Lease Agreement

LEASE AGREEMENT


This Lease Agreement made and entered into this _____ day of ________, 1999, by and between C. Ronald Dufina and Mary McCourt-Dufina, of PO Box 495, Mackinac Island, Michigan, herein referred to as "Lessor", and North Country Bank & Trust, a Michigan Banking Corporation, of 130 South Cedar, Manistique, Michigan, herein referred to as "Lessee".


Witnesseth:


Whereas, Lessor is the owner of certain premises located in the City of Mackinac Island, Mackinac County, Michigan, and wishes to let the same; and


Whereas, Lessee desires to lease said premises from Lessor; and


Whereas, the parties hereto desire to enter into a lease agreement defining their respective rights, obligations and liabilities relating to the premises, and to one another;


Now, therefore, in consideration of the mutual covenants and promises contained herein, it is agreed:


Section I: Description and Use of Premises


Lessor does hereby let to Lessee the following generally described premises:


Certain premises located on the ground floor of that building known as "The Balsam Shop" a/k/a "The Old Village Inn", located on Parcel 2, Lot 105, Assessor's Plat No.3, City of Mackinac Island, Michigan, consisting of approximately 400 square feet and referred to as "Balsam Unit No.3".


The demised premises are located on commercial property presently zoned "C" Commercial, by virtue of Ordinance No.278 of the Ordinances of the City of Mackinac Island, and Lessee agrees to conduct its operations in conformity therewith.


Section II: Term


The term of this lease shall be for a period of three (3) years, commencing on March 1, 2000, and terminating on February 28, 2003, unless sooner terminated by the implementation of further provisions of this Agreement.


Lessee may renew this lease for two additional three- year terms at an annual rent calculated according to Section III of this lease. Lessee shall inform Lessor in writing at least sixty (60) days prior to the expiration of the term of this lease of Lessee's intent to exercise this option.


Section III: Rent


The rent for the first year of the term of this Lease shall be the sum of Eighteen Thousand, Seven Hundred Fifty-Two and 40/100 Dollars ($18,752.40), payable as follows:


$3,125.40 on or before March 1, 2000;
$3,125.40 on or before Aprill, 2000;
$3,125.40 on or before May 1, 2000;
$3,125.40 on or before June 1, 2000;
$3,125.40 on or before July 1, 2000; and
$3,125.40 on or before August 1, 2000.


The annual rent for the remaining two years of the term of this Lease shall be adjusted on March lst annually in accordance with any change in the Consumer Price Index, Midwest Urban Consumers (a/k/a North Central Region) as of the preceding December 31, using December 31, 1999 as base 100.


Section IV: Repa ...