Document:

Exhibit 10.9

 

	

  CALIFORNIA

  	

   

  	

   

  
	

  ASSOCIATION

  	

   

  	

  COMMERCIAL LEASE AGREEMENT

  
	

  OF REALTORSÒ

  	

   

  	

  (C.A.R Form CL, Revised 10/01)

  

 

Date (For reference only): May 1, 2002

 

Cliff Branch (“Landlord”)

and Mission Community Bank (“Tenant”) agree as follows:

 

1.   PROPERTY: Landlord

rents to Tenant and Tenant rents from Landlord, the real property and

improvements described as: 671 Tefft Street Suite 4, Nipomo, CA

(“Premises”), which comprise approximately  

N/A% of the total square footage of rentable space in the entire

property.  See exhibit   N/A   for a further description of the Premises.

2.   TERM:  The term shall be for  5  years and   0  months, beginning on (date) June 1, 2002  (“Commencement Date”), (Check A or B):

ý  A. Lease:

and shall terminate on (date) May 31, 2007 at 6:00 PM.

Any holding over after the

term of this agreement expires, with Landlord’s consent, shall create a

month-to-month tenancy that either party may terminate as specified in

paragraph 2B.  Rent shall be at a rate

equal to the rent for the immediately preceding month, payable in advance.  All other terms and conditions of this

agreement shall remain in full force and effect.

o  B. Month-to-month:  and continues as a month-to-month

tenancy.  Either party may terminate the

tenancy by giving written notice to the other at least 30 days prior to the

intended termination date, subject to any applicable laws.  Such notice may be given on any date.

ý  C.  RENEWAL OR EXTENSION TERMS:  See attached addendum

3.   BASE RENT:

A.   Tenant

agrees to pay Base Rent at the rate of (CHECK ONE ONLY:)

ý  (1)  $3125.00 per month, for the term of the agreement

o  (2)  $              per month,

for the first 12 months of the agreement. 

Commencing with the 13th month, and upon expiration of each 12 months

thereafter, rent shall be adjusted according to any increase in the U.S.

Consumer Price Index of the Bureau of Labor Statistics of the Department of

Labor for All Urban Consumers (“CPI”) for                                      (the city nearest the

location of the Premises), based on the following formula: Base Rent will be

multiplied by the most current CPI preceding the first calendar month during

which the adjustment is to take effect, and divided by the most recent CPI

preceding the Commencement Date.  In no

event shall any adjusted Base Rent be less than the Base Rent for the month

immediately preceding the adjustment. 

If the CPI is no longer published, then the adjustment to Base Rent

shall be based on an alternate index that most closely reflects the CPI.

o  (3)       $____________

per month for the period commencing ____________ and ending ____________ and

                 $____________ per

month for the period commencing ____________ and ending ____________ and

                 $____________ per

month for the period commencing ____________ and ending _______________.

o  (4) In accordance with the attached rent schedule.

o  (5) Other:

__________________________________________________________________________________________.

B.  Base Rent is

payable in advance on the 1st (or o) day of each

calendar month, with 5 days grace.

C.  If the

Commencement Date falls on any day other than the first day of the month, Base

Rent for the first calendar month shall be prorated based on a 30-day

period.  If Tenant has paid one full

month’s Base Rent in advance of the Commencement Date, Base Rent for the second

calendar month shall be prorated based on a 30-day period.

4.   RENT:

A.  Definition:

(“Rent”) shall mean all monetary obligations of Tenant to Landlord under the

terms of this agreement, except security deposit.

B.  Payment: Rent

shall be paid to (Name)  Cliff Branch

at (address) 1023 Nipomo St. San Luis Obispo, CA 93401, or at any other

location specified by Landlord in writing to Tenant.

C.  Timing: Base

Rent shall be paid as specified in paragraph 3.  All other Rent shall be paid within 30 days after Tenant is

billed by Landlord.

5.   EARLY

POSSESSION:  Tenant is

entitled to possession of the Premises on June 1, 2002 (see #7 addendum).  If Tenant is in possession prior to the

Commencement Date, during this time (i)

Tenant is not obligated to pay Base Rent, and (ii)

Tenant � is ý is not

obligated to pay Rent other than Base Rent. 

Whether or not Tenant is obligated to pay Rent prior to Commencement

Date, Tenant is obligated to comply with all other terms of this agreement.

6.   SECURITY DEPOSIT:

A.  Tenant agrees

to pay Landlord $4000.00 as a security deposit.  Tenant agrees not to hold Broker responsible

for its return.  (IF CHECKED:) ý If Base Rent

increases during the term of this agreement, Tenant agrees to increase security

deposit by the same proportion as the increase in Base Rent.  (Upon exercising renewal options.)

B.  All or any

portion of the security deposit may be used, as reasonably necessary, to: (i) cure Tenant’s default in payment of

Rent, late charges, non-sufficient funds (“NSF”) fees, or other sums due; (ii) repair damage, excluding ordinary wear

and tear, caused by Tenant or by a guest or licensee of Tenant; (iii) broom clean the Premises, if

necessary, upon termination of the tenancy; and (iv) cover any other unfulfilled obligation of Tenant.  SECURITY

DEPOSIT SHALL NOT BE USED BY TENANT IN LIEU OF PAYMENT OF LAST MONTH’S RENT.  If all or any portion of the security

deposit is used during tenancy, Tenant agrees to reinstate the total security

deposit within 5 days after written notice is delivered to Tenant.  Within 30 days after Landlord receives

possession of the Premises, Landlord shall: (i)

furnish Tenant an itemized statement indicating the amount of any security

deposit received and the basis for its disposition, and (ii) return any remaining portion of

security deposit to Tenant.  However, if

the Landlord’s only claim upon the security deposit is for unpaid Rent, the

remaining portion of the security deposit, after deduction of unpaid Rent,

shall be returned within 14 days after the Landlord receives possession.

C.  No interest

will be paid on security deposit, unless required by local ordinance.

 

	

  The

  copyright laws of the United States (Title 17 U.S. Code) forbid the

  unauthorized reproduction of this form, or any portion thereof, by photocopy

  machine or any other means, including facsimile or computerized formats.

  Copyright © 1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS

  RESERVED

   

  CL-11 REVISED 10/01 (PAGE 1 OF 6)

  	

  Landlord

  and Tenant acknowledge receipt of a copy of this page.

   

            Landlord’s Initials ([ILLEGIBLE])([ILLEGIBLE])

            Tenant’s Initials ([ILLEGIBLE])([ILLEGIBLE])

   

  Reviewed

  by

  Broker

  or Designee_____Date__

  

 

1

 

	

  Premises: 

  	

  671 Tefft Street Suite 4, Nipomo, CA

  	

  Date:

  	

  May

  1, 2002

  

 

7.    PAYMENTS:

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Payment

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Total Due

  	

   

  	

  Received

  	

   

  	

  Balance

  Due  

  	

   

  	

  Due Date

  	

   

  
	

  A. 

  	

  Rent: 

  	

  From 

  	

  6/1/02

  	

  To

  	

  6/31/02

  	

   

  	

  $

  	

  3125.00

  	

   

  	

  $

  	

  -0-

  	

   

  	

  $

  	

  3125.00

  	

   

  	

  April

  3, 2002

  	

   

  
	

   

  	

   

  	

   

  	

  Date

  	

   

  	

  Date

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  B.

  	

  Security Deposit

  .............................................................

  	

   

  	

  $

  	

  4000.00

  	

   

  	

  $

  	

  -0-

  	

   

  	

  $

  	

  934.44

  	

   

  	

  April

  3, 2002

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  C.

  	

  Other:

  	

  See

  Addendum

  	

   

  	

  $

  	

  245.00

  	

   

  	

  $

  	

  -0-

  	

   

  	

  $

  	

  245.00

  	

   

  	

  April

  3, 2002

  	

   

  
	

   

  	

   

  	

  Category

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  D.

  	

  Other:

  	

   

  	

   

  	

  $

  	

  —

  	

   

  	

  $

  	

  —

  	

   

  	

  $

  	

  —

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Category

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  E.

  	

  Total:

  	

  .........................................................................

