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Exhibit 10.13
AGREEMENT OF LEASE
AGREEMENT OF LEASE entered into as of September 1, 1986, by and
between XXXX X. XxXXXX, Successor Trustee of The Xxxx X. Xxxxxx Trust, as
amended, 000 Xxxxx Xxxx Xxxxxx, Xxxxxx Xxxxx, Xxx Xxxxx, Xxxxxxxx 00000
(hereinafter referred to as "Landlord") and NEBRASKA BOOK COMPANY, INC., a
Kansas corporation with offices at X.X. Xxx 00000, Xxxxxxx, Xxxxxxxx 00000
(hereinafter referred to as "Tenant"),
W I T N E S S E T H:
Property Demised and Warranties. Landlord agrees to lease to Tenant,
upon the terms and conditions hereinafter set forth, the property and all
fixtures attached thereto located at 000 Xxxx Xxxxxxxxxx Xxxxxx, Xxx Xxxxx,
Xxxxxxxx (hereinafter referred to as the "Leased Premises"), and more fully
described in Schedule A attached hereto and made a part hereof.
Landlord represents and warrants that there are no liens or
encumbrances that affect or shall affect Tenant's use of the property as herein
set forth. So long as Tenant shall pay rental and other sums provided herein and
shall keep and perform all the terms, covenants and conditions on its part
contained herein, Landlord covenants Tenant shall have the right to peaceful and
quiet enjoyment of the premises.
Landlord further represents and warrants that he has full right,
power, and authority to enter into this Lease for the term herein set forth and
that there exist on the date this agreement is signed no city, county or state
zoning, building, or use restrictions which would prohibit Tenant from
continuing the use of the Leased Premises in its present manner for the purpose
herein contemplated.
Term and Extension. The initial term of this Lease shall be for a
period of ten (10) years, commencing September 1, 1986 and terminating August
31, 1996, both dates inclusive. Tenant shall have the option to extend this
Lease for two (2) additional periods of ten (10) years each, provided Tenant is
not then in default of any of its obligations hereunder. However, and
notwithstanding anything to the contrary herein, Tenant's right to exercise its
option to extend the term shall in no event lapse until thirty (30) days after
Tenant receives written notice from Landlord that the period for exercise of the
option to extend will lapse after said thirty (30) days.
Tenant shall exercise its options to extend this Lease by giving
written notice of the exercise of each such option prior to a date six (6)
months, before the
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end of the initial term of this Lease or the first extension term, as the case
may be, provided Tenant is not then in default of any of its obligations
hereunder.
The extended term shall be upon the same terms, covenants, and
conditions, as provided in this Lease for the initial term, except rent which
shall be as provided in the Rent section, below. Any rightful termination of
this Lease during the initial term or during any extension thereof shall
terminate any and all further rights of renewal or extension hereunder.
Rent.
A. The rent for the first thirty-six (36) months of the lease term
shall be Seven Thousand Seven Hundred Fifty Dollars ($7,750.00) per month
payable in advance, beginning September 1, 1986.
B. The rent for the next twenty-four (24) months of the lease term
shall be Eight Thousand Two Hundred Dollars ($8,200.00) per month payable in
advance, beginning September 1, 1989.
C. On September 1, 1991 and every sixty (60) months thereafter,
during the rental term and, if applicable, the two (2) ten (10) year option
periods, the monthly rental shall be adjusted as the parties agree. In the
absence of agreement, the then existing fair rental value of the Leased Premises
shall be determined as follows:
The then existing fair rental value of the Leased Premises shall be
determined by the average of the appraised rental value determined by
three MAI real estate appraisers; one selected by Landlord; one selected
by Tenant; and the third selected by the first two selected appraisers.
The arbitrators shall be governed by Chapter 50 of the Michigan Revised
Judicature Act, as amended, and a judgment of any Michigan Circuit court
may be rendered upon the award made pursuant to this agreement.
In determining the then existing fair rental value of the Leased
Premises, whether by agreement or arbitration, other rental properties owned by
The Xxxx X. Xxxxxx Trust, by The Xxxxx X. Xxxxxx Trust, by Xxxxxx X. Xxxxx or
the Xxxxx Associates Limited Partnership, any successor thereto or by any other
trust, partnership or entity in which any of the foregoing have a controlling
interest, shall not be utilized or considered in such determination.
