Lease Agreement/09-01-97/ D.m. Boyd

LINCOLN COUNTY


This lease agreement, made and entered into as of the 1st day of September, 1997, by and between D. Mark Boyd, III and wife, Diane H. Boyd (hereafter called "Lessor"), and Lincoln Bank of North Carolina (hereinafter called "Lessee"),


WITNESSETH:


In consideration of the rents hereinafter agreed to be paid and in consideration of the mutual covenants and agreements hereinafter recited, Lessor does hereby lease and demise unto Lessee and Lessee does hereby lease and take as tenant from Lessor all of that real property described in Exhibit "A" attached hereto and incorporated by this reference.


To have and to hold the said Premises unto the Lessee upon the following terms and conditions:


1. Term. The initial term of this Lease shall begin on the 1st day of
September 1997. It shall expire at 12:00 midnight August 31, 2002. It
is agreed that, at the expiration of the initial term of this Lease,
Lessee shall have the right and option to renew the Lease for one (1)
additional five (5) year term. The renewal terms shall commence as of
the end of the base term of this Lease and shall be subject to and in
accordance with all terms and conditions set forth in this Lease. If
Lessee shall desire to exercise this right and option, it shall give
Lessor notice in writing not less than ninety (90) days prior to the
expiration of the then current term of this Lease. If Lessee shall
fail to provide such notice to Lessor within such time period, it
shall be conclusively deemed that Lessee has elected not to renew and
extend the term of this Lease as aforesaid, time being of the essence.


2. Rent. Lessee shall pay to the Lessor the following sums payable in
advance on the first day of each month in installments as follows.
Payments for the optional lease term will be negotiated in good faith
based on comparable market rates, but under no circumstances shall the
amount be less than $3,658.67 monthly.
Year Annual Rent Monthly Payment


1 34,944 2,912.00
2 37,184 3,098.67
3 39,424 3,285.33
4 41,664 3,472.00
5 43,904 3,658.67


3. Default. The occurrence of one or more of the following events (herein
called "Events of Default") shall constitute default by the Lessee:


A. Failure to pay rent or any other payments hereunder when due if the
failure to pay is not cured within fifteen (15) days after notice
thereof has been given to Lessee.


B. Failure to perform any other provision of this Lease if the failure
to perform is not cured within fifteen (15) days after notice thereof
has been given to Lessee.


4. Lessor's remedies upon default by Lessee. Lessor shall have the
following remedies if Lessee commits a default. These remedies are not
exclusive; they are cumulative in addition to any remedies now or later
allowed by law.


A. Lessor shall have the right to continue this Lease in full force
and effect.


B. Lessor shall have the right to terminate this Lease upon first
giving to the Lessee thirty (30) days notice to vacate. Said thirty
(30) days notice to vacate shall be in addition to the fifteen (15)
days given to cure default.


5. End of Term. Upon the expiration of this Lease, Lessee shall quit and
surrender to Lessor the Premises, broom clean, in good order and
condition, ordinary wear and tear expected and Lessee shall remove
from the premises all of its property.


6. ...