LEASE
Exhibit
10.42
LEASE
BY
THIS
LEASE dated July 15, 2005, The Xxxxx Family Trust dated July 25, 1992,
("Lessor") leases to Heritage Oaks Bank, ("Lessee”) that certain real property,
(“premises") in the City of Atascadero, County of San Xxxx Obispo, State of
California, commonly known as 0000 Xx Xxxxxx Xxxx, Xxxxxxxxxx, Xxxxxxxxxx.
The
premises consist of a commercial lot and two story building with on-site
parking.
ARTICLE
1. TERM OF LEASE
Original
Term
Section
1.01. This lease shall be for a term of five (5) years commencing at 12:00
a.m.
on August 13, 2005, and ending at 11:59 p.m. on August 12, 2010 unless sooner
terminated, or extended, as provided in this agreement.
Extended
Term
Section
1.02. Should Lessee perform all the terms and conditions of this lease for
the
full term specified in Section 1.01 of this lease, Lessee may extend this
lease
for four (4) additional terms of five (5) years each, commencing on expiration
of the previous term, by giving Lessor written notice of Lessee's desire
to do
so at least ninety (90) days prior to expiration of the immediately preceding
term specified above.
Hold
Over
Section
1.03. Should Lessee hold over and continue in possession of the premises
after
expiration of the term of this lease or any extension thereof, Lessee's
continued occupancy of the premises shall be considered a month-to-month
tenancy
subject to all of the terms and conditions of this lease.
Lessor's
Inability to Deliver Possession
Section
1.04. Should Lessor for any reason be unable to deliver possession of the
premises to Lessee on the date specified in Section 1.01 of this lease as
the
date on which the term of this lease is to commence, this lease shall not
be
void or voidable nor shall Lessor be liable to Lessee for any loss or damage
resulting from such failure to deliver possession to Lessee so long as Lessor
has exercised, and continues to exercise, reasonable diligence to deliver
possession of the premises to Lessee. No rent shall, however, accrue or become
due from Lessee to Lessor under this lease until the actual physical possession
of the premises is delivered, or the right to actual physical possession
of the
premises is delivered, or the right to actual, unrestricted physical possession
of the premises under this lease is tendered, by Lessor to Lessee. Furthermore,
the term of this lease shall not be extended by Lessor's inability to deliver
possession of the premises to Lessee on the date specified in Section 1.01
for
commencement of the term of this lease.
ARTICLE
2. RENT
Minimum
Rent Section 2.01. For the first five (5) years of the term hereof, Lessee
agrees to pay to Lessor a fixed minimum rental for the use and occupancy
of the
premises of $5,026.45 per month payable on the first (1st) day of each and
every
month commencing September 1, 2005, prorated for any partial months, at the
mailing address of Lessor at 0000 Xxxxxxxx Xxxx, Xxxx Xxxxxx, XX 00000,
California, or any such other place as Lessor may from time to time designate
by
written notice delivered to Lessee.
Rent
Adjustment
Section
2.02. The minimum monthly rent provided for herein shall be subject to
adjustment at the end of the fifth year of this lease, ("the adjustment date")
as follows:
The
base
for computing the adjustment is The Consumer price Index for All Items for
All
Urban Consumers in the Los Angeles-Long Beach-Anaheim Metropolitan Area,
published by the United States Department of Labor, Bureau of Labor Statistics
("Index"), which is last published prior to the date of the commencement
of the
term ("Beginning Index"). If the Index last published prior to the adjustment
date ("Extension Index") has increased over the Beginning Index, the minimum
monthly rent for the following term (until the next rent adjustment) shall
be
set by multiplying $5,026.45 by a fraction, the numerator of which is the
Extension Index and the denominator of which is the Beginning Index. Upon
adjustment of the minimum monthly rent as provided in this section, the parties
shall immediately execute an amendment to this lease stating the new minimum
monthly rent, which shall be subject to adjustment on the following adjustment
date.
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If
the
Index is changed so that the base year differs from that used immediately
preceding the month in which the term commences, the Index shall be converted
in
accordance with the conversion factor published by the United States Department
of Labor, Bureau of labor Statistics. If the Index is discontinued or revised
during the term, such other government index or computation with which it
is
replaced shall be used in order to obtain substantially the same result as
would
be obtained if the Index had not been discontinued or revised.
