Document:

Lease Agreement

 Exhibit 10.8 
  
 LEASE AGREEMENT 
  

			
	LANDLORD:	 	NHM00, LLC, a North Carolina Limited Liability Company
	TENANT:	 	NORTH STATE BANCORP., a North Carolina Corporation

  
 INDEX

  

					
	 Article

	 	 Description

	  	Page

	 I
	 	BASIC LEASE SCHEDULE	  	2
	 II
	 	DEFINITIONS	  	12
	 III
	 	TERM	  	12
	 IV
	 	RENT AND OTHER CHARGES	  	13
	 V
	 	RECORDS AD REPORTS	  	14
	 VI
	 	USE AND OPERATION	  	14
	 VII
	 	COMMON AREAS	  	16
	 VIII
	 	MAINTENANCE AND REPAIR	  	17
	 IX
	 	OPERATING EXPENSE CHARGES	  	19
	 X
	 	INSURANCE	  	20
	 XI
	 	LANDLORD’S RELEASE FROM DAMAGE	  	21
	 XII
	 	SIGNS AND ADVERTISING	  	21
	 XIII
	 	CASUALTY AND CONDEMNATION	  	22
	 XIV
	 	DEFAULT AND REMEDIES	  	23
	 XV
	 	ASSIGNMENT AND SUBLETTING	  	25
	 XVI
	 	TRANSFER OF LANDLORD’S INTEREST	  	26
	 XVII
	 	SUBORDINATION	  	26
	 XVIII
	 	ADDITIONAL PROVISIONS	  	27
			
	 EXHIBIT A
	 	SITE PLAN	  	 
	 EXHIBIT B
	 	LEGAL DESCRIPTION	  	 
	 EXHIBIT C
	 	CONSTRUCTION, LANDLORD’S AND TENANT’S WORK	  	 
	 EXHIBIT D
	 	SIGN CRITERIA	  	 
	 EXHIBIT E
	 	RULES AND REGULATIONS	  	 
	 EXHIBIT F
	 	Intentionally Deleted	  	 
	 EXHIBIT G
	 	FIRST AMENDMENT	  	 
	 EXHIBIT H
	 	FORM OF MEMORANDUM OF LEASE	  	 

  

 1 

			
	STATE OF NORTH CAROLINA	  	 
		
	COUNTY OF WAKE	  	LEASE AGREEMENT

  
 THIS LEASE
AGREEMENT, made and entered into this              day of
                    , 20    , by and between NHM00, LLC, a North Carolina Limited Liability Company, by
and through Kane Realty Corporation, its Managing Agent, (hereinafter referred to as “LANDLORD”) and NORTH STATE BANCORP., a North Carolina Corporation (hereinafter referred to as “TENANT”); 
  
 W I T N E S S E T H: 
  
 LANDLORD hereby lets to TENANT and TENANT hereby rents from LANDLORD the
Premises, subject to the operation and effect of any and all instruments and matters of record or in fact, intending to be legally bound under this Lease and in consideration of $1.00 and other good and valuable consideration, LANDLORD and TENANT
hereby agree with each other as follows: 
  
 ARTICLE I

 BASIC LEASE SCHEDULE 
  
 The following terms and definitions shall be applicable to the various provisions of this Lease, which refers to them, and should the provisions of this
Article conflict with any other provision hereof, then such later provisions shall control. 
  

			
	 1.01. TENANT’S TRADE NAME:
	 	North State Bank
		
	 1.02. TENANT’S ADDRESS:
	 	6200 Falls of Neuse Road
	 	 	Raleigh, North Carolina 27609
		
	          LANDLORD’S ADDRESS:
	 	NMH00, LLC
	 	 	c/o Kane Realty Corporation
	 	 	Post Office Box 19107
	 	 	Raleigh, North Carolina 27619

  
 1.03. SHOPPING
CENTER: North Hills, located on that certain parcel of land more particularly described in Exhibit B. 
  
 1.04. PRINCIPAL TENANTS: Those occupying space in the Shopping Center in excess of 15,000 square feet. 
  
 1.05. PREMISES: A two-story, build-to-suit building of
approximately Twelve Thousand (12,000) square feet to be located on Six Forks Road as outlined on Exhibit A to this Lease. 
  

 2 

 1.06 LEASE TERM: Ten (10) Lease Years. This Lease shall be effective and enforceable in
accordance with the terms and provisions expressly set forth herein as of the date of execution of this Lease by LANDLORD and TENANT. The Lease Term shall commence upon the Occupancy Date by TENANT. The Lease shall expire (subject to early
termination as hereinafter provided) at midnight on the last day of the One Hundred Twentieth (120th) full calendar
month thereafter with same being adjusted for the TENANT’S Work Period. LANDLORD and TENANT agree to execute an Amendment to this Lease after TENANT’S bank opening identifying the specific Occupancy Date, Rent Commencement Date and
Expiration Date of this Lease. Such Amendment, when so executed and delivered, will be deemed to be incorporated in, and become a part of this Lease. 
  
 1.07 TENANT’S WORK PERIOD: Ninety (90) days after the Occupancy Date, subject to extension for delays described in Section 18.06.

  
 1.08 PLAN SUBMISSION DATE: June 1, 2003

  
 1.09 PERMITTED USES: The sole and exclusive use
of the Premises is for full-service banking operations and general office use relating to TENANT’S commercial, retail and investment banking and securities brokerage and related financial services. Notwithstanding the foregoing, TENANT shall
operate a full-service retail banking branch at all times during the Hours of Operation stated below in Section 1.16, and TENANT shall not have the option to convert the full area of the Premises to general office use without the prior written
consent of LANDLORD. No other use is permitted without the LANDLORD’S prior written consent. LANDLORD represents and warrants that the Premises are zoned in a manner which permit’s TENANT’S use of the Premises. 
  
 1.10 RENT: Payment of Rent shall begin on Rent Commencement
Date which shall be the earlier of (i) the date following the end of Tenant’s Work Period; or (ii) the date TENANT opens for business. 
  

				
	 Minimum Rent:
	  	 	 
		
	 Year 1
	  	$
 	312,000.00 per annum
26,000.00 per month
	 Year 2
	  	$
 	318,240.00 per annum
26,520.00 per month
	 Year 3
	  	$
 	324,604.80 per annum
27,050.40 per month
	 Year 4
	  	$
 	331,096.90 per annum
27,591.41 per month
	 Year 5
	  	$
 	337,718.84 per annum
28,143.24 per month
	 Year 6
	  	$
 	344,473.22 per annum
28,706.10 per month
	 Year 7
	  	$
 	351,362.68 per annum
29,280.22 per month
	 Year 8
	  	$
 	358,389.93 per annum
29,865.83 per month

  

 3 

				
	 Minimum Rent:
	  	 	 
		
	 Year 9
	  	$
 	365,557.73 per annum
30,463.14 per month
	 Year 10
	  	$
 	372,868.88 per annum
31,072.41 per month

  
 Percentage Rent
Rate: Not Applicable 
  
 1.11 OPERATING EXPENSE
CHARGES: 
  

				
	 Common Area Maintenance:
	  	 	 
		
	 Year 1
	  	$
 	39,000.00 per annum
3,250.00 per month
	 Year 2
	  	$
 	39,585.00 per annum
3,298.75 per month
	 Year 3
	  	$
 	40,178.78 per annum
3,348.23 per month
	 Year 4
	  	$
 	40,781.46 per annum
3,398.46 per month
	 Year 5
	  	$
 	41,393.18 per annum
3,449.43 per month
	 Year 6
	  	$
 	42,014.08 per annum
3,501.17 per month
	 Year 7
	  	$
 	42,644.29 per annum
3,553.69 per month
	 Year 8
	  	$
 	43,283.95 per annum
3,607.00 per month
	 Year 9
	  	$
 	43,933.21 per annum
3,661.10 per month
	 Year 10
	  	$
 	44,592.21 per annum
3,716.02 per month
		
	 Taxes:
	  	 	 
		
	 Year 1
	  	$
 	15,000.00 per annum
1,250.00 per month
	 Year 2
	  	$
 	15,225.00 per annum
1,268.75 per month
	 Year 3
	  	$
 	15,453.38 per annum
1,287.78 per month
	 Year 4
	  	$
 	15,685.18 per annum
1,307.10 per month

  

 4 

				
	 Taxes:
	  	 	 
		
	 Year 5
	  	$
 	15,920.46 per annum
1,326.70 per month
	 Year 6
	  	$
 	16,159.27 per annum
1,346.61 per month
	 Year 7
	  	$
 	16,401.66 per annum
1,366.80 per month
	 Year 8
	  	$
 	16,647.68 per annum
1,387.31 per month
	 Year 9
	  	$
 	16,897.40 per annum
1,408.12 per month
	 Year 10
	  	$
 	17,150.86 per annum
1,429.24 per month
		
	 Insurance:
	  	 	 
		
	 Year 1
	  	$
 	300.00 per annum
25.00 per month
	 Year 2
	  	$
 	304.50 per annum
25.38 per month
	 Year 3
	  	$
 	309.07 per annum
25.76 per month
	 Year 4
	  	$
 	313.71 per annum
26.14 per month
	 Year 5
	  	$
 	318.42 per annum
26.53 per month
	 Year 6
	  	$
 	323.20 per annum
26.93 per month
	 Year 7
	  	$
 	328.05 per annum
27.34 per month
	 Year 8
	  	$
 	332.97 per annum
27.75 per month
	 Year 9
	  	$
 	337.96 per annum
28.16 per month
	 Year 10
	  	$
 	343.03 per annum
28.59 per month

  
 1.12. MARKETING FUND: 
  

							
	 	  	Annual

	  	Monthly

	 	  	$	6,000.00	  	$	500.00
	 	  	 	With annual CPI Increases

  
 1.13. HVAC
MAINTENANCE/JANITORIAL: TENANT responsibility 
  

 5 

			
	 1.14. SECURITY DEPOSIT: Waived

	
	 1.15. ADVANCE RENT PAYMENT: Not Applicable

  
 1.16 HOURS OF
OPERATION: As the minimum hours set forth below, but TENANT shall not be required to operate on days or during hours prohibited by state or federal banking laws or regulations. 
  

			
	          Monday through Friday
	  	                        10:00 am - 5:00 pm

  

			
	 1.17 FINANCING DEADLINE DATE: August 31, 2003

	
	 1.18 FINANCING NOTICE DATE: September 30, 2003

  
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THIS PAGE INTENTIONALLY LEFT BLANK) 
  

 6 

 1.19 SPECIAL PROVISIONS: 
  

	 	1.	Option to Extend: TENANT shall have two (2) options to extend the initial Lease Term for a period of five (5) years, by giving LANDLORD written notice not less than
one hundred eighty (180) days prior to the expiration of the initial Lease Term, or, if applicable, the first option period. During the extended Lease Term, all provisions of this Lease shall remain in full force and effect with exception of Minimum
Rent and the Operating Expense Charges which shall be as follows: 

  

				
	 First Option Period:
	  	 	 
		
	 Year 11
	  	$	380,326.26 per annum
	 Minimum Rent
	  	 	31,693.86 per month
		
	 Operating Expense Charges
	  	$	45,261.09 per annum
	 Common Area Maintenance
	  	 	3,771.76 per month
		
	 Taxes
	  	$
 	17,408.12 per annum
1,450.68 per month
		
	 Insurance
	  	$
 	343.03 per annum
28.59 per month
		
	 Year 12
	  	$	387,932.78 per annum
	 Minimum Rent
	  	 	32,327.73 per month
		
	 Operating Expense Charges
	  	$	45,940.01 per annum
	 Common Area Maintenance
	  	 	3,828.33 per month
		
	 Taxes
	  	$
 	17,669.24 per annum
1,472.44 per month
		
	 Insurance
	  	$
 	348.18 per annum
29.01 per month
		
	 Year 13
	  	$	395,691.44 per annum
	 Minimum Rent
	  	 	32,974.29 per month
		
	 Operating Expense Charges
	  	$	46,629.11 per annum
	 Common Area Maintenance
	  	 	3,885.76 per month
		
	 Taxes
	  	$
 	17,934.28 per annum
1,494.52 per month
		
	 Insurance
	  	$
 	353.40 per annum
29.45 per month
		
	 Year 14
	  	$	403,605.27 per annum
	 Minimum Rent
	  	 	33,633.77 per month

  

 7 

				
	 Operating Expense Charges
	  	$	47,328.55 per annum
	 Common Area Maintenance
	  	 	3,944.05 per month
		
	 Taxes
	  	$
 	18,203.29 per annum
1,516.94 per month
		
	 Insurance
	  	$
 	358.70 per annum
29.89 per month
		
	 Year 15
	  	$	411,677.37 per annum
	 Minimum Rent
	  	 	34,306.45 per month
		
	 Operating Expense Charges
	  	$	48,038.48 per annum
	 Common Area Maintenance
	  	 	4,003.21 per month
		
	 Taxes
	  	$
 	18,476.34 per annum
1,539.69 per month
		
	 Insurance
	  	$
 	364.08 per annum
30.34 per month
		
	 Second Option Period:
	  	 	 
		
	 Year 16
	  	$	432,261.24 per annum
	 Minimum Rent
	  	 	36,021.77 per month
		
	 Operating Expense Charges
	  	$	48,759.06 per annum
	 Common Area Maintenance
	  	 	4,063.25 per month
		
	 Taxes
	  	$
 	18,753.49 per annum
1,562.79 per month
		
	 Insurance
	  	$
 	369.54 per annum
30.80 per month
		
	 Year 17
	  	$	440,906.46 per annum
	 Minimum Rent
	  	 	36,742.21 per month
		
	 Operating Expense Charges
	  	$	49,490.45 per annum
	 Common Area Maintenance
	  	 	4,124.20 per month
		
	 Taxes
	  	$
 	19,034.79 per annum
1,586.23 per month
		
	 Insurance
	  	$
 	375.08 per annum
31.26 per month
		
	 Year 18
	  	$	449,724.59 per annum
	 Minimum Rent
	  	 	37,477.05 per month
		
	 Operating Expense Charges
 Common Area Maintenance
	  	$
 	50,232.81 per annum
4,186.07 per month

  

 8 

				
	 Taxes
	  	$
 	19,320.31 per annum
1,610.03 per month
		
	 Insurance
	  	$
 	380.71 per annum
31.73 per month
		
	 Year 19
	  	$	458,719.08 per annum
	 Minimum Rent
	  	 	38,226.59 per month
		
	 Operating Expense Charges
	  	$	50,986.30 per annum
	 Common Area Maintenance
	  	 	4,248.86 per month
		
	 Taxes
	  	$
 	19,610.11 per annum
1,634.18 per month
		
	 Insurance
	  	$
 	386.42 per annum
32.20 per month
		
	 Year 20
	  	$	467,893.47 per annum
	 Minimum Rent
	  	 	38,991.12 per month
		
	 Operating Expense Charges
	  	$	51,751.09 per annum
	 Common Area Maintenance
	  	 	4,312.59 per month
		
	 Taxes
	  	$
 	19,904.26 per annum
1,658.69 per month
		
	 Insurance
	  	$
 	392.22 per annum
32.68 per month

  

	 	2.	LANDLORD Construction Contribution: In addition to the site work, etc., as referenced in Exhibit C, LANDLORD shall provide a LANDLORD Construction Contribution in the
amount of Eighty Dollars ($80.00) per square foot of the Premises toward the construction costs of the Premises. TENANT shall be responsible for any and all costs above the LANDLORD Construction Contribution. LANDLORD shall notify TENANT of the
expected cost per square foot to construct the Premises when available. 

  

	 	3.	TENANT Construction Contribution: TENANT shall be responsible for all incremental building costs greater than Eighty Dollars ($80.00) per square foot of the Premises
(the LANDLORD’S Construction Contribution). Such additional costs shall be paid by TENANT to LANDLORD in one of the following manners: (i) LANDLORD shall forward invoices for work on a weekly basis to TENANT for payment within fifteen (15)
days; or (ii) the TENANT Construction Contribution shall be capitalized into the Minimum Rent rate by increasing the Minimum Rent by Eleven Percent (11%) of the incremental cost per square foot. 

  

 9 

	 	4.	Construction of Premises: 

  
 A. LANDLORD agrees to construct the Premises, as described by the Plans (as hereinafter defined); provided however, that TENANT shall be responsible for
all costs in excess of the LANDLORD Construction Contribution stated above. The Premises shall be constructed according to working drawings and specifications to be prepared by TENANT’S architect (the “Plans”). The Premises shall be
deemed “Substantially Completed” upon (i) LANDLORD’S completion of the Premises in accordance with said Plans (except for minor punch list items remaining to be completed or corrected), (ii) delivery by LANDLORD’S architect of a
certificate to TENANT certifying completion of the Premises in accordance with the Plans, and (iii) receipt of a temporary or permanent certificate of occupancy (unless issuance thereof is withheld until the completion of TENANT’S Work) shall
make the Premises “Substantially Completed.” 
  
