Document:

EXHIBIT 10.3

 

SECOND
AMENDMENT TO OPERATING AGREEMENT

AND AGREEMENT
TO REDEEM

MEMBERSHIP RIGHTS

 

THIS SECOND AMENDMENT TO
OPERATING AGREEMENT AND  AGREEMENT TO
REDEEM MEMBERSHIP RIGHTS (this “Agreement”), is made as of the 6th day of May,
1998 (the “Effective Date”), by and between David D. Smith (“David”), Beaver
Dam Limited Liability Company, a Maryland limited liability company, and J.
Duncan Smith, Frederick G. Smith and Robert E. Smith (the “Remaining Members”).

 

Explanatory
Statement

 

A.            Beaver
Dam Limited Liability Company, a Maryland limited liability company (the “Company”),
is governed by the provisions of an Operating Agreement (the “Operating
Agreement”) dated May 30th 1996, by and between David, Duncan,
Frederick, and Robert. Except as otherwise defined herein, capitalized terms
used herein shall have the respective meanings ascribed to them in the
Operating Agreement.

 

B.            The
Percentages are held as follows:

 

	
  Member

  	
   

  	
  Percentages

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  David

  	
   

  	
  13.75

  	
  %

  
	
  Frederick

  	
   

  	
  28.75

  	
  %

  
	
  Duncan

  	
   

  	
  28.75

  	
  %

  
	
  Robert

  	
   

  	
  28.75

  	
  %

  

 

C.            David
desires to sell, assign, transfer and convey all of his Membership Rights as
hereinafter set forth, and the Company desires to buy the same as hereinafter
set forth.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements set forth
herein, the parties agree as follows:

 

1.             Assignment;
Deliveries.  For the payment by the
Company to David of One Hundred Thirty-Five Thousand Five Hundred Forty-One
Dollars and Forty-Nine Cents ($135,541.49), receipt of which is hereby
acknowledged by David, David hereby sells, assigns, transfers and conveys to
the Company all rights, title and interest in any and all Membership Rights
that he owns either directly or indirectly, effective as of the Effective Date.
It is understood and agreed by the parties hereto that from and after the
Effective Date, David shall no longer be a Member (or be an Interest Holder) or
have any Membership Rights whatsoever and that as of the Effective Date, David
has withdrawn from the Company.

 

 

2.             Liability,
Profits and Assets.  David shall be
relieved of (and is hereby released by the Company and the Remaining Members
from) any liability for any and all debts, obligations and liabilities of the
Company or under the Operating Agreement, to the extent that, on or after the
Effective Date, such debts, obligations or liabilities arise, increase or
accrue (collectively, the “Future Debts, Obligations and Liabilities”), and
David shall not be entitled to any share of the profits losses, assets or distributions
of the Company (except for David’s share of the profits, distributions, assets
and losses, if any, that David was entitled to on or before the Effective
Date). The Remaining Members shall be entitled to all of the profits,
distributions, assets and losses of the Company that David would have otherwise
been entitled to but for this Agreement and the transactions contemplated
hereby, and the Remaining Members hereby assume from David all Future Debts,
Obligations and Liabilities that David would have been liable for but for this
Agreement and the transactions contemplated hereby. The Remaining Members
hereby jointly and severally agree to defend, indemnify, and hold harmless
David from, against, and in respect of, any and all claims, costs, expenses,
fees (including, without limitation, the reasonable fees of counsel),
liabilities, obligations, losses, damages, actions, suits, or proceedings, of
any nature, in connection with or arising from under or out of the Future
Debts, Obligations and Liabilities.

 

3.             Amendment
to Operating Agreement; Consent.  The
parties hereto agree that the provisions of Exhibit A to the Operating
Agreement are hereby amended as of the Effective Date by deleting them in their
entirety and by inserting in lieu thereof the provisions of Exhibit A to this
Amendment. The Remaining Members all consent to the Company entering into this
Agreement

 

4.             Attorneys’
Fees.  In the event of a breach or
threatened breach of this Agreement, the breaching party or the party
threatening to breach, as the case may be, shall pay the reasonable attorneys’
fees, costs and other expenses of the other party incurred as a result of or in
connection with such breach or threatened breach, including, without
limitation, any such attorneys’ fees, costs or other expenses incurred by such
other party in any litigation to recover damages hereunder or to otherwise
enforce this Agreement.

 

5.             Miscellaneous.

 

5.1           Section Headings.  Section headings are inserted for
convenience only and shall not limit or otherwise affect any of the provisions
of this Agreement.

 

5.2.          Entire
Agreement.  This Agreement, any
supplements hereto or thereto, and any instruments or documents delivered or to
be delivered in connection herewith or therewith represents the entire
agreement and understanding concerning the subject matter hereof and thereof
between the parties hereto, and supersede all other prior agreements,
understanding, negotiations and discussions, representations, warranties,
commitments, proposals, offers and contracts concerning the subject matter
hereof, whether oral or written.

 

5.3           Waivers;
Amendments.  Any of the terms or
conditions of this Agreement may be waived but only in writing by the party
which is entitled to the benefit thereof, and this Agreement may be amended or
modified in whole or in part only by an agreement in writing, executed by all
of the parties to this Agreement.

 

2

 

5.4.          Binding
Nature of Amendment.  This Agreement
shall be binding upon, and inure to the benefit of, the parties hereto and
their respective heirs, personal representatives, successors, and assigns.

 

5.5           Word
Usage.  As used herein, any reference
to the masculine, feminine or neuter gender shall include all genders, the
plural shall include the singular, and the singular shall include the plural.

 

5.6           Governing
Law.  This Agreement shall be
governed by, and interpreted in accordance with, the law of the State of
Maryland.

 

5.7           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

5.8           Severability.  In the event that any provision of this
Agreement shall be found to be unenforceable in any action or proceeding, the
remaining provisions shall remain in full force and effect.

 

5.9           Survival.  This Agreement shall survive the closing of
the transactions contemplated hereby.

 

5.10         Arbitration.  The parties hereto agree that the provisions
of the Maryland Uniform Arbitration Act and the Federal Arbitration Act are
applicable to this Agreement. Any question, dispute, claim and/or controversy
arising out of, relating to or in connection with this Agreement (including,
without limitation, the scope or applicability of this Section 4.10) or
any breach or alleged breach of this Agreement, shall be submitted to
arbitration conducted in accordance with the rules and procedures of the
American Arbitration Association (and if there is a conflict between such rules
and procedures on the one hand, and/or the Federal Arbitration Act or the
Maryland Uniform Arbitration Act on the other hand, the rules and procedures of
the American Arbitration Association shall control). Arbitration proceedings
shall be held in Baltimore, Maryland. The decision in the arbitration
proceeding shall be final and may be entered and enforced in any court of
competent jurisdiction. Nothing within this Section 4.10 shall be deemed
to preclude any party hereto from seeking interim or provisional relief or
protection from a court of competent jurisdiction, whether before, during or
after any arbitration proceeding.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

3

 

IN WITNESS WHEREOF, each
party hereto has executed and sealed this Agreement or caused it to be executed
and sealed on its behalf by its duly authorized representative, as of the day
and year first above written.

 

	
  WITNESS:

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ David D. Smith

  	
  (SEAL)

  
	
   

  	
  David D. Smith, individually

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ Frederick G. Smith

  	
  (SEAL)

  
	
   

  	
  Frederick G. Smith,
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ J. Duncan Smith

  	
  (SEAL)

  
	
   

  	
  J. Duncan Smith, Member

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ Robert E. Smith

  	
  (SEAL)

  
	
   

  	
  Robert E. Smith, Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAVER DAM LIMITED
  LIABILITY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Cam Smart

  	
   

  	
  By:

  	
  /s/ J. Duncan Smith

  	
  (SEAL)

  
	
   

  	
   

  	
  J. Duncan Smith, Member

  
					

 

4

 

Beaver Dam Limited
Liability Company

Operating
Agreement

 

Exhibit A

 

List of Members,
Capital, and Percentages

(as of May 6, 1998)

 

	
  Name,
  Address,

  and Taxpayer

  I.D. Number

  	
   

  	
  Cash Capital

  Contribution

  	
   

  	
  Percentages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frederick
  G. Smith

  	
   

  	
  $

  	
  500,508.32

  	
   

  	
  33 1/3

  	
  %

  
	
  7
  Timber Park Court

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lutherville,
  MD 21093

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.
  Duncan Smith

  	
   

  	
  $

  	
  500,508.34

  	
   

  	
  33 1/3

  	
  %

  
	
  1345
  Ivy Hill Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cockeysville,
  MD 21030

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert
  E. Smith

  	
   

  	
  $

  	
  500,508.33

  	
   

  	
  33 1/3

  	
  %

  
	
  3600
  Butler Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Glyndon,
  MD 21071

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5Exhibit 10.4

 

AGREEMENT OF LEASE

 

THIS AGREEMENT OF LEASE (“Lease”) is made this 18 day of December 1998
by and between BEAVER DAM LIMITED LIABILITY COMPANY, a Maryland limited
liability company (“Landlord”) and SINCLAIR COMMUNICATIONS, INC. (“Tenant”).

 

Intending to be legally bound, Landlord and Tenant agree as set forth
below.  See attached Addenda sheets. p.
15, 16

 

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 41,334 rentable square feet, as
shown on Exhibit “A” attached hereto and made part of hereof, 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. The Building contains 90,000 rentable square feet.

 

2.     LEASE TERM. The lease term (the “Lease Term”) shall
commence on the commencement date (the “Commencement Date”) which shall be
August 1, 1999 and shall continue until July 31, 2009 and thereafter unless
extended or sooner terminated as provided herein.

 

3.     FIXED RENT. Fixed rent (the “Fixed Rent”) is payable by
Tenant beginning on the Commencement Date in monthly installations each equal
to (See Rent Schedule - Rider #1), representing one-twelfth (1/12) of
the annual Fixed Rent (the “Annual Fixed Rent”) equal to (See Rent Schedule
- Rider #1), 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 I
(1) of Exhibit “C” hereto. Annual Fixed Rent shall be subject to adjustment as
provided in Section II of Exhibit “C” hereto. In addition, if the Lease Term
commences on a day other than the first day of a calendar month, Tenant shall
pay to Landlord, on or before the Commencement Date of the Lease Term, a pro
rata portion of the monthly installment of rent (Including Fixed Rent and any Additional
Rent as herein provided), such pro rata portion to be based on the actual
number of calendar days remaining in such partial month after the Commencement
Date of the Lease Term. If the Lease Term shall expire on other than the last
day of a calendar month, such monthly installment of Fixed Rent and Additional Rent
shall be prorated for each calendar day of such partial month. 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
NationsBank (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, 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 deposited with Landlord the sum
of Seventy-One Thousand Four Hundred Ninety-Four and 50/100 Dollars
($71,494.50) 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

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

1

 

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 other uses
incidental to and associated with Class A office buildings 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.     IMPROVEMENTS TO PREMISES.

