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EXHIBIT 10.2
COMMERCIAL LEASE
XXXXXXX BANK OF COMMERCE, hereinafter referred to as LESSEE and GARIAN
PARTNERSHIP/FIRST AVENUE SQUARE, hereinafter referred to as LESSOR, enter into
agreement whereby Lessee hereby offers to lease from Lessor the premises
situated in the City of Chico, County of Butte, State of California, described
as Suite 4 (consisting of approximately 500 sq. ft.) First Avenue Square,
located at 000 X. Xxxxx Xxxxxx upon the following TERMS AND CONDITIONS:
1. TERM: The term hereof shall commence on August 1, 1998, and expire on
July 31, 2001 (3 year).
2-A. RENT: The monthly rent shall be as follows:
August 1, 1998 - July 31, 2001 $400.00 per mo.
Rent is payable in advance of the first day of each month to First Avenue
Square, 000 X. Xxxxx Xxxxxx, Xxxxx 0, Xxxxx, Xxxxxxxxxx 00000 or at such other
places as may be designated by Owner from time to time. Any rent which is paid
five days from the due date shall be subject to a late charge equal to 5% of the
monthly rent, plus interest. Any rent which is paid by a check which is
subsequently dishonored shall be subject to a returned check fee of $25. Late
charge and returned check fees shall be liquidated damages to cover Lessor's
damages incurred by reason of late payment or returned checks, the actual amount
of which is difficult to determine.
2B. DEPOSIT: Lessee has deposited with Lessor, first and last month's rent
in the amount of $800.00 and cleaning deposit, the sum of $400.00, paid in
advance of August 1, 1995.
3. USE: The premises are to be used for the operation of a bank branch
office for lending and no other purpose, without prior written consent of
Lessor.
4. USES PROHIBITED: Lessee shall not use any portion of the premises for
purposes other than those specified hereinabove, and no use shall be made or
permitted upon the property, nor acts done, which shall increase the existing
rate of insurance upon the property, or cause cancellation of insurance policies
covering said property. Lessee shall not conduct or permit any sale by auction
on the premises.
5. ASSIGNMENT AND SUBLETTING: Lessee shall not assign this lease or sublet
any portion of the premises without prior written consent of the Lessor, which
shall not be unreasonably withheld. Any such assignment or subletting without
written consent shall be void and, at the option of the Lessor, may terminate
this lease.
6. ORDINANCES AND STATUTES: Lessee shall comply with all statutes,
ordinances and requirements of all municipal, state and federal authorities now
in force, or which may hereafter be in force, pertaining to the premises,
occasioned by or affecting the use thereof by Lessee. The commencement or
dependence of any state or federal court abatement proceeding affecting the use
of the premises shall, at the option of the Lessor, be deemed a breach hereof.
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7. MAINTENANCE, REPAIRS, ALTERATIONS: Lessee acknowledges that the premises
are in good order and repair, unless otherwise indicated herein. Lessee shall at
his own expense, and at all times, maintain the interior of the premises in good
and safe condition including: plate glass, all electrical fixtures (outlets,
breakers, light bulbs, ballasts and switches), plumbing, (interior and exterior
of the building). Lessee shall be responsible for performing the recommended
manufacturer's maintenance of all heating and air conditioning installations and
any other system or equipment upon the premises. Lessee shall be responsible for
all interior repairs required. Lessor is responsible for the maintenance and
repair of the roof and exterior walls unless damaged by Lessee. Lessee shall
surrender the premises at termination hereof, in as good condition as received,
normal wear and tear excepted. Lessee may, at Lessee's expense, provide one (1)
exterior signage in harmony with existing signage, on the exterior of the
buildings. No other improvements or alterations of the premises shall be made
without the prior WRITTEN consent of Lessor.
Prior to the commencement of any substantial repair, improvement or alteration,
Lessee shall give Lessor at least 5 days written notice in order that Lessor may
post appropriate notices to avoid any liability for liens. Any window coverings
installed by Lessee must be of a neutral color.
Lessor is responsible for all exterior landscape maintenance and upkeep, as well
as maintenance and cleaning of parking lots.
8. ENTRY AND INSPECTION: Lessee shall permit Lessor or Lessor's agents to
enter upon the premises at reasonable times and upon reasonable notice, for the
purpose of inspecting the same, and will permit Lessor at any time within sixty
(60) days prior to the expiration of this lease, to place upon the premises any
usual "To Let" or "For Lease" signs, and permit persons desiring to lease the
same to inspect the premises thereafter.
9. INDEMNIFICATION OF LESSOR: Lessor shall not be liable for any damage or
injury to Lessee, or any other person, or to any property, occurring on the
demised premises or any part thereof, and Lessee agrees to hold harmless from
any claim for damages.
10. POSSESSION: If Lessor is unable to deliver possession of the premises at
the commencement hereof, Lessor shall not be liable for any damage caused
thereby, nor shall this lease be void or voidable, but Lessee shall not be
liable for any rent until possession is delivered. Lessee may terminate this
lease if possession is not delivered within ten days of the commencement of the
term hereof.
