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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	 	3
	3.	 	Lease Term	 	5
	4.	 	Landlord's Construction and Other Site Obligations	 	5
	5.	 	Tenant's Construction Obligations	 	6
	6.	 	Use of Property	 	7
	7.	 	Limitation on Multiple Banking Uses	 	7
	8.	 	Rent	 	8
	9.	 	Common Elements Operating Costs	 	8
	10.	 	Taxes and Assessments	 	9
	11.	 	Utilities	 	10
	12.	 	Maintenance	 	10
	13.	 	Alterations	 	10
	14.	 	Trade Fixtures	 	11
	15.	 	Signs	 	11
	16.	 	Landlord's Access	 	11
	17.	 	Rules and Regulations	 	11
	18.	 	Indemnification	 	12
	19.	 	Insurance and Casualty	 	13
	20.	 	Eminent Domain	 	14
	21.	 	Assignment and Subletting	 	15
	22.	 	Mechanics' Liens and Other Liens	 	17
	23.	 	Quiet Enjoyment	 	17
	24.	 	Landlord's Right to Mortgage; Attornment	 	18
	25.	 	Estoppel Certificates	 	18
	26.	 	Acts of Other Tenants	 	18
	27.	 	Environmental Matters	 	18
	28.	 	Defaults and Remedies	 	19
	29.	 	Bankruptcy or Insolvency	 	21
	30.	 	Miscellaneous Provisions	 	21

 
 

GROUND LEASE    
    

        THIS LEASE (the "Lease"), dated November 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
	 	 
	 	 

	Beginning
 
	 	Ending
	 	Annual Rent
	 	Monthly

Installment

(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 3,200 +/-
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. 

        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 

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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. 

        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: 

        (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 

3

 

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 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. 

4

   
        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. 

        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 

5

 

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 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, quasigovernmental 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

 

        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; 

        (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. 

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        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. 

        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 

8

 

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 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. 

9

 

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 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. 

10

   
        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 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; 

        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; 

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        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
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. 

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        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. 

        (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 

13

 

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 "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 

14

 

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 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. 

15

  

        (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 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 from the person or persons managing the partnership on the date hereof, shall be deemed a prohibited 

16

 

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 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. 

17

 

        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. 

        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, 

18

 

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 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 nonmonetary 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 

19

 

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; (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 

20

 

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 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 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. 

21

 

        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 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    
    

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:	 	 
	 	 	 	 	 	 	 
	 	 	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	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	[ILLEGIBLE]	 	By:	 	ROBERT A. ALTIERI	 	(SEAL)
	
	 	 	 	
 President & CEO	 	 

23

  

	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. Altier, 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. 

	

 	
 	

ILLEGIBLE
 Notary Public
	

My Commission expires:	
 	

 
	

July 1, 2006.
	
 	

 

24

 
 
 

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

25

 
 
 

EXHIBIT A    
    
    PLAT    
    

26

 
 
 

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. 

27

QuickLinks

Table of Contents

GROUND LEASE

INTRODUCTORY STATEMENT

Signatures on Next Page

LIST OF EXHIBITS

EXHIBIT A PLAT

EXHIBIT B LANDLORD'S LAND SITE IMPROVEMENTSQuickLinks
 -- Click here to rapidly navigate through this document
Exhibit 10.19  

        THE AVENUE AT WHITE MARSH  

 SHOPPING CENTER LEASE  

 Between  

 THE AVENUE AT WHITE MARSH, LLC

(Landlord)  

 and  

 CARROLLTON BANK, a Maryland corporation

(Tenant)  

 Dated:  

 October 31, 1997  

  

 
 

INDEX TO LEASE AGREEMENT    
    

	 
	 	 
	 	Page

	ARTICLE 1	 	 
	Defined Terms 	 	1
	1.01	 	Lease	 	1
	1.02	 	Landlord	 	1
	1.03	 	Landlord's Address	 	1
	1.04	 	Rental Payment Place	 	1
	1.05	 	Tenant	 	1
	1.06	 	Tenant's Trade Name	 	1
	1.07	 	Tenant's Address	 	1
	1.08	 	Shopping Center	 	1
	1.09	 	Premises	 	1
	1.10	 	Leasable Space	 	2
	1.11	 	Commencement Date	 	2
	1.12	 	Delivery Date	 	2
	1.13	 	Term	 	2
	1.14	 	Minimum Rent	 	3
	1.15	 	Percentage Rent	 	3
	1.16	 	Security Deposit	 	3
	1.17	 	Permitted Use	 	3
	1.18	 	Tenant's Proportionate Share	 	3
	1.19	 	Guarantor	 	3
	1.20	 	Broker's Name and Address	 	4
	1.21	 	Initial Marketing Service Charge	 	4
	1.22	 	Opening Contribution	 	4
	1.23	 	Lease Year	 	4
	1.24	 	Option Term	 	4
	1.25	 	Construction Allowance	 	4
	
ARTICLE 2	
 	

 
	Grant and Term	 	4
	2.01	 	Grant	 	4
	2.02	 	Term	 	4
	
ARTICLE 3	
 	

 
	Rent	 	4
	3.01	 	Minimum Rent	 	4
	3.02	 	Percentage Rent	 	5
	3.03	 	Utility Charges	 	7
	3.04	 	Taxes	 	7
	3.05	 	Trash Removal	 	8
	3.06	 	Insurance	 	8
	3.07	 	Net Lease	 	9
	3.08	 	Additional Rent	 	9
	3.09	 	Method of Payment, Past Due Rents	 	9
	
ARTICLE 4	
 	

 
	Construction of Improvements	 	9
	4.01	 	Condition of Premises	 	9
	4.02	 	Tenant's Work	 	9
	 	 	 	 	 

i

 

	4.03	 	Failure of Tenant to Open	 	10
	4.04	 	Landlord's Option to Terminate Lease	 	10
	4.05	 	Measurement of Premises	 	10
	
ARTICLE 5	
 	

 
	Use of Premises	 	11
	5.01	 	Use	 	11
	
ARTICLE 6	
 	

 
	Quiet Enjoyment and Landlord's Right of Entry	 	12
	6.01	 	Quiet Enjoyment	 	12
	6.02	 	Right of Entry	 	12
	6.03	 	Certain Matters of Record	 	12
	
ARTICLE 7	
 	

 
	Nuisance, Waste, Operations, Rules and Regulations	 	13
	7.01	 	Nuisance	 	13
	7.02	 	Waste, Etc	 	13
	7.03	 	Tenant's Operations	 	13
	7.04	 	Rules and Regulations	 	13
	
ARTICLE 8	
 	

 
	Compliance with Law, Liens, Indemnity	 	14
	8.01	 	Compliance with Law and Contracts	 	14
	8.02	 	Title and Covenant Against Liens	 	14
	8.03	 	Toxic and/or Hazardous Substances	 	14
	8.04	 	Americans With Disabilities Act	 	15
	8.05	 	Indemnification	 	15
	
ARTICLE 9	
 	

 
	Maintenance and Repair of Premises	 	15
	9.01	 	Maintenance by Tenant	 	15
	9.02	 	Maintenance by Landlord	 	16
	
ARTICLE 10	
 	

 
	Common Areas and Charges	 	16
	10.01	 	Control of Common Areas	 	16
	10.02	 	License	 	17
	10.03	 	Maintenance Charges	 	17
	
ARTICLE 11	
 	

 
	Fixtures/Building, Signs and Alterations	 	18
	11.01	 	Fixtures/Building	 	18
	11.02	 	Signs	 	18
	11.03	 	Landlord's Lien	 	18
	11.04	 	Alterations	 	18
	
ARTICLE 12	
 	

 
	Condemnation	 	19
	12.01	 	Definitions	 	19
	12.02	 	Extent/Termination	 	19
	12.03	 	Rebuilding	 	19
	12.04	 	Effect on Rent	 	19
	12.05	 	Award	 	19
	 	 	 	 	 

ii

 

	
ARTICLE 13	
 	

 
	Insurance	 	19
	13.01	 	Insurance to be Provided by Tenant	 	19
	13.02	 	General Insurance Requirements	 	20
	13.03	 	Waiver of Claims	 	20
	13.04	 	Change in Coverage	 	21
	13.05	 	Waiver of Right of Recovery	 	21
	
ARTICLE 14	
 	

 
	Damage or Destruction	 	21
	14.01	 	Rebuilding by Landlord	 	21
	14.02	 	Rebuilding by Tenant	 	21
	14.03	 	Landlord's Termination Right	 	21
	14.04	 	Proportionate Rent Adjustment	 	21
	
ARTICLE 15	
 	

 
	Assignment, Subletting and Encumbrance	 	21
	15.01	 	Assignment and Subletting	 	21
	15.02	 	Encumbrance	 	22
	
ARTICLE 16	
 	

 
	Default and Bankruptcy	 	22
	16.01	 	Events of Default	 	22
	16.02	 	Remedies	 	23
	16.03	 	Damages	 	24
	16.04	 	Rights Cumulative, Non-Waiver	 	25
	16.05	 	Legal Expenses	 	25
	16.06	 	Tenant Bankruptcy	 	25
	
ARTICLE 17	
 	

 
	Estoppel Certificates, Subordination, Mortgagee Protection	 	27
	17.01	 	Estoppel Certificates	 	27
	17.02	 	Subordination/Superiority	 	27
	17.03	 	Attornment	 	27
	17.04	 	Modification for Mortgagee	 	28
	17.05	 	Mortgagee Protection	 	28
	
ARTICLE 18	
 	

 
	Surrender and Holdover	 	28
	18.01	 	Surrender	 	28
	18.02	 	Holdover	 	28
	18.03	 	Termination	 	29
	
ARTICLE 19	
 	

 
	Security Deposit	 	29
	19.01	 	Security Deposit	 	29
	
ARTICLE 20	
 	

 
	Marketing Fund and Advertising	 	29
	20.01	 	Marketing Service; Tenant's Marketing Service Charge	 	29
	20.02	 	Landlord's contribution	 	30
	20.03	 	Advertising	 	30
	20.04	 	Solicitation of Business	 	30
	 	 	 	 	 

iii

 

	20.05	 	Opening Contribution	 	30
	
ARTICLE 21	
 	

 
	General Provisions	 	31
	21.01	 	Successors	 	31
	21.02	 	Notices	 	31
	21.03	 	No Option	 	31
	21.04	 	No Joint; Venture	 	31
	21.05	 	Broker	 	31
	21.06	 	Financial Statements	 	31
	21.07	 	Headings and Captions	 	31
	21.08	 	Use of Pronoun, Joint and Several Liability	 	31
	21.09	 	Partial Invalidity	 	32
	21.10	 	Survival	 	32
	21.11	 	Definition of Landlord/Exculpation	 	32
	21.12	 	Time of Essence	 	32
	21.13	 	Excuse of Performance	 	32
	21.14	 	Accord and Satisfaction	 	32
	21.15	 	Entire Agreement	 	32
	21.16	 	Recordation	 	33
	21.17	 	Governing Law/Venue/Consent to Jurisdiction	 	33
	21.18	 	Corporate Tenants	 	33
	21.19	 	Waiver of Jury Trial	 	33
	21.20	 	Landlord's Management and Income Tax Provisions	 	33
	21.21	 	Guaranty	 	34

	EXHIBIT A	 	Shopping Center Site Plan
	EXHIBIT B	 	Landlord's Work
	EXHIBIT C	 	Design Criteria
	EXHIBIT C-1	 	Sign Criteria
	EXHIBIT D	 	Form of Confirmation of Commencement Date and Term
	EXHIBIT E	 	Rules and Regulations
	EXHIBIT F	 	Intentionally Deleted
	EXHIBIT G	 	Form of Estoppel Certificate
	EXHIBIT H	 	Intentionally Deleted
	EXHIBIT I	 	Construction Allowance

iv

        THIS SHOPPING CENTER LEASE (this "Lease") is made and entered into by and between Landlord and Tenant (as said terms are hereafter defined in Article 1) as of the date stated on
the title page. 

 
 

ARTICLE 1    
    Defined Terms    
    

        When used in this Lease the following terms shall have the respective meanings set forth opposite each such term. Other definitions are given elsewhere in this
Agreement. 

	1.01 Lease	 	This Shopping Center Lease, including the following exhibits, riders and addenda which are incorporated herein and made a part hereof by this reference:
	

 	
 	

Exhibit A    Shopping Center Site Plan
	 	 	Exhibit B    Landlord's Work
	 	 	Exhibit C    Design Criteria
	 	 	Exhibit C-1    Sign Criteria
	 	 	Exhibit D    Form of Confirmation of Commencement

                     Date and Term
	 	 	Exhibit B    Rules and Regulations
	 	 	Exhibit F    Intentionally Deleted
	 	 	Exhibit G    Form of Estoppel Certificate
	 	 	Exhibit H    Intentionally Deleted
	 	 	Exhibit I    Construction Allowance
	

1.02 Landlord:	
 	

The Avenue at White Marsh, LLC
	

1.03 Landlord's Address:	
 	

100 West Pennsylvania Avenue

Towson, Maryland 21204
	

1.04 Rental Payment Place:	
 	

c/o Nottingham Properties, Inc.

100 West Pennsylvania Avenue

Towson, Maryland 21204
	

1.05 Tenant:	
 	

Carrollton Bank, a Maryland corporation
	

1.06 Tenant's Trade Name:	
 	

Carrollton Bank
	

1.07 Tenant's Address:	
 	

Suite 200

15 Charles Plaza

Baltimore, Maryland 21203

Attn: Mr. Dallas Arthur, President

Telephone #(410) 536-4600 IRS Tax ID#/SS# 52-0265260
	

1.08 Shopping Center:	
 	

The real property shown on the site plan attached hereto as Exhibit A, commonly known as The Avenue at White Marsh, located in white Marsh, 14th Election District, Baltimore County, Maryland as the same may be modified from time to time pursuant to
Section 6.01 hereof.
	

1.09 Premises:	
 	

That portion of the Shopping Center identified by cross-hatching and also an ATM facility as shown on Exhibit A, consisting of approximately 2,640 square feet.
	 	 	 

 

	

1.10 Leasable Space:	
 	

Landlord's estimate of the number of square feet of area in all structural parts of the Shopping Center used for the sale of goods and services; said area shall be measured from the exterior face of exterior walls and the center line of any walls
which a tenant shares with other tenants or occupants of the Shopping Center, provided that no deduction from leasable space shall be made for columns, stairs, elevators or any interior construction or equipment within the boundaries which comprise
the Leasable Space.
	

1.11 Commencement Date:	
 	

The first to occur of (a) January 1, 1998; or (b) the date on which Tenant opens the Premises for business. Tenant shall commence Tenant's Work promptly after the Delivery Date and shall diligently prosecute the same to completion, and shall open the
Premises for business not later than January 1, 1998.
	

1.12 Delivery Date:	
 	

The date on which Landlord's Work as set forth on Exhibit B attached hereto is substantially completed. The term "substantial completion of the Premises" is defined as the date on which Landlord or its architect notifies Tenant in writing that the
Premises are substantially complete to the extent of Landlord's work specified in Exhibit B hereof. The Delivery Date is anticipated to be not later than October 15, 1997.
	

1.13 Term:	
 	

A period of ten (10) years following (a) the Commencement Date, or (b) if the Commencement Date is not the first day of a month, the first day of the month following the month in which the Commencement Date occurs, as said period may be extended by
any options to extend herein expressly granted.
	 	 	 

