Document:

Exhibit 10.1

 

WITHOUT
PREJUDICE AND SUBJECT TO CONTRACT

 

	
  DATED

  	
   

  	
  3RD APRIL

  	
   

  	
  2008

  

 

(1)  MONTPELIER MARKETING SERVICES (UK) LIMITED

 

and

 

(2)  NICHOLAS NEWMAN-YOUNG

 

 

COMPROMISE AGREEMENT

 

 

 

THIS AGREEMENT is made this 3rd day of April 2008

 

BETWEEN:

 

(1)           Montpelier Marketing Services (UK)
Limited of 6th Floor, 1 Minster Court, Mincing Lane, London EC3R 7YL
(the “Company”); and

 

(2)           Nicholas Newman-Young of Chinthurst
Farm House, Chinthurst Lane, Bramley, Guildford, Surrey GU5 ODR (the “Employee”).

 

WHEREAS:

 

(A)          The Employee’s employment with the
Company will terminate on the Termination Date by mutual consent.

 

(B)           This Agreement records the terms upon
which the Company and the Employee have agreed to settle all outstanding claims
which the Employee has or may have against the Company, any Group Company or
any of their respective shareholders, officers and employees resulting from the
Employee’s employment or its termination but excluding any claim that the
Employee may have for personal injury in respect of injuries of which the
Employee is not aware at the date of this Agreement or any claim in respect of
accrued pension rights or benefits.

 

(C)           The Employee has sought advice from the
Independent Adviser in relation to the terms and effect of this Agreement and
the Independent Adviser has signed the certificate attached at Schedule 1 to
this Agreement.

 

IT IS AGREED AS
FOLLOWS:

 

1.             DEFINITIONS

 

In this Agreement, the following
words and expressions shall have the following meanings:

 

1.1           “Employment Claims” means:

 

1.1.1               any claim for damages for breach of
contract, including but not limited to wrongful dismissal;

 

1.1.2               any claim for unfair dismissal under Part X
Employment Rights Act 1996;

 

1.1.3               any claim for failure to provide a
written statement of reasons for dismissal under s93 of the Employment Rights
Act 1996;

 

1.1.4               any claim for failure to pay a redundancy
payment, whether a statutory redundancy payment under Part XI Employment
Rights Act 1996 or an enhanced redundancy payment;

 

1.1.5               any claim for failure to allow time off
to seek work during a redundancy situation under s54 of the Employment Rights
Act 1996;

 

 

1.1.6               any claim for unlawful deduction from
wages under Part II Employment Rights Act 1996;

 

1.1.7               any claim for discrimination and/or
harassment and/or victimisation under the Employment Equality (Age) Regulations
2006;

 

1.1.8               any claim under the Employment Rights
Act 1996 in relation to suffering a detriment, dismissal or redundancy for
health and safety reasons;

 

1.1.9               any claim in relation to failure to
limit weekly working time, to ensure rest breaks or to allow the Employee to
take or be paid for statutory annual leave entitlement under the Working Time
Regulations 1998;

 

1.1.10             any claim under the Data Protection Act
1998;

 

1.1.11             any claim under the Employment
Relations Act 1999, including a claim for detriment and/or dismissal resulting
from a failure to allow an employee to be accompanied or to accompany a fellow
employee at a disciplinary/grievance hearing;

 

1.1.12             any claim for failure to comply with
the statutory disciplinary and grievance procedures in the Employment Act 2002
(Dispute Resolution) Regulations 2004; and

 

1.1.13             any claim under the Health and Safety at
Work Act 1974.

 

1.2           “Company Property”
means all property belonging to the Company which is in the Employee’s
possession or control, including but not limited to all documents, disks, credit
cards, equipment, laptop computer, keys and passes.  Documents shall include all documentation
belonging to or relating to the business of the Company or its customers
together with all copies (whether in written, oral, visual or electronic
format, and whether in hard copy form or stored electronically or by any other
means) and shall include facsimiles, letters, reports, agreements, programs or
other documents or data of whatever nature;

 

1.3           “Group Company”
means any holding company or companies of the Company and any subsidiary or
subsidiaries of the Company or of any such holding company and “holding company”
and “subsidiary” shall have the meanings assigned to them respectively by s.736
Companies Act 1985;

 

1.4           “Independent Adviser”
means the individual whose name and firm are identified in Schedule 1; and

 

1.5           “Termination Date”
means the earlier of: (a) 1 May 2009; (b) the date on which the
Employee commences any employment or engagement with any third party (including
any competitor in the insurance/reinsurance industry (in the opinion of the
Company)); or (c) the date on which the Employee commits a material breach
of any of the terms of this Agreement.

 

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2.             TERMINATION OF
EMPLOYMENT

 

2.1           The Employee’s employment by the
Company will terminate with effect from the Termination Date.

 

2.2           During the period up to the earlier of
either: (a) the Company moving into its new office in London; or (b) 1
May 2008, the Employee’s working week shall reduce to three days
(comprising at least 8 hours a day) per week, although for the avoidance of
doubt the Employee’s basic annual salary shall remain unchanged. Thereafter,
the Employee’s working week shall revert to 5 days per week.

 

2.3           Notwithstanding Clauses 2.1 and 2.2, the
Employee will (to the extent required by the Company):

 

2.3.1               not attend the offices of the Company
or any Group Company;

 

2.3.2               not contact any customers or employees
of the Company or any Group Company without the Company’s prior consent except
to the extent required pursuant to Clause 3.1.5;

 

2.3.3               remain reasonably available to provide
assistance with the handover of work and to assist with any work-related
matters as requested by the Company;

 

2.3.4               not undertake work for or otherwise
participate in any way with any other business unless specifically agreed by
the Company in writing; and

 

2.3.5               take all outstanding holiday
entitlement.

 

3.             THE COMPANY’S
OBLIGATIONS

 

3.1           The Company agrees that, without any
admission of liability:

 

3.1.1               it will pay the Employee his usual
salary up to and including the Termination Date in accordance with usual
payroll procedures;

 

3.1.2               it will continue to provide all regular
benefits normally provided to full-time employees of the Company on the same
terms and conditions which applied immediately prior to the date of this
Agreement up to and including the Termination Date;

 

3.1.3               it will pay the Employee a bonus
equivalent to 50% of his annual basic salary regardless of the Company’s
performance in 2008 (subject to appropriate deductions for tax and National
Insurance) with respect to the 2008 calendar year at the time bonuses for Company
staff are normally paid;

 

For
the avoidance of doubt, this Clause 3.1.3 shall be in substitution for any pre-existing
entitlement to a bonus; no bonus amounts shall accrue or 

 

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be
payable to the Employee in respect of the 2009 calendar year; and no bonus
shall be made in respect of the 2008 calendar year in the event that: (i) the
Employee’s employment terminates on the grounds of gross misconduct prior to 31
December 2008; or (ii) the Employee commences work (of whatever
nature) for a competitor in the insurance/reinsurance industry (in the opinion
of the Company) prior to 31 December 2008;

 

3.1.4               provided always that the Employee shall
not commence work (of whatever nature) for a competitor in the insurance/reinsurance
industry (in the opinion of the Company) prior to 1 May 2009, any unvested
Performance Shares and/or Restricted Share Units which have been granted to the
Employee prior to the date of this Agreement will continue to vest up to the Termination
Date subject to and in accordance with the rules of the Montpelier
Holdings Ltd Long-term Incentive Plan (“LTIP Plan”) as
amended from time to time. For the avoidance of doubt, any unvested
entitlements shall automatically lapse immediately on the Employee joining such
a competitor prior to 1 May 2009. 
In addition, to the extent any provision of the LTIP Plan conflicts with
this Agreement regarding the continued vesting of unvested Performance Shares
and/or Restricted Share Units provided for herein the terms of this Agreement
shall take precedence; and

 

3.1.5               it will offer the Employee a non-executive
directorship with a Montpelier Holdings Limited wholly-owned subsidiary (“MHL
Subsidiary”), which non-executive directorship shall enable any unvested  Performance Shares and/or Restricted Share
Units granted pursuant to the LTIP to continue to vest subject to and in
accordance with the LTIP Plan rules whilst such appointment continues.  Such appointment  shall be offered subject to such terms as may
be approved by the Company, and for the avoidance of doubt, the Executive shall
only receive director and meeting fees as a result of his service as a
non-executive director for service occurring after 1 May 2009; and

 

3.1.6               without limiting the foregoing, if,
following his appointment, the Employee is removed from the MHL Subsidiary board
of directors without cause, then he will continue to vest in any unvested
Performance Shares and/or Restricted Share units which have been granted to the
Employee prior to the date of this Agreement according to the original vesting
schedules for such grants.

 

3.2           The payments set out in this Agreement
shall be made to the Employee subject to appropriate deductions for tax and
national insurance and any deductions necessary to account for any outstanding
sums due by the Employee to the Company or any Group Companies.

 

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3.3           The Company agrees to pay any reasonable
legal costs incurred by the Employee in connection with reviewing this
agreement within 28 days of receipt of an appropriate invoice from the
Independent Adviser marked payable by the Company.

 

3.4           The Employee shall immediately repay
any overpayment on demand, and agrees that any such amount may be reclaimed as
a debt.

 

4.             THE EMPLOYEE’S
OBLIGATIONS

 

4.1           The Employee agrees that:

 

4.1.1               they will accept the payments and
benefits set out in Clause 3 above in full and final settlement of all of the
Employment Claims and all other claims and rights of action (whether under
statute, common law, European law or otherwise) in any jurisdiction in the
world which the Employee has or may have against the Company, any Group Company
or any of their respective officers, shareholders and employees (excluding any
claim that the Employee may have for personal injury in respect of injuries the
Employee is not aware of at the date of this Agreement or any claim in respect
of accrued pension rights or benefits), including in particular any claim for
unfair dismissal, redundancy pay or breach of contract, whether arising from
the circumstances leading to the termination of the Employee’s employment or
otherwise;

 

4.1.2               except to the extent required pursuant
to Clause 3.1.5, by no later than 14 days after the date of this Agreement, they
will return all Company Property in accordance with the Company’s instructions
and provide written confirmation to the Company that they have done so;

 

4.1.3               they will immediately notify the
Company in writing in the event that they commence any employment or engagement
with an third party prior to the Termination Date; and

 

4.1.4               the Company will be under no obligation
to look for an alternative role for the Employee during the period leading up
to the Termination Date.

 

5.             CONTINUING
OBLIGATIONS

 

5.1           The Employee agrees that they will:

 

5.1.1               continue to comply with all contractual
and common law obligations of confidentiality in relation to the Company’s
trade secrets and confidential information, including but not limited to clause
7 of their contract of employment dated 24 January 2002 (“Employment Agreement”);

 

5.1.2               continue to comply with clause 4.3 of
the Employment Agreement in respect of the period up to the Termination Date;

 

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5.1.3               comply with the post-termination
restrictions set out at clause 11 of their contract of employment dated 24 January 2002
and, in the event that they are offered employment, consultancy or other
business activity in the period covered by the restrictions, deliver to the person
making such an offer a copy of those restrictions;

 

5.1.4               with effect from the Termination Date,
not represent themselves as being connected with or interested in any way in
the Company;

 

5.1.5               keep the terms of this Agreement and
the circumstances leading up to the termination of their employment
confidential and will not disclose its terms to anyone other than their
immediate family (provided that they provide an undertaking to keep such
information confidential), professional advisers, H.M. Revenue &
Customs, or otherwise as required by law; and

 

5.1.6               not make or cause to be made (directly
or indirectly) any derogatory or critical comments or statements (whether
orally or in writing) about the Company, any Group Company or any of their
respective officers, shareholders and employees.

 

6.             WARRANTIES BY THE
EMPLOYEE

 

6.1           The Employee warrants and confirms
that:

 

6.1.1               apart from the payments and benefits
set out in this Agreement, no other sums or benefits are due to them from the
Company or any Group Company;

 

6.1.2               they have received advice from the
Independent Adviser upon the terms and effect of this Agreement and that based
on that advice they are not aware of any other statutory claims they may have
against the Company other than the Employment Claims, including in particular
the claims specified in clause 4.1.1;

 

6.1.3               they are not aware of any facts or
circumstances that could give rise to a claim against the Company for personal
injury or in respect of accrued pension rights or pension benefits;

 

6.1.4               they have not already commenced and
will not commence proceedings against the Company or any Group Company in
either a court or an Employment Tribunal in respect of the Employment Claims;

 

6.1.5               they have not
received or accepted any offer of employment or engagement of whatever nature which
will provide any form of income at any time after the Termination Date; and

 

6.1.6               they have not at
any time done or omitted to do anything which amounts to a breach of any
express or implied term of their employment or which 

 

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would entitle the Company to terminate the
Employee’s employment without notice or payment in lieu of notice (if the Employee
was still employed).

