LICENSE AGREEMENT
BETWEEN
THE VONS COMPANIES, INC.
AND
SOUTHERN CALIFORNIA BANK
DATED FEBRUARY 22, 1996
VONS #524
0000 XXXX XXXXXXXX XXXXXXX
XX XXXXX, XXXXXXXXXX
TABLE OF CONTENTS
RECITALS 5
AGREEMENTS 5
DEFINITIONS 5
DEFINITIONS 5
GRANT OF LICENSE 6
TERM 6
USE 7
LICENSE FEE 7
EMPLOYEES 8
IMPROVEMENTS, ADDITIONS AND SIGNS 8
APPROVALS 10
MAINTENANCE AND REPAIR 10
ADVERTISING, PROMOTION AND RELATED ACTIVITIES 11
INSURANCE AND INDEMNIFICATION 12
TAXES 13
TERMINATION OF AGREEMENT BY VONS 14
TERMINATION OF AGREEMENT BY SCB 15
SURRENDER OF POSSESSION 16
DAMAGE TO PREMISES 16
CONDEMNATION 16
PEACEFUL POSSESSION 17
ASSIGNMENT 17
REMODELING OR CLOSURE OF SUPERMARKET. 17
SECURITY 19
CONFIDENTIALITY 19
NO PARTNERSHIP 19
MORTGAGE SUBORDINATION 19
HOLDING OVER 19
DISCLAIMER 20
LAWS 20
WAIVER OF SUBROGATION 20
WAIVER OF LIENS 20
ENTIRE AGREEMENT 21
CAPTIONS 21
LANGUAGE NOT CONSTRUED AGAINST EITHER PARTY 21
SEVERABILITY 22
GOVERNING LAW 22
BINDING EFFECT 22
NOTICES 22
ATTORNEY'S FEES; EXPENSES 23
NONWAIVER OF RIGHTS 23
INTEREST ON OVERDUE OBLIGATIONS 23
RETAIL CLERKS UNION 23
LICENSE AGREEMENT
THIS LICENSE AGREEMENT (this "AGREEMENT") is made and entered into as
of the 22nd day of February, 1996, by and between THE VONS COMPANIES, INC., a
Michigan corporation ("VONS") and SOUTHERN CALIFORNIA BANK, a California
corporation ("SCB").
RECITALS
This Agreement is made with reference to the following facts:
A. SCB operates financial service facilities throughout the
State of California. VONS operates a chain of supermarkets throughout
California and the State of Nevada.
B. VONS is the sublessee of certain real property upon which
VONS will operate a supermarket facility. SCB desires to occupy and utilize
a portion of such supermarket to install, maintain, and operate a financial
service facility, and VONS desires to permit such occupancy and use.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, VONS and SCB hereby
agree as follows:
AGREEMENTS
1. DEFINITIONS
For purposes of this Agreement, the following terms shall have the
following meanings:
(a) "Automated Teller Machine" or "ATM" shall mean an electronic
information processing device which accepts or dispenses cash in connection
with a credit or deposit account, but shall not include any device used
solely to facilitate check guarantees or check authorization, or used in
connection with the acceptance or dispensing of cash on a person-to-person
basis, such as by a store cashier.
(b) "Effective Date" shall mean February 22, 1996.
(c) "Financial Service Facility" or "FSF" shall mean a banking
facility staffed with one (1) or more bank employees whose functions may
include, without limitation, opening new deposit accounts insured by the
Federal Deposit Insurance Corporation, accepting loan applications and
performing customary teller transactions, such as cashing checks and taking
deposits. A FSF may or may not be equipped with an ATM, safe deposit boxes,
vault, cash dispensers or a night depository. A FSF may also offer such
other products or services as may be permitted by applicable law and
regulation, including, without limitation, insurance and investment services.
(d) "License Fee" shall mean the fee set forth in Section 5
hereof with respect to the Basic Term or any of the Renewal Terms, as the
case may be.
(e) "Premises" shall mean that approximately five hundred (500)
square foot portion of the Supermarket cross-hatched on Exhibit "A" attached
hereto and incorporated herein by this reference.
(f) "Premises FSF" shall mean the FSF located in the Premises
and subject to this Agreement.
(g) "Property" shall mean that certain real property commonly
known as 0000 Xxxx Xxxxxxxx Xxxxxxx, Xx Xxxxx, Xxxxxxxxxx, as depicted on
Exhibit "B" attached hereto and incorporated herein by this reference. VONS
subleases the Property pursuant to that certain Sublease dated as of February
22, 1996 (the "Sublease") between Xxxxx'x Food & Drug Centers, Inc., as
sublessor, and The Vons Companies, Inc., as sublessee, a short form of which
as recorded on February 22, 1996 as Document No. 19960084574 in the Official
Records of Orange County, California.
(h) "Supermarket" means the supermarket facility to be operated
by VONS on the Property.
2. GRANT OF LICENSE
Commencing on the Effective Date, VONS grants to SCB and SCB's
employees, customers and invitees, a limited, exclusive and revocable license
("License") to use the Premises in accordance with the terms and conditions
set forth herein.
3. TERM
(a) BASIC TERM. The "Basic Term" of this Agreement shall
commence upon the Effective Date and shall continue for a period of three (3)
years immediately following commencement of the Basic Term, subject to
Section 20 below.
(b) Renewal Options. Unless this Agreement has been sooner
terminated pursuant to the terms hereof, SCB shall have the option (each such
Option being herein referred to as a "Renewal Option") of extending the Basic
Term for three (3) additional periods of five (5) years each (each a "Renewal
Term"), by notifying VONS in writing no earlier than one hundred twenty (120)
days and no later than sixty (60) days prior to the expiration of the Basic
Term or Renewal Term then in effect. Each Renewal Term shall be on the same
terms and conditions as set forth herein, except for the License Fee, which
shall calculated as set forth in Section 5 hereof.
(c) Regulatory Compliance. Notwithstanding any other provision
of this Agreement, if SCB elects not to extend the term of this Agreement or
this Agreement is otherwise terminated for any reason, SCB shall take prompt
action to obtain all necessary regulatory approvals for the closure or
relocation of the Premises FSF and to proceed to close the Premises FSF and
remove its improvements, signs and personal property from the Supermarket.
Until all such regulatory approvals are obtained and the Premises FSF is
closed, this Agreement shall continue on a month-to-month basis on the same
terms and conditions as contained herein and at the License Fee applicable to
the period immediately preceding SCB's election not to extend this Agreement
or such other termination .
4. USE
(a) SCB shall have the right to occupy and use the Premises for
the construction, operation, maintenance, repair and servicing of a FSF but
for no other use. SCB may provide or promote all financial services which
are transacted or conducted by SCB in the operation of any of its other
consumer and commercial banking facilities.
