COAST COMMERCIAL BANK Joseph S Accornero
Post Office Box 1818 Executive Vice President
Santa Cruz. CA 95061-1818
(408) 458-4500
March 19, 1991
Martin Boone
Sherman & Boone Associates
1260 41st Avenue, Suite A
Capitola, California 95010
Dear Martin:
Please consider this letter your official notification of Coast Commercial
Banks's intention to exercise the first of its three five year renewal options,
for our Aptos Branch Site located at 7775 Soquel Drive, Aptos, California.
This exercise is as outlined in section 1.01 of the Lease dated July 16, 1986.
Thank you for your consideration. If you have any questions please do not
hesitate to call me.
Sincerely,
/s/
Joseph S. Accornero
Executive Vice President
Chief Operating Officer &
Cashier
ADDENDUM
This addendum is attached to and made a part of that certain lease agreement
dated July 3. 1986, wherein MARTIN N. BOONE AND ROBIN SHERMAN are referred to as
"Lessor" and COAST COMMERCIAL BANK is referred to as "CCB" and is the Lessee of
the property located at 7775 Soquel Drive, Aptos, Ca.
In that it is the intention of the Lessor to develop one or more parcels
adjacent to the subject property and tie all developed parcels together as a
center sharing parking and access and in that the proposed development offers
potential advantages to the CCB, CCB egress over the property leased by CCB
provided County parking requirements for CCB are maintained.
The attached proposed development proposals are provided to give a conceptual
understanding of the parties concerning this agreement. It is understood that
the development may be modified in scope or design due to Lessor's ability to
develop the additional property or Governmental requirements to change design
and traffic flow.
All other terms and conditions to remain the same.
Dated: 4-9,1987
LESSOR:
/s/
------------------------------------
Martin N. Boone
/s/
------------------------------------
Robin Sherman
LESSEE:
Coast Commercial Bank
By
/s/
------------------------------------
LEASE
MARTIN N. BOONE AND ROBIN SHERMAN, herein called "Lessor," hereby lease to
COAST COMMERCIAL BANK a California Banking Corporation, herein called "CCB,"
those certain premises, herein called "said premises," in the County of Santa
Cruz, State of California, described as 7775 Soquel Drive, Aptos, California.
RECITALS
Lessor owns the entire parcel of real property on which the said premises
are located, and it is currently occupied by multiple tenants including a
business known as "Art World" pursuant to a lease dated May l, 1985, between
Lessor, as Lessor therein, and Patrick Walsh which occupies the front 1450
square feet of the said premises.
CCB is desirous of having the entire real property available or the
location of a branch banking facility on the terms and conditions set forth
herein.
Lessor shall acquire the leasehold interest of PatrickWalsh pursuant to the
terms of an "Agreement to Terminate Lease" of even date herewith which is
attached hereto as Exhibit "1" and incorporated herein. Lessor's obligations
regarding use of the property thereunder shall be deemed incorporated herein and
are agreed to and accepted by CCB.
Lessor further agrees to make the remaining tenant space on the real
property available to CCB upon the expiration or earlier termination of the last
of the applicable existing leases for such space to expire or terminate. This
agreement shall, when such space is available, be applicable to such space.
Lessor and CCB agree that the principles set forth in Exhibit "A", attached
hereto and incorporated herein, shall govern the amendment of this lease when
the additional space is available.
The terms of this lease shall apply to such portions of the said premises
as are subject to use and occupancy by CCB.
ARTICLE l. TERM OF LEASE
Original Term
Section 1.01. This Lease shall be for a period of Five Years from the
execution hereof with options for renewal under the same terms and conditions
for three successive like periods. CCB shall notify Lessor not less than 90 days
prior to the expiration of a term hereunder of the exercise of its option to
extend the lease.
Hold Over
Section 1.02. Should CCB hold over and continue in possession of said
premises after expiration of the term of this lease or any extension thereof,
CCB's continued occupancy of said premises shall be considered a month-to-month
tenancy subject to all the terms and conditions of this lease.