2

 

	

1.14 Minimum Rent:	
 	

The fixed rent payable by Tenant during the Term in monthly installments as follows:

	
Lease Years
 
	
 	

Annual
	
 	

Monthly
	
 	

Per Square Foot

	1	 	$	58,080.00	 	$	4,840.00	 	$	22.00
	2	 	$	59,822.40	 	$	4,985.20	 	$	22.66
	3	 	$	61,617.60	 	$	5,134.80	 	$	23.34
	4	 	$	63,465.60	 	$	5,288.80	 	$	24.04
	5	 	$	65,366.40	 	$	5,447.20	 	$	24.76
	6	 	$	67,320.00	 	$	5,610.00	 	$	25.50
	7	 	$	69,352.80	 	$	5,779.40	 	$	26.27
	8	 	$	71,438.40	 	$	5,953.20	 	$	27.06
	9	 	$	73,576.80	 	$	6,131.40	 	$	27.87
	10	 	$	75,794.40	 	$	6,316.20	 	$	28.71
	

First Option Period (if applicable)
	

11	
 	
$	

78,064.80	
 	
$	

6,505.40	
 	
$	

29.57
	12	 	$	80,414.40	 	$	6,701.20	 	$	30.46
	13	 	$	82,816.80	 	$	6,901.40	 	$	31.37
	14	 	$	85,298.40	 	$	7,108.20	 	$	32.31
	15	 	$	87,859.20	 	$	7,321.60	 	$	33.28
	

Second Option Period (if applicable)
	

16	
 	
$	

90,499.20	
 	
$	

7,541.60	
 	
$	

34.28
	17	 	$	93,218.40	 	$	7,768.20	 	$	35.31
	18	 	$	96,016.80	 	$	8,001.40	 	$	36.37
	19	 	$	98,894.40	 	$	8,241.20	 	$	37.46
	20	 	$	101,851.20	 	$	8,487.60	 	$	38.58

	

1.15 Percentage Rent:	
 	

N/A.
	

1.16 Security Deposit:	
 	

N/A.
	

1.17 Permitted Use:	
 	

Solely for the use and occupancy during the Lease Term for the operation of a Carrollton Bank branch and ATM, consistent with other Carrollton Bank branches and ATM's and for services customarily rendered by subsidiaries and affiliates of Carrollton
Bank and for no other use or purpose.
	

1.18 Tenant's Proportionate Share:	
 	

The fraction (expressed as a percentage) determined from time to time by dividing the number of square feet of space in the Premises by the number of square feet of Leasable Space in the Shopping Center, provided, that in certain instances, the
denominator may be reduced by the number of square feet in the Shopping Center subject to a ground lease.
	

1.19 Guarantor:	
 	

N/A.
	 	 	 

3

 

	

1.20 Broker's Name and Address:	
 	

Enterprise Real Estate Services, Inc.

701 Merrill Lynch Building

10320 Little Patuxent Parkway

Columbia, Maryland 21044
	

1.21 Initial Marketing Service Charge:	
 	

$1.00 per square foot of space contained in the Premises.
	

1.22 Opening Contribution:	
 	

$1.00 per square foot.
	

1.23 Lease Year:	
 	

A period of twelve (12) consecutive full calendar months commencing on the first day of the first month after the Commencement Date (unless the Commencement Date is on the first day of a month, in which case the Commencement Date shall be the first
day of the first Lease Year), and ending on the last day of the twelfth (12th) full calendar month thereafter, provided, however, that the first Lease Year shall include the days from the Commencement Date to the first day of the first calendar month
thereafter if the Commencement Date is other than the first day of a calendar month.
	

1.24 Option Term:	
 	

Two five (5) year option terms exercisable on two hundred seventy (270) days written notice given prior to the end of the initial term or first renewal term provided Tenant must not be in default as of the date of exercise or the first day of the
renewal term.
	

1.25 Construction Allowance:	
 	

See Exhibit I

 
 

ARTICLE 2    
    Grant and Term    
    

        2.01    Grant.    In consideration of the rents agreed to be paid and the covenants and
agreements made by the respective parties hereto, Landlord hereby demises and leases to Tenant and Tenant hereby leases from Landlord the Premises, upon the terms and conditions herein provided,
together with the right to use, in common with others entitled thereto, the Common Areas (as hereinafter defined), subject to the terms and conditions of this Lease and to rules and regulations for
the use thereof as prescribed from time to time by Landlord, including, but not limited to, those rules and regulations attached hereto as  Exhibit E. 

        2.02    Term.    Subject to the terms, covenants and agreements contained herein, Tenant shall
have and hold the Premises for the entire Term. After the Commencement Date, Landlord and Tenant each agree to execute and deliver a certificate, in the form attached hereto as  Exhibit D, setting
forth the dates of commencement and expiration of the Term when requested by either party. If the Commencement
Date has not occurred upon the expiration of two (2) years following the date hereof, then this Lease shall thereupon become null and void and shall have no further force and effect in law or
in equity and Landlord shall return the Security Deposit, if any, to Tenant. 

 
 

ARTICLE 3    
    Rent    
    

        3.01    Minimum Rent.    Tenant covenants and agrees to pay Landlord the Minimum Rent in
advance on the first day of each month of the Term; provided, however, that the first payment due shall be made upon the execution of this Lease by Tenant. If the Term commences on a day other than 

4

 

the
first day of the month or ends on a day other than the last day of the month, Tenant shall pay rent for the fractional month within the Term on a per diem basis (calculated on the basis of a
thirty (30) day month). 

        3.02    Percentage Rent.    (a) In addition to Minimum Rent, Tenant shall pay Landlord
percentage rent ("Percentage Rent") as determined by this Section. Percentage Rent shall be determined and payable monthly on or before the tenth (10th)
day following the close of each and every full calendar month of the Term during which the amount of Tenant's year-to-date Gross Sales exceeds Tenant's
year-to-date Gross Sales Breakpoint. For purposes of this computation, the term "Year-to-Date Gross Sales
Breakpoint"shall be one-twelfth (1/12th) of the Base Sales multiplied by the number of months elapsed in the Lease Year in question. Said payments of Percentage
Rent shall be calculated by multiplying (i) the amount of the excess of year-to-date Gross Sales over the Year-to-Date Gross Sales Breakpoint, by
(ii) the percentage specified in Section 1.15, and (iii) deducting therefrom the payments of Percentage Rent, if any, made by Tenant in the previous months of the Lease Year in
question. As soon as practicable after the end of each Lease Year, Percentage Rent paid or payable for such Lease Year shall be adjusted between Landlord and Tenant, the parties hereby agreeing that
Tenant shall pay Landlord or Landlord shall credit to Tenant's account, or (if such adjustment is at the end of the Term), pay Tenant, as the case may be, such amounts as may be necessary to effect
adjustment of the total Percentage Rent for the Lease Year in question in accordance with Section 1.15. 

        (b)   "Gross Sales" means the actual sales prices of all goods, meals, beverages, wares and merchandise sold, leased, licensed
or delivered and the actual charges for all services performed by Tenant or by any subtenant, licensee, concessionaire or other person in, at, from, or arising out of the use of the Premises, whether
for wholesale, retail, cash, or credit, or otherwise, without reserve or deduction for inability or failure to collect, and all other revenue of any nature whatsoever generated through the use and
operation of the Premises. Gross Sales shall include, without limitation, sales and services (i) where the orders therefor originate in, at, from, or arise out of the use of the Premises,
whether delivery or performance is made from the Premises or from some other place, (ii) made or performed by mail, telephone, telecopier or telegraph orders or other electronic means,
(iii) made or performed by means of mechanical, electronic, computer or vending devices in the Premises, and (iv) which Tenant or any subtenant, licensee, concessionaire or other person
occupying the Premises or a portion thereof in the normal and customary course of its business, would credit or attribute to its operations at the Premises or any part thereof. Any deposit not
refunded shall be included in Gross Sales. Each installment or credit sale shall be treated as a sale for the full price in the month during which such sale is made, regardless of whether or when
Tenant receives payment therefor. No franchise or capital stock tax and no income or similar tax based on income shall be deducted from Gross Sales. In the event that items not of a monetary nature
are received by Tenant from the use and occupancy of the Premises, those items shall be included at fair market value for the purpose of calculating Gross Sales. The following shall not be included in
Gross Sales: (i) any exchange of merchandise between stores of Tenant where such exchange is made solely for the convenient operation of Tenant's business and not for the purpose of
consummating a sale made in, at or from the Premises, or for the purpose of depriving Landlord of the benefit of a sale which would otherwise be made in, at or from the Premises, (ii) returns
to shippers or manufacturers, (iii) cash or credit refunds to customers on transactions (not to exceed the actual selling price of the item returned) otherwise included in Gross Sales, and
(iv) amounts collected and paid by Tenant to any governmental authority for any sales or excise tax. 

        (c)   Tenant
shall deliver to Landlord: (i) on or before the tenth (10th) day of each calendar month of the Term, a report signed by Tenant or by an authorized officer
or agent of Tenant, showing the Gross Sales made in the preceding calendar month; and (ii) within sixty (60) days after the close of each Lease Year and after the termination of this
Lease, a statement of Gross Sales for the preceding Lease Year signed and verified as to accuracy by an independent certified public accountant or a 

5

 

financial
officer of Tenant. If Tenant shall fail to deliver such monthly or annual statement to Landlord within the time periods provided herein, (i) Tenant shall be charged Fifty Dollars
($50.00) for each day beyond such time period provided herein that such monthly or annual statement is not delivered to Landlord, and (ii) Landlord shall have the right to assume, for the
purposes of calculating Percentage Rent under this Section 3.02, that Gross Sales for the period in question exceeded the Gross Sales for the period immediately preceding the period in question
by ten percent (10t), which assumption shall be irrebuttable after five (5) days beyond the time period provided for herein for the delivery by Tenant to Landlord of its Gross Sales reports,
but which assumed amount may be increased (but not decreased) to reflect the actual Gross Sales made during the period in question. Further, if Tenant shall fail to deliver any such annual statement
to Landlord within said sixty (60) day period, Landlord shall have the right thereafter to employ an independent accountant to examine such books and records as may be necessary to certify the
amount of Tenant's Gross Sales for the Lease Year in question, and Tenant shall pay to the Landlord the cost thereof as additional rent. Notwithstanding anything to the contrary in this
Section 3.02, Landlord shall have the right, during Tenant's regular business hours, to examine at the Premises or Tenant's Address the originals or copies of sales slips or receipts of Tenant
required to be maintained by Tenant pursuant to clause (d) of this Section 3.02. 

        (d)   Tenant
covenants and agrees that the business upon the Premises shall be operated so that a duplicate sales slip, invoice or non-resettable cash register
receipt, serially numbered, or such other device for recording sales as Landlord approves, shall be issued with each sale or transaction, whether for cash, credit or exchange. For the purpose of
permitting verification by Landlord of any amounts due as rent, Tenant shall keep and preserve for at least three (3) years after the end of each Lease Year, and, during the Term, shall keep at
the Premises or at Tenant's Address, such duplicate sales slips and receipts, and original or duplicate books and records, which shall disclose all information (conforming to and in accordance with
generally accepted accounting principles, consistently applied) required to accurately determine Gross Sales ("Tenant's Records"). In addition, Tenant shall provide to Landlord, on Landlord's request,
copies of Tenant's sales tax, business tax, meals tax, liquor tax, income or other tax returns as filed by Tenant with any applicable municipal, county, state or federal authority and pertaining to
only the Premises. At any time or from time to time after reasonable advance notice to Tenant, Landlord, its agents and accountants, shall have the right during business hours to make any examination
or audit of Tenant's Records which Landlord may desire. If such audit shall disclose a liability for Percentage Rent in excess of the rent theretofore paid by Tenant for any Lease Year, Tenant shall
promptly pay such liability. Should any such liability for Percentage Rent equal or exceed three percent (3%) of the Percentage Rent previously paid for such Lease Year, (i) Tenant shall
promptly pay such liability and, in addition, shall promptly pay the cost of audit and interest (as set forth in Section 3.07) on all additional rent then payable, accounting from the date such
additional rent was due and payable, and (ii) an Event of Default shall be deemed to exist unless, within ten (10) days after Landlord shall have given Tenant notice of such liability,
Tenant shall have furnished Landlord with evidence satisfactory to Landlord demonstrating that such liability for additional rent was the result of good faith error on Tenant's part. 

        (e)   During
the Term, neither Tenant nor any of its shareholders, officers, directors or affiliates shall directly or indirectly engage in, own, operate or manage any
business similar to or in competition with that authorized to be conducted hereunder, or use or permit the use of the same or a similar trade name, within a radius of five (5) miles of the
nearest outside boundary of the Shopping Center; provided, however, that nothing herein shall be construed to prevent operation of any of Tenant's existing stores in their present locations under
their present trade names. In the event of any violation of the covenant contained in the previous sentence, such violation shall constitute an Event of Default hereunder, and, in addition to all
other remedies for an Event of Default provided hereunder, the Gross Sales, as defined in this Lease, of any such business within the restricted radius shall be included in the Gross Sales made from
the Premises, and the Percentage Rent hereunder shall be computed upon the aggregate of the Gross Sales made from the Premises and from such other business. Tenant 

6

 

shall
furnish Landlord with all reports, and records necessary to determine the amount of Gross Sales from such business within the restricted radius. 

        (f)    In
determining the rent payable by Tenant subsequent to an Event of Default, the Percentage Rent for each year of the then unexpired Term shall be deemed to be equal to
the average annual Percentage. Rent payable by Tenant based upon the Gross Sales from the Commencement Date to the occurrence of such Event of Default, or during the two Lease Years preceding such
Event of Default, whichever period is shorter, plus ten percent (10%) per year for each year of the unexpired Term. 

        (g)   Landlord
shall not become or be deemed a partner or a joint venturer with Tenant by reason of the provisions of this Article 3. 

        3.03    Utility Charges.    Tenant agrees to pay as and when the same become due and payable,
all water rents, rates, charges, connection fees, capital connection fees, in-aid fees, tap fees, surcharges, sewer rents and all similar charges relative to the Premises (whether prior or
subsequent to the Term, but subsequent to delivery of possession or Tenant's entering the Premises). Tenant further agree to pay promptly upon receipt of bills therefor, all charges for electricity,
gas, heat, steam, hot water, and other utilities supplied to the Premises (whether prior or subsequent to the Term, but subsequent to delivery of possession or Tenant's entering the Premises) and
whether supplied by Landlord or by a public or private utility company. If Landlord shall supply any or all of the aforesaid services (whether by submetering or otherwise), the charges therefor shall
be deemed additional rent and shall be due and payable as additional rent within ten (10) days after invoice therefor from Landlord. If any charges for utilities payable by Tenant shall not be
paid when due, Landlord shall have the right tQ pay same and charge to Tenant as additional rent, due on demand with interest at the Default Rate (as defined in Section 3.09). 

        3.04    Taxes.    "Real estate taxes" are all
real estate taxes, public and governmental charges and assessments, capital facilities or front-foot taxes, special assessments, sewer and other taxes and charges, substitutions or partial
substitutions for or additions to real estate taxes on the Shopping Center less any amounts paid separately by ground tenants of the Shopping Center, and all costs and fees incurred by Landlord to
contest or negotiate the real estate taxes with public authorities. "Real Estate Taxes" exclude taxes on Tenant's machinery, equipment, inventory or other personal property or assets, which Tenant
agrees to pay. 

        Tenant
shall pay to Landlord its Proportionate Share of all Real Estate Taxes. 

