AMENDMENT TO COMMERCIAL
LEASE
This Amendment to
Commercial Lease (“Amendment”) is made this 14th day of
August, 2007, by and between Jerry L. Helmer and Ruthann Helmer,
husband and wife, whose address is 7171 E. Michigan Avenue, Saline,
Michigan 48176, hereinafter called “Landlord,” and
Mercantile Bank of Michigan, a Michigan banking corporation, whose
address is 310 Leonard Street NW, Grand Rapids, Michigan 49504,
hereinafter called “Tenant.”
On or about
July 13, 2005, Landlord and Tenant entered into a Commercial
Lease (“Lease”) for property located in the City of Ann
Arbor, County of Washtenaw, and State of Michigan, whereby Tenant
leased from Landlord an approximately 10,000 square foot building
(the “Premises”).
Landlord and
Tenant agree that Tenant may construct for its use a building
addition which will be attached to the current building. The plans
for the addition shall be approved by Landlord, whose consent shall
not be unreasonably withheld, delayed, or conditioned. The building
addition to be constructed by Tenant shall have approximately 4,900
square rentable feet, and Tenant shall pay all costs related to
construction of the Additional rental space and site work. Tenant
agrees that if it is to construct the Additional Rental Space, it
will commence construction by June 30, 2010; if Tenant fails
to meet that deadline, Tenant will not have the right to construct
the Additional Rental Space, without written approval from
Landlord.
In consideration
of Tenant constructing the Additional Rental Space and enlarging
the rentable building space on Landlord’s property, which
shall, after the term of the Lease, become the property of the
Landlord, Landlord agrees to extend the original term of the Lease
and adjust the rent.
The purpose of
this Amendment is to amend the provisions of the Lease to provide
for the possible construction of the Additional Rental Space and if
so, to adjust the term of the Lease and the payment of rent by the
Tenant.
The parties agree
to the following for which there is adequate
consideration:
1. Paragraph 2
of the Lease shall be deleted in its entirety and replaced with the
following:
a. The term of the
initial Lease for the Premises, without the Additional Rental
Space, is for five (5) years ending June 30,
2010.
b. If Tenant
timely commences construction on the Additional Rental Space timely
(i.e., by June 30, 2010), then paragraph 2a shall not apply
and there shall be a new lease term for Tenant’s occupancy of
the Premises and the Additional Rental Space, which collectively
shall be referred herein to as the “Leased Premises.”
Thus, the Leased Premises shall mean the current Premises plus the
Additional
Rental Space
that Tenant builds. The new term for the lease of the Leased
Premises shall be for ten (10) years and shall commence upon
the earlier of (1) the date on which Tenant has obtained an
occupancy permit to occupy the Additional Rental Space from the
City of Ann Arbor, or (2) January 11, 2011 (the
“Commencement Date”). Thus, the Commencement Date shall
occur not later than Janaury 1, 2011, even if the Tenant has not
then obtained an occupancy permit for the Additional Rental Space
by that date. All references to lease term set forth in this
Amendment shall refer to the new ten (10) year term and all
Renewal Periods.
c. If Tenant fails
to commence physical construction of the Additional Rental Space by
June 30, 2010, then the Tenant shall not have the right to
construct the Additional Rental Space, and there shall not be a new
lease term for the Premises, and thus the Lease for the Premises
will end on June 30, 2010, but Tenant shall have the right to
the three (3) Renewal Periods set forth below.
d. Each
“Lease Year” shall be a twelve (12) month period
during the initial or new term of this Lease and during any Renewal
Period.
2. Paragraph 3
of the Lease shall be deleted in its entirety and replaced with the
following:
3. Option to
Renew . Tenant shall have the option to renew
|
