Document:

Exhibit B

Effective 02/02

 

EXHIBIT

10.4

 

Agreement Number:

AGREEMENT

 

between

 

FISERV SOLUTIONS, INC.

255 Fiserv Drive

Brokfield, WI 53045-5815

 

and

 

Pacifica Bank

10900 NE 4th Street,

Suite 200

Bellevue, WA. 98004

 

Date: September 27, 2001

 

F

 

ãCopyright 2000 by Fiserv Solutions, Inc.

All Rights Reserved

 

This document contains proprietary and confidential information of

Fiserv Solutions, Inc. and may not be copied, published, disclosed or

distributed without the express written consent of Fiserv Solutions, Inc. The

material in this document, including terms, procedures, fees and other

conditions, comprise an agreement to consider which will remain valid for

ninety (90) days from September 27, 2001. 

 

 

AGREEMENT dated as of September 27, 2001 (“Agreement”) between FISERV

SOLUTIONS, INC., a Wisconsin corporation (“Fiserv”), and Pacifica Bank  (“Client”).

 

Fiserv and Client hereby agree as follows:

 

1.  Term.  The initial term of this Agreement shall end

2 years following the later of (i) the date Fiserv Services (as defined below)

commence; and (ii) November 1, 2001; and, unless written notification of

non-renewal is provided by either party at least 180 days prior to expiration

of the initial term, this Agreement shall automatically renew for a renewal

term(s) of 5 years.

 

2.  Services.  (a) Services Generally.  Fiserv, itself and through its affiliates,

agrees to provide Client, and Client agrees to obtain from Fiserv services

(“Services”) and products (“Products”) (collectively, “Fiserv Services”)

described in the attached Exhibits:

 

Exhibit A - Account Processing Services

Exhibit B - Item Processing Services

 

The Exhibits set forth specific terms and conditions

applicable to the Services and/or Products, and, where applicable, the Fiserv

affiliate so performing.  Client may

select additional services and products from time to time by incorporating an

appropriate Exhibit to this Agreement.

 

(b) Conversion Services.  Fiserv will convert Client’s existing

applicable data and/or information to the Fiserv Services.  Those activities designed to transfer the

processing from Client’s present servicer to the Fiserv Services are referred

to as “Conversion Services”.  Client

agrees to cooperate with Fiserv in connection with Fiserv’s provision of

Conversion Services and to provide all necessary information and assistance to

facilitate the conversion.  Client is

responsible for all out-of-pocket expenses associated with the Conversion

Services.  Fiserv will provide

Conversion Services as required in connection with Fiserv Services.

 

(c) Training Services.  Fiserv shall provide training, training

aids, user manuals, and other documentation for Client’s use as Fiserv finds

necessary to enable Client personnel to become familiar with Fiserv Services.  If requested by Client, classroom training

in the use and operation of Fiserv Services will be provided at a training

facility designated by Fiserv.  All such

training aids and manuals remain Fiserv’s property.

 

3.  Fees for

Fiserv Services.  (a) General.  Client agrees to pay Fiserv:

 

(i)  Fees for

Fiserv Services for the following month as specified in the Exhibits;

(ii) Out-of-pocket

charges for the following month payable by 

Fiserv for the account of Client; and

(iii) Taxes (as

defined below) thereon (collectively, “Estimated Fees”).

 

Fees may be increased from time to time as set forth in the

Exhibits.  Upon 30 days notification to

and acceptance by Client, Fiserv may increase its fees in excess of amounts

listed in the Exhibits in the event that Fiserv implements major system enhancements

to comply with changes in law, government regulation, or industry practices.

 

(b) Additional Charges.  Fees for out-of-pocket expenses, such as

telephone, microfiche, courier, and other charges incurred by Fiserv for goods

or services obtained by Fiserv on Client’s behalf shall be billed to Client at

cost plus the applicable Fiserv administrative fee of 15%.  Such out-of-pocket expenses may be changed

from time to time upon notification of a fee change from a vendor/provider.

 

(c) Taxes. 

Fiserv shall add to each invoice any sales, use, excise, value added,

and other taxes and duties however designated that are levied by any taxing

authority relating to the Fiserv Services (“Taxes”).  In no event shall “Taxes” include taxes based upon the net income

of Fiserv.

 

(e) Payment Terms.  Fees are due and payable monthly upon receipt of invoice.  Client shall pay Fiserv through the

Automated Clearing House. In the event any amounts due remain unpaid beyond the

30th day after payment is due, Client shall pay a late charge of 1.5% per

month.  Client agrees that it shall

neither make nor assert any right of deduction or set-off from Estimated Fees

on invoices submitted by Fiserv for Fiserv Services.

 

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4.  Access

to Fiserv Services.  (a) Procedures.  Client agrees to comply with applicable

regulatory requirements and procedures for use of Services established by

Fiserv.

 

(b) Changes. 

Fiserv continually reviews and modifies Fiserv systems used in the

delivery of Services (the “Fiserv System”) to improve service and comply with

government regulations, if any, applicable to the data and information utilized

in providing Services.  Fiserv reserves

the right to make changes in Services, including but not limited to operating

procedures, type of equipment or software resident at, and the location of

Fiserv’s service center(s).  Fiserv will

notify Client of any material change that affects Client’s normal operating

procedures, reporting, or service costs prior to implementation of such change.

 

(c) Communications Lines.  Fiserv shall order the installation of

appropriate communication lines and equipment to facilitate Client’s access to

Services.  Client understands and agrees

to pay charges relating to the installation and use of such lines and equipment

as set forth in the Exhibits.

 

(d) Terminals and Related Equipment.  Client shall obtain necessary and sufficient

terminals and other equipment, approved by Fiserv and compatible with the

Fiserv System, to transmit and receive data and information between Client’s

location(s), Fiserv’s service center(s), and/or other necessary

location(s).  Fiserv and Client may

mutually agree to change the type(s) of terminal and equipment used by Client.

 

5.  Client Obligations.  (a) Input.  Client shall be solely responsible for the input, transmission,

or delivery to and from Fiserv of all information and data required by Fiserv

to perform Services unless Client has retained Fiserv to handle such responsibilities,

as specifically set forth in the Exhibits. 

The information and data shall be provided in a format and manner

approved by Fiserv.  Client will provide

at its own expense or procure from Fiserv all equipment, computer software,

communication lines, and interface devices required to access the Fiserv

System.  If Client has elected to

provide such items itself, Fiserv shall provide Client with a list of

compatible equipment and software; Client agrees to pay Fiserv’s standard fee

for recertification of the Fiserv System resulting therefrom.

 

(b) Client Personnel.  Client shall designate appropriate Client personnel for training

in the use of the Fiserv System, shall supply Fiserv with reasonable access to

Client’s site during normal business hours for Conversion Services and shall cooperate

with Fiserv personnel in their performance of Services, including Conversion

Services.

 

(c) Use of Fiserv System.  Client shall (i) comply with any operating

instructions on the use of the Fiserv System provided by Fiserv; (ii) review

all reports furnished by Fiserv for accuracy; and (iii) work with Fiserv to

reconcile any out of balance conditions. 

Client shall determine and be responsible for the authenticity and

accuracy of all information and data submitted to Fiserv.

 

(d) Client’s Systems.  Client shall be responsible for ensuring that its systems are

Year 2000 compliant and capable of passing and/or accepting date formats from

and/or to the Fiserv System.

 

6.  Ownership

and Confidentiality.  (a) Definition.

 

(i) Client Information.  “Client Information” means:  (A) confidential plans, customer lists,

information, and other proprietary material of Client that is marked with a

restrictive legend, or if not so marked with such legend or is disclosed orally,

is identified as confidential at the time of disclosure (and written

confirmation thereof is promptly provided to Fiserv); and (B) any information

and data concerning the business and financial records of Client’s customers

prepared by or for Fiserv, or used in any way by Fiserv in connection with the

provision of Fiserv Services (whether or not any such information is marked

with a restrictive legend).

 

(ii) Fiserv

Information. “Fiserv Information” means: 

(A) confidential plans, information, research, development, trade

secrets, business affairs (including that of any Fiserv client, supplier, or

affiliate), and other proprietary material of Fiserv that is marked with a

restrictive legend, or if not so marked with such legend or is disclosed

orally, is identified as confidential at the time of disclosure (and written

confirmation thereof is promptly provided to Client); and (B) Fiserv’s

proprietary computer programs, including custom software modifications,

software documentation and training aids, and all data, code, techniques,

algorithms, methods, logic, architecture, and designs embodied or incorporated

therein (whether or not any such information is marked with a restrictive

legend).

 

(iii) Information.  “Information” means Client Information and

Fiserv Information.  No obligation of

confidentiality applies to any Information that the receiving party

(“Recipient”) (A) already possesses without obligation of confidentiality; (B)

develops independently; or (C) rightfully receives without obligation of

confidentiality from a third party.  No

obligation of confidentiality applies to any Information that is, or becomes,

publicly available without breach of this Agreement.

 

(b) Obligations.  Recipient agrees to hold as confidential all Information it

receives from the disclosing party (“Discloser”).  All Information shall remain the property of Discloser or its

suppliers and licensors.  Information

will be returned to Discloser at the termination or expiration of this Agreement.  Fiserv specifically agrees that it will not

use any non-public personal information about Client’s customers in any manner

prohibited by Title V of the Gramm-Leach-Bliley Act. Recipient

 

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will use the same care and discretion to avoid disclosure of

information as it uses with its own similar information that it does not wish

disclosed, but in no event less that a reasonable standard of care.  Recipient may only use information in

accordance with the purpose of this Agreement. Recipient may  disclose Information to (i) employees and

employees affiliates who have a need to know, and (ii) any other party with

Discloser’s written consent. Before disclosure to any of the above parties,

Recipient will have a written agreement with such party sufficient to require

that party to treat Information in accordance with this Agreement. Recipient

may disclose Information to the extent required by law. However, Recipient

agrees to give Discloser prompt notice so that it may seek a protective order.

The provisions of this sub-section survive any termination or expiration of the

Agreement.

 

(c) Residuals. 

Nothing contained in this Agreement shall restrict Recipient from the

use of any ideas, concepts, know-how, or techniques contained in Information

that are related to Recipient’s business activities (“Residuals”), provided

that in so doing, Recipient does not breach its obligations under this

Section.  However, this does not give

Recipient the right to disclose the Residuals except as set forth elsewhere in

this Agreement.

 

(d) Fiserv System.  The Fiserv System contains information and computer software that

are proprietary and confidential information of Fiserv, its suppliers, and

licensors.  Client agrees not to attempt

to circumvent the devices employed by Fiserv to prevent unauthorized access to

the Fiserv System, including, but not limited to, alterations, decompiling,

disassembling, modifications, and reverse engineering thereof.

 

(e) Information Security. Fiserv shall

implement and maintain appropriate measure designed to meet the objectives of

the guidelines establishing standards for safeguarding non-public Client

customer information as adopted by any federal regulatory agencies having

jurisdiction over Client’s affairs.

 

(d) Confidentiality of this Agreement.  Fiserv and Client agree to keep confidential

the prices, terms and conditions of this Agreement, without disclosure to third

parties.

 

7.  Regulatory

Agencies, Regulations and Legal Requirements.  (a) Client Files. 

Records maintained and produced for Client (“Client Files”) may be subject

to examination by such Federal, State, or other governmental regulatory

agencies as may have jurisdiction over Client’s business to the same extent as

such records would be subject if maintained by Client on its own premises.  Client agrees that Fiserv is authorized to

give all reports, summaries, or information contained in or derived from the

data or information in Fiserv’s possession relating to Client when formally

requested to do so by an authorized regulatory or government agency.

 

(b) Compliance with Regulatory Requirements.  Client agrees to comply with applicable

regulatory and legal requirements, including without limitation:

 

(i) Submitting a

copy of this Agreement to the appropriate regulatory agencies prior to the date

Services commence;

(ii) Providing

adequate notice to the appropriate regulatory agencies of the termination of

this Agreement or any material changes in Services;

(iii) Retaining

records of its accounts as required by regulatory authorities;

(iv) obtaining and

maintaining, at its own expense, any Fidelity Bond required by any regulatory

or governmental agency; and

(v) Maintaining,

at its own expense, such casualty and business interruption insurance coverage

for loss of records from fire, disaster, or other causes, and taking such

precautions regarding the same, as may be required by regulatory authorities.

 

8.  Warranties.  (a) Fiserv Warranties.  Fiserv represents and warrants that:

 

(i)(A) Services

will conform to the specifications set forth in the Exhibits; (B) Fiserv will

perform Client’s work accurately provided that Client supplies accurate data

and information, and follows the procedures described in all Fiserv

documentation, notices, and advices; (C) Fiserv personnel will exercise due

care in provision of Services; (D) the Fiserv System will comply in all

material respects with all applicable Federal and State regulations governing

Services. In the event of an error or other default caused by Fiserv personnel,

systems, or equipment, Fiserv shall correct the data or information and/or

reprocess the affected item or report at no additional cost to Client.  Client agrees to supply Fiserv with a

written request for correction of the error within 7 days after Client’s

receipt of the work containing the error. 

Work reprocessed due to errors in data supplied by Client, on Client’s

behalf by a third party, or by Client’s failure to follow procedures set forth

by Fiserv shall be billed to Client at Fiserv’s then current time and material

rates; and (ii) it owns or has a license to furnish all equipment or software

comprising the Fiserv System.  Fiserv

shall indemnify Client and hold it harmless against any claim or action that

alleges that the Fiserv System use infringes a United States patent, copyright,

or other proprietary right of a third party. 

Client agrees to notify Fiserv promptly of any such claim and grants

Fiserv the sole right to control the defense and disposition of all such

claims.  Client shall provide Fiserv

with reasonable cooperation and assistance in the defense of any such claim.

 

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THE WARRANTIES STATED ABOVE ARE LIMITED WARRANTIES AND ARE THE ONLY

WARRANTIES MADE BY FISERV.  FISERV DOES

NOT MAKE, AND CLIENT HEREBY EXPRESSLY WAIVES, ALL OTHER WARRANTIES, INCLUDING

WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.                (b) Client Warranties.  Client represents and warrants that: (A) no

contractual obligations exist that would prevent Client from entering into this

Agreement; (B) it has complied with all applicable regulatory requirements; and

(C) Client has requisite authority to execute, deliver, and perform this

Agreement.  Client shall indemnify and

hold harmless Fiserv, its officers, directors, employees, and affiliates

against any claims or actions arising out of (X) the use by Client of the

Fiserv System in a manner other than that provided in this Agreement; and (Y)

any and all claims by third parties through Client arising out of the

performance and non-performance of Fiserv Services by Fiserv, provided

that the indemnity listed in clause (Y) hereof shall not preclude Client’s

recovery of direct damages pursuant to the terms and subject to the limitations

of this Agreement.

 

9.  Limitation

of Liability.  (a) General.  IN NO EVENT SHALL FISERV BE LIABLE FOR LOSS

OF GOODWILL, OR FOR SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES

ARISING FROM CLIENT’S USE OF FISERV SERVICES, OR FISERV’S SUPPLY OF EQUIPMENT

OR SOFTWARE, REGARDLESS OF WHETHER SUCH CLAIM ARISES IN TORT OR IN CONTRACT.  CLIENT MAY NOT ASSERT ANY CLAIM AGAINST

FISERV MORE THAN 2 YEARS AFTER SUCH CLAIM ACCRUED.  FISERV’S AGGREGATE LIABILITY FOR ANY AND ALL CAUSES OF ACTION

RELATING TO SERVICES SHALL BE LIMITED TO THE TOTAL FEES PAID BY CLIENT TO

FISERV FOR SERVICES RESULTING IN SUCH LIABILITY IN THE 6 MONTH PERIOD PRECEDING

THE DATE THE CLAIM ACCRUED.  FISERV’S

AGGREGATE LIABILITY FOR A DEFAULT RELATING TO EQUIPMENT OR SOFTWARE SHALL BE

LIMITED TO THE AMOUNT PAID BY CLIENT FOR THE EQUIPMENT OR SOFTWARE.

 

(b) Lost Records.  If Client’s records or other data submitted for processing are

lost or damaged as a result of any failure by Fiserv, its employees, or agents

to exercise reasonable care to prevent such loss or damage, Fiserv’s liability

on account of such loss or damages shall not exceed the reasonable cost of

reproducing such records or data from exact duplicates thereof in Client’s

possession.

 

10.  Disaster

Recovery.  (a) General.  Fiserv maintains a disaster recovery plan

(“Disaster Recovery Plan”) for each Service. 

A “Disaster” shall mean any unplanned interruption of the operations of

or inaccessibility to Fiserv’s service center in which Fiserv, using reasonable

judgment, requires relocation of processing to a recovery location.  Fiserv shall notify Client as soon as possible

after Fiserv deems a service outage to be a Disaster.  Fiserv shall move the processing of Client’s standard services to

a recovery location as expeditiously as possible and shall coordinate the

cut-over to back-up telecommunication facilities with the appropriate

carriers.  Client shall maintain

adequate records of all transactions during the period of service interruption

and shall have personnel available to assist Fiserv in implementing the

switchover to the recovery location. 

During a Disaster, optional or on-request services shall be provided by

Fiserv only to the extent adequate capacity exists at the recovery location and

only after stabilizing the provision of base services.

 

(b) Communications.  Fiserv shall work with Client to establish a plan for alternative

communications in the event of a Disaster.

 

(c) Disaster Recovery Test.  Fiserv shall test the Disaster Recovery Plan

periodically.  Client agrees to

participate in and assist Fiserv with such test, if requested by Fiserv.  Upon Client request, test results will be

made available to Client’s management, regulators, auditors, and insurance

underwriters.

 

(d) Client Plans.  Fiserv agrees to release information necessary to allow Client’s

development of a disaster recovery plan that operates in concert with the

Disaster Recovery Plan.

 

(e) No Warranty.  Client understands and agrees that the Disaster Recovery Plan is

designed to minimize, but not eliminate, risks associated with a Disaster

affecting Fiserv’s service center(s). 

Fiserv does not warrant that Fiserv Services will be uninterrupted or

error free in the event of a Disaster; no performance standards shall be

applicable for the duration of a Disaster. 

Client maintains responsibility for adopting a disaster recovery plan

relating to disasters affecting Client’s facilities and for securing business

interruption insurance or other insurance necessary for Client’s protection.

 

11.  Termination.  (a) Material Breach.  Except as provided elsewhere in this Section

11, either party may terminate this Agreement in the event of a material breach

by the other party not cured within 90 days following written notice stating,

with particularity and in reasonable detail, the nature of the claimed breach.

For purposes of this Section 11(a), any material failure by Fiserv to meet any

performance standards described in the Agreement or any Exhibit hereto will

constitute a material breach.

 

(b) Failure to Pay.  In the event any invoice remains unpaid by Client 30 days after

due, or Client deconverts any data or information from the Fiserv System

without prior written consent of Fiserv, Fiserv, at its sole option, may

terminate this Agreement and/or Client’s access to and use of Fiserv

Services.  Any invoice submitted by

Fiserv shall be deemed correct unless Client provides written notice to Fiserv

within 30 days of the invoice date specifying the nature of the disagreement.

 

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(c) Remedies. 

Remedies contained in this Section 11 are cumulative and are in addition

to the other rights and remedies available to Fiserv under this Agreement, by

law or otherwise.

 

(d) Defaults. 

If Client:

 

(i) Defaults in

the payment of any sum of money due;

(ii) Breaches this

Agreement in any material respect or otherwise defaults in any material respect

in the performance of any of its obligations; or

(iii) Commits an

act of bankruptcy or becomes the subject of any proceeding under the Bankruptcy

Code or becomes insolvent or if any substantial part of Client’s property

becomes subject to any levy, seizure, assignment, application, or sale for or

by any creditor or governmental agency;

 

Then, in any such event,

Fiserv may, upon written notice, terminate this Agreement and be entitled to

recover from Client as liquidated damages an amount equal to the present value

of all payments remaining to be made hereunder for the remainder of the initial

term or any renewal term of this Agreement. 