11. INSURANCE: Lessee, at his expense, shall maintain plate glass, public
liability and property damage insurance insuring Lessee with minimum coverage
for Bodily Injury Liability and Property Damage. Lessee shall name Lessor as his
interest may appear but not as co-insured and furnish Lessor with a Certificate
of Insurance which shall provide for a ten-day written notice to Lessor in the
event of cancellation or material change of coverage. Lessee shall be
responsible for his own personal property and fire insurance. To the maximum
extent permitted by insurance policies which may be owned by Lessor or Lessee
for the benefit of each other, waive any and all rights of subrogation which
might otherwise exist.
12. UTILITIES: Lessee agrees that he shall be responsible for the payment of
all utilities, including telephone, gas, electricity and heat. Lessor will
provide water & rubbish service for normal use, excluding packing crates and/or
boxes, which will be the Lessee's responsibility to dispose of immediately.
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13. SIGNS: Lessor reserves the exclusive right to the roof and exterior
walls of the premises. Lessee shall not construct or place any projecting sign
or awning without the prior written consent of Lessor which consent shall not be
unreasonably withheld, nor shall anything be placed in [sic] window that would
obstruct view, including signs, displays or emblems.
14. ABANDONMENT: Lessee shall not vacate or abandon the premises at any time
during the term hereof, and if Lessee shall abandon or vacate the premises or be
dispossessed by process of law, or otherwise, any personal property belonging to
Lessee left upon the premises shall be deemed to be abandoned, at the option of
Lessor.
15. CONDEMNATION: If any part of the premises shall be taken or condemned
for public use, and a part thereof remains which is susceptible of occupation
hereunder, this lease shall, as to the part taken, terminate as of the date the
condemnor acquires possession, and thereafter Lessee shall be required to pay
such proportion of the rent for the remaining term as the value of the premises
remaining bears to the total value of the premises at the date of condemnation:
provided however, that such portion is condemned that the remainder is not
susceptible for use hereunder, this lease shall terminate upon the date upon
which the condemnor acquires possession. All sums which may be payable on
account of any condemnation shall belong to the Lessor, and Lessee shall not be
entitled to any part thereof, provided however, that Lessee shall be entitled to
retain any amount awarded to him for his trade fixtures or moving expenses.
16. TRADE FIXTURES: Any and all improvements made to the premises during the
term hereof shall belong to the Lessor, except trade fixtures of the Lessee.
Lessee may, upon termination hereof, remove all his trade fixtures, but shall
repair or pay for all repairs necessary for damages to the premises occasioned
by removal.
17. DESTRUCTION OF PREMISES: In the event of partial destruction of the
premises during the term hereof, from any cause, Lessor shall forthwith repair
the same, provided that such repairs can be made within sixty (60) days under
existing governmental laws and regulation, but such partial destruction shall
not terminate this lease, except that Lessee shall be entitled to proportionate
reduction of rent while such repairs are being made, based upon the extent to
which the making of such repairs shall interfere with the business of Lessee on
the premises. If such repairs cannot be made within said sixty (60) days, this
lease may be terminated at the option of either party.
In the event that the building in which the demised premises may be situated is
destroyed to an extent of not less than one-third of the replacement costs
thereof, Lessor may elect to terminate this lease whether the demised premises
be injured or not. A total destruction of the building in which the premises may
be situated shall terminate this lease.
In the event of any dispute between Lessor and Lessee with respect to the
provisions hereof, the matter shall be settled by arbitration in such a manner
as the parties may agree upon, or if they cannot agree, in accordance with the
rules of the American Arbitration Association.
18. INSOLVENCY: In the event that a receiver shall be appointed to take over
the business of the Lessee, or in the event that the Lessee shall make, take or
suffer under any insolvency or bankruptcy act, the same shall constitute breach
of this lease by Lessee.
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19. REMEDIES OF OWNER ON DEFAULT: In the event of any breach of this lease
by Lessee, Lessor may, at his option, terminate the lease and recover from
Lessee (a) the worth at the time of award of the unpaid rent which was earned at
the time of termination; (b) the worth at the time of the award of the amount by
which the unpaid rent would have been earned after termination until the time of
the award exceeds the amount of such rental loss that the Lessee proves could
have been reasonably avoided (c) the worth at the time of award exceeds the
amount of such rent loss that Lessee proves could be reasonably avoided; and (d)
any other amount necessary to compensate Lessor for all detriment proximately
caused by Lessee's failure to perform his obligations under the lease or which
in the ordinary course of things would be likely to result therefrom.
Lessor may, in the alternative, continue this lease in effect, as long as Lessor
does not terminate Lessee's right to possession, and Lessor may enforce all his
rights and remedies under the lease, including the right to recover the rent as
it becomes due under the lease. If said breach of lease continues, Lessor may,
at any time thereafter, elect to terminate the lease. Nothing contained herein
shall be deemed to limit any other rights or remedies which Lessor may have.