(b) Each party shall conduct its business at the Supermarket in a
first-class and proper manner. Each party agrees that it shall not
unreasonably block or restrict the aisles or passageways of the other party,
nor shall either party interfere with the other party's business. VONS
reserves the right to approve any of SCB's merchandising or advertising
displays which are placed on the exterior walls of the Premises FSF exclusive
of signage permitted in accordance with Section 7(f) hereof, such approval
not to be unreasonably withheld or delayed.
(c) Subject to force majeure (as hereinafter defined) and the
other provisions of this Agreement, following the Effective Date, the
Premises FSF shall be open for business for a minimum of forty eight (48)
hours a week allocated over seven (7) days; provided, however, that (i) the
Premises FSF shall not be open less than four (4) hours on any given day;
(ii) the hours of operation for the Premises FSF must be consistent with the
operating hours of the Supermarket; and (iii) the hours of operation of
active ATMs located in the Premises FSF shall not count toward this
requirement. Such minimum hours of operation shall be shortened for any week
during which a "Bank Holiday" (as such term is customarily understood in the
banking industry) occurs and any week during which the Supermarket is not
open for business, and shall be subject to force majeure. If a bank holiday
is observed on a Friday or Monday with respect to a holiday occurring on a
Saturday or Sunday, such adjustment may, at SCB's discretion, include either
or both of such actual holiday and such bank holiday. The operating hours of
the Supermarket are currently scheduled to be 6:00 a.m. to midnight, seven
(7) days a week; provided, however, that, subject to Section 20 hereof, such
hours of operation are subject to change at any time at VONS' sole
discretion, but the Supermarket will nevertheless remain open during any
minimum hours required for operation of the Premises FSF by applicable
regulatory authority (such hours are currently 10:00 a.m. to 3:00 p.m. on
Mondays through Fridays, bank holidays excepted). VONS shall immediately
notify SCB of any change in the Supermarket's hours of operation and shall
use reasonable efforts to give SCB thirty (30) days' notice prior to changing
the hours of operations of the Supermarket. SCB shall not be required to
operate the Premises FSF during any hours when the Supermarket is not open
for business. Following the Effective Date, VONS and SCB shall implement a
mutually agreeable procedure to allow SCB emergency access to the Premises
during any hours when the Supermarket is not open for business.
(d) SCB shall offer services in the Premises FSF generally
consistent with the services offered at other SCB full-service branches
taking into account limitations in service due to the size of the Premises
FSF.
5. LICENSE FEE
Commencing on the Effective Date and continuing throughout the term
of this Agreement, SCB will pay rent ("License Fee") to VONS on or before the
first day of each calendar month. The License Fee for the first year of the
Basic Term will be One Thousand Seven Hundred Fifty Dollars ($1,750) per
month ($21,000 per year). If the Effective Date is not the first day of a
month, the License Fee will be prorated based on the number of days in that
month and will be paid on the first day of the following month. If the
Agreement ends on the day that is not the last day of the month, License Fee
will be prorated based on the number of days in that month.
The License Fee will be paid to VONS in lawful money of the United
States of America at the address stated in Section 37 hereof. VONS, or any
successor in interest to VONS, may elect to have the License Fee paid to
another payee or mailed to any other address, provided that VONS must give
SCB written notice as to the payee and/or address to which the License Fee
must be sent.
Effective upon February 22, 1997, the License Fee shall be adjusted
in accordance with the fee structure attached hereto as Schedule "1"
("License Fee Adjustment"). The License Fee Adjustment (which shall
determine the License Fee for the remainder of the Basic Term and the Renewal
Terms) shall be based upon VONS' average weekly customer count for the
Supermarket during the final twelve (12) full weeks of the first year of the
Basic Term.
6. EMPLOYEES
(a) SCB Shall be solely responsible for the hiring of its
personnel and for the staffing of the Premises FSF at all times during the
Basic Term and any Renewal Terms under this Agreement. All persons employed
by SCB in or about, or in connection with, the operation of the Premises FSF
shall be SCB's employees for all purposes under this Agreement. None of
SCB's employees shall in any way be deemed to be employees, agents or
representatives of VONS.
(b) VONS shall be solely responsible for the hiring of its
personnel and for the staffing of the Supermarket at all times during the
Basic Term and any Renewal Terms under this Agreement. All persons employed
by VONS in or about, or in connection with, the operation of the Supermarket
shall be VONS' employees for all purposes under this Agreement. None of
VONS' employees shall in any way be deemed to be employees, agents or
representatives of SCB.
(c) SCB and VONS shall each, at its own cost and expense,
maintain workers' compensation coverage, unemployment compensation coverage
and other insurance which may be required by law with respect to their
respective employees. SCB and VONS shall each be solely responsible for the
payment of all salaries, compensation, withholding taxes, health and welfare
benefits and other similar charges associated with the employment of their
respective employees. Should any such assessment be made against either
party with respect to such party's employees, each party expressly agrees to
indemnify the other and hold the other harmless from any such assessment or
liability. Compensation and benefits payable by SCB and VONS to or on
account of their respective employees shall be proved by each party in
accordance with such policies and procedures as each party, in its sole
discretion, shall adopt, provided that all such compensation and benefits
comply with all applicable state and federal laws.
(d) SCB shall comply with and abide by, and cause its employees
to comply with and abide by, all reasonable rules and regulations adopted by
VONS regarding safety, security, conduct and customer relations at the
Supermarket, provided such rules and regulations are made available in
advance to SCB and its employees at least three (3) business days in advance
of the effectiveness thereof, and provided VONS' employees are also required
to comply with and abide by such rules and regulations.
(e) SCB's employees, whole working at the Premises FSF, shall be
entitled to use all facilities in the Supermarket provided by VONS for the
convenience of VONS' employees at the Supermarket including, but not limited
to, toilet facilities, lunchrooms and breakrooms.
(f) SCB's employees shall not park their automobiles in the
primary customer parking area as designated by VONS for the Supermarket, but
shall park their automobiles only in locations designated by VONS, which
locations shall be the same as those designated for parking by VONS'
employees.
(g) SCB's employees and agents and employees of companies which
manufacture or service the Premises FSF who are not SCB's employees or agents
shall be granted access to the Premises for the purpose of servicing,
maintaining and otherwise performing services I connection with the Premises
FSF. VONS agrees to cooperate with SCB so that SCB's employees or
contractors shall have access to the Premises during periods of time in which
the Supermarket may not be open for business.
7. IMPROVEMENTS, ADDITIONS AND SIGNS
(a) Plans and Specifications. Intentionally omitted.
