Document:

exv10w4

 

Exhibit 10.4

LEASE AGREEMENT

between

ARNELL CORPORATION, as Agent

and

ALLIANCE HOME FUNDING, LLC

Table of Contents

	 	 	 	 	 	 	 	 	 
	SECTION				PAGE
	
				

	 	1.	 	 	
    DEFINITIONS
    	 	 	1	 
	 	2.	 	 	
    LEASE TERM
    	 	 	3	 
	 	 3.	 	 	
    BASIC RENTAL
    	 	 	4	 
	 	 4.	 	 	
    BASIC RENTAL ESCALATION
    	 	 	5	 
	 	 5.	 	 	
    SECURITY DEPOSIT
    	 	 	5	 
	 	 6.	 	 	
    LANDLORD’S OBLIGATIONS
    	 	 	5	 
	 	 7.	 	 	
    IMPROVEMENT OF THE PREMISES
    	 	 	6	 
	 	 8.	 	 	
    OPERATING EXPENSES
    	 	 	8	 
	 	 9.	 	 	
    USE
    	 	 	9	 
	 	10.	 	 	
    TENANT’S REPAIRS AND ALTERATIONS
    	 	 	10	 
	 	11.	 	 	
    ASSIGNMENT AND SUBLETTING
    	 	 	11	 
	 	12.	 	 	
    INDEMNITY
    	 	 	13	 
	 	13.	 	 	
    SUBORDINATION
    	 	 	14	 
	 	14.	 	 	
    RULES AND REGULATIONS
    	 	 	15	 
	 	15.	 	 	
    INSPECTION
    	 	 	15	 
	 	16.	 	 	
    CONDEMNATION
    	 	 	15	 
	 	17.	 	 	
    FIRE OR OTHER CASUALTY
    	 	 	16	 
	 	18.	 	 	
    HOLDING OVER
    	 	 	17	 
	 	19.	 	 	
    TAXES
    	 	 	17	 
	 	20.	 	 	
    EVENTS OF DEFAULT
    	 	 	19	 
	 	21.	 	 	
    REMEDIES
    	 	 	20	 
	 	22.	 	 	
    SURRENDER OF PREMISES
    	 	 	22	 

- i -

 

LEASE AGREEMENT

between

ARNELL CORPORATION, as Agent

and

ALLIANCE HOME FUNDING, LLC

	 	 	 	 	 	 	 	 	 
					
	 	23.	 	 	
    ATTORNEY’S FEES
    	 	 	22	 
	 	24.	 	 	
    INTENTIONALLY OMITTED
    	 	 	22	 
	 	25.	 	 	
    MECHANICS’ LIENS
    	 	 	22	 
	 	26.	 	 	
    WAIVER OF SUBROGATION; INSURANCE
    	 	 	23	 
	 	27.	 	 	
    INTENTIONALLY OMITTED
    	 	 	23	 
	 	28.	 	 	
    BROKERAGE
    	 	 	23	 
	 	29.	 	 	
    ESTOPPEL CERTIFICATES
    	 	 	24	 
	 	30.	 	 	
    NOTICES
    	 	 	24	 
	 	31.	 	 	
    FORCE MAJEURE
    	 	 	25	 
	 	32.	 	 	
    SEVERABILITY
    	 	 	26	 
	 	33.	 	 	
    AMENDMENTS; WAIVER; BINDING EFFECT
    	 	 	26	 
	 	34.	 	 	
    QUIET ENJOYMENT    	 	 	26	 
	 	35.	 	 	
    LIABILITY OF TENANT
    	 	 	26	 
	 	36.	 	 	
    LANDLORD LIABILITY
    	 	 	26	 
	 	37.	 	 	
    CERTAIN RIGHTS RESERVED BY LANDLORD
    	 	 	27	 
	 	38.	 	 	
    FINANCIAL STATEMENTS
    	 	 	27	 
	 	39.	 	 	
    NOTICE TO LENDER
    	 	 	28	 
	 	40.	 	 	
    MISCELLANEOUS
    	 	 	28	 
	 	41.	 	 	
    ADDITIONAL RENT
    	 	 	29	 
	 	42.	 	 	
    ENTIRE AGREEMENT
    	 	 	29	 
	 	43.	 	 	
    LEGAL PROCEEDINGS
    	 	 	29	 
	 	44.	 	 	
    LAWS AND REGULATIONS
    	 	 	29	 
	 	45.	 	 	
    AMERICANS WITH DISABILITIES ACT
(“ADA”)
    	 	 	29	 
	 	46.	 	 	
    ENVIRONMENTAL PROTECTIONS
    	 	 	30	 
	 	47.	 	 	
    PARKING
    	 	 	31	 

- ii -

 

LEASE AGREEMENT

between

ARNELL CORPORATION, as Agent

and

ALLIANCE HOME FUNDING, LLC

	 	 	 	 	 	 	 	 	 
					
	 	48.	 	 	
    OPTION TO TERMINATE
    	 	 	32	 
	 	49.	 	 	
    OPTION TO RENEW
    	 	 	32	 
	 	50.	 	 	
    EXHIBITS
    	 	 	33	 

- iii -

 

LEASE AGREEMENT

between

ARNELL CORPORATION, as Agent

and

ALLIANCE HOME FUNDING, LLC

DATA SHEET

This Data Sheet is an integral part of this Lease
and all of the terms hereof are incorporated into this Lease in
all respects. In addition to the other provisions which are
elsewhere in this Lease, the following, whenever used in this
Lease, shall have the meanings set forth in this Data Sheet.

	 	 	 	 	 
	
    (a)
    	 	
    Premises
    	 	
    Suite No. 100 in the Building, generally
    outlined on the floor plan attached hereto as Exhibit A
    (Section 1(k)).
    
	 
	
    (b)
    	 	
    Area of Premises
    	 	
    Approximately 1,541 rentable square feet on the
    first (1st ) floor of the Building (Exhibit A
    and Section 1(k)).
    
	 
	
    (c)
    	 	
    Building
    	 	
    10400 Eaton Place, Fairfax, Virginia
    (Section 1(d)).
    
	 
	
    (d)
    	 	
    Basic Rental
    	 	
    Payable in equal monthly installments of
    $3,210.42, subject to adjustment as herein provided (Sections
    1(b) and 3).
    
	 
	
    (e)
    	 	
    Annual Basic Rental
    	 	
    $38,525.00 (Section 3).
    
	 
	
    (f)
    	 	
    Annual Basic Rental

    Escalation
    	 	
    Three percent (3%) of the escalated Basic Rental
    then in effect (Section 4).
    
	 
	
    (g)
    	 	
    Additional Rent
    	 	
    See Section 41.
    
	 
	
    (h)
    	 	
    Lease Term
    	 	
    Five (5) years and zero months, commencing on the
    Commencement Date (Sections 1(i) and 2).
    
	 
	
    (i)
    	 	
    Commencement Date
    	 	
    See Section 1(c).
    
	 
	
    (j)
    	 	
    Building Operation Hours
    	 	
    Monday through Friday, 8:00 a.m. to
    6:00 p.m. and Saturday, 9:00 a.m. to 1:00 p.m.
    
	 
	
    (k)
    	 	
    Permitted Use
    	 	
    Any general business office purposes, banking
    purposes and related uses and for no other purpose (Sections
    1(j) and 9).
    
	 
	
    (l)
    	 	
    Tenant’s Proportionate

    Share of Building Space
    	 	
    1.50% (See Section 1(n)).
    
	 
	
    (m)
    	 	
    Tenant’s Proportionate

    Share of Parking Spaces
    	 	
    3.0 spaces per 1000 rentable square feet
    (Section 47).
    

- iv -

 

LEASE AGREEMENT

between

ARNELL CORPORATION, as Agent

and

ALLIANCE HOME FUNDING, LLC

 

			
	
    (n)  Brokers Involved
    		
    Polinger Shannon & Luchs Company and
    Transwestern Carey Winston
    
	 
	
    (o)  Security Deposit
    		
    See Sections 1(m) and 5.
    
	 
	
    (p)  Notices
    		
    if to Landlord:
    
	 
	
		
    c/o Polinger Shannon & Luchs Company 

     5530 Wisconsin Avenue, Suite 1000 

     Chevy Chase, Maryland 20815
    
	 
	
		
    with a copy to:
    
	 
	
		
    Beverly L. Crump, Esq. 

     11 South 12th Street 

     Richmond, VA 23219
    
	 
	
		
    if to Tenant:
    
	 
	
		
    Paul Harbolick 

     Alliance Home Funding, LLC 

     12735 Shops Lane 

     Fairfax, VA 22033
    

- v -

 

LEASE AGREEMENT

     
THIS LEASE AGREEMENT
is entered into as of the 8 day of May, 2001, between
ARNELL CORPORATION, agent for Eaton Place Limited
Partnership, et. al. (hereinafter called
“Landlord”), whose address for purposes hereof is
c/o Polinger Shannon & Luchs Company, 5530
Wisconsin Avenue, Suite 1000, Chevy Chase,
Maryland 20815 (hereinafter called “Landlord”),
and ALLIANCE HOME FUNDING, LLC,
a                 limited
liability company (hereinafter called “Tenant”), whose
address for purposes hereof is in care of the Premises.

1.     DEFINITIONS.

     
(a) “Basic Cost”: The actual costs
incurred by the Landlord in operating and maintaining the
Building and the Land during each calendar year of the Lease
Term for which Landlord has not been reimbursed by insurance
proceeds, condemnation awards or otherwise.

     
Such costs shall include, by way of example
rather than of limitation, (i) charges or fees for, and
taxes on, the furnishing of electricity, water, sewer service,
gas, fuel, or other utility services to the Building and the
Land; (ii) costs of providing elevator, janitorial and
trash removal service, restriping, resurfacing, maintaining and
repairing all walkways, roadways and parking areas on the Land,
security costs, and cost of maintaining grounds, common areas
and mechanical systems of the Building and the Land;
(iii) all other costs of maintaining and repairing any or
all of the Building or Land; (iv) all costs reasonably
allocated by Landlord to the common areas of the Building and
the Land in a multi-building development; (v) charges or
fees for any necessary governmental permits and licenses;
(vi) management fees (limited to those which are reasonable
and do not materially exceed those which are customary for
buildings of similar age and size in the Metropolitan
Washington, D.C. market), overhead and expenses reasonably
related to management of the Building) (including salaries for
personnel directly responsible for management of the Building);
(vii) premiums for hazard, liability, workmen’s
compensation or similar insurance upon any or all of the
Building and the Land; (viii) costs arising under service
contracts with independent contractors; and (ix) the cost
of any other items which, under generally accepted accounting
principles consistently applied from year to year with respect
to the Building or the Land, constitute operating or maintenance
costs attributable to any or all of the Building or the Land.

     
Such costs shall not include (i) the expense
of principal and interest payments made by the Landlord pursuant
to the provisions of any mortgage or deed of trust covering the
Building or the Land; (ii) any deduction for depreciation
of the Building taken on the landlord’s income tax returns;
or (iii) the cost of capital improvements made to the
Building, other than capital improvements, modifications or
equipment required by federal, state or local ordinance, rule,
regulation or law or determined by Landlord in good faith to
result in savings or reductions in Basic Cost generally, in
which case the cost thereof shall be included in Basic Cost for
the calendar year in which the cost shall have been incurred and
in subsequent calendar years, on a straight line basis, such
items will be amortized over an appropriate period and with an
appropriate interest factor selected in good faith by Landlord.
If Landlord shall have leased any 

 

such items of capital equipment designed to
result in savings or reductions in Basic Cost, then the rental
and other costs paid pursuant to such leasing shall be included
in Basic Cost for each calendar year in which they shall have
been incurred.

     
In determining Basic Cost, where less than 95% of
the Building’s rentable square footage is occupied during
all or any part of a year, those items of the Basic Cost which
vary according to occupancy, such as electricity and janitorial
services, shall be increased to that amount which would have
been incurred had the Building been 95% occupied during the
entire year.

     
(b) “Basic Rental”: Payable in
equal monthly installments of $3,210.42, subject to adjustment
as herein provided.

     
(c) “Base Year Stop”: The Basic
Cost incurred during the calendar year 2001 divided by the
number of rentable square feet in the Building.

     
(d) “Building”: The office
building which has been constructed on land located at 10400
Eaton Place, Fairfax, Virginia, and known as The Carolyn
Building.

     
(e) “Commencement Date”: The
earlier of: (i) the date of Substantial Completion or
(ii) the date the Tenant or any one claiming under or
through the Tenant first occupies the Premises or any portion
thereof. The anticipated Commencement Date is July 1, 2001.

     
(f) “Event of Default”: As defined
in Section 20 of this Lease.

     
(g) “Excess”: As defined in
Section 8 of this Lease.

     
(h) “Land”: The entire tract of
land on which the Building is located and upon which other
buildings are located which have shared common facilities, and
subject from time to time, to (i) increase through the
acquisition of adjoining properties, and (ii) reduction
through the sale or transfer by Landlord or the reservations of
any such property from the development of which the Building is
a part. The term Land shall also include any property that must
be maintained by Landlord due to the existence of any public or
private easement.

     
(i) “Lease Term”: The period
commencing on the Commencement Date and continuing for five
(5) years and zero (0) months thereafter; provided,
however, if the Commencement Date commences on a date other than
the first day of a calendar month, the Lease Term shall consist
of, in addition to the number of years and months provided
above, the remainder of the calendar month during which this
Lease is deemed to have commenced.

     
(j) “Permitted Use”: General
banking and business office purposes and related uses, and for
no other purpose, subject to the provisions of Section 9.

- 2 -

 

     
(k) “Premises”: Suite No. 100
in the Building, generally outlined on the floor plan attached
hereto as Exhibit A and consisting of approximately
1,541 rentable square feet. The Premises shall be measured in
accordance with the Modified Washington, D.C. Association of
Realtors Standard Method of Measurement for Office Buildings,
and may be confirmed by Tenant’s architect, at
Tenant’s expense.

     
(l) “Rules and Regulations”: The
Landlord’s rules and regulations sent to Tenant in writing
from time to time, as amended or substituted for from time to
time, the current form of which is attached hereto as
Exhibit C.

     
(m) “Security Deposit”: $3,210.42.

     
(n) “Tenant’s Proportionate
Share”: 1.50%. Such percentage is equal to a fraction, the
numerator of which equals the number of rentable square feet
within the Premises and the denominator of which equals the
total number of rentable square feet in the Building.

     
(o) “Substantial Completion”: The
date when the work to be performed by Landlord in the Premises
in accordance with this Lease shall have been substantially
completed notwithstanding that certain details of construction,
mechanical adjustment or decoration remain to be performed, the
noncompletion of which would not materially interfere with the
Tenant’s use of the Premises.

     
For purposes of determining the date of
Substantial Completion, there shall not be considered the
duration of any delay which is caused by: (i) changes in
the work to be completed by Landlord in readying the Premises
for Tenant’s occupancy, which changes have been requested
by Tenant after the approval by Landlord and Tenant of the
Tenant Plans; (ii) delays, not caused by Landlord, in
furnishing materials or procuring labor required by Tenant for
installations or work in the Premises which are not encompassed
within Standard Tenant Work; (iii) any failure by Tenant,
to furnish any required plan, information, approval or consent
(including, without limitation, the Tenant Plans) within the
required period of time, or any failure to fully and completely
cooperate with Landlord in the preparation of the Tenant Plans;
or (iv) the performance of any work or activity in the
Premises by Tenant or any of its employees, agents or
contractors. The decision of Landlord’s architect shall be
finally determinative of the date of Substantial Completion.

2.     LEASE
TERM.

     
(a) Landlord, in consideration of the rent
to be paid and the other covenants and agreements to be
performed by Tenant and upon the terms hereinafter stated, does
hereby lease, demise and let unto Tenant the Premises, as
defined herein and generally outlined on the floor plan attached
hereto as Exhibit A, commencing on the Commencement
Date and ending, without the necessity of notice from either
party to the other, such notice being expressly waived, on the
last day of the Lease Term, unless sooner terminated as herein
provided.

- 3 -

 

     
(b) If the Landlord shall be unable to
tender possession of the Premises on the Commencement Date, the
Landlord shall not be liable for any damage caused thereby, nor
shall this Lease be void or voidable by Tenant, but in such
event, unless the delay results (i) from failure of Tenant
to perform in accordance with the requirements of the Lease or
(ii) from any delay in Landlord’s ability to tender
possession of the Premises caused by Tenant, no rental shall be
payable by Tenant prior to actual tender to Tenant of possession
of the Premises.

     
(c) By occupying the Premises, Tenant shall
be deemed to have accepted the same as suitable for the purpose
herein intended and to have acknowledged that the Premises
comply fully with Landlord’s obligations. Within three
(3) business days of the Commencement Date, Tenant agrees
to execute and return to Landlord a letter prepared by Landlord
confirming the Commencement Date, a copy of which is attached
hereto as Exhibit B, certifying that Tenant has
accepted delivery of the Premises and that the condition of the
Premises complies with Landlord’s obligations hereunder.

3.     BASIC
RENTAL.

     
(a) Tenant promises and agrees to pay
Landlord the Basic Rental (subject to adjustments as hereinafter
provided) without demand, notice, deduction, counterclaim or
set-off, for each month of the entire Lease Term. The first
monthly installment shall be due and payable upon execution of
this Lease. The Basic Rental for each subsequent month shall be
paid in advance beginning on the first day of the calendar month
following the expiration of the first calendar month of the
Lease Term and continuing thereafter on or before the first day
of each succeeding calendar month during the term hereof;
provided, however, that Basic Rental for the second calendar
month shall be prorated based on one-three hundred sixtieth
(1/360th) of the current annual Basic Rental for each day of the
first partial month, if any, this Lease is in effect and shall
be due and payable as aforesaid.

     
(b) In the event any installment of the
Basic Rental, or any other sums which became owing by Tenant to
Landlord under the provisions hereof, are not received within
five (5) days after the due date thereof (without in any
way implying Landlord’s consent to such late payment),
Tenant shall pay, in addition to such installment of the Basic
Rental or such other sums owed, and not as a penalty, additional
rent in the form of a late payment charge equal to ten percent
(10%) of such monthly installment of the Basic Rental or such
other sums owed for each month or part thereof such payment is
overdue. Notwithstanding the foregoing, the foregoing late
charges shall not apply to any sums which may have been advanced
by Landlord to or for the benefit of Tenant pursuant to the
provisions of this Lease, it being understood that such sums
shall bear interest from the date of the advance until paid in
full, which Tenant hereby agrees to pay to Landlord, at the rate
of fourteen percent (14%) per annum or the highest rate
permitted by law, whichever is less.

     
(c) All payments due hereunder, including
payment of the security deposit, shall be made payable to
“Eaton Place Limited Partnership.”

