Document:

Exhibit 10.18

 

GROUND LEASE

 

BETWEEN

 

HICKORY CROSSING, LLC

as Landlord

 

and

 

CARROLLTON BANK

as Tenant

 

Date: November 4, 2003

 

Property:

 

Hickory Crossing

Harford County, Maryland

 

 

Table
of Contents

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
   

  	
  1

  
	
  2.

  	
  Preconditions to Tenant’s Lease Obligations

  	
   

  	
  4

  
	
  3.

  	
  Lease Term

  	
   

  	
  6

  
	
  4.

  	
  Landlord’s Construction and Other Site Obligations

  	
   

  	
  7

  
	
  5.

  	
  Tenant’s Construction Obligations

  	
   

  	
  7

  
	
  6.

  	
  Use of Property

  	
   

  	
  8

  
	
  7.

  	
  Limitation on Multiple Banking Uses

  	
   

  	
  9

  
	
  8.

  	
  Rent

  	
   

  	
  10

  
	
  9.

  	
  Common Elements Operating Costs

  	
   

  	
  10

  
	
  10.

  	
  Taxes and Assessments

  	
   

  	
  11

  
	
  11.

  	
  Utilities

  	
   

  	
  12

  
	
  12.

  	
  Maintenance

  	
   

  	
  13

  
	
  13.

  	
  Alterations

  	
   

  	
  13

  
	
  14.

  	
  Trade Fixtures

  	
   

  	
  13

  
	
  15.

  	
  Signs

  	
   

  	
  13

  
	
  16.

  	
  Landlord’s Access

  	
   

  	
  14

  
	
  17.

  	
  Rules and Regulations

  	
   

  	
  14

  
	
  18.

  	
  Indemnification

  	
   

  	
  15

  
	
  19.

  	
  Insurance and Casualty

  	
   

  	
  16

  
	
  20.

  	
  Eminent Domain

  	
   

  	
  18

  
	
  21.

  	
  Assignment and Subletting

  	
   

  	
  19

  
	
  22.

  	
  Mechanics’ Liens and Other Liens

  	
   

  	
  21

  
	
  23.

  	
  Quiet Enjoyment

  	
   

  	
  22

  
	
  24.

  	
  Landlord’s Right to Mortgage; Attornment

  	
   

  	
  22

  
	
  25.

  	
  Estoppel Certificates

  	
   

  	
  22

  
	
  26.

  	
  Acts of Other Tenants

  	
   

  	
  23

  
	
  27.

  	
  Environmental Matters

  	
   

  	
  23

  
	
  28.

  	
  Defaults and Remedies

  	
   

  	
  24

  
	
  29.

  	
  Bankruptcy or Insolvency

  	
   

  	
  26

  
	
  30.

  	
  Miscellaneous Provisions

  	
   

  	
  26

  

 

 

GROUND LEASE

 

THIS
LEASE (the “Lease”),
dated 11/4/, 2003, is made and entered into by and between
HICKORY CROSSING, LLC, a Maryland limited liability company (the “Landlord”)  having an office at 14 Back
River Neck Road, Baltimore, Maryland 21221, and CARROLLTON BANK, a Maryland
state chartered commercial bank (the “Tenant”)  having an
office at 344 North Charles Street, Suite 300, Baltimore, Maryland
21201-4301

 

INTRODUCTORY STATEMENT

 

Landlord
is the owner of certain unimproved real property containing approximately 4.554
+/- acres, located in Hickory, Harford County, Maryland, which is identified as
Lots 3, 5, 6 and 7, and outlined in green (the “Commercial Center”) on the Revised
Final Plat, Division of Lot 3 — Formerly the Land of A-Blair Syndicate, dated March 7,
2003, (the “Plat”) as prepared by Frederick Ward & Associates (“Landlord’s Engineer”),  which Plat is attached
hereto as Exhibit A and incorporated herein by
reference. Also attached hereto as Exhibit A-1 is the
Conceptual Development Plan for the Property (the “Conceptual Development Plan”),  prepared by Landlord’s
Engineer.

 

Landlord
desires to lease to Tenant and Tenant desires to rent from Landlord a portion
of the Commercial Center identified as Lot 3 on the Plat, containing
approximately 38,515 +/- square feet of land area and approximately .82 +/-
acres as outlined in red on the Plat (the “Property”)
subject to and in accordance with the terms and conditions hereinafter
set forth.

 

NOW,
THEREFORE, for good and valuable consideration, Landlord leases to Tenant and
Tenant rents from Landlord the Property; together with the right to use the
Common Elements (as hereinafter defined) in common with others during the Term
(as hereinafter defined) of this Lease, and any renewal or extension thereof.
This Lease is made upon the following terms and conditions:

 

1.                                     Definitions. As used in this Lease, the following terms are
defined as follows:

 

1.1.                              Additional Rent —  see Section 8.2.

 

1.2.                              Annual Rent —

 

	
  Applicable Portion of Term

  	
   

  	
   

  	
   

  	
  Monthly

  Installment

  	
   

  
	
  Beginning

  	
   

  	
  Ending

  	
   

  	
  Annual Rent

  	
   

  	
  (Annual ÷ 12)

  	
   

  
	
  Rent Commencement Date (“RCD”)

  	
   

  	
  5th anniversary of RCD

  	
   

  	
  $

  	
  95,000.00

  	
   

  	
  $

  	
  7,916.67

  	
   

  
	
  5th anniversary of RCD

  	
   

  	
  10th anniversary of RCD

  	
   

  	
  $

  	
  104,500.00

  	
   

  	
  $

  	
  8,708.33

  	
   

  
	
  10th anniversary of RCD

  	
   

  	
  15th anniversary of RCD

  	
   

  	
  $

  	
  114,950.00

  	
   

  	
  $

  	
  9,579.17

  	
   

  
	
  15th anniversary of RCD

  	
   

  	
  20th anniversary of RCD

  	
   

  	
  $

  	
  126,445.00

  	
   

  	
  $

  	
  10,537.08

  	
   

  
	
  First Extension Term, if
  exercised

  	
   

  	
   

  	
   

  	
  $

  	
  139,089.50

  	
   

  	
  $

  	
  11,590.79

  	
   

  
	
  Second Extension Term, if
  exercised

  	
   

  	
   

  	
   

  	
  $

  	
  152,998.45

  	
   

  	
  $

  	
  12,749.87

  	
   

  
	
  Third Extension Term, if exercised

  	
   

  	
   

  	
   

  	
  $

  	
  168,298.30

  	
   

  	
  $

  	
  14,024.86

  	
   

  
	
  Fourth Extension Term, if
  exercised

  	
   

  	
   

  	
   

  	
  $

  	
  185,128.13

  	
   

  	
  $

  	
  15,427.34

  	
   

  

 

 

1.3.                                Building —  refers to the one-story masonry building of
approximately 3,100 +/- square feet to be constructed by Tenant at its cost on the Property,
together with all
alterations, additions, improvements, repairs, restorations and
replacements thereof.

 

1.4.                              Commencement Date - the date of
execution of this Lease by Landlord and Tenant.

 

1.5.                              Common Elements —  The two (2) pylon signs
(and the land immediately surrounding the same) to be provided and maintained
by Landlord for the benefit of the Commercial Center.

 

1.6.                              Common Elements Operating Costs —  See Section 9.2.

 

1.7.                              Environmental Laws —  all applicable federal, state, or local law, ordinance, or
regulation, as may be amended from time to time, including, but not limited to
the Resource Conservation and Recovery Act, the Toxic Substances Control Act,
the Comprehensive Environmental Response, Compensation and Liability Act, the
Clean Air Act, and the Clean Water Act that regulate any hazardous or toxic
substance, material, or waste and amendments thereto.

 

1.8.                              Extension Term —  See Section 3.2.

 

1.9.                              Hazardous Materials —  any hazardous or toxic substance, material, or waste,
including, but not limited to, those substances, materials, and wastes listed
in the United States Department of Transportation Hazardous Materials Table (49
CFR 172.101) or by the Environmental Protection Agency as hazardous substances
(40 CFR Part 302) and amendments thereto, or such substances, materials
and wastes regulated under any Environmental Laws.

 

1.10.                        Initial Term —  See Section 3.1.

 

1.11.                        Landlord’s Delivery Date -  the date on which Landlord
delivers the Property to Tenant following substantial completion of Landlord’s
Land Site Improvements. Landlord’s Engineer shall notify Tenant of such date in
writing and such notification shall be conclusive in the absence of bad faith
or fraud.

 

1.12.                        Landlord’s Land Site Improvements -  those improvements, more
particularly described in Exhibit B attached hereto and
incorporated herein by reference, to be constructed by Landlord on or adjacent
to the Property in accordance with the terms and conditions of this Lease.

 

2

 

1.13.                        Landlord’s Notice Address —  the following address for
notices or such other address as Landlord may designate in writing from time to
time:

 

Hickory Crossing, LLC

c/o
Kirk A. Salvo, Manager 

14
Back River Neck Road 

Baltimore,
Maryland 21221

 

With a Copy to:

 

David H. Cole, Esquire

Law Office of Curtis C.
Coon, LLC

305
West Chesapeake Avenue — Suite 105 

Towson,
Maryland 21204

 

1.14.                        Landlord’s Payment Address —  the following address for
rent payments or such other address as Landlord may designate in writing from
time to time:

 

Hickory
Crossing, LLC 

14
Back River Neck Road

Baltimore, Maryland 21221

 

1.15.                        Landlord’s Property Site Improvements —  the common pylon signs now
or hereafter provided or constructed by Landlord that serve the Commercial
Center.

 

1.16.                        Market Area —  the greater Harford County,
Maryland area.

 

1.17.                        Permitted Use —  any lawful purpose subject
to applicable zoning laws, provided, however, that in no event will Tenant, its
successors, affiliates and assigns be permitted to use all or any portion of
the Property for any of the following uses: (a) convenience store,
delicatessen, dairy store, coffee shop, or coffee bar, bagel store, bakery,
sandwich store selling cold sandwiches (such as a Subway), donut or similar
shop, or a retail gasoline dispensing facility; (b) the sale of auto
parts, auto accessories and/or auto supplies; (c) a drug store or business
which sells or dispenses prescription drugs or for any collateral use (e.g.
parking, drainage, or service drives) in support of a drug store or a business
which serves or dispenses prescription drugs; (d) any use that is
prohibited by a restrictive covenant (now or hereafter existing) contained in a
separate lease or signed letter of intent for all or any portion of the
Commercial Center between Landlord and another tenant, or prospective tenant,
as the case may be; and (e) any other then existing uses by other tenants,
sublessees, licensees or occupants within the Commercial Center. In no event
shall Tenant be precluded from using the Property for all banking, residential
mortgage lending and related regulatorily approved financial services
permissible for banks and bank-affiliated companies; provided, however, that
such related financial services do not violate any of the prohibited uses set
forth in sections (a)-(e). If both Tenant and Landlord wish to provide a
competing regulatorily approved related financial service, then the person
first providing such service within the Commercial Center shall be entitled to
exclusively provide such service within the Commercial Center.

 

3

 

1.18.                      Regulatory Approval -  the regulatory approval that
Tenant is required to obtain from all applicable Federal and State of Maryland
regulatory bodies in order to operate a branch bank office at the Property.

 

1.19.                      Rent Commencement Date -  the earlier to occur of

 

a)                                    The later of:

 

1)                                      One Hundred
Twenty (120) days after Commencement Date; or

 

2)                                      One Hundred
Twenty (120) days after Landlord’s Delivery Date; and

 

b)                                   The date Tenant opens for business to the public at the Property.

 

1.20.                      Tenant Improvements —  include the Building, sidewalks
and curbs, building lighting fixtures and conduits, utility connections
(including, without limitation, cable connections), paved parking and
driveways, road gutters and landscaping on the Property, and all other
improvements necessary for Tenant’s use of the Property (other than Landlord’s
Land Site Improvements and Landlord’s Property Site Improvements) now or
hereafter constructed on the Property by Tenant in the approximate location
shown on Exhibit A-1.

 

1.21.                      Tenant’s Notice Address —  the following address for
notices or such other address as Tenant may designate in writing from time to
time:

 

Carrollton Bank

344
North Charles Street — Suite 300 

Baltimore,
Maryland 21201-4301 

Attention:
Robert A. Altieri, President

 

With a copy to:

 

William
C. Rogers, Jr., Esquire 

Rogers,
Moore & Rogers

6 South Calvert Street

Baltimore, Maryland 21202

 

1.22.                      Term -  the Initial Term or the
applicable Extension Term, whichever is then in effect.

 

2.                                     Preconditions to Tenant’s Lease Obligations.

 

2.1.                            Tenant’s obligations
under this Lease shall be conditioned upon the following:

 

4

 

(a)                                  Tenant may, but shall not be obligated to, have a title report prepared
for the Property. If such title report indicates that Landlord is unable to
convey a leasehold interest in the Property reasonably acceptable to Tenant,
Tenant may terminate this Lease upon written notice to Landlord within one
hundred twenty (120) days after the Commencement Date. If Tenant does not elect
to terminate this Lease upon written notice to Landlord within such one hundred
twenty (120) day period, this precondition will be deemed waived.

 

(b)                                 Tenant may, but shall not be obligated to, have a survey of the Property
prepared at Tenant’s sole cost and expense by a surveyor of Tenant’s choice
within one hundred twenty (120) days after the Commencement Date. If such
survey shows encroachments onto or from the Property, violations or
restrictions of record, boundary line conflicts, or other information that
Tenant reasonably finds objectionable, then Tenant may terminate this upon
giving written notice to Landlord within one hundred twenty (120) days after
the Commencement Date. If Tenant does not elect to terminate this Lease upon
written notice to Landlord within such one hundred twenty (120) day period,
this precondition shall be deemed waived.

 

(c)                                  Tenant may, but shall not be obligated to, commission an environmental
assessment of the Property, which assessment shall be completed within one
hundred twenty (120) days after the Commencement Date. If the assessment
indicates the presence of any Hazardous Materials or if the assessment
indicates that further assessment is reasonably warranted due to the possible
presence of Hazardous Materials, Tenant may terminate this Lease upon giving
written notice to Landlord within one hundred twenty (120) days after the
Commencement Date. If Tenant does not elect to terminate this Lease upon
written notice to Landlord within such one hundred twenty (120) day period,
this precondition shall be deemed waived.

 

(d)                                 Tenant may, but shall not be obligated to, have soil borings prepared
for the Property within one hundred twenty (120) days after the Commencement
Date. If such soil borings indicate that Tenant is unable to construct and use
the Tenant Improvements on the Land as intended to be designed by Tenant and
the Tenant Improvements cannot be redesigned to Tenant’s satisfaction to
accommodate the soil conditions, Tenant may terminate this Lease upon written
notice to Landlord within one hundred twenty (120) days after the Commencement
Date. If Tenant does not elect to terminate this Lease upon written notice to
Landlord within such one hundred twenty (120) day period, this precondition
shall be deemed waived.

 

(e)                                  Tenant, at its sole cost and expense, shall file for and thereafter diligently
pursue Regulatory Approval, provided, however, that Regulatory Approval shall
be given, if at all, within one hundred twenty (120) days after the
Commencement Date. Tenant shall notify Landlord in writing (the “Regulatory
Approval Notice”) promptly after Tenant receives Regulatory Approval. If
Regulatory Approval is denied, this Lease shall be of no further force and
effect, and neither party shall have any further rights or obligations hereunder.
The foregoing notwithstanding, if Tenant has not received Regulatory Approval
within one

 

5

 

hundred
(120) days following the Commencement Date, this Lease will be deemed
terminated unless the parties otherwise agree.

 

2.2.                            Tenant is
hereby granted the right and privilege to enter upon the Property and to perform
such tests and take such samples and measurements as required to satisfy the
conditions precedent set forth in this Section 2; provided that Tenant shall restore the
Property to its condition prior to Tenant’s entry thereon; and provided further that Tenant shall
indemnify and hold Landlord harmless for any claim of loss or damage arising
out of Tenant’s entry onto the Property. Tenant’s obligations hereunder will
survive termination of this Lease. Tenant’s entry upon the Property under this Section 2.2
shall not be deemed possession by the Tenant.

 

2.3.                            If Tenant gives
written termination notice to Landlord in a timely manner because of any
item not acceptable to it under Section 2.1 above, this Lease shall be of
no further force or effect, and neither party shall have any further rights or
obligations hereunder except those rights or obligations that expressly survive
termination of this Lease.

 

3.                                     Lease Term.

 

3.1.                            Initial
Lease Term. The initial term (the “Initial Term”)  of this Lease shall commence on the Commencement Date and
shall expire at the end of the month that is twenty (20) years after the Rent
Commencement Date unless sooner terminated in accordance with the provisions
hereof. After the Rent Commencement Date and upon Landlord’s request, Tenant
shall promptly enter into a written agreement with Landlord, mutually
acceptable and in recordable form, stipulating the Commencement Date, the Rent
Commencement Date, and expiration date of the Initial Term.

 

3.2.                            Extensions.
Provided Tenant is not then in monetary or material non-monetary default
of this Lease beyond any applicable cure period, Tenant may extend this Lease
for four (4) additional periods of five (5) years each (each an “Extension
Term”)  on the same terms and conditions as provided in this Lease, by
delivering written notice of the exercise thereof to Landlord not later than
six (6) months before the expiration of the then current Term. On or
before the commencement date of the Renewal Term in question, at either party’s
request, Landlord and Tenant shall execute an amendment to this Lease
confirming the Extension Term on the same terms and conditions as provided in
this Lease, except as follows:

 

(a)                                  After the last
scheduled Extension Term hereunder, Tenant shall have no further extension
options unless expressly granted by Landlord in writing; and

 

(b)                                 Landlord shall
lease to Tenant the Property in its then-current condition.

 

Tenant’s rights under this Section 3.2
shall terminate if (i) this Lease or Tenant’s right to possession of the
Property is terminated, or (ii) Tenant fails to timely exercise its option
under this Section 3.2, time being of the essence with respect to Tenant’s
exercise thereof.