 

6.2           The Company enters into this Agreement
in reliance of the warranties given by the Employee in Clause 6.1 above.  In the event that the Employee does commence
proceedings against the Company, any Group Company or any of their respective
shareholders, officers and employees in respect of any of the Employment Claims
or otherwise breaches any of the terms of this Agreement, the payments under
Clause 3.1.3 shall become repayable immediately and shall be recoverable by the
Company as a debt together with any interest and costs which may be claimed in
recovering the same.

 

7.             RIGHTS OF THIRD
PARTIES

 

7.1           Any Group Company or any shareholder,
officer, employee or agent of the Company or any Group Company may enforce the
terms of Clauses 4, 5.1 and 6.2 above subject to and in accordance with the
provisions of the Contracts (Rights of Third Parties) Act 1999.

 

7.2           Save as expressly provided in Clause 7.1
above, no term of this Agreement shall be enforceable under the Contracts
(Rights of Third Parties) Act 1999 by a third party.

 

8.             MISCELLANEOUS

 

8.1           Although marked without prejudice and
subject to contract, this Agreement will become open and binding on both
parties upon signature by both parties and completion of Schedule 1 by the
Independent Adviser.

 

8.2           Clause 4.1.1 above shall apply
irrespective of whether or not the Employee is or could be aware of any claim
waived pursuant to that Clause and irrespective of whether or not the claim is
in the express contemplation of the Company and the Employee at the date of
this Agreement.

 

8.3           This Agreement constitutes the entire
agreement between the parties with regard to its subject matter and supersedes
any previous agreements, whether oral or in writing.

 

8.4           To the extent that these may be
applicable to the claims waived under the terms of this Agreement, this
Agreement is an agreement under and complies with the requirements of s203
Employment Rights Act 1996, s77 Sex Discrimination Act 1975 (in relation to
claims under that Act and the Equal Pay Act 1970), s72 Race Relations Act 1976,
Schedule 3A Disability Discrimination Act 1995, Regulation 35 Working Time
Regulations 1998, s288 Trade Union and Labour Relations (Consolidation) Act
1992, s49 National Minimum Wage Act 1998, regulation 41(4) of the
Transnational Information and Consultation etc. Regulations 1999, regulation 9
of the Part-Time 

 

8

 

Workers (Prevention of Less Favourable Treatment)
Regulations 2000, regulation 10 of the Fixed-Term Employees (Prevention of Less
Favourable Treatment) Regulations 2002,  Schedule 4 of the Employment Equality (Sexual Orientation)
Regulations 2003, Schedule 4 of the Employment Equality (Religion or Belief)
Regulations 2003, regulation 40 of the Information and Consultation of
Employees Regulations 2004,  paragraph
12 of the schedule to the Occupational and Personal Pension Schemes
(Consultation by Employers and Miscellaneous Amendment) Regulations 2006   and Schedule 5 of the Employment Equality
(Age) Regulations 2006.

 

8.5           This Agreement is governed by English
law and the parties hereby submit to the exclusive jurisdiction of the English
courts.

 

 

	
  Signed: 

  	
  /s/ Anthony Taylor

  	
   

  	
  Signed:

  	
  /s/ Nicholas Newman-Young

  
	
   

  	
   

  	
   

  	
   

  
	
  For and on behalf of Montpelier Marketing
  Services (UK) Limited

  	
   

  	
  Nicholas Newman-Young

  

 

9

 

SCHEDULE 1

 

Independent
Adviser’s Declaration

 

I, Tas Voutourides of Denton
Wilde Sapte, confirm that:

 

1.             I have given advice to Nicolas
Newman-Young (the “Employee”) as to the terms and effect of this Agreement, and
in particular its effect upon the Employee’s ability to pursue their rights in
an Employment Tribunal.

 

2.             I am a relevant Independent Adviser for
the purposes of, and hereby confirm that this Agreement is intended to satisfy
the conditions set out in s203 Employment Rights Act 1996, s77 Sex
Discrimination Act 1975 (in relation to claims under that Act and the Equal Pay
Act 1970), s72 Race Relations Act 1976, Schedule 3A Disability Discrimination
Act 1995, Regulation 35 Working Time Regulations 1998, s288 Trade Union and
Labour Relations (Consolidation) Act 1992, s49 National Minimum Wage Act 1998,
regulation 41(4) of the Transnational Information and Consultation etc.
Regulations 1999, regulation 9 of the Part-Time Workers (Prevention of Less
Favourable Treatment) Regulations 2000, regulation 10 of the Fixed-Term
Employees (Prevention of Less Favourable Treatment) Regulations 2002,  Schedule 4 of the Employment Equality
(Sexual Orientation) Regulations 2003, Schedule 4 of the Employment Equality
(Religion or Belief) Regulations 2003, regulation 40 of the Information and
Consultation of Employees Regulations 2004,  paragraph 12 of the schedule to the Occupational and
Personal Pension Schemes (Consultation by Employers and Miscellaneous
Amendment) Regulations 2006   and Schedule 5 of the Employment Equality
(Age) Regulations 2006, to the extent that these are applicable to the claims
waived under this Agreement.

 

3.             At the time I gave the advice referred
to in paragraph 1 above there was a contract of insurance or an indemnity
provided for members of a profession or professional body in place, which
covered that advice.

 

 

	
  Name:

  	
  Tas
  Voutourides

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   /s/ Tas Voutourides

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Firm: 

  	
  Denton Wilde Sapte

  	
   

  
	
   

  	
   

  	
   

  
	
  Address of Firm:

  	
  One Fleet Place, London EC4M
  7WS.

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
  31st March 2008EXHIBIT
10.1

 

AGREEMENT
OF LEASE

 

THIS AGREEMENT OF
LEASE (“Lease”) is made this 28th day of March,                              2008,
but effective January 1, 2008, by and between BEAVER DAM LIMITED LIABILITY
COMPANY, a Maryland limited liability company, (“Landlord”) and SINCLAIR
BROADCAST GROUP, INC., a Maryland corporation (“Tenant”).

 

Intending to be
legally bound, Landlord and Tenant agree as set forth below.

 

1.     DEMISED PREMISES. 
Landlord, for the term and subject to the provisions and conditions hereof,
leases to Tenant, and Tenant rents from Landlord, the space (the “Demised
Premises”) containing 66,551 rentable square feet, as shown on Exhibit “A”
attached hereto and made part of hereof, including the area of the rooftop
where antennae and/or satellite dishes are currently located and the outside
area in which satellite dishes are currently located, in the building erected
on certain land (the “Land”) located at 10706 Beaver Dam Road, Cockeysville,
Maryland 21030, together with rights of ingress and egress thereto, and with
the right in common with others to use, to the extent applicable, the elevators
and common passageways, stairways, vestibules, and to pass over and park on
that portion of land owned by Landlord and designated by the Landlord for
Tenant’s parking.  Landlord’s prior
written consent shall be required for the installation of any additional
antennae or satellite dishes, which consent Landlord may withhold in its sole
and absolute subjective discretion; provided Tenant shall have the right to
install up to three (3) additional rooftop satellite dishes not to exceed
two and one-half (2.5) feet in diameter.

 

2.     LEASE TERM. The lease term (the “Lease Term”) shall commence
as of January 1, 2008 (the “Commencement Date”) and will continue until December 31,
2017 and thereafter unless extended or sooner terminated as provided herein;
provided, Tenant shall have the right to extend the Lease Term for an
additional five (5) year period ending December 31, 2021, by
providing written notice thereof to Landlord on or before September 1,
2017.  The parties agree that immediately
prior to the Commencement Date all existing leases between the parties hereto
relating to the Demised Premises shall terminate and be of no further force and
effect.

 

3.     FIXED RENT. Fixed rent (the “Fixed Rent”) is payable by
Tenant beginning on the Commencement Date in monthly installations as set forth
on Exhibit B hereto, representing one-twelfth (1/12) of the annual Fixed
Rent (the “Annual Fixed Rent”) as set forth on Exhibit B hereto, without
prior notice or demand, and without any setoff or deduction whatsoever, in
advance, on the first day of each month at such place as Landlord may
direct.  Annual Fixed Rent shall include
the Operating Expense Allowance as set forth in Section 2.1 of Exhibit “C”
hereto.  Annual Fixed Rent shall be
subject to adjustment as provided in Section 2 of Exhibit “C”
hereto.  If any portion of Fixed Rent,
Additional Rent, or any other sum payable to Landlord hereunder shall be due
and unpaid for more than five (5) days, the balance due shall be subject
to and include a 10 percent penalty.  In
addition, if any portion of Fixed Rent, Additional Rent or any other sum
payable to Landlord hereunder shall be due and unpaid for more than five (5) days
after written notice of non-payment by Landlord to Tenant (which written notice
shall not be required more than two times in any period of twelve (12)
consecutive months), it shall thereafter bear interest at a rate equal to three
percent (3%) per annum greater than the highest prime rate of interest
announced from time to time by Bank of America (or its successor) (the “Default
Rate”), as the same may change from time to time, from the due date until the
date of payment thereof by Tenant, provided,

 

1

 

however, that
nothing herein contained shall be construed or implemented in such a manner as
to allow Landlord to charge or receive interest in excess of the maximum legal
rate then allowed by law.

 

4.     ADDITIONAL RENT. Tenant shall pay as additional rent (“Additional
Rent”) its proportionate share of all operating expenses in the amounts and in
the manner set forth in Exhibit “C” hereto and all other sums due
hereunder.

 

5.     SECURITY DEPOSIT. Tenant has previously deposited with
Landlord the sum of Ninety-Six Thousand Three Hundred Eighty-Nine Thousand
Dollars and Seventy-Eight Cents ($96,389.78) as security for the faithful
performance and observance by Tenant of the terms, provisions and conditions of
this Lease.  It is agreed that in the
event Tenant defaults in respect of any of the terms, provisions and conditions
of this Lease, including, but not limited to, the payment of rent and
additional rent, Landlord may use, apply or retain the whole or any part of the
security so deposited to the extent required for the payment of any rent and
additional rent or any other sum as to which Tenant is in default or for any
sum which Landlord may expend or may be required to expend by reason of Tenant’s
default in respect of any of the terms, covenants and conditions of this Lease,
including but not limited to any damages or deficiency in the reletting of the
leased premises, whether such damages or deficiency accrued before or after
summary proceedings or other re-entry by Landlord.  In the event that Tenant shall fully and
faithfully comply with all of the terms, provisions, covenants and conditions
of this Lease, the security shall be returned to Tenant, without interest,
after the date fixed as the end of the Lease and after delivery of entire
possession of the leased premises to Landlord. 
In the event of a sale of the land and building of which the leased
premises form a part, hereinafter referred to as the Building, or leasing of
the building, Landlord shall have the right to either transfer the security to
the Tenant and Landlord shall thereupon be released by Tenant from all
liability for the return of such security or transfer the security to the new
Landlord in which case Tenant agrees to look to the new Landlord solely for the
return of said security.  Tenant further
covenants that it will not assign or encumber or attempt to assign or encumber
the monies deposited herein as security and that neither Landlord nor its
successors or assigns shall be bound by and such assignment, encumbrance,
attempted assignment or attempted encumbrance.

 

In the event of
any bankruptcy or other insolvency proceeding against Tenant, it is agreed that
all such security deposit held hereunder shall be deemed to be applied by
Landlord to rent, sales tax and other charges due to Landlord for the last
month of the lease term and each preceding month until such security deposit is
fully applied.

 

6.     USE OF DEMISED PREMISES. Tenant covenants and agrees to use
and occupy the Demised Premises for general office purposes and as a broadcast
and satellite receive facility and other uses incidental to and associated with
Class A office buildings and broadcast and satellite receive facilities
and only in conformity with the law. 
Tenant shall not use or permit any use of the Demised Premises which
creates any safety or environmental hazard, or which would: (i) be
dangerous to the Demised Premises, the Building or other tenants, or (ii) be
disturbing to other tenants of the Building, or (iii) cause any increase
in the premium cost for any insurance which Landlord may then have in effect
with respect the Building generally.

 

7.     TENANT IMPROVEMENTS ALLOWANCE.  On January 1, 2013 Landlord shall pay to
Tenant an amount in cash equal to Six Dollars ($6.00) per square foot, equal to
Three Hundred Ninety-Six Thousand Three Hundred Six Dollars ($396,306)(1) which
Tenant may use for general upkeep of and/or tenant improvements to the Demised
Premises, including (without limitation) painting and carpet replacement.

 

(1) The
tenant improvement allowance shall be paid only with respect to 66,051 square
feet of the Demised Premises.

