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EXHIBIT 10.8
OFFICE LEASE
THIS LEASE, made as of this 5TH day of SEPTEMBER, 1995, between DUKE
PARTNERS (hereafter known as "Landlord"), and SUCCESS NATIONAL BANK (hereafter
known as "Tenant");
THAT Landlord hereby leases to Tenant, and Tenant accepts the demised
premises (hereinafter known as "demised premises" or "Premises"), being office
#155 in the building (hereinafter known as "Building"), known as DEERFIELD
EXECUTIVE CENTER, for the term of 3 YEARS, unless sooner terminated as provided
herein, commencing OCTOBER 1, 1995, and ending SEPTEMBER 30, 1998, to be
occupied and used by the Tenant for general offices and no other purpose,
subject to the agreements herein contained.
IN CONSIDERATION THEREOF, THE PARTIES COVENANT AND AGREE:
Tenant shall pay to DUKE PARTNERS (Landlord), in coin or currency, which, at
the time or times of payment, is legal tender for public and private debts in
the United States of America, at 0000 Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx,
or as directed from time to time by the Landlord's notice, the sum ("Base
Rent") of:
YEAR 1 10/1/95 TO 9/30/96 $60,000.00 **SEE ATTACHED ADDENDUM**
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YEAR 2 10/1/96 TO 9/30/97 $60,000.00
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YEAR 3 10/1/97 TO 9/30/98 $61,200.00
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In installments as follows:
Total monthly rent for the period OCTOBER 1, 1995 to SEPTEMBER 30, 1996 is
$5,000.00, each installment being payable in advance promptly on the first day
of every calendar month of the term and at the then current rate for fractions
of a month if the term shall begin or be terminated on any day other than the
last day of any month.
Unpaid rent (or so much as may remain unpaid from time to time) shall incur a
penalty of 5% of the monthly rental rate if not paid by the 5th day of the
month. An additional 2% penalty may be charged to the Tenant, by the Landlord,
if said rent is not paid by the 15th day of the month. An additional penalty
of 3% of the monthly rental rate may be charged if the rent remains unpaid 30
days from the initial due date. Landlord's right to receive such penalty
charges shall not, in any way, limit any of Landlord's other remedies under
this lease or at law or equity.
RENT THE BASE RENT shall be adjusted (Rent Adjustment) in accordance
with the provisions of this section. Tenant agrees to pay as
ADJUSTMENT additional rent hereunder in each calendar year, based on the
previous calendar year's "Total Operating Expense", its
proportionate share of any increase in "Total Operating Expenses"
in excess of $4.50 per square foot. For calendar year 1995, the
parties agree and stipulate that the "Total Operating Expenses"
are $6.50 per squre foot.
(1) "Rentable Area of the Premises", as used herein shall be
defined to mean 4,087 square feet.
(2) "Rental Area of the Building" as used herein shall be
defined to mean 55,806 square feet. Accordingly, the
Tenant's proportionate share for all purposes of this lease
shall be 7.32 per cent.
(3) "Total Operating Expenses" are Taxes and Operating Expenses
(defined later in this section).
(4) "TAXES" shall mean:
(a) The term "Taxes" shall mean real estate taxes,
assessments, sewer tests, rate and charges, transit
taxes, taxes based upon the receipt of rent and any
other federal, state or local governmental charge,
general, special, ordinary or extraordinary (but not
including income or franchise taxes or any other taxes
imposed in lieu of real estate taxes and other ad
valorem taxes), which may now or hereafter be levied or
assessed against the land upon which the Building
stands and upon the Building, hereinafter collectively
known as "Real Property", in case of special Taxes or
assessments which may be payable in installments, only
the amount of each installment paid during a calendar
year shall be included in Taxes for that year. Taxes
shall also include any personal property taxes
(attributable to the year in which paid) imposed upon
the furniture, fixtures, machinery, equipment,
apparatus, systems and appurtenances, used in
connection with said Real Property for the operation
thereof.
(b) If the tax year for real estate taxes shall be
changed by the applicable governmental authority
resulting in the payment by the Landlord in one
calendar year of taxes which relate to more than one
calendar year, then notwithstanding anything to the
contrary contained in this Lease, for purposes of
determining the current year taxes for such calendar
year, such amount of taxes paid shall be adjusted to an
amount which is equivalent to a one-year payment of
taxes.