If
Lessee
exercises its options for additional lease terms, the rent for each new term
shall be determined using the same computation, using the base rent from
the
previous term as the multiplier and the Extension Index from the previous
term
as the denominator of the fraction.
Utilities
and Taxes
Section
2.03.
(a)
This
is a net lease, and Lessee shall pay all utilities, including electricity,
gas,
water, sewer, trash collection, and telephone, and real property taxes assessed
against the property. Lessor shall provide Lessee with real property tax
bills
as they are received to facilitate timely payment of the taxes by
Lessee.
Personal
Property Taxes
(b)
Lessee shall pay before they become delinquent all taxes, assessments, or
other
charges levied or imposed by any governmental entity on the personal property
placed by Lessee in, on, or about the premises.
Late
Charges
Section
2.04. If any installment of rent or other payment required to be paid by
Lessee
to Lessor is not paid within ten (10) days of the date on which it is due,
a
late charge equal to five percent (5%) of the late payment shall be due from
Lessee to Lessor to compensate Lessor for the additional administrative work
caused by such default and to compensate Lessor for the loss of use of such
defaulted payment. The late charge herein shall be in addition to any other
remedy which Lessor may have hereunder for such default.
ARTICLE
3. USE OF PREMISES
Permitted
Use
Section
3.01. The premises shall, during the term of this lease and any extensions
thereof, be used for the purpose of operating a retail banking branch office,
for uses normally incident to such purpose, and for no other purpose without
the
prior written consent of Lessor.
Insurance
Hazards
Section
3.02. Lessee shall not commit or permit the commission of any acts on the
premises or use or permit the use of the premises in any manner that will
increase the existing rates for or cause the cancellation of any fire,
liability, or other insurance policy insuring the premises or the improvements
on the premises.
Waste
or
Nuisance
Section
3.03 Lessee shall not commit or permit the commission by others of any waste
on
the premises; Lessee shall not maintain, commit, or permit the maintenance
or
commission of any nuisance as defined in Section 3479 of the California Civil
Code on the premises; and Lessee shall not use or permit the use of the premises
for any unlawful purpose.
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Compliance
with Law
Section
3.04. Lessee
shall at Lessee's own cost and expense comply with all statutes, ordinances,
regulations, and requirements of all governmental entities, both Federal
and
State and County or Municipal, relating to lessee's use and occupancy of
the
premises whether such statutes, ordinances, regulations, and requirements
are
now in force or later enacted. The judgment of any court of competent
jurisdiction, or the admission by Lessee in a proceeding brought against
Lessee
by any government entity, that Lessee has violated any such statute, ordinance,
regulation, or requirement shall be conclusive as between Lessor and Lessee.
Lessor agrees that any requirements of the Municipal, State, or Federal
authorities which require alteration of Lessor's building shall not be the
responsibility of Lessee, unless required because of an act or a use of the
premises by Lessee.
ARTICLE
4. ALTERATIONS AND REPAIRS
Conditions
of Premises
Section
4.01. By entering into possession of the premises at the commencement of
the
lease term, Lessee accepts the premises in their present condition and
stipulates with Lessor that the premises are in good, clean, safe, and
tenantable condition. Lessee further represents to Lessor that the premises
have
been inspected by Lessee and that it has been assured by means independent
of
Lessor of the truth of all facts material to this lease and that the premises
are being leased by Lessee as a result of its inspection and investigation
and
not as a result of any representations made by Lessor.
Maintenance
by Lessor
Section
4.02. Lessor shall, at its own cost and expense, maintain in good condition
and
repair the exterior roof and the foundations of the premises; provided that
Lessor shall not be liable for any damages to Lessee or the property of Lessee
resulting from Lessor's failure to make any repairs required by this section
unless written notice of the need for such repairs has been given to Lessor
and
Lessor has failed for a reasonable period, not exceeding 30 days after receipt
of the notice, unless prevented by causes not the fault of the Lessor, to
make
the needed repairs; provided, further, that Lessor shall promptly be reimbursed
by Lessee for the full cost of any repairs made pursuant to this section
required because of the negligence or other fault, other than normal and
proper
use, of Lessee or its employees or sublessees, if any. Lessee shall notify
Lessor by personal delivery or certified mail of any unsafe conditions in
or
about the premises. Lessor shall not be liable to Lessee for any liability
relating to any unsafe conditions on the premises or common areas of which
Lessee is aware or reasonably should have been aware and for which notice
was
not given to Lessor by Lessee.
