Document:

Exhibit 10.21

 

LEASE

 

This Lease is made as of the 27 day of April,
2006, by and between
ARBUTUS SHOPPING CENTER LIMITED PARTNERSHIP, with an office c/o AmCap,
Incorporated, 1281 E. Main Street, Stamford, CT 06902 (“Landlord”) and
CARROLLTON BANK, a commercial banking institution organized and existing under
the laws of the state of Maryland, having an address at 344 North Charles
Street, Suite 300, Baltimore, MD 21201 (“Tenant”).

 

ARTICLE 1.   FUNDAMENTAL LEASE
PROVISIONS

 

Section 1.1             Fundamental Lease Provisions. 
The fundamental provisions of this Lease (the “Fundamental Lease
Provisions”) are as follows:

 

Shopping Center:         The premises (including land and buildings thereon and
any extensions thereof or additions thereto) generally known as the Arbutus Shopping
Center on Maiden Choice Lane in Arbutus, Maryland.

 

Tenant’s Trade
Name:                         CARROLLTON BANK

 

Leased Premises:          Those premises located in the Shopping Center,
currently consisting of the Ground Leased Premises together with Tenant’s
improvements constructed thereon as well as the In-Line Leased Premises
(collectively, the Leased Premises) crosshatched on Exhibit A attached
hereto and made part hereof.

 

Square Footage:           Approximately 8,436 square feet total

 

Permitted Use:             Said Leased Premises are leased only for the conduct
and operation of a commercial bank with drive-through facilities, and for no
other uses or purposes.

 

Lease Commencement
Date:   May 1, 2006

 

Rent Commencement
Date:   May 1, 2006

 

Lease Term:          The Lease Commencement Date through the Lease
Termination Date.

 

Extension Option:                Four (4) five-year periods (see Addendum)

 

Lease Termination Date:                     April 30, 2011

 

Lease Year:           The first Lease Year shall commence on the Lease
Commencement Date and shall end on April 30, 2007, and each succeeding Lease
Year shall run concurrently with each succeeding period of twelve (12) months
of the term of the Lease.

 

 

	
  Minimum Rent:

  	
   

  	
  Monthly Installment

  	
   

  
	
  5/1/06-4/30/07:

  	
   

  	
  $

  	
  210,900.00

  	
   

  	
  $

  	
  17,575.00

  	
   

  
	
  5/1/07-4/30/08:

  	
   

  	
  $

  	
  217,227.00

  	
   

  	
  $

  	
  18,102.25

  	
   

  
	
  5/1/08-4/30/09:

  	
   

  	
  $

  	
  223,743.81

  	
   

  	
  $

  	
  18,645.32

  	
   

  
	
  5/1/09-4/30/10:

  	
   

  	
  $

  	
  230,456.12

  	
   

  	
  $

  	
  19,204.68

  	
   

  
	
  5/1/10-4/30/11:

  	
   

  	
  $

  	
  237,369.81

  	
   

  	
  $

  	
  19,780.82

  	
   

  

 

	
  Percentage Rent Rate:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Security Deposit:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Promotion Charge Rate:

  	
   

  	
  None

  

 

Broker:   AmCap, Inc.

 

Section 1.2             Effect of Reference to Fundamental Lease
Provisions.  Each reference in this Lease to any of the
Fundamental Lease Provisions shall be construed to incorporate all of the terms
provided under each such Fundamental Lease Provision.

 

ARTICLE 2.   PREMISES AND TERM

 

Section 2.1             Lease of Leased Premises. 
Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, the Leased Premises which shall include a non-exclusive license to
use the common areas of the Shopping Center (the “Leased Premises”).

 

Section 2.2             Term.  The term of
this Lease shall be the Lease Term.

 

ARTICLE 3.   RENT

 

Section 3.1             Minimum Rent. 
Tenant shall pay to Landlord the Minimum Rent due for each Lease Year,
without notice, demand, setoff or deduction, in equal monthly installments, in
advance, on the first day of each and every month of the Lease Term commencing
on the Rent Commencement Date. If the Lease Term shall commence on a date other
than the first day of the month, or expire on a date other than the last day of
the month, the Minimum Rent shall be prorated for such fraction of a month
based on the actual number of days in such month.

 

Section 3.2             Additional Rent.  All payments
and charges of any nature whatsoever due from Tenant under the terms of this
Lease, including, without limitation, all payments to be made pursuant to
Articles 3, 4, 5 and 6 hereof, shall be considered to be additional rent due
hereunder.

 

ARTICLE 4.   NET LEASE

 

Section 4.1             Net Lease.  This is
intended to be a net lease, so that all Minimum Rent and additional rent
provided for herein shall be received by Landlord free and clear of any
offsetting costs or expenses relating to the Shopping Center, whether capital
in nature or not, except as set forth in Section 4.2.  Accordingly, Tenant shall be responsible for
and obligated to pay Tenant’s Share of all costs and expenses incurred by or

 

2

 

on behalf of
Landlord in connection with the ownership and operation of the Shopping Center,
excluding only those costs set forth in Section 4.2.

 

Section 4.2             Landlord’s Costs. 
Tenant shall not be responsible for certain income taxes expressly
excluded from Tenant’s responsibility in Section 5.2, the cost of
construction of new building areas, the cost of initial improvements to
premises leased to tenants of the Shopping Center other than Tenant, leasing
commissions, ground rent and debt service payable under any Mortgage (as
hereinafter defined).

 

ARTICLE 5.   REAL ESTATE TAXES

 

Section 5.1             Tenant’s Payments. 
Tenant shall pay to Landlord, as additional rent, Tenant’s Share (as
defined in Section 6.1) of all Real Estate Taxes (as defined below).

 

Section 5.2             Definition of Real Estate Taxes. 
“Real Estate Taxes” shall mean all real estate taxes, assessments, water
and sewer rents (except water meter charges and sewage charges based on usage)
and other governmental impositions and charges of every kind and nature
whatsoever, extraordinary as well as ordinary, general and special, foreseen
and unforeseen, including those for public improvements or otherwise, which
shall or may, during the Lease Term, be assessed against, levied or imposed
upon, become a lien upon, or become due and payable in connection with the
ownership, use, occupancy or possession of the Shopping Center or any part
thereof and any expenditure incurred by Landlord in the contest or protest of
any Real Estate Tax or assessed valuation, when incurred.  Real Estate Taxes shall not include any
inheritance, estate, succession, transfer, gift, franchise, corporation, or
income or profit tax that is or may be imposed upon Landlord; provided,
however, that if, at any time after the date hereof, the methods of taxation
shall be altered so that, in lieu of, or as a substitute for, or in addition
to, the whole or any part of the taxes now levied, assessed or imposed on real
estate as such, there shall be levied, assessed or imposed (i) a tax on
the rents received from such real estate, or (ii) a license fee measured
by the rents receivable by Landlord from the Shopping Center or any portion
thereof, or (iii) a tax, license fee or other charge imposed upon Landlord
which is otherwise measured by or based in whole or in part upon the Shopping
Center or any portion thereof, or (iv) if an income or franchise tax is
imposed upon Landlord in addition to the taxes now levied, assessed or imposed
on real estate, then the same shall be included in the computation of Real
Estate Taxes, provided the Shopping Center is the only property of Landlord
subject to such tax or fee.

 

Section 5.3             Estimated Tax Payments. 
On each date that an installment of Minimum Rent is due, Tenant shall
pay to Landlord an amount equal to 1/12 of Tenant’s Share of the estimated Real
Estate Taxes (as determined by Landlord) next due for the Shopping Center (or such
other fraction as Landlord determines to be needed) to assure that prior to the
due date of Real Estate Taxes due for the Shopping Center Landlord shall have
received from Tenant funds sufficient to pay Tenant’s Share in full.  Landlord shall provide Tenant with a copy of
each tax bill for the Shopping Center and a statement setting forth the amount
due from Tenant as Tenant’s Share.  If
the amount due from Tenant exceeds the amount of the estimated payments collected
from Tenant, Tenant shall pay the difference to

 

3

 

Landlord within ten (10) days
of the receipt of such statement. If the amount of estimated payments exceeds
the amount due, Landlord shall credit such difference to the next installment
or installments of estimated payments due under this Section.  If the Lease Term shall commence or expire on
a date other than the fiscal year end for any such tax, Tenant’s Share for such
fraction of a fiscal year shall be prorated.

 

Section 5.4             Right to Contest Real Estate Taxes. Landlord shall be under no duty or
obligation whatsoever to protest or contest any assessed valuation or Real
Estate Tax assessed against the Shopping Center or the Leased Premises.  If Landlord shall elect to contest any
assessed valuation or Real Estate Tax, no such contest by Landlord shall give
Tenant the right to withhold or reduce any payment or estimated payment of Real
Estate Taxes due under this Lease.  If
Landlord shall receive a refund of Real Estate Taxes for which Tenant has paid
Tenant’s Tax Payment, Tenant shall receive its prorata share thereof after
deducting all costs, fees and expenses incurred by Landlord in connection with
obtaining such refund, and not previously charged to Tenant.  Tenant shall have no right whatsoever to
protest or contest any assessed valuation or Real Estate Tax assessed against
the Shopping Center or the Leased Premises.

 

ARTICLE 6.   COMMON CHARGES

 

Section 6.1             Tenant’s Payments. 
Tenant shall pay to Landlord as additional rent the fraction represented
by the Square Footage of the Leased Premises (8,436 square feet on the Rent
Commencement Date) divided by the total first floor leasable square footage in
the Shopping Center (91,434 square feet as of the Rent Commencement Date) as
determined by Landlord from time to time (“Tenant’s Share”) of all Common
Charges (as defined below).

 

Section 6.2             Definition of Common Charges. 
“Common Charges” shall mean all costs and expenses incurred by Landlord
or Landlord’s employees, agents or contractors, either pursuant to this Lease
or otherwise, arising from or in connection with or as a result of the
operating, equipping, policing, protecting, lighting, providing sanitation,
sewer and other services, insuring, maintaining, repairing and replacing the
Common Areas (as hereinafter defined), all buildings and improvements within
the Shopping Center and all other areas and facilities of the Shopping
Center.  Common Charges shall include,
but shall not be limited to:  (i) the
maintenance, repair and replacement of all roofs, exterior walls and other
structural and exterior portions of the Shopping Center, curbs, gutters,
sidewalks, pylons and signs, drainage and irrigation ditches, conduits and
pipes, utility systems (permanent and temporary), sewage disposal or treatment
systems, public toilets and sound systems whether within or without the
Shopping Center; (ii) the removal of trash, snow and ice; (iii) landscaping;
(iv) supplies; (v) licensing, permits, service and usage charges; (vi) obtaining
and maintaining the insurance policies described in Section 10.3 of this
Lease and the cost of any insured event deductible amounts under such policies;
(vii) the settlement or disposition of any claims against Landlord to the
extent the same are not covered by insurance; (viii) all capital
expenditures together with reserves for capital improvements required by the
holder of any Mortgage; (ix) the repaving, restriping, regrading and
general maintenance of parking areas;

 

4

 

(x)  compliance
with all rules, regulations and orders of governmental authorities pertaining
to the Shopping Center, including those pertaining to traffic control,
engineering and environmental issues, air pollution control and the cost of
monitoring air quality; (xi) (intentionally deleted); (xiii) licensing and
permit fees and taxes; (xiv) audit fees and expenses and other costs and
expenses of enforcing the rules and regulations established by Landlord
for the Shopping Center; (xv) the cost, lease payment or depreciation of any
equipment used in the operation or maintenance of the Shopping Center; (xvi)
total compensation and benefits (including premiums for workers’ compensation
or any other insurance or other retirement or employee benefits, and including
all costs incurred in providing such benefits) paid to or on behalf of
employees involved in the performance of the work specified in this Section or
employees otherwise providing services to tenants or customers of the Shopping
Center whether on or off site; (xvii) the maintenance, repair and operation of
any mall or enclosed common area; (xviii) the costs of performance of all of
Landlord’s obligations pursuant to this Lease or as contemplated herein except
those costs set forth in Section 4.2; (xix) other costs and expenses
incurred in connection with the operation and management of the Shopping
Center; plus (xx) an amount equal to fifteen percent (15%) of all of the
foregoing costs and expenses to compensate Landlord for administrative and
overhead expenses. Common Charges shall include costs and expenses for
services, equipment or materials furnished by Landlord or its affiliates,
including management fees, provided the same are furnished at rates similar to
those generally paid.

 

Section 6.3             Estimated Payments. 
On each date that an installment of Minimum Rent is due, Tenant shall
pay to Landlord an amount equal to 1/12 of the estimated Common Charges (as
determined by Landlord) for the calendar year in which such payment is
made.  On or before March 1 of each
year, Landlord shall provide Tenant with a statement setting forth Tenant’s
Share for the preceding calendar year and the amount of estimated Common
Charges paid by Tenant during such year. 
If the amount due from Tenant exceeds the amount of the estimated
payments, Tenant shall pay the difference to Landlord within ten (10) days
of the receipt of such statement.  If the
amount of estimated payments exceeds the amount due, Landlord shall credit such
difference to the next installment or installments of estimated payments due
under this Section.  Landlord’s failure
to provide such statement by the date provided under this Section shall in
no way excuse Tenant from its obligation to pay Tenant’s Share of the Common
Charges or constitute a waiver of Landlord’s right to bill and collect Tenant’s
Share of Common Charges from Tenant in accordance with this Section.  If the term of the Lease shall commence on a
day other than January 1 or expire on a day other than December 31,
Common Charges due from Tenant for such fraction of a calendar year shall be
prorated. During any year, Landlord, from time to time, may revise its estimate
of the Common Charges which will be due for that year and the monthly payments
to be made by Tenant on account thereof.

 

ARTICLE 7.   USE OF PREMISES

 

Section 7.1             Permitted Use. 
The Leased Premises shall be occupied and used by Tenant solely for the
Permitted Use and for no other use or purpose.

 

5

 

Section 7.2             Operation of the Leased Premises. 
Tenant shall use, occupy and operate the entire Leased Premises
continuously and without interruption during the Lease Term, shall not abandon
or vacate the Leased Premises, shall not permit, license, or suffer the
occupancy of any other party in the Leased Premises and shall:

 

a.             Keep the Leased Premises open for
business continuously and without interruption at least from 9:00 a.m. to 5:00 p.m.
Monday through Friday and 9:00 a.m. to 12:00 p.m. Saturday, or such
other hours as Landlord may reasonably designate, unless prohibited by
applicable laws or regulations;

 

b.             Operate its business as a financial
institution in a manner as will enhance the Shopping Center;

 

c.             (intentionally deleted);

 

d.             Erect no displays outside the Leased
Premises or in any way obstruct the Common Areas;

 

e.             Load or unload all supplies, fixtures,
equipment and furniture and cause the collection of rubbish only through the
rear service door or doors of the Leased Premises;

 

f.              Keep the Leased Premises in a safe, clean
and proper manner; and not permit any rubbish or refuse of any nature to
accumulate in the Common Areas;

 

g.             Keep the Leased Premises free from
vermin;

 

h.             Prevent the Leased Premises from being
used in any way which will injure the reputation of the same or of the Shopping
Center or from being used in any way which may be a nuisance, annoyance,
inconvenience or damage to the other tenants or occupants of the Shopping
Center, including, without limitation, noise by the playing of any musical
instrument or radio or television or the use of a microphone, loud speaker,
electrical equipment or other equipment which may be heard outside the Leased
Premises;

 

i.              Not violate the exclusive covenants of
any other tenant in the Shopping Center; and

 

j.              Abide by all rules and regulations
established by Landlord, from time to time, with respect to the Common Areas,
the Shopping Center, and the operation of the Leased Premises.

 

Section 7.3             Radius Restriction. 
(intentionally deleted).

 

Section 7.4             Compliance with Laws.  Tenant
shall not use or occupy or suffer or permit the Leased Premises or any part
thereof to be used or occupied for any purpose contrary to law or the rules or
regulations of any public authority or the requirements of any insurance
underwriters or rating bureaus or in any manner so as to increase the cost of
insurance over and above the normal cost of such insurance for the Permitted
Use for the type and location of the building of which the Leased Premises are
a part.  Tenant shall promptly obtain all
permits and licenses required by and otherwise comply with all present and
future laws (including Environmental Laws as defined in Section 32.4),
regulations or rules of any local, county, state,

 

6

 

federal and other
governmental authority and any bureau or department thereof, and of the
National Board of Fire Underwriters or any other body exercising a similar
function which may be applicable to the Leased Premises or Shopping Center,
including the maintenance, service, repair, replacement and disposal of any
structure, equipment or system thereon. 
If Tenant shall install any electrical equipment that overloads the
lines in the Leased Premises, or handle any Hazardous Substances (as defined in
Section 32.4), Tenant shall, at Landlord’s option, immediately terminate
the use of such electrical equipment or Hazardous Substances or, at Tenant’s
expense, make such changes as Landlord may request to prevent such overload or
hazard or otherwise and as may be necessary to comply with the requirements of
any insurance underwriters and governmental authorities having jurisdiction.

 

ARTICLE 8.   ALTERATIONS

 

Section 8.1             Landlord’s Consent Required. 
Tenant shall not make or permit to be made any alterations, improvements
or additions of any kind or nature (excluding interior repainting, recarpeting
or other normal interior decorative changes) to the Leased Premises or any part
thereof except by and with the prior written consent of Landlord.  Plans and specifications for all desired
work, [including Tenant’s Construction associated with Tenant’s downsizing],
shall be submitted by Tenant to Landlord for Landlord’s approval prior to the
commencement of any work.  The actual
out-of-pocket cost of Landlord’s review shall be paid by Tenant within ten (10) days
of receipt of Landlord’s statement therefor. Landlord’s approval of the plans,
specifications and/or working drawings for Tenant’s alterations or improvements
shall create no responsibility or liability on the part of Landlord for their
completeness, design sufficiency, or compliance with all laws, rules and
regulations of governmental agencies or authorities.

 

Section 8.2             Compliance with Law, Ownership and
Indemnification.  All alterations, improvements and additions
to the Leased Premises shall be made in compliance with all applicable laws
(including Environmental Laws) and governmental requirements and when made or
installed shall be deemed to have attached to the real property and to have
become the property of Landlord and shall remain for the benefit of Landlord at
the end of the Lease Term, or other expiration of this Lease, in as good order
and condition as they were when installed, reasonable wear and tear excepted;
provided, however, that if, prior to the termination of this Lease, or within
fifteen (15) days thereafter, Landlord so directs, Tenant shall promptly and in
compliance with all applicable laws (including Environmental Laws), remove, and
if necessary dispose of, the additions, improvements, fixtures and installations
which were placed in the Leased Premises by Tenant including Tenant’s vault and
which are designated in such notice, and repair any damage occasioned by such
removal, and, in default thereof, Landlord may effect such removals and repairs
at Tenant’s expense.  In the event Tenant
undertakes any alterations, improvements or additions as herein provided,
Tenant shall indemnify and save Landlord harmless from and against all costs,
expenses, liens, claims or damages (including attorneys’ fees) to either
persons or property arising out of or resulting from the undertaking or making
of such alterations, additions and improvements, including without limitation
any costs or expenses to comply with The Americans With Disabilities Act and
the Regulations

 

7

 

thereunder, and Tenant
shall provide Landlord with evidence of workmen’s compensation insurance and
such other insurance as Landlord may reasonably request.

 

ARTICLE 9.   REPAIRS AND MAINTENANCE

 

Section 9.1             Landlord’s Obligations.  (a) In-Line
Leased Premises:  Landlord shall keep and
maintain the structural portions of the Leased Premises and the exterior area,
including, but not limited to, the roof, foundation and exterior walls of the
Leased Premises, except with respect to any damage thereto caused by any
alterations or installations by Tenant or any act or negligence of Tenant, its
employees, agents, invitees, licensees, subtenants, assignees or contractors or
otherwise arising out of Tenant’s use or occupancy of the Leased Premises, in
which event such damage shall be promptly repaired by Tenant.  Except as otherwise herein provided, Landlord
shall not be responsible for maintenance, repairs or improvement of any kind in
or upon the Leased Premises.

 

(b)           Ground Leased Premises:  Landlord shall not be responsible for
maintenance, repairs or improvements of any kind in or upon the Ground Leased
Premises or improvements thereon.

 

Section 9.2             Tenant’s Obligations.  (a) 
In-Line Leased Premises:  Tenant accepts
the Leased Premises “as is”. Landlord has made no representation, warranty or
other assurance with respect to the Leased Premises or the Shopping Center.
Tenant shall keep and maintain the Leased Premises and every part thereof
(excluding only the structural elements and the roof unless repair of same
arises out of Tenant’s use or occupancy of the Leased Premises or negligence as
described in Section 9.1) in good order, condition and repair, in
compliance with Environmental Laws, as defined in Section 32.4, including,
without limitation, the exterior and interior portions of all doors, door
checks, security gates, windows and glass, all utility, plumbing and sewage
facilities within the Leased Premises or under the floor slab thereof,
fixtures, heating and air-conditioning equipment, exterior mechanical
equipment, exterior utility facilities and exterior electrical equipment
serving the Leased Premises and interior walls, floors and ceilings, and
including compliance with applicable building and fire codes relative to fire
extinguishers, sprinkler systems and other preservative measures.  Tenant shall conduct all such maintenance,
service, repair, replacement and disposal activities, including those with
respect to any structure, equipment or system, in compliance with applicable
laws, including Environmental Laws.  As
part of its HVAC maintenance obligation, Tenant shall enter into an annual
contract with an HVAC repair firm, fully licensed to repair HVAC units in the
state in which the Shopping Center is located and approved by Landlord, which
firm shall (a) regularly service the HVAC unit(s) on the Leased
Premises on no less than a quarterly basis, changing belts, filters and other
parts as required; (b) perform emergency and extraordinary repairs on the
HVAC unit(s); and (c) keep a detailed record of all services performed on
the Leased Premises and prepare a yearly service report to be furnished to the
Tenant at the end of each calendar year. Tenant shall furnish to Landlord, at
the end of each calendar year, a copy of the HVAC maintenance contract and
report described above, and proof that the annual premium for the maintenance
contract has been paid.  Nothing stated
herein shall

 

8

 

limit Tenant’s obligation to maintain the HVAC unit(s) in good
condition and repair throughout the term of this Lease.  If Tenant fails or refuses to comply with its
obligations in this Section 9.2, Landlord may (but shall not be required
to) make or complete such repairs and Tenant shall pay the cost thereof to
Landlord upon demand.

 

(b)           Ground Leased
Premises:  Tenant shall keep and maintain
its parking area, drive-through lanes and all other portions of the Leased
Premises including all improvements constructed thereon and every part
thereof  in good order, condition and
repair (normal wear and tear excepted), in compliance with “Environmental
Laws”, as defined in Section 32.4, including, without limitation, the roof
and structural portions of the building, sidewalks and passageways, exterior
and interior portions of all doors, door checks, security gates, windows and
glass, all utility, plumbing and sewage facilities within the Leased Premises
or under the floor slab thereof, fixtures, heating and air-conditioning
equipment, exterior mechanical equipment, exterior utility facilities and
exterior electrical equipment serving the Leased Premises and interior walls,
floors and ceilings, and including compliance with applicable building and fire
codes relative to fire extinguishers, sprinkler systems and other preservative
measures.  Tenant shall conduct all such
maintenance, service, repair, replacement and disposal activities, including
those with respect to any structure, equipment or system, in compliance with
applicable laws, including Environmental Laws.

