Document:

Exhibit 10.3

 

THIS EMPLOYMENT AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO THE
SOUTH CAROLINA UNIFORM ARBITRATION ACT, SECTION 15-48-10 ET SEQ., AS
AMENDED.

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”)
is made as of the 17th day of April, 2008, by and between Coastal Carolina Bancshares, Inc.,
a South Carolina corporation (the “Company”), and Holly L. Schreiber (“Employee”)
to be effective as of the date hereof.  Upon the formation of the Company’s proposed
national bank association subsidiary (the “Bank”), the Bank shall become
party hereto pursuant to the provisions set forth herein.  The Company and the Bank are collectively
referred to herein as “Employer”).

 

W  I  T  N  E  S  S  E  T
H

 

WHEREAS, the Company (as successor by merger
to Coastal Carolina Dream Team, LLC) and the Employee are parties to an employment
agreement dated February 14, 2008 (the “Current Agreement”); and

 

WHEREAS, the Company and the Employee desire
to terminate the Current Agreement and replace it with this Agreement which
shall amend and restate in its entirety the Current Agreement.

 

NOW THEREFORE, in consideration of the mutual
covenants and agreements set forth herein and intending to be legally bound
hereby, the parties agree as follows:

 

1.             Termination
of Current Agreement; Position and Duties.  The Current Agreement
is hereby terminated effective as of the date hereof and amended, restated and
replaced with this Agreement.  Employer
agrees to employ Employee as the Chief Financial Officer (“CFO”) of the Company
and, effective upon the date the Bank receives its charter from the Office of
the Comptroller of the Currency (the “OCC”) of the Bank.

 

As the CFO of the Company and the Bank, Employee
will have such managerial and operational duties as directed by the President
and Chief Executive Officer (“CEO”) of the Company.  Further, Employee agrees to serve, without
additional compensation, if elected, in any other senior executive position of
the Company or the Bank that may be reasonably required of her, including as an
officer or director or both of any subsidiary or affiliate of the Company or
the Bank in accordance with Section 7 below.  The Employee, shall at all times, comply with
all laws, rules and regulations which may be applicable to the Employer.

 

Employee shall devote her full-time and best
efforts to her employment with the Employer and shall apply substantially that
degree of skill and diligence in rendering 

 

 

services to
the Employer as would be applied by a person of ordinary prudence and comparable
experience under similar circumstances. 
Notwithstanding the foregoing, Employee may devote a reasonable amount
of her time to her personal investments and to civic and charitable activities;
provided, however, Employee shall not accept any position as a director of any
unaffiliated for-profit business organization without the prior approval of the
Company’s President and CEO.

 

2.             Compensation.

 

(a)  Annual Salary.  During the Term (as defined in Section 8),
Employee shall be entitled to receive an annual base salary of $150,000 per
year (the “Annual Salary”), payable in accordance with Employer’s
instituted payroll practice, prorated for any partial employment period. The
Annual Salary may be increased from time to time by the Board of Directors of
the Bank based on recommendation by the Bank’s CEO, but shall not be decreased
without the written consent of Employee. The CEO, in making any recommendation,
shall consider Employee’s annual performance in light of the specific goals and
objectives for Employee which shall be established annually in writing, after
consultation with the CFO.

 

(b)  Stock Options.  Upon the Company receiving approval from the
appropriate governmental regulatory agencies to acquire the Bank and the Company
selling stock in its initial public stock offering, Employee shall be entitled
to receive options for 20,000 shares of Company common stock, such options to
be granted to Employee on the date the Bank opens for business pursuant to the
terms of a to-be-established stock option plan.

 

The stock option agreement, when prepared,
shall provide, among other things, that Employee’s options, as above provided,
shall be subject to a five-year vesting period with 20 percent vesting each
year.

 

(c)  Equity-Based Compensation.  In each year of employment, Employee shall be
eligible to receive appropriate awards of stock options, restricted stock
and/or other equity-based compensation under such terms and conditions as
determined by the Company’s Board of Directors, in its sole discretion.

 

3.             Fringe
Benefits, Vacation Time, Expenses and Perquisites. 
During the Term:

 

(a)  Benefit Plan Participation.  Employer anticipates it will establish and
implement appropriate benefit plans and programs that will contain such terms
and conditions as are selected by the Company’s Board of Directors, in its
discretion.  Subject thereto, Employee
shall be eligible to participate in or receive benefits under all corporate
employee benefit plans made available by Employer to its executives and key
management employees.

 

2

 

(b)  Vacation Time Allowances.  Employee shall be entitled each calendar year
to twenty (20) business days of vacation, prorated for any partial year, during
which time Employee’s compensation will continue to be paid.  Employee shall take ten (10) of the
twenty (20) vacation days consecutively each year. Unused vacation days shall
not accumulate from year to year.

 

(c)  Business Expense Reimbursement.
 Employee shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by her (in accordance with
the policies and procedures established by Employer) in performing services
hereunder, provided that Employee properly accounts therefore in accordance
with Employer policy.

 

(d)  Relocation Payments.  To facilitate Employee’s relocation to Myrtle
Beach for her employment hereunder, Employee shall be reimbursed up to $1,200
per month for her secondary housing expense, being her monthly rental expense, until
the end of three (3) months following the first date that the Bank opens
to the public for business, but no longer than the last day in December 2008.
 Additionally, Employee’s reasonable
moving expenses to relocate her furnishings to Myrtle Beach, South Carolina
shall be paid by Employer as will the real estate commission and closing costs
for the sale of Employee’s home in Charlotte, North Carolina.

 

(e)  Club Dues.  Employer will have available a membership in
the Dunes Club which Employee can utilize and Employer will pay the membership
dues.   Further, Employer will pay dues
for other approved community organizations.

 

(f)  Cell Phone.  Employer will provide Employee with a cell
phone and shall pay the monthly fees in connection therewith.

 

(g)  Health Insurance.  Employee, upon being eligible, may participate
in the Employer’s health care plan and other related benefits. Until a health
insurance group policy is available to Bank employees, Employer shall reimburse
Employee for her monthly COBRA payments that she submits to an insurance
company for continuing health insurance coverage.

 

(h)  Professional Dues.  Employer will pay the training costs,
licensing fees, and professional dues to maintain Employee’s Certified Public
Accountant designation.

 

4.             Confidential
Information and Restrictive Covenants.   Employee
acknowledges that she has performed services or will perform services hereunder
which directly affect the Employer’s business. Accordingly, the parties deem it
necessary to enter into the protective provisions set forth below, the terms
and conditions of which have been negotiated by and between the parties hereto.

