1
EXHIBIT 10.17
LEASE AGREEMENT
This Lease, made by and between XXXXXXX INVESTMENTS, LLP ("Lessor")
and STATE FINANCIAL BANK - WATERFORD, a Wisconsin corporation ("Lessee").
RECITALS:
A. Lessor is the record title owner of a parcel of real estate
situated in the City of Burlington, Racine County, Wisconsin (the "Property"),
more particularly described on Exhibit A attached hereto; and
B. There is situated on the Property a building (the "Building")
and other improvements which Lessor is remodeling and refurbishing into
separate rental units as described on the plot plan attached hereto as Exhibit
B and made a part hereof.
AGREEMENT
NOW, THEREFORE, Lessor, for and in consideration of the rents to be
paid by Lessee and the conditions, provisions, reservations and stipulations
hereinafter contained, does hereby lease to Lessee and Lessee hereby takes from
Lessor those certain premises shown as Units 1 and 2 on the plot plan attached
hereto as Exhibit B together with drive-up facilities substantially as shown on
the plan prepared by Torke, Wirth, Pujara, Ltd., dated November 18, 1996,
attached hereto as Exhibit C and more particularly referred to herein
(hereinafter the "Premises") on the terms and conditions hereinafter set forth:
1. Lessor's Work and Construction. Upon complete execution of
this Lease Agreement by Lessor and Lessee ("the Lease Date"), Lessor, at
Lessor's sole cost and expense, shall proceed forthwith and with reasonable
diligence to perform such work and construction as is set forth on Exhibit D
attached hereto and made a part hereof; which work shall be completed no later
than February 15, 1997 so as to allow Lessee possession, except for sidewalks
(Item 4 on Exhibit D) which will be installed as weather permits in spring
1997.
2. Lessee's Work and Construction. With the exception of the
work items specifically enumerated as Lessor's work and construction, Lessee
shall, at its own cost and expense, perform all work and supply all
installations and fully equip the Premises with trade fixtures, furniture,
furnishings, fixtures and any equipment or other items of personal property
necessary for the completion of the Premises and the proper operation of
Lessee's business, including the drive-up facilities. Lessee shall not install
any equipment other than trade fixtures, equipment and personal property
without first obtaining Lessor's written approval of the contractor, the plans
and the specifications therefor, which approval shall not be unreasonably
withheld, conditioned, or delayed. However, if the Lessor fails to approve
Lessee's initial plans as presented to Lessor no later than December 31, 1996,
Lessee may thereupon terminate this Lease Agreement by written notice to
Lessor. The approval by Lessor of such plans and specifications shall not
constitute the assumption of any liability on the part of Lessor for their
accuracy or their conformity with building code requirements and Lessee shall
be solely responsible for such plans.
3. Term. The term of this Lease shall be for ten (10) years
("Lease Term"), commencing on January 1, 1997, ("Commencement Date"), and
ending on December 31, 2006 ("Expiration Date").
4. Possession of Premises. Lessor shall deliver possession of
the Premises to Lessee on the Commencement Date.
A. Delay on Possession. If Lessor cannot deliver
possession of the Premises to Lessee on Commencement Date, Lessor shall not be
subject to any liability, nor shall such failure affect the validity of this
Lease
1
2
of the obligations of Lessee, but Lessee shall not be obligated to pay rent
until possession of the Premises is tendered; provided that the Lease Term
shall remain as listed in paragraph 3 above, with the Commencement Date being
the date Lessee takes possession and the Expiration Date being extended
accordingly.
B. Early Possession. If Lessee occupies the Premises
before the Commencement Date, such occupancy shall be subject to all provisions
hereof, such occupancy shall not advance the Expiration Date.
C. Holding Over. Any holding over after the expiration
of the Term with the consent of the Lessor shall be construed to be a tenancy
from month-to-month and shall be on the terms and conditions herein specified
so far as applicable.
5. Lessee's Option to Renew and Extend.
A. First Renewal Period. If Lessee, by a notice in
writing to Lessor at least six (6) months prior to the Expiration Date shall
have so elected, and if Lessee is not on such date in default under any of its
obligations hereunder, then and at the expiration of the term hereby granted,
this Lease shall be renewed and extended for a further term of five (5) years
commencing on the first day after the Expiration Date on the same terms and
conditions as herein provided (except for Base Rent and this option to renew
and extend).
B. Second Renewal Period. If this Lease shall have been
renewed and extended for such first renewal and extension period and if Lessee,
by a notice in writing served upon Lessor at least nine (6) months before the
Expiration Date of the first extended term shall have so elected, and if Lessee
is not on such date in default in any of its obligations hereunder, then and at
the expiration of such first renewal and extension period, this Lease shall be
again renewed and extended for a further term of five (5) years commencing on
the first day after the Expiration Date of the first extended term on the same
terms and conditions as herein provided (except for Base Rent and this option
to renew and extend).
C. Additional Lease Period/Right of First Refusal. If this
Lease shall have been renewed and extended for such second renewal and
extension period and if Lessee, by a notice in writing served upon
Lessor at least six months before the expiration date of the second
extended term shall express a desire to extend the lease term and if
Lessee is not on such date in default in any of its obligations
hereunder, the parties shall attempt to negotiate an extension of the
lease term on such terms and conditions as they may mutually agree.
If the parties are unable to reach agreement on the terms and
conditions for extension of the lease term and should Lessor elect to
lease the Premises to a third party, Lessor shall notify Lessee in
writing of the lease terms and conditions for which Lessor proposes to
lease the Premises after the expiration of the second renewal period.
After receipt of such notice, Lessee shall have fifteen days in which
to notify Lessor in writing of Lessee's desire to lease the Premises
for such rental and on such terms. If Lessee does not so notify
Lessor, Lessor may lease the Premises to any other third party on such
terms and on such rental.
6. Base Rent. Lessee shall pay to Lessor as base rent for the
interior premises consisting of 6264.5 square feet the sum of $5,220.42 per
month, for the first five (5) years of the Lease term and thereafter the sum of
$5,742.46 per month. In addition, Lessee shall pay as base rent for the
exterior of the Premises, consisting of approximately 1,100 square feet under
the canopy to be constructed by Lessee, the sum of $458.33 per month for the
first five (5) years of the Lease term and $504.17 per month thereafter.