 

6

 

3.3                                 Any holding over by Tenant after the expiration of the Initial Term or Extension
Term, as applicable, without the consent of Landlord, shall be construed to be
a tenancy from month-to-month at one and one-half (1.5) times the Annual Rent
herein specified pro-rated on a monthly basis, and shall otherwise be on the
terms and conditions herein specified, so far as applicable.

 

4.                                     Landlord’s Construction and Other Site Obligations.

 

4.1.                              Landlord has subjected its interest in the Property to the Declaration
of Covenants, Conditions and Restrictions (substantially in the form attached
hereto as Exhibit C, the “Declaration”).
The parties acknowledge and
agree that this Lease is subject to the terms, provisions and conditions of the
Declaration, as amended. Provided Tenant is not in default of any of its
monetary or non-monetary obligations beyond any applicable cure period,
Landlord shall not modify or amend the Declaration so as to limit Tenant’s
material rights or increase any of Tenant’s material obligations without the
Tenant’s consent during the Term, which consent shall not be unreasonably
withheld or delayed.

 

4.2.                              The Final Development Plan to be attached as Exhibit A-2,
depicts the site improvements to be constructed by both Landlord and Tenant.
Landlord shall make application to the appropriate governmental agencies,
quasi-governmental agencies and utility companies for site plan approval and
all other permits and approvals necessary to commence construction of Landlord’s
Property Site Improvements and Landlord’s Land Site Improvements. Landlord
shall use commercially reasonable efforts to obtain such permits, and to
substantially complete the construction of Landlord’s Land Site Improvements
within one (1) year following the Commencement Date.

 

4.3.                              Substantial Completion. For all purposes of this Lease, the phrase “substantial
completion of Landlord’s Land Site Improvements” shall be deemed to have occurred when Landlord’s Engineer furnishes a
certificate to Landlord and Tenant certifying that the Landlord’s Land Site
Improvements are sufficiently complete to enable Tenant to commence
construction of Tenant Improvements, which certification shall be conclusive,
in the absence of bad faith or fraud.

 

4.4.                              Termination. If Landlord’s Delivery Date does not occur on or before one (1) year
following the Commencement Date, the date may be extended upon written notice
by Landlord up to one hundred eighty (180) days, for any delays caused by force
majeure (as defined herein). If Landlord’s Delivery Date does not occur within
such time period (as may be extended), Tenant shall have the right to terminate
this Lease by notice to Landlord sent any time before Landlord’s Delivery Date
(as may be extended) occurs. In such event, neither party shall have any
further rights or obligations hereunder except for those obligations that
expressly survive termination.

 

5.                                     Tenant’s Construction Obligations.

 

5.1.                              General. Tenant shall construct or cause to be constructed at Tenant’s sole cost and
expense the Tenant Improvements in a good and workmanlike manner. All

 

7

 

construction
by Tenant shall be done pursuant to plans and specifications therefor prepared
by a licensed architect or engineer. All such plans and specifications for the
Tenant Improvements shall be subject to Landlord’s prior written approval,
which approval shall not be unreasonably withheld or delayed. The foregoing
notwithstanding, Landlord’s approval will not be required for changes in the
construction Plans by Tenant, the estimated cost of which does not exceed
Twenty-Five Thousand ($25,000.00) Dollars. Tenant shall perform its work
without interfering with other construction on the Property or within the
Commercial Center and shall cooperate with the contractors of Landlord and
other tenants within the Commercial Center. Tenant shall bear all risk of
theft, loss or damage to its personal property, including building materials
stored on the Property or incorporated into the Tenant Improvements, from
whatsoever cause, unless such loss or damage is due to the negligence or
willful misconduct of Landlord.

 

5.2.                            Timing.
Within ninety (90) days after the Commencement Date, Tenant shall
prepare, or cause to be prepared, complete plans and specifications for the
Tenant Improvements (the “Plans”)  and shall
submit the same to Landlord for Landlord’s approval, which approval shall not
be unreasonably withheld or delayed. If Landlord objects to Tenant’s Plans,
Tenant shall revise the Plans in an effort to respond to Landlord’s objections
and resubmit the Plans within twenty (20) calendar days thereafter. If Landlord
does not respond or object within ten (10) days after Tenant’s initial
submission of the Plans or within five (5) Business Days after Tenant’s
resubmission of the Plans, the Plans will be deemed approved. Within ten (10) days
after (i) the Plans for the Tenant Improvements having been approved or
deemed approved, Tenant shall make application to the applicable jurisdiction
for a building permit (the “Tenant’s Building Permit”)  and to all other appropriate
governmental agencies, quasi-governmental agencies and utility companies for
all permits and approval necessary to construct the Tenant Improvements. Tenant
shall substantially complete construction of the Tenant Improvements within one
hundred twenty (120) days after Landlord’s Delivery Date. As used herein, the
phrase “substantial
completion of the Tenant Improvements”  shall mean that construction of the Tenant
Improvements is sufficiently complete to permit Tenant to occupy and use the
Property for Tenant’s business operations notwithstanding the existence of
certain minor items that are incomplete or unfinished (i.e., “punch list items”).  Tenant hereby grants
Landlord permission to assist Tenant with regard to the processing of Tenant’s
applications for the Tenant’s Building Permit and all other permits or
approvals, except the Regulatory Approval, which shall be the sole
responsibility of Tenant.

 

6.                                     Use of Property.

 

6.1.                            Landlord
covenants as follows:

 

(a)                                  public water
(excluding Tenant’s water meter), electric power, and sewer service
exist or will be stubbed by Landlord to a central point located along Hoagie
Drive, contiguous to the Property;

 

(b)                                 appropriate
storm water management serves or will serve the Property and adequately sized storm drain
pipe will be provided to the lease line of the Property to satisfy Tenant’s
storm water management and drainage requirements;

 

8

 

(c)                                  the Property is
zoned as B-3 and a branch bank with drive-in facilities is a permitted use in
this zoning classification;

 

(d)                                 Landlord has
not acquired or received any information that would raise reasonable doubt
about the right of Tenant to use the Property for a branch bank including a
drive-in facility; and

 

(e)                                  Landlord has
not and will not take any action to request a change in the zoning of the
Property that would preclude the use of the Property for a branch bank
including a drive-in facility.

 

6.2.                            Tenant may initially use the Property for the Permitted Use.

 

6.3.                            Tenant shall promptly comply with all laws, rules, regulations, requirements,
notices of governmental bodies and public authorities and the reasonable
recommendations of the local board of fire underwriters rating bureau or other
fire insurance rating organization for the Market Area and of the Landlord’s
insurers, pertaining to the Property, the improvements thereon or their use,
occupancy or maintenance. Landlord shall promptly comply with all laws, rules,
regulations, requirements, notices of governmental bodies and public
authorities and the reasonable recommendation of the local board of fire
underwriters rating bureau, or other fire insurance rating organization for the
Market Area pertaining to the Common Elements.

 

6.4.                            Tenant will comply with all provisions of the Americans With
Disabilities Act (the “ADA”) with
respect to the Property, and Landlord shall comply with all provisions of the
ADA, if any, with respect to the Common Elements.

 

7.                                     Limitation on Multiple Banking Uses.

 

7.1.                            Except as otherwise specifically set forth in this Lease, from and
after the date of this Lease and for so long thereafter as
Tenant is not in default beyond any applicable cure period hereunder, Landlord
shall not lease or sell space in the Commercial Center to another commercial
bank, savings bank, savings and loan association, credit union, residential
mortgage operation, or regulatorily approved related financial service (the “Use Restriction”);  provided,
however, that if Tenant ceases to use the entire Property,
excluding any expressly permitted license or sublease of a portion thereof, for
a period in excess of six (6) consecutive months (not including time used for
repairing a casualty) for commercial banking, residential mortgage lending and
regulatorily approved related financial services permissible for banks and
bank- affiliated companies, the Use Restriction shall terminate. The Use
Restriction shall not include automated teller machines installed in the
interior of other buildings of the Commercial Center by other owners or tenants
of such buildings.

 

7.2.                            Landlord and Tenant agree that in the event Landlord violates the foregoing Use
Restriction, Tenant’s remedies shall include injunctive relief and/or actual
damages and any other remedy available to it at law or in equity. The foregoing
notwithstanding, in no event shall Tenant be entitled to consequential or
punitive damages.

 

9

 

8.                                     Rent.

 

8.1.                              Commencing on
the Rent Commencement Date and continuing throughout the Initial Term, Tenant
shall pay Annual Rent in equal monthly installments, in advance, on the first
day of each calendar month. If the Rent Commencement Date falls on a day other than
the first day of a calendar month, then the Annual Rent for any fractional
month during the Term shall be apportioned on a daily basis based upon a thirty
(30) day month.

 

8.2.                              Whenever under the terms of this Lease any sum of money is required to be paid by
Tenant in addition to the Annual Rent herein reserved, said sum shall be deemed
to be additional rent (“Additional Rent”)  and collectible as rent whether or not so
designated. All Annual Rent and Additional Rent shall be paid without prior
demand, except as provided otherwise by the terms of this Lease, and without
any setoff, abatement or deduction of any nature whatsoever. Any payment by
Tenant of a lesser amount of Annual Rent or Additional Rent than is then due
shall be applied to such category of arrearage as Landlord may designate
irrespective of any contrary designation by Tenant and to the oldest, most
recent or other portion of the sum due as the Landlord may determine; and
Landlord’s acceptance of any such partial payment shall not be deemed an accord
and satisfaction, and shall be without prejudice to Landlord’s right to pursue
any other remedies.

 

8.3.                              All rent under this Lease shall be paid to Landlord at Landlord’s
Payment Address.

 

9.                                     Common Elements Operating Costs.

 

9.1.                              Tenant shall pay to Landlord Tenant’s proportionate share of the actual
Common Elements Operating Costs during the Term in accordance with this
Section 9.

 

9.2.
                           The term “Common
Elements Operating Costs”  means any and
all actual out-of-pocket expenses incurred by Landlord in operating the Common
Elements including without limitation, (i) payment for personal property
taxes and property insurance for the Common Elements, (ii) the costs of
lighting, painting, maintaining, repairing and replacing the common pylon signs
and (iii) the costs incurred by Landlord, if any, for maintenance of the
storm water management system and common lines thereto.

 

9.3.                              The Tenant’s proportionate share of the actual Common Elements Operating Costs
shall be the percentage that the square footage of the Property bears to the
total square footage of the Commercial Center, which will be calculated when
Landlord’s Engineer determines the actual square footage of the Property in
accordance with the granting clause on page 1 of this Lease and memorialized
in the Amendment. Within one hundred and twenty (120) days after the end of
each calendar year, Landlord shall furnish Tenant with a statement (in
reasonable detail) of the actual Common Elements Operating Costs incurred by
Landlord or its assignees during such prior calendar year prepared in
accordance with sound accounting practices. Tenant shall pay its proportionate
share of the actual Common Elements Operating Costs within thirty (30) days
after receipt of such statement.

 

10

 

9.4.                              On fifteen (15)
days written notice and during normal business hours at Landlord’s place of
business, Tenant shall have the right to audit, at Tenant’s cost, the Landlord’s
books and records for the immediately preceding calendar year to verify the
actual Common Elements Operating Costs. Any errors disclosed by the review
shall be promptly corrected by Landlord; provided,
however, that if Landlord disagrees with any such claimed errors,
Landlord shall have the right to cause another review to be made by an auditor
of Landlord’s choice and at Landlord’s sole expense. In the event the results
of the review of records (taking into account, if applicable, the results of
any additional review caused by Landlord) reveal that Tenant has overpaid
obligations for a preceding period, the amount of such overpayment shall be
credited against Tenant’s subsequent installment(s) of Annual Rent,
Additional Rent or other payments next coming due to Landlord under the Lease.
In the event that such results show that Tenant has underpaid its obligations
for a preceding period, the amount of such underpayment shall be paid by Tenant
to Landlord within thirty (30) days after Tenant’s receipt of Landlord’s demand
therefor. In the event any such audit shall reveal an overcharge to Tenant in
excess of ten percent (10%), in the aggregate, of the actual amount that should
have been charged to Tenant for the subject year, Landlord shall reimburse
Tenant for the reasonable cost of such audit and the overcharge within thirty
(30) days after demand.

 

10.                               Taxes and Assessments.

 

10.1.                        During the Term, Tenant shall bear, pay and discharge all real estate
taxes, special and benefit assessments, minor privilege charges, metropolitan
district charges and other public charges levied or imposed by any governmental
agency upon or with respect to ownership, use or occupancy of the Property
(including, without limitation, the land and Tenant Improvements on the
Property).

 

10.2.                        If at any time during the Term of this Lease under the laws of the
United States, State of Maryland, or any political subdivision thereof in which
the Property are situated, a tax or excise on rent or any other tax, however
described, is levied or assessed by any such political body against Landlord on
account of rentals payable to Landlord hereunder, such tax or excise shall be
considered for the purpose of this Lease a real property tax. In addition, in the event that real estate taxes are withdrawn, in whole
or in part, and any substitute tax is made therefore, such tax shall in any
event for the purpose of this Lease be considered a real estate tax, regardless
of the source from which it is collected.

 

10.3.                        In the event the taxing authorities include in such taxes the value of
any machinery, equipment, fixtures, inventory or other personal property or
assets of Tenant, Tenant agrees to pay before delinquency, the entire amount of
the taxes attributable to such items in addition to, but not in duplication of,
the taxes referred to above.

 

10.4.                        All sums payable by Tenant under this Section 10 shall be paid at
least thirty (30) days prior to accrual of interest or penalty for nonpayment
and Tenant shall furnish Landlord with evidence of payment in the form of
official tax receipts promptly after payment. In any case in which Tenant
contests in good faith any such imposition Tenant may defer payment to the
extent that it is necessary and legally possible to defer the same in order to
make such contest and diligently pursue the same, but in such event it shall be
a condition of Tenant’s

 

11

 

privilege
to defer any payment, that Tenant shall, if so requested by Landlord, furnish
Landlord, with a bond, reasonably satisfactory to Landlord as to surety, in an
amount and upon such conditions as shall reasonably be necessary to protect the
interest of Landlord against any loss or impairment resulting from such delay.

 

10.5.                        The parties shall take such reasonable action as may be necessary or
appropriate in order that proposed assessment notices and separate tax bills
for the Property are sent by taxing authorities directly to Tenant, including,
if necessary, a designation of Tenant’s address as address of record for the
owner for tax assessment and billing purposes. Tenant shall promptly furnish to
Landlord copies of all such proposed assessment notices and separate tax bills
that Tenant receives from the taxing authorities. Tenant shall have the right
to contest the validity and/or seek a reduction of said assessment at Tenant’s
sole cost and expense. Tenant shall indemnify Landlord, for the amount of any
interest, penalty and additional cost (including reasonable attorney’s fees)
payable by Landlord as a result of Tenant’s contest of the validity of or
attempt to reduce such assessment. Tenant shall have the right to institute
such proceedings in the name of the Landlord as Tenant may deem necessary to
contest the validity or seek a reduction of said assessment; provided that, if it
is necessary to institute said proceedings in the name of the Landlord, the
Landlord shall be given as much prior written notice of said proceedings as
reasonably practicable. Landlord will, at Tenant’s sole cost and expense,
execute and deliver to Tenant such documents and/or information as Tenant may
reasonably require in connection with Tenant’s contest of the validity of or
attempt to reduce said assessment. Any refunding resulting from a contest by
Tenant (as well as any refund resulting from proceeding instituted by
Landlord), shall be applied and paid first to reimburse Tenant or Landlord for
the costs and expenses of the proceeding, including reasonable attorney’s fees.
If the Property is separately assessed, the remainder of the refund shall
belong to Tenant.

 

10.6.                        Nothing contained in this Lease shall be deemed to include within the
definition of the term “real estate taxes” any tax such as inheritance, estate,
succession, gift and/or federal or state income taxes that are or may be
imposed upon Landlord.

 

11.                               Utilities.

 

11.1.                        Beginning on the date that Tenant enters the
Property for construction of Tenant Improvements, Tenant shall pay, when due,
all hook-up and consumption charges for all utility services furnished to the Property, including, but without limitation,
heat, air conditioning, gas, electricity and telephone, which services shall
all be separately metered to Tenant (at its cost). Tenant shall, at its cost,
install and use the utilities serving the Property in accordance with the rules and
regulations of the public or private utility company or the governmental agency
supplying the same. Tenant shall not be compelled to hook-up and use any
utility merely because it is available, provided Tenant identifies in its Plans
which utilities Tenant desires to serve the Property.

 

11.2.                      Landlord shall not be liable to Tenant for damages because of
interruptions in storm water management or any other utilities unless such
interruption is due to the negligent or willful act of Landlord, its employees,
agents, contractors, or subcontractors, and Tenant shall not be entitled to
claim a constructive eviction due to such interruption; but

 

12

 

Landlord
shall proceed with reasonable diligence to restore or cause to be restored such
service to the extent that it is within Landlord’s control to do so.

 

12.                               Maintenance.

 

At Tenant’s sole cost,
Tenant shall keep and maintain the entire Property in good condition and
repair. All garbage and trash shall be stored in trash enclosures on the Property
until removed. Tenant shall, at its expense, regularly remove Tenant’s garbage
and trash. Notwithstanding anything contained in this Lease to the contrary, if
Tenant refuses or neglects to repair all or any portion of the Property and
Tenant Improvements as required hereunder and to the reasonable satisfaction of
Landlord within thirty (30) days following Landlord’s written notice, Landlord
may make such repairs without liability to Landlord for any loss or damage that
may accrue to Tenant’s merchandise, fixtures or other property, or to Tenant’s
business by reason thereof, and upon completion thereof, Tenant shall pay
Landlord’s reasonable costs for making such repairs plus twenty percent (20%)
for overhead upon presentation of a bill therefore, as Additional Rent.
Landlord shall not be required to make any repairs or improvements of any kind
to any portion of the Property.