 B. The
date that the Premises is Substantially Completed shall be the Occupancy Date for purposes of determining the Rent Commencement Date. The estimated Occupancy Date is July 1, 2004. However, if LANDLORD should be delayed as a result of changes
requested by TENANT or any other reason caused by TENANT or its employees, agents, contractors or subcontractors, then the Occupancy Date shall be accelerated by the number of days of such delay. If LANDLORD’S estimate of the Occupancy Date
shall change by more than five (5) business days, LANDLORD will use reasonable efforts to give notice of the new estimated Occupancy Date to TENANT sixty (60) days prior to the earlier of (i) July 1, 2004 or (ii) the new estimated Occupancy Date in
order to allow TENANT to schedule the delivery of its fixtures to the Premises. 
  
 C. On the Plan Submission Date, TENANT shall submit for review to the LANDLORD two (2) sets of Plans. The Plans are to be produced by an architect registered in the State of North Carolina. LANDLORD will, within ten
(10) working days after receipt of said Plans, provide TENANT with its approval of the Plans, or provide TENANT with written comments detailing how TENANT may obtain LANDLORD’S approval, which shall not be unreasonably withheld, conditioned or
delayed, whereupon TENANT shall then incorporate any and all reasonably acceptable corrections into the Plans and provide LANDLORD with a corrected and revised set of complete and detailed Plans. LANDLORD and TENANT agree to act diligently and in
good faith to review and respond promptly to all submissions, comments, requested changes and resubmissions with respect to the Plans. Once the Plans are completed in accordance with the basic requirements of this Lease and Tenant’s Plans, the
LANDLORD shall sign and date those Plans indicating its approval of same. 
  
 D. Any and all changes to the construction of the Premises desired by TENANT subsequent to the date LANDLORD’S engineer signed the Plans shall be made only by written change orders signed by LANDLORD, its
contractor, and TENANT. Thereafter, TENANT shall pay to LANDLORD the cost of any change orders at the time payment of the construction requisition pertaining to the work done pursuant to such change order is due. 
  

 10 

 E. On the Occupancy Date, all equipment, material, and workmanship which is the responsibility of
LANDLORD shall comply with requirements of applicable laws, codes, regulations and ordinances, and have the approval of inspection authorities having jurisdiction. After the Occupancy Date, TENANT shall be responsible for compliance with all
applicable laws pertaining to the Premises, including without limitation, the American Disabilities Act of 1990 (or such other similar regulations or law enforceable by other federal, state, and local governments pertaining thereto). 
  
 F. TENANT may submit a schedule of punch list items to LANDLORD within
thirty (30) days after the Occupancy Date. LANDLORD shall use commercially reasonable efforts to complete or correct such punch list items within a reasonable time, and if such items are not completed on or before the Rent Commencement Date,
LANDLORD shall diligently pursue their completion until all punch list items are completed. 
  
 G. TENANT shall be responsible for all work not described in the Plans which is necessary to complete and place the Premises in finished condition for opening for business, as described in Exhibit C under
“TENANT’S WORK”. 
  
 H. LANDLORD shall grant
TENANT, its agents or contractors, the right to enter upon the Premises for the purposes of performing TENANT’S Work and setting up the operation of a full-service bank. TENANT may have access to the Premises and may perform TENANT’S Work
during LANDLORD’S construction of the Premises; provided, however, that TENANT cooperates in full with LANDLORD’S contractor and/or agents and in no way inhibits LANDLORD’S ability to construct the Premises in a timely and unimpeded
fashion. 
  

	 	5.	Reserved Parking: Five (5) reserved parking spaces located outside the main entrance of the Premises shall be designated for the exclusive use of TENANT’S customers between the
hours of 9:00 a.m. and 6:00 p.m., Monday through Friday, excluding bank holidays. 

  
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 11 

 ARTICLE II 
 DEFINITIONS 
  
 2.01. “PREMISES” shall mean the property let to TENANT as described in Article 1. The Premises shall be measured from the exterior faces of all exterior walls and from the centerline of all common walls. The LANDLORD
reserves to itself the use of the exterior walls and roof, and the right to install, maintain, use and repair pipes, ducts, conduits, vents and wires leading in, through, over, or under the Premise’s. 
  
 2.02. “LEASE YEAR” as used herein is defined to mean
a period of twelve (12) consecutive full calendar months. if the Lease Term shall commence on a day other than the first day of a calendar month, it shall be considered a partial month. At LANDLORD’S election, the “Lease Year” shall
mean any twelve (12) month period selected by LANDLORD. If by such election, the period prior to the first “Lease Year” is longer than a partial month, then this period shall be deemed a “Partial Lease Year” Minimum Rent and
Additional Rent shall be prorated for the partial month and/or Partial Lease Year. 
  
 2.03. “COMMON AREAS” means the entire Shopping Center except the portions of the Shopping Center upon which buildings, structures or other improvements have been erected for lease or sale, and
except areas designated for other uses by LANDLORD. 
  
 2.04.
Intentionally Deleted 
  
 2.05. “PRO RATA
SHARE” means the ratio of the floor area of the Premises to the Gross Leasable Area of the Shopping Center, excluding principal TENANT’S Premises. 
  
 2.06. “GROSS LEASABLE AREA” shall mean all areas rentable to tenants, as determined by LANDLORD and
measured in a manner consistent with Section 2.01 above, and shall exclude the Common Areas. 
  
 ARTICLE III 
 TERM 
  
 3.01. Term. This Lease shall be for the term specified in Article I hereof, which shall run from the Occupancy
Date as specified in Article I, except that the LANDLORD shall have the right to postpone the Occupancy Date by service of written notice upon the TENANT. 
  
 If the Occupancy Date fails to occur on or before July 1, 2005, either party may elect to terminate this Lease upon service of written notice to the other
given prior to the Occupancy Date, in which case neither party shall have any liability to the other under this Lease. 
  
 3.02. Failure of TENANT to Open. In the event that TENANT fails to open the Premises for business to the public for full-service banking
operations on or before the date that is the date following the end of Tenant’s Work Period, then the LANDLORD shall have in addition to any and all remedies herein provided the right at its option to collect not only the Minimum Rent but
Additional Rent at the rate of 1/360th per day of the Minimum Rent. 
  

 12 

 3.03. Construction/Possession. TENANT acknowledges that no promises to decorate, alter,
repair or improve the Premises, either before or after the execution hereof, have been made by the LANDLORD or its authorized representatives, except as the same may be specified in Exhibit C attached hereto and Section 1.19 above. TENANT shall
perform all TENANT’S work on the Premises in accordance with Exhibit C attached hereto, and shall thereafter install such-fixtures and equipment to perform such other work as shall be necessary or appropriate in order to prepare the Premises
for opening and continuous operation of TENANT’S business thereon. 
  
 3.04. Holding Over. If TENANT shall be in possession of the Premises after the expiration of the term of this Lease, LANDLORD shall have the right to have the tenancy become month to month, terminable by either party on seven
(7) days prior written notice, at a monthly rental which shall be at LANDLORD’S discretion, but not greater than an amount equal to 150% of the sum of the monthly installment of Minimum Rent payable during the last month of the term. Such
tenancy shall also be subject to all of the conditions, provisions and obligations of this Lease. This shall not constitute a waiver of the rights of the LANDLORD to dispossess the TENANT and recover possession of the Premises and to bring any
action for damages suffered by LANDLORD on account of TENANT’S holding over. 
  
 ARTICLE IV 
 RENT AND OTHER CHARGES 
  
 4.01. Minimum Rent. Throughout the term of this Lease, TENANT
shall pay Minimum Rent to LANDLORD as specified in Article I. Minimum Rent shall be due the first day of each month in advance and payable in equal monthly installments without notice or demand. The, first installment of rent shall be due on the
Rent Commencement Date. 
  
 4.02. Intentionally
Deleted. 
  
 4.03. Other Charges. In
addition to Minimum Rent, all of the payments, including, but not limited to, the Operating Expense Charge, Marketing Fund, and HVAC Maintenance, if any, to be made by TENANT to the LANDLORD shall be deemed to be “Additional Rent” and all
remedies applicable to the non-payment of Minimum Rent shall be applicable thereto. Minimum Rent and Additional Rent are hereinafter sometimes collectively referred to as “Rent.” 
  
 4.04. Intentionally Deleted. 
  
 4.05. Payment of Rent. TENANT shall pay all Rent when due and
payable, without any set off, deduction, objection or prior demand therefor whatsoever. If TENANT shall fail to pay any Rent within ten (10) days of the due date, TENANT shall be obligated to pay a late payment charge equal One Hundred Dollars
($100.00) to reimburse LANDLORD for its additional administrative costs. In addition, any Rent which is not paid when due shall bear interest at the Default Rate of eight percent (8%) from the first day due until paid. Any payment by TENANT or
acceptance by LANDLORD of a lesser amount than shall be due from TENANT to LANDLORD shall be treated as a payment on account. The acceptance by LANDLORD of a check for a lesser amount with an endorsement or statement thereon, or upon any letter

  

 13 

 accompanying such check, that such lesser amount is payment in full shall be given no effect, and LANDLORD may accept
such check without prejudice to any other rights or remedies which LANDLORD may have against TENANT. 
  
 4.06. Annual Adjustments in Other Charges. At the end of every Lease Year, the annual amount to be paid by TENANT for Marketing Fund and
HVAC Maintenance, if any, shall be increased by the increase in CPI (as hereafter defined) for that Lease Year. The adjustments shall take effect with the rent payment due each January 1, and shall be calculated based on the increase in the CPI
published the prior October, over the CPI published for October of the previous Lease Year. CPI shall mean the Consumer Price Index - U.S. City Average for Urban Wage Earners and Clerical Workers, All Items (1982 = 100) of the United States Bureau
of Labor Statistics. In no event shall the annual amount paid by TENANT for Marketing Fund and HVAC Maintenance, if any, be decreased. 
  
 ARTICLE V 
 RECORDS AND
REPORTS 
  
 5.01. TENANT’S Financial
Statements. Upon request, TENANT shall provide LANDLORD with its annual audited financial statements each Lease Year during the Term. 
  
 ARTICLE VI 
 USE AND
OPERATION 
  
 6.01. Permitted Use. TENANT
shall use the Premises for the uses designated as permitted uses in Article I and for no other purpose without LANDLORD’S written consent, which consent shall not be unreasonably withheld. Any variation or deviation from the specific use
expressly set forth herein without LANDLORD’S written consent shall be deemed a default of this Lease. The LANDLORD does not warrant or make any representation that the TENANT will have the exclusive right to sell any items or services in this
Shopping Center. 
  
 6.02. Continuous Operation.
TENANT covenants and agrees to remain open for business at least during the Hours of Operation, as specified in Article I. If TENANT fails to operate during these hours it shall constitute a default hereunder entitling LANDLORD to pursue any and all
remedies it may have, including terminating this Lease. If TENANT shall request LANDLORD’S approval of the opening of the Premises for business for periods exceeding those specified in Article I, and LANDLORD shall approve such request, TENANT
shall pay for any additional costs incurred by LANDLORD. 
  
 6.03.
Compliance with Laws. TENANT will not breach or suffer the breach of any laws, statutory regulations, covenants, conditions or restrictions affecting the Shopping Center or the Premises, and shall use and occupy the Premises in strict
compliance therewith and in compliance with LANDLORD’S rules and regulations. TENANT shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants
of the Shopping Center, or use or allow the Premises to be used for any improper, immoral, unlawful, objectionable purpose, nor shall TENANT cause, maintain, or 
  

 14 

 permit any nuisance in or about the Premises. TENANT shall, at its sole cost and expense, comply with all laws, rules,
regulations and requirements now in force, or which may hereafter be enacted, relating to or affecting the condition, use or occupancy of the Premises 
  
 6.04. Alterations. TENANT shall not make or suffer to be made any alterations, additions or improvements to or of the Premises or any part
thereof, without the prior written consent of LANDLORD. Any alterations, additions, or improvements, except inventory and trade fixtures, shall become part of the realty and shall belong to the LANDLORD. In the event the LANDLORD consents to the
making of any alterations or improvements to the Premises, the same shall be made by TENANT at TENANT’S sole cost and expense and any contractor or person selected by TENANT to make the same must first be approved by LANDLORD in writing. All
such alterations, additions and improvements and any removal, restoration, or repairs made to the Premises shall be completed in good workmanlike manner with materials and labor in kind and quality similar to that originally in the Premises and
shall be free and clear of all liens for labor, taxes or materials. Upon demand, TENANT shall provide LANDLORD with such waivers of lien and other documents as LANDLORD may reasonably require to ascertain the provisions of this Article have been
complied with. Notwithstanding the foregoing, TENANT may without LANDLORD’S consent make nonstructural alterations to the interior of the Premises costing no more than $10,000.00 in the aggregate during the Term, provided such alterations are
otherwise in compliance with this Section 6.04. 
  
 6.05.
Environmental Warranty. TENANT shall not cause or permit any hazardous materials (as defined below) to be brought upon, kept or used in or about the Premises or the shopping center in which the Premises are located without
LANDLORD’S prior written consent, which consent may, be withheld in LANDLORD’S sole discretion. LANDLORD hereby consents to TENANT’S bringing upon, keeping and using at the Premises (1) materials constituting inventory for resale,
provided that TENANT does not repackage such materials at the Premises in a manner that creates a potential for a spill, leak or other release, and (2) commonly used office products or supplies as may be necessary for the cleaning or maintenance of
the Premises or equipment, fixtures or furnishings located at the Premises. In consideration of the foregoing consent, and any other specific consent that LANDLORD may grant pursuant to this paragraph, TENANT shall be obligated to maintain full
compliance at all times, with respect to all hazardous materials to which such consents relate, with any and all applicable environmental control, anti-pollution, or health and safety statutes, laws and regulations, including, but not limited to,
the Resource, Conservation and Recovery Act, 42 U.S.C. § 6901, et seq. (“RCLA”); the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601, et seq. (“CERCLA”); the
Hazardous Materials Transportation act, 49 U.S.C. § 801, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1321, et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq. (“TSCA”); and the Occupational
Safety and Health Act, 29 U.S.C. § 651 et seq. In the event of the breach of the obligations contained in this paragraph by TENANT, or if the presence of hazardous materials on or about the shopping center caused or permitted by TENANT results
in contamination of the Premises, the shopping center or surrounding area, TENANT shall indemnify, defend and hold LANDLORD harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses arising in connection
with such breach or contamination, (including, without limitation) diminution in value of the Premises and/or shopping center and all improvements thereon, damages for the loss or restriction on the use of rentable or useable space or any

  

 15 

 amenities of the Premises and/or shopping center, and reasonable attorneys’ fees, consultant fees, and expert fees.
When TENANT vacates the Premises, TENANT shall provide LANDLORD a certificate stating that no hazardous materials have been incorporated into the Premises and that the Premises is free of same. As used herein the term “hazardous materials”
means any and all materials and substances which have been determined or are subsequently determined to be harmful to human health or the environment, including but not limited to (1) “hazardous wastes” as defined under RCRA or any other
federal, state or local law or regulation, (2) “hazardous substances” as defined under CERCLA or any other federal, state or local law or regulation, (3) gasoline, petroleum, or other hydrocarbon products, by-products, derivatives, or
fractions (including spent products), (4) “toxic substances” as defined under TSCA, (5) “regulated medical waste” as defined by 40 C.F.R. § 259.30, and (6) any radioactive materials or substances. 
  
 ARTICLE VII 
 COMMON AREAS 
  
 7.01. Use of Common Areas. Subject to regulations as established from time to time by LANDLORD, TENANT in common with other tenants of
LANDLORD and any designee of LANDLORD, shall have the nonexclusive right of use of the Common Areas of the Shopping Center. TENANT, its subtenants, successors and assigns shall not solicit business or display merchandise in any of the Common Areas
or distribute hand bills or any other advertising matter therein. LANDLORD shall have at all times exclusive right to control and manage the Common Areas and without limitation of LANDLORD’S rights, LANDLORD may alter, remodel, change or close
all or any portion of the Common Areas, including the parking areas to such an extent as may be necessary in the opinion of the LANDLORD and may grant, modify or terminate easements and other agreements pertaining to use and operation. LANDLORD
shall give TENANT reasonable advance notice of any such actions to be taken by LANDLORD which may have a material adverse effect on TENANT’S business. LANDLORD agrees use commercially reasonably efforts to conduct such activities in a manner
that limits interference with TENANT’S business in the Premises. LANDLORD may prohibit parking, passage of motor vehicles in areas previously designated for parking or passage and may erect additional buildings on Common Areas or change the
location of the buildings, structures and other areas. 
  
 7.02.
Intentionally Deleted. 
  
 7.03
Utilities. a) TENANT shall pay for all utilities, including without limitation domestic water, gas, electricity, sewage, chilled water for cooling and telephones supplied to or servicing the Premises. LANDLORD shall not be liable for
any interruption in the supply of any Utility to the Premises, nor shall any such interruption constitute a breach by LANDLORD of the terms and conditions of this Lease, or constitute a ground for an abatement of any sum payable by TENANT under this
Lease whether at the time of such interruption the Utilities are being supplied by LANDLORD or others. 
  
 b) Except as may otherwise be provided in Exhibit “C”, LANDLORD shall not be responsible for providing any meters or other devices for the
measurement of Utilities supplied to the Premises. TENANT shall make application for and arrange for the installation of all such meters or other devices, at TENANT’S sole cost and expense. 
  