For purposes of the preceding sentence, present value shall be computed

using the “prime” rate (as published in The  Wall Street Journal) in effect at the date

of termination and “all payments remaining to be made” shall be calculated

based on the average bills for the 3 months immediately preceding the date of

termination.  Client agrees to reimburse

Fiserv for any expenses Fiserv may incur, including reasonable attorneys’ fees,

in taking any of the foregoing actions.

 

(e) Convenience.  Client may terminate this Agreement during any term by paying a

termination fee based on the remaining unused term of this Agreement, the

amount to be determined by multiplying Client’s average monthly invoices for

the twelve-month period immediately preceding the effective date of

termination. For each Fiserv Service received by Client during the term (or if

no monthly invoice has been received, the sum of the estimated monthly billing

for each Fiserv Service to be received hereunder) by 80% times the remaining

months of the term, plus any unamortized conversion fees or third party costs

existing on Fiserv’s books on the date of termination.  Client understands and agrees that Fiserv

losses incurred as a result of early termination of the Agreement would be

difficult or impossible to calculate as of the effective date of termination

since they will vary based on, among other things, the number of clients using

the Fiserv System on the date the Agreement terminates.  Accordingly, the amount set forth in the

first sentence of this subsection represents Client’s agreement to pay and Fiserv’s

agreement to accept as liquidated damages (and not as a penalty) such amount

for any such Client termination.

 

(f) Return of Data Files.  Upon expiration or termination of this

Agreement, Fiserv shall furnish to Client such copies of Client Files as Client

may request in Fiserv’s standard machine readable format along with such

information and assistance as is reasonable and customary to enable Client to

deconvert from the Fiserv System, provided, however, that except

for a termination by Client under Section 11(a), Client agrees to pay Fiserv

its then standard rates for the services necessary to return such Client Files.

Client consents and agrees and authorizes Fiserv to retain Client Files until

(i) Fiserv is paid in full for (A) all Services provided through the date such

Client Files are returned to Client; and (B) any and all other amounts that are

due or will become due under this Agreement; (ii) Fiserv is paid its then

standard rates for the services necessary to return such Client Files; (iii) if

this Agreement is being terminated, Fiserv is paid any applicable termination

fee pursuant to subsection (d) or (e) above; and (iv) Client has returned to

Fiserv all Fiserv Information. Unless directed by Client in writing to the

contrary, Fiserv shall be permitted to destroy Client Files any time after 30

days from the final use of Client Files for Processing.

 

(g) Miscellaneous.  Client understands and agrees that Client is responsible for the

deinstallation and return shipping of any Fiserv-owned equipment located on

Client’s premises.

 

12.  Arbitration.  (a) General.  Except with respect to disputes arising from

a misappropriation or misuse of either party’s proprietary rights, any dispute

or controversy arising out of this Agreement, or its interpretation, shall be

submitted to and resolved exclusively by arbitration under the rules then

prevailing of the American Arbitration Association, upon written notice of

demand for arbitration by the party seeking arbitration, setting forth the

specifics of the matter in controversy or the claim being made.  The arbitration shall be heard before an

arbitrator mutually agreeable to the parties; provided, that if the parties

cannot agree on the choice of arbitrator within 10 days after the first party

seeking arbitration has given written notice, then the arbitration shall be

heard by three arbitrators, one chosen by each party, and the third chosen by

those two arbitrators.  The arbitrators

will be selected from a panel of persons having experience with and knowledge

of information technology and at least one of the arbitrators selected will be

an attorney.  A hearing on the merits of

all claims for which arbitration is sought by either party shall be commenced

not later than 60 days from the date demand for arbitration is made by the

first party seeking arbitration.  The

arbitrator(s) must render a decision within 10 days after the conclusion of

such hearing.  Any award in such

arbitration shall be final and binding upon the parties and the judgment

thereon may be entered in any court of competent jurisdiction.

 

(b) Applicable Law.  The arbitration shall be governed by the United States

Arbitration Act, 9 U.S.C. 1-16.  The

arbitrators shall apply the substantive law of the State of Washington, without

reference to provisions relating to conflict of laws.  The arbitrators shall not have the power to alter, modify, amend,

add to, or subtract from any term or provision of this Agreement, nor to rule

upon or grant any extension, renewal, or continuance of

 

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this Agreement.  The arbitrators

shall have the authority to grant any legal remedy available had the parties

submitted the dispute to a judicial proceeding.

 

(c) Situs. 

If arbitration is required to resolve any disputes between the parties,

the proceedings to resolve the first such dispute shall be held in King County,

Washington, the proceedings to resolve the second such dispute shall be held in

Milwaukee, Wisconsin, and the proceedings to resolve any subsequent disputes

shall alternate between King County, Washington  and Milwaukee, Wisconsin.

 

13.  Insurance.  Fiserv carries and will maintain in full

force and effect the following types of insurance policies each will be

maintained with insurers rated A+ or better by A.M. Best Company.

(i) Comprehensive

General Liability in an amount not less than $1 million per occurrence for

claims arising out of bodily injury and property damage;

(ii) Commercial

Crime covering employee dishonesty in an amount not less than $5 million;

(iii) All-risk

property coverage including Extra Expense and Business Income coverage; and

(iv) Workers

Compensation as mandated or allowed by the laws of the state in which Services

are being performed, including $500,000 coverage for Employer’s Liability.

 

14.  Audit.  Fiserv employs an internal auditor

responsible for ensuring the integrity of its processing environments and

internal controls.  In addition, Fiserv

provides for periodic independent audits of its operations.  Fiserv shall provide Client with a copy of

the audit of the Fiserv service center providing Services within a reasonable

time after its completion and shall charge each client a fee based on the pro

rata cost of such audit.  Fiserv shall

also provide a copy of such audit to the appropriate regulatory agencies, if

any, having jurisdiction over Fiserv’s provision of Services.

 

15.  General.  (a) Binding Agreement.  This Agreement is binding upon the parties

and their respective successors and permitted assigns.  Neither this Agreement nor any interest may

be sold, assigned, transferred, pledged, or otherwise disposed of by either

party, whether pursuant to change of control or otherwise, without the other

party’s prior written consent. 

Notwithstanding the foregoing, Fiserv may assign this Agreement to an

affiliate upon notice to Client. Client agrees that Fiserv may subcontract any

Services to be performed hereunder. Any such subcontractors shall be required

to comply with all applicable terms and conditions.

 

(b) Entire Agreement.  This Agreement, including its Exhibits, which are expressly

incorporated herein by reference, constitutes the complete and exclusive

statement of the agreement between the parties as to the subject matter hereof

and supersedes all previous agreements with respect thereto.  Modifications of this Agreement must be in

writing and signed by duly authorized representatives of the parties.  Each party hereby acknowledges that it has

not entered into this Agreement in reliance upon any representation made by the

other party not embodied herein.  In the

event any of the provisions of any Exhibit are in conflict with any of the

provisions of this Agreement, the terms and provisions of this Agreement shall

control unless the Exhibit in question expressly provides that its terms and

provisions shall control.

 

(c) Severability.  If any provision of this Agreement is held to be unenforceable or

invalid, the other provisions shall continue in full force and effect.

 

(d) Governing Law.  This Agreement will be governed by the substantive laws of the

State of Washington,without reference to provisions relating to conflict of

laws.  The United Nations Convention of

Contracts for the International Sale of Goods shall not apply to this

Agreement.

 

(e) Force Majeure.  Neither party shall be responsible for delays or failures in

performance resulting from an act of God, war, civil disturbance, court order,

labor dispute, third party nonperformance (except for non performance of any

subcontractors contemplated by Section 15 (a) above0 or other cause beyond such

party’s reasonable control, including failures or fluctuations in electrical

power, heat, light, air conditioning or telecommunications equipment and such

nonperformance shall not be a default or a ground for termination.

 

(f) Notices. 

Any written notice required or permitted to be given hereunder shall be

given by: (i) Registered or Certified Mail, Return Receipt Requested, postage

prepaid; (ii) confirmed facsimile; or (iii) nationally recognized courier

service to the other party at the addresses listed on the cover page or to such

other address or person as a party may designate in writing.  All such notices shall be effective upon

receipt.

 

(g) No Waiver. 

The failure of either party to insist on strict performance of any of

the provisions hereunder shall not be construed as the waiver of any subsequent

default of a similar nature.

 

(h) Financial Statements.  Fiserv shall provide Client and the

appropriate regulatory agencies so requiring a copy of Fiserv, Inc.’s audited

consolidated financial statements.

 

(i) Prevailing Party.  The prevailing party in any arbitration, suit, or action brought

against the other party to enforce the terms of this Agreement or any rights or

obligations hereunder, shall be entitled to receive its reasonable costs,

expenses, and attorneys’ fees of bringing such arbitration, suit, or action.

 

(j) Survival. 

All rights and obligations of the parties under this Agreement that, by

their nature, do not terminate with the 

 

7

 

expiration or termination of this Agreement shall survive the

expiration or termination of this Agreement.

 

(k) Exclusivity.  Client agrees that Fiserv shall be the sole and exclusive

provider of the services that are the subject matter of this Agreement.  For purposes of the foregoing, the term

“Client” shall include Client affiliates. 

During the term of this Agreement, Client agrees not to enter into an

agreement with any other entity to provide these services (or similar services)

without Fiserv’s prior written consent.  If Client acquires another entity, the exclusivity provided to

Fiserv hereunder shall take effect with respect to such acquired entity as soon

as practicable after termination of such acquired entity’s previously existing

arrangement for these services.  If

Client is acquired by another entity, the exclusivity provided to Fiserv

hereunder shall apply with respect to the level or volume of these services

provided immediately prior to the signing of the definitive acquisition

agreement relating to such acquisition and shall continue with respect to the

level or volume of these services until any termination or expiration of this

Agreement.

 

(l) Recruitment of Employees. Each party agrees

not to hire the other’s employees during the term of this Agreement and for a

period of six months after any termination or expiration thereof, except with

the other party’s prior written consent, provided however, this shall not

prohibit a party from hiring an employee of the other party who responds to a

solicitation of general publication.

 

IN WITNESS WHEREOF, the parties have caused this

Agreement to be executed by their duly authorized representatives as of the

date indicated below.

	

   

  	

   

  
	

  For Client:

  	

  For Fiserv:

  
	

   

  	

   

  
	

  Pacifica Bank

  	

  Fiserv Solutions, Inc.

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ John D. Huddleston

  	

   

  	

  By: 

  	

  /s/ Sam Langham

  	

   

  
	

  Name:

  	

  John

  D. Huddleston

  	

  Name:

  	

  Sam

  Langham

  
	

  Title:

  	

  Executive

  Vice President and C.F.O

  	

  Title: 

  	

  Executive Vice

  President, Business Unit Manager

  
	

   

  	

   

  	

  Los Angeles Data Center

  
	

   

  	

   

  
	

  Date:

  	

  10/12/01

  	

   

  	

  Date:

  	

  11/12/01

  	

   

  
											

 

8

 

Effective 02/02

 

Exhibit A

Account Processing

Services

 

Client agrees with Fiserv as follows:

 

1.   Services.  Fiserv will provide Client the Facilities

Management Services (“Account Processing Services”) specified in Exhibit A–1.

 

2.   Fees.  Client shall

pay Fiserv fees and other charges for Account Processing Services specified in

Exhibit A–1. The fees listed in Exhibit A-2 are valid for the account

processing services Client contracts for as of the date of the Agreement. If

Client seeks additional services from Fiserv during the term of the Agreement,

Fiserv’s fees there for will be quoted to Client upon request. Fiserv agrees to

give at least 30 days notice to Client of any changes in the rules and

procedures established for processing, unless such changes are causes by

changes made by the Federal Reserve System or otherwise beyond the control of

Fiserv, not permitting Fiserv to give such advance notice. Fiserv reserves the

right to make such changes to the Exhibits without notice to the extent

necessary to cover any increases in Federal Reserve System costs and charges or

in other costs and changes beyond Fiserv’s control, including changes required

by applicable law or regulatory activity. The fees listed in Exhibit A–2 may be

changed annually effective October and each succeeding October 2002 upon 30

days advance notice to Client. Each change shall be limited to the change in

the U.S. Department of Labor, Consumer Price Index (“CPI”) for All Urban

Households in Snohomish County for the most recent 12-month period for which

such information is available or three percent (3%), whichever is greater.

Fiserv will deliver to Client the notification of the fee change.

 

3.   Responsibility

for Accounts.  Client shall be

responsible for balancing its accounts each business day and notifying Fiserv

immediately of any errors or discrepancies. 

Provided that Client immediately notifies Fiserv of any discrepancy in

Client’s accounts, Fiserv shall, at its expense, promptly recompute accounts

affected by discrepancies solely caused by the Fiserv Systems or provide for

another mutually agreeable resolution. 

Fiserv will use its commercially reasonable efforts to correct errors

attributable to Client or Client’s other third party servicers.  Reconstruction of error conditions

attributable to Client or to third parties acting on Client’s behalf will be

done at prevailing rates as set forth in Exhibit A–2.

 

4.   Annual Histories. 

Fiserv currently maintains annual histories, where applicable, for its

clients.  These histories can be used to

reconstruct Client Files in an emergency. 

However, in order to permit prompt and accurate reconstruction of

accounts, Client agrees to retain at all times and make available to Fiserv

upon request the most recent data printout(s) received from Fiserv, together

with copies or other accurate and retrievable records of all transactions to be

reflected on the next consecutive printout(s).

 

5.   Hours of Operation. Account Processing Services will be

available for use by Client during standard Fiserv business hours, excluding

holidays, as specified in Exhibit A–3. Account Processing Services may be

available additional hours during which time Client may use Services at its

option and subject to additional charges.

 

6.   Performance Standards. 

The Fiserv performance standards for the Account Processing Services

(“Performance Standards”) are set forth in Exhibit A – 4.  In no event shall Fiserv be liable to Client

for damages of any nature arising solely from failure by Fiserv to meet

Performance Standards.

 

7.   Protection

of Data.  (a) For the purpose of

compliance with applicable government regulations, Fiserv has an operations

backup center, for which Client agrees to pay the charges indicated in Exhibit

A–2.  Fiserv maintains copies of  transaction files off premises in secured

vaults.

 

(b) Fiserv provides “on-line” security via utilization

of leased lines with poll/select protocol.

 

(c) Upon Client providing access to Client Files

through Client’s customers’ personal computers or voice response system, Client

agrees to indemnify and hold harmless Fiserv, its officers, directors,

employees, and affiliates against any claims or actions arising out of such

access to Client Files or any Fiserv files (including the files of other Fiserv

clients) or the Fiserv System or other Fiserv systems.

 

9

 

8.  Processing

Priority.  Fiserv does not subscribe

to any processing priority; all users receive equal processing consideration.

 

9.  Forms

and Supplies.  Client assumes and

will pay the charges for all customized forms, supplies, and delivery

charges.  Custom forms ordered through

Fiserv will be subject to a 15% administrative fee for warehousing and

inventory control.  Forms ordered by Client

and warehoused at Fiserv will be subject to the administrative fee set forth in

Exhibit A–2.

 

10. Regulatory

Supervision.

By entering into this Agreement, Fiserv agrees that the Office of

Thrift Supervision, FDIC, or other regulatory agencies having authority over

Client’s operations shall have the authority and responsibility provided to the

regulatory agencies pursuant to the Bank Service Corporation Act, 12 U.S.C.

1867(C) relating to services performed by contract or otherwise.

 

IN WITNESS WHEREOF, the parties hereto have caused

this Exhibit A to the Agreement to be executed by their duly authorized

representatives as of the date indicated below.

 

	

  For Client:

  	

  For Fiserv:

  
	

  Pacifica Bank

  	

  Fiserv Solutions, Inc.

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ John D.

  Huddleston

  	

   

  	

  By: 

  	

  /s/ Sam Langham

  	

   

  
	

  Name:

  	

  John

  D. Huddleston

  	

  Name:

  	

  Sam Langham

  
	

  Title:

  	

  Executive

  Vice President and C.F.O

  	

  Title: 

  	

  Executive Vice

  President, Business Unit Manager

  
	

   

  	

   

  	

  Los Angeles Data Center

  
	

   

  	

   

  
	

  Date:

  	

  10/12/01

  	

   

  	

  Date:

  	

  11/12/01

  	

   

  
												

 

10

 

Effective 02/02

 

Exhibit A - 1

Account Processing

Services

 

Fiserv Responsibilities

 

Fiserv will

provide Client with the following ITI Software Account Processing Services for

the fees and charges out lined in Exhibit A:

 

Base Services:

•    Account Analysis

•    ACH Processing

•    ATM Card Transaction Processing

•    Auto Transfers

•    Certificates of Deposits

•    Customer Information File (CIF)

•    Demand Deposit Accounting

•    Financial Management System (G/L)

•    Host Disaster Recovery Back Up

•    Loan Investor Reporting

•    Lines of Credit

•    Loan Accounting Processing

•    Mortgage Loans

•    EIM NSF/OD Return Processing

•    Query Report Writer - SMART

•    Retirement Processing

•    Release Installation

•    Savings Account Processing

•    Service Charge Modeling

•    Sweep Accounting

•    Tape - Fiserv Forms & Graphics or

Deluxe  Generation for Coupon Books

(Weekly)

•    Tape (TRW) Format Generation for Credit

Bureau (Monthly)

 

Interfaces:

•    ATM + Balance File

•    Deposit Platform

•    Host Teller

•    Fiserv Item Processing

•    Loan Platform

•    Sendero Asset/Liability

•    Sendero MCIF

 

Network

Support Services:

•    Data Comm line between Fiserv’s account

processing center and Client’s primary banking locations.

 

Training:

•    Refresher training available (additional

cost)

 

Help

Desk Services:

•    Staffing and maintenance to undertake

investigations, inquiries, and problem resolution associated with the

Application Processing Services software.

•    Applications support personnel will be

available to assist and support Client’s support services staff.

•    Account Management Staff to call on Client

 

11

 

Client Responsibilities

 

Client will be responsible for the following

activities:

 

Personnel:

•    Project Manager

•    Staff necessary to assist in Conversion

Services

•    Courier services for delivery of data

 

Third

Party Software:

•    Evaluation, selection, licensing, and

procurement of maintenance for third party application software as mutually

agreed by Fiserv and Client.

•    Obtain any necessary consents to utilize

third party software licensed to Client as of the Effective Date, which

consents shall be provided to Fiserv (the obtaining of such consents shall be a

condition precedent to performance by Fiserv of its obligations).

•    Advising Fiserv of any connections, upgrades,

or enhancements that become available from third party vendors so that they may

be installed on a mutually agreeable schedule and in accordance with the third

party vendor’s recommended time schedule.

•    Providing Fiserv with a complete copy of all

license and maintenance agreements related to third party software.

 

3. Maintaining and Installing Ancillary Software: Software to be

licensed by Pacifica Bank and a quote will be provided by the Van Nuys Data

Center for the time and material needed to install the software on the bank’s

mainframe.

 

12

 

Effective 02/02

 

Exhibit A - 2

Account Processing

Services Fees

 

Fiserv will provide

Client the following Facitilites Management Services at the fees and prices indicated.

 

	

  5. Conversion, Other and One-Time Costs

  	

   

  	

  Facility 

  Management

  
	

  Monthly

  Minimum Processing Fee

  	

   

  	

  $

  	

  7,500

  
	

   

  	

   

  	

   

  
	

  Implementation

  Assistance/Set-up Fee Imaging

  	

   

  	

  $

  	

  5,000

  
	

  Conversion

  Assistance/Set-Up Fee Facility Management

  	

   

  	

   

  
	

  Conversion

  Assistance/Set-Up Fee Image Processing

  	

   

  	

   

  
	

  (End

  user training at the Fiserv Los Anges Data Center or on-site per day

  	

   

  	

  $

  	

  1,000

  
	

  A

  schedule of training classes may be obtained from a Client Account Manager or

  Help Desk Representative. Classes at the Fiserv ITI facility in Lincoln, NE

  are Available at additional cost.

  	

   

  	

   

  

 

•      Conversion of Facility Management and Item

Processing waived

 

	

  Dep

  Con Software Installation and Configuration

  	

   

  	

  $

  	

  3,400

  
	

  Does not include hardware (PC and printer)

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Image Library Software (Per Copy)

  	

   

  	

  $

  	

  500

  
	

  Annual License Fee per copy

  	

   

  	

  $

  	

  75

  
	

  (one copy is

  needed per viewing station)

  	

   

  	

   

  	

   

  

 

13

 

Effective 02/02

 

Exhibit A - 2

Account Processing

Services Fees

 

FACITILITES

MANAGEMENT SERVICES

 

Tapes-Backup Media

– Compatibility with hot-site and other main frames.