 

13.                               Alterations.

 

After the Tenant
Improvements have been completed in accordance with the Plans, Tenant shall not
thereafter make any alterations, additions, or improvements affecting
structural or support elements of or in the Building or affecting any utility
systems serving the Property or other parts of the Property without Landlord’s
prior written approval, which approval shall not be unreasonably withheld or
delayed. Any alterations, additions, or improvements by Tenant that are
permitted hereunder or thereafter approved by Landlord shall be installed at
Tenant’s sole cost and will be performed in compliance with all applicable
laws, rules and regulations and the Declaration and, except as otherwise
expressly set forth herein, at the end of the Term or sooner expiration of this
Lease, become the property of Landlord and remain upon the Property.

 

14.                               Trade Fixtures.

 

All furniture, counters,
business machinery, banking equipment (regardless of the manner of
installation), vaults, if any, and interior removable partitions placed upon
the Property during the Term, shall be considered as chattels (for subsequent
removal purposes) and shall not become part or parcel of the real property,
thereby permitting the same to be removable by the Tenant at the termination of
this Lease. Any damage caused by any such removals shall be repaired by Tenant.
Upon any termination or expiration of this Lease, all Tenant Improvements
attached to the Property other than the above (which shall be the property of
the Tenant) shall become the property of Landlord.

 

15.                               Signs.

 

Subject
to the Declaration and all applicable governmental approvals, Tenant shall be
entitled to install and maintain on the Property, at its cost and expense,
permanent

 

13

 

professionally
prepared signs containing Tenant’s trade name or logo so long as such signs are
attached to the building now or hereafter constructed on the Property. The
foregoing notwithstanding, Tenant’s sign plans for the Property are attached
hereto as Exhibit D. Tenant may, if permissible under applicable
governmental sign regulations, install directional signs on the Property and a
corporate - standard environmental surround for each of Tenant’s automatic
teller machines (“ATM”).  Tenant shall
further have the right to Tenant’s proportionate share of the signage area of
the Common Elements pylon sign within the Commercial Center, subject to any
governmental requirements and approvals for purposes of the pylon sign area.
Tenant’s proportionate share shall be a fraction, the numerator of which is the
square footage of the Property and the denominator of which is the square
footage of the Commercial Center. Each tenant within the Commercial Center,
including Tenant, shall maintain its own sign box on such pylon sign, and
Landlord shall maintain the remainder of the pylon sign as part of the Common
Elements.

 

16.                               Landlord’s Access.

 

Landlord
and its duly authorized representatives may enter the Property upon reasonable
advance notice to Tenant (unless an emergency exists) and subject to Tenant’s
security requirements, to inspect the Property, to rectify defaults of Tenant
pursuant to the rights granted to Landlord under Section 28 (but only
after Tenant has failed to commence and diligently pursue a cure of the default
within any applicable cure period granted elsewhere in this Lease), and to
repair any Common Elements serving other parts of the Property; provided,
however, that any such entry by Landlord and its representatives
shall be done in such a manner so as to not unreasonably interfere with the
conduct of Tenant’s business operations on the Property or compromise security
of the Property. During the six (6) months prior to the expiration of the
Term, Landlord may exhibit the Property and Tenant Improvements to prospective
tenants or purchasers, and place upon the same the usual notices “To Let” or “For
Sale” which notices Tenant shall permit to remain thereon without molestation.
Landlord shall promptly restore any disturbance to the Property caused by any
work performed by Landlord on the Property. Landlord may bring upon the
Property all things reasonably necessary to perform any work done in the
Property pursuant to this Section 16. Nothing herein contained shall be
deemed or construed to impose upon Landlord any obligation or responsibility
whatsoever for the  care, maintenance or repair
of the Property, except as otherwise specifically provided in this Lease.

 

17.                               Rules and Regulations. Tenant further warrants,
represents, covenants, and agrees to:

 

17.1.                        Keep the
Property in a neat and clean condition;

 

17.2.                        Pay before
delinquency any and all taxes, assessments and public charges levied, assessed,
or imposed upon the Property, Tenant’s business or upon Tenant’s fixtures,
furnishings or equipment in the Property and pay when and as due all license
fees, permit fees and charges of a similar nature for the conduct by Tenant or
any permitted subtenant of any business or undertaking authorized hereunder to
be conducted in the Property;

 

14

 

17.3.                        Not permit the accumulation (unless in concealed metal containers) or
burning of any of Tenant’s rubbish or garbage in, on or about any part of the
Property;

 

17.4.                        Observe all other reasonable rules and regulations established by
Landlord for all tenants in the Property from time to time; provided that (i) Tenant shall be given
at least five (5) days’ notice thereof, (ii) such rules and
regulations shall be uniformly applicable to all tenants in the Commercial
Center, and (iii) Landlord shall use reasonable efforts to enforce the rules and
regulations in respect of all tenants of the Commercial Center;

 

17.5.                        Comply with and observe all existing and future covenants of record
that affect or are applicable to the or Property and/or the Common Elements,
including, without limitation, the covenants, conditions and restrictions contained
in the Declaration;

 

17.6.                        Not use the parking areas, sidewalks adjacent to or any other space
outside the Building for display, sale, storage or any other similar
undertaking; provided that such
limitation shall not affect the use of the drive-in area, the night depository,
and the ATM’s for their intended purposes;

 

17.7.                        Not use any advertising medium or sound devices inside the Building
that may be heard outside the Property, or permit any objectionable odors to
emanate from such improvements; provided
that such limitation shall not affect the use of the drive-in area,
the night depository, and the ATM’s for their intended purposes;

 

17.8.                        Not use the plumbing facilities in the Property for any purpose other
than that for which they were constructed, or dispose of any foreign substances
therein, whether through the utilization of “garbage disposal” units or
otherwise;

 

17.9.                        Not use for any purpose all or any portion of the roof or exterior
walls of the Property other than for Tenant’s signs as provided in this Lease
and communications equipment, including antennae or satellite dishes; and

 

17.10.                  Not place any paper or cardboard or other temporary signs on the
exterior of the improvements unless any such temporary signs are professionally
done and neat in appearance.

 

18.                               Indemnification.

 

18.1.                        Tenant shall defend, indemnify and save Landlord harmless from and
against any and all claims, actions, demands, damages, liability and expenses
(including reasonable attorney’s fees) for injury to the property of others and
injury or death of persons which occurs on any portion of the Property or is
caused by or arises (i) out of or in connection with Tenant’s use or
occupancy of the Property or any negligent act or omission of Tenant, its
agents, employees, servants or contractors, or (ii) out of breach by
Tenant of any term, covenant or condition of this Lease to be performed or
observed by Tenant. Tenant shall not be liable, however, for any claims,
actions, demands, damages, liability and expenses (including

 

15

 

reasonable
counsel fees) described in the preceding sentence that result from the
negligence of Landlord, its agents, employees, servants, or contractors.

 

18.2.                      Landlord shall
defend, indemnify and save Tenant harmless from and against any and all claims,
actions, demands, damages, liability and expenses (including reasonable
attorney’s fees) for injury to the property of others and injury or death of
persons which is caused by or arises (i) out of or in connection with the
operation or maintenance by Landlord of the Common Elements, or by any
negligent act or omission of Landlord, its agents, employees, servants or
contractors, or (ii) out of breach by Landlord of any term, covenant or
condition of this Lease to be performed or observed by Landlord. Landlord shall
not be liable, however, for any claims, actions, demands, damages, liability
and expenses (including reasonable counsel fees) described in the preceding
sentence that result from the negligence of Tenant, its agents, employees,
servants, or contractors.

 

19.                               Insurance and Casualty.

 

19.1.                      Property
Insurance. During the Term, Tenant shall, at its expense, keep
in force insurance on the Tenant Improvements, whether now or hereafter
constructed, for their full insurable value (written on a 100% replacement cost
basis), and covering against all risks. Such policy shall include Builder’s
Risk coverage in an amount equal to the total cost of construction with respect
to the construction contemplated by Tenant’s Plans. Such policy shall name
Landlord as an additional insured as its interests may appear.

 

19.2.                      Restoration
After Casualty Loss.

 

(a)                                  In the event of
casualty damage to the Tenant Improvements (excluding any common area on the
Property), Tenant shall proceed diligently to restore or cause to be restored
the damaged Tenant Improvements without any abatement in Annual Rent. Such
restoration shall be at Tenant’s sole cost and shall not be limited to the
amount of insurance proceeds recovered by Tenant. Tenant shall be entitled to
all insurance proceeds for restoration of the Tenant Improvements; provided that Tenant shall diligently
repair, restore and reconstruct the Tenant Improvements to substantially the
same condition existing prior to such casualty. If Tenant does not commence the
restoration of the Tenant Improvements as herein required within one hundred
twenty (120) days after the date of casualty, and otherwise diligently pursue
the completion of said restoration, then, in addition to any other rights or
remedies available to Landlord, Landlord shall be entitled to receive all
insurance proceeds and, at Landlord’s option, exercisable after thirty (30)
days’ written notice to Tenant, either (a) restore the Tenant Improvements
to the extent of insurance proceeds received, or (b) raze and demolish any
remaining Tenant Improvements and pave the Property. Notwithstanding anything
to the contrary set forth in this Lease, if the Tenant Improvements shall be
substantially damaged or destroyed by casualty during the final year of the
Initial Term or during the final year of any Extension Term (unless Tenant has
exercised or exercises an Extension Term), then this Lease shall terminate as
of the date of such damage or destruction and all insurance proceeds shall be
paid solely to Landlord. Nothing in this Paragraph 19.2(a) shall be
construed as limiting Tenant’s rights to exercise Extension Terms.

 

16

 

(b)                                 In the event of
damage or destruction by fire or other casualty to the Common Elements,
Landlord shall proceed diligently to restore or cause to be restored the Common
Elements.

 

19.3.                      Liability Insurance of Tenant. Commencing on the date Tenant enters the Land for construction of the
Tenant Improvements and throughout the Term, Tenant shall, at its expense, keep
in force commercial general liability insurance, automobile liability
insurance, boiler liability insurance and sprinkler damage liability insurance,
covering bodily injury and property damage occurring on the Property, including
contractual liability coverage for Tenant’s indemnity obligations under this
Lease with a limit of not less than Two Million Dollars ($2,000,000.00) for
bodily injury and death and for property damage and with not less than Five
Million Dollars ($5,000,000.00) in the aggregate; which policy shall be written
on an occurrence basis. During any period of construction, the liability policy
shall include an endorsement covering construction operations. The minimum
coverage limits set forth above shall, in Landlord’s reasonable discretion, be
increased on every fifth anniversary of the Rent Commencement Date to a minimum
coverage limit that is then commercially reasonable for Tenant’s type of
business.

 

19.4.                      Liability Insurance of Landlord. During the Term, Landlord shall, at its expense, keep in force
commercial general public liability insurance, automobile liability insurance,
covering bodily injury and property damage occurring in the Common Elements,
including contractual liability coverage for Landlord’s indemnity obligations
under this Lease with a combined single limit of not less than Two Million
Dollars ($2,000,000.00) for bodily injury and death and for property damage and
with not less than Five Million Dollars ($5,000,000.00) in the aggregate; which
policy shall be written on an occurrence basis. During any period of
construction, the liability policy shall include an endorsement covering
construction operations. The minimum limitation set forth above shall be increased
to a minimum limitation that is then commercially reasonable whenever Landlord
exercises its option under Section 19.3 above to require an increase in
the minimum limitation of Tenant’s liability insurance.

 

19.5.                      General Requirements. All liability insurance required to be maintained by Tenant shall name
Tenant as named insured and shall include Landlord as additional insured. All
liability insurance required to be maintained by Landlord shall name Landlord
as named insured and shall include Tenant as additional insured. All insurance
required to be maintained by either Landlord or Tenant shall contain a
provision that the insurer shall not cancel or reduce the coverage of any such
policy without endeavoring to send thirty (30) days’ prior written notice to
Landlord in case of Tenant’s insurance or to Tenant in the case of Landlord’s
insurance. If Tenant fails to keep the required insurance in force after ten (10) days’
notice from Landlord, Landlord may do so and shall be entitled to collect the
premiums therefor from Tenant as Additional Rent on demand. All insurance
policies shall be written with insurance companies licensed to do business in
the state where the Property is located having a Best Manual rating of A- or
better as to general policy holders rating and of VII or better as to financial
rating (or equivalent ratings as such ratings may be revised from time to
time). The insurance required to be maintained under this Lease may be may be
carried under a policy commonly known as a

 

17

 

“blanket
policy.” Within three (3) Business Days after the Landlord’s Delivery Date
and prior to any entry upon the Property by Tenant, its agents or contractors,
Tenant shall furnish to Landlord copies and/or certificates of the insurance
policies requires to be carried by it under this Section 19.

 

19.6.                        Workers’ Compensation Insurance. Tenant and any contractors employed or engaged by Tenant shall obtain,
keep in force and pay for workers’ compensation insurance as required by law.

 

19.7.                        Waiver of Claims. Landlord and Tenant each release the other from any loss or damage to
the property of each or property in which each may have an interest if the loss
is caused by a peril of the type or arising from any cause that the claiming
party was obligated to insure against under this Lease. Each party to this
Lease shall maintain insurance that contains provisions or endorsements that
allow the mutual waivers contained in this subsection.

 

20.                               Eminent Domain.

 

20.1.                        If the Property is condemned in whole or in part, such that the
remainder of the Property would be inadequate or unsatisfactory for the
Permitted Use as reasonably determined by Tenant (which determination shall be
made upon written notice to Landlord within thirty (30) days after the
condemning authority’s first notice of the intended taking, under the power of
eminent domain, this Lease shall terminate on the date title and possession
vests in the condemning authority. If Tenant fails to timely notify Landlord hereunder,
the right of termination will be deemed waived. As used herein, the terms “condemned”  and “condemnation”  include the
sale by Landlord to a condemning authority under threat of condemnation.
Landlord shall have the power and authority to convey the entire Landlord’s
interest in all or any part of the Property to the condemning authority without
Tenant’s joinder, any such conveyance by Landlord alone shall be deemed free
and clear of any leasehold or other interest by Tenant therein, any condemning
authority shall be entitled to rely upon the provisions of this sentence in
accepting a deed from Landlord alone. As used herein the term “condemnation
award” includes the proceeds of any sale by Landlord to a condemning authority
under the threat of condemnation.

 

20.2.                        If any condemning authority notifies Landlord of a proposed
condemnation of more than twenty-five percent (25%) of the Property not covered
by a building, or more than fifteen percent (15%) of the area of the Building
or which includes all or a substantial portion of Tenant’s drive-in lanes,
Landlord shall give Tenant written notice of the proposed condemnation together
with whatever plats and data are furnished to Landlord by the condemnor
concerning the extent of the proposed condemnation of the Property. Tenant
shall have up to thirty (30) days after the date of such notice in which to
elect to cancel this Lease, which shall be effective upon the date title and
possession vests in the condemning authority. If Tenant gives written notice of
such election within such thirty (30) days, and if the proposed condemnation is
consummated, then this Lease shall terminate entirely on the same date that
this Lease terminates as to the condemned portion of the Property under Section 20.1
above. If Tenant does not make a timely election to cancel this Lease, and the
condemnation is consummated, then Tenant shall restore the remaining Tenant
Improvements to a complete

 

18

 

architectural
unit and in such event the Annual Rent hereunder shall thereafter be reduced by
an amount that bears in the same proportion to the Annual Rent payable prior to
such condemnation as the area of the Property taken bears to the total area of
the Property prior to such condemnation.

 

20.3.                        If any portion of the Property where the common pylon signs are located
is condemned under the power of eminent domain, Landlord shall use commercially
reasonable efforts to relocate the pylon sign(s) to a reasonably suitable
alternate location within the Commercial Center.

 

20.4.                        Notwithstanding anything contained herein to the contrary, in the event
of the condemnation of all or any part of the Property, Tenant shall not be
entitled to share in any part of the condemnation award, including
consequential damages, for the taking, either for its leasehold estate or for
its rights to use any of the Common Elements, whether or not this Lease is
terminated under the provisions of this Section 20 by reason of such condemnation.
Tenant shall, however, be entitled to a portion of the award, if any,
attributable to Tenant Improvements and to any separate award obtained by
Tenant from the condemning authority for moving expenses, loss of trade
fixtures, and loss of business; provided, however, that any condemnation award
attributable to Tenant Improvements shall be amortized on a straight line basis
over a thirty (30) year period, with Landlord receiving the portion amortized
and Tenant receiving the balance.

 

20.5.                        For purposes of this Section 20, Landlord shall give Tenant prompt
written notice of any intended taking of all or any portion of the Property by
the condemning authority. Tenant shall have thirty (30) days from the receipt
of this notice to notify Landlord of its decision to terminate the Lease.

 

21.                                 Assignment and Subletting.

 

21.1.                        Except as provided in Section 21.2 below, Tenant shall not assign
this Lease or sublease all or any part of the Property, nor permit other
persons to occupy or conduct business in said Property or any part thereof, nor
grant any license, concession, management contract or franchise for all or any
part of the Property without Landlord’s prior written approval, which approval
shall not be unreasonably withheld or delayed provided that all of the
following conditions are first satisfied:

 

(a)                                  Tenant shall
not then be in default beyond any applicable notice and cure period
of any of the terms, conditions or obligations to be performed by Tenant
hereunder and shall continue to remain liable for the full and timely
performance of all of the terms and conditions hereunder as and when due.

 

(b)                                 The proposed
assignee or sublessee shall (i) submit current (within six (6) months
of the proposed assignment or subletting) financial statements certified as
accurate by its chief financial officer, reasonably acceptable to the Landlord,
and such tax returns or other financial information as Landlord may reasonably
require, establishing that the proposed assignee or sublessee has net worth and
working capital in amounts required by Landlord in its

 

19

 

sole
discretion; and (ii) execute such additional documentation, including,
without limitation, a guaranty or other form of security as may be required by
Landlord in its discretion.