 16 

 7.04 Waste Removal. LANDLORD shall have the option to provide TENANT with trash and waste
compaction, disposal collection, and storage services, collectively referred to as “Waste Removal Services,” directly or through a contractor, or to require TENANT to contract independently with a contractor for Waste Removal Services. If
LANDLORD elects to provide Waste Removal Services to TENANT, TENANT shall pay to LANDLORD or LANDLORD’S representative or contractor for the cost of such service including administrative costs of fifteen percent (15%) of the cost of Waste
Removal Services. At LANDLORD’S option, the cost will either be 1) directly billed by LANDLORD or 2) through Common Area Maintenance reimbursements (see Article 9). 
  
 ARTICLE VIII 
 MAINTENANCE AND REPAIR 
  
 8.01. TENANT Installation. TENANT shall, at TENANT’S sole expense, install all trade fixtures and equipment required to operate its business (all of which shall be of first-class quality workmanship). All trade fixtures,
signs, or other personal property installed in the Premises by TENANT shall remain the property of TENANT and may be removed at any time provided that TENANT is not in default hereunder and provided the removal thereof does not cause TENANT’S
default hereunder; and further provided that TENANT shall, at TENANT’S sole expense, promptly repair any damage to the Premises resulting from the removal of personal property. The term “trade fixtures” as used herein shall not
include carpeting, hood vent or any item which protrudes through the roof of the Premises, floor coverings, attached shelving, lighting fixtures other than freestanding lamps, wall coverings, or similar TENANT improvements which shall become the
property of LANDLORD upon surrender of the Premises by TENANT for whatever reason. 
  
 8.02. Maintenance by TENANT. Except as provided in Section 8.05 hereof, TENANT shall, at TENANT’S expense, at all times keep the Premises (interior and exterior) and appurtenances thereto in good
order, condition, and repair, clean, sanitary, and safe, including the replacement of equipment, fixtures, and all broken glass (with glass of the same size and quality) and shall, in a manner satisfactory to LANDLORD, decorate and paint the
Premises when necessary to maintain at all times a clean and slightly first class appearance. In the event TENANT fails to perform any of its obligations as required hereunder upon not less than ten (10) days prior written notice, LANDLORD may, but
shall not be required to, perform and satisfy same with TENANT hereby agreeing to reimburse LANDLORD, as Additional Rent, for the cost thereof promptly upon demand. TENANT shall make any and all additions, improvements, alterations, and repairs to
or on the Premises other than those required for the structural repair of the roof, foundation, or exterior walls, which may at any time be required or recommended by any lawful authorities, insurance underwriters, Inspection Rating Bureaus, or
insurance inspectors designated by LANDLORD. LANDLORD may, but shall not be obligated to, deal directly with any authorities respecting their requirements for additions, improvements, alterations, or repairs. All such work shall be performed in a
good and workmanlike manner. All TENANT work (as set forth in Exhibit C) and all additions, improvements, and alterations shall become the property of the LANDLORD upon the expiration or earlier termination of this Lease. 
  

 17 

 8.03. TENANT Shall Discharge All Liens. TENANT will not create or permit to be created or
to remain, and will discharge, any lien (including, but not limited to, the liens of mechanics, laborers or materialmen for work or materials alleged to be done or furnished in connection with the Premises), encumbrance or other charge upon the
Premises or any part thereof, upon TENANT’S leasehold interest therein, provided, that TENANT shall not be required to discharge any such liens, encumbrances or charges as may be placed upon the Premises by the act of LANDLORD. LANDLORD shall
have the right, but not the obligation, to discharge any lien on behalf of TENANT, and to charge the amounts paid by LANDLORD, including costs, premiums, and attorney fees, to TENANT as additional rent. 
  
 LANDLORD reserves the right to enter the Premises to post and keep posted
notices of non-responsibility for any such lien. TENANT will pay, protect and indemnify LANDLORD within thirty (30) days after demand therefore, from and against all liabilities, losses, claims, damages, costs and expenses, including reasonable
attorney’s fees, incurred by LANDLORD by reason of the filing of any lien and/or the removal of the same. 
  
 8.04. Surrender of Premises. At the termination of this Lease, TENANT shall surrender the Premises in good and broom clean condition
(subject to the removals hereinafter required), reasonable wear and tear excepted, and shall surrender all keys for the Premises to LANDLORD at the place then fixed for the payment of Rent, and shall inform LANDLORD of all combinations on locks,
safes and vaults, if any, in the Premises. TENANT during the last thirty (30) days of such term shall remove all its trade fixtures, and, to the extent required by LANDLORD by written notice, any other installation, alterations or improvements which
are not approved by or exempt from approval by LANDLORD under Section 6.04 before surrendering the Premises as aforesaid and shall repair any damage to the Premises caused thereby. TENANT’S obligation to observe or perform this covenant shall
survive the expiration or other termination of the Lease. 
  
 8.05. Maintenance by LANDLORD. LANDLORD shall keep the structural integrity of the supporting walls, the foundations, and roof of the Premises in reasonable repair and shall make replacements if repair is not reasonably
effective, provided that TENANT shall promptly give LANDLORD written notice of the necessity for such repairs, and provided that the damage thereto shall not have been caused by negligence of TENANT, its concessionaires, officers, agents, employees,
licensees, or invitees; in which event TENANT shall be responsible therefor. LANDLORD shall have no obligation to repair, maintain, alter, or perform any other acts with reference to the Premises or any part thereof, or any plumbing, heating,
ventilating, electrical, air conditioning, or other mechanical installations therein. If Article 1.13 imposes HVAC charges, the LANDLORD will be responsible for the maintenance of HVAC to the Premises. If the LANDLORD does not provide HVAC
maintenance, the TENANT shall maintain the heating and air conditioning equipment throughout the term of this Lease, including but not limited to, the replacement of filters, belts, refrigerant, compressor, any and all parts, and the entire unit if
and when required. TENANT shall maintain a service contract for the entire term of this Lease with LANDLORD’S approval of the maintenance contractor and terms of the service contract agreement. TENANT will provide LANDLORD a copy of said
service contract upon notice. 
  

 18 

 ARTICLE IX 
 OPERATING EXPENSE CHARGES 
  
 9.01. Charges. In addition to and separate from the Minimum Rent and any other charges, the TENANT shall pay to the LANDLORD as Additional Rent on the first day of the month in advance the Operating Expense Charges, consisting
in the aggregate of the amounts payable for Common Area Maintenance Costs, Taxes and Insurance as shown in Article I. The Operating Expense Charges are fixed at the amounts shown in Article 1, and will not be adjusted for LANDLORD’S actual
operating costs, Taxes or insurance costs. 
  
 9.02. Common
Area Maintenance. The LANDLORD will operate and maintain or will cause to be operated and maintained, the Shopping Center. 
  
 9.03. Taxes. The word Taxes, as used herein, shall mean all taxes, assessments, impositions, levies, charges, excises, fees, licenses, and
other sums levied, assessed, charged, or imposed by any governmental authority or other taxing authority, or which accrue on the Shopping Center for each of the LANDLORD’S fiscal years (or portion thereof) during the term of this Lease,
including, without limitation, all costs and expenses incurred by the LANDLORD in contesting or seeking to reduce the amount of the leasehold improvements, taxes, all penalties, interest and other charges. TENANT shall pay before delinquent, any and
all taxes, levied or assessed, and which become payable on TENANT’S inventory, equipment, trade fixtures, leasehold improvements and other personal property located in the Premises. 
  
 9.04 LANDLORD’S Insurance. The LANDLORD shall obtain and maintain throughout the Lease Term policy or
policies of fire and extended coverage insurance covering the Shopping Center in amounts, on such terms and with such issuer or issuers as LANDLORD, in its sole discretion, may deem prudent. LANDLORD may obtain any such coverage through umbrella
policies. Such insurance shall be under the sole control, and shall be for the sole benefit, of LANDLORD and any claim arising thereunder may be prosecuted, settled or compromised by LANDLORD. 
  
 9.05. Intentionally deleted. 
  

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 ARTICLE X 
 INSURANCE 
  
 10.01.
Coverage. TENANT agrees to carry, at its own expense, personal property insurance including stock, trade fixtures, improvements, betterments and fixtures against All Direct Risk Physical Loss, in an amount of not less than one hundred
percent (100%) of its insurable Replacement Cost value. TENANT agrees to have his policy of insurance name the LANDLORD as Loss Payee and make benefits payable to the TENANT and LANDLORD, as their interest may appear. TENANT agrees to carry, at its
sole cost and expense, throughout the term of the Lease, Public Liability Insurance including contractual liability and Auto Liability Insurance for its own protection, covering the Premises and the TENANT’S use thereof with minimum amounts of
insurance of $1,000,000.00 for injury and/or death to any one person and $2,000,000.00 for injury or death to any number of persons in any one accident and property damage insurance in an amount of $1,000,000.00 for damage to property of others in
any one occurrence, and if TENANT sells alcoholic beverages, Dram Shop Liability coverage of $2,000,000. TENANT agrees to give LANDLORD prompt notice of any accidents or occurrences subject to coverage by its insurance, or the LANDLORD’S
insurance. TENANT agrees to be responsible for property damage or liability arising out of its operation, whether covered by its insurance or not. TENANT agrees to carry such other forms, amounts and types of insurance, as from time to time may be
required by LANDLORD, and all insurance shall be with companies approved by LANDLORD. TENANT further agrees to provide evidence of all insurance required under this paragraph, in such form or forms as may be required by the LANDLORD. TENANT agrees
to have its insurance policies endorsed to provide thirty (30) days advance notice of cancellation or material change be provided to the LANDLORD prior to termination of its coverage. 
  
 10.02. Indemnification. To the extent permitted by law, TENANT shall defend, with counsel satisfactory to
LANDLORD and completely indemnify and hold forever harmless LANDLORD from and against any and all liabilities, fines, suits, claims, demands, actions, causes of actions, losses, costs (including reasonable attorney fees), damages, judgments, expense
of any kind or character whatsoever, due to or arising out of: (a) any material breach or violation or nonperformance of any covenant, obligation, condition or agreement set forth in this Lease on the part of TENANT to be fulfilled, kept or
performed; and/or (b) any damage to, loss, or destruction of any property arising directly or indirectly out of TENANT’S negligent use or occupancy of the Premises; and/or (c) any injury to any person, including death, occurring in or about the
Premises resulting from TENANT’S negligence. 
  
 In the event
that LANDLORD is made a party to any action or proceeding which TENANT is required to defend pursuant to the provisions of this Lease, LANDLORD shall have the right to appear and take part in the action or proceeding by legal counsel of
LANDLORD’S choice, at LANDLORD’S expense. 
  
 10.03.
Increase in Premium. TENANT agrees not to do anything which will void the LANDLORD’S insurance or cause the premiums to increase. In the event that the LANDLORD’S insurance premiums are increased, as a result of the
TENANT’S occupancy, then the TENANT agrees to pay, in full, that increase in premium caused by its occupancy. To the extent LANDLORD receives advance notice of the increase in its insurance premiums, 
  

 20 

 LANDLORD will give written notice thereof to TENANT as soon as reasonably practical in order to allow TENANT to cease the
activities or conduct causing the premium increase before the increase becomes effective. 
  
 10.04. Waiver of Right of Recovery. Neither LANDLORD nor TENANT shall be liable to the other party or to any insurance company (by way of subrogation or otherwise) insuring the other party for any loss
or damage to any building, structure or other tangible property or liability for personal injury, or losses under workmen’s compensation laws and benefits, even though such loss or damage might have been occasioned by the negligence of such
party, its agents or employees. 
  
 ARTICLE XI

 LANDLORD’S RELEASE FROM DAMAGE 
  
 11.01. Utilities and Casualty. TENANT covenants and agrees not to hold LANDLORD responsible or liable for any
damages sustained by TENANT or any other person, due to the interruption or lack of Utilities or utility services to the Premises or the Shopping Center or any part thereof or any appurtenances thereof becoming out of repair, or due to the happening
of any accident or damage, especially, but not exclusively, for any damage caused by water, snow, windstorm, tornado, gas, steam, electric wiring, sprinkler system, plumbing, or heating apparatus, or any casualties occurring at the shopping center.
TENANT agrees not to hold LANDLORD liable for any acts or omissions of cotenants or other occupants of the Shopping Center, or for losses by theft. TENANT agrees not to overload the floor slab, electric wiring, or Utilities serving the Premises and
to install at its own expense, but only after obtaining LANDLORD’S written approval, any electric wiring which may be required in connection with TENANT’S apparatus. TENANT shall procure for its own account, and shall pay the cost of all
Utilities used at the Premises. 
  
 11.02.
Exculpation. TENANT agrees to look solely to LANDLORD to enforce LANDLORD’S obligations hereunder and not to the partners or shareholders and shall not seek any damages against the partners or shareholders of the LANDLORD. The
maximum possible liability of the LANDLORD to TENANT for LANDLORD’S obligations under this Lease shall not exceed and shall be limited to the value of LANDLORD’S interest in the Premises and TENANT shall not look to any other property or
assets of LANDLORD or any of the partners or shareholders of LANDLORD in seeking to either enforce LANDLORD’S obligations under this Lease or to satisfy judgment for LANDLORD’S failure to perform such obligation. 
  
 ARTICLE XII 
 SIGNS AND ADVERTISING 
  
 12.01 Signs. As provided for in Exhibit D, TENANT shall, at its own cost and expense, provide a suitable identification sign. Other than
such permitted signs, TENANT shall not place, install, or maintain any sign, banner, flag, aerial, antenna, or other display outside the Premises unless consented to in writing by LANDLORD; nor shall TENANT place or maintain on the glass of any
window or door of the Premises, or within one (1) foot of any such glass, any sign, 
  

 21 

 decoration, lettering, advertising matter, shade, blind, or other thing other than a standard sized sign indicating that
TENANT is an FDIC-insured institution. All signs used by TENANT shall be professionally printed, no handwritten signs are allowed. 
  
 12.02. Marketing Fund. LANDLORD has established a Marketing Fund for the Shopping Center to conduct sales promotions, center-wide
advertising and related activities intended to promote the Shopping Center. TENANT agrees to pay that amount in Article I to the Marketing Fund and this charge will be increased annually as provided in this Lease. All monies received by LANDLORD
under Section 1.12 shall be used solely for the purpose of advertising, promotions, and related expenses. The LANDLORD hereby agrees to pay twenty five percent (25%) of that amount paid by TENANT to the Marketing Fund in any Lease Year and LANDLORD
agrees to provide management personnel to direct all advertising and promotions, sufficient secretarial services, utilities, supplies, telephone and all equipment necessary for the efficient operation of the Marketing Fund, however, said costs are
considered administrative expenses and therefore will be deducted from LANDLORD’S contribution. All personnel and all advertising and promotion expenditures and decisions shall be under the exclusive control of the LANDLORD. 
  
 ARTICLE XIII 
 CASUALTY AND CONDEMNATION 
  
 13.01. Fire, Explosion or Other Casualty. In the event the Premises are damaged by fire, explosion or any other casualty to an extent which
is less than fifty percent (50%) of the cost of replacement of the Premises, the damage, except as provided in Section 13.02, shall promptly be repaired by LANDLORD at LANDLORD’S expense, provided that LANDLORD shall not be obligated to expend
for such repair an amount in excess of the insurance proceeds recovered or recoverable as a result of such damage, and that in no event shall LANDLORD be required to repair or release TENANT’S stock in inventory, trade fixtures, furniture,
furnishings, floor coverings and equipment. In the event of any such damage and (a) LANDLORD is not required to repair as hereinabove provided, or (b) the Premises shall be damaged to the extent of fifty percent (50%) or more of the cost of
replacement, or (c) the building of which the Premises are a part is damaged to the extent of twenty-five percent (25%) or more of the cost of replacement, or (d) the buildings (taken in the aggregate) in the Shopping Center shall be damaged to the
extent of more than twenty-five percent (25%) or more of the cost of replacement, LANDLORD may elect either to repair or rebuild the Premises or the building or buildings, or to terminate this Lease upon giving notice of such election in writing to
TENANT within ninety (90) days after the occurrence of the event causing the damage. If the casualty, repairing, or rebuilding shall render the Premises untenantable, in whole or in part, and the damage shall not have been due to the default or
neglect of TENANT, a proportionate abatement of the Minimum Rent shall be allowed from the date when the damage occurred until the date LANDLORD completes its work, said proportion to be computed on the basis of the relation which the gross square
foot area of the space rendered untenantable bears to the floor area of the Premises. Nothing in this Section shall be construed to permit the abatement in whole or in part of the Percentage Rent. 
  
 13.02. LANDLORD’S and TENANT’S Work. The provisions
of this Article XIII with respect to repair by LANDLORD shall be limited to such repair as is necessary to place the 
  

 22 

 Premises in the same condition as when possession was delivered by LANDLORD. Upon LANDLORD’S substantial completion,
TENANT shall, at TENANT’S expense, perform any work required to place the Premises in the condition, pursuant to Exhibit C, and TENANT shall restore, repair or replace its stock in inventory, trade fixtures, furniture, furnishings, floor
coverings and equipment, and if TENANT has closed, TENANT shall promptly reopen for business. In the event that there are changes in TENANT’S Work from Exhibit C, LANDLORD shall approve in writing any changes. 
  
