Document:

<PAGE>
                           [KNOWLES ELECTRONICS LOGO]

                                                                   Exhibit 10.23

June 13, 2002

Mr. James H. Moyle
981 Olde Sterling Way
Dayton, Ohio 45459

Re: Offer Of Employment

Dear Jim:

I am very pleased to offer you the position of Vice President and Chief
Financial Officer, reporting to Mr. John Zei. In this position you would be
paid a biweekly salary of $10,192.31, which is $265,000 on an annualized basis.
Future salary increases will be based upon your performance and Company
compensation guidelines. In addition, you will be eligible for participation in
an Annual Incentive Program (AIP), with a target payout of 50% of your annual
base salary and a maximum payout of 100%. Payout is based on successful
attainment of certain financial and performance objectives, to be discussed by
John and you subsequent to your start date.

You will be eligible to receive Common Stock of the Company in the amount of
$350,000. $200,000 will be available as part of the CY2002 year-end incentive
calculation, awarded on your first-year anniversary date. The remaining
$150,000 will be available as part of the CY2003 year-end incentive
calculation. The above stock incentive is separate from the Annual Incentive
Program (AIP). Please refer to the Executive Stock Purchase Agreement Section
8, paragraph c, which outlines the severance protection.

As a full time employee, you will be eligible for a comprehensive program of
Executive Benefits as outlined in the attached SUMMARY OF BENEFITS. In addition
to this benefit package, we are prepared to assist you with the actual and
reasonable expenses associated with your relocation to Illinois to include the
following:

     1. We will pay for actual and reasonable expenses associated with the
        packing and moving of your personal property/household items.

     2. If needed, we will pay for temporary storage of the items listed under
        item #1 for up to 120 days.

     3. In the event that you are unable to move directly into regular housing
        when you arrive in Illinois, we will pay for Temporary Housing for a
        period of up to 300 days, reduced by the time period covered under item
        9.
<PAGE>
     4. If needed, we will pay for your use of a rental vehicle for a period of
        120 days.

     5. If necessary, we will pay for three house-hunting trips (including
        spouse & family) of up to five days during the transition period.

     6. We will pay for up to six return trips home and their related expenses
        prior to your permanent relocation to Illinois.

     7. We will reimburse you for the actual Real Estate Commission and
        statutory Closing Costs associated with the sale of your current home.
        Furthermore, in the event that your home is sold for below its original
        listed value, we will reimburse you the difference between the original
        listed value and the final sales price, up to 10% of the original value
        of $1,150,000.

     8. We will pay for miscellaneous expenses in connection with the purchase
        of a new home in the Chicago area (i.e. loan application fees, appraisal
        fees) up to a maximum of $10,000.

     9. If you acquire a new home in Illinois, and your existing home is not
        sold, we will pay the lower of the two monthly mortgage amounts, up to a
        maximum of six monthly payments.

    10. The above taxable moving expenses will be grossed up to offset any
        adverse tax implications.

As with all new employees, you will be required to complete an I-9 Form which
deals with your eligibility to work in the United States.

Jim, we are looking forward to you joining us on July 8, 2002, and everyone is
confident you will make an immediate contribution. If the foregoing is
acceptable to you, please sign below and mail a copy to my attention.

Sincerely,

Ray Cabrera
-------------------------------
Ray Cabrera
Vice President, Human Resources

James H. Moyle
-------------------------------
James H. Moyle

Date: June 17, 2002
<PAGE>

                      JAMES H. MOYLE - EMPLOYMENT AGREEMENT

                                  ATTACHMENT I

             EXECUTIVE STOCK PURCHASE AGREEMENT - SELECTED SECTIONS
             ------------------------------------------------------

         1.       DEFINITIONS.   As used herein, the following terms shall have
                                 the following meanings.

                  "BOARD" means the Company's board of directors.

                  "CAUSE" means (i) a willful and material breach of Section 7
or Section 8 of this Agreement by the Executive which results in harm to the
Company or benefit to the Executive or others; (ii) the commission by the
Executive of a non-traffic felony, a crime involving theft or dishonesty which
in the reasonable determination of the Board is likely to cause material harm
to, or to the standing and reputation of, the Company or its Subsidiaries; (iii)
gross negligence in the performance of the Executive's duties to the Company and
its Subsidiaries; (iv) the Executive's willful failure to comply with or
disregard of the reasonable directives of the Board (PROVIDED, that performance
in accordance with such directives does not constitute a change in the terms of
the Executive's employment) or violation of any statutory or common law duty of
loyalty to the Company; or (v) any material knowing misrepresentation or
material knowing non-disclosure by the Executive to the Board.

                  "GOOD REASON" means, without the Executive's prior written
consent, the occurrence of any of the following events which is not cured by the
Company within 15 days after receipt of notice from the Executive: (i) the
Executive's base salary is reduced; (ii) Executive's benefits under any benefit
plan or bonus plan are materially reduced (unless such reduction is part of a
plan or program implementing a general reduction in such benefits for all of the
Company's senior executives or unless reasonably comparable benefits are
substituted); (iii) the Executive's principal place of employment is relocated
by more than 25 miles or the assignment of duties to the Executive will
reasonably require such relocation; or (iv) there is a material reduction or
other material adverse change in the nature or scope of the Executive's duties,
responsibilities or authority.

                  "PERSON" means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization or any other entity, including a
governmental entity or any department, agency or political subdivision thereof.

<PAGE>

                  "SUBSIDIARY" means, with respect to any Person, any Person of
which (i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a partnership,
association or other business entity, a majority of the partnership, membership
or other similar ownership interests thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that
Person or a combination thereof. For purposes hereof, a Person or Persons shall
be deemed to have a majority ownership interest in another Person if such Person
or Persons shall be allocated a majority of the gains or losses of or shall be
or control the managing member or a general partner of such other Person.

         8.       NON-COMPETE, NON-SOLICITATION.
                  -----------------------------

                  (a) The Executive acknowledges that in the course of his
employment with the Company and its Subsidiaries he has become familiar, and he
will become familiar, with the Company's and its Subsidiaries' trade secrets and
with other Confidential Information and that his services have been and will be
of special, unique and extraordinary value to the Company and its Subsidiaries.
Therefore, the Executive agrees that he shall not, during the time he is
employed by the Company and its Subsidiaries and for 12 months thereafter,
directly or indirectly own, operate, manage, control, participate in, consult
with, advise, engage in services for any competitor of the Company or in any
manner engage in any start up of a business (including by himself or in
association with any person, firm, corporate or other business organization or
through any other entity) in competition with the businesses of the Company or
its Subsidiaries as in existence or in process on the date of termination of the
Executive's employment (the "BUSINESSES"), within any state or country in which
the Company or any of its Subsidiaries makes sales. Nothing herein shall
prohibit the Executive from being a passive owner of not more than 2% of the
outstanding stock or equity of a Person which is publicly traded, so long as the
Executive has no active participation in the business of such Person.

                  (b) During the time the Executive is employed by the Company
and its Subsidiaries and for 12 months thereafter, the Executive shall not
directly or indirectly through another entity (i) induce or attempt to induce
any employee of the Company or any Subsidiary to leave the employ of the Company
or such Subsidiary, or in any way interfere with the relationship between the
Company or any Subsidiary and any employee thereof, including without
limitation, inducing or attempting to induce any union, employee or group of
employees to interfere with the Business or operations of the Company or its
Subsidiaries, (ii) hire any person who was an employee of the Company or any
Subsidiary at any time within the six month period prior to the date the
Executive employs or seeks to employ such person, or (iii) induce or attempt to
induce any supplier, distributor, franchisee, licensee or other business
relation of the Company or any Subsidiary to cease doing business with the
Company or such Subsidiary, or in any way interfere with the relationship
between any such customer, supplier, distributor, franchisee, licensee or
business relation and the Company or any Subsidiary.
<PAGE>

                  (c) In the event that the Executive's employment is terminated
by the Company without Cause or voluntarily by the Executive with Good Reason,
for 12 months after such termination, the Company shall continue to pay to the
Executive his base salary as in effect at the time of such termination (without
regard to any reduction which provided Good Reason), and the Executive shall
continue to receive normal coverage under the Company's medical plans until the
end of such period or until replacement coverage is provided by any new
employer, whichever occurs sooner; PROVIDED, that in the event that the
Executive breaches any provision of this Section 8, the Company shall no longer
be obligated to make any such payments or provide such coverage.

                  (d) The Executive agrees that: (i) the covenants set forth in
this Section 8 are reasonable in geographical and temporal scope and in all
other respects, (ii) the Company would not have entered into this Agreement but
for the covenants of the Executive contained herein, and (iii) the covenants
contained herein have been made in order to induce the Company to enter into
this Agreement.

                  (e) If, at the time of enforcement of this Section 8, a court
shall hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law.

                  (f) The Executive recognizes and affirms that in the event of
his breach of any provision of this Section 8, money damages would be inadequate
and the Company and the Investor would have no adequate remedy at law.
Accordingly, the Executive agrees that in the event of a breach or a threatened
breach by the Executive of any of the provisions of this Section 8, the Company,
in addition and supplementary to other rights and remedies existing in its
favor, may apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive or other relief in order to enforce or
prevent any violations of the provisions hereof (without posting a bond or other
security).exv10w1

 

Exhibit 10.1

FAIR LAKES CENTER

LEASE AGREEMENT

     
THIS LEASE AGREEMENT is made this 15th day of
September, 1997, by and between THE SHOPS AT FAIR LAKES, L.P., a
Virginia limited partnership (“Landlord”) and ALLIANCE
BANK,
a                                                             (“Tenant”).
For good and valuable consideration, the receipt and sufficiency
of which hereby acknowledged, Landlord and Tenant hereby
mutually agree, as follows:

ARTICLE 1

BASIC LEASE INFORMATION AND CERTAIN
DEFINITIONS

     
1.01.     Each reference
in this Lease to information and definitions contained in
Article 1 and each use of the terms capitalized and defined
in this Section 1.01 shall be deemed to refer to, and shall
have the following meanings:

			
	 	(a)	
    Shopping Center: The Shops at Fair Lakes, located
    in Fairfax County, Virginia and being shown generally on
    Exhibit “A”.
    
	 
	 	(b)	
    Premises: 12735 Shops Lane, containing
    approximately Three Thousand Eight Hundred Eighteen (3,818)
    square feet of Floor Area and being on
    Exhibit “A” as the cross-hatched area.
    
	 
	 	(c)	
    Permitted Name: Alliance Bank
    
	 
	 	(d)	
    Permitted Use: Operation of a full-service
    banking institution [including walk-up Automatic Teller
    Machines], and for no other purpose.
    
	 
	 	(e)	
    Primary Term: Ten (10) years commencing on
    the Commencement Date (as defined in Section 2.02).
    
	 
	 	(f)	
    Option Term: Two (2) option term(s) of Five (5)
    years each, subject to Section 2.03 below.
    
	 
	 	(g)	
    Minimum Rent:
    

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lease Year		Per Year		Per Month		Per Sq. Ft.
	
		
		
		

	
    
    1
    

    	 	$	95,450.00	 	 	$	7,954.17	 	 	$	25.00	 
	
    
    2
    

    	 	$	98,313.50	 	 	$	8,192.79	 	 	$	25.75	 
	
    
    3
    

    	 	$	101,253.36	 	 	$	8,437.78	 	 	$	26.52	 
	
    
    4
    

    	 	$	104,307.76	 	 	$	8,692.31	 	 	$	27.32	 
	
    
    5
    

    	 	$	107,438.52	 	 	$	8,953.21	 	 	$	28.14	 
	
    
    6
    

    	 	$	110,645.64	 	 	$	9,220.47	 	 	$	28.98	 
	
    
    7
    

    	 	$	113,967.30	 	 	$	9,497.28	 	 	$	29.85	 
	
    
    8
    

    	 	$	117,403.50	 	 	$	9,783.63	 	 	$	30.75	 
	
    
    9
    

    	 	$	120,916.06	 	 	$	10,076.34	 	 	$	31.67	 
	
    
    10
    

    	 	$	124,543.16	 	 	$	10,378.60	 	 	$	32.62	 

			
	 	(h)	
    Percentage Rent Factor: N/A

Initial Breakpoint of Sales: N/A

	 

			
	 	(i)	
    Promotional Fund Assessment: N/A
    
	 
	 	(j)	
    Security Deposit: Seven Thousand Nine Hundred
    Fifty-Five and No/100 Dollars ($7,955.00)
    
	 
	 	(k)	
    Intentionally Omitted
    
	 
	 	(l)	
    Required Opening Date: March 1, 1998
    

 

			
	 	(m)	
    Tenant’s Address for Notices:
    

		
	 	
    12735 Shops Lane
    
	 	
    Fairfax, Virginia 22033
    

			
	 	(n)	
    Broker: The Irving Group
    
	 
	 	(o)	
    Landlord’s Address for Notices:
    

		
	 	
    Fair Lakes Center Associates L.P.
    
	 	
    c/o H/P Companies L.C.
    
	 	
    12500 Fair Lakes Circle, Suite 400
    
	 	
    Fairfax, Virginia 22033
    
	 	
    Attention: Retail Asset Manager
    

ARTICLE 2

DEMISE AND TERM

     
2.01.     Demise.
Landlord leases to Tenant, and Tenant leases from Landlord, the
Premises for the Term (hereinafter defined) and subject to the
provisions hereof.

     
2.02.     Primary
Term. The Primary Term of this Lease shall be for the period
specified in Article 1 Section 1.01 (e). The
Primary Term will commence on the Commencement Date, which for
purposes of this Lease shall be fifteen (15) days after the date
that Tenant receives Comptroller Approval pursuant to
Section 2.05 below.

     
2.03.     Option to
Renew. Tenant shall have the right to renew and extend the
Term of this Lease with respect to the Premises then subject to
this Lease for the Option Term (as defined in Article 1
Section 1.01 of this Lease) upon and subject to the
following terms and conditions:

			
	 	(a)	
    Tenant may extend this Lease for Two (2) Option
    Terms of Five (5) years each by Tenant’s giving written
    notice of its intent to extend the Term no later than thirteen
    (13) months prior to the expiration of the Primary Term
    (“Notice to Extend”) and after receipt of
    Landlord’s consent pursuant to this Section. Within
    fourteen (14) calendar days after receipt of Tenant’s
    Notice to Extend, Landlord shall provide Tenant with written
    notice of the market rate as reasonably determined by Landlord
    for such applicable Option Term (“Landlord’s
    Notice”). No later than twelve (12) months prior to the
    expiration of the Primary Term, Tenant shall give Landlord its
    final written notice (“Final Notice to Extend”) as to
    whether Tenant elects to exercise such option to extend the
    Term. Each Option Term shall commence immediately upon the
    expiration of the Primary Term or the preceding Option Term, as
    applicable, and upon exercise of such renewal option the
    “Expiration Date” of the Primary Term or the preceding
    Option Term, as applicable, shall automatically become the last
    day of the Option Term. If Tenant does not renew the Lease in a
    timely manner, then Tenant’s rights with respect to the
    Option Term shall expire and be of no force or effect.
    
	 
	 	(b)	
    The exercise by Tenant of the renewal option(s)
    set forth herein must be made, if at all, by written notice
    executed by Tenant and delivered to Landlord on or before the
    date set forth hereinabove. Once Tenant has elected to exercise
    its renewal option pursuant to the Final Notice to Extend,
    Tenant may not thereafter revoke such exercise. Tenant shall not
    have the right to exercise a renewal option if Tenant is in
    default beyond applicable notice and cure periods provided
    

2

 

		
	 	
     under this Lease, either at the time Tenant
    gives notice of its election to renew, or immediately prior to
    the commencement of an Option Term. Tenant’s failure to
    exercise timely a renewal option for any reason whatsoever shall
    conclusively be deemed a waiver of such renewal option and all
    successive renewal options.
    

			
	 	(c)	
    Tenant shall take the Premises
    “as is” for the Option Term(s) and Landlord shall
    have no obligation to make any improvements or alterations to
    the Premises.
    
	 
	 	(d)	
    Intentionally Omitted
    
	 
	 	(e)	
    Minimum Rent per square foot of Rentable Area of
    the Premises for each Option Term shall be the amount set forth
    in Section 1.01(g) or if none is set forth, the then market
    rate as reasonably determined by Landlord multiplied by the
    number of square feet of Rentable Area of the Premises;
    provided, that in no event shall the Minimum Rent for the first
    year of an Option Term be less than the Minimum Rent in effect
    immediately prior to the expiration of the Primary Term or the
    preceding Option Term, as applicable.
    
	 
	 	(f)	
    Except as set forth in this Section, the leasing
    of the Premises for an Option Term shall be upon the same terms
    and conditions as are applicable for the Primary Term, and shall
    be upon and subject to all of the provisions of this Lease,
    including, without limitation, the obligation of Tenant to pay
    Tenant’s Additional Rent under the Lease.
    
	 
	 	(g)	
    The parties agree that the current use of the
    Premises is not the “Highest and Best Use” (as
    hereinafter defined) for the Premises, meaning that the Premises
    is not currently being used at the maximum allowable FAR (the
    “Highest and Best Use”). Notwithstanding the
    foregoing, if Tenant properly exercises its renewal option as
    provided above, Landlord shall have the right to reject
    Tenant’s exercise of its such renewal option by electing in
    good faith to convert the use of the Premises to the Highest and
    Best Use. In such event, Landlord’s Notice shall contain
    the terms and conditions for the Highest and Best Use as
    determined by Landlord in Landlord’s sole discretion,
    including the size of the proposed improvements for the Highest
    and Best Use.
    
	 
	 	(h)	
    (i) Upon receipt of Landlord’s Notice,
    Tenant may negate Landlord’s rejection of Tenant’s
    exercise of its option by (i) agreeing to expand its use of
    the Premises to the Highest and Best Use, while retaining its
    obligation to use the Premises in accordance with Tenant’s
    Permitted Use under the Lease, and (ii) by executing
    Landlord’s Notice where designated and delivering it to
    Landlord simultaneously with Tenant’s Final Notice to
    Extend pursuant to subsection (a) above. If Tenant fails to
    execute and deliver Landlord’s Notice to Landlord within
    such period, Tenant shall be deemed to have waived the right to
    exercise its Option Term [and any remaining Option Term(s)]
    under the Lease.
    

		
	 	
     (ii) If Tenant agrees to the terms of
    Landlord’s Notice pursuant to subsection (i) above,
    Tenant shall be required to obtain all applicable governmental
    and other approvals and to finalize all work to be performed in
    order to convert its use of the Premises to the Highest and Best Use (the “Option Work”) on or
    

3

 

		
	 	
    before the expiration of the First Lease Year of
    the applicable Option Term. Tenant shall perform the Option Work
    pursuant to the terms of Section 22.25 below. The lease of
    the Premises, as expanded in connection with the Option Work
    (the “FAR Premises”) shall be on the same terms and
    conditions as are set forth in this Lease, except that Minimum
    Rent for the FAR Premises shall be at the current market rent as
    determined in Landlord’s reasonable discretion pursuant to
    subsection (e) above. If Tenant fails to complete the
    Option Work within the time period stated in this Section,
    Tenant shall nonetheless be required to pay Minimum Rent at the
    market rate determined by Landlord for the FAR Premises as of
    the commencement of the Second Lease Year of the applicable
    Option Term.
    

			
	 	(i)	
    The right to exercise the above-referenced option
    shall be personal to Tenant and shall not apply to any assignees
    or sublessees.
    

     
2.04.     Term.
The phrase “Term” when used in this Lease refers to
the Primary Term and any extensions thereof.

     
2.05.     Contingencies.

     
(a) On or before the fifth (5th) day after
the date this Lease is executed by Landlord, Tenant shall file
an application with the State Banking Commission, the Federal
Reserve and the FDIC (collectively, the “Comptroller”)
to obtain permission to operate a full service bank at the
Premises (“Comptroller Approval”). Tenant shall use
its best efforts to obtain Comptroller Approval as soon as
possible thereafter. Tenant shall respond to all inquiries and
requests for information from the Comptroller and from all
applicable governmental authorities in connection with obtaining
such approval and will promptly pay all applicable fees and
charges in connection therewith. Upon receiving Comptroller
Approval or denial thereof, Tenant shall immediately notify
Landlord. Tenant shall promptly notify Landlord in writing of
the date Tenant receives approval from the Comptroller. If,
through no fault of Tenant, Tenant has not received Comptroller
Approval within ninety (90) days after the date of this Lease
(the “Contingency Period”), (i) Landlord or
Tenant may terminate this Lease upon written notice to the other
given at any time after said 90-day period but before obtaining
Comptroller Approval, or (ii) Landlord and Tenant may
mutually agree to extend the Contingency Period for reasonable
period of time.

     
(b) This Lease is subject to Landlord’s
obtaining an agreement (a “Termination Agreement”)
whereby the tenant currently occupying the Premises (the
“Existing Tenant”) terminates any rights it may have
to the Premises prior to the date Landlord delivers possession
of the Premises to Tenant. Notwithstanding the foregoing, the
Termination Agreement shall not be effective until Tenant has
obtained Comptroller Approval subject to subsection (a)
above. Landlord shall promptly and diligently pursue obtaining
the Termination Agreement, using commercially reasonable
efforts. If Landlord is unable to obtain a Termination Agreement
within the Contingency Period, either party to this Lease may
terminate this Lease upon notice to the other given at any time
after the expiration of the Contingency Period but before the
Termination Agreement is obtained. Notwithstanding the
foregoing, if Landlord and Tenant mutually agree to extend the
Contingency Period pursuant to subsection (a) above,
Landlord shall have the same additional period of time to obtain
the Termination Agreement.

4

 

ARTICLE 3

CONDITION OF THE PREMISES

     
Tenant shall take the Premises “as is”
for the Primary Term and any Renewal Term(s) without any
warranties or representations as to the Premises design,
function and/or appearance for Tenant’s contemplated use
and Landlord shall have no obligation to make any improvements
or alterations to the Premises. Tenant shall have the right to
inspect the Premises prior to lease execution upon notice to
Landlord and at such time and date that is agreeable to Landlord
and the Existing Tenant. Tenant shall open the Premises for
business with the public on the Commencement Date.

ARTICLE 4

GENERAL LEASE PROVISIONS

     
All of the provisions of the General Lease
Provisions attached hereto as Exhibit “C”
are by this reference incorporated as fully set forth herein.

ARTICLE 5

Intentionally Omitted

ARTICLE 6

LEASE DEFINED

     
6.01.     Lease
Defined. The term “Lease” collectively refers to
this Lease Agreement, together with the following Exhibits which
are attached hereto and incorporate herein by this reference:

	 	 	 	 	 
	
    
    Exhibit “A”
    

    	 	
    —
    	 	
    Site Plan
    
	
    
    Exhibit “B”
    

    	 	
    —
    	 	
    Construction Exhibit
    
	
    
    Exhibit “C”
    

    	 	
    —
    	 	
    General Lease Provisions
    
	
    
    Exhibit “D”
    

    	 	
    —
    	 	
    Intentionally Omitted
    
	
    
    Exhibit “E”
    

    	 	
    —
    	 	
    Sign Criteria
    
	
    
    Exhibit “F”
    

    	 	
    —
    	 	
    Amended and Restated Access Easement
    
	
    
    Exhibit “G”
    

    	 	
    —
    	 	
    Exclusions from Common Area Maintenance Costs
    

     
6.02.     Interpretation.
As more particularly described in Part XXII of the General
Lease Provisions, this Lease contains all of the agreements
between Landlord and Tenant with respect to the Premises and the
Shopping Center. The fact that parts of this Lease may be
printed while other parts are typewritten or written has no
significance. As set forth in Part XXII of the General
Lease Provisions, Landlord and Tenant agree that this Lease is a
single integrated document and that no particular part of the
Lease shall control, but all parts shall be given equal effect.

5

 

     
IN WITNESS WHEREOF, Landlord and Tenant have
executed this Lease as of the date and year first written above.

		
	 	
    LANDLORD:
	 
	 	
    THE SHOPS AT FAIR LAKES, L.P.,
	 	
    a Virginia limited partnership
    

			
	 	BY: 	
    /s/ Milton J. Peterson
    

		
	 	
    

	 	
    NAME: Milton J. Peterson
    
	 	
    ITS: Authorized Representative
    
	 
	 	
    TENANT:
	 
	 	
    ALLIANCE BANK
	 	
    a Bank in Organization
    

			
	 	BY: 	
    /s/ Donald E. Ervin
    

		
	 	
    

	 	
    NAME: Donald E. Ervin
    
	 	
    ITS: President
    

6

 

EXHIBIT “A”

SITE PLAN

A-1

 

 

EXHIBIT “B”

Dated September 15th, 1997

BETWEEN

Fair Lakes Center Associates, L.P.

