NORTH CAROLINA LEASE AGREEMENT
LINCOLN COUNTY
This lease agreement, made and entered into as of the 1st day of
September, 1997, by and between D. Xxxx Xxxx, III and wife, Xxxxx X. Xxxx
(hereafter called "Lessor"), and Lincoln Bank of North Carolina (hereinafter
called "Lessee"),
WITNESSETH:
In consideration of the rents hereinafter agreed to be paid and in
consideration of the mutual covenants and agreements hereinafter recited, Lessor
does hereby lease and demise unto Lessee and Lessee does hereby lease and take
as tenant from Lessor all of that real property described in Exhibit "A"
attached hereto and incorporated by this reference.
To have and to hold the said Premises unto the Lessee upon the
following terms and conditions:
1. Term. The initial term of this Lease shall begin on the 1st day of
September 1997. It shall expire at 12:00 midnight August 31, 2002. It
is agreed that, at the expiration of the initial term of this Lease,
Lessee shall have the right and option to renew the Lease for one (1)
additional five (5) year term. The renewal terms shall commence as of
the end of the base term of this Lease and shall be subject to and in
accordance with all terms and conditions set forth in this Lease. If
Lessee shall desire to exercise this right and option, it shall give
Lessor notice in writing not less than ninety (90) days prior to the
expiration of the then current term of this Lease. If Lessee shall
fail to provide such notice to Lessor within such time period, it
shall be conclusively deemed that Lessee has elected not to renew and
extend the term of this Lease as aforesaid, time being of the essence.
2. Rent. Lessee shall pay to the Lessor the following sums payable in
advance on the first day of each month in installments as follows.
Payments for the optional lease term will be negotiated in good faith
based on comparable market rates, but under no circumstances shall the
amount be less than $3,658.67 monthly.
Year Annual Rent Monthly Payment
1 34,944 2,912.00
2 37,184 3,098.67
3 39,424 3,285.33
4 41,664 3,472.00
5 43,904 3,658.67
3. Default. The occurrence of one or more of the following events (herein
called "Events of Default") shall constitute default by the Lessee:
A. Failure to pay rent or any other payments hereunder when due if the
failure to pay is not cured within fifteen (15) days after notice
thereof has been given to Lessee.
B. Failure to perform any other provision of this Lease if the failure
to perform is not cured within fifteen (15) days after notice thereof
has been given to Lessee.
4. Lessor's remedies upon default by Lessee. Lessor shall have the
following remedies if Lessee commits a default. These remedies are not
exclusive; they are cumulative in addition to any remedies now or later
allowed by law.
A. Lessor shall have the right to continue this Lease in full force
and effect.
X. Xxxxxx shall have the right to terminate this Lease upon first
giving to the Lessee thirty (30) days notice to vacate. Said thirty
(30) days notice to vacate shall be in addition to the fifteen (15)
days given to cure default.
5. End of Term. Upon the expiration of this Lease, Lessee shall quit and
surrender to Lessor the Premises, broom clean, in good order and
condition, ordinary wear and tear expected and Lessee shall remove
from the premises all of its property.
6. Use of Premises. Lessee shall not use the Premises or any portion
thereof for any illegal or unlawful purpose and will not cause or
permit nuisance to be created or maintained therein.
7. Taxes. During the term of the Lease, and any extensions, the Lessor
shall pay all ad valorem taxes on the premises and the Lessee shall
pay all taxes on the contents.
8. Insurance. During the term of this Lease, and any extensions, the
Lessor shall keep the leased premises insured to its replacement value
against fire and other normally insured casualties as well as against
public liability. The Lessee shall keep the contents insured as well
as provide a reasonable amount of public liability coverage. Lessee
shall indemnify Lessor against any loss or damage for personal injury
arising out of Lessee's use of the premises.
9. Utilities. During the term of the lease and any extensions the Lessee
shall pay for all utilities used by it.
10. Fire or other casualty. In the event that before or during the term of
the Lease the leased premises or any part thereof shall be damaged by
fire or other casualty which renders the leased premises or any part
untenable for the purpose for which they are used by Lessee, Lessor
shall have the option to repair the building or terminate the Lease.
However, if the Lessor can not or does not restore the premises to a
state that is as good as the condition thereof immediately prior to
the damage, within sixty (60) days, Lessee has the right and option to
terminate this Lease. During the period of repair the Rent shall be
reduced to an amount which bears the same ratio to the Rent as the
portion of the leased premises then available for the use to the
Lessee bears to the entire leased premises. Upon successful completion
of such repairs, the rent shall thereafter be paid as if no fire or
other casualty had occurred. Notwithstanding the foregoing, Lessor
shall have no obligation to replace or repair any property on the
leased premises belonging to Lessee or to any one claiming through or
under Lessee, nor shall Lessor be required to make repairs costing
more than the amount of insurance proceeds paid as a result of Lessee
complying with the provisions of paragraph 8. Any repairs made over
and above the amount of insurance paid shall be at Lessee's
responsibility.
