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EXHIBIT 10.6
July 12, 1999
Oak Grove Associates, LLC
c/o Xxxxxx Xxxxxxx, President
Xxxxxxx Development Assoc.
P. O. Box 3524
Spartanburg, SC 29304
RE: Letter of Intent to Lease
Parcel on SC Highway 296 (Reidville Road)
Spartanburg, SC
Dear Xxxxxx:
Please accept this letter an expression of our intent in leasing the above
referenced property under the following terms and conditions:
1. Lessee: First National Bank of Spartanburg (Proposed) and/or assigns
2. Property: 1.00 +/- acres located on Reidville Road as an out parcel to
the Oak Grove Shopping Center (Xxxxxx Xxxxxx), not to
exceed 200 feet of frontage from curb line on entrance road
into center, as measured 100' back of Reidville Road R/W.
3. Length of Lease: 20 Years
4. Lease Rate: Years 1-5 Years 6-10 Years 11-15 Years 16-20
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$48,000 $53,000 $59,000 $68,000
5. Options: (4) Five year options based on the same escalation as
provided during the last five years of the base term.
6. Inspection Period: Lessee shall have Ninety (90) days to inspect the property to
determine if the site is suitable for its building layout and
design and to receive the OCC approval and Bank Board
approval.
7. Start Date: Rent shall commence on the first day of business or six
months after Bank Regulatory Authority approval, whichever
comes first, but in all instances, rent shall begin on / or
before May 1, 2000.
8. Survey/Title: Lessor to provide the boundary survey and clear title showing
no unacceptable defects or limitations.
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Oak Grove Associates, LLC July 12, 1999 Page 2
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9. Utilities & Storm All utilities shall be stubbed out to the property lines,
Water Retention: including water, sewer, and natural gas. Lessor agrees to
provide for Xxxxxx's storm water retention so the Lessee can
develop entire site.
10. Curb Cut/Driveway Lease shall be contingent upon Lessor providing Lessee
Easement: a shared curb cut to the access driveway from Reidville Road.
11. Environmental: Lessor warrants and represents that, to the best of its
knowledge, the Property has not environmental containment
and/or defects, and that soil is acceptable for Lessee to
build upon.
12. Commissions: There are no real estate commissions to be paid in this
transaction.
13. Information: Lessor agree to share any pertinent studies, information,
material(s), etc. as they relate to the property.
14. Temporary Facility: It is anticipated that it will xxxx 0 to 9 months to complete
construction of the permanent facility. Lessor agrees to allow a
temporary, or modular facility, to be placed on this property, or the
adjacent property, during construction of the permanent facility,
which construction will be commenced and will proceed with all
reasonable haste.
15. Approvals: Agreement shall be contingent upon Lessee obtaining
approvals from all local and state government authorities and
utility companies, as well as the above mentioned Board
approvals. Architecture and layout subject to Oak Grove
Associates, LLC approval.
16. Deposit: A $5,000 deposit as xxxxxxx money shall be paid to Oak Grove
Associates, LLC within 48 hours of acceptance by the limited
liability company. This deposit will be credited to the lease
if xxxxxx accepts this offer to lease.
The terms and conditions of the Letter of Intent are valid only if accepted by
the Lessor and the letter is returned to me prior to 5:00 PM Eastern Standard
Time, Friday, July 16, 1999. If you are prepared to proceed to a Lease
Agreement upon these terms and conditions, please indicate your acknowledgement
where indicated below and Xxxxxx will prepare a Lease draft. Otherwise, please
call me with any questions.
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Oak Grove Associates, LLC July 12, 1999 Page 3
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I look forward to working with you on the transactions.
Sincerely,
/s/ Xxxxx Xxxxxxx
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Xxxxx X. Xxxxxxx
President & CEO
Agreed and Accepted:
Lessor: Oak Grove Associates, LLC
By: /s/ X. Xxxxxx Xxxxxxx
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(Print Name) X. Xxxxxx Xxxxxxx
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Its: Manager
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Date: 7/15/97
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