(“Landlord”)

AND

Alliance Bank, a Bank in Organization

(“Tenant”)

     
This Exhibit “B” is attached to,
and made a part of, that certain Lease, of even date herewith,
by and between Landlord and Tenant. The terms used in this
Exhibit that are defined in the Lease shall have the same
meanings as provided in the Lease.

     
The purposes of this Exhibit is to set forth the
relative rights and obligations of Landlord and Tenant with
respect to the construction and installation of any tenant
improvements in the Premises.

A.     Definitions.

     
1.     Intentionally
Omitted

     
2.     Intentionally
Omitted

     
3.     “Tenant’s
Work” means all improvements to the Premises which are
necessary or required by the Approved Plans (hereinafter
defined).

     
4.     “Tenant’s
Plans” means all plans, specifications and list of
materials necessary to enable Landlord to accurately understand
and review all of Tenant’s Work.

     
5.     “Approved
Plans” means the Tenant’s Plans approved by Landlord
pursuant to Paragraph C.(1) of this Exhibit.

     
6.     “Landlord’s
Architect” means the architect selected from time to time
by Landlord.

     
7.     “Tenant’s
Contractor” means the person or firm, from time to time,
selected by Tenant and approved by Landlord to construct and
install the Tenant’s Work.

     
8.     “Leasehold
Improvements” means the aggregate of any existing
improvements in the Premises and Tenant’s Work.

     
9.     Intentionally
Omitted

B.     Intentionally
Omitted.

C.     Tenant’s
Work.

     
1.     On or before the
Deadline for Submission of Tenant’s Plans, Tenant shall
submit to Landlord, for its approval, the Tenant’s Plans.
The Tenant’s Plans shall consist of, without limitation,
design and layout work and all other architectural, structural,
mechanical, plumbing and electrical plans and specifications for
all of the Tenant’s Work, together with such working
drawings as are required by either (i) Landlord in its sole
discretion or (ii) for Tenant to obtain all permits and
licenses required to construct the Tenant’s work. Within
thirty (30) days after Landlord receives the Tenant’s
Plans, Landlord shall notify Tenant, in writing, as to whether
it approves or disapproves Tenant’s Plans. If Landlord, in
its sole discretion, 

B-1

 

disapproves the Tenant’s Plans, it shall
state its specific objections and Tenant shall promptly
thereafter resubmit the Tenant’s Plans revised to satisfy
those objections. The forgoing procedure shall continue
expeditiously until Landlord finally approves a final set of the
Tenant’s Plans. Once the final set of Tenant’s Plans
are approved by Landlord the final set shall be considered
“Approved Plans”.

     
2.     All
architectural, mechanical, and electrical plans and
specifications for the Tenant Work must be approved by Landlord.
Any changes in the Approved Plans must also be approved by
Landlord. Tenant shall not be permitted to modify the Building,
the premises, or Shopping Center in any way, including but not
limited to the structural, mechanical, and electrical systems,
except as approved by Landlord on the Approved Plans. No
alterations by Tenant to the Leasehold Improvements and the
Premises shall be allowed at any time except as provided in the
Lease.

     
3.     Once the Approved
Plans have been developed, Tenant, at its sole cost and expense,
shall apply for and obtain any and all governmental permits,
licenses and/or approvals which are required for Tenant to
construct the Tenant’s Work in accordance with the Approved
Plans. (The foregoing approvals, licenses and permits are
collectively referred to as the “Tenant Permits”.)

     
4.     One the Tenant
has obtained the Tenant Permits, Tenant shall post with Landlord
either a payment and performance bond naming Landlord as the
sole obligee or an irrevocable clean letter of credit to the
benefit of Landlord issued by a federally insured bank
acceptable to Landlord in an amount equal to 120% of the cost to
complete the Tenant’s Work as determined by Landlord’s
Architect (the foregoing payment and performance bond and/or
Approved Letter of Credit is hereinafter referred to as the
“Construction Deposit”). The Construction Deposit
shall be held by Landlord until such time as Tenant has
(i) completed construction of the Tenant’s Work,
delivered to Landlord final releases of liens from Tenant’s
Contractor and all subcontractors, materialmen and suppliers
providing work, labor, materials or supplies incorporated into
the Tenant’s Work and (ii) has delivered to Landlord a
certificate of occupancy or equivalent evidence issued by the
appropriate governmental agencies evidencing that the
Tenant’s Work has been completed in accordance with all
applicable laws and the Premises may be lawfully occupied for
the Permitted Use. In the event of a default by Tenant under
this Exhibit and/or the Lease, Landlord reserves the right to
cure such default and deduct from the Construction Deposit the
costs incurred by Landlord together with interest thereon at the
Interest Rate. Tenant shall have no right to commence
construction of the Tenant’s Work until such time as Tenant
has delivered to Landlord the Construction Deposit and evidence
that Tenant has insurance which complied with the provisions of
Part IV of the General Lease Provisions.

     
5.     Tenant shall
perform the Tenant’s Work in a first class workmanlike
manner and in accordance with all applicable laws, ordinances
and regulations. It shall be the responsibility of Tenant to
obtain the Tenant Permits and any and all permits, licenses and
approvals necessary or required for Tenant to construct the
Tenant’s Work, to occupy the Premises, and to operate
therein the Permitted Use. Tenant further agrees that, with
respect to its construction of the Tenant’s Work, it will
(i) not damage, delay or interfere with the prosecution or
completion of any work being performed by Landlord or any other
person(s) in or about the Premises, the Building or the rest of
the Shopping Center; (ii) comply with all procedures and
regulations prescribed by Landlord, from time to time, for the
coordination of Tenant’s Work and activities with any other
work being performed by Landlord or any other construction in
the Shopping Center; (iii) conform to all of
Landlord’s 

B-2

 

regulations with respect to construction and
labor and not do or permit anything to be done that might create
(or hinder the cessation of) any work stoppage, picketing or
other labor disruption or dispute.

     
6.     Tenant shall be
required to limit its construction activities to the Premises
and/or areas designated by Landlord. It will be the
responsibility of the Tenant to store all its materials,
supplies and equipment within the Premises, locking the same at
the end of each day, it being agreed that Landlord shall have no
responsibility or liability whatsoever for any loss or damage to
any fixtures or equipment installed or left in the Premises.
Tenant shall be required to repair, replace or restore any
damage to the Building, Common Areas or Shopping Center caused
by Tenant, Tenant’s Contractor and/or its employees, agents
or permittees.

     
7.     Tenant at its
sole expense will carry Builders Risk coverage during
construction activities in an amount equal to 100% of the
replacement cost of the completed work. Tenant shall hold
harmless and indemnify Landlord from any claims, expenses, or
judgments arising from Tenant’s Work or any other tenant
improvements or construction, materials used or stored for said
improvements, or the material, equipment, operations/activities
of their contractors and subcontractors. Tenant shall also hold
harmless and indemnify Landlord against financial losses arising
from any non-compliance with state, county and Federal codes,
permits or environmental impact resulting from Tenant’s
Work, or any other tenant improvements or construction of
expansion space.

B-3

 

EXHIBIT “C”

GENERAL LEASE PROVISIONS

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 
	
    PART I — RENT
    	 	 	C-1	 
	 	
    
    Section 1.01.
    

    	 	
    Security Deposit
    	 	 	C-1	 
	 	
    
    Section 1.02.
    

    	 	
    Lease Year and Calendar Year
    	 	 	C-1	 
	 	
    
    Section 1.03.
    

    	 	
    Minimum Rent
    	 	 	C-1	 
	 	
    
    Section 1.04.
    

    	 	
    Tenant’s Proportionate Share of Common Area
    Maintenance Costs and Insurance
    	 	 	C-2	 
	 	
    
    Section 1.05.
    

    	 	
    Intentionally Omitted
    	 	 	C-2	 
	 	
    
    Section 1.06.
    

    	 	
    “Additional Rent” and “Rent”
    Defined
    	 	 	C-2	 
	 	
    
    Section 1.07.
    

    	 	
    Net Lease
    	 	 	C-3	 
	 	
    
    Section 1.08.
    

    	 	
    Interest and Late Charges
    	 	 	C-3	 
	 
	
    PART II — COMMON AREAS
    	 	 	C-3	 
	 	
    
    Section 2.01.
    

    	 	
    General
    	 	 	C-3	 
	 	
    
    Section 2.02.
    

    	 	
    Tenant’s Right to Use Common Areas
    	 	 	C-3	 
	 	
    
    Section 2.03.
    

    	 	
    Parking Areas
    	 	 	C-4	 
	 	
    
    Section 2.04.
    

    	 	
    Common Area Maintenance Costs
    	 	 	C-4	 
	 	
    
    Section 2.05.
    

    	 	
    Landlord’s Duties
    	 	 	C-4	 
	 
	
    PART III — TAXES
    	 	 	C-4	 
	 	
    
    Section 3.01.
    

    	 	
    Real Estate Taxes
    	 	 	C-4	 
	 	
    
    Section 3.02.
    

    	 	
    Personal Property
    	 	 	C-5	 
	 
	
    PART IV — INDEMNITY AND
    INSURANCE
    	 	 	C-5	 
	 	
    
    Section 4.01.
    

    	 	
    Indemnification by Tenant
    	 	 	C-5	 
	 	
    
    Section 4.02.
    

    	 	
    Tenant’s Insurance
    	 	 	C-6	 
	 	
    
    Section 4.03.
    

    	 	
    Shopping Center Insurance
    	 	 	C-7	 
	 	
    
    Section 4.04.
    

    	 	
    Waiver of Subrogation
    	 	 	C-8	 
	 
	
    PART V — Intentionally Omitted
    	 	 	C-8	 
	 
	
    PART VI — NOTICES
    	 	 	C-8	 
	 	
    
    Section 6.01.
    

    	 	
    Intentionally Omitted
    	 	 	C-8	 
	 	
    
    Section 6.02.
    

    	 	
    Intentionally Omitted
    	 	 	C-8	 
	 	
    
    Section 6.03.
    

    	 	
    Notices and Payments
    	 	 	C-8	 
	 
	
    PART VII — USE AND OPERATING
    REQUIREMENTS
    	 	 	C-8	 
	 	
    
    Section 7.01.
    

    	 	
    General Operating Requirements
    	 	 	C-8	 
	 	
    
    Section 7.02.
    

    	 	
    Affirmative Covenants
    	 	 	C-9	 
	 	
    
    Section 7.03.
    

    	 	
    Negative Covenants
    	 	 	C-10	 
	 	
    
    Section 7.04.
    

    	 	
    Sign Program
    	 	 	C-11	 
	 	
    
    Section 7.05.
    

    	 	
    Exterior of Building — Roof of Building
    	 	 	C-11	 
	 	
    
    Section 7.06.
    

    	 	
    Hazardous Materials
    	 	 	C-11	 
	 	
    
    Section 7.07.
    

    	 	
    Compliance with Laws
    	 	 	C-12	 
	 
	
    PART VIII — UTILITIES
    	 	 	C-13	 
	 	
    
    Section 8.01.
    

    	 	
    Tenant Responsible for Utilities
    	 	 	C-13	 
	 	
    
    Section 8.02.
    

    	 	
    Utility Charges
    	 	 	C-13	 
	 	
    
    Section 8.03.
    

    	 	
    No Overloading
    	 	 	C-13	 
	 
	
    PART IX — LIENS
    	 	 	C-13	 
	 
	
    PART X — ENTRY INTO PREMISES
    	 	 	C-13	 
	 	
    
    Section 10.01.
    

    	 	
    Landlord’s Right to Enter
    	 	 	C-13	 
	 	
    
    Section 10.02.
    

    	 	
    Display
    	 	 	C-14	 
	 
	
    PART XI — MAINTENANCE,
    ALTERATION AND CONSTRUCTION
    	 	 	C-14	 
	 	
    
    Section 11.01.
    

    	 	
    Landlord’s Maintenance
    	 	 	C-14	 
	 	
    
    Section 11.02.
    

    	 	
    Tenant’s Maintenance
    	 	 	C-14	 
	 	
    
    Section 11.03.
    

    	 	
    Limitation on Tenant’s Alterations
    	 	 	C-14	 
	 	
    
    Section 11.04.
    

    	 	
    Changes to Shopping Center
    	 	 	C-15	 
	 	
    
    Section 11.05.
    

    	 	
    Performance of Work By Landlord
    	 	 	C-15	 
	 	
    
    Section 11.06.
    

    	 	
    Miscellaneous
    	 	 	C-15	 
	 
	
    PART XII — DAMAGE AND
    DESTRUCTION
    	 	 	C-15	 
	 	
    
    Section 12.01.
    

    	 	
    General Restoration Obligation
    	 	 	C-15	 
	 	
    
    Section 12.02.
    

    	 	
    Termination for Damage to Premises
    	 	 	C-16	 

C-i

 

	 	 	 	 	 	 	 	 
	 	
    
    Section 12.03.
    

    	 	
    Termination For Damage to Shopping Center
    	 	 	C-16	 
	 	
    
    Section 12.04.
    

    	 	
    Time for Restoration
    	 	 	C-16	 
	 	
    
    Section 12.05.
    

    	 	
    Time for Termination
    	 	 	C-16	 
	 	
    
    Section 12.06.
    

    	 	
    No Abatement
    	 	 	C-16	 
	 
	
    PART XIII — EMINENT DOMAIN
    	 	 	C-17	 
	 	
    
    Section 13.01.
    

    	 	
    Complete Taking
    	 	 	C-17	 
	 	
    
    Section 13.02.
    

    	 	
    Partial Taking
    	 	 	C-17	 
	 	
    
    Section 13.03.
    

    	 	
    Substantial Taking of Shopping Center
    	 	 	C-17	 
	 	
    
    Section 13.04.
    

    	 	
    Damages
    	 	 	C-18	 
	 	
    
    Section 13.05.
    

    	 	
    Termination Date
    	 	 	C-18	 
	 
	
    PART XIV — SUBORDINATION;
    ESTOPPEL CERTIFICATE; QUIET ENJOYMENT
    	 	 	C-18	 
	 	
    
    Section 14.01.
    

    	 	
    Subordination of Lease
    	 	 	C-18	 
	 	
    
    Section 14.02.
    

    	 	
    Notice to Holder of Encumbrance
    	 	 	C-18	 
	 	
    
    Section 14.03.
    

    	 	
    Estoppel Certificate
    	 	 	C-19	 
	 	
    
    Section 14.04.
    

    	 	
    Recordation
    	 	 	C-19	 
	 	
    
    Section 14.05.
    

    	 	
    Quiet Enjoyment
    	 	 	C-19	 
	 
	
    PART XV — ASSIGNMENT AND
    TRANSFERS
    	 	 	C-19	 
	 	
    
    Section 15.01.
    

    	 	
    General Prohibition
    	 	 	C-19	 
	 	
    
    Section 15.02.
    

    	 	
    Corporate or Partnership Transactions
    	 	 	C-21	 
	 
	
    PART XVI — BANKRUPTCY OR
    INSOLVENCY
    	 	 	C-21	 
	 	
    
    Section 16.01.
    

    	 	
    Events of Bankruptcy
    	 	 	C-21	 
	 	
    
    Section 16.02.
    

    	 	
    Lanlord’s Remedies
    	 	 	C-21	 
	 	
    
    Section 16.03.
    

    	 	
    Trustee’s Rights to Assume or Assign
    	 	 	C-22	 
	 	
    
    Section 16.04.
    

    	 	
    Adequate Assurance of Future Performance
    	 	 	C-22	 
	 	
    
    Section 16.05.
    

    	 	
    Reference to Bankruptcy Code and Terms
    	 	 	C-23	 
	 	
    
    Section 16.06.
    

    	 	
    Tenant’s Burden
    	 	 	C-23	 
	 
	
    PART XVII — EVENTS OF DEFAULT
    AND REMEDIES
    	 	 	C-24	 
	 	
    
    Section 17.01.
    

    	 	
    Events of Default
    	 	 	C-24	 
	 	
    
    Section 17.02.
    

    	 	
    Remedies
    	 	 	C-24	 
	 	
    
    Section 17.03.
    

    	 	
    Landlord Default
    	 	 	C-25	 
	 	
    
    Section 17.04.
    

    	 	
    Self Help
    	 	 	C-25	 
	 
	
    PART XVIII — OWNERSHIP OF
    PERSONAL PROPERTY AND SURRENDER OF PREMISES
    	 	 	C-25	 
	 	
    
    Section 18.01.
    

    	 	
    Surrender
    	 	 	C-25	 
	 	
    
    Section 18.02.
    

    	 	
    Ownership of Personal Property
    	 	 	C-25	 
	 
	
    PART XIX — HOLDOVER BY TENANT
    	 	 	C-26	 
	 
	
    PART XX — EXCUSE FOR
    NON-PERFORMANCE
    	 	 	C-26	 
	 
	
    PART XXI — RULES AND
    REGULATIONS
    	 	 	C-26	 
	 
	
    PART XXII — MISCELLANEOUS
    PROVISIONS
    	 	 	C-26	 
	 	
    
    Section 22.01.
    

    	 	
    Definition of Landlord and Tenant
    	 	 	C-26	 
	 	
    
    Section 22.02.
    

    	 	
    Adding and Withdrawing Property
    	 	 	C-27	 
	 	
    
    Section 22.03.
    

    	 	
    Captions
    	 	 	C-27	 
	 	
    
    Section 22.04.
    

    	 	
    Joint and Several Obligations
    	 	 	C-27	 
	 	
    
    Section 22.05.
    

    	 	
    Persons
    	 	 	C-27	 
	 	
    
    Section 22.06.
    

    	 	
    Remedies Not Exclusive
    	 	 	C-27	 
	 	
    
    Section 22.07.
    

    	 	
    Time of the Essence
    	 	 	C-28	 
	 	
    
    Section 22.08.
    

    	 	
    Successors and Assigns
    	 	 	C-28	 
	 	
    
    Section 22.09.
    

    	 	
    Interpretation
    	 	 	C-28	 
	 	
    
    Section 22.10.
    

    	 	
    Concessionaires
    	 	 	C-28	 
	 	
    
    Section 22.11.
    

    	 	
    No Partnership
    	 	 	C-28	 
	 	
    
    Section 22.12.
    

    	 	
    No Waiver
    	 	 	C-28	 
	 	
    
    Section 22.13.
    

    	 	
    Lease Contains All Agreements
    	 	 	C-29	 
	 	
    
    Section 22.14.
    

    	 	
    Brokers
    	 	 	C-29	 
	 	
    
    Section 22.15.
    

    	 	
    Partial Invalidity
    	 	 	C-29	 
	 	
    
    Section 22.16.
    

    	 	
    Effective Date of Terms
    	 	 	C-29	 
	 	
    
    Section 22.17.
    

    	 	
    Other Agreements
    	 	 	C-29	 
	 	
    
    Section 22.18.
    

    	 	
    Waiver of Trial by Jury
    	 	 	C-30	 
	 	
    
    Section 22.19.
    

    	 	
    Authority
    	 	 	C-30	 
	 	
    
    Section 22.20.
    

    	 	
    Attorneys’ Fees and Legal Expenses
    	 	 	C-30	 

C-ii

 

	 	 	 	 	 	 	 
	
    
    Section 22.21.
    

    	 	
    Exhibits
    	 	 	C-30	 
	
    
    Section 22.22.
    

    	 	
    Governing Laws
    	 	 	C-30	 
	
    
    Section 22.23.
    

    	 	
    Intentionally Omitted
    	 	 	C-30	 
	
    
    Section 22.24.
    

    	 	
    Termination Option
    	 	 	C-30	 

C-iii

 

EXHIBIT “C”

GENERAL LEASE PROVISIONS

PART I — RENT

 

		
	Section 1.01.	
    Security Deposit.

     
(a) Concurrent with the execution of this
Lease Tenant shall pay to Landlord the Security Deposit which
shall be held by Landlord as security for the full and faithful
performance by Tenant of each and every term, provision,
covenant and condition of this Lease. If Tenant shall not accept
possession of the Premises and/or does not open for business,
then the Security Deposit shall be retained by and become the
property of Landlord and shall be deemed partial consideration
for reservation of Premises exclusively for Tenant’s use
and shall not be construed a settlement. The Security Deposit
shall not bear interest and shall not be considered an advance
payment of Rent (or any other sums payable by Tenant under this
Lease) or a measure of Landlord’s damages in case of a
default by Tenant.

     
(b) If Tenant shall fully and faithfully
comply with all the terms, provisions, covenants and conditions
of this Lease, the Security Deposit (or any balance thereof)
shall be returned to Tenant, without interest, after the
termination of this Lease, the removal of Tenant, the surrender
of possession of the Premises and after the reconciliation of
all Rent that may be due or any other sums payable by Tenant
under this Lease.

     
(c) If Landlord transfers its interest under
this Lease, Landlord shall assign the Security Deposit to the
new landlord and thereafter Landlord shall have no further
liability for the return of the Security Deposit, and Tenant
agrees to look solely to the new landlord for the return of the
Security Deposit. Tenant agrees that it will not assign or
encumber or attempt to assign or encumber the monies deposited
as security and that Landlord, its successors and assigns, may
return the Security Deposit to the original Tenant and shall be
relieved of any liability therefor, regardless of one or more
assignments of the Lease or any such actual or attempted
assignment or encumbrances of the monies held as the Security
Deposit.

 

		
	Section 1.02.	
    Lease Year and Calendar Year.

     
(a) The term “Lease Year” means
consecutive twelve (12) month periods each beginning on the
Commencement Date and ending on the following anniversary of the
Commencement Date.

     
(b) The term “Calendar Year” means
a successive twelve (12) month period beginning January 1st
and ending December 31st.

 

		
	Section 1.03.	
    Minimum Rent.

     
During the Term of this Lease, Tenant shall pay a
Minimum Rent, which shall be the amount specified as Minimum
Rent in Article I of the Lease, to Landlord in lawful money
of the United States, without any prior demand and without any
offset or deduction whatsoever, in advance on the first day of
each calendar month during the Term of this Lease. Commencing on
the Commencement Date, Tenant shall receive a credit against
Minimum Rent in equal monthly installments of One Thousand Five
Hundred Ninety and  84/100 Dollars ($1,590.84), which
shall be credited against the Minimum Rent payable starting with
the month in which the Commencement Date falls and ending on
March 31, 1999. If Minimum Rent due for the month in which
the Rent Commencement Date falls is less than One Thousand Five
Hundred Ninety and  84/100 Dollars ($1,590.84), the
unused portion of the Rent Credit for that month shall be
credited against Minimum Rent due for the next month. If at any
time during the Term of this Lease, Tenant is in monetary
default beyond any applicable notice and cure periods, the Rent
Credit shall become immediately due and payable to Landlord as
Additional Rent.

C-1

 

 

		
	Section 1.04.	
    Tenant’s Proportionate share of Common
    Area Maintenance Costs and Insurance.

     
(a) Throughout the Term of this Lease,
Tenant shall pay in advance on a monthly basis, without demand,
Tenant’s Proportionate Share (hereinafter defined) of the
following costs and expenses incurred in connection with the
Shopping Center.

		
	 	     
    (i) Common Area Maintenance Costs (as
    defined in Section 2.04 of the General Lease
    Provisions); and
    
	 
	 	     
    (ii) Shopping Center Insurance (as defined
    in Section 4.03 of the General Lease Provisions).
    

     
(b) Tenant’s Proportionate Share shall
be twenty percent (20%) of the Common Area Maintenance Costs of
the Shopping Center.

     
(c) Such payments of Tenant’s
Proportionate Share of each shall be made as follows:

		
	 	     
    (i) on the first day of January of each
    Calendar Year during the Term, or as soon thereafter as
    practicable, Landlord shall furnish Tenant with Landlord’s
    estimate of each cost for the forthcoming Calendar Year. On the
    first day of each month during such Calendar Year, Tenant shall
    pay one-twelfth ( 1/12th) of Tenant’s Proportionate
    Share of each estimated cost. If for any reason Landlord has not
    provided Tenant with Landlord’s estimate of each costs on
    or before the first day of January of any Calendar Year during
    the Term, then until the first day of the calendar month
    following the month in which Tenant is given Landlord’s
    estimate of each cost, Tenant shall continue to pay to Landlord
    on the first day of each calendar month the monthly sum payable
    by Tenant for the month of December of the preceding Calendar
    Year. The foregoing notwithstanding, Landlord shall have the
    right from time to time during any Calendar Year, but not more
    frequently than once in any Calendar Year, to notify Tenant in
    writing of any change in Landlord’s estimate of each cost
    for the then current Calendar Year, in which event Tenant’s
    Proportionate Share of each cost, as previously estimated, shall
    be adjusted to reflect the amount shown in such notice and shall
    be effective, and due from Tenant, on the first day of each
    month following Landlord’s giving of such notice.
    