PROVIDED, the monthly rental shall not be less than that in effect
for the period immediately preceding adjustment. Further, any percentage of
rental increase for the period of September 1, 1991 through August 31, 1996 only
shall in no event exceed the percentage increase in the consumer price index for
the period of September 1, 1986 through August 31, 1991.
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PROVIDED, the monthly rental for this initial sixty (60), months of
each of the option periods shall be determined not less than sixty (60) days
prior to the last date for the exercise of the option.
D. All rent payments due hereunder shall be payable in accordance
with the terms of this section at 000 Xxxxx Xxxx Xxxxxx, Xxxxxx Xxxxx, Xxx
Xxxxx, Xxxxxxxx or at such place as Landlord may direct.
Use of Premises, Restrictions, and Quiet Enjoyment. It is understood
and agreed by the parties that Tenant intends to use the Leased Premises for the
operation of a retail bookstore and related retail uses; however, if at any time
during this Lease or any period of extension or renewal thereof Tenant desires
to use and occupy the premises for any other lawful purpose, Tenant may do so
provided that Tenant first obtains the prior written consent of Landlord, which
consent shall not be unreasonably withheld, and provided further that the
premises shall not be used or occupied for any unlawful business, use, or
purpose, nor for any business, use, or purpose deemed extrahazardous or in
violation of any governmental law or regulation presently existing or
subsequently enacted.
Asbestos and Hazardous Waste Materials. Landlord warrants that it
has not installed asbestos on or about the Leased Premises since assuming
responsibility for the Leased Premises after the death of Xxxx X. Xxxxxx in
1981. To the best of Landlord's knowledge, information and belief, the Leased
Premises do not contain and have not in the past ten (10) years contained any
hazardous waste material subject to local, state or federal regulations as to
use, storage or disposal.
The parties understand that Tenant intends to continue the use of
the Leased Premises in the same manner as currently conducted. Landlord
recognizes that it is essential to Tenant to continue such use without the cost
of revisions or reconstruction required by any governmental authority.
Therefore, in the event asbestos or any hazardous waste material hereinbefore
described is found to be located on the Leased Premises on the date this
agreement is signed, Landlord, at its sole expense, and in compliance with
applicable law and regulation, shall promptly remove or contain any asbestos or
hazardous waste material within the Leased Premises.
Compliance with Law. Except as otherwise agreed in this Lease or
warranted in this Lease, Tenant shall, at its sole expense, comply with all
laws, orders, and regulations of federal, state and municipal authorities and
with any direction of any public officer, pursuant to law, which shall impose
any duty upon Landlord with respect to the Leased Premises and shall obtain all
licenses or permits which may be required for the conduct of its business within
the terms of this Lease or for the making of repairs, alterations, improvements,
or additions, and Landlord, where necessary, will join with Tenant in applying
for all such permits or licenses.
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Repairs and Maintenance. Tenant shall, during the term of this Lease
or any renewal or extension thereof, at its sole expense, keep the interior and
exterior, including the roof, of the Leased Premises in as good order and repair
as it is at the date of commencement of this Lease, reasonable wear and tear and
damage by accident, fire, or other casualty excepted. Tenant shall not knowingly
commit or willingly permit to be committed any act or thing contrary to the
rules and regulations prescribed from time to time by the Washtenaw County Board
of Health or which shall be contrary to the rules and regulations of any
federal, state, or municipal authority. Tenant has inspected the premises and is
satisfied with said premises and accepts the premises in its present condition,
subject only to Landlord's representations and undertakings herein.
Alterations and Improvements. Tenant shall have the right, from time
to time and at its sole expense, provided the same do not affect adversely the
structure of the premises, to make such alterations, improvements, modifications
or changes to, or decoration of the interior or exterior of the Leased Premises
as shall be reasonable or appropriate in Tenant's judgment for Tenant's conduct
thereon of its business. Tenant understands and agrees that prior to any change,
alteration, improvement, or modification to either the interior or exterior of
the Leased Premises, including signage, permission shall first be obtained in
writing from Landlord, such permission not to be unreasonably withheld.
