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10(m) Lease Agreement, dated November 1999, between the Company and
Xxx Xxxxxxxx and Xxx Xxxxxxxx.
BUSINESS LEASE
The Landlord and the Tenant agree to lease the Rental Space for the
Term and at the Rent stated, as follows: (The words Landlord and
Tenant include all landlords and all tenants under this Lease.)
Landlord Xxx Xxxxxxxx and Van Paftinos Tenant Skylands Community Bank
000 Xxxx Xxxxxx 00-00 Xxxxxxxxxx Xxxxxx,
XX Xxx 000
Xxxxxxxxxxxx, XX 00000
Xxxxxxxxxxxx, XX00000
Rental Space 10,000 (ten thousand) square feet (including first and second
floor) as shown on Schedule"A" attached) together with the basement space as set
forth in Paragraph 4 of the Addendum.
in the Building at Xxxxxxxx Xxxxx, Xxxxxxxx Xxxxxx, Xxxxx 000, Lots 9, 10, 11
12.
Xxxxxx County, Hackettstown, New Jersey
............................................................................
Rent for the Term is $ 750,000
Date of Lease November 1999
Term Five years (5 years) The Rent is payable in advance
the first day of each month,
as follows:
$12,500 (twelve thousand five
hundred dollars per month)
Beginning March 1, 2000
Ending November 30, 2004
Security N/A
Broker. N/A
as the Broker who brought about this Lease. The
shall pay the Broker's commission.
LIABILITY INSURANCE. Minimum amounts: for each person
injured $1,000,000.00, for any one accident
$3,000,000, for property damage $50,000
.
Municipal Real Estate Taxes $ *
*See paragraph 5 of Addendum
Base Year 19 .......Percent of Increase. 28%
Use of Rental Space: Bank and bank offices, similar uses and uses permitted
by law.
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Additional agreements: See Addendum attached hereto
1. POSSESSION AND USE
The Landlord shall give possession of the Rental Space to the Tenant for
the Term. The Tenant shall take possession of and use the Rental Space for the
purpose stated above. The Tenant may not use the Rental Space for any other
purpose without the written consent of the Landlord.
The Tenant shall not allow the Rental Space to be used for any unlawful or
hazardous purpose. The Tenant is satisfied that the Rental Space is zoned for
the Use stated. The Tenant shall obtain any necessary certificate of occupancy
or other certificate permitting the Tenant to use the Rental Space for that Use.
The Tenant shall not use the Rental Space in any manner that results in (1)
an increase in the rate of fire or liability insurance or (2) cancellation of
any fire or liability insurance policy on the Rental Space. The Tenant shall
comply with all requirements of the insurance companies insuring the Rental
Space. The Tenant shall not abandon the Rental Space during the Term of this
Lease or permit it to become vacant for extended periods.
2. DELAY IN GIVING OF POSSESSION
This paragraph applies if (a) the Landlord cannot give pay possession of
the Rental Space to the Tenant on the beginning date and (b) the reason for the
delay is not the Landlord's fault. The Landlord shall not be held liable for the
delay. The Landlord shall then have 30 days in which to give possession. If
possession is given within that time, the Tenant shall accept possession and pay
the Rent from that date. The ending date of the Term shall not change. If
possession is not given within that time this Lease may be cancelled by either
party on notice to the other.
3. NO ASSIGNMENT OR SUBLETTING
This clause void.
4. RENT AND ADDITIONAL RENT
Tenant shall pay the Rent to the Landlord at the Landlord's
address.
. If the Tenant fails to comply with any agreement in this Lease, the Landlord
may do so on behalf of the Tenant. The Landlord may charge the cost to comply,
including reasonable attorney's fees, to the Tenant as "additional rent" ' The
additional rent shall be due and payable as Rent with the next monthly Rent
payment. Non-payment of additional rent shall give the Landlord the same rights
against the one Tenant as if the Tenant failed to pay the Rent.
5. SECURITY
This clause void
6. LIABILITY INSURANCE
The Tenant shall obtain, pay for, and keep in effect for the benefit of the
Landlord and the Tenant public liability insurance on the Rental Space. The
insurance company and the broker must be acceptable to the Landlord. This
coverage must be in at least the minimum amounts stated above.
All policies shall state that the insurance company can not cancel or
refuse to renew without at least 10 days written notice to the Landlord.
The Tenant shall deliver the original policy to the Land lord with proof of
payment of the first year's premiums. This shall be done not less than 15 days
before the Beginning of the Term. The Tenant shall deliver a renewal policy to
the Land lord with proof of payment not less than 15 days before the expiration
date of each policy.
