be exercised
within sixty (60) days following completion of the restoration and
repair work.
8.03 If the Premises become untenantable as a result of any damage or
destruction to the Premises caused by fire or other casualty, then
Tenant will be allowed an abatement of all minimum net rent required to
be paid hereunder; provided, however that Tenant's obligation to pay
minimum net rent shall recommence as soon as Landlord substantially
completes all required repairs to the Improvements. In an event of a
casualty rendering a portion of the Premises untenantable, Tenant shall
be entitled to an equitable abatement of minimum net rent until such
time as the Premises become tenantable.
SECTION 9: REPAIRS
9.01 Landlord shall keep and maintain the roof and exterior walls of the
buildings presently located on the Premises exclusive of doors, door
frames, door checks, windows, and exclusive of window frames located in
exterior building walls, in good condition and repair, reasonable wear
and tear and loss or damage due to the act or negligence of Tenant, its
agents, employees, invitees, licensees, or contractors excepted.
Landlord's repairs shall be made within a reasonable time (depending on
the nature of the repair) after receiving notice or having actual
knowledge of the need for such repair. Landlord shall not be obligated
to make any other improvements or repairs of any kind or nature upon
the Premises. Without limiting the generality of the foregoing,
Landlord has made no promise to Tenant to alter, remodel, improve,
repair, decorate or clean the Premises or any part thereof and no
representations respecting the condition of the Premises have been made
to Tenant by or on behalf of Landlord except to the extent expressly
set forth in this Lease and Tenant hereby acknowledges that Tenant has
inspected the Premises and accepts the Premises "AS IS."
Notwithstanding the foregoing, prior to the Commencement Date, Landlord
shall repair the heating, ventilating and air conditioning unit so that
it is in good working order, at Landlord's sole cost and expense.
7
9.02 Except as expressly provided in Section 9.01, Tenant shall, from and
after the date hereof, maintain the Premises in good condition and
repair except for normal wear and tear and casualty damage (including
replacement of parts and equipment, if necessary) and any and all
appurtenances thereto where ever located, including, but without
limitation, the exterior and interior portion of all doors, door
checks, windows, plate glass, all plumbing and sewage facilities within
the Premises, including free flow to the main sewer line, grease traps,
hair traps, fixtures, heating and air conditioning and electrical
systems, sprinkler systems, walls, floors and ceilings. The plumbing
and sewage facilities serving the Premises shall not be used for any
purpose other than for which they are constructed, nor shall Tenant
introduce any matter therein which results in blocking such facilities.
Tenant shall also pay all other expenses in connection with the
maintenance of the Premises, including repair and upkeep of grounds,
sidewalks, driveways and parking areas in accordance with the standard
required under this Section 9.02.
9.03 Notwithstanding anything to the contrary set forth in this Lease, prior
to the Commencement Date, Tenant shall have the parking areas and
driveways repaired, seal coated and stripped by a contractor approved
by Landlord. Upon completion thereof, Tenant shall submit an itemized
xxxx from the contractor to Landlord and Landlord shall reimburse
Tenant for one-half (1 /2) of the cost for such work up to a maximum of
Five Thousand Dollars ($5,000.00).
SECTION 10: PAYMENT FOR SERVICES RENDERED BY LANDLORD
10.01 If Landlord at any time (i) does any work or performs any service in
connection with the Premises, or (ii) supplies any materials to the
Premises and the cost of the services, work or materials is Tenant's
responsibility under the provisions of this Lease, Landlord will
invoice Tenant for the cost, payable within fifteen (15) days after
delivery of the invoice. This Section will apply to any such work,
services or materials whether furnished at Tenant's request or on its
behalf and whether furnished or caused to be furnished by Landlord or
its agents, employees or contractors. Landlord shall provide not less
than five (5) days prior written notice of any work which Landlord
intends to perform under this Section; provided, however that no prior
written notice shall be required if Landlord believes in good faith an
emergency situation exists or Tenant is in default hereunder beyond any
applicable grace period. All amounts payable under this Section will be
additional rental and failure by Tenant to pay them when due will be a
default under this Lease and further will result in the assessment of
late charges and interest under Section 4.