  	

   

  	

  $

  	

  7,370.00

  	

   

  	

  $

  	

   

  	

  $

  	

  7,370.00

  	

   

  	

   

  	

   

  

 

8.   

PARKING:  Tenant is entitled

to use of common parking area and see addendum 7 reserved vehicle

parking spaces.  The right to parking ý is o is not

included in the Base Rent charged pursuant to paragraph 3.  If not included in the Base Rent, the

parking rental fee shall be an additional $N/A  per month.  Parking

space(s) are to be used for parking operable motor vehicles, except for

trailers, boats, campers, buses or trucks (other than pick-up trucks).  Tenant shall park in assigned space(s)

only.  Parking space(s) are to be kept clean.  Vehicles leaking oil, gas or other motor

vehicle fluids shall not be parked in parking spaces or on the Premises.  Mechanical work or storage of inoperable

vehicles is not allowed in parking space(s) or elsewhere on the Premises.  No overnight parking is permitted.

9.   

ADDITIONAL STORAGE:  Storage is

permitted as follows:  N/A.   The right to additional storage space o is ý is not

included in the Base Rent charged pursuant to paragraph 3.  If not included in Base Rent, storage space

shall be an additional

$ N/A   per month.  Tenant shall

store only personal property that Tenant owns, and shall not store property

that is claimed by another, or in which another has any right, title, or interest.  Tenant shall not store any improperly

packaged food or perishable goods, flammable materials, explosives, or other

dangerous or hazardous material.  Tenant

shall pay for, and be responsible for, the clean-up of any contamination caused

by Tenant’s use of the storage area.

10.   LATE

CHARGE; INTEREST; NSF CHECKS:  Tenant

acknowledges that either late payment of Rent or issuance of a NSF check may

cause Landlord to incur costs and expenses, the exact amount of which are

extremely difficult and impractical to determine.  These costs may include, but are not limited to, processing,

enforcement and accounting expenses, and late charges imposed on Landlord.  If any installment of Rent due from Tenant

is not received by Landlord within 5 calendar

days after due date, or if a check is returned NSF, Tenant shall pay

to Landlord, respectively $200.00 as late charge, plus 10% interest per

annum on the delinquent amount and $25.00 as a NSF fee, any of which shall be

deemed additional Rent.  Landlord and

Tenant agree that these charges represent a fair and reasonable estimate of the

costs Landlord may incur by reason of Tenant’s late or NSF payment.  Any late charge, delinquent interest, or NSF

fee due shall be paid with the current installment of Rent.  Landlord’s acceptance of any late charge or

NSF fee shall not constitute a waiver as to any default of Tenant.  Landlord’s right to collect a Late Charge or

NSF fee shall not be deemed an extension of the date Rent is due under

paragraph 4, or prevent Landlord from exercising any other rights and remedies

under this agreement, and as provided by law.

11.   CONDITION

OF PREMISES:  Tenant has

examined the Premises and acknowledges that Premise is clean and in operative

condition, with the following exceptions: 

None.    Items listed as

exceptions shall be dealt with in the following manner:  N/A.

12.   ZONING

AND LAND USE:  Tenant accepts

the Premises subject to all local, state and federal laws, regulations and

ordinances (“Laws”).  Landlord makes no

representation or warranty that Premises are now or in the future will be

suitable for Tenant’s use.  Tenant has

made its own investigation regarding all applicable laws.

13.   TENANT OPERATING

EXPENSES:  Tenant agrees

to pay for all utilities and services directly billed to Tenant.

14.   PROPERTY

OPERATING EXPENSES:

A. Tenant agrees to pay its proportionate share

of Landlord’s estimated monthly property operating expenses, including but not

limited to, common area maintenance, consolidated utility and service bills,

insurance, and real property taxes, based on the ratio of the square footage of

the Premises to the total square footage of the rentable space in the entire

property.

OR   B.  ý  (If checked)  Paragraph

14 does not apply.  See Addendum

15.   USE:  The Premises are for the

sole use as a bank or financial institution.

No other use is permitted

without Landlord’s prior written consent. 

If any use by Tenant causes an increase in the premium on Landlord’s

existing property insurance,  Tenant

shall pay for the increased cost. 

Tenant will comply with all Laws affecting its use of the Premises.

16.  

RULES/REGULATIONS:  Tenant agrees

to comply with all rules and regulations of Landlord (and, if applicable,

Owner’s Association) that are at any time posted on the Premises or delivered

to Tenant.  Tenant shall not, and shall

ensure that guests and licensees of Tenant do not, disturb, annoy, endanger, or

interfere with other tenants of the building or neighbors, or use the Premises

for any unlawful purposes, including, but not limited to, using, manufacturing,

selling, storing, or transporting illicit drugs or other contraband, or

violating any law or ordinance, or committing a waste or nuisance on or about

the Premises.

17:   MAINTENANCE:

A.  Tenant  OR o (If checked, Landlord) shall professionally

maintain the Premises including heating, air conditioning, electrical, plumbing

and water systems, if any, and keep glass, windows and doors in operable and

safe condition.  Unless Landlord is

checked, if Tenant fails to maintain the Premises, Landlord may contract for or

perform such maintenance, and charge Tenant for Landlord’s cost.

B.   Landlord  OR o  (If checked, Tenant) shall maintain the

roof, foundation, exterior walls, common areas and see addendum.

 

	

  The

  copyright laws of the United States (Title 17 U.S. Code) forbid the

  unauthorized reproduction of this form, or any portion thereof, by photocopy

  machine or any other means, including facsimile or computerized formats.

  Copyright © 1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS

  RESERVED

   

  CL-11 REVISED 10/01 (PAGE 2 OF 6)

  	

  Landlord

  and Tenant acknowledge receipt of a copy of this page.

   

            Landlord’s Initials ([ILLEGIBLE])([ILLEGIBLE])

            Tenant’s Initials ([ILLEGIBLE])([ILLEGIBLE])

   

  Reviewed

  by

  Broker

  or Designee_____Date__

  

 

2

 

	

  Premises: 

  	

  671 Tefft Street Suite 4, Nipomo, CA

  	

  Date:

  	

  May

  1, 2002

  

 

18.       ALTERATIONS: Tenant shall

not make any alterations in or about the Premises, including installation of

trade fixtures and signs, without Landlord’s prior written consent, which shall

not be unreasonably withheld. Any alterations to the Premises shall be done

according to Law and with required permits. Tenant shall give Landlord advance

notice of the commencement date of any planned alteration, so that Landlord, at

its option, may post a Notice of Non-Responsibility to prevent potential liens

against Landlord’s interest in the Premises. Landlord may also require Tenant

to provide Landlord with lien releases from any contractor performing work on

the Premises.

19.       GOVERNMENT

IMPOSED ALTERATIONS: Any alterations required by Law as a result of

Tenant’s use shall be Tenant’s responsibility. Landlord shall be responsible

for any other alterations required by Law.

21.       SIGNS: Tenant

authorizes Landlord to place a FOR SALE sign on the Premises at any time, and a

FOR LEASE sign on the Premises within the 90 (or ý   150) day period preceding the termination

of this agreement.

22.       SUBLETTING/ASSIGNMENT: Tenant shall

not sublet or encumber all or any part of Premises, or assign or transfer this

agreement or any interest in it, without the prior written consent of Landlord,

which shall not be unreasonably withheld. Unless such consent is obtained, any

subletting, assignment, transfer, or encumberance of the Premises, agreement,

or tenancy, by voluntary act of Tenant, operation of law, or otherwise, shall

be null and void, and, at the option of Landlord, terminate this agreement. Any

proposed sublessee, assignee, or transferee shall submit to Landlord an

application and credit information for Landlord’s approval, and, if approved,

sign a separate written agreement with Landlord and Tenant. Landlord’s consent

to any one sublease, assignment, or transfer, shall not be construed as consent

to any subsequent sublease, assignment, or transfer, and does not release

Tenant of Tenant’s obligation under this agreement.