 

2

 

8.     ALTERATIONS OR IMPROVEMENTS BY TENANT.

 

8.1   During
the Lease Term, except for painting and carpet replacement undertaken by Tenant
in accordance with Section 7, Tenant shall not make any alterations,
additions, improvements, redecorating or other changes to the Demised Premises
without the prior written approval (such approval not to be unreasonably
withheld or delayed) of Landlord and then only in accordance with plans and
specifications previously approved in writing by Landlord and subject to such
conditions as Landlord may require, including, without limitations, that,
except as provided in Section 7, Tenant be required to pay for any
increased cost to Landlord occasioned thereby or attributed thereto.  Prior to the termination of this Lease and
without additional notice to Tenant by Landlord, Tenant shall either: (i) remove
any such alterations or additions and repair any damage to the Building or the
Demised Premises occasioned by their installation or removal and restore the
Demised Premises to substantially the same condition as existed prior to the
time when any such alterations or additions were made, or (ii) reimburse
Landlord for the cost of removing such alterations or additions and the
restoration of the Demised Premises. 
Landlord shall determine any such cost as called for in clause (ii) above
prior to the termination of this Lease and Tenant shall reimburse Landlord
within thirty (30) days of receipt of such notice.

 

8.2  After the time of initial occupancy of the
Demised Premises by Tenant, Tenant shall have the right to construct and alter
the Demised premises, subject to paragraph 8.1, provided, however, that such
construction does not include any alterations affecting the exterior or
structural components of the Building (other than the installation of any
rooftop antennae), or any material alterations to the systems of the Building,
including, but not limited to HVAC, electric or plumbing.  Any Tenant construction shall be performed by
Tenant’s contractors and shall be solely Tenant’s responsibility.  All of Tenant’s construction shall be at
Tenant’s expense.

 

8.3  Prior to commencement of construction:

 

(a)  Landlord
shall approve in writing (such approval not to be unreasonably withheld or
delayed) the plans and specifications for any alterations to the Demised
Premises, such approval by Landlord shall not be deemed to be an approval by
Landlord of any work performed pursuant thereto or approval or acceptance by
Landlord of any material furnished with respect thereto or a representation by
Landlord as to the fitness of such work or materials, and shall not give rise to
any liability or responsibility of Landlord.

 

(b)  Landlord
shall approve in writing (such approval not to be unreasonably withheld or
delayed) each contractor and subcontractor (which shall each be of sound
financial status and good reputation in the community and a duly licensed and
qualified professional in the state and, to the extent necessary, township in
which the Building is located) to perform such alterations.

 

(c)  Tenant
shall deliver to Landlord a certificate evidencing each contractor’s liability,
completed operations and worker’s compensation insurance and naming Landlord as
an additional insured, which insurance shall be with a carrier, in amounts and
otherwise on terms satisfactory to Landlord.

 

(d)  Each
contractor shall execute and Tenant shall cause to be filed with the
appropriate governmental agency in a timely manner such waivers and releases of
liens and other documents necessary to insure against imposition of any
mechanics’ and material suppliers’ liens for labor furnished and material
supplied in connection with the alterations and improvements.  Tenant shall deliver copies of such waivers
and releases of liens to Landlord together with evidence of the timely filing
thereof.

 

3

 

8.4  Tenant covenants and agrees:

 

(a)  Except
as set forth in Section 7, to secure and pay for all necessary building
and other permits and fees in connection with the alterations and improvements.

 

(b)  All
construction shall be done in compliance with all applicable laws and
ordinances and in a good and workerlike manner in accordance with the approved
plans and specifications.

 

(c)  To
obtain and deliver to Landlord a Certificate of Occupancy (or its equivalent)
issued by the appropriate governmental authority upon completion of the
construction of the Demised Premises.

 

(d)  To abide
by any collective bargaining agreements or other union contracts applicable to
Tenant, the Building or Landlord.

 

(e)   All materials, supplies and workers shall
enter the Demised Premises and all work shall be performed at times and by
means satisfactory to Landlord.

 

8.5  Tenant and any approved contractor,
subcontractor or material supplier may, after notice to Landlord, enter the
Demised Premises during reasonable times after the execution hereof for the
purpose of constructing the improvements as aforesaid and inspecting and
measuring the Demised Premises, provided that such entry does not, in Landlord’s
reasonable judgment, interfere with the operations of the Building or with
Landlord’s work therein, or that of any other tenants in the Building.  Tenant shall be responsible of any and all
damage or injury caused by such contractors, subcontractors, material suppliers
and Tenant in the course of constructing the improvements, and Tenant’s
obligation to indemnify, defend and hold Landlord harmless set forth in Article 14
shall, include without limitation all work done by Tenant pursuant to this
paragraph 7 and shall commence on the date of execution hereof.

 

8.6  Landlord and its agents or other
representatives shall be permitted to enter the Demised Premises to examine and
inspect the construction of the alterations and improvements, provided, that no
such inspection or examination shall constitute an approval or warranty or give
rise to any liability of Landlord with respect to any thereof.

 

9.     COVENANTS OF LANDLORD. 
Landlord will supply for normal office use during normal business hours
(excluding holidays), which the parties agree are from 8:00 a.m. through
6:00 p.m., Monday through Friday and 9:00 a.m. through 1:00 p.m.
Saturday, except in the case of the first floor production facility and the
server room where the parties agree normal business hours are 24 hours a day, 7
days a week, heat and air conditioning (except that, in the event that such
utilities are separately metered and are paid for by Tenant, Landlord shall
supply only the equipment for such utilities), elevator service (where
applicable), janitorial and cleaning services, electricity, and hot and cold
water, all in amounts consistent with services provided in similar buildings in
the community, provided that: (i) Landlord shall not be liable for failure
to supply or interruption of any such service by reason of any cause beyond
Landlord’s reasonable control (ii) if Tenant’s use of electricity in
Landlord’s judgment exceeds a normal office use level (which includes only
customary office lighting levels and operation of desktop portable office
equipment), Landlord may, at Tenant’s expense, install meters to measure the
electricity consumed on the Demised Premises and bill Tenant for any cost
thereof above normal office use levels; (iii) if Tenant requires
janitorial and cleaning services beyond those provided by Landlord, Tenant
shall arrange for such additional services through Landlord, and Tenant shall
pay Landlord upon receipt of billing therefore; and (iv) if Tenant
requires installation of a separate or supplementary heating, cooling,

 

4

 

ventilating and/or
air conditioning system Tenant shall pay all costs in connection with the
furnishing, installation and operation thereof. 
Landlord shall be responsible, at its sole cost and expense, for
structural repairs and capital improvements (unless otherwise provided for herein)
to the Building, unless such repairs are necessitated by damage caused by the
negligence or misconduct of Tenant or Tenant’s officers, directors, employees,
invitees or agents.  Landlord will
maintain the “Sinclair” sign which is currently affixed on the outside, near
the top of the Building and the sign which is currently located near the street
identifying the tenants in the Building. 
Landlord will supply for normal office use during normal business hours
(excluding holidays), which the parties agree are from 9:00 a.m. through
5:00 p.m., Monday through Friday, security services; provided, that
Landlord shall not be liable for failure to supply or interruption of any such
service by reason of any cause beyond Landlord’s reasonable control.  At all times during the Lease Term, Landlord
will maintain and provide Tenant with the details of a written evacuation plan
for the safety and protection of the Building and its occupants and will permit
Tenant to hold, and assist Tenant in holding, at least one fire drill per
calendar year.

 

10.   COVENANTS OF TENANT. 
Tenant will (at Tenant’s sole cost and expense):

 

10.1       Keep
the Demised Premises in good order and repair, reasonable wear and tear
expected;

 

10.2       Surrender
the Demised Premises at the end of this Lease in the same condition in which
Tenant has agreed to keep it during the Lease Term;

 

10.3       Not
place, erect, maintain or display any sign or other marking of any kind
whatsoever on the windows, doors or exterior walls of the Demised Premises and
not use or place any curtains, blinds, drapes or coverings over any exterior
windows or upon the window surfaces which are visible from the outside of the
Building; except the Tenant shall be permitted to install its standard signage
and logo on Tenant’s entrance door with the approval of Landlord (which
approval shall not be unreasonably withheld or delayed), and Tenant shall be
listed on the directories on the elevator lobby of Tenant’s floor, the Building
lobby and Building exterior in the same manner as other tenants in the
Building;

 

10.4       Be
financially responsible for the maintenance of all plumbing and other fixtures
in the Demised Premises, whether installed by Landlord or by Tenant and for
repairs and replacements to the Demised Premises and the Building made
necessary by reason of damage thereto caused by Tenant or its agents, servants,
invitees or employees.  In the event
Tenant shall fail to perform such maintenance or make such repairs within sixty
(60) days of the date such work becomes necessary, Landlord may, but shall not
be required to, perform such work and charge the amount of the expense
therefore, with interest accruing and payable thereon, all in accordance with Article 18
below;

 

10.5       Comply
with all laws, enactments and regulations of any governmental authority
relating or applicable to Tenant’s occupancy of the Demised Premises and any
covenants, easements and restrictions governing the Land or Building, and
indemnify, defend and hold Landlord harmless from all consequences from its
failure to do so;

 

10.6       Promptly
notify Landlord of any damage to or defects in the Demised Premises, any
notices of violation received by Tenant and of any injuries to persons or
property which occur therein or claims relating thereto;

 

10.7       Subject
to Article 7, pay for any alterations, improvements or additions to the
Demised Premises and any light bulbs, tubes and non-standard Building items
installed by or for Tenant, and allow no lien to attach to the Building with
respect to any of the foregoing;

 

5

 

10.8       Without
the prior written consent of Landlord, not place within the Demised Premises or
bring into the Building (i) any machinery, equipment or other personalty
other than customary office furnishings and small machinery, or any machinery, (ii) equipment
or other personalty consistent with the reception and broadcast of satellite
transmissions or (iii) other personalty having a weight in excess of the
design capacity of the Building;

 

10.9       Not
use the Demised Premises for the generation, manufacture, refining,
transportation, treatment, storage or disposal of any hazardous substance or
waste or for any purpose which poses a substantial risk of damage to the
environment; in this regard Tenant represents that it does not have a Standard
Industrial Classification number as designated in the Standard Industrial
Classifications Manual prepared by the Office of Management and Budget in the
Executive Office of the President of the United States that is any of 22-39
inclusive, 46-49 inclusive, 51 or 76 and will not engage in any activity which
would subject Tenant to the provisions of the Federal Comprehensive
Environmental Response, Liability and Clean-Up Act (42 U.S.C. Section 9601
et seg.), the Federal Water Pollution Control (33 U.S.C.A. Section 1151
et seg.), the Clean Water Act of 1977 (33 U.S.C.A. Section 1251 et
seg.), or any other federal, state or local environmental law, regulation
or ordinance;

 

10.10     Comply
with all rules and regulations which may hereafter be promulgated by
Landlord, including those rules and regulations set forth in Exhibit “D”
hereto and with all reasonable changes and additions thereto upon notice by
Landlord to Tenant (such rules and regulations, together with all changes
and additions thereto, are part of this Lease); Landlord shall notify Tenant in
writing at least fifteen (15) days prior to the promulgation of such rules and
regulations or changes thereto.  Landlord
agrees to enforce such rules and regulations against all tenants in the Building
in a non-discriminating fashion and to take reasonable action to cause a
cessation of any violation of all rules that interfere with Tenant’s use
and quiet enjoyment of the Premises;

 

10.11     Comply
with all reasonable recommendations of Landlord’s or Tenant’s insurance
carriers relating to layout, use storage of materials and maintenance of the
Demised Premises.

 

11.   ASSIGNMENT AND SUBLETTING. 
Tenant shall not assign, pledge, mortgage or otherwise transfer or
encumber this Lease, nor sublet all or any part of the Demised Premises or
permit the same to be occupied or used by anyone other than Tenant or its
employees without Landlord’s prior written consent (such consent not to be
unreasonably withheld or delayed). 
Notwithstanding the foregoing, Tenant shall have the right to assign
this Lease or sublet the Demised Premises or any part thereof, without the
consent of Landlord, to any parent, subsidiary or affiliate of Tenant, or to
the owner of the Mid-Atlantic Sports Network (“MASN”).  Any consent by Landlord hereunder (or
assignment where such consent is not required) shall not constitute a waiver of
strict future compliance by Tenant of the provisions of this Article 11 or
a release of Tenant from the full performance by Tenant with any of the terms, covenants,
provisions or conditions in this Lease. 
For purposes of this Article 11, any transfer or change in control
of Tenant (or any subtenant, assignee or occupant) by operation of law or
otherwise, shall be deemed an assignment hereunder, including, without
limitation, any merger, consolidation, dissolution or any change in the
controlling equity interests of Tenant or any subtenant, assignee, or occupant
(in a single transaction or a series of related transaction).  Any assignment or subletting in contravention
of the provisions of this Article 11 shall be void.  Except with respect to existing tenants and
sub-tenants of the Demised Premises, including (without limitation) MASN, for
which no fee will be due to Landlord, Tenant will pay to Landlord with respect
to each year in which a sub-tenant leases space in the building from Tenant
fifty percent of any “Excess Rent” (as defined below) received from any new
sub-tenant of Tenant in the Demised Premises. 
“Excess Rent” with respect to any year shall be the result obtained by
multiplying (x) the number of square feet of space in the Demised Premises
subleased by a

 

6

 

new sub-tenant by
(y)the excess, if any, of the annual rent per square foot paid by such sublessor
over the “Rental Rate,” (as defined below) then in effect by (z) a
fraction, the numerator of which is the number of months in such year for which
sub-tenant pays rent to Tenant and the denominator of which is twelve
(12).  The “Rental Rate” shall be
Twenty-Two Dollars and Fifty Cents ($22.50) in calendar year 2008 and shall be
increased on January 1, 2009 and on each January 1st
thereafter by three percent (3%).  The
payment required hereby will be remitted by Tenant to Landlord in equal monthly
installments.

