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Exhibit 10AN
SUBLEASE
THIS SUBLEASE is made this 16th day of February 1995, between HOUSEHOLD Bank,
f.s.b. (hereinafter called "Landlord"), Prospect Heights, Illinois and Xxxxxx
National Bancorp Inc., (hereinafter called "Tenant").
WITNESSETH, THAT:
1. DESCRIPTION. Landlord leases to Tenant the following described premises,
(hereinafter termed "Premises"), on the terms set forth herein to be used
and occupied only for the purposes as permitted under the Xxxxxxxxx, and
for no other purpose whatsoever without Landlord's prior written
approval, in the City of Rockville, County of Xxxxxxxxxx, and State of
Maryland, consisting of approximately 2,151 square feet of second floor
space and commonly known as Xxxxx 000 0000 Xxxxxxxxx Xxxxxxxxx Xxxxxxxxx,
Xxxxxxxx 00000. The location of the floor space leased hereunder is
outlined in red and is, together with the dimensions of the space set forth
on the Layout Plat, attached hereto and made a part hereof as Exhibit 1.
2. TERM. Tenant shall occupy the Premises from the commencement date, and
ending November 30, 1998. Landlord and Tenant shall duly execute a
commencement letter setting forth the actual commencement upon Tenant's
occupancy.
The foregoing notwithstanding, this sublease is contingent upon Tenant
obtaining all necessary regulatory and other approvals and licenses
required in connection with its intended operation of a mortgage banking
business (including residential mortgages) ("Regulatory Conditions").
Tenant shall commence the licensing/approval process promptly following the
full execution hereof and shall use diligence in completing same. Each of
Landlord and Tenant shall have the right to terminate this sublease by
written notice to the other in the event that Tenant has not notified
Landlord, on or before sixty (60) days following Tenant's receipt of two
fully executed originals hereof, that the Regulatory Conditions have been
satisfied or waived.
3. BASE RENT. Tenant, in consideration of this lease, covenants to pay the sum
of $2,486.20 in equal monthly installments on the first day of each month
of the term to Landlord at:
Household Bank, f.s.b.
[1352 A Charwood Road] 0000 Xxxxxxx Xxxx
[P.0 Box 739] Prospect Heights, IL
[Hanover, Maryland 21076] 6007
[Attn: Property Management] Attn: Leasing, License
& Contracts
Rental commencement for this lease will begin effective Sixty days (60)
after the term commencement date. Base rental is subject to increase
effective December 1 of each calendar year. Said increase shall be based
upon 30% of the CPI-W increase from the previous year.
4. SECURITY DEPOSIT. Tenant agrees to pay Landlord the sum of $2,486.20 upon
execution of this lease. Landlord shall apply $2,486.20 towards the first
month's rent.
5. ASSIGNMENT OR SUBLETTING. Tenant shall not voluntarily or involuntarily
sublet, assign or transfer this lease; the Premises, or any part thereof
without Landlord's and Overlandlord's prior written consent.
Landlord's consent shall not be unreasonably withheld, conditioned or
delayed, [and shall be deemed given if not denied by written notice
received by Tenant within fifteen (15) business days following Landlord's
receipt of Tenant's written]
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request thereof.] Landlord shall use all reasonable efforts to promptly
obtain any required Overlandlord consent.
6. XXXXXXXXX. This sublease is subject and subordinate to all terms,
conditions and covenants of the Xxxxxxxxx (other than paragraphs 2, 3,
8.4, 31, and 32) and its amendments between Building No. 7 Associates, a
Maryland Joint Venture as Landlord (hereinafter called "Overlandlord"),
to Household Bank, f.s.b. as Tenant for a term beginning December 1, 1993,
and ending November 30, 1998, and is not effective until written consent of
Overlandlord is hereto obtained. A copy of the Xxxxxxxxx is attached
hereto and made a part hereof as Exhibit 2. Landlord will diligently pursue
obtaining Overlandlord's approval as soon as practical. Notice of
Landlord's receipt of Overlandlord's approval will be provided to Tenant
upon full execution of this sublease if then in hand, or within 5 days of
its receipt if later obtained.
Landlord shall use all reasonable efforts to promptly obtain any required
Overlandlord consents, approvals, or the like at any time requested by
Tenant (e.g., alterations). Landlord shall not modify or otherwise take or
omit to take any action under the Xxxxxxxxx which would have an adverse
impact upon Tenant's use and occupancy of the Premises for the term, and
according to the terms, herein demised. Landlord agrees at Tenant's request
to enforce the terms of the Xxxxxxxxx or, if requested by Tenant, Tenant
shall have the right to enforce same in the name if Landlord (Landlord
hereby designating Tenant as its agent for such purpose). Except as
otherwise expressly and directly provided in this Sublease, all consent,
approvals and the like required from Landlord hereunder shall not be
unreasonably withheld, conditioned or delayed and shall be deemed given if
not denied by written notice received by Tenant within fifteen (15)
business days following Landlord's receipt of Tenant's written request
therefor.