Any such alteration, improvement, modification, or change (except
for movable items and trade fixtures) shall, at termination of this Lease or any
extension thereof, become the exclusive property of Landlord, as his interest
may appear, and be surrendered with and as part of the Leased Premises.
Taxes and Assessments. Landlord shall pay all real estate taxes,
except if real estate taxes levied on the Leased Premises exceed Twelve Thousand
Dollars ($12,000.00) per calendar year, Tenant shall pay such excess as
additional rent, payable immediately upon notice from Landlord of the sum due.
Landlord shall also pay any special assessment imposed upon the Leased Premises
for any purpose whatsoever during the initial term of this Lease or any
extension thereof; except if a parking assessment is imposed, Tenant shall pay
any such assessment.
If the city, county, state, or any other political subdivision
within which the Leased Premises is located shall, during the term of this
Lease, impose upon the Landlord any tax or other governmental charge ("non-real
estate tax") in lieu of all or any part of the real estate taxes which, prior to
such imposition, were assessed or levied against the Leased Premises ("real
property taxes"), such non-real property tax shall, for purposes of this
paragraph, be treated as if it were a real estate tax.
Any personal property tax assessed on inventory or goods shall be
paid by Tenant.
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Insurance. Landlord shall keep the Leased Premises insured against
loss or damage by fire with extended coverage endorsement in an amount
sufficient to prevent Landlord from becoming a co-insurer under the terms of the
applicable policies but, in any event, in an amount not less than eighty percent
(80%) of the full insurable value as determined from time to time. The term
"full insurable value" shall mean actual replacement cost (exclusive of
excavation, foundations and footings below the basement floor) without deduction
for physical depreciation. Such insurance shall be issued by financially
responsible insurers duly authorized to do business in the State of Michigan.
Landlord shall pay the cost of fire and extended coverage insurance, except if
the cost of such insurance exceeds Five Thousand Dollars ($5,000.00) annually,
Tenant shall pay such excess as additional rent, payable immediately upon notice
from Landlord of the sum due.
Tenant, at all times during the term of this Lease or any extension
or renewal thereof, at its expense, shall procure, maintain, and keep in force
general public liability insurance for claims for personal injury, death, or
property damage occurring in or about the Leased Premises, with limits of not
less than Five Hundred Thousand Dollars ($500,000.00) in respect to death or
injury to a single person; not less than One Million Dollars ($1,000,000.00) in
respect to any one accident; and not less than One Hundred Thousand Dollars
($100,000.00) in respect to property damage. Tenant shall name Landlord as an
additional insured thereunder.
Tenant shall further procure, maintain, and keep in force building
contents insurance in an amount acceptable and deemed necessary by Tenant.
Tenant shall pay, or reimburse Landlord for, the premiums on a
policy of insurance insuring against loss of rent. Tenant shall also be liable
for plate glass insurance.
Each party agrees to waive any and all claims of subrogation against
the other as to any liability or potential liability of the other to the extent
any such claims are covered from time to time by policies of insurance covering
the Leased Premises.
Tenant shall deliver to Landlord appropriate certificates of
insurance confirming that the insurance to be obtained by Tenant hereunder is in
full force and effect and that prior to any cancellation thereof, notice of such
cancellation shall be given to Landlord.
Utilities and Other Services. Tenant shall make arrangements for and
shall pay, or cause to be paid, charges for any and all gas, electricity, water,
light, heat, air conditioning, power and telephone, or other communication
service used, rendered, or supplied upon or in connection with Tenant's use of
the Leased Premises and shall indemnify and hold Landlord harmless for any
liability or damages on such account.
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Property Loss, Damage, Etc. Landlord shall not be liable to Tenant
for any loss or damage:
(a) To property of Tenant, Tenant's agents, servants,
employees, visitors, or licensees entrusted to Landlord or Landlord's agents or
employees, or
(b) For any loss of property due to theft, vandalism, or Acts
of God, or
(c) For any injury or damage to persons or property resulting
from falling plaster, steam, gas, electricity, water, rain, or snow which may
leak from any part of said building or from the pipes, appliances, or plumbing
works thereof or from the street or from any place or by dampness, or
(d) For any damage caused by other tenants, subtenants, or
persons in the Leased Premises, or
(e) For interference with the light or other incorporeal
hereditaments or caused by operation in construction of any public or
quasi-public work, or
(f) Any latent defect or for the presence of bugs, vermin, or
insects, if any, in the premises.
