EXHIBIT 10.3
This Lease made this 1st day of November, 1996 by and between XXXXXX STREET
ASSOCIATES, INC., of X.X. Xxx 000, Xxxxx Xxxx, Xxxxxxxx 00000, hereinafter
referred to as Lessor, and IVES BROADCASTING, INC., of 0000 X-00 Xxxx,
Xxxxxx, Xxxxxxxx 00000 hereinafter referred to as Lessee.
Lessor is the owner of the developed property known as 000 Xxxxxx Xxxxxx,
Xxxx of East Tawas, Iosco County, Michigan, and more particularly described as:
The lower floor of Xxx 0 xx Xxxxx 0 xx Xxxxxxxx'x Xxxx xx Xxxxxx 4, 5, 18,
and 19 of the City of East Tawas according to the plat thereof as recorded
in Liber 5 of Plats, pages 19-21, Iosco County Records. EXCEPT that part
thereof described as commencing at the Northwest corner of said Lot thence
North 79 degrees 52' East along the north line of said Lot, 120.00 feet,
thence south 9 degrees 28'36" East 44.78 feet, thence South 80 degrees
31'24" West 5.07 feet, thence South 9 degrees 28'36" East 0.33 feet, thence
South 80 degrees 31'24" West 114.90 feet to the East street line of Xxxxxx
Street, thence North 9 degrees 28'36" West along said East line 43.95 feet
to the point of beginning, according to survey by Xxxxx X. Xxxxxxxx, R.L.S.
#15397, dated June 9, 1973.
SECTION 1
Lessee desires to lease of the aforementioned real estate as described
above and hereinafter referred to as the "premises".
SECTION 2
The term of this Lease shall commence on November 1, 1996, and end on
July 31, 2000.
SECTION 3
The rent for the first year of said Lease shall be the sum of One Thousand
Eighty-Seven and 50/100 Dollars ($1,087.50) per month plus seventy-five
percent (75%) of the last years taxes will be applied toward the current
year. (Adjustments will be made to reflect true and accurate yearly tax
obligations before December 15 of each year.) Payments of rent and funds
towards taxes shall be paid on the 1st day of each and every month. However,
at the time of signing this agreement Lessee shall tender the first month's
rent, the sum of one-twelfth of seventh-five percent (75%) of 1995 taxes, and
the sum of One Thousand Six Hundred Thirty-One and 25/100 Dollars ($1,631.25)
as a deposit and in the event Lessee fails to tender an additional month's
rent and tax payment on or before September 1, 1996, said deposit will be
forfeited and this Lease cancelled. Thereafter on the 1st day of each month
Lessee shall tender an additional month's rent including the additional funds
toward property taxes until July 31, 1997.
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Hundred Eighty Dollars ($1,180.00) per month and the Lessee shall tender said
amount plus an additional One Hundred Thirty-Eight and 75/100 Dollars
($138.75) toward the deposit. Commencing August 1, 1998, the rent shall be
increased to One Thousand Two Hundred Fifty Dollars ($1,250.00) per month and
the Lessee shall tender said amount plus an additional One Hundred Twelve and
50/100 Dollars ($112.50) toward the deposit. Commencing August 1, 1999, the
rent shall be increased to One Thousand Three Hundred Dollars ($1,300.00) per
month and the Lessee shall tender said amount plus an additional Seventy-Five
($75.00) toward the deposit; until further increases are negotiated by the
parties.
Past due rents shall bear interest at the sum of seven percent (7%) per
annum compounded annually.
SECTION 4
Lessor shall pay all real property taxes and assessments levied on the
original premises. Lessee shall pay all business taxes, personal property
taxes, and license fees when due.
SECTION 5
Lessee shall not assign this Lease nor sublet the premises to another
party without the express written approval of Lessor, which shall not be
unreasonably withheld. Lessee acknowledges that the premises, due to a prior
contract, cannot be used as a hardware store. Violation of this provision
shall be grounds for termination of the Lease and Lessor shall be entitled to
immediate possession.
SECTION 6
Lessor and Lessee acknowledges that the premises is rented in an ""AS IS''
condition and Lessee accepts full responsibility for the remodeling of the
interior of the premises. All remodeling shall be pursuant to the Michigan
Building Code and all work shall be done by licensed contractors,
electricians, and plumbers. Lessee agrees to pay any and all contractors in a
timely and reasonable manner and will indemnify Lessor for any losses it
incurs as a result of the Lessee' remodeling of the premises. Any
improvements at the commencement of this lease or at the conclusion of this
rental period (excluding trade fixtures that can be removed without harm to
the building).
Additionally, Lessee shall be responsible for all repairs required as the
result of the negligent acts of Lessee or its agents including any
improvements Lessee makes to the premises as set forth herein.