 13.03. Condemnation. If the whole of the Premises, or so much
thereof as to render the balance unusable by TENANT, shall be taken under power of eminent domain, or otherwise transferred in lieu thereof, or if any part of the Shopping Center is taken and its continued operation is not, in LANDLORD’S sole
opinion, economical, this Lease shall automatically terminate as of the date possession is taken by the condemning authority. No award for any total or partial taking shall be apportioned, and TENANT hereby unconditionally assigns to LANDLORD any
award which may be made in such taking or condemnation. In the event of a partial taking which does not result in the termination of this Lease, Minimum Rent shall be apportioned according to the part of the Premises remaining usable by TENANT.

  
 13.04. Condemnation Award. All compensation
awarded or paid for any taking or acquiring under the power or threat of eminent domain, whether for the whole or a part of the Premises or Shopping Center, shall be the property of LANDLORD, whether such damages shall be awarded as compensation for
diminution in the value of the leasehold or to the fee of the Premises or otherwise, and TENANT hereby assigns to LANDLORD all of the TENANT’S right, title and interest in and to any and all such compensation; provided, however, that LANDLORD
shall not be entitled to any award specifically made to TENANT for the taking of TENANT’S trade fixtures, furniture or leasehold improvements to the extent of the cost to TENANT of said improvements (exclusive of LANDLORD’S contribution);
less depreciation computed from the date of said improvements to the expiration of the original term of this Lease. 
  
 ARTICLE XIV 
 DEFAULT AND REMEDIES 
  
 14.01. Default. In the event that TENANT (a) fails to pay all
or any portion of Rent when due; (b) fails to cease all conduct prohibited hereby immediately upon receipt of written notice from LANDLORD; (c) fails to take any action in accordance with the provisions of written notice from LANDLORD to remedy
TENANT’S failure to perform any of the terms, covenants, or conditions hereof; (d) fails to conduct business in the Premises as herein required; (e) shall become bankrupt or insolvent, or file any debtor proceedings, takes or have taken against
TENANT, any petition of bankruptcy, take action or has actions taken against TENANT for the appointment of receiver for all or a portion of assets, files a petition for corporate reorganization and makes an assignment for the benefit of creditors,
or for any other matter TENANT’S interest hereunder shall pass to another by operation of law; or (f) is otherwise in breach of any of TENANT’S obligations hereunder and shall not have cured the same within thirty (30) days following
written notice from LANDLORD; then TENANT shall be in default hereunder; or (g) if defaults under any other document or agreement entered into in connection with this Lease or TENANT’S occupancy of the Premises; provided, however, that as to
item (a) 
  

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 of this Section 14.01, LANDLORD shall provide TENANT with written notice of such failure not more than two (2) times
during each Lease Year, and in such instance TENANT shall be in default only if TENANT does not cure such failure within ten (10) days after the date of such written notice. 
  
 14.02. Remedies. In the event that TENANT is in default hereunder, LANDLORD shall be entitled to pursue any
remedy it may have at law or at equity, including, but not limited to, those expressly set forth hereafter. All remedies of LANDLORD shall be cumulative and in addition to any other rights LANDLORD may be entitled. The exercise of any one or more
rights, remedies shall not impair LANDLORD’S right to exercise any other right or remedy. No delay or omission of LANDLORD to exercise any right or power arising from any default shall be deemed a waiver of any right or remedy LANDLORD may have
upon the occurrence. 
  
 14.03. Particular Remedies.
Upon the occurrence and continuance of any default, LANDLORD, without notice to TENANT (except where expressly provided for below), may do any one or more of the following: (a) with or without judicial process, enter the Premises, take possession of
any and all goods, inventory, equipment and all other personal property of the TENANT without liability for trespass or conversion and may sell all or any part thereof at public or private sale. TENANT agrees that five (5) days prior written notice
of any public or private sale shall constitute reasonable notice. The proceeds of such sale shall be applied first to the payment of all costs and expenses in conducting the sale coming from said property, including all attorney fees; second, to the
payment of any indebtedness due LANDLORD; third, to pay the TENANT, on demand in writing, any surplus remaining after all indebtedness of TENANT has been paid to the LANDLORD; (b) perform on behalf of or at the expense of TENANT any obligation of
TENANT under this Lease which TENANT has failed to perform which LANDLORD shall have given TENANT notice. The cost of which performance by LANDLORD, together with interest thereon at the Default Rate from the date of such expenditures shall be
deemed Additional Rent payable to LANDLORD upon demand; (c) terminate this Lease by giving notice of such election to the TENANT and reenter the Premises without the necessity of legal proceedings and remove the TENANT and all other persons and
property therefrom; (d) with or without terminating this Lease, and without the necessity of legal proceedings, LANDLORD may retake control of the Premises, whether by changing the locks of the Premises or otherwise, and control TENANT’S access
to the Premises; and/or (e) exercise any other legal or equitable right or remedy it may have. Any and all costs or expenses incurred by LANDLORD including, without limitation, attorney’s fees, and enforcing any of its rights or remedies under
this Lease shall be deemed to be additional rent and shall be repaid to LANDLORD by TENANT upon demand. 
  
 14.04. Damages. If the Lease is terminated by LANDLORD pursuant to this Article; TENANT shall nevertheless be liable for any rent and
damages which may be due or sustained by LANDLORD and all reasonable costs, fees and expenses, including, but not limited to, reasonable attorney fees, costs and expenses incurred by LANDLORD in pursuit of its remedies hereunder, and in renting the
Premises to others (including, but not limited to, the costs of redoing and replacing TENANT upfitting work), from time to time, which at the election of LANDLORD shall be either: 
  
 (a) an amount equal to the Rent which, but for the termination of this Lease, would have been due during the remainder of
the term of this Lease, less the amounts of Rent, if any, which LANDLORD shall receive during such period from others to whom the Premises may be rented, in which case such damages shall be computed and payable, at LANDLORD’S option, either in
an accelerated lump sum payment or in an amount equal to the Rent due for the remaining term of this Lease, or payable in monthly installments in advance from the first day of each calendar month following termination of this Lease and continuing
until the date on which the term would have expired, but for such termination; or 
  

 24 

 (b) an amount equal to the present worth (as of the day of such termination) of Rent which, but for the
termination of this Lease, would have become due during the remainder of the term of the Lease, less the fair market rental value of the Premises (as determined by an independent real estate appraiser named by LANDLORD), in which case such damages
shall be payable to LANDLORD in one lump sum on demand and shall bear interest at the Default Rate until paid. 
  
 ARTICLE XV 
 ASSIGNMENT AND SUBLETTING 
  
 15.01. Assignment and Subletting. TENANT acknowledges that
TENANT’S agreement to operate in the Premises for the Permitted Use set forth in Article I hereof for the fully stated term hereof was a primary inducement and precondition to LANDLORD’S agreement to lease the Premises to TENANT.
Accordingly, TENANT’S interest in the Premises shall be limited to the use and occupancy thereof in accordance with the provisions hereof and shall be non-transferable. Any attempts by TENANT to sublet the Premises in whole or in part or to
sell, assign, lien, encumber or in any manner transfer this Lease or any interest therein shall constitute a default hereunder, as shall any attempt by TENANT to assign or delegate the management or to permit the use or occupancy of the Premises or
any part hereof by anyone other than TENANT. LANDLORD and TENANT acknowledge and agree that the foregoing provisions have been freely negotiated by the parties hereto and that LANDLORD would not have entered into this Lease without TENANT’S
consent to the terms of this Section 15.01. Any attempt by TENANT to sublet all or any portion of the Premises, to encumber same, or to in any manner transfer, convey, assign TENANT’S interest therein, allow the use or management thereof, shall
be void. 
  
 15.02. Change of Control.
Notwithstanding anything to the contrary contained in Section 15.01 above, the prohibition against assignment without LANDLOR’D’S consent shall not apply to assignments to (i) a corporation into or with which TENANT is merged or
consolidated or to which substantially all of TENANT’S assets or stock are transferred, provided such merger or transfer of assets or stock is for a good business purpose and not principally for the purpose of transferring the leasehold estate
created by this Lease, and provided further that the assignee shall have a net worth of not less than TENANT’S net worth on the date immediately preceding the transaction, or (ii) an entity that controls TENANT or is controlled by TENANT or is
under common control with TENANT and TENANT remains primarily liable after such assignment (either of (i) or (ii) being referred to herein as a “Related Assignee”). TENANT shall notify LANDLORD before any such transaction is consummated
and furnish to 
  

 25 

 LANDLORD documentation that such assignee qualifies as a Related Transferee hereunder. The term “control” as
used in this paragraph shall mean (1) in the case of a corporation, ownership of more than 50% of the outstanding capital stock of that corporation and control over the management of such corporation, (2) in the case of a general partnership,
ownership of more than 50% of the general partnership interests of the partnership and control over the management of such partnership, (3) in the case of a limited partnership, ownership of more than 50% of the general partnership interests of such
limited partnership, and control over the management of such limited partnership, and (4) in the case of a limited liability company, ownership of more than 50% of the membership interests of such limited liability company and control over the
management of such limited liability company. TENANT agrees to pay LANDLORD a transfer fee in the amount of $1,000.00 to reimburse LANDLORD for its administrative costs associated with any approved transfer. 
  
 ARTICLE XVI 
 TRANSFER OF LANDLORD’S INTEREST 
  
 16.01. Transfer. In the event of the sale, assignment or transfer by LANDLORD of its interest in the Shopping Center or in this Lease (other
than a collateral assignment to secure a debt of LANDLORD) to a successor-in-interest, LANDLORD shall thereupon be released or discharged from all of its covenants and obligations hereunder, except such obligations as shall have accrued prior to any
such sale, assignment or transfer; and TENANT agrees to look solely to such successor in interest of LANDLORD for performance of such obligations. TENANT shall release LANDLORD of any obligations relating to any securities given to LANDLORD by
TENANT, upon acknowledgment by such successors, or receipt of such securities. LANDLORD shall thereby be discharged of any further obligations relating thereto. LANDLORD’S assignment of the Lease, or of any or all of its rights herein, shall in
no matter affect TENANT’S obligations hereunder. TENANT shall thereafter attorn and look to such assignee, as LANDLORD, provided TENANT has first received written notice of such assignment of LANDLORD’S interest. 
  
 ARTICLE XVII 
 SUBORDINATION 
  
 17.01. Estoppel Certificate. Within ten (10) days after written request therefor by LANDLORD or any other mortgagee or trustee under a
mortgage or deed of trust covering the Premises, or if, upon any sale, assignment, or other transfer of the Premises by LANDLORD, an estoppel certificate shall be required from TENANT, TENANT shall deliver, in form satisfactory to LANDLORD, a
statement to any proposed mortgagee or other transferee, or to LANDLORD, certifying any facts that are then true with respect to this Lease, including without limitation (if such be the case), that this Lease is in full force and effect, that TENANT
is in possession, that TENANT has commenced the payment of rent and the dates for which rent has been paid, and that there are no defenses or offsets to the Lease claimed by TENANT. In the event that TENANT fails to provide such certificate within
ten (10) days after request therefor by LANDLORD, TENANT shall be deemed to have approved the contents of any such certificate submitted to TENANT by LANDLORD and LANDLORD is hereby authorized to so certify. 
  

 26 

 17.02. Subordination. TENANT agrees that this Lease shall, at all times, be subject and
subordinate to the lien of any mortgagee (which terms shall include all security instruments) that may be placed upon the Premises by LANDLORD,’and TENANT agrees, upon demand, without cost, to execute any instrument that may be required to
effectuate such subordination. So long as no default exists, nor any event has occurred which has continued to exist for such period of time, if any, and after such notice, if any, required by this Lease as would entitle LANDLORD to terminate the
Lease or to interfere with TENANT’S use, possession or enjoyment thereunder, or would cause, without any further action of LANDLORD, the termination of this Lease or the interference with TENANT’S use, possession or enjoyment hereunder,
this Lease shall not be terminated nor shall TENANT’S use, possession or enjoyment of the Premises be interfered with, in any foreclosure or action or proceeding instituted under or in connection with a deed of trust or in the event a lender
takes possession of the Premises pursuant to any provisions of a deed of trust. 
  
 ARTICLE XVIII 
 ADDITIONAL PROVISIONS 
  
 18.01. Quiet Enjoyment. LANDLORD covenants that TENANT, upon
paying Rent and performing all of its other obligations under this Lease, shall peacefully and quietly have and enjoy the Premises, throughout the Lease Term, or until this Lease is terminated, as herein provided. 
  
 18.02. Right of Entry. LANDLORD, its agents and
representatives; shall have the right to enter the Premises, at all reasonable times, for any reasonable purpose, including, but not limited to, (a) inspection of Premises, (b) making repairs, replacements, alterations or additions to Premises or
building, (c) exhibiting Premises to prospective tenants during the last one hundred eighty (180) days of the Term, and any such entry, herein authorized, shall not be or constituted an eviction or deprivation of any right, conferred hereunder upon
TENANT; provided, however, LANDLORD shall use reasonable efforts not to interfere with TENANT’S business in the Premises. 
  
 18.03. Intentionally Deleted. 
  
 18.04. Short Form Lease. The parties agree this Lease Agreement shall not be recorded; however, the parties agree that they shall execute a
memorandum, or short form Lease Agreement, substantially in the form attached hereto as Exhibit H, which shall be recorded in the Wake Country Registry. Any cost associated with such recording will be at the TENANT’S expense. 
  
 18.05. Nature and Effect of Agreement. This instrument contains
the completed agreement of the parties and there are no oral or written conditions, terms, understandings or other agreements pertaining thereto, as to the Premises; and nothing herein shall in any way be construed to impose upon either party
hereto, any obligations or restrictions not herein expressly set forth. The laws of the State where the shopping center is located shall govern the validity, interpretation, performance, and enforcement of this Lease Agreement. 
  

 27 

 18.06. Delays. Whenever a period of time is provided in this Lease for LANDLORD or TENANT
to do or perform any act or thing, such party shall not be liable or responsible for any delays due to strikes, lockouts, casualties, acts of God, war, governmental regulation or control or other causes beyond the reasonable control of such party,
and the time for performance specified herein shall be extended for the amount of time such party is so delayed. Notwithstanding anything to the contrary contained in this Lease, this Section 18.06 shall not excuse the late payment of any Rent by
TENANT. 
  
 18.07. Binding Effect of Lease. The
covenants, agreements, and obligations herein contained, except as herein otherwise specifically provided, shall extend to, bind and inure to the benefit of the parties hereto, and their respective personal representatives, heirs, successors and
assigns. 
  
 18.08. Brokerage. TENANT warrants that
it has had no dealings with any broker or agent in connection with this Lease, other than LANDLORD’S broker, if any, and covenants to pay, hold harmless and indemnify LANDLORD from and against, any and all cost, expense or liability for any
compensation, commissions and charges claimed by any other broker or agent with respect to this Lease or the negotiation thereof. 
  
 18.09. Time of Essence. Time is of the essence of this Lease and each and all of its provisions. 
  
 18.10 Intentionally Deleted. 
  
 18.11. Severability. The legal invalidity or unenforceability
of any one or more of the provisions of this Lease shall in no way affect the validity of any other provision of the Lease as a whole. 
  
 18.12. Notice. All notices and demands which may be or required to be given by either party hereunder shall be in writing. All notices and
demands shall be sent by overnight courier or United States mail, certified or registered mail, postage prepaid, addressed to the addresses of LANDLORD and TENANT specified in Article I. 
  
 18.13. Theft or Burglary. LANDLORD shall not be liable to TENANT for losses to TENANT’S property or
personal injury caused by criminal acts or entry by unauthorized persons into the Premises or the Shopping Center. 
  
 18.14. Lender Approval. [Intentionally deleted.] 
  
 18.15. Confidentiality. The provisions of this Lease and any information regarding LANDLORD, including, its upfit and construction process,
and the materials and standards used shall be maintained confidential by TENANT, its agents, employees, officers, and legal and tax advisors; provided, however, TENANT may (i) share the aforesaid information with its agents, employees, officers, and
legal and tax advisors with a need for such information provided that all such persons have been advised of the requirement that all such information be confidential to LANDLORD, or (ii) release any such information as required by a court order,
subpoena, or by 
  

 28 

 applicable law. TENANT acknowledges that the release of information concerning the contents of this Lease, or regarding
LANDLORD to existing or prospective tenants of the LANDLORD or other third parties would cause damage to LANDLORD. Any deliberate, willful or intentional violation of the terms of this Section 18.15 shall constitute an event of default under the
Lease for which LANDLORD shall have recourse to any and all of the remedies set forth herein. 
  
 18.16 LANDLORD’S Financing. It is understand that LANDLORD must obtain financing satisfactory to LANDLORD in order to make the improvements required, and regardless of any and all other provisions
of this Lease, TENANT agrees that LANDLORD shall have from the date of this Lease until the Financing Deadline Date to obtain said financing. In the event LANDLORD shall be unable within said period to obtain such financing on terms acceptable to
LANDLORD in its sole discretion, LANDLORD shall have the right and option at any time prior to the Financing Notice Date, to declare this Lease null and void, and upon such declaration this Lease Agreement shall be null and void and of no effect,
and both LANDLORD and TENANT shall have no rights hereunder or be subject to any liability of any kind or amount hereunder except that LANDLORD shall forthwith upon such termination return the Security Deposit to TENANT heretofore paid over to
LANDLORD pursuant to the provisions of this Lease. 
  