Fire, Other Casualty Loss. In all cases where the Leased Premises is
damaged in whole or in part by fire or other casualty, Landlord shall repair the
damage with reasonable dispatch, and if the damage has rendered the Leased
Premises untenantable, in whole or in part, there shall be an apportionment of
the rent until the damage has been repaired except as modified by Tenant's
obligation to insure against rent loss (see page 5 - Insurance). In determining
what constitutes reasonable dispatch, consideration shall be given to delays
caused by strikes, adjustment of insurance, and other causes beyond Landlord's
control.
All insurance proceeds paid by reason of any damage or loss
hereinabove described shall be paid to Landlord to be used by Landlord for the
purposes hereinabove set forth.
Condemnation. If the whole of the Leased Premises, or such portion
thereof as will make the Leased Premises unsuitable for the purposes herein
leased, is condemned for any public use or purpose by any legally constituted
authority, then, in either of such events, this Lease shall cease from the time
when possession is taken by such public authority, and rental shall be accounted
for between Landlord and Tenant as of the date of surrender of possession. Such
termination shall be without prejudice to the rights of either Landlord or
Tenant to recover compensation from the
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condemning authority for any loss or damage caused by such condemnation. Neither
Landlord nor Tenant shall have any rights in or to any award made to the other
by the condemning authority. If a portion of the Leased Premises is taken by
condemnation but the remaining premises may be still economically used for the
purposes set forth herein, there shall be an equitable apportionment of rent.
Sublet, Assignment. Tenant shall, from time to time, have the right
to sublet all or portions of the Leased Premises for the remainder of the term
or any extension thereof with the prior written approval of Landlord, which
approval Landlord shall not unreasonably withhold. In the event of any sublet of
the Leased Premises contemplated hereunder, Tenant shall remain primarily liable
for the payment of the rent herein reserved and for the performance of all other
terms and conditions of this Lease required to be performed by Tenant.
It is further understood and agreed that this Lease may be assigned
by Tenant upon written approval of the Landlord, such approval not to be
unreasonably withheld. However, Landlord specifically agrees that this Lease may
be assigned to and assumed by any parent or affiliated corporation of the
Company. Landlord may assign this Lease to any person or persons without written
approval of Tenant, provided that any assignee of Landlord agrees to abide by
all of the terms, covenants, and conditions set forth in this Lease.
Surrender at Termination. Tenant shall, on the expiration or the
sooner termination of the lease term, surrender to Landlord the Leased Premises,
including all replacements, changes, additions, and improvements constructed or
placed by Tenant therein, with all equipment in or appurtenant thereto, except
all movable items and trade fixtures installed by Tenant, in good condition and
repair, reasonable wear and tear excepted. Any movable items, trade fixtures,
equipment, or personal property belonging to Tenant or to any other subtenant,
if not removed at such termination and if Landlord shall so elect, shall be
deemed abandoned and become the property of Landlord without any payment or
offset therefor. If Landlord shall not so elect, Landlord may remove such
fixtures or property from the Leased Premises and store them at Tenant's risk
and expense. Tenant shall repair and restore and save Landlord harmless from all
damage to the Leased Premises caused by such removal, whether by Tenant or by
Landlord.
It is further understood and agreed that at the termination of this
Lease or any period of extension or renewal hereunder, Tenant shall surrender
the premises to Landlord and, at the time of such surrender, remove, or cause to
be removed, from the Leased Premises any and all items, of whatever nature and
wheresoever situate on the Leased Premises, that may in any way interfere with
Landlord's subsequent rental of the property as standard commercial real estate.
Waiver. One or more waivers of any breach, covenant, or condition of
this Lease by Landlord shall not be construed as a waiver of such covenant or
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condition or as a waiver of any subsequent breach of the same covenant or
condition. No payment by Tenant or receipt by Landlord of a lesser amount than
the monthly rent herein stipulated shall be deemed to be other than on account
of Tenant for any balance due and owing, nor shall any endorsement on any
statement or check nor any letter accompanying any check or payment as rent be
deemed an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord's rights to recover the balance of such rent or
pursue any other remedy provided in this Lease.