7. TENANTS ALTERATIONS. Intentionally omitted.
8. CONDITIONS OF PREMISES. Taking possession of Premises by Lessee shall be
evidence against Tenant that the demised Premises were in good and
satisfactory condition when possession was made.
9. TERMINATION. At the end of this lease by lapse of time or otherwise, Tenant
shall yield up immediate possession of the Premises and all equipment
located therein to Landlord, except those fixtures which Tenant has the
right to remove pursuant to Paragraph 19 of this lease, all in a clean and
sightly condition and in good working order and repair, normal wear and
tear excepted.
10. MAINTENANCE, SERVICES, UTILITIES, REPAIRS. During this lease, the party as
designated below, shall, at its sole expense, pay all of the charges for
and perform, supply, repair and replace the items in the following list:
(Insert "Tenant", "Landlord" or "Overlandlord")
A. Gas or Fuel Oil Overlandlord
B. Electricity Overlandlord
C. Water Overlandlord
D. Sewer Overlandlord
E. Janitorial Service Overlandlord
F. Exterior Window Washing Overlandlord
G. Trash Removal Overlandlord
H. Parking and Common Area Overlandlord
Cleaning, Repair, Snow
Removal and Lighting
I. Sidewalk - Cleaning, Snow Overlandlord
Removal and Repair
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J. Entrance, Stairway, Hall, Overlandlord
and Restrooms Cleaning,
Repair and Decorating
K. Furnace/Heating Equipment Overlandlord
Maintenance, Repairs,
Component Replacement
L. Air Conditioning/Ventilation Overlandlord
Equipment - Maintenance,
Repairs, Component
Replacement
M. Elevator Service Overlandlord
In addition to the above designation, Overlandlord shall provide routine
maintenance to the Premises, to all glass in windows, doors and partitions
in which the Premises are located, and to all equipment and fixtures
leading to the Premises. Tenant shall promptly repair all damage to the
Premises, including Tenant's leasehold improvements, to their condition
immediately preceding such damage. Tenant shall maintain all portions of
the Premises in habitable condition during the lease term. Landlord shall
not be responsible for any repairs to the premises or equipment contained
therein except as provided herein.
11. FIXTURES. At the termination of this lease, Tenant shall be obligated to,
and shall, remove all its fixtures and furniture installed by Tenant;
and Tenant shall repair any damage to the walls, floors or ceilings
resulting from the removal of such fixtures. Tenant's obligation to
repair any such damage shall include the requirement to neatly fill in
or patch any holes left in floors, walls, or ceilings by such removal,
or in Tenant's discretion, to replace individual floor or ceiling
tiles, using reasonable efforts to match them in appearance.
12. SIGNS. Intentionally omitted.
13. COVENANT AGAINST LIENS. Tenant agrees not to permit any mechanics or other
lien to be placed against the Premises or the land or building where the
Premises are located. If any such lien is placed, however, Tenant will
promptly cause it to be removed.
14. LANDLORD'S REMEDIES. In the event of (1) the filing of a petition by or
against Tenant under the Bankruptcy Act; or (2) the appointment of a
receiver or trustee for Tenant or his property; or (3) the making by Tenant
of an assignment for the benefit of creditors; or (4) the nonpayment of the
rent and the continuance of such nonpayment for more than five (5) days
following Tenant's receipt of written notice thereof from Landlord; or (5)
the breach of any covenant in this lease, and the continuance of such
breach for more than twenty (20) days following Tenant's receipt of written
notice thereof from Landlord (except that if Tenant has commenced cure of
such breach within such twenty (20) day period and thereafter diligently
prosecutes same, then such twenty (20) day period shall be extended for
such reasonable additional time as Tenant needs to complete same), Landlord
shall have the option to terminate Tenant's right to possession of the
Premises effective upon the service of written demand therefore on Tenant;
and if Landlord so elects, but not otherwise, this lease shall terminate on
service of written notice thereof on Tenant. Notwithstanding anything
contained herein to the contrary, Landlord agrees not to exercise any
remedy to which it is entitled under this lease or by law in the event of
any default of Tenant, until Landlord shall have given tenant notice in
writing specifying wherein Tenant has made default, and Tenant shall have
failed to remedy such default within a period of Ten (1O) days after the
date of such notice. Upon termination of Tenant's right of possession as
aforesaid,
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whether this lease shall be terminated or not, Tenant agrees to surrender
possession immediately and hereby grants to Landlord full license to enter
into and upon said Premises, to take possession thereof with or without
process of law, and to remove Tenant or other who may be occupying the
Premises. Landlord may use such force in removing Tenant and other
occupiers as may reasonably be necessary and Landlord may repossess himself
of Premises, but said entry shall not constitute a trespass nor forcible
entry or detainer. The acceptance of rent, as it falls due or after any
knowledge of breach hereof by Tenant, shall not be construed as a waiver of
any right of Landlord or as an election not to proceed under the provisions
of this lease or to enforce any other remedies available to landlord. Any
holding over by Tenant shall constitute a month-to-month tenancy only at a
monthly rental equal to one and one half (1 1/2) times the BASE RENT
specified in Paragraph 3 of this lease. Tenant shall pay upon demand all
the Landlord's reasonable costs, including the reasonable fees of counsel,
incurred in enforcing Tenant's obligations hereunder.