ARTICLE 2. RENT
Minimum Rent
Section 2.01. CCB agrees to pay to Lessor, in addition to the sums
specified in Sections 2.02 and 2.03 of this lease, a fixed minimum rental for
the use and occupancy of the initial portion of said premises of $1,712.52 per
month payable on the 1st day of each month commencing upon execution hereof at
the office of Lessor at 1260 41st Avenue Capitola, California, or at such other
place or places as Lessor may from time to time designate by written notice
delivered to CCB.
The minimum rent hereunder will be adjusted pursuant to the principles set
forth in Exhibit "A" when all of said premises are available for the use and
occupancy of CCB. There are approximately 1140 Square Feet in the remaining
tenant space and the "minimum rent" for that space shall be the same as the
minimum rent, including any adjustments under Section 2.04. hereof, for the
original space at the time the remaining tenant space is added to this lease.
Premium
Section 2.02. Lessor, pursuant to the terms of Exhibit 1, is required to
expend the sum of $25,000.00 for the purpose of the granting of this lease, and
CCB, during the first term hereof, agrees to pay as additional rent the sum of
$614.62 per month, the liquidated sum represents the cost to the Lessor of
acquiring and making the leased space available to CCB and is payable without
regard to any lawful earlier termination hereof.
Project Rent
Section 2.03. When CCB has pursuant to the terms of the lease required that
the Lessor undertake the contemplated improvement project there shall be payable
to Lessor as Project Rent such monthly sum as is necessary to defer the Lessors
additional expenses in accordance with the "statement of principles".
Rent Increase (C.P.I.)
Section 2.04. At the end of the first year of this lease and each
successive year thereafter the initial minimum rental shall be adjusted by the
use of a Cost of Living Escalator as follows: the index to be used shall be the
Bureau of Labor Statistics Consumer Price Index, All Items, San Francisco, 1967
= 100, hereinafter referred to as the "CPI". Base index shall be that published
nearest to the date hereof. The rent increase hereunder shall be proportional to
the increase in the CPI as above, over the base index.
Deposit
Section 2.05. CCB shall upon execution hereof provide the Lessor with the
sum of $3,200.00 the same to represent the first month's rent hereunder and a
security deposit for the faithful performance by CCB of all obligations
hereunder.
Reappraisal of Minimum Rent
Section 2.06. Upon the expiration of TEN years after the beginning of this
lease the minimum rent hereunder will be adjusted to the then current fair
market rental value in accordance with the provisions of Article 11 hereof.
ARTICLE 3. USE OF PREMISES
Permitted Use
Section 3.01. Said premises shall, during the term of this lease and any
extensions thereof, be used for the purpose of operating and conducting thereon
and therein a branch banking operation, for uses normally incident to such
purpose, and for no other purpose without the prior consent of the Lessor which
shall not be unreasonably withheld.
Insurance Hazards
Section 3.02. CCB shall not commit or permit the commission of any acts on
said premises nor use or permit the use of said premises in any manner that will
increase the existing rates for or cause the cancellation of any fire,
liability, or other insurance policy insuring said premises or the improvements
on said premises. CCB shall, at its own cost and expense, comply with any and
all requirements of Lessor's insurance carriers necessary for the continued
maintenance at reasonable rates of fire and liability insurance policies on said
premises and the improvements on said premises.
Waste or Nuisance
Section 3.03. CCB shall not commit or permit the commission by others of
any waste on said premises; CCB shall not maintain, commit, or permit the
maintenance of commission of any nuisance as defined in Section 3479 of the
California Civil Code on said premises; and CCB shall not use or permit the use
of said premises for any unlawful purpose.
Compliance with Law
Section 3.04. CCB shall at CCB'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
CCB's use and occupancy of said premises whether such statutes, ordinances,
regulations, and requirements be now in force or hereinafter enacted.