 

ARTICLE 10.  INSURANCE

 

Section 10.1           Tenant’s
Obligation.  During the
Lease Term, Tenant, at its own expense, shall maintain the following:

 

(a)           a commercial general liability insurance policy
relating to the Leased Premises providing for coverage of at least Two Million
Dollars ($2,000,000) with respect to injury or death and property damage
combined;

 

(b)           (i)   In-Line Leased Premises:  special form property insurance, including
theft and, if applicable, boiler and machinery coverage, written at replacement
cost value in an adequate amount to avoid coinsurance and a replacement cost
endorsement insuring Tenant’s furnishings, equipment and all items of personal
property of Tenant and including property of Tenant’s customers located in the
Leased Premises;

 

(ii)   Ground Leased Premises and the improvements
thereon:  “all risk” property insurance
(with extended coverage and such other coverage as Landlord may reasonably
designate) insuring the improvements constructed by Tenant upon the Leased
Premises and all fixtures and equipment, including personal property, thereon
to ninety percent (90%) of their actual replacement value without deduction for
physical depreciation, having a deductible of not more than $10,000;

 

(c)           workers’ compensation coverage as required by law;

 

(d)           with respect to alterations, improvements and the
like required or permitted to be made by Tenant hereunder, contingent liability
and builder’s risk insurance, in amounts reasonably satisfactory to Landlord;

 

9

 

(e)           (intentionally deleted)

 

(f)            plate glass insurance covering the glass in the
Leased Premises for which Tenant shall be entitled to self-insure;

 

(g)           flood insurance if applicable; and

 

(h)           such other insurance covering such other insurable
risks as Landlord deems reasonably necessary.

 

Section 10.2           Requirements of Policy.  The insurance policies required by Section 10.1
shall be issued by a company and in a form satisfactory to Landlord and may not
be cancelable without thirty (30) days’ written notice to Landlord.  Tenant shall deliver to Landlord the original
of such policy, or a certificate evidencing such policy, prior to the
commencement of the Lease Term and, thereafter, at least thirty (30) days prior
to the expiration of each policy.  Each
policy or certificate shall be accompanied by proof of payment of such policy.
Provided Landlord has furnished Tenant with names and addresses of the same,
each policy required under this Article shall name Landlord, Landlord’s
agents, the holder of any Mortgage and any other party with an interest in the
Shopping Center as an insured as their interests may appear.  Any required insurance may be effected by a
policy of blanket insurance covering additional items or locations provided
however that (i) the coverage afforded Landlord and any other parties in
interest will not be reduced or diminished by reason of the use of such blanket
policy of insurance; (ii) any such policy shall specify therein (or Tenant
shall furnish Landlord with a written statement from the insurer under such
policy specifying) the amount of the insurance allocated to the Leased
Premises; and (iii) all other requirements set forth herein are otherwise
satisfied.

 

Section 10.3           Shopping Center
Insurance.  Landlord
shall maintain, if available at standard rates, such availability to be
determined solely by Landlord, the following:

 

(a)           fire insurance
(with extended coverage and such other coverage as Landlord may choose)
insuring the Shopping Center and all fixtures and improvements thereon to their
full insurable value;

 

(b)           rent insurance
covering the risks described in paragraph (a) above in an amount equal to
all Minimum Rent, Percentage Rent (as estimated by Landlord) and additional
rent due under all leases relating to the Shopping Center for a period of at
least one year;

 

(c)           comprehensive
general public liability insurance against any claims upon Landlord arising
from the ownership, operation or control of the Shopping Center with respect to
bodily injury, death, property damage or other risks of similar nature with
combined limits as Landlord deems appropriate, but in no event less than Five
Million Dollars ($5,000,000); and

 

(d)           any such insurance coverage, in addition to or in
substitution for the coverage set forth above, as the holder of any Mortgage
may require or as Landlord may otherwise determine.

 

10

 

Section 10.4           Policy Limits. 
The coverage limits of all insurance policies referred to in this Lease,
in the discretion of Landlord or the holder of any Mortgage, may be increased
at any time during the Lease Term.

 

Section 10.5           Waiver of Subrogation. 
Landlord and Tenant hereby mutually waive any rights they may have
against each other to recover for loss or damage to property arising from a
casualty insured against hereunder or which is required to be insured against
hereunder.  In addition, all insurance
policies carried by Landlord or Tenant covering the Leased Premises shall
expressly waive any right on the part of the insurer against the other party
for damage to or destruction of the Leased Premises resulting from the acts,
omissions or negligence of the other party.

 

ARTICLE 11.   TENANTS’ ASSOCIATION AND
PROMOTION

(intentionally deleted)

 

ARTICLE 12.   COMMON AREAS

 

Section 12.1           Definition.  “Common
Areas” shall mean all sidewalks, parking lots, driveways, landscaped areas,
loading areas, service areas, pedestrian malls and other areas at the Shopping
Center which may, from time to time, be provided by Landlord for general use.

 

Section 12.2           Tenant’s Use. 
Landlord hereby grants to Tenant during the Lease Term a nonexclusive
license to use the Common Areas.  The
Common Areas shall be subject to the exclusive control and management of
Landlord and to such rules and regulations as Landlord may, from time to
time, establish, and Landlord reserves the right to make such changes,
additions, deletions, alterations or improvements in and to such Common Areas,
as Landlord deems desirable, provided that there shall be no permanent and
material obstruction of Tenant’s right of ingress to or egress from the Leased
Premises.

 

Section 12.3           Maintenance. 
Landlord shall maintain the Common Areas in good repair, reasonably
clear of debris and lighted and open during business hours.

 

Section 12.4           Kiosks.  Landlord
reserves the right to construct and sublease non-financial kiosks and sales
areas on any portion of the enclosed mall, if any, or other parts of the Common
Area of the Shopping Center.

 

ARTICLE 13.   DAMAGE OR DESTRUCTION

 

Section 13.1           Landlord’s Obligation. 
If all or any part of the Shopping Center is damaged or destroyed by
fire or other casualty insured under the hazard policy maintained by Landlord,
Landlord shall, to the extent that insurance proceeds are available therefor,
and except as otherwise provided herein, repair or rebuild the structural
portions of the Shopping Center with reasonable diligence.  Landlord shall have no obligation to repair
or rebuild any property belonging to Tenant.

 

Section 13.2           Abatement.  If, as a
result of the damage or destruction referred to in Section 13.1, there is
a substantial interference with the operation of Tenant’s business which
requires Tenant to cease doing business at the In-Line Leased Premises, then
the Minimum Rent and additional rent

 

11

 

payable hereunder shall
abate in accordance with the square footage of In-Line Leased Premises so
affected.  However, if Tenant has not
been able to reopen for business after six (6) months from the date of the
damage or destruction, Tenant may, upon thirty (30) days’ written notice,
cancel this Lease and have no further obligations to Landlord hereunder.

 

Section 13.3           Tenant’s Obligations.  (a) 
Unless this Lease is terminated as provided below, Tenant, upon any damage or
destruction to the In-Line Leased Premises, and subject to Landlord’s
requirement to rebuild as set forth in Section 13.1, promptly shall
repair, rebuild and redecorate such Leased Premises in a manner at least equal
in quality to that existing prior to such damage or destruction.

 

(b)  Unless
this Lease is terminated as provided below, Tenant, upon any damage or
destruction to the Ground Leased Premises or the improvements thereon,  promptly shall rebuild, repair, rebuild and
redecorate such Leased Premises in a manner at least equal in quality to that
existing prior to such damage or destruction. 
There shall no be abatement of Minimum Rent or additional rent while
Tenant rebuilds or repairs the improvements on the Ground Leased Premises

 

Section 13.4           Termination. 
Notwithstanding anything which may be contained in this Article 13
to the contrary, Landlord, at its option, may terminate this Lease on thirty
(30) days’ written notice to Tenant given within ninety (90) days after the
occurrence of any damage or destruction to the Shopping Center or any portion
thereof if (i) such damage or destruction resulted from a risk not covered
by Landlord’s insurance or covered in a manner which fails to yield proceeds in
an amount equal to Landlord’s estimated cost of repair, or (ii) the
portion of the Leased Premises which Landlord is required to repair is damaged
and the estimated cost to repair such damage is more than twenty-five (25%)
percent of the replacement cost of the Leased Premises, or (iii) the
Shopping Center is damaged and the cost to repair such damage is more than
twenty-five (25%) percent of the replacement cost of the entire Shopping
Center.

 

ARTICLE 14.   EMINENT DOMAIN

 

Section 14.1           Condemnation of Entire Leased Premises. If all or substantially all of the
In-Line Leased Premises or the Ground Leased Premises shall be taken by
condemnation or by transfer in lieu thereof, then this Lease shall terminate as
of the date title is vested in the condemning authority.

 

Section 14.2           Partial Condemnation of the Leased
Premises.  If less than all or substantially all of the
Leased Premises is taken by condemnation or private purchase in lieu thereof,
then, if the remainder of the Leased Premises not so taken is determined by
Landlord to be unusable for the purposes for which such Premises were leased,
either Landlord or Tenant may terminate this Lease upon thirty (30) days’
written notice to the other, which notice must be given within thirty (30) days
after such taking.

 

Section 14.3           Condemnation of Shopping Center. 
If proceedings are commenced to take any portion of the Shopping Center
by condemnation or by private transfer in lieu thereof, and Landlord, in its
sole discretion, elects to discontinue the

 

12

 

operation of the Shopping
Center or the portion thereof in which the Leased Premises are located as a
shopping center, then Landlord may terminate this Lease upon thirty (30) days’
notice to Tenant.

 

Section 14.4           Rentals Upon Condemnation. 
If this Lease is terminated pursuant to any provision of this Article,
then the Minimum Rent and all additional rent and charges payable hereunder
shall be prorated as of the date of such termination.  If, upon partial condemnation as provided in Section 14.2,
this Lease is not terminated, the Minimum Rent, additional rent and all other
charges shall be equitably adjusted.  Tenant
shall continue to make all payments of Minimum Rent and additional rent, as
heretofore provided, until the adjusted rent is agreed upon, whereupon Landlord
and Tenant shall settle any excess rent or shortfall.

 

Section 14.5           Proceeds of Condemnation.  Landlord shall be entitled to the entire
proceeds of any and all awards made as a result of any condemnation affecting
the Shopping Center and the proceeds of any private purchase or transfer in
lieu of such condemnation.  Tenant shall
not be entitled to any award or proceeds as a result of any value attributable
to Tenant’s interest in this Lease or the unexpired portion of the Lease
Term.  However, in the event that the
condemning authority shall entertain such claim, Tenant shall have the right to
prosecute a claim directly against the condemning authority for its trade
fixtures and relocation costs, provided that no such claim shall diminish or
otherwise adversely affect Landlord’s claims and the claims of any mortgagees,
ground lessors or owners of any interest in the Shopping Center.

 

ARTICLE 15.   ASSIGNMENT AND SUBLETTING

 

Section 15.1           Consent Required. 
Tenant shall not, voluntarily, involuntarily or by operation of law,
assign, pledge or encumber this Lease or any interest of Tenant herein, in whole
or in part, or sublet the whole or any part of the Leased Premises, or permit
any other persons to occupy the Leased Premises, without the prior written
consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed.  Notwithstanding
the foregoing, Tenant may assign this Lease and the right to occupy the Leased
Premises to any entity controlling, controlled by or under common control with
Tenant or into which Tenant may be merged, without the prior written consent of
Landlord. The acceptance of rent from any person other than Tenant shall not be
deemed to be a waiver of any of the provisions of this Lease or to be a consent
to the assignment of this Lease or subletting of the Leased Premises.  The consent of Landlord in any instance to an
assignment or subletting shall not be deemed to be a consent, or a waiver of
the requirement for the Tenant to obtain consent, to any subsequent assignment
or subletting.

 

Section 15.2           Corporation or Other Entity. 
Tenant may, at any time, without the consent of the Landlord, assign or
otherwise transfer this Lease or any portion thereof to a parent, subsidiary,
or affiliate corporation or entity; or any corporation or entity resulting from
the consolidation or merger of Tenant into or with any other entity; or to any
person, firm or corporation acquiring a majority of Tenant’s issued or
outstanding capital stock or a substantial part of the Tenant’s physical
assets; provided, however, that in the event of any

 

13

 

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

 

Section 15.3           Creditors.  An assignment
for the benefit of creditors or by operation of law shall not be effective to
transfer any rights to any assignee without the prior written consent of
Landlord.

 

Section 15.4           Permitted Assignment. 
Any subletting or assignment consented to by Landlord pursuant to this Article 15
shall be subject to and conditioned upon the following:  (i) at the time of any proposed
subletting or assignment, Tenant shall not be in default under any of the
terms, provisions or conditions of this Lease; (ii) the sublessee or
assignee shall occupy only the Leased Premises and conduct its business in
accordance with the Permitted Use; (iii) if the rents, charges or other
sums required to be paid by any such sublessee or assignee exceed the rents,
charges or other sums reserved hereunder, then Tenant shall pay to Landlord
monthly the entire amount of such excess, which shall be deemed additional
rent; (iv) prior to occupancy, Tenant and its assignee or sublessee shall
execute, acknowledge and deliver to Landlord a fully executed counterpart of a
written assignment of lease or sublease, as the case may be, by the terms of
which:  (x) in case of an
assignment, Tenant will assign to the assignee Tenant’s entire interest in this
Lease, together with all prepaid rents and security deposited hereunder, and
the assignee will accept said assignment and assume and agree to perform,
directly for the benefit of Landlord, all of the terms, covenants and
conditions of this Lease on the Tenant’s part to be performed; or (y) in
case of a subletting, the sublease in all respects will be subject and subordinate
to all of the terms, covenants and conditions of this Lease and the sublessee
thereunder will agree to be bound by and to perform all of the terms, covenants
and conditions of this Lease on the Tenant’s part to be performed; (v) in
the event of an assignment of this Lease or subletting of all or part of the
Leased Premises, Tenant shall, at its expense, comply with all requirements of
The Americans With Disabilities Act relating to the assignee or sublessee, as
the case may be, and its business; (vi) notwithstanding any such
assignment or subletting under the terms of this paragraph, Tenant will not be
released or discharged from any liability whatsoever under this Lease including
the liability for payment of Minimum Rent, additional rent and any other sums
reserved hereunder and will continue to be liable for all obligations of Tenant
set forth herein with the same force and effect as though no assignment or
sublease had been made and Tenant shall confirm same to Landlord; (vi) Tenant
shall pay to Landlord Landlord’s administrative costs, overhead and attorneys’
fees in connection with such assignment or subletting, which costs, overhead
and fees are now estimated at Five Hundred Dollars ($500); and (viii) such
other conditions as Landlord may impose.

 

ARTICLE 16.   UTILITIES

 

Section 16.1           Tenant’s Obligations. 
Tenant agrees to pay promptly, as and when the same become due and
payable, all water rents, rates and charges, all sewer rents and all charges
for electricity, gas, heat, steam, hot and chilled water and other utilities
supplied to the Leased Premises (whether prior to or during the Lease Term or
subsequent thereto if relating to

 

14

 

Tenant’s use of
the Leased Premises).  If any such
utilities are not separately metered or assessed or are only partially
separately metered or assessed and are used in common with other tenants of the
Shopping Center, Tenant will pay to Landlord, in addition to Tenant’s payments
of the separately metered charges, Tenant’s pro rata share of the cost of
utilities used in common with other tenants, based on the leasable square
footage of floor space leased to each tenant using such common facilities, or
such other basis as Landlord may reasonably determine.

 

Section 16.2           Meters.  If Landlord
shall so desire, Landlord shall install utility meters at the Leased Premises.
The costs incurred in the installation and maintenance of such meters shall be
paid by Tenant.  Further, Tenant shall
pay all charges for consumption directly to the proper public or private
utility company or government unit, promptly when due.

 

ARTICLE 17.   ESTOPPEL
CERTIFICATE,

ATTORNMENT AND
SUBORDINATION

 

Section 17.1           Estoppel.  Tenant
agrees, at any time and from time to time, as requested by Landlord or any
Lender (as hereinafter defined), upon not less than fifteen (15) days’ prior
notice, to execute and deliver without cost or expense to the Landlord or such
Lender an estoppel certificate certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that the same is in
full force and effect as modified and stating the modifications), certifying
the dates to which all fixed or minimum rent and any additional rent have been
paid, and stating whether or not, to the best knowledge of Tenant, Landlord is
in default in the performance of any of its obligations under this Lease, and,
if so, specifying each such default of which Tenant may have knowledge, it
being intended that any such statement delivered pursuant thereto may be relied
upon by any other person with whom Landlord or such Lender may be dealing.  Upon Tenant’s failure to timely deliver any
estoppel, at provided such failure continues after five (5) days written
notice, Tenant shall, in addition to any other remedy of Landlord, pay to
Landlord the amount of One Hundred Dollars ($100) per day for each day the same
remains undelivered.

 

Section 17.2           Notice to Lender and Right to Cure. Once Tenant has received written notice
identifying the name and address of any lender (a “Lender”) holding a mortgage
or deed of trust (a “Mortgage”) on the property of which these premises form a
part (the “Property”), Tenant agrees to notify such Lender by certified mail,
return receipt requested, with postage prepaid, of any default on the part of
Landlord under this Lease, and Tenant further agrees that, notwithstanding any
provisions of this Lease, no cancellation or termination of this Lease and no
abatement or reduction of the rent payable hereunder shall be effective unless
the Lender has received notice of the same and have failed within thirty (30)
days after the time when it shall have become entitled under the Mortgage to
remedy the same, to commence to cure such default and thereafter diligently
prosecute such cure to completion, provided that such period may be extended,
if the Lender needs to obtain possession of the Property to cure such default,
to allow the Lender to obtain possession of the Property provided the Lender
commences judicial or nonjudicial proceedings to obtain possession within such
period and thereafter diligently prosecutes such efforts and cure to
completion.  It is

 

15

 

understood that
the Lender shall have the right, but not the obligation, to cure any default on
the part of Landlord.

 

Tenant agrees that
if a Lender shall succeed to the interest of Landlord under this Lease, neither
the Lender nor its successors or assigns shall be:  liable for any prior act or omission of
Landlord; subject to any claims, offsets, credits or defenses which Tenant
might have against any prior landlord (including Landlord); or bound by any
assignment (except as otherwise expressly permitted hereunder), surrender,
release, waiver, amendment or modification of the Lease made without such
Lender’s prior written consent; or obligated to make any payment to Tenant or
liable for refund of all or any part of any security deposit or other prepaid
charge to Tenant held by Landlord for any purpose unless the Lender shall have
come into exclusive possession of such deposit or charge.  In addition, if a Lender shall succeed to the
interest of Landlord under this Lease, the Lender shall have no obligation, nor
incur any liability, beyond its then equity interest, if any, in the Property.

 

In the event that
a Lender (or any person or entity to whom the Mortgage may subsequently be
assigned) notifies Tenant of a default under the Mortgage and demands that
Tenant pay its rent and all other sums due under this Lease to the Lender,
Tenant shall honor such demand without inquiry and pay its rent and all other
sums due under this Lease directly to the Lender or as otherwise required
pursuant to such notice and shall not thereby incur any obligation or liability
to Landlord.

 

Section 17.3           Subordination and Attornment. 
Tenant agrees and acknowledges that this Lease is subordinate to the
lien of any Mortgage, but that, at the Lender’s election, this Lease may be
made prior to the lien of any Mortgage, and in the event a Lender succeeds to
the interests of Landlord under this Lease, then, at the Lender’s election (a) Tenant
shall be bound to the Lender under all of the terms, covenants and conditions
of this Lease for the remaining balance of the term hereof, with the same force
and effect as if the Lender were the lessor hereunder, and Tenant does hereby
agree to attorn to the Lender as its lessor without requiring the execution of
any further instruments immediately upon the Lender succeeding to the interests
of Landlord under this Lease; provided, however, that Tenant agrees to execute
and deliver to the Lender any instrument reasonably requested by it to evidence
such attornment; and (b) subject to the observance and performance by
Tenant of all the terms, covenants and conditions of this Lease on the part of
Tenant to be observed and performed, the Lender shall recognize the leasehold
estate of Tenant under all of the terms and conditions of this Lease for the
remaining balance of the term with the same force and effect as if the Lender were
the lessor under the Lease.

 

Section 17.4           Execution.  Tenant, upon
request of Landlord or any party in interest, shall execute promptly such
instruments or certificates as may be required to carry out the intent and
effectuate the above provisions of this Article. Tenant hereby irrevocably
appoints Landlord as attorney-in-fact for Tenant with full power and authority
to execute and deliver in the name of Tenant any such instruments or
certificates.

 

Section 17.5           Recording.  This Lease
shall not be recorded without the prior consent of Landlord.  Upon the

 

16

 

request of Landlord,
Tenant shall execute a short form or other memorandum of this Lease which may,
in Landlord’s sole discretion, be recorded.

 

ARTICLE 18.   INDEMNIFICATION

 

Section 18.1           Tenant’s Indemnification of Landlord. Tenant shall protect, indemnify, save
and keep harmless Landlord against and from all claims, loss, liability, cost,
damage or expense (including reasonable attorneys’ fees) in connection with any
accident, personal injury or death, property damage occurring in, on or at the
Leased Premises, or arising, directly or indirectly, out of or from Tenant’s
occupancy or use of the Leased Premises or the Shopping Center, the use of the
utilities and fuel located therein or thereunder, any breach of this Lease, the
business conducted in the Leased Premises or, without limiting the foregoing,
as a result of any act or omission of Tenant, its employees, agents, invitees,
subtenants, licensees, assignees or contractors. Tenant shall protect and save
and keep Landlord harmless and indemnified against and from any penalty, damage
or charges imposed for any violations of any law or ordinance.  Tenant shall also protect, indemnify, save
and keep harmless Landlord against and from any and all claims, loss,
liability, cost, damage, liens or expense (including attorneys’ fees) arising
out of any failure of Tenant or its employees, agents, contractors or
representatives in any respect to comply with and perform all the requirements
and provisions of this Lease.

 

Section 18.2           Landlord’s Indemnification of Tenant. Landlord shall protect, indemnify, save
and keep harmless Tenant against and from all claims, loss, liability, cost,
damage or expense (including reasonable attorneys’ fees) in connection with any
accident, personal injury or death, property damage occurring in, on or at the
Common Areas, as a result of any act or omission of Landlord, its employees,
agents, contractors or representatives.

