Document:

EXHIBIT 10.41 

	STATE OF SOUTH CAROLINA 	) 	  
	 	) 	SUBLEASE AGREEMENT 
	COUNTY OF ANDERSON	) 	  

 
        THIS
SUBLEASE AGREEMENT (this “Sublease”) is made and entered into this
6th day of May, 2002, to be effective as of May 1, 2002, by and among Carolina
First Bank, a South Carolina banking corporation (“Lessee”), and
CapitalBank, a South Carolina banking corporation (“Sublessee”). 

 
        WHEREAS,
Harmon W. Geiger, Jr. (“Geiger”),  as lessor, and Lessee entered into that
certain  Indenture  of Lease dated  September  15, 1992 (the  “Lease”),  with
respect to that  certain  premises  located  at  1722  North  Main  Street,  Anderson,
South  Carolina  (the  “Premises”); 

 
        WHEREAS,
Robert  T.  Harrison  Family  Trust  and Olive S.  Harrison  Family  Trust  (collectively
the “Lessor”) acquired Geiger’s interest, in the Lease on March 7, 1997; and 

 
        WHEREAS,
Sublessee desires to sublease from Lessee, and Lessee desires to sublease to Sublessee,
the Premises pursuant to the terms and conditions set forth herein. 

 
        NOW
THEREFORE, in consideration of the mutual covenants herein contained, the sum of $5.00,
and other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the Lessee and Sublessee agree as follows. 

	1.  	 BASIC
LEASE PROVISIONS. 

	 	A.  	 Property
Address:  1722  North  Main  Street,  Anderson,  South  Carolina. 

	 	B.  	 Sublessee’s
Address  (for  notices):  CapitalBank,  P.O. Box 218,  Greenwood, South Carolina 29648
Attn.  R. Wesley Brewer 

	 	C.  	 Lessee’s
Address (for notices):  Carolina First Bank, Mail Code SC  968-49,  151 Corley  Mill
Road,  Lexington,  SC 29072  Attn.  Gary  Bruce Thomas. 

	 	E.  	 Lessor:
Robert T.  Harrison  Family  Trust and Olive S.  Harrison  Family Trust. 

	 	F.  	 Lessor’s
Address (for notices):  P.O. Box 2940, Greenville,  South  Carolina 29602 Attn.  Robert
T. Harrison, Trustee. 

	 	G.  	Identification
of Lease and all amendments thereto: Indenture of Lease dated September 15, 1992, by  and
between Harmon W. Geiger, Jr. as lessor and Lessee, a copy of which is attached  hereto  

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	 	as
Exhibit A and incorporated herein by reference. The lease was acquired by Lessor
on March 7, 1997. 

	 	H.  	 Sublease
Term:  The term of this Sublease shall commence at 12:01  am on May 1, 2002  (the
“Commencement  Date”)  and end at noon on  September 15, 2004 (the
“Expiration Date”). 

	 	I.  	 Sublease
Rent Paid to:  Carolina First Bank, as Lessee. 

	 	J.  	 Address
for  Payment of Rent:  Carolina  First Bank,  Mail Code SC  986-49, 151 Corley Mill Road,
Lexington, SC 29072. 

	 	K.  	 Description
of  Premises:  All that  certain  real  property  and  improvements located thereon at
1722 Main Street,  Anderson, South  Carolina. 

2. LEASE. Lessee is
the tenant under a Lease (the “Lease”) with the Lessor identified in
Section 1(D), bearing the date specified in Section
1(F). Lessee represents and warrants to Sublessee that (a) Lessee has
delivered to Sublessee a full and complete copy of the Lease and all other agreements
between Lessor and Lessee governing the use and occupancy of the Premises, (b) the Lease
is as of the date hereof, and shall be as of the Commencement Date, in full force and
effect, and (c) no event of default has occurred under the Lease and, to Lessee’s
knowledge, no event has occurred and is continuing which would constitute an event of
default but for the requirement of the giving of notice and/or the expiration of the
period of time to cure. 

3. SUBLEASE.
Lessee, for and in consideration of the rents herein reserved and of the covenants
and agreements herein contained on the part of the Sublessee to be performed, hereby
subleases to the Sublessee, and the Sublessee accepts from the Lessee, all that
certain Premises certain space described in Section 1(J). 

4.  TERM.  The  term
of  this  Sublease  (hereinafter  “Term”)  shall  commence  on the
Commencement  Date and shall expire on the  Expiration  Date,  unless  sooner  terminated
as  otherwise provided elsewhere in the Sublease. 

5. POSSESSION. Lessee
agrees to allow Sublessee to take “possession” of the Premises to begin its
improvements on May 1, 2002, provided such improvements are in compliance with (a)
applicable building codes, permits and regulations and (b) the Lease, including any
required prior approvals from the Lessor. 

6. SUBLESSEE’S
USE. The Premises shall be used and occupied only for lawful purpose and in compliance
with the Lease. Lessee acknowledges and agrees that during the Term Sublessee shall have
use of that certain break room table and seating, chandelier and window treatments which
are presently located on the Premises. 

7. RENT. Beginning on
the Commencement Date, Sublessee agrees to pay the Base Rent (as defined below) to the
Payee specified in Section 1(H), at the address specified in  Section
1(I), or to such other payee or at such other address as may  be
designated by  

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notice in writing
from Lessee to Sublessee, without prior demand  therefore. The parties hereto hereby
agree that Lessee is responsible for all rents paid  to Lessor under the Lease. During
the Term, Base Rent shall be paid by Sublessee in  advance on or before the first day of
the month as follows: 

	 	(a)
For the period beginning May 1, 2002 and ending June 30, 2002, the Sublessee shall pay no
Base Rent. 

	 	(b)
For the period beginning July 1, 2002 and ending December 31, 2002, the Sublessee shall
pay the sum of Two Thousand Four Hundred and No/100 Dollars ($2,400.00) per month; 

	 	(c)
For the period beginning January 1, 2003 and ending August 31, 2004, the Sublessee shall
pay the sum of Three Thousand and No/100 Dollars ($3,000.00) per month; and 

	 	(d)
For the partial month beginning September 1, 2004 and ending September 15, 2004, Sublessee
shall pay the sum of One Thousand Five Hundred and No/100 Dollars ($1,500.00). 

8.  ADDITIONAL  RENT.
Sublessee  shall pay as additional  rent  throughout  the Term of  this Sublease, the
following expenses: 

 
        A.
Real Estate Taxes. All taxes and assessments of every kind or nature which are now
or may hereafter be imposed or assessed upon the Premises by federal, state, or local
government authority. Such items shall be prorated for the calendar year 2002 with the
Sublessee responsible for such taxes and assessments for the period during the Term of
this Sublease, and Lessee responsible for such taxes and assessments for the period prior
to the Commencement Date of this Sublease. Such items shall also be prorated for the
periods outstanding at the termination of the Term. During the Term, Sublessee shall make
such taxes and assessment payments directly to the Lessee within thirty (30) days after
receipt by Sublessee from Lessee of a copy of each such tax notice. 

 
        B.
Utilities. All charges for air conditioning, heat, water, sewer, janitorial
services, garbage collection, security, gas, electricity, lights, telephone, or any other
communication or utility service used in or rendered or supplied to the Premises during
the Term. Such items shall be prorated for the calendar year 2002 with the Sublessee
responsible for such amounts for the period during the Term of this Sublease, and Lessee
responsible for such items for the period prior to the Commencement Date of this Sublease.
Such items shall also be prorated for the periods outstanding at the termination of the
Term. During the Term, the Sublessee shall make such payments directly to the service
provider. Prorations of such amounts at the commencement of this Sublease, as set forth
above, shall be based upon bills for the immediately prior period unless actual amounts
can be determined. Upon receipt of the actual bill for such period, the party receiving
such bill shall promptly forward same to the other party and Sublessee and Lessee shall
then make such adjustment and payment as shall be required to make such proration
accurate. 

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9. HAZARDOUS SUBSTANCE
REMEDIATION. As of the Commencement Date, Lessee, at Lessee’s sole cost and expense,
shall empty and seal in compliance with all applicable laws, all underground storage tanks
located on the Premises, if any. Notwithstanding anything contained herein to the
contrary, Sublessee shall not be required to remediate, purge or remove, or bear the cost
of such remediation, purge or removal of, any hazardous substance which contaminated the
Premises prior to Sublessee taking possession of the Premises or which existed prior to
Sublessee taking possession of the Premises and worsened through no fault of Sublessee
thereafter. In addition, Sublessee shall not be obligated to take actions to prevent such
worsening of contamination which existed prior to Sublessee taking possession of the
Premises. Lessee shall indemnify Sublessee and hold Sublessee harmless from any and all
liability, claim, injury, damage, penalty, or cost, (including reasonable attorney’s
fees) arising out of third party claims or assertions resulting from any hazardous
substances existing on the Premises as of the Sublessee taking possession of the Premises.
Sublessee shall indemnify Lessee and hold Lessee harmless from any and all liability,
claim, injury, damage, penalty, or cost, (including reasonable attorney’s fees)
arising out of third party claims or assertions resulting from any hazardous substances
which contaminates the Premises after the Sublessee takes possession of the Premises and
which directly results from the negligent or intentional acts or omissions of the
Sublessee. 

10. AMERICANS WITH
DISABILITIES ACT. Subject to the forgoing, Sublessee, at Sublessee’s sole cost and
expense, during the Term shall make any required improvements to the Premises which are
mandated for the Premises to be in material compliance with the Americans With
Disabilities Act (the “Act”) for Sublessee’s continued use of the Premise
as a bank branch. Lessee agrees to immediately notify Sublessee if they become aware of a
known or suspected violation of the Act. 

11.  ALTERATIONS.
Sublessee  shall not make, or suffer to be made,  any  alterations or  improvements
(collectively  referred herein as “improvements”) of the Premises,  or any part
thereof,  without  the  written  consent  of (i)  the  Lessee,  which  consent  shall
not be  unreasonably withheld, and (ii) the Lessor if required by the Lease. 

12.  SIGNS AND
PARKING.  Sublessee  shall have the right to use the  parking  area which  is part of the
Premises.  Sublessee,  at its  discretion,  may erect  such signs as it deems  necessary
or  appropriate,  so long as the same  comply  with  applicable  laws  and  zoning
restrictions and the Lease. 

13. QUIET ENJOYMENT.
Lessee represents that it has full power and authority to enter into this Sublease,
subject to the consent of the Lessor as indicated below. So long as Sublessee is not in
default in the performance of its covenants and agreements in this Sublease or the Lease,
Sublessee’s quiet and peaceable enjoyment of the Premises shall not be disturbed or
interfered with by Lessee, or by any person claiming by, through, or under Lessee or under
Lessor pursuant to the terms of the Lease. 

14. SUBLESSEE’S
INSURANCE. During the Term, Sublessee shall procure and maintain, at its own cost and
expense, such liability insurance and other insurance as is required to be carried by
Lessee under the Lease, naming Lessee, as well as Lessor as  

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(additional)
insureds, in the  manner required therein and such property insurance as is required to
be carried by Lessee  under the Lease to the extent such property insurance pertains to
the Premises. The  property and casualty insurance shall be in an amount equal to the
full replacement value  of the Premises. Sublessee shall furnish to Lessee and Lessor a
certificate of  Sublessee’s insurance required hereunder prior to Sublessee’s
taking possession  of the Premises and the insurance company shall be instructed to give
Lessee at least  thirty (30) days prior notice for cancellation of the insurance. 

15. ASSIGNMENT OR
SUBLETTING. Sublessee shall not assign this Sublease or sublet the Premises or any part
thereof, without the written consent of the (i) Lessee, which shall not be unreasonably
withheld provided Sublessee remains liable under this Sublease despite such assignment or
sublease, and (ii) Lessor if required by the Lease. 