(b) Construction. SCB shall not engage in any substantial
construction activities for the period from November 1 through January 1 with
VONS' prior written consent (except for emergency repairs and required
maintenance). Construction shall be completed in accordance with all
applicable laws and building codes and shall be completed in a good and
workmanlike manner. SCB shall not construct the Premises FSF in such a
manner as to affect VONS' "Highly Protected Risk" ("HPR") insurance rating.
VONS may, in its reasonable discretion, limit SCB's construction time within
the Supermarket so as to minimize any safety hazards to customers and
employees and any disruption of VONS' operations in the Supermarket. SCB
shall schedule heavy construction prior to noon and light construction
between noon and 6:00 p.m. SCB shall indemnify, defend and hold VONS
harmless from and against any mechanics' liens and other liens or claims in
connection with SCB's alterations and/or improvements.
(c) Fixtures, Equipment and Furnishings. SCB at its sole cost
and expense, shall furnish all fixtures, equipment and furnishings which it
deems necessary or desirable for operation of the Premises FSF and shall pay
any and all costs of modification of the Premises for the installation of
such fixtures, equipment and furnishings. SCB shall not make any
modification or attach any substantial fixtures or equipment without VONS'
prior written approval, which shall not be unreasonably withheld or delayed.
Premises which may be necessary or required by reason of any law, rule,
regulation or order promulgated by any governmental authority regulating SCB
or the Premises. However, if the scope of said alteration substantially
alters the form and/or arrangement of the Premises FSF as provided in the
Plans, either VONS or SCB may terminate this Agreements.
(d) Site Preparation Costs SCB previously operated a banking
facility in the Premises during the time the Property was operated as a
supermarket by Xxxxx'x Food & Drug Centers, Inc. VONS and SCB acknowledge
that the Premises FSF has already been constructed in the Premises and is
currently being operated by SCB. SCB accepts the Premises FSF in its "as is"
condition.
(e) Construction Insurance. SCB shall obtain or cause its
general contractor to obtain, such insurance as will protect SCB and VONS
from claims for property damage or personal injury bodily injury, including
death which may arise in connection with SCB's construction work. Such
insurance shall be obtained from a financially
responsible company which is licensed to do business as an insurance company
in the State of California and shall name VONS as an additional insured.
Such commercial general liability and property insurance shall be for limits
of not less than One Million Dollars ($1,000,000) single limit bodily injury
and property damage liability. SCB shall furnish VONS with a certificate of
insurance evidencing the issuance of the required insurance prior to the
commencement of SCB's construction work.
(f) Signage. VONS shall permit SCB to place signs
identifying its operations within the Supermarket in the vicinity of the
Premises FSF, such signs being of such dimensions and such locations as shown
in the Design Plans and as are consistent with any applicable governmental
laws, rules and regulations. Exterior signs shall be subject to the consent
of any required parties pursuant to any existing ground leases, reciprocal
easements, space leases, covenants, conditions and restrictions or other
agreements relating to the Property and shall comply with the requirements of
any governmental authority having appropriate jurisdiction. All contractual
approvals for such SCB signage shall be obtained by VONS but at no cost to
VONS; all permits, variances or similar governmental entitlements necessary
to allow SCB's placement of such signs shall be obtained by SCB at its sole
cost and expense. All SCB signage will be fabricated, installed and
maintained at SCB's sole cost and expense and shall be consistent with
current SCB signage standards. Subject to any applicable governmental laws,
rules or regulations, SCB may change its signage at any time with VONS' prior
written consent, which shall not be unreasonably withheld or delayed;
provided however, that SCB shall not need VONS' consent to change signage
based upon a change in SCB's name or logo.
8. APPROVALS
VONS shall take reasonable steps to obtain the consent, where
necessary, of any property manager or other entity, except governmental
entities, required for the operation of the Premises FSF. SCB shall
procure, where necessary, any and all governmental permits, consents,
licenses or other authorizations required for the operation of the Premises
FSF at its sole cost and expense. VONS agrees to cooperate with and assist
SCB in obtaining approvals and permits in connection with the construction,
installation, operation, relocation or discontinuance of the Premises FSF.
If the necessary approvals and/or permits to construct, install and operate
the Premises FSF are not obtained after reasonable efforts by VONS and/or
SCB, either party may terminate this Agreement.
9. MAINTENANCE AND REPAIR
(a) Obligations of SCB. SCB shall, at its sole cost and expense,
maintain the Premises as follows:
(i) SCB shall keep and maintain the Premises in good
order and repair, including all equipment installed therein and all
electrical or other transmission lines used by SCB for computer data
processing and transmission;
(ii) SCB shall pay for telephone, data lines, or related
services required for SCB's operations;
(iii) SCB shall provide all necessary janitorial
services for the Premises; and
(iv) SCB shall maintain any glass windows which are
installed by SCB as part of the Premises FSF (excluding exterior glass
windows of the Supermarket).
Notwithstanding the foregoing, SCB shall not be responsible for the
maintenance of the Supermarket or the parking or common areas of the shopping
center of which the Supermarket is a part.
(b) Obligations of VONS. VONS shall, at its sole cost and
expense, provide the following maintenance and services:
(i) VONS shall furnish from facilities presently
existing at the Supermarket, all lighting, air conditioning, heating, and
other utilities for the Premises, excluding telephone lines and services.
However, VONS shall not be responsible for any additional electrical,
heating, cooling, lighting and/or telephone equipment that may be required by
SCB for SCB's operations;
(ii) If for any reason, not the fault of VONS, such
utilities are suspended or discontinued, VONS shall not be liable to SCB for
any interruption of its operations by reason of such suspension or
discontinuance, but SCB shall be entitled to a proportionate abatement of the
License Fee if the utilities servicing the Premises are suspended or
discontinued for more than forty-eight (48) hours;
(iii) VONS shall keep and maintain the Supermarket,
including, but not limited to, exterior glass windows, and toilet facilities
in good order and repair, including, without limitation, plumbing and
electrical equipment (with the exception of computer data processing and
transmission lines used by SCB), heating, air conditioning, doors, windows
and all other structural portions of the Supermarket (with exception of those
structural portions installed or revised by SCB). VONS shall also maintain,
or cause to be maintained, the parking and common areas of the shopping
center of which the Supermarket is a part;
(iv) VONS shall maintain the Supermarket free and clear
of any sales items, fixtures, barriers, signs or other obstructions that
would inhibit the ingress to and egress from the Premises FSF and shall, in
all events, keep Supermarket free and clear of all items within a reasonable
distance from the service counters in the Premises FSF. VONS shall keep all
exterior walls that are used by SCB for merchandising free and clear of all
signs and fixtures; and
(v) Subject to SCB's security requirements as reasonably
established, and upon not less than one (1) business day's prior notice
(except in the event of an emergency ) VONS and/or its agents shall have the
right to enter the Premises at any reasonable hour (or, in an emergency, at
any hour), to perform an inspection or accomplish any other lawful purpose.