ARTICLE 4. TAXES AND UTILITIES
Payment of Utility Charges
Section 4.01. There is only one meter for each of the utility services to
the premises. During such time as CCB occupies less than the entire building it
shall pay its prorata share of all utility charges. At the time of execution
hereof this share is agreed to be 40%. When CCB has acquired all of the improved
space available CCB shall pay, and hold Lessor and the property of Lessor free
and harmless from, all charges for the furnishing of gas, water, electricity,
telephone service, and other public utilities to said premises during the term
of this lease or any extension thereof and for the removal of garbage and
rubbish from said premises during the term of this lease or any extensions
thereof.
Personal Property Taxes
Section 4.02. CCB shall pay before they become delinquent all taxes,
assessments, or other charges levied or imposed by any governmental entity on
the furniture, trade fixtures, appliances, and other personal property placed by
CCB in, on, or about said premises including, without limiting the generality of
the other terms used in this section, any shelves, counters, vaults, vault
doors, wall safes, partitions, fixtures, machinery, office equipment, or
communication equipment brought on said premises by CCB.
Real Property Tax Increases
Section 4.03. CCB shall reimburse the Lessor, within 10 days of receiving
written notice thereof, for any increase in the real property taxes caused by
and resulting from lawful increases in the applicable Santa Cruz County tax
rates occurring during the term hereof.
ARTICLE 5. ALTERATIONS AND REPAIRS
Condition of Premises
Section 5.01. CCB accepts said premises, as well as the improvements
thereon and the facilities appurtenant thereto, in their present condition and
stipulates with Lessor that said premises as well as the improvements thereon
and the facilities appurtenant thereto are in good, clean, safe, and tenantable
condition as of the date of this lease.
Maintenance by Lessor
Section 5.02. Lessor shall, at his own cost and expense, maintain in good
condition and repair the exterior roof, exterior walls, structural supports, the
foundation of said premises, and the driveway and parking area surfaces.
Maintenance by CCB
Section 5.03. CCB shall, at its own cost and expense, maintain in good
condition and repair all of the interior of the improvements occupied by it
pursuant to this lease, and when it has possession of the entire parcel CCB
shall maintain the landscaping and cleanliness of the paved areas.
Alterations and Liens
Section 5.04. In making any improvements or alterations to the leased
premises CCB shall keep the premises free and clear from any and all liens,
claims, and demands for work performed, materials furnished, or operations
conducted on said premises at the instance or request of CCB. Furthermore, any
and all alterations, additions, improvements, and fixtures, except furniture and
trade fixtures, made or placed in or on said premises by CCB or any other person
shall upon being placed upon the premises become the property of Lessor and
remain on said premises
Inspection by Lessor
Section 5.05. CCB shall permit Lessor or Lessor's agents, representatives,
or employees to enter said premises at all reasonable times for the purpose of
inspecting said premises to determine whether CCB is complying with the terms of
this lease and for the purpose of doing other lawful acts that may be necessary
to protect Lessor's interest in said premises under this lease or to perform
Lessor's duties under this lease.
Surrender of Premises
Section 5.06. On expiration or sooner termination of this lease, or any
extensions or renewals of this lease, CCB shall promptly surrender and deliver
said premises to Lessor in as good condition as they are now at the date of this
lease, reasonable wear and tear and repairs herein required to be made by Lessor
excepted.
ARTICLE 6. INDEMNITY AND INSURANCE
Hold-Harmless Clause
Section 6.01. CCB agrees to indemnify and hold Lessor and the property of
Lessor, including said premises, free and harmless from any and all claims,
liability, loss, damage, or expenses resulting
from CCB's occupation and use of said 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 CCB or any
person who is an employee or agent of CCB, or by reason of the damage to or
destruction of any property, including property owned by CCB or any person who
is an employee or agent of CCB, and caused or allegedly caused by some act or
omission of CCB or of some agent, contractor, employee, servant, sublessee, or
concessionaire of CCB on said premises
b. Any work performed on said premises or materials furnished to said
premises at the instance or request of CCB or any agent or employee of CCB; and
c. CCB's failure to perform any provision of this lease or to comply with
any requirement of law or any requirement imposed on the leased premises by any
duly authorized governmental agency or political subdivision.