23.       POSSESSION:  If Landlord is unable to deliver possession

of Premises on the Commencement Date, such date shall be extended to the date

on which possession is made available to Tenant. However, the expiration date

shall remain the same as specified in paragraph 2. If Landlord is unable to

deliver possession within 60 (or o) calendar days after the agreed Commencement Date, Tenant may

terminate this agreement by giving written notice to Landlord, and shall be

refunded all Rent and security deposit paid.

24.       TENANT’S

OBLIGATION UPON VACATING PREMISES: Upon termination of this

agreement, Tenant shall: (i) give

Landlord all copies of all keys or opening devices to Premises, including any

common areas; (ii) vacate Premises

and surrender it to Landlord empty of all persons and personal property; (iii) vacate all parking and storage

spaces; (iv) deliver Premises to

Landlord in the same condition as referenced in paragraph 11; (v) clean Premises; (vi) give written notice to Landlord of

Tenant’s forwarding address; and (vii)

see addendum #6 page 2

                        All

improvements installed by Tenant, with or without Landlord’s consent, become

property of Landlord upon termination. Landlord may nevertheless require Tenant

to remove any such improvement that did not exist at the time possession was

made available to Tenant.

25.       BREACH OF

CONTRACT/EARLY TERMINATION: In event Tenant, prior to

expiration of this agreement, breaches any obligation in this agreement, abandons

the premises, or gives notice of tenant’s intent to terminate this tenancy

prior to its expiration, in addition to any obligations established by

paragraph 24, Tenant shall also be responsible for lost rent, rental

commissions, advertising expenses, and painting costs necessary to ready

Premises for re-rental. Landlord may also recover from Tenant: (i) the worth, at the time of the award, of

the unpaid Rent that had been earned at the time of termination; (ii) the worth, at the time of the award,

of the amount by which the unpaid Rent that would have been earned after

expiration until time of award exceeds the amount of such rental loss the

Tenant proves could have been reasonably avoided; and (iii) the worth, at the time of award, of

the amount by which the unpaid Rent for the balance of the term after the time

of award exceeds the amount of such rental loss that Tenant proves could be

reasonably avoided. Landlord may elect to continue the tenancy in effect for so

long as Landlord does not terminate Tenant’s right to possession. by either

written notice of termination of possession or by reletting the Premises to

another who takes possession, and Landlord may enforce all Landlord’s rights

and remedies under this agreement, including the right to recover the Rent as

it becomes due.

26.       DAMAGE TO

PREMISES: If, by no fault of Tenant, Premises are totally or

partially damaged or destroyed by fire, earthquake, accident, or other

casualty, Landlord shall have the right to restore the Premises by repair or

rebuilding. If Landlord elects to repair or rebuild, and is able to complete

such restoration within 90 days from the date of damage, subject to the terms

of this paragraph, this agreement shall remain in full force and effect. If

Landlord is unable to restore the Premises within this time, or if Landlord

elects not to restore, then either Landlord or Tenant may terminate this

agreement by giving the other written notice. Rent shall be abated as of the

date of damage. The abated amount shall be the current monthly Base Rent

prorated on a 30-day basis. If this agreement is not terminated, and the damage

is not repaired, then Rent shall be reduced based on the extent to which the

damage interferes with Tenant’s reasonable use of the Premises. If damage

occurs as a result of an act of Tenant or Tenant’s guests, only Landlord shall

have the right of termination, and no reduction in Rent shall be made.

27.       HAZARDOUS

MATERIALS: Tenant shall not use, store, generate, release or

dispose of any hazardous material on the Premises or the property of which the

Premises are part. However, Tenant is permitted to make use of such materials

that are required to be used in the normal course of Tenant’s business provided

that the Tenant complies with all applicable Laws related to the hazardous

materials. Tenant is responsible for the cost of removal and remediation, or

any clean-up of any contamination caused by Tenant.

28.       CONDEMNATION: If all or part

of the Premises is condemned for public use, either party may terminate this

agreement as of the date possession is given to the condemner. All condemnation

proceeds, exclusive of those allocated by the condemner to Tenant’s relocation

costs and trade fixtures, belong to Landlord.

29.       INSURANCE: Tenant’s

personal property, fixtures, equipment, inventory and vehicles are not insured

by Landlord against loss or damage due to fire, theft, vandalism, rain, water,

criminal or negligent acts of others, or any other cause. Tenant is to carry

Tenant’s own property insurance to protect Tenant from any such loss. In

addition, Tenant shall carry liability insurance in the amount of not less than

$1,000,000.00. Tenant’s liability insurance shall name Landlord and

Landlord’s agent as additional insured. Tenant, upon Landlord’s request, shall

provide Landlord with a certificate of insurance establishing Tenant’s

compliance. Landlord shall maintain liability insurance insuring Landlord, but

not Tenant, in an amount of at least $1,000,000.00, plus property

insurance in an amount sufficient to cover the replacement cost of the

property. Tenant is advised to carry business interruption insurance in an

amount at least sufficient to cover Tenant’s complete rental obligation to

Landlord. Landlord is advised to obtain a policy of rental loss insurance. Both

Landlord and Tenant release each other, and waive their respective rights to

subrogation against each other, for loss or damage covered by insurance.

 

	

  The

  copyright laws of the United States (Title 17 U.S. Code) forbid the

  unauthorized reproduction of this form, or any portion thereof, by photocopy

  machine or any other means, including facsimile or computerized formats.

  Copyright © 1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS

  RESERVED

   

  CL-11 REVISED 10/01 (PAGE 3 OF 6)

  	

  Landlord

  and Tenant acknowledge receipt of a copy of this page.

   

            Landlord’s Initials ([ILLEGIBLE])([ILLEGIBLE])

            Tenant’s Initials ([ILLEGIBLE])([ILLEGIBLE])

   

  Reviewed

  by

  Broker

  or Designee_____Date__

  

 

3

 

	

  Premises: 

  	

  671 Tefft Street Suite 4, Nipomo, CA

  	

  Date:

  	

  May

  1, 2002

  

 

30.     TENANCY

STATEMENT (ESTOPPEL CERTIFICATE):  Tenant shall

execute and return a tenancy statement (estoppel certificate), delivered to

Tenant by Landlord or Landlord’s agent, within 3 days after its receipt. The

tenancy statement shall acknowledge that this agreement is unmodified and in

full force, or in full force as modified, and state the modifications. Failure

to comply with this requirement: (i)

shall be deemed Tenant’s acknowledgement that the tenancy statement is true and

correct, and may be relied upon by a prospective lender or purchaser; and (ii) may be treated by Landlord as a

material breach of this agreement. Tenant shall also prepare, execute, and

deliver to Landlord any financial statement (which will be held in confidence)

reasonably requested by a prospective lender or buyer. — SEE ADDENDUM

NON-DISTURBANCE

31.       LANDLORD’S

TRANSFER: Tenant agrees that the transferee of Landlord’s

interest shall be substituted as Landlord under this agreement. Landlord will

be released of any further obligation to Tenant regarding the security deposit,

only if the security deposit is returned to Tenant upon such transfer, or if

the security deposit is actually transferred to the transferee. For all other

obligations under this agreement, Landlord is released of any further liability

to Tenant, upon Landlord’s transfer.

32.       SUBORDINATION:  This agreement shall be subordinate to all

existing liens and, at Landlord’s option, the lien of any first deed of trust

or first mortgage subsequently placed upon the real property of which the

Premises are a part, and to any advances made on the security of the Premises,

and to all renewals, modifications, consolidations, replacements, and

extensions. However, as to the lien of any deed of trust or mortgage entered

into after execution of this agreement, Tenant’s right to quiet possession of

the Premises shall not be disturbed if Tenant is not in default and so long as

Tenant pays the Rent and observes and performs all of the provisions of this

agreement, unless this agreement is otherwise terminated pursuant to its terms.

If any mortgagee, trustee, or ground lessor elects to have this agreement

placed in a security position prior to the lien of a mortgage, deed of trust,

or ground lease, and gives written notice to Tenant, this agreement shall be

deemed prior to that mortgage, deed of trust, or ground lease, or the date of

recording.