 

(a)  Non-Competition.  Employee expressly covenants and agrees that
during the Term and for a period of eighteen (18) full months after termination
of her association with the Employer, for any reason other than pursuant to
subsection (d), (e), (g) or (h) of Section 9 hereof, Employee
shall not directly or indirectly, either as a principal, agent,

 

3

 

employee,
employer, stockholder, organizer, director, co-partner or in any other
individual or representative capacity whatsoever, engage in the banking and
financial services business, which includes, but is not limited to, the
commercial banking, insurance agency, wealth management, trust, savings and
loan, and mortgage banking businesses, and any other business in which the
Employer or any of its subsidiaries is engaged, or efforts to organize a
banking or other financial services business, anywhere within Horry,
Georgetown, Florence, and Williamsburg Counties in South Carolina and Brunswick
and Pender Counties in North Carolina; provided, however, that Employee shall
not be prohibited hereunder from passively investing in a business similar to
the banking and other financial business activities of the Employer or any of
its subsidiaries, if such investment is limited to less than one percent of the
capital stock or other securities of any such corporation or other entity.

 

(b)  Non-Solicitation of Employees.
 Employee agrees that, during the Term
and for a period of eighteen (18) full months thereafter she will (i) not
solicit, entice, persuade or induce any other employee of the Employer or any
of its subsidiaries to leave the employ or association of such entity, and (ii) refrain
from recruiting or hiring, or attempting to recruit or hire, directly or by
assisting others, any individual who is employed by the Employer or any of its
subsidiaries at the time of the attempted recruiting or hiring.

 

(c)  Non-Solicitation of Customers.
 Employee agrees that, during the Term
and for a period of eighteen (18) full months thereafter, she will not,
directly or indirectly, solicit any business from any of the customers of the
Employer or any of its subsidiaries, or actively seek prospective customers of
the Employer or any of its subsidiaries, with whom Employee had material direct
or indirect contact within the last twenty-four (24) months of Employee’s
association hereunder for purposes of providing products or services that are
similar to or competitive with those provided by the Employer or any of its
subsidiaries, if the Employer or any of its subsidiaries is also then still
engaged in such business.

 

5.             Unauthorized
Disclosure.  Employee
shall not, without the written consent of the Board of Directors of the Company
or the Bank, or a person authorized thereby, knowingly disclose to any person,
other than an employee of Employer or a person to whom disclosure is reasonably
necessary or appropriate in connection with the performance by Employee of her
duties hereunder or as required by law, any material confidential information
obtained by her while in the employ of Employer with respect to any of Employer’s
services, products, improvements, formulas, designs or styles, processes,
customers, methods of distribution or any business practices the disclosure of
which she knows or reasonably should know will or is likely to be damaging to
Employer; provided, however, that confidential information shall not include
any information known generally to the public (other than as a result of
unauthorized disclosure by Employee) or any information of a type not otherwise
considered confidential by persons engaged in the same business or a business
similar to that conducted by Employer.

 

4

 

The covenants contained in this Section 5
shall survive the termination of Employee’s employment hereunder for any reason
for a period of two years; provided, however, that with respect to those items of
confidential information which constitute a trade secret under applicable law,
Employee’s obligations of confidentiality and non-disclosure as set forth in this
Section 5 shall continue to survive after said two-year period to the
greatest extent permitted by applicable law. These rights of Employer are in
addition to those rights Employer has under the common law or applicable
statutes for the protection of trade secrets.

 

6.             Injunctive
Relief.  It is
understood and agreed by the parties hereto that the services to be rendered by
Employee hereunder are of a special, unique, extraordinary and intellectual
character, which gives them a peculiar value, the loss of which may not be
reasonably or adequately compensated in damages, and additionally that a breach
by Employee of the covenants set out in Sections 4 and 5 of this Agreement will
cause Employer great and irreparable injury and damage. Employee hereby
expressly agrees that Employer shall be entitled to the remedies of injunction,
specific performance and other equitable relief to prevent a breach of Section 4
or 5 of this Agreement by Employee. This provision shall not, however, be
construed as a waiver of any of the remedies which Employer may have for
damages or otherwise.

 

7.             Subsidiaries.  It is understood and agreed by the parties
hereto that, at the election and direction of Employer and without modification
of the terms and provisions hereof, Employee may also serve as an executive
officer or director or both of any one or more subsidiaries of the Company or
the Bank, when and as so determined by Employer.

 

8.             Term
of Employment.  Employee’s employment under this Agreement
shall be for a term commencing on the date hereof and ending on March 2,
2009 (the “Term”), unless sooner terminated in accordance with the provisions
of this Agreement. Thereafter, this Agreement (and the Term) will automatically
renew on March 3rd of each year for an additional 12 months unless
either party notifies the other party, in writing at least 45 days prior to the
end of the then existing Term, that Employee’s employment will terminate at the
end of the then existing Term. In the event of such notification, this
Agreement will expire at the end of the existing Term.

 

5

 

9.             Termination of Employment.

 

(a)  General;
Termination Upon Death.  Upon
termination of Employee’s employment for any reason, Employee or, in the event
of Employee’s death, Employee’s estate shall be entitled to Employee’s Annual
Salary prorated through the date of termination. Any other payments or benefits
earned by or owed to Employee hereunder at the time of termination of
employment, but not yet paid to Employee, shall be paid to Employee or her
estate at such time as is provided by the terms of the applicable Employer plan
or policy. Employee’s right to any additional payments and benefits for periods
after the date of termination of employment shall be determined in accordance
with the applicable provisions of this Section 9.

 

(b)  Termination Upon Disability of
Employee.  After Employee has
commenced employment with the Employer, Employer or Employee may terminate
Employee’s employment hereunder upon written notice to the other party if by
reason of Employee’s physical or mental impairment (a “disability”),
Employee is incapable of performing substantially all of her duties hereunder
for a period of 90 consecutive days or a total of 150 days in any 12-month
period. Upon termination for permanent and total disability as defined in Section 22(e)(3) of
the Internal Revenue Code of 1986, as amended, or any successor thereto (the “Code”),
all unvested options shall vest. If any disagreement concerning whether
Employee has suffered a “disability” (as used in this subsection (a)) occurs
between Employee and Employer, Employee (or her spouse or personal
representative if Employee is unable to communicate with reason) shall select a
physician, and Employer shall select a physician. Such physicians shall select
a third physician, and the three physicians shall then determine by majority
vote whether Employee is disabled (as used in this Section). The decision of a
majority of such physicians shall be binding on Employer and Employee.