 

(c)                                  The entity, organization or individual(s) to which the Property is
proposed to be assigned or sublet establishes to the Landlord’s reasonable
satisfaction, based on the criteria that the Landlord customarily applies to
prospective assignees and/or sublessees, that they have experience, reputation,
creditworthiness and business knowledge sufficient to operate the Property
consistent with what this Agreement requires. Notwithstanding the foregoing, if
the proposed assignee or sublessee is a financial institution subject to the
oversight of the FDIC (or its successor regulator), satisfaction of the
preceding paragraph (b) shall be deemed satisfied along with this
paragraph (c).

 

(d)                                 In the event of a subletting, the proposed sublessee shall acknowledge
in writing reasonably satisfactory to Landlord that the proposed sublease
between Tenant and the sublessee shall be in all respects subject and
subordinate to this Lease and that in the event the Landlord terminates this
Lease, dispossesses the Tenant or reenters the Property and/or Tenant
Improvements in accordance with the provisions of this Lease, Landlord shall
have the option to concurrently terminate the rights of the sublessee, in which
event the sublessee shall promptly and peaceably vacate the Property and
building, or the Landlord may elect to accept the sublessee, in which event the
sublessee shall immediately attorn entirely to the Landlord, except that the
Landlord shall not be liable for any previous act or omission of the Tenant as
against or bound by any prior modification of the sublease that Landlord has
not expressly consented to in writing, or by any prepayment of more than one
month’s rent by the sublessee.

 

(e)                                  The use of the Property and Tenant Improvements by the assignee or sublessee
shall be Permitted Use.

 

(f)                                    The Tenant shall pay Landlord, immediately upon receipt thereof, all
economic benefit received by the Tenant as a result of the assignment or
sublease, including without limitation the difference between (a) the rent
payable hereunder with respect to the portion of the Property and Tenant
Improvements covered by any such transfer; and (b) the rent received by
the Tenant from the assignee or sublessee, as and when each payment of rent is
paid. In accordance with this Section 21, the Tenant shall provide
Landlord with all agreements, duly executed, relating to the proposed
assignment and assumption agreement, or sublease agreement.

 

21.2.                        Except as
otherwise permitted by this Lease, any assignment by operation of law,
attachment or assignment for the benefit of creditors, shall, at Landlord’s
option, be inoperative. If Tenant is a corporation, any transfer of any of the
Tenant’s issued and outstanding capital stock or any issuance of additional
capital stock, as a result of which the majority of the issued and outstanding
capital stock or any issuance of additional capital stock, as a result of which
the majority of the issued and outstanding capital stock of Tenant is held by a
corporation, firm or person or persons who do not hold a majority of the issued
and outstanding capital stock of Tenant on the date hereof, shall be deemed a
prohibited assignment under this Section 21. If Tenant is a partnership,
any transfer of any interest in the partnership or any other change in the
composition of partnership which results in a change in the management of
Tenant

 

20

 

from
the person or persons managing the partnership on the date hereof, shall be
deemed a prohibited assignment under this Section 21. If Landlord at
anytime consents in writing to any assignment or sublease as defined in and
prohibited by this Section 21, in addition to any other consideration that
may pass between the parties in connection therewith, Tenant and any such
assignee or sublessee shall be deemed to have covenanted not to make any
further assignment or sublease contrary to the provisions of this Section 21,
and such covenants shall be deemed to have made as of the date of such consent
and shall take effect prospectively from the date thereof.

 

21.3.                        Notwithstanding anything contained in Section 21.1 or Section 21.2
to the contrary, Tenant may, at any time, without the consent of Landlord (but
subject to subsections (a) and (b) below) assign or otherwise
transfer this Lease or any portion thereof to a parent, subsidiary or affiliate
corporation or entity; or any corporation or entity resulting from the
consolidation or merger of Tenant into or with any other entity; or to any
person, firm or corporation acquiring a majority of Tenant’s issued and
outstanding capital stock or a substantial part of Tenant’s physical assets; provided, however, that in the event of
such assignment or transfer, as a condition precedent to such assignment or
transfer (a) Tenant shall not then be in default of any of its obligations
hereunder beyond any applicable notice and cure period; and (b) the
assignee shall (i) assume in writing the performance and observance of all
the terms and conditions of this Lease; (ii) continue to operate the
Property for the Permitted Use (or such other use as may be approved by
Landlord in its sole and absolute discretion) and (iii) the assignment or
proposed transfer shall have received all necessary governmental and regulatory
approvals; and provided further, however, that Tenant shall continue to remain
liable for the full and timely performance of all of the terms and conditions
under this Lease as and when due, except in the event of a merger or
consolidation in which Tenant is not the surviving entity.

 

22.                                 Mechanics’ Liens and Other Liens.

 

22.1.                        If any mechanics’ or other lien is filed against all or any part of the
Property by reason of any labor, material or service furnished or alleged to
have been furnished to Tenant in connection with construction, alteration or
repair of improvements on the Property made by Tenant, Tenant shall cause such
lien to be released of record by payment, bond or otherwise as allowed by law,
at Tenant’s expense, within ten (10) business days after the filing and
service thereof; and Tenant shall, at its expense, defend any proceeding for
the enforcement of such lien, discharge any judgment thereon and save Landlord
and any mortgagee harmless from all losses and expenses resulting therefrom
including reasonable counsel fees and other expenses incurred by Landlord and
any mortgagee, if any of them elect to defend or participate in the defense of
such proceedings. Nothing in this Section 22 or elsewhere in this Lease
shall be construed as a consent by Landlord that a mechanics’ lien for any work
authorized or contracted for by Tenant or required by this Lease may attach to
or constitute a lien against Landlord’s estate.

 

22.2.                        Tenant shall not permit the Property to be subjected to any statutory
lien or any other lien or encumbrance that might obtain priority over Landlord’s
interest in the Property or be in parity therewith by reason of any act or
omission on the part of Tenant or any

 

21

 

of
its approved licensees or subtenants or their respective agents, servants,
employees or contractors other than real estate taxes for which no interest or
penalty has yet been incurred; and in the event that any such lien attaches to
the Property, Tenant shall discharge such lien promptly by payment, bond or
otherwise as allowed by law, at its own expense, within ten (10) business
days after the filing (and service or notice) thereof.

 

23.                                 Quiet Enjoyment.

 

So long as no default exists beyond any applicable cure period, Tenant shall
have the peaceful and quiet use of the Property, subject to the terms,
covenants and conditions of this Lease, without interference with possession by
Landlord or any one claiming by, through or under Landlord.

 

24.                                 Subordination; Landlord’s Right to Mortgage;
Attornment.

 

24.1.                        Subordination;
Landlord’s Right to Mortgage. Tenant agrees to subordinate
this Lease to the lien of any first mortgage or blanket mortgage on the
Property and/or Commercial Center, as the case may be. The parties further
agree to promptly execute a Subordination, Non-Disturbance and Attornment
Agreement (“SNDA”)  in substantially the same
form as shown on the attached Exhibit E. Landlord shall
have the absolute right and/or power to mortgage or otherwise create any
security interest or other lien or encumbrance upon or affecting the Property,
Tenant’s leasehold interest therein, or any improvements on the Property or any
part thereof at any time and from time to time, and Landlord shall further have
the right and/or power to modify, extend, renew, replace, refinance or
otherwise change or effect any such mortgage, security interest, lien or
encumbrance created by Landlord pursuant to this Lease.

 

24.2.                        Non-Disturbance; Attornment. When requested by Landlord, Tenant shall promptly execute the SNDA with
any mortgagee or prospective mortgagee, or purchaser or prospective purchaser,
of Landlord’s estate in the Property, or any improvements thereon or any part
thereof at any time and from time to time.

 

25.                                 Estoppel Certificates.

 

When requested in writing by
either party to this Lease (the “Requesting
Party”),  the other party (the “Responding Party”)  shall acknowledge in writing to the Requesting Party, a mortgagee or
prospective mortgagee, a purchaser or prospective purchaser, of the Requesting
Party’s estate, that this Lease is unmodified, in full force and effect, free of defaults of the Requesting Party and free
of defenses against enforceability (or setting forth any modifications,
defaults, disclaimers of the Lease or defenses against enforceability); that
the Responding Party has no outstanding claims against the Requesting Party (or
setting forth the nature and amount of claims, if any); stating the date to
which rent has been paid and the amount of any advance rental paid; stating the
Rent Commencement Date and expiration date of this Lease; and the status of any
other obligation of the Requesting Party under or with respect to this Lease;
it being intended that any such statement may be relied upon by the Requesting
Party, any mortgagee or prospective mortgagee, or any purchaser or prospective
purchaser, of the Requesting Party’s estate.

 

22

 

26.                                 Acts of Other Tenants.

 

Landlord shall not be liable
for damage to all or any portion of the Property including, without limitation,
the Tenant Improvements, due to the negligent or intentional acts or omissions
of any other tenant, subtenant or owner within the Commercial Center or to any
condition existing on or emanating from the Commercial Center of any other
tenant or owner that is caused by such tenant or owner or their respective
agents or contractors, nor shall Tenant be entitled to an abatement of rent to
claim an actual or constructive eviction, whole or partial, permanent or temporary,
by reason of any such condition on or emanating from such other tenant’s or
owner’s property.

 

27.                                 Environmental Matters.

 

27.1.                        During the Term of this Lease, Tenant shall: (1) keep the Property
(including the surface water, ground water, and improvements to the Property)
free of any contamination by Hazardous Materials resulting from any act or
omission of Tenant; and (2) comply with all Environmental Laws in its use
and occupancy of the Property; provided, however, that Tenant shall be permitted to maintain and use on the Property Hazardous
Materials that are customarily maintained and used by businesses similar to
Tenant as long as such Hazardous Materials are maintained in appropriate
quantities and properly stored, used, disposed of and otherwise in accordance
with all applicable laws.

 

27.2.                        Tenant expressly acknowledges and agrees that it will reimburse,
defend, indemnify and hold harmless Landlord, its successors, assigns and other
parties claiming any interest in the Property, by, through or under Landlord,
from and against any and all liabilities, claims, damages, penalties,
expenditures, losses or charges (including, but not limited to, all costs of
investigation, monitoring, legal fees, remedial response, removal, restoration
or permit acquisition, diminution in value) which may, now or in the future, be
undertaken, suffered, paid, awarded, assessed, or otherwise incurred as the
result of:

 

(a)                                  any
contamination by Hazardous Materials existing on, above or under the Property
(including the Tenant Improvements), or any other property outside of the
boundary lines of the Property that results from the acts or omissions of
Tenant, its subtenants, agents, contractors, licensees or invitees (including,
but not limited to, contaminated soil, buildings, facilities and/or ground
water); and

 

(b)                                 any
investigation, monitoring, clean up, removal, restoration, remedial response or
remedial work with respect to Hazardous Materials for which Tenant would be
liable under (a) above and undertaken by or on behalf of Landlord after
Landlord has provided Tenant written notice of the need for such investigation,
monitoring, clean up, removal, restoration, remedial response or remedial work
and Tenant has failed to undertake the appropriate action within a reasonable
time.

 

27.3.                        Tenant and Landlord acknowledge and agree that the expiration or
termination of this Lease shall not and does not relieve or release either
party of any legal liability and responsibility (under common law, statute or
regulation) either would otherwise

 

23

 

have as tenant or landlord,
respectively, of the Property and Tenant Improvements under this Section 27,
whether by way of damages, penalties, remedial actions, or otherwise for any
adverse effects or consequences resulting at any time from any contamination by
Hazardous Materials of the soil, facilities, buildings and/or ground waters
which existed on, above or under the Property, or any other property outside
the boundary lines of the Property affected by Tenant’s breach of its
obligations under this Section 27 during the Term.

 

28.                                 Defaults and Remedies.

 

28.1.                        Defaults.
If Tenant

 

(a)                                  defaults in the payment of Annual Rent and Additional Rent payable
under this Lease, and such default continues for more than five (5) business
days after receipt of written notice thereof; provided that Landlord shall not
be obligated to provide written notice more than twice in any twelve (12) month
period; or

 

(b)                                 defaults in the performance or observance of any term, covenant or condition
to be performed by it hereunder that may be performed merely by the payment of
money and such default is not rectified within ten (10) days after receipt
of written notice thereof; or

 

(c)                                  shall allow any insurance policy required to be carried by it hereunder to
lapse or to be cancelled and does not cause such insurance to be replaced
within five (5) days after receipt of written notice of such lapse or
cancellation from Landlord; or

 

(d)                                 defaults in the performance or observance of any other term, covenant
or condition of this Lease on Tenant’s part to be performed or observed and
does not commence to rectify such default within thirty (30) days after written
notice thereof or does not thereafter diligently complete the rectification
thereof (provided, however, that such non-monetary default shall be cured no
later than one hundred twenty (120) days following Landlord’s notice), then, in
any of such foregoing events, Landlord may, at its option, and in addition to
any and all remedies available to it at law or in equity (i) terminate
this Lease and reenter the Property or (ii) reenter the Property without
terminating this Lease, and, using due care, assume custody and control thereof
for the purpose of protecting the Property and/or for reletting the Property as
agent for Tenant and such agency shall be deemed as a power coupled with an
interest and shall be irrevocable. In either such event Landlord shall make a
reasonable effort to relet the Property and shall be entitled to the benefit of all provisions of the
public general laws of Maryland and the public local laws and ordinances of
Harford County respecting the summary eviction of tenants in default or tenants
holding over, or respecting proceedings in forcible entry and detainer.
Notwithstanding termination and/or re-entry, Tenant shall remain liable for any
Annual Rent, Additional Rent, and damages (exclusive of consequential damages)
having accrued prior thereto and for any Annual Rent, Additional Rent, and
damages (exclusive of consequential damages) which shall become due thereafter
and shall pay Landlord for all reasonable costs and expenses, including but not
limited to, attorneys’ and brokers’ fees, commissions and expenses, paid or
incurred by Landlord in connection with: (1) obtaining possession of the
Property; (2) removal and storage of Tenant’s or other occupant’s
property;

 

24

 

(3) care,
maintenance and repair of the Property while vacant; (4) re-letting the
whole or any part of the Property; and (5) repairing, altering,
renovating, partitioning, enlarging, remodeling or otherwise putting the
Property into condition acceptable to, and reasonably necessary to obtain new
tenants.

 

28.2.                        Other Remedies. In addition to any and all remedies available to Landlord at law or in
equity, if Tenant fails to maintain any insurance required to be maintained by
Tenant under this Lease, or fails to furnish evidence of insurance renewals at
the times in this Lease required, or allows such insurance to lapse or be
cancelled, Landlord may obtain such insurance for Tenant five (5) days
following notice from Landlord, and Tenant shall reimburse Landlord for the
cost thereof promptly on demand. If Tenant defaults in the performance or observance
of any term, covenant or condition, other than the covenant to pay rent, to be
performed or observed by it under this Lease, and such default continues
without cure or commencement of a reasonable effort to cure same for more than
thirty (30) days after written notice thereof, Landlord may take action to
rectify such default on Tenant’s behalf. Landlord may rectify such default on
Tenant’s behalf immediately and without such notice if immediate action is
reasonably believed to be required in order to avoid injury or damage to other
persons or property (including Landlord’s property). Subject to Tenant’s
security requirements, Landlord may enter the Property to rectify such
defaults. All money advanced and costs and expenses incurred by Landlord in rectifying
any default (including Landlord’s reasonable attorney’s fees) together with
interest thereon at the “Prime Rate” announced from time to time by Carrollton
Bank (or such other financial institution as selected by Landlord if Carrollton
Bank does not publish or announce a prime rate) as its prime rate plus two
percent (2%) per annum from the date advanced until the date paid by Tenant,
shall be repaid by Tenant to Landlord on demand.

 

28.3.                        Payment of Costs. If Landlord files an action against Tenant to collect Annual Rent or
Additional Rent payable under this Lease or any other sum, then Tenant shall
pay all reasonable attorney’s fees and out-of-pocket costs of collection
incurred by Landlord in such action.

 

28.4.                        Waiver of Lien. Landlord expressly waives any right to a statutory landlord’s lien.
Notwithstanding anything contained in this Lease to the contrary, Landlord
shall never have any property interest in or lien on or right of distraint
against any cash, checks, notes, bonds, securities, passbook, records, or other
property held by Tenant for its customers on the Property, whether for
safekeeping or collateral, and whether in its vaults, safe deposit boxes, night
depository, or safes.

 

28.5.                        Landlord’s Default. In the event that Landlord defaults in any of Landlord’s obligations
under this Lease that affect Tenant’s use and occupancy of the Property, and
fails to cure such default within thirty (30) days after Tenant gives Landlord
notice of the Landlord’s default, then Tenant shall be entitled, but not
obligated, to cure Landlord’s default, in which event upon Tenant’s demand
Landlord shall pay Tenant the reasonable expenses incurred by Tenant in curing
Landlord’s default; provided, however, that except in the case of an emergency,
Tenant shall not make any payment or cause the performance of any act to cure
Landlord’s default without giving Landlord fifteen (15) days’ notice of Tenant’s
intention to do

 

25

 

so.
Notwithstanding the foregoing, if Landlord’s default is such that it cannot
reasonably be cured within thirty (30) days, then, provided that Landlord shall
commence to cure the default within thirty (30) days after Tenant gives
Landlord notice of the default and thereafter diligently pursues curing of the
same, Landlord shall be permitted such additional period of time as necessary
to cure the default before Tenant exercises Tenant’s remedies under this Section 28.5.