33.       TENANT

REPRESENTATIONS; CREDIT: Tenant warrants that all statements in

Tenant’s financial documents and rental application are accurate. Tenant

authorizes Landlord and Broker(s) to obtain Tenant’s credit report at time of

application and periodically during tenancy in connection with approval,

modification, or enforcement of this agreement. Landlord may cancel this

agreement: (i) before occupancy

begins, upon disapproval of the credit report(s); or (ii) at any time, upon discovering that information in

Tenant’s application is false. A negative credit report reflecting on Tenant’s

record may be submitted to a credit reporting agency, if Tenant fails to pay

Rent or comply with any other obligation under this agreement.

34.  DISPUTE

RESOLUTION:

A.            MEDIATION: Tenant and

Landlord agree to mediate any dispute or claim arising between them out of this

agreement, or any resulting transaction, before resorting to arbitration or

court action, subject to paragraph 34B(2) below. Paragraphs 34B(2) and (3)

apply whether or not the arbitration provision is initiated. Mediation, fees,

if any, shall be divided equally among the parties involved. If for any dispute

or claim to which this paragraph applies, any party commences an action without

first attempting to resolve the matter through mediation, or refuses to mediate

after a request has been made, then that party shall not be entitled to recover

attorney fees, even if they would otherwise be available to that party in any

such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION

PROVISION IS INITIALED.

B.          ARBITRATION

OF DISPUTES: (1) Tenant and Landlord agree that any dispute or claim in Law or

equity arising between them out of this agreement or any resulting transaction,

which is not settled through mediation, shall be decided by neutral, binding

arbitration, including and subject to paragraphs 34B(2) and (3) below. The

arbitrator shall be a retired judge or justice, or an attorney with at least 5

years of real estate transactional law experience, unless the parties mutually

agree to a different arbitrator, who shall render an award in accordance with

substantive California Law. In all other respects, the arbitration shall be

conducted in accordance with Part III, Title 9 of the California Code of Civil

Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court

having jurisdiction. The parties shall have the right to discovery in

accordance with Code of Civil Procedure §1283.05.

                        (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following

matters are excluded from Mediation and Arbitration hereunder: (i) a judicial or non-judicial foreclosure

or other action or proceeding to enforce a deed of trust, mortgage, or

installment land sale contract as defined in Civil Code §2985 (ii) an unlawful detainer action; (iii) the filing or enforcement or a

mechanic’s lien; (iv) any matter

that is within the jurisdiction of a probate, small claims, or bankruptcy

court; and (v) an action for

bodily injury or wrongful death, or for latent or patent defects to which code

of Civil Procedures §337.1 or §337.15 applies. The filing of a court action to

enable the recording of a notice of pending action, for order of attachment,

receivership, injunction, or other provisional remedies, shall not constitute a

violation of the mediation and arbitration provisions.

                        (3) BROKERS: Tenant and Landlord agree to mediate and arbitrate

disputes or claims involving either or both Brokers, provided either or both

Brokers shall have agreed to such mediation or arbitration, prior to, or within

a reasonable time after the dispute or claim is presented to Brokers. Any

election by either or both Brokers to participate in mediation or arbitration

shall not result in Brokers being deemed parties to the agreement.

                        “NOTICE:  BY INITALING IN THE

SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS

INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION DECIDED BY NEUTRAL

ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU

MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY

INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO

DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE

‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION

AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE

AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS

ARBITRATION PROVISION IS VOLUNTARY.”

                        “WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES

ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION

TO NEUTRAL ARBITRATION.”

 

	

   

  	

  Landlord’s Initials _______/_______

  Tenant’s Initials  _______/_______

  

  

 

	

  The

  copyright laws of the United States (Title 17 U.S. Code) forbid the

  unauthorized reproduction of this form, or any portion thereof, by photocopy

  machine or any other means, including facsimile or computerized formats.

  Copyright © 1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS

  RESERVED

   

  CL-11 REVISED 10/01 (PAGE 4 OF 6)

  	

  Landlord

  and Tenant acknowledge receipt of a copy of this page.

   

            Landlord’s Initials ([ILLEGIBLE])([ILLEGIBLE])

            Tenant’s Initials ([ILLEGIBLE])([ILLEGIBLE])

   

  Reviewed

  by

  Broker

  or Designee_____Date_____

  

 

4

 

	

  Premises: 

  	

  671 Tefft Street Suite 4, Nipomo, CA

  	

  Date:

  	

  May

  1, 2002

  

 

35.  JOINT AND

INDIVIDUAL OBLIGATIONS:  If there is

more than one Tenant, each one shall be individually and completely responsible

for the performance of all obligations of Tenant under this agreement, jointly

with every other Tenant, and individually, whether of not in possession.

36.  NOTICE: Notices may be

served by mail, facsimile, or courier at the following address or location, or

at any other location subsequently designated:

 

	

  Landlord:

  	

   

  	

   

  	

  Tenant:  

  	

   

  
	

  Cliff Branch

  	

   

  	

  Mission Community Bank

  
	

  1023 Nipomo St.

  	

   

  	

  581 Higuera St.

  
	

  San Luis Obispo, CA 93401

  	

   

  	

  San Luis Obispo, CA 93401

  

 

 

Notice is deemed effective upon the earliest

of the following: (i) personal

receipt by either party or their agent; 

(ii) written

acknowledgement of the notice; or (iii)

5 days after mailing notice to such location by first class mail, postage

pre-paid.

37.  WAIVER:  The waiver of any breach shall not be

construed as a continuing waiver of the same breach or a waiver of any subsequent

breach.

38. 

INDEMNIFICATION:  Tenant shall

indemnify, defend and hold Landlord harmless from all claims, and disputes,

litigation, judgments and attorney fees arising out of Tenant’s use of the

Premises.

39.  OTHER TEMS AND

CONDITIONS/SUPPLEMENTS: See Addendum

The

following ATTACHED supplements/exhibits are incorporated in this agreement:

40.  ATTORNEY

FEES:  In any action or proceeding

arising out of this agreement, the prevailing party between Landlord and Tenant

shall be entitled to reasonable attorney fees and cost from the non-prevailing

Landlord or Tenant, except as provided in paragraph 34A.

41.  ENTIRE

CONTRACT:  Time is of the

essence.  All prior agreements between

Landlord and Tenant are incorporated in this agreement, and attached addendum

which constitutes the entire contract. 

It is intended as a final expression of the parties’ agreement, and may

not be contradicted by evidence of any prior agreement of contemporaneous oral

agreement.  The parties further intend

that this agreement constitutes the complete and exclusive statement of its

terms, and that no extrinsic evidence whatsoever may be introduced in any

judicial or other proceeding, if any, involving this agreement.  Any provision of this agreement that is held

to be invalid shall not affect the validity or enforceability of any other

provision in this agreement.  This

agreement shall be binding upon, and inure to the benefit of, the heirs,

assignees and successors to the parties.

42.  BROKERAGE: 

N/A

43.  AGENCY CONFIRMATION:  N/A

 

	

  The

  copyright laws of the United States (Title 17 U.S. Code) forbid the

  unauthorized reproduction of this form, or any portion thereof, by photocopy

  machine or any other means, including facsimile or computerized formats.

  Copyright © 1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS

  RESERVED

   

  CL-11 REVISED 10/01 (PAGE 5 OF 6)

  	

  Landlord

  and Tenant acknowledge receipt of a copy of this page.

   

            Landlord’s Initials ([ILLEGIBLE])([ILLEGIBLE])

            Tenant’s Initials ([ILLEGIBLE])([ILLEGIBLE])

   

  Reviewed

  by

  Broker

  or Designee_____Date_____

  

 

5

 

	

  Premises: 

  	

  671 Tefft Street Suite 4, Nipomo, CA

  	

  Date:

  	

  May

  1, 2002

  

 

Landlord

and Tenant acknowledge and agree that Brokers:(i) do not guarantee the

condition of the Premises; (ii) cannot verify representations made by others;

(iii) will not verify zoning and land use restrictions; (iv) cannot provide

legal or tax advice; (v) will not provide other advice or information that

exceeds the knowledge, education or experience required to obtain a real estate

license.  Furthermore, if Brokers are

not also acting as Landlord in the agreement, Brokers: (vi) do not decide what

rental rate a Tenant should pay or Landlord should accept; and (vii) do not

decide upon the length or other terms or tenancy.  Landlord and Tenant agree that they will seek legal, tax,

insurance, and other desired assistance from appropriate professionals.