        Tenant's
Proportionate Share of Real Estate Taxes will be prorated for periods at the beginning and end of the Lease Term which are not "full fiscal tax years" of the taxing authority. A
"full fiscal tax year" means July 1 through June 30, or such other 12-month period as the relevant taxing authorities may designate in the future. If Landlord reduces the
real estate taxes on the Shopping Center by contest or negotiation, Landlord shall refund to Tenant its Proportionate Share of the reduction, less a Proportionate Share of the costs of such contest or
negotiation. 

        Tenant's
Proportionate Share of Real Estate Taxes shall be paid in monthly installments on or before the first day of each calendar month, in advance, in an amount estimated by Landlord.
After receipt of all tax, assessment and expense bills attributable to any tax fiscal year, Landlord shall furnish Tenant with a written statement of the actual amount of Tenant's Proportionate Share
of Real Estate Taxes. If the total amount paid by Tenant under this Section for any tax fiscal year shall be less than the actual amount due from Tenant for such tax fiscal year as shown on such
statement, Tenant shall pay to. Landlord the difference between the amount paid by Tenant and the actual amount due, such deficiency to be paid within ten (10) days after demand therefor by
Landlord; and if the total amount paid by Tenant hereunder for any tax fiscal year shall exceed such actual amount due from Tenant for such tax fiscal year, such excess shall be credited against
payments hereunder next due, or at the end of the Term, refunded to Tenant. Landlord may adjust the monthly amount payable by Tenant hereunder 

7

 

based
on Landlord's receipt of Notice of a change in assessment or otherwise to account for a change in the composition of the Shopping Center. 

        Tenant
shall further pay as additional rent all rental or rental use taxes related to the Premises assessed by any governmental authority whether measured by Tenant's gross rental
payments or otherwise, and whether charged against Tenant.orLandlord (but not including income or franchise taxes or any other taxes imposed upon or measured by Landlord's net income, profits, or net
worth unlesse the same shall be imposed in lieu of real estate taxes). Tenant shall further pay and discharge when due any federal, state, county or municipal tax levied or assessed against the
leasehold estate created hereby, and any taxes levied orr assessed against any trade fixtures, furnishings, equipment, leasehold improvements, alterations or additions made by Tenant, or against any
merchandise and personal property of any kind owned, installed or used by Tenant in or upon the Premises during the Term. 

        3.05    Trash Removal.    If Landlord provides trash pickup service for the Shopping Center,
including the provision of one or more trash dumpsters for the use of the Premises (whether alone or with other tenants of the Shopping Center), Tenant shall pay to Landlord as additional rent
Tenant's share of the annual costs of the service, including the costs of cleaning and maintenance of the dumpst~ers and the surrounding areas, plus a fifteen percent (15%) administrative fee. Such
payments shall be based on Landlord's reasonable estimate, subject to adjustment from time to time as hereafter described, and shall be payable in equal monthly installments in advance on the first
day of each month. Landlord's estimate of Tenant's share of the costs of the trash pickup service shall be based on Tenant's use of the service, the amount and type of trash generated by Tenant's
business, frequency of pickup, and other relevant factors as determined by Landlord. Landlord may adjust, from time to time, the amount payable by Tenant. 

        3.06    Insurance.    Tenant shall pay as additional rent Tenant's Proportionate Share of the
cost of liability, property damage, fire, extended coverage, flood, rent loss, malicious mischief, vandalism, workmen's compensation and employees' liability, and any other casualty and liability
insurance with respect to the Common Areas of the Shopping Center and administrative charges in the amount of fifteen percent (15%) of the Common Area insurance costs ("Common
Area Insurance Costs"). Such insurance may be carried at the discretion of Landlord in such amounts and with companies as Landlord shall
determine. Tenant's Proportionate Share of Common Area Insurance Costs shall be paid by Tenant in monthly installments in such amounts as are estimated and billed by Landlord during each twelve
(12) month period commencing and ending on dates designated by Landlord, each installment being due on the first day of each calendar month. Within one hundred twenty (120) days, or such
reasonable time (in Landlord's determination) after the end of each such twelve (12) month period, Landlord shall deliver to Tenant a statement of. such insurance costs for such twelve
(12) month period. Any overpayment or deficiency in Tenant's payment of its Proportionate Share of Common Area Insurance Costs shall be adjusted between Landlord and Tenant, and Tenant shall
pay Landlord or Landlord shall credit Tenant's account (or, if such adjustment is at the end of the Term, shall reimburse Tenant reasonably promptly) in amounts as may be necessary to effect such
adjustment. Upon reasonable notice, Landlord shall make available for Tenant's inspection (which inspection shall be at Tenant's sole cost and expense) at Landlord's office, during normal business
hours, Landlord's records relating to such insurance costs for such preceding twelve (12) month period. Failure of Landlord to provide the statement called for hereunder within the time
prescribed shall not relieve Tenant of its obligations hereunder. 

8

  

        3.07    Net Lease.    This is a net lease and the rent, additional rent and all other
sums
payable hereunder by Tenant shall be paid without notice, demand, setoff, counterclaim, deduction, or defense and, except as otherwise expressly provided herein, without abatement or suspension.
Except as otherwise expressly provided in this Lease, this Lease shall not terminate, nor shall Tenant have any right to terminate this Lease nor shall Tenant be entitled to any abatement or reduction
of rent hereunder. It is the intention of the parties hereto that the obligations of Tenant hereunder shall be separate and independent covenants and agreements, that the rent, additional rent and all
other sums payable by Tenant hereunder shall continue to be payable in all events and that the obligations of Tenant hereunder shall continue unaffected, unless the requirement to pay or perform the
same shall have been terminated pursuant to an express provision of this Lease. 

        3.08    Additional Rent.    Tenant covenants to pay and discharge when the same shall become
due, as "additional rent", all amounts, liabilities and obligations which Tenant has assumed or agreed to pay or discharge pursuant to this Lease
including those enumerated in this Article 3 and elsewhere in this Lease, together with every charge, interest and cost which may be added for non-payment thereof. 

        3.09    Method of Payment, Past Due Rents.    The term "rent" as used in this Lease shall mean
and include all Minimum Rent, Percentage Rent and additional rent payable hereunder. All rent shall be paid to Landlord at the Rental Payment Place or at such other place or to such other person as
Landlord may from time to time direct in writing, or as otherwise provided herein, in lawful money of the United States of America. If Tenant fails to make any such payment when the same becomes due,
then in addition to all rights, powers and remedies provided herein, by law or otherwise in the case of non-payment of rent, Landlord shall be entitled to recover from Tenant the greater
of (a) five percent (5%) of the amount due and (b) one hundred dollars ($100.00) to cover Landlord's additional administrative expenses. Tenant will also pay to Landlord on demand,
interest at the rate of twenty percent (20%) per annum (or the highest rate permitted by applicable law, whichever is lower) (the "Default Rate") on all overdue installments of rent and on overdue
amounts of additional rent relating to obligations which Landlord shall have paid on behalf of Tenant, in each case from the due date thereof until paid in full. 

 
 

ARTICLE 4
  
    Construction of Improvements    
    

        4.01    Condition of Premises.    Landlord agrees that it will, at its sole cost and expense
construct those improvements listed as Landlord's Work on the attached Exhibit B ("Landlord's Work"). Tenant's taking possession of the Premises shall be conclusive evidence as against Tenant
that Landlord's Work has been completed and that the Premises were in satisfactory condition when Tenant took possession unless within five (5) days after delivery of possession, Tenant shall
have delivered to Landlord a list of uncompleted items of Landlord's Work. Tenant acknowledges that no representation or warranty has been made by Landlord as to the condition of the Premises or their
suitability for Tenant's proposed improvements thereto or use thereof or the condition of the Shopping Center, and that Landlord and its agents have made no promises to improve the Premises except as
is set forth in Exhibit B attached hereto. 

        4.02    Tenant's Work.    All improvements to the Premises necessary for Tenant's use and
occupancy thereof and not listed as Landlord's Work on Exhibit B shall be completed by Tenant, at Tenant's expense, and shall hereinafter be referred to as "Tenant's Work". The Tenant's Work shall be
completed by Tenant in conformity with the specifications attached hereto as Exhibit C, plans and specification's therefor approved by Landlord and all applicable laws, orders, rules and regulations
of governmental authorities. Prior to the commencement of the Term, Landlord shall have received full payment from Tenant due Landlord pursuant to Exhibit B and/or Exhibit C and for such other
work as Landlord may have undertaken at Tenant's request. Tenant agrees to submit to Landlord plans and 

9

 

specifications
covering the Tenant's Work, in such detail as Landlord may require, within fifteen (15) days after execution of this Lease and Tenant agrees not to commence work on any of the
Tenant's Work until Landlord has approved such plans and specifications in writing, Landlord's Work in the Premises has been substantially completed and Tenant has obtained all permits and approvals
necessary for the construction of Tenant's Work. Landlord's approval of Tenant's plans and specifications shall not be deemed evidence of the compliance by such plans and specifications with all
applicable laws, orders, rules and regulations of governmental authorities, nor shall it be or be deemed to be a warranty thereof of the soundness or fitness for a particular purpose of the Tenant's
Work. Landlord's approval of the plans and specifications for Tenant's Work is purely for the benefit of Landlord and may not be relied on for any purpose except as set forth herein. At all times
during Tenant's construction, Landlord and its representatives shall have the right to enter upon the Premises for the purpose of inspecting the construction and progress of the Tenant's Work. Tenant
agrees with respect to Tenant's Work that it will (a) not damage, delay or interfere with the prosecution or completion of any work being performed by Landlord or any other person(s) in the
Premises or by Landlord or any other person(s) in or about any other portion of the Shopping Center; (b) comply with all procedures and regulations prescribed by Landlord from time to time for
coordination of such work and activities with any work being performed by Landlord, or any other construction, in the Shopping Center; and (c) conform to all of Landlord's labor regulations and
shall not do or permit anything to be done that might create (or hinder the cessation thereof if extant) any work stoppage, picketing or other labor disruption or dispute which would interfere with
the construction or operation of any work or activities being conducted anywhere by Landlord. If Tenant fails or refuses to comply with any of the foregoing obligations (set forth in items (a),
(b) and (c)), Landlord may require Tenant to cease immediately the performance of such work and activities. Tenant agrees that its entry into possession of the Premises prior to the
Commencement Date shall be subject to all of the terms of this Lease, except the covenants to pay the amounts as set forth in Section 3.01, 3.02 and 3.04. 

        4.03    Failure of Tenant to Open.    If Tenant fails to take possession and to open the
Premises for business fully improved, fixtured, stocked and staffed by the Commencement Date, then such failure shall constitute an Event of Default and the Landlord shall have, in addition to any and
all remedies herein provided, the right at its option to collect not only the Minimum Rent and additional amounts due in accordance with Article 3 hereof, but also additional rent at the rate
of 1/30th of the monthly installment of Minimum Rent then due per day for each and every day that the Tenant shall fail to commence to do business; said additional rent shall be deemed to be
liquidated damages for the benefit of Landlord and shall be in lieu of any Percentage Rent if applicable that might have been earned during such period of the Tenant's failure to open. 

        4.04    Landlord's Option to Terminate Lease.    Notwithstanding any provision herein to the
contrary, if for any reason whatsoever the Premises shall not be delivered to Tenant on or before the outside Delivery Date specified in Section 1.12 hereof, Landlord may elect to terminate
this Lease by giving notice of such election to Tenant. If such notice is given, this Lease and the rights and obligations of the parties hereunder shall thereupon cease and terminate without need for
the execution of any further or other instrument but, if Landlord shall request, Tenant shall execute an instrument, in recordable form, whereby Tenant releases and surrenders all right, title and
interest which it may have in and to the Premises under this Lease or otherwise. 

        4.05.    Measurement of Premises.    The square footage of the Premises stated on page 1 shall
be deemed to be the square footage of the Premises for all purposes of this Lease unless Tenant or Landlord elects (at the expense of the party so electing) to have the Premises field measured. If
such election is made, and as a result thereof, the square footage of the Premises is determined to be different from the square footage of the Premises stated on page 1, the result of such
measurement (measured from the center of interior demising walls and from the outside of exterior walls) shall be deemed to be the square footage of the Premises for all purposes of this Lease;
provided, however, 

10

 

that:
(i) Tenant's right to elect to have the Premises field measured must be exercised prior to Tenant's commencement of work in the Premises, (ii) both parties shall have the right to
be present at the remeasurement of the Premises and shall receive advance notice of the scheduled date and time of any such remeasurement. 

 
 

ARTICLE 5
  
    Use of Premises    
    

        5.01.    Use.    (a) The Premises shall be occupied and used only for the Permitted Use
and for no other purpose whatsoever unless Landlord, in its sole and absolute discretion, consents to a change in such
uses. Tenant acknowledges and agrees that the Permitted Use of the Premises set forth herein is a critical element of the bargain of the parties hereto and that actual and substantial detriment will
result to Landlord and other tenants and occupants of the Shopping Center in the event that a change or deviation in such uses shall occur or be permitted without the express written consent herein
required. In operating the Premises for the Permitted Use, Tenant shall comply with all applicable laws, codes and government regulations. Unless expressly provided in the Permitted Use, Tenant shall
not sell or serve alcoholic beverages nor shall Tenant apply for or obtain any liquor license for the Premises. 

        (b)   From
and after the Commencement Date, Tenant agrees to keep the Premises open and diligently operate the business conducted therein under the Trade Name specified in
Section 1.08, using a sufficient number of adequately trained managers and personnel for efficient service, during the Minimum Hours indicated in paragraph "(d)" of this Section 5.01,
provided that such Minimum Hours are subject to change from time to time by Landlord. Tenant shall carry at all times in the Premises a stock of merchandise of such quantity, character and quality as
to maximize Gross Sales and shall operate its business in one hundred percent (100%) of the Premises. Tenant shall install and maintain at all times displays of merchandise in the display windows on
the Premises. Tenant agrees to conduct Tenant's business at all times in a first class, high-grade manner consistent with reputable business standards and practices in good faith and in
such manner that the high reputation of the Shopping Center is furthered. Tenant agrees that storage and office space in the Premises shall only exist to the extent required for the Permitted Use
conducted on the Premises and shall not be used to service any other operation of Tenant. No auction, fire, liquidation, going-out-of-business or bankruptcy sales
may be conducted in the Premises without the prior written consent of Landlord having been first obtained. 

        (c)   If
Tenant shall request Landlord's approval to open the Premises for business for hours exceeding the Minimum Hours and if Landlord shall approve in writing such
request, Tenant shall pay to Landlord as additional rent, upon demand, any additional costs incurred by Landlord in connection with Tenant's opening of the Premises for business during such additional
hours. 

        (d)   Tenant's
"Minimum Hours" shall mean: Monday through Saturday, 9:30 a.m. to 9:00 p.m.; and Sunday, 11:00 a.m. to 6:00 p.m. 

        (e)   Notwithstanding
anything to the contrary contained herein, in the event Tenant's use of the Premises involves food preparation, Tenant shall install grease traps in the
Premises in order to eliminate the problem of sewer back-ups and health hazards, the type and manner of installation of such grease traps being subject to Landlord's prior written
approval, and shall establish a bi-monthly cleaning program with respect thereto. In addition to the bi-monthly cleaning of the grease traps, Tenant shall use "Cloroben PT", or
a similar type of chemical, in all drain lines, in accordance with the manufacturer's recommendations to help dissolve any grease build-up. Further, a regular and periodic extermination
program shall be instituted. Tenant shall provide Landlord with copies of its cleaning contract for its grease traps and its extermination contracts upon execution of the Lease. 

        (f)    Exhibit H
("Prohibited Uses") is attached hereto and by this reference, incorporated herein. 