 

29.                                 Bankruptcy or Insolvency.

 

If any transfer of Tenant’s
interest in the Property created by this Lease shall be made under execution or
similar legal process, or if a petition is filed by or against Tenant to
adjudicate Tenant a bankrupt or insolvent under any federal or state law, or if
a receiver or trustee shall be appointed for Tenant’s business or property and
such appointment is not vacated within thirty (30) days, or if a petition is
filed by or against Tenant under any provision of federal or state law for a
corporate reorganization of Tenant of an arrangement with its creditors, of if
Tenant makes an assignment for the benefit of its creditors, or if in any other
manner Tenant’s interest under this Lease passes to another by operation of
law, then, in any of said events, Tenant shall be deemed to have committed a
material breach of this Lease, and Landlord may, at its option, terminate this
Lease and re-enter the Property; but notwithstanding such termination, Tenant
shall remain liable for all rent and damages, suffered or incurred by Landlord.

 

30.                                 Miscellaneous Provisions.

 

30.1.                        Notices. All notices from either party to the other under this Lease shall be
sent by telegram or Certified Mail, Return Receipt Requested, or hand-delivered
with a signed receipt. Whenever in this Lease reference is made to a notice to
be given, such notice shall be deemed to have been given when mailed, wired or
hand-delivered to the proper notice address of the party to be notified; provided that notices mailed within a time
period set forth in the Lease for giving notice shall be deemed given within
such time period, if mailed within such time period. Notices to Landlord shall
be addressed to Landlord’s Notice Address. Notices to Tenant shall be addressed
to Tenant’s Notice Address.

 

30.2.                        Successors and Assigns. This Lease and covenants, terms and conditions herein contained shall
inure to the benefit of and be binding upon Landlord, its successors and
assigns, and shall be binding upon and inure to the benefit of Tenant and its
permitted successors and assigns. As used herein the term “Tenant” includes its
permitted successors and assigns, and the term “Landlord” includes its
successors and assigns.

 

30.3.                        Effect of Termination. Except as specifically provided elsewhere in this Lease, if this Lease
is terminated for any reason other than default of Tenant, all liabilities of
the parties shall be adjusted as of the effective date of termination. Any
termination hereof by reason of a default of the Tenant shall not affect any
obligation or liability of Tenant under this Lease.

 

30.4.                        Severability. If any term, covenant or condition of this Lease or the application
thereof to any person or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Lease, or the application of such term,
covenant or

 

26

 

condition
to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant or
condition of this Lease shall be valid and be enforceable to the fullest extent
permitted by law.

 

30.5.                        Final Agreement. This Lease contains the final and entire agreement between the parties
hereto. Neither Landlord nor Tenant shall have any obligation not expressly set
forth herein; and neither party shall be bound by any promises, conditions or
representations prior to the date hereof which are not expressly set forth
therein. Any modification or amendment to this Lease shall be in writing signed
by all parties.

 

30.6.                        Governing Law. The parties agree that this Lease shall be construed in accordance with
the Laws of the State of Maryland.

 

30.7.                        Liability of Landlord. If Landlord or any successor in interest to Landlord shall be an
individual, joint venture, tenancy in common, firm or partnership, general or
limited, there shall be no personal liability on such individual, or the
members of such firm, partnership or joint venture with respect to any of the
provisions of this Lease, any obligation arising therefrom or in connection
therewith. In such event, Tenant shall look solely to the equity of the then
owner of Landlord’s interest in the Property for the satisfaction of any
remedies of Tenant in the event of a breach by the Landlord of any of its
obligations hereunder.

 

30.8.                        Brokers. Each party hereto hereby represents and warrants to the other that in
connection with the leasing of the Property, the party so representing and
warranting has not dealt with any real estate broker, agent or finder, except
for Retail Properties LLC (the “Broker”).
Landlord hereby agrees that it shall pay a commission to the
Broker according to a separate agreement. Each party shall indemnify and hold
harmless the other party from and against any claims for brokers or other
commissions arising by reason of a breach by such party of the foregoing
warranty.

 

30.9.                        No Joint Venture. Nothing contained in this Lease shall be deemed to give Landlord any
interest, control or discretion in the operation of Tenant’s business on the
Property and nothing contained in this Lease shall be construed to be or to
create a partnership or joint venture between Landlord and Tenant.

 

30.10.                  Recording. All costs of recording this Lease, or a short form thereof, if it is
recorded (including documentary stamps and transfer taxes), shall be borne by
the party desiring recordation, notwithstanding any statute to the contrary.

 

30.11.                  Force Majeure. If Landlord or Tenant shall be delayed, hindered in or prevented from
the performance of any act or obligation required under this Lease (other than
Tenant’s obligation to pay Annual Rent and Additional Rent hereunder) by reason
of acts of God, strikes, lockouts, failure of power or utilities, fire,
vandalism, accident, flood, other casualty, riot, insurrection, civil
commotion, sabotage, explosion, war, natural or local emergency, or other
reasons of a similar nature not within the control of the delayed party, then
performance of such act or obligation shall be excused for the period of the
delay and the period for the performance of any such act or obligation shall be
extended for the period equivalent to

 

27

 

the
period of such delay. Notwithstanding the foregoing, the provisions of this Section 30.11
shall not automatically extend the time period for Tenant’s termination right
provided in Section 4.4.

 

30.12.                  Landlord’s Consent. Unless otherwise provided in this Lease, whenever Landlord’s consent,
approval or other action is required under the terms of this Lease, such
consent, approval or action shall be subject to Landlord’s sole judgment and
shall be delivered in writing.

 

30.13.                  Time of Essence. Time is of the essence with respect to the performance of every
covenant and condition of this Lease.

 

30.14.                  Waiver of Jury Trial. Landlord and Tenant irrevocably waive the respective rights to trial by
jury in any action, proceeding or counterclaim brought by either against the
other (whether in contract or tort) on any matter arising out of or relating in
any way to this Lease, the relationship of Landlord and Tenant or Tenant’s use
or occupancy of the Property.

 

Signatures on Next Page

 

28

 

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.

 

 

	
  ATTEST:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HICKORY
  CROSSING, LLC,

  
	
   

  	
   

  	
  a
  Maryland limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Susan Berndt

  	
   

  	
  By:

  	
  /s/
  Kirk A. Salvo

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name:
  Kirk A. Salvo

  	
   

  
	
   

  	
   

  	
   

  	
  Title:
  Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CARROLLTON
  BANK, a Maryland state 

  chartered commercial bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Allyson Cwiek

  	
   

  	
  By:

  	
  /s/ Robert A. Altieri

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  President
  & CEO

  
						

 

29

 

 

	
  STATE
  OF MARYLAND

  	
  )

  
	
   

  	
  ) SS:

  
	
  CITY/COUNTY
  OF Baltimore

  	
  )

  

 

I HEREBY CERTIFY that on this 4th  day of November, 2003,
before me, the undersigned officer, personally appeared Kirk A. Salvo, who acknowledged
himself to be the Manager of Hickory Crossing, LLC, a limited liability
company, and that he, in such capacity, being authorized to do so, executed the
foregoing instrument for the purposes therein contained, by signing the name of
the partnership, as Manager.

 

IN
WITNESS WHEREOF I hereunto set my hand and Notarial Seal.

 

	
   

  	
   

  	
  /s/ Susan Berndt

  	
  

  
	
   

  	
   

  	
  Notary Public

  
	
  My
  Commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.10.06

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  STATE
  OF MARYLAND

  	
  )

  
	
   

  	
  ) SS:

  
	
  CITY/COUNTY OF Baltimore

  	
  )

  

 

I HEREBY CERTIFY that on this 28th day of October, 2003, before me, the undersigned
officer, personally appeared Robert A. Altieri, who
acknowledged himself to be the President of Carrollton Bank, a Maryland state
chartered commercial bank, and that he, in such capacity, being authorized to
do so, executed the foregoing instrument for the purposes therein contained, by
signing the name of the bank, as Senior Vice President.

 

IN
WITNESS WHEREOF I hereunto set my hand and Notarial Seal.

 

	
   

  	
   

  	
  /s/
  Ivanna Teluk

  
	
   

  	
   

  	
  Notary
  Public

  
	
   

  	
   

  	
   

  
	
  My Commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  July 1, 2006.

  	
   

  	
   

  

 

30

 

LIST OF EXHIBITS

 

	
  Exhibit A

  	
  PLAT

  
	
   

  	
  (With
  Commercial Center Outlined in Green and Property outlined in Red)

  
	
   

  	
   

  
	
  Exhibit A-1

  	
  CONCEPTUAL
  DEVELOPMENT PLAN 

  
	
   

  	
   

  
	
  Exhibit A-2
  

  	
  FINAL
  DEVELOPMENT PLAN

  
	
   

  	
   

  
	
  Exhibit B
  

  	
  LANDLORD’S LAND SITE IMPROVEMENTS

  
	
   

  	
   

  
	
  Exhibit C

  	
  FORM OF DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

  
	
   

  	
   

  
	
  Exhibit D 

  	
  TENANT’S SIGN PLANS

  
	
   

  	
   

  
	
  Exhibit E

  	
  FORM OF
  SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

  

 

31

 

EXHIBIT
A

 

PLAT

 

 

EXHIBIT B

 

LANDLORD’S LAND SITE IMPROVEMENTS

 

	
  1.

  	
  Landlord will rough grade the Property.

  
	
   

  	
   

  
	
  2.

  	
  Landlord will cause the construction of public water and sewer lines
  (excluding Tenant’s water meter) serving the Property, and
  conduits for underground electric and telephone lines all to within five feet
  (5’) of the boundary of the Property.

  

 

32Exhibit 10.20

 

	
   

  	
  received

  
	
   

  	
  1.19.06

  

 

GROUND LEASE

 

BETWEEN

 

SCOTTS CORNER LLLP

as Landlord

 

and

 

CARROLLTON BANK

as Tenant

 

Date: January 13, 2006

 

Premises:

 

10301 York Road

Cockeysville, Maryland 21030

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
  1

  
	
  2A.

  	
  Flood Plan and Site Plan
  Submission; Regulatory Approval

  	
  4

  
	
  2B.

  	
  Site Environmental and
  Soil Studies

  	
  5

  
	
  3.

  	
  Lease Term

  	
  5

  
	
  4.

  	
  Landlord’s Construction
  Obligations

  	
  6

  
	
  5.

  	
  Tenant’s Construction
  Obligations

  	
  6

  
	
  6.

  	
  Use of Premises

  	
  7

  
	
  7.

  	
  Rent

  	
  7

  
	
  8.

  	
  Repair and Maintenance
  Obligations

  	
  8

  
	
  9.

  	
  Taxes and Assessments

  	
  8

  
	
  10.

  	
  Utilities

  	
  9

  
	
  11.

  	
  Alterations

  	
  9

  
	
  12.

  	
  Trade Fixtures

  	
  9

  
	
  13.

  	
  Signs

  	
  10

  
	
  14.

  	
  Landlord’s Access

  	
  10

  
	
  15.

  	
  Rules and Regulations

  	
  10

  
	
  16.

  	
  Indemnification

  	
  11

  
	
  17.

  	
  Insurance and Casualty

  	
  12

  
	
  18.

  	
  Eminent Domain

  	
  13

  
	
  19.

  	
  Assignment and Subletting

  	
  14

  
	
  20.

  	
  Mechanics’ Liens and Other
  Liens

  	
  15

  
	
  21.

  	
  Quiet Enjoyment

  	
  15

  
	
  22.

  	
  Landlord’s Right to
  Mortgage; Attornment

  	
  15

  
	
  23.

  	
  Estoppel Certificates

  	
  16

  
	
  24.

  	
  Environmental Matters

  	
  16

  
	
  25.

  	
  Defaults and Remedies

  	
  18

  
	
  26.

  	
  Bankruptcy or Insolvency

  	
  20

  
	
  27.

  	
  Miscellaneous Provisions

  	
  20

  

 

 

GROUND LEASE

 

THIS
LEASE (the “Lease”), dated January 13, 2006
(the “Effective Date”), is made and entered into by and between SCOTTS CORNER LLLP, a Maryland limited
liability limited partnership, f/k/a Scotts Corner Limited Partnership (the “Landlord”), having an  office at 3457 Sweet Air Road,
Phoenix, Maryland 21131, and CARROLLTON BANK,
a Maryland state chartered commercial bank (the “Tenant”) having an office at 344 N. Charles Street, Baltimore, Maryland
21201, Attn: Robert A. Altieri, President.

 

INTRODUCTORY STATEMENT

 

Landlord is the owner of two (2) adjacent
parcels of land (the “Land”) containing approximately 0.6650 acres and a
triangular parcel containing approximately 460 square feet, located at the
northeast corner of Scott Adam Road at its intersection with York Road (Tax
Account Nos 08-19-011392 and 21-00-011592), Cockeysville, Maryland, as more
particularly described on Exhibit A. Landlord desires to lease the Land to
Tenant and Tenant desires to rent the Land from Landlord, subject to and in
accordance with the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, for good and valuable consideration, Landlord leases to Tenant and
Tenant rents from Landlord the Land during the Term (as hereinafter defined) of
this Lease, and any renewal or extension thereof. This Lease is made upon the
following terms and conditions:

 

1.             Definitions. As used in this Lease, the following terms are
defined as follows:

 

1.1.          Additional Rent  – see Section 7.2.

 

1.2.          Annual Rent –

 

	
  Applicable Portion of Initial Term

  	
   

  	
   

  	
   

  	
  Monthly

  Installment

  	
   

  
	
  Beginning

  	
   

  	
  Ending

  	
   

  	
  Annual Rent

  	
   

  	
  (Annual ÷ 12)

  	
   

  
	
  Year 1

  	
   

  	
  Year
  5

  	
   

  	
  $

  	
  140,000.00

  	
   

  	
  $

  	
  11,666.66

  	
   

  
	
  Year 6

  	
   

  	
  Year
  10

  	
   

  	
  $

  	
  157,500.00

  	
   

  	
  $

  	
  13,125.00

  	
   

  
	
  Year 11

  	
   

  	
  Year
  15

  	
   

  	
  $

  	
  177,187.50

  	
   

  	
  $

  	
  14,765.62

  	
   

  
	
  Year 16

  	
   

  	
  Year
  20

  	
   

  	
  $

  	
  199,335.94

  	
   

  	
  $

  	
  16,611.33

  	
   

  

 

	
  Renewal
  Terms, if exercised

  	
   

  	
  Annual Rent

  	
   

  	
  Monthly

  Installment

  (Annual ÷ 12)

  	
   

  
	
  First Renewal Term

  	
   

  	
  $

  	
  224,252.93

  	
   

  	
  $

  	
  18,687.74

  	
   

  
	
  Second Renewal Term

  	
   

  	
  $

  	
  252,284.55

  	
   

  	
  $

  	
  21,023.71

  	
   

  
	
  Third Renewal Term

  	
   

  	
  $

  	
  283,820.12

  	
   

  	
  $

  	
  23,651.68

  	
   

  
	
  Fourth Renewal Term

  	
   

  	
  $

  	
  319,297.64

  	
   

  	
  $

  	
  26,608.14

  	
   

  

 

 

1.3.          Commencement
Date - the date of execution of this Lease by Landlord and Tenant.

 

1.4.          Construction
Period – the period during which Tenant shall have exclusive possession of the
Land and shall commence erection of the Tenant Improvements.

 

1.5.          Environmental
Laws – all applicable federal, state, or local law, ordinance, or regulation,
including, but not limited to the Resource Conservation and Recovery Act, the
Toxic Substances Control Act, the Comprehensive Environmental Response,
Compensation and Liability Act, the Clean Air Act, and the Clean Water Act that
regulate any hazardous or toxic substance, material, or waste and amendments
thereto.

 

1.6.          Hazardous
Materials – any hazardous or toxic substance, material, or
waste, including, but not limited to, those substances, materials, and wastes
listed in the United States Department of Transportation Hazardous Materials
Table (49 CFR 172.101) or by the Environmental Protection Agency as hazardous
substances (40 CFR Part 302) and amendments thereto, or such substances,
materials and wastes regulated under any Environmental Laws.

 

1.7.          Initial
Term – See Section 3.1.

 

1.8.          Land – as defined in
the Introductory Statement.

 

1.9.          Landlord’s
Delivery Date - the date on which Landlord delivers the Land to
Tenant with the Landlord’s Improvements removed in accordance with this Lease.

 

1.10.        Landlord
Improvements - those improvements, consisting of gas pumps,
underground fuel tanks, gas station building, car wash building and other
permanent improvements situate on the Land, which are to be removed by Landlord
prior to commencement of the Construction Period.

 

1.11.        Landlord’s
Notice Address – the following address for notices or such other
address as Landlord may designate in writing from time to time:

 

c/o DJF, Inc.

P.O. Box 264

Phoenix,
Maryland 21131

 

With
a copy to:

 

Eugene
W. Cunningham, Jr., Esquire

Royston,
Mueller, McLean & Reid, LLP

102
West Pennsylvania Avenue, Suite 600

Towson,
Maryland 21204-4575

 

2

 

1.12.        Landlord’s
Payment Address – the following address for rent payments or such
other address as Landlord may designate in writing from time to time:

 

c/o DJF, Inc.

P.O. Box 264

Phoenix,
Maryland 21131

 

1.13.        Permitted Use – commercial
banking and any business permitted by the Regulatory Authorities.

 

1.14.        Permitting
Period — the period during which Tenant shall obtain the
permits necessary to construct the Tenant Improvements.

 

1.15.        Premises - the Land and
the Tenant Improvements.

 

1.16.        Regulatory
Approval Period - the period during which Tenant shall obtain the
necessary approvals from applicable governmental regulatory bodies in order to
operate a branch bank office at the Premises.

 

1.17.        Regulatory
Authorities – those governmental authorities having jurisdiction
and regulatory power over Tenant’s operations.

 

1.18.        Rent
Commencement Date - the earlier to
occur of

 

1)             the end of the Construction
Period; or

 

2)             the date Tenant opens for
business with the public at the Premises.