 

12.   EMINENT DOMAIN.    If
the whole or more than fifty percent (50%) of the Demised Premises (or use or
occupancy of the Demised Premises) shall be taken or condemned by an
governmental or quasi-governmental authority for any public or quasi-public use
or purpose (including sale under threat of such a taking), or if the owner
elects to convey title to the condemnor by a deed in lieu of condemnation, or
if all or any portion of the Land or Building are so taken, condemned or
conveyed and as a result thereof, in Landlord’s judgment, the Demised Premises
cannot be used for Tenant’s permitted use as set forth herein, then this Lease
shall cease and terminate as of the date when title vests in such governmental
or quasi-governmental authority and the Fixed Rent and Additional Rent shall be
abated on the date when such title vests in such governmental or
quasi-governmental authority.  If less
than fifty percent (50%) of the Demised Premises is taken or condemned by any
governmental or quasi-governmental authority for any public or quasi-public use
or purpose (including sale under threat of such a taking), the Fixed Rent and
Tenant’s proportionate share shall be equitably adjusted )on the basis of the
number of square feet before and after such event) on the date when title vests
in such governmental or quasi-governmental authority and the Lease shall
otherwise continue in full force and effect. 
In any case, Tenant shall have no claim against Landlord for any portion
of the amount that may be awarded as damages as a result of any governmental or
quasi-governmental taking or condemnation (or sale under threat or such taking
or condemnation); and all rights of Tenant to damages therefore are hereby
assigned by Tenant to Landlord.  The
foregoing shall not, however, deprive Tenant of any separate award for moving
expenses, dislocation damages or for any other award which would not reduce the
award payable to Landlord.

 

13.   CASUALTY DAMAGE.

 

13.1       In
the event of damage to or destruction of the Demised Premises caused by fire or
other casualty, or any such damage or destruction to the Building or the
facilities necessary to provide services and normal access to the Demised
Premises in accordance herewith, Landlord, after receipt of written notice
thereof from Tenant, shall undertake to make repairs and restorations with
reasonable diligence as hereinafter provided, unless this Lease has been
terminated by Landlord or Tenant as hereinafter provided or unless any
mortgagee which is entitled to receive casualty insurance proceeds fails to
make available to Landlord a sufficient amount of such proceeds to cover the
cost of such repairs and restoration.  If
(i) the damage is of such nature or extent that, in Landlord’s sole
judgment, more than one hundred and twenty (120) days would be required (with
normal work crews and hours) to repair and restore the part of the Demised
Premises or Building which has been damaged, or (ii) the Demised Premises
or Building is so damaged that, in Landlord’s sole judgment, it is uneconomical
to restore or repair the Demised Premises or the Building, as the case may be,
or (iii) less than two (2) years then remain on the current Lease
Term, Landlord shall so advise Tenant promptly, and either party, in the case
described in clause (i) above, or Landlord, in the cases described in
clauses (ii) or (iii) above, within thirty (30) days after any such
damage or destruction shall have the right to terminate this Lease by written
notice to the other, as of the date specified in such notice, which termination
date shall be no later than thirty (30) days after the date of such notice.

 

13.2       In
the event of fire or other casualty damage, provided this Lease is not
terminated pursuant to the terms of this Article 13 and is otherwise in
full force and effect, and sufficient casualty

 

7

 

insurance proceeds
are available for application to such restoration or repair, Landlord shall
proceed diligently to restore the Demised Premises to substantially its condition
prior to the occurrence of the damage. 
Landlord shall not be obligated to repair or restore any alterations,
additions, fixtures or equipment which Tenant may have installed (whether or
not Tenant has the right or the obligation to remove the same or is required to
leave the same on the Demised Premises as of the expiration or earlier
termination of this Lease) unless Tenant, in a manner satisfactory to Landlord,
assures payment in full of all costs as may be incurred by Landlord in
connection therewith.

 

13.3       Landlord
shall not insure any improvements or alterations to the Demised Premises in
excess of Building standard tenant improvements, or any fixtures, equipment or
other property of Tenant.  Tenant shall,
at its sole expense, insure the value of its leasehold improvements, fixtures,
equipment and personal property located in or on the Demised Premises, for the
purpose of providing funds to Landlord to repair and restore the Demised
Premises to substantially its condition prior to occurrences of the casualty
occurrence.  If there are any such
alterations, fixtures or additions and Tenant does not assure or agree to
assure payment of the cost of restoration or repair as aforesaid, Landlord
shall have the right to restore the Demised Premises to substantially the same
condition as existed prior to the damage, excepting such alterations, additions
or fixtures.

 

13.4       The
validity and effect of this Lease shall not be impaired in any way by the
failure of Landlord to complete repairs and restoration of the Demised Premises
or of the Building within one hundred and twenty (120) days after commencement
of the work, even if Landlord had in good faith notified Tenant that the repair
and restoration could be completed within such period, provided that Landlord proceeds
diligently with such repair and restoration. In the case of damage to the
Demised Premises which is of a nature or extent that Tenant’s continued
occupancy is in the reasonable judgment of Landlord and Tenant substantially
impaired, then the Annual Fixed Rent and Tenant’s Proportionate Share otherwise
payable by Tenant hereunder shall be equitably abated or adjusted for the
duration of such impairment.  Tenant
shall be responsible to repair all of Tenant’s leasehold improvements and all
equipment, fixtures and personal property located in or on the Demised Premises
subject to Article 8. and to such other conditions as Landlord may
require.

 

14.   INSURANCE AND INDEMNIFICATION OF LANDLORD; WAIVER OF SUBROGATION.

 

14.1       Tenant
covenants and agrees to exonerate, indemnify, defend, protect and save
Landlord, its representatives and Landlord’s managing agent, if any, harmless
from and against any and all claims, demands, expenses, losses, suits and
damages as may be occasioned by reason of (i) any accident or matter
occurring on or about the Demised Premises, causing injury to persons or damage
to property (including, without limitation, the Demised Premises), unless such
accident or other matter resulted solely from the negligence or otherwise
tortious act of Landlord or Landlord’s agents or employees, (ii) the
failure of Tenant or any subtenant fully and faithfully to perform the
obligations and observe the conditions of this Lease, and (iii) the
negligence or otherwise tortious act of Tenant, any subtenant or anyone in or
about the Building on behalf of or at the invitation or right of Tenant or
subtenant.  Tenant shall maintain in full
force and effect, at its own expense, comprehensive general liability insurance
(including a contractual liability and fire legal liability insurance
endorsement) naming as an additional insured Landlord and Landlord’s managing
agents, if any, against claims for bodily injury, death or property damage in
amounts not less than $2,000,000 (or such higher limits as may be reasonably
determined by Landlord from time to time) and business interruption insurance
in an amount equal to Tenant’s gross income for twelve (12) months.  All policies shall be issued by companies
having a Best’s financial rating of A or better and a size class rating of XII
(12) or larger or otherwise acceptable to Landlord.  Tenant has previously deposited the policy or
policies of such insurance, or certificates

 

8

 

thereof, with
Landlord and shall deposit with Landlord renewals thereof at least fifteen (15)
days prior to each expiration.  Said
policy or policies of insurance or certificates thereof shall have attached
thereto an endorsement that such policy shall not be canceled without at least
thirty (30) prior written notice to Landlord and Landlord’s managing agent, if
any, that no act or omission of Tenant shall invalidate the interest of
Landlord under said insurance and expressly waiving all rights of subrogation
as set forth below.  At Landlord’s
request, Tenant shall provide Landlord with a letter from an authorized
representative of its insurance carrier stating that Tenant’s current and
effective insurance coverage complies with the requirements contained
herein.  Landlord shall maintain in full
force and effect, at its own expense, comprehensive general liability insurance
(including a contractual liability and fire legal liability insurance
endorsement) naming as an additional insured Tenant against claims for bodily
injury, death or property damage in amounts not less than $2,000,000 (or such
higher limits as may be reasonably determined by Tenant from time to
time).  All policies shall be issued by
companies having a Best’s financial rating of A or better and a size class
rating of XII (12) or larger or otherwise acceptable to Tenant.  Promptly following the Commencement Date,
Landlord shall deposit the policy or policies of such insurance, or
certificates thereof, with Tenant and shall deposit with Tenant renewals
thereof at least fifteen (15) days prior to each expiration.  Said policy or policies of insurance or
certificates thereof shall have attached thereto an endorsement that such
policy shall not be canceled without at least thirty (30) days prior written
notice to Tenant, that no act or omission of Landlord shall invalidate the
interest of Tenant under said insurance and expressly waiving all rights of
subrogation as set forth below.  At
Tenant’s request, Landlord shall provide Tenant with a letter from an
authorized representative of its insurance carrier stating that Landlord’s
current and effective insurance coverage complies with the requirements
contained herein.

 

14.2       Landlord
and Tenant hereby release the other from any and all liability or
responsibility to the other or anyone claiming through or under them by way of
subrogation or otherwise for any loss or damage to property covered by
insurance then in force, even if any such fire or other casualty occurrence
shall have been caused by the fault or negligence of the other party, or anyone
for whom such party may be responsible. 
This release shall be applicable and in full force and effect, however,
only to the extent of and with respect to any loss or damage occurring during
such time as the policy or policies of insurance covering said loss shall
contain a clause or endorsements to the effect that this release shall not
adversely affect or impair said insurance or prejudice the right of the insured
to recover thereunder.  To the extent
available, Landlord and tenant further agree to provide such endorsements for
said insurance policies agreeing to the waiver of subrogation as required
herein.

 

15.   INSPECTION; ACCESS; CHANGES IN BUILDING FACILITIES.

 

15.1       Landlord
and its agents or other representatives shall be permitted to enter the Demised
Premises at reasonable times (i) to examine, inspect and protect the
Demised Premises and the Building and (ii) during the last six (6) months
of the original or any renewal term, to show it to prospective tenants and to
affix to any suitable part of the exterior of the Building in which the Demised
Premises is located a notice for letting the Demised Premises or the Building
or (at any time during the original or any renewal term) selling the Building.

 

15.2       Landlord
shall have access to and use of all areas in the Demised Premises (including
exterior Building walls, core corridor walls and doors and any core corridor
entrances), any roofs adjacent to the Demised Premises, and any space in or
adjacent to the Demised Premises used for shafts, stacks, pipes, conduits, fan
rooms, ducts, electric or other utilities, sinks or other Building facilities,
as well as access to and through the Demised Premises for the purpose of
operation, maintenance, decoration and repair, provided, however, that except
in emergencies such access shall not be exercised so as to interfere
unreasonable with Tenant’s use of the Demised Premises.  Tenant shall permit Landlord to install, use
and

 

9

 

maintain pipes,
ducts and conduits within the demising walls, bearing columns and ceilings of
the Demised Premises, provided that the installation work is performed at such
times and by such methods as will not materially interfere with Tenant’s use of
the Demised Premises, materially reduce the floor area thereof or materially
and adversely affect Tenant’s layout, and further provided that Landlord
performs all work with due diligence and care so as to not damage Tenant’s
property or the Demised Premises. 
Landlord and Tenant shall cooperate with each other in the location of
Landlord’s and Tenant’s facilities requiring such access.

 

15.3       Landlord
reserves the right at any time, without incurring any liability to Tenant
therefore, to make such changes in or to the Building and the fixtures and
equipment thereof, as well as in or to the street entrances, halls, foyers,
passages, elevators, if any, and stairways thereof, as it may deem necessary or
desirable; provided that there shall be no change that materially detracts from
the character or quality of the Building.