11. Maintenance and Repairs. Lessee shall take good care of the leased
premises including the grounds, driveways and parking, and shall, at
Lessee's sole cost and expense, make all repairs in and to the
interior of the leased premises, ordinary and extraordinary,
structural and otherwise, including, but not limited to, repairs to
the doors, windows, glass, plumbing, wiring and heating systems that
will sustain the premises in a normal working condition. Lessor shall
at Lessor's sole cost and expense, make all repairs to the roof and
outer structural walls.
12. Notices. Any notice or demand which by any provisions of this
agreement is required or allowed to be given by either party to the
other shall be deemed to have been sufficiently given for all purposes
when made in writing and sent in the United States mail as certified
or registered mail, and returned receipt requested, postage prepaid
and addressed: (a) if to Lessee, to 000 Xxxx Xxxx Xxxxxx, Xxxxxxxxxx,
Xxxxx Xxxxxxxx, 00000 and (b) if to Lessor, to D. Xxxx Xxxx, III, Xxxx
Xxxxxx Xxx 000, Xxxxxxxxxx, Xxxxx Xxxxxxxx, 00000, or to such other
place as Lessor may from time to time designate in notice to Lessee.
13. Successors and Assigns. The provisions of this Lease shall bind and
inure to the benefit of Lessor and Lessee, and their respective
successors, heirs, legal representatives and assigns.
14. Integration and binding effect. The entire agreement, intent and
understanding between Lessor and Lessee is contained in the provisions
of this Lease and any stipulations, representations, promises or
agreements, written or oral, made prior to or contemporaneously with
this Lease shall have no legal or equitable effect or consequence
unless reduced to writing herein. This Lease shall be governed by and
construed pursuant to the laws of the State of North Carolina.
15. Compliance by Lessee with governmental regulations. In the performance
of any acts required of or permitted Lessee under the provisions of
this Lease, Lessee shall obey and comply with all lawful requirements,
rules, regulations, and ordinances of all legally constituted
authorities, existing at any time during the continuance of such
performance in any way affecting the Premises or the use of the
Premises by lessee. Such compliance shall include compliance by Lessee
with requirements of the Occupational Safety and Health Act, and all
amendments thereto, as the same applies to the Lessee's use of the
Premises.
16. Subordination. If required by Lessor's lender, Lessee will subordinate
this Lease to a first deed of trust.
17. Assignment of Subletting. Lessee may assign this Lease in whole or in
part, or sublet all of any part of the leased premises, with the
written approval of the Lessor in each instance; provided that consent
of the Lessor is given, Lessee shall remain fully liable on this
Lease. It is understood and agreed that Lessor's consent will not be
unreasonably withheld; provided a comparable market rate is agreed
upon for the Assignee or the Sublessee to pay the Lessor for the
remainder of the initial term of the Lease.
EXHIBIT "A"
Beginning at an iron stake at the point of intersection of the west
line of South Poplar Street with the south line of East Main Street, said point
of beginning being 1.26 feet westerly from the west edge of the concrete
sidewalk on South Poplar Street, and 6.7 feet southerly from the south edge of
the concrete sidewalk of East Main Street; and runs thence with the said south
line of Xxxx Xxxx Xxxxxx, Xxxxx 00 deg. 00 min. West 90.00 feet to an iron
stake, said point being 1.83 feet westerly from the east end of the concrete
wing wall of the overhead bridge on East Main Street; thence South 23 deg. 21
min. East, and parallel to South Poplar Street, 116.00 feet to an iron stake on
the line of property, now or formally of W.H. Childs; thence with the said line
of W.H. Childs property, North 67 deg. 00 min. East, and parallel to East Main
Street 90.00 feet to an iron stake on the west edge of the concrete sidewalk on
said street; thence with said west edge of South Poplar Street, North 23 deg. 21
min. West 116.00 feet to the point of Beginning, all being substantially as
shown on the plat of said piece of parcel of land prepared by Xxxxxx X. Xxxxx,
Civil Engineer, of Charlotte, NC, and bearing dated November 4, 1930.
In witness whereof, the parties hereto have duly executed this lease
agreement and have her unto set their seals as of the day of the year
first above written:
Lessor:
/s/ D. Xxxx Xxxx, III
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D. Xxxx Xxxx, III
/s/ Xxxxx X. Xxxx
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Lessee:
Attest: Lincoln Bank of North Carolina
/s/ Xxx X. Xxxxxx by:
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Xxx X. Xxxxxx /s/ Xxxxx X.Xxxx, III
Assistant Secretary -----------------------
Xxxxx X. Xxxx, III
