Document:

exv10w90

 

RETAIL LEASE

BETWEEN

BALLSTON 4501, L.L.C. (“LANDLORD”)

AND

ALLIANCE BANK CORPORATION (“TENANT”)

DATE OF LEASE:         , 2003

	 	 	 
	THE BUILDING:	 	4501 North Fairfax Drive
	 	 	Arlington, Virginia 22203

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.	 	
DEFINITIONS
	 	 	1	 
	2.	 	
LEASE GRANT
	 	 	5	 
	3.	 	
ADJUSTMENT OF COMMENCEMENT DATE/POSSESSION
	 	 	5	 
	4.	 	
USE
	 	 	6	 
	5.	 	
BASE RENT
	 	 	10	 
	6.	 	
SECURITY DEPOSIT
	 	 	11	 
	7.	 	
SERVICES TO BE FURNISHED BY LANDLORD
	 	 	13	 
	8.	 	
LEASEHOLD IMPROVEMENTS/TENANT’S PROPERTY
	 	 	16	 
	9.	 	
SIGNAGE
	 	 	17	 
	10.	 	
REPAIRS AND ALTERATIONS BY TENANT
	 	 	18	 
	11.	 	
USE OF ELECTRICAL SERVICES BY TENANT
	 	 	21	 
	12.	 	
ENTRY BY LANDLORD
	 	 	22	 
	13.	 	
ASSIGNMENT AND SUBLETTING
	 	 	22	 
	14.	 	
MECHANIC’S LIENS
	 	 	24	 
	15.	 	
INSURANCE
	 	 	25	 
	16.	 	
INDEMNITY
	 	 	27	 
	17.	 	
DAMAGES FROM CERTAIN CAUSES
	 	 	27	 
	18.	 	
CASUALTY DAMAGE
	 	 	28	 
	19.	 	
CONDEMNATION
	 	 	29	 
	20.	 	
HAZARDOUS SUBSTANCES
	 	 	29	 
	21.	 	
AMERICANS WITH DISABILITIES ACT
	 	 	31	 
	22.	 	
EVENTS OF DEFAULT
	 	 	32	 
	23.	 	
REMEDIES
	 	 	33	 
	24.	 	
NO WAIVER
	 	 	38	 

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	25.	 	
PEACEFUL ENJOYMENT
	 	 	38	 
	26.	 	
[RESERVED]
	 	 	38	 
	27.	 	
HOLDING OVER
	 	 	38	 
	28.	 	
SUBORDINATION/ESTOPPEL CERTIFICATE
	 	 	39	 
	29.	 	
NOTICE
	 	 	41	 
	30.	 	
[RESERVED]
	 	 	41	 
	31.	 	
SURRENDER OF PREMISES
	 	 	41	 
	32.	 	
RIGHTS RESERVED TO LANDLORD
	 	 	42	 
	33.	 	
MISCELLANEOUS
	 	 	43	 
	34.	 	
ENTIRE AGREEMENT
	 	 	45	 
	35.	 	
LIMITATION OF LIABILITY
	 	 	46	 

Exhibit A-1-Outline and Location of Premises

Exhibit A-2-Location of ATM Equipment

Exhibit A-3-Locations of Tenant’s Signs

Exhibit B-Rules and Regulations

Exhibit C-Payment of Basic Costs and Taxes

Exhibit D-Work Letter

Exhibit E-Additional Provisions

Exhibit F-Commencement Letter

Exhibit G-Parking

Exhibit H-Form of Non Disturbance Agreement

Exhibit I-Tenant’s Sign Plans

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RETAIL LEASE AGREEMENT

     This Office Lease Agreement (the “Lease”), made and entered into on this
the ______day of ______, 2003 (which date shall be the date Landlord and
Tenant execute this Lease following payment of all prepaid Rent and security
deposits required under this Lease as inserted herein by Landlord), between
BALLSTON 4501, L.L.C., a Delaware limited liability company (“Landlord”) and
ALLIANCE BANK CORPORATION, a Virginia banking corporation (“Tenant”).

     W I T N E S S E T H:

     1.     Definitions. The following are definitions of some of the defined
terms used in this Lease. The definition of other defined terms are found
throughout this Lease.

		
	 	        A. “Building” shall mean the office building at 4501 North Fairfax
Drive, County of Arlington, Commonwealth of Virginia.
	 
	 	        B. “Base Rent”: Base Rent will be paid according to the following
schedule, subject to the provisions of Section 5. hereof. For the
purposes of this Section 1.B., “Lease Year” shall mean the twelve (12)
month period commencing on the Rent Commencement Date, and each
successive twelve (12) month period thereafter; provided, however, that
if the Rent Commencement Date is not the first day of a month, then the
second Lease Year shall commence on the first day of the month in which
the first anniversary of the Rent Commencement Date occurs.

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	Monthly Installments
	Period	 	Annual Base Rent	 	of Base Rent
	

	First Lease Year
	 	$	107,392.00	 	 	$	8,949.33	 
	

	Second Lease Year
	 	$	110,613.76	 	 	$	9,217.81	 
	

	Third Lease Year
	 	$	113,932.17	 	 	$	9,494.35	 
	

	Fourth Lease Year
	 	$	117,350.14	 	 	$	9,779.18	 
	

	Fifth Lease Year
	 	$	120,870.64	 	 	$	10,072.55	 
	

	Sixth Lease Year
	 	$	124,496.76	 	 	$	10,374.73	 
	

	Seventh Lease Year
	 	$	128,231.66	 	 	$	10,685.97	 
	

	Eighth Lease Year
	 	$	132,078.61	 	 	$	11,006.55	 
	

	Ninth Lease Year
	 	$	136,040.97	 	 	$	11,336.75	 
	

	Tenth Lease Year
	 	$	140,122.20	 	 	$	11,676.85	 
	

The Base Rent due for the first month during the Lease Term (hereinafter
defined) shall be paid by Tenant to Landlord contemporaneously with Tenant’s
execution hereof.

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	 	        C. “Additional Rent”: shall mean Tenant’s Pro Rata Share
(hereinafter defined) of Basic Costs and Taxes and any other sums
(exclusive of Base Rent) that are required to be paid to Landlord by
Tenant hereunder, which sums are deemed to be Additional Rent under this
Lease. Additional Rent and Base Rent are sometimes collectively referred
to herein as “Rent.”
	 
	 	        D. “Basic Costs” shall mean all direct and indirect costs and
expenses incurred in connection with the Building as more fully defined
in Exhibit C attached hereto and incorporated herein by reference.
	 
	 	        E. “Security Deposit” shall mean the sum of Eight Thousand Nine
Hundred Forty-Nine and 33/100 Dollars ($8,949.33). The Security Deposit
shall be paid by Tenant to Landlord contemporaneously with Tenant’s
execution hereof.
	 
	 	        F. “Commencement Date”, “Rent Commencement Date”, “Lease Term” and
“Termination Date” shall have the meanings set forth below: The “Lease
Term” shall mean the period commencing on the Commencement Date (as
defined in Section 3.A below), continuing through the Rent Commencement
Date (as defined below), and then continuing after the Rent Commencement
Date for one hundred twenty (120) full calendar months. The “Rent
Commencement Date” shall mean that date which is the earlier to occur of
(a) the one hundred eightieth (180th) day after Commencement Date (the
“Target Opening Date”), (b) the date Tenant commences business operations
in the Premises, and (c) June 1, 2003 (the “Rent Certain Date”). The
“Termination Date” shall, unless sooner terminated as provided herein,
mean the last day of the Lease Term. Notwithstanding the foregoing, if
the Termination Date, as determined herein, does not occur on the last
day of a calendar month, the Lease Term shall be extended by the number
of days necessary to cause the Termination Date to occur on the last day
of the last calendar month of the Lease Term. Tenant shall pay Base Rent
and Additional Rent for such additional days at the same rate payable for
the portion of the last calendar month immediately preceding such
extension. The Commencement Date, Rent Commencement Date, Lease Term
(including any extension by Landlord pursuant to this subsection I.F. and
Termination Date shall be set forth in a Commencement Letter prepared by
Landlord and executed by Tenant in accordance with the provisions of
Section 3.A. hereof.
	 
	 	        G. “Premises” shall mean the ground floor retail space located
within the Building and outlined on Exhibit A to this Lease.
	 
	 	        H. “Approximate Rentable Area in the Premises” shall mean the area
contained within the demising walls of the Premises and any other area
designated for the exclusive use of Tenant plus an allocation of Tenant’s
pro rata share of the square footage of the “Common Areas” and the
“Service Areas” (as defined below). For purposes of the Lease it is
agreed and stipulated by both Landlord and Tenant that the Approximate
Rentable Area in the Premises is three thousand three hundred fifty-six
(3,356)] square feet
located on (a portion of) the ground floor retail area of the
Building, as more particularly designated on Exhibit A. The Approximate
Rentable Area in the Premises as set forth

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	 	above has been measured in
accordance with the 1996 BOMA (Z65.1 1996) (the “BOMA”) standard of
measurement.
	 
	 	        I. The “Approximate Rentable Area in the Building” is one hundred
ninety-one thousand eight hundred eighty-one (191,881) square feet. The
Approximate Rentable Area in the Premises, the Approximate Rentable Area
in the Building as set forth herein have been measured in accordance with
the BOMA standard of measurement and may be revised at Landlord’s
election if Landlord’s architect determines such estimate to be
inaccurate in any material degree (due to expansion, conversion or
elimination of space by an act of Landlord or by casualty or
condemnation) after examination of the final drawings of the Premises and
the Building.
	 
	 	        J. “Tenant’s Pro Rata Share” shall mean: one and seventy-five
one-hundredths percent (1.75%) for Taxes (as defined in Exhibit C), which
is the quotient (expressed as a percentage), derived by dividing the
Approximate Rentable Area in the Premises by the Approximate Rentable
Area in the Building; and one and seventy-five one-hundredths percent
(1.75%) for Basic Costs, which is the quotient (expressed as a
percentage) derived by dividing the Approximate Rentable Area in the
Premises by the Approximate Rentable Area in the Building.
	 
	 	        K. “Permitted Use” shall mean, in accordance with all applicable
zoning and land use requirements, the operation of a retail branch
banking facility in keeping with the image of the Building and other
first-class office buildings in Ballston, Virginia and for no other use
or purpose whatsoever other than general office purposes as an incidental
use in connection with the operation of Tenant’s banking business.
	 
	 	        L. [Reserved]
	 
	 	        M. “Guarantor(s)”: not applicable.
	 
	 	        N. “Broker” shall mean Transwestern Commercial Services.
	 
	 	        O. “Building Manager” shall mean Transwestern Commercial Services or
such other company as Landlord shall designate from time to time.
	 
	 	        P. “Building Standard” shall mean the type, brand, quality and/or
quantity of materials Landlord designates from time-to-time to be the
minimum quality and/or quantity to be used in the Building or the
exclusive type, grade, quality and/or quantity of material to be used in
the Building.
	 
	 	        Q. “Business Day(s)” shall mean Mondays through Fridays exclusive of
the normal business holidays of New Year’s Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day and other
holidays observed by the federal government (“Holidays”). Landlord, from
time to time during the Lease Term, shall have
the right to designate additional Holidays, provided such additional
Holidays are commonly recognized by other office buildings in the area
where the Building is located.

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	 	        R. “Common Areas” shall mean those areas located within the Building
or on the Property used for corridors, elevator foyers, mail rooms,
restrooms, mechanical rooms, elevator mechanical rooms, property
management office, janitorial closets, electrical and telephone closets,
vending areas, and lobby areas (whether at ground level or otherwise),
entrances, exits, sidewalks, skywalks, tunnels, driveways, parking areas
and parking facilities and landscaped areas and other similar facilities
provided for the common use or benefit of tenants generally and/or the
public.
	 
	 	        S. “Default Rate” shall mean the Prime Rate plus five percent (5%).
	 
	 	        T. “Maximum Rate” shall mean the highest rate of interest from
time-to-time permitted under applicable federal and state law.
	 
	 	        U. “Normal Business Hours” for the Building shall mean 8:00 a.m. to
6:00 p.m. Mondays through Fridays, and 9:00 a.m. to 1:00 p.m. on
Saturdays, exclusive of Holidays.
	 
	 	        V. “Prime Rate” shall mean the per annum interest rate announced by
and quoted in the Wall Street Journal from time-to-time as the prime or
base rate.
	 
	 	        W. “Property” shall mean the Building and the parcel(s) of land on
which it is located (the “Land”), other improvements located on such land
(including, without limitation, the parking facility located thereon and
thereunder (the “Parking Facility”)), adjacent parcels of land that
Landlord operates jointly with the Building, and other buildings and
improvements located on such adjacent parcels of land.
	 
	 	        X. “Service Areas” shall mean those areas within the Building used
for stairs, elevator shafts, flues, vents, stacks, pipe shafts and other
vertical penetrations (but shall not include any such areas for the
exclusive use of a particular tenant).
	 
	 	        Y. “Notice Addresses” shall mean the following addresses for Tenant
and Landlord, respectively:

	 	 	 
	Tenant:	 	
Alliance Bank Corporation

14280 Park Meadow Drive, Suite 350

Chantilly, Virginia 20151

Attn: Paul M. Harbolick, Jr.,

Executive Vice President
	 
	with a copy of default notices only
to:	 	
Vanderpool, Frostick & Nishanian, P.C.

9200 Church Street, Suite 400

Manassas, Virginia 20110

Attn: Richard Nishanian, Esq.

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	Landlord:	 	
Transwestern Commercial Services

4401 Ford Avenue, Suite 308

Alexandria, Virginia 22302

Attn: Maribeth M. Perucci
	 
	with a copy to:	 	
Transwestern Investment Company

150 North Wacker Drive, Suite 800

Chicago, Illinois 60606

Attn: Joseph P. Concepcion
	 
	with a copy to:	 	
Wendy Freyer, Esq.

Drane & Freyer

150 North Wacker Drive

6th Floor

Chicago, Illinois 60606
	 
	Payments of Rent only shall be
made payable to the order of:	 	
Ballston 4501, L.L.C.

at the following address:
	 
	 	 	
c/o Transwestern Commercial Services

P.O. Box 343030

Bethesda, Maryland 20827-3030

or such other name and address as Landlord shall, from time to time, designate.

		
	 	        Z. ”Permitted Storage Percentage” shall mean five percent (5%).
	 
	 	        AA. ”Office Specific Charges” shall mean all expenses attributable
solely to the office space in the Building from time to time, including,
but not limited to, expenses relating to cleaning contracts and supplies.
	 
	 	        BB. Tenant’s Advertised Name:  Alliance Bank

  
     
2.     Lease Grant. Subject to and upon the terms herein set forth, Landlord
leases to Tenant and Tenant leases from Landlord the Premises together with the
right, in common with others, to use the Common Areas.

  
     3.     Adjustment of Commencement Date/Possession.

		
	 	        A. The “Commencement Date” shall be the next business day following
execution of this Lease by Landlord and Tenant and payment by Tenant of
all prepaid Rent and security deposits required under this Lease.
Possession of the Premises shall be delivered to Tenant by Landlord on
the Commencement Date. After Landlord delivers the
Premises to Tenant, Tenant shall proceed with due dispatch and
diligence to stock and fixture the Premises, and to construct (in
accordance with Section 8) any additional initial

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	 	Leasehold Improvements
which may be necessary, to open the Premises for business with the public
on or before the Target Opening Date. Promptly after the determination
of the Rent Commencement Date, Landlord and Tenant shall enter into a
letter agreement (the “Commencement Letter”) on the form attached hereto
as Exhibit F setting forth the Commencement Date, the Rent Commencement
Date, the Termination Date and any other dates that are affected by the
Rent Commencement Date.
	 
	 	        B. By taking possession of the Premises, Tenant is deemed to have
accepted the Premises and agreed that the Premises is in good order and
satisfactory condition, with no representation or warranty by Landlord as
to the condition of the Premises or the Building or suitability thereof
for Tenant’s use. Notwithstanding anything contained in this Lease to
the contrary, Landlord represents that, to the best of its knowledge, the
roof, exterior walls, heating and air conditioning system, plumbing,
electrical and all other structural components of the Building are in
working order as of the date of hereof.
	 
	 	        C. [Reserved].
	 
	 	        D. If Tenant takes possession of the Premises prior to the
Commencement Date, such possession shall be subject to all the terms and
conditions of the Lease and Tenant shall pay Base Rent and Additional
Rent to Landlord for each day of occupancy prior to the Commencement
Date. Notwithstanding the foregoing, if Tenant, with Landlord’s prior
approval, takes possession of the Premises prior to the Commencement Date
for the sole purpose of performing any Landlord-approved improvements
therein or installing furniture, equipment or other personal property of
Tenant, such possession shall be subject to all of the terms and
conditions of the Lease, except that Tenant shall not be required to pay
Rent with respect to the period of time prior to the Commencement Date
during which Tenant performs such work. Tenant shall, however, be liable
for the cost of any services (e.g. electricity, HVAC, freight elevators)
that are provided to Tenant or the Premises during the period of Tenant’s
possession prior to the Commencement Date. Nothing herein shall be
construed as granting Tenant the right to take possession of the Premises
prior to the Commencement Date, whether for construction, fixturing or
any other purpose, without the prior consent of Landlord.

  
     4.     Use

		
	 	        A. The Premises shall be used solely for the Permitted Use and for
no other purpose. In connection with its Permitted Use, Tenant shall
have the right to install, maintain, and operate an automated teller
machine (an “ATM”), together with related equipment, accessories and
identifying signage (collectively, the “ATM Equipment”), in the location
within the Premises shown on Exhibit A-2. Tenant shall provide all
security measures that are necessary or appropriate for the ATM Equipment
(as reasonably determined by Landlord), including, without limitation,
mirrors, surveillance cameras, door locks, adequate lighting, exterior
visibility, card entry systems, and warning signage. Landlord shall have
no responsibility for the ATM Equipment, and shall not be liable for
any damage or disruption to same however caused, including, without
limitation, due to a disruption in electrical or telecommunication
service unless due to the negligence or willful

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	 	misconduct of the
Landlord subject to the limitations set forth in Section 35 below.
Tenant shall pay all real, personal property, or other taxes or fees
assessed or imposed on the ATM Equipment. Tenant shall separately
arrange with, and pay directly to, the applicable public or private
utilities as the case may be, for the furnishing, installation, and
maintenance of all telecommunications lines, services, and equipment as
may be required by Tenant in the use of the ATM Equipment. Landlord
makes no representations as to the suitability of the Building or the
Premises for an ATM or whether or not an ATM may be installed therein
under applicable Laws. Tenant agrees to use the ATM Equipment in a
clean, careful, safe, lawful, and proper manner. Tenant acknowledges and
agrees that the Permitted Use of the Premises has been precisely defined
to achieve a first-class retail use compatible with a first-class office
building in the jurisdiction in which the Building is located, as well as
a balanced and diversified group of tenants, merchandise and services at
the Building. It is understood and agreed that Tenant’s covenant to
operate its business in a first-class, appealing and attractive manner is
a material inducement to Landlord to enter into this Lease. In
connection therewith, Tenant shall (i) maintain a decor and physical
layout that is attractive, appealing and consistent with the overall
design and quality of the Building; (ii) comply with applicable health
and safety codes; and (iii) maintain a high standard of cleanliness and
hygiene throughout the Premises and any areas through which Tenant
receives deliveries or disposes of refuse, all to the satisfaction of
Landlord. Accordingly, it is understood and agreed that without
Landlord’s prior written consent, Tenant shall not sell any products,
offer any services or undertake any line of business that will directly
and materially compete with the use of any other tenant at the Building;
it being understood, however, that so long as products, services or lines
of business offered by Tenant in the Premises conform with Tenant’s
Permitted Use of the Premises, Landlord’s consent for the same shall not
be required. Tenant shall not use or occupy the Premises for any
unlawful purpose or in any manner that will violate the certificate of
occupancy for the Premises or the Building or that will constitute waste.
	 
	 	        B. Tenant agrees not to use or permit the use of the Premises for
any purpose which is illegal, dangerous to life, limb or property or
which, in Landlord’s sole judgement, creates a nuisance or which would
increase the cost of insurance coverage with respect to the Building.
Tenant will conduct its business and control its agents, servants,
employees, customers, licensees, and invitees in such a manner as not to
interfere with, annoy or disturb other tenants or Landlord in the
management of the Building and the Property. Tenant will maintain the
Premises in a clean and healthful condition, and comply with all laws,
ordinances, orders, rules and regulations of any governmental entity
(“Laws”) with reference to the use, condition, configuration or occupancy
of the Premises including, without limitation, procurement by Tenant, at
its expense, of all governmental licenses and permits required for the
conduct of Tenant’s business in the Premises. If any such law
ordinances, orders, rules and regulations require an occupancy or use
permit or license for the Premises or the operation of the business
conducted therein, then Tenant shall obtain and keep current such permit
or license at Tenant’s expense and shall promptly deliver a copy thereof
to Landlord. Notwithstanding anything in this Lease to the contrary, use
of the Premises, the Building and the Land is subject to all covenants,
conditions, easements
and restrictions of record. Tenant, within ten (10) days after the
receipt thereof, shall provide Landlord with copies of any notices it
receives with respect to a violation or

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	 	alleged violation of any such
Laws. Tenant, at its expense, will comply with the rules and regulations
of the Building attached hereto as Exhibit B and such other rules and
regulations adopted and altered by Landlord from time-to-time and will
cause all of its agents, employees, invitees and visitors to do so,
provided such rules do not conflict with, or materially increase Tenant’s
obligations under this Lease. All such changes to rules and regulations
will be reasonable and shall be sent by Landlord to Tenant in writing.
Landlord will use reasonable efforts not to enforce any rule or
regulation in a manner which unreasonably and adversely discriminates
among similarly-situated tenants. In the event of any conflict or
inconsistency between terms and provisions of any such rules and
regulations, as now or hereinafter in effect, and the terms and
provisions of this Lease, the terms and provisions of this Lease shall
prevail.
	 
	 	        C. Throughout the Lease Term, Tenant shall: (a) continuously,
actively and diligently use, occupy and operate its business in the
entire Premises and use the Premises in a first-class and reputable
manner for the Permitted Use; (b) keep the Premises fully staffed with
adequately trained personnel; (c) keep the Premises open for business
from 9:00 a.m. until 2:00 p.m. Monday through Friday (the “Minimum
Hours”), at a minimum; (d) not permit carts of any kind to be stored or
left outside the Premises (including, without limitation, on the
sidewalks or any public or common area of or adjacent to the Building or
the Land) longer than reasonably necessary to unload their contents; (e)
not cause or permit any objectionable odors to emanate from the Premises,
the loading dock, the dumpster area or any other part of the Building and
use best efforts to prevent any odors whatsoever from emanating
therefrom; and (f) abide by and observe the terms, rules and regulations
specified in this Lease (including, without limitation, those of Section
4.A.). Landlord specifically reserves the right to restrict the loading
and curbside pickup from the Premises as required by governmental
authorities or as Landlord may deem reasonably necessary to alleviate
traffic or congestion or otherwise. Tenant acknowledges that the
Building is a first-class office building and that the aforesaid
obligations are established to enhance the business activity and
patronage of all tenants in the Building, and that Tenant’s failure to
comply with such obligations would cause Landlord damages which might be
difficult to measure accurately. Tenant shall warehouse, store and stock
in the Premises only such goods, wares and merchandise as Tenant intends
to offer for retail sale at, in, from or upon the Premises. Tenant shall
not use more than the Permitted Storage Percentage of the number of
square feet of rentable area in the Premises for such warehouse, storage
or stock purposes. In addition, Tenant shall not use any portion of the
Premises located within five (5) feet of any storefront/display window
for such warehouse, storage or stock purposes. Tenant shall use for
office, clerical or other nonselling purposes only such space in the
Premises as is from time to time reasonably required for Tenant’s
business in the Premises.
	 
	 	        D. Tenant’s advertised name, as used by Tenant for identification of
the business operated in the Premises as of the date hereof, shall be
Tenant’s Advertised Name. Tenant shall not change such advertised name
at any time during the Lease Term without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, giving due
regard for the quality and character of the Building and the other
tenants thereof.
Tenant represents and warrants that as of the date hereof Tenant has
full legal authority to use Tenant’s Advertised Name and that Tenant’s
Advertised Name does not violate any

8

 

		
	 	law or the rights of any third
party. Notwithstanding anything contained in this paragraph to the
contrary, in the event Tenant merges with or is acquired by another
banking or financial institution which results in change of trade name
for Tenant’s business in the Premises, such change in trade name (and
Tenant’s Advertised Name) shall be permitted without the consent of
Landlord. Throughout the Lease Term, Tenant shall take all actions
reasonably necessary to protect its legal authority to use Tenant’s
Advertised Name.
	 
	 	        E. For the purpose of maintaining a uniform and consistent quality
of merchandise and merchandising, and for the mutual protection of all
retail tenants of the Building, Tenant agrees that Tenant shall obtain
Landlord’s prior written consent (which shall not be unreasonably
withheld, conditioned or delayed) before holding any events (whether
special or in the ordinary course of Tenant’s business) which will or may
result in crowds, lines, excessive pedestrian or vehicular traffic, noise
or other occurrence which is not in conformity with Tenant’s normal and
customary day-to-day operations in the Premises permitted by the
Permitted Use. Tenant shall not use any space outside the Premises for
display, sale or any other similar undertaking, nor use any advertising
medium inside the Premises which may be heard outside the Premises.
Tenant shall not allow its employees to loiter in or about the Common
Areas of the Building or on the plaza areas, sidewalks, streets, or
alleys adjacent to the Building or the Land.
	 
	 	        F. Notwithstanding anything to the contrary contained in this Lease,
Tenant shall require all trucks or other vehicles serving Tenant to use
the service areas and/or loading docks provided by Landlord, if any.
Tenant shall confine all deliveries to travel areas designated by
Landlord from time to time. Tenant shall cause all such vehicles serving
Tenant to be promptly loaded or unloaded (and only between the hours of
7:00 p.m. and 8:00 a.m.) and removed from such area, and Tenant shall use
its best efforts to see that all such trucks or other vehicles owned,
operated by or on behalf of, or serving, Tenant shall comply in all
respects with all Laws and any applicable rules and regulations governing
use of truck or vehicle access, parking, loading and unloading
facilities, and permissible hours and places therefor, as the same may be
from time to time established, modified or amended by Landlord as
aforesaid. Tenant must coordinate with Landlord to gain access to the
loading docks and, if necessary, reserve the freight elevator.
Immediately after use of such service area is complete, Tenant shall
remove any debris and clean such area to its prior condition. Tenant
shall not unreasonably impede (a) the use of such area by other tenants,
or (b) traffic or parking near such loading area or the Building.
	 
	 	        G. Tenant shall comply, at its sole cost and expense, with all
orders, requirements and conditions (collectively, “Regulations”) now or
hereafter imposed by virtue of any law, or, reasonably required by
Landlord, regarding the collection, sorting, separation, or recycling of
waste products, garbage, refuse and trash (collectively, “Waste”),
including, but not limited to, the separation of Waste into receptacles
reasonably approved by Landlord and the removal of such receptacles in
accordance with any collection schedules prescribed by such Regulations.
Landlord reserves the right (a) to refuse to accept from Tenant any Waste
that is not prepared for collection in accordance
with any such Regulations, (b) to require Tenant to arrange for
Waste collection at Tenant’s sole cost and expense, utilizing a
contractor reasonably satisfactory to Landlord, and (c) to

9

 

		
	 	require Tenant
to pay all costs, expenses, fines, penalties, or damages that may be
imposed on Landlord or Tenant by reason of Tenant’s failure to comply
with any such Regulations. If Tenant is unable to comply with Landlord’s
standard procedures regarding the internal collection, sorting,
separation and recycling of Waste, then, upon reasonable advance notice
to Landlord, Landlord shall use reasonable efforts to arrange for
alternative procedures for Tenant, provided Tenant shall pay Landlord all
additional costs incurred by Landlord with respect thereto.
	 