 

DLT required format for Van Nuys Center

DLT Tape Driver $5,000 (approximate cost after market

items)

Tapes and Supplies: Cost

 

Auto Library tape functions – products such as BL–Lm; BL–LABEL will be

used for tape management BL–Lm Cost

BL–LABEL – Cost

 

Arcus off site

storage – Included with FM Service

Disaster Recovery

Bank will be covered under the Van Nuys contract with Sungard.  Bank will also comply with all policies and

procedures that relate to disaster recovery services in the Van Nuys Data

Center

 

Monthly DR Services: $4.25 per Unisys RPM

Travel Expense: paid by bank for declared disaster or

testing

 

Servicing of Banks:

Not permitted under this agreement

 

Maintaining and installing Ancillary

Software: Software to be licensed by the bank at will be

provided by the time and Van Nuys for material needed to install the software

banks mainframe.

 

Depcon - Must be

licensed on host and on remote print PC

 

	

  PDF

  	

   

  	

  Require by Van Nuys for print delivery

  
	

  PIM Drivers

  	

   

  	

  Required by Van Nuys for files to come in standard

  
	

  Pullfile Drivers

  	

   

  	

  Required by Van Nuys

  

 

All WO’s and Worksheets – Are proprietary of Fiserv–Van Nuys

 

Computer Operations Special Requests

– examples Data Base reload $125.00/hour or request for quote

 

Transmission Software –

none on F/M box

The banks do not buy modems or software to handle incoming or outgoing

transmission

 

Install Upgrades Unisys Software

Should have hourly fee for upgrade to box, Install Upgrades ITI Software

$174/hour or request quote

 

Client Service phone support –

included with service Network Support – included with service

 

Network Support –

included with service

 

One Time Set Up Fee –

Van Nuys will set up mainframe to match all policies and procedures with in the

data center for standardization and control

 

Note: All

mainframes services by Van Nuys will be kept at the same software release

levels as the mainframes owned and operated by the data center.

 

14

 

Effective 02/02

 

Exhibit A - 3

Hours of Operation

 

The Fiserv Account Processing Center will be in

operation for on-line Account Processing Services in accordance with the

following:

 

	

  Monday

  	

   

  	

  7:00 A.M. - 7:00 P.M.

  
	

  Tuesday

  	

   

  	

  7:00 A.M. - 7:00 P.M.

  
	

  Wednesday

  	

   

  	

  7:00 A.M. - 7:00 P.M.

  
	

  Thursday

  	

   

  	

  7:00 A.M. - 7:00 P.M.

  
	

  Friday

  	

   

  	

  7:00 A.M. - 7:00 P.M.

  
	

  Saturday

  	

   

  	

  8:00 A.M. - 2:00 P.M.

  
	

  Sunday

  	

   

  	

  Not on-line

  

 

All times stated are in accordance with prevailing

local times for the Fiserv Los Angeles Data Center. The Fiserv Los Angeles Data

Center observes national holidays, and will be closed for on-line operations.

 

15

 

Effective 02/02

 

Exhibit A - 4

Performance Standards

 

1.  On-Line Availability -

Fiserv’s standard of performance shall be on-line availability of the Fiserv

System (exclusive of telecommunications and terminals) 98% of the time that it

is scheduled to be so available over a 3 month period (“Measurement

Period”).  Actual on-line performance

will be calculated monthly by comparing the number of hours that the Fiserv

System was scheduled to be operational on an on-line basis exclusive of

preventive maintenance and scheduled maintenance with the number of hours, or a

portion thereof, it was actually operational on an on-line basis.  Preventive maintenance will not be scheduled

during normal online processing hours. 

Only is necessary preventive maintenance will be performed on only

mission critical equipment during on-line processing hours.  Downtime caused by reasons beyond Fiserv’s

except for down time caused in whole or in part by acts, omissions,

nonperformance or system failures of or by any Fiserv agents or subcontractors

will not be considered in the statistics.

 

2.  Report Availability -

Fiserv’s standard of performance for report availability shall be that, over a

Measurement Period, 97% of all Critical Daily Information shall be available

for remote printing or dispatch to the courier on time without significant

errors.  Critical Daily Information

shall mean priority group reports that Fiserv and Client have mutually agreed

in writing are necessary to properly account for the previous day’s activity

and properly notify Client of overdraft, NSF, or return items.  The agreed upon Critical Daily Information

shall be listed on an exhibit attached to the final conversion plan.  On time delivery for Critical Daily

Information shall be 6:30 a.m. if delivered to Client’s remote print facility

and 8:30 a.m. if delivered to Client by courier.  A significant error is one that impacts Client’s ability to

properly account for the previous days activity and/or properly account for

overdraft, NSF, or Return items.  Actual

performance will be calculated monthly by comparing the total number of reports

scheduled to be available from Fiserv to the number of reports that were

available on time and without error.

 

3.  Response Time - Fiserv’s

response time performance standard for 98% of transaction shall be  2 seconds for a teller transaction or 3.5

seconds for a terminal transaction, Premier II workstations 5.5 seconds on

average as determined from measurements taken over a Measurement Period.  A transaction shall mean a basic deposit,

withdrawal, or monetary transaction. 

The measurement shall begin when the host computer receives the data

transmitted from the on-line device and shall end when the host computer

returns the data out to the on-line network for delivery to the on-line

device.  Fiserv will log and retain a

record of response time maintaining appropriate analytical reports.  Fiserv will work with Client and third party

vendors to ensure commercially reasonable response time.

 

4. Client Inquiries - All Client inquiries will be acknowledged

by Fiserv within 2 hour of request. 

Resolution of the inquiry will be completed by Fiserv within 24 hours of

the inquiry unless a mutually agreeable time is accepted by Fiserv and

Client.  Fiserv strives to meet the

following goals:

a. Respond to 70%

of calls immediately

b. Resolve 85% of

calls on day of receipt

 

16

 

Effective 02/02

 

Exhibit B

Item Processing

Services

 

Client agrees with Fiserv as follows:

 

1.  Services.  Fiserv will provide Client the Item

Processing Services (“Item Processing Services”) specified in Exhibit B – 1.

 

2.  Due

Diligence.  All necessary

information concerning Client’s requirements for Item Processing Services shall

be set forth in a business assumptions list (the “IP Business Assumptions

List”), which Client shall complete prior to Fiserv rendering Item Processing

Services hereunder.  Client acknowledges

that Fiserv has relied on the information contained in the IP Business

Assumptions List in determining pricing and performance levels for the Item

Processing Services.  In the event of

material change(s) in the actual volumes, types of items, and delivery times

for work received from Client, as compared to the IP Business Assumptions List,

Fiserv shall have the right to adjust its fees and/or performance standards

accordingly upon 30-day’ notice to Client. 

Any increase in fees resulting from this due diligence process shall not

be subject to the CPI limitations as set forth in Paragraph 3 below.

 

3.  Fees.  Client shall pay Fiserv the fees and other

charges for the Item Processing Services specified in Exhibit B – 1.  Fees listed in Exhibit B – 2 are valid for

item processing services and locations that Client contracts for as of the date

of the Agreement.  If Client seeks

additional services and/or use additional locations from Fiserv during the term

of the Agreement, Fiserv fees and services available, therefor will be quoted

to Client upon request.  Fiserv agrees

to give at least 30 days’ notice to Client of any changes in the rules and

procedures established for processing items, unless such changes are caused by

changes made by the Federal Reserve System or otherwise beyond the control of

Fiserv, not permitting Fiserv to give such advance notice.  Fiserv reserves the right to make such

changes to the Exhibits without notice as may be necessary to cover any

increases in Federal Reserve System costs and charges or in other costs and

charges beyond Fiserv’s control, including changes required by applicable law

or regulatory activity.  The fees listed

in Exhibit B - 2 may be changed annually effective October and each succeeding

October 2002 upon 30 days advance notice to Client.  Each change shall be limited to the change in the U.S. Department

of Labor, Consumer Price Index for All Urban Households (“CPI”) for the most

recent 12-month period for which such information is available or three percent

(3%) whichpreceding each January 1, or three percent (3%), whichever is

greater. Fiserv will deliver to Client the notification of the fee change.

 

4.  Performance

Standards.  Fiserv will perform the

Item Processing Services in accordance with the performance standards specified

in Exhibit B – 3 (“Item Processing Services Performance Standards”), subject to

Client meeting its performance obligations as set forth in Exhibits B – 1 and B

– 3.  Fiserv shall not be liable for any

damages or losses to Client for errors occurring within the limits of the

Exhibit B – 3 performance standards.

 

5.  No

Fiduciary Relationship.  Fiserv

shall perform such Item Processing Services for which Fiserv shall subscribe as

agent of Client, and Fiserv shall not have by reason of this Agreement a

fiduciary relationship with respect to Client.

 

6.  Lost,

Destroyed, and Misplaced Items. 

Fiserv assumes no liability for any item lost, destroyed, or misplaced

while in transit before the item physically arrives at the premises of Fiserv

and is received by Fiserv.  In the event

any items are lost, destroyed, or misplaced, and such event is not due to gross

negligence or intentional misconduct by Fiserv, Client shall be solely responsible

for the costs and expenses incurred by Fiserv in reconstructing any such items

and for any damages or other losses that may be incurred by Fiserv due to the

collection of such items.  In the event

Fiserv loses, destroys, or misplaces deposited items as a result of gross

negligence or intentional misconduct after acceptance of said deposit, Fiserv

shall be liable only for reasonable reconstruction costs of the deposit.  Reasonable reconstruction costs shall be

only those costs that arise from reconstruction of a microfilmed deposit.  Fiserv shall not be liable for

reconstruction costs associated with a deposit for which Client cannot provide

a microfilmed record of such item(s) contained in the deposit.  In no event shall Fiserv be liable for the face

value of any lost or missing item(s).

 

7.  Governmental

Regulation.  This Exhibit shall be

governed by and is subject to:  the

applicable laws, regulations, rules, terms and conditions, as presently in

effect or hereafter amended or adopted, of the United States of America,

Federal Reserve Board, Federal Reserve Banks, Federal Housing Finance Board,

and any other governmental agency or instrumentality having jurisdiction over

the subject matter of this Exhibit. 

Client agrees to abide by such requirements and to execute and deliver

such agreements, documents, or other forms as may be necessary to comply with

the provisions hereof, including, without limitation, agreements to establish

Fiserv as Client’s Agent for purposes of delivery of items processed hereunder

from or to the Federal Reserve Banks. 

Any such agreements shall be made a part of this Agreement and are

incorporated herein.  A change or

termination of such laws, regulations, rules, terms, conditions, and agreements

shall constitute,

 

17

 

respectively, a change or termination as to this Exhibit.  Client data and records shall be subject to

regulation and examination by government supervisory agencies to the same

extent as if such information were on Client’s premises.

 

8.  Client

Responsibilities.  Client shall

submit all items to Fiserv and otherwise comply with all Client obligations in

accordance with the requirements set forth in Exhibit B – 1.  Client shall maintain adequate supporting

materials (i.e. exact copies of items, records, and other data supplied to

Fiserv) in connection with the provision of Item Processing Services.  Client shall provide written notice of

confirmation and/or verification of any instructions given by Client, its agents,

employees, officers, or directors to Fiserv in connection with Fiserv’s

provision of Item Processing Services. 

Client shall be responsible for balancing its accounts each business day

and notifying Fiserv, within 7 business days, of any errors or discrepancies.

In the event Fiserv discovers an error or defect (it being understood that

Fiserv shall be under no duty to discover any such error or defect), Fiserv is

authorized, in its sole discretion, to correct any such error or defect and to

make any adjustments in order to correct such error or defect.

 

9. Definition of Item.  An item is defined as all checks and other

documents presented to Fiserv for processing, transactional entries generated

by Client, such as teller cash tickets, general ledger entries, loan entries

and all control documents such as batch tickets.

 

IN WITNESS

WHEREOF, the parties hereto have caused this Exhibit B to the Agreement to be

executed by their duly authorized representatives as of the date indicated

below.

 

	

   

  	

   

  	 

	

  For Client:

  	

  For Fiserv:

  	 

	

   

  	

   

  	 

	

  Pacifica Bank

  	

  Fiserv Solutions, Inc.

  	 

	

   

  	

   

  	 

	

   

  	

   

  	 

	

  By:

  	

  /s/ John D.

  Huddleston

  	

   

  	

  By: 

  	

  /s/ Teri Carstensen

  	

   

  
	

  Name:

  	

  John

  D. Huddleston

  	

  Name:

  	

  Teri

  Carstensen

  	 

	

  Title:

  	

  Executive

  Vice President and C.F.O

  	

  Title: 

  	

  Senior Vice President

  	 

	

   

  	

   

  	

  Item Processing

  District Manager

  	 

	

   

  	

   

  	 

	

  Date:

  	

  10/12/2001

  	

   

  	

  Date:

  	

  11/16/2001

  	

   

  	 

													

 

18

 

Effective 02/02

 

Exhibit B-1

Item Processing

Description of Services

 

1.     Proof:  On each business day (excluding Saturdays,

Sundays, and holidays), Client will deliver to Fiserv Processing Center, checks

and other items deposited to accounts with Client. Client will provide extra

deliveries in support of proof operations for peak day processing.  Peak day processing is defined as any day

when Client’s volume is expected to exceed twenty percent of daily average

volume of the previous months volume divided by the number of business days in

the previous month.

 

a.     Client

will contract with and pay for a courier, to pick up and deliver all work

between Client and Fiserv.  Both parties

will mutually agree upon the times of pick-up and delivery.  If Fiserv has not received the items from

Client locations by the agreed upon delivery times, Fiserv may, in its sole

discretion and without liability, delay the processing of such items until the

next business day.  Fiserv will contact

Client’s after-hours contact and apprise said contact of the situation.  Client agrees to provide an after-hours

contact and update that contact should there be any change in Client personnel.

 

b.     Client

agrees to MICR encode documents to meet Fiserv requirements (ABA and Account

Numbers and Tran-codes)

 

c.     Client is

responsible for microfilming all items submitted to Fiserv.

 

d.     Client

agrees that all transactional entries, involving tellers’ cash tickets, general

ledger entries, or loan entries shall be in balance, and that Fiserv may return

to Client, unprocessed, any transactional entries that are not in balance.

 

e.     Client

agrees to segregate all over-the-counter items into batches not to exceed three

inches (3”) in depth and to identify each such batch with an appropriate batch

header, which batch header shall meet written requirements provided by Fiserv.

Client further agrees to segregate all items by type (i.e., single deposit

items will be batched separately from multiple deposit items), and to provide a

total for each single batch.

 

f.      Client

agrees to include a batch manifest for each bag of work submitted to Fiserv.

 

g.     From the

ITEMS submitted to Fiserv, Fiserv shall retrieve such “on-us” information as

may be necessary for the proper accounting of the items and shall transmit this

information, through telephone lines or by such other means as Fiserv may, from

time to time, deem appropriate to Client’s data processor for data processing.

 

h.     Client

authorizes Fiserv to create ledger holdover entries, deposit corrections, or

such other entries to balance transactions, except for those transactions

outlined in subsection 1.d. above, as may be necessary to the efficient

processing of the items.

 

i.      After

Fiserv has completed the process of retrieving and transmitting to Client’s

data processor the information necessary for data processing, all

over-the-counter items not drawn against Client shall be forwarded for

collection to such correspondent banks as Client may designate from time to

time in writing to Fiserv.

 

j.      All items

drawn against Client and those items internally generated shall be returned to

Client or held by Fiserv in accordance with Client’s written instructions.

 

Encoding:  Fiserv will encode the dollar amount on all

items needing encoding and presented to Fiserv as part of the Proof function

described above.  Fiserv may encode

additional fields, such as account numbers, deposit ticket totals, or other items

as specified by Client.  Any such encoding

will be according to terms agreed to by Fiserv.  In no event will Fiserv be liable for losses to Client due to

encoding errors if Client has not satisfied all of its obligations set forth in

Section 1 above.  Should Fiserv’s

encoding services fail to meet the performance standard 

 

19

 

for proof of deposit set forth in Exhibit B-3, and

Client incurs a potential loss due to an encoding error, Client shall use its

best efforts to collect the amount in question from its customer (including

without limitation, commencing legal action against the customer, obtaining a

judgment, and attempting collection efforts based on said judgment) prior to

submitting a claim for damages to Fiserv.

 

Exception Item Processing:

Fiserv will either reject or pay items listed on the appropriate report, in

accordance with written instructions, by Client’s authorized officer or

employee. The name of Client’s officer or employee giving such instruction

shall be noted on the item or on such other record as Fiserv may establish,

together with the nature of the instruction. If Client has not instructed

Fiserv regarding the disposition of any exception item drawn against Client by

the agreed upon time each day, then Fiserv shall return it through the

presentment chain to the depository bank or institution. Instructions to Fiserv

on disposition of items that are received after the agreed upon deadline or are

changed can result in a late charge. Should Fiserv’s exception item processing fail

to meet the performance standard for exception item processing set forth in

Exhibit B-3, and Client incurs a potential loss due to an error, Client shall

use its best efforts to collect the amount in question from its customer

(including without limitation, commencing legal action against the customer,

obtaining a judgment, and attempting collection efforts based on said judgment)

prior to submitting a claim for damages to Fiserv.

 

4.      Statement Rendition: All checks,

drafts, and other orders for the payment of money drawn against accounts at

Client which are to be stored by Fiserv, will be retained by Fiserv until the

end of each Client’s checking account cycle. The items will be sorted, filed

with the monthly statement, and mailed to the depositor.  Client agrees to have statements printed

according to predefined cycles and print classes.  Statement enclosure counts will be accurately and clearly

reported in the top fold of the statement. 

If required, Client agrees to expedite the return of any paid exception

items to Fiserv in order to facilitate timely statement processing. Fiserv will

apply proper postage, which will be pre- paid monthly (or as agreed upon by

Client and Fiserv) on an estimated basis by Client.

 

5.      Inclearings:  Client authorizes Fiserv to receive its

inclearing items daily from the Federal Reserve Bank. Fiserv will balance the

inclearing items to their cash letters, capture the items on magnetic media,

microfilm or image scan and transmit the account information to Client’s data

processor. Fiserv will also pull out for further handling the appropriate items

for exception handling or scrutinizing, and deliver the items to bulk file

storage or to Client for further processing.

 

6.      Courier Service: The parties hereto

acknowledge that it will be necessary to make arrangements for the transport of

items, records, and other data from Client to Fiserv and from the Federal

Reserve or Correspondent bank to Fiserv. After Fiserv has provided the Item

Processing Services, selected items, records, and data must be transported from

Fiserv to Client and the Federal Reserve. The parties further acknowledge that

the cost of such transportation shall be the sole responsibility of Client.

 

a.     Client has

the right to make provision for its own courier service to provide the needed

transportation as set forth in subsection 1.a. above.  Should Client not make provision for such courier service, or

should Client request that Fiserv make arrangements for such courier service,

then Fiserv, for the benefit of Client, shall make arrangements for such a

courier service. Client must notify Fiserv to provide such courier service no

less than thirty (30) days prior to the date that Fiserv is to begin providing

Item Processing Services.

b.     Client

shall pay Fiserv for any and all charges, expenses, or costs incurred by Fiserv

in contracting for said courier service, as set forth in Exhibit B-2.

c.     It is

understood and agreed that Fiserv shall not have, or assume, any liability or

responsibility for such items, records, or data until they have reached Fiserv

premises and shall have no further responsibility or liability for them after

they leave Fiserv premises.

d.     The

courier service shall at all times be deemed the independent contractor of

Client, and shall not, at any time or under any circumstances, be deemed the

agent or employee of Fiserv, regardless of whether said courier service, at any

pertinent time herein, is affiliated with or employed by Fiserv.

e.     Fiserv

will monitor and track deliveries for Client. 

Should a delivery be missing, Fiserv will notify Client through

appropriate channels.  Should there be

any dispute as to the proper delivery of any records, Fiserv’s records of

delivery will be accepted as the undisputed record of delivery.

