Document:

Lease between Canyon National Bank and Smoke Tree Village

 Exhibit 10.6 
 SMOKE TREE VILLAGE SHOPPING 
 CENTER SINGLE TENANT 
 COMMERCIAL LEASE 
 Re: Canyon
National Bank 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
		  	I. Basic Lease Terms	  	
			
	1.	  	Defined Terms	  	1
			
	2.	  	Premises	  	2
			
	3.	  	Term	  	3
			
	4.	  	Use, Uses Prohibited	  	4
			
	5.	  	Rent	  	5
			
	6.	  	Security Deposit	  	6
			
		  	II. General Lease Terms	  	
			
	1.	  	Taxes; Assessments	  	8
			
	2.	  	Common Areas	  	10
			
	3.	  	Improvements	  	12
			
	4.	  	Alterations	  	13
			
	5.	  	Mechanic Liens	  	13
			
	6.	  	Landlord’s Maintenance	  	14
			
	7.	  	Tenant’s Maintenance	  	15
			
	8.	  	Utility Services	  	16
			
	9.	  	Late Charge	  	16
			
	10.	  	Indemnity and Exculpation	  	17
			
	11.	  	Insurance	  	18
			
	12.	  	Damage or Destruction; Restoration	  	20
			
	13.	  	Assignment and Subletting	  	22
			
	14.	  	Default	  	24
			
	15.	  	Remedies	  	24
			
	16.	  	Right to Enter Premises	  	26
			
	17.	  	Right to Re-Enter	  	27

  

 i 

 LEASE 
 This lease (“Lease”) is dated for reference purposes 2/10, 1998, between THE JAMES W. WOOD TRUST, doing business as Smoke Tree Village Shopping Center (“Landlord”) and CANYON NATIONAL
BANK, a Bank Corporation, in formation (“Tenant”) as follows: 
 I. BASIC LEASE TERMS 
 1. DEFINED TERMS: As used in this Lease, the following capitalized terms have the meaning described: 
 1.1. Ground Lease. The lease between Landlord, and Smoke Tree, Inc., a California corporation (“Master Ground Lessor”) for the
unimproved property described on Exhibit “1”, (the “Real Property”). 
 1.2 Improvements. The improvements
constructed on the Real Property which are owned by Landlord, commonly referred to as 1711 East Palm Canyon Drive, Palm Springs, California 92264. 
 1.3 Premises. Collectively the Real Property and Improvements. 
 1.3.1 Exclusive Area. Interior of
building improvements on the Premises of approximately 7200 sq. ft. (main building and teller drive through area). 
 1.3.2
Non-Exclusive Area. The improvements outside the exterior walls of the buildings and teller drive through area, e.g. parking and drive areas, landscaping and walkways. 
 1.4 Use of Premises. The use of the Exclusive Area shall be limited to Bank and related financial services and no other purpose without the
written consent of Landlord. 
 1.5 Commencement Date. July 1, 1998, subject to adjustment as provided in Paragraph 3.1 of the Basic
Lease Terms. 
  

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 1.6 Term. Collectively the Initial Term six (6) years, and two (2) Option Terms of six
(6) years each, as provided in Paragraph 3.2 of the Basic Lease Terms. 
 1.7 Rent. 
 1.7.1 Minimum Rent. $4,146.00 per month, subject to Adjustment described in Paragraph 5.1 of the Basic Lease Terms. 
 1.7.2 Minimum Rent Increase. Annually, each year during the Term, a Minimum Rent increase as described in Paragraph 5.2 of the
Basic Lease Terms. 
 1.8 Common Area. The area defined in Paragraph 2.1 of the General Lease Terms. 
 1.9 Addresses for Payments and Notices. 
  

			
	 Landlord
	  	 Tenant

		
	 J. W. Wood Trust
	  	 Canyon National Bank

	 1729 E. Palm Canyon Drive
	  	 P. O. Box 1521

	 Suite 117
	  	 Palm Springs, CA 92263

	 Palm Springs, CA 92264
	  	

 1.10 Security Deposit. Tenant shall pay to Landlord a Security Deposit of $7,000.00 as
described in Paragraph 6 of the Basic Lease Terms. 
 2. PREMISES: 
 2.1. Premises. Landlord leases to Tenant and Tenant rents from Landlord the Premises identified in subparagraph 1.3 above, and shown cross-hatched on the attached Plot Plan marked Exhibit “2.”.

 2.2 Acceptance of Premises. Tenant acknowledges neither Landlord nor any representative of Landlord has made any representations or
warranties with respect to the Premises or the suitability or fitness for any purpose, except as set forth in this Lease. Except for completion of Landlord’s Improvements, as hereinafter set forth, the taking of possession or use of the
Premises by Tenant for any purpose shall conclusively establish the Premises 

  

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were in satisfactory condition and in conformity with the provisions of this Lease in all respect. By taking possession of the Exclusive Area on the
Commencement Date or Free Rent Period, Tenant accepts the Improvements in their existing condition (“AS IS”), and waives any right or claim against Landlord arising out of the condition of the Premises. 
 3. TERM. 
 3.1 Initial Term. Provided the
Office of the Comptroller of the Currency and the FDIC approve the Premises, the Tenants Charter and FDIC Insurance, the Initial Term shall be for a period of six (6) years commencing on July 1, 1998. The Initial Term does not include the
early possession (Section 3.3 of the Basic Lease Terms) or Free Rent Period (Section 5.3 of the Basic Lease Terms) periods (“Commencement Date”). 
 3.2 Option to Extend Term. Tenant may extend the Initial Term of this Lease for two (2) consecutive options (collectively, “Extension Options”) for a period of six (6) years each
(collectively “Option Terms” and individually “Option Term”) on the same terms and conditions as provided in this Lease. 
 3.2.1 An Extension Option must be exercised, if at all, by written notice (“Extension Notice”) delivered by Tenant to Landlord not later than the date which is one hundred eighty (180) days prior to the
expiration of the then current term of the Lease. Each Extension Option shall, at Landlord’s sole option, not be deemed properly exercised if at the time such Extension Option is exercised or on the scheduled Commencement Date for the Option
Term, Tenant is in default (notice of which has been given to Tenant by Landlord) on the date the Extension Notice is given, or on the date the Option Term is to commence. 
 3.3 Early Possession. Upon approval by Landlord of Tenant’s plans for Tenant’s Improvements as provided in Paragraph 3.1 of the General
Lease Terms, and Tenant having obtained the necessary approvals from the Office of the Comptroller of the Currency and the FDIC, and necessary approvals and permits for construction, Landlord shall give Tenant early possession of the Premises for
the purpose of construction of Tenant’s Improvements. During 

  

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the period of early possession prior to the Commencement Date, Tenant shall have no obligation to pay Landlord Minimum Rent, but shall be obligated to
provide Tenant’s insurance and pay the Utility Expenses as provided in Paragraphs 11 and 8, respectively, of the General Lease Terms. 
 4. USE; USES
PROHIBITED. 
 4.1 Limitation on Use. Tenant’s Use of the Premises shall be as stated in subparagraph 1.4 of the Basic Lease
Terms, and for no other Use without Landlord’s consent. 
 4.2 Trade Name. Tenant shall conduct its business at the Premises
under the trade name of CANYON NATIONAL BANK. 
 4.3 Covenant of Continuous Operation. Tenant shall continuously use or cause to be
used the Premises and portions thereof for the Use specified in this Lease and shall continuously keep the Premises open for business during all usual business hours and on all bank business days, as banks in the Palm Springs area are open for
business. Tenant shall not be obligated to conduct business on national banking holidays. 
 4.4 [This section intentionally omitted]

 4.5 Cancellation of Insurance; Increase in Insurance Rates. Tenant shall not do, bring, or keep anything in, on, or about the
Premises that will cause a cancellation of any insurance covering the Improvements on the Premises. If the rate of any insurance carried by Landlord is increased as a result of Tenant’s use, Tenant shall pay to Landlord within ten
(10) days before the Landlord is obligated to pay a premium on the insurance, or within ten (10) days after Landlord delivers to Tenant a certified statement from Landlord’s insurance carrier stating that the rate increase was caused
solely by an activity of Tenant on the Premises, whichever date is later, a sum equal to the difference between the original premium and the increased premium. 
 4.6 Licenses. Tenant shall at all times maintain appropriate governmental business licenses, permits or certificates required in the conduct of its business on the Premises and 

  

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comply with all laws (city, county, state, federal, including regulatory agencies of each) concerning the Premises or Tenant’s use of the Premises,
including, without limitation, wages and hours of employment, occupational safety, fire, health, and sanitation. 
 4.7 Americans with
Disabilities Act. Tenant shall have and be allocated the sole responsibility to comply with the Americans with Disabilities Act (“ADA”) with respect to Use of the Exclusive Area of the Premises and Tenant shall defend, indemnify, and hold
harmless Landlord, its officials and employees harmless from and against all claims of failure to comply with or violation of the ADA. 
 5. RENT. All
rent shall be paid to Landlord without deduction, offset, prior notice or demand at the address described in subparagraph 1.9 of the Basic Lease Terms. 
 5.1 Minimum Rent. In advance on the first (1st) day of each calendar month during the Term, Tenant shall pay to Landlord as Minimum Rent the sum of $4,146.00 per month. Minimum Rent for the initial and
terminal fractions of a month (if any) shall be pro rated on the basis of a thirty (30) day month. 
 5.2 Minimum Rent
Adjustment. Minimum Rent shall be subject to adjustment on the first day of the thirteenth (13) month following commencement of the Term and on the first day of the same month each and every year thereafter (each an “Adjustment
Date”), as follows: The base for computing the adjustment is the Regional Consumer Price Index (All Urban Consumers), Los Angeles-Anaheim-Riverside, base year 1982-1984 = 100, published by the United States Department of Labor, Bureau of Labor
Statistics (“Index”), which is published for the month three (3) months prior to the Commencement Date (“Beginning Index”). If the Index published for the third month immediately preceding the Adjustment Date
(“Extension Index”) as increased over the Beginning Index, the Minimum Rent for the succeeding one (1) year period shall be set by multiplying $4,146.00 by a fraction the numerator of which is the Extension Index and the denominator
of which is the Beginning 

  

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Index. If the Index is changed so that the base year differs from that referenced above, the Index shall be converted in accordance with the conversion
factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the Term, such other government index or computation with which it is replaced, or if none, a comparable private
index, shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. 
 Notwithstanding the foregoing, each Minimum Rent Adjustment shall not exceed four percent (4%) (Maximum Increase) and shall be not less than one and one-half percent (1-1/2%) (Minimum Increase) than the Minimum
Rent for the last month immediately preceding each Adjustment Date. 
 5.3. Free Rent Period. After completion of Tenant’s
Improvements and obtaining approval by the Comptroller of the Currency and FDIC, Tenant may commence to do business in the Premises without payment of Minimum Rent until the Commencement Date (“Free Rent Period”). Tenant shall be
obligated, however, to pay all other charges and perform all other obligations, provided in this Lease to be paid or performed by Tenant during the Term (e.g. Common Area Costs, Taxes, Utilities, Tenant’s Maintenance, Tenant’s Insurance,
etc.). 
 6. SECURITY DEPOSIT. On execution of this Lease, Tenant shall deposit with Landlord a sum of $7,000.00 as a security deposit for the
performance by Tenant of the provisions of this Lease. If Tenant is in default, Landlord can use the security deposit, or any portion of it, to cure the default or to compensate Landlord for all damage sustained by Landlord resulting from
Tenant’s default. Tenant shall immediately on demand pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially
deposited with Landlord. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return the security deposit to Tenant. Landlord’s obligations with respect to the security deposit are those of a debtor not a
trustee. Landlord can maintain the security deposit separate and apart from Landlord’s general funds or can commingle the 

  

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security deposit with Landlord’s general and other funds. Landlord shall not be required to pay Tenant interest on the security deposit. 
 [Remainder of this page intentionally left blank] 
  

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 II. GENERAL LEASE TERMS 
 1. TAXES; ASSESSMENTS. 
 1.1 Personal Property Taxes. Tenant shall pay before delinquency all
taxes, assessments, license fees, and other charges (“Taxes”) that are levied and assessed against Tenant’s personal property installed or located in or on the Premises, and that become payable during the Term. On demand by Landlord,
Tenant shall furnish Landlord with satisfactory evidence of these payments. 
 If any taxes on Tenant’s personal property
are levied against Landlord or Landlord’s property, or if the assessed value of the building and other improvements in which the Premises are located is increased by the inclusion of a value placed on Tenant’s personal property, and if
Landlord pays the taxes on any of these items or the taxes based on the increased assessment of these items, Tenant, on demand, shall immediately reimburse Landlord for the sum of the taxes levied against Landlord, or the proportion of the taxes
resulting from the increase in Landlord’s assessment. Landlord shall have the right to pay these taxes regardless of the validity of the levy. 
 1.2 Real Property Taxes. Tenant shall pay to Landlord all real property taxes and general and special assessments (“Real Property Taxes”) levied and assessed against the Premises. Landlord shall notify Tenant of the Real
Property Taxes and together with such notice shall furnish Tenant with a copy of the tax bill. Tenant shall pay to Landlord the Real Property Taxes semiannually not later than twenty (20) days before the taxing authority’s delinquency date
or thirty (30) days after receipt of the tax bill, whichever is later. 
 Real Property Taxes shall be prorated on the
basis of a 365 day year to account for any fractional portion of a fiscal tax year included in the Term at its commencement and expiration. For the purpose of this Lease, a possessory interest tax shall be deemed Real Property Taxes) 
  