Payments of the full amount of monthly rent shall commence on January 1, 1997
and shall continue on the first day of each month thereafter throughout the
balance of the term. In the event the drive-in improvements to be installed by
Lessee extend to areas beyond those areas which are situated directly under the
canopy to be constructed by Lessee, the rent for the exterior of the Premises
shall be increased to take into account the additional area occupied by such
improvements based upon $5.00 per square foot per year for the first five years
of the lease term and $5.50 per square foot per year thereafter. Likewise, if
the canopy and those improvements occupy less than 1,100 square feet, exterior
rent shall be adjusted accordingly.
A. Place of Payment. All payments of rent shall be made
to Lessor in care of:
2
3
Mangold Investments, LLP
0000 Xxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
or at such other place as Lessor may designate in writing.
B. Interest/Late Payment Charge. Lessee acknowledges
that late payment by Lessee to Lessor of rent or other sums due under
this Lease Agreement will cause Lessor to incur costs not contemplated
by this Lease Agreement, the exact amount of which would be extremely
difficult and impractical to ascertain. Such costs include, but are
not limited to, processing and accounting charges and late charges
that may be imposed on Lessor by the terms of any mortgage covering
the Leased Premises. In the event Lessee should fail to pay any
installment of rent or any other sum due under this Lease Agreement
within ten (10) days after such sum is due, Lessee shall pay to
Lessor, as additional rent, a late charge equal to $100.00. Waiver of
the late charge with respect to any installment or sum shall not be
deemed to constitute a waiver with respect to any subsequent
installment or sum so due. In the event any amount so due is
delinquent for a period in excess of thirty (30) days, an additional
late charge at the rate of 12 percent per annum on the amount so
overdue shall be paid to Lessor for the period of delinquency in
excess of thirty (30) days.
7. Adjustment to Base Rent. Commencing with the eighth year of
the Lease Term and every two (2) years thereafter during the Initial or
Extended Lease Term, the base rent shall be adjusted for the next two (2) Lease
years to reflect any increase in the cost of living, using the United States
Department of Labor, Bureau of Labor Statistics, Consumer Price Index, All
Urban Consumers, Small Metropolitan Areas (North Central Region), All Items and
shall be applied in the following manner: The index for November 1 before the
new Lease year in which the adjustment is to be made shall be determined which
is herein called the "New Year Index" and the index for November 1, 2001 shall
be determined which is herein called the "Base Year Index" and the new rental
shall be that amount determined by multiplying the base rental (5,742.46 +
504.17 or as adjusted under paragraph 6 hereof) by the New Year Index and
dividing the product thus obtained by the Base Year Index, but in no event
shall the rental for any Lease year be less than the rental for the previous
Lease year and in no event, shall the percentage increase in the cost of living
computation exceed two and one-half percent (2 1/2%) for any one-year period.
Should the said Consumer Price Index be terminated, then a mutually agreeable
price index or method of computing the increase in the cost of living shall be
applied.
8. Additional Rent. In addition to the base rent required
herein, Lessee shall pay as additional monthly rent to Lessor at the same place
and as payment of base rent Lessee's proportionate share of the following:
-- Electric, gas, water, sewer and other utility charges for
common areas which are not separately metered to various
tenants on the Premises.
-- Real property taxes and general and special assessments levied
and assessed against the property.
-- Premiums for property insurance and public liability insurance
to be maintained by Lessor.
-- Common area and maintenance charges, including all sums
expended by Lessor for maintenance and operation of the common
areas of the Property. Costs for normal maintenance and
operation of the common areas shall include, but not be
limited to the following: ice and snow removal, trash pick up
and removal, maintenance and cleaning of building exterior and
entry vestibules, repairs to building improvements (excepting
costs of capital improvements to the building, depreciation,
charges, interest and principal payments on the mortgage, if
any, and expenditures for which Lessor has been reimbursed)
costs of maintenance of the "common" free-standing signs and
other costs necessary in Lessor's judgment for the maintenance
of the common areas and the building.
A. Computation of Pro Rata Share. For purposes of this
Lease, Lessee's pro rata share shall be equal to 37.83 percent.
3
4
B. Pro Ration for Partial Year. Any costs or changes
that cover a period not within the term of this Lease shall be
prorated.
C. Initial Additional Rent. The initial monthly
additional rent for all items included in this paragraph 8 shall be
$1,305.10.
D. Adjustment of Additional Rent. Within sixty (60)
days after the end of each calendar year, Lessor shall furnish Lessee
with a statement of the actual amount of Lessee's proportionate share
of such costs and expenses for such period. If the total amount due
from Lessee for the year on the statement exceeds the aggregate of all
amounts previously paid to Lessor during the calendar year as
additional rent, Lessee shall pay to lessor the difference between the
amount paid by Lessee and the actual amount due within sixty (60) days
after the furnishing of each such statement. If the total amount paid
by Lessee under this paragraph for any such calendar year shall exceed
the actual amount due from Lessee for any such calendar year, the
excess shall be credited against the next installment or installments
of rent due from Lessee to Lessor. The amount of additional rent to
be paid by Lessee to Lessor shall be adjusted annually based upon a
statement from the property manager setting forth the estimated costs
and charges to be incurred by Lessor, upon which the additional rent
is based for the next succeeding calendar year (subject to review by
Lessee of all documentation of Lessor upon which sum computation of
additional rent is based).
E. Nonpayment. In the event of nonpayment of all or any
portion of such additional rent, Lessor shall have the same rights and
remedies as provided in this Lease agreement for failure of Lessor to
pay rent.
9. Use. The Premises shall be used and occupied only as a
banking facility and for no other purpose without Lessor's prior written
consent. Lessee shall not use or allow the use of the Premises for the sale of
products or the conduct of business customarily carried on by Xxxxxxx
Insurance, Inc. as a general insurance agent. Notwithstanding this provision,
Lessee shall have the right to use the Premises for the sale of its current
product line including annuities, long-term care insurance, credit life,
accident and health insurance, life insurance and disability insurance.
A. Compliance with Building Rules and Regulations.
Lessor shall have the right to create and amend rules and regulations
which would apply to all building tenants, necessary or desirable to
insure the safety, care and cleanliness of the building and parking
areas and the preservation of order and parking rules and regulations.
Any rules and regulations shall be set forth in writing and shall be
given to Lessee, who shall thereafter comply with and conform to the
same; provided that no such rules and regulations shall interfere with
normal business operations of Lessee.
B. Exclusivity. As long as the Lessee occupies space
under the terms of this Lease or any renewal or extension thereof or
under any written modification thereof, Lessor shall not permit or
rent to any other tenant providing banking services including, but not
limited to savings and loans or credit unions.