10. ADVERTISING, PROMOTION AND RELATED ACTIVITIES
(a) Both VONS and SCB recognize that it is in their mutual best
interest to promote jointly the business of each other at the Supermarket.
Each party and its employees agree to cooperate with and promote the goodwill
and business of the other party at the Supermarket, including, without
limitations, working together in good faith to coordinate joint promotions
for the Premises FSF and the Supermarket.
(b) Both VONS and SCB may, at their own expense, advertise the
existence and location of the Premises FSF in such media and in such manner
as each deems appropriate. However, the prior approval of each party shall
be obtained with regard to any advertisement that is to be transmitted by or
appear in any medium that refers to both parties.
(c) VONS and SCB shall at all times retain prior approval of any
marketing or promotional advertisement by the other party which bears the
other party's name, logo or trademark or those of any of the other party's
fictitious business names.
(d) SCB and VONS acknowledge and agree that each party's
trademarks and tradenames are solely the property of such party,
respectively, and that this Agreement does not in any way grant to the other
party the right to use same. Full title and all rights with respect to such
trademarks and tradenames shall be and remain the property of VONS and SCB,
respectively.
(e) Subject to VONS' approval, which will not be unreasonably
withheld or delayed, SCB may advertise or sell products or services outside
the Premises FSF within the Supermarket itself. SCB shall be responsible for
any clean-up of the Supermarket associated with such sale of products or
services. VONS agrees that "silent radio" announcements broadcast in the
Supermarket or in-store public address announcements will not promote
depository institutions other than SCB.
(f) SCB personnel may canvass and distribute information
regarding SCB's services in the Premises FSF in the aisles of the Supermarket
as long as such personnel do not interfere with or otherwise disrupt VONS'
customers while such customers are making buying decisions. SCB shall be
responsible for any clean-up of the Supermarket associated with such
advertising or distribution of literature.
(g) SCB may promote the Premises FSF in selected SCB statement
stuffers or messages sent to certain of SCB's branches as mutually agreeable
to VONS and SCB.
(h) VONS and SCB shall develop and conduct cooperative grand
opening promotional activities and offers.
(i) SCB shall have access to the intercom located in the
Supermarket, proved that the use of such intercom shall be coordinated by the
store manager and SCB's use of the intercom shall at all times be subject to
the prior approval of the store manager, which approval shall not
unreasonably withheld. It is the parties' intention that the joint use of
this intercom shall be to the benefit of both parties for the purpose of
paging and announcing various specials being promoted by either party within
the Supermarket.
11. INSURANCE AND INDEMNIFICATION
(a) Personal Property Insurance. SCB and VONS shall each carry
its own personal property insurance.
(b) Liability Insurance. SCB shall maintain in full force and
effect during the term of this Agreement commercial general liability
insurance including broad form blanket contractual coverage against claims
for bodily injury, death and/or property damage occurring within or upon the
Premises, which insurance shall afford "single occurrence" protection to at
least a limit of Two Million Dollars ($2,000,000). Such commercial general
liability insurance shall name VONS as an additional insured as respects its
interest in the Premises, shall provide that VONS shall receive thirty (30)
days' prior written notice of any non-renewal, cancellation or material
change in coverage under such policy, and shall state that the insurance
coverage provided is primary and non-contributory as regards
any other insurance carried by SCB. SCB shall furnish VONS with a
certificate of insurance evidencing the coverage required under this
paragraph.
(c) Property Insurance. VONS shall maintain in full force and
effect throughout the term of this Agreement all risk property insurance in
an amount equal to the full replacement cost of the improvements now or
hereafter located upon the Property.
(d) Self-Insurance. SCB (or VONS) may elect at any time during
the term of this Agreement not carry the commercial general liability
insurance and all risk property insurance required by this Section 11 and to
"self-insure" against such risks provided that (i) SCB (or VONS) has in
effect for the benefit of its branches (or stores) a program of
"self-insurance" against such risks, (ii) SCB (or VONS) has and maintains a
net worth of at least Fifty Million Dollars ($50,000,000), and (iii) the
failure to carry such insurance does not violate any law, statute, code, act,
ordinance, order, judgment, decree, injunction, rule regulation, permit,
license, authorization or other requirement which is issued by any government
or governmental agency with jurisdiction over the Premises (or the Property)
or which is applicable to SCB (or VONS) in the conduct of its business.
(e) Compliance with Regulations. SCB and VONS shall each, at its
own cost and expense, comply with all reasonable rules and orders of its
insurance company or companies related to its respective operations in the
Premises FSF and the Supermarket.
(f) Indemnification. Subject to the provisions of Section 28,
VONS and SCB hereby mutually agree to indemnify, defend and hold each other
harmless from any and all claims, losses, expenses, actions or causes of
action, including, but not limited to, reasonable attorneys' fees in defense
thereof, arising from, or in connection with the negligence or willful
misconduct of their employees, agents, representatives, contractors or any of
them in performance of the terms of this Agreement.
12. TAXES
SCB shall be liable for all taxes assessed by any taxing authority
(including sales taxes) which are attributable to SCB's operations at the
Premises FSF and shall pay all personal property taxes assessed on SCB's
fixture, equipment and machinery located in the Supermarket. SCB shall also
pay any license or other fee incident to the conduct of its business whether
billed directly to SCB or to VONS. In the event that any unapportioned tax
assessed against VONS includes SCB property, other than real estate taxes,
SCB shall pay such portion of the tax as the value of such SCB property that
was included in VONS' assessment at the time of the assessment bears to the
total value of the property assessed in the Supermarket.
Notwithstanding anything to the contrary contained in this Section
12, SCB shall not be liable for any of the following taxes and/or assessments
related to VONS' occupancy or use or ownership of the property:
(a) Personal property, fixture or equipment taxes
assessed against VONS property;
(b) Franchise Taxes assessed against VONS;
(c) Taxes on VONS gross rents or profits;
(d) Inheritance, state, gift, income, transfer or excess
profit taxes assessed against VONS;
(e) Sales taxes payable by VONS; and
(f) Real property taxes and assessments, including, but
not limited to, any fees, interest and penalties arising from any such tax or
assessment, assessed against all or any portion of the Property and the
improvements located thereon, including, but not limited to, any such taxes
and assessments attributable to the Premises, the Premises FSF or any portion
of either.
In the event that any unapportioned property tax (other than
a real property tax or assessment) is assessed against either party hereto
and includes property owned by the other party hereto, VONS and SCB agree to
cooperate to have the portion of such tax that relates to property owned by
such other party assessed to such other party. If VONS and SCB cannot
convince the assessor to so reapportion such tax, the party owing the
property so taxed agrees to pay to the party being assessed the portion of
such tax relating to such property.