 

1.19.        Renewal
Term – See Section 3.2.

 

1.20.        Rent - the payment
of the Annual Rent, Interim Rent and Additional Rent specified in this Lease.

 

1.21.        Tenant
Improvements - the one-story masonry building, building sidewalks
and curbs, building lighting fixtures and conduits, utility connections, paving
and all improvements to be contracted by Tenant on the Land for the Permitted
Use, in accordance with plans and specifications therefor approved in writing
by Landlord (which approval shall not be unreasonably withheld or delayed) and
in accordance with the other terms and conditions of this Lease.

 

1.22.        Tenant’s
Notice Address – the following address for notices or such other
address as Landlord may designate in writing from time to time:

 

Carrollton
Bank

344
N. Charles Street

Baltimore,
Maryland 21201

Attn:
Robert A. Altieri, President

 

3

 

With
a copy to:

 

Rogers,
Moore & Rogers

6
S. Calvert Street

Baltimore,
Maryland 21202

Attn:
William C. Rogers, Jr., Esquire

 

1.23.                        Term - the Initial Term or the applicable Renewal Term,
whichever is then in effect.

 

2A.          Flood Plan
and Site Plan Submission; Regulatory Approval.

 

2.1           The parties acknowledge that
Baltimore County, Maryland (the “County”) requires that Tenant submit a flood
plain study of the Land in connection with submittal of Tenant’s site plan to
begin the County plan review process. Tenant shall promptly commission the
preparation of the flood plain study (the “Flood Study”) and its site plan with
Frederick Ward Associates, Inc. (“FWA”) and provide both to County within
sixty (60) days after the Effective Date. In the event that the County fails to
approval Tenant’s site plan as a result of any Flood Study issues and, as a
result thereof, Tenant elects to terminate this Lease, then Landlord shall
reimburse Tenant the cost of the Flood Study (not exceeding $12,500.00),
provided FWA issues Landlord a letter confirming that Landlord has sole
ownership rights to and use of the Flood Study. In any event, if the County
fails to approve Tenant’s site plan and Tenant does not, in its exercise of its
sole discretion, modify the site plan to obtain County approval, this Lease
shall terminate promptly upon the issuance of the County’s disapproval.

 

2.2           Additionally, as part of
Tenant’s submission of its site plan, Tenant will cause an ALTA or boundary
survey of the Land to be prepared (the “Land Survey”). Upon the filing of
Tenant’s site plan and Flood Study with the County and provision of a copy of
the final Land Survey to Landlord, Landlord shall reimburse Tenant the cost of
the Land Survey (not exceeding $15,000.00), provided FWA issues Landlord a
letter confirming that Landlord has co-ownership rights to and use of the Land
Survey.

 

2.3           If the County does not
approve Tenant’s site plan on or before December 1, 2006, then either
party may terminate this Lease prior to issuance of County approval upon
written notice to the other.

 

2.4           Upon County approval of
Tenant’s site plan, Tenant, at its sole cost and expense, shall file for and
thereafter diligently pursue Regulatory Approval. Tenant shall notify Landlord
in writing (the “Regulatory Approval Notice”) promptly after Tenant receives
Regulatory Approval. If Regulatory Approval is denied, this Lease shall be of
no further force and effect, and neither party shall have any further rights or
obligations hereunder. Furthermore, If Tenant has not received Regulatory
Approval within ninety (90) days after Tenant’s request is submitted, then
either party may terminate this Lease prior to receipt of Regulatory Approval
upon written notice to the other.

 

4

 

2.5           Tenant shall provide
Landlord with regular progress reports regarding Tenant’s pursuant of the
matters described in Sections 2.1, 2.2, 2.3 and 2.4 including providing the
dates of filing of documents with the County and of the request for Regulatory
Approval, together with copies of all filing documents. Tenant shall also provide
copies of all correspondence from the County and Regulatory Authorities,
promptly upon receipt. Tenant shall use its good faith, diligent efforts to
file for, seek and obtain the various approvals required for its construction
and use of the Tenant Improvements.

 

2.6           If the Land is subject to
any mortgage, deed of trust, ground lease, or other encumbrance superior to
this Lease, Tenant shall receive a non-disturbance and attornment agreement
from the mortgagee, ground lessor, or other party holding an interest in the
Premises superior to Tenant, which agreement must be in form reasonably
acceptable to Tenant. If Tenant does not receive the non-disturbance and
attornment agreement under this Section 2.6 within sixty (60) days after
the Effective Date, Tenant may terminate this Lease upon written notice to
Landlord within thirty (30) days thereafter.

 

2B.          Site, Environmental and Soil
Studies. Within sixty (60) days after the Effective Date,
Tenant shall conduct its site review (including availability of utilities),
environmental and soil studies to determine acceptability of the Land for the
Permitted Use. The Land is to be provided in its “as is “condition, without
warranty or responsibility on Landlord’s part except (i) that
Landlord shall deliver the Closure Letter in accordance with Section 4.1,
and (ii) for Landlord’s indemnification obligations under Section 24
hereof.

 

3.             Lease Term.

 

3.1           Initial
Lease Term. The initial term (the “Initial Term”) of
this Lease shall commence on the Commencement Date and shall expire at the end
of the month that is twenty (20) years after the Rent Commencement Date unless
sooner terminated in accordance with the provisions hereof. After the Rent
Commencement Date and upon Landlord’s request, Tenant shall promptly enter into
a written agreement with Landlord, mutually acceptable and in recordable form,
stipulating the Commencement Date, the Rent Commencement Date, and expiration
date of the Initial Term.

 

3.2           Renewals;
Annual Rent During Renewals. As long as (i) Tenant
is not then in monetary default of this Lease nor in non-monetary default of
this Lease beyond any applicable cure period and (ii) Tenant is occupying
a portion of the entire Premises at the time of such election, Tenant may
extend this Lease for four (4) additional periods of five (5) years
each (each a “Renewal Term”) on the same terms and conditions as
provided in this Lease (except as set forth below), by delivering written
notice of the exercise thereof to Landlord not later than nine (9) months
before the expiration of the then current Term.

 

(a)           After the last scheduled
Renewal Term hereunder, Tenant shall have no further extension options unless
expressly granted by Landlord in writing; and

 

(b)           Landlord shall lease to
Tenant the Premises in its then-current condition at the beginning of each
Renewal Term.

 

5

 

Tenant’s rights under this Section 3.2
shall terminate if (i) this Lease or Tenant’s right to possession of the
Premises is terminated, or (ii) Tenant fails to timely exercise its option
under this Section 3.2, time being of the essence with respect to Tenant’s
exercise thereof.

 

4.             Landlord’s
Construction Obligations.

 

4.1           Removal of
Tanks and Improvements. Before the Effective Date, Landlord removed
the existing gas pumps, underground fuel tanks and various other improvements
existing on the Land. The removal of the gas pumps and underground fuel tanks
were undertaken in compliance with Maryland Department of the Environment (MDE)
procedures including with the presence of an MDE official. Landlord has been
advised that a “closure and no further action required letter” (the “Closure
Letter”) will be issued. Landlord shall be responsible for obtaining the
Closure Letter. If the Closure Letter is not obtained within ninety (90) days
after the Effective Date, then Tenant may terminate this Lease prior to issuance
of the Closure Letter upon written notice to Landlord. Landlord shall not be
liable to Tenant for failure of MDE to timely issue the Closure Letter.

 

4.2           Otherwise
“AS IS” delivery. Except as provided in Section 4.1 with respect
to Landlord’s delivery of the Closure Letter, the Land shall be delivered to
Tenant in absolutely “AS IS” condition, without representation or warranty by
Landlord as to the physical features thereof in any manner whatsoever. Tenant
acknowledges that it accepts delivery of the Land in the condition specified in
this Section 4.2.

 

5.             Tenant’s
Construction Obligations.

 

5.1           General. Tenant shall
construct or cause to be constructed the Tenant Improvements in a good and
workmanlike manner. All construction by Tenant shall be done pursuant to plans
and specifications therefor prepared by a licensed architect or engineer. All
such plans and specifications for the Tenant Improvements and the contractor or
contractors engaged by Tenant to perform such work shall be subject to
Landlord’s prior written approval, which approval shall not be unreasonably
withheld or delayed. Tenant shall bear all risk of theft, loss or damage to its
personal property, including building materials stored on the Land or
incorporated into Tenant Improvements, from whatsoever cause, unless such loss
or damage is due to the negligence or willful misconduct of Landlord.

 

5.2           Permitting
Period. Tenant shall prepare, or cause to be prepared,
complete plans and specifications for the Tenant Improvements (the “Plans”) and shall submit the same to Landlord for Landlord’s approval,
which approval shall not be unreasonably withheld or delayed. If Landlord does
not respond within fifteen (15) days after Tenant’s submission of the Plans,
the Plans will be deemed approved. After Landlord and Tenant have agreed on
final plans and specifications for the building portion of Tenant Improvements
and Tenant has received the necessary County site plan approvals pursuant to Section 2.3
and the necessary Regulatory Approval pursuant to Section 2.4, Tenant
shall make application to the County for a building permit and to all other
appropriate governmental agencies, quasi-governmental agencies and utility
companies for all permits and approvals necessary to construct the Tenant
Improvements (collectively, “Tenant’s
Permits”). Tenant
shall use diligent efforts

 

6

 

to obtain the Tenant’s
Permits on or before August 1, 2007 (this is the “Permitting Period”). If
Tenant is unable to obtain Tenant’s Permits by the conclusion of the Permitting
Period, either party may terminate this Lease upon written notice to the other.

 

5.3           Construction
Period. Promptly upon issuance of Tenant’s Permits, Tenant
shall commence construction of the Tenant Improvements and use its best efforts
to complete the same within one hundred twenty (120) days after issuance of
Tenant’s Permits (this 120 day period is the “Construction Period”). Whether or
not Tenant has completed Tenant Improvements by the conclusion of the Construction
Period, the Rent Commencement Date shall begin not later than the end thereof.

 

5.4           Interim
Payments to Landlord. During the Construction Period, Tenant shall
pay interim rent to Landlord of $2,500.00 per month.

 

6.             Use of Premises.

 

6.1           Throughout the Term, Tenant
shall use the Premises solely for the Permitted Use or in the event of
assignment or sublease of the Premises (so long as Tenant remains liable under
this Lease), for any legally permitted use.

 

6.2           Upon substantial completion
of the Tenant Improvements and the obtaining of all necessary use and occupancy
permits, Tenant shall occupy the Premises and promptly open for business.

 

6.3           Tenant shall promptly comply
with all laws, rules, regulations, requirements, notices of governmental bodies
and public authorities and the reasonable recommendations of the local board of
fire underwriters rating bureau or other fire insurance rating organization for
Baltimore County, Maryland and of the Landlord’s insurers, pertaining to the
Premises, the improvements thereon or their use, occupancy or maintenance.

 

6.4           Tenant will comply with all
provisions of the Americans With Disabilities Act (the “ADA”) with respect to the Premises.

 

7.             Rent.

 

7.1           Commencing on the Rent
Commencement Date and continuing throughout the Initial Term, Tenant shall pay
Annual Rent in equal monthly installments, in advance, on the first day of each
calendar month. If the Rent Commencement Date falls on a day other than the
first day of a calendar month, then the Annual Rent for any fractional month
during the Term shall be apportioned on a daily basis based upon a thirty (30)
day month.

 

7.2           Whenever under the terms of
this Lease any sum of money is required to be paid by Tenant in addition to the
Annual Rent herein reserved, said sum shall be deemed to be additional rent (“Additional Rent”) and collectible as rent whether or not so designated. All Annual
Rent and Additional Rent shall be paid without prior demand, except as provided
otherwise by the terms of this Lease, and without any setoff, abatement or
deduction of any

 

7

 

nature whatsoever. Any
payment by Tenant of a lesser amount of Annual Rent or Additional Rent than is
then due shall be applied to such category of arrearage as Landlord may
designate irrespective of any contrary designation by Tenant and to the oldest,
most recent or other portion of the sum due as the Landlord may determine; and
Landlord’s acceptance of any such partial payment shall not be deemed an accord
and satisfaction, and shall be without prejudice to Landlord’s right to pursue
any other remedies.

 

7.3           All rent under this Lease
shall be paid to Landlord at Landlord’s Payment Address.

 

8.             Repair and
Maintenance Obligations.

 

8.1           Except for matters pertaining
to hazardous materials addressed elsewhere in this Lease, Landlord shall have
no obligation to repair, maintain or address any condition with the Land.
Except as set forth in the preceding sentence, Tenant shall be solely
responsible for the repair, maintenance and upkeep of the Land and, with
respect to the Tenant Improvements, the repair and maintenance thereof, in good
condition and repair and in compliance with all applicable governmental
regulations, for the entire Term of the Lease.

 

8.2           Without limiting the
provisions of Section 8.1, Tenant shall perform all grass cutting,
landscaping, upgrades to or replacements of the Tenant’s Improvements as may be
necessary in connection with the use and occupancy thereof and/or as may be
required to comply with all applicable governmental regulations.

 

9.             Taxes and Assessments.

 

9.1           During the Term, Tenant
shall bear, pay and discharge all real estate taxes, special and benefit
assessments, minor privilege charges, metropolitan district charges and other
public charges levied or imposed by any governmental agency upon or with
respect to ownership, use or occupancy of the Premises, including taxes on
rents (whether imposed on Landlord or Tenant), but excluding taxes identified
as income taxes.

 

9.2           All sums payable by Tenant
under this Section 9 shall be paid prior to accrual of interest or penalty
for nonpayment. With respect to real estate taxes and/or special and benefit
assessments and other charges assessed separately and directly to Tenant,
Tenant shall furnish Landlord with evidence of payment in the form of copies of
the paid receipts promptly after payment. In any case in which Tenant contests
in good faith any such imposition Tenant may defer payment to the extent that
it is necessary and legally possible to defer the same in order to make such
contest and diligently pursue the same, but in such event it shall be a
condition of Tenant’s privilege to defer any payment, that Tenant shall, if so
requested by Landlord, furnish Landlord, with a bond, reasonably satisfactory
to Landlord as to surety, in an amount and upon such conditions as shall
reasonably be necessary to protect the interest of Landlord against any loss or
impairment resulting from such delay.

 

9.3           Upon the Rent Commencement
Date, the parties shall take such action as may be necessary or appropriate in
order that proposed assessment notices and separate tax bills

 

8

 

for
the Premises are sent by taxing authorities directly to Tenant, including, if
necessary, a designation of Tenant’s address as address of record for the owner
for tax assessment and billing purposes. Tenant shall promptly furnish to
Landlord copies of all such proposed assessment notices and separate tax bills
that Tenant receives from the taxing authorities. Tenant shall have the right
to contest the validity and/or seek a reduction of said assessment at Tenant’s
sole cost and expense. Tenant shall indemnify Landlord, for the amount of any
interest, penalty and additional cost payable by Landlord as a result of
Tenant’s contest of the validity of or attempt to reduce such assessment.
Tenant shall have the right to institute such proceedings in the name of the
Landlord as Tenant may deem necessary to contest the validity or seek a reduction
of said assessment; provided that, if
it is necessary to institute said proceedings in the name of the Landlord, the
Landlord shall be given prior written notice of said proceedings. Landlord
will, at Tenant’s sole cost and expense, execute and deliver to Tenant such
documents and/or information as Tenant may reasonably require in connection
with Tenant’s contest of the validity of or attempt to reduce said assessment.

 

9.4           Nothing contained in this
Lease shall be deemed to include within the definition of the term “real estate
taxes” any tax such as inheritance, estate, succession, gift and/or federal or
state income taxes that are or may be imposed upon Landlord.

 

10.          Utilities.

 

10.1         Beginning on the date that
Tenant enters the Land for construction of the Tenant Improvements, Tenant
shall pay, when due, all consumption charges for all utility services furnished
to the Premises.

 

10.2         Landlord shall not be liable
to Tenant for damages because of interruptions in utility services unless such
interruption is due to the negligent or willful act of Landlord, its employees,
agents, contractors, or subcontractors. No interruption in utility service shall
cause any abatement in Tenant’s obligation to pay Rent.

 

11.          Alterations.

 

After
the Tenant Improvements have been completed in accordance with the Plans,
Tenant shall not thereafter make any alterations, additions, or improvements
affecting structural or support elements of or in the building or affecting any
utility systems servicing the Premises without Landlord’s prior written
approval, which approval shall not be unreasonably withheld or delayed. Any
alterations, additions, or improvements by Tenant that are permitted hereunder
or thereafter approved by Landlord shall, at the end of the Term or sooner
expiration of this Lease, become the property of Landlord and remain upon the
Premises.

 

12.          Trade Fixtures.

 

All
furniture, counters, business machinery, banking equipment, computers
(regardless of the manner of installation), and interior removable partitions
placed upon the Premises during the Term of this Lease, shall be considered as
chattels (for subsequent removal purposes) and shall not become part or parcel
of the real property, thereby permitting the same to

 

9

 

be removable by the Tenant
at the termination of this Lease. Any damage caused by any such removals shall
be repaired by Tenant. Upon any termination of this Lease all Tenant
Improvements, other than the above (which shall be the property of the Tenant
and shall be timely removed by Tenant) shall become the property of Landlord.

 

13.          Signs.

 

Subject
to Landlord’s prior approval as to design, location, height and color (which
approval shall not be unreasonably withheld or delayed), Tenant shall be
entitled to install and maintain on the Premises, at its cost and expense,
permanent professionally prepared signs containing Tenant’s trade name or logo
(and/or those of its subsidiaries and affiliates conducting business from the
Premises) so long as such signs comply with applicable law. Subject to
Landlord’s prior written approval (which approval shall not be unreasonably
withheld or delayed) as to design, location, height and color, Tenant may, if
permissible under applicable governmental sign regulations, construct a free
standing pylon sign on the Premises as well. Tenant may also, if permissible
under applicable governmental regulations, install a corporate -standard
environmental surround and/or shield for each of Tenant’s automatic teller machines
(“ATM”).