 

7.1.    By Landlord.

 

7.1.1.  The Tenant shall cause
detailed working drawings to be fully prepared at its expense by a designer of
its choice, who shall consult with the Landlord in preparing the same, and
shall deliver such working drawings to Landlord, on or before May 1, 1999. Such
working drawings must be in sufficient detail to allow Landlord to (a)
calculate the cost of constructing all of Tenant’s improvements, and (b) obtain
a building and any other necessary permits for the construction of Tenant’s
improvements. Within five (5) days after Landlord provides Tenant with the
calculations of the costs of constructing Tenant’s improvements, Tenant shall
approve the working drawings and the costs of construction. Any costs or
expenses incurred by Landlord because of changes to the working drawings made
by Tenant after final approval of the costs, shall be paid to the Landlord by
the Tenant. If (a)(i) the Tenant defaults in furnishing such working drawings
to the Landlord by the time set forth above, (ii) the Tenant fails to give
final approval to the working drawings and the costs by the time set forth
above, (iii) the Tenant requests any changes to the working drawings after the
Tenant has approved the costs of construction, or (iv) the Tenant has
requirements in its working drawings that cause unreasonable delays in
commencing or completing Tenant’s improvements, (b) as a result thereof, the
Landlord is delayed in commencing and/or completing such improvements beyond
the dates on which, but for such delay, the Landlord would in its reasonable
judgment have commenced or completed them, and (c) such completion occurs after
the date which would have been the Commencement Date, then (without altering or
impairing the Landlord’s rights under the provisions of this Lease on account
of such default, and without altering or impairing any other of Landlord’s
rights, including, without limitation, such rights set forth in Section 5.1.2)
the Commencement Date shall be the date which would have been the Commencement
Date for purposes of the provisions of this Lease, had such delay not occurred.

 

7.1.2.  Allocation of costs.
The cost of such improvements shall be allocated between the Landlord and the
Tenant in the following manner:

 

(a)  Except as is otherwise provided herein, the Landlord shall bear the
expense of (i) providing and installing as part of such improvements those
materials and other items of improvements, of such manufacture, design,
capacity, finish and color, which are described in a schedule attached hereto
as \ (hereinafter referred to as “the Standard Improvement Items”), (ii) to
such maximum extent or in such maximum quantity (hereinafter referred to as “the
Standard Allowance”) as is specified therein. If the improvements to be made to
the Premises pursuant to the provisions of this subparagraph utilize less or
fewer than the Standard Allowance of any Standard Improvement Item, the Tenant
shall receive no credit against the Rent or otherwise on account thereof.

 

(b)  The Landlord shall submit the working drawings, as provided by the
Tenant, to the Landlord’s general contractor for the Building promptly upon
their approval by the Landlord and the Tenant, for such contractor’s
calculation the price which it will charge for constructing such improvements.
The

 

2

 

Landlord
shall notify the Tenant in writing of such price as calculated by such
contractor (and shall in such notice allocate such price between (i) those of
such improvements which are included in the Standard Allowance of Standard
Improvement Items, and (ii) the remainder of such improvements), and the Tenant
shall, at the Landlord’s option, be deemed to have approved such price and
allocation for all purposes of the provisions of this Lease unless the Tenant
gives the Landlord written notice to the contrary within five (5) days
thereafter. All improvements shall be done by Landlord’s general contractor.

 

(c)  If the improvements to be made to the Premises pursuant to the
provisions of this subsection require materials or other items other than the
Standard Improvement Items, and/or Standard Improvement Items in excess of the
Standard Allowance, and the cost of constructing such improvements shall, if
and to the extent that it exceeds the cost which would have been incurred if
such improvements consisted only of the Standard Allowance of Standard
Improvement Items, be borne by the Tenant. The Tenant shall pay the amount of
such excess to the Landlord in two (2) equal installments, the first of which
shall be due when such price and allocation are approved by the Tenant, as
aforesaid, and the second of which shall be due at the Commencement Date.

 

7.1.3. The Landlord shall use its reasonable efforts to complete such
improvements promptly, but shall have no liability to the Tenant hereunder if
prevented from doing so by reason of any (a) strike, lock-out or other labor
troubles, (b) governmental restrictions or limitations, (c) failure or shortage
of electrical power, gas, water, fuel oil, or other utility or service, (d)
riot, war, insurrection or other national or local emergency, (e) accident,
flood, fire or other casualty, (f) adverse weather condition, (g) other act of
God, (h) inability to obtain a building permit or a certificate of occupancy,
or (i) other cause similar or dissimilar to any of the foregoing and beyond the
Landlord’s reasonable control. In such event, (a) the Commencement Date shall
(subject to the operation and effect of the provisions of paragraph 5.1.1) be
postponed for a period equaling the length of such delay, (b) the Termination
Date shall be determined pursuant to the provisions of subsection 1.1 by
reference to the Commencement Date as so postponed, and (c) the Tenant shall
accept possession of the Premises within ten (10) days after such completion.

 

7.2.    Acceptance of possession. Except for (a) latent defects or incomplete work which would not
reasonably have been revealed by an inspection of the Premises made for the
purpose of discovering the same when the Landlord delivers possession of the
Premises to the Tenant, and (b) any other item of incomplete work set forth on
a “punch list” prepared by the Tenant and approved in writing by the Landlord
before such delivery of possession, by its assumption of possession of the
Premises the Tenant shall for all purposes of the provisions of this Lease be
deemed to have accepted them and to have acknowledged them to be in the
condition called for hereunder.

 

8.     ALTERATIONS OR IMPROVEMENTS BY
TENANT.

 

8.1     During the Lease Term, 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 unreasonable
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 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, 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

 

3

 

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.

 

8.4     Tenant covenants and agrees:

 

(a)  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), 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 judgement 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 therefor; and (iv) if Tenant
requires installation a separate or supplementary heating, cooling, ventilating
and/or air conditioning system

 

4

 

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.

 

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 therefor, 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;

 

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 or (ii) 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 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-

 

5

 

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
unreasonable 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. 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.

 

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 judgement, 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 therefor 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 judgement, 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 judgement, 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 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

 

6

 

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 judgement 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 fully and faithfully to perform the obligations and observe the
conditions of this Lease, and (iii) the negligence or otherwise tortious act of
Tenant or anyone in or about the Building on behalf of or at the invitation or
right of Tenant. 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 $1,000,000 (or
such higher limits as may be 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.  At
or prior to the Commencement Date, Tenant shall deposit the policy or policies
of such insurance, or certificates 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.

 

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

 

7

 

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 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 therefor, 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).

 

8

 

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:

 

(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 an 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 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 attorney’s fees of fifteen
percent (15%) of the amount due by Tenant. 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 of 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

 

9

 

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 therefor. 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.

 

17.5   Expenses. In the
event that Landlord commences suit for the repossession of the Demised Premises,
for the recovery or 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 immediately prior to occupancy execute Tenant Estoppel
Certificate as provided for herein and attached hereto as Exhibit “G”, and from
time to time, at the request of Landlord, upon ten (10) business days notice,
execute and deliver to Landlord a statement provided by Landlord to Tenant, 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

 

10

 

agreement
between Landlord and Tenant concerning any such continuance of the term, Tenant
shall pay Landlord (1) 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.   RELOCATION OF TENANT.  
Landlord, at its sole expense, on at least thirty (30) days prior written
notice to Tenant, may require Tenant to move from the Premises to another suite
of comparable size and decor in the Building or in the Business Park in order
to permit Landlord to consolidate the Premises with other adjoining space or to
be leased to another tenant in the Building. In the event of any such
relocation, Landlord shall pay all the expenses of preparing and decorating the
new premises so that they will be substantially similar to the Premises and
shall also pay the expenses of moving Tenant’s furniture and equipment to the
new premises.

 

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 therefor, 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,
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 except for KLNB, Inc.

 

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). All
notices and communications to Tenant may also be given by leaving the same at
the Demised Premises during business hours.

 

11

 

25.1   If to Landlord:

 

25.2   If to Tenant:

 

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.

 

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 24 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.

 

12

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
  BEAVER DAM LIMITED
  LIABILITY COMPANY

  
	
   

  	
   

  
	
  Witness:

  	
  By:

  	
  Frederick Smith, General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Leiloni Reynolds

  	
   

  	
  By:

  	
  /s/
  Frederick Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  By:

  	
  SINCLAIR COMMUNICATIONS,
  INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Leiloni Reynolds

  	
   

  	
  By:

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David B. Amy

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  	
   

  
						

 

13

 

 

RENT SCHEDULE

RIDER #1

 

	
  Year

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
  $

  	
  71,494.50

  	
   

  	
  $

  	
  857,934.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
  $

  	
  73,639.33

  	
   

  	
  $

  	
  883,672.02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
  01-02

  	
   

  	
  $

  	
  75,848.51

  	
   

  	
  $

  	
  910,182.18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
  02-03

  	
   

  	
  $

  	
  78,123.97

  	
   

  	
  $

  	
  937,487.64

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
  03-04

  	
   

  	
  $

  	
  80,467.68

  	
   

  	
  $

  	
  965,612.27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
  04-05

  	
   

  	
  $

  	
  82,881.72

  	
   

  	
  $

  	
  994,580.64

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
  05-06

  	
   

  	
  $

  	
  85,368.17

  	
   

  	
  $

  	
  1,024,418.06

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
  06-07

  	
   

  	
  $

  	
  87,929.17

  	
   

  	
  $

  	
  1,055,150.60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
  07-08

  	
   

  	
  $

  	
  90,567.09

  	
   

  	
  $

  	
  1,086,805.12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
  08-09

  	
   

  	
  $

  	
  93,284.10

  	
   

  	
  $

  	
  1,119,409.27

  	
   

  

 

14

 

ADDENDA TO SCI/BEAVER DAM LLC LEASE

 

Section
1. Demise Premises.   Beaver Dam LLC will grant SBG/SCI first right
of refusal on any space on the second floor as well as on the first floor.

 

Section
2. Lease Term.   Beaver
Dam LLC will grant a 5-year option with the rate not to exceed the fair market
value of like space. However, in no instance will the rate be less than the
rent paid for the last year on the current lease. The Lease term will begin the
day the general contractor, Roy L. Kirby and Sons, has released the building to
Beaver Dam LLC in compliance with state and county laws to function for public
use. This release date would be the date that Sinclair Communications, Inc.
would have full access to initiate occupancy or additional tenant improvements
of their leased space. This date would be a minimum of 60 days after the tenant
improvements are undertaken by the tenant. The projected occupancy date is
currently July 1, 1999.