 

(c)  Termination of Employee for
Cause.  The occurrence of any of the
following events or circumstances shall constitute “Cause” for the termination,
at the election of Employer, of the employment of Employee under this
Agreement:

 

 

(i)  conduct
by Employee, or as a result of Employee’s direction, of a willful act
(including, without limitation, a dishonest or fraudulent act) or a grossly negligent
act, or the willful or grossly negligent omission to act, by the Employee,
which is intended to cause, causes or is reasonably likely to cause harm to the
Employer (including harm to its business reputation);

 

(ii)  the
indictment or the arrest of Employee for the commission or perpetration by the
Employee of any felony, or any act involving dishonesty, moral turpitude or
fraud;

 

(iii)  the
receipt of any form of notice, written or otherwise, that any regulatory agency
having jurisdiction over the Employer intends to institute any form of formal
or informal regulatory action against the 

 

6

 

Employee or
the Employer (provided, that the respective Board of Directors determines, in
good faith, that the subject matter of such action involves acts or omissions
by or under the supervision of the Employee or that termination of the Employee
would materially advance the Employer’s compliance with a concern prompting
such regulatory action or would materially assist the Employer or the Bank in
avoiding or reducing the restrictions or adverse affects to the Employer or the
Bank related to the regulatory action);

 

(iv) 
knowing violation by Employee of any federal or state banking or securities law
or regulation which is material to the Bank or its operations, or Employee’s
act or omission which he reasonably should have known violated any such law or
regulation;

 

(v)  Employee’s
refusal to perform a duly authorized directive of the CEO;

 

(vi)  Any
other material breach by the Employee of this Agreement that, if susceptible of
cure remains uncured for 10 days following notice to the Employee of such
breach; or

 

(vii)  Employee
exhibits a standard of behavior within the scope of her employment that is materially
disruptive to the orderly conduct of the Employer’s business operations
(including, without limitation, substance abuse or sexual misconduct) to a
level which, in good faith and the reasonable judgment of the CEO, is
detrimental to the Employer’s best interests, that if susceptible of cure
remains uncured for 10 days following written notice to the Employee of such
specific inappropriate behavior.

 

Provided, however, that with respect to the conditions described in
items (i), (iii), (iv), (v), (vi) or (vii) of the foregoing, no
termination shall be made unless the Employer has provided written or
electronic notice to Employee of the existence of such condition and Employee
has been granted a reasonable opportunity to appear before the applicable Board
of Directors in order to respond to such determination.

 

Upon the termination of Employee’s employment
under this Section 9(c), no additional benefits or monies shall be due
Employee other than those accrued or vested hereunder or under any benefit
plans of Employer as of the date of termination. In addition, in the event that
Employer terminates Employee’s employment under this Section 9(c) and
any act or omission of Employee constituting Cause results in material economic
harm to the Employer or in reputational harm causing material injury to the
Employer, then, notwithstanding anything to the contrary herein, but only to
the extent permitted by law and the provisions of the Employer’s plan or
program, as of the date of termination (i) Employer shall have no further
obligations to make any payments or provide any benefits to Employee, her
estate, or her dependents hereunder or under any compensatory or benefit plan
or arrangement of Employer, and (ii) all outstanding 

 

7

 

nonvested options
to purchase shares of the Company’s common stock granted by the Company to
Employee shall immediately expire.

 

In the event that Employer discharges
Employee under this Section 9(c) and it is subsequently determined,
pursuant to Section 10, that the termination was without cause, then such
discharge shall be deemed a discharge without Cause subject to the provisions
of Section 9(d) hereof.

 

(d)  Termination by Employer Without
Cause.  Employer may terminate
Employee’s employment hereunder at any time without Cause by written notice to
Employee, in which event Employer shall continue to pay Employee her Annual
Salary, in effect immediately prior to such termination, for an additional
twelve (12) months thereafter. Such Annual Salary shall be paid in monthly
installments unless Employer, in its discretion, determines otherwise.  In the event Employee becomes employed at any
time during the twelve (12) months, then her compensation from Employer shall
be set off by the compensation relating to Employee’s new employment.

 

(e)  Termination by Employee For Good
Reason.  In the event Employee
terminates her employment for Good Reason, Employer shall continue to pay
Employee her Annual Salary, as in effect immediately prior to such termination
for an additional twelve (12) months.  In
the event Employee becomes employed at any time during the twelve (12) months,
then her compensation from Employer shall be set off by the compensation
relating to Employee’s new employment. 
For purposes of this Agreement, the term “Good Reason” shall mean:

 

(i)  a
substantial alteration in the nature or status of Employee’s responsibilities
which renders Employee’s position to be of materially less dignity, responsibility
or scope, other than any such alteration implemented with Employee’s consent;

 

(ii)  Employer
requiring Employee to be based anywhere other than the Company’s or the Bank’s
principal executive offices; or

 

(iii) 
any material breach by Employer of its obligations contained in this Agreement.

 

(f)  Termination by Employee Without
Good Reason.  In the event Employee
terminates her employment with Employer for any reason (including retirement)
other than Good Reason, Employee shall give Employer at least ninety (90) days
notice of Employee’s intention to terminate her employment without Good Reason,
and Employer may elect at its option and at any time to accept such termination
at a date sooner than such ninetieth day. Employee shall be entitled to all
compensation and benefits due under this Agreement through such termination
date. Thereafter no additional benefits or monies shall be due Employee, her
estate, or her dependents, other than those accrued hereunder or under any
benefit plans of Employer as of the date of termination.

 

8

 

(g)  Termination Related to
Noncommencement of Banking Operations.  Employee’s employment and her right to
compensation, salary, and/or benefits, shall cease at the earliest of (i) June 30,
2009, in the event that on such date the Company does not have a subsidiary
actively engaged in the commercial banking business; (ii) receipt of
notice from the OCC that the application to form a national bank has been
denied, or that the OCC has declined to approve any portion of this Agreement
for which the OCC’s approval is required; (iii) receipt of notice from the
FDIC that the application for deposit insurance for the Bank has been denied,
or that the FDIC has declined to approve any portion of this Agreement for
which the FDIC’s approval is required; (iv) the Company’s receipt of
notice from the Federal Reserve that its application to acquire the Bank and
become a bank holding company has been denied; or (v) receipt of notice
from the OCC or the FDIC that Employee’s employment as CFO of the Company and
the Bank is not approved.