- 4 -

 

 

		
	4.	
    BASIC RENTAL
    ESCALATION.

     
The Basic Rental shall be increased annually,
effective on each anniversary of the first (1st) day of the
first full month after the Commencement Date during the term
hereof if the Commencement Date is on a day other than the first
(1st) day of the month, or on the anniversary of the
Commencement Date if the Commencement Date is on the first (1st)
day of the month, by an amount equal to three percent (3%) of
the escalated Basic Rental then in effect, payable as follows:

	 	 	 	 	 	 	 	 	 
	Year		Month Basic Rental		Annual Basic Rental
	
		
		

	
    
      1
    

    	 	$	3,210.42	 	 	$	38.525.00	 
	
    
      2
    

    	 	$	3,306.73	 	 	$	39,680.75	 
	
    
      3
    

    	 	$	3,405.93	 	 	$	40,871.17	 
	
    
      4
    

    	 	$	3,508.11	 	 	$	42,097.31	 
	
    
      5
    

    	 	$	3,613.35	 	 	$	43,360.23	 

 

		
	5.	
    SECURITY
    DEPOSIT.

     
The Security Deposit, which shall be paid upon
execution of this Lease, shall be held by Landlord without
liability for interest and not in trust or in a separate
account, as security for the performance by Tenant of
Tenant’s covenants and obligations under this Lease. The
Security Deposit shall not be considered an advance payment of
rental or a measure of Landlord’s damages in case of
default by Tenant. Upon the occurrence of any Event of Default
by Tenant, Landlord may, from time to time in its sole
discretion, without prejudice to any other remedy, use and apply
the Security Deposit to the extent necessary to make good any
arrearages of rent and any other damage, injury, expense or
liability suffered by Landlord by such Event of Default.
Following any such application of the Security Deposit, Tenant
shall pay to Landlord on demand as additional rent the amount so
applied in order to restore the Security Deposit to its original
amount. If Tenant is not then in default hereunder, any
remaining balance of the Security Deposit shall be returned by
Landlord to Tenant within sixty (60) days after the termination
of this Lease and (i) Tenant shall have surrendered the
entire Premises to Landlord, (ii) Landlord shall have
inspected the Premises after such vacation, and
(iii) Tenant shall have complied with all of the terms,
conditions and covenants in the Lease. If Landlord transfers its
interest in the Premises during the Lease Term, Landlord shall
assign the Security Deposit to the transferee and thereafter
shall have no further liability for the return of such Security
Deposit.

 

		
	6.	
    LANDLORD’S
    OBLIGATIONS.

     
(a) Subject to the limitation hereinafter
set forth, Landlord agrees, while Tenant is occupying the
Premises and is not in breach of, or default under, this Lease,
to furnish to Tenant: (i) facilities to provide water at
those points of supply both within the Premises and those
provided for general use of tenants of the Building;
(ii) facilities to provide a supply of electrical current
reasonably necessary for general business office and banking use
and occupancy of the Premises and electric lighting and a supply
of electrical current to the common areas of the Building;
(iii) heating and refrigerated air conditioning in season;
and (iv) elevator and janitorial 

- 5 -

 

service to the Premises, all such services to be
provided in scope, quality and frequency to those services being
customarily provided by landlords in comparable office buildings
in the surrounding area. Heating, ventilation and air
conditioning requirements and standards under this lease shall
be subject, however, to such regulations as the Department of
Energy or other local, state or federal governmental agency,
Board or commission shall adopt from time to time. In addition,
Landlord agrees to maintain the public and common areas of the
Building, such as lobbies, stairs, corridors and restrooms, in
reasonably good order and condition: provided, however, that
Tenant shall reimburse Landlord, upon demand, for all repairs
and additional maintenance resulting from damages to such public
or common areas caused by Tenant, or its employees, agents or
invitees. Landlord reserves the right, exercisable without
notice and without liability to Tenant for damage or injury to
property, persons or business and without effecting an eviction,
constructive or actual, or disturbance of Tenant’s use or
possession of the Premises, or giving rise to any claim by
Tenant for setoff or abatement of rent, to decorate and to make
repairs, alterations, additions, modifications, changes or
improvements, whether structural or otherwise, in and about the
Building, or any part thereof, and for such purposes to enter
upon the Premises and, during the continuance of any such work,
to temporarily close doors, entryways, public space and
corridors in the Building and to interrupt or temporarily
suspend Building services and facilities; provided, however,
that Landlord shall use commercially reasonable efforts to avoid
disrupting Tenant’s use of the Premises.

     
(b) If Landlord, to any extent, fails to
make available any of the services to be provided by Landlord
expressly set forth above or if any slowdown, stoppage or
interruption of, or any change in the quantity, character or
availability of, the services to be provided by Landlord
expressly set forth above occurs, such failure or occurrence
shall not render Landlord liable in any respect for damages to
either person, property or business, nor be construed as an
eviction of Tenant or work an abatement of rent, nor relieve
Tenant from fulfillment of any covenant or agreement hereof.
Should any equipment or machinery furnished by Landlord break
down or for any cause beyond Landlord’s reasonable control
cease to function properly, Landlord shall use reasonable
diligence to repair same promptly, but Tenant shall have no
claim for abatement of rent or damages on account of any
interruptions in service occasioned thereby or resulting
therefrom.

7.     IMPROVEMENT
OF THE PREMISES.

     
(a) Landlord and Tenant agree to comply with
the following schedule in buildout of the Premises:

		
	 	     
    (i) If a Space Plan has not as yet been
    prepared and approved by Landlord and Tenant, Tenant will meet
    with Landlord or its agents within three (3) business days after
    full execution of this Lease and shall provide Landlord all
    information reasonably necessary, to prepare a Space Plan for
    the Premises. Within three (3) business days after delivery by
    Landlord to Tenant of the Tenant’s Space Plan, Tenant may
    accept the Space Plan as proposed or request reasonable
    modifications to such Space Plan. Any modifications to the Space
    Plan made after such period shall be made at Tenant’s
    expense and, if delay in occupancy occurs as a result of such
    modifications, Tenant shall be liable to Landlord for Basic
    Rental for each day 

    

- 6 -

 

		
	 	
    beyond the projected Commencement Date,
    attributable to such modification of the Space Plan, that
    delivery of the Premises is delayed.
    

		
	 	     
    (ii) Upon Tenant’s acceptance of the
    Space Plan, either because of Tenant’s approval or failure
    to object within the requisite three (3) business day period,
    Landlord shall prepare and deliver to Tenant detailed floor plan
    layouts, together with working drawings and written instructions
    sufficiently detailed to enable Landlord to enter into contracts
    (herein called “Construction Documents”) with respect
    to and reflecting the partitions and improvements in the
    Premises. Tenant shall fully and completely cooperate with
    Landlord in the preparation of the Construction Documents, shall
    promptly respond to Landlord’s requests for information and
    approvals within three (3) business days after inquiry, and
    shall use its best efforts to assist Landlord to complete the
    Construction Documents as soon as possible. Tenant agrees to
    deliver to Landlord, not later than three (3) business days
    after delivery of the Construction Documents to Tenant, an
    original executed copy of the Construction Documents approved by
    Tenant; provided, however, if Tenant, in good faith, reasonably
    objects to any aspect of the Construction Documents submitted by
    Landlord, Tenant shall specify in detail any objection to such
    Construction Documents as submitted to Tenant in a written
    notice to Landlord within such 3-day period. Landlord shall, if
    applicable, modify such Construction Documents to address
    Tenant’s written objections, and submit new Construction
    Documents to Tenant for approvals. Notwithstanding the
    foregoing, the Construction Documents shall remain subject to
    Landlord’s review and approval, which approval shall not be
    unreasonably withheld, and shall be deemed modified to take
    account of any changes reasonably required by Landlord. If
    Tenant fails to timely deliver the Construction Documents as
    required herein or makes modifications to the Construction
    Documents after the deadlines provided in this subsection,
    Tenant shall (1) pay to Landlord all reasonable expenses
    incurred by Landlord due to Tenant’s modifications and/or
    delay in delivering the Construction Documents; and (2) pay
    to Landlord as additional rent a per diem charge for each day
    beyond the initially projected Commencement Date that occupancy
    is delayed due to Tenant’s failure to timely comply with
    the requirements in this Section.
    
	 
	 	     
    (iii) Time is of the essence as to all dates
    provided in this subsection.
    

     
(b) Any changes to any approved Construction
Documents desired by Tenant shall be submitted in writing and in
detail to Landlord and shall be subject to Landlord’s
consent, which consent shall not be unreasonably withheld.

     
(c) Landlord shall, in a good and
workmanlike manner, improve and complete the Premises in
accordance with the Construction Documents by a general
contractor or construction manager (“Landlord’s
Contractor”), determined by Landlord in its reasonable
discretion. Landlord reserves the right however, (i) to
make substitutions of material of equivalent grade and quality
when and if any specified material shall not be readily and
reasonably available, and (ii) to make changes necessitated
by conditions met in the course of construction, provided that
Tenant’s approval of any substantial change shall first be
obtained (which approval shall not be unreasonably withheld or
delayed so long as there shall be general conformity with
Construction Documents).

- 7 -

 

     
(d) In the completion and preparation of the
Premises in accordance with the Construction Documents, Landlord
agrees to perform at its own expense those items of work set
forth on the Tenant Space Plan (all work therein collectively
referred to as “Standard Tenant Work”), to the extent
required by the Construction Documents. All work to be performed
by Landlord in addition to or in substitution for Standard
Tenant Work is hereinafter referred to as “Special Tenant
Work.” All Special Tenant Work shall be furnished,
installed and performed by Landlord, utilizing a general
contractor or construction manager (“Landlord’s
Contractor”) selected by Landlord (which may be an
affiliate of Landlord or a partner in Landlord or an affiliate
of a partner in Landlord) for and on behalf of Tenant and at
Tenant’s sole expense, based on Landlord’s
out-of-pocket contract or purchase price for materials, labor
and service, including, without limit, any reasonable
contractor’s fee for the contractor’s overhead and
profit and charges for cutting, patching, cleaning up and
removal of waste and debris, plus architects’ and
engineers’ fees, plus the product obtained by multiplying
all of the foregoing (as reduced by appropriate credits for
substituted Standard Tenant Work) by fifteen percent (15%) for
Landlord’s expenses and profit in handling the substitution.

     
(e) Tenant shall pay Landlord as additional
rent for all Special Tenant Work from time to time during the
progress of the work, within five (5) days after Landlord
shall have given Tenant an invoice or invoices therefor, in
amounts representing Landlord’s cost of such Special Tenant
Work performed (including, for this purpose, material for
Special Tenant Work purchased and delivered to the Building to
the date of the invoice), less the amounts paid by Tenant on
account. Any failure by Tenant to pay for all Special Tenant
Work shall constitute failure to pay rent when due and an Event
of Default by Tenant hereunder, giving rise to all remedies
available to Landlord under this Lease and at law or equity for
non-payment of rent.

8.     OPERATING
EXPENSES.

     
(a) During the term of this Lease, Tenant
shall pay as additional rent an amount (per each square foot
within the Premises) equal to the excess (“Excess”)
from time to time by which the per square foot Basic Cost (which
shall be calculated by dividing the Basic Cost by the total
rentable square feet in the Building) exceeds the Base Year
Stop. Landlord, at its option, may collect such additional rent
for each calendar year in a lump sum, to be due and payable
within thirty (30) days after Landlord furnishes to Tenant
a statement of actual Basic Costs for the previous year, or,
beginning with the first day of the thirteenth month following
the Commencement Date, and on each January 1, thereafter,
Landlord shall also have the option to make a good faith
estimate of the Excess for each upcoming calendar year and may
require the monthly payment of such additional rent equal to
one-twelfth ( 1/12) of such estimate.

     
(b) By May 1 of each calendar year
during Tenant’s occupancy and the calendar year following
termination of this Lease, or as soon thereafter as practical,
Landlord shall furnish to Tenant a statement of Landlord’s
actual Basic Cost for the previous year. If for any calendar
year additional rent collected for the prior year as a result of
Landlord’s estimate of Basic Cost is (i) in excess of
the additional rent actually due during such prior year, then
Landlord shall either credit such overpayment towards
Tenant’s estimated share of operating expenses for the next
year or refund to Tenant any overpayment, or (ii) less than
the additional rent actually due during such 

- 8 -

 

prior year, then Tenant shall pay to Landlord, on
demand, any underpayment with respect to the prior year.

     
(c) Each statement furnished by Landlord to
Tenant shall be conclusive and binding upon Tenant unless,
within thirty (30) days after receipt of such statement,
Tenant delivers to Landlord a written notice specifying the
particular details for which such statement is claimed to be
incorrect. Pending the determination of such dispute, Tenant
shall pay without delay the full amount of the additional rent
payable by Tenant in accordance with each such statement that
Tenant is disputing. Without limiting the preceding sentence,
Tenant, or a certified public accountant acting as Tenant’s
agent, shall have the right, during Landlord’s normal
business hours and after reasonable notice, to inspect the books
and records of Landlord applicable to the determination of the
statement of additional rent payable by Tenant for the purpose
of verifying in good faith the information contained in such
statement for a period of up to one year after the receipt of
such statement by Tenant.

     
(d) Should Tenant require any additional
work or service, including but not limited to heating,
ventilation and air conditioning (“HVAC”) furnished
outside Landlord’s normal operating hours of 8:00 a.m.
to 6:00 p.m., Monday through Friday, 9:00 a.m. to
1:00 p.m., Saturday, excluding holidays, Landlord may, upon
reasonable advance notice by Tenant, furnish such additional
services at a charge not less than Landlord’s actual cost,
plus overhead for the additional services provided, it being
agreed that the cost to the Landlord of such additional services
shall not be considered or treated as Basic Cost.

     
(e) Landlord may, at any time in its sole
discretion, require separate metering for gas, electric power or
for any other utility service required by Tenant if such service
is deemed by Landlord to be in excess of Building standard usage
or for any other reason, in which case the cost of such metering
shall be at Tenant’s sole cost and expense, due and payable
upon demand by Landlord, and in which event Tenant shall pay for
all such utility service in excess of its normal and customary
usage, as metered. For any utility services that are separately
metered as prescribed herein, the amount of said services which
has been included in the calculation of the Base Year Stop or
the calculation of Basic Cost shall be excluded therefrom.

     
(f) Notwithstanding any expiration or
termination of this Lease prior to the end of the Lease Term,
Tenant’s obligations to pay any and all additional rent
pursuant to this Lease shall continue and shall cover all
periods up to the expiration or termination date of this Lease.
Tenant’s obligation to pay any and all additional rent or
other sums owing by Tenant to Landlord under this Lease shall
survive any expiration or termination of this Lease.

9.     USE.

     
Tenant shall use the Premises only for the
Permitted Use. Tenant will not occupy or use the Premises, or
permit any portion of the Premises to be occupied or used, for
any business or purpose other than the Permitted Use or for any
use or purpose which is unlawful, in part or in whole,
disreputable in any manner, or extra hazardous, nor will Tenant
permit anything to be done which shall in any way cause
substantial noise, vibrations or fumes, or increase the 

- 9 -

 

rate of insurance on the Building or contents or
cause any cancellation of any insurance policy covering the
Building or any portion of its contents. In the event that there
shall be any increase in the rate of insurance on the Building
or contents created by Tenant’s acts, omissions or conduct
of business, Tenant hereby agrees to pay to Landlord the amount
of such increase on demand. Tenant will conduct its business and
control its agents, employees and invitees in such a manner as
not to create any nuisance, nor interfere with or disturb the
possession of other tenants or Landlord in the management of the
Building. Tenant shall not, without the prior written consent of
Landlord, paint, install lighting or decorations, or install any
signs, window or door lettering or advertising media of any type
on or about the Premises or any part thereof.

10.     TENANT’S
REPAIRS AND ALTERATIONS.

     
(a) Tenant shall not in any manner deface or
injure or make unapproved modifications of the Premises or the
Building and will pay the cost of repairing any damage or injury
done to the Premises or the Building or any part thereof by
Tenant or Tenant’s agents, employees or invitees. Tenant
shall throughout the Lease Term take good care of the Premises
and keep them free from waste and nuisance of any kind. Tenant
agrees, at Tenant’s sole cost and expense, to keep the
Premises, including, without limitation, all fixtures installed
by Tenant and any plate glass and special store fronts, in good
condition and make all necessary non-structural repairs and
replacements except those caused by fire, casualty or acts of
God covered by Landlord’s fire insurance policy covering
the Building. Such repairs and replacements shall be in quality
equal to the original work and installation. If Tenant fails to
make such repairs within fifteen (15) days after the
occurrence of the damage or injury, Landlord may, at its sole
option, make such repair, and Tenant shall, upon demand
therefor, pay Landlord for Landlord’s cost thereof plus
fifteen percent (15%) for overhead costs.

     
(b) Notwithstanding anything in the Lease to
the contrary, Tenant will not make or allow to be made any
alterations or physical additions in or to the Premises,
including changes in locks on doors, plumbing, lighting, wiring
or partitions, without the prior written consent of Landlord.
All maintenance, repairs, alterations, additions or improvements
shall be conducted only by contractors or subcontractors
approved in advance in writing by Landlord, it being understood
that Tenant shall procure and maintain, and shall cause such
contractors and subcontractors engaged by or on behalf of Tenant
to procure and maintain, insurance coverage against such risks,
in such amounts and with such companies as Landlord may require
in connection with any such maintenance, repair, alteration,
addition or improvement.

     
(c) At the end or other termination of this
Lease, Tenant shall deliver up the Premises with all
improvements located therein in good repair and condition,
reasonable wear and tear and casualty damage excepted, and shall
deliver to Landlord all keys to the Premises. All alterations,
additions or improvements (whether temporary or permanent in
character) made in or upon the Premises by Landlord or Tenant
shall be Landlord’s property upon termination of this Lease
and shall remain on the Premises without compensation to Tenant;
provided, however, that if Landlord elects to have Tenant remove
any alteration, addition, improvement or partition, Landlord
shall make such election upon giving consent to such alteration,
addition, improvement or partition. Tenant shall then remove
such alteration, addition, improvement or partition whether 

- 10 -

 

erected by Landlord or Tenant, and shall restore
the Premises to its original condition by the date of
termination of this Lease or upon earlier vacating of the
Premises, except as provided herein. Landlord hereby elects to
have any and all computer and/or telephone cables installed by
Tenant or which may in the future be installed by Tenant,
removed upon the termination of the Lease or upon Tenant’s
earlier vacating of the Premises. If Tenant fails to restore the
Premises upon Landlord’s request, Landlord shall have the
right to perform such restoration and Tenant shall be liable for
all costs and expenses incurred by Landlord therefor.

11.     ASSIGNMENT
AND SUBLETTING.

     
(a) Landlord’s Prior Consent
Required. Neither Tenant nor Tenant’s
representatives, successors and assigns nor any subtenant or
assignee will assign, transfer, mortgage or otherwise encumber
this Lease or sublet or rent (or permit the occupancy or use of)
the Premises, or any part thereof, without obtaining the prior
written consent of Landlord, which consent will not be
unreasonably withheld or delayed as provided in
subsection (b) below, nor shall any assignment or transfer
of this Lease or the right of occupancy hereunder be effectuated
by operation of law or otherwise without the prior written
consent of Landlord. Any reasonable expenses incurred by
Landlord with respect to the review and consent or denial of
consent of the foregoing, not to exceed $2,500.00 per request,
shall be paid by Tenant to Landlord as additional rent, and
shall be due and payable with the monthly installment of rent
when billed.

     
(b) Qualification of Assignee or
Subtenant. Subject to the provisions of Section 11(c)
hereof, Landlord shall not unreasonably withhold or delay its
consent hereunder to any assignment or sublease by Tenant,
provided that (x) in the event of a sublease Tenant shall
satisfy each of the following conditions prior to any such
sublease becoming effective; and (y) in the event of an
assignment, Tenant shall satisfy the conditions of
subsections (i), (ii), (iv), (v) and (vi) prior to any such
assignment becoming effective:

		
	 	     
    (i) Tenant must first notify Landlord, in
    writing, of any proposed assignment or sublease, at least
    thirty (30) days prior to the effective date of such
    proposed assignment or sublease. The notice to Landlord must
    include a copy of the proposed assignment or sublease and a copy
    of the proposed assignee’s or subtenant’s financial
    statement for its most recent fiscal year, prepared in
    accordance with generally accepted accounting principles and
    certified by a public accountant or an executive officer of the
    proposed assignee or subtenant.
    
	 
	 	     
    (ii) The assignee or subtenant must have a
    credit rating satisfactory to Landlord (in Landlord’s
    reasonable judgment).
    