 

14.          Landlord’s Access.

 

Landlord
and its duly authorized representatives may enter the Premises only upon
reasonable advance notice to Tenant and subject to Tenant’s security
requirements (including the requirement for Landlord’s representative to be
escorted at all times by Tenant’s representative), to inspect the Premises and
to rectify defaults of Tenant pursuant to the rights granted to Landlord under Section 25.2
(but only after Tenant has failed to commence and diligently pursue a cure of
the default within any applicable cure period granted elsewhere in this Lease);
provided, however, that any such
entry by Landlord and its representatives shall be done in such a manner so as
to not unreasonably interfere with the conduct of Tenant’s business operations
on the Premises or compromise security of the Premises and provided further that
Tenant consents to Landlord’s immediate entry (without prior notice and escort)
if an emergency occurs as reasonably determined by Landlord. Landlord shall promptly
restore any disturbance to the Premises caused by any work performed by
Landlord on the Premises. Landlord may bring upon the Premises all things
reasonably necessary to perform any work done in the Premises pursuant to this Section 14.
Nothing herein contained shall be deemed or construed to impose upon Landlord
any obligation or responsibility whatsoever for the care, maintenance or repair
of the Premises, except as otherwise specifically provided in this Lease.

 

15.          Rules and Regulations. Tenant further
warrants, represents, covenants, and agrees to:

 

15.1         Keep the Premises (including
exterior and interior portions of all windows, doors and all other glass) in a
neat and clean condition;

 

15.2         Pay before delinquency any
and all taxes, assessments and public charges levied, assessed, or imposed upon
Tenant’s business or upon Tenant’s fixtures, furnishings or

 

10

 

equipment in the Premises
and pay when and as due all license fees, permit fees and charges of a similar
nature for the conduct by Tenant or any permitted subtenant of any business or
undertaking authorized hereunder to be conducted in the Premises;

 

15.3         Not permit the accumulation
(unless in concealed metal containers) or burning of any of Tenant’s rubbish or
garbage in, on or about any part of the Premises;

 

15.4         Except for newspaper vending
machines, not use the parking areas, sidewalks adjacent to or any other space
outside the improvements constructed on the Premises for display, sale, storage
or any other similar undertaking; provided
that such limitation shall not affect the use of the drive-in area,
the night depository, and the ATM’s for their intended purposes nor the
placement of outdoor smoking receptacles for use by Tenant’s employees and
customers;

 

15.5         Not use any advertising
medium or sound devices inside the improvements constructed on the Premises
that may be heard outside the Premises, or permit any objectionable odors to
emanate from such improvements; provided that such limitation
shall not affect the use of the drive-in area, the night depository, and the
ATM’s for their intended purposes;

 

15.6         Not use the plumbing
facilities in the Premises for any purpose other than that for which they were
constructed, or dispose of any foreign substances therein, whether through the
utilization of “garbage disposal” units or otherwise;

 

15.7         Not use for any purpose all
or any portion of the roof or exterior walls of the Premises other than for
Tenant’s signs as provided in this Lease; and

 

15.8         Not place any paper or
cardboard or other temporary signs on the exterior of the improvements unless
any such temporary signs are professionally done and neat in appearance.

 

16.          Indemnification.

 

16.1         Tenant shall
defend, indemnify and save Landlord harmless from and against any and all
claims, actions, demands, damages, liability and expenses (including reasonable
attorney’s fees) for injury to the property of others and injury or death of
persons which is caused by or arises (i) out of or in connection with
Tenant’s use or occupancy of the Premises or any negligent act or omission of
Tenant, its agents, employees, servants or contractors, or (ii) out of
breach by Tenant of any term, covenant or condition of this Lease to be
performed or observed by Tenant. Tenant shall not be liable, however, for any
claims, actions, demands, damages, liability and expenses (including reasonable
counsel fees) described in the preceding sentence that result from the
negligence of Landlord, its agents, employees, servants, or contractors and
Landlord shall indemnify and save Tenant harmless from any claims, actions,
demands, damages, liability and expenses (including reasonable attorneys’ fees)
resulting from such negligence..

 

11

 

17.          Insurance and Casualty.

 

17.1         Property
Insurance. During the Term, Tenant shall, at its expense, keep
in force insurance on the Tenant Improvements, whether now or hereafter
constructed, for their full insurable value (written on a 100% replacement cost
basis), less a reasonable deductible, and covering against loss from fire and
perils including Basic Form Causes of Loss. Such policy shall name Tenant
and Landlord as insured as their interests may appear. During the Term, Landlord
shall, at its expense, maintain insurance on any improvements on the balance of
the Center for one hundred percent (100%) of the full insurable value, less a
reasonable deductible, (written on a replacement cost basis) and covering
against loss from fire, and perils including Basic Form Causes of Loss
written on an agreed amount basis.

 

(a)           Restoration
After Casualty Loss. In the event of casualty damage to the
Premises, Tenant shall be entitled to all insurance proceeds for restoration of
the Tenant Improvements; provided that Tenant
shall diligently repair, restore and reconstruct the Tenant Improvements to
substantially the same condition existing prior to such casualty. If Tenant
does not commence and diligently pursue the restoration of the Tenant
Improvements as herein required within one hundred eighty (180) days after the
date of casualty, then, in addition to any other rights or remedies available
to Landlord, Landlord shall be entitled to receive all insurance proceeds and,
at Landlord’s option, exercisable after thirty (30) days’ written notice to
Tenant, either (a) restore the Tenant Improvements to the extent of net
insurance proceeds received, or (b) raze and demolish any remaining Tenant
Improvements and pave the Land, paying any excess insurance proceeds to Tenant.
Notwithstanding anything to the contrary set forth in this Lease, if the Tenant
Improvements, or any additions, replacements, or alterations thereto, shall be
substantially damaged or destroyed by casualty during the final year of the
Initial Term or during the final year of any Renewal Term unless Tenant
exercises or has exercised an available renewal option, then this Lease shall
terminate as of the date of such damage or destruction and all insurance
proceeds shall be paid solely to Landlord. Except as provided in the preceding
sentence, no casualty shall affect the obligation of Tenant to pay Rent under
this Lease for the entire Term hereof.

 

During
all periods when Tenant’s use of the Tenant Improvements is limited due to
repair or casualty, Tenant may place or erect temporary facilities on the Land
for its operations, provided such temporary facilities comply with all
governmental requirements.

 

17.2         Liability
Insurance of Tenant. Commencing on the date Tenant enters the Land
for construction of the Tenant Improvements and throughout the Term, Tenant
shall, at its expense, keep in force commercial general public liability
insurance, automobile liability insurance, boiler liability insurance and
sprinkler damage liability insurance, covering bodily injury and property
damage occurring on the Premises, including contractual liability coverage for
Tenant’s indemnity obligations under this Lease with a limit of not less than
One Million Dollars ($1,000,000.00) for bodily injury and death and for property
damage and with not less than Two Million Dollars ($2,000,000.00) in the
aggregate; which policy shall be written on an occurrence basis. During any
period of construction, the liability policy shall include an endorsement
covering construction operations. The minimum coverage limits set forth above

 

12

 

shall, at Landlord’s option,
be increased on every fifth anniversary of the Rent Commencement Date to a
minimum coverage limit that is then commercially reasonable for Tenant’s type
of business.

 

17.3         General
Requirements. All liability insurance required to be maintained by
Tenant shall name Tenant as named insured and shall include Landlord as
additional insured. All liability insurance required to be maintained by
Landlord shall name Landlord as named insured and shall include Tenant as
additional insured. All insurance required to be maintained by either Landlord
or Tenant shall contain a provision that the insurer shall not cancel or reduce
the coverage of any such policy without sending thirty (30) days’ prior written
notice to Landlord in case of Tenant’s insurance or to Tenant in the case of
Landlord’s insurance. If Tenant fails to keep the required insurance in force
after ten (10) days’ notice from Landlord, Landlord may do so and shall be
entitled to collect the premiums therefor from Tenant as Additional Rent on
demand. All insurance policies shall be written with insurance companies
licensed to do business in the state of Maryland having a Best Manual rating of
A- or better as to general policy holders rating and of VII or better as to
financial rating (or equivalent ratings as such ratings may be revised from
time to time). The insurance required to be maintained under this Lease may be
carried under a policy commonly known as a “blanket policy.” Within ten (10) days
after the Landlord’s Delivery Date and prior to any entry upon the Premises by
Tenant, its agents or contractors, Tenant shall furnish to Landlord copies
and/or certificates of the insurance policies required to be carried by it
under this Section 17. Within ten (10) days after the Landlord’s
Delivery Date, Landlord shall furnish to Tenant copies and/or certificates of
the insurance policies requires to be carried by it under this Section 17.

 

17.4         Workers’
Compensation Insurance. Landlord and Tenant and any contractors
employed or engaged by Landlord or Tenant shall obtain, keep in force and pay
for workers’ compensation insurance as required by law.

 

18.          Eminent Domain.

 

18.1         If the Premises is condemned
in whole or in part under the power of eminent domain, this Lease shall
terminate as to the part condemned on the date title or possession vests in the
condemning authority, whichever is first. As used herein, the terms “condemned” and “condemnation” include sale by Landlord to a condemning
authority under threat of condemnation. Landlord shall have the power and
authority to convey the entire Landlord’s interest in all or any part of the
Premises to the condemning authority without Tenant’s joinder, any such
conveyance by Landlord alone shall be deemed free and clear of any leasehold or
other interest by Tenant therein, any condemning authority shall be entitled to
rely upon the provisions of this sentence in accepting a deed from Landlord
alone. As used herein the term “condemnation award” includes the proceeds of
any sale by Landlord to a condemning authority under the threat of
condemnation.

 

18.2         If any condemning authority
notifies Landlord of a proposed condemnation of any part of the Land, Landlord
shall give Tenant written notice of the proposed condemnation together with
whatever plats and data are furnished to Landlord by the condemnor concerning
the extent of the proposed condemnation of the Premises. If any part of the improved

 

13

 

portion
of the Land is the subject of the proposed condemnation which will result, in
Tenant’s reasonable opinion, in a material adverse impact on Tenant’s ability
to operate its business, Tenant shall have one hundred twenty (120) days after
the date of such notice in which to elect to cancel this Lease effective upon
taking of possession pursuant to the condemnation. If Tenant gives written
notice of such election within such one hundred twenty (120) days, and if the
proposed condemnation is consummated, then this Lease shall terminate entirely
on the same date that this Lease terminates as to the condemned portion of the
Premises under Section 18.1 above. If Tenant does not make a timely
election to cancel this Lease, then this Lease shall continue in effect without
adjustment to the Annual Rent.

 

18.3         In the event of the
condemnation of all or any part of the Land, Tenant shall not be entitled to
share in any part of the condemnation award, including consequential damages,
for the taking of its leasehold estate, whether or not this Lease is terminated
under the provisions of this Section 18 by reason of such condemnation.
Tenant shall, however, be entitled to (i) a portion of any condemnation
award attributable to the Tenant Improvements and (ii) any separate award
obtained by Tenant from the condemning authority for moving expenses, loss of
trade fixtures, and loss of business. If this Lease is terminated, any
condemnation award attributable to the Tenant Improvements shall be allocated
between Landlord and Tenant in the same ratio as the reversionary interest of
Landlord in the Tenant Improvements bears to the then fair market value of the
Tenant Improvements. In the event that this Lease is not terminated, then all
proceeds attributable to the Tenant Improvements shall be made available to
Tenant for restoration.

 

19.          Assignment and Subletting.

 

19.1         Except as provided in Section 19.2
below, Tenant shall not assign this Lease in whole or in part without
Landlord’s prior written approval, which approval shall not be unreasonably
withheld or delayed. No Landlord consent shall be required for any subleasing
of the Premises, in whole or in part, by Tenant provided that Tenant shall
provide Landlord with advance written notice of the possession by any third
party pursuant to any sublease. Except as otherwise permitted by this Lease,
any assignment by operation of law, attachment or assignment for the benefit of
creditors, shall, at Landlord’s option, be inoperative. If Landlord at anytime
consents in writing to any assignment as defined in and prohibited by this Section 19,
in addition to any other consideration that may pass between the parties in
connection therewith, Tenant and any such assignee or sublessee shall be deemed
to have covenanted not to make any further assignment contrary to the
provisions of this Section 19, and such covenants shall be deemed to have
made as of the date of such consent and shall take effect prospectively from
the date thereof.

 

19.2         Notwithstanding anything
contained in Section 19.1 to the contrary, Tenant may, at any time,
without the consent of Landlord assign or otherwise transfer this Lease or any
portion thereof to a parent, subsidiary or affiliate corporation or entity; or
any corporation or entity resulting from the consolidation or merger of Tenant
into or with any other entity; or to any person, firm or corporation acquiring
a majority of Tenant’s issued and outstanding capital stock or a substantial
part of Tenant’s physical assets; provided, however, that in the
event of any

 

14

 

such assignment or transfer,
the assignee shall assume in writing the performance and observance of all the
terms and conditions of this Lease.

 

19.3         No assignment or sublease
shall relieve Tenant from any of its obligations under this Lease.

 

20.          Mechanics’ Liens and Other
Liens.

 

20.1         If any mechanics’ or other
lien is filed against the Premises by reason of any labor, material or service
furnished or alleged to have been furnished to Tenant in connection with
construction, alteration or repair of improvements on the Premises made by
Tenant, Tenant shall cause such lien to be released of record by payment, bond
or otherwise as allowed by law, at Tenant’s expense, within ten (10) business
days after the filing and service thereof; and Tenant shall, at its expense,
defend any proceeding for the enforcement of such lien, discharge and judgment
thereon and save Landlord and any mortgagee harmless from all losses and
expenses resulting therefrom including reasonable counsel fees and other
expenses incurred by Landlord and any mortgagee, if any of them elect to defend
or participate in the defense of such proceedings. Nothing in this Section 20
or elsewhere in this Lease shall be construed as a consent by Landlord that a
mechanics’ lien for any work authorized or contracted for by Tenant or required
by this Lease may attach to or constitute a lien against Landlord’s estate.

 

20.2         Tenant shall not permit the
Premises to be subjected to any statutory lien or any other lien or encumbrance
that might obtain priority over Landlord’s interest in the Premises or be in
parity therewith by reason of any act or omission on the part of Tenant or any
of its approved licensees or subtenants or their respective agents, servants,
employees or contractors other than real estate taxes for which no interest or
penalty has yet been incurred; and in the event that any such lien attaches to
the Premises, Tenant shall discharge such lien promptly by payment, bond or
otherwise as allowed by law, at its own expense, within ten (10) business
days after the filing (and service or notice) thereof.

 

21.          Quiet Enjoyment.

 

So
long as no default exists beyond any applicable cure period Tenant shall have
the peaceful and quiet use of the Premises, subject to the terms, covenants and
conditions of this Lease, without interference with possession by Landlord or
any one claiming by, through or under Landlord.

 

22.          Right to Mortgage; Attornment.

 

22.1         Landlord’s
Right to Mortgage. Landlord shall have the absolute right and/or power
to mortgage or otherwise create any security interest or other lien or
encumbrance upon or affecting the Landlord’s reversionary interest in the
Premises or any improvements thereon or any part thereof at any time and from
time to time, and Landlord shall further have the right and/or power to modify,
extend, renew, replace, refinance or otherwise change or effect any such
mortgage, security interest, lien or encumbrance created by Landlord pursuant
to this Lease. As a condition to the granting of any such mortgage or security
interest, however, Landlord shall

 

15

 

obtain from the mortgagee or
other lender or creditor, a non-disturbance agreement recognizing Tenant’s
rights under this Lease.

 

22.2         Attornment.
When requested by Landlord, Tenant shall promptly execute an agreement
with any mortgagee or prospective mortgagee, or purchaser or prospective
purchaser, of Landlord’s estate in the Premises, under which Tenant agrees, in
the event that any such person succeeds to the interest of Landlord under this
Lease, to attorn to such person as its landlord, as long as such person
executes such agreement for the purpose of recognizing Tenant’s rights under
this Lease.

 

22.3         Tenant
Financing. Tenant shall be permitted, from time to time, to
mortgage or otherwise finance its leasehold interest in the Premises. In no
event, however, shall any such mortgage or other financing encumber Landlord’s
fee interest or affect Tenant’s obligations under this Lease.

 

23.          Estoppel Certificates.

 

When
requested in writing by either party to this Lease (the “Requesting Party”),  the other party
(the “Responding Party”) shall acknowledge in writing to the
Requesting Party, a mortgagee or prospective mortgagee, a purchaser or
prospective purchaser, of the Requesting Party’s estate, that this Lease is
unmodified, in full force and effect, free of defaults of the Requesting Party
and free of defenses against enforceability (or setting forth any
modifications, defaults, disclaimers of the Lease or defenses against
enforceability); that the Responding Party has no outstanding claims against
the Requesting Party (or setting forth the nature and amount of claims, if
any); stating the date to which rent has been paid and the amount of any
advance rental paid; stating the Rent Commencement Date and expiration date of
this Lease; and the status of any other obligation of the Requesting Party
under or with respect to this Lease; it being intended that any such statement
may be relied upon by the Requesting Party, any mortgagee or prospective
mortgagee, or any purchaser or prospective purchaser, of the Requesting Party’s
estate.