10. Utilities. Commencing on January 1, 1997, Lessee shall pay
all charges for gas, electric current, water and sewer attributable to the
lease space.
11. Repairs, Maintenance, Alterations, Improvements and Fixtures.
A. Maintenance by Lessor. Lessor, at Lessor's sole
cost, shall keep and maintain the foundations, exterior walls, roof
and structural portions of the walls of the Premises in good condition
and repair, except for repairs thereto as may be required by reason of
the acts or negligence of Lessee, its employees, agents, invitees,
licenses and contractors. Lessor shall keep and maintain in good
condition and repair all portions of the building not leased and
demised to tenants thereof, and, subject to Lessee payment of expenses
as additional rent. Lessor shall be responsible for any HVAC
maintenance or repair in excess of the Lessee's obligations provided
in paragraph B.
4
5
B. Maintenance by Lessee. Lessee shall at all times
keep and maintain the interior of the Premises, including all
partitions, doors, glass, floor coverings, fixtures, HVAC, equipment
and appurtenances whether installed or owned by Lessor or Lessee,
including drive-up facilities in good order, condition and repair and
shall do such periodic painting, decorating and cleaning of the
interior of the Premises as may be reasonably required by Lessor,
except that the Lessee shall not be obligated to pay more than
$1,000.00 per year for HVAC maintenance and repair.
C. Alterations and Improvements. Lessee shall not make,
nor permit to be made, alterations or improvements to the Premises,
unless Lessee obtains the written consent of Lessor which shall not be
unreasonably withheld. If Lessor permits Lessee to make any
alterations or improvements, Lessee shall make the same with
requirements the Lessor considers necessary or desirable. Lessee
shall promptly repair any damage to the Premises caused by any such
alterations or improvements. Any alterations or improvements to the
Premises, except movable office furniture and equipment and trade
fixtures, shall become a part of the realty and the property of Lessor
and shall not be removed by Lessee except as hereinafter set forth.
D. Notice of Defects. Lessee shall immediately give
Lessor written notice of defect or need for repairs, after which
Lessor shall have reasonable opportunity to repair same or cure such
defect. Lessor liability with respect to any defects, repairs, or
maintenance for which Lessor is responsible under any of the
provisions of this Lease shall be limited to the costs of such
repairs or maintenance or the curing of such defect.
Nothing herein shall be construed to limit the liability of either party for
damages resulting from such party's negligence or willful misconduct.
12. Signage. The parties acknowledge the Premises are part of an
integrated and uniform commercial center and that control of exterior signs by
Lessor on the Property is essential to maintain uniformity and aesthetic value
in the Property.
A. Lessor's Obligation. The parties acknowledge that
Lessor will provide a "common" free-standing sign area to include time
and temperature which will identify the Property and all Building
tenants, with each Building tenant receiving exposure thereon
consistent with its pro rata share obligation for payment of
additional rent hereunder. The Lessee shall pay the sum of $2,300.00
toward the cost of the time and temperature signage plus the cost of
Lessee's sign face. The cost of maintenance of the entire sign shall
be shared in the same manner as set forth in the provisions of this
Lease Agreement for additional rent.
B. Lessee's Signs. Lessee may not erect and maintain
any signs on the exterior of the Premises without the advance, written
consent of Lessor, which consent shall not be unreasonably withheld,
conditioned, or delayed. Such signage must be in accordance with
Lessor's specifications and contracted through a sign contractor
approved in advance by Lessor. Installation of all door and window
signage shall be subject to Lessor's advance, written approval.
13. Lessor's Insurance. Lessor shall carry insurance covering the
building and other improvements as Lessor reasonably determines from time to
time. Coverages and amounts shall be reasonably determined by Lessor, based on
coverages carried by prudent owners of comparable buildings in the vicinity.
At all times, Lessor will carry and maintain insurance coverage as follows:
A. Property Coverage. Lessor shall carry all-risk
property insurance covering the building, its equipment and parking
areas in an amount not less than the full insurable replacement value
sufficient to cover repair or replacement of the damaged property
without deduction for depreciation.
B. Liability Insurance. Lessor shall at all times carry
comprehensive public
5
6
liability insurance and property damage insurance against claims on
account of bodily injury, personal injury, property damage and
completed operations upon or about or relating to the exterior of the
building and parking areas (with limits of at least $1 million per
bodily injury [including death] and property damage liability).
14. Lessee's Insurance; Indemnity.
A. Property Insurance. Lessee shall be responsible, at
its own expense, for obtaining property insurance for all contents
located in the Premises, together with coverage for any fixtures,
equipment, or work done by Lessee in the Premises, and it is
understood that the insurance carried by Lessor does not cover the
risk of loss or damage to Lessee's property, equipment, improvements,
fixtures, or loss of income.
B. Liability Insurance. Lessee shall in force and
effect comprehensive public liability insurance in insurance companies
approved by Lessor (with a rating of A or greater by A.M. Best)
insuring and naming Lessor, Lessee and any other parties reasonably
designated by Lessor against injury to property, persons, or loss of
life arising out of the use or occupancy of the Premises, with limits
of at least $1 million per bodily injury (including death) and
property damage liability. Such policy of insurance shall contain
provisions preventing its cancellation, discontinuance, or alteration
without at least thirty (30) days prior written notice to Lessor.
C. Workmen's Compensation. Lessee shall maintain
worker's compensation and employer's liability insurance as required
by the State of Wisconsin.
D. Umbrella Liability Coverage. Lessee shall be
responsible, at its own expense, and shall keep in full force and
effect a comprehensive "umbrella" policy of liability insurance in an
insurance company approved by Lessor (with a rating of A by A.M. Best)
against injury to property, persons, or loss of life arising out of
use or occupancy of the Premises with limits of at least $5 million
for each occurrence and $5 million in aggregate, with a self-insured
retention no greater than $10,000.00. Coverage must be in excess of
all other required insurance coverages hereunder. Such policy of
insurance shall contain provisions preventing its cancellation,
discontinuance, or alteration without at least thirty (30) days prior
written notice to Lessor.
E. Waiver of Subrogation. Lessor and Lessee hereby
release each other and each other's employees, agents, customers and
invitees from any and all liability for any loss, damage, or injury to
person or property occurring in, on or to the Premises, improvements
to the building of which the Premises are a part, or personal property
within the building, by reason of fire or other casualty which are
covered by applicable standard fire and extended coverage and
insurance policies. Because the provisions of this paragraph will
preclude the assignment of any claim mentioned herein by way of
subrogation or otherwise to an insurance company or any other persons,
each party to this Lease shall give to each insurance company which
has issued to its policies of fire and extended coverage and insurance
notice of the terms of the mutual releases contained in this
paragraph, and have such insurance policy properly endorse, if
necessary, to prevent the invalidation of insurance coverages by
reason of the mutual releases contained in this paragraph.