	 
	 	     
    (ii) On the first day of March of each
    Calendar Year during the Term or as soon thereafter as
    reasonably practical, Landlord shall furnish to Tenant a
    statement of the actual costs for the preceding Calendar Year.
    Within thirty (30) days after the delivery of that
    statement, Tenant shall make a lump sum payment equal to the
    amount, if any, by which Tenant’s Proportionate Share of
    each actual cost exceeds the amount, if any, which Tenant has
    paid towards each estimated cost. If Tenant’s Proportionate
    Share of each actual cost is less than the amount Tenant has
    paid toward each estimate cost, Landlord shall apply such amount
    to the next accruing installment(s) of Rent due hereunder. The
    effect of this Section is that Tenant will pay during each
    Calendar Year during the Term Tenant’s Proportionate Share
    of the actual costs for Common Area Maintenance and Shopping
    Center Insurance.
    

     
(d) Seller has subjected the Shopping Center
to that certain Amended and Restated Access Easement (the
“Easement Agreement”) attached hereto and made a part
hereof as Exhibit “F”. Tenant shall be
responsible for its “Allocable Share” of “Shared
Costs” pursuant to (and as defined in) the Easement
Agreement.

 

		
	Section 1.05.	
    Intentionally Omitted.

 

		
	Section 1.06.	
    “Additional Rent” and
    “Rent” Defined.

     
(a) In addition to the Minimum Rent,
Tenant’s Proportionate Share of Costs, all sums of money
required to be paid by Tenant 

C-2

 

to Landlord pursuant to this Lease shall be
considered “Additional Rent”.

     
(b) The term “Rent” as used in
this Lease collectively refers to Minimum Rent, Tenant’s
Proportionate Share of Costs and Additional Rent.

Section 1.07.     Net
Lease.

     
Landlord and Tenant intend that this Lease be a
net lease, that Landlord shall receive the Minimum Rent,
Tenant’s Proportionate Share of Costs and Additional Rent
as net income, and that Landlord is not intending to provide any
services other than those specifically set forth in this Lease.

Section 1.08.     Interest
and Late Charges; Default Rate.

     
If Tenant shall fail to pay, within five
(5) days after the date when due, any installment of Rent,
any and all such unpaid amounts shall bear interest at a rate of
interest equal to the greater of (i) eighteen percent
(18%) per annum; or (ii) four percent (4%) over
the prime rate of interest announced from time to time by Wells
Fargo Bank, N.A. (the higher rate being referred to as
“the Default Rate”) beginning on the due date, until
paid. In addition Tenant also agrees to immediately pay Landlord
One Hundred Dollars ($100) or five percent (5%) of the
unpaid portion of Rent installment, whichever is the greater
(“the Late Charge”) on the amount which was not paid
when due. Acceptance by Landlord of the Late Charge shall not
constitute a waiver of any rights or remedies of Landlord, but
merely a reimbursement for a portion of Landlord’s
administrative fees for Tenant’s failure to pay amounts
when due hereunder. In no event shall the Default Rate exceed
the maximum rate of interest permitted under Virginia law for
commercial loans.

PART II — COMMON
AREAS

Section 2.01.     General.

     
All areas and facilities within the Shopping
Center or serving the Shopping Center which are made available,
from time to time, for the non-exclusive use, convenience and
benefit of all tenants and occupants of the Shopping Center,
their employees, agents and invitees, shall constitute and are
herein referred to as “Common Areas”. The Common Areas
shall at all times be subject to the exclusive control and
management of Landlord or the owners thereof, either
individually or collectively, including the rights reserved by
Landlord and such owners from time to time, to establish, modify
and enforce reasonable rules and regulations with respect to all
Common Areas. During the Term of this Lease, Landlord shall
operate, maintain, repair and replace or cause to be operated,
maintained repaired and replaced, all or a portion of the Common
Areas, all in such manner as Landlord deems appropriate and in
the best interests of the Shopping Center and Tenant agrees to
pay Tenant’s Proportionate Share of such costs.

Section 2.02.     Tenant’s
Right to Use Common Areas.

     
Except as otherwise specifically provided in this
Lease, Tenant and its employees and invitees are authorized to
use the Common Areas in common with others entitled to the same.
Landlord, for itself and such other owners, hereby reserves the
right and power to eject or cause the ejection from the Common
Areas of any person or persons not authorized to use the Common
Areas or who are not using the Common Area in accordance with
this Lease or the rules and regulations relating to the Common
Areas. Nothing contained herein shall in any manner limit
Landlord’s or the other Shopping Center owner’s rights
to make changes to all or a portion of the Common Areas, which
right is specifically reserved hereby.

C-3

 

 

		
	Section 2.03.	
    Parking Areas.

     
Landlord and/or other owners of the Shopping
Center, either individually or collectively, may prescribe
certain sections within the Common Areas for use as parking
spaces by Tenant and Tenant’s employees, and Tenant shall
use and shall require Tenant’s employees to use, only such
designated sections for parking. Tenant shall have the exclusive
use of the parking area designated as “Tenant’s
Parking Area” on the attached Exhibit “A.”

 

		
	Section 2.04.	
    Common Area Maintenance Costs.

     
As used in this lease, the term Common Area
Maintenance Costs means the total of all costs related to owing,
maintaining, managing, operating, repairing, replacing,
insuring, enhancing and protecting the Common Areas, or
otherwise incurred by Landlord in performance of its obligations
hereunder (including, but not limiting the foregoing, any
payments which Landlord may make or incur in the provision of
utility services, common areas or stormwater management services
or other services to the Shopping Center, and costs incurred in
maintaining the Common Areas in compliance with all applicable
laws), together with an amount equal to ten percent (10%) of the
total cost and expense of all of the foregoing. There shall be
deducted from Common Area Maintenance Costs any payments which
Landlord may receive from other occupants or owners of the
Shopping Center for the provision of services included within
Common Area Maintenance Costs. Common Area Maintenance costs
shall not include the items listed as exclusions to Common Area
Maintenance Costs on Exhibit “G” attached hereto.

 

		
	Section 2.05.	
    Landlord’s Duties.

     
Landlord’s obligations in this Part II
shall not make Landlord liable for any damage to or loss of
property, including but not limited to, motor vehicles of
Tenant, or its employees, agents, customers or invites, unless
caused by the gross negligence or willful misconduct of Landlord
and not otherwise covered by Tenant’s insurance.

PART III — TAXES

 

		
	Section 3.01.	
    Real Estate Taxes.

     
Tenant covenants and agrees to pay all real
estate taxes, licensing taxes of Fairfax County, assessments,
water rates and charges, fire hydrant tax, street lighting tax
and other governmental charges, general and special, ordinary
and extraordinary unforeseen as well as foreseen, of any kind
and nature whatsoever, including but not limited to assessments
for public improvements or benefits which shall during the Term
hereby demised be laid, assessed, levied or imposed upon or
become due and payable and a lien upon the land and building of
which the Premises are a part (all of which taxes, assessments,
water rates, fire hydrant tax, street lighting tax, or charges,
levies and other governmental charges are hereinafter referred
to as “Real Estate Taxes”). The parcel upon which
Tenant’s Premises is known as Land Bay 7-B
Parcel B (the “Parcel”). All Real Estate Taxes
related to the Parcel will be directly billed to Tenant by the
respective authorities and directly paid to those authorities by
Tenant. Tenant shall have the right to protest to the
appropriate governmental taxing authority involved, in the
lawfully described manner, any such impositions and additional
impositions which may be levied or imposed on the Premises
during the Term. Real Estate Taxes for the fiscal period in
which Tenant takes possession under the terms hereof, and for
the fiscal year in which this Lease as renewed or extended under
the terms hereof terminates, shall be apportioned between
Landlord and Tenant as of the date of the taking of possession
under or the termination of this Lease. Real Estate Taxes
payable by 

C-4

 

Tenant under this Section shall not include the
items listed as exclusions to Common Area Maintenance Costs on
Exhibit “     ”.

Section
3.02.     Personal Property.

     
Tenant shall pay, before delinquency, all
property taxes and assessments on the furniture, fixtures,
equipment and other property of Tenant at any time situated on
or installed in the Premises and on additions and improvements
in the Premises. If any of the foregoing is assessed as part of
the real property of which the Premises are a part, Tenant shall
pay to Landlord upon demand the amount of such additional taxes
as may be levied against the real property by reason thereof.
For the purpose of determining such amount of additional taxes,
figures supplied by the local assessing authority as to any
amounts so assessed shall be conclusive.

PART IV — INDEMNITY AND
INSURANCE

Section
4.01.     Indemnification by
Tenant.

     
(a) Tenant hereby releases Landlord from any
liability for any loss or damage of any kind or for any injury
to or death of persons or damage to property of either party or
any other person from any cause whatsoever (including, without
limitation, bursting pipes, water leaks and smoke) by reason of
the construction, use, occupancy or enjoyment of the Premises by
Tenant or any person therein or holding under Tenant. Tenant
agrees to, and hereby does agree to defend, indemnify and save
harmless Landlord from all claims, actions, demands, damages,
costs and expenses and liability whatsoever, including
reasonable attorneys’ fees on account of any such real or
claimed loss or damage or liability, and from all liens, claims
and demands occurring or resulting directly or indirectly out
of, in or at the Premises, or arising out of the construction,
use, occupancy or enjoyment of the Premises, or any repairs or
alterations which may be made to the Premises, or occasioned in
whole or in part by any act or omission of Tenant, its agents,
contractors, servants, employees or invitees, in, at, upon or
from the Premises or any Common Areas or other part of the
Shopping Center. Tenant shall not, however, be liable for damage
or injury occasioned by the sole active negligence or willful
violations of this Lease by Landlord or its agents, contractors,
servants or employees, unless such damage or injury arises from
perils against which Tenant is required by this Lease to insure,
or against which perils Tenant actually carries insurance (even
though not required by this Lease). Landlord shall in no event
be liable to Tenant or anyone claiming by, under or through
Tenant for any loss or damage or liability resulting from the
acts or omissions of other tenants of the Shopping Center or by
any other third person who was not acting under the direction
and control of Landlord.

     
(b) Landlord hereby releases Tenant from any
liability for loss or damage or injury to or death of persons
arising from Common Areas owned and controlled by Landlord.
Landlord agrees to, and hereby does agree to defend, indemnify
and save harmless Tenant from all claims, actions, demands,
damages, costs and expenses and liability whatsoever, including
reasonable attorneys’ fees on account of any such real or
claimed loss or attorney’s fees on account of any such real
or claimed loss or damage or liability, and from all liens,
claims and demands occurring or resulting directly or indirectly
out of, in or at the Common Areas of the Shopping Center owned
and controlled by Landlord, or arising out of the construction,
use or enjoyment of the Common Areas owned and controlled by
Landlord, or occasioned in whole or in part by any act or
omission of Landlord, its agents, contractors, servants or
employees, in, at, upon or from the Common Areas owned and
controlled by Landlord or other part of the Shopping Center
owned and controlled by Landlord. Landlord shall not, however,
be liable for damage or injury occasioned by the negligence or
willful violations of this Lease by Tenant or its agents,
contractors, servants or employees, 

C-5

 

unless such damage or injury arises from perils
against which Landlord is required by this Lease to insure, or
against which perils Landlord actually carries insurance (even
though not required by this Lease).

 

		
	Section 4.02.	
    Tenant’s Insurance.

     
(a) From and after the date of delivery of
the Premises from Landlord to Tenant and continuing throughout
the Term of this Lease, Tenant shall carry and maintain, at its
sole cost and expense, the following types of insurance, in the
amounts specified and in the form hereinafter provided for:

		
	 	     
    (i) Comprehensive General Public Liability
    Insurance covering the Premises and Tenant’s use thereof
    against claims for bodily injury or death, personal injury and
    property damage occurring upon, in or about the Premises
    regardless of when such claims may be made. Such insurance shall
    have limits of not less than $1,000,000 for bodily injury to or
    death of any number of persons arising out of any one occurrence
    and $1,000,000 for property damage arising out of any one
    occurrence, or a combined single limit of at least $2,000,000
    may be provided in lieu of split limits. The insurance coverage
    required under this subparagraph shall include coverage for
    liability hazards as defined in the policy forms and
    endorsements for premises and operations liability, per project
    aggregate endorsements, personal injury liability, broad form
    property damage liability and contractual liability arising out
    of this Lease. If required by Landlord from time to time, Tenant
    shall increase the limits of its comprehensive general public
    liability insurance to reasonable amounts customary for tenants
    in shopping centers.
    
	 
	 	     
    (ii) Statutory Workers’ Compensation
    Insurance to comply with the applicable laws of the state in
    which the Shopping Center is located and Employer’s
    Liability Insurance with limits of not less than $100,000 per
    occurrence (accident or disease), and $500,000 aggregate for
    bodily injury by accident or disease. This policy shall include
    a waiver of subrogation waiving rights of subrogation against
    the Landlord.
    
	 
	 	     
    (iii) All Risk Physical Damage Insurance
    covering Tenant’s trade fixtures, merchandise and personal
    property from time to time in, on or about the Premises, and all
    leasehold improvements to the Premises specifically including
    any heating and cooling facilities serving the Premises which
    may be located outside the Premises provided that Tenant shall
    have the option to self insure for plate glass. Such insurance
    (A) shall be written on a replacement cost basis in an amount at
    least equal to one hundred percent (100%) of the replacement
    cost of the insured property; and (B) shall provide protection
    against perils that are covered under standard insurance
    industry practices within the classification of special causes
    of loss. Tenant’s obligation to provide insurance pursuant
    to this subparagraph shall apply to all improvements and
    fixtures described herein, notwithstanding that some or all of
    such improvements and fixtures may have been installed by
    Tenant, Landlord, a prior tenant or any other party at any time
    before or after the delivery of the Premises to Tenant.
    
	 
	 	     
    (iv) Umbrella liability insurance in amount
    at least equal to Three Million Dollars ($3,000,000).
    
	 
	 	     
    (v) Business income insurance on an actual
    loss sustained basis, which insurance shall insure against the
    perils referred to in Section 4.01 of the General Lease
    Provisions.
    

     
(b) All policies of insurance provided for
shall be issued in form acceptable to Landlord, by insurance
companies having and maintaining at least an A-11 rating in the
most currently 

C-6

 

available “Best’s” Insurance
Reports, and admitted and licensed to do business in the State
in which the Shopping Center is located. Each and every such
policy:

		
	 	     
    (i) Shall be issued in the names of Tenant
    and shall name as Additional insureds; Landlord and any other
    parties in interest from time to time designated in writing by
    notice from Landlord to Tenant;
    
	 
	 	     
    (ii) Shall (or a certificate thereof shall)
    be delivered, together with a paid receipt therefor to Landlord
    and any such other parties in interest not later than the date
    of delivery of possession of the Premises to Tenant and
    thereafter at least thirty (30) days prior to the
    expiration of each such policy, and, as often as any such policy
    shall expire or terminate, renewal or additional policies shall
    be procured and maintained by Tenant in like manner and to like
    extent, and each certificate shall indicate specifically the
    form on which an occurrence basis policy is written, the policy
    deductible and that the insurer has waived any rights of
    subrogation it would otherwise have against Landlord or any
    owner of other parts of Shopping Center;
    
	 
	 	     
    (iii) Shall contain a provision that any
    misrepresentation or breach of the policy conditions by one
    insured shall not invalidate coverage for any other insured;
    
	 
	 	     
    (iv) Shall contain a provision that the
    insurer will give to Landlord and such other parties in interest
    at least thirty (30) days notice in writing in advance of
    the insurer’s intention to cancel, refuse to renew or
    otherwise terminate the policy, suspend or terminate any cover,
    reduce any policy limits, increase any policy deductibles or
    otherwise alter any terms or conditions of the policy;
    
	 
	 	     
    (v) Shall be written as a primary policy
    which does not contribute to and is not in excess of coverage
    which Landlord may carry, notwithstanding the requirement that
    Landlord be named as an additional insured and regardless of any
    other insurance that Landlord may elect to obtain;
    
	 
	 	     
    (vi) Shall not provide for deductibles in
    excess of $5,000;
    
	 
	 	     
    (vii) Shall provide the full amount of any
    losses sustained shall be payable for Landlord’s benefit
    under the terms of this Lease notwithstanding any act, omission
    or negligence of Landlord or Tenant which might otherwise result
    in a forfeiture of insurance coverage.
    

Section 4.03.     Shopping
Center Insurance.

     
(a) Subject to reimbursement by Tenant as
herein provided, Landlord shall maintain in effect at all times
during the Term of this Lease the following types of insurance
coverage for the Shopping Center, in the amounts specified and
in the form hereinafter provided for:

		
	 	     
    (i) Comprehensive General Public Liability
    Insurance covering the Common Areas against claims for bodily
    injury or death, personal injury and property damage occurring
    upon, in or about the Common Areas, such insurance to afford
    protection to the limit of not less than $2,000,000 in respect
    to injury or death to any number of persons arising out of any
    one occurrence and such insurance against property damage to
    afford protection to the limit of not less than $1,000,000 in
    respect to any one occurrence of property damage, or a combined
    single limit of $3,000,000.
    
	 
	 	     
    (ii) Special Causes of Loss Property
    Insurance covering the building of which the Premises
    constitutes a part (including exterior walls, downspouts, gutter
    and roof, and (at Landlord’s 

    

C-7

 

		
	 	
    option) excluding all improvements and fixtures
    required to be insured by Tenant, by the Lease, in an amount not
    less than ninety percent (90%) of full replacement cost
    (exclusive of the cost of excavations, foundations, and
    footings) providing protection against perils that are covered
    under standard insurance industry practices within the
    classification of special causes of loss, and such other risks
    as Landlord may from time to time determine and with any such
    deductibles as Landlord may from time to time determine.
    

     
(b) Any insurance obtained by Landlord may
be maintained by means of a policy or policies of blanket
insurance, covering additional items or locations or under a
plan of self-insurance. Landlord may maintain, at its option,
from time to time, such other additional insurance coverage as
Landlord may deem appropriate for the Shopping Center.

     
(c) Landlord’s insurance cost for
maintaining the insurance coverage referred to in this Section
shall be reimbursed by Tenant as part of Tenant’s
Proportionate Share of Shopping Center Insurance.

 

		
	Section 4.04.	
    Waiver of Subrogation.

     
These policies required by this Lease shall
provide for waivers of any right of subrogation that the insurer
of such party may acquire against the other party hereto
relating to the Premises, parking areas or the Common Areas and,
at Landlord’s request, against any other party with respect
to any such losses, which are required to be insured against or
which are actually insured against, even if the loss results
from a negligent act or omission.

PART V — Intentionally
Omitted

PART VI — NOTICES

 

		
	Section 6.01.	
    Intentionally Omitted.

 

		
	Section 6.02.	
    Intentionally Omitted.

 

		
	Section 6.03.	
    Notices and Payments.

     
Any notice or demand which either party to this
Lease is required or desires to give shall be given in writing
to Landlord’s Notice Address or Tenant’s Notice
Address, as may be applicable (or in the case of notices or
demands given to Tenant, Landlord may deliver the notice to the
Premises in lieu of delivery to Tenant’s Notice Address),
subject to the right of either party by notice similarly given
to the other party to change their respective address. All
payments by Tenant to Landlord pursuant to any provision of this
Lease, and all reports of Gross Sales, shall be delivered to
Landlord’s Notice Address or to such other place as
Landlord shall from time to time designate by notice in writing
to Tenant. All notices or demands shall be given by registered
or certified mail, return receipt requested, or by any overnight
or express mail service which provides receipts to indicate
delivery. All notices and demands given in accordance with the
provisions of this Section shall be conclusively deemed to have
been delivered on the date of first attempted delivery,
notwithstanding the refusal by either party to accept delivery.

PART VII — USE AND OPERATING
REQUIREMENTS

 

		
	Section 7.01.	
    General Operating Requirements.

     
Tenant shall open its business with the general
public no later than the Required Opening Date. During the Term
of the Lease, the Premises shall be continuously operated, used
and occupied only for the Permitted Use and for no other purpose
and 

C-8

 

operated under the Permitted Name and no other
tradename. Tenant agrees that it shall at all times during the
Term:

     
(a) Keep the Premises open for business
during hours of 9 a.m. to 4 p.m. Eastern Time Monday
through Thursday, 9 a.m. to 7 p.m. Eastern Time
Friday, and 9 a.m. to 12 p.m. Eastern Time on
Saturday, or such other business hours as Tenant shall
reasonably designate; and

     
(b) Operate its business in the entire
Premises in a high grade and reputable manner, maintaining in
the Premises an adequate staff of employees, and in general
shall employ its best business judgment, efforts and abilities
to operate Tenant’s business in an efficient and
businesslike manner.

 

		
	Section 7.02.	
    Affirmative Covenants.

     
Tenant shall:

     
(a) Keep all merchandise display windows,
signs and other advertising and display devices in the Premises
suitable lighted during such hours as Landlord may reasonably
require, including periods in addition to the business hours of
Tenant if in the opinion of Landlord such lighting is reasonably
necessary or desirable;

     
(b) Keep the Premises in a safe, neat,
clean, vermin free condition at all times;

     
(c) Store or stock in the Premises only such
goods, wares, merchandise or other property as shall be
reasonably required in connection with Tenant’s business on
the Premises, and not use any portion of the Premises for
storage or warehouse purposes beyond such needs;

     
(d) Use for office, clerical or other
non-selling purposes only such space in the Premises as is from
time to time reasonably required for Tenant’s business
therein;

     
(e) Store all trash and garbage in adequate
containers so as not to be visible to members of the public
shopping in the Shopping Center; maintain such containers in a
neat and clean condition and in a manner which will not create
or permit any health or fire hazard; and arrange for the regular
removal of trash and garbage at Tenant’s expense; provided,
however, that if Landlord shall furnish trash removal service,
Tenant shall pay Landlord monthly the reasonable costs for such
services as billed by Landlord;

     
(f) Refrain from burning any papers, trash
or garbage of any kind in or about the Premises;

     
(g) Refrain from overloading any floor in
the Premises;

     
(h) Refrain from using any portion of the
Premises as living quarters, sleeping apartments or lodging
rooms;

     
(i) Refrain from using the plumbing
facilities for any purpose other than that for which they were
constructed and refrain from disposing of any damaging or
injurious substance therein;

     
(j) Refrain from distributing any handbills
or other advertising matter on or about any part of the Shopping
Center, including the Premises;

     
(k) Use its best efforts to cause all trucks
servicing the Premises to be loaded and unloaded from the rear
of the Premises and prior to the hours when the Shopping Center
shall be open for business to the general public.

C-9

 

     
(l) Maintain the volume at which any music
system in the Premises is operated at a level which will not
cause annoyance to the other occupants of the Shopping Center or
to the general public shopping therein, and, comply with the
requirements of Landlord if Landlord determines that the volume
or use of such music system constitutes an annoyance and remove
such system if Landlord determines, in its sole judgment, that
Tenant’s use of the music system constitutes a nuisance; and

     
(m) Keep the Premises sufficiently heated to
prevent the freezing of water pipes and fixtures;

     
(n) Comply in all respects with the Shopping
Center Rules and Regulations established from time to time.

Section 7.03.     Negative
Covenants.

