Document:

Unassociated Document

Exhibit 10.11

 

COLUMBIA CORPORATE PARK 100

OFFICE LEASE

BY AND BETWEEN

MERRITT-HF, LLC, LANDLORD AND

HOWARD BANK, TENANT

  

  

 

INDEX

	  	 	  	 	
Page

	  	 	  	 	  
	
1.

	 	
Rental

	 	
2

	  	 	  	 	  
	
2.

	 	
Use

	 	
2

	  	 	  	 	  
	
3.

	 	
Service and Utilities

	 	
3

	  	 	  	 	  
	
4.

	 	
Compliance With Laws

	 	
4

	  	 	  	 	  
	
5.

	 	
Assignment and Subletting

	 	
5

	  	 	  	 	  
	
6.

	 	
Operating Costs

	 	
5

	  	 	  	 	  
	
7.

	 	
Increase in Landlord’s Insurance Rates

	 	
7

	  	 	  	 	  
	
8.

	 	
Insurance - Indemnity

	 	
7

	  	 	  	 	  
	
9.

	 	
Alterations

	 	
9

	  	 	  	 	  
	
10.

	 	
Ownership of Alterations

	 	
9

	  	 	  	 	  
	
11.

	 	
Repairs and Maintenance

	 	
10

	  	 	  	 	  
	
12.

	 	
Default

	 	
11

	  	 	  	 	  
	
13.

	 	
Damage or Destruction

	 	
13

	  	 	  	 	  
	
14.

	 	
Possession

	 	
13

	  	 	  	 	  
	
15.

	 	
Exterior of Premises - Signs

	 	
14

	  	 	  	 	  
	
16.

	 	
Relocation

	 	
14

	  	 	  	 	  
	
17.

	 	
For Rent/Sale Signs

	 	
14

	  	 	  	 	  
	
18.

	 	
Water and Other Damage

	 	
15

	  	 	  	 	  
	
19.

	 	
Right of Entry

	 	
15

	  	 	  	 	  
	
20.

	 	
Termination of Term

	 	
15

	  	 	  	 	  
	
21.

	 	
Condemnation

	 	
15

	  	 	  	 	  
	
22.

	 	
Subordination

	 	
16

	  	 	  	 	  
	
23.

	 	
Landlord’s Right to Perform Tenant’s Covenants

	 	
17

 

  

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24.

	 	
Attornment

	 	
17

	  	 	  	 	  
	
25.

	 	
Non-Waiver of Future Enforcement

	 	
17

	  	 	  	 	  
	
26.

	 	
Personal Property Taxes

	 	
18

	  	 	  	 	  
	
27.

	 	
Recordation of Lease

	 	
18

	  	 	  	 	  
	
28.

	 	
Notices

	 	
18

	  	 	  	 	  
	
29.

	 	
Waiver of Jury Trial

	 	
18

	  	 	  	 	  
	
30.

	 	
Severability

	 	
19

	  	 	  	 	  
	
31.

	 	
Non-Waiver

	 	
19

	  	 	  	 	  
	
32.

	 	
Successors and Assigns

	 	
19

	  	 	  	 	  
	
33.

	 	
Security Deposit

	 	
20

	  	 	  	 	  
	
34.

	 	
Notices to Mortgagee

	 	
20

	  	 	  	 	  
	
35.

	 	
Estoppel Certificate

	 	
21

	  	 	  	 	  
	
36.

	 	
Insolvency

	 	
21

	  	 	  	 	  
	
37.

	 	
Environmental Provisions

	 	
22

	  	 	  	 	  
	
38.

	 	
Rules and Regulations

	 	
23

	  	 	  	 	  
	
39.

	 	
Captions

	 	
23

	  	 	  	 	  
	
40.

	 	
Final and Entire Agreement

	 	
23

	  	 	  	 	  
	
41.

	 	
Tenant Representative

	 	
24

	  	 	  	 	  
	
42.

	 	
Time

	 	
24

	  	 	  	 	  
	
43.

	 	
Charter

	 	
24

	  	 	  	 	  
	
44.

	 	
Renewal Options

	 	
25

	  	 	  	 	  
	
45.

	 	
Landlord’s Work

	 	
25

  

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THIS LEASE, made this 4th day of December, 2003, by and between MERRITT-HF, LLC, hereinafter called “Landlord,” and HOWARD BANK, hereinafter called “Tenant.”

WITNESSETH, that in consideration of the rental hereinafter agreed upon and the performance of all the conditions and covenants hereinafter set forth on the part of the Tenant to be performed, the Landlord does hereby lease unto the said Tenant, and the latter does lease from the former the following premises (hereinafter sometimes called the “Premises”):

Being all those premises attached hereto as Exhibit A and Exhibit B and Exhibit C, said premises being approximately 11,453 rentable square feet.  Upon completion of construction of the premises, Landlord will measure the rentable area of the premises and will certify same to Tenant in writing.  The computation of the rentable square foot area of the premises to be made as herein set forth shall be made by measuring from the primary inside face of the perimeter glass to the centerline of the interior demising partitions the total area of which is multiplied by 1.12 which represents the building core factor.  The Tenant space, being located within the building (hereinafter sometimes called the “Building”) known as “Columbia Corporate Park 100,” situate on a parcel of land (hereinafter sometimes called the “Property”) located in the development known generally as Columbia Corporate Park 100; and situate in 6011 University Boulevard, Ellicott City, Maryland 21043, consisting of the following: (a) Suite 150 (the “Branch Banking Suite” containing approximately 2,847 rentable square feet as shown on Exhibit A attached hereto; (b) Suites 370-390 (the “Corporate Offices Suite” containing approximately 8,606 rentable square feet as shown on Exhibit B; and (c) the area shown on Exhibit C attached hereto (the “Drive-Through Building”), it being understood that for purposes of this Lease the Drive-Through Building square footage will not be included in the overall calculation of the rentable square footage of the leased premises.

for the term of ten (10) years, beginning on the earlier to occur of the following: (i) June 1, 2004; or (ii) the date of substantial completion of Landlord’s Work, as set forth in Exhibits A, B and C, attached hereto; or (iii) the date when Tenant occupies the Premises.  Landlord agrees that it will, at its sole cost and expense, as soon as reasonably possible after the execution of this Lease, commence and pursue to completion the Landlord’s Work set forth on Exhibits A, B and C.  The Premises shall be deemed to be substantially completed on the date when Landlord or its architect notifies Tenant in writing that the Premises are substantially complete, with the exception of minor items which do not interfere with Tenant’s installations and work in order to outfit the Premises for Tenant’s use.

This Lease is made subject to the following additional terms, covenants and conditions:

  

  

 

1.           Rental.

(a)           As used herein, the “First Rental Year” shall mean the period from the commencement of the Lease term to the end of the twelfth (12th) full calendar month thereafter; subsequent Lease years shall commence on the first (1st) day of the next month of the Lease term and on each anniversary thereafter.  The rental rate shall be as follows:

	
Term:

	 	
Annual Rate:

	 	 	
Monthly Rate:

	 	 	
Per Sq. Ft.:

	 
	
Year 1

	 	$	188,162.50	 	 	$	15,680.21	 	 	$	16.43	 
	
Year 2

	 	$	359,957.50	 	 	$	29,996.46	 	 	$	31.43	 
	
Year 3

	 	$	371,410.50	 	 	$	30,950.88	 	 	$	32.43	 
	
Year 4

	 	$	377,137.00	 	 	$	31,428.08	 	 	$	32.93	 
	
Year 5

	 	$	388,590.00	 	 	$	32,382.50	 	 	$	33.93	 
	
Year 6

	 	$	397,179.75	 	 	$	33,098.31	 	 	$	34.68	 
	
Year 7

	 	$	402,906.25	 	 	$	33,575.52	 	 	$	35.18	 
	
Year 8

	 	$	408,632.75	 	 	$	34,052.73	 	 	$	35.68	 
	
Year 9

	 	$	414,359.25	 	 	$	34,529.94	 	 	$	36.18	 
	
Year 10

	 	$	422,949.00	 	 	$	35,245.75	 	 	$	36.93	 

Tenant covenants and agrees to pay all rentals reserved hereunder to Landlord, without notice or demand, in advance, on the first (1st) day of each month during the term of this Lease, without setoff or deduction.  The rental for any fractional monthly periods at the beginning or at the end of each Lease year shall be prorated on a per diem basis and shall be payable on the date upon which the Lease term commences, and on the first (1st) day of the last partial month of the Lease term, respectively.  Tenant covenants and agrees that it will not prepay any rent more than one (1) month in advance without Landlord’s prior written consent.

(b)           All rentals shall be paid to MERRITT-HF, LLC, c/o Merritt, 2066 Lord Baltimore Drive, Baltimore, MD 21244, or at such other place or to such appointee of the Landlord as the Landlord may from time to time designate in writing.

(c)           Tenant covenants and agrees to pay the rental herein reserved and each installment thereof promptly when and as due, without setoff or deduction whatsoever.

2.           Use.

(a)           Tenant covenants and agrees to use and occupy the Premises solely for the following purposes: GENERAL OFFICE/RETAIL/BANK USE, including but not limited to, any activity permitted for a Maryland-Chartered Commercial Bank.  Tenant agrees to comply with all applicable zoning and other laws and regulations, and to provide and install at its own expense any additional equipment or alterations required to comply with all such laws and regulations as required from time to time.  Tenant further agrees not to make, or cause or permit to be made, any use of the Premises which shall constitute a nuisance or shall interfere with the rights of other tenants in the Building to quietly enjoy, use and occupy the Premises leased by them and the common areas of the Building.  Tenant will not permit, allow or cause any public or private auction sales or sheriffs’ or constables’ sales to be conducted on or from the Premises.

  

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(b)           Tenant shall in no event exceed a maximum premises population of four (4) persons per one thousand (1,000) square feet of Total Rentable Area.

3.           Service and Utilities.

(a)           Provided that Tenant is not in default hereunder, Landlord agrees to furnish to the Premises, hot and cold water, and electricity for normal desktop office equipment and normal copying equipment, and lighting, heating, ventilation and air conditioning (“HVAC”) as required in Landlord’s judgment for the comfortable use and occupancy of the Premises.  Subject to the limitations set forth below, such utilities shall be made available without additional charge between the hours of 8:00 a.m. to 6:00 p.m., Monday through Thursday, 8:00 a.m. to 10:00 p.m. on Friday, and 8:00 a.m. to 12:00 noon on Saturday, except for legal holidays.  If Tenant desires HVAC at any other time, Landlord shall provide and shall bill Tenant for the same at Landlord’s standard charges therefore (as established by Landlord from time to time) and Tenant shall pay Landlord’s charges therefor at the same time and in the same manner as is provided for the payment of minimum rental hereunder.  Landlord shall also maintain and keep lighted the common stairs, common entries and restrooms in the Building.  Landlord shall not be in default hereunder or be liable for any damages directly or indirectly resulting from, nor shall the rent be abated by reason of (i) the installation, use or interruption of use of any equipment in connection with the furnishing of any of the services to be furnished by Landlord as set forth in this Lease; (ii) failure to furnish or delay in furnishing any such services where such failure or delay is caused by accident or any condition or event beyond the reasonable control of Landlord, or by the making of necessary repairs or improvements to the Premises of the Building; or (iii) the limitation, curtailment or rationing of, or restrictions on, use of water, electricity, gas or any other form of energy serving the Premises or Building.  Landlord shall not be liable under any circumstances for a loss of or injury to property or business, however, occurring, through or in connection with or incidental to, failure to furnish any such services.  Tenant shall not use heat-generating machines or equipment in the Premises which affect the temperature otherwise maintained by the HVAC system without the prior written consent of Landlord, and if such equipment is used, Landlord reserves the tight to install supplementary air conditioning units in the Premises and the cost thereof, including the cost of installation, operation and maintenance thereof, shall be paid by Tenant to Landlord upon demand by Landlord.

  

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(b)           Tenant shall not, without the written consent of Landlord, use any apparatus or device in the Premises, including, without limitation, electronic data processing machines, punch card machines or machines using in excess of 120 volts, which consumes more electricity than is usually furnished or supplied for the use of Premises as general office space, as may be reasonably determined by Landlord.  Tenant shall not connect any apparatus with electric current except through existing electrical outlets in the Premises.  Tenant shall not consume water or electric current in excess of that usually furnished or supplied for the use of Premises as general office space (as determined by Landlord) without first procuring the written consent of Landlord, which Landlord may refuse, and in the event of consent, Landlord may have installed a water meter or electrical current meter in the Premises to measure the amount of water or electric current consumed within any portion of the Branch Banking Suite or the Corporate Office Suite, in which event Tenant shall reimburse Landlord for all such charges as metered by the separate meter(s) and in such case, Tenant’s liability under Section 6 hereof for its proportionate share of the separately metered utility shall be equitably reduced so that Tenant will not be charged twice for any such separately metered utility charges.  Electric for the Drive-Through Building shall be sub-metered and Tenant shall reimburse Landlord for all such sub-metered charges as hereinafter set forth.  The cost of any such sub-meter (other than that of its installation for the Drive-Thru Building), and the cost of maintenance and repair of such sub-meter, shall be paid for by Tenant and Tenant agrees to pay to Landlord promptly upon demand for all such electric consumed as shown by said sub-meter, at the rates charged for such services by the local public utility, plus any additional expense incurred in keeping account of the electric so consumed.

(c)           Nothing contained in this Section shall restrict Landlord’s right to require at any time separate metering of utilities furnished to the Premises.  In the event utilities are separately metered, Tenant shall pay promptly upon demand for all utilities consumed at utility rates charged by the local public utility, plus any additional expense incurred by Landlord in keeping account of the utilities so consumed.  Tenant shall be responsible for the maintenance and repair of any such meters at its sole cost.

(d)           Landlord shall furnish elevator service, lighting replacement for building standard lights, restroom supplies, exterior window washing and janitorial services in a manner than such services are customarily furnished to comparable office buildings in the area.

4.           Compliance With Laws.

Tenant covenants and agrees that it will, at its own expense, observe, comply with and execute all laws, orders, rules, requirements, and regulations of any and all governmental departments, bodies, bureaus, agencies and officers, and all rules, directions, requirements, and recommendations of the local board of fire underwriters and the fire insurance rating organizations having jurisdiction over the area in which the Premises are situated, or other bodies or agencies now or hereafter exercising similar functions in the area in which the Premises are situated, in any way pertaining to the Premises or the use and occupancy thereof.  In the event Tenant shall fail or neglect to comply with any of the aforesaid laws, orders, rules, requirements, or recommendations, Landlord or its agents, after reasonable prior notice to Tenant (except in case of emergency when no such prior notice is feasible), may enter the Premises and take all such actions and do all such work in or to the Premises as may be necessary in order to cause compliance with such laws, orders, rules, requirements or recommendations, and Tenant covenants and agrees to reimburse Landlord promptly upon demand for the expense incurred by Landlord in taking such action and performing such work.

  

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5.           Assignment and Subletting.

(a)           Tenant covenants and agrees not to assign this Lease, in whole or part, nor sublet the Premises, or any part or portion thereof, nor grant any license or concession for all or any part thereof, without the prior written consent of the Landlord in each instance first had and obtained, which consent shall not be unreasonably withheld with respect to a sublease by Tenant of not more than 2,000 rentable square feet within the Corporate Office Suite Landlord may in its. sole discretion deny any request for an assignment or sublease of all or any portion of the Premises except with respect to the aforesaid sublease of not more than 2,000 rentable square feet in the Corporate Office Suite.  If any such assignment or subletting is permitted, Tenant shall not be relieved from any liability whatsoever under this Lease.  In the event that the amount of the rent or other consideration to be paid to the Tenant by any assignee or sublessee is greater than the rent required to be paid by the Tenant to the Landlord pursuant to this Lease, Tenant shall pay to Landlord any such excess as is received by Tenant from such assignee or sublessee.  Any consent by Landlord to an assignment or subletting of this Lease shall not constitute a waiver of the necessity of such consent as to any subsequent assignment or subletting.  An assignment for the benefit of Tenant’s creditors or otherwise by operation of law shall not be effective to transfer or assign Tenant’s interest under this Lease unless Landlord shall have first consented thereto in writing.

(b)           In the event Tenant desires to assign this Lease or to sublease any portion of the Branch Banking Suite or the Drive-Through Building, or more than fifty percent (50%) of the Corporate Offices Suites, Landlord shall have the right and option to terminate this Lease, which right or option shall be exercisable by written notice from Landlord to Tenant within thirty (30) days from the date Tenant gives Landlord written notice of its desire to assign or sublease.

6.           Operating Costs.

(a)           “Operating Costs” are the costs of managing, operating, maintaining, repairing, redecorating, refurbishing and insuring the Building and all common areas and facilities within the Property (including, but not limited to, elevators, stairwells, loading areas, parking areas, pavements and walkways, landscaping, gardening, storm drainage, and other utility systems); the cost of utilities for such common areas and facilities; fire protection and security services, if any; traffic control equipment; repairs; parking lot striping; lighting; sanitary control; removal of snow, trash, rubbish, garbage and other refuse; depreciation on or rentals of machinery and equipment used in such maintenance; the cost of personnel to implement such services; all insurance of whatsoever nature kept, or caused to be kept, by Landlord out of or in connection with the ownership of the Building and common areas, including, but not limited to, insurance insuring the same against loss or damage by, or abatement of rental income resulting from, fire and other such hazards, casualties, and contingencies, and liability and indemnity insurance; plus Landlord’s actual administrative and overhead costs in connection therewith.  Such costs shall not include the cost of any capital improvements to the Building as determined under generally accepted accounting principles or work which Landlord performs specifically for or at the expense of any tenant of the Building.  “Operating Costs” shall also include all taxes (as hereinafter defined) assessed against the Property and Building, whether as a result of an increase in the tax rate, or the levy, assessment or imposition of any tax on real estate as such not now levied, assessed or imposed.  The foregoing shall apply to increases in real estate taxes assessed against the land or Building generally, and not resulting from improvements placed thereon by Tenant.  In the event of any increases in real estate taxes resulting from improvements, alterations or additions made by Tenant, Tenant shall pay the entire amount of said increase.  “Taxes” as used herein shall include, but not by way of limitation, all paving taxes, special paving taxes, Metropolitan District Charges, and any and all other benefits or assessments which may be levied on the Property or the Building, but shall not include any income tax on the income or rent payable hereunder.  “Taxes” as used herein shall also include all legal fees and costs incurred by Landlord in contesting any proposed tax assessment increase or obtaining any reduction in assessment, provided that any such fees and costs shall only be included in Operating Costs if, as the result of such contest, Tenant receives the benefit of a reduction in its pro rata share of its Tax liability hereunder.  If Landlord receives any refund of Taxes as a result of any such contest, Tenant shall be entitled to a credit equal to its proportionate share thereof.

  

5

 

(b)           If, during any annual period of the term, Operating Costs exceed those costs incurred during the calendar year 2004, Tenant shall pay Landlord, as additional rent, its proportionate share thereof, which shall be the same proportion which the total rentable area of the Premises (i.e., the Branch Banking Suite and the Corporate Office Suite) bears to the total rentable area of the Building.  One hundred percent (100%) of all Operating Costs with respect to the Drive-Through Building shall be paid by Tenant, including electricity which will be sub-metered, insurance premiums and other utilities.  In the event a separate tax bill is provided by Howard County for the Drive-Through Building, Tenant’s liability for taxes with respect to the Drive-Through Building shall be determined by the assessor’s work notes or other reliable means as determined by the Landlord.  Landlord shall not be required to furnish any services for the Drive-Through Building, and without limiting the generality of the foregoing, Tenant shall be responsible for all janitorial services in connection therewith.

(c)           Landlord shall notify Tenant from time to time of the amount which Landlord estimates will be the amount payable by Tenant in accordance with paragraph (b), above, and Tenant shall pay such amounts to Landlord in equal monthly installments, in advance, on the first day of each month, simultaneously with payments of the rent reserved pursuant to Section 1 hereof. Within a reasonable period of time following the end of each annual period of the term, Landlord shall submit to Tenant a statement showing the actual amounts incurred by Landlord as set forth in paragraph (b), the amount theretofore paid by Tenant, and the amount of the resulting balance due thereon, or overpayment thereof, as the case may be.  In the event any balance may be due by Tenant, Tenant shall pay said balance within five (5) days from the date of such statement. In the event Tenant has made any overpayment, such overpayment shall be credited by Landlord against the next installment or installments of rent which are due and payable hereunder, or if the term of this Lease has expired, such overpayment shall be refunded by Landlord to Tenant, without interest, within five (5) days after the date of such statement.  Each such statement submitted by Landlord shall be final and conclusive between the parties hereto as to the matters therein set forth, if no objection is raised with respect thereto within fifteen (15) days after submission of each such statement.