 

16.   DEFAULT.   Any other provisions in this Lease
notwithstanding, it shall be an event of default (“Event of Default”) under
this Lease if: (i) Tenant fails to pay any installment of Fixed Rent,
Additional Rent or other sum payable by Tenant hereunder when due and such
failure continues for a period of five (5) days after written notice of
such non-payment be Landlord to Tenant (which written notice shall not be
required more than two times in any period of twelve (12) consecutive months),
or (ii) Tenant fails to observe or perform any other covenant or agreement
of Tenant herein contained and such failure continues after written notice
given by or on behalf of Landlord to Tenant for more than thirty (30) days, or (iii) Tenant
uses or occupies the Demised Premises other than as permitted hereunder, or (iv) Tenant
assigns or sublets, or purports to assign or sublet, the Demised Premises or
any part thereof other than in the manner and upon the conditions set forth
herein, or (v) Tenant abandons or vacates the Demised Premises or, without
Landlord’s prior written consent, Tenant removes or attempts to remove or
manifests an intention to remove any or all of Tenant’s property from the
Demised Premises other than in the ordinary and usual course of business, or (vi) Tenant
(which, for purposes of this clause, includes any guarantor hereunder) files a
petition commencing a voluntary case, or has filed against it a petition
commencing an involuntary case, under the Federal Bankruptcy Code (Title 11 of
the Unites States Code), as now or hereafter in effect, or under any similar
law, or files or has filed against it a petition or answer in bankruptcy or for
reorganization or for an arrangement pursuant to any state bankruptcy law or
any similar state law, and, in the case of any such involuntary action, such
action shall not be dismissed, discharged or denied within sixty (60) days
after the filing thereof, or Tenant consents or acquiesces in the filing
thereof, or (vii) if Tenant is a banking organization, Tenant files an
application for protection, voluntary liquidation or dissolution applicable to
banking organization, or (viii) a custodian, receiver, trustee or
liquidator of Tenant or of all or substantially all of Tenant’s property or of
the Demised Premises shall be appointed in any proceedings brought by or
against Tenant and, in the latter case, such entity shall not be discharged
within sixty (60) days after such appointment or Tenant consents to or
acquiesces in such appointment, or (ix) Tenant shall generally not pay
Tenant’s debts as such debts become due, or shall make an assignment for the
benefit of creditors, or shall admit in writing its inability to pay its debts
generally as they become due, or (x) any of the foregoing occurs as to any
guarantor or surety of Tenant’s performance under this Lease, or such guarantor
or surety defaults on any provision under its guaranty or suretyship
agreement.  The notice and grace period
provisions in clauses (i) and (ii) above shall have no application to
the Events of Default referred to in clauses (iii) through (ix) above
or, to the extent applicable (x).

 

17.   LANDLORD’S REMEDIES.

 

17.1     In
the event of any Event of Default, Landlord at any time thereafter may at its
option exercise any one or more of the following remedies:

 

10

 

(a)                    Termination of Leases. 
Landlord may terminate this Lease, by written notice to Tenant, without
any right by Tenant to reinstate its rights by payment of rent due or other
performance of the terms and conditions hereof. 
Upon such termination Tenant shall immediately surrender possession of
the Demised Premises to Landlord, and Landlord shall immediately become
entitled to receive from Tenant an amount equal to the difference between the
aggregate of all Fixed Rent and Additional Rent reserved under this Lease for
the balance of the Lease Term, and the fair rental value of the Demised
Premises for that period, determined as of the date of such termination.

 

(b)                   Reletting.  With or
without terminating this Lease, as Landlord may elect, Landlord may re-enter
and repossess the Demised Premises, or any part thereof, and lease them to any
other person upon such terms as Landlord shall deem reasonable, for a term
within or beyond the term of this Lease; provided, that any such reletting
prior to termination shall be for the account of Tenant, and Tenant shall
remain liable for (i) all Annual Fixed Rent, Additional Rent and other
sums which would be payable under this Lease by Tenant in the absence of such
expiration, termination or repossession, less (ii) the net proceeds, if
any, of any reletting effected for the account of Tenant after deducting from
such proceeds all of Landlord’s expenses, attorneys’ fees and expenses,
employees’ expenses, reasonable alteration costs, expenses of preparation for
such reletting and all costs and expenses, direct or indirect, incurred as a
result of Tenant’s breach of the Lease. 
Landlord shall have no obligation to relet the Demised Premises if
Landlord, or any of its affiliates, shall have other comparable space available
for rent.  If the Demised Premises are at
the time of default sublet or leased by Tenant to others, Landlord may, as
Tenant’s agent, collect rents due from any subtenant or other tenant and apply
such rents to the rent and other amounts due hereunder without in any way
affecting Tenant’s obligation to Landlord hereunder.  Such agency, being given for security, is
hereby declared to be irrevocable.

 

(c)                    Acceleration of Rent. 
Landlord may declare Fixed Rent and all items of Additional Rent (the
amount thereof to be based on historical amounts and Landlord’s estimates for
future amounts) for the entire balance of the then current Lease Term
immediately due and payable, together with all other charges, payments, costs,
and expenses payable by Tenant as though such amounts were payable in advance
on the date the Event of Default occurred.

 

(d)                   Removal of Contents by Landlord. 
With respect to any portion of the Demised Premises which is vacant or
which is physically occupied by Tenant, Landlord may remove all persons and
property therefrom, and store such property in a public warehouse or elsewhere
at the cost of and for the account of Tenant, without service of notice or
resort to legal process (all of which Tenant expressly waives) and without
being deemed guilty of trespass or becoming liable for any loss or damage which
may be occasioned thereby.  Landlord
shall have a lien for the payment of all sums agreed to be paid by Tenant
herein upon all Tenant’s property, which lien is to be in addition to Landlord’s
lien now or hereafter provided by law.

 

(e)                    Right of Distress and Lien. 
In addition to all other rights and remedies of Landlord, if an Event of
Default shall occur, Landlord shall, to the extent permitted by law, have a
right of distress for rent and lien on all of Tenant’s fixtures, merchandise
and equipment in the Demised Premises, as security for rent and all other
charges payable hereunder.

 

(f)                      Tenant hereby empowers any Prothonotary
or attorney of any Court of Record to appear for Tenant in any and all actions
which may be brought for rent and/or the charges, payments, costs, and expenses
herein reserved as rent, or herein agreed to be paid by Tenant and/or to sign
for Tenant an agreement for entering in any competent Court and action to
confess judgment, or actions for the recovery of such rent or other charges or
expenses in said suits or in said action or actions to confess 

 

11

 

judgment against Tenant
for all or part of the rent specified in this Lease and then due and unpaid,
and other charges, payments, costs, and expenses reserved as rent or agreed to
be paid by Tenant and then due and unpaid; and for interest and costs and
reasonable attorney’s fees.  Such
authority shall not be exhausted by one exercise thereof, but judgment may be
confessed as aforesaid from time to time as often as any said rent and/or other
charges reserved as rent or agreed to be paid by Tenant shall fall due or be in
arrears.

 

(g)                   Upon the expiration of the then current term of this
lease or the earlier termination or surrender hereof as provided in this lease,
it shall be lawful for any attorney to appear as attorney for Tenant as well as
for all persons claiming by, through or under Tenant and to sign an agreement
for entering in any competent Court an action to confess judgment in ejectment
against Tenant and all persons claiming by, through or under Tenant and therein
confess judgment for the recovery by Landlord of possession of the premises,
for which this lease (or a copy thereof) shall be its sufficient warrant,
whereupon, if Landlord so desires, a writ of possession or the appropriate writ
under the Rules of Civil Procedure then in effect may issue forthwith,
without any prior writ or proceedings; provided, however, if for any reason
after such action shall have commenced, the same shall be determined and
possession of the premises remain in or be restored to Tenant, Landlord shall
have the right for the same default and upon any subsequent default or
defaults, or upon expiration of the term of this lease to bring one more
further action to confess judgment or actions as hereinbefore set forth to
recover possession of the premises and confess judgment for the recovery of
possession of the premises as hereinbefore provided.

 

(h)                   In any action to confess judgment in ejectment and/or
for rent in arrears, Landlord shall first cause to be filed in such action an
affidavit made by him or someone acting for him, setting forth the facts
necessary to authorize the entry of judgment, and, if a true copy of this lease
(and of the truth of the copy such affidavit shall be sufficient evidence) be
filed in such action, it shall not be necessary to file in such action, it
shall not be necessary to file the original as a warrant of attorney, and rule of
Court, custom or practice to the contrary notwithstanding Tenant hereby
releases to Landlord and to any and all attorneys who may appear for Tenant all
errors in said proceedings and all liability therefore.  If proceedings shall be commenced by Landlord
to recover possession under the Acts of Assembly and Rules of Civil
Procedure, either at the end of the term or earlier termination of this lease,
or for non-payment of rent or any other reason, Tenant specifically waives the
right to the three months’ notice and to the fifteen or thirty days’ notice
required by the Landlord and Tenant Act of 1951, and agrees that five days’
notice shall be sufficient in either or any such case.

 

17.2                 Injunction.  In the event
of breach or threatened breach by Tenant of any provision of this Lease,
Landlord shall have the right of injunction and the right to invoke any remedy
allowed at law or in equity in addition to other remedies provided for herein.

 

17.3                 Waiver of Redemption.  Tenant hereby
expressly waives any and all rights of redemption granted by or under any
present or future law in the event this Lease is terminated, or in the event of
Landlord obtaining possession of the Demised Premises, or Tenant is evicted or
dispossessed for any cause, by reason of violation by Tenant of any of the
provisions of this Lease.

 

17.4                 Not Exclusive Right.  No right or
remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy herein or by law provided, but each
shall be cumulative and in addition to every other right or remedy given herein
or now or hereafter existing at law or in equity by statute.

 

12

 

17.5                 Expenses.  In the event
that Landlord commences suit for the repossession of the Demised Premises, for
the recovery of rent or any other amount due under the provisions of this
Lease, or because of the breach of any other covenant herein contained on the
part of Tenant to be kept or performed, and a breach shall be established,
Tenant shall pay to Landlord all expenses incurred in connection therewith,
including reasonable attorneys’ fees.

 

18.         LANDLORD’S RIGHT TO CURE TENANT’S DEFAULT.  
If Tenant defaults in the making of any payment or in the doing of any
act herein required to be made or done by Tenant, then Landlord may, but shall
not be required to, make such payment or do such act, and charge the amount of
Landlord’s expense to Tenant, with interest accruing and payable thereon at the
Default Rate as of the date of the expenditure by Landlord or as of the date of
payment thereof by Tenant, whichever is higher, from the date paid or incurred
by Landlord to the date of payment hereof by Tenant; provided, however, that
nothing herein contained shall be construed or implemented in such a manner as
to allow Landlord to charge or receive interest in excess of the maximum legal
rate then allowed by law.  Such payment
and interest shall constitute Additional Rent hereunder due and payable with
the next monthly installment of Fixed Rent; but the making of such payment or
the taking of such action by Landlord shall not operate to cure such default by
Tenant or to estop Landlord from the pursuit of any remedy to which Landlord
would otherwise be entitled.

 

19.         ESTOPPEL CERTIFICATE.   Tenant shall
from time to time, at the request of Landlord, upon ten (10) business days
notice, execute and deliver to Landlord a Tenant Estoppel Certificate in the
form attached hereto as Exhibit “E”, it being intended that any such
statement delivered pursuant hereto may be relied upon by others with whom
Landlord may be dealing.  Failure to
execute said Estoppel Certificate shall constitute a default under this lease.

 

20.         HOLDING OVER.    If Tenant retains possession of the Demised
Premises or any part thereof after the termination of this Lease or expiration
of the Lease Term or otherwise in the absence of any written agreement between
Landlord and Tenant concerning any such continuance of the term, Tenant shall
pay Landlord (i) as liquidated damages for such holding over alone, an
amount, calculated on a per diem basis for each day of such unlawful retention,
equal to the greater of (a) twice the Annual Fixed Rent, or (b) the
established market rental for the Demised Premises, for the time Tenant thus
remains in possession, plus, in each case, all Additional Rent and other sums
payable hereunder, and (ii) all other damages, costs and expenses
sustained by Landlord by reason of Tenant’s holding over.  Without limiting any rights and remedies of
Landlord resulting by reason of the wrongful holding over by Tenant, or
creating any right in Tenant to continue in possession of the Demised Premises,
all Tenant’s obligations with respect to the use, occupancy and maintenance of
the Demised Premises shall continue during such period of unlawful retention.

 

21.         [Intentionally Omitted]

 

22.         SURRENDER OF DEMISED PREMISES.  Tenant shall,
at the end of the Lease Term, or any extension thereof, promptly surrender the
Demised Premises in good order and condition and in conformity with the
applicable provisions of this Lease, excepting only reasonable wear and tear.