     
Tenant shall not;

     
(a) Conduct any going out of business, fire,
bankruptcy, auction or other distress sale on or about the
Premises;

     
(b) Change the exterior of the Premises or
any part thereof, or the color, size, location or composition of
any sign (hereinafter defined) that may have been theretofore
approved by Landlord;

     
(c) Use any sidewalks, walkways or other
areas of the Shopping Center for the keeping or displaying of
any merchandise or other object, including but not by way of
limitation, the use of any of the foregoing for any business,
occupation or undertaking;

     
(d) Place any fence, structure, building,
improvement, division, rail, sign or other advertising or
display device or obstruction of any type or kind upon Common
Areas, or any part thereof, or upon any vestibule, entrance or
return located within the Premises;

     
(e) Park, operate, load or unload any truck
or other delivery vehicle on any part of the Shopping Center
other than that portion from time to time designated by Landlord;

     
(f) Keep any live animals of any kind in,
about or upon the Premises;

     
(g) Install in, on or about the Premises any
advertising medium or other device which may be seen, heard or
experienced outside the Premises, such as flashing lights,
searchlights, loudspeakers, phonographs or radio or television
broadcasts;

     
(h) Maintain nor permit to be maintained
within the Premises any vending machines, video, electronic or
other game machines or amusement devices or any coin-operated
device of any nature, except vending machines solely for use by
Tenant or Tenant’s employees which are located only in
non-sales areas, and which are not available to customers; or

     
(i) Sell, distribute, display or offer for
sale any item which in Landlord’s good faith judgment, is
inconsistent with the quality of the operation of the Shopping
Center or which may tend to injure or detract from the moral
character or image of the Shopping Center, and without limiting
the generality of the foregoing, Tenant shall not sell,
distribute, display or offer for sale any paraphernalia used in
connection with any illegal drugs or any pornographic, lewd or
“adult” newspaper, book, magazine, film, picture,
representation or merchandise of any kind.

     
(j) Abandon, vacate or desert the Premises,
which shall not be defeated because Tenant may have left all or
any property in or on the Premises.

C-10

 

 

		
	Section 7.04.	
    Sign Program.

     
Landlord and/or the owners of parcels located
within the Shopping Center reserves the sole and exclusive right
to develop, modify and control the sign program for the Shopping
Center as currently set forth on
Exhibit “E” (the “Sign
Criteria”). Each sign or other advertising or display
device (collectively the “Sign”) of Tenant must
conform to the Sign Criteria. Tenant shall not erect, install or
maintain any Sign on the roof or exterior of the Premises or on,
in or about the windows or doors thereof, which shall be visible
to public view from the Shopping Center, without the prior
approval of Landlord, which approval shall not be unreasonably
withheld, conditioned or delayed. Promptly after delivery or
written notice from Landlord, Tenant shall remove any Sign
erected or maintained in violation of this Lease, and if Tenant
fails to remove the Sign promptly after delivery of such notice,
Landlord may enter upon the Premises and cause the same to be
removed, and the cost of such removal and the cost of restoring
any damaged property shall be paid by Tenant upon demand. At its
own expense. Tenant shall maintain and keep all its Signs in or
about the Premises clean and in good repair and shall pay for
all electric current required in connection with any such Sign.

 

		
	Section 7.05.	
    Exterior of Building — Roof of
    Building.

     
Landlord reserves the sole and exclusive use of
the canopy, if any, and roof and exterior walls of the Premises
and of the Shopping Center for such use as Landlord may deem
appropriate. Tenant shall not decorate, paint or in any other
manner alter, nor install or affix any awning, canopy, device,
fixture, antenna or attachment upon or to, the exterior or roof
of the Premises. Tenant, its agents, employees and contractors
shall have no right to use or enter upon the roof of the
Premises or the adjoining structure.

 

		
	Section 7.06.	
    Hazardous Materials.

     
(a) Except for those materials that are
necessary in the normal course of Tenant’s business
activities associated with the Permitted Use, Tenant, its
agents, employees, contractors or invites shall not
(i) cause or permit any Hazardous Materials (hereinafter
defined) to be brought upon, stored, used or disposed on, in or
about the Premises and/or Shopping Center, or (ii) permit
the release, discharge, spill or emission of any substance
considered to be a Hazardous Material from the Premises.

     
(b) Any Hazardous Materials permitted by
subparagraph (a), all containers therefor, and all materials
that have been contaminated by Hazardous Materials shall be
used, kept, stored and disposed of by Tenant in a manner that
shall in all respects comply with all applicable federal, state
and local laws, ordinances, regulations and standards.

     
(c) Tenant hereby agrees that it is and
shall be fully responsible for all costs, expenses, damages or
liabilities (including, but not limited to those incurred by
Landlord and/or its mortgagee) which may occur from the use,
storage disposal, release, spill, discharge or emissions of
Hazardous Materials by Tenant whether or not the same may be
permitted by this Lease. Tenant shall defend, indemnify and hold
harmless Landlord, its mortgagee and its agents from and against
any claims, demands, administrative orders, judicial orders,
penalties, fines, liabilities, settlements, damages, costs or
expenses (including, without limitation, reasonable attorney and
consultant fees, court costs and litigations expenses) of
whatever kind or nature, known or unknown, contingent or
otherwise, arising out of or in any way related to the use,
storage, disposal, release, discharge, spill or emission of any
Hazardous Material by Tenant, its agents, employees, contractors
or invites. The provisions of this Section shall be in addition
to any other obligations and 

C-11

 

liabilities Tenant may have to Landlord at law or
in equity and shall survive the transactions contemplated herein
or any termination of this Lease.

     
(d) As used in this Lease, the term
“Hazardous Materials” shall include, without
limitation:

		
	 	     
    (i) Those substances included within the
    definitions of “hazardous substances”, “hazardous
    materials”, “toxic substances,” or “solid
    waste” in the comprehensive Environmental Response
    Compensation and Liability Act of 1980
    (42 U.S.C. §9501 et
    seq.)(“CERCLA”), as amended by Superfund
    Amendments and Reauthorization Act of 1986 (“SARA”),
    the Resource Conservation and Recovery Act of 1976
    (“RCRA”), and the Hazardous Materials Transportation
    Act, and in the regulations promulgated pursuant to said laws,
    all as amended;
    
	 
	 	     
    (ii) Those substances listed in the United
    States Department of Transportation Table
    (49 CFR 172.101 and amendments thereto) or by the
    Environmental Protection Agency (of any successor agency) as
    hazardous substances (40 CFR Part 302 and amendments
    thereto);
    
	 
	 	     
    (iii) Any material, waste or substance which
    is (A) petroleum, (B) asbestos,
    (C) polychlorinated biphenyls, (D) designated as a
    “hazardous substance” pursuant to Section 311 of
    the Clean Water Act, 33 U.S.C. §1251 et
    seq. (33 U.S.C. §1321) or listed pursuant
    to Section of the Clean Water Act
    (33 U.S.C. §1317); (E) flammable explosives;
    or (F) radioactive materials;
    
	 
	 	     
    (iv) Those substances regulated pursuant to
    or identified in the Virginia Pesticide Law; Air Pollution
    Control Board; Virginia Waste Management Act; Environmental
    Health Service; Transportation of Hazardous Radioactive
    Materials; Virginia Hazardous Materials Emergency Response
    Program; State Water Control Law; The Groundwater Act of 1973;
    and Miscellaneous Offenses; and in the regulations promulgated
    pursuant to said laws, all as amended; and
    
	 
	 	     
    (v) Such other substances, materials and
    wastes which are or become regulated as hazardous or toxic under
    applicable local, state or federal law, or the United States
    government, or which are classified as hazardous or toxic under
    federal, state, or local laws or regulations.
    

Section 7.07.     Compliance
with Laws.

     
During the Term of this Lease, Tenant shall
comply promptly; at Tenant’s sole cost and expense, with
all laws, ordinances, rules and regulations of all federal,
state, county and municipal governments (including, but not
limiting the generality of the foregoing the Americans with
Disabilities Act 42 U.S.C. Section 12101
et seq.) now in force or that may be enacted
hereafter, with all directions, rules and regulations of the
fire marshal, health officer, building inspector and other
officers of the governmental agencies having jurisdiction over
the Premises, and with such standards established from time to
time by each insurance underwriter, inspection bureau and
similar agency, which are applicable to Tenant’s use and
occupancy of the Premises. When requested by Landlord and, in
any event, upon the completion of any construction or
alterations to the Premises by Tenant, Tenant shall deliver to
Landlord a permanent non-residential use permit or its
equivalent, and all evidence typically required in the
jurisdiction where the Shopping Center is located to provide
evidence of compliance by Tenant with all applicable building
and fire codes and all other governmental requirements. Unless
otherwise specifically provided for in this Lease as
Landlord’s obligation, Tenant shall make, at Tenant’s
sole cost and expense, all repairs and alterations to the
Premises which are or hereafter may be required in order to
comply with the foregoing.

C-12

 

PART VIII — UTILITIES

 

		
	Section 8.01.	
    Tenant Responsible for Utilities.

     
Unless otherwise specifically provided for in
this Lease as Landlord’s obligation, Tenant shall make
application for and arrange for and pay or cause to be paid all
charges for gas, water, electricity, light, heat, power,
telephone, sewer and all other utility services used, rendered
or supplied upon or in connection with the Premises; and Tenant
shall defend, indemnify and save Landlord harmless against any
liability or charges on account thereof. In case any utility
charges are not paid by Tenant when due, Landlord may pay the
utility charges to the utility company or department furnishing
the utility service, and any amounts so paid by Landlord shall
be paid by Tenant to Landlord immediately upon demand by
Landlord, as Additional Rent.

 

		
	Section 8.02.	
    Utility Charges.

     
If a submeter is installed for any utilities,
Tenant shall pay Landlord monthly for the utility services so
submetered at the same rates which Tenant would pay to the
utility company supplying such utility service if such service
were supplied to Tenant by such utility company by direct meter.
If the furnishing of any service by Landlord should be
determined to be a public utility service and rates therefor
should be fixed or approved by any public authority having
jurisdiction, then such rates for any such service shall
supersede the provisions of this Lease with respect to the
determination of the charges to be paid by Tenant for such
service.

 

		
	Section 8.03.	
    No Overloading.

     
Tenant shall not have the right, without
Landlord’s prior written approval of Tenant’s plans
and specifications therefore, to install any equipment which
shall exceed the capacity of any utility facilities or which
shall require additional utility facilities. If such
installation is approved by Landlord, and if Landlord provides
such additional facilities to accommodate Tenant’s
installation, Tenant agrees to pay Landlord, on demand, the cost
of providing such additional utility facilities or utility
facilities of a greater capacity. Tenant shall in no event use
any of the utility facilities in any way which shall overload or
overburden the utility systems.

PART IX — LIENS

     
Tenant shall do all things necessary to prevent
the filing of any mechanics’ or other lien against the
Shopping Center, the Premises or any part thereof by reason of
work, labor, services or materials supplied or claimed to have
been supplied to Tenant. If any lien shall at any time be filed
against the Shopping Center or the Premises or any part thereof,
Tenant shall cause the lien to be discharged of record
immediately after the date of filing of the lien. If Tenant
shall fail to discharge such lien immediately, such event shall
constitute a default under this Lease.

PART X — ENTRY INTO
PREMISES

 

		
	Section 10.01.	
    Landlord’s Right to Enter.

     
Landlord and the authorised representatives of
Landlord may enter the Premises at all reasonable times and upon
reasonable prior notice for the purpose of serving or posting
notices required or permitted by any law, or for the purpose of
inspecting the Premises. Landlord hereby reserves the right and
easement in or over the Premises or any portion or portions
thereof as shall be reasonably required for the installation,
addition, alteration, relocation, replacement or maintenance of
Common Areas, roofs, floors, doors, windows, mains, conduits,
pipes or other facilities to serve the Shopping Center or any

C-13

 

part thereof. Landlord shall not in any event be
liable for inconvenience, annoyance, disturbance, loss of
business or other damage claimed by Tenant by reason of
Landlord’s work within the Premises. Notwithstanding the
foregoing, Landlord shall act reasonably to minimize any
interference with the operation of Tenant’s business during
such activity.

Section 10.02.     Display.

     
Landlord and the authorized representatives of
Landlord may, at all reasonable times and upon reasonable prior
notice, enter the Premises at any time during business hours for
the purpose of exhibiting the Premises to prospective
purchasers, mortgagees and/or Tenants. During the final six
(6) months of the Lease term, Landlord reserves the right
to post “For Lease” or other similar signage within
the Premises.

PART XI — MAINTENANCE,
ALTERATION AND CONSTRUCTION

Section 11.01.     Landlord’s
Maintenance.

     
(a) Landlord shall keep in good order,
condition and repair the foundations, slab floor, exterior
walls, downspouts, gutters, parking areas and roof of the
Premises. Landlord shall have no maintenance responsibility
whatsoever for the interior of all walls, the interior and
exterior of the store front(s), any windows, any doors, any
plate glass, any Tenant-specific roof penetrations or curbs,
including any damages to any part of the Premises caused by
Tenant, or Tenant’s agent’s, employees,
contractor’s or invitee’s, action, neglect and/or
omission. Landlord shall be liable for any damage sustained by
Tenant as a result of gross negligence by Landlord or
Landlord’s agents, employees, contractors or invitees in
performing its duties pursuant to this Section.

     
(b) Tenant shall immediately notify Landlord
in writing of the need for any repair or maintenance which
Landlord is obligated to perform pursuant to
Section 11.01(a), and if Tenant fails to give Landlord such
immediate written notice, then Tenant shall be solely
responsible for all damages from any delay in making the
required repair or maintenance. Landlord shall trim all trees in
a manner which, in Landlord’s reasonable discretion,
maintains and maximizes visibility of the Premises from nearby
roadways.

Section 11.02.     Tenant’s
Maintenance.

     
Tenant shall keep and maintain in good order,
condition and repair the Premises and every part thereof,
including, but not limited to: all plumbing and sewage
facilities within and serving the Premises. Including free flow
up to the main sewer line; all cooling and heating facilities
serving the Premises; including such facilities located outside
the Premises, if any; the sprinkler system within the Premises
(provided that Tenant shall make no adjustment, alteration or
repair of any part of the sprinkler or sprinkler alarm system in
or serving the Premises without Landlord’s prior written
approval) all utility meters; fixtures; leasehold improvements;
interior walls; store front(s); floors; ceilings; sides;
windows; doors; plate glass; showcases; sky lights; all
electrical facilities and equipment; all other appliances and
equipment of every kind and nature; all vestibules, entrances
and returns located within the Premises; and all other
non-structural repairs, replacements and restorations to the
Premises.

Section 11.03.     Limitation
on Tenant’s Alterations.

     
Tenant shall not make or permit to be made any
alterations, improvements or additions of or to the Premises or
any part thereof, unless and until Tenant shall have caused
plans and specifications therefor to have been prepared, at
Tenant’s expense, by a licensed architect and shall have
obtained 

C-14

 

Landlord’s approval thereof. If such
approval is granted, Tenant shall cause the work described in
such approved plans and specifications to be performed, at its
expense, promptly, and in a first class workmanlike manner by a
licensed general contractor and in compliance with all
applicable governmental and insurance requirements and the
standards set forth in this Lease (including, without
limitation, the provisions of
Exhibit “B”), without interference with or
disruption to the operations of the Shopping Center.

 

		
	Section 11.04.	
    Changes to Shopping Center.

     
Landlord shall have the right, at any time, and
from time to time, to make or permit changes to the Shopping
Center or any part thereof, including, without limitation,
additions to, removal from, arrangements of, alterations of,
modifications of or supplements to the building areas, walkways,
parking areas, access roads, driveways or other Common Areas, to
construct, or permit to be constructed other buildings or
improvements in the Shopping Center and to make alterations
thereof or additions thereto and to build additional stories on
any buildings.

 

		
	Section 11.05.	
    Performance of Work By Landlord.

     
If Landlord shall perform any construction work
at the request of Tenant, or if Tenant is required to pay
Landlord for any construction work, then the cost of such work
together with a fee to Landlord equal to fifteen percent (15%)
of the cost of such work shall be payable by Tenant to Landlord
within fifteen (15) days after Landlord’s demand, as
Additional Rent.

 

		
	Section 11.06.	
    Miscellaneous.

     
Upon completion of construction and prior to the
time when Tenant opens for business in the Premises, both
initially and subsequently after any temporary closure after
casualty damage or permitted remodeling, Tenant shall not be
permitted to, and shall not, open for business until the
following requirements shall be satisfied:

     
(a) Tenant shall have delivered to Landlord,
insurance policies, mechanics’ lien waivers as required by
this Lease;

     
(b) Landlord shall have inspected the
Premises to determine whether all of Tenant’s Work in the
Premises is complete in accordance with the requirements of this
Lease and Landlord shall have approved all such work; and

     
(c) Tenant shall have paid Landlord all Rent
which have then accrued under the Lease.

     
No approval by Landlord under this Lease shall
make Landlord responsible for the condition of the Premises or
constitute a representation by Landlord of compliance with any
applicable requirements or constitute a waiver of any rights and
remedies that Landlord may have under this Lease or at law or in
equity. If Tenant shall open the Premises in violation of the
requirements of this Section, such action by Tenant shall
constitute a material Default under this Lease. When Tenant
opens for business in the Premises, Tenant shall be deemed to
have accepted the Premises and agreed that it is in the
condition, with respect to any of Landlord’s obligations,
which is required under this Lease.

PART XII — DAMAGE AND
DESTRUCTION

 

		
	Section 12.01.	
    General Restoration Obligation.

     
Unless this Lease is terminated as provided in
Part XII, Sections 12.02 or 12.03, if the Premises
shall be damaged or destroyed by any casualty, then Landlord
shall repair and restore those parts of the Premises which are
under this Lease to be kept 

C-15

 

in repair by Landlord; and Tenant shall likewise
repair and restore all other parts of the Premises,
substantially to the condition thereof immediately prior to such
damage or destruction, including, but not limited to, all
leasehold improvements, heating and cooling facilities servicing
the Premises, signs, trade fixtures, equipment, display cases,
furniture, furnishings and other installations in the Premises,
in accordance with Part XI hereof.

 

		
	Section 12.02.	
    Termination for Damage to Premises.

     
If:

     
(a) the Premises shall be damaged or
destroyed and an architect retained by Landlord shall certify
that the extent of such damage or destruction is one-third (1/3)
or more of the replacement cost of the Premises and leasehold
improvements immediately prior to the occurrence of such damage
or destruction, whether insured or uninsured; or

     
(b) the damage or destruction is due to any
casualty other than a casualty covered by the insurance
maintained by Landlord; or

     
(c) the damage or destruction is due to any
casualty which shall have occurred within the last year of the
Term of this Lease.

     
then, Landlord shall have the option to terminate
this Lease by giving Tenant notice in writing at any time within
ninety (90) days after the occurrence of such casualty.

 

		
	Section 12.03.	
    Termination For Damage to Shopping
    Center.

     
Notwithstanding any other provision of this
Lease, in the event that any portion of the Shopping Center is
damaged or destroyed, to such an extent that Landlord, elects to
discontinue operation of all or a portion of the Shopping
Center; or in the event that the Premises are located in the
portion so damaged or destroyed, and Landlord elects, in its
sole discretion, to discontinue operation in the substantial
portion of the Shopping Center which was damaged or destroyed,
then Landlord shall have the option to terminate this Lease by
giving Tenant notice in writing at any time within ninety
(90) days after such damage or destruction.

 

		
	Section 12.04.	
    Time for Restoration.

     
If the Premises or all or portions of the
Shopping Center shall be damaged or destroyed and this Lease is
not terminated, then upon the expiration of the applicable
ninety (90) day period or upon notice by Landlord to Tenant
prior thereto that Landlord has elected not to terminate this
Lease, Landlord and Tenant shall commence their respective
repair and restoration to the Premises and portions of the
Shopping Center owned by Landlord as soon as is reasonably
possible and prosecute the repair and restoration to completion
with due diligence.

 

		
	Section 12.05.	
    Time for Termination.

     
In the event of any termination of this Lease
under this Part XII, this Lease shall terminate fifteen
(15) days after the delivery of Landlord’s notice of
termination.

 

		
	Section 12.06.	
    No Abatement.

     
No Minimum Rent or Additional Rent shall abate as
a result of casualty damage or during the period of any repair
or restoration unless this Lease is terminated. Tenant shall
continue the operation of its business on the Premises during
any period or repair or restoration to the extent reasonably
practicable from the standpoint of prudent business management.
Tenant shall not 

C-16

 

be entitled to any compensation or damages from
Landlord for loss in the use of the whole or any part of the
Premises and/or any inconvenience or annoyance occasioned by any
damage, destruction, repair or restoration. Notwithstanding the
foregoing, if the Premises shall be damaged by fire or other
casualty, provided that such damage or casualty is not caused by
Tenant’s or Tenant’s employees’, agents’ or
contractors’ negligence or wilfull misconduct, to the
extent that loss of rent is covered by Tenant’s insurance
carrier or reimbursable by Landlord’s insurance carrier,
the Minimum Rent shall be apportioned according to the part of
the Premises which is usable by Tenant until such time that
Landlord has repaired any casualty damage to the Premises as
required pursuant to Section 12.01. No penalty shall accrue
for reasonable delay which may arise by reason of adjustment of
insurance on the part of Landlord, obtaining permits, or on
account of labor problems, or any other cause beyond
Landlord’s reasonable control.

PART XIII — EMINENT
DOMAIN

 

		
	Section 13.01	
    Complete Taking.

     
In the event that possession of the entire
Premises shall be taken under the power of eminent domain or
proceedings in lieu thereof, this Lease shall terminate as of
the date possession shall be so taken.

 

		
	Section 13.02.	
    Partial Taking.

     
In the event that possession of a portion of the
Premises shall be taken under the power of eminent domain or
proceedings in lieu thereof, and the portion not so taken would
not have been reasonably adequate for the operation of
Tenant’s business even if restoration had been performed by
Landlord and Tenant, then this Lease shall thereupon terminate
as of the date possession is taken. In the event of any taking
under the power of eminent domain, or proceedings in lieu
thereof, which does not terminate this Lease as provided above,
this Lease shall remain in full force and effect, however,
Minimum Rent shall be reduced to equal an amount calculated by
multiplying the Minimum Rent otherwise payable by fraction, the
numerator of which shall be the number of square feet of Floor
Area remaining in the Premises after the taking and the
denominator of which shall be the number of square feet of Floor
Area in the Premises prior to the taking and Tenant’s
Proportionate Share shall be adjusted. Unless this Lease is
terminated, if the Premises shall be taken under the power of
eminent domain or proceedings in lieu thereof, then Landlord
shall repair and restore those remaining parts of the Premises
which are under this Lease, to be kept in repair by Landlord,
and Tenant shall likewise repair and restore all other parts of
the Premises, substantially to the condition thereof immediately
prior to such taking, in accordance with part XI.

 

		
	Section 13.03.	
    Substantial Taking of Shopping
    Center.

     
Notwithstanding any other provisions of this
Lease, in the event that any portion of the Shopping Center is
taken under the power of eminent domain or proceedings in lieu
thereof to such an extent that Landlord elects to discontinue
operation of the Shopping Center, or in the event that the
Premises are located in the portion of the Shopping Center taken
under the power of eminent domain or proceedings in lieu thereof
and Landlord elects, in its sole discretion, to discontinue
operation in this portion, which was taken under the power of
eminent domain or proceedings in lieu thereof, then Landlord
shall have the option to terminate this Lease by giving Tenant
notice in writing at any time within ninety (90) days after such
taking under the power of eminent domain or proceedings in lieu
thereof.

C-17

 

Section 13.04.     Damages

     
All damages awarded for any such taking under the
power of eminent domain or proceedings in lieu thereof, whether
for the whole or a part of the Premises, shall belong to and be
the property of Landlord, whether such damages shall be awarded
as compensation for diminution in value of the leasehold or for
the fee of the Premises; provided, however, that Landlord shall
not be entitled to any award made to Tenant for loss of or
damage to Tenant’s trade fixtures or removable personal
property.

Section 13.05.     Termination
Date.

     
If this Lease is terminated as provided in this
Part XIII, all Rent shall be paid up to the date that
possession is taken by public authority, and Landlord shall make
an equitable refund of any Rent paid by Tenant in advance and
not yet earned.

PART XIV — SUBORDINATION; ESTOPPEL
CERTIFICATE; QUIET ENJOYMENT

Section 14.01.     Subordination
of Lease.