  

6

 

7.           Increase in Landlord’s Insurance Rates.

Tenant will not do, or suffer to be done, anything in or about the Premises, or keep or suffer to be kept, anything in or about the Premises which will contravene or affect any policy of insurance against loss by fire or other hazards, including, but not limited to, public liability, now existing or which the Landlord may hereafter place thereon, or which will prevent the Landlord from procuring such policies in companies acceptable to Landlord at standard rates.  Notwithstanding the foregoing, it is understood that nothing contained in the preceding sentence shall prohibit or limit Tenant’s ability to operate as a commercial bank.  Tenant will, at Tenant’s sole expense, but only to the extent it does not interfere with Tenant’s operation as a commercial bank, take all such actions and make any installations or alterations as may be necessary to obtain the greatest possible reduction in the insurance rates for the Premises and the Building caused by the occupancy of Tenant, the nature of the business carried on by Tenant in the Premises, or otherwise resulting from any act of Tenant, its agents, servants, employees or customers, or anything done or suffered to be done by Tenant, its agents, servants, employees or customers, or anything done or suffered to be done by Tenants, its agents, servants, employees or customers.

8.           Insurance - Indemnity.

(a)           Tenant covenants and agrees that from and after the date of delivery of the Premises from Landlord to Tenant, Tenant will carry and maintain, at its sole cost and expense and in the amounts specified and in the form hereinafter provided, the following types of insurance:

(i)          Public Liability and Property Damage. General Public Liability Insurance covering the Premises and Tenant’s use thereof against claims for personal injury or death and property damage occurring upon, in or about the Premises, such insurance to afford protection to the limit of not less than $2,000,000 arising out of any one occurrence, and against property damage to afford protection to the limit of not less than $2,000,000; or such insurance may be for a combined single limit of $2,000,000 per occurrence.  The insurance coverage required under this Section 8(a)(i) shall, in addition, extend to any liability of Tenant arising out of Tenant’s indemnities hereinafter provided, as well as Independent Contractors’ Liability, Products/Completed Operations Liability, Personal Injury Liability and Contractual Liability.

(ii)          Boilers.  If Tenant’s Premises shall contain a boiler or other pressure vessel, Tenant shall carry Boiler and Machinery Insurance with a direct damage limit not less than the full value of the Building.  Such insurance shall be written on a “repair and replacement” (i.e., replacement cost) basis.

(iii)          Tenant Improvements and Property.  Insurance covering all leasehold improvements and other improvements installed by Tenant upon the Premises, trade fixtures and personal property from time to time in, on or upon the Premises and any alterations, improvements, additions or changes made by Tenant thereto in an amount not less than one hundred percent (100%) of their full replacement cost from time to time during the Lease term, providing protection against perils included within the standard Maryland form of fire and extended coverage insurance policy, together with insurance against sprinkler leakage or other sprinkler damage, vandalism and malicious mischief.  Any policy proceeds from such insurance, so long as this Lease shall remain in effect, shall be held in trust by Tenant’s insurance company first for the repair, reconstruction, restoration or replacement of the property damaged or destroyed.

  

7

 

(iv)          Plate Glass.  Plate glass insurance covering all plate glass in the Premises.  Tenant shall be and remain liable for the repair and restoration of all such plate glass.

Tenant further covenants and agrees to carry and maintain, at all times during the term of this Lease, the aforegoing types of insurance (and any other types of insurance) in amounts at least equal to the minimum amounts of such insurance coverages commonly required of Tenants in comparable office buildings in the are&

(b)           All policies of insurance to be provided by Tenant shall be issued in form acceptable to Landlord by insurance companies with general policyholder’s rating of not less than A and a financial rating of AAA as rated in the most current available “Best’s” Insurance Reports, and qualified to do business in Maryland.  Each such policy shall be issued in the names of Landlord and Tenant.  Said policies shall be for the mutual and joint benefit and protection of each of said parties and executed copies of each such policy of insurance or a certificate thereof shall be delivered to Landlord within ten (10) days after delivery of possession of the Premises to Tenant and thereafter at least fifteen (15) days prior to the expiration of each such policy.  As often as any such policy shall expire or terminate, renewal or additional policies shall be procured and maintained by Tenant in like manner and to like extent.  All such policies of insurance shall contain a provision that the company writing said policy will give to Landlord at least thirty (30) days’ notice in writing in advance of any cancellations, or lapse, or the effective date of any reduction in the amounts of insurance.  In the event Tenant shall fail to promptly furnish any insurance herein required, Landlord may affect the same for a period not exceeding one (1) year and Tenant shall promptly reimburse Landlord upon demand, as additional rent, the premium so paid by Landlord.  If, upon Tenant’s failure, rather than purchase separate insurance coverage, Landlord chooses to include Tenant’s coverage under Landlord’s insurance policies, then Tenant shall promptly reimburse Landlord upon demand, as additional rent, the greater of the increase in Landlord’s premium resulting therefrom or One Thousand Dollars ($1,000.00).  All such public liability, property damage and other casualty policies shall be written as primary policies which do not contribute to and are not in excess of coverage which Landlord may carry.  All such public liability and property damage policies shall contain a provision that Landlord shall nevertheless be entitled to recover under said policies for any loss occasioned to it, its servants, agents and employees by reason of negligence of Tenant or any other named assured.  Any insurance provided for may be affected by a policy or policies of blanket insurance, covering additional items or locations; provided, however that (i) Landlord shall be named as an additional insured thereunder as its interests may appear; (ii) the coverage afforded Landlord will not :be reduced or diminished by reason of the use of such blanket policy of insurance; (iii) any such policy or policies (except any covering the risks referred to in paragraph (a)(i) above), shall specify therein (or Tenant shall furnish Landlord with a written statement from the insurers under such policy specifying) the amount of the total insurance allocated to the “Tenant Improvements and Property” more specifically detailed in paragraph (iii), above; and (iv) the requirements set forth herein are otherwise satisfied.  Any insurance policies herein required to be procured by Tenants shall contain an express waiver of any right of subrogation by the insurance company against the Landlord, unless Tenant’s insurer charges a premium for such waiver of subrogation in excess of the standard premium which would have been charged if no such waiver were included.  If at any time Tenant does not obtain the waiver because of the increased premium, Tenant shall notify Landlord in writing of its inability to obtain the waiver because of such increased premium charge.

  

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(c)           Tenant shall, and does hereby, indemnify and hold harmless Landlord and any other parties in interest set forth in paragraph (b), above, from and against any and all liabilities, fines, claims, damages and actions, costs and expenses of any kind or nature (including attorneys’ fees) and of anyone whatsoever (i) relating to or arising from the use and occupancy of the Premises; (ii) due to or arising out of any mechanic’s lien filed against the Premises, the Building, or any part thereof, for labor performed or for materials furnished or claimed to be furnished to Tenant at Tenant’s request (such labor and materials shall not include the labor and materials to be performed by Landlord in accordance with Exhibit A, B and C), or (iii) due to or arising out of any breach, violation or nonperformance of any covenant, condition or agreement in this Lease set forth and contained on the part of Tenant to be fulfilled, kept, observed or performed, unless such damage or injury shall be occasioned by the gross negligence or willful act or omission of the Landlord, in which event, Landlord shall indemnify and hold harmless Tenant to the extent of such negligence or willful act or omission.  Notwithstanding the foregoing, Tenant shall at all times remain liable for, and indemnify and hold harmless Landlord as aforesaid against, any damage or injury arising from perils against which Tenant is required by this Lease to insure, regardless of the negligence or willful acts or omissions of others.

9.           Alterations.

Tenant shall not make any alterations to the Premises, or any part thereof, without prior written consent of Landlord in each instance first had and obtained.  If Tenant shall desire to make such alterations, plans for the same shall first be submitted to and approved by Landlord, and all work and installations shall be performed by Tenant at its own expense in accordance with approved plans.  Tenant agrees that all such work shall be done in a good and workmanlike manner, that the structural integrity of the Building shall not be impaired, and that no liens shall attach to the Premises by reason thereof.  Tenant agrees to obtain, at Tenant’s expense, all permits required for such alterations.

10.           Ownership of Alterations.

In the event Landlord consents to the making of any alterations to the Premises by Tenant in accordance with Section 9 hereof, Landlord shall also advise Tenant in writing at the time of such written consent, if Tenant requests Landlord to do so, whether or not all or part of any such alteration shall remain on the Premises after the termination of this Lease.  If Landlord requires that the alteration to be made by Tenant be removed at the termination or expiration of the Lease term, Tenant shall do so at its own cost without damage to the Building.  Upon election by Landlord, that any such alterations shall remain on the Premises after the expiration or termination of the Lease term, any such alterations, improvements, betterments or mechanical equipment, including but not limited to, heating and air conditioning systems, shall become the property of Landlord as soon as they are affixed to the Premises, and all right, title and interest thereof of Tenant shall immediately cease, unless otherwise agreed to in writing by Landlord.  Tenant shall promptly pay any franchise, minor privilege or other tax or assessment resulting directly or indirectly from any alterations or improvements made by Tenant to the Premises.  Tenant shall repair promptly, at its own expense, any damage to the Premises or Building caused by bringing into the Premises any property for Tenant’s use, or by the installation of removal of such property, regardless of fault or by whom such damage shall be caused.

  

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11.           Repairs and Maintenance.

(a)           Except as expressly provided in Exhibit A, B and C, Landlord shall be under no liability, nor have any obligation to do any work or make any repairs in or to the Premises, and any work which may be necessary to outfit the Premises for Tenant’s occupancy or for the operation of Tenant’s business therein is the sole responsibility of Tenant and shall be performed by Tenant at its own cost and expense.  Tenant acknowledges that it has fully inspected the Premises prior to the execution of this Lease, and Tenant further acknowledges that Landlord has made no warranties or representations with respect to the condition or state of repairs of the Premises.  Landlord represents and warrants that, upon the commencement of the Lease term, the Premises will be delivered to Tenant in compliance with all Environmental Legal Requirements as set forth in Section 37 hereof.

(b)           Tenant, at Tenant’s sole expense, shall except for services furnished by Landlord pursuant to Section 3 hereof, maintain the Premises in good order, condition, and repair, including the interior surfaces of the ceilings, walls and floors (excluding structural portions thereof), all doors, all interior windows, all plumbing, pipes and fixtures, electrical wiring, switches and fixtures, building standard furnishings and special items and equipment installed by or at the expense of Tenant.

(c)           Tenant shall be responsible for all repairs and alterations in and to the Premises and Building and the facilities and systems thereof, the need for which arises out of (i) Tenant’s use or occupancy of the Premises; (ii) the installation, removal, use or operation of Tenant’s property in the Premises; (iii) the moving of Tenant’s property into or out of the Building; or (iv) any act, omission, misuse or negligence of Tenants, its agents, contractors, employees or invitees.

(d)           If Tenant fails to maintain the Premises in good order, condition and repair, Landlord may give Tenant notice to do such acts as are reasonably required to so maintain the Premises.  If Tenant fails to promptly commence such work and diligently prosecute it to completion, then Landlord shall have the right to do such acts and expend such funds at the expense of Tenant as are reasonably required to perform such work.  Any amount so expended by Landlord shall be paid by Tenant promptly after demand, with interest from the date of such work, at a rate equal to four percentage points (4%) above the prime commercial rate of interest then being charged by Bank of America.  Landlord shall have no liability to Tenant for any damage, inconvenience, or interference with the use of the Premises by Tenant as a result of performing any such work.

  

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(e)           Tenant shall not place a load upon any floor of the Premises which exceeds the load per square foot which such floor was designed to carry, as determined by Landlord’s structural engineer.  Landlord reserves the right to consult with its structural engineer if necessary, in Landlord’s opinion, to resolve any questions concerning this matter, in which event the determination of the engineer shall be conclusive and the cost of any such determination shall be paid for by Tenant upon demand.  Tenant shall not install business machines or mechanical equipment which cause noise or vibration to such a degree as to be reasonably objectionable to Landlord or other Building tenants.  Landlord acknowledges that Tenant will be placing a modular vault in the Branch Banking Suite.

(f)           Except as otherwise expressly provided in this Lease, Landlord shall have no liability to Tenant nor shall Tenant’s obligations under this Lease be reduced or abated in any manner whatsoever by reason of any inconvenience, annoyance, interruption or injury to business arising from Landlord’s making any repairs or changes which Landlord is required or permitted by this Lease or by any other tenant’s lease or required by law to make in or to any portion of the Building or the Premises.  Landlord shall, nevertheless, use reasonable efforts to minimize any interference with Tenant’s business in the Premises.

(g)           Tenant shall give Landlord prompt notice of any damage to or defective condition in any part or appurtenance of the Building’s mechanical, electrical, plumbing, HVAC or other systems serving, located in, or passing through the Premises.

(h)           Upon the expiration or earlier termination of this Lease, Tenant shall return the Premises to Landlord clean and in the same condition as on the date Tenant took possession, except for normal wear and tear.  Any damage to the Premises, including any structural damage, resulting from Tenant’s use or from the removal of Tenant’s fixtures, furnishings and equipment shall be repaired by Tenant at Tenant’s expense.  Landlord shall bill Tenant, as promptly as is practicable, for the costs of any cleanup and/or repairs to the Premises necessitated by Tenant’s use and occupancy thereof (normal wear and tear excepted) and such costs shall constitute additional rental due and payable hereunder notwithstanding any expiration or termination of this Lease.

12.           Default.

(a)           Any of the following events shall constitute a default by Tenant:

(i)           If the rent (basic or additional) shall be in arrears, in whole or in part; or

(ii)          If Tenant shall have failed to perform or comply with any other term, condition, or covenant of this Lease on its part to be performed or complied with, for a period of ten (10) days after notice of such failure from Landlord; or

(iii)         If the Premises are vacant, unoccupied or deserted for a period of fifteen (15) days or more at any time during the term of this Lease; or

(iv)         If Tenant becomes insolvent or makes an assignment for the benefit of its creditors or if a receiver or conservator is appointed for Tenant; or

  

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(v)           If Tenant’s leasehold interest under this Lease is sold under execution, attachment or decree of court to satisfy any debt of Tenant, or if any lien (including a mechanic’s lien) is filed against Tenant’s leasehold interest and is not discharged within ten (10) days thereafter.

(b)           In the event of default as defined in paragraph (a) hereof, Landlord, in addition to any and all legal and equitable remedies it may have, shall have the following remedies:

(i)           To distrain for any rent or additional rent in default; and

(ii)           At any time after default, without notice, to declare this Lease terminated and enter the Premises with or without legal process; and in such event Landlord shall have the benefit of all provisions of law now or hereafter in force respecting the speedy recovery of possession from Tenant’s holding over or proceedings in forcible entry and detainer, and Tenant waives any and all provisions for notice under such laws.

Notwithstanding such reentry and/or termination, Tenant shall immediately be liable to Landlord for the sum of the following: (a) all rent and additional rent then in arrears, without apportionment to the termination date; (b) all other liabilities of Tenant and damages sustained by Landlord as a result of Tenant’s default, including, but not limited to, the reasonable costs of reletting the Premises and any broker’s commissions payable as a result thereof; (c) all of Landlord’s costs and expenses (including reasonable court fees) in connection with such default and recovery of possession; (d) the difference between the rent reserved under this Lease for the balance of the term and the fair rental value of the Premises for the balance of the term to be determined as of the date of reentry; or at Landlord’s option in lieu thereof, Tenant shall pay the amount of the rent and additional rent reserved under this Lease at the times herein stipulated for payment of rent and additional rent for the balance of the term, less any amount received by Landlord during such period from others to whom the Premises may be rented on such terms and conditions and at such rentals as Landlord, in its sole discretion, shall deem proper; and (e) any other damages recoverable by law.  In the event Landlord brings any action against Tenant to enforce compliance by Tenant with any covenant or condition of this Lease, including the covenant to pay rent, and it is judicially determined that Tenant has defaulted in performing or complying with any such covenant or condition, then and in such event, Tenant shall pay to Landlord all costs and expenses incurred by Landlord in bringing and prosecuting such action against Tenant, including Landlord’s attorney’s fees.

(c)           In the event Tenant fails to pay Landlord any rental payment or other charge due hereunder on the date due, Tenant shall pay a late charge equal to fifteen percent (15%) of the rental payment or other such charge, which late charge shall be collectible as additional rent and shall be payable by Tenant to Landlord within five (5) days after written notice from Landlord to Tenant assessing the same.  In addition, any such rental payment or other charge which is delinquent for five (5) days or more, shall bear interest from the date on which same was due at a rate equal to four percentage points (4%) above the prime rate of interest then being charged by NationsBank.

  

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(d)           In the event this Lease is terminated due to Tenant’s default, Landlord agrees to exercise reasonable commercial efforts to relet the Premises.

13.           Damage or Destruction.

(a)           If, during the Lease term, the Premises are damaged by fire or other casualty, but not to the extent that Tenant is prevented from carrying on business in the Premises, Landlord shall promptly cause such damage to be repaired; if such damage renders a substantial portion of the Premises untenantable, the rent reserved hereunder shall be reduced during the period of its untenantability proportionately to the amount by which the area so rendered untenantable bears to the entire gross rentable area of the Premises, and such reduction shall be apportioned from the date of the casualty to the date when the Premise are rendered fully tenantable.  Notwithstanding the fore-going, in the event such fire or other casualty damages or destroys any of Tenant’s leasehold improvements, alterations, betterments, fixtures or equipment, Tenant shall cause the same, to be repaired or restored at Tenant’s sole cost and expense and Landlord shall have no liability for the restoration or repair thereof.

(b)           If, during the Lease term, the Premises or a substantial portion of the Building are rendered wholly untenantable as the result of fire, the elements, unavoidable accident or other casualty, Landlord shall have the option either to restore the Premises to their condition immediately prior to the casualty or to terminate this Lease, such option shall be exercised by Landlord by written notice to Tenant within thirty (30) days after the fire, accident or casualty.  If Landlord elects to restore the Premises, such restoration shall be completed as promptly as reasonably possible and the rent reserved hereunder shall abate until the Premises are again rendered tenantable.

14.           Possession.

In case this Lease provides for a specifically designated commencement date, and if possession of the Premises, in whole or in part, cannot be given to Tenant on or before such commencement date, Landlord agrees to abate the rent proportionately until possession is given to Tenant, and Tenant agrees to accept such pro rata abatement as liquidated damages for the failure to obtain possession on the commencement date herein specified.  The parties hereto covenant and agree that if the term of this Lease commences on a date other than the date herein specified, they will, upon the request of either of them, execute an agreement in recordable form setting forth the new commencement and termination dates of the Lease term.  Under no circumstances shall Landlord be under any liability for failure to deliver possession of the Premises to Tenant on the date herein specified.

  

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15.           Exterior of Premises - Signs.

(a)           Tenant covenants and agrees that it will not place or permit any window display, sign, billboard, marquee, lights, awning, poles, placard, advertising matter, or other thing of any kind, in or about the exterior of the Premises or the Building (including without limitation any displays on or in any motor vehicles used by Tenant, its employees, agents and servants), nor paint or make any change in, to or on the exterior of said Premises to change the uniform architecture, paint or appearance of the Building, without in each such instance obtaining the prior written consent of Landlord and, if applicable, of any owners’ association or similar entity which may govern the use of Columbia Corporate Park 100.  In the event such consent is given, Tenant agrees to pay any minor privilege or other tax arising as a result of any such installation immediately when due.  Tenant shall obtain, at Tenant’s expense, all permits required for such installation.  Tenant further agrees to maintain any sign, billboard, marquee, awning, decoration, placard, or advertising matter or other thing of any kind as’ may be approved by Landlord in good condition and repair at all times.

(b)           Tenant further covenants and agrees not to pile or place anything on the sidewalk, parking lot or other exterior portion of the Premises or Building in the front, rear or sides of the Building, not block any sidewalk, parking lot or other exterior portion of the Premises or Building, not do anything that directly or indirectly will interfere with any of the rights of ingress or egress or of light from any other tenant, not do anything which will, in any way, change the uniform and general design of the Building or the Property.

(c)           Notwithstanding any other provisions hereof, Tenant shall pay all costs of any signage installed by or for Tenant.

(d)           Tenant will be provided the right to affix one (1) exterior sign to the building on the pre-cast panel directly above the main entrance to the Branch Bank Suite on the 1 g floor in a style size acceptable to Landlord.  Tenant will also be provided the right to affix one (1) sign to the detached Drive-Through Building in a style and size acceptable to Landlord.

(e)           In the event the total rentable area of the Premises hereby leased exceeds the total rentable area leased to any other tenant of the Building, Landlord will permit Tenant to place an exterior sign on the cornice of the Building for the period of time that the total rentable area of the Premises hereby leased exceeds the total rentable area leased to any other tenant of the Building.

(f)           The cost of all signage and the installation and maintenance thereof, as well as the cost of any permits required therefore, shall be paid by Tenant.

16.           Relocation.

Landlord reserves the right at its option to relocate the Corporate Offices Suites, to another area within the Building provided; (i) such new location shall be comparable to the original location of the Corporate Offices Suites being relocated; (ii) Landlord gives Tenant thirty (30) days prior written notice of such relocation; and (iii) Landlord pays the expenses of moving Tenant’s furnishings, fixtures and equipment, including Tenant’s telephone system.

17.           For Rent/Sale Signs.

Landlord shall have the right to place a “For Rent” sign on any portion of said Premises for six (6) months prior to termination of this Lease and to place a “For Sale” sign thereon at any time.  During such six-month period, following twenty-four (24) hours prior notice to Tenant, Landlord may show the Premises and all parts thereof to prospective tenants between the hours of 8:00 am. and 6:00 p.m. on any day except Sunday or any legal holiday on which Tenant shall not be open for business.

