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EXHIBIT 10.7
STORE LEASE
DATE OF LEASE TERM OF LEASE MONTHLY RENT
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Yr. 1 - $4,238.50
BEGINNING ENDING Yr. 2 - $4,344.46
11/1/1994 Yr. 3 - $4,453.07
Yr. 4 - $4,564.40
Yr. 5 - $4,678.51
12/1/1994 11/30/1999
LOCATION OF PREMISES: 384 common area
810 A South Waukegan Road 1692
Lake Forest, IL 60045 ----
2076 sq. ft.
PURPOSE:
Bank
LESSEE LESSOR
Name Lake Forest Bank & Trust R&R Enterprises
Address 727 N. Bank Lane 810 S. Waukegan Rd.
City Lake Forest, IL 60045 Lake Forest, IL 60045
In consideration of the mutual covenants and agreements herein stated,
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for
the above purpose the premises designated above (the "Premises"), together with
the appurtenances thereto, for the above Term.
RENT
1. Lessee shall pay Lessor or Lessor's agent as rent for the
Premises the sum stated above, monthly in advance, until termination of this
lease, at Lessor's address stated above or such other address as Lessor may
designate in writing.
WATER, GAS AND ELECTRIC CHARGES
2. Lessee will pay, in addition to the rent above specified, all
water rents, gas and electric light and power bills taxed, levied or charged on
the Premises, for and during the time for which this lease is granted, and in
case said water rents and bills for gas, electric light and power shall not be
paid when due, Lessor shall have the right to pay the same, which amounts so
paid, together with any sums paid by Lessor to keep the Premises in a clean and
healthy condition, as herein specified, as declared to be so much additional
rent and payable with the installment of rent next due thereafter.
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SUBLETTING; ASSIGNMENT
3. The Premises shall not be sublet in whole or in part to any
person other than Lessee, and Lessee shall not assign this lease without, in
each case, the consent in writing of Lessor first had and obtained, nor permit
to take place by any act or default of himself or any person within his control
any transfer by operation of law of Lessee's interest created hereby; nor offer
for lease or sublease the Premises, nor any portion thereof, by placing notices
or signs of "To Let," or any other similar signs or notice in any place, nor by
advertising the same in any newspaper or place or manner whatsoever without, in
each case, the consent in writing of Lessor first had and obtained. If Lessee,
or any one or more of the Lessees, if there be more than one, shall make an
assignment for the benefit of creditors, or shall be adjudged a bankruptcy,
Lessor may terminate this lease, and in such event Lessee shall at once pay
Lessor a sum of money equal to the entire amount of rent reserved by this lease
for the then unexpired portion of the term hereby created as liquidated
damages.
LESSEE NOT TO MISUSE
4. Lessee will not permit any unlawful or immoral practice, with
or without his knowledge or consent, to be committed or carried on in the
Premises by himself or by any other person. Lessee will not allow the Premises
to be used for any purpose that will increase the rate of insurance thereon,
nor for any purpose other than that hereinbefore specified. Lessee will not
keep or use or permit to be kept or used in or on the Premises or any place
contiguous thereto any flammable fluids or explosives, without the written
permission of Lessor first had and obtained. Lessee will not load floors
beyond the floor load rating prescribed by applicable municipal ordinances.
Lessee will not use or allow the use of the Premises for any purpose whatsoever
that will injure the reputation of the Premises or of the building of which
they are a part.
CONDITION ON POSSESSION
5. Lessee has examined and knows the condition of the Premises
and has received the same in good order and repair, and acknowledges that no
representations as to the condition and repair thereof and no agreements or
promises to decorate, alter, repair or improve the Premises, have been made by
Lessor or his agent prior to or at the execution of this lease that are not
herein expressed.
REPAIRS AND MAINTENANCE
6. Lessee shall keep the Premises and appurtenances thereto in a
clean, sightly and healthy condition and in good repair, all according to the
statutes and ordinances in such cases made and provided, and the directions of
public officers thereunto duly authorized, all at his own expenses, and shall
yield the same back to Lessor upon the termination of this lease, whether
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such termination shall occur by expiration of the termor in any other manner
whatsoever, in the same condition of cleanliness, repair and sightliness as at
the date of the execution hereof, loss by fire and reasonable wear and tear
excepted Lessee shall make all necessary repairs and renewals upon Premises and
replace broken globes, glass and fixtures with material of the same size and
quality as that broken and shall insure all glass in windows and doors of the
Premises at his own expense. If, however, the Premises shall not thus be kept
in good repair and in a clean, sightly and healthy condition by Lessee, as
aforesaid, lessor may enter the same, himself or by his agents, servants or
employees, without such entering causing or constituting a termination of this
lease or an interference with the possession of the Premises by Lessee, and
Lessor may replace the same in the same condition of repair, sightliness,
healthiness and cleanliness as existed at the date of execution hereof, and
Lessee agrees to pay Lessor, in addition to the rent hereby reserved, the
expenses of Lessor in thus replacing the Premises in that condition. Lessee
shall not cause or permit any waste, misuse or neglect of the water, or of the
water, gas or electric fixtures.