SECTION 11: ALTERATIONS
11.01 The parties agree that Tenant will not make any alterations, additions
or improvements to the Premises without the written consent of
Landlord, which consent shall not be unreasonably withheld, conditioned
or delayed with respect to non-structural alterations,
8
additions or improvements. Landlord may withhold its consent in its
sole discretion with respect to structural alterations, additions or
improvements. All alterations, additions or improvements made by either
of the parties hereto on the Premises will be the property of Landlord
and will remain on and be surrendered with the Premises at the
termination of this Lease. Alterations, additions or improvements made
by Tenant shall not be required to be removed and the Premises restored
by Tenant unless Landlord expressly conditions its approval of such
alterations, additions or improvements on the removal thereof by Tenant
at the termination of the Term. All such alterations, additions and
improvements shall be (a) subject to reasonable conditions specified by
Landlord, (b) in accordance with all applicable laws, rules,
regulations and ordinances, (c) performed by licensed trade people, and
(d) performed in a good workmanlike and diligent manner. Tenant shall
obtain building permits) for all alterations, additions and
improvements on the Premises. Any request by Tenant to make any
alteration, addition or improvement under this Section shall be
reasonably detailed.
SECTION 12: LIENS
12.01 Any construction liens filed against the Premises for work claimed to
have been done or materials claimed to have been furnished to Tenant
shall be discharged by Tenant within thirty (30) days thereafter. For
purposes hereof, the bonding of such lien by a reputable casualty
insurance company reasonable satisfactory to Landlord shall be deemed
the equivalent of a discharge of any such lien. Should any action,
suit, or proceeding be brought upon any such lien for the enforcement
or foreclosure of the same, Tenant shall indemnify, defend and hold
Landlord harmless from and with respect to any such claims, damages,
losses or expenses (including reasonable attorneys' fees) which
Landlord may incur arising out of the existence or attempted
enforcement of any such liens.
SECTION 13: EMINENT DOMAIN
13.01 In the event that during the Term proceedings are instituted under the
power of eminent domain which result in the taking of any part of the
building on the Premises or the taking of a portion of the parking
area, and Tenant's business is significantly and adversely affected,
resulting in an eviction total or partial of Tenant therefrom, then at
the time of such eviction this Lease will be void and the Term will
cease and terminate; and, if Tenant thereafter continues in possession
of the Premises or any part thereof, it will be a lease from month to
month and for no longer term, anything in this instrument to the
contrary notwithstanding. If there is only a partial taking, not
including a portion of the building or reducing parking to the extent
described in the previous sentence, Landlord will restore the Premises
to the extent necessary to permit Tenant to continue its use of the
Premises; provided further that the whole of any award for any portion
of the Premises taken by reason of said condemnation proceedings will
be solely the property of and payable to Landlord, and provided further
that the whole of any award for loss of business and for removal and
relocation expenses in any such condemnation proceedings will be the
sole property of and be payable to Tenant. It is further agreed that in
any such
9
condemnation proceedings Landlord and Tenant will each seek its own
award and do so at its own expense.
SECTION 14: ASSIGNMENT OR SUBLETTING
14.01 Tenant agrees not to assign or in any manner transfer this Lease or any
interest in this Lease without the previous written consent of
Landlord, and not to sublet the entire Premises or allow anyone to use
or to come in with, through or under it without like consent, which
consent will not be withheld unreasonably if the proposed subtenant's
or assignee's proposed use of the Premises does not violate the use
clause of this Lease. In no event may Tenant assign or otherwise
transfer this Lease or any interest in this Lease at any time while in
default hereunder. One such consent will not be deemed a consent to any
subsequent assignment, subletting, occupation or use by any other
person.
Notwithstanding the foregoing, Tenant may, however, assign this Lease
after ten (10) days written notice to Landlord (but without Landlord's
consent) to a corporation with which it may merge or consolidate, to
any parent or subsidiary of Tenant or subsidiary of Tenant's parent, or
to the purchaser of substantially all of Tenant's assets if the
assignee executes an agreement reasonably acceptable to Landlord
assuming Tenant's obligations hereunder and agrees to pay Landlord's
reasonable attorneys' fees in reviewing and/or approving any such
proposed assignment.
The acceptance of rent from an assignee, subtenant or occupant will not
release Tenant from or alter the primary liability of Tenant to perform
the obligations of Tenant contained in this Lease. In the event of any
assignment or sublease of all of the Premises where the rental or other
consideration reserved in the sublease or by the assignment exceeds the
rental or pro rata portion of the rental, as the case may be, for such
space reserved in this Lease, Tenant agrees to pay Landlord monthly, as
additional rent, on the Rent Day, the excess of the rental or other
consideration reserved in the sublease or assignment over the rental
reserved in this Lease applicable to the subleased/assigned space.
Tenant acknowledges that Landlord selected Tenant in part on the basis
of Tenant's proposed use and occupation of the Premises and agrees that
Landlord may withhold consent to any proposed sublease or assignment if
the subtenant's or assignee's proposed use of the Premises would
violate the use clause of this Lease.