  

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18.           Water and Other Damage.

Landlord shall not be liable for, and Landlord is hereby released and relieved from all claims and demands of any kind by reason of or resulting from damage or injury to person or property of Tenant or any other party, directly or indirectly caused by (a) dampness, water, rain or snow, in any party of the Premises or in any part of any other property of Landlord or of others, and/or (b) falling plaster, steam, gas, electricity, or any leak or break in any part of the Premises or from any pipes, appliances or plumbing or from sewers or the street or subsurface or from any other place or any part of any other property of Landlord or of others or in the pipes of the plumbing or heating facilities thereof, unless caused by the negligent or intentional omission of Landlord, its agents or employees.

19.           Right of Entry.

Landlord and its agents, servants, employees, including any builder or contractor employed by Landlord shall have the absolute and unconditional right, license and permission, at any and all reasonable times following twenty-four (24) hours notice to Tenant (except in case of emergency when no such notice is feasible), to enter and inspect the Premise or any part thereof, and at the option of Landlord, to make such reasonable repairs and/or changes in the Premises as Landlord may deem necessary or proper and/or to enforce and carry out any provision of this lease.

20.           Termination of Term.

It is agreed that the term of this Lease shall expire and terminate at the end of the original term hereof (or at the expiration of the last renewal term, if this Lease contains a renewal option and the same is properly exercised), without the necessity of any notice by or to any of the parties hereto, unless otherwise provided herein.  If Tenant shall occupy the Premises after such expiration or termination, it is understood that Tenant shall hold the Premises as a tenant from month-to-month, subject to all the other terms and conditions of this lease, at an amount equal to double the highest monthly rental installment reserved in this Lease.  Landlord shall, upon such expiration or termination of this Lease, be entitled to the benefit of all public general or local laws relating to the speedy recovery of possession of lands and tenements held over by tenants that may be now in force or may hereafter be enacted.

21.           Condemnation.

(a)           If, during the term of this Lease, all or a substantial part of the Premises shall be taken by police power or under power of eminent domain, this Lease shall terminate as of, and the rent (basic and additional) shall be apportioned to and abate from and after, the date of taking.  Tenant shall have no right to participate in any award or damages for such taking and hereby assigns all of its right, title and interest therein to Landlord.  For the purposes of this paragraph, “a substantial part of the Premises” shall mean such part that the remainder thereof is rendered inadequate for Tenant’s business and that such remainder cannot practicably be repaired and improved so as to be rendered adequate to permit Tenant to carry on its business with substantially the same efficiency as before the taking.

  

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(b)           If, during the Lease term, less than a substantial part of the Premises (as hereinabove defined) is taken by police power or under power of eminent domain, this Lease shall remain in full force and effect according to its terms; and Tenant shall have no right to participate in any award or damages for such taking and tenant hereby assigns all of its right, title and interest in and to the award to Landlord.  In such event Landlord shall, at its expense, promptly make such repairs and improvements as shall be necessary to make the remainder of the Premises adequate to permit Tenant to carry on its business to substantially the same extent and with substantially the same efficiency as before the taking; provided that in no event shall Landlord be required to expend an amount in excess of the award received by Landlord for such taking.  If, as a result of such taking, any part of the Premises is rendered permanently unusable, the basic annual rent reserved hereunder shall be reduced in such amount as may be fair and reasonable, which amount shall not exceed the proportion which the area so taken or made unusable bears to the total area which was usable by Tenant prior to the taking.  If the taking does not render any part of the Premises unusable, there shall be no abatement of rent.

(c)           For purposes of this section, “taking” shall include a negotiated sale or lease and transfer of possession to a condemning authority under bona fide threat of condemnation for public use, and Landlord alone shall have the right to negotiate with the condemning authority and conduct and settle all litigation connected with the condemnation.  As hereinabove used, the words “award or damages” shall, in the event of such sale or settlement, include the purchase or settlement price.

(d)           Nothing herein shall be deemed to prevent Tenant from claiming and receiving from the condemning authority, if legally payable, compensation for the taking of Tenant’s own tangible property and such amount as may be payable by statute or ordinance toward Tenant’s damages for Tenant’s loss of business, removal and relocation expenses.

22.           Subordination.

This Lease shall be subject to and subordinate at all times to the lien of any mortgages and/or deeds of trust upon the Building now or hereafter to be made, unless the mortgagee or holder of the deed of trust elects to have Tenant’s interest hereunder superior to the interest of the mortgagee or holder of such deed of trust.  This subordination provision shall be self-operative and no further instrument of subordination shall be required.  The Tenant agrees to execute any documents necessary, subsequent to the execution of this Lease, which are required to effect such subordination.  Tenant further hereby constitutes and appoints Landlord as Tenant’s attorney-in-fact to execute any such instrument for and on behalf of Tenant.

  

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23.           Landlord’s Right to Perform Tenant’s Covenants.

If Tenant shall fail to perform any covenant or duty required of it by this Lease or by law, Landlord shall have the right (but not the obligation) to perform the same, and if necessary to enter the Premises for such purposes without notice.  The reasonable cost thereof to Landlord shall be deemed to be additional rent hereunder payable by Tenant, shall be due and payable by Tenant upon demand, and Landlord shall have the same rights and remedies with respect to such additional rent as Landlord has with respect to the rental reserved hereunder.

24.           Attornment.

(a)           If Landlord assigns this Lease or the rents hereunder to a creditor as security for a debt, Tenant shall, after notice of such assignment and upon demand by Landlord or the assignee, pay all sums thereafter becoming due to Landlord hereunder either to Landlord or to such assignee, as required by such notice.  Tenant shall also, upon receipt of such notice, have all policies of insurance required hereunder endorsed so as to protect the assignee’s interest as it may appear and shall deliver such policies, or certificates thereof, to the assignee.

(b)           In the event the Premises are sold at any foreclosure.  sale or sales, by virtue of any judicial proceedings or otherwise, this Lease shall continue in full force and effect and Tenant agrees, upon request, to attorn to and acknowledge the foreclosure purchase or purchasers at such sale as the landlord hereunder.  It is understood that such purchaser or purchasers may, at its or their option, terminate this Lease immediately upon giving written notice thereof to Tenant.

25.           Non-Waiver of Future Enforcement.

The receipt of rent by Landlord, with knowledge of any breach of this Lease by Tenant or of any default on the part of Tenant in the observance of performance of any of the conditions or covenants of this Lease, shall not be deemed to be a waiver of any provision of this Lease, including the provision breached.  No failure on the part of Landlord or of the Tenant to enforce any covenant or provision herein contained nor any waiver of any right hereunder by Landlord or Tenant shall discharge or invalidate such covenant or provision or shall affect the right of Landlord or tenant to enforce the same in the event of any subsequent default.  The receipt by Landlord of any rent or any sum of money or any other consideration hereunder paid by Tenant after the termination, in any manner, of the term herein demised, or after the giving by Landlord of any notice hereunder to effect such termination, shall not reinstate, continue or extend the term herein demised, or destroy, or in any manner impair the efficacy of any such notice of termination as may have been given hereunder by Landlord to Tenant prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by Landlord.  Neither acceptance of the keys nor any other act or thing done by Landlord or any agent or employee during the term herein demised shall be deemed to be an acceptance of a surrender of the Premises, excepting only an agreement in writing signed by Landlord accepting or agreeing to accept such surrender.

  

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26.           Personal Property Taxes.

Tenant shall be responsible for and shall pay any taxes or assessments levied or assessed during the term of this Lease against any leasehold interest of Tenant or personal property or trade fixtures of Tenant of any kind, owned by Tenant or placed in, upon or about the Premises by Tenant.

27.           Recordation of Lease.

Tenant agrees that it will, upon.  Landlord’s request, execute a memorandum of this Lease in a form suitable for recording under applicable Maryland law.  The party recording such Memorandum of Lease shall pay all costs of recordation, including any transfer or recordation taxes thereon.

28.           Notices.

Any notice required by this Lease shall be sent by certified mail to Landlord at: c/o Merritt, 2066 Lord Baltimore Drive, Baltimore, Maryland 21244.  Any notice required by this Lease shall be sent by certified mail to Tenant at:

6011 University Boulevard

Suites 370-390

Ellicott City, MD 21043

(if no address is specified, such notices to Tenant shall be addressed to the Premises). Either party may, at any time, and from time to time, designate in writing a substitute address for that set forth above, and thereafter all notices to such party shall be sent by certified mail to such substitute address.

29.           Waiver of Jury Trial.

THE LANDLORD AND THE TENANT WANE ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, COUNTERCLAIM, OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS LEASE.  THIS WAIVER APPLIES TO ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS AND PROCEEDINGS, INCLUDING PARTIES WHO ARE NOT PARTIES TO THIS LEASE.  THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY THE TENANT AND THE TENANT ACKNOWLEDGES THAT NEITHER THE LANDLORD, NOR ANY PERSON ACTING ON BEHALF OF THE LANDLORD, HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT.  THE TENANT FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED (OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, IN THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

  

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30.           Severability.

(a)           It is agreed that, for the purpose of any suit brought or based on this Lease, this Lease shall be construed to be a divisible contract, to the end that successive actions may be maintained thereon as successive periodic sums shall mature or be due hereunder, and it is further agreed that failure to include in any suit or action any sum or sums then matured or due shall not be a bar to the maintenance of any suit or action for the recovery of said sum or sums so omitted; and Tenant agrees that it will not, in any suit or suits brought or arising under this Lease for a matured sum for which judgment has not previously been obtained or entered, plead, rely on or interpose the defenses of res adjudicata, former recovery, extinguishment, merger, election of remedies or other similar defense as a default said suit or suits.

(b)           If any term, clause or provision of this Lease is declared invalid by a court of competent jurisdiction, the validity for the remainder of this Lease shall not be affected thereby but shall remain in full force and effect.

31.           Non-Waiver.

It is understood and agreed that nothing herein shall be construed to be a waiver of any of the terms, covenants or conditions herein contained, unless the same shall be in writing, signed by the party to be charged with such waiver, and no waiver of the breach of any covenant herein shall be construed as a waiver of such covenant or any subsequent breach thereof.  No mention in this Lease of any specific right or remedy shall preclude Landlord from exercising any other right or from having any other remedy or from maintaining any action to which it may be otherwise entitled either at law or in equity.

32.           Successors and Assigns.

(a)           Except as herein provided, this Lease and the covenants and conditions herein contained shall inure to the benefit of and be binding upon Landlord its successors and assigns; shall be binding upon Tenant, its successors and assigns (including without limitation any trustee in bankruptcy or debtor-in-possession, and any assignee of the same); and shall inure to the benefit of Tenant and only such assignees of Tenant to whom an assignment by Tenant has been consented to in writing by Landlord.  In the event more than one person, firm or corporation is named herein as Tenant, the liability of all parties named herein as Tenant shall be joint and several.

(b)           In the event Landlord’s interest under this Lease is transferred or assigned and written notice thereof is given to Tenant, Landlord (or any subsequent assignee or transferee of Landlord’s interest under this Lease who gives such notice to Tenant) shall automatically be relieved and released from and after the date of such transfer or conveyance from all liability hereunder.  Further, the liability of Landlord, its successors and assigns, under this Lease shall at all times be limited solely to Landlord’s interest in the land and improvements comprising the Building and in the event the owner of Landlord’s interest in this Lease is at any time an individual, partnership, joint venture or unincorporated association, Tenant agrees that such individual or the members or partners of such partnership, joint venture or unincorporated association shall not be personally or individually liable or responsible for the performance of any of Landlord’s obligations hereunder.

  

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33.           Security Deposit.

(a)           Landlord hereby requires receipt from Tenant of the sum of one hundred forty-three thousand one hundred sixty-two dollars and fifty cents ($143,162.50), which sum represents a security deposit for the faithful performance of Tenant’s obligations under this Lease.  Tenant agrees that Landlord shall have the right, but not the obligation, in its sole discretion and without notice to Tenant to apply said security deposit or any portion thereof to cure or remedy any default by Tenant hereunder, including default in payment of rent.  If Landlord so applies the security deposit or any portion thereof Tenant shall, upon demand, immediately reimburse Landlord for the portion of the security deposit so applied; and any failure of Tenant to do so within five (5) days after Landlord’s demand therefor shall constitute an event of default hereunder.  Said sum, if not sooner applied, shall, be returned to Tenant, without interest, within thirty (30) days after vacating of the Premises by Tenant and termination of this Lease (or upon termination of the last renewal term of this Lease if this Lease contains a renewal option and Tenant properly exercises said option), provided: (i) Tenant is not then in default under any of the provisions of this Lease; (ii) there is no damage to the Premises beyond ordinary wear and tear and the Premises have been left in a clean condition and in good order with all debris, rubbish and trash placed in property containers; (iii) all keys to the Premises have been returned to the Landlord; and (iv) Tenant’s forwarding address h as been left with Landlord.  Tenant further agrees that Landlord shall be entitled to commingle said security deposit with its own funds, and that no mortgagee or holder of a deed of trust on the Premises and no purchaser of said Premises at any foreclosure sale shall have any liability to Tenant for Tenant’s security deposit.

(b)           In the event Tenant becomes a State Chartered Bank and has a net worth of one million dollars ($1,000,000), then the security deposit shall be reduced to seventy-four thousand four hundred forty-four dollars fifty cents ($74,444.50) computed at the rate of six dollars and fifty cents ($6.50) per square foot of the rentable square foot area of the Premises.  Following six (6) months of occupancy in the Building, in the event Tenant has a sustained net worth of ten million dollars ($10,000,000), as evidenced by a statement certified to by Tenant’s Certified Public Accountant and delivered to Landlord, and in the further event that Tenant has not defaulted in the payment of any monetary sum required to be paid by Tenant pursuant to this Lease throughout the entire Lease term up to that point, then Tenant’s security deposit will be reduced to twenty-five thousand dollars ($25,000.00) for the remainder of the lease term.

34.           Notices to Mortgagee.

Tenant agrees that a copy of any notice of default from Tenant to Landlord shall also be sent to the holder of any mortgage or deed of trust on the Premises, provided Tenant has been given written notice of the fact that such mortgage or deed of trust has been made; and Tenant shall allow said mortgagee or holder of the deed of trust a reasonable time, not to exceed ninety (90) days from the receipt of said notice, to cure, or cause to be cured, any such default.  If such default cannot reasonably be cured within the time specified herein, then such additional time as may be necessary shall be allowed, provided the curing of such default is commenced and diligently pursued (including, but not limited to, commencement of foreclosure proceedings if necessary to effect such cure) in which event this Lease shall not be terminated while such remedies are being thus diligently pursued.

  

20

 

35.           Estoppel Certificate.

Tenant shall, at any time and from time to time during the term of this Lease or any renewal thereof, upon request of Landlord, execute, acknowledge, and deliver to Landlord (or its designee) a statement in writing, certifying that this Lease is unmodified and in full force and effect if such is the fact (or if there have been any modifications thereof, that the same is in full force as modified and stating the modifications) and the dates to which the rents and other charges have been paid in advance, if any.  Any such statement delivered pursuant to this paragraph may be relied upon by any prospective purchaser of the estate of Landlord or by the mortgagee or any assignee of any mortgagee or the trustee or beneficiary of any deed of trust constituting a lien on the Premises or the Building.

36.           Insolvency.

(a)           An “Act of Insolvency” shall mean:

(i)           the application by Tenant or any guarantor of Tenant or its or their consent to the appointment of a receiver, conservator, trustee or liquidator of Tenant or any guarantor of Tenant or a substantial part of its or their assets;

(ii)          the admission in writing by Tenant or any guarantor of Tenant of its inability to pay its debts as they become due;

(iii)         the making by Tenant or any guarantor of Tenant of an assignment for the benefit of its creditors;

(iv)         the filing of a petition or an answer seeking a reorganization or an arrangement with its creditors or an attempt to take advantage of any insolvency law;

(v)          the filing of an answer admitting the material allegations of a petition filed against Tenant or any guarantor of Tenant in any reorganization or insolvency proceeding;

(vi)         the entering of an order, judgment or decree by any court of competent jurisdiction adjudicating Tenant or any guarantor of Tenant an insolvent, approving a petition seeking such a reorganization, or appointing a receiver, conservator, trustee or liquidator of Tenant or any guarantor of Tenant or of all or a substantial part of its or their assets; or

  

21

 

(vii)           the commencing of any proceeding under any reorganization, arrangement, insolvency, readjustment, receivership or similar law, and the continuation of such order, judgment, decree or proceeding unstayed for a period of sixty (60) days.

(b)           Upon the occurrence of an Act of Insolvency, this Lease and all rights of Tenant hereunder shall automatically terminate with the same force and effect as if the date of any such event were the date stated herein for the expiration of the term, and Tenant shall vacate and surrender the Premises, but shall remain liable as herein provided.  Landlord reserves any and all remedies provided herein or at law or in equity.

(c)           No default under this Lease by Tenant, either prior to or subsequent to any Act of Insolvency, shall be deemed to have been waived unless expressly done so in writing by Landlord.

(d)           Neither Tenant’s interest in this Lease, nor any estate created hereby in Tenant nor any interest herein or therein, shall pass to any trustee, conservator or receiver or assignee for the benefit of creditors or otherwise by operation of law.

37.           Environmental Provisions.

(a)           Tenant and its successors and assigns shall use and operate the building, the property and the leased premises, respectively, at all times during the term hereof, under and in compliance with all federal and State of Maryland laws and regulations, and in compliance with all applicable Environmental Legal Requirements.  “Environmental Legal Requirements” shall mean any applicable law relating to public health, safety or the environment, including, without limitation, relating to releases, discharges or omissions to air, water, land or groundwater, to the withdrawal or use of groundwater, to the use and handling of polychlorinated biphenyls (“PCB’s”) or asbestos, or asbestos containing products, to the disposal, treatment, storage or management of solid or other hazardous or harmful wastes or to exposure to toxic, hazardous or other harmful materials (collectively “Hazardous Substances”) to the handling, transportation, discharge or release of gaseous or liquid substance and any regulation or final order or directive issues pursuant to such statute or ordinance, in each case applicable to the premises, the building or its operation, construction or modification, including without limitation the following; the Clean Air Act, the Federal Water Pollution Control Act (“FWPCA”), the Safe Drinking Water Act, the Toxic Substances Control Act, the Comprehensive Environmental Response Compensation and Liability Act, as amended by the Solid and Hazardous Waste Amendments of 1984 (“RCRA”), the Occupational Safety and Health Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Solid Waste Disposal Act, and any state statutes addressing similar matters, and any state statute providing for financial responsibility for clean-up or other actions with respect to the release or threatened release of any of the above-referenced substances.

  

22

 

(b)           Tenant hereby indemnifies and saves Landlord harmless from all liabilities and claims arising from the use, storage or placement of any Hazardous Substances upon the premises or elsewhere within the Building or property of Landlord (if brought or placed thereon by Tenant, its agents, employees, contractors or invitees); and Tenant shall (i) within fifteen (15) days after written notice thereof, take or cause to be taken, at its sole expense, such actions as may be necessary to comply with all Environmental Legal Requirements and (ii) within fifteen (15) days after written demand therefor, reimburse Landlord for any amounts expended by Landlord to comply with any Environmental Requirements with respect to the premises or with respect to any other portions of Landlord’s Building or property as the result of the placement or storage of Hazardous Substances by Tenant, its agents, employees, contractors or invitees, or in connection with any judicial or administrative investigation or proceeding relating thereto, including, without limitation, reasonable attorneys’ fees, fines or other penalty payments.

(c)           For purposes of this provision, Tenant shall be conclusively deemed to have violated the Environmental Legal Requirements.  if (i) any notice or order is directed to either Landlord or Tenant by any governmental agency, body, or court alleging that such violation has occurred; or (ii) if Landlord obtains and delivers to Tenant a report prepared by an engineer or other party engaged in the business of testing or determining the existence of Hazardous Substances, which report states that there are Hazardous Substances used, stored or placed upon the premises.  In the event Tenant is deemed to have violated any of the Environmental Legal Requirements as set forth in the preceding sentence, Landlord shall have the right and option, after fifteen (15) days prior written notice to Tenant, to terminate this lease by written notice thereof to Tenant, in which event Landlord shall retain all rights and remedies, and Tenant shall be subject to all liabilities, set forth in Article 13 of this lease notwithstanding such termination.

(d)           Landlord represents and warrants that, at the commencement of the Lease term, the Premises shall be in compliance with all Environmental Legal Requirements.

38.           Rules and Regulations.

Tenant shall faithfully observe and comply with the rules and regulations attached hereto as Exhibit F, and with any amendments or modifications thereto that Landlord shall, from time to time, promulgate with respect to the Building.  Any such amendments or modifications to the rules and regulations shall be binding upon Tenant delivery of a copy of them to Tenant.  Landlord shall not be responsible to Tenant for the nonperformance of any of said rules and regulations by any other tenants or occupants.

39.           Captions.

The captions of the various sections of this Lease are for convenience only and are not a part of this Lease.  Such captions shall not be construed to define or limit any of the provisions of this Lease.