 

Section3.
Fixed Rent.   See
Exhibit C Addendum.

 

Section
7. Improvements to Premises.   Add to Exhibit B: SBG/SCI will be allotted $15
per square foot of the rentable square feet as Tenant improvements. Beaver Dam
LLC will provide a ceiling. The ceiling will be 2x2 or 2x4 grids which will be
provided above and beyond the $15 per sq. ft. Tenant improvement allowance.
This ceiling will be provided at no cost to SBG/SCI. All other improvements to
the space will be at the expense of SBG/SCI.

 

Section
9. Covenants to Landlord.   Normal business hours will be 8:00 A.M.-6:00
P.M., Monday-Friday, 9:00 A.M.-1:00 P.M., Saturday, no holidays or Sundays.

 

Section
10. Covenants of Tenant.   If
allowed by law, signage will be present on the parking lot as well as a first
floor lobby directory. At this time, it is the intent of Beaver Dam LLC to
place an external sign fixed to the building which will read “Sinclair”.

 

Section
11. Assignment and Subletting.   The Tenant will have the right to assign their
lease to the purchaser of the Tenant’s business. The purchase of said business
will have the identical responsibilities to the Landlord as did the
Tenant/seller of the business. Assignee must have a net worth equal to or
greater than that of the Tenant as of the Lease Commencement Date and as of the
effective date of the proposed assignment or subletting.

 

Section
21. Allocation of Tenant.   Delete section.

 

Section
24. Broker.   KLNB,
Inc. is the agent of the Landlord. The Landlord is responsible for KLNB’s fees.

 

Exhibit
C.  Provision regarding additional rent
and adjustment to fix rent. As a point of clarification, the baseline for operating expenses will
be established during the first year

 

15

 

of the Tenant’s lease. This
will be covered by the Tenant’s sq. ft. cost. However, at the beginning of the
second year of the lease, any increases in costs above the Year 1 baseline
related to items under Exhibit “C” will be paid by the Tenant’s on a pro-rata
per sq. ft. share.

 

16

 

EXHIBIT “B”

 

SPECIAL STIPULATIONS

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

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
1999.

 

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:

 

1.     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;

 

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.

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

C-1

 

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 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.     “Tenants’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   Commencing on August 1, 1999, Tenant shall
pay during the 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.

 

C-2

 

2.3   Landlord shall, as soon as possible after the
close 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.

 

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.

 

C-3

 

EXHIBIT “D”

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

EXHIBIT “E”

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
judgement 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 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 Lessor 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

 

	
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  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

E-1

 

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
judgement, 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.

 

E-2

 

EXHIBIT “F”

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE
AGREEMENT

 

THIS
AGREEMENT, made as of the       day of                            ,
19    , 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                                ,
19   , (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 request to confirm said subordination by the Tenant.

 

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

 

	
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  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

F-1

 

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 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 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 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 (a)
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.

 

F-2

 

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 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 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 Commonwealth of
Pennsylvania.

 

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.

 

F-3

 

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

 

	
   

  	
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  BY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONSENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The undersigned consents
  to the foregoing.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LANDLORD:

  	
   

  
	
   

  	
  BEAVER DAM LIMITED
  LIABILITY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  	
   

  
						

 

F-4

 

EXHIBIT “G” 

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              ,
19       .  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 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 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:

  	
   

  	
  , 19

  	
   

  	
   

  
								

 

G-1

 

AGREEMENT OF LEASE

 

THIS AGREEMENT OF LEASE (“Lease”) is  made this 18 day
of December 1998 by and between BEAVER DAM LIMITED LIABILITY COMPANY, a
Maryland limited liability company (“Landlord”) and SBG GROUP (“Tenant”).

 

Intending
to be legally bound, Landlord and Tenant agree as set forth below.  See attached addenda pages 15 & 16.

 

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 9,400 rentable square feet, as shown on Exhibit “A” attached hereto
and made part of hereof, 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. The Building contains
90,000 square feet.

 

2.     LEASE
TERM. The lease term (the “Lease
Term”) shall commence on the commencement date (the “Commencement Date”) which
shall be August 1, 1999 and shall continue until July 31, 2009 and thereafter
unless extended or sooner terminated as provided herein.

 

3.     FIXED RENT. Fixed
rent (the “Fixed Rent”) is payable by Tenant beginning on the Commencement Date
in monthly installations each equal to (See Rent Schedule - Rider #1),  representing one-twelfth
(1/12) of the annual Fixed Rent (the “Annual Fixed Rent”) equal to (See Rent
Schedule - Rider #1), 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 I (1) of Exhibit “C”
hereto. Annual Fixed Rent shall be subject to adjustment as provided in Section
II of Exhibit “C” hereto. In addition, if the Lease Term commences on a day
other than the first day of a calendar month, Tenant shall pay to Landlord, on
or before the Commencement Date of the Lease Term, a pro rata portion of the
monthly installment of rent (Including Fixed Rent and any Additional Rent as herein
provided), such pro rata portion to be based on the actual number of calendar
days remaining in such partial month after the Commencement Date of the Lease
Term. If the Lease Term shall expire on other than the last day of a calendar
month, such monthly installment of Fixed Rent and Additional Rent shall be
prorated for each calendar day of such partial month. 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 NationsBank (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, 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 deposited with Landlord the sum of Sixteen Thousand Four Hundred
Fifty and 00/100 Dollars ($16,450.00) 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

 

	
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  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

1

 

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 other uses incidental to and associated with Class
A office buildings 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.     IMPROVEMENTS TO PREMISES.

 

7.1.    By Landlord.

 

7.1.1.  The Tenant shall cause
detailed working drawings to be fully prepared at its expense by a designer of
its choice, who shall consult with the Landlord in preparing the same, and
shall deliver such working drawings to Landlord, on or before May 1, 1999. Such
working drawings must be in sufficient detail to allow Landlord to (a)
calculate the cost of constructing all of Tenant’s improvements, and (b) obtain
a building and any other necessary permits for the construction of Tenant’s
improvements. Within five (5) days after Landlord provides Tenant with the
calculations of the costs of constructing Tenant’s improvements, Tenant shall
approve the working drawings and the costs of construction. Any costs or
expenses incurred by Landlord because of changes to the working drawings made
by Tenant after final approval of the costs, shall be paid to the Landlord by
the Tenant. If (a)(i) the Tenant defaults in furnishing such working drawings
to the Landlord by the time set forth above, (ii) the Tenant fails to give
final approval to the working drawings and the costs by the time set forth
above, (iii) the Tenant requests any changes to the working drawings after the
Tenant has approved the costs of construction, or (iv) the Tenant has
requirements in its working drawings that cause unreasonable delays in
commencing or completing Tenant’s improvements, (b) as a result thereof, the
Landlord is delayed in commencing and/or completing such improvements beyond
the dates on which, but for such delay, the Landlord would in its reasonable
judgment have commenced or completed them, and (c) such completion occurs after
the date which would have been the Commencement Date, then (without altering or
impairing the Landlord’s rights under the provisions of this Lease on account
of such default, and without altering or impairing any other of Landlord’s
rights, including, without limitation, such rights set forth in Section 5.1.2)
the Commencement Date shall be the date which would have been the Commencement
Date for purposes of the provisions of this Lease, had such delay not occurred.

 

7.1.2.  Allocation of costs.
The cost of such improvements shall be allocated between the Landlord and the
Tenant in the following manner:

 

(a)  Except as is otherwise provided herein, the Landlord shall bear the
expense of (i) providing and installing as part of such improvements those
materials and other items of improvements, of such manufacture, design,
capacity, finish and color, which are described in a schedule attached hereto
as Exhibit B (hereinafter referred to as “the Standard Improvement Items”),
(ii) to such maximum extent or in such maximum quantity (hereinafter referred
to as “the Standard Allowance”) as is specified therein. If the improvements to
be made to the Premises pursuant to the provisions of this subparagraph utilize
less or fewer than the Standard Allowance of any Standard Improvement Item, the
Tenant shall receive no credit against the Rent or otherwise on account
thereof.

 

(b)  The Landlord shall submit the working drawings, as provided by the
Tenant, to the Landlord’s general contractor for the Building promptly upon
their approval by the Landlord and the Tenant, for such contractor’s
calculation of the price which it will charge for constructing such
improvements. The

 

2

 

Landlord
shall notify the Tenant in writing of such price as calculated by such
contractor (and shall in such notice allocate such price between (i) those of
such improvements which are included in the Standard Allowance of Standard
Improvement Items, and (ii) the remainder of such improvements), and the Tenant
shall, at the Landlord’s option, be deemed to have approved such price and
allocation for all purposes of the provisions of this Lease unless the Tenant
gives the Landlord written notice to the contrary within five (5) days
thereafter. All improvements shall be done by Landlord’s general contractor.

 

(c)  If the improvements to be made to the Premises pursuant to the
provisions of this subsection require materials or other items other than the
Standard Improvement Items, and/or Standard Improvement Items in excess of the
Standard Allowance, and the cost of constructing such improvements shall, if
and to the extent that it exceeds the cost which would have been incurred if
such improvements consisted only of the Standard Allowance of Standard
Improvement Items, be borne by the Tenant. The Tenant shall pay the amount of
such excess to the Landlord in two (2) equal installments, the first of which
shall be due when such price and allocation are approved by the Tenant, as
aforesaid, and the second of which shall be due at the Commencement Date.

 

7.1.3.  The Landlord shall use
its reasonable efforts to complete such improvements promptly, but shall have
no liability to the Tenant hereunder if prevented from doing so by reason of
any (a) strike, lock-out or other labor troubles, (b) governmental restrictions
or limitations, (c) failure or shortage of electrical power, gas, water, fuel
oil, or other utility or service, (d) riot, war, insurrection or other national
or local emergency, (e) accident, flood, fire or other casualty, (f) adverse
weather condition, (g) other act of God, (h) inability to obtain a building
permit or a certificate of occupancy, or (i) other cause similar or dissimilar
to any of the foregoing and beyond the Landlord’s reasonable control. In such
event, (a) the Commencement Date shall (subject to the operation and effect of
the provisions of paragraph 5.1.1) be postponed for a period equaling the
length of such delay, (b) the Termination Date shall be determined pursuant to
the provisions of subsection 1.1 by reference to the Commencement Date as so
postponed, and (c) the Tenant shall accept possession of the Premises within
ten (10) days after such completion.