SECTION 15: INSPECTION OF PREMISES
15.01 Tenant agrees to permit Landlord and the authorized representatives of
Landlord to enter the Premises at all reasonable times during business
hours for the purpose of inspecting the same.
10
SECTION 16: FIXTURES AND EQUIPMENT
16.01 All fixtures and equipment paid for by Landlord and all fixtures and
equipment which may be paid for and placed on the Premises by Tenant
from time to time, but which are so incorporated and affixed to
Improvements that their removal would involve damage or structural
change to Improvements, will be and remain the property of Landlord.
16.02 All furnishings, equipment and fixtures, other than those specified in
Section 16.01, which are paid for and placed on the Premises by Tenant
from time to time (other than those which are replacements for fixtures
originally paid for by Landlord) will remain the property of Tenant.
SECTION 17: NOTICE OR DEMANDS
17.01 All bills, notices, statements, communications to or demands
(collectively, "Notices or Demands") upon Landlord or Tenant, desired
or required to be given under any of the provisions hereof, must be in
writing. Any such Notices or Demands will be deemed to have been duly
and sufficiently given if (a) a properly addressed copy thereof has
been mailed by United States mail in an envelope properly stamped arid
addressed, (b) by means of a reputable overnight delivery service
guaranteeing next day delivery ("Overnight Courier"), or (c) personally
delivered at:
If to Landlord: Penobscot Land Company
X/x Xxxxxxx Xxxxxxxxxx xxx Xxxxxx, Xxx.
Xxxxx 000
2050 North Xxxxxxxx Avenue
Bloomfield Hills, Michigan 48034-2260
Attn: Xxxxxx X. Xxxxxx
If to Tenant: Asset Acceptance Corp.
Xxx Acceptance Corp.
Financial Credit Corp.
City Financial Corp.
00000 Xxxxxx Xxxxxx
Xx. Xxxxx Xxxxxx, Xxxxxxxx 00000
Attn: Xxxx X. Xxxxxx, CPA/Vice President
of Finance
If to Tenant after Asset Acceptance Corp.
the Commencement Xxx Acceptance Corp.
Date: Financial Credit Corp.
City Financial Corp.
0000 Xxxxxx Xxxx
Xxxxxx, Xxxxxxxx 00000
Attn: Xxxx X. Xxxxxx, CPA/Vice President
11
of Finance
or at such other address as either Landlord or Tenant may have last
furnished in writing to the other for such purpose. Except where
receipt of notice is expressly required in this Lease, the effective
date of such Notice or Demand will be deemed to be the time when
personally delivered or mailed (either by United States Mail or
Overnight Courier) as herein provided.
SECTION 18: BREACH; INSOLVENCY; REENTRY
18.01 (a) In the event Tenant shall fail to pay the rent reserved herein
when due, and Tenant shall fail to cure such default within
ten (10) days, Landlord shall, in addition to its other
remedies provided by law, have the remedies set forth in
Section 18.01(c) hereof.
(b) If Tenant shall be in default in performing any of the terms
of this Lease other than the payment of rent, Landlord shall
give Tenant written notice of such default, and if Tenant
shall fail to cure such default within thirty (30) days after
the receipt of such notice, or if the default is of such a
character as to require more than thirty (30) days to cure,
then if Tenant shall fail, within said thirty (30) day period,
to commence and thereafter proceed diligently to cure such
default within such additional reasonable period of time (not
exceeding 90 days in total), then and in either of such event,
Landlord may (at its option and in addition to its other legal
remedies) cure such default for the account of Tenant, and any
sum so expended by Landlord plus interest shall be additional
rent for all purposes hereunder, including Section 18.01 (a)
hereof, and shall be paid by Tenant with the next monthly
installment of rent or within ten (10) days of a written
demand therefor by Landlord.
(c) If any rent shall be due and unpaid or Tenant shall be in
default upon any of the other terms of this Lease, and such
default has not been cured within the time provided in Section
18.01 (a) and (b) hereof, then Landlord, in addition to its
other remedies, shall have the immediate right of re-entry.
Should Landlord re-enter or take possession pursuant to legal
proceedings or any notice provided for by law, Landlord may
either terminate this Lease, or, from time to time, without
terminating this Lease, relet the Premises or any part thereof
on such terms and conditions as Landlord shall in its
reasonable discretion deem advisable. The avails of such
reletting shall be applied: first, to the payment of any
indebtedness of Tenant to Landlord other than rent due
hereunder; second, to the payment of any costs of such
reletting, including the cost of any repairs to the Premises;
third, to the payment of rent due and unpaid hereunder; and
the residue, if any, shall be held by Landlord and applied in
payment of future rent as the same may become due and payable
hereunder. Should the avails of such reletting during any
month be less than the monthly rent reserved hereunder, then
Tenant shall during each such month pay such deficiency to
Landlord.