In
the
event Lessor fails to so maintain the above-described components of the
Premises, Lessee is hereby authorized to do so if reasonably necessary to
protect Lessee's interest hereunder and to deduct the amount expended in
performing Lessor's duty from the rent installment next accruing; provided,
however, that Lessee may not deduct amounts in excess of one (1) month’s rent in
any twelve month period without Lessor's prior written consent. Lessee shall
provide Lessor with written receipts for all sums so deducted, showing the
amount, to whom paid and purpose of such expenditures.
Maintenance
by Lessee
Section
4.03.
(a) Except
as
expressly provided in Section 4.02 above, Lessee shall, at its sole cost
and
expense, maintain all portions of the premises as well as all improvements
on
the premises, including but not limited to the interior walls, window glass,
heating, ventilation and air conditioning systems in premises, in good order
and
repair and in as safe and clean a condition as they were when received by
Lessee
from Lessor, reasonable wear and tear excepted.
(b) Should
Lessee fail to maintain the premises as set forth above, Lessor may, at Lessor's
option, perform such maintenance on behalf of Lessee. In such event, Lessee
shall promptly, on written demand, reimburse Lessor for all cost and expense
incurred by Lessor in performing Lessee's maintenance obligations.
Alterations
and Liens
Section
4.04. Lessee shall not make or permit any other person to make any alterations
to the premises without the written consent of Lessor. Lessee shall keep
the
premises free and clear from any and all liens, claims, and demands for work
performed, materials furnished, or operations conducted on the premises at
the
request of Lessee. Furthermore, any and all alternations, additions,
improvements, and fixtures, except furniture and trade fixtures, made or
placed
in or on the premises by Lessee or any other person shall, upon termination
of
this lease, become the property of Lessor and remain on the premises; provided,
however, that Lessor shall have the option upon termination of this lease
of
requiring Lessee, at Lessee's sole cost and expense, to remove any or all
of
such alterations, additions, improvements, or fixtures from the
premises.
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Inspection
by Lessor
Section
4.05. Lessee shall permit Lessor to enter the premises during business hours
for
the purpose of inspection, or for the purpose of posting notices of
non-liability for alterations, additions or repairs, or for the purpose of
placing upon the premises any "For Sale" signs, without any rebate of rent
and
without any liability to Lessee for any loss of occupation or quiet enjoyment
of
the premises; and shall permit Lessor, at any time within one hundred fifty
(150) days prior to the expiration of this lease, to place upon the premises
any
"For Lease" signs. Entries made by Lessor may not unreasonably interfere
with
the conduct of Lessee's business.
Surrender
of Premises
Section
4.06. On expiration or sooner termination of this lease, or any extensions
or
renewals of this lease, Lessee shall promptly surrender and deliver the premises
to Lessor in as good condition as they are at the date of this lease, reasonable
wear and tear excepted.
ARTICLE
5. INDEMNITY AND INSURANCE
Hold-Harmless
Clause
Section
5.01. Lessee agrees to indemnify and hold Lessor harmless from all claims,
liability, loss, damage, or expenses resulting from Lessee's occupation and
use
of the premises, specifically including, without limitation, any claim,
liability, loss, or damage arising by reason of:
(a)
The
death or injury of any person or persons, including Lessee or any person
who is
an employee or agent of Lessee, or by reason of the damage to or destruction
of
any property, including property owned by Lessee, its agent or employee,
and
caused or allegedly caused by either the condition of the premises, or some
act
or omission of Lessee or of its agent, contractor, employee, servant, or
sublessee on the premises;
(b) Any
work
performed on the premises or materials furnished to the premises at the request
of Lessee, its agent or employee;
(c) Lessee's
failure to perform any provision of this lease or to comply with any requirement
imposed on Lessor or the leased premises by any duly authorized governmental
agency or political subdivision.