Breach, Default. The parties hereto expressly covenant and agree
that in the event there is a breach or default by Tenant in the performance of
any term, covenant, or condition herein contained or hereafter established (and,
with respect to any term, covenant or condition other than payment of rent or
other sums due of Tenant hereunder, such breach is not cured by Tenant within
ten (10) days after written notice thereof), or if proceedings are commenced
against Tenant in any court under a bankruptcy act or for the appointment of a
trustee or receiver of the Tenant's property, either before or after the
commencement of the lease term, Landlord may, upon the giving of proper notice
as provided for by the laws of the State of Michigan, terminate this Agreement
of Lease, and upon Tenant's failure to vacate the premises, Landlord may
re-enter or repossess the Leased Premises by summary proceedings and dispossess
or remove the Tenant or occupants thereof and their effects. Landlord may store
all property of Tenant so removed and Tenant shall pay Landlord the rate of One
Hundred Dollars ($100.00) per day as storage fees. Upon re-entry or
repossession, Landlord shall use all reasonable diligence to relet the Leased
Premises, or any part thereof, and collect from Tenant the difference between
the rent hereby reserved and agreed to be paid by Tenant for the portion of the
term remaining at the time of re-entry or repossession and the amount, if any,
received or to be received under such reletting for such portion of the term. If
the repossessed property is relet pursuant to the terms of this section,
Landlord may collect such rentals which, in his sole discretion, he may deem
advisable, with the right to make alterations and repairs to the premises.
Rentals received by Landlord from such reletting shall be applied as follows:
1. To the payment of any indebtedness, other than rent, due
hereunder from Tenant to Landlord, including all damages, attorney fees, and
costs sustained by Landlord as a result of the default of Tenant.
2. To the payment of rent due and unpaid hereunder.
3. To the payment of any cost of such reletting.
4. To the payment of the cost of any alteration or repair to the
premises.
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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
such rentals received from such reletting during any month be less than the
amount agreed to be paid that month by the Tenant hereunder, then Tenant shall
pay such deficiency to Landlord. Such deficiency shall be calculated and paid
monthly.
No such re-entry and/or taking possession of the premises by
Landlord shall be construed as an election on his part to terminate this Lease
unless written notice of such intent shall be given to Tenant or unless the
termination hereof be decreed by a court of competent jurisdiction.
Should Landlord at any time terminate this Lease for any breach, in
addition to any other remedy he may have, he may recover from Tenant all damages
that may be incurred by reason of such breach, including the cost of recovering
the premises and including the worth at the time of such termination of the
excess, if any, of the amount of rent and charges equivalent to rent reserved in
this Lease for the remainder of this date of term over the then reasonable
rental value of the premises for the remainder of this date of term.
If the Landlord shall breach any of the conditions required to be
performed by him under this Lease and such breach is not cured by Landlord
within ten (10) days after written notice thereof, Tenant may either cure such
breach and deduct the cost thereof from rent subsequently becoming due hereunder
or elect to terminate this Lease upon giving at least thirty (30) days notice to
Landlord of its intention to do so, in which event this Lease shall terminate
upon the date fixed in such notice (unless the Landlord shall have meanwhile
cured such default).
Notwithstanding the foregoing, if it is not reasonably possible for
the Landlord or the Tenant, as the case may be, to cure a stated breach within
ten (10) days after written notice thereof, the other party shall withhold
enforcement of its remedies stated in this section for a reasonable period,
PROVIDED that the party to whom such written notice is given must be pursuing a
cure thereof diligently and in good faith. The immediately preceding sentence of
this paragraph, however, shall not apply to any breach or default by Tenant for
which ten (10) days written notice is not required (including Tenant's failure
to pay rent or other sums due of Tenant hereunder).
Notices. Any notice required to be given by the terms of this Lease
shall be in writing and shall be sent by first class: mail to the last address
of the party to whom the notice is to be given, as designated by such party in
writing. Landlord hereby designates his address as 000 Xxxxx Xxxx Xxxxxx, Xxxxxx
Xxxxx, Xxx Xxxxx, Xxxxxxxx. Tenant hereby designates its address as X.X. Xxx
00000, Xxxxxxx, Xxxxxxxx 00000.