 

24.          Environmental Matters.

 

24.1         If
at any time any Hazardous Materials are determined to be located on, in
or affecting the Land and the presence of such Hazardous Materials is the
result of introduction onto the Land by Landlord, any condition existing prior
to the Effective Date, any migration from adjoining parcels or from any other
cause other than that described in Section 24.4 below (collectively
“Landlord’s Responsibility”), then Landlord shall (y) within thirty (30)
days after written notice from Tenant or any governmental authority of the
presence thereof, take or cause to be taken, at its sole expense, such actions
as may be necessary to remediate the contamination caused by the presence of
Hazardous Materials, and (z) within thirty (30) days after written demand
therefor, reimburse Tenant for any amounts expended by Tenant (i) to
remediate the contamination caused by the presence of Hazardous Materials with
respect to the Premises if Landlord has failed to do so after notice and
reasonable opportunity to do so, or (ii) in connection with any judicial
or administrative investigation or proceeding relating thereto, including,
without limitation, reasonable attorneys’ fees, fines, or other penalty
payments. If Landlord fails

 

16

 

to take, or cause to be
taken, such actions as may be required by this Section 24.1 within ninety
(90) days after Tenant’s written demand, Tenant shall have the right to
terminate this Lease upon written notice to Landlord, provided that if the
required action is diligently undertaken by Landlord but cannot be completed
within the 90 day period and Tenant’s use and operation of the Premises is not
materially, adversely affected by the delay, then Landlord shall have such
additional time as may be reasonably necessary to complete the required action.
During any period where Tenant cannot operate from the Premises, then Rent
shall abate; otherwise, no abatement of Rent shall occur during Landlord’s
required actions. In no event shall Landlord be liable to Tenant for any
damages resulting from any closure of Tenant’s business, Tenant’s remedies
being limited to abatement of rent during periods of closure and/or termination
of the Lease if Landlord does not timely provide the required action. Landlord
shall indemnify and hold Tenant harmless from and against any loss or damages
arising from Landlord’s failure to perform Landlord’s Responsibility.

 

24.2         Landlord will provide Tenant
with copies of all notices Landlord receives from any governmental authority
regarding environmental matters in respect of the Premises.

 

24.3         During the Term of this
Lease, Tenant shall: (1) keep the Premises (including the Land, surface
water, ground water, and improvements to the Land) free of any contamination by
Hazardous Materials resulting from any act or omission of Tenant; and (2) comply
with all Environmental Laws in its use and occupancy of the Premises; provided, however, that Tenant shall be
permitted to maintain and use on the Premises Hazardous Materials that are
customarily maintained and used by businesses similar to Tenant as long as such
Hazardous Materials are maintained in appropriate quantities and properly
stored and used and otherwise in accordance with all applicable laws.

 

24.4         Tenant expressly
acknowledges and agrees that it will reimburse, defend, indemnify and hold
harmless Landlord, its successors, assigns and other parties claiming any
interest in the Premises by, through or under Landlord, from and against any
and all liabilities, claims, damages, penalties, expenditures, losses or
charges (including, but not limited to, all costs of investigation, monitoring,
legal fees, remedial response, removal, restoration or permit acquisition)
which may, now or in the future, be undertaken, suffered, paid, awarded,
assessed, or otherwise incurred as the result of:

 

(a)           any contamination by
Hazardous Materials existing on, above or under the Premises during the Term
that results from the acts or omissions of Tenant, its subtenants, agents,
employees, contractors, or invitees (including, but not limited to,
contaminated soil, buildings, facilities and/or ground water) or which
introduction is not the result of Landlord Introduction; and

 

(b)           any investigation,
monitoring, clean up, removal, restoration, remedial response or remedial work
with respect to Hazardous Materials for which Tenant would be liable under (a) above
and reasonably undertaken by or on behalf of Landlord after Landlord has
provided Tenant written notice of the need for such investigation, monitoring,
clean up, removal, restoration, remedial response or remedial work and Tenant
has failed to undertake the appropriate action within a reasonable time.

 

17

 

24.5         Tenant and Landlord
acknowledge and agree that the expiration or termination of this Lease shall
not and does not relieve or release either party of any legal liability and
responsibility (under common law, statute or regulation) either would otherwise
have as tenant or landlord, respectively, of the Premises under this Section 24,
whether by way of damages, penalties, remedial actions, or otherwise for any
adverse effects or consequences resulting at any time from any contamination by
Hazardous Materials of the soil, facilities, buildings and/or ground waters
which existed on, above or under the Premises during the Term.

 

25.          Defaults and Remedies.

 

25.1          Defaults
by Tenant. If Tenant

 

(a)           defaults in the payment of
Annual Rent and Additional Rent payable under this Lease, and such default
continues for more than ten (10) days after receipt of written notice
thereof; or

 

(b)           defaults in the performance
or observance of any term, covenant or condition to be performed by it
hereunder that may be performed merely by the payment of money and such default
is not rectified within ten (10) days after receipt of written notice
thereof; or

 

(c)           shall allow any insurance
policy required to be carried by it hereunder to lapse or to be cancelled and
does not cause such insurance to be replaced within ten (10) days after
receipt of written notice of such lapse or cancellation from Landlord; or

 

(d)           defaults in the performance
or observance of any other term, covenant or condition of this Lease on
Tenant’s part to be performed or observed and does not commence to rectify such
default within thirty (30) days after written notice thereof or does not
thereafter diligently complete the rectification thereof,

 

then, in any of such
foregoing events, Landlord may, at its option, (i) terminate this Lease
and reenter the Premises or (ii) reenter the Premises without terminating
this Lease, and, using due care, assume custody and control thereof for the
purpose of protecting the Premises and/or for reletting the Premises as agent for
Tenant and such agency shall be deemed as a power coupled with an interest and
shall be irrevocable. In either such event Landlord shall make a reasonable
effort to relet the Premises and shall be entitled to the benefit of all
provisions of the public general laws of Maryland and the public local laws and
ordinances of Baltimore County respecting the summary eviction of tenants in
default or tenants holding over, or respecting proceedings in forcible entry
and detainer. Notwithstanding termination and/or re-entry, Tenant shall remain
liable for any Annual Rent, Additional Rent, and damages (exclusive of
consequential damages) having accrued prior thereto and for any Annual Rent,
Additional Rent, and damages (exclusive of consequential damages) which shall
become due thereafter and shall pay Landlord for all reasonable costs and
expenses, including but not limited to, attorneys’ and brokers’ fees and
expenses, paid or incurred by Landlord in connection with: (1) obtaining
possession of the Premises; (2) removal and storage of Tenant’s or other
occupant’s property; (3) care, maintenance and repair of the Premises
while vacant; (4) re-letting the whole or any

 

18

 

part
of the Premises; and (5) repairing, altering, renovating, partitioning,
enlarging, remodeling or otherwise putting the Premises into condition
acceptable to, and reasonably necessary to obtain new tenants.

 

25.2         Other
Remedies for Tenant Default. In addition to the remedies
available to Landlord in the preceding Section 25.1, if Tenant fails to
maintain any insurance required to be maintained by Tenant under this Lease, or
fails to furnish evidence of insurance renewals at the times in this Lease
required, or allows such insurance to lapse or be cancelled, Landlord may
obtain such insurance for Tenant five (5) days following notice from
Landlord, and Tenant shall reimburse Landlord for the cost thereof promptly on
demand. If Tenant defaults in the performance or observance of any term,
covenant or condition, other than the covenant to pay rent, to be performed or
observed by it under this Lease, and such default continues without cure or
commencement of a reasonable effort to cure same for more than thirty (30) days
after written notice thereof, Landlord may take action to rectify such default
on Tenant’s behalf; provided, however, that
except in the case of an emergency, Landlord shall not make any payment or
cause the performance of any act to cure such default without giving Tenant
fifteen (15) days’ notice of Landlord’s intention to do so. Landlord may
rectify such default on Tenant’s behalf immediately and without such notice if
immediate action is reasonably believed to be required in order to avoid injury
or damage to other persons or property (including Landlord’s property). Subject
to Tenant’s security and privacy requirements, Landlord may enter the Premises
to rectify such defaults. All money advanced and costs and expenses incurred by
Landlord in rectifying any default (including Landlord’s reasonable attorney’s
fees) together with interest thereon at the “Prime Rate” announced from time to
time by Carrollton Bank as its Prime Rate plus two percent (2%) per annum from
the date advanced until the date paid by Tenant, shall be repaid by Tenant to
Landlord on demand.

 

25.3         Late
Fee. In the event that any installment of Rent is not paid within five (5) days
of the due date, Landlord may impose a late fee equal to five percent (5%) of
the amount of the delinquent installment. Payment of such late fee, if imposed
by Landlord, shall be a condition to Landlord’s obligation to accept any
delinquent installment of Rent. Any late fee shall not be deemed a penalty but
a payment to defray the administrative cost to Landlord of addressing Tenant’s
delinquency.

 

25.4         Payment
of Landlord’s Costs. If Landlord files an action against Tenant to
collect Annual Rent or Additional Rent payable under this Lease or any other
sum for which Tenant is legally liable to Landlord, and a judgment is rendered
for Landlord with respect thereto, then Tenant shall pay all reasonable
attorney’s fees and out of pocket costs of collection incurred by Landlord in
such action.

 

25.5         Waiver
of Lien. Landlord expressly waives any right to a statutory
landlord’s lien. Notwithstanding anything contained in this Lease to the
contrary, Landlord shall never have any property interest in or lien on or
right of distraint against any cash, checks, notes, bonds, securities,
passbook, records, or other property held by Tenant for its customers on the
Premises, whether for safekeeping or collateral, and whether in its vaults,
safe deposit boxes, night depository, or safes.

 

19

 

25.6         Landlord’s
Default. In the event that Landlord defaults in any of Landlord’s
obligations under this Lease that affect Tenant’s use and occupancy of the
Premises, and fails to cure such default within thirty (30) days after Tenant
gives Landlord notice of the Landlord’s default, then Tenant shall be entitled,
but not obligated, to cure Landlord’s default, in which event upon Tenant’s
demand Landlord shall pay Tenant the reasonable expenses, including reasonable
attorneys’ fees, incurred by Tenant in curing Landlord’s default; provided,
however, that except in the case of an emergency, Tenant shall not make any
payment or cause the performance of any act to cure Landlord’s default without
giving Landlord fifteen (15) days’ notice of Tenant’s intention to do so.
Notwithstanding the foregoing, if Landlord’s default is such that it cannot
reasonably be cured within thirty (30) days, then, provided that Landlord shall
commence to cure the default within thirty (30) days after Tenant gives
Landlord notice of the default and diligently pursues the same, Landlord shall
be permitted an additional reasonable period of time in which to cure the
default before Tenant exercises Tenant’s remedies under this Section 25.6.

 

26.          Bankruptcy
or Insolvency.

 

If any transfer of Tenant’s interest in the Premises created by this
Lease shall be made under execution or similar legal process, or if a petition
is filed by or against Tenant to adjudicate Tenant a bankrupt or insolvent
under any federal or state law, or if a receiver or trustee shall be appointed
for Tenant’s business or property and such appointment is not vacated within
ninety (90) days, or if a petition is filed by or against Tenant under any
provision of federal or state law for a corporate reorganization of Tenant of
an arrangement with its creditors, of if Tenant makes an assignment for the
benefit of its creditors, or if in any other manner Tenant’s interest under
this Lease passes to another by operation of law (except by merger), then, in
any of said events, Tenant shall be deemed to have committed a material breach
of this Lease, and Landlord may, at its option, terminate this Lease and
re-enter the Premises; but notwithstanding such termination, Tenant shall
remain liable for all rent and damages, suffered or incurred by Landlord.

 

27.          Miscellaneous
Provisions.

 

27.1         Notices.
All notices from either party to the other under this Lease shall be
sent by telegram or Certified Mail, Return Receipt Requested, or hand-delivered
with a signed receipt. Whenever in this Lease reference is made to a notice to
be given, such notice shall be deemed to have been given when mailed, wired or
hand-delivered to the proper notice address of the party to be notified; provided that notices mailed within a time
period set forth in the Lease for giving notice shall be deemed given within
such time period, if mailed within such time period. Notices to Landlord shall
be addressed to Landlord’s Notice Address. Notices to Tenant shall be addressed
to Tenant’s Notice Address.

 

27.2         Successors
and Assigns. This Lease and covenants, terms and conditions
herein contained shall inure to the benefit of and be binding upon Landlord,
its successors and assigns, and shall be binding upon and inure to the benefit
of Tenant and its permitted successors and assigns. As used herein the term
“Tenant” includes its permitted successors and assigns, and the term “Landlord”
includes its successors and assigns.

 

20

 

27.3         Effect
of Termination. Except as specifically provided elsewhere in this
Lease, if this Lease is terminated for any reason other than default of Tenant,
all liabilities of the parties shall be adjusted as of the effective date of
termination. Any termination hereof by reason of a default of the Tenant shall
not affect any obligation or liability of Tenant under this Lease.

 

27.4         Date
of Termination. If this Lease is terminated under any provision
hereof, the parties shall, at the request of either, stipulate the termination
date in a written agreement to be executed and acknowledged by the parties.

 

27.5         Severability.
If any term, covenant or condition of this Lease or the application
thereof to any person or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Lease, or the application of such term,
covenant or condition to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby and each
term, covenant or condition of this Lease shall be valid and be enforceable to
the fullest extent permitted by law.

 

27.6         Final
Agreement. This Lease contains the final and entire agreement
between the parties hereto. Neither Landlord nor Tenant shall have any
obligation not expressly set forth herein; and neither party shall be bound by
any promises, conditions or representations prior to the date hereof which are
not expressly set forth therein.

 

27.7         Governing
Law. The parties agree that this Lease shall be construed in accordance with
the Laws of the State of Maryland.

 

27.8         Liability
of Landlord. If Landlord or any successor in interest to Landlord
shall be an individual, joint venture, tenancy in common, firm or partnership,
general or limited, there shall be no personal liability on such individual, or
the members of such firm, partnership or joint venture with respect to any of
the provisions of this Lease, any obligation arising therefrom or in connection
therewith. In such event, Tenant shall look solely to the equity of the then
owner of Landlord’s interest in the Center for the satisfaction of any remedies
of Tenant in the event of a breach by the Landlord of any of its obligations
hereunder.

 

27.9         Brokers.
Tenant warrants that it employed no broker or agent concerning the
renting of the Premises. Similarly, Landlord warrants that there was no broker
or agent acting on behalf of Landlord and instrumental in consummating this
Lease. Each party shall indemnify and hold harmless the other party from and
against any claims for other brokers or other commissions arising by reason of
a breach by such party of the foregoing warranty.

 

27.10       No
Joint Venture. Nothing contained in this Lease shall be deemed to
give Landlord any interest, control or discretion in the operation of Tenant’s
business on the Premises and nothing contained in this Lease shall be construed
to be or to create a partnership or joint venture between Landlord and Tenant.

 

21

 

27.11       Recording.
All costs of recording this Lease, or a short form thereof, if it is
recorded (including documentary stamps and transfer taxes), shall be borne by
the party desiring recordation, notwithstanding any statute to the contrary.

 

27.11       Force
Majeure. If Landlord or Tenant shall be delayed, hindered in
or prevented from the performance of any act or obligation required under this
Lease (other than Tenant’s obligation to pay Annual Rent and Additional Rent
hereunder) by reason of acts of God, strikes, lockouts, labor troubles or
disputes, inability to procure or shortage of materials or labor, failure of
power or utilities, delay in transportation, fire, vandalism, accident, flood,
severe weather, other casualty, governmental requirements (including mandated
changes in the Plans or the Tenant Improvements resulting from changes in
pertinent governmental requirements or interpretations thereof), riot,
insurrection, civil commotion, sabotage, explosion, war, natural or local
emergency, acts or omissions of others, or other reasons of a similar or
dissimilar nature not solely the fault of, or under the exclusive control of,
the delayed party, then performance of such act or obligation shall be excused
for the period of the delay and the period for the performance of any such act
or obligation shall be extended for the period equivalent to the period of such
delay.

 

27.12       Landlord’s
Consent. Unless otherwise provided in this Lease, whenever
Landlord’s consent, approval or other action is required under the terms of
this Lease, such consent, approval or action shall be subject to Landlord’s
reasonable judgment or discretion exercised in good faith and shall be
delivered in writing and, accordingly, such approval will not be unreasonably
withheld, delayed or conditioned by Landlord.

 

27.13       Time
of Essence. Time is of the essence with respect to the
performance of every covenant and condition of this Lease.

 

27.14       Waiver
of Jury Trial. LANDLORD AND TENANT IRREVOCABLY WAIVE THEIR
RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY EITHER AGAINST THE OTHER (WHETHER IN CONTRACT OR TORT) ON ANY MATTER
ARISING OUT OF OR RELATING IN ANY WAY TO THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT OR TENANT’S USE OR OCCUPANCY OF THE PREMISES.

 

22

 

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.

 

	
  ATTEST:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SCOTTS
  CORNER LLLP, a Maryland limited liability limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/
  Daniel J. Feeley

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Daniel
  J. Feeley

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  General
  Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CARROLLTON
  BANK, a Maryland state chartered commercial bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kim John

  	
   

  	
  By:

  	
  /s/
  Robert A. Altieri

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
  Robert
  A. Altieri, President

  

 

23

 

	
  STATE
  OF MARYLAND

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS:

  
	
  COUNTY OF  BALTIMORE

  	
  )

  	
   

  

 

I HEREBY CERTIFY that on this 13th day of January,
2006, before me, the undersigned officer, personally appeared Daniel J.
Feeley, who acknowledged himself to be the General Partner of Scotts Corner
LLLP, a Maryland limited liability limited partnership, and that he, in such
capacity, being authorized to do so, executed the foregoing instrument for the
purposes therein contained, by signing the name of the partnership, as General
Partner.

 

IN WITNESS WHEREOF I hereunto set my hand and Notarial Seal.

 

	
   

  	
   

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
  My
  Commission expires

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  12/01/06

  	
   

  	
   

  

 

 

	
  [SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE
  OF MARYLAND

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS:

  
	
  CITY/COUNTY OF  BALTIMORE

  	
  )

  	
   

  

 

I HEREBY CERTIFY that on this 5th day of January, 2006, before me, the
undersigned officer, personally appeared Robert A. Altieri who acknowledged
himself to be the President of Carrollton Bank, a Maryland state chartered
commercial bank, and that he, in such capacity, being authorized to do so,
executed the foregoing instrument for the purposes therein contained, by
signing the name of the bank, as President.

 

IN WITNESS WHEREOF I hereunto set my hand and Notarial Seal.

 

	
   

  	
  /s/ Ivanna Teluk

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My Commission expires:
  7-1-06

  	
   

  

 

24

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