40.           Final and Entire Agreement.

This Lease contains the final and entire agreement between the parties hereto, and neither they nor their agents shall be bound by any terms, conditions or representations not herein written.

  

23

 

41.          Tenant Representative.

The name, address and telephone number of Tenant representative to be contacted in event of emergency are as follows:

Paul Brown 443-812-6711

42.          Time.  Time is of the essence for all purposes in this Lease.

43.          Charter.

(a)           Tenant agrees to use best efforts to obtain a State Banking Charter at Tenant’s sole cost.  Landlord agrees to cooperate with Tenant by signing documents necessary in order for Tenant to obtain the Charter, at no cost to Landlord.  Tenant agrees to transmit to Landlord a summary of Tenant’s Initial Charter application as well as all provisions of the Charter that pertain to this lease.  Tenant further agrees to give Landlord prompt written notice when and if Tenant obtains the Charter (“Tenant’s Notice”) together with a copy of the Charter.

(b)           Landlord shall not be required to commence any work or make any installations as set forth on Exhibit A or Exhibit B or Exhibit C hereof (“Landlord’s Work”) except as herein provided.  Landlord shall commence Landlord’s Work with respect to the Drive-Through Building on or before February 1, 2004, provided Tenant delivers to Landlord a Letter of Credit (“L/C”) in the face amount of One Hundred Thousand Dollars ($100,000.00) which shall be considered an additional security deposit.  Landlord shall commence Landlord’s Work on the.  Branch Banking Suite and the Corporate Office Suite on or before March 1, 2004, provided Tenant delivers another L/C to Landlord in the face amount of One Hundred Thousand Dollars ($100,000.00) which shall be considered an additional security deposit.  Landlord shall have one hundred twenty (120) days from the date of receipt of the first One Hundred Thousand Dollar L/C to substantially complete Landlord’s Work with respect to the Drive-Through Building, and Landlord shall have ninety (90) days from Landlord’s receipt of the second One Hundred Thousand Dollar L/C to substantially complete Landlord’s Work with respect to the Branch Banking Suite and Corporate Offices Suite.  If Tenant’s Notice is received by Landlord after February 1, 2004, and Landlord does not substantially complete Landlord’s Work by June 1, 2004, then notwithstanding the fact that Landlord’s Work has not then been substantially completed, the term of this Lease and Tenant’s obligation to commence payment of rent shall nevertheless begin as of June 1, 2004, and Landlord shall continue Landlord’s Work with reasonable promptness thereafter until completion.  Upon unconditional issuance of the Charter and delivery of a copy thereof to Landlord, Landlord agrees to release the two (2) L/Cs, aforementioned Letters of Credit.

(c)           All L/Cs shall be issued by a national bank and shall provide that if a default occurs, Landlord shall have the unconditional right to draw upon all security deposit instruments to compensate Landlord for offset rent, defaults and Landlord’s Work, or that portion thereof, which has been performed by Landlord in accordance with the provisions of this Section.  All other terms and provisions of the L/Cs shall be subject to Landlord’s reasonable approval.

  

24

 

44.          Renewal Options.

Provided Tenant is not then in default hereunder, Tenant shall have the right and option to extend the term of this Lease for two (2) additional periods of five (5) years each, by notifying Landlord in writing of its intention to do so not later than nine (9) months prior to the expiration of the then current Lease term.  If Tenant elects to extend this Lease for the first additional five (5) year period, by giving Landlord timely written notice of its election to do so, this Lease shall be extended for such five (5) year period under the same terms and conditions as are herein set forth except that Landlord shall not be required to perform any of Landlord’s Work and the base annual and monthly rentals during each year of such extended term shall be increased by three percent (3%) over the base rentals for the preceding Lease year.  If Tenant elects to extend this Lease for the second additional five (5) year term by giving timely written notice to Landlord of its election to do so, this Lease shall be extended for such additional five (5) year period under the same terms and conditions as are herein set forth except that Landlord shall not be required to perform any Landlord’s Work and the base annual rental for the first year of such extended term shall be equal to the greater of (i) the then prevailing market rate (which shall be the same rental rate then being charged for similar space within comparable buildings within the Columbia, Maryland Metropolitan Area); or (ii) an amount equal to three percent (3%) in excess of the base rental for the last year of the first extended term.  The base annual rental for the first year of such second extended term, as so determined, shall be increased by three percent (3%) per year during each subsequent year of the second extended term.  Tenant shall have no right to extend or renew the Lease term except as set forth in this Section 44.

45.          Landlord’s Work.

(a)           Subject to the provisions of Section 43 hereof, Landlord shall construct the Branch Banking Suite in a “turnkey” condition in accordance with the Work Letter attached hereto as Exhibit D using building standard materials and in accordance with the floor plan attached hereto as Exhibit A, and Landlord shall construct the Corporate Offices Suites in similar “turnkey” condition in accordance with the Work Letter attached hereto as Exhibit Dl using building standard materials as shown on the Floor Plan attached hereto as Exhibit B.  Landlord shall also, subject to Section 43 hereof, construct the Drive-Through Building as shown on Exhibit C and in accordance with the Work Letters attached hereto as Exhibit D2 and Exhibit E.  Tenant, will be responsible for payment of all costs associated with the interior finishes of the Drive-Through Building, the Drive-Through Tubing System, telecommunications from the Drive-Through Building to the Branch Banking Suite, security requirement as determined by Tenant (i.e., bullet-proof glass or bullet-proof wall requirements).

(b)           Tenant shall also be responsible for all costs of any tenant improvements that (i) exceed the scope of the Work Letter (Exhibit D) for Tenant specific interior finishes for the Branch Banking Suite, such as millwork, bullet-proof glass or bullet-proof wall requirements, safe and security requirements and (ii) exceed the scope of the Work Letter (Exhibit D1) for Tenant specific interior finishes for the Corporate Office Suite and (iii) exceed the scope of the Work Letters (Exhibit D2 and Exhibit E) for the Drive-Thru Building, as determined by Landlord and Tenant.  All such requirements of Tenant above the Standard Work Letters (Exhibit D, Exhibit Dl, Exhibit D2 and Exhibit E) must be submitted to Landlord by January 1, 2004.  Landlord will be the general contractor for the entire build-out of the Premises including the drive-thru facility.

  

25

 

WITNESS the hands and seals of the parties hereto as of the day and year first above written.

	
WITNESS:

	  	
MERRITT-HP, LLC

	  	  	
By:

	
MERRITT MANAGEMENT CORPORATION, AGENT

	  	  	  	  
	   	  	
By:

	
_________________________(SEAL)

	 	 	 	 
	  	  	  	
LANDLORD

	
WITNESS/ATTEST:

	  	
HOWARD BANK

	  	  	  	  
	   	  	
By:

	
_________________________(SEAL)

	 	 	 	 
	  	  	  	
TENANT

 

  

26

 

EXHIBIT A - BRANCH BANKING SUITE FLOOR PLAN

EXHIBIT B - CORPORATE OFFICE SUITE FLOOR PLAN

EXHIBIT C - DRIVE-THROUGH BUILDING FLOOR PLAN

EXHIBIT D - WORKLETTER FOR BRANCH BANKING SUITE

EXHIBIT D1- WORKLETTER FOR CORPORATE OFFICE SUITE

EXHIBIT D2- WORKLETTER FOR DRIVE-THRU BUILDING

EXHIBIT E- CONSTRUCTION OF DRIVE-THRU BUILDING

EXHIBIT F - RULES AND REGULATIONS

  

  

 

  

  

 

  

  

 

  

  

 

Exhibit D

WORKLETTER FOR HOWARD BANK BRANCH LOCATION

Following is the tenant improvement workletter.  Landlord commits to provide the tenant improvements based on the specifications described as follows:

For the purpose of distinguishing between base building and tenant improvements, Landlord defines base building as follows:

	
  

	
*

	
Core area - HVAC installed and operating

	
  

	
*

	
Common area restrooms completely finished

	
  

	
*

	
Main sprinkler loop - standpipe and branching installed

	
  

	
*

	
Power distribution to the electric closets on each floor

	
  

	
*

	
Two wet columns separate from the core

	
  

	
*

	
Special lighting and above standard ceilings in all lobbies and main corridors

	
  

	
*

	
Granite Flooring in the elevators and vinyl wallcovering in the lobbies on the tenant floors

Tenant will be provided a finish per the following standards:

	
  

	
*

	
Ceiling will be 2 x 2 suspended tegular fissured acoustical with white metal grid, finished ceiling height to be 9’6”, (USG #323 or equal).

	
  

	
*

	
Lighting - T-8 high efficiency - 3 tube, 277 volt 2 x 4 lay-in type with parabolic 78 cell lenses and return air-type fixtures.  Lighting to provide 70 f.c. @ 30” above finished floor.  Lighting switch to be individual for single offices.  Gang switching to be used for open areas.

	
  

	
*

	
Sprinkler - a complete fire protection system per code will be provided throughout.  The system will have semi-recessed chrome heads.

	
  

	
*

	
Floor covering - Vinyl tile to be Armstrong Exelon.  Carpet to be 30 oz.  patterned loop Queen Commercial Finalist or equal; or 30 oz. cut pile Queens Commercial Baytowne or equal rolled goods.  All carpet to be direct glue down.

	
  

	
*

	
Base shall be a standard 4” vinyl base provided throughout.

  

  

 

	
  

	
*

	
Window blinds - 1” venetian mini blinds, Levelor or equal, on all exterior windows.

	
  

	
*

	
Interior doors - solid core, 3’ x 8’0” wood veneer.  Hardware to be chrome lever style salage or equal locksets.

	
  

	
*

	
Entrance doors - main entry doors from lobby to corridor to be 3’ x 8’0” double frameless glass doors with polished chrome hardware and semi-concealed hinges.  Tenant will also have an exterior entrance in accordance with Exhibit A.

	
  

	
*

	
Electrical - provide convenience outlets 110 volt throughout the space.  Three (3) outlets per private office along with one (1) outlet every 15 linear feet of open area partitioning.  The standard electric load available below the finished ceiling is 4 watts per square foot.

	
  

	
*

	
HVAC - A medium velocity VAV system with one VAV box per 400-600 SF throughout as required.  A hot water perimeter base board, multi-zone heating system.  The HVAC system is designed to maintain a 72 Degree Fahrenheit temperature (+/- 2 Degrees Fahrenheit) with a relative humidity level between 50-60%.  The building has a night set back mode whereby winter temperatures in the building may reach 60 Degrees Fahrenheit after hours and summer temperatures reaching 80 Degrees Fahrenheit.  The building does not have actual humidification, but does have de-humidification ability.

	
  

	
*

	
Kitchen Area - to include 8’ of base and overhead cabinets with stainless steel sink for spaces 5,000 square feet or greater.  Plumbing connector for one (1) coffee maker to be 1/4” or 3/8” copper line with pet cock valve below counter.

	
  

	
*

	
Drywall - unlimited quantities based on a ratio of 70% open office 30% private office scenario.  All interior drywall is 1/2” with 3 5/8” metal studs 16” on center, all partitions contain sound batt insulation.

	
  

	
*

	
Paint.

Tenant will be responsible for all costs associated with improvements above this standard work letter for Tenant specific interior finishes (i.e.  millwork, counter for the tellers, bullet-proof glass or bullet-proof wall requirements, vault requirements and security requirements).  Tenant will also be responsible for all costs associated with the installation of ATM machines.

  

  

 

Exhibit Dl

WORKLETTER FOR HOWARD BANK CORPORATE OFFICES

Following is the tenant improvement workletter.  Landlord commits to provide the tenant improvements based on the specifications described as follows:

For the purpose of distinguishing between base building and tenant improvements, Landlord defines base building as follows:

	
  

	
*

	
Core area - HVAC installed and operating

	
  

	
*

	
Common area restrooms completely finished

	
  

	
*

	
Main sprinkler loop - standpipe and branching installed

	
  

	
*

	
Power distribution to the electric closets on each floor

	
  

	
*

	
Two wet columns separate from the core

	
  

	
*

	
Special lighting and above standard ceilings in all lobbies and main corridors

	
  

	
*

	
Granite Flooring in the elevators and vinyl wallcovering in the lobbies on the tenant floors

 

Tenant will be provided a finish per the following standards:

 

	
  

	
*

	
Ceiling will be 2 x 2 suspended tegular fissured acoustical with white metal grid, finished ceiling height to be 9’6”, (USG #323 or equal).

	
  

	
*

	
Lighting - T-8 high efficiency - 3 tube, 277 volt 2 x 4 lay-in type with parabolic 78 cell lenses and return air-type fixtures.  Lighting to provide 70 f.c. @ 30” above finished floor.  Lighting switch to be individual for single offices.  Gang switching to be used for open areas.

	
  

	
*

	
Sprinkler - a complete fire protection system per code will be provided throughout.  The system will have semi-recessed chrome heads.

	
  

	
*

	
Floor covering - Vinyl tile to be Armstrong Exelon.  Carpet to be 30 oz patterned loop Queen Commercial Finalist or equal; or 30 oz. cut pile Queens Commercial Baytowne or equal rolled goods.  All carpet to be direct glue down.

	
  

	
*

	
Base shall be a standard 4” vinyl base provided throughout.

	
  

	
*

	
Window blinds - 1” venetian mini blinds, Levelor or equal, on all exterior windows.

  

  

 

	
  

	
*

	
Interior doors - solid core, 3’ x 8’0” wood venear.  Hardware to be chrome lever style salage or equal locksets.

	
  

	
*

	
Entrance doors - main entry doors from lobby to corridor to be 3’ x 6’0” solid core wood door with  sidelights and Mortise locksets.  Space 5,000 square feet or greater to be 3’ x 8’0 double frameless glass doors with polished chrome hardware and semi-concealed hinges.

	
  

	
*

	
Electrical - provide convenience outlets 110 volt throughout the space.  Three (3) outlets per private office along with one (1) outlet every 15 linear feet of open area partitioning.  The standard electric load available below the finished ceiling is 4 watts per square foot.

	
  

	
*

	
HVAC - A medium velocity VAV system with one VAV box per 400-600 SF throughout as required.  A hot water perimeter base board, multi-zone heating system.  The HVAC system is designed to maintain a 72 Degree Fahrenheit temperature (+/- 2 Degrees Fahrenheit) with a relative humidity level between 50-60%.  The building has a night set back mode whereby winter temperatures in the building may reach 60 Degrees Fahrenheit after hours and summer temperatures reaching 80 Degrees Fahrenheit.  The building does not have actual humidification, but does have de-humidification ability.

	
  

	
*

	
Kitchen Area - to include 8’ of base and overhead cabinets with stainless steel sink for spaces 5,000 square feet or greater.  Plumbing connector for one (1) coffee maker to be 1/4” or 3/8” copper line with pet cock valve below counter.

	
  

	
*

	
Drywall - unlimited quantities based on a ratio of 70% open office 30% private office scenario.  All interior drywall is 1/2” with 3 5/8” metal studs 16” on center, all partitions contain sound batt insulation.

	
  

	
*

	
Paint.

  

  

 

Exhibit D2

WORKLETTER FOR HOWARD BANK DRIVE-THRU BUILDING

Following is the tenant improvement workletter.  Landlord commits to provide the tenant improvements based on the specifications described as follows:

Tenant will be provided a finish per the following standards:

	
  

	
*

	
One (1) restroom completely finished.

	
  

	
*

	
Ceiling will be 2 x 2 suspended tegular fissured acoustical with white metal grid, finished ceiling height to be 9’6”, (USG #323 or equal).

	
  

	
*

	
Lighting - T-8 high efficiency - 3 tube, 277 volt 2 x 4 lay-in type with parabolic 78 cell lenses

	
  

	
*

	
Floor covering - Vinyl tile to be Armstrong Exelon.  Carpet to be 30 oz.  patterned loop Queen Commercial Finalist or equal; or 30 oz. cut pile Queens Commercial Baytowne or equal rolled goods.  All carpet to be direct glue down.

	
  

	
*

	
Base shall be a standard 4” vinyl base provided throughout.

	
  

	
*

	
Electrical - provide convenience outlets 110 volt throughout the space.  The standard electric load available below the finished ceiling is 4 watts per square foot.

	
  

	
*

	
Drywall – All interior drywall is 1/2” with 3 5/8” metal studs 16” on center, all partitions contain sound batt insulation.

 

	 	
*

	
Paint.

 

  

  

 

Exhibit E

HOWARD BANK DRIVE-THRU BUILDING

I.  EXTERIOR CONSTRUCTION

	
SIZE:

	
10’ X 22’6” single story building with a canopy in accordance with Exhibit C.  The building will be constructed in a manner that is visually consistent with the existing buildings as determined solely by the Landlord.

	
DRIVE-THUR LANES:

	
Two (2) Drive-thru lanes in accordance with Exhibit C.  Tenant will be responsible for the costs associated with the tubing system and any stop lights that are required to he attached to the Drive-Thru.

	
EXTERIOR WALLS:

	
To be either 8” or 10” concrete block with core fill foam insulation to height of-approximately 12’ with a simulated stucco finish.

	
ROOF:

	
To he a metal deck with 45 mil EPDM rubber roof, as manufactured by Firestone Tire and Rubber Company.  Installation to be loosely-laid and ballasted in accordance with manufacturer’s specifications.  Roof to be insulated with 4” expanded polystyrene hoard .049).

	
FLOOR:

	
To be 5” concrete reinforced with Fiber Mesh (trade name), or equal.  Soil below slab to be compacted.

	
WINDOWS:

	
Tenant will he responsible for the cost of the bullet proof glass window per Exhibit C along with any sliding drawers leading to the perimeter.

	
ELECTRIC SERVICE:

	
Landlord will install a separate meter and provide sufficient power to operate the Drive-Thor and Drive-Thou Building.

	
SPRINKLER:

	
There will he no sprinkler system provided.

	
UTILITY WORK:

	
Includes all water and sewer lines needed• for the installation of the bathroom.

	
HVAC:

	
Electric heat pump mounted on the roof.  There will be no natural gas.

  

  

 

II. INTERIOR CONSTRUCTION

	
INTERIOR FINISHES:

	
In accordance with Exhibit D2.  Tenant will be responsible for all costs associated with the interior finishes above the work-letter (Exhibit D2). Tenant will be responsible for all costs associated with telecommunications from the Drive-thru to the Branch and security requirements.

  

  

 

Exhibit F

COLUMBIA CORPORATE PARK 100

RULES AND REGULATIONS

1.           Tenant and its agent and employees shall not loiter in or upon or in any way obstruct the grounds, sidewalks, driveways or parking areas, or the common halls, passages, exits, entrances, corridors, in or about the Building in which the Demised Premises are located or use such areas for any purpose other than for ingress or egress from the Demised Premises.  These areas’ are not for the use of the general public, and Landlord reserves the right to control and prevent access LC them by all persons whose presence in the judgment of the Landlord, will be prejudicial to the safety, character, reputation and interests of the Buildings and its tenants.  However, nothing in these Rules and Regulations shall be construed to prevent access by persons with whom Tenant usually deals in the ordinary course of its business, unless those persons %isolated the Rules and Regulations of the Building or are engaged in illegal activities.

2.           Waterclosets and urinals shall not be used for any purpose other than those for which they were construed; and no sweepings, rubbish, ashes, newspaper or any other substances of any kind shall be thrown, into them.  Waste and excessive or unusual use of electricity or water is prohibited.

3.           The windows, doors, partitions and lights that reflect or admit light into the halls or other places of the Building shall not be obstructed.  NO SIGNS, ADVERTISEMENTS OR NOTICES STALL BE INSCRIBED, PAINTED, AFFIXED OR DISPLAYED IN, ON, UPON OR BEHIND ANY WINDOWS, except as may be required by law or agreed upon by the parties in writing: and no sign, advertisement or notice shall be inscribed, painted or affixed on any doors, partitions or other part of the inside of the Building, without the prior written consent of Landlord.  If such consent be given by Landlord, any such advertisement or notice shall be inscribed, painted or affixed by Landlord, or a company approved by Landlord, but the cost of the same shall be charged to and be paid by Tenant, and Tenant agrees to pay the same promptly, on demand.  All signs, advertisements or notices permitted herein shall be only of such color, size, style, place and material as approved by Landlord in writing.

4.           No electric wiring of any kind is to be introduced without Landlord’s prior written consent.  If Tenant desires telegraphic, telephone, burglar alarm or signal services and if Landlord consents in writing thereto, the wiring must be connected as directed by Landlord, and no stringing or cutting of wires will be allowed, except if specifically permitted in the prior written consent of Landlord.  The electric wiring shall be done only by contractors approved by Landlord in writing.  No tenant shall lay linoleum or other similar floor coverings so that the same shall be in direct contact with the floor of the Premises; and if linoleum or other similar floor coverings are desired to be used, an interlining of builder’s deadening felt shall be first affixed to the floor by a paste or other material soluble in water, the use of cement or other similar adhesive material being expressly prohibited.

  

  

 

5.           Landlord will not be responsible for loss of or damage to any equipment or freight from any cause; but all damage done to the Building by moving or maintaining any such equipment or freight shall be repaired at the expense of Tenant.  All safes shall stand on a base of such size as shall be designated by the Landlord.