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 1.3 Substitute Taxes. Tenant shall not be required to pay any municipal, county, state, or federal
income or franchise taxes of Landlord, or any municipal, county, state or federal estate, succession, inheritance, or transfer taxes of Landlord. If at any time during the Term the laws concerning the methods of real property taxation prevailing at
the commencement of the Term are changed so that a tax or excise on rents or any other such tax, however described, is levied or assessed against Landlord as a direct substitution in whole or in part for any Real Property Taxes, Tenant shall pay
before delinquency (but only to the extent it can be ascertained that there has been a substitution and that as a result Tenant has been relieved from the payment of Real Property Taxes it would otherwise have been obligated to pay) the substitute
tax or excise on rents. Tenant’s share of any tax or excise on rent shall be substantially the same as, and a substitute for, the payment of such Real Property Taxes as provided in this Lease. 
 1.4 Tenant’s Right to Contest Taxes. Tenant at its cost shall have the right, at any time, to seek a reduction in the assessed valuation of
the Premises, or to contest any Real Property Taxes that are to be paid by Tenant. If Tenant seeks a reduction or contests the Real Property Taxes, the failure on Tenant’s part to pay its share of any Real Property Taxes shall not constitute a
default as long as Tenant complies with the provisions of this paragraph. 
 Landlord shall not be required to join in any
proceeding or contest brought by Tenant unless the provisions of any law require that the proceeding or contest be brought by or in the name of Landlord or any owner of the Premises. In that case, Landlord shall join in the proceeding or contest or
permit it to be brought in Landlord’s name as long as Landlord is not required to bear any cost. Tenant, on final determination of the proceeding or contest, shall immediately pay or discharge the Real Property Taxes determined by any decision
or judgment rendered, together with all costs, charges, interest, and penalties incidental to the decision or judgment. 
 If
Tenant does not pay the Real Property Taxes when due and Tenant seeks a reduction or contests them as provided in this paragraph, before the commencement of the proceeding or contest Tenant shall furnish to Landlord a surety bond issued by an
insurance 

  

 9 

 
company qualified to do business in California. The amount of the bond shall equal one hundred twenty-five (125%) percent of the total amount of Real
Property Taxes in dispute. The bond shall hold Landlord, Master Ground Lessor and the Premises harmless from any damage arising out of the proceeding or contest and shall insure the payment of any judgment that may be rendered. 
 If any Real Property Taxes paid by Tenant are refunded to Landlord, the amount of such refund shall be paid or credited by Landlord to
Tenant. 
 2. COMMON AREAS. 
 2.1
Common Area Defined. The term “Common Area” shall mean the Non-Exclusive Area of the premises and such other contiguous parking area operated by Landlord. 
 2.2 Tenant’s Right to Use. Tenant shall have the non-exclusive right during the Term of this Lease to use the Common Areas for itself, its
employees, agents, customers, invitees and licensees. 
 2.3 Maintenance and Management. All Common Areas shall be subject to the
exclusive control and management of Landlord or such other persons or nominees as Landlord may have delegated or assigned to exercise such management or control, in whole or in part, in Landlord’s place and stead. In no event shall Tenant have
right to sell or solicit in any manner in any of the Common Areas. 
 2.3.1 Landlord shall have the right to close, if
necessary, all or any portion of the Common Areas to such extent as may in the opinion of Landlord’s counsel be legally necessary to prevent a dedication thereof or the accrual of any rights of any person or of the public therein; to close
temporarily all or any portion of the Common Areas to discourage non-customer use; to use portions of the Common Areas while engaged in making additional improvements or repairs or alterations to the Premises; and to do and perform such other acts
in, to, and with respect to, the Common Areas as in the use of good business judgment Landlord shall determine to be appropriate. 
  

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 2.3.2 Landlord shall have the right to increase the size of the Common Areas, including
the expansion thereof to adjacent property; to reduce the Common Area other than the Non-Exclusive Area; to rearrange the parking spaces and improvements on the Common Areas’ to designate exclusive (reserved) or restricted parking; and to make
such other changes from time to time which in its opinion are deemed to be desirable and for the best interests of all persons using the Common Areas. 
 2.3.3 Tenant agrees that it and its concessionaires, agent, employees, and vendors, suppliers and other independent contractors will use such access roads and will operate trucks and trailers making delivers or pick
ups to and from the Premises upon and over such access roads as are designated therefor by Landlord as a means of ingress to and egress from the Premises. 
 2.3.4 Landlord shall have the right to establish, and from time to time to change, alter and amend, and to enforce against Tenant and the other users of the Common Areas such reasonable rules and regulations as may be
deemed necessary or advisable for the proper and efficient operation and maintenance of the Common Area. Such rules and regulations may provide, without limitation, the hours during which the Common Areas shall be open for use. Landlord may, if in
its opinion the same be advisable, establish system or systems of validation or other type operation to control parking checks of users. Tenant agrees to abide by and conform to such rules and regulations; to cause its concessionaires, employees and
agents, so to abide and conform; and to use its best efforts to cause its customers, invitees and licensees to so abide and conform. 
 2.3.5 Notwithstanding any provision of this Paragraph 2.3 or any of its subparagraphs, Landlord agrees not to voluntarily change the present parking use of the Common Area with 125 feet of the Exclusive Area. 
 2.4 Maintenance and Expense of Common Areas. During the term of this Lease Landlord shall keep or cause the common areas to be kept in a neat,
clean and orderly condition, properly lighted and landscaped, and shall repair any damage to the facilities thereof and shall pay all cost and expense incurred; and, an amount equal to fifteen (15%) 

  

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percent of Tenant’s Common Area Cost shall be paid to Landlord for Landlord’s administration and supervision of the Common Areas (Management Fee).

 2.5 Tenant’s Common Area Costs. In addition to the rent provided in Paragraph 5 of the Basic Lease Terms, Tenant shall pay to
Landlord monthly: 
 2.5.1 The sum of $1,913.00 as Tenant’s Common Area Cost, plus the Management Fee (Total $2,200.00);
and 
 2.5.2 The sum of $174 for Landlord’s Special Utility Expense (Paragraph 6.4 of the General Lease Terms) plus a 15%
Management Fee (Total $200). 
 2.6 Annual Adjustment. On each Adjustment Date, Tenant’s monthly Common Area Cost and
Landlord’s Special Utility Expense shall be adjusted in the same manner provided for increase in the Minimum Rent (Paragraph 5.2 of the Basic Lease Terms), including Minimum and Maximum Adjustment. The 15% Management Fee shall be added to each
such adjustment. 
 3. IMPROVEMENTS. 
 3.1 Tenant’s Improvements. 
 3.1.1 Plans and Specifications. Within ninety
(90) days after the execution of this Lease, Tenant at its sole cost and expense shall provide Landlord with the plans and specifications for tenant’s improvements to the Exclusive Area of the Premises (“Tenant Improvements”).
The plans and specifications shall provide for construction of Tenant’s Improvements in accordance with applicable building codes. 
 3.1.2 Approval by Landlord. Landlord’s approval of Tenant’s plans and specifications shall not be unreasonably withheld or delayed. Any change in Tenant’s plans and specifications shall likewise
be submitted to Landlord for approval. 
 3.1.3 Completion of Tenant’s Improvements. Tenant’s improvements
shall be completed on or before the Commencement Date. 
  

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 3.2 Notice. Tenant shall give Landlord twenty (20) days notice prior to commencement of
construction of Tenant Improvements. Said notice shall be in writing and shall state the date construction of Tenant Improvements are to commence so that Landlord can post and record an appropriate notice of non-responsibility. 
 3.3 Labor and Material Bond. Landlord, at Landlord’s option may require, prior to commencement of construction of Tenant’s Improvements
that Tenant procure and deliver to Landlord a Labor and Material Bond in an amount satisfactory to Landlord, which shall name Landlord and Master Ground Lessor. 
 3.4 Landlord’s Improvements. Landlord shall, at Landlord’s sole cost and expense, perform the work described on Exhibit “3” (“Landlord’s Improvements”). Landlord’s
Improvements shall be substantially completed prior to the Commencement Date. 
 4. ALTERATIONS. Except as provided for in Tenant’s Improvements
in Paragraph 3.1 of the General Lease Terms, Tenant shall not make any Alterations to the Exclusive Area of the Premises in excess of $25,000.00, without Landlord’s consent. Any Alterations made shall remain on and be surrendered with the
Premises on expiration or termination of this Lease, except Landlord can elect within thirty (30) days before expiration of this Lease or within five (5) days after termination or expiration to require Tenant to remove any Alterations that
Tenant has made to the Premises. If Landlord so elects, Tenant at its cost shall restore the Premises to the condition designated by Landlord in its election, before the last day of the Term or within thirty (30) days after Notice of Election
is given, whichever is later. Prior to commencement of any Alterations to the Premises by Tenant, Tenant shall give notice to Landlord as provided in subparagraph 3.3 of the General Lease Terms, and if required by Landlord, a Labor and Material Bond
as provided in subparagraph 3.4 of the General Lease Terms. 
 5. MECHANIC LIENS. 
 5.1 Indemnify and Hold Harmless. Tenant shall at all times indemnify and save 

  

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Landlord and Master Ground Lessor harmless from all claims arising by the acts and conduct of Tenant for labor or materials in connection with construction,
repair, alteration, or installation of structures, Tenant’s Improvements, equipment, or facilities upon the Premises, and from the cost of defending against such claims, including attorney’s fees. 
 5.2 Release of Lien. In the event a lien is imposed upon the Premises as a result of such construction, repair, alteration, or installation,
Tenant shall either: 
 5.2.1 Record a valid Release of Lien; or 
 5.2.2 Deposit with Landlord cash in an amount equal to 125% of the amount of the lien and authorize payment to the extent of said deposit
to any subsequent judgment holder that may arise as a matter of public record from litigation with regard to lienholder’s claim; or 
 5.2.3 Procure and record a bond in accordance with Section 3143 of the California Civil Code, which frees the Premises from the claim of the lien and from any action brought to foreclose the lien. 
 5.3 Default. Should Tenant fail to accomplish one of the above within fifteen (15) days after the filing of such a lien, the Lease shall be
in default and this Lease shall be subject to immediate termination. 
 6. LANDLORD’S MAINTENANCE. Except as may otherwise be provided in this
Lease, Landlord, at its cost, shall maintain in good condition the following: 
 6.1 Structural. The structural parts of the building
and other improvements on the Non-Exclusive Area of the Premises and teller drive through area, which structural parts include the foundations, bearing and exterior walls, subflooring and roof, but excluding glass and doors. 
 6.2 Utilities. That portion of the Utility Services, plumbing and sewage systems lying inside the interior walls of the Premises, which were not
installed by Tenant. 
  

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 6.3 Roof. The roof, gutters, and downspouts. 
 6.4 Heating and Air Conditioning. The heating and air conditioning system and interior ceiling fluorescent lights and fixtures
(“Landlord’s Special Utility Expense”). 
 6.5 Damage Repair. Subject to the provisions of Paragraph 12 of the General
Lease Terms, Damage and Destruction, to the extent not covered by Landlord’s or Tenant’s insurance, Landlord shall repair the Premises if they are damaged by (a) causes outside the Premises over which the Tenant has no control;
(b) acts or omissions of Landlord, or its authorized representatives; or (c) Landlord’s failure to perform its obligations under this paragraph. 
 7. TENANT’S MAINTENANCE. Tenant, at its cost, shall, to the satisfaction of Landlord, keep and maintain the Exclusive Area of the Premises and all improvements of any kind which may be constructed, installed, or made thereon by
Tenant in good condition and in substantial repair. It shall be Tenant’s responsibility to take all steps necessary or appropriate to maintain such a standard of condition and repair. Tenant expressly agrees to maintain the Exclusive Area of
the Premises in a safe, clean, wholesome and sanitary condition, to the complete satisfaction of Landlord and in compliance with all applicable laws. If required by Landlord, Tenant further agrees to provide separate approved containers for trash
and garbage. Tenant shall keep the Exclusive Area of the Premises free and clear of rubbish and litter. During regular business hours of Tenant, Landlord shall have the right to enter upon and inspect the Exclusive Area of the Premises at any time
for cleanliness and safety. Tenant shall designate in writing to Landlord a representative who shall be responsible for the day-today operation and level of maintenance, cleanliness, and general order. Tenant’s Maintenance shall include without
limitation, the obligation to repair the doors, glass or otherwise, interior walls, ceilings, interior floor coverings, all of Tenant’s personal property, exterior signs, store fronts, all glass windows and window frames, interior and exterior,
and all electrical, utility lines, plumbing and sewage systems outside the interior walls of the Premises. Tenant shall be liable for any damage to the Premises resulting from the acts or omissions of Tenant or Tenant’s authorized
representative. 
  