15. NO RESERVATION OF PREMISES. Submission of this instrument for examination
does not constitute a reservation of or option for the Premises and this
instrument does not become effective as a lease or otherwise until fully
executed and delivered by both Landlord and Tenant and approved in writing
by Overlandlord.
16. NONDISTURBANCE. During the term of this lease, Tenant shall use the
Premises so that there is no noise, odor, vibration, heat gain or loss,
debris or obstruction that, violates the Xxxxxxxxx. If within fifteen (15)
days after notice from Landlord that any provision of this Nondisturbance
Clause is being violated by Tenant, Tenant does not end such violation, or
cause same to be ended, Landlord shall have the option to terminate
Tenant's right to possession of the leased Premises as provided in
Paragraph 14 hereof.
17. TENANT'S INSURANCE. During the term of this lease, Tenant shall provide and
keep in force for the benefit of Landlord and of Tenant, as their
respective interests may appear, general liability policy in standard form
protecting Landlord against any and all liability occasioned by accident
or disaster resulting in injury or loss to property or injury or death to
persons arising out of the use and occupancy of the Premises. Such policy
shall be written by a good and solvent insurance company in the minimum
amount of $500,000 per occurrence. Tenant must provide evidence of
insurance naming Landlord as additional insured via a certificate or copy
of the policy, which must include the insurer's agreement to provide
Landlord at least 30 days prior written notice of cancellation or
expiration. If Tenant carries a blanket liability policy or policies
protecting against accident or disaster at various locations, delivery by
Tenant to Landlord or a certificate issued by the insurance company
writing such policy stating that the Landlord is protected thereunder to
the extent hereinabove specified shall be deemed compliance by Tenant with
the foregoing requirements; however, the above mentioned 30 day notice
provision must be complied with.
Landlord shall carry similar insurance and shall maintain "all-risk"
property insurance upon the furniture and telephone equipment described in
Paragraph 19 hereof. Each of Landlord's and Tenant's insurance policies
shall provide for waiver of subrogation. Anything to the contrary contained
herein notwithstanding, each of Landlord and Tenant hereby waive and
release the other from and against any and all claims, causes in action
and/or expense for which such person is or would be insured by insurance
policies maintained or required to be maintained hereby (or otherwise
maintained by such person). In addition, Tenant shall have no liability to
Overlandlord or to Landlord for any matter which is
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customarily insured or insurable under policies of insurance comparable to
those typically carried by large commercial owners of properties similar to
the Property. Tenant shall be responsible for any increase or continued
increase in Landlord's insurance premiums resulting from any action and/or
expense due to Tenant's negligence.
18. SUCCESSORS. This lease shall benefit and bind the heirs, executors,
administrators, successors and assigns of both Landlord and Tenant.
19. TELEPHONE SYSTEM. Tenant shall be allowed the use of Landlord's existing
phone system and furniture for which tenant shall maintain and provide all
necessary repairs throughout the term. Ownership of said phone system and
furniture will be with Tenant and Tenant shall be allowed to remove said
phone system at the expiration of the lease term.
20. NOTICES. All notices under this lease shall be in writing and mailed by
registered or certified mail, or sent by other commercial courier or
overnight delivery service, in all such cases against receipt, addressed to
Tenant at 0000 X Xxxxxx, X.X., Xxxxxxxxxx, X.X. 00000, Attention:
President, with a copy to Xxxx X. Xxxxxx, Esq., 000 Xxxxxxxxxx Xxxxxx,
X.X., Xxxxx 000 Xxxxx, Xxxxxxxxxx, X.X. 00000, and to Landlord at 0000
Xxxxxxx Xxxx, Xxxxxxxx Xxxxxxx, XX 00000, Attn: [Assistant Vice
President], Leasing, [&] Licensing and Contracts. Any such notice shall be
deemed given when received.
IN WITNESS WHEREOF, Landlord and Tenant have executed this lease as of
the day and year first above written.
WITNESS/ATTEST: LANDLORD
HOUSEHOLD BANK, f.s.b.
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/S/ XXXX XXXXXXXXX By: /S/ X. X. XXXXXXX
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Xxxx Xxxxxxxxx, Assistant X. X. Xxxxxxx, Authorized Agent
Secretary
WITNESS/ATTEST: TENANT
[SIG] XXXXXX NATIONAL BANCORP, INC.
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By: /S/ XXXX X. XXXXX, XX
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XXXX X. XXXXX, XX