16.  REPAIRS. 

 
        a)
Lessee hereby represents and warrants that as of the Commencement Date, the Premises and
improvements thereon are structurally sound and in good repair. 

 
        b)
In accordance with the terms of the Lease, Lessee, subject to the Sublessee Repairs
described below, shall, at its own expense, make all (i) necessary repairs and replacement
to the exterior walls; pavements, curbs and parking lots; doors and windows; roof
replacements and repairs in excess of $1,000 per incident and which are not otherwise
covered by Sublessee’s insurance; electrical systems; HVAC replacements and repairs
in excess of $1,000 per incident and which are not otherwise covered by Sublessee’s
insurance; and/or structure of the Premises; (ii) all necessary repairs to make the
Premises and improvements thereon structurally sound and in good repair; (iii) repairs or
replacements resulting from termite infestation or damage; and (iv) all necessary repairs
to the Premises and improvements thereon to repair any damage caused by Lessee or its
agent (collectively the “Lessee Repairs”). Such Lessee Repairs shall be made
within a reasonable time after written notice from Lessor and/or Sublessee. 

 
        c)
Notwithstanding anything contained herein, Lessee, at Lessee’s sole cost and expense,
shall complete the following repairs to the Premises on or before the Commencement Date,
to Sublessee’s reasonable satisfaction (i) replace two toilet seats and clean all
toilet bowls, (ii) replace hot water heater, (iii) repair any termite damage, if any, (iv)
remove squirrels and other rodents, if any, living in attic, and (v) repair sink in break
room as needed, secure handles and panels on stove in the break room, and make stove so
that it will not operate. 

 
        d)
Notwithstanding anything contained herein, Sublessee, at Sublessee’s sole cost and
expense, shall complete the following repairs to the Premises on or about the
Commencement  Date, to Lessee’s reasonable satisfaction (i) level handicap ramp at
the front of the  Premises by putting a top coat of concrete over the existing concrete,
and move one gutter  down drain, (ii) remove trash and broke furniture from attic and
perform general cleaning  of entire Premise, (iii) kill grass and weeds growing in the
cracks in the asphalt, (iv)  repair sheetrock and lights over teller line, including
replacing plastic light cover, (v)  replace three broken and cracked windows, (vi) secure
wrought iron handrail  

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on back  entrance and
move one down spout, (vii) trim over-growth, remove dead plants by side  entrance and
replace with gravel or similar material, and remove dead scrubs and debris  from yard,
and (viii) paint over ceiling stains and where ceiling paint is peeling.  

 
        e)
Subject to the foregoing and Sections 9 and 10 hereof, Sublessee shall, at its own
expense, during the Term, be responsible for (i) all permanent, non-removable improvements
or additions made by Sublessee, (ii) all interior paint, redecoration and renovation,
subject to normal wear and tear, (iii) grass and landscaping as same become necessary and
are required to maintain the Premises in good appearance, (iv) keep sidewalks and
personnel entranceways free from obstruction of all nature, properly swept, and snow and
ice removed therefrom, (v) all necessary repairs to the Premises and improvements thereon
to repair any damage caused by Sublessee or its agents, all subject to normal wear and
tear for the uses permitted herein, (vi) plumbing, (vii) all repairs to the roof which do
not exceed $1,000 per incident or which are otherwise covered by Sublessee’s
insurance, (viii) HVAC repairs which do not exceed $1,000 per incident or which are
otherwise covered by Sublessee’s insurance, (ix) repairs to trench in parking lot to
remove standing water, (x) repairs to teller counter, (xi) seal inside wall where night
drop or ATM was removed, (xii) repairs to teller pneumatic system, (xiii) clean carpets,
and (xiv) repairs to outside lighting (collectively the “Sublessee Repairs”).
During the Term, Sublessee shall maintain a HVAC system service contract, which is
reasonably satisfactory to Lessee. 

 
        f)
For purposes to this Section 16, the terms “repair” and
“replacement” include the replacement of any portions of the Premises which have
outlived their useful life during the term of the Sublease. On behalf of Sublessee in
making Sublessee Repairs, Lessee may, but shall not be required to, make such repairs and
replacements for Sublessee’s account, and the expense thereof shall constitute and be
collectible as additional rent. On default of Lessee in making any Lessee Repairs,
Sublessee may, but shall not be required to, make such repairs and replacements for
Lessee’s account, and in which case Sublessee may elect that the amount of such
repair expenses be either (i) deducted by Sublessee from the rent hereunder after notice
of such payment is given by Sublessee to Lessee, or (ii) reimbursed to Sublessee by Lessee
within ten (10) days after notice of such payment is given by Sublessee to Lessee. All
repairs and replacements as described in this Section 16 shall be made promptly, as
and when necessary. 

17. FIRE OR CASUALTY
OR EMINENT DOMAIN. In the event of a fire or other casualty affecting the Premises, or of
a taking of all or a part of the Premises under the power of eminent domain, Lessee shall
not exercise any right which may have the effect of terminating the Lease without first
obtaining the prior written consent of Sublessee. In the event Lessee is entitled, under
the Lease, to a rent abatement as a result of a fire or other casualty or as a result of a
taking under the power of eminent domain, then Sublessee shall be entitled to such rent
abatement. 

18. SURRENDER.
Subject  to Sections 9, 10 and 16 hereof, upon the expiration of this Sublease, or
upon the  termination of the Sublease or of the Sublessee’s right to possession of
the  Premises, Sublessee will at once surrender and deliver up the Premises, together
with all  improvements thereon, to Lessee in broom swept condition, reasonable  

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wear and tear
excepted. Sublessee shall surrender to Lessee all keys to the Premises and make known to
Lessee the explanation of all combination locks which Sublessee is permitted to leave on
the Premises. All improvements in or upon the Premises made by Sublessee shall become a
part of and shall remain upon the Premises upon such termination without compensation,
allowance or credit to Sublessee. 

19. REMOVAL OF
SUBLESSEE’S PROPERTY. Upon the expiration of this Sublease, Sublessee shall removal
Sublessee’s articles of personal property incident to Sublessee’s business
(“Trade Fixtures”); provided, however, that Sublessee shall repair any injury or
damage to the Premises which may result from such removal, and shall restore the Premises
to the same condition as prior to the installation thereof except reasonable wear and tear
excepted. 

20. HOLDING OVER.
Sublessee shall have no right to occupy the Premises or any portion thereof after the
expiration of this Sublease or after termination of this Sublease or of Sublessee’s
right to possession in consequence of an Event of Default hereunder. In the event
Sublessee or any party claiming by, through or under Sublessee holds over, Lessee may
exercise any and all remedies available to it at law or in equity to recover possession of
the Premises, and to recover damages, including without limitation, damages payable by
Lessee to Lessor by reason of such holdover. For each and every month or partial month
that Sublessee or any party claiming by, through or under Sublessee remains in occupancy
of all or any portion of the Premises after the expiration of this Sublease or after
termination of this Sublease or Sublessee’s right to possession, Sublessee shall pay,
as liquidated damages and not as a penalty, monthly rental at a rate equal to the Base
Rent plus any additional rent payable by Lessee under the Lease. 

21. ENCUMBERING TITLE.
Sublessee shall not do any act which shall in any way encumber the title of Lessor in and
to the Premises, nor shall the interest or estate of Lessor or Lessee be in any way
subject to any claim by way of lien or encumbrance, whether by operation of law by virtue
of any express or implied contract by Sublessee, or by reason of any other act or omission
of Sublessee. Any claim to, or lien upon, the Premises arising from any act or omission of
Sublessee shall accrue only against the subleasehold estate of Sublessee and shall be
subject and subordinate to the paramount title and rights of Lessor in and to the Premises
and the interest of Lessee in the premises leased pursuant to the Lease. Without limiting
the generality of the foregoing, Sublessee shall not permit the Premises to become subject
to any mechanics’, laborers’ or materialmen’s liens on account of labor or
material furnished to Sublessee or claimed to have been furnished to Sublessee in
connection with work of any character performed or claimed to have been performed on the
Premises by, or at the direction or sufferance of Sublessee, provided, however, that if so
permitted under the Lease, Sublessee shall have the right to contest in good faith and
with reasonable diligence, the validity of any such lien or claim of lien if Sublessee
shall give to Lessor and Lessee such security as may be deemed satisfactory to them to
assure payment thereof and to prevent any sale, foreclosure, or forfeiture of the Premises
by reason of non-payment thereof, provided further, however, that on final determination
of the lien or claim of lien, Sublessee shall immediately pay any judgment rendered, with
all proper costs and charges, and shall have the lien released and any judgment satisfied. 

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22.  LESSEE’S
RESERVED  RIGHTS.  Lessee reserves the right, on reasonable  prior notice,  to inspect
the Premises,  or to exhibit the Premises to persons having a legitimate  interest  at
any time during the Sublease Term. 

23.  DEFAULTS.
Sublessee  further  agrees that any one or more of the  following  events  shall be
considered Events of Default as said term is used herein, that is to say, if: 

	 	A. 	
Sublessee shall be adjudged an involuntary bankrupt, or a decree or order approving, as
properly filed, a petition or answer filed against Sublessee asking reorganization of
Sublessee under the Federal bankruptcy laws as now or hereafter amended, or under the laws
of any State, shall be entered, and any such decree or judgment or order shall not have
been vacated or stayed or set aside within sixty (60) days from the date of the entry or
granting thereof, or 

	 	B. 	
Sublessee shall file, or admit the jurisdiction of the court and the material allegations
contained in any petition in bankruptcy, or any petition pursuant or purporting to be
pursuant to the Federal bankruptcy laws now or hereafter amended, or Sublessee shall
institute any proceedings for relief of Sublessee under any bankruptcy or insolvency laws
or any laws relating to the relief of debtors, readjustment of indebtedness,
reorganization, arrangements, composition or extension; or 

	 	C.  	 Sublessee
shall make  assignment  for the benefit of creditors or  shall apply for or consent to
the  appointment  of a receiver  for  Sublessee or any of the property of Sublessee; or 

	 	D.  	 Sublessee
shall admit in writing its  inability  to pay its debts  as they become due; or 

	 	E.  	 The
Premises  are  levied on by any  revenue  officer  or similar  officer; or 

	 	F.  	 A
decree  or order  appointing  a  receiver  of the  property  of  Sublessee  shall be made
and such  decree or order  shall not have  been vacated,  stayed or set aside within
sixty (60) days from the  date of entry or granting thereof; or 

	 	G.  	 Sublessee
shall abandon the Premises during the Term hereof; or 

	 	H.  	 Sublessee
shall  default in any  payment of Rent  required  to be  made by Sublessee  hereunder
when due as herein  provided and such  default shall  continue for seven (7) days after
notice thereof in  writing to Sublessee; or 

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	 	I.  	 Sublessee
shall by, its act or omission  to act,  cause a default  under the Lease and such
default  shall not be cured  within  the  time, if any permitted for such cure under the
Lease; or 

	 	J. 	
Sublessee shall default in any of the other covenants and agreements herein contained to
be kept, observed and performed by Sublessee, and such default shall continue for thirty
(30) days after notice hereof in writing to Sublessee. 

24.  REMEDIES.  Upon
the  occurrence  of any one or more  Events of  Default,  Lessee may  exercise any remedy
against  Sublessee  which Lessor may exercise for default by Lessee under  the Lease. 

25. NOTICES AND
CONSENTS. All notices, demands, requests, consents or approvals which may or are required
to be given by either party to the other shall be in writing and shall be deemed given
when received or refused if sent by United States registered or certified mail, postage
prepaid, return receipt requested or if sent by national overnight commercial courier
service (a) if to Sublessee, addressed to Sublessee at the address specified in
Section 1(B), or at such other place as Sublessee may from time to
time designate by notice in writing to Lessee, or (b) if for Lessee, addressed to Lessee
at the address specified in Section 1(C), or at such other place as
Lessee may from time to time designate by notice in writing to Sublessee. Each party
agrees promptly to deliver a copy of each notice, demand, request, consent or approval
from such party to Lessor and promptly to deliver to the other party a copy of any notice,
demand, request, consent or approval received from Lessor. Such copies shall be delivered
by certified or registered mail, return receipt requested. Sublessee may rely upon any
notice, consent or approval given in writing by Lessee’s agent or attorney. 

26. PROVISIONS
REGARDING SUBLEASE. This Sublease and all the rights of parties hereunder are subject and
subordinate to the Lease. Each party agrees that it will not, by its act or omission to
act, cause a default under the Lease. The parties hereto acknowledge and agree that it is
the intent of the Parties hereto that Sublessee does not assume all of the obligations of
Lessee under the Lease, and this Sublease shall be strictly construed to determine if and
when an obligation of Lessee under the Lease is assumed by Sublessee hereunder.
Accordingly, in order to afford to Sublessee the benefits of this Sublease and of those
provisions of the Lease which by their nature are intended to benefit the party in
possession of the Premises, and in order to protect Lessee against a default by Sublessee
which might cause a default or event of default by Lessee under the Lease: 

	 	A. 	
Provided Sublessee shall timely pay all Base Rent when and as due under this Sublease,
Lessee shall pay, when and as due, all other charges payable by Lessee to Lessor under the
Lease. 

	 	B.  	 Lessee
shall perform its covenants and obligations under the Lease which do not require  for
their performance possession of the  

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	 	Premises
and which are not otherwise to be  performed hereunder by Sublessee on behalf of Lessee.  

	 	C. 	
Lessee shall not agree to amendment to the Lease which might have any adverse effect on
Sublessee’s occupancy of the Premises or its use of the Premises for its intended
purpose, unless Lessee shall first obtain Sublessee’s prior written approval thereof. 

	 	D. 	
Lessee hereby grants to Sublessee the right to receive all of the services and benefits
with respect to the Premises which are to be provided by Lessor under the Lease. Except as
provided in the Lease, Lessee shall have no duty to perform any obligations of Lessor
which are, by their nature, the obligation of owner or manager of real property. Lessee
shall have no responsibility for or be liable to Sublessee for any default by Lessor of
any of its obligations under the Lease, nor shall such default by Lessor affect this
Sublease or waive or defer the performance of any of Sublessee’s obligations
hereunder except to the extent that such default by Lessor excuses performance by Lessee,
under the Lease. Notwithstanding the foregoing, the parties contemplate that Lessor shall,
in fact, perform its obligations under the Lease and in the event of any default or
failure of such performance by Lessor, Lessee agrees that it will, upon notice from
Sublessee, make demand upon Lessor to perform its obligations under the Lease and,
provided that Sublessee specifically agrees to pay all costs and expenses of Lessee and
provides Lessee with security reasonably satisfactory to Lessee to pay such costs and
expenses, Lessee will take appropriate legal action to enforce the Lease. 

27. DEFAULT BY LESSEE.
If at any time during the Term hereof, Lessee shall default in any of its obligations
under this Sublease or the Lease, Sublessee may give written notice to Lessee of its
intention to terminate the Sublease together with a statement of the nature of such
default, and such termination shall become effective on the thirtieth (30th) day after the
date of such notice unless such default shall be cured within thirty (30) days after such
notice. 