7. UNAVAILABILITY IF FIRE INSURANCE, RATE INCREASES
If due to the Tenant's use of the Rental Space the Landlord cannot obtain
and maintain fire insurance on the Building in an amount and form reasonably
acceptable to the Landlord, the Landlord may cancel this Lease on 30 days notice
to the Tenant. If due to the Tenant's use of the Rental Space the fire insurance
rate is increased, the Tenant shall pay the increase in the premium to the
Landlord on demand.
8. WATER DAMAGE
The Landlord shall not be liable for any damage or injury to any persons or
property caused by the leak or flow of water from or into any part of the
Building.
9. LIABILITY OF LANDLORD AND TENANT
The Landlord shall not be liable for injury or damage to any person or
property unless it is due to the Landlord's
act or neglect. The Tenant is liable for any loss, injury or damage to any
person or property caused by the act or neglect of the and costs resulting from
any injury or damage due to the act Tenant or the Tenant's employees. The
Tenant shall defend the Landlord from and reimburse the Landlord for all
liability or neglect of the Tenant or the Tenant's employees.
10. REAL ESTATE TAXES
The Landlord shall pay the yearly Municipal Real Estate Taxes on the Building
in the amount stated above. This is the tax assessed for the Base Year stated
above. The Tenant shall pay the Percent of Increase stated above of each yearly
increase in the Municipal Real Estate Taxes over the tax for the Base Year. The
Tenant shall pay this amount yearly in sum within 30 days of the Landlord's
written request accom- panied by a copy of the current year's tax xxxx. The
Tenant's liability for this payment shall be pro-rated for any part of theyear
the Tenant does not occupy the Rental Space under this Lease.
11. ACCEPTANCE OF RENTAL SPACE
This clause void.
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12. QUIET ENJOYMENT
The Landlord has the right to enter into this Lease. If the Tenant
complies with this Lease, the Landlord must provide the Tenant with
undisturbed possession of the Rental Space.
13. UTILITIES AND SERVICES
The tenant shall arrange and pay for all utilities and
services required for the rental space, including the
following:
(a) Heat (c) Electric
(b)Hot and cold water (d)Gas
The Landlord shall pay for the following utilities and services: snow
removal; Maintenance of all common areas, walks and parking lot. The
Landlord is not liable for any inconvenience or harm caused by any stoppage
or reduction of utilities and services beyond the control of the Landlord.
This does not excuse the tenant from paying rent.
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14. TENANT'S REPAIRS, MAINTENANCE, AND COMPLIANCE
The Tenant shall:
(a) Promptly comply with all laws, orders, rules and requirements of
governmental authorities, insurance carriers, board of fire underwriters, or
similar groups.
(b) Maintain the Rental Space and all equipment
and fixtures in it in good repair and appearance.
(c) Make all necessary repairs to the Rental Space and all equipment
and fixtures in it, except structural repairs.
(d) Maintain the Rental Space in a neat, clean, safe, and sanitary
condition, free of all garbage.
(e) Void
(f) Use all electric, plumbing and other facilities in
the Rental Space safely.
(g) Use no more electricity than the wiring or feed-
ers to the Rental Space can safely carry.
(h) Promptly replace all broken glass in the Rental
installed Space.
(i) Do nothing to destroy, deface, damage, or
remove any part of the Rental Space.
(j)Keep nothing in the Rental Space, which is inflammable, dangerous
or explosive or which might increase the danger of fire or other casualty.
(k) Promptly notify the Landlord when there are
conditions which need repair.
(1) Do nothing to destroy the peace and quiet of the Landlord, other
tenants, or persons in the neighborhood.
(m) Avoid littering in the building or on its grounds.
The Tenant shall pay any expenses involved in comply-
ing with the above.
15. LANDLORD'S REPAIRS AND MAINTENANCE
The Landlord shall:
(a) Maintain the public areas, roof and exterior
walls in good condition.
(b) Make all structural repairs unless these repairs are made
necessary by the act or neglect of the Tenant or the Tenant's employees.
(c) Make necessary replacements of the plumbing, cooling, heating
and electrical systems, except when made necessary by the act or neglect of the
Tenant or the Tenant's employees.
(d) Maintain the elevators in the Building, if any.
16. NO ALTERATIONS
The Tenant may not make any changes or additions to
the Rental Space without the Landlord's written consent.
Any changes or additions made without the Landlord's
written consent shall be removed by the Tenant on demand.
All changes or additions made with the Landlord's written consent shall
become the property of the Landlord when completed and paid for by the Tenant.
They shall Remain as part of the rental space at the end of the Term. The
Landlord may demand that the Tenant remove any changes Or additions at the end
of the term. The Tenant shall promptly Pay for all costs of any permitted
changes or additions. The Tenant shall not allow any mechanic's lien or other
claim to be the To be filed against the building. If any lien or claim is filed
Against the Building, the Tenant shall have it promptly removed.