ACCESS TO PREMISES
7. Lessee will allow Lessor or any person authorized by Lessor
free access to the Premises for the purpose of examining or exhibiting the
same, or to make any repairs or alterations thereof which Lessor may see fit to
make, and Lessee will allow Lessor to have placed upon the Premises at all
times notices of "For Sale" and "For Rent", and Lessee will not interfere with
the same.
NON-LIABILITY OF LESSOR
8. Except as provided by Illinois statute, Lessor shall not be
liable to Lessee for any damage or injury to him or his property occasioned by
the failure of Lessor to keep the Premises in repair, and shall not be liable
for any injury done or occasioned by wind or by or from any defect of plumbing,
electric wiring or of insulation thereof, gas pipes, water pipes or steam
pipes, or from broken stairs, porches, railings or walks, or from the backing
up of any sewer pipe or down-spout, or from the bursting, leaking or running of
any tank, tub, washstand, water closet or waste pipe, drain, or any other pipe
or tank in, upon or about the Premises or the building of which they are a part
nor from the escape of steam or hot water from any radiator, it being agreed
that said radiators are under the control of Lessee, nor for any such damage or
injury occasioned by water, snow or ice being upon or coming through the roof,
skylight, trap-door, stairs, walks or any other place upon or near the
Premises, or otherwise, nor for any such damage or injury done or occasioned by
the falling of any fixture, plaster or stucco, nor for any damage or injury
arising from any act, omission or negligence of co-tenants or of other persons,
occupants of the same building or of adjoining or contiguous buildings or of
owners of adjacent or contiguous property, or of Lessor's agents or Lessor
himself, all claims for any such damage or injury being hereby expressly waived
by Lessee.
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RESTRICTIONS (SIGNS, ALTERATIONS, FIXTURES)
9. Lessee shall not attach, affix or exhibit or permit to be
attached, affixed or exhibited, except by Lessor or his agent, any articles of
permanent character or any sign, attached or detached, with any writing or
printing thereon, to any window, floor, ceiling, door or wall in any place in
or about the Premises, or upon any of the appurtenances thereto, without in
each case the written consent of Lessor first had and obtained, and shall not
commit or suffer any waste in or about said premises; and shall make no changes
or alterations in the Premises by the erection of partitions or the papering of
walls, or otherwise, without the consent in writing of Lessor; and in case
Lessee shall affix additional locks or bolts on doors or window, or shall place
in the Premises lighting fixtures shall remain for the benefit of Lessor, and
without expense of removal or maintenance to Lessor. Lessor shall have the
privilege of retaining the same if he desires if he does not desire to retain
the same, he may remove and store the same, and Lessee agrees to pay the
expense of removal and storage thereof. The provisions of this paragraph shall
not however apply to Lessee's trade fixtures, equipment and moveable furniture.
HEAT
10. Where building is equipped for the purpose, Lessor shall
furnish to Lessee a reasonable amount of heat, from October 1st to May 1st,
whenever in Lessor's judgment necessary for comfortable use of the Premises,
during customary business hours (excluding Sundays and holidays), but not
earlier than 8 a.m. not later than 6 p.m. unless specifically stated herein.
Lessor does not warrant that heating service will be free from interruptions
caused by strike, accident or other cause beyond the reasonable control of
Lessor, or by renewal or repair of the heating apparatus in the building. Any
such interruption shall not be deemed an eviction or disturbance of Lessee's
use and possession of Premises, nor render Lessor liable to Lessee in damages.
All claims against Lessor for injury or damage arising from failure to furnish
heat are hereby expressly waived by Lessee.
FIRE AND CASUALTY
11. In case the Premises shall be rendered untenantable by fire,
explosion or other casualty, Lessor may,a this option, terminate this lease or
repair the Premises within sixty days. If Lessor does not repair the Premises
within said time, or the building containing the Premises shall have been
wholly destroyed, the term hereby created shall cease and determine.