28.  BROKERAGE.  Each
party  warrants to the other that it has had no  dealings  with any  broker or agent in
connection with this Sublease. 

29. LEASE. Sublessee
acknowledges that it has read and examined the Lease, a copy of which is attached hereto
as Exhibit A, and is fully familiar with the terms, covenants and conditions on
the  Lessee’s part as tenant to be performed thereunder. The parties hereto
acknowledge  and agree that all the rights and obligations granted to Lessee (as lessee
under the  Lease) are not necessarily granted to Sublessee, as Sublessee shall have only
those rights  and obligations as are specifically set forth in this Sublease. Lessee
covenants and  agrees to fully and faithfully perform the terms and conditions of the
Lease and this  Sublease on its part to be performed. Neither Lessee nor Sublessee shall
do or 

E-41 

cause to be  done or
suffer or permit any act to be done which would cause the Lease, or the rights of
Lessee, as tenant, under the Lease, to be endangered, canceled, terminated, forfeited or
surrendered, or which would cause Lessee to be in default thereunder or liable for any
damage, claim or penalty. Sublessee agrees, as an express inducement for Lessee’s
executing this Sublease, that if there is any conflict between the provisions of this
Sublease and the provisions of the Lease which would permit Sublessee to do or cause to
be  done or suffer or permit any act or thing to be done which is prohibited by the Lease
then  the provisions of the Lease shall prevail except for the limitations set forth
herein in  Sections 3 and 7. If the Lease terminates or is terminated for any
reason  whatsoever, then the Term shall terminate simultaneously therewith. 

 
        Lessee
shall have no duty to perform any obligations of the Lessor under the Lease and shall
under no circumstances be responsible for or liable to Sublessee for any default, failure
or delay on the part of the Lessor in the performance of any obligations under the Lease,
nor shall such default of the Lessor affect this Sublease or waive or defer the
performance of any of Sublessee’s obligations hereunder; provided, nevertheless, that
in the event of any such default or failure of performance by Lessor, Lessee agrees, upon
notice from Sublessee, to make demand upon Lessor to perform its obligations under the
Lease. 

30. INDEMNITY. Lessee
agrees to indemnify Sublessee and hold Sublessee harmless from all losses, damages,
liabilities and expenses which Sublessee may incur, or for which Lessee may be liable to
Lessor, arising from the acts or omissions of Lessee which are the subject matter of any
indemnity or hold harmless of Lessee to Lessor under the Lease and which are not expressly
assumed by Sublessee hereunder. 

31. SEVERABILITY. If
any clause or provision of this Sublease is illegal, invalid or unenforceable, under
present or future laws effective during the Term hereof, then it is the intention of the
parties hereto that the remainder of this Sublease shall not be affected thereby and it is
also the intention of both parties that in lieu of each clause or provision that is
illegal, invalid or unenforceable, there be added, as a part of this Sublease, a clause or
provision as similar in terms to such illegal, invalid or unenforceable clause or
provision as may be possible and be legal, valid and enforceable; provided however, that
both parties must agree in writing to such substitute language and provisions before such
will become binding on either party. 

32. FORCE MAJEURE.
Neither party shall be deemed in default with respect to any of the terms, covenants and
conditions of this Lease on their part to be performed, if their failure to timely perform
same is due in whole or in part to any strike, lockout, labor trouble (whether legal or
illegal), civil disorder, failure of power, restrictive governmental laws and regulations,
riots, insurrections, war, act of terrorism, shortages, accidents, casualties, acts of
God, delays caused by the other party or its agents, employees and invitees, or any other
cause beyond such party’s reasonable control. 

33.  MISCELLANEOUS
PROVISIONS. 

 
        a)
The captions  appearing in this Sublease are inserted only as a matter of convenience and
in no way  define, limit, or affect the scope or intent of such Paragraphs or  

E-42 

Sections of this
Sublease. Any gender used herein shall be deemed to refer to any other gender. The use of
singular herein shall be deemed to include the plural and, conversely the plural shall be
deemed to include the singular. 

 
        b)
Time is of the  essence in this agreement. 

 
        c)
This agreement shall  be construed and interpreted under the laws of the State of South
Carolina. 

 
        d)
Nothing herein  contained shall be deemed to require the Sublessee to pay or discharge
any liens or  mortgages of any character whatsoever which may be placed upon the
Subleased Premises by  the act of the Lessor, or to perform or pay for any of Lessor’s
obligations herein 

 
        e)
Each individual  executing this Sublease on behalf of a corporation represents and
warrants that he or she  has been authorized to do so by such entity. 

34. LESSOR’S
CONSENT. This Sublease and the obligations of the parties hereunder are expressly
conditioned upon Lessee’s obtaining prior written consent hereto by Lessor. Lessee
and Sublessee hereby agree, for the benefit of Lessor, that this Sublease and
Lessor’s consent hereto shall not: (a) create privity of contract between Lessor and
Sublessee; (b) be deemed to have amended the Lease in any regard (unless Lessor shall have
expressly agreed in writing to such amendment); or (c) be construed as a waiver of
Lessor’s right to consent to any assignment of the Lease by Lessee or any further
subletting of Premises leased pursuant to the Lease, or as a waiver of Lessor’s right
to consent to any assignment by Sublessee of this Sublease or any subletting of the
Premises or any part thereof. Lessor’s consent shall, however, be deemed to evidence
(1) Lessor’s agreement that Sublessee may use the Premises for the purpose set forth
in Section 6 above, and (2) Lessor’s acknowledgement, consent and agreement
that notwithstanding Section 20 of the Lease, Sublessee is and shall not be subject
to all the obligations of the Lessee set forth in the Lease unless expressly assumed by
Sublessee hereunder. If Lessor fails to consent to this Sublease within thirty (30) days
after the execution and delivery of this Sublease, either party shall have the right to
terminate this Sublease by giving written notice thereof to the other party at any time
thereafter, but before Lessor grants such consent. 

E-43 

 
        The
parties have executed this Sublease as of the day and year first above written. 

	 	LESSEE: 

	 	CAROLINA
FIRST  BANK,  a  South  Carolina  banking corporation 

	 	By:  	/s/
GARY BRUCE THOMAS (SEAL)  

	 	 	Name:
Title:	Gary
Bruce Thomas
Senior Vice President  

	 	SUBLESSEE: 

	 	CAPITALBANK,
a  South  Carolina  banking  corporation 

	 	By:  	 /s/
RALPH W. BREWER (SEAL)  

	 	 	Name:
Title:	Ralph
W. Brewer
Chief Financial Officer 

[LESSOR’S
CONSENT AND AGREEMENT ATTACHED] 

E-44 

LESSOR’S
CONSENT AND AGREEMENT 

 
        1.
The  undersigned  Lessor  hereby  consents to this  Sublease in  accordance  with the
terms and conditions hereof. 

 
        2.
The  undersigned  Lessor  hereby agrees that a copy of all notices sent to  Lessee
pursuant to the Lease shall  simultaneously  be sent to  Sublessee  at the  following
address:  CapitalBank,  P.O.  Box 218,  Greenwood,  South  Carolina  29648  Attn.  R.
Wesley  Brewer. 

	 	LESSOR: 

	 	ROBERT
T. HARRISON FAMILY TRUST 

	 	By:  	/s/
ROBERT T. HARRISON (SEAL)  

	 	 	Name:
Title:	Robert
T. Harrison
Trustee 

	 	OLIVE
S. HARRISION FAMILY TRUST 

	 	By:  	/s/
ROBERT T. HARRISON (SEAL)  

	 	 	Name:
Title:	Robert
T. Harrison
Trustee 

Date:  May 6, 2002 

E-45 

EXHIBIT A 

Lease 

	STATE OF SOUTH CAROLINA 	) 
	 	  
	COUNTY OF ANDERSON	) 

INDENTURE OF LEASE 

From 

HARMON W. GEIGER, JR. 

	 	LESSORS, 

To 

CAROLINA FIRST BANK 

	 	LESSEE. 

1. PARTIES 

THIS LEASE  AGREEMENT
made as of the 15 day of September,  1992,  and executed in duplicate,  between  HARMON
W.  GEIGER,  JR.  hereinafter  called  “Lessor”  and  CAROLINA  FIRST  BANK,
hereinafter called “Lessee”. 

W I T N E S S E T H: 

2. CONSIDERATION 

That each of the
aforesaid parties acknowledge the receipt of a valuable consideration from the other and
that they, and each of them, act herein in further consideration of the engagements of the
other as herein stated. 

3. PREMISES 

That Lessor has and
does hereby grant, demise and lease unto the said Lessee the premises shown on the
attached Schedule “A”, designated as 0.89 acres and known as 1722 North Main
Street, Anderson, South Carolina. Lessee accepts the premises in its current condition. 

4. TERM 

FOR THE LESSEE TO HAVE
AND TO HOLD said premises for a term of twelve (12) years beginning September 15, 1992 and
ending at 12:00 noon on September 15, 2004. 

5. RENTAL 

The Lessee covenants
and agrees to pay to the Lessor the following: 

(a) For the  partial
lease  term  beginning  September  16,  1992 at 12:01  p.m.  and ending  September  15,
19941 at 12:00 p.m.  the Lessee shall pay the sum of Two Thousand Six Hundred  Sixty
($2660.00) Dollars per month. 

E-46 

(b) For the  partial
lease term  beginning  September,  15,  1994 at 12:01  p.m.  and ending  September  15,
1996 at 12:00 p.m.,  the Lessee shall pay the sum of Two Thousand Nine Hundred
($2900.00) and No/100 Dollars, per month. 

(c) For the partial
lease term beginning September-15, 1996 at 12:01 p.m. and ending September 15, 2002, the
Lessee shall pay the sum of Three Thousand One Hundred Fifty Five ($3155.00) and No/100
Dollars, per month. 

(d) For the partial
lease term beginning September 15, 2002 at 12:01 p.m. and ending September 15, 2004, the
Lessee shall pay the sum of Three Thousand Two Hundred Fifty Five ($3255.00) and No/100
Dollars, per month. 

The monthly payments
shall be payable in advance on the 15th day of each and every month during the term of
this Lease Agreement. 

In the event that the
Lessee shall fail to pay any rental payments within Five business (5) days after the due
date, the Lessor shall assess a late payment charge equivalent to five (5%) percent of the
monthly rental and such charge shall be treated as additional rent. Thereafter unpaid rent
and accrued charges shall accrue interest at the rate of eight (8.00%) per cent per annum.
Acceptance by the Lessor of assessment of such late charge shall not waive any right to
declare default under this Lease Agreement. This provision shall in no way limit
Lessor’s rights under Article 17. 

6. PROOF OF PAYMENT 

The burden of proof of
payment of rent in case of controversy shall be upon the Lessee. 

7. QUIET POSSESSION 

The Lessor hereby
covenants that, if Lessee shall keep and perform all of the covenants of this Lease
Agreement on the part of Lessee to be performed, Lessor will keep the Lessee in the quiet
and peaceful possession of the said premises. 

8. LAWFUL PURPOSES 

Lessee covenants that
the demised premises shall, during the term of this Lease Agreement, be used only and
exclusively for lawful purposes and no part of the demised premises shall be used in any
manner whatsoever for any purpose in violation of the laws of the United States, the State
of ‘South Carolina, or of the applicable county and municipal ordinances and laws
that are enforced. 

9. PROTECTION FROM
VIOLATIONS 

Lessee covenants that
it shall save and hold the Lessor harmless from violations by Lessee, its agents or
sublessee, of the laws of the United States, the State of South Carolina and the
applicable county and municipal ordinances and laws. 

10. NUISANCE 

Lessee agrees not to
create or allow any nuisance to exist on said demised premises, and to abate any nuisance
that may arise, promptly and free of expense to Lessor. This includes a covenant to
operate the business so as to limit noise to reasonable levels, and to keep the interior
of the premises clean. If noise becomes a nuisance to the public, the Lessee shall
promptly at its expense install additional sound insulation or take other measures to
abate the nuisance. Failure to promptly abate the nuisance shall upon written notice of
Lessor be a breach by Lessee. 

E-47 

11. ALTERATIONS OR
IMPROVEMENTS 

Lessee may make
changes or alterations about the said demised premises which it reasonably deems necessary
for its efficient usage of the premises; it being understood and agreed that the Lessee
shall not make any changes or alterations without Lessor’s written consent which
would materially effect the value or utility of the building, which consent would not be
unreasonably withheld. 

In all events,
Lessee’s alterations shall conform with the Building Code and ordinances of the
municipality, county and city, and all alterations and/or changes will be made in
conformance to good engineering and building practices. All work shall be done by
qualified licensed individuals, and Lessor reserves the right to require municipal
inspection of the work done with any inspection fee charged by the municipality to be paid
by Lessee, and to require a timely waiver of mechanics lien by anyone performing services
or materials. 

Lessee further agrees
that if any modifications or improvements are required to be made to the demised premises
due to the fact that the Lessee employs handicapped employees, the Lessee agrees at its
sole expense to make such modifications or improvements as m be required by any building
code and ordinances as provided above. 