 

             x /s/ Anita Robinson

Tenant Mission Community Bank Date_____

    By Anita M. Robinson, President & CEO

(Print Name)

Address 581 Higuera St.  City SanLuis Obispo State Ca

Zip 93401

 

                x /s/ Cliff Branch

Landlord Cliff Branch Date_____

                (Owner

or agent with authority to enter into this agreement)

Address 1023 Nipomo Street City San

Luis Obispo State CA Zip 93401

 

THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA

ASSOCIATION OF REALTORS® (C.A.R.). NO REPRSENTATION IS MADE AS TO THE LEGAL

VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION.  A REAL ESTATE BROKER IS THE PERSON QUALIFIED

TO ADVISE ON REAL ESTATE TRANSACTIONS. 

IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.

 

This form is available for use by the entire

real estate industry.  It is not

intended to identify the user as a REALTOR®.   REALTOR® is a

registered collective membership mark which may be used only by members of the

NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.

 

	

  Published and Distributed

  by:

  REAL ESTATE BUSINESS

  SERVICE, INC.

  a

  subsidiary of the CALIFORNIA ASSOCATION OF REALTORS®

  525 South Virgil Avenue,

  Los Angeles, California 90020

  	

   

  	

  Reviewed by

  Broker or Designee          Date           

   

  

 

CL-11

REVISED 10/01 (PAGE 6 OF 6)

 

6

 

Addendum

to Lease between Cliff Branch (Landlord) and Mission Community Bank (Tenant)

dated June 1, 2002.

 

Landlord and Tenant hereby

additionally agree:.

 

1.   The Landlord shall meet with

the SLO County planning staff to discuss the feasibility of the following: A)

Permission to place a Mission Community Bank monument sign near the easterly

parking lot entrance. The monument sign would be in addition to the Mission

Community Bank building signs. The size of the monument sign would be no more

than 54” long and 42” high. B) To explore the possibility of the installation

of a remote drive–through teller kiosk. In the event that the County will

grant permission and providing that the installation of these items would not

interrupt the normal operation of the Tefft Center, the Tennant would be allowed

to pursue the installation of these items at their sole expense.

 

2.   Landlord shall also discuss

with the LGA Architects and the County Planning Staff the feasibility of

connecting the two parking areas in front of the building (adjacent to Tefft

Street) for easier ingress and egress to the center. In the event that this is

feasible (as determined by the Landlord and the County) then the landlord shall

pay for the cost of this improvement.

 

3.   The Landlord makes no

representations as to whether or not the improvement items described in

paragraphs #1 and #2 above can be accomplished. Landlord and Tenant agree that

the Commercial Lease Agreement is not contingent upon the completion of any of

these improvements. All terms and conditions of the Agreement shall remain in

full force and affect whether any of the improvements listed in paragraph #1

and #2 come to fruition, or not.

 

4.   Landlord agrees that the hot

water heater and HVAC systems will be in good repair by June 1, 2002. During,

the term of the lease and any lease extension periods, the Tenant shall be

responsible for maintaining and repairing the water heater and the HVAC unit.

In the event that the unit(s) need(s) replacing, the Landlord agrees to pay 50%

of the cost of the replacement of one or both of the units, not to exceed a

total cost to the Landlord of $3000. After the Landlord has paid 50% of the

cost of replacement of either item, the Tenant shall be solely responsible for

the maintenance, repair and/or replacement of these units. The Tenant shall

install and maintain any and all plumbing, electrical, phone, security systems,

communications equipment and/or wiring related to tenant improvements.

 

	

  Landlord:

  	

  /s/

  [ILLEGIBLE]

  	

   

  	

  Tenant:

  	

  /s/

  [ILLEGIBLE]

  

 

7

 

5.   Landlord agrees that no later

than December 31, 2002, Landlord will enhance the architectural character of

the Tefft Center, including but not limited to the addition of new exterior

trim, repainting the entire complex, re–landscaping as necessary, and

other improvements, as the Landlord sees fit.

 

6.   Tenant shall pay for all

business and/or occupancy permits. All existing improvements and all attached

new tenant improvements shall remain after the termination of the lease. Tenant

agrees to accept existing lease space in an “as is” condition and will pay for

all Tenant improvements including but not limited to installing new carpeting

and repainting the interior.

 

7.   Tenant is aware that Hacienda

Bank currently holds a lease through June 30,  2002

Tenant shall be responsible for obtaining written permission and keys from

Hacienda Bank prior to taking possession on or before June ‘30, 2002.

 

OPTIONS TO EXTEND LEASE

 

1.    Should the Tenant desire to

extend the lease for five more years, the Tenant must notify the Landlord, by

certified letter, on or before January 1, 2007. In the event the Tenant does

not notify the Landlord on or before January 1, 2007, the lease shall terminate

on May 31, 2007.

 

2.    Providing the Tenant gives

written notice as outlined in paragraph #1 above, the Landlord agrees that the

lease can be extended for the period June 1, 2007 through May 31, 2012 under

the same terms and conditions as the Commercial Lease Agreement dated June 1,

2002 except that the monthly rent beginning June 1, 2007 shall be at “Market

Rate” which in no event, shall be less than $3400 and no more than $3800 per

month. In the event that Landlord and Tenant cannot agree on a “market rate”

rent amount, then the Landlord and Tenant shall each hire (at their own expense)

an MAI appraiser who has operated in the Nipomo area for at least 5 years, to

give a written market appraisal of the rent value. The average of the two

market rent appraisals shall be the new rent amount, providing that in no event

shall the amount be less than $3400 and not more than $3800 per month.

 

3. The Tenant shall have two additional five–year option periods

that will run concurrently after the end of the first five–year option

period. The Rent shall be at “Market Rate” to be negotiated by the Landlord and

Tenant, but in no event shall the rent be less than the last month’s rent of

the preceding rental period.

 

	

  Landlord:

  	

  /s/

  [ILLEGIBLE]

  	

   

  	

  Tenant:

  	

  /s/

  [ILLEGIBLE]

  

 

8

 

Additional

items:

 

1.

Parking: The Landlord agrees to immediately allow Lessee to have three (3)

reserved parking spaces adjacent to the bank premises for bank customers and

one (1) additional reserved space by December 31, 2002. Said reserved parking

spaces may be marked by the bank, at the bank’s expense with a sign (not larger

than 12”XI8”) that says “Reserved for Bank Customers.”

 

2.

Non–Disturbance Agreement– The Landlord agrees that Lessee’s

possession of the Premises, and this Lease, including any options to extend the

term hereof, will not be disturbed so long as the Lessee is not in Breach

hereof and shall transfer over to the record owner of the premises.

 

Common area expense

 

In

addition to the base rent, the Tenant shall also pay the Landlord a fee each

month for the common area expenses, as follows:

 

A:

Years 1 through year 5: $245 per month.

 

B:

Option Periods: To be increased pro–rata with the monthly rent.

 

Signage

 

Any

and all signage must be approved by the Landlord, in advance of installation

and must conform to the SLO County “Conditions of Approval” for Tefft Center.

 

 

	

  /s/ Cliff Branch

  	

   

  	

  /s/ Anita Robinson

  
	

  Cliff Branch

  	

   

  	

  Anita Robinson

  
	

  Landlord

  	

   

  	

  President and CEO

  
	

   

  	

   

  	

  Mission Community Bank

  
	

   

  	

   

  	

  Tenant

  

 

9EXHIBIT 10.36

 

CLOVIS COMMUNITY BANK

SECOND AMENDED AND RESTATED

 DIRECTOR DEFERRED FEE AGREEMENT

 

THIS AGREEMENT is entered into this 13th day of February,

2002 by and between CLOVIS COMMUNITY BANK, a California-chartered commercial

bank located in Clovis, California (the “Company”), and                          (the “Director”).