	 	        H. All telephone and telecommunications services desired by Tenant
shall be ordered and utilized at the sole expense of Tenant. Unless
Landlord otherwise requests or consents in writing, all of Tenant’s
telecommunications equipment shall be and remain solely in the Premises
and the telephone closet(s) designated by Landlord. Landlord shall have
no responsibility for the maintenance of Tenant’s telecommunications
equipment (including wiring) nor for any wiring or other infrastructure
to which Tenant’s telecommunications equipment may be connected
(collectively, “Telecomm Equipment”). Landlord shall have the right,
upon reasonable prior notice to Tenant (except in the event of an
emergency), to interrupt or turn off telecommunications facilities as
necessary in connection with repairs to the Building or installation of
telecommunications equipment for other tenants. Except as otherwise
provided in Paragraph IV of Exhibit E, Tenant shall not utilize any
wireless communications equipment (other than usual and customary
cellular telephones), including antennae and satellite receiver dishes,
at the Premises or the Building, without Landlord’s prior written
consent, which may be granted or withheld in Landlord’s sole and absolute
discretion.

  
     5.     Base Rent.

		
	 	        A. Tenant covenants and agrees to pay to Landlord during the Lease
Term, without any setoff or deduction except as otherwise expressly
provided herein, the full amount of all Base Rent and Additional Rent due
hereunder and the full amount of all such other sums of money as shall
become due under this Lease (including, without limitation, any charges
for any other services, goods or materials furnished by Landlord at
Tenant’s request), all of which hereinafter may be collectively called
“Rent.” In addition Tenant shall pay and be liable for, as Additional
Rent, all rent, sales and use taxes or other similar taxes, if any,
levied or imposed by any city, state, county or other governmental body
having authority, such payments to be in addition to all other payments
required to be paid to Landlord by Tenant under the terms and conditions
of this Lease. Any such payments shall be paid concurrently with the
payments of the Rent on which the tax is based. The Base Rent and
Additional Rent for each calendar year or portion thereof during the
Lease Term, shall be due and payable in advance in monthly installments
on the first day of each calendar month during the Lease Term and any
extensions or renewals hereof, and Tenant hereby agrees to pay such Base
Rent and Additional Rent to Landlord without demand. If the Lease Term
commences on a day other than the first day of a month or terminates on a
day other than the last day of a month, then the installments of
Base Rent and Additional Rent for such month or months shall be prorated,
based on the number of days in such month. No payment by Tenant or
receipt or acceptance by Landlord of a lesser amount than the correct
installment of Rent due under this Lease shall be deemed to be other than
a

10

 

		
	 	payment on account of the earliest Rent due hereunder, nor shall any
endorsement or statement on any check or any letter accompanying any
check or payment be deemed an accord and satisfaction, and Landlord may
accept such check or payment without prejudice to Landlord’s right to
recover the balance or pursue any other available remedy. The acceptance
by Landlord of an installment of Rent on a date after the due date of
such payment shall not be construed to be a waiver of Landlord’s right to
declare a default for any other late payment. All amounts received by
Landlord from Tenant hereunder shall be applied first to the earliest
accrued and unpaid Rent then outstanding. Tenant’s covenant to pay Rent
shall be independent of every other covenant set forth in this Lease.
	 
	 	        B. To the extent allowed by law, all installments of Rent not paid
when due shall bear interest at the Default Rate from the date due until
paid. In addition, if Tenant fails to pay any installment of Base Rent
or Additional Rent or any other item of Rent when due and payable
hereunder, a “Late Charge” equal to five percent (5%) of such unpaid
amount will be due and payable immediately by Tenant to Landlord.
	 
	 	        C. The Additional Rent payable hereunder shall be adjusted from
time-to-time in accordance with the provisions of Exhibit C attached
hereto and incorporated herein for all purposes.

  
  
   6.     Security Deposit.

		
	 	        A. The Security Deposit shall be held by Landlord without liability
for interest and as security for the performance by Tenant of Tenant’s
covenants and obligations under this Lease including but not limited to
those set forth in Section 10 hereof, it being expressly understood that
the Security Deposit shall not be considered an advance payment of Rent
or a measure of Tenant’s liability for damages in case of default by
Tenant. Landlord shall have no fiduciary responsibilities or trust
obligations whatsoever with regard to the Security Deposit and shall not
assume the duties of a trustee for the Security Deposit. Landlord may,
from time-to-time, without prejudice to any other remedy and without
waiving such default, use the Security Deposit to the extent necessary to
cure or attempt to cure, in whole or in part, any default of Tenant
hereunder. Following any such application of the Security Deposit,
Tenant shall pay to Landlord on demand the amount so applied in order to
restore the Security Deposit to its original amount. If Tenant is not in
default at the termination of this Lease, the balance of the Security
Deposit remaining after any such application shall be returned by
Landlord to Tenant within thirty (30) days thereafter. If Landlord
transfers its interest in the Premises during the term of this Lease,
Landlord shall assign the Security Deposit to the transferee and upon
transfer shall have no further liability for the return of such
transferred Security Deposit. Tenant agrees to look solely to such
transferee or assignee or successor thereof for the return of the
Security Deposit. Landlord and its successors and assigns shall not be bound
by any actual or attempted assignment or encumbrance of the Security
Deposit by Tenant. Landlord shall not be required to keep the Security
Deposit separate from its other accounts.
	 
	 	        B. Tenant shall have the right to deliver to Landlord a clean,
unconditional, irrevocable letter of credit in substitution for the cash
security deposit, subject to the

11

 

		
	 	following terms and conditions. Such
letter of credit shall be (1) in form and substance satisfactory to
Landlord in its sole discretion (with the following criteria at a
minimum); (2) at all times in the stated face amount of not less than the
Security Deposit (as defined in Section 1.E), and shall on its face state
that multiple and partial draws are permitted and either (a) that partial
draws will not cause a corresponding reduction in the stated face amount
of the letter of credit or (b) that, within five (5) business days after
any such partial draw, the issuer will notify Landlord in writing that
the letter of credit will not be reinstated to its full amount in which
event Landlord shall have the right to immediately draw on the remainder
of the letter of credit (it being understood that the total security
deposit on hand, whether in cash or letter of credit form, shall at all
times be not less than the total Security Deposit as so defined); (3)
issued by a commercial bank acceptable to Landlord from time to time and
located in the Northern Virginia/Washington, D.C. metropolitan area for
the account of Tenant, and its permitted successors and assigns under
this Lease; (4) made payable to, and expressly transferable and
assignable one or more times at no charge by, the owner from time to time
of the Building or its lender (which transfer/assignment shall be
conditioned only upon the execution of a reasonable and customary written
document in connection therewith), whether or not the original account
party of the letter of credit continues to be the tenant under this Lease
by virtue of a change in name or structure, merger, assignment, transfer
or otherwise; (5) payable at sight upon presentment to a Northern
Virginia/Washington, D.C. metropolitan area branch of the issuer of a
simple sight draft stating only Landlord is permitted to draw on the
letter of credit under the terms of the Lease and setting forth the
amount that Landlord is drawing; (6) of a term not less than one year,
and shall on its face state that the same shall be renewed automatically,
without the need for any further written notice or amendment, for
successive minimum one-year periods, unless the issuer notifies Landlord
in writing, at least sixty (60) days prior to the expiration date
thereof, that such issuer has elected not to renew the letter of credit
(which will thereafter entitle Landlord to draw on the letter of credit);
and (7) at least thirty (30) days prior to the then-current expiration
date of such letter of credit, either (a) renewed (or automatically and
unconditionally extended) from time to time through the ninetieth (90th)
day after the expiration of the Lease Term, or (b) replaced by Tenant
with cash, or another letter of credit meeting the requirements of this
Section, in the full amount of the Security Deposit. Tenant shall
cooperate with Landlord to effect any modifications, transfers or
replacements of the letter of credit requested by Landlord in order to
assure that Landlord is at all times fully secured by a valid letter of
credit that may be drawn upon by Landlord, its successors and assigns.
Notwithstanding anything in this Lease to the contrary, any cure or grace
period set forth in Section 22 shall not apply to any of the foregoing
requirements of the letter of credit, and, specifically, if any of the
aforesaid requirements are not complied with timely, then an immediate
Event of Default shall occur and Landlord shall have the right to
immediately draw upon the letter of credit without notice to Tenant and
apply the proceeds to the Security Deposit. Each letter
of credit shall be issued by a commercial bank that
 has a credit
rating with respect to certificates of deposit, short term deposits or
commercial paper of at least Aa3 (or equivalent) by

12

 

		
	 	Moody’s Investor
Service, Inc., or at least AA- (or equivalent) by Standard & Poor’s
Corporation, and shall be otherwise acceptable to Landlord in its sole
and absolute discretion. If the issuer’s credit rating is reduced below
Aa3 (or equivalent) by Moody’s Investors Service, Inc. or below AA- (or
equivalent) by Standard & Poor’s Corporation, or if the financial
condition of such issuer changes in any other materially adverse way,
then Landlord shall have the right to require that Tenant obtain from a
different issuer a substitute letter of credit that complies in all
respects with the requirements of this Section, and Tenant’s failure to
obtain such substitute letter of credit within ten (10) days following
Landlord’s written demand therefor (with no other notice or cure or grace
period being applicable thereto, notwithstanding anything in this Lease
to the contrary) shall entitle Landlord to immediately draw upon the then
existing letter of credit in whole or in part, without notice to Tenant.
In the event the issuer of any letter of credit held by Landlord is
insolvent or is placed into receivership or conservatorship by the
Federal Deposit Insurance Corporation, or any successor or similar
entity, or if a trustee, receiver or liquidator is appointed for the
issuer, then, effective as of the date of such occurrence, said letter of
credit shall be deemed to not meet the requirements of this Section, and,
within ten (10) days thereof, Tenant shall replace such letter of credit
with other collateral acceptable to Landlord in its sole and absolute
discretion (and Tenant’s failure to do so shall, notwithstanding anything
in this Lease to the contrary, constitute an Event of Default for which
there shall be no notice or grace or cure periods being applicable
thereto other than the aforesaid ten (10) day period). Any failure or
refusal of the issuer to honor the letter of credit shall be at Tenant’s
sole risk and shall not relieve Tenant of its obligations hereunder with
respect to the security deposit.

  
     7.     Services to be Furnished by Landlord.

		
	 	        A. (1) Tenant, at its own expense, shall install (in accordance
with Section 8) a separate sub-meter to measure electricity service to
the Premises from and after the Commencement Date. Tenant shall pay all
charges for such electricity as and when such charges become due and
payable. Tenant shall, at its option, arrange directly with the
applicable utility company for gas and telephone service to the Premises;
however, the installation of any equipment in connection with such gas or
telephone service shall be subject to Section 8 of this Lease. All costs
associated with any such installation and all such service shall be paid
by Tenant directly to the applicable utility company. If any utility
serving all or any portion of the Premises is not separately sub-metered
during any portion of the Lease Term, then, during any such unmetered
portion, Tenant shall pay to Landlord, as Additional Rent, Tenant’s
allocable share of such utility as reasonably determined by Landlord,
within thirty (30) days after Tenant’s receipt of Landlord’s invoice
therefor. With respect to excess usage in the Premises for any such
unmetered utilities (including excess electricity and water usage, if
applicable), the amount to be paid by Tenant on account of such excess
shall be determined in accordance with Landlord’s then current schedule,
which shall reflect Landlord’s cost of providing such service without
a profit increment. Tenant agrees to promptly notify Landlord of
any significant increase in Tenant’s utility usage (including, without
limitation, its electricity and water usage, if applicable). Electrical
power for operation of special electrical equipment or appliances will
not be furnished unless the installation of such electrical equipment or
appliances shall have been approved by Landlord in advance in writing.
If at any time Tenant shall dispute Landlord’s determination of Tenant’s
share of any such unmetered utilities or the amount of any such excess,
Tenant shall pay such disputed amount, and Tenant then shall be

13

 

		
	 	permitted
to install separate sub-meters in the Premises at Tenant’s sole cost and
expense. At any time during the Lease Term, Landlord may, at Tenant’s
expense, install separate sub-meters in the Premises. From and after the
date of the installation of such sub-meters, Tenant shall pay to Landlord
all charges for such utilities consumed in the Premises within thirty
(30) days after Tenant’s receipt of Landlord’s invoice therefor.

		
	 	                (2) Tenant also shall provide and pay for directly any heating,
ventilating and air conditioning (“HVAC”), janitorial (including trash
removal), window-cleaning of the interior side of windows and other
services for the Premises. Nothing herein shall be deemed to waive
Tenant’s obligation to reimburse Landlord for the cost of any excess
services provided in accordance with Section 7.C. Landlord is not
obligated to provide any utility or service except as specifically set
forth in this Lease. Unless approved by Landlord in its reasonable
discretion, taking into consideration system capacity and demand for the
Building, Tenant shall not be permitted to connect any HVAC equipment
serving the Premises to the Building’s heating, ventilating and air
conditioning system (the “Building’s HVAC System”). If Landlord permits
such connection, Tenant shall pay to Landlord, as Additional Rent,
Tenant’s allocable share of such utility, and all costs incurred in
connection with maintaining and repairing those components of the
Building’s HVAC System, if any, which service the Premises, all as
reasonably determined by Landlord.

		
	 	        B. Landlord will cause the common or public areas of the Building to
be operated and maintained in a manner deemed by Landlord to be
appropriate and in the best interests of the Building. Tenant shall
promptly give Landlord written notice of any necessary repair to such
common or public areas. Landlord will have the right to: (a) enter
into, modify and terminate easement and other agreements pertaining to
the use and maintenance of such common or public areas; (b) close any or
all portions of such common or public areas; (c) make or permit changes
or revisions in such common or public areas; (d) construct improvements
in such common or public areas; and (e) do and perform such other acts in
and to such common or public areas as Landlord shall determine to be
advisable. In connection with the foregoing rights, Landlord shall use
reasonable efforts not to materially adversely affect Tenant’s access to
the Premises. Landlord reserves the exclusive right to use the Common
Areas for advertising purposes. Landlord reserves the right at any time
to use the common or public areas adjacent to those portions of the
Building designated by Landlord for the exclusive use of Landlord or any
retail tenant for promotions, exhibits, displays, product shows, the
leasing of kiosks and food facilities, landscaping, decorative items, and
any other use which, in Landlord’s judgment, tends to attract customers
to, or benefits the tenants of, the Building. Tenant shall not conduct
any operations, sales, promotions, advertising or special events outside
the Premises without the prior written consent of Landlord, which consent
shall not be unreasonably withheld or
delayed, but may be conditioned on Tenant’s compliance with
Landlord’s reasonable rules and regulations related to the use of such
areas, including maintaining appropriate insurance coverage.

		
	 	        C. Landlord shall not be obligated to maintain or operate the
Building at times other than Normal Business Hours. If Tenant requires
the operation of the common or public areas of the Building beyond the
Normal Business Hours, then Landlord shall be

14

 

		
	 	reasonable in determining
whether or not to provide the services necessary to operate such areas,
provided Tenant gives Landlord sufficient advance notice of such
requirement. If any common or public areas of the Building are kept open
or services are provided beyond Normal Business Hours as a result of
Tenant’s operation of the Premises beyond such hours, then Tenant shall
pay as Additional Rent due hereunder all additional costs incurred by
Landlord by reason of keeping such facilities open during such extended
hours including, but not limited to, the cost of air-conditioning, heat,
electricity and lighting, cleaning services and the services of an
attendant, which shall reflect Landlord’s cost of providing such service
without a profit increment. To the extent Tenant provides or contracts
for any building services to the Premises directly from the supplier
(which Tenant shall not be permitted to do without Landlord’s prior
written consent, which consent shall not be unreasonably withheld,
conditioned or delayed), Tenant shall enter into and maintain a service
contract therefor with a contractor licensed to do business in the
Commonwealth of Virginia and/or the County of Arlington, Virginia, as the
same may be required by applicable Laws with respect to contractor
licensing, and otherwise reasonably approved by Landlord. From time to
time, at Landlord’s request, Tenant shall provide Landlord with copies of
all such service contracts. Notwithstanding anything above to the
contrary, Tenant shall have access to the Premises, the Building and,
subject to Exhibit G, the Parking Facility twenty-four (24) hours per
day each day of the year (except in the event of an emergency) without
additional charge related to hours of operation. Landlord shall provide
a card key (or similar type of) access system to provide access to the
Building and the Parking Facility at times other than Normal Business
Hours. A reasonable number of access cards or other means of access
shall be provided to Tenant at no cost to Tenant (except that Landlord
may charge Tenant for replacement cards). Tenant shall not permit
anyone, except for Tenant’s employees and authorized guests, to enter the
Building at times other than Normal Business Hours. All persons entering
or exiting the Building at times other than the normal hours of operation
of the Building shall, at Landlord’s discretion, be required to sign in
and out.

		
	 	        D. Tenant shall not cause any trash or other refuse to accumulate
inside the Premises or in any common or public area of the Building, and
shall store and remove same from the Premises in accordance with this
Section. All refuse disposal shall be made at least once a day by
Tenant, at Tenant’s sole expense, along routes and through entryways and
elevators provided for such purposes to dumpsters provided by Landlord,
and only during such hours, and in accordance with such rules and
regulations, as Landlord shall designate from time to time. Tenant
shall, at Tenant’s expense, break down all boxes and other packing
materials to a reasonably appropriate size, store such boxes and
materials and all other refuse in the Premises in tightly fastened
containers or compactors prior to removing same from the Premises and
transporting same at least daily to the Building’s
dumpster which shall be located in an area reasonably accessible to
Tenant. Tenant shall not burn trash. Tenant shall pay its pro rata
share of charges for refuse collection as part of Basic Costs.

		
	 	        E. Except as otherwise expressly provided herein, the failure by
Landlord to any extent to furnish, or the interruption or termination of
services to be provided by Landlord under this Lease in whole or in part,
resulting from adherence to laws, regulations

15

 

		
	 	and administrative orders,
wear, use, repairs, improvements alterations or any causes beyond the
reasonable control of Landlord shall not render Landlord liable in any
respect nor be construed as a constructive eviction of Tenant, nor give
rise to an abatement of Rent, nor relieve Tenant from the obligation to
fulfill any covenant or agreement hereof; provided, however, that if such
failure, interruption or termination is the result of Landlord’s
negligent or willful misconduct, and if Landlord is not proceeding
diligently to correct such failure or inability, and if all or
substantially all of the Premises is rendered unusable by Tenant for a
continuous period of five (5) consecutive business days after Tenant
gives Landlord written notice thereof, and if Tenant does not in fact use
the Premises during such period, then, so long as Tenant is not in
default under this Lease, Tenant shall be entitled as its sole and
exclusive remedy to an abatement of the Base Rent payable hereunder for
the period beginning on the day after such five (5) business day period
ends and continuing until the earlier of the date Tenant resumes use or
occupancy of the Premises or the date use of the Premises is restored to
Tenant. Should any of the equipment or machinery used in the provision
of such services for any cause cease to function properly, Landlord shall
use reasonable diligence to repair such equipment or machinery.

  
     8.     Leasehold Improvements/Tenant’s Property. All fixtures, equipment,
improvements and appurtenances attached to, or built into, the Premises at the
commencement of or during the Lease Term, whether or not by, or at the expense
of, Tenant (“Leasehold Improvements”), shall be and remain a part of the
Premises; shall be the property of Landlord; and shall not be removed by Tenant
except as expressly provided herein. All unattached and moveable partitions,
trade fixtures, moveable equipment or furniture located in the Premises and
acquired by or for the account of Tenant, without expense to Landlord, which
can be removed without structural damage to the Building or Premises, and all
personalty brought into the Premises by Tenant (“Tenant’s Property”) shall be
owned and insured by Tenant. Landlord may, nonetheless, upon the initial
approval of the Plans, and as designated on the Plans at such time by Landlord,
require Tenant to remove any Leasehold Improvements performed (excluding
approved demising walls, partition walls and doors installed by Tenant or on
behalf of Tenant by Landlord as part of the Initial Alterations) by or for the
benefit of Tenant and all electronic, phone and data cabling as are designated
by Landlord (the “Required Removables”) at Tenant’s sole cost. In the event
that Landlord so elects, Tenant shall remove such Required Removables prior to
the expiration or earlier termination of this Lease or Tenant’s right to
possession. In addition to Tenant’s obligation to remove the Required
Removables, Tenant shall repair any damage caused by such removal and perform
such other work as is reasonably necessary to restore the Premises to the
condition existent prior to installation of the Required Removables, reasonable
wear and tear excepted. If Tenant fails to remove any specified Required
Removables or to perform any required
repairs and restoration, Landlord, at Tenant’s sole cost and expense, may
remove the Required Removables (and repair any damage occasioned thereby) and
dispose thereof or deliver the Required Removables to any other place of
business of Tenant, or warehouse the same, and Tenant shall pay the cost of
such removal, repair, delivery, or warehousing of the Required Removables
within five (5) days after demand from Landlord.

16

 

  
     9.     Signage.

		
	 	        A. Landlord shall provide and install, at Tenant’s cost, all letters
or numerals on the exterior of the Premises above or adjacent to Tenant’s
suite entry door in the Building lobby; all such letters and numerals
shall be in the standard graphics for the Building and no others shall be
used or permitted on the Premises without Landlord’s prior written
consent In addition, Landlord will list Tenant’s name in the Building’s
directory, if any, located in the lobby of the Building; provided,
however, Tenant’s listing shall be limited to Tenant’s pro rata share,
which shall be a minimum of three (3) lines.

		
	 	        B. (1) Tenant shall have the right to one (1) backlit sign on each
of the retail sign bands on the exterior south and west facades of the
Building (collectively, the “Signs”); it being understood that (1)
Tenant’s Sign to be installed on the south façade of the Building shall
be installed in the location designated as “Sign #1” on Exhibit A-3
attached hereto and (2) Tenant’s Sign to be installed on the west façade
of the Building shall be installed, at Tenant’s option, in one of the
alternative locations designated as “Sign #2 Option A”, Sign #2 Option B”
or “Sign #2 Option C”. Landlord will consider relocating the existing
tree in the Building’s concrete planter box in front of Sign #2 Option B
to the front of Sign #2 Option C, with due regard given to the costs and
feasibility associated with such relocation, including without
limitation, the cost of relocating utility lines serving such planter
box. Each of such Signs shall display Tenant’s Advertised Name.
Tenant’s rights to install such Signs shall be subject to the following
conditions: (a) the installation and operation of such Signs shall be
subject to Tenant’s obtaining all necessary government,
quasi-governmental, lender, community and other permits, approvals and
consent (and tenant shall bear all risk of not obtaining same); (b) the
size, materials, color, design, weight, lettering, logo, exact location
and other aspects of such Sign shall be acceptable to Landlord in its
sole discretion; (c) such Signs and their installation shall be in
accordance with all legal requirements and Landlord’s rules and
regulations; (d) all costs related to such Signs and their installation
(including the cost of obtaining all necessary permits and approvals)
shall be paid by Tenant subject to the application of the Allowance (as
defined in Exhibit D); and (e) Landlord shall have the right to remove
such signs at the expiration or earlier termination of the Lease Term at
Tenant’s expense. The Signs shall be the only manner of identifying
Tenant on the exterior of the Building. Throughout the Lease Term, such
Signs shall be maintained in a first-class condition and repair at
Tenant’s sole expense. If an Event of Default occurs and Landlord
retakes possession of the Premises or terminates this Lease, at
Landlord’s option, Landlord, at Tenant’s sole expense, may remove the
Signs and restore the areas in which such Signs, were installed to the
condition immediately prior to the installation of such signs, at which
time Tenant’s signage rights pursuant to this Section 9.B. shall
lapse and be of no further force or effect. At the expiration or earlier
termination of the Lease Term, or at such time, if any, that this Lease
has been terminated, or, except in connection with a Permitted Transfer
(as hereinafter defined), Tenant has subleased or assigned all or any
portion of the Premises, or if Tenant is not in occupancy of the
Premises, then Landlord shall have the right to immediately remove, at
Tenant’s expense, the Signs and to restore the areas on which the Signs
were installed to its condition immediately prior to the installation
thereof.

17

 

		
	 	                (2) Notwithstanding the foregoing provisions contained herein to the
contrary, Landlord hereby approves of Tenant’s initial signage as set
forth in Exhibit I.

  
     10.     Repairs and Alterations by Tenant.

		
	 	        A. (1) Except to the extent such obligations are imposed upon
Landlord hereunder, Tenant shall, at its sole cost and expense, maintain
the Premises in good order, condition and repair throughout the entire
Lease Term, ordinary wear and tear excepted. Tenant agrees to keep the
areas visible from outside the Premises in a neat, clean and attractive
condition at all times. Tenant shall be responsible for all repairs,
replacements and alterations in and to the Premises, Building and
Property and the facilities and systems thereof, the need for which
arises out of (a) Tenant’s use or occupancy of the Premises, (b) the
installation, removal, use or operation of Tenant’s Property (as defined
in Section 8. above), (c) the moving of Tenant’s Property into or out of
the Building, or (d) the act, omission, misuse or negligence of Tenant,
its agents, contractors, employees or invitees. All such repairs,
replacements or alterations shall be performed in accordance with Section
10.B. below and the rules, policies and procedures reasonably enacted by
Landlord from time to time for the performance of work in the Building.
If Tenant fails to maintain the Premises in good order, condition and
repair, Landlord shall give Tenant notice to perform such acts as are
reasonably required to so maintain the Premises. If Tenant fails to
promptly commence such work and diligently pursue it to its completion,
then Landlord may, at is option, make such repairs, and Tenant shall pay
the cost thereof to Landlord on demand as Additional Rent, together with
an administration charge in an amount equal to ten percent (10%) of the
cost of such repairs. Landlord shall, at its expense (except as included
in Basic Costs), keep and maintain in good repair and working order and
make all repairs to and perform necessary maintenance upon: (a) all
structural elements of the Building; and (b) all mechanical, electrical
and plumbing systems that serve the Building in general; and (c) the
Building facilities common to all tenants including but not limited to,
the ceilings, walls and floors in the Common Areas.

		
	 	                (2) Without limiting the generality of the foregoing, Tenant, at
Tenant’s sole cost and expense, shall promptly make all repairs and
replacements to (a) any pipes, lines, ducts, wires or conduits servicing
exclusively the Premises, (b) any heating, air conditioning, electrical,
ventilating or plumbing equipment servicing exclusively the Premises
(including, without limitation, the HVAC Unit (as defined below)), (c)
all glass, window panes and doors, (d) any other mechanical systems
servicing exclusively the
Premises, and (e) Tenant’s signs and any portions of the Building to
which such signs are affixed. Tenant shall be responsible, at Tenant’s
sole expense, for providing all janitorial (including, without
limitation, trash removal) and cleaning and pest and termite control
services for the Premises in accordance with any rules and regulations
established by Landlord in connection therewith. All such services shall
be provided in accordance with standards customarily maintained for
similar first class properties, and Tenant shall maintain, at Tenant’s
sole cost and expense, service contracts therefor. Landlord shall have
the right to inspect the Premises, and if Landlord determines that the
Premises are not being kept clean, or are not repaired or maintained, in
a first-class manner, then Tenant shall take all measures required by
Landlord for the proper cleanliness, repair and maintenance of the

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	 	Premises, including, without limitation, the use of an exterminating firm
designated from time to time by Landlord. Tenant shall install in the
Premises, at Tenant’s sole cost and expense, any heating, ventilation and
air-conditioning equipment and systems (the “HVAC Unit”) required by
Landlord to adequately serve the Premises and the business therein. The
HVAC Unit shall be of a type, size and location that is acceptable to
Landlord in its sole and absolute discretion in all respects. The HVAC
Unit shall not produce unreasonable noise and shall be adequate to
ventilate the Premises and adjacent areas of the Building to Landlord’s
satisfaction. Without limiting the generality of the foregoing, Tenant
shall maintain, at Tenant’s sole cost and expense, a maintenance contract
on the HVAC Unit in or serving the Premises. Such contract shall be with
a contractor licensed to do business in the Commonwealth of Virginia
and/or the County of Arlington, Virginia, as the same may be required by
applicable Laws with respect to contractor licensing and reasonably
approved by Landlord, and shall cover all parts and labor. From time to
time, at Landlord’s request, Tenant shall provide Landlord with copies of
all maintenance and service contracts and service order tickets. In
addition, Landlord reserves the right to establish a regular inspection
and maintenance program for all equipment maintained by Tenant and to
provide all necessary or appropriate maintenance and repairs at Tenant’s
expense. If the HVAC Unit serving the Premises also serves other tenants
at the Building, then Tenant shall coordinate its responsibilities
hereunder with such other tenants unless Landlord, at its sole option,
shall elect to maintain such HVAC Unit and allocate any costs
contemplated by this Section among all tenants serviced by or benefiting
from the service of the HVAC Unit. Tenant shall operate the HVAC Unit so
as to adequately heat or cool the Premises for Tenant’s use of the
Premises, and to maintain during Normal Business Hours temperatures in
the Premises consistent with temperatures in the Common Areas of the
Building so as not to cause any change in temperature in such Common
Areas. Tenant shall not paint or decorate any part of the exterior of
the Premises or decorate or paint any part of the interior of the
Premises visible from the exterior thereof, without first obtaining
Landlord’s prior written consent.