     
This Lease and the estate of Tenant hereunder
shall be subject and subordinate to any lease, deed of trust,
mortgage lien or charge, or any reciprocal easement agreement or
other operating agreement, encumbrance, restriction or
declaration which now encumbers or which at any time hereafter
may encumber the Premises and/or the Shopping Center (such
document and any replacement, renewal, modification,
consolidation or extension thereof being hereinafter referred to
as an “Encumbrance”). Any Encumbrance shall be prior
and paramount to this Lease and to the rights of Tenant
hereunder and all persons claiming through or under Tenant, or
otherwise, in the Premises and Common Areas. Tenant, on
Tenant’s behalf, and on behalf of all persons claiming
through and under Tenant, covenants and agrees that, from time
to time at the request of the holder of any Encumbrance, Tenant
will execute and deliver any necessary or proper instruments or
certificates reasonably necessary to acknowledge or confirm the
priority of the Encumbrance over this Lease and the
subordination of this Lease thereto or to evidence Tenant’s
consent to any Encumbrance. Tenant agrees that, upon the request
of any person succeeding to the interest of Landlord as a result
of the enforcement of any Encumbrance, whether upon foreclosure
sale or otherwise (the successor in interest being hereinafter
referred to as the “Purchaser”), Tenant shall
automatically become the tenant of the Purchaser, without
changing the terms or other provisions of this Lease, Tenant
specifically waiving any right which may exist under law to
terminate the Lease. Tenant shall, upon request by the
Purchaser, execute and deliver an instrument or instruments
confirming its attornment.

Section 14.02.     Notice
to Holder of Encumbrance.

     
Tenant agrees that, provided the holder of any
Encumbrance shall have notified Tenant in writing of its
address, Tenant will give such holder, by certified mail, a copy
of any notice of default given to Landlord. Tenant further
agrees that it Landlord shall have failed to cure such default
within the time provided for in this Lease, then the holder
shall have an additional thirty (30) days to cure such
default, or if such default cannot be cured within that time,
then such additional time as may be necessary if within such
thirty (30) days the holder has commenced and is diligently
pursuing the remedies necessary to cure such default (including
but not limited to commencement of foreclosure proceedings if
necessary to effect such cure), in which event this Lease shall
not be terminated while such remedies are being so diligently
pursued.

C-18

 

 

		
	Section 14.03.	
    Estoppel Certificate.

     
Upon fifteen (15) days’ prior written
request by Landlord, Tenant shall deliver to Landlord the
following:

     
(a) Such financial information concerning
Tenant and Tenant’s business operations as may be requested
by Landlord, any prospective purchaser, holder, or prospective
holder of any Encumbrance;

     
(b) A statement certifying (i) that
this lease is unmodified and in full force and effect, or if
there has been any modification thereof that this Lease is in
full force and effect as modified and stating the nature of the
modification; (ii) that Landlord is not in default under
this Lease and no event has occurred which, after notice or
expiration of time or both, would constitute a default (or if
any such default or event exists, the specific nature and extent
thereof); (iii) the dates to which the Minimum Rent,
Additional Rent and other charges have been paid in advance, if
any, and (iv) any other information concerning this Lease
or the Premises which Landlord may reasonably request.

     
Any financial information and any statement
delivered pursuant to this Section may be relied upon by
Landlord, any prospective purchaser, holder or prospective
holder of any encumbrance. If Tenant shall fail to deliver the
statement required by the Section within fifteen (15) days after
Landlord has requested such statements, Tenant shall be deemed
to have certified that this Lease is in full force and effect
and that Landlord is not in default under this Lease.

 

		
	Section 14.04.	
    Recordation.

     
Tenant agrees that this Lease shall not be
recorded unless the recordation is requested by Landlord. If
this Lease is recorded at the request of Landlord, then Landlord
will pay the total cost and expense of such recording.

 

		
	Section 14.05.	
    Quiet Enjoyment.

     
Landlord covenants that it has the full right,
power and authority to enter into this Lease for the Term.
Subject to the provisions of Section 14.01 hereof, Tenant,
upon paying the rent due and payable to Landlord hereunder and
upon performing all of Tenant’s covenants, conditions and
agreements contained in this Lease, shall peaceably and quietly
have and enjoy possession of the Premises without hindrance by
Landlord or anyone claiming by, through or under Landlord.

PART XV — ASSIGNMENT AND
TRANSFERS

 

		
	Section 15.01.	
    General Prohibition.

     
(a) Tenant shall not voluntarily,
involuntarily or by operation of law, assign, mortgage or
otherwise encumber, all or any part of Tenant’s interest in
this Lease or in the Premises or sublet the whole or any part of
the Premises or license concessions or lease departments in the
Premises or allow any other person to occupy the Premises (any
and all of which are herein referred to as a
“Transfer”), without, in each and every case, the
prior consent of Landlord which may be held in its sole and
absolute discretion. Any Transfer which is made without prior
written consent of Landlord shall be null and void and of no
force and effect whatsoever. If this Lease or the Premises is
Transferred, Landlord may collect Rent from the transferee and
shall not be deemed to be a waiver of Landlord’s rights to
enforce Tenant’s covenants or the covenants or the
acceptance of the Transferee as tenant, or a release of Tenant
from the performance of any covenants on the part of Tenant to
be performed. Notwithstanding any Transfer, Tenant or any
guarantor of this Lease shall remain fully liable for the
performance of all terms, covenants and provisions of this
Lease. Any violation 

C-19

 

of this Lease by any Transferee shall be deemed
to be a violation of this Lease by Tenant.

     
(b) Notwithstanding the foregoing, Landlord
shall not unreasonably withhold, condition or delay its consent
to an assignment of this Lease or subletting of the entire
Premises to a single person or entity provided that all of the
following conditions are satisfied:

		
	 	     
    (i) The proposed assignee or sublessee has
    management or business experience at least equal to that of
    Tenant;
    
	 
	 	     
    (ii) The Transfer consists of all of
    Tenant’s leasehold interest and/or of the entire Premises,
    and in the case of an assignment, shall also transfer to the
    assignee all Tenant’s rights in, and interest under, the
    Lease;
    
	 
	 	     
    (iii) At the time of such Transfer, this
    Lease is in full force and affect without any breach or default
    hereunder on the part of Tenant;
    
	 
	 	     
    (iv) The assignee or sublessee shall assume,
    by written recordable instrument, in form and content
    satisfactory to Landlord, the due performance of all of
    Tenant’s obligations at the time of the Transfer;
    
	 
	 	     
    (v) Tenant shall give Landlord at least
    sixty (60) days prior written notice of the proposed
    assignment or subletting, a copy of the original assumption
    agreement (both in form and content satisfactory to Landlord)
    fully executed and acknowledged by the assignee and/or
    sublessee, and in the event the assignee and/or sublessee is a
    corporation, a certified copy of the properly executed corporate
    resolution authorising such assumption agreement, shall be
    delivered to Landlord within ten (10) days prior to the
    effective date of such Transfer;
    
	 
	 	     
    (vi) Such Transfer shall be upon and subject
    to all the provisions, terms, covenants and conditions of this
    Lease;
    
	 
	 	     
    (vii) Tenant and its guarantor shall remain
    liable for the due performance of all obligations under the
    Lease, including accrued obligations at the time of the Transfer
    in accordance with its obligations hereunder; and
    
	 
	 	     
    (viii) Tenant shall pay to Landlord a sum
    equal to one hundred percent (100%) of any rent or other
    consideration paid to Tenant by any assignee or sublessee which
    is in excess of the rent then being paid to Landlord by Tenant
    pursuant to the terms of this Lease, and one hundred percent
    (100%) of any other profit or gain realized by Tenant, net of
    Tenant’s actual cost in assigning or subletting the
    Premises, as Additional Rent immediately upon receipt thereof by
    Tenant.
    

     
(c) Notwithstanding anything contained in
this Lease to the contrary and notwithstanding any consent by
Landlord to any Transfer of the Premises, no assignee or
subtenant shall assign this Lease or the sublease, nor further
sublease the Premises without Landlord’s prior consent in
each instance.

     
(d) Tenant’s failure to comply with all
of the provisions and conditions of this Section 15.01
shall, at Landlord’s option, render any purported Transfer
null and void, and of no force and effect and, in addition,
constitute an Event of Default.

     
(e) Notwithstanding anything contained
herein to the contrary, if Tenant desires to Transfer this
Lease, Tenant shall give Landlord at least one hundred twenty
(120) days prior written notice of such intention, and
during such 120-day period (the “Advance Recapture
Period”), Landlord shall have the right to terminate this
Lease and recapture the Premises by giving Tenant Thirty
(30) days prior written notice of such termination, and
this Lease shall, within Thirty (30) days after such
notice, 

C-20

 

terminate, and Tenant and Landlord shall each be
relieved of further liability hereunder, at law or in equity.
Notwithstanding the foregoing, the Advance Recapture Period
shall not apply if the intended Transfer is to one of
Tenant’s affiliates (however, such Transfer shall still be
required to meet the criteria set forth in this
Section 15.01). If during the Advance Recapture Period
Landlord does not elect to terminate this Lease and recapture
the Premises, then Tenant shall have the right to assign this
Lease or sublet the Premises subject to this Section 15.01.

Section
15.02.     Corporate or Partnership
Transactions.

     
If Tenant or the guarantor of this Lease, if any,
is a corporation the stock of which is not traded on any
national securities exchange or nationally in the National
Association of Securities Dealers over the counter market, then
the merger, consolidation or reorganization of such corporation
and/or the sale, issuance, or transfer, cumulatively or in one
transaction, of any voting stock, by Tenant or the guarantor of
this Lease or the stockholders of record of either as of the
date of this Lease, which results in a change in the voting
control of Tenant or the guarantor of this Lease (except any
such transfer by gift, inheritance or testamentary disposition)
shall constitute a Transfer of this Lease for all purposes of
this Lease. If Tenant or the guarantor of this Lease, if any, is
a joint venture, partnership or other association, then for
purposes this Lease, the sale, issuance or transfer,
cumulatively or in one transaction, of either voting control or
of a twenty-five (25%) or greater interest, or the termination
of any joint venture, partnership or other association, shall
constitute a Transfer, except any such transfer by inheritance
or testamentary disposition.

PART XVI — BANKRUPTCY OR
INSOLVENCY

Section
16.01.     Events of
Bankruptcy

     
The following shall be Events of Bankruptcy under
this Lease:

     
(a) Tenant’s becoming insolvent, as
that term is defined in Title 11 of the United States Code
(the “Bankruptcy Code”), or under the insolvency laws
of any state, district, commonwealth or territory of the United
States (the “Insolvency Laws”);

     
(b) The appointment of a receiver or
custodian for any or all of Tenant’s property or assets, or
the institution of a foreclosure action upon any of
Tenant’s real or personal property;

     
(c) The filing of a voluntary petition under
the provisions for the Bankruptcy Code or Insolvency Laws;

     
(d) The filing of an involuntary petition
against Tenant as the subject debtor under the Bankruptcy Code
or Insolvency Laws, which either (i) is not dismissed
within Thirty (30) days of filing, or (ii) results in
the issuance of an order for relief against the debtor, or

     
(e) Tenant’s making or consenting to an
assignment for the benefit of creditors or a common law
composition of creditors.

Section 16.02.     Landlord’s
Remedies.

     
Upon occurrence of an Event of Bankruptcy,
Landlord shall retain all rights and remedies available to
Landlord pursuant to Part XVII of this Lease provided,
however, that while a case in which Tenant is the subject debtor
under the Bankruptcy Code is 

C-21

 

pending, Landlord shall not exercise its rights
and remedies pursuant to Part XVII, so long as:

     
(a) The Bankruptcy Code prohibits the
exercise of such rights and remedies, and

     
(b) Tenant or its Trustee in Bankruptcy
(hereinafter referred to as “Trustee”) is in
compliance with the provisions of Part XVI.
Sections 16.03, 16.04, 16.05, and 16.06 below.

 

		
	Section 16.03.	
    Trustee’s Rights to Assume or
    Assign.

     
In the event Tenant becomes the subject debtor in
a case pending under the Bankruptcy Code, Landlord’s rights
shall be subject to any rights of Trustee (as the term
“Trustee” is used in Bankruptcy Rule 9001(10),
including in its definition a debtor-in-possession) to assume or
assign this Lease pursuant to the Bankruptcy Code. Trustee shall
not have the right to assume or assign this Lease unless Trustee
promptly

     
(a) Cures all Defaults under this Lease,
other than an Event of Bankruptcy,

     
(b) Compensates Landlord for monetary
damages incurred as a result of such Defaults, or the Event of
Bankruptcy, or both, including in all events reasonable
attorney’s fees incurred by the Landlord,

     
(c) Provides adequate assurance of future
performance (as the phrase “adequate assurance of future
performance” is used in Section 365 of the Bankruptcy
Code and defined in Section 16.04 hereof) on the part of
the Tenant as debtor-in-possession or on the part of the
assignee tenant (the “Assignee”), and

     
(d) Complies with all other requirements of
the Bankruptcy Code.

 

		
	Section 16.04.	
    Adequate Assurance of Future
    Performance.

     
Landlord and Tenant hereby agree in advance that
adequate assurance of future performance, as used in
Section 16.03, above, shall include all of the following
minimum criteria, in addition to the general criteria of
Section 365 (b) (3) of the Bankruptcy Code:

     
(a) In the event of assumption by Tenant,
Tenant’s Gross Sales during the Thirty (30) day period
immediately preceding the initiation of the case under the
Bankruptcy Code must be at least ten (10) times the monthly
installment of annual Minimum Rent and Additional Rent due under
the Lease,

     
(b) In the event of assumption by Tenant,
both the average and median of Tenant’s monthly Gross Sales
in the ordinary course of business during the six (6) month
period immediately preceding the initiation of the case under
the Bankruptcy Code (or such shorter period as may have elapsed
in the Term of this Lease) must be at least ten (10) times
the next monthly installment of annual Minimum Rent and
Additional Rent due under this Lease;

     
(c) Trustee or Assignee, as the case may be,
must pay Tenant’s Proportionate Share of Real Estate Taxes,
Common Area Maintenance Costs, Shopping Center Insurance and for
all services provided by Landlord (whether directly or through
agents or contractors and whether or not previously included as
part of the annual Minimum Rent), in advance of the performance
or provision of such services;

     
(d) Tenant’s or Assignee’s
business, as the case may be, shall be conducted in a
first-class manner, and that no liquidating sales, auctions, or
other non-first-class business operations shall be conducted on
the Premises;

C-22

 

     
(e) The Premises shall be used for the
Permitted Use and operated under the Permitted Name as stated in
this Lease will remain unchanged and that no prohibited use
shall be permitted;

     
(f) The assumption or assignment of this
Lease will not violate or affect the rights or other tenants in
the Shopping Center;

     
(g) Trustee or Assignee, as the case may be,
must pay to Landlord at the time the next monthly installment of
Minimum Rent is due under this Lease, in addition to such
installment of Minimum Rent, an amount equal to the monthly
installments of Minimum Rent and Additional Rent due under this
Lease for the next six (6) month under this lease, said amount
to be held by Landlord in escrow until either Trustee or
Assignee defaults in its payment of Rent or other obligations
under this Lease (whereupon Landlord shall have the right to
draw on such escrowed funds) or until the expiration of this
Lease (whereupon the funds shall be returned to Trustee or
Assignee); and

     
(h) Trustee or Assignee, as the case may be,
must pay to Landlord within Ten (10) days of receipt of written
Notice from Landlord at any time Landlord is authorized to and
does draw on the escrow account the amount necessary to restore
such escrow account to the original level required by this
Section.

 

		
	Section 16.05.	
    Reference to Bankruptcy Code and
    Terms.

     
Landlord and Tenant hereby agree that the
Premises is real property in a shopping center (as the term
“shopping center” is used in
Section 365 (b) (3) of the Bankruptcy Code). All
references to the Bankruptcy Code or Bankruptcy Rules are
references to Title 11 of the United States Code, 11 U.S.C.
Section 101, et seq. (1978) and the relevant
portions of Title 28 U.S.C. Section 2075. In the event
of amendment of the Bankruptcy Code in whole or in part, the
provisions of this Lease referring to the Bankruptcy Code shall
be construed to survive and not to conflict with the amended
Bankruptcy Code, the intent of the parties being that the
Landlord retain its rights and remedies provided in this Lease
in addition to any rights and remedies provided by amendment to
the Bankruptcy code, unless otherwise required by law.

 

		
	Section 16.06.	
    Tenant’s Burden.

     
In the event Tenant is unable to:

     
(a) cure its Defaults within the time period
prescribed herein,

     
(b) promptly reimburse the Landlord for its
monetary damages,

     
(c) pay the Rent due under this Lease and
all other payments required of Tenant under this Lease on time
(or within five (5) days of the due date),

     
(d) comply with all other requirements of
the Bankruptcy Code, or

     
(e) meet the criteria and obligations
imposed by Part XVI, Section 4 above,

     
then, Tenant agrees in advance that it has not
met its burden to provide adequate assurance of future
performance, and this Lease may be terminated by Landlord in
accordance with Section 16.02 above.

C-23

 

PART XVII — EVENTS OF DEFAULT AND
REMEDIES

 

		
	Section 17.01.	
    Events of Default.

     
The occurrence of any one or more of the
following events shall constitute a Default or an Event of
Default under this Lease:

     
(a) if Tenant fails to pay any Rent
hereunder as and when such Rent becomes due and such failure
shall continue for more than five (5) days after Landlord
gives Tenant written notice of past due Rent; or

     
(b) if Tenant fails to perform or observe
any other term of this Lease and such failure shall continue for
more than ten (10) days after Landlord gives Tenant notice
of such failure, or, if such failure cannot be corrected within
ten (10) day period, if Tenant does not commence to correct
such default within said ten (10) day period and thereafter
diligently prosecute the correction of same to completion within
a reasonable time and in any event prior to the time a failure
to complete such correction could cause Landlord to be subject
to prosecution for violation of any law, rule, ordinance or
regulation or causes, or could cause a default under any deed of
trust, mortgage, underlying lease, tenant lease, encumbrance, or
other agreement applicable to the Shopping Center.

 

		
	Section 17.02.	
    Remedies.

     
Upon the occurrence of any Event of Default,
Landlord shall have the right, at Landlord’s option,
(i) to terminate this Lease and/or (ii) to use, apply
or retain the whole or any part of the Security Deposit to the
payment of any sum in default and to the payment of any expense
suffered in reletting the Premises. If Landlord uses any part of
the Security Deposit then Tenant shall, upon notice from
Landlord, promptly restore the Security Deposit to the balance
it existed prior to the application. With or without terminating
this Lease, Landlord may re-enter and take possession of the
Premises at any time upon notice to Tenant. If necessary,
Landlord may proceed to recover possession of the Premises under
and by virtue of the laws of the Commonwealth of Virginia or by
such other proceedings, including re-entry and possession, as
may be applicable. If Landlord elects to terminate this Lease,
everything contained in this Lease on the part of Landlord to be
done and performed shall cease without prejudice; subject
however, to the right of Landlord to recover from Tenant all
Rent and other sums accrued up to the time of termination or
recovery of possession by Landlord, whichever is later. Whether
or not this Lease is terminated by reason of Tenant’s
Default, Landlord may, but shall not be obligated to, relet the
Premises for such rent and upon such terms as are not
unreasonable under the circumstances and, if the entire Rent
provided in this Lease plus the costs, expenses, and damages
hereafter described shall not be realized by Landlord, Tenant
shall be liable for all damages sustained by Landlord, including
deficiencies in Rent, attorney’s fees and expenses
reasonably incurred, brokerage fees, and the expense of placing
the Premises in first-class rentable condition. Landlord shall
in no way be responsible or liable for any failure to collect
any rent due and/or accrued from such reletting, to the end and
intent that Landlord may elect to hold Tenant liable for any
deficiencies in Rent, and any and all other items of cost and
expense which Tenant shall have been obligated to pay throughout
the remainder of the Term. Any damages or loss of Rent sustained
by Landlord may be recovered by Landlord, at Landlord’s
option, at the time of the reletting, or in separate actions,
from time to time, as said damage shall have been made more
easily ascertainable by successive relettings, or, at
Landlord’s option, may be deferred until the expiration of
the Term, in which event Tenant hereby agrees that the cause of
action shall not be deemed to have accrued until the date of
expiration of the Term.

C-24

 

 

		
	Section 17.03.	
    Landlord Default.

     
Landlord shall in no event be in default in the
performance of any of its obligations in this Lease contained
unless and until Landlord shall have failed to perform such
obligation within thirty (30) days, or such additional time as
is reasonably required to correct any such default, after notice
by Tenant to Landlord properly specifying in what manner
Landlord has failed to perform any such obligation, subject to
Section 14.02. Notwithstanding the foregoing, Landlord
shall perform such obligation as soon as reasonably practical
after receipt of notice by Tenant pursuant to this Section.

 

		
	Section 17.04.	
    Self Help.

     
If Tenant shall default in the performance of any
Lease covenant Landlord may, at Landlord’s option, after
any notice and the expiration of any period with respect to this
Lease perform the covenant for the account of Tent, and all
costs and expenses incurred by Landlord, plus interest thereon
at the Default Rate from the date paid by Landlord to the date
of payment thereof by Tenant, shall be immediately paid by
Tenant to Landlord. The taking of such action by Landlord shall
not be considered as a cure of such Default by Tenant or to
prevent Landlord from pursuing any remedy it is otherwise
entitled to in connection with such Default.

PART XVIII — OWNERSHIP OF PERSONAL
PROPERTY AND SURRENDER OF PREMISES

 

		
	Section 18.01.	
    Surrender.

     
Upon the termination of this Lease, Tenant shall
surrender to Landlord the Premises including, without
limitation, all apparatus and fixtures, except trade fixtures
and furniture and signs installed by Tenant, then upon the
Premises, free of all debris and in good condition and repair,
reasonable wear and tear excepted, and all alterations,
improvements, additions, machinery and equipment which may be
made or installed from time to time by either party hereto, in,
upon or about the Premises, except trade fixtures and furniture
and signs installed by Tenant, shall be the property of
Landlord, and upon any such termination, shall be surrendered to
Landlord by Tenant without any injury, damage or disturbance
thereto or payment therefor. Landlord’s property shall
include, but not be limited to, all components of the heating,
air conditioning, (including the portion thereof outside the
Premises, if any), plumbing and electrical systems, lighting
fixtures and fluorescent tubes and bulbs, all escalators,
elevators, dumbwaiters, conveyors and all partitions.

 

		
	Section 10.02.	
    Ownership of Personal Property.

     
Trade fixtures, furniture, signs and other
personal property installed or placed in the Premises at the
cost of Tenant or any subtenant, licensee or concessionaire of
Tenant shall be the property of Tenant or such subtenants,
licensee concessionaire unless otherwise specified in this
Lease, and Tenant shall remove such personal property prior to
the termination of this Lease, Tenant hereby grants to Landlord
a security interest in all of Tenant’s personal property
located on the Premises to secure Tenant’s performance of
its obligations under this Lease. Tenant shall completely repair
at its own cost and expense any and all damage to the Premises
resulting from or caused by the installation or removal of such
personal property by restoring the Premises to the condition
which existed prior to the installation of the personal property
so removed. If Tenant fails to remove any of such personal
property, Landlord, at any time after termination of the Lease
and at Landlord’s option, may remove all or any part of
such property and title thereto shall thereupon vest, in
Landlord, or Landlord may remove from the Premises and dispose
of in any manner all or any such property, in which latter event
Tenant shall pay to Landlord upon demand 

C-25

 

the actual expense of such removal and
disposition, and the repair of any and all damage to the
Premises resulting from or caused by the installation or removal.

PART XIX — HOLDOVER BY
TENANT

     
In the event that Tenant shall not immediately
surrender the Premises on the expiration or earlier termination
of the Term, Tenant, at the option of Landlord, shall become a
month-to-month Tenant at one hundred fifty percent (150%) of the
Rent in effect during the last month of the Term and subject to
all of the terms, conditions, covenants and agreements of this
Lease. Tenant shall give to Landlord at least thirty
(30) days’ written notice of any intention to quit the
Premises, and Tenant shall be entitled to thirty
(30) days’ written notice to quit the Premises, unless
Tenant is in Default hereunder, in which event Tenant shall not
be entitled to any notice to quit, the usual thirty (30) days
written notice to quit being hereby expressly waived.
Notwithstanding the foregoing, in the event that Tenant shall
hold over after the expiration of the Term, then at any time
prior to Landlord’s acceptance of Rent from Tenant as a
monthly Tenant hereunder, Landlord, at its option, may forthwith
re-enter and take possession of the Premises without process, in
which case Tenant shall be liable to Landlord for all costs,
injuries and damages suffered by Landlord as a result of the
wrongful holdover. If Tenant fails to surrender the Premises in
a timely manner upon the termination of this Lease, in addition
to any other liabilities to Landlord accruing therefrom, Tenant
shall indemnify and hold Landlord harmless from loss or
liability resulting from such failure, including limiting the
generality of the foregoing, any claims made by any proposed new
tenant founded on such failure.