F. Certificate of Insurance Coverage. Prior to
commencement of the Lease Term, Lessee shall furnish the other party
with a certificate evidencing the insurance coverage required
hereunder.
G. Failure to Comply. If Lessee fails to comply with
the aforesaid insurance requirements, the other party may obtain such
insurance and keep the same in force and effect and the party failing
to comply shall pay the other party the cost thereof, on demand.
H. Indemnification of Lessor. Lessee shall indemnify
and hold harmless Lessor from and against all claims arising from
Lessee's use of the Premises, or from the conduct of Lessee's
6
7
business or from any activity, work, or things done, permitted or
suffered by Lessee in or about the Premises and shall further
indemnify and hold Lessor harmless from and against any and all claims
arising from any breach or default in the performance of any
obligation on Lessee's part to be performed under the terms of this
Lease, or arising from any intentional tort or negligence of the
Lessee, or any of Lessee's agents, contractors, or employees, and
against all costs, attorney fees, expenses and liabilities incurred in
the defense of any such claim or any action or proceeding brought
thereon.
I. Indemnification of Lessee. Lessor shall indemnify
and hold harmless Lessee against any and all claims arising from any
negligent, willful, or intentional conduct by Lessor, its employees,
agents, or contractors, with regard to its acts, or inaction in the
performance of Lessor's obligations under the terms of this Lease or
arising from any negligent or intentional tort of Lessor, or any of
Lessor's agents, contractors or employees and against all costs,
attorney fees, expenses and liabilities incurred in the defense of any
such claim or any action or proceeding brought thereon.
15. Access to Premises.
A. Right to Enter. Lessor and its agents shall, upon
notice of not less than 24 hours (except in the event of an emergency
when such notice is impractical), have the right to enter accompanied
by an officer of the Lessee any part of the Premises at all reasonable
times for the purposes of examining the same, showing the same to
prospective purchasers, mortgagees, or lessees and for making such
repairs, alterations, or improvements to the Premises as Lessor may
deem necessary or desirable. Lessor and its agents may enter the
Premises by any means of a master key or otherwise. Lessor shall
incur no liability to Lessee for such entry, nor shall entry
constitute an eviction or termination of this Lease, nor entitle
Lessee to any abatement of rent therefor.
B. Notice of Vacate and Joint Inspection before
Termination Date. Lessee shall give written notice to Lessor at least
thirty (30) days prior to vacating the Premises at the end of the
Lease Term and shall arrange to meet with Lessor for a joint
inspection of the Premises prior to vacating. In the event of
Lessee's failure to give such notice or arrange such joint inspection,
Lessor's inspection at or after Lessee's vacating the Premises shall
be conclusively deemed correct for purposes of determining Lessee's
responsibility for repairs and restoration.
16. Personal Property and other Taxes. Lessee shall pay before
delinquent all taxes, assessments, fees, or charges ("taxes"), including any
sales, gross income, rental, business occupation or other taxes, imposed upon
Lessee's business operation in the Premises and any taxes imposed upon Lessee's
trade fixtures, leasehold improvements, or personal property located within the
Premises. In the event any taxes are charged to the Lessor, Lessee shall
reimburse Lessor for the same as additional rent. Lessee shall have the right
to contest in good faith any such tax and to defer payment, if required, until
after Lessee's liability therefor is finally determined.
17. Damage or Destruction. The following provisions shall relate
to damage or destruction of the Premises.
A. Use of Partially Damaged Premises. In the event of
partial damage or destruction of the Premises, Lessee shall continue
to utilize the Premises for the operation of its business to the
extent that it may be practicable to do so from the standpoint of good
business as determined by Lessee.
B. Right to Terminate on Destruction of Premises where
Damage Exceeds Two-Thirds of Reconstruction Cost. Either
party to this Lease Agreement shall have the right to
terminate this Lease Agreement if, during the last twenty-four
(24) months of the term of this Lease Agreement, the Building
of which the Premises are a part are damaged to an extent
exceeding two-thirds of the then reconstruction cost of the
Building as a whole; provided that, in such an event,
termination of this Lease Agreement shall be effected by
written notice to that effect to the other party delivered
within forty-five (45) days of the happening of the casualty
causing the damage.
7
8
C. Repairs by Lessor. If the Premises shall, either
prior to the beginning of or during the term of this Lease Agreement,
be damaged or destroyed by fire or any other cause whatsoever beyond
Lessee's control, Lessor, except as otherwise specifically provided in
this Lease Agreement shall, immediately and diligently proceed to
repair or build the Premises, including any additions or improvements
made by Lessor or by Lessee with Lessor's consent, on the same plan
and design as existed immediately before the damage or destruction
occurred, subject to such delays as may be reasonably attributable to
governmental restrictions or failure to obtain materials or labor, or
other causes whether similar or dissimilar, beyond the control of
Lessor. Materials used in repair shall be nearly as like original
materials as may then be reasonably procured in regular channels of
supply.
D. Excusable Delay. Whenever a strike, act of God, or
cause beyond the power of the party affected to control caused delay,
the period of delay so caused shall be added to the period limited in
this Lease for the completion of such work, reconstruction or
replacement.
E. Reduction of Rent During Repairs. In the event
Lessee continues to conduct business during the making of repairs, the
base monthly rental will be equitably reduced in the proportion that
the unusable part of the Premises bears to the whole of the Premises.
F. No Rent if Premises Unoccupied. No rental shall be
payable while the Premises are wholly unoccupied pending the repair of
casualty or damage.
G. Repair or Replacement of Fixtures. Lessee shall, as
soon as reasonably possible, replace or repair Lessee's improvements
and fixtures in the Premises that may be damaged or destroyed by fire
or any other cause whatsoever.
X. Xxxxxx'x Obligation for Lessee's Repairs. If Lessor
is obligated to or elects to repair or restore as provided in this
Lease Agreement, Lessor shall be obligated to make repair or
restoration only of those portions of the Premises that were
originally provided at Lessor's expense, and the repair and
restoration of items not provided at Lessor's expense shall be the
obligation of Lessee. If Lessor receives proceeds in excess of the
current cost to replace those original Lessee improvements, then the
excess proceeds will be applied to the replacement of additional
improvements provided by Lessee in addition to Lessor's original
improvements.