SECTION 7
Lessee shall be responsible for heat, water, lights, and shall be
responsible for maintaining the bathroom.
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Lessor shall carry fire and other casualty insurance generally carried on
the building and premises during the term of this Lease in an amount equal to
prevent appraised value. Lessee shall furnish liability insurance in the
amount of $100,000 and $300,000 for each injury to either employees or
invitees on the business premises for each accident or occurrence and in
addition Lessee shall carry such insurance as it deems necessary with regard
to inventory, fixtures, and equipment.
SECTION 9
This Lease Agreement shall terminate in the event of a total condemnation
by an authorized governmental agency. A partial condemnation shall only
terminate the lease at the option of Lessees. In the event of a termination
due to partial or total condemnation, then in that event, the rent that has
been paid shall be prorated to the date of termination of the Lease.
If the premises are damaged or destroyed by fire or other elements,
Lessor, at its option, may immediately repair, rebuild, or restore the
premises to the original condition. However, in the opinion of Lessor, if the
premises cannot be repaired, restored, or rebuilt, in the exercise of due
diligence within ninety days either party may cancel this Lease by written
notice to the other. If the Lease is not cancelled the rent will xxxxx until
the premises is restored to a tenantable condition in proportion to the
extent the premises are rendered untenantable. If the Lease is cancelled the
pursuant to this condition the rent will xxxxx to the date of cancellation in
proportion to the extent the premises are untenantable and the unused portion
would be promptly refunded to Lessee.
SECTION 10
Lessee acknowledges that it has examined the premises and agrees it is in
satisfactory condition at the time Lessee enters into possession of the
premises subject to the obligations of Lessee as stated in Paragraph 6.
Lessor warrants that it holds Marketable Title thereto.
SECTION 11
Lessor shall, upon default with respect to any of the provisions of this
Lease by Lessee, provide Lessee with written notice of any breach of the
Lease terms or conditions and Lessee shall then have ten (10) days to either
correct the condition, or commence corrective action if the condition cannot
be corrected in ten (10) days. If the condition cannot be corrected in ten
(10) days, Lessee shall have a reasonable time to complete the correction.
Lessee shall, upon default with respect to any of the provisions of this
Lease by Lessor, provide Lessor with written notice of any breach of the
Lease terms or conditions and Lessor shall then have ten (10) days to either
correct the condition, or commence corrective action if the condition cannot
be corrected in ten (10) days. If the condition cannot be corrected in ten
(10) days, Lessee shall have a reasonable time to complete the correction.
Lessee shall, upon default with respect to any of the provisions of this
Lease by Lessor, provide Lessor with written notice of any breach of the
Lease terms or conditions and Lessor shall have ten (10) days to either
correct the condition, or commence corrective action if the condition cannot
be corrected in ten (10) days, Lessor shall have a reasonable time to
complete the
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correction. In the event Lessor or Lessee breaches any terms of the Lease and
are not cured in a timely manner pursuant to the above referenced notice, then
in that event, either party may commence action the 00xx Xxxxxxxx Xxxxx for
termination of the Lease and/or damages.
SECTION 12
Lessor and Lessee agrees that smoking on the premises is a hazard to the
Leasehold premises and customers; and therefore Lessee agrees to prohibit
smoking in the Leased premises under its control.
SECTION 13
Any and all remedies provided to Lessor or Lessee for the enforcement of
the provisions of this Lease are cumulative and not exclusive, and either
party shall be entitled to pursue their rights enumerated in this Lease or
remedies authorized by law, or both.
IN WITNESS WHEREOF, the parties have executed this Lease on the days and
year below written.
Dated: November 1, 1996
----------------------
WITNESSES: XXXXXX STREET ASSOCIATES, INC.,
Lessor
/s/ Xxxxx X. Xxxxxxx /s/ Xxxxxxx C.A. Xxxxxxxxx
---------------------------- ------------------------------
Xxxxx X. Xxxxxxx By: Xxxxxxx X. Xxxxxxxxx, III
President
/s/ Xxxxxxx X. Huntly /s/ Xxxx X. Xxxxxxx
---------------------------- ------------------------------
Xxxxxxx X. Huntly By: Xxxx X. Xxxxxxx, Secretary
Dated: November 1, 1996
----------------------
WITNESSES: IVES BROADCASTING, INC.
Lessee
/s/ Xxxxxx Xxxxxxx
---------------------------- -------------------------------
By: Xxxxxx Xxxxxxx, President/Chairman
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DRAFTED BY: XXXXX AND XXXXX, Law Offices By: Xxxxxxx X. Xxxxx, 000 Xxxx
Xxxxxx, X.X. Xxx 000, Xxxxx Xxxx, Xxxxxxxx; Telephone (000) 000-0000.
(sah)misc\xxxxxx\lease.wpd
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