 

ARTICLE 19.   MECHANIC’S LIEN OR CLAIMS

 

Section 19.1           Mechanic’s Liens. 
Tenant shall not permit to be created or to remain undischarged any
lien, encumbrance or charge arising from or out of any work of any contractor,
mechanic, laborer or materialman, which shall be or become a lien or
encumbrance or charge upon the Leased Premises or the Shopping Center or the
income therefrom, and Tenant shall not suffer any other matter or thing whereby
the estate, right and interest of Landlord in the Leased Premises or in the
Shopping Center might be impaired.  If
any lien or notice of lien on account of an alleged debt of Tenant shall be
filed against the Leased Premises or the Shopping Center, Tenant shall, within
ten (10) days after notice of the filing thereof, cause the same to be
discharged of record by payment, deposit, bond, order of a court of competent
jurisdiction or otherwise. If Tenant shall fail to cause such lien or notice of
lien to be discharged within the period provided, then Landlord, in addition to
any other rights or remedies, may, but shall not be obligated to, discharge the
same by either paying the amounts claimed to be due or by procuring the
discharge of such lien by deposit or by bonding proceedings.  In any such event, Landlord shall be
entitled, if Landlord so elects, to defend any prosecution of an action for
foreclosure of such lien by the lienor and to pay the amount of the judgment in
favor of the

 

17

 

lienor with interest,
costs and allowances.  Any amount paid by
Landlord and all costs and expenses, including attorneys’ fees, incurred by
Landlord in connection therewith, together with interest thereon, at the rate
set forth in Section 28.7, from the respective dates of Landlord’s making
of the payment or incurring of the cost and expense, shall be paid by Tenant to
Landlord on demand.  Notwithstanding the
foregoing, not less than five (5) days prior to the commencement of any
work to be performed by or on behalf of Tenant at the Leased Premises, Tenant
shall notify Landlord of the proposed work and the names and addresses of the
persons supplying labor and materials for the proposed work so that Landlord
may avail itself of the provisions of any laws regarding the protection of
Landlord’s interest in the Leased Premises and the Shopping Center from
mechanic’s liens.  During the progression
of any such work on the Leased Premises, Landlord and its representatives shall
have the right, upon at least 24 hours verbal notice, to go upon and inspect
the Leased Premises at all reasonable times, and shall have the right to post
and keep posted thereon notices regarding mechanic’s liens or to take any
further reasonable action which Landlord may deem to be proper for the
protection of Landlord’s interest in the Leased Premises and the Shopping
Center.

 

ARTICLE 20.   ACCESS TO LEASED PREMISES

 

Section 20.1           Landlord’s Access. 
Tenant shall permit Landlord and Landlord’s agents or designees to
inspect or examine the Leased premises at any time upon reasonable notice and
shall permit Landlord access to the Leased Premises upon reasonable notice for
the purpose of making such repairs, alterations, improvements or additions in
the Leased Premises or to any portion of the Shopping Center that Landlord may
deem desirable or necessary or which Tenant has covenanted in this Lease to do
and has failed to do.  Such access shall
not be construed as an eviction of Tenant in whole or in part and the rent
payable hereunder shall in no manner abate while such repairs, alterations,
improvements or additions are being made by reason of loss or interruption of
the business of Tenant because of the performance of such work.  Landlord shall use commercially reasonable
efforts not to cause disruption to Tenant’s business during such access and
will coordinate any access with respect to Tenant’s security and privacy
requirements.

 

ARTICLE 21.   SURRENDER OF LEASED
PREMISES

 

Section 21.1           Surrender by Tenant. 
Tenant shall deliver and surrender to Landlord possession of the Leased
Premises upon expiration of this Lease, or its earlier termination as herein
provided, broom clean and in as good condition and repair as the same shall be
at the commencement of the Lease Term.

 

Section 21.2           Removal of Property. 
Tenant shall remove all property of Tenant and all alterations,
additions and improvements as to which Landlord shall have made the election
provided in Section 8.2, shall repair all damage to the Leased Premises
caused by such removal and restore the Leased Premises to the condition in
which they were prior to the installation of the articles so removed.  Except for Tenant’s obligation to remove its
vault, any property not so removed at the expiration of the Lease Term and as
to which Landlord shall have not made such election shall be deemed to have
been abandoned by Tenant

 

18

 

and to be
Landlord’s property and may be retained or disposed of by Landlord, as Landlord
shall desire.  Tenant’s obligation to
observe or perform this covenant shall survive the expiration or termination of
this Lease.

 

ARTICLE 22.   SECURITY AGREEMENT 

(intentionally deleted)

 

ARTICLE 23.   QUIET ENJOYMENT

 

Section 23.1           Landlord’s Covenant.  Landlord
agrees that if Tenant pays the Minimum Rent, additional rent and all other
charges provided in this Lease, if any, and shall perform all of the covenants
and agreements contained herein to be performed on Tenant’s part, Tenant shall
have the peaceable and quiet enjoyment and possession of the Leased Premises
during the Lease Term, without any manner of hindrance from Landlord or any
persons lawfully claiming through Landlord, except as to such portion of the
Leased Premises as shall be taken under the power of eminent domain and
otherwise subject to the terms and provisions of this Lease, including without
limitation the terms and provisions of any Mortgage.

 

ARTICLE 24.   NOTICES

 

Section 24.1           How Given.  Any notice,
consent, approval, waiver or other communication which Landlord or Tenant may
be required or permitted to give to the other under the terms of this Lease
shall be in writing and shall be deemed to be delivered upon receipt or
refusal, if delivered by hand or by personal or overnight delivery service,
with receipts for delivery, or upon deposit if mailed by certified or
registered mail, return receipt requested, addressed if to Tenant, at the
address of Tenant set forth in the preamble hereto, and if to Landlord, at the
address of Landlord set forth in the preamble hereto, or to such other address
as either party shall have designated by notice to the other with a copy of all
notices or other communications delivered or sent to Landlord delivered or sent
to Richard Crystal, Esq., Brown Raysman Millstein Felder &
Steiner LLP, 900 Third Avenue, New York, NY 10022.

 

ARTICLE 25.   BROKERAGE

 

Section 25.1           Broker.  Tenant
covenants, warrants and represents to Landlord that there was no broker, finder
or other agent, other than Broker, instrumental in consummating this Lease and
that no conversation or prior negotiations were had by Tenant with any other
broker, finder or agent concerning the renting of the Leased Premises.  Tenant agrees to protect, defend, indemnify,
save and keep Landlord harmless against and from all liabilities, claims,
losses, costs, damages and expenses, including attorneys’ fees, arising out of
or from any claims for brokerage commissions or finders’ fees resulting from
any conversation or negotiations had by Tenant with any other broker or any
other person.

 

ARTICLE 26.   SECURITY DEPOSIT 

(intentionally deleted)

 

19

 

ARTICLE
27.   TENANT’S ADDITIONAL AGREEMENTS

 

Section 27.1           Affirmative Obligations.  Tenant agrees, at its own cost and expense,
to:

 

(1)           Light Display Windows:  keep the display windows and signs, if any,
in or on the Leased Premises electrically lighted from dusk until 10:00 p.m.
on all days during which the majority of stores in the Shopping Center are open
for business and during such other periods as Landlord may reasonably
designate;

 

(2)           Keep Premises Clean:  keep the Leased Premises (including, without
limitation, exterior and interior portions of all windows, doors and all other
glass) in a neat and clean condition;

 

(3)           Storing Merchandise:  (intentionally deleted);

 

(4)           Non-selling Space:  (intentionally deleted)

 

(5)           Keep Premises Attractive:  maintain the Leased Premises and Tenant’s
personal property therein as an attractive shopping area in accordance with the
general character of the Shopping Center and to that end Tenant shall repaint the interior of the Leased Premises and
clean and replace carpeting or other floor covering on a regular basis;

 

(6)           Labor Regulations:  take no action which would violate Landlord’s
union contracts, if any, affecting the Shopping Center, nor create any work
stoppage, picketing, labor disruption or dispute, or any interference with the
business of the Landlord or any tenant or occupant in the Shopping Center or
with the rights and privileges of any customer or other persons lawfully in and
upon the Shopping Center, nor cause any impairment or reduction of the good
will of the Shopping Center;

 

(7)           Pay Taxes:  pay before delinquency any and all taxes,
assessments and public charges levied, assessed or imposed upon Tenant’s
business or upon Tenant’s fixtures, furnishings or equipment in the Leased
Premises;

 

(8)           Pay License Fees:  pay when and as due all license fees, permit
fees and charges of a similar nature for the conduct by Tenant or any
concessionaire of any business or undertaking authorized hereunder and
conducted in the Leased Premises;

 

(9)           Shopping Center Name:  (intentionally deleted);

 

(10)         Cleaning Program:  participate in any window cleaning and
exterminating program that may be established by Landlord for any businesses in
the Shopping Center;

 

(11)         Tenant’s Fixtures:  operate its business in the Leased Premises
with adequate equipment which when initially installed, shall, be like-new,
functional, sufficient and of first-class workmanship;

 

(12)         Garbage:  handle and dispose of all rubbish, garbage
and waste from Tenant’s operations in accordance with regulations established
by Landlord and not permit the accumulation (unless in concealed metal
containers to be located

 

20

 

at
the rear of the Leased Premises) or burning of any rubbish or garbage in, on or
about any part of the Shopping Center.

 

Section 27.2           Negative Obligations.  Tenant agrees that it shall not at any time
without first obtaining Landlord’s consent:

 

(1)           Not Change Exterior Architecture:  change (whether by alteration, replacement,
rebuilding or otherwise) the exterior color or architectural treatment of the
Leased Premises or of the building in which the same are located, or any part
thereof;

 

(2)           Not Use Sidewalks or Common Areas:  use, or permit to be used, the sidewalk or
mall corridor adjacent to, or any other space outside, the Leased Premises for
display, sale or any other similar activity;

 

(3)           Not Use Roof:  use, or permit to be used, for the storage of
equipment other than the accommodation of air conditioning equipment, or for any
other purpose whatsoever, the roof areas of the Leased Premises or the Shopping
Center; allow any air conditioning service representative or any other person
access to the roof without prior notice to Landlord;

 

(4)           No Loud Speaker:  use, or permit to be used, any advertising
medium, loud speaker, sound amplifier, or radio or television broadcast which
may be heard outside the Leased Premises or which does not comply with the
general policies or rules and regulations then in effect;

 

(5)           Not Misuse Plumbing Facilities:  use the plumbing facilities for any purpose
other than that for which they were constructed, or dispose of any garbage or
other foreign substance therein, whether through the utilization of so-called
“disposal” or similar units, or otherwise;

 

(6)           No Liens:  subject any fixtures, furnishings or
equipment in or on the Leased Premises which are affixed to the realty to any
mortgages, liens, conditional sales agreements, security interests,
encumbrances or the like;

 

(7)           Not Damage the Premises:  perform any act or carry on any practice
which may damage, mar or deface the Leased Premises or any other portion of the
Shopping Center;

 

(8)           No Vending Machines:  except as expressly identified herein and
permitted hereby, operate on the Premises or in any part of the Shopping Center
any coin or token operated vending machine or similar device (including,
without limitation, amusement devices and machines for the sale of beverages,
foods, candy, cigarettes or other merchandise or commodities);

 

(9)           No Awnings: install any awnings in or
on the Leased Premises which are visible to public view outside the Leased
Premises;

 

(10)         Window Cleaning and Janitorial Services:  permit window cleaning or other exterior
maintenance and janitorial services in and for the Leased Premises to be
performed, except by such persons as shall be approved by Landlord and except during
hours designated for such purposes by Landlord;

 

21

 

(11)         Freight Handling Equipment: 
use any fork-lift truck, tow truck or any other powered machine for
handling freight in the interior delivery system, if any, except the truck
passageway portion thereof, or in the Leased Premises;

 

(12)         Not Exceed Floor Loads: 
place a load on any floor in the interior delivery system, if any, or in
the Leased Premises exceeding the floor load per square foot which such floor
was designed to carry, or install, operate or maintain therein any heavy item
of equipment except in such manner as to achieve a proper distribution of the
weight;

 

(13)         Not Exceed Electrical Load: 
install, operate or maintain in the Leased Premises any electrical
equipment which has not been approved by Landlord, in light of the overall
system and requirements therefor in the Shopping Center;

 

(14)         Not Permit Odors, Noise, etc.: 
suffer, allow or permit any offensive or obnoxious vibration, noise,
odor or other undesirable effect to emanate from the Leased Premises, or any
machine or other installation therein, or otherwise suffer, allow or permit the
same to constitute a nuisance or otherwise interfere with the safety, comfort
or convenience of Landlord or any of the other occupants of the Shopping Center
or their customers, agents or invitees or any others;

 

(15)         Not Invalidate Insurance: 
use or occupy the Leased Premises or any part of the Shopping Center or
do or permit anything to be done thereon in any manner which shall make it more
difficult for Landlord or Tenant to obtain at standard rates any insurance
required hereunder or desired, or which will invalidate or increase the cost to
Landlord of any existing insurance, or which will cause structural injury to
any building or Common Area, or which would constitute a public or private
nuisance or which would violate any present or future laws, regulations,
ordinances or requirements (ordinary or extraordinary, foreseen or unforeseen)
of the federal, state or municipal governments, of any department,
subdivisions, bureaus or offices thereof, or of any other governmental public
or quasi-public authorities now existing or hereafter created having
jurisdiction in the Leased Premises or the Shopping Center;

 

(16)         Not Injure Reputation: 
use or occupy the Leased Premises for any purpose which may injure the
reputation of the Leased Premises or the Shopping Center or of the neighborhood
in which the same are located or impair the value of the Leased Premises or the
Shopping Center; Tenant agrees that Landlord shall have the right to prohibit
the continued use by Tenant of any unethical or unfair method of business
operation, advertising or interior display, if, in Landlord’s opinion, the
continued use thereof would impair the reputation of the Shopping Center as a
desirable place to shop or otherwise be out of harmony with the general
character thereof, and upon notice from Landlord, Tenant shall forthwith
refrain from or discontinue such activities;

 

(17)         No Solicitation: 
solicit business or distribute advertising or promotional matter in the
Common Areas; and

 

22

 

(18)         Employee Parking:  allow or permit any employee to park in any
area other than as specifically designated by Landlord for employee parking.

 

ARTICLE
28.   DEFAULT

 

Section 28.1           Default of Tenant.  Tenant shall be in default under the terms of
this Lease if:

 

(i)         Tenant shall fail to pay when due the Minimum Rent
or any additional rent or other charges due hereunder provided Tenant shall
have five (5) days to cure such default upon written notice from Landlord;
or

 

(ii)        Tenant shall fail to observe or perform any of the
terms, covenants or conditions of this Lease other than those set forth in
Subsection 28.1(i) , and such failure shall continue after ten (10) days’
notice thereof by Landlord, or, if the default is of such a nature that it
cannot be cured within ten (10) days, if Tenant shall not have commenced
the curing of such default within such ten-day period and thereafter proceed
diligently to cure the default; or

 

(iii)       Tenant or any guarantor of this Lease (a
“Guarantor”) shall file a voluntary petition in bankruptcy or apply for
reorganization or make an assignment for the benefit of creditors, or if any
receiver or trustee is appointed for any of Tenant’s (or any Guarantor’s)
property or business or any petition in bankruptcy is filed against Tenant (or
any Guarantor), and such receiver, trustee or petition is not discharged within
sixty (60) days; or

 

(iv)       any final judgment against Tenant (or any
Guarantors) is not satisfied within sixty (60) days or any execution or
attachment is issued against Tenant (or any Guarantor) or Tenant’s (or any
Guarantor’s) property and remains unsatisfied or undischarged for ten (10) days;
or

 

(v)        Tenant shall vacate or abandon the Leased Premises.

 

Section 28.2           Remedies of Landlord.  Upon any default by Tenant as described in Section 28.1,
Landlord shall have the immediate right to re-enter the Leased Premises by
summary proceedings, force or otherwise and the right to change locks and to
dispossess all persons therefrom and to remove and dispose of all property
therein or, at Landlord’s election, to store such property in a public
warehouse or elsewhere at the cost and for the account of Tenant, all without
service of any notice of intention to re-enter and with or without resort to
legal process (which Tenant hereby expressly waives) and without Landlord being
deemed guilty of trespass or becoming liable for any loss or damage which may
be occasioned thereby. Upon any default of Tenant as described in Section 28.1,
Landlord shall also have the right, at its option, in addition to and not in
limitation of any other right or remedy if the Lease Term shall not have
commenced, to cancel this Lease by notice to Tenant, or, if the Lease Term
shall have commenced, to serve upon Tenant a written notice that this Lease and
the Lease Term will terminate on a date specified therein, which date shall be
not less than three (3) days after the serving of such notice, and, upon
the date so specified, this Lease and the Lease Term shall terminate and expire
as fully and completely as if such date

 

23

 

were the day herein definitely fixed for the expiration of this Lease
and the Lease Term, and thereupon Landlord shall have the immediate right of
re-entry and Tenant shall surrender the Leased Premises, but Tenant shall
remain liable as provided below.  If
Tenant shall be served with a demand for the payment of past due rent, any
payments tendered thereafter to cure any default by Tenant shall be made only
be cashier’s or certified check.  In the
event of any default, re-entry or termination or dispossess, by summary
proceedings or otherwise, (i) all Minimum Rent and additional rent due at
the time of such default, re-entry, termination or dispossess shall be paid in
full; and (ii) Tenant shall pay to Landlord all expenses, including court
costs and attorneys’ fees and disbursements incurred by Landlord in recovering
possession of the Leased Premises; and (iii) Landlord may relet the Leased
Premises or any part or parts thereof, either in the name of Landlord or Tenant
or otherwise, as Landlord may determine, for a term which at Landlord’s option
may be less than or exceed the period which would otherwise have constituted
the balance of the Lease Term, and may grant concessions or free rent; and (iv) Tenant
or the legal representative of Tenant also shall pay Landlord, as liquidated
damages for the failure of Tenant to observe and perform Tenant’s covenants
herein contained, for each month of the period which would otherwise have
constituted the balance of the Lease Term, the amount by which (x) the sum
of (a) the Minimum Rent and all additional rent which would have been due,
plus (y) the net amount, if any, of the rents collected on account of the
lease or leases of the Leased Premises. 
Any such liquidated damages shall be paid in monthly installments by
Tenant on the day specified in this Lease for the collection of Minimum Rent,
any suit brought to collect the amount of the deficiency for any month shall
not prejudice in any way the rights of Landlord to collect the deficiency for
any subsequent month by a similar proceeding, or, at Landlord’s option, and if
permitted by law, Tenant shall pay such deficiency on either of the accelerated
bases as hereinafter set forth.  In computing
such liquidated damages there shall be added to such deficiency all expenses
that Landlord may incur in connection with reletting, such as attorneys’ fees
and disbursements, brokerage and expenses of placing and keeping the Leased
Premises in good order or of preparing the same for reletting as hereinafter
provided and Landlord’s costs of performing its covenants under the new lease
of the Leased Premises to the extent that the same are greater than Landlord’s
duties hereunder.  Landlord, at Landlord’s
option, may make such alterations, repairs, replacements or decorations in the
Premises as Landlord in Landlord’s sole judgment considers advisable and
necessary for the purpose of reletting the Premises; and the making of such
alterations, repairs, replacements or decorations shall not operate or be
construed to release Tenant from liability hereunder.  Unless otherwise required by law, Landlord
shall in no event be liable in any way whatsoever for failure to relet the
Premises, or, in the event that the Premises are relet, for failure to collect
the rent thereof under such reletting nor shall the refusal or failure of
Landlord to relet the Leased Premises or any part or parts thereof release or
affect Tenant’s liability for damages. 
Notwithstanding anything contained herein to the contrary, in the event
that this Lease is terminated pursuant to the provisions of this Lease,
Landlord may recover from Tenant all damages it may sustain by reason of
Tenant’s default, including the cost of recovering the Leased Premises and
attorneys’ fees, and, upon so electing and in lieu of the damages that might
otherwise be recoverable under this

 

24

 

Section or
Section 28.3, Landlord shall be entitled to recover from Tenant, as and
for Landlord’s damages, an amount equal to the total Minimum Rent and projected
additional rent and charges for the entire remaining term of the Lease
agreement of the parties.  Said amount
shall be due and payable in full upon the Tenant’s breach of this Lease
agreement.  Tenant specifically
acknowledges that Landlord shall have no obligation to mitigate the damages
provided for in the foregoing portion of this paragraph, by reletting the
premises or otherwise.  Landlord and
Tenant specifically acknowledge that this remedy is a provision for liquidated
damages and is not a penalty, that the damages which Landlord is likely to
suffer should Tenant breach this Lease agreement are impossible to calculate at
the time this agreement is executed, and the parties have specifically
negotiated this portion of the agreement. 
If, for any reason, it is determined that Landlord cannot collect the
damages provided for in the immediately foregoing portion of this paragraph
then Landlord shall be entitled to recover from Tenant, as and for Landlord’s
damages, an amount equal to the difference between the Minimum Rent and
additional rent reserved under this Lease for the period which otherwise would
have constituted the balance of the Lease Term and the then present rental
value of the Leased Premises for such period, without discount to present
worth, all of which shall immediately be due and payable by Tenant to Landlord.

 

Section 28.3           Other Legal Remedies.  Each right and remedy of Landlord provided
for in this Lease shall be cumulative and shall be in addition to every other
right and remedy provided for in this Lease or now or hereafter existing at law
or in equity or by statute or otherwise, and the exercise or beginning of the
exercise by Landlord of any one or more of the rights or remedies provided for
in this Lease or now or hereafter existing at law or in equity or by statute or
otherwise shall not preclude the simultaneous or later exercise by Landlord of
any or all other rights or remedies provided for in this Lease or now or
hereafter existing at law or in equity or by statute or otherwise.  Further, nothing herein contained shall be
construed as limiting or precluding the recovery by Landlord against Tenant of
any sums or damages to which, in addition to or in lieu of the damages
particularly provided for in Section 28.2 and otherwise herein, Landlord
may lawfully be entitled at the time when such damages are to be proved, by
reason of any default hereunder on the part of the Tenant.

 

Section 28.4           Waiver of Trial by Jury and Counterclaim.  Landlord and Tenant hereby waive trial by
jury in any action, proceeding or counterclaim brought by either against the
other upon any matters whatsoever arising out of or in any way connected with
this Lease, Tenant’s use or occupancy of the Premises, or any claim of injury
or damage.  It is further mutually agreed
that in the event Landlord commences any summary proceedings for nonpayment of
Minimum Rent or additional rent, Tenant will not interpose any counterclaim or
offset of whatever nature or description in any such proceeding.  It is specifically agreed that in the event
that Landlord commences any judicial proceeding against Tenant, including a
proceeding for nonpayment of Minimum Rent or additional rent, Tenant will not
interpose any defense, counterclaim or offset of whatever nature or
description.  Nor will Tenant raise any
defense of waiver or challenge the jurisdiction of the Court hearing any
proceeding on the basis of the receipt by Landlord of any rent at any time
including receipt subsequent to receipt of notice of

 

25

 

termination, termination or claimed termination of the Lease by the
Landlord and prior to commencement of judicial proceedings. The parties specifically
agree that receipt of rent shall under no circumstances give rise to a month to
month tenancy.

 

Section 28.5           Holding Over.  If Tenant remains in possession of the Leased
Premises after the expiration of the term of this Lease, Tenant, at Landlord’s
election, may be deemed to be occupying the Leased Premises as a tenant from
month-to-month, at a monthly rental equal to 150% of the sum of (i) the
monthly installment of Minimum Rent payable during the last month of the Lease
Term, plus (ii) 1/12 of one hundred and twenty-five (125%) percent of
Common Charges and Real Estate Taxes payable during the last year of the
term.  Such tenancy shall be subject to
all of the other terms, provisions, conditions and obligations of this Lease
insofar as they may be applicable to a month-to-month tenancy.

 

Section 28.6           Waiver of Redemption.  To the extent permitted by law, Tenant hereby
expressly waives any and all rights of redemption granted by or under any
present or future laws in the event of Tenant being evicted or dispossessed for
any cause, or in the event of Landlord obtaining possession of the Leased
Premises, by reason of the violation by Tenant of any of the covenants or
conditions of this Lease.