 

(h)  Termination Related to
Securities Offering.  Employee’s
employment and Employee’s right to compensation, salary, including salary
continuation, and/or benefits shall cease, at the Company’s option, at the end
of the thirtieth (30th) day after the date that the Company receives
information, from its advisors regarding the Company’s securities offering,
that the Company is not reasonably expected to raise the needed equity, as
determined necessary by the Company’s Board of Directors by June 30, 2009
on terms acceptable to the Company.

 

(i)  Effect of Termination on Other
Positions.  If, on the date of her
termination of employment with Employer, Employee is a member of the Board of
Directors of the Company or any of its subsidiaries, or holds any other
position with the Company or any of its subsidiaries, Employee shall be deemed
to have resigned from all such positions as of the date of her termination of employment
with Employer. Employee agrees to execute such documents and take such other
actions as Employer may request to reflect such resignation.

 

(j)  Vested Rights.  Nothing herein shall be construed as obviating
any vested rights of Employee in any vested stock options or other earned
benefits obtained during her employment. 
Employee shall have no less than ninety (90) days to exercise her vested
rights unless a different time period is set forth in the applicable plan or
agreement.  Further, subject to the terms
of the applicable plan or agreement in the event of Employee’s death, her total
and permanent disability as defined in Section 22(e)(3) of the Code,
her termination with Good Reason, or her termination without Cause, all
unvested options shall vest.  In the
event of Employee’s death, Employee’s estate shall have up to twelve (12)
months to exercise Employee’s rights unless a different time period is set
forth in an applicable plan or agreement.

 

(k)  Return of Materials.  Upon termination of employment, the Employee
shall leave with the Employer all business records, contracts, calendars,
telephone lists, rolodexes, and other business materials and records, including
any electronic data and data in any other medium, relating to the Employer and its
subsidiaries, its business or customers, including all physical, electronic,
and computer copies thereof, whether or not 

 

9

 

the Employee
prepared such materials or records himself. 
Upon such termination, the Employee shall retain no copies of any such
materials.

 

(l)  Limitation on Obligation to Make
Payments.  Notwithstanding anything
herein the Employer shall not have any obligation to make any payments to the
Employee if such payments would be prohibited under 12 CFR 359.

 

10.          Arbitration.
 Except as otherwise
provided herein, in the event of any controversy, dispute or claim arising out
of, or relating to this Agreement, or the breach thereof, or arising out of any
other matter relating to Employee’s employment, the parties agree that such
controversy, dispute or claim shall be settled by arbitration, conducted in
Horry County, South Carolina, in accordance with this Section 10 and the
Commercial Arbitration Rules of the American Arbitration Association (“AAA”).
The matter shall be heard and decided, and awards rendered by a panel of three
arbitrators (the “Arbitration Panel”). The Employer and Employee shall
each select one arbitrator from the AAA National Panel of Commercial
Arbitrators (the “Commercial Panel”) and those two arbitrators shall
select a third arbitrator; provided, however, that in the event the two
arbitrators cannot agree on a third arbitrator, the AAA shall select a third
arbitrator from the Commercial Panel. The award rendered by the Arbitration
Panel shall be in writing, signed by at least two of the members of the
Arbitration Panel, and shall be based on the preponderance of the credible
evidence submitted to the Arbitration Panel and described or summarized in such
award. The award rendered by the Arbitration Panel shall be final and binding
as between the parties hereto and their heirs, executors, administrators,
successors and assigns, and judgment on the award may be entered by any court
having jurisdiction thereof. The Employer and Employee will each bear their own
costs for legal representation in any arbitration, except that the Arbitration
Panel will have the authority to award all remedies provided by applicable law,
including recovery of attorney fees when so provided by applicable law. All
arbitrators’ fees and other administrative fees in connection with any
arbitration hereunder will be allocated equally to and paid by the Employer and
Employee; provided, however, that the Arbitration Panel may require all or a
portion of such fees and expenses to be paid by Employee if the Arbitration
Panel determines that Employee’s position in the arbitration proceeding was
without merit.  Upon request of either
party, (i) the arbitrator may require that the subject arbitration
proceedings be kept confidential, and (ii) no party shall disclose or
permit the disclosure of any information produced or disclosed in the
arbitration proceedings until the award is final.  A party shall not be prevented from seeking
temporary injunctive relief before a court of competent jurisdiction in an
emergency or other urgent or exigent situation, but responsibility for
resolution of any disputes shall be appropriately transferred to the arbitrator
upon appointment in accordance with the provisions hereof.

 

11.          Miscellaneous.

 

(a)  Notices.  Any notices required or permitted to be given
under this Agreement shall be sufficient if in writing, and if personally
delivered, sent by confirmed electronic transmission, or sent by first class
certified or registered mail, postage prepaid, return receipt requested — in
the case of Employee, to her residence address as set forth in the

 

10

 

books and
records of Employer, and in the case of Employer, to the address of the Company’s
principal place of business, in care of the CEO and the Chairman of the Board
of Directors of the Company and the Bank — or to such other person or at such
other address with respect to each party as such party shall notify the other
in writing. Unless such notice provides for a later effective date, such
notices shall be deemed to be effective as of the earliest of (i) actual
receipt by the addressee, (ii) the first business day after the date of
electronic transmission thereof, or (iii) the second business day after
deposit of the same into a United States postal authority receptacle.

 

(b)  Assignment.  This
Agreement is personal and shall in no way be subject to assignment by Employee.
It shall be binding upon and shall inure to the benefit of Employer and
Employer’s successors and assigns, and its economic rights and benefits shall
inure to the benefit of Employee or
her heirs or duly constituted legal representatives.

 

(c)  Severability.  Except as noted below, should any provision of
this Agreement be declared or determined by any court of competent jurisdiction
or arbitrator to be unenforceable or invalid for any reason, the validity of
the remaining parts, terms, or provisions of this Agreement shall not be
affected thereby and the invalid or unenforceable part, term, or provision
shall be deemed not to be a part of this Agreement.

 

(d)  Reformation.  If any of the covenants or promises of this
Agreement are determined by any court of law or equity or arbitrator, with
jurisdiction over this matter, to be unreasonable or unenforceable, in whole or
in part, as written, Employee hereby consents to and affirmatively requests
that said court or arbitrator, to the extent legally permissible, reform the
covenant or promise so as to be reasonable and enforceable and that said court
or arbitrator enforce the covenant or promise as so reformed.