12. MECHANIC’S LIEN 

If any mechanic’s
liens be filed against the demised premises by reason of work, labor, services or
materials supplied or claimed to have been supplied to the Lessee, the Lessee, if same is
not disputed by the Lessee, shall cause such lien to be discharged within twenty (20) days
after the date such lien is filed; or, if such lien is disputed by Lessee, Lessee shall
have the right, at Lessee’s expense, to contest the same and if and to the extent
such lien is substantiated, Lessee shall cause the same to be discharged within twenty
(20) days after the date any such judgment of a Court of competent jurisdiction shall
become final. If the Lessee fails to discharge such mechanic’s lien within the time
as above provided, then Lessor may, but is not obligated to, discharge the same by payment
of the amount claimed to be due, and amount so paid by the Lessor shall be deemed
additional rent and payable on the next due date. 

13. INSURANCE 

A. At all times
subsequent to the commencement date of the term of this lease and during its full term,
the Lessee shall keep the building, the building service equipment and all improvements
upon the demised premises covered by fire and extended coverage insurance, and vandalism
and malicious mischief insurance, and such insurance shall be in an amount equal to not
less than the full insurable value thereof. Any deductible so elected by the Lessee shall
be guaranteed by the Lessee herein in case of loss. 

B. All policies of
insurance required to be maintained by the Lessee shall name the Lessee and Lessor as the
insured as their respective interests may appear and proof thereof shall be furnished to
Lessor on or before the date of expiration of any existing policies. Failure of Lessee to
maintain insurance as provided for in subparagraph A above shall entitle Lessor to acquire
such insurance and add the costs thereof to any rents then due and owing entitling Lessor
to any other claims for late payment, interest or default as provided for in paragraph 5 . 

C. During the full
term of this lease, the Lessee shall, at its sole cost and expense, maintain for the
benefit of the Lessor and Lessee comprehensive general liability insurance against claims
for personal injury or property damage with limits of at least $250,000.00 for bodily
injury and $100,000.00 for property damage. Lessee agrees to, and hereby does, indemnify
and save Lessor harmless against all claims for damages to persons or property by reason
of Lessee’s use or occupancy of premises, and all expenses incurred by Lessor because
thereof, including attorney’s fees and court costs. 

D. Lessee agrees that
it will carry, at its sole cost and expense, fire and extended coverage insurance,
covering all of its personal property within the demised premises, so as to be able to,
and in the event of a  

E-48 

damage or
destruction, Lessee shall, make replacement of its  personal property. 

E. Lessee shall
provide sufficient evidence to the Lessor that the insurance policy obtained does not
exclude damage caused by the negligence of the Lessee especially as it might relate to
damage caused by the employees of the Lessee. 

F. Lessor and Lessee
agree and covenant that neither shall be liable to the other for loss arising out of
damage to or destruction of the demised premises or contents thereof when such loss is
caused by any perils included within standard fire and extended coverage insurance policy
of a company licensed in the state of South Carolina. This agreement shall be binding
whether or not such damage or destruction be caused by negligence of either party or their
agents, employees or visitors. Notwithstanding the preceding, in no event shall this
subsection F. be effective if it would result in the disallowance of any portion of the
insurance coverage by the carrier pursuant to the terms of the relevant insurance policy. 

14. INSOLVENCY OR
BANKRUPTCY 

A. In the event of the
insolvency or bankruptcy of the Lessee or the filing of any petition under the Bankruptcy
Act, voluntarily or involuntarily, and such bankruptcy is not stayed within ninety (90)
days of the filing of such petition, or in the event of a general assignment for the
benefit of creditors then the Lessor shall have the right and privilege to either (a)
immediately terminate this Lease Agreement by thirty (30) days’ written notice; or
(b) to re-enter into possession of the premises and to hold the Lessee liable for the
difference, if any, between the rental herein reserved for the unexpired portion of the
term and any lesser amount which Lessor, in the exercise of reasonable diligence, is able
to procure for the unexpired portion of the term, each monthly difference being a separate
cause of action, nor shall Lessor be liable to Lessee for any larger amount of which
Lessor is able to procure. 

B. In the event of an
insolvency, bankruptcy or a general assignment for the benefit of creditors in respect to
a sublessee or assignee of this lease, then the provisions of Paragraph A of this Article
shall also apply to such sublessee or assignee without regard to the solvency of the
Lessee herein. 

15. DELIVERY AT END
OF LEASE 

The Lessee agrees to
deliver up to the said Lessor, or Lessor’s agents or assigns, the said premises at
the end of this Lease Agreement, with the keys of same, cleared of all persons and
property not belonging to same, and in the same good order and condition as the same were
received by Lessee, ordinary wear and tear, and damage by fire or other casualty excepted.
No demand or notice of such delivery shall be necessary. 

16. RIGHT OF ENTRY 

Lessor reserves the
right during the term of this Lease Agreement to enter said premises at reasonable hours
to show the same or inspect the same, but has no obligation to make an inspection of said
property. 

17. DEFAULT OF RENT,
ETC. 

All covenants and
agreements herein made and obligations assumed are to be construed also as conditions,
and  these presents are upon the express condition that if Lessee shall fail to pay when
due  any of the aforesaid rent installments and the said failure to pay such shall
continue for  seven (7) days after the mailing of written notice by certified or
registered mail to  Lessee by Lessor for such failure to pay, or should Lessee fail to
perform or observe in  all material aspects any of the other covenants, agreements or
obligations herein made or  assumed by said Lessee, and such failure shall continue for
seven (7) days after the  mailing of written notice by certified or registered mail to
Lessee by Lessor of such  default, then and thence forth, in any of said events, this
Lease Agreement may be  forfeited and thereby become null and void, at the option of the
Lessor, and said Lessor  may immediately re-enter said demised premises, or any part
thereof in the name of the  whole and repossess and have the same as of Lessor’s
former estate and 

E-49 

remove  therefrom all
goods and chattels not thereto properly belonging (and or exercise any right  of landlord
lien with respect to any such personality), and expel said Lessee and all  other persons
who may be in possession of said demised premises; and Lessor shall  thereafter be
entitled to recover of Lessee the difference between the rental herein  reserved for the
remaining portion of the original term and any lesser amount which  Lessor, in the
exercise of reasonable diligence, are able to procure for said remaining  unexpired
portion of the term, each monthly difference being a separate cause of action:  nor shall
Lessor be liable to Lessee in such event, for any larger amount of rent which  Lessor is
able to procure for the unexpired portion of the term. In addition to all other  amounts
recoverable by the Lessor, Lessor shall be entitled to recovery of any amounts  expended
for legal fees or court costs in collecting any amounts due under this agreement. 

18. ENVIRONMENTAL
REQUIREMENTS 

Inasmuch as Lessee
simultaneously herewith is selling the demised premises to Lessor and the parties are
aware of an environmental survey reflecting certain concerns which have been recommended
to be removed from the premises but which are not posing any present danger or harm, it is
the intention by the parties that Lessor not be subjected to the expense of any required
removal of such items, Lessee does hereby agree that in any event any governmental agency,
body or enforcement proceeding should require of such environmental concerns, that Lessee
shall cause such to be removed at Lessee’s expense and shall indemnify and hold
harmless Lessor against any such loss, costs, fines and/or attorney’s fees which may
be incurred and shall reimburse in all respect Lessor for same. 

19. RIGHT TO
TERMINATE NOT EXCLUSIVE 

The right of the
Lessor to terminate this Lease Agreement as herein set forth is in addition to and not in
exhaustion of such other rights that the Lessor has or causes of action that may accrue to
Lessor because of Lessee’s failure to fulfill, perform or observe the obligations,
agreements or covenants of this Lease Agreement, and the exercise or pursuit by Lessor of
any of the rights or causes of action accruing hereunder shall not be an exhaustion of
such other rights or causes of action that the Lessor might otherwise have. 

20. SUBLETTING 

The Lessee shall not
sublet the demised premises or assign this Lease Agreement without the written consent of
the Lessor, which right to sublease or assign shall not .unreasonably be withheld by
Lessor. In any event, the Lessee shall not be in any respect released from any
obligations, express or implied, undertaken by it herein for the payment of rent and for
the performance of all other terms of this lease, and any sub-tenant or assignee of Lessee
shall be subject to and bound by all covenants and agreements of the Lessee hereunder. 

21. WAIVER OF NOTICE 

Lessor and Lessee
waive notice of the termination of this Lease Agreement at the end of the term of this
Lease Agreement. 

22. DAMAGE TO
PREMISES . 

In the event that the
improvements which are erected on said demised premises shall be damaged or destroyed by
fire or other cause, then Lessor may at its option promptly commence repair or
restoration. Otherwise this Lease Agreement shall terminate. 

23. WAIVER OF BREACH 

It is hereby
covenanted and agreed that no waiver of a breach of any of the covenants of this Lease
Agreement shall be construed to be a waiver of any succeeding breach of the same or any
other covenant. 

E-50 

24. COVENANTS RUN
WITH LAND, ETC. 

It is hereby
covenanted and agreed between the parties hereto that all covenants, conditions,
agreements, and undertakings in this Lease Agreement contained shall be taken, deemed and
treated as covenants running with the land, and shall extend to and be binding upon the
respective heirs, successors and assigns of the respective parties hereto (including any
sublessee of Lessee), the same as if they were in every case named and expressed; also
that the term “Lessor” and “Lessee” shall be construed in the singular
or plural number according as they represent one or more than one person. 

25. ATTORNEYS FEES 

The Lessee covenants
to pay all costs of collection including reasonable attorneys’ fees, if all or any
part of the rent reserved herein is collected after maturity and after expiration of the
grace period provided for in Article (17) with the aid of an attorney; also the Lessee
shall pay reasonable attorneys fees in the event it becomes necessary to employ an
attorney to enforce any of the other covenants, obligations or conditions imposed by this
Lease Agreement and Lessor receive a judgment in his favor in a Court of competent
jurisdiction. 

26. KIND OF BUSINESS 

The business to be
conducted in the within demised premises is that of operating a Savings or Banking
Institution. In the event Lessee desires to change the use of the premises, Lessee shall
obtain Lessor’s permission. Lessor shall not unreasonably withhold consent. The
Lessee warrants and covenants that it shall operate 100% of the leased premises during the
entire term of this Lease unless prevented from doing so because’ of fire, accident,
acts of God and to conduct its business at all times in a high class, dignified and
reputable manner, maintaining at all times a full staff of employees. It will conduct its
business in a lawful manner and in good faith. 

27. UTILITIES 

The Lessee shall be
responsible for maintaining any and all necessary utilities. 

28. HOLDING OVER 

It is mutually
understood and agreed that in the event Lessee should hold over after the termination of
this Lease Agreement, either by expiration of the term herein stated or otherwise, that
such holding over shall not be construed as a holding over from month to month, year to
year, or term of years, or for a periodic term of any kind, but such holding over shall be
from day to day and solely at the will of the Lessor. 

29. REPAIRS 

For the full term of
this Lease and any extensions and renewals hereof the Lessee shall be responsible for and
shall maintain in the manner of which received: 

(a) The Roof; 

(b) Exterior Walls; 

(c) All structural
aspects of the demised premises including pavements, curbs and parking lot in all areas
and items of which the demised premises are a part of and attached to; 

(d) The Heating and
Air Conditioning System located in said premises. 

The Lessee shall be
responsible for maintenance of the interior to include plumbing, electrical, exterior
doors, windows, floors (whether carpet or tile) and such other interior components of the
demised premises. 

E-51 

The Lessee shall be
responsible for all glass in any door, window or  other location of the premises. 

Lessee shall remove
trash and debris from the parking lot and in the immediate vicinity of the Lessee’s
rental unit. 

30. AD VALOREM TAXES 

(a) Lessee will pay
annually the city, county and state Ad Valorem taxes which are assessed and is due on the
land described herein and the sidewalks, streets, entrance ways, parking areas, service
drives, and driveway and related improvements thereon. 

(b) Within 15 days
from mailing by first class mail or upon delivery if hand delivered Lessee shall make
payments of the above mentioned taxes. Failure of Lessee to pay said taxes as provided for
in herein shall entitle Lessor to pay such taxes and add the costs thereof to any rents
then due and owing entitling Lessor to any other claims for late payment, interest or
default as provided for in paragraph 5. 

31. REMOVAL OF
EQUIPMENT 

At the termination of
this Lease Agreement, the Lessee, if not in default, shall have the right to remove all
trade fixtures and equipment which it installs in the demised premises (provided same are
not replacements of items installed by Lessor), it being expressly understood and agreed
that in the event of any such removal by Lessee, it will, at its expense make any
necessary repairs resulting from same. 

32. NOTICE 

All notices to be
given to either party by the other shall be by certified or registered mail, return
receipt requested, whether or not it is specifically designated as such in this Lease
Agreement. All notices to be given to Lessor or Lessee shall be sent to the address listed
below the signature line of the agreement or to such other address as shall hereafter be
directed in writing to either party by the other. The time of any such notice shall begin
to run with the date of the receipt of such notice. All notices to be given to Lessor by
Lessee shall also be given to any mortgagee of the demised premises of whom Lessee has
been advised in writing by Lessor. Said notices shall be by certified or registered mail
also, return receipt requested. 

33. ESTOPPEL
CERTIFICATE AND SUBORDINATION 

Lessee, upon request
of Lessor or any holders of a mortgage against the fee, shall from time to time deliver or
cause to be delivered to Lessor or such mortgagee, within ten (10) days from date of
demand a certificate duly executed and acknowledged in form for recording, without charge,
certifying, if true, that this Lease is valid and existing and in full force and effect
and that the Lessor is not in default under any terms of this Lease. 