12
Notwithstanding the foregoing, in lieu of the foregoing
computation, Landlord may elect, at its sole option, to
receive liquidated damages in one payment equal to any
deficiency between (i) the total rent reserved hereunder
through the balance of the Lease term, and (ii) the fair and
reasonable rental value of the Premises during such period,
both discounted at the rate of interest then announced by
Michigan National Bank, as its "prime rate" plus two percent
(2%), to present value at the time of declaration of
forfeiture.
18.02 (a) Neither Tenant's interest in this Lease, nor any estate hereby
created in Tenant, nor any interest herein or therein, shall
pass to any trustee or receiver or assignee for the benefit of
creditors or otherwise by operation of law, except as may
specifically be provided pursuant to the Bankruptcy Code.
(b) In the event the interest or estate created in Tenant hereby
shall be taken in execution or by the process of law, or if
Tenant's assigns, if any, shall be adjudicated insolvent or
bankrupt pursuant to the provisions of any State Act or the
Bankruptcy Code, or if Tenant is adjudicated insolvent by a
court of competent jurisdiction, other than the United States
Bankruptcy Court, or if a receiver or trustee of the property
of Tenant be appointed by reason of the insolvency or
inability of Tenant to pay its debts, or if any assignment
shall be made of the property of Tenant for the benefit of
creditors, then and in any such event, this Lease and all
rights of Tenant hereunder shall automatically cease and
terminate with the same force and effect as though the date of
such event were the date originally set forth herein and fixed
for the expiration of the Term, and Tenant shall vacate and
surrender the Premises but shall remain liable as herein
provided.
(c) Tenant shall not cause or give cause for the appointment of a
trustee or receiver of the assets of Tenant and shall not make
any assignment for the benefit of creditors, or become or be
adjudicated insolvent. The allowance of any petition under any
insolvency law except under the Bankruptcy Code or the
appointment of a trustee or receiver of Tenant or of the
assets of Tenant, shall be conclusive evidence that Tenant
caused, or gave cause therefor, unless such allowance of the
petition, or the appointment of a trustee or receiver, is
vacated within ninety (90) days after such allowance or
appointment. Any act described in this Section 18.02(c) shall
be deemed a material breach of Tenant's obligations hereunder,
and this Lease shall thereupon automatically terminate.
Landlord does, in addition, reserve any and all other remedies
provided in this Lease or in law.
(d) Upon the filing of a petition by or against Tenant under the
Bankruptcy Code, Tenant, as debtor and as debtor in
possession, and any trustee who may be appointed agree as
follows: (i) to perform each and every obligation of Tenant
under this Lease, including, but not limited to, the use as
provided in Section 6 hereof, until such time as this Lease is
either rejected or assumed by order of the United States
Bankruptcy Court; and (ii) to pay monthly in advance on the
first day of each month as reasonable compensation for use and
occupancy of the Premises an amount equal to all Base Rent and
other charges otherwise due
13
pursuant to this Lease and (iii) to reject or assume this
Lease within sixty (60) days of the filing of such petition
under Chapter VII of the Bankruptcy Code or within sixty (60)
days of the filing of a petition under any other Chapter; and
(iv) to give Landlord at least forty-five (45) days' prior
written notice of any proceeding relating to any assumption of
this Lease; and (v) to give at least thirty (30) days' prior
written notice of any abandonment of the Premises; any such
abandonment to be deemed a rejection of this Lease.
(e) No default of this Lease by Tenant, either prior to or
subsequent to the filing of such a petition, shall be deemed
to have been waived unless expressly done so in writing by
Landlord.
SECTION 19: SURRENDER OF PREMISES ON TERMINATION
19.01 At the expiration (or earlier termination) of the Term, Tenant will
surrender the Premises broom-clean and in as good condition and repair
except for normal wear and tear and casualty damage, and promptly upon
surrender will deliver all keys and building security cards for the
Premises to Landlord at the place then fixed for payment of rent. All
costs and expenses incurred by Landlord in connection with repairing or
restoring the Premises to the condition called for herein, together
with the costs, if any, of removing from the Premises any property of
Tenant left therein, shall be invoiced to Tenant and shall be payable
as additional rental within ten (10) days after receipt of invoice.