I. Release and Liability. Upon any termination of this
Lease Agreement under any of the provisions in this section, the
parties shall be released without further obligation to the other as
of the termination date, provided Lessee shall remain liable to Lessor
for items that have accrued as of the termination date and are then
unpaid.
18. Condemnation. In the case all of the Premises, the Building
in which the Premises are located, or the common areas, or such part thereof as
shall substantially interfere with Lessee's use and occupancy thereof, shall be
taken for any public or quasi-public purpose by any lawful power or authority
by exercise of the right of appropriation, condemnation, or eminent domain, or
sold to prevent such taking, either party shall have the right to terminate
this Lease Agreement effective as of the date possession is required to be
surrendered to the taking authority. Except as otherwise provided herein,
Lessee shall not assert any claim against Lessor or the taking authority for
any compensation because of such taking, and Lessor shall be entitled to
receive the entire amount of any award with deduction for any estate or
interest of Lessee.
A. Partial Taking. In the event the amount of property and the
type of estate taken shall not substantially interfere with the
conduct of Lessee's business, and Lessor determines Lessor is
economically able to restore the Premises, the Building in which the
Premises are located, or the common areas to an operating condition
comparable to that which existed prior to the taking, Lessor shall be
entitled to the entire amount of the award without deduction for any
estate or interest of Lessee. In that event, Lessor shall restore the
Premises to substantially their same condition prior to the taking,
and proportionate allowance shall
8
9
be made to Lessee for the rent corresponding to the time during which
and to the part of the Premises of which Lessee shall be so deprived
on account of the taking and restoration.
B. Taking of Lessee's Property. Nothing contained in this
section shall be deemed to give Lessor any interest in any award made
to Lessee for the taking of personal property and fixtures belonging
to Lessee, or for moving or other costs which shall not diminish the
award to Lessor or for any relocation benefits available to Lessee by
state, federal, or any other law.
19. Lessee's Defaults and Remedies.
A. Lessee's Monetary Defaults. The occurrence of any
one or more of the following events shall constitute a material
monetary default in breach of this Lease Agreement by Lessee: Failure
by Lessee, Lessee's agent or bank to make any payment required under
this Lease Agreement as and when due, where such failure shall
continue for a period of ten (10) days after receipt of written notice
from Lessor.
B. Lessee's Non-Monetary Defaults. The occurrence of
any one of the following events shall constitute a non-monetary
default in breach of this Lease Agreement by Lessee: Failure by Lessee
to observe or to perform any of the covenants, conditions, or
provisions of this Lease Agreement, other than the making of any
payment, where Lessee shall not commence to cure for a period of
thirty (30) days after notice of such failure from Lessor or such
additional period of time as is reasonably necessary to cure such
failure, provided Lessee diligently prosecutes such cure; or vacation
or abandonment of the Premises. (Vacation and abandonment includes
any complete absence of Lessee from the Premises for thirty (30)
business days or longer.)
C. Remedies. In the event of any material monetary
default by Lessee, or any non-monetary default in effect for thirty
(30) calendar days, in addition to any other remedies available to
Lessor at law or in equity, Lessor shall have the immediate option to
terminate this Lease Agreement and all rights of Lessee under this
Lease Agreement. In the event that Lessor shall so elect to terminate
this Lease Agreement, then Lessor may recover from Lessee:
(1) Any unpaid rent that was due and owing at the
time of termination;
(2) The unpaid rent that would have been earned
from the date of termination until the time of the award, less
the amount of such rental loss that Lessee proves could
reasonably have been avoided; and
(3) From time to time, the monthly rental then
due from the time of the award less the amount of such rental
lost.
D. Re-entry and Removal of Lessee's Property. In the
event of any such default by Lessee, Lessor shall also have the right,
adhering to applicable legal processes, with or without terminating
this Lease Agreement, to re-enter the Premises and remove all persons
and property from the Premises. Such property may be removed and
stored in a public warehouse or elsewhere at the cost of or on the
account of Lessee. No re-entry or taking of the Premises by Lessor
pursuant to this section shall be construed as an election to
terminate this Lease Agreement unless Lessor gives Lessee written
notice of such intention or unless the termination of this Lease
Agreement is decreed by a court of competent jurisdiction.
E. Reletting Premises. In the event of any such default
by Lessee, Lessor shall also have the right and obligation, adhering
to applicable legal processes, with or without terminating this Lease
Agreement, to re-enter the Premises and to use its best efforts to
relet them, and Lessee agrees to pay Lessor the cost of recovering
possession of the Premises, the expense of reletting, and any other
reasonable costs or damages arising out of Lessee's default.
9
10
20. Remedies Cumulative. All rights, options and remedies of
Lessor and Lessee contained in this Lease Agreement shall be construed and held
to be cumulative, and no one of them shall be exclusive of the other. Either
party shall have the right to pursue any one or all of such remedies or any
other remedy or relief that may be provided by law, whether or not stated in
this Lease Agreement.
21. No Waiver. No waiver of any default of Lessee under this
Lease Agreement shall be implied from any acceptance by Lessor of any rent or
other payments due under this Lease Agreement or any omission by Lessor to take
any action on account of such default if such default persists or is repeated,
and no express waiver shall effect a default other than as specified in the
waiver. The consent or approval of either party to an act by the other party
shall not be deemed to waive or render unnecessary either party's consent or
approval of any subsequent similar act by the other party.
22. Cure by Lessor. Lessor or any mortgagee, at any time after
Lessee commits a default, and after having provided notice of said default to
Lessee except in case of emergency wherein the notice requirement shall be
waived, and after expiration of the applicable cure period, may cure the
default at the cost of Lessee. If Lessor or any mortgagee at any time, by
reason of Lessee's default, pays any sum or does any act that requires the
payment of any sum, the sum paid by Lessor or any mortgagee at the time the sum
is paid shall be due immediately from Lessee to Lessor or the mortgagee, and if
paid at a date later than thirty (30) days shall bear interest at the rate of
12 percent per annum from the date the sum is paid by Lessor or the mortgagee
until Lessor or the mortgagee is reimbursed by Lessee. The sum, together with
interest, shall be deemed to be additional rent.
23. Lessor's Default. Lessee shall notify Lessor promptly of any
default not by its nature necessarily known to Lessor.