	 
	 	     
    (iii) The sublease must (A) be
    expressly subject and subordinate to this Lease,
    (B) require that any subtenant comply with and abide by all
    of the terms of the Lease, and (C) provide that any
    termination of this Lease shall extinguish the sublease as well.
    
	 
	 	     
    (iv) The assignee or subtenant may not
    propose to change the use of the premises to a purpose other
    than as stated in Section 9 hereof, may not be a place of
    public accommodation as defined under the Americans with
    Disabilities Act, nor conduct its business in 

    

- 11 -

 

		
	 	
    a manner which, in Landlord’s reasonable
    judgment, is not appropriate for comparable office buildings in
    the metropolitan Washington, D.C. areas.
    

		
	 	     
    (v) The assignee or subtenant may not be a
    tenant, subtenant, or other occupant of any part of the
    Building, unless Landlord is unable to offer such occupant
    comparable space elsewhere in the Building.
    
	 
	 	     
    (vi) The Tenant may not be in default under
    this Lease, or have committed two events of default hereunder
    during the previous twelve (12) months, whether cured or
    not.
    
	 
	 	     
    (vii) The sublease shall contain the
    following clause:
    

		
	 	     
    “Underlying Lease Agreement. This
    Sublease and Subtenant’s rights under this Sublease shall
    at all times be subject and subordinate to the underlying Lease
    identified in
    Paragraph       hereof, and
    Subtenant shall perform all obligations of Tenant under said
    Lease, with respect to the Sublease Premises. Subtenant
    acknowledges that any termination of the underlying Lease shall
    extinguish this Sublease. Landlord’s consent to this
    Sublease shall not make Landlord a party to this Sublease, shall
    not create any privity of contract between Landlord and
    Subtenant or other contractual liability or duty on the part of
    the Landlord to the Subtenant, shall not constitute its consent
    or waiver of consent to any subsequent sublease or sub-sublease,
    and shall not in any manner increase, decrease or otherwise
    affect the rights and obligations of Landlord and Tenant under
    the underlying Lease, in respect of the Sublease Premises.
    Subtenant shall have no right to assign this Sublease or further
    sublet the Premises without the prior written consent of
    Landlord. Any term of this Sublease that in any way conflicts
    with or alters the provisions of the underlying Lease shall be
    of no effect as to Landlord and Landlord shall not assume any
    obligations as landlord under the Sublease and Tenant shall not
    acquire any rights under the Sublease directly assertable
    against Landlord under the underlying Lease. In the event of a
    monetary default under the Lease, Tenant hereby collaterally
    assigns to Landlord this Sublease and any and all payments due
    to Tenant from Subtenant as additional security for
    Tenant’s performance of all of its covenants and
    obligations under the underlying Lease, and authorizes Landlord
    to collect the same directly from Subtenant and otherwise
    administer the provisions of this Sublease, at the option of
    Landlord. Subtenant hereby consents to such collateral
    assignment of this Sublease to Landlord and agrees to observe
    its obligations created hereby.”
    

     
(c) Landlord’s Right of First
Refusal. Landlord shall have the right, within thirty
(30) days after receipt of the notice from Tenant, required
under Section 11(b)(i) above, to elect: (i) if Tenant
proposes to assign the Lease or sublease all or substantially
all of the Premises, to terminate this Lease in its entirety, in
which event the Lease shall terminate upon the effective date of
the proposed assignment or sublease, and Tenant shall vacate the
Premises as of such effective date in accordance with the
applicable provisions of this Lease; (ii) if Tenant intends
to 

- 12 -

 

sublet a portion of the Premises, to terminate
this Lease only with respect to such portion of the Premises, in
which case Tenant shall vacate such portion as provided in
subsection (i) above; or (iii) to require Tenant to
pay Landlord within ten (10) days of receipt,
one-half (1/2) of the amount of rent payable under
such assignment or sublease in excess of the amount of rent
payable by Tenant hereunder with respect to the Premises or, in
the event of a sublease, that portion of the Premises sublet,
offset by any direct expenses incurred by Tenant actually
incurred in assigning the Lease or subleasing such portion of
the Premises (amortized in equal monthly payments over the
remaining term of the Lease, if assigned, or, if applicable,
over the initial term of such sublease). Upon exercise by
Landlord of either of the options set forth in
subsection (i) or (ii) above, Tenant shall surrender
the Premises or such portion of the Premises, as the case may
be, to Landlord, and thereafter the rent to be paid by Tenant
pursuant to Section 3 above shall be that portion of the
total rent which the amount of square foot area remaining in the
possession of Tenant bears to the total square foot area of the
Premises. In the event that Landlord does not exercise its right
to terminate this Lease, or any applicable portion thereof,
within said thirty (30) day period, Tenant shall have the
right, subject to the provisions of subsection (iii) above,
to assign the Lease or sublet the Premises or a portion thereof
after first obtaining the written consent of Landlord as
provided in Section 11(a) above. Upon exercise by Landlord
of the option set forth in subsection (iii) above, Tenant
covenants and agrees to provide Landlord with semi-annual
statements, prepared and verified by a certified public
accountant or executive officer of Tenant, stating the amount of
rent or other consideration received by Tenant from its assignee
or subtenant(s) during such semi-annual period. If such
statement shows Tenant failed to make the full payment to
Landlord required by subsection (iii) above, a late charge
equal to ten percent (10%) of the amount due shall be paid
by Tenant to Landlord as additional rent, and shall be due and
payable by the assignee or Tenant with the monthly installment
of rent next becoming due.

     
(d) No Waiver or Release. The consent
by Landlord to any assignment or subletting shall not be
construed as a waiver or release of Tenant from the terms of any
covenant or obligation under this Lease, nor shall the
collection or acceptance of rent from any such assignee,
subtenant or occupant constitute a waiver or release of Tenant
of any covenant or obligation contained in this Lease, nor shall
any such assignment or subletting be construed to relieve Tenant
from obtaining the consent in writing of Landlord to any further
assignment or subletting. Tenant hereby assigns to Landlord the
rent due from any subtenant of Tenant and hereby authorizes each
such subtenant to pay said rent directly to Landlord, at
Landlord’s option, in the event of any default by Tenant
under the terms of this Lease.

12.     INDEMNITY.

     
(a) Landlord shall not be liable for, and
Tenant shall indemnify and save harmless Landlord, ground
lessor, if any, and Landlord’s managing agent, if any, from
and against and from all fines, damages, suits, claims, demands,
losses and actions (including reasonable attorneys’ fees)
for any injury to person (including death) or damage to or loss
of property on or about the Premises caused by Tenant, its
employees, contractors, subtenants, invitees or by any other
person entering the Premises or the Building under the express
or implied invitation of Tenant, or arising out of Tenant’s
use of the Premises. Landlord shall not be liable or responsible

- 13 -

 

for any loss or damage to any property or death
or injury to any person occasioned by theft, fire, act of God,
public enemy, criminal conduct of third parties, injunction,
riot, strike, insurrection, war, court order, requisition or
other governmental body or authority, by other tenants of the
Building or any other matter beyond the reasonable control of
Landlord, or for any injury or damage or inconvenience which may
arise through repair or alteration of any part of the Building,
or failure to make repairs, or from any cause whatever except
Landlord’s negligence or willful misconduct.
Notwithstanding anything to the contrary contained in this
Lease, Landlord shall not be liable to Tenant or any other
person or entity for loss of any personal property, irrespective
of how or by whom caused.

     
(b) Tenant shall not be liable for, and
Landlord shall indemnify and save harmless Tenant from and
against all fines, damages, suits, claims, demands, losses and
actions (including reasonable attorneys’ fees) for any
injury to person (including death) or damage to or loss of
property on or about the common areas of the Building caused by
the negligence or willful misconduct of Landlord, its employees,
contractors, invitees or by any other person entering the common
areas of the Building under the express or implied invitation of
Landlord, or arising out of Landlord’s use of the common
areas. Tenant shall not be liable or responsible for any loss or
damage to any property or death or injury to any person
occasioned by theft, fire, act of God, public enemy, criminal
conduct of third parties, injunction, riot, strike,
insurrection, war, court order, requisition or other
governmental body or authority, by other tenants of the Building
or any other matter beyond the reasonable control of Tenant,
except the negligence or willful misconduct of Tenant, its
agent, employees, invitees and contractors.

13.     SUBORDINATION.

     
This Lease and all rights of Tenant hereunder
shall be and are subject and subordinate at all times to any
deeds of trust, mortgages, installment sale agreements and other
instruments or encumbrances, as well as to any ground leases or
primary leases, that now or hereafter cover all or any part of
the Building, the Land or an interest of Landlord therein, and
to any and all advances made on the security thereof, and to any
and all increases, renewals, modifications, consolidations,
replacements and extensions of any of such deeds of trust,
mortgages, installment sale agreements, instruments,
encumbrances or leases, as well as any substitutions therefor,
all automatically and without the necessity of any further
action on the part of Tenant to effectuate such subordination.
Tenant shall, however, upon demand at any time or times execute,
acknowledge and deliver to Landlord any and all instruments and
certificates that in the reasonable judgment of Landlord may be
necessary or proper to confirm or evidence such subordination.
Notwithstanding the foregoing, if any mortgagee, trust
beneficiary or ground lessor shall elect to have this Lease
treated as if it became effective and Tenant had taken
possession prior to the lien of its mortgage or deed of trust or
prior to its ground lease, and shall give notice thereof to
Tenant, this Lease shall be deemed to have become effective and
Tenant’s right to possession shall be considered prior to
such mortgage, deed of trust, or prior to its ground lease
whether this Lease is dated prior or subsequent to the date of
said mortgage, deed of trust or ground lease or the date of
recording thereof. In the event any mortgage or deed of trust to
which this Lease is subordinate is foreclosed or a deed in lieu
of foreclosure is given to the mortgagee or beneficiary, Tenant
shall attorn to the purchaser at the foreclosure sale or to the
grantee under 

- 14 -

 

the deed in lieu of foreclosure; in the event any
ground lease to which this Lease is subordinate is terminated,
Tenant shall attorn to the ground lessor. Tenant shall upon
demand at any time execute, acknowledge and deliver to
Landlord’s mortgagee (including the beneficiary under any
deed of trust) or other holder any and all instruments and
certificates that in the judgment of Landlord’s mortgagee
may be necessary or proper to confirm or evidence such
attornment. Notwithstanding anything to the contrary contained
in this Section or the Lease, no mortgagee of the Building or
Land shall be liable to Tenant: (i) for the return of or
responsibility for the Security Deposit, unless and until such
Security Deposit is actually received by said mortgagee: or
(ii) with respect to any matters occurring or existing
prior to completion of any foreclosure of said mortgagee’s
interest in the Building or Land.

14.     RULES AND
REGULATIONS.

     
Tenant and Tenant’s agents, contractors,
employees and invitees will comply fully with all requirements
of the Rules and Regulations of the Building and related
facilities, as specified in the Rules and Regulations now or
hereafter sent by Landlord to Tenant. Landlord shall at all
times have the right to change such rules and regulations to
promulgate other Rules and Regulations in such manner as
Landlord may deem advisable, in its reasonable discretion, for
safety, care or cleanliness of the Building and related
facilities or the Premises, and for preservation of good order
therein, all of which Rules and Regulations, changes and
amendments will be forwarded to Tenant in writing and shall be
carried out and observed by Tenant. Tenant shall be responsible
for compliance therewith by the agents, contractors, employees
and invitees of Tenant. Landlord shall use reasonable efforts to
enforce all such Rules and Regulations, including any exceptions
thereto, uniformly and in a manner which does not discriminate
against Tenant, although it is understood that Landlord may
grant exceptions to such Rules and Regulations in circumstances
in which it reasonably determines such exceptions are warranted.

15.     INSPECTION.

     
Landlord or its officers, agents and
representatives, and any ground lessor or mortgage thereof,
shall have the right to enter into and upon any and all parts of
the Premises at all reasonable hours upon reasonable advance
notice of at least 24 hours, where practicable (or, in any
emergency of for the purpose of performing routine maintenance,
at any hour and without advance notice), to (a) inspect the
Premises at any time, (b) clean or make repairs or
alterations or additions as Landlord may deem necessary (but
without any obligation to do so, except as expressly provided
for herein), or (c) show the Premises to prospective
tenants, purchasers or lenders; and Tenant shall not be entitled
to any abatement or reduction of rent by reason thereof, nor
shall such be deemed to be an actual or construction eviction.

16.     CONDEMNATION.

     
If the whole or, as determined by Landlord in its
sole discretion, any substantial part of the Land or the
Building should be taken 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 and the
taking would prevent or materially interfere with the use of the
Premises 

- 15 -

 

for the purpose for which they are being used, as
determined by Landlord, this Lease shall terminate and the rent
shall be abated during the unexpired portion of this Lease,
effective when the physical taking of said Land or the Building
shall occur. If part of the Land or Building shall be taken for
any public or quasi-public use under any governmental law,
ordinance or regulation, or by right of eminent domain, or by
private purchase in lieu thereof, and this Lease is not
terminated as provided in the sentence above, this Lease shall
not terminate but the rent payable hereunder during the
unexpired portion of this Lease shall be reduced to such extent
as Landlord shall determine may be fair and reasonable under all
of the circumstances. In the event of any such taking or private
purchase in lieu thereof, Landlord and Tenant shall each be
entitled to all remedies provided by law; provided, however,
that any award paid to Tenant shall not detract from any award
which Landlord is entitled to receive; and if Landlord’s
award is reduced to any extent as a result of any award to
Tenant, then Tenant shall assign and pay over to Landlord the
amount by which Landlord’s award was so reduced.

17.     FIRE OR
OTHER CASUALTY.

     
In the event of damage to or destruction of the
Premises or the Building, or the entrances and other common
facilities necessary to provide normal access to the Premises,
caused by fire or other casualty, Tenant shall provide immediate
notice thereof to Landlord, and Landlord shall make repairs and
restorations as hereafter expressly provided, unless this Lease
shall be determined by Landlord or unless any mortgagee which is
entitled to receive casualty insurance proceeds fails to make
available to Landlord a sufficient amount of such proceeds to
cover the cost of such repairs and restoration.

     
If (i) the damage is of such nature or extent, in
the judgment of Landlord’s architect, that more than one
hundred eighty (180) consecutive days, after commencement of the
work, would be required (with normal work crews and hours) to
repair and restore the part of the Premises or Building which
has been damaged, or (ii) a substantial portion of the Premises
or the Building is so damaged that, in Landlord’s sole
judgment, it is uneconomic to restore or repair the Premises or
the Building, as the case may be, Landlord shall so advise
Tenant promptly; and Landlord or Tenant, for a period of ten
(10) days thereafter, shall have the right to terminate this
Lease by written notice to the other, as of the date specified
in such notice, which termination date shall be no later than
thirty (30) days after the date of such notice. In the event of
such fire or other casualty, if this Lease is not terminated
pursuant to the terms of this Section 17, and if (i)
sufficient casualty insurance proceeds are available for use for
such restoration or repair, and (ii) this lease is then in full
force and effect, Landlord shall proceed promptly and diligently
to restore the Premises to its substantially similar condition
prior to the occurrence of the damage, provided that Landlord
shall not be obligated to repair or restore any alterations,
additions or fixtures which Tenant or any other tenant may have
installed unless Tenant, in a manner satisfactory to Landlord,
assures payment in full of all costs which may be incurred by
Landlord in connection therewith. Landlord shall not insure any
improvements or alterations to the Premises in excess of
Standard Tenant Work, or any fixtures, equipment or other
property of Tenant. Tenant shall, at its sole expense, insure
the value of its leasehold improvements, fixtures, equipment or
other property located in the Premises, for the purpose of
providing funds to Landlord to repair and restore the Premises
to its substantially similar condition prior to 

- 16 -

 

occurrence of the damage. If there be any such
alteration, fixtures or additions and Tenant does not assure or
agree to assure payment of the cost or restoration or repair as
aforesaid, Landlord shall have the right to determine the manner
in which the Premises shall be restored so as to be
substantially the same as the premises existed prior to the
damage occurring, as if such alterations, additions or fixtures
had not been made or installed. The validity and effect of this
Lease shall not be impaired in any way by, and Landlord shall
have no liability as a result of, the failure of Landlord to
complete repairs and restoration of the Premises or of the
Building within one hundred eighty (180) consecutive days after
commencement of work, even if Landlord had in good faith
notified Tenant that it estimated that the repair and
restoration would be completed within such period, provided that
Landlord proceeds diligently with such repair and restoration.

     
In the case of damage to the Premises not caused
by the negligence or willful misconduct of the Tenant or any of
its agents, employees or invitees, and which is of a nature or
extent that Tenant’s continued occupancy is substantially
impaired, the rent otherwise payable by Tenant hereunder shall
be equitably abated or adjusted for the duration of such
impairment as determined by Landlord. In no event, however,
shall any damaged be payable by landlord to Tenant in respect of
business interruption resulting from any fire or other casualty
on the Premises or Building. Tenant shall be responsible to
insure and/or repair all of Tenant’s leasehold improvements
and all equipment, fixtures and personal property located in the
Premises.

18.     HOLDING
OVER.

     
Tenant shall, at the termination of this Lease by
lapse of time or otherwise, yield up immediate possession to
Landlord. If Tenant holds over after the expiration or
termination of this Lease, all of the other terms and provisions
of this Lease shall be applicable during such period, except
that Tenant shall pay Landlord from time to time upon demand, as
partial damages for the period of any holdover, an amount equal
to one hundred fifty percent (150%) of the Basic Rental in
effect on the termination date for the first thirty (30) days
and two hundred percent (200%) thereafter, computed on a daily
basis for each day of the holdover period. No holding over by
Tenant shall operate to extend this Lease except as otherwise
expressly provided in this Lease. The foregoing notwithstanding,
Landlord, in addition to accepting the daily damages during the
period of such holding over, shall be entitled to pursue all
remedies at law or equity, including, without limitation, rights
to ejectment and damages.

19.     TAXES.

     
(a) Commencing on May 1, 2002, and
thereafter during each calendar year or portion thereof included
in the Lease Term, and any renewal thereof, Tenant shall pay to
Landlord as additional rent, Tenant’s Proportionate Share
of Real Estate Taxes which exceed the Base Real Estate Taxes.
The Base Real Estate Taxes shall be Real Estate Taxes paid by
Landlord in the 2001 calendar year. Real Estate Taxes shall mean
(i) all real estate taxes, including general and special
assessments, if any, which are imposed upon Landlord or assessed
against the Building and/or the Land during any calendar year,
and (ii) any other present or future taxes or governmental
charges that are imposed upon Landlord or assessed against the
Building 

- 17 -

 

and/or the Land during any calendar year which
are in the nature of, in addition to or in substitution for real
estate taxes, including, without limitation, any license fees,
tax measured by or imposed upon rents, or other tax or charge
upon Landlord’s business of leasing the Building, but shall
not include any federal, state or local income tax. Real Estate
Taxes shall also include all expenses incurred by Landlord in
obtaining or attempting to obtain a reduction of Real Estate
Taxes, including but not limited to, legal fees.

     
(b) Commencing with the 2002 calendar year,
and in each calendar year thereafter during the Lease Term,
Landlord may deliver to Tenant a statement of Landlord’s
estimate of any increase in the annual Real Estate Taxes for the
then current calendar year over the Base Real Estate Taxes and
Tenant’s percentage thereof, such statement to be delivered
or on or before April 1st of said calendar year, or as soon
thereafter as practicable. Within thirty (30) days after
delivery of such statement (including any statement delivered
after the expiration or termination of this Lease), and along
with its Basic Rental payments thereafter, Tenant shall pay to
Landlord, as additional rent, 1/12th of Tenant’s
Proportionate Share of such estimated increase in the annual
Real Estate Taxes, except that Tenant’s first payment shall
include the 1/12th monthly shares for the months from
January 1st through the month in which Landlord submitted
the estimate of the increase in the annual Real Estate Taxes for
the then current calendar year. Notwithstanding the foregoing,
Tenant shall not be responsible for such 1/12th monthly
shares until the first day of the thirteenth month following the
Commencement Date, unless the Commencement Date is the first day
of a month, in which event such 1/12th share shall be due
and payable on the anniversary of the Commencement Date.