Lessee hereby agrees
that this Lease Agreement shall automatically be subordinated to any mortgages or trust
deeds covering the demised premises now existing or hereafter placed by Lessors with a
bank, insurance company, or other institutional lender, provided that in connection with
the execution of any such security’ instruments, the lender and Lessor shall execute
and deliver an agreement in favor of Lessee in proper form for recordation to the effect
that the tenancy and other rights of Lessee hereunder shall not be disturbed due to said
mortgages or trust deeds, so long as Lessee pays the rent and performs all other terms and
conditions of this Lease Agreement on Lessee’s part to be performed. 

This provision shall
be self-operative and no further instrument of subordination shall be necessary to
effectuate such subordination, and the recording of any such mortgage shall have
preference and precedence and be superior and prior in lien to this lease, irrespective of
the date of recording. In confirmation of such subordination, Lessee shall, on request,
execute promptly any certificate that Lessor may request and in default of such execution
Lessor as Lessee’s attorney-in-fact may execute any such certificate or certificates
on behalf of Lessee in the event Lessee fails to do so after ten (10) days notice in
writing to Lessee. 

E-52 

34. CONDEMNATION 

In the event that any
of the building on the demised premises or at least fifty (501) percent of the demised
premises as to make the remainder unsuitable for Lessee’s purposes herein provided,
considering Lessee’s needs, shall be taken under power of eminent domain, Lessee may,
at its option, declare this Lease Agreement terminated from the date of which the Lessee
shall be deprived of the possession, use or enjoyment of the demised premises, and Lessee
shall be relieved of any further obligations hereunder. In the event this Lease Agreement
is not so terminated upon a taking under the power of eminent domain, Lessor shall
diligently restore the premises as nearly as possible to their condition and status prior
to such taking, the annual rental to be equitably reduced. If Lessee cannot reasonably
conduct its business during such period of restoration, the rental shall abate during said
period of time. 

Lessee shall be
entitled to make claim against the governmental authorities for the amount of the actual
provable damage done to Lessee by such taking. 

35. MEMORANDUM OF
LEASE 

Lessor and Lessee
agree if requested to execute a memoranda of this lease suitable for recording under the
applicable laws of the recording authority where the leased premises are located. 

36. OPTION FOR THREE
EXTENDED TERMS 

Lessee shall have
three (3) options to renew this Lease for three (3) additional terms of five (5) years
each. The First option shall be exercisable by giving Lessor written notice of intent to
exercise not less than 180 days before the end of the initial term of the Lease or any
Option term. In the event Lessee does not give its written notice exercising such right
during such period, all rights of Lessee under this Paragraph shall terminate. 

In the event the
renewal option is exercised by the Lessee, the rental payable for the renewal period shall
be as follows: a rate mutually agreed based upon the then fair market value. 

In the event that the
parties cannot agree upon a fair market rate, then each party hereto shall appoint an
independent certified public accountant, both of whom will select a third independent
certified public accountant mutually acceptable to them. The three accountants shall then
determine in good faith during the first 60 days of the 180 day period referenced above,
the then fair market rate of the lease. Upon being informed of the accountants
determination of the fair market rate, Lessee shall have 10 business days to exercise its
option to renew. If such Option is not exercised within such 10 day period, such right
will expire. 

37. MISCELLANEOUS 

The terms of this
Agreement shall be binding upon and inure to the benefit of, and shall be enforceable by,
the successors and assigns of the parties hereto. This Agreement shall be governed and
construed in accordance with the laws of the State of South Carolina, irrespective of the
fact that any one of the parties now is or may become a resident of a different state. In
case any term of this Agreement shall be held invalid, illegal or unenforceable in whole
or in part, neither the validity of the remaining part of such terms nor the validity of
any other term of this Agreement shall in any way be affected thereby. This is the full
Agreement of the parties and shall not be modified unless evidenced by written
modification. 

IN TESTIMONY WHEREOF,
the above named Lessor and the above named Lessee have caused this instrument to be
executed in duplicate on the date and year set forth in Paragraph (1) of this Lease
Agreement. 

E-53 

IN THE PRESENCE OF: 

	/s/ W.R. MERRITT, JR.
	 	/s/ HARMON W, GEIGER, JR.

Harmon W. Geiger, Jr. 	 
	/s/ PAULA J. BURGESS
 	 	 	 
	 	 	LESSORS
Address:

CAROLINA FIRST BANK 	 
	  
	/s/ W.R. MERRITT, JR.
 	 	BY:
 	 
	  
	/s/ MARY M. GENTRY
 	 	ITS: Executive Vice President and Cashier	 
	 	 	Lessee Address:
 	 
	  
	 	 	
 	 

	STATE OF SOUTH CAROLINA 	) 	  
	 	 	 
	COUNTY OF ANDERSON	) 	PROBATE 

PERSONALLY appeared
before me /s/ W.R. MERRITT, JR. and made oath that she/he saw the within named
parties, as Lessors and Lessee sign, seal and as their act and) deed deliver the within
Lease Agreement, and that she/he with PAULA J. BURGESS witnessed the execution
thereof. 

SWORN TO BEFORE ME THIS

15TH DAY OF September, 1992.

/s/ Chris J. King            

Notary Public for S.C.

My Commission Expires: 9/14/2000 

E-54 

ROBERT T. HARRISON
FAMILY TRUST
POST OFFICE BOX 2940
GREENVILLE, SOUTH CAROLINA 29602 

March 10, 1997 

Mr. Bill Hummers

CAROLINA FIRST BANK

102 South Main Street

Greenville, SC 29601 

Dear Mr. Hummers: 

As you are aware, the
building at 722 North Main Street, Anderson, was purchased Friday, March 7, 1997, by
Robert T. Harrison Family Trust, and Olive Sims Harrison Family Trust, each with one-half
undivided interest. Consequently , Carolina First Bank should make all future lease
payments as follows: 

	 	
$1,577.50 payable to

Robert T. Harrison Family Trust

P.O. Box 2940

Greenville, SC 29602

	 	
       and

	 	
$1,577.50 payable to

Olive S. Harrison Family Trust

P.O. Box 2940

Greenville, SC 29602

Total Monthly
Lease $3155.00 

If you have any
questions please contact John Boyd, CPA at 864-271-1449: 

Very truly yours, 

/s/ ROBERT T. HARRISON     

Robert T. Harrison, Trustee 

E-55EXHIBIT 10.42 

	STATE OF SOUTH CAROLINA 	) 	  
	 	) 	SUBLEASE AGREEMENT 
	COUNTY OF GREENVILLE	) 	  

 
        THIS
SUBLEASE AGREEMENT (“Sublease”) is made and entered into to be effective as of
this 19th day of August, 2002, by and among Jack E. Shaw (the
“Landlord”), Nuevo Latino Investment Company, LLC, a South Carolina
limited liability company (“Lessee”), and CapitalBank, a South Carolina
banking corporation (“Sublessee”). 

 
        WHEREAS,
the Lessee and Landlord entered into that certain Lease Agreement dated effective as of
August 15, 2002 (the “Lease”), with respect to that certain premises located at
2520 Wade Hampton Blvd., Greenville, South Carolina 29615 (the “Premises”); 

 
        WHEREAS,
Lessee and Sublessee entered into that certain Branch Development Agreement dated as of
August 19, 2002 (the “Branch Development Agreement”), concerning the development
of a branch bank of Sublessee to be located at the Premises; and 

 
        WHEREAS,
Sublessee desires to sublease from Lessee, and Lessee desires to sublease to Sublessee,
the Premises pursuant to the terms and conditions set forth herein. 

 
        NOW
THEREFORE, in consideration of the mutual covenants herein contained, and good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereto agree as follows: 

	1.  	 BASIC
LEASE PROVISIONS. 

	 	A.  	 Property
Address:  2520 Wade  Hampton  Blvd.,  Greenville,  South  Carolina 29615. 

	 	B.  	 Sublessee’s
Address  (for  notices):  CapitalBank,  P.O. Box 218,  Greenwood, South Carolina 29648
Attn.  R. Wesley Brewer 

	 	C.  	 Lessee’s
Address (for notices):  P.O. Box 87,  Greenville,  South  Carolina 29602 Attn. James R.
Rogers, Jr. 

	 	E.  	 Landlord:
Jack E. Shaw. 

	 	F.  	 Landlord’s
Address  (for notices and rental  payments):  P.O. Box 5835, Greenville,  South Carolina
29606.  

	 	G.  	 Identification
of  Lease  and  all  amendments  thereto:  Lease  Agreement dated as of August 15, 2002,
and Rules and  

E-56 

	 	Regulations,
a copy of which are attached hereto as Exhibit A and incorporated herein by reference. 

	 	H.  	 Sublease
Term: The initial term of this Sublease shall commence at 12:01 am on October 1, 2002
(the “Commencement Date”) and end at 11:59 pm on September 30, 2005 (the
“Expiration Date”). The term of this Sublease may be extended pursuant
to  Section 28 hereof. 

	 	I.  	 Sublease
Rent paid to Landlord. 

	 	J.  	 Description
of  Premises:  All that  certain  real  property  and  improvements  located  thereon  at
2520  Wade  Hampton  Blvd.,  Greenville, South Carolina 29615. 

2. LEASE. Lessee is
the tenant under a Lease with the Landlord bearing the date specified in Section
1(F). Lessee represents and warrants to Sublessee that (a) Lessee has
delivered to Sublessee a full and complete copy of the Lease and all other agreements
between Landlord and Lessee governing the use and occupancy of the Premises, (b) the Lease
is as of the date hereof, and shall be as of the Commencement Date, in full force and
effect, and (c) no event of default has occurred under the Lease and, to Lessee’s
knowledge, no event has occurred and is continuing which would constitute an event of
default but for the requirement of the giving of notice and/or the expiration of the
period of time to cure. 

3. SUBLEASE. Lessee,
for and in consideration of the rents herein reserved and of the covenants and agreements
herein contained on the part of the Sublessee to be performed, hereby subleases to the
Sublessee, and the Sublessee accepts from the Lessee, all that certain Premises described
in Section 1(I). 

4. TERM. The initial
term of this Sublease (hereinafter “Term”) shall commence on the Commencement
Date and shall expire on the Expiration Date, unless sooner terminated as otherwise
provided elsewhere in the Sublease. In the event Sublessee exercises option(s) to extend
the term hereof pursuant to Section 28 hereof, the definition of “Term”
shall be deemed to include each such option period of such extended term. 

5. POSSESSION. Lessee
agrees to deliver possession of the Premises on or before the Commencement Date. 

6. SUBLESSEE’S
USE. The Premises shall be used and occupied only for the lawful purpose set forth in the
Lease. 

7. RENT. Until the
“Branch Opening Date” (as defined below), Lessee shall pay to the Landlord any
and all rental payments in accordance with the Lease. Beginning on the “Branch
Opening Date” (as defined below), Sublessee agrees to pay the rental payments
specified in such Lease for periods after the “Branch Opening Date” (the  “Rent”)
directly to the Landlord at the address specified in Section  1(E),
or to such other payee or at such other address as may be designated  by notice in
writing from Landlord to Sublessee,  

E-57 

without prior demand
therefore. Rent  shall be prorated for partial months. For purposes of this Sublease, the
term “Branch  Opening Date” shall means the date the branch to be located at
the Premises begins  operations to the public as a branch bank of Sublessee.
Notwithstanding the foregoing,  Sublessee, in addition to the foregoing, hereby agrees on
the Branch Opening Date to pay  to Lessee an amount equal to the lesser of (a) one and
one-half months rent previously  paid by Lessee to Landlord under the Lease, or (b) the
rent previously paid by Lessee to  Landlord under the Lease during the period October 1,
2002 through the Branch Opening  Date. 

8. ADDITIONAL RENT.
Commencing on the Branch Opening Date, Sublessee shall pay as additional rent for the
period of the Branch Opening Date through the remaining Term of this Sublease, the
following expenses: 

 
        A. Real Estate Taxes. Sublessee shall reimburse Landlord for such taxes, assessments
and charges imposed or assessed upon the Premises by federal, state, or local
government authority in accordance with the terms and Lessee’s obligations set forth
in Section 4 of the Lease. Such items shall be prorated as necessary. 

 
        B. Insurance. Sublessee shall reimburse Landlord for such insurance premiums in
accordance with the terms and Lessee’s obligations set forth in Section 5(a) of the
Lease. Such items shall be prorated as necessary. 

 
        C.
Utilities. Sublessee shall pay all charges for electricity, gas, heating, fuel,
water, sewer service charges and other utility service used in or rendered or supplied to
the Premises through the remaining Term of this Sublease. Such items shall be prorated as
necessary. Sublessee shall make such payments directly to the intended recipient thereof.
Prorations of such amounts as set forth above shall be based upon bills for the
immediately prior period unless actual amounts can be determined. Upon receipt of the
actual bill for such period, the party receiving such bill shall promptly forward same to
the other party and Sublessee and Lessee shall then make such adjustment and payment as
shall be required to make such proration accurate. 

