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EXHIBIT 10.8
LEASE AGREEMENT
ALLISON, ADCOCK, RANKIN, LLC
LESSOR
P.O. BOX 1735
CONWAY, ARKANSAS 72033
501-336-0050
AND
FIRST STATE BANK
LESSEE
KNOW ALL MEN BY THESE PRESENTS:
THAT
ALLISON, ADCOCK, RANKIN, LLC, hereinafter referred to as Lessor
does
hereby lease, let and rent unto FIRST STATE BANK, hereinafter
called Lessee, for
considerations and terms hereinafter set out, the following
described premises
located in Conway, Arkansas:
1.
DEMISED PREMISES: approximately 3300 square feet of office space
with a
three car drive through canopy and one lane drive thru ATM, on the
Northwest
corner of a strip commercial center currently under construction,
located at the
Southwest corner of Hogan Road and Tyler Street, Conway, Arkansas.
Lessor will
construct the interior of the suite per the architectural plans
provided by Ken
Ingram and attached hereto as exhibit "A" and made a part hereof as
if set forth
herein word for word.
The
Lessee shall be responsible for all costs associated with the
purchase
and installation of the Diebold Equipment, and all banking
equipment, including
computer networking, video equipment and mechanical related
thereto.
2.
LEASE TERM: This Lease shall be effective for a primary term of ten
(10)
years, beginning upon completion of the building, and ending ten
(10) years
thereafter. The exact beginning and ending dates will be addressed
in an
addendum hereto upon completion of the build out.
3.
RENT: The lessee shall pay to Lessor a monthly rental of $5,425.00
to be
paid by the first of each month. A late fee of 5% shall be assessed
for any
payment that is not received by the 10th of each month. No deposit
shall be
required, however, upon execution of this Lease Agreement, the
lessee shall pay
$11,410.00 which shall be applied to the first and last month's
rent of the
initial lease term.
It is further agreed that a rent escalation shall be in effect
during
the term of the lease as follows:
1. Beginning
with year four (4) the rent shall increase to $5,70000
per month.
2. Beginning
with year seven (7) the rent shall increase to
$5,985.00 per month.
4.
EXTENSIONS: The Lessee shall have the right to extend this lease
for two
(2) additional terms of
1
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five (5) years each from the expiration of the primary term hereof.
Should the
Lessee choose to exercise this option, the monthly rental will
increase 5% to
$6,285.00 for the first term, and 5% to $6,600.00 for the second
term. The
Lessee shall give the Lessor sixty (60) days notice prior to
exercising its
option.
5.
BUILDING USE: It is understood and agreed that the premises shall
not be
used for any other purpose than for a banking office with drive
thru without the
written consent of the Lessor. Lessee may assign this lease to
other persons
only with the written approval of the Lessor. Said approval may not
be
unreasonably withheld.
6.
TAXES, INSURANCE AND HOLD HARMLESS AGREEMENT: The Lessor will pay
all
real estate taxes on said property during the term of this lease,
and will, at
its election, keep said improvements insured against such hazards
and for such
amounts as it sees fit, at its own expense.
It
is understood and agreed that lessee shall carry public
liability
insurance with minimum limits of $1,000,000.00 covering the
premises and the use
and occupancy of the same, including any adjoining sidewalk, with
first party
named as additional insured, and shall furnish a copy of said
policy to Allison,
Adcock, Rankin, LLC. Lessee shall also be responsible for insuring
its personal
property within the building. The Lessor shall not be responsible
for damage of
any kind to Lessee's personal property or bod