     
(c) Commencing with the 2003 calendar year,
Landlord shall deliver to Tenant a statement showing the
determination of the increase in the annual Real Estate Taxes
for the preceding calendar year and Tenant’s Proportionate
Share thereof, such statement to be delivered on or before
April 1st of the then current calendar year, or as soon
thereafter as reasonably practicable. If such statement shows
that Tenant’s payments, if any, of the estimated increase
in the annual Real Estate Taxes for the preceding calendar year
exceeded Tenant’s actual increases for said year, then
Tenant may deduct such overpayment from its next payment or
payments of monthly Basic Rental. If such statement shows that
Tenant’s Proportionate Share of Landlord’s actual
increase in the annual Real Estate Taxes exceeded Tenant’s
payments, if any, of the estimated increase in the annual Real
Estate Taxes for said preceding calendar year, then Tenant shall
pay the total amount due to Landlord, which amount shall
constitute additional rent hereunder due and payable with the
first monthly installment of Basic Rental due after delivery of
said statement.

     
(d) In the event that the expiration date or
other date of termination of this Lease is not
December 31st, the increase to be paid by Tenant for the
calendar year in which the expiration date occurs shall be
determined by multiplying the amount of Tenant’s
Proportionate Share thereof for the full calendar year by a
fraction, with the number of days during such calendar year
prior to the expiration date as the numerator, and with 365 as
the denominator. The termination of this Lease shall not affect
the obligations of Landlord and Tenant pursuant to this Section
to be performed after such termination.

- 18 -

 

     
(e) Tenant shall be liable for all taxes
levied or assessed against personal property, furniture or
fixtures placed by Tenant in the Premises, and if any such taxes
for which Tenant is liable are in any way levied or assessed
against Landlord, Tenant shall pay the Landlord upon demand that
part of such taxes for which Tenant is primarily liable
hereunder.

20.     EVENTS OF
DEFAULT.

     
The occurrence of any of the following events
shall be deemed to be an event of default (“Event of
Default”) by Tenant under this Lease:

     
(a) Tenant shall fail to pay when due any
rental or other sums payable by Tenant hereunder, and same is
not cured within five (5) days after Landlord’s written
notice thereof to Tenant.

     
(b) Tenant shall fail to comply with or
observe Section 46 of this Lease (or a comparable section of any
other lease now or hereafter executed by Tenant in connection
with space in the Building).

     
(c) Tenant shall fail to comply with or
observe any other provision of this Lease (or any other lease
now or hereafter executed by Tenant in connection with space in
the Building), and same is not cured within fifteen (15) days
after Landlord’s written notice thereof to Tenant.

     
(d) Tenant abandons the Premises.

     
(e) Tenant or any partner or guarantor of
Tenant, as the case may be, shall apply for or consent to the
appointment of a receiver, trustee or liquidator of itself or
himself or any of its or his property, admit in writing its or
his inability to pay its or his debts as they mature, make a
general assignment for the benefit of creditors, be adjudicated
a bankrupt, insolvent or file a voluntary petition in bankruptcy
or a petition or an answer seeking reorganization or an
arrangement with creditors or to take advantage of any
bankruptcy, reorganization, insolvency, readjustment of debt,
dissolution or liquidation law or statute, or an answer
admitting the material allegations of a petition filed against
it or him in any proceeding under any such law, or if action
shall be taken by Tenant or any partner or guarantor of Tenant
for the purposes of effecting any of the foregoing.

     
(f) Any court of competent jurisdiction
shall enter an order, judgment or decree approving a petition
seeking reorganization of Tenant or all or a substantial part of
the assets of Tenant or any partner or guarantor of Tenant, or
appointing a receiver, sequestrator, trustee of liquidator of
Tenant or any partner or guarantor of Tenant or any of its or
his property, and such order, judgment or decree shall continue
unstayed and in effect for any period of at least thirty (30)
days.

- 19 -

 

21.     REMEDIES.

     
Upon the occurrence of any Event of Default
specified in this Lease, Landlord shall have the option to
pursue any one or more of the following remedies without any
notice or demand whatsoever:

     
(a) Distrain, collect or bring an action for
such rent as may be in arrears, and request entry of judgment
therefor as provided for in case of rent in arrears, or file a
proof of claim in any bankruptcy or insolvency proceeding for
such rent, or institute any other proceedings, whether similar
or dissimilar to the foregoing, to enforce payment thereof.

     
(b) Declare due and payable and sue for and
recover, all unpaid rent for the unexpired period of the Lease
Term (and also all additional rent as the amounts thereof can be
determined or reasonably estimated) as if by the terms of this
Lease the same were payable in advance, all of which shall be
reduced to present value at the time of the award at an interest
rate of eight percent (8%) per annum, together with all
legal fees and other expenses incurred by Landlord in connection
with the enforcement of any of Landlord’s rights and
remedies hereunder.

     
(c) Terminate this Lease, in which event
Tenant shall immediately surrender the Premises to Landlord; and
if Tenant fails to do so, Landlord may, without prejudice to any
other remedy which it may have for possession or arrearages in
rent, enter upon and take possession of the Premises by process
of law and expel or remove Tenant and any other person who may
be occupying the Premises or any part thereof, without being
liable for trespass or any claim for damages therefor, and
Tenant agrees to pay to Landlord on demand the amount of all
loss and damage which Landlord may suffer by reason of such
termination, whether through inability to relet the Premises on
satisfactory terms or otherwise, including the loss of rental
for the remainder of the Lease Term.

     
(d)     Without
termination of the Lease, enter upon and take possession of the
Premises and expel or remove Tenant and any other person who may
be occupying the Premises or any part thereof, without being
liable for trespass or any claim or damages therefor; and if
Landlord so elects, relet the Premises on behalf of the Tenant
on such terms as Landlord shall deem advisable and receive the
rent therefor, and Tenant agrees to pay Landlord on demand any
deficiency that may arise by reason of such reletting for the
remainder of the Lease Term.

     
(e)     Without
termination of the Lease, enter upon the Premises, by force if
necessary, without being liable for trespass or any claim for
damages therefor, and do whatever Tenant is obligated to do
under the terms of this Lease; and Tenant agrees to reimburse
Landlord on demand for any expenses which Landlord may incur in
thus effecting compliance with Tenant’s obligations under
this Lease, and Tenant further agrees that Landlord shall not be
liable for any damages resulting to the Tenant from such action.

     
(f)     If Tenant fails
to perform any covenant or observe any condition to be performed
or observed by Tenant hereunder other than the payment of rent
or acts in violation of 

- 20 -

 

any covenant or condition hereof, Landlord may,
but shall not be required to on behalf of Tenant, perform such
covenant and/or take such steps, including entering upon the
Premises, as may be necessary or appropriate, if Landlord shall
have given Tenant at least three (3) days prior written notice
of Landlord’s intention to do so, unless an emergency
situation exists, in which case Landlord shall have the right to
proceed immediately and all costs and expenses incurred by
Landlord in so doing, including reasonable legal fees, shall be
paid by Tenant to Landlord upon demand, plus interest at the
overdue interest rate set forth herein from the date of
expenditure(s) by Landlord, as additional rent. Landlord’s
proceeding under the rights reserved to Landlord under this
Section shall not in any way prejudice or waive any rights
Landlord might otherwise have against Tenant by reason of
Tenant’s default.

     
(g) Exercise any other rights and remedies
available to Landlord at law or in equity. No reentry or taking
possession of the Premises by Landlord shall be construed as an
election on its part to terminate this Lease, unless a written
notice of such intention be given to Tenant. Neither pursuit of
any of the foregoing remedies provided nor any other remedies
provided herein or by law shall constitute a forfeiture or
waiver of any rent due to Landlord hereunder or of any damages
accruing to Landlord by reason of the violation of any of the
terms, provisions and covenants herein contained.
Landlord’s acceptance of rent following an Event of Default
hereunder shall not be construed as Landlord’s waiver of
such Event of Default. No waiver by Landlord of any violation or
breach of any of the terms, provisions and covenants herein
contained shall be deemed or construed to constitute a waiver of
any other violation or Event of Default. The loss or damage that
Landlord may suffer by reason of termination of this Lease or
the deficiency from any reletting as provided for above shall
include the expense of repossession and any repairs or
remodeling undertaken by Landlord following possession. Should
Landlord at any time terminate this Lease for any default,
Tenant shall not be relieved of its liabilities and obligations
hereunder and, in addition to any other remedy Landlord may
have, Landlord may recover from Tenant all damages Landlord may
incur by reason of such default, including the cost of
recovering the Premises and the loss of rental for the remainder
of the Lease Term. Tenant’s obligations and liabilities
under this Lease shall also survive repossession and reletting
of the Premises by Landlord pursuant to the foregoing provisions
of this Section 21.

     
(h) The abatement of Basic Rental, if any,
and other concessions of the Landlord (which may include among
other items: (i) brokerage fees; (ii) moving
allowances; (iii) Tenant improvements; (iv) Lease
assumptions; (v) unamortized portions of the buildout; and
(vi) any other cash allowances or payments) are subject to
the condition that, throughout the Lease Term, Tenant will
perform and comply with all of the terms, covenants and
conditions of this Lease to be performed or complied with by
Tenant. If, after the occurrence of an Event of Default,
Landlord terminates this Lease or reenters and takes possession
of the Premises without such a termination, the abatement of
Basic Rental and other Landlord concessions shall cease to apply
and Tenant shall be obligated, within 10 days after demand,
to pay Landlord the Basic Rental abated and the value of all
Landlord’s concessions. Landlord’s right to recover
the Basic Rental abated and the value of all Landlord’s
concessions shall be in addition to any other remedies available
to Landlord as a result of such termination or reentry.

- 21 -

 

     
(i) All rights and remedies of Landlord and
Tenant herein enumerated shall be cumulative, and none shall
exclude any other right or remedy allowed by law.

     
(j) In addition to any other rights and
remedies provided in this Lease, and with or without terminating
this Lease, Landlord may with force of law, re-enter, terminate
Tenant’s right of possession and take possession of the
Premises, the provision of this Section 21 operating as a
notice to quit, any other notice to quit or of Landlord’s
intention to re-enter the Premises being hereby expressly waived.

     
(k) Notwithstanding anything to the contrary
contained in this Section, Landlord agrees to make reasonable
efforts to mitigate its damages, provided that (i) Landlord
shall have no obligation to lease the Premises before any other
space which may then be available or thereafter become available
in the Building; (ii) Tenant shall also have an obligation
to make reasonable efforts to reduce any damages caused by its
breach of this Lease or other Event of Default hereunder; and
(iii) it shall be Tenant’s burden to prove that
Landlord failed to comply with any standard imposed upon
Landlord in this subsection.

22.     SURRENDER
OF PREMISES.

     
No act done and no failure to act by Landlord or
its agents during the term hereby granted shall be deemed an
acceptance of a surrender of the Premises, and no agreement to
accept a surrender of the Premises shall be valid unless the
same be made in writing and signed by Landlord.

23.     ATTORNEYS’
FEES.

     
In case it should be necessary or proper for
Landlord to bring any action under this Lease or to consult or
place this Lease, or any amount payable by Tenant hereunder,
with an attorney concerning a default of Tenant hereunder,
irrespective of whether such default is later cured, then Tenant
shall pay any and all reasonable attorney’s fees, court
costs and expenses of Landlord incurred in connection with such
enforcement.

24.     INTENTIONALLY
OMITTED.

25.     MECHANICS’
LIENS.

     
Tenant shall not permit any mechanics’ lien
or other liens to be placed upon the Premises or the Building or
improvements thereon during the Lease Term, caused by or
resulting from any work performed, materials furnished or
obligation incurred by or at the request of Tenant. In the case
of the filing of any such lien Tenant will promptly, and in any
event within forty-five (45) days after the filing thereof,
satisfy or release such lien by means of payment thereof,
bonding Landlord against any loss occasioned thereby (in which
case Tenant shall have the right in due diligence to contest and
dispute such lien so long as such bond remains in place), or
take such other action as may be otherwise acceptable to
Landlord.

- 22 -

 

26.     WAIVER OF
SUBROGATION; INSURANCE.

     
(a) Landlord and Tenant hereby release the
other from any and all liability or responsibility to the other
or anyone claiming through or under them by way of subrogation
or otherwise for any loss or damage to property, but only to the
extent that such loss or damage is covered by the greater of any
insurance then in force or required to be carried hereunder,
even if such fire or other casualty shall have been caused by
the fault or negligence of the other party, or anyone for whom
such party may be responsible; provided, however, that such
release shall be applicable and in force and effect only with
respect to any loss or damage occurring during such time as the
policy or policies of insurance covering said loss shall contain
a clause or endorsement to the effect that this release shall
not adversely affect or impair said insurance or prejudice the
right of the insured to recover thereunder.

     
(b) Tenant shall maintain throughout the
Lease Term, at Tenant’s sole cost and expense, insurance
against loss or liability in connection with bodily injury,
death, property damage and destruction, in or upon the Premises
or the remainder of the Land, and arising out of the use of all
or any portion of the same by Tenant or its agents, employees,
officers, invitees, visitors and guests, under policies of
comprehensive general public liability insurance having such
limits as to each as may be reasonably required by Landlord from
time to time, but in any event of not less than One Million
Dollars ($1,000,000) per occurrence for death or injury and One
Million Dollars ($1,000,000) per occurrence for property damage
or destruction and personal injury. Such policies shall name
Landlord and Tenant, (and, at Landlord’s or such
mortgagee’s or paramount lessor’s or installment
seller’s request) any mortgagee of all or any portion of
the Buildings and any landlord of, or installment seller to,
Landlord as additional insured parties, shall provide that they
shall not be modified or cancelled without at least thirty (30)
days’ prior written notice to Landlord and any other party
designated as aforesaid and shall be issued by insurers of
recognized responsibility licensed to do business in the
jurisdiction in which the Building is located and acceptable to
Landlord. Copies of all such policies certified by the insurers
to be true and complete shall be supplied to Landlord and such
mortgagees, paramount lessors and installment sellers at all
times.

     
(c) Landlord shall maintain throughout the
Lease Term insurance coverage on the Building in such amounts as
that carried by owners of other comparable office buildings in
the same general area of the Building, including, without
limitation, comprehensive general liability insurance and
insurance on the Building and the structural improvements
therein.

27.     INTENTIONALLY
OMITTED.

28.     BROKERAGE.

     
          Landlord
and Tenant warrant that each has had no dealings with any broker
or agent other than Polinger Shannon & Luchs Company and
Transwestern Carey Winston in connection with the negotiation or
execution of this Lease, and each agrees to indemnify the other
against all costs, expenses, attorneys’ fees or other
liability for commissions or other compensation or charges
claimed by any other broker or agent claiming the same by,
through 

- 23 -

 

such party. Upon final consummation of this Lease
and Tenant’s occupancy, Landlord agrees to pay such brokers
pursuant to a separate agreement and will indemnify Tenant from
any claims made by said brokers for commissions earned due to
this Lease.

29.     ESTOPPEL
CERTIFICATES.

     
Tenant shall from time to time, within ten (10)
days after Landlord shall have requested the same of Tenant,
execute, acknowledge and deliver to Landlord a written
instrument in recordable form and otherwise in such form as
required by Landlord (i) certifying that this Lease is in
full force and effect (or, if not, why) and has not been
modified, supplemented or amended in any way (or, if there have
been modifications, supplements or amendments thereto, that it
is in full force as modified, supplemented or amended and
stating such modifications, supplements and amendments); and
(ii) stating any other fact or certifying any other
condition reasonably requested by Landlord or requested by any
mortgagee or prospective mortgagee or purchaser of the Property
or of any Interest therein. In the event that Tenant shall fail
to return a fully executed copy of such certificate to Landlord
within the foregoing ten (10) day period, then Tenant shall be
deemed to have approved and confirmed all of the terms,
certifications and representations contained in such
certificate, and Tenant irrevocably authorizes and appoints
Landlord as its attorney-in-fact to execute such certificate on
behalf of Tenant.

30.     NOTICES.

     
Each provision of this Lease or of any applicable
governmental laws, ordinances, regulations and other
requirements with reference to the sending, mailing or delivery
of any notice or the making of any payment by Landlord to Tenant
or with reference to the sending, mailing or delivery or the
making of any payment by Tenant to Landlord shall be deemed to
be complied with when and if the following steps are taken:

     
(a) All rent and other payments required to
be made by Tenant to Landlord hereunder shall be payable to
Landlord at the address for Landlord set forth below or at such
other address as Landlord may specify from time to time by
written notice delivered in accordance herewith. Tenant’s
obligation to pay rent and any other amounts to Landlord under
the terms of this Lease shall not be deemed satisfied until such
rent or other amounts have been actually received by Landlord.

     
(b) All payments required to be made by
Landlord to Tenant hereunder shall be payable to Tenant at the
address set forth below, or at such other address within the
continental United States as Tenant may specify from time to
time by written notice delivered in accordance herewith.

     
(c) With the exception of subsection (a)
above, any notice or document required or permitted to be
delivered hereunder shall be deemed to be delivered
(i) when delivered personally or (ii) whether actually
received or not, when deposited in the United States Mail,
postage prepaid, registered or certified mail, return receipt
requested, addressed to the parties hereto at the respective
addresses set out below, or at such other address as they have
previously 

- 24 -

 

specified by written notice delivered in
accordance herewith.

     If to Landlord, at:

         Polinger Shannon
& Luchs Company

     5530 Wisconsin Avenue, Suite 1000

     Chevy Chase, Maryland 20815

     And:

     Beverly L. Crump, Esq.

     11 South 12th Street

     Richmond, VA 23219

     If to Tenant, at:

     Paul Harbolick

     Alliance Home Funding, LLC

     12735 Shops Land

     Fairfax, VA 22033

If and when included within the term
“Landlord”, as used in this instrument, there are more
than one person, firm or corporation, all shall jointly arrange
among themselves for their joint execution of such notice
specifying some individual at the specific address for the
receipt of notices and payments to Landlord; if and when
included within the term Tenant, as used in this instrument,
there are more than one person, firm or corporation, all shall
jointly arrange among themselves for their joint execution of
such notice specifying some individual at some specific address
within the continental United States for the receipt of notices
and payment to Tenant. All parties included within the terms
“Landlord” and “Tenant”, respectively, shall
be bound by notices given in accordance with the provisions of
this paragraph to the same effect as if each had received such
notice.

31.     FORCE
MAJEURE.

     
Whenever a period of time is herein prescribed
for action to be taken by Landlord or Tenant or whenever
Landlord or Tenant is otherwise obligated to perform hereunder,
neither Landlord nor Tenant shall be liable or responsible for,
and there shall be excluded from the computation for any such
period of time, any delays or failures to perform due to
strikes, riots, acts of God, shortages of labor or materials,
war, governmental laws, regulations or restrictions or any other
causes of any kind whatsoever which are beyond the reasonable
control of that party; provided, however, that the failure to
pay any rent or additional rent hereunder, for any reason, shall
not be considered to be beyond the reasonable control of Tenant.

- 25 -

 

32.     SEVERABILITY.

     
If any clause or provision of this Lease is
illegal, invalid or unenforceable under present or future laws
effective during the Lease Term, then and in that event, the
remainder of this Lease shall not be affected thereby.