11

 

 
 

ARTICLE 6
  
    Quiet Enjoyment and Landlord's Right of Entry    
    

        6.01    Quiet Enjoyment.    If and so long as Tenant shall pay all the rent specified herein
and observe and perform all covenants, agreements and obligations required by it to be observed and performed hereunder, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term
without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions of this
Lease and the mortgages and other matters to which this Lease is subordinate. Landlord expressly reserves the right as to the Shopping Center at any time to do, or permit to be done, any or all of the
following: add or remove buildings or structures; enclose any mall; add to, alter or remove partially or wholly any structure or structures used to enclose any plaza area; change the identity and type
of stores and tenancies and the dimensions thereof; change the name of the Shopping Center in which the Premises are located; close temporarily all or any part of the Common Areas; change the address
or designation of the Premises; provide subterranean and multiple level parking decks; convert Common Areas into Leasable Space and Leasable Space into Common Areas; change the means of access to and
egress from the Shopping Center, and expand or reduce the size of the Shopping center, provided, however, that no such changes shall deny or materially interfere with ingress to, or egress from the
Premises. 

        6.02    Right of Entry.    Tenant agrees that Landlord, its agents, employees or servants or
any person authorized by Landlord may enter the Premises for the purpose of inspecting the condition of the same and to make such repairs to the Premises as Landlord may deem necessary or desirable,
and to exhibit the same to prospective purchasers, mortgagees and tenants of other areas of the Shopping Center and to prospective tenants and to place in and upon the Premises during the last six
months of the Term at such places as may be determined by Landlord "For Rent" signs or notices, and Tenant undertakes and agrees that neither Tenant nor any person within Tenant's control will
interfere with such signs or notices. Such entry, inspection and repairs as Landlord may make of or to the Premises shall not constitute eviction of Tenant in whole or part, and the rent reserved
shall in no way abate while such work is being done by reason of loss or interruption of business of Tenant or otherwise. If Tenant or Tenant's agents or employees shall not be present to permit entry
into the Premises at any time when for any reason entry therein shall be necessary in the reasonable judgment of Landlord to prevent injury or damage, Landlord, Agent or its agents or employees may
enter same by master key or, in the event of an emergency, by forcible entry without liability therefor and without in any manner affecting the obligations, covenants, terms or conditions of this
Lease. Nothing herein contained, however, shall be deemed or construed to impose upon Landlord any obligation or liability whatsoever for care,
supervision, repair, improvement, addition, change or alteration of the Premises or the Shopping Center or any part thereof other than as herein provided. 

        6.03    Certain Matters of Record.    Tenant's rights to the Premises and the use and
enjoyment thereof shall be subject in all respects to the terms and conditions set forth in the Declaration of Covenants, Conditions and Restrictions of the White Marsh Business Community, recorded in
the Land Records of Baltimore County, Maryland at Liber 6836, page 633 as amended by (i) First
Amendment thereto dated February 22, 1990 and recorded among the Land Records in Liber 8414, Folio 383, (ii) Second Amendment thereto dated February 22, 1990 and recorded among
the Land Records in Liber 8414, Folio 393, (iii) Third Amendment thereto dated September 29, 1992 and recorded among the Land Records in Liber 9692, Folio 594 and (iv) Fourth
Amendment thereto dated October 12, 1995 and recorded among the Land Records in Liber 11602, Folio 170. 

        Landlord
as the fee simple owner of the Shopping Center may enter into and/or modify easements, rights of way, or other similar agreements benefitting or burdening the Shopping Center
(collectively, the "Easement") without requiring Tenant's approval therefor if Landlord determines that such Easement is in the best interest of the Shopping Center,  provided, that such Easement will
not 

12

 

materially
adversely affect Tenant's use and enjoyment of the Premises. Tenant shall execute any such Easement within five (5) business days after request therefor by Landlord. 

 
 

ARTICLE 7
  
    Nuisance, Waste, Operations, Rules and Regulations    
    

        7.01    Nuisance.    Tenant shall not perform any acts or carry on any practices which may
injure the Building constructed on the Premises, violate any certificate of occupancy affecting same, constitute a public or private nuisance or a menace to other tenants in the Shopping Center,
produce undue noise, create obnoxious fumes or odors or otherwise cause unreasonable interference with other tenants of the Shopping Center. 

        7.02    Waste, Etc.    Tenant agrees not to: (a) permit any unlawful or immoral
practice to be carried on or committed on the Premises; (b) make any use of or allow the Premises to be used for any purpose that might invalidate or increase the rate of insurance thereof;
(c) keep or use or permit to be kept or used on the Premises any inflammable fluids or explosives without the written permission of the Landlord first had and obtained; (d) use the
Premises for any purpose whatsoever which might create a nuisance
or injure the reputation of the Premises or of the Shopping Center; (e) deface or injure the Premises or the Shopping Center; (f) overload the floors; (g) sell or consume or allow
the sale or consumption of alcoholic beverages on the Premises, unless the same is included in the Permitted Use and appropriate licenses and insurance coverage has been secured; or (h) commit
or suffer any waste in or about the Premises. Tenant agrees to pay as additional rent any increase in the cost of insurance on the Premises to Landlord as a result of any unauthorized use of the
Premises by Tenant, but such payment shall not constitute in any manner a waiver by Landlord of its rights to enforce all of the covenants and provisions of this Lease. 

        7.03    Tenant's Operations.    Tenant covenants and agrees (a) that it will use,
maintain and occupy the Premises, in a careful, safe and proper manner, and will keep the appurtenances, including adjoining sidewalks, in a clean and safe condition, at its own expense; (b) to
keep the inside and outside of al'1 glass in the doors and windows of the Premises clean; (c) that it will not, without the prior written consent of Landlord, place or maintain any merchandise
or other articles in any vestibule or entry to the Premises, on the sidewalks adjacent thereto, or elsewhere on the exterior thereof; (d) that it will maintain the Premises at its own expense
in a clean, orderly and sanitary condition, free of insects, rodents, vermin and other pests; (e) that it will not permit undue accumulations of garbage, trash, rubbish and other refuse, but
will remove the same at its own expense, and will keep such refuse in proper containers within the interior of the Premises until called for to be removed; (f) that it will not use, nor permit
nor suffer the use of any apparatus or instruments for musical or other sound reproduction or transmission in such manner that the sounds emanating therefrom or caused thereby shall be audible beyond
the interior of the Premises; (g) that it will not engage in or permit false or misleading advertising nor engage in any unfair trade practice injurious to the Shopping Center, other tenants of
the Shopping Center or Landlord; (h) that it will not install any radio, television, loudspeaker, or other sound amplification device on the roof or on the exterior of the Premises without
Landlord's prior approval; (i) that it will not permit vending machines, electric video games or pinball machines without Landlord's prior approval; and (j) that it will not permit
pornographic materials, books, or magazines in, upon or about the Premises. 

        7.04    Rules and Regulations.    Tenant covenants and agrees to comply with the rules and
regulations attached hereto as Exhibit E. In the event any violation of any rules and regulations continues after five (5) days following notice to the Tenant of such violation,
beginning on such fifth day Tenant shall, in addition to any and all other remedies of Landlord provided in this Lease for default by Tenant, pay to Landlord, as additional rent and agreed reasonable
compensation for the administrative and other costs which Landlord may incur, Fifty Dollars ($50.00) per day for each 

13

 

violation
for each day such violation continues. Landlord reserves the right to adopt additional rules and regulations in respect to the conduct of Tenant's activities in the Premises and the Shopping
Center, which, upon adoption, shall be deemed incorporated herein, provided that Tenant is given notice thereof. 

 
 

ARTICLE 8
  
    Compliance with Law, Liens, Indemnity    
    

        8.01    Compliance with Law and Contracts.    Tenant shall, at its expense, comply with and
shall cause the Premises and Tenant's employees to comply with all governmental statutes, laws, rules, orders, regulations and ordinances applicable, at anytime during the Term, to the Premises or any
part thereof, or Tenant's use and operation thereof, and any improvements or alterations in the Premises. Tenant shall, at its expense, comply with the requirements of all policies of insurance which
at any time may be in force with respect of the Premises, and with the provisions of all contracts, agreements and restrictions affecting the Premises or any part thereof or the occupancy or use
thereof. 

        8.02    Title and Covenant Against Liens.    Landlord's title is and always shall be paramount
to the title of Tenant and nothing in this Lease contained shall empower the Tenant to do any act which can, shall or may encumber the title of Landlord. Tenant covenants and agrees not to suffer or
permit any lien of mechanics or materialman to be placed upon or against the Shopping Center or the Premises or against the Tenant's leasehold interest in the Premises and, in case of any such lien
attaching, to take and diligently prosecute appropriate action to have the same discharged or bonded and released of record at Tenant's sole expense within fifteen (15) days of the filing of
such lien. Tenant has' no authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be
placed upon the Shopping Center or the Premises, and any and all liens and encumbrances created by Tenant shall attach only to Tenant's interest in the Premises. If any such liens so attach and Tenant
fails to pay and remove same within fifteen (15) days after the filing thereof, Landlord, at its election, may pay and satisfy the same and in such event the sums so paid by Landlord, with
interest from the date of payment at the Default Rate shall be deemed to be additional rent due and payable by Tenant at once without notice or demand. 

        8.03    Toxic and/or Hazardous Substances.    The term "Hazardous Substances," as used in this
Lease shall mean pollutants, contaminants, toxic or hazardous wastes, or other substances, the removal of which is required or the use of which is restricted, prohibited or regulated by any
"Environmental Law," which term shall mean any federal, state or local law or ordinance relating to pollution or protection of the environment. Tenant hereby agrees that (i) no activity will be
conducted on the Premises that will produce any Hazardous Substance, except for such activities that are part of the ordinary course of Tenant's business activities (the "Permitted Activities"),
provided said Permitted Activities are conducted in accordance with all Environmental Laws and Landlord has been notified in advance in writing by Tenant; (ii) the Premises will not be used in
any manner for the storage of any Hazardous Substances except for the temporary storage of Permitted materials, provided such Permitted Materials are properly stored in a manner and location meeting
all Environmental Laws and apprpved in advance in writing by Landlord; (iii) no portion of the Premises will be used as a landfill or a dump; (iv) Tenant will not install any underground
tanks of any type; (v) Tenant will not allow any surface or subsurface conditions to exist or come into existence that constitute, or with the passage of time may constitute a public or private
nuisance; (vi) Tenant will not permit any Hazardous Substances to be brought onto the Premises, except for the Permitted Materials described above. 

        Tenant
hereby indemnifies and saves Landlord harmless from all liabilities and claims arising from the use, storage or placement of any Hazardous Substances upon the Premises or
elsewhere within the Shopping Center or property of Landlord if brought or placed thereon by Tenant, its agents, employees, 

14

 

contractors
or invitees; and Tenant shall (i) within fifteen (15) days after written notice thereof, take or cause to be taken, at its sole expense, such actions as may be necessary to
comply with all Environmental Laws and (ii) within fifteen (15) days after written demand therefor, reimburse Landlord for any amounts expended by Landlord to comply with any
Environmental Laws with respect to the Premises or with respect to any other portions of the Shopping Center as the result of the placement or storage of Hazardous Substances by Tenant, its agents,
employees, contractors or invitees, or in connection with any judicial or administrative investigation or proceeding relating thereto, including, without limitation, reasonable attorneys' fees, fines
or other payments. Tenant hereby grants Landlord, and Landlord's agents and employees (including but not limited to, any engineers or other parties engaged in the testing of Hazardous Substances) the
right to enter upon the Premises for the purpose of inspecting the Premises whether Tenant, its agents, employees, contractors or invitees, has violated any of the provisions of this Section and, if
any Hazardous Substances are found upon the Premises in violation of this Section, Tenant shall pay to Landlord, as additional rent, all costs of the inspection together with all costs incurred by
Landlord in removing, encapsulating or otherwise remediating any Hazardous Substances. The foregoing indemnification shall survive the termination or expiration of this Lease. 

        8.04    Americans With Disabilities Act.    The parties acknowledge that the Americans With
Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and regulations and guidelines promulgated thereunder, as all of the same may be amended
and supplemented from time to time (collectively referred to herein as the "ADA") establish requirements for business operations, accessibility and barrier removal, and that such requirements may or
may not apply to the Premises and Center depending on, among other things: (1) whether Tenant's business is deemed a "public accommodation" or "commercial facility", (2) whether such
requirements are "readily achievable", and (3) whether a given alteration affects a "primary function area" or triggers "path of travel" requirements. The parties hereby agree that:
(a) Landlord shall be responsible for ADA Title III compliance in the Common Areas, except as provided below, (b) Tenant shall be responsible for ADA Title III compliance in the
Premises, including any leasehold improvements or other work to be performed in the Premises under or in connection with this Lease, and (c) Landlord may perform, or require that Tenant
perform, and Tenant shall be responsible for the cost of, ADA Title III "path of travel" requirements triggered by alterations in the Premises. Tenant shall be solely responsible for requirements
under Title I of the ADA relating to Tenant's employees. 

        8.05    Indemnification.    Tenant agrees to pay, and to protect, indemnify and save harmless
Landlord and all beneficiaries, agents and employees of Landlord from and against any and all liabilities, losses, damages, costs, expenses (including all attorney's fees and expenses), causes of
action, suits, claims, demands or judgments of any nature whatsoever (except those arising solely from the gross negligence or willful misconduct of Landlord) arising from (a) any injury to, or
the death of, any person or any damage to property on the Premises or upon adjoining sidewalks, streets or ways, or in any manner
arising out of or connected with the use, non-use, condition or occupation of the Premises or any part thereof or resulting from the condition thereof or of adjoining sidewalks,
(b) any act or omission of Tenant or its agents, contractors or employees, (c) violation by Tenant of any agreement or condition of this Lease, and (d) violation by Tenant of any
contract or agreement to which Tenant is a party or any restriction, statute, law, ordinance or regulation, in each case affecting the Premises or any part thereof or the occupancy or use thereof. 

 
 

ARTICLE 9
  
    Maintenance and Repair of Premises    
    

        9.01    Maintenance by Tenant.    Tenant shall at all times maintain the non-structural
portions of the Premises (including without limitation maintenance of exterior entrances, all of Tenant's signs and all glass and show window moldings) and all floors, ceiling, interior walls,
partitions, doors, fixtures, 

15

 

equipment
and appurtenances thereof (including without limitation lighting, plumbing fixtures, heating, air conditioning, ventilating, electrical and fire detection and protection systems installed by
Landlord or Tenant exclusively serving the Premises and including leaks around ducts, pipes, vents or other parts of the heating, air conditioning, ventilating and plumbing systems which protrude
through the roof of the Premises) in good order, appearance, condition and repair, including all necessary replacements of any said facilities. 

        Tenant
shall change all HVAC filters at least once a month. Tenant shall contract with a reputable HVAC firm approved by Landlord to inspect and service the HVAC system. At least twice
each Lease Year, Tenant shall have the HVAC system inspected by the firm and shall obtain from the firm a written inspection report. Tenant shall keep the service contract and the report at the
Premises and shall furnish copies to Landlord on an annual basis. 