6.           No machinery of any kind or articles of unusual weight or size will be allowed in the Building, without the prior written consent of Landlord.  Business machines and mechanical equipment, if consented to by Landlord, shall be placed and maintained by Tenant, at Tenant’s expense, in setting sufficient to absorb and prevent all vibration, noise and annoyance.

7.           No additional lock or locks of similar devices shall be placed by Tenant on any door, window or transom in the Building, without prior written consent of Landlord.  Two keys will he furnished Tenant by Landlord.  Tenant, its agents and employees, shall not change any locks.  Tenant shall make known to Landlord the explanation of all combination locks or safes, cabinets and vaults, and all keys to doors and washrooms shall be returned to Landlord at the termination of the tenancy, and, in the event of loss of any keys furnished, Tenant shall pay Landlord the cost thereof.

8.           No bicycles, vehicles or animals of any kind shall be brought into or kept in or about the Premises of the Building.

9.           The requirements of Tenant will be attended to only upon application at the office of the Building.  Employees of Landlord shall not perform any work for Tenant or do anything outside of their regular duties, unless under special written instructions from the office of Landlord.

10.           The Premises shall not be used for lodging or sleeping purposes, and cooking therein is prohibited.

11.           Tenant shall not conduct, or permit any other person to conduct, any auction upon the Premises; manufacture or store goods, wares or merchandise upon the Premises, without the prior written approval of Landlord, except the storage of usual supplies and inventory to be used by Tenant incidental to the purposes for which Tenant may use the Premises; permit the Premises to be used for gambling; make any noises in the Building that are objectionable to Landlord or other occupants of the Building; permit to be played any musical instrument in the Premises, or permit any unusual odors to be produced upon the Premises; or create or maintain a nuisance thereon.  Tenant shall not occupy or permit any portion of the Premises leased to him to be occupied as an office for a public stenographer or typewriter, or for the possession, storage, manufacture, or sale of intoxicating beverages, narcotics, tobacco in any form, or as a barber or manicure shop.

12.           No curtains, blinds, shades, screens, awnings or other form of inside or outside window covering, or window ventilators or similar devices shall be attached to or hung in, or used in connection with, any window or door of the Premises, without the prier written consent of Landlord if Landlord consents, such coverings or devices must be of a quality, type, design, and color, and attached it a manner approved by Landlord.

  

  

 

13.           Canvassing, soliciting and peddling in the Building are prohibited, and Tenant shall cooperate to prevent same.  Tenant shall not exhibit, sell or offer for sale on the Premises or in the Building any article or thing, except those articles and things essentially connected with the stated use of the Premises, without the prior written consent of Landlord.

14.           There shall not be used on she Premises or in the Building, either by Tenant or by others in the delivery or receipt of merchandise, any hand trucks except those equipped with rubber tires and side guards:

15.           Each tenant, before closing and leaving the Premises, shall be responsible for the closing and locking of all entrance doors.

16.           Tenant shall not use the name “Columbia Corporate Park 100” for any other purpose other than that of a business address of Tenant, and shall never use any picture or likeness of the Building in any circulars, notices, advertisements or correspondence without the Landlord’s prior written consent.  Tenant shall not advertise the business, profession or activities of the Tenant conducted in the Building in any manner which violates’ the letter or spirit of any code of ethics adopted by any recognized association or organization pertaining to such business, profession or activities.

17.           Landlord hereby reserves to itself any and all rights not granted to Tenant hereunder, including, but not limited to, the following rights which are reserved to Landlord for its purposes in operating the building:

(a)           the exclusive right to use the name “Columbia Corporate Park 100” for all purposes, except that Tenant may use the name as its business address and for no other purpose;

(b)           the right to change the name or address of the Building or of the project without notice or liability to Tenant;

(c)           the right to install and maintain a sign or signs on the exterior of the Building;

(d)           the exclusive right to use or dispose of the use or dispose of the use of the roof of the Building;

(e)           the right to limit the space on the directory of the Building to be allotted to Tenant;

(f)           the right to grant to anyone the right to conduct any particular business or undertaking in the Building.

18.           In addition to all other liabilities for breach of any provision of these Rules and Regulations, Tenant shall pay to Landlord all damages caused by such breach.  The violation of any such provision may also be restrained by injunction.Unassociated Document

Exhibit 10.12

REVISED 3/8/2004

SHOPPING CENTER LEASE

This lease (“Lease”), dated as of JANUARY 22, 2004, by and between HRVC, LLC (“Landlord”) and HOWARD BANK, a Maryland chartered banking institution (“Tenant”);

WITNESSETH:

WHEREAS, Landlord and Tenant wish to enter into this Lease on the terms and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants and agreements contained in this Lease, Landlord and Tenant hereby agree as follows:

Tenant hereby leases the Leased Premises (as hereinafter defined) from Landlord and Landlord hereby leases the Leased Premises to Tenant upon, and subject to, the terms and conditions hereinafter set forth in this Lease.

1.           Basic Lease Provisions and Definitions.

In addition to other terms defined in this Lease, the following terms whenever used in this Lease with the first letter of each word capitalized shall have only the meanings set forth in this Article, unless such meanings are expressly modified, limited or expanded elsewhere herein.

	
(A)

	
Shopping Center Location:

	
Depicted on Exhibit “A”, located in Hickory Ridge Columbia, MD Site No.: SMDC0211/

	  	  	  
	
(B)

	
Leased Premises:

	
The premises identified as Plot “48” shown hatched on Exhibit “A”, and adjacent drive-through lane (see Article 2).

	  	  	  
	
(C)

	
Floor Area:

	
2,400 square feet (see Article 2.

	  	  	  
	
(D)

	
Lease Commencement Date:

	
The earlier of: (a) October 1, 2004 or (b) the later of (i) May 1, 2004; or (ii) the date Tenant receives approval to commence banking operations (see Article 2).  See also Article 35 regarding Tenant’s right to terminate this Lease for failure to obtain approval to commence banking operation.

	  	  	  
	
(E)

	
Rent Commencement Date:

	
The Lease Commencement Date (see Article 2).

	  	  	  
	
(F)

	
Lease Term:

	
Commencing on the Lease Commencement Date and ending at 12 noon on the Expiration Date (see Article 2).

  

  

  

	
(G)

	
Expiration Date:

	
The last day of the calendar month in which occurs the 10th anniversary of the day immediately preceding the Rent Commencement Date (see Article 2).

	  	  	  
	
(G-1)

	
Additional Term:

	
One (1) five (5) year option.  See Rider “B” Article 33.

	  	  	  
	
(H)

	
Base Rent Schedule – Original Term (see Article 3):

	  

	
Lease Year

	
Annual Base Rent

	
Monthly Installment

	
1

	
$119,000.00

	
$  9,916.67

	
2

	
$122,570.00

	
$10,214.17

	
3

	
$126,247.10

	
$10,520.59

	
4

	
$130,034.51

	
$10,836.21

	
5

	
$133,935.55

	
$11,161.30

	
6

	
$137,953.61

	
$11,496.13

	
7

	
$142,092.22

	
$11,841.02

	
8

	
$146,354.99

	
$12,196.25

	
9

	
$150,745.64

	
$12,562.14

	
10

	
$155,268.01

	
$12,939.00

	
(H)(i)

	
Base Rent – Additional Term (see Articles 3 and 33):

	  

	
Lease Year

	
Annual Base Rent

	
Monthly Installment

	
1

	
$178,558.21

	
$14,879.85

	
2

	
$183,914.90

	
$15,326.24

	
3

	
$189,432.34

	
$15,786.03

	
4

	
$195,115.31

	
$16,259.61

	
5

	
$200,968.78

	
$16,747.40

 

	
(I)

	
Tax Rent:

	
As provided in Article 5(B)

	  	  	  
	
(J)

	
Common Area Rent:

	
As provided in Article 8(D).

	  	  	  
	
(K)

	
Percentage Rent Rate:

	
N/A

	  	  	  
	
(L)

	
Security Deposit:

	
$20,000.00 (see Article 6).

	  	  	  
	
(M)

	
Permitted Use:

	
A banking institution and any related activities permitted for a Maryland chartered commercial bank so long as such other activities do not conflict with any then existing tenant’s exclusive use provision at the time such other activities are offered.

  

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(N)

	
Landlord’s Notice Address:

See Article 29

	
3333 NEW HYDE PARK ROAD

SUITE 100

P.O. BOX 5020

NEW Hyde Park, New York 11042-0020

	  	  	  
	
(O)

	
Tenant’s Notice Address:

	
HOWARD BANK

13975 ROVER MILL ROAD

WEST FRIENDSHIP, MD 21794

	
(O-1)

	
Tenant’s Bank Account:

	  	  
	  	
See Article 3(A)

	
Name of Bank:

	
    

	  	  	
Account Name:

	
    

	  	  	
Account Number:

	
    

	  	  	
Routing Number:

	
    

	  	  	
Bank Address:

	
    

	  	  	  	
    

	
(P)

	
Broker(s):

	
KLNB, INC.

1320 OLD CHAIN BRIDGE ROAD

SUITE 350

McLEAN, VA 22101

ATTN: DIMITRI GEORGELAKOS

	
   

FOR INFORMATION ONLY

	
Tenant’s Telephone No.:

	
    

	  	  
	
Tenant’s Fax No.:

	
    

	  	  
	
Tenant’s Email Address:

	
    

	  	  
	
Tenant’s Business Name:

	
    

	  	  
	
Tenant’s Contact Person:

	
    

	  	  
	
Guarantor(s):

	
Citizens National Bank

517 Main Street

Laurel, MD 20707

The following riders and exhibit(s) are hereby incorporated into this Lease and made a part of this Lease for all purposes:

	
Riders:

	
Rider “A” General Lease Provisions (set forth in Articles 2 through 29).

Rider “B” – Specific Lease Provisions (beginning with Article 30).

  

3

  

	
Exhibit(s):

	
Exhibit “1” – Authorization Agreement for Direct Debit

	  	
Exhibit “A” – Site Plan

	  	
Exhibit “B-1” – Contractor’s Indemnity Agreement

IN WITNESS WHEREOF, the parties hereto have executed this Lease under their respective hands and seals as of the day and year first above written:

	
WITNESS TO LANDLORD:

	
LANDLORD:

	
HRVC, LLC

	  	  
	  	
By:

	
K. Columbia Properties LLC,

	  	  	
Managing Member

	  	
By:

	
Kimco Retail Opportunity

	  	  	
Portfolio, LLC, Member

	  	
By:

	
KIGME, Inc.

	  	  	
Managing Member

	 	 	
By:

	
   

	  	 	  	
Print Name:

	
   

	  	 	  	
Title:

	
   

	  	 	  	
Date Signed:

	
   

	
WITNESS TO TENANT:

	
TENANT:

	
HOWARD BANK

	  	 	
By:

	  
	  	 	  	
Print Name:

	
   

	  	 	  	
Title:

	
   

	  	 	  	
Date Signed:

	
   

	  	 	  	
Fed Tax ID No.:

	
   

  

4

  

FOR TENANT (CORPORATION)

State of   __________________)

)ss.

County of _________________)

On the _____ day of _____ in the year 2004 before me, the undersigned, a Notary Public in and for said State, personally appeared ______________ personally known to me to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his capacity, and that by his/her signature on the instrument, the individual or the person upon behalf of which the individual acted executed the instrument.

	  	
   

	  	
Notary Public

(C)

(D)           Statements.

5.           Taxes.

(A)           “Taxes” shall mean and include: real estate taxes; special and general assessments; water and sewer rents and charges including connection or hookup charges; governmental license and permit fees; charges for public or private easements benefiting the Shopping Center; taxes on other areas made available for the common use or benefit of tenants; and all other governmental impositions and charges (extraordinary as well as ordinary, foreseen and unforeseen) which are either a lien on the Shopping Center or which are charged, levied or assessed on, or imposed in connection with, the use, occupancy or possession of the Shopping Center, and/or which appear as a charge on a tax bill given to Landlord by any official taxing authority; and also: taxes, license fees or other charges measured by the rents receivable by Landlord from the Shopping Center; occupancy taxes, rent taxes or similar taxes; interest on Tax installment payments; and costs, expenses and fees (including attorneys’ and other experts’ fees) incurred by Landlord in contesting and/or negotiating Taxes with the public authorities (regardless of the outcome).  If any method of taxation prevailing on the date of this Lease is altered, so as a substitute for the whole or any part of real estate taxes there is levied or assessed a different kind of tax, the different tax shall be deemed included in “Taxes”.  However, “Taxes” shall not include any inheritance, estate, succession, transfer, gift, franchise or corporation tax, or any net income tax, profit tax or capital tax imposed on Landlord.  A copy of an official tax bill with respect to a governmental tax or assessment shall be conclusive evidence of the amount of a Tax.  If the Leased Premises is located in Indiana, Ohio, Illinois or other jurisdiction wherein taxes are billed or are payable in arrears after they have accrued or become a lien, then the taxes that are payable or become a lien during the calendar year in which the Lease Term is in effect shall be included in the definition of “Taxes” shared in or payable by Tenant according to the provisions of this Article even though the payment thereof relates to a fiscal tax period in whole or in part occurring prior to the commencement of or after the end of the Lease Term.

  

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(B)           Tax Rent.  As additional Rent for each year of this Lease (herein called “Tax Rent”), Tenant shall pay to Landlord, in the manner hereinafter described, the product obtained by multiplying the aggregate amount of all Taxes payable by Landlord for the then-current calendar year (or other fiscal or accounting year selected by Landlord) by a fraction (“Tenant’s Fraction”), the  numerator of which is the Floor Area of the Leased Premises, and the denominator of which is the total square foot ground floor area which is leasable for space (on the first day of the month in question) inside all the buildings of the Shopping Center.  Notwithstanding the foregoing, at Landlord’s option Tenant’s Fraction may be appropriately adjusted with regard to Tax Rent and/or Common Area Rent to exclude from the denominator thereof any land and/or building(s) in the Shopping Center leased to or occupied by third parties with separate tax lots or parcels for which they directly or indirectly pay taxes and/or who are responsible for maintenance of portions of the Common Areas; provided that in such event the Taxes or Common Area expenses paid by such third parties shall also be excluded in the computation of Taxes and/or Yearly Common Area Costs.  On the first day of each month in advance, Tenant shall pay to Landlord one-twelfth (1/12th) of Tenant’s annual share of Tax Rent, based on Landlord’s estimates.  If after the end of a calendar year (or other accounting period used by Landlord) the total of the monthly payments by Tenant for the year has exceeded or is less than the annual Tax Rent actually due, then an adjustment shall be made with appropriate payments to or repayment by Landlord.  If the amount of any Taxes payable during the current year shall not yet have been billed by the taxing authority, the monthly Tax Rent then payable shall be based on the amount of the corresponding Taxes for the immediately preceding Tax year, subject to immediate adjustment (and payment of the adjusted amount by Tenant) when such Taxes are billed or determined.

(C)           Other Taxes.  In addition to Tax Rent, Tenant shall pay in the entirety: all taxes attributable to its signs, personal property and leasehold interests; all taxes allocable or attributable to any improvements made by Tenant to the Leased Premises; all occupancy taxes or other taxes on its right to occupy the Leased Premises; all taxes on its Rent (including sales taxes on rents if the Leased Premises is in Florida or in any other jurisdiction imposing a tax on rents); and other taxes imposed on tenants generally.

6.           Security Deposit.  On Tenants execution of this Lease, Tenant shall pay the Security Deposit as security for the payment of Rent and Tenant’s performance and observance of this Lease.  No interest shall accrue or be paid to Tenant with respect to such Security Deposit, and Landlord shall have the right to commingle such Security Deposit with any other funds under Landlord’s control.  If Tenant defaults under this Lease, or defaults under any other lease or agreement between Tenant and Landlord or an affiliate of Landlord, Landlord may, without prejudice to any other available remedy, apply the Security Deposit towards curing the default and compensating Landlord for loss or damage arising from the default.  At the expiration of this Lease, if Tenant is not in default or otherwise liable to Landlord, the unapplied balance of the Security Deposit shall be returned to Tenant.  Tenant expressly agrees that Tenant shall have no right to apply any portion of the Security Deposit against any of Tenant’s obligations to pay any Rent hereunder and, if Tenant shall seek to so apply such Security Deposit, Tenant shall on demand pay liquidated damages to Landlord in a sum equal to two (2) times the amount of any such unpaid Rent.  If at any time Landlord applies part or all of the Security Deposit, Tenant shall pay to Landlord the amount so applied, thereby increasing the amount of the Security Deposit, so Landlord shall have on hand the full original Security Deposit at all times.  If Landlord transfers this Lease and Security Deposit to a transferee, the transferor shall be released from liability with respect to the Security Deposit or its return to Tenant; Tenant shall look only to such transferee with respect thereto.  Tenant shall not mortgage, assign (except in connection with an assignment of this Lease by Tenant which is otherwise expressly permitted by the terms of this Lease) or encumber its interest in the Security Deposit, and any attempt to do so shall be void.  On any transfer by Tenant of its interest in this Lease, the Security Deposit shall be deemed transferred to the assignee.  In case of Tenants bankruptcy, reorganization or other similar proceeding, the Security Deposit shall be deemed applied first to payment of unpaid Rent for periods prior to institution of the proceedings.

  

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7.           Construction; Condition of Premises; Ownership of Installations.  If Tenant enters the Leased Premises before the Lease Commencement Date (but Tenant shall have no such right except as may be expressly provided herein or with Landlord’s prior written consent), Tenant shall pay for all utilities used by it and defend, indemnify and hold Landlord harmless from all liability which arises out of Tenant’s possession, use or occupancy during that period, and provide Landlord with the insurance referred to in Article 11(B), and the indemnity in Article 11(A) shall apply and all other provisions of this Lease shall apply except (unless otherwise stated herein) the obligation to pay Rent.  Promptly following the Lease Commencement Date, Tenant shall (subject to the provisions of Article 10(E) and all other relevant provisions of this Lease) fixture and do all other work, including installation of an attractive exterior lighted sign above its entrance (see Article 10 (D)), in order to prepare the Leased Premises for business operation, and complete its work, fully staff and stock its store, and open for business promptly.  Prior to operating its business, Tenant shall obtain a permanent certificate of occupancy (or local equivalent) for the Leased Premises from the local government agency having jurisdiction, and obtain final lien waivers for all work performed by or on behalf of Tenant and forward copies to Landlord.  Tenant shall, at its sole expense, in doing any work, making any installations, or in using, occupying or conducting business at the Leased Premises, comply with all present and future laws, regulations, building codes and/or fire codes applicable to the Leased Premises or to Tenant’s use or occupancy or business operations, including those that relate to installation, maintenance, upgrading, repair or replacement of sprinkler systems, and Tenant shall defend, indemnify and hold Landlord harmless from all losses, damages, claims, liabilities, costs and expenses (including legal fees) arising out of any failure to do so.  Tenant acknowledges Landlord has made no representations, and that Tenant has conducted all inspections it deems necessary, and Tenant accepts the Leased Premises and all the equipment, apparatus, plumbing, heating, air conditioning, electric, water, waste disposal and other systems relating thereto and the parking lot and the other Common Area of the Shopping Center “AS IS”.  Landlord is not obligated with respect to either the Leased Premises or the Shopping Center to make any improvements, changes, installations, do any work, make any alterations, repairs or replacements, clean out the Leased Premises, obtain any permits, licenses or governmental approvals, or spend any money either to put Tenant in possession or to permit Tenant to open for business, unless Landlord has so agreed expressly in this Lease.  All work other than that to be performed by Landlord, if any, shall be accomplished by Tenant.  Unless specifically stated otherwise in this Lease, it is deemed that Landlord shall have tendered possession of the Leased Premises to Tenant immediately on the signing of this Lease by both Landlord and Tenant.  Except for signs, merchandise counters or other easily removable similar trade fixtures installed by Tenant at Tenants expense, all alterations, decorations, additions and improvements made by Tenant to the Leased Premises and including all heating and air-conditioning units, equipment and apparatus at the Leased Premises and other fixtures such as ceiling tiles and grids, lighting fixtures, electric panel boxes, plumbing, boilers, floor and wall coverings, alarm systems, lights, toilet fixtures, partitions, doors and utilities shall be deemed attached to the freehold and be Landlord’s property.

  

7

  

8.           Common Area.

(A)           Subject to subparagraph (C) below, Tenant and its employees, agents, and customers shall have the non-exclusive right to the use or benefit of the Common Area to the extent and in the manner reasonably designated by Landlord.  Except as otherwise specified in this Lease, Landlord agrees to make all necessary repairs and maintenance to the Common Area to keep same in good condition, including without limitation sweeping and removal of snow, ice and refuse, and landscaping maintenance.