PART XX — EXCUSE FOR
NON-PERFORMANCE

     
Each party hereto shall be excused from
performing any obligation or undertaking provided in this Lease,
except the obligations of Tenant to pay Rent due under the
applicable provisions of this Lease, in the event and/or so long
as, the performance of any such obligation is prevented or
delayed, retarded or hindered by act of God, fire, earthquake,
flood, explosion, action of the elements, war, invasion,
insurrection, mob violence, sabotage, inability to procure or
general shortage of labor, equipment, facilities, materials or
supplies in the open market, failure of transportation, strike,
lockout, action of labor unions, condemnation, requisition, law,
order of government or civil or military or naval authorities or
any other cause whether similar or dissimilar to the foregoing
not within the reasonable control of such party. Notwithstanding
the foregoing, the lack of funds required to perform an act or
to pay for the material, workmen or other items required for
such action shall never be an excuse for non-payment.

PART XXI — RULES AND
REGULATIONS

     
Tenant and Tenant’s agents, employees,
licensees, concessionaires, subtenants and invitees shall
observe faithfully and comply with any reasonable rules and
regulations governing the Shopping Center as may from time to
time be established and modified by Landlord and/or the owners
of the Shopping Center. Such rules and regulations may apply,
but need not be limited to, safety regulations, matters relating
to security, schedule for lighting of display windows and signs
and the use of Common Areas. Such rules and regulations shall be
binding upon Tenant upon delivery of a copy thereof to Tenant.

PART XXII — MISCELLANEOUS
PROVISIONS

 

		
	Section 22.01.	
    Definition of Landlord and Tenant.

     
The term “Landlord” shall mean only the
person or entity who or which at the time in question holds the
landlord’s interest in 

C-26

 

this Lease, it being intended that the covenants
and obligations contained in this Lease on the part of Landlord
shall be binding on Landlord, its successors and assigns only
during and in respect of their respective successive periods of
owning or holding Landlord’s interest in this Lease. In no
event shall Landlord, or the fee owner or any of their partners,
shareholders, owners, agents or employees have any personal
liability for any obligations under this Lease beyond their
interest in the Shopping Center. Tenant shall, subject to the
rights of any mortgagee, look solely to the interest of
Landlord, its successors and assigns, in the Shopping Center for
the satisfaction of each and every remedy of Tenant in the event
of default by Landlord hereunder. Such exculpation of
Landlord’s personal liability is absolute and without any
exception whatsoever. The term “Tenant” shall mean the
tenant named in this Lease as well as its successors and
assigns, each of which shall have the same obligations and
liabilities and have only such rights, privileges and powers as
it would have possessed had it originally signed this Lease as
Tenant. However, no rights, privileges or powers shall benefit
any Transferee unless such Transferee is permitted pursuant to
the terms of this Lease. Any notice or demand given by Landlord
under this Lease may be given to the Tenant originally named in
this Lease or if there is a permitted Transferee then to the
permitted Transferee, and any such notice or demand so given
shall bind all persons or entities who may have any interest in
Tenant.

 

		
	Section 22.02.	
    Adding and Withdrawing Property.

     
From time to time Landlord may or may not consent
to add property to the Shopping Center or withdraw property from
the Shopping Center. Any property so added shall thereafter be
subject to this Lease and shall be included in the term Shopping
Center as used in this Lease and any property so withdrawn by
Landlord shall thereafter not be subject to the terms of this
Lease and shall be excluded from the term Shopping Center as
used in this Lease.

 

		
	Section 22.03.	
    Captions.

     
The captions of the Articles and Parts of this
Lease are for convenience only and shall not be considered or
referred to in resolving questions of interpretation or
construction.

 

		
	Section 22.04.	
    Joint and Several Obligations.

     
The terms “Landlord” and
“Tenant” wherever used herein shall be applicable to
one or more persons as the case may be, and the singular shall
include the plural, and the neuter shall include the masculine
and feminine, and if there be more than one, the obligations
hereof shall be joint and several.

 

		
	Section 22.05.	
    Persons.

     
The word “person” and the word
“persons”, wherever used in this Lease, shall both
include individuals, partnerships, firms, obligations and
corporations or any other form of business entity.

 

		
	Section 22.06.	
    Remedies Not Exclusive.

     
The various rights, options, elections, powers,
and remedies contained in this Lease shall be construed as
cumulative and no one of them shall be exclusive of any of the
others, or of any other legal and equitable remedy which either
party might otherwise have in the event of breach or default in
the terms hereof, and the exercise of one right or remedy by
such party shall not impair its rights to any other right or
remedy until all obligations imposed upon the other party have
been fully performed.

C-27

 

 

		
	Section 22.07.	
    Time of the Essence.

     
Time is of the essence with respect to the
performance of each of the conditions, covenants and agreements
under this Lease, except as otherwise expressly stated in this
Lease.

 

		
	Section 22.08.	
    Successors and Assigns.

     
Each and all of the provisions of this Lease
shall be binding upon and inure to the benefits of the parties
hereto and, except as otherwise specifically provided elsewhere
in this Lease, their respective heirs, executors,
administrators, successors and assigns, subject at all times,
nevertheless, to all agreements and restrictions contained
elsewhere in this Lease with respect to the assignments,
transfers, encumbering or subletting of all or part of
Tenant’s interest in this Lease.

 

		
	Section 22.09.	
    Interpretation.

     
Printed parts of this Lease shall be as binding
upon the parties hereto as other parts hereof. Parts of this
Lease which are written or typewritten shall have no greater
force or effect than and, shall not control, parts which are
printed, but all parts shall be given equal effect. Tenant
declares that Tenant has read and understands all parts of this
Lease, including all printed parts hereof. This Lease has been
jointly prepared by Landlord and Tenant, and the language in all
parts of this Lease shall be, in all cases, construed according
to its fair meaning and not strictly for or against Landlord or
Tenant.

 

		
	Section 22.10.	
    Concessionaires.

     
For the purpose of this Lease, any concessionaire
of Tenant shall be deemed to be a subtenant of Tenant and all of
the provisions of this Lease relating to subletting, subleases
and subtenants shall apply to the granting of any concession and
shall apply to concessionaires with the same force and effect as
though specifically so provided herein.

 

		
	Section 22.11.	
    No Partnership.

     
Nothing contained in this Lease shall be deemed
or construed by the parties hereto or by any third person to
create the relationship of principal and agent or of partnership
or of joint venture or of any association between Landlord and
Tenant, and neither the method of computation of Rent nor any
other provision contained in this Lease nor any acts of the
parties hereto shall be deemed to create any relationship
between Landlord and Tenant other than the relationship of
landlord and tenant.

 

		
	Section 22.12.	
    No Waiver.

     
No waiver of any default hereunder shall be
implied from any omission by either party to take any action on
account of such default if such default persists or is repeated,
and no express waiver shall affect any default other than the
default specified in the express waiver, and then only for the
time and to the extent therein stated. The acceptance by
Landlord of Rent or other payments with knowledge of the breach
of any of the covenants of this Lease by Tenant shall not be
deemed a waiver of any such breach. One or more waivers of any
breach of any covenant, term or condition of this Lease shall
not be construed as a waiver of any subsequent breach of the
same covenant term or condition. The consent or approval by
Landlord to or of any act by Tenant requiring Landlord’s
consent or approval shall not be deemed to waive or render
unnecessary Landlord’s consent or approval to or of any
subsequent similar acts by Tenant. To be effective, any express
waiver must be in writing.

C-28

 

 

		
	Section 22.13.	
    Lease Contains All Agreements.

     
This Lease contain all conditions, covenants and
agreements between Landlord and Tenant relating in any manner to
the Shopping Center and to the rental, use and occupancy of the
Premises and the other matters set forth in this Lease. No prior
or contemporaneous agreement or understanding pertaining to the
Shopping Center or the Premises shall be valid or of any force
or effect, and the conditions, covenants and agreements of this
Lease cannot be altered, changed, modified, or added to, except
in writing signed by Landlord and Tenant. Landlord and Tenant
intend that this Lease supersedes all such prior or
contemporaneous agreements and that this Lease constitutes the
final, exclusive and complete embodiment of their agreement. No
representation, inducement, understanding or anything of any
nature whatsoever, made, stated or represented on
Landlord’s behalf, either orally or in writing (except this
Lease), has induced Tenant to enter into this Lease.

 

		
	Section 22.14.	
    Brokers.

     
Landlord recognizes the Broker as the Broker
under this Lease and shall pay the Broker a commission pursuant
to a separate agreement between the Broker and Landlord.
Landlord and Tenant each represent and warrant to the other
that, except as provided above, neither of them has employed or
dealt with any broker, agent or finder in carrying on the
negotiations relating to this Lease. In event of a breach by a
party of their foregoing representation and warranty (the
“Defaulting Party”), the Defaulting Party shall
indemnify and hold the other party harmless from and against any
claim or claims, damages or expenses (including any claims for
brokerage or other commissions asserted by any broker, agent, or
finder fees) which may arise as a result of such breach.

 

		
	Section 22.15.	
    Partial Invalidity.

     
Any provision or provisions of this Lease which
shall prove to be invalid, void or illegal shall in no way
affect, impair or invalidate any other provision hereof, and the
remaining provisions hereof shall nevertheless remain in full
force and effect.

 

		
	Section 22.16.	
    Effective Date of Terms.

     
Except with respect to those conditions,
covenants and agreements of this Lease which by their nature
could only be applicable after the commencement of, during, or
throughout, the Term of this Lease, all of the other conditions,
covenants and agreements of this Lease shall be deemed to be
effective as of the date of this Lease. Any obligation arising
during the Term of this Lease under any provision hereof, which
by its nature would require Landlord and/or Tenant to take
certain action after the expiration of the Term or other
termination of this Lease to fully comply with the obligation
arising during the Term, shall be deemed to survive the
expiration of the Term or other termination of this Lease to the
extent of requiring any such action to be performed after the
expiration of the Term which is necessary to fully perform the
obligation that arose during the Term of this Lease.

 

		
	Section 22.17.	
    Other Agreements.

     
Any default by Tenant under any instrument,
undertaking or agreement executed by Tenant in favor of or with
Landlord relating to this Lease or in the tenancy created hereby
shall constitute a breach of this Lease and entitle Landlord to
pursue each of all its rights and remedies hereunder and at law.

C-29

 

 

		
	Section 22.18.	
    Waiver of Trial by Jury.

     
To the extent permitted by law, Landlord and
Tenant mutually waive trial by jury with respect to any action
brought by either party under or in connection with this Lease
and/or the Premises.

 

		
	Section 22.19.	
    Authority.

     
If Tenant signs as a corporation, each of the
persons executing this Lease on behalf of Tenant represents and
warrants that Tenant is a duly organized and existing
corporation, that Tenant has been and is qualified to do
business in the Commonwealth of Virginia, that the corporation
has full right and authority to enter into this Lease, and that
all persons signing on behalf of the corporation were authorized
to do so by appropriate corporate actions. If Tenant signs as a
partnership, trust, or other legal entity, each of the persons
executing this Lease on behalf of Tenant represents and warrants
that Tenant has complied with all applicable laws, rules, and
governmental regulations relative to its right to do business in
the Commonwealth of Virginia, that such entity has the full
right and authority to enter into this Lease, and that all
persons signing on behalf of the Tenant were authorized to do so
by any and all necessary or appropriate partnership, trust, or
other actions.

 

		
	Section 22.20.	
    Attorneys’ Fees and Legal
    Expenses.

     
In any action or proceeding brought by either
party against the other under this Lease, the prevailing party
shall be entitled to recover from the other party reasonable
attorneys’ fees, and other reasonable legal expenses and
court costs incurred by such party in such action or proceeding
as the court may find to be reasonable.

 

		
	Section 22.21.	
    Exhibits.

     
Each reference in this Lease or in any Exhibit to
this Lease shall mean the Exhibits attached to this Lease, all
of which are incorporated in this Lease by reference.

 

		
	Section 22.22.	
    Governing Laws.

     
This Lease shall be governed and construed in
accordance with the laws of the Commonwealth of Virginia,
without regard to its principles of conflicts of laws.

 

		
	Section 22.23.	
    Intentionally Omitted.

 

		
	Section 22.24.	
    Termination Option.

     
Tenant shall have the one time right to terminate
this Lease (the “Termination Right”), if Tenant’s
average level of deposits from its operations at the Premises
during Tenant’s third full year of fiscal reporting at the
Premises falls below Twenty Million and No/100 Dollars
($20,000,000.00) (the “Test Year”). If Tenant fails to
exercise the Termination Right within sixty (60) days after
the Test Year has expired, then any attempted exercise of the
Termination Right shall be null, void and of no force and
effect. Tenant shall, simultaneously with the delivery of the
Termination Notice, provide Landlord with its fiscal report for
the Test Year evidencing that Tenant’s deposits were less
than Twenty Million and No/100 Dollars ($20,000,000.00) for
the Test Year. The Termination Right shall not be available to
Tenant during any subsequent Lease Years or during any exercised
Option Terms and in the event Tenant exercises an Option Term,
this Section 20.24 shall be rendered null and void. Tenant
may exercise this Termination Right, if at all, by written
notice to Landlord given within thirty (30) days following
the expiration of the Test Year in which Tenant’s deposits
were less than Twenty Million and No/100 Dollars
($20,000,000.00) [the “Termination Notice”]. The
Termination Date will be the date which is six (6) months
after the date of Landlord’s receipt of the Termination 

C-30

 

Notice (the “Termination Date”). If
Tenant terminates the Lease as provided above, Tenant shall
vacate the Premises on or before the Termination Date in the
condition otherwise required under Section 18.01 hereof.

     
From the date of the Termination Notice through
the Termination Date, the Lease shall remain in full force and
effect, and Tenant shall honor all of its obligations hereunder.

     
If Tenant exercises its Termination Right as
provided above, simultaneously with such exercise, and after
receipt of written notice from Landlord stating the amount of
the “Commission Reimbursement,” (as hereinafter
defined), Tenant shall reimburse Landlord for the unamortized
portion of the brokerage fee paid by Landlord in connection with
this Lease (based upon a ten (10) year amortization
schedule) [the “Commission Reimbursement”], together
with the sum of Two Thousand and No/100 Dollars ($2,000.00) for
Landlord’s legal and administrative costs (the
“Additional Reimbursement”) pursuant to this
Section 20.24. Landlord agrees to provide Tenant with
written notice of the amount of the Commission Reimbursement and
the Additional Reimbursement simultaneously with Tenant giving
Tenant’s Termination Notice as provided above.

 

		
	Section 22.25	
    Tenant’s Option to Construct Additional
    Space.

     
(a) Subject to Landlord’s consent,
which shall not be unreasonably withheld, conditioned, or
delayed during the initial Term of the Lease, Tenant shall have
the right to expand the Premises upon prior written notice to
Landlord (“Tenant’s Notice”), subject to the
criteria set forth in this Section. Tenant’s right to
expand shall mean that Tenant may construct an addition to the
Premises (the “Expansion Space”), which shall be
constructed, at Tenant’s sole cost and expense, to conform
to the architectural design of the current structure. Tenant
must exercise its right to add the Expansion Space to the
Premises, if at all, by written notice to Landlord given at
least eighteen (18) months prior to the expiration of the
Primary Term. If Tenant does not exercise its right in a timely
manner, Tenant will have irretrievably lost such right to the
Expansion Space.

     
(b) Tenant’s Notice to Landlord shall
be accompanied by the current quarterly financial statement
(which may be unaudited but must be certified by the president
of chief financial officer) and last annual financial statement
(which must be audited) of Tenant. The financial statements (the
“Financial Statements”) required by this paragraph
include income statements, balance sheets, statements of cash
flow, and footnotes.

     
(c) Tenant will not have any rights under
this Section if Tenant does not give Landlord Tenant’s
Notice strictly according to this Section, or if at the time
either that Tenant gives Landlord Tenant’s Notice:

		
	 	     
    (i) An event of default (as defined
    elsewhere in the Lease) exists; or
    
	 
	 	     
    (ii) Tenant occupies less than 100% of the
    rentable square feet of the Premises.
    

     
(d) Tenant shall be required to submit its
plans and specifications to Landlord within thirty
(30) days after Tenant delivers Tenant’s Notice to
Landlord. Landlord shall have the right to approve Tenant’s
Plans pursuant to the same process as set forth in the attached
Exhibit “B,” and Tenant shall be responsible for
obtaining all necessary governmental approvals, licenses and
permits pursuant to the same terms set forth in
Exhibit “B.” Tenant shall have one hundred eighty
(180) days after the date it receives all permit approvals
to complete its construction of the Expansion Space.

C-31

 

     
(e) The lease of the Expansion Space shall
be on the same terms and conditions as are set forth in this
Lease, except that Minimum Rent for the Expansion Space shall be
at the current market rent as determined in Landlord’s sole
discretion.

     
(f) The right to exercise the
above-referenced option shall be personal to Tenant and shall
not apply to any assignees or sublessees.

C-32

 

EXHIBIT “D”

INTENTIONALLY OMITTED

D-1

 

EXHIBIT “E”

FAIR LAKES CENTER SIGN
CRITERIA

 

		
	1.	
    TENANT CANOPY SIGN

 

		
	A.	
    General

			
	 	(1)	
    The Fair Lakes Center sign criteria (the
    “Sign Criteria”) has been established for the purpose
    of assuring an outstanding Shopping Center for the mutual
    benefit of all the stores. Landlord will strictly enforce the
    Sign Criteria. Nonconforming or unapproved signs installed will
    be brought into conformance at Tenant’s expense or be
    promptly removed by the Landlord.
    
	 
	 	(2)	
    Tenant’s canopy sign shall be Tenant’s
    sole responsibility and expense, including design, fabrication,
    permit, installation, maintenance, repair, removal and any
    damage to the canopy and/or shopping center building during
    installation and/or removal.
    
	 
	 	(3)	
    At the expiration of Tenant’s occupancy of
    the Premises, or termination of the Lease, Tenant shall be
    responsible for removing the Tenant’s canopy sign and
    restoring the surfaces damaged by the sign removal to the
    satisfaction of the Landlord. In the event the Tenant does not
    remove its canopy sign, then Landlord may cause the removal of
    said sign at the sole cost and expense of Tenant. In such event,
    the sign shall be deemed abandoned and become the property of
    the Landlord.
    

 

		
	B.	
    Review and Approval

			
	 	(1)	
    After Lease execution, Tenant will submit to
    Landlord drawings and specifications for Tenant’s canopy
    sign. Within thirty (30) days after Landlord approval,
    Tenant will submit application for all required governmental
    approvals. Tenant’s canopy sign shall be installed prior to
    Tenant opening for business.
    
	 
	 	(2)	
    Tenant’s sign submission to Landlord shall
    include a legible scale elevation drawing of the sign on
    Tenant’s storefront showing all dimensions, type-style,
    color, size, orientation, precise proposed placement, materials,
    electrical data, and other information which the Landlord may
    request.
    

 

		
	C.	
    Size

			
	 	(1)	
    Maximum area of Tenant sign shall be controlled
    by the Fairfax County Sign Ordinance. In general, the ordinance
    allows 1.5 square feet of sign area for each linear
    foot of Tenant’s storefront. No individual Tenant sign can
    exceed two hundred (200) square feet. The size of
    Tenant’s sign shall be further controlled by the following
    Fair Lakes Center Sign Criteria. This Sign Criteria is divided
    into two (2) store types. In-line Tenants with
    “standard building canopy” and those Tenants with
    “architectural feature fronts” as defined by Landlord.
    
	 
	 	(2)	
    Standard Building
    Canopy. The maximum height of any
    individual letter either capital, lower case, ascending or
    descending, shall be thirty (30)
    

E-1

 

		
	 	
     inches. The average height of all sign letters
    shall not exceed twenty-four (24) inches. In no event shall
    the length of the sign exceed eighty percent (80%) of the width
    of the Tenant’s storefront.
    

			
	 	(3)	
    Architecture Feature
    Front. The maximum letter height shall
    not exceed four (4) feet. In no event shall the length of
    the sign exceed eighty percent (80%) of the width of the
    Tenant’s storefront.
    

 

		
	D.	
    Specification

			
	 	(1)	
    Internally illuminated individual channel letters
    of 0.050 min. aluminum shop painted. Channel letters and
    one (1) inch plastic trim cap shall be painted to match
    color Sherwin Williams, Estate Tan — SW 2039
    gloss.
    
	 
	 	(2)	
    Standard Building
    Canopy. Channel letters shall be
    mounted on, and completely supported by, a self-contained
    transformer vault/raceway. The vault/ raceway shall be fastened
    to the building only through the back of the vault/ raceway.
    Vault/ raceway shall be six (6) inches in deep by eight
    (8) inches high. No top access to raceway shall be
    permitted. Vault/ raceway painted to match canopy color; Sherwin
    Williams, Estate Tan — SW 2039 gloss.
    
	 
	 	(3)	
    Architectural Feature
    Front. Channel letters shall be
    mounted directly to the canopy face. Channel letters shall be
    spaced three-eighths inch ( 3/8”) off the canopy face
    with PVC or aluminum washers to prevent canopy streaking from
    grit build-up on channel letters. Sign transformers and wiring
    shall be within the canopy or above Tenant storefront. Access
    into the canopy shall be authorized only by the Landlord and is
    not part of the Tenant’s Premises.
    
	 
	 	(4)	
    Sign face shall be translucent three-sixteenths
    inch ( 3/16”) plexiglass. Color ample shall be
    submitted by Tenant and approved by Landlord prior to
    fabrication.
    
	 
	 	(5)	
    UL label and governmental permit label shall be
    located at bottom right return of last letter, or as
    governmental authority shall require.
    
	 
	 	(6)	
    Neon transformer shall be 60 milli-amp.
    Illumination shall be 15 mm, 6500K white neon tubing.
    

 

		
	E.	
    Installation and Removal

			
	 	(1)	
    Power supply shall be 120V. Sign circuit provided
    by Landlord from Tenant electric panel to junction box
    terminated above ceiling at Tenant’s storefront.
    
	 
	 	(2)	
    All bolts, fastenings and clips shall be
    concealed and shall be of a rustproof material, i.e., iron,
    stainless steel, aluminum, brass or bronze. No black iron
    materials shall be permitted.
    
	 
	 	(3)	
    Tenant shall be solely responsible to Landlord
    for the acts of Tenant’s sign contractor. Tenant shall be
    responsible for Landlord’s expense to cause Tenant’s
    sign contractor damage to be promptly repaired plus an
    administrative charge equal to twenty-five percent (25%) of
    repair cost.
    

E-2

 

			
	 	(4)	
    All penetrations of the building structure
    required for sign installation shall be neatly sealed in a
    watertight condition.
    

 

		
	F.	
    Maintenance and Repair

			
	 	(1)	
    The maintenance and repair of the canopy signs
    are strictly the Tenant’s responsibility and expense,
    including annual washing, removal of birds’ nests, damaged
    or broken letters, and any damage to building caused by
    Tenant’s canopy sign or its installation and/or removal.
    Canopy signs shall be removed, repainted, and recharged every
    five (5) years at Tenant’s expense.
    
	 
	 	(2)	
    Tenant shall be responsible for the day-to-day
    maintenance of its sign, including but not limited to
    replacement of the neon gas and repair of the sign face, and for
    the utility charges necessary to illuminate the sign. Damage to
    the sign by fire, or other casualty, insurable under full
    standard risk insurance, shall be Landlord’s responsibility
    to repair or replace unless same is caused by Tenant, its
    agents, employees or contractors, in which event Tenant shall be
    responsible and reimburse Landlord for the repair or
    replacement. Damage to the sign face by any cause shall be the
    responsibility of Tenant unless caused by Landlord, its agents,
    employees or contractors, in which event Landlord shall repair
    or replace the sign face.
    

 

		
	G.	
    Operation

			
	 	(1)	
    As part of the rules and regulations of the
    Shopping Center, Landlord shall specify minimum hours the Tenant
    canopy sign shall be lighted.
    

 

		
	2.	
    TENANT UNDER CANOPY SIGN

 

		
	A.	
    General

			
	 	(1)	
    Under canopy signage program is important to
    identify stores for customers under the canopy and to promote
    cross shopping.
    

 

		
	B.	
    Design

			
	 	(1)	
    Landlord shall provide to Tenant complete design,
    fabrication and installation instruction.
    

 

		
	C.	
    Tenant Responsibility

			
	 	(1)	
    Prior to opening for business Tenant shall
    install the “Under Canopy” sign in accordance with
    Landlord’s criteria.
    