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 7.1 Landlord’s Right to Repair: If Tenant fails to maintain or make repairs or replacements
as required herein, Landlord may notify Tenant in writing of said failure. Should Tenant fail to correct the situation within a reasonable time thereafter, as established by Landlord, Landlord may, but shall not be required to do so, make the
necessary correction and the cost thereof, including but not limited to the cost of labor, materials, and equipment and administration, shall be deemed additional rent to be paid by Tenant within ten (10) days of receipt of a statement of said
cost from Landlord. Landlord may, at its option, choose other remedies available herein, or by law. 
 8. UTILITY SERVICES. Tenant shall arrange and
pay for the installation and use of all gas, power, telephone, and electric current and all other utilities used by Tenant on the Premises from and after the delivery of possession thereof by Landlord (including the period of early possession). If
any such charges are not paid when due, Landlord may pay the same, and any amount so paid by Landlord shall thereupon become due to Landlord from Tenant as additional rent. Landlord shall not be liable for damages or otherwise for any failure or
interruption of any utility service being furnished the Premises, and no such failure or interruption shall entitle Tenant to terminate this Lease or to abate payment of any portion of the Rent due hereunder. Nothing contained in this Lease shall
limit Landlord in any way from granting or using easements on, across, and under the Premises for the purpose of providing utility services. 
 9. LATE
CHARGE; INTEREST. 
 9.1 Late Charge. Tenant acknowledges that late payment by Tenant to Landlord of Rent will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of such costs being extremely difficult and impracticable to fix. Such costs include, without limitation, processing and accounting charges, and late charges that may be imposed on 

  

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Landlord by the terms of the Master Ground Lease or any encumbrance and note secured by any encumbrance covering the Premises. Therefore, if any installment
of rent due from Tenant is not received by Landlord within ten (10) days when due, Tenant shall pay to Landlord an additional sum of five percent (5%) of the overdue rent as a late charge. The parties agree that this late charge represents
a fair and reasonable estimate of the costs that Landlord will incur by reason of late payment by Tenant. Acceptance of any late charge shall not constitute a waiver of Tenant’s default with respect to the overdue amount or prevent Landlord
from exercising any of the other rights and remedies available to Landlord. 
 9.2 Interest. Any sum due to Landlord from Tenant not
paid within 10 days of the date due shall bear interest at the highest rate per annum an individual is permitted by law to charge in the State of California from the date due until paid. 
 10. INDEMNITY AND EXCULPATION. 
 10.1 General Indemnity by Tenant. Tenant agrees to and shall
indemnify, defend and hold Landlord harmless from and against all liability, loss, damage, costs or expenses (including attorneys’ fees and court costs) arising from or as a result of the death of any person or any accident, injury, loss and
damage whatsoever caused to any person or to the property of any person which may arise out of the performance of Tenant’s obligations under this Lease, Tenant’s occupation of the Premises or any errors or omissions of Tenant, whether such
performance or errors or omissions be made by Tenant, its subtenants, concessionaires, contractors or subcontractors, or anyone directly or indirectly employed by Tenant and whether such damage shall accrue or be discovered before or after
termination of this Lease. The indemnify obligation of Tenant under this paragraph shall survive the expiration or termination, for any reason, of this Lease. 
 10.2 General Indemnity by Landlord. Likewise, Landlord agrees to and shall indemnify, defend and hold Tenant harmless from and against all liability, loss, damage, costs 

  

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or expenses (including attorneys’ fees and court costs) arising from or as a result of the death of any person or any accident, injury, loss and damage
whatsoever caused to any person or to the property of any person which may arise out of the performance of Landlord’s obligations under this Lease, Landlord’s occupation of the Premises or any errors or omissions of Landlord, whether such
performance or errors or omissions be made by Landlord, its subtenants, concessionaires, contractors or subcontractors, or anyone directly or indirectly employed by Landlord and whether such damage shall accrue or be discovered before or after
termination of this Lease. The indemnify obligation of Landlord under this paragraph shall survive the expiration or termination, for any reason, of this Lease. 
 11. INSURANCE. 
 11.1 Tenant’s Insurance. Concurrent with the execution of this Lease and in partial performance
of Tenant’s obligations hereunder, Tenant shall procure and maintain, at its cost, or cause to be maintained during the term of this Lease (including the period of early possession) and any extensions or renewals thereof, from insurers admitted
in California or having a minimum rating of or equivalent to A+ in Best’s Insurance Guide: 
 11.1.1 Comprehensive
General Liability Insurance with a combined single limit of at least Five Million Dollars ($5,000,000) for each occurrence including as may be appropriate for the use and occupancy of the Premises, products, garagekeepers legal liability and fire
legal liability coverage in amounts approved by Landlord. Landlord, its respective officials, employees, and agents shall be covered as additional insureds with respect to liability arising from activities performed by or on behalf of Tenant. Said
insurance shall be primary insurance with respect to Landlord and shall contain a cross liability endorsement. Tenant shall require Tenant’s contractors, concessionaires, and sublessees to include Landlord as an additional insured on all
general liability insurance covering work or activities on the Premises. 
  

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 11.1.2 “All Risk” personal property insurance including earthquake and flood if
available at reasonable cost in an amount sufficient to cover the full replacement value of Tenant’s improvements, personal property and equipment on the Premises. 
 11.1.3 [This Section Intentionally omitted] 
 11.1.4 Upon the execution of this Lease, Tenant shall deliver to Landlord certificates of insurance with original endorsements evidencing the coverage required by this Lease. The certificates and endorsements shall be
signed by a person authorized by the insurer to bind coverage on its behalf. Landlord reserves the right to require complete certified copies of all policies at any time. Tenant further agrees that if Tenant fails to furnish evidence of insurance as
provided in this paragraph, Landlord may obtain such insurance and the premium for such insurance shall be deemed additional rent to be paid by Tenant to Landlord upon demand. 
 11.1.5 Said insurance shall contain an endorsement requiring thirty (30) days’ prior written notice from insurers to Landlord
before cancellation or change of coverage. 
 11.1.6 Said insurance may provide for such deductibles or self-insured retention
as may be acceptable to the Landlord or its designee. In the event such insurance does provide for deductibles or self-insured retention, Tenant agrees that it will fully protect Landlord in the same manner as these interests would have been
protected had the policy or policies not contained a deductible or retention provisions. With respect to damage to property, Landlord and Tenant hereby waive all rights of subrogation, one against the other, but only to the extent that collectible
commercial insurance is available for said damage. 
 11.1.7 Not more frequently than every three (3) years, if in the
opinion of Landlord or of an insurance broker retained by Landlord, the amount of the foregoing insurance coverages is not adequate, Tenant shall increase the insurance coverage as required by Landlord. 
 11.1.8 The procuring of said insurance shall not be construed as a limitation on Tenant’s liability or as full performance on
Tenant’s part of the indemnification and hold harmless provisions of this Lease. 
  

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 11.1.9 Any modification or waiver of the insurance requirements herein shall only be made
with the written approval of Landlord. 
 11.2 Landlord’s Insurance. 
 Landlord, at its cost, shall maintain on the building and other improvements on the Premises not required by Tenant to be insured, an
“All Risk” property insurance, including earthquake and flood, if in Landlord’s opinion is available from responsible carriers at reasonable cost, and debris removal in an amount sufficient to cover the full replacement value of all
improvements constructed on the Premises. Landlord shall provide Tenant with evidence of such insurance. 
 11.3 Waiver. Landlord and
Tenant each release the other, and their respective authorized representatives, from any claims for damages to any person or to the Premises, and to the fixtures, personal property and Tenant Improvements, and the Improvements and Alterations of
either Landlord or Tenant in the Premises that are caused by or result from risks insured against under insurance policies carried by the parties and in force at the time of such damage. 
 12. DAMAGE OR DESTRUCTION; RESTORATION. 
 12.1 Insured Loss. If, during the Term of this
Lease, the Premises are totally or partially destroyed from any cause covered by insurance, they shall be restored as hereinafter provided, if the restoration can be completed within one hundred eighty (180) days after the date of the
destruction and such destruction shall not terminate this Lease. If it is determined the restoration cannot be made as herein provided, then, within fifteen (15) days after such determination, Tenant can terminate this Lease immediately by
giving notice to Landlord. If Tenant fails to terminate this Lease, Landlord, at its election, can either terminate this Lease or restore the Premises within a reasonable time and this Lease shall continue in full force and 

  

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effect. If existing laws to not permit the restoration, either party can terminate this Lease immediately by giving notice to the other party. 
 12.2 Uninsured Loss. If substantial damage effecting the Premises is due to any cause other than one covered by insurance, then either party may
terminate this Lease by giving thirty (30) day’s notice of termination. 
 12.3 Damage At End Of Term. Notwithstanding
subparagraph 12.1 of the General Lease Terms, if destruction requiring more than ninety (90) days but not less than one hundred eighty (180) days to restore the Premises occurs during the last year of the Initial Term or the last year of
an Option Term, and unexercised Option Terms remain, Landlord can terminate this Lease by giving notice to Tenant not more than thirty (30) days after the destruction. Provided, however, if Tenant within said thirty (30) days gives
Landlord an Extension Notice for the next Option Term, this Lease shall remain in full force and effect. 
 12.4 Restoration. In the
event of damage or destruction to be restored by either or both parties, the party having the duty to restore shall give notice to the other of the damage or destruction and the date of loss. The party having the duty to restore shall promptly make
proof of loss and proceed to collect all valid claims against their insurers or others for such damage or destruction. All amounts recovered for such claims by such parties shall be used for the restoration of the Premises to substantially the same
condition as they were immediately prior to such damage or destruction. Restoration shall be promptly commenced and diligently pursued to completion by each party. 
 12.5 Abatement or Reduction of Rent. In case of destruction there shall be an abatement or reduction of the Minimum Rent based on the extent to which the destruction interferes with Tenant’s Use of the
Premises. In the event such destruction entirely prevents Tenant’s Use of the Premises for conduct of Tenant’s business (100%), Tenant’s obligation to pay Landlord the other charges provided in this Lease shall also be abated. To the
extent Tenant occupies any portion or part of the Premises (Exclusive or Non-Exclusive) for the conduct of business the other charges shall not be abated. 
  

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 12.6 Bond. Prior to commencement of the restoration, if requested by Landlord, Tenant shall file
with Landlord a Labor and Material Bond as provided in subparagraph 3.3 in the amount of one hundred percent (100%) of the estimated cost of work to be performed by Tenant. 
 12.7 Notice. Tenant shall give Landlord notice twenty (20) days prior to commencement of work to enable Landlord to post and record notices
of non-responsibility for the work to be performed by Tenant. 
 13. ASSIGNMENT AND SUBLETTING. Except as hereinafter provided, Tenant shall not
assign or transfer this Lease or any interest therein, nor sublease the Premises or any part thereof (collectively “Transfer”) without the prior approval of Landlord which shall not be unreasonably withheld. The approval of Landlord to any
transfer shall not relieve Tenant of the obligation to obtain such approval to any further transfer. This Lease nor any interest therein shall be subject to transfer by attachment, execution, proceedings in insolvency or bankruptcy (voluntary or
involuntary), or receivership, unless such receivership is sought by a state or federal bank regulatory agency. In the event of Transfer, either voluntary or involuntary, or by operation of law, without the prior approval of Landlord, such transfer
shall be voidable at Landlord’s election, and if voided by Landlord, shall convey no interest in this Lease or the Premises and shall constitute a default of this Lease. 
 13.1 Merger, Consolidation, Etc. If Tenant is a corporation, Tenant may assign, merge, consolidate, or otherwise change its corporate form without
Landlord’s consent if the change is not related to a transaction involving only this Lease, and if the assignment, merger, or consolidation of Tenant does not result in a change of control. For example, if the corporation controlling Tenant is
merged or consolidated into or with a parent corporation, or if the corporation offers its shares to the public in a transaction registered under the Securities Act of 1933, where the ultimate control of Tenant remains with its existing
shareholders, 

  

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Landlord’s consent shall not be required unless Tenant makes such change or enters into such transaction solely to facilitate the transfer of this
Lease, in which case Landlord’s written consent shall be required. 
 13.2 Notice to Landlord. If Tenant desires a transfer, then
at least sixty (60) days prior to the date when Tenant desires the transfer to be effective (“Transfer Date”), Tenant shall notify Landlords stating the Transfer Date, the name, street address, telephone number, and business of the
proposed transferee (including details of its business experience), the terms and conditions of the proposed transfer, a statement whether the proposed transferee is an individual, partnership, or corporation, and if a partnership the name and
address of the general partners, and if a corporation, the names and addresses of the shareholders, officers and directors and the state of incorporation. Tenant shall demonstrate that the proposed transferee is financially responsible, capable of
meeting its credit obligations, including rent obligations, and experienced in operating the proposed business, to Landlord’s satisfaction as determined in Landlord’s good faith judgment, by providing financial statements (if required by
Landlord), bank references and such supplemental information as Landlord may thereafter request. 
 13.3 Withholding Consent. Landlord
and Tenant agree (by way of example and without limitation) that it shall be reasonable for Landlord to withhold Landlord’s consent if any of the following conditions exist or may exist: 
 13.3.1 The proposed transferee’s use of the Premises is any use other than provided in this Lease. 
 13.3.2 Tenant is in default under this Lease. 
 13.4 Assumption. Each permitted transferee shall assume and be deemed to have assumed this Lease and shall be jointly and severally liable with Tenant for the payment of rent and for the performance of the
terms, covenants, and conditions of this Lease. No permitted transfer shall be binding on Landlord until the transferee shall deliver to Landlord a counterpart of the transfer documents which shall contain a covenant of assumption by transferee.
However, the failure or refusal to execute such instrument of assumption shall not release transferee from liability as set forth herein. 
  

