Exhibit 10.4(a)
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STATE OF SOUTH
CAROLINA
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LEASE
AGREEMENT
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COUNTY OF
HORRY
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This Lease
Agreement (“Lease”) entered into this 13 th
day of November, 2007, by and between Myrtle Beach Farms
Company, Inc., a South Carolina corporation, hereinafter
called the “Landlord” and Coastal Carolina Dream
Team, LLC , a South Carolina limited liability company,
hereinafter called “Tenant”.
WITNESSETH:
The Landlord, for and
in consideration of the covenants and agreements hereinafter set
forth to be kept and performed by the Tenant, demises and
leases unto the Tenant and the Tenant does hereby rent from the
Landlord the premises hereinafter specifically set
forth.
1.
Description of
Premises : T he real estate owned by Landlord located at
2305 N. Oak St. in the City of Myrtle Beach, South Carolina 29577,
together with the existing buildings, parking lots, drive-through
facilities and other improvements thereon and all other rights,
easements and privileges appurtenant thereto, as more particularly
described on Exhibit “A” attached
hereto.
2.
Term
: The Term of this
Lease shall be for three (3) years, beginning on
November 1, 2007 and terminating, unless extended as provided
herein, on October 31, 2010. Provided Tenant is not in
default of this Lease, the Tenant, at its option may extend the
Lease for four (4) Extension Terms of one (1) year with
rent increasing three percent (3%) over the prior Term’s Rent
charge for each Extension Term. Tenant must notify Landlord
of its intent to exercise an Extension Option in writing no later
than ninety (90) days prior to the expiration date of the then
current Term.
3.
Rent
: The Tenant shall
pay to the Landlord Seven Thousand and 00/100 Dollars ($7,000.00)
per month, due and payable on or before the first (1 st
) day of each month, beginning November 1, 2007. The
Tenant shall pay to the Landlord Fourteen Thousand and 00/100
Dollars ($14,000.00) per month, due and payable on or before the
first (1 st ) day of each month, beginning May 1,
2008. All rent payments should be mailed to Landlord at the
following payment address: P.O. Box 9179, Myrtle Beach,
SC 29578-9179.
In the event
Tenant shall exercise its first (1 st ) Extension Term,
the Tenant shall pay to the Landlord Fourteen Thousand Four Hundred
Twenty and 00/100 Dollars ($14,420.00) per month, due and payable
on or before the first (1 st ) day of each month,
beginning on November 1, 2010.
In the event
Tenant shall exercise its second (2 nd ) Extension Term,
the Tenant shall pay to the Landlord Fourteen Thousand Eight
Hundred Fifty-Two and 60/100 Dollars ($14,852.60) per month, due
and payable on or before the first (1 st ) day of each
month, beginning on November 1, 2011.
In the event
Tenant shall exercise its third (3 rd ) Extension Term,
the Tenant shall pay to the Landlord Fifteen Thousand Two Hundred
Ninety-Eight and 18/100 Dollars ($15,298.18) per month, due and
payable on or before the first (1 st ) day of each
month, beginning on November 1, 2012.
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In the event
Tenant shall exercise its fourth (4 th ) Extension Term,
the Tenant shall pay to the Landlord Fourteen Thousand Seven
Hundred Fifty-Seven and 13/100 Dollars ($15,757.13) per month, due
and payable on or before the first (1 st ) day of each
month, beginning on November 1, 2013.
4.
Security Deposit : The Tenant shall pay to Landlord
the sum of Fourteen Thousand and 00/100 Dollars ($14,000.00) upon
execution of this Lease, to be held by Landlord as a Security
Deposit. The Security Deposit (a) shall be retained by
the Landlord as security for Tenant’s payment of the Rent and
performance of all of Tenant’s other obligations under the
provisions of the Lease; (b) shall not be deemed to represent
payment of any Rent; and, (c) shall not bear interest while
retained by the Landlord. Upon termination of this Lease, so
long as Tenant is not in default of this Lease, any portion of the
Security Deposit which is not applied or retained pursuant to past
due rental charges or damages to the Demised Premises shall be
returned to the Tenant within thirty (30) days after the expiration
of the Term of this Lease. Landlord shall have the right to
apply any part of the Security Deposit to cure any Event of
Default. The application of the Security Deposit shall be at
the sole discretion of Landlord. It is expressly understood
that this remedy is in addition to all other remedies vested in
Landlord.
5.
Use of
Premises : Tenant shall be permitted to use the
Premises, in whole or in part, for office space and retail banking
operations, and for no other purpose without the prior written
consent from Landlord. The Tenant understands and
acknowledges that Tenant’s use of the Premises for the retail
banking operations shall not commence until May 9,
2008.
6.
Tenant
Allowance : Landlord agrees to give Tenant an
allowance toward the cost of Tenant’s upfit work within the
Premises, herein after referred to as the “Allowance”,
which shall be equal to Twenty-Five Thousand and 00/100 Dollars
($25,000.00).