"RENT ADJUSTMENT CLAUSE DOES NOT APPLY TO THE PERIOD
FROM OCTOBER 1995 THROUGH SEPTEMBER 1996, OR ANY LEASE
EXTENSION THROUGH THE YEAR 2008."
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(5) The term "Operating Expenses" as used herein shall mean:
(a) all direct costs of operation, maintenance and
management of the building and parking area as
determined by standard accounting principles
consistently applied, and shall include the following
by way of illustration and not limitation: heat, water,
electricity and other utility charges, insurance
premiums, licenses, permit and inspection fees,
personal property taxes and the cost of all labor,
contracted or otherwise, materials and other services
paid or incurred by Landlord in the operation and
maintenance of the building during the lease term all
as determined by the certified public accountant
employed by the Landlord for the applicable calendar
year and,
(b) the cost as reasonably amortized by Landlord of
any capital improvement made to the building after the
year 1989.
Operating Expenses shall not include (a) any interest expense
on any loans secured by mortgages placed upon the building and
underlying land, (b) franchise or income taxes imposed upon
Landlord, or (c) the cost of any work or service performed in any
instance for any Tenant (including Tenant) at the cost of such
Tenant.
Under this Rent Adjustment clause, Tenant shall pay an
additional $2.00 per square foot, which amounts to -0- per month,
for the year N/A. All succeeding Rent Adjustments, regardless of
lease date, shall be implemented on February 1 of each calendar
year beginning with the year 1996. Landlord will provide written
notice to Tenant of any increases under this clause. Tenant
shall have the right to review income and expense statements of
Landlord upon request.
SECURITY Tenant agrees to deposit with Landlord, upon the execution of
this Lease, the sum of $ -0- as security for the full and
faithful performance by Tenant of each and every term, provision,
covenant and condition of this Lease. If Tenant defaults in
respect to any of the terms, provisions, covenants and conditions
of this Lease including but not limited to payment of the Base
Rent and Rent Adjustments, Landlord may use, apply or retain the
whole or any part of the security so deposited for the payment of
any such rent in default, or for any other sum in which the
Landlord may expend or be required to expend by reason of
Tenant's default including, without limitation, any damages or
deficiency in the reletting of the demised premises, whether such
damages or deficiency shall have accrued before or after any
re-entry by Landlord. If any of the security shall be so used,
applied or retained by Landlord at any time or from time to time,
Tenant shall promptly, in each such instance, on written demand
therefore by Landlord, pay to Landlord such additional sum as may
be necessary to restore the security to the original amount set
forth in the first sentence of this paragraph. If Tenant shall
fully and faithfully comply with all the terms, provisions,
covenants, and conditions of this Lease, the security, or any
balance thereof, shall be returned to Tenant after the following:
(a) the time fixed as the expiration of the term of this
lease;
(b) the removal of Tenant from the demised premises;
(c) the surrender of the demised premises by Tenant to
Landlord in accordance with this Lease; and
(d) the time required for the escalation charges due
pursuant to the Lease to have been computed by Landlord
and paid by Tenant.
Except as otherwise required by law, Tenant shall not be
entitled to any interest on the aforesaid security. In the
absence of evidence satisfactory to Landlord of an assignment of
the right to receive the security or the remaining balance
thereof, Landlord may return the security to the original Tenant,
regardless of one or more assignments of this Lease.
HEAT & AIR Landlord shall provide heat and air conditioning (HVAC) from
CONDITIONING 8:00 a.m. to 6:00 p.m. weekdays, and from 8:00 a.m. to 1:00 p.m.
Saturdays as part of the base rent. At other times, Landlord
shall provide air conditioning or heat (HVAC) at Tenant's request
based on the following schedule:
First request in any month is free; Each request thereafter for
Air Conditioning -$25 fee plus $10 per hour for each hour after
initial four hours;
Heat - $15 fee plus $10 per hour for each hour after initial
four hours. Any HVAC charges will be payable with the next
month's rent. If Tenant requires supplementary air conditioning
service or units due to the presence of heat generating machinery
or equipment, Tenant shall pay the installation and operating
costs of said service.
UTILITIES Tenant shall pay directly to Commonwealth Edison charges for
"lights and outlet use" utilized in its own office space. All
other utility charges are paid by Landlord and are included in
the calculation of Total Operating Expenses.