 

23.         SUBORDINATION AND ATTORNMENT.  This Lease
and the estate, interest and rights hereby created are subordinate to any
mortgage now or hereafter placed upon the Building or the Land or any estate or
interest therein, including, without limitation, any mortgage on any leasehold
estate, and to all renewals, modifications, consolidations, replacements and
extensions of the same as well as any substitutions therefore, as provided for
on the attached Exhibit “F”.  Tenant
agrees that in the event any person, firm, corporation or other entity acquires
the right to possession of the Building or the Land, 

 

13

 

including any mortgagee
or holder of any estate or interest having priority over this Lease, Tenant
shall, if requested by such person, firm, corporation or other entity, attorn
to and become the tenant of such person, firm, corporation or other entity,
upon the same terms and conditions as are set forth herein for the balance of
the Lease Term.  Notwithstanding the
foregoing, any mortgagee may, at any time, subordinate its mortgage to this
Lease, without Tenant’s consent, by notice in writing to Tenant, and thereupon
this Lease shall be deemed prior to such mortgage without regard to their
respective dates of execution and delivery, and in that event, such mortgagee
shall have the same rights with respect to this Lease as though it had been
executed prior to the execution and delivery of the mortgage.  Tenant, if requested by Landlord, shall
execute any such instruments in recordable form as may be reasonably required
by Landlord in order to confirm or effect the subordination or priority of this
Lease, as the case may be, and the attornment of Tenant to future landlords in
accordance with the terms of this Article. 
Landlord shall furnish to Tenant a non-disturbance agreement from the
holder of such mortgage providing that so long as Tenant is not in default of this
Lease Tenant’s occupancy shall not be disturbed and the obligations of Landlord
will continue to be performed.

 

24.         BROKERS.  Each party represents and warrants to the
other that it, he, she or they have not made any agreement or taken any action
which may cause anyone to become entitled to a commission as a result of the
transactions contemplated by this Lease, and each will indemnify and defend the
other from any all claims, actual or 
threatened, for compensation by any such third person by reason of such
party’s breach of its, his, her or their representation or warranty contained
in the Article 23.

 

25.         NOTICES.  All notices or other communications hereunder
shall be in writing and shall be deemed to have been given (i) if hand
delivered or sent by an express mail or delivery service or by courier, then if
and when delivered to the respective parties at the below addresses (or at such
other address as a party may hereafter designate for itself by notice to the
other party as required hereby), or (ii) if mailed, then on the next
business day following the date on which such communication is deposited in the
United States mails, by first class registered or certified mail, return
receipt requested, postage prepaid, and addressed to the respective parties at
the below addresses (or at such other address as a party may hereafter
designate for itself by notice to the other party as required hereby).

 

25.1                 If to Landlord:

Beaver Dam Limited
Liability Company

10706 Beaver Dam Road

Cockeysville, MD  21030

Attention:  Building Manager

 

25.2                 If to Tenant:

Sinclair Broadcast Group, Inc.

10706 Beaver Dam Road

Cockeysville, MD  21030

Attention:  General Counsel

 

26.         MISCELLANEOUS.

 

26.1                 Successors and Assigns.  The
obligations of this Lease shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns; provided that
Landlord and each successive owner of the Building and/or the Land shall be
liable only for obligations accruing during the period of its ownership or interest
in the Building, and from and after the transfer by Landlord or such successive
owner of its ownership or other interest in the Building, Tenant shall look
solely to the successors in title for the performance of Landlord’s obligations
hereunder arising thereafter.

 

14

 

26.2                 Waivers.  No delay or
forbearance by Landlord in exercising any right or remedy hereunder or in
undertaking or performing any act matter which is not expressly required to be
undertaken by Landlord shall be construed, respectively, to be a waiver of
Landlord’s rights or to represent any agreement by Landlord to undertake or
perform such act or matter thereafter.

 

26.3                 Waiver of Trial by Jury.  Tenant hereby
consents to the exclusive jurisdiction of the courts of the state where the
Demised Premises are located and in any and all actions or proceedings arising
hereunder or pursuant hereto, and irrevocably agrees to service of process in
accordance with Article 25 above. 
Landlord and Tenant agree to waive trial by jury in any action,
proceeding or counterclaim brought by either of the parties hereto against the
other on any matter whatsoever arising out of or in any way connected with this
Lease, the relationship of Landlord and Tenant, Tenant’s use of or occupancy of
the Demised Premises and/or any claim of injury or damage and any emergency or
any other statutory remedy.

 

26.4                 Limitation of Landlord’s Liabilities. 
Tenant shall look solely to the Demised Premises and rents derived therefrom
and Landlord’s insurance proceeds for enforcement of any obligation hereunder
or by law assumed or enforceable against Landlord, and no other property or
other assets of Landlord shall be subjected to levy, execution or other
enforcement procedure for the satisfaction of Tenant’s remedies or with respect
to this Lease, the relationship of Landlord and tenant hereunder or Tenant’s
use and occupancy of the Demised Premises.

 

26.5                 Time of the Essence.  All times,
wherever specified herein for the performance by Landlord or Tenant of their
respective obligations hereunder, are of the essence of this Lease.

 

26.6                 Severability.  Each covenant
and agreement in this Lease shall for all purposes be construed to be a
separate and independent covenant or agreement. 
If any provision in this Lease or the application thereof shall to any
extent be invalid, illegal or otherwise unenforceable, the remainder of this
Lease, and the application of such provision other than as invalid, illegal or
unenforceable, shall not be affected thereby; and such provisions in this Lease
shall be valid and enforceable to the fullest extent permitted by law.

 

26.7                 Amendment and Modification. 
This Lease, including all Exhibits hereto, each of which is incorporated
in this Lease, contains the entire agreement between the parties hereto, and
shall not be amended, modified or supplemented unless by agreement in writing
signed by both Landlord and Tenant.

 

26.8                 Headings and Terms.  The title and
headings and table of contents of this Lease are for convenience of reference
only and shall not in any way be utilized to construe or interpret the
agreement of the parties as otherwise set forth herein.  The term “Landlord” and term “Tenant” as used
herein shall mean, where appropriate, all persons acting by or on behalf of the
respective parties, except as to any required approval, consents or amendments,
modifications or supplements hereunder when such terms shall only mean the
parties originally named on the first page of this Lease as Landlord and
Tenant, respectively, and their agents so authorized in writing.

 

26.9                 Governing Law.  This Lease
shall be governed by and construed in accordance with the laws of the State of
Maryland.

 

15

 

IN WITNESS WHEREOF, the
parties hereto have caused this Lease to be executed on the day and year first
above written.

 

	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
  BEAVER
  DAM LLC

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  By:

  	
  J. Duncan Smith, Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
   

  	
  By:

  	
  /s/ J. Duncan Smith

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
  SINCLAIR BROADCAST
  GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  By:

  	
  David B. Amy,
  EVP & CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David B. Amy

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President & CFO

  
	
   

  	
   

  	
   

  	
  Title:

  

 

16

 

EXHIBIT “A”

 

DEMISED
PREMISES

 

17

 

EXHIBIT “B”

 

RENT
SCHEDULE

 

	
  Year

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.   2008

  	
   

  	
  $

  	
  124,158.08

  	
   

  	
  $

  	
  1,489,897

  	
   

  
	
  2.   2009

  	
   

  	
  $

  	
  127,882.83

  	
   

  	
  $

  	
  1,534,594

  	
   

  
	
  3.   2010

  	
   

  	
  $

  	
  131,719.31

  	
   

  	
  $

  	
  1,580,632

  	
   

  
	
  4.   2011

  	
   

  	
  $

  	
  135,670.89

  	
   

  	
  $

  	
  1,628,051

  	
   

  
	
  5.   2012

  	
   

  	
  $

  	
  139,741.02

  	
   

  	
  $

  	
  1,676,892

  	
   

  
	
  6.   2013

  	
   

  	
  $

  	
  143,933.25

  	
   

  	
  $

  	
  1,727,199

  	
   

  
	
  7.   2014

  	
   

  	
  $

  	
  148,251.24

  	
   

  	
  $

  	
  1,779,015

  	
   

  
	
  8.   2015

  	
   

  	
  $

  	
  152,698.78

  	
   

  	
  $

  	
  1,832,385

  	
   

  
	
  9.   2016

  	
   

  	
  $

  	
  157,279.75

  	
   

  	
  $

  	
  1,887,357

  	
   

  
	
  10.  2017

  	
   

  	
  $

  	
  161,998.14

  	
   

  	
  $

  	
  1,943,978

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If Tenant exercises option to extend

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.  2018

  	
   

  	
  $

  	
  166,858.08

  	
   

  	
  $

  	
  2,002,297

  	
   

  
	
  12.  2019

  	
   

  	
  $

  	
  171,863.82

  	
   

  	
  $

  	
  2,062,366

  	
   

  
	
  13.  2020

  	
   

  	
  $

  	
  177,019.74

  	
   

  	
  $

  	
  2,124,237

  	
   

  
	
  14.  2021

  	
   

  	
  $

  	
  182,330.33

  	
   

  	
  $

  	
  2,187,964

  	
   

  
	
  15.  2022

  	
   

  	
  $

  	
  187,800.24

  	
   

  	
  $

  	
  2,253,603

  	
   

  

 

18

 

EXHIBIT “C”

 

PROVISIONS
REGARDING ADDITIONAL RENT AND

ADJUSTMENTS
TO FIX RENT

 

1.               Definitions.

 

A.                                   “Essential Capital Improvements”
shall mean (a) a labor saving device, energy saving device or other
installation, improvement or replacement which is intended to reduce Operating
Expenses, whether or not voluntary or required by governmental mandate, or (b) an
installation or improvement required by reason of any law, ordinance or
regulation which did not exist on the date of the execution of this Lease, or (c) an
installation or improvement intended to improve the safety of tenants in the
Building generally, whether or not voluntary or required by governmental
mandate.

 

B.                                     “Operating Expense Allowance”
shall mean and equal -Tenant’s Proportionate Share of the amount of Operating
Expenses for the calendar year 2007.                         .

 

C.                                     “Operating Expenses” shall mean
all of Landlord’s operating costs and expenses of whatever kind or nature paid
or incurred in the operation and maintenance of the Building and the Land, all
computed on the accrual basis and in accordance with the terms of this Lease,
including, but not limited to, the following:

 

l.                  Gas, electricity, steam, fuel, water, sewer and other
utility charges (including surcharge’s) of whatever nature (excluding use of
utilities by other tenants such as may be submetered or separately metered
pursuant to their leases);

 

2.               Insurance premiums and the amounts of any deductibles
paid by Landlord;

 

3.               Building personnel costs, including, but not limited
to, salaries, wages, fringe benefits, taxes, insurance and other direct and
indirect costs;

 

4.               Costs of service and maintenance contracts including,
but not limited to, cleaning and security services;

 

5.               All other maintenance and repair expenses (excluding
repairs and general maintenance paid by proceeds of insurance or by Tenant or
other third parties, and alterations solely attributable to tenants of the
Building other than Tenant) and the cost of materials and supplies;

 

6.               Any other costs and expenses (i.e. items which are not
capital improvements) incurred by Landlord in operating the Building, including
ground rent, if any;

 

7.               The cost of any additional services not provided to
the Building on the Commencement Date but thereafter provided by Landlord in
the prudent management of the Building;

 

8.               The annual amortization of any Essential of Capital
Improvement which is made by Landlord after completion of initial construction
of the Building, based on the useful life of the improvement plus interest at
the Prime Rate on the date of the expenditure on the underappreciated portion
thereof;

 

19

 

9.               Landlord’s central office accounting costs and
overhead applicable to the Building;

 

10.         Accounting fees for preparing the Operating Expense
statement;

 

11.         Management fees payable to the managing agent; and

 

12.         Taxes, allocated on a per diem basis if the tax year
is different than the Operating Year.

 

Operating Expenses shall
not include:

 

1.               Special cleaning or other services, not offered to all
tenants of the Building;

 

2.               Any charge for depreciation, interest or rents
(except, if applicable) (ground rents) paid or incurred by Landlord; or

 

3.               Leasing commissions.

 

If Landlord is not
furnishing any particular work or service (the cost of which, if performed by
Landlord, would constitute and Operating Expense) to a tenant who has
undertaken to perform such work or service in lieu of performance by Landlord,
Operating Expenses shall nevertheless be deemed to include the amount Landlord
would reasonably have incurred if Landlord has in fact performed the work or
service at its expense.

 

Not withstanding the
foregoing, Operating Expenses shall not include interest and amortization,
depreciation, ground rents, expenses for work performed for other tenants in
Building, expenses for repairs or other work occasioned by fire or other
insurable casualty (to the extent covered by insurance), expenses for leasing
or processing new tenants, leasing commissions, advertising expenses), legal
expenses incurred in enforcing the terms of any tenant leases, salaries for any
employees of Landlord above those attributable the management, operation and
maintenance of the Building, incurred by Landlord in connection with the
operation and maintenance of the Building.

 

D.            “Operating Year” shall mean each
calendar year or such other period of twelve (12) months as hereafter may be
adopted by Landlord as its fiscal year, occurring during the Lease Term.