 

20

 

7.      Conversion Services:  Fiserv will provide conversion services

based on the information provided by Client during the due diligence

process.  Following Client’s initial

conversion to Fiserv Services, any additional requests will be submitted to

Fiserv at least 90 days prior to the required implementation date.  An estimate for the additional conversion

services will be provided.  The

implementation time for the conversion will be delayed if Client requires more

than three days to approve or decline the conversion estimate. Client also

acknowledges that Fiserv must approve any changes to the MICR line and/or

Account Number structure for Client prior to proceeding with a conversion.  Fiserv will make every reasonable attempt to

convert new MICR line and/or Account Number structures.  Client agrees to eliminate any non-standard

MICR line and/or Account number structure as identified during the due

diligence process from its daily capture service within 120 days after the

initial conversion date.  Client

acknowledges that Fiserv may elect to charge a fee such as the Special

Statements Fee listed in Exhibit B-2, for all non-standard items processed in

the service.  Client acknowledges that

Fiserv may not be able to achieve the stated service level agreements on

accounts, transactions, or services involving non-standard MICR lines and/or

Account Number structures. In the event that the Account Number appearing on

the statement does not equal the Account Number on the MICR line, Fiserv will

not be responsible for any service level agreements relating to statement

preparation and rendition.

 

Initial Client conversion

is based on the results obtained during the due diligence process.  This work would include an inclearings, POD

and bulk file sort pattern.  In

addition, it would include a single extraction program to support the

transmission of a daily inclearings and POD file to a host site for

processing.  Sort specifications will be

developed in support of statement rendition services.  Standard reporting will be provided to Client to include a daily

transaction report sorted in transaction and account order, recaps of

transmissions and cash letters, and a daily cash report if required.

 

8.      Research Services: Fiserv will provide

research and photocopy services upon request by Client.  Upon receipt from Client of a request for

subpoena work or other significant or 

voluminous research work, Fiserv will attempt to provide Client with an

estimate of the time required and corresponding cost to complete the request

prior to commencing the research services.

 

9.      Data Transmission: Client and Fiserv

acknowledge and agree that Client has separately contracted with Client’s data

processor to provide data processing services for Client and that Fiserv shall

have no responsibility for the timeliness or quality of the service provided by

Client’s data processor. Client’s data processor shall deliver directly to

Client all reports generated from the data transmitted by Fiserv. Fiserv shall

have no responsibility for the timeliness of such delivery or for the adequacy

or accuracy of the reports supplied by Client’s data processor, except for

errors caused by Fiserv failure to transmit information.

 

10.    Image Services:   Fiserv will provide CD-ROM containing retrievable images of

processed checks to Clients courier as agreed. 

Weekly and Daily CD’s are dispatched the next business day. EOM CD’s are

dispatched within four business days. Fiserv will provide Client with remote

research availability  via a work

station from 8:00 AM Eastern Time to 12:00 AM Eastern Time Monday through

Friday, excluding holidays, and on weekends and holidays from 8:00 AM Eastern

Time to Noon Eastern Time.

a.     Fiserv

will image capture Inclearings and POD through item capture.

b.     Re-enter

transit all rejects.

c.     Fiserv

will retain items sent to Fiserv for processing for up to 60 days at the fee

stated in Schedule B-2 and will maintain the ability to furnish such items to a

customer upon request during such period.

d.     After 60

days, Fiserv will destroy items sent to it for processing.

e.     Fiserv

will create and render the image statements for the designated accounts.  Images of the front and if specified by

Client for an account, the back, or each ITEM shall be included with each statement.

f.      Archive

services are maintained up to 90 days o RAID with response time of less that 10

seconds. From day 91 through seven years a tape silo is used for storage.

Response time for a single query from day 91 though the 24th month is 2 minutes

or less. Next day response time is provided for items in the month 25 through

month 84 range. 

 

21

 

Effective 02/02

 

Exhibit B-2

 

Item Processing Services

Fees

 

Fiserv will provide Client with the Item Processing Services for the

following fees and prices indicated:

 

Fiserv Administrative Fee (excluding postage): 15%

 

I.  Item Handling - Sorter

 

	

  Service

  	

   

  	

  Volume/Range

  	

   

  	

  Unit Fee

  	

   

  	

  Description

  / Information

  
	

  In-Clearing Capture

  	

   

  	

  Per item

  	

   

  	

  $0.014/item

  	

   

  	

  Per item. 

  High-speed capture of MICR data, balancing to Inclearing Totals and

  extracts.  A sequence number is spray

  endorsed on the items.  Inclearings,

  Same Day Capture.

  
	

  In-Clearing Re-entry OVER 1%

  	

   

  	

   

  	

   

  	

  $0.38/item

  	

   

  	

  Correcting of MICR 

  via on-line terminal

  
	

  Proof Encoding

  	

   

  	

  <4 hour window

  >4 hour window

  >6 hour window

  	

   

  	

  $0.032/per field

  $.0260/per field $0.023/per field

  	

   

  	

  MICR encoding of all On-Us and Transit items

  received by Fiserv from Client.  All

  transactions are balanced. The proof tape is forwarded to client. POD, Transit,

  GL, Savings, Loans, Lock Box, Counter Items. Windows are based on first

  deadline - (cash letter or transmission). 

  For work to be processed minimum window is 3 hours.

  
	

  POD/Transit Capture

  	

   

  	

  Per item

  	

   

  	

  $0.02/item

  	

   

  	

  High-speed capture of MICR data, balancing to proof

  totals, out sorting of other On-Us Items (Sav, GL, Loan, etc.) creation of

  various Cash Letters and extraction. 

  A sequence number is spray endorsed on the items.

  
	

  Reject Re-Entry and repair OVER 1%

  	

   

  	

   

  	

   

  	

  $0.45/item

  	

   

  	

  Correcting of MICR data via on-line terminals.

  
	

  Reject Repair

  	

   

  	

  Per item

  	

   

  	

  $0.25/ item

  	

   

  	

  Client required stripping and re-qualification of

  items.

  
	

  Microfilming

  	

   

  	

  Per item

  	

   

  	

  $0.003/item

  	

   

  	

  Microfilming of prime pass items during

  capture.  Inclearings, On-Us or

  Counter Items, $15.00 minimum per roll.

  
	

  Microfilming

  	

   

  	

  Per item

  	

   

  	

  $0.009/item

  	

   

  	

  Additional microfilming pass for Returns, Statement

  Items, Daily Finesort, Electronic Presentment.  $15.00 minimum per roll.

  
	

  Microfilming

  	

   

  	

  Duplicate

  	

   

  	

  $12.000/roll

  	

   

  	

  Additional roll of microfilm.

  
	

  Deposit Corrections

  	

   

  	

  Per item

  	

   

  	

  $2.00/item

  	

   

  	

  Corrections of Client deposit/teller errors.

  Photocopy charges are extra.

  
	

  Same Day Settlement

  	

   

  	

  Per cash letter

  	

   

  	

  $5.00/letter

  	

   

  	

  Fee assessed to accept Same Day Settlement Cash

  Letters on behalf of the Financial Institutions. This is in addition to the

  per item fee charged as a part of the Inclearings.

  
	

  Cash Letter Preparation

  	

   

  	

  Per cash letter

  	

   

  	

  $6.50/letter

  	

   

  	

  Charge for preparation of Cash Letter(s)

  
	

  Image item Scan

  	

   

  	

  Per item

  	

   

  	

  $0.012/item

  	

   

  	

  Scanning of items for the purpose of Image

  Statements, Image Archive and Retrieval.

  
	

  Image item re-Scan

  	

   

  	

  Per item

  	

   

  	

  $0.02/item

  	

   

  	

  Scanning of items for Clients that do not use other

  IP services

  
	

  Image Reject Item Correction

  	

   

  	

  Per item

  	

   

  	

  $0.250/item

  	

   

  	

  Reject repair of image items.

  
	

  Exception Item 

  Pass

  	

   

  	

  Per item

  	

   

  	

  $0.004/item/pass

  	

   

  	

  Single pass of On-Us items for the purpose of

  pulling items for review/return to Client. Statement Cycles are also pulled

  at this time.

  
	

  Fine Sorting

  	

   

  	

  Per item

  	

   

  	

  $0.006/item

  	

   

  	

  High speed sorting of items into account number

  order.  Inclearings, GL, Savings,

  Loans, On-Us, Cycle Sorting, Bulk file Sort, Daily Fine Sort.

  
	

  Serial Sorts

  	

   

  	

  Per item

  	

   

  	

  $0.016/item

  	

   

  	

  High-speed sorting of items into check number order

  per Client Request.

  

 

22

 

II.  Bookkeeping Services

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description

  / Information

  
	

  Returns Items – Qualified –Automated

  	

   

  	

  $1.50/item

  	

   

  	

  Automated pulling of return items upon Client timely

  return decision.  Fiserv strips or

  inserts item into a document carrier, encodes the special Fed character and

  Routing Number of Bank of first deposit. Fiserv balances the items, stamps

  the return reason, prepares the Return Cash Letter advice and delivers to the

  FRB.

  
	

  Return Items – Raw–Automated

  	

   

  	

  $1.00/item

  	

   

  	

  Automated pulling of return items upon Client timely

  return decision.  Items are balanced,

  stamped with the return reason, Cash Letter advice created and delivered to

  the FRB.  FRB qualifies and processes

  the items.

  
	

  Return Items – Qualified –Manual

  	

   

  	

  $3.40/item

  	

   

  	

  Manual pulling of return items upon Client timely

  return decision.  Fiserv strips or

  inserts items into a document carrier, encodes the special Fed character and

  Routing number of the bank of first deposit. 

  Fiserv balances the items, stamps the return reason, prepares the

  Return Cash Letter advice and delivers to the FRB.

  
	

  Late Return Items

  	

   

  	

  $5.00/item

  	

   

  	

  Return item processing that exceeds the normal

  24-hour FRB window for regular returns or is past the established deadline

  for the return decision. Late Returns are subject to collection rules and

  procedures.

  
	

  Fax Requests

  	

   

  	

  $1.00/item/side

  	

   

  	

  Copying and faxing 

  as requested and defined by Client.

  
	

  Large  Dollar

  Notification

  	

   

  	

  $3.25/item

  	

   

  	

  Client notifies Fiserv of the large items to be

  returned.  Fiserv notifies the bank of

  first deposit of the return. (Does include the cost of the return.)

  
	

  Chargeback 

  Forwarding

  	

   

  	

  $2.00/cashletter

  	

   

  	

  Fiserv forwarding of chargebacks via the next

  scheduled courier delivery to the Client or re-deposit to the Fed.  ($50.00 monthly minimum.)

  
	

  Photo Copies

  	

   

  	

  $2.75/item

  	

   

  	

  Upon Client request, Fiserv creates a copy of a

  processed item from microfilm and provides via fax, mail, or both. Turn

  around within a 24-hour timeframe.

  
	

  Photo Copies – Expedited

  	

   

  	

  $4.00/item

  	

   

  	

  Upon Client request, Fiserv creates a copy of a

  processed item from microfilm and provides via fax, mail or both.  Turn around within a 4-hour timeframe.

  
	

  Research Work

  	

   

  	

  $25.00/hour

  	

   

  	

  Any client requested research other than a Center

  created error.  Billed in 1⁄2 hour

  increments.

  
	

  Original Item Retrieval

  	

   

  	

  $3.00/item

  	

   

  	

  Upon Client request, Fiserv pulls an original item

  for forwarding via fax, mail or both to the Client or FRB.

  
	

  Fed or Correspondent Adjustments

  	

   

  	

  $10.00/item

  	

   

  	

  Research of outages.  (Plus Research time if over 1⁄2 hour).

  
	

  Non-Cash Collection

  	

   

  	

  $2.00/envelope

  	

   

  	

  Fiserv forwarding of envelope via the next scheduled

  courier delivery to the FRB.

  
	

  Daily Fed Notification

  	

   

  	

  $55.00 Per Month

  	

   

  	

  Notification of Daily Cash Letter Deposited at the

  FRB.

  
	

  Large Item Review and Fax to Client

  	

   

  	

  $0.29/item

  	

   

  	

  Fiserv review of points of negotiability and fax to

  client for pay / return decision. 

  Signature is not reviewed with specimen file

  

 

23

 

III.  Image Archive(1)

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description / Information

  
	

  Seven Year Image Storage

  	

   

  	

  $0.003/item

  	

   

  	

  Storage of images for seven years using the Fiserv

  migrated media storage capability.

  
	

  On- Line Image Retrieval -first 90 days

  	

   

  	

  $0.200/item query

  	

   

  	

  Retrieval of image items within the first 45 days of

  scanning with or without the Seven-Year Image Storage service.

  
	

  On- Line Image Retrieval -over n90 days

  	

   

  	

  $2.75/item query

  	

   

  	

  Retrieval of image items during the time span of 46

  days to two years of storage following scanning with Seven-Year Image Storage

  service.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Image Library Software

  	

   

  	

  $995.00/first copy

  	

   

  	

  Software for the viewing of images on CD-ROM.

  
	

  Image Library Software

  	

   

  	

  $500.00/add’l copies

  	

   

  	

   

  
	

  Annual Maintenance on Image Library Software

  	

   

  	

  $75.00/copy

  	

   

  	

  Annual fee for software support after first year.

  

 

IV.  Image Distribution(1)

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description

  / Information

  
	

  CD ROM Distribution

  	

   

  	

  $25.00/CD plus

  postage/handling for next day delivery

  	

   

  	

  Creation of CD containing imaged items.

  

 

V.   Image Statements(2)

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description

  / Information

  
	

  Scan Marketing Image

  	

   

  	

  $100.00/each

  	

   

  	

  Scanning of a promotional marketing insert to be

  printed on the Image Statements.

  
	

  Special Statement Cuts

  	

   

  	

  $10.00/each

  	

   

  	

  Creation of Image Statement not at a normal cycle

  date.

  
	

  Non End of Month image Statements

  	

   

  	

  $0.50/acct

  	

   

  	

  Image statements, front of items only, includes five

  sides of print, composition and insertion.

  
	

  End of Month Image Statements

  	

   

  	

  $0.70/acct

  	

   

  	

  Image statements, front of items only, includes five

  sides of print, composition and insertion.

  
	

  Image Statement Composition - Additional Sides

  	

   

  	

  $0.04/side

  	

   

  	

  Additional sides of print on image Statements.

  

 

1 Startup costs to be applied for scanner programming and conversion

support $5,000.00

2 

 

24

 

VI.  Set up / Other  Fees

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description

  / Information

  
	

  Image Processing Set Up Fee

  	

   

  	

  $5,000.00

  	

   

  	

  Minimum. Bid provided.

  
	

  Image Processing Minimum Per Month

  	

   

  	

  $1,000.00/month

  	

   

  	

  If a combination of traditional services plus

  Imaging, the monthly minimum is $2,500. Pass-through charges are excluded

  from minimum.

  
	

  Processing Minimum Per Month

  	

   

  	

  $1,000.00/month

  	

   

  	

  Traditional Item Processing Services. Pass-through

  charges are excluded from minimum.

  
	

  Programming

  	

   

  	

  $150.00 per hour

  	

   

  	

  Bid provided. 

  Special requests that require detailed programming.

  
	

  Training

  	

   

  	

   

  	

   

  	

  Bid provided.

  
	

  Conversions /Implementation Fee

  	

   

  	

  Per implementation

  minimum fee $5,000

  	

   

  	

  Estimate provided, ($5,000 minimum)

  

 

VII.  Customer Printed Statements - Rendering

& Safekeeping (truncated)

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description / Information

  
	

  Bulk File Storage

  	

   

  	

  $0.004/item

  	

   

  	

  Bulk filed items housed in Fiserv facility pending

  statement processing.

  
	

  Truncated/Image Item Storage & Destruction

  	

   

  	

  $0.0045/item

  	

   

  	

  Truncated/Imaged items housed in Fiserv facility

  pending destruction after 60 days.

  
	

  Additional Storage

  	

   

  	

  $0.0001/item/month

  	

   

  	

  Items housed in Fiserv facility over the 60-day

  storage.

  
	

  Statement Rendering - Automated

  	

   

  	

  $0.10/acct (minimum

  $200.00 per cycle)

  	

   

  	

  Machine rendering of statements (Additional charge

  of $0.10 per statement for month end cycle drop). Statement format must

  adhere to specifications for automated equipment.(see below)

  
	

  Statement Rendering - Manual

  	

   

  	

  $0.50/acct

  	

   

  	

  Manual rendering of statements.

  
	

  Non Enclosure Statements-Truncated Manual

  	

   

  	

  $0.18/acct

  	

   

  	

  Statements that do not contain enclosures such as

  Truncated, Savings, CD, Loan and Analysis. (truncated manual).

  
	

  Non Enclosure Statements Truncated-Automated

  	

   

  	

  $0.10/acct (minimum

  $200.00 per cycle)

  	

   

  	

  Statements that do not contain enclosures such as

  Truncated, Savings, CD, Loan and Analysis. (truncated automated). Statement

  format must adhere to specifications for automated equipment.(see below)

  
	

  Special and Hold Statements

  	

   

  	

  $2.00/acct

  	

   

  	

  Statements that do not conform to general bulk file

  procedures - daily, weekly, BI-weekly cycles, conversion cycles, one-time

  requests, differences in enclosure counts.

  
	

  Statement Items Inserted ManualStatement Items

  Inserted Automated

  	

   

  	

  $0.01/item$0.005/item

  	

   

  	

  Items are matched to corresponding Statements and

  prepared for mailing.  This is also

  used for inserting promotional items, stuffers, and additional pages.

  
	

  Selected Field Inserts

  	

   

  	

   

  	

   

  	

  Bid provided.

  
	

  Statement/Envelope Inventory Management

  	

   

  	

  $20.00/month

  	

   

  	

  Inventory of Statement forms and envelopes.

  
	

  Reformatting from Print file

  	

   

  	

  $10.00/cycle

  	

   

  	

  Creation of reformatted print file upon receipt of

  statement file.

  
	

  Other Mailings

  	

   

  	

   

  	

   

  	

  Bid provided.

  
	

  Statement Printing Non Image

  	

   

  	

   

  	

   

  	

  Bid provided if service available.

  

 

25

 

VIII.  Miscellaneous

 

	

  Service

  	

   

  	

  Unit Fee

  	

   

  	

  Description / Information

  
	

  Subpoena Requests/Research

  	

   

  	

  $15.00/hour

  	

   

  	

  Research requested by subpoena. Billed in 1⁄2 hour

  increments plus $1.00 per item Photocopy fee. Bid provided

  
	

  Special Handling - Account Number Formats

  	

   

  	

   

  	

   

  	

  Bid provided.

  
	

  Special Handling - Multiple R/T Numbers

  	

   

  	

   

  	

   

  	

  Bid provided.

  
	

  Data Entry

  	

   

  	

   

  	

   

  	

  Bid provided.

  
	

  Deposit Bag/Envelope Handling (Optional service)

  	

   

  	

  $1.50 per bag/envelope

  	

   

  	

  Receipt and manifesting of any direct deposit from

  Client’s customer to IP center or special handling. $100.00 monthly minimum

  and $50.00 per occurrence for cash handling fee.

  
	

  Microfiche - Original

  	

   

  	

  $2.00 per fiche

  	

   

  	

  Original record of MICR items captured daily.

  
	

  Microfiche - Duplicate

  	

   

  	

  $0.45 per fiche

  	

   

  	

  Duplicate microfiche copy of MICR items captured daily

  for Client copy.

  
	

  Transmission

  	

   

  	

  $0.005/item

  	

   

  	

  Transmitting of MICR data to a Client application

  processor (non-Fiserv host).  Also for

  the receipt of Exception Item Files/Statement File/Print File. (Minimum

  $15.00  per file)

  
	

  Statement Format -Automated Equipment Requirements

  	

   

  	

   

  	

   

  	

  Statement must contain bar coding compatible to the

  equipment being used. The bar coding must reflect the number of enclosures

  and page identification. The enclosure count must accurately reflect the

  number of expected items excluding stuffers. Bar coding must reflect if the

  statement is a “Special Pull” or a “Hold” statement. The checks to be

  rendered must have “stop document dividers” between accounts. There must be a

  maximum number of items and statement stuffers (defined by Center). The

  envelopes must meet size criteria, usually defined as Standard #10 and must

  be a “wet seal” not “self seal”. Truncated accounts must be separated from

  accounts receiving checks.