 

(e)  Waiver; Amendment.  No waiver in any instance by any party of any
provision of this Agreement shall be deemed a waiver by such party of such
provision in any other instance or a waiver of any other provision hereunder in
any instance.  This Agreement cannot be
amended except in writing signed by the party to be charged.

 

(f)  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of South Carolina.

 

(g)  Entire Agreement.  This Agreement contains the entire agreement
of the parties concerning the matters set forth herein, and all promises,
representations, understandings, arrangements and prior agreements regarding
the subject matter hereof, other than those set forth herein, are superseded
hereby.

 

(h)  Counterparts.  This
Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original and all of which shall constitute a single instrument.

 

(i)  Third Party Beneficiary.  The Bank is intended to be a third party
beneficiary hereunder and shall become a party hereto upon ratification by its
Board of Directors after the date the Bank receives the last regulatory
approval necessary to commence operations as a national bank association.

 

11

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

 

	
  “COMPANY”

  	
   

  
	
   

  	
   

  
	
  Coastal Carolina Bancshares, Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/Michael D. Owens

  	
   

  
	
   

  	
    Michael D. Owens

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  President and Chief Executive Officer

  	
   

  

 

 

	
  “EMPLOYEE”

  	
   

  
	
   

  	
   

  
	
  /s/ Holly L. Schreiber

  	
   

  
	
  Holly L. Schreiber

  	
   

  

 

 

Ratified by the Bank, effective this     
day of                     ,
2008.

 

	
   

  	
   

  
	
  “BANK”

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Coastal Carolina National Bank

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

12Exhibit 10.4(a)

 

	
  STATE
  OF SOUTH CAROLINA

  	
  )

  	
   

  
	
   

  	
  )

  	
  LEASE AGREEMENT

  
	
  COUNTY
  OF HORRY

  	
  )

  	
   

  

 

This Lease Agreement (“Lease”)
entered into this 13th day of November, 2007, by and between Myrtle Beach Farms Company, Inc., a South Carolina
corporation, hereinafter called the “Landlord” and Coastal
Carolina Dream Team, LLC, a South Carolina limited liability
company, hereinafter called “Tenant”.

 

WITNESSETH:

 

The
Landlord, for and in consideration of the covenants and agreements hereinafter
set forth to be kept and performed by the Tenant,  demises and leases unto the Tenant and the
Tenant does hereby rent from the Landlord the premises hereinafter specifically
set forth.

 

1.             Description of Premises:  The real estate owned by
Landlord located at 2305 N. Oak St. in the City of Myrtle Beach, South Carolina
29577, together with the existing buildings, parking lots, drive-through
facilities and other improvements thereon and all other rights, easements and
privileges appurtenant thereto, as more particularly described on Exhibit “A”
attached hereto.

 

2.             Term:  The Term of this Lease shall be for three (3) years,
beginning on November 1, 2007 and terminating, unless extended as provided
herein, on October 31, 2010.  Provided
Tenant is not in default of this Lease, the Tenant, at its option may extend
the Lease for four (4) Extension Terms of one (1) year with rent
increasing three percent (3%) over the prior Term’s Rent charge for each
Extension Term.  Tenant must notify
Landlord of its intent to exercise an Extension Option in writing no later than
ninety (90) days prior to the expiration date of the then current Term.

 

3.             Rent:  The Tenant shall pay to the Landlord Seven
Thousand and 00/100 Dollars ($7,000.00) per month, due and payable on or before
the first (1st) day of each month, beginning November 1,
2007.  The Tenant shall pay to the
Landlord Fourteen Thousand and 00/100 Dollars ($14,000.00) per month, due and
payable on or before the first (1st) day of each month, beginning May 1,
2008.  All rent payments should be mailed
to Landlord at the following payment address: 
P.O. Box 9179, Myrtle Beach, SC 
29578-9179.

 

In the event Tenant shall
exercise its first (1st) Extension Term, the Tenant shall pay to the
Landlord Fourteen Thousand Four Hundred Twenty and 00/100 Dollars ($14,420.00)
per month, due and payable on or before the first (1st) day of each
month, beginning on November 1, 2010.

 

In the event Tenant shall
exercise its second (2nd) Extension Term, the Tenant shall pay to
the Landlord Fourteen Thousand Eight Hundred Fifty-Two and 60/100 Dollars
($14,852.60) per month, due and payable on or before the first (1st)
day of each month, beginning on November 1, 2011.

 

In the event Tenant shall
exercise its third (3rd) Extension Term, the Tenant shall pay to the
Landlord Fifteen Thousand Two Hundred Ninety-Eight and 18/100 Dollars
($15,298.18) per month, due and payable on or before the first (1st)
day of each month, beginning on November 1, 2012.

 

1

 

In the event Tenant shall exercise
its fourth (4th) Extension Term, the Tenant shall pay to the
Landlord Fourteen Thousand Seven Hundred Fifty-Seven and 13/100 Dollars
($15,757.13) per month, due and payable on or before the first (1st)
day of each month, beginning on November 1, 2013.

 

4.             Security Deposit:  The
Tenant shall pay to Landlord the sum of Fourteen Thousand and 00/100 Dollars
($14,000.00) upon execution of this Lease, to be held by Landlord as a Security
Deposit.  The Security Deposit (a) shall
be retained by the Landlord as security for Tenant’s payment of the Rent and
performance of all of Tenant’s other obligations under the provisions of the
Lease; (b) shall not be deemed to represent payment of any Rent; and, (c) shall
not bear interest while retained by the Landlord.  Upon termination of this Lease, so long as
Tenant is not in default of this Lease, any portion of the Security Deposit
which is not applied or retained pursuant to past due rental charges or damages
to the Demised Premises shall be returned to the Tenant within thirty (30) days
after the expiration of the Term of this Lease. 
Landlord shall have the right to apply any part of the Security Deposit
to cure any Event of Default.  The
application of the Security Deposit shall be at the sole discretion of Landlord.  It is expressly understood that this remedy
is in addition to all other remedies vested in Landlord.

 

5.             Use of Premises:  Tenant shall be permitted to use the
Premises, in whole or in part, for office space and retail banking operations,
and for no other purpose without the prior written consent from Landlord.  The Tenant understands and acknowledges that
Tenant’s use of the Premises for the retail banking operations shall not
commence until May 9, 2008.

 

6.             Tenant Allowance:  Landlord agrees to give Tenant an allowance
toward the cost of Tenant’s upfit work within the Premises, herein after
referred to as the “Allowance”, which shall be equal to Twenty-Five Thousand
and 00/100 Dollars ($25,000.00).