9. HAZARDOUS SUBSTANCE
REMEDIATION. Notwithstanding anything contained herein to the contrary, Sublessee shall
not be required to remediate, purge or remove, or bear the cost of such remediation, purge
or removal of, any hazardous substance which contaminated the Premises prior to the
commencement of the Term of this Sublease or which existed at the commencement of the Term
of this Sublease and worsened through no fault of Sublessee thereafter. In addition,
Sublessee shall not be obligated to take actions to prevent such worsening of
contamination which existed at the commencement of this Sublease. Lessee shall indemnify
Sublessee and hold Sublessee harmless from any and all liability, claim, injury, damage,
penalty, or cost, (including reasonable attorney’s fees) arising out of third party
claims or assertions resulting from any hazardous substances existing on the Premises as
of the Commencement Date. The terms of this Section shall survive the expiration or
termination of this Sublease. 

E-58 

10. ALTERATIONS.
Sublessee shall not make, or suffer to be made, any alterations of the Premises, or any
part thereof, without the written consent of Landlord, which consent shall not be
unreasonably withheld. 

11. SIGNS AND PARKING.
Sublessee shall have the right to use the parking area which is part of the Premises.
Sublessee, at its discretion, may erect such signs as it deems necessary or appropriate,
so long as the same comply with the Lease. 

12. QUIET ENJOYMENT.
Lessee represents that it has full power and authority to enter into this Sublease. So
long as Sublessee is not in default in the performance of its covenants and agreements in
this Sublease, Sublessee’s quiet and peaceable enjoyment of the Premises shall not be
disturbed or interfered with by Lessee, or by any person claiming by, through, or under
Lessee or under Landlord pursuant to the terms of the Lease. 

13. SUBLESSEE’S
INSURANCE. As of the date hereof, Sublessee shall procure and maintain, at its own cost
and expense, such liability insurance as is required to be carried by Lessee under the
Lease, naming Lessee, as well as Landlord as (additional) insureds, in the manner required
therein and such property insurance as is required to be carried by Lessee under the Lease
to the extent such property insurance pertains to the Premises. Sublessee shall furnish to
Lessee a certificate of Sublessee’s insurance required hereunder prior to
Sublessee’s taking possession of the Premises. 

14. ASSIGNMENT OR
SUBLETTING. Sublessee shall not assign this Sublease or sublet the Premises or any part
thereof, without the written consent of the Lessee and the Landlord, but said consent
shall not be unreasonably withheld provided Sublessee remains liable under this Sublease
despite such assignment or sublease. 

15. REPAIRS. Lessee
hereby represents and warrants that as of the Branch Opening Date, the Premises and
improvements thereon shall be structurally sound and in good repair. Subject to Section
9 above, commencing on the Branch Opening Date, Sublessee shall assume, at its own
cost and expense, such repair and maintenance obligations of Lessee as set forth in the
Lease. 

16. FIRE OR CASUALTY
OR EMINENT DOMAIN. In the event of a fire or other casualty affecting the Premises, or of
a taking of all or a part of the Premises under the power of eminent domain, Lessee shall
not exercise any right which may have the effect of terminating the Lease without first
obtaining the prior written consent of Sublessee. In the event Lessee is entitled, under
the Lease, to a rent abatement as a result of a fire or other casualty or as a result of a
taking under the power of eminent domain, then Sublessee shall be entitled to such rent
abatement. 

17. SURRENDER.
Subject  to Sections 9, 15 and 16 hereof, upon the expiration of this Sublease, or
upon the  termination of the Sublease or of the Sublessee’s right to possession of
the  Premises, Sublessee will at once surrender and deliver up the Premises, together
with all  improvements thereon, to Lessee in good condition, reasonable wear and tear
excepted.  Sublessee shall surrender to Lessee all keys to the Premises and make  

E-59 

known to Lessee the
explanation of all combination locks which Sublessee is permitted to leave on the
Premises. 

18. REMOVAL OF
SUBLESSEE’S PROPERTY. Upon the expiration of this Sublease, Sublessee shall removal
Sublessee’s articles of personal property incident to Sublessee’s business;
provided, however, that Sublessee shall repair any injury or damage to the Premises which
may result from such removal, and shall restore the Premises to the same condition as
prior to the installation thereof except reasonable wear and tear. 

19. HOLDING OVER.
Sublessee shall have no right to occupy the Premises or any portion thereof after the
expiration of this Sublease or after termination of this Sublease or of Sublessee’s
right to possession in consequence of an Event of Default hereunder. In the event
Sublessee or any party claiming by, through or under Sublessee holds over, Lessee may
exercise any and all remedies available to it at law or in equity to recover possession of
the Premises, and to recover damages, including without limitation, damages payable by
Lessee to Landlord by reason of such holdover. For each and every month or partial month
that Sublessee or any party claiming by, through or under Sublessee remains in occupancy
of all or any portion of the Premises after the expiration of this Sublease or after
termination of this Sublease or Sublessee’s right to possession, Sublessee shall pay,
as liquidated damages and not as a penalty, monthly rental at a rate equal to the Rent
payable by Sublessee hereunder immediately prior to the expiration or other termination of
this Sublease or of Sublessee’s right to possession. 

20. ENCUMBERING TITLE.
Sublessee shall not do any act which shall in any way encumber the title of Landlord in
and to the Premises, nor shall the interest or estate of Landlord or Lessee be in any way
subject to any claim by way of lien or encumbrance, whether by operation of law by virtue
of any express or implied contract by Sublessee, or by reason of any other act or omission
of Sublessee. Any claim to, or lien upon, the Premises arising from any act or omission of
Sublessee shall accrue only against the subleasehold estate of Sublessee and shall be
subject and subordinate to the paramount title and rights of Landlord in and to the
Premises and the interest of Lessee in the premises leased pursuant to the Lease. Without
limiting the generality of the foregoing, Sublessee shall not permit the Premises to
become subject to any mechanics’, laborers’ or materialmen’s liens on
account of labor or material furnished to Sublessee or claimed to have been furnished to
Sublessee in connection with work of any character performed or claimed to have been
performed on the Premises by, or at the direction or sufferance of Sublessee. 

21. DEFAULTS.
Sublessee further agrees that any one or more of the following events shall be considered
Events of Default as said term is used herein, that is to say, if: 

	 	A.  	 Sublessee
shall be adjudged an involuntary bankrupt, or a decree or order approving, as  properly
filed, a petition or answer filed against Sublessee asking reorganization of  Sublessee
under the Federal bankruptcy laws as now or hereafter amended, or under the laws  of any
State, shall be entered, and any such decree or  

E-60 

	 	judgment
or order shall not have  been  vacated or stayed or set aside within sixty (60) days from
the date of the entry or  granting thereof, or  

	 	B.  	 Sublessee
shall file, or admit the jurisdiction of the court and the material allegations
contained in any petition in bankruptcy, or any petition pursuant or purporting to be
pursuant to the Federal bankruptcy laws now or hereafter amended, or Sublessee shall
institute any proceedings for relief of Sublessee under any bankruptcy or insolvency laws
or any laws relating to the relief of debtors, readjustment of indebtedness,
reorganization, arrangements, composition or extension; or  

	 	C.  	 Sublessee
shall make  assignment  for the benefit of creditors or  shall apply for or consent to
the  appointment  of a receiver  for  Sublessee or any of the property of Sublessee; or 

	 	D.  	 Sublessee
shall admit in writing its  inability  to pay its debts  as they become due; or 

	 	E.  	 The
Premises  are  levied on by any  revenue  officer  or similar  officer; or 

	 	F.  	 A
decree  or order  appointing  a  receiver  of the  property  of  Sublessee  shall be made
and such  decree or order  shall not have  been vacated,  stayed or set aside within
sixty (60) days from the  date of entry or granting thereof; or 

	 	G.  	 Sublessee
shall abandon the Premises during the Term hereof; or 

	 	H.  	 Sublessee
shall  default in any  payment of Rent  required  to be  made by Sublessee  hereunder
when due as herein  provided and such  default shall  continue for three (3) days after
notice thereof in  writing to Sublessee; or 

	 	I.  	 Sublessee
shall by, its act or omission  to act,  cause a default  under the Lease and such
default  shall not be cured  within  the  time, if any permitted for such cure under the
Lease; or 

	 	J.  	 Sublessee
shall default in any of the other covenants and agreements herein contained to  be kept,
observed and performed by Sublessee, and such default shall continue for ten (10)  days
after notice hereof in writing to Sublessee.  

22. REMEDIES. Upon the
occurrence of any one or more Events of Default, Lessee may exercise any remedy against
Sublessee which Landlord may exercise for default by Lessee under the Lease. 

E-61 

23. NOTICES AND
CONSENTS. All notices, demands, requests, consents or approvals which may or are required
to be given by either party to the other shall be in writing and shall be deemed given
when received or refused if sent by United States registered or certified mail, postage
prepaid, return receipt requested or if sent by overnight commercial courier service (a)
if to Sublessee, addressed to Sublessee at the address specified in Section
1(B), or at such other place as Sublessee may from time to time designate
by notice in writing to Lessee, or (b) if for Lessee, addressed to Lessee at the address
specified in Section 1(C), or at such other place as Lessee may from
time to time designate by notice in writing to Sublessee. Each party agrees promptly to
deliver a copy of each notice, demand, request, consent or approval from such party to
Landlord and promptly to deliver to the other party a copy of any notice, demand, request,
consent or approval received from Landlord. Such copies shall be delivered by certified or
registered mail, return receipt requested. Sublessee may rely upon any notice, consent or
approval given in writing by Lessee’s agent or attorney. 

24. PROVISIONS
REGARDING SUBLEASE. This Sublease and all the rights of parties hereunder are subject and
subordinate to the Lease. Each party agrees that it will not, by its act or omission to
act, cause a default under the Lease. Accordingly, in order to afford to Sublessee the
benefits of this Sublease and of those provisions of the Lease which by their nature are
intended to benefit the party in possession of the Premises, and in order to protect
Lessee against a default by Sublessee which might cause a default or event of default by
Lessee under the Lease: 

	 	A.  	 Lessee
shall perform its covenants and obligations under the Lease which do not require  for
their performance possession of the Premises and which are not otherwise to be  performed
hereunder by Sublessee on behalf of Lessee.  

	 	B.  	 Lessee
shall not agree to  amendment  to the Lease  unless  Lessee  shall first obtain
Sublessee’s prior written approval thereof. 

	 	C.  	 Lessee
hereby grants to Sublessee the right to receive all of the services and benefits  with
respect to the Premises which are to be provided by Landlord under the Lease. Except  as
provided in the Lease, Lessee shall have no duty to perform any obligations of Landlord
which are, by their nature, the obligation of owner or manager of real property. Lessee
shall have no responsibility for or be liable to Sublessee for any default by Landlord of
any of its obligations under the Lease, nor shall such default by Landlord affect this
Sublease or waive or defer the performance of any of Sublessee’s obligations
hereunder except to the extent that such default by Landlord excuses performance by
Lessee, under the Lease. Notwithstanding the foregoing, the parties contemplate that
Landlord shall, in fact, perform its obligations under the Lease and in the event of any
default or failure of such performance by Landlord, Lessee agrees that it will, upon
notice from Sublessee, make demand upon Landlord to perform its obligations under the 

E-62 

	 	Lease
and, provided that Sublessee specifically agrees to pay all costs and expenses of  Lessee
and provides Lessee with security reasonably satisfactory to Lessee to pay such  costs
and expenses, Lessee will take appropriate legal action to enforce the Lease.  

25. DEFAULT BY LESSEE.
If at any time during the Term hereof, Lessee shall default in any of its obligations
under this Sublease or the Lease, Sublessee may give written notice to Lessee of its
intention to terminate the Sublease together with a statement of the nature of such
default, and such termination shall become effective on the thirtieth (30th) day after the
date of such notice unless such default shall be cured within thirty (30) days after such
notice. 

26. BROKERAGE. Each
party warrants to the other that it has had no dealings with any broker or agent in
connection with this Sublease. 

27. FORCE MAJEURE.
Neither party shall be deemed in default with respect to any of the terms, covenants and
conditions of this Lease on their part to be performed, if their failure to timely perform
same is due in whole or in part to any strike, lockout, labor trouble (whether legal or
illegal), civil disorder, failure of power, restrictive governmental laws and regulations,
riots, insurrections, war, acts of terrorism, shortages, accidents, casualties, acts of
God, delays caused by the other party or its agents, employees and invitees, or any other
cause beyond such party’s reasonable control. 

28. OPTION FOR
EXTENDED TERM. Provided Sublessee is not in default under the terms and provisions hereof,
the term of this Lease may be extended, at the option of Sublessee for the three (3)
additional terms of one year (1) each as set forth in Section 36 of the Lease. In
the event Sublessee gives Lessee written notice of Sublessee’s desire to extend the
term of the Lease not less than sixty-five (65) days immediately prior to the expiration
of the then expiring term, Lessee shall timely deliver notice to Landlord of its desire to
exercise the option to extend the term as set forth in Section 36 of the Lease.
Such extended term hereunder shall be upon the same terms, covenants and conditions as
provided in this Sublease except that the Rent payable hereunder for such extended term
shall be equal to the amount payable to Landlord pursuant to Section 36 of the
Lease. 

29. TERMINATION.
Notwithstanding anything contained herein to the contrary, the Term of this Sublease shall
terminate upon the first to occur of the following: 

	 	 
        a)
The mutual written consent of Lessee and Sublessee; 

	 	 
        b) In
the event of the termination of the Branch Development Agreement, Sublessee may, in its
sole discretion, terminate this Sublease upon written notice to Lessee in accordance with
Section 23 hereof; or 

	 	 
        c)
Upon the closing of the sale of the branch to be located at the Premises pursuant to that
certain option set forth in Section 13 of the Branch Development Agreement. 