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 13.5 Notice to Tenant. Landlord shall notify Tenant thirty (30) days prior to the Transfer
Date whether Landlord approves or disapproves the proposed transfer. 
 13.6 Landlord’s Assignment. Landlord shall have the
absolute right to assign this Lease. 
 14. DEFAULT. The occurrence of any of the following acts shall constitute a default by Tenant: 
 14.1 Rent. Failure to pay rent when due if the failure continues after ten (10) day’s written notice to Tenant. 
 14.2 Abandonment. Abandonment of the Premises, providing that failure to occupy or operate the Premises or business thereon for ten
(10) consecutive days shall be deemed an abandonment except for conditions beyond Tenant’s reasonable control. 
 14.3 Covenants
and Conditions. Failure to perform any of the terms, covenants, or conditions of this Lease other than payment of Rent if said failure is not cured within thirty (30) days after notice to Tenant of said failure. If the default cannot
reasonably be cured in thirty (30) days, Tenant shall not be in be in default if Tenant begins to cure within the thirty- day period and diligently proceeds to cure to completion. 
 14.4 Prohibited Assignment. Any attempted assignment, transfer, or sublease except as approved by Landlord pursuant to Paragraph 13 of the General
Lease Terms. 
 15. REMEDIES. Upon the occurrence of any default, in addition to any other rights or remedies of Landlord hereunder, by law or in
equity, Landlord shall have the following rights and remedies: 
 15.1 Termination. Landlord may terminate this Lease by giving Tenant
notice of termination, and Tenant shall immediately surrender possession of the Premises in the manner hereinafter provided in subparagraph 20.6 of the General Lease Terms. Termination 

  

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hereunder shall not relieve Tenant from the payment of any sum due Landlord or any claim for damages. Landlord shall be entitled to recover from Tenant all
damages incurred by Landlord including but not limited to the cost of recovering possession, Expenses of reletting including renovation and alteration, reasonable attorney’s fees, real estate commissions paid, and (a) the worth at the time
of award of the unpaid rent which had been earned at the time of termination; (b) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of
such rent loss that the Tenant proves could have been reasonable avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the Lease term after the time of award exceeds the amount of such rent loss
that the Tenant proves could be reasonably avoided. The “worth at the time of award” in subparagraph (c) above is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the
award plus one percent (1%). The “worth at the time of award” in subparagraphs (a) and (b) above is computed by allowing interest at the maximum rate allowed by law. 
 15.2 Re-Entry. Without terminating this Lease Landlord may re-enter and relet the Premises or any part thereof for the account and in the name of
Tenant or otherwise. Any reletting may be for the remainder of the term or for a longer or shorter period. Landlord may execute subleases under this provision either in its name or in Tenant’s name, and shall be entitled to the rent from the
Premises. Tenant hereby appoints Landlord its attorney-in-fact for the purpose of such reletting. Tenant shall nevertheless pay to Landlord when due all sums required hereunder, plus Landlord’s expenses, including but not limited to remodeling,
commissions, and advertising, less the sum received by Landlord from any reletting. No act by Landlord under this provision shall constitute termination of this Lease unless and until Landlord gives Tenant notice of termination. 
 15.3 [This section intentionally omitted] 
 15.4 Landlord’s Cure. Landlord, after Tenant defaults, can cure the default at Tenant’s cost, provided that the default is not a failure to pay rent. If Landlord does cure 

  

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Tenant’s default by paying any sum (except rent) or doing any act that requires the payment of any sum, the sum paid by Landlord shall be immediately
due and payable to Landlord by Tenant as additional rent. 
 15.5 Non-Exclusive. These remedies are not exclusive but cumulative to
other remedies provided by law in the event of Tenant’s default, and the exercise by Landlord of one or more rights and remedies shall not preclude the Landlord’s exercise of additional or different remedies for the same or any other
default by Tenant. 
 15.6 Institution of Legal Actions. In addition to any other rights or remedies, either party may institute legal
action to cure, correct, or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Lease. The prevailing party in any action commenced pursuant to this Lease shall be entitled to
recover reasonable costs, expenses and attorney’s fees. 
 15.7 Inaction Not a Waiver of Default. Any failures or delays by
either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies or deprive either such party of its right to institute and maintain any actions or proceedings
which it may deem necessary to protect, assert or enforce any such rights or remedies. 
 16. RIGHT TO ENTER PREMISES. Landlord, its employees,
agents, and representatives shall have the right to enter the Premises during Tenant’s business hours at all reasonable times to determine whether the Premises are in good condition and whether Tenant is complying with its obligations under
this Lease; to do any maintenance or restoration to the Premises; to serve or post any notices; to post “for rent” or “for lease” signs; to show the Premises to prospective brokers, agents, buyers, tenants or otherwise; to do any
act or thing necessary for the safety or preservation of the Premises; and to take any reasonable or necessary action to protect the Premises. Landlord shall not be liable for inconvenience, disturbance, loss of business, nuisance or other damage
arising from Landlord’s entry. Tenant shall not be entitled to an abatement or reduction of rent if Landlord exercises its right of entry hereunder. 
  

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 17. RIGHT TO RE-ENTER. Tenant shall peaceably deliver possession of the Premises to Landlord on the date of
termination of this Lease, whatsoever the reason for termination. On giving notice of termination to Tenant, Landlord shall have the right to re-enter and take possession of the Premises on the date termination becomes effective without further
notice of any kind and without instituting summary or regular legal proceedings. Termination of this Lease and re-entry by Landlord shall in no way alter or diminish any obligation of Tenant under this Lease and shall not constitute an acceptance or
surrender. Tenant hereby waives any right of redemption under any existing or future law in the event of eviction from or dispossession of the Premises for any reason or in the event Landlord re-enters and takes possession of the Premises in a
lawful manner. 
 18. EMINENT DOMAIN: 
 18.1 Definition of Terms. The following definitions shall govern interpretation of this paragraph. 
 18.1.1
Total Taking. The term “Total Taking” as used in this Lease means the taking of the entire Premises under the power of eminent domain or the taking of so much thereof as will in Tenant’s judgment prevent or substantially impair
the use of the Premises for the uses and purposes then being made or proposed to be made by Tenant of the Premises. 
 18.1.2
Partial Taking. The term “Partial Taking” means the taking of a portion only of the Premises which does not constitute a Total Taking as defined above. 
 18.1.3 Taking. The term “Taking” shall also include a voluntary conveyance by Landlord to an agency, authority or public
utility under threat of a Taking under the power of eminent domain in lieu of formal proceedings. 
 18.1.4 Date of
Taking. The term “Date of Taking” shall be the date title to the Premises or portion thereof passes and vests in the condemnor or the date of entry of an order 

  

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for immediate possession by a court of competent jurisdiction in connection with any judicial proceedings in eminent domain or the date physical possession
of the Premises is taken or interfered with, whichever first occurs. 
 18.1.5 Real Property. “Real Property”
as defined in subparagraph 1.1 of the Basic Lease Terms. 
 18.2 Effect of Taking. If during the term hereof there shall be a Total or
Partial Taking under the power of eminent domain, then the leasehold estate of Tenant in and to the Premises, in the event of a Total Taking, or the portion thereof taken, in the event of a Partial Taking, shall cease and terminate, as of the Date
of Taking thereof. If this Lease is so terminated in whole or in part, all rentals and other charges payable by Tenant to Landlord hereunder and attributable to the Premises, or portion thereof taken, shall be paid by Tenant up to and prorated
through the Date of Taking by the condemner. 
 18.3 Allocation of Award. Compensation and damages awarded which are remaining after
determination of Master Ground Lessor’s interest in the Real Property as provided in the Master Lease (the “Award Remainder”) in connection with a total or partial taking of the Premises, including all improvements thereon, shall be
allocated as follows: 
 18.3.1 In the event of a Total or Partial Taking of the Premises, including all improvements thereon,
the allocation of the Award Remainder as between Landlord and Tenant shall be determined by the Landlord and Tenant and, if Landlord and Tenant cannot agree on a determination as to the allocation of the Award Remainder, in such event, Landlord and
Tenant shall submit the determination of said allocation of the Award Remainder value of the respective interests of Landlord and Tenant to an appraisal process described below. 
 The appraised value of Landlord’s interest in the Premises for this purpose shall be based upon the value of the improvements owned
by Landlord on the Premises as burdened and benefitted by this Lease. The appraised value of Tenant’s interest in the Premises and the improvements thereon shall be based upon the value of Tenant’s ownership of the improvements which it
has developed and constructed on the Premises subject to this Lease and Tenant’s leasehold interest in the Premises. The appraised value of 

  

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the parties’ respective interests shall be determined by members of the American Institute of Real Estate Appraisers, as provided in this subparagraph
18.3 of the General Lease Terms. The parties shall commence said appraisal process by each appointing one appraiser within twenty (20) business days after notice from the other that such appraisal is required, and the appraisal process with
Master Ground Lessor has been completed. The appraisal shall be made on the basis of sales of comparable property in the area of the Premises. If it is concluded that there are no such comparable sales, then the appraisal shall be made on the basis
of any other reasonable method recognized by the American Institute of Real Estate Appraisers. If the two appraisers cannot agree on value, they shall appoint a third appraiser. If the three appraisers are not able to agree on the value of the real
property, then the appraised value shall be the average of the two appraisals which are nearest to one another. Each party shall pay for its appraiser. Both parties shall share equally in the cost, if any, of a third appraiser. 
 Partial Taking - Termination. In the event of the taking or transfer of no less than one-third (1/3) of the Premises,
including the Exclusive Area improvements, leaving the remainder of the Premises in such location, or in such form, shape, or reduced size as to be not effectively and practicably usable in the opinion of Tenant, Tenant may declare this Lease
terminated and all right, title, and interest of Tenant thereunder shall cease to exist on the date title to the Premises or the portion thereof so taken is transferred or vests in the condemning authority. In such event, Tenant quitclaims all right
and interest in the proceeds of any condemnation compensation to Landlord. 
 Partial Taking - Continuation with Rent
Abatement. In the event the Partial Taking is of less than one-third (1/3) of the Exclusive Area of the Premises, or event if the Taking is over one-third (1/3) of the Premises, or in the event of such taking or transfer of a part of
the Premises leaving the remainder of the Premises in such location and in such form, shape, or size as to be used effectively and practicably in the opinion of the Tenant, this Lease shall terminate and end only as to the portion of the Premises so
taken or transferred as of the date title to such portion vests in the condemning authority, but shall continue in full force and 

  

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effect as to the portion of the Premises not so taken or transferred. From and after such date the Minimum Rent required to be paid by Tenant to Landlord
shall be reduced in the proportion to which the square footage of the part of the Premises taken or transferred bears to the total square footage of the Premises. 
 Dislocation Compensation. In the event of condemnation of the Premises, Tenant or its sub-tenants shall not be entitled to
dislocation compensation, or business relocation or disruption from the Award Remainder unless such compensation and damages were received and allocated to Landlord in determining the Award Remainder. 
 Voluntary Conveyance. A Voluntary Conveyance by Landlord to a public utility, agency, or authority under threat of a taking under
the power of eminent domain in lieu of formal proceedings shall be deemed a taking within the meaning of this subparagraph. Such a conveyance can only be made with the concurrence of Landlord and Master Ground Lessor, and may be made without the
consent of Tenant. 
 18.4 Proceedings. In any condemnation proceeding affecting the Premises which may affect the estates of Landlord
and Tenant, both parties shall have the right to appear in and defend against such action as they deem proper in accordance with their own interests at their own expense. To the extent possible, the parties shall cooperate to maximize any
condemnation proceeds payable by reason of the condemnation. Issues between Landlord and Tenant required to be resolved pursuant to this paragraph shall be joined in any such condemnation proceeding to the extent permissible under then applicable
procedural rules of such court of law or equity for the purpose of avoiding multiplicity of actions and minimizing the expenses of the parties. 
 19.
THIS SECTION INTENTIONALLY OMITTED. 
 20. MISCELLANEOUS. 
 20.1 Improvements to Become Property of Landlord: All buildings, improvements and facilities, exclusive of trade fixtures, constructed or placed upon the Premises by Tenant, 

  

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or its predecessors, must, upon completion be kept free and clear of all liens, claims, or liability for labor or material and shall become the property of
Landlord at the expiration of this Lease or upon earlier termination hereof. Tenant shall prepare and submit to Landlord within sixty (60) days after the beginning of the term of this Lease, a schedule of trade fixture installed or placed on
the Premises whether by Tenant or its sublessees, concessionaires, or licensees. Tenant shall notify Landlord in writing of any changes, additions, substitutions or deletions to said schedule of trade fixtures. 
 20.2 Signs. Other than Tenant’s tradename signs approved as required by law or regulatory agency required signs, Tenant shall not place,
affix, maintain or permit any sign, advertisement, name, insignia, logo, descriptive material, or similar (collectively “Sign”) on the Premises without the prior approval of Landlord. Any Sign so approved shall be maintained by Tenant at
its cost, in good condition and repair. Any Sign not so approved may be removed by Landlord without notice at Tenant’s cost and the costs of removal and repair shall be additional rent. No sign may be affixed to the Improvements which requires
use of the roof without Landlord’s written approval. 
 20.3 Abandoned Personal Property. If Tenant abandons the Premises or is
dispossessed thereof by process of law or otherwise, title to any personal property belonging to Tenant and left on the Premises thirty (30) days after such abandonment or dispossession shall be deemed to have been transferred to Landlord.
Landlord shall have the right to remove and to dispose of such property without liability therefor to Tenant or to any person claiming under Tenant, and shall have no need to account therefor. Tenant hereby designates Landlord as its
attorney-in-fact to execute and deliver such documents as may be reasonably required to dispose of such abandoned property and transfer title thereto. 
 20.4 Subordination; Attornment. 
 20.4.1 Automatic Subordination. This Lease is and
shall be subordinate to the Master Ground Lease and to any encumbrance now of record or entered into and recorded after the date of this Lease affecting the Premises. Such subordination is effective without any further act of Tenant. Tenant shall,
from time to time, on request from Landlord execute and 