SECTION 20: PERFORMANCE BY LANDLORD OF THE COVENANTS OF TENANT
20.01 Should Tenant at any time fail to do any of the things required to be
done by it under the provisions of this Lease within thirty (30) days
of a written demand therefor (except in emergency situations, in which
case Landlord shall endeavor to provide telephone notice), then
Landlord in such event may (but will not be required to) do the same or
cause the same to be done, and the amount of any money expended by
Landlord in connection therewith will be due from Tenant to Landlord as
additional rent on or before the next Rent Day, bearing interest at the
rate set forth in Section 4.02 from the date of payment until the
repayment thereof to Landlord by Tenant. On default in such payment,
Landlord will have the same remedies as on default in payment of rent.
SECTION 21: SUBORDINATION; ESTOPPEL CERTIFICATES
21.01 Tenant agrees that Landlord may choose to make this Lease subordinate
or paramount to any mortgages or trust deeds now or hereafter affecting
the Premises, and to any and all advances to be made thereunder, and to
the interest and charges thereon, and all renewals, replacements and
extensions thereon, provided the mortgagee or trustee named in any such
mortgages or trust deeds agrees to recognize and not disturb the lease
of Tenant in
14
the event of foreclosure if Tenant is not in default beyond any
applicable cure period allowed under this Lease. Tenant will execute
promptly any instrument or certificate that Landlord may reasonably
request to confirm such subordination. Landlord agrees to exercise its
best efforts to cause the holder of any mortgage affecting the Premises
to enter into a subordination non-disturbance and attornment agreement
with Tenant on the form customarily required by such holder.
21.02 Tenant, within fifteen (15) days after request (at anytime or times) by
Landlord, will execute and deliver to Landlord an estoppel certificate
identifying the Commencement Date and expiration date of the Term and
stating that this Lease is unmodified and in full force and effect or
is in full force and effect as modified, stating the modifications and
stating that Tenant does not claim that Landlord is in default in any
way or listing any such claimed defaults. The certificate also will
confirm the amount of monthly minimum net rental as of the date of the
certificate, the date to which the rent has been paid in advance and
the amount of any security deposit or prepaid rent. If Tenant fails to
deliver the executed certificate to Landlord within the fifteen (15)
day period, the accuracy of the proposed certificate will be deemed
conclusively confirmed.
SECTION 22: QUIET ENJOYMENT
22.01 Landlord agrees that at all times when Tenant is not in default (beyond
any applicable cure period) under the provisions and during the Term of
this Lease Tenant's quiet and peaceable enjoyment of the Premises will
not be disturbed or interfered with by Landlord or any person claiming
by, through or under Landlord.
SECTION 23: HOLDING OVER
23.01 If Tenant remains in possession of the Premises after the expiration of
this Lease without executing a new lease, it will be deemed to be
occupying the Premises as a tenant from month to month, subject to all
the provisions of this Lease to the extent that they can be applicable
to a month-to-month tenancy, except that the minimum net rental for
each month will be one hundred fifty percent (150%) of the last full
monthly installment of minimum net rental which Tenant was required to
pay under this Lease for the last full month preceding the month in
which this Lease expired or was terminated.
SECTION 24: REMEDIES NOT EXCLUSIVE; WAIVER
24.01 Each and every one of the rights, remedies and benefits provided by
this Lease are cumulative and are not exclusive of any other of said
rights, remedies and benefits, or of any other rights, remedies and
benefits allowed by law.
15
24.02 One or more waivers of any covenant or condition by Landlord will not
be construed as a waiver of a further or subsequent breach of the same
covenant or condition, and the consent or approval by Landlord to or of
any act by Tenant requiring Landlord's consent or approval will not be
deemed to waive or render unnecessary Landlord's consent or approval to
or of any subsequent similar act by Tenant.
SECTION 25: WAIVER OF SUBROGATION
25.01 Landlord and Tenant hereby waive any and all right of recovery against
each other for any loss or damage caused by fire or any of the risks
covered by the insurance policies carried or to be carried by them
under this Lease.
SECTION 26: RIGHT TO SHOW PREMISES
26.01 For a period commencing one hundred eighty (180) days prior to the
termination of this Lease or any extension thereof, Landlord may show
the Premises (at reasonable times after reasonable notice and may
display about the Premises signs advertising the availability of the
Premises.