TERMINATION; HOLDING OVER
12. At the termination of the term of this lease, by lapse of time
or otherwise, Lessee will yield up immediate possession of the Premises to
Lessor, in good condition and repair, loss by fire and ordinary wear excepted,
and will return the keys therefor to Lessor at the place of payment of rent.
If Lessee retains possession of the Premises or any part hereof after the
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termination of the term by lapse of time or otherwise, then Lessor may at its
option within thirty days after termination of the term serve written notice
upon Lessee that such holding over constitutes either [(a) RENEWAL OF THIS LESE
FOR ONE YEAR, AND FROM YEAR TO YEAR THEREAFTER, AT DOUBLE THE RENTAL (COMPUTED
ON AN ANNUAL BASIS) SPECIFIED IN SECTION 1, OR (b) CREATION OF A MONT TO MONTH
TENANCY, UPON THE TERMS OF THIS LEASE EXCEPT AT DOUBLE THE MONTHLY RENTAL
SPECIFIED IN SECTION 1, OR] (c) creation of a tenancy at sufferance, at a
rental of $150.00 dollars per day for the time Lessee remains in possession.
If no such written notice is served then a tenancy at sufferance with rental as
stated at (c) shall have been created. Lessee shall also pay to Lessor all
damages sustained by Lessor resulting from retention of possession by Lessee.
The provisions of this paragraph shall not constitute a waiver by Lessor of any
right of re-entry as hereinafter set forth; nor shall receipt of any rent or
any other act in apparent affirmance of tenancy operate as a waive of the right
to terminate this lease for a breach of any of the covenants herein.
LESSOR'S REMEDIES
13. If Lessee shall vacate or abandon the Premises or permit the
dame to remain vacant or unoccupied for a period of ten days, or in case of the
non-payment of the rent reserved hereby, or any part thereof, or of the breach
of any covenant in this lease contained. Lessee's right to the possession of
the Premises thereupon shall terminate with or (to the extent permitted by law)
without any notice or demand whatsoever, and the mere retention of possession
thereafter by Lessee shall constitute a forcible detainer of the Premises; and
if the Lessor so elects, but not otherwise, and with or without notice of such
election or any notice or demand whatsoever, this lease shall thereupon
terminate, and upon the termination of Lessee's right of possession, as
aforesaid, whether this lease be terminated or not, Lessee agrees to surrender
possession of the Premises immediately, without the receipt of any demand for
rent, notice to quit or demand for possession of the Premises whatsoever, and
hereby grants to Lessor full and free license to enter into and upon the
Premises or any part thereof, to take possession thereof with or (to the extent
permitted by law) without process of law, and to expel and to remove Lessee or
any other person who may be occupying the Premises or any part thereof, and
Lessor may use such force in and about expelling and removing Lessee and other
persons as may reasonably be necessary, and Lessor may re-possess himself of
the Premises as of his former estate, but such entry of the Premises shall not
constitute a trespass or forcible entry or detainer, nor shall it cause a
forfeiture of rents due by virtue thereof, nor a waiver of any covenant,
agreement or promise in this lease contained, to be performed by Lessee.
Lessee hereby waives all notice of any election made by Lessor hereunder,
demand for rent, notice to quit, demand for possession, and any and all notices
and demands whatsoever, of any and every nature, which may or shall be required
by any statute of this state relating to forcible entry and detainer, or to a
landlord and tenant, or any other statute, or by the common law, during the
term of this lease or any extension thereof. The acceptance of rent, whether
in a single instance or repeatedly, after it falls due, or after knowledge of
any breach hereof by Lessee, or the giving or making of nay notice or demand,
whether according to any statutory provision or not, or any
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act or series of acts except an express written waiver, shall not be construed
as a waiver of Lessor's right to act without notice or demand or of any other
right hereby given Lessor, or as an election not to proceed under the
provisions of this lease.
RIGHT TO RELET
14. If Lessee's right to the possession of the Premises shall be
terminated in any way, the Premises, or any part thereof, may, but need not
(except as provided by Illinois statute), be relet by Lessor, for the account
and benefit of Lessee, for such rent and upon such terms and to such person or
persons and for such period or periods as may seem fit to the Lessor, but
Lessor shall not be required to accept or receive any tenant offered by Lessee,
nor to do any act whatsoever or exercise any diligence whatsoever, in or about
the procuring of another occupant or tenant to mitigate the damages of Lessee
or otherwise, Lessee hereby waiving the use of any care or diligence by Lessor
in the reletting thereof; and if a sufficient sum shall not be received from
such reletting to satisfy the rent hereby reserved, after paying the expenses
of reletting and collection, including commissions to agents, and including
also expenses of redecorating, Lessee agrees to pay and satisfy all deficiency;
but the acceptance of a tenant by Lessor, in place of Lessee, shall not operate
as a cancellation hereof, nor to release Lessee from the performance of any
covenant, promise or agreement herein contained, and performance by any
substituted tenant by the payment of rent, or otherwise, shall constitute only
satisfaction pro tanto of the obligations of Lessee arising hereunder.