(B)           “Common Area” is hereby defined as the areas, equipment and facilities of the Shopping Center or of any other land or property made available by Landlord for the safety, benefit or convenience of tenants or their employees, subtenants, customers or invitees, including (as illustrations and not in limitation): parking areas, driveways, truck serviceways, sidewalks and curbs; entrances and exits from the adjacent streets; traffic lights, traffic islands, landscaped areas; meter rooms outside individual stores; fencing; lighting facilities; sprinkler system serving landscaped areas or buildings; sewage system outside tenants’ stores; roofs, gutters and downspouts and the exterior of outside walls (excluding storefronts) of buildings (without implying Tenant may use the roofs or outside walls); directional or safety signs; Landlords pylon signs (but not individual tenant panels) and sign panels which identify the Shopping Center.  Tenant acknowledges that the Common Area may also be used by occupants and/or invitees of properties adjoining the Shopping Center, whether or not owned, leased or managed by Landlord.

(C)           Landlord reserves the right at any time and from time to time to change or reduce or add to the Common Area.  Common Area shall be under the exclusive control and management of Landlord (including the hours that parking area lights are kept on).  Tenant and its employees shall park their vehicles only in areas Landlord designates for employee parking; if after one (1) violation notice is given to Tenant a violation recurs by Tenant or its employees parking vehicles in other than the employee parking areas, Landlord shall have the right to tow such vehicle at Tenant’s expense and/or levy an assessment against Tenant of Forty ($40.00) Dollars per day for each vehicle.  Tenant shall not permit trucks or delivery vehicles used by it to be parked in the Common Area except where Landlord permits.  Landlord may impose parking charges by meter or otherwise, and may close parts of the Common Area for such time necessary in its opinion to prevent a dedication or accrual of rights in other persons, or to discourage non-customer parking.  Landlord shall not be obligated (although it may do so at its option) to keep the Common Area illuminated to any extent after 10:00 P.M.  or on any Sunday or legal holiday.

  

8

  

                (D)           Common Area Rent.  In the manner hereinafter described, Tenant shall pay its share of “Yearly Common Area Costs” (hereinafter defined).  On the first day of each month in advance, Tenant shall pay to Landlord, as additional Rent (herein called “Common Area Rent”) one-twelfth (1/12th) of Tenant’s annual share of Landlord’s estimated Yearly Common Area Costs, based on Landlord’s estimates.  Tenant’s annual share shall be determined by multiplying the Yearly Common Area Costs by Tenant’s Fraction (defined in Article 5(B)).  For a portion of a calendar month at the beginning of the Lease Term, Tenant’s Common Area Rent shall be prorated for that month.

  (E)           “Yearly Common Area Costs” shall mean and include all costs and expenses incurred by Landlord during each twelve (12) month period selected by Landlord for repair, replacement, painting, maintenance, protection and operation of the Common Area and for insurance carried by Landlord with respect to the Shopping Center, and insurance-related costs and expenses, including (by way of examples and not in limitation) costs or expenses relating to: parking areas, sidewalks and the like; storm water and sewage drainage and sanitary control; removal of snow, ice and refuse (including use of trash compactors); gardening and landscaping; roof repairs; insuring buildings and improvements and insuring for bodily injury and property damage liability, including but not limited to insurance premiums, administrative costs, fees, losses within deductibles and/or self-insured retentions for All-Risk Property Insurance including Flood and Earthquake, Boiler & Machinery, Loss of Rents, Crime, General and Umbrella liability, Workers Compensation, Automobile, and such other coverages and limits as Landlord in its sole discretion deems reasonable in the circumstances, all at the fair premiums (which may be at the manual rates applicable to the Shopping Center), as if the Shopping Center was the only property owned by Landlord (but notwithstanding the foregoing, such insurance may be obtained through blanket policies as long as Landlord makes a reasonable allocation of premiums to the Shopping Center, which allocation may be based, inter alia, upon a uniform per square foot rate for all or substantially all property owned by Landlord and affiliates); controlling or eliminating puddling or flooding; lighting (including electric cost and maintenance, repair or replacement of fixtures, poles and replacement of bulbs); depreciation of property owned or rental paid for maintenance machinery and equipment; taxes or fees payable by Landlord for any pylons, equipment or other facilities; costs of security patrols, directing parking and policing the Common Areas, compensation to personnel engaged in managing the Common Areas and implementing services related thereto; plus fifteen (15%) percent of the Yearly Common Area Costs as a fixed administrative fee for Landlord.  Landlord may cause any services such as sweeping, snow removal, repairs, etc. to be provided by independent contractors, and the fees paid shall be part of Yearly Common Area Costs.  Notwithstanding the foregoing, for the purposes of computing Tenant’s Common Area Rent, those items considered to be capital expenditures under Generally Accepted Accounting Principles (“GAAP”) shall be amortized over the useful GAAP life of the item, and the annual amortized costs shall be included in Yearly Common Area Costs when determining Tenant’s Common Area Rent.

  (F)           After the end of each accounting period, Landlord shall furnish a statement of the actual Yearly Common Area Costs.  If the statement shows that the aggregate of Tenant’s monthly estimates paid by Tenant during such year was less than Tenant’s Common Area Rent payable, Tenant shall pay the balance due to Landlord within ten (10) days after receipt of the statement; and if the statement shows that the aggregate paid exceeded the Common Area Rent payable, Landlord shall either refund the excess or credit Tenant’s next accruing Common Area Rent.  Tenant’s failure to give Landlord written notice of any objection to the statement within ninety (90) days after the statement is sent shall constitute a waiver of any objection or inquiry Tenant may have about the statement or for any examination of Landlord’s records.  Tenant acknowledges Landlord has not made any warranty, agreement or representation of any kind as to the actual dollar amount of Yearly Common Area Costs or Tenant’s dollar share thereof.

  

9

  

9.           Use of Premises.

(A)           Tenant agrees that the Leased Premises will be used and occupied in accordance with the terms of this Lease, and only for the  Permitted Use, and for no other use or purpose.  Without limitation of the foregoing, no sale of dispensing of lottery tickets other gaming tickets, liquor, wine or beer shall be permitted.

 

(C)           Tenant’s Business Operations.  Tenant shall keep the Leased Premises open and operated continuously for business not less than 40 hours per week, excluding closures for banking holidays.  Tenant will continuously operate its business therein with diligence, fully staffed with personnel at the Leased Premises.  Tenant agrees for its part: no auction, fire, bankruptcy, going out of business or similar sale will be conducted or advertised; no merchandise will be kept, displayed or sold or business solicited in the Shopping Center outside the Leased Premises; no nuisance will be permitted; nothing shall be done which is unlawful, offensive or contrary to any law, ordinance, regulation or requirement of any public authority, or which may be injurious to or adversely affect the quality of the Leased Premises or the Shopping Center; no part of the Leased Premises (especially the electric and plumbing systems, the floor and walls) will be overloaded, damaged or defaced; no holes will be drilled in the stone or brickwork or in concrete; no emission of any objectionable odors, sounds or vibrations will be permitted.  Tenant shall procure all licenses and permits required for the use or occupancy of the Leased Premises and the business being conducted therein; the storefront, show windows and signs will be repaired, kept clean, in good condition and lighted; except for cash and other negotiable instruments all merchandise and other property will be delivered to or removed from the Leased Premises only by the rear entrance; all garbage, waste and refuse will be kept stored temporarily inside the Leased Premises and then regularly removed at Tenant’s expense and, if Landlord opts, only by a contractor designated by Landlord, provided its price is competitive.  Tenant will comply with the requirements of law and any requests of governmental agencies or Landlord in its recycling program, if any.  Tenant will cooperate with Landlord and other tenants of the Shopping Center in promotions and advertising, and will become a dues-paying member of the merchants’ association (or similar organization) and will participate and pay its pro-rata share (based on Tenant’s Fraction as defined in Article 5(B)) of all expenses incurred by the marketing or promotion fund program now or hereafter established by Landlord; Tenant’s share of which is presently estimated at $1,920.00 per annum, payable in equal monthly installments in the amount of $160.00 simultaneously with Tenant’s payment of Base Rent.  Tenant shall comply with all environmental statutes, regulations or ordinances now or hereinafter enacted by government authorities.  Tenant shall not permit the release, emission, disposal, dumping or storage of hazardous wastes (as defined in any such laws) into the septic tanks, sewers, or other waste disposal facilities of the Shopping Center or anywhere in the Shopping Center, or permit same to be brought into the Leased Premises at any time, and the provisions of this sentence shall survive the expiration of the Lease Term.  Tenant shall keep the Leased Premises free of rodents, vermin, insects and other pests, and provide regular exterminator services at its own expense, and, if Landlord opts, only by an exterminator designated by Landlord provided its price is competitive.  Tenant agrees that nothing will be done or omitted which may either prevent the obtaining by Landlord or other tenants of insurance on any part of the Shopping Center or on any personal property thereon, or which may make void or voidable any such insurance, or which may create any extra premiums for any insurance carried by Landlord or other tenants.  Tenant will comply with all requirements and recommendations of Landlord’s and Tenant’s insurance companies and any rating bureau or similar organization, including maintaining and servicing fire extinguishers.

  

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 (D)           Tenant agrees to:  not sell goods, solicit business or distribute advertising matter in the Common Areas; not permit preparation of food or any cooking, baking or frying in the Leased Premises.  Tenant shall keep the sidewalks, curbs and ramps (if any) adjacent to the Leased Premises (and also all delivery areas, ramps, loading areas and docks used exclusively by Tenant) in good and safe condition and free from snow, ice, and rubbish.  Tenant will not make or suffer any waste of the Leased Premises.  Landlord shall not be liable for the act of any other tenant or person who may cause damage to or who may interfere with Tenant’s use or occupancy of the Leased Premises or Tenant’s business.

10.           (A)          Utilities.  Tenant shall provide and pay for its own heat, air conditioning, water, gas, electricity, sewer, sprinklers and other utilities, including application deposits, and installation charges for meters and for consumption or use of utilities.  Tenant shall pay its proportionate share (based on relative square feet size and use of premises) of sewer charges, if any.  Tenant shall keep sufficient heat to prevent the pipes from freezing.  If Tenant receives utilities through a meter which supplies utilities to other tenants, Tenant will pay to Landlord Tenant’s proportionate share (based on relative square feet size and use of premises) of the total meter charges.  If Tenant receives water from Landlord’s well or other sources’ made available by Landlord (instead of from an independent water company), Tenant shall pay for the water, and all costs and expenses for the maintenance, repair, replacement and installation of tanks, electric costs, machinery, apparatus and facilities shall be included in Yearly Common Area Costs.  See Article 32 re Utility Deregulation.

 (B)          Landlord’s Repairs.  Weather permitting and subject to Article 25, Landlord shall, within thirty (30) days after receiving written notice from Tenant, commence to make repairs, if necessary, to the foundation, the roof, the exterior of the perimeter demising walls, and the load-bearing structural columns and beams in the Leased Premises, except that if those repairs or replacements arise from (i) repairs, installations, alterations, or improvements by or for Tenant or anyone claiming under Tenant, or (ii) the fault or misuse of Tenant or anyone claiming under Tenant, or (iii) default under the Lease by Tenant, then Tenant shall make such repairs or replacements or, if Landlord elects, Landlord may perform the work for Tenants account and Tenant shall reimburse Landlord for expenses incurred.  In determining Landlord’s repair obligations, the expression “roof” does not include rooftop heating or air conditioning units or other structures or apparatus on the roof serving the Leased Premises, and “exterior of walls” does not include the storefront, any glass, windows, window sashes or frames, doors, door frames or hardware, trim or closure devices, or any part of the interior side of perimeter walls, all of which shall be Tenant’s duty to repair, maintain, and replace.  In any event, Landlord’s obligation shall be only to make the repairs for which it is hereby obligated, and Landlord shall not be liable for loss of business, loss of sales, loss of profits or for any consequential damages or for damage to or loss of personal property, fixtures or any interior elements of the Leased Premises which are Tenants responsibility to maintain or repair.

  

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(C)           Tenant’s Repairs.  Subject to Article 10(B), Tenant shall maintain and make all repairs and alterations of every kind with respect to the Leased Premises (including necessary replacements) to keep it in good condition (including the storefront, glass, signs, ceilings, interior walls, interior side of perimeter walls, floor, floor coverings, plumbing, electric, heating and air conditioning, sprinklers and lighting fixtures), and do all required by any laws, ordinances or requirements of public authorities.  From the point they serve the Leased Premises exclusively, whether located inside or outside, Tenant shall make all repairs, replacements and alterations necessary to maintain in good condition all lines, apparatus, and equipment relating to utilities (including heating, air conditioning, water, gas, electricity and sewerage).  Tenant shall maintain a service contract for the regular seasonal maintenance of the heating, ventilating and air conditioning (“HVAC”) system servicing the Leased Premises with a reputable HVAC contractor at all times during the Lease.  Additionally, if any air conditioning or heating equipment (or other utility equipment) is damaged by vandalism, fire, lightning or other casualty, Tenant shall repair (and if necessary, replace) the equipment, notwithstanding Article 13.  Tenant’s sole right of recovery shall be against Tenant’s insurers for loss or damage to stock, furniture and fixtures, equipment, improvements and betterments.

(D)           Signs; Painting; Displays.  No sign, other advertising or any other thing may be placed by Tenant or anyone claiming under Tenant on the exterior of the Leased Premises or on the interior part of either windows or doors without Landlord’s prior written approval, which shall not be unreasonably withheld or delayed.  Tenant shall not utilize flashing, painted, neon or moving signs or lights.  Tenant shall not paint, decorate or mark any part of the exterior.  Tenant shall install an exterior lighted sign or signs in compliance with Landlord’s specifications and keep the sign(s) (which must first be approved by Landlord in writing) lit to at least 10:00 P.M.  or to such later hour as requested by Landlord, on all days of the year.  Notwithstanding the foregoing, Tenant shall be permitted to install standard banking signage on the interior side of its store windows so long as Tenant continually complies with the following conditions: 1) the signs are professionally prepared in  an attractive manner (no free style lettering); 2) the signs do not occupy more than twenty percent (20%) of Tenant’s total front window area; 3) the signs do not target any other tenant in the Shopping Center or their product lines; and 4) the signs comply with all applicable codes and easements, if any,  and Tenant obtains all necessary permits and approvals therefore prior to installing any such signage.  Landlord may require Tenant to remove any signs that, in Landlord’s reasonable opinion, do not comply with the above conditions, and failure to so comply or any future installation of non-compliant signs shall be a default under the Lease.

  

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               (E)           Alterations.  No alterations, installations, additions or improvements will be made to the Leased Premises by Tenant without Landlord’s prior written approval.  Notwithstanding the foregoing, Landlord will not unreasonably withhold its consent to Tenant’s request to make interior non-structural alterations to the Leased Premises which do not affect any mechanical or utility systems located in, or serving, the Leased Premises.  Tenant shall deliver to Landlord “as-built” plans  or drawings of such alterations promptly after the alterations have been completed.  All installations, alterations, additions and improvements, whether by Landlord, Tenant or any other person (except only sign panels and movable trade fixtures installed at Tenant’s cost) shall become, when made, a part of Landlord’s real estate, and on termination of the Lease Term shall be surrendered with the Leased Premises in good condition.  Tenant shall not have the right to remove sign boxes.  Tenant shall defend, indemnify and save Landlord harmless from and against all claims for injury, loss or damage to person or property caused by or resulting from doing any work.  For any work that involves penetration of the roof surface or alterations to the sprinkler system, Tenant shall employ Landlord’s contractor.  The maintenance of any portion of the roof affected by Tenant’s work will be Tenant’s responsibility, including repair of areas of the Shopping Center that might be affected due to water penetration through Tenant’s roof work.

(F)           Permits; Liens.  All repairs, installations, alterations, improvements and removals by Tenant will be done in a good and workmanlike manner, only after Tenant has procured all permits.  Tenant shall comply with all laws, ordinances and regulations of public authorities and with all Landlord’s and Tenant’s insurance requirements and with insurance inspection or rating bureaus; and the work shall not adversely affect the structure of the building.  Tenant shall pay promptly when due all charges for labor and materials in connection with any work done by or for Tenant or anyone claiming under Tenant.  Tenant shall remove, by payment, bonding or otherwise, within ten (10) days after notice, all liens placed on the public record or in any way against Landlord’s interest or the Shopping Center resulting from any act of Tenant or from labor or materials being alleged to have been supplied at the request of Tenant or anyone claiming under Tenant, failing which Landlord may remove such lien and collect all expenses incurred from Tenant as additional Rent.  Tenant shall protect, defend, save harmless and indemnify Landlord and any fee owner of the Shopping Center from and against all losses, claims, liabilities, injuries, expenses (including legal fees), lawsuits and damages arising out of any lien described above.

11.          Indemnity; Insurance.

(A)           Tenant shall protect, defend, save harmless and indemnify Landlord and any fee owner of the Shopping Center from and against all losses, claims, liabilities, injuries, expenses (including legal fees), lawsuits and damages of whatever nature either (i) claimed to have been caused by or resulted from any act, omission or negligence of Tenant or its subtenants, concessionaires, employees, contractors and invitees no matter where occurring, or (ii) occurring in the Leased Premises except if caused by Landlord’s negligence.  Landlord shall not be liable under any circumstances for any injury or any loss or damage to or interference with any merchandise, equipment, fixtures, furniture, furnishings or other personal property or the business operations of Tenant or anyone in the Leased Premises occasioned by (i) the act or omission of persons occupying other premises, or (ii) any defect, latent or otherwise, in any building or the equipment, machinery, utilities, or apparatus, or (iii) any breakage or leakage of the roof, walls, floor, pipes or equipment, or (iv) any backing up, seepage or overflow of water or sewerage, or (v) flood, rain, snowfall or other elements or Acts of God.  Notwithstanding the foregoing to the contrary but subject to the provisions of Articles 17 and 23, Landlord shall repair, or compensate Tenant for, damage to Tenant’s personal property that is not covered by insurance either carried by Tenant or required under Article 11(B) of this Lease, if the damage resulted from Landlord’s failure to repair (within a reasonable time after written notice of the problem from Tenant) a defect it is required to repair under this Lease.  In no  event shall Landlord be liable for loss of business or consequential damages.  If Tenant makes shopping carts available, the foregoing indemnity provisions shall apply to claims relating to the shopping carts; and Tenant shall remove all shopping carts from the Common Area, as often as necessary, so that the Common Area shall remain reasonably free of carts.  All shopping carts shall be stored inside the Leased Premises.

  

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(B)           Tenant’s Insurance.  Tenant shall maintain with financially responsible insurance companies with a Best Rating of not less than A-VIII licensed to do business in the state where the Leased Premises is located: (i) a commercial general liability insurance policy with respect to the Leased Premises and its appurtenances (including signs) naming Landlord as an additional insured with a limit of not less than One Million ($1,000,000) Dollars; (ii) an umbrella liability insurance policy with a limit of not less than Two Million ($2,000,000)  Dollars, naming Landlord as an additional insured; (iii) an insurance policy to cover heating and air-conditioning units against damage for one hundred (100%) percent replacement cost; (iv) an all-risk property insurance policy insuring all merchandise, leasehold improvements, furniture, fixtures and other personal property, all at their replacement cost; and (v) business interruption insurance.  Tenant shall deliver these insurance policies or certificates thereof, satisfactory to Landlord, issued by the insurance company to Landlord on the signing of this Lease and thereafter at least thirty (30) days prior to each expiring policy.  Tenants failure to deliver the policies or certificates shall constitute a default.  All policies of insurance required of Tenant shall have terms of not less than one (1) year.

12.         Access to Premises.  Landlord shall have the right (but shall not be obligated) to enter the Leased Premises upon reasonable notice (and in case of emergency without notice) to inspect or to show the Leased Premises to prospective purchasers, mortgagees or tenants, or to make any repairs, alterations, or improvements, including the installation or removal of pipes, wires and other conduits serving other parts of the Shopping Center.  Commencing six (6) months prior to expiration of the Lease Term, Landlord may maintain “For Rent” signs on the front or any other part of the exterior of the Leased Premises.  Landlord further reserves to itself the exclusive right at any time to use the roof, foundation or exterior walls (other than Tenant’s storefront) for placing of signs or equipment or for purpose of additional construction.

13.         Fire or Other Casualty.

(A)           Tenant shall give prompt notice to Landlord in case of fire or other damage to the Leased Premises.

  

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                (B)           If (i) the Shopping Center buildings are damaged to the extent of more than twenty-five (25%) percent of the replacement cost, or (ii) the Leased Premises are damaged to the extent of more than fifty (50%) percent of the replacement cost, or (iii) the Leased Premises are damaged and Tenant is not operating for business as required by Article 9(C) at the time the damage occurs, or (iv) the Leased Premises are damaged and less than one (1) year of the Lease Term remains unexpired at the time of the fire or other casualty; then in any of such events, Landlord may terminate this Lease by notice to.  Tenant within ninety (90) days after such event, and on the date specified in the notice this Lease shall terminate.  If the damage renders the Leased Premises wholly or partially untenantable, there shall be a fair and equitable proportionate abatement of all Rent during that period.  Unless this Lease is terminated as aforesaid, this Lease shall remain in effect.

(C)           If this Lease is not terminated by Landlord, this Lease shall continue in full force and effect (Tenant waives any right conferred by any applicable law to terminate this Lease based on the damage), and Tenant shall, immediately on notice from Landlord, remove its fixtures, other property and debris as required by Landlord, and then Landlord shall rebuild the Leased Premises to the condition existing when the Leased Premises was originally delivered to Tenant; and on completion thereof Tenant shall restore Tenant’s property and promptly reopen for business.  Tenant shall use the proceeds of any recovery on Tenant’s insurance policies for restoration of improvements made by Tenant to the Leased Premises, and for restoration and/or replacement of Tenant’s equipment, trade fixtures and inventory, and to cover any business interruption loss.