13. TERMINATION OF AGREEMENT BY VONS
Notwithstanding any provision of this Agreement (but subject to
Sections 3(c) and 27 hereof) or any implied covenant to the contrary, VONS
shall have the right to terminate this Agreement upon thirty (30) days'
written notice to SCB in the event of any of the following occurrences:
(a) SCB's failure to make any payment of the License Fee required
hereunder when the same is due, and SCB's failure to cure such default within
ten (10) days following written notice thereof by VONS to SCB;
(b) SCB's failure to make any payment required hereunder (other
than a payment of the License Fee) when the same is due and SCB's failure to
cure such default within thirty (30) days following written notice thereof by
VONS to SCB except to the extent that SCB provides VONS with written notice
prior to the expiration of said thirty (30) -day period that SCB disputes
VONS' calculation or other determination of the amount of any such payment
and thereafter proceeds in good faith to promptly resolve said dispute;
(c) A non-monetary default under this Agreement which is not
timely cured by SCB. SCB shall not be in default under this Section 13(c) if
SCB cures such non-monetary default within a period of thirty (30) days after
receipt of written notice thereof from VONS to SCB. If the default is of
such a nature that the same cannot be rectified or cured within said thirty
(30) days period, then such default shall be deemed to be rectified or cured
if SCB shall, within the thirty (30) day period, commence to rectify and cure
the same and shall thereafter complete such rectification and cure with due
diligence;
(d) SCB's failure, after the Effective Date, to operate the
Premises as a FSF for any reason (except during a temporary closure of the
Supermarket as set forth in Section 20 (a), hereof), as a result of "force
majeure" (as hereinafter defined), or during a strike, boycott, lockout or
other labor disturbance which, in SCB's reasonable determination, would
endanger SCB's employees or customers for seven (7) consecutive days during
VONS' normal operating business hours provided that the Supermarket has been
operating for such seven (7) day period;
(e) SCB's (i) failure to maintain, at a minimum, the following
banking services at the FSF: opening new deposit accounts insured by the
Federal Deposit Insurance Corporation, accepting loan applications and
performing customary teller transactions, such as cashing checks and taking
deposits which continues after VONS has give ten (10) days' written notice of
such service deficiencies to SCB and SCB has failed to cure same or (ii)
SCB's substantial modification of the consumer and commercial banking format
of the Premises FSF;
(f) VONS' closure of the Supermarket (subject to the provisions
of Section 20 (c) below:
(g) Anything in this Agreement to the contrary notwithstanding,
in the event that SCB is closed, or taken over by the authority of the United
States, or other government supervisory authority, VONS may terminate this
Agreement only with the concurrence of such governmental authority or other
supervisory authority, and any such authority shall in any event have the
election either to continue to terminate this Agreement; provided, however,
that in the event this Agreement is terminated in whole or in part, the
maximum claim of VONS for damages or indemnity for injury, resulting from the
rejection or abandonment of the remaining term of this Agreement shall in no
event be in an amount exceeding the License Fee reserved hereunder for the
Premises affected, without acceleration, for the year next succeeding the
date of re-entry into the Premises by VONS, whichever occurs first, whether
before or after the closing of the Premises FSF, plus an amount equal to the
unpaid License Fee accrued without acceleration, up to such date; and
(h) The termination of VONS' Sublease for the Property.
14. TERMINATION OF AGREEMENT BY SCB
Default. Notwithstanding any provision of this Agreement (but
subject to Sections 3(c) and 27 hereof) or any implied covenant the contrary,
SCB shall have the right to terminate this Agreement upon thirty (30) days'
written notice to VONS in the event of any of the following occurrences:
(a) VONS failure to make any payment required hereunder when the
same is due, and VONS' failure to cure such default within thirty (30) days
following written notice thereof by SCB to VONS except to the extent VONS
provides SCB with written notice prior to the expiration of said thirty
(3)-day period that VONS disputes SCB's calculation or other determination of
the amount of any such payment and thereafter proceeds in good faith to
promptly resolve said dispute;
(b) A non-monetary default under this Agreement which is not
timely cured by VONS. VONS shall not be in default under this Section 14(b)
if VONS cures such non-monetary default within a period of thirty (30) days
after receipt of written notice thereof from SCB to VONS. If the default is
of such a nature that that the same cannot be rectified or cured within said
thirty (30)-day period, then such default shall be deemed to be rectified or
cured if VONS shall, within the thirty (30)-day period, commence to rectify
and cure the same and shall thereafter complete such rectification cure with
due diligence; and
(c) VONS' substantial modification of the retail supermarket
format of the Supermarket (i.e., from a retail supermarket to a "warehouse"
club format). Notwithstanding the foregoing, VONS shall have the express
right to add or remove any departments, features or services as VONS deems
desirable in its reasonable business judgment to operate a retail supermarket
in the Supermarket.
15. SURRENDER OF POSSESSION
(a) Possession. Subject to the provisions of Section 3(c)
and Section 27 hereof, upon the effective date of any termination of this
Agreement, SCB shall surrender peaceful possession of the Premises to Vons
and shall, at its expense, remove any and all alterations, additions or
improvements (with exception of major structural modifications made by SCB)
which SCB has made to the Premises and restore the Premises to as good a
condition as it received same, loss or damage by fire and ordinary wear and
tear from reasonable use excepted.
(b) Fixtures. The parties agree that all fixtures,
furnishings, machinery and equipment placed in or on the Premises by or
through SCB shall be the property of SCB and shall be removed by SCB at the
termination of this Agreement.
16. DAMAGE TO PREMISES.
If by fire or other casualty, the Premises and/or the Supermarket are
destroyed or damaged to the extent that SCB is deprived of occupancy or use
of the same, and if such damage or destruction can be repaired within ninety
(90) days from the date of such damage or destruction, VONS shall promptly
restore the Premises and the Supermarket and SCB shall restore the Premises
FSF to substantially the same condition as existed before such damage or
destruction. The License Fee payable by SCB hereunder shall be equitably
abated to the extent that SCB is unable to occupy and use the Premises.
In the event such damage or destruction cannot be repaired within
ninety (90) days, VONS shall notify SCB as soon as practicable whether (i)
VONS has elected to repair and rebuild the Supermarket as may be permitted
pursuant to the terms of the VONS Sublease, or (ii) VONS has elected not to
rebuild the Supermarket and to terminate the VONS Sublease. If VONS has
elected to rebuild the Supermarket, SCB shall provide VONS with written
notice no later than thirty (30) days after receipt of VONS' notice whether
or not SCB desires to reopen the Premises FSF in the Supermarket. If SCB
desires to reopen the Premises FSF, this Agreement shall continue in effect
and the License Fee payable by SCB hereunder shall be equitably abated to the
extent that SCB is unable to occupy and use the Premises. If (i) VONS elects
not to rebuild the Supermarket or if (ii) SCB elects not to reopen the
Premises FSF, this Agreement shall terminate effective as of the date of such
damage or destruction.