 

E.              “Taxes” shall mean all taxes,
assessments and governmental charges, whether Federal, state, county or
municipal, and whether general or special, ordinary or extraordinary, foreseen
or unforeseen, imposed upon the Building or the Land or their operation,
whether or not directly paid by Landlord. 
Taxes shall not include income taxes, excess profit taxes, franchise
taxes, or other taxes imposed or measured on or by the income of Landlord from
the operation of the Building or the Land; provided, however,
that if, due to a future change in the method of taxation or assessment, any
income, profit, franchise or other tax, however designated, shall be imposed in
substitution, in whole or in part, for (or in lieu of) any tax, assessment or
charge which would otherwise be included within the definition of Taxes, such
other tax shall be deemed to be included with Taxes as defined herein to the
extent of such substitution.  There shall
be added to Taxes the expenses of any contests (administrative or otherwise) of
Taxes incurred during the Operating Year. 
Tenant shall pay to the appropriate governmental authority any use and
occupancy tax.  In the event that
Landlord is required by law to collect such tax, Tenant shall

 

20

 

pay such use and
occupancy tax to Landlord as Additional Rent upon demand and Landlord shall
remit any amounts so paid to Landlord to the appropriate governmental
authority.

 

F.              “Tenant’s Proportionate Share” shall mean a
fraction; the numerator of which shall be the rentable square feet of Demised
Premises, and the denominator of which is 74,200 rentable square feet which is
the aggregate rentable square feet in the Building.

 

2.                                       Additional Rent for Operating Expenses.

 

2.1         The rent paid by Tenant as set forth on Exhibit B
shall include the Operating Expense Allowance. 
No Additional Rent shall be due from Tenant during calendar year 2008
even if Tenants’ Proportionate Share of Operating Expenses for 2008 exceeds the
Operating Expense Allowance; provided, commencing on January 1, 2009,
Tenant shall pay during the remaining Lease Term as Additional Rent, the amount
by which Tenants’ Proportionate Share of Operating Expenses exceeds the
Operating Expense Allowance.

 

2.2         As soon as available in each Operating Year during the
Lease Term, Landlord shall provide Tenant with a written statement setting
forth the Operating Expense Allowance and a projection of Tenant’s
Proportionate Share of Operating Expenses for such year commencing on the first
day of the first month following receipt of such statement and continuing until
receipt by Tenant of Landlord’s statement of the next projected Tenant’s
Proportionate Share of Operating Expenses, Tenant shall pay to Landlord with
each monthly installment of Fixed Rent an amount equal to one-twelfth (1/12th)
of the excess of such projected Tenant’s Proportionate Share of Operating
Expenses over the Operating Expense Allowance. 
Concurrently with the first payment required hereinabove, Tenant shall
pay to Landlord an amount equal to the excess of such projected Tenant’s
Proportionate Share of Operating Expenses over the Operating Expense Allowance
multiplied by a fraction, the numerator of which is the number of calendar
months of the Operating Year in question which have elapsed prior to the due
date of such first payment and the denominator of which is twelve (12), less
any payments made by Tenant during said period on account of such excess
Operating Expenses.

 

2.3         Landlord shall, as soon as possible after the close of
each such Operating Year, provide Tenant with a statement of the actual
operating expenses for such period.  Any
underpayment by Tenant during such Operating Year due to the fact that
projected Operating Expenses were less than actual Operating Expenses shall be
paid to Landlord within 30 days after Tenant’s receipt of a statement for such
deficiency.  Any overpayment by Tenant
due to the fact that projected Operating Expenses were greater than actual
Operating Expenses for such year shall be credited to the next Additional Rent
payable by Tenant under this Exhibit C. 
If the Operating Expenses are less than the Operating Expense Allowance,
a credit or check will not be issued.

 

3.                     Adjustment for Vacancies. 
In determining Operating Expenses for any Operating Year, if the
Building was less than fully occupied during such entire year, or was not in
operation during such entire year, then Operating Expenses shall be adjusted by
Landlord to reflect the amount that such expenses would normally be expected to
have been, in the reasonable opinion of Landlord, had the Building been fully
occupied and operational throughout such year, except that in no event shall
such adjustment result in an amount less than the actual Operating
Expenses.  Any such annualization shall
be explained in Landlord’s statement under Section 2.3 hereof.

 

21

 

4.                     Pro-Rations. 
Should this Lease commence or terminate at any time other than the first
day of an Operating Year, the Additional Rent payable by Tenant on account of
Operating Expenses shall be first calculated on the basis of the entire
Operating Year and then pro-rated on the basis of the number of days of
occupancy.

 

5.                     Audit.  Tenant shall
have the right at all reasonable times within thirty (30) days after Landlord
has provided Tenant with a statement of the actual Operating Expenses, and at
its sole expense, to audit Landlord’s books and records relating to this Lease
for that Operating Year.

 

6.                     Minimums. 
Notwithstanding anything contained herein to the contrary, in no event
shall Tenant’s Proportionate Share of Operating Expenses for any calendar year
be less than the Operating Expense Allowance.

 

7.                     Personal Property Taxes. 
Tenant will be responsible for ad valorem taxes on its personal property
and on the value of the leasehold improvements in the Demised Premises to the
extent that the same exceed Building Standard allowances (and if the taxing
authorities do not separately assess Tenant’s leasehold improvements, Landlord
may make a reasonable allocation of impositions to such improvements).

 

8.                     Survival.  If, upon
expiration or termination of this Lease for any cause, the amount of any
Additional Rent due hereunder has not yet been determined, an appropriate
payment from Tenant to Landlord or refund from Landlord to Tenant, shall be
made promptly after such determination.

 

22

 

EXHIBIT “D”

RULES AND REGULATIONS

 

 1.                  The sidewalks, lobbies, passages, elevators and stairways shall not be
obstructed or used by Tenant for any purpose other than ingress and egress from
and to Tenant’s offices.  Landlord shall
in all cases retain the right to control or prevent access thereto of all
persons whose presence, in the judgment of Landlord, shall be prejudicial to
the safety, peace, character or reputation of the building or of any of the
tenants.

 

 2.                  The toilet rooms, water closets, sinks, faucets, plumbing or other
service apparatus of any kind shall not be used by Tenant for any purposes
other than those for which they were designed and installed.  No sweeping, rubbish, rags, ashes, chemicals
or other refuse or injurious substances (which shall include medical waste)
shall be placed therein or used in connection therewith by Tenant or left by Tenant
in the lobbies, passages, elevators or stairways.

 

 3.                  Nothing shall be placed by Tenant on the outside of the building or on
its window sills or projections. 
Skylights, windows, doors and transoms shall not be covered or
obstructed by Tenant, and no window shades, blinds, curtains, screens, storm
windows, awnings or other materials shall be installed or placed on any of the
windows or in any of the window spaces, except as approved in writing by
Landlord.

 

 4.                  No sign, lettering, insignia, advertisement, or notices shall be
inscribed, painted, installed or placed on any window or in any window spaces
or any other part of the outside or inside of the building, unless first
approved in writing by Landlord.  Names shall
be placed on suite entrance doors for Tenant by Landlord and not otherwise, and
at Tenant’s expense.  In all instances
the lettering is to be of design and form approved by Landlord.

 

 5.                  Tenant shall not place additional locks upon any doors and shall
surrender all keys for all locks at the end of the tenancy.

 

 6.                  Tenant shall not do or commit, or suffer, or permit to be done or
committed, any act or thing whereby, or in consequence whereof, the rights of
other tenants will be obstructed or interfered with, or other tenants will in
any other way be injured or annoyed. 
Tenant shall not use nor keep, nor permit to be used or kept in the
building any matter having an offensive odor, nor any kerosene, gasoline,
benzine, fuel, or other explosive or highly flammable material.  No birds, fish or animals shall be brought
into or kept in or about the premises.

 

 7.                  In order that the premises may be kept in good state of preservation
and cleanliness, Tenant shall, during the continuance of its possession, permit
personnel and contractors approved by Landlord, and no one else, to clean the
premises.  Landlord shall be in no way
responsible to Tenant for the removal, disposal or cleaning of any medical
equipment or waste or for any damage done to furniture or other effects of
Tenant or others by any of Tenant’s employees, or any persons, or for any loss
of Tenant’s employees, or for any loss of property of any kind in or from the
premises, however occurring.  Tenant
shall see each day that the windows are closed, the lights turned out, and
doors securely locked before leaving the premises.

 

 8.                  If Tenant desires to introduce signaling, telegraphic, telephonic,
protective alarm or other wires, apparatus or devices, Landlord shall direct
when and how the same are to be placed, and except as 

 

23

 

so directed, no
installation, boring or cutting shall be permitted.  Landlord shall have the right to prevent and
to cut off the transmission of excessive or dangerous current of electricity or
annoyances into or through the building or premises and to require the changing
of wiring connections or layout at Tenant’s expense, to the extent that
Landlord may deem necessary, and further to require compliance with such
reasonable rules as Landlord may establish relating thereto, and in the
event of non-compliance with the requirements or rules, Landlord shall have the
right immediately to cut wiring or to do what it considers necessary to remove
the danger, annoyance or electrical interference with apparatus in any part of
the building.  All wires installed by
Tenant must be clearly tagged at the distributing boards and junction boxes,
and elsewhere as required by Landlord, with the number of the office to which
said wires lead, and for the purpose for which the wires respectively are used,
together with the name of the concern, if any, operating same.

 

 9.                  No furniture, packages, equipment, supplies or merchandise of Tenant
will be received in the building, or carried up or down in the elevators or
stairways, except during such hours as shall be designated by Landlord, and
Landlord in all cases shall also have the exclusive right to prescribe the
method and manner in which the same shall be brought in or taken out of the
building.  Tenant shall in all cases have
the right to exclude heavy furniture, safes, and other articles from the
building which may be hazardous or to require them to be located at designated
places in the premises.  The cost of
repairing any damage to the building caused by taking in or out furniture, safes
or any articles or any damage caused while the same be in the premises, shall
be paid by Tenant.

 

10.               Without Landlord’s written consent, nothing shall be
fastened to, nor shall holes be drilled or nails or screws driven into walls of
partitions; nor shall walls or partitions be painted, papered, or otherwise
covered or moved in any way, or marked or broken; nor shall any connection be
made to electric wires for running fans or motors or other apparatus, devices
or equipment; nor shall machinery of any kind other than customary small
business machines be allowed on the premises; nor shall Tenant use any other
method of heating, air conditioning or air cooling than that provided by
Landlord.  Telephones, switchboards and
telephone wiring and equipment shall be placed only where designated by
Landlord.  No mechanics, other than those
employed by Landlord, shall be allowed to work in or about the building without
the written consent of Landlord first have been obtained.

 

11.               Access may be had by Tenant to the premises at any
time, Access may be refused at Landlord’s election, unless the person seeking
it is known to the watchman in charge, or has a pass issued by Landlord, or is
properly identified to the watchman’s satisfaction.  Landlord shall in no case be responsible for
the admission or exclusion of any person. 
In case of invasion, hostile attack, insurrection, mob violence, riot,
bomb threats, explosion fire or any casualty, Landlord reserves the right to
bar or limit access to the building for the safety of occupants or protection
of property.

 

12.               Landlord reserves the right to rescind, suspend or
modify any rules or regulations, and to make such other rules or
regulations as, in Landlord’s judgment, may from time to time be needed for the
safety, care, maintenance, operation and cleanliness of the building, or for
the preservation of good order therein. 
Tenant agrees to comply with new or modified regulations of any Federal,
State or Municipal authority having appropriate jurisdiction or any regulatory agencies
as they may affect the premises or building. 
Notice of any action by Landlord referred to in this paragraph, when
given to Tenant, shall have the same force and effect as if originally made a
part of the foregoing lease.  But new rules and
regulations will not, however, be unreasonably inconsistent with the proper and
rightful enjoyment of the premises by Tenant under this lease.

 

13.               The use of rooms as sleeping quarters is prohibited at
all times.

 

24

 

EXHIBIT “E”

TENANT’S
ESTOPPEL CERTIFICATE AND AGREEMENT

 

LANDLORD:

 

TENANT:

 

DATE OF LEASE:

 

PREMISES:

 

The undersigned (“Tenant”)
hereby certifies to and agrees with
                                                            ,
its successors and assigns (“                             ”)
that:

 

1.                                 Tenant has accepted possession of the
Premises pursuant to the Lease.  The
Lease term commenced on
                          .
The termination date of the Lease term, excluding renewals and extensions is
                            .

 

2.                                 Any improvements required by the terms of
the Lease to be made by Landlord have been completed to the satisfaction of
Tenant in all respects, except for the “punchlist” items, if any, set forth on
Schedule 1 attached hereto.  Landlord has
(as of the date hereof) fulfilled all of its duties under the Lease (except as
otherwise set forth on Schedule 1).  No
sums are due by Landlord to Tenant under the Lease or any other agreement
between Landlord and Tenant.