 

Section 28.7           Late Payments.  In addition to any other remedies available
to Landlord hereunder, Tenant shall pay to Landlord a bookkeeping and
processing charge equal to the greater of (i) 5% of any delinquent payment
of Minimum Rent or additional rent or (ii) One Hundred Dollars ($100),
when any such Minimum Rent or additional rent is paid more than ten (10) days
after the due date thereof.  Such payment
shall be for the purpose of defraying the extra expense involved in processing,
collecting and/or handling delinquent payments and shall be payable by Tenant to
Landlord upon demand.  Tenant also shall
pay interest, at the annual rate of 15% or the highest rate allowed by law,
whichever is less, on payments which are delinquent by more than ten (10) days
and shall pay all attorneys’ fees incurred by Landlord in the collection of
past due rents with interest at the aforesaid rate.

 

ARTICLE
29.   LIMITED LIABILITY OF LANDLORD

 

Section 29.1           Damage to Leased Premises.  The Landlord and the Landlord’s agents and
employees shall not be liable for, and Tenant waives, any and all claims for
damages to person and property or otherwise sustained by Tenant or Tenant’s
agents, employees, assigns, licensees, concessionaires, invitees or any person
claiming through said parties resulting from any accident or occurrence in or upon
the Leased Premises, or any part of the Shopping Center.  Said waiver shall include, but not be limited
to, claims for damage to person or property resulting from any equipment or
appurtenance out of repair, defective electrical, heating, air conditioning,
plumbing, sewer, water system or installations or from the operation of said
equipment or installation, or damage by fire, steam, broken glass, ice, water,
snow, gas entering the Leased Premises or for the acts, omissions or negligence
of trespassers or other occupants of the Shopping Center.

 

Section 29.2           Definition of Landlord.  The term “Landlord” as used in this Lease
means only the owner or the

 

26

 

mortgagee in possession, for the time being, of the building in which
the Leased Premises are located so that, in the event of any sale of such
building, Landlord shall be and hereby is entirely freed and relieved of all
obligations of Landlord hereunder arising after the date of transfer and it
shall be deemed without further agreement between the parties and such
purchaser that the purchaser has assumed and agreed to observe and perform all
obligations of Landlord hereunder arising after the date of transfer.

 

Section 29.3           Non-recourse to Landlord.  It is specifically understood and agreed that
neither Landlord, nor any partner of Landlord, shall have any personal
liability with respect to any of the terms, covenants, conditions or provisions
of this Lease.  In the event of a breach
or default by Landlord of any of its obligations under this Lease, Tenant shall
look solely to the equity of the Landlord in the Shopping Center for the
satisfaction of any claims which it may have against Landlord.

 

ARTICLE
30.   RIGHT TO CURE DEFAULTS

 

Section 30.1           Landlord’s Rights. If Tenant shall fail to
comply fully with any of its obligations under this Lease (including, without
limitation, its obligations to make repairs, maintain various policies of
insurance, comply with all laws, ordinances and regulations and pay all bills
for utilities), then Landlord shall have the right, at its option and in
addition to any other remedies it has under this Lease and without hereby
waiving such default, to cure such breach at Tenant’s expense without notice in
the case of emergency and in any other case if such default continues after
five (5) days written notice by Landlord. 
Tenant agrees to reimburse Landlord (as additional rent) for all costs
and expenses incurred as a result thereof together with interest thereon at the
rate set forth in Section 28.7 promptly upon demand.

 

ARTICLE
31.   SIGNS

 

Section 31.1           Installation.  Tenant shall not, without Landlord’s prior
consent, place or install any sign on the roof or on any exterior wall of the
Leased Premises (including, without limitation, both the interior and exterior
surfaces of windows and doors) except that Tenant may install and maintain, at
its own cost and expense, including payments for permits, a storefront sign,
provided same is approved by Landlord as to dimensions, content, material,
location and design, which approval shall not be unreasonably withheld.  Tenant agrees that, if required by Landlord,
all signs shall be union made and shall not be installed on the Leased Premises
or the building in which the Leased Premises are located until all approvals
and permits from all governmental agencies having jurisdiction are first
obtained and copies thereof delivered to Landlord together with evidence of
payment for any fees pertaining to Tenant’s signs.  Notwithstanding the foregoing, Landlord’s
consent shall not be required for a banking regulation signage on the Leased
Premises.

 

Section 31.2           General Provisions.  Tenant shall procure appropriate workmen’s
compensation and liability insurance policies covering the installation and
maintenance of any signs, and all such policies or certificates of such
policies shall be delivered to Landlord prior to the

 

27

 

commencement of any work and shall provide that such policies are not
cancelable, except upon ten (10) days’ written notice to Landlord.  In the event Landlord shall deem it necessary
to remove such sign or signs in order to paint or make any repairs, alterations
or improvements in and upon the Leased Premises, or the building in which same
is situated, or any part thereof, Landlord shall have the right to do so,
provided the same be removed and replaced at Landlord’s expense, whenever such
repairs, alterations or improvements shall have been completed.

 

ARTICLE
32.   MISCELLANEOUS PROVISIONS

 

Section 32.1           Right to Relocate.  (intentionally deleted)

 

Section 32.2           Right to Change Payments Due.
(intentionally deleted)

 

Section 32.3           Easement for Pipes.  Tenant shall permit Landlord or its designees
to erect, use, maintain and repair pipes, cables, conduits, plumbing, vents and
wires, in, to and through the Leased Premises, as and to the extent that
Landlord may now or hereafter deem it to be necessary or appropriate for the
proper operation and management of the Shopping Center.  All such work shall be done, so far as
practicable in the sole determination of Landlord, in such manner as to avoid
unreasonable interference with Tenant’s use of the Leased Premises and will
coordinate any access with respect to Tenant’s security and privacy
requirements .

 

Section 32.4           Environmental Matters.  (a) Tenant agrees that it shall comply
with all local, state and federal laws, rules and regulations dealing with
the manufacture, generation, use, storage, treatment, transportation, disposal,
release or removal of hazardous substances, materials, pollutants,
contaminants, wastes, including but not limited to, the Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C.
9601 et seq., the Federal Water Pollution Control Act, 33
U.S.C. 1231, et seq., the Emergency Planning and Community
Right to Know Act, 33 U.S.C. 11000 et seq., the Resource
Conservation and Recovery Act (“RCRA”), 42 U.S.C. 6901 et seq.,
and the Clean Air Act, 42 U.S.C. 7401 et seq., as such laws
may be amended or modified, whether such laws are presently in existence or
promulgated during the Lease Term and all rules and regulations
promulgated hereunder (“Environmental Laws”). 
Without limiting the foregoing, Tenant agrees that it will (i) give
written notice to Landlord at least seven (7) days in advance of any
manufacture, generation, use, storage, treatment, transportation, disposal,
release or removal of Hazardous Substances from or on the Leased Premises, (ii) give
written notice to Landlord within two (2) days of receipt of any notice of
violation, claim, suit or investigation relating to Hazardous Substances, (iii) immediately
notify Landlord of any Hazardous Substance spill, release or discharge at or
affecting the Leased Premises and immediately clean up any such spill, release
or discharge in compliance with all applicable Environmental Laws, (iv) not
use or employ the property, facilities, equipment or services of the Shopping
Center to manufacture, generate, use, store, treat or dispose of or release
Hazardous Substances, whether or not they were generated or produced on the
Leased Premises, and (v) defend, indemnify and hold harmless Landlord
against any and all claims (including reasonable attorney and expert fees and

 

28

 

cleanup
costs), damage, liability and costs which Landlord may suffer, incur or pay
resulting from or arising out of any manufacture, generation, use, storage,
treatment, transportation, disposal, release or threat of release of Hazardous
Substances from or on the Leased Premises or the Shopping Center (x) as a
result of Tenant’s actions or actions of Tenant’s agents, employees, guests or
invitees or (y) arising during or attributable to all periods of Tenant’s
possession of the Leased Premises. 
“Hazardous Substances” means and includes all toxic or hazardous
substances, materials, chemicals, contaminants, pollutants, and wastes, of
whatever kind or nature, regulated under, defined in, or listed in any
Environmental Laws.  Hazardous Substances
include, without limitation, asbestos, PCBs, CFCs, petroleum and lead-based
paint.

 

(b)           If Tenant fails to fully comply with the terms of
this Section, Landlord may, at its option, perform any or all of Tenant’s
obligations thereunder and all costs and expenses incurred by Landlord
(including reasonable attorney and expert fees and cleanup costs) in connection
therewith shall be deemed to be additional rent payable by Tenant on demand
therefor.

 

(c)           Landlord agrees that it shall comply with all local,
state and federal laws, rules and regulations dealing with Hazardous
Substances which apply to the Leased Premises, whether such laws are presently
in existence or promulgated during the Lease Term, relating to environmental
conditions existing or arising prior to the commencement of the Lease Term, except
for any and all laws or matters relating to the presence of asbestos or
asbestos containing materials (hereafter “ACM”) at the Leased Premises.

 

(d)           Except for any and all laws or matters relating to
ACM at the Leased Premises, Landlord agrees that it shall defend, indemnify and
hold harmless Tenant against any and all claims, damage, liability and costs
which Tenant may suffer, incur or pay resulting from or arising out of any
handling, storage, treatment, transportation, disposal, release or threat of
release of Hazardous Substances from or on the Leased Premises as a result of (i) Landlord’s
actions, or (ii) conditions existing at the Leased Premises prior to the
commencement of the Lease Term.

 

(e)           With respect to ACM, Tenant accepts the Leased
Premises “as is” and understands that ACM may be present in the insulation,
ceiling tiles or otherwise in the Leased Premises. Tenant agrees (i) not
to conduct or permit activities at the Leased Premises which would result in
the disturbance of ACM or the release of asbestos fibers into the air, (ii) to
comply with all local, state and federal laws, rules and regulations
governing to the disturbance, monitoring, removal, encapsulation, repair,
transportation and disposal of ACM applicable to the Leased Premises or
Tenant’s employees, guests and invitees, and (iii) defend, indemnify and
hold harmless Landlord against any and all claims, damage, liability and costs
which Landlord may suffer, incur or pay resulting from or arising out of any
matters related to ACM, including but no limited to, fines, penalties, personal
injury lawsuits, or wrongful death actions.

 

(f)            The terms of this Section shall survive the
expiration or termination of this Lease.

 

29

 

Section 32.5           Force
Majeure.  The provisions of this Section shall
be applicable if there shall occur during the Lease Term, or prior to the Lease
Commencement Date, any (i) strike, lockout or labor dispute; (ii) the
inability to obtain labor or materials, or reasonable substitutes therefor; (iii) Acts
of God, adverse weather conditions, governmental restrictions, regulations or
controls, enemy or hostile governmental action, civil commotion, fire or other
casualty or other conditions similar to those enumerated in this item (iii) beyond
the reasonable control of the party obligated to perform; or (iv) delays
due to the act or omission of the other party. If Landlord or Tenant shall, as
the result of any of the above described events, fail punctually to perform any
obligation on its part to be performed under this Lease, then such failure
shall be excused and not be a breach of this Lease by the party in question,
but only to the extent occasioned by such event. If any right or option of
either party to take any action under or with respect to this Lease is
conditioned upon the same being exercised within any prescribed period of time
or at or before a named date, then such prescribed period of time and such
named date shall be deemed to be extended or delayed, as the case may be, for a
period equal to the period of the delay occasioned by any above described
event.  Notwithstanding anything herein
contained, however, (a) the provisions of this Section shall not be
applicable to Tenant’s obligation to pay Minimum Rent or additional rent or any
other charge required to be paid by Tenant hereunder, and (b) with respect
to any other obligation of Tenant pursuant to this Lease, only the events
described in item (iii) of the first sentence of this Section shall
be deemed to excuse performance for the purposes of this Section.

 

Section 32.6           Time
of the Essence.  Time shall be of the
essence as to each and every obligation of Tenant hereunder.

 

Section 32.7           Landlord’s
Consent.  Whenever Landlord’s consent
or approval is required pursuant to the terms of this Lease, Landlord may grant
or withhold such consent or approval, or may grant such consent or approval
upon such terms and conditions as Landlord may deem advisable, in Landlord’s
sole and absolute discretion.  Any such
consent or approval must be expressly given in writing signed by Landlord in
order to be binding upon Landlord.

 

Section 32.8           Landlord’s
Costs.  Any reference contained in
this Lease to “costs incurred by Landlord” or “expenses incurred by Landlord”
or similar reference shall be deemed to include all costs and expenses incurred
by Landlord, Landlord’s agents and employees and, with respect to any
activities carried out by Landlord, Landlord’s agents and employees, shall
further include an amount equal to the value of the time spent engaged in such
activities, as if the same were accomplished by an independent party.

 

Section 32.9           Partial
Payments.  No payment by Tenant or
receipt by Landlord of a lesser amount of Minimum Rent or additional rent than
that provided herein shall be deemed to be other than on account of the
earliest stipulated rent, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such rent or pursue any other
remedy provided herein.

 

30

 

Section 32.10         Attorney’s
Fees.  Should it be necessary for
Landlord to employ legal counsel to enforce any of the provisions of this
Lease, Tenant agrees to pay all reasonable attorneys’ fees and other costs and
expenses including court costs incurred. 
In the event of any action or proceeding brought by either party against
the other under this Lease, the prevailing party shall be entitled to recover
all reasonable attorneys’ fees and other costs and expenses incurred in
connection with such action or proceeding, including the cost of appeal, if
any.

 

Section 32.11         No
Waiver.  One or more waivers of any
covenant or condition by Landlord shall not be construed as a waiver of a
subsequent breach of the same or any other covenant or condition, and the
consent or approval by Landlord to or of any act by Tenant requiring Landlord’s
consent or approval shall not be construed to waive or render unnecessary
Landlord’s consent or approval to or of any subsequent similar act by Tenant.

 

Section 32.12         Titles
of Articles.  The titles of the
Articles throughout this Lease are for convenience and reference only, and the
words contained therein shall in no way be held to explain, modify, amplify or
aid in the interpretation, construction or meaning of the provisions of this
instrument.

 

Section 32.13         Invalidity
of Particular Provisions. If any term or provision of this Lease or the
application thereof to any person or circumstance shall to any extent be
invalid or unenforceable, the remainder of this Lease, or the application of
such term of provision to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby, and each
term and provision of this Lease shall be valid and be enforced to the fullest
extent permitted by law.

 

Section 32.14         Successors
and Assigns.  Except as herein
otherwise expressly provided, the terms and provisions hereof shall be binding
upon and shall inure to the benefit of the heirs, executors, administrators,
successors and permitted assigns, respectively, of Landlord and Tenant.  Each term and each provision of this Lease to
be performed by Tenant shall be construed to be both an independent covenant
and a condition. The reference contained to successors and assigns of Tenant is
not intended to constitute a consent to assignment by Tenant, but has reference
only to those instances in which Landlord may have given written consent to a
particular assignment.

 

Section 32.15         Guarantors.  (intentionally deleted)

 

Section 32.16         Relationship
of Parties.  Nothing contained in
this Lease shall be deemed or construed by the parties hereto or by any third
party to create the relationship of principal and agent or of partnership or of
joint venture or of any association whatsoever between Landlord and Tenant, it
being expressly understood and agreed that neither the computation of rent nor
any other provisions contained in this Lease nor any act or acts of the parties
hereto shall be deemed to create any relationship between Landlord and Tenant
other than the relationship of landlord and tenant.

 

31

 

Section 32.17         Multiple Tenants.  If this Lease is executed by more than one
party, it is specifically agreed that the Landlord may enforce the provisions
hereof with respect to one or more of such parties without seeking to enforce
the same as to all or any other such parties, and each of the tenants hereby
waives any requirement of joinder of all or any other of the parties hereto in
any suit or proceeding to enforce the provisions hereof.  The liability hereunder of all parties hereto
shall be joint and several.

 

Section 32.18         Complete Agreement.  This writing contains the entire agreement
between the parties hereto, and no agent, representative, salesperson or
officer of Landlord hereto has authority to make or has made any statement,
agreement or representation, either oral or written, in connection herewith,
modifying, adding or changing the terms and conditions herein set forth.  No amendment or modification of this Lease shall
be binding unless such amendment or modification is in writing and signed by
the party against whom such amendment or modification is being enforced.  Tenant further agrees that this Lease shall
have no force or validity until and unless it is returned to Tenant duly
executed by Landlord.

 

Section 32.19         Corporate or Other Authority.  If the Tenant is a corporation or other
entity, each individual executing this Lease on behalf of said entity
represents and warrants that he is duly authorized to execute and deliver this
Lease on behalf of said entity in accordance with the Charter, By-Laws or other
governing documents of said entity and that this Lease is a valid and binding
obligation of Tenant and any Guarantor of this Lease, enforceable in accordance
with its terms.

 

Section 32.20         Governing Law. This Lease shall
be governed by and construed in accordance with the laws of the State in which
the Shopping Center is located.

 

Section 32.21         Exhibits.  The following Exhibits are attached to this
Lease and are made a part of this Lease by this reference:

 

	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Leased Premises

  
	
  Addendum

  	
   

  	
  -

  	
   

  	
  Extension Option

  

 

Landlord and
Tenant have duly executed this Lease.

 

	
  Landlord:

  	
   

  	
  ARBUTUS SHOPPING CENTER
  

  LIMITED PARTNERSHIP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
  KSB Realty, L.L.C.

  
	
   

  	
   

  	
  its:

  	
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  4/28/06

  	
   

  	
  By:

  	
  /s/ Ricky Singer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  its

  	
  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
   

  	
  CARROLLTON BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
  /s/ Robert A. Altieri

  

 

32

 

	
   

  	
   

  	
   

  	
  its

  	
   

  

 

33

 

LANDLORD

 

	
  STATE OF

  	
  )

  
	
   

  	
  )

  
	
  COUNTY
  OF

  	
  )

  

 

On the
          day of
            ,
20   , before me personally came
                                  ,
to me known, who, being by me dully sworn, did depose and say that he is a
Member of KSB Realty, L.L.C. and that he executed the foregoing instrument with
authority on behalf of said L.L.C.

 

	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC

  

 

 

TENANT (Corporate)

 

	
  STATE OF
  MARYLAND

  	
  )

  
	
   

  	
  )

  
	
  COUNTY
  OF BALTIMORE

  	
  )

  

 

On the 27th day of April, 2006, before me                 personally
came Robert Altieri, to me known, who,                 being
by me duly sworn, did depose and say that he is the                 of
                      ,
a                               
corporation and that he executed the foregoing instrument on behalf of said
corporation.

 

 

	
   

  	
  /s/ C. Barrett

  
	
   

  	
  NOTARY PUBLIC

  

 

34

 

EXHIBIT A

 

Leased Premises

 

 

 

ADDENDUM TO LEASE

BETWEEN

ARBUTUS SHOPPING CENTER LIMITED PARTNERSHIP

AND

CARROLLTON BANK

 

1)  Extension
Option(s).  (a)  Tenant shall
have the right, at its option, to extend the term of this Lease for the
Extension Period(s) upon the same terms, covenants and conditions herein
set forth; provided, however, that the Minimum Rent for the first Lease Year of
each Extension Period shall be increased to the greater of (i) the market
rate then being charged for similar space in the Shopping Center or (ii) the
Minimum Rent for the preceding Lease Year increased by three percent (3%).  Thereafter, the Minimum Rent for each
successive Lease Year during each Extension Period shall be an amount equal to
the Minimum Rent for the last preceding Lease Year, increased by three percent
(3%) per annum.

 

In order to exercise the Extension Option, Tenant shall be required to
give written notice of its intention to extend at least six (6) months but
not more than nine (9) months prior to the Lease Termination Date, or
expiration of the then current Extension Period, as the case may be.  Failure to deliver timely notice as required
above shall cause the Extension Option, and all remaining Extension Options, to
lapse and be of no further force and effect. 
Further, if Tenant shall be in default of the terms of this Lease,
Tenant shall not have the right to exercise the Extension Option and if Tenant
shall default hereunder after such right has been exercised but within the six (6) month
period preceding the Extension Period such election shall, at Landlord’s option,
be null and void.

 

(b)  In the event that
Tenant shall dispute Landlord’s determination of the market rate of rent being
charged for similar space pursuant to the paragraph above, Tenant shall give
notice to Landlord within ten (10) days of Tenant’s receipt of such
Landlord’s determination, and the market rate shall be determined as
follows:  The market rate shall be
determined by a single arbitrator appointed in accordance with the American
Arbitration Association Real Estate Valuation Arbitration Proceeding
Rules.  Such arbitrator shall be
impartial and shall have not less than ten (10) year’s experience in the
County where the Shopping Center is located, in a calling related to the
leasing of commercial space in premises comparable to the Shopping Center.  Within fifteen (15) days following the
appointment of such arbitrator each party shall submit a report setting forth
its determination of the market rate of the Leased Premises for the applicable
term, together with such other information as such party shall deem
relevant.  The arbitrator shall, within
thirty (30) days following such hearing and submission of evidence render his
decision by selecting the determination of market rate then being charged for
similar space in the Shopping Center.  It
is expressly understood that such arbitrator shall have no power or authority
to select any market rate other than the market rate submitted by Landlord or
Tenant, and the decision of such arbitrator shall be final and binding upon the
Landlord and Tenant.  Prior to the
determination of the arbitrator, Tenant shall pay Minimum Rent in an amount
equal to the Landlord’s determination of market rate submitted to Tenant
pursuant to this Section, and following the arbitrator’s final determination,
the amount of any overpayment or underpayment shall be adjusted between the
parties on demand.  The cost of
arbitration shall be borne by

 

 

the party whose determination of Market Rate is not selected by the
arbitrator.

 

 

	
  

  	
   

  	
  Columbia Office

  6750 Alexander Bell Drive, Suite 110

  Columbia, Maryland 21046

  410-872-0400 Fax: 410-953-0360

  

 

October 31,
2007

 

Mr. Victor
W. Zubar

Vice
President

Carrollton
Bank

1589
Sulphur Spring Road, Suite 101

Baltimore,
Maryland 21227

 

RE:    Lease for Carrollton
Bank branch, Bel Air Road, Honeygo Crossing

 

Dear
Vic:

 

As
requested, I enclose a copy of the Lease for the above mentioned Carrollton Bank
branch location.

 

Please
feel free to contact me if you have any questions.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Christopher C. Bennett

  	
   

  
	
  Christopher
  C. Bennett

  	
   

  

 

A
MacKenzie Company

 

	
  Baltimore

  	
  Lutherville

  	
  Bel
  Air

  	
   

  	
  Columbia

  	
  Annapolis

  	
  Maple
  Lawn

  

 

www.mackenziecommercial.comExhibit 10.23

GROUND LEASE

 

BETWEEN

 

TARRAGON, INC.

 

“LANDLORD”

 

AND

 

CARROLLTON BANK

 

“TENANT”

 

 

EXHIBITS

 

	
  EXHIBIT A

  	
   

  	
  Center Site Plan

  
	
  EXHIBIT A-l

  	
   

  	
  Premises Site Plan

  
	
  EXHIBIT A-2

  	
   

  	
  Legal Description of
  Premises

  
	
  EXHIBIT B

  	
   

  	
  Construction
  Requirements

  
	
  EXHIBIT B-l

  	
   

  	
  Description of
  Landlord’s Work and Tenant’s Work

  
	
  EXHIBIT B-2

  	
   

  	
  Signage Criteria

  
	
  EXHIBIT C

  	
   

  	
  Form of
  Subordination and Non-Disturbance Agreement

  
	
  Exhibit D

  	
   

  	
  Rule and
  Regulations

  

 

 

GROUND LEASE

 

THIS
GROUND LEASE (“Lease”)  by and between TARRAGON, INC., a Maryland corporation (“Landlord”);  and Carrollton Bank, a Maryland corporation,
(“Tenant”).