Liability Insurance
Section 6.02. CCB shall, at its own cost and expense, secure and maintain
during the entire term of this lease and any renewals or extensions of such term
a broad form comprehensive coverage policy of public liability insurance issued
by an insurance company acceptable to Lessor and insuring CCB, and naming the
Lessor as an additional insured, against loss or liability caused by or
connected with CCB's occupation and use of said premises under this lease in
amounts not less than:
a. $500,000.00 for injury to or death of one person and, subject to such
limitation for the injury or death of one person, of not less than $1,000,000.00
for injury to or death of two or more persons as a result of any one accident or
incident; and
b. $50,000.00 for damage to or destruction of any property of others.
Fire Insurance
Section 6.03. During the full term of this lease and any renewals or
extensions thereof, CCB shall maintain at CCB's own cost and expense an
insurance policy issued by a reputable company authorized to conduct insurance
business in California insuring for their full insurable value all fixtures and
equipment in or on said premises against damage or destruction by fire, theft,
or the elements.
Subrogation Waiver
Section 6.04. Lessor and CCB agree that in the event of loss due to any of
the perils for which they have agreed to provide insurance, that each party
shall look solely to its insurance for recovery. Lessor and CCB hereby grant to
each other, on behalf of any insurer providing insurance to either of them with
respect to the demised premises, a waiver of any right of subrogation which any
such insurer of one party may acquire against the other by virtue of payment of
any loss under such insurance.
ARTICLE 7. SIGNS AND TRADE FIXTURES
Installation and Removal of Trade Fixtures
Section 7.01. CCB shall have the right at any time and from time to time
during the term of this lease and any renewal or extension of such term, at
CCB's sole cost and expense, to install and affix in, to, or on said premises
such items, herein called "trade fixture," for use in CCB's trade or business as
CCB may, in its sole discretion, deem advisable. Any and all such trade fixtures
that can be removed without structural damage to said premises or any building
or improvements on said premises shall remain the property of CCB and may be
removed by CCB at any time or times prior to the expiration or sooner
termination of this lease.
Unremoved Trade Fixtures
Section 7.02. Any trade fixtures described in this Article that are not
removed from said premises by CCB within 30 days after the expiration or sooner
termination, regardless of cause, of this lease shall be deemed abandoned by CCB
and shall automatically become the property of Lessor as owner of the real
property to which they are affixed.
ARTICLE 8. DESTRUCTION AND CONDEMNATION
Destruction
Section 8.01. Should said premises, the building, or any portion thereof be
destroyed or partially destroyed by any cause not the fault of CCB, 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 said
premises to their prior condition in accordance with the improvement scheme.
Insurance Proceeds
Section 8.02. Any insurance proceeds received by Lessor because of the
total or partial-destruction of said premises or the building on said premises
shall be expended on the required repairs or prorated between the parties as
their interests appear if the lease is terminated by the parties.
Abatement of Rent
Section 8.03. All payments hereunder, including but not limited to rent,
shall be abated to the extent and for the time that CCB is prevented from using
the whole of said premises.
Condemnation
Section 8.04. Should, during the term of this lease or any renewal or
extension thereof, title and possession of all or any part of said premises be
taken under the power of eminent domain by any public or quasi-public agency or
entity, the following shall occur:
a) If the whole of the premises shall be so taken this lease shall
terminate as of 12:00 A. M. of the date actual physical possession of said
premises is taken by the agency or entity exercising the power of eminent domain
and both Lessor and CCB shall thereafter be released from all obligations,
except those specified in Section 5.06 of this lease, under this lease.
b) If a part only of the premises is so condemned or taken and the
remaining portion is not suitable for the purposes for which CCB has leased said
premises, CCB shall have the right to terminate this Lease. If by such
condemnation and taking a part only of the premises is taken, and the remaining
part thereof is suitable for the purposes for which CCB has leased said
premises, this Lease shall continue, but the rental shall be reduced in an
amount proportionate to the value of the portion taken as it relates to the
total value of the premises.