 18.17.
North Carolina Law. This Lease shall be governed by, construed and enforced in accordance with the laws of the State of North Carolina. 
  
 18.18. LANDLORD Compliance with Laws. LANDLORD covenants and agrees that the Premises will be delivered to TENANT upon the Occupancy Date in
good condition, free from all other tenancies and occupancies, and in compliance with all applicable laws and governmental regulations affecting the Shopping Center as of the Occupancy Date, subject to completion of TENANT’S Work. LANDLORD
shall be responsible for curing any violations of applicable laws or governmental regulations at the Premises which are in existence as of the Occupancy Date (whether noticed by the applicable governmental authority as of the Occupancy Date or
thereafter during the Lease Term), except for violations attributable to any act or omission of TENANT, its agents, contractors or employees. If LANDLORD fails to cure any violation existing at the Premises as of the Occupancy Date within thirty
(30) days after receipt of written notice of said violation from TENANT, TENANT may comply therewith and deduct the cost and expense of such compliance from up to twenty five percent (25%) of the monthly Minimum Rent reserved hereunder until
TENANT’S costs and expenses are fully recovered; provided, however, if the violation cannot by its nature be cured within a thirty (30) day period, TENANT shall have no right to comply on LANDLORD’S behalf so long as LANDLORD is diligently
attempting to cure such violation. 
  
 (THE
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK WITH SIGNATURE PAGE TO FOLLOW) 
  

 29 

 IN WITNESS WHEREOF, LANDLORD AND TENANT have signed and sealed this Lease in appropriate and lawful
manner. 
  

					
	 	 	LANDLORD:	 	 NHM00, LLC, A North Carolina Limited
 Liability
Company

			
	 	 	BY:	 	 KANE REALTY CORPORATION, its
 Managing
Agent

	ATTEST:	 	 	 	 
		
	  

	 	  

	                         Secretary
	 	John M. Kane
	 	 	Chief Executive Officer
			
	Affix Corporate Seal	 	 	 	 
	 	 	TENANT:	 	NORTH STATE BANCORP., a North Carolina Corporation
	ATTEST:	 	 	 	 
	 	 	 	 	 
	  

	 	  

	                         Secretary
	 	President
		
	 	 	 Larry D. Barbour

	 	 	Print Name

  
 ACKNOWLEDGEMENT OF
CORPORATE TENANT 
  
 STATE OF
                     
  
 COUNTY OF                      
  
 I,
                                , a Notary Public of the County and State
aforesaid, do hereby certify that                                 , personally
appeared before me this day and stated that he is                                 
of                                  and acknowledged, on behalf of
                                , the due execution of the foregoing instrument.

  
 WITNESS my hand and official seal, this
                     day of
                    , 20     
  

	
	
	  

	NOTARY PUBLIC

  
 My Commission Expires:
                     
  

 30Assignment and Assumption of Lease

 Exhibit 10.9 
  

					
	 NORTH CAROLINA
	 	)	  	 
	 	 	)	  	    ASSIGNMENT AND ASSUMPTION OF LEASE
	 WAKE COUNTY
	 	)	  	    (AND FINANCING STATEMENT)

  
 THIS ASSIGNMENT AND
ASSUMPTION OF LEASE AND FINANCING STATEMENT, (the “Assignment”) is made and entered into effective on and as of January 14, 2000 by and among Oberlin Investors Two, LLC (successor in interest to PF Properties, LLC, successor in interest to
North Hills Properties, Inc., a North Carolina corporation), P.O. Box 17004, Raleigh, NC 27619 (the “Lessor”); Branch Banking and Trust Company a North Carolina banking corporation, Real Estate Services, P.O. Box 1220, Winston-Salem, NC
27102-1220 (the “Lessee”); and WCB Group LLC or its proposed nominee North State Bank (Proposed), P.O. Box 18367, Raleigh, NC 27619, with a copy to Mr. Pat Crosby, Esq. Kilpatrick Stockton, 3737 Glenwood Avenue, Suite 400, Raleigh, NC
27612 (the “New Lessee”); 
  
 WHEREAS, the Lessee or its
predecessor in interest and the Lessor entered into (a) a North Carolina Lease Agreement dated as of July 23, 1986, as amended by that certain Amendment to Lease dated February 17, 1997, a copy of which is attached hereto as Schedule I and (b) a
Memorandum of Lease dated October 29, 1986 recorded in Book 3867, at Page 420, of the Wake Public Registry (collectively the “Lease”), with respect to the premises described in the Lease (the “Premises”); and the terms and
conditions of such Lease are incorporated herein by reference as if set forth herein; and 
  
 WHEREAS, the New Lessee has requested that Lessee assign all of its rights, title and interest in and to the Lease to the New Lessee with the consent of the Lessor; and the Lessee and the New Lessee have requested
that the Lessor consent to such assignment of the Lease; and the Lessor has consented to such assignment of the Lease provided that Lessee is not released from any of its obligations under the Lease except to the extent performed by the New Lessee.

  
 NOW, THEREFORE, in consideration of the premises and payment
of $100.00 and other valuable considerations paid by New Lessee to the Lessee and the Lessor (the receipt and sufficiency of which is hereby acknowledged), the Lessor, the Lessee and the New Lessee do hereby agree as follows: 
  
 (1) Lessor does hereby consent to the assignment of the Lease by Lessee to
New Lessee and the use of the Premises by New Lessee for a banking facility and/or general office space only and for no other purpose. After the Effective Date (as hereinafter defined), Lessee shall be relieved of its obligations and liabilities
under the Lease to the extent (but only to the extent) such obligations and liabilities are performed and paid by the New Lessee. It is expressly understood by Lessor and Lessee that Lessee, to and until September 30, 2006, shall remain fully liable
for the compliance by New Lessee with the terms and conditions of this Lease and Lessee shall not be released from performing any terms, covenants and conditions of this Lease except to the extent performed by the New Lessee. In the event the New
Lessee is in default under any of the terms and conditions of the Lease, the Lessor shall give Lessee written notice of such default and the opportunity to cure any such default. Lessee agrees that in the event that New Lessee defaults in the
payment of any installment of rent or the performance of any duty contained in the Lease, Lessee shall pay or perform same within ten (10) days following receipt of notice from Lessor of the default of the New Lessee. The liability of Lessee shall
be and is primarily direct and immediate. No waiver by Lessor in favor of Lessee with regard to any default by New Lessee shall operate as a waiver of any other default on a future occasion. Lessor shall have no obligation to pursue New Lessee, but
may at all times and at any time demand payment and performance directly from Lessee. 
  
 (2) Lessee hereby assigns, transfers and conveys unto New Lessee all of Lessee’s right, title and interest as Lessee in, to and under the Lease, upon the following terms and conditions: 
  
 (a) The effective date of the assignment of the Lease shall be February 1,
2000 (the “Effective Date”); 

 (b) From and after the Effective Date New Lessee shall be liable for the payment of the monthly rent and
for the payment of any and all other costs and expenses due under the Lease (to Lessor and others) and continuing for the remainder of the original lease Term and any renewal or extensions through and including the option to renew expiring on
September 30, 2006. 
  
 (c) Lessee’s interest in the Premises
described in the Lease and in the improvements on said property are being assigned to New Lessee in their existing condition, “AS IS, WHERE IS AND WITH ALL FAULTS”, without representation or warranty, express or implied, as to the
condition or merchantability thereof or the fitness thereof for any particular use or purpose; and Lessee’s interest in the Premises described in the Lease is subject to any liens, easements, rights-of-way, restrictions or other matters
affecting title to the Premises imposed by Lessor in accordance with the terms of the Lease; and 
  
 (d) Lessee shall provide New Lessee, and New Lessee shall provide Lessee, a copy of any notice of default or other demand received from the Lessor under
the Lease, and although New Lessee shall be primarily liable for the performance of the obligations under the Lease, Lessee, at is option, may take such steps as it deems necessary to cure any such default or satisfy any demand made by the Lessor
under the Lease. 
  
 (e) Lessee acknowledges that New
Lessee’s ability to operate as a bank in the Premises is contingent on approval of New Lessee by the North Carolina Banking Commission on March 15, 2000 and by the FDIC in May of 2000. In the event New Lessee does not receive the approval of
the North Carolina Banking Commission on March 15, 2000 or of the FDIC in May of 2000, New Lessee shall have until May 31, 2000 to terminate New Lessee’s obligations under this Assignment by providing written notice thereof to Lessee by such
date, in which event neither party shall have any further rights or obligations under this Assignment. 
  
 (3) New Lessee hereby agrees as follows: 
  
 (a) New Lessee accepts the assignment of the Lease, assumes and agrees to perform directly any and all of the duties and obligations (which accrue on or
after the Effective Date) of Lessee as Lessee under the Lease, and agrees to abide by all of the terms and conditions of the Lease; and New Lessee expressly agrees not be exercise any options to renew the Lease except as described in paragraph 5
below. 
  
 (b) New Lessee agrees to indemnify, defend and hold
harmless Lessee from and against any and all costs, claims, damages and liabilities (including, but not limited to, attorneys’ fees) arising from or relating to the Lease as to matters occurring on or after the Effective Date of this
Assignment. 
  
 (c) New Lessee will not remove any of the
furniture, fixtures or equipment from the Premises described in attached Schedule II (the “FFE”) without Lessee’s prior written consent. In addition, New Lessee hereby grants, transfers, and conveys unto Lessee a security interest
pursuant to the North Carolina Uniform Commercial Code (the “Code”) in the FFE. Without the prior written consent of Lessee, New Lessee shall not create or suffer to be created any other security interest in such items. This Assignment
shall constitute a security agreement pursuant to the Code for the FFE. In exercising its rights and remedies under the Code, Lessee may proceed against the personal property described herein and all of New Lessee’s interest under the Lease
separately or together and in any order whatsoever, without in any way affecting the availability of Lessee’s remedies under the Code or herein. This document shall 

 
constitute a financing statement filed as a fixture filing in accordance with NC General Statute Section 25-9-402 (or any amendment thereto). For purposes of
complying with requirements of NC General Statute Section 25-9-402, the name of New Lessee, as Debtor, and Lessee, as Secured Party, and the respective addresses are set forth on the first page of this Assignment; the types and items of Collateral
are described in this sub-paragraph and the description of the Premises is described in the Memorandum of Lease referenced above. The Collateral is or includes fixtures. 
  
 (4) Lessee hereby confirms and agrees as follows: 
  
 (a) Lessee is the sole Lessee under the Lease and is the sole owner of the Lessee’s interest thereunder; and Lessee has
not previously assigned the Lease or any interest therein or sublet the Premises subject to the Lease, in whole or in part; 
  
 (b) The Lease has not been modified or amended except as noted above, and the Lease is in full force and effect as of the date hereof; 
  
 (c) Lessee is not (to the best of its knowledge) in default under any of the
terms, covenants or conditions of the Lease, and all rent and other payments due and payable under the Lease as of the date hereof have been paid; and 
  
 (d) Lessee agrees to indemnify, defend and hold harmless New Lessee from and against any and all costs, claims, damages and liabilities (including, but
not limited to, attorneys’ fees) arising from or relating to the Lease as to matters occurring prior to the Effective Date of this Assignment. 
  
 (e) Lessee agrees not to exercise any options to renew the Lease other than the second option to extend the Lease to and until September 30, 2006.

  
 (5) Lessee expressly assigns to New Lessee the right to extend
the term of the Lease as set forth in the next sentence, but Lessee shall have no right to extend the Lease for any period after September 30, 2006. New Lessee hereby agrees to exercise the second option to extend the term of the Lease from October
1, 2001 to September 30, 2006. 
  
 Except as herein modified and
assigned, the terms and conditions of the Lease shall remain in full force and effect. In the event of any conflict or inconsistency with the terms and conditions of the Lease and this Assignment, this Assignment shall control. 
  
 IN WITNESS WHEREOF, Lessor, Lessee and New Lessee have caused this Assignment
to be executed by their respective corporate officers, all pursuant to authority duly granted. 
  
 [SIGNATURE PAGE FOLLOWS] 

					
	LESSOR:	 	 
		
	OBERLIN INVESTORS TWO, LLC	 	 
			
	By:	 	 /s/ illegible

	 	(Seal)
	 	 	                                      
  ,                             	 	 
		
	LESSEE:	 	 
	
	BRANCH BANKING AND TRUST COMPANY
		
	By:	 	  

	 	 	                                    , Sr. Vice
President	 	 

  

	
	ATTEST:
	  

 Assistant
Secretary

	
	[CORPORATE SEAL]

  

					
	NEW LESSEE:	 	 
		
	WCB GROUP, LLC	 	 
	[for North State Bank (Proposed)]	 	 
			
	By:	 	 /s/ Larry D. Barbour

	 	(SEAL)
	 	 	Managing Partner	 	 

			
	 LESSOR:

	
	 OBERLIN INVESTORS TWO, LLC

		
	 By:
	 	  

	 	 	                                        
 Manager

	
	 LESSEE:

	
	 BRANCH BANKING AND TRUST COMPANY

		
	 By:
	 	 /s/ illegible

	 	 	                                       
 Sr. Vice President

  

	
	ATTEST:
	
	 /s/ Peggy Moore

	Assistant Secretary
	
	[CORPORATE SEAL]

  

			
	NEW LESSEE:
	
	WCB GROUP, LLC
	[for North State Bank (Proposed)]
		
	By:	 	  

	 	 	                                       
 Manager

 STATE OF NORTH CAROLINA – COUNTY OF WAKE 
  
 I, the undersigned, a Notary Public of the County and State aforesaid, certify that Larry D. Barbour Manager of WCB GROUP
LLC, a North Carolina limited liability company (the “Company”) personally came before me this day and acknowledged the execution of the foregoing instrument for and on behalf, and in his capacity as Manager, of WCB GROUP LLC a North
Carolina limited liability. 
  
 Witness my hand and official seal,
this the 14 day of January, 2000. 
  

			
	 	 	 /s/ Andrew J. Bilodeau

	 	 	Notary Public

  
 My commission expires: 8/2/2004

  
 STATE OF NORTH CAROLINA – COUNTY OF FORSYTH 
  
 I, the undersigned, a Notary Public of the County and State aforesaid,
certify that
                                        
personally came before me this day and acknowledged that he/she is                             
Secretary of Branch Banking and Trust Company, a North Carolina Banking Corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its
                     President, sealed with its corporate seal and attested by
                     as its
                     Secretary. 
  
 Witness my hand and official seal, this the day of , 2000. 
  

			
	 	 	  

 Notary Public

  
 My commission expires:
                     
  
 STATE OF NORTH CAROLINA – COUNTY OF WAKE 
  
 I, the undersigned, a Notary Public of the County and State aforesaid, certify that James I. Anthony, Jr. personally came before me this day and
acknowledged that he/she is Manager of Oberlin Investors Two, LLC, a North Carolina Limited Liability Company, and that by authority duly given and as the act of the corporation, the foregoing Instrument was signed in its name by its Manager, sealed
with its Corporate seal. 
  
 Witness my hand and official seal,
this the 14th day of January, 2000. 
  

			
	 	 	 /s/ illegible

	 	 	Notary Public

  
 My commission expires: 11/30/2002

 STATE OF NORTH CAROLINA – COUNTY OF FORSYTH 
  
 I, the undersigned, a Notary Public of the County and State aforesaid, certify that
                                        
Manager of WCB GROUP LLC, a North Carolina limited liability company (the “Company”) personally came before me this day and acknowledged the execution of the foregoing instrument for an on behalf, and in his capacity as Manager, of WCB
GROUP LLC a North Carolina limited liability. 
  
 Witness my hand
and official seal, this the      day of                     , 1999. 
  

	
	  

 Notary
Public

  
 My commission expires:
                     
  
 STATE OF NORTH CAROLINA – COUNTY OF FORSYTH 
  
 I, the undersigned, a Notary Public of the County and State aforesaid, certify that Peggy Moore personally came before me this day and acknowledged that
he/she is Asst Secretary of Branch Banking and Trust Company, a North Carolina Banking Corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its Sr. Vice President, sealed
with its corporate seal and attested by herself as its Asst Secretary. Witness my hand and official seal, this the 14 day of January, 2000. 
  

			
	 	 	 /s/ illegible

	 	 	Notary Public

  
 My commission expires: November 21,
2000 
  
 STATE OF NORTH CAROLINA – COUNTY OF
                     
  
 I, the undersigned, a Notary Public of the County and State aforesaid, certify that
                                        
personally came before me this day and acknowledged that he/she is                      Secretary of Oberlin Investors Two, LLC (successor in
interest to PF Properties, LLC, successor in interest to North Hills Properties Inc., a North Carolina corporation), and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its
                     President, sealed with its Corporate seal and attested by
             self as its                      Secretary. Witness my hand
and official seal, this the      day of                     , 1999. 
  