 

One-half
(1/2) of the Allowance shall be paid to Tenant upon full execution of this
Lease Agreement with the balance of the Allowance being paid to Tenant upon the
date Tenant shall open the Premises to the public for business; provided,
Tenant shall have furnished Landlord with the lien waivers for work costing
Five Thousand and 00/100 Dollars ($5,000.00) or more and completion of the
improvements required to be made by Tenant and acquisition by Tenant of an
unconditional, permanent Certificate of Occupancy.

 

The lien waiver referred to in previous paragraph shall include the
execution by Tenant and each of its contractors, suppliers and materialmen and
the delivery to Landlord of a valid and enforceable waiver of lien in form and
substance satisfactory to Landlord for all work, labor, services or material
performed or furnished by, through or under such contractors, supplier or
materialman costing Five Thousand and 00/100 Dollars ($5,000.00) or more for
Tenant in respect of the Premises including such waiving party’s sworn
affidavit that all contractors, suppliers or materialmen of such waiving party
have been paid in full.

 

7.             Repairs and Maintenance:  Upon occupancy of the Premises, the Tenant
shall not cause or permit any waste, damage or injury to the Premises,
including but not limited to, the existing buildings, parking lots,
drive-through facilities and other improvements thereon.  The Tenant at its sole cost and expense shall
keep the Premises as now or hereafter constituted with all improvements made
thereto clean and in good condition, normal wear and tear excepted.

 

Tenant shall, at its cost, contract with a service company (which
Landlord, at its option, may reasonably designate or approve) for the monthly
maintenance of the heating, ventilating and air conditioning equipment serving
the Premises.  Tenant shall furnish a
copy of the service 

 

2

 

contract to Landlord within ten (10) days
after opening for business, and a copy of any subsequent contracts from time to
time during the Term.

 

Tenant shall, at its cost, retain a licensed,
bonded professional pest and termite control service (which Landlord, at its
option, may reasonably designate or approve) to perform at the minimum annual
inspections of the Premises to keep the Premises free of infestation by
insects, rodents and vermin, and shall promptly cause any corrective or
extermination work reasonably recommended by such service to be performed.  The Tenant shall provide the Landlord with a
copy of the termite and pest control contract and annual renewals of the
contract.

 

Tenant agrees to initiate and carry out a program of
regular maintenance and repair of the Premises, including the painting or
refinishing of all areas of the interior of the Premises, so as to impede, to
the extent possible, deterioration by ordinary wear and tear and to keep the safe
in attractive condition.

 

The Landlord hereby
covenants that as of the commencement date of the term of this Lease the
heating, ventilating and air conditioning equipment serving the Premises shall
be in good working order.  Landlord further covenants to provide written
proof that as of the commencement date of the Term of this Lease that the
Premises are free and clear of termites and pests.  The Landlord shall be responsible for any
structural repairs, defined as exterior walls and roof, of the Premises during
the Term, except for any damage thereto caused by any act or omission of Tenant
or its agents, employees or invitees.

 

8.             Landlord’s Right of Access:  Landlord and its agents, employees and any
person authorized by Landlord shall have the right to enter the Premises (a) at
all reasonable times, upon reasonable prior notice (except in an emergency),
for the purpose of examining or inspecting the same to ascertain if they are in
good repair, making such alterations, repairs, improvements or additions to the
Premises as Landlord may be required or permitted to make hereunder, exhibiting
the Premises to prospective purchasers and lenders and posting notices which
Landlord may deem reasonable and necessary for its protection, and (b) at
any time in an emergency.  During the six
(6) months prior to the end of the Term, Tenant shall cooperate with
Landlord in exhibiting the Premises to prospective tenants. Access by Landlord
hereunder shall not, under the circumstances, unreasonably interfere with
Tenant’s use and enjoyment of the Premises. 
Tenant waives any claim and covenants not to sue Landlord for damages
for any injury or inconvenience to or interference with Tenant’s business,
occupancy or quiet enjoyment arising out of any permitted entry by
Landlord.  Tenant acknowledges that
Landlord might not retain a key to the Premises and therefore may, in any
emergency, enter the Premises in any manner which Landlord determines to be
necessary, without liability therefor to Tenant.  No entry pursuant to this Section shall
be deemed to constitute an eviction of Tenant or a forcible detainer of the
Premises.

 

9.             Utilities:  Tenant shall pay, from the date of delivery
of the Premises through the expiration of the Term (and, without implying that
a holdover is permitted, through any holdover), all charges for gas, water,
sewer, rubbish removal, electricity, telephone and other utility services used
in the Premises.  If any such charges are
not paid when due, Landlord may pay the same, and any amount so paid by
Landlord shall thereupon become due to Landlord from Tenant as additional
Rent.  Upon delivery of the Premises,
Tenant shall cause all utility services that are separately metered to the
Premises to be billed directly to Tenant, and Tenant shall pay such charges
directly to the purveyor(s) of such services.

 

3

 

10.           Taxes:  Tenant covenants and agrees to reimburse
Landlord the full amount of all taxes assessed against the Premises, including
all improvements thereon.  Landlord shall
send an invoice to Tenant for the amount of taxes due and payable each year
during the Term and Tenant shall remit payment to Landlord upon receipt of said
tax invoice from Landlord.  Tenant also
agrees to pay directly to the various taxing authorities any and all taxes
attributable to Tenant’s furniture, fixtures and improvements that may exist on
the Premises during the term of this Lease. 
It is further understood that Tenant shall pay any and all documentary
stamp taxes or other tax assessed by the South Carolina Tax Commission, or
other taxing authorities, upon the within Lease by reason of its execution
and/or recording or otherwise.

 

Tenant’s obligation for tax
payments hereunder shall survive the expiration of the Lease term or earlier
termination hereof and, in such event, Tenant shall pay sums due pursuant to
this Section 10 to Landlord upon demand.