E-63 

30. MISCELLANEOUS
PROVISIONS. 

 
        a)
The captions appearing in this Sublease are inserted only as a matter of convenience and
in no way define, limit, or affect the scope or intent of such Paragraphs or Sections of
this Sublease. Any gender used herein shall be deemed to refer to any other gender. The
use of singular herein shall be deemed to include the plural and, conversely the plural
shall be deemed to include the singular. 

 
        b)
Time is of the essence in this agreement. 

 
        c) This
agreement shall be construed and interpreted under the laws of the State of South
Carolina. 

 
        d)
Nothing herein contained shall be deemed to require the Sublessee to pay or discharge any
liens or mortgages of any character whatsoever which may be placed upon the Subleased
Premises by the act of the Lessor, or to perform or pay for any of Lessor’s
obligations herein. 

31. LANDLORD’S
CONSENT. Lessee and Sublessee hereby agree that this Sublease and Landlord’s consent
hereto shall not: (a) create privity of contract between Landlord and Sublessee, or (b) be
construed as a waiver of Landlord’s right to consent to any assignment of the Lease
by Lessee or any further subletting of Premises pursuant to the Lease, or as a waiver of
Landlord’s right to consent to any assignment by Sublessee of this Sublease or any
subletting of the Premises or any part thereof. 

 
        The
parties have executed this Sublease as of the day and year first above written. 

	 	LESSEE: 

	 	NUEVO
LATINO  INVESTMENT  COMPANY,  LLC,  a  South  Carolina  limited  liability company 

	 	By:  	 /s/
MIGUEL BANDA (SEAL)  

	 	 	Name:
Title:	Miguel
Banda
Member,  Chairman  of  the Board 

	 	SUBLESSEE: 

	 	CAPITALBANK,
a  South  Carolina  banking corporation 

	 	By:  	/s/
WILLIAM G. STEVENS (SEAL)  

	 	 	Name:
Title:	William
G. Stevens
President  and  Chief  Executive Officer 

[LANDLORD’S
CONSENT ATTACHED] 

E-64 

LANDLORD’S
CONSENT 

 
        1.
The  undersigned  Landlord  hereby  consents to this Sublease in accordance  with the
terms and conditions thereof. 

 
        2.
Landlord hereby agrees that a copy of all notices sent to Lessee pursuant to the Lease
shall simultaneously be sent to Sublessee at the address set forth in Section
1(B). 

	 	LANDLORD: 

	 	/s/
JACK E. SHAW (SEAL)  

	 	Jack
E. Shaw 

Date:  August 15, 2002 

E-65 

EXHIBIT A 

LEASE AGREEMENT 

	STATE OF SOUTH CAROLINA 	) 
	 	  
	COUNTY OF GREENVILLE	) 

This Lease Agreement,
made this 15TH day of August, 2002 between Jack E. Shaw (hereinafter called
Lessor) and Nuevo Latino Investment Company, LLC (hereinafter called Lessee). 

1. Lessor agrees to
lease to Lessee and. Lessee agrees to lease the premises situated in the County of
Greenville and the State of South Carolina, and more specifically described as follows: 

	 	2520
Wade Hampton Boulevard
Greenville, S.C. 29615  

for a term of three
(3) years beginning on the 1st day of October, 2002, and ending on the
30th day of September, 2005. 

2. Base rent for the
premises, which Lessee agrees to pay, shall be at the annual rate of Forty Two Thousand
and no/100 ($42,000.00) Dollars. Rent is payable in advance on the first day of each
month, in equal monthly installments of Three Thousand Five Hundred and no/100 ($3,500.00)
Dollars to the office of Jack E. Shaw, Post Office Box 5835, Greenville, SC 29606. 

3. Premises shall be
used for the purpose of a bank and no other. Lessee agrees not to use premises for any
illegal purposes, to violate any regulation of any governmental body or to create any
nuisance or trespass to others. 

4. All taxes,
assessments and charges on land and improvements upon the demised premises shall be
promptly paid as follows: 

		Year One -		Lessee to pay 1/2 and Lessor to pay 1/2 of total amount due. 
		Year Two -		Lessee 
		Year Three -		Lessee 

Lessee shall reimburse
Lessor within thirty (30) days after receipt of written notice, its proportionate share of
said taxes and assessments. Past due payments shall accrue interest at the rate of 1.5%
per month. 

E-66 

5. (a) All premiums
for fire and extended coverage insurance shall be promptly paid as follows: 

		Year One -		Lessee to pay 1/2 and Lessor to pay 1/2 of total amount due. 
		Year Two -		Lessee 
		Year Three -		Lessee 

Lessee shall reimburse
Lessor within thirty (30) days after receipt of written notice, its proportionate share of
said fire and extended coverage insurance. Past due payments shall accrue interest at the
rate of 1.5% per month. 

 
        (b)
Lessee shall carry at its own expense and pay all premiums for insurance to cover its
personal property, trade fixtures and merchandise contained within the structure. Lessee
will also carry and keep in force a policy of comprehensive public liability insurance,
including property damage, with respect to the leased premises. This policy shall provide
at least the following limits: not less than Five Hundred Thousand Dollars ($500,000.00)
in respect to one injury and in respect to any one accident. In addition to the Lessee,
the policy shall also name the Lessor as an additional insured at the cost of the Lessee.
Lessee shall, upon demand, deliver to the Lessor from time to time a certificate or other
evidence that this public liability insurance coverage is being maintained by the Lessee. 

 
        (c)
With regard to the insurance coverage to be maintained by the Lessor as set forth in 5(a)
above, if the Lessee, by reason of its use of the premises, cause an increase in the
insurance rates of the Lessor, Lessee will compensate the Lessor by paying additional rent
to equal the amount of the increase in the rate caused by the Lessee’s use. This
amount shall be due and payable to the Lessor on the first day of the month immediately
following any such increase. In any such instance, however, the Lessee will be given the
opportunity to eliminate the rate increase, if it is possible to do so, by complying with
recommendations of the Lessor, Lessor’s agent, Lessor’s insurance company, or
any other authorized regulatory body. 

6. The Lessee agrees
to pay all charges for electricity, gas, heating, fuel, water, sewer service charges and
any other utility charges used in the premises. 

7. It is understood
and agreed that upon execution of this lease, Lessor will grant permission for Lessee to
sublease to an FDIC insured financial institution. It is understood and agreed that the
above financial institution will forward the monthly lease payments directly to the
Lessor. 

 
        The
Lessee, nevertheless, shall remain responsible to Lessor under all terms and conditions of
this lease including, among other responsibilities and without limiting such
responsibilities, the obligation to pay to the Lessor the difference between the rent due
under the terms of this lease and any lesser amount due under the provisions of the
sub-lease or assignment. 

E-67 

 
        All
notices given to Lessee shall also simultaneously be given to Sub-lessee at: 

	 	
Att:  William G. Stevens

1402-C Highway 72

Post Office Box 218

Greenwood, SC 29649 

8. Lessee agrees that
it has examined and is familiar with the condition of the premises and will accept the
premises in its present state of condition and repair unless otherwise agreed upon in this
lease. See Section 38, Additional Provisions. 

9. Possession to take
place upon full execution of Lease Agreement. 

10. The Lessee may
make minor alterations without first receiving written permission from Lessor. Any major
cosmetic and all structural changes must have written permission from Lessor. All
additions, including but not limited to, carpet, tile, wall covering, ceiling tile,
shelving, partitioning, doors, and fixtures will become part of the leased premises and
will remain intact at the end of this lease. 

 
        Store
and office furniture and trade fixtures which are readily removable without injury to the
premises may be removed at the end of this lease provided all other conditions of the
lease have been satisfied. Any injury to the floors, walls or ceilings caused by removal
of such trade fixtures will be repaired at the Lessee’s expense by the Lessee at the
time that such trade fixtures are removed. 

11. The Lessor agrees
to maintain the structural components of the building to include the roof, foundations,
and exterior walls (exclusive of glass, plate glass doors, and door mountings). Lessor is
under no obligation to inspect the premises to find defects. Lessee will within a
reasonable time report to the Lessor any defective condition known to Lessee which the
Lessor is required to repair. Failure to report such defects shall make Lessee responsible
to Lessor for any liability incurred by Lessor by reason of such defect. 

12. The Lessee agrees
to keep and maintain the premises at its sole expense in a good state of condition and
repair except those items referred to in paragraph 11. The Lessee also agrees to keep all
fixtures pertaining to the heating*, air conditioning*, ventilating, electrical, plumbing,
and sprinkler systems (if any) in good order and repair at its sole expense. It is
understood that there will be no default as long as Lessee begins any maintenance
obligations (repairs) within 10 days after written notice is given by Lessor. *Lessee must
have a maintenance contract in place with at least two service calls per calendar year. As
long as maintenance contract is in place, Lessor will be responsible for major heating or
air conditioning repairs (replacing compressor or fan motor). 

 
        The
Lessee also agrees to re-decorate, paint, and renovate the premises as may be necessary to
keep them in proper condition and good appearance. If any portion of the leased premises
is on the ground level, the Lessee agrees to keep the sidewalks on front of the ground
level portion clean and free of obstruction. 

E-68 

 
        The
Lessee agrees to return the premises at the end of the lease term in at least as good
condition as premises were when first leased, normal wear and tear accepted. 

13. The Lessee may
place or attach to the premises signs or other such identification as needed. Any signs or
other form of identification allowed must conform to City or County ordinances governing
at the time. 

 
        Any
damage caused to the premises by the Lessee’s erecting or removing such signs will be
repaired promptly by the Lessee at the Lessee’s expense. 

 
        The
Lessee also agrees to have any window or glass identification completely removed and
cleaned at its expense promptly upon vacating the premises. 

14. The Lessor will
give Lessee at least one key to the premises at the beginning of this lease. The Lessee
agrees to account for all keys provided or duplicated and to return all keys to Lessor at
once at the end of the lease period. The Lessee agrees that the Lessor or his Agent may
keep a master key or passkey to the premises in accordance with paragraph 22 of this
lease. When the premises were leased, one (1) key was given to the Lessee. 

15. All personal
property moved into the premises by the Lessee shall be at the risk of the Lessee or the
owners of the personal property. The Lessee agrees that the Lessor shall not be liable for
any damage, loss, or theft of personal property from any cause. 

16. N/A 

17. The Lessee agrees
not to abandon or vacate the premises during the period of this lease without the
Lessor’s prior written approval. 

18. The Lessee agrees
to pay rent at the time, in the amount, and in the manner as agreed upon in Paragraph 2 of
this lease. The Lessee also agrees that rent shall be due at the specified time without
any notice, bill, reminder, or demand from the Lessor or the Lessor’s Agent. 

 
        It
is mutually agreed that any one or more of the following enumerated events shall
constitute and be referred to as a “Default”: 

 
        (a)
Any failure by Lessee to pay rent to Lessor within three (3) days after Lessee’s
receipt of written notice from Lessor. 

 
        (b)
In the event Lessee pays any rent charge, fee or other amount due under the terms of this
lease later than the fifth day after the date when due, Lessee shall pay, as additional
rent, Fifty Dollars ($50.00). For each day after the fifth day such payment is in arrears,
an additional amount of Ten Dollars ($10.00) shall be paid to Lessor as additional rent.
This provision shall not prevent Lessor from exercising any other remedy herein provided
in the event of any default by Lessee. 

E-69 

 
        (c)
If the Lessee fails to perform any of the terms or provisions of this lease other than
paying rents when due, and fails to cure such default within ten (10) days after receiving
written notice of default from the Lessor or the Lessor’s Agent; or 

 
        (d)
If the Lessee is declared bankrupt or insolvent by judicial decree; or 

 
        (e) If
the Lessee takes the benefit of any federal reorganization or composition proceedings; or 

 
        (f)
If the Lessee makes a general assignment for benefit or creditors; or 

 
        (g) If
the Lessee’s leasehold interest in this lease is sold under any process of law; or

 
        (h)
If a trustee in bankruptcy or a receiver is appointed or elected for the Lessee; or 

 
        (i)
If the Lessee abandons the premises; or 

 
        (j) If
any materialman’s mechanic’s, or other lien is filed against the leased premises
in connection with any improvements, alterations, or additions made by Lessee pursuant to
paragraph 10 of this lease and the Lessee is responsible for the cost of the improvements,
alterations, or additions but allows the lien or liens to stand against the leased
premises and does not secure the discharge of the property from such liens by filing an
appropriate bond pursuant to applicable law. If Lessee does file a bond and elects to
contest the liens, there shall be no default pending final determination of such disputed
matter; then, and in any of the above events, the Lessor at its option may at once
terminate this lease by giving written notice to the Lessee. (Notice to terminate in any
of the above events may also be given by the Lessor’s attorney or agent.) 

 
        Upon
such termination by the Lessor, the Lessor or its Agents shall have the right to enter the
premises, by force if necessary without being liable for trespass, forcible entry or other
tort, to re-take possession of the premises, remove all persons and personal property from
the Lessee if the Lessor so desires, and to place a “For Rent” or “For
Lease” sign in a place where the sign would be most likely seen by the public. 

 
        If
termination occurs under any of the above events, the Lessee agrees to grant to the Lessor
a lien (in addition to any statutory lien or right to distress that may exist) on all of
Lessee’s personal property in or around the premises to secure payment of rent and
performance of the other conditions of this lease which are in default. 