COMMON AREAS Landlord will cause the halls, corridors, restrooms and other
parts of the Building to be lighted, cleaned and generally cared
for, accidents and unavoidable delays excepted.
RULES AND The rules and regulations at the end of this Lease constitute a
REGULATIONS part of this Lease. Tenant shall observe and comply with them,
and also with such further reasonable rules and regulations as
may be later required by Landlord, as would be customary for a
Professional Office Building.
ASSIGNMENT, Tenant shall neither sublet the Premises or any part thereof
SUBLETTING nor assign this Lease nor permit by any act or default any
transfer of Tenant's interest by operation of law, nor offer the
Premises or any part thereof for lease or sublease, nor permit
the use thereof for any purpose other than as above mentioned,
without in each case the written consent of Landlord.
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SURRENDER Tenant shall quit and surrender the Premises at the end of the
OF PREMISES term in as good condition as the reasonable use thereof will
permit, with all keys thereto, and shall not make any alterations
in the Premises without the written consent of Landlord; and all
alterations which may be made by either party hereto upon the
Premises, except movable furniture and fixtures put in at the
expense of Tenant, shall be the property of the Landlord, and
shall remain upon and be surrendered with the Premises as a part
thereof at the termination of this Lease.
NO MISUSE Tenant shall return the Premises to Landlord with glass, doors
and fixtures as originally leased, entire and unbroken, as is now
therein. Tenant will pay Landlord for any damage caused by
misuse of the Premises.
TERMINATION, At the termination of this lease, by lapse of time or
ABANDONMENT, otherwise, Tenant agrees to yield up immediate and peaceable
RE-ENTRY, possession to Landlord, and falling so to do, to pay as
RELETTING liquidated damages, for the whole time such possession is
withheld, the sum of $200.00 Dollars per day, and it shall be
lawful for the Landlord or his legal representative at any time
thereafter, without notice, to re-enter the Premises or any part
thereof, either with or (to the extent permitted by law) without
process of law, and to expel, remove and put out the tenant or
any person or persons occupying the same, using such force as may
be necessary to do so, and to repossess and enjoy the Premises
again as before this lease, without prejudice to any remedies
which might otherwise be used for arrears of rent or preceding
breach of covenants; or in case the Premises shall be abandoned,
deserted, or vacated and remain unoccupied five days
consecutively, the Tenant hereby authorizes and requests the
Landlord as Tenant's agent to re-enter the Premises and remove
all articles found therein, place them in some regular warehouse
or other suitable storage place, at the cost and expense of the
Tenant, and proceed to re-rent the Premises at Landlord's option
and discretion and apply all money so received after paying the
expenses of such removal toward the rent accruing under this
lease. This request shall not in any way be construed as
requiring any compliance therewith on the part of the Landlord,
except as required by Illinois statute. If the Tenant shall fail
to pay the rent at the times, place, and in the manner above
provided, and the same shall remain unpaid five days after the
day whereon the same should be paid, the Landlord by reason
thereof shall be authorized to declare the term ended, and the
Tenant hereby expressly waives all right or rights to any notice
or demand under any statute of the state relative to forcible
entry or detainer or Landlord and Tenant, and agrees that the
Landlord, his agents or assigns may begin suit for possession or
rent without notice or demand.
REMOVED In the event of re-entry and removal of articles found on the
PROPERTY Premises as hereinbefore provided, the Tenant hereby authorizes
and requests the Landlord to sell the same at public or private
sale with or without notice, and the proceeds thereof, after
paying the expenses of removal, storage and sale to apply towards
the rent reserved herein, rendering the overplus, if any to
Tenent upon demand.
LANDLORD Except as provided by Illinois statute, the Landlord shall not
NOT be liable for any loss of property or defects in the Building or
LIABLE in the Premises, or any accidental damages to the person or
property of the Tenant in or about the Building or the Premises,
from water, rain or snow which may leak into, issue or flow from
any part of the Building or the Premises or from the pipes or
plumbing works of the same. The tenant hereby covenants and
agrees to make no claim for any such loss or damage at any time.
The Landlord shall not be liable for any loss or damage of or to
any property placed in any storeroom or storage place in the
Building, such storeroom or storage place being furnished
gratuitously, and no part of the obligations of this Lease.