33.     AMENDMENTS;
WAIVER; BINDING EFFECT.

     
The provisions of this Lease may not be waived,
altered, changed or amended, except by instrument in writing
signed by both parties hereto, and such instrument may be
subject to the approval of any mortgagees, and ground lessors of
record. The acceptance of Basic Rental, additional rent or other
payments by Landlord, or the endorsement or statement on any
check, any letter accompanying any check or other tender of
Basic Rental, additional rent or other payment shall not be
deemed an accord and satisfaction or a waiver of any obligation
of Tenant, regardless of whether Landlord had knowledge of any
breach of such obligation. The terms and conditions contained in
this Lease shall apply to, inure to the benefit of, and be
binding upon the parties hereto, and upon their respective
successors in interest and legal representatives, except as
otherwise herein expressly provided.

34.     QUIET
ENJOYMENT.

     
Provided Tenant has performed all of the terms
and conditions of this Lease, including the payment of rent, to
be performed by Tenant, Tenant shall peaceably and quietly hold
and enjoy the Premises for the Lease Term, without hindrance
from Landlord or others claiming through Landlord, subject to
the terms and conditions of this Lease and to all mortgages,
ground leases and other encumbrances to which this Lease is
subject and subordinate.

35.     LIABILITY
OF TENANT.

     
If there is more than one Tenant, the obligations
hereunder imposed upon Tenant shall be joint and several. If
there is a guarantor of Tenant’s obligations hereunder, the
obligations hereunder imposed upon Tenant shall be the joint and
several obligations of Tenant and such guarantor, and Landlord
need not first proceed against Tenant before proceeding against
such guarantor nor shall any such guarantor be released from its
guaranty for any reason whatsoever, including without limitation
any extensions or renewals hereof, any amendments hereto, any
waivers hereof or failure to give such guarantor any notices
hereunder.

36.     LANDLORD
LIABILITY.

     
The liability of Landlord and all officers,
employees, shareholders, venturers or partners (general or
limited) of Landlord to Tenant for any default by Landlord under
the terms of this Lease shall be non-recourse and limited to the
interest of Landlord in the Building, and Landlord or any
officer, employee, shareholder, venturer or partner (general or
limited) of Landlord shall have the right to sell or transfer
all or any portion of the Land or the Building to 

- 26 -

 

any third party, and upon any such sale or other
transfer of all of the Building or the Land, and the
corresponding assignment of this Lease, the previous Landlord
shall have no further liability or obligation to Tenant
hereunder or otherwise.

37.     CERTAIN
RIGHTS RESERVED BY LANDLORD.

     
Landlord shall have the following rights,
exercisable without notice, except as provided herein, and
without liability to Tenant for damage or injury to property,
persons or business and without effecting an eviction,
constructive or actual, or disturbance of Tenant’s use or
possession or giving rise to any claim or setoff or abatement of
rent or affecting any of Tenant’s obligations hereunder:

     
(a) To change the name by which the Building
is designated upon four (4) months written notice to Tenant.

     
(b) To decorate and to make repairs,
alterations, additions, changes or improvements, whether
structural or otherwise, in and about the Building, or any part
thereof, and for such purposes to enter upon the Premises and,
during the continuance of any such work, to temporarily close
doors, entry ways, public space and corridors in the Building,
to interrupt or temporarily suspend Building services and
facilities and to change the arrangement and location of
entrances or passageways, doors and doorways, corridors,
elevators, stairs, toilets, or other public parts of the
Building, so long as the Premises are reasonably accessible;
provided, however, that Landlord shall use commercially
reasonable efforts to avoid disrupting Tenant’s use of the
Premises.

     
(c) To grant to anyone the exclusive right
to conduct any business or render any service in or to the
Building, provided such exclusive right shall not operate to
exclude Tenant from the use expressly permitted herein.

     
(d) To take all such reasonable measures as
Landlord may deem advisable for the security of the Building and
its occupants, including without limitation, the evacuation of
the Building for cause, suspected cause, or for drill purposes,
the temporary denial of access to the Building, and the closing
of the Building after normal business hours and on Saturdays,
Sundays and holidays; subject, however, to Tenant’s right
to admittance when the Building is closed after normal business
hours under such reasonable regulations as Landlord may
prescribe from time to time which may include, by way of example
but not of limitation, that person entering or leaving the
Building, whether or not during normal business hours, identify
themselves to a security officer by registration or otherwise
and that such persons establish their right to enter or leave
the Building.

38.     FINANCIAL
STATEMENTS.

     
Tenant agrees to provide to Landlord within 14
days of request by Landlord but no more than once per year, the
most recent annual financial statements of Tenant, including
balance sheets, income statements, and financial notes
(“Statements”). Tenant consents that 

- 27 -

 

Landlord may release the Statements to
Landlord’s subsidiaries, affiliates, lenders, advisors,
joint venture partners, or potential purchasers of the property
for the purposes of evaluating Tenant’s financial condition
with respect to performance under the Lease. Landlord agrees to
keep the Statements confidential and to not release the
Statements to third parties except as set forth herein.

39.     NOTICE TO
LENDER.

     
If the Premises or the Building or any part
thereof are at any time subject to a mortgage or a deed of trust
or other similar instrument and the Lease or the rentals are
assigned to such mortgagee, trustee or beneficiary and the
Tenant is given written notice thereof, including the post
office address of such assignee, then Tenant shall not terminate
this Lease or abate rentals for any default on the part of
Landlord without first giving written notice by certified or
registered mail, return receipt requested, to such mortgagee,
trustee, beneficiary and assignee, specifying the default in
reasonable detail, and affording such mortgagee, trustee,
beneficiary and assignee a reasonable opportunity to make
performance, at its election, for and on behalf of the Landlord.

40.     MISCELLANEOUS.

     
(a) Any approval by Landlord and
Landlord’s architects and/or engineers of any of
Tenant’s drawings, plans and specifications which are
prepared in connection with any construction of improvements in
the Premises shall not in any way be construed or operate to
bind Landlord or to constitute a representation or warranty of
Landlord as to the adequacy or sufficiency of such drawings,
plans and specifications, or the improvements to which they
relate, or any use, purpose, or condition, but such approval
shall merely be the consent of Landlord as may be required
hereunder in connection with Tenant’s construction of
improvements in the Premises in accordance with such drawings,
plans and specifications.

     
(b) Each and every covenant and agreement
contained in this Lease is, and shall be construed to be, a
separate and independent covenant and agreement.

     
(c) Neither Landlord nor Landlord’s
agents or brokers have made any representations or promises with
respect to the Premises, the Building or the Land except as
herein expressly set forth and no rights, easements or licenses
are acquired by Tenant by implication or otherwise except as
expressly set forth in the provisions of this Lease.

     
(d) Time is of the essence as to all
provisions of this Lease applicable to either party’s
obligations hereunder.

     
(e) The submission of this Lease to Tenant
shall not be construed as an offer, nor shall Tenant have any
rights with respect thereto unless and until Landlord shall, or
shall cause its managing agent to, execute a copy of this Lease
and deliver the same to Tenant.

- 28 -

 

     
(f) Notwithstanding anything to the contrary
contained in this Lease, if the Lease Term has not commenced
within twenty-one (21) years after the date of this Lease, this
Lease shall automatically terminate on the twenty-first (21st)
anniversary of such date. The sole purpose of this provision is
to avoid any interpretation of this Lease as a violation of the
Rule Against Perpetuities, or any other rule of law or equity
concerning restraints on alienation.

     
(g) The terms of this Lease shall be
construed in accordance with the laws of the jurisdiction in
which the Building is located.

41.     ADDITIONAL
RENT.

     
The Tenant shall pay as additional rent any money
required to be paid pursuant to the provisions of this Lease
whether or not the same be designated “additional
rent”. If such amounts or charges are not paid at the time
provided in this Lease, they shall nevertheless, if not paid
when due, be collectable as additional rent with the next
installment of rent thereafter falling due hereunder, but
nothing herein contained shall be deemed to suspend or delay the
payment of any amount of money or charge at the time the same
becomes due and payable hereunder, or limit any other remedy of
the Landlord.

42.     ENTIRE
AGREEMENT.

     
The Lease contains all covenants and agreements
between Landlord and Tenant relating in any manner to the rent,
use and occupancy of Premises and Tenant’s use of the
Building and other matters set forth in this Lease. No prior
agreement or understanding pertaining to the same shall be valid
or of any force or effect and the covenants and agreements of
this Lease shall not be altered, modified or added to except in
writing signed by Landlord and Tenant.

43.     LEGAL
PROCEEDINGS.

     
Landlord and Tenant hereby waive the right to a
jury trial in any action, proceeding or counterclaim between
Tenant and Landlord or their successors arising out of this
Lease or Tenant’s occupancy of the Premises or
Tenant’s right to occupy the same.

44.     LAWS AND
REGULATIONS.

     
Tenant agrees at Tenant’s expense to comply
with all applicable laws, ordinances, rules, and regulations,
whether now in effect or hereafter enacted or promulgated, of
any governmental entity or agency having jurisdiction of the
Premises.

45.     AMERICANS
WITH DISABILITIES ACT (“ADA”).

     
(a) Tenant hereby represents that it is not
a public accommodation, as defined in the ADA.

- 29 -

 

     
(b) The Landlord shall take whatever steps
are necessary to cause the common areas of the building to meet
the requirements of Title III of the ADA.

     
(c) The Tenant at its sole cost and expense
shall be solely responsible for taking any and all measures
which are required to comply with the requirements of
Title I and/or Title III of the ADA within the
Premises and, if the measures required outside of the Premises
are attributable to Tenant’s alterations to the Premises,
outside of the Premises as well. Any Alterations to the Premises
made by Tenant for the purpose of complying with the ADA or
which otherwise require compliance with the ADA shall be done in
accordance with this Lease; provided, however, that
Landlord’s consent to such Alterations shall not constitute
either Landlord’s assumption, in whole or in part, of
Tenant’s representation or confirmation by Landlord that
such Alterations comply with the provisions of the ADA.

     
(d) Tenant shall indemnify the Landlord for
all claims, damages, judgments, penalties, fines, administrative
proceedings, costs, expenses and liability arising from
Tenant’s failure to comply with any of the requirements of
Title I and/or Title III of the ADA within the
Premises.

     
(e) Landlord shall indemnify the Tenant for
all claims, damages, judgments, penalties, fines, administrative
proceedings, cost, expenses and liability arising from
Landlord’s failure to comply with Title III of the ADA
within the common areas.

     
(f) Notwithstanding the provisions of
subsection (b) herein, if (i) Landlord causes Alterations or
improvements to be made to the common areas of the Building to
comply with the ADA, and (ii) such Alterations or
improvements solely benefit the Premises, Tenant shall reimburse
Landlord for all costs and expenses incurred by Landlord in
connection with the performance of such Alterations or
improvements.

46.     ENVIRONMENTAL
PROTECTIONS.

     
(a) Notwithstanding the generality of
Section 9 above, Tenant shall conduct all activity in
compliance with all federal, state, and local laws, statutes,
ordinances, rules, regulations, orders and requirements of
common law concerning protection of the environment or human
health (“Environmental Laws”). Tenant shall also cause
its subtenants (if subtenants are permitted by this Lease or are
hereafter approved by Landlord), licensees, invitees, agents,
contractors, subcontractors and employees to comply with all
Environmental Laws. Tenant and its permitted subtenants,
licensees, invitees, agents, contractors, and subcontractors
shall obtain, maintain, and comply with all necessary
environmental permits, approvals, registrations and licenses.

     
(b) In addition to and not in limitation of
the foregoing, Tenant, its permitted subtenants, licensees,
invitees, agents, contractors, subcontractors and employees
shall not generate, refine, produce, transfer, process or
transport Hazardous Material on, above, beneath or near the
Premises, the Building or the Land. As used herein, the term
“Hazardous Materials” shall include, without
limitation, all of the following: (1) hazardous substances,
as such term is 

- 30 -

 

defined in the Comprehensive Environmental
Response, Compensation and Liability Act (“CERCLA”),
42 U.S.C. Section 9601 (14), as amended by the Superfund
Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499,
100 Stat. 1613 (Oct. 17, 1986)(“SARA”);
(2) regulated substances, within the meaning of
Title I of the Resource Conservation and Recovery Act, 42
U.S.C. Sections 6991-6991(i), as amended by SARA; (3) any
element, compound or material which can pose a threat to the
public health or the environment when released into the
environment; (4) hazardous waste as defined in the Virginia
Waste Management Act, Title 10.1, Chapter 14 of the Code of
Virginia; (5) petroleum and petroleum byproducts;
(6) an object or material which is contaminated with any of
the foregoing; (7) any other substance designated by any of
the Environmental Laws or a federal, state or local agency as
detrimental to public health, safety and the environment.

     
(c) Tenant shall protect, indemnify and save
Landlord harmless from and against any and all liability, loss,
damage, cost or expense (including reasonable attorneys’
fees) that Landlord may suffer or incur as a result of any
claims, demands, damages, losses, liabilities, costs, charges,
suits, orders, judgments or adjudications asserted, assessed,
filed, or entered against Landlord or any of the Building or the
Land, by any third party, including, without limitation, any
governmental authority, arising from Tenant’s breach of
Environmental Laws or otherwise arising from the alleged
generation, refining, production, storage, handling, use,
transfer, processing, transportation, release, spillage,
pumping, pouring, emission, emptying, dumping, discharge or
escape of Hazardous Materials on, from or affecting the
Premises, the Building or the Land, including, without
limitation, liability for costs and expenses of abatement,
correction, clean-up or other remedy, fines, damages, response
(including death) and property damage.

     
(d) Tenant, its permitted subtenants,
licensees, invitees, agents, contractors, subcontractors and
employees shall not release, spill, pump, pour, emit, empty,
dump or otherwise discharge or allow to escape Hazardous
Materials onto the Land or Building, and Tenant shall take all
action necessary to remedy the results of any such release,
spillage, pumping, pouring, emission, emptying, dumping,
discharge, or escape.

     
(e) Tenant shall within 48 hours of receipt
deliver to Landlord copies of any written communication relating
to the Building or the Land between Tenant and any governmental
agency or instrumentality concerning or relating to
Environmental Laws.

     
(f) Tenant’s obligations under this
Section shall survive the termination or other expiration of
this Lease.

47.     PARKING.

     
Tenant, its permitted subtenants, licensees,
invitees, agents, contractors, subcontractors and employees
shall not use parking spaces on the Land or Building in excess
of that number set out on the attached Data Sheet which has been
reasonably determined by Landlord to be Tenant’s
proportionate share of the total parking spaces available on the
Building and Land. At such time and under such circumstances as
Landlord deems appropriate, Landlord 

- 31 -

 

may provide attendant parking or such other
system or management of parking as it deems necessary or
desirable. Notwithstanding anything contained herein, if any
governmental regulation or ordinance is enacted or amended after
the effective date of this Lease so as to allow or require a
modification in Tenant’s number of parking spaces, Landlord
reserves the right to make such modification without modifying
in any way the rent due hereunder or any other obligations of
Tenant.

48.     OPTION TO
TERMINATE.

     
Tenant shall have the right to terminate this
Lease at the end of the thirty-sixth (36th) full month of the
lease term, provided: (a) Tenant is not in default under
the Lease either at the time notice is delivered or on the
proposed termination date; (b) Tenant delivers a written
notice to Landlord of its intention to terminate no later than
the first day of the thirty-first (31st) month of the Lease
Term, time being of the essence; and (b) Tenant delivers to
Landlord, with the notice provided in (b), a payment in the
amount of $20,435.59.

49.     OPTION TO
RENEW.

     
Tenant shall have the right to extend the term of
this Lease for one (1) additional five (5) year lease term (the
“Renewal Term”), upon the following conditions:

     
a. Tenant is not in default under this
Lease, either at the time any notice hereunder is given, or at
the time the Renewal Term is to commence;

     
b. Landlord has made a good faith
determination that Tenant remains creditworthy;

     
c. Tenant has not previously assigned the
Lease or sublet any part or all of the Premises;

     
d. Tenant has delivered to Landlord written
notice of its intention to exercise this option, not less than
180 days prior to the end of the Lease Term;

     
e. All lease terms for the Renewal Term
shall be the same as in the Lease, except that the Tenant shall
pay Basic Rental for the Renewal Term at the then-current fair
market rate for space comparable to the Premises (but in no
event less than the fully escalated Basic Rental at the end of
the initial Lease Term), and there shall be no further option to
renew the Lease Term; and

     
f. If Landlord and Tenant fail to agree as
to all terms and sign an Amendment to the Lease extending the
Lease Term as provided in this Section at least 150 days
prior to the end of the Lease Term, all time periods for Tenant
herein being of the essence, then Tenant’s option to extend
the term of this Lease shall lapse and Tenant’s renewal
option shall be of no force and effect. The renewal option is
personal to Tenant and is non-transferrable.

- 32 -

 

50.     EXHIBITS.

     
(i) Exhibit A — Outline
of Premises

     
(ii) Exhibit B — Tenant
Acceptance Letter

     
(iii) Exhibit C — Rules
and Regulations

     
IN WITNESS WHEREOF, the parties hereto have
executed this Lease and affixed their seals as of the date first
above written.

	 	 	 
	 	 	
    Tenant:
	 
	
    
    WITNESS/ATTEST:
    

    	 	
    ALLIANCE HOME FUNDING, LLC
	 
	
    /s/ THOMAS P. DONAHER

    	 	
    By: /s/ Paul M. Harbolick, Jr.
    [SEAL]

    
Name: Paul M. Harbolick, Jr.

    Title: Secretary

    

     Landlord:
    
	 
	
    WITNESS/ATTEST:
    	 	
    ARNELL CORPORATION,
    agent for Eaton Place Limited Partnership, et al.
    
	
    [SIG]

    	 	
    By: /s/ ELLIOT SCHNITZER [SEAL]

    
Name:  Elliot Schnitzer

    Title: President
    

- 33 -

 

 

 

EXHIBIT “B”

COMMENCEMENT DATE CERTIFICATE

     
This COMMENCEMENT DATE CERTIFICATE is attached to
and made a part of the Lease dated the
      day of
                    ,
2001, by and between ARNELL CORPORATION (hereinafter
called “Landlord”) and ALLIANCE HOME FUNDING,
LLC (as “Tenant”).

     
The occupancy date is

     
The lease commencement date is

     
The lease termination date is

     
The rent commencement date is

WITNESS:

		
	 	
    TENANT:
    
	 
	 	
    ALLIANCE HOME FUNDING, LLC

			
	 	By: 	

		
	
	
    

	 	
    Title:
    
	 	
    Date:
    

 

EXHIBIT C

RULES AND REGULATIONS

     
1.     Sidewalks,
doorways, vestibules, halls, stairways, and similar areas shall
not be obstructed nor shall refuse, furniture, boxes or other
items be placed therein by Tenant or its officers, agents,
contractors and employees, or used for any purpose other than
ingress and egress to and from the leased premises, or for going
from one part of the Building to another part of the Building.
Canvassing, soliciting and peddling in the Building or on the
Land are prohibited.

     
2.     Plumbing fixtures
and appliances shall be used only for the purposes for which
constructed, and no unsuitable material shall be placed therein.

     
3.     No signs,
directories, posters, advertisements, or notices shall be
painted or affixed on or to any of the windows or doors, or in
corridors or other parts of the Building, except, as shall be
first approved in writing by Landlord in its discretion. One
building standard plaque will be prepared by Landlord at
Landlord’s expense. No additional signs shall be posted
without Landlord’s prior written consent as to location and
form, and the cost of preparing and posting such signs shall be
borne solely by Tenant. Landlord shall have the right to remove
all unapproved signs without notice to Tenant, at the expense of
Tenant.