Condemnation Award
Section 8.05. Should, during the term of this lease or any renewal or
extension thereof, title and possession of all or any portion of said 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 CCB, shall belong to and be the
sole property of the party Lessor or CCB, to whom it is awarded.
ARTICLE 9. MISCELLANEOUS
Force Majeure--Unavoidable Delays
Section 9.01. Should the performance of any act required by this lease to
be performed by either Lessor or CCB 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 by CCB as required by this lease or the performance
of any act rendered difficult solely because of the financial condition of the
party, Lessor or CCB, required to perform the act.
Attorney's Fees
Section 9.02. Should any litigation be commenced between the parties to
this lease concerning said premises, this lease, or the rights and duties of
either in relation thereto, the party, Lessor or CCB, prevailing in such
litigation shall be entitled, in addition to such other relief as may be granted
in the litigation, to a reasonable sum as and for his attorney's fees in such
litigation which shall be determined by the court in such litigation or in a
separate action brought for that purpose.
Notices
Section 9.03. Except as otherwise expressly provided by law, any and all
notices or other communications required or permitted by this lease or by law to
be served on or given to either party hereto by the other party hereto shall be
in writing and shall be deemed duly served and given when personally delivered
to the party to whom they are directed, or in lieu of such personal service when
deposited in the United States mail, first-class postage prepaid, addressed to
CCB at 104 Walnut Street, Santa Cruz, California, or to Lessor at 1260 41st
Ave., Capitola, California. Either party, CCB or Lessor, may change his address
for the purpose of this section by giving written notice of such change to the
other party in the manner provided in this section.
Binding on Heirs and Successors
Section 9.04. This lease shall be binding on and shall inure to the benefit
of the heirs, executors, administrators, successors, and assigns of the parties
hereto.
Partial Invalidity
Section 9.05. 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
unimpaired by the holding.
Time of Essence
Section 9.06. Time is expressly declared to be of the essence in this
lease.
ARTICLE 10. RIGHT OF FIRST REFUSAL AND OPTION
First Refusal
Section 10.01. Should Lessor, during the lease term, any renewal term,
option term, or extension of the foregoing, elect to sell all or any portion of
the premises, CCB shall have the right of first refusal to meet any bona fide
offer of sale accepted by Lessor on the same terms and conditions of such offer,
and on failure to meet such bona fide offer within 45 days after written notice
thereof from Lessor, Lessor shall
sell the premises or portion thereof to such third person in accordance with the
terms and conditions of that contract. If for any reason CCB shall not act on
its right of first refusal and the Sale does not occur the right of first
refusal shall be reinstated.
ARTICLE 11. REAPPRAISAL
Section 11.01. Pursuant to the terms hereof the minimum rental shall be
adjusted to reflect the then current fair rental value that Lessor of the
premises in accordance with the principles upon which the lease is based. The
minimum rental shall be at such sum as may be agreed on by Lessor and CCB or, if
the parties are unable to agree, fixed by appraisal in the following manner:
(1) On or before sixty (60) days prior to commencement of the renewed
term, each of the parties to this lease, Lessor and CCB, shall appoint an
appraiser and give written notice of the name and address of such appraiser to
the other party to this lease. The two appraisers thus appointed shall, within
ten (10) days after appointment of the last of the two appraisers to be
appointed, appoint a third appraiser and serve written notice of the name and
address of such appraiser on Lessor and CCB in the manner prescribed by this
lease for service of notice on Lessor by CCB and on CCB by Lessor.
(2) All appraisers appointed under this section shall be, at the time
of their appointment, members in good standing of the American Institute of Real
Estate Appraisers.