A. Lessor's Right to Cure Default. Lessor shall not be
in default under this Lease Agreement unless Lessor fails to perform
its obligation within ten (10) days after notice by Lessee specifying
where Lessor has failed to perform. If the nature of Lessor's
obligation is such that more than ten (10) days are required to
perform, Lessor shall not be in default if Lessor commences
performance within ten (10) days of Lessee's notice and thereafter
pursues performance with due diligence.
B. Damages and Remedy. Except as otherwise provided
herein, Lessee's sole remedy for Lessor's default shall be a cause of
action for damages. If there are any repairs that are the obligation
of Lessor, and Lessor exceeds the time period allowed in paragraph A
of this section, then Lessee may, if it chooses, elect to perform the
repair, then xxxx the cost of such repair to Lessor.
C. Lessee's Right to Cure Default. If Lessor fails to
discharge fully any of its obligations imposed by a mortgage that is
superior to this Lease, or Lessor fails to pay any real estate taxes
and assessments affecting the Premises or Lessor fails to make any
repairs that this Lease or any law requires it to make, then Lessee
may, but will not be required to, discharge those obligations, or pay
those taxes and assessments, or make those repairs, as the case may
be. If it does, all amounts expended in doing so and all costs
incurred in doing so along with 12 percent interest per annum from the
date of Lessee's payment shall be payable by Lessor upon demand. If
Lessor fails to make payment, in addition to any other rights Lessee
may have, it will have the right to offset the amount of repayment
against rent and other charges under this Lease.
24. Assignment and Succession. Lessor has approved of the
proposed sublease of a portion of the Premises provided that the use of the
subtenant is acceptable to Lessor. Lessee shall not otherwise assign, let, or
sublet this Lease Agreement or the Premises, or any part of the Premises, or in
any way transfer or hypothecate any of its interest in this Lease Agreement or
the Premises without first obtaining the written consent of Lessor, which will
not be unreasonably withheld, conditioned, or delayed. Lessor's consent shall
be conditioned upon Lessor's approval of the economic viability of the proposed
assignee or sublessee and Lessor's determination that the proposed use of the
Premises by the assignee or sublessee is consistent with the uses in the
Property. Notwithstanding all other provisions of this Lease Agreement, Lessee
may at any time and without Lessor's consent, assign all or part of this Lease,
or sublease all or part of the Premises, upon notification to Lessor, to: any
entity that has the power to direct Lessee's management and operation; or any
entity whose management and operation is controlled by the Lessee; or any
entity a majority of whose voting stock
10
11
is owned by Lessee; or any entity in which or with which Lessee, its successors
or assigns, is merged or consolidated, in accordance with applicable statutory
provisions for merger or consolidation of entities, so long as the liabilities
of the entities participating in such merger or consolidation are assumed by
the entity surviving such merger or created by such consolidation; or any
entity acquiring this Lease and a substantial portion of Lessee's assets; or
any corporate successor to a successor entity becoming such by either of the
methods described above, so long as on the completion of such merger,
consolidation, acquisition, or assumption, the successor has a net worth no
less than Lessee's net worth immediately prior to such merger, consolidation,
acquisition. Information to be provided Lessor hereunder shall not include any
information which is not generally made available to the public or to the
shareholders of Lessee.
A. Lessee's Primary Responsibilities. Subject to the
provisions above, this Lease Agreement shall be binding upon and inure
to the benefit of the parties, their heirs and successors and assigns.
However, Lessee shall remain primarily responsible for any and all
obligations, liabilities and responsibilities of Lessee under this
Lease Agreement after any subletting or hypothecation, or an
assignment unless the same has been consented to or provided for as
set forth above.
B. Payment of Lessor Costs. Lessee agrees to reimburse
Lessor for Lessor's reasonable attorney fees and related costs
incurred in connection with the processing, review, and/or
documentation of any requested transfer, assignment, subletting, or
hypothecation of this Lease Agreement or of Lessee's interest in and
to the demised premises.
25. Estoppel Certificate-Lessor. Within ten (10) days after
request by Lessor, Lessee agrees to deliver, at Lessor's sole expense, in
recordable form, a certificate to any proposed mortgage or purchaser, or to the
Lessor, certifying (if such be the case) that this Lease Agreement is in full
force and effect and that to the knowledge of Lessee, there are no defenses or
offsets thereto, or stating those claimed by Lessee. Any such statement may be
conclusively relied upon by any prospective mortgagee or purchaser of the
property of which the Premises are a part.
26. Estoppel Certificate-Lessee. Within ten (10) days after
request by Lessee, Lessor agrees to deliver, at Lessee's sole expense, in
recordable form, a certificate to any proposed mortgagee, lender or purchaser,
or to the Lessee, certifying (if such be the case) that this Lease Agreement is
in full force and effect and that to the knowledge of Lessor, there are no
defaults or unpaid rents, or stating those claimed by Lessor. Any such
statement may be conclusively relied upon by any prospective mortgagee, lender
or purchaser conducting business with the Lessee.
27. Subordination. This Lease Agreement, at Lessor's option,
shall be subordinate to any mortgage or other hypothecation for security now or
hereafter placed upon the real property of which the Premises are a part, and
to any and all advances made on the security thereof, and to all renewals,
modifications, consolidations, replacements and extensions thereof. In spite
of such subordination, Lessee's right to quiet possession of the Premises shall
not be disturbed if Lessee is not in default and so long as Lessee shall pay
the rent and observe and perform all of the provisions of this Lease Agreement,
unless this Lease Agreement is otherwise terminated pursuant to its terms. If
any holder of such mortgage or other hypothecation for security shall elect to
have this Lease Agreement prior to its lien and shall give written notice to
that effect to Lessee, this Lease Agreement shall be deemed prior to such
mortgage or other hypothecation for security, whether this Lease Agreement is
dated prior or subsequent to such mortgage or other hypothecation for security,
or the date of recording such instrument. Lessor shall be obligated to obtain
a nondisturbance agreement from any present or future mortgagee or purchaser in
favor of Lessee and failure of the Lessor to do so shall be considered a Lessor
default and notwithstanding other provisions, shall allow Lessee to terminate
this Lease.
A. Additional Documents. Lessee also agrees to execute
any documents required to effectuate such subordination or make this
Lease Agreement prior to the lien of any mortgage, or other
hypothecation for security, as the case may be, provided that Lessor
shall bear all costs, legal and otherwise associated with the review
and execution of said documents. Failing to so do within fifteen (15)
days after written demand shall make, constitute and irrevocably
appoint Lessor as Lessee's attorney-in-fact and in Lessee's name,
place and stead to so act.