	
	  

 Notary Public

  
 My commission expires:
                     

			
	NORTH CAROLINA	 	AMENDMENT TO LEASE

  
 WAKE COUNTY 
  
 THIS AGREEMENT entered into as of the 17th day of February, 1997, by and
between NORTH HILLS PROPERTIES, INC., (hereinafter called “LANDLORD”), and BRANCH BANKING AND TRUST COMPANY, (hereinafter called “TENANT”): 
  
 W I T N E S S E T H: that 
  
 WHEREAS, LANDLORD and TENANT heretofore executed and delivered a certain LEASE AGREEMENT dated July 23, 2986, by which LANDLORD leased to TENANT certain
premises located at 6200 Falls of Neuse Road, Raleigh, North Carolina, and also being set forth in Exhibit B of the LEASE AGREEMENT, in North Ridge Office Building, Raleigh, North Carolina, for a term of years; and 
  
 WHEREAS, LANDLORD and TENANT desire to amend said LEASE AGREEMENT:

  
 NOW THEREFORE, in consideration of the premises, one dollar
($1.00) each to the other given, receipt of which is hereby acknowledged and other good and valuable consideration, LANDLORD and TENANT agree as follows: 
  
 1. The Term of said Lease is hereby retroactively extended for a period of five (5) years commencing on October 1, 1996 and ending on September 30, 2001 (the
“extended term”); 
  
 2. Article IV(A)(ii) Adjustment for Operating
Expenses – Premises. The term “Premised (3,848 sq. ft.)”, shall be modified and replaced with “Premised (4,473 sq. ft.)”; and 
  
 3. Article XXIII(a) Notices shall be modified and replaced as follows: If to Lessee, to: 
  
 Branch Bank and Trust Company 
 Real Estate Services 
 PO Box 1220 
 Winston-Salem, NC 27102-1220 
  
 4. All other terms and conditions of said LEASE AGREEMENT between the parties hereto dated July 23, 1986 are hereby confirmed and shall
remain in full force and effect. 
  

					
	LANDLORD:	 	 	 	NORTH HILLS PROPERTIES, INC.

					
			
	ATTEST:	 	 	 	 
	 /s/ Carol ter Wee

	 	By:	 	 /s/ James A. Walker

	Carol ter Wee, Secretary	 	 	 	James A. Walker, President
	[CORPORATE SEAL]	 	 	 	 

  

					
	LESSEE:	 	 	 	BRANCH BANKING AND TRUST COMPANY

					
			
	ATTEST:	 	 	 	 
	 /s/ Peggy Moore

	 	By:	 	 /s/ Illegible

	Assistant Secretary	 	 	 	Vice President
	[CORPORATE SEAL]	 	 	 	 

 NORTH CAROLINA LEASE AGREEMENT 
  
 THIS LEASE AGREEMENT is made and entered into as of the 23rd day of July, 1986, by and between NORTH HILLS PROPERTIES, I (hereinafter called “Lessor”) and BRANCH BANKING AND TRUST COMPANY (hereinafter called
“Lessee”): 
  
 W I T N E S S E T H: 
  
 I. PREMISES 
  
 In consideration of the rents hereinafter agreed to be paid and in
consideration of the mutual covenants and agreements hereinafter recited, Lessor does hereby lease and demise unto Lessee and Lessee does hereby lease and take as tenant from Lessor those certain premises (hereinafter called the
“Premises”) at 6200 Falls of Neuse Road (hereinafter called the “Building” and more particularly described in Exhibit A (a legal description of the property) and Exhibit B (a floor plan of the leased Premises) which are
attached and incorporated in this lease. 
  
 II. TERM

  
 The term of this lease shall begin on October 1, 1986, and
shall end at 12:00 midnight on the 30th day of September 1996. Provided that Lessee shall not be in default
hereunder, and provided that Lessee gives ninety (90) days advance written notice of exercise prior to the expiration of the term then in effect, Lessee shall have the option to extend the term of this lease for four (4) additional terms of five (5)
years, each subject to all terms and conditions of this lease. 
  
 III. RENT 
  
 (A) Lessee shall pay to Lessor the
sum of Fifty Three Thousand Four Hundred Ten and 24/100 Dollars ($53,410.24) per year as annual base rent for the Premises, (hereinafter sometimes referred to as the “Base Rent”), payable without previous demand and in monthly installments
equal to one-twelfth (1/12) of the annual Base Rent each due on the 1st day of each month during the term of this
lease, and payment for the first month shall be made upon the date Lessor shall have made the Premises available for possession and premises shall have been accepted by Lessee. Rent for any partial month shall be paid in advance at that daily rate
equal to the then existing monthly Base Rent divided by the number of days in the month for which such rent is due. 
  
 (B) Commencing as of October 1, 1989, and as of October 1 of each three years thereafter (the “Adjustment Date”), the Base Rent set forth in the
foregoing subparagraph (A) shall be adjusted as follows: 
  
 (i)
The Revised Consumer Price Index for Urban Wage Earners and Clerical Workers, U.S. City Average (1967 = 100), all items, published by the United States Department of Labor, Bureau of Labor Statistics (the “Index”), which is published for
the month of September immediately prior to the Adjustment Date (the “Extension Index”), shall be compared with the Index published for the month of September for the year 1986 (the “Beginning Index”). The Base Rent shall be
adjusted by adding to the Base Rent an amount equal to the initial Base Rent as set forth in the foregoing subparagraph (A) multiplied by a fraction, the numerator of which is the Extension Index less the Beginning Index and the denominator of which
is the Beginning Index. Lessee thereafter shall pay to Lessor monthly in the manner provided in the foregoing subparagraph (B). Any tri-annual increase will be limited to a maximum of six percent (6%) increase, and the rent shall never be deceased.

 (ii) On or before November 31 of each adjustment year during the term of this lease, (included any
renewal terms) Lessor shall furnish Lessee with a statement setting forth the adjustment, if any, to Base Rent required by this subparagraph (B). From the beginning of each such adjustment year and until Lessor shall furnish Lessee with a statement
as aforesaid, Lessee shall continue to pay Base Rent at the rate it shall have been obligated to pay the same during the preceding calendar year. Beginning with the first day of the calendar month following the date upon which Lessor shall have
delivered to Lessee each such statement, Lessee shall pay Base Rent at the rate as adjusted under this subparagraph (B) and shall pay Lessor on such first day of the calendar month following the date upon which Lessor shall have delivered to Lessee
each such statement, any difference between Base Rent Lessee shall have paid Lessor during such year and the adjusted Base Rent Lessee shall have been obligated to pay Lessor during such year under this subparagraph (B). 
  
 (iii) In the event that the Bureau of Labor Statistics shall change the base
period (now 1967 = 100), the new index numbers shall be substituted for the old index numbers in making the calculation provided for in this subparagraph (B). It is agreed that in the event the aforesaid index is discontinued or revised, such other
index with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if there had been no such discontinuation or revision. If there shall be no such other index, the parties shall accept comparable
statistics on the purchasing power of the consumer dollar as published at the time of such discontinuation by a responsible financial periodical of recognized authority. Any dispute between the parties regarding any such discontinuation or revision
shall be determined by arbitration in accordance with Article 45A, Chapter 1 of the North Carolina General Statutes as then prevailing or as otherwise then provided by the North Carolina General Statutes. 
  
 IV. ADJUSTMENT FOR OPERATING EXPENSES – PREMISES 
  
 (A) For the purpose of this lease, the following defined terms shall have
the meanings set forth below: 
  
 (i) Base Year shall mean the
calendar year 1986. 
  
 (ii) Lessee’s Proportionate Share of
Lessor’s Increased Operating Expenses shall mean that fraction of such Operating Expenses, the numerator of which is the number of gross leasable square feet contained in the Premises (3,848 sq. ft.), and the denominator of which is the total
number of gross leasable square feet contained in the building (39,799 sq. ft.). 
  
 (iii) Lessor’s Operating Expenses shall mean and include ad valorem real estate taxes and fire and casualty insurance premiums only. 
  
 (B) With respect to each calendar year or portion thereof during the term of this lease, Lessee shall pay Lessor as
additional rent in the manner hereinafter provided, Lessee’s Proportionate Share of Lessor’s Increased Operating Expenses in the amount by which Lessor’s Operating Expenses paid or incurred by Lessor during such period exceeded
Lessor’s Operating Expenses paid or incurred by Lessor during the Base Year. It is acknowledged and agreed that with respect to any calendar year or portion thereof it will not be possible to determine the actual amount of such excess, if any,
until after the end of such calendar year. Therefore, on or before July 31, 1988, and on or before July 31 of each calendar year, thereafter, during the term of this lease, Lessor shall furnish Lessee with a statement setting forth the total amount
of Lessee’s Proportionate Share of Lessor’s Increased Operating Expenses in the amount by which Lessor’s Operating Expenses for the preceding calendar year exceeded Lessor’s Operating Expenses for the Base Year, if any. Upon
receipt by Lessee of Lessor’s statement of additional rent for Increased Operating Expenses, Lessee shall pay same to Lessor in lump sum within sixty days of receipt of Lessor’s statement of such charges. 

 (C) In the event that Lessee is required to pay a share of Lessor’s Operating Expenses pursuant to
this Section IV, Lessee shall have the right, at Lessee’s expense, to inspect Lessor’s books and records showing Lessor’s Operating Expenses for the Base Year and the calendar year in question. Lessor’s statement setting forth
the total amount of Lessee’s Proportionate Share of Lessor’s Increased Operating Expenses furnished to Lessee in accordance with the provisions of this Section IV shall be deemed to have been approved by Lessee unless protested by Lessee
in writing within fifteen (15) days after delivery of such statement to Lessee. 
  
 (D) It is understood and agreed that Lessee’s Proportionate Share of Lessor’s Increased Operating Expenses, for the purposes of the default provisions hereof, shall be deemed to be additional rent due from
Lessee; and any default in the payment thereof shall entitle Lessor to all remedies provided for herein or at law or in equity on account of Lessee’s failure to pay rent. The other provisions hereof to the contrary notwithstanding, it is agreed
that Lessee’s payments pursuant to this Section IV of a portion of the increased expense of operating the Building shall not be deemed payments of rent as that term in construed relative to governmental wage and price controls or analogous
governmental actions affecting the amount of rent which Lessor may charge Lessee. 
  
 V. TENANT WORK – “UPFITTING” 
  
 Lessor will deliver the Premises to Lessee with the following work completed: 
  

	 	•	 	Solid exterior walls complete on the outside and ready to receive paint or wallcovering on the inside 

  

	 	•	 	Electricity to distribution panel within tenants space or at designated point in building agreed to by tenant 

  

	 	•	 	Minimum of three inch (3”) conduit from building entry point to point within Premises specified by Lessee 

  

	 	•	 	Heating and air conditioning main trunk lines into the Premises (Lessee will install controls which will control heating and air conditioning for Premises separately from the rest
of the building) 

  
 All other work required to be
performed and materials required to be provided to prepare the Premises for occupancy by Lessee shall be performed and provided by Lessee, at its sole cost and expense; provided, however, Lessor agrees to provide the sum of Forty Six Thousand One
Hundred Seventy-Six Dollars ($46,176.00) for upfitting of the Premises (the “Upfitting Allowance”). Lessor will pay the Upfitting Allowance to Lessee upon receipt by Lessor of a certificate from Lessee or Lessee’s contractor
certifying that all work on the Premises has been completed and reasonable substantiation of all costs incurred by Lessee in preparing the Premises for occupancy (exclusive of Lessee’s furniture and fixtures). 
  
 Lessee shall not grant, place or suffer, or permit to be
granted, placed or suffered, against the Building or any portion thereof, any lien, security interest, pledge, conditional sale contract, claim charge or encumbrances (whether conditional, contractual or otherwise) and if any of the aforesaid does
arise or is asserted, Lessee will, promptly upon demand by Lessor and at Lessee’s expense, cause shame to be released or adequately bonded. 

 VI. DELIVERY OF POSSESSION 
  
 If Lessor for any reason whatsoever cannot deliver possession of the Premises to Lessee at the commencement date of the term
as above specified, this lease shall not be void or voidable nor shall Lessor be liable to Lessee for any loss or damage resulting therefrom; but in that event there shall be a proportionate reduction of all rent for the period between the said
specified date for commencement of the term and the date when Lessor in fact does deliver possession to Lessee. No such failure to deliver possession on the date of commencement of the term shall be construed to extend the term of this lease. The
other provisions of this paragraph to the contrary notwithstanding, it is provided that if possession of the Premises is not delivered to Lessee within one hundred and eighty (180) days of the beginning of the term as specified in Section II hereof
for any reason, then this lease may be terminated by Lessee at any time prior to delivery of possession of the Premises to Lessee and shall be so terminated upon the receipt by Lessor of written notice from Lessee to such effect, whereupon Lessee
shall have no further liability to the Lessor. 
  
 VII.
REMEDIES UPON DEFAULT 
  
 (A) If one or more of the
following events (hereinafter called “Events of Default”) shall occur and shall continue for such time after any notice which may be required to be given is given as hereinafter provided, to-wit: 
  
 (i) If Lessee shall fail to pay any rent or any other sum due hereunder
when due in accordance with the terms of this lease and such default shall continue for a period of five (5) days after written notice to Lessee thereof; or 
  
 (ii) If Lessee shall vacate or abandon the Premises or fail to operate its business continuously and uninterruptedly therein and such default shall
continue for a period of ten (10) days after written notice to Lessee thereof; or 
  
 (iii) If Lessee shall fail to keep or perform or abide by any other term, condition, covenant or agreement of this lease or of the Rules and Regulations now or hereafter in effect and such default shall continue for a
period of thirty (30) days after written notice to Lessee thereto without action being begun to correct such default within such thirty (30) day period and being pursued diligently thereafter; or 
  
 (iv) If Lessee (or, if Lessee is a partnership, if any partner of Lessee)
shall file a petition in bankruptcy or take or consent to any other action seeking any such judicial decree or shall make any assignment for the benefit of its creditors or shall admit in writing its inability to pay its debts generally as they
become due or if any court of competent jurisdiction shall enter a decree or order adjudication it bankrupt or insolvent or if any trustee or receiver for Lessee or if any person shall file a petition for involuntary bankruptcy against Lessee and
such appointment or petition shall not be stayed or vacated within sixty (60) days of entry thereof; or 
  
 (v) If Lessee’s interest in this lease or the Premises shall be subjected to any attachment, levy or sale pursuant to any order or decree entered
against Lessee in any legal proceeding and such order or decree shall not be vacated within thirty (30) days of entry thereof: 
  
 (a) Lessor, with or without terminating this lease, immediately or at any time thereafter, may re-enter the Premises and correct or repair any condition
which shall constitute a failure on Lessee’s part to keep or perform or abide by any term, condition, covenant or agreement of this lease or of the Rules and Regulations now or hereafter in effect. Lessee shall reimburse and compensate Lessor
as additional rent within fifteen (15) days after delivery of any statement to Lessee by Lessor for any expenditures made by Lessor in making such corrections or repairs. 

 (b) Lessor, with or without terminating this lease, immediately or at any time thereafter, may demand in
writing that Lessee vacate the Premises. Lessee shall vacate the Premises and remove therefrom all property thereon belonging to Lessee within thirty (30) days of receipt by Lessee of such notice from Lessor, whereupon Lessor shall have the right to
re-enter and take possession of the Premises. 
  
 (c) Lessor,
with or without terminating this lease, immediately or at any time thereafter, may re-enter the Premises and remove Lessee therefrom and all property belonging to or placed on the Premises by, at the direction of, or with the consent of Lessee.

  
 (d) Lessor, with or without terminating this lease,
immediately or at any time thereafter, may re-let the Premises or any part thereof for such time or times and at such rent or rents and upon such other terms and conditions as Lessor in its sole discretion may deem advisable; and Lessor may make any
alterations or repairs to the Premises which it may deem necessary or proper to facilitate such re-letting. Lessee shall pay all costs of such re-letting including the cost of any such repairs to the Premises; and, if this lease shall not have been
terminated, Lessee shall continue to pay all rent due under this lease up to and including the date of beginning of payment of rent by any subsequent lessee of part or all of the Premises and thereafter Lessee shall pay monthly during the remainder
of the term of this lease the difference, if any, between the rent collected from any such subsequent lessee or lessees and the rent reserved in this lease, but Lessee shall not be entitled to receive any excess of any such rents collected over the
rents reserved herein. 
  
 (e) Lessor, immediately or at any time
thereafter, may terminate this lease without notice or demand to vacate the Premises. This lease shall be deemed to have been terminated upon receipt by Lessee of written notice of such termination and upon such termination Lessor shall have and
recover from Lessee all damages Lessor may suffer by reason of such termination including without limitation the cost (including legal expenses and reasonable attorneys fees) of recovering possession of the Premises and the cost of any repairs to
the Premises which are necessary or proper to prepare the same for re-letting. In addition thereto, Lessor, at its election, shall have and recover from Lessee either (i) the rents which Lessor would be entitled to receive from Lessee pursuant to
the provisions of Paragraph III(A) on page 1 if the lease were not terminated, or (ii) the rents which Lessor would be entitled to receive from Lessee pursuant to the provisions of subparagraph (d) above if the lease were not terminated. Such
election shall be made by Lessor’s giving Lessee written notice thereof within thirty (30) days of the notice of termination. 
  
 (B) In the event of any re-entry of the Premises by Lessor pursuant to any of the provisions of this lease, Lessee hereby waives all claims for damages
which may be caused by such re-entry by Lessor except such claims as arise from the negligence of Lessor. No such re-entry shall be considered or construed to be a forcible entry. 
  