		
	 	        (3) Subject to Landlord’s rights as specified in Section 4.C. and
this Section 10.A.3. Tenant shall maintain displays of merchandise in
the display windows in the Premises, if any, and keep such display
windows and any illuminated store signs lighted during Normal Business
Hours and such additional hours Tenant operates its business in the
Premises. Tenant shall keep security lights on in the Premises during
other hours as may be required by Landlord from time to time. Any show
window displays shall be clean and of an aesthetic and dignified type, in
keeping with the high standards of the
Building. Landlord shall at all times have the right to cause
Tenant to remove any show window displays which, in Landlord’s sole
discretion, are not in keeping with the standards of the Building.
Tenant shall wash the interior and exterior of Tenant’s display windows,
if any, at such times as Landlord may reasonably determine at a minimum.
Tenant shall keep the inside and outside of its storefront, walkways
adjacent to the Premises, and glass in the doors and windows of the
Premises, clean and in good repair, promptly replacing any glass that is
cracked or broken. Tenant will not place or maintain any articles of any
kind against any glass in the doors and windows of the Premises, in the
vestibule or entry of the Premises, on the walkways adjacent thereto or
elsewhere on the exterior thereof.

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	 	        B.    (1) With the exception of the Initial Alterations as permitted by
Exhibit D of this Lease, Tenant shall not make or allow to be made any
further alterations, additions or improvements to the Premises, without
first obtaining the written consent of Landlord in each such instance,
which consent may be refused or given on such conditions as Landlord may
elect in Landlord’s sole and absolute discretion with respect to
structural alterations, additions, or improvements and those
non-structural alterations, additions or improvements which are visible
from the exterior of the Premises or for which a building permit is
required, and which consent shall not be unreasonably withheld with
respect to all other non-structural alterations, additions or
improvements. Structural alterations, additions and improvements shall
be deemed to include, without limitation, any alteration, addition or
improvement that will or may necessitate any changes, replacements or
additions to the fire protection, water, sewer, electrical, mechanical,
plumbing or HVAC systems of the Premises or the Building (collectively,
the “Building Systems”) or to the walls, ceilings, partitions, columns or
floor. Notwithstanding anything contained in this Lease to the contrary,
Landlord’s consent shall not be required for any alterations, additions
or improvements that (a) cost less than twenty thousand and 00/100
dollars ($20,000) per project or series of related projects (as
reasonably determined by Landlord), such as painting, carpeting and
hanging pictures, (b) are not visible from and do not affect the exterior
of the Building, and (c) do not affect the structural integrity or safety
of the Building, or the Building Systems, provided that such alterations,
additions or improvements are installed in accordance with all legal and
insurance requirements and provided further that Tenant provides
Landlord, for informational purposes copies of all plans and
specifications (if any) relating to such alterations, additions or
improvements or if no plans and specifications have been prepared,
written notice prior to commencement of such construction.

		
	 	
              
                
        (2) Prior to commencing any such alteration, addition or improvement
work that requires Landlord’s consent and, as a condition to obtaining
Landlord’s consent, Tenant must furnish Landlord with plans and
specifications reasonably acceptable to Landlord; names and addresses of
contractors reasonably acceptable to Landlord; copies of contracts;
necessary permits and approvals; evidence of contractor’s and
subcontractor’s insurance in accordance with Section 15. hereof; and a
payment bond or other security, all in form and amount reasonably
satisfactory to Landlord. Tenant shall be responsible for insuring that
all such persons procure and maintain insurance coverage against such
risks, in such amounts and with such companies as Landlord may require,
including, but not limited to, Builder’s Risk and Worker’s Compensation
insurance. All such improvements,
alterations or additions shall be constructed in a good and
workmanlike manner using Building Standard materials or other new
materials of equal or greater quality. Landlord, to the extent
reasonably necessary to avoid any disruption to the tenants and occupants
of the Building, shall have the right to designate the time when any such
alterations, additions and improvements may be performed and to otherwise
designate reasonable rules, regulations and procedures for the
performance of work in the Building. Upon completion, Tenant shall
furnish “as-built” plans, contractor’s affidavits and full and final
waivers of lien and receipted bills covering all labor and materials.
All improvements, alterations and additions shall comply with the
insurance requirements, codes, ordinances, laws and regulations,
including without limitation, the Americans with Disabilities Act.
Tenant shall

20

 

		
	 	reimburse Landlord, as Additional Rent, within thirty (30)
days following Tenant’s receipt of Landlord’s demand (together with
reasonable documentation in support thereof) for all sums, if any,
expended by Landlord for third party examination of the architectural,
mechanical, electrical and plumbing plans for any alterations, additions
or improvements. In addition, if Landlord so requests, Landlord shall be
entitled to oversee the construction of any alterations, additions or
improvements that may affect the structure of the Building or any of the
mechanical, electrical, plumbing or life safety systems of the Building.
In the event Landlord elects to oversee such work, Landlord shall be
entitled to receive a fee for such oversight in an amount equal to five
percent (5%) of the cost of such alterations, additions or improvements.
Landlord’s approval of Tenant’s plans and specifications for any work
performed for or on behalf of Tenant shall not be deemed to be
representation by Landlord that such plans and specifications comply with
applicable insurance requirements, building codes, ordinances, laws or
regulations or that the alterations, additions and improvements
constructed in accordance with such plans and specifications will be
adequate for Tenant’s use.

  
     11.     Use of Electrical Services by Tenant. All electricity used by Tenant
in the Premises shall, at Landlord’s option, be paid for by Tenant by a
separate charge or charges billed by the utility company(ies) providing
electrical service and payable by Tenant directly to such utilities
company(ies). Landlord shall have the right at any time and from time-to-time
during the Lease Term to contract for electricity service from such providers
of such services as Landlord shall elect (each being an “Electric Service
Provider”). Tenant shall cooperate with Landlord, and the applicable Electric
Service Provider, at all times and, as reasonably necessary, upon reasonable
advance notice to Tenant except in emergencies, shall allow Landlord and such
Electric Service Provider reasonable access to the Building’s electric lines,
feeders, risers, wiring, and any other machinery within the Premises; provided,
however, Landlord shall use reasonable efforts to minimize interference with
Tenant’s normal business operations in the Premises in connection with any such
access (it being understood that same shall not be deemed to prohibit Landlord
from performing maintenance and repairs during business hours and that Landlord
shall have no obligation to employ overtime or other premium pay labor or other
costs in connection therewith). Landlord shall in no way be liable or
responsible for any loss, damage, or expense that Tenant may sustain or incur
by reason of any change, failure, interference, disruption, or defect in the
supply or character of the electric energy furnished to the Premises, or if the
quantity or character of the electric energy supplied by the Electric Service
Provider is no longer available or suitable for Tenant’s requirements, and no
such change, failure, defect, unavailability, or unsuitability shall
constitute an actual or constructive eviction, in whole or in part, or ,
subject to the provisions of Section 7.E, entitle Tenant to any abatement or
diminution of rent, or relieve Tenant from any of its obligations under the
Lease.

  
     12.     Entry by Landlord. Tenant shall permit Landlord or its agents or
representatives to enter into and upon any part of the Premises to inspect the
same, or to show the Premises to prospective purchasers, mortgagees, tenants
(during the last six (6) months of the Lease Term or earlier in connection with
a potential relocation) or insurers, or to clean or make repairs, alterations,
or additions thereto, including any work that Landlord deems necessary for the
safety, protection or preservation of the Building or any occupants thereof, or
to facilitate repairs, alterations or additions to the Building or any other
tenant’s premises. Except for any entry by Landlord in an

21

 

emergency situation
or to provide normal cleaning and janitorial service, Landlord shall provide
Tenant with reasonable prior notice of any entry into the Premises, which
notice may be given verbally, and shall use reasonable efforts to minimize
interference with Tenant’s normal business operations in the Premises in
connection with any such entry (it being understood that same shall not be
deemed to prohibit Landlord from performing maintenance and repairs during
business hours and that Landlord shall have no obligation to employ overtime or
other premium pay labor or other costs in connection therewith). Landlord
shall have the right to temporarily close the Premises or the Building to
perform repairs, alterations or additions in the Premises or the Building,
provided that Landlord shall use reasonable efforts to perform all such work on
weekends and after Normal Business Hours. Entry by Landlord hereunder shall
not constitute a constructive eviction or entitle Tenant to any abatement or
reduction of Rent by reason thereof.

  
     13.     Assignment and Subletting.

		
	 	        A. Except in connection with a Permitted Transfer (defined in
Section 13.E. below), Tenant shall not assign, sublease, transfer or
encumber any interest in this Lease or allow any third party to use any
portion of the Premises (collectively or individually, a “Transfer”)
without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed. Without limitation, it is
agreed that Landlord’s consent shall not be considered unreasonably
withheld if: (1) the proposed transferee’s financial condition does not
meet the criteria Landlord uses to select Building tenants having similar
leasehold obligations; (2) the proposed transferee’s business is not
suitable for the Building considering the business of the other tenants
and the Building’s prestige, or would result in a violation of another
tenant’s rights; (3) the proposed transferee is a governmental agency or
occupant of the Building; (4) Tenant is in default beyond any applicable
notice and cure period; (5) any portion of the Building or the Premises
would likely become subject to additional or different laws as a
consequence of the proposed Transfer; or (6) the proposed subtenant or
assignee is either (A) an existing tenant of the Building (or any parent,
subsidiary or affiliate thereof) if Landlord has adequate space available
in the Building for a comparable term, or (B) for a period of forty-five
(45) days
following the submission of a written proposal for the lease of
space (and thereafter if a mutual agreement such as a letter of intent is
executed within such period), any other person or entity with which
Landlord is in the process of negotiating for the rental of space in the
Building. Any attempted Transfer in violation of this Section 13, shall,
exercisable in Landlord’s sole and absolute discretion, be voidable.
Consent by Landlord to one or more Transfer(s) shall not operate as a
waiver of Landlord’s rights to approve any subsequent Transfer(s). In no
event shall any Transfer or Permitted Transfer release or relieve Tenant
from any obligation under this Lease or any liability hereunder.

		
	 	        B. If Tenant requests Landlord’s consent to a Transfer, Tenant shall
submit to Landlord financial statements for the proposed transferee, a
complete copy of the proposed assignment, sublease and other information
as Landlord may reasonably request. Landlord shall within ten (10)
business days after Landlord’s receipt of the required information and
documentation either: (1) consent or reasonably refuse consent to the
Transfer in writing; or (2) in the event of a proposed assignment of this
Lease or a proposed sublease of the entire Premises for the entire
remaining term of this Lease, terminate this Lease effective

22

 

		
	 	the first to
occur of ninety (90) days following written notice of such termination or
the date that the proposed Transfer would have come into effect. If
Landlord shall fail to notify Tenant in writing of its decision within
such ten (10) business day period after the later of the date Landlord is
notified in writing of the proposed Transfer or the date Landlord has
received all required information concerning the proposed transferee and
the proposed Transfer, Landlord shall be deemed to have refused to
consent to such Transfer, and to have elected to keep this Lease in full
force and effect. Tenant shall reimburse Landlord for all reasonable,
out-of-pocket, third (3rd) party costs and expenses (not to exceed
$3,000.00 in the aggregate) incurred by Landlord in connection with
Landlord’s review of such requested Transfer or Permitted Transfer.

		
	 	        C. Tenant shall pay to Landlord fifty percent (50%) of all cash and
other consideration which Tenant receives as a result of a Transfer that
is in excess of the sum of (1) the Base Rent and Additional Rent payable
to Landlord hereunder for the portion of the Premises and Lease Term
covered by the Transfer plus (2) the reasonable, out-of-pocket expenses
(excluding any costs attributable to vacancy periods or “downtime”) which
Tenant reasonably incurred in connection with the procurement of such
Transfer, then whether such net excess be in the form of an increased
monthly or annual rental, a lump sum payment, payment for the sale,
transfer or lease of Tenant’s fixtures, leasehold improvements, furniture
and other personal property, or any other form having the effect of a
“disguised” rental payment (and if the subleased or assigned space does
not constitute the entire Premises, the existence of such excess shall be
determined on a pro rata basis), all within fifteen (15) days following
receipt thereof by Tenant. Upon reasonable advance notice to Tenant,
Landlord shall have the right to inspect and audit Tenant’s books and
records relating to any Transfer and expenses incurred by Tenant in
connection therewith. If Tenant is in Monetary Default (defined in
Section 22. below), Landlord may require that all sublease payments be
made directly to Landlord, in which case Tenant shall receive a credit
against rent in the amount of any payments received (less Landlord’s
share of any excess).

		
	 	        D. Except as provided below with respect to a Permitted Transfer, if
Tenant is a corporation, limited liability company, partnership or
similar entity, and the entity which owns or controls a majority of the
voting shares/rights at the time changes for any reason (including but
not limited to a merger, consolidation or reorganization), such change of
ownership or control shall constitute a Transfer. The foregoing shall
not apply so long as Tenant is an entity whose outstanding stock is
listed on a nationally recognized security exchange, or if at least
eighty percent (80%) of its voting stock is owned by another entity, the
voting stock of which is so listed.

		
	 	        E. Tenant may assign its entire interest under this Lease or sublet
the Premises to any entity controlling or controlled by or under common
control with Tenant or to any successor to Tenant by purchase, merger,
consolidation or reorganization (hereinafter, collectively, referred to
as “Permitted Transfer”) without the consent of Landlord, provided: (1)
Tenant is not in default under this Lease; (2) if such proposed
transferee is a successor to Tenant by purchase, said proposed transferee
shall acquire all or substantially all of the stock or assets of Tenant’s
business or, if such proposed transferee shall acquire

23

 

		
	 	all or
substantially all of the stock or assets of Tenant’s business or, if such
proposed transferee is a successor to Tenant by merger, consolidation or
reorganization, the continuing or surviving corporation shall own all or
substantially all of the assets of Tenant; (3) such proposed transferee
shall have a net worth which is at least equal to the greater of Tenant’s
net worth at the date of this Lease or Tenant’s net worth as of the day
prior to the proposed purchase, merger, consolidation or reorganization
as evidenced to Landlord’s reasonable satisfaction; (4) such proposed
transferee operates the business in the Premises for the Permitted Use
and no other purpose; and (5) Tenant shall give Landlord written notice
at least thirty (30) days prior to the effective date of the proposed
purchase, merger, consolidation or reorganization.

		
	 	        F. Tenant agrees that in the event Landlord withholds its consent to
any Transfer contrary to the provisions of this Section 13, Tenant’s sole
remedy shall be to seek an injunction in equity or compel performance by
Landlord to give its consent and Tenant expressly waives any right to
damages in the event of such withholding by Landlord of its consent.

  
     14.     Mechanic’s Liens. Tenant will not permit any mechanic’s liens or
other liens to be placed upon the Premises, the Building, or the Property and
nothing in this Lease shall be deemed or construed in any way as constituting
the consent or request of Landlord, express or implied, by inference or
otherwise, to any person for the performance of any labor or the furnishing of
any materials to the Premises, the Building, or the Property or any part
thereof, nor as giving Tenant any right, power, or authority to contract for or
permit the rendering of any services or the furnishing of any materials that
would give rise to any mechanic’s or other liens against the Premises, the
Building, or the Property. In the event any such lien is attached to the
Premises, the Building, or the Property, then, in addition to any other right
or remedy of Landlord, Landlord may, but shall not be obligated to, discharge
the same. Any amount paid by Landlord for any of the aforesaid purposes
including, but not limited to, reasonable attorneys’ fees, shall be paid by
Tenant to Landlord
promptly on demand as Additional Rent. Tenant shall within ten (10) days
of receiving such notice of lien or claim (a) have such lien or claim released
or (b) deliver to Landlord a bond in form, content, amount and issued by
surety, satisfactory to Landlord, indemnifying, protecting, defending and
holding harmless the Indemnitees (as hereinafter defined) against all costs and
liabilities resulting from such lien or claim and the foreclosure or attempted
foreclosure thereof. Tenant’s failure to comply with the provisions of the
foregoing sentence shall be deemed an Event of Default under Section 22.
hereof.

  
     15.     Insurance.

		
	 	        A. Landlord shall maintain such all risk insurance on the Building,
the structural improvements therein and the Premises (other than on
Tenant’s Property or on any additional improvements constructed in the
Premises by Tenant), and general liability insurance, in such amounts as
covered by owners of comparable office buildings in the same general
geographic area of the Building. The cost of such insurance shall be
included as a part of the Basic Costs, and payments for losses thereunder
shall be made solely to Landlord or the mortgagees of Landlord as their
interests shall appear.

24

 

		
	 	        B.    Tenant shall maintain at its expense, (i) in an amount equal to full replacement cost, special form (formerly known as all risk) property
insurance on all of its personal property, including removable trade fixtures and leasehold and tenant improvements, plate glass insurance
(insuring against all risks for the full cost of repairing and/or restoring all plate glass in, at or about the Premises), signage insurance
(insuring the cost of repairing and/or restoring all of Tenant’s exterior signs on the Building), and Tenant’s Property located in the Premises
and in such additional amounts as are required to meet Tenant’s obligations pursuant to Section 18 hereof and with deductibles in an amount
reasonably satisfactory to Landlord, and (ii) a policy or policies of commercial general liability insurance (including endorsement or separate
policy for owned or non-owned automobile liability) with respect to its activities in the Building and on the Property, with the premiums
thereon fully paid on or before the due date, in an amount of not less than $2,000,000 per occurrence per person coverage for bodily injury,
property damage, personal injury or combination thereof (the term “personal injury” as used herein means, without limitation, false arrest,
detention or imprisonment, malicious prosecution, wrongful entry, liable and slander), provided that if only single limit coverage is available
it shall be for at least $2,000,000 per occurrence with an umbrella policy of at least $5,000,000 combined single limit per occurrence.
Tenant’s insurance policies shall name Landlord and Building Manager as additional insureds and shall include coverage for the contractual
liability of Tenant to indemnify Landlord and Building Manager pursuant to Section 16 of this Lease and shall have deductibles in an amount
reasonably satisfactory to Landlord. Prior to Tenant’s taking possession of the Premises, Tenant shall furnish evidence satisfactory to
Landlord of the maintenance and timely renewal of such insurance, and Tenant shall obtain and deliver to Landlord a written obligation on the
part of each insurer to notify Landlord at least thirty (30) days prior to the modification, cancellation or expiration of such insurance
policies. In the event Tenant shall not have delivered to Landlord a policy or certificate evidencing such insurance at least thirty (30) days
prior to the expiration date of each expiring policy, Landlord may, following prior written notice to Tenant, obtain such insurance as Landlord
may reasonably require to protect Landlord’s interest (which obtaining of insurance shall not be deemed to be a waiver of Tenant’s default
hereunder). The cost to Landlord of obtaining such policies, plus an administrative fee in the amount of fifteen percent (15%) of the cost of
such policies shall be paid by Tenant to Landlord as Additional Rent upon demand.

		
	 	        C.    The insurance requirements set forth in this Section 15 are independent of the waiver, indemnification, and other obligations under this Lease
and will not be construed or interpreted in any way to restrict, limit or modify the waiver, indemnification and other obligations or to in any
way limit any party’s liability under this Lease. In addition to the requirements set forth in Sections 15 and 16, the insurance required of
Tenant under this Lease must be issued by an insurance company with a rating of no less than A-VIII in the current Best’s Insurance Guide, or
A- in the current Standard & Poor Insurance Solvency Review, or in that is otherwise acceptable to Landlord, and admitted to engage in the
business of insurance in the state in which the Building is located; be primary insurance for all claims under it and provide that any
insurance carried by Landlord and Landlord’s lenders is strictly excess, secondary and noncontributing with any insurance carried by Tenant;
and provide that insurance may not be cancelled, nonrenewed or the

25

 

		
	 	subject of material change in coverage of available limits of coverage,
except upon thirty (30) days’ prior written notice to Landlord and Landlord’s lenders. Tenant will deliver either a duplicate original or a
legally enforceable certificate of insurance on all policies procured by Tenant in compliance with Tenant’s obligations under this Lease,
together with evidence satisfactory to Landlord of the payment of the premiums therefor, to Landlord on or before the date Tenant first
occupies any portion of the Premises, at least thirty (30) days before the expiration date of any policy and upon the renewal of any policy.
Landlord must give its prior written approval to all deductibles and self-insured retentions under Tenant’s policies. Tenant may comply with
its insurance coverage requirements through a blanket policy, provided Tenant, at Tenant’s sole expense, procures a “per location” endorsement,
or equivalent reasonably acceptable to Landlord, so that the general aggregate and other limits apply separately and specifically to the
Premises.

		
	 	        D.    If Tenant’s business operations, conduct or use of the Premises or any other part of the Property causes a verifiable increase in the premium
for any insurance policy carried by Landlord, Tenant will, within thirty (30) days after receipt of notice from Landlord, reimburse Landlord
for the entire increase.
	 
	 	        E.    Neither Landlord nor Tenant shall be liable (by way of subrogation or otherwise) to the other party (or to any insurance company insuring the
other party) for any personal injury or loss or damage to any of the property of Landlord or Tenant, as the case may be, with respect to their
respective property, the Building, the Property or the Premises or any addition or improvements thereto, or any contents therein, to the extent
covered by insurance carried or required to be carried by a party hereto even though such loss might have been occasioned by the negligence or
willful acts or omissions of Landlord or Tenant or their respective employees, agents, contractors or invitees. Since this mutual waiver will
preclude the assignment of any such claim by subrogation (or otherwise) to an insurance company (or any other person), Landlord and Tenant each
agree to give each insurance company which has issued, or on the future may issue, policies of insurance, with respect to the items covered by
this waiver, written notice of the terms of this mutual waiver, and to have such insurance policies properly endorsed, if necessary, to prevent
the invalidation of any of the coverage provided by such insurance policies by reason of such mutual waiver. For the purpose of the foregoing
waiver, the amount of any deductible applicable to any loss or damage shall be deemed covered by, and recoverable by the insured under the
insurance policy to which such deductible relates. In the event that Tenant is permitted to and self-insures any risk for which insurance is
required to be carried under this Lease, or if Tenant fails to carry any insurance required to be carried by Tenant pursuant to this Lease,
then all loss or damage to Tenant, its leasehold interest, its business, its property, the Premises or any additions or improvements thereto or
contents thereof shall be deemed covered by and recoverable by Tenant under valid and collectible policies of insurance. Notwithstanding
anything to the contrary herein, Landlord shall not be liable to Tenant or any insurance company (by way of subrogation or otherwise) insuring
Tenant for any loss or damage to any property, or bodily injury or personal injury or any resulting loss of income or losses from worker’s
compensation laws and benefits, even though such loss or damage might have been occasioned by the negligence of Landlord, its agents or

26

 

		
	 	employees, or Building Manager, if any such loss or damage was required to be covered by insurance pursuant to this Lease.

		
	 	        16.     Indemnity. To the extent not expressly prohibited by law and except for the willful misconduct and the gross negligence of Landlord and its
agents, employees and contractors, neither Landlord nor Building Manager nor any of their respective officers, directors, employees, members, managers, or
agents shall be liable to Tenant, or to Tenant’s agents, servants, employees, customers, licensees, or invitees for any injury to person or damage to
property caused by any act, omission, or neglect of Tenant, its agents, servants, employees, customers, invitees, licensees or by any other person entering
the Building or upon the Property under the invitation of Tenant or arising out of the use of the Property, Building or Premises by Tenant and the conduct
of its business or out of a default by Tenant in the performance of its obligations hereunder. Except for the willful misconduct and the gross negligence
of Landlord and its agents, employees and contractors, Tenant hereby indemnifies and holds Landlord and Building Manager and their respective officers,
directors, employees, members, managers and agents (“Indemnitees”), harmless from all liability and claims for any property damage, or bodily injury or
death of, or personal injury to, a person in or on the Premises, or at any other place, including the Property or the Building and this indemnity shall be
enforceable to the full extent whether or not such liability and claims are the result of the sole, joint or concurrent acts, negligent or intentional, or
otherwise, of Tenant, or its employees, agents, servants, customers, invitees or licensees. Notwithstanding the terms of this Lease to the contrary, the
terms of this Section shall survive the expiration or earlier termination of this Lease.

		
	 	        17.    Damages from Certain Causes. To the extent not expressly prohibited by law and except for the willful misconduct and the gross negligence of
Landlord and its agents, employees and contractors, Landlord shall not be liable to Tenant or Tenant’s employees, contractors, agents, invitees or
customers, for any injury to person or damage to property sustained by Tenant or any such party or any other person claiming through Tenant resulting from
any accident or occurrence in the Premises or any other portion of the Building caused by the Premises or any other portion of the Building becoming out of
repair or by defect in or failure of equipment, pipes, or wiring, or by broken glass, or by the backing up of drains, or by gas, water, steam, electricity,
or oil leaking, escaping or flowing into the Premises (except where due to Landlord’s willful failure to make repairs required to be made pursuant to other
provisions of this Lease, after the expiration of a reasonable time after written notice to Landlord of the need for such repairs), nor shall Landlord be
liable to Tenant for any loss or damage that may be occasioned by or through the acts or omissions of other tenants of the Building or of any other persons
whomsoever, including, but not limited to riot, strike, insurrection, war, court order, requisition, order of any governmental body or authority, acts of
God, fire or theft.

		
	 	        18.    Casualty Damage. If the Premises or any part thereof shall be damaged by fire or other casualty, Tenant shall give prompt written notice
thereof to Landlord. In case the Building shall be so damaged that substantial alteration or reconstruction of the Building (i.e., casualty which would
reasonably require more than one hundred eighty (180) days to restore) shall, in Landlord’s reasonable opinion, be required (whether or not the Premises
shall have been damaged by such casualty) or in the event there is less than two (2) years of the Lease Term remaining or in the event Landlord’s mortgagee
should require that the insurance proceeds payable as a result of a

27

 

		
	 	casualty be applied to the payment of the mortgage debt or in the event of any material
uninsured loss to the Building, Landlord may, at its option, terminate this Lease by notifying Tenant in writing of such termination within seventy-five
(75) days after the date of such casualty. If Landlord does not thus elect to terminate this Lease, Landlord shall commence and proceed with reasonable
diligence to restore the Building, and the improvements located within the Premises, if any, for which Landlord had financial responsibility pursuant to
the Work Letter Agreement attached hereto as Exhibit D (except that Landlord shall not be responsible for delays not within the control of Landlord) to
substantially the same condition in which it was immediately prior to the happening of the casualty. Notwithstanding the foregoing, Landlord’s obligation
to restore the Building, and the improvements located within the Premises, if any, for which Landlord had financial responsibility pursuant to the Work
Letter Agreement, shall not require Landlord to expend for such repair and restoration work more than the insurance proceeds actually received by Landlord
as a result of the casualty and Landlord’s obligation to restore shall be further limited so that Landlord shall not be required to expend for the repair
and restoration of the improvements located within the Premises, if any, for which Landlord had financial responsibility pursuant to the Work Letter
Agreement, more than the dollar amount of the Allowance, if any, described in the Work Letter Agreement. When the repairs described in the preceding two
sentences have been completed by Landlord, Tenant shall complete the restoration of all improvements, including furniture, fixtures and equipment, which
are necessary to permit Tenant’s reoccupancy of the Premises. Except as set forth above, all cost and expense of reconstructing the Premises shall be
borne by Tenant, and Tenant shall present Landlord with evidence reasonably satisfactory to Landlord of Tenant’s ability to pay such costs prior to
Landlord’s commencement of repair and restoration of the Premises. Landlord shall not be liable for any inconvenience or annoyance to Tenant or injury to
the business of Tenant resulting in any way from such damage or the repair thereof, except that, subject to the provisions of the next sentence, commencing
with the date of such casualty, Landlord shall allow Tenant a fair diminution of Rent during the time and to the extent the Premises are unfit for Tenant’s
normal business operations as reasonably determined by Tenant in the exercise of prudent business judgment. If the Premises or any other portion of the
Property is damaged by fire or other casualty resulting from the fault or negligence of Tenant or any of Tenant’s agents, employees, or invitees, the rent
hereunder shall not be diminished during the repair of such damage and Tenant shall be liable to Landlord for the cost of the repair and restoration of the
Property caused thereby to the extent such cost and expense is not covered by insurance proceeds.