 

WITNESSETH: That
in consideration of the mutual covenants and agreements herein contained,
Landlord and Tenant, intending legally to be bound, hereby covenant and agree
as set forth below.

 

1.             Basic Lease Provisions and Definitions. 
This Section 1 is an
integral part of this Lease and all of the terms hereof are incorporated into
this Lease in all respects. In addition to the other provisions which are elsewhere
defined in this Lease, the following, whenever used in this Lease, shall have
the meanings set forth in this Section, and only such meanings, unless such
meanings are expressly contradicted, limited or expanded elsewhere herein:

 

(a)     DATE OF LEASE: 8/13, 2007.

 

(b)     THE CENTER:

 

; as shown on Exhibit A

 

(c)     LANDLORD’S MAILING ADDRESS:

 

General Notices:

 

Attn: Gregory
Kamenetz

2903 N. Charles
Street

Baltimore, MD
21218

 

For payments of
rent:

 

Attn: Gregory
Kamenetz

2903 N. Charles
Street

Baltimore, MD
21218

 

With a copy of
general notices to:

 

Gregory Kamenetz

1989 Mahre Drive

Park City, UT
84098

 

(d)     TENANT’S MAILING ADDRESS:

 

Attn:
Robert Altieri, President

344
N. Charles Street

Baltimore,
MD 21201

 

With
a Copy to: William C. Rogers, Jr., Esq.

 

 

Rogers, Moore &
Rogers, LLP

6 S. Calvert
Street

Baltimore, MD
21202

 

(e)     TENANT’S TRADE NAME (Section 17):
Carrollton Bank

 

(f)      PREMISES (Section 2): as shown on  Exhibit A-l.

 

(g)     LAND AREA
OF THE PREMISES: Approximately 42,000 square feet + of land area; as
shown on Exhibit A.

 

(h)     LEASE
TERM (Section 3):

 

Term:
Twenty (20) years plus four (4) five (5) year options.

Rent
Commencement Date: (see Section 3).

Termination
Date: (see Section 3).

 

(i)      FIXED RENT (Section 4): See Section 4.

 

(j)      SECURITY
DEPOSIT (Section 5):   Deleted.

 

(k)     GROSS
LEASABLE AREA OF THE CENTER (Section 2): See Section 2(e).

 

(l)      PERMITTED
USE (Section 17): Tenant intends to use and occupy the Premises for the purpose
of operating a financial services center and all other uses associated with
such a business.. In no event shall Tenant be precluded from using the Premises
for all banking, residential mortgage lending and related regulatorily approved
financial services permissible for banks and bank-affiliated companies
(“Financial Services”). Tenant may use the Premises for any use permitted in Section 17(a) hereof.

 

(m)    TAX CHARGE (Section 12): See Section 12.

 

(n)     COMMON
AREA CHARGE (Section 14): See Section 14.

 

(o)     EXHIBITS:
The Exhibits and Schedules attached to this Lease are hereby
incorporated in and made a part hereof.

 

	
  EXHIBIT A

  	
   

  	
  Center Site Plan

  
	
  EXHIBIT A-l

  	
   

  	
  Premises Site Plan

  
	
  EXHIBIT A-2

  	
   

  	
  Legal Description

  
	
  EXHIBIT B

  	
   

  	
  Construction
  Requirements

  
	
  EXHIBIT B-1

  	
   

  	
  Description of
  Landlord’s Work and Tenant’s Work

  
	
  EXHIBIT B-2

  	
   

  	
  Signage Criteria

  
	
  EXHIBIT C 

  	
   

  	
  Form of Subordination
  and Non-Disturbance Agreement

  
	
  EXHIBIT D

  	
   

  	
  Rules and
  Regulations

  

 

2

 

2.             Premises.

 

(a)           Landlord hereby demises and lets unto Tenant and
Tenant hereby leases and takes from Landlord the premises (the “Premises”)  constituting a part
of the Center development identified in Section 1(b) (“Center”)  and more particularly shown on Exhibit A-1  and legally described
in the legal description for the Premises attached hereto as Exhibit A-2  together with all
rights, privileges, easements and appurtenances thereto, subject to the terms
and conditions herein contained. Within thirty (30) days after the Tenant opens
for business, the Tenant shall provide the Landlord with an as-built survey of
all the land and improvements inside of the perimeter/curb line and/or outside
loading area line of the Premises as approximately shown on Exhibit A-1,  including, without
limitation, all landscaping, lights, loading facilities, paved parking areas
and drive-aisles within the Premises. Tenant shall use commercially reasonable
efforts to retain Morris & Ritchie Associates, Inc. to complete
the survey. The Landlord shall have the right to review and approve the survey.
Once the parties have reached agreement on the survey in the areas for Exhibits
A-1 and A-2, the parties shall execute an amendment to this Lease substituting
a new legal description and site plan for those attached hereto as Exhibit A-1  and Exhibit A-2.  Landlord has
approved the Tenants Improvements as set forth in exhibit B and B-l.

 

(b)           The locations and boundaries of the
Premises and the Common Areas (as hereinafter defined) are shown on Exhibit A  and Exhibit A-1.  Subject to the
provisions of Section 2(f) hereof,
Landlord reserves the right, outside of the Premises, to increase, reduce or
change the number, size, height, layout or locations of the buildings and/or
any of the Common Areas now or at any time hereafter forming a part of the
Center, in any manner whatsoever as Landlord may in its discretion, from time
to time deem proper; provided, however, that Landlord shall not, without
Tenant’s prior written consent, make any change that materially and adversely
affects the ingress and egress to the Premises from Belair Road  or reduce the visibility
of Tenant’s building and signage in any way (except that Landlord may construct
other improvements in the approximate location shown on Exhibit A  without first receiving
Tenant’s written consent), which consent shall not be unreasonably withheld,
conditioned or delayed. Landlord also reserves the right (i) to change the
name of the Center at any time after notice to Tenant; and (ii) to
construct or reconstruct the Center at various times in various sections or
phases, provided such does not impair Tenant’s ability to conduct its business
in the ordinary course and does not obstruct the visibility of Tenant’s
signage.

 

(c)           Tenant shall also have a non-exclusive
right in common with other tenants in the Center, their customers, employees
and invitees to use all Common Areas located within the Center. All Common
Areas shall be subject to the exclusive control and management of Landlord.
Landlord hereby expressly reserves the right, from time to time (i) to
construct, maintain and operate lighting and other facilities, equipment and
signs on all of the Common Areas; (ii) to police the Common Areas; (iii) to
change the area, level, location and configuration of the parking areas and
other facilities outside of the Premises, provided that Tenant’s customers
shall have ample parking convenient to the Premises; (iv) to restrict
parking by tenants and other occupants of the Center outside of the Premises;
and (v) to establish, modify and enforce reasonable rules and
regulations with respect to the Common Areas and the use to be made thereof.
Landlord shall, in a manner which Landlord shall determine to be reasonable,
operate, manage, equip, decorate, light and maintain the Common Areas and keep
same in good condition and repair, free of trash, ice and snow, and Landlord
shall have the sole right and exclusive authority to employ and discharge all
personnel with respect thereto.  The term

 

3

 

“Common Areas” as used in this Lease shall mean all
areas, space, facilities, equipment, signs and special services furnished in
the Center and designated by Landlord for the general use or benefit, in
common, of occupants of the Center, including Tenant, its officers, agents,
employees and customers, which facilities may include, but are not limited to,
the parking areas, sidewalks, walkways, service areas, roadways, loading
platforms, drainage facilities, retention ponds, utilities serving more than
one tenant in the Center; plumbing systems, ramps, landscaped area, and other
similar facilities available from time to time. The Common Areas shall also
include: (i) the entrances and exits from the Center installed, and (ii) the
common utility easements serving the Center. Tenant’s rights and obligations
with respect to the Common Areas, shall
at all times be subject to easements and restrictions of record, including but
not limited to the Declaration of Restrictions, Covenants, Easements and
Maintenance and Cost Sharing Agreement (hereinafter the “Reciprocal Easement Agreement”)
dated.

 

(d)           For purposes of this Lease, the term “Premises” includes the improvements to be
constructed by Tenant pursuant to Exhibits
B  and B-l  (excluding
Tenant’s trade fixtures and equipment installed therein) and all alterations,
repairs, replacements and modifications thereto. Tenant hereby grants a
non-exclusive right in common with Landlord and other tenants in the Center,
their customers, employees and invitees to use all Common Areas located within
the Premises, except Tenant may post signs designating 21 parking spaces (2
handicap and 19 regular) as highlighted in yellow on attached Exhibit A-l
as limited for the use of Tenant’s personnel or customers only.

 

(e)           For purposes of this Lease, the term “Gross Leasable Area of the Center” shall
be deemed to mean the total usable land area in square feet of those portions
of the Center (as existing or as the same may at any time hereafter be
designated, enlarged or reduced) which are exclusively appropriated for use by
lessees or tenants of the Center whether constructed, leased or vacant. On the
date of this Lease the Gross Leasable Area of the Center (including the
Premises) is estimated to be (when constructed) approximately 11,919 square
feet. For purposes of this Lease other than Taxes (as hereinafter defined), the
term “Tenant’s Proportionate Share” or
“Proportionate Share” shall be
deemed to mean a fraction, the numerator of which shall be the gross square
footage of the Improvements (as defined in Exhibit B
hereto) on the Premises and the denominator of which shall be the Gross
Leasable Area of the Center. This shall be stated as 19.4716%.  This number cannot be increased by action of
the Landlord or other tenants, but can be reduced, based on any change by
Landlord or other tenants of the Center. This number can be increased based on
Tenant’s actions.

 

(f)               Landlord herewith grants Tenant, its
successors and assigns a nonexclusive easement appurtenant to the Premises over
the Common Areas of the Center for the construction, installation, use and
maintenance of any utility lines necessary to serve the Premises, provided such
will not adversely affect traffic flow or access to the balance of the Center.
If any governmental agency requires dedication of the above described utility
easements, Landlord and Tenant agree to join in such dedication. After
completion of any construction or maintenance by Tenant, which shall be
accomplished as expeditiously as possible, Tenant covenants to repair or
replace all concrete, asphalt and landscaping to the condition existing prior
to excavation by Tenant except as modified by the work performed by Tenant.
Landlord agrees to maintain in good condition and repair any utility lines not
dedicated to a public authority which serve the Center and the Premises; provided,
however, that Tenant shall be solely responsible for the cleaning and repair of
any sewer lines of which it has exclusive use of between the Premises and

 

4

 

the public lines
in the bed of Belair Road necessitated by Tenant’s misuse of the sewer lines
located in the Center. Tenant’s use, maintenance or repair of any utilities
servicing the Premises shall at all times be subject to the provisions of the
Reciprocal Easement Agreement.

 

3.             Landlord’s Work.

 

On or about
August 1, 2007, Landlord shall provide the Leased Premises with the majority
of Landlord’s Work completed and in adequate condition for Tenant to commence
the construction of its building improvements. Tenant acknowledges that several
items as part of Landlord’s Work, such as the sidewalks, curbing, and
landscaping, will be completed by Landlord simultaneously as Tenant is
completing its improvements. In no event shall the Lease Term begin until such
time that Landlord’s Work shall be substantially completed.

 

Landlord’s Work includes:

 

(a)   Completing the construction of the finished pad site
for Tenant’s building in good workmanlike manner in the dimensions and location
shown on Exhibit A.

 

(b)   Stubbing all appropriately sized utilities for Tenant’s
intended use to within five feet of Tenant’s building, including public
sanitary sewer, water, electric, telephone, and cable.

 

(c)   Completion of the required sidewalks and curbing on
the Premises.

 

(d)   Grading and compacting of soil to within 5% of ASTM
Standards for soil conditions and compaction as certified by a licensed
engineer.

 

(e)   Base paving of parking lot and the required access
areas to the Premises.

 

(f)    Final surface paving (including painting and
installation of signage) to be promptly completed after completion of Tenant’s
building.

 

4.             Term.

 

(a)           Tenant shall have and hold the Premises for a
Preliminary Term (commencing after delivery of the Pad site to Tenant through
commencement of the Lease Term) and the Lease Term, unless sooner terminated or
extended as hereinafter provided. The Preliminary Term of the Lease will begin
upon lease execution and will continue until the date immediately prior to the
date of commencement of the Lease Term. The “Lease
Term” shall run for a period of twenty (20) years and shall commence
on the date (the “Rent Commencement Date”)  which
is the earlier of (i) one hundred eighty (180) days following the Pad
Delivery Date (as defined in Section 15) or (ii) the date Tenant
commences operations from the Premises. In the event the Rent Commencement Date
is on a day other than the first day of a calendar month, then the Lease Term
shall continue in full force and effect for the period from the Rent
Commencement Date to the first day of the calendar month next succeeding plus
the period of the term set forth in Section 3.  When
such Rent Commencement Date is determined, Landlord shall deliver to Tenant a
notice which confirms the commencement and expiration dates of the Lease Term.
As used in this Lease, the term “Lease Year” shall
mean the twelve (12) full calendar months following the Rent Commencement Date
and each successive twelve (12) month period thereafter.

 

5

 

(b)                                 Provided Tenant is not then in default
under the terms of this Lease, beyond any applicable grace period for curing
the same, Tenant shall have the option to extend the term of this Lease for
four (4) additional periods of five (5) years (herein referred to
individually as “Extended Term” and
collectively as the “Extended Terms”)  upon
all of the same terms, covenants and conditions of this Lease. In order to
exercise one of the foregoing options, Tenant must notify Landlord of such
exercise at least nine (9) months, but in no event earlier than two (2) years,
prior to the expiration of the Lease Term or the then exercised Extended Term
as the case may be. It is the intention of the parties hereto to provide for a
maximum Lease Term expiring forty (40) years after the Rent Commencement Date,
should Tenant exercise all of its options for Extended Terms, but nothing
herein shall require the Tenant to exercise such options.

 

5.                                       Fixed Rent. Tenant covenants and agrees to pay to Landlord,
without previous demand therefor and without any setoffs or deductions
whatsoever, the Fixed Rent as set forth hereinbelow, payable in equal monthly
installments, in advance, on or before the first day of each and every calendar
month throughout the Lease Term and the Extended Terms. In the event the Rent
Commencement Date is other than the first day of a calendar month, the Fixed
Rent (as well as all Additional Rent and charges reserved hereunder) for the
portion of the then current calendar month shall be prorated on the basis of a
thirty (30) day month and shall be paid immediately on the Rent Commencement
Date.

 

	
  Lease
  Years

  	
   

  	
  Annual Fixed Rent

  	
   

  	
  Monthly Payment of Fixed

  Rent

  	
   

  
	
  Lease
  Years 1 – 5

  	
   

  	
  $

  	
  155,000.00

  	
   

  	
  $

  	
  12,916.67

  	
   

  
	
  Lease
  Years 6 – 10

  	
   

  	
  $

  	
  178,250.00

  	
   

  	
  $

  	
  14,854.17

  	
   

  
	
  Lease
  Years 11 – 15

  	
   

  	
  $

  	
  204,987.50

  	
   

  	
  $

  	
  17,082.29

  	
   

  
	
  Lease
  Years 16 – 20

  	
   

  	
  $

  	
  235,735.62

  	
   

  	
  $

  	
  19,644.63

  	
   

  
	
  First
  Extended Term

  	
   

  	
  $

  	
  271,095.96

  	
   

  	
  $

  	
  22,591.33

  	
   

  
	
  Second
  Extended Term

  	
   

  	
  $

  	
  311,760.35

  	
   

  	
  $

  	
  25,980.03

  	
   

  
	
  Third
  Extended Term

  	
   

  	
  $

  	
  358,524.00

  	
   

  	
  $

  	
  29,877.00

  	
   

  
	
  Fourth
  Extended Term

  	
   

  	
  $

  	
  412,303.06

  	
   

  	
  $

  	
  34,358.58

  	
   

  

 

The first
installment of Fixed Rent due hereunder shall be paid to Landlord upon
execution of this Lease and shall be returned to Tenant if Tenant terminates
the Lease under Section 6 below.

 

6.                                       Due Diligence Period. Tenant shall have a ninety (90) day
“Inspection Period” from the date of execution of this Lease in which to
inspect and investigate the Premises and perform soil and other tests thereon;
review the laws applicable to the Premises and the development thereof and the
availability and probability of Tenant’s receipt of all necessary governmental
approvals; obtain surveys and other similar materials; obtain site plan
permits; obtain any title insurance commitment therefor; review the
availability of utilities and drainage facilities and easements therefor;
review the impact of the Laws and/or conditions of the site on the economic or
other

 

6

 

feasibility of
constructing and operating the Tenant’s Improvements on the Premises; review
the access to the Premises and matters such as curb cuts, crossovers, traffic
signalization and the like; review any environmental conditions of the
Premises; and review any other matters relating to Tenant’s anticipated use of
the Premises and the Tenant’s Improvements and/or the value, cost, utility or
feasibility thereof. Tenant may terminate this Lease by written notice given to
Landlord on or before 5:00 p.m. of the last day of the Inspection Period
if Tenant is, for any reason, dissatisfied with the results of the
aforementioned inspections, investigations, tests, reviews, applications, or
other matters, in which event the parties shall have no further rights or
liabilities hereunder. Absent such notice being delivered in a timely manner,
this Lease shall be and remain in full force and affect.

 

7.                                       Additional Rent. In addition to the Fixed Rent, all
other payments to be made by Tenant hereunder to Landlord shall be deemed “Additional Rent” and, unless otherwise
provided, shall be due and payable within twenty (20) days after receipt by
Tenant of such itemized bill setting forth the amount due and the computation
of Tenant’s Proportionate Share, if applicable. Landlord shall have the same
rights and remedies upon Tenant’s failure to pay any Additional Rent as for the
non-payment of the Fixed Rent.

 

8.                                       Past Due Rents.

 

(a)                                  If Tenant shall (i) fail to pay any
Fixed Rent within ten (10) days after the same is due and payable, (ii) fail
to pay any Additional Rent or other charges within the time frame they are due,
then Tenant shall also pay to Landlord a late payment fee equal to five percent
(5%) of the laterent.

 

(b)                         In the event that any payment made by
Tenant is returned to Landlord for insufficient funds, Tenant shall pay to
Landlord a processing fee of Seventy-Five Dollars ($75.00) per returned
payment, in addition to all other sums due and owing under this Lease.

 

(c)                          None of the provisions of this Section 8 shall be construed to extend
the date for payment of any payments of Fixed Rent or Additional Rent hereunder
or to limit Landlord in the exercise of its rights and remedies under this
Lease.

 

(d)                         All payments and all statements required
to be tendered by Tenant to Landlord shall be delivered to Landlord or
Landlord’s designee at the Landlord’s mailing address set forth in Section 1(c) hereof,
or at such other place as Landlord may from time to time designate in writing.

 

(e)                                  If Tenant shall fail to make any required
payment after expiration of all grace periods and any applicable notice and
cure period, such unpaid amounts shall bear interest from the date of the
expiration of the notice and cure period at the rate of 7.00% per annum or the
highest rate permitted by applicable law whichever is less.

 

(f)                                    All Fixed Rent and Additional Rent due
hereunder shall be deemed “rent.”

 

9.                                        Leasehold Mortgages.

 

9.1.                              Landlord hereby consents to the execution
and delivery by Tenant of one or more Deeds of Trust from time to time
(including indemnity deeds of trust) on Tenant’s leasehold

 

7

 

interest only (the
“Leasehold Mortgage”,  the
holder thereof is herein referred to as a “Leasehold
Mortgagee”);  and agrees that such execution and
delivery will not constitute a default by Tenant under the Lease. The foregoing
consent shall not be deemed to be a consent by Landlord to any encumbrance of
the Property by the Tenant.

 

9.2.                              With respect to any Leasehold Mortgagee
or other person providing financing as to which Landlord shall have been given
notice, the following shall apply notwithstanding any other provision of this
Lease to the contrary:

 

(a)                                  No voluntary cancellation, termination,
surrender or modification of this Lease shall be effective as to any Leasehold
Mortgagee unless notice is given to such Leasehold Mortgagee at least thirty
(30) days prior to such action.

 

(b)                                 Landlord, upon providing Tenant any
notice of intent to terminate this Lease after a default shall, at the same
time, for such notice to be effective and enforceable, endeavor to provide a
copy of such notice to the Leasehold Mortgagee; Tenant shall provide the
Leasehold Mortgagee with a  copy of any such notice of intent
to terminate after a default upon receipt from Landlord. From and after such
notice has been given to the Leasehold Mortgagee, the Leasehold Mortgagee shall
have the same period, after the giving of such notice upon it, for remedying
any default which is the subject matter of such notice of intent to terminate,
or causing the same to be remedied, as is given Tenant after the giving of such
notice to Tenant, to remedy or cause to be remedied the defaults, which are the
subject matter of such notice specified in any such notice of intent to
terminate. Landlord shall accept such performance by or at the instigation of
the Leasehold Mortgagee as if the same had been done by Tenant. Tenant
authorizes the Leasehold Mortgagee to take any such action at the Leasehold
Mortgagee’s option and Landlord and Tenant do hereby authorize entry upon the
Premises by the Leasehold Mortgagee for such purpose.

 

(c)                                  No Leasehold Mortgagee shall become
liable under the agreements, terms, covenants or conditions of this Lease
unless and until it becomes the owner of the leasehold estate. In the event
that the Leasehold Mortgagee becomes the owner of the leasehold estate, any
assignment of the entire interest in this Lease by the Leasehold Mortgagee as
owner of the leasehold estate shall be subject to Section 22 of this Lease.

 

(d)                                 In no event shall Landlord be required to
subject or subordinate its fee title to the Premises to secure any Leasehold
Mortgage entered into by Tenant or other loan or financial obligations incurred
by Tenant and Tenant shall have no authority, express or implied, to create or
place any mortgage or deed of trust of any kind or nature whatsoever upon
Landlord’s fee title in the Premises.

 

(e)                                  Nothing herein contained shall require
any Leasehold Mortgagee or its nominee to cure any default by Tenant hereunder.

 

10.                                Recapture.                                       Deleted.

 

8

 

11.                                 Utilities.

 

(a)                           Subject to the Landlord’s obligations
under Exhibit B-1  and
Landlord’s Work under Paragraph 3 hereof, Tenant shall install and use the
utilities serving the Premises in accordance with the criteria set forth herein
and the rules and regulations of the public or private utility company or
the governmental agency supplying the same. Landlord shall not be liable for damages
or otherwise for any interruption in the supply of any utility to the Premises,
if caused by a party other than Landlord, its agents, contractors, or
employees, nor shall any such interruption constitute any ground for an
abatement of any of the rents reserved hereunder except in the event of the
grossly negligent acts by Landlord or Landlord’s agents, contractor or employees.

 

(b)                          Tenant shall make application for, obtain
directly, be solely responsible for and promptly pay directly to the public or
private utility company or governmental agency, whichever is supplying the
same, as and when the same become due and payable, all charges for water and
sewer (if separately metered), electricity, gas, telephone, and any other
utility used or consumed in the Premises, including, without limitation, all
connection fees.