 (C) No course or dealing between Lessor and Lessee or any delay on the part of Lessor or Lessee in exercising any rights it
may have under this lease shall operate as a waiver of any of the rights of Lessor or Lessee hereunder nor shall any waiver of a prior default operate as a waiver of any subsequent default or defaults; and no express waiver shall affect any
condition, covenant, rule or regulation other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 
  
 (D) The exercise by Lessor of any one or more of the remedies provided in this agreement shall not prevent the subsequent exercise by Lessor of any one or
more of the other remedies herein provided. All remedies provided for in this lease are cumulative and may, at the election of Lessor, be exercised alternatively, successively or in any other manner and are in addition to any other rights provided
by law. 

 VIII. END OF TERM, HOLDING OVER AND ATTORNEY’S FEES 
  
 Upon the expiration of the term or other termination of this lease, Lessee
shall quit and surrender to Lessor the Premises, broom clean, in good order and condition, ordinary wear and tear excepted and Lessee shall remove from the Premises all of its property. If Lessee shall hold over after the expiration of the term or
other termination of this lease, such holding over shall not be deemed to be a removal of this lease but shall be deemed to create a tenancy-at-will. By such holding over, Lessee shall be deemed to have agreed to be bound by all of the terms and
provisions of this lease except those as to the term hereof; and during any such tenancy-at-will, Lessee shall pay Base Rent at that rate equal to one hundred twenty-five percent (125%) of that provided for the foregoing Section II after adjustment
as therein provided. If any rent owing under this lease is collected by or through an attorney at law, Lessee agrees to pay Lessor’s reasonable attorneys’ fees not in excess of ten percent (10%) of the amount so collected or, if the
statutes or other laws of the State of North Carolina in effect at the time of such collection limit the amount so payable as attorneys’ fees, then the maximum amount allowed by such laws or statutes. 
  
 IX. USE OF PREMISES 
  
 The Premises shall be used and occupied by Lessee as a banking facility
and/or general office space only and for no other purpose. Lessee shall not use the Premises or any portion thereof for any illegal or unlawful purpose and will not cause or permit a nuisance to be created or maintained therein. Lessee shall not
maintain or permit any coin operated or vending machine within the Premises or the Building without the prior written consent of Lessor and the granting of such consent by Lessor shall not preclude any charge to Lessee for the use of utilities
pursuant to the provisions of Section XI hereof. 
  
 X.
ASSIGNMENT AND SUBLETTING 
  
 Lessee shall not sell,
assign, pledge or hypothecate this lease or sublet the Premises or any part thereof to any person or entity other than a parent, subsidiary or affiliated corporation of Lease without the prior written consent of Lessor, which consent shall not be
withheld unreasonably. Consent by Lessor to one assignment or subletting shall not destroy or operate as a waiver of the prohibitions contained in this Section as to future assignments or subleases; and all such later assignments or subleases shall
be made only with Lessor’s prior written consent, which consent shall not be withheld unreasonably. In the event any assignment of this lease or subletting of the Premises or any part thereof is made by Lessee and whether or not the same is
consented to by Lessor, Lessee shall remain liable to Lessor for payment of all rent herein provided for and for the faithful performance of all of the covenants and provisions of this lease by any assignee or sub-lessee to the same extent as if the
lease had not be assigned or the Premises sublet. If Lessee shall request Lessor’s consent to an assignment of this lease or a subletting of the Premises or any portion thereof, it shall do so by written notice to Lessor naming the proposed
assignee or subtenant, designating any portion of the Premises to be sublet and setting forth the other terms and conditions of such proposed assignment or subletting. Lessee shall not be entitled to receive any excess of rents collected over rents
reserved herein. 
  
 XI. UTILITIES AND OTHER SERVICES

  
 Lessor shall furnish to the Premises from 8:00 a.m. to 6:00
p.m. Monday to Thursday, from 8:00 a.m. to 7:00 p.m. on Friday, and from 9:00 a.m. to 12:00 p.m. on Saturday, exclusive of state banking holidays, heating and air conditioning for the reasonably comfortable use of the Premises; 

 
electricity for general office use; water for drinking; lavatory, and toilet purposes; and operatorless elevator service. Lessee shall provide and pay for
any and all security measures it deems necessary, including but not limited to locking devices, alarms, extra strength barriers, guards, etc. All additional costs resulting from Lessee’s extraordinary usage of heating and air conditioning,
electricity or water, or from Lessee’s requiring services at times other than as above provided shall be paid by Lessee; and Lessee shall not install equipment for any of the foregoing without Lessor’s prior written consent, which consent
Lessor may withhold if in Lessor’s opinion such equipment may not be used safely in the Premises or electrical service is not adequate therefor. Provided that Lessor acts reasonably and in good faith, there shall be no abatement or reduction of
rent by reason of any of the foregoing services not being provided continuously to Lessee, nor shall interruption of any of such services constitute either a constructive or a partial eviction of Lessee. 
  
 XII. COMMON AREAS 
  
 Lessor shall adequately maintain throughout the term hereof and any
extension thereof, all of the Common Areas in good and usable condition. The use and occupancy by the Lessee of the Premises shall include the use in common with others entitled thereto of the Common Areas including sidewalks, and other such
facilities as may be designated by the Lessor as Common Areas. The Lessor reserves the right, from time to time, to establish, modify and enforce reasonable rules and regulations with respect to all such Common Areas and facilities mentioned in this
paragraph. Breach of such rules and regulations by Lessee shall be an event of default under this lease, provided such breach continues after written notice thereof from Lessor. The Lessor shall have the right from time to time to change areas,
level, location and arrangement of the Common Areas and other facilities referred to herein. In addition, Lessor may do and perform such other acts in and to such areas and improvements as in the use of reasonable business judgment the Lessor shall
determine to be advisable with a view toward improving the convenience and use thereof by the Lessee and other Lessees, their clients, customers, employees, and other visitors. 
  
 XIII. ALTERATIONS BY LESSEE 
  

Lessee shall make no alterations, additions, or improvements to the Premises without prior written consent of Lessor, which consent shall not be
withheld unreasonably; and any request by Lessee of Lessor to make any such alterations, additions and improvements shall be accompanied in each instance by plans and specifications for such alterations, additions and improvements in such detail as
Lessor reasonably may require. All alterations, additions and improvements (including without limitation all partitions, walls, railings, carpeting, floor coverings and other fixtures) made by, for, or at the direction of Lessee, when made, shall
become the property of Lessor and shall remain upon and be surrendered with the Premises as a part thereof at the expiration or other termination of this lease, Lessee promptly shall reimburse Lessor for any expense or cost incurred by Lessor in
restoring the Premises to the condition in which the Premises were at the time Lessee shall have occupied the same, ordinary wear and tear, fire or other casualty not caused by Lessee, its servants, agents or employees, and alterations, additions
and improvements to the Premises consented to in writing by Lessor, excepted. Lessor shall have no obligation to make any alterations, improvements or repairs to the Premises except those required to make the Premises safe and tenantable, provide
that such repairs are not required by reason of acts of omissions of Lessee, its agents, employees, invitees, or licensees. In the event that any alterations, additions or improvements in or to the Premises, regardless of whether the same have been
made by or with the consent of Lessor, must be removed or damaged in order for Lessor properly to maintain the Building or any portion thereof, Lessor shall have the right to remove or damage the same but only to the extent necessary or proper to
carry out such maintenance and Lessor shall have no obligation to replace or repair the same and Lessee shall pay Lessor on demand all costs paid or incurred by Lessor arising out of any such removal and/or damage. Upon termination of this lease,
Lessee shall be permitted to remove any specialized banking equipment installed by Lessee provided that the removal of such equipment does not 

 
cause damage to the Premises or that any damage to the Premises caused by such removal shall be restored fully by Lessee within thirty (30) days upon the
termination of this lease. Such specialized banking equipment being vault doors, night depositories, automatic teller machines, safe deposit boxes, miscellaneous safes, teller fixtures, portable vaults, and modular vaults. 
  
 XIV. PROPERTY OF LESSEE 
  
 All property placed on the Premises by, at the direction of, or with the
consent of Lessee, its employees, agents, licensees or invitees, shall be at the risk of Lessee or the owner thereof and Lessor shall not be liable for any loss of or damage to said property resulting from any cause whatsoever unless such loss or
damage is the result of Lessor’s negligence. 
  
 XV. RULES
AND REGULATIONS 
  
 Lessee has read the Rules and Regulations
heretofore adopted by Lessor for the Building, a copy of which is attached hereto as Attachment A, and Lessee agrees to abide by and conform to the provisions of said Rules and Regulations except to the extent that same are inconsistent with the
terms and conditions of this lease, in which event the terms and conditions of this lease shall control. Lessee further agrees to abide by and conform to such further Rules and Regulations as Lessor may make or adopt from time to time for the care,
protection and benefit of the Building or for the general comfort and welfare of the lessees of any portion of the Building to the extent that such rules and regulations otherwise are consistent with the terms and conditions of this lease. Lessor
shall have the right to waive any or all of such Rules and Regulations as to any one or more lessees of any portion of the Building and such waiver shall not affect or diminish any of Lessee’s obligations pursuant to the provisions of this
lease in any way. Lessor shall have no responsibility or liability to Lessee for any nonconformance by any other lessee or lessees of any portion of the Building with any requirement of said Rules and Regulations. 
  
 XVI. LESSOR’S RIGHT OF ENTRY 
  
 Lessor shall have the right to enter and to grant licenses to others to
enter the Premises at any time and for such lengths of time as may be reasonable (a) to inspect the Premises, (b) to exhibit the Premises to prospective tenants or purchasers of the building, (c) to make alterations or repairs to the Premises or to
the Building and to store necessary materials, tools and equipment for such alterations or repairs, (d) for any purpose which Lessor shall deem necessary for the operation and maintenance of the Building and the general welfare and comfort of the
lessees of any portion of the Building, (e) to abate any condition which constitutes a violation of any covenant or provision of this lease or of the Rules and Regulations. No such entry by Lessor shall affect in any manner Lessee’s obligations
and covenants under this lease. No such entry by Lessor, which occurs during standard business hours, shall be made if such entry shall cause a disruption of Lessee’s normal business activity. 
  
 XVII. INDEMNIFICATION OF LESSOR 
  
 Lessee agrees to indemnity and defend Lessor and to save harmless Lessor,
and the lessees, licenses, invitees, agents, servants and employees of Lessor against and from any and all claims by or on behalf of any person, firm or corporation arising by reason of injury to person or property occurring on the Premises
occasioned in whole or in part by any act or omission on the part of Lessee or any employee (acting within the course and scope of employment), agent, assignee or subtenant of Lessee, or by reason of any unlawful use of the Premises or by reason of
any breach, violation or nonperformance of any covenant in this lease on the part of Lessee to be observed or performed, and also by reason of any matter or thing growing out of the occupancy or use of the Premises by Lessee or anyone holding or
claiming to hold through or under Lessee. 

 Lessor shall not be liable to Lessee for any damage by or from any negligence of any other lessee or any
portion of the Building or by any owner or occupant of adjoining or contiguous property. Further, Lessor shall not be liable to Lessee or to any person, firm or corporation claiming through or under Lessee for any injury or damage to persons or
property resulting from fire, explosions, falling plaster, steam, glass, electricity, water, rain or snow or leaks from any part of the Building or from the pipes, appliances or plumbing works or from the roof, street or subsurface or from any other
place or by dampness, unless caused by or due to the negligence of Lessor, its agents, servants or employees (acting in the course and scope of employment). Lessee shall procure and maintain throughout the term of this lease a policy of insurance,
at its sole cost and expense, insuring both Lessor and Lessee against all claims, demands, or actions arising out of or in connection with Lessee’s use or occupancy of the Premises or by the conditions of the Premises, the limits of such policy
to be in an amount not less than $5,000,000 in respect of any one accident or disaster, and in an amount not less than $500,000 in respect of property damaged or destroyed, such policy to be written by an insurance company qualified to do business
in the State of North Carolina. The policy shall name Lessor as an additional insured and shall contain a clause that the insurer will not cancel or change the insurance without first giving Lessor ten (10) days prior written notice. A copy of the
policy or a certificate of insurance shall be delivered to Lessor. 
  
 XVIII. INSURANCE AND INSURANCE RATES 
  
 Throughout the term of this lease, Lessor shall carry fire and extended coverage insurance insuring its interest in the Building and the Premises, such insurance to be written by insurance companies licensed to do business in North
Carolina. Throughout the term of this lease, Lessee shall carry such fire and extended coverage insurance as it may deem appropriate insuring its interest, if any, in improvements to or in the Premises and its interest in its office furniture,
equipment, supplies, and other property. 
  
 Lessee shall not do
or cause to be done or permit on the Premises or in the Building anything deemed extra hazardous on account of fire, and Lessee shall not use the Premises or the Building in any manner which will cause an increase in the premium rate for any
insurance in effect on the Building or any part thereof. If because of anything done, caused to be done, permitted or omitted by Lessee or its agents, servants or employees (acting in the course and scope of employment) the premium rate for any
insurance in effect on the Building or any part thereof shall be raised, Lessee shall pay Lessor on demand the amount of any such increase in premium which Lessor shall pay for such insurance and if Lessor shall demand that Lessee remedy the
condition which caused any such increase in an insurance premium rate, Lessee shall begin remedy of such condition within thirty (30) days after receipt of such demand. 
  
 XIX. FIRE OR OTHER CASUALTY 
  

In the event that before or during the term of this lease the Building shall be damaged by fire or other casualty which in the opinion of Lessor and
Lessee does not render the Premises or a part thereof unfit for its intended purpose and which shall not have been occasioned by the negligence of Lessee or of its servants or employees, Lessor (subject to the other provisions of this Section XIX)
will repair the same with reasonable dispatch upon receipt of written notice of the damage from Lessee and there shall be no abatement of the rent. 
  
 In the event that before or during the term of this lease the Building shall be damaged by fire or other casualty which in the opinion of the Lessee
renders the Premises unfit for its intended purpose and which shall not have been occasioned by the negligence of Lessee or of its servants, agents or employees, Lessor within seven (7) days of notice of such fire or casualty or of receipt of
written notice from Lessee of such damage (whichever shall occur last) shall have the right to and shall either (i) deliver written notice to Lessee of Lessor’s intent to repair said damage or (ii) if in Lessor’s opinion said damage
renders so much of either the Building or the Premises unfit for its intended purpose that repair would not 

 
be feasible, deliver written notice to Lessee that this lease is terminated; provided, however, that Lessor shall not so terminate this lease unless such
repairs cannot in Lessor’s opinion be made within a period of one hundred and eighty (180) days. If Lessor shall elect to terminate this lease as aforesaid, such termination shall be effective immediately upon delivery of such notice by Lessor
to Lessee if the term shall not have commenced or on the date specified in such notice if during the term. In the event of such termination, the Base Rent shall be apportioned and paid to the time of such fire or other casualty if the Premises is
rendered wholly unfit for its intended purpose by such fire or other casualty or to the specified date of termination if the Premises is not rendered wholly unfit for its intended purpose by such fire or other casualty; provided that the amount of
the rent shall be reduced as of the date of such fire or other casualty to an amount which bears the same ratio to the rent provided for in Sections III and IV as the portion of the Premises then available for use bears to the Area of the Premises.
Except as hereinbefore specifically provided, Lessee’s obligation to make payment of rent and all other charges on the part of Lessee to be paid and Lessee’s obligation to perform all other covenants on the part of Lessee to be performed
shall not be affected by any such fire or other casualty. Any obligation of Lessee to Lessor for any sum of money due under any provision of this lease shall survive any such termination of this lease by Lessor. If, on the other hand, Lessor shall
elect to repair such damage, such repairs shall be commenced within seven (7) days of notice to Lessee of such election and such repairs shall be completed within one hundred and twenty (120) days of notice to Lessee of such election, subject to
delays caused by strikes, fire, acts of God and other causes beyond the reasonable control of Lessor. During the period of repair, the total amount of the rent provided for in Sections III and IV of this lease shall be reduced to an amount which
bears the same ratio to the rent as the portion of the Premises then available for use bears to the Area of the Premises. Upon completion of such repair, the rent shall be paid thereafter as if no fire or other casualty had occurred. 
  
 In the event that before or during the term of this lease the Building or the
Premises shall be damaged by fire or other casualty which shall have been occasioned by the negligence of Lessee or of its servants, agents or employees (acting in the course and scope of employment), there shall be no apportionment or abatement of
the rent; and without prejudice to any other rights and remedies of Lessor and without prejudice to any rights of subrogation of any insurer of Lessor, Lessor shall have the right but shall have no obligation to repair the Building or the Premises
and Lessee shall reimburse and compensate Lessor within thirty (30) days after delivery of any statement to Lessee by Lessor for any expenditures made by Lessor in making any such repairs. Any such statement being supported by all necessary proof of
cost as is commonly used within the construction industry. 
  
 The
other provisions of this Section XIX notwithstanding, Lessor shall have no obligation to replace or repair any property in the Building or on the Premises belonging to Lessee or to anyone claiming through or under Lessee. Further, Lessor shall have
no obligation hereunder to replace or repair any property on the Premises which Lessor shall have the right to require Lessee to remove from the Premises or any alteration, addition or improvement made to the Premises by, for, or at the direction of
Lessee or any prior lessee of the Premises or any portion thereof. 
  