		
	 	        19.     Condemnation. If the whole or any substantial part of the Premises or if the Building or any portion thereof which would leave the remainder
of the Building unsuitable for use as an office building comparable to its use on the Commencement Date, or if the land on which the Building is located or
any material portion thereof, shall be taken or condemned for any public or quasi-public use under governmental law, ordinance or regulation, or by right
of eminent domain, or by private purchase in lieu thereof, then Landlord or Tenant may, at their respective option, terminate this Lease and the rent shall
be abated during the unexpired portion of this Lease, effective when the physical taking of said Premises or said portion of the Building or land shall
occur. In the event this Lease is not terminated, the rent for any portion of the Premises so taken or condemned shall be abated during the unexpired term
of this Lease effective when the physical taking of said portion of the Premises shall occur. All compensation awarded for any such taking or
condemnation, or sale proceeds in lieu thereof, shall be the property of Landlord, and Tenant

28

 

		
	 	shall have no claim thereto, the same being hereby expressly
waived by Tenant, except for any portions of such award or proceeds which are specifically allocated by the condemning or purchasing party for the taking
of or damage to trade fixtures of Tenant, which Tenant specifically reserves to itself. Landlord hereby represents that, as of the date hereof, Landlord
has not received notice of any condemnation or eminent domain proceeding with respect to the Building or any portion thereof.

		
	 	        20.    Hazardous Substances.

		
	 	        A.    Tenant hereby represents and covenants to Landlord the following: No toxic or hazardous substances or wastes, pollutants or contaminants
(including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum
products including gasoline, fuel oil, crude oil and various constituents of such products, radon, and any hazardous substance as defined in
the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601-9657, as amended (“CERCLA”) (collectively,
“ Environmental Pollutants”) other than customary office supplies and cleaning supplies (including supplies commonly used or stored by tenants
for administrative purposes in connection with the operation of a retail bank) stored and handled by Tenant within the Premises in accordance
with all applicable laws, will be generated, treated, stored, released or disposed of, or otherwise placed, deposited in or located on the
Property by Tenant, its agents, employees, invitees or contractors, and no activity shall be taken on the Property, by Tenant, its agents,
employees, invitees or contractors, that would cause or contribute to (i) the Property or any part thereof to become a generation, treatment,
storage or disposal facility within the meaning of or otherwise bring the Property within the ambit of the Resource Conservation and Recovery
Act of 1976 (“RCRA”), 42 U.S.C. 5901 et. seq., or any similar state law or local ordinance, (ii) a release or threatened release of toxic or
hazardous wastes or substances, pollutants or contaminants, from the Property or any part thereof within the meaning of, or otherwise result in
liability in connection with the Property within the ambit of CERCLA, or any similar state law or local ordinance, or (iii) the discharge of
pollutants or effluents into any water source or system, the dredging or filling of any waters, or the discharge into the air of any emissions,
that would require a permit under the Federal Water Pollution Control Act, 33 U.S.C. 1251 et. seq., or the Clean Air Act, 42 U.S.C. 7401 et.
seq., or any similar state law or local ordinance.

		
	 	        B.    Except in connection with a breach of Landlord’s representation in Section 20.E below, Tenant expressly waives, to the extent allowed by law,
any claims under federal, state or other law that Tenant might otherwise have against Landlord relating to the condition of such Property or
the Premises or the Leasehold Improvements or personal property located thereon or the presence in or contamination of the Property or the
Premises by hazardous materials. Tenant agrees to indemnify and hold Indemnitees (as defined in Section 16) harmless from and against and to
reimburse Indemnitees with respect to, any and all claims, demands, causes of action, loss, damage, liabilities, costs and expenses (including
attorneys’ fees and court costs) of any and every kind or character, known or unknown, fixed or contingent, asserted against or incurred by
Landlord at any

29

 

		
	 	time and from time-to-time by reason of or arising out of the breach of any representation or covenant contained in Section
20.A above.

		
	 	        C.    Tenant shall immediately notify Landlord in writing of any release or threatened release of toxic or hazardous wastes or substances, pollutants
or contaminants of which Tenant has knowledge whether or not the release is in quantities that would require under law the reporting of such
release to a governmental or regulatory agency.
	 
	 	        D.    Tenant shall also immediately notify Landlord in writing of, and shall contemporaneously provide Landlord with a copy of:

		
	 	        (1)    Any written notice of release of hazardous wastes or substances, pollutants or contaminants on the Property that is provided by Tenant or any
subtenant or other occupant of the Premises to a governmental or regulatory agency;
	 
	 	        (2)    Any notice of a violation, or a potential or alleged violation, of any Environmental Law (hereinafter defined) that is received by Tenant or
any subtenant or other occupant of the Premises from any governmental or regulatory agency;
	 
	 	        (3)    Any inquiry, investigation, enforcement, cleanup, removal, or other action that is instituted or threatened by a governmental or regulatory
agency against Tenant or any subtenant or other occupant of the Premises and that relates to the release or discharge of hazardous
wastes or substances, pollutants or contaminants on or from the Property;
	 
	 	        (4)    Any claim that is instituted or threatened by any third-party against Tenant or any subtenant or other occupant of the Premises and that
relates to any release or discharge of hazardous wastes or substances, pollutants or contaminants on or from the Property; and
	 
	 	        (5)    Any notice of the loss of any environmental operating permit by Tenant or any subtenant or other occupant of the Premises.

		
	 	        E.    Landlord represents that it has not received any notice of violation of any Environmental Laws which remains uncured, and that, to its
knowledge, no Environmental Pollutants (other than standard quantities of standard building cleaning, maintenance and repair materials or other
de minimis amounts of same) are present in the Building that would materially adversely affect the Premises or Tenant’s access thereto or are
in violation of any Environmental Laws. Landlord shall indemnify and hold harmless Tenant (as well as Tenant’s officers, directors,
shareholders, employees, partners, servants and agents) (the “Tenant Indemnified Parties”) of and from any and all costs of remediation
incurred or suffered by the Tenant Indemnified Parties, or asserted by a third party against the Tenant Indemnified Parties, directly or
indirectly due to the presence or removal of, or failure to

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	 	remove, Environmental Pollutants generated, accumulated, stored or released by
Landlord in or about the common areas of the Building.

		
	 	        F.    As used herein “Environmental Laws” mean all present and future federal, state and municipal laws, ordinances, rules and regulations applicable
to environmental and ecological conditions, and the rules and regulations of the U.S. Environmental Protection Agency, and any other federal,
state or municipal agency, or governmental board or entity relating to environmental matters.

		
	 	        21.    Americans with Disabilities Act. Tenant agrees to comply with all requirements of the Americans with Disabilities Act (Public Law (July 26,
1990) (“ADA”) applicable to the Premises and such other current acts or other subsequent acts, (whether federal or state) addressing like issues as are
enacted or amended. Tenant agrees to indemnify and hold Landlord harmless from any and all expenses, liabilities, costs or damages suffered by Landlord as
a result of additional obligations which may be imposed on the Building or the Property under any such acts by virtue of Tenant’s operations and/or
occupancy. Tenant acknowledges that it will be wholly responsible for any provision of the Lease which could arguably be construed as authorizing a
violation of the ADA. Any such provision shall be interpreted in a manner which permits compliance with the ADA and is hereby amended to permit such
compliance. Tenant hereby agrees that it will not operate its business in the Premises in such a fashion so as to cause the Premises, the Building or the
Property to become a “place of public accommodation” as defined in the ADA. Notwithstanding the foregoing, Landlord at its expense (subject to inclusion
of the same in Basic Costs, if and to the extent permitted) shall take steps necessary to comply with the ADA to the extent the same applies directly to
the Building structure and systems or the Common Areas as a whole; provided, however, that to the extent any non-compliance is a result of the particular
use or occupancy of the Premises by Tenant or any action or inaction of Tenant or any invitee of Tenant, or if any improvements made by Landlord to comply
with the ADA benefit solely the Premises (and not any other premises) and are atypical of those performed for similarly situated tenants, then such
compliance shall be at Tenant’s cost; and provided further, however, that Tenant at its expense shall be responsible for all space within the Premises
being in compliance with the ADA.

		
	 	        22.    Events of Default.

		
	 	        A.    The following events shall be deemed to be “Events of Default” under this Lease:

		
	 	        (1)    Tenant shall fail to pay when due any Base Rent, Additional Rent, or other amount payable by Tenant to Landlord under this Lease, which failure
continues for five (5) Business Days after Tenant’s receipt of written notice thereof (hereinafter sometimes referred to as a
“Monetary Default”).
	 
	 	        (2)    Any failure by Tenant (other than a Monetary Default) to comply with any term, provision or covenant of this Lease, which failure is not cured
within thirty (30) days after delivery to Tenant of notice of the occurrence of such failure

31

 

		
	 	provided, however, that if the term,
condition, covenant or obligation to be performed by Tenant is of such nature that the same cannot reasonably be performed within
such thirty (30) day period, such default shall be deemed to have been cured if Tenant commences such performance within said
thirty (30) day period and thereafter diligently undertakes to complete the same, and in fact, completes same within ninety (90)
days after notice.

		
	 	        (3)    Any failure by Tenant to observe or perform any of the covenants with respect to (a) assignment and subletting set forth in Section 13, (b)
mechanic’s liens set forth in Section 14, or (c) insurance set forth in Section 15.
	 
	 	        (4)    Tenant shall (a) become insolvent, (b) make a transfer in fraud of creditors (c) make an assignment for the benefit of creditors, (d) admit in
writing its inability to pay its debts as they become due, (e) file a petition under any section or chapter of the United States
Bankruptcy Code, as amended, pertaining to bankruptcy, or under any similar law or statute of the United States or any State
thereof, or Tenant shall be adjudged bankrupt or insolvent in proceedings filed against Tenant; or a petition or answer proposing
the adjudication of Tenant as a bankrupt or its reorganization under any present or future federal or state bankruptcy or similar
law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the
filing thereof.
	 
	 	        (5)    A receiver or trustee shall be appointed for all or substantially all of the assets of Tenant or of the Premises or of any of Tenant’s property
located thereon in any proceeding brought by Tenant, or any such receiver or trustee shall be appointed in any proceeding brought
against Tenant and shall not be discharged within sixty (60) days after such appointment or Tenant shall consent to or acquiesce in
such appointment.
	 
	 	        (6)    The leasehold estate hereunder shall be taken on execution or other process of law in any action against Tenant.
	 
	 	        (7)    Tenant shall abandon (i.e., vacate without intent to return) any substantial portion of the Premises.
	 
	 	        (8)    Tenant shall fail to take possession of and occupy the Premises within sixty (60) days following the Target Opening Date and thereafter
continuously conduct its operations in the Premises for the Permitted Use as set forth in Section 4 hereof.
	 
	 	        (9)    The liquidation, termination, dissolution, forfeiture of right to do business of Tenant.
	 
	 	        (10)    The occurrence of any event defined as an “Event of Default” elsewhere in this Lease or in any Exhibits attached to this Lease.

		
	 	        23.     Remedies.

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	 	        A.    Upon the occurrence of any Event of Default, Landlord shall have the following rights and remedies, in addition to those allowed by law or
equity, any one or more of which may be exercised without further notice to or demand upon Tenant and which may be pursued successively or
cumulatively as Landlord may elect:

		
	 	        (1)    Landlord may re-enter the Premises and cure any default of Tenant, in which event Tenant shall, upon demand, reimburse Landlord as Additional
Rent for any cost and expenses which Landlord may incur to cure such default; and Landlord shall not be liable to Tenant for any
loss or damage which Tenant may sustain by reason of Landlord’s action, unless caused by Landlord’s gross negligence or willful
misconduct.
	 
	 	        (2)    Landlord may terminate this Lease by giving to Tenant notice of Landlord’s election to do so, in which event the Lease Term shall end, and all
right, title and interest of Tenant hereunder shall expire, on the date stated in such notice;
	 
	 	        (3)    Landlord may terminate the right of Tenant to possession of the Premises without terminating this Lease by giving notice to Tenant that
Tenant’s right to possession shall end on the date stated in such notice, whereupon the right of Tenant to possession of the
Premises or any part thereof shall cease on the date stated in such notice; and
	 
	 	        (4)    Landlord may enforce the provisions of this Lease and may enforce and protect the rights of Landlord hereunder by a suit or suits in equity or
at law for the specific performance of any covenant or agreement contained herein, or for the enforcement of any other appropriate
legal or equitable remedy, including recovery of all moneys due or to become due from Tenant under any of the provisions of this
Lease.

Landlord shall not be required to serve Tenant with any notices or demands as a prerequisite to its exercise of any of its rights or remedies under this
Lease, other than those notices and demands specifically required under this Lease. TENANT EXPRESSLY WAIVES THE SERVICE OF ANY STATUTORY DEMAND OR NOTICE
WHICH IS A PREREQUISITE TO LANDLORD’S COMMENCEMENT OF EVICTION PROCEEDINGS AGAINST TENANT, INCLUDING THE DEMANDS AND NOTICES SPECIFIED IN APPLICABLE STATE
STATUTE OR CASE LAW.

		
	 	        B.    If Landlord exercises either of the remedies provided in Sections 23.A.(2) or 23.A.(3), Tenant shall surrender possession and vacate the
Premises and immediately deliver possession thereof to Landlord, and Landlord may re-enter and take complete and peaceful possession of the
Premises, with process of law, full and complete license to do so being hereby granted to Landlord, and Landlord may remove all occupants and
property therefrom, using such force as may be necessary to the extent allowed by law, without being deemed guilty in any manner of trespass,
eviction or forcible entry and detainer and without relinquishing Landlord’s right to Rent or any other right given to Landlord hereunder or by
operation of law. Whether or not this Lease and/or Tenant’s right of

33

 

		
	 	possession is terminated, Landlord shall have the right, at its sole
option, to terminate any renewal or expansion right contained in this Lease and to grant or withhold any consent or approval pursuant to this
Lease in its sole and absolute discretion. Tenant hereby expressly waives, for itself and all persons claiming by, through or under it, any
right of redemption, re-entry or restoration of the operation of this Lease under any present or future law, including without limitation any
such right which Tenant would otherwise have in case Tenant shall be dispossessed for any cause, or in case Landlord shall obtain possession of
the Premises as herein provided.

		
	 	        C.    (1) If Landlord terminates the right of Tenant to possession of the Premises without terminating this Lease, Landlord shall have the
right to immediate recovery of all amounts then due hereunder. Neither such termination of the right of Tenant to possession, nor the actual
re-taking of possession of the Premises by Landlord (whether through legal process or otherwise) shall release Tenant, in whole or in part,
from Tenant’s obligation to pay Rent hereunder for the full Lease Term, and Landlord shall have the right, from time to time, to recover from
Tenant, and Tenant shall remain liable for, all Base Rent, Additional Rent and any other sums accruing as they become due under this Lease
during the period from the date of such notice of termination of possession to the stated end of the Lease Term. In any such case, Landlord
may relet the Premises or any part thereof for the account of Tenant for such rent, for such time (which may be for a term extending beyond the
Lease Term) and upon such terms (which may include concessions or allowances granted by Landlord) as Landlord, in its sole discretion, shall
determine and may collect the rents from such reletting, but Landlord shall not be liable for, nor shall Tenant’s obligations hereunder be
diminished by reason of, any failure by Landlord to relet all or any portion of the Premises or to collect any rent due upon such reletting.
Landlord shall not be required to accept any tenant offered by Tenant or to observe any instructions given by Tenant relative to such
reletting. Also, in any such case, Landlord may make repairs, alterations and additions in or to the Premises and redecorate the same to the
extent deemed by Landlord reasonably necessary or desirable and in connection therewith change the locks to the Premises, and Tenant upon
demand shall pay the cost of all of the foregoing together with Landlord’s expenses of reletting. The rents from any such reletting shall be
applied first to the payment of the expenses of reentry, redecoration, repair and alterations and the expenses of reletting and second to the
payment of Rent herein provided to be paid by Tenant. Any excess or residue shall operate only as an offsetting credit against the amount of
Rent due and owing as the same thereafter becomes due and payable hereunder, and the use of such offsetting credit to reduce the amount of Rent
due Landlord, if any, shall not be deemed to give Tenant any right, title or interest in or to such excess or residue and any such excess or
residue shall belong to Landlord solely, and in no event shall Tenant be entitled to a credit on its indebtedness to Landlord in excess of the
aggregate sum (including Base Rent and Additional Rent) which would have been paid by Tenant for the period for which the credit to Tenant is
being determined, had no Event of Default occurred. No such reentry or repossession, repairs, alterations and additions, or reletting shall be
construed as an eviction or ouster of Tenant or as an election on Landlord’s part to terminate this Lease, unless a written notice of such
intention is given to Tenant, or shall operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, and Landlord,
at any time and from time to time, may sue and

34

 

		
	 	recover judgment for any deficiencies remaining after the application of the proceeds of any
such reletting.

		
	 	        (2)    Notwithstanding anything contained in this Lease to the contrary, if Tenant is in default under this Lease
and has vacated the Premises, and if Landlord has terminated this Lease as a result of such default, then Landlord shall thereafter use
reasonable efforts to relet the Premises and to mitigate damages; provided, however, that Tenant understands and agrees that Landlord’s main
priority will be the leasing of other space in the Building and in other buildings in the Ballston sub-market of Arlington, Virginia controlled
by Landlord or any affiliate of Landlord (and not then leased by Landlord or such affiliate), and the reletting of the Premises will be of
lower priority. In no event shall Landlord be required to relet the Premises: (a) before leasing similar vacant space in the Building; (b) for
a rental less than the then-current fair market rental value for office space in the Building; or (c) to any proposed tenant that does not
have, in Landlord’s reasonable opinion, sufficient financial resources or operating experience to operate the Premises in a first-class manner.
	 
	 	        D.    If this Lease is terminated by Landlord pursuant to Section 23.A.(2), Landlord shall be entitled to recover from Tenant all Rent accrued and
unpaid for the period up to and including such termination date, as well as all other additional sums payable by Tenant, or for which Tenant is
liable or for which Tenant has agreed to indemnify Landlord under any of the provisions of this Lease, which may be then owing and unpaid, and
all costs and expenses, including without limitation court costs and attorneys’ fees incurred by Landlord in the enforcement of its rights and
remedies hereunder, and, in addition, Landlord shall be entitled to recover as damages for loss of the bargain and not as a penalty (i) the
unamortized portion of any concessions offered by Landlord to Tenant in connection with this Lease, including without limitation the
unamortized portion of Landlord’s contribution to the cost of tenant improvements and alterations, if any, installed by either Landlord or
Tenant pursuant to this Lease or any work letter in connection with this Lease, (ii) the aggregate sum which at the time of such termination
represents the excess, if any, of the present value of the aggregate rents which would have been payable after the termination date had this
Lease not been terminated, including, without limitation, Base Rent at the annual rate or respective annual rates for the remainder of the
Lease Term provided for in this Lease and the amount projected by Landlord to represent Additional Rent for the remainder of the Lease Term
over the then present value of the then aggregate fair rent value of the Premises for the balance of the Lease Term, such present worth to be
computed in each case on the basis of a fifteen percent (15%) per annum discount from the respective dates upon which such Rents would have
been payable hereunder had this Lease not been terminated, and (iii) any damages in addition thereto, including without limitation reasonable
attorneys’ fees and court costs, which Landlord sustains as a result of the breach of any of the covenants of this Lease other than for the
payment of Rent. Notwithstanding anything contained hereinabove to the contrary, Landlord shall credit Tenant for any rental amounts it
receives from other parties and which directly relate to any rental amounts recovered from Tenant pursuant to this Section 23.D.

35

 

		
	 	        E.    The provisions contained in this Section 23 shall be in addition to, and shall not prevent the enforcement of, any claim Landlord may have
against Tenant for anticipatory breach of this Lease (including, without limitation, the right of injunction and the right to invoke any remedy
allowed at law or in equity as if reentry, summary proceedings and other remedies were not provided for herein). In addition, if, after the
occurrence of an Event of Default, Landlord terminates this Lease or attempts to reenter and take possession of the Premises, then the
unamortized portion of any rent abatement and improvement or other allowance granted to Tenant under this Lease shall be deemed to have never
applied and Tenant shall be liable for all rent that would have applied to any period of occupancy (whether or not such period has elapsed) for
which rent was not payable and the amount of any allowance (or portion thereof) that Landlord had paid to or for the benefit of Tenant. Nothing
herein shall be construed to affect or prejudice Landlord’s right to prove, and claim in full, unpaid rent accrued prior to termination of this
Lease. If Landlord is entitled, or Tenant is required, pursuant to any provision hereof to take any action upon the termination of the Lease
Term, then Landlord shall be entitled, and Tenant shall be required, to take such action also upon the termination of Tenant’s right of
possession.
	 
	 	        F.    All property of Tenant removed from the Premises by Landlord pursuant to any provision of this Lease or applicable law may be handled, removed
or stored by Landlord at the cost and expense of Tenant, and Landlord shall not be responsible in any event for the value, preservation or
safekeeping thereof. Tenant shall pay Landlord for all expenses incurred by Landlord with respect to such removal and storage so long as the
same is in Landlord’s possession or under Landlord’s control. All such property not removed from the Premises or retaken from storage by
Tenant within thirty (30) days after the end of the Lease Term or the termination of Tenant’s right to possession of the Premises, however
terminated, at Landlord’s option, shall be conclusively deemed to have been conveyed by Tenant to Landlord as by bill of sale without further
payment or credit by Landlord to Tenant.
	 
	 	        G.    Tenant hereby grants to Landlord a first lien upon the interest of Tenant under this Lease to secure the payment of moneys due under this
Lease, which lien may be enforced in equity, and Landlord shall be entitled as a matter of right to have a receiver appointed to take
possession of the Premises and relet the same under order of court.
	 
	 	        H.    If Tenant files or has filed against it a bankruptcy case under federal or state bankruptcy laws, is adjudged bankrupt, or a trustee in
bankruptcy is appointed for Tenant, Landlord and Tenant, to the extent permitted by law, agree (i) to request that the trustee in bankruptcy
determine within sixty (60) days after such filing whether to assume or to reject this Lease, and that (ii) if there has been any payment
default hereunder, any requirement of adequate assurance of future performance may reasonably require a security deposit of not less than four
(4) full months of Rent hereunder.
	 
	 	        I.    The receipt by Landlord at any time of less than the full rent due shall not be construed to be other than a payment on account of rent then
due, nor shall any statement on Tenant’s check or any letter accompanying Tenant’s check be deemed a settlement and

36

 

		
	 	compromise or an accord and
satisfaction, and Landlord may accept such payment without prejudice to Landlord’s right to recover the balance of the rent due or to pursue
any other remedies provided in this Lease. The acceptance by Landlord of rent hereunder shall not be construed to be a waiver of any breach by
Tenant of any term, covenant or condition of this Lease. No act or omission by Landlord or its employees or agents during the term of this
Lease shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept such a surrender shall be valid unless in
writing and signed by Landlord.

		
	 	        J.    In the event of any litigation between Tenant and Landlord to enforce any provision of this Lease or any right of either party hereto, the
unsuccessful party to such litigation shall pay to the successful party all costs and expenses, including reasonable attorney’s fees, incurred
therein. In addition, if Landlord is required to engage counsel with respect to any Event of Default hereunder by Tenant, whether or not
litigation is initiated, Landlord shall be entitled to recover from Tenant on demand, the reasonable attorneys’ fees so incurred. Furthermore,
if Landlord, without fault, is made a party to any litigation instituted by or against Tenant, Tenant shall indemnify Landlord against, and
protect, defend, and save it harmless from, all costs and expenses, including reasonable attorney’s fees, incurred by it in connection
therewith. If Tenant, without fault, is made party to any litigation instituted by or against Landlord, Landlord shall indemnify Tenant
against, and protect, defend, and save it harmless from, all costs and expenses, including reasonable attorney’s fees, incurred by it in
connection therewith. Finally, should Tenant become a debtor in any bankruptcy case, under federal or state law, Landlord shall be entitled to
recover from Tenant any reasonable attorneys’ fees incurred with the participation of Landlord in such case including, without limitation,
those attorneys’ fees incurred with respect to preparing, filing, negotiating or litigating a proof or proofs of claim, participating in the
process of lease assumption and rejection (including objecting to any extensions of time to make such decision), and participation in the
process of confirming a plan of reorganization or liquidation (including the approval of the disclosure statement and the confirmation of the
plan). The attorneys’ fees recoverable pursuant hereto shall include the fees of para-professionals employed or engaged by such attorneys.

		
	 	        24.    No Waiver. Failure of Landlord to declare any default immediately upon its occurrence, or delay in taking any action in connection with an
event of default, shall not constitute a waiver of such default, nor shall it constitute an estoppel against Landlord, but Landlord shall have the right to
declare the default at any time and take such action as is lawful or authorized under this Lease. Failure by Landlord to enforce its rights with respect
to any one default shall not constitute a waiver of its rights with respect to any subsequent default.
	 
	 	        25.    Peaceful Enjoyment. Tenant shall, and may peacefully have, hold, and enjoy the Premises, subject to the other terms hereof, provided that
Tenant pays the Rent and other sums herein recited to be paid by Tenant and timely performs all of Tenant’s covenants and agreements herein contained.
This covenant and any and all other covenants of Landlord shall be binding upon Landlord and its successors only with respect to breaches occurring during
its or their respective periods of ownership of Landlord’s interest hereunder.
	 
	 	        26.     [Reserved]

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	 	        27.    Holding Over. In the event of holding over by Tenant after expiration or other termination of this Lease or in the event Tenant continues to
occupy the Premises after the termination of Tenant’s right of possession pursuant to Section 23.A(3) hereof, occupancy of the Premises subsequent to such
termination or expiration shall be that of a tenancy at sufferance and in no event for month-to-month or year-to-year. Tenant shall, throughout the entire
holdover period, be subject to all the terms and provisions of this Lease and shall pay for its use and occupancy an amount (on a per month basis without
reduction for any partial months during any such holdover) equal to the greater of (a) the then current market rate, or (b) the following percentages of
the Base Rent, Additional Rent and other sums which would have been payable pursuant to the provisions of this Lease if the Lease Term had continued during
such holdover period: one hundred fifty percent (150%) for the first (1st) three (3) months of such holdover; and two hundred percent (200%) for each
month thereafter. No holding over by Tenant or payments of money by Tenant to Landlord after the expiration of the Lease Term shall be construed to extend
the Lease Term or prevent Landlord from recovery of immediate possession of the Premises by summary proceedings or otherwise unless Landlord has sent
written notice to Tenant that Landlord has elected to extend the Lease Term. In addition to the obligation to pay the amounts set forth above during any
such holdover period, Tenant shall also be liable to Landlord for all damages, including, without limitation, any consequential damages, which Landlord may
suffer by reason of any holding over by Tenant and Tenant shall also indemnify Landlord against any and all claims made by any other tenant or prospective
tenant against Landlord for delay by Landlord in delivering possession of the Premises to such other tenant or prospective tenant.
	 
	 	        28.     Subordination/Estoppel Certificate.

		
	 	        A.    This Lease is subject and subordinate to the lien, provisions, operation and effect of all mortgages, deeds of trust, ground leases or other
security instruments which may now or hereafter encumber any portion of the Building, the Building or the Land (collectively, “Mortgages”), to
all funds and indebtedness intended to be secured thereby, and to all renewals, extensions, modifications, recastings or refinancings thereof.
Said subordination and the provisions of this Section shall be self-operative and no further instrument of subordination shall be required by
the holder of any Mortgage. The holder of any Mortgage to which this Lease is subordinate shall have the right (subject to any required
approval of the holders of any superior Mortgage) at any time to declare this Lease to be superior to the lien, provisions, operation and
effect of such Mortgage.
	 