PLURALS; The words "Landlord" and "Tenant" wherever used in this Lease
SUCCESSORS shall be construed to mean Landlords or Tenants in all cases
where there is more than one Landlord or Tenant, and to apply to
individuals, male or female, or to firms or to corporations, as
the same may be described as Landlord or Tenant herein, and the
necessary grammatical changes shall be assumed in each case as
though fully expressed. All covenants, premises, representations
and agreements herein contained shall be binding upon, apply and
inure to the benefit of Landlord and Tenant and their respective
heirs, legal representatives, successors and assigns.
WITNESS the hands and seals of the parties hereto as of the
Date of the Lease stated above.
(SEAL) /s/ ? (SEAL)
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WITNESS AGENT FOR DUKE PARTNERS
(SEAL) /s/ ? (SEAL)
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WITNESS SUCCESS NATIONAL BANK
Tax I.D. # _____________________
This Office Lease is contingent upon the Lessee obtaining by October 15, 1995,
the necessary authority to operate at the subject premises from the Office of
the Comptroller of Currency. In the event that the Lessee does not obtain said
authority, then, and in that event, Lessee may terminate this Office Lease by
written notice to the Landlord.
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RULES AND REGULATIONS
1. The Deerfield Executive Center is a NON-SMOKING facility. There is NO
SMOKING ALLOWED in the building. Thank you in advance for cooperating with
this policy.
2. All tenants are required to use chair mats at the desk area in order to
protect the carpet from abuse. If any portion of the carpet is damaged or
destroyed from not using a chair mat, the security deposit will be
immediately forfeited.
3. No sign, advertisement or notice shall be inscribed, painted or affixed
on any part of the outside or inside of Building, except on the glass of
the doors and windows of the room leased and on the directory board, and
then only of such color, size, style and material as shall be first
specified by the Landlord in writing, endorsed on this lease. No showcase
shall be placed in front of Building by Tenant, without the written consent
of Landlord endorsed on this lease. The Landlord reserves the right to
remove all other signs and showcases without notice to the Tenant, at the
expense of the Tenant. At the expiration of the term Tenant is to remove
all his signs from such windows, doors and directory board.
4. Tenant shall not put up or operate any steam engine, boiler, machinery
or stove upon the Premises, or carry on any mechanical business on
Premises, or use or store inflammable fluids in the Premises without the
written consent of the Landord first had and endorsed on this lease, and
all stoves which may be allowed in the Premises shall be placed and set up
according to the city ordinance.
5. No additional locks shall be placed upon any doors of said room without
the written consent of the Landlord first had and endorsed upon this lease;
and the Tenant will not permit any duplicate keys to be made (all necessary
keys to be furnished by the Landlord) and upon the termination of this
Lease, Tenant will surrender all keys of Premises and Building.
6. All safes shall be carried up or into Premises at such times and in
such a manner as shall be specified by the Landlord; the Landlord shall in
all cases retain the power to prescribe the proper position of such safes,
and any damage done to the Building by taking in or putting out a safe, or
from overloading the floor with any safe, shall be paid by the Tenant.
Furniture boxes or other bulky articles belonging to Tenant shall be
carried up in the freight compartment of the elevators of the Building;
packages which can be carried by one person and not exceeding fifty pounds
in weight, may however, be carried down by the passenger elevator, at such
times as may be allowed by the management.
7. The Premises leased shall not be used for the purpose of lodging or
sleeping rooms or any immoral and illegal purpose.
8. The rent of an office will include occupancy of office, water to
Landlord's standard fixtures, heat, and elevator service during reasonable
working hours; but Landlord shall not be liable for any damages from the
stoppage of water, heat or elevator service.
9. If Tenant desires Venetian or other awnings or shades over and outside
of the windows, to be erected at Tenant's expense, they must be of such
shape, color, material and make as may be prescribed by the Landlord in
writing on this lease.
10. The light through the transoms opening into the hall shall not be
obstructed by the Tenant. Birds, dogs or other animals shall not be
allowed in the Buildings. All tenants and occupants must observe strict
care not to leave their windows open when it rains or snows, and for any
default or carelessness in these respects, or any of them, shall make good
all injuries sustained by other tenants, and also all damage to the
Building resulting from such default or carelessness.
11. No packages, merchandise or other effects shall be allowed to remain in
the halls at any time.
12. The Landlord reserves the right to make such other and further reasonable
rules and regulations as in his judgement may from time to time be needful
for the safety, care and cleanliness of the Premises and for the
preservation of good order therein.