  

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deliver any documents or instruments that may be required by a lender. If Tenant fails to execute and deliver any such documents or instruments, Tenant
irrevocably constitutes and appoints Landlord as Tenant’s special attorney-in-fact to execute and deliver any such documents or instruments. 
 20.4.2 Attornment. In the event of Landlord’s default under the Master Lease or any encumbrance, Tenant shall attorn to Master Lessor, or to any grantee or transferee properly designated by Master Lessor or
lender. 
 20.4.3 Tenant shall execute documents required by Master Lessor or any lender to accomplish the purposes of this
paragraph. 
 20.5 Estoppel Certificates. Each party, within ten (10) days after notice from the other party, shall execute and
deliver to the other party, in recordable form, a certificate stating that this Lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications. The certificate also shall state the amount of
Minimum Rent, the dates to which the rent has been paid in advance, and the amount of any Security Deposit or Prepaid Rent. Failure to deliver the certificate within the ten (10) days shall be conclusive upon the party failing to deliver the
certificate for the benefit of the party requesting the certificate and any successors to the party requesting the certificate, this Lease is in full force and effect and has not been modified except as may be represented by the party requesting the
certificate. If a party fails to deliver the certificate within the ten (10) days, the party failing to deliver the certificate irrevocably constitutes and appoints the other party as its special attorney-in-fact to execute and deliver the
certificate to any third party. 
 20.6 Surrender of Premises. On expiration or within five (5) days after termination of the
Term, Tenant shall surrender to Landlord the premises and all Tenant’s improvements and alterations in good condition (except for ordinary wear and tear occurring after the last necessary maintenance made by Tenant) except for alterations that
Tenant has the right to remove or is obligated to remove under the provisions of this Lease. Tenant shall remove all its personal property within the above-stated time. Tenant shall perform all restoration made necessary by the removal of any
alterations or Tenant’s personal property within the time period stated in this paragraph. 
  

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 Landlord can elect to retain or dispose of in any manner any alterations or Tenant’s
personal property that Tenant does not remove from the Premises on expiration or termination of the Term as allowed or required by this Lease by giving at least five (5) day’s notice to Tenant. Title to any such alterations or
Tenant’s personal property that Landlord elects to retain or dispose of on expiration of the five (5) day period shall vest in Landlord. Tenant waives all claims against Landlord for any damage to Tenant resulting from Landlord’s
retention or disposition of such alterations or Tenant’s personal property. Tenant shall be liable to Landlord for Landlord’s costs for storing, removing, and disposing of any alterations or Tenant’s personal property. 
 If Tenant fails to surrender the premises to Landlord on expiration or within five (5) days after termination of the Term as required
by this paragraph, Tenant shall hold Landlord harmless for any damages resulting from Tenant’s failure to surrender the Premises, including, without limitation, claims made by a succeeding tenant resulting from Tenant’s failure to
surrender the Premises. 
 20.7 Holding Over. In the event Tenant shall continue in possession of the Premises after the expiration of
the Lease Term, such possession shall not be considered a renewal of this Lease but a tenancy from month to month and shall be governed by the conditions and covenants contained in this Lease. 
 20.8 Successors. Unless otherwise provided in this Lease, the terms, covenants and conditions contained herein shall apply to and bind the heirs,
successors, executors, administrators, and assigns of all the parties hereto. 
 20.9 Applicable Law. The laws of the State of
California shall govern the interpretation and enforcement of this Lease. 
 20.10 Quitclaim of Tenant’s Interests upon
Termination. Upon termination of this Lease for any reason, including but not limited to termination because of default by Tenant, Tenant shall execute, acknowledge and deliver to Landlord within thirty (30) days after receipt of written
demand therefor, a good and sufficient deed whereby all right, title and interests of Tenant in the Premises is quitclaimed to Landlord. 
  

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 20.11 Waiver By Landlord. Any waiver by Landlord of any breach of any one or more of the terms,
covenants, or conditions of this Lease shall be in writing and shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term, covenant, or condition of this Lease, nor shall failure on the part of Landlord
to require exact, full, and complete compliance with any of the terms, covenants, or conditions of this Lease be construed as in any manner changing the terms, covenants, or conditions hereof or preventing Landlord from enforcing the provisions
hereof, nor shall the conduct of the parties be deemed to change or modify the terms, covenants, or conditions of this Lease. No delay, failure or omission of Landlord to re-enter the Premises to insist on strict enforcement of any term, covenant,
or condition or to exercise any right, power, privilege or option arising from any default shall impair any such right, power, privilege or option or be construed as a waiver of or acquiescence in such default or as a relinquishment of any right.
The receipt and acceptance by Landlord of delinquent rent shall not constitute a waiver of any other default but shall only constitute waiver of timely payment for the particular rent payment involved. No notice to Tenant shall be required to
restore “time is of the essence” after the waiver by the Landlord of any default. No option, right, power, remedy or privilege of Landlord shall be construed as being exhausted by the exercise thereof in one or more instances. 

20.12 Force Majeure. In any case where either party hereto is required to do any act, delays caused by or resulting from acts of God, war,
civil commotion, fire, flood, earthquake or other casualty, strikes or other extraordinary labor difficulties, shortages of labor or materials or equipment in the ordinary course of trade, government regulations or other causes not reasonably within
such party’s control and not due to the fault or neglect of such party shall not be counted in determining the time during which such act shall be completed, whether such time be designated by a fixed date, a fixed time or “a reasonable
time”, and such time shall be deemed to be extended by the period of such delay. Neither financial inability of either party nor changes in market or financial conditions shall be considered to be a circumstance or cause beyond the reasonable
control of that party. 
  

 34 

 20.13 Termination of Prior Agreements. The parties hereto agree that all previous leases,
agreements or understandings entered into between the parties or their predecessors are hereby terminated as of the effective date of this Lease, and neither party shall have any further rights or liabilities thereunder. 
 20.14 Amendments. This Lease sets forth all of the agreements and understandings of the parties and any modification must be in writing duly
executed by both parties. 
 20.15 Provisions Are Covenants and Conditions. All provisions, ether covenants or conditions, on the part
of Tenant shall be deemed to be both covenants and conditions. 
 20.16 Right to Contest Laws. Tenant shall have the right after
notice to Landlord to contest or to permit its subtenants to contest by appropriate legal proceedings, without costs or expense to Landlord, the validity of any law, ordinance, order, rule, regulation or requirement to be complied with by Tenant
under this Lease. Provided such contest shall be promptly and diligently prosecuted at no expense to Landlord and so long as Landlord shall not thereby suffer any civil penalties, sanction or be subjected to any criminal penalties or sanctions, and
Tenant shall protect and save harmless Landlord against any liability and claims for any such noncompliance or postponement of compliance. 
 20.17 Partial Invalidity. If any term or provision of this Lease or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this Lease, or the application of such
term or provisions, to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent
permitted by law. 
 20.18 Waivers. All waivers of the provisions of this Lease must be in writing by the appropriate authorities of
Landlord or Tenant and all amendments hereto must be in writing by the appropriate authorities of Landlord and Tenant. 
 20.19 No Joint
Venture or Partnership. Nothing in this Lease shall be construed as creating either a partnership or joint venture between the parties hereto. 
  

 35 

 20.20 Jointly Drafted. This Lease is jointly drafted by the parties hereto and it is not to be
construed against either party as the drafter. 
 20.21 Time of Essence. Time is of the essence as to each of the provisions of this
Lease. 
 20.22 Institution of Legal Actions. In addition to any other rights or remedies, either party may institute legal action to
cure, correct, or remedy any default,, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Lease. The prevailing party in any action commenced pursuant to this Lease shall be entitled to recover
reasonable costs, expenses and attorneys’ fees. 
 20.23 Consents. Whenever consent or approval of either party is required, that
party shall not unreasonably withhold such consent or approval. 
 20.24 Additional Sums Rent. All sums payable by Tenant to Landlord
under this Lease are deemed rent or additional rent and must be paid in lawful money of the United States of America. 
 20.25 Broker.
Tenant represents that it has not had dealings with any real estate broker, finder, or other person, other than Fey Canyon Realtors, with respect to this Lease in any manner. Tenant shall hold Landlord harmless from all damages resulting from any
claims that may be asserted against Landlord by any other broker, finder or other person, with whom Tenant has or purportedly has dealt. 
 20.26 Release. Except as otherwise provided in this Lease, if a party elects to terminate this Lease as allowed in this Lease, on the date the Lease terminates, the parties shall be released from further liabilities and obligations
and Landlord shall return to Tenant any unearned rent. If Tenant is in default on the date the Lease terminates, Tenant is not released from its obligations and liabilities. 
 20.27 Exhibits. All exhibits referred to are attached to this Lease and incorporated by reference. 
 20.28 Captions. The captions of this Lease shall have no effect on its interpretation. 
 20.29 Gender. When required by the context of this Lease, the singular shall include the plural. 
  

 36 

 20.30 Recordation. This Lease shall not be recorded, except that if either party requests the
other to do so, the parties shall execute a Memorandum of Lease in recordable form. 
 20.31 Paragraph References. Unless otherwise
indicated, paragraph references in the Basic Lease Terms and General Lease Terms refer to paragraphs in such respective sections of this Lease. 
 20.32 Memorandum of Lease. Tenant shall have the right to record a Memorandum of Lease in the Office of the County Recorder of Riverside County, at Tenant’s expense. 
 20.33 Exhibits. The following exhibits are attached: 
 Exhibit “1” Description of Real Property 
 Exhibit “2” Plot Plan of
Premises 
 Exhibit “3” Landlord’s Improvements 
 Exhibit “4” Summary of Minimum Monthly Payments 
 EXECUTED by each the date set forth opposite their name. 
  

									
		 		 		 	LANDLORD:
			
		 		 	THE JAMES W. WOOD TRUST
				
	Dated: 2/10/98	 		 	BY:	 	/s/ Lawrence J. Olson
				
		 		 		 	TENANT:
			
	Dated: 2/24/98	 		 	CANYON NATIONAL BANK
			
		 		 	a Bank Corporation
					
		 		 		 	BY:	 	/s/ John Smith
					
		 		 		 	Its:	 	Chairman
					
		 		 		 	BY:	 	/s/ Kipp I. Lyons
					
		 		 		 	Its:	 	Secretary

  

 37 

			
	APPROVAL OF LEASE:
	
	 SMOKE TREE, INC.,
 a California
corporation

		
	By:	 	 /s/ C. C. Knudsen

		 	President

  

 38 

 EXHIBIT “2” 
 Plot Plan of Premises 
 

 
  

 39 

 EXHIBIT “3”  
 Landlord’s Improvements 
  

	1.	Paint exterior of all buildings. 

  

	2.	Remove foam from roof overhang and replace with plastic spike strips. 

  

	3.	Relocate three (3) palm trees on corner of Palm Canyon and Sunrise Way. 

  

	4.	Repair roof. 

  

	5.	Service and repair air conditioning system. 

  

	6.	Make ADA required improvements to the Non-Exclusive Area of the Premises. 

  

 40 

 AMENDMENT NO. 1 TO LEASE 
 This amendment to lease (“Amendment”) is dated for reference purposes March 31, 1998, between the JAMES W. WOOD TRUST, doing business as
Smoke Tree Village Shopping Center (“Landlord”) and CANYON NATIONAL BANK, a Bank corporation in formation (“Tenant”). 
 I.  
 RECITALS 
 1. Landlord and Tenant entered into a written lease (“Lease”) dated February 14, 1998 for premises commonly described as 1711 East Palm Canyon Drive, Palm Springs, California 92264. 
 2. All capitalized terms in this Amendment shall have the same meaning as the defined terms set forth in the Lease. 
 II. 
 AMENDMENT 
 3. Article 3 of the Basic Lease Terms is amended by adding a new subsection 3.4 to read as follows: 
 “ 3.4 Early Termination. Notwithstanding any other provision contained in this lease, the event (a) Lessee or its successors or assignees
shall become insolvent or bankrupt, or if it or their interests under this lease shall be levied upon or sold under execution or other legal process or (b) the depository institution then operating on the Premises is closed, or is taken over by
any depository institution supervisory authority (“Authority”), Lessor may, in either such event terminate this Lease only with the concurrence of any Receiver or Liquidator appointed by such Authority; provided, that in 

  

 1 

 
the event this Lease is terminated by the Receiver of Liquidator, the maximum claim of Lessor for rent, damages or indemnity for injury resulting from the
termination, rejection or abandonment of the unexpired Lease shall by law be all accrued and unpaid rent to the date of Lease termination.” 
 4.
Article 11, subsection 11.1 of the Lease is hereby amended to read as follows: 
 “11.1 Tenant’s Insurance. Concurrent with
the execution of this Lease and in partial performance of Tenant’s obligations hereunder, Tenant shall procure and maintain, at its cost, or cause to be maintained during the term of this Lease (including the period of early possession) and any
extensions or renewals thereof, from insurers admitted in California or having a minimum rating of or equivalent to A + in Best’s Insurance Guide: 
 11.1.1 Comprehensive General Liability Insurance with a combined single limit of at least Five Million Dollars ($5,000,000) for each
occurrence including as may be appropriate for the use and occupancy of the Premises, products, garagekeepers legal liability and fire legal liability coverage in amounts approved by Landlord. Landlord and Master Ground Lessor, their respective
officials, employees, and agents shall be covered as additional insureds with respect to liability arising from activities performed by or on behalf of Tenant. Said insurance shall be primary insurance with respect to Landlord and Master Ground
Lessor and shall contain a cross liability endorsement. Tenant shall require Tenant’s contractors, concessionaires, and sublessees to include Landlord and Master Ground Lessor as an additional insured on all general liability insurance covering
work or activities on the Premises. 
 11.1.2 “All Risk” personal property insurance including earthquake and flood
if available at reasonable cost in an amount sufficient to cover the full replacement value of Tenant’s improvements, personal property and equipment on the Premises. 
  