11
12
B. Foreclosure. Upon a foreclosure of any mortgage or
execution of any deed in lieu of foreclosure, or declaration of
Lessor's default under any hypothecation for security and demand by
Lessor's successor, Lessee shall attorn to and recognize such
successor as Lessor under this Lease Agreement, provided that such
successor shall execute a non-disturbance agreement in favor of
Lessee.
28. No Additional Leases to Financial Institutions. Provided the
Lessee is not in default hereunder, during the lease term, Lessor shall not
allow any other portion of the property of which the Premises are a part to be
used in the business of a bank, savings and loan association, savings bank,
credit union, mortgage bank, or loan agency.
29. Right of First Refusal to Purchase. Should Lessor, during the
lease term, or any extension thereof, elect to sell the property of which the
Premises are a part, Lessee shall have the right of first refusal to meet any
bona fide offer of sale on the same terms and conditions of such offer. Upon
Lessor's failure to meet such bona fide offer within fifteen (15) days after
notice thereof from Lessor, Lessor shall be free to sell the property in
accordance with the terms and conditions of the then current offer. In the
event such sale does not close within one hundred twenty (120) days of the date
of such notice to Lessee, the right of first refusal shall be reinstated and an
additional notice to Lessee shall be required before Lessor shall be allowed to
complete the sale on the same terms and conditions.
30. Notices. All notices under this Lease Agreement shall be in
writing and shall be effective two (2) days after mailing by certified mail,
return receipt requested, or when delivered personally to Lessor or Lessee at
their addresses set forth below, or to such other addresses as may be
designated by notice.
31. Entire Agreement. This Lease Agreement shall constitute the
entire agreement between the parties. Any prior understanding or
representation or any kind preceding the date of this Lease Agreement shall not
be binding upon either party except to the extent incorporated in this Lease
Agreement.
32. Modification of Agreement. Any modification of this Lease
Agreement or additional obligation assumed by either party in connection with
this Agreement shall be binding only if evidenced in a writing signed by each
party or an authorized representative of each party.
33. Attorney Fees. In the event that any action is filed in
relation to this Lease Agreement, the unsuccessful party in the action shall
pay to the successful party, in addition to all sums that either party may be
called on to pay, a reasonable sum for the successful party's attorney fees.
34. Hold-Over Tenancy. If (without execution of a new Lease
Agreement or written extension) Lessee shall hold over after the expiration of
the term of this Lease Agreement, Lessee shall be deemed to be occupying the
Premises as a tenant from month-to-month, which tenancy may be terminated as
provided by law. During such tenancy, Lessee agrees to be bound by all of the
terms, covenants and conditions specified in this Lease Agreement, insofar as
applicable.
35. Rules and Regulations. Lessee shall faithfully observe and
comply with the "Rules and Regulations" that apply to all Property tenants and
all reasonable and nondiscriminatory modifications to such rules and
regulations from time to time put into effect by Lessor. These rules and
regulations are imposed for the cleanliness, good appearance, proper
maintenance and good order and reasonable use of the Premises and the Building
in which the Premises are located by all tenants and their clients, customers,
patients, employees and business invitees. Lessor shall not be responsible or
liable to Lessee for violation or nonperformance of any of the rules and
regulations by any other tenant or occupant of the Building in which the
Premises are located.
36. Governing Law. It is agreed that this Lease Agreement shall
be governed by, construed and enforced in accordance with the laws of the State
of Wisconsin.
37. Paragraph Headings. The titles to the paragraphs of this
Lease Agreement are solely for the convenience of the parties and shall not be
used to explain, modify, simplify, or aid in the interpretation of the
provisions of this Lease Agreement.
12
13
38. Time of the Essence. It is specifically declared and agreed
that time is of the essence of this Lease Agreement.
39. Effect of Partial Invalidity. The invalidity of any part of
this Agreement will not and shall not be deemed to affect the validity of any
other part. In the event that any provision of this Agreement is held to be
invalid, the parties agree that the remaining provisions shall be deemed to be
in full force and effect as if they had been executed by both parties
subsequent to the expungement of the invalid provision.
40. Lessor Waivers. Lessor agrees to execute within ten (10)
working days of Lessee's request a "Landlord's Waiver", relating to personal
property and removable trade fixtures, as prepared by the Lessee's bank.
41. Recording. Neither Lessor nor Lessee shall record this Lease
Agreement without the written consent of the other, which consent shall not be
unreasonably withheld, conditioned, or delayed. Either party may record a
short form memorandum or abridgement of the Lease Agreement and shall furnish
the other party with a copy of such recorded instrument.
42. Redelivery. Upon termination, Lessee shall surrender the
Premises in good order and condition excepting normal wear and tear. Lessee
shall remove from Premises any and all equipment, furniture and other personal
property. Lessee may, at its option, remove at the termination of this Lease
or any extension thereof, any trade fixtures used by it in the business of
Lessee on the Premises; provided that in the case of such removal, Lessee shall
cause the Premises to be restored to the condition in which they were prior to
such installation by Lessee. Lessee shall not remove any alterations,
additions, or leasehold improvements, or any building equipment installed by
Lessor or necessary to the operation of the building.
43. Riders. Site plans, exhibits and riders, if any, signed by
Lessor Lessee, and affixed to this instrument, are a part of this Lease
Agreement.
44. Corporate Authority. Each of the persons executing this Lease
Agreement on behalf of Lessee covenants and warrants that Lessee is a duly
authorized and existing corporation, Lessee has and is or will be prior to
commencement, qualified to do business in the state of Wisconsin; the
corporation has full right and authority to enter into this Lease Agreement;
and each person signing on behalf of the corporation was authorized to do so.
45. Parties Bound. Each and every provision of this Lease
Agreement shall bind and inure to the benefit of the parties hereto and their
legal representatives. The term "legal representatives" is used in this Lease
Agreement in its broadcast possible meaning and includes in addition to
executors and administrators, every person, partnership, corporation, or
association succeeding to the interest or to any part of the interest in or to
this Lease Agreement or in or to the Premises, of either Lessor or Lessee,
whether the succession results from the act of a party in interest, occurs by
operation of the law, or is the effect of the operation of law together with
the act of such party. Each and every agreement and condition of this Lease by
Lessee to be performed shall be binding on all assignees, subtenants,
concessionaires, or licensees of Lessee.
46. Counterparts. This Lease Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original, but
all of which together shall constitute but one and the same instrument.