 

(c)                           In the event Landlord elects or is
required to supply the utilities used or consumed in the Premises, Tenant
agrees to purchase from and pay Landlord for the same, as Additional Rent, at
the rates which the applicable public or private utility company charges
Landlord for furnishing such utilities (reduced by any commissions, fees,
discounts, or similar consideration received by Landlord or its agents or
assignees), plus applicable sales taxes thereon. Landlord shall have the right
to enter onto the Premises for the purpose of reading any submeter for utilities
supplied by Landlord. Landlord reserves the right to discontinue the furnishing
of any such utilities provided such utilities are provided by such other
private or public utility company. Landlord reserves the right to supply any
utility service to the Premises provided Tenant shall not be required to pay
more for such service than it would pay if acquired directly from the utility
company. If Landlord elects to supply utilities or to discontinue supplying
utilities, Landlord shall (i) supply such utilities without interruption
during the change of providers; (ii) install all meters for the utilities
it provides and remove any meters which are no longer needed.

 

12.                                 Taxes.

 

(a)                           As used herein, the term “Tax Charge” shall mean Tenant’s
Proportionate Share of all real estate taxes and assessments and other real
property (including improvements thereon) related governmental levies and
charges of any kind and nature excluding, however, all estate, inheritance,
capital stock, succession, gift, transfer (unless related to recording of this
Lease), franchise, excess profits, gross receipts and income taxes of Landlord
which may be imposed against the land area of the Center, and against the
buildings and all other improvements located on the Center during the Lease
Term (collectively, “Taxes”).
Tenant shall pay to Landlord, as Additional Rent, the Tax Charge within 30 days
of being billed same by Landlord, based on the actual tax bill. Tenant’s Tax
Charge shall be based on the taxes being paid before a penalty is incurred or a
discount lost. As used herein, the term “Taxes” shall
also mean and include all costs and fees (including reasonable attorneys’ fees
and/or the reasonable fees of any tax consultant retained by Landlord) incurred
by Landlord in reasonably contesting such taxes, levies and charges.

 

9

 

(b)                          Tenant’s Proportionate Share with regard
to Taxes attributable to land shall be computed and determined as a fraction,
the numerator of which shall be the total square footage of the land area of
the Premises (42,000 square feet) and the denominator of which shall be the
total square footage of the land area of the Center (95.693 square feet, as the
same may exist from time to time. Tenant’s Proportionate Share with regard to
Taxes attributable to land is 43.89%. Tenant’s Proportionate Share with regard
to Taxes attributable to Improvements (as defined in Exhibit B)
shall be computed and determined as a fraction, the numerator of which shall be
a gross square footage of the Improvements located on the Premises (2.882
square feet), and the denominator of which shall be the Gross Leaseable Area of
all the Center (14.882 square feet, including Tenant’s Improvements) as the
same may exist from time to time. Tenant’s Proportionate Share with regard to
Taxes attributable to the Improvements is 19.3656%. Notwithstanding the
foregoing, if the Improvements on the Premises are assessed by the applicable
taxing authority separately from the improvements located on the balance of the
Center, Tenant shall pay Taxes on such Improvements in accordance with such
separate assessment and, in addition, shall pay its Proportionate Share of
Taxes on the land portion of the tax bill for the Center.

 

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

 

(d)                          If at any time during the Lease Term, a
tax or excise on rents or other tax, however described (except any estate,
inheritance, capital stock, succession, gift, transfer [unless related to
recording of this Lease], franchise, gross receipts, income or excess profits
taxes imposed upon Landlord) is levied or assessed against Landlord by any
lawful taxing authority on account of Landlord’s interest in this Lease or the
rents reserved hereunder, as a substitute in whole or in part, or in addition
to, the Taxes hereinbefore described, Tenant agrees to pay Landlord, as
Additional Rent, the amount of such tax, excise on rents or other tax. In the
event any such tax or excise on rents or other tax, however described, is
levied or assessed directly against Tenant by any lawful taxing authority on
account of Tenant’s interest in this Lease or the leasehold estate hereby
created or the rents to be paid by Tenant hereunder, then Tenant shall be
responsible therefor and agrees to pay the same before delinquency and provide
evidence thereof to Landlord.

 

(e)                           Tenant shall pay, before delinquency, all
taxes assessed against any personal property of any kind owned or used by
Tenant in or about the Premises and provide evidence thereof to Landlord.

 

(f)                             With respect to any Taxes for which
Tenant is responsible hereunder, Landlord shall provide Tenant a copy of an
official tax bill with the calculation of Tenant’s Tax Charge..

 

(g)                          Landlord shall pay, before delinquency, all
taxes assessed against the Center.

 

13.                                 Landlord’s Insurance

 

(a)                           If insurance premiums for the Center are
increased due to Tenant’s conduct or the nature of Tenant’s business conducted
on the Premises, upon proof of same, Tenant shall pay the full cost of such
increase upon demand by Landlord.

 

10

 

(b)                          Tenant shall pay to Landlord Tenant’s
Proportionate Share of the cost of all insurance carried by Landlord covering
the Common Areas of the Center, including, without limitation (i) public
liability, personal and bodily injury and property damage liability and
automobile coverage, (ii) fire and extended coverage, vandalism and
malicious mischief and all broad form coverages covering the improvements in
the Center, other than any buildings in the Center, and (iii) sign
insurance, all in limits maintained by similar first class Centers in this
regional area. Tenant’s initial Proportionate Share of Landlord’s insurance is
currently estimated to be thirty three cents ($.33) per square foot of the
Tenant’s Building.

 

14.                                 Maintenance of Common Areas.

 

(a)                          Landlord shall keep, or cause to be kept,
the Common Areas clean, reasonably free of ice and snow, in good condition and
repair; all in a manner consistent with the practices of first-class retail
Centers. In consideration of Landlord’s undertaking the operation and
maintenance of the Common Areas, Tenant covenants and agrees to pay to
Landlord, subject to adjustment as hereinafter provided, a monthly sum equal to
one-twelfth (1/12) of Landlord’s reasonable estimate of Tenant’s Proportionate
Share of the annual costs and expenses of operating, maintaining and cleaning
the Common Areas within those portions of the Center being so operated,
maintained and cleaned by or on behalf of Landlord for the then current year;
such monthly payment to be Additional Rent payable in advance at the same time
and place as the Fixed Rent. If Tenant’s Proportionate Share of such Common
Area Charges is more than Tenant’s payments so made, Tenant shall, within
thirty (30) days thereafter and as Additional Rent, pay to Landlord the
difference as the balance of its share of the Common Area Charges and, on the
other hand, if Tenant’s Proportionate Share is less than Tenant’s payments so
made, Landlord shall refund such excess to Tenant within thirty (30) days
thereafter. Tenant’s Common Area Charges shall not increase, year to year, by
more than 5% from the Charges for the prior year. Landlord shall use reasonable
business efforts to keep down the costs of the Common Areas maintenance.
Landlord shall promptly remove all snow and ice from the Premises so as to not
interfere with Tenant’s business.

 

(b)                         The “Common
Area Charges” shall include, by way of example and not by
limitation, all normal and customary costs and expenses of (i) operating,
maintaining, repairing, landscaping, seasonally decorating, cleaning, removing
trash, sweeping, striping, and removing snow, ice and debris from said Common
Areas, provided that in no event shall Common Area Charges include the paving,
landscaping, striping and lighting of the Common Areas conducted as part of
Landlord’s initial construction of the Center, provided that any resurfacing or
parking lot overlay shall not be deemed a replacement hereunder, (ii) lighting,
maintenance, repair and replacement of any Center identification and
directional signage, (iii) water, sewer and electricity charges for Common
Area usage, (iv) sales, service and/or other use taxes on materials,
equipment, supplies and services and license and permit fees required for the
operation and maintenance of the Common Areas, (v) maintenance and repair
of storm water management systems serving the Center, including retention or
detention ponds, and other utility systems and maintenance and repair of
security systems and services and fire protection equipment and sprinkler
alarms and (vi) an administrative fee of ten percent (10%) of the Common
Area Charges for Landlord’s administration and operation of the Common Areas.

 

11

 

(c)                          Landlord shall cause the Premises and the
Common Areas to be lighted during the period from 1/2 hour before sunset til
10pm. Landlord shall keep all signage illuminated 24 hours every day, unless
prohibited by applicable law or regulation.

 

(d)                         Tenant shall provide, at its sole cost, a
trash container (dumpster) which the Landlord or governmental agencies may
require. Such trash container shall be located in a dumpster  area shown
on Exhibit A,  and
Tenant shall keep the dumpster in a sanitary condition and  shall empty it at
least two (2) times per week, or more frequently if reasonably necessary
to eliminate odors. Additionally, notwithstanding the foregoing provisions of Section 14(a) above
to the
contrary, Tenant, and not Landlord, shall be solely
responsible for maintaining, repairing, and  replacing the  screening solely
around Tenant’s trash container, if same is on the Premises, and shall be solely responsible for
maintaining, repairing, and replacing all sidewalk landscaping and lighting (but not light fixtures)
located on the Premises. Tenant shall not permit undue accumulations of garbage, trash, rubbish, or other refuse, shall
remove the same at its own expense, and
shall keep such refuse in proper rodent-proof containers within the
Premises until called for to be removed.
All garbage, trash, and other refuse which is kept in such rodent-proof containers shall be bagged and
securely tied before being placed in the trash container described above. Tenant shall use reasonable
efforts to keep the area around the trash container located outside of the fenced enclosure trash
and litter free and reasonably stain free (which may require power-washing by Tenant) between the times that
Tenant cleans the Common Areas; and shall keep the area around the trash container located inside the fenced
enclosure and between the trash container
enclosure area and the Premises trash and litter free on a daily basis.

 

15.                                 Landlord’s Pad Work. Landlord shall deliver to Tenant, and
Tenant agrees to accept from the Landlord,
possession of the Premises upon substantial completion of the portion of Landlord’s pad work which pertains to
the Premises as described in the Description of Landlord’s and Tenant’s Work attached hereto and
made a part hereof as Exhibit B-1
(“Landlord’s
Pad Work”), which shall be the date on which Landlord
notifies Tenant in writing that such Landlord’s
Work with respect to the Premises is substantially complete as described
in Exhibit B-1  hereof,
with  the
exception of such work Landlord cannot complete until Tenant performs necessary  portions
of its work (the “Pad Delivery Date”).

 

16.                                 Tenant’s Improvements and Installations.

 

(a)                          In addition to Tenant’s Work as provided
in Exhibits B  and B-1, Tenant shall fully  construct
Tenant’s Building and fully equip the Premises with all trade fixtures and equipment,  lighting
fixtures, furniture, furnishings, floor coverings and any other fixtures and equipment  necessary
for the proper operation of Tenant’s business as well as any signage permitted  by
this Lease, all of which shall be in good condition and in working order.

 

(b)                         Excluding all improvements directly
related to Tenant conducting business in the ordinary course (however, in no
event shall the Tenant remove any items from the Premises if such removal shall
cause damage to the Premises or its improvements), all betterments and
improvements in or upon the Premises including, without limitation, all
carpeting, floor coverings, attached shelving, lighting fixtures, wall covering,
other fixtures and heating, ventilation and air conditioning equipment, shall,
at the option of Landlord, become the property of Landlord and shall remain
upon and be surrendered with the Premises as a part thereof at the expiration
or earlier termination of the Lease Term; provided, however, that Tenant’s
personal property, furniture, furnishings, and trade fixtures shall remain the
property of Tenant and shall

 

12

 

be removed prior to
expiration of the Lease Term. Any trade fixtures, equipment and other personal
property (exclusive of lighting, electrical, heating and air conditioning)
placed in or upon the Premises by Tenant shall remain Tenant’s property with
the right to remove the same at any time during the Term of this Lease,
provided that Tenant shall repair any damage to the Premises caused by such
removal. Landlord, if requested by Tenant, agrees to execute such documentation
waiving its rights to Tenant’s personalty and to all rights of levy for distraint
for rent against same as shall be required by any lender of Tenant; provided
any damage caused by, or resulting from, the removal of any trade fixtures,
equipment or other personal property shall be promptly repaired by Tenant or
the party entitled to remove same. Tenant shall remove such trade fixtures,
equipment and personal property from the Premises on or before ten (10) days
after the expiration or earlier termination of the Lease and shall repair any
damage to the Premises caused by such removal. Any of Tenant’s trade fixtures
remaining on the Premises after the expiration of such period shall be deemed
abandoned by Tenant or its subtenants or licensees and shall become the
property of Landlord without payment therefor.

 

(c)                          Technology/Satellite Dish: Tenant shall
be allowed to install, maintain, repair, and replace satellite dish(es) and
other technology apparatus on the roof of the building, the north or west walls
of the building, in a completely screened location on the ground, or in such
other location as approved by Landlord, such approval not to be unreasonably
withheld, conditioned, or delayed.

 

(d)                         Tenant shall pay to Landlord the sum of
ninety five thousand dollars ($95,000.00) as partial payment on the site costs
incurred by Landlord for the Center. Such payment shall be made to Landlord
upon substantial completion of Landlord’s Work and delivery of possession of the
Premises to Tenant.

 

17.                                 Use of Premises.

 

(a)                          Tenant’s use of the Premises, inclusive
of any subletting or assignment, shall be for any lawful use consistent with a
neighborhood shopping center within the Baltimore-Washington Metropolitan Area,
but shall specifically exclude the following: (1) any exclusives granted
to tenants within the Center by Landlord or any then current uses within the
Center at the time of assignment or subletting; (2) any nude or semi-nude
dancing, bar, tavern, or lounge; (3) sale or rental of “adult” or “x-rated
videos” and related products; and (4) the display, sale, or treatment of
any drug paraphernalia services or patient related facilities. Prior to Tenant operating
for business in the Premises, Tenant shall obtain a certificate of occupancy/nonresidential
use permit from a proper governmental authority approving Tenant’s use of
Premises.

 

(b)                         Tenant shall keep and maintain the
interior and the exterior of the Premises and the adjacent parking areas in a
clean, safe, sightly, orderly, and sanitary condition.

 

(c)                          So long as Tenant is operating from the
Premises for Financial Services, Tenant shall have the exclusive right to each
of the following: (1) operate a Financial Services business, (2) have
automated teller machines, and (3) have Financial Services drive thrus in
the Center.

 

13

 

18.                                 Operation of Business.

 

(a)                          Tenant agrees (i) to conduct
Tenant’s business in the Premises in a reputable manner; (ii) to keep and
maintain the Premises and Tenant’s personal property and trade fixtures in a
neat, clean, sanitary and safe condition; (iii) to apply for, secure,
maintain and comply with all licenses or permits which may be required; (iv) neither
to solicit business nor to distribute advertising matter in the parking areas
or other Common Areas (which restriction shall apply to all Leases of any part
of the Center). Notwithstanding the foregoing, so long as Tenant continues to
pay all rent due hereunder in a timely manner, Tenant shall have the right to
cease operating its business from the Premises and such cessation shall not be
a default under this Lease.

 

(b)                         Tenant and its servants, employees,
agents, sublessees, licensees and concessionaires shall observe faithfully and
comply with the reasonable rules and regulations for the Center attached
hereto as Exhibit D  (“Rules and
Regulations”)  as
Landlord may from time to time adopt; provided Tenant has received prior notice
of same. Such Rules and Regulations shall be enforced non-discriminatorily
and shall not materially limit or affect any of Landlord’s covenants and
obligations hereunder.

 

19.                                 Laws, Waste or Nuisance

 

(a)                          Tenant agrees to comply with all present
and future Federal, state and local laws, ordinances, orders and regulations
affecting the Premises or the use thereof

 

(b)                         Tenant hereby agrees that Tenant, its
employees, agents, contractors or invitees shall not, at any time, cause or
permit Hazardous Material (as hereinafter defined) to be brought, stored,
manufactured, processed, treated, distributed, used or disposed of in, about or
from the Premises without the prior written consent of Landlord, which consent
shall be granted or withheld at Landlord’s discretion. Tenant shall submit with
its request for such consent an itemized list of (i) all Hazardous
Material which will be brought, stored, manufactured, processed, treated,
distributed, used or disposed of in, on or from the Premises; (ii) the
location in the Premises where such Hazardous Material will be stored: (iii) any
special storage requirements (i.e., temperature); and (iv) the purpose or
purposes for which the Hazardous Material is necessary. Tenant shall promptly
submit a revised list in the event that the information contained in the prior
list shall change. Tenant shall use, keep and store all Hazardous Material in a
safe and careful manner that complies with (1) all applicable laws and
ordinances regulating any individual Hazardous Material or Hazardous Materials
generally; (2) all instructions and guidelines given by the manufacturer
of any individual Hazardous Material; and (3) all requirements of
Landlord’s insurance carriers. As used herein, the term “Hazardous Material” shall include
petroleum products, underground storage tanks and/or any hazardous, toxic or
dangerous waste, substance or material defined as such in (or for the purposes
of the Comprehensive Environmental Response, Compensation and Liability Act,
any state “Superfund” or “Superlien” law), or any other ordinance,
code, rule, regulation, order or decree regulating, relating to or imposing
liability or standards of conduct covering such Hazardous Material as may now
or at any time hereafter be in effect. The foregoing shall not be deemed to
prohibit or restrict the use of cleaning products or other products normally
utilized in the operation of Tenant’s business provided such are utilized in
accordance with all applicable laws. No underground storage tanks shall be
installed on the Premises.

 

(c)                          Tenant further agrees not to suffer,
permit or commit any waste, nor to allow, suffer or permit any objectionable
odors, vapors, steam, water, vibrations, noises or other undesirable effects to
emanate from the Premises, or otherwise to allow, suffer or permit the

 

14

 

Premises or any
use thereof to constitute a nuisance or to interfere with the safety, comfort
or enjoyment of the Center by Landlord or any other occupants of the Center or
their customers, invitees or any others lawfully in or upon the Center.

 

20.                                 Competition. Deleted

 

21.                                 Signage. In addition to its pylon signage, if permitted by
appropriate governmental authorities and provided same does not violate any
recorded restrictions on the Center nor reduce the total signage permitted for
the Center, Tenant, at its sole cost and expense, shall be entitled to erect
maximum building and monumental pylon signage on the Premises in compliance
with the sign criteria attached hereto as Exhibit B-2
(the “Sign Criteria”).  Tenant
agrees to maintain any such sign, awning, canopy, decoration, lettering,
advertising matter or other thing in good condition and repair at all times.

 

Tenant shall have
the right, at Tenant’s expenses, to install its standard sign panel on Land
lord’s pylon and the right to change any such signage consistent with any name change
of Tenant’s name or logo, from time to time, including exterior signs on the
Premises. Tenant shall have the right to display grand opening and promotional
banners.

 

22.                                 Assignment and Subletting.

 

Except as provided
below, Tenant shall not assign the Lease or sublet the Premises without the
prior written consent of the Landlord, such consent not to be unreasonably
withheld, conditioned, or delayed. Upon Landlord’s consent to an assignment,
Tenant shall be released from all further obligations under the Lease. Tenant
shall have the absolute right to assign or sublet the Premises, without
Landlord’s consent, provided Tenant remains liable under the terms of the
Lease. The following shall not be considered an assignment and no consent shall
be required from Landlord: (i) a change in ownership of Tenant as a result
of a merger, consolidation, reorganization, or joint venture; (ii) the
sale of Tenant’s assets as a going concern only as it relates to the business
conducted on the Premises (a “Branch Sale”); (iii) a transfer of the Lease
to any entity if a regulatory agency having jurisdiction over Tenant’s business
requires that Tenant must divest itself of certain deposits and branch banking
facilities (a “Divestiture”); (iv) the sale, exchange, issuance or other
transfer of Tenant’s stock on a national exchange or between Tenant’s parent
company, if any, and any subsidiary, affiliate, related entity, or other entity
that controls, is controlled by, or is under common control with Tenant or to
any entity resulting from merger or consolidation with Tenant; (v) the
assignment of this Lease or sublease of all or any portion of the Premises to
Tenant’s parent entity, a wholly-owned subsidiary of Tenant or any other
related entity of Tenant, or to any entity which acquires Tenant through
merger, consolidation or other corporate action, or to any entity which
purchases all or any portion of the assets of Tenant; (vi) the sale or
transfer of at least ten (10) locations (including the Premises and this
Lease) in a bulk sale to one transferee; (vii) the sublet of less than
fifty percent (50%) of the Rentable
Square Feet of the Premises, in the aggregate, to one (1) or more parties;
or (viii) a collateral assignment of Tenant’s interest in this Lease to a
lender as security for any indebtedness of Tenant to the lender.

 

Tenant shall be
permitted to assign or sublet the Premises to any Permitted Use.

 

15

 

23.           Repairs and Alterations.

 

(a)         Subject to the provisions of Sections 28
and 29,
Landlord shall not be required to make any repairs or improvements of any kind
to the Premises unless caused by the negligence of it or its agents,
contractors, or employees. Landlord shall repair all defects in construction of
the Pad, parking lot, and common areas for a period of 10 years after
commencement of the Lease.

 

(b)         Except as provided above, Tenant agrees,
at Tenant’s sole cost and expense, to keep and maintain the Premises and each
and every part thereof and improvements thereon in good order and condition and
to make all repairs and replacements thereto, and to the fixtures and equipment
therein and the appurtenances thereto, including, without limitation, the windows
and window frames, doors and door frames, entrances, store fronts, signs,
showcases, if any, floor coverings, interior walls, and the electrical,
heating, ventilating, air conditioning and plumbing systems, equipment,
fixtures and facilities within the Premises. Tenant shall keep the Premises and
all improvements thereon and all signs in a first class and attractive
condition throughout the entire term of the Lease.

 

(c)         Following the initial construction of the
Tenant’s Work with respect to the Premises, Tenant shall have the right to make
alterations and improvements to the Premises from time to time; provided that
any alterations or improvements thereto of a material structural nature or
which substantially alter in any manner the exterior appearance thereof shall
be made by Tenant only in accordance with plans and specifications first
approved in writing by Landlord. The exterior elevations and exterior design
and treatment of any alterations or improvements must be architecturally
harmonious with the exterior design and treatment of the improvements
constructed on the balance of the Center. Tenant may not enlarge or expand the
building constructed initially on the Premises by Tenant without first
obtaining the prior written consent of Landlord, which consent may be granted
or withheld in Landlord’s reasonable discretion and will not be unreasonably
delayed or conditioned. Tenant covenants and agrees that it shall take no
action that shall require, in accordance with applicable governmental regulation,
more parking spaces to be provided for the Premises than are required based
upon the building initially constructed and the contemplated use thereof.
Notwithstanding anything herein to the contrary, in no event shall Landlord’s
consent to the above be considered approval by any applicable governmental
authority. No approved alteration or improvements hereunder shall be initiated
by the Tenant until all required permits and approvals from all applicable
governmental authorities have been obtained and copies of said permits and
approvals received by the Landlord together with a copy of a builder’s risk
policy naming Landlord as an additional insured.

 

24.           Failure to Repair or Perform Covenants. If Tenant shall fail to make repairs or
to perform its other obligations in accordance with the provisions of this
Lease, or if Landlord is required to make any repairs by reason of any act,
omission, or negligence of Tenant, Landlord shall have the right, at its
option, to make such repairs or to perform such obligations on behalf of and
for the account of Tenant and to enter upon the Premises for such purposes, and
Tenant agrees to pay the cost and expense thereof as Additional Rent hereunder.