 2 

 11.1.3 [This Section Intentionally omitted] 
 11.1.4 Upon the execution of this Lease, Tenant shall deliver to Landlord and Master Ground Lessor certificates of insurance with original
endorsements evidencing the coverage required by this Lease. The certificates and endorsements shall he signed by a person authorized by the insurer to bind coverage on its behalf. Landlord reserves the right to require complete certified copies of
all policies at any time. Tenant further agrees that if Tenant fails to furnish evidence of insurance as provided in this paragraph, Landlord may obtain such insurance and the premium for such insurance shall be deemed additional rent to be paid by
Tenant to Landlord upon demand. 
 11.1.5 Said insurance shall contain an endorsement requiring thirty (30) days’
prior written notice from insurers to Landlord and Master Ground Lessor before cancellation or change of coverage. 
 11.1.6
Said insurance may provide for such deductibles or self-insured retention as may be acceptable to the Landlord or its designee. In the event such insurance does provide for deductibles or self-insured retention, Tenant agrees that it will fully
protect Landlord and Master Ground Lessor in the same manner as these interests would have been protected had the policy or policies not contained a deductible or retention provisions. With respect to damage to property, Landlord and Tenant hereby
waive all rights of subrogation, one against the other, but only to the extent that collectible commercial insurance is available for said damage. 
 11.1.7 Not more frequently than every three (3) years, if in the opinion of Landlord or of an insurance broker retained by Landlord, the amount of the foregoing insurance coverages is not adequate, Tenant shall
increase the insurance coverage as required by Landlord. 
 11.1.8 The procuring of said insurance shall not be construed as a
limitation on Tenant’s liability or as full performance on Tenant’s part of the indemnification and hold harmless provisions of this Lease. 
  

 3 

 11.1.9 Any modification or waiver of the insurance requirements herein shall only be made
with the written approval of Landlord and Master Ground Lessor.” 
 4. Article 19 is hereby amended to read as follows: 
 “19. Matters of Record. This lease is subject to and subordinate to all existing matters of record, including, but not limited to the Grant of
Easements and Declaration of Restrictions executed by Smoke Tree Village Limited, a Limited Partnership, and Smoke Tree, Inc., a California corporation, recorded May 15, 1969, as Instrument No. 48075, in the records of the office of the
County Recorder of Riverside County, California. Tenant agrees to abide by and not to violate any of the provisions of said document.” 
 EXECUTED on the date set forth opposite their name. 
  

									
	LANDLORD	 		 	
		 		 	 THE JAMES W. WOOD TRUST

				
	 Dated: 4/6/98
	 		 	 By:
	 	 /s/ Lawrence J. Olson

  

									
	TENANT	 		 	
		 		 	 CANYON NATIONAL BANK,
 a Bank Corporation

				
	Dated: March 31, 1998	 		 	 By:
	 	 /s/ Stephen G. Hoffmann

		 		 		 	 Its:
	 	 President / CEO

					
		 		 		 	 By:
	 	 /s/ Jonathan J. Wick

		 		 		 	 Its:
	 	 SVP / CFO

  

 4 

			
	 APPROVAL OF AMENDMENT
 OF LEASE BETWEEN THE JAMES W.
 WOOD TRUST AND CANYON NATIONAL
 BANK

	
	SMOKE TREE, INC.
		
	By:	 	 /s/ C. C. Knudsen

		
	By:	 	 President

  

 5 

 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT 
 State of California 
 County of Riverside 
 On March 31, 1998 before me, Betsy Hayes Lewey, Notary Public 
             Date                    Name and Title of Officer (e.g.
“Jane Doe, Notary Public”) 
 personally appeared Stephen G. Hoffmann and Jonathan J. Wick 
                                        
                             Name(s) of Signer(s) 
  

									
	[STAMP]	 		 	       x personally known to me – OR – x proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

			
		 		 	       WITNESS my hand and official seal.

					
		 		 		 		 	/s/ Betsy Hayes
		 		 		 		 	Signature of Notary Public

 OPTIONAL 
 Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent 
 fraudulent removal and reattachment of this form to another document. 
 Description of
Attached Document 
 Title or Type of Document: Amendment No. l to Lease (Canyon National Bank) 
 Document Date: March 31, 1998
                                        
                                        
                                        
        Number of Pages: 6 
 Signer(s) Other Than Named Above: The James W. Wood Trust & Smoke Tree, Inc.

 Capacity(ies) Claimed by Signer(s) 
  

					
	 Signer’s Name:
                                        
                        
	 		 	 Signer’s Name:
                                        
                        

			
	  ̈        Individual
	 	 	 	  ̈        Individual

	  ̈        Corporate Officer
	 		 	  ̈        Corporate Officer

	             Title(s):                         
                                   
	 		 	             Title(s):                         
                                   

	  ̈        Partner —  ̈  Limited     ̈  General
	 		 	  ̈        Partner —  ̈  Limited     ̈  General

	  ̈        Attorney-in-Fact
	 		 	  ̈        Attorney-in-Fact

	  ̈        Trustee
	 		 	  ̈        Trustee

	  ̈        Guardian or Conservator
	 		 	  ̈        Guardian or Conservator

	  ̈        Other:
                                        
                            
	 		 	  ̈        Other:
                                        
                            

	 _______________________________________
	 		 	 _______________________________________

	 Signer is Representing:
	 		 	 Signer is Representing:

	  	 		 	  
	  	 		 	  

 CALIFORNIA ALL–PURPOSE ACKNOWLEDGEMENT 
  

	State	of California             } 

	County	of Riverside          } 

 On 4/6/98 before me, Isaura V. Zepeda, Notary Public, personally appeared Lawrence J. Olson 
  ̈ personally known to me — OR — x proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
  

					
	 WITNESS my hand and official seal.
	 		 	
			
	/s/ Isaura V. Zepeda	 		 	[STAMP]

 OPTIONAL SECTION 
 This certificate must be attached to the document described below. Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form. 
 ·   Title or Type of Document Amendment No. 1 to Lease

 ·   Number of Pages 6 Date of Document
3/31/98 & 4/6/98 
 ·   Signer(s) Other than Named Above __________________________________________________________ 
     ________________________________________________________________________________________ 
      ̈ Individual
                   ̈ Corporate Officer(s)
_________________________________________________ 
 Title(s) 
 ·    ̈ Limited Partner(s)     ̈ General Partner(s) 
 ·    ̈ Attorney–In–Fact 
 ·    ̈
Trustee(s)                   ̈ Guardian/Conservator

 ·    ̈ Other ________________________________________________________________________________ 
     ________________________________________________________________________________________ 
 ·   Signer is Representing (Name of Person(s) or Entity(ies): _________________________________________ 
     ________________________________________________________________________________________Lease dated 04/16/04 between Canyon National Bank and Agua Caliente Dev.

 Exhibit 10.7 
 HERITAGE PLAZA 
 OFFICE LEASE 

 OFFICE LEASE 
 ARTICLE 1 
 PARTIES 
 1.1 This Lease, made this 16 day of April, 2004 between, AGUA CALIENTE DEVELOPMENT AUTHORITY, Lessor, and CANYON NATIONAL BANK, Lessee.

 ARTICLE 2 
 LEASED
PREMISES 
 2.1 Lessor does hereby lease to Lessee, and Lessee does hereby lease from Lessor Unit A 103B, consisting of 460
rentable square feet and more particularly set out in EXHIBIT “2.1” attached hereto, in that certain project known as HERITAGE PLAZA and located at 901 East Tahquitz Canyon Way, Palm Springs, California, hereinafter called
“Premises.” 
 ARTICLE 3 
 USE 
 3.1 The Premises are to be used for the operation of TESA File Room, and for no other purpose without
the prior written consent of Lessor, which shall not be unreasonably withheld. 
 ARTICLE 4 
 COVENANTS 
 4.1 It is
mutually agreed that the letting hereunder is upon and subject to the following terms, covenants and conditions, and Lessee covenants as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants
and conditions by him to be kept or performed, and that this Lease is made upon the condition of such performance. 
 ARTICLE 5

 TERM 
 5.1 Term of Lease. The term of this Lease shall be for five years, and shall commence on the 1st day of August, 2004 and shall terminate on the 31st day of July, 2009. The delivery of possession
is subject to and contingent upon the surrender of the Premises by the existing occupant, if any. 
 5.2 Option to
Extend. Provided Lessee is not in default hereunder, Lessee shall have the option to extend the term of this Lease for 5 years commencing on the expiration of the full term specified herein. The rent shall be subject to a 3% increase for
each option period. Lessee shall exercise said option by giving Lessor written notice of Lessee’s desire to do so at least six (6) months prior to the expiration of the prime term specified herein. 
  

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 5.3 Additional Option to Extend. Lessee shall have the option to extend the lease for two
additional 5 year terms. 
 ARTICLE 6 
 RENT, LATE CHARGE AND INTEREST 
 6.1 Rent. Rent shall be paid to Lessor
in lawful money of the United States of America to Lessor at such place as Lessor may designate, free from all claims, demands or setoffs against Lessor of any kind or character whatsoever, as follows: 
  

						
	 	  	Period	  	Rent
	 Current Year
	  	Through 10-31-03	  	$	721.00 monthly
	 Year 1
	  	11-01-03 to 10-31-04	  	 	742.63     ”    
	 Year 2
	  	11-01-04 to 10-31-05	  	 	764.91     ”    
	 Year 3
	  	11-01-05 to 10-31-06	  	 	787.86     ”    
	 Year 4
	  	11-01-06 to 10-31-07	  	 	811.50     ”    
	 Year 5
	  	11-01-08 to 10-31-09	  	 	835.85     ”    

 6.2 Late Charge. In the event that Lessor receives any rent installment later
than the 15th day of the month, Lessee shall be liable for an additional amount, assessed as a later charge, equal
to five percent (5%) of such rent installment period. 
 6.2 Interest on Delinquent Amounts. In addition to the
late charge described above, in the event any monthly rental installment is received by Lessor later than the 30th day of the month, Lessee shall be liable to Lessor for interest on such monthly rental installment at ten percent (10%) per
annum. 
 ARTICLE 7 
 HOLDING OVER 
 7.1 If Lessee holds possession of the Premises after the term of this Lease with Lessor’s
prior written consent (which may be unreasonably withheld), Lessee shall become a tenant from month to month upon the terms and conditions herein specified, so far as applicable, at a monthly rental equal to one hundred fifty percent (150%) of
the current monthly rental, in lawful money, and shall continue on a month-to-month basis until sixty (60) days after Lessee shall have given to Lessor, or Lessor shall have given to Lessee, a written notice of intention to terminate such
monthly tenancy. 
 ARTICLE 8 
 USES PROHIBITED 
 8.1 The premises shall not be used except for the purposes specified in Article 3 hereof.
Lessee shall not do or permit anything to be done in or about the premises, nor bring nor keep anything therein which will in any way affect fire or other insurance upon the building, or any of its 

  

 2 
 Illegible   
 Initial Here 

 
contents, or which shall in any way conflict with any law, ordinance, rule or regulation affecting the occupancy and use of the premises, which are or may
hereafter be enacted or promulgated by any public authority, or in any way obstruct or interfere with the rights of other tenants of the building, or injure or annoy them, nor use, nor allow the premises to be used, for any improper, immoral,
unlawful or objectionable purpose, or for any kind of eating house, or for sleeping purposes, or for washing clothes, or cooking therein. 
 ARTICLE 9 
 SECURITY DEPOSIT 
 9.1 Lessee currently has on deposit with Lessor the sum of $3,200. Said sum shall be held by Lessor as security for the faithful performance by Lessee of all terms, covenants, and conditions of this Lease to be
kept and performed by Lessee. Upon each notification of increase of Base Rent under this Lease or any renewals or extensions hereof, Lessee may be asked to increase its security deposit so that the dollar amount of said security deposit is equal to
or more than Base Rent. If Lessee defaults in the payment, performance or observance of any of its obligations under this Lease (including, but not limited to rent payment obligations hereunder), Lessor may (but shall not be required to) use, apply
or retain all or any portion of the security deposit for the payment of any rent or sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessees’ default. If any portion of the
security deposit is so used or applied, Lessee shall, within five (5) days after written demand therefore, deposit cash with Lessee in an amount sufficient to restore the security deposit to its original amount, and Lessee’s failure to do
so shall be a material breach of this Lease. Lessor shall not be required to keep the security deposit separate from its general funds and Lessee shall not be entitled to interest on said deposit. If Lessee shall fully and faithfully perform each of
its obligations under this Lease, the security deposit or any balance thereof shall be returned to Lessee (or, at Lessor’s option, to the last assignee of Lessee’s interest hereunder) at the expiration of the Term of this Lease (or any
renewal term which Lessor has agreed to in writing). In the event of the termination of Lessor’s interest in this Lease, Lessor shall transfer the security deposit to Lessor’s successor in interest, and Lessor shall thereafter have no
further liability to Lessee with respect thereto. 
 ARTICLE 10 
 UTILITIES AND MAINTENANCE 
 10.1 Premises. Lessee
shall pay any and all charges and costs for all gas, heat, light, power, telephone service, janitorial services and any and all other utilities serving the Premises. 
 10.2 Common Area. Utilities and other expenses necessary to maintain and service the common area, including but not limited to outside yard lighting, landscaping maintenance and water shall be
paid by Lessor. 
  