SECTION 27: SECURITY DEPOSIT
27.01 Tenant shall pay to Landlord upon execution of this Lease the sum of
Fifteen Thousand One Hundred Forty Nine and 33/100 Dollars ($15,149.33)
("Security Deposit") which Landlord is to retain as security for the
faithful performance of all covenants, conditions and agreements of
this Lease. In no event shall Landlord be obligated to apply the same
upon rents in arrears or upon damages for Tenant's failure to perform
the said covenants, conditions, and agreements of this Lease; however,
Landlord may so apply the Security Deposit, as its option. Landlord's
right to bring a special proceeding to recover or otherwise to obtain
possession of the Premises before or after Landlord's declaration of
the termination of this Lease for nonpayment of rent or for any other
reason shall not in any event be affected by reason of the fact that
Landlord holds the Security Deposit. Such Security Deposit, if not
applied toward the payment of rents in arrears or toward the payment of
damages suffered by Landlord by reason of Tenant's default, is to be
returned to Tenant without interest, except as provided by law, when
this Lease is terminated according to its terms, but in no event is
such Security Deposit to be returned until Tenant has vacated the
Premises and delivered possession thereof to Landlord. In the event
that Landlord repossesses itself of the Premises, whether by special
proceeding or re-entry or otherwise, because of Tenant's default,
Landlord may apply such Security Deposit upon all damages suffered to
the date of said repossession and may retain the Security Deposit to
apply upon such damages as may be suffered or shall accrue thereafter
by reason of Tenant's default. In the event any bankruptcy, insolvency,
reorganization or other creditor-debtor proceedings shall be instituted
by or against Tenant, or its successors or
16
assigns, such Security Deposit shall be deemed to be applied first to
the payment of any rents due Landlord for all periods prior to the
institution of such proceedings, and the balance, if any, of such
Security Deposit may be retained by Landlord in partial liquidation of
Landlord's damages. Landlord shall not be obligated to keep such
Security Deposit as a separate fund buy may commingle the Security
Deposit with its own funds. In the event Landlord applies the Security
Deposit in whole or in part, Tenant shall, upon demand by Landlord,
deposit sufficient funds to maintain the Security Deposit in the
initial amount. Failure of Tenant to deposit such additional amount
shall entitle Landlord avail itself of the remedies provided in this
Lease for nonpayment of rent by Tenant.
SECTION 28: MOVE-IN; MOVE OUT
28.01 All activities of Tenant in connection with either its move into the
Premises at the commencement of this Lease or its move out of the
Premises at any time (whether or not on the termination of this Lease)
will be subject to the following:
(a) Tenant will be responsible for the active supervision
(on-site) of all workmen and others performing the move and
will indemnify and hold harmless Landlord against and from all
liability for damage to property (whether belonging to
Landlord or any other person) and injuries to persons in
connection with the move and the actions or failure to act of
or by those performing the move.
(b) Tenant will be responsible for any damage to the Improvements,
the Premises or the premises and property of others caused by
or incurred in connection with the move or the activities
connected therewith. Landlord will perform such inspection(s)
as Landlord in its sole discretion determines to be
appropriate, and will invoice Tenant for the repair of all
such damage or the replacement, if necessary, of damaged
items. All determinations of the extent of damage and the
costs of repair or replacement will be made by Landlord in its
sole discretion. The invoiced sums will constitute amounts
included within and payable under Section 10 above.
SECTION 29: COMPLIANCE WITH LEGAL REQUIREMENTS
29.01 Tenant shall promptly comply with all laws, statutes, ordinances and
governmental rules, regulations or requirements now in force or which
may hereafter be in force, with the requirements of any board of fire
underwriters or other similar body now or hereafter constituted, with
any occupancy certificate or directive issued pursuant to any law by
any public officer or officers, as well as the provisions of all
recorded documents affecting the Premises, insofar as any thereof
relate to or affect the condition, use or occupancy of the Premises.
17
SECTION 30: INDEMNIFICATION.
30.01 Tenant at its expense will defend, indemnify and save Landlord, its
licensees, servants, agents, employees and contractors, harmless from
any loss, damage, claim of damage, liability or expense to or for any
person or property, whether based on contract, tort, negligence or
otherwise, arising directly or indirectly out of or in connection with
the condition of the Premises, the use or misuse thereof by Tenant or
any other person, the acts or omissions of Tenant, its licensees,
servants, agents, employees or contractors, the failure of Tenant to
comply with any provision of this Lease, or any event on the Premises,
whatever the cause; provided, however, that nothing herein shall be
construed to require Tenant to indemnify Landlord against Landlord's or
its agent's or contractor's negligence or willful misconduct.
30.02 Landlord, at its expense, will defend, indemnify and save Tenant, its
agents and employees harmless for any loss, damage, claim of damage,
liability or expense arising out of claims for personal injury, death
or property damage relating to occurrences in or about the Premises
caused by the negligence or willful misconduct of Landlord, its agents
or contractors.