	 	        B.    Tenant shall, within ten (10) days of Tenant’s receipt of Landlord’s written request, execute and deliver to Landlord any requisite or
appropriate document confirming such subordination. Tenant waives the provisions of any statute or rule of law now or hereafter in effect
which may give or purport to give Tenant any right to terminate or otherwise adversely affect this Lease and Tenant’s obligations hereunder in
the event any foreclosure proceeding is prosecuted or completed or in the event the Building, the Land or Landlord’s interest therein is
transferred by foreclosure, by deed in lieu of foreclosure or otherwise. If this Lease is not extinguished upon any such transfer or by the
transferee following such transfer, then, at the request of such transferee, Tenant shall attorn to such transferee and shall recognize such
transferee as the landlord under this Lease. To the extent the Building or the Land is encumbered by a ground lease when this Lease is

38

 

		
	 	executed, then this Lease shall be deemed to be a sublease while such ground lease remains in full force and effect. Tenant agrees that upon
any such attornment, such transferee shall not be (1) bound by any payment of the Base Rent or additional rent more than one (1) month in
advance, except prepayments in the nature of security for the performance by Tenant of its obligations under this Lease, but only to the extent
such prepayments have been delivered to such transferee, (2) bound by any amendment of this Lease (which reduces rent or charges payable under
this Lease or shortens or lengthens the Lease Term or otherwise adversely affects the rights or obligations of the landlord under this Lease)
made without the consent of the holder of each Mortgage existing as of the date of such amendment, (3) liable for damages for any breach, act
or omission of any prior landlord, (4) subject to any offsets or defenses which Tenant might have against any prior landlord, (5) bound by any
obligation which may appear in this Lease to maintain a fitness facility within the Project, (6) bound by any obligation which may appear in
this Lease to perform any tenant improvement work to the Premises, or (7) bound by any obligation which may appear in this Lease to pay any sum
of money to Tenant; provided, however, that after succeeding to Landlord’s interest under this Lease, such transferee shall agree to perform in
accordance with the terms of this Lease all obligations of Landlord arising after the date of transfer. Within ten (10) days after written
request of such transferee, Tenant shall execute, acknowledge and deliver any requisite or appropriate document submitted to Tenant confirming
such attornment.
	 
	 	        C.    If any prospective or current holder of a Mortgage requires that modifications to this Lease be obtained, and provided that such modifications
(1) are reasonable, (2) do not adversely affect in a material manner Tenant’s use of the Premises as herein permitted or materially adversely
affect Tenant’s other rights under this Lease, and (3) do not increase the rent and other sums to be paid by Tenant, then Landlord may submit
to Tenant an amendment to this Lease incorporating such required modifications, and Tenant shall execute, acknowledge and deliver such
amendment to Landlord within ten (10) days after Tenant’s receipt thereof.
	 
	 	        D.    Tenant agrees that it will from time-to-time upon request by Landlord execute and deliver to such persons as Landlord shall request a statement
in recordable form certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is
in full force and effect as so modified), stating the dates to which rent and other charges payable under this Lease have been paid, stating
that Landlord is not in default hereunder (or if Tenant alleges a default stating the nature of such alleged default) and further stating such
other matters as Landlord shall reasonably require. Tenant agrees periodically to furnish within ten (10) days after so requested by Landlord,
ground lessor or the holder of any deed of trust, mortgage or security agreement covering the Building, the Property, or any interest of
Landlord therein, a certificate signed by Tenant certifying (a) that this Lease is in full force and effect and unmodified (or if there have
been modifications, that the same is in full force and effect as modified and stating the modifications), (b) as to the Commencement Date and
the date through which Base Rent and Tenant’s Additional Rent have been paid, (c) that Tenant has accepted possession of the Premises and that
any improvements required by the terms of this Lease to be made by Landlord have been completed to the satisfaction of Tenant, (d) that except
as stated in the

39

 

		
	 	certificate no rent has been paid more than thirty (30) days in advance of its due date, (e) that the address for notices to
be sent to Tenant is as set forth in this Lease (or has been changed by notice duly given and is as set forth in the certificate), (f) that
except as stated in the certificate, Tenant, as of the date of such certificate, has no charge, lien, or claim of offset against rent due or to
become due, (g) that except as stated in the certificate, Landlord is not then in default under this Lease, (h) as to the amount of the
Approximate Rentable Area of the Premises then occupied by Tenant, (i) that there are no renewal or extension options, purchase options, rights
of first refusal or the like in favor of Tenant except as set forth in this Lease, (j) the amount and nature of accounts payable to Landlord
under terms of this Lease, and (k) as to such other matters as may be requested by Landlord or ground lessor or the holder of any such deed of
trust, mortgage or security agreement. Any such certificate may be relied upon by any ground lessor, prospective purchaser, secured party,
mortgagee or any beneficiary under any mortgage, deed of trust on the Building or the Property or any part thereof or interest of Landlord
therein.
	 
	 	        E.    Landlord shall use commercially reasonable efforts to secure for Tenant a non-disturbance agreement (recognizing Tenant’s rights under this
Lease) from the holder of the Mortgage currently encumbering the Building and/or the Land in the form set forth in Exhibit H. Landlord shall
use commercially reasonable efforts to secure for Tenant a non-disturbance agreement (recognizing Tenant’s rights under this Lease) from the
holder of each Mortgage hereafter encumbering the Building and/or the Land on such holder’s standard form non-disturbance agreement.

		
	 	        29.     Notice. Any notice required or permitted to be given under this Lease or by law shall be deemed to have been given if it is written and
delivered in person or mailed by Registered or Certified mail, postage prepaid, or sent by a nationally recognized overnight delivery service to the party
who is to receive such notice at the address specified in Section 1.Y. of this Lease. When so mailed, the notice shall be deemed to have been given two
(2) Business Days after the date it was mailed. When sent by overnight delivery service, the notice shall be deemed to have been given on the next
Business Day after deposit with such overnight delivery service. The address specified in Section 1.Y. of this Lease may be changed from time to time by
giving written notice thereof to the other party. If Landlord or the holder of any Mortgage notifies Tenant that a copy of any notice to Landlord shall be
sent to such holder at a specified address, then Tenant shall send (in the manner specified in this Section and at the same time such notice is sent to
Landlord) a copy of each such notice to such holder, and no such notice shall be considered duly sent unless such copy is so sent to such holder. Any such
holder shall have thirty (30) days after receipt of such notice to cure any Landlord default before Tenant may exercise any remedy. Any cure of Landlord’s
default by such holder shall be treated as performance by Landlord.
	 
	 	        30.     [Reserved].
	 
	 	        31.    Surrender of Premises. Upon the termination, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession
without termination of the Lease, Tenant will at once surrender possession and vacate the Premises, together with all Leasehold Improvements (except those
Leasehold Improvements Tenant is required to remove pursuant to Section 8 hereof), to Landlord in good condition and repair, ordinary wear and tear

40

 

		
	 	excepted; conditions existing because of Tenant’s failure to perform maintenance, repairs or replacements as required of Tenant under this Lease shall not
be deemed “reasonable wear and tear.” Tenant shall surrender to Landlord all keys to the Premises and make known to Landlord the explanation of all
combination locks which Tenant is permitted to leave on the Premises. Subject to Landlord’s rights under Section 23 hereof, if Tenant fails to remove any
of Tenant’s Property within one (1) day after the termination of this Lease, or Tenant’s right to possession hereunder, Landlord, at Tenant’s sole cost and
expenses, shall be entitled to remove and/or store such Tenant’s Property and Landlord shall be in no event be responsible for the value, preservation or
safekeeping thereof. Tenant shall pay Landlord, upon demand, any and all reasonable expenses caused by such removal and all storage charges against such
property so long as the same shall be in possession of Landlord or under the control of Landlord. In addition, if Tenant fails to remove any Tenant’s
Property from the Premises or storage, as the case may be, within ten (10) days after written notice from Landlord, Landlord, at its option, may deem all
or any part of such Tenant’s Property to have been abandoned by Tenant and title thereof shall immediately pass to Landlord under this Lease as by a bill
of sale.

		
	 	        32.    Rights Reserved to Landlord. Landlord reserves the following rights, exercisable without notice, except as provided herein, and without
liability to Tenant for damage or injury to property, person or business and without affecting an eviction or disturbance of Tenant’s use or possession or
giving rise to any claim for setoff or abatement of rent or affecting any of Tenant’s obligations under this Lease: (1) upon thirty (30) days prior notice
to change the name or street address of the Building; (2) to install and maintain signs on the exterior and interior of the Building; (3) to designate and
approve window coverings to present a uniform exterior appearance; (4) to make any decorations, alterations, additions, improvements to the Building or
Property, or any part thereof (including, with prior notice, the Premises) which Landlord shall desire, or deem necessary for the safety, protection,
preservation or improvement of the Building or Property, or as Landlord may be required to do by law; (5) subject to Section 12 and with due regard for
Tenant’s security concerns as an operating bank, to have access to the Premises at reasonable hours to perform its duties and obligations and to exercise
its rights under this Lease; (6) to retain at all times and to use in appropriate instances, pass keys to all locks within and to the Premises; (7) to
approve the weight, size, or location of heavy equipment, or articles within the Premises; (8) to close or restrict access to the Building at all times
other than Normal Business Hours subject to Tenant’s right to admittance at all times under such regulations as Landlord may prescribe from time to time,
or to temporarily close any of the entrances to the Building; provided Landlord shall have the right to restrict or prohibit access to the Building or the
Premises at any time Landlord determines it is necessary to do so to minimize the risk of injuries or death to persons or damage to property; (9) to change
the arrangement and/or location of entrances of Common Area passageways, doors and doorways, corridors, elevators, stairs, toilets and public parts of the
Building or Property; (10) to regulate access to telephone, electrical and other utility closets in the Building and to require use of designated
contractors for any work involving access to the same; (11) if Tenant has vacated the Premises during the last six (6) months of the Lease Term, to perform
additions, alterations and improvements to the Premises in connection with a reletting or anticipated reletting thereof without being responsible or liable
for the value or preservation of any then existing improvements to the Premises; and (12) subject to the restrictions set forth in Paragraph II of Exhibit
E (concerning Tenant’s Exclusive Use), to grant to anyone the exclusive right to conduct any business or undertaking in the Building provided Landlord’s
exercise of its

41

 

		
	 	rights under this clause 12, shall not be deemed to prohibit Tenant from the operation of its business in the Premises and shall not
constitute a constructive eviction. Notwithstanding anything contained in this Lease to the contrary, with respect to items (2), (4), (8) and (9) above,
Landlord shall not materially adversely affect Tenant’s use or visibility of or access to the Premises (which shall at all times have an entrance on and
windows visible from the street) or signage, subject, however, in all cases to governmental requirements, emergencies and/or temporary repair or
maintenance activities (it being understood that the foregoing shall not be deemed to require Landlord to require Landlord to employ contractors or labor
at overtime or other premium pay rates or to incur any other overtime costs or expenses.

		
	 	        33.     Miscellaneous.

		
	 	        A.    If any term or provision of this Lease, or the application thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and enforced
to the fullest extent permitted by law.
	 
	 	        B.    Tenant agrees not to record this Lease or any short form or memorandum hereof.
	 
	 	        C.    This Lease and the rights and obligations of the parties hereto shall be interpreted, construed, and enforced in accordance with the laws of
the state in which the Building is located.
	 
	 	        D.    Events of “Force Majeure” shall include strikes, riots, acts of God, shortages of labor or materials, war, governmental laws, regulations or
restrictions, governmental act or failure to act, or any other cause whatsoever beyond the control of Landlord or Tenant, as the case may be.
Whenever a period of time is herein prescribed for the taking of any action by Landlord or Tenant (other than the payment of Rent and all
other such sums of money as shall become due hereunder), such party shall not be liable or responsible for, there shall be excluded from the
computation of such period of time, any delays due to events of Force Majeure.
	 
	 	        E.    Except as expressly otherwise herein provided, with respect to all required acts of Tenant or Landlord, time is of the essence of this Lease.
	 
	 	        F.    Landlord shall have the right to transfer and assign, in whole or in part, all of its rights and obligations hereunder and in the Building and
Property referred to herein, and in such event and upon such transfer Landlord shall be released from any further obligations hereunder, and
Tenant agrees to look solely to such successor in interest of Landlord for the performance of such obligations.
	 
	 	        G.    Tenant hereby represents to Landlord that it has dealt directly with and only with the Broker as a broker in connection with this Lease.
Landlord shall pay a fee to

42

 

		
	 	Broker pursuant to a separate agreement. Landlord and Tenant hereby indemnify and hold each other harmless against
any loss, claim, expense or liability with respect to any commissions or brokerage fees claimed by any other broker or finder on account of the
execution and/or renewal of this Lease due to any action of the indemnifying party.
	 
	 	        H.    If there is more than one Tenant, or if Tenant as such is comprised of more than one person or entity, the obligations hereunder imposed upon
Tenant shall be joint and several obligations of all such parties. All notices, payments, and agreements given or made by, with or to any one
of such persons or entities shall be deemed to have been given or made by, with or to all of them.
	 
	 	        I.    The individual signing this Lease on behalf of each of Tenant and Landlord represents (1) that such individual is duly authorized to execute or
attest and deliver this Lease on behalf of such party in accordance with the organizational documents of such party; (2) that this Lease is
binding upon such party; (3) that such party is duly organized and legally existing in the state of its organization, and is qualified to do
business in the state in which the Premises is located.
	 
	 	        J.    Tenant acknowledges that the financial capability of Tenant to perform its obligations hereunder is material to Landlord and that Landlord
would not enter into this Lease but for its belief, based on its review of Tenant’s financial statements, that Tenant is capable of performing
such financial obligations. Tenant hereby represents, warrants and certifies to Landlord that its financial statements previously furnished to
Landlord were at the time given true and correct in all material respects and that there have been no material subsequent changes thereto as of
the date of this Lease.
	 
	 	        K.     Notwithstanding anything to the contrary contained in this Lease, the expiration of the Lease Term, whether by lapse of time or otherwise,
shall not relieve Tenant from Tenant’s obligations accruing prior to the expiration of the Lease Term, and such obligations shall survive any
such expiration or other termination of the Lease Term.
	 
	 	        L.    Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only, and the delivery hereof does not constitute an offer to Tenant
or an option. This Lease shall not be effective until an original of this Lease executed by both Landlord and Tenant and an original Guaranty,
if applicable, executed by each Guarantor is delivered to and accepted by Landlord, and this Lease has been approved by Landlord’s mortgagee,
if required.
	 
	 	        M.    Landlord and Tenant understand, agree and acknowledge that (i) this Lease has been freely negotiated by both parties; and (ii) in any
controversy, dispute or contest over the meaning, interpretation, validity, or enforceability of this Lease or any of its terms or conditions,
there shall be not inference, presumption, or conclusion drawn whatsoever against either party by virtue of that party having drafted this
Lease or any portion thereof.
	 
	 	        N.    The headings and titles to the paragraphs of this Lease are for convenience only and shall have no affect upon the construction or
interpretation of any part hereof.

43

 

		
	 	        O.    Receipt by Landlord of Tenant’s keys to the Premises shall not constitute an acceptance of surrender of the Premises.
	 
	 	        P.    LANDLORD, TENANT, ALL GUARANTORS AND ALL GENERAL PARTNERS EACH WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT IN
CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT HEREUNDER, TENANT’S
USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM OF INJURY OR DAMAGE. TENANT CONSENTS TO SERVICE OF PROCESS AND ANY PLEADING RELATING TO ANY
SUCH ACTION AT THE ADDRESS OF TENANT’S REGISTERED AGENT FOR SERVICE OF PROCESS IN THE COMMONWEALTH OF VIRGINIA AS FOLLOWS: Paul Harbolick;
Alliance Bank, 12735 Shops Lane, Fairfax, VA 22033 TENANT WAIVES ANY RIGHT TO RAISE ANY NON-COMPULSORY COUNTERCLAIM WITHIN ANY PROCEEDING
INSTITUTED BY LANDLORD AGAINST TENANT. LANDLORD, TENANT, ALL GUARANTORS AND ALL GENERAL PARTNERS EACH WAIVES ANY OBJECTION TO THE VENUE OF ANY
ACTION FILED IN ANY COURT SITUATED IN THE JURISDICTION IN WHICH THE BUILDING IS LOCATED, AND WAIVES ANY RIGHT, CLAIM OR POWER, UNDER THE
DOCTRINE OF FORUM NON CONVENIENS OR OTHERWISE, TO TRANSFER ANY SUCH ACTION TO ANY OTHER COURT.
	 
	 	        Q.    For purposes of Section 55-2, Code of Virginia (1950), as amended, this Lease is and shall be deemed to be a deed of lease. For purposes of
Section 55-218.1, Code of Virginia (1950), as amended, Landlord’s resident agent is William J. Bridge, Commonwealth Legal Services Corporation,
4701 Cox Road, Suite 301, Glen Allen, Virginia 23060.
	 
	 	        R.    This Lease may be executed in multiple counterparts, each of which shall be deemed an original and all of which together constitute one and the
same document. Faxed signatures shall have the same binding effect as original signatures.

		
	 	        34.    Entire Agreement. This Lease, including the following Exhibits:

	 
	Exhibit A-1-Outline and Location of Premises
	Exhibit A-2-Location of ATM
	Exhibit A-3-Locations of Tenant’s Signs
	Exhibit B-Rules and Regulations
	Exhibit C-Payment of Basic Costs and Taxes
	Exhibit D-Work Letter
	Exhibit E-Additional Provisions
	Exhibit F-Commencement Letter
	Exhibit G-Parking
	Exhibit H – Form of Non Disturbance Agreement
	Exhibit I – Tenant’s Sign Plans

44

 

		
	 	constitutes the entire agreement between the parties hereto with respect to the subject matter of this Lease and supersedes all prior agreements and
understandings between the parties related to the Premises, including all lease proposals, letters of intent and similar documents. Tenant expressly
acknowledges and agrees that Landlord has not made and is not making, and Tenant, in executing and delivering this Lease, is not relying upon, any
warranties, representations, promises or statements, except to the extent that the same are expressly set forth in this Lease. All understandings and
agreements heretofore had between the parties are merged in this Lease which alone fully and completely expresses the agreement of the parties, neither
party relying upon any statement or representation not embodied in this Lease. This Lease may be modified only by a written agreement signed by Landlord
and Tenant. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness
for a particular purpose or of any other kind arising out of this Lease, all of which are hereby waived by Tenant, and that there are no warranties which
extend beyond those expressly set forth in this Lease.
	 
	 	        35.    LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT SPECIFICALLY ADDRESSED HEREIN OR PURSUANT TO THE ORDER OF A COURT OF COMPETENT JURISDICTION,
TENANT SHALL NOT HAVE THE RIGHT TO AN ABATEMENT OF RENT OR TO TERMINATE THIS LEASE AS A RESULT OF LANDLORD’S DEFAULT AS TO ANY COVENANT OR AGREEMENT
CONTAINED IN THIS LEASE OR AS A RESULT OF THE BREACH OF ANY PROMISE OR INDUCEMENT IN CONNECTION HEREWITH, WHETHER IN THIS LEASE OR ELSEWHERE AND TENANT
HEREBY WAIVES SUCH REMEDIES OF ABATEMENT OF RENT AND TERMINATION. EXCEPT TO THE EXTENT SPECIFICALLY ADDRESSED HEREIN OR PURSUANT TO THE ORDER OF A COURT OF
COMPETENT JURISDICTION, TENANT HEREBY AGREES THAT TENANT’S REMEDIES FOR DEFAULT HEREUNDER OR IN ANY WAY ARISING IN CONNECTION WITH THIS LEASE INCLUDING ANY
BREACH OF ANY PROMISE OR INDUCEMENT OR WARRANTY, EXPRESSED OR IMPLIED, SHALL BE LIMITED TO SUIT FOR DIRECT AND PROXIMATE DAMAGES PROVIDED THAT TENANT HAS
GIVEN THE NOTICES AS HEREINAFTER REQUIRED. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD TO TENANT FOR ANY
DEFAULT BY LANDLORD UNDER THIS LEASE SHALL BE LIMITED TO THE INTEREST OF LANDLORD IN THE BUILDING AND THE PROPERTY AND TENANT AGREES TO LOOK SOLELY TO
LANDLORD’S INTEREST IN THE BUILDING AND THE PROPERTY FOR THE RECOVERY OF ANY JUDGMENT AGAINST LANDLORD, IT BEING INTENDED THAT LANDLORD SHALL NOT BE
PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY. TENANT HEREBY COVENANTS THAT, PRIOR TO THE FILING OF ANY SUIT FOR DIRECT AND PROXIMATE DAMAGES, IT SHALL
GIVE LANDLORD AND ALL MORTGAGEES WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES OR DEED OF TRUST LIENS ON THE PROPERTY, BUILDING OR PREMISES (“LANDLORD
MORTGAGEES”) NOTICE AND REASONABLE TIME TO CURE ANY ALLEGED DEFAULT BY LANDLORD.

45

 

		
	 	        IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple original counterparts as of the day and year first above written.

	 	 	 
	WITNESS/ATTEST	 	
LANDLORD:
 
	 	 	
BALLSTON 4501, L.L.C., a Delaware
	 	 	
limited liability company
 
	 	 	
By:        Transwestern
Ballston, L.L.C.,
	 	 	
               its managing member
 
	 	 	
By:        ASLAN Realty Partners, L.P., its
	 	 	
              sole member
 
	 	 	
By:        ASLAN GP, L.L.C., its general
	 	 	
              partner

	 	 	 
	By: __________________	 	
By: _________________________
	       Name:_____________	 	      
Name:____________________
	       Title:______________	 	
       Title: Managing Director

	 	 	 	 	 
	 	 	

	By:	CG BALLSTON, L.L.C., its member
 
	 	 	 	By:	  Connecticut General Life
	 	 	 	 	   Insurance Company, its sole
	 	 	 	 	   member
 
	 	 	 	 	By: CIGNA Investments, Inc., a
	 	 	 	 	        Delaware Corporation
 
	By: __________________	 	 	 	By: _______________________
	       Name:_____________	 	 	 	      
Name:__________________
	       Title:______________	 	 	 	       Title:___________________

	 	 	 
	WITNESS/ATTEST	 	
TENANT:
 
	 	 	
ALLIANCE BANK CORPORATION, a
	 	 	
Virginia banking corporation
 
	By: __________________	 	
By: ______________________________
	       Name:_____________	 	
      
Name:_________________________
	       Title:______________	 	
       Title:__________________________

46

 

EXHIBIT A-1

OUTLINE AND LOCATION OF PREMISES

     This Exhibit is attached to and made a part of the Lease dated ___________,
2003 by and between BALLSTON 4501, L.L.C., a Delaware limited liability company
(“Landlord”) and ALLIANCE BANK CORPORATION, a Virginia banking corporation
(“Tenant”) for space in the Building located at 4501 North Fairfax Drive,
Arlington, Virginia 22203.

A-1-1

 

EXHIBIT A-2

LOCATION OF ATM EQUIPMENT

A-2-1

 

EXHIBIT A-3

LOCATIONS OF TENANT’S SIGNS

 

 

EXHIBIT B

RULES AND REGULATIONS

     The following rules and regulations shall apply, where applicable, to the
Premises, the Building, the parking facility associated therewith (if any), the
Property and the appurtenances thereto:

     1. Sidewalks, entrances, passageways, courts, corridors, vestibules,
halls, elevators and stairways in and about the Building shall not be
obstructed nor shall objects be placed against glass partitions, doors or
windows which would be unsightly from the Building’s corridors from the
exterior of the Building.

     2. Plumbing, fixtures and appliances shall be used for only the purpose
for which they were designed and no foreign substance of any kind whatsoever
shall be thrown or placed therein. Damage resulting to any such fixtures or
appliances from misuse by Tenant or its agents, employees or invitees, shall be
paid for by Tenant and Landlord shall not in any case be responsible therefor.

     3. Any sign, lettering, picture, notice, advertisement installed within
the Premises which is visible from the public corridors within the Building
shall be installed in such manner, and be of such character and style, as
Landlord shall approve, in writing in its reasonable discretion. No sign,
lettering, picture, notice or advertisement shall be placed on any outside
window or door or in a position to be visible from outside the Building. No
nails, hooks or screws (except for customary artwork or wall hangings) shall be
driven or inserted into any part of the Premises or Building except by Building
maintenance personnel, nor shall any part of the Building be defaced or damaged
by Tenant.

     4. Tenant shall not place any additional lock or locks on any door in the
Premises or Building without Landlord’s prior written consent. A reasonable
number of keys to the locks on the doors in the Premises shall be furnished by
Landlord to Tenant at the cost of Tenant, and Tenant shall not have any
duplicate keys made. All keys and passes shall be returned to Landlord at the
expiration or earlier termination of this Lease.

     5. Tenant shall refer all contractors, contractors representatives and
installation technicians to Landlord for Landlord’s supervision, approval and
control before the performance of any contractual services. This provision
shall apply to all work performed in the Building including, but not limited to
installation of telephones, telegraph equipment, electrical devices and
attachments, doors, entranceways, and any and all installations of every nature
affecting floors, walls, woodwork, window trim, ceilings, equipment and any
other physical portion of the Building. Tenant shall not waste electricity,
water or air conditioning. All controls located outside of the Premises shall
be adjusted only by Building personnel.

     6. Movement in or out of the Building of furniture or office equipment, or
dispatch or receipt by Tenant of any merchandise or materials which require the
use of elevators, stairways, lobby areas, or loading dock areas, shall be
restricted to hours designated by Landlord. Tenant

B-1

 

must seek Landlord’s prior approval by providing in writing a detailed
listing of such activity. If approved by Landlord, such activity shall be
under the supervision of Landlord and performed in the manner stated by
Landlord. Landlord may in its reasonable discretion, prohibit any article,
equipment or any other item from being brought into the Building. Tenant is to
assume all risk for damage to articles moved and injury to persons resulting
from such activity. If any equipment, property and/or personnel of Landlord or
of any other tenant is damaged or injured as a result of or in connection with
such activity, Tenant shall be solely liable for any and all damage or loss
resulting therefrom.

     7. All corridor doors, when not in use, shall remain closed. Tenant shall
cause all doors to the Premises to be closed and securely locked before leaving
the Building at the end of the day.

     8. Tenant shall keep all electrical and mechanical apparatus owned by
Tenant free of vibration, noise and airwaves which may be transmitted beyond
the Premises.

     9. Canvassing, soliciting and peddling in or about the Building or
Property is prohibited. Tenant shall cooperate and use its best efforts to
prevent the same.

     10. Tenant shall not use the Premises in any manner which would overload
the standard heating, ventilating or air conditioning systems of the Building.

     11. Tenant shall not utilize any equipment or apparatus in such manner as
to create any magnetic fields or waves which adversely affect or interfere with
the operation of any systems or equipment in the Building or Property.

     12. Bicycles and other vehicles are not permitted inside or on the
walkways outside the Building, except in those areas specifically designated by
Landlord for such purposes.

     13. Tenant shall not operate or permit to be operated on the Premises any
coin or token operated vending machine or similar device (including, without
limitation, telephones, lockers, toilets, scales, amusements devices and
machines for sale of beverages, foods, candy, cigarettes or other goods),
except for those vending machines or similar devices which are for the sole and
exclusive use of Tenant’s employees, and then only if such operation does not
violate the lease of any other tenant in the Building.

     14. Tenant shall utilize the termite and pest extermination service
designated by Landlord to control termites and pests in the Premises. Except
as included in Basic Costs, Tenant shall bear the cost and expense of such
extermination services.

     15. Tenant shall not open or permit to be opened any window in the
Premises. This provision shall not be construed as limiting access of Tenant
to a balcony (if any) adjoining the Premises.