 

3.                                 The Lease has not been assigned,
modified, supplemented or amended in any way. 
The Lease constitutes the entire agreement between the parties and there
are no other agreements between Landlord and Tenant concerning the Premises.

 

4.                                 The Lease is valid and in full force and
effect, and to the best of Tenant’s knowledge, neither Landlord nor Tenant is
in default thereunder.  Tenant has no
defense, setoff or counterclaim against Landlord arising out of the Lease or in
any way relating thereto, or arising out of any other transaction between
Tenant and Landlord, and no event has occurred and no condition exists, which
with the giving of notice or the passage of time, or both, will constitute a
default under the Lease.

 

5.                                 The monthly rent presently payable under
the Lease is $                               
per month payable in advance.  All rent
and other sums due under the Lease are current and have been paid through
                ,
20       . 
No rent or other sum payable under the Lease has been paid more than one
month in advance.

 

6.                                 All notices and other communications from
Tenant to
                              
shall be in writing and shall be delivered by hand or mailed by registered
mail, postage paid, return receipt requested, addressed to
                              
at: or at such other address as
                              ,
a successor, purchaser, or transferee shall furnish to Tenant in writing.

 

7.                                 This certificate may not be modified,
except by an agreement in writing signed by the parties hereto (or their
respective successors and assigns) and
                              .  This Estoppel 

 

25

 

Certificate shall
be binding on the undersigned, it successors and assigns (including future
tenants under the Lease) and shall insure to the benefit of
                              ,
it successors and assigns.

 

 

	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Attest/Witness:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  BY:

  
	
   

  	
   

  	
   

  
	
  DATE:                     ,
  20      

  	
   

  	
   

  
				

 

26

 

EXHIBIT “F”

SUBORDINATION,
ATTORNMENT AND NON-DISTURBANCE AGREEMENT

 

THIS AGREEMENT,
made as of the              
day of                       ,
20    , by and between
                                                                              ,
a                               
corporation, having an office at
                                                                                                
(the “Lender”), and
                                          ,
a
                              
corporation having an office at (the “Tenant”).

 

WITNESSETH:

 

WHEREAS, the
Lender has made a loan (together with any present or future amendments or
increases thereto, the “Loan”) to
                                                                  
(“Landlord”) evidenced by a Promissory Note of Landlord (together with any
present or future amendments or increases thereto, the “Note”) secured by a
mortgage from the Landlord, as amended, increased, renewed, modified,
consolidated, replaced, or extended being hereinafter referred to as the “Mortgage”,
covering all of the Landlord’s right, title and interest in the land,
buildings, improvements and other items of property described therein, located
in Baltimore County, Maryland and more particularly described in Exhibit “A”
annexed hereto and made a part hereof (said land, buildings, improvements, and
such other property being hereinafter collectively referred to as the “Mortgaged
Premises”) and further secured by an Assignment of Rents and Other Interest
(together with any present or future amendments or increases thereto, the “Assignment
Rents”), both recorded in the Office of the Recorder of Deeds of Baltimore
County, Maryland:

 

WHEREAS, the
Landlord and the Tenant entered into a lease dated as of January     ,
2008, (said lease, as the same may be amended, renewed, modified, consolidated,
replaced or extended being hereinafter referred to as the “Lease”), covering a
portion of the Mortgaged Premises (the “Leased Premises”).

 

WHEREAS, the
Assignment of Rents assigned to Lender all of Landlord’s right, title, interest
in and to the Lease and any other present or future lease of all or any part of
the Mortgaged Premises;

 

WHEREAS, the
Lender, as a condition to making the loan secured by Mortgage, has required
that the Lease be and continue to be subordinate in every respect to the
Mortgage; and

 

WHEREAS, the
parties hereto desire to effect the subordination of the lease to the Mortgage
and to provide for the non-disturbance of the Tenant by the Lender;

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants and agreements contained
herein and for other good and valuable consideration, the receipt and
sufficiency whereof are hereby acknowledged, Tenant and Lender, intending to be
legally bound hereby, covenant and agree as follows:

 

 1.                              The Lease (and all provisions thereof, including any
purchase option) shall at all times be subject and subordinate to the
provisions of this Agreement in each and every respect to the Mortgage (and all
provisions thereof) subject, nevertheless, to the provisions of this
Agreement.  The foregoing provision shall
be self-operative; however, the Tenant, upon request, shall execute and deliver
any certificate which the Landlord or the Lender may reasonably request to
confirm said subordination by the Tenant.

 

27

 

 2.                              The Tenant certifies that (a) the Lease is
presently in full force and effect and unmodified, except as noted in this
Agreement, and constitutes the sole agreement between Landlord and Tenant
relating to Tenant’s occupancy of the Leased Premises, (b) to the best of
its knowledge, no event has occurred which constitutes a default under the
Lease by the Landlord or which, with the giving of notice, the passage of time
or both, would constitute a default by the Landlord under the Lease; (c) to
the best of its knowledge, as of the date hereof Tenant has no charge, lien or
claim of offset under the Lease and Landlord does not owe any sums to Tenant
under the Lease or any other agreement. 
The full minimum monthly rental of $                    
is payable                                ,
and Tenant has been given no rent concessions or free rent other than as
specifically set forth in the Lease.  The
Landlord shall be a third party beneficiary of the certifications as set forth
in this paragraph.

 

 3.                              The Lease and rentals thereunder have been assigned to
Lender as security for repayment of the Loan. 
Lender, as such assignee, hereby directs Tenant to pay to Landlord all
rentals and other moneys due and to become due to Landlord under the Lease
until receipt of further direction from Lender. 
Upon receipt by Tenant of subsequent direction from Lender, Tenant shall
pay to Lender, or in accordance with such subsequent directions of Lender, all
such rentals and other sums due under the Lease, or amounts equal thereto.  Tenant shall have no responsibility or
ascertain whether such direction by Lender is permitted under the Mortgage or
such Assignment of Rents and Other Interests. 
Landlord, by its execution of consent form attached hereto, consents to
the foregoing.

 

 4.                              Tenant acknowledges that without the prior written
consent of the Lender, or except as permitted by the terms of the lease that no
modification of the Lease shall be permitted so as to materially reduce the
rents and other charges payable thereunder, or shorten or extend or renew the
term thereof or adversely affect the rights or increase the obligations of the
Landlord thereunder, or prepay rents or other charges under the Lease for more
than on month in advance.  In the event
of any default on the part of the Landlord under the Lease, Tenant will give
written notice thereof to the Lender, or its successor or assigns whose name
and address previously  shall have been
furnished to the Tenant in writing.  Any
right or remedy of Tenant resulting from or dependent upon such notice shall
take effect only after notice is go given to the Lender.  Performance by the Lender of any of the
Landlord’s obligations under the Lease in accordance with the terms of the
Lease shall satisfy provisions of the Lease requiring performance by the
Landlord, and the Lender, exercising reasonably due diligence, shall have the
reasonable additional period of time under the circumstances to complete such performance.

 

 5.                              If the interest of the Landlord under the Lease
Premises shall be transferred by reason of a foreclosure action or other
proceedings for enforcement of the Mortgage or pursuant to a transfer in lieu
of foreclosure, the Tenant shall be bound to and shall attorn to the person
acquiring the interests of the Landlord as a result of any such action or
proceeding and such person’s successors and assigns (any of the foregoing being
hereafter referred to as the “Successors”) upon the Successor succeeding to the
interest of the Landlord in and to the Lease Premises.  Said attornment shall be effective and
self-operative without the execution of any further instruments.  The Tenant, upon request, shall execute and
deliver any certificate or other instrument necessary or appropriate which the
Lender or the Successor may reasonably request to effect or confirm said
attornment by the Tenant.

 

 6.                              If the interest of the Landlord under the Lease shall
be transferred by reason of foreclosure or other proceedings for enforcement of
the Mortgage or pursuant to a transfer in lieu of foreclosure then, except as
provided in this Agreement, the Successor shall be bound to the Tenant under 

 

28

 

all of the terms,
covenants, and conditions of the Lease for the balance of the term thereof
remaining, with the same force and effect as if the Successor were the Landlord
(but subject to Paragraph 7 below).

 

 7.                              The Successor shall not and shall not be deemed to (a) adopt
or in any other manner be responsible or liable for any representations and
warranties made by the Landlord in the Lease (b) be liable for any act,
omission or default of Landlord or any prior Landlord and will not be subject
to any offsets or defenses which the Tenant might have against Landlord or any
prior Landlord, (c) be bound by any amendment or modification of the Lease
or by any prepayment of rents or other charges under the Lease for more than
one month unless such amendment, modification or prepayment was approved in
writing by the Lender, (d) be liable to Tenant for any refund of any
security deposit made by the Tenant pursuant to the Lease, except to the extent
that the Successor has actually received that security deposit, or (e) be
liable to Tenant in any event for any matter relating to the operation,
maintenance, or condition of the Mortgaged Premises or Leased Premises prior to
the date Successor acquires title to the Lease Premises.  Any rights of the Tenant to terminate or
cancel the Lease by reason of the failure of Landlord or any prior Landlord
under the Lease to perform any of its obligations under the Lease shall be
suspended if and while the Successor is exercising reasonably diligent efforts
under the circumstances to cause such obligations to be performed.  The obligations and liability of the
Successor shall be limited to and enforceable only against the Successor’s
estate and interest in the Leased Premises and not out of or against any other
assets or properties of the Successor.

 

 8.                              Notwithstanding anything in the Lease to the contrary,
if the interest of the Landlord under the Lease shall be transferred to the
Successor, then the Successor shall not be obligated to reconstruct the Leased
Premises following a casualty or condemnation thereto.

 

 9.                              If Tenant is not in default hereunder or under the
terms of the Lease, the Tenant will not be joined as a party defendant for the
purpose of terminating the lease in any foreclosure action or proceeding which
may be instituted or taken by the Lender, nor will the Tenant be evicted from
the Leased Premises, nor will the Tenant’s leasehold estate under the Lease be
terminated or disturbed, nor will any of the Tenant’s rights under the Lease be
affected in any way by reason of any default under the Mortgage.

 

10.                           This Agreement may not be modified except
by an agreement in writing signed by the parties hereto or their respective
successors in interest.  This Agreement
shall inure to the benefit of and be binding upon the parties hereto, their
respective heirs, representatives, successors and assigns.

 

11.                           Upon a valid expiration or termination of
the Lease for any reason, and provided the Lease shall not have been renewed or
otherwise extended and Tenant shall have no right to possession of the Leased
Premises, Tenant shall execute, acknowledge and deliver to the Landlord, the
Lender, and the Successor, a certificate attesting to the expiration or
termination of the Lease and waiving all rights to possession of the Leased
Premises.

 

12.                           All notices, demands or requests made
pursuant to, under or by virtue of this Agreement must be in writing and
delivered by hand or mailed to the party to whom the notice, demand or request
is being made by certified or registered mail, return receipt requested, at its
address set forth above.  Any party may
change the place that notices and demands are to be sent by written notice
delivered in accordance with this Agreement.

 

13.                           This Agreement is fully integrated and
not in need of parol evidence in order to reflect the intentions of the parties
hereto.  The parties hereto intend the
literal words of this Agreement to govern the subject matter hereof and all
prior negotiations, drafts and other extrinsic communications 

 

29

 

shall have no
significance or evidentiary effect.  This
Agreement shall be the whole and only agreement between the parties hereto with
regard to the subordination of the Lease and the leasehold interest of Tenant
thereunder to the lien or charge of the Mortgage in favor of Lender, and shall
supersede and control any prior agreements as to such, or any subordination,
including, but not limited to, those provisions, if any, contained in the Lease
which provide for the subordination of the Lease and the leasehold interest of
Tenant thereunder to a deed or deeds of trust or to a mortgage or mortgages to
be thereafter executed.  In the event any
one or more of the provisions of this Agreement shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision of this
Agreement, but this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Maryland.

 

14.                           This Agreement shall continue in effect
until all sums due by Landlord to Lender under the Note, the Mortgage and the
Assignment of Rents have been paid in full.

 

15.                           Tenant shall neither suffer nor itself
manufacture, store, handle, transport, dispose of, spill, leak, dump any toxic
or hazardous waste, medical waste or other waste products or substance (as they
may be defined in any federal or state statue, rule or regulation
pertaining to or governing such wastes, waste products or substances) on the
Premises at any time during the term, or extended term, of the Lease, except in
compliance with all applicable laws and regulations.

 

IN WITNESS
WHEREOF, the parties hereto have hereunto caused this Agreement to be duly
executed as of the day and year first above written.

 

 

	
  LENDER:

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
  BY:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CONSENT

  	
   

  
	
   

  	
   

  
	
  The undersigned
  consents to the foregoing.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LANDLORD:

  	
   

  
	
   

  	
   

  
	
  BEAVER DAM LIMITED
  LIABILITY COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
   

  
							

 

30

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