 

		
	3.	
    MISCELLANEOUS TENANT SIGNAGE

 

		
	A.	
    Storefront Signage

			
	 	(1)	
    Tenant will be permitted to place on the
    storefront entry door not more than one hundred and
    forty-four (144) square inches of gold leaf or decal
    application lettering not to exceed two inches (2”) in
    height, indicating hours of business and emergency telephone
    numbers.
    
	 
	 	(2)	
    Tenant shall install on its storefront entrance
    the street address in a standard location established by
    Landlord. Color of letters will be white, six
    inches (6”) high, and Helvetica bold type.
    

E-3

 

			
	 	(3)	
    Paper signs, decals, stickers, temporary signs
    shall not be applied to the exterior of Tenant’s storefront.
    

B.     Receiving
Doors

			
	 	(1)	
    Tenant shall install on receiving doors at rear
    of Premises in six-inch (6”) high block letters, the Tenant
    name and address. Color of letters will be black and in
    Helvetica bold type.
    

E-4

 

EXHIBIT “F”

AMENDED AND RESTATED ACCESS EASEMENT

F-1

 

AMENDED AND RESTATED

ACCESS EASEMENT

THIS AMENDED AND RESTATED ACCESS EASEMENT (the
“Agreement”) is made and entered into this
3rd day of July, 1996 by and among Fair Lakes
Associates L.C., a Virginia limited liability company
(“FL”). The Shops at Fair Lakes L.P., a
Virginia limited partnership (“Shops”), Victor
Limited Partnership, a Virginia limited partnership
(“Victor”) York Limited Partnership, a Virginia
limited partnership (“York”), Perch Associates
Limited Partnership, a Virginia limited partnership
(“Perch”), and Builders Limited Partnership, a
Virginia limited partnership (“Builders”) with
reference to the following:

RECITALS:

     
A.     FL is the owner
of certain parcels of land more particularly described on
Exhibit A (the “FL Land”)
located in Fairfax County, Virginia.

     
B.     York and Victor
are the owners of that certain parcel of land described on
Exhibit B (the “Section 7-C”)
located in Fairfax County, Virginia.

     
C.     Shops is the
owner of those certain parcels of land described on
Exhibit C (the “Shops Parcel”)
located in Fairfax County, Virginia.

     
D.     Perch and
Builders are the owners of that certain parcel of land described
on Exhibit D (the
“Builder Parcel”) located in Fairfax
County, Virginia.

     
E.     The FL Land,
Section 7-C, Shops Parcel and Builders Parcel (collectively
the “Land”) are encumbered by that Access
Easement and Maintenance Agreement, dated December 12,
1986, recorded among the Land Records of the Clerk of the
Circuit Court of Fairfax County Virginia (the “Land
Records”) in Deed Book 6575, at Page 651 as
amended by instruments recorded among the Land Records in Deed
Book 7554, at Page 1126 and Deed Book 8801, at
Page 1511 (the foregoing agreements are collectively
referred to as the “Original Agreement”).

     
F.     The parties to
this Agreement desire to amend and restate the Original
Agreement in its entirety and enter into this Agreement so as to
evidence the same.

 

     
NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

Article 1

Definitions

     
When used in this Agreement, the following terms
shall have the following definitions:

     
A.     Access
Road shall mean and refer collectively to the Existing
Access Road (hereinafter defined) and the Access Road Extension
(hereinafter defined).

     
B.     Access Road
Extension shall mean and refer to that portion of
Section 7-C described on Exhibit E Part 1
and depicted on the plan attached hereto as
Exhibit F (the “Plot Plan”).

     
C.     Allocable
Share shall mean and refer to each Owner’s respective
“Allocable Share” of Shared Cost (hereinafter defined)
which shall be the result obtained by dividing the given
calendar year’s Shared Cost by the total number of Parcels
within the Land upon which Floor Area is open for business with
the public. If the number of Parcels upon which Floor Area is
open for business with the public changes during any calendar
month, the number of Parcels upon which Floor Area is open for
business with the public as of the first day of such month shall
be deemed to constitute the number of Parcels throughout such
month.

     
D.     Annual
Budget shall mean and refer to the annual budget for the
Maintenance Costs (hereinafter defined) prepared by the Manager
(hereinafter defined) and approved by the Owners pursuant to
Article 4 hereof.

     
E.     Existing
Access Road shall mean and refer to the private rights of
way and streets known commonly as Shops Lane and Headquarters
Drive, which are more particularly described on
Exhibit E Part 2 and depicted on the Plot Plan.

     
F.     Floor Area
shall mean, from time to time, the aggregate of the actual
number of square feet of enclosed floor space within any
building located on a Parcel, from time to time, whether or not
actually occupied or, if no building is located on a Parcel, the
maximum number of square feet of floor space permitted by
Governmental Authorities to be built on such Parcel. If such
square footage changes during any calendar month, the square
footage as of the last day of such month shall be deemed to
constitute the square footage throughout such month.

2

 

     
G.     Governmental
Authorities shall mean all governmental or
quasi-governmental officials, agencies, bodies or governments
having jurisdiction over the Land including, without limitation,
the Commonwealth of Virginia and Fairfax County.

     
H.     Lease
shall mean any lease, deed or other instrument or arrangement
whereby an Occupant (other than an Owner) acquires rights to use
and/or occupy Floor Area. The terms and provisions of any Lease
shall only be binding upon the parties to such Lease and their
respective successors and assigns. Any Lease shall create only a
landlord-tenant relationship between the parties thereto and
their respective successors and assigns.

     
I.     Manager
shall mean the person selected, from time to time, pursuant to
Section 4.1 hereof, to perform the services outlined in
Article 4 hereof.

     
J.     Management
Fee shall mean the annual fee payable to the Manager equal
to five percent (5%) of the Maintenance Costs (exclusive of
insurance, real estate taxes and charges for utilities).

     
K.     Mortgagee
shall mean an institutional lender (one or more commercial or
savings banks, savings and loan associations, trust companies,
credit unions, industrial loan associations, insurance
companies, pension funds or business trusts, including but not
limited to real estate investment trusts, and other lender not
affiliated with the Owner or Occupant of the Parcel encumbered
by the Mortgage (hereinafter defined) regularly engaged in
financing the purchase, construction or improvement of real
estate, or any assignee of loans made by such lender, or any
combination of any of the foregoing entities) holding a
mortgage, deed of trust, sale-leaseback, or other interest
created for the purpose of securing an indebtedness and recorded
among the Land Records (“Mortgage”) encumbering
a Parcel which institutional lender, pursuant to this Agreement
has requested the rights of a Mortgagee under this Agreement.

     
L.     Occupant or
Occupants shall mean any Owner and any other Person
(hereinafter defined) entitled by Lease to use and occupy Floor
Area, or one or more of them, as the context may require.

     
M.     Owner
shall mean one or more Persons who owns, from time to time, a
Parcel in fee simple, including contract sellers, but does not
mean any Person having an interest in a Parcel solely by virtue
of either (i) a contract or as security for an obligation,
(ii) a Lease, or (iii) a Mortgage. If after a
Person’s acquisition of fee simple title to a Parcel such
Person leases such Parcel to a Person, then, if the Lease
expressly so provides, the tenant under such Lease shall be
deemed to be the sole Owner of such Parcel and shall have the
rights 

3

 

and obligations of an Owner hereunder so long as
the Lease remains in effect and the tenant remains in possession
of such Parcel. If the fee simple interest to all or a portion
of a Parcel is owned jointly or in common by two or more
persons, then all persons owning jointly or in common all or a
portion of the fee simple interest in such Parcel (each such
interest being hereinafter referred to as a “Jointly
Owned Interest”) shall be collectively deemed to be the
Owner of such Parcel. However, the acts of the Person who was
the Owner of the largest percentage of Jointly Owned Interest in
such Parcel, as determined by an examination of the Land Records
for such Parcel, shall be binding upon all Persons owning a
Jointly Owned Interest in such Parcel. The exercise of any
powers or rights by the Person owning the largest percentage of
a Jointly Owned Interest shall be binding upon all Owners of the
Parcel to the same extent as if such powers or rights had been
exercised by such Owner, and the Owners of such Parcel shall act
only through such Owner.

     
N.     Parcel
shall mean any portion of the Land designated, from time to
time, as a separate lot of record created by a deed of
subdivision, resubdivision, consolidation, boundary line
adjustment, deed, or other instrument recorded among the Land
Records.

     
O.     Permittees
shall mean all Occupants and their respective officers,
directors, employees, agents, partners, contractors, customers,
visitors, invitees, guests, licensees, tenants, subtenants and
concessionaires.

     
P.     Person or
Persons shall mean individuals, partnerships, associations,
corporations and any other form of business organization, or one
or more of them, as the context may require.

     
Q.     Maintenance
Cost shall mean all actual or estimated costs, expenses and
other charges during a calendar year incurred or paid in
accordance with the Budget in connection with the
(a) operation, maintenance (including, but not limited to
the removal of snow, trash and debris), security, insurance, and
repair and replacement of the Access Road; (b) real estate
and other taxes assessed against the Access Road or improvements
thereon which are paid by the Manager; (c) the operation,
maintenance, repair and replacement of traffic signage installed
in the Access Road (to the extent not maintained by Governmental
Authorities or an Owner); and (d) any other reasonable
costs incurred by the Manager relating to the Access Road
disclosed in the Annual Budget. Maintenance Cost shall be
determined in accordance with generally accepted accounting
principles. Maintenance Costs shall not include, and there shall
be subtracted from the Maintenance Costs all of the costs or
expenses associated with the following: (i) any fees to the
Manager or any other person for management or administration of
the Access Road; (ii) the cost of repairs or restoration of
damaged or destroyed improvements which are paid from insurance
proceeds from policies maintained by the Manager or any Owner

4

 

or Occupant or damages paid by a third party;
(iii) the cost of items which are considered capital
improvements under generally accepted accounting principles
provided, however, that if approved by Owners as part of the
Annual Budget, there shall be included each year an amount not
to exceed $2,000, which shall be held as a reserve for the sole
purpose of repaving the Access Road; (iv) the cost of
repairs or replacements performed under warranties or guarantees
which apply to the item being repaired or replaced; (v) any
costs incurred in connection with the initial construction of
the Access Road and/or any expansions thereof; (vi) any
costs related, directly or indirectly, to the maintenance of any
building; (vii) the cost of any repair to remedy damage
caused by or resulting from the negligence of any Occupant,
including their agents, contractors, servants, licensees, and
employees; (viii) all interest or penalties incurred as a
result of the failure of the Manager to pay bills as the same
shall become due; (ix) any costs for services included in
the Maintenance Costs which exceeds the prevailing market cost
for such services; (x) depreciation or amortization charges
associated with capital improvements or replacements;
(xi) costs to remediate or clean up any hazardous
materials; (xii) any costs associated with the maintenance
of any Parcel which is not the Access Road; and (xiii) any
costs or expenses not included in the Annual Budget that have
not been approved by Owners representing at least eighty percent
(80%) of the Floor Area.

     
R.     Shared
Costs shall mean and collectively refer to the Manager Fee
and Maintenance Costs.

Article 2

Construction of Access Road

     
(a) Prior to the date of this Agreement, the
Existing Access Road has been constructed and made available for
use pursuant to the Original Agreement.

     
(b) Promptly after the date of this
Agreement and subject to obtaining all necessary permits and
approvals from applicable Governmental Authorities, York and
Victor covenant and agree to construct, at its sole cost and
expense, the Access Road Extension. The Access Road Extension
will be constructed (i) in accordance with plans and
specifications for the same approved by applicable Governmental
Authorities, and (ii) in a manner which, when completed, it
will be equal in all respects to the quality of construction of
the Existing Access Road. York and Victor shall indemnify and
hold each Owner harmless from and against any lien, claim or
cause of action which may be asserted against an Owner or its
Parcel by any mechanic or materialman lien arising in connection
with the original construction of the Access Road Extension.

5

 

Article 3

Easement for Use of Access
Road

     
(a) FL, as the owner of the Existing Access
Road, and York and Victor as the owners of the Access Road
Extension, hereby grant unto each Owner, and reserves unto
itself, its successors and assignees, the perpetual
non-exclusive right, privilege and easements in the Access Road
for (i) ingress and egress; (ii) the passage and
accommodation of pedestrians and motor vehicles; and
(iii) the doing of such other things as are authorized or
required to be done on the Access Road under this Agreement.

     
The easements granted by this Section are
(i) perpetual, however, the enjoyment of the easements on
the Access Road Extension shall commence, as of the dates that
portions of the Access Road Extension are completed and
available for its intended use; and (ii) limited to the
portions their respective Parcels forming a part of the Access
Road as are within the boundaries of the private roadway
constructed thereon.

     
(b) The easements granted by this Section
may be used by any Occupant and its Permittees.

Article 4

Maintenance of Access Road

     
Section 4.1 Appointment and Replacement
of Manager. The services outlined in this Article shall be
initially provided by a Manager selected by FL. If, at any time,
the Owners representing at least sixty percent (60%) of the
Floor Area become dissatisfied with the services of the Manager
they may select, on or before November 1 of each year, a
replacement Manager for the forthcoming year, by notice given to
all the Owners. Any Manager selected must be experienced in the
provision of services similar to those set forth in this
Article, in first class mixed use projects in the Washington
D.C., Northern Virginia Metropolitan area.

     
Section 4.2 Duties of Manager; Access
Road Maintenance. The Manager shall, subject to the limits
of the Annual Budget, operate, maintain, repair and replace the
Access Road in a good and commercially sound manner, so as to
keep all such areas at all times in a safe and functional
condition, clean, and in good order and repair. Any such
operations, maintenance, repairs, or replacements shall be
performed in an efficient and economical manner and any costs
and expenses in connection therewith shall be reasonable and
competitive with costs and expenses for any comparable services
or materials required to be obtained by the Manager pursuant to
this Section, and shall, subject to the limits of the Annual
Budget, be repaired or replaced with materials, apparatus, and
facilities of quality at least equal to the quality of the
materials, apparatus, and 

6

 

facilities repaired or replaced. In connection
with such operation, maintenance, repair and replacement, but
not in limitation thereof, the Manager shall, subject to the
limits of the Annual Budget:

     
(a) Maintain, repair, and resurface the
paved portions of the Access Road to prevent the same from
becoming unsightly and repair all potholes and cracks. Such
activity shall, to the extent possible, be scheduled to occur
prior to or after normal business hours of the majority of the
Occupants of the Parcel affected by such activity and not during
the Christmas Season.

     
(b) Remove all papers, debris, filth, and
refuse from, and periodically sweep all portions of the Access
Road to keep the same in a clean and orderly condition.

     
(c) Promptly clear snow and ice from the
Access Road.

     
(d) Maintain and replace, if necessary, any
traffic signage or lights as shall be reasonably necessary in
the Access Road.

     
(e) Maintain all landscaped areas in the
Access Road, including the replacement of dead shrubs and other
landscaping as necessary, perform all weeding, pruning and
fertilizing, and maintain the automatic sprinkler system (if
any) serving such landscaped areas, all to the extent such
services are not performed by any Governmental Authorities
and/or the Owner of the Parcel upon which such landscaping is
located.

     
(f) Maintain, repaint and restripe markers,
directional lanes and traffic markers in the Access Road, as
needed.

     
(g) Pay all wages, workers’
compensation insurance, unemployment taxes, and other costs and
expenses of employees necessary to maintain the Access Road.

     
(h) Pay all contractors’ fees in the
event management, maintenance, and operation of the Access Road
is performed by an independent contractor.

     
Section 4.3 Annual Budget; Payment of
Shared Costs. Each Owner shall pay or require its Occupant
to pay its Allocable Share of the Shared Costs. Such payments
shall be made, in advance, on or before the first day of each
month, and shall be determined in accordance with the following:

     
(a) Concurrently with the execution of this
Agreement, and thereafter on or before November 1 of each
calendar year, the Manager shall cause to be prepared and
submitted to each Owner an annual statement (“Annual
Statement”).

7

 

     
(b) Each Annual Statement shall:
(i) contain a statement of the actual Shared Costs for the
previous year, (ii) be accompanied with the budget for the
forthcoming year, and (iii) set forth a computation of the
Owner’s Allocable Share of Shared Costs for the forthcoming
year based on the proposed annual Budget for the forthcoming
year (the “Allocable Share”). Within thirty
(30) days after the delivery of the Annual Statement, each
Owner shall notify the Manager as to whether or not it approves
the proposed budget. Once the proposed budget set forth in the
Annual Statement is approved by Owners representing sixty
percent (60%) of the Floor Area, such proposed budget shall be
the Annual Budget for the forthcoming year. Until the budget is
approved, the Manager will continue to operate under the
previous year’s budget.

     
(c) Commencing on the date that Floor Area
on the Parcel in question is open for business with the public,
the Owner will pay to the Manager on a monthly basis an amount
equal to one twelfth ( 1/12) of the Parcel’s Allocable
Share. Until the Annual Budget is developed, each Owner shall
continue to pay monthly payment due for the Parcel based on the
previous year’s Allocable Share. Once the Annual Budget for
the year is approved as provided in (b) above, each Owner shall
make a lump sum payment equal to the amount, if any, by which
its payments made pursuant to the preceding sentence is less
than the Owner’s Allocable Share for the period in
question, as determined by the Annual Budget. If such payments
exceed the amount due from an Owner, the Manager shall credit
such amount to the payments is required to make during the year
covered by the new Annual Budget.

     
(d) It is acknowledged that the Allocable
Share of a Parcel is subject to adjustment as additional Parcels
have Floor Area open for business with the public. To the extent
that the Annual Statement reveals that an Owner has underpaid
its Allocable Share, the Owner shall within thirty
(30) days after its receipt of the Annual Statement, make a
lump sum payment to the Manager equal to the amount of the
underpayment. Should the Annual Statement reveal that an Owner
has overpaid its Allocable Share, then the Manager shall credit
such amounts to the payments the Owner is required to make
pursuant to subparagraph (c) of this Article.

Article 5

Term of Agreement

Amendments

     
Section 5.1 Term. Except for the
easements granted by Article 3 hereof which are perpetual,
this Agreement shall remain in full force and effect for a term
(the “Term”) of seventy-five (75) years
from the date this Agreement is recorded among the Land Records,
or until such earlier time as may be required in order that this
Agreement will not be invalidated or be subject to invalidation
by reason of a limitation imposed by law on the duration
thereof. Upon a vote of 

8

 

the Owners representing a majority of the Floor
Area within the Land, the Term of this Agreement will be
continued in ten (10) year incremental extensions by
recording an amendment to this Agreement by the end of the
initial seventy-five (75) years or any successive ten
(10) year extension thereof.

     
Section 5.2 Amendments. This
Agreement may be amended or otherwise modified only by a
writing, recorded among the Land Records, signed by
(i) Owners representing eighty percent (80%) of the
Floor Area within the Land; and (ii) the Owner of the
Parcels comprising the Access Road.

     
Section 5.3 Automatic Termination.
Notwithstanding Section 5.1 hereof, if at any time all or
any portion of the Access Road are dedicated and accepted for
public street purposes, this Agreement (and the easements
granted hereunder) shall terminate to the extent of such
dedication and acceptance.

Article 6

Miscellaneous Provisions

     
Section 6.1 Exhibits. Each reference
herein to an Exhibit refers to the applicable Exhibit that is
attached to this Agreement. All such Exhibits constitute a part
of this Agreement and by this Section are expressly made a part
hereof.

     
Section 6.2 Captions; Pronouns. The
captions of this Agreement are inserted only as a matter of
convenience and for reference. They do not define, limit or
describe the scope or intent of the provisions of this Agreement
and they shall not affect the interpretation hereof. Whenever
singular, plural, masculine, feminine or neuter pronouns are
used herein they shall be construed interchangeably so as to fit
the applicable context.

     
Section 6.3 Locative Adverbs. The
locative adverbs “herein”, “hereunder”,
“hereto”, “hereinafter”, and like words
wherever the same appear herein, mean and refer to this
Agreement in its entirety and not to any specific Article,
Section or Subsection or Exhibit hereof.

     
Section 6.4 Right to Enjoin. In the
event of any violation or threatened violation of any of the
provisions of this Agreement by an Occupant any Owner shall have
the right to obtain from a court of competent jurisdiction an
injunction, against such violation or threatened violation and
any defense that an adequate remedy at law may exist is hereby
waived.

     
Section 6.5 Remedies Cumulative. The
rights and remedies provided in this Agreement shall be deemed
to be cumulative and no one of such rights and remedies shall be
exclusive of any of the others, or of any other right or remedy
at law or in equity which an Owner might otherwise have by
virtue of a default 

9

 

hereunder, and the exercise of one such right or
remedy shall not impair the standing of an Owner to exercise any
other right or remedy.

     
Section 6.6 Waiver of Default. A
waiver of any default by any Person must be in writing and no
such waiver shall be implied from any omission to take any
action in respect of such default. No express written waiver of
any default shall affect any default or cover any period of time
other than the default and period of time specified in such
express waiver. One or more written waivers of any default in
the performance of any provisions of this Agreement shall not be
deemed to be a waiver of any subsequent default in the
performance of the same provision or any other term of provision
contained herein. No consent or approval by an Owner to or of
any act or request by an Occupant requiring consent or approval
shall be deemed to waive or render unnecessary the consent or
approval to or of any subsequent similar act or requests.

     
Section 6.7 Interest on Late Payments and
Lien. Any sums payable by an Occupant under this Agreement
that are not paid within thirty (30) days after the date when
originally due shall bear interest from the date the payment was
originally due at the rate of three percent (3%) per annum over
the then existing prime rate of interest charged by First Union
Bank of Virginia, N.A. (but in no event exceeding the maximum
rate per annum permitted by Virginia law for commercial
transactions) until the date of payment.

     
If an Occupant is required by the terms of this
Agreement to pay the Manager any sum, then, in addition to
interest on said sum as aforesaid, the Manager shall have and is
hereby given as security for such sum and interest due it, a
valid and enforceable lien (the “Security
Lien”) upon the Occupant’s right, title and
interest in and to its Parcel and all the improvements at any
time and from time to time situated thereon (the
“Occupant’s Property”), and the Manager
shall have the right to enforce and foreclose the Security Lien
in accordance with Virginia law, it being understood and agreed
that the Security Lien, once established, shall be superior to
any other lien and encumbrance on the Occupant’s Parcel
created or arising after the date of recording of this
Agreement, excepting only the lien of any Mortgage, and as to
any such Mortgage, the Security Lien shall be subordinate.
Anything hereinbefore in this Section contained to the contrary
notwithstanding, it is expressly understood and agreed that the
Security Lien is subject to the following conditions:

     
(a) The Security Lien shall be subject and
subordinate to any and all advances made under any Mortgage in
whatever amounts and whenever made with interest thereon and to
any expenses, charges and fees incurred thereby, including any
and all of such advances, interest, expenses, charges and fees
which may increase the indebtedness secured by such Mortgage
above the original principal amount thereof, provided the same
are advanced or incurred 

10

 

under any of the expressed provisions of such
Mortgage or any extension, consolidation, modification or
supplement thereto.

     
(b) The Security Lien shall be subject and
subordinate to any and all Leases upon all or any part of the
Occupant’s Parcel executed prior to the date of the
Security Lien.

     
Section 6.8 No Partnership, Joint Venture
or Principal Agent Relationship. Neither anything in this
Agreement nor any acts of any Owner shall be deemed to create
the relationship of principal and agent, or of partnership, or
of joint venture, or of any association between any Persons.

     
Section 6.9 Severability. If any
provision of this Agreement shall to any extent be invalid or
unenforceable, the remainder of the Agreement shall not be
affected thereby, and each remaining provision of the Agreement,
unless specifically conditioned upon such invalid or
unenforceable provision, shall be valid and enforceable to the
fullest extent permitted by law.

     
Section 6.10 Governing Law. This
Agreement shall be construed and governed in accordance with the
laws of the Commonwealth of Virginia.

     
Section 6.11 Release from Liability.
(a) Any Owner shall be bound by this Agreement only as to the
Parcel as to which such Person is the Owner and only during the
period that such Person is the Owner of such Parcel. Although
Persons may be released under this paragraph, the easements,
covenants, and restrictions in this Agreement shall continue to
be benefits and servitudes upon the Parcels and shall run with
the land.