20. SECURITY: The security deposit set forth above, if any, shall secure the
performance of the Lessee's obligations hereunder. Lessor may but shall not be
obligated to, apply all portions of said deposit on account of Lessee's
obligations hereunder. Any balance remaining upon termination shall be returned
to Lessee. Lessee shall not have the right to apply the Security Deposit in
payment of the last month's rent.
21. ATTORNEYS FEES: In case suit should be brought for recovery of the
premises, or for any sum due hereunder, or because of any act which may arise
out of the possession of the premises, by either party, the prevailing party
shall be entitled to all costs incurred in connection with such action,
including a reasonable attorney's fee.
22. WAIVER: No failure of Lessor to enforce any term hereof shall be deemed
to be a waiver.
23. NOTICES: Any notice which either party may or is required to give, shall
be given by mailing the same, postage prepaid, to Lessee at the premises or
Lessor at the address shown below, or at such other places as may be designated
by the parties from time to time.
24. INCREASES BY SERVICES RENDERED: In the event there is an extraordinary
increase(s) during any year of the term of this lease in building maintenance,
landscape maintenance, insurance, water and/or garbage over and above the
amount(s) in effect as of August 1, 1998 because of rate increases, Lessee shall
pay to Lessor upon presentation of paid invoice(s) an amount equal to the
percentage of square footage of space occupied by Lessee of the increase in
services upon the land and buildings in which the leased premises are situated.
Extraordinary expenses are defined as costs greater than normal inflationary
rates.
25. HOLDING OVER: Any holding over after the expiration of this lease, with
the consent of Lessor, shall be construed as a month-to-month tenancy at a
rental rate to be determined sixty (60) days prior to expiration of lease.
Lessee shall have option to renew lease within sixty (60) days written request
to continue occupancy.
26. OPTION TO RENEW: Provided that Lessee is not in default in the
performance of this lease, Lessee shall have the option to renew for three (3)
years. The option shall be exercised by written notice given to Lessor not less
than ninety (90) days prior to the expiration of the initial lease
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term, and a new lease to be signed by both parties prior to the expiration date.
The new lease rate is to be defined by market rate for the area and CPI.
27. TIME: Time [sic] of the essence of this lease.
28. HEIRS, ASSIGNS, SUCCESSORS: This lease is binding upon and insures to
the benefit of the heirs, assigns and successors in interest to the parties.
29. TAX INCREASE: In the event there is any increase during any year of the
term of this lease in the City, County or State real estate taxes over and above
the amount of such taxes assessed for the tax year during which the term of this
lease commences, whether because of increase rate of valuation, Lessee shall pay
to Lessor upon presentation of paid tax bills an amount equal to the percentage
of square footage of space occupied by Lessee of the increase in taxes upon the
land and building in which the leased premises are situated. In the event that
such taxes are assessed for a tax year extending beyond the term of the lease,
the obligation of lessee shall be proportionate to the portion of the lease term
included in such year. Tax Base Year shall be 1988-1989.
30. JANITORIAL SERVICE: Lessee will provide, at his sole cost, janitorial
services for his leased premises, including the exterior cleaning of the
windows, doorways and patio. Lessor will provide, at his sole cost, maintenance
and utilities of the building exterior, common areas, parking lot, single large
office identification sign and rubbish service excluding packing crates and/or
boxes or other large objects.
31. PARKING: Parking is available in common areas. There will be no
"back-in" parking. It is requested that Lessee and Employees not park directly
in front of other offices. Shipping and receiving is to be scheduled before or
after normal business hours so as not to block or disrupt regular traffic flow
(Customers, Clients of other Lessees). No storage of personal vehicles or
recreational vehicles is allowed on site. Company vehicles left on-site over
weekend or vacations will be kept neat and clean in appearance. Parking area is
not to be used for repair of vehicles. No motorcycles or bicycles are permitted
on the walkways. Any activity considered damaging to the asphalt by Lessee or
Sublessee will be the responsibility of Lessee.
ENTIRE AGREEMENT: The foregoing constitutes the entire agreement between the
parties and may be modified only by a writing signed by both parties. The
following Exhibits, if any, have been made a part of this lease before the
parties execution hereof:
The undersigned Lessee hereby acknowledges receipt of a copy hereof
Date: 7-16-98
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LESSEE: XXXXXXX BANK OF LESSOR:GARIAN PARTNERSHIP FIRST
COMMERCE AVENUE SQUARE
BY: /s/ Xxxxxxx X. Xxxxxx BY: /s/ Xxxxx X. Xxxxxx
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TITLE: PRESIDENT & CEO XXXXX X. XXXXXX
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BUSINESS PHONE: (000) 000-0000
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BUSINESS PHONE: AGENT:
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MAILING ADDRESS:
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