 

INTRODUCTION

 

Whereas, the Director

has contributed substantially to the success of the Company and its parent

corporation,

 

Whereas, to encourage

the Director to remain a Director of the Company, the Company is willing to

provide a deferred fee opportunity to the Director payable out of the Company’s

general assets,

 

Whereas, the Director

and the Company are parties to an Amended and Restated Deferred Fee Agreement

dated November 14, 1996,

 

Whereas, the parties to

this Agreement intend that this Agreement supersede and replace in its entirety

the November 14, 1996 Amended and Restated Deferred Fee Agreement, which

November 14, 1996 Amended and Restated Deferred Fee Agreement shall become void

and of no further force or effect on the date that this Agreement becomes

effective,

 

Whereas, the Director

made an initial deferral election by filing with the Company a signed Election

Form within fifteen days after November 1, 1993, and whereas that Election Form

shall continue in effect with this Agreement and does not become void pursuant

to the immediately preceding paragraph with the cancellation of the November

14, 1996 Amended and Restated Deferred Fee Agreement,

 

Whereas, amounts deferred

under the Amended and Restated Deferred Fee Agreement dated November 14, 1996

will be “rolled over” and covered under this Agreement,

 

Whereas, the Company

will pay the benefits from its general assets,

 

Now

Therefore, in consideration of the foregoing premises and other

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

hereby acknowledged, the parties hereto agree as follows:

 

 

1

 

ARTICLE 1

DEFINITIONS

 

Whenever used in this Agreement,

the following words and phrases shall have the meanings specified:

 

1.1           “Change of Control” means that any of the

following events occur:

 

(a)           Merger: Central Valley Community Bancorp,

parent corporation of Clovis Community Bank, merges into or consolidates with

another corporation, or merges another corporation into Central Valley

Community Bancorp, and as a result less than 50% of the combined voting power

of the resulting corporation immediately after the merger or consolidation is

held by persons who were the holders of Central Valley Community Bancorp’s

voting securities immediately before the merger or consolidation.  For purposes of this Agreement, the term

“person” means an individual, corporation, partnership, trust, association,

joint venture, pool, syndicate, sole proprietorship, unincorporated

organization or other entity,

 

(b)           Acquisition of Significant Share Ownership: a

report on Schedule 13D or another form or schedule (other than Schedule 13G) is

filed or is required to be filed under Sections 13(d) or 14(d) of the

Securities Exchange Act of 1934, if the schedule discloses that the filing

person or persons acting in concert has or have become the beneficial owner of

25% or more of a class of Central Valley Community Bancorp’s voting securities,

but this paragraph (b) shall not apply to beneficial ownership of voting

securities of Central Valley Community Bancorp held in a fiduciary capacity by

an entity in which Central Valley Community Bancorp directly or indirectly

beneficially owns 50% or more of the outstanding voting securities, or

beneficial ownership of voting securities held by an employee benefit plan

maintained for the benefit of Clovis Community Bank employees, or

 

(c)           Change in Board Composition: during any

period of two consecutive years, individuals who constitute Central Valley

Community Bancorp’s board of directors at the beginning of the two-year period

cease for any reason to constitute at least a majority thereof; provided,

however, that, for purposes of this paragraph (c), each director who

is first elected by the board (or first nominated by the board for election by

stockholders) by a vote of at least two-thirds (2/3) of the directors who were

directors at the beginning of the period shall be deemed to have been a director

at the beginning of the two-year period.

 

2

 

1.2           “Code” means the Internal Revenue Code of

1986, as amended.

 

1.3                                 “Corporation” means Central

Valley Community Bancorp.

 

1.4                                 “Deferral Account” or “Deferred

Account” means the Company’s accounting of  the Director’s accumulated Deferrals plus

accrued interest.

 

1.5                                 “Deferrals” means the

amount of the Director’s Fees, which the Director elects to defer according to

this Agreement.

 

1.6                                 “Disability”

means the Director’s inability to perform substantially all normal duties of a

director, as determined by the Company’s Board of Directors in its sole

discretion.  As a condition to any

benefits, the Company may require the Director to submit to such physical or mental

evaluations and tests as the Board of Directors deems appropriate.

 

1.7           “Effective Date” means February 13, 2002.

 

1.8           “Election Form” means the Form attached as

Exhibit A.

 

1.9           “Fees” means the total directors fees

payable to the Director during a Plan Year.

 

1.10         “Normal Retirement Age” means the

Director’s ____ birthday.

 

1.11         “Normal Retirement Date” means the later of

the Normal Retirement Age or

Termination of Service.

 

1.12                           “Plan Year”

means the calendar year.

 

1.13                           “Projected

Benefit” means the balance that would have accumulated in the

Director’s Deferral Account at Normal Retirement Age if it is assumed that the

Director: (1) continued to defer Fees at the same rate that the Director had

been deferring Fees on the date of the Director’s death and (2) the Director

reached Normal Retirement Age.

 

1.14                           “Termination

for Cause” means the Company’s board of directors or a duly

authorized committee of the board of directors determines at any time that the

Director will not be nominated by the board or committee for reelection as a

Director of Central Valley Community Bancorp after the expiration of his

current term, or if the Director is removed as a director of the Company, in

either case because of the Director’s:

 

(a)           gross negligence or gross neglect of

duties, or

 

3

 

(b)           commission of a felony, or commission

of a misdemeanor involving moral turpitude, or

 

(c)           fraud, disloyalty, dishonesty, or

willful violation of any law or significant policy of Central Valley Community

Bancorp or the Company, or

 

(d)           removal from service or permanent

prohibition from participation in the conduct of the Company’s affairs by an

order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance

Act [ 12 U.S.C. 1818(e)(4) or (g)(1)].

 

1.15                           “Termination of Service” means the

Director ceasing to be a member for the Company’s Board of Directors for any

reason whatsoever.

 

ARTICLE 2

DEFERRAL ELECTION

 

2.1                                  INITIAL

ELECTION. The Director made an initial deferral election under this Agreement

by filing with the Company a signed Election Form within fifteen (15) days

after November 1, 1993.  The Election

Form set forth the amount of Fees to be deferred and the form of benefit

payment.  The Election Form was effective

to defer only Fees earned after the date the Election Form is received by the

Company.  Such Initial Election (or any

subsequent election under Section 2.2 that is in effect) shall continue in

effect with this Agreement.

 

 

2.2                                 ELECTION

CHANGES

 

2.2.1                        GENERALLY. The

Director may modify the amount of Fees to be deferred by filing a subsequent

signed Election Form with the Company and obtaining written approval by the

Board of Directors of the Company. The modified deferral shall not be effective

until the calendar year following the year in which the subsequent Election

Form is received by the Company. The Director may not change the form of

benefit payment initially elected under Section 2.1 without the written

approval of the Board of Directors of the Company.

 

2.2.2                        HARDSHIP. If an

unforeseeable financial emergency arising from the death of a family member,

divorce, sickness, injury, catastrophe or similar event outside the control of

the Director occurs, the Director, by written instructions to the Company may

reduce future deferrals under this Agreement.

 

4

 

ARTICLE 3

 DEFERRAL ACCOUNT

 

3.1                                 ESTABLISHING

AND CREDITING. The Company shall continue to credit the Deferral Account on its

books for the Director, and shall credit to the Deferral Account the following

amounts:

 

3.1.1                        DEFERRALS. The

Fees deferred by the Director as of the time the Fees would have otherwise been

paid to the Director.

 

3.1.2                        INTEREST. At

the end of each Plan Year under this Agreement and immediately prior to the

payment of any benefits, but only until commencement of the benefit payments

under this Agreement, unless otherwise stated, interest is to be credited on

the account balance since the preceding credit under this Section 3.1.2, if

any, equal to the rate determined by the Company’s Board of Directors, in its

sole discretion.

 

3.2

                              STATEMENT OF

ACCOUNTS. The Company shall provide to the Director, within one hundred twenty

(120) days after each anniversary of this Agreement, a statement setting forth

the Deferral Account balance.