     
(b) In the event that the holder of any
Mortgage or its nominee, designee, successor or assign shall
acquire title to any Parcel by reason of a foreclosure of
Mortgage, a sale pursuant to a power of sale contained in such
Mortgage, a deed taken in lieu of foreclosure, or otherwise,
such lender or its nominee, designee, successor or assign shall
not be liable for any acts, omissions or occurrences that took
place prior to the time when such lender or its nominee,
designee, successor or assign shall have acquired title as
aforesaid, but the Owner of such Parcel that was liable pursuant
to the provisions of this Agreement immediately before such
acquisition of the title by the lender or its nominee, designee,
successor or assign shall be and remain (after such acquisition
of title) personally liable for any acts, omissions or
occurrences that took place prior to such acquisition of title.

     
Section 6.12 Limitation of Liability.
No partner, shareholder, trustee, beneficiary, director,
officer, or employee of an Owner, or any affiliate of an Owner,
shall have any personal liability under this Agreement. In
addition, in the event any Person obtains a judgment against any
Owner in connection with this 

11

 

Agreement, such person’s sole recourse shall
be to the estate and interest of such Owner in and to its
Parcel; provided, however, that the foregoing limitation of
liability shall not apply in the event of any fraud, intentional
misrepresentation, or intentional misconduct by such Owner or
circumstances addressed in Section 6.11(b) hereof where an
Owner is personally liable for acts occurring prior to a
Mortgagee’s acquisition of title to the Parcel of the
Owner. Nothing in this Section shall limit in any way any
Person’s right to pursue equitable remedies in the event of
a default by an Owner or an Occupant under this Agreement.

     
Section 6.13 Mortgagee Notice and Right
to Cure. A Mortgagee, during such period of time as such
Mortgage shall be of record in the Land Records, shall be
entitled to receive notice of any default by the maker of a
Mortgage, provided that prior to the giving of the notice of
default such Mortgagee shall have delivered a notice in the form
hereinafter contained to the Manager and each Owner. The form of
such notice shall be substantially as follows:

		
	 	
     The undersigned, whose address is [insert
    mortgagee address] does hereby certify that it is the holder of
    a first/second/etc. mortgage (the “Mortgage”)
    upon the tract of land described on Exhibit A
    attached hereto and made a part hereof and being the Parcel of
    [insert name] (the “Mortgagor”) in Fairfax
    County, Virginia. In the event that any notice shall be given of
    the default of the Mortgagor, upon whose Parcel this Mortgage
    applies, a copy thereof shall be delivered to the undersigned at
    the address set forth herein, and the undersigned shall
    thereafter have all rights (but not the obligations) of the
    Mortgagor to cure a default by the Mortgagor. Failure to deliver
    a copy of such notice to the undersigned shall in no way affect
    the validity of the notice of default to the Mortgagor, but
    shall make the same invalid as it respects the interest of the
    Mortgagee in and to the Parcel.
    

     
Any notice to such Mortgagee shall be mailed
registered mail return receipt requested or sent by over-night
delivery which provides receipt evidencing delivery to the
address in the United States referred to in the form of notice
set forth above. The giving of or failure to give any notice of
default or the failure to deliver a copy to any such Mortgagee
shall in no event create any liability on the part of the Owner
so declaring or entitled to declare a default. The Mortgagee
shall be permitted to cure any such default within forty-five
(45) days after a copy of the notice of default shall have
been sent to such Mortgagee, provided that, in the case of a
default which cannot with diligence be remedied within such
period of forty-five (45) days, if it has noticed the
Owners that it is curing the default and if it has promptly
commenced within the forty-five (45) day period and has
proceeded and is proceeding with all due diligence to 

12

 

remedy such default, then such Mortgagee shall
have an additional reasonably required period as may be
necessary to remedy such default. The forty-five (45) day cure
period of the Mortgagee to cure a default shall commence upon
the expiration of any cure period granted to the Owner under
this document.

     
Section 6.14. Binding Effect. This
Agreement shall run with the Land encumbered hereby and shall be
binding upon and, to the extent provided herein, inure to the
benefit of all Owners and Occupants and their successors and
assigns.

[Signatures to appear on next page.]

13

 

 

SUPPLEMENT TO THE

AMENDED AND RESTATED

ACCESS EASEMENT

THIS SUPPLEMENT TO THE AMENDED AND RESTATED
ACCESS EASEMENT (the “Agreement”) is made and
entered into
this           day
of                     ,
1996 by and among Fair Lakes Associates L.C., a Virginia limited
liability company (“FL”), The Shops at Fair
Lakes L.P., a Virginia limited partnership
(“Shops”), Victor Limited Partnership, a
Virginia limited partnership (“Victor”) York
Limited Partnership, a Virginia limited partnership
(“York”), Perch Associates Limited Partnership,
a Virginia limited partnership (“Perch”),
Builders Limited Partnership, a Virginia limited partnership
(“Builders”), and Fair Lakes 7-B-D1 L.C., a
Virginia limited liability company (“FL-7B) with reference
to the following:

RECITALS:

     
A.     Reference is made
to that certain Amended and Restated Access Easement dated
July 3, 1996, and recorded among the Land Records of the
Clerk of the Circuit Court of Fairfax County, Virginia (the
“Land Records”) in Deed Book 9750 at page 1108
(the “Easement Agreement”). All capitalized terms
defined in the Easement Agreement which are used in this
Agreement shall have the same meaning and definition when used
herein.

     
B.     Since the
Easement Agreement was recorded, FL-7B acquired Parcel D-1, Fair
Lakes, Section 7-B as the same appears duly dedicated,
platted and recorded in that Deed of Resubdivision recorded
among the Land Records in Deed Book 9669 at page 1201,
pursuant to that certain Deed of Contribution recorded among the
Land Records in Deed Book 9752 at page 1038.

     
C.     The parties
desire to clarify certain ambiguities in the Easement Agreement
regarding the Existing Access Road in light of the fact that a
portion of the same is located on land owned by the Shops, and
enter into the Agreement to amend and supplement the Easement
Agreement in the manner hereinafter set forth.

     
NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

1

 

1.     Exhibit E Part 2
to the Easement Agreement is deleted and replaced with Exhibit A
to the Amendment, which by this reference is incorporated herein.

2.     Article 3(a) of
the Easement Agreement, is deleted in its entirety and replaced
with the following:

		
	 	     
    (a) FL and the Shops, as the owners of the
    Existing Access Road, and York and Victor as the owners of the
    Access Road Extension, hereby grant unto each Owner, and
    reserves unto itself, its successors and assignees, the
    perpetual non-exclusive right, privilege and easements in the
    Access Road for (i) ingress and egress; (ii) the
    passage and accommodation of pedestrians and motor vehicles; and
    (iii) the doing of such other things as are authorized or
    required to be done on the Access Road under this Agreement.
    
	 
	 	     
    The easements granted by this Article 3(a)
    are (i) perpetual, however, the enjoyment of the easements
    on the Access Road Extension shall commence, as of the dates
    that portions of the Access Road Extension are completed and
    available for its intended use; and (ii) limited to the
    portions their respective Parcels forming a part of the Access
    Road as are within the boundaries of the private roadway
    constructed thereon.
    

3.     As Amended by
this Agreement, the Easement Agreement remains in full force and
effect and is hereby ratified and affirmed.

2

 

EXHIBIT “G”

EXCLUSIONS FROM COMMON AREA MAINTENANCE
COSTS

(i) Cost of repairs, restoration,
replacements or other work required as a result of
(i) fire, windstorm, or other insurable casualty that
completely or partially destroys the Building but only to the
extent that such costs are covered or reimbursable by
Landlord’s insurance carrier; (2) the partial or total
taking of the Building by eminent domain; (3) the gross
negligence or wilful misconduct of Landlord, or any subsidiary
or affiliate of Landlord, or any representative, employee or
agent of Landlord (including the costs of any deductibles paid
by Landlord); or (4) the act of any other tenant in the
Shopping Center, or of any other tenant’s agents,
employees, licensees or invitees to the extent that Landlord
actually recovers the applicable cost from such person;

(ii) Leasing commissions, attorney’s
fees (except for reasonable attorney’s fees incurred by
Landlord to enforce Landlord’s rules and regulations for
the operation of the Building) and costs and disbursements and
other expenses of Landlord related to lease negotiations, the
resolution of disputes with tenants, other occupants,
prospective tenants or occupants of the Building, consultants,
management agents, purchasers or mortgagees of the Building;

(iii) Allowances, concessions and
Landlord’s other costs and expenses related to completing,
furnishing, renovating, installing fixtures, improving,
decorating or redecorating space for tenants (including Tenant),
prospective tenants or other occupants and prospective occupants
of the Shopping Center, or vacant, leasable space in the
Building;

(iv) Costs of the initial construction of
the Building, and repairing, replacing or correcting defects
(excluding costs of repair for normal wear and tear) in the
construction of the Building, tenant improvements, the parking
lot servicing the Building or other improvements of the Shopping
Center, or in the Building equipment;

(v) Landlord’s costs or expenses
relating to another tenant’s or occupant’s space
related to (1) rendering any service or providing any
benefit to such tenant or occupant provided by Landlord, that
exceeds those that Landlord must provide to Tenant pursuant to
his Lease (including without limitation insurance coverage for
another tenant’s or occupant’s leasehold
improvements), or (2) other services or benefits that
exceed standard services that Landlord provides to all tenants
or occupants of the Building, whether or not Landlord actually
charges other tenants or occupants for such standard service or
benefit;

(vi) Payment of principal and interest or
other finance charges made on any debt, and rental payments made
under any ground or underlying lease or leases, except to the
extent that a portion of such rental payments is for and
valorem/real estate taxes or insurance premiums on the Building;

(vii) Costs incurred in connection with the
sale, financing, refinancing, mortgaging, selling or change of
ownership of the Building, including brokerage commissions,
attorneys’ fees, accountants fees, closing costs, title
insurance premiums, transfer taxes and interest charges;

(viii) Costs, fines, interest, penalties,
legal fees or costs of litigation incurred by Landlord because
of Landlord’s failure to punctually pay tax, utility and
other payments;

(ix) Costs incurred by Landlord for
trustee’s fees, partnership organizational expenses and
accounting fees, except 

G-1

 

accounting fees relating solely to the ownership
and operation of the Building (excluding, however, incremental
accounting fees to the extent incurred separately in reporting
operating results to the Building owners or lenders;

(x) Capital costs, including without
limitation, capital improvements, capital equipment and capital
tools, all as determined in accordance with generally accepted
accounting principles, other than those that actually reduce
operating expenses, to the extent of such reduction;

(xi) Landlord’s general partnership, or
corporate overhead and general and administrative expenses other
than as set forth in the lease;

(xii) Any compensation paid to clerks,
attendants or other persons in commercial concessions operated
by Landlord, but only if the profit from such commercial
concession is paid to the Landlord;

(xiii) Rentals and other related expenses
incurred in leasing air conditioning systems, elevators or other
equipment customarily treated as a capital expenditure, except
equipment not affixed to the Building used in providing
janitorial or similar services, and except equipment necessary
for the repair and maintenance of Building equipment;

(xiv) Rent for Landlord’s on-site
management or leasing office, or any other offices or spaces of
Landlord or any related entity;

(xv) Landlord’s income and franchise
taxes, special assessments, and other business taxes, except
those business taxes that relate solely to the operation of the
Building;

(xvi) All amounts that would constitute
operating expenses paid to any affiliate or subsidiaries of
Landlord, or any representative, employee or agent of the
foregoing in excess of competitive rates for similar services of
comparable quality rendered by persons or entities of similar
skills, competence and experience;

(xvii) Costs or expenses of utilities
directly metered to tenants of the Building and payable
separately by such tenants;

(xviii) Increased insurance premiums caused
by Landlord’s hazardous acts or any other tenant’s
hazardous acts;

(xix) Moving expenses and related costs of
tenants of the Building to the extent not provided by Landlord
(i) to Tenant and (ii) generally to other initial
tenants of the Building;

(xx) Advertising and promotional costs
associated with the leasing of the Building, and costs of signs
in or on the Building identifying the owners of the Building or
any tenant of the Building;

(xxi) Costs incurred to correct violations
of any law, rule, order or regulation in effect as of the Lease
Commencement Date, of which written notice has been given to
Landlord;

(xxii) Costs incurred (less costs of
recovery) for any items covered by a manufacturer’s
materialman’s vendor’s or contractor’s warranty
(a “Warranty”) which are paid by such manufacturer,
materialman, vendor or contractor (Landlord shall pursue a
breach of warranty claim for items covered by a Warranty unless
Landlord determines in good faith that such action would not be
in the best interest of the tenants of the Building;

(xxiii) Non-cash items such as deductions
for depreciation and amortization of the Building and Building
equipment, or interest on capital invested, except on materials,
tools, supplies and vendor-type equipment purchases by Landlord
to 

G-2

 

enable Landlord to supply services Landlord might
otherwise contract for with a third party where such
depreciation is included in the charge for such third
party’s service, all as determined in accordance with
generally accepted accounting principles, consistently applied;

(xxiv) Services provided and costs incurred
in connection with the operation of ancillary operations owed,
operated or subsidized by Landlord;

(xxv) Expenses and costs not normally
included by Landlords of buildings of the same quality and
classification as the Building in accordance with generally
accepted accounting principles, or that are not competitive or
not prudent in view of the goods and services obtained for such
expense or costs;

(xxvi) Consulting costs and expenses paid by
Landlord, unless the same relate exclusively to the improved
management, operation or safety of the Building;

(bb) The cost of any “tap fees” or
one-time lump sum sewer or water connection fees for the
Building payable in connection with the initial construction of
the Building;

(cc) Rental for any space in the Building
set aside for conference facilities, storage facilities;

(dd) Vault rental; and

(ee) Wages and salaries for offsite
employees and employees at the Building above the level of
Building Manager.

G-3

 

FIRST AMENDMENT TO LEASE

     
THIS FIRST AMENDMENT TO LEASE (this “First
Amendment”) is made as of this 17 day of September,
1997, by and between THE SHOPS AT FAIR LAKES, L.P., a Virginia
limited partnership (“Landlord”) and ALLIANCE BANK, a
bank in organization (“Tenant”).

WITNESSETH

RECITALS:

     
R-1.     Landlord and
Tenant entered into a certain Lease Agreement dated
September 15, 1997 (the “Lease”), for premises
known as 12735 Shops Lane, containing approximately Three
Thousand Eight Hundred Eighteen (3,818) square feet (the
“Premises”).

     
R-2.     Landlord and
Tenant desire to amend and modify the Lease as hereinafter set
forth.

     
NOW, THEREFORE, in consideration of the
agreements herein contained, the parties hereto agree as follows:

     
1.     Incorporation
of Recitals. The recitals set forth above are incorporated
herein and made a part of this First Amendment to the same
extent as if set forth herein in full.

     
2.     Bankruptcy or
Insolvency. Part XVI of the General Lease Provisions
entitled “Bankruptcy or Insolvency” is hereby amended
to include the following Section:

		
	 	     
    16.07.     Termination
    of Lease.

          
Notwithstanding any other provisions contained in
this Lease, in the event (a) Tenant or its successors or
assignees shall become insolvent or bankrupt, or it or their
interests under this Lease shall be levied upon or sold under
execution or other legal process, or (b) the depository
institution then operating on the Premises is closed, or is
taken over by any depository institution supervisory authority
(“Authority”), Landlord may, in either such event,
terminate this Lease only with the concurrence of any receiver
or liquidator appointed by such Authority (which concurrence
shall be deemed given if the receiver or liquidator fails to
respond to Landlord’s termination request within sixty
(60) days after such receiver’s or liquidator’s
receipt of same); provided, that in the event this Lease is
terminated with the concurrence of the receiver or liquidator as
provided above (or such concurrence is deemed given as provided
above), the maximum claim of Landlord for rent, damages, or
indemnity for injury resulting from the termination, rejection,
or abandonment of the unexpired Lease shall by law in no event
be more than an amount equal to all accrued and unpaid rent to
the date of termination, plus all damages Landlord is otherwise
entitled to under Section 17.02 of the Lease, including,
without limitation, the cost of reletting the Premises.

     
3.     Ratification
of Lease/Conflict. All terms and conditions of the Lease are
hereby ratified and affirmed, as modified by this First
Amendment. To the extent there is any inconsistency between the
Lease and this First Amendment, the provisions of this First
Amendment shall control.

     
4.     No Waiver.
Tenant hereby acknowledges that Landlord’s execution of
this First Amendment shall not (a) constitute a waiver of
any of Landlord’s rights and remedies under the Lease or at
law with respect to the Tenant’s obligations under the
Lease and (b) be construed as a bar to any subsequent 

 

THE PETERSON COMPANIES

DISTRIBUTION MEMORANDUM

	 	 	 
	
    
    Date:

    	 	
    July 21, 1998
    
	
    
    To:

    	 	
    Mr. George Webb, Alliance Bank (Original)

    Mr. Dave Cordingley, Alliance Bank (Copy)

    Paul Darr, The Irving Group (Copy)

    Faith Rodgers, Director H/P Management, Inc. (Original)

    Retail Leasing File (Original)

    Amy Cook, Holland and Knight (Copy)
    
	
    
    From:

    	 	
    Nora Eakins

    Phone: (703) 631-75982

    Fax: (703) 818-1250
    
	
    
    Subj:

    	 	
    Alliance Bank

    Shops at Fair Lakes, Fairfax, Virginia

REMARKS:

Enclosed please find a fully executed original of
a Second Amendment to Lease for Alliance Bank dated
July 10, 1998.

If you need further information, please let me
know.

 

SECOND AMENDMENT TO LEASE

     
THIS SECOND AMENDMENT TO LEASE (this “Second
Amendment”) is made as of this 10 day of July, 1998,
by and between THE SHOPS AT FAIR LAKES, L.P., a Virginia limited
partnership (“Landlord”) and ALLIANCE BANK, a
financial institution in formation (“Tenant”).

WITNESSETH

RECITALS:

     
R-1.     Landlord and
Tenant entered into a certain Lease Agreement dated
September 15, 1997 (the “Deed of Lease”), for
premises known as 12735 Shops Lane, containing approximately
Three Thousand Eight Hundred Eighteen (3,818) square feet (the
“Premises”).

     
R-2.     Said Deed of
Lease has been amended by an Amendment to Lease dated
September 17, 1998 (the “First Amendment”). The
Deed of Lease, as amended by the First Amendment and the Second
Amendment, is referred to hereafter as the “Lease.”

     
R-3.     Landlord and
Tenant desire to amend and modify the Lease as hereinafter set
forth.

     
NOW, THEREFORE, in consideration of the
agreements herein contained, the parties hereto agree as follows:

     
1.     Incorporation
of Recitals. The recitals set forth above are incorporated
herein and made a part of this Second Amendment to the same
extent as if set forth herein in full.

     
2.     Section 1.01(1)
of the Lease is hereby deleted in its entirety and the following
is substituted in its place:

		
	 	     
    (1) Required Opening Date: January 1,
    1999
    

     
3.     Section 1.03 of
Exhibit “C” to the Lease is hereby deleted in its
entirety and the following is substituted in its place:

		
	 	     
    Section
    1.03.     Minimum Rent.

          
During the Term of this Lease, Tenant shall pay a
Minimum Rent, which shall be the amount specified as Minimum
Rent in Article I of the Lease, to Landlord in lawful money
of the United States, without any prior demand and without
any offset or deduction whatsoever, in advance on the first day
of each calendar month during the Term of this Lease.

 

     
4.     Section 2.02 of
the Lease is hereby deleted in its entirety and the following is
substituted in its place:

		
	 	     
    2.02.     Primary
    Term. The Primary Term of this Lease shall be for the period
    specified in Section 1.01 (e). The Primary Term will commence on
    the Commencement Date, which for purposes of this Lease shall be
    August 1, 1998.
    

     
5.     Contingencies.
Section 2.05(a) of the Lease is hereby deleted in its entirety
and the following is substituted in its place:

		
	 	     
    2.05(a).     Contingencies.

     
(a) (i) Tenant has submitted its amended
applications with the Virginia State Corporation Commission,
Federal Deposit Insurance Corporation and the Federal Reserve
Board (collectively referred to herein as the “Regulatory
Agencies”) and has not received approval to operate its
bank from such Regulatory Agencies subject to the condition that
Tenant raise an additional One Million Five Hundred Thousand and
No/100 Dollars ($1,500,000.00). Tenant shall use diligent
efforts to comply with this condition on or before
January 1, 1999. Immediately upon satisfaction of this
condition, Tenant shall notify Landlord in writing, and Tenant
shall specify the date of such final approval.

     
(ii) Subject to the terms of this subsection
(ii), Tenant shall have an option to terminate this Lease at any
time prior to January 1, 1999, but before Tenant fulfills
the condition set forth in subsection (i) above. To exercise
this termination option, Tenant must (i) give Landlord written
notice of the exercise thereof (“Tenant’s
Notice”), and (ii) pay to Landlord with Tenant’s
Notice a termination fee of Seventy-Five Thousand and No/100
Dollars ($75,000.00). The termination date will be the date
which is the first day of the month following the date of
Landlord’s receipt of Tenant’s Notice
(“Tenant’s Termination Date”). By way of example,
if Landlord receives Tenant’s Notice on November 15,
1998, Tenant’s Termination Date shall be December 1,
1998. From the date of Tenant’s Notice through
Tenant’s Termination Date, the Lease shall remain in full
force and effect, and Tenant shall honor all of its obligations
hereunder.

     
Tenant may not exercise this termination option
if, at the time it exercises the option, Tenant is, in monetary
default under this Lease. If Tenant exercises this termination
option, Tenant will surrender the Premises to Landlord on or
before Tenant’s Termination Date in the condition required
by Section 18.01 of this Lease.

     
If Tenant fails to exercise the termination
option set forth in this Section on or before January 1,
1999, then any 

2

 

attempted exercise of such termination option
shall be null, void and of no force and effect.

     
If Tenant has not fulfilled the condition set
forth in subsection (i) above on or before January 1, 1999,
Landlord may terminate this Lease upon written notice to Tenant
given at any time after January 1, 1999, but before Tenant
fulfills the condition under subsection (i).

     
6.     Ratification
of Lease/Conflict. All terms and conditions of the Lease are
hereby ratified and affirmed, as modified by this Second
Amendment. To the extent there is any inconsistency between the
Lease and this Second Amendment, the provisions of this Second
Amendment shall control.

     
7.     No Waiver.
Tenant hereby acknowledges that Landlord’s execution of
this Second Amendment shall not (a) constitute a waiver of
any of Landlord’s rights and remedies under the Lease or at
law with respect to the Tenant’s obligations under the
Lease and (b) be construed as a bar to any subsequent
enforcement of any of Landlord’s rights or remedies against
Tenant.

     
8.     Capitalized
Terms. All capitalized terms in this Second Amendment shall
have the same meanings as in the Lease unless expressly provided
otherwise herein.

     
IN WITNESS WHEREOF, the parties have caused this
Second Amendment to be executed under seal as of the date first
above written.

	 	 	 
	
    
    WITNESS:
    

    	 	
    LANDLORD:
    
	 
	 	 	
    THE SHOPS AT FAIR LAKES, L.P.,

    a Virginia limited partnership
    
	 
	 
	
    
    By: /s/ Nora H. Eakins
    

    	 	
    By: /s/ Milton V. Peterson
    
	
	 	

	 	 	
    Name: Milton V. Peterson
    
	 	 	
    Its: 
	 
	 
	 
	 
	
    
    WITNESS:
    

    	 	
    ALLIANCE BANK,

    a financial institution in formation
    
	 
	 
	
    
    By: /s/ [SIG]
    

    	 	
    By: /s/ George S. Webb
    
	
	 	

	 	 	
    Name: George S. Webb
    
	 	 	
    Its: Director
    

3

 

enforcement of any of Landlord’s rights or
remedies against Tenant.

     
5.     Capitalized
Terms. All capitalized terms in this First Amendment shall
have the same meanings as in the Lease unless expressly provided
otherwise herein.

     
IN WITNESS WHEREOF, the parties have caused this
First Amendment to be executed under seal as of the date first
above written.

	 	 	 
	
    WITNESS:
    	 	
    LANDLORD:
    
	 	 	
    THE SHOPS AT FAIR LAKES, L.P.,

    a Virginia limited partnership
    
	 
	 	 	
    By: /s/ [SIG] (Seal)
    
	
	 	

	 	 	
    Name:
    
	 	 	
    Its:
    
	 
	
    WITNESS:
    	 	
    ALLIANCE BANK,

    a Bank in Organization
    
	 
	
    /s/ [SIG]
    	 	
    By: /s/ Donald E. Ervin
    
	
	 	

	 	 	
    Name: Donald E. Ervin
    
	 	 	
    Its: President
    

4

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