30.03 Notwithstanding the provisions of subsection 30.01 and 30.02, the
parties release each other from any claims either party ("Injured
Party") has against the other. This release is limited to the extent
the claim is covered by the Injured Party's insurance or the insurance
the Injured Party is required to carry under this Lease, whichever is
greater.
SECTION 31: DEFINITION OF LANDLORD; LANDLORD'S LIABILITY
31.01 The term "Landlord" as used in this Lease, so far as covenants,
agreements, stipulations or obligations on the part of the Landlord are
concerned, is limited to mean and include only the owner or owners of
fee title to the Premises at the time in question and, in the event of
any transfer or transfers of the title to such fee, the Landlord herein
named (and, in case of any subsequent transfers or conveyances, the
then grantor) will, upon the assumption by such transferee of
Landlord's obligations under this Lease automatically be freed and
relieved from and after the date of such transfer or conveyance of all
personal liability for the performance of any covenants or obligations
on the part of the Landlord contained in this Lease thereafter to be
performed. The foregoing limitation on Landlord's liability shall not,
apply with respect to claims made by Tenant against Landlord, in
writing, prior to such transfer unless the transferee specifically
assumes the obligation which forms the basis of Tenant's claim.
If Landlord fails to perform any provision of this Lease upon
Landlord's part to be performed and if, as a consequence of such
default, Tenant recovers a money judgment against Landlord, such
judgment may be satisfied only out of the proceeds of sale received
upon execution of such judgment and levied thereon against the right,
title and interest of Landlord in the Premises and out of rents or
other income from such property receivable by Landlord, and Landlord
shall not be personally liable for any deficiency.
18
SECTION 32: ENVIRONMENTAL MATTERS
32.01 (a) Landlord represents and warrants to Tenant that to Landlord's
actual knowledge the Premises is not subject to any liens,
actions or proceedings relating to "Hazardous Materials" (as
hereinafter defined) or "Environmental Laws" (as hereinafter
defined) and Landlord is not a party to any such action or
proceeding and Landlord has received no notice of any such
lien, action or proceeding that is pending or threatened.
Landlord shall notify Tenant of any subsequent lien, action or
proceeding which may hereafter be pending or threatened.
Landlord further represents and warrants to Tenant that to
Landlord's actual knowledge, no Hazardous Materials are or
have been located, stored or disposed of on or released or
discharged from the Premises in any manner or amount that
violates any Environmental Law or that would give rise to
liability under such law.
(b) Landlord shall, at no cost or expense to Tenant, take actions
necessary to comply with all Environmental Laws affecting the
Premises including, without limitation, removal, containment
and remedial actions required by any Environmental Laws or any
governmental agencies in the enforcement of Environmental Laws
affecting the Premises and shall indemnify and defend Tenant
from and against any and all costs, claims, expenses, damages,
liens, losses and judgments arising out of the breach of
Landlord's representations and warranties contained in this
Section. Notwithstanding the foregoing, Landlord's covenants
and indemnification obligations with respect to environmental
matters shall not extend to (i) any claim arising out of any
Hazardous Materials which are brought to or introduced to the
Premises from and after the date of this Lease by persons or
entities other than Landlord, its agents, employees,
contractors or representatives, or (ii) any claim by Tenant
for lost profits, interruption of business activities or any
other claims for damage or losses of a consequential nature.
(c) Neither Tenant nor its agents, employees, or contractors shall
cause or permit Hazardous Materials to be brought upon, kept
or used in, on, or about the Premises except as permitted
under and in full compliance with all Environmental Laws. If
Tenant obtains knowledge of the acts or suspected release of a
hazardous material, then Tenant shall promptly notify Landlord
of such acts or suspected release. Tenant shall immediately
notify Landlord of any inquiry, test, investigation or
enforcement proceeding by or against Tenant involving a
release. If Tenant or its agents, employees, or contractors
shall cause or permit a release, then Tenant shall promptly
notify Landlord of such release and Immediately begin
investigation and remediation of such release as required by
all Environmental Laws. Tenant shall indemnify, defend and
hold Landlord, its affiliates, subsidiaries, employees,
agents, officers, directors, invitees, contractors and their
respective successors and assigns harmless from and against
all loss, liability, suits, fines, damages, judgments,
penalties, claims, charges, costs and expenses (including
reasonable attorneys fees) attributable to the introduction of
Hazardous Materials to the Premises from and after the date
hereof and during the term of this Lease or Tenant's occupancy
of the Premises by persons or entities other than Landlord,
its agents, employees, contractors or representatives.