  

 

26

 

Exhibit B-3

 

Item Processing

Performance Standards

 

1.             Client preparation

and presentation of work for Fiserv proof department

 

a.        SUBJECT:   Presentation

and Delivery of Work

b.       DESCRIPTION:

• Credits come

before debits

• Customer

deposit is the first credit

• Items are

encoded with route/transit number, account number and proper  trancode

•

If multiple amounts, correct amount is circled

(Currency not to be included)

c.        PROCEDURE:   Fiserv

will notify Client of specific non-performance issues as required.

 

2.             Client preparation

and presentation of work for Fiserv proof department

 

a.        SUBJECT:   Categories

b.       DESCRIPTION:

• Single items

(one-on-ones) batched

• Multiple

item transactions batched

c.        PROCEDURE:   Fiserv

will notify Client of specific non-performance as required.

 

3.             Client preparation

and presentation of work for Fiserv proof department

 

a.        SUBJECT:   Batches and

Control Tickets

b.       DESCRIPTION:

• All Tickets

are teller stamped

• All items

are properly logged and recorded for filming and then microfilmed

• Bundles are

limited to 3” or 250 items, whichever limit is reached first.

• Tape

listings accompany multiples

• Single item

deposits have headers preceding them and a tape listings

c.        PROCEDURE:   Fiserv

will notify Client of specific non-performance issues as required.

 

4.             Client preparation

and presentation of  work for Fiserv

proof department

 

a.        SUBJECT:   Work Shipment

b.       DESCRIPTION:

• All work for

proof is in clear plastic bag

•

Correspondent bank correspondence in clear plastic bag

• Clear

plastic bag is in the Fiserv bag

• Other

correspondence in the Fiserv bag

c.        PROCEDURE:   Fiserv

will notify Client of specific non-performance issues as required.

 

5.             Fiserv proof and

balancing of work received from Client for processing

 

a.        SUBJECT:   Proof of

Deposit for dollar amount encoding

b.       DESCRIPTION:

• Dollar

encoding errors to meet service goals

• Corrections

made with accepted medium

• Customer

Corrections are legible and complete

• Customer

Corrections have the correct reason listed

• All Customer

Corrections over $100.00 are documented with accompanying copies as required.

• Items are

endorsed with the proper bank stamp in proper Regulation CC position

• Transaction

Corrections using G/L debits and credits contain the correct information

• Suspense

documentation is legible and complete

• Items placed

into holdovers by Fiserv will be documented

 

27

 

• Differences

of under $10.00 will be charged to a General Ledger account

c.        SERVICE GOAL:   99.997

%

d.       PROCEDURE:

•

Client will notify Fiserv of specific non-performance issues by submitting a

service incident report in the form approved by Fiserv with accompanying

documentation to Client Services.

e.        MEASUREMENT:   Percent

of Proof Encoding Volume

 

6.             Fiserv modification of MICR rejects

 

a.        SUBJECT:   Reject

Re-entry/ Reconciling or Balancing

b.       DESCRIPTION:

• Modified

MICR reject errors to meet service goals

• Transaction

Corrections using G/L debits and credits contain the correct information

• Suspense

documentation is legible and complete

• Items placed

into suspense by Fiserv will be documented

• Differences

of under $10.00 will be charged to a General Ledger account

c.        SERVICE GOAL: 99.7%

d.       PROCEDURE:

•

Client will notify Fiserv of specific non-performance issues by submitting a

service incident report in the form approved by Fiserv with accompanying

documentation to Client Services.

e.        MEASUREMENT:   Percent

of Volume  (Based on total rejects)

 

7.             Fiserv preparation

of outgoing transit items

 

a.     SUBJECT:      Transit

Cash Letter Processing

b.     DESCRIPTION:

• Cash Letters

are sent out with correct total(s)

• Cash Letters

are sent with complete bundle count(s)

• Cash Letter

differences are explained

• Cash Letters

for proper bank are used

• Cash Letters

for the correct correspondent are used

• Cash Letters

sent out in timely manner

• Low speed

cash letters will be sent out within 24 hours of stated deadlines

• On-us items

will not be sent out in transit cash letters

c.     SERVICE GOAL: Not to exceed one error per

cash letter endpoint  per month

• Cash Letters

Items sent out 99.4% of the time on time

d.     PROCEDURE:

•

Client will notify Fiserv of specific non-performance issues by submitting a

service incident report in the form approved by Fiserv with appropriate

documentation to Client Services.

e.     MEASUREMENT:    Record of

Occurrence based on cash letter endpoints

 

8.             Fiserv capture and transmission of work from proof

department

 

a.     SUBJECT:      Second

Shift Transmissions

b.     DESCRIPTION:

• All

transmissions are sent in the approved Fiserv format

• All

transmissions are sent to Fiserv in such time to insure that posting can be

completed timely.

• Transmission

deadlines will not be earlier than 11:00 p.m. Mon. - Thurs. or 12:00 a.m.

Friday

c.     SERVICE

GOAL: Transmission errors or delays are not to exceed two per month that are

within Fiserv’s control.

d.     PROCEDURE:

•Client

will notify Fiserv of specific non-performance issues by submitting a service

incident report in the form approved by Fiserv with accompanying documentation

to Client Services.

e.     MEASUREMENTS:     Record of Occurrences

 

28

 

9.             Fiserv preparation

of statements and check filing requirements

 

a.     SUBJECT:      Statement

Preparation

b.     DESCRIPTION:

•

End of the month statements are sent no later than the 4th business day from

receipt of the printed statements from Client and/or Agent and

completion/receipt of paid exception items.

•

Non end of the month statements are sent no later than the 3rd business day

from receipt of the printed statements from Client and/or Agent and

completion/receipt of paid exception items.

•

Special account statements are sent out no later than the 3rd business day from

receipt of the printed statements from Client and/or Agent and

completion/receipt of paid exception items.

• Crippled

statements will be mailed out within two additional days.

• There will

be only one statement per envelope.

• The correct

customer’s checks will accompany the statement.

• Hold

statements that are properly labeled will be sent to Client for handling.

• Zip codes

and addresses will be eliminated on all hold accounts.

• The correct

number of statement  pages are in the

envelope.

•

Client will submit statement stuffers to center with appropriate instructions

noted on the Stuffer Instruction Form. 

Stuffers must arrive two days prior to cycle date to insure proper

handling.

• The correct

statement stuffer(s) will be included in the statement.

• Notice of

missing item(s) will be included in the statement if the statement is missing 3

or fewer enclosures.

•

Fiserv will monitor and report delays for receipt of statement print to Client

within 24 hours of the expected time of receipt.

 

c.     SERVICE GOAL: 99.9%  (10 errors per 10,000 Statements)

•

Fiserv will also manage statements with incorrect item counts to no more than

3% mailed with incorrect enclosure counts.

d.     PROCEDURE:

• Client will

notify Fiserv of specific non-performance issues by submitting a service

incident report in the form approved by Fiesrv with accompanying documentation

to Client Services.

e.     MEASUREMENT:       Percent of Total Statements Rendered

 

10.           Fiserv

processing of exception items (Outgoing Return Items) when Client has submitted

final return decisions by 12:30 p.m. daily

 

a.     SUBJECT:      Qualified

Returned Items

b.     DESCRIPTION:

• The correct items will be returned

• All returned

items are stamped with the correct return reason

• The items

Client wants returned are returned on the day they are listed as exceptions

• The T-186

balances to the Fed return total daily

• G/L entries

made for all check reversals

• Rejected

debit totals balance

• Large items

notified through EARNS

• Items are

returned within specified Regulation CC. time requirements

• Items are

paid using correct account number and trancode

• Proper

bank’s T-186 forms are used

c.     SERVICE GOAL: 99.94%  (6 errors per 10,000 return items)

d.     PROCEDURE:

•

Client will notify Fiserv of specific non-performance issues by submitting a

service incident report in the form approved by Fiserv with accompanying

documentation to Client Services.

e.     MEASUREMENT:    Percent of Total Qualified Return Items

 

29

 

11.           Fiserv research of

items, photocopy production

 

a.     SUBJECT:      Research

b.     DESCRIPTION:

•

The turn-around time for a research request will be 48 hours from the time of

receipt (unless Fiserv otherwise notifies Client, as in the case of subpoena

research or other significant or voluminous research requests).

•

For subpoena research or other significant or voluminous research requests,

Fiserv will provide a completion commitment estimate to Client within 48 hours

of receipt.

• Best effort

will be made to produce quality photocopies

• Trace

reports will be delivered to Client within 2 business days

c.     SERVICE GOAL: 99.0% (1 error per 100

requests)

d.     PROCEDURE:

•

Client will notify Fiserv of specific non-performance issues by submitting a

service incident report in the form approved by Fiserv with accompanying

documentation to Client Services.

e.     MEASUREMENT:    Percent of Total Research Request and

Photocopies Serviced

 

12.Fiserv Image

scanning of Client on-us items

a.     DESCRIPTION:

• All on-us

items scanned daily

b.     SERVICE GOAL:          99.95 (50 error per 100,000 on-us items)

 

13. Fiserv

preparation and mailing of check image statement

 

a.             DESCRIPTION:

•    All non-end of month image statement print

files are delivered to printer within three days of statement cycle cut-off

date

•    All end of month image statement print

files are delivered to printer within four days of statement cycle cut-off date

•    b.       SERVICE

GOAL:  99.95 (5 errors per 10,000

statements)

 

14. Fiserv preparation and distribution of check images on CD-ROM

 

a.             DESCRIPTION:

•    All CD-ROM’s will be distributed daily no

more than 48 hours following their processing date

•    The correct CD-ROM will be provided

•    b.       SERVICE

GOAL:  99.00 (1 errors per CD-ROM)

 

30

 

Exhibit B-4

 

DESIGNATION

OF PAYMENT

FOR ITEM PROCESSING SERVICES

 

Client shall pay for monthly item processing services by ACH

transaction, as per Agreement sub-paragraph 3.(e).

 

Complete the Authorization Agreement below for ACH Debit.

 

Authorization Agreement For Automatic Payments

For Item Processing Services

 

Fiserv is hereby authorized to initiate debit entries on Client’s

account at the depository institution indicated below, hereinafter called

DEPOSITORY, for payment of item processing services. (All information must be

provided)

 

	

  DEPOSITORY NAME

  	

   

  
	

  CITY

  	

   

  	

  STATE

  	

   

  	

  ZIP

  	

   

  
	

  TRANSIT/ABA NO.

  	

   

  	

  MASTER ACCOUNT NO.

  	

   

  
	

  ACCOUNT NAME

  	

   

  
										

 

This authority is to remain in effect until Fiserv and DEPOSITORY have

received written notification from Client of termination in such time to afford

Fiserv and DEPOSITORY a reasonable opportunity to act on it. Client agrees to

direct such notification to the Corporate Finance and Accounting Department of

Fiserv at19935 Walnut Drive, Walnut, CA 

91789. Client has the right to stop payment of a debit by notifying

DEPOSITORY in time to allow DEPOSITORY a reasonable opportunity to act prior to

charging the account listed above.

 

	

  CLIENT NAME:

  	

   

  
	

  ADDRESS:

  	

   

  
	

  CITY

  	

   

  	

  STATE

  	

   

  	

  ZIP

  	

   

  
	

  AUTHORIZED SIGNATURE

  	

   

  
	

   

  	

  (Signature must be identical to that now on file

  with DEPOSITORY.)

  
	

  TITLE

  	

   

  
	

  DATE

  	

   

  
										

 

31

 

F

 

DISPUTED ITEM(S) FOR ACH PAYMENT

 

	

   

  	

   

  	

   

  	

   

  	

   

  
	

  CLIENT NAME

  	

   

  	

  DATE OF REQUEST

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  INVOICE NUMBER

  	

   

  	

  INVOICE DATE

  
						

 

ITEM(S) DISPUTED

AND AMOUNT:

 

	

   

  
	

   

  
	

   

  
	

   

  
	

   

  
	

   

  
	

   

  

 

REASON FOR

DISPUTE:

 

	

   

  
	

   

  
	

   

  
	

   

  
	

   

  
	

   

  
	

   

  

 

Please deduct a

total of $                                               from my next ACH

debit payment.  I will resolve these

issues with my Fiserv Account Executive within the next 10 business days.

 

 

	

   

  	

   

  	

   

  	

   

  
	

  NAME - SIGNED BY

  	

  TITLE

  
	

   

  	

   

  
	

   

  	

   

  	

   

  

 

32SUBLEASE AGREEMENT

EXHIBIT 10.6

 

SUBLEASE AGREEMENT

 

This Sublease Agreement (“Sublease”) is entered as of June 6,

2001, between Amazon.com Holdings, Inc., a Delaware corporation (“Sublandlord”)

and Pacifica Bancorp, Inc. a Washington corporation (“Subtenant”).

 

R E C I T A L S:

 

A.            Amazon.com, Inc., a

Delaware corporation (“Original Tenant”) and Opus Union Station, L.L.C. (“Original

Landlord”) are parties to a Multi-Tenant Office Lease Agreement dated as of

August 23, 1999, as amended by that certain Amendment 1 to the Multi-Tenant

Office Agreement dated as of May 21, 2001 (the “First Amendment”) (as

amended from time to time, the “Prime Lease”), Original Tenant’s

interest in  which is now held by

Sublandlord.  Effective June 12, 2001,

Original Landlord’s interest in the Lease is now held by Seattle Union Station

II. L.L.C., a Washington limited liability company (“Landlord”).  Pursuant to the Prime Lease, Sublandlord

leases 253,769 square feet of Rentable Area (as defined in the Prime Lease)

(the “Leased Premises”) from Landlord at the Opus Center South Building

(the “Building”).  The Leased

Premises and the Building are more fully described in the Prime Lease attached

as Exhibit

A to this Sublease.

 

B.            Subtenant wishes to

acquire from Sublandlord the right to occupy a portion of the 1st floor of the

Building as depicted on the illustration attached hereto as Exhibit B and  consisting of approximately 6,280 square feet of Rentable

Area (the “Subleased Premises”). 

The final measurement of the entire 1st floor, determined pursuant to

Section 1.1 of the Prime Lease, is 13,919 square feet of Rentable Area.

 

AGREEMENT

 

In consideration of the mutual promises of the parties and for other

good and valuable consideration, the receipt and sufficiency of which are

acknowledged, the parties agree as follows:

 

1.             Sublease of Subleased Premises.  Sublandlord subleases to Subtenant, and

Subtenant subleases from Sublandlord, the Subleased Premises, subject and

pursuant to the terms and conditions of this Sublease.  After completion of the Subtenant’s

Improvements, Sublandlord shall confirm to Subtenant in writing the Rentable

Area of the Subleased Premises using the measurement standards set forth in the

Prime Lease .

 

2.             Term of Sublease.  The term of this Sublease (“Sublease Term”)

shall commence (“Sublease Commencement Date”) the earlier of (i) August

1, 2001 or (ii) Substantial Completion of the Subtenant’s Improvements (as

defined in Section 6.1 below).  The term

“Substantial Completion” as used in this Sublease shall have the meaning set forth

in the Prime Lease (except that references to the Tenant’s Improvements will be

deemed references 

 

 

to the Subtenant’s

Improvements).  Unless earlier

terminated in accordance with the terms and conditions of this Sublease, the

Sublease Term shall expire with respect to the entire Subleased Premises on

April 29, 2011.

 

3.             Basic

Rent and Additional Rent. 

Rent to be paid under this Sublease shall include Basic Rent and

Additional Rent as described in this Section 3, and all other sums that

may be owing from Subtenant to Sublandlord under the terms of this Sublease.

 

3.1          Basic

Rent

 

Basic Rent during the Sublease Term will be (i) $25.50 per square foot

of Rentable Area in the Subleased Premises per year from the Sublease

Commencement Date through March 31, 2006 and (ii) $28.00 per square foot of

Rentable Area in the Subleased Premises per year from April 1, 2006 through

expiration of the Sublease Term. 

Subtenant will begin paying Basic Rent as of the Sublease Commencement

Date.  Basic Rent shall be paid in equal

monthly installments without previous demand, invoice or notice for

payment.  Each installment of Basic Rent

shall be due and payable in advance on the first day of each month during the

Sublease Term.

 

3.2          Additional

Rent

 

Commencing on the Sublease Commencement Date, Subtenant will pay as

Additional Rent (i) Subtenant’s Share (as that term is defined below) of the

amounts owed by Sublandlord as Tenant’s Share of Operating Expenses (as that

term is defined in the Prime Lease) under Section 2.2 and Article 3 of the

Prime Lease and (ii) all other sums that constitute Additional Rent under

the terms of the Prime Lease and that pertain to the Subleased Premises or to

Subtenant’s use or occupancy of the Subleased Premises.  “Subtenant’s Share” shall be a

fraction, the numerator of which is the Rentable Area in the Subleased Premises

and the denominator of which shall be 253,769 (which is the total Rentable Area

in the Building as determined pursuant to Section 1.1 of the Prime Lease

and the First Amendment).  Subtenant

will pay Subtenant’s Share of the amounts payable pursuant to clause (i) above,

together with Basic Rent, on the first day of each month during the Sublease

Term without previous demand, invoice or notice for payment.  Subtenant will pay all amounts payable

pursuant to clause (ii) above, and any other sums due under this Sublease

(other than under Section 3.1 or clause (i) of this Section 3.2), within

twenty-five (25) days after receiving Sublandlord’s invoice therefor.

 

3.3          Manner

and Method of Payment

 

All rent payments shall be made in United States Dollars, without

deduction or offset, and delivered to Sublandlord at the address set forth in

Section 12 of this Sublease, or to such other entity and/or at such other

address as Sublandlord may designate in writing from time to time.  Basic Rent and Additional Rent relating to

Operating Expenses for any partial month shall be prorated in proportion to the

number of days in that month.

 

2

 

3.4          Security

Deposit

 

Within 10 banking days after execution of this Sublease, Subtenant

shall deposit with Sublandlord a security deposit (“Security Deposit”)

in the amount of $175,840.00 (the “Deposit Amount”).  The Security Deposit shall be held by Sublandlord

as security for Subtenant’s performance of its obligations under this Sublease

and may be applied, at Sublandlord’s sole discretion, against any obligation

incurred by Subtenant in connection with this Sublease that is not timely paid

or performed (as the case may be), including the payment of Basic Rent and

Additional Rent, the repair of any damage that is Subtenant’s responsibility,

and all other obligations of Subtenant under this Sublease.  If Sublandlord debits the Security Deposit,

Sublandlord shall notify Subtenant of the occurrence and amount of the debit,

and Subtenant shall promptly pay to Sublandlord the amount necessary to restore

the Security Deposit to the full Deposit Amount.

 

A.            Subtenant may elect

to provide all or any portion of the Security Deposit in the form of cash or in

the form of a letter of credit (the “LOC”).  If Subtenant elects to satisfy all or any portion of the Security

Deposit with cash, Sublandlord, Sublandlord is not required to keep the

Security Deposit separate from its general funds and Subtenant is not entitled

to interest on the Security Deposit.

 

B.            If Subtenant elects

to satisfy all or any portion of the Security Deposit with an LOC, the LOC will

be an irrevocable and unconditional standby letter of credit, issued by a

financial institution (other than Subtenant) satisfactory to Sublandlord in its

discretion, with a term of at least one year, drawable by Sublandlord upon

presentation, and substantially in the form of Exhibit L attached to the Prime Lease (except that the

references to Landlord as beneficiary and Sublandlord as applicant shall be

changed to Sublandlord as beneficiary and Subtenant as applicant).  Sublandlord may draw upon the LOC under the

same terms and conditions as Sublandlord may apply a cash security

deposit.  In addition, Sublandlord may

draw upon the LOC if Subtenant fails to deliver to Sublandlord no later than 30

days prior to the expiration date of the existing LOC a renewal or extension of

the LOC for a term of not less than one year. 

Notwithstanding the foregoing, and unless a renewal or extension of the

LOC has not been delivered to Sublandlord 30 days prior to the expiration date

of the existing LOC, Sublandlord will give Subtenant 5 business days prior

written notice before drawing upon the LOC.