17. SIGNS
The Tenant shall obtain the Landlord's written consent before Placing
any sign on or about the Rental Space. Signs must Conform with all
applicable municipal ordinances and Regulations.
18. ACCESS TO RENTAL SPACE
The Landlord shall have access to the Rental Space on reasonable notice to
the Tenant to (a) inspect the Rental Space (b) make necessary repairs,
alterations, or improvements, (c) supply services, and (d) show it to
prospective buyers, mortgage lenders, contractors or insurers.
The Landlord may show the Rental Space to rental applicants at reasonable
hours on notice to the Tenant within 6 months before the end of the Term.
The Landlord may enter the Rental Space at any time without notice to the
Tenant in case of emergency.
19. FIRE AND OTHER CASUALTY
The Tenant shall notify the Landlord at once of any fire or other casualty
in the Rental Space. The Tenant is not required to pay Rent when the Rental
Space is unusable. If the Tenant uses part of the Rental Space, the Tenant must
pay Rent pro-rata for the usable part.
If the Rental Space is partially damaged by fire or other casualty, the
Landlord shall repair it as soon as possible. This includes the damage to the
Rental Space and fixtures installed by the Landlord. The Landlord need not
repair or replace anything installed by the Tenant. Either party may cancel
this Lease if the Rental Space is so damaged by fire or other casualty that it
cannot be repaired within 18 days. If the parties cannot agree, the opinion of
a contractor chosen by the Landlord and the Tenant will be binding on both
parties. This Lease shall end if the Rental Space is totally destroyed. The
Tenant shall pay Rent to the date of Destruction.
20. EMINENT DOMAIN
Eminent domain is the right of a government to lawfully condemn and take private
property for public use. Fair value must be paid for the property. The taking
occurs either by court order or by deed to the condemning party. If any part of
the Rental Space is taken by eminent domain, either party may cancel this lease
on 30 days notice to the other. The entire payment for the taking shall belong
to the Landlord. The Tenant shall make no claim for the value of this Lease for
the remaining part of the Term.
21. SUBORDINATION TO MORTGAGE
In a foreclosure sale all mortgages which now or in the future affect the
Building have priority over this Lease. This means that the holder of a
mortgage may end. this Lease on a foreclosure sale. The Tenant shall sign all
papers needed to give any mortgage priority over this Lease. If the Tenant
refuses, the Landlord may sign the papers on behalf of the Tenant.
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22. Tenant's Certificate
At the request of the Landlord, the Tenant shall sign a certificate stating
that (a) this Lease has not been amended and is in effect, (b) the Landlord has
fully performed all
Landlord's agreements in this Lease, (c) the Tenant has no rights to the Rental
Space except as stated in this Lease,
the Tenant has paid all Rent to date, and (e) the Tenant has not paid Rent for
more than one month in advance. The Certificate shall also list all the property
attached to the Rental Space owned by the Tenant.
23. Violation, Eviction, Re-entry and Damages
The Landlord reserve a right of re-entry which allows the
Landlord to end this lease and re-enter the Rental Space if the Tenant violates
any agreement in this Lease. This is done by Eviction. Eviction is a court
procedure to remove a tenant. Eviction is started by the filing of a complaint
in court and the service of the summons on a tenant to appear in court. The
Landlord may also evict the Tenant for any one of the other grounds of good
cause provided by law. After a court order of eviction compliance with the
order of removal, the Landlord may re-enter and take back possession of the
Rental Space. If the cause for eviction is non-payment of Rent, notice does
not have to be given to the Tenant before the Landlord files a complaint. If
there is any other cause to evict, the Landlord must give to the Tenant the
notice required by law before the Landlord files a complaint for eviction.
The Tenant is liable for all damages caused by the Tenant's violation of
any agreement in this Lease. This includes reasonable attorney's fees and costs.
After eviction the Tenant shall pay the Rent for the Term or until the
Landlord re-rents the Rental Space, if sooner. If the Landlord re-rents the
Rental Space for less than the Tenant's Rent, the Tenant shall pay the
difference until the end of the Term. The Tenant shall not be entitled to any
excess resulting from the re-renting. The Tenant shall also pay (a) all
reasonable expenses incurred by the Landlord in preparing the Rental Space for
re-renting and (b) commissions paid to a the broker for finding a new tenant.
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24. NOTICES
All notices given under this Lease must be in writing.
Each party must accept and claim the notices given by the
other. Unless otherwise provided by law, they may be given by
(a) personal delivery, or (b) certified mail, return receipt
requested. Notices shall be addressed to the Landlord at the
address written at the beginning of this Lease and to the
Tenant at the Rental Space.