(3) Within ten (10) days after the appointment of the third appraiser,
the three appraisers shall confer and each shall submit in writing to Lessor and
CCB his honest appraisal of the equivalent full cash rental value, as described
in this section, of said premises. The term "equivalent full cash rental value"
as used in this section means the price a willing lessee would pay to a willing
lessor for said premises for the highest and best potential use of said premises
in the original condition and without improvements for which CCB is obligated
hereunder to pay the Lessor's full cost and for which the additional "Project
Rent" is payable pursuant to section 2.03. of this lease, the appraisers shall
also disregard the effect of CCB's own leasehold improvements on rental value.
(4) The appraised value agreed on in writing by any two of the three
appointed appraisers shall be conclusive and binding on the parties to this
lease, Lessor and CCB, and shall establish the current fair rental value of said
premises for purposes of this section. Should no two of the three appraisers be
able to agree, both the highest appraisal and the lowest appraisal submitted by
any of the three appraisers shall be disregarded and the remaining appraisal
shall be binding and conclusive on the parties, Lessor and CCB, to this lease
and shall establish the current fair rental value of said premises for purposes
of this section.
(5) Should either party, Lessor or CCB, fail to appoint an appraiser as
required by this section within ten (10) days after service on him of written
demand to do so, the appraiser appointed by the other party shall act for both
Lessor and CCB. The decision in writing of such appraiser shall, in such event,
be binding on both Lessor and CCB and establish the full cash rental value of
said premises for purposes of this section.
(6) Lessor and CCB shall each pay the fee and all expenses incurred by the
appraiser appointed by each of them and one-half of all expenses and the fee
incurred by the third appraiser appointed pursuant to subparagraph (1) of this
section.
ARTICLE 12 NOTICE AND SUBORDINATION
Recorded Notice
Section 12.01. The parties hereto agree to record a notice of this lease
and any documents that may be required to release the same in the event that it
expires or is terminated by agreement without the exercise of the option.
Subordination
Section 12.02. This Lease shall be prior to any encumbrance recorded after
the date of this Lease affecting the premises. If, however, a lender requires
that this Lease be subordinate to any such encumbrance, this Lease shall be
subordinate to that encumbrance if Lessor first obtains from the lender a
written agreement that provides substantially the following:
"So long as CCB performs its obligations under this Lease, no foreclosure
of, deed given in lieu of foreclosure of, or sale under the encumbrance, and no
steps or procedures taken under this encumbrance shall affect Tenant's rights
under this Lease. The provisions of this Lease concerning the disposition of
insurance proceeds on destruction of the premises , and the provisions
concerning the disposition of any condemnation award, shall prevail over any
conflicting provisions in the encumbrance. CCB shall have the right to purchase
the encumbrance and receive an assignment of all rights appertaining thereunto
by paying to the encumbrancer the full amount of its demand prior to the opening
of a public sale in a foreclosure proceeding."
CONDITION
This lease is subject to approval by the State of California Department of
Banking.
Dated: 7-16, 1986.
LESSOR:
/s/
------------------------------------------
MARTIN N. BOONE
/s/
------------------------------------------
ROBIN SHERMAN
LESSEE: COAST COMMERCIAL BANK
By /s/
-----------------------------------------
STATEMENT OF PRINCIPLES
REGARDING
IMPROVEMENT PROJECT ON LEASED PREMISES
This statement is a part of a the terms of a lease between MARTIN N. BOONE
and ROBIN SHERMAN, as Lessors (hereinafter "Lessor") and COAST COMMERCIAL BANK,
a California Banking Corporation (hereinafter "CCB"), of even date herewith.
The parties have entered into a lease whereby CCB is initially leasing and
occupying the front 1450 square feet of the building located at 7775 Soquel
Drive, Aptos, California. It is the intent of the parties that once all of the
remaining improved space on the described real property is available and
included in the lease pursuant to the terms thereof Lessor will undertake a work
of improvement pursuant to the plans and specifications submitted by CCB through
licensed contractors approved by CCB (hereinafter "improvement project").