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Entire Agreement; Severability. This Lease contains the entire
agreement between the parties and shall not be modified in any manner except by
an instrument in writing executed by the parties. If any term or provision of
this Lease or the application thereof to any person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder of this Lease, or the
application of such term or provision to persons or circumstances other than
those as to which it is held invalid and unenforceable, shall not be affected
thereby and each other term and provision of this Lease shall be valid and
enforced to the fullest extent permitted by law. The covenants, conditions, and
agreements contained in this Lease shall bind and inure to the benefit of
Landlord and Tenant and their respective heirs, distributees, personal
representatives, trustees, successors, and assigns.
Reduction of Rent. In consideration of payment by Tenant to Xxxxxx
X. Xxxxx, a retired employee of Xxxxxx'x Books, Inc., Tenant's successor in
interest, of the sum of $140.00 per month commencing August 1, 1980, for a
period of ten (10) years, or until the death of the survivor of Xxxxxx X. Xxxxx
and his wife, whichever event occurs first, Landlord does hereby reduce the
monthly rental provided for in this Lease by the sum of $140.00 per month,
continuing from August 1, 1980 for ten (10) years, or until the death of the
survivor of Xxxxxx X. Xxxxx and his wife, whichever event occurs first.
Joint Default. If Tenant shall breach or default in the performance
of any term, covenant or condition contained or hereafter established in any
other lease with Landlord for other property located in Washtenaw County,
Michigan, such breach or default shall be deemed a breach or default under this
Agreement of Lease.
Access to Leased Premises. If access to the Leased Premises is by
stairway or other areas not within the Leased Premises, Landlord shall provide
all necessary and reasonable access for the benefit of Tenant. If the Leased
Premises includes stairways or other areas that are required for access to other
rental properties not included as part of the Leased Premises, Tenant shall
permit necessary and reasonable access to such other rental properties;
PROVIDED, however, Tenant's consent to such access shall be first obtained.
Tenant shall not unreasonably withhold such consent.
First Refusal Option. The Landlord hereby grants to Tenant a first
refusal option to purchase the Leased Premises during the term of this Lease and
any extension or renewal term. The Landlord shall give written notice to Tenant
of all of the terms and conditions of any proposed offering for sale (including
any unsolicited offer to purchase not attendant to a proposed offering of
Landlord), during the option period, and the Tenant shall have sixty (60) days
thereafter to exercise said option. Should the option not be exercised, the
Landlord may thereafter offer the Leased Premises for sale and may consummate a
sale subject to this Lease to any third party or parties on the terms and
conditions of said written notice within twelve (12) months from the expiration
of Tenant's sixty (60) day period. Any material variation
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from said terms and conditions shall require a re-submission of the offer to the
Tenant under this option. It is understood that such sale to a third party or
parties may include other properties for additional consideration and under
additional terms and conditions. The Tenant's failure to exercise this option,
or the Tenant's written waiver of this option with respect to any proposed offer
for sale shall not constitute a waiver of the option rights created herein with
respect to any subsequent transaction.
NEBRASKA BOOK COMPANY, INC.
/s/ Xxxx X. Xxxxxx By: /s/ Xxxx X. Xxxx
--------------------------- ------------------------------
Vice President
/s/ Xxxxx X. Xxxxxx
---------------------------
STATE OF CONNECTICUT )
) ss.:
COUNTY OF FAIRFIELD )
The foregoing instrument was acknowledged before me this 27th day of
August, 1986, by Xxxxxx Xxxxx, General Partner of Xxxxx Associates Limited
Partnership, a Connecticut limited partnership.
/s/ Xxxx X. Santa
----------------------------------
Notary Public
Fairfield County, Connecticut
My Commission Expires: 3/31/91
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STATE OF MICHIGAN )
) ss.:
COUNTY OF WASHTENAW)
The foregoing instrument was acknowledged before me this 28th day of
August, 1986, by Xxxx X. Xxxx of Nebraska Book Company, Inc., a Kansas
corporation, on behalf of the corporation.
/s/ Xxxxxxxx X. Xxxxx
----------------------------------
Notary Public
Washtenaw County, Michigan
My Commission Expires: 12/28/88
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Schedule A
AGREEMENT OF LEASE
Xxxxxx Trust - Nebraska Book Company, Inc.