        9.02    Maintenance by Landlord.    (a) Landlord shall maintain, repair and replace
(when necessary) the structural supports, interior demising walls, exterior walls, floor slab, and roof of the Premises to keep them in good, safe, and clean condition. However, if the need for
maintenance, repair, or replacement is connected with the negligence of Tenant, its employees, agents, contractors; or with Tenant's failure to perform anything it is required to perform under this
Lease; or taking any action it is not permitted to take under this Lease (whether or not the failure or the action has continued long enough to constitute a default); or with vandalism, malicious
mischief, or actual or attempted robbery, burglary, or safe burglary, against which Tenant is required to insure, Landlord either may require Tenant to pay the cost of the maintenance, repair, or
replacement, or may require Tenant to do the maintenance or make the repair or replacement. If Landlord notifies Tenant that Tenant must perform the maintenance
or make the repair or replacement, Tenant shall submit its plans or procedures for the maintenance, repair, or replacement to Landlord for its approval within 5 days after Landlord's notice and
shall perform the maintenance or make the repair or replacement as soon as reasonably practicable after Landlord approves Tenant's plans or procedures. Landlord is not obligated to do any other
maintenance or to make any other repairs, replacements or improvements to the Premises or to any equipment or fixtures in the Premises. 

        (b)   If
Tenant refuses or neglects to repair as required hereunder to the reasonable satisfaction of Landlord, Landlord may make such repairs without liability to Tenant for
any loss or damage that may accrue to Tenant's merchandise, fixtures, or other property or to Tenant's business by reason thereof. Upon completion thereof, Tenant shall reimburse Landlord's costs for
making such repairs plus twenty percent (20%) of such costs for overhead and supervision, upon presentation of a bill therefor, as additional rent. 

 
 

ARTICLE 10
  
    Common Areas and Charges    
    

        10.01    Control of Common Areas.    The "Common Areas" are all parking areas, access areas
and other areas and improvements in or near the Shopping Center made available or maintained by Landlord from time to time for the tenants in the Shopping Center and their customers; including without
limitation employee parking areas, truck ways, driveways, loading docks and areas, delivery areas, multi-story parking facilities, package pickup stations, pedestrian sidewalks, enclosed and
unenclosed malls, courts, ramps, landscaped areas, retaining walls, stairways, bus stops, public restrooms, management offices, maintenance and/or security storage areas, sprinkler rooms, interior
fire exit areas not within a tenant's premises, electrical rooms, and lighting facilities; provided, however, that the Premises and premises leased to other tenants of the Shopping Center are
specifically excluded from the definition of the Common Areas provided herein. 

        Landlord
retains exclusive control and management of the Common Areas. Landlord may establish, amend and enforce reasonable written rules and regulations for the Common Areas. 

16

 

Landlord
may change the sizes, locations, shapes, arrangements, areas and facilities of the Common Areas; restrict parking by employees to designated areas; construct surface, subsurface or elevated
parking areas and facilities; establish and change the level or grade of parking surfaces; enforce parking charges (by meters or otherwise) with appropriate provisions for ticket validating; close any
Common Areas temporarily to make repairs or changes, prevent the acquisition of public rights therein, discourage noncustomer parking, or for any other purposes; remove from the Common Areas
trespassers or others who, in Landlord's sole discretion, are disruptive to the ordinary use of the Shopping Center; and perform such other acts in the Common Areas as Landlord in its sole discretion
deems advisable. 

        10.02    License.    All Common Areas and facilities therein are to be used and occupied under
a non-exclusive license, and if the amount of such areas be diminished, Landlord shall not be subject to any liability nor shall Tenant be entitled to any compensation or diminution or
abatement of rent, nor shall such diminution of such areas be deemed constructive or actual eviction. 

        10.03    Maintenance Charges.    (a) Tenant shall pay as additional rent Tenant's
Proportionate Share of the Common Area Maintenance Costs (as hereinafter defined). Such payments shall be based on Landlord's reasonable estimates, subject to adjustment from time to time on
determination of the actual amount of the Common Area Maintenance Costs, and shall be payable in equal monthly installments in advance on the first day of each month. Within one hundred twenty
(120) days (or such additional time as is reasonable under the circumstances) after the end of each "CAM Year" (as hereinafter defined), Landlord shall deliver to Tenant a statement of the
Common Area Maintenance Costs for the most recent CAM Year, and the monthly installments paid or payable shall be adjusted between Landlord and Tenant, the parties hereby agreeing that Tenant shall
pay Landlord or Landlord shall credit Tenant's account, or (if such adjustment is at the end of the Term) pay Tenant, as the case may be, within thirty (30) days after receipt of such
statement, such amounts as may be necessary to effect adjustment to the agreed proportionate share for such CAM Year. "CAM Year," for purposes hereof, shall mean each twelve (12) month period
corresponding to Landlord's fiscal year, which is currently the twelve (12) month period ending on March 31. 

        (b)   "Common
Area Maintenance Costs" shall be the total of all items of cost and expense incurred in operating, managing, equipping, protecting, policing, securing, lighting,
repairing, replacing and maintaining the Common Areas and their facilities, less contributions for particular items allocated and paid separately by any ground tenants in the Shopping Center. Common
Area Maintenance Costs shall include, without limitation, all costs and expenses of (1) maintaining, repairing and replacing the Common Areas as shall be required in Landlord's judgment;
(2) security, fire detection and protection and traffic direction and control; (3) cleaning and removing of rubbish, dirt, debris, water, snow and ice from the Common Areas (including
removal of water, snow and ice from rooftops); (4) planting, landscaping, re-planting and replacing flowers and landscaping; (5) water, drainage and sewage; (6) wages,
health and welfare benefits, pension benefits, union dues, vacations, unemployment taxes and social security taxes; (7) personal property taxes; (8) permits and licenses;
(9) supplies; (10) the operation of loud speakers and any other equipment supplying music; (11) utility services and lighting (including the cost of light bulbs and electric
current); (12) patching, repairing, resurfacing, topping and marking of all parking and drive areas; (13) filling, sealing and supporting of sink holes; (14) depreciation of
machinery and equipment used in the operation of the Common Areas (but not including depreciation of the original cost of acquiring the Common Areas of the Shopping Center); (15) all amounts
payable by Landlord under any reciprocal easement agreement, covenant or easement binding upon the Shopping Center; (16) the charges of any independent contractor who, under contract with
Landlord or its representatives, performs any work in connection with or relating to the operation, maintenance, repair or replacement of any part of the Common Areas; (17) any other expense or
charge, whether or not hereinbefore mentioned, which, in accordance with generally accepted accounting and management principles, would be considered as an expense of managing, operating, 

17

 

maintaining
or repairing the Common Areas, provided, however, that any capital expenditures shall, in accordance with generally accepted accounting principles, be amortized over the useful life of
such asset; and (18) administrative charges in the amount of fifteen percent (15%) of the Common Area Maintenance Costs (exclusive of such administrative charges). 

 
 

ARTICLE 11
  
    Fixtures/Building, Signs and Alterations    
    

        11.01    Fixtures/Building.    Upon expiration or termination of this Lease, Tenant shall
remove all of Tenant's furnishings, fixtures and equipment and restore the Premises as provided in Section 18.01, provided that Tenant shall not remove any equipment, conduits and fixtures
providing water, plumbing, electrical, heating, ventilation, air conditioning, lighting and sewer service to the Premises, all of which shall be the property of Landlord throughout the Term (subject
to Tenant's duty to use and maintain the same) and shall remain the property of Landlord upon expiration of the Term or termination of Tenant's right to possession of the Premises pursuant to
Article 16. 

        11.02    Signs.    Tenant shall have the right to place signs and advertisements on the
exterior and interior of the Premises and the Shopping Center in the locations and subject to the conditions set forth in Exhibit C-1, provided that size, style and appearance of all
exterior signs and all interior signs visible from the exterior of the Premises shall be subject to the approval of Landlord and shall be in compliance with applicable law and Landlord's Design
Criteria set forth on Exhibit C. 

        11.03    Landlord's Lien.    All trade fixtures, personal property, equipment, inventory and
merchandise belonging to Tenant which are, or may be, put into the Premises during the Term, whether exempt or not from sale under execution and attachment under the laws of the state where the
Premises are located, shall at all times be subject to, and Tenant hereby grants to Landlord a first lien and security interest in favor of Landlord, for the purpose of securing all rent, additional
rent or other sums which may become due to Landlord from Tenant under this Lease. Upon default or breach of any covenants of this Lease, Landlord shall have all remedies available under the Uniform
Commercial Code enacted in the state where the Premises are located including, but not limited to, the right to take possession of the above mentioned property and dispose of it by sale in a
commercially reasonable manner. Tenant hereby agrees to execute financing statements and continuation statements upon a request to do so by Landlord for the purpose of recording same in the
appropriate public records in order to perfect Landlord's security interest, serving notice to third parties of the security interest herein granted. Upon the failure of Tenant to so execute upon
request, Tenant does hereby appoint Landlord as Tenant's attorney in fact for said purpose. Tenant agrees to pay, as additional rent, all filing fees, taxes and other costs and expenses incurred by
Landlord in recording such financing statements. 

        11.04    Alterations.    Tenant shall not make any alterations, additions, improvements or
exterior or structural changes to the Premises without obtaining the prior written consent of Landlord; provided that Tenant may make in a first-class manner such interior additions, improvements and
changes in the Premises as Tenant may deem necessary or desirable in connection with the operation of its retail store therein so long as such alterations, additions, improvements and changes are
non-structural and do not affect the storefront. Notwithstanding anything to the contrary contained herein, the design of any alterations made to the Premises shall conform to the Design
Criteria set forth on Exhibit C. 

18

  

 
 

ARTICLE 12
  
    Condemnation    
    

        12.01    Definitions.    "Condemnation" means a taking by exercise of the power of eminent
domain and any conveyance in lieu of such a taking, whether permanent or temporary (if more than 6 months), by any public or quasi-public authority in appropriate proceedings, and includes any
governmental action preventing or substantially restricting use of the Premises for permitted activities or of the Common Areas for access and parking for more than 6 consecutive months. 

        12.02    Extent/Termination.    If 10% or more of the Premises is condemned, or 15% or more of
the Shopping Center or of the parking spaces in the Common Areas is condemned, or if pursuant to any condemnation Landlord determines in its reasonable judgment that the area so condemned renders the
balance of such area ineffective for its intended use, then Landlord may terminate this Lease by notice to Tenant within 90 days after the date of Notice of Condemnation. 

        12.03    Rebuilding.    If less than 10% of the Premises or less than 15% of the Shopping
Center or of the parking spaces in the Common Areas are condemned, or if Landlord does not terminate this Lease under Section 12.02, then Landlord shall promptly rebuild the Premises and the
Shopping Center on the land remaining to a complete unit of a quality and character as close as practical to that which existed before the condemnation (excluding Tenant's merchandise, trade fixtures,
furnishings, and equipment). Tenant shall promptly replace its merchandise, trade fixtures, furnishings, and equipment in the Premises within 30 days after Landlord substantially completes its
rebuilding work. Tenant also shall rebuild Tenant's Work within the same time period if that part of the condemnation award received by Landlord that is attributable to the Premises is not sufficient
for Landlord to rebuild the Premises. Tenant may close Tenant's business during the rebuilding only with Landlord's approval, and if Tenant has so closed, it shall reopen for business by the 30th day
after Landlord substantially completes its rebuilding work. However, Landlord is not required to spend more on the rebuilding than that part of the condemnation award received by Landlord that is
attributable to the area to be rebuilt, less that part of'all expenses, costs, legal fees and court costs incurred by Landlord in connection with such award and that are attributable to that part of
the award. 

        12.04    Effect on Rent.    If Landlord terminates this Lease under Section 12.02, rent
abates as of the date of termination. Landlord shall refund to Tenant that part of any rent paid in advance for a period after
the condemnation. If Landlord does not terminate this Lease under Section 12.02, Minimum Annual Rent, Base Sales, and other charges adjust to reflect the nature and extent of the condemnation
of the Premises, both during the rebuilding and after the rebuilding has been completed. 

        12.05    Award.    Landlord may receive all of any award for the condemnation of the Premises
or the Shopping Center, including any part of the award for the leasehold, reversion, and fee. However, Tenant may make a separate claim against the condemning authority for Tenant's cost to move its
merchandise, furniture, fixtures, leasehold improvements and equipment. 

 
 

ARTICLE 13    
    
    Insurance    
    

        13.01    Insurance to be Provided by Tenant.    Tenant shall maintain throughout the Term, at
its expense, the following insurance: (a) casualty insurance against loss or damage by fire and other risks from time to time included under all-risk policies, including vandalism
and malicious mischief, theft, explosion, and water damage of any type, including sprinkler leakage and bursting and stoppage of pipes, covering the Tenant's Work and Tenant's personal property in the
Premises, including, without limitation, its merchandise, trade fixtures, equipment, furnishings, wall and floor coverings, and drapes, in the amount of the full replacement cost thereof;
(b) commercial general liability insurance (including contractual liability that recognizes this Lease) against claims for bodily injury, personal injury, death or 

19

 

property
damage occurring on, in or about the Premises, such insurance to afford protection of not less than $2,000,000 combined single limit per occurrence and $2,000,000 in the annual aggregate;
(c) workmen's compensation insurance in amounts required by applicable law or statute covering all personnel employed in connection with any work done on or about the Premises; (d) if
the Permitted Use includes sale and/or serving of alcoholic beverages, insurance in the amount of at least $3,000,000 covering any claims arising under applicable law relating to the storage, sale,
use or giving away of any fermented, alcoholic or other intoxicating liquor or beverage, which claims could be asserted against Landlord, Tenant or the Premises; (e) insurance against loss or
damage to plate glass in or on the Premises; and (f) such other insurance on the Premises in such amounts and against such other insurable hazards which at the time are commonly obtained in the
case of property similar to the Premises. 

        13.02    General Insurance Requirements.    Each policy of insurance referred to in
Section 13.01 shall be issued by a company of recognized financial standing authorized to issue such insurance in the state where the Premises are located and having a general policyholders
rating of not less than A and a financial rating of not less than VII in Best's Insurance Reports. Each liability policy shall name as the insured parties thereunder Landlord (including its agents and
other parties designated by Landlord), and Tenant, as their interest may appear, and each other policy shall name Landlord as an additional insured. Each such policy shall be written as a primary
policy which does not contribute to and is not in excess of coverage which Landlord may carry. Every policy which Tenant is obligated to carry under the terms of Section 13.01 shall contain an
agreement by the insurer that it will not cancel or fail to renew or amend such policy or reduce the coverage thereunder except after thirty (30) days prior written notice to Landlord and that
any loss otherwise payable thereunder shall be payable notwithstanding any act or negligence of Tenant which might, absent such agreement, result in a forfeiture of all or a part of such insurance
payment. Prior to commencing Tenant's Work, Tenant shall deliver to Landlord certificates of the insurers, evidencing all of the insurance which is required to be maintained by Tenant hereunder
together with evidence of the payment of all premiums therefor, and Tenant shall, within thirty (30) days prior to the expiration of any such insurance, deliver other certificates of the
insurers evidencing the renewal or replacement of such insurance together with evidence of the payment of all premiums therefor. Should Tenant fail to maintain or renew any insurance provided for in
this Section, or to pay the premium therefor, or to deliver to Landlord any such certificates, then and in any said events, Landlord, at its option, but without obligation to do so may, upon five
(5) days notice to Tenant, procure such insurance, and any sums so expended by Landlord (together with Landlord's reasonable administrative expense in procuring such insurance and interest at
the Default Rate) shall be additional rent hereunder and shall be paid by Tenant to Landlord on the first day of the month next following the date on which such expenditure is made by Landlord. 