     16. To the extent permitted by law, Tenant shall not permit picketing or
other union activity involving its employees or agents in the Building or on
the Property, except in those locations and subject to time and other
constraints as to which Landlord may give its prior written consent, which
consent may be withheld in Landlord’ sole discretion.

B-2

 

     17. Tenant shall comply with all applicable laws, ordinances, governmental
orders or regulations and applicable orders or directions from any public
office or body having jurisdiction, with respect to the Premises, the Building,
the Property and their respective use or occupancy thereof. Tenant shall not
make or permit any use of the Premises, the Building or the Property,
respectively, which is directly or indirectly forbidden by law, ordinance,
governmental regulation or order, or direction of applicable public authority,
or which may be dangerous to person or property.

     18. Tenant shall not use or occupy the Premises in any manner or for any
purpose which would injure the reputation or impair the present or future value
of the Premises, the Building or the Property; without limiting the foregoing,
Tenant shall not use or permit the Premises or any portion thereof to be used
for lodging, sleeping or for any illegal purpose.

     19. All deliveries to or from the Premises shall be made only at times, in
the areas and through the entrances and exits designated for such purposes by
Landlord. Tenant shall not permit the process of receiving deliveries to or
from the Premises outside of said areas or in a manner which may interfere with
the use by any other tenant of its premises or any common areas, any pedestrian
use of such area, or any use which is inconsistent with good business practice.

     20. Tenant shall carry out Tenant’s permitted repair, maintenance,
alterations, and improvements in the Premises only during times agreed to in
advance by Landlord and in a manner which will not interfere with the rights of
other tenants in the Building.

     21. Landlord may from time to time adopt appropriate systems and
procedures for the security or safety of the Building, its occupants, entry and
use, or its contents. Tenant, Tenant’s agents, employees, contractors, guests
and invitees shall comply with Landlord’s reasonable requirements thereto.

     22. Landlord shall have the right to prohibit the use of the name of the
Building or any other publicity by Tenant that in Landlord’s opinion may tend
to impair the reputation of the Building or its desirability for Landlord or
its other tenants. Upon written notice from Landlord, Tenant will refrain from
and/or discontinue such publicity immediately.

     23. Neither Tenant nor any of its employees, agents, contractors, invitees
or customers shall smoke in any area designated by Landlord (whether through
the posting of a “no smoking” sign or otherwise) as a “no smoking” area. In no
event shall Tenant or any of its employees, agents, contractors, invitees or
customers smoke in the hallways or bathrooms of the Building. Landlord
reserves the right to designate, from time to time, additional areas of the
Building and the Property as “no smoking” areas and to designate the entire
Building and the Property as a “no smoking” area.

     24. Tenant shall replace promptly any cracked or broken glass in the
Premises (including without limitation all windows, display cases, countertops
and doors) with glass of like color, kind and quality.

B-3

 

     25. Tenant shall not operate its business in a manner which is commonly
known as a “discount house”, “wholesale house”, “cut-rate store”, or “outlet
store”, and shall not conduct any “fire sale,” “going out of business sale,”
“bankruptcy sale” or auction within the Premises. The Premises shall not be
used for conducting any barter, trade, or exchange of goods, or sale through
promotional give-away gimmicks, or any business involving the sale of
second-hand goods, insurance salvage stock or fire sale stock, and shall not
be used for any auction or pawnshop business, any fire sale, bankruptcy sale,
going-out-of-business sale, moving sale, bulk sale or any other business which,
because of merchandising methods or otherwise, would tend to lower the
first-class character of the Building.

     26. Tenant shall keep any garbage, trash, rubbish or other refuse in
rat-proof containers within the interior of the Premises; deposit daily such
garbage, trash, rubbish and refuse in receptacles designated by Landlord; and
enclose and/or shield such receptacles in a manner approved by Landlord.

     27. Tenant shall not sell, display or offer for sale any roach clip, water
pipe, bong, coke spoon, cigarette papers, hypodermic syringe or other
paraphernalia which in Landlord’s opinion are commonly used in connection with
illegal drugs, or any pornographic, lewd, suggestive or “adult” newspaper,
book, magazine, film, picture or merchandise of any kind.

     28. Tenant shall not install burglar bars in or to the Premises without
Landlord’s prior approval and if requested to do so by Landlord, install a
locking system compatible with the locking system being used by Landlord at the
Building.

B-4

 

EXHIBIT C

PAYMENT OF BASIC COSTS AND TAXES

     This Exhibit is attached to and made a part of the Lease dated ___________,
2003 by and between BALLSTON 4501, L.L.C., a Delaware limited liability company
(“Landlord") and ALLIANCE BANK CORPORATION, a Virginia banking corporation
(“Tenant") for space in the Building located at 4501 North Fairfax Drive,
Arlington, Virginia 22203.

     A.     During each calendar year, or portion thereof, falling within the Lease
Term, Tenant shall pay to Landlord as Additional Rent hereunder Tenant’s Pro
Rata Share with respect to Basic Costs and Tenant’s Pro Rata Share with respect
to Taxes (each as defined below) for the applicable calendar year. Prior to
January 1 of each calendar year during the Lease Term, or as soon thereafter as
practical, Landlord shall make a good faith reasonable estimate of Basic Costs
and Taxes for the applicable full or partial calendar year and Tenant’s Pro
Rata Share thereof. On or before the first day of each month during such
calendar year, Tenant shall pay Landlord, as Additional Rent, a monthly
installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s
estimate with respect to Basic Costs and Tenant’s Pro Rata Share with respect
to Taxes. Landlord shall have the right from time to time during any such
calendar year to revise the estimate of Basic Costs for such year and provide
Tenant with a revised statement therefor (provided, however, Landlord agrees
that Landlord shall not issue a revised statement more than twice in any
calendar year), and thereafter the amount Tenant shall pay each month shall be
based upon such revised estimate. If Landlord does not provide Tenant with an
estimate of the Basic Costs and Taxes by January 1 of any calendar year, Tenant
shall continue to pay a monthly installment based on the previous year’s
estimate until such time as Landlord provides Tenant with an estimate of Basic
Costs for the current year. Upon receipt of such current year’s estimate, an
adjustment shall be made for any month during the current year with respect to
which Tenant paid monthly installments of Additional Rent based on the previous
year’s estimate. Tenant shall pay Landlord for any underpayment within thirty
(30) days after Tenant’s receipt of Landlord’s written demand. Any overpayment
in excess of the equivalent of one (1) month’s Base Rent shall, at Landlord’s
option, be refunded to Tenant or credited against the installment(s) of
Additional Rent next coming due under the Lease. Any overpayment in an amount
equal to or less than the equivalent of one (1) month’s Base Rent shall, at
Landlord’s option, be refunded to Tenant or credited against the installment of
Additional Rent due for the month immediately following the furnishing of such
estimate. Any amount paid by Tenant based on any estimate shall be subject to
adjustment pursuant to Paragraph B below, when actual Basic Costs and Taxes are
determined for such calendar year.

     B.     As soon as is practical following the end of each calendar year during
the Lease Term, Landlord shall furnish to Tenant a statement of Landlord’s
actual Basic Costs and Taxes for the previous calendar year. If for any
calendar year the Additional Rent collected for the prior year, as a result of
Landlord’s estimate of Basic Costs and Taxes, is in excess of Tenant’s actual
Pro Rata Share with respect to Basic Costs and Tenant’s Pro Rata Share with
respect to Taxes for such prior year, then within thirty (30) days following
Landlord’s determination, Landlord shall refund to Tenant any overpayment (or,
if the Lease has not been terminated, at Landlord’s option

C-1

 

apply such amount against Additional Rent due or to become due hereunder).
Likewise, Tenant shall pay to Landlord, within thirty (30) days after Tenant’s
receipt of Landlord’s written demand, any underpayment with respect to the
prior year whether or not the Lease has terminated prior to receipt by Tenant
of a statement for such underpayment, it being understood that this clause
shall survive the expiration of the Lease. Provided that Tenant is not in
default and has timely paid the amount set forth in the applicable statement,
Tenant (through an independent certified public accountant (on behalf of
Tenant) who is hired by Tenant on a non-contingent fee basis, offers a full
range of accounting services and is otherwise approved by Landlord (which
approval shall not be unreasonably withheld provided that such accountant
agrees not to solicit tenants of the Building for similar services), shall have
the right, during regular business hours, at the management office for the
Building, and after giving at least thirty (30) days’ advance written notice to
Landlord, to commence to have Landlord’s books and records related to Basic
Costs for the immediately preceding calendar year reviewed (and if so
commenced, to expeditiously and diligently pursue such review to completion),
provided that such review shall be concluded by November 1 of the year
following the year to which such review relates and that substantially all of
the communications with Landlord (and Landlord’s representatives) in connection
with the review shall be conducted by an employee of Tenant; or, at Landlord’s
sole discretion and in lieu of such review, Landlord shall provide Tenant with
an audited statement, the expense of which shall be included within the
definition of Basic Costs. If the amounts paid by Tenant to Landlord on
account of increases in Basic Costs (a) exceed the amounts to which Landlord is
entitled hereunder, then Landlord shall, upon its final determination, credit
the amount of such excess toward the next monthly payment(s) of Basic Costs due
hereunder, or (b) are less than the amounts to which Landlord is entitled
hereunder, then Tenant shall pay such deficiency as additional rent. All costs
and expenses of any such review or audited statement shall be paid by Tenant;
provided, however, that if the aggregate amount of Basic Costs set forth in
such statement was overstated by Landlord by more than five percent (5%),
Landlord shall reimburse Tenant for the commercially reasonable, out-of-pocket
hourly or flat fee costs and expenses paid by Tenant in connection with
Tenant’s review. Any and all information obtained through any review
(including, without limitation, any matters pertaining to Landlord, its
managing agent or the Building), and any compromise, settlement or adjustment
that may be proposed or reached between Landlord and Tenant, shall be held in
strict confidence, and neither Tenant nor any of Tenant’s agents shall disclose
any such information to any person or entity other than a Permitted Recipient
on a need-to-know basis. Tenant shall cause any of Tenant’s agents (including
its auditor and any of its brokers) to be similarly bound by this subsection.
A “Permitted Recipient” shall be the officers, partners and senior level
employees of Tenant who are involved in lease administration, Tenant’s
certified public accountants who have responsibilities related to Basic Costs,
any employees of Tenant’s auditor involved with the review, or any person or
entity to whom disclosure is required by applicable judicial or governmental
authority. Prior to disclosing any such information to any Permitted Recipient
(including its auditor), Tenant shall instruct such Permitted Recipient to
abide by this confidentiality provision. Notwithstanding anything herein to
the contrary, if Tenant does not notify Landlord in writing of any objection to
an annual Basic Costs statement within sixty (60) days after receipt thereof,
then Tenant shall be deemed to have waived any such objection and shall have no
right to review pursuant to this subsection.

     C.     “Basic Costs” shall mean all direct and indirect costs, expenses paid
and disbursements of every kind (subject to the limitations set forth below)
which Landlord incurs,

C-2

 

pays or becomes obligated to pay in each calendar year in connection with
operating, maintaining, repairing, owning and managing the Building and the
Property including but not limited to, the following:

		
	 	     (1) All labor costs for all persons performing services required or
utilized in connection with the operation, repair, replacement and
maintenance of and control of access to the Building and the Property,
including but not limited to amounts incurred for wages, salaries and
other compensation for services, professional training, payroll, social
security, unemployment and other similar taxes, workers’ compensation
insurance, uniforms, training, disability benefits, pensions,
hospitalization, retirement plans, group insurance or any other similar
or like expenses or benefits.
	 
	 	     (2) All reasonable management fees based on arms-length transactions
for similar class buildings in the Ballston, Virginia area (which, for
the initial Lease Term only, shall be deemed a fee of not more than four
percent (4%) of the gross revenues of the Building less amounts that
would have been received had there been no rental abatements or
concessions), the cost of equipping and maintaining a management office
(of reasonable and customary size) at the Building (including, without
limitation, rental therefor), accounting services, legal fees not
attributable to leasing and collection activity, and all other
administrative costs relating to the Building and the Property.
	 
	 	     (3) All rent and/or purchase costs of materials, supplies, tools and
equipment used in the operation, repair, replacement and maintenance and
the control of access to the Building and the Property.
	 
	 	     (4) All amounts charged to Landlord by contractors and/or suppliers
for services, replacement parts, components, materials, equipment and
supplies furnished in connection with the operation, repair, maintenance,
replacement and control of access to any part of the Building, or the
Property generally, including the heating, air conditioning, ventilating,
plumbing. electrical, elevator and other systems and equipment of the
Building and the garage. At Landlord’s option, major repair items may be
amortized over a period of up to five (5) years or the longest period
permitted.
	 
	 	     (5) All premiums and deductibles paid by Landlord for fire, flood
and extended insurance coverage, earthquake and extended coverage
insurance, liability and extended coverage insurance, Rent loss
insurance, elevator insurance, boiler insurance and other insurance
customarily carried from time to time by landlords of comparable office
buildings or required to be carried by Landlord’s mortgagee.
	 
	 	     (6) Charges for all utilities, including but not limited to water,
electricity, gas and sewer, but excluding those electrical charges for
which tenants are individually responsible and those utilities provided
for exclusive use of “full service” tenants in the Building.
	 
	 	     (7) All landscape expenses, costs of repairing, resurfacing and
striping and other operating costs of the parking areas and facilities of
the Property, if any.

C-3

 

		
	 	     (8) Cost of all maintenance service agreements, including those for
equipment, alarm service, window cleaning, drapery or mini-blind
cleaning, janitorial services, metal refinishing, pest control, uniform
supply, landscaping and any parking equipment.

		
	 	     (9) Cost of all other repairs, replacements and general maintenance
of the Property and Building neither specified above nor directly billed
to tenants, including the cost of maintaining all interior Common Areas
including lobbies, multi-tenant hallways, restrooms and service areas.

		
	 	     (10) The amortized cost of capital improvements made to the Building
or the Property which are (a) primarily for the purpose of reducing
operating expense costs or otherwise improving the operating efficiency
of the Property or Building; or (b) required to comply with any laws,
rules or regulations of any governmental authority or a requirement of
Landlord’s insurance carrier. The cost of such capital improvements
shall be amortized over the respective useful life of such capital
improvements in accordance with generally accepted accounting principles,
consistently applied, and shall, at Landlord’s option, include interest
at a rate that is reasonably equivalent to the interest rate that
Landlord would be required to pay to finance the cost of the capital
improvement in question as of the date such capital improvement is
performed, provided if the payback period for any capital improvement is
less than five (5) years, Landlord may amortize the cost of such capital
improvement over the payback period.
	 
	 	     (11) [Reserved].
	 
	 	     (12) All association fees, if any.
	 
	 	     (13) Any other charge or expense of any nature whatsoever which, in
accordance with general industry practice with respect to the operation
of a first class office building, would be construed as an operating
expense.

     D.     “Taxes", which for purposes hereof, shall mean (a) all real estate
taxes and assessments on the Property, the Building or the Premises, and taxes
and assessments levied in substitution or supplementation in whole or in part
of such taxes, (b) all personal property taxes for the Building’s personal
property, including license expenses, (c) all taxes imposed on services of
Landlord’s agents and employees, (d) all sales, use or other tax, excluding
state and/or federal income tax now or hereafter imposed by any governmental
authority upon Rent received by Landlord, (e) all other taxes, fees or
assessments now or hereafter levied by any governmental authority on the
Property, the Building or its contents or on the operation and use thereof
(except as relate to specific tenants), and (f) all costs and fees incurred in
connection with seeking reductions in or refunds in Taxes including, without
limitation, any costs incurred by Landlord to challenge the tax valuation of
the Building or Property, but excluding income taxes. Estimates of real estate
taxes and assessments for any calendar year during the Lease Term shall be
determined based on Landlord’s good faith reasonable estimate of the real
estate taxes and assessments. Taxes and assessments hereunder are those
accrued with respect to such calendar year, as opposed to the real estate taxes
and assessments paid or payable for such calendar year.

C-4

 

     E.     Notwithstanding anything contained in the Lease (including this Exhibit
C) to the contrary, Basic Costs shall not include: (1) Office Specific
Charges, (2) any repairs and general maintenance paid from proceeds of
insurance or by a tenant or other third parties, and alterations attributable
solely to individual tenants of the Property, (3) repairs or other work
occasioned by (a) fire, windstorm, or other casualty of the type which Landlord
has insured (to the extent Landlord has received insurance proceeds and
provided that the amount of any deductible paid by Landlord shall be included
in Basic Costs), or (b) the exercise of the right of eminent domain (to the
extent Landlord has received insurance proceeds or other compensation and
provided that the amount of any deductible paid by Landlord shall be included
in Basic Costs); (4) leasing commissions, brochures, marketing supplies,
attorney’s fees, costs, and disbursements and other expenses occurred in
connection with the negotiation of leases with prospective tenants; (5) rental
concessions granted to specific tenants and expenses incurred in renovating or
otherwise improving or decorating, painting, or redecorating space for specific
tenants in tenant occupied space, other than ordinary repairs and maintenance
supplied to all tenants; (6) Landlord’s costs of electricity and other services
sold or provided to tenants in the Building and for which Landlord is entitled
to be reimbursed by such tenants as a separate additional charge or rental over
and above the rent under the lease with such tenant; (7) all items (including
repairs) and services for which Tenant or other tenants pay directly to third
parties or for which Landlord is reimbursed (other than through Basic Costs);
(8) advertising and promotional expenses; (9) costs incurred in connection with
the sale, financing, refinancing, mortgaging or sale of the Building or
Property, including brokerage commissions, attorneys’ and accountants’ fees,
closing costs, title insurance premiums, transfer taxes and interest charges;
(10) costs incurred by Landlord for trustee’s fees, partnership organizational
expenses and accounting fees to the extent relating to Landlord’s general
corporate overhead and general administrative expenses; (11) attorneys’ fees,
costs and disbursements and other expenses incurred in connection with tenants
or other occupants of the Building or with prospective tenants (other than
attorneys’ fees, costs and disbursements and other expenses incurred by
Landlord in seeking to enforce Building rules and regulations). Further, Basic
Costs shall not include the cost of capital improvements (except as above set
forth), depreciation, interest (except as provided above with respect to the
amortization of capital improvements), lease commissions, and principal
payments on mortgage, ground rental and other non-operating debts of Landlord.
Capital improvements are more specifically defined as:

		
	 	     (1) Costs incurred in connection with the original construction of
the Property or with any major changes to same, including but not limited
to, additions or deletions of corridor extensions, renovations and
improvements of the Common Areas beyond the costs caused by normal wear
and tear, and upgrades or replacement of major Property systems; and
	 
	 	     (2) Costs of correcting defects (including latent defects),
including any allowances for same, in the construction of the Property or
its related facilities; and
	 
	 	     (3) Costs incurred in renovating or otherwise improving, designing,
redesigning, decorating or redecorating space for tenants or other
occupants of the Property or other space leased or held for lease in the
Property.

C-5

 

     F.     If the Building is not at least one hundred percent (100%) occupied, in
the aggregate, during any calendar of the Lease Term or if Landlord is not
supplying services to at least one hundred percent (100%) of the Approximate
Rentable Area of the Building at any time during any calendar year of the Lease
Term, actual Basic Costs for purposes hereof shall, at Landlord’s option, be
determined as if the Building had been one hundred percent (100%) occupied and
Landlord had been supplying services to one hundred percent (100%) of the
Approximate Rentable Area of the Building during such year. Any necessary
extrapolation of Basic Costs that are affected by changes in the occupancy of
the Building (including, at Landlord’s option, Taxes) to the cost that would
have been incurred if the Building had been one hundred percent (100%) occupied
and Landlord had been supplying services to one hundred percent (100%) of the
Approximate Rentable Area of the Building shall be made by Landlord in its
reasonable discretion. In no event shall the provisions of this subsection be
used to enable Landlord to collect from the tenants of the Building, pro-rata,
more than one hundred percent (100%) of increases in Basic Costs and Taxes.

[EXECUTION PAGE FOLLOWS]

C-6

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Exhibit C as of
the day and year first above written.

WITNESS/ATTEST

 

 

 

 

 

By: ________________________

       Name:___________________

       Title:____________________

LANDLORD:

BALLSTON 4501, L.L.C., a Delaware
limited liability company

By:      Transwestern Ballston, L.L.C., 

            its managing member

By:      ASLAN Realty Partners, L.P., its

            Sole member

By:      ASLAN GP, L.L.C., its general

            Partner

     By: ________________________

            Name:___________________

            Title: Managing Director

By:      CG BALLSTON, L.L.C., its member

   By: Connecticut General Life

           Insurance Company, its sole

           member

     By: CIGNA Investments, Inc., a
            Delaware Corporation

     By: ________________________

            Name:___________________

            Title:____________________

[SIGNATURES CONTINUED ON NEXT PAGE]

 

C-7

 

WITNESS/ATTEST

 

By: ________________________

       Name:___________________

       Title:____________________

TENANT:

ALLIANCE BANK CORPORATION, a

Virginia banking corporation

     By: ________________________

            Name:___________________

            Title:____________________

 

C-8

 

EXHIBIT D

WORK LETTER

     This Exhibit is attached to and made a part of the Lease dated ____________,
2003 by and between BALLSTON 4501, L.L.C., a Delaware limited liability company
(“Landlord") and ALLIANCE BANK CORPORATION, a Virginia banking corporation
(“Tenant") for space in the Building located at 4501 North Fairfax Drive,
Arlington, Virginia 22203.

Alterations and Allowance.

     Tenant, following the delivery of the Premises by Landlord and the full
and final execution and delivery of this Lease and all prepaid Rent and
security deposits required hereunder, shall have the right to perform
alterations and improvements in the Premises (the “Initial Alterations").
Notwithstanding the foregoing, Tenant and its contractors shall have the right
to perform Initial Alterations in the Premises as generally shown on the space
plan attached hereto as Schedule D-1 but not until Tenant has complied with all
of the terms and conditions of Article 10.B. of this Lease, including, without
limitation, approval by Landlord of the final plans for the Initial Alterations
and the contractors to be retained by Tenant to perform such Initial
Alterations. Tenant shall be responsible for all elements of the design of
Tenant’s plans (including, without limitation, compliance with law,
functionality of design, the structural integrity of the design, the
configuration of the premises and the placement of Tenant’s furniture,
appliances and equipment), and Landlord’s approval of Tenant’s plans shall in
no event relieve Tenant of the responsibility for such design. Landlord’s
approval of the contractors to perform the Initial Alterations shall not be
unreasonably withheld. The parties agree that Landlord’s approval of the
general contractor to perform the Initial Alterations shall not be considered
to be unreasonably withheld if any such general contractor (i) does not have
trade references reasonably acceptable to Landlord, (ii) does not maintain
insurance as required pursuant to the terms of this Lease, (iii) does not have
the ability to be bonded for the work in an amount of no less than $150,000.00;
(iv) does not provide current financial statements reasonably acceptable to
Landlord, or (v) is not licensed as a contractor in the state/municipality in
which the Premises is located. Tenant acknowledges the foregoing is not
intended to be an exclusive list of the reasons why Landlord may reasonably
withhold its consent to a general contractor. Notwithstanding anything
contained in foregoing provisions to the contrary: (A) Landlord hereby
approves of Interspec Consulting Services to perform architectural and design
services in connection with the Initial Alterations; and (B) Landlord hereby
approves of KBR Construction, Inc., as the general contractor to perform the
Initial Alterations.

     Provided no Event of Default by Tenant exists under this Lease, Landlord
agrees to contribute the sum of Forty Dollars ($40.00) per square of rentable
area in the Premises (the “Allowance") toward the cost of performing the
Initial Alterations in preparation of Tenant’s occupancy of the Premises. The
Allowance may only be used or applied for the cost of preparing design and
construction documents and mechanical and electrical plans for the Initial
Alterations and for hard costs in connection with the Initial Alterations
(which costs may include costs for installing, in accordance with Section 7 of
the Lease, separate meters (or submeters, as

D-1

 

applicable) to measure Tenant’s consumption of utilities in the Premises,
the cost of installing a double glass suite entry door (consistent with other
glass doors currently installed in the main lobby of the Building and subject
to Landlord’s approval) for access to the Premises from the main lobby of the
Building, Landlord approved signage, a security system in the Premises Tenant’s
ATM and the HVAC Unit, the cost of labor and materials in connection with the
construction of the Initial Alterations, as well as permit fees, and general
contractor’s overhead and profit). The Allowance shall be paid to Tenant or,
at Landlord’s option, to the order of the general contractor or architect that
performed the Initial Alterations within thirty (30) days following receipt by
Landlord of (1) receipted bills covering all labor and materials expended and
used in the Initial Alterations; (2) a sworn contractor’s affidavit from the
general contractor and a request to disburse from Tenant containing an approval
by Tenant of the work done; (3) full and final waivers of lien; (4) as-built
plans of the Initial Alterations; and (5) the certification of Tenant and its
architect that the Initial Alterations have been installed in a good and
workmanlike manner in accordance with the approved plans, and in accordance
with applicable laws, codes and ordinances, and (c) a certificate of occupancy
for the Premises. The Allowance shall be disbursed in the amount reflected on
the receipted bills meeting the requirements above. Landlord’s construction
management fee in the amount of two percent (2%) of the total hard cost of the
initial buildout shall be paid out of the Allowance prior to other
disbursements.). Notwithstanding anything herein to the contrary, Landlord
shall not be obligated to disburse any portion of the Allowance during the
continuance of an uncured Event of Default under the Lease, and Landlord’s
obligation to disburse shall only resume when and if such default is cured.

     In no event shall the Allowance be used for the purchase of equipment,
furniture or other items of personal property of Tenant. In the event Tenant
does not use the entire Allowance by December 31, 2003 any unused amount shall
accrue to the sole benefit of Landlord, it being understood that Tenant shall
not be entitled to any credit, abatement or other concession in connection
therewith. Tenant shall be responsible for all applicable state sales or use
taxes, if any, payable in connection with the Initial Alterations and/or
Allowance.

     Tenant agrees to accept the Premises in its “as-is” condition and
configuration, it being agreed that Landlord shall not be required to perform
any work or, except as provided above with respect to the Allowance, incur any
costs in connection with the construction or demolition of any improvements in
the Premises.

     This Exhibit shall not be deemed applicable to any additional space added
to the original Premises at any time or from time to time, whether by any
options under the Lease or otherwise, or to any portion of the original
Premises or any additions to the Premises in the event of a renewal or
extension of the original Lease Term, whether by any options under the Lease or
otherwise, unless expressly so provided in the Lease or any amendment or
supplement to the Lease.

     Notwithstanding anything contained in the Lease to the contrary, the Rent
Commencement Date shall be extended by one (1) day for each day of Landlord
Delay. “Landlord Delay” shall mean Landlord’s failure to approve or otherwise
respond to the submission of the Plans within three (3) Business Days after
written request and submission of

D-2

 

the same to Landlord by Tenant; provided such failure actually causes a
delay. Landlord and Tenant hereby agree to cooperate in good faith to finalize
the Plans.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Exhibit D as of
the day and year first above written.

WITNESS/ATTEST

 

 

 

 

 

By: ________________________

       Name:___________________

       Title:____________________

LANDLORD:

BALLSTON 4501, L.L.C., a Delaware
limited liability company

By:      Transwestern Ballston, L.L.C., 

            its managing member

By:      ASLAN Realty Partners, L.P., its

            Sole member

By:      ASLAN GP, L.L.C., its general

            Partner

     By: ________________________

            Name:___________________

            Title: Managing Director

By:      CG BALLSTON, L.L.C., its member

   By: Connecticut General Life

           Insurance Company, its sole

           member

     By: CIGNA Investments, Inc., a
            Delaware Corporation

     By: ________________________

            Name:___________________

            Title:____________________

[SIGNATURES CONTINUED ON NEXT PAGE]

 

D-3

 

WITNESS/ATTEST

 

By: ________________________

       Name:___________________

       Title:____________________

TENANT:

ALLIANCE BANK CORPORATION, a

Virginia banking corporation

     By: ________________________

            Name:___________________

            Title:____________________

 

D-4

 

SCHEDULE 1 TO EXHIBIT D

TENANT’S SPACE PLAN

D-1-1

 

EXHIBIT E

ADDITIONAL PROVISIONS

     This Exhibit is attached to and made a part of the Lease dated      ,
2003 by and between BALLSTON 4501, L.L.C., a Delaware limited liability company
(“Landlord") and ALLIANCE BANK CORPORATION, a Virginia banking corporation
(“Tenant") for space in the Building located at 4501 North Fairfax Drive,
Arlington, Virginia 22203.