25. NO WAIVER
The Landlord's failure to enforce any agreement in this Lease shall not
prevent the Landlord from enforcing the agreement for any violations occurring
at a later time.
26. Survival
If any agreement in this Lease is contrary to law, the rest of the Lease
shall remain in effect.
27. End of Term
At the end of the Term the Tenant shall (a) leave the Rental Space clean,
(b) remove all of the Tenant's property, (c) remove all signs and restore that
portion of the Rental Space on which they were placed, (d) repair all damage
caused by moving, and (e) return the Rental Space to the Landlord in the same
condition as it was at the beginning of the Term except for normal wear and
tear.
If the Tenant leaves any property in the Rental Space, the
Landlord may (a) dispose of it and charge the Tenant for the cost of disposal,
or (b) keep it as abandoned property.
28. Binding
This Lease binds the Landlord and the Tenant and all parties who lawfully
succeed to their rights or take their places.
29. Full Agreement
The parties have read this Lease. It contains their full agreement. It may
not be changed except in writing signed by the Landlord and the Tenant.
SEE ADDENDUM ATTACHED HERETO AND EXHIBITS ATTACHED THERETO.
Schedule B
MOUNTAIN AVENUE
LEASEHOLD IMPROVEMENTS
BY
SKYLANDS COMMUNITY BANK
DESCRIPTION VALUE
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Interior Fit Ups $194,488
Alarm System with Video Surveillance 23,110
Telephone and Computer Cabling 12,455
Millwork with Undercounter 47,118
Interior Finishes (Flooring & Wall covering) 120,307
Drive-up with Bullet Resistant Window 13,995
Vault with Safe Deposit Boxes & Cash Lockers 39,719
Signage 21,730
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Total $472,922
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Addendum to Lease
Between
Skylands Community Bank, Tenant
And
Xxx Xxxxxxxx and Xxx Xxxxxxxx
I. The rent includes real estate taxes and all CAM charges without additional
cost to the Tenant except as set forth in paragraph 5 of this Addendum in
respect to real estate taxes.
2. Option to Renew:
a) The Tenant shall, provided it is not in default of any of
the terms and condition of this Lease, have the option to renew this Lease for
two (2) additional terms of Five (5) years each commencing at the expiration of
each term of this Lease (the "Renewal Term"). The Renewal Term shall be governed
by the provisions of this Lease, and except that the Annual Rent for the Demised
Premises shall be as provided below in subparagraph b) and provided that Tenant
shall give Landlord notice by certified mail, return receipt requested, of its
intention to exercise each option, no later than six (6) months prior to the
expiration of the each Term of this Lease.
b) The Annual Basic Rent during each year of each Renewal
Term, if the option(s) provided in Paragraph 2(a) shall be exercised by Tenant,
shall be paid in twelve (12) equal monthly installments in advance, without
demand, on the first day of each and every month during the Renewal Terms hereof
as follows:
First Renewal Term Monthly Rent $14,166.67.
Second Renewal Term Monthly Rent $15,833.33.
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3. Attached hereto as Exhibit "B" is a list of those improvement for which the
Tenant will be responsible, pay for, and install and those improvements for
which the Landlord will be responsible, pay for, and install.
3. In addition to the rental space set for above, there is also leased to the
Tenant the entire basement area under the first floor (except that Landlord
shall have the right to retain 100 square feet). There shall be no separate rent
for the basement space, however, the square footage of the basement space shall
be included in the percentage of the Plaza for which the Tenant shall be
responsible for
5. The landlord shall pay the yearly Municipal Real Estate Taxes on the land and
building. The base year shall be the first year in which the entire Plaza is
fully assessed as a completed development. The Tenant shall pay the Percent of
Increase (28%) of each yearly increase in the Municipal Real Estate Taxes over
the tax for the Base Year. The Tenant shall pay this amount yearly in one sum
within 30 days of the Landlord's written request accompanied by a copy of the
current year's tax xxxx. The Tenant's liability for this payment shall be
pro-rated for any part of the year the Tenant does not occupy the Rental Space
under this Lease.
6. Assignment or Sublet: The Tenant shall be permitted to assign this Lease
and/or any part of the rental space but such sublet or assignment shall not
release the Tenant from liability hereunder.
7. If any circumstances in this Lease require the Landlord's consent, said
consent shall not unreasonably be withheld.
Witness as to Tenant: Skylands Community Bank, Tenant
________________ /s/ Xxxxxxx Xxxxxx
Witness as to Landlord /s/ Xxx Xxxxxxxx
XXX XXXXXXXX,LANDLORD
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/s/ Van Paftinos
VAN PAFTINOS, LANDLORD