 

7.2.    Acceptance of possession. Except for (a) latent defects or incomplete work which would not
reasonably have been revealed by an inspection of the Premises made for the
purpose of discovering the same when the Landlord delivers possession of the
Premises to the Tenant, and (b) any other item of incomplete work set forth on
a “punch list” prepared by the Tenant and approved in writing by the Landlord
before such delivery of possession, by its assumption of possession of the
Premises the Tenant shall for all purposes of the provisions of this Lease be
deemed to have accepted them and to have acknowledged them to be in the
condition called for hereunder.

 

8.     ALTERATIONS OR IMPROVEMENTS
BY TENANT.

 

8.1     During the Lease Term, 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 unreasonable
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 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, 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

 

3

 

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.

 

8.4     Tenant covenants and agrees:

 

(a)  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), 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 judgement 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 therefor; and (iv) if Tenant requires
installation a separate or supplementary heating, cooling, ventilating and/or
air conditioning system

 

4

 

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.

 

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 therefor, 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;

 

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 or (ii) 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 etseg.),
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 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-

 

5

 

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 unreasonable 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. 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.

 

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-govemmental 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 judgement, 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 therefor 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 judgement, 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 judgement, 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 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

 

6

 

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 properly 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 judgement 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 fully and faithfully to perform the obligations and observe the
conditions of this Lease, and (iii) the negligence or otherwise tortious act of
Tenant or anyone in or about the Building on behalf of or at the invitation or
right of Tenant. 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 $1,000,000 (or
such higher limits as may be 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.   At
or prior to the Commencement Date, Tenant shall deposit the policy or policies
of such insurance, or certificates 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.

 

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

 

7

 

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 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 therefor, 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).

 

8

 

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:

 

(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 an 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 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 attorney’s fees of fifteen
percent (15%) of the amount due by Tenant. 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 of 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

 

9

 

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 therefor. 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.

 

17.5   Expenses. In the
event that Landlord commences suit for the repossession of the Demised Premises,
for the recovery or 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 immediately prior to occupancy execute Tenant Estoppel
Certificate as provided for herein and attached hereto as Exhibit “G”, and from
time to time, at the request of Landlord, upon ten (10) business days notice,
execute and deliver to Landlord a statement provided by Landlord to Tenant, 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

 

10

 

agreement between Landlord
and Tenant concerning any such continuance of the term, Tenant shall pay
Landlord (1) 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.   RELOCATION OF TENANT.   Landlord,
at its sole expense, on at least thirty (30) days prior written notice to
Tenant, may require Tenant to move from the Premises to another suite of
comparable size and decor in the Building or in the Business Park in order to
permit Landlord to consolidate the Premises with other adjoining space or to be
leased to another tenant in the Building. In the event of any such relocation, Landlord
shall pay all the expenses of preparing and decorating the new premises so that
they will be substantially similar to the Premises and shall also pay the
expenses of moving Tenant’s furniture and equipment to the new premises.

 

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 therefor, 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,
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 except for KLNB, Inc.

 

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). All
notices and communications to Tenant may also be given by leaving the same at
the Demised Premises during business hours.

 

11

 

25.1    If to Landlord:

 

25.2   If to Tenant:

 

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.

 

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 24 above. Landlord and Tenant
agree to waive trial by jury in any action, proceeding or counterclaim brought
by either of the parries 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.

 

12

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
  BEAVER DAM LIMITED
  LIABILITY COMPANY

  
	
   

  	
   

  
	
  Witness:

  	
  By:

  	
  Frederick Smith, General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Leiloni Reynolds

  	
   

  	
  By:

  	
    /s/
  Frederick Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  By:

  	
  SBG GROUP

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Leiloni Reynolds

  	
   

  	
  By:

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David B. Amy

  	
   

  
	
   

  	
   

  	
  Title:

  	
  V.P. CFO

  	
   

  
						

 

13

 

RENT SCHEDULE

RIDER #1

 

 

	
  Year

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
  $

  	
  16,450.00

  	
   

  	
  $

  	
  197,400.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
  $

  	
  16,943.50

  	
   

  	
  $

  	
  203,322.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
  $

  	
  17,451.80

  	
   

  	
  $

  	
  209,421.66

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
  $

  	
  17,975.35

  	
   

  	
  $

  	
  215,704.30

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
  $

  	
  18,514.61

  	
   

  	
  $

  	
  222,175.43

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
  $

  	
  19,070.05

  	
   

  	
  $

  	
  228,840.70

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7

  	
   

  	
   

  	
  $

  	
  19,642.16

  	
   

  	
  $

  	
  235,705.92

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8

  	
   

  	
   

  	
  $

  	
  20,231.42

  	
   

  	
  $

  	
  242,777.10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9

  	
   

  	
   

  	
  $

  	
  20,838.36

  	
   

  	
  $

  	
  250,060.41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10

  	
   

  	
   

  	
  $

  	
  21,463.51

  	
   

  	
  $

  	
  257,562.22

  	
   

  
											

 

14

 

EXHIBIT “B”

 

SPECIAL STIPULATIONS

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

ADDENDA TO SBG/BEAVER DAM LLC LEASE

 

Section
1. Demise Premises.
Beaver Dam LLC will grant SBG/SCI first right of refusal on any space on the
second floor as well as on the first floor.

 

Section
2. Lease Term. Beaver
Dam LLC will grant a 5-year option with the rate not to exceed the fair market
value of like space. However, in no instance will the rate be less than the
rent paid for the last year on the current lease. The Lease term will begin the
day the general contractor, Roy L. Kirby and Sons, has released the building to
Beaver Dam LLC in compliance with state and county laws to function for public
use. This release date would be the date that Sinclair Broadcast Group, Inc.
would have full access to initiate occupancy or additional tenant improvements
of their leased space. This date would be a minimum of 60 days after the tenant
improvements are undertaken by the tenant. The projected occupancy date is
currently July 1, 1999.

 

Section
3. Fixed Rent. See
Exhibit C Addendum.

 

Section
7. Improvements to Premises. Add to Exhibit B: SBG/SCI will be allotted $15 per square foot of the
rentable square feet as Tenant improvements. Beaver Dam LLC will provide a
ceiling. The ceiling will be 2x2 or 2x4 grids which will be provided above and
beyond the $15 per sq. ft. Tenant improvement allowance. This ceiling will be
provided at no cost to SBG/SCI. All other improvements to the space will be at
the expense of SBG/SCI.

 

Section
9. Covenants to Landlord. Normal business hours will be 8:00 A.M.-6:00 P.M., Monday-Friday, 9:00
A.M.-l :00 P.M., Saturday, no holidays or Sundays.

 

Section
10. Covenants of Tenant.
If allowed by law, signage will be present on the parking lot as well as a
first floor lobby directory. At this time, it is the intent of Beaver Dam LLC
to place an external sign fixed to the building which will read “Sinclair”.

 

Section
11. Assignment and Subletting. The Tenant will have the right to assign their lease to the purchaser
of the Tenant’s business. The purchase of said business will have the identical
responsibilities to the Landlord as did the Tenant/seller of the business.
Assignee must have a net worth equal to or greater than that of the Tenant as
of the Lease Commencement Date and as of the effective date of the proposed
assignment or subletting.

 

Section
21. Allocation of Tenant. Delete section.

 

Section
24. Broker. KLNB,
Inc. is the agent of the Landlord. The Landlord is responsible for KLNB’s fees.

 

Exhibit
C. Provision regarding additional rent and adjustment to fix rent. As a point of clarification, the baseline
for operating expenses will be established during the first year

 

15

 

of the Tenant’s lease. This
will be covered by the Tenant’s sq. ft. cost. However, at the beginning of the
second year of the lease, any increases in costs above the Year 1 baseline
related to items under Exhibit “C” will be paid by the Tenant’s on a pro-rata
per sq. ft. share.

 

16

 

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 1999.

 

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:

 

1.     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;

 

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.

 

	
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  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

C-1

 

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 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.     “Tenants’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   Commencing on August 1, 1999, Tenant shall
pay during the 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.

 

C-2

 

2.3   Landlord shall, as soon as possible after the
close 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.

 

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.

 

C-3

 

EXHIBIT “D”

 

	
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  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

EXHIBIT “E”

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
judgement 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 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 Lessor 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

 

	
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  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

E-1

 

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
judgement, 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.

 

E-2

 

EXHIBIT “F”

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE
AGREEMENT

 

THIS AGREEMENT, made as of
the       day
of                            ,
19    , 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                                                    ,
19     , (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
request to confirm said subordination by the Tenant.

 

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

 

	
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  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

F-1

 

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 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 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 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 (a)
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.

 

F-2

 

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 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 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 Commonwealth of
Pennsylvania.

 

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.

 

F-3

 

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:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONSENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The undersigned consents
  to the foregoing.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LANDLORD:

  	
   

  
	
   

  	
  BEAVER DAM LIMITED
  LIABILITY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  	
   

  
						

 

F-4

 

EXHIBIT “G”

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 anyway 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                      ,
19    .  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 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 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:

  	
   

  	
  , 19

  	
   

  	
   

  
								

 

G-1

AGREEMENT OF LEASE

 

THIS
AGREEMENT OF LEASE (“Lease”) is made this 25 day of May, 2000 by and between BEAVER DAM LIMITED LIABILITY
COMPANY, a Maryland limited liability company, (“Landlord”) and SINCLAIR
BROADCAST GROUP (“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 _ 1,148 rentable square feet, as shown on Exhibit “A” attached
hereto and made part of hereof, 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.  The Building contains 90,000 rentable square
feet.

 

2.                                       LEASE TERM.  The
lease term (the “Lease Term”) shall commence on the commencement date (the
“Commencement Date”) which shall be May 1, 2000, and shall continue until April
30, 2010 and thereafter unless extended or sooner terminated as provided
herein.

 

3.                                       FIXED RENT.  Fixed
rent (the “Fixed Rent”) is payable by Tenant beginning on the Commencement Date
in monthly installations each equal to (See Rent Schedule - Rider#l),
representing one-twelfth (1/12) of the annual Fixed Rent (the “Annual Fixed
Rent”) equal to (See Rent Schedule - Rider#l), 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 I (1) of Exhibit “C” hereto.  Annual Fixed Rent shall be subject to
adjustment as provided in Section II of Exhibit “C” hereto.  In addition, if the Lease Term commences on a
day other than the first day of a calendar month, Tenant shall pay to Landlord,
on or before the Commencement Date of the Lease Term, a pro rata portion of the
monthly installment of rent (Including Fixed Rent and any Additional Rent as
herein provided), such pro rata portion to be based on the actual number of
calendar days remaining in such partial month after the Commencement Date of
the Lease Term.  If the Lease Term shall
expire on other than the last day of a calendar month, such monthly installment
of Fixed Rent and Additional Rent shall be prorated for each calendar day of
such partial month.  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 NationsBank (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,
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 deposited with Landlord the sum of One Thousand Six Hundred Twenty Six and
33/100 Dollars ($1,626.33) 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

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

1

 

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 other uses incidental to and associated with Class A office
buildings 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.                                       IMPROVEMENTS TO PREMISES.