     
4.     Tenant shall not
do, or permit anything to be done in or about the Building, or
bring or keep anything therein, that will in any way increase
the rate of fire or other insurance on the Building, or on
property kept therein or otherwise increase the possibility of
fire or other casualty.

     
5.     Landlord shall
have the power to prescribe the weight and position of heavy
equipment or objects which may overstress any portion of the
floor. All damage done to the Building by the improper placing
of such heavy items will be repaid at the sole expense of the
responsible Tenant.

     
6.     A Tenant shall
notify the Building manager when safes or other heavy equipment
are to be taken in or out of the Building, and the moving shall
be done after written permission is obtained from Landlord on
such conditions as Landlord shall require. Any moving in or out
of Tenant’s equipment, furniture, files, and/or fixtures
shall be done only with prior written notice to Landlord, and
Landlord shall be entitled to prescribe the hours of such
activity, the elevators which shall be available for such
activity and shall, in addition, be entitled to place such other
conditions upon Tenant’s moving activities as Landlord
deems appropriate. Tenant shall bear all risk of loss relating
to damage incurred with respect to Tenant’s property in the
process of such a move, and in addition, shall indemnify and
hold Landlord harmless as to all losses, damages, 

 

EXHIBIT C

claims, causes of action, costs and/or expenses
relating to personal injury or property damage sustained by
Landlord or any third party on account of Tenant’s moving
activities.

     
7.     Corridor doors,
when not in use, shall be kept closed.

     
8.     All deliveries
must be made via the service entrance and elevators, designated
by Landlord for service, if any, during Landlord’s normal
operating hours. Landlord’s written approval must be
obtained for any delivery after normal working hours.

     
9.     Each Tenant shall
cooperate with Landlord’s employees in keeping the leased
Premises neat and clean.

     
10.     Tenant shall not
cause or permit any improper noises in the Building, or allow
any unpleasant odors to emanate from the leases Premises, or
otherwise interfere, injure or annoy in any way other tenants,
or persons having business with them.

     
11.     No animals shall
be brought into or kept in or about the Building.

     
12.     No boxes, crates
or other such materials shall be stored in hallways or other
common areas. When Tenant must dispose of crates, boxes, etc.,
it will be the responsibility of Tenant to dispose of same prior
to, or after the hours of 7:30 a.m. and 6:30 p.m.,
respectively, so as to avoid having such debris visible in the
common areas during normal business hours.

     
13.     No machinery of
any kind, other than ordinary office machines such as copiers,
typewriters and PC’s shall be operated on the leased
Premises without the prior written consent of Landlord, nor
shall Tenant use or keep in the Building any inflammable or
explosive fluid or substance (including Christmas trees or
ornaments), or any illuminating materials, except candles. No
space heaters or fans shall be operated in the Building.

     
14.     No bicycles,
motorcycles or similar vehicles will be allowed in the Building.

     
15.     Any wall damage
deemed by Building management to be excessive from nails,
screws, books, etc. shall be repaired by Tenant when requested
by Landlord. Nothing shall be affixed to, or made to hang from
the ceiling of the Premises without Landlord’s prior
written consent.

     
16.     Landlord has the
right to evacuate the Building in the event of fire alarms,
emergency or catastrophe.

 

EXHIBIT C

     
17.     No food and/or
beverages shall be distributed from Tenant’s office without
the prior written approval of the management of the Building.

     
18.     No additional
locks shall be placed upon any doors without the prior written
consent of Landlord. All necessary keys shall be furnished by
Landlord, and the same shall be surrendered upon termination of
this Lease, and Tenant shall then give Landlord or his agent an
explanation of the combination of any locks on the doors or
vaults. Tenant shall initially be given two (2) keys to the
Premises by Landlord. No duplicates of such keys shall be made
by Tenant. Additional keys shall be obtained only from Landlord,
at a fee to be determined by Landlord.

     
19.     Tenant will not
locate furnishings or cabinets adjacent to mechanical or
electrical access panels so as to prevent operating personnel
from servicing such units as routine or emergency access may
require. Cost of moving such furnishings for Landlord’s
access will be for Tenant’s account. The lighting and air
conditioning equipment of the Building will remain the exclusive
charge of the Building designated personnel.

     
20.     Tenant shall
comply with parking rules and regulations as may be posted and
distributed from time to time.

     
21.     No portion of
the Building shall be used for the purposes of lodging rooms.

     
22.     Vending machines
or dispensing machines of any kind will not be placed in the
leased Premises by Tenant without prior written consent of
Landlord.

     
23.     Prior written
approval, which shall be at Landlord’s sole discretion,
must be obtained for installation of window shades, blinds,
drapes, or any other window treatment of any kind whatsoever,
other than building standard mini blinds. Tenant shall not
affix anything to the inside of the exterior windows of the
Building, nor damage or remove any window film or reflective
material affixed to such windows. Landlord will control all
internal lighting that may be visible from the exterior of the
Building and shall have the right to change any unapproved
lighting, without notice to Tenant, at Tenant’s expense.

     
24.     No Tenant shall
make any changes or alterations to any portion of the Building
without Landlord’s prior written approval, which may be
given on such conditions as Landlord may elect. All such work
shall be done by Landlord or by contractors and/or workmen
approved by Landlord, working under Landlord’s supervision.

 

EXHIBIT C

     
25.     Tenant shall
cooperate fully with all recycling programs of Landlord and with
any and all regulations, laws, etc. imposed on the Building by
any governmental body or Landlord’s insurance carriers.

     
26.     Landlord
reserves the right to rescind any of these rules and make such
other and further rules and regulations as in its judgment shall
from time to time be needful for the operation of the Building,
which rules shall be binding upon each Tenant upon delivery to
such Tenant of notice thereof in writing.exv10w5

 

EXHIBIT 10.5

DEED OF LEASE

by and between

PLAZA AMERICA OFFICE DEVELOPMENT II,
LLC

(“Landlord”)

and

ALLIANCE BANK CORPORATION

a Virginia banking corporation

(“Tenant”)

at

Plaza America Building IV

Reston, Virginia

 

TABLE OF CONTENTS

	 	 	 	 	 
	
    
     1.
    

    	 	
    TERMS
    	 	
    1
    
	
    
     2.
    

    	 	
    PAYMENT OF BASE RENT & ADDITIONAL RENT
    	 	
    4
    
	
    
     3.
    

    	 	
    SECURITY DEPOSIT
    	 	
    4
    
	
    
     4.
    

    	 	
    USES; TENANT COVENANTS
    	 	
    5
    
	
    
     5.
    

    	 	
    ENVIRONMENTAL PROVISIONS; RECYCLING
    	 	
    6
    
	
    
     6.
    

    	 	
    LATE CHARGES; INTEREST
    	 	
    9
    
	
    
     7.
    

    	 	
    REPAIRS AND MAINTENANCE
    	 	
    10
    
	
    
     8.
    

    	 	
    UTILITIES AND SERVICES
    	 	
    11
    
	
    
     9.
    

    	 	
    OPERATING COSTS
    	 	
    12
    
	
    
    10.
    

    	 	
    REAL ESTATE TAXES
    	 	
    15
    
	
    
    11.
    

    	 	
    ADDITIONAL PROVISIONS; OPERATING COSTS AND REAL
    ESTATE TAXES
    	 	
    16
    
	
    
    12.
    

    	 	
    TENANT’S INSURANCE
    	 	
    17
    
	
    
    13.
    

    	 	
    LANDLORD’S INSURANCE
    	 	
    18
    
	
    
    14.
    

    	 	
    DAMAGE OR DESTRUCTION
    	 	
    19
    
	
    
    15.
    

    	 	
    MACHINERY AND EQUIPMENT; ALTERATIONS AND
    ADDITIONS; REMOVAL OF FIXTURES
    	 	
    21
    
	
    
    16.
    

    	 	
    ACCEPTANCE OF PREMISES
    	 	
    22
    
	
    
    17.
    

    	 	
    TENANT IMPROVEMENTS
    	 	
    22
    
	
    
    18.
    

    	 	
    ACCESS
    	 	
    22
    
	
    
    19.
    

    	 	
    MUTUAL WAIVER OF SUBROGATION
    	 	
    23
    
	
    
    20.
    

    	 	
    INDEMNIFICATION
    	 	
    23
    
	
    
    21.
    

    	 	
    ASSIGNMENT AND SUBLETTING
    	 	
    24
    
	
    
    22.
    

    	 	
    ADVERTISING
    	 	
    26
    
	
    
    23.
    

    	 	
    LIENS
    	 	
    26
    

1

 

	 	 	 	 	 
	
    
    24.
    

    	 	
    DEFAULT
    	 	
    26
    
	
    
    25.
    

    	 	
    SUBORDINATION
    	 	
    29
    
	
    
    26.
    

    	 	
    SURRENDER OF POSSESSION
    	 	
    30
    
	
    
    27.
    

    	 	
    NON-WAIVER
    	 	
    31
    
	
    
    28.
    

    	 	
    HOLDOVER
    	 	
    31
    
	
    
    29.
    

    	 	
    CONDEMNATION
    	 	
    31
    
	
    
    30.
    

    	 	
    NOTICES
    	 	
    32
    
	
    
    31.
    

    	 	
    MORTGAGEE PROTECTION
    	 	
    32
    
	
    
    32.
    

    	 	
    COSTS AND ATTORNEY’S FEES
    	 	
    33
    
	
    
    33.
    

    	 	
    BROKERS
    	 	
    33
    
	
    
    34.
    

    	 	
    LANDLORD’S LIABILITY
    	 	
    33
    
	
    
    35.
    

    	 	
    ESTOPPEL CERTIFICATES
    	 	
    33
    
	
    
    36.
    

    	 	
    EXCLUSIVITY
    	 	
    34
    
	
    
    37.
    

    	 	
    TRANSFER OF LANDLORD’S INTEREST
    	 	
    35
    
	
    
    38.
    

    	 	
    RIGHT TO PERFORM
    	 	
    35
    
	
    
    39.
    

    	 	
    COMMON AREAS
    	 	
    35
    
	
    
    40.
    

    	 	
    SALES AND AUCTIONS; SIGNAGE
    	 	
    35
    
	
    
    41.
    

    	 	
    ACCESS TO ROOF
    	 	
    36
    
	
    
    42.
    

    	 	
    ACCESS; SECURITY
    	 	
    37
    
	
    
    43.
    

    	 	
    AUTHORITY OF LANDLORD AND TENANT
    	 	
    37
    
	
    
    44.
    

    	 	
    NO ACCORD OR SATISFACTION
    	 	
    37
    
	
    
    45.
    

    	 	
    LEGAL REQUIREMENTS
    	 	
    38
    
	
    
    46.
    

    	 	
    PARKING
    	 	
    38
    
	
    
    47.
    

    	 	
    GENERAL PROVISIONS
    	 	
    38
    
	
    
    48.
    

    	 	
    RULES AND REGULATIONS
    	 	
    40
    
	
    
    49.
    

    	 	
    ARBITRATION
    	 	
    40
    
	
    
    50.
    

    	 	
    WAIVER OF JURY TRIAL
    	 	
    41
    

2

 

	 	 	 	 	 
	
    
    51.
    

    	 	
    RENEWAL TERM
    	 	
    41
    
	
    
    52.
    

    	 	
    LEASE CONTINGENCY
    	 	
    43
    

	 	 	 
	
    
    EXHIBIT A
    

    	 	
    Location and Dimensions of Premises
    
	
    
    EXHIBIT B
    

    	 	
    Description of Land
    
	
    
    EXHIBIT B-1
    

    	 	
    Description of Project
    
	
    
    EXHIBIT C
    

    	 	
    Construction Provisions
    
	
    
    EXHIBIT D
    

    	 	
    Rules and Regulations
    
	
    
    EXHIBIT E
    

    	 	
    Declaration of Lease Commencement
    
	
    
    EXHIBIT F
    

    	 	
    Form of Estoppel Certificate
    
	
    
    SCHEDULE 1
    

    	 	
    Existing Leases Re: Exclusivity Exceptions
    

3

 

DEED OF LEASE

     
THIS DEED OF LEASE (“Lease”) is made as
of the         day of
January, 2002, by and between PLAZA AMERICA OFFICE
DEVELOPMENT II, LLC, a Delaware limited liability
company (“Landlord”), and ALLIANCE BANK
CORPORATION, a Virginia banking corporation
(“Tenant”).

RECITALS:

     
Landlord, for and in consideration of the rents
and all other charges and payments hereunder and of the
covenants, agreements, terms, provisions and conditions to be
kept and performed hereunder by Tenant, grants and conveys to
Tenant, and Tenant hereby hires and takes from Landlord, a
leasehold interest in the premises described below
(“Premises”), subject to all matters hereinafter set
forth and upon and subject to the covenants, agreements, terms,
provisions and conditions of the Lease for the term hereinafter
stated.

     
NOW THEREFORE Landlord and Tenant hereby agree to
the following:

1.     TERMS.

     
1.1 Premises. The premises demised by
this Lease will consist of approximately three thousand seven
hundred fifty eight (3,758) rentable square feet of space (the
“Premises”) to be measured and certified in accordance
with the BOMA modified standard of measurement, located on the
first (1st) floor of that building located at 11730 Plaza
America Drive, Reston, Fairfax County, Virginia (the
“Building”), together with three and one-half parking
permits for each one thousand (1,000) square feet of the
Premises at no charge to Tenant throughout the initial Lease
Term and any Renewal Terms (exclusive of any below grade portion
of the Premises, if any), located or to be located in the
adjacent parking structure, and the non-exclusive use of various
Common Areas (as defined in Section 39 hereof), as more
particularly set forth herein. The land upon which the Building
is situated, which is generally depicted on the diagram attached
hereto as Exhibit B (the “Site Plan”) and
incorporated herein by reference, shall be referred to
hereinafter as the “Land”. The Land and the Building
are collectively referred to herein as the “Project”.
The location and dimensions of the Premises are shown on the
conceptual floor plans attached hereto as Exhibit A
and incorporated herein by reference. No easement for light or
air is incorporated in or intended to be conveyed with the
Premises.

     
1.2 Tenant’s Share.
“Tenant’s Share” shall mean a fraction, the
numerator of which is the total rentable square footage of the
Premises as determined in accordance with Section 1.1
hereof, and the denominator of which is the total rentable
square footage of the Building. No adjustment shall be made for
space within the Project occupied by any building engineers or
similar on-site property management or operational personnel,
provided any such space will be located within a core area
location to be determined within the reasonable judgment of
Landlord.

     
1.3 Lease Term. The term of this
Lease (the “Term” or “Lease Term”) shall
commence on the “Rent Commencement Date” as defined in
Section 1.4 below (and as more fully set forth in
Exhibit C hereto), and shall expire one hundred
twenty (120) months after the Rent Commencement Date (the
“Lease Expiration Date”); provided that if the Rent
Commencement Date is a date other than the first day of a
calendar month, the Lease Term 

 

shall run for the number of months set forth
above from the first day of the calendar month following the
Rent Commencement Date. Between the Commencement Date and the
Rent Commencement Date, Tenant shall be entitled to occupy the
Premises for the performance of Tenant’s Work (as defined
in Exhibit C attached hereto) provided that such occupancy
shall be subject to all of the terms and conditions of this
Lease, exclusive of the payment of Base Rent and Additional Rent.

     
1.4 Commencement and Rent Commencement
Date.

		
	 	     
    1.4.1 The “Commencement Date”,
    currently anticipated to be on or about April 1, 2002,
    shall be the date upon which Landlord’s Work is
    “substantially completed”, as such term is defined
    below, except to the extent modified by operation of the
    remedial provisions of Exhibit C attached hereto and
    made a part hereof by this reference. Notwithstanding the
    foregoing, for purposes of this Lease, the term
    “Commencement Date” shall also mean any adjusted
    Commencement Date which may be established pursuant to the
    provisions of this Lease. Landlord and Tenant hereby agree to
    execute a Declaration, in the form attached hereto as
    Exhibit E, to confirm the Commencement Date.
    Tenant’s failure to execute said Declaration shall not
    affect the Commencement Date, or the Lease Expiration Date, as
    the same may be determined by the terms of this Lease. For
    purposes hereof, the term “Substantial Completion”
    shall mean that (1) Landlord’s Work (as defined in
    Exhibit C) has been completed in accordance with the
    Approved Plans (as defined in Exhibit C), other than
    (A) special, non-standard items requested by Tenant that
    require an unacceptably long lead time for procurement and/or
    installation, and (B) “punch list” items and
    other minor defects which will not unreasonably interfere with
    Tenant’s ability to lawfully take occupancy of the Premises
    or to conduct its business therein; and (2) Landlord has
    obtained all governmental inspection and other approvals capable
    of being obtained by Landlord in connection with such
    construction prior to the performance of Tenant’s Work and
    the installation of Tenant’s installation of its trade
    fixtures, furniture and equipment (including without limitation
    a permanent or temporary non-residential use permit or its
    equivalent permitting Tenant to lawfully occupy the Premises,
    unless the same cannot be obtained by Landlord because of any
    incomplete Tenant Work, or because the same cannot be obtained
    prior to Tenant’s installation of its trade fixtures,
    furniture and equipment or because such installation is in
    violation of any applicable legal or code requirements, in which
    event the non-issuance of such permanent or temporary
    non-residential use permit or its equivalent shall not affect
    the status of the Premises as “substantially
    completed”).
    
	 
	 	     
    1.4.2 The “Rent Commencement Date”
    shall be that date which is earlier of (i) one hundred
    fifty (150) days after the Commencement Date, or
    (ii) the date on which Tenant opens its branch banking
    facility from all or any part of the Premises.
    

     
1.5 Base Rent. The base rent payable
by Tenant hereunder (“Base Rent”) is set forth in this
Section 1.5.1, below. The Base Rent is in addition to (and
not to be reduced by) any payment of Additional Rent (as
hereinafter defined) hereunder. Base Rent shall be payable
monthly, in equal monthly installments, in advance, on the first
day of each calendar month of the Term, without prior notice,
demand, deduction or offset.

		
	 	     
    1.5.1 Subject to the provisions of
    Section 1.5.2 below, the annual Base Rent for the Premises
    (monthly installments of which may be referred to herein as
    “Monthly Base Rent”) for the initial Lease Year of the
    Term shall be Twenty Nine Dollars ($29.00) per square foot of
    the Premises. Thereafter, as of the first twelve (12) month
    anniversary of the Commencement Date and each annual anniversary
    thereafter, the Base Rent shall be 

    

2

 

		
	 	
    increased to an amount equal to one hundred three
    percent (103%) of the Base Rent for the immediately preceding
    Lease Year.
    

		
	 	     
    1.5.2 In the event Tenant exercises its
    Renewal Option in accordance with Section 51 of this Lease,
    Base Rent and escalations for any Renewal Term(s) under this
    Lease shall be as set forth in Section 51 below.
    

     
1.6 Additional Rent. Tenant’s
Share (as hereinafter defined) of Real Estate Taxes (as defined
in Section 10), Operating Costs (as defined in
Section 9) and any other sum owed or reimbursable by Tenant
to Landlord under this Lease (excluding Base Rent) shall be
considered additional rent hereunder (collectively
“Additional Rent”), and, except for items of
Additional Rent for which demand is required pursuant to the
express terms of this Lease, shall be payable without demand,
set-off or deduction. Estimates of those items of Additional
Rent described in Section 9 and Section 10 of this
Lease shall be payable monthly, in advance, on the first day of
each calendar month of the Term, together with Tenant’s
monthly payment of Base Rent, without demand, set-off or
deduction.