 

C.            If Subtenant

performs each of its obligations under this Sublease, then the Security

Deposit, or any then-remaining balance thereof, shall be returned to Subtenant

(or the LOC cancelled, as the case may be) within thirty (30) days after the later

of (i) the expiration of the Sublease Term or termination of this Sublease, and

(ii) the date on which Subtenant surrenders the Subleased Premises to

Sublandlord in the condition required by this Sublease (unless Subtenant

retains possession of the Subleased Premises pursuant to the Recognition

Agreement (defined below), in which case clause (i) will apply).

 

3

 

4.             Additional Obligations of Subtenant

 

4.1          Incorporation

by Reference of Prime Lease Terms

 

In addition to the payment of rent, Subtenant agrees, for the benefit

of Sublandlord and Landlord, that during the Sublease Term Subtenant shall

perform each and every one of the obligations of the tenant under the Prime

Lease that is incorporated into this Sublease. The following terms, covenants,

and conditions of the Prime Lease are incorporated into this Sublease with the

same force and effect as if Sublandlord were the landlord under the Prime Lease

and Subtenant were the tenant under the Prime Lease, except that, except as may

be otherwise expressly provided, each reference in such incorporated provisions

to “Lease” shall be deemed a reference to this “Sublease” and each reference to

“Premises” shall be deemed a reference to the “Subleased Premises”:  Sections 1.2.2; 1.2.3; 1.2.4; 2.3; 2.4; 3.6;

3.8; Article 4 (except (i) the last sentence of Section 4.1, (ii) with respect

to Section 4.4, only the first three sentences thereof and (iii)  with respect to Section 4.3, the term

“Landlord” shall mean “either Landlord or Sublandlord” except in the last

sentence of Section 4.3, in which the term “Landlord” shall mean “Landlord

and Sublandlord”); Article 5 (except for the second paragraph of

Article 5.4, and except that with respect to Article 5, the term “Landlord

Parties” shall have the meaning ascribed to it in the Prime Lease and shall

also include Sublandlord and its officers, directors and shareholders); Article

6 (subject to the limitations set forth in Section 4.3 of this Sublease);

Section 7.1 (subject to the limitations set forth in Section 4.3 of this

Sublease); 7.2.1 (except the first and fifth sentences thereof); the first and

third sentences of Section 7.2.2; the first and third paragraphs of

Section 8.1; Section 8.2 (except that with respect to Section 8.2

the term “Landlord” shall mean “both Landlord and Sublandlord” and the

reference to $150,000 shall be changed to $25,000); Section 8.3 (except

that the reference to $100,000 shall be changed to $25,000);  Sections

8.4; 8.5 (except that with respect to Section 8.5, the term “Landlord

Parties” shall have the meaning ascribed to it in the Prime Lease and shall

also include Sublandlord and its officers, directors and shareholders);

Sections 9.1 (first four sentences only) and 9.6; 10.1 (except that with

respect to Section 10.1.5, the term “Landlord Parties” shall have the

meaning ascribed to it in the Prime Lease and shall also include Sublandlord

and its officers, directors and shareholders); 10.2.3; 10.3 (except that with

respect to Section 10.3, the term “Landlord Parties” shall have the

meaning ascribed to it in the Prime Lease and shall also include Sublandlord

and its officers, directors and shareholders); 10.4 (except that with respect

to Section 10.4, the term “Landlord Parties” shall mean Sublandlord and

its officers, directors and shareholders); 10.5; 10.6; 10.7; Article 11

(subject to the limitations set forth in Section 4.3 of this Sublease); Article

12 (subject to the limitations set forth in Section 4.3 of this Sublease);

Article 13; 14.1 (except that the applicable cure or grace periods under

Sections 14.1.2 and 14.1.4 shall be reduced by 3 business days); 14.2; 14.3;

14.4; the first paragraph of 14.5; 14.6; 14.7; 15.4 (except that, in addition,

Subtenant will execute any such document at Landlord’s request); 16.1 (except

that the term “Commencement Date” shall mean the Sublease Commencement Date and

excluding the proviso in the 3rd sentence and excluding the 4th sentence); 16.2

(except that the term “Term” shall mean the Sublease Term); Sections 17.1.14

(as modified by the First Amendment); 17.11.1; 18; 19.1 (as to notices to

Landlord); 19.4; 19.5; 19.7;

 

4

 

19.8; 19.9; 19.10

(except that with respect to Section 19.10, the term “Landlord Parties”

shall mean “Sublandlord and its officers, directors and shareholders”); 19.12;

19.13; 19.16; 19.17; 19.18; 19.20 (except the last sentence); 19.21; 19.23;

19.24; Exhibit A of the Prime Lease with respect to those terms used in

the foregoing provisions or that are necessary in order to accurately define

those terms; and paragraph 11 of the First Amendment.  Notwithstanding anything to the contrary in the foregoing,

Subtenant shall obtain the insurance required by Section 10.1 of the Prime

Lease and shall name Landlord and its Property Manager and Sublandlord as

additional insureds thereunder.

 

4.2          Subject

to Prime Lease

 

This Sublease is subject and subordinate to the Prime Lease (including

the provisions thereof not incorporated herein by reference) and to all of

Landlord’s rights under the terms of the Prime Lease.   Subtenant has no authority, and shall not attempt, to exercise

any of Sublandlord’s options (if any exist) to extend or terminate the Prime

Lease or to add or remove space from the Leased Premises.  Subtenant shall, within ten (10) days after

request made by either Landlord or Sublandlord, execute and deliver a

subordination agreement requested by any current or future mortgagee or ground

lessor of the Building or any portion thereof in a commercially reasonable form

(including without limitation the form attached hereto as Exhibit F),

subordinating this Sublease to the interest of such mortgagee or ground

lessor.  Sublandlord and Landlord (but,

with respect to Landlord, subject to the terms and conditions of the Consent

and the Recognition Agreement) shall have no liability whatsoever to Subtenant

with respect to (i)  termination of the

Prime Lease for any reason (including, without limitation, Sublandlord’s

default thereunder) or (ii) termination of the Sublease as a result of

termination of the Prime Lease.

 

4.3          Building

Services

 

Notwithstanding anything to the contrary in this Sublease (including

Section 4.1 above), Subtenant acknowledges that Sublandlord does not have

control of the Building or the Building systems, and that Sublandlord will not

provide utilities, maintenance, repair or restoration work or other Building

services (including, without limitation, those services and obligations to be

performed by Landlord under Articles 6, 7, 11 and 12 of the Prime Lease).  Subject to the terms of this

paragraph 4.3 and the Landlord’s Consent, Subtenant will look solely to

Landlord for performance of the services to which Sublandlord is entitled under

Article 6 and 7.1 of the Prime Lease. 

Without limiting the generality of the foregoing, Sublandlord shall have

no liability for any interruption or stoppage of services, and no such

interruption or stoppage of services shall relieve Subtenant from any

obligation that it may have under this Sublease, including without limitation,

the obligation to pay Basic Rent and Additional Rent; provided, however, that

if Sublandlord’s Basic Rent is abated with respect to any portion of the

Subleased Premises pursuant to Section 6.3 of the Prime Lease, and if the

interruption or stoppage is not caused by misuse or neglect by Subtenant or

Subtenant’s agents or employees, then Basic Rent for the portion of the

Subleased Premises that is not 

 

5

 

tenantable shall abate for the period of time that

Sublandlord’s Basic Rent abates pursuant to Section 6.3 of the Prime Lease

with respect to that portion of the Subleased Premises.

 

Sublandlord, upon receipt of written notice from

Subtenant, shall make demand upon Landlord to take all appropriate action for

the correction of any defect, inadequacy or insufficiency in Landlord’s

performance under the Prime Lease that materially interferes with or materially

adversely affects Subtenant’s use of the Subleased Premises or rights granted

to Subtenant pursuant to this Sublease. 

If, after receipt of written request from Sublandlord, Landlord shall

fail or refuse to cure such defect, inadequacy or insufficiency, Sublandlord

(with Subtenant’s cooporation) will make good-faith commercially reasonable

efforts to enforce its rights under the Prime Lease against Landlord for the

benefit of Subtenant such that Subtenant will receive the full benefit of the

rights granted to Subtenant under this Sublease.  In connection with any such enforcement of the Prime Lease by

Sublandlord, (a) attorneys employed for such purposes shall be subject to the

approval of both Sublandlord and Subtenant, and (b) the costs and expenses of

such enforcement (including, without limitation, attorneys fees, court costs,

and the amount of any monetary judgments against Sublandlord arising out of any

counterclaim made by Landlord in any litigation) shall be paid by Subtenant as

such costs and expenses are incurred.

 

4.4.         Subtenant

to Comply with Prime Lease

 

Subtenant shall neither do nor permit anything to be

done that would cause the Prime Lease to be terminated or forfeited by reason

of any right of termination or forfeiture or default reserved or vested in

Landlord under the Prime Lease, and Subtenant shall indemnify and hold

Sublandlord harmless from and against all claims, actions, liabilities,

damages, costs, penalties, forfeitures, losses or expenses of any kind

whatsoever including, without limitation, reasonable attorneys’ fees, arising

out of Subtenant’s breach of the foregoing covenant.  Subtenant will forward to Sublandlord, immediately upon receipt

thereof, copies of any notices relating to Subtenant’s occupancy or use of the

Subleased Premises received by Subtenant from Landlord or from any governmental

authority.  Sublandlord will forward to

Subtenant, immediately upon receipt thereof, copies of any notices relating to

the Subleased Premises or this Sublease from Landlord or from any governmental

authority.

 

4.5          Use

of Subleased Premises

 

Subtenant may only use the Subleased Premises for

general, non-governmental office purposes (including, without limitation,

financial services and/or a bank branch) and for no other use or purpose

whatsoever.  Subtenant shall not use the

Subleased Premises for any unlawful purpose or in any manner prohibited by the

Prime Lease.  Subtenant must obtain all

necessary governmental approvals related to its use or occupancy of the

Subleased Premises and any signage related thereto, including but not limited

to any approval needed from the International Special Review District.

 

6

 

If the Subleased Premises is closed for business to

the public for more than 180 consecutive days other than for repairs,

maintenance, or remodeling or force majeure, then Sublandlord shall have the

option thereafter, after any such 180-­day period of non-operation, of

recapturing the Subleased Premises and terminating this Lease.  If Sublandlord elects under such

circumstance to terminate this Sublease and recapture the Subleased Premises,

Sublandlord shall provide Subtenant with 30 days prior written notice of such

election.  Upon the expiration of 30

days from the date of such notice, this Sublease shall automatically terminate

and Subtenant shall be relieved of and from any and all liability or

obligations to Sublandlord except with respect to claims and causes of action

arising prior to the date of termination. 

Time is of the essence with respect to the provisions of this Section

4.5.

 

5.             Parking

 

Subtenant shall have the

right to use one (1) Regular Parking Stall per 1,000 square feet of Rentable

Area in the Subleased Premises in the manner and on the allocation and payment

terms described in the Parking Agreement attached hereto as Exhibit C.  Subtenant’s right shall be subject to the

terms of Section 17.8 of the Prime Lease, the Parking Agreement, and to

all rules and regulations imposed by the Garage Operator (as that term is

defined in the Prime Lease), including but not limited to the right of the Garage

Operator to impose and adjust hours and charges for parking.

 

6.             Acceptance of Premises; Alterations

 

6.1          Initial

Subtenant Improvements

 

Subtenant will build out

its initial improvements (“Subtenant’s Improvements”) at its sole cost in

accordance with all terms and conditions of the Prime Lease.  Sublandlord hereby assigns to Subtenant the

right to receive from Landlord a portion of its remaining Improvement Allowance

equal to $15.00 per square foot of Rentable Area in the Subleased Premises,

provided that such assignment may be immediately revoked if Subtenant is in

default under this Sublease.  Such

allowance will be applied to the cost of Subtenant Improvements and not to

fixtures, furniture, equipment or communications cabling and will be disbursed

by Landlord to Subtenant in accordance with the Prime Lease.  Subtenant, subject to Landlord’s rights

under the Prime Lease, will have the right to select the architect and/or

general contractor for the design and construction of Subtenant’s

Improvements.  Sublandlord will not

charge a plan review fee or any other fee to Subtenant for its involvement in

the design and construction process (other than amounts payable to Landlord

pursuant to Section 8.2 of the Prime Lease).  Subtenant will deliver to

Sublandlord copies of all drawings, materials, documents and submissions at the

same time as Subtenant delivers such items to Landlord in connection with the

design and construction of Subtenant’s Improvements.  Subtenant’s space plan and design documents will be subject to

Sublandlord’s approval, which will not be unreasonably withheld or conditioned

and which will be exercised within the time frames available to Landlord under

the Prime Lease.

 

7

 

6.2          As

Is

 

Subtenant hereby confirms that by taking possession of the Subleased

Premises, Subtenant accepts the Subleased Premises in their “AS IS”

condition.  Sublandlord makes no

warranty of any kind concerning the Subleased Premises, the Building or the

project of which they are a part, and Sublandlord expressly disclaims any

warranty concerning latent defects, any warranty of fitness for use, and any

other express or implied warranty (including any warranty of MERCHANTABILITY).

 

6.3          Special

Tenant Trade Fixtures

 

Sublandlord acknowledges and agrees that, in addition to Subtenant’s

other personal property, Subtenant intends to and shall install in and on the

Subleased Premises a bank vault, safe deposit boxes, an ATM machine, and night

deposit box, all of which shall at all times be and remain the property of

Subtenant and Subtenant may remove the same at Subtenant’s expense at any time

during the term and shall remove the same at Subtenant’s expense upon the

expiration or earlier termination of this Sublease.  Such removal will be subject to Section 16 of the Prime Lease.

 

7.             Holding Over

 

If Subtenant remains in possession of the Subleased Premises after

expiration of the Sublease Term, Sublandlord may be treated by Landlord as

being in breach of the Prime Lease. 

Sublandlord may be obligated to pay damages to Landlord, including

consequential damages which are presently difficult or impossible to

calculate.  Subtenant agrees to

indemnify, defend and hold harmless Sublandlord from any and all actions,

liabilities, damages, costs, penalties, losses or expenses that may arise out

of or be in any way connected with any holding over by Subtenant following the

expiration or earlier termination of the Sublease Term.

 

8.             Conditions Precedent

 

8.1           Subtenant

acknowledges that Sublandlord’s right to sublease the Subleased Premises is

subject to obtaining the prior written consent of Landlord and Original

Tenant.  If such consent is not obtained

in the form attached hereto as Exhibit D within thirty (30) days of the

date of this Sublease, then either party may, at its option, terminate this

Sublease by written notice given within ten (10) business days of the

expiration of the thirty (30) day period.

 

8.2           Sublandlord

acknowledges that Subtenant’s obligations under this Sublease are subject to

Landlord’s delivery of a recognition agreement substantially in the form

attached hereto as Exhibit E.  If such recognition agreement is not

obtained within thirty days after the date of this Sublease, then Subtenant

may, at its option, terminate this Sublease 

 

8

 

by written notice

given to Sublandlord within ten (10) days after expiration of such thirty (30)

day period.

 

8.3           If this Sublease is

terminated in accordance with Sections 8.1 or 8.2, Sublandlord will promptly

refund to Subtenant any Security Deposit paid to it by Subtenant.

 

9.             Notices

 

Any notice or demand which either party may or must give pursuant to or

in connection with this Sublease shall be in writing, delivered personally,

sent by prepaid courier, sent by first class mail, postage prepaid, registered

or certified, return receipt requested, or sent by facsimile transmission as

follows:

 

	

  If To Sublandlord:

  	

   

  	

  Amazon.com Holdings, Inc.

  1200 12th Ave. South, Suite 1200

  Seattle, Washington 98144

  Attn:  Director, Global Real Estate 

  Fax:(206) 266-1820

  
	

   

  	

   

  	

   

  
	

  with a copy to:

  	

   

  	

  Amazon.com Holdings, Inc.

  1200 12th Ave. South, Suite 1200

  Seattle, Washington 98144 

  Attn:  General Counsel

  Fax:(206) 266-7010

  
	

   

  	

   

  	

   

  
	

  Address for Rent Payments:

  	

   

  	

  Amazon.com Holdings, Inc. 

  1200 12th Ave. South, Suite 1200 

  Seattle, Washington 98144 

  Attn:  Global Property Manager 

  Fax: (206) 266-1820

  
	

   

  	

   

  	

   

  
	

  If To Subtenant:

  	

   

  	

  Pacifica Bancorp 

  10900 N.E. Fourth Street, Suite 1910

  Bellevue, Washington  98015-2748

  Attn:  Jeffery C. Low, President/CEO 

  Fax: (425) 637-0150

  

 

Either party may, by notice in writing, direct that future notices or

demands be sent to a different address that is not a post-office box.  Notices given by mail are deemed effective

three business days after deposit, postage prepaid, with the United States Post

Office.  Notices delivered by courier

are deemed effective on the next business day after deposit with the courier

for overnight (next day) delivery. 

Notices sent by facsimile or delivered personally are effective upon

receipt.

 

9

 

10.          Damage or Destruction

 

Notwithstanding anything to the contrary contained in this Sublease, in

the event any fire or other casualty renders the whole or any material part of the

Building untenantable, then in such event (i) if either Landlord or Sublandlord

exercises a right under the Prime Lease to terminate the Prime Lease, then this

Sublease shall terminate upon termination of the Prime Lease, and (ii) if

neither Landlord nor Sublandlord exercises a right to terminate the Prime

Lease, then this Sublease shall remain in full force and effect, and for so

long as any portion of the Subleased Premises are untenantable Basic Rent and

Subtenant’s Share of Operating Expenses shall abate  pro rata based upon the Rentable Area of the Subleased Premises

that is untenantable as compared to the total Rentable Area of the Subleased

Premises.  Notwithstanding the

foregoing, if Landlord exercises its right to terminate the Prime Lease, then

Sublandlord shall have the right at its election to terminate this Sublease and

shall have no obligation whatsoever to exercise its right under

Section 11.4 of the Prime Lease to avoid termination of the Prime Lease;

provided that, if Sublandlord elects to so avoid termination of the Prime

Lease, and if Subtenant pays Subtenant’s Share of the amount payable by

Sublandlord to Landlord in order to avoid termination, then Sublandlord will

not exercise its right to terminate this Sublease.

 

11.          Eminent Domain

 

In the event a Condemning Authority effects a Taking (as those terms

are defined in the Prime Lease) of all or a portion of the Leased Premises,

then in such event if either Landlord or Sublandlord exercises a right to

terminate the Prime Lease, then this Sublease shall terminate upon termination

of the Prime Lease.  If a portion of the

Subleased Premises are taken and this Sublease does not terminate, then Basic

Rent shall be adjusted based upon the formula set forth in Section 12.2 of

the Prime Lease as applied to the Subleased Premises, and Sublandlord shall

equitably adjust Subtenant’s Share of Operating Expenses to account for any

reduction in the Rentable Area in the Subleased Premises.

 

Subtenant waives and assigns to Sublandlord any interest it may have in

any damage, award or payment resulting from or paid on account of any

Taking.  Subtenant shall have the right

to recover from any Condemning Authority any compensation that may be

separately recoverable for damages to or condemnation of Subtenant’s movable

trade fixtures and equipment and for moving expenses.  Subtenant shall not have any right to receive any award for its

interest in this Sublease or for loss of leasehold.

 

12.          No Recording

 

Neither party shall record this Sublease or any memorandum of this

Sublease.

 

10

 

13.          Successors and Assigns

 

Subject to the limitations set forth in this Sublease, the covenants

and agreements in this Sublease shall bind and inure to the benefit of

Sublandlord, Subtenant and their respective successors and permitted assigns.

 

14.          Access/Inspection

 

Subtenant acknowledges and agrees to Landlord’s access rights reserved

under the Prime Lease and acknowledges and agrees that those rights apply to

the Subleased Premises and that Landlord has no obligation to give notice to

Subtenant of its intent to enter. 

Sublandlord shall make commercially reasonable efforts to advise

Subtenant promptly if and when Sublandlord receives notice that Landlord

intends to enter upon the Subleased Premises.