 

25.           Covenant Against Liens. Tenant shall do all things reasonably necessary to
prevent the filing of any mechanics’ or other liens against the Premises by
reason of any work, labor, services or materials performed or supplied or
claimed to have been performed or supplied to Tenant, or anyone holding the
Premises, or any part thereof, through or under Tenant. Without limiting the
generality of the foregoing, Tenant agrees that the Center shall not be subject
to

 

16

 

attachment and Tenant
shall include in all contracts and subcontracts for work to be performed on
Tenant’s behalf at the Premises provisions whereby such contractor or
subcontractor acknowledges that Landlord has no liability under such contracts
and subcontracts and that such contractor or subcontractor waives any right it
may have to file a lien against or attach the Center. If any such lien shall at
any time be filed, Tenant shall either cause the same to be vacated and
canceled of record by bonding or otherwise within twenty (20) days after the
filing thereof or, if Tenant in good faith determines that such lien should be
contested, Tenant shall furnish such security as may be necessary as determined
by Landlord to release the same as a lien against the real property. If Tenant
fails to procure a release of such lien as prescribed in this Section, Landlord
shall have the right, but not the obligation, to procure a release of the lien
and charge the expense incurred in so doing (including the amount of the lien)
and reasonable attorney’s fees to Tenant as Additional Rent.

 

26.           Indemnity.

 

(a)      Tenant hereby agrees to defend, pay, indemnify and
save free and harmless Landlord from and against any and all claims, demands,
fines, suits, actions, proceedings, orders, decrees and judgments of any kind
or nature by or in favor of anyone whomsoever and from and against any and all
costs and expenses, including attorneys’ fees, resulting from or in connection
with loss of life, bodily or personal injury or property damage arising,
directly or indirectly out of or from or on account of any occurrence in, upon,
at or from the Center caused by the negligence or willful misconduct of Tenant,
its agents, employees or contractors, in, upon, at or from the Premises, any
Common Areas or the Center.

 

(b)      Landlord hereby agrees to defend, pay, indemnify and
save free and harmless Tenant from and against any and all claims, demands,
fines, suits, actions, proceedings, orders, decrees and judgments of any kind
or nature by or in favor of anyone whomsoever and from and against any and all
costs and expenses, including attorneys’ fees, resulting from or in connection
with loss of life, bodily or personal injury or property damage arising,
directly or indirectly out of or from or on account of any occurrence in, upon,
at or from the Center caused by the negligence or willful misconduct of
Landlord, its agents, employees or contractors, in, upon, at or from the
Premises, any Common Areas or the Center.

 

(c)      In addition, if Tenant breaches any of the provisions
of this Lease regarding Hazardous Material, or if the presence of Hazardous
Material on the Premises results in contamination of or damage to the Premises
or the Center by Hazardous Material, then Tenant shall indemnify, defend and
hold Landlord harmless from and against any and all claims, judgments, damages,
penalties, fines, costs, liabilities or losses which arise during or after the
Lease Term as a result of such contamination, including, without limitation,
any out of pocket expenses or costs or diminution in value losses.

 

(d)      Except as may be set forth in this Lease, neither
party shall be responsible or liable at any time to the other party, or to
those claiming by, through or under the other party, for any loss of life,
bodily or personal injury, or damage to property or business, or for business
interruption, that may be occasioned by or through the acts, omissions or
negligence of any other persons, or any other lessees or occupants of any
portion of the Center.

 

(e)      Neither party shall be responsible or liable at any
time for loss of life, or injury or damage to any person or to any property or
business of the other party, or those claiming by,

 

17

 

through or under the
other party, caused by or resulting from the bursting, breaking, leaking,
running, seeping, overflowing or backing up of water, steam, gas, sewage, snow
or ice in any part of the Premises or caused by or resulting from acts of God
or the elements, or resulting from any defect in the occupancy, construction,
operation or use of the Premises unless caused by such party’s, its agents’,
employees’, or contractors’ negligence or intentional misconduct.

 

(f)            Except to the extent set forth in Section 26(a),
Tenant expressly acknowledges that all of the foregoing provisions of this Section shall
apply and become effective from and after the Pad Delivery Date.

 

27.           Insurance and Waiver of Claims.

 

(a)           Tenant agrees to secure and keep in force from and
after the date Landlord shall deliver possession of the Premises to Tenant and
throughout the Lease Term, at Tenant’s own cost and expense: (i) Commercial
General Liability Insurance on a per occurrence basis with a limit of liability
in an amount of One Million Dollars ($1,000,000) per occurrence and Five
Million Dollars ($5,000,000.00) in the aggregate, which insurance shall
specifically insure the contractual obligations of Tenant set forth anywhere in
this Lease, (ii) Special Form Property Insurance in an amount
adequate to cover the full replacement value of all Tenant’s improvements in
the Premises so as not to be a co-insurer in the event of fire or other
casualty; (iii) Plate Glass insurance covering all plate glass in the
Premises; (iv) business interruption insurance in an amount equal to
twelve (12) months rent of Tenant at the Premises which insurance shall be
issued on an “all risks” basis (or its equivalent); and (v) worker’s
compensation insurance in statutorily prescribed limits; and (vi) product
liability insurance for merchandise offered for sale or lease from the Premises,
including (if this Lease covers Premises in which food and/or beverages are
sold and/or consumed) liquor liability coverage (if applicable to Tenant’s
business) and coverage for liability arising out of the consumption of food
and/or alcoholic beverages on or obtained at the Premises, of not less than
Three Million Dollars ($3,000,000) per occurrence and in the aggregate, which
amount shall be increased every ten (10) years by $500,000 per occurrence
and in the aggregate. All insurance to be procured by Tenant shall be issued in
the names and for the benefit of Tenant and Landlord and their respective
designees (and in the case of Landlord and its designees, as additional
insureds). All policies required under this Section shall contain the
following endorsements that such insurance may not be canceled or amended with
respect to Landlord except upon thirty (30) days prior written notice from the
insurance company to Landlord, sent by certified or registered mail. Tenant
agrees to deliver to Landlord certified copies of all policies of insurance to
be procured by Tenant within ten (10) days of the inception of such
policies and, at least thirty (30) days prior to the expiration of any such
policy. Except with regard to proceeds payable for loss or damage to trade
fixtures or personal property, the portion of the proceeds under the policy or
policies of insurance required under this Section 27
above, which represent Tenant’s improvements shall be expressly made payable in
the case of loss or damage to Landlord and Tenant jointly.

 

(b)           Each party waives all rights to recover against the
other party, its officers, directors, shareholders, partners, members, joint
ventures, employees or agents, for any loss or damage to the waiving party’s
property arising out of the acts or omissions of the released party or its
agents or employees if such loss or damage would generally be covered by a
special form property damage insurance policy (such waiver to apply even if the
damaged party does not maintain such insurance coverage). Neither Landlord nor
Tenant shall be liable to each other or any insurance company (by way of
subrogation or otherwise) that insured any such losses,

 

18

 

damages or expenses. Each
party shall use reasonable efforts to cause their respective insurers to issue
appropriate waiver of subrogation rights endorsements to all policies of
insurance carried in connection with the Premises or the Center or the contents
of either of them, and if obtained then each party shall deliver to the other
party (within a reasonable period of time after a written request for the same)
adequate written proof (for example, a policy and certificate of insurance with
attached endorsement) of the issuance of the foregoing.

 

28.           Destruction.

 

If Tenant’s building is
damaged by fire or other casualty Tenant shall immediately commence and
diligently pursue to completion the repair and restoration of the building to
the condition thereof immediately prior to such damage or destruction including
but not limited to all of the Tenant’s work. All insurance proceeds for such
damage shall be paid out on a monthly basis to Tenant as work progresses on the
restoration using AIA draw forms submitted by Tenant’s contractor and
architect. In the event of any such casualty, this Lease shall remain in full
force and effect and the parties waive the provisions of any law to the
contrary. Tenant shall not be entitled to and hereby waives all claims against
Landlord for any compensation, abatement or damage for loss of use of the whole
or any part of the Premises and/or for any inconvenience or annoyance
occasioned by any such damage, destruction, repair or restoration (except for
damage caused by the negligence and willful malfeasance of Landlord, its
agents, employees, or contractors). Any such repair or restoration of the
Premises by Tenant shall be performed in accordance with Exhibits B and B-l
herein. In the event the improvements should be damaged or destroyed by fire,
flood, tornado or by the elements or through any casualty or otherwise to the
extent that it is, in the reasonable opinion of Landlord or Tenant,
untenantable or incapable of use for the normal conduct of Tenant’s business,
and such damage or destruction occurs within the last twenty-four (24) months
of the Term or any extension or renewal period, Landlord and/or Tenant shall
have the option, exercisable within thirty (30) days following such damage or
destruction, of terminating this Lease effective upon giving written notice to
the other party; provided, however that if Landlord exercising its termination
right Tenant may vitiate such termination by exercising it’s next option to
extend the Term of this Lease, if any. In such event, Landlord’s termination
shall be null and void and this Lease shall continue in full force and effect.
In the event of such termination, Landlord shall be entitled to the proceeds of
all insurance applicable to the improvements but not the contents and Tenant
and it’s insurance companies shall promptly pay over same to Landlord.

 

29.           Condemnation.

 

(a)      If a substantial portion of the Premises shall be
acquired or taken by eminent domain for any public or quasi-public use or
purpose or by private purchase in lieu thereof, or if a taking substantially
impairs reasonable ingress/egress to Premises, then Tenant shall have the right
to terminate this Lease and the term hereof shall automatically cease and
terminate as of the date of title vesting in such proceedings. For purposes of
this provision, “a substantial portion of the Premises” shall be deemed to have
been taken if such taking in the reasonable judgment of Tenant shall render the
Premises and that portion of the Common Areas not so taken unsuitable for the
purposes for which the Premises were leased.

 

(b)     If any part of the Premises shall be so taken and this
Lease shall not be terminated, as aforesaid, if the conduct of business in the
ordinary course are in compliance with the law, then this Lease and all of the
terms and provisions thereof shall continue in full force

 

19

 

and effect, except
that the Fixed Rent shall be reduced in the same proportion that the total
square footage of the Premises taken bears to the original total square footage
of the Premises. Tenant shall, upon receipt of the award in condemnation, make
all necessary repairs or alterations to restore the portion of the Premises
remaining to as near its former condition as the circumstances will permit, and
Landlord shall, upon receipt of the award in condemnation, make all necessary
repairs or alterations to restore the Common Areas to as near their former
condition as the circumstances permit; provided, however, Landlord’s
obligations to restore shall be limited to the extent of the condemnation
proceeds received by Landlord therefor. Landlord shall make available to Tenant
for restoration of the Premises such portion of any award payable to Landlord
on account of loss or damage to the improvements. For purposes of this
provision, “a substantial portion of the Premises” shall be deemed to have been
taken if such taking in the reasonable judgment of Tenant renders that portion
not so taken unsuitable for the purposes for which the Premises were leased.

 

(c)      Subject to Section 29(d) below,
if this Lease is terminated as a result of any condemnation, all damages or
compensation awarded or paid for any such taking, whether for the whole or a
part of the Premises shall be allocated between Landlord and Tenant based on
such payment being amortized on a straight line basis over the 40 year lease
term hereof with Landlord receiving the portion amortized and Tenant receiving
the balance. For example, after the first Lease Year, Tenant would receive
39/40ths of the award and at the end of the Term and all renewals thereof,
Landlord would receive the entire award.

 

(d)     Nothing herein shall affect Tenant’s rights (i) to
any award or portion thereof, whether made to Landlord or Tenant, for any
leasehold improvements, or furniture, fixtures and equipment, paid for by
Tenant, and (ii) to any award made separately to Tenant for moving
expenses, attorneys’ and appraisers’ fees and other costs, expenses and
allowances, herein collectively referred to as “Tenant’s Award”.

 

30.           Default/Remedies/Bankruptcy.

 

(a)           The following enumerated events shall constitute an
event of default (an “Event of Default”) by
Tenant: (i) if this Lease is assigned unless in compliance with Section 22
or the Premises are sublet except as herein provided; or (ii) if Tenant
shall fail (A) to pay, when due, after expiration of any applicable grace
period, any rent or other charge payable hereunder and such failure continues
for five (5) business days after written notice shall have been received
by Tenant provided however that no written notice shall be required for more
than two (2) such failures in any twelve (12) month period; or (B) to
correct any default or to perform any of the other terms, covenants and
conditions hereof for more than thirty (30) days after written notice shall
have been given to Tenant specifying the nature of such default provided that
if any such default cannot be cured or corrected within such thirty (30) days,
then such additional time as may be reasonably necessary if Tenant has
commenced within such thirty (30) days and is diligently pursuing the remedies
or steps necessary to cure or correct such default; or (iii) the filing
by, on behalf of, or against Tenant of any petition or pleading by an
appropriate government entity to declare Tenant insolvent or unable to pay its
debts or meet its obligations under the laws of the United States or any state,
or if a receiver of the property of Tenant is appointed or upon the levy of
execution or other taking of property, assets or the leasehold interest of
Tenant by process of law or otherwise in satisfaction of any judgment, debt, or
claim against Tenant and such is not removed, stayed, bonded off, or dismissed
within, sixty (60) days.

 

20

 

(b)           Upon the occurrence of an Event of Default, Landlord
shall have the following rights and remedies and, at Landlord’s option, may
take the following action:

 

(i)            Landlord shall have the immediate right to re-enter
the Premises, upon obtaining a court order authorizing it to do so, and to dispossess
Tenant and all other occupants therefrom and remove and dispose of all property
therein or, at Landlord’s election, to store such property in a public
warehouse or elsewhere at the cost and for the account of Tenant, all without
service of any notice of intention to re-enter and with or without reason to
legal process (which Tenant hereby expressly waives) and without Landlord being
deemed guilty of trespass or becoming liable for any loss or damage which may
be occasioned thereby.

 

Landlord shall not
remove Tenant from the Premises until Tenant has been afforded opportunity to
notify all customers of the branch closing, as required by applicable law and
FDIC (or such other entities with jurisdiction over Tenant) regulation. Tenant
shall have the right to remove all financial and customer records in whatever
form, including all computers, from the Premises.

 

(ii)           Landlord shall have the right to
terminate this Lease by giving Tenant a written five (5) business days’
notice of such cancellation provided that Tenant’s default is not cured within
five (5) business days of receipt of notice.

 

(iii)          If by reason of the occurrence of any such Event of
Default, the term of this Lease shall end before the date therefor originally
fixed herein, or Landlord shall re-enter the Premises, or Tenant shall be
ejected, dispossessed or removed therefrom in any manner. Landlord may relet
the Premises either in the name of Landlord or as agent for Tenant, for a term
which, at Landlord’s option, may be less than or exceed the period of the
remainder of the term hereof. Landlord shall receive the rents from such
reletting and shall apply the same, first, to the payment of any indebtedness
other than rent due hereunder from Tenant to Landlord; second, to the payment
of such expenses as Landlord may have incurred in connection with re-entering,
reletting, altering, repairing, redecorating or otherwise preparing the
Premises for reletting, including brokerage and reasonable attorneys’ fees; and
the residue, if any, to the fulfillment of the terms, covenants and conditions
of Tenant hereunder and Tenant hereby waives all claims to the surplus, if any.
Tenant agrees to be liable for and to pay Landlord any deficiency between the
Fixed Rent, Additional Rent and other charges reserved herein and the net
avails of reletting. Landlord shall mitigate damages by using reasonable
efforts to relet the Premises on reasonable terms, provided, however, that
Landlord shall in no event be liable in any way whatsoever for its inability to
relet the Premises or, in the event of such reletting, for failure to collect
the rents reserved thereunder. Landlord is hereby authorized and empowered to
make such repairs, alterations, decorations, subdivisions or other preparations
for the reletting of the Premises as Landlord shall deem fit, advisable and
necessary, without in any way releasing Tenant from any liability hereunder, as
aforesaid.

 

(iv)          Subject to any approved leasehold financing, Landlord
shall have a valid and subsisting lien for the payment of all rents, charges
and other sums to be paid by Tenant and reserved hereunder (including all costs
and expenses incurred by Landlord in recovering possession of the Premises and
the reletting thereof as provided under this Section) upon Tenant’s goods,
wares, equipment, signs, fixtures, furniture and other personal property
situated in the Premises (except financial and customer information in whatever
form, including computers), and such property shall not be removed therefrom
without the consent of Landlord

 

21

 

until the
arrearages in rent as well as any and all other sums of money then due to
Landlord hereunder shall have first been paid and discharged. Upon the
occurrence of an Event of Default by Tenant, Landlord may, in addition to any
other remedies provided herein or by law, enter upon the Premises and take
possession of any and all goods, wares, equipment, signs, fixtures, furniture
and other personal property of Tenant situated in the Premises without
liability for trespass or conversion, and sell the same with or without notice
at public or private sale, with or without having such property at the sale, at
which Landlord or its assigns may purchase, and apply proceeds thereof less any
and all expenses connected with the taking of possession and the sale of the
property, as a credit against any sums due by Tenant to Landlord. Any surplus
shall be paid to Tenant unless such default is continuing and sums due to
Landlord are likely to continue to be incurred. The lien herein granted to
Landlord shall be in addition to any Landlord’s lien that may now or at any
time hereafter be provided by law but shall be subject and subordinate to the
lien of any mortgage of Tenant.

 

(v)           Landlord may declare the entire balance of the rent
for the remainder of the Lease Term to be due and payable, for which Tenant
will immediately pay Landlord the difference between the rent and other charges
reserved hereunder for a period which would have constituted the remainder of
the Lease Term and the then present rental value of the Premises for such
period, both discounted at the rate of eight percent (8%) per annum to present
worth. In determining the then present rental value of the Premises, the rent
realized by any reletting, if such reletting is accomplished by Landlord within
a reasonable time, shall be deemed prima facie to be the rental value, Landlord
may collect such amount in any manner not inconsistent with applicable law.

 

(vi)          No such re-entry or taking possession of the Premises
by Landlord shall be construed as an election on its part to terminate this
Lease unless written notice of such intention is given to Tenant.

 

(vii)         The rights and remedies herein reserved by or granted
to Landlord are distinct, separate and cumulative, and the exercise of any one
of them shall not be deemed to preclude, waive or prejudice Landlord’s right to
exercise any or all others.

 

(viii)        In the event either party is in default in the
performance of any term, covenant, agreement or condition contained in this
Lease, or if Landlord brings suit for the possession of the Premises, the
defaulting party shall reimburse the non-defaulting party for all costs and
expenses, including without limitation, court costs and reasonable attorneys’ fees
incurred by it in protecting its interests.

 

(ix)           Tenant agrees that the venue and/or jurisdiction for
any legal actions brought by Landlord pursuant to this Section shall be in
the county or city in which the Center is located.

 

(c)           If Landlord shall not be permitted to terminate this
Lease as hereinabove provided because of the provisions of Title 11 of the
United States Code relating to Bankruptcy, as amended (“Bankruptcy Code”),  then Tenant, as a
debtor-in-possession, or any trustee for Tenant agrees promptly, within no more
than thirty (30) days upon request by Landlord to the Bankruptcy Court, to
assume or reject this Lease and Tenant on behalf of itself, and any trustee
agrees not to seek or request more than one (1) extension or adjournment
of any application to assume or reject this Lease by Landlord with such Court. In
such event, Tenant or any trustee

 

22

 

for Tenant may
only assume this Lease if (i) it cures or provides adequate assurance that
the trustees will promptly cure any default hereunder; (ii) compensates or
provides adequate assurance that Tenant will promptly compensate Landlord for
any actual pecuniary loss to Landlord resulting from Tenant’s defaults; and (iii) provides
adequate assurance of performance during the Lease Term of all of the terms,
covenants, and provisions of this Lease to be performed by Tenant. In no event
after the assumption of this Lease shall any then existing default remain
uncured for a period in excess of sixty (60) days. Adequate assurance of
performance of this Lease, as set forth above, shall include, without
limitation, adequate assurance (i) of the source of rent reserved
hereunder; and (ii) the assumption of this Lease will not breach any
provision hereunder. In the event of a filing of a petition under the
Bankruptcy Code, Landlord shall have no obligation to provide Tenant with any
services or utilities as herein required unless Tenant shall have paid and be
current in all payments of Fixed Rent and Additional Rent, including, without
limitation, all Common Area Charges, utilities costs or other charges therefor.
It is understood and agreed that this is a lease of real property in a Center
as such lease is described in Section 365(b)(3) of the Bankruptcy Code.

 

(d)           A failure by Landlord to perform or observe any of the
obligations on Landlord’s part to be performed or observed pursuant to this
Lease, if such failure continues for thirty (30) days after receipt of written
notice thereof is sent by Tenant to Landlord informing Landlord of such
failure, shall constitute a default under this Lease; provided, however, that
if the failure set forth in Tenant’s notice is such that it requires more than
thirty (30) days to correct, Landlord shall not be deemed to be in default
hereunder if Landlord commences curing the failure within thirty (30) days
after written notice is sent by Tenant to Landlord informing Landlord of such
failure and thereafter diligently prosecutes the cure.

 

31.           Landlord’s Access to Premises. Landlord and its agents shall have the
right to place, replace, maintain and repair all utility equipment of any kind
in, upon, above or under the Premises as may be necessary for the servicing of
the Premises and/or other portions of the Center provided such is not within
building confines on the Premises or will not adversely affect Tenant’s
business operations on the Premises.

 

32.           Subordination/Attornment/Estoppel
Certificates.

 

(a)           Tenant agrees to give any mortgagee or any holder of a
note of which Tenant has actual knowledge secured by a deed of trust (“Mortgagee”) of the Center, by registered or certified mail,
or receipted overnight mail, given at the same time Tenant gives notice to
Landlord, a copy of any notice of default served upon Landlord by Tenant,
provided that prior to such notice Tenant has been notified in writing of the
address of such Mortgagee. Tenant further agrees that if Landlord shall have
failed to cure such default within thirty (30) days after such notice to
Landlord (or if such default cannot be cured or corrected within that time,
then such additional time as may be reasonably necessary if Landlord has
commenced within such thirty (30) days and is diligently pursuing the remedies
or steps necessary to cure or correct such default), then the Mortgagee shall
have an additional thirty (30) days within which to cure or correct such
default (or if such default cannot be cured or corrected within that time, then
such additional time as may be necessary if such Mortgagee has commenced within
such thirty (30) days and is diligently pursuing the remedies or steps
necessary to cure or correct such default, including, without limitation,
commencement of foreclosure proceedings if necessary to effect such a cure),
provided such additional time to cure shall not exceed 30 days beyond the
original 30 day period. Until the time allowed as aforesaid for the Mortgagee
to cure such default has

 

23

 

expired without
cure, Tenant waives any right at law or in equity to terminate this Lease on
account of Landlord’s default.

 

(b)           Landlord and Tenant agree that this Lease
shall be subject and subordinate at all times to all ground and underlying
leases, the lien of any first mortgages or deeds of trust in any amounts and to
any lien resulting from any other method of financing or refinancing, and all
advances thereon, which may now or hereafter be placed by Landlord against or
affect any or all of the land and/or the Premises and/or any or all of the
buildings and improvements now or at any time hereafter constituting a part of
the Center, and to all renewals, modifications, consolidations, participations,
replacements and extensions thereof, provided that such subordination shall be
contingent on Tenant receiving a Subordination and Non-Disturbance Agreement in
the form attached hereto as Exhibit C,
which Agreement Tenant agrees to execute within ten (10) business days
after request therefor by Landlord. Notwithstanding anything herein to the
contrary, in the event any Mortgagee or ground or underlying lessor requests
that this Lease be made superior, rather than subordinate, to the lien of any
such mortgage or deed of trust or to any such ground or underlying lease,
Tenant agrees to execute and deliver, within ten (10) business days
following Landlord’s written request therefor and without charge, any and all
documents reasonably necessary to effectuate such priority.