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 Illegible   
 Initial Here 

 ARTICLE 11 
 ASSIGNMENT AND SUBLETTING 
 11.1 Landlord’s Consent. Lessee will not
assign, mortgage or hypothecate this Lease or any interest therein, or permit the use of the premises by any person or persons other than Lessee, or sublet the Premises, or any part thereof, without the written consent of Lessor. Consent to any such
assignment or subletting shall not operate as a waiver of the necessity for consent to any subsequent mortgage, hypothecation, assignment or subletting, and the terms of such consent shall be binding upon any person holding by, under or through
Lessee. The Lessor will not unreasonably withhold its consent to an assignment or subletting. Lessor shall be entitled to request and review financial information of the proposed assignee or sub lessee. 
 11.2 Condition to Consent. As a condition to its consent, Lessor may require Lessee to pay all expenses in connection with the assignment,
including reasonable attorney’s fees, and Lessor may require Lessee’s assignee to assume in writing the obligations of Tenant under this Lease. 
 ARTICLE 12 
 MAINTENANCE, REPAIRS AND ALTERATIONS 
 12.1 Lessor Improvements. Prior to Lessee taking possession of the Premises, Lessor shall perform the following improvements: to be
determined. 
 12.2 Maintenance and Repairs by Lessee. Lessee agrees during the term hereof to keep and maintain the Premises
and every part thereof in first class condition and repair, including, without limiting the foregoing, all fixtures, interior walls, telephone lines servicing Lessee’s premises, floors, ceilings, sides, all interior building appliances and
similar equipment, windows, doors, plate glass, electrical, plumbing and air conditioning equipment. Lessor will pay any repairs to air conditioning equipment required prior to November 1, 2004. The provisions of Section 1932, Subsection 4
of Section 1933, and Sections 1941 and 1942 of the Civil Code of California shall not be applicable to this Lease and Lessee hereby waives the benefits of said provisions. 
 12.3 Consent of Lessor to Alterations. Lessee shall make no installations, additions, or improvements in or to the Premises, except as
otherwise authorized in this Lease, or structural alterations or changes either to the interior or exterior of the building on the Premises, or in the bearing walls, supports, beams, or foundations, without the written consent of the Lessor, which
shall not be unreasonably withheld. 
 12.4 Lessee to Pay Alteration Cost. All installations, additions, or improvements, and
alterations and changes made with the consent of the Lessor after Lessee occupies the Premises shall be made at the sole cost and expense of Lessee. 
 12.5 Alterations Required by Law. If, during the term of this Lease, any additions, alterations, or improvements in or to the Premises, as distinguished from repairs, are required by governmental
regulations because of the use to which the Premises are put by Lessee and not by reason of the character or structure of the building, they shall be made and paid for by Lessee. 
  

 4 
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 Initial Here 

 12.6 Surrender or Removal of Improvements. All alterations, additions, or improvements
which are made in or to the Premises shall be delivered up and surrendered to Lessor upon the termination of this Lease, unless prior to such termination Lessor gives Lessee written notice to remove some or all thereof, in which case Lessee shall
cause the items so designated to be removed and the Premises to be restored to their condition at the commencement of Lessee’s business, normal wear and tear excepted, all at the expense of Lessee. 
 12.7 Mechanic’s Liens. Lessee agrees to pay promptly for all labor done or materials furnished for any work of repair, maintenance,
improvements, alterations, or additions done by Lessee in connection with the Premises, and to keep and to hold the Premises free, clear, and harmless of and from all liens that could arise by reason of any such work. If any such lien shall at any
time be filed against the Premises, Lessee shall either cause the same to be discharged of record within twenty (20) days after the date of filing the same, or if Lessee in its discretion and in good faith, determines that such lien should be
contested, Lessee shall furnish such security as may be necessary or required to prevent any foreclosure proceedings against the Premises during the pendency of such contest. If Lessee shall fail to discharge such lien within such period or fail to
furnish such security, then, in addition to any other right or remedy, Lessor may, but shall not be obligated to, discharge the same, either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit in court or by
giving security or in such other manner as is or may be prescribed by law. Lessee shall repay to Lessor on demand all sums disbursed or deposited by Lessor pursuant to the foregoing provisions hereof, including Lessor’s costs, expenses, and
reasonable attorneys’ fees incurred by Lessor in connection therewith. Nothing contained herein shall imply any consent or agreement on the part of the Lessor to subject Lessor’s interest in the property, of which the Premises are a part
of, to liability under any mechanic’s lien law. 
 12.8 Notice of Non-Responsibility. Lessor shall at all times have the
right to post and to keep posted on the demised premises such notices provided for under the laws of the State of California for the protection of the Premises from Mechanic’s Liens or liens of a similar nature. 
 ARTICLE 13 
 DESTRUCTION OF
PREMISES FROM FIRE OR ACT OF GOD 
 13.1 Hold Harmless. Lessee and Lessor shall hold each other harmless from all
damages to the Premises arising from fire or other casualty occasioned by the act, negligence or fault of or omission of the other party, its agents, servants or employees or invitees. 
 13.2 Total Destruction. Without limiting the generality of the foregoing, if the premises or the building wherein the same are situated
shall be destroyed by fire or other cause, or be so damaged thereby that they are untenantable and cannot be rendered tenantable within ninety (90) days from the date of such destruction or damage, this Lease may be terminated by Lessor or
Lessee by written notice. 
 13.3 Partial Destruction. In case the damages or destruction be not such as to permit a
termination of the Lease as above provided, then a proportionate reduction shall be made in the 

  

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rent herein reserved corresponding to the time during which and to the portion of the Premises of which Lessee shall be deprived of possession. 

ARTICLE 14 
 ENTRY AND
INSPECTION 
 14.1 Lessee will permit Lessor and Lessor’s agents to enter into and upon the Premises at all reasonable
times for the purpose of inspecting the same, or for the purpose of protecting Lessor’s reversions, or to make alterations or additions to the Premises or to any other portion of the building in which the Premises are situated, or for
maintaining any service provided by Lessorto Lessee hereunder, if any, without any rebate of rent to Lessee for any loss of occupancy or quiet enjoyment of the Premises, or damage, injury or inconvenience thereby occasioned, and will permit Lessor
at any time within ninety (90) days prior to the expiration of this Lease to bring upon the Premises, for purposes of inspection or display, prospective tenants thereof. 
 ARTICLE 15 
 HOLD HARMLESS AND LIABILITY INSURANCE 
 15.1 Non-Liability of Lessor. Lessor shall not be liable to Lessee for any injury or damage that may result to any person or property by or
from any cause whatsoever, and without limiting the generality of the foregoing, whether caused by water leakage of any character from the roof, walls, basement or other portion of the Premises, or caused by gas, fire, oil, electricity, or any cause
whatsoever, in, on or about the Premises or any part thereof. 
 15.2 Hold Harmless. Lessee agrees to hold Lessor harmless from
and defend Lessor against any and all claims or liability for any injury or damage to any person or property whatsoever (a) occurring in, on or about the Premises or any part thereof, and (b) occurring in, on or about any facilities, the
use of which Lessee may have in common with other tenants of the building, when such injury or damage shall be caused in part or in whole by the act, negligence or fault of, or omission of any duty with respect to the same by, Lessee, Lessee’s
agents, servants, employees or invitees. 
 15.3 Liability Insurance. Lessee agrees at its expense to take out and keep in
force during the term of this Lease public liability insurance to protect against any liability to the public incident to the use of or resulting from an accident occurring in or about the premises, the liability under such insurance to be not less
than $500,000.00 for any one person injured or $1,000,000.00 for any one accident and $250,000/$500,000 for property damage. These policies shall insure the contingent liability of the Lessor. Lessee shall supply to Lessor a certificate issued by
the insurance company as evidence that such insurance is in force and that Lessor has been named as an additional insured. Lessee shall also obtain a written obligation on the part of the insurance carriers to notify the Lessor in writing ten
(10) days prior to any cancellation of such insurance. If Lessee fails to maintain such insurance, Lessor may acquire the necessary insurance and any premium cost shall be deemed additional rent due thirty (30) days after written notice to
Lessee. 
  

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 ARTICLE 16 
 COMMON AREA 
 16.1 The Lessor is to maintain the common area and furnish it with a
reasonable amount of water and electricity suitable for the intended use of the common area. Lessor, however, shall not be liable for failure to furnish any of the foregoing when such failure is caused by accidents or conditions beyond the control
of Lessor, or by repairs, labor disturbances or labor disputes, of any character, whether resulting from or caused by acts of Lessor or otherwise; nor shall Lessor be liable under any circumstances for loss or injury to property, however, occurring,
through or in connection with or incidental to the furnishing of any of the foregoing, nor shall any such failure relieve Lessee from the duty to pay the full amount of rent herein reserved, or constitute or be construed as a constructive or other
eviction of Lessee. 
 ARTICLE 17 
 OPERATING EXPENSES OF THE COMMON AREA 
 17.1 Pro-ration of
Expenses. All expenses incurred by Lessor for maintenance and servicing of the common area, including but not limited to water, electricity, gardening, real property taxes, and such fire insurance as Lessor deems
advisable, shall be borne pro rata by Lessee based upon the percentage that the square footage of Lessee’s premises bears to the total rentable square footage in HERITAGE PLAZA. The Lessee’s percentage for said items shall be
         percent (         %). 
 17.2 Common Area Expenses Reserve. Commencing
                            , Lessee shall pay Lessor
$         for each month to cover the Lessee’s pro rata portion of the operating expenses for the common area and payment of real property taxes. Failure to make the payment as
provided herein shall constitute default under the Lease and shall be subject to the provisions of Article 19. 
 ARTICLE 18

 TAXES 
 18.1 Real Property Taxes. All real property taxes, municipal, county and state and improvement liens or betterment assessments levied or assessed against the Premises shall be paid by the Lessor. 
 18.2 Personal Property Taxes. Lessee shall pay before delinquency all personal property taxes assessed against personal property of Lessee
in or about the Premises at any time during the term hereof. 
 ARTICLE 19 
 NOTICES 
 19.1 All notices to be given between the parties hereto
shall be sufficient if in writing and served personally or by depositing the same in the United States mail, postage prepaid, and, in the 

  

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 case of Lessee, addressed to Lessee at the Premises (whether or not Lessee has departed from, abandoned or vacated the
Premises) and, in the case of Lessor, at the address at which rental payments are to be made as provided in Paragraph 6.1 hereof. Any such notice shall, if mailed, be deemed effective on the day following the date of mailing. 
 ARTICLE 20 
 DEFAULT AND
REMEDIES 
 20.1 Termination. 
 (a) Termination for Lessee’s Insolvency or Dissolution. This Lease shall be deemed repudiated and breached by Lessee
if, during the term of this Lease: 
 (i) A petition to have Lessee adjudicated a bankrupt or a petition for reorganization or
arrangement under any of the laws of the United States relating to bankruptcy is filed by Lessee, or is filed against Lessee, and if the trustee appointed by the Bankruptcy Court fails to ratify and accept this Lease within the applicable time set
forth under Federal Bankruptcy Law. 
 (ii) The assets of Lessee of the business conducted by Lessee on the Premises are
assumed by any trustee or other person pursuant to any judicial proceedings; 
 (iii) Lessee makes an assignment for the
benefit of creditors; or 
 (iv) Any corporate Lessee or assignee or successor in interest of Lessee commences proceedings for
winding up. 
 (b) Lessor’s Right of Termination, Re-entry, Damages. Lessee expressly agrees that Lessor
may, at its election, terminate this Lease in the event of the occurrence of any of the contingencies hereinabove described by giving not less than three (3) days written notice to Lessee, and, when so terminated, Lessor may re-enter the
Premises, and the leasehold interest created by this Lease shall not be treated as an asset of Lessee’s estate. It is further expressly understood and agreed that Lessor shall be entitled upon such re-entry, notwithstanding any other provisions
of this Lease, to exercise such rights and remedies and to recover from Lessee as damages for loss of the bargain resulting from such breach, and not as a penalty, such amounts as are specified in Section 19.3. 
 20.2 Default. Lessor may, at its option and without limiting Lessor in the exercise of any other right or remedy it may have on account of
a default or breach by Lessee, exercise the rights and remedies specified in Section 19.3 if: 
 (a) Rent
Default. Lessee defaults in the payment of any money agreed to be paid by Lessee to Lessor for rent or charges to be paid for taxes and utilities or for any other purpose under this Lease, and if such default continues for three
(3) days after written notice to Lessee by Lessor. 
  