 

3.3                               ACCOUNTING

DEVICE ONLY. The Deferral Account is solely a device for measuring amounts to

be paid under this Agreement. The Deferral Account is not a segregated fund of

any kind. The Director is a general unsecured creditor of the Company for the

payment of benefits. The benefits represent the mere Company promise to pay

such benefits. The Director’s rights are not subject in any manner to

anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,

attachment, or garnishment by the Director’s creditors.

 

ARTICLE 4

LIFETIME

BENEFITS

 

4.1     

NORMAL BENEFIT. Upon the Normal Retirement Date, the Company shall pay

to the Director the benefit described in this Section 4.1 in lieu of any other

benefit under this Agreement.

 

4.1.1                        AMOUNT OF BENEFIT. The

benefit under this Section 4.1 is the Deferral Account balance at the

Director’s Normal Retirement Date.

 

4.1.2                      PAYMENT OF BENEFIT. The

Company shall pay the benefit to the Director in the form elected by the

Director on the Election Form.

 

5

 

4.2

                              EARLY

TERMINATION BENEFIT. Upon Termination of Service prior to the Normal Retirement

Age for reasons other than death, Change of Control or Disability, the Company

shall pay to the Director the benefit described in this Section 4.2 in lieu of

any other benefit under this Agreement.

 

4.2.1                        AMOUNT OF

BENEFIT. The benefit under this Section 4.2 is the Deferral Account balance at

the Director’s Termination of Service

 

4.2.2                      PAYMENT OF BENEFIT. The

Company shall pay the early termination benefit to the Director in a lump sum

within forty-five (45) days after the Director’s Termination of Service if

early termination occurs within five years of the Agreement’s Effective Date

hereof.  If early termination occurs

after the Director has accrued five years of Deferrals, the early termination

benefit shall be paid to the Director in the form elected by the Director on

the Election Form.

 

4.3                                 DISABILITY

BENEFIT. If the Director terminates service as a director for Disability prior

to Normal Retirement Age, the Company shall pay to the Director the benefit

described in this Section 4.3.

 

4.3.1                        AMOUNT OF

BENEFIT. The benefit under this Section 4.3 is the Deferral Account balance at

the Director’s Termination of Service.

 

4.3.2                        PAYMENT OF

BENEFIT. The Company shall pay the Disability benefit to the Director in a

single lump sum within forty-five (45) days after the Director’s Termination of

Service if Disability occurs within five years of the Agreement’s Effective

Date hereof.  If Disability occurs after

the Director has accrued five years of service, the Disability benefit shall be

paid to the Director in the form elected by the Director on the Election Form.

 

4.4                               CHANGE OF CONTROL BENEFIT.

If Termination of Service occurs within 12 months after the first occurrence of

a Change of Control, excepting Termination for Cause, the Company shall pay to

the Director the benefit described in this Section 4.4 in lieu of any other benefit

under this Agreement

 

4.4.1                        AMOUNT OF

BENEFIT. The benefit under this Section 4.4 is the Deferral Account balance at

the date of the Director’s Termination of Service

 

4.4.2                      PAYMENT OF BENEFIT. The

Company shall pay the benefit to the Director in a lump sum within thirty (30)

days after the Director’s Termination of Service.

 

6

 

4.5                               HARDSHIP DISTRIBUTION. Upon

the Company’s determination (following petition by the Director) that the

Director has suffered an unforeseeable financial emergency as described in

Section 2.2.2, the Company shall distribute to the Director all or a portion of

the Deferral Account balance as determined by the Company, but in no event

shall the distribution be greater than is necessary to relieve the financial

hardship.

 

ARTICLE 5

  DEATH BENEFITS

 

 5.1                              SPLIT DOLLAR

DEATH BENEFITS FOR DEATH DURING ACTIVE SERVICE.  If the Director dies before the Normal Retirement Age while in

the active service of the Company, the Company shall pay to the Director’s

beneficiary(ies) or estate the benefit described in the Split Dollar Agreement

and Endorsement, attached to this Agreement as Addendum A, between the Company

and the Director in lieu of any other benefit payable hereunder, in accordance

with the terms and conditions of the Split Dollar Agreement and Endorsement

unless the Director’s service with the Company terminated because of

Termination for Cause.

 

5.2                                 SPLIT DOLLAR

DEATH BENEFITS DURING PENDENCY OF COLLECTING DEFERRAL ACCOUNT BALANCE.  If the Director dies after any benefit

payments provided pursuant to Article 4 have commenced under this Agreement but

before receiving all such payments, the remaining benefits shall be paid to the

Director’s beneficiary(ies) or estate pursuant to the benefit described in the

Split Dollar Agreement and Endorsement, attached to this Agreement as Addendum

A, between the Company and the Director in lieu of any other benefit payable

hereunder, in accordance with the terms and conditions of the Split Dollar Agreement

and Endorsement.

 

5.3                                 COLLECTION IN

FULL OF DEFERRAL ACCOUNT BALANCE. The benefit described in the Split Dollar

Agreement and Endorsement attached to this Agreement as Addendum A shall

terminate upon payment in full by the Company to the Director of the Deferral

Account maintained by the Company for the Director under this Agreement.

 

ARTICLE 6

BENEFICIARIES

 

6.1                               BENEFICIARY DESIGNATIONS.

The Director shall designate a beneficiary by filing a written designation with

the Company. The Director may revoke or modify the designation at any time by

filing a new designation. However, designations will only be effective if

signed by the Director and accepted by the Company during the Director’s

lifetime. The Director’s beneficiary designation shall be deemed automatically

revoked if the beneficiary predeceases the Director, or if the Director names a

spouse as beneficiary and the marriage is subsequently dissolved. If the

Director dies without a valid beneficiary designation, all payments shall be

made to the Director’s surviving spouse, if any, and if none, to the Director’s

surviving children and the descendants of any deceased child by right of

representation, and if no children or descendants survive, to the Director’s

estate.

 

7

 

6.2                               FACILITY OF

PAYMENT. If a benefit is payable to a minor, to a person declared incompetent,

or to a person incapable of handling the disposition of his or her property,

the Company may pay such benefit to the guardian, legal representative or

person having the care or custody of such minor, incompetent person or

incapable person. The Company may require proof of incompetency, minority or

guardianship as it may deem appropriate prior to distribution of the benefit.

Such distribution shall completely discharge the Company from all liability

with respect to such benefit.

 

 

ARTICLE 7

GENERAL

LIMITATIONS

 

7.1

                              INSURANCE. The

Company may acquire an insurance policy on the life of the Director. The

Company will be the owner and beneficiary of the policy.

 

7.2                               SUICIDE. The

Company shall not pay any benefit under this Agreement exceeding the Deferral

Account if the Director commits suicide within three years after the date of

this Agreement.  In addition, the

Company shall not pay any benefit under this Agreement if the Director has made

any material misstatement of fact on a resume provided to the Company, or on

any application for any benefits provided by the Company to the Director.

 

7.3                               GENERAL. Notwithstanding

anything to the contrary contained in this Agreement, the Director is entitled

to only one benefit which shall be determined by the first event to occur which

is dealt with by this Agreement. Subsequent occurrence of events dealt with by

this Agreement shall not entitle the Director or his or her beneficiaries to

other or further benefits under this Agreement.

 

7.4                               TAX CONSEQUENCES. The

Company does not insure or guarantee the tax consequences of payments provided

hereunder for matters beyond its control, and the Director certifies that his

decision to reduce and defer to receive his compensation is not due to any

reliance upon financial, tax or legal advice given by the Company, and of its

employees, agents, accountants or legal advisors.

 

7.5                                 TERMINATION FOR

CAUSE. Notwithstanding any provision of this Agreement to the contrary, the

Company shall not pay any benefit under this Agreement that is in excess of the

Director’s Deferrals (i.e., the interest earned on the Deferred

Account) if the Director’s Termination of Service results from Termination for

Cause.  The Director’s Deferrals shall

be paid to the Director in a manner to be determined by the Company.  No interest shall be credited on the Deferrals

during any applicable installment period.