 
        In
the event this Lease shall be terminated by summary proceedings or otherwise, or if the
premises shall have been abandoned, or whether or not the premises have been relet, the
LESSOR shall be entitled to recover from the LESSEE, in addition to any damages which may
be provided by law, the following: 

	 	AN
AMOUNT EQUAL TO ALL EXPENSES, IF ANY, INCLUDING REASONABLE ATTORNEY’S FEES, INCURRED
BY THE LESSOR  

E-70 

	 	IN
RECOVERING POSSESSION OF THE PREMISES, AND ALL REASONABLE COSTS AND  CHARGES FOR THE CARE
OF THE PREMISES WHILE VACANT.  

19. In the event of a
default as described in paragraph 18 above, then Lessor, besides any other rights or
remedies it may have, may at Lessor’s option (a) declare the full rental for the
entire term immediately due and payable without prejudice to any other remedies in law or
equity available to Lessor, or (b) have the immediate right to re-entry and take
possession of the demised premises immediately and to hold the premises with the full
right to recover front the Lessee all past due rents and any and all damages, including
attorney’s fees, as a result of the default. Lessor upon re-entry, may remove all
persons and property and store all property in a public warehouse or elsewhere at the cost
and for the account of the Lessee. Additionally, the Lessor shall be able to utilize all
other rights and remedies available to Lessor under the laws of the State of South
Carolina. 

20. Should Lessee
default as set out in paragraph 18, Lessor may elect to re-enter the leased premises and
attempt to re-let the premises. Lessor’s only responsibility shall be to offer the
premises for rent and make the usual and normal efforts to re-let the premises. Lessee
shall be liable for any deficiency between the amount of rental received, if any, and the
amount which the Lessee is obligated to pay under this lease and for any other damages,
including attorney’s fees, suffered by Lessor. 

21. In addition to
Lessor’s right to re-enter and relet the premises, Lessor may elect, upon a default,
to terminate this Lease Agreement immediately. In such event, this lease shall be regarded
as canceled as of the date the Lessor serves notice of Lessor’s election to terminate
to Lessee. Lessee shall remain liable to Lessor for all rentals, charges and payments
accrued to the time of such termination. 

 
        The
Lessor’s right to terminate this lease is in lieu of and not in addition to any other
rights or causes of action that Lessor may have against the Lessee because of a default by
the Lessee. If Lessor does not elect to terminate the lease as above provided, then Lessor
shall utilize and pursue such other rights as it may have against the Lessee under other
terms of this lease, the laws of the United States or the City, County and State in which
the leased premises are located. 

22. The Lessee shall
notify the Lessor or its agent at once in the event of any fire or other casualty to the
leased premises. 

 
        If
the leased premises be totally destroyed by fire or other casualty or damaged to such an
extent that they become wholly unfit for occupancy under existing building codes and
regulations, then this lease may be terminated by either party by giving written notice
within thirty (30) days after the occurrence of such fire or other casualty. 

 
        If
the leased premises, however, are damaged by fire or other casualty but may be repaired
within ninety (90) days from the date of the damage (it being agreed that if such
rebuilding or repairs cannot be completed within the ninety (90) day period) but the
Lessor commenced the rebuilding or repair work without unreasonable delay within the 

E-71 

ninety (90) day
period and completes the rebuilding or repair with due diligence, such  damage shall be
deemed rebuilt or repaired within the ninety (90) day period, then the  Lessor may notify
the Lessee within thirty (30) days of the date of the fire or other  casualty of its
intention to rebuild or make such repairs and may enter the premises as  quickly as
reasonably possible. In this event rent shall not be due while such rebuilding  or repair
work is being performed, but shall resume again as soon as the rebuilding or  repairs are
completed.  

 
        It
is agreed that if the premises are damaged only slightly due to fire or other casualty and
still fit for occupancy (does not interfere with normal business operations), the Lessor
shall repair the damage as quickly as reasonably possible and the Lessee shall continue to
pay rent and uphold all other lease provisions. 

 
        The
Lessee agrees not to claim any compensation from the Lessor or the Lessor’s insurance
company because of any inconvenience, annoyance or business interruption arising from the
damage, repair, rebuilding, or alteration of any portion of the building. 

23. Lessor indemnifies
and holds Lessee harmless (prior to lease commencement) from and against any loss, cost,
damage or expense arising out of or relation to any environmental hazard on the property
unless due to act or omission of current Lessee. Lessee hereby indemnifies and holds
Lessor harmless from and against any loss, cost, damage or expense arising out of or
relating any environmental hazard on the property due to the act or omission of the
Lessee. 

24. If the whole or
any part of the property of which the leased premises are a part shall be condemned, taken
by court decree or taken by any other lawful authority (including the power of eminent
domain), the Lessee shall have no claim or interest in any award or damages or other
compensation for such taking. 

25. The Lessee, at its
sole expense, agrees to observe and comply with all laws, ordinances, rules and
regulations of the Federal, State, County and Municipal authorities as may apply to the
business conducted by the Lessee on the premises. 

26. The Lessee agrees
that the Lessor may card the premises “For Sale” at any time and “For
Rent” or “For Lease” sixty (60) days prior to the end of this lease. The
Lessor may enter the premises at reasonable hours to show same to prospective purchaser or
Lessees and to make repairs required of Lessor under the terms of this lease, or to make
repairs to Lessor’s adjoining property if any. 

27. The Lessee agrees
that its rights are subordinate and subject to any bonafide mortgage which now covers the
premises or to any bonafide mortgage which may be placed on the premises any time in the
future by the Lessor and will sign any Lease Subordination Agreement or Estoppel Agreement
at the Lessor’s request. 

28. The Lessee agrees
that no waiver of any condition of this lease by the Lessor whether implied or in writing
shall constitute any further waiver by the Lessor of any other condition of this lease.
The rights and remedies created by this lease are cumulative and the use of one remedy
does not exclude or waiver the right to the use of another. 

E-72 

29. It is agreed that
the use of the leased premises is subject to any applicable zoning ordinances or
regulations and set back lines of any governmental authority. 

30. Time is of the
essence of this agreement. 

31. It is agreed that
all notices regarding this lease shall be sent by certified or registered mail to: 

	 	(a)  	 Notice
to Lessor: 

	 	
Jack E. Shaw

Post Office Box 5835

Greenville, South Carolina 29606 

	 	(b)  	 Notice
to Lessee: 

	 	
Miguel Banda

c/o James L. Ropers, Jr.

300 E. McBee Ave., Suite 500

Greenville, South Carolina 29602

(864)242-6440

EIN #01-0676341

32. The Lessee agrees that
Lessee will pay all liens of contractors, sub-contractors, machinist, laborers,
materialmen, and other like items and will indemnify Lessor against all legal costs and
charges, bond premiums for release of liens, including legal counsel fees reasonably
incurred in and about the defense of any suit in discharging the said premises or any part
from any liens, judgments, or encumbrances caused by Lessee. 

33. Subject to the
conditions of this lease, the Lessor agrees that the Lessee may peaceably have, hold and
enjoy the premises, without hindrance by Lessor or Lessor’s Agent. 

34. This lease
contains the entire agreement between the parties. It may be modified only by an agreement
in writing signed by Lessor and Lessee. 

35. The marginal
captions contained here are for convenience and reference only and are not a part of this
lease or to be constructed as in any manner limiting or amplifying the terms and
provisions of this lease. 

36. This lease shall
bind and have effect to the benefit of the parties named and their respective heirs,
executors, administrators, successors and assigns. 

37. Lessee will grant
to Lessor three (3) one (1) year options. All terms and conditions of the original lease
will remain in effect except the rental rate will be as follows: 

E-73 

		Year One -		
$3,769.12 per month (2 1/2% per year over base year of 9/1/02-8/310/3
		Year Two -		
$3,863.35 per month (2 1/2% per year over prior year)
		Year Three -		
$3,959.93 per month (2 1/2% per year over prior year)

Each option shall be
exercised by written notice to the Lessor at least 60 days before the expiration of the
then current period of the lease. 

38. Lessee shall pay
all costs of utility services charged and/or assessed by Greenville Water Systems and
Western Carolina Regional Sewer Authority. 

39. Prior to lease
commencement, Lessor will: 

	 	(i)  	 Patch
pothole in parking lot. 

	 	(ii)  	 Stripe
parking lot. 

	 	(iii)  	 Replace
the damaged ceiling tile inside. 

	 	(iv)  	 Check/replace
bulbs in parking lot lights. 

	 	(v)  	 Trim
tree limbs away from parking lot lights. 

	 	(vi)  	 Cut
overgrowth in vacant lot beside bank building. 

40. The Lessor agrees
to provide and maintain the necessary water supply to the demised premises. The Lessee
agrees to pay to the Lessor the minimum charges for typical services established by the
proper regulating authorities for water and sewer in effect from time to time. 

41. Any rent payment
returned by Agent by Bank for insufficient funds or other like reason will incur an
additional charge of Twenty-five Dollars ($25.00). Repeated occurrences will upon
notification require rent payments to be made by cashiers check or money order only.
Additionally, this will be a breach of the covenants, agreements and conditions on the
part of the Lessee. 

42. Lessee,
contemporaneously with the execution of this lease, has deposited with the Lessor the sum
of Three Thousand Five Hundred and no/100 ($3,500.00) Dollars receipt-of which is hereby
acknowledged by the Lessor as security for the full and faithful performance by the
Lessee  of all the terms, covenants and conditions of this lease upon the Lessee’s
part to be  performed, and said sum shall be returned to the Lessee after the time fixed
as the  expiration date of the term hereof, provided the Lessee has fully and  

E-74 

faithfully carried
out all of said terms, covenants and conditions on Lessee’s part to be performed. 

43. If the Lessee
holds over and continues in possession at the conclusion of the lease term, or any
extension of the term, without any written agreement as to such possession, Lessor shall
agree to such possession by acceptance of additional monthly payments and Lessee shall be
considered a Lessee from month to month at a rental amount equal to last payment made
under the terms of the written lease or option period and shall be subject to all other
terms and conditions of this lease. Such tenancy may be terminated by either party upon
the giving of thirty (30) days notice in writing to the other party. 

44. In the event any
provision of this lease is declared or determined to be invalid under the laws governing
this lease, the remaining terms and conditions shall remain in full force and effect and
shall be binding on the parties hereto. 

45. Rules and
Regulations attached hereto are an integral part of this Lease Agreement. 

IN WITNESS WHEREOF,
the parties named herein have set their hands and seals the year and day first above
written. 

	

 	 	/s/ JACK E.SHAW

LESSOR:  Jack E. Shaw 	 
	/s/ ANNE BOUCHILLON

Witness to Lessor 	 	 	 
	 	 	Nuevo Latino Investment Co., LLC 	 
	  
	

 	 	/s/ MIGUEL BANDA

LESSEE:  Miguel Banda, President 	 
	/s/ W. WALTER WALLER

Witness to Lessee 	 	 	 

 
        NOTE:
This  is a  legally  binding  contract;  if  not  completely  understood,  we  recommend
you seek competent advice from your attorney. 

E-75 

RULES AND REGULATIONS 

The Lessee agrees to
abide by the following Rules and Regulations: 

 
        (1)
The sidewalks, roadways, and other public portions of the property shall be used by the
Lessee for the purpose of ingress and egress to and from the Premises so demised to the
Lessee. 

 
        (2)
All waste paper, refuse, and garbage shall be kept by Lessee in metal dumpsters, to be
located at the rear of the Property. 

 
        (3)
The Lessee shall keep the exterior and interior portions of the building, all windows,
doors, and all other glass or- plate fixtures in a clean condition. 

 
        (4)
The Lessee shall not keep or permit to be kept on the Premises any inflammable or
combustible fluid, chemical, or explosives. 

 
        (5)
The Lessee shall not hold any auction, fire, or bankruptcy sale in the Demised Premises. 

 
        (6) The
Lessee shall conduct their business in an orderly manner. The Lessee shall not permit
noises from the use of any radios, televisions, loud speakers, talking machines,
phonographs, or other instruments to reach outside the Premises. 

 
        (7)
The plumbing facilities shall be used for the purposes for which they have been
constructed, and no foreign substance of any kind shall be thrown therein. The expense of
any breakage, stoppage, or damage resulting from a violation of this provision caused by
any Lessee, its employees, agents, or invitees shall be borne by such Lessee. 

 
        (8)
The Lessor reserves the right to amend, rescind, or waive any of the Rules or Regulations
listed above, and further to make such other reasonable rules and regulations as may from
time to time seem necessary or desirable for the best interests of the property and any
such other and further rules and regulations shall be binding upon the Lessee, with the
same force and effect as if they had been set forth herein at the time of the execution of
the within Lease. 

 
        (9)
Lessee shall not burn any trash or garbage of any kind in or about the Premises, or the
tract or areas adjacent thereto. 

 
        (10)
Lessee shall not commit any waste upon the premises nor create nuisance nor cause or
permit objectionable odors to emanate or be dispelled from the Premises. 

 
        (11)
Lessee shall use, maintain and occupy the Premises and appurtenances thereto in clean,
orderly, careful, safe, proper and lawful manner. 

E-76 

Note:  Any changed or
amended  rules or  regulations  will not affect the quiet  enjoyment or  business
purposes of the leased premises. 

E-77

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