Exhibit 10.32
STATE OF NORTH CAROLINA
LEASE AGREEMENT
COUNTY OF HENDERSON
THIS LEASE AGREEMENT is made and
entered into this 5 day of August 200_, by and between McMANUS
DEVELOPMENT LLC, hereinafter referred to as LESSOR, and MOUNTAIN
1ST BANK AND TRUST, hereinafter referred to as LESSEE.
In consideration of the mutual
covenants herein, the parties agree as follows:
1. PREMISES. Lessor does hereby
lease to Lessee, and Lessee does accept as tenant those premises
located at 3270 Hendersonville Road, Fletcher, Henderson County,
North Carolina, said premises being particularly described on
Exhibit A attached hereto and incorporated herein.
2. TERM. The term of this lease
shall be for 10 years commencing upon the later of occupancy of the
facility or October, 2005, and extending to September 30, 2015.
Should the Premises be completed and occupied prior to the
commencement date, the Lessee shall pay the Lessor the sum of One
Hundred Six and 67/100 Dollars ($106.67) for each day prior to
October 1, 2005 that the building is occupied.
3. RENT. Lessee shall pay to Lessor
rent in the amount of Three Thousand Two Hundred and no/100 Dollars
($3,200.00) per month which rental amount shall be due and payable
on or before the 10th day of each monthly period during the term of
this Lease Agreement. Lessee shall pay to Lessor, as additional
rent, an amount equal to five percent (5%) of one (1) month’s
rent as a late penalty should Lessor not receive the monthly rental
payment on or before such 30th day.
4. RENEWAL OPTION. Provided and upon
the condition that Lessee shall not then be in default under the
terms of this Lease beyond any applicable grace or cure period,
Lessee shall have the right to renew this Lease for a total of
three (3) additional terms of five (5) years each. Lessee shall
give notice in writing to Lessor by certified mail at least thirty
(30) days prior to the end of the original term or the current five
year renewal term of its intention not to exercise its option to
renew this Lease. Otherwise, the Lease shall automatically renew
for the next term available. The terms of the lease shall remain in
effect during each successive five year renewal term except that
monthly rental amounts may be adjusted by the aggregate increase in
the Chained Consumer Price Index for all Urban Consumers Index
(C-CPI-U as published by the U.S. Bureau of Labor Statistics)
experienced since the beginning of the immediately preceding
renewal term, or in the case of the original term, since the date
of the occupancy of the subject property. After the passage of 5
years, in any event, however, increases in the monthly rental
amount for the initial renewal term shall not exceed 118% of the
monthly rental amount of the 5 year original term, and increases in
monthly rental amounts of the subsequent renewal terms shall not
exceed 115% of the immediately preceding renewal term. The parties
understand and agree that this paragraph grants Lessee three (3)
separate options to renew this Lease Agreement for successive three
(3) renewal terms provided the requisite notice is
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given. The parties understand and agree that
this paragraph does not grant Lessee one option to renew this Lease
Agreement for one twenty-five (25) year period.
5. ALTERATIONS. The Lessor shall
construct the subject Premises in accordance with plans and
specifications rendered by the Lessee, and the Lessee agrees to
participate with the Lessor during the construction period to
assure the subject premises will be acceptable for occupancy upon
completion of construction. With the prior written consent of
Lessor, the Lessee may make alterations, additions, or improvements
in and to the Premises during the term of the Lease Agreement. All
such alterations, additions, and improvements shall be performed
and constructed in a workmanlike manner and shall not weaken or
impair the structural strength or lessen the value of, the building
on the Premises. All alterations, additions, and improvements on or
in the premises at the commencement of the term, and which may be
erected or installed during the term, including any extensions
thereof, shall become part of the premises and become the sole
property of the Lessor, except that 11 moveable trade fixtures
installed by the Lessee shall be and remain the property of the
Lessee.
6. REPAIRS. Lessee shall, throughout
the initial term of the Lease and any renewals or extensions
thereof, at its own expense, maintain in good order and repair the
Premises, including the building and other improvements located
thereon, except in the last five (5) years of the last five year
renewal term, the Lessor and Lessee shall share equally in the cost
of any structural (including but not limite