 

11.           Insurance:  At all times after the effective date hereof,
Tenant shall maintain in force or cause to be maintained at its expense worker’s
compensation and employer’s liability insurance as required by law.  The employer’s liability section shall
provide $500,000.00 of coverage.  Tenant
shall also maintain at all times policies of insurance against public liability
and property damage, including, without limitation, commercial general
liability, employee’s vehicle liability coverages, and insurance against
assumed or contractual liability under this Lease (collectively the “Tenant’s
Liability Insurance”) specifically naming the Landlord, as an additional
insured, in an amount of not less than One Million Dollars ($1,000,000.00) for
any one occurrence and Two Million Dollars ($2,000,000.00) as a policy year
general aggregate, with a commercially reasonable deductible.  Tenant shall also maintain in full force all
risk property damage insurance and a standard extended coverage endorsement
issued by one or more insurance carriers covering the Premises, including the
Building, to the extent of their full replacement value.  Said insurance shall not be subject to
cancellation except after at least thirty (30) days prior written notice to
Landlord, and the policy or policies, or duly executed certificate or
certificates for the same, together with satisfactory evidence of the payment
of the premium thereon, shall be deposited with Landlord at the commencement of
the term and renewals thereof not less than thirty (30) days prior to the
expiration of the term of such coverage and shall contain, in addition to the
matters customarily set forth in such a certificate under standard insurance
industry practices, an undertaking by the insurer to give Landlord not less
than thirty (30) days written notice of any cancellation of change in scope or
amount of coverage of such policy.  If
Tenant fails to comply with such requirements, Landlord may obtain such
insurance and keep the same in effect, and Tenant shall pay the Landlord the
premium cost thereof upon demand.

 

12.           Compliance with Applicable
Laws:  The Tenant at its sole cost
and expense shall comply with all laws, orders and regulations of all federal,
state, county and city authorities during the Term of this Lease.

 

13.           Leasehold Improvements:  The Tenant shall not have the right to make
any alterations, improvements, remodeling or additions to either the interior
or exterior of the Premises or to fixtures installed therein, or paint, drill
or in any way deface any portion of the Premises without the prior written
consent of the Landlord.  In the event
that Tenant shall request approval in writing from Landlord for alterations or
improvements to the Premises, Tenant shall submit a complete set of proposed
plans and specifications to: Tenant Coordinator, Myrtle Beach Farms Company, Inc.,
2411 N. Oak St., Suite 402, P.O. Box 2095, Myrtle Beach, SC
29578-2095.  Tenant shall engage an
architect (“Tenant’s Architect”) registered and licensed to do business in 

 

4

 

the
State where the Project is located to prepare the Working Drawings and
Specifications to be submitted for Landlord’s approval.  The fees for Tenant’s Architect shall be paid
by the Tenant.

 

14.           Signage:  Tenant shall submit all plans and
specifications for all proposed signage on or about the Premises to Landlord
for approval, prior to installation of said signage.  Tenant shall fully comply with all applicable
requirements of all jurisdictional regulatory requirements pertaining to
signage and signage installation, including but not limited to the Sign
Ordinance of the municipality where the project is located.

 

15.           Build-To-Suit:  Landlord agrees to grant Tenant a one-time
first right of refusal on or before the end of the third (3rd) year of
the Initial Term of this Lease for a build-to-suit building to be located off
48th Avenue N. in Myrtle Beach, as set forth on Exhibit “B”
attached hereto.   In the event Tenant
does not exercise said one-time first right of refusal by the end of the third
(3rd) year of the Initial Term of this Lease, the first right of
refusal on said build-to-suit location shall be null and void.

 

16.           Surrender of Premises:  The Tenant shall on the last day of the Term,
or upon the sooner termination of the Term, peaceably and quietly surrender the
Premises to the Landlord, in as good condition and repair as at the
commencement of this Lease, with the natural wear and tear thereof expected.

 

17.           Condemnation:  If the whole of the Premises, or such portion
thereof as will make the Premises unsuitable for the purposes herein, is
condemned for any public use or purpose by any legally constituted authority,
then in either of such events this Lease shall terminate effective with the
time when possession is taken by such public authority and rental shall be
accounted for between the Landlord and the Tenant as of the date of the
surrender of possession.  Such
termination shall be without prejudice to the rights of either of the Landlord
or the Tenant to recover compensation from the condemning authority for any
loss or damage caused by such condemnation. 
Neither the Landlord nor the Tenant shall have any rights in or to any
award made to the other by the condemning authority.

 

18.           Damage or Destruction of
Premises:  Any damage
in the Premises caused by or arising from the acts or omissions of Tenant or
Tenant’s agents, Tenant’s business, or the installation or removal of property
in or from the Premises, shall be repaired at Tenant’s expense.  Damage to Landlord’s roof, the exterior of
Landlord’s building, or any other building component that carries a warranty
from Landlords contractor, will be repaired by the Landlord at Tenant’s expense,
less warranty claims paid by contractor. 
All other damage shall be promptly repaired by Tenant at its expense
upon written notification from the Landlord. If Tenant shall fail to commence
such repairs within five (5) days after notice to do so from Landlord,
Landlord may make or cause the same to be made and Tenant agrees to pay to
Landlord promptly upon Landlord’s demand, as additional Rent.  Repairs undertaken by Landlord pursuant to
this Section will be performed by Landlord at Tenant’s expense.  Landlord reserves the right, in its sole
discretion to (i) charge the cost to Tenant as Additional Rent; or (ii) invoice
Tenant for such cost which Tenant shall pay to Landlord within thirty (30) days
from receipt of said invoice.

 

In the event that more than
fifty percent (50%) of the Premises are damaged or destroyed by fire or other
casualty, Landlord may at its option cancel and terminate this Lease by giving
notice to Tenant of Landlord’s election to do so within sixty (60) days after
the date of occurrence of such damage, in which event this Lease shall
terminate on the date such notice is given to Tenant.  In the event the Lease is terminated pursuant
to this Section 18, both parties shall be relieved of all obligations
under this Lease except for those obligations which are 

 

5

 

intended to survive the
termination of this Lease and except those obligations accruing prior to such
termination.

 

19.           Holding Over:  At any expiration or cancellation of this
Lease, should Tenant hold over for any reason, it is hereby agreed that, in the
absence of a written agreement to the contrary, tenancy shall commence on a
month to month basis.  During any
Holdover period, Tenant shall pay to Landlord monthly Rent in the same amount
that was paid prior to the expiration of said Term.  If this Lease reverts to a month to month
agreement upon the expiration of the Term, then a thirty (30) day written
notice by either party would be required to terminate this agreement.  Upon expiration of the thirty (30) day
period, the Tenant agrees to vacate the Premises.  All other terms and conditions contained in
this Lease would remain in effect during the month to month tenancy agreement.

 

20.           Default:  If Tenant shall fail or neglect to pay any
amount of rent or additional rent when the same is due and payable pursuant to
this Lease, Landlord shall deliver to Tenant at the Premises or other notice
address as set forth herein a written notice of monetary default.  Tenant shall have a period of ten (10) days
after said notice from Landlord in which to cure the monetary default.