		
	 	I.      Renewal: Landlord hereby grants to Tenant the conditional right,
exercisable at Tenant’s option, to renew the term of this Lease for two
(2) successive terms of five (5) years each (each, a “Renewal Term”). If
exercised, and if the conditions applicable thereto have been satisfied,
the first such Renewal Term (the “First Renewal Term”) shall commence
immediately following the end of the initial Lease Term, and the second
Renewal Term (the “Second Renewal Term”) shall commence immediately
following the end of the First Renewal Term. The rights of renewal
herein granted to Tenant shall be subject to, and shall be exercised in
accordance with, the following terms and conditions:
	 
	 	     (A) Tenant shall exercise its right of renewal with respect to a
Renewal Term by giving Landlord written notice thereof not earlier than
nine (9) months nor later than six (6) months prior to the expiration of
the then-current term of this Lease. The parties shall have thirty (30)
days after Landlord’s receipt of such notice in which to agree on such
annual base rent, escalation factor and additional rent. The parties
shall attempt to agree upon an annual base rent payable during such
Renewal Term which would equal one hundred percent (100%) of the
applicable market rent, in terms of dollars per square foot, taking into
account the Renewal Market Items (as defined below). Among the factors
to be considered by the parties during such negotiations shall be the
general office rental market in the Rosslyn-Ballston-Arlington County,
Virginia submarket, the rental rates then being quoted by Landlord to
comparable tenants for comparable space in the Building, and the rents
being charged similar tenants for similar ground floor/retail space in
multi-tenanted, multi-story, first-class office buildings. The “Renewal
Market Items” shall be, if and to the extent then applicable in renewal
transactions, rental abatements, brokerage commissions and construction
allowances for standard and above-standard construction. If during such
thirty (30) day period the parties agree on such annual base rent,
escalation factor and additional rent payable, then they shall promptly
execute an amendment to this Lease stating the rent so agreed upon. If
during such thirty (30) day period the parties are unable, for any reason
whatsoever, to agree on such annual base rent, escalation factor and
additional rent payable, then within five (5) days thereafter (the
“Revocation Period”) Tenant may, at its election, revoke its election
(the “Revocation Right”) to exercise its right with respect to the
applicable Renewal Term by written notice to Landlord (the “Revocation
Notice”). If Tenant timely exercises its Revocation Right, the Lease
Term shall expire on the expiration of the then existing Lease Term with
Tenant having no further rights to renew or extend the Lease Term
notwithstanding anything contained in this Lease to the contrary. If
Tenant fails to timely exercise its

E-1

 

		
	 	Revocation Right, then within five (5) days after the expiration of
the Revocation Period, the parties shall each appoint a real estate
broker who shall be licensed in the Commonwealth of Virginia and who
specializes in the field of commercial office space leasing in the
Northern Virginia market, has at least ten (10) years of experience and
is recognized within the field as being reputable and ethical. Such two
individuals shall each determine within ten (10) days after their
appointment such annual base rent, escalation factor and additional rent.
If such individuals do not agree on such items, then the two individuals
shall, within five (5) days, render separate written reports of their
determinations and together appoint a third similarly qualified
individual. The third individual shall within ten (10) days after his or
her appointment make a determination of such annual base rent, escalation
factor and additional rent. The annual base rent, escalation factor and
additional rent applicable during such Renewal Term shall equal the
median of the three determinations and shall be final and conclusive.
Landlord and Tenant shall each bear the cost of its broker and shall
share equally the cost of the third broker. Upon determination of the
annual base rent, escalation factor and additional rent payable pursuant
to this Section, the parties shall promptly execute an amendment to this
Lease stating the rent so determined.

		
	 	     (B) If any renewal notice is not given timely, then Tenant’s right
of renewal with respect to the applicable Renewal Term shall lapse and be
of no further force or effect.
	 
	 	     (C) If an Event of Default exists under this Lease on the date
Tenant sends a renewal notice or any time thereafter until a Renewal Term
is to commence, then, at Landlord’s election, such Renewal Term shall not
commence and the term of this Lease shall expire at the expiration of the
then-current term of this Lease.
	 
	 	     (D) If Tenant’s right of renewal with respect to a First Renewal
Term lapses for any reason, then Tenant’s right of renewal with respect
to any subsequent Renewal Term shall similarly lapse and be of no further
force or effect.
	 
	 	     (E) If at any time any portion of the Premises has been subleased or
assigned, or if this Lease has been terminated with respect to any such
portion, then Tenant’s rights pursuant to this Section shall lapse and be
of no further force or effect.
	 
	 	     (F) Tenant’s rights of renewal under this Section may be exercised
only by Tenant and may not be exercised by or for the benefit of any
transferee, sublessee or assignee of Tenant (other than an entity
obtaining the rights and obligations of Tenant pursuant to a Permitted
Transfer).
	 
	 	II.      Exclusive Use: Subject to the last sentence of this Paragraph II,
Landlord shall not lease ground floor retail space in the Building to any
tenant for the primary purpose of operating a branch banking facility
(including a commercial bank, a thrift-savings or credit union) (the
“Exclusive Use”). Landlord shall not be obligated to enforce such
covenant against any third party with whom Landlord does not have a
direct

E-2

 

		
	 	contractual relationship, such as a subtenant or licensee of any tenant
in the Building; provided, however, that Landlord shall use commercially
reasonable efforts to exercise any available contractual rights to
enforce such covenant that Landlord may have under any ground floor
tenant’s lease. Tenant agrees to indemnify, defend, and hold Landlord
harmless from and against any and all claims, actions, suits,
liabilities, damages, costs and expenses arising directly or indirectly
out of Landlord’s compliance with the provisions of this Paragraph II,
including but not limited to any damages for which Landlord may be held
liable on account of antitrust or restraint of trade violations. This
Paragraph II shall become null and void and Tenant shall lose all rights
herein if: (a) the Premises ceases to be used by Tenant for the Exclusive
Use; (b) an Event of Default occurs; (c) Tenant assigns this Lease or
sublets all or any portion of the Premises except in connection with a
Permitted Transfer; or (d) a transfer of corporate shares of Tenant, a
transfer of partnership (or limited liability company) interest of
Tenant, or any other similar change occurs without Landlord’s consent
pursuant to Section 13 (regardless of whether Landlord actually exercises
any available remedies which it may have) except in connection with a
Permitted Transfer.

		
	 	III.      Lease Contingency: Tenant agrees to submit an application for
Banking Approvals (as hereinafter defined) to the Commonwealth of
Virginia State Corporation Commission-Bureau of Financial Institutions
(the “Banking Board”) by no later than five (5) days after execution of
the Lease by Landlord and Tenant and delivery of the same to Tenant, but
in no event later than January 24, 2003. Following submission of such
application, Tenant shall use best efforts to obtain from the Banking
Board any necessary approvals, licenses or consents (hereinafter “Banking
Approvals”) required in order for Tenant to operate its business at the
Premises. In the event Tenant has not received the Banking Approvals on
or before March 3, 2003, either party, at its option, may terminate this
Lease by giving written notice of such election to the other by no later
than March 13, 2003. In such event, this Lease shall thereupon terminate
and be of no further force or effect and the parties shall have no
further rights, obligations or liabilities hereunder.
	 
	 	III.      Satellite Dish.
	 
	 	     (A) Subject to the satisfaction of all applicable provisions of this
Lease and the conditions in this Section, Tenant shall have the license,
at Tenant’s sole risk, cost and expense, to install and maintain in a
designated location on the roof of the Building not to exceed one hundred
(100) square feet in size (the “Satellite Area”) (which location shall be
designated by Landlord) one (1) satellite dish antenna, together with the
cables extending from such antenna to the Premises through plenums,
risers, electrical closets, ducts or pipes on or serving the floors on
which the Premises are located (other than those installed for another
tenant’s exclusive use and provided Tenant shall have utilization of each
such facility or area in no greater proportion than the ratio by which
the square feet of rentable area in the Premises compares to the square
feet of rentable area in the Building), all in accordance with the plans
and specifications to be approved by Landlord in its reasonable
discretion. The location, size, weight, height and all other features
and

E-3

 

		
	 	specifications of the antenna and the manner of the initial
installation of the same shall be subject to Landlord’s prior written
approval, which approval shall not be unreasonably withheld. The
installation of such antenna and all related wiring and equipment shall
be performed during Normal Business Hours and under the supervision of
Landlord’s designated representative at Tenant’s cost. Notwithstanding
the foregoing, Tenant shall not be entitled to install such an antenna
(i) which is greater than three (3) meters (or equivalent pounds) in
diameter (or weight), (ii) which is more than ten (10) feet in height,
(iii) if such installation would adversely affect (or in a manner that
would adversely affect) any warranty with respect to the roof or
structure of the Building, (iv) if such installation would adversely
affect (or in a manner that would adversely affect) the structure or any
of the building systems of the Building, or if such installation would
require (or in a manner that would require) any structural alteration to
the Building, or if such installation would disturb the roof membrane or
make any other penetration on the roof or the exterior facade of the
Building, unless Landlord in its sole and absolute discretion approves in
writing such structural alteration, (v) if such installation would
violate (or in a manner that would violate) any covenant, condition, or
restriction of record affecting the Building or any applicable federal,
state or local law, rule or regulation, (vi) unless all required
approvals and consents of all holders of Mortgages encumbering the
Building are obtained, (vii) unless Tenant has obtained and maintains at
Tenant’s expense, and has submitted to Landlord copies of, all permits,
licenses, special zoning variances, authorizations and approvals relating
to such antenna and such installation and maintenance (including, without
limitation, any permit required if a crane is necessary to place such
antenna on the roof) and pays all taxes and fees related thereto, (viii)
unless such antenna is white or of a beige or lighter color (or otherwise
appropriately screened), (ix) unless such antenna is installed, at
Tenant’s sole cost and expense, by a qualified contractor chosen by
Tenant and approved in advance by Landlord, which approval shall not be
unreasonably withheld, (x) if the installation or operation would
interfere with or disrupt the use or operation of any other equipment
(including antennae) on the roof of the Building, (xi) unless Tenant
obtains Landlord’s prior consent to the manner and time in which such
installation work is to be done; (xii) unless sufficient room therefor
then exists on the roof, as reasonably determined by Landlord, at the
time of the proposed installation; and (x) unless screened from view from
the grounds adjacent to the Building in a manner and with materials
acceptable to Landlord in its sole discretion. All plans and
specifications concerning such installation shall be subject to
Landlord’s prior written approval, which approval shall not be
unreasonably withheld, and Tenant shall reimburse Landlord’s expenses
incurred in such review. All maintenance, repairs and installations
required after the initial installation of the antenna also shall be
subject to Landlord’s prior written approval (to be granted or withheld
in Landlord’s sole and absolute discretion) which approval shall be at
Tenant’s sole cost and expense. Any failure to complete the installation
of the antenna and related equipment shall not delay the Commencement
Date or Rent Commencement Date. Tenant shall have no right to any
abatement or reduction in the Base Rent, addi
tional rent or any other
sums due or payable under this Lease if for any reason Tenant is unable
to obtain any required approval for installation of an antenna, or is
thereafter unable to use the antenna for any reason.

E-4

 

		
	 	     (B) Tenant shall not have access to any such antenna without
Landlord’s prior written consent, which consent shall be granted to the
extent necessary for Tenant to perform its maintenance obligations
hereunder only and only if Tenant is accompanied by Landlord’s
representative (if Landlord so requests). Any such access by Tenant
shall be subject to reasonable rules and regulations relating thereto
established from time to time by Landlord, including without limitation
rules and regulations prohibiting such access unless Tenant is
accompanied by Landlord’s representative. Landlord shall have the right
to access the Satellite Area at all times.

		
	 	     (C) At all times during the Lease Term, Tenant shall (i) maintain
all said equipment in clean, good and safe condition and in a manner that
avoids interference with or disruption to Landlord and other tenants of
the Building, (ii) comply with all requirements of laws, ordinances,
rules and regulations of all public authorities and insurance companies
which shall impose any order or duty upon Landlord with respect to or
affecting the antenna or wiring out of Tenant’s use or manner of use
thereof, and (iii) register the equipment, if required, with appropriate
governmental authorities and keep same current. All repairs and
maintenance shall be performed by a qualified contractor approved by
Landlord. Tenant shall pay and discharge all costs and expenses incurred
by Landlord in connection with the furnishing, installation, maintenance,
operation and removal of the antenna within ten (10) days after written
demand. All repairs and maintenance to the Building made necessary by
reason of the furnishing, installation, maintenance, operation or removal
of the antenna or any replacements thereof (including, without
limitation, any invalidation of the roof warranty due to the antenna or
Tenant’s actions) shall be at Tenant’s sole cost. If the operation of
the antenna shall require electrical power, Landlord may, at its sole
option, install a separate meter, at Tenant’s sole expense, to measure
such electrical consumption and Tenant shall pay for such consumption at
the then-current price per kilowatt hour charged Landlord by the utility.
At the expiration or earlier termination of the Lease Term, or upon
termination of the operation of the antenna and related equipment as
provided in subsection (f) below, Tenant shall remove such antenna and
related equipment from the Building and surrender the Satellite Area in
good condition, ordinary wear and tear and unavoidable damage by the
elements excepted. If Tenant fails to so remove the antenna and
equipment in accordance with the foregoing, Landlord shall have the right
to remove and dispose of such antenna and equipment, at Tenant’s sole
cost and expense, and Landlord shall have no liability therefor.

		
	 	     (D) Upon at least ten (10) days’ prior written notice to Tenant,
Landlord shall have the right to require Tenant to relocate the antenna,
if in Landlord’s opinion such relocation is necessary or desirable. Any
such relocation shall be performed by Tenant at Landlord’s expense, and
in accordance with all of the requirements of this Section. Nothing in
this Section shall be construed as granting Tenant any line of sight
easement with respect to such satellite dish antenna; provided, however,
that if Landlord requires that such antenna be relocated in accordance
with the preceding two (2) sentences, then Landlord shall use reasonable
efforts to provide either (i) the same line of sight for such antenna as
was available prior to such relocation, or (ii) a line of sight for such
antenna which is functionally equivalent to that available prior to such
relocation.

E-5

 

		
	 	     (E) It is expressly understood that by granting Tenant the license
hereunder, Landlord makes no representation as to the legality of such
antenna or its installation. In the event that any federal, state,
county, regulatory or other authority requires the removal or relocation
of such antenna, Tenant shall remove or relocate such antenna at Tenant’s
sole cost and expense, and Landlord shall under no circumstances be
liable to Tenant therefor. In addition, at Landlord’s sole option and
discretion, Landlord may require Tenant, at any time prior to the
expiration or earlier termination of this Lease, to terminate the
operation of the antenna and related equipment if it is causing physical
damage to the structural integrity of the Building, interfering with any
other service provided to the Building, interfering with any other
tenant’s business or causing the violation of any condition or provision
of this Lease. Landlord may require Tenant to take any of the foregoing
actions even if any or all other tenants in the Building are permitted to
continue any similar use or operation. The right granted to Tenant under
this Section is a non-exclusive, non-transferable, revocable license to
use the Satellite Area solely in accordance with terms and conditions of
this Section.

		
	 	     (F) Tenant shall indemnify and hold Landlord harmless from and
against all costs, damages, claims, liabilities and expenses (including
attorneys’ fees) suffered by or claimed against Landlord, directly or
indirectly, based on, arising out of or resulting from any act or
omission by Tenant or Tenant’s employees, agents, assignees, subtenants,
contractors, clients, guests, licensees, customers or invitees with
respect to the installation, use, operation, maintenance, repair, removal
or disassembly of such antenna and related equipment (including, without
limitation, any damage to other wires or equipment of the Building or
other tenants/occupants of the Building).
	 
	 	     (G) The antenna may be used by Tenant only in the conduct of
Tenant’s customary business. No assignee or subtenant (other than an
assignee or sublessee in connection with a Permitted Transfer) shall have
any rights pursuant to this Paragraph IV.
	 
	 	     (H) Tenant shall maintain such insurance (in addition to that
required by Section 15 of this Lease) as is appropriate with respect to
the installation, operation and maintenance of the antenna. Landlord
shall have no liability on account of any damage to or interference with
the operation of the antenna, except for physical damage caused by
Landlord’s gross negligence or willful misconduct not covered by Tenant’s
insurance carried or required to be carried by said Section 15, and
Landlord expressly makes no representations or warranties with respect to
the capacity for an antenna placed on the roof of the Building to receive
or transmit signals. The operation of the antenna shall be at Tenant’s
sole and absolute risk. Tenant shall in no event interfere with the use
of any other communications equipment located on the roof of or anywhere
else in the Building.

[EXECUTION PAGE FOLLOWS]

E-6

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Exhibit E as of
the day and year first above written.

WITNESS/ATTEST

 

 

 

 

 

By: ________________________

       Name:___________________

       Title:____________________

 

 

 

 

 

 

WITNESS/ATTEST

 

By: ________________________

       Name:___________________

       Title:____________________

LANDLORD:

BALLSTON 4501, L.L.C., a Delaware
limited liability company

By:      Transwestern Ballston, L.L.C., 

            its managing member

By:      ASLAN Realty Partners, L.P., its

            Sole member

By:      ASLAN GP, L.L.C., its general

            Partner

     By: ________________________

            Name:___________________

            Title: Managing Director

By:      CG BALLSTON, L.L.C., its member

   By: Connecticut General Life

           Insurance Company, its sole

           member

     By: CIGNA Investments, Inc., a
            Delaware Corporation

     By: ________________________

            Name:___________________

            Title:____________________

TENANT:

ALLIANCE BANK CORPORATION, a

Virginia banking corporation

     By: ________________________

            Name:___________________

            Title:____________________

 

E-7

 

EXHIBIT F

COMMENCEMENT LETTER

Date______________

Tenant____________

Address___________

__________________

	Re: 	 	Commencement Letter with respect to that certain Lease dated ___________ by
and between BALLSTON 4501, L.L.C., a Delaware limited liability company,
as Landlord ALLIANCE BANK CORPORATION, a Virginia banking corporation, as
Tenant for an Approximate Rentable Area in the Premises of ___________ square feet on the ___________ floor of the Building located at 4501 North
Fairfax Drive, Arlington, Virginia 22203.

Dear ___________:

     In accordance with the terms and conditions of the above referenced Lease,
Tenant hereby accepts possession of the premises and agrees as follows:

     The Commencement Date of the Lease is ______________________;

     The Termination Date of the Lease is _________________________.

     Landlord agrees to complete the work in the Premises identified in the
punchlist jointly prepared by Landlord and Tenant dated ___________.

     Please acknowledge your acceptance of possession and agreement to the
terms set forth above by signing all three (3) copies of this Commencement
Letter in the space provided and returning two (2) fully executed copies of the
same to my attention.

Sincerely,

XXXXXXXXX

Property Manager

Agreed and Accepted:

TENANT:

By:
_______________________

Name:_____________________

Title:______________________

F-1

 

EXHIBIT G

PARKING

     This Exhibit is attached to and made a part of the Lease dated ___________,
2003 by and between BALLSTON 4501, L.L.C., a Delaware limited liability company
(“Landlord") and ALLIANCE BANK CORPORATION, a Virginia banking corporation
(“Tenant") for space in the Building located at 4501 North Fairfax Drive,
Arlington, Virginia 22203.

     1.     Landlord shall cause the Building parking manager to make available to
Tenant at the commencement of the term of this Lease six (6) parking permits
authorizing the use of a total of six (6) of the Building’s parking spaces (the
“Spaces") in the Building parking facility or parking lot (the “Parking
Facility") on an unreserved basis; provided, however, Tenant must notify
Landlord in writing within five (5) days of the execution hereof of the number
of the Spaces which Tenant elects to use. Landlord shall have no obligation to
make any parking spaces available to Tenant other than the number of the Spaces
which Tenant has so elected to use. With respect to the Spaces which Tenant
elects to use, Tenant shall be obligated to pay the rental fee which is from
time-to-time charged for such unreserved Spaces (currently $85.00 per permit
per month) together with all applicable taxes charged by any governmental
authority in connection with the rental of such unreserved Spaces. Tenant
shall be obligated to contract directly with the manager of the Building
parking manager for the use of the Spaces. Notwithstanding anything contained
herein to the contrary, with respect to those Spaces Tenant elects to use in
accordance with the foregoing, Tenant may elect to reserve the use of three (3)
of such Spaces (the “Reserved Spaces”) and, in the event Tenant so elects,
Tenant shall be obligated to pay the rental fee which is from time-to-time
charged for such Reserved Spaces (currently $120.00 per permit per month)
together with all applicable taxes charged by any governmental authority in
connection with the rental of such Reserved Spaces. If so elected, the
Reserved Spaces, plus one (1) additional parking space in the Parking Facility
provided without charge to Tenant, shall be located on the first (1st) level of
the Parking Facility and shall be designated for use by Tenant’s customers and
invitees. In addition, Landlord acknowledges that Tenant may work with the
Building parking manager in order to institute a parking validation program for
Tenant’s customers at the Premises. Any such program shall be permitted only
if and to the extent such program is reasonable and approved in advance by
Landlord.

     2.     It is hereby agreed and understood that Landlord’s sole obligation
hereunder is to make the Spaces available to Tenant, subject to the terms
hereof. Tenant’s right to the use of such Spaces shall be subject to
compliance with the rules and regulations for the Parking Facility promulgated
from time-to-time, and shall be subject to termination for violation of any
such rules or regulations upon notice from Landlord or the Building parking
manager, and that hours are subject to change from time to time. Landlord
shall have no liability whatsoever for any property damage, loss or theft
and/or personal injury which might occur as a result of or in connection with
the use of the Spaces by Tenant, its employees, agents, servants, customers,
invitees and licensees, and Tenant hereby agrees to indemnify and hold Landlord
harmless from and against any and all costs, claims, expenses, and/or causes of
action which Landlord may incur in connection with or arising out of Tenant’s
use of the Spaces.

G-1

 

EXHIBIT H

FORM OF NON-DISTURBANCE AGREEMENT

     This Subordination, Non-Disturbance and Attornment Agreement (this
“Agreement”) is dated as of this ___________, 2003, by and among Bank of
America, National Association, a national banking association with its
principal place of business at 231 South LaSalle Street, Chicago, Illinois
60697 (the “Lender”), ALLIANCE BANK CORPORATION, a Virginia banking corporation
(the “Tenant”), and Ballston 4501, LLC, a Delaware limited liability company
(“Landlord” and “Borrower”).

RECITALS

     A.     Tenant is the tenant and Landlord is the landlord under a certain lease
(the “Lease”) dated ___________, a memorandum of which was recorded on
___________ in the Office of ___________ County ___________ as
Document No. ___________, covering premises (the “Demised Premises”) located in a
certain development commonly known as ______________________.

     G.     Lender has made a loan (the “Loan”) to Borrower, evidenced by a
Promissory Note (“Note”) dated March 31, 2000 in the stated principal amount of
$24,991,411 from Borrower to Lender which Loan is secured, among other things,
by a certain Deed of Trust, Assignment of Rents, Security Agreement and
Fixture Filing (as the same may be amended, “Mortgage”) dated as of March 31,
2000 made by Landlord, encumbering the property legally described on Exhibit A
attached hereto and made a part hereof (“Property”) that includes the Demised
Premises.

     H.     Tenant desires that Lender enter into certain agreements with Tenant
and Lender desires that Tenant enter into certain agreements with Lender, all
on the terms and conditions as more particularly set forth herein.

AGREEMENTS

     For mutual consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1.     Subordination. Tenant agrees that, subject to Section 48 hereof, the
Lease is and shall be subject and subordinate to the Mortgage and to all
renewals, amendments, modifications, consolidations, replacements and
extensions thereof, to the full extent of all amounts from time to time secured
thereby, said subordination to have the same force and effect as if the
Mortgage, the Assignment, and such renewals, modifications, consolidations,
replacements and extensions thereof had been executed, acknowledged, delivered
and recorded prior to the Lease, any amendments or modifications thereof and
any notice thereof.

     2.     Nondisturbance. Lender agrees that, in the event of an entry by Lender
pursuant to the Mortgage, a foreclosure of the Mortgage, the acceptance of a
deed in lieu of foreclosure by Lender, or the exercise by Lender of any of its
rights under the Mortgage or Assignment, Lender

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shall not disturb Tenant’s right of possession of the Demised Premises
under the terms of the Lease so long as Tenant is not in default in payment of
rent or in performance of any of the terms, covenants or conditions of the
Lease on Tenant’s part to be performed beyond any applicable grace period.

     3.     Attornment. Tenant agrees that, in the event of an entry by Lender
pursuant to the Mortgage, a foreclosure of the Mortgage by Lender, the
acceptance of a deed in lieu of foreclosure by Lender, or Lender’s exercise of
any of its rights under the Mortgage, Tenant will attorn to and recognize
Lender as its landlord under the Lease for the remainder of the term of the
Lease (including all extension periods which have been or are hereafter
exercised) upon the same terms and conditions as are set forth in the Lease,
and Tenant hereby agrees to pay and perform all of the obligations of Tenant
pursuant to the Lease.

     4.     Limitations on Mortgagor Liability. Tenant agrees that, in the event
Lender succeeds to the interest of Landlord under the Lease:

	 	(a)	 	Lender shall not be liable for any act or
omission of any prior landlord (including Landlord);
	 
	 	(b)	 	Lender shall not be liable for the return of any
security deposits, except for deposits actually received by
Lender as security for the performance of Tenant’s obligations
under the Lease;
	 
	 	(c)	 	Lender shall not be bound by any prepayment of
rent, additional rent or any other sums to be paid to, or
deposited with, any prior landlord (including Landlord) in
excess of said sums due and payable in the then current month;
	 
	 	(d)	 	Lender shall not be bound by any amendments,
modifications or termination of the Lease made after the date
hereof without the written consent of Lender;
	 
	 	(e)	 	Lender shall not be subject to any credits,
offsets, deductions or defenses which Tenant might have
against any prior landlord (including Landlord);
	 
	 	(f)	 	Lender shall not be liable to the Tenant for the
commencement or completion of any construction or
installation, or any contribution toward construction or
installation, of any improvements upon the Demised Premises;
and
	 
	 	(g)	 	Lender shall not be bound by any provision of the
Lease which permits the Tenant to cure any failure of the
landlord to perform or observe any covenant or condition to be
performed or observed by the landlord, and to charge the
landlord for, or deduct from or offset against rent,
additional rent or any other sums due the landlord, the costs
and expenses incurred by the Tenant in connection therewith.

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     5.     Insurance and Condemnation. Tenant agrees that, notwithstanding any
provision of the Lease to the contrary, the terms of the Mortgage shall govern
with respect to the disposition of any insurance proceeds or eminent domain
awards, and any obligations of Landlord to restore the Property shall, insofar
as they apply to Lender, be limited to insurance proceeds or eminent domain
awards received by Lender after the deduction of all reasonable costs and
expenses incurred in obtaining such proceeds or awards.

     6.     Notices to Landlord. Tenant agrees to give to Lender a copy of any
notice of default under the Lease served by Tenant upon Landlord. Tenant
further agrees that, if the Landlord shall have failed to cure such default
within the time provided in the Lease, then Lender shall have an additional 60
days after the expiration of Landlord’s cure period (but in no event less than
60 days after notice of Landlord’s default to Lender) within which to cure such
default or, if such default cannot be cured within that time, then such
additional time as may be reasonably necessary if, within Lender’s initial
60-day cure period, Lender shall have commenced and shall be diligently
pursuing the remedies necessary to cure such default (including, but not
limited to, commencement of foreclosure proceedings if necessary to effect such
cure). Such period of time shall be extended by any period within which Lender
is prevented from commencing or pursuing such foreclosure proceedings by reason
of the bankruptcy of the Landlord. Until the time allowed as aforesaid for
Lender to cure such default has expired without cure, Tenant shall have no
right to and shall not, on account of such default, terminate the Lease, reduce
rent, or offset or credit any amounts against the rent.