        13.03    Waiver of Claims.    Unless caused by the gross negligence or willful misconduct of
Landlord, or its agents and employees, Landlord, and its agents and employees shall not be liable for and Tenant waives all claims for damage to person or property sustained by Tenant or any party
claiming through Tenant resulting from any accident of occurrences in or upon the Premises, the building of which they shall be a part, or the Shopping Center, including but not limited to such claims
for damage resulting from: (i) any equipment or appurtenances becoming out of repair; (ii) Landlord's failure to keep the Shopping Center in repair; (iii) injury done or
occasioned by wind, settling, earth movement or other natural causes; (iv) any defect in or failure of plumbing, heating, or air conditioning equipment, electric wiring or installation thereof,
gas, water, steam pipes, stairs, porches, railings or walks; (v) broken glass; (vi) the backing up of any water or sewer pipe or tank in, upon or about such building or the Premises;
(vii) the escape of steam, gas, coolant or hot water; (viii) water, snow or ice being upon or coming through the roof, walls, skylight, trap door, stairs, walks, Common Areas or any
other place upon or near such building or the Premises or otherwise; (ix) the failing of any fixtures, plaster, stucco or the like; and (x) any act, omission, or negligence of other
tenants or of other persons or occupants of the Shopping Center. 

20

 

        13.04    Change in Coverage.    Landlord and Tenant agree that from time to time during the
Term, Landlord shall have the right to require a change in the type, character and/or amounts of insurance required to be carried by Tenant pursuant to the provisions of this Article 13 and
Tenant shall comply with the requested change in character and/or amount within thirty (30) days of Landlord's request therefor. 

        13.05    Waiver of Right of Recovery.    Neither Landlord nor Tenant shall be liable to the
other or to any insurance company (by way of subrogation or otherwise) insuring the other party for any loss or damage to any building, structure or other tangible property, or any resulting loss of
income, or losses under worker's compensation laws and benefits, even though such loss or damage might have been occasioned by the negligence of such party, its agents or employees if any such loss or
damage is covered by insurance benefitting the party suffering such loss or damage or was required to be covered by insurance pursuant to this Lease. 

 
 

ARTICLE 14
  
    Damage or Destruction    
    

        14.01    Rebuilding by Landlord.    Except if this Lease is terminated under
Section 14.03, if the Premises are damaged by casualty, Landlord shall promptly repair the damage to put the Premises in the same condition as before the casualty (excluding Tenant's leasehold
improvements installed by Tenant as a part of Tenant's Work or installed as additions or alterations, and excluding Tenant's merchandise, trade fixtures, furnishings, and equipment). However, Landlord
is not required to spend more for rebuilding the Premises than that part of the insurance proceeds received by Landlord that is attributable to the Premises, less that part of all expenses, costs,
legal fees and court costs incurred by Landlord in connection with such award and that are attributable to that part of the award. 

        14.02    Rebuilding by Tenant.    Except if this Lease is terminated under
Section 14.03, if any of Tenant's leasehold improvements installed by Tenant as a part of Tenant's Work or installed as additions or alterations, or any of Tenant's merchandise, trade fixtures,
furnishings, and equipment are damaged by casualty, Tenant shall promptly replace it with items as nearly the same as reasonably possible within 30 days after Landlord substantially completes
its rebuilding work. Tenant may close Tenant's Business during the rebuilding only with Landlord's approval, and if Tenant has so closed, it shall reopen for business by the 30th day after Landlord
substantially completes its rebuilding work. 

        14.03    Landlord's Termination Right.    If the Premises are damaged by casualty and the cost
to restore the Premises exceeds 50% of the cost to rebuild the entire Premises, or, if more than 50% of the Shopping Center is destroyed by casualty and Landlord does not intend to rebuild, then
Landlord may terminate this Lease effective as of the date of the casualty by notifying Tenant within 90 days after the casualty. 

        14.04    Proportionate Rent Adjustment.    If the Premises are damaged by casualty, Minimum
Annual Rent, Base Sales, and other charges payable by Tenant shall be adjusted in proportion to the part of the Premises that Tenant cannot occupy because of the damage or the rebuilding work. 

 
 

ARTICLE 15
  
    Assignment, Subletting and Encumbrance    
    

        15.01    Assignment and Subletting.    Tenant shall not assign this Lease or any interest
therein, or sublet the Premises or any portion thereof or permit other persons to occupy the Premises or any part thereof, or grant any license or concession for all or any part of the Premises,
without the prior written consent of Landlord, which consent may be granted or withheld in the sole and absolute discretion of Landlord, and no permitted assignment or subletting shall relieve Tenant
of Tenant's covenants and agreements hereunder. No assignment or transfer of this Lease may be effected by merger, 

21

 

consolidation,
dissolution, operation of law or otherwise without the prior written consent of Landlord, which consent may be granted or withheld in the sole and absolute discretion of Landlord. The
consent of Landlord to any one assignment or sublease pursuant hereto shall not be deemed to be a waiver of the provisions of this Section with respect to any subsequent assignment or sublease. Each
such permitted sublease or assignment shall expressly be made subject to the provisions of this Lease, including without limitation, the use provisions hereof. No assignment or sublet may violate any
then existing exclusive uses of other tenants in the Shopping Center or restrictions otherwise binding on tenants of the Shopping Center nor the primary use of any other tenant in the Shopping Center.
If Tenant assigns its rights and interests under this Lease, the assignee under such assignment shall expressly assume all of the obligations of Tenant hereunder, but such assignment and assumption
shall not amend or otherwise affect any of the rights of Landlord under this Lease nor shall it affect or reduce any of the obligations of Tenant hereunder, and all such obligations shall continue in
full effect as obligations of a principal and not as obligations of a guarantor or surety to the same extent as though no assignment had been made. If Tenant shall assign this Lease or sublease the
Premises for rent or other consideration in excess of the rent payable hereunder, Landlord shall receive all such excess rent or other consideration as additional rent hereunder. The assignee or
sublessee shall be required to make all payments due to Landlord and Landlord shall thereafter, in a prompt manner, remit to Tenant any amounts that may be due Tenant. Tenant shall, concurrently with
the execution and delivery of any such permitted assignment or sublease, deliver a duplicate original thereof to Landlord. If Tenant is a partnership, then any dissolution of Tenant or a withdrawal or
change, whether voluntary, involuntary or by operation of law, of partners owning a controlling interest in Tenant shall be deemed a voluntary assignment of this Lease. If Tenant is a corporation,
then any dissolution, merger, consolidation or other reorganization of Tenant, or any sale or transfer of a controlling interest of the capital stock of Tenant, shall be deemed an assignment of this
Lease. A sale of substantially all of the merchandise on the Premises to one purchaser shall be treated as and deemed to be an assignment of this Lease within the foregoing provisions of this Section. 

        15.02    Encumbrance.    Neither this Lease nor any interest of Tenant in the Premises shall
be mortgaged, pledged or encumbered by Tenant, nor shall Tenant mortgage, pledge or encumber the interest of Tenant in and to any sublease of the Premises or the rental payable thereunder, without the
prior
written consent of Landlord, which consent may be granted or withheld in the sole discretion of Landlord, and Tenant shall not allow or permit any transfer of this Lease or any interest hereunder by
operation of law. Any such mortgage, pledge, encumbrance, sublease or assignment made in violation of this Section shall be void. 

 
 

ARTICLE 16
  
    Default and Bankruptcy    
    

        16.01    Events of Default.    Any of the following occurrences or acts shall constitute an
Event of Default under this Lease: 

        (a)   If
Tenant, at any time during the Term, shall (i) fail to make any payment of rent, additional rent or other sum herein required to be paid by Tenant within five
(5) days after the date such payment has become due, or (ii) fail to pay rent, additional rent or other sums herein required to be paid by Tenant when due on two or more occasions during
any twelve (12) month period, or (iii) fail to cure, immediately after notice from Landlord, any hazardous condition which Tenant has created or suffered in violation of law or this
Lease, or (iv) fail to observe' or perform any of the covenants in respect to assignment, subletting and encumbrance set forth in Article 15; or (v) breach any of the covenants or
provisions set forth in Article 5 or Article 13; or (vi) fail to observe or perform any other provision hereof for thirty (30) days after Landlord shall have delivered to
Tenant written notice of such failure (provided that in the case of any default referred to in this clause (vi) which cannot be cured by the payment of money and cannot with diligence be 

22

 

cured
within such thirty (30) day period, if Tenant shall commence to cure the same within such thirty (30) day period and thereafter shall prosecute the curing of same with diligence
and continuity, then the time within which such failure may be cured shall be extended for such period not to exceed sixty (60) days as may be necessary to complete the curing of the same with
diligence and continuity); or 

        (b)   To
the full extent permissible under the United States Bankruptcy Code, or any successor thereto, (i) if Tenant or any Guarantor shall file a petition in
bankruptcy or for reorganization or for an arrangement pursuant to any present or future federal or state bankruptcy law or under any similar federal or state law, or shall be adjudicated a bankrupt
or insolvent or shall make an assignment for the benefit of its creditors or shall admit in writing its inability to pay its debts generally as they become due, or if a petition or answer proposing
the adjudication of Tenant or any Guarantor as a bankrupt or its reorganization under any present or future federal or state bankruptcy law or any similar federal or state law shall be filed in any
court and such petition or answer shall not be discharged or dismissed sixty (60) days after the filing thereof; or (ii) if a receiver, trustee or liquidator
of Tenant or any Guarantor or of all or substantially all of the assets of Tenant or any Guarantor shall be appointed in any proceeding brought by or against Tenant or any Guarantor and shall not be
discharged within thirty (30) days after such appointment, or if Tenant or any Guarantor shall consent to or acquiesce in such appointment (all of the foregoing events being collectively
referred to as a "Tenant Bankruptcy"); or 

        (c)   If
the Premises shall have been vacated or abandoned; or 

        (d)   If
Tenant fails to take possession of the Premises when possession is tendered by Landlord, or fails to submit plans or other information regarding the Tenant
Improvements for Landlord's approval or to commence and complete construction of the Tenant Improvements to be constructed by Tenant when and as required by the provisions of this Lease or fails to
open its business therein promptly upon such completion as required under Section 5.01(b); or 

        (e)   If
a material adverse change occurs in the financial condition of Tenant and/or Guarantor; or 

        (f)    If
any other occurrence defined elsewhere in this Lease as an Event of Default shall occur. 

        16.02    Remedies.    Upon the occurrence of an Event of Default, Landlord, without notice to
Tenant in any instance (except where expressly provided for below), may do any one or more of the following: 

        (a)   Landlord
may elect to terminate this Lease and the tenancy created hereby by giving notice of such election to Tenant without any right on the part of Tenant to save the
forfeiture by payment of any sum due or by other performance of condition, term, agreement or covenant broken, or Landlord may elect to terminate Tenant's possessory rights and all other rights of
Tenant without thereby terminating this Lease, and Landlord may without notice reenter the Premises, for the purpose of distraint or execution, and to remove Tenant and all other persons and property
from the Premises, and store such property in a public warehouse or elsewhere at the cost of and for the account of Tenant without resort to legal process and without Landlord being deemed guilty of
trespass or becoming liable in any way for any loss or damage occasioned thereby, and to take possession of and sell under distraint the goods and chattels found in the Premises; and/or 

        (b)   Landlord
may sell at public or private sale all or any part of the goods, chattels, fixtures and other property of Tenant which are or may be put in the Premises by
Tenant during the Term, whether exempt or not from sale under execution or attachment, the parties hereby agreeing that said property shall at all times be subject to a lien in favor of Landlord and
shall be chargeable for 

23

 

all
rent and the fulfillment of all other covenants and agreements herein contained. Landlord may apply the proceeds of such sale: first, to the payment of all costs and expenses of conducting the
sale or caring for or storing said property; second, to the payment of any indebtedness, including, without limitation, any indebtedness for rent, which may be or may thereafter become due from Tenant
to Landlord; and third, to pay Tenant, upon Tenant's demand therefor, any surplus remaining after all indebtedness of Tenant to Landlord has been fully paid; and/or 

        (c)   Landlord
may perform, on behalf and at the expense of Tenant, any obligation of Tenant under this Lease which Tenant has failed to perform and of which Landlord shall
have given Tenant notice, the cost of which performance by Landlord, together with interest at the Default Rate from the date of such expenditure, shall be deemed additional rent and shall be payable
by Tenant to Landlord upon demand therefor. Notwithstanding anything to the contrary contained herein, regardless of whether an Event of Default shall have occurred, Landlord may exercise the remedy
described in this clause (c) without any notice to Tenant if Landlord, in its good faith judgment, believes it would be materially injured by failure to take rapid action or if the unperformed
obligation of Tenant constitutes an emergency. 

        (d)   Accelerate
the rent and any other charges, whether or not stated to be additional rent hereunder, for the entire balance of the Term and any renewal or extension thereof
for which Tenant has become bound, or any part of such rent, and any costs and sheriff's, marshall's, constable's or other official's commissions, whether chargeable to Landlord or Tenant, including
watchman's wages, as if by the terms of this Lease said balance of the rent and such other charges and expenses were on that date payable in advance. 

        (e)   Landlord
may exercise any other legal or equitable right or remedy which it may have at law or in equity, including rights of specific performance and/or injunctive
relief, where appropriate. 

        16.03    Damages.    (a) If this Lease is terminated by Landlord pursuant to
Section 16.02, Tenant nevertheless shall remain liable for any rent and damages which may be due or sustained prior to such termination, and all reasonable costs, fees and expenses, including,
without limitation, sheriffs', marshalls', constables' or other officers commissions whether chargeable to Landlord or Tenant, watchmen's wages, brokers' and attorneys' fees, and repair and renovation
costs incurred by Landlord in pursuit of its remedies hereunder, and/or in connection with any bankruptcy proceedings of Tenant or any Guarantor of Tenant, and/or in connection with renting the
Premises to others from time to time (all such rent, damages, costs, fees and expenses being referred to herein as "Termination Damages"), plus
additional
damages ("Liquidated Damages") which, at the election of Landlord, shall be an amount equal to either: 

        (i)    the
rent which, but for the termination of this Lease, would have become due during the remainder of the Term, less the amount or amounts of rent, if any, which Landlord
shall receive during such period from others to whom the Premises may be rented (other than any additional rent received by Landlord as a result of any failure of such other person to perform any of
its obligations to Landlord), in which case Liquidated Damages shall be computed and payable in monthly installments, in advance, on the first day of each calendar month following the termination of
this Lease and shall continue until the date on which the Term would have expired but for such termination, and any action or suit brought to collect any such Liquidated Damages for any month shall
not in any manner prejudice the right of Landlord to collect any Liquidated Damages for any subsequent months by similar preceding, or 

        (ii)   the
present worth (as of the date of such termination) of the rent which, but for the termination of this Lease, would have become due during the remainder of the Term,
less the fair rental value of the Premises, as determined by an independent real estate appraiser selected by Landlord, in which case such Liquidated Damages shall be payable to Landlord in one lump
sum 

24

 

on
demand and shall bear interest at the Default Rate until paid. "Present worth" shall be computed by discounting such amount to present worth at a rate equal to one percentage point above the
discount rate then in effect at the Federal Reserve Bank nearest to the Shopping Center. The Percentage Rent payable with respect to each Lease Year following termination (including the Lease Year in
which such termination shall take place) shall be calculated as set forth in Section 3.02(f). In no event shall Landlord be required to account to Tenant for any amounts by which the fair
rental value shall have exceeded the stipulated Rent at the time of such termination. 

        (b)   If
this Lease is terminated pursuant to Section 16.02, Landlord may (without being obligated to do so) relet the Premises or any part thereof, alone or together
with other premises, for such term or terms (which may be greater or less than the period which otherwise would have constituted the balancee of the Term) and on such terms and conditions (which may
include concessions or free rent and alterations of the Premises) as Landlord may determine, in its sole discretion, but Landlord shall not be liable for, nor shall Tenant's obligations hereunder be
diminished by reason of, any failure by Landlord to relet the Premises or any failure by Landlord to collect any rent due upon such reletting. 