 

7.1.                              By Landlord.

 

7.1.1.  The Tenant shall cause detailed working
drawings to be fully prepared at its expense by a designer of its choice, who
shall consult with the Landlord in preparing the same, and shall deliver such
working drawings to Landlord, on or before May 1, 2000.  Such working drawings must be in sufficient
detail to allow Landlord to (a) calculate the cost of constructing all of
Tenant’s improvements, and (b) obtain a building and any other necessary
permits for the construction of Tenant’s improvements. Within five (5) days
after Landlord provides Tenant with the calculations of the costs of
constructing Tenant’s improvements, Tenant shall approve the working drawings
and the costs of construction.  Any costs
or expenses incurred by Landlord because of changes to the working drawings
made by Tenant after final approval of the costs, shall be paid to the Landlord
by the Tenant.  If (a)(i) the Tenant
defaults in furnishing such working drawings to the Landlord by the time set
forth above, (ii) the Tenant fails to give final approval to the working
drawings and the costs by the time set forth above, (iii) the Tenant requests
any changes to the working drawings after the Tenant has approved the costs of construction,
or (iv) the Tenant has requirements in its working drawings that cause
unreasonable delays in commencing or completing Tenant’s improvements, (b) as a
result thereof, the Landlord is delayed in commencing and/or completing such
improvements beyond the dates on which, but for such delay, the Landlord would
in its reasonable judgment have commenced or completed them, and (c) such
completion occurs after the date which would have been the Commencement Date,
then (without altering or impairing the Landlord’s rights under the provisions
of this Lease on account of such default, and without altering or impairing any
other of Landlord’s rights, including, without limitation, such rights set
forth in Section 5.1.2) the Commencement Date shall be the date which would
have been the Commencement Date for purposes of the provisions of this Lease,
had such delay not occurred.

 

7.1.2.  Allocation of costs.
 The cost of such improvements shall be
allocated between the Landlord and the Tenant in the following manner:

 

(a)  Except as is otherwise
provided herein, the Landlord shall bear the expense of (i) providing and
installing as part of such improvements those materials and other items of
improvements, of such manufacture, design, capacity, finish and color, which
are described in a schedule attached hereto as Exhibit B (hereinafter referred
to as “the Standard Improvement Items”), (ii) to such maximum extent or in such
maximum quantity (hereinafter referred to as “the Standard Allowance”) as is
specified therein.  If the improvements
to be made to the Premises pursuant to the provisions of this subparagraph
utilize less or fewer than the Standard Allowance of any Standard Improvement
Item, the Tenant shall receive no credit against the Rent or otherwise on account
thereof.

 

(b)  The Landlord shall submit
the working drawings, as provided by the Tenant, to the Landlord’s general
contractor for the Building promptly upon their approval by the Landlord and
the Tenant, for such contractor’s calculation of the price which it will charge
for constructing such improvements.  The

 

2

 

Landlord
shall notify the Tenant in writing of such price as calculated by such
contractor (and shall in such notice allocate such price between (i) those of
such improvements which are included in the Standard Allowance of Standard
Improvement Items, and (ii) the remainder of such improvements), and the Tenant
shall, at the Landlord’s option, be deemed to have approved such price and
allocation for all purposes of the provisions of this Lease unless the Tenant
gives the Landlord written notice to the contrary within five (5) days
thereafter.  All improvements shall be
done by Landlord’s general contractor.

 

(c)  If the improvements to be made to the
Premises pursuant to the provisions of this subsection require materials or
other items other than the Standard Improvement Items, and/or Standard
Improvement Items in excess of the Standard Allowance, and the cost of
constructing such improvements shall, if and to the extent that it exceeds the
cost which would have been incurred if such improvements consisted only of the
Standard Allowance of Standard Improvement Items, be borne by the Tenant. The
Tenant shall pay the amount of such excess to the Landlord in two (2) equal
installments, the first of which shall be due when such price and allocation
are approved by the Tenant, as aforesaid, and the second of which shall be due
at the Commencement Date.

 

7.1.3.  The Landlord shall use
its reasonable efforts to complete such improvements promptly, but shall have
no liability to the Tenant hereunder if prevented from doing so by reason of
any (a) strike, lock-out or other labor troubles, (b) governmental restrictions
or limitations, (c) failure or shortage of electrical power, gas, water, fuel
oil, or other utility or service, (d) riot, war, insurrection or other national
or local emergency, (e) accident, flood, fire or other casualty, (f) adverse
weather condition, (g) other act of God, (h) inability to obtain a building
permit or a certificate of occupancy, or (i) other cause similar or dissimilar
to any of the foregoing and beyond the Landlord’s reasonable control.  In such event, (a) the Commencement Date shall
(subject to the operation and effect of the provisions of paragraph 5.1.1) be
postponed for a period equaling the length of such delay, (b) the Termination
Date shall be determined pursuant to the provisions of subsection 1.1 by
reference to the Commencement Date as so postponed, and (c) the Tenant shall
accept possession of the Premises within ten (10) days after such completion.

 

7.2.                              Acceptance
of possession.  Except for (a) latent
defects or incomplete work which would not reasonably have been revealed by an
inspection of the Premises made for the purpose of discovering the same when
the Landlord delivers possession of the Premises to the Tenant, and (b) any
other item of incomplete work set forth on a “punch list” prepared by the
Tenant and approved in writing by the Landlord before such delivery of
possession, by its assumption of possession of the Premises the Tenant shall
for all purposes of the provisions of this Lease be deemed to have accepted
them and to have acknowledged them to be in the condition called for hereunder.

 

8.                                       ALTERATIONS OR IMPROVEMENTS BY
TENANT.

 

8.1                                 During the Lease Term, 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
unreasonable 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 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, 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

 

3

 

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.

 

8.4                                 Tenant covenants and agrees:

 

(a)  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), 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
judgement 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 therefor; and (iv) if Tenant requires installation a
separate or supplementary heating, cooling, ventilating and/or air conditioning
system Tenant shall pay all costs in connection with the furnishing,
installation and operation thereof.  Landlord shall

 

4

 

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.

 

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 therefor, 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;

 

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 or (ii) 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 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;

 

5

 

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 unreasonable 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. 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.

 

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 judgement, 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 therefor 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 judgement, 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 judgement,
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
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

 

6

 

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 judgement 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 fully and faithfully
to perform the obligations and observe the conditions of this Lease, and (iii)
the negligence or otherwise tortious act of Tenant or anyone in or about the
Building on behalf of or at the invitation or right of Tenant.  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 $1,000,000 (or such higher limits as may be 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.  At or prior to the Commencement Date, Tenant
shall deposit the policy or policies of such insurance, or certificates
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.

 

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.

 

7

 

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 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 therefor, 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).

 

8

 

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:

 

(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
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 of 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

 

9

 

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 therefor.  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.

 

17.5                           Expenses.  In the event that Landlord
commences suit for the repossession of the Demised Premises, for the recovery
or 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 immediately prior to occupancy execute Tenant Estoppel
Certificate as provided for herein and attached hereto as Exhibit “G”, and from
time to time, at the request of Landlord, upon ten (10) business days notice,
execute and deliver to Landlord a statement provided by Landlord to Tenant, 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

 

10

 

agreement
between Landlord and Tenant concerning any such continuance of the term, Tenant
shall pay Landlord (1) 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.                                 RELOCATION OF TENANT.  Landlord,
at its sole expense, on at least thirty (30) days prior written notice to
Tenant, may require Tenant to move from the Premises to another suite of
comparable size and decor in the Building or in the Business Park in order to
permit Landlord to consolidate the Premises with other adjoining space or to be
leased to another tenant in the Building.  In the event of any such relocation, Landlord
shall pay all the expenses of preparing and decorating the new premises so that
they will be substantially similar to the Premises and shall also pay the
expenses of moving Tenant’s furniture and equipment to the new premises.

 

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 therefor, 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, 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 except for KLNB, Inc.

 

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).  All
notices and communications to Tenant may also be given by leaving the same at
the Demised Premises during business hours.

 

25.1                           If to Landlord:

 

11

 

25.2                           If to Tenant:

 

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.

 

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 24 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.

 

12

 

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:  Frederick Smith, General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  By:

  	
  /s/ Frederick Smith

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT: Sinclair Broadcast
  Group, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness:

  	
  By:

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Vicky D. Evans

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  David B. Amy

  	
   

  
	
   

  	
  Title: 

  	
  Executive
  Vice President

  	
   

  
							

 

13

 

 

RENT SCHEDULE

RIDER #1

 

	
  Year

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
  1,626.33

  	
   

  	
  19,516.00

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
  1,707.65

  	
   

  	
  20,491.80

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
  1,793.03

  	
   

  	
  21,516.39

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
  1,882.68

  	
   

  	
  22,592.21

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
  1,976.82

  	
   

  	
  23,721.82

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
  2,075.66

  	
   

  	
  24,907.91

  	
   

  
	
   

  	
  7

  	
   

  	
   

  	
  2,179.44

  	
   

  	
  26,153.31

  	
   

  
	
   

  	
  8

  	
   

  	
   

  	
  2,288.41

  	
   

  	
  27,460.97

  	
   

  
	
   

  	
  9

  	
   

  	
   

  	
  2,402.84

  	
   

  	
  28,834.02

  	
   

  
	
   

  	
  10

  	
   

  	
   

  	
  2,522.98

  	
   

  	
  30,275.72

  	
   

  

 

14

 

ADDENDA TO SBG/BEAVER DAM LLC LEASE

 

Section
2. Lease Term.  Beaver Dam LLC will grant the option of
leasing the 1,148 rentable square feet for $813.16(1/2 month’s rent) for either
six months and/or until tenant occupancy(whichever shall occur first).  After six months and/or tenant occupancy, the
rent will increase to $1,626.33 per month in accordance with the Rent
Schedule-Rider #1.

 

Section
2. Lease Term.  Beaver Dam LLC will grant a 5-year option with
the rate not to exceed the fair market value of like space.  However, in no instance will the rate be less
than the rent paid for the last year of like space.

 

Section
3. Fixed Rent.  See Exhibit C Addendum.