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 (b) Abandonment. Lessee abandons the Premises for a period of thirty
(30) days. 
 (c) Other Default. Lessee defaults in the performance of any other of its agreements,
conditions, or covenants under this Lease and such default continues for thirty (30) days, plus such period of delay as Lessee may encounter in the performance of its agreements by reason of matters beyond the control of Lessee. 
 20.3 Remedies. On any breach, default, or abandonment, Lessor may exercise any of the following rights after the periods of time stated in
Section 19.2 or Section 19.1. 
 (a) Continuation of Lease After Breach. Even though Lessee has
breached this Lease and abandoned the property, this Lease continues in effect for so long as Lessor does not terminate Lessee’s right to possession; and Lessor may enforce all his rights and remedies under this Lease, including the right to
recover the rent as it becomes due under this Lease. For the purposes of this section, the following do not constitute a termination of Lessee’s right to possession: 
 (i) Acts of maintenance or preservation of efforts to relet the property. 
 (ii) The appointment of a receiver on initiative of Lessor to protect his interest in this Lease. 
 Lessee may, at its option, transfer its interest hereunder in the following manner so long as Lessor has not terminated Lessee’s
right to possession; sublet the property, assign its interest in the Lease, or both, with the consent of Lessor which consent shall not be withheld unreasonably. 
 (b) Termination of Lease. Lessor may terminate this Lease, and recover from Lessee all damages permitted by Civil Code
Section 1951.2 including 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 for the same period that the Tenant proves could be
reasonably avoided, and in the event of such a termination said Section 1951.2 shall govern with respect to the rights, duties and liabilities of Lessor and Lessee. 
 20.4 No Waiver of Default. Lessor’s failure to take advantage of any default or breach of covenant on the part of Lessee shall not be, or be construed as a waiver thereof, nor shall any custom or
practice which may grow up between the parties in the course of administering this instrument be construed to waive or to lessen the right of Lessor to insist upon the performance by 
  

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 Lessee of any term, covenant, or condition hereof, or to exercise any rights given him on account of any such default.

 20.5 Lessor’s Right to Cure Default. If Lessee shall be in default in the performance of any covenant on its part to be
performed under this Lease, then, after notice and without waiving or releasing Lessee from the performance thereof, Lessor may, but shall not be obligated so to do, perform any such covenant, and, in exercising any such right, pay necessary and
incidental costs and expenses in connection therewith. All sums so paid by Lessor, together with interest thereon at the rate of ten percent (10%) per annum, shall be deemed additional rent and shall be payable to Lessor on the next rent-paying
day. 
 ARTICLE 21 
 REMOVAL OF PROPERTY 
 21.1 Lessee shall not vacate or abandon the premises at any time during the term. Lessee
hereby irrevocably appoints Lessor as agent and attorney in fact of Lessee to enter upon the premises, in the event of default by Lessee in the payment of any rent herein reserved, or in the performance of any term, covenant or condition herein
contained to be kept or performed by Lessee, and to remove any and all furniture and personal property whatsoever situated upon the premises, and to place such property in storage for the account of and at the expense of Lessee. In the event that
Lessee shall not pay the cost of storing any such property after the property has been stored for a period of thirty (30) days or more, Lessor may sell any or all of such property, at public or private sale, in such manner and at such times and
places as Lessor in its sole discretion may deem proper, without notice to Lessee or any demand upon Lessee for the payment of any part of such charges or the removal of any of such property, and shall apply the proceeds of such sale, first, to the
cost and expenses of such sale, including reasonable attorneys’ fees actually incurred; second, to the payment of the costs of or charges for storing any such property; third, to the payment of any other sums of money which may then or
thereafter be due to Lessor from Lessee under any of the terms thereof; and fourth, the balance, if any, to Lessee. 
 ARTICLE 22

 WAIVER OF DAMAGES 
 22.1 With respect to Articles 19 and 20, Lessee hereby waives all claims for damages that may be caused by Lessor’s re-entering and taking possession of the premises or removing and storing furniture and property, as herein
provided, and will save Lessor harmless from loss, costs or damages occasioned Lessor thereby, and no such re-entry shall be considered or construed to be a forcible entry as the same is defined in the Code of Civil Procedure of the State of
California. 
 ARTICLE 23 
 ATTORNEYS’ FEES AND COSTS 
 23.1 In case Lessor should bring suit to recover any rent due hereunder, or
if either party should bring any action for any relief, declaratory or otherwise, arising out of this Lease, the 

  

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prevailing party shall be entitled to receive reasonable attorneys’ fees, to be taxed by the court as part of the costs of such action. 
 ARTICLE 24 
 TERMS DEFINED

 24.1 the words “Lessor” and “Lessee” as used herein shall include the plural as well as the singular.
Words used in masculine gender include the feminine and neuter. If there be more than one Lessee, the obligations hereunder imposed upon Lessee shall be joint and several. 
 ARTICLE 25 
 HEIRS 
 25.1 Subject to the provisions hereof relating to assignment and subletting, this Lease is intended to and does bind the heirs, executors,
administrators, successors and assigns of any and all of the parties hereto. 
 ARTICLE 26 
 TIME 
 26.1 Time is of
the essence of this Lease. 
 ARTICLE 27 
 PARAGRAPH HEADINGS 
 27.1 The paragraph headings of this Lease are inserted merely for
purposes of convenience and shall not be utilized for any other purpose, including but not limited to construction of the terms and provisions of this Lease. 
 ARTICLE 28 
 CONDEMNATION 
 28.1 In the event the premises or any part thereof are condemned by the exercise of the right of eminent domain by any duly constituted authority,
Lessor may, at Lessor’s option, terminate this Lease by sending Lessee written notice of termination within sixty (60) days of such condemnation, and Lessee shall thereafter be relieved of all further obligation to pay Lessor further
rentals on and after the effective date of such termination; in the event of such termination, Lessee’s leasehold interest shall be terminated effective as of the effective date of such notice of termination. 
 ARTICLE 29 
 PARKING FACILITIES

 29.1 Lessee’s patrons shall have the privilege, in common with patrons of other tenants of Lessor, to make use of the
automobile parking area to be provided on the Lessor’s property, it 

  

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being understood that regulation and maintenance of this parking area will be under the sole control of Lessor, and no specific portions thereof shall be
allocated to patrons of the within Lessee. The Lessor reserves the right to assign some specific parking spaces to some specific Lessees. Lessor has reserved fifteen (15) spaces for short term parking. 
 ARTICLE 30 
 RULES AND REGULATIONS

 30.1 The rules and regulations contained in this Lease by way of exhibit or otherwise, as well as such reasonable
additional or revised rules and regulations as may be hereafter adopted by Lessor for the safety, care and cleanliness of the Premises, and the preservation of good order thereon, are hereby expressly made a part hereof, and Lessee agrees to comply
with all of the same. The present rules and regulations are attached hereto as EXHIBIT “29.1.” 
 ARTICLE 31 
 ENTIRE AGREEMENT 
 31.1
This writing states the entire agreement of the parties and may not be amended or modified except by a writing signed by the party to be charged. 
 ARTICLE 32 
 SUBORDINATION 
 32.1 Lessor reserves the right to place liens and encumbrances on the demised premise superior in lien and effect to this Lease. This Lease is subject and subordinate to any liens and encumbrances now or
hereafter imposed by Lessor upon the demised premises or the building of which the demised premises forms a part and Lessee agrees to execute and deliver upon demand such instruments subordinating this Lease to any such lien or encumbrance as shall
be requested by Lessor. 
 32.2 With respect to future encumbrances, the provisions of Paragraph 31.1 above shall only be applicable
to the Lessee if Lessor first obtains from the lender a written agreement, which provides substantially the following: 
 “As long as Lessee performs its obligations under this Lease, no foreclosure of, deed given in lieu of foreclosure of, or sale under the encumbrance, and no steps or procedures taken under the encumbrance, shall affect Lessee’s
rights under this Lease.” 
 ARTICLE 33 
 ESTOPPEL CERTIFICATE 
 33.1 At any time and from time to time, Lessee agrees upon
request in writing from Lessor to execute, acknowledge and deliver to Lessor a certificate in recordable form, stating that this Lease is unmodified and in full force and effect, or in full force and effect as modified and stating 

  

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the modifications. The certificate shall also state the amount and the dates to which rent and other charges have been paid. It is understood and agreed that
any such certificate may be relied upon by any prospective purchaser or the mortgagee, beneficiary or grantees of any security interest, or any assignees of any thereof, under any mortgage or deed of trust now or hereafter made. 
 ARTICLE 34 
 FORCE MAJEURE

 34.1 Lessor shall not be responsible nor in breach of this Lease Agreement, in the event of building damage, destruction
damage or injury to Lessee or its Property if such damage or injury is occasioned by acts of God, strikes, lockouts, government regulations and restrictions on the building, or other cause beyond the control of Lessor and not occasioned by any
default or negligence on his part. 
 ARTICLE 35 
 GARBAGE AND REFUSE 
 35.1 Lessee shall at any and all times prevent any garbage, waste,
or any other materials to be disposed of from being left, stored, or placed inside or outside the demised premises. In the event Lessee shall fail in any respect to comply with the foregoing, Lessor, at its option, may take such steps as appear to
it to be necessary in regard thereto and, in such event, the cost thereof shall be paid by Lessee to Lessor with the next installment of rent falling due hereunder, and Lessor shall have all remedies to collect the same as rent as provided in this
Lease or at law. 
 ARTICLE 36 
 WAIVER OF SUBROGATION 
 36.1 Lessor and Lessee hereby waive any rights each may have against the other on
account of any loss or damage occasioned to the Lessor or the Lessee, as the case may be, their respective property, the demised premises, or its contents, or to other portions of the development, arising from any risk generally covered by fire and
extended coverage insurance; and the parties each, on behalf of their respective insurance companies, insuring the property of either the Lessor or the Lessee against any such loss, waive any right of subrogation that it may have against the Lessor
or the Lessee, as the case may be. 
 ARTICLE 37 
 ATTORNMENT 
 37.1 Lessee shall, in the event any proceedings are brought for the
foreclosure of, or in the event of exercise of the power of sale under any mortgage or trust deed made by Lessor covering the demised premises, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Lessor
under this Lease. 
  

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 ARTICLE 38 
 QUIET ENJOYMENT 
 38.1 Lessee, upon paying the minimum rent and all additional rent and
any other charges provided for herein and observing and performing all of the provisions of this Lease to be observed and performed by Lessee, shall quietly have and enjoy the demised premises during the term, without hindrance or molestation by
anyone lawfully claiming under Lessor subject to all of the provisions of this Lease. 
 ARTICLE 39 
 EXECUTION IN COUNTERPARTS 
 39.1 This Lease or a short form of this Lease or both may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 
 ARTICLE 40 
 LEASE SUBJECT TO
MASTER LEASE 
 40.1 Lessor is the owner of a leasehold estate under that certain Business Lease No. PSL-247, Contract No.
J53C1420-3571, by and between Estate of JEANE MARIE CHORMICLE BALZANO, referred to as “Master Lessor,” and TAHQUITZ PROPERTIES, a partnership, and approved by the Area Director, Bureau of Indian Affairs, Department of Interior, on
June 12, 1978. Said Lease was recorded October 20, 1978, as Document No. 221320, and covers that certain real property described as Block 117, Section 14, T4S, R4E, SBB&M, and was subsequently assigned to Lessor herein. This
Lease and the interest of the parties hereto and any successor in interest of the Lessee herein, are subject to all of the covenants, conditions and restrictions set forth in the Master Lease and amendments thereto, and to the rights and interest of
the Master Lessor, and any consents required to be given hereunder. Reference is made to the Master Lease for particulars, and the same is incorporated as a part of this Lease as if set forth at length herein. In the event of conflict the terms and
conditions of the Master Lease shall prevail. 
 ARTICLE 41 
 LESSOR’S DEFAULT/LIABILITY 
 41.1 Lessor shall not be in default
unless Lessor fails to perform its obligations required of lessor within a reasonable time, but in no event later than thirty (30) days after written notice from lessee to Lessor specifying wherein Lessor has failed to perform such obligation,
provided however, that if the nature of Lessor’s obligation is such that more than thirty (30) days are required for performance then Lessor shall not be in default if Lessor commences performance within said thirty (30) day period
and thereafter diligently pursues the same to completion. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above
written. 
  

									
	LESSOR:	 		 		 	LESSEE:
				
	AGUA CALIENTE DEVELOPMENT AUTHORITY	 		 		 	CANYON NATONAL BANK
					
	 BY
	 	/s/ FRED R. RAZZAR	 		 	 By:
	 	/s/ STEPHEN G. HOFFMAN
		 	Fred R. Razzar, Executive Director	 		 	 Its:
	 	President & CEO
					
		 		 		 	 By:
	 	  
		 		 		 	 Its:
	 	  

  

 Exhibit 29.1 

 EXHIBIT “29.1” 
 RULES AND REGULATIONS 
 ATTACHED TO AND MADE A PART OF THIS LEASE

 SIGNS. No sign, placard, picture, advertisement, name of notice shall be inscribed, displayed, printed or affixed on or to any
part of the outside or inside of the buildings without the written consent of Lessor and Lessor shall have the right to remove any such objectionable sign, placard, picture, advertisement, name or notice, without notice to and at the expense of
Lessee. 
 DIRECTORY. A directory of the building will be provided exclusively for the display of the name and location of Lessees.

 WIRING. When wiring of any kind is introduced it must be connected as directed by Lessor and no boring or cutting for wires will be
allowed except with the consent of Lessor. 
 NON-RESPONSIBILITY. Lessor is not responsible to any tenant for the non-observance or
violation of the rules and regulations by any other tenant. 
  

 EXHIBIT “29.1”

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