EXHIBIT 10.6
LEASE AGREEMENT
WITH OPTION TO PURCHASE
KNOW ALL MEN BY THESE PRESENTS:
By and between TRINITY DEVELOPMENT COMPANY, INC., hereinafter referred to
as LESSOR, and FIRST STATE BANK OF CONWAY, hereinafter referred to as LESSEE,
does hereby agree to LEASE the following described real estate located in
Xxxxxxxx County, Arkansas, to wit:
See attached Exhibit A.
This LEASE shall be effective for a primary term of seven (7) years
beginning on the date hereof at a LEASE amount of $3,000.00 per month, to be
paid in advance by the first day of each month during the entire term of this
LEASE. LESSOR further grants LESSEE an option to renew said LEASE for one (1)
term of five (5) years upon the same terms and conditions as are contained in
the original LEASE, except rental amount shall increase to $3,500.00 per month.
The LESSEE is given a grace period of twenty (20) days in which to comply with
the terms of this LEASE in the event of default.
LESSOR further grands the LESSEE the option to purchase the Leased premises
at the end of the seven (7) year term hereof. Should the LESSEE choose to
initiate its option to purchase the LEASED premises at the end of the seven (7)
year term hereof, or at any time during the five (5) year renewal term, as
mentioned above. The purchase amount shall be Ten Dollars ($10.00) per squire
foot as set
forth in the description herein. The LESSEE must provide the LESSOR with sixty
(60) days notice prior to initiating its option to purchase or extend the LEASE.
LESSEE is hereby granted the right to sub-LEASE the LEASED premises with
the written approval of LESSOR, but no such sub-LEASE shall relieve the LESSEE
of its liability hereunder.
It is understood and agreed that LESSEE does intend to utilize said lands
for the operation of a branch banking facility. All improvements made to or upon
the LEASED premises, including but not limited to buildings, structures,
driveways, curbs, parking areas, and landscaped areas shall be at the sole
expense of LESSEE LESSEE agrees at its sole expense to landscape and maintain
such areas in a neat and clean manner throughout the term of this LEASE and all
extensions hereof. Any buildings which LESSEE may erect upon the LEASED premises
shall be and remain the property of the LESSEE for the full term of this LEASE
and options for renewal and/or purchase. Should the LESSEE not exercise its
option to renew or purchase, the LESSEE may attempt to locate a buyer for the
improvements with the LESSOR having the right to accept or deny said buyer. Said
acceptance shall not be unreasonably withheld. Should the LESSEE be unable to
find a suitable purchaser, any and all improvements upon the property shall
become the property of the LESSOR. Should the LESSEE be unable to find a
suitable purchaser and/or choose not to sell the LEASED premises, it will be
entitled to remove, at its option, all the
equipment located in or upon the above-described property. All other property
not removed will be the sole and exclusive property of the LESSOR.
LESSEE shall pay all taxes and special assessments which may be levied upon
the value of the improvements placed upon the property and the increase in value
of the real property after the execution hereof. LESSOR shall pay all taxes and
special assessments which are allocated to the value of the real property
without the addition of the improvements at the date of the execution hereof.
LESSEE agrees that it will indemnify and hold LESSOR harmless from any and
all claims, suits, or demands for injury, loss or damage to persons or property
arising from or out of the LESSEE'S use and occupancy of the LEASED premises and
the operation of LESSEE'S banking facility thereon, and for such purpose LESSEE
agrees that it will procure, maintain in continuous effect during the term of
such LEASE or any extension thereof, and pay all premiums on one or more
policies of public liability insurance, sometimes called "premises liability
insurance," providing indemnity in an amount sufficient to discharge any
reasonably foreseeable claim or demand arising as above set out. LESSEE further
agrees to cause LESSOR to be named as additional insured parties under the
aforesaid policy of insurance and to furnish to LESSOR a certificate of
insurance for such coverage.
It is understood and agreed that all repairs, improvements, additions or
extensions made to or upon the LEASED premises during the term of this LEASE or
any extension hereof, whether made as a part of the construction of any banking
facilities or thereafter, shall be done at the sole expense of LESSEE, and
LESSEE shall maintain said premises in a good state of repair.
Not withstanding any other provisions contained in this LEASE, in the event
the LESSEE is closed or taken over the banking authority of the State of
Arkansas or any other supervisory authority, the LESSOR may terminate the LEASE
only with the concurrence of such banking authority or other supervisors
authority and any such; authority in any event have the election either to
continue or terminate the LEASE; provided that in the event this LEASE is
terminated.
This LEASE and the provisions hereof shall inure to the benefit of LESSOR
and LESSEE and their respective heirs, successors, administrators, executors and
assigns.
THIS INSTRUMENT executed this __________ day January 2000.
TRINITY DEVELOPMENT COMPANY, INC. LESSOR
BY: /s/ Xxx Xxxxxx
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Xxx Xxxxxx Xx., President
FIRST STATE BANK OF CONWAY, LESSEE
BY: /s/ Xxxx Xxxxxxx
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Xxxx Xxxxxxx, Chairman of the Board
BY: /s/ Xxxxx Xxxxx
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Xxxxx Xxxxx, President