 

Section
7. Improvements to Premises.  Add to Exhibit B: SBG will be
allotted $15 per square foot of the rentable square feet as Tenant
improvements.  Beaver Dam LLC will
provide a ceiling.  The ceiling will be
2x2 or 2x4 grids which will be provided above and beyond the $15 per sq. ft.  Tenant improvement allowance.  This ceiling will be provided at no cost to
SBG.  All other improvements to the space
will be at the expense of SBG.  The
contractor chosen for improvements to premises shall be approved by Beaver Dam,
LLC.

 

Section
9. Covenants to Landlord.  Normal business hours will be
8:00 A.M.-6:00 P.M. Monday-Friday, 9:00 A.M.-1:00 P.M., Saturday, no holidays
or Sundays.

 

Section
10. Covenants of Tenant.  If allowed by law, signage will be
present on the parking lot as well as first floor lobby directory.  At this time, it is the intent of Beaver Dam
LLC to place an external sign fixed to the building which will read “Sinclair”.

 

Section
11. Assignment and Subletting.  The Tenant will have the right
to assign their lease to the purchaser of the Tenant’s business.  The purchase of said business will have the
identical responsibilities to the Landlord as did the Tenant/seller of the
business.  Assignee must have a net worth
equal to or greater that that of the Tenant as of the Lease Commencement Date
and as of the effective date of the proposed assignment or subletting.

 

Section
21. Allocation of Tenant.  Delete section.

 

Exhibit
C. Provision regarding additional rent and adjustment to fix rent.  As a
point of clarification, the baseline for operating expenses will be established
during the first year of the Tenant’s lease.  This will be covered by the Tenant’s sq. ft.
cost.  However, at the beginning of the
second year of the lease, any increases in costs above the Year 1 baseline
related to items under Exhibit “C” will be paid by the Tenant’s on a pro-rata
per sq. ft. share.

 

	
  Please initial: TS

  	
   

  
	
   

  	
   

  
	
  Landlord

  	
  Tenant

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
				

 

15

 

EXHIBIT “A”

DEMISED PREMISES

 

	
  Please initial: 

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
  Tenant

  
				

 

 

 

EXHIBIT “B”

SPECIAL STIPULATIONS

 

	
  Please initial: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landlord

  	
  Tenant

  
				

 

 

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 2000,

 

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:

 

1.                                       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;

 

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.

 

	
  Please initial: 

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
  Tenant

  
				

 

C-1

 

 

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 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.                                      “Tenants’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                                 Commencing on May 1, 2000, Tenant shall pay
during the 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 (l/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.

 

C-2

 

2.3                                 Landlord shall, as soon as possible after the
close 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.

 

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.

 

C-3

 

EXHIBIT “D”

 

	
  Please Initial: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landlord

  	
  Tenant

  
				

 

 

EXHIBIT “E”

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
judgement 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 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 Lessor 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

 

	
  Please initial: 

  	
   

  
	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
  Tenant

  
				

 

E-1

 

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 judgement, 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.

 

E-2

 

EXHIBIT “F”

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE AGREEMENT

 

THIS
AGREEMENT, made as of the        day of                         ,
200  , 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                               ,
200  , (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 request to confirm said
subordination by the Tenant.

 

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

 

	
  Please Initial: 

  	
   

  
	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
  Tenant

  
				

 

F-1

 

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 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 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 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 (a) 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.

 

F-2

 

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 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 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 Commonwealth of Pennsylvania.

 

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.

 

F-3

 

EXHIBIT “G”

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
                        ,
200  .  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 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 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:                       ,
  200   

  
					

 

G-1

AGREEMENT OF LEASE

 

THIS AGREEMENT OF LEASE
(this “Lease”) is made this 14th day of May, 2002, 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 ten thousand four hundred twelve (10,412)
rentable square feet, as shown on Exhibit “A” attached hereto and made part of
hereof, 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.

 

2.                                       LEASE TERM. The
lease term (the “Lease Term”) shall commence (the “Commencement Date”) on the
date this Lease is signed, and shall continue until April 30, 2010 and
thereafter unless extended or sooner terminated as provided herein.

 

3.                                       FIXED RENT.  Fixed rent (the “Fixed Rent”) is payable
by Tenant in monthly installments in the amounts set forth in the Rent Schedule
attached hereto as Rider No. 1.  Fixed
Rent is payable by Tenant beginning on the earlier to occur of September 15,
2002, or the date that Tenant commences its broadcast operation, and is payable
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 1 of Exhibit “C”
hereto.  Annual Fixed Rent shall be
subject to adjustment as provided in Section 2 of Exhibit “C” hereto.  In addition, if the Lease Term commences on a
day other than the first day of a calendar month, Tenant shall pay to Landlord,
on or before the Commencement Date of the Lease Term, a pro rata portion of the
monthly installment of rent (Including Fixed Rent and any Additional Rent as
herein provided), such pro rata portion to be based on the actual number of
calendar days remaining in such partial month after the Commencement Date of
the Lease Term.  If the Lease Term shall
expire on other than the last day of a calendar month, such monthly installment
of Fixed Rent and Additional Rent shall be prorated for each calendar day of
such partial month.  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 ten percent (10%) 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,
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.  Intentionally deleted.

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ J.D.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

1

 

6.                                       USE OF DEMISED
PREMISES.  Tenant covenants and
agrees to use and occupy the Demised Premises for general office purposes and
general broadcast purposes, including without limitation a television broadcast
studio, and other uses incidental to and associated with such purposes 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 material increase in the premium cost for any
insurance which Landlord may then have in effect with respect the Building
generally, unless Tenant shall agree to pay for any such increase.

 

7.                                       IMPROVEMENTS TO
PREMISES.

 

7.1.                              Tenant
Improvements.  The cost of all
improvements to the Demised Premises necessary for the Tenant’s use and
occupancy thereof shall be paid for by Tenant.  All such tenant improvements shall be
performed in accordance with Section 8 of this Lease.

 

7.2.                              Acceptance
of possession.  By its assumption of
possession of the Demised Premises the Tenant shall for all purposes of the
provisions of this Lease be deemed to have accepted them and to have
acknowledged them to be in acceptable condition.

 

8.                                       ALTERATIONS OR
IMPROVEMENTS BY TENANT.

 

8.1                                 During
the Lease Term, Tenant shall not make any material 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 reasonable conditions as Landlord
may require, including, without limitation, that Tenant be required to pay for
any increased cost to Landlord occasioned thereby or attributed thereto.  Landlord acknowledges and agrees that Tenant
shall modify the Demised Premises to use at least part of same as a television
broadcast studio.  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 reasonable cost of removing such alterations
or additions and the restoration of the Demised Premises.  Landlord shall determine any such reasonable
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
written notice together with appropriate supporting documentation.

 

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, 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:

 

2

 

(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 orally or 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)                                  Landlord
may require Tenant to provide 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)                                 Tenant
shall deliver to Landlord a payment and performance bond for each contractor
and subcontractor as Landlord in its sole discretion shall require.  Such payment and performance bonds shall be issued
by companies acceptable to Landlord in its sole discretion, and shall otherwise
be acceptable in form and content to Landlord in its sole discretion.

 

(e)                                  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.

 

8.4                                 Tenant
covenants and agrees:

 

(a)                                  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 material 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 reasonably 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 8 and shall
commence on the date of execution hereof.  Notwithstanding the foregoing, Tenant shall
not be responsible for any property damage or personal injury due to the
negligence of Landlord or its agents or assigns.

 

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 on business days from 8:00 a.m. to 6:00 p.m. (excluding holidays),
heat and air conditioning equipment, elevator service (where applicable),
janitorial and cleaning services, electricity, and hot and cold water, all in
amounts consistent with

 

3

 

services provided in similar buildings in the community, provided that:
(i) Tenant shall, at its expense, install meters to measure the electricity
consumed at the Demised Premises; (ii) 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; (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 therefor; and (iv) if Tenant requires installation a
separate or supplementary heating, cooling, 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.

 

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 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 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 therefor, 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 8, 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;

 

10.8                           Without
the prior written consent of Landlord, not place within the Demised
Premises or bring into the Building any machinery, equipment, or other
personalty other than customary office furnishings and machinery and
equipment necessary for the operation of a television studio, but in no event
shall such machinery and equipment exceed 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;

 

4

 

10.10                     Comply
with all rules and regulations which may hereafter be promulgated by Landlord 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 Demised 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 unreasonable 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.  In the event of an
assignment by Tenant with Landlord’s written consent, Tenant shall be released
from liability under this Lease as of the date Landlord is given notice of such
assignment.  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.

 

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 judgement, 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 therefor 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 judgement,
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 judgement, 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

 

5

 

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 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 judgement 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 reasonable 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 fully and faithfully to perform the obligations and observe the
conditions of this Lease, and (iii) the
negligence or otherwise tortious act of Tenant or anyone in or about the
Building on behalf of or at the invitation or right of Tenant.  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
$1,000,000 (or such higher limits as may be determined by Landlord from time to
time) and reasonable business interruption insurance.  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.  At or prior to the Commencement Date, Tenant
shall deposit the policy or policies of such insurance, or certificates
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.

 

6

 

14.2                           Landlord
covenants and agrees to exonerate, indemnify, defend, protect, and save Tenant harmless
from and against any and all claims, demands, expenses, losses, suits, and
damages as may be occasioned by reason of (i) the failure of Landlord fully and
faithfully to perform the obligations and observe the conditions of this Lease,
and (ii) the negligence or otherwise tortious act of Landlord, its agents,
assigns, servants, or employees.

 

14.3                           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.  However, in no event shall any such entry by
Landlord or its agents or other representatives unreasonably interfere with
Tenant’s use of the Demised Premises as a television studio.

 

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 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
therefor, 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, nor unreasonably interferes with
Tenant’s ability to conduct its business, including without limitation its
operation of a television studio.

 

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, 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

 

7

 

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 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.

 

8

 

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:

 

(a)                                  Termination
of Lease.  Landlord may terminate
this Lease, by written notice to Tenant, upon ten (10) days’ written notice and
opportunity to cure.  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.
 Upon terminating this Lease, 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 Tenant shall
remain liable for all sums specified in this Section 17.

 

(c)                                  Removal
of Contents by Landlord.  After
giving thirty (30) days’ written notice to Tenant, Landlord may remove all
property from the Demised Premises, 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.

 

(d)                                 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.

 

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.

