Exhibit 10-7
Carolina National Bank & Trust Co. (Proposed), ("Carolina") and HBB
Associates, LLC, ("HBB") hereby agree to lease certain space (0000 Xxxx Xxxxxx)
located in the Xxxxxxxxx Building, 0000 Xxxx Xxxxxx (corner of Main and
Washington Streets), Columbia, South Carolina on the following terms and
conditions:
Demised Premises: Approximately 9,718 square feet located on the first floor,
mezzanine floor and basement of the Xxxxxxxxx Building, 0000 Xxxx Xxxxxx.
Term: Five (5) Years from Rental Commencement Date.
Option Periods: Five, 5-Year Option Periods.
Rental Rate: Years 1 and 2 - $9 per sq. ft. annually, with annual rent amount
payable one-twelfth per month.
Years 3, 4 and 5 - $10 per sq. ft. annually, with annual rent
payable one-twelfth per month.
Option Periods - Ten Percent (10%) escalation in rent over rent
for period immediately preceding the Option Period.
Rental Commencement Date: February 1, 2002.
Operating Expenses: The rental specified herein is inclusive of any and all
amounts due from Carolina for the Demised Premises to include taxes, insurance,
janitorial, utilities, maintenance, and repairs. Carolina shall not be
responsible for any operating expenses attributable to the Demised Premises
during the initial term and any Option Period.
Advance Rental: Commencing November 1, 2001 and on the first (1st) day of each
month thereafter until the Rental Commencement Date, Carolina will pay HBB
advance rental in the amount of $1,500 per month. All advance rental paid by
Carolina shall be applied to the first month's rental due on February 1, 2002.
Condition of Demised Premises: Carolina's lease of the Demised Premises shall
include all fixtures, furniture, improvements and property of any kind located
in the Demised Premises as of the date hereof. The Demised Premises shall be
delivered to Carolina in broom-clean condition on August 15, 2001.
Contingencies: Carolina may terminate its agreement to lease the Demised
Premises should any or all of the following contingencies not be satisfied in
Carolina's sole and absolute discretion: (1) Carolina must receive full approval
of its Board of Directors of this agreement; (2) Carolina must receive all
necessary regulatory approvals required in connection with the establishment and
opening of a national bank and all matters related thereto at the Demises
Premises; (3) Carolina must obtain an agreement for parking spaces to be located
at the corner of Sumter and Washington Streets to include up to fifteen (15)
spaces on street level and four (4) spaces in the covered structure, on terms,
conditions and other matters acceptable to Carolina; (4) HBB, at its costs and
expenses, must have corrected the existing moisture problem in the basement of
the Demised Premises to Carolina's satisfaction; (5) Carolina must be able to
obtain appropriate certifications and inspections from third parties engaged by
Carolina as to the mechanical, electrical and plumbing systems in the Demised
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Premises and the correction of the moisture problem in the basement, all in form
and content acceptable to Carolina; and (6) Carolina must obtain an acceptable
lease for a drive-through banking facility at a location and in proximity to the
Demised Premises and otherwise on terms and conditions acceptable in Carolina's
sole and absolute discretion.
Lease Agreement: Carolina and HBB's agreement to lease the Demised Premises as
set forth herein is not subject to the execution by the parties of a more
definitive Lease Agreement, none being required by the parties thereto. However,
the parties shall endeavor to execute a Lease Agreement in form and content
acceptable to the parties embodying the terms set forth herein. The failure of
the parties to execute such a Lease Agreement shall not effect the
enforceability of the terms of this Agreement, the parties thereto acknowledging
that this agreement constitutes a binding lease agreement subject to termination
by reason of the contingencies set forth herein.
IN WITNESS WHEREOF, the parties have executed their signature as of
this 24th day of July, 2001.
WITNESSES: LESSOR:
HBB ASSOCIATES, LLC
By: Xxxx X. Xxxxxxx
------------------------- ---------------------------------------
Its: Member
LESSEE:
CAROLINA NATIONAL BANK &
TRUST COMPANY
(Proposed)
By: Xxxxx X. Xxxxxx
------------------------- ---------------------------------------
Its: President
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