 

In the event Tenant shall fail to perform or
comply with any of the terms and conditions contained in this Lease, with the
exception of the payment of rents, Landlord shall deliver to Tenant at the
Premises or other notice address as set forth herein a written notice of
default.  Tenant shall have a period of
thirty (30) days after said notice from Landlord in which to cure said default.

 

The Tenant expressly agrees to pay to the
Landlord all costs and expenses including attorney’s fees, incurred in
procuring a late rental payment or enforcing any other default under this
Lease.

 

The Landlord expressly agrees to pay to the
Tenant all costs and expenses including attorney’s fees, incurred as a result
of any Landlord default under this Lease.

 

21.           Late Charge:  In the event Tenant shall fail
to make any Rent payment on the due date, a late charge of  the greater of (a) five percent (5%) of the
monthly Rent or (b) one hundred dollars ($100.00) shall be paid by Tenant as
Additional Rent hereunder for each such late payment.   Should the delinquency continue for more
than thirty (30) days, Tenant shall pay a late charge of one and one-half (11⁄2)
percent per month compounded monthly, and the same shall be treated as
Additional Rent.

 

22.           Notices:  Any notice under this Lease must be in
writing and must be sent by certified or overnight mail to the last address of
the party to whom the notice is to be given, as designated by such party in
writing.  The Landlord here designates
its address and telephone number as follows: 
Attn:  Lease Administration, 2411
N. Oak Street, Suite 402, Myrtle Beach, SC 
29577, (843) 448-5123.  The Tenant
hereby designates its address and telephone number as follows:  1800 Husted Road, Suite D, Conway,
SC  29526, (843) 234-2930.

 

23.           Declaration of Governing Law:  This Lease shall be governed by, construed,
and enforced in accordance with the laws of the State of South Carolina.

 

24.           Binding Effect:  The covenants, terms, conditions, provisions,
and undertakings in this Lease or in any renewals thereof shall extend to and
be binding upon the heirs, executors, 

 

6

 

administrators,
successors and assigns of the respective parties hereto, as if they were in
every case named and expressed, and shall be construed as covenants running
with the land; and wherever reference is made to either of the parties hereto,
it shall be held to include and apply also to the executors, administrators,
successors and assigns of such party, as if in each and every case so
expressed.

 

25.           Entire Agreement;
Modification; Severability:  This Lease contains the entire agreement
between the parties and shall not be modified in any manner except by an
instrument in writing executed by the parties. 
If any term or provision of this Lease or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, to
the remainder of this Lease, or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term and provision of
this Lease shall be valid and shall be enforced to the fullest extent permitted
by law.

 

26.           Indemnification:  Tenant shall defend, indemnify and hold
harmless the Landlord from and against any and all claims, actions, lawsuits,
damages, liability and expense (including, without limitation, reasonable
attorneys’ fees) arising from: (i) the act, neglect, fault, or omission to
meet the standards imposed by any duty with respect to loss, damage or injury
by Tenant, its agents, servants, employees, contractors, customers or invitees;
(ii) the conduct or management of any work or thing whatsoever done by
Tenant in or about the Premises or from transactions of Tenant concerning the
Premises; (iii) Tenant’s failure to comply with any and all Laws
applicable to the use of the Premises and its occupancy as required in this
Lease; or (iv) any breach or default by Tenant in the performance of any
covenant or agreement pursuant to this Lease.

 

Landlord
shall defend, indemnify and hold harmless the Tenant from and against any and
all claims, actions, lawsuits, damages, liability and expense (including,
without limitation, reasonable attorneys’ fees) arising from: (i) the act,
neglect, fault, or omission to meet the standards imposed by any duty with
respect to loss, damage or injury by Landlord, its agents, servants, employees,
contractors, customers or invitees; (ii) the conduct or management of any
work or thing whatsoever done by Landlord in or about the Premises or from
transactions of Landlord concerning the Premises; (iii) Landlord’s failure
to comply with any and all Laws applicable to the use of the Premises and its
ownership as required in this Lease; or (iv) any breach or default by
Landlord in the performance of any covenant or agreement pursuant to this
Lease.

 

27.           Assignment and Subletting:  Upon written notice to Landlord, Tenant shall
have the right to assign or sublease this Lease to a wholly owned affiliate of
Tenant, without the consent of the Landlord. 
Tenant may not assign or sublease this Lease to any other party without
the prior written consent of Landlord. 
Upon any assignment of this Lease, Tenant shall remain liable for the
full performance of all terms, covenants and conditions of this Lease unless
Landlord expressly agrees to release Tenant in writing.

 

28            Memorandum of Lease.  Lessor and Lessee will, upon the written
request of either at any time, join in the execution of a memorandum of lease
in proper form for recordation in Horry County, the fees and expenses of such
recordation to be borne by Lessee.

 

[Signature
Page to Follow]

 

7

 

IN WITNESS WHEREOF, the Landlord and Tenant
subscribed their names and affixed their seals the day and year first above
written.

 

 

	
  WITNESSES:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Myrtle
  Beach Farms Company, Inc.

  
	
   

  	
   

  	
   

  
	
    /s/
  Susan Grose

  	
   

  	
  By:

  	
    /s/
  Andrew C. Tilmont

  
	
   

  	
   

  	
   

  	
   

  
	
    /s/
  Melissa Allen Felix

  	
   

  	
  Its:

  	
    Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  Name:

  	
    Andrew
  C. Tilmont

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
    /s/
  Franklin J. Long

  
	
   

  	
   

  	
   

  	
        Franklin
  J. Long, Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Coastal
  Carolina Dream Team, LLC

  
	
   

  	
   

  	
   

  
	
    /s/
  Stephen Anderson

  	
   

  	
  By:

  	
    /s/
  William K. Bogache

  
	
   

  	
   

  	
   

  	
   

  
	
    /s/
  Sheryl Williams

  	
   

  	
  Its:

  	
    Vice
  Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  Name:

  	
    William
  K. Bogache

  
								

 

8

 

Exhibit “A”

 

Description
of Premises

 

All that certain piece, parcel or tract of land and any improvements
thereon situate lying and being in the County of Horry, State of South
Carolina, consisting of approximately 1.29 Acres +/- bearing Horry County Tax
Map #: 181-03-39-005.

 

9

 

Exhibit “B”

 

Build-to-Suit Site Plan

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]