     
1.7 Notice and Payment Addresses. Any
notices under this Lease shall be governed by the terms of
Section 30, below. The notice addresses of the parties are
as follows:

	 	 	 	 	 
	
    If to Landlord:
    	 	 
	 	 	
    c/o Intertech Corporation

    8150 Leesburg Pike

    Suite 1105

    Vienna, Virginia 22182

    Attention: Vicki Salamon
    	 	 
	
    
    With courtesy copies to:
    

    	 	
    c/o Intertech Corporation

    1500 Broadway, Suite 2003

    New York, NY 10036

    Attention: Poju Zabludowicz

    

    Atlantic Realty Companies

    8150 Leesburg Pike

    Suite 1100

    Vienna, Virginia 22182

    Attention: Mr. David Ross

    

    J. Richard Saas, Esq.

    Tenenbaum & Saas, P.C.

    4330 East West Highway

    Suite 1150

    Bethesda, Maryland 20814
    	 	 
	
    
    If to Tenant:
    

    	 	
    Alliance Bank Corporation

    12735 Shops Lane

    Fairfax, Virginia 22033

    Attention: Paul M. Harbolick, V.P.
    	 	 

3

 

	 	 	 
	
    
    With courtesy copies to:
    

    	 	
    V. Rick Nishanian, Esquire

    Vanderpool, Frostick & Nishanian, P.C.

    9324 West Street

    Suite 400

    Manassas, Virginia 20110
    

Either party may, by ten (10) days’ prior
written notice to the other, designate a new address to which
all notices hereunder shall be directed.

     
1.8 Rent Payment Address. Tenant
shall send payments of Base Rent and Additional Rent hereunder
to Landlord at the following address, or to such other address
of which Landlord may advise Tenant in writing:

	 	 	 
	 	 	
    c/o ARC Management, LLC

    8150 Leesburg Pike

    Suite 1100

    Vienna, Virginia 22182
    

     
1.9 Lease Year. Each twelve (12)
month period within the Lease Term shall be referred to herein
as a “Lease Year.” The first Lease Year shall commence
on the Rent Commencement Date and terminate on the last day of
the twelfth full calendar month after the Rent Commencement
Date. Each subsequent Lease Year shall commence on the date
immediately following the last day of the preceding Lease Year
and shall continue for a period of twelve (12) full calendar
months, except that the last Lease Year of the Lease Term shall
terminate on the date this Lease expires or is otherwise
terminated.

     
1.10 Deed of Lease. To the extent
required under applicable law to make this Lease legally
effective, this Lease shall constitute a deed of lease.

2.     PAYMENT OF
BASE RENT & ADDITIONAL RENT.

     
Commencing as of the Rent Commencement Date,
Tenant shall pay Landlord the Base Rent and Additional Rent due
under this Lease without prior notice, demand, deduction or
offset, in lawful money of the United States. Base Rent and
Additional Rent shall be paid at the address noted in
Section 1.8, or to such other party or at such other place
as Landlord may hereafter from time to time designate in
writing. Base Rent and Additional Rent under this Lease for any
partial month at the beginning or end of the Lease Term shall be
prorated. Except for monthly installments of estimated
Additional Rent as set forth in Sections 9 and 10 of this
Lease, or as otherwise provided in this Lease, all payments of
Additional Rent shall be paid no later than thirty (30) days
after the date Landlord notifies Tenant in writing of the amount
thereof. In the event of any dispute concerning the computation
of the amount of any Additional Rent due, Tenant shall pay the
amount specified by Landlord pending the resolution of the
dispute, and, subject to Section 9.4 hereof, such payment
shall be without prejudice to Tenant’s right to continue to
challenge the disputed computation.

3.     SECURITY
DEPOSIT.

     
3.1 Security Deposit. Simultaneously
with the execution of this Lease by Tenant, Tenant shall provide
Landlord with a security deposit in an amount equal to $9,081.83
or an amount to be adjusted per the final measurement of the
Premises subject to Section 1.1 (the 

4

 

“Security Deposit”). The Security
Deposit shall constitute security for payment of Base Rent and
Additional Rent and for any and all other obligations of Tenant
under this Lease. If Tenant defaults, beyond any applicable cure
period, with respect to any covenant or condition of this Lease,
including but not limited to the payment of Base Rent,
Additional Rent or any other payment due under this Lease, and
the obligation of Tenant to maintain the Premises and deliver
possession thereof back to Landlord at the expiration or earlier
termination of the Lease Term in the condition required herein,
then Landlord may (without any waiver of Tenant’s default
being deemed to have occurred) apply all or any part of the
Security Deposit to the payment of any sum in default beyond any
applicable cure period, or any other sum which Landlord may be
required or deem necessary to spend or incur by reason of
Tenant’s default, or to satisfy in part or in whole any
damages suffered by Landlord as a result of Tenant’s
default which continues to exist beyond any applicable cure
period. In the event of such application, Tenant shall promptly
deposit with Landlord the amount necessary to restore the
Security Deposit to the full amount set forth above. The parties
expressly acknowledge and agree that the Security Deposit is not
an advance payment of Base Rent or Additional Rent, nor a
measure of Landlord’s damages in the event of any default
by Tenant. If Tenant shall have fully complied with all of the
covenants and conditions of this Lease, but not otherwise, the
amount of the Security Deposit then held by Landlord shall be
repaid to Tenant within thirty (30) days after the expiration or
sooner termination of this Lease. In the event of a sale or
transfer of Landlord’s estate or interest in the Building,
Landlord shall transfer the Security Deposit to the purchaser or
transferee, and upon such transfer Landlord shall be considered
released by Tenant from all liability for the return of the
Security Deposit, provided Landlord’s purchaser or
transferee acknowledges said transfer of the Security Deposit in
writing.

     
3.2 Advance Deposit. Simultaneously
with the execution of this Lease by Tenant, Tenant shall deposit
with Landlord the sum of $9,081.83, which sum shall be subject
to adjustment upon final measurement of the Premises pursuant to
Section 1.1, as a deposit of the first month’s Rent
(the “Advance Deposit”), which shall be applied by
Landlord on behalf of the Tenant to the payment of the first
month’s Rent when due and payable. Any good faith deposit
made at the time Tenant executed and delivered to Landlord any
letter of intent or proposal to lease shall be applied toward
the amount of the Advance Deposit. The Advance Deposit, prior to
its being applied to the payment of monthly Rent, shall
constitute security for the payment and performance by Tenant of
all of Tenant’s obligations, covenants, conditions and
agreements under this Lease, but shall not be deemed liquidated
damages, but shall be applied in reduction of Tenant’s
total obligation(s) to Landlord.

     
3.3 No Separate Account. Landlord
shall not be obligated to hold the Security Deposit or Advanced
Deposit in a separate account from other Building or Project
funds.

4.     USES; TENANT
COVENANTS.

     
4.1 Permitted Uses. The Premises are
to be used for a retail, private and commercial branch banking
facility, with automated teller machine capability (the location
and installation of which shall be governed in accordance with
the terms and conditions of Exhibit C attached hereto)
(provided that not more than one automated teller machine shall
be permitted in the exterior portion of the Premises) and for
related banking services and for no other purpose whatsoever.

     
4.2 Other General Use Covenants.
Tenant shall not commit or allow to be committed any waste upon
the Premises, or any public or private nuisance. Tenant, at its

5

 

expense, shall comply with all laws relating to
its use and occupancy of the Premises and shall observe the
Rules and Regulations attached hereto as Exhibit D.
No act shall be done in or about the Premises that is unlawful,
or which will increase the existing rate of insurance on the
Building. In the event of a breach of the covenant set forth in
the immediately preceding sentence regarding insurance rates,
Tenant shall cease the activity giving rise to such increase,
and provided that the Landlord has delivered timely notice to
Tenant and Tenant has failed to cease any such conduct or
activity, and further provided that the increased insurance
premiums were in fact paid by Landlord as a result of such
activity, Tenant shall pay to Landlord any and all such
increases in insurance premiums resulting from such breach. So
long as Tenant continues to pay such increases in premiums, and
provided that the activity giving rise to such increased
premiums is an activity permitted under Section 4.1, above,
the continuation of such activity by Tenant shall not be
prohibited or constitute a breach of this Lease.

5.     ENVIRONMENTAL
PROVISIONS; RECYCLING.

     
5.1 General. Tenant agrees to comply
(and to cause its agents, employees, contractors and, while
within the Premises, invitees to comply) with any and all
applicable Environmental Laws (as defined below) in connection
with (1) Tenant’s use and occupancy of the Premises,
(2) any use and occupancy of the Premises arising in
connection with any assignment of this Lease, or sublease or
license of the Premises or any part thereof, and (3) any
other fact or circumstance the existence of which legally
imposes on Tenant the obligation to so comply therewith. Tenant
shall provide all information within Tenant’s control
requested by Landlord and/or governmental authorities in
connection with Environmental Laws or Hazardous Materials
(defined below) relating to the matters contemplated in the
preceding sentence.

     
5.2 Tenant’s Warranties and
Covenants

		
	 	     
    During the Term and any Renewal Term (as
    hereafter defined) of the Lease, Tenant warrants, represents and
    covenants to and with Landlord as follows:
    
	 
	 	     
    5.2.1 Tenant will not introduce, or permit
    or suffer the introduction, within the Premises or the Project
    of (A) asbestos in any form, (B) urea formaldehyde
    foam insulation, (C) transformers or other equipment which
    contain dielectric fluid containing polychlorinated biphenyls,
    or (D) except as permitted below, any flammable explosives,
    radioactive materials or other substance constituting
    “hazardous materials” or “hazardous wastes”
    pursuant to the Comprehensive Environmental Response,
    Compensation and Liability Act of 1980, as amended
    (42 U.S.C. Sections 9601 et seq.), the Hazardous
    Materials Transportation Act, as amended (49 U.S.C.
    Sections 1801 et seq.), the Resource Conservation and
    Recovery Act, as amended (42 U.S.C. Sections 9601 et
    seq.) and the regulations adopted and promulgated pursuant
    thereto, the Federal Water Pollution Control Act (33 U.S.C.
    Section 1251 et seq.), the Clean Air Act (42 U.S.C.
    Section 7401 et seq.), and in the regulations adopted and
    publications promulgated pursuant thereto, or successor
    legislation thereto, or any other Federal, state or local
    environmental law, ordinance, rule, regulation and/or other
    statute of a governmental or quasi-governmental authority
    relating to pollution or protection of the environment
    (collectively, “Environmental Laws”). The substances
    described in (A), (B), (C) or (D) above are hereinafter
    collectively referred to herein as “Hazardous
    Materials”.
    

6

 

		
	 	     
    5.2.2 Except as expressly permitted hereby,
    the Premises will never be used by Tenant for any activities
    involving, directly or indirectly, the use, generation,
    treatment, transportation, storage or disposal of any Hazardous
    Materials, or to refine, produce, store, handle, transfer,
    process or transport Hazardous Materials.
    
	 
	 	     
    5.2.3 Tenant (A) shall comply with the
    Environmental Laws and all other applicable laws, rules and
    regulations or orders pertaining to health, the environment or
    Hazardous Materials, in so far as such laws pertain to
    Tenant’s use and occupancy of the Premises or the need for
    such compliance arises due to the acts or omissions of Tenant,
    its agents, employees, contractors, invitees (while within the
    Premises), subtenants or assignees, (B) shall not, except
    as specifically permitted hereby, store, utilize, generate,
    treat, transport or dispose of (or permit or acquiesce in the
    storage, utilization, generation, transportation, treatment or
    disposal of) any Hazardous Materials on or from the Premises,
    (C) shall cause its agents, employees, licensees,
    contractors, invitees (while within the Premises), subtenants
    and assignees to comply with the representations, warranties and
    covenants herein contained and be responsible for any
    non-compliance by any such party(ies), (D) agrees that no
    portion of the Premises will be used by Tenant or any assignee
    or subtenant of Tenant as a landfill or a dump, and
    (E) will not install any underground tanks of any type.
    
	 
	 	     
    5.2.4 In the event of any future storage,
    presence, utilization, generation, transportation, treatment or
    disposal of Hazardous Materials in, on or about the Premises, or
    in the event of any Hazardous Materials Release (as hereinafter
    defined) which in either case is attributable, in whole or in
    part, to the presence of Hazardous Materials existing in, on or
    about on the Project subsequent to the Commencement Date and is
    caused, directly or indirectly, by Tenant or Tenant’s
    agents, employees, contractors, licensees, invitees (while
    within the Premises), sub-tenants or assignees, or is otherwise
    Tenant’s responsibility under the terms of this Lease,
    Tenant shall, at the direction of Landlord or any federal,
    state, or local authority or other governmental authority,
    remove or cause the removal of any such Hazardous Materials and
    rectify any such Hazardous Materials Release, and otherwise
    comply or cause compliance with the laws, rules, regulations or
    orders of such authority, all at the expense of Tenant,
    including without limitation, the undertaking and completion of
    all investigations, studies, sampling and testing and all
    remedial, removal and other actions necessary to clean up and
    remove all Hazardous Materials, on, from or affecting the
    Premises. If, under such circumstances, Tenant shall fail to
    proceed with such removal or otherwise comply with such laws,
    rules, regulations or orders within the cure period permitted
    under the applicable regulation or order, the same shall
    constitute a Default under this Lease (without any notice to
    Tenant required), and Landlord may, but shall not be obligated
    to, take such action as may be reasonably necessary under the
    circumstance to eliminate such Hazardous Materials from the
    Premises or otherwise comply with the applicable law, rule,
    regulation or order, acting either in its own name or in the
    name of Tenant pursuant to this Section, and the cost thereof
    shall be borne by Tenant and thereupon become due and payable as
    Additional Rent hereunder; provided, however, that Landlord
    shall not exercise its self-help rights hereunder nor exercise
    any right otherwise provided herein to terminate this Lease or
    Tenant’s right of possession due to Tenant’s failure
    or inability to correct such problem within a time certain as
    long as Tenant is at all times using its best efforts its
    efforts to correct the problem (provided however, that if
    Landlord determines, in its reasonable discretion, that there
    exists a substantial risk of governmental enforcement action
    against Landlord, or governmental or third party civil liability
    to Landlord, if Landlord fails to take independent action
    immediately to remediate an environmental problem which is
    otherwise Tenant’s responsibility under this
    Section 5, then 

    

7

 

		
	 	
    Landlord shall, notwithstanding Tenant’s
    continuing best efforts to correct the problem, be entitled to
    take such independent action, and to recover the reasonable and
    actual costs associated therewith from Tenant). Tenant shall
    give to Landlord and its authorized agents and employees access
    to the Premises for such purposes and hereby specifically grants
    to Landlord a license to remove the Hazardous Materials and
    otherwise comply with such applicable laws, rules, regulations
    or orders, acting either in its own name or in the name of the
    Tenant pursuant to this Section.
    

		
	 	     
    5.2.5 Landlord represents, warrants and
    covenants that to the best of its current actual knowledge, as
    of the date of execution hereof, the Land is free from any
    Hazardous Materials and is not in violation of any Environmental
    Laws.
    
	 
	 	     
    5.2.6 Each of Tenant and Landlord hereby
    indemnifies and holds the other and their respective
    shareholders, constituents, subsidiaries, affiliates, officers,
    directors, partners, employees, agents and trustees harmless
    from, against, for and in respect of, any and all damages,
    losses, settlement payments, obligations, liabilities, claims,
    actions or causes of actions, encumbrances, fines, penalties,
    and costs and expenses suffered, sustained, incurred or required
    to be paid by any such indemnified party (including, without
    limitation, reasonable fees and disbursements or attorneys,
    engineers, laboratories, contractors and consultants) because
    of, or arising out of or relating to a violation of any of the
    indemnifying party’s representations, warranties and
    covenants under this Section, including any Environmental
    Liabilities (as hereinbelow defined) arising therefrom. For
    purposes of this indemnification clause, “Environmental
    Liabilities” shall include all costs and liabilities with
    respect to the presence, removal, utilization, generation,
    storage, transportation, disposal or treatment of any Hazardous
    Materials or any release, spill, leak, pumping, pouring,
    emitting, emptying, discharge, injection, escaping, leaching,
    dumping or disposing into the environment (air, land or water)
    of any Hazardous Materials (each a “Hazardous Materials
    Release”), including without limitation, cleanups, remedial
    and response actions, remedial investigations and feasibility
    studies, permits and licenses required by, or undertaken in
    order to comply with the requirements of, any federal, state or
    local law, regulation, or agency or court, any damages for
    injury to person, property or natural resources, claims of
    governmental agencies or third parties for cleanup costs and
    costs of removal, discharge, and satisfaction of all liens,
    encumbrances and restrictions on the Premises relating to the
    foregoing. The foregoing notwithstanding, the foregoing
    indemnifications shall not encompass consequential damages or
    damages related to loss of business or business interruption
    which may arise on account of the presence of any Hazardous
    Materials on or about the Project. The foregoing indemnification
    and the responsibilities of Tenant and Landlord under this
    Section shall survive the termination or expiration of this
    Lease.
    
	 
	 	     
    5.2.7 Tenant shall promptly notify Landlord
    in writing of the occurrence of any Hazardous Materials Release
    or any pending or threatened regulatory actions, or any claims
    made by any governmental authority or third party, relating to
    any Hazardous Materials or Hazardous Materials Release on or
    from the Premises, and shall promptly furnish Landlord with
    copies of any correspondence or legal pleadings or documents in
    connection therewith. Landlord shall have the right, but shall
    not be obligated, to notify any governmental authority of any
    state of facts which may come to its attention with respect to
    any Hazardous Materials or Hazardous Materials Release on or
    from the Premises following consultation with Tenant.
    
	 
	 	     
    5.2.8 Tenant agrees that Landlord shall have
    the right (but not the obligation) to conduct, or to have
    conducted by its agents or contractors, such periodic 

    

8

 

		
	 	
    environmental inspections of the Project as
    Landlord shall reasonably deem necessary or advisable from time
    to time. Landlord shall provide Tenant with no less than
    seventy-two (72) hours prior notice of any such inspection
    within the interior of the Premises, except in case of an
    emergency, in which case only such notice as may be practicable
    under the circumstance shall be required. The cost of any such
    inspection shall be borne by Tenant in the event such inspection
    determines that Tenant has breached the covenants set forth in
    Section 5.2.3 above.
    

     
5.3 Permitted Materials.
Notwithstanding the foregoing, Tenant and its assignees,
subtenants and licensees shall be permitted to store reasonable
amounts of Hazardous Materials that are typically used in an
ordinary banking use environment such as ordinary cleaners,
printer and duplication supplies and similar materials (the
“Permitted Materials”) provided such Permitted
Materials are properly used, stored and disposed of in a manner
and location meeting all Environmental Laws. Any such use,
storage and disposal shall be subject to all of the terms of
this Section (except for the terms prohibiting same), and Tenant
shall be responsible for obtaining any required permits and
paying any fees and providing any testing required by any
governmental agency with respect to the Permitted Materials. If
Landlord in its reasonable opinion determines that said
Permitted Materials are being improperly stored, used or
disposed of, then Tenant shall immediately take such corrective
action as requested by Landlord. Should Tenant fail to take such
corrective action within twenty-four (24) hours, Landlord shall
have the right to perform such work on Tenant’s behalf and
at Tenant’s sole expense, and Tenant shall promptly
reimburse Landlord for any and all costs associated with said
work.

     
5.4 Recycling Regulations. Tenant
shall be solely responsible for compliance with all orders,
requirements and conditions now or hereafter imposed by any
ordinances, laws, orders and/or regulations (hereinafter
collectively called “regulations”) of any governmental
body having jurisdiction over the Premises or the Building
regarding the collection, sorting, separation and recycling of
waste products, garbage, refuse and trash (hereinafter
collectively called “waste products”).