One-half (1/2) of
the Allowance shall be paid to Tenant upon full execution of this
Lease Agreement with the balance of the Allowance being paid to
Tenant upon the date Tenant shall open the Premises to the public
for business; provided, Tenant shall have furnished Landlord with
the lien waivers for work costing Five Thousand and 00/100 Dollars
($5,000.00) or more and completion of the improvements required to
be made by Tenant and acquisition by Tenant of an unconditional,
permanent Certificate of Occupancy.
The lien waiver
referred to in previous paragraph shall include the execution by
Tenant and each of its contractors, suppliers and materialmen and
the delivery to Landlord of a valid and enforceable waiver of lien
in form and substance satisfactory to Landlord for all work, labor,
services or material performed or furnished by, through or under
such contractors, supplier or materialman costing Five Thousand and
00/100 Dollars ($5,000.00) or more for Tenant in respect of the
Premises including such waiving party’s sworn affidavit that
all contractors, suppliers or materialmen of such waiving party
have been paid in full.
7.
Repairs and
Maintenance : Upon occupancy of the Premises, the
Tenant shall not cause or permit any waste, damage or injury to the
Premises, including but not limited to, the existing buildings,
parking lots, drive-through facilities and other improvements
thereon. The Tenant at its sole cost and expense shall keep
the Premises as now or hereafter constituted with all improvements
made thereto clean and in good condition, normal wear and tear
excepted.
T enant shall, at its cost, contract with a
service company (which Landlord, at its option, may reasonably
designate or approve) for the monthly maintenance of the heating,
ventilating and air conditioning equipment serving the
Premises. Tenant shall furnish a copy of the
service
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contract to Landlord within ten (10) days
after opening for business, and a copy of any subsequent contracts
from time to time during the Term.
Tenant shall, at its cost, retain a licensed,
bonded professional pest and termite control service (which
Landlord, at its option, may reasonably designate or approve) to
perform at the minimum annual inspections of the Premises to keep
the Premises free of infestation by insects, rodents and vermin,
and shall promptly cause any corrective or extermination work
reasonably recommended by such service to be performed. The
Tenant shall provide the Landlord with a copy of the termite and
pest control contract and annual renewals of the
contract.
Tenant agrees to initiate and carry out a
program of regular maintenance and repair of the Premises,
including the painting or refinishing of all areas of the interior
of the Premises, so as to impede, to the extent possible,
deterioration by ordinary wear and tear and to keep the safe in
attractive condition.
The Landlord
hereby covenants that as of the commencement date of the term of
this Lease the heating, ventilating and air conditioning equipment
serving the Premises shall be in good working order. Landlord
further covenants to provide written proof that as of the
commencement date of the Term of this Lease that the Premises are
free and clear of termites and pests. The Landlord shall be
responsible for any structural repairs, defined as exterior walls
and roof, of the Premises during the Term, except for any damage
thereto caused by any act or omission of Tenant or its agents,
employees or invitees.
8.
Landlord’s Right
of Access : Landlord and its agents, employees and
any person authorized by Landlord shall have the right to enter the
Premises (a) at all reasonable times, upon reasonable prior
notice (except in an emergency), for the purpose of examining or
inspecting the same to ascertain if they are in good repair, making
such alterations, repairs, improvements or additions to the
Premises as Landlord may be required or permitted to make
hereunder, exhibiting the Premises to prospective purchasers and
lenders and posting notices which Landlord may deem reasonable and
necessary for its protection, and (b) at any time in an
emergency. During the six (6) months prior to the end of
the Term, Tenant shall cooperate with Landlord in exhibiting the
Premises to prospective tenants. Access by Landlord hereunder shall
not, under the circumstances, unreasonably interfere with
Tenant’s use and enjoyment of the Premises. Tenant
waives any claim and covenants not to sue Landlord for damages for
any injury or inconvenience to or interference with Tenant’s
business, occupancy or quiet enjoyment arising out of any permitted
entry by Landlord. Tenant acknowledges that Landlord might
not retain a key to the Premises and therefore may, in any
emergency, enter the Premises in any manner which Landlord
determines to be necessary, without liability therefor to
Tenant. No entry pursuant to this Section shall be
deemed to constitute an eviction of Tenant or a forcible detainer
of the Premises.
9.
Utilities
: Tenant shall pay,
from the date of delivery of the Premises through the expiration of
the Term (and, without implying that a holdover is permitted,
through any holdover), all charges for gas, water, sewer, rubbish
removal, electricity, telephone and other utility services used in
the Premises. If any such charges are not paid when due,
Landlord may pay the same, and any amount so paid by Landlord shall
thereupon become due to Landlord from Tenant as additional
Rent. Upon delivery of the Premises, Tenant shall cause all
utility services that are separately metered to the Premises to be
billed directly to Tenant, and Tenant shall pay such charges
directly to the purveyor(s) of such services.
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10.
Taxes
: Tenant covenants
and agrees to reimburse Landlord the full amount of all taxes
assessed against the Premises, including all improvements
thereon.
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