Notwithstanding
the above, Lessee shall be under no duty to indemnify and hold Lessor harmless
from any liability, claims, or damages arising because of any grossly negligent,
intentional or willful acts of Lessor, its agent or employee acting in the
course and scope of their agency or employment.
Liability
Insurance
Section
5.02. Lessee shall, at its own cost and expense, maintain during the entire
term
of this lease and any renewals or extensions of the lease, a broad form
comprehensive coverage policy of public liability insurance issued by an
insurance company acceptable to Lessor and insuring Lessee and Lessor against
loss or liability caused by or connected with Lessee's occupation and use
of the
premises under this lease in amounts not less than:
(a) $1,000,000.00
combined single limit for injury to or death as a result of any one accident
or
incident.
Such
public liability insurance and property damage insurance shall insure
performance of Lessee of the indemnity provisions of Section 5.01 above.
Lessor
shall be named as an additional insured in the policy.
Fire
and
Casualty Insurance
Section
5.03. Lessee shall, at Lessee's own cost and expense, at all times during
the
term of this lease keep all furniture, fixtures and equipment located on
the
premises insured for their full insurable value by insurance companies
authorized to issue such insurance in California against loss or destruction
by
fire and the perils commonly covered under the standard extended coverage
endorsement to fire insurance policies in San Xxxx Obispo County. Any loss
payable under such insurance shall be payable to Lessee and Lessor as their
interests may appear. Any proceeds received because of a loss covered by
such
insurance shall be used and applied in the manner required by Section 6.06
of
this lease.
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Deposit
of Insurance with Lessor
Section
5.04. Lessee shall within 10 days after the execution of this lease and promptly
thereafter when any policy is replaced, rewritten, or renewed, deliver to
Lessor
a copy of each insurance policy required by this lease or a certificate executed
by the insurance company or companies or their authorized agent evidencing
such
policy or policies.
ARTICLE
6. SIGNS AND TRADE FIXTURES
Installation
and Removal of Trade Fixtures
Section
6.01. Lessee shall have the right at any time, at Lessee's sole cost and
expense, to install and affix in, to, or on the premises such items, ("trade
fixtures"), for use in Lessee's trade or business as Lessee may deem advisable.
Any trade fixtures which can be removed without structural damage to the
premises shall remain the property of the Lessee and may be removed by Lessee
at
any time prior to the termination of this lease. Any damage caused by the
removal of trade fixtures shall be repaired by Lessee at Lessee's sole cost
and
expense.
Unremoved
Trade Fixtures
Section
6.02. Any trade fixtures which are not removed from the premises by Lessee
within ten (10) days after the termination, regardless of cause, of this
Lease
shall be deemed abandoned by Lessee and shall automatically become the property
of Lessor as owner of the real property to which they are affixed, unless
Lessor
notifies Lessee, in writing, of Lessor's election to have Lessee remove such
trade fixtures and to repair any damage caused thereby. Upon election by
Lessor
to require Lessee to remove such trade fixtures, Lessee shall have fifteen
(15)
days from the date of the written notice in which to remove trade fixtures
and
repair any damage caused by such removal. If Lessee fails to remove the trade
fixtures and/or repair any such damage, Lessor may do so at Lessee's sole
cost
and expense, including any costs of storing such property.
Signs
Section
6.03. Lessee may place and maintain, on or in any exterior door, wall, or
window
of the premises, any sign, awning, canopy, marquee, or other advertising
provided such sign, awning, canopy, marquee, or other advertising is in
compliance with then existing governmental regulations affecting the premises.
Lessee may place any decoration, lettering, or advertising matter on the
glass
of any exterior window of the premises. Lessee shall maintain such sign,
awning,
canopy, marquee, or other advertising in good appearance and repair. On
termination of this lease, any of the items mentioned in this section not
removed from the premises by Lessee on termination of this lease may be removed
by Lessor.
Partial
Destruction
Section
6.04. Should premises be partially destroyed by any cause not the fault of
Lessee, this lease shall continue in full force and effect and Lessor, at
Lessor's own cost and expense, shall promptly commence the work of repairing
and
restoring the premises to their prior condition providing such work can be
accomplished under all applicable governmental laws and regulations within
90
working days at a cost not exceeding 55 percent of the total replacement
cost of
the premises.