 

(c)           Tenant agrees that in the event of a
sale, transfer or assignment of Landlord’s interest in the Center or any part
thereof, including the Premises, or in the event any proceedings are brought
for the foreclosure or exercise of any power of sale under any mortgage, deed
of trust or other method of financing or refinancing made by Landlord covering
the Center or any part thereof, including the Premises, or in the event of a
cancellation or termination of any ground or underlying lease covering the
Center or any part thereof, including the Premises, to attorn to and to
recognize such transferee, purchaser, ground or underlying lessor or mortgagee
as the lessor under this Lease, provided that such new landlord assumes all
responsibilities and liabilities of Landlord hereunder. On a voluntary sale or
transfer of the Center, Landlord shall provide Tenant with written notice of
such sale or transfer prior to Tenant’s attornment to the new landlord.

 

(d)           Within ten (10) business days after
request therefor by Landlord or Tenant, the party of whom requested agrees to
execute and deliver a certificate, in a form reasonably acceptable to the
other, addressed to any proposed Mortgagee, any purchaser of the Premises
and/or Landlord or Tenant, certifying to matters requested, including, without
limitation, the following: (i) that Tenant is in full and complete possession
of the Premises, such possession having been delivered by Landlord or its
predecessor and accepted by Tenant; (ii) that any improvements required to
be furnished by Landlord or Tenant as the case may be by the terms of this
Lease have been completed in all respects to the certifying party’s knowledge; (iii) that
this Lease is in full force and effect and has not been amended, modified,
supplemented or superseded except as specifically noted; (iv) that to the
certifying party’s knowledge, there is no existing default on the part of
either party in the performance of any covenant, agreement or condition
contained in this Lease to be performed by either party; (v) that Tenant
or Landlord, as the case may be, does not have any actual or pending claim against
Landlord or Tenant, as the case may be; (vi) that no rents or other
charges have been prepaid by Tenant; and (vii) that the addressee of said
certificate may rely on the representations therein made; and certifying as to
the dates of commencement and termination of the Lease Term, the date on which
rents commenced to accrue under this Lease, and the date through which rents
and other charges hereunder have been paid.

 

24

 

33.           Quiet Enjoyment. Tenant, upon paying the rents herein reserved and
performing and observing all of the other terms, covenants and conditions of
this Lease on the Tenant’s part to be performed and observed hereunder, shall
peaceably and quietly have, hold and enjoy the Premises during the Lease Term,
subject, to the terms of this Lease and to any mortgages, ground or underlying
leases, agreements and encumbrances to which this Lease is or may be
subordinated, without hindrance or molestation by Landlord or anyone claiming
by, through or on behalf of Landlord. Landlord shall not be responsible to
Tenant and Tenant shall have no claim against Landlord should Tenant’s use and
occupancy of the Premises for the purposes and during the times set forth
herein be prohibited, impaired, limited or restricted in any way by reason of
any law, ordinance or regulation or any governmental authority or by reason of
any act of any legal or governmental or other public authority. Except in cases
of bona fide emergencies, if Landlord has a right to enter Tenant’s building,
it will do so only during regular business hours and only after at least one
business day notice in writing to Tenant.

 

34.           Force Majeure. Either party shall be excused for any period or
periods of delay in the performance of any of such party’s obligations
hereunder (other than the payment of rent hereunder) when delayed, hindered or
prevented from so doing by any cause or causes beyond such party’s control,
which causes shall include, without limitation, all labor disputes, riots, civil
commotion or insurrection, war or war-like operations, invasion, rebellion,
military or usurped power, sabotage, acts or threats of terrorism, governmental
restrictions, regulations or controls (including delays attributable to the
actions and requirement of federal, state and local environmental protection
agencies respecting water pollution and/or air pollution, storm drainage,
sanitary sewer disposal, energy shortages and/or like matters), inability to
obtain any materials or services, fire or other casualties, or acts of God. The
foregoing are individually and collectively referred to as a “Force Majeure”. Lack of available funds shall not be deemed
a Force Majeure.

 

35.           Tenant’s Office. If Tenant is unable to use its building as a
financial center for any reason, including, for example, destruction of all or
part of it, Tenant may operate its financial services business out of a trailer
located on the Premises for a period not to exceed 12 months (subject to
Paragraph 34 above) until Tenant is able to resume the use of the building for
its financial services business.

 

36.           Surrender of Premises. Upon the expiration or sooner termination of the
Lease Term, Tenant agrees, (without the necessity of notice if upon expiration,
but with notice if upon the sooner termination), to quit and surrender the
Premises, broomclean, in good condition and repair, reasonable wear and tear
excepted, together with all keys and combinations to locks, safes and vaults
and all improvements, alterations, additions, fixtures and equipment at any
time made or installed in, upon or to the interior or exterior of the Premises,
except personal property and all trade fixtures, all of which shall thereupon
become the property of Landlord without any claim by Tenant therefor, but the
surrender of such property to Landlord shall not be deemed to be a payment of
rent or in lieu of any rent reserved hereunder. Before surrendering the
Premises, Tenant shall remove all of Tenant’s said personal property and trade
fixtures and any vault installed by Tenant. If the Premises be not surrendered
as and when aforesaid, Tenant shall indemnify Landlord against all loss or
liability resulting from the delay by Tenant in so surrendering the same,
including, without limitation, any claims made by any succeeding occupant
founded on such delay. Tenant’s obligations under this Section shall
survive the expiration or sooner termination of the Lease Term.

 

25

 

37.           Holding Over. In the event Tenant remains in possession of the
Premises after the expiration of the Lease Term (or any renewal thereof)
without the execution of a new lease or other written agreement, such holding
over shall, in the absence of a written agreement to the contrary, be deemed to
have created and be construed to be a tenancy from month-to-month terminable on
thirty (30) days’ written notice by either party to the other, at a monthly
rental equal to 150% of the sum of (i) the monthly installment of Fixed
Rent payable during the last month of the lease Term; (ii) one-twelfth
(1/12th) of the Tax Charge payable for the last Lease Year of the Lease Term;
and (iii) the Common Area Charge payable for such month, subject to all
the other conditions, provisions and obligations of this Lease insofar as the
same are applicable to a month-to-month tenancy. In addition, Tenant further
agrees that if it fails to so surrender the Premises Tenant (i) will be
liable to Landlord for any and all damages which Landlord shall suffer by
reason thereof including consequential damages, and (ii) will indemnify
Landlord against all claims and demands made by any succeeding tenants against
Landlord, founded upon delay by Landlord in delivering possession of the
Premises to such succeeding tenant.

 

38.           Relationship of Parties. Nothing contained in this Lease shall be deemed to
constitute or be construed to create the relationship of principal and agent,
partnership, joint ventures or any other relationship between the parties
hereto, other than the relationship of landlord and tenant.

 

39.           No Waiver. The failure of Landlord to insist upon the strict
performance of any provisions of this Lease, or the failure of Landlord to
exercise any right, option or remedy hereby reserved shall not be construed as
a waiver for the future of any such provision, right, option or remedy or as a
waiver of a subsequent breach thereof. No provision of this Lease shall be
deemed to have been waived unless such waiver shall be in writing signed by
Landlord. No payment by Tenant or receipt by Landlord of a lesser amount than
the rents and/or other charges hereby reserved shall be deemed to be other than
on account of the earliest rents and/or charges then unpaid, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment by Tenant be deemed an accord and satisfaction and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the
balance of such rents and/or other charges due or Landlord may pursue any other
remedy in this Lease provided, and no waiver by Landlord in favor of any other
lessee or occupant of the Center shall constitute a waiver in favor of Tenant.

 

40.           Notices. Every notice, demand, request or other communication
which may be or is required to be given under this Lease or by law shall be
sent by Federal Express or other overnight or express mail delivery service and
shall be addressed: (i) if to Landlord, to Landlord’s Mailing Address; and
(ii) if to the Tenant, to Tenant’s Mailing Address, each with copies
delivered in the same form as applicable, as stated above. Either party may
designate, by written notice to the other party, any other address for such
purposes. Notice shall be deemed provided on the date received or upon the date
delivery is refused.

 

41.           Partial Invalidity. If any provision of this Lease or the application
thereof to any person or circumstance shall to any extent be held invalid, then
the remainder of this Lease or the application of such provision to persons or
circumstances other than those as to which it is held invalid shall not be
affected thereby, and each provision of this Lease shall be valid and enforced
to the fullest extent permitted by law.

 

26

 

42.           Broker. Tenant covenants, warrants and represents to
Landlord that other than MacKenzie Commercial Real Estate Services, LLC (the “Broker”), there was no broker involved in consummating this
Lease and that no conversations or prior negotiations were had by Landlord or
Tenant, as the case may be, with any other broker concerning the renting of the
Premises. Landlord covenants and agrees to pay any and all fees, expenses and
commissions due to Broker in accordance with separate agreements between
Landlord and Broker. Landlord and Tenant agree to indemnify and hold the other
harmless against and from all liabilities, including attorneys’ fees, arising
from any claims for brokerage commissions or finders fees resulting from any
conversations or negotiations had by Landlord or Tenant, as applicable, with
any other broker or any other person.

 

43.           Management Agents. Tenant acknowledges that Landlord may manage the
Center through agents and agrees that Landlord’s agents shall be entitled to the
same rights of access to the Premises as Landlord and shall benefit from all
covenants of Tenant with regard to indemnification, insurance and limitations
of liability under the terms and conditions of this Lease to the same extent as
Landlord.

 

44.           Provisions Binding. Except as otherwise expressly provided in this
Lease, all covenants, conditions and provisions of this Lease shall be binding
upon and shall inure to the benefit of the parties hereto and to Landlord’s
heirs, legal representatives, successors and assigns and shall be binding upon
Tenant’s heirs and legal representatives, and inure to those successors and
assigns of Tenant as may be permitted hereunder. Each provision of this Lease
to be performed by Tenant and Landlord shall be construed to be both a covenant
and a condition, and if there shall be more than one Tenant, they shall all be
bound jointly and severally by the provisions of this Lease.

 

45.           Entire Agreement. This Lease, including the Exhibits, Riders and/or
Addenda, if any, attached hereto, sets forth the entire agreement between the
parties and shall not be modified except by an instrument in writing executed
by Landlord and Tenant. The submission of this document for examination does
not constitute an offer to lease or a reservation of an option for the
Premises, and becomes effective only upon execution and delivery thereof by
Landlord and Tenant.

 

46.           Survival of Obligations. The provisions of this Lease with respect to any
obligation of Tenant to pay any sum owing in order to perform any act after the
expiration or other termination of this Lease shall survive the expiration or
other termination of this Lease.

 

47.           Jury Trial. TENANT AND LANDLORD BOTH WAIVE A TRIAL BY JURY OF
ANY OR ALL ISSUES ARISING IN ANY ACTION OR PROCEEDING BETWEEN THE PARTIES
HERETO OR THEIR SUCCESSORS. UNDER OR CONNECTED WITH THIS LEASE, OR ANY OF ITS
PROVISIONS.

 

48.           Representations. Tenant acknowledges that neither Landlord nor
Landlord’s agents, employees or contractors have made any representations or promises
with respect to the Premises, the Center or this Lease except as expressly set
forth herein.

 

27

 

49.           Landlord Default/Remedies.

 

(a) The failure of Landlord to comply with any
term or provision of this Lease shall be an event of default hereunder,
provided, however, that Tenant shall not have the right to pursue any remedies
hereunder until the expiration, without cure, of 30 days after written notice
to Landlord specifying the event of default.

 

Upon an event of default, after the expiration without
cure of the 30 day notice and cure period, Tenant may pursue all available
legal and equitable remedies available to it, including, for example, seeking
monetary damages, and/or curing the default at Landlord’s expense. Tenant may
terminate the Lease or withhold all or part of the rent after obtaining a court
order to that effect.

 

50.           Governing Law. This Lease shall be governed by the laws of the
State of Maryland.

 

51.           Notice. Any notice, demand, request, or other communication
which Landlord or Tenant shall be required to give hereunder shall be in
writing, shall be effective and deemed to be received the following business
day when sent by overnight mail or the third business day after deposit in first
class, certified United States mail, postage prepaid, return receipt requested,
and shall be addressed to the addressee (with copies as therein set forth) in
Paragraph 1 of this Lease or such other addresses as the parties shall provide
each other in writing.

 

52.           Time is of the Essence. Time is of the essence for
all obligations under this Lease.

 

53.           Waiver of Liability. Anything contained in this Lease to the contrary
notwithstanding, Tenant agrees that Tenant shall look solely to the estate and
property of the Landlord, its successors and assigns, in the land and buildings
comprising the Center for the collection of any judgment (or other judicial
process) requiring the payment of money by Landlord in the event of any default
or breach by Landlord with respect to any of the terms and provisions of this
Lease to be observed and/or performed by Landlord, subject, however, to the
prior rights of any ground or underlying lessors or any Mortgagee, and no other
assets of Landlord shall be subject to levy, execution or other judicial
process for the satisfaction of Tenant’s claim. In the event Landlord, after
completion of Landlord’s Work, conveys or transfers its interest in the Center
or in this Lease or makes a lease of the entire Center, except as collateral security
for a loan, upon such conveyance, transfer or lease, Landlord (and in the case
of any subsequent conveyances, transfers or leases the then grantor, lessor or
transferor) shall be entirely released and relieved from all liability with
respect to the performance of any covenants and obligations on the part of
Landlord to be performed hereunder from and after the date of such conveyance,
transfer or lease; it being intended hereby that the covenants and obligations
on the part of Landlord to be performed hereunder, subject as aforesaid, shall
be binding on Landlord, its successors and assigns only during and in respect
of their respective periods of ownership of an interest in the Center or in
this Lease.

 

54.           Party Entities. If either party is a corporation, limited liability
company or other statutory entity, the persons executing this Lease on behalf
of such party hereby covenant, represent and warrant that such party is a duly
incorporated, or organized entity (or a duly qualified foreign entity) and is
authorized to do business in the state in which the Center is located; and that
the person or persons executing this Lease on behalf of such party is an
officer, member or other duly authorized person, authorized to sign and execute
this Lease on behalf of said party. Upon request of either party to the other
party, the other party shall deliver to such party

 

28

 

documentation
satisfactory to the requesting party evidencing the other party’s compliance with
the provisions of this Section.

 

55.           Independent Obligations. Tenant shall not for any reason withhold or reduce
Tenant’s required payments of Fixed Rent or Additional Rent provided in this
Lease, it being agreed that the obligations of Landlord hereunder are
independent of Tenant’s obligations except as may be otherwise expressly
provided.

 

56.           Cooperation. Landlord and Tenant shall fully cooperate with each
other throughout the Term of this Lease to secure and maintain proper zoning,
building and other permits and compliance with all applicable laws, and
Landlord and Tenant shall execute all such petitions, requests and the like as
shall be reasonably necessary for such purposes.

 

[SIGNATURES COMMENCE ON NEXT PAGE.]

 

29

 

IN
WITNESS WHEREOF, the
parties hereto have respectively signed and sealed this Lease.

 

 

	
   

  	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TARRAGON,
  INC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Scott Kamenetz,
  President

  
	
   

  	
   

  	
  GREGORY SCOTT KAMENETZ,
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CARROLLTON BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Robert A. Altieri

  
	
   

  	
   

  	
   

  	
  Name:

  	
  ROBERT A. ALTIERI

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President

  

 

30

 

EXHIBIT A

 

CENTER SITE PLAN

 

 

EXHIBIT A-1

 

PREMISES SITE PLAN

 

 

 

EXHIBIT A-2

 

LEGAL DESCRIPTION OF THE PREMISES

 

 

EXHIBIT B

 

CONSTRUCTION AND DESIGN REQUIREMENTS

 

General Conditions

 

a.    All Tenant Improvements are subject to
the Landlord’s approval. Tenant should discuss specific thoughts about their
design concept and raise any questions about the document with the Landlord’s
representative before beginning preliminary design work.

 

b.    Each Tenant is required to retain an
architect registered in the State of Maryland to prepare construction
documents. The Tenant shall notify the Landlord’s representative of the name,
address, and telephone number of the architect or designer who will be
preparing plans.

 

c.    It is imperative that all the
requirements outlined in the Landlord’s design and construction criteria be
strictly adhered to by the Tenant. Failure to do so will only result in
unnecessary and costly delays in the approval of drawings.

 

d.    The Landlord’s approval of design
submittals does not constitute an investigation and/or verification of
conditions existing for the proposed installations and/or construction. It is
the responsibility of the Tenant to verify, field inspect, and to plan the work
accordingly to ensure that nothing restricts or prohibits proposed materials or
installation.

 

e.    At any time the exterior of the Tenant’s
building is to be altered, the proposed design must be submitted to Landlord’s
representative for approval.

 

f.     Each tenant is required to retain a civil
engineer registered in the state of Maryland to prepare civil drawings and to
coordinate and obtain any necessary Public Works Agreement(s) (PWA) or
Modified Public Works Agreement(s) (MPWA) as required by the state of
Maryland or the local governing authorities. The Tenant’s civil drawings shall be
coordinated with the existing conditions. All work to be done per the tenant
civil drawings shall be at Tenant’s expense.

 

g.    Any damage beyond the Leased Premises to
the existing site, as a result of Tenant’s work, shall be returned to
“pre-exiting” condition at Tenant’s expense. If Tenant does not make the
necessary repairs within a reasonable amount of time or if the repairs are not
accepted by Landlord, Landlord shall make such repairs at Tenant’s expense.

 

h.    Tenant shall coordinate all utility connections
with respective utility companies.

 

i.     Tenant shall pay any and all costs in
connection with Tenant’s construction, including any and all sewer and water
capacity fees relating solely to the connection of the Leased Premises to the
public water and sewer lines.

 

 

1.          TENANT’S PLANS

 

For
each submittal phase the Tenant shall provide one (1) set of blueprints
and one (1) set of reproducible sepia prints. All drawings and
specifications must be clearly identified with project name, Tenant store name,
and Tenant store address and revision date.

 

Prior
to starting construction, the Tenant shall provide completed working drawings
and specifications, in a site plan, preliminary and then final submission for
the construction of the leased premises in order to receive Landlord’s written
approval.

 

2

 

EXHIBIT B-l

 

DESCRIPTION OF LANDLORD’S AND
TENANT’S WORK

 

Landlord’s Work: With respect to the Premises, Landlord will deliver
the Premises to Tenant in a graded and compacted condition to accommodate
Tenant’s improvements. The Premises shall be certified by a licensed engineer
to be within 5% of ASTM Standards with reference to soil conditions and
compaction. All appropriately sized public utilities, inclusive of public
sanitary sewer, water, and electric, shall be stubbed to within 5’ of Tenant’s
building as located within the Leased Premises. All offsite work shall be at
the sole expense of Landlord.

 

Tenant’s Work:

 

A.         Prior to submittal to governmental
authorities, Tenant shall obtain approval of all site and building designs from
Landlord. In no event shall any improvement on the Premises exceed governmental
height restrictions. Tenant shall obtain all permits necessary for the construction
and operation of its bank on the Premises, including, without limitation, any site
plan approvals, grading permits and building permits. Tenant shall perform all
work other than Landlord’s Work necessary to complete the construction of the
contemplated Improvements on the Premises including without limitation the
construction of Tenant’s building; foundations; including curb and gutter,
dumpster pad, and screening; sidewalks (including brick pavers on concrete
sub-slabs); irrigation and landscaping; signage; lighting and all other on-site
improvements within the Premises and bringing to Tenant’s building all utility
lines from the points to where Landlord has brought same, payment of all
connection fees, fixture charges, utility availability fees, meter fees, water
and sewer capacity fees, taxes and permit fees payable with respect thereto.
Building materials, design and signage shall meet the required prior approvals
of the County and the Landlord. Tenant shall install siltation controls as
required by applicable governmental authorities prior to commencement of and
during construction. Tenant shall install a water submeter within the Building
that shall have an easily accessible remote readout. Tenant shall conduct its
construction activities so as to keep roads and thoroughfares clean and free of
debris otherwise Landlord, after notice to Tenant, may clean such roads and
thoroughfares for Tenant’s account.

 

B.         Tenant shall not permit its contractor(s) to
commence any work until all required insurance has been obtained and certificates
of insurance have been delivered to the Landlord. Tenant shall secure, pay for
and maintain, or cause its contractors to secure, pay for and maintain, during
the continuance of construction and fixturing work within the Premises, the
following insurance and in the minimum amounts as set forth below: (i) Worker’s
Compensation in statutory limits, including employers liability for Five Hundred
Thousand Dollar ($500,000.00) limit and Broad Form All States Endorsement;
(ii) Comprehensive General Liability of One Million Dollars
($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000) in the
aggregate, to include a “Broad Form Comprehensive General Liability”
endorsement, including such items as Personal Injury Liability (with employer
exclusion deleted), Independent Contractors, Blanket Contractual Liability,
Broad Form Property Damage Liability, employers as additional insured and
Products/Completed Operations. Products/Completed Operations Insurance Coverage
shall be maintained for a period of at least two (2) years following
completion

 

 

of
the Work; (iii) Comprehensive Business Automobile Liability insurance,
indicating coverage for “any auto” for a One Million Dollar ($1,000,000.00) per
occurrence, with the contractual liability exclusion deleted; and (iv) Umbrella
Liability Policy on a Following Form Basis or broader for at least a limit
of liability of One Million Dollars ($1,000,000.00) per occurrence and Two
Million Dollars ($2,000,000) in the aggregate, or greater. Certificates of insurance
acceptable to Landlord shall be filed with Landlord prior to commencement of
the Tenant’s Work. Tenant’s contractor(s) shall not cause any policy of
insurance to be canceled nor permit any insurance coverage to lapse. All
insurance policies shall be endorsed to include a clause to the effect that the
policy shall not be canceled or reduced, restricted or limited until thirty
(30) days after the Landlord and any mortgagees have received written notice.
All liability insurance policies obtained in the name of the contractor shall
name Landlord and any mortgagees as additional named insureds and shall contain
a cross-liability clause.

 

C.         Tenant’s contractor(s) shall obtain
and maintain in effect until final completion, Completed Value Builder’s Risk
Insurance (for broad “All Risk” perils) in form and content acceptable to
Landlord covering all Tenant’s Work in an amount equal to one hundred percent
(100%) of the full replacement cost thereof, including all materials, temporary
offices, protective fences, bridges or temporary structures, miscellaneous
materials and supplies incident to Tenant’s Work, while on or within one
hundred (100) feet of the site. The policy shall cover materials, supplies,
etc. for which the named insured is liable without any special sub-limit. Such
insurance shall contain endorsements covering contingent liability from
operation of building laws, increased cost of construction and differences in
conditions. Such policy shall be for the mutual benefit of, and name as
additional named insureds thereunder, Landlord and any mortgagees. Such policy
shall be written as primary and non-contributing with respect to any
overlapping policies carried by Landlord and shall include a waiver by the
insurer of any right of subrogation against Landlord and its respective
partners, officers, employees, successors and assigns and against Landlord’s
contractors.

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]