17. CONDEMNATION
All awards made by reason of condemnation shall be made to VONS and
SCB shall assign to VONS all of its right, title and interest in and to such
award. VONS shall, however, pay to SCB any portion of an award which may be
allocable to permanent improvements to the Supermarket made by SCB. Also, if
any award includes an amount of compensation for moving fixtures, SCB will be
entitled to recover out of the award SCB's actual cost of removing its
fixtures. Notwithstanding the foregoing, SCB shall be entitled to any award
intended to compensate SCB for expenses of locating and moving SCB's
operations to a new space. Nothing contained in this paragraph shall
preclude SCB from filing a separate claim against the condemning authority
for the undepreciated value of it leasehold improvements and relocation
expenses, provided that any award to SCB will not result in a diminution of
an award to VONS.
If the Supermarket, the Premises or any portion thereof is taken or
condemned by any competent authority so as to prevent SCB from conducting its
operations in substantially the same manner as theretofore conducted, this
Agreement shall terminate.
18 PEACEFUL POSSESSION
So long as SCB performs its obligations under this Agreement, SCB
shall have peaceful and uninterrupted possession of the Premises during the
term of this Agreement, except by reason of force majeure. The "force
majeure" as applied to a party to this Agreement shall mean acts of God,
strikes, boycotts, explosions, sabotage, accidents, riots or civil commotion,
acts of war, fire or other casualty, or other cause or causes beyond such
party's reasonable control.
19. ASSIGNMENT
The obligations of, and services to be provided by, each party
hereunder are considered to by unique and have been specifically bargained
for based upon subjective criteria by each party. Therefore, this Agreement
and the rights and obligations set out hereunder shall not be assigned
subleased, licensed, or delegated, in whole or in part, by either party
without the prior written consent of the other party, which consent shall be
in the party's sole and absolute discretion. Notwithstanding the foregoing,
either party may, whether by assignment, or transfer by operations of law,
transfer its rights, obligations, duties and benefits under this Agreement to
a parent, wholly-owned subsidiary of affiliated entity of the transferring
party, to a successor by merger or consolidation, or to an entity which
acquires substantially all of the assets of the transferring entity in the
county in which the Supermarket is located; provided, however, that the
transferee agrees in writing, for the benefit of the non-transferring party,
to be bound by the duties and obligations of the transferring party under
this Agreement.
In the event VONS sells, leases, subleases, assigns or otherwise
transfers it interest in the Supermarket to an entity ("Transferee") other
than a parent, subsidiary or affiliated entity of VONS (including, but not
limited to, a partnership of which VONS is a majority owner), this Agreement
shall terminate upon sixty (60) day's written notice by VONS to SCB, subject
to Section 3(c) and Section 27 hereof. Notwithstanding the foregoing, this
Agreement shall not terminate in the event of a sale/leaseback transaction
with respect to the supermarket, so long as the Supermarket continues to be
operated under the "VONS" name.
Upon notice by VONS of termination pursuant to the foregoing
paragraph, subject to Section 3(c) and section 27 hereof, SCB shall vacate
the Premises in accordance with the provision of Section 15 of this
Agreement, except that the Premises shall be vacated within thirty (30) days
of receipt of such notice unless a longer period is required under federal or
state law. In addition , all electrical lines shall be capped and labeled
and not be visible to the sales area of the Supermarket.
20. REMODELING OR CLOSURE OF SUPERMARKET.
(a) Remodel of Supermarket; Relocation of Premises FSF. In the
event VONS, in its sole discretion, finds it desirable to remodel or enlarge
the Supermarket, the Premises FSF may be moved from the Premises to a
location within the Supermarket mutually satisfactory to SCB and VONS. If
remodeling occurs during the Basic Term or the first Renewal Term, the
relocation of the Premises FSF shall be completed at VONS' cost and expense,
which cost and expense shall include, but not limited to, remodeling
construction and utility hook-ups. If the
remodeling occurs during the second or third Renewal Term, the relocation of
the Premises FSF shall be completed at the cost and expense of the party
initiating such relocation, which cost and expense shall include, but not be
limited to, remodeling, construction and utility hook-ups. VONS shall use its
best efforts to avoid relocating the Premises FSF from its initially approved
Premises. The various options shall be reviewed by the parties prior to such
relocation being undertaken.
(b) Remodel or Renovation of Supermarket. Except for temporary
closures which result from fire or other casualty, VONS shall give SCB at
least ninety (90) days' written notice ("remodel Notice") in the event that
VONS temporarily closes the Supermarket for remodeling purposes. The Remodel
Notice shall describe in reasonable detail the extent of such renovation or
remodeling and the estimated time schedule for completion.
If the Supermarket is temporally closed, VONS shall reimburse SCB for
(i) all reasonable costs incurred by SCB for (1) temporary replacement
facilities in the event the Premises FSF will be closed from more than two
(2) days (unless SCB can relocated into a nearby SCB branch facility) and
relocation expenses incurred by SCB in connection with temporarily relocating
the Premises FSF or (2) construction, and relocation expenses incurred by SCB
in temporarily relocating the branch with the Supermarket (if the parties
mutually agree to such relocation), as the case may be and (ii) all
reasonable costs incurred by SCB for any required notification to customers
or governmental authorities with respect to the temporary closure of the
Premises FSF.
If SCB, in its reasonable discretion, believes such renovation work
will make it impractical to fully operate the Premises FSF for a period in
excess of thirty (30) days (or for an aggregate of fifty (50) days over any
three (3)-month period), SCB will have the right to terminate this Agreement
and to treat such renovation or remodeling as a "Closure of Supermarket by
VONS" in accordance with Section 20(c) below.
If SCB does not elect to terminate this Agreement as provided in the
immediately preceding paragraph, VONS will use it best efforts to perform
such renovation or remodeling in accordance with the Remodel Notice and in a
manner to minimize the disruption of SCB's operation of the Premises FSF.
During any such renovation, the License Fee will be equitably abated to
reflect any suspension or disruption of the Premises FSF operation.