 

15.          Agents and Brokers

 

At the signing of this Agreement, Washington Partners represented

Sublandlord and Kidder Mathews & Segner represented Subtenant.  Each party signing this document confirms

that prior oral and/or written disclosure of agency was provided to him or her

in this transaction.  Sublandlord will

be responsible for payment of commissions or fees due to Washington Partners

(pursuant to an agreement that is not a part of this Sublease) and will pay a

commission of $5.00 per square foot of Rentable Area in the Subleased Premises

to Kidder Mathews & Segner if the following events occur: 50% of the

commission payable to Kidder Mathews & Segner will be due within 30 days

after Subtenant waives its early termination right set forth in Section 16.1

below and the remaining 50% will be due within 30 days after Subtenant’s

occupancy of the Subleased Premises. 

Each party represents to the other that it has engaged no other agent

broker or agent in connection with the negotiation leading to this agreement,

and shall hold the other harmless from any claim or demand from any other agent

or broker claiming to have acted on behalf of the indemnifying party in

connection with this Sublease.

 

16.          Special Provisions

 

16.1        Early

Termination Right

 

If Subtenant is unable to obtain regulatory approval from the Federal

Deposit Insurance Corporation (“FDIC”) for Pacifica Bank to establish an office

at the Subleased Premises, Subtenant may terminate this Sublease by (i) giving

Sublandlord and Landlord written notice within 60 days after execution of

Landlord’s Consent, together with documentation of FDIC’s disapproval, (ii)

paying Sublandlord (in immediately available funds) the equivalent of 2 months’

Basic Rent and Additional Rent, plus any portion of the Improvement Allowance

paid by Landlord or Sublandlord to or on behalf of Subtenant, and (iii)

restoring the Subleased Premises to the condition existing as of the date of

this Sublease 

 

11

 

(including without

limitation the removal of any Subtenant Improvements installed or

constructed).  If such notice and

payments are not received, or such restoration work is not completed, within

such 60-day period, Subtenant will be deemed to have waived this one-time right

of early termination.

 

16.2        FDIC

Requirement

 

Notwithstanding any other provisions contained in this Sublease, in the

event the depository institution then operating in the Subleased Premises is

closed or is taken over by any depository institution governmental supervisory

authority (an “Authority”), Sublandlord may terminate this Sublease, in the

absence of an Event of Default hereunder, only with the concurrence of the

receiver or liquidator appointed by such Authority.  If this Sublease is terminated by such receiver or liquidator,

Sublandlord’s maximum claim for lost rent resulting from the early termination,

rejection or abandonment of the unexpired Sublease Term by law shall in no

event exceed an amount equal to all accrued and unpaid Basic Rent and unpaid

Additional Rent through the date of termination (the parties acknowledging that

the foregoing limitation of liability will not limit or otherwise affect

Sublandlord’s claims with respect to any other obligation of Subtenant,

including without limitation, restoration of the Subleased Premises in

accordance with Section 16.1 of the Prime Lease).

 

17.          Entire Agreement

 

This Sublease represents the entire agreement of the Sublandlord and

Subtenant with respect to this subject matter and supersedes all prior oral and

written understandings and agreements of the parties, all of which are merged

within this Sublease.  This Sublease may

not be amended, modified, or supplemented in any manner other than by the

written agreement of the parties signed by the authorized representatives of

the parties.

 

18.          Exhibits

 

The following Exhibits attached to this Sublease are incorporated into

and made a part of it by this reference:

 

	

  EXHIBIT

  A

  	

   

  	

  Prime Lease

  
	

  EXHIBIT

  B

  	

   

  	

  Illustration of

  Subleased Premises

  
	

  EXHIBIT

  C

  	

   

  	

  Parking Agreement

  
	

  EXHIBIT

  D

  	

   

  	

  Landlord’s Consent

  
	

  EXHIBIT

  E

  	

   

  	

  Recognition Agreement

  
	

  EXHIBIT F

  	

   

  	

  Form of SNDA Agreement

  

 

12

 

Executed in duplicate as of the date first written above.

 

	

   

  	

  Sublandlord:

  
	

   

  	

   

  
	

   

  	

  AMAZON.COM HOLDINGS, INC.

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Julie Benezet

  
	

   

  	

  Name:

  	

  Julie Benezet

  
	

   

  	

  Title:

  	

  Vice President

  

 

	

   

  	

  Subtenant:

  
	

   

  	

   

  
	

   

  	

  PACIFICA BANCORP, INC.

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Jeffery C. Low

  
	

   

  	

  Name:

  	

  Jeffery C. Low

  
	

   

  	

  Title:

  	

  Chairman, President & Chief Executive Officer

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ John D. Huddleston

  
	

   

  	

  Name:

  	

  John D. Huddleston

  
	

   

  	

  Title:

  	

  Executive Vice President, Chief Financial Officer

  
	

   

  	

  and Chief Operating Officer

  

 

13

 

	

  STATE OF WASHINGTON

  	

  )

  	

   

  
	

   

  	

  )

  	

  ss.

  
	

  COUNTY OF                         

  	

  )

  	

   

  

 

On this 6th day of June, 2001, before me, the undersigned, a Notary

Public in and for the State of Washington, duly commissioned and sworn,

personally appeared Julie Benezet, to me known to be the person who signed as

Vice President of Amazon.com Holdings, Inc., the corporation that executed the

within and foregoing instrument, and acknowledged said instrument to be the

free and voluntary act and deed of said corporation for the uses and purposes

therein mentioned, and on oath stated that she was duly elected,

qualified and acting as said officer of the corporation, that she was

authorized to execute said instrument and that the seal affixed, if any, is the

corporate seal of said corporation.

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the

day and year first above written.

 

	

   

  	

  /s/ Joanna M Haught

  	

   

  
	

   

  	

  (Signature of Notary)

  
	

   

  	

   

  
	

   

  	

  Joanna M Haught

  	

   

  
	

   

  	

  (Print or stamp name of Notary)

  
	

   

  	

   

  
	

   

  	

  NOTARY PUBLIC in and for the State 

  
	

   

  	

  of Washington, residing at

  	

  4557 45th Ave. SW

  	

   

  
	

   

  	

  203, Seattle, WA 98116

  	

   

  
	

   

  	

  My appointment expires:

  	

  3-9-03

  	

   

  
							

 

14

 

	

  STATE OF

  	

  Washington

  	

   

  	

  )

  
	

   

  	

  ).

  	

  ss

  
	

  COUNTY OF

  	

  King

  	

   

  	

  )

  
						

 

On this 7th day of June, 2001, before me, the undersigned, a Notary

Public in and for the State of Washington, duly commissioned and sworn,

personally appeared Jeffery C. Low and John D. Huddleston, to me known to be

the person who signed as Chairman, President/CEO and SVP/CFO, respectively of

Pacifica Bancorp, Inc., the corporation that executed the within and foregoing

instrument, and acknowledged said instrument to be the free and voluntary act

and deed of said corporation for the uses and purposes therein mentioned, and

on oath stated that they are duly elected, qualified and acting as said officer

of the corporation, that they are authorized to execute said instrument and

that the seal affixed, if any, is the corporate seal of said corporation.

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the

day and year first above written.

 

	

   

  	

  /s/ Paul F. Farris

  	

   

  
	

   

  	

  (Signature of Notary)

  
	

   

  	

   

  
	

   

  	

  Paul F. Farris

  	

   

  
	

   

  	

  (Print or stamp name of Notary)

  
	

   

  	

   

  
	

   

  	

  NOTARY PUBLIC in and for the State

  
	

   

  	

  of Washington, residing at

  	

  Kirkland

  	

   

  
	

   

  	

  My appointment expires: 

  	

  5-12-02

  	

   

  

 

15

 

EXHIBIT

A

to

SUBLEASE

 

PRIME

LEASE

 

16

 

EXHIBIT

B

to

SUBLEASE

 

FLOOR PLANS SHOWING SUBLEASED

PREMISES

 

17

EXHIBIT

C

to

SUBLEASE

 

PARKING AGREEMENT

 

18

 

EXHIBIT

D

to

SUBLEASE

 

LANDLORD’S CONSENT

 

The undersigned, Landlord under the Prime Lease (as defined in the

foregoing Sublease Agreement dated as of June 6, 2001, by and between

Amazon.com Holdings, Inc. and Pacifica Bancorp, Inc.), hereby consents, as

contemplated in Article 13 of such Prime Lease, to the foregoing Sublease on

the express condition that nothing in this consent is intended to relieve,

release, discharge or otherwise affect the liability of  Sublandlord or Original Tenant from the

performance of their respective obligations to Landlord under the Prime Lease

and they shall  remain fully liable

under the Prime Lease to perform all of the obligations of the “Tenant” under

the Prime Lease. This Consent shall apply only to this Sublease and shall not

be deemed to be either (a) a consent to any other sublease, assignment or other

Transfer (as defined in the Prime Lease) of any interest in any of the Premises

leased to Sublandlord under the Prime Lease or (b) a release from or

waiver of the obligation to obtain Landlord’s consent in the event of any

future sublease or assignment or other Transfer of any interest in any of the

Premises leased to Sublandlord under the Prime Lease.

 

This consent, together with the Recognition Agreement attached to the

Sublease as Exhibit B, represents the entire agreement of Landlord with respect

to the Sublease and shall be binding upon and inure to the benefit of

Subtenant, Sublandlord, Original Tenant, and Landlord and their respective

successors and assigns.

 

Nothing in this Consent or the Sublease shall be deemed to obligate

Landlord to perform any obligations under the Prime Lease for the benefit of

Subtenant. This Consent is issued on the understanding that nothing contained

in the Sublease or this Consent and no direct relationship between Landlord and

Subtenant including, without limitation, the provisions of Section 4.3 of the

Sublease, shall modify, expand or enlarge Landlord’s obligations under the

Prime Lease nor release Sublandlord or Original Tenant from any of their obligations

thereunder.

 

Dated this 6th day of July, 2001.

 

	

   

  	

  SEATTLE UNION STATION II, LLC,

  
	

   

  	

   

  
	

   

  	

  a Washington limited liability company

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Joseph D. Weinstein

  	

   

  
	

   

  	

   

  	

   

  	

  Assistant Secretary of MIG Corporation

  	

   

  
	

  Its 

  	

   

  	

  Manager

  	

   

  
							

 

19

 

ORIGINAL TENANT’S CONSENT AND ACKNOWLEDGMENT

 

Original Tenant

hereby consents to the foregoing Sublease and ratifies and affirms that

Original Tenant remains liable under the Prime Lease as a principal and not as

a surety notwithstanding execution of the foregoing Sublease or any course of

conduct or dealings between Subtenant and Tenant and nothing contained herein

and no such course of conduct or dealings shall relieve, release, discharge or

otherwise affect the liability of Original Tenant for the performance of

Sublandlord’s and Original Tenant’s obligations to Landlord under the Prime

Lease.

 

Agreed to and

accepted this 6th day of June, 2001.

 

	

   

  	

  AMAZON.COM, INC.

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/

  	

  Julie Benezet

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  	

  Julie Benezet

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title:

  	

  Vice President

  	

   

  
								

 

20

 

EXHIBIT E

 

RECOGNITION AGREEMENT

 

This RECOGNITION AGREEMENT (the “Agreement”) is entered into as of the

7th day of June, 2001, by and between SEATTLE UNION STATION II, LLC (“Landlord”),

AMAZON.COM HOLDINGS, INC. (“Amazon”) and PACIFICA BANCORP, INC. (“Subtenant”)

with respect to the following:

 

A.            Landlord, as

successor to Opus Union Station, L.L.C., and Amazon, as successor to

Amazon.com, Inc. (“Original Tenant”), are parties to that certain Multi-Tenant

Office Lease Agreement dated as of August 23, 1999 and that certain Amendment 1

to Multi-Tenant Office Lease Agreement dated as of May 21, 2001, (as amended

from time to time, the “Prime Lease”).

 

B.            Subtenant wishes to

sublease from Amazon a portion of the premises (the “Subleased Premises”) under

the Prime Lease pursuant to the terms of that certain Sublease Agreement dated

as June 6, 2001, by and between Amazon and Subtenant (the “Sublease”).  Subtenant has asked the Landlord to

recognize Subtenant’s right to continue to occupy the Subleased Premises in the

event the Prime Lease terminates for any reason other than a default by

Subtenant under the Sublease.

 

C.            Landlord has

consented to the Sublease provided that Subtenant and Amazon enter into this

Agreement.  Capitalized terms used

herein and not otherwise defined shall have the meanings given in the Sublease.

 

NOW, THEREFORE, For good and valuable consideration,

the receipt and sufficiency of which are hereby acknowledged, the parties

hereto agree as follows:

 

1.             Default

Under Prime Lease.  At

Landlord’s option, if Amazon is in default under the Prime Lease, Landlord may

send notice of such default to Subtenant and thereafter Subtenant shall pay

rent and all other sums due under the Sublease directly to Landlord.  If Subtenant pays all sums due under the

Sublease directly to Landlord such payment shall satisfy Subtenant’s

obligations to Amazon under the Sublease and Landlord shall apply the sums so

received against Amazon’s obligations under the Prime Lease.

 

2.             Termination

of Prime Lease. 

Provided that (a) the Sublease is then in full force and effect; and (b)

Subtenant is not then in default under the Sublease beyond any applicable grace

or cure periods provided in the Sublease, Landlord will not seek to terminate

or extinguish the Sublease in any action or proceeding to terminate the Prime

Lease.

 

21

 

3.             New

Lease. Provided that (a) the Sublease is then in full force

and effect; and (b) Subtenant is not then in default under the Sublease beyond

any applicable grace or cure periods provided in the Sublease, if the Prime

Lease is terminated for any reason (including without limitation a default of

Sublandlord under the Prime Lease or an election to terminate by Sublandlord

pursuant to Article 11 or 12 of the Prime Lease, but excluding an election to

terminate by the Landlord pursuant to Article 11 or 12 of the Prime Lease),

then Subtenant and Landlord shall be deemed automatically, without the

execution of any further instruments on the part of any of the parties hereto,

and by the fact of termination of the Prime Lease to have entered into a new

lease with respect to the Subleased Premises for the balance of the initial

term of the Sublease on all of the terms, covenants and conditions of the

Sublease (except as otherwise provided in Section 4 below).  Subtenant shall recognize Landlord as its

landlord and Landlord shall recognize Subtenant as its tenant and each shall be

bound under all of the terms, covenants and conditions of the Sublease (except

as otherwise provided in Section 4 below) as if Landlord were the

sublandlord thereunder for the balance of the initial term thereof.  Notwithstanding the termination of the Prime

Lease, the terms of the Prime Lease shall remain in full force and effect to

the extent they are incorporated into the terms of the Sublease.

 

4.             Terms

of New Lease. The terms of

the Sublease shall remain unchanged as a direct lease (the “Lease”) between

Landlord and Subtenant except that:

 

(a)           Subtenant shall

provide Landlord with a security deposit equal to Thirty-Two Thousand Dollars

($32,000.000) plus any additional sums Landlord may reasonably require to

secure Subtenant’s obligation to remove any vault approved by Landlord and

installed by Subtenant in the Subleased Premises (together, the “Security

Deposit”) within ten (10) days after receipt of notice from Landlord that the

Prime Lease has terminated. Failure to pay the Security Deposit in a timely

manner shall be deemed to be an event of default under the Lease without

further notice or opportunity to cure and Landlord may exercise any rights or

remedies available under the Lease or at law or in equity with respect to such

default. The Security Deposit shall be held by Landlord without liability for

interest as security for the performance by Subtenant of Subtenant’s

obligations under the Lease.  Upon the

occurrence of any Event of Default (as defined in the Prime Lease and

incorporated into the Sublease by reference) by Subtenant, Landlord may, from

time to time, without prejudice to any other remedy, use the Security Deposit

to the extent necessary to pay any arrearages of Basic Rent or Additional Rent,

to pay any amount which Landlord may spend or become obligated to spend by

reason of such Event of Default or to compensate Landlord for any other loss,

damage or liability which Landlord may suffer by reason of such Event of

Default.  Following any such application

of the Security Deposit, Subtenant shall pay to Landlord on demand the amount

so applied in order to restore the Security Deposit to its original

amount.  Provided there exists no Event

of Default under the Lease, any remaining balance of the Security Deposit shall

be returned by Landlord to Subtenant upon expiration or earlier termination of

the Lease (or any extension or renewal thereof).  If Landlord transfers its interest in the Subleased Premises

during the term of the Lease, 

 

22

 

Landlord may assign

the Security Deposit to the transferee and thereafter shall have no further

liability for the return of the Security Deposit.

 

(b)           Landlord shall have

no obligation to pay any Allowance to Subtenant under Section 8.1 of the

Sublease or to construct any improvements in the Subleased Premises.

 

(c)           The following terms of the Prime Lease

shall be incorporated into the terms of the Lease between Landlord and

Subtenant with the same force and effect as if set forth in full in the

Sublease: Sections 9.2, 9.5.2(a), 15.2 and 15.3.

 

(d)           Subtenant shall have no right to

lease the Subleased Premises or to extend the term of the Sublease beyond the

initial term of the Prime Lease; provided, however, Landlord will

negotiate in good faith with Subtenant for a new lease for a five (5) year

extended term provided that (i) such lease shall be on Landlord’s then-current

lease form and (ii) rent payable during any extended term shall be equal to the

greater of (a) the fair market rent applicable to such term, and (b) the base

rent in effect on the last day of the Sublease. “Fair market rent” shall be

determined in accordance with the terms of Schedule 1 attached hereto.

Subtenant must give Landlord notice that it wishes to negotiate an extension of

the Lease not more than 270 and not less than 180 days prior to the date the

Lease is scheduled to expire or Subtenant’s rights under this Section 4(d)

shall expire and be of no further force and effect.

 

(e)           The Lease and all rights of  Subtenant under the Lease, and all interest

of  Subtenant in the Subleased Premises,

shall be subject and subordinate to the lien of any Mortgage which at any time

may be placed upon all or any portion of the Building by Landlord.  For the purposes of the Lease, the term

“Mortgage” means any mortgage, deed of trust, sale and leaseback used for

financing purposes, or other security instrument; any replacements, renewals,

amendments, modifications, extensions or refinancings thereof; and each and

every advance made under any Mortgage. 

For the purposes of the Lease, the term “Mortgagee” means the beneficial

owner of any encumbrance created by a Mortgage and, in the case of a sale and

leaseback, the leaseback lessor.  In

order to confirm such subordination, Subtenant agrees at any time, and from

time to time on demand of Landlord, to execute and deliver to Landlord any

instruments, releases or other documents that may be reasonably required for

the purpose of confirming the subordination, including an instrument in the

form of presented by the Mortgagee.  So

long as Subtenant is not in default in the performance of any of Subtenant’s

obligations under the Lease, such subordination shall not interfere with

Subtenant’s right to quiet enjoyment under the Lease.

 

(f)            Article 11 of the Prime Lease shall

not be incorporated into the Lease by reference and shall be replaced with the

Article 11 attached hereto as Schedule 2. 

In addition, the Landlord shall not be bound by the second paragraph of

Section 4.3 of the Sublease.

 

23

 

5.             Limitations.  Notwithstanding anything herein or in the

Sublease to the contrary, Landlord shall not be: (a) liable for any act or

omission of Amazon or any prior landlord under the Sublease or obligated to pay

any broker’s commission pursuant to Section 15 of the Sublease; (b) liable for

the return of any security deposit which Subtenant has paid to Amazon or any

prior landlord under the Sublease; (c) subject to any offsets or defenses which

Subtenant might have against Amazon or any prior landlord under the Sublease;

(d) bound by any payments of rent or any other payments which Subtenant might

have paid to Amazon or any prior landlord under the Sublease; (e) bound by any

amendment or modification of the Sublease made without Landlord’s prior written

consent; (f) bound by any consent by Amazon or any landlord under the Sublease

to any assignment or sublease of Subtenant’s interest in the Sublease made

without Landlord’s prior written consent, or (g) liable for any default under

the Sublease or any covenant or obligation on the part of Amazon to be

performed thereunder as sublandlord, it being acknowledged that Subtenant’s

sole remedy in the event of such default shall be to proceed against Amazon.

