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
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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 bodily injury.
Lessee assumes all risk of and liability for damages to persons or property
arising during the terms of the lease, in connection with the Premises, or use
thereof, and shall indemnify and hold harmless Lessor and the property of
Lessor, including the leased Premises, from any and all claims, liability, loss,
damage, or expenses resulting from any use or any other occupation and use of
the Premises by Lessee, including, but not limited to, any of such arising by
reason of the injury to or death of any person or persons or by reason of damage
to any property caused by the condition of the leased Premises, the condition of
any improvements or personal property in, on or about the leased Premises, or
the acts or omissions of the Lessee of any person in, on or about the areas with
the express or implied consent of the Lessee. Such obligation of the Lessee to
indemnify and hold harmless the Lessor and the property of the Lessor shall
include, but not be limited to, any claim, liability, loss, damage or expense
arising by reason of the injury to or death of any agent, officer or employee of
the Lessee, any independent contractor hired by the Lessee to perform work or
render services in, on, or about the Premises, or any agent, officer or employee
of any such independent contractor, and any other person from any cause
whatsoever, while in, on or about the Premises, streets, alleys, sidewalks or
public ways adjacent thereto during the term. Insurance to be provided by the
respective indemnitor as herein provided must contain a clause or endorsement
specifically
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affording covering against liability contractually assumed by the Lessee. The
indemnity herein contained is intended to be a complete indemnity against any
and all expenses, damages or loss of any kind to the Lessor, including without
limitation, attorney's fees, court costs and similar expenses incurred in
defending against any claim even if groundless.
7. MAINTENANCE AND REPAIR: Lessor will maintain and keep in good repair,
the roof and outside of said building, including parking areas and all
landscaped areas, along with the maintenance of the HVAC unit.
Lessee will maintain and keep in good repair, the inside of said building,
including inside lighting and plumbing, frames and moldings, glass doors, door
openers, fixtures, equipment and appurtenances thereof in good condition and
repair. All utilities shall be the responsibility of the Lessee. In addition to
maintaining the interior of the lease space, the lessee shall further insure
that the sidewalk in front of its lease space is kept in a clean, orderly, and
safe manner during the term of the lease and extensions thereof. Lessee shall
also insure that all waste and trash is disposed of in a healthy and clean
manner without disturbing the other tenants surrounding the premises.
8. UTILITIES AND SERVICES: Lessee shall be responsible for the following:
A. monthly utility costs
B. janitorial services
C. nest control
D. pick-up and disposal of trash and garbage around exterior of
building caused by Lessee or its customers
9. DEFAULT: Any violation of the terms herein will be considered a default
hereunder. Should the Lessee default hereunder, the Lessor, in addition to any
and all rights provided under the laws of the State of Arkansas or equity, shall
have the right to re-enter and take possession of the premises, remove all
persons and property therefrom, and sell such property as necessary to satisfy
any deficiency hi payments by lessee as required hereunder without notice.
Further, all future rents shall be accelerated, due and payable.
10. SIGNAGE: Any signage shall be approved by the Lessor. Maintenance of
said signage shall be the responsibility of the Lessee.
11. MISCELLANEOUS PROVISIONS:
a. INVALIDITY: If any term or provision of this Lease or the
application to any person or circumstance shall, to any extent,
be invalid or unenforceable, the remainder of this Lease, or the
application of such term or provision to persons whose
circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected.
b. SUCCESSORS, ETC: The terms, conditions and covenants of this
Lease shall be binding upon and shall insure to the benefit of
each of the parties, their heirs, personal representatives,
successors or assigns, and shall run with the land; and where
more than one party shall be
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lessors under this Lease, the word "Lessor" whenever used in this
Lease shall be deemed to include all Lessors jointly and
severally.
c. WRITING: No waivers, alterations or modifications of this Lease
or any agreements in connection with this Lease shall be valid
unless in writing duly executed by both Lessor and Lessee.
d. NOTICE: For purposes of contacting either party, the addresses
shall be used:
Lessor:
Allison, Adcock, Rankin, LLC
Attn: Jim Rankin, Jr.
P.O. Box 1735
Conway, Arkansas 72033
Phone: 501-336-0050
Fax: 501-329-4962
Email: jrankinjr@conwaycorp.net
Lessee:
First State Bank
Attn: Randy Sims
620 Chestnut St.
Conway, Arkansas
Phone: 501-328-4663
LESSOR AND LESSEE, by their execution below, indicate their consent to the
terms of this lease on this The __________ day of April, 2003.
LESSOR
ALLISON, ADCOCK, RANKIN, LLC
BY: /s/ Jim Rankin, Jr.
---------------------------------
Jim Rankin, Jr., Member
LESSEE
FIRST STATE BANK
BY: /s/ Randy Sims
---------------------------------
Randy Sims, President
EIN:
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