 

17.5                           Expenses.
 In the event that Landlord commences
suit for the repossession of the Demised Premises, for the recovery or rent or
any other amount due under the provisions of this Lease, or because of the
material 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 reasonable 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, after any notice and cure period provided for in this Lease, 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

 

9

 

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 immediately prior to occupancy execute Tenant Estoppel Certificate as
provided for herein and attached hereto as Exhibit “G”, and from time to time,
at the request of Landlord, upon ten (10) business days notice, execute and
deliver to Landlord a statement provided by Landlord to Tenant, 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 (1) 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) one hundred twenty-five
percent (125%) of 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 reasonable 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.                                 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.

 

22.                                 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 therefor, 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, 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.

 

23.                                 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 this Article 23.

 

24.                                 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

 

10

 

by notice to the other party as required hereby).  All notices and communications to Tenant may
also be given by leaving the same at the Demised Premises during business
hours.

 

	
  24.1

  	
   

  	
  If to Landlord:

  	
   

  	
  Beaver Dam Limited Liability Company

  
	
   

  	
   

  	
   

  	
   

  	
  10706 Beaver Dam Road

  
	
   

  	
   

  	
   

  	
   

  	
  Cockeysville, Maryland 21030

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.2

  	
   

  	
  If to Tenant:

  	
   

  	
  Sinclair Broadcast Group, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  10706 Beaver Dam Road

  
	
   

  	
   

  	
   

  	
   

  	
  Cockeysville, MD 21030

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: General Counsel

  

 

 

25.                                 MISCELLANEOUS.

 

25.1                           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.

 

25.2                           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.

 

25.3                           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.  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.

 

25.4                           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.

 

25.5                           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.

 

25.6                           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.

 

25.7                           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.

 

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

 

11

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
  BEAVER DAM LIMITED LIABILITY COMPANY

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  By:

  	
  /s/ J. Duncan Smith

  	
   

  
	
   

  	
  Name:

  	
  J. Duncan Smith

  	
   

  
	
   

  	
  Title:

  	
  Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
  SINCLAIR BROADCAST GROUP, INC.

  
	
  Witness:

  	
   

  	
   

  
	
  /s/ Leiloni Reynolds

  	
   

  	
  By:

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
  Name:

  	
  David B. Amy

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  

 

12

 

EXHIBIT “B”

SPECIAL STIPULATIONS

 

1.                                       Landlord
shall furnish electricity to the Demised Premises for normal office use on
business days from 8:00 a.m. to 6:00 p.m. (excluding holidays).  Tenant shall pay for any electricity consumed
at the Demised Premises during any other times.

 

2.                                       The
normal working hours for the security guard at the building are from 8:45 a.m.
to 5:15 p.m. on business days (excluding holidays).  If Tenant requests the services of the
security guard at other times, Landlord will provide one, if available, and
Tenant will pay for the guard’s services.

 

3.                                       The
parking lot for the Building shall remain lighted until 11:00 p.m. on a daily
basis.

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ J.D.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

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 the Tenant’s Proportionate Share of the amount
of Operating Expenses for the calendar year 2002.

 

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:

 

1.                                       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;

 

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.

 

	
  Please Initial:

  	
   

  	
   

  
	
  /s/ J.D.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

C-1

 

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 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.                                      “Tenants’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
seventy four thousand two hundred (74,200) net rentable square feet which is
the aggregate net rentable square feet in the Building.

 

2.                                       Additional
Rent for Operating Expenses.

 

2.1                                 Commencing
on January 1, 2003, Tenant shall pay during the 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 (l/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.

 

C-2

 

2.3                                 Landlord
shall, as soon as possible after the close 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.

 

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.

 

C-3

 

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 judgement 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 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 Lessor 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

 

	
  Please Initial:

  	
   

  	
   

  
	
  /s/ J.D.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

D-1

 

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 judgement, 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.

 

D-2

 

EXHIBIT “E”

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE AGREEMENT

 

THIS AGREEMENT, made as
of the               day
of                        ,
200  , 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                     ,
200  , (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 request to confirm said
subordination by the Tenant.

 

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

 

	
  Please Initial:

  	
   

  	
   

  
	
  /s/ J.D.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

E-1

 

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 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 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 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 (a) 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.

 

E-2

 

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 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 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 Commonwealth of Pennsylvania.

 

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.

 

E-3

 

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:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONSENT

  
					

 

The undersigned consents to the foregoing.

 

	
   

  	
  LANDLORD:

  BEAVER DAM LIMITED/LIABILITY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ J. Duncan Smith

  	
   

  
	
   

  	
  Name:

  	
    J. Duncan Smith

  	
   

  
	
   

  	
  Title:

  	
    Member

  	
   

  

 

E-4

 

EXHIBIT “F”

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
                     ,
200  .  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 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 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:                       ,
  200   

  
					

 

F-1

 

RENT SCHEDULE
RIDER #1

 

	
  Lease

  Year

  	
   

  	
  Exp.

  Date

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
  1

  	
   

  	
  04/30/03

  	
   

  	
  14,316.50

  	
   

  	
  171,798.00

  	
   

  
	
  2

  	
   

  	
  04/30/04

  	
   

  	
  14,746.00

  	
   

  	
  176,951.94

  	
   

  
	
  3

  	
   

  	
  04/30/05

  	
   

  	
  15,188.37

  	
   

  	
  182,260.50

  	
   

  
	
  4

  	
   

  	
  04/30/06

  	
   

  	
  15,644.03

  	
   

  	
  187,728.31

  	
   

  
	
  5

  	
   

  	
  04/30/07

  	
   

  	
  16,113.35

  	
   

  	
  193,360.16

  	
   

  
	
  6

  	
   

  	
  04/30/08

  	
   

  	
  16,596.75

  	
   

  	
  199,160.97

  	
   

  
	
  7

  	
   

  	
  04/30/09

  	
   

  	
  17,094.65

  	
   

  	
  205,135.80

  	
   

  
	
  8

  	
   

  	
  04/30/10

  	
   

  	
  17,607.49

  	
   

  	
  211,289.87

  	
   

  

 

AGREEMENT OF LEASE

 

THIS AGREEMENT OF LEASE (“Lease”)
is made this 25 day of May, 2000 by and between BEAVER DAM LIMITED LIABILITY
COMPANY, a Maryland limited liability company, (“Landlord”) and SINCLAIR
BROADCAST GROUP (“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 3,757 rentable square
feet, as shown on Exhibit “A” attached hereto and made part of hereof, 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.  The
Building contains 90,000 rentable square feet.

 

2.                                       LEASE TERM. The lease term (the “Lease Term”) shall commence
on the commencement date (the “Commencement Date”) which shall be May 1, 2000,
and shall continue until April 30, 2010 and thereafter unless extended or
sooner terminated as provided herein.

 

3.                                       FIXED RENT. Fixed rent (the “Fixed Rent”) is payable by
Tenant beginning on the Commencement Date in monthly installations each equal
to (See Rent Schedule - Rider#l), representing one- twelfth (1/12) of the
annual Fixed Rent (the “Annual Fixed Rent”) equal to (See Rent Schedule -
Rider#l), 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 I(1) of Exhibit “C” hereto. Annual Fixed Rent shall be
subject to adjustment as provided in Section II of Exhibit “C” hereto. In
addition, if the Lease Term commences on a day other than the first day of a
calendar month, Tenant shall pay to Landlord, on or before the Commencement
Date of the Lease Term, a pro rata portion of the monthly installment of rent
(Including Fixed Rent and any Additional Rent as herein provided), such pro
rata portion to be based on the actual number of calendar days remaining in
such partial month after the Commencement Date of the Lease Term. If the Lease
Term shall expire on other than the last day of a calendar month, such monthly
installment of Fixed Rent and Additional Rent shall be prorated for each
calendar day of such partial month. 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 NationsBank (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, 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 deposited with Landlord the sum of Six Thousand eight Hundred
Eighteen and 95/100 ($6,818.95) 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

 

	
  Please Initial:

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

1

 

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 other uses incidental to and
associated with Class A office buildings 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.                                       IMPROVEMENTS
TO PREMISES.

 

7.1.                              By
Landlord.

 

7.1.1.                     The
Tenant shall cause detailed working drawings to be fully prepared at its
expense by a designer of its choice, who shall consult with the Landlord in
preparing the same, and shall deliver such working drawings to Landlord, on or
before May 1, 2000. Such working drawings must be in sufficient detail to allow
Landlord to (a) calculate the cost of constructing all of Tenant’s
improvements, and (b) obtain a building and any other necessary permits for the
construction of Tenant’s improvements. Within five (5) days after Landlord
provides Tenant with the calculations of the costs of constructing Tenant’s
improvements, Tenant shall approve the working drawings and the costs of
construction. Any costs or expenses incurred by Landlord because of changes to
the working drawings made by Tenant after final approval of the costs, shall be
paid to the Landlord by the Tenant. If (a)(i) the Tenant defaults in furnishing
such working drawings to the Landlord by the time set forth above, (ii) the
Tenant fails to give final approval to the working drawings and the costs by
the time set forth above, (iii) the Tenant requests any changes to the working
drawings after the Tenant has approved the costs of construction, or (iv) the
Tenant has requirements in its working drawings that cause unreasonable delays
in commencing or completing Tenant’s improvements, (b) as a result thereof, the
Landlord is delayed in commencing and/or completing such improvements beyond
the dates on which, but for such delay, the Landlord would in its reasonable
judgment have commenced or completed them, and (c) such completion occurs after
the date which would have been the Commencement Date, then (without altering or
impairing the Landlord’s rights under the provisions of this Lease on account
of such default, and without altering or impairing any other of Landlord’s
rights, including, without limitation, such rights set forth in Section 5.1.2)
the Commencement Date shall be the date which would have been the Commencement
Date for purposes of the provisions of this Lease, had such delay not occurred.

 

7.1.2.                     Allocation
of costs. The cost of such improvements shall be allocated between the Landlord
and the Tenant in the following manner:

 

(a)                                  Except
as is otherwise provided herein, the Landlord shall bear the expense of (i) providing
and installing as part of such improvements those materials and other items of
improvements, of such manufacture, design, capacity, finish and color, which
are described in a schedule attached hereto as Exhibit B (hereinafter referred
to as “the Standard Improvement Items”), (ii) to such maximum extent or in such
maximum quantity (hereinafter referred to as “the Standard Allowance”) as is
specified therein. If the improvements to be made to the Premises pursuant to
the provisions of this subparagraph utilize less or fewer than the Standard
Allowance of any Standard Improvement Item, the Tenant shall receive no credit
against the Rent or otherwise on account thereof.