Total
Destruction
Section
6.05. Should the premises be so far destroyed by any cause not the fault
of
Lessee that they cannot be repaired or restored to their former condition
within
90 working days or at a cost not exceeding 55 percent of the total replacement
cost of the premises, Lessor may at Lessor's option either:
(a) Continue
this lease in full force and effect by repairing and restoring, at Lessor's
own
cost and expense, the premises to their former condition; or
(b) Terminate
this lease by giving Lessee written notice of such termination.
Insurance
Proceeds
Section
6.06. Any insurance proceeds received by Lessor because of the total or partial
destruction of the premises or the building on the premises shall be the
sole
property of Lessor, free from any claims of Lessee, and may be used by Lessor
for whatever purpose Lessor may desire.
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Abatement
of Rent
Section
6.07. Should Lessor elect under Section 6.05 of this lease or be required
under
Section 6.04 of this lease to repair and restore the premises to their former
condition following partial or total destruction:
(a) Lessee
shall not be entitled to any damages for any loss or inconvenience sustained
by
Lessee by reason of the making of such repairs and restoration;
(b) Lessor
shall have full right to enter the premises and take possession of so much
of
the premises, including the whole premises, as may be reasonably necessary
to
enable Lessor promptly and efficiently to carry out the work of repair and
restoration; and
(c) The
fixed
rent payable by Lessee to Lessor pursuant to Section 2.01 shall be abated
to the
extent and for the time Lessee is prevented from using the whole of the
premises.
Total
Condemnation
Section
6.08. Should, during the term of this lease or any renewal or extension,
title
and possession of all of the premises be taken under the power of eminent
domain
by any public or quasi-public agency or entity, this lease shall terminate
as of
12:01 a.m. on the date actual physical possession of the premises is taken
by
the agency or entity exercising the power of eminent domain and both Lessor
and
Lessee shall be released from all obligations, except those specified in
Section
6.12, under this lease.
Termination
Option for Partial Condemnation
Section
6.09. Should, during the term of this lease or any renewal or extension,
title
and possession of only a portion of the premises be taken under the power
of
eminent domain by any public or quasi-public agency or entity, Lessee may,
at
Lessee's option, terminate this lease if, in Lessee’s sole opinion, the taking
makes the operation of Lessee’s business impractical or uneconomical for Lessee.
Lessee shall exercise its option by giving written notice to Lessor not later
than 30 days after actual physical possession of the portion subject to the
eminent domain power is taken by the agency or entity exercising that power.
This lease shall terminate as of 12:01 A.M. on the date the notice is deemed
given to Lessor but the minimum rent specified in Section 2.01 shall be reduced
in the manner specified in Section 6.07 from the date of taking to the date
of
termination of the lease.
Partial
Condemnation without Termination
Section
6.10. Should Lessee fail to exercise the option described in Section 6.09,
then,
in that event:
(a) This
lease shall terminate as to the portion of the premises taken by eminent
domain
as of 12:01 A.M. on the day, herein called the "date of taking," actual physical
possession of that portion of the premises is taken by the agency or entity
exercising the power of eminent domain;
(b) The
fixed
rent specified in Section 2.01 shall, after the date of taking, be reduced
by an
amount that bears the same ratio to the fixed rent specified in Section 2.01
as
the square footage of the portion of the premises taken under the power of
eminent domain bears to the total square footage of the premises;
and
(c) Lessor,
at Lessor's own cost and expense, will remodel and reconstruct the building
remaining on the portion of the premises not taken by eminent domain into
a
single efficient architectural unit as soon after the date of taking, or
before,
as can be reasonably done; provided, however, that the rent specified in
this
lease shall not be abated or reduced, except as provided in subparagraph
(b) of
this section, during such remodeling and reconstruction.
Condemnation
Award
Section
6.11. Should, during the term of this lease or any renewal or extension,
title
and possession of all or any portion of the premises be taken under the power
of
eminent domain by any public or quasi-public agency or entity, the portion
of
the compensation or damages for the taking awarded to each of the parties
to
this lease, Lessor and Lessee, shall belong to and be the sole property of
the
party to whom it is awarded. Lessee shall be entitled to that portion of
the
compensation or damages awarded for the eminent domain taking that represents
(1) reasonable value of Lessee's rights under this lease for the unexpired
term
of this lease; (2) the cost or loss sustained by Lessee because of the removal
of Lessee's trade fixtures, equipment and furnishings from the portion of
the
premises taken by eminent domain; and (3) the damages to Lessee caused by
the
reduction or elimination of Lessee’s business opportunity as a result of the
taking.
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Arbitration
of Condemnation Award
Section
6.12. Should separate awards not be made to Lessor and Lessee for the taking
by
eminent domain of all or any portion of the premises, and should Lessor and
Lessee be unable to agree on the manner the total award is to be divided
between
them pursuant to Section 6.11, the proper division of the award between Lessor
and Lessee shall be settled by arbitration under the Commercial Rules for
Arbitration prescribed by the American Arbitration Association
ARTICLE
7. DEFAULT, ASSIGNMENT, AND TERMINATION
Subleasing
or Assigning as Breach
Section
7.01. Lessee shall not encumber, assign, or otherwise transfer this lease,
any
right or interest in this lease, or any right or interest in the without
the
express written consent of Lessor. Lessee shall not sublet the premises or
any
part of the premises without the written consent of Lessor. Consent by Lessor
to
one assignment or one subletting shall not be deemed to be consent to any
subsequent assignment or subletting. Any encumbrance, assignment, transfer,
or
subletting without the written consent of Lessor, whether it be voluntary
or
involuntary, by operation of law or otherwise, is void and shall, at the
option
of Lessor, terminate this lease. The consent of Lessor to any assignment
of
Lessee's interest in this lease or the subletting by Lessee of the premises
or
parts of the premises shall not be unreasonably withheld. The transfer by
Lessee
to a corporation which is wholly owned by, or a subsidiary of Lessee or its
holding company shall not constitute a prohibited assignment within the meaning
of this section.
Abandonment
by Lessee
Section
7.02. Should Lessee breach this lease and abandon the premises prior to the
natural expiration of this lease, Lessor may:
(a) Continue
this lease in effect by not terminating Lessee's right to possession of the
premises, in which event Lessor shall be entitled to enforce all its rights
and
remedies under this lease, including the right to recover the rent specified
in
this lease as it becomes due under this lease; or
(b) Terminate
this lease and recover from Lessee:
(1) The
worth
at the time of award of the unpaid rent which had been earned at the time
of
termination of the lease;
(2) The
worth
at the time of award of the amount by which the unpaid rent which would have
been earned after termination of the lease until the time of award exceeds
the
amount of rental loss that Lessee proves could have been reasonably
avoided;
(3) The
worth
at the time of award of the amount by which the unpaid rent for the balance
of
the term of this lease after the time of award exceeds the amount of rental
loss
that Lessee proves could be reasonably avoided; and
(4) Any
other
amount necessary to compensate Lessor for all detriment proximately caused
by
Lessee's failure to perform its obligations under this lease.
Default
by Lessee
Section
7.03. Should
Lessee default in the performance of any of the covenants, conditions, or
agreements in this lease, Lessee shall have breached the lease and Lessor
may,
in addition to the remedy specified in the subparagraph (b) of Section 7.02,
reenter and regain possession of the premises in the manner provided by the
laws
of unlawful detainer in the State of California then in effect.
Insolvency
of Lessee
Section
7.04. The insolvency of Lessee as evidence by a receiver being appointed
to take
possession of all or substantially all of the property of Lessee, or the
making
of a general assignment for the benefit of creditors by Lessee or the filing
by
or against Lessee of a petition in bankruptcy, shall terminate this lease
and
entitle Lessor to reenter and regain possession of the premises.
Cumulative
Remedies
Section
7.05. The remedies given to Lessor in this Article shall not be exclusive
but
shall be cumulative and in addition to all remedies allowed by law or provided
in this lease.
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Waiver
of
Breach
Section
7.06. The waiver by Lessor of any breach by Lessee of any of the provisions
of
this lease shall not constitute a continuing waiver or a waiver of any
subsequent breach by Lessee whether of the same or another provision of this
lease.
ARTICLE
8. MISCELLANEOUS
Force
Majeure - Unavoidable Delays
Section
8.01. Should the performance of any act required by this lease to be performed
by either Lessor or Lessee be prevented or delayed by reason of an act of
God,
strike, lockout, labor troubles, inability to secure materials, restrictive
governmental laws or regulations, or any other cause except financial inability,
not the fault of the party required to perform the act, the time for performance
of the act will be extended for a period equivalent to the period of delay
and
performance of the act during the period of delay will be excused; provided,
however, that nothing contained in this section shall excuse the prompt payment
of rent or other sums by Lessee as required by this lease or the performance
of
any act rendered difficult solely because of the financial condition of the
party, Lessor or Lessee, required to perform the act.
Attorney's
Fees
Section
8.02. Should any litigation be commenced between the parties to this lease
concerning the premises, this lease, or the rights and duties of either in
relation thereto, the party prevailing in such litigation shall be entitled,
in
addition to such other relief as may be granted in the litigation, to a
reasonable sum for its attorney's fees in such litigation, which shall be
determined by the court.
Notices
Section
8.03. All notices to be given to Lessee shall be given in writing personally
or
by depositing the same in the United States mail, postage prepaid, and addressed
to Lessee at the premises, and with a copy to X.X. Xxx 0000, Xxxx Xxxxxx,
XX
00000-0000, whether or not Lessee has departed from, abandoned or vacated
the
premises. All notices to be given to Lessor shall be given in writing personally
or by depositing the same in the United State mail, postage prepaid, and
addressed to the Lessor at 0000 Xxxxxxxx Xxxx, Xxxx Xxxxxx, XX 00000 or at
such
other place or places as may be designated by Lessor.
No
Merger
Section
8.04. The voluntary or other surrender of this lease by Lessee, or a mutual
cancellation thereof, shall not work a merger, and shall, at the option of
Lessor, terminate all existing subleases or subtenancies or may, at the option
of Lessor, operate as an assignment to him of such subleases or
subtenancies.
Binding
on Heirs and Successors
Section
8.05. This lease shall be binding on and shall inure to the benefit of the
heirs, successors, and assigns of Lessor and Lessee.
Partial
Invalidity
Section
8.06. Should any provision of this lease be held by a court of competent
jurisdiction to be either invalid, void, or unenforceable, the remaining
provisions of this lease shall remain in full force and effect.
Sole
and
Only Agreement
Section
8.07. This instrument constitutes the sole and only agreement between Lessor
and
Lessee regarding the leasing of the premises to Lessee and correctly sets
forth
the obligations of Lessor and Lessee to each other. Any agreements or
representations regarding the premises or their leasing by Lessor to Lessee
not
expressly set forth in this agreement are null and void.
Waiver
Section
8.08. The waiver by Lessor of any breach of any term, covenant or condition
of
this lease shall not be deemed to be a waiver of any subsequent breach of
the
same or any other term, covenant or condition.
Subordination
Section
8.09. This
lease is subject and subordinate to all mortgages and deeds of trust which
may
now or hereafter affect the real property on which the premises are located,
and
to all renewals, modifications, replacements, and extensions thereof. Lessee
agrees to execute any instruments for the benefit of the Lessor as may be
necessary to effectuate this provision of the lease.
•
PAGE • 8
•
Time
of
Essence
Section
8.10. Time is expressly declared to be the essence of this lease.
This
Lease is executed at Paso Xxxxxx, California, by the undersigned:
| Lessee: | Buyer: | ||
| Heritage Oaks Bank | The Xxxxx Family Trust dated July 25, 1992 | ||
| |
|
|
|
| by: | /s/ Xxxxxxxx X. Xxxx | by: | /s/ Xxxxx X. Xxxxx |
|
Xxxxxxxx X. Xxxx, President |
Xxxxx X. Xxxxx, Trustee |
||
| Heritage Oaks Bank | The Xxxxx Family Trust dated July 25, 1992 | ||
| |
|
|
|
| by: | /s/ Xxxx Xxxxxxx | by: | /s/ Xxxxxxx X. Xxxxx |
|
Xxxx Xxxxxxx, XXX |
Xxxxxxx X. Xxxxx, Trustee |
||
•
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•