(c) Closure of Supermarket by VONS. SCB acknowledges and agrees
that nothing contained in this Agreement shall obligate VONS to continue its
retail operation at the Supermarket. If VONS desires to cease its retail
operation at the Supermarket, VONS shall provide SCB with ninety (90) days'
written notice of its intent to cease operations and the estimated date of
closure of the Supermarket ("Notice of Closure"). SCB acknowledges that the
Notice of Closure is confidential and proprietary to VONS. Accordingly,
except for disclosure required by law (including notices to consumers) and
disclosures to key employees of SCB, SCB shall keep the Notice of Closure
confidential until it files an application to its regulators for relocation
or closure of the Premises FSF. SCB, at a time and in a manner approved by
VONS, may notify its employees and the public at large of the contemplated
closure of the Supermarket.
If the Supermarket is closed or is to be relocated in another
building in the same trade area, SCB shall have the option of terminating
this Agreement or relocating the Premises FSF in the new store under the same
terms and conditions as proved under this Agreement at the time of such
relocation. If SCB elects to relocate the Premises FSF, such relocation
shall be at SCB's cost and expense.
21. SECURITY
(a) SCB shall have the right, and VONS shall have no obligation,
to provide security for the Premises. SCB shall have the right to have an
unarmed security guard in the Premises FSF at all times. With VONS' prior
written consent, which consent shall be unreasonably withheld or delayed, SCB
may install such electronic surveillance equipment, security devices, gates
and other security equipment within the Premises as SCB deems necessary.
(b) VONS shall have the right, and SCB shall have no obligation,
to provide security for the Supermarket and the rest of the Property
excluding the Premises FSF.
(c) SCB hereby releases VONS from any claims, loss or damage that
SCB might sustain by reason of a robbery or attempted robbery of or theft or
attempted theft from the Premises FSF or the Supermarket unless perpetrated
by an employee or agent of VONS. VONS hereby releases SCB from any claims,
loss or damage that VONS might sustain by reason of a robbery or attempted
robbery of or theft or attempted theft from the Premises FSF or the
Supermarket unless perpetrated by an employee or agent of SCB. VONS and SCB
agree that any armored car companies utilized by either VONS or SCB are not
agents of VONS or SCB, respectively, for the purpose of the foregoing
reciprocal releases.
22. CONFIDENTIALITY
Each party acknowledges that in connection with this Agreement or in
the performance hereof, it has or will come into possession or knowledge of
material and information which is proprietary to the other party. Each
party, therefore, agrees to hold such material and information in strictest
confidence, not to make use thereof except in the performance of this
Agreement, and not to release or disclose it to any other party with the
exception of the parties' parent companies, subsidiaries, affiliates,
attorneys, auditors and except as may be required by law. The obligations of
each party under this Section shall survive the termination of this Agreement.
23. NO PARTNERSHIP
This Agreement does not constitute a joint venture partnership or
employer-employee relationship between SCB and VONS.
24. MORTGAGE SUBORDINATION
Upon written request of VONS, SCB agrees to subordinate its rights
under this Agreement to the liens of any mortgages or security agreements
that are presently or may hereafter be placed upon the Property and to any
and all advances to be made thereunder, and all renewals, replacements and
extensions thereof.
25. HOLDING OVER
Any holding over after the expiration of the Basic Term or any
Renewal Term of this Agreement with VONS consent shall be construed to be an
arrangement from month to month on the same terms and conditions, which,
subject to Sections 3(c) and 27 hereof, either party may terminate with a
thirty (30)-day written notice.
26. DISCLAIMER
This Agreement shall not constitute a deed or grant of easement, and
shall not be deemed an easement by virtue of any work performed by the
parties hereto.
27. LAWS
SCB shall comply with all applicable laws, ordinances, regulations
and recorded restrictions affecting the use or occupancy of the Premises and
in the conduct of its business operations. VONS shall comply with all
applicable law, ordinance, regulations and recorded restrictions affecting
the use or occupancy of the Property and in the conduct of its business
operations.
VONS recognizes and agrees that all of SCB's covenants and
obligations hereunder, including, but not limited to, the establishment,
maintenance, closure, relocation and hours of operation of the Premises FSF
and any ATM are at all times subject to SCB's obtaining the consent or
approval of all state and federal regulatory agencies now or hereafter
empowered to regulate SCB and it business operations.
28. WAIVER OF SUBROGATION
Both parties wish to eliminate (i) any cause of action which either
party may have against the other because of negligence, and the resulting
loss to property which is required to be insured in accordance with this
Agreement (whether or not self-insured) and (ii) the right of either party to
assign any cause of action by way of subrogation, to any insurance company
carrying fire and extended coverage polices on their respective properties.
Therefore, it is agreed that:
(a) Notwithstanding any other provision of this Agreement to the
contrary (including, without limitation, Section 11(f) hereof), each party
expressly waives every claim which arises or may arise in its favor and
against the other party during the term of this Agreement for any and all
loss of or damage to any of its property located within or upon the
Supermarket and/or Premises, which loss or damage is required to be insured
in accordance with this Agreement. The waiver contained in this Section 28
(a) shall be effective whether such loss or damage is actually insured or
self-insured pursuant to the terms of this Agreement.
(b) Each party agrees to give to each insurance company which has
issued to it policies of fire and extended coverage insurance written notice
of the terms of this mutual waiver and to have said insurance polices
properly endorsed (if necessary) to prevent the invalidation of said
insurance coverage by reason of said waiver (and if requested in writing) to
give to the other party a certificate from its insurance company to that
effect.
29. WAIVER OF LIENS
(a) Waiver of Liens Against Depositor's Property. VONS hereby
waives any lien for the payment of rent by SCB or the performance of any
other obligation of SCB under this Agreement ("VONS Lien") with respect to
any property of any depositors of SCB, any property or contents contained in
safe deposit boxes and any cash deposit, securities or security instrument
deposited by customers of SCB.
(b) Waiver of Liens Against SCB's Property. VONS hereby
subordinates any VONS Lien in its favor to any perfected security interest or
lease in favor of SCB's creditors that secures or evidences financing of any
furniture, fixtures or equipment of SCB located from time to time in the
Premises, provided that SCB provides VONS with a copy of any such security
interest or lease.'
30. BANKRUPTCY
The following shall be an Event of Bankruptcy under this Agreement:
(a) Either party becoming insolvent, as that term is defined in
Title 11 of the United States Code, entitled Bankruptcy, 11 U.S.C. Sec. 101
et seq. (the "Bankruptcy Code"), or under the insolvency laws of any State,
District, Commonwealth or Territory of the United States ("Insolvency Laws");
(b) The appointment of a receiver or custodian for a substantial
portion of either party's property or assets;
(c) The filing of a voluntary petition under the provisions of
the Bankruptcy Code or Insolvency Law:
(d) The filing of an involuntary petition against either party as
the subject debtor under the Bankruptcy Code or Insolvency Laws, which is
either not dismissed within thirty (30) days of filing, or results in the
issuance of an order for relief against the debtor, whichever is later; or
(e) Either party making or consenting to an assignment of the
benefit of creditors or common law composition of creditors;
Upon occurrence of an Event of Bankruptcy, subject to Section 3(c)
and 27 hereof, the party not causing the Event of Bankruptcy ("Solvent
Party") shall have the right to terminate this Agreement by written notice
thereof. If the Solvent Party elects to terminate this Agreement, everything
contained in this Agreement to be done and performed by the Solvent Party
shall cease without prejudice as of the termination date of this Agreement.