It is intended that the Lessor shall not suffer economic detriment as a
result of completing the improvement project as specified by CCB. In order to
insure that result, the rent under the lease shall include, in addition to the
initial monthly minimum rent, a monthly sum for "project rent."
CCB shall pay as monthly project rent such sum as shall be required to
provide the Lessor with the same "average monthly effective net return" lessor
would have received if the Lessor had not incurred the "Costs" required to
comply with its obligations under CCB's improvement project. The "costs"
referred to in this paragraph shall include all direct charges and expenses
related to the remodeling of the building and grounds as required or approved by
CCB in writing.
The "average monthly net effective return" for purposes hereof shall mean
the total annual rental income under the preexisting leases less all expenses
required to be paid by the Lessor pursuant to the terms of such existing leases
and as owner of the real property; including but not limited to expenditures for
existing mortgage obligations, real property taxes, assessments, maintenance,
utilities, and insurance; the difference to be divided by twelve to determine
the average.
In the event that CCB does not exercise the any of the options for
additional terms under the lease after the improvement project has been
completed CCB shall pay to Lessor the balance of the rent hereunder as if all
options had been exercised after deducting a discount for increases in market
valuation and a discount for cash prepayment as well as credits for increased
fair market rental value. It is the intent of the parties that Lessor shall not
be damaged nor suffer reductions in the Lessor's current effective return during
the maximum term
EXHIBIT A, PAGE 1
hereof by virtue of constructing the improvements specified by CCB.
CCB will be responsible for constructing and installing all interior
leasehold improvements and fixtures necessary and required for its use of the
premises as a banking facility to the extent that the same are not included in
the improvement project.
Dated: 7-16, 1986.
COAST COMMERCIAL BANK
/s/
- - ------------------------------------
MARTIN N. BOONE
By: /s/
------------------------------
/s/
- - ------------------------------------
ROBIN SHERMAN
EXHIBIT A, PAGE 2
AGREEMENT TO TERMINATE LEASE
MARTIN N. BOONE and ROBIN SHERMAN, as Lessor, and PATRICK WALSH, doing
business as ART WORLD, as Lessee, executed a written lease dated May 1, 1985,
for a period ending on July 15, 1988.
Lessor and Lessee hereby agree to terminate the above Lease effective July
1, 1986, upon the terms and conditions set forth herein.
Lessor will pay the Lessee the sum of $25,000.00 for the termination of the
lease pursuant to the terms hereof. The sum of $2,800.00 shall be paid upon the
execution hereof, $1,200.00 will be paid on July 15, 1986, and the balance of
$15,000.00 will be paid upon the surrender of the premises on July 31, 1986.
Lessee shall have the right to occupy the premises without rent until July 31,
1986. Any holdover occupancy shall be at $100.00 per day for the first 15 days
and shall increase to $200 at that time and further increases of $100.00
increments shall occur each 15 day period thereafter. Such holdover rent shall
belong to the new tenant described below.
The premises have been leased to Coast Commercial Bank effective July 1,
1986, and they have notice of and have consented to the terms of this agreement.
Lessor agrees that Lessee may maintain appropriate signs on the real
property containing the leased premises redirecting Lessee's customers to his
new location until October 1, 1986.
Lessor further agrees that lessor shall not permit the leased premises to
be used for the purpose of conducting a business selling art supplies or
providing art instruction for a period of five years after the execution hereof.
Lessee's obligations relative to the surrender of the premises under this
agreement modify his obligations under the above lease only in so far as the
actual surrender of possession is accelerated as a result of the early
termination of the lease.
Dated: July 3, 1986.
/s/ /s/
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MARTIN N. BOONE ROBIN SHERMAN
/s/
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PATRICK WALSH
Coast Commercial Bank hereby
acknowledges receipt of a copy hereof
/s/
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