 

8

 

ARTICLE 8

CLAIMS AND

REVIEW PROCEDURES

 

8.1                               CLAIMS

PROCEDURE. The Company shall notify any person or entity that makes a claim for

benefits under this Agreement (the “Claimant”) in writing, within 90 days of

Claimant’s written application for benefits, of his or her eligibility or

noneligibility for benefits under the Agreement.  If the Company determines that the Claimant is not eligible for

benefits or full benefits, the notice shall set forth (a) the specific reasons

for such denial, (b) a specific reference to the provisions of the Agreement on

which the denial is based, (c) a description of any additional information or

material necessary for the Claimant to perfect his or her claim, and a

description of why it is needed, and (d) an explanation of the Agreement’s

claims review procedure and other appropriate information as to the steps to be

taken if the Claimant wishes to have the claim reviewed.   If the Company determines that there are special

circumstances requiring additional time to make a decision, the Company shall

notify the Claimant of the special circumstances and the date by which a

decision is expected to be made, and may extend the time for up to an

additional 90 days.

 

 

8.2                               REVIEW

PROCEDURE. If the Claimant is determined by the Company not to be eligible for

benefits, or if the Claimant believes that he or she is entitled to greater or

different benefits, the Claimant shall have the opportunity to have such claim

reviewed by the Company by filing a petition for review with the Company within

60 days after receipt of the notice issued by the Company.  Said petition shall state the specific

reasons, which the Claimant believes entitle him or her to benefits or to

greater or different benefits.  Within

60 days after receipt by the Company of the petition, the Company shall afford

the Claimant (and counsel, if any) an opportunity to present his or her

position to the Company verbally or in writing, and the Claimant (or counsel)

shall have the right to review the pertinent documents.  The Company shall notify the Claimant of its

decision in writing within the 60-day period, stating specifically the basis of

its decision, written in a manner to be understood by the Claimant and the specific

provisions for the Agreement on which the decision is based.  If, because of the need for a hearing, the

sixty-day period is not sufficient, the decision may be deferred for up to

another 60 days at the election of the Company, but notice of this deferral

shall be given to the Claimant.

 

 

9

 

ARTICLE 9

AMENDMENTS

AND TERMINATION

 

The Company may amend or terminate this Agreement at any time prior to

the Director’s Termination of Service by written notice to the Director. In no

event shall this Agreement be terminated without payment to the Director of the

Deferral Account balance attributable to the Director’s Deferrals and interest

credited on such amounts unless the Agreement terminates as a result of

Termination for Cause in which event the Director forfeits the interest

credited on the Director’s Deferrals.

 

 

ARTICLE 10

 MISCELLANEOUS

 

10.1                         BINDING EFFECT.

This Agreement shall bind the Director and the Company, and their

beneficiaries, successors and assigns, survivors, executors, administrators and

transferees.

 

10.2                           NO GUARANTEE OF

SERVICE. This Agreement is not a contract for services. It does not give the

Director the right to remain a director of the Company, nor does it interfere

with the shareholders’ rights to replace the Director. It also does not require

the Director to remain a director nor interfere with the Director’s right to

terminate services at any time.

 

10.3                           NON-TRANSFERABILITY.

Benefits under this Agreement cannot be sold, transferred, assigned, pledged,

attached or encumbered in any manner.

 

10.4                         TAX

WITHHOLDING. The Company shall withhold any taxes that are required to be

withheld from the benefits provided under this Agreement.

 

10.5                         APPLICABLE LAW.

The Agreement and all rights hereunder shall be governed by the laws of

California except to the extent preempted by the laws of the United States of

America.

 

10.6                         UNFUNDED

ARRANGEMENT. The Director and beneficiary are general unsecured creditors of

the Company for the payment of benefits under this Agreement. The benefits

represent the mere promise by the Company to pay such benefits. The rights to

benefits are not subject in any manner to anticipation, alienation, sale,

transfer, assignment, pledge, encumbrance, attachment, or garnishment by

creditors. Any insurance on the Director’s life is a general asset of the

Company to which the Director and beneficiary have no preferred or secured

claim.

 

l0.7                            ENTIRE

AGREEMENT. This Agreement constitutes the entire agreement between the Company

and the Director as to the subject matter hereof. No rights are granted to the

Director by virtue of this Agreement other than those specifically set forth

herein.

 

10

 

10.8                       ADMINISTRATION. The Company

shall have powers which are necessary to administer this Agreement, including

but not limited to:

 

10.8.1      Interpreting the

provisions of the Agreement;

 

10.8.2      Establishing and

revising the method of accounting for the Agreement;

 

10.8.3      Maintaining a record

of benefit payments; and

 

10.8.4       Establishing rules

and prescribing any forms necessary or desirable to administer the Agreement.

 

10.9                           NAMED

FIDUCIARY. The Company shall be the named fiduciary and plan administrator

under the Agreement.  The named

fiduciary may delegate to others certain aspects of the management and

operation responsibilities of the plan including the service of advisors and

the delegation of ministerial duties to qualified individuals.

 

IN WITNESS WHEREOF, the Director and a duly authorized Company officer

have signed this Agreement.

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  COMPANY:

  	

   

  
	

  DIRECTOR

  	

   

  	

   

  	

   

  	

   

  	

  CLOVIS COMMUNITY BANK

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Daniel J. Doyle

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Its:

  	

  President & Chief Executive

  Officer

  
										

 

 

11

 

EXHIBIT A

 

TO

SECOND AMENDED AND RESTATED

DIRECTOR DEFERRED FEE AGREEMENT

 

Deferral Election

 

I elect to defer fees under my Second Amended and Restated Director

Deferred Fee Agreement with CLOVIS COMMUNITY BANK, as follows:

 

	

  Amount of Deferral

  	

   

  	

  Frequency of Deferral

  	

   

  	

  Duration

  
	

  (Initial

  and Complete One)

  	

   

  	

  (Initial

  One

  	

   

  	

  (Initial

  One)

  
	

  ý

  	

  I elect to defer 100% of Fees

  	

   

  	

  o

  	

  Beginning of Year  

  	

   

  	

  o

  	

  This year only  

  
	

  o

  	

  I elect to defer $    of Fees

  	

   

  	

  ý

  	

  Each fee period  

  	

   

  	

  o

  	

  For      Years  

  
	

  o

  	

  I elect not to defer Fees

  	

   

  	

  o

  	

  End of year

  	

   

  	

  ý

  	

  Until Termination of Service  

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  o

  	

  Until ____________________
  (date)

  

 

I understand that I may change the amount, frequency and duration of my

deferrals by filing a new election form with CLOVIS COMMUNITY BANK and

obtaining written approval of the Board of Directors of CLOVIS COMMUNITY BANK;

provided, however, that any subsequent election will not be effective until the

calendar year following the year in which the new election is received by

CLOVIS COMMUNITY BANK.

 

Form of Benefit

 

I elect to receive benefits under the Agreement in the following form:

 

[Initial One]

 

           Lump Sum

 

           Equal monthly

installments for One Hundred Twenty (    

) months

 

I understand that I may not change the form of benefit elected, even if

I later change the amount of my deferrals under the Agreement without written

approval of the Board of Directors of CLOVIS COMMUNITY BANK.

 

12

 

Beneficiary Designation

 

I designate the following as beneficiary of benefits under the Second

Amended and Restated Director Deferred Fee Agreement payable following my

death:

 

	

  Primary:

  	

   

  
	

   

  	

   

  
	

  Contingent:

  	

   

  
	

   

  
	

  NOTE: To name a trust as

  beneficiary, please provide the name of the trustee and the exact date

  of the trust agreement.

  

 

I understand that I may change these beneficiary designations by filing

a new written designation with CLOVIS COMMUNITY BANK.  I further understand that the designations will be automatically

revoked if the beneficiary predeceases me, or, if I have named my spouse as

beneficiary, in the event of the dissolution of our marriage.

 

	

  Signature:

  

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Date:      

  	

   

  	

  ,

  2002

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Accepted

  by CLOVIS COMMUNITY BANK

  
	

  this         

  	

   

  	

  day

  of

  	

   

  	

  2002

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  
	

   

  	

  Daniel

  J. Doyle

  	

   

  
	

  Title:

  

  	

  President

  & Chief Executive Officer

  	

   

  
						

 

 

13

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