        16.04    Rights Cumulative, Non-Waiver.    No right or remedy herein conferred
upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given
hereunder or now or hereafter existing at law or in equity or by statute. The failure of Landlord to insist at any time upon the strict performance of any covenant or agreement or to exercise any
option, right, power or remedy contained in this Lease shall not be construed as a waiver or relinquishment thereof for the future. The receipt by Landlord of any rent, additional rent or any other
sum payable hereunder with
knowledge of the breach of any covenant or agreement contained in this Lease shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of this Lease shall be deemed to
have been made unless expressed in writing and signed by Landlord. In addition to the other remedies provided in this Lease, Landlord shall be entitled, to the extent permitted by applicable law, to
injunctive relief in case of the violation, or attempted or threatened violation, of any of the covenants, agreements, conditions or provisions of this Lease, or to a decree compelling performance of
this Lease, or to any other remedy allowed to Landlord at law or in equity. Tenant waives any right of redemption, re-entry or restoration of the operation of this Lease under any present
or future law. 

        16.05    Legal Expenses.    If Tenant shall be in default in the performance of any of its
obligations under this Lease, and an action shall be brought for the enforcement thereof in which it shall be finally determined, and no further appeal taken, that Tenant was in default, Tenant shall
pay all attorney's fees and litigation expense incurred or paid by Landlord in connection therewith. In the event Landlord shall, without fault on its part, be made a party to any litigation commenced
by or against Tenant, if Tenant, at its expense, shall fail to provide Landlord with counsel approved by Landlord, Tenant shall pay as additional rent all costs and attorney's fees incurred or paid by
Landlord in connection with such litigation. 

        16.06    Tenant Bankruptcy.    Upon the filing of a petition by or against Tenant under the
Bankruptcy Code and upon such filing of the petition, Tenant, as debtor or as debtor in possession, agrees: 

        (a)   To
perform promptly and fully each and every obligation of Tenant under this Lease, including but not limited to all obligations to pay rent under this Lease, until such
time as this Lease is either rejected or assumed by order of a United States Bankruptcy Court or other United States Court of competent jurisdiction; or deemed rejected by operation of law, pursuant
to 11 U.S.C. §365(c)(4). 

        (b)   Notwithstanding
anything in this Lease to the contrary, all amounts payable by Tenant to or on behalf of Landlord hereunder, whether or not expressly denominated as
rent, shall constitute "rent" 

25

 

for
the purposes of section 502(b)(7) of the Bankruptcy Code, including, without limitation, reasonable attorney's fees incurred by Landlord by reason of Tenant's bankruptcy. 

        (c)   It
is understood and agreed that this is a "lease of real property in a shopping center" as such term is used in the Bankruptcy Code. 

        (d)   Included
within and in addition to any other conditions or obligations imposed upon Tenant in the event of assumption and/or assignment are the following: 

        (1)   In
the event of assignment, the execution and delivery to Landlord of an instrument by which the assignee assumes all of the obligations arising under this Lease from
and after the date of assignment pursuant to the provisions of the Bankruptcy Code. 

        (2)   The
cure of any defaults and the compensation of pecuniary loss resulting from any such default, within thirty (30) days after assumption. 

        (3)   The
use of the Premises solely for the Permitted Use and the maintenance of the quality, quantity and/or lines of merchandise of any goods or services required to be
offered for sale, it being understood and agreed that compliance with the provisions of Article 5 is essential to preserve the tenant mix in the Shopping Center. 

        (4)   In
the event of assignment, the assignee may not exercise any option to extend the Term of the Lease. 

        (5)   Adequate
assurance of future performance under the Lease, for the purposes of assumption and/or assignment, shall include adequate assurance: 

        (i)    of
the source of rent and other consideration due under the Lease, and in the event of assignment, that the financial condition and operating performance of the proposed
assignee and its guarantors, if any, shall be at least equal to the financial condition and operating performance of the Tenant and its guarantors, if any, as of the time the Tenant became the lessee
under the Lease; 

        (ii)   that
any Percentage Rent due under the Lease will not decline substantially; 

        (iii)  that
assumption or assignment of the Lease is subject to all the provisions thereof, including (but not limited to) provisions such as radius, location, use or
exclusivity provisions, and will not breach any such provision contained in any other lease, financing agreement, covenant or other agreement relating to the Shopping Center; 

        (iv)  that
assumption or assignment of the Lease will not disrupt any tenant mix or balance in the Shopping Center. 

        (6)   The
adequate assurance and demonstration in writing by a debtor, debtor in possession or assignee of such debtor in possession of such party's sufficient background,
including, but not limited to, substantial retailing experience in shopping centers of comparable size and financial ability to operate out of the Premises pursuant to the terms and conditions of this
Lease and to meet all other reasonable criteria of Landlord as did Tenant upon execution of this Lease. 

        (7)   The
Premises, at all times, remain a single store and no physical changes of any kind are made thereto unless in compliance with the applicable provisions of this Lease. 

        (e)   Nothing
contained in this Section 16.06 shall be deemed in any manner to limit Landlord's rights and remedies under the Bankruptcy Code, as presently existing or
as may hereafter be amended. 

26

 
 
 

ARTICLE 17
  
    Estoppel Certificates, Subordination, Mortgagee Protection    
    

        17.01    Estoppel Certificates.    Within ten (10) days after request therefor by
Landlord, Tenant agrees to execute and deliver a certificate in the form attached hereto as Exhibit G, to any proposed mortgagee or purchaser of
the Premises, or to Landlord or any other party designated by Landlord, certifying (if such be the case) to any matter reasonably requested by Landlord including without limitation the following:
(a) that Tenant is in full and complete possession of the Premises, such possession having been delivered by Landlord and accepted by Tenant; (b) that any improvements required to be
furnished by Landlord by the terms of this Lease have been completed in all respects to the satisfaction of the Tenant; (c) that this Lease is in full force and effect and has not been amended,
modified, supplemented or superseded except as specifically noted; (d) that there is no existing default on the part of Landlord in the performance of any covenant, agreement or condition
contained in this Lease to be performed by Landlord; (e) that the Tenant does not have any actual or pending claim against the Landlord or any right of offset or defense to any claim by
Landlord; (f) that no rents or other charges have been prepaid by Tenant; (g) the amount of any Security Deposit being held by Landlord; and (h) that the addressee of said
certificate may rely on the representations therein made; and certifying as to the dates of commencement and termination of the Term, the date on which rents commenced to accrue under this Lease, and
the date through which rents and other charges hereunder have been paid. Failure of Tenant to execute and deliver the requested certificate shall constitute an Event of Default and an admission by
Tenant as to the accuracy of all matters set forth in the certificate presented by Landlord. 

        17.02    Subordination/Superiority.    The rights and interests of Tenant under this Lease
shall be subject and subordinate to any mortgage, trust deed or deed of trust that is or may hereafter be placed upon the Shopping Center, or any part thereof containing the Premises and to any and
all advances to be made thereunder and to the interest thereon and all renewals, amendments, modifications, replacements and extensions thereof. Any mortgagee or trustee of the Shopping Center or any
part thereof containing the Premises may elect to give certain rights and interests of Tenant under this Lease priority over the lien of its mortgage, trust deed or deed of trust. In the event of
either such election and upon notification by such mortgagee or trustee to Tenant to that effect, the rights and interests of Tenant under this Lease shall be deemed to be subordinate to or have
priority over, as the case may be, the lien of said mortgage, trust deed, or deed of trust, whether this Lease is dated prior to or subsequent to the date of said mortgage, trust deed or deed of
trust. Tenant shall, within ten (10) days following the request of Landlord or such secured party, execute and deliver whatever instruments may be required to confirm any of the foregoing
matters. 

        17.03    Attornment.    Tenant waives the provisions of any statute or rule of law now or
hereafter in effect which may give or purport to give Tenant any right to terminate or otherwise adversely affect this Lease or Tenant's obligations in the event any foreclosure proceeding is
prosecuted or completed or in the event the Shopping Center or Landlord's interest therein is sold at a foreclosure sale or by deed in lieu of foreclosure. If this Lease is not extinguished upon such
sale or by the purchaser following such sale, then, at the request of such purchaser, Tenant shall attorn to such purchaser and shall recognize such purchaser as the landlord under this Lease. Upon
such attornment such purchaser shall not be (a) bound by any payment of the rent or additional rent more than one (1) month in advance, (b) bound by any amendment to this Lease of
which the mortgagee had no notice and/or did not consent, (c) liable for damages for any breach, act or omission of any prior landlord, or (d) subject to any offsets or defenses which
Tenant might have against any prior landlord. Within ten (10) days after the request of such purchaser, Tenant shall execute, acknowledge and deliver any requisite or appropriate document
submitted to Tenant confirming such attornment. 

27

  

        17.04    Modification for Mortgagee.    If any lender providing construction or
permanent
financing or any refinancing for the Shopping Center requires, as a condition of such financing or refinancing, that modifications to this Lease be obtained, and provided that such modifications
(a) are reasonable, (b) do not adversely affect in a material manner Tenant's use of the Premises as herein permitted, and (c) do not increase the rent and other sums to be paid
by Tenant, then Landlord may submit to Tenant an amendment to this Lease incorporating such required modifications, and Tenant shall execute, acknowledge and deliver such amendment to Landlord within
ten (10) days after Tenant's receipt thereof. 

        17.05    Mortgagee Protection.    Tenant agrees to give any mortgagee or trustee of trust deed
or deed of trust ("mortgagee") of the Shopping Center, by registered or certified mail, a copy of any notice served upon Landlord by Tenant, provided
that prior to such notice Tenant has been notified in writing (by way of service on Tenant of a copy of an Assignment of Rents and Leases, or otherwise) of the address of such mortgagee and to allow
such mortgagee to cure any default of Landlord. If any act or omission by Landlord would give Tenant the right to cancel or terminate this Lease, or to abate the payment of rent, or offset against the
payment of rent or to claim a partial or total eviction, Tenant will not exercise any such right until (i) it shall have given written notice of the act or omission to Landlord and to any
mortgagee whose names and addresses have been furnished to Tenant, and (ii) a reasonable period of time, in light both of the time required to affect a remedy and of the impact of the act or
omission on Tenant's business operations on the Premises, for remedying the act or omission has elapsed following the giving of the notice (which reasonable period of time shall in no event be less
than the period to which Landlord would be entitled under this Lease or otherwise, after similar notice to effect such remedy plus (60) days), during which time Landlord and such mortgagee, or
either of them, their agents or employees, will be entitled to enter upon the Premises and do therein whatever may be necessary to remedy the act or omission. 

 
 

ARTICLE 18    
    
    Surrender and Holdover    
    

        18.01    Surrender.    Upon the expiration or earlier termination of this Lease, Tenant shall
peaceably leave and surrender the Premises to Landlord in good order and condition broom-clean and otherwise in the condition in which Premises are required to be maintained by the terms of this
Lease. Tenant shall
surrender all keys for the Premises to Landlord at the place then fixed for the payment of rent and shall inform Landlord of all combinations on locks, safes, vaults, if any, in the Premises. Tenant
shall, at its expense, remove from the Premises on or prior to such expiration or earlier termination all furnishings, fixtures and equipment situated thereon (including all exterior and interior
signs) which are not or which do not at the end of the Term become the property of Landlord as provided in Section 11.01, and shall, at its expense, remove all alterations or improvements made
to the Premises which Landlord, by notice to Tenant, requires to be removed, and Tenant shall, at its expense, on or prior to such expiration or earlier termination, repair any damage caused by such
removal and restore the Premises. Any property not so removed shall become the property of Landlord, and Landlord may thereafter cause such property to be removed from the Premises and disposed of,
but the cost of any such removal and disposition and the cost of repairing any damage caused by such removal shall be borne by Tenant. 

        18.02    Holdover.    If Tenant shall be in possession of the Premises after the termination
of this Lease, in the absence of any written agreement extending the Term, the tenancy under this Lease shall become one from month to month, terminable by Landlord upon thirty (30) days prior
written notice, at a monthly rental equal to twice the sum of (i) the monthly installment of Minimum Rent payable during the last calendar month during the Term, and (ii) Percentage Rent
(at the rate to be determined as set forth in Section 3.02(f) hereof). Tenant shall also pay as additional rent all other charges payable 

28

 

under
the terms of this Lease, prorated for each month during which Tenant remains in possession. Such month-to-month tenancy shall be subject to all other conditions,
provisions and obligations of this Lease. Tenant shall not interpose any non-compulsory counterclaims in any summary proceeding or other action based on holdover. At any time after a
termination under this Section becomes effective, Landlord may reenter and take possession of the Premises, any rule or law of equity to the contrary notwithstanding. 

        18.03    Termination.    Unless sooner terminated pursuant to the provisions hereof, this
Lease shall terminate on the expiration of the Term without the necessity of any notice from either Landlord or Tenant to terminate the same, and Tenant hereby waives notice to vacate or quit the
Premises and agrees that Landlord shall be entitled to the benefit of all remedies at law or equity respecting the summary recovery of possession of the Premises from a tenant holding over, to the
same extent as if statutory notice had been given. 

 
 

ARTICLE 19    
    
    Security Deposit    
    

        19.01    Security Deposit.    The Security Deposit, if any, specified in Section 1.16
shall be held by Landlord as security for the full and faithful performance by Tenant of each and every term, covenant and condition of this Lease on the part of Tenant to be observed and performed,
and Landlord shall have no liability to pay interest thereon nor shall Landlord be required to keep the Security Deposit separate from its general funds. If any rent or additional rent herein reserved
or any other sums payable by Tenant hereunder shall be overdue and unpaid or should Landlord make payments on behalf of Tenant, or should Tenant fail to perform any of the terms of this Lease, then
Landlord may, at its option, and without prejudice to any other remedy which Landlord may have on account thereof, apply the Security Deposit or so much thereof as may be necessary to compensate
Landlord toward the payment of the rents or other sums due from Tenant, or towards any loss, damage or expense sustained by Landlord resulting from such default on the part of Tenant; and in such
event Tenant shall forthwith upon demand restore the Security Deposit to its original amount, and the sum required to so restore the Security Deposit shall be additional rent hereunder. If Tenant
shall have fully and faithfully complied with all of the terms, covenants and conditions of this Lease, the Security Deposit shall be returned in full to Tenant within thirty (30) days
following the end of the Term or earlier termination of this Lease. If any bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Tenant or its
successors or assigns, Landlord may apply the Security Deposit first to the payment of any rent, additional rent and other amounts due Landlord hereunder, and the balance, if any, of the Security
Deposit may be retained by Landlord in partial liquidation of Landlord's damages. Landlord may deliver the Security Deposit to the purchaser of Landlord's interest in the Premises, in the event that
such interest is sold, and Landlord shall thereupon be discharged from any further liability with respect to the Security Deposit. 

 
 

ARTICLE 20    
    
    Marketing Fund and Advertising    
    

        20.01    Marketing Service; Tenant's Marketing Service Charge.    (a) Landlord shall
establish an advertising and promotional service ("Marketing Service") to furnish and maintain advertising, marketing and sales promotions for the
benefit of the Shopping Center. 

