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                                                                    Exhibit 10.1
                                                                    ------------

                          LEASE AGREEMENT


     THIS LEASE AGREEMENT (herein called the "Lease") is made this 26th day of
October, 1999, by and between Olympia Equity Investors III, L.P., a Maine
limited partnership with a place of business in Bangor, Penobscot County, Maine
("Landlord"), and mailing address of 500 Main Street, Bangor, Maine 04401, and
Coastal Bank, a Maine banking corporation with a place of business at 36 Thomas
Drive, Westbrook, Cumberland County, Maine ("Tenant"), and mailing address of
P.O. Box 8550, Portland, Maine 04104.

                     Landlord and Tenant agree as follows:

     SECTION 1.0. BASIC DATA; CONDITIONS
     -----------------------------------

     1.1  Basic Data

     Each reference in this Lease to any of the terms contained in this Section
or otherwise defined herein shall be construed to incorporate the definitions or
data stated under that term.

Premises Address:   Lot 3, DoubleTree Hotel site, Congress Street, Portland,
                    Maine

     Term:          Initial Term:  10 Lease Years


                    Extended Term: 4 options for 5 additional Lease
                                   Years each

     Rent:          Lease Year     P.S.F.                  Annually    Monthly

                    1-10           $14.80 ("Base Rent")  $277,603.60  $23,133.63
                                   per square foot of
                                   Gross Rentable Area

                    11-15          Base Rent per square foot of Rentable Area of
                                   the Premises shall be annually adjusted to
                                   equal the lesser of the Base Rent for the
                                   previous year multiplied by (a) 1.02 or (b)
                                   the CPI Change (as defined herein) between
                                   January 1 of the Lease Year and January 1 of
                                   the prior year.

                    16-20          Base Rent per square foot of Rentable Area of
                                   the Premises shall be annually adjusted to
                                   equal the lesser of the Base Rent for the
                                   previous year multiplied by (a) 1.02 or (b)
                                   the CPI Change (as defined herein) between
                                   January 1 of the Lease Year and January 1 of
                                   the prior year.

                    21-25          Fixed for five years at 95% of fair market
                                   rental value on
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                                   the first day of the extension period; if
                                   Landlord and Tenant cannot agree on fair
                                   market rental value, each choose an appraiser
                                   which in turn appoints a third appraiser, as
                                   more particularly specified in Section 4.0 of
                                   this Lease.

                    26-30          Fixed for five years at 95% of fair market
                                   rental value on the first day of the
                                   extension period; if Landlord and Tenant
                                   cannot agree on fair market rental value,
                                   each choose an appraiser which in turn
                                   appoints a third appraiser, as more
                                   particularly specified in Section 4.0 of this
                                   Lease.

     Tenant Address:               Coastal Bank
                                   P.O. Box 8550
                                   Portland, Maine 04104
                                   Attention: President & CEO

                                   With a copy to:

                                   Eric F. Saunders, Esq.
                                   Bernstein, Shur, Sawyer & Nelson, P.A.
                                   100 Middle Street, West Tower
                                   P.O. Box 9729
                                   Portland, ME 04104-5029

     Landlord Address:             Olympia Equity Investors III, L.P.
                                   500 Main Street
                                   Bangor, ME 04401
                                   Attention: Kevin P. Mahaney

                                   With a copy to:

                                   George F. Eaton II, Esq.
                                   Rudman & Winchell LLC
                                   84 Harlow Street
                                   P.O. Box 1401
                                   Bangor, ME 04402

     Building: A three story office building comprising approximately 29,111
               square feet of Gross Rentable Area, as more particularly
               specified hereinbelow.

     Construction
     Representatives:              Landlord:    Gary R. Guerette, Alliance
                                                Construction Incorporated
                                                160 Pleasant Hill Road
                                                Scarborough, ME 04074

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                                   Tenant:      Edmond Theriault
                                                Theriault/Landmann Associates
                                                118 Congress Street
                                                Portland, ME 04101

     Final Specifications Date:    November 8, 1999

     Delivery Date:                April 1, 2000

     Outside Delivery Date:        May 1, 2000

     1.2. Definitions

     For purposes of this Lease, the following terms have the following
meanings, unless the context clearly requires otherwise.

     Building means the building to be constructed on the Premises pursuant to
Section 2.0.

     Commencement Date means the date that Landlord delivers complete and
exclusive actual possession of the Premises to Tenant under Section 2.3.1.

     CPI means the Consumer Price Index - All Urban Workers (CPI-U) - All
Items - U.S. City Average (1982-84=100) (not seasonally adjusted), as reported
by the U.S. Department of Labor, Bureau of Labor Statistics for January of the
respective year. In the event that the CPI as defined is no longer available,
the parties will substitute the most directly comparable index then available.

     The CPI Change  is calculated by taking the CPI for January of the current
year and subtracting the CPI for January of the prior year to obtain the index
point change.  The index point change is divided by the CPI for January of the
prior year, and 1.0 is added to the result.

     Excess Rental Proceeds means proceeds of certain subleases by Tenant during
an Extended Term, as described in Section 4.1.

     Gross Rentable Area means the square footage amount calculated to exist in
the Building as described in Schedule 1.1.

     Hazardous Material means any and all materials or substances which are
defined as "hazardous waste" or "hazardous substance" under any state, federal,
or local law, and includes asbestos, waste oil, and petroleum products.

     Landlord means Olympia Equity Investors III, L.P., or any party succeeding
to the rights and responsibilities of Landlord under this Lease.

                                      -3-
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     Landlord's Work means the work to be performed by Landlord as described in
Section 2.4, as further described in Exhibit C and in plans and specifications
provided for herein.

     Lease means this Lease Agreement.

     Lease Year means the one-year period from the Commencement Date to one day
prior to the first anniversary of the Commencement Date, and each succeeding
following year during the term of this Lease, including any extension or renewal
hereof.

     Premises means the Gross Rentable Area in the Building leased to Tenant
under this Lease, together with all appurtenances and rights granted with
respect to the Premises, the Building and the Site, as provided in Section 2.0.

     Site means the certain tract of land in Portland, Maine shown on Exhibit A
and the legal description for which tract appears as Exhibit B.

     Tenant's Work means the work to be performed by Tenant as described in
Section 2.5, as further described in Exhibit D.

     1.3. Conditions to the Tenant's Obligations

     The Tenant's obligations under this Lease are subject to the following
conditions. If the following conditions are not satisfied by the Final
Specifications Date (or such other date as specified therein), the Tenant may
terminate its obligations under this Lease by written notice to the Landlord,
whereupon each party shall thereafter be released from any further obligations
to the other hereunder:

     a. Landlord, at Landlord's expense, obtaining all municipal, state and
federal approvals to construct the Building;  Tenant's right to terminate its
obligations under this paragraph shall expire if not exercised by the earlier of
the receipt of all required approvals or midnight, November 8, 1999.

     b. Interior design for Tenant's space shall be Tenant's responsibility,
subject to Landlord's approval, which shall not be unreasonably withheld, and
unless otherwise agreed shall be completed on or before November 8, 1999.

     c. Exterior design shall be conditioned on mutual approval of Landlord and
Tenant prior to the Final Specifications Date.

     d. Site plan shall be jointly designed and approved by Landlord and Tenant,
prior to the Final Specifications Date, at Landlord's expense, including
location and size of Building footprint, branch entrance, parking, and drive
through facility as well as traffic circulation.

     e. Tenant shall have the exclusive right to 23 parking spaces on site
(including all 18 spaces adjacent to the West entrance to the Building),
exclusive rights to 29 of the 50 spaces

                                      -4-
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immediately South of the Site, which Tenant may designate by signs or striping
as exclusive to Tenant (the "Exclusive Off-Site Spaces"), and rights in common
with other tenants of the Building to 42 other parking spaces on the adjacent
DoubleTree Hotel parking lot (the "Non-Exclusive Off-Site Spaces"), as generally
designated on Schedule 2.2, together with customer access to the Site from
Sewall Street or other entry points to the DoubleTree Hotel (as they may change
from time to time) without charge. The designated Exclusive Off-Site Spaces
shall be reserved by signage for the Tenant's exclusive use during business
hours, 7:30 a.m. to 5:30 p.m. each day that the Tenant is open for business. A
sublease with respect to the Off-Site Spaces and access to the Site across
property of the DoubleTree Hotel will be provided without cost covering the
duration of this Lease and all renewals, provided that Tenant shall be
responsible for an equitable portion of the cost of maintaining parking areas on
DoubleTree property reserved for Tenant's primary use and shall carry
appropriate property and liability insurance naming the owner of the DoubleTree
as a co-insured in connection with such spaces. The sublease with respect to the
parking spaces on and access across the DoubleTree premises shall be in a form
satisfactory to Tenant and executable by Tenant and Landlord on or before the
Final Specifications Date.

     f. Landlord shall provide satisfactory evidence of financial capacity of
Landlord and Landlord's contractor to complete construction of the Building, and
Landlord, Tenant and Landlord's mortgage holder(s) shall enter into a non-
disturbance and recognition agreement on or before Landlord closes construction
financing for construction of the Building, in a form reasonably satisfactory to
Tenant, providing for recognition of Tenant's tenancy pursuant to the Lease and
the right of Landlord to use condemnation and insurance proceeds as required
under the Lease.

     1.4. Conditions to the Landlord's Obligations

     The Landlord's obligations under this Lease may be terminated in the event
that Landlord does not receive from Tenant approvals for exterior design and the
Site Plan by the Final Specifications Date, and Tenant's final proposed interior
designs by November 8, 1999.  Such termination must be exercised by November 8,
1999, unless extended by mutual written agreement of the Landlord and Tenant.

     SECTION 2.0 LEASE OF PREMISES
     -----------------------------

     2.1. Premises.

     2.1.1.  Description.  In consideration of the mutual covenants and
agreements herein contained, Landlord hereby leases to Tenant premises of
approximately 18,757 square feet of Gross Rentable Area, encompassing the entire
first and second floors of the Building to be located at the Premises Address,
together with all appurtenances and the rights granted with respect to the
Premises, including without limitation parking, access, and exclusive rights to
the drive-through banking facility and access and egress thereto to be specified
on Schedule 2.1 or elsewhere in this Lease (collectively the "Premises").

                                      -5-
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     2.1.2.  Additional Space.  Tenant shall have the first right at any time to
lease under the terms of this Lease any other space that becomes available in
the Building following the Commencement Date, whether by expiration or breach of
other leases, expansion of the Building, or otherwise.  This option must be
exercised in writing by Tenant within thirty (30) days after the date Tenant
receives written notice from Landlord that space is available, which notice
shall be given by Landlord no earlier than one year prior to the expiration or
termination of the lease for the subject option space.  The Tenant's option
shall expire if not exercised within said thirty (30) day period.

     2.2. Building and Site. The building to be constructed on the Premises (the
"Building") is or will be located on that certain entire tract of land, which is
shown approximately on Exhibit A and legally described on Exhibit B (the
"Site"). There is appurtenant to the Site for the purposes hereof the leased
parking rights granted by adjacent property owners as specified on Schedule 2.2.
The Building upon delivery to Tenant and all appurtenances and parking rights
shall be considered a part of the Premises.

     During construction of the Building, no sign identifying a mortgagee or
other financial institution shall be permitted on the Site.  Subject to
applicable law, Tenant at its option and cost may place a sign or signs at the
Site identifying it as the future headquarters of Tenant.  Placement of the sign
or signs shall be determined by agreement of Landlord and Tenant so as to ensure
adequate visibility without interfering with construction.

     2.3. Possession

           2.3.1. Delivery of Possession. Upon completion of Landlord's Work in
accordance with the requirements of this Lease, Landlord will put Tenant in
complete and exclusive actual possession of the Premises in the condition and on
the terms set forth herein. The date of delivery of possession shall be the
"Commencement Date."

           2.3.2. Date of Delivery. Landlord will use its commercially
reasonable efforts to complete Landlord's Work and to deliver possession by the
Delivery Date. If, for any reason other than an event set forth in Section 26,
Landlord fails to deliver possession by the Delivery Date, then except as
provided in the penultimate sentence of this paragraph, Tenant shall be given
one day of Base Rent and additional charges free for every day after the
Delivery Date Landlord fails to so deliver possession. If, for any reason
Landlord fails to deliver possession by the Outside Delivery Date, Tenant may,
at its option, take possession of the Premises in their then current condition
(which shall not relieve Landlord of its obligation to complete Landlord's
Work), or terminate this Lease by notice any time prior to Landlord's actual
delivery of possession, all without prejudice to Tenant's other remedies. In the
event that Tenant elects to occupy the Building after the Outside Delivery Date
but prior to completion of Landlord's Work, (a) Tenant's obligation for rent
shall be limited to fifty percent (50%) of the Base Rent attributable to the
Gross Rentable Area actually occupied by the Tenant until completion of
Landlord's Work with respect to such portion, and (b) Tenant shall be given one
day of Base

                                      -6-
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Rent and additional charges free for the remaining portion of the Premises not
actually occupied by Tenant until completion of Landlord's Work with respect to
such portion. With Landlord's consent, Tenant may occupy a portion of the
Premises prior to the Commencement Date upon payment of rent in an amount
mutually agreed upon by Landlord and Tenant.

          2.3.3. Condition of Premises. Landlord warrants that upon delivery of
possession (i) Landlord's Work shall be complete; and (ii) all improvements to
the Site as shown on Exhibit A or contained in the Final Specifications will
have been completed and will have been constructed in a good and workmanlike
manner, in conformance with the Final Specifications, except that if delivery of
possession is made during the winter months, certain seasonal work (such as
final paving or landscaping) may be deferred until the earliest practicable time
in accordance with customary development practices, provided that such work
would not restrict or inhibit Tenant's intended use and quiet enjoyment of the
Premises.

          2.3.4. Failure to Deliver. Additionally, and in addition to and
without limitation or waiver of any of Tenant's other rights and remedies under
the Lease or at law or equity, if for any reason Landlord fails to deliver
possession of the Premises by the Outside Delivery Date, then Landlord shall be
considered in default of this Lease.  Tenant may, in its sole discretion, elect
to take possession of the Premises, Site and Building and complete the
Landlord's Work by giving written notice of such election to Landlord.  Upon the
receipt of such written notice, Landlord shall assign to Tenant all of the
development permits, approvals, licenses and contracts (including without limit,
building permits, governmental approvals, contracts with construction managers
and contractors) (collectively, the "Development Documents") as are necessary in
Tenant's opinion to permit Tenant to complete the unfinished portions of the
Landlord's Work.

     Tenant is hereby granted the absolute right and easement to access and use
of the Site and Building as is necessary to complete Landlord's Work in
accordance with this Section and such entry shall not be deemed to constitute
possession of the Premises or to obligate Tenant to pay Base Rent or any other
charges under the Lease, such entry and use to be free of charge, and subject
further to Tenant's offset and deduction rights.

     Subject to any conditional assignments to Landlord's construction lender,
Landlord hereby agrees to and hereby does absolutely assign, transfer and
deliver to Tenant all existing and future Development Documents and all
Landlord's right, title and interest therein and agrees to evidence this
assignment by separate agreement(s) and to take other steps reasonably deemed
necessary by Tenant to effectuate Tenant's rights under this section (including
without limit obtaining the consent and agreement of all governmental
authorities, contractors and consultants to this assignment and to the
substitute performance by Tenant under the Development Documents) upon request
of Tenant.  With respect to any Development Documents which require the consent
of Landlord to their assignment as aforesaid, this Section shall be deemed to
constitute such consent.  Notwithstanding the foregoing assignment, Tenant shall
refrain from performing any of Landlord's Work except in accordance with the
provisions of this Section of the Lease.  Landlord specifically agrees that its
indemnification and hold harmless obligations under this Lease include all the
costs, liens, damages, expenses, fees (including without limit legal and
attorneys' fees), rents, and other items or harms suffered or incurred by Tenant
and

                                      -7-
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related to Landlord's default in its performance of Landlord's Work and in its
obligation to timely deliver the Premises in accordance with this Lease and/or
related to the performance by Tenant of Landlord's Work, and in the event
Landlord defaults in such indemnification obligations, Tenant shall have the
continuing right to offset against and deduct from its rental obligations
hereunder until repaid in full all the foregoing described costs, damages,
expenses, etc.

     In the event that Tenant elects to proceed under this Section to complete
or arrange completion of Landlord's Work, then the Commencement Date shall occur
upon completion of such Landlord's Work and acceptance by Tenant of possession
of the Premises.  The remaining terms of this Lease shall apply, subject to such
rights of offset and other Tenant remedies provided for by this Section.

     Tenant by exercising its rights under this Section shall not be deemed to
waive any of Tenant's other rights and remedies hereunder and at law or equity.
The arbitration provisions of this Lease shall not apply to Tenant's exercise of
its rights under this Section or disputes related to such exercise or related to
the conduct of Landlord's Work by Tenant.  This section shall not be considered
to obligate Tenant in any way to perform Landlord's Work and shall not be deemed
to create any rights or causes of action in favor of any third party.

     2.4. Landlord's Work. Prior to the delivery of possession, Landlord shall
perform the work described in this Section 2.4 as follows ("Landlord's Work"):

          2.4.1. Plans and Specifications. Landlord shall perform the work
described on Exhibit C, including the work contemplated by the schedule of
preliminary specifications and preliminary plans (collectively the "Preliminary
Specifications"). Prior to the Final Specifications Date, Landlord will submit
for Tenant's approval detailed plans, working drawings and detailed
specifications ("Final Specifications"), which Final Specifications shall be in
conformity with the Preliminary Specifications. Tenant agrees to approve or
comment upon any such submittals by Landlord within 10 days after submission
thereof to Tenant. If Tenant does not so approve or comment upon such submittals
within 5 days after notice to Tenant that the aforesaid 10-day period has
expired, the same shall constitute a "Tenant Delay" with the Delivery Date, and
the Outside Delivery Date being extended one day for each day after the
expiration of said 5-day period that Tenant fails to so approve or comment upon
such submittals and with delivery of possession being deemed to have occurred
one day earlier than Landlord's actual delivery of possession for each day after
the expiration of said 5-day period that Tenant fails to so approve or comment
upon such submittals. The Final Specifications shall become a part of this Lease
upon approval by Tenant.

          2.4.2. Landlord's Work Schedule; Permits. Landlord's Work will be
commenced within 10 days after mutual approval of the Final Specifications and
receipt of all necessary permits and approvals for Landlord's Work, which
permits and approvals Landlord shall diligently proceed to obtain. All building
permits, temporary and permanent certificates of occupancy and other
governmental approvals required to construct and to permit occupancy of the
Premises for Tenant's intended use shall be obtained by Landlord at Landlord's
expense

                                      -8-
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(except for particular licenses or use permits normally obtained by Tenant for
the conduct of its business, including but not limited to signage permits for
Tenant).

          2.4.3. Performance of Work. Landlord's Work will be prosecuted to
completion with due diligence and will be done at Landlord's expense, except
that any increase in the cost to Landlord caused by changes made by Tenant after
approval by Tenant of the Final Specifications shall be borne by Tenant and
shall be paid to Landlord as and when bills are rendered therefor. Landlord's
Work shall not be commenced until after the Final Specifications for such work
have been approved, shall be performed in a good and workmanlike manner in
compliance with the Final Specifications (as modified with the approval of
Tenant and subject to field modifications of a minor nature which are due to
field conditions and do not materially affect the utility or appearance of the
Premises), and shall be in compliance with all building codes and other
applicable laws and regulations of governmental authorities or boards of fire
insurance underwriters or the like.

          2.4.4. Tenant's Access. Tenant may enter the Premises to inspect the
progress of Landlord's Work, to perform Tenant's Work, and to determine if
Landlord's Work is being performed in accordance with the requirements of the
Lease without being deemed to have taken possession or having obligated itself
to pay Base Rent, additional charges or other charges, provided, however, that
Tenant agrees that it shall not unreasonably interfere with Landlord's Work.

          2.4.5. Acceptance of the Premises. Subject to Section 2.4.6,
Landlord's Work will be deemed accepted by Tenant 90 days after the Commencement
Date except for items (i) which are not completed or do not conform to the
requirements and standards set forth in this Lease, and (ii) as to which Tenant
has so notified Landlord provided such items could reasonably be discovered
within such 90 day period, which items Landlord agrees to promptly complete or
remedy at no cost to Tenant following notice from Tenant.  The foregoing shall
not limit Tenant's rights under the Landlord's Guarantee in (S)2.4.6.

          2.4.6. Landlord's Guarantee of Construction. Landlord agrees to
correct, at no cost to Tenant, any defects in Landlord's Work provided Tenant
gives written notice of such defects to Landlord prior to the first anniversary
of the Commencement Date. This time limitation shall not apply to latent defects
in Landlord's Work which Tenant did not discover prior to the expiration of such
time period. Landlord shall maintain on file warranties and guaranties
pertaining to contractors' work and the mechanical systems of the Premises.
Landlord shall assign (to the extent assignable) all guaranties and warranties
to Tenant which relate to equipment and other portions of the Premises Tenant is
to maintain.

     2.5. Tenant's Work. Tenant shall have the right to perform the work to be
done by Tenant to ready the Premises for the Tenant's business ("Tenant's
Work"), including without limitation the installation of fixtures and other
equipment, and erection of signs, all as described on Exhibit D. Tenant shall
use reasonable efforts to obtain all governmental permits and approvals required
for Tenant's Work (including conforming same (including signage) to applicable
codes). Tenant's Work shall be done in a good and workmanlike manner and in
compliance with all

                                      -9-
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applicable laws. Tenant shall keep the Premises free of liens. Tenant may enter
upon the Premises prior to delivery of possession to perform Tenant's Work and
to prepare the Premises for Tenant's use provided Tenant will not unreasonably
interfere with Landlord's Work. Such action shall not be deemed or construed to
constitute delivery or acceptance of possession of the Premises by Tenant. Prior
to the commencement of any of Tenant's Work and upon Landlord's request, Tenant
will submit evidence of the insurance required pursuant to this Lease and
evidence of workmen's compensation insurance.

     2.6. Construction Representatives. Each party authorizes the other to rely
in connection with plans and construction upon approval and other actions on the
party's behalf by its respective Construction Representative or any other or
additional persons hereafter designated.

     SECTION 3.0 TERM. This Lease shall be for a term of ten (10) years
     ----------------
commencing on the Commencement Date and terminating on the tenth anniversary of
the Commencement Date (the "Initial Term").  Tenant shall have no payment or
performance obligations hereunder until the Commencement Date.  Provided the
Lease is in full force and effect and Tenant is not then in default hereunder
(after notice and the expiration of the applicable cure period), Tenant may
extend the Term for the Extended Term by giving Landlord notice of its election
to do so no less than one year prior to the beginning of the first Extended Term
and not less than one year prior to the beginning of each succeeding Extended
Term. If Landlord fails to notify Tenant that Tenant has failed to make such
election, Tenant shall retain its rights to extend the term until, and (unless
Tenant shall elect to extend the term) the term of the Lease shall be deemed to
have been extended by one year from, the later to occur of (a) five (5) business
days response time after the delivery of such notice by Landlord, or (b) the
express waiver of the right to extend by Tenant.  During such one-year extension
following expiration of the normal term, all other provisions with respect to
the Extended Term shall apply.

     SECTION 4.0 RENT. Tenant agrees to pay to Landlord at Landlord's mailing
     ----------------
address identified above, or at such other place as Landlord shall from time to
time designate in writing, Base Rent as specified in Section 1, in equal monthly
installments, and proportionately at such rate for any partial month, which Base
Rent shall be paid monthly in advance on the first day of each and every
calendar month during the term and any Extended Term hereof. Fair market rental
value for purposes of determining Base Rent for Lease Years 21-25 and 26-30
shall be the annual rental charge as of the commencement date of the then
applicable renewal Term for new leases then being negotiated or executed for
comparable space in the greater Portland, Maine area for terms commencing on or
about the date of commencement and ending as of the expiration of the applicable
renewal Term (including further Extension Terms). Landlord and Tenant shall in
good faith attempt to agree in writing on the Base Rent within 30 days after
Landlord's receipt of Tenant's notice of its exercise of the renewal option. If
Landlord and Tenant cannot so agree, Base Rent shall be determined by
appraisers, one each to be chosen by Landlord and Tenant, and, if necessary, a
third to be selected as provided below. All appraisers shall be MAI certified,
familiar with commercial space, leases and rents in the greater Portland, Maine
area, and shall have at least 10 years experience in making real estate
appraisals. Landlord and Tenant shall notify each other of its selected
appraiser within 5 days following the expiration of such 30 day period, The
initial appraisers shall render their written appraisals of Base Rent

                                      -10-
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within 30 days after their appointment. If such appraisals are less than 5%
apart, then Base Rent shall be deemed to be the average of the two appraisals.
Otherwise, the initial appraisers shall promptly select a third appraiser who
shall submit its appraisal to Landlord and Tenant within 21 days after its
appointment. The appraisal falling between the other two appraisals shall be
binding upon Landlord and Tenant. The cost of each of the initial appraisers
shall be paid by the party selecting such appraiser and the cost of the third
appraiser shall be shared equally between Landlord and Tenant.

Landlord and Tenant agree that the Base Rent includes the right of Tenant to the
parking spaces described in (S)1.3(e) without payment of additional rent
(subject to Tenant's responsibility for repair and maintenance charges as
provided herein and in a sublease with respect to certain of the parking
spaces).  In the event that Tenant becomes obligated to pay to Landlord's
lessor, or to any other party, rent with respect to such parking spaces, Tenant
shall be entitled to set off such payments against the Base Rent provided
herein.

     4.1  Excess Rental Proceeds. During any Extended Term of this Lease, Tenant
shall pay Landlord seventy percent (70%) of "Excess Rental Proceeds" received
from subleases by Tenant to third parties (excluding the Landlord or its
affiliates). Excess Rental Proceeds are any rental proceeds, regardless of how
denominated, in excess of the rental amount then payable to Landlord, net of all
of Tenant's verifiable costs associated with subletting the subject space.
Excess Rental Proceeds shall not include (1) actual common area maintenance
charges calculated in proportion to Gross Rentable Area in the Building; (2)
amounts paid to Tenant by a corporation or entity controlled by, or under common
control with, the Tenant; or (3) amounts paid to Tenant by a third party under a
space lease arrangement where the third party provides financial services to
Tenant's banking customers at Tenant's offices. Excess Rental Proceeds shall be
calculated cumulatively based on each entire option period exercised. Cumulative
Excess Rental Proceeds shall be deposited in Tenant's account and shall
accumulate interest at Coastal Bank's or its successor's prime rate. At its sole
option, Tenant may remit all or part of the Excess Rental Proceeds earlier or at
shorter intervals. The balance of said Excess Rental Proceeds, together with
interest earned thereon, shall be transferred to Landlord at the expiration of
the exercised option period. Tenant shall notify Landlord after the end of each
exercised option year of the current balance in the Excess Rental Proceeds
account.

     4.2  Additional Rent. In addition to the aforesaid rent, Tenant agrees to
pay as additional rent all such sums as are due and payable by Tenant to or on
behalf of Landlord pursuant to any of the subsequent provisions of this Lease,
and the failure of Tenant to pay any sums required hereunder shall be deemed as
a failure to pay rent. Landlord appoints Tenant the attorney-in-fact of Landlord
for the purpose of making all payments to be made by Tenant pursuant to any of
the provisions of this Lease to persons other than Landlord.

     4.3  Net Lease. This Lease is intended as a net lease, and the minimum
rent, additional rent, and all other sums payable hereunder to or on behalf of
Landlord shall be paid by Tenant without notice or demand, and without set-off,
abatement, suspension, deduction, or defense, except as set forth herein. Under
no circumstances or conditions whether now existing or hereinafter arising, or
whether within or beyond the present contemplation of the parties shall

                                      -11-
<PAGE>

Landlord or Landlord's successors or assigns be expected or required to make any
payment of any kind whatsoever, or be under any other obligation or liability
hereunder, except as specifically and expressly provided in this Lease. This
Lease shall always be construed in order to effectuate the foregoing declared
intent of the parties.

     SECTION 5.0 SECURITY DEPOSIT. There shall be no security deposit in
     ----------------------------
connection with this Lease.

     SECTION 6.0 USE. Tenant shall initially utilize the Premises for a retail
     ---------------
and commercial bank office of Coastal Bank, including three drive-through lanes,
office space and open office operations space. As long as Tenant is utilizing at
least the first floor of the Premises as a retail and commercial bank office
with offices (including herein any use by subtenants of portions of the first
floor to provide financial and related services incidental to Tenant's banking
services), upon written notice to the Landlord which shall include a copy of the
proposed sublease, Tenant shall have the right to sublease portions of the
Premises for such general office (including but not limited to professional
medical offices) and first floor retail uses as Tenant reasonably deems to be
compatible with the principal bank branch/general office purpose and character
of the Building and Site. In the event Tenant discontinues use of at least the
first floor of the Premises as a retail and commercial bank office with offices
(including herein any use by subtenants of portions of the first floor to
provide financial and related services incidental to Tenant's banking services),
upon written notice to the Landlord which shall include a copy of the proposed
sublease, Tenant and its subtenants shall have the right to sublet the Premises
for first floor retail and for general office purposes (including but not
limited to professional medical offices), provided the business of any proposed
subtenant shall not consist of a restaurant or food service, and is consistent
with the other uses and the standards of the Premises as determined in the
Landlord's reasonable judgment. Tenant shall obtain, at Tenant's expense, all
permits, licenses, and approvals required by any federal, state, or local
authority in connection with said use. Tenant shall not permit any nuisance on
the Premises, nor use or permit any use of the Premises which is contrary to any
law or ordinance, nor permit any use which will invalidate any policy of
insurance or materially or adversely affect the value of the Premises.

     SECTION 7.0 COVENANT OF QUIET ENJOYMENT. So long as Tenant is not in
     ---------------------------------------
default hereunder, Tenant shall have the peaceful and quiet use and possession
of the Premises during the term hereof, subject to the terms and provisions of
this Lease; but it is understood and agreed that this covenant and any and all
other covenants of Landlord contained in this Lease shall be binding upon
Landlord and Landlord's successors only with respect to breaches occurring
during Landlord's and Landlord's successors' respective ownership of the
Landlord's interest in the Premises.

     SECTION 8.0 UTILITIES. Tenant shall adequately heat and air condition the
     ---------------------
Premises and shall pay all charges for all utilities furnished to the Premises,
including but not limited to gas, steam, water, electricity and sewer and
telephone service. Tenant will make its own arrangements for delivery of all
necessary heating fuel to the Premises and will pay when due all charges for
such fuel. Landlord shall in no event be liable for any interruption or failure
of utilities or other services on the Premises, except if caused by Landlord's
negligence.

                                      -12-
<PAGE>

SECTION 9.0 TAXES.
------------------

     9.1.  Landlord shall pay, or cause to be paid, before the same become
delinquent, all real estate taxes, including assessments for local improvements
and any and all other governmental levies or charges of any kind that are levied
upon or assessed against or with respect to the Building and the Site, or any
part thereof, during the term of this Lease.  Tenant shall establish for the
benefit of Landlord a tax escrow account in a federally insured depository
institution, which may at Tenant's election be the Tenant, and shall make
monthly payments into such tax escrow account in an amount reasonably calculated
by Tenant to total (as of the next due date for payment of such taxes) the real
estate taxes apportioned to Tenant under this Lease.  Any interest on such tax
escrow account shall be payable to Tenant.  Landlord shall be entitled to a
monthly accounting of the tax escrow account.  Tenant shall reimburse Landlord,
within 10 business days of being invoiced therefor, for a portion of  such taxes
equal to Tenant's proportionate share of the Gross Rentable Area of the
Building.  Tenant's liability shall be further pro-rated with respect to any
portion of a tax year in which Tenant leases a portion of the Building.

     9.2.  Without postponing payment or otherwise adversely affecting Landlord,
Tenant may prosecute appropriate proceedings in the name of Landlord or Tenant
or both, but at the sole cost and expense of Tenant, to contest the validity or
amount of any such taxes or assessments, or to recover payments therefor, and
shall indemnify and save Landlord harmless from all costs and expenses in
connection therewith. Landlord shall cooperate with Tenant with respect to such
proceedings so far as reasonably necessary, provided that Landlord shall not be
obligated to incur any expense in connection with such cooperation. Such
contests by appropriate proceedings by the Tenant of any such tax assessments
shall be undertaken only with the prior express written consent of Landlord,
which consent shall not be unreasonably withheld, conditioned or delayed.

     9.3.  Tenant shall also pay all personal property taxes assessed or imposed
upon all fixtures and equipment or other personal property of every type owned
by Tenant and situated in or upon the Premises, and Tenant shall pay all license
fees or other governmental charges which may be imposed upon the Premises or the
activities of Tenant.

     9.4.  The foregoing provisions are predicated upon the present system of
taxation in the State of Maine. If taxes upon rentals shall be substituted, in
whole or in part, for the present ad valorem real estate taxes, then Tenant
agrees to pay such additional taxes on rentals whether the same shall be in
addition to or substitute for present ad valorem real estate taxes. Further, if
there is any other change in the system of taxation which is in substitution or
in addition to the present system, Tenant agrees to pay all such taxes.

     9.5.  Landlord shall cooperate with and assist the Tenant (at Tenant's
cost) in applying for Tax Increment Financing (TIF) to abate Tenant's share of
real estate taxes with the City of Portland. A reduction in taxes associated
with a successful TIF application shall be passed through to the Tenant and
Landlord on a 90%/10% basis, respectively.

                                      -13-
<PAGE>

     SECTION 10.0 PERSONAL PROPERTY.
     ------------------------------

     10.1. Tenant may install equipment, machinery, and trade fixtures
necessary to carry on Tenant's business on the Premises. All such equipment,
machinery, and trade fixtures shall remain the personal property of Tenant, and
may be removed by Tenant at any time before the end of the term of this Lease,
provided that any damage to the Premises by such removal is promptly repaired by
Tenant at Tenant's own expense.

     10.2. All trade fixtures, and personal property of any kind in the
Premises shall be at Tenant's sole risk, and Landlord shall not be liable for
any loss or damage to property of Tenant or others arising from theft, fire,
explosion, breakage of water pipes, steam pipes or other pipes, or by leaking
roofs, or by any other cause whatsoever unless resulting from the willful act of
Landlord.

     SECTION 11.0 REPAIRS OR MAINTENANCE.
     -----------------------------------

     11.1. Tenant shall, at Tenant's sole cost and expense, maintain the
Premises in at least as good condition and repair (reasonable wear and tear
excepted) as they are in at the Commencement Date of this Lease or as they may
be put in thereafter. Tenant shall not permit the Premises to be overloaded,
damaged, stripped or defaced, or suffer any waste. Tenant's duty to maintain and
repair the Building and Site includes, without limitation, all mechanical,
heating, plumbing and electrical components located within or exclusively
serving the Premises, and except as specifically provided in Section 11.4 below,
all structural and nonstructural, interior and exterior portions of the Premises
including glass, vestibules and exterior doors located within or exclusively
serving the Premises and whether constructed or installed by Landlord or by
Tenant.

     11.2. All alterations or repairs required by public authorities with
respect to Tenant's use of the Premises shall be made by Tenant at Tenant's
expense, except those required due to the Landlord's failure to comply with any
law, code or standard applicable, as of the Commencement Date, to Landlord's
Work on the Building or Site, unless such failure is attributable to Tenant's
design and engineering work.

     11.3. With respect to repairs to the Premises which are Tenant's
obligation, if Tenant fails to commence such repairs and complete the same with
reasonable dispatch after notice from Landlord, Landlord may (but shall not be
required to) make or cause such repairs to be made and shall not be responsible
to Tenant for any loss or damage that may accrue to Tenant's business by reason
thereof. All costs and expenses incurred by Landlord in making any such repairs
shall be considered additional rent and shall be payable to Landlord upon
demand.  With respect to repairs to the Premises which are Landlord's
obligation, if Landlord fails to commence such repairs and complete the same
with reasonable dispatch after notice from Tenant, Tenant may (but shall not be
required to) make or cause such repairs to be made and shall not be responsible
to Landlord for any loss or damage that may accrue to Landlord by reason
thereof. All costs and expenses incurred by Tenant in making any such repairs
shall be payable to Tenant upon

                                      -14-
<PAGE>

demand.

     11.4. Landlord shall maintain all mechanical, heating, plumbing and
electrical components other than located within or exclusively serving the
Premises, all exterior areas and landscaping in and about the Site, keep any
lawn areas mowed, and keep all driveways, walks, and parking and loading areas
within the Site in good repair and reasonably free of snow and ice. Landlord
shall be responsible for maintaining and keeping reasonably free of snow and ice
parking areas on the adjacent DoubleTree Hotel property reserved for Tenant's
primary use.  Costs of the maintenance provided under this paragraph, other than
capital expenditures or charges that relate to the warranty of Landlord's Work,
shall be chargeable pro rata to tenants of the Building according to their
proportionate share of the Gross Rentable Area of the Building.

     Landlord also agrees to maintain, at its sole cost and expense, the
structural portions of the Building in good order and repair, including
repairing and replacing foundations, structural aspects of floors, structural
supports, roofs (including maintaining the roof in a water-tight condition),
roof structures, structural aspects of walls, exterior wall surfaces, and
structural aspects of canopies. Landlord shall not be responsible for
maintaining and repairing plate glass and other window units, vestibules or
exterior doors serving the Building.  Nothing in this section shall be construed
to eliminate or alter Landlord's obligations (including without limitation
warranty obligations) with respect to Landlord's Work.

     11.5. Effective upon the Commencement Date, Landlord appoints Tenant as
its building manager for the Building.  The building manager shall attend to the
day to day performance of Landlord's obligations hereunder, including without
limitation landscaping, mowing, common area maintenance and snow and ice
removal.  Tenant may perform building management services directly, or may
contract with a third party for such services.  Each tenant in the Building
shall pay to the building manager its pro rata share of expenses not chargeable
to the Landlord, together with a management fee not to exceed four percent
(4.0%) of the Base Rent then payable by such tenant.  So long as the Tenant
serves as building manager, Tenant shall owe no management fee, but shall be
entitled to collect such fees and charges from the remaining tenants.  If such
fees and charges are not paid to Tenant within 5 business days of demand, such
non-payment shall constitute a breach of such tenant's lease, for which the
building manager shall be entitled to, with five (5) business days' prior notice
to Landlord, declare a default under the respective lease and bring appropriate
legal proceedings, including an action for forcible entry and detainer, against
the tenant.  The Landlord may waive the default or direct the building manager
not to proceed against any tenant, provided, however, that in that event, Tenant
shall be reimbursed by Landlord or have an offset against its rent for the
amount of fees and charges owing from each such tenant.

     In the event that Tenant is unwilling to assume or continue building
management responsibilities, then it may relinquish that responsibility to
Landlord.  In the event that Landlord holds management responsibilities
(directly or using a contractor), Landlord shall be entitled to the fees and
charges set forth in the preceding paragraph as additional rent.

     SECTION 12.0 ALTERATIONS. Tenant will not make any structural alterations
     ------------------------
or

                                      -15-
<PAGE>

material changes to the Premises or any part thereof, without first obtaining
Landlord's written approval, which approval will not be unreasonably withheld,
conditioned or delayed. All work done on the Premises, whether by Landlord,
Tenant or any other tenant, shall meet the following requirements, which
requirements shall be incorporated in any lease or sublease by Landlord or
Tenant:

     12.1. The work will not adversely affect the structural strength or
integrity of the Premises;

     12.2. All remodeling shall be done in full conformity with plans and
specifications approved in writing by Landlord and, if visible from the exterior
of the Building, or if a part of a common area, approved in writing by Tenant;

     12.3. All window treatments for the third floor, and any furnishings,
signs or improvements to the common areas shall be subject to Tenant's review
and approval for aesthetic and other purposes; for so long as Tenant exercises
its right to exclusive signature signage of the Building, Tenant shall retain
absolute discretion over aesthetic matters in all public surfaces and common
areas of the Building;

     12.4. All structural improvements and alterations made by Tenant shall
immediately become the property of Landlord and shall remain on the Premises in
the absence of a written agreement to the contrary;

     12.5. All work shall be done in a good and first-class workmanlike manner;

     12.6. Tenants shall abide by all applicable laws, ordinances, regulations,
and insurance requirements including, without limitation, all applicable
requirements for access by disabled persons under the Maine Human Rights Law and
the Americans with Disabilities Act and shall indemnify and hold Landlord
harmless from any loss, cost, or expense arising from such tenant's failure to
comply with such requirements;

     12.7. Tenants shall not permit any mechanics liens, or similar liens, to
remain upon the Premises in connection with any work performed or claimed to
have been performed at the direction of such tenant and shall cause any such
lien to be released of record forthwith (through the filing of a bond or
otherwise) without cost to Landlord.

     SECTION 13.0 INDEMNIFICATION; INSURANCE.
     ----------------------------------------

     13.1  Indemnity. Tenant and Landlord each agree to indemnify and save the
other harmless from and against all claims of whatever nature arising from any
act, omission or negligence of the indemnifying party, or its contractors,
licensees, agents, servants or employees, or arising from any accident, injury,
or damage whatsoever caused to any person or to the property of any person
occurring during the term hereof in or about the Premises. This indemnity and
hold harmless agreement shall include indemnity against all costs, expenses, and
liabilities of any kind whatsoever incurred in or in connection with any such
claim or proceeding brought

                                      -16-
<PAGE>

thereon, and the defense thereof.

     13.2  Liability Insurance. Tenant shall maintain in full force during the
term hereof a policy of public liability and property damage insurance under
which Landlord and Tenant are named as insureds, indemnifying Landlord and
Tenant against all claims, expense and liability for injury to or death of
persons or damage to property which may be claimed to have occurred upon the
Premises. Each such policy shall be noncancelable with respect to Landlord
without (10) days' written notice to Landlord, by certified mail. The minimum
limits of liability of such insurance shall be $2,000,000 for injury or death to
persons, and $2,000,000 with respect to damage to property. Each of the
foregoing limits of insurance may be reasonably increased by Landlord, as
necessary to protect Landlord's interests.

     13.3  Casualty Insurance. Tenant shall, at Tenant's own expense, maintain
fire and casualty insurance providing for insurance to the replacement value of
the Premises, or such lesser amount as is acceptable to Landlord, with extended
coverage on the Building and all improvements located on the Premises and with
carriers and in amounts approved by Landlord and any mortgagee under a mortgage
on the Premises (the "Lender"), such insurance to be payable to Landlord,
Lender, and Tenant, as their interests may appear.  Tenant shall be entitled to
apply the proceeds of such insurance to repair or replace the Building.

     13.4  Release and Waiver of Subrogation. Insofar as and to the extent that
the following provisions may be effective without invalidating or making it
impossible to secure insurance coverage obtainable from responsible insurance
companies doing business in the State of Maine (even though extra premium may
result therefrom), Landlord and Tenant mutually agree that with respect to any
loss which is covered by insurance then being carried by them respectively, the
one carrying such insurance and suffering such loss, releases the other of and
from any and all claims with respect to such loss, to the extent of the
insurance proceeds paid under such policies, and Landlord and Tenant mutually
agree that their respective insurance companies shall have no right of
subrogation against the other on account thereof. In the event that extra
premium is payable by either party as a result of this provision, the other
party shall reimburse the party paying such premium in the amount of such extra
premium. If, at the request of one party, this release and non-subrogation
provision is waived, then the obligation of reimbursement shall cease for such
period of time as such waiver shall be effective, but nothing contained in this
section shall be deemed to modify or otherwise affect releases elsewhere herein
contained of either party from liability for claims.

     13.5  Flood Insurance. If at any time the Premises or any part thereof is
in an area which is identified by the Secretary of the United States Department
of Housing and Urban Development as having special flood hazards and in which
the sale of flood insurance is available under the National Flood Insurance Act,
Tenant shall obtain flood insurance in an amount and form satisfactory to
Landlord.

     13.6  Policies. At or prior to the date Tenant commences Tenant's Work on
the Premises, and thereafter not less than ten (10) days prior to the expiration
date of each expiring policy, original copies or certificates of all insurance
policies required hereunder setting forth in

                                      -17-
<PAGE>

full the provisions thereof, together with satisfactory evidence of the payment
of all premiums then due therefore, shall be delivered by Tenant to Landlord and
shall, upon request of Landlord, also be delivered by Tenant to the holder of
any mortgage affecting the Premises. All such insurance shall be placed with a
responsible insurance company satisfactory to Landlord and authorized to
transact business in the State of Maine.

     SECTION 14.0 COMPLIANCE WITH APPLICABLE LAWS. Tenant shall, throughout the
     --------------------------------------------
term of this Lease and at Tenant's sole expense, promptly observe, comply with
and execute all laws and regulations of all federal, state and municipal
governments and appropriate departments, commissions, boards and officers
thereof and the orders and regulations of the National Board of Fire
Underwriters or any other body now or hereafter exercising similar functions
which may be applicable. Tenant shall keep the Premises equipped with all safety
appliances so required because of Tenant's use of the Premises; and shall
procure any licenses and permits required for any such use. Tenant shall comply
with all governmental laws and regulations from time to time applicable to the
Premises, including but not limited to the requirements of the Americans with
Disabilities Act and the Maine Human Rights Act and any other laws and
regulations relating to providing access and accommodation to persons with
disabilities, and Tenant shall indemnify and hold Landlord harmless from any
loss, cost or liability incurred by Landlord as a result of Tenant's failure to
comply with such requirements.  The provisions of this (S)14 shall be subject to
the limitations and provisions of (S)11.

     SECTION 15.0 HAZARDOUS MATERIALS.  Landlord warrants and covenants to
     --------------------------------
Tenants, its officers, directors, and shareholders, that as of the Commencement
Date the Premises shall not contain any Hazardous Materials, as defined herein,
except in small amounts incidental to their permitted use.  Landlord shall
defend, indemnify and hold harmless Tenant from and against any loss, claims,
penalties, fines, liabilities, settlements, damages, costs, or expenses
(including, without limitation, attorney and consultant fees, court costs and
litigation expenses) arising as a result of any violation by Landlord of the
terms of this Section, or any contamination of the Premises by Hazardous
Materials as a result of action by Landlord or Landlord's agents, employees,
contractors, or invitees.

     15.1  Except in small amounts incidental to their permitted use, Tenant
shall not cause or permit any Hazardous Material to be stored, generated,
brought upon, kept, or used in or about the Premises by Tenant, its agents,
employees, contractors or invitees, without first obtaining Landlord's written
consent.

     15.2  Any Hazardous Material permitted on the Premises, and all containers
therefor, shall be used, kept, stored and disposed of in a manner that complies
with all federal, state and local laws or regulations applicable to any such
Hazardous Material.

     15.3  Tenant will in no event permit or cause any disposal of Hazardous
Materials in or about the Premises.

     15.4  Tenant shall give immediate notice to Landlord of any violation or
potential violation of the provisions of this Section and will at all reasonable
times, upon prior notice as

                                      -18-
<PAGE>

provided elsewhere in this Lease, permit Landlord or its agents to enter the
Premises to inspect the same for compliance with this section.

     15.5  Tenant shall defend, indemnify and hold harmless Landlord from and
against any loss, claims, penalties, fines, liabilities, settlements, damages,
costs, or expenses (including, without limitation, attorney and consultant fees,
court costs and litigation expenses) arising during or after the Lease term as a
result of any violation by Tenant of the terms of this Section, or any
contamination of the Premises or any other land of Landlord by Hazardous
Materials as a result of action by Tenant or Tenant's agents, employees,
contractors, or invitees.

     15.6  The provisions of this section shall be in addition to any other
obligations and liabilities Tenant may have to Landlord at law or equity and
shall survive the transactions contemplated herein and shall survive the
termination of this Lease.

     SECTION 16.0 SIGNS. Provided this Lease is in effect, Tenant shall have the
     ------------------
exclusive use of exterior signage on the Building, which is anticipated to equal
approximately 425 square feet, and Landlord shall have the right to place pylon
signage substantially equivalent to that shown on Exhibit E.  Tenant shall be
allowed the maximum amount of "anchor" signage on the top exterior of the
Building, which is anticipated to equal approximately 365 square feet. Tenant
shall be responsible for sign design and location, subject to municipal approval
and subject to Landlord approval, which shall not be unreasonably withheld.
Landlord will assist Tenant with regard to municipal anchor signage approvals.
Tenant shall be responsible for all of the costs and expenses associated with
the design, permitting, construction, installation and operation of its signage.
Landlord and Tenant shall jointly ensure that the design and construction of the
mechanical penthouse structure are reasonably suitable and accessible for the
installation and maintenance of Tenant's signs.

     SECTION 17.0 EMINENT DOMAIN. In the case of any taking by eminent domain of
     ---------------------------
either the whole or such lesser portion of the Premises as to preclude the use
of the Premises by Tenant for the purpose for which leased, then this Lease
shall terminate on the date of such taking. If only a portion of the Premises is
taken, and such taking does not unreasonably impair the use of the Premises for
the purpose for which leased, the Base Rent shall be reduced for the remainder
of the term, proportionately to the relative value of the portion of the
Premises so taken.  No adjustment to the Base Rent shall be payable hereunder to
Tenant for the anticipated cession to or taking by the City of Portland of land
at or near the Site incidental to the widening of Congress Street, which
widening was made a condition of the approval of the initial site development by
the Planning Board of the City of Portland.

     17.1  Condemnation Award. Should the Premises or any part thereof be taken
by eminent domain, the sums received in payment for the property so taken shall
be paid in their entirety to Landlord, free of any claim by Tenant, except that
Tenant shall be entitled to receive and retain any amount which may be
specifically awarded to Tenant in a condemnation proceeding because of the
taking of any machinery, equipment, trade fixtures, or other property owned by
Tenant on the Premises.  To the extent of such proceeds, Landlord shall be
obligated to reconfigure the Building or the Site to address any material
diminution in access or utility

                                      -19-
<PAGE>

occasioned thereby.

     SECTION 18.0 DAMAGE OR DESTRUCTION. In the event of damage to or
     ----------------------------------
destruction of the Premises or any part thereof from fire or other casualty, at
any time during the term of this Lease prior to the final year of any term,
Landlord, subject to the rights of Landlord's mortgagees, with all reasonable
diligence shall reconstruct, repair, replace or restore the Premises to a
condition such that the value lost by the casualty is substantially restored and
the Premises are capable of continued use, and this obligation shall not be
limited in any way by the amount of available insurance proceeds, provided that
all Tenant's insurance proceeds attributable to the real estate are paid to the
Landlord.  Tenant shall be entitled to an abatement of rent during any period
that a substantial portion of the Building or the Site is incapable of suitable
use.  In the event that such reconstruction or repair shall not be completed
within 120 days of the damage, Tenant shall have the right, at its sole option,
to terminate the Lease.

     SECTION 19.0 ASSIGNMENT OR SUBLETTING. Subject to the other conditions
     -------------------------------------
specified in this Lease, and upon written notice to Landlord including a copy of
the proposed sublease, Tenant shall have the right to sublease all or a portion
of the Premises, provided that  unless Landlord shall release Tenant, Tenant
shall remain fully liable to Landlord for all of the obligations imposed upon
Tenant under this Lease, including without limitation, the obligation to pay the
rent and other charges.

     SECTION 20.0 ACCESS BY LANDLORD. Landlord or any person designated by
     -------------------------------
Landlord shall have the right to enter the Premises at any reasonable time
during normal business hours, upon 48 hours prior notice (except in case of
emergency), for the purpose of inspecting the Premises or to make repairs. For a
period commencing one year prior to the end of the term of this Lease, Landlord
shall have the right to enter the Premises at any reasonable times, for the
purpose of exhibiting the same to prospective tenants or purchasers and shall
have the right to erect a suitable sign on the Premises indicating that the
Premises are available for sale or lease.  Landlord's right of entry shall be
conditioned upon Landlord's agreement to use its best efforts not to
unreasonably disturb Tenant's business, customers or operations.

     SECTION 21.0 SUBORDINATION. This Lease is and shall be subject and
     --------------------------
subordinate to any mortgages that may now exist or hereafter be placed upon the
Premises by Landlord, and to any and all advances to be made thereunder, and all
renewals, replacements, and extensions thereof.  Tenant shall, upon request,
execute and deliver any documents to confirm this subordination, as may be
desired by holders of such mortgages, and if requested by the mortgagee, to
agree not to prepay rent more than ten (10) days in advance, provided that the
holder of such mortgage enters into a non-disturbance agreement with Tenant by
the terms of which such holder agrees not to disturb Tenant's possession of the
Premises so long as Tenant continues to perform all obligations under this
Lease, and, in the event of acquisition of title by such holder through
foreclosure proceedings or otherwise, to accept Tenant as tenant of the Premises
under the terms and conditions of this Lease and to perform Landlord's
obligations under this Lease (but only while owner of the Premises), and to
permit the use of insurance and condemnation proceeds according to the terms of
this Lease regardless of the terms of the mortgage, and Tenant agrees to attorn
to and recognize such holder or any other person acquiring

                                      -20-
<PAGE>

title to the Premises as Landlord.

     SECTION 22.0 ESTOPPEL CERTIFICATES. Tenant agrees, upon at least ten (10)
     ----------------------------------
days prior written request by Landlord from time to time, to execute,
acknowledge, and deliver to Landlord a written statement certifying that this
Lease is unmodified and in full force and effect (or that the same is in full
force and effect as modified, listing the modifications), the date to which rent
and other charges have been paid, and whether or not to the best of Tenant's
knowledge Landlord is in default hereunder (and if so, specifying the nature of
the default), it being intended that any such statement delivered pursuant to
this section may be relied upon by a prospective purchaser or mortgagee of
Landlord's interest in the Premises.

   SECTION 23.0 DEFAULT. The following events shall be deemed to be events of
   --------------------
default by Tenant under this Lease:

     23.1  Tenant shall fail to pay any installment of rent or any other
payment to Landlord or other parties required herein, when due, and such failure
shall continue for a period of five (5) days following written demand, or Tenant
shall fail to pay two installments of rent when due within a twelve-month
period;

     23.2  Tenant shall become insolvent or make a transfer in fraud of
creditors;

     23.3  A petition shall be filed against Tenant under any state or federal
bankruptcy or insolvency laws or under any similar law or statute of the United
States or any state, and not discharged within sixty (60) days after such
filing, or Tenant shall file such petition, or Tenant shall be adjudged bankrupt
or insolvent in any proceeding;

     23.4  Any assignment shall be made of the property of Tenant for the
benefit of creditors, or a receiver, guardian, conservator, trustee in
involuntary bankruptcy or other similar officer shall be appointed to take
charge of all or any substantial part of Tenant's property, or the estate hereby
created shall be taken on execution or by other process of law;

     23.5  Tenant shall fail to comply with any covenant, term, or provision of
this Lease (other than the payment of rent and other charges) and shall not cure
such failure within ten (10) days after written notice thereof to Tenant, or
such additional time as is reasonably required to correct such failure.

     Upon the occurrence of any of the foregoing events of default, Landlord
may, immediately or at any time thereafter and without demand or notice, enter
into and upon the Premises or any part thereof in the name of the whole and
repossess the same as of Landlord's former estate, and expel Tenant and those
claiming through or under Tenant and remove all personal property and effects,
forcibly if necessary, without being deemed guilty of any manner of trespass and
without prejudice to any remedies which might otherwise be used for arrears of
rents or preceding breach of covenant, and upon entry as aforesaid this Lease
shall terminate. Notwithstanding any entry or re-entry by Landlord whether by
summary proceedings, termination or otherwise, Tenant shall remain liable for
and agrees to pay, on the days originally

                                      -21-
<PAGE>

fixed herein for the payment thereof, amounts equal to the several installments
of rent and other charges reserved as they would, under the terms of this Lease,
become due if this Lease had not been terminated or if Landlord had not entered
or re-entered as aforesaid, and whether the Premises be relet or remain vacant
in whole or in part or for a period less than the remainder of the term, but in
the event the Premises be relet by Landlord for the benefit of Tenant, Tenant
shall be entitled to a credit in the net amount of rent received by Landlord
after deduction of all expenses incurred in reletting (including, without
limitation, remodeling costs, attorneys' and brokerage fees, and the like).

     SECTION 24.0 DEFAULT BY LANDLORD. In the event of any default by Landlord
     --------------------------------
 in the observance or performance of any obligation on Landlord's part to be
observed or performed under this Lease (including, without limitation,
Landlord's Work, Tenant's Work or any item on the Punch List) (as the case may
be, a "Landlord Default"), Tenant shall give Landlord written notice specifying
such Landlord Default with particularity and Landlord shall thereupon have
thirty (30) days in which cure any such Landlord Default; provided, however,
that if the nature of the Landlord Default is such that more than thirty (30)
days are required for its cure, then Landlord shall not be defaulted if Landlord
commences performance within said thirty (30) days and thereafter diligently
prosecutes the same to completion. If Landlord fails to cure any Landlord
Default after such notice and cure period, Tenant may remedy the breach or
default and deduct the reasonable cost, including interest thereon at the Prime
Rate reported in The Wall Street Journal, from the charges and rent due
hereunder and Tenant may additionally pursue any other legal or equitable remedy
for which it is entitled. Excepted from the cure periods provided in this
section are Landlord defaults related to the conduct or completion of Landlord's
Work in accordance with the Lease, for which there shall be no cure periods and
for which there shall be no notice requirements except as specifically required
or provided for in other sections of this Lease.

     SECTION 25.0 REIMBURSEMENT FOR COSTS, ATTORNEYS' FEES. Landlord or Tenant
     -----------------------------------------------------
mutually agree to pay to and indemnify the other against all legal costs and
charges, including attorneys' fees reasonably incurred, in enforcing any
obligation or covenant of the indemnifying party. If either party or any of its
agents or employees shall become a party to or participate in any judicial or
administrative proceeding brought against the other party, and which arises as a
result of it being a party to this Lease, that litigant shall pay and indemnify
the first party against all costs and charges, including reasonable attorneys'
fees, which it or its agents or employees shall incur.

     SECTION 26.0 FORCE MAJEURE. Provided the delayed party uses reasonable
     --------------------------
efforts and all due diligence to effect the required performance, in any case
where either party hereto is required to do any act, delays caused by or
resulting from Act of God, war, civil commotion, fire or other casualty, labor
difficulties, general shortages of labor, materials or equipment, government
regulations or other causes beyond such party's reasonable control (other than
causes related to such party's financial condition) shall not be counted in
determining the time when the performance of such act must be completed, whether
such time be designated by a fixed time, a fixed period of time or a "reasonable
time." The provisions of this Section 26 shall not be applicable with respect to
payment of money, or obligations under Sections 4, 8, 9, 13, 14, and 15.

                                      -22-
<PAGE>

     SECTION 27.0 RECORDING. This Lease shall not be recorded in any registry of

     ----------------------
deeds or other public office, but each party agrees to execute, acknowledge, and
deliver, at the request of the other party, a memorandum of this Lease in
appropriate form for recording, in accordance with Maine statute. Such
memorandum will not set forth the rental or other charges payable by Tenant
under this Lease, and shall expressly state that it is not intended to vary the
terms or conditions of this Lease.

     SECTION 28.0 NOTICES. Whenever by the terms of this Lease notice shall or
     --------------------
be given to either party, such notice shall be in writing and shall be sent by
registered or certified mail, postage prepaid, to the addresses set forth on the
first page of this Lease, or such other address or addresses as either party may
from time to time hereafter designate by written notice to the other.

     SECTION 29.0 SEVERABILITY. If any term or provision of this Lease, or the
     -------------------------
application thereof to any person or circumstance shall to any extent be invalid
or unenforceable for any reason, then the remainder of this Lease, or the
application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each term or provision of this Lease shall be valid and enforced to
the fullest extent permitted by law.

     SECTION 30.0 SUCCESSORS AND ASSIGNS. The conditions, covenants and
     -----------------------------------
agreements in this Lease contained to be kept and performed by the parties
hereto shall be binding upon and inure to the benefit of said respective
parties, their legal representatives, successors and assigns. The term
"Landlord" as used in this Lease means only the owner for the time being of the
land and the buildings of which the Premises are a part, so that in the event of
any sale or transfer of such land and buildings or of this Lease, Landlord shall
be and hereby is entirely released of all covenants and obligations of Landlord
hereunder.

     SECTION 31.0 RIGHT OF FIRST REFUSAL. If Landlord, or any person or entity
     -----------------------------------
succeeding to Landlord's interests, during the Initial Term or any Renewal Term,
elects to sell all or any portion of the Premises, Tenant shall have the right
of first refusal to meet any bona fide offer of sale on the same terms and
conditions of such offer. If Tenant fails to make its offer or make a substitute
offer to Landlord that is substantially equal in value (including any value
attributable to landlord's tax considerations) to the value of any non-cash
offer received by Landlord within 30 days after notice thereof from Landlord,
including the complete terms of the bona fide offer, Landlord may sell the
premises or portion thereof to such offeror in accordance with the terms and
conditions of the offer.

     SECTION 32.0 DISPUTE RESOLUTION. All controversies arising out of this
     -------------------------------
agreement, or concerning the alleged breach hereof, except monetary claims for
rental, shall be submitted to binding arbitration with the American Arbitration
Association (the Association). Notwithstanding the provisions of this paragraph,
either party may seek appropriate injunctive relief for any threatened conduct.
Judgment upon the award rendered may be entered in any court of competent
jurisdiction. The procedure for arbitration shall be in accordance with the

                                      -23-
<PAGE>

Association's then existing rules, except that each party may select one
arbitrator, and the two selected arbitrators shall choose a third arbitrator. If
either party fails to select an arbitrator within ten days after arbitration is
sought, or the two arbitrators fail to select a third arbitrator within 15 days
after arbitration is sought, the Association shall make the selection.

     IN WITNESS WHEREOF, the parties have hereunto set their hands and seals, in
any number of counterparts, the day and year first above written.

WITNESS:                          OLYMPIA EQUITY INVESTORS III, L.P.

                                  By: ERIN MANAGEMENT GROUP II,
                                  a Maine corporation, its sole general partner


/s/William E. Saufley             By: /s/Kevin P. Mahaney
                                      -----------------------------------------
                                           Kevin P. Mahaney
                                           Its President
                                           Hereunto duly authorized

                                                                        LANDLORD

                                  COASTAL BANK

/s/William E. Saufley.            By: /s/Gregory T. Caswell
                                    --------------------------------------------
                                           Gregory T. Caswell
                                           Its President & CEO
                                           Hereunto duly authorized
                                                                          TENANT

LIST OF EXHIBITS:

A: Plan of Site
B: Legal Description of Site
C: Landlord's Work
D: Tenant's Work
E: Free-Standing Signage

LIST OF SCHEDULES:

1.1 Calculation of Rentable Area
2.1 Description of Premises; Appurtenances and rights granted with the Premises
2.2 Specification of parking areas on adjacent property

                                      -24-
<PAGE>

                                                                       EXHIBIT A


Plan of Site

[Diagram]
<PAGE>

                                                                       EXHIBIT B


                           Legal Description of Land
                          Lease between Coastal Bank
                    and Olympia Equity Investors III, L.P.

Certain real property, together with any improvements thereon, located on the
southerly side of Congress Street in the City of Portland, County of Cumberland,
State of Maine, bounded and described as follows:

     Beginning at a point on the southerly sideline of Congress Street at the
     northeasterly corner of Lot #3 as it is delineated on a plan entitled,
     "PLAN OF LAND IN PORTLAND, MAINE FOR CSR ASSOCIATES", dated September 24,
     1973 and recorded in the Cumberland County Registry of Deeds in Plan Book
     104, Page 33 and plan entitled "Amended Subdivision Plan in Portland, Maine
     for CSR Associates" recorded February 12, 1997 in said Registry of Deeds in
     Plan Book 197, Page 32 (the "Subdivision Plan");

     Thence South 23(degrees) 05' 30" West along the I-295 right of way and
     along land now or formerly of CSR Management, Inc. 228.00 feet to a point;

     Thence North 65(degrees) 40' 00" West along said CSR Management, Inc. land
     150.00 feet to a point;

     Thence North 21(degrees) 36' 20" East along said CSR Management, Inc. land
     and across land of the Grantor herein 250.00 feet to a point on the
     southerly sideline of Congress Street;

     Thence South 62(degrees) 07' 20" East along said sideline of Congress
     Street 0.59 feet to a point;

     Thence South 27(degrees) 42' 53" West along said sideline of Congress
     Street 1.46 feet to a point;

     Thence South 58(degrees) 17' 00" East along said sideline of Congress
     Street 157.76 feet to the point of beginning containing 36,452 square feet
     and being delineated on a plan entitled "ALTA/ACSM LAND TITLE SURVEY ON
     CONGRESS STREET & SEWALL STREET PORTLAND, MAINE MADE FOR OLYMPIA EQUITY
     INVESTORS I, L.P.", dated January 24, 1997 by Owen Haskell, Inc. ("the
     Survey").
<PAGE>

     Meaning and intending to convey and hereby conveying Lot #3 as depicted on
     the Subdivision Plan.

     Also granting an easement in common with others, for pedestrian and
     vehicular ingress, egress and passage over and across the following
     described property:

     Commencing at the southeasterly corner of Lot 2 depicted on the Subdivision
     Plan; thence North 17(degrees) 52' 40" East by Lot 2 142 feet, more or
     less, to the southerly side of Congress Street; thence South 62(degrees) 7'
     20" East by the southerly side of Congress Street 50.19 feet, more or less,
     to the northwesterly corner of Lot 3 depicted on the Subdivision Plan;
     thence South 21(degrees) 36' 20" West by said Lot 3 150 feet to a point;
     thence North 49(degrees) 39' 40" West 42.93 feet, more or less, to the
     point of beginning (the "Access Easement").

For Landlord's source of title reference is made to a deed from Olympia Equity
Investors I, L.P. to Olympia Equity Investors III, L.P. dated June 11, 1998
recorded in Book 13907, Page 46 of the Cumberland County Registry of Deeds.

SUBJECT TO all items of record in the Cumberland County Registry of Deeds.

Together with the benefit of the following easements and covenants:

(1)  Access:  A non-exclusive, perpetual easement, for the purpose of vehicular
and pedestrian ingress, egress and access to and from Lot 3 and Congress Street,
over, upon, across and through the area described above as the "Access
Easement." The owner of Lot 3 shall have the right, but not the obligation, to
perform necessary maintenance in the Access Easement area and the right to enter
upon such other portions of land adjoining the Access Easement area as are
necessary for the purpose of maintaining said Access Easement area (subject
however to the rights of the owner of Lot 2 on the Subdivision Plan).

(2)  Parking:  A non-exclusive, perpetual easement, for the purpose of vehicular
parking, over, upon, across and through an area within the Access Easement area
within 15 feet of the westerly line of Lot 3 (subject to the rights of the owner
of Lot 2 on the Subdivision Plan).

(3)  Second Parking Easement:  A non-exclusive, perpetual easement, for purposes
of parking (for not more than twenty (20) cars) over the parking areas on Lot 1
on the Subdivision Plan adjoining and to the south of Lot 3. No buildings,
fences, curbs or other obstructions prohibiting access between Lot 3, the Access
Easement, the Parking Easement, and the Second Parking Easement shall be
constructed without the prior written approval of the owner of Lot 3. The owner
of Lot 1 reserves the right at any time to relocate and reconfigure the Second
Parking Easement provided however that the
<PAGE>

rights of the owner of Lot 3 will continue in effect with respect to such
relocated and reconfigured area and the number of parking spaces available for
the non-exclusive use by the owner of Lot 3 in the location adjacent to Lot 3
shall not be reduced below twenty (20) spaces without the prior written approval
of the owner of Lot 3. The owner of Lot 1 shall be obligated to adequately
maintain the Second Parking Easement.

(4) Secondary Access Easement: A non-exclusive, perpetual easement, for purposes
of vehicular and pedestrian ingress and egress to and from Lot 3 over such
driveway and walkway areas as may exist from time to time within Lot 1, provided
that the owner of Lot 3 agrees not to use the driveways on Lot 1 for heavy truck
traffic except as may be reasonably necessary on a temporary basis for
development of Lot 3 and the owner of Lot 1 will use all reasonable efforts to
cause ingress and egress by vehicles making deliveries to the business operation
on Lot 3 to be made by way of the Access Easement area described above rather
than over the Secondary Access Easement. The owner of Lot 1 shall adequately
maintain the Secondary Access Easement areas and the owner of Lot 3 will have no
right to place signage or do any construction or maintenance in the Secondary
Access Easement. The owner of Lot 1 will have the unrestricted right at any time
and from time to time to relocate and reconfigure all driveways and sidewalks
within Lot 1 provided that the rights of the owner of Lot 3 will continue in
effect with respect to such relocated and reconfigured areas and such relocation
or reconfiguration will not unreasonably interfere with access to and from Lot 3
over Lot 1 to Sewall and Congress Streets.

(5) Surface Drainage: A non-exclusive, perpetual easement for the purpose of
surface draining any and all storm water run-off from Lot 3 and the improvements
which may, from time to time, be constructed, altered, modified and maintained
thereon, over, upon and across Lot 1, and no change of grade elevation or
excavation shall be made on Lot 1 which shall interfere with or obstruct the
drainage from Lot 3.

For Landlord's source of title for items (1) - (5) see a deed from Olympia
Equity Investors I, L.P. dated June 11, 1998 recorded in Book 13907, Page 46 of
the Cumberland County Registry of Deeds.

(6)  Additional Access Easements:  All rights and privileges granted to Olympia
Equity Investors III, L.P as set forth in a Mutual Easement Deed dated October
14, 1999 by and between Olympia Equity Investors I, L.P.; Olympia Equity
Investors II, LLC; Olympia Equity Investors III, L.P. and Joseph F. Dugas,
Trustee of the Merrimack Industrial Trust, said deed being recorded in Book
_____, Page ________ of the Cumberland County Registry of Deeds.
<PAGE>

                                                                       EXHIBIT C

                                LANDLORD'S WORK

Landlord's Work shall consist of:

  (1)  Site improvements (including without limitation, installation of traffic
       signals, construction and wiring of the stone wall suitable for free-
       standing signage shown on Exhibit E, final paving, striping, and
       landscaping) at and surrounding the Site, as set forth in Exhibit A; and

  (2)  Construction of the Building according to the Preliminary Specifications
       set forth in the plans appended hereto from Alliance Construction Co.
       Inc. as amended to the date hereof, wiring and other preparation for
       building signage as provided in the specifications of Neokraft Signs Inc.
       appended hereto, and, as to interior design and finish, plans of
       Theriault/Landmann Associates, as amended to the date hereof, as each may
       be modified in the Final Specifications and by subsequent change orders.

Shared Costs.  Notwithstanding Landlord's responsibility to complete Landlord's
Work, Landlord and Tenant agree to share costs of the following portions of the
construction of the Building as follows:

       (A) Landlord will provide Tenant an allowance of $38,766 with respect to
           carpeting and installation, provided that Tenant shall select
           carpeting with an installed cost of not less than $26 per square
           yard. Costs in excess of the allowance are Tenant's responsibility.
           In the event that the carpeting selected by Tenant shall have an
           installed cost less than $26 per square yard, the savings shall be
           apportioned equally between Landlord and Tenant.

       (B) Landlord will provide Tenant an allowance with respect to the
           interior glazing specified in the final Theriault/Landmann Associates
           plan, with interior glazing costs in excess of that allowance to be
           paid by Tenant. The allowance shall be equal to $15,000, so long as
           the installed cost of the glazing shall be equal to or greater than
           $75,000, but less than $85,000. If the installed cost shall equal or
           exceed $85,000, the allowance shall equal $20,000.

       (C) Landlord will provide Tenant an allowance of $15,000 with respect to
           the ornamental staircase between the first and second floors
           specified in the final Theriault Landmann Associates plan, with costs
           in excess of that allowance to be paid by Tenant. In the event that
           the staircase shall have an installed cost below $27,000, the
           allowance shall be reduced by fifty cents for each dollar that the
           actual cost falls below $27,000.

       (D) With respect to the HVAC systems made part of the Final
           Specifications, Landlord and Tenant have agreed to evenly divide the
           incremental cost of the system over the cost of the system originally
           specified by the contractor, provided that the total incremental cost
           shall not exceed $120,000 unless

                                      C-1
<PAGE>

           mutually agreed by Landlord and Tenant, and therefore, the additional
           contribution of each party shall not exceed $60,000.

       (E) In view of Tenant's cost-saving modifications to the original
           interior design with respect to wall coverings, Landlord shall
           provide a credit to Tenant of $10,458, to be applied to: (a) the
           $2,810 incremental cost associated with the showers contained in the
           final plans, and (b) the remaining $7,648 to Tenant's obligations
           under the foregoing paragraphs.

       (F) In recognition of the incremental costs to be incurred by Tenant for
           holding over at its current facility, Landlord shall provide to
           Tenant an additional credit equal to one month's rent, or $23,133.63,
           toward the shared costs provided in this Exhibit C, which credit
           shall be recognized at settlement of the shared cost items following
           the Commencement Date.

Escrow Account.  On or before the Final Specifications Date, Tenant shall
establish for the benefit of Landlord an escrow account in a federally insured
depository institution, which may at Tenant's election be the Tenant, and shall
make payment into such escrow account in an amount the amount of $79,597,
representing one-half of Tenant's anticipated contributions toward Landlord's
Work.  Any interest on such tax escrow account shall be payable to Tenant.
Landlord shall be entitled to an accounting of the escrow account.  The escrow
agent shall reimburse Landlord, within ten (10) business days of being invoiced
therefor, for Tenant's proportionate share of each of the shared cost items
described in this Exhibit C.  Within ten (10) business days following the
Commencement Date, Landlord shall account to Tenant with respect to all
expenditures made for the shared cost items under this Exhibit C, and within ten
(10) business days following the actual receipt by Tenant of such accounting,
Tenant shall pay to Landlord Tenant's remaining share of such expenses.  In the
event that there remain additional escrow funds at such time, the escrow funds
shall be applied in full or partial satisfaction of Tenant's responsibility for
payment, and any remaining funds shall be repaid to Tenant.

                                      C-2
<PAGE>

Preliminary Sign Requirements
From Neokraft Signs Inc.


"Penthouse" dimensions:  Rooftop mechanicals enclosure must provide adequate
access for installation of sign.  Minimum dimensions of the enclosure should be
9'8" high by 35' long on East and West facing walls; slight narrowing on North
and South facing surfaces as required by design.

Electrical requirements:  Up to three (3) building top signs installed on the
mechanicals penthouse may draw as much as 85 amps (120v) per set.

Other signs' electrical requirements to be specified later.

                                      C-3
<PAGE>

                                                                       EXHIBIT D


                                 TENANT'S WORK

Tenant's Work shall consist of:

     (1)  Installation of rooftop, free-standing and other signage on the
          Building and Site identifying Coastal Bank connecting to structures
          and wiring completed as part of Landlord's Work; and

     (2)  Installation of trade fixtures and equipment, including without
          limitation automated teller machines, high density filing systems and
          security equipment, and principal UL-rated modular bank vault (in
          Landlord-prepared receptacles); and

     (3)  Computer and telephone systems installation and connections; and

     (4)  Connection of alarm devices to wiring installed by Landlord; and

     (5)  Set-up of systems furniture.

                                      D-1
<PAGE>

                                                                       EXHIBIT E

                             FREE-STANDING SIGNAGE

Pursuant to the plans for the Building, Landlord will construct a stone wall for
a free-standing sign near the Congress Street entrance to the site, and provide
the base and wiring for a sign to be attached to the stone wall by Tenant.
Pursuant to this lease, the design for the sign is to be by Tenant, subject to
Landlord and municipal approval.  The following design (detail of stone wall
omitted) is expressly approved by Landlord; and substantial change from this
design is subject to future approval by Landlord, which may not be unreasonably
delayed or withheld.

[DIAGRAM]

                                      E-1
<PAGE>

                                   SUBLEASE
                                   --------

     This Sublease (hereinafter "Lease"), made this 26th day of October, 1999,
is between OLYMPIA EQUITY INVESTORS III, L.P. ("Lessor") and COASTAL BANK
("Lessee").

     WITNESSETH, that the Lessor hereby leases to the Lessee, and the Lessee
hereby leases and takes from the Lessor, the following:

     The non-exclusive right to sixty-five (65) parking spaces, twenty-three
     (23) of said parking spaces being located in the area designated as "Area
     A" on Exhibit A attached hereto and made a part hereof. The remainder of
     the parking spaces being located generally in the area designated as "Area
     B" on Exhibit A attached hereto and made a part hereof (Lessee's collective
     rights in the 65 parking spaces being referred to herein as the "leased
     premises").

This Lease is subject to the following terms and conditions:


                                  ARTICLE ONE
                                  -----------
                                 TERM OF LEASE
                                 -------------

   1.01    The term shall begin on the Commencement Date of a certain lease
between Lessor and Lessee (the "Bank Lease") and continue for a period of ten
(10) years.  Lessee shall also have the option to renew this lease for four
additional terms of five (5) years each.  Lessee may exercise its option to
renew only if it renews the Bank Lease according to its terms.  Renewal shall be
effective automatically upon renewal or extension of the Bank Lease, unless
Lessee provides written notice to Lessor at least 60 days prior to the
conclusion of each lease term.

                                  ARTICLE TWO
                                  -----------
                       EXPENSES, CHARGES AND OBLIGATIONS
                       ---------------------------------

   2.01    Lessor shall be responsible for completion of the parking area in
accordance with Final Specifications under the Bank Lease and conformity with
the requirements of the Site Plan approval, including without limitation
landscaping, final paving and striping. Lessee agrees that it will be
responsible for all expenses associated with maintaining, repairing, and
servicing Area A of the leased premises thereafter. Lessor shall calculate
Lessee's required contribution by multiplying the average monthly expense
associated with maintaining and repairing Area A and associated landscaping by a
fraction; the numerator of which shall be 23 (the number of parking spaces
leased to Lessee), the denominator of which shall be the total number of spaces
in the subject parking lot (currently 277). Lessor shall bill Lessee on an
annual basis for its required contribution. Lessee shall remit payment with 14
days of receipt of such bill.

   2.02    Lessor shall retain the right to reconfigure all driveways, parking
lots, and sidewalks within Area A and Area B, provided that such reconfiguration
does not reduce the number of parking spaces or unreasonably reduce access to
and from the leased premises. Except as set forth herein, Lessee shall continue
to have the rights set forth above with respect to any reconfiguration of the
parking area.

                                       1
<PAGE>

                                 ARTICLE THREE
                                 -------------
                                      USE
                                      ---

   3.01    Lessee shall have the right to use the leased premises for vehicular
parking for employees, customers, and tenants of the Lessee and for no other
purpose. The Parties contemplate that a majority of Lessee's use of the leased
premises will be between the hours of 7:30 am and 5:30 pm Monday through Friday
("normal business hours".) Lessee shall also have the right to place a sign or
signs reading "Parking for Coastal Bank customers, employees and tenants
7:30 am -5:30 pm" in such place or places as may be reasonably necessary to
provide Lessee with the primary use of 50 parking spaces during normal business
hours. The design and location of the signs referred to herein shall be subject
to Lessor's reasonable approval and shall conform to all applicable laws and
regulations .


                                 ARTICLE FOUR
                                 ------------
                 INDEMNIFICATION AND LOSS-LIABILITY OF LESSOR
                 --------------------------------------------

   4.01    Lessee covenants and agrees, at its sole cost and expense, to
indemnify and save harmless and defend Lessor against and from any and all loss
or liability resulting from claims by or on behalf of any person, firm,
corporation or governmental authority, arising from the occupation, use,
possession, conduct or management of or from any work or thing whatsoever done
in or about the leased premises during the lease term, or arising from any act
or negligence of Lessee, or any of Lessee's agents, contractors, servants,
tenants, employees or licensees, or arising from any accident, injury or damage
whatsoever caused to persons, firms or corporations, including any tenant of the
Lessee occurring during the lease term, in or about the leased premises, and
from and against all costs, reasonable counsel fees, expenses and liabilities
incurred in or about any such claim, action or proceeding brought thereon; and
in case any action or proceeding be brought against Lessor by reason of any such
claim, Lessee, upon notice from Lessor, covenants to resist or defend such
action or proceeding by counsel satisfactory to Lessor, unless such action or
proceeding is resisted or defended by counsel for any carrier of public
liability insurance; provided, however, that this indemnification shall not be
applicable to any claims by any person, firms or corporation for injuries or
damages resulting from (a) matters unrelated to covenants of Lessee under the
terms of this Lease and resulting from Lessor's sole negligence; or (b) use of
the leased premises by parties other than tenants, customers and employees of
Lessee.


                                 ARTICLE FIVE
                                 ------------
                                   INSURANCE
                                   ----------

   5.01 General Liability Insurance.  Lessee will general and other liability
        ---------------------------
insurance as will fully protect Lessee and Lessor against any and all damages as
a result of any injury or alleged injury to any person or any property arising
out of activities of Lessee on the leased premises.  Lessee will obtain such
insurance from reputable insurers, acceptable to Lessor and licensed to do
business in the state of Maine.  Such insurance policies shall be written,
naming Lessee and Lessor as the insured, in the amount of $2,000,000 for
personal injury or death and $2,000,000 aggregate per policy year for property
damage.

                                       2
<PAGE>

     Said policy shall contain an endorsement that the policy cannot be
canceled, materially changed or reduced, or not renewed for any reason until the
Insurer has given the Lessor at least ten (10) days' written notice of such
proposed action.

     At five year intervals during the term of this Lease, Lessor may request
Lessee to revise said liability coverage, both as to amounts and type of
coverage, and Lessee will promptly so revise said coverage provided that the
coverage as requested has been considered to be a generally accepted standard in
connection with the operation of parking lots.


                                  ARTICLE SIX
                                  -----------
                             DAMAGES/CONDEMNATION
                             --------------------

     6.01  In the event that casualty partially destroys the Leased Premises or
if all any part of the Leased Premises shall be taken or condemned in eminent
domain proceedings for any public or quasi-public use, Lessee shall have the
option to terminate this lease. Should Lessee elect to continue this lease, the
parking spaces available to Lessee may be reduced as reasonably necessary by
Lessor. Upon any such reduction the portion of maintenance and other expenses
paid by Lessee shall be proportionally reduced as well.

     6.02  Lessor and Lessee each agree that they will cooperate with the other,
to such extent as such other party may reasonably require, in connection with
the prosecution or defense of any action or proceeding arising out of, or for
the collection of any insurance monies that may be due in the event of, any loss
or damage, and that each will execute and deliver to such other party such
instruments as may be required to facilitate the recovery of any insurance
monies, but the costs and expenses of all such action and proceeding shall be
paid by Lessee.

     6.03  If, during the Lease term, the whole or any part of the Leased
Premises shall be taken or condemned in eminent domain proceedings for any
public or quasi-public use, the total award made with respect to the Leased
Premises shall be the sole property of Lessor. At the time of the termination of
this Lease pursuant to this Section, this Lease shall cease and terminate on the
date on which Lessee relinquishes possession of the leased premises due to such
condemnation.


                                 ARTICLE SEVEN
                                 -------------
                            ASSIGNMENT, SUBLETTING
                            -----------------------

     7.01  Lessee shall not assign or sublet this Lease without the express
written consent of Lessor.


                                 ARTICLE EIGHT
                                 -------------
                        EXECUTION OF MEMORANDUM OF LEASE
                        --------------------------------

     8.01  After the execution of this Lease, and at the request of either
party, Lessor and Lessee shall execute a Memorandum of Lease for recording
purposes setting forth only such details therein as shall be necessary to
satisfy local recording requirements.

                                       3
<PAGE>

                                 ARTICLE NINE
                                 ------------
                                    NOTICES
                                    -------

     9.01  All notices, demands and request of either party to the other shall
be in writing and shall be personally served or sent by United States registered
or certified mail, return receipt requested, postage prepaid, to the Lessor at
500 Maine Street, Bangor, Maine 04401 and to the Lessee at P.O. Box 8550,
Portland, Maine 04104. The place for the mailing of such notice may be changed
by either party by said party giving notice in like manner and fashion to the
other party and designating a new address for the mailing of any such notices to
said other party.


                                  ARTICLE TEN
                                  -----------
                                 GOVERNING LAW
                                 -------------

     10.01 This Lease shall be interpreted in accordance with the laws of the
State of Maine.


                                ARTICLE ELEVEN
                                --------------
                      INVALIDITY OF PARTICULAR PROVISION
                      ----------------------------------

     11.01 If any term or provision of this Lease or the application thereof to
any person or circumstances shall to any extent be invalid or unenforceable, the
remainder of this Lease, or the application of such terms or provisions to
persons or circumstances other than those as to which it is invalid or
unenforceable, shall not be affected thereby and each term of the Lease shall be
valid and shall be enforced to the fullest extent permitted by law.


                                ARTICLE TWELVE
                                --------------
                                BINDING EFFECT
                                --------------

     12.01 The terms, conditions, covenants, provisions and agreements herein
contained shall be binding upon, and inure to the benefit of, the parties
hereto, and to their respective successors and assigns.


                               ARTICLE THIRTEEN
                               ----------------
                                QUIET ENJOYMENT
                                ---------------

     13.01 Lessor covenants and warrants that Lessor is seized of and has good
and marketable leasehold title to the leased premises, free and clear of all
liens, easements and encumbrances of any nature, except for such minor defects
and irregularities of title as do not materially or adversely affect the value
of the leased premises or impair Lessee's intended use of the leased premises.
Lessor covenants and warrants that it will defend such title thereto and will
indemnify the Lessee against any damage or expense which Lessee may suffer by
reason of any defect in the title or the description herein of the leased
premises. Lessor further warrants that it has full right and authority to enter
into this Lease and perform all the provisions hereof, and the execution and
delivery of this Lease by Lessor's general partner has been fully authorized and
approved by Lessor.  Lessor further covenants and warrants that if Lessee shall
discharge its obligations hereunder, Lessee, its successors in interest, and its
lessees which are not in default of

                                       4
<PAGE>

their leases, shall have and enjoy during the term hereof the quiet undisturbed
possession and enjoyment of the Premises without hindrance from Lessor, its
assignees, affiliates or any party under Lessor's control.

     13.02 If Lessor shall be in default of its obligations to its own lessor,
Lessee shall be entitled, at its sole discretion, to perform the obligations of
Lessor with respect to its lease, in whole or in part.  In such event, Lessee
shall be entitled to set off any funds it may expend in connection with the
performance of such obligations against any obligation to Lessor, including
without limitation Lessee's obligation to pay rent under the Bank Lease.

     IN WITNESS WHEREOF, the parties have caused this Lease to be executed as of
the day and year first above written by their undersigned duly authorized legal
representatives.

WITNESSES:                   LESSOR:

                             OLYMPIA EQUITY INVESTORS III, L.P.

                             By: ERIN MANAGEMENT GROUP II,
                             a Maine corporation, its sole general partner


/s/William E. Saufley        By: /s/Kevin P. Mahaney
                                 ----------------------------------------------
                                  Kevin P. Mahaney
                                  Its President, hereunto duly authorized


                             LESSEE:

                             COASTAL BANK


/s/William E. Saufley        By: /s/Gregory T. Caswell
                                 ----------------------------------------------
                                  Gregory T. Caswell
                                  Its President, hereunto duly authorized



                                       5
<PAGE>

                                                                    Schedule 1.1

                         CALCULATION OF RENTABLE AREA
                       Prepared By Matthew Baird Design

First Floor:    7,456 square feet
Where "rentable square footage" is determined by the gross area minus (2)
firestairs and the lobby, elevator, and machine room of the secondary core.

Second Floor:  11,301 square feet
Where "rentable square footage" is determined by the gross area minus (2)
firestairs and secondary elevator.

Third floor:   10,354 square feet
Where "rentable square footage" is determined by the gross area minus (2)
firestairs plus second floor secondary elevator and first floor secondary
elevator, machine room and lobby.

Total rentable square footage is 29,211 square feet.
Total gross square footage is 30,103 square feet.

In all cases, gross areas are determined by measuring square footages to the
outside of the exterior walls.  Interior elevators and firestairs are measured
at the centerline of walls.  Elevator and firestair walls that extend to the
perimeter walls are measured from the centerline of the interior wall segments
to the outside face of the exterior wall.
<PAGE>

                                                                    Schedule 2.1

Description of Premises
Appurtenances and Rights Granted with the Premises

In summary of the provisions contained elsewhere in the Lease, and not in
limitation, thereof, the Premises are described generally as follows:

     (1)  The entire Gross Rentable Area (as described in Schedule 1.1) on the
          first and second floors of the Building, calculated to equal 18,757
          square feet, together with any additional Gross Rentable Area that may
          be added from time to time;

     (2)  Rights to use of common areas and facilities with other tenants of the
          Building, including without limitation, fire stairs, lobbies,
          elevators, and machine rooms;

     (3)  Exclusive rights to the drive-through banking facilities;

     (4)  Signage rights as provided in Section 16.0 of the Lease;

     (5)  All pedestrian or vehicular access rights appurtenant to the Site,
          whether currently existing or created hereafter;

     (6)  Exclusive parking rights to 23 parking spaces on site and 29 spaces
          immediately South of the Site, and rights in common with other tenants
          of the Building to 42 other spaces, as generally described in Schedule
          2.2, subject to increase or decrease in the event that the Gross
          Rentable Area subject to this Lease is increased above or decreased
          below 18,757 square feet; and

     (7)  All other rights of Tenant in the Site or the Building arising under
          the Lease or by operation of law.

Trade fixtures and equipment of the Tenant shall not be deemed to become part of
the Premises by virtue of being affixed to the Building or the Site, and Tenant
shall retain all rights of ownership to such fixtures or equipment, subject to
the terms of Section 10.0 of the Lease.

                                   Sch 2.1-1
<PAGE>

                                                                    Schedule 2.2


Specifications of parking areas on adjacent property

[DIAGRAM]