(D)           The “replacement cost” as used in (B) above shall be determined by a reputable contractor selected by Landlord.

14.         Eminent Domain.

(A)           If the whole of the Leased Premises are taken in connection with eminent domain, the Lease Term shall expire when Landlord shall be divested of its title, and Rent shall be apportioned as of that date.

(B)           If only part of the Leased Premises is taken in connection with eminent domain, and the ground floor area of the Leased Premises is reduced by more than twenty (20%) percent and the part remaining shall not be reasonably adequate for the operation of Tenant’s business, Landlord or Tenant may terminate this Lease by giving the other notice within thirty (30) days after such taking, effective as of the date possession of the taken part shall be required for public use; and Rent shall be apportioned as of that date.

(C)           Tenant shall not have any claim for an award based on the loss of its leasehold estate.  Landlord shall be entitled to all damages in connection with eminent domain.  Tenant shall execute any instrument required by Landlord for the recovery of damages and to remit to Landlord any damage proceeds recovered, except, however, Tenant may recover for itself damages for movable trade fixtures which were installed by Tenant, provided Landlord’s award is not reduced thereby.

  

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15.         Defaults and Remedies.

(A)           Any one of the following shall be a default by Tenant: (1) if Tenant fails to pay Rent, Security Deposit or other money, or to provide a certificate of insurance or to provide an estoppel certificate as required by Article 27 within five (5) days of when due, or (2) if Tenant fails to perform or observe any agreement or condition on its part to be performed or observed, other than the defaults mentioned in the preceding clause (1) or in clauses (3) through (8) below, or if Tenant defaults under any other lease or agreement between Tenant and Landlord or an affiliate of Landlord, or (3) if Tenant’s leasehold interest is levied on, attached or taken by any process of law, or (4) if Tenant makes an assignment of its property for the benefit of creditors, or (5) if any bankruptcy, insolvency or reorganization proceeding or arrangement with creditors (whether through court or by proposed composition with creditors) is commenced by or against Tenant, or (6) if a receiver or trustee is appointed for any of Tenant’s property, or (7) if this Lease is transferred to or devolves on, or the Leased Premises is occupied by, anyone other than Tenant except if specifically permitted by this Lease, or (8) if Tenant closes the Leased Premises or ceases doing business at the Leased Premises.

(B)           If (i) a default described in subsection 15(A)(1) or in subsections 15(A)(3) through (7) inclusive occurs, or (ii) a default described in subsections 15(A)(2) or 15(A)(8) occurs and continues for more than fifteen (15) days after written notice from Landlord, then in any of such cases Landlord or its agent shall have the right to enter the Leased Premises and dispossess Tenant and all other occupants and their property by legal proceedings, use of reasonable force (under the condition allowed in Article 15(F) hereof) or otherwise.  Tenant hereby waives any claim it might have for trespass or conversion or other damages if Landlord exercises such remedies. Landlord may exercise the remedies just mentioned without terminating this Lease.  As an independent cumulative right to obtaining possession without terminating this Lease, Landlord shall have the right to terminate this Lease by giving Tenant written notice specifying the day of termination (which shall be not less than five (5) days from the date of the notice), on which date this Lease and all of Tenant’s rights will cease as a conditional limitation, as if that date specified in Landlord’s notice was the original date for expiration of this Lease; but in all cases Tenant shall remain liable as hereinafter provided.

(C)           Notwithstanding any re-entry, dispossession or termination of the Lease by Landlord, Tenant will remain liable for damages to Landlord in an amount equal to the aggregate of all Rents and other charges required to be paid up to the time of such re-entry, dispossession or termination, and for Landlord’s damages arising out of the failure of Tenant to observe and perform Tenant’s covenants and, in addition, for each month of the period which would otherwise have constituted the balance of the Lease Term, Tenant shall pay any deficiency between the monthly installment of Base Rent plus the Tax Rent, Common Area Rent and all other Rent that would have been payable, less the net amount of the rents actually collected by Landlord from a new tenant, if any.  Tenant will not be entitled to any surplus.  Furthermore, Tenant will be liable to Landlord for all the expenses Landlord incurs for: legal fees related to obtaining possession and making a new lease with another tenant; brokerage commissions in obtaining another tenant; and expenses incurred in putting the Leased Premises in good order and preparing for re-rental (together herein referred to as “Reletting Costs”).  In addition, Landlord may relet the Leased Premises, or any part thereof, for a term which may be less or more than the period which would have constituted the balance of the Lease Term and may grant reasonable concessions or free rent to a new tenant.  Landlord’s failure to relet the Leased Premises to a new tenant shall not release or affect Tenant’s liability; and Landlord shall not be liable for failure to relet, or for failure to collect rent under such reletting.

  

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Notwithstanding anything contained in Article 15 to the contrary, in the event  Tenant’s default and removal from the Leased Premises, Landlord will make reasonable efforts to mitigate its damages as may be required by, and in accordance with, applicable law and ii accordance with Landlord’s usual business practices.  However, Landlord shall not be obligated to lease the Leased Premises to a tenant for a rent that is less than prevailing market rates or to a tenant whose use, reputation, experience, or financial status Landlord, in its sole judgment, deem undesirable, or to re-let the Leased Premises before leasing other stores Landlord may have available Nothing contained herein is intended to modify any of Tenant’s obligations or Landlord’s remedies under the Lease.

(D)           In any case where Landlord shall have the right to hold Tenant liable monthly, Landlord may elect to declare all the aggregate Rent for the remaining balance of the Lease Term, as well as all accrued Rent, to be immediately due and payable, and to recover immediately against Tenant all such Rent (for loss of a bargain and not as a penalty).

(E)           In the event of a breach or threatened breach of the Lease by Tenant, Landlord shall have the right of injunction and the right to invoke any remedy allowed at law or in equity Mention of any particular remedy shall not preclude Landlord from any other remedy in law or in equity.

(F)           Tenant waives service of notice of intention to re-enter or institute legal proceedings to that end.  Tenant waives any rights of redemption as to the Leased Premises granted by any present or future laws.  The words “re-enter” and “re-entry” are not restricted to their technical legal meaning.  Notwithstanding the foregoing, Landlord may use force to dispossess Tenant only in the following situations: (i) it is pursuant to law or a court order, judgment or decree; or (ii) Tenant has not been operating its business at the Leased Premises open to the public as required by Article 9(C) of this Lease for more than seven (7) business days.

(G)           Landlord and Tenant mutually agree that they hereby waive trial by jury in any action, proceeding or counterclaim brought by either against the other as to any matters arising out of or in any way connected with this Lease, or their relationship as Landlord and Tenant, or Tenant’s use or occupancy.  Tenant agrees that no counterclaim or setoff will be interposed in any action by Landlord based on non-payment of Rent, even if such counterclaim or setoff is based on Landlord’s alleged breach of a duty to repair or alleged breach of quiet enjoyment, or any other allegation.

16.         Subordination.

(A)           This Lease is and shall be subject and subordinate to (i) all ground or underlying leases and all mortgages or other security instruments now or hereafter affecting such leases, and (ii) all mortgages or other security instruments now or hereafter affecting the fee title of the Shopping Center, and (iii) all renewals, modifications, consolidations, replacements and extensions of any such ground or underlying leases and mortgages.  This clause shall be self-operative and no further instrument of subordination shall be required by any ground or underlying lessee or by an mortgagee.  In confirmation of such subordination, Tenant agrees to execute promptly any instrument that Landlord may request.  However, at the option of Landlord or such mortgagee or ground lessor of secured party, this Lease shall be paramount to such mortgage or ground or underlying lease or other security instrument.

  

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(B)           If Landlord transfers its interest in the Leased Premises, or proceedings are brought for foreclosure of any such mortgage or in case of sale in lieu thereof, or termination of any such ground or underlying lease, Tenant shall, if requested, attorn to the transferee, mortgagee, ground or underlying lessor and deliver, without charge, instruments acknowledging the attornment.

(C)           Provided Tenant was given notice in writing of the names and addresses to which the notices should be sent, Tenant shall give prompt written notice of any default by Landlord to the holder of all mortgages, ground or underlying leases and security holders if the default is such as to give Tenant a right to (i) terminate this Lease, or (ii) reduce the Rents or any other sums reserved, or (iii) credit or offset any amounts against Rents.  Any mortgagee, ground lessor or security holder shall have the right to cure Landlord’s default within sixty (60) days after receipt of Tenant’s notice; and no such rights or remedies shall be exercised by Tenant until the expiration of said sixty (60) days (or such additional time reasonably required to cure such default).

17.         Waiver of Subrogation.  Landlord and Tenant hereby release the other and all other persons claiming under it from any and all liability for loss or damage caused by any casualty, even if the casualty is brought about by the fault or negligence of the other or of any persons claiming under the other.  Tenant and Landlord will cause their respective insurance companies to endorse their respective insurance policies to permit a waiver of subrogation.

18.         ASSIGNMENT OR SUBLETTING.  Tenant shall not assign, mortgage, pledge, or otherwise transfer or encumber this Lease or any interest therein, either voluntarily or by operation of law or otherwise, or sublet the whole or any part of the Leased Premises, or permit occupancy by anyone else, without obtaining on each occasion Landlord’s prior written consent, which consent Landlord may deny, regardless of commercial reasonableness.  In any assignment the assignee must assume this Lease in writing on Landlord’s form.  Any request for Landlord’s consent to assignment or subletting shall be accompanied by payment of Landlord’s reasonable administrative and attorneys’ fees relating thereto.  Notwithstanding an assignment or subletting or occupancy of the Leased Premises by anyone other than Tenant, Tenant shall not be released (nor shall any of Tenant’s constituents, partners, or members be released) from any obligations, liabilities or covenants under this Lease and shall continue to remain responsible.  Landlord shall have the right to collect Rent from any assignee, subtenant or other occupant without releasing Tenant or waiving any right against Tenant for its default under this Article and without accepting the payor as a permitted tenant.  Any transfer of (i) any corporate stock of; (ii) any partnership interest in; or (iii) any membership interest in Tenant that is deemed by Federal Banking regulations with jurisdiction over Tenant to constitute a change in control under Federal Banking law, or a merger, consolidation or liquidation of or by Tenant, either voluntarily or by operation of law, shall be deemed an assignment and require Landlord’s consent as stated above.  Under any circumstances, Landlord shall not be liable for any money damages to Tenant or Tenant’s proposed assignee, transferee or subtenant for refusal to consent to any assignment or transfer of this Lease or transfer of Tenant’s corporate stock or sale of Tenants business or for refusal to consent to any subletting; Tenants sole remedy shall be specific performance.

 

  

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19.         Surrender and Holding Over.

(A)           At the expiration or sooner termination of the tenancy hereby created, Tenant shall surrender the Leased Premises in the same condition as the Leased Premises were in upon delivery of possession thereof to Tenant, reasonable wear and tear excepted, and damage by unavoidable casualty excepted to the extent that the same is covered by Landlord’s Property insurance policy, and Tenant shall surrender all keys for the Leased Premises to Landlord and shall inform Landlord of all combinations on locks, safes and vaults, if any, in the Leased Premises.  Prior to the expiration or sooner termination of this Lease, Tenant shall remove any and all trade fixtures, equipment and other unattached items which Tenant may have installed, stored or left in the Leased Premises or elsewhere in the Shopping Center, and Tenant shall not remove any plumbing or electrical fixtures or equipment, heating or air conditioning equipment, floor coverings (including but not limited to wall-to-wall carpeting), walls or ceilings, all of which shall be deemed to constitute a part of the freehold and/or leasehold interest of Landlord, nor shall Tenant remove any fixtures or machinery that were furnished or paid for by Landlord (whether initially installed or replaced).  The Leased Premises shall be left in a broom-clean condition.  If Tenant shall fail to remove its trade fixtures or other property as provided in this Article 19, such fixtures and other property not removed by Tenant shall be deemed abandoned by Tenant and at the option of Landlord shall become the property of Landlord, or at Landlord’s option may be removed by Landlord at Tenant’s expense, or placed in storage at Tenant’s expense, or sold or otherwise disposed of, in which event the proceeds of such sale or other disposition shall belong to Landlord.  In the event Tenant does not make any repairs as required by this Article 19(A), Tenant shall be liable for and agrees to pay Landlord’s costs and expenses in making such repairs.  Tenant’s obligations and covenants under this Article 19(A) shall survive the expiration or termination of this Lease.

(B)           If Tenant or anyone claiming under Tenant remains in possession of the Leased Premises after the expiration of the Lease Term, that person shall be a tenant at sufferance; and during such holding over, Base Rent shall be twice the rate which was in effect immediately prior to the Lease Term expiration, which Landlord may collect without admission that Tenant’s estate is more than a tenancy at sufferance, and all the other provisions of this Lease shall apply insofar as the same are applicable to a tenancy at sufferance.

20.         No Waivers by Landlord.  No waiver by Landlord of any breach by Tenant or requirement of obtaining Landlord’s consent shall be deemed a waiver of any other provision of this Lease or any subsequent breach of the same provision or a waiver of any necessity for further consent.  No payment by Tenant or acceptance by Landlord of a lesser amount than due from Tenant shall be deemed to be anything but payment on account, and Tenant’s payment of a lesser amount with a statement that the lesser amount is payment in full shall not be deemed an accord and satisfaction.  Landlord may accept the payment without prejudice to recover the balance due or pursue any other remedy.  Landlord may accept payments even after default by Tenant without prejudice to subsequent or concurrent rights or remedies available to Landlord under this Lease, at law or in equity.  Any acceptance by Landlord of any payment by Tenant after termination or expiration of the Lease Term shall not constitute an acceptance of Rent but rather a payment to Landlord on account of Tenant’s use and occupancy of the Leased Premises.  All rights and remedies which Landlord may have under this Lease, at law or in equity shall be distinct, separate and cumulative and shall not be deemed inconsistent with each other, and any or all of such rights and remedies may be exercised at the same time.

  

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21.          Rules and Regulations.  Tenant shall observe and comply with, and cause its employees, agents, subtenants and concessionaires, and their employees and agents, to observe and comply with all reasonable rules and regulations promulgated by Landlord by notice to Tenant; and

such rules and regulations shall have the same force and effect as if originally contained in this Lease.

22.          Failure of Performance by Tenant.  If Tenant shall default under this Lease, Landlord may, at its election, immediately or at any time thereafter, without waiving any claim for breach of agreement, and without notice to Tenant, cure such default or defaults for the account of Tenant, and the cost to Landlord thereof plus interest at the Default Interest Rate shall be deemed to be additional Rent and payable on demand.  Tenant shall pay all reasonable attorneys’ fees, costs and expenses incurred by Landlord in enforcing the provisions of this Lease, suing to collect Rent or to recover possession of the Leased Premises, whether the lawsuit or other action was commenced by Landlord or by Tenant.

23.          Limitations on Landlord’s Liability.

(A)           “Tenant” includes the persons named expressly as Tenant and its transferees.  successors and assigns.  Except as otherwise provided in the next sentence, the agreements and conditions contained in this Lease shall be binding on and inure to the benefit of the parties hereto and their transferees, legal representatives, successors and assigns.  “Landlord” means only the then-owner of the lessor’s interest in this Lease, and in the event of a transfer by Landlord of its interest in this Lease, the transferor shall be automatically released from all liability and obligations as Landlord subsequent to the transfer.

(B)           Notwithstanding anything to the contrary, Tenant agrees it will look solely to Landlord’s estate in the Shopping Center as the sole asset for collection of any claim, judgment or damages or enforcement of any other judicial process requiring payment of money.  Tenant agrees that no other assets of Landlord shall be subject to levy, execution or other procedures to satisfy Tenant’s rights or remedies.

24.          Miscellaneous Provisions.

(A)           This Lease contains the entire agreement between the parties.  No oral statements or representations or written matter not contained in this Lease shall have any force or effect.  This Lease cannot be modified or terminated orally, but only by a writing signed by Landlord and Tenant, except for a termination expressly permitted by this Lease.  If more than one party executes this Lease as “Tenant”, the liability of all such signatories shall be joint and several.  Neither this Lease nor any memorandum, assignment or memorandum of assignment thereof shall be recorded in any public records without Landlord’s prior written consent.  Any obligation of any person shall be performed at its sole cost and expense unless a contrary intent is expressly stated herein.  Each provision of this Lease shall be valid and enforced to the fullest extent permitted by law.  However, if any provision or the application thereof to any person or circumstance shall to any extent be declared by a court to be invalid, the remainder of this Lease shall not be affected.  If Tenant is not an individual, the person signing this document on behalf of Tenant represents (by such signature) that he or she has been duly authorized by Tenant to execute this document and that such signature creates a binding obligation of Tenant.

  

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(B)           The term “Default Interest Rate” as used in this Lease shall mean Ten (10%) Percent per annum or the maximum interest rate permitted by law, whichever is lower.

 

(D)           The submission of this Lease to Tenant for review or Tenants signature does not constitute a reservation of, or option for, the Leased Premises or a representation that the business terms have been approved by executive officers of Landlord or Landlord’s Board of Directors.  This Lease shall become effective as a lease or agreement only upon mutual execution and delivery.  A lease which is not fully executed and delivered cannot be enforced in any manner and cannot give rise to any rights or remedies.

(E)           The provisions of this Lease shall be construed, in all respects, without reference to any rule or canon requiring or permitting the construction of provisions of documents against the interest of the party responsible for the drafting of the same, it being the intention and agreement of the parties that this Lease be conclusively deemed to be the joint product of both parties and their counsel.  Furthermore, the parties agree that this Lease may be executed with revision markings (so-called “blacklining”) appearing in the execution copy (i.e., deleted text is overstricken and newly-inserted text is underscored or in boldface); such “blacklining” shall not be accorded any significance or taken into account in any way; this Lease shall be construed for all purposes as if all overstricken text were deleted and never included in this Lease and all bold or underscored text were not bold or underscored.

(F)           Quiet Enjoyment.  Landlord covenants that, upon Tenant’s payment of the Rent required hereunder and its performance of all of the terms and conditions of the Lease, Tenants peaceful and quiet enjoyment of the Leased Premises shall not be disturbed by Landlord or anyone properly claiming by, through or under Landlord, or Landlord’s successors or assigns.  Notwithstanding the foregoing, this provision is subject to all mortgages, encumbrances, easements and underlying leases to which this Lease may be or become subordinate.

25.          Unavoidable Delays.  Where either party hereto is required to do any act but is untimely in completing the act, the time attributable directly to delays caused by an Act of God, hurricane, tornado, rain, snow, cold or other weather, war, civil commotion, fire or other casualty, labor difficulties, or shortages of labor, materials or equipment, government regulations or other causes beyond such party’s reasonable control shall not be counted in determining the time during which such act is to be completed.  In any case where work is to be paid for out of insurance proceeds or condemnation awards, due allowance shall be made for delays in the collection of such proceeds and awards.  The provisions of this Article shall not be applicable at all to excuse or permit delay of the time for Tenant to pay Rent or other money or to obtain and maintain insurance policies.  If Landlord is unable to deliver the Leased.  Premises by the end of one (1) year after Landlord’s execution of this Lease, then either party may terminate this Lease by giving thirty (30) days written notice to the other at any time prior to tender.

  

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26.          Sole Broker.  Tenant represents that no broker, finder, or other person entitled to compensation (other than the Broker identified in Article 1) was involved in this Lease, and that no conversations or prior negotiations were had with any broker, finder or other possible claimant other than the Broker concerning the renting of the Leased Premises.  Tenant shall defend, indemnify and hold Landlord harmless against any claims for compensation (including legal fees incurred by Landlord) arising out of any conversations or negotiations had by Tenant with anyone other than the Broker.

27.          Estoppel Certificates.  From time to time, but not more than once every three (3) months, within ten (10) days following written notice, Tenant shall deliver to Landlord a signed and acknowledged written statement certifying: the date of this Lease and that this Lease is in full force and effect and unmodified except as stated; the monthly Base Rent payable during the Lease Term; the date to which the Rent and other payments have been paid; whether Landlord is in default, or if there are any offsets, defenses, or counterclaims claimed by Tenant, and if a default, offset, defense, or counterclaim is claimed, specifying the specific nature and default; and stating any additional matters requested by Landlord or a mortgagee.

28.          Shopping Center Changes.  Neither Exhibit A nor this Lease is a warranty by Landlord that the Shopping Center will remain as shown.  Landlord may relocate, increase, reduce or otherwise change the number, dimensions, or locations of the parking areas, drives, exits, entrances, walks and other Common Areas or buildings.  If Landlord desires to modernize the facade of the Shopping Center, Tenant shall, upon request of Landlord, install a new exterior sign and improve its storefront, following the design of Landlord’s architect.  Landlord reserves the right to use portions of the Common Area for construction-related activities and to erect temporary scaffolding in front of the Leased Premises.  Tenant waives any claim for rent abatement, loss of business or damages arising out of any reasonable and temporary inconvenience allegedly experienced by Tenant during the course of any alteration, improvement or modernization, or during any repair activities in which Landlord is engaged.