COSTS AND FEES
15. Lessee shall pay upon demand all lessor's costs, charges and
expenses, including fees of attorneys, agents and others retained by Lessor,
incurred in enforcing nay of the obligations of Lessee under this lease or in
any litigation, negotiation or transaction in which Lessor shall, without
Lessor's fault, become involved through or on account of this lease.
CONFESSION OF JUDGMENT
16. Lessee hereby irrevocably constitutes and appoints any
attorney or any court of record in this State, to be his true and lawful
attorney for him and in his name AND STEAD, to enter his appearance in any suit
or suits that may be brought in any court in this state at any time when any
money is due hereunder for rent or otherwise, to waive the issuing of process
and service thereof and trial by jury or otherwise, and to confess a judgment
or judgments for such money so due and for costs of suit and for reasonable
attorney's fees in favor of Lessor, and to release all errors that may occur or
intervene in such proceedings, including the issuance of execution upon any
such judgment, and to stipulate that no writ of error or appeal shall be
prosecuted from such judgment or judgments, nor any bill in equity filed, nor
any proceedings of any kind taken in law or equity to interfere in any way with
the operation of such judgment
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or judgments or of execution issued thereon and to consent that execution may
immediately issue thereon.
LESSOR'S LIEN
17. Lessor shall have a first lien upon the interest of Lessee
under this lease, to secure the payment of all moneys due under this lease,
which lien may be foreclosed in equity at any time when money is overdue under
this lease; and the Lessor shall be entitled to name a receiver of said
leasehold interest to be appointed in any such foreclosure proceeding, who
shall take possession of said premises and who may relet the same under the
orders of the court appointing him.
REMOVAL OF OTHER LIENS
18. In event any lien upon Lessor's title results form any act or
neglect of Lessee, and Lessee fails to remove said lien within ten days after
Lessor's notice to do so, Lessor may remove the lien by paying the full amount
thereof or otherwise and without any investigation or contest to the validity
thereof, and Lessee shall pay Lessor upon request the amount paid out by Lessor
in such behalf, including Lessor's costs, expenses and counsel fees.
REMEDIES NOT EXCLUSIVE
19. The obligation of Lessee to pay the rent reserved hereby
during the balance of the term hereof, or during any extension hereof, shall
not be deemed to be waived, released or terminated, nor shall the right and
power to confess judgment given in paragraph 16 hereof be deemed to be waived
or terminated by the service of any five-day notice, other notice to collect,
demand for possession, or notice that the tenancy hereby created will be
terminated on the date therein named, the institution of any action of forcible
detainer or ejectment or any judgment for possession that may be rendered in
such action, or any other act or acts resulting in the termination of Lessee's
right to possession of the Premises. The Lessor may collect and receive any
rent due from Lessee, and payment or receipt thereof shall not waive or affect
any such notice, demand, suit or judgment, or in any manner whatsoever waive,
affect, change, modify or alter any rights or remedies which Lessor may have by
virtue hereof.
NOTICES
20. Notices may be served on either party, at the respective
addresses given at the beginning of this lease, either (a) by delivering or
causing to be delivered a written copy thereof, or (b) by sending a written
copy thereof by United States certified or registered mail, postage prepaid,
addressed to lessor or Lessee at said respective addresses in which event the
notice shall be deemed to have been served at the time the copy is mailed.
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MISCELLANEOUS
21. (a) Provisions typed on this lease and all rider attached to
this lease and signed by Lessor and Lessee are hereby made a part of this
lease.
(b) Lessee shall keep and observe such reasonable rules and
regulations now or hereafter required by Lessor, which may be necessary for the
proper and orderly care of the building of which the Premises are a part.
(c) All covenants, promises, representations and agreements
herein contained shall be binding upon, apply and inure to the benefit of
Lessor and Lessee and their respective heirs, legal representatives, successors
and assigns.
(d) The rights and remedies hereby created are cumulative and
the use of one remedy shall not be taken to exclude or waive the right to the
use of another.