6.     LATE CHARGES;
INTEREST LATE CHARGES; INTEREST.

     
6.1 Tenant hereby acknowledges that late
payment to Landlord of Base Rent or Additional Rent will cause
Landlord to incur administrative costs and loss of investment
income not contemplated by this Lease, the exact amount of which
will be extremely difficult to ascertain. If any Base Rent or
Additional Rent due from Tenant is not received by Landlord or
Landlord’s designated agent within ten (10) days after the
date due, then Tenant shall pay to Landlord a late charge equal
to five percent (5%) of such overdue amount. The parties hereby
agree that such late charges represent a fair and reasonable
estimate of the administrative cost that Landlord will incur by
reason of Tenant’s late payment. Landlord’s acceptance
of such late charges shall not constitute a waiver of
Tenant’s Default with respect to such overdue amount or
otherwise estop Landlord from exercising any of the other rights
and remedies granted hereunder.

     
6.2 In addition to the administrative late
charge provided for under Section 6.1, above, if any Base Rent
or Additional Rent or any other sum due hereunder from Tenant to
Landlord is not paid as and when due under this Lease, and such
amount remains unpaid ten (10) days after such due date, then
the unpaid amount shall bear interest from the date originally
due until the date paid at an annual rate of interest equal to
the “prime rate” of interest as published in the Wall
Street Journal (or, if not published, as established by the 

9

 

then largest national banking association in the
United States of America) from time to time (the “Prime
Rate”) plus two percent (2%) (the “Default
Rate”).

7.     REPAIRS AND
MAINTENANCE.

     
7.1 Landlord’s Obligations.
Landlord shall maintain, repair, replace and keep in good
operating condition, comparable to similar properties in the
Reston, Virginia area, the Common Areas (as defined in
Section 39 below), the roofs, foundations, load-bearing
elements, conduits and structural walls and other structural
elements of the Building, the underground utility and sewer
pipes of the Building, all base building mechanical, electrical,
plumbing, HVAC system and the sprinkler system and other fire
and life-safety systems, and the adjacent parking structure and
connector, the cost of which shall be included within Operating
Costs except to the extent set forth in Section 9.6,
hereof, provided that, to the extent the need for any such
repairs or replacements arise as the result of the gross
negligence or willful misconduct of Tenant (or Tenant’s
agents, employees, contractors, invitees (while within the
Premises), assignees or sub-tenants) and the same is not covered
under the policies of casualty insurance which are required to
be carried by the parties pursuant to this Lease (in which case
the proceeds of such insurance will be utilized to satisfy the
cost thereof), the cost of such repairs or replacements shall be
reimbursable by Tenant to Landlord as Additional Rent under this
Lease, and such reimbursement shall be due not later than thirty
(30) days after Landlord’s written demand therefore. Any
warranted defects in the Building discovered by Tenant or
Landlord within the applicable warranty period shall be timely
repaired at no expense to Tenant.

     
7.2 Repair Standards. All repairs and
maintenance required of Landlord pursuant to this Section or
elsewhere in this Lease shall be performed in accordance with
standards applicable to comparable buildings in Reston,
Virginia, the applicable building and governmental codes, and
performed in a timely and diligent fashion. Landlord agrees to
diligently attend to any routine repairs or maintenance needs
brought to its attention by Tenant as soon as reasonably
practicable and in a manner calculated to minimize to the extent
possible disruption of Tenant’s business activities.

     
7.3 Tenant’s Obligations.
Subject to Landlord’s obligations as set forth in
Section 7.1 above and its right of access pursuant to
Section 18, Tenant shall be exclusively responsible for the
cleaning, maintenance and repairs to the interior non-structural
portions of the Premises. Tenant shall promptly report in
writing to Landlord any defective condition in the Premises
known to Tenant which Landlord is required to repair, and
failure to so report such defects shall excuse any delay by
Landlord in commencing and completing such repair to the extent
the same would otherwise by Landlord’s responsibility under
this Lease, provided that (i) Landlord shall not be so
excused if Landlord had actual knowledge of the need for such
repair independent of Tenant’s notification, and
(ii) once Landlord is notified or has actual knowledge of
the need for such repair, Landlord’s repair obligation
under Section 7.1, above, shall be fully effective as to
such item (and, to the extent any delay in reporting such
defects results in the otherwise avoidable need to perform a
capital repair or replacement which under Section 9.5 is
excluded from Operating Costs, in lieu of an ordinary repair
which under Section 9.5 would be included within Operating
Costs, Tenant shall be responsible for the reasonable and actual
cost of such capital repair or replacement unless Tenant can
demonstrate that a capital repair or replacement to such item
would in any event have been necessary within twelve (12) months
thereafter, even if the defective condition had been reported to
Landlord or known by Landlord in a timely fashion).
Landlord’s obligation to make repairs shall be limited to
the express obligations stated herein.

10

 

8.     UTILITIES AND
SERVICES.

     
8.1 Services. Landlord shall furnish
Tenant with the following services and facilities: (i) hot
and cold running water sufficient for needs attributable to
Tenant’s banking use; (ii) public lavatory facilities
and supplies; and (iii) access to the Building and adjacent
parking structure and parking areas; all collectively
24 hours a day, 365 days a year, including holidays;
and the cost of which shall be deemed an Operating Cost
hereunder unless otherwise provided above. For purposes hereof,
“holidays” shall be New Year’s Day, Memorial Day,
July 4th, Labor Day, Thanksgiving, and Christmas, and business
hours shall be 7:30 a.m. to 6:00 p.m. Monday through
Friday, excluding holidays, and 9:00 a.m. to 2:00 p.m.
on Saturdays, excluding holidays (provided that Tenant shall
have access to the Premises 24 hours per day, 7 days
per week). Landlord shall provide perimeter security for the
Building via a Data Watch or similar key-card system. All
key-cards for such system shall be obtained by Tenant in
accordance with Section 42 hereof. Tenant shall be
responsible for any and all security required for the Premises
and the retail banking business to be conducted therein.

     
8.2 Additional Services. If Tenant
requires services on weekends beyond 2:00 p.m. on Saturday
or holidays, Landlord shall make reasonable efforts to provide
such additional service after reasonable prior written request
therefor from Tenant, and Tenant shall reimburse Landlord for
such additional service within ten (10) days of request
therefore, at the actual direct cost to Landlord.

     
8.3 Additional Provisions. Except as
specifically and expressly set forth hereinbelow, in no event
shall Landlord be liable to Tenant for (a) any damage to
the Premises, or (b) any loss, damage or injury to any
property therein or thereon, or (c) any claims for the
interruption of or loss to Tenant’s business or for any
damages or consequential losses occasioned by bursting, rupture,
leakage or overflow of any plumbing or other pipes or other
similar cause in, above, upon or about the Premises or the
Building, or (d) any interruption in any utility or other
services to the Premises; If any public utility or governmental
body shall require Landlord or Tenant to restrict the
consumption of any utility or reduce any service to the Premises
or the Building, Landlord and Tenant shall comply with such
requirements, without any abatement or reduction of the Base
Rent, Additional Rent or other sums payable by Tenant hereunder.

     
8.4 Electrical and Water Consumption.
Tenant shall be responsible for the entirety of the cost of all
electrical service utilized at and water consumed within the
Premises. Landlord shall request from the applicable utility
provider that the electrical and water services to the Premises
be separately metered by such providers, in which event, Tenant
shall arrange for and pay all usage costs incurred in connection
with such utilities. In the event authorization is obtained for
such direct metering directly with the utility provider, the
same shall be done as a part of Landlord’s Work, and Tenant
shall arrange such service directly with the applicable utility
provider. In the event the Premises is not able to be
submetered, Landlord shall, at its expense, install a submeter
or check meter at the Premises, and such utility charges shall
be reimbursed to Landlord as Additional Rent hereunder based
upon Landlord’s written documentation of Tenant’s
share of utility charges calculated from such submetering.

11

 

9.     OPERATING
COSTS.

     
9.1 Defined. Commencing with the
first day of the first Lease Year and continuing during each
calendar year or portion thereof during the Term, Tenant shall
pay as Additional Rent to Landlord, without diminution, set-off
or deduction, Tenant’s Share of “Operating Costs”
(as defined in Section 9.4, below) for each calendar year.
For purposes hereof, Tenant’s Share of Operating Costs
shall mean Tenant’s Share of the amount of all Operating
Costs which are attributable to all tenants in the Building,
inclusive of retail tenants (as determined by Landlord from time
to time), plus a percentage of all Operating Costs attributable
to only the retail portions of the Building to the exclusion of
office tenants within the Building; such percentage determined
by a fraction, the numerator of which is the square footage of
the Premises and the denominator of which is the square footage
of the aggregate retail space within the Building being served
with the services for which such Operating Costs are being
incurred.

     
9.2 Estimated Payments. Tenant shall
make monthly installment payments toward Tenant’s Share of
Operating Costs on an estimated basis, based on Landlord’s
reasonable estimate of Operating Costs for such calendar year.
Tenant shall pay Landlord, as Additional Rent, commencing on the
first day of the Term and on the first day of each month
thereafter throughout the Term (and any extension thereof),
one-twelfth (1/12th) of Landlord’s estimate of
Tenant’s Share of Operating Costs for the then-current
calendar year. If at any time or times during such calendar year
it appears to Landlord that Tenant’s Share of Operating
Costs for such calendar year will materially vary from
Landlord’s estimate, Landlord may, by written notice to
Tenant, once during any calendar year, reasonably revise its
estimate for such calendar year and Tenant’s estimated
payments hereunder for such calendar year shall thereupon be
based on such revised estimate.

     
9.3 Annual Reconciliation. Landlord
shall provide to Tenant within a reasonable time after the end
of each calendar year (Landlord agreeing to endeavor so to do
within 120 days after the end of the applicable year,
provided that such shall not be a condition of Tenant’s
obligations arising as a result thereof or based thereon), a
detailed, itemized statement (the “Expense
Statement”), calculated in accordance with
Section 9.1, above, setting forth the total actual
Operating Costs for such calendar year and Tenant’s Share
of Operating Costs. The Expense Statement shall be certified by
Landlord as being true and correct in all material respects.
Landlord shall respond to any inquiries and requests for
invoices or other information with respect to Operating Costs
within thirty (30) days of any written request therefore by
Tenant. Within thirty (30) days after the delivery of such
Expense Statement, Tenant shall pay to Landlord the amount of
any shortfall in the amount of estimated payments made to
Landlord pursuant to Section 9.2 on account of
Tenant’s Share of Operating Costs for such calendar year,
and the actual amount shown as Tenant’s Share of Operating
Costs for such calendar year. In the event the Expense Statement
reflects an overpayment of Tenant’s Share of Operating
Costs for such year, such overpayment shall be credited against
the next due Base Rent hereunder, except if Tenant’s Lease
is no longer in effect then Landlord shall refund such amount to
Tenant within thirty (30) days.

     
9.4 Operating Costs. The term
“Operating Costs” shall mean all reasonable expenses
incurred by Landlord in connection with the operation,
management, maintenance and repair of the Building, Common Areas
and the Land in accordance with the standards applicable to
similar first class properties in the Reston, Virginia area,
subject to the qualifications set forth below. All Operating
Costs shall be determined according to generally accepted
accounting principles which shall be consistently applied.
Operating 

12

 

Costs include, but are not limited to, the
following items: (a) the cost of the personal property used
in conjunction with the operation, management, maintenance and
repair of the Building and the Project; (b) costs to repair
and maintain the Building, the Building roof and the Common
Areas; (c) all expenses paid or incurred by Landlord for
water, gas, electric, sewer and oil services for the Building;
(d) the costs and expenses incurred in connection with the
provision of the services set forth in Section 8, above and
any other services provided by Landlord to the Building from
time to time; (e) building supplies and materials used in
connection with repairs to the Project; (f) cleaning and
janitorial services in or about the Premises, the Building
(including without limitation Common Areas) and the Land;
(g) window glass replacement, repair and cleaning;
(h) repair, replacement and maintenance of the grounds,
including costs of landscaping, lighting, Project and Building
signage, gardening and planting, including service or management
contracts with independent contractors, including but not
limited to security and energy management services and costs;
(i) operational costs to achieve compliance with any
governmental laws, rules, orders or regulations, and excluding
capital expenses associated therewith except to the extent
specifically set forth below; (j) utility taxes;
(k) compensation (including employment taxes, fringe
benefits, salaries, wages, medical, surgical, and general
welfare benefits (including health, accident and group life
insurance), pension payments, payroll taxes for all personnel
employed by Landlord or its management company who perform
duties in connection with the operation, management, maintenance
and repair of the Building (allocated among all properties
served by such employees as determined by Landlord in its
reasonable discretion, if such employees are utilized by more
than one property) plus the salary and benefits of the property
manager specifically assigned to the Project; (l) any
(i) capital expenditures incurred to reduce Operating
Costs, to the extent of such reduction (and with any amount
remaining unrecovered by virtue of such limitation to carry
forward to subsequent calendar years, to the extent of any such
continuing reduction achieved in each such subsequent calendar
year, until recovered in full), (ii) capital expenditures
incurred to comply with any governmental law, order, regulation
or other requirement which is enacted or becomes effective after
the Commencement Date, and (iii) capital expenditures made
for the replacement of items (the repair of which would be
includable within Operating Costs) in lieu of repairs thereto,
provided (A) replacement of the item in lieu of repair is
either less costly on an annual basis than repair of the item in
question, or is necessary given the non-functioning condition of
the item in question, as determined by Landlord in good faith,
(B) this provision shall not apply to general renovations,
as opposed to needed repairs, of the Building or any elements
therein, and (C) such expenditure shall be recoverable only
over the useful life of the item in question by amortizing such
expenditure over such useful life (in accordance with applicable
federal income tax guidelines) at an annual interest rate equal
to the Prime Rate at the time of such expenditure, and only the
sum of all amortization payments payable during the year in
question shall be includable in Operating Costs in each year
during such recovery period; (m) cost of premiums for
casualty and liability insurance policies required to be
maintained by Landlord hereunder and any other insurance carried
by Landlord with respect to the Project; (n) license,
permit and inspection fees; (o) reasonable management fees
based upon a percentage of gross rental receipts, Operating
Costs, Real Estate Taxes and utility costs not to exceed four
percent (4%); (p) consulting fees in connection with the
provision of common area maintenance services; (q) personal
property and BPOL taxes; (r) trash removal, including all
costs incurred in connection with waste product recycling;
(s) snow and ice removal or prevention;
(t) maintenance, repair and striping of all parking areas
used by tenants of the Building, and any other cost or
assessment payable in connection with the maintaining of such
parking areas; (u) uniforms and dry cleaning;
(v) telephone, cellular phone, paging, telegraph, postage,
stationery supplies and other materials and expenses required
for the routine operation of the Building; (w) association
and other assessments for 

13

 

maintenance of offsite improvements serving or
benefiting the Building or the Land; (x) costs and expenses
relating to compliance with any ongoing existing proffer
obligations applicable to the Project; (y) the cost of
acquisition, repair, maintenance and replacement of seasonal
building decoration; (z) the cost of operating, maintaining,
repairing and replacing conduits and other electrical fixtures,
fire protection, alarm and sprinkler systems, Building and
Project plumbing and storm and sanitary sewer systems, and (aa)
other association assessments for common area services provided
to owners in the Plaza America complex.

     
9.5 Exclusions. Except as otherwise
provided in this lease, Operating Costs shall not include any of
the following: (1) capital expenditures, except those
specifically set forth above; (2) costs of any special services
rendered to individual tenants (including Tenant), for which a
special, separate charge shall be made directly to such Tenant
(and which charge shall be payable within thirty (30) days of
written demand); (3) painting, redecorating or other work
which Landlord performs for specific tenants, the expenses of
which are paid by such tenants; (4) Real Estate Taxes (as
defined in Section 10); (5) depreciation or amortization of
costs required to be capitalized in accordance with generally
accepted accounting practices (except as set forth in
Section 9.4, above); (6) interest and amortization of funds
borrowed by Landlord; (7) leasing commissions, and advertising,
legal, space planning and construction expenses incurred in
procuring tenants for the Building; (8) salaries, wages, or
other compensation paid to officers or executives of Landlord or
its property management company in their capacities as officers
and executives; (9) any other expenses for which Landlord
actually receives direct reimbursement from insurance,
condemnation awards, warranties, other tenants or any other
source but excluding general payments of Operating Costs
pursuant to this Section 9 by Tenant and other tenants of the
Building; (10) net basic rents under ground leases; (11) all
costs incurred in the initial construction of the Project; (12)
costs directly resulting from the gross negligence or willful
misconduct of Landlord, its employees, agents, contractors or
employees; (13) legal fees and other expenses incurred by
Landlord except in administering, contracting for services which
are a part of, and disputing Operating Costs; (14) costs or fees
relating to the defense of Landlord’s title or interest in
the Land; (15) costs incurred due to violation by Landlord of
the terms and conditions of this Lease; (16) renovation of the
Project made necessary by casualty or the exercise of eminent
domain; (17) costs arising from the presence of Hazardous
Materials in, about or below the Project; (18) costs incurred
for any items to the extent of Landlord’s recovery under a
manufacturer’s, materialmen’s, vendor’s or
contractor’s warranty (except to the extent of costs
incurred in such recovery); (19) income, excess profits,
franchise taxes or other such taxes imposed on or measured by
the net income of Landlord from the operation of the Building
(other than business professional occupational license tax);
(20) reserves for repairs, maintenance and replacements; (21)
Landlord’s general overhead expenses; (22) costs incurred
to achieve compliance with any governmental laws, ordinances,
rules, regulations or orders, except to the extent recoverable
under Section 9.4(i) and 9.4(1), above; (23) any penalties
or interest expenses incurred because of Landlord’s failure
timely to pay any Operating Costs (unless the same is the result
of Tenant’s failure to timely make any payment in respect
thereof required hereunder); (24) accounting fees other than
those attributable to reviewing and preparing operating
statements for the Building; (25) rental or similar payments
made in connection with the leasing of any equipment deemed to
be capital in nature except to the extent the acquisition of
such item would have been recoverable under Section 9.4(1),
above; and (26) any Operating Costs and services provided to
full service or office tenants in the Building and Project that
are not provided to net or retail tenants.

14

 

     
9.6 Further Adjustment. Operating
Costs for each calendar year shall be adjusted to include all
costs, expenses and disbursements which vary by occupancy or not
otherwise provided to all tenants that Landlord reasonably
determines would have been incurred if Landlord had provided all
utilities and services within the definition of Operating Costs
to tenants and occupants in the Building had the Building been
one hundred percent (100%) occupied throughout such year and
Landlord provides Tenant with written documentation and
calculation of such Operating Costs.

     
9.7 Multi-Project Operating Costs.
The Building is a part of a larger project or development
consisting of a total of four (4) commercial office
buildings as are more generally reflected on Exhibit B-1,
and as such, Landlord shall have the right (but not the
obligation) to allocate to the Building an appropriate portion
of those Operating Costs which are incurred with respect to the
project as a whole. By way of example, landscaping costs for a
multi-building project shall be allocated on an appropriate
basis between all tenantable buildings in the project.

10.     REAL ESTATE
TAXES.

     
10.1 Defined. Commencing with the
first day of the first Lease Year and continuing during each
calendar year or portion thereof during the Term, Tenant shall
pay as Additional Rent to Landlord, without diminution, set-off
or deduction, Tenant’s Share of “Real Estate
Taxes” (as defined in Section 10.3, below) paid in
such calendar year. For purposes hereof, Tenant’s Share of
Real Estate Taxes shall mean Tenant’s Share of all Real
Estate Taxes for the year in question.

     
10.2 Estimated Payment. Tenant shall
make monthly installment payments toward Tenant’s Share of
Real Estate Taxes on an estimated basis, