EXHIBIT 10.4
SUBLEASE
(Crescent V Fashion Center)
THIS SUBLEASE is executed this 14th day of December, 1995, to be
effective as of February 1, 1996 and is entered by and between TRUCKEE RIVER
BANK, a California Banking Corporation (hereinafter "Sublessor" or "Lessee"),
whose address is 10181 Truckee-Tahoe Xxxxxxx Xxxx, Xxxxxxx, Xxxxxxxxxx, 00000,
and PACIFIC PAWNBROKERS, whose address is 0000 Xxxxxxxxx Xxxxxx, Xxxxxx, Xxxxxx
00000.
I. RECITALS
A. On or about December 27, 1983, Sublessor, as Lessee, executed a
lease agreement and addendum thereto (hereinafter the "Lease") with The
Tahoe Crescent Partnership, Ltd., the current owner of the premises
located at the Crescent V Fashion Center, 0000 Xxxx Xxxxx Xxxxxxxxx,
Xxxxx Xxxx Xxxxx, Xxxxxxxxxx
(hereinafter "Premises").
B. Truckee River Bank, as Sublessor, desires to sublease to Sublessee
the Premises, consisting of approximately 5,146 square feet, in which
Sublessor holds a leasehold interest and Sublessee, after having
reviewed the Lease and this Sublease, desires to lease the Premises
from Sublessor.
C. This Sublease is subject to the following conditions: (i) Sublessee
obtaining a California license to engage activities as a pawnbroker and
collateralized lender; (ii) Bank regulatory approval, including
approval of the parent Company, Sierra Tahoe Bancorp, to Sublessor;
(iii) the Lessor's reasonable consent to this Sublease in written form
agreeable to Sublessor and Sublessee; and (iv) any reasonable written
consent of any lien holder or mortgagee of Lessor holding the right of
refusal with respect to the leasing of any portion of the Premises, as
may be required by existing agreements between Lessor and its
mortgagee.
II. TERMS OF SUBLEASE
Sublessor and Sublessee agree that the terms of this Sublease shall be as
follows:
1. Incorporation of Each and Every Lease Provision Into This Sublease;
Continuation of Lessor's Status. Sublessor and Sublessee hereby incorporate by
reference each and every one of the applicable terms and provisions of the
Lease, as it may have been amended from time-to-time, which is attached hereto
as Exhibit "A", into this Sublease as additional terms, conditions and covenants
of this Sublease. Where inconsistent with this Sublease, this Sublease shall
control. Although Sublessor and Sublessee agree to enter into this Sublease, and
Sublessor agrees to continue to pay monetary sums due under the lease to Lessor,
Sublessee acknowledges that any and all duties imposed upon Lessor and contained
in the Lease shall be deemed to continue to be the responsibility of the Lessor
under this Sublease and shall be performed by the Lessor under this Sublease.
Any and all duties imposed upon Lessee under the Lease shall be deemed by
execution of this Sublease the responsibility of the Sublessee under this
Sublease and shall hereafter be performed solely by the Sublessee; provided,
however, Sublessor hereby expressly retains the right to evict Sublessee or seek
other remedies against Sublessee in the event of default as set forth in the
Lease and, further, the foregoing transfer of benefits, duties and obligations
shall not be construed as a release of Lessee/Sublessor under the Lease without
the Lessor's written consent.
2. Additional Provisions And Sublease. Subject to the terms,
conditions and covenants set forth in the Lease described in Paragraph
1, the Sublessor and Sublessee agree to the following additional terms,
conditions and restrictions in entering into this Sublease and which
governs same:
A. Rental Term: Commencement; Use of Premises. The term
of this Sublease shall be from February 1, 1996, or upon receipt of the
last of the approvals set forth above, whichever first occurs;
provided, if the term has not commenced by June 1, 1996 this Sublease
may be terminated at the option of Sublessor or Sublessee upon written
notification without further recourse or liability. The Premises shall
be used exclusively as a jewelry store, pawnbrokerage and collateralized
lending facility and for no other purpose without the prior written consent of
Lessor and Sublessor.
B. Rental Term: Expiration. This Sublease shall expire on June 30, 2003 or
as may otherwise sooner occur as set forth in the Lease, whichever shall first
occur.
C. Base Rental. As monthly base rental, Sublessee shall pay Sublessor the
following base rental for each month or partial month it may occupy the Premises
which base rental is due on or before the first day of each month of the Lease
after its commencement:
First Month of Occupancy: $1,000
Second Month of Occupancy: $2,000
Third Month of Occupancy: $3,000
Fourth Month of Occupancy: $4,000
Fifth Month* and Thereafter: $4,500
*The fifth month of rental, in the sum of $4,500, shall be prepaid with the
execution of this Sublease and held in a noninterest bearing account for that
purpose; unless a default shall sooner occur, whereupon it may be applied
according to the Lease and this Sublease.
D. Cost of living Adjustment. Each year, commencing on the
anniversary of the date the rental term commenced as set forth in Paragraph
2(A), and each consecutive anniversary thereafter, the Base Rent set forth in
Paragraph 2(C) shall be adjusted. The adjustment shall be the prior years
consumer price index for all urban consumers, 1982-1984 = 100 (the "CPI")
increase for the San Francisco-Oakland statistical area (or such other index
that may replace same) or 5.00%, whichever is the greater sum, but in no event
less than zero. Said percentage CPI increase shall be multiplied against the
applicable monthly base rental that existed the month prior to the anniversary
and the monetary resultant sum added to and paid with the applicable base rent
to form an adjusted base rental which Sublessee shall thereafter pay each month.
The adjusted base rental shall be used as the base salary the following year so
as to compute the new base rent and for each year thereafter until the
expiration of the Lease.
E. Additional Rental and Common Area Charges. Sublessee
shall pay the following sums to Sublessor as additional rental, or as
Sublessor may designate, when due: (i) the prorated share of all real
estate taxes associated with the Premises; (ii) the fire and liability insurance
premium associated with the Premises, its structures and operations in a sum not
less than its replacement value or $1,000,000, whichever is greater, and in a
liability sum of $1,000,000 per accident; (iii) common area charges including
all utilities, snow removal, merchants association\advertising, telephone,
heating, cooling, water, sewer/septic and related maintenance for said systems
and the building and its common areas not provided by Lessor under the Lease and
based upon actual operating costs. All Additional Rental shall be paid to
Sublessor at Xxxx Xxxxxx Xxx 00000, Xxxxxxx, Xxxxxxxxxx, 00000, or at any other
place designated in writing by Sublessor. F. Alterations and Improvements To The
Premises; Approval of Lessor. Prior to commencing any remodeling,
reconstruction, signage changes, exterior color change or similar redesign,
Sublessee has or will timely submit to Lessor pursuant to the Lease approval for
those changes Sublessee wishes to make to the Premises. Sublessee shall not
undertake said changes until Lessor has approved those changes, if approval is
required by Lessor. G. Removal of Bank Equipment and Signage; Sublessor's
Customers. Except for the vault and vault door, Sublessor may remove all its
signage and bank equipment, including ATM, moveable fixtures and bank equipment,
from the Premises prior to the commencement of this Sublease or within thirty
(30) days thereafter; provided, however, that Sublessor agrees to leave the
counters for use during the term of this Sublease by Sublessee. For the term of
this Sublease, Sublessee shall refer all inquiries from bank customers of
Sublessor to Sublessor at such location or branch as Sublessor shall specify
from time-to-time in writing to Sublessee.
H. "As Is/Where Is" Condition of Premises; No Improvements or Repairs To Be
Made By Sublessor. Sublessee agrees that, as of the date of taking possession of
the Subleased Premises, they are/were in good condition. Sublessee has
thoroughly inspected the Premises and found them to be suitable for any special
needs or characteristics of Sublessee's business, and Sublessee accepts the
Premises AS IS except for any hidden or non-disclosed defects. Sublessee
expressly
disclaims any reliance on any representations, statements, disclosures or
nondisclosures by or on behalf of Lessor or Sublessor, their agents,
representatives, officers and employees, in entering into this Sublease.
Sublessor shall perform no improvements or repairs prior to entry by Sublessee.
Sublessee shall have the right to perform a physical inspection of the Premises,
prior to executing this Sublease. Sublessee will, at his own expense, maintain
the Subleased Premises in a state of full repair at least equal to the condition
the Premises were in at the time of commencement of this Sublease and in good
and safe condition during the entire term of the Sublease as required by the
Lease.
I. Security Deposit To Be Posted By Sublessee. Upon execution
of this Sublease, Sublessee shall promptly pay Sublessor the additional sum of
$4,500.00 in good and collected funds not as rent but as a security deposit to
be held by Sublessor in the same manner as Lessor holds Sublessor's security
deposit pursuant to Paragraph 21(w) of the Lease.
3. Miscellaneous. This Sublease supersedes all prior proposals,
agreements and discussions relating to this Sublease and may not be altered
without the prior written consent of each party hereto. This Sublease shall be
construed under the laws of the State of California with venue appropriate in
South Lake Tahoe, California or any Court having jurisdiction over such area.
The attorneys fees, cost and expense provision set forth in Paragraph 21(p) of
the Lease shall be deemed applicable to this Sublease and by and between
Sublessor and Sublessee. Any rental that is not received pursuant to Paragraph
2(c), 2(d) or 2(e) within 10 days of its due date shall incur a late charge
equal to the greater of $100 or 10% and shall thereafter accrue interest at the
West Coast Low Prime Rate as published in the Wall Street Journal for the
applicable periods. Each check dishonored from Sublessee's account shall incur a
$25.00 return charge and after two dishonored checks in any 12 month period
Sublessor may elect to receive sums due under this Sublease or the Lease in the
form of cashier, certified or wired funds only.
IN WITNESS WHEREOF, we have executed this Sublease at South Lake Tahoe,
California, on the date specified hereinabove.
SUBLESSOR:
TRUCKEE RIVER BANK, a California Banking Corporation
By: /s/ Xxxxxx Xxxxxxxx
Its: President/CEO
SUBLESSEE:
PACIFIC PAWNBROKERS, a Corporation
By: /s/ William Galine
Its:
user180\sub.cre
Exhibit "A"
(Lease Dated December 27, 1983)