 

(b)                                 The
Landlord shall submit the working drawings, as
provided by the Tenant, to the Landlord’s general contractor for the
Building promptly upon their approval by the Landlord and the Tenant, for such
contractor’s calculation of the price which it will charge for constructing
such improvements. The Landlord shall notify the Tenant in writing of such
price as calculated by such contractor (and shall in such

 

2

 

notice allocate such price between (i) those of such improvements which
are included in the Standard Allowance of Standard Improvement Items, and (ii)
the remainder of such improvements), and the Tenant shall, at the Landlord’s
option, be deemed to have approved such price and allocation for all purposes
of the provisions of this Lease unless the Tenant gives the Landlord written
notice to the contrary within five (5) days thereafter. All improvements shall
be done by Landlord’s general contractor.

 

(c)                                  If
the improvements to be made to the Premises pursuant to the provisions of this
subsection require materials or other items other than the Standard Improvement
Items, and/or Standard Improvement Items in excess of the Standard Allowance,
and the cost of constructing such improvements shall, if and to the extent that
it exceeds the cost which would have been incurred if such improvements
consisted only of the Standard Allowance of Standard Improvement Items, be
borne by the Tenant. The Tenant shall pay the amount of such excess to the
Landlord in two (2) equal installments, the first of which shall be due when
such price and allocation are approved by the Tenant, as aforesaid, and the
second of which shall be due at the Commencement Date.

 

7.1.3.                     The
Landlord shall use its reasonable efforts to complete such improvements
promptly, but shall have no liability to the Tenant hereunder if prevented from
doing so by reason of any (a) strike, lock-out or other labor troubles, (b)
governmental restrictions or limitations, (c) failure or shortage of electrical
power, gas, water, fuel oil, or other utility or service, (d) riot, war, insurrection
or other national or local emergency, (e) accident, flood, fire or other
casualty, (f) adverse weather condition, (g) other act of God, (h) inability to
obtain a building permit or a certificate of occupancy, or (i) other cause
similar or dissimilar to any of the foregoing and beyond the Landlord’s
reasonable control. In such event, (a) the Commencement Date shall (subject to
the operation and effect of the provisions of paragraph 5.1.1) be postponed for
a period equaling the length of such delay, (b) the Termination Date shall be
determined pursuant to the provisions of subsection 1.1 by reference to the
Commencement Date as so postponed, and (c) the Tenant shall accept possession
of the Premises within ten (10) days after such completion.

 

7.2.                              Acceptance
of possession. Except for (a) latent defects or incomplete work which would
not reasonably have been revealed by an inspection of the Premises made for the
purpose of discovering the same when the Landlord delivers possession of the
Premises to the Tenant, and (b) any other item of incomplete work set forth on
a “punch list” prepared by the Tenant and approved in writing by the Landlord
before such delivery of possession, by its assumption of possession of the
Premises the Tenant shall for all purposes of the provisions of this Lease be
deemed to have accepted them and to have acknowledged them to be in the
condition called for hereunder.

 

8.                                      ALTERATIONS OR
IMPROVEMENTS BY TENANT.

 

8.1                                 During
the Lease Term, 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 unreasonable 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 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, 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

 

3

 

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.

 

8.4                                 Tenant
covenants and agrees:

 

(a)                                  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), 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
judgement 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 therefor; and (iv) if Tenant requires installation a
separate or supplementary heating, cooling, ventilating and/or air conditioning
system Tenant shall pay all costs in connection with the furnishing, installation
and operation thereof. Landlord shall

 

4

 

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.

 

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 therefor, 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;

 

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 or (ii)
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 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;

 

5

 

 

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
unreasonable 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. 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.

 

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 judgement, 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 therefor
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 judgement, 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 judgement, 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 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

 

6

 

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 judgement 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 fully and faithfully to perform the obligations and observe the
conditions of this Lease, and (iii) the negligence or otherwise tortious act of
Tenant or anyone in or about the Building on behalf of or at the invitation or
right of Tenant. 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 $1,000,000 (or
such higher limits as may be 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.  At
or prior to the Commencement Date, Tenant shall deposit the policy or policies
of such insurance, or certificates 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.

 

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.

 

7

 

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 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
therefor, 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).

 

8

 

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:

 

(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 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 of 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

 

9

 

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 therefor. 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.

 

17.5                           Expenses.
In the event that Landlord commences suit for the repossession of the Demised Premises,
for the recovery or 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 immediately prior to occupancy execute Tenant Estoppel Certificate as
provided for herein and attached hereto as Exhibit “G”, and from time to time,
at the request of Landlord, upon ten (10) business days notice, execute and
deliver to Landlord a statement provided by Landlord to Tenant, 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

 

10

 

agreement between Landlord and Tenant concerning any such continuance
of the term, Tenant shall pay Landlord (1) 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.                                 RELOCATION
OF TENANT.  Landlord, at its sole
expense, on at least thirty (30) days prior written notice to Tenant, may
require Tenant to move from the Premises to another suite of comparable size and
decor in the Building or in the Business Park in order to permit Landlord to
consolidate the Premises with other adjoining space or to be leased to another
tenant in the Building. In the event of any such relocation, Landlord shall pay
all the expenses of preparing and decorating the new premises so that they will
be substantially similar to the Premises and shall also pay the expenses of
moving Tenant’s furniture and equipment to the new premises.

 

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 therefor, 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, 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 except for KLNB, Inc.

 

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). All
notices and communications to Tenant may also be given by leaving the same at
the Demised Premises during business hours.

 

25.1                           If
to Landlord:

 

11

 

25.2                           If
to Tenant:

 

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.

 

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 24 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.

 

12

 

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:      Frederick
  Smith, General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  By:

  	
  /s/ Frederick Smith

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT: Sinclair Broadcast Group, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness:

  	
  By:

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Vicky D. Evans

  	
   

  	
  By:

  	
  David B. Amy

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
							

 

13

 

RENT SCHEDULE

RIDER #1

 

	
  Year

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
  6,818.96

  	
   

  	
  81,827.46

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
  7,159.90

  	
   

  	
  85,918.83

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
  7,517.90

  	
   

  	
  90,214.77

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
  7,893.79

  	
   

  	
  94,725.51

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
  8,288.48

  	
   

  	
  99,461.79

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
  8,702.91

  	
   

  	
  104,434.88

  	
   

  
	
   

  	
  7

  	
   

  	
   

  	
  9,138.05

  	
   

  	
  109,656.62

  	
   

  
	
   

  	
  8

  	
   

  	
   

  	
  9,594.95

  	
   

  	
  115,139.45

  	
   

  
	
   

  	
  9

  	
   

  	
   

  	
  10,074.70

  	
   

  	
  120,896.43

  	
   

  
	
   

  	
  10

  	
   

  	
   

  	
  10,578.44

  	
   

  	
  126,941.25

  	
   

  

 

14

 

ADDENDA TO SBG/BEAVER DAM LLC LEASE

 

Section 2. Lease Term.
Beaver Dam LLC will grant the option of leasing the 3,757 rentable square feet
for $3,409.48(1/2 month’s rent) for either six months and/or until tenant
occupancy(whichever shall occur first). After six months and/or tenant
occupancy, the rent will increase to $6,818.96 per month in accordance with the
Rent Schedule-Rider #1.

 

Section 2. Lease Term.
Beaver Dam LLC will grant a 5-year option with the rate not to exceed the fair
market value of like space. However, in no instance will the rate be less than
the rent paid for the last year of like space.

 

Section 3. Fixed Rent.  See Exhibit C Addendum.

 

Section 7. Improvements
to Premises. Add to Exhibit B: SBG will be allotted $15 per
square foot of the rentable square feet as Tenant improvements. Beaver Dam LLC
will provide a ceiling. The ceiling will be 2x2 or 2x4 grids which will be
provided above and beyond the $15 per sq. ft. Tenant improvement allowance.
This ceiling will be provided at no cost to SBG. All other improvements to the
space will be at the expense of SBG. The contractor chosen for improvements to
premises shall be approved by Beaver Dam, LLC.

 

Section 9. Covenants to
Landlord. Normal business hours will be 8:00 A.M.–6:00 P.M.
Monday-Friday, 9:00 A.M.-1:00 P.M., Saturday, no holidays or Sundays.

 

Section 10. Covenants of
Tenant. If allowed by law, signage will be present on the
parking lot as well as first floor lobby directory. At this time, it is the
intent of Beaver Dam LLC to place an external sign fixed to the building which
will read “Sinclair”.

 

Section 11. Assignment
and Subletting. The Tenant will have the right to assign
their lease to the purchaser of the Tenant’s business. The purchase of said
business will have the identical responsibilities to the Landlord as did the
Tenant/seller of the business. Assignee must have a net worth equal to or
greater that that of the Tenant as of the Lease Commencement Date and as of the
effective date of the proposed assignment or subletting.

 

Section 21. Allocation of
Tenant. Delete section.

 

Exhibit C. Provision
regarding additional rent and adjustment to fix rent. As a
point of clarification, the baseline for operating expenses will be established
during the first year of the Tenant’s lease. This will be covered by the Tenant’s
sq. ft. cost. However, at the beginning of the second year of the lease, any
increases in costs above the Year 1 baseline related to items under Exhibit “C”
will be paid by the Tenant’s on a pro-rata per sq. ft. share.

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

15

 

EXHIBIT “A”

 

DEMISED PREMISES

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

EXHIBIT “B”

 

SPECIAL STIPULATIONS

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

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 2000.

 

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:

 

1.                                       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;

 

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.

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

C-1

 

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 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.                                      “Tenants’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                                 Commencing
on May 1, 2000, Tenant shall pay during the 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 (l/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.

 

C-2

 

2.3                                 Landlord
shall, as soon as possible after the close 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.

 

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.

 

C-3

 

EXHIBIT “D”

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

 

EXHIBIT “E”

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 judgement 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 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 Lessor 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

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

E-1

 

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 judgement, 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.

 

E-2

 

EXHIBIT “F”

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE AGREEMENT

 

THIS AGREEMENT, made as
of the                      day
of                         ,
200  , 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                          ,
200  , (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 request to confirm
said subordination by the Tenant.

 

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

 

	
  Please Initial:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ F.S.

  	
   

  	
  /s/ D.A.

  	
   

  
	
  Landlord

  	
   

  	
  Tenant

  

 

F-1

 

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 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 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 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 (a) 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.

 

F-2

 

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 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 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 Commonwealth of
Pennsylvania.

 

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.

 

F-3

 

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:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT: Sinclair Broadcast Group, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David B. Amy

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  David B. Amy

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONSENT

  
					

 

The undersigned consents to the foregoing.

 

 

	
   

  	
  LANDLORD:

  BEAVER DAM LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Frederick Smith

  	
   

  

 

F-4

 

EXHIBIT “G”

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
              ,
200  .  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 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 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:

  	
   

  	
  ,

  	
  200

  	
   

  	
   

  
										

 

G-1

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