19
(d) As used herein, Hazardous Materials shall mean any material or
substance (i) defined as a "hazardous substance" pursuant to
the Comprehensive Environmental Response, Compensation and
Liability Act (42 USC Section 9601, et seq.), and all
amendments thereto and regulations promulgated thereunder;
(ii) containing gasoline, oil, diesel fuel or other petroleum
products; (iii) defined as a "hazardous waste" pursuant to the
Federal Resource Conservation Recovery Act (42 USC Section
6901, et seq.) and amendments thereto and regulations
promulgated thereunder; or (iv) the presence of which requires
investigation or remediation or which or becomes defined as a
"hazardous waste" or "hazardous substance" under any statute,
regulation or ordinance of any federal, state or local
governmental authority having jurisdiction over the Premises
("Applicable Laws"). The respective indemnification
obligations of Landlord and Tenant under this Section shall
survive the expiration or termination of this Lease.
(e) As used herein, Environmental Laws means those laws relating
to the storage, use, generation, manufacture, installation,
release, discharge, or disposal of "Hazardous Materials."
SECTION 33: ENTIRE AGREEMENT
33.01 This Lease and the Exhibits, attached hereto and forming a part hereof,
set forth all of the covenants, agreements, stipulations, promises,
conditions and understandings between Landlord and Tenant concerning
the Premises, and there are no covenants, agreements, stipulations,
promises, conditions or understanding, either oral or written, between
them other than herein set forth.
SECTION 34: GENERAL
34.01 Many references in this Lease to persons, entities and items have been
generalized for ease of reading. Therefore, references to a single
person, entity or item will also mean more than one person, entity or
thing whenever such usage is appropriate (for example, "Tenant" may
include, if appropriate, a group of persons acting as a single entity
or as tenants-in-common). Similarly, pronouns of any gender should be
considered interchangeable with pronouns of other genders.
34.02 Any waiver or waivers by Landlord of any of the provisions of this
Lease will not constitute a waiver of any later breach of that
provision, and any consent or approval given by Landlord with respect
to any act, neglect or default by Tenant will not waive or make
unnecessary Landlord's consent or approval with respect to any later
similar act, neglect or default by Tenant.
34.03 Topical headings appearing in this Lease are for convenience only. They
do not define, limit or construe the contents of any Paragraphs or
Clauses.
20
34.04 This Lease can be modified or amended only by a written agreement
signed by Landlord and Tenant.
34.05 All provisions of this Lease are and will be binding on the heirs,
executors, administrators, personal representatives, successors and
assigns of Landlord and Tenant.
34.06 The laws of the State of Michigan will control in the construction and
enforcement of this Lease.
SECTION 35: EXISTING CABLE
35.01 The parties acknowledge that there is currently running through the
Premises a cable which connects the buildings on either side of the
Premises. Tenant shall maintain the cable in good condition and repair
except for normal wear and tear and casualty damage (including the
replacement of parts and equipment, if necessary). Tenant shall not
remove or replace the cable without Landlord's prior written consent,
which consent shall not be unreasonably withheld.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the date
set forth at the outset hereof.
WITNESSES: LANDLORD:
PENOBSCOT LAND COMPANY, A MICHIGAN
CO-PARTNERSHIP
____________________________ By: ______________________________
Xxxxxx X. Xxxxxx
Its: Managing General Partner
TENANT:
ASSET ACCEPTANCE CORP., A MICHIGAN
CORPORATION
____________________________ By: ______________________________
X.X. Xxxxxxx
Its: President
21
____________________________
XXX ACCEPTANCE CORP., A MICHIGAN
CORPORATION
____________________________ By: ______________________________
X.X. Xxxxxxx
Its: President
____________________________
FINANCIAL CREDIT CORP., A MICHIGAN
CORPORATION
____________________________ By: ______________________________
X.X. Xxxxxxx
Its: President
____________________________
CITY FINANCIAL CORP., A MICHIGAN
CORPORATION
____________________________ By: ______________________________
X.X. Xxxxxxx
Its: President
____________________________
____________________________ By: ______________________________
Xxxxxx X. Xxxxxx
Its: Managing General Partner
____________________________
22
EXHIBIT A
LEGAL DESCRIPTION
City of Xxxxxx, County of Macomb, State of Michigan, described as:
Xxxx 00, 00 xxx 00, Xxxxxx Xxxxxxxxxx Subdivision as recorded
in Liber 78, pages 24, 25 and 26 of Plats, Macomb County
Records, together with that certain building consisting of
approximately 22,000 square feet and all improvements located
thereon.
Commonly known as 0000 Xxxxxx Xxxxx, Xxxxxx, Xxxxxxxx.
A-1