 

6.             Further

Documentation. 

Although entry into the new lease shall be automatic as set forth in

Section 3 of this Agreement, upon Landlord’s request, upon termination of the

Prime Lease, Tenant shall for purposes of confirmation only, execute and

deliver an instrument acknowledging and confirming the terms of the new Lease

between Subtenant and Landlord.  Failure

by Subtenant to execute and deliver such documentation within twenty (20) days

after written request, shall be deemed to be an event of default under the

Sublease without further notice or opportunity to cure and Landlord may

exercise any rights or remedies available under the Sublease or at law or in

equity with respect to such default.

 

7.             Notices.

Any notice or demand which either party may or must give pursuant to or in

connection with this Sublease shall be in writing, delivered personally, sent

by prepaid courier, or sent by first class mail, postage prepaid, registered or

certified, return receipt requested, as follows:

 

	

  If to Sublandlord:

  	

   

  	

  Amazon.com Holdings, Inc.

  1200 12th Ave. South, Suite 1200

  Seattle, Washington 98144

  Attn: Director, Global Real Estate

  
	

   

  	

   

  	

   

  
	

  with a copy to:

  	

   

  	

  Amazon.com Holdings, Inc.

  1200 12th Ave. South, Suite 1200

  Seattle, Washington 98144

  Attn:  General Counsel

  
	

   

  	

   

  	

   

  
	

  If to Subtenant:

  	

   

  	

  (At the Subleased Premises)

  Attn:  President/CEO

  

 

24

 

	

  If to Landlord:

  	

   

  	

  Seattle Union Station

  II LLC

  c/o MIG Corporation

  1200 Westlake Ave. N., Suite 1000

  Seattle, WA  98109

  Attn:  Debra Stroh

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  with a copy to:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  CenturyPacific, L.P.

  1501 Fourth Avenue

  Seattle, WA 98101

  Attn: Steven Wood

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  with a copy to:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Davis Wright Tremaine LLP

  2600 Century Square

  1501 Fourth Avenue

  Seattle, Washington  98101-1688

  Attn:  Joseph D. Weinstein

  

 

Any party may, by notice in writing, direct that future notices or

demands be sent to a different address that is not a post-office box.  Notices given by mail are deemed effective

three business days after deposit, postage prepaid, with the United States Post

Office.  Notices delivered by courier

are deemed effective on the next business day after deposit with the courier

for overnight (next day) delivery.

 

8.             General.  This

is the entire agreement of the parties with respect to the subject matter

hereof.  This Agreement may be modified

only in writing signed by both parties. 

The invalidity or unenforceability of any term or provision hereof shall

not affect the validity or enforceability of any other term or provision

hereof.  Any waiver hereunder must be in

writing.  Any waiver of any right or

remedy hereunder with respect to any default shall not constitute a waiver of

the same or any other right or remedy with respect to any other default

hereunder.  This agreement is for the

benefit only of the parties hereto and shall inure to the benefit of and bind

the heirs, personal representatives, successors and assigns of the parties

hereto, subject however to applicable limiting provisions in the Prime Lease or

the Sublease.  In any suit, action or

appeal therefrom to enforce or interpret this Agreement, the prevailing party

shall be entitled to recover its costs and expenses incurred therein, including

reasonable attorneys’ fees and other costs of litigation.  This Agreement may be executed and delivered

in counterparts, each of which shall be deemed as an original and all of which

shall constitute one and the same agreement. 

After execution, this Agreement may be delivered by facsimile.

 

25

 

	

   

  	

  LANDLORD:

  
	

   

  	

   

  
	

   

  	

  SEATTLE UNION STATION II, LLC,

  a Washington limited liability company

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Joseph D. Weinstein

  	

   

  
	

   

  	

   

  	

   

  	

  Assistant Secretary of MIG Corporation

  	

   

  
	

  Its 

  	

   

  	

   

  	

  Manager

  	

   

  
							

 

	

   

  	

  AMAZON:

  
	

   

  	

   

  
	

   

  	

  AMAZON.COM HOLDINGS, INC.

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Julie Benezet 

  	

   

  
	

   

  	

   

  	

   

  	

  Name:

  	

  Julie Benezet

  	

   

  
	

   

  	

   

  	

   

  	

  Title:

  	

  Vice President

  	

   

  

 

	

   

  	

  SUBTENANT:

  
	

   

  	

   

  
	

   

  	

  PACIFICA BANCORP, INC.

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Jeffery C. Low 

  	

   

  
	

   

  	

   

  	

   

  	

  Name:

  	

  Jeffery C. Low

  	

   

  
	

   

  	

   

  	

   

  	

  Title:

  	

  Chairman, President & CEO

  	

   

  

 

	

   

  	

  ORIGINAL

  TENANT

  
	

   

  	

   

  
	

   

  	

  AMAZON.COM, INC.

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Julie Benezet

  	

   

  
	

   

  	

   

  	

   

  	

  Name:

  	

  Julie Benezet

  	

   

  
	

   

  	

   

  	

   

  	

  Title:

  	

  Vice President

  	

   

  

 

26

 

	

  STATE OF WASHINGTON

  	

   

  	

  )

  
	

   

  	

  )

  	

  ss.

  
	

  COUNTY OF KING

  	

   

  	

  )

  

 

On this 6th day of March, 2002, before me, a Notary Public in and for

the State of Washington, personally appeared Joseph Weinstein, personally known

to me (or proved to me on the basis of satisfactory evidence) to be the person

who executed this instrument, on oath stated that she/he was authorized to

execute the instrument, and acknowledged it as the Assistant Secretary of MIG

Corporation, the manager of SEATTLE UNION STATION II, LLC,  to be the free and voluntary

act and deed of said limited liability company for the uses and purposes

mentioned in the instrument.

 

IN WITNESS WHEREOF, I have hereunto set my hand and official seal the

day and year first above written.

 

	

   

  	

  /s/ Lisa Peterson

  	

   

  
	

   

  	

   

  
	

   

  	

  NOTARY PUBLIC in and for the State of Washington,

  
	

   

  	

  residing at

  	

  Seattle

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  My appointment expires

  	

  12/9/2001

  	

   

  
	

   

  	

   

  
	

   

  	

  Print Name

  	

  Lisa Peterson

  	

   

  
								

 

	

  STATE OF WASHINGTON

  	

   

  	

  )

  
	

   

  	

  )

  	

  ss.

  
	

  COUNTY OF KING

  	

   

  	

  )

  

 

On this 6th day of June, 2001, before me, the undersigned, a Notary

Public in and for the State of Washington, duly commissioned and sworn,

personally appeared Julie Benezet, to me known to be the person who signed as

Vice President of Amazon.com Holdings, Inc., the corporation that executed the

within and foregoing instrument, and acknowledged said instrument to be the

free and voluntary act and deed of said corporation for the uses and purposes

therein mentioned, and on oath stated that she was duly elected, qualified and acting

as said officer of the corporation, that she was authorized to execute said

instrument and that the seal affixed, if any, is the corporate seal of said

corporation.

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the

day and year first above written.

 

	

   

  	

  /s/ Joanna M. Haught

  	

   

  
	

   

  	

  (Signature of Notary)

  
	

   

  	

  Joanna M. Haught

  	

   

  
	

   

  	

  (Print or stamp

  name of Notary)

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  NOTARY PUBLIC in and for the State of Washington,

  
	

   

  	

  residing at 4557 45th Ave. SW 203, Seattle, WA 98116

  	

   

  
	

   

  	

  My appointment expires:

  	

   

  	

  3-9-03

  	

   

  
								

 

27

 

	

  STATE OF WASHINGTON

  	

   

  	

  )

  
	

   

  	

  )

  	

  ss.

  
	

  COUNTY OF KING

  	

   

  	

  )

  

 

On this 6th day of June, 2001, before me, the undersigned, a Notary

Public in and for the State of Washington, duly commissioned and sworn,

personally appeared Julie Benezet, to me known to be the person who signed as

Vice President of Amazon.com, Inc., the corporation that executed the within

and foregoing instrument, and acknowledged said instrument to be the free and

voluntary act and deed of said corporation for the uses and purposes therein

mentioned, and on oath stated that she was duly elected, qualified and acting

as said officer of the corporation, that she was authorized to execute said

instrument and that the seal affixed, if any, is the corporate seal of said

corporation.

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the

day and year first above written.

 

	

   

  	

  /s/ Joanna M. Haught

  	

   

  
	

   

  	

  (Signature of Notary)

  
	

   

  	

  Joanna M. Haught

  	

   

  
	

   

  	

  (Print or stamp

  name of Notary)

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  NOTARY PUBLIC in and for the State of Washington,

  
	

   

  	

  residing at 4557 45th Ave. SW 203, Seattle, WA 98116

  	

   

  
	

   

  	

  My appointment expires:  3-9-03

  	

   

  
							

 

 

	

  STATE OF WASHINGTON

  	

   

  	

  )

  
	

   

  	

  )

  	

  ss.

  
	

  COUNTY OF KING

  	

   

  	

  )

  

 

On this 7th day of June, 2001, before me, the undersigned, a Notary

Public in and for the State of Washginton, duly commissioned and sworn,

personally appeared Jeffery C. Low, to me known to be the person who signed as

Chairman/President/CEO of Pacifica Bancorp, Inc., the corporation that executed

the within and foregoing instrument, and acknowledged said instrument to be the

free and voluntary act and deed of said corporation for the uses and purposes

therein mentioned, and on oath stated that he was duly elected, qualified and

acting as said officer of the corporation, that he was authorized to execute

said instrument and that the seal affixed, if any, is the corporate seal of

said corporation.

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the

day and year first above written.

 

	

   

  	

  /s/ Paul F. Farris

  	

   

  	 

	

   

  	

  (Signature of Notary)

  	 

	

   

  	

  Paul F. Farris

  	

   

  	 

	

   

  	

  (Print or stamp

  name of Notary)

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  NOTARY PUBLIC in and for the State

  	 

	

   

  	

  of Washington, residing at

  	

  Kirkland

  	

   

  	 

	

   

  	

  My appointment expires:  May 12, 2002

  
								

 

28

 

SCHEDULE 1

TO

RECOGNITION

AGREEMENT

 

A.            Renewal Term Basic Rent.

 

Fair Market Rent

Landlord will give Tenant notice of Landlord’s estimation of Fair Market Rent

within 10 days after receiving Tenant’s notice exercising its option to

renew.  If Tenant disagrees with such

estimate, it will notify Landlord in writing thereof within 10 days of Tenant’s

receipt of its notice.  If Tenant fails

to notify Landlord that it disagrees with the estimation within said 10-day period,

Tenant will be deemed to have agreed to the Fair Market Rent proposed by

Landlord.  If there is a disagreement on

such estimation, the parties will promptly meet to attempt to resolve their

differences.  If the differences as to

Fair Market Rent are not resolved within 25 days of the date Tenant receives

the Landlord’s initial estimate of Fair Market Rent, then the parties will

submit the matter to appraisal in accordance with the terms hereof so that Fair

Market Rent is determined before the first day of the Renewal Term.  If the Fair Market Rent for a Renewal Term

is not determined before the first day of the Renewal Term, Tenant will

continue to pay Basic Rent in the amount payable during the immediately

preceding period until the Basic Rent for the Renewal Term is determined.  Within 10 business days after the Basic Rent

for the Renewal Term has been determined, Tenant will pay to the Landlord the

excess, if any, of the Basic Rent due at the rate set by the appraiser(s) over

the Basic Rent actually paid during any expired portion of the Renewal Term.

 

B.            Appraisal Procedure.

 

If the parties are to submit any matter to appraisal pursuant to the

terms of this Lease, either Landlord or Tenant (the “Moving Party”) may give

notice to the other demanding appraisal and naming an appraiser.  The recipient of such notice (the

“Recipient”) will, within 10 days after receiving the Moving Party’s notice,

give notice to the Moving Party naming an appraiser selected by the

Recipient.  Each appraiser will be a

member of the American Institute of Appraisers and will have not less than 10

years’ experience in the appraisal of properties like the Property in the

Seattle metropolitan area.  If the

Recipient fails to notify the Moving Party of the name of the appraisal company

it has selected within said 10-day period, the appraisal company selected by

the Moving Party will determine the matter submitted.  The appraiser(s) will render a determination in writing to

Landlord and Tenant simultaneously within 10 days of their appointment.  Any determination in which the appraiser

appointed by Landlord and the appraiser appointed by Tenant concur will be

binding and conclusive upon the parties.

 

29

 

If the two appraisers are unable to determine the matter within 20 days

after appointment of the second appraiser, they will appoint a third appraiser,

who must be an impartial person with qualifications similar to those required

of the first two appraisers.  If the

initial two appraisers are unable to agree upon such appointment within 5 days

after expiration of the 20-day period, the third appraiser will be selected by

the parties themselves, if they can agree, within a further period of 10

days.  If the parties do not so agree,

then either party, on behalf of both, may request appointment of such a

qualified person by the then presiding judge of the King County Superior Court

acting in his private non-judicial capacity. 

The other party will not raise any question as to such Judge’s full

power and jurisdiction to entertain the application for and make the

appointment.  If the matter cannot be

determined by agreement between the two appraisers selected by Landlord and

Tenant, or settlement between the parties during the course of appraisal, then

it will be determined by the three appraisers in accordance with the following

procedure.  Each of the two appraisers

originally selected by the parties will prepare a written statement of his

determination, supported by the reasons therefor, with counterpart copies for

each party and the third appraiser.  The

appraisers must arrange for a simultaneous exchange of their written

statements.  The role of the third

appraiser will be to select which of the two proposed determinations most

closely approximates his determination on the matter.  The third appraiser will have no right to propose a middle ground

or any modification of either of the two determinations.  The appraisers will attempt to determine the

matter within 10 days after the appointment of the third appraiser.  The determination chosen by the third

appraiser will constitute the determination of the appraisers and be final and

binding upon the parties.

 

In the event of a failure, refusal or inability of any appraiser to

act, his successor will be appointed by him, but in the case of the third

appraiser, his successor will be appointed in the manner described above for

appointment of the third appraiser.  The

appraisers will have the right to consult experts and competent authorities

with factual information or evidence pertaining to a determination on the

matter, but any such consultation will be made in the presence of both parties

with full right on their part to cross-examine.  The appraiser(s) will render the determination on the matter in

writing, with counterpart copies to each party.  The appraisers will have no power to modify the provisions of

this Lease.  Each party will pay the

fees and expenses of its respective appraiser and both will share equally the

fees and expenses of the third appraiser, if any.  Each party will pay the attorneys’ fees and expenses of its

counsel and the fees and expenses of any witnesses called by that party.  Time is of the essence in connection with

any matter submitted to appraisal pursuant to this provision.

 

“Comparable

Space” means a comparable amount of space (considering the

standard of measurement by which square footage is measured) in comparable

condition (i.e., shell or second generation) on a comparable floor and with a

comparable view located in a building of comparable age and construction, with

a comparable number of floors, a floor plate of comparable size and

configuration and offering comparable services and amenities.

 

30

 

“Fair

Market Rent” means the annual amount per square foot that a

willing tenant would pay and a willing landlord would accept, in an arms-length

lease for Comparable Space for a comparable period of time, giving

consideration to the financial capability of the tenants, the amount of square

feet being leased, the rent rates per square foot, the standard of measurement

by which square footage is measured, the type and extent of liability under any

escalation clauses, the approximate amount of operating expenses to be paid by

the tenant, the amenities and services provided, any rent concessions and all

other applicable conditions of tenancy.

 

“Relevant

Market” means the area bounded by the Fremont/Wallingford

Districts to the north, South Royal Brougham Way to the south, Interstate 5 to

the east and Puget Sound to the west.

 

31

 

SCHEDULE

2

TO

RECOGNITION

AGREEMENT

 

ARTICLE 11 — DAMAGE OR DESTRUCTION

 

11.1.  Tenantable

Within 180 Days.  Except as provided

in Section 11.3, if fire or other casualty renders the whole or any material

part of the Premises untenantable and Landlord determines (in Landlord’s

reasonable discretion) that it can make the Premises tenantable within 180 days

after the date of the casualty, then Landlord will notify Tenant that Landlord

will repair and restore the Building and the Premises to as near their

condition prior to the casualty as is reasonably possible within the 180 day

period (subject to delays caused by Tenant or Force Majeure).  Landlord will provide the notice within 60

days after the date of the casualty.  In

such case, the Lease shall remain in full force and effect, but Basic Rent and

Tenant’s Share of Operating Expenses for the period during which the Premises

are untenantable shall abate pro rata (based upon the Rentable Area of the untenantable

portion of the Premises as compared with the Rentable Area of the entire

Premises).

 

11.2.  Not

Tenantable Within 180 Days.  If fire

or other casualty renders the whole or any material part of the Premises

untenantable and Landlord determines (in Landlord’s reasonable discretion) that

it cannot make the Premises tenantable within 180 days after the date of the

casualty, then Landlord will so notify Tenant within 60 days after the date of

the casualty and may, in such notice, terminate this Lease effective on the

date of Landlord’s notice.  If Landlord

does not terminate this Lease as provided in this Section, Tenant may terminate

this Lease by notifying Landlord within 30 days after the date of Landlord’s notice,

which termination will be effective 30 days after the date of Tenant’s notice.

 

11.3.  Building

Substantially Damaged. 

Notwithstanding the terms and conditions of Section 11.1, if the

Building is damaged or destroyed by fire or other casualty (regardless whether

the Premises is affected) and the damage reduces the value of the improvements

on the Property by more than 50% (as Landlord reasonably determines value

before and after the casualty), regardless whether Landlord determines (in

Landlord’s reasonable discretion) that it can make the Building tenantable

within 180 days after the date of the casualty, then Landlord, at Landlord’s

option, by notifying Tenant within 60 days after the casualty, may terminate

this Lease effective on the date of Landlord’s notice.

 

11.4.  Insufficient Proceeds. 

Notwithstanding any contrary language in this Article 11, if this

Article 11 obligates Landlord to repair damage to the Premises or Building

caused 

 

32

 

by fire or other casualty and Landlord does not receive sufficient

insurance proceeds to make the repair, or if Landlord’s lender does not allow

Landlord to use sufficient proceeds to make the repair, then Landlord, at

Landlord’s option, may terminate this Lease effective on the date of Landlord’s

notice.

 

11.5.  Landlord’s

Repair Obligations.  If this Lease

is not terminated under Sections 11.2 through 11.4 following a fire or other

casualty, then Landlord will repair and restore the Premises and the Building

to as near their condition prior to the fire or other casualty as is reasonably

possible and Basic Rent and Tenant’s Share of Operating Expenses for the period

during which the Premises are untenantable will abate pro rata (based upon the

Rentable Area of the untenantable portion of the Premises as compared with the

Rentable Area of the entire Premises). 

In no event is Landlord obligated to repair or restore any Alterations

or Tenant’s Improvements, any special equipment or improvements installed by

Tenant, any personal property, or any other property of Tenant and Tenant shall

repair and restore all such items at its expense.  Landlord will, if necessary, equitably adjust Tenant’s Share of

Operating Expenses Percentage to account for any reduction in the Rentable Area

of the Premises or Building resulting from a casualty.

 

11.6.  Rent

Apportionment.  If either Landlord

or Tenant terminates this Lease under this Article 11, Landlord will apportion

Basic Rent and Tenant’s Share of Operating Expenses on a per diem basis and

Tenant will pay Basic Rent and Tenant’s Share of Operating Expenses to either

(a) the date of the fire or other casualty if the event renders the Premises

completely untenantable, or (b) if the event does not render the Premises

completely untenantable, the effective date of such termination (provided that

if a portion of the Premises is rendered untenantable, but the remaining

portion is tenantable, then, Tenant’s obligation to pay Basic Rent and Tenant’s

Share of Operating Expenses shall abate as set forth above from the date of the

casualty and Tenant will pay the unabated portion of the Basic Rent to the date

of such termination).

 

11.7.  Exclusive

Casualty Remedy.  The provisions of

this Article 11 are Tenant’s sole and exclusive rights and remedies in the

event of a casualty.  To the extent

permitted by the Laws, Tenant waives the benefits of any Law that provides

Tenant any abatement or termination rights (by virtue of a casualty) not

specifically described in this Article 11.

 

33

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