        (b)   The
costs and expenses of the Marketing Service ("Marketing Service Costs") shall include all costs and expenses in
connection therewith, including, but not limited to (i) the services of a marketing director, merchandising director and all staff and outside consultants (including professional marketing
service organizations) deemed necessary by Landlord to carry out effectively the marketing, 

29

 

merchandising
and public relations objectives of the Marketing Service, including, without limitation, all payroll, payroll taxes, travel expenses and employee benefits of any such director and staff;
(ii) all actual costs of advertising and promoting the Shopping Center, including, without limitation, radio, newspaper, television, direct and indirect costs of services, artwork, copy,
printing, paper, stationery and supplies; and (iii) such office rent, equipment and supplies, utilities and telephones as may be deemed necessary by such marketing director. The marketing
director, and all staff and consultants shall be under the exclusive control and supervision of Landlord and Landlord shall have sole authority to employ and discharge same. 

        (c)   In
each Lease Year, Tenant shall pay to Landlord, as additional rent, the Tenant's Marketing Service Charge, which, subject to the provisions of subsection (e) of
this Section, shall initially be equal to the Initial Marketing Service Charge set forth in Section 1.21. 

        (d)   Tenant's
Marketing Service Charge shall be paid by Tenant in tnonthly installments, due on the first day of each calendar month. 

        (e)   Notwithstanding
anything to the contrary contained in this Section 20.01, at the end of each Lease Year or partial Lease Year, as the case may be, or within such
time thereafter as Landlord deems reasonable in its sole discretion, Landlord shall have the right to increase the Marketing Service Charge payable by Tenant for the current Lease Year, by a
percentage equal to the greater of (a) the percentage increase, if any, over the preceding Lease Year or partial Lease Year, of the then current television, radio, print and outdoor advertising
rates of the media used for advertising and promotions in the media market in which the Shopping Center is located, or (b) the percentage increase, if any, over the preceding Lease Year or
partial Lease Year, of the current Consumer Price Index for All Urban Consumers U.S. Cities Average Revised (1982-84=100), published by the Bureau of Labor Statistics of the United States
Department of Labor. 

        20.02    Landlord's Contribution.    Landlord shall contribute an amount equal to at least
twenty-five percent (25%) of the monies collected by the marketing Service from tenants in the Shopping Center during each Lease Year, which sum may be paid in whole or in part by
Landlord, at its option, by providing the services of a Marketing Director and/or other person or persons under Landlord's exclusive control to help organize and implement advertising and promotional
programs, using the monies from the Marketing Service. 

        20.03    Advertising.    Tenant shall not change its Trade Name without the written permission
of Landlord. Tenant, in all advertising, shall identify that the Premises are located in the Shopping Center by specifically setting forth the name of the Shopping Center in all written and oral
advertising engaged in by Tenant concerning the Premises. 

        20.04    Solicitation of Business.    Tenant and Tenant's employees and agents shall not
solicit business in the Common Areas, nor shall Tenant place any handbills or other advertising matter in or on automobiles parked in the parking area or in other Common Areas. 

        20.05    Opening Contribution.    At least sixty (60) days prior to commencement of the
Term, Tenant shall pay to Landlord the Opening Contribution set forth in Section 1.22. The failure of any other tenant to so contribute in whole or in part shall in no way release Tenant from
these obligations hereunder. Landlord shall contribute to the grand opening of the Shopping Center an amount at least equal to the aggregate contributions made by all tenants, including, without
limitation, the Tenant. 

30

 

 
 

ARTICLE 21    
    
    General Provisions    
    

        21.01    Successors.    Subject to Article 15, all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. 

        21.02    Notices.    All notices, demands, requests, consents, approvals and other instruments
required or permitted to be given pursuant to the terms of this Lease shall be in writing and shall be deemed to have been properly given upon receipt or refusal if sent by registered or certified
mail, postage prepaid, return receipt requested; or the day after being sent if sent by a nationally recognized overnight carrier service addressed to Tenant at Tenant's address or Landlord at
Landlord's address, as the case may be. Landlord and Tenant shall each have the right from time to time to specify as its address for purposes of this Lease any other addresses in the United States of
America upon three days notice thereof, similarly given, to the other party. 

        21.03    No Option.    The submission of this Lease for examination does not constitute an
offer to enter into a lease, and this Lease shall become binding only upon execution and delivery hereof by Landlord and Tenant. 

        21.04    No Joint Venture.    The relationship of the parties is that of Landlord and Tenant
only, and nothing in this Lease shall be construed as creating a partnership, joint venture, principal-agent or any other relationship. Except as expressly otherwise provided herein, neither party
shall have any right or power to create any expense or liability chargeable to the other party. 

        21.05    Broker.    Landlord and Tenant represent and warrant to each other that they have not
dealt with any broker or finder entitled to any commission, fee or other compensation by reason of the execution of this Lease except the Broker, if any, specified in Section 1.20, and Landlord
and Tenant agree to indemnify and hold each other harmless from any charge, liability or expense (including attorney's fees) the other may suffer, sustain or incur in respect to any claim for a
commission, finder's fee or other compensation by a broker or finder claiming by, through or under Landlord or Tenant, other than Broker. Landlord will satisfy any obligations to Broker in respect to
this Lease pursuant to a separate written agreement between Landlord and Broker. 

        21.06    Financial Statements.    At the request of Landlord, Tenant shall, not later than
ninety (90) days following the close of each fiscal year of Tenant during the Term and at such other times as Landlord may request, furnish to Landlord a balance sheet of Tenant as of the end
of such fiscal year and a statement of income and expense for the fiscal year then ended together with an opinion of an independent certified public accountant of recognized standing to the effect
that said financial statements have been prepared in conformity with generally accepted accounting principles consistently applied and fairly present the financial condition and results of operations
of Tenant as of and for the period covered. Tenant shall also furnish to Landlord such additional financial reports certified by the chief financial officer of Tenant as Landlord may from time to time
request. 

        21.07    Headings and Captions.    The headings and captions contained in this Lease are
inserted for convenience of reference only, and are not to be deemed a part of or to be used in construing this Lease. 

        21.08    Use of Pronoun, Joint and Several Liability.    The necessity and grammatical changes
required to make the provisions of this Lease apply in the plural sense where there is more than one Tenant and to either corporations, associations, partnerships or individuals, males or females,
shall in all instances be assumed as though in each case fully expressed. If there is to be more than one Tenant, the liability of all such parties for compliance with and performance of the terms and
covenants of this Lease shall be joint and several. 

31

 

        21.09    Partial Invalidity.    If any term or provision of this Lease which obligates the
Landlord or the Tenant to pay an amount or perform an obligation shall be determined to be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and enforced to the
fullest extent permitted by law. 

        21.10    Survival.    Any provision of this Lease which obligates the Landlord or the Tenant
to pay an amount or perform an obligation before the commencement of the Term or after the expiration of the Term shall be binding and enforceable notwithstanding that payment or performance is not
within the Term, and the same shall survive. 

        21.11    Definition of Landlord/Exculpation.    The term Landlord as used in this Lease, so
far as the covenants or obligations on the part of Landlord are concerned, shall be limited to mean and include only the owner or owners at the time in question of the Premises, and in the event of
any transfer or transfers of title thereto, Landlord named herein (and in case of any subsequent transfer or conveyance, the then grantor) shall be automatically relieved from and after the date of
such transfer or conveyance of all liability as respects the performance of any covenants or obligations on the part of Landlord contained in this Lease
thereafter to be performed. It is expressly understood and agreed by and between parties hereto, anything herein to the contrary notwithstanding, that all of the representations, warranties,
covenants, undertakings and agreements herein made on the part of Landlord while in form purporting to be the representations, warranties, covenants, undertakings and agreements by Landlord for the
purposes or with the intention of binding Landlord personally, are made and intended for the purposes only of subjecting Landlord's interest in the Premises and the Shopping Center to the terms of
this Lease and for no other purposes whatsoever, and that in the case of default hereunder by Landlord, the Tenant shall look solely to the interest of Landlord in the Premises and the Shopping Center
for satisfaction of any obligation of Landlord to Tenant. 

        21.12    Time of Essence.    Time is of the essence of this Lease, and all provisions herein
relating thereto shall be strictly construed. 

        21.13    Excuse of Performance.    Anything in this Lease to the contrary notwithstanding,
Landlord shall not be deemed in default with respect to the performance of any terms, covenants and conditions of this Lease if such failure of performance shall be due to any strike,
lock-out, boycott, labor dispute, civil commotion, war-like operation, invasion, rebellion, hostilities, military or usurped power, sabotage, governmental regulation or
control, inability to obtain any material or service, act of God, adverse weather conditions, energy shortage or any other cause whether similar or dissimilar, beyond the reasonable control of
Landlord. 

        21.14    Accord and Satisfaction.    No payment by Tenant or receipt by Landlord of a lesser
amount than the rent or other amounts herein stipulated shall be deemed a waiver, forgiveness or release of the full amount of rent and other amounts due, nor shall any endorsement or statement on any
check or any letter accompanying any check or payment thereof be deemed an accord and satisfaction, and Landlord
may accept such check or payment without prejudice to Landlord's right to recover the balance of such amounts or pursue any other remedy provided in this Lease. 

        21.15    Entire Agreement.    This Lease and the Exhibits, Riders, Addenda and Guaranty, if
any, attached hereto and forming a part hereof, set forth all the covenants, promises, agreements, conditions and understandings between Itandlord and Tenant concerning the Premises, and there are no
covenants, promises, agreements, conditions or understandings, either oral or written, between Landlord and Tenant except those herein set forth. Except as otherwise provided herein, no subsequent
alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant unless reduced to writing and signed by both of them. 

32

 

        21.16    Recordation.    Under no circumstances shall Tenant record this Lease. However, a
Memorandum of Lease may be recorded at the expense of the party requesting such recordation. 

        21.17    Governing Law/Venue/Consent to Jurisdiction.    This Lease shall be construed and
enforced in accordance with the laws of the State. Tenant hereby irrevocably and unconditionally (a) submits itself and its property to the jurisdiction of the courts of the State of Maryland,
the courts of the United States for the District of Maryland, and the appellate courts thereof in any suit, action or other legal proceeding arising out of or relating to this Lease;
(b) consents that any suit, action or other legal proceeding brought by Tenant on account of this Lease shall be brought in one of the courts described in (a) above, and
(c) waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any suit, action or other legal proceeding in any of
those courts set forth in clause (a) above and any claim that any such suit, action or other legal proceeding brought in such court has been "brought in an inconvenient forum and agrees not to
plead or claim the same. Tenant hereby irrevocably and unconditionally consents to the service of any and all process in any suit, action or other legal proceeding by mailing such process, by
certified or registered mail, return receipt requested, to Tenant at its address set forth above. Tenant agrees that a final judgment in any such suit, action or other legal proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable law. 

        21.18    Corporate Tenants.    In the event the Tenant hereunder is a corporation, the persons
executing this Lease on behalf of the Tenant hereby covenant and warrant that: the Tenant is a duly constituted corporation qualified to do business in the state in which the Shopping Center is
located; all Tenant's franchise and corporate taxes have been paid to date; all future forms, reports, fees and other documents necessary for Tenant to comply with applicable laws will be filed by
Tenant when due; and such persons are duly authorized by the board of directors of such corporation to execute and deliver this Lease on behalf of the corporation. 

        21.19    Waiver of Jury Trial.    LANDLORD, TENANT, ALL GUARANTORS AND ALL GENERAL PARTNERS
WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE LANDLORD-TENANT RELATIONSHIP,
TENANT'S USE OR OCCUPANCY OF THE PREMISES OR ANY CLAIM OF INJURY OR DAMAGE. TENANT CONSENTS TO SERVICE OF PROCESS AND ANY PLEADING RELATING TO ANY SUCH ACTION AT THE PREMISES; PROVIDED, HOWEVER, THAT
NOTHING HEREIN SHALL BE CONSTRUED AS REQUIRING SUCH SERVICE AT THE PREMISES. LANDLORD, TENANT, ALL GUARANTORS AND ALL GENERAL PARTNERS OF TENANT WAIVE ANY OBJECTION TO THE VENUE OF ANY ACTION FILED IN
ANY COURT SITUATED IN THE JURISDICTION IN WHICH THE SHOPPING CENTER IS LOCATED AND WAIVE ANY RIGHT UNDER THE DOCTRINE OF FORUM NON CONVENIENS OR OTHERWISE, TO TRANSFER ANY SUCH ACTION FILED IN ANY
SUCH COURT TO ANY OTHER COURT. 

        21.20    Landlord's Management and Income Tax Provisions.    (a) Any services which
Landlord is required to furnish pursuant to the provisions of this Lease may at Landlord's option be furnished from time to time, in whole or in part, by employees of Landlord or by the managing agent
of the Shopping Center or the Land or by one or more third persons, and Landlord further reserves the right to require Tenant to enter into reasonable agreements with such persons in form and content
approved by Landlord for the furnishing of such services. 

        (b)   Landlord
shall have the right, at any time and from time to time, to unilaterally amend the provisions of the Lease if Landlord is advised by its counsel that all or any
portion of the monies paid by Tenant to Landlord hereunder are, or may be deemed to be, unrelated business income within the meaning of the United States Internal Revenue Code, regulation issues
thereunder, and Tenant agrees 

33

 

that
it will execute all documents or instruments necessary to effect such amendment or amendments, provided that no such amendment shall result in Tenant having to pay in the aggregate more money on
account of its occupancy of the Premises under the terms of this Lease as so amended, and provided further that no such amendment or amendments. shall result in Tenant having less rights than it has
prior to any such amendments or receiving under the provisions of this Lease less services than it is entitled to receive, nor services of a lesser quality. 

        21.21    Guaranty.    It shall be a condition precedent to the effectiveness of this Lease
that the Guarantor execute the Guaranty in the form attached hereto as Exhibit F.

        IN
WITNESS WHEREOF, the parties have executed and delivered this Lease under seal as of the day and yedr first above written. 

	ATTEST/WITNESS:	 	LANDLORD:
	

 	
 	

THE AVENUE AT WHITE MARSH, LLC
	

 	
 	

BY:	

Nottingham Village, Inc.,

its sole member
	

 	
 	

 	
 	

(SEAL)
	

	
 	

	
 	

 
	 	 	Name:    P. Douglas Dollenberg,

Title:    President
	

ATTEST/WITNESS:	
 	

TENANT:
	

 	
 	

CARROLLTON BANK, a Maryland corporation
	

/s/  EDWARD R. BOOTEY      	
 	

/s/  S.D. MILLER      	
 	

(SEAL)
	
	 	
	 	 
	Edward R. Bootey	 	By: S.D. Miller

Title: Executive Vice President

34

QuickLinks

INDEX TO LEASE AGREEMENT

ARTICLE 1 Defined Terms

ARTICLE 2 Grant and Term

ARTICLE 3 Rent

ARTICLE 4 Construction of Improvements

ARTICLE 5 Use of Premises

ARTICLE 6 Quiet Enjoyment and Landlord's Right of Entry

ARTICLE 7 Nuisance, Waste, Operations, Rules and Regulations

ARTICLE 8 Compliance with Law, Liens, Indemnity

ARTICLE 9 Maintenance and Repair of Premises

ARTICLE 10 Common Areas and Charges

ARTICLE 11 Fixtures/Building, Signs and Alterations

ARTICLE 12 Condemnation

ARTICLE 13 Insurance

ARTICLE 14 Damage or Destruction

ARTICLE 15 Assignment, Subletting and Encumbrance

ARTICLE 16 Default and Bankruptcy

ARTICLE 17 Estoppel Certificates, Subordination, Mortgagee Protection

ARTICLE 18 Surrender and Holdover

ARTICLE 19 Security Deposit

ARTICLE 20 Marketing Fund and Advertising

ARTICLE 21 General Provisions

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