29.          Notices.  All notices intended to impose liability on the other party or exercise a right (“Notice”) shall be in writing and sent by certified or registered mail, return receipt requested, or delivered by a nationally recognized overnight courier (such as Federal Express or UPS) and in order to be effective a copy of any notice of Landlord’s default must be sent by Tenant to the holders of any mortgages, ground leases or security interests as per Article 16(C).  Notices shall be sent to the address set forth in Article 1 or to such other address as may be designated by notice.  Notices shall be effective the day after the notice was sent, or if by courier delivery, the day delivered.  The purported giving of notice or exercise by Tenant of any right, option or privilege by any means other than written notice given in strict compliance with this Article shall be null, void and of no force or effect, even if any such other means of communication succeeds in conveying actual notice.  If courier delivery is refused or not able to be made, the day delivery was first attempted shall be deemed the delivery date.

  

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(END OF RIDER A)

SEE RIDER B ATTACHED HERETO AND HEREBY MADE A PART OF THIS LEASE.

  

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RIDER “B”

30.           Notwithstanding anything provided herein, if there is any discrepancy between Rider “A” and Rider “B”, Rider “B” shall prevail.

31.          Sign Criteria - Reference to Article 10(D).  (A) Tenant must obtain Landlord’s written approval of its sign design drawings prior to the fabrication and installation of Tenant’s sign.  The drawings must include the dimensions, color, style and types of materials to be used.  The sign shall be placed in the designated area in such a manner that it does not extend above the parapet or facade and does not exceed 2/3 of Tenant’s storefront.  The plans and permits for, and the installation of, Tenant’s sign shall all be at Tenant’s sole cost and expense.  The sign shall be governed by all applicable provisions of this Lease, including, but not limited to, Tenant’s duty to repair (Article 10) and insure (Article 11) the sign.  The sign shall be subject to all governmental authorities’ codes and restrictions.  Tenant shall submit evidence of its receipt of all required permits to Landlord prior to the start of sign construction or installation.  Tenant shall submit sign drawings for Landlord’s review to:

Kevin Allen

Kimco Realty Corporation

5485 Harper’s Farm Road

Suite 202

Columbia, MD 21044

(B)           Upon the expiration or sooner termination of this Lease, Tenant shall remove its sign and restore the sign band/fascia to its original condition.

32.          Utility Deregulation.

(A)           Landlord Controls Selection.  Landlord and Tenant acknowledge that new utility deregulation may allow Landlord to change electric service providers in the future.  If such deregulation goes into effect, Landlord shall have the right at any time and from time to time during the Lease Term to either (i) contract for service from a different company or companies providing electricity service (each such company shall hereinafter be referred to as an “Alternate Service Provider”) or (ii) continue to contract for service from the present electric utility company (the “Electric Service Provider”).  In the event that the entire Shopping Center is required to be serviced by the Alternate Service Provider, Tenant agrees to contract for service from the Alternate Service Provider.

(B)           Tenant Shall Give Landlord Access.  Tenant shall cooperate with Landlord, the Electric Service Provider, and any Alternate Service Provider, at all times as reasonably necessary, and allow the foregoing to have reasonable access, upon at least forty-eight (48)  hours prior written notice, to any and all electric lines, feeders, risers, wiring, and any other machinery within the Leased Premises.

  

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                (C)           Landlord Not Responsible for Interruption of Service.  Landlord shall not be liable or responsible for any loss, damage, or expense that Tenant may sustain or incur by reason of any change, failure, interference, disruption, or defect in the supply or character of the electric energy furnished to the Leased Premises, or if the quantity or character of the electric energy supplied by the Electric Service Provider or any Alternate Service Provider is no longer available or suitable for Tenant’s requirements, and no such change, failure, defect, unavailability, or unsuitability shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or diminution of rent, or relieve Tenant from any of its obligations under the Lease.

33.           Option to Extend Lease.  (A) Provided Tenant is not in default under any provision of the Lease and has faithfully performed the terms or conditions of the Lease and Tenant is in actual physical possession of all of the Leased Premises (and operating and open for business as contemplated by this Lease, in all of the Leased Premises), Tenant shall have the right to extend the term of this Lease as set forth in Article 1 (the “Original Term”) for one additional period of five (5) years (the “Additional Term”) commencing upon the expiration of the Original Term, provided that Tenant shall give Landlord written notice of such election at least two hundred seventy (270) days prior to the expiration of the Original Term.  TIME IS OF THE ESSENCE WITH RESPECT TO THIS ARTICLE.  Such notice of election to extend the term of the Lease shall be irrevocable.  Except as expressly otherwise provided herein, the Additional Term shall be upon all of the terms and conditions of the Lease except that any articles which were intended to be one time, initial provisions or concessions (such as free Rent, Landlord Work, or a Tenant improvement allowance) shall be deemed to have been satisfied and shall not apply to the Additional Term.  Also, there is no option to further extend the Term of the Lease beyond the expiration date of the Additional Term.

(B)           Option Base Rent.  In the event Tenant exercises its option to extend the Term of the Lease as provided above, the annual Base Rent during each Lease Year of the Additional Term shall be as set forth in Article 1(H)(i).

34.           Possession.  Tenant acknowledges that the Leased Premises is presently occupied by another tenant (the “Existing Tenant”) under a different lease.  Landlord is in the process of terminating the Existing Tenant’s Lease.  In the event Landlord is delayed in obtaining possession of the Leased Premises from the Existing Tenant, then Landlord will be delayed in delivering possession of the Leased Premises to Tenant.  If Landlord fails to tender possession of the Leased Premises to Tenant within one hundred twenty (120) days after the date this Lease is fully executed by Landlord and Tenant, then either party shall have the right to terminate this Lease on thirty (30) days prior written notice to the other party at any time thereafter but prior to tender.  Tenant acknowledges that Landlord may elect to withhold its execution of this Lease until the aforementioned lease termination agreement has been executed.

  

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35.        Tenant’s Termination Right For Failure to Obtain Charter.  Tenant shall notify Landlord immediately upon obtaining its approval to commence banking operations, from the applicable governmental authorities (the “Approval”).  In the event Tenant exercises its best efforts to obtain the Approval but, notwithstanding these efforts, Tenant is unable to obtain the Approval on or before the September 30, 2004 (the “Approval Date”), then Landlord and Tenant shall have the right to terminate this Lease by: 1) giving to Landlord written notice of its inability to obtain the Approval on or before the Approval Date; 2) including with the notice all documentary evidence of its efforts to obtain the Approval on or before the required date; and, 3) declaring unequivocally in the notice that it is terminating the Lease pursuant to this Article.  If Tenant satisfies all of the conditions stated above, the Lease shall terminate on the day Landlord receives the notice required above.  After the Approval Date, Tenant shall have no further right to terminate this Lease on account of its inability to obtain the Approval.  TIME IS OF THE ESSENCE WITH RESPECT TO THIS ARTICLE.  Furthermore, in the event Tenant does not obtain the Approval within this time frame, Landlord shall have the right to terminate the Lease at any time thereafter prior to Tenant obtaining the Approval.  Tenant further acknowledges that Landlord shall not be obligated to tender the Leased Premises to Tenant until the date Tenant obtains the Approval or irrevocably waives its right to terminate the Lease pursuant to this Article.

36.          PLANS AND SPECIFICATIONS.

(A)           In the event Tenant desires to perform any work, or make any alterations or modifications in and to the  Leased Premises (other than installation of shelves, painting and carpeting, and other similar interior non-structural minor cosmetic chances), or in the event Tenant desires to perform any work in the Leased Premises which requires the submittal of plans to the municipality and/or requires municipal permits and approvals, Tenant shall submit to Landlord, for Landlord’s written approval the following items (hereinafter collectively referred to as “Required Items”):

  1.           Complete detailed drawings and specifications in sufficient detail for Tenant to obtain all necessary building permits (hereinafter collectively referred to as “Plans”) for all the work to be done by Tenant to the Leased Premises.  Each of Tenant’s Plans submissions shall include two sets of full-size construction drawings and specifications, as well as one set of computerized construction drawings saved on 3.5” diskettes in .DWG or .DXF file format.

 

  2.           A contractor’s “Payment and Performance Bond” in favor of Landlord as obligee, in form approved by Landlord, issued by a surety company satisfactory to Landlord, guaranteeing completion of Tenant’s work in accordance with the Plans free of liens and security agreements.

  3.           A comprehensive general liability insurance policy from Tenant’s contractor’s insurer (with a rating of not less than A-8) naming Landlord as additional insured for at least $3,000,000 combined single limit for bodily injury and property damage and contractor’s Workers’ Compensation and Occupational Disease insurance with statutory limits and employer’s liability with a limit of at least $1,000,000.

  4.           The general contractor’s written indemnity agreement in the form attached hereto as Exhibit “B-1” that the contractor shall indemnify, defend, save and hold harmless Landlord, its mortgagee, agents, employees and assigns, from all liabilities, claims, losses, liens, damages and suits of whatsoever nature for personal injury, death or property damage alleged to arise out of the work performed under the contract, whether by contractor or by any subcontractor, and whether asserted against Landlord or contractor.

  

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(B)           Landlord shall inform Tenant of any objections to the Required Items within thirty (30) days after receipt of all such items.  If Tenant fails to deliver any of the Required Items timely, then Landlord shall have the right to terminate this Lease and retain the Tenant’s entire security deposit as liquidated damages.  Furthermore, Landlord shall have no obligation to review Tenant’s Plans unless and until Landlord is in receipt of all Required Items.  Tenant, within fifteen (15) days of receiving Landlord’s objections to the Required Items, shall deliver to Landlord corrected Required Items, which Landlord shall accept or reject within the next fifteen (15) days.

(C)           Tenant must obtain Landlord’s written approval of all Required Items prior to commencing any of its work at the Leased Premises.  Landlord’s approval of Tenant’s Plans shall not constitute an affirmation by Landlord that they conform to law or impose any liability on Landlord.  Upon Landlord’s approval of the Required Items Tenant shall immediately apply for all permits necessary for its work.  After the permits are issued and Landlord has completed the work, if any, that it has specifically agreed in this Lease to do, Tenant shall promptly commence and complete Tenant’s work in conformity with the Plans, building department requirements and all relevant laws and regulations.

(D)           Tenant shall comply with all legal requirements during its work and, when completed, Tenant’s work must comply with all laws, ordinances, regulations or orders of public authority, and with the requirements of the appropriate Fire Insurance Rating Organization and Landlord’s insurance company.  Prior to opening for business, Tenant shall obtain and deliver to Landlord: (a) Tenant’s affidavit that all work, labor and materials have been paid for, (b) final lien waivers, as well as paid invoices or statements, from all contractors and subcontractors who performed work at the Leased Premises and all materialmen and suppliers who provided materials and/or equipment used in connection with Tenant’s work at the Leased Premises, and (c) a copy of the certificate of occupancy (or its local equivalent) for the Leased Premises.  If a temporary Certificate of Occupancy is issued, Tenant shall deliver a copy of that document to Landlord and then, upon issuance of a permanent Certificate of Occupancy, immediately forward a copy of it to Landlord.

(E)           If Landlord or its representative inspects the Leased Premises and determines that Tenant’s work is not being done in accordance with the approved Plans, Tenant shall correct any deficiencies or omissions immediately.

(F)           Tenant shall not permit any mechanic’s or other lien to be filed either against the Leased Premises or the Shopping Center or Tenant’s leasehold interest by reason of work, labor, services or materials supplied.  If any lien is filed, Tenant shall, within ten (10) days after notice of the filing, cause it to be discharged of record, failing which Landlord, in addition to any other right or remedy, may (but shall not be obligated to) discharge such lien by deposit, bonding proceedings or by payment of the claimed amount for Tenant’s account.  Any amounts so paid, together with interest at the Default Interest Rate from the date of payment, shall be paid by Tenant to Landlord on demand as additional Rent.  Nothing herein shall be construed as the consent or request of Landlord to any contractor, subcontractor, laborer or materialman to perform work or furnish materials.  Furthermore, nothing herein shall give Tenant the authority to contract for or permit the rendering of any service or furnishing of any material that could give rise to the filing of any lien.

  

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(G)           Tenant shall require its contractor to furnish to both Tenant and Landlord on completion of the work a guaranty, for a period of one (1) year from final completion of all work, that all work and materials will be free from all defects and that all apparatus (e.g., air-conditioning equipment) will develop capacities and characteristics specified in the approved Plans upon use, and that whenever within one (1) year of the final acceptance of the work, contractor is notified in writing by either Landlord or Tenant that any equipment, material or workmanship is defective or in some way does not meet specifications, contractor shall immediately replace, repair or otherwise correct the defect or deficiency without cost to Landlord.  Additionally, the following items shall be guaranteed for periods in excess of the one (1) year: Motor Compressor Units - five (5) years; Exterior Walls - two (2) years (guaranteed against air and moisture leakage); Roofing - two (2) years.

(H)           In the event Tenant’s work involves the construction of a demising wall, Tenant shall physically indicate the proposed location of the demising wall on the floor of the Leased Premises, notify Landlord’s architect that the location has been marked and that construction of the wall is about to begin, and give Landlord’s architect a reasonable opportunity to come to the Leased Premises and inspect the proposed placement of the wall.

(I)           For any Tenant work that involves penetration of the roof surface, Tenant shall employ Landlord’s roofing contractor, thereby ensuring that the roofing bond and/or warranty will remain in full force and effect.  The maintenance of Tenant’s roof work will be the sole responsibility of Tenant and shall include the repair of adjoining areas that might have been affected due to water penetration through Tenant’s roof work.

(J)           In the event Tenant must obtain a zoning variance, waiver or other change in order to use the Leased Premises for the purposes described in Article 1(M), or for any work Tenant desires to perform at the Leased Premises, Tenant shall first obtain Landlord’s written approval, not be unreasonably withheld or delayed, prior to seeking such a change.  If Landlord’s consent is given, Landlord agrees to cooperate with Tenant in such application and Tenant agrees to: (i) keep Landlord advised of all developments as they occur, (ii) provide Landlord with an opportunity to review all documents before they are filed, and (iii) give Landlord a reasonable amount of notice before any hearings are held so that Landlord’s representative shall have an opportunity to attend.  Tenant shall not be permitted to enter into any agreements that affect the use, access, or condition of the Shopping Center without first obtaining Landlord’s written consent, and any attempt to do so shall constitute a default under the Lease.

37.          Drive-Through Lane.  The Drive-Through Lane located immediately adjacent to the Leased Premises shall be deemed part of the Leased Premises for all purposes under the Lease, excluding Landlord’s repair and maintenance obligations, but including Tenant’s obligation to insure the Drive-Through Lane and indemnify, defend, and hold Landlord harmless from any costs (including reasonable attorneys fees), actions, damages, or claims arising out of, or resulting from, the Drive-Through Lane.  Tenant shall be obligated to maintain and make all repairs to the Drive-Through Lane at all times during the Lease Term so as to keep same in good condition and repair and free of litter and debris.  Tenant shall police and monitor the Drive-Through Lane and the area surrounding the Drive-Through Lane as necessary for security purposes (which includes adequate lighting, emergency telephones and video cameras of the type customarily found at similar banking drive-through lanes).  Landlord shall have no obligations whatsoever with respect to repairing or maintaining the Drive-Through Lane or any part thereof.

  

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38.          Recordation.  Each party agrees that it will, upon the other party’s request, execute a memorandum of this Lease in a mutually acceptable form suitable for recording under applicable Maryland law.  Either Tenant or Landlord may record such a memorandum of lease but this Lease imposes no recordation obligation.  If either party records the memorandum of lease, the party making the recording shall pay all costs of recordation, including any transfer or recordation taxes thereon.

END OF RIDER B

  

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EXHIBIT “1”

Authorization Agreement for Direct Debit

CHASE

AUTHORIZATION AGREEMENT FOR DIRECT DEBIT

	
COMPANY NAME

	
COMPANY ID NUMBER

 

I (We) authorize above named company to initiate debit entries to my (our) account with the depository named below.  If the company erroneously debited funds from my (our) account I (we) authorize the company to initiate the necessary credit entries not to exceed the total of the original amount debited for the entry in question.

	
DEPOSITORY NAME (FINANCIAL INSTITUTION)

 

	
BANK SAVINGS & LOAN

	
CITY                 STATE             ZIP

	
TRANSIT/ABA NUMBER

	
CHECKING                                SAVINGS

ACCOUNT                                ACCOUNT

	
ACCOUNT NUMBER

 

 

This authorization will remain in effect until the company has received written notification from me (or either of us) at the address listed below/above that is to be terminated in such time and manner for the company to act on it.

I (or either of us) have the right to stop payment of a debit entry by notification to my Depository 3 business days before my account is charged.  After account has been charged, I have the right to have the amount of an erroneous debit immediately credited to my account by depository, provided I (we) send written notice of such debit entry in error to depository within fifteen days following issuance of the account statement or 60 days after posting whichever occurs first.

	
NAME(S)

 

 

	
ADDRESS                                 CITY                 STATE                ZIP

	
TELEPHONE

 

 

	
SIGNATURE

	
DATE

 

 

STAPLE VOIDED CHECK OR DEPOSIT SLIP (CREDIT UNION) HERE.

  

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EXHIBIT “B-1”

INDEMNITY AGREEMENT

This INDEMNITY AGREEMENT pertains to work to be performed at the Hickory Ridge Shopping Center, and located in Columbia, Maryland, herein referred to as “Shopping Center” (Kimco Site 211).

By ______________________ (herein referred to as “Contractor”), having an address at:  __________________________________________ and is part of the Contract with ___________________________ (herein referred to as ‘Tenant”), having an address at _______________________________________ which Contract is dated __________________, for work to be done at the Shopping Center from approximately __________________________ through __________________________.

Contractor acknowledges that Tenant is contractually obligated to obtain this Agreement under a lease for its store at the Shopping Center.  Contractor has entered into this Agreement in order to induce Tenant to retain Contractor to perform certain work at its store.

Contractor hereby agrees to INDEMNIFY, SAVE & HOLD HARMLESS HRVC, LLC, and Kimco Realty Corporation, hereinafter collectively referred to as Landlord, its respective agents and employees, assigns, and architects of and from all liabilities, claims, losses, damages, injury, causes of actions and suits of whatever nature for personal injury, including death, and for property damage, arising out of or alleged to arise out of, or any conditions of, the work performed under this Contract, whether by Contractor or by any sub-contractor, and whether any claim, cause of action, or suit is asserted against Landlord or its agents and employees, assigns, and architects, or Contractor, severally, jointly, or jointly and severally.  Contractor hereby agrees to INDEMNIFY, SAVE & HOLD HARMLESS Landlord, its agents and employees, assigns, and architects of and from any and all costs of any nature, including without limitation investigation, adjustment, attorney’s fees, expert’s fees, court costs, administrative costs, and other items of expense arising out of any claim, cause of action or suit of the kind and nature herein set forth.

Neither Contractor nor any sub-contractor shall file any mechanic’s, materialmen’s, or other liens either against the Leased Premises or the Shopping Center from any work, labor, services or materials supplied or performed by Contractor or by any sub-contractor.  Contractor hereby agrees to INDEMNIFY, SAVE & HOLD HARMLESS Landlord, its agents and employees, assigns, and architects of and from any and all costs of any nature, including without limitation investigation, adjustment, attorney’s fees, expert’s fees, court costs, administrative costs, and other items of expense arising out of any mechanic’s, materialmen’s, or other liens filed against the either against the Leased Premises or the Shopping Center by Contractor or by any sub-contractor.

Contractor hereby agrees that it will obtain Comprehensive General Liability insurance including Blanket Contractual Liability with minimum amount of $3,000,000.00 Combined Single Limit for bodily injury and property damage.

  

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Additionally, Contractor must also obtain Workers Compensation and Occupational Disease insurance with statutory limits and form as required by the State in which the work is to be performed, and Employer’s Liability with a limit of not less than $1,000,000.00 for all damage.

Certificates for all insurance will be submitted to Landlord before commencement of any work.  The Certificates must indicate that the “HOLD HARMLESS AGREEMENT” contractual indemnity as set forth in this agreement is insured.  Landlord must be named as an additional insured and the policy must provide that no less than 15 days advance written notice will be given to both the party to whom such Certificates are issued and the additional insured in the event of cancellation of the policies or a reduction in the limits of liabilities set forth above.  At Landlord’s request, Contractor will immediately furnish Landlord with a true and complete copy of any insurance policy Landlord wants to renew.  No invoices for payments will be honored unless such Certificates of Insurance (or the policy, if requested) had been filed timely with Landlord at 3333 New Hyde Park Road, Suite 100, New Hyde Park, NY 11042-0020.

Contractor acknowledges that Landlord did not retain Contractor to perform any work at the Shopping Center and agrees that Contractor will not look to Landlord for any compensation whatsoever for any work it performs at the Shopping Center.

IN WITNESS HEREOF, this Contractor has executed this Agreement this ______ day of __________________, 200__.

CONTRACTOR:

	
By:

	
   

	  
	
Name:

	  
	
Title:

	  

  

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