Premises located in the City of Xxx Arbor, Washtenaw County,
Michigan, described as:
AS TO 000-000 XXXX XXXXXXXXXX: Commencing at a point in the S line of Lot 21, in
X.X. Xxxxx'x Addition, as recorded in Liber 42 of Deeds, page 446, Washtenaw
County Records, 16.59 feet E of the SW corner of Lot 21; thence N 27.44 feet
parallel to the W line of the said lot for a place of beginning; thence
continuing N 16.59 feet E of and parallel to the W line of Lots 20 and 21 in
X.X. Xxxxx'x Addition, 54.97 feet; thence E'ly parallel to the N line of South
University Avenue 105.97 feet; thence S'ly along a line which is the
continuation N'ly of the W face of the W wall of Xxxxxxxxx'x store and the W
face of said wall, 82.41 feet to a point in the N line of South University
Avenue, said point being 122.66 feet E of the SW corner of Lot 21; thence N
43.53 feet in the N line of South University Avenue; thence N parallel to the W
line of Lot 21 and in the S'ly extension of the center line of an existing wall
and along the center line of said wall 27.44 feet; thence W parallel to South
University Avenue in the center line of an existing wall and its extension W
62.54 feet to the place of beginning; being a part of said Lots 20 and 21 in
said X.X. Xxxxx'x Addition. ALSO commencing at the SW corner of Lot 21 in X.X.
Xxxxx'x Addition, as recorded in Liber 42 of Deeds, page 446, Washtenaw County
Records; thence N 27.44 feet along the W line of Lot 21 for a place of
beginning; thence continuing N along said lot line, 54.97 feet; thence E 16.59
feet parallel to South University Avenue; thence S 54.97 feet parallel to the W
line of Lot 21 to a point 27.44 feet N of South University Avenue; thence W
16.59 feet to the place of beginning; being a part of said Lots 20 and 21 in
said X.X. Xxxxx'x Addition.
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AGREEMENT OF LEASE
AGREEMENT OF LEASE entered into as of August 1, 1990, by and between
Xxxxx Associates Limited Partnership, a Connecticut limited partnership
registered to transact business in Michigan (hereinafter referred to as
"Landlord") and Nebraska Book Company, Inc., a Kansas corporation (hereinafter
referred to as "Tenant"),
W I T N E S S E T H:
Property Demised. Landlord agrees to lease to Tenant, upon the terms
and conditions hereinafter set forth, the property and all fixtures attached
thereto located at 1115 South University (First Floor and Basement only), Ann
Arbor, Michigan (hereinafter referred to as the "Leased Premises").
Term and Extension. The initial term of this lease shall be for a
period of seventy-three (73) months commencing August 1, 1990 and terminating
August 31, 1996. Tenant shall have the option to extend this lease for two (2)
additional periods of ten (10) years each provided Tenant is not then in default
of any of its obligations, hereunder. The provision for the exercise of the
above options shall be the same as the exercise option provisions of an existing
lease between the parties dated August 27, 1986 on property located at 1111 and
0000 Xxxxx Xxxxxxxxxx, Xxx Xxxxx, Xxxxxxxx.
Rent. The rent for the first thirteen (13) months of the lease term
shall be One Thousand Nine Hundred Twenty-five Dollars ($1,925.00) per month
payable in advance beginning August 1, 1990.
The rent for the next sixty (60) months and, if applicable, the two
(2) ten (10) year option periods shall be determined in the same manner as
provided in an existing lease between the two parties on property located at
1111 and 0000 Xxxxx Xxxxxxxxxx, Xxx Xxxxx, Xxxxxxxx under the Rent provision,
Item C on page two of said lease.
15
2
Other Lease Provisions. All general lease provisions of the above
mentioned existing lease for 1111 and 1117 South University, excepting the
Property Demised and Warranties, Term and Extension, and Rent provisions, shall
be applicable to this lease.
Landlord:
Xxxxx Associates Limited Partnership, a
Connecticut limited partnership
By: /s/ Xxxxxx Xxxxx
------------------------------
General Partner
Nebraska Book Company, Inc.
By: /s/ Xxxx X. Xxxx
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Vice President