13. It is understood and agreed between the Tenant and the Landlord that no
assent or consent to change in or waiver of any part of this lease has been
or can be made unless done in writing and endorsed hereon by the Landlord;
and in such case it shall operate only for the time and purpose in such
lease expressly stated.
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D U K E
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P A R T N E R S
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LEASE ADDENDUM
1) Tenant shall have the option to renew this lease for two (2) additional
(5) year periods. Tenant shall notify Landlord 30 days prior to the
expiration of the lease to exercise these options to renew. The rent for
each one of the option years is specified below:
Option Year(s) 1: $5,450 per month
2: $5,625 per month
3: $5,825 per month
4: $6,025 per month
5: $6,250 per month
6: $6,450 per month
7: $6,675 per month
8: $6,925 per month
9: $7,150 per month
10: $7,400 per month
2) (a) The space will be delivered to the Bank in its current condition
"As is". Any alterations or new construction will be paid for by Tenant
(Bank).
(b) Any alterations or new construction must be approved by the Lake
County Building Department and Landlord. Any plans for construction must
be submitted to Landlord 15 days prior to the expected start date of work
so Landlord's architect can review the scope of work and make any
necessary modifications to comply with the Lake County Building Codes
and/or Building standards.
Before the start of any work on Bank premises, a special inspection
must be scheduled through the Lake County Building Department as part of
the building permit process.
3) (a) All existing equipment is owned by Duke Partners, and will be made
available to the Bank as part of the lease agreement. This includes
exterior signage, the drive through facility, and any equipment currently
on the premises.
(b) Structural repairs to the exterior signage and drive through
facility will be paid for by Landlord. The Bank will be responsible for
normal maintenance (lighting, etc.) of the signs and drive through
facility.
4) Landlord will provide six (6) Reserved parking Spaces designated as
visitor parking for Bank Customers.
DEERFIELD EXECUTIVE CENTER - 0000 Xxxxxxxxx Xxxxxx - Xxxxx 000
Xxxxxxxxx, Xxxxxxxx 00000 - (000) 000-0000 - Fax (000) 000-0000
(000) 000-0000
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D U K E
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P A R T N E R S
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ADDENDUM TO LEASE AGREEMENT
BETWEEN
DUKE PARTNERS
AND
TENANT: Success National Bank
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TENANT HEREBY AGREES TO AN EXTENSION OF THE LEASE ON:
SUITE: 140 and 145 (3,385 rentable square feet combined)
AT THE
DEERFIELD EXECUTIVE CENTER
0000 XXXXXXXXX XXXXXX
XXXXXXXXX, XXXXXXXX 00000
FOR A PERIOD OF: Nineteen Months
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COMMENCING: March 1, 1997*
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ENDING: September 30, 1998
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RENT FOR THE PERIOD SHALL BE $4,480 PER MONTH.
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TENANT'S PROPORTIONATE SHARE OF THE COMMON AREAS SHALL BE 0%
-
ALL TERMS AND CONDITIONS OF THE ORIGINAL LEASE DATED ON Sept. 5, 1995 for Suite
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155 SHALL APPLY TO THIS EXTENSION.
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/s/ ?
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As Agent for Duke Partners Tenant
1/15/97
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Date
*Rent to be pro rated if occupancy date is before or after March 1 at
approximately $149 per day.
DEERFIELD EXECUTIVE CENTER - 0000 Xxxxxxxxx Xxxxxx - Xxxxx 000
Xxxxxxxxx, Xxxxxxxx 00000 - (000) 000-0000 - Fax (000) 000-0000
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LEASE ADDENDUM
1) Tenant shall have the option to renew this lease for two (2) additional
(5) year periods. Tenant shall provide written notice at least thirty
(30) days prior to the expiration of any lease term to exercise the option
to renew the lease.
Option Year(s) 1: $4625 per month
2: $4765 per month
3: $4905 per month
4: $5070 per month
5: $5230 per month
6: $5415 per month
7: $5575 per month
8: $5775 per month
9: $5945 per month
10: $6150 per month
2) The space will be delivered to the Bank in its current condition "As
is." Any alterations or new construction will be paid for by Tenant
(Bank). Landlord (at its expense) will remove certain interior walls if
directed by Tenant. Tenant will reimburse Landlord for any reasonable
repairs (trim, wallpaper, etc.) made after the removal of walls (requested
by tenant).
/s/ ? 1/15/97
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Tenant Date
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Landlord Date