 Any dispute between the parties regarding any reduction in rent provided for in this Section XIX shall be determined by arbitration in accordance with Article 45A, Chapter 1 of the North Carolina General Statutes as then prevailing or as
otherwise then provided by the North Carolina General Statutes. 
  
 XX. LANDLORD’S RIGHT TO MORTGAGE 
  
 It is
agreed that the Landlords may encumber their title to the Premises with a mortgage or trust indenture without regard to the existence of this lease subject to the express condition that so long as the Tenant is not in default in the payment of any
rent or additional rent or any of the other covenants and 

 
conditions of this lease, its rights hereunder shall not be affected or terminated and its possession of the Premises shall not be disturbed by any mortgage
or Trustee or by any proceedings on the debt which any such mortgage or trust indenture secures or by any person, firm or corporation whose rights are acquired as a result of such proceedings or by virtue of any right or power contained in any such
mortgage or trust indenture or the bond or note secured thereby and that any sale at foreclosure will be subject to this lease. Tenant further agrees that it will attorn to the mortgage, Trustee or beneficiary of such mortgage or deed of trust, and
their successors or assigns, and to the purchaser or assignee under any such foreclosure. Tenant and mortgagee will, upon request by the Landlords, execute, deliver to the Landlords, or to any other person designated by the Landlords, any instrument
or instruments required to give effect to the provisions of this paragraph. 
  
 The Landlords shall furnish to the Tenant Agreements of Quiet Possession and Non-Disturbance in form suitable for registration, executed by the Trustees and holders of all mortgages and/or deeds of trust and other
encumbrances of record affecting the lands which are the subject of this lease at the time of its execution. 
  
 XXI. CONDEMNATION 
  
 In the event the whole of the Building or such part thereof which would render the Premises unfit for its intended purpose shall be taken by eminent
domain or in any manner for public use, Lessor or Lessee may terminate this lease by giving written notice of such termination and upon the giving of such written notice this lease and all rights hereunder shall expire as of the date when the right
to possession of the Building or such part thereof shall be acquired by public authority as aforesaid and any rent paid for any period beyond said date shall be repaid to Lessee. 
  
 In the event any lesser part of the Building shall be so taken, this lease and every term and provision hereof shall remain
in full force and effect unless such portion shall include a part of the Premises, whereupon this lease shall terminate as to such part of the Premises only and the remainder of this lease and every term and provision hereof shall remain in full
force and effect; provided, however, that the rent shall be reduced as of the date when the right to possession of such part of the Building shall be required by public authority as aforesaid to an amount which bears the same ratio to the rent
provided for in Sections III and IV, as the portion of the Premises then available for use bears to the Area of the Premises. 
  
 Lessee shall not be entitled to any part of any award or payment which may be paid to Lessor or made for Lessor’s benefit in connection with such
public use and Lessee shall have no claim or rights as against Lessor for the value of any unexpired term of this lease. 
  
 Any dispute between the parties regarding any reduction in rent provided for in this Section XXI shall be determined by arbitration in accordance with
Article 45A, Chapter 1 of the North Carolina General Statutes as then prevailing or as otherwise then provided by the North Carolina General Statutes. 
  
 XXII. QUIET ENJOYMENT 
  
 Lessor agrees that Lessee on paying the rent and performing all the terms and provisions of this lease shall have, hold and enjoy quietly the Premises for
the term of this lease. 

 XXIII. NOTICES 
  
 Any notice or demand which by any provisions of this lease is required or allowed to be given by either party to the other
shall be deemed to have been given sufficiently for all purposes when made in writing and sent in the United States Mail, certified or registered mail, return receipt requested, postage prepaid and addressed: 
  

					
	(a)	  	if to Lessee, to:	 	Branch Banking and Trust Company
	 	  	 	 	Post Office Box 1847
	 	  	 	 	Wilson, North Carolina 27894-1847
	 	  	 	 	Attn: Barry W. Story
			
	(b)	  	if to Lessor, to:	 	R. B. Jones
	 	  	 	 	North Hills Properties, Inc.
	 	  	 	 	Post Office Box 17004
	 	  	 	 	Raleigh, North Carolina 27619

  
 or such other address as either party
may designate in writing. 
  
 XXIV. SUCCESSORS AND ASSIGNS

  
 The provisions of this lease shall bind and inure to the
benefit of Lessor and Lessee, and their respective successors, heirs, legal representatives and assigns, it being understood and agreed, however, that the term “Lessor” as used in this lease means only the owner at any particular time of
the Land and Building of which the Premises are a part, so that in the event of any sale or sales of said property, (including, without limitation, any judicial sale, any sale in foreclosure and any sale pursuant to a power of sale contained in a
mortgage or deed of trust affecting all of any part of the Building or the Land), the Lessor named herein shall be and hereby is relieved of all covenants and obligations of Lessor hereunder and thereafter accruing; and it shall be deemed without
further agreement that the purchaser at any such sale or sales has assumed and agreed to carry out any and all covenants and obligations of Lessor hereunder during the period such purchaser is the owner of the Land and Building. Should the Land and
the entire Building be severed as to ownership by sale or as to right of possession by lease, then the owner of the entire Building or the lessee of the entire Building that has the right to lease space in the Building to tenants shall be deemed to
be the “Lessor.” Lessee shall be bound to any succeeding party Lessor for all the terms and provisions hereof and shall execute any attornment agreement not in conflict herewith at the request of any succeeding party Lessor. 
  
 XXV. SEVERABILITY 
  
 In the event that any term or provision of this lease or the application
thereof to any circumstance or situation shall be invalid or application of said term or provision to any other circumstance or situation shall not be affected thereby, and each term and provision of this lease shall be valid and enforceable to the
full extent permitted by law. 
  
 XXVI. WAIVER 

 
 The Waiver by Landlords of any breach of any covenant or agreement herein
contained shall not be deemed to be a waiver of such covenant or agreement or any subsequent breach of the same or any other covenant or agreement herein contained. The subsequent acceptance of rent hereunder by Landlords shall not be deemed to be a
waiver of any preceding breach by Tenant of any covenant or agreement of this lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of
acceptance of such rent. 

 XXVII. PARAGRAPH HEADINGS 
  
 The paragraph headings used in this lease are for the convenience of reference only and shall not be considered terms of
this lease. 
  
 XXVIII. GRAMMATICAL USAGE 
  
 Throughout this lease, references to the neuter gender shall be deemed to
include the masculine and feminine, the singular the plural, and the plural the singular as indicated by the context in which used. 
  
 XXIX. GOVERNING LAW 
  
 Lessor and Lessee agree that the internal laws of the State of North Carolina shall govern and control the validity, interpretation, performance and
enforcement of this lease. 
  
 XXX. ENTIRE AGREEMENT

  
 This lease contains the entire agreement and understanding
between Lessor and Lessee, and there are no oral understandings, terms or conditions, and neither Lessor nor Lessee has relied upon any representation, expressed or implied, not contained herein. All prior negotiations and understandings are merged
in this lease. 
  
 XXXI. MODIFICATION 
  
 This lease may not be changed or modified orally, but only by an agreement
in writing signed by the party against whom enforcement or waiver, change, modification or discharge is sought. 
  
 XXXII. SPECIAL CONDITIONS 
  
 (A) Signage: Lessee shall be permitted to place signs at the highest point permitted by state and local authorities on the elevations of the Building;
provided, however, that the costs of such signage shall be Lessee’s sole cost and expense and shall be constructed of materials, design, size and location acceptable to Lessor and in compliance with local and state ordinances. Lessor agrees
that signs will be permitted in a color which is one of the standard colors used by Lessee in its signage program. In addition, such signage shall be approved prior to erection by local, state and federal authorities having jurisdiction over such
matters. Upon termination of this lease, Lessee forthwith shall remove at its sole cost and expense all signage placed on the Building pursuant to this subparagraph. 
  
 (B) Memorandum: This lease shall not be recorded and a memorandum of lease in the usual short form shall be utilized for
recording. In the event of termination of this lease prior to the date of termination indicated in the memorandum of lease, Lessee shall make, execute and deliver to Lessor immediately upon request therefore an instrument in proper form for recorded
evidencing such termination. In the event that Lessee shall not make, execute and deliver such instrument to Lessor, Lessee shall be responsible for and hereby agrees to pay Lessor the reasonable costs and attorney fees incurred by Lessor in taking
such legal action as Lessor may determine necessary to obtain confirmation of record by judicial action or otherwise of termination of this lease as well as in enforcing collection of such costs and fees. 
  
 (C) Take Over by Bank Supervisory Authority: Notwithstanding any other
provisions contained in this lease, in the event Lessee is closed or taken over by the banking authority of the State of 

 
North Carolina, or other bank supervisory authority, Lessor may terminate this lease only with the concurrence of such banking authority or other bank
supervisory authority, and any such authority shall in any event have the election either to continue or to terminate this lease; provided, that in the event this lease is terminated, the maximum claim of Lessor for damages or indemnity for injury
resulting from the rejection or abandonment of the unexpired term of this lease shall in no event be in an amount exceeding the rent reserved under this lease, without acceleration, for the calendar year next succeeding the date of the surrender of
the Premises to Lessor, or the date of re-entry of Lessor, whichever first occurs, whether before or after the closing of Lessee, plus an amount equal to the unpaid rent accrued up to such date with acceleration. 
  
 (D) This lease is subject to approval by the Board of Directors of Lessee,
and all applicable State and Federal Regulatory Authorities. Failure of Lessee to acquire any such approvals on or before October 1, 1986, shall make this lease null and void. 
  
 IN WITNESS WHEROF, the parties hereto have executed this lease on the day and year first above written. 
  

	
	LESSOR:
	
	North Hills Properties, Inc.
	
	 /s/ James A. Walker

	Vice President

  

	
	ATTEST:
	
	 /s/ Carol ter Wee

	Secretary
	
	(Corporate Seal)

  

	
	LESSEE:
	
	Branch Banking and Trust Company
	
	 /s/ Henry G. Williamson, Jr.

	Senior Executive Vice President

  

	
	ATTEST:
	
	 /s/ illegible

	Secretary
	
	(Corporate Seal)

 STATE OF NORTH CAROLINA 
  
 COUNTY OF WAKE 
  
 I, Mary D. Pierce, a Notary Public in and for said County and State, do hereby certify that Carol ter Wee personally appeared before me this day and acknowledged that he/she is
             Secretary of North Hills Properties, a corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name
by its Vice President, sealed with its corporate seal and attested by himself as its              Secretary. 
  
 Witness my hand and official seal, this the 23rd day of July, 1986. 
  

	
	 /s/ Mary D. Pierce

	Notary Public

  
 My commission expires: 
 1/7/89 
  
 STATE OF NORTH CAROLINA 
 COUNTY OF WILSON 
  
 I, Karen S. Morris, a Notary Public in Wilson County, certify that Jerone C. Herring personally appeared before me this day and acknowledged that he is
the Secretary of Branch Banking and Trust Company, a corporation, and that by authority duly given, and as the act of the corporation, the foregoing instrument was signed in its name by its Senior Executive Vice President, sealed with its corporate
seal and attested by himself as its Secretary. 
  
 Witness my hand
and official seal, this the 22nd day of July, 1986. 
  

	
	 /s/ Karen S. Morris

	Notary Public

  
 My commission expires: 
 3/27/1989 

 EXHIBIT A 
  

BEGINNING at the point in the eastern edge of the right of way of Falls of Neuse Road where said right of way begins to curve into the right of way of Spring Forest
Road; thence a northeasterly direction with the rights of way of Falls of Neuse Road and Spring Forest Road along a curve to the right having a radius of 30 feet, an arc distance of 40.95 feet to a point in the southern edge of the right of way of
Spring Forest Road; thence with the southern edge of the right of way of Spring Forest Road North 76 degrees 56 minutes 36 seconds East 400 feet to a point; thence South 20 degrees 18 minutes East 275 feet to a point; thence South 0 degrees 28
minutes East 100.45 feet to a point; thence South 24 degrees 50 minutes 46 seconds West 100.46 feet to a point; thence South 76 degrees 56 minutes West 195 feet to a point; thence North 82 degrees 18 minutes West 272 feet to a point in the eastern
edge of the right of way of Falls of Neuse Road; thence with the Eastern edge of the right of way of Falls of Neuse Road North 1 degree 15 minutes 24 seconds West 337 feet to the POINT OF BEGINNING, containing 4.69 acres and being Phase II as shown
on a map of North Ridge Shopping Center dated July 28, 1980, revised February 17, 1981, prepared by Castleberry-Edgerton Co., Engineers. 
  
 TOGETHER with the rights and easements appurtenant to the above described land by virtue of Declaration dated March 30, 1981, executed by North Hills, Connecticut General
and Trustee, recorded in Book 2917, page 229, of the Wake County Registry. 
  
 EXCEPTING AND RESERVING, however, all rights and easements appurtenant to the land retained in said Deed of Trust (Phase I of the North Ridge Shopping Center) by virtue of said Declaration recorded in Book 2917, page 229, of the Wake County
Registry. 

 

 
  
  

 ATTACHMENT A 
  
 Rules and Regulations 
  
 1. The entrances, corridors, passages, stairways, and elevators shall be under the exclusive control of the Landlord and shall not be obstructed, nor used
by the Tenant for any purpose other than ingress and egress to and from the leased premises. 
  
 2. The Tenant shall neither place nor permit to be placed any signs, advertisements, notices in or upon any part of the building, except on the doors of the premises leased, or as approved in writing by Landlord and
all such doorway signs shall be approved by the Landlord. All signs not approved in writing by the Landlord shall be subject to removal without notice. 
  
 3. The Tenant shall not put up, nor operate, any engine, boiler, dynamo or machinery of any kind nor carry on any mechanical business in said premises,
nor place any explosive therein, nor use any kerosene, oils, or burning fluids in said premises without first obtaining the written consent of the Landlord. 
  
 4. If any Tenant shall desire an iron safe for depositing valuables and securities, the Landlord shall have the right to prescribe its weight, size and
proper position. 
  
 5. No nails are to be driven, and premises
are not to be defaced in any way, and no boring or cutting for wires or other purpose is to be done, and no change in electric fixtures or other appurtenances of premises is to be made without the written consent of Landlord. 
  
 6. If the Tenant desires telephonic or telegraphic connections, the Landlord
will direct the electricians as to where and how the wires are to be introduced, and without such written directions no boring for wires will be permitted. 
  
 7. The leased premises shall not be used for the purpose of lodging or sleeping rooms, nor in any way to damage the reputation of the building and the
Tenant shall not disturb, nor permit the disturbance of other tenants, by the use of musical instruments or any unseemly noises, nor by any interference whatever; and nothing shall be placed or permitted upon the outside window sills. 
  
 8. No person or persons, other than employees of the building, shall be
employed by the Tenant for the purpose of cleaning or taking care of said premises without the written consent of the Landlord. Any person or persons so employed by the Tenant (with the written consent of the Landlord) shall be subject to, and under
the control and direction of, the Landlord in the use of the building and its facilities. 
  
 9. The Landlord shall have the right to exclude or eject from the building animals of every kind, birds, bicycles, and all canvassers and other persons who conduct themselves in such a manner as to be, in the judgment
of the Landlord, an annoyance to the tenants or a detriment to the building. 

 SCHEDULE II 
  
 RE: EQUIPMENT/FIXTURES AT 6200 FALLS OF NEUSE 
  

					
	 1
	  	NIGHT SAFE DEPOSIT	  	1
	 2
	  	MONEY VAULT	  	1
	 3
	  	DESK TELLER VAULTS	  	7
	 4
	  	SECRETARIAL DESKS	  	4
	 5
	  	EXECUTIVE DESKS	  	8
	 6
	  	CREDENZAS	  	9
	 7
	  	EXECUTIVE FILE CABINETS	  	1
	 8
	  	WOODEN BOOK CASES	  	7
	 9
	  	TYPING CABINETS	  	2
	 10
	  	SMALL CONFERENCE TABLE	  	1
	 11
	  	TYPEWRITERS	  	3
	 12
	  	WINGBACK	  	3
	 13
	  	SIDE CHAIRS	  	16
	 14
	  	DESK CHAIRS	  	8
	 15
	  	LOCKABLE STORAGE CABINETS	  	2
	 16
	  	STORAGE CABINETS	  	1
	 17
	  	5-DRAWER LATERAL FILE CABINETS	  	6
	 18
	  	4-DRAWER LATERAL FILE CABINETS	  	4
	 19
	  	3-DRAWER LATERAL FILE CABINETS	  	1
	 20
	  	5-DRAWER STD. FILE CABINETS	  	1
	 21
	  	4-DRAWER STD. FILE CABINETS	  	1
	 22
	  	2-DRAWER STD. FILE CABINETS	  	2
	 23
	  	COPY MACHINES	  	1
	 24
	  	WOODEN END TABLE	  	1
	 25
	  	VAULT W/DOOR	  	1
	 26
	  	DRIVE UP WINDOW SYSTEM	  	1
	 27
	  	REMOTE DELIVERY SYSTEM	  	1
	 28
	  	VIDEO SURVEILLANCE	  	1
	 29
	  	ALARM SYSTEM	  	1
	 30
	  	ENTIRE TELEPHONE SYSTEM	  	1

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