SW7091202_HISTORICAL FILE_20210716

STORMWATER DIVISION CODING SHEET
POST -CONSTRUCTION PERMITS
PERMIT NO. SW
DOC TYPE ❑ CURRENT PERMIT
❑ APPROVED PLANS
HISTORICAL FILE
❑ COMPLIANCE EVALUATION, INSPECTION
DOC DATE
YYYYMMDD

ROY COOPER
covernor
ELIZABETH S. BISER
Secretary
BRIAN WRENN
Dhrctor
NORTH CAROLINA
Environmental Quality
July 16, 2021
Towne Bank
Attention: William Littreal, Chief Financial Officer
6001 Harbour View Blvd.
Suffolk, VA 23435
Subject: Stormwater Permit Renewal
Stormwater Management Permit SV 7091202
Towne Bank — Kitty Hawk, NC
Dare County
Dear Mr. Littreal:
A Division of Energy, Mineral, and Land Resources file review has determined that
Stormwater Permit SV 7091202 for a stormwater treatment system consisting of an
infiltration basin serving Towne Bank located at 4629 N. Croatan Hwy, Kitty Hawk, NC
expires on December 31, 2021. This is a reminder that permit renewal applications are
due 180 days prior to expiration. We do not have a record of receiving a renewal
application.
This permit was originally issued to Monarch Bank/OBX Bank. Please submit a
completed permit renewal application along with a $505.00 fee for permit renewal.
Permit application forms for renewal can be found on our website at:
https://deq.nc.gov/about/divisions/energy-mineral-and-land-
resources/stormwater/stormwater-program/post-construction-2. North Carolina General
Statutes and the Coastal Stormwater rules require that this property be covered under a
stormwater permit.
If you have questions, please feel free to contact me at [phone]. 1 will be glad to
discuss this by phone or meet with you. If you would like, I can e-mail you a copy of the
application forms. You can request a copy by e-mailing me at
roger.thorpe(d-,)ncdenr.gov.
Cc Wink Davis Co., LLC, property owner
Sincerely,
Roger K. Thorpe
Environmental Engineer
North Carolina Department of Environmental Quality I Division of Energy. Mineral and Land Resources
Washington Regional Office 1943 Washington Squarebfall l Washington. North Carolina 27889
V
25i2.946.0461

SlAd
Central Files: APS _ SWP _
5/20/2014
Permit Number SW7091202 Permit Tracking Slip
Program Category
Status
Project Type
State SW
Active
New Project
Permit Type
Version
Permit Classification
State Stormwaler
1.00
Individual
Primary Reviewer
scolt.vinson
Coastal SWRule
Permitted Flow
Facility
Permit Contact Affiliation
img Nam Major/Minor Region
OBX Bank- Kitty Hawk Minor Washington
Loc County
Eckner St 11S 158 �A S�i « 6�iG / Dare
Facility Contact Affiliation
Kitty Hawk NC 27949 Q/r. /n t ✓ (/�,�
o • i/+f�o.� 7
Owner
Owner Name
Wink Davis Cc LLC
Owner Type
Non -Government
Owner Affiliation
Miles Davis
Dates/Events
Scheduled
Orig Issue App Received Draft Initiated Issuance Public Notice Issue Effective Expiration
3/8/2010 12/7/2009 3/8/2010 3/8/2010 12/31/2021
Regulated Activities
Requested /Received Events
Stale Slormwater - HD - Infiltration
Deed restriction requested
State Stormwaler - Infiltration System
Deed restriction received
Additional information requested 2/5110
Additional information received 2/26/10
Outfall
Waterbody Name Streamindex Number Current Class Subbasin
ft/c tgow� k e-,rors 5.4

,� i
a'. .� ' �
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F

North Carolina Secretary of State
Page 1 of 1
North Carolina
r":�."
B� '
g t i '. � Elaine F. Marshall DEPARTMENTOFTNE
Secretary SECRETARY OF STATE
011�/ PO Bo, 29a2T Ralapi. NC 176laii f9[9ydi
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Corporation Names
Name Name Type
NC Monarch Bank Legal
Business Corporation Information
SOSID:
0912473
Status:
Current -Active
Date Formed:
10/9/2009
Citizenship:
Foreign
State of Inc.:
VA
Duration:
Perpetual
Registered Agent
.Agent Name:
Registered Office Address:
Registered Mailing Address:
Principal Office Address:
Principal Mailing Address:
Capitol Corporate Services, Inc.
120 Penmarc Street, Suite 118
Raleigh NC 27603
120 Penmarc Street, Suite 118
Raleigh NC 27603
1101 Executive Boulevard
Chesapeake VA 23320
1101 Executive Boulevard
Chesapeake VA 23320
DEC 0 7 2009
t, i, r'f t _.
http://www.seci-etai-y.state.nc.us/corporations/Coi-p.aspx?Pitenild=8179354 12/2/2009

North Carol ina Secretary of State
http: //w w w. s e c r e to ry. s to t e. nc . us /corporations / C o r p. a s px? P i to m l d=8 7...
CORPORATIONS
North Carolina
Elaine F. Marshall DEPARTMENT OF THE
Secretary SECRETARY OF STATE
PO Box 29622 Raleigh, NC 2762"622 [phone]
Corporations Home
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Date: 11 /9/2009
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Corporation Names
Name Name Type Lev Imo"
NC WINK Legal
DAVIS CO., LLC S,W aD�
Limited Liability Company Information
SOSID: 1025293 1
Status:
Current -Active
Date Formed:
2/1/2008
Citizenship:
Domestic
State of Inc.: NC
Duration:
Registered Agent
Perpetual
Agent Name:
Davis, Miles W.
Registered
504 Kitty Hawk Road
Office Address:
Kitty Hawk NC 27949
Registered
PO Box 46
Mailing
Kitty Hawk NC 27949
Address:
Principal Office
504 Kitty Hawk Road
Address:
Kitty Hawk NC 27949
Principal
PO Box 46
Mailing
Kitty Hawk NC 27949
Address
oft
1 1/9/2009 3:04 PM

I Certify the (FolTowing from the 1§cords of the Commission:
MONARCH BANK is a corporation existing under and by virtue of the laws of Virginia, and is in
good standing.
The date of incorporation is May 01, 1998.
Nothing more is hereby certified.
DEC 0 7 2009
Signed andSeafed at Pjchmond on this Date:
Septem6er22, 2009
(Peck Clerkof the Commission

APPLICATIONFOR CERTIFICATE OFAUTHORITY
Pagel
10. If the corporation is required to use a fictitious name in order to transact business in this State; a copy of the resolution of its
board of directors, certified by its secretary, adopting the fictitious name is attached
11. This application will be effective upon filing, unless a delayed date and/or time is specified:
This is the 23rc day of September , 2009
Monarch Bank
Nam Corpora' a
tgosture
Brad E. Schwartz, Executive Vice President
Type or Print Nacre and Title
NOTES:
/. Filing fee is $250. This document must be filed with the Secretary of State.
CORPORATIONS DIVISION P. 0. BOX 29622 RALEIGH, NC 27626-0622
(Revised January, 1001) (Form B-09)

SOSID: 0912473
Date Filed: 10/9/2009 10:47:00 AM
Elaine F. Marshall
North Carolina Secretary of State
C200927800405
State of North Carolina
Department of the Secretary of State
APPLICATION FOR CERTIFICATE OF AUTHORITY
Pursuant to §55.15-03 of the General Statutes of North Carolina, the undersigned corporation hereby applies for a Certificate of
Authority to transact business in the State of North Carolina, and for that purpose submits the following:
1. The name of the corporation is Monarch Bank ; and if the corporate name is
unavailable for use in the State of North Carolina, the name the corporation wishes to use is:
2. The state or country under whose laws the corporation was organized is: Virginia
3. The date of incorporation was May 1, 1998 ; its period of duration is: Perpetual
4. Principal office information: (Select either a or b.)
a. ❑✓ The corporation has a principal office.
The street address and county of the principal office of the corporation is
Number and Street 1101 Executive Boulevard
City, State, Zip Code Chesapeake, VA 23320 County Chesapeake CiN
The mailing address, if di, fferent from the sheet address, of the principal office of the corporation is:
b. ❑ The corporation does not have a principal office.
5. The street address and county Df the registered office in the State of North Carolina is:
Number and Street 120 Penmam Drive Suite 118
City, State, Zip Code Raleigh, NC 27603 County_ Wake County
6. The mailing address, if di, f erent ftom the street address, of the registered office in the State ofNordt Carolina is:
7. The name of the registered agent in the State of North Carolina is: CAPITOL CORPORATE SERVICES, INC.
8. The names, titles, and usual business addresses of the current officers of the corporation are (attach if necessary):
Name ride Business Address
William F. Rountree, Jr., President and CEO 1101 Executive Blvd., Chesapeake, VA 23320
Brad E. Schwartz, Exec. Vice President and Chief Operations Officer 1101 Executive Blvd., Chesapeake, VA 23320
James R. Ferber, Executive Vice President 1101 Executive Blvd., Chesapeake, VA 23320
Barry A Mathias, Executive Vice President 1101 Executive Blvd., Chesapeake, VA 23320
9. Attached is a Certificate of Existence (or document of similar import) duty authenticated by the Secretary of State or other
official having custody of corporate records in the state or country of incorporation. The Cer6frcate offxfstence must be
an orieinal and less than six months old
CORPORATIONS DIVISION P. O. BOX 29622 RALEIGH, NC 27626-0622
(Revised January; 2002) (Form B-09)

Doe
Id:
6252547
g; i7g9
P: 375
Receipt
4:
09-0729
OW2312009
04:02 PM
NCExcise Tax
Pd:
E0.00
Doc Code:
Barbara M.
DEED
Gray. Register
of Deeds Dare CO,
NC
5252547 a: ®III riP91hN�+ti8M4k41MM MI IMIOU IM 11111 III
EXEf,FT
DARE COUNTY TAX
COLLECTOR
NO. 17a-1-�9
NORTH CAROLINA GENERAL W
Tax:
Parcel Identification No. 010758-000. Verified by
MailBox to:
This instrument was prepared by:
Brief description for the Index:
THIS DEED made this 5th day of
GRANTOR
MILES W. DAVIS, JR., u�}m1ai .
JERRY A. DAVIS, (S� and wife,
ARLENE D. DAVIS 1 /�
WILLIAM P. DAV�I�an/d wife
CATHERINE W.�p�VISi
on
GRANTEE
WINK DAVIS CO., LLC
P. O. Box 46
Kitty Hawk, NC 27949
of
DEC 0 l 2009
-••� .."may..=� ian�c�rJana urantee as used herein shall include said
parties, their h irs, successors, and assigns, and shall include
singular, �p-lural, V uline, feminine or neuter as required by context.
WITNESSET{, tha \ he Grantor, for a valuable consideration paid by the
Grantee, \the re tlpt of which is hereby acknowledged, has and by these
pre/sents` does grant, bargain, sell and convey unto the Grantee in fee
s i!!i lei a�l' t at certain lots or parcels of land situated in Atlantic
a�'W4ship, Dare County, North Carolina and more particularly described
s, follows:
hose certain lots or parcels of land, lying and being in Atlantic
hip, Dare County, N. C., and known and designated as and being

2547
milllt�'iY01' MIL01110APwhWAlMA 11111III
Lots 17, 18 and 19, in Block 26, Section A, of that subdivision known
as Kitty Hawk Beach, revised map or plat thereof made by J. L. Foy,
Registered Surveyor, dated June, 1947, which said map or plat is duly
of record in Map Book 1 at Page 141, Office of the Register of Deeds of
Dare County, North Carolina.
TRACT TWO:
All those certain lots or parcels of land lying and being in"kt-1 n \c
Township, Dare County, N. C., and known and designated as and be-ing Lot
20, in Block 26, Section A, Lots 39 and 40, in Block 35, Sectl3n, A, and
Lots 1, 2, 3, 7, 33, 34, 35, 42, 43, 44 45, and 46, xn �Ypc�C 36,
Section A, of the subdivision known as Kitty Hawk Beach, �[ show and
delineated on map or plat thereof designated Sheet 2\ evise�Map,
Section A, Kitty Hawk Beach, made by William �'�—E�eeman,\ Inc.,
Engineers and duly recorded in Map Book 2, page 154 �n�the�o�fEce of
the Register of Deeds of Dare County, N. C, rep/firence'\t which is
hereby made for a more particular descriptio _thereof\, J
The herein Grantors, Miles W. Davis, 4., Jerry A1. Davis, Sr. and
WilliamP. Davis, being the sole heirs 1at\ law of Mgrgaret M. Davis,
deceased. \\ //
TO HAVE AND TO HOLD the afore said lot or parcel of land and all
privileges and appurtenances thereto elong ing to the Grantee in fee
simple. �
And the Grantor covenants wi
the premises in fee sim e,
simple, and that titl6,/is
encumbrances, and that Gra
against the lawful claim
following exceptions: ��
Easements and
ordinances and
IN
as of the
it ee; that Grantor is seized of
g�t to convey the same in fee
and free and clear of all
warrant and defend the title
Dns whomsoever, other than the
)earing of record, and all zoning
ions applicable thereto.
the Grantor has duly executed the foregoing
t above written.
(SEAL)
Miles W. Davis, Jr.
(SEAL)
-der'rg A. Davis, Sr.
iL1PLJJA ' S (SEAL)
rlene D. Davis

6252547 B: 1789 P: 375 Page 3 of 4 1/23/09 4:02 PR
VV� ' (SEAL)
William P. Davis
&a �G ,
"" --� (SEAL)
Catherine W. Davis
STATE OF f4DR.7N CAPVLlQI%
COUNTY OF DARE
I, the undersigned Notary Public of the County and SC�e aid,,
certify that Miles W. Davis, J$r., personally appeared befgre me) this
day and acknowledged the due execution of the foregoing- mainstrument for
the purposes therein expressed. \
1/ �al'�.rt1l
Witness my hand and Notarial stamp or seal, this L.j d of March,
2008.—_�
My Commission Expires:
`�i ri1, t, so //
State of NptnI CVaULtoa
County of
I, the undersigned Notary
certify that Jerry A. Days
appeared before me thisday
--
foregoing instrument fo�r/the
is `�PO��(H t. syF9
OOUXA ,.•`.
li of he County and State aforesaid,
r��and wife, Arlene D. Davis, personally
ndacknowledged the due execution of the
lrposes therein expressed.
�s)tamp or seal, this _Lday of

F
' 6252547 6: 1789 P: 375 Page 4 of 4 1/23/09 4:02 PM
®ill KIIIII1hNAM1lM MkVMI W,IM+UM411111
STATE OF
COUNTY OF phi
I, the undersigned Notary Public of the County and State aforesaid,
certify that William P. Davis and wife, Catherine W. Davis, personally
appeared before me this day and acknowledged the due execution off{\the
foregoing instrument for the purposes therein expressed. \
L 'l�
Witness my hand and Notarial stamp or seal, this 0 day oP ��laz�li,
2008. ,/ % \ �\

A .4
DEC 0 7 2009
NET GROUND LEASE , .$ 1 J.
?N
This Net Ground Lease ("Lease") is entered into the y day of October 2009 (the "Effective
Date") by Wink Davis Company, a North Carolina company ("Landlord") and Monarch Bank, a Virginia
chartered bank ("Tenant') trading as OBX Bank.
RECITALS,
A. Landlord is the owner of certain real property located in Kitty Hawk, North Carolina
more particularly described as Lots 1, 2, 3, 7, 45 & 46, Section A,.Kitty Hawk Beach, Kitty Hawk,
Atlantic Township, Dare County, North Carolina (the "PropertX").
B. Landlord desires to lease to Tenant, and Tenant desires to take and lease from Landlord
the Property as shown on Exhibit A, attached hereto and incorporated herein by this reference.
NOW, THEREFORE, for and in cousideration of the rents reserved hereunder and the terms and
conditions hereof, Landlord hereby rents, demises, and leases to Tenant, and Tenant takes and leases from
Landlord the Property, all upon the following terms and conditions:
WffNESSETH
1. Property; Use.
A. Lease of Property. Landlord hereby leases, rents, and demises to Tenant, and
Tenant hereby takes and leases from Landlord subject to and with the benefit of the terms and provisions
of this Lease the Property. Tenant accepts the Property "AS-IS"(except as defined in section 4 below)
B. Easements. Landlord hereby grants to Tenant for the benefit of the Property
during the Term (as hereinafter defined) of this Lease and all extensions of the Term, nonexclusive
easements for storm water drainage over the entrances, curb cuts, drive aisles, roadways and sidewalks as
they may exist from time to time, for the benefit of the Property. Landlord also grants to Tenant
easements to drain any storm water into any storm water retention ponds that will benefit the adjacent
parcels and any easements for utilities.
C. Use. Tenant shall use the Property for the purposes of conducting the following
business: financial services, including deposit gathering, loan generation, mortgage lending, title
insurance sale and servicing, lending operations of all types, brokerage/investment services, insurance
sales, check cashing services, money services or ancillary financial services (Retail Banking) (the
"Contemplated Use"). Tenant may lease or suffer the use of the Property or any portion of the Property
for any other business or purpose as it deems appropriate. Tenant shall use and maintain the Property in
accordance with all laws, ordinances, rules and regulations of all governmental authorities having
jurisdiction over the same.
D. Tenant's Exclusive. Provided Tenant is open and operating a retail bank, and is
not in default under the terms of this.Lease beyond any applicable notice and cure period; Landlord
covenants and agrees that Landlord shall not enter into a lease or consent to the use and occupancy of any
of the adjacent properties owned by landlord by a, tenant, subtenant, assignee, licensee or concessionaire
operating a retail bank or retail mortgage operation (the "Exclusive Use'). This covenant shall run with
the land and shall be memorialized in such, a manner as may be necessary to insure its enforceability in
the opinion of counsel for the Tenant.

E. Possession. Landlord shall deliver the Property to the Tenant upon full execution
of the Net Ground Lease, subject to the terms and conditions of the Lease for the purpose of performing
tests, surveys, etc. related to due diligence.. Tenant may, at its option, begin construction at any time after
it takes possession of the Property and has received required permits and approvals.
2. Term.
A. Initial Term. The Initial Term of this Lease shall commence on the first to occur
of (1) the date that Tenant opens the Property to the public for business, or (2) April 1, 2010 (the
"Commencement Date") and shall expire on the last day of the thirtieth (30t°) Lease Year. A Lease Year
is defined as each successive twelve (12) full calendar month period during the Term, except that the fast
Lease Year will be increased to include any partial month at the beginning of the Term if the
Commencement Date is not the first day of a calendar month. In the event Tenant extends this Lease for
any Renewal Term, the Term will also include the period of any Renewal Term exercised by Tenant. The
Initial Term and any Renewal Term (as defined in Section 2.13. below), as applicable, will be referred to
as the "Term")
B. Renewal Term. Provided that (i) no event of default has occurred and is then
continuing beyond any applicable notice and grace period on the date that notice is required to be given
the commencement date of any Renewal term and (ii) Tenant gives written notice to Landlord at least one
hundred eighty (180) days prior to the expiration of the Initial Term or the current Renewal Term,
Landlord hereby grants to Tenant the right to extend the original Term for two (2) periods of ten (10)
Lease Years each (each a "Renewal Term" and collectively the "Renewal Terms"). All of the terms,
conditions and provisions of this Lease shall remain in full force and effect during any Renewal Term
except that the Annual Rent shall be as provided in Section 3.A.
3. Rent. In consideration for the lease of the Property, and of the performance by
Landlord of its obligations set out in this Lease, Tenant agrees to pay the following amounts to Landlord
during the Term, beginning with the Commencement Date (Annual Rent, as defined below, and
Additional Rent, as defined below, may be collectively referred to as "Rent').
A. Annual Rent. Tenant agrees to pay Annual Rent to Landlord in equal monthly
installments, prorated for any partial months, on the first day of each month during the Term, with the
first payment being due on the.Effective Date and which shall be applied to the first Monthly Installment
of Annual rent due beginning on the Commencement Date. Annual Rent will be paid without set-off or
deduction except as otherwise permitted in this Lease. The Annual Rent amounts to be paid by Tenant are
as listed in the chart below:
Lease Years
Annual Rent
Monthly Installment
Lease Years 1 through 5
$90,000.00
$7,500.00
Lease Years 6 through 10
$100,000.00
$8,333.33
Lease Years l l through 15
$110,000.00
$9,166.67
Lease Years 16 through 30
CPI adjusted annually with a 3% cap
The parties agree that the Annual Rent for the two (2) Renewal Terms (Lease Years 31-50,
inclusive), shall be the fair market rent for the Property, as determined by a mutually acceptable,
disinterested appraiser, with knowledge of the rental rates for similar properties in the town of Kitty
Hawk, North Carolina market. If Tenant desires to exercise its option to renew for either of the two (2)
Renewal Terms, Tenant must give Landlord at least one hundred eighty (180) days prior written notice of
2

its desire to renew, after which the parties will retain the appraiser to determine the market value of the
Property and the fair market rental. The parties agree that the costs of the appraisal to determine the fair
market value and rental for the Property will be shared equally by Landlord and Tenant.
B. Taxes. Taxes shall mean the amount paid or payable by Landlord for the ad
valorem real property taxes and general assessments imposed by governmental entity(ies) having taxing
jurisdiction over the Property, that become due during the Term of this Lease upon or against Property,
including the land and the bank building located or to be located thereon, which may be lawfully assessed
either in the name of the Landlord or Tenant. "Taxes" will also include special assessments levied upon or
against the Property and after the Effective Date, whether as "tax increment financing" or otherwise, for
public improvements and betterments that do not exist as of the Effective Date. "Taxes" shall not include
Landlord's income, franchise, corporate, estate, inheritance, transfer, succession, profits, revenue or
similar taxes. The amount of "Taxes" will be calculated using the full benefit of all discounts and credits
that are made available by the taxing authority. Landlord shall use commercially reasonable efforts to
assist Tenant in obtaining a separate tax billing designation for the Property, provided that Landlord shall
not be required to replat the Property or to incur any out-of-pocket expense. At such time as the Property
is designated as a separate taxing parcel, and the Tenant has been designated by the taxing authority as the
entity to be directly billed for said Taxes, Tenant shall be responsible for determining when and in what
amounts Taxes are due and for paying such Taxes on a timely basis. Any such Taxes which Tenant is
required to pay shall be paid by it prior to delinquency. Tenant shall be responsible for the payment of
any penalties, interest or other charges (the "Penalties") imposed by the taxing authorities upon
delinquent payment of Taxes by the Tenant. If Tenant fails to pay any Taxes which it is required to pay
within the time period provided, Landlord may, at its option, pay said Taxes, together with any and all
Penalties and said amount shall become immediately due and payable as Additional Rent. If the Landlord
and Tenant are unable to separate the Property for purposes of Tenant receiving a separate tax bill, then
the Landlord may pay said Taxes and submit to Tenant a bill for such taxes indicating the manner in
which it determined Tenant's share. Tenant shall reimburse Landlord for such tax payment within thirty
(30) days of receipt of the said billing. In the event that Tenant disagrees with Landlord's calculation of
its share it may notify Landlord of same within fifteen (15) days of its receipt of such billing.. If the
parties are unable to resolve the issue they shall meet promptly with an appropriate representative of the
taxing authority in order to make a final determination.
C. Operatine Expenses. Tenant will be responsible to pay for all operating
expenses relating to the Property. The term "Operating Expenses" shall mean the actual costs incurred
with respect to operating and maintaining utility lines leading to the buildings, landscaping, gardening,
signage, parking lot repair and maintenance, exterior lighting, painting, provision for exterior trash
receptacles, removal of trash, ice, snow, sand, and refuse, in addition to all maintenance and repair to
the building.
D. Payment of Rent. In the event the Annual Rent described above is not paid to
Landlord within ten (10) business days of their respective due dates, Tenant agrees to pay Landlord a late
charge of one percent (1 %) of the amount due. Tenant further agrees to pay Landlord any costs incurred
in the collection of any past due amounts or late charges, including but not limited to, its reasonable
attorney's fees. No notice of non-payment shall be necessary to invoke Tenant's liability for said late
charge. Nothing contained herein shall limit the remedies available to the Landlord.
4. Landlord's Responsibility

A. Landlord's Initial Responsibility. Landlord will assist Tenant in
completing/obtaining the following within the time frames provided below. All cost associated with the
items listed will be the sole responsibility of the Tenant.
W Zoning and Subdivision. Any rezoning and/or subdivision of the
Property required for the Contemplated Use.
(ii) Third Party Approvals. Landlord will assist Tenant in obtaining, prior to
the Commencement Date, any and all third party approvals (excluding governmental licenses or
approvals) for Tenant's Contemplated Use.
(iii) Site Information. Landlord shall provide to Tenant within sixty (60)
business days after the Effective Date the following documents if they have been prepared and are
available to Landlord: (a) survey; (b) legal description of the Property; (c) soil and environmental Phase I
reports; (d) zoning of the Property; (g) easements, restrictions, business park or similar agreements; (h)
encumbrances; and (i) appraisals related to the Property. In addition, Landlord shall provide Tenant any
notice of any legal matters pending or threatened, including any assessments or condemnations, affecting
the Property or the adjacent properties..
5. Feasibility Period; ContinQencv Satisfaction Period
A. Feasibility Period.. Tenant shall have the right, during the period of ninety (90)
days from the Effective Date (the "Feasibility Period"), to investigate the Property; including soils,
survey, title, REA review, utilities, zoning and such other matters as Tenant deems appropriate, including
but not limited to, the following:
(i) Title. During this Feasibility Period, Tenant shall have the right to review
title to the Property and notify Landlord of any title objections Tenant has to Landlord's title that affect
Tenant's Contemplated Use. All title review costs are the sole expense of Tenant, including. any title
insurance which Tenant may elect to obtain. During the first forty-five (45) days of the Feasibility Period,
Tenant agrees to review title to the Property and notify Landlord of any objections Tenant has to the
Landlord's title to the Property that affect Tenant's Contemplated Use. Landlord shall have the right,
during the remainder of the Feasibility Period, to attempt to cure any objections Tenant has to title. If
Landlord does not elect to cure Tenant's objections, or if Landlord fails to cure these objections to
Tenant's satisfaction, Tenant may terminate this Lease by giving Landlord written notice thereof prior to
the expiration of the Feasibility Period. If Tenant does not notify Landlord of any objections to
Landlord's title to the Property during the first forty-five (45) days of the Feasibility Period, Tenant shall
be deemed to have accepted Landlord's title to the Property.
(ii) Survey. Within sixty (60) days after the Effective Date, Tenant, at its
sole expense, shall have the Property and the easement area(s) surveyed pursuant to Tenant's
specifications. Tenant shall have thirty (30) days from the date of receipt of the survey to notify Landlord
of any objections. In the absence of any objection, the survey will be deemed approved thirty (30) days
after receipt by Tenant.
(iii) Tests. During the Feasibility Period, Tenant may conduct such tests,
studies and investigations as Tenant deems appropriate to determine if the Property is suitable, in
Tenant's sole and absolute discretion, for the Contemplated Use. From and after the Effective Date,
Tenant and Tenant's representatives may enter the Property to perform the survey and conduct such tests,
studies and other investigations of the Property which Tenant believes necessary. Tenant will repair

damage to the Property and indemnify Landlord against liabilities resulting from its entry on to the
Property. Landlord will cooperate with Tenant's reasonable requests for information and assistance in
connection with such investigations.
(iv) Tenant shall be entitled to one thirty (30) day extension of the Feasibility Period
upon delivering written notice thereof to the Landlord at least ten (10) days in
advance of the expiration of such Period, stating that in good faith it expects to
complete its study within such period.
B. Contingency Satisfaction Period. Notwithstanding anything herein to the
contrary, Tenant shall have the right, in its sole discretion, to terminate this Lease prior to the expiration
of the Feasibility Period without stating a reason therefor by giving Landlord written notice thereof. If
Tenant does not terminate this Lease prior to expiration of the Feasibility Period, Tenant may still
terminate this Lease until the end of the period which is ninety (90) days commencing upon the expiration
of the Feasibility Period (the "Contingency Satisfaction Period"), if it is unable to obtain the following
during such period:
(i) Permits and Licenses. Throughout the Contingency Satisfaction Period
and thereafter, Tenant will pursue licenses, permits and governmental approvals for the Contemplated
Use. Tenant will applyfor all permits no later than the sixtieth (60a') day of the Contingency Satisfaction
Period. These may include (among others) business licenses and any required curb cut, signage and
building permits. If all licenses, permits and approvals . are not obtained prior to the end of the
Contingency Satisfaction Period, Tenant may cancel this Lease by written notice to Landlord or extend
the Contingency Satisfaction Period (the "Extended Contingency Satisfaction Period") until such licenses,
permits and approvals applied for by the sixtieth (600i) day of the Contingency Satisfaction Period, have
been received. If such approvals are ultimately denied, Tenant may cancel this Lease by written notice to
the Landlord within ten(IO) business days and any rent paid to landlord will be promptly returned to
Tenant. If Tenant has not applied for permits by the ninetieth (90te) day of the Contingency Satisfaction
Period, Landlord shall have the one-time right to terminate this Lease at the end of the Contingency
Satisfaction Period, unless Tenant agrees to waive its right to terminate the Lease on account of its failure
to obtain permits for which application has not been made.
(ii) Banking Regulatory Approval. During the Feasibility Period, Tenant
will seek banking regulatory approval for a branch to be located on the Property. Tenant will apply for
banking regulatory approval no later than the thirtieth (30"') day of the Contingency Satisfaction Period.
6. Warranties of Landlord. Landlord makes the following representations and warranties,
each of which (i) is material and is being relied upon by Tenant in entering into this Lease, (ii) is true in
all respects as of the Effective Date:
A. Landlord is the owner of fee simple title to the real property described as the
Property and the easement areas as of the Effective Date.
B. Landlord has the full right, power and authority to enter into and perform
Landlord's obligations pursuant to this Lease and to lease the Property to Tenant and grant the easements
in the manner contemplated in this Lease without the consent, approval or joinder of any other person or
entity.
C. To the best of Landlord's knowledge, there are no existing proposed or
contemplated assessments for or plans to widen, modify or realign any street or highway or any existing,
9

proposed or contemplated eminent domain proceeding which would affect the Property, the easement
area(s) or Tenant's use of the Property or the easement area(s) in any way whatsoever.
D. Landlord has no knowledge of any deposit, storage, disposal, removal, burial,
discharge, spillage, uncontrolled loss, seepage or filtration of any Hazardous Substances at, upon, under,
or within the Property or on property adjacent thereto.
E. No other person or entity will have a right to possession of all or any part of the
Property as of the Commencement Date.
Construction of Improvements; Title to hnprovements.
A. Construction. Except as otherwise provided herein, all work required to construct
the full service banking facility at the Property shall be performed by Tenant at its sole cost and expense.
Tenant will, at its sole expense, construct a banking building (full service banking facility) on the Real
Property, together with any and all such further improvements as Tenant determines necessary or
desirable for the conduct of its business from the Property (collectively, the "Improvements"). Tenant will
obtain its permits and will improve the Property at its sole cost and expense, including but not limited to,
all.permitting, building construction, paving and striping of any parking and drive turn lanes within the
Property, lighting of the Property and landscaping on the Property which may be required by the town of
Kitty Hawk. Any such Improvements constructed by Tenant shall conform to and be approved by local
governmental authorities having jurisdiction and shall be in compliance with all applicable local and state
building codes.
B. Construction Areas. Landlord agrees that Tenant will have the right, during its
construction period, to place trailers on Landlord's property and Tenant will provide tool storage and
staging areas together with its own trash facilities in areas mutually agreeable to Landlord and Tenant.
C. Signs. Subject to the applicabletown of Kitty Hawk ordinances, Tenant shall be
entitled to erect on the Improvements or Property, the maximum amount of signage as permitted by
applicable governmental regulations.
D. Title to Buildings, Improvements and Fixtures. Title to any Improvements,
including any repairs, alterations, additions or improvements to the Improvements, shall be vested in and
remain the property of Tenant at all times during the Term of this Lease and during all Option Periods;
provided, however, upon the expiration of this Lease, or earlier termination i.e. condemnation, rerouting
of road, eminent domain, whichever event shall first occur, except as may be specifically provided for in
Section 15 of this Lease, title to such Improvements shall immediately and automatically vest in, revert to
and become the property of Landlord. Notwithstanding the foregoing, however, Tenant shall be entitled
to remove Tenant's trade fixtures, security deposit box assemblies, ATM machines; signs andall other
personal and/or proprietary property (collectively, "Tenant's Fixtures") from the Property.
8. Liens. Landlord and Tenant agree that neither party will permit any liens to be filed
against the Property. Each agrees to hold the other harmless against any loss or damage due to any lien
filed against the Property on account of non-payment or dispute with respect to labor or materials
furnished in connection with the construction referred to herein or any other construction on the Property
and such party will not allow any judgment to lie against the Property. The party causing a lien to be
filled will either have the lien removed within thirty (30) days of notice of the filing of the lien or will
bond off the lien should the party desire to contest it.

9. Repairs and Maintenance. Tenant will, at all times, and at its own cost and expense,
maintain in good repair and condition the buildings erected by Tenant on the Property.
10.. Environmental Obligations.
A. Tenant's Obligations. Tenant shall not conduct nor permit to be conducted on
the Property any activity involving the generation, manufacture, refinement, transport, treatment, storage
(other than reasonable quantities of commercial housekeeping products), handling, disposal, transfer,
production or processing of Hazardous Substances or other dangerous or toxic substances or solid waste
(hereinafter collectively referred to as "Hazardous Substances"), and Tenant furthermore shall not cause
or permit the Release of any Hazardous Substances on or off -site of the Property.
Tenant further agrees that a copy of any audit, test, or other form of report required of Tenant by
any governmental agency regarding any activity involving Hazardous Substances shall be provided to
Landlord within ten (10) days after it is provided to such governmental agency.
It is Tenant's obligation at its sole cost and expense to comply or insure compliance with, and to
be responsible for matters arising out of, all federal, state, foreign and local laws orregulations,
agreements with governments, and court and administrative orders with respect to any of the activities
described in this Section, including without limitation, the Resource Conservation and Recovery Act,
with respect to the Property and the Tenant's activities therein.
In the event Landlord discovers or determines the existence of any release or discharge or any
other contamination on the Property, caused by the Tenant involving Hazardous. Substances or any
violation of federal, state or local law regulation, the result of which may require remedial action pursuant
to any law or ,may be the basis for the assertion of any third party ,claims, including claims of
governmental entities, Tenant shall, upon notification from Landlord, at its sole, cost and expense, proceed
with due diligence to take the appropriate action in response thereto. In the event that Tenant fails to so
proceed to take the appropriate action and shall have the. right to indemnity set forth below; provided,
however, that this provision should create no duty on the part of landlord to notify Tenant or take any
other action remedial or otherwise.
Tenant agrees to indemnify and hold harmless Landlord, their successors and assigns, against and
in respect of, any and all damages, claims, losses, liabilities and expenses, including, without limitation,
reasonable legal and accounting fees, incurred by Landlord, its successors and assigns, by any other party
or parties (including, without limitation, a governmental entity), arising out of or in connection with any
activity of Tenant involving Hazardous Substances or any Release of Hazardous Substances by Tenant,
including the exposure of any person to any such Hazardous Substances.
Any violation by Tenant of any provision of this Section shall be considered a default under this
Lease Agreement and the Landlord shall be entitled to any of the remedies therefore.
As used herein the "Hazardous Substance" means, at any time, (a) any "hazardous substance" as
defined in S101(14) of CERCLA (42 U.S.C. S9601 (14)) of the Code at such time; (b) any "hazardous
waste," "infectious waste" or "hazardous material as defined in the Code at such time; (c ) any
additional substances or materials which at such time are classified or considered to be hazardous or
toxic, or otherwise regulated under the laws of State in which the Property is located or any other
applicable laws, rules or regulations relating to the Property; and (d) any substance or material listed in

the U.S. Department of Transportation Table (49C.F.R. 172.101) and amendments thereto -from time to
time.
B. Landlord's Obligations. Landlord will hold Tenant harmless from and will
indemnify Tenant against all losses, damages, costs (including reasonable attorney's fees), claims, cause
of action and liabilities arising out of or related to the presence of any Hazardous Substances at, upon,
under or within the Property not introduced by Tenant.
it. Utility Charges.
A. Prompt Pam. Tenant will promptly pay when due all charges for water,
sewer, electricity, fuel, heat and power and other utilities supplied to the Property for use by Tenant. All
utilities will be separately metered to the Property. In the event a utility easement is required to provide a
utility service necessary for the Tenant's use of the Property, Landlord agrees to execute the necessary
documents to grant the utility easement.
B. Availability of Utilities. Landlord will neither take nor permit any action to be
taken which would interrupt any utilities to the Property. The interruption of any utility for a. period of
five (5) or more days, caused directly by the Landlord's actions, or by those over whom Landlord has
control, will, without limiting any other claim for damages Tenant may have, cause an abatement of all
rents until such time as the interrupted utility is restored.
12. Default.
A. Tenant Default. The following events shall each be deemed an event of default
("Event of Default") by Tenant under this Lease: (i) Tenant is in default under any provision of this Lease
and remains so for a period of thirty (30) days after written notice to Tenant of said default; (ii) Tenant
becomes bankrupt or insolvent or files any debtor proceedings, or takes or has taken against Tenant in any
court pursuant to any stature either of the United States or any State, a petition in bankruptcy or
insolvency or for reorganization or for the appointment of a receiver or trustee of all or a portion of
Tenant's property; (iii)Tenant makes an assignment for the benefit of creditors or petitions for or enters
into such an arrangement; or (iv)Tenant suffers this Lease to be taken under any writ of execution or
causes any liens to be placed on the Property without the express permission and consent of the Landlord.
In the event that Tenant seeks financing for the improvements .on the Property the assignment of this
Lease to a lender shall not be deemed an Event of Default.
B. Landlord Remedies Upon an Event Default. On the occurrence of an Event of
Default, and. subject to terms and conditions provided herein, Landlord may; (a) cure such Event of
Default in any other manner (after giving Tenant written notice of Landlord's intention to do so except in
the case of emergency), in which event Tenant shall reimburse Landlord for all expenses incurred by
Landlord in doing so, plus interest at the Default Rate (defined as the lesser of eight percent (8%) per
annum or the rate per annum equal to the then current prime interest rate published in The Wall Street
Journal in its "Money Rates" "section), which expenses and interest shall be Additional Rent and shall be
payable by Tenant immediately on demand therefore by Landlord; and/or (b) terminate this Lease and
collect liquidated damages from Tenant in an amount equal to (i) the sum of all amounts due hereunder to
the date of termination.
C. Landlord Default. In the event Landlord defaults in the performance of any of its
legal and contractual obligations under this Lease, and such default continues for a period of thirty (30)
days after written notice to Landlord from Tenant specifying the nature of such default, or such additional
time as reasonably may be required to cure same, Tenant may, without waiving any other rights or
remedies Tenant may have at law or in equity, including but not limited to injunctive relief and the

recovery of actual damages, cure the default on behalf of Landlord and the cost of such curing will be due
and payable to Tenant from Landlord upon demand by Tenant. Failure of Landlord to promptly pay any
amounts due Tenant will entitle Tenant to deduct the costs, plus interest, from any amounts due Landlord
until Tenant is repaid in full.
D. Remedies Not Cumulative. On the event of an uncured default, the non -
defaulting party will use reasonable efforts to mitigate damages. The rights of the Landlord and Tenant as
stated above in the event of a default will not preclude either party from pursuing any equitable rights and
remedies, including, but not limited to, specific performance and injunctive relief.
13. Indemnity and Insurance.
A. Indemnity. Tenant agrees to indemnify and hold Landlord harmless from any
and all losses, damages, liability, or expenses (including reasonable attorneys' fees) incurred by Landlord,
arising from loss of life, personal injury and/or property damage, caused by or resulting from, in whole or
in part, any negligent act or omission or intentional misconduct of Tenant or any officer, agent, contractor
or employee of Tenant, in connection with Tenant's use or occupancy of the Property. Landlord agrees to
indemnify and hold Tenant harmless from any and all losses, damages, liability, or expenses (including
reasonably attorneys' fees) incurred by Tenant, arising from loss of life, personal injury and/or property
damage, caused by or resulting from, in whole or in part, any negligent act or omission or intentional
misconduct of Landlord or any officer, agent, contractor or employee of Landlord, in connection with the
management, use, or occupancy of the Property.
B. Tenant Liability Insurance. Tenant shall procure and maintain, and pay all
premiums, fees and charges for the purpose of procuring and maintaining continuously throughout the
Term: (i) insurance on the Improvements against loss or damage by fireor other casualty with
endorsements providing what is commonly known as all risk fire and extended coverage (but not
including flood or earthquake coverage), vandalism and malicious mischief insurance, in an amount equal
to the full replacement cost thereof, with a deductible that is consistent with Tenant's insurance practices;
and (ii) general liability insurance with a combined single limit of not less than One Million Dollars
($1,000,000.00) for,any bodily injury or property damage, with a deductible that is consistent with
Tenant's insurance practices.
C. Miscellaneous. Prior to taking possession of the. Property, Tenant shall deliver to
Landlord copies of insurance policies or satisfactory certificates thereof. Tenant shall deliver to Landlord
as soon as practical, by adding Landlord with its insurance carrier as an automatic recipient of certificates
of insurance, all renewals of the insurance provided for above.
D. Mutual Waiver of Subrogation. Landlord and Tenant waive any legal rights each
may acquire against the other during the Term for the loss of or damage to their respective property or to
property in which they have an interest, which loss or damage is covered by insurance.
14. Damage to or Destruction of Improvements.
A. Property. In the event that, at any time during the term of this Lease, the
Improvements on the Property shall be destroyed or damaged in whole or in part by any cause
whatsoever, then Tenant shall promptly give written notice thereof to Landlord and Tenant shall, at
Tenant's sole cost and expense, either (i) cause the same to be repaired, replaced or rebuilt within twelve
(12) months from the date of such damage or destruction or within such'shorter period of time which,
E

under all prevailing circumstances, shall be reasonable, to as good condition as existed prior to such
damage or destruction and in architectural design and appearance harmonious with that which was
damaged or destroyed, or (ii) cause all Improvements to be demolished and razed and all trash and debris
to be removed from the Property, and all portions of the Property to be resodded or replanted so as to
restore the Property to a neat and attractive condition, and this Lease shall remain in full force and effect;
or (iii) if such damage or destruction shall occur during the last five (5) years of the Initial Term of this
Lease or during the last two (2) years of any Renewal Term, then Tenant may elect to terminate this Lease
effective upon the date of such damage and destruction upon written notice of such damage or destruction
and Tenant's desire to terminate the Lease given by Tenant to Landlord within ninety (90) days after the
date of such damage or destruction. In the event of any such termination pursuant to this Section 15,
Landlord shall have the right to require Tenant, at Tenant's sole cost and expense, to demolish and raze
the remaining Improvements on the Property and remove all trash and debris therefrom, and to resod and
replant all portions of the Property so as to restore the Property to a neat and attractive condition, and no
termination of this Lease by Tenant pursuant to this Section 15 shall be effective unless and until all of
the remaining Improvements and debris have been removed from the Property and all portions of the
Property have been reseeded and replanted so as to restore the Property to a neat and attractive condition.
Except as otherwise provided herein, during the term of this Lease, destruction or damage in whole or in
part to the Improvements on the Property shall in no way serve to abate the rent to be paid to Landlord by
Tenant hereunder, or abate payment of any other sums, monies, costs, charges or expenses required to be
paid by Tenant hereunder or alter any of Tenant's other obligations under this Lease except that the Lease
will terminate and future rent will be abated if damage or destruction renders the site unusable for the
purpose leased as defined in Section 15 below.
B. Insurance Proceeds. In the event that Tenant terminates this Lease as provided
above, then Tenant shall be entitled to the insurance proceeds relating to the Property and the
Improvements (pursuant to the insurance required to be maintained by Tenant herein) and any insurance
proceeds relating to trade fixtures, furniture, equipment or other personal property damaged by the event.
15. Condemnation.
A. Propertv. If during the term of the Lease or any renewal thereof the whole, of the
Property, or such portion thereof as will make the Property unusable for the purpose leased, shall be
condemned by public authority for public use or sold under threat of condemnation or any part of the
easement areas as to make access to the Property unavailable or unsuitable to Tenant, then, in either
event, the Term hereby granted shall cease and come to an end as of the date of the vesting of title in such
public authority, or when possession is given to such public authority, whichever event first occurs. Upon
such occurrence, the Rent shall be prorated as of such date and any prepaid rent shall be returned to the
Tenant. In the event of a temporary taking, this Lease shall not terminate, but the Term hereof shall be
extended by the period of the taking and the Rent shall abate in proportion to the area taken for the period
of such taking.
B. Award. In the event any or all of the Property is taken by eminent domain, Landlord
and Tenant shall each retain their respective right to seek damages from the condemning authority for loss
in the fair market value of the Property and the improvements thereon and the value of the leasehold. In
no such event shall the Landlord be liable to the Tenant for any business interruption or diminution in the
term, or for the value of any unexpired term of this lease.
16. Assignment and Subletting. Tenant may assign its rights herein or sublet the Property
with Landlord's prior written approval which approval shall not be unreasonably withheld or delayed;
provided, however, Tenant shall -have the right, without Landlord's approval, to.sublet the Property to an
affiliate or other financial institution and the right to assign this Lease to any affiliate, subsidiary or
l0

related entity of Tenant and to assign this Lease in the event of a merger, consolidation, reorganization or
acquisition provided Tenant is part of the surviving entity and provided that no part of the Property shall
be sublet or assigned for a purpose which is unlawful or noxious or in violation of any then existing
exclusives (other than banking or office uses) granted by Landlord. Tenant shall have the right, without
Landlord's approval, to lease any portion of the building constructed by Tenant to unaffiliated parties and
permit parking on the Property by their employees and clients.
17. Quiet Enjoyment. The Landlord covenants and agrees that the Tenant, on paying the
Annual Rental, Additional Rent and other charges required hereunder and performing all of the covenants
herein, shall and may peaceably and quietly hold and enjoy the Property.
18. Holding Over. If Landlord agrees. in writing that Tenant may hold over after the
expiration or termination of this Lease, unless the parties hereto otherwise agree in writing on the terms of
such Holding Over, the hold over tenancy shall be a year-to-year tenancy subject to termination by
Landlord at any time upon not less than sixty (60) days advance written notice, or by Tenant at any time
upon not less than sixty (60) days advance written notice, and all of the other terms and provisions of this
Lease shall be applicable during that period, except that Tenant shall pay Landlord from time to time
upon demand, as rental for the period of any hold over, an amount equal to one and one- tenth (1.10)
times the rent in effect on the termination date, computed on a daily basis for each day of the hold over
period. No Holding Over by Tenant, whether with or without consent of Landlord, shall operate to extend
this Lease except as otherwise expressly provided. The preceding provisions of this Section shall not be
construed as Landlord's consent to Hold Over. If Tenant Holds Over without the written consent of
Landlord, the Tenant shall be deemed a tenant at sufferance, entitling the Landlord to all remedies at law.
19. End of Term. Upon the termination of this Lease, the Tenant shall surrender and yield
the Property and all additions thereto, except as provided herein, in as good and tenantable condition as
the same are at the beginning of Tenant's occupancy, reasonable wear and tear excepted, surrender all
keys for the Property to Landlord at the place then fixed for the payment of Rent and inform Landlord of
all combinations on any locks, safes and vaults, if any, in the Property.
If required by the Landlord, the Tenant shall at its own expense, within fifteen (15) days after
such termination, remove all trade fixtures and bank equipment installed by Tenant.
20. Service of Notice. All notices, demands and communications required to be given under
this Lease will be in writing and served by certified United States mail, postage paid, return receipt
requested, available express mail carrier (such as Federal Express, Emery, Airborne, etc.), or facsimile or
e-mail capable of confirming receipt (provided the original is sent by express mail carrier for next day
delivery), to the respective notice addresses of the parties as provided below or to such other address(es)
as Landlord and Tenant may advise each other in writing pursuant to this Section.
Landlord: Wink Davis Company
PO Box 46
Kitty Hawk, NC 27949
With a copy to:
Tenant: Monarch Bank
Attn: Facilities Management
1101 Executive Boulevard
Chesapeake, VA 23320
11

FACSIMILE NO.: [phone]
PHONE NO.: [phone]
E-Mail: [e-mail]
21. Force Majeure. Landlord and Tenant will be excused and will not be considered in
default for the period of delay in the performance of any and all of their respective obligations under this
Lease when prevented from so performing by cause or causes beyond Landlord's or Tenant's control,
including but not limited to, all labor disputes, civil commotion, war, fire, hurricane, terrorism or another
casualty, shortage of supplies and materials, government regulations or through act of God; provided,
however, performance by either party shall be excused only if and when the party claiming such excuse
notifies the other party in reasonable detail by notice given as soon as practicable but in no event later
than ten (10) business days after such party has knowledge of the occurrence of any such circumstance or
delay and such party exercises reasonable efforts to minimize the effects thereof. Financial inability will
not be excused by this Subsection 22. In the case of such events which would excuse the parties from
performance as set out above, such events shall also result in an extension or any time periods provided
herein for the same length of time as such conditions would prevent performance exists.
22. Law and Venue. This Lease will be governed and construed in accordance with the laws
of the state of North Carolina. In the event a legal action is brought by one party against the other, venue
for such action will lie in Dare County, North Carolina.
23. Attorney's Fees and Costs. Any reasonable and necessary attorney's fees or other costs
incurred by a successful party in the enforcement of this Lease will be paid by the unsuccessful party.
24. Access to Property. The Landlord shall have the right, at all reasonable times during the
Term of this Lease, to enter the Property for the purpose of examining or inspecting the same and of
making such repairs or alterations therein as Landlord may be required to make to the Property and/or the
Common Area under this Lease; provided, however, that, except in the case of an emergency, Landlord
shall have no access unless accompanied by an authorized representative of Tenant which for purposes of
this Lease shall be the Market President, Branch Manager or his or her designee. The Landlord shall also
have the right to enter the Property at all reasonable hours accompanied by an authorized representative of
Tenant for the purpose -of displaying the Property to prospective tenants during any Event of Default by
the Tenant and during the last six (6) months of the Initial Term or any Renewal Term herein set forth if
Tenant shall not have exercised its right to renew this Lease as provided herein.
25. Americans with Disabilities Act of 1990. Tenant will, with respect to the Property and
any easement area(s) under Tenant's exclusive control, comply with the Americans with Disabilities Act
of 1990, as the same may be amended from time to time.
26..Application: Binding Affect. This.Lease constitutes the entire agreement between the parties
concerning the subject matter hereof; and all prior negotiations, commitments, representation,
understandings, agreements and promises are merged herein. No prior representation, warranty,
condition, understanding, or agreement of any kind or nature whatsoever, either oral or written, not herein
contained shall be binding upon either party hereto. Except as herein otherwise provided, no subsequent
alteration, amendment, change or addition to this lease shall be binding upon Landlord or Tenant unless
reduced to writing and signed by them, and no act by any representative or agent of Landlord other than a
written agreement shall constitute an acceptance hereof. This Lease and all of the covenants and
provisions hereof shall inure to the benefit of and be binding upon the heirs, legal representatives,
successors and assigns of the parties hereto. Each provision shall be deemed both a covenant and a
condition and shall run with the land.
12

. 27. Applicable Law. The laws of the State of North Carolina shall govern the interpretation,
validity, performance, and enforcement of this Lease and any litigation brought hereunder or in
connection herewith shall be filed in an appropriatestate or federal forum in the State of North Carolina.
28.. Interest. Any sums not paid when due from one party to the other shall bear interest at
the Default Rate (defined as the lesser of eight percent (8%) per annum or the rate per annum equal to the
then current prime interest rate published in The Wall Street Journal in its "Money Rates" section), from
the date due until repaid in full.
29. Recording. Neither Landlord nor Tenant will record this Lease without first obtaining the
consent of the other, except that the Memorandum of Lease to be entered into by the parties may be
placed on record by Tenant.
30. Offer. The offer extended by one party signing this Lease with expire after fifteen (15)
business days unless accepted, rejected or revoked prior to such expiration. The Net Ground Lease will
become binding only upon the full and unconditional execution and delivery by all parties.
31. Waiver. No covenant, term or condition of this Lease shall be deemed waived by
Landlord or Tenant, nor shall the failure of either party to insist on strict performance be a waiver, unless
same is waived in writing.No waiver by Landlord or Tenant of any breach of any term, covenant, or
condition of this Lease shall be deemed a waiver of any subsequent breach of the same or any other
covenant, term or condition.
31. Consents: Approvals. Where Landlord's or Tenant's consent or approval is required in
this Lease, such consent or approval shall not be unreasonably withheld, conditioned or delayed.
33.. Subordination of Lease: Estoppel Certificates. This Lease shall be subject and
subordinate to the lien of any mortgage and/or deed of trust which Landlord may hereafter place upon the
Property. Landlord and Tenant each agree to promptly provide to the. other from time to time estoppel
certificates in reasonable and customary form..
34.. Exhibits: The following Exhibits have been attached to this Lease and made a part of this
Lease for all purposes.
EXHIBIT A Legal Description of Property
35. 1 Right of First Refusal. Tenant shall be afforded the first opportunity to purchase the
Property in the event that Landlord elects to sell same. If the Landlord receives an offer to
purchase at a price it finds attractive and which it desires to negotiate it shall notifiy Tenant of
such offer and determine if Tenant is interested in negotiating a purchase at the price and on the
terms offered prior to negotiating with the offeror.
[Remainder of page intentionally left blank. Signature pages follow.]
13

EXHIBIT A
Legal Description of Property: real property located in Kitty Hawk, North Carolina more
particularly described as Lots 1, 2, 3, 7, 45 & 46, Section A, Kitty Hawk Beach, Kitty
Hawk, Atlantic Township, Dare County, North Carolina.
15

IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the day and year first above written.
Witnesses:
Name: 7h
DEBRA G. MUELLER
NOTARY PUBLIC
REGISTRATION* 180607
COMMONWEALTH OF VIRGINIA
MY COMMISSION EXPIRES
APRIL30,2013
s to Tenant
fYr���llji►�1
As to Landlord
Tenant:
MONARCH BANK,
a Virginia charte bank
By:
1e: Brad E. Schwartz
Title: Chief Executive Officer
Date: io - Al- 09
Landlord:
WINK DAVIS COMPANY,
14

Vinson, Scott
From:
Warren-Eadus.[[e-mail]]
Sent:
Friday February 26, 2010 4:17 PM
To:
Vinson, Scott
Cc:
David Deel; Eddie Valdivieso; Brian Rubino
Subject:
Possibly spam: RE: OBX Bank
Attachments:
image002.jpg; image003.jpg
Scott -
I looked into the rainfall data as you suggested. First I used the weather underground custom weather feature and entered requests for
rainfall data totals from the following periods (total rainfall in inches):
htto://www. wunderground.com/history/airt)ort/K FFA/2009/ 1 I /26/CustomH istorv. htm I?davend=26&monthend=2&vearend=20 I 0&re
c itv=NA& req_state=NA&req_statename=N A
Nov. 26, 2009 to Feb. 26, 2010
7.38
Nov. 26, 2008 to Feb. 26, 2009
2.40
Nov. 26, 2007 to Feb. 26, 2008
1.86
Nov. 26, 2006 to Feb. 26, 2007
3.30
Nov. 26, 2005 to Feb. 26, 2006
3.64
Nov. 26, 2004 to Feb. 26, 2005
4.05
Nov. 26, 2003 to Feb. 26, 2004
2.00
No data from the Kill Devil Hills airport
recorded prior to 2003—
The Kill Devil Hills Airport (located behind Wright Bros. Memorial) was the closest reliable source of rainfall data I could find.
I also looked into the NRCS WETS data (National Climate and Weather Center) the nearest station is in Washington County, The
NRCS climate data is a little more convoluted and would only give us a regional sense of the rainfall we have been receiving, but the
WETS data also indicate accumulation amounts this year that are well more than double in years 2001 (7.81 inches), 2005 (14 inches),
2009 (11,28 inches) and 2010 (27.2 inches) —Note that this data is not measured from January 1-1 evaluated accumulation on the
same date over the years listed above strictly for a comparison. I hope this information helps with your decision making. Please feel
free to contact me if you have any additional questions or if you need additional information to make a decision about this issue.
Sincerely,
Warren D. Eadus, L.G.
Quible & Associates, P.C.
PO Drawer 870
Kitty Hawk, NC 27949
252.261.3300
+Utsae
Oparw
ENgNEE;INC • CONSULTING •-t.ANNINC
ENlIRONVENTAL SCIENCES ' SURVEYINC
LEGAL DISCLAIMER
The information transmitted is intended solely for the individual or cmity to which it is addressed and may contain confidential and/or privileged material, Any review,
retransmission, dissemination or other use of or taking action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you have
received this email in error please contact the sender and delete the material from any computer.
From: Vinson, Scott [mailto:[e-mail])
Sent: Friday, February 26, 2010 12:19 PM
To: Warren Eadus
Cc: David Deel
Subject: RE: OBX Bank
1 y\\

Warren,
One more thing that might be helpful in our discussion would be the amount of rainfall that has occurred this winter
above the norm. Do you know how much it has rained at KDH so far and what the normal amount might be for KDH
area?
Scott
NOTE: Please update your address book with my new email address Scott.Vinsonnncdenr gov
Please consider the environment before printing this e-mail.
*E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be
disclosed to third parties.
From: Warren Eadus [mailto:[e-mail]]
Sent: Wednesday, February 24, 2010 5:06 PM
To: Vinson, Scott
Cc: David Deel
Subject: OBX Bank
Scott -
Please review the attached memo and give me or Andy a call or send an email to discuss. Thanks.
Warren D. Eadus, L.G.
Quible & Associates, P.C.
PO Drawer 870
Kitty Hawk, NC 27949
252.261.3300
cume
*WOO�. poi.
ENGINEERING • CONSULTING PLANNING
E.•MRGNuENTAL SCIENCES SURVEYING
LEGAL DISCLAIMER
The information transmitted is intended solely for the individual or entity to which it is addressed and may contain confidential and/or privileged material. Any review,
retransmission, dissemination or other use of or taking action in reliance upon this information by persons or entities other than the intended recipient is prohibited. Ifyou have
received this email in error please contact the sender and delete the material from any computer.

MEMORANDUM
February 24, 2010
Subject: OBX Bank, Kitty Hawk, Date County
Stormwater Infiltration Basin Boring
To: Scott Vinson, P.E.
From: Warren D. Eadus, P.C., Quible & Associates, P.C.
`, �J
pgoa #
On February 22, 2010 Brian Rubino, P.C. and I dug a pit in the same general location as the piezometer
location installed on October 26, 2009 (sited within boundaries of proposed stormwater basin). On
February 22, 2010 the water table was recorded at 26 inches below the ground surface with a surveyed
elevation of 10.73' msl. This places the water table on February 22, 2010 at an elevation of 8.56' msl.
I submitted a memorandum to Andy Dee], P.E. dated October 27, 2009 with a soil boring log attached
along with a slug test analysis used to generate hydraulic conductivity values for the site. The water table
in October 2009 was believed to be fairly "normal" based on recent regional rainfall amounts and the
lack of seasonal high water table indicators in the soil (please reference soil boring logs included in the
October 27, 2009 memorandum submitted in the NC DWQ Stormwater Permit application).
Based on your site visit conducted on February 3, 2010 saturated soils were observed at an elevation of
2.5 to 3.0 feet below ground surface.
As you are aware, this region has been receiving quite a bit of rainfall in the last few months. This
information along with the lack of SHWT soil indicators leads me to conclude that the saturation and
water table elevations you observed on February 3, 2010 and Quible observed on February 22, 2010, are
elevated above normal conditions. Therefore, I assert that the normal SHWT is closer to 48 inches below
ground surface (approx. elev. 6.73' msl).
Please feel free to contact me at 252.261.3300 or through email to discuss further if required.
RECEIVED
FEB 2 4 2010
DWQ
Pu0i #

Vinson, Scott
r®
From:
Warren Eadus [[e-mail]
Sent:
Wednesday, February 24, 2010 5:06 PM
To:
Vinson, Scott
Cc:
David Deal
Subject:
OBX Bank
Attachments:
image0o1.jpg; 2.24.10.swmemo.pdf
Scott -
Please review the attached memo and give me or Andy a call or send an email to discuss. Thanks.
Warren D. Eadus, LG.
Quible & Associates, P.C.
PO Drawer 870
Kitty Hawk, NC 27949
252.261.3300
400
ENGINEERING ' CDNSUItING • PEANNLNG
EHVIRONVENTAL SCIENCES • SURVEYING
LEGAL DISCLAMfER „
The information transmitted is intended solely for the individual or entity to which it is addressed and my contain confidential and/or privileged material Any review,
retransmission, dissemination or other use of or taking action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you have
received this email in error please contact the sender and delete the material from any computer.

_Aw6v .a
NCDEFIR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins Dee Freeman
Governor Director Secretary
February 5, 2010
Mr. David McGlaughon, President
OBX Bank, Division of Monarch Bank
3708 N. Croatan Highway
Kitty Hawk, NC 27949
Subject: Stormwater Review SW7091202
OBX Bank — Kitty Hawk
Dare County
Dear Mr. McGlaughon:
This office received a Coastal Stormwater permit application and plans for the subject project on December 7, 2009.
A preliminary review of the project indicates that before a State Stormwater permit can be issued the following additional
information is needed. On February 3, 2010 I conducted a site visit to verify the soil permeability and the seasonal high
water table for the proposed infiltration system. The soils being of fine sands do meet the minimum infiltration rate of 0.52
inches per hour, however there remains a question as to the seasonal high water table, SHWT. The provided soils report
gives the SHWT as being approximately 48 inches l below the ground surface, which would be approximately 6.50 fmsl
from the lowest grade on the northeast corner of the property of 10.50 fmsl. (Please provide a boring map to verify the
location of the ground boring.) The on -site boring I conducted produced saturated soils at approximately 2.50 — 3.0 feet
below the existing ground elevation which could potentially interfere with meeting the minimum 2 foot separation
requirement from the bottom of the infiltration system (9.50fmsl). With the extensive amount of recent rain fall events in the
area and the timing of my site visit, it is understood that the saturated soils I encountered at the time of my visit may not
accurately reflect the true SHWT. If possible, please have your consultants at Quible & Associates briefly revisit the site at a
time when rainfall events would not interfere (3-5 days after a rain event) to assess and verify that the SHWT is at least at an
elevation of 7.50 fmsl. If this can not be accomplished due to ongoing rain events, please have your consultant Andy Deel,
PE call me to discuss possible alternative solutions.
The above requested information must be received in this office prior to March 5, 2010 or your application will be
returned as incomplete. The return of this project will necessitate resubmittal of all required items including the application
fee. If you need additional time to submit the required information, please mail or fax your request for time extension
to this office at the Letterhead address.
You should also be aware that the Stormwater Rules require that the permit be issued prior to any development
activity. Construction without a permit is a violation of 15A NCAC 2H.1000 and North Carolina General Statute 143-215.1
and may result in civil penalties of up to $10,000 per day.
Please reference the Stormwater Project Number above on all correspondence. If you have questions, please feel free
to contact me at [phone].
cc: Andy Deel, PE — Quible & Associates
Washington Regional Office
North Carolina Division of Water Quality
943 Washington Square Mall
Washington, NC 27889
Sincerely,
colt Vinson
Environmental Engineer
Internet: votov.navatarquality.org
Phone: [phone] FAX: [phone]
FAX: [phone]
Nne
orthCarolina
Natundy
An Fmral Onnommity 1 Affirmative Action Emdover

f
Quible
I
r
19� 50
Quible & Associates, P.C.
P.O. Drawer e70
Kitty Hawk. NC 27949
ENGINEERING • ENVIRONMENTAL SCIENCES • PLANNING • SURVEYING
Phone: [phone]
SINCE 1959
Fax: [phone]
PRINCIPALS
December 2, 2009
Sean C. Boyle, P.E.
Joseph S. Lassiter. C.E.P.
Etluartlo J. Ualtliview, P.E.
Mr. Roger Thorpe
ASSOCIATES
o epn J.
NCDENR
Kothedne C. Ma¢hello, P.LS.
Division of Water Quality
943 Washington Square Mall
Washington, North Carolina 27889
DEC 0 7 2009
Re: Stormwater Management Plan (High Density Application)
Proposed OBX Bank - Kitty Hawk
Kitty Hawk, Dare County
Dear Mr. Thorpe:
On Behalf of OBX Bank (A Division of Monarch Bank), Quible & Associates, P.C. hereby submits for
review and approval a High Density Stormwater Management Permit Application package for the above
referenced proposed bank in Kitty Hawk, Dare County. The project falls within the high density
classification. The enclosed narrative will explain in detail the stonnwater management of this site.
The following items are included and shall be considered part of this submittal package:
1. Review Fee Check for $505.00
2. Two (2) copies of the Stormwater Management Permit Application Form w/one (1) copy
of the Infiltration Basin Supplement
3. One (1) copy (original signature) of the Operation and Maintenance Agreement.
4. Stormwater Management Plan Narrative
5. NC Secretary of State Company Registration Information for Wink Davis Co., LLC (Property
Owner)
6. Property Deed
7. Commonwealth of Virginia Corporation Commission registration for Monarch Bank and NC
Secretary of State Entity Name Reservation registering the use of OBX Bank by Monarch Bank
in the State of North Carolina.
8. Two (2) copies of the Plan Sheets 1, 2, 5, 7, and 9.
If you have any questions, or require any additional information, please do not hesitate to contact me at
[phone].
Sincerely,
sso�ciate�s, P.C.eel. P.E.
enc: as stated
cc: Mr. David McGlaughon, President