     7.     Amendment of Lease. Tenant agrees that it shall not alter, amend or
modify the terms of the Lease without the consent of Lender, and any such
alteration, amendment or modification made without Lender’s consent shall be
void and of no force and effect ab initio at Lender’s sole election.

     8.     Tenant Rights in Foreclosure. Tenant hereby waives, to the extent
permitted by law, the provisions of any statute or rule of law now or hereafter
in effect which may give or purport to give Tenant any right or election to
terminate or otherwise adversely affect its Lease or the obligations of Tenant
under this Agreement by reason of any foreclosure proceeding.

     9.     Providing Information to Mortgagor. So long as the Mortgage remains in
force and effect and has not been expressly released, Tenant will provide
Lender, upon specific and reasonable request of Lender, with all information,
including, but not limited to, evidence of payment of taxes and insurance (if
Tenant is obligated for such payments under the Lease), to which Landlord may
be entitled under the Lease.

     10.     Inspection by Mortgagor. So long as the Mortgage remains in force and
effect and has not been expressly released, Lender or its designee may enter
upon the Demised Premises at all reasonable times and upon reasonable advance
notice to visit or inspect the Property.

     11.     Estoppel. Tenant agrees from time to time, upon request by Lender, to
provide Lender with an estoppel certificate certifying that, except as
described therein, there are no defaults, claims, offsets or events or
circumstances which, with the passage of time or giving of notice, or both,
could become a default or a basis for a claim or offset against Landlord under
the

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lease, and certifying such other matters concerning the Lease, the parties
thereto and the Demised Premises as Lender may reasonably request.

     12.     Nonrecourse. Tenant agrees that, notwithstanding anything to the
contrary contained herein or in the Lease, (a) Lender shall have no liability
to Tenant whatsoever prior to succeeding to the rights of Landlord under the
Lease, and (b) in the event Lender shall succeed to the rights of Landlord
under the Lease, Tenant shall look solely to Lender’s interest in the Property
in the enforcement of any claims against Lender. Neither Lender nor any
director, officer, employee or agent of Lender shall, under any circumstances,
assume or have any personal liability under the Lease and Tenant shall have no
rights whatsoever in or against any other assets or properties of Lender, or
any director, officer, employee or agent of Lender except as expressly set
forth in clause (b) above.

     13.     Option to Subordinate Mortgage. Lender may, at its option and without
further notice to, or action by, the parties hereto, subordinate the lien of
the Mortgage to the Lease and Landlord and Tenant hereby agree to execute any
and all such documents and instruments and take such other actions as Lender
may reasonably require to evidence such subordination. Upon any such
subordination, the terms and provisions of this Agreement shall remain in full
force and effect except to the extent that Section 36 hereof is expressly
superseded by Lender’s action pursuant to this Section 48.

     14.     Miscellaneous.

     A.     Notices. Any notice required or permitted to be given hereunder shall
be in writing, and shall be (i) personally delivered to the party to whom it is
to be sent, (ii) sent by U.S. certified or registered mail, return receipt
requested, postage prepaid, (iii) sent by next business day courier (such as
Federal Express or the like), or (iv) sent by telecopy, provided that the party
giving such telecopied notice also sends written notice by next business day
courier (such as Federal Express or the like), to the respective addresses and
telecopy number (as applicable) set forth below, or to such other place and
telecopy number as any party hereto may by notice given as provided herein
designate for receipt of notices hereunder. Any such notice shall be deemed
given and effective upon receipt or refusal of receipt thereof by the primary
party to whom it is to be sent and, in the case of telecopied notice, upon
receipt of the telecopy.

If to Landlord:_____________________

                         _____________________

                         _____________________

                         Attn:_________________

                         Telecopy No.___________

with a copy to:

                         _____________________
                         _____________________

                         _____________________

                         Attn:_________________

                         Telecopy No.___________

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If to Tenant:   _____________________

                         _____________________

                         _____________________

                         Attn:_________________

                         Telecopy No.___________

With a copy to:

                         _____________________
                         _____________________

                         _____________________

                         Attn:_________________

                         Telecopy No.___________

If to Lender:   Bank of America, National Association

                         IL1-231-12-18

                         231 South LaSalle Street

                         Chicago, Illinois 60697

                         Attn: Richard Baer

                         Telecopy No. (312) 974-4970

With a copy to:

                         Barack Ferrazzano Kirschbaum Perlman & Nagelberg

                         333 West Wacker Drive, Suite 2700

                         Chicago, Illinois 60606

                         Attn: Douglas W. Anderson, Esq.

                         Telecopy No. (312) 984-3150

     B.     Notice Under Lease. To the extent that the Lease shall entitle the
Tenant to notice of any mortgage, or of the assignment of the Lease or the
rents payable thereunder, this Agreement shall constitute such notice to the
Tenant.

     C.     Notice from Lender. Landlord hereby authorizes Tenant to rely on any
written notice or demand from the Lender to make rent and other payments to
which Landlord may be entitled to Lender instead of Landlord, whenever such
notice or demand is made by Lender under the Assignment and Tenant shall have
no liability to Landlord for making such payments to Lender and the amount of
all such payments shall be credited against amounts due from Tenant under the
Lease. Lender agrees with Landlord not to deliver any such notice except in
accordance with the terms of the Assignment.

     D.     Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the parties hereto, and their respective successors and
assigns. The Term “Lender” as used herein includes any successor or assign of
the named Lender herein, including, without limitation, any purchaser at a
foreclosure sale, and any successor or assign thereof, and any term “Tenant” as
used herein includes any successor and assign of the named Tenant herein.

H-5

 

     E.     Modification and Assignment. This Agreement may not be modified orally
or in any manner other than by an agreement in writing signed by the parties
hereto or their respective successors in interest.

     F.     Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original and any of which may contain the signatures
of less than all of the parties hereto, but all of which together shall
constitute one and the same instrument.

     Witness the execution hereof under seal as of ______________, 200_.

	 
	LENDER:

	BANK OF AMERICA, NATIONAL
ASSOCIATION, a national banking association

	By:________________________

Its:_______________________

	LANDLORD:

	BALLSTON 4501, LLC, a Delaware limited

liability company

	By:________________________

Its:_______________________

	TENANT:

	ALLIANCE BANK CORPORATION, a Virginia

banking corporation

	By:________________________

Its:_______________________

H-6

 

	 	 	 
	STATE OF ____________	 	)
	 	 	
)SS.
	COUNTY OF _________	 	)

     I, the undersigned, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that _______________, the
______________________ of Bank of America, National Association, a
national banking association, personally known to me to be the same person
whose name is subscribed to the foregoing instrument, appeared before me this
day in person, and acknowledged that she signed, sealed and delivered the said
instrument as her own free and voluntary act, and as the free and voluntary act
of said corporation, for the uses and purposes therein set forth.

     Given under my hand and official seal, this  ___ day of ____________,
20__.

	 
	____________________________________

Notary Public, State of ___________

	____________________________________

(Printed Name)

My Commission expires:_____________

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	STATE OF ____________	 	)
	 	 	
)SS.
	COUNTY OF _________	 	)

     I, the undersigned, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that _____________, the ___________________________ of __________________, a ________________,
personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person, and acknowledged
that she signed, sealed and delivered the said instrument as her own free and
voluntary act, and as the free and voluntary act of said corporation, for the
uses and purposes therein set forth.

     Given under my hand and official seal, this  ___ day of ____________,
20__.

	 
	____________________________________

Notary Public, State of ___________

	____________________________________

(Printed Name)

My Commission expires:_____________

H-8

 

	 	 	 
	STATE OF ____________	 	)
	 	 	
)SS.
	COUNTY OF _________	 	)

     I, the undersigned, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that _____________, the ___________________________ of __________________, a ________________,
personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person, and acknowledged
that she signed, sealed and delivered the said instrument as her own free and
voluntary act, and as the free and voluntary act of said corporation, for the
uses and purposes therein set forth.

     Given under my hand and official seal, this  ___ day of ____________,
20__.

	 
	____________________________________

Notary Public, State of ___________

	____________________________________

(Printed Name)

My Commission expires:_____________

After recording, this document

should be returned to:

Douglas W. Anderson, Esq.

Barack Ferrazzano Kirschbaum

   Perlman & Nagelberg

333 West Wacker Drive, Suite 2700

Chicago, Illinois 60606

H-9

 

EXHIBIT A

Legal Description

 

 

 

 

H-10

 

EXHIBIT I

TENANT’S SIGN PLANS

[Attached]

 

 

 

 

I-1

 

I-2

 

I-3exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is effective the 8th day of January, 2003 by and between
BioReliance Corporation, a Delaware corporation with principal offices located
at 14920 Broschart Road, Rockville, Maryland 20850, and all of its subsidiary
companies and its successors or assigns (the “Corporation”) and David E.
Jackson (the “Executive”).

	A.	 	POSITION AND EMPLOYMENT RELATIONSHIP:

	 	1.	 	The Executive is employed as the Vice President,
Manufacturing (“Vice President”) of the Corporation. Commencing on
the effective date of this Agreement for a term of twelve (12)
months (hereinafter referred to as “Term”), the Corporation hereby
agrees to continue to employ the Executive in his current position
or a comparable position consistent with his qualifications and
experience, and the business needs of the Corporation. At the end
of this twelve (12) month Term, this Agreement and all its
provisions will renew once for another Term of twelve (12) months,
unless ninety (90) days prior to the end of the original Term, the
Executive or the President and Chief Executive Officer of the
Corporation provides written notice to the other of an intent not to
renew the Agreement.
	 
	 	2.	 	Such employment relationship is not at-will and is instead
governed by the terms and conditions set forth in this Agreement.
The Employment relationship, however, may be terminated by the
Corporation or the Executive prior to the expiration of this twelve
(12) month Term pursuant to sections E, F, I, and J respectively of
this Agreement.
	 
	 	3.	 	As Vice President, the Executive shall perform such duties as
may be assigned to the Executive from time to time by the
Corporation’s President and Chief Executive Officer (“CEO”) or the
Corporation’s Board of Directors (“Board”), including, but not
limited to the following: developing and executing plans toward
attainment of current and long-range objectives, including achieving
revenue, revenue growth and income objectives, maximum return on
invested capital, and quality, client satisfaction and employee
development goals; developing financial plans and budgets;
overseeing all reporting functions; coordinating activities with
other vice presidents and supporting departmental directors; supporting
Corporate activities including market analyses, strategic planning, R&D
planning and project selection, engagement and assessments of potential
partners, and the like; supporting the evaluation and analysis of
acquisition opportunities, if any, as may be identified from time to time
by the President and CEO; developing and documenting novel or typical

1 of  9

 

	 	 	 	manufacturing programs, procedures, methodologies and the like; meeting
with clients, understanding their product and production methods, and
developing timely and cost-effective strategies acceptable to them and to various
national regulatory authorities; designing major projects and, as
appropriate, writing major project plans; closing key proposals; directing
complex technical activities, in particular projects of significant scale
and scope; solving challenging technical, regulatory and service problems;
building client relationships; and anticipating follow-on client engagements.

	B.	 	LIMITATION ON OUTSIDE ACTIVITIES: The Executive shall
devote his full employment energies, interest, abilities and time to the
performance of the obligations hereunder and shall not, without written
consent of the Corporation, through its President and CEO, render to
others any service of any kind for compensation, and in addition, shall
not engage in any activity which conflicts or interferes with the
performance of the Executive’s duties hereunder.
	 
	C.	 	COMPENSATION: For all services rendered by Executive
pursuant to this Agreement, Corporation will pay to Executive, and the
Executive will accept as full compensation hereunder, the following:

	 	1.	 	Base Salary: The Executive’s annual base salary (“salary”)
during calendar year 2002, as determined by the Compensation
Committee of the Board, shall be two hundred and twenty thousand
dollars ($220,000). The salary will be subject to all appropriate
federal, state and local withholding requirements and will be
payable in equal bi-weekly installments. The Executive’s salary
during a subsequent calendar year during the Term of this Agreement
will be determined by the Compensation Committee of the Board based
upon the recommendation of the President and CEO, but in no event
shall the Executive’s salary be less than the salary he received
during the prior calendar year.
	 
	 	2.	 	Performance Bonus: If the Executive remains in the employ of
the Corporation through December 31 of each year during the Term of
this Agreement, the Executive shall be eligible for a performance
bonus (“bonus”) based on individual and corporate performance
factors relating to mutually acceptable objectives. Executive’s
bonus will be subject to all appropriate federal, state and local
withholding requirements. The exact amount of the bonus will be at
the discretion of the Compensation Committee of the Board. Unless
otherwise specified in this Agreement, the Corporation will be
obligated to pay the Executive the bonus as long as the Executive
(a) does not resign from the Corporation before December 31 of each
year, or (b) is not terminated for Cause (as hereinafter defined),
or (c) does not fail to meet his individual performance

2 of  9

 

	 	 	 	objectives. This bonus may also be paid out on a quarterly basis at the
discretion of the Compensation Committee of the Board.
	 
	 	3.	 	Stock Options: As an inducement to remain in the employ of
the Corporation and as an incentive to build the Corporation’s
value, the Corporation may grant to the Executive additional stock
options. The number of option shares to be granted and their timing
and other terms will be determined by the Compensation Committee of
the Board and governed by the Corporation’s 1997 Incentive Plan (as
adopted May 28, 1997 and amended and restated September 24, 1997,
May 21, 1998, May 13, 1999, and April 24, 2002) [hereinafter
referred to as “1997 Incentive Plan"], which is attached hereto as
Exhibit 1.

	D.	 	BENEFITS AND PERQUISITES:

	 	1.	 	Medical and Other Insurance Coverage: The Corporation shall
provide such medical and other insurance coverage to the Executive
to the extent and on the terms that such benefits are made available
to other similarly situated employees. This provision does not
alter the Corporation’s right to modify or eliminate any employee
benefit plan from time to time and does not guarantee the
continuation of any kind or level of benefit or perquisite.
	 
	 	2.	 	Paid Personal Leave: The Executive shall receive vacation,
sick and personal holiday leave pursuant to the Corporation’s Paid
Personal Leave Policy (“PPL”) under the schedule for an Executive of
the Company, which is attached hereto as Exhibit 2 and incorporated
herein by reference.
	 
	 	3.	 	Other Perquisites and Benefits: The Corporation will provide
the Executive with appropriate office space, as it deems necessary,
and will provide telephone, computer, email and internet access as
required to perform the Executive’s duties during the term of his
employment.

	E.	 	COMPENSATION UPON CHANGE IN CONTROL:
Notwithstanding any other provision in this Agreement, if there is a
“change in control” of the Corporation (as hereinafter defined) during the
Term of this Agreement, and within twelve (12) months thereafter, either
(1) the Executive is terminated Without Cause (as hereinafter defined in
section F) or (2) the Executive’s responsibilities are significantly
reduced and, as a result, the Executive terminates his employment pursuant
to section J, the Executive shall be entitled to the compensation and
benefits set forth below.

	 	1.	 	Base Compensation: The Corporation shall pay the Executive
sixteen (16) months of his then current base salary. This
compensation will be paid in two parts, as follows: (a) an initial
lump-sum payment of eight (8) months of base salary will be paid
within ten (10) working days of termination of employment

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	 	 	 	and (b) beginning six (6) months after termination of employment, equal
monthly payments for eight (8) months thereafter. This second
payment in section (b) will be correspondingly reduced by any base
compensation payments the Executive receives through new employment.
The Executive is obligated to inform the Corporation, its successors
and assigns, in writing within ten (10) calendar days of his
acceptance of such new employment and include in this notice what
his base compensation and expected start date are. However, if the
Executive’s base compensation at such new employment is equal to or
exceeds his prior base salary at the Corporation, the Executive may
simply confirm this fact in the notice in lieu of disclosing the
actual new base compensation figure.
	 
	 	2.	 	Stock Options: The disposition of any and all stock options
granted by the Corporation to the Executive will be governed by the
1997 Incentive Plan.
	 
	 	3.	 	Bonus Compensation: The Corporation shall pay the Executive,
within thirty (30) calendar days of termination, his performance
bonus, pro-rated to reflect the date of termination.
	 
	 	4.	 	Medical Benefits: If the Executive elects to continue medical
benefits coverage under COBRA, the Corporation will pay the
applicable COBRA premium for a period of the lesser of eighteen (18)
months or until such time as the Executive obtains other employment
that provides medical benefits coverage, provided the Executive and
any of his eligible dependents elect COBRA continuation coverage.
This provision is otherwise subject to all applicable COBRA
continuation requirements and does not alter the Corporation’s right
to amend or terminate its medical plan.
	 
	 	5.	 	Other Benefits: If the Executive is involved in pre-approved
course work eligible for reimbursement under the Corporation’s
Tuition Assistance Program (“Program”) or has an education
assistance loan outstanding under that Program, the Corporation will
reimburse any remaining balance due on the course work and forgive
any indebtedness in connection with the outstanding education
assistance loan. This provision is otherwise subject to all
applicable Tuition Assistance Program requirements and does not
alter the Corporation’s right to amend or terminate its Program.

	 	 	A “change in control” for purpose of this Agreement shall be deemed to
have occurred if the Corporation is subject to an acquisition in
accordance with Section 2.12 (1) of the Corporation’s 1997 Incentive
Plan, which is attached hereto as Exhibit 1.
	 
	 	 	The privileges, compensation, and benefits set forth in section E survive
the expiration of this Agreement as long as there is a “change in
control” as herein defined during the Term of this Agreement.

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	 	 	All compensation paid by the Corporation under section E will be subject
to all appropriate federal, state and local withholding requirements.
Also, notwithstanding anything contained in this Agreement to the
contrary, to the extent that any payment or distribution of any type to
or for the benefit of the Executive by the Corporation, any affiliate of
the Corporation, any person who acquires ownership or effective control
of the Corporation or ownership of a substantial portion of the
Corporation’s assets (within the meaning of Section 280G of the Internal
Revenue Code of 1986 as amended (the “Code”), and the regulations
thereunder), or any affiliate of such person, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise (the “Total Payment”), is or will be subject to the excise tax
imposed under Section 4999 of the Code (the “Excise Tax”), then the Total
Payments shall be reduced (but not below zero) if and to the extent
necessary so that no portion of the Total Payments will be subject to the
Excise Tax. The Corporation shall reduce or eliminate the Total Payments
by first reducing or eliminating the portion of the Total Payments which
is payable in cash and then by reducing or eliminating payments which are
not payable in cash, in each case in reverse order beginning with
payments or benefits which are paid the farthest in time from the
determination that the Total Payments need to be reduced. All
determinations required to be made under this provision shall be made by
a nationally recognized accounting firm that is the Corporation’s outside
auditor at the time of such determinations.
	 
	 	 	Any dispute between the Executive and the Corporation, it successors and
assigns, involving section E will be resolved by arbitration in
accordance with section Q below, except any 280G determination made by
Corporation’s outside auditor shall be binding, final, and conclusive
upon the Corporation and the Executive.
	 
	F.	 	TERMINATION OF EMPLOYMENT: During the Term of this
Agreement, Executive’s employment is not at-will and may be terminated by
the Corporation only on two bases: (1) Cause; or (2) Without Cause.

	 	(1)	 	As used in this Agreement, “Cause” shall mean that the
Executive:

	 	(a)	 	committed an act or acts of personal dishonesty
intended to result in the Executive’s personal enrichment at
the expense of the Corporation, and which constitute(s) fraud,
embezzlement, grand larceny or any felonious act;
	 
	 	(b)	 	materially failed or refused to perform the
Executive’s essential duties and obligations as an employee of
the Corporation;
	 
	 	(c)	 	committed an act of willful misconduct;

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	 	(d)	 	was convicted of a felony or other serious crime;
	 
	 	(e)	 	has engaged in the unlawful use of narcotics;
	 
	 	(f)	 	engaged in abusive use of alcohol to a degree, or
in a manner, that would materially and adversely affect the
performance of the Executive’s assigned work or degrade the
reputation of the Corporation;
	 
	 	(g)	 	violated the terms of the Confidentiality, Trade
Secrets and Noncompetition Agreement he signed on January 3,
2003;
	 
	 	(h)	 	violated or breached the terms of this Agreement;
or
	 
	 	(i)	 	is unable to perform the essential functions of
his position due to disability, injury, or illness as set
forth in section I below or due to death.
	 
	 	In accordance with these definitions of Cause, the Board, or a
delegated committee of the Board, will in its sole discretion
decide whether the Executive shall be terminated for Cause after
affording the Executive an opportunity to be heard on the matter.
The Board, or the delegated committee of the Board, will in its
sole discretion determine the time, place, and manner of the
opportunity for the Executive to be heard, but to the extent
practicable any such meeting will take place in Montgomery County,
Maryland during regular business hours. If the Executive fails to
appear or to follow the manner of opportunity afforded by the Board
or its committee, the Board, or the delegated committee, may render
its decision without hearing the Executive’s views.

	 	(2)	 	Any reason for termination other than those set forth above
will be deemed to be Without Cause.

	G.	 	TERMINATION WITHOUT CAUSE
— EFFECT ON FUTURE COMPENSATION: In the event Executive is terminated Without Cause and there
has not been a “change in control” as defined in section E, Executive will
be entitled to receive the following compensation and benefits:

	 	1.	 	Base Compensation: The Corporation shall pay the Executive
his then current salary for the remaining Term of this Agreement or
for a period of six (6) months, which ever period is greater. Such
compensation shall be paid in equal monthly payments and will be
subject to all appropriate federal, state and local withholding
requirements.
	 
	 	2.	 	Stock Options: The disposition of any and all stock options
granted by the Corporation to the Executive will be governed by the
1997 Incentive Plan.

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	 	3.	 	Bonus Compensation: The Corporation shall pay the Executive,
within thirty (30) calendar days of termination, his performance
bonus, pro-rated to reflect the date of termination.
	 
	 	4.	 	Medical Benefits: If the Executive elects to continue
medical benefits coverage under COBRA, the Corporation will pay the
applicable COBRA premium for a period of the lesser of eighteen (18)
months or until such time as the Executive obtains other employment
that provides medical benefits coverage, provided the Executive and
any of his eligible dependents elect COBRA continuation coverage.
This provision is otherwise subject to all applicable COBRA
continuation requirements and does not alter the Corporation’s right
to amend or terminate its medical plan.
	 
	 	5.	 	Other Benefits: If the Executive is involved in pre-approved
course work eligible for reimbursement under the Corporation’s
Tuition Assistance Program (“Program”) or has an education
assistance loan outstanding under that Program, the Corporation will
reimburse any remaining balance due on the course work and forgive
any indebtedness in connection with the outstanding education
assistance loan. This provision is otherwise subject to all
applicable Tuition Assistance Program requirements and does not
alter the Corporation’s right to amend or terminate its Program.

	H.	 	TERMINATION WITH CAUSE — EFFECT ON FUTURE COMPENSATION: In the event Executive is terminated for Cause, Executive will
be entitled to no future compensation from the Corporation and any and all
stocks options granted by the Corporation to the Executive will be
disposed of in accordance with the 1997 Incentive Plan. Moreover, the
Executive will not earn any additional compensation after the effective
date of such termination.
	 
	I.	 	DISABILITY: If the Executive is unable to perform
the essential functions of his position due to illness, injury, or
incapacity for a period of more than twelve weeks following the use of all
available Paid Personal Leave (“PPL”), the compensation otherwise payable
to him under this Agreement shall cease and the Corporation may terminate
his employment unless the Board determines otherwise or the Executive is
able to perform the essential functions of his position with reasonable
accommodation.
	 
	J.	 	TERMINATION OF EMPLOYMENT BY EXECUTIVE: Executive
may terminate his employment upon thirty (30) days written notice to the
President and CEO. Unless otherwise provided herein, if the Executive
terminates his employment, the Executive shall only be entitled to base
compensation through the last day actually worked as well as any bonus
compensation for which the work period and performance criteria have been
fully met. The Board may provide the Executive with additional
compensation, if the

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	 	 	Board in its discretion deems such additional
compensation warranted. Also, the disposition of any and all stock
options granted by the Corporation to the Executive will be governed by
the 1997 Incentive Plan.
	 
	K.	 	CONFIDENTIALITY AND NONCOMPETITION: By signing below,
the Executive acknowledges his ongoing and continuing obligation to abide
by the Confidentiality, Trade Secrets and Noncompetition Agreement that he
executed on January 3, 2003 (“Trade Secrets Agreements”), which is
attached hereto as Exhibit 3 and incorporated herein by reference.
	 
	L.	 	NO PRIOR AGREEMENTS: The Executive represents and
warrants that he is not a party or otherwise subject to or bound by the
terms of any contract, agreement or understanding which in any manner
would limit or otherwise affect his ability to perform his obligations
hereunder. The Executive further represents and warrants that his
employment with the Corporation will not require the disclosure or use of
any confidential information belonging to prior employers or to other
persons or entities. The Executive understands that the Corporation does
not expect or desire and in fact disapproves of and forbids the Executive
to use or disclose, in the performance of his duties for the Corporation,
any such confidential information belonging to prior employers or other
persons or entities.
	 
	M.	 	ASSIGNMENT: This Agreement is personal to Executive
and may not be assigned in any way by Executive without prior written
consent by the Board of Directors of the Corporation. Any attempted
assignment by Executive will be void. Notwithstanding anything in this
section to the contrary, however, this Agreement may be assigned by the
Corporation to any parent, subsidiary, successor, or affiliate entity.
The rights and obligations under this Agreement will inure to the benefit
of and will be binding upon the heirs, legatees, administrators, and
personal representatives of Executive and upon the successors,
representatives, and assigns of the Corporation.
	 
	N.	 	ILLEGAL OR INVALID PROVISION: The parties intend for
all provisions of this Agreement to be enforced and enforceable to the
fullest extent permitted by law. If any provision of this Agreement is
held to be illegal, invalid, or unenforceable under present or future laws
in effect during the term hereof, however, that provision will be fully
severable. This Agreement will be construed and enforced as if such
illegal, invalid, or unenforceable provision had never comprised a part
hereof, and the remaining provisions will remain in full force and effect
and will not be affected by the illegal, invalid, or unenforceable
provision or by its severance from this Agreement. Furthermore, in lieu
of each such illegal, invalid, or unenforceable provision, there will be
added automatically, as a part of this Agreement, a provision as similar
in terms to such illegal, invalid, or unenforceable provision as may be
possible and be legal, valid, and enforceable.

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	O.	 	GOVERNING LAW: This Agreement shall be construed and
governed by the laws of the State of Maryland without regard to any
conflict of laws rules or provisions.
	 
	P.	 	ENTIRE AGREEMENT: This Agreement constitutes the
entire Agreement between the Corporation and the Executive. This
Agreement may not be changed orally, but only by an agreement in writing
signed by the parties. This Agreement supersedes all prior agreements,
discussions or statements regarding the Executive’s employment, except for
the Confidentiality, Trade Secrets and Noncompetition Agreement attached
hereto as Exhibit 3, which will survive.
	 
	Q.	 	ARBITRATION: Notwithstanding any other provision in
this Agreement, any claim or controversy relating to or arising out of
this Agreement shall be resolved exclusively by arbitration in accordance
with the commercial rules then obtaining of the American Arbitration
Association. This Arbitration provision, including any challenges to its
enforceability, is governed by the Federal Arbitration Act. The
arbitration shall take place in Montgomery County, Maryland. The
Corporation and Executive shall bear separately their respective
attorney’s fees. The Corporation shall bear the cost of the arbitration
and any fees required by the commercial rules then obtaining of the
American Arbitration Association.
	 
	R.	 	MUTUAL UNDERSTANDING: Each party has read this
entire Agreement, fully understands the contents hereof, has had the
opportunity to obtain independent advice as to its legal effect, and is
under no duress or obligation of any kind to execute it. This Agreement
reflects the mutual understanding of the parties with the respect to all
subject matters addressed herein and will be construed accordingly.

BioReliance Corporation

	 	 	 	 	 
	By:	   /s/ William J. Gedale

William J. Gedale

Chairman, Compensation Committee

Board of Directors	 	By:	   /s/ David E. Jackson

David E. Jackson
	 
	Address: 14920 Broschart Road

Rockville, MD 20850
	 
	Date: 
   January 8,
2003                    	 	
Date:     3 January 2003                    

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