13
14
IN WITNESS WHEREOF, each party to the Lease Agreement has caused it to
be executed by one duly authorized to be effective on the date last signed by a
party hereto.
LESSOR:
XXXXXXX INVESTMENTS, LLP
Dated: 12-16-96 By: /s/ Xxxxx X. Xxxxxxx, Xx.
------------------- -------------------------------
By: /s/ Xxxxxx Xxxxxxx
-------------------------------
Address:
0000 X. Xxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
LESSEE:
STATE FINANCIAL BANK-WATERFORD
Dated: 12-16-96 By: /s/ Xxxxx X. Xxxxxxx
------------------- -------------------------------
Title: President and CEO
----------------------------
Attest: /s/ Xxxxxxx X. Xxxxxxxx
---------------------------
Title: Cashier
---------------------------
Address:
000 X. Xxxxxxxxx Xxxxxx
---------------------------
Xxxxxxxxx, XX 00000
---------------------------
14
15
EXHIBIT A TO LEASE AGREEMENT
MADE BY AND BETWEEN XXXXXXX INVESTMENTS, LLP ("Lessor") and
STATE FINANCIAL BANK - WATERFORD ("Lessee")
Part of the Northwest 1/4 of Xxxxxxx 00, Xxxxxxxx 0 Xxxxx, Xxxxx 00 Xxxx, Xxxx
of Burlington, Racine County, Wisconsin and more particularly described as
follows: Commence at the West 1/4 corner of Section 28, run thence North 89
degrees 45' 22" East 45.27 feet to the Easterly right-of-way line of State Trunk
Highway 38 and 83; thence North 38 degrees 16' 43" East along said right-of-way
line 217.00 feet to the point of beginning of the following described parcel;
thence continue North 38 degrees 16' 43" East along said right-of-way line
309.00 feet; thence South 51 degrees 43' 17" East 250.00 feet; thence South 38
degrees 16' 43" West 309.00 feet; thence North 51 degrees 43' 17" West 250.00
feet to the point of beginning.
15
16
EXHIBIT B TO LEASE AGREEMENT
MADE BY AND BETWEEN XXXXXXX INVESTMENTS, LLP ("Lessor") and
STATE FINANCIAL BANK - WATERFORD ("Lessee")
Building layout of property located at 0000 Xxxxx Xxxxxxxxx Xxxxxx,
Xxxxxxxxxx, Xxxxxxxxx prepared by Xxxxxxxx & Associates Architects, Ltd. 000
Xxxx Xxxxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxxx 00000, telephone (000) 000-0000.
16
17
EXHIBIT C TO LEASE AGREEMENT
MADE BY AND BETWEEN XXXXXXX INVESTMENTS, LLP ("Lessor") and
STATE FINANCIAL BANK - WATERFORD ("Lessee")
Graphic drawing of proposed drive-up facility for State Financial Bank
- Waterford to be located 0000 Xxxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxxx.
17
18
EXHIBIT D TO LEASE AGREEMENT
MADE BY AND BETWEEN XXXXXXX INVESTMENTS, LLP ("Lessor") and
STATE FINANCIAL BANK - WATERFORD ("Lessee")
The Premises shall be provided by Lessor to Lessee in "as is"
condition except for the work provided herein which shall be Lessor's work and
shall be provided at not cost to Lessee, except as provided herein.
Notwithstanding any provision hereof to the contrary, all costs and expenses of
construction of the drive-in banking facility and property improvements made as
a result of the location of such drive-in banking facility to be incorporated
into the building on the property shall be paid by Lessee. Lessor's work shall
include the following:
1. Roof. All materials related to the roof except cutting and
patching as required for Lessee's additional mechanical equipment or
improvements shall be the responsibility of Lessor. Any such cutting and
patching shall be done by Lessor's contractor for quality control, but paid for
by Lessee.
2. Exterior Building Facade. All exterior building walls and the
exterior facade of the building, including exterior windows and doors, shall be
constructed and installed by Lessor. Lessor shall cause to be installed an
exterior window in the area formerly occupied by a doorway to the "bakery" area
and proposed as a rental unit to be sublet by Lessee.
3. Vestibule Construction. Lessor shall be responsible for
construction of the vestibule serving the Premises on the south side of the
Property, including the exterior and interior entrance doors. Lessor shall
have no responsibility for construction of the vestibule serving the Premises
on the east side of the Building except for the installation of the exterior
doors. All other costs of construction of such vestibule, including entrance
doors and windows from the vestibule to the Premises shall be paid by Lessee.
4. Sidewalks. Lessor shall provide sidewalks adjacent to the
building on the property as shown on the plot plan.
5. Walls. Lessor shall remove the interior partition wall in the
area formerly used for a "bakery" in the area to be sublet by Lessee to a
sublessee. Lessor shall finish all exterior building walls with metal studs,
insulation, vapor barrier and drywall. Lessor shall also install the partition
wall for the east side of the Premises and shall install such partition walls
as are necessary to construct a uni-sex bathroom for the Premises. Such
partition walls shall be drywalled and ready for paint.
6. Floor. Lessor shall provide concrete floors ready for floor
covering.
7. Ceiling. Lessor shall provide ceiling open to interior beams
and roof with Lessee to pay all costs of installation of insulation and a drop
ceiling.
8. Plumbing. Lessor shall provide rough-in plumbing for two
unisex bathrooms (one for premises to be occupied by Lessee and one for
premises to be occupied by sublessee of Lessee); provided that Lessee shall
reimburse Lessor for One Thousand Two Hundred Fifty Dollars ($1,250.00), being
the cost of rough-in plumbing of bathroom in area to be sublet.
9. Electrical. Lessor shall furnish and provide 200-amp service
to Premises, with all costs of electrical distribution and outlets to be paid
by Lessee. Lessor shall install an extra electrical service for the benefit of
the area to be sublet by Lessee and Lessee shall reimburse Lessor for the
actual cost of installation of such second service.
10. Heating, Ventilating and Air Conditioning. Lessor shall
furnish two roof-top HVAC units with working controls. Tenant shall pay all
costs of all duct work, grills and other distribution costs from the installed
units.
11. Parking Lot Improvements. Lessor shall complete all parking
lot improvements; provided that Lessee shall contribute to Lessor an amount to
offset the costs of special curbing and other parking lot improvements required
for Lessee's drive-in bank facility and other special bank use.
18
19
12. Other. Lessor shall have no other obligation to improve and
fixture the Premises for Lessee's use.
19