(e) The words "Lessor" and "Lessee" wherever used in this
lease shall be construed to mean Lessors or Lessees in all cases where there is
more than one Lessor or Lessee, and to apply to individuals, male or female, or
to firms or corporations, as the same may be described as Lessor or Lessee
herein, and the necessary grammatical changes shall be assumed in each case as
though fully expressed. If there is more than one Lessee the warrant of
attorney in paragraph 16 is given jointly and shall authorize the entry of
appearance of, and waiver of issuance of process and trial by jury by, and
confession of judgment against any one or more of such Lessees, and shall
authorize the performance of every other act in the name of and on behalf of
any one or more of such Lessees.
SEVERABILITY
22. If any clause, phrase, provision or portion of this lease or
the application thereof to any person or circumstance shall be invalid, or
unenforceable upon applicable law, such event shall not affect, impair or
render invalid, or unenforceable under applicable law, such event shall not
affect, impair or render invalid or unenforceable the remainder of this lease
nor any other clause, phrase, provision or portion hereof, nor shall it affect
the application of any clause, phrase, provision hereof to other persons or
circumstances.
WITNESS the hands and seals of the parties hereto, as of the Date of
Lease stated above.
LESSEE LESSOR
By:________________________(seal) By:_______________________________(seal)
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ASSIGNMENT BY LESSOR
On this ___________________________________________, 19____, for value
received, Lessor hereby transfers, assigns and sets over to __________________
all right, title and interest in and to the above Lease and the rent thereby
reserved except rent due and payable prior to ___________, 19.
_______________________________________
_______________________________________
GUARANTEE
On this __________________________________, 19_____ in consideration
of Ten Dollars ($10.00) and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the undersigned Guarantor
hereby guarantees the payment of rent and performance by Lessee. Lessee's
heirs, executors, administrators, successors or assigns of all covenants and
agreements of the above lease.
_______________________________________
_______________________________________
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RIDER TO LEASE
This Rider is attached to and made a part of that certain Lease dated
November 1, 1994, by and between R & R Enterprises ("Lessor") and Lake Forest
Bank & Trust Company ("Lessee") for the premises commonly known as 810 A South
Waukegan Road, Lake Forest, Illinois 60045 for a five year term commencing
December 1, 1994 and expiring November 30, 1999.
23. In addition to the monthly based rental as set forth on page
one of the pre-printed form of this lease to which this Rider is attached,
Lessee shall pay on a monthly basis his ratable share of the total real estate
taxes and common area maintenance and expenses.
EXAMPLE:
Tenant space - 2,076 square feet
________________________________________________________________________________
Shopping Center sq. ft. 18, 206 div. 2,076 = 11.4%
Taxes at $25,000 X 11.40% = $2,850 divided by 12 = $237.50
Common area maintenance Projection at $30,000 X 11.40% = $3,420 divided by 12 =
$285.00
________________________________________________________________________________
The following maintenance and expense items and their represented
monthly amounts shall include:
All expenses paid or incurred by Lessor in the normal and route
operating, managing, equipping, protecting, insuring, lighting
repairing, replacing, or maintaining the Common Areas and facilities
in the subject Shopping Center, including but not limited to, the
wages and salaries of all employees engaged in operation and
maintenance of the Shopping Center, including employer's social
security taxes which may be levied on such wages and salaries; all
janitorial and office supplies and materials used in the normal
routine operation and maintenance of the Shopping center; the cost of
water and Common Area power, lighting, insurance premiums, the cost of
repairs and maintenance, exclusive of expenses for alteration of
premises for the accommodation of a specific Lessee or Lessees.
Upon thirty (30) days prior written notice, Lessee shall have the
right to review the building's expenses, vouchers, and the proof of expense for
which he is being billed pursuant to this paragraph of the Rider.
24. The Lease will be for a five year term, with an option of the
Lessee to renew upon 6 months prior to the end of the initial term for an
additional 5 year lease.
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25. Upon execution of this Lease by both parties hereto the Lessee
shall be responsible for the depositing of the first and last month's rent plus
a one month security deposit, which sum totals $13,155.51.
26. Rent Escalation: Commencing 12 months after the date of the
term of the Lease commences, and on each one-year anniversary thereof, the rent
shall be increased by 2 1/2% each 2 1/2% month term.
27. In the event of any late rental payments, Lessee agrees to pay
a 15% penalty for late payments received by Lessor after the fourth day of the
month.
LESSEE: LESSOR:
LAKE FOREST BANK & TRUST CO. R & R ENTERPRISES
___________________________________ _______________________________________
Randolph M. Hibben Richard M. Swanson
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