31. ENTIRE AGREEMENT
The parties agree that this Agreement and any exhibits attached
hereto set forth all the promises, agreements and understandings between them
with respect to SCB's right to install, operate and maintain the Premises FSF
at the Supermarket. It is further agreed that any amendment or modification
to this Agreement shall not be binding unless such amendment or modification
is reduced to writing and signed by both parties.
32. CAPTIONS
The captions of the several Sections of this Agreement are not part
of the context hereof and shall be ignored in construing this Agreement.
They are intended only as an aid in locating various provision hereof.
33. LANGUAGE NOT CONSTRUED AGAINST EITHER PARTY
The language of all the parts of this Agreement shall be construed
simply and according to its fair meaning and shall not be construed either
for or against either party.
34. SEVERABILITY
Each provision contained in the Agreement shall be independent and
severable from all other provisions contained herein, and the invalidity of
any such provision shall in no way affect the enforceability of other
provisions.
35. GOVERNING LAW
This Agreement is deemed to have been executed in the State of
California, and it is agreed that any controversy or claim arising from or
related in any way to this Agreement shall be governed and controlled by the
laws of the State of California.
36. BINDING EFFECT
This Agreement shall be binding upon and shall inure to the benefit
of VONS and SCB and their respective legal representatives, successors and
permanent assigns.
37. NOTICES
a) All notices required or permitted hereunder shall be in
writing and signed by a duly authorized representative of the party making
the same. All notices shall be deemed effective when delivered personally or
to Federal Express Corporation or similar overnight delivery service or two
(2) business days following deposit in the United States mail, registered or
certified, return receipt requested, postage or overnight delivery charge
prepaid, addressed as follows:
(i) If to VONS, then to:
The Vons Companies, Inc.
000 Xxxxxxxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxxx 00000-0000
Attention: Legal Department
The License Fee shall be payable to:
The Vons Companies, Inc.
X.X. Xxx 00000
Xxx Xxxxxxx, Xxxxxxxxxx 00000-0000
(ii) If to SCB, then to:
Southern California Bank
0000 Xxxx Xx Xxxxx Avenue
X.X. Xxx 00000
Xxxxxxx, Xxxxxxxxxx 00000-0000
Attention: Xx. Xxxxx X. XxXxx
Executive Vice President
(b) The names and addresses for the purpose of this Section may
be changed by giving written notice of such change in the manner herein
provided for giving notice. Unless and until such written notice is actually
received, the last name and address stated by written notice or provided
herein, if no such written notice of changes has been received, shall be
deemed to continue in effect for all purposes hereunder.
38. ATTORNEY'S FEES; EXPENSES
If any legal action is instituted under this Agreement, the
prevailing party shall be entitled to recover all costs incurred therein or
in any ancillary proceeding or on appeal, including, but not limited to,
reasonable attorneys' fees and expenses, in addition to any other relief
granted.
39. NONWAIVER OF RIGHTS
Unless herein expressly proved to the contrary, if either party
elects to terminate this Agreement as set forth herein, such election shall
not be deemed a waiver of any right which such party may have at law or in
equity against the other party for any breach of this Agreement.
40. INTEREST ON OVERDUE OBLIGATIONS
Any amount due hereunder which is not paid when due shall bear
interest at the "Interest Rate" from the date of delinquency to and
including the date of payment. The "Interest Rate" shall mean three (3)
percentage points over the discount rate announced from time to time by the
Federal Reserve Bank, San Francisco, California. In no event shall the rate
of interest hereunder be greater than the highest rate then allowable by law.
An installment of the License Fee shall be considered past due ten (10) days
following notice of nonpayment thereof by VONS to SCB; any other amount
required to be paid hereunder shall be considered past due thirty (30) days
following notice of nonpayment thereof by the party of whom such payment is
due to the other.
41. RETAIL CLERKS UNION
VONS employs members of the United Food and Commercial Workers Union
(the "Union") for its supermarket operations. Should (i) the Union assert
that Section 6 of this Agreement violates VONS' collective bargaining
agreement contract with the Union or that any SCB employees, agents, or
representative are deemed to be part of VONS' collective bargaining agreement
contract with the Union and such assertion is a condition to the negotiation
of such collective bargaining agreement or (ii) the Supermarket or Premises
FSF be subjected to handbilling, picketing, works stoppages, or other
economic action which is directly related to Section 6 of this Agreement or
(iii) any successor union with jurisdiction over VONS' supermarket operations
make an assertion similar to that set forth in subsection (i) above, either
VONS or SCB shall have the right to terminate this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first set forth above.
VONS: THE VONS COMPANIES, INC.
a Michigan corporation
By: /s/
-------------------------------
Print Name: Xxxxxx X. Xxxxxx
-----------------------
Title: SR. Vice President
----------------------------
SCB: SOUTHERN CALIFORNIA BANK
a California banking corporation
By: /s/
-------------------------------
Print Name: Xxxxx X. XxXxx
-----------------------
Title: EVP & COO
----------------------------
SCHEDULE "1"
LICENSE FEE STRUCTURE
Supermarket Banking Facility
Vons #216
0000 Xxxx Xxxxx Xxx Xxxxxx Xxxx
Xxxxxxx Xxxxx, Xxxxxxxxxx
Vons's Average Customer Count
During Final 12 Weeks of Each
Year of Renewal Terms
ANNUAL LICENSE FEE DURING RENEWAL TERMS
Years Years
1 & 2 3,4 & 5
of First of First Second Third
Renewal Renewal Renewal Renewal
Term Term Term Term
-------- -------- ------- -------
Less than 10,000 customers per week: $15,000 $18,000 $23,000 $23,000 plus
annual 4%
increase
10,000 to 14,999 customers per week: $18,000 $21,000 $26,000 $26,000 plus
annual 4%
increase
15,000 to 19,999 customers per week: $21,000 $24,000 $29,000 $29,000 plus
annual 4%
increase
20,000 to 24,999 customers per week: $25,000 $28,000 $33,000 $33,000 plus
annual 4%
increase
25,000 or more customers per week: $30,000 $33,000 $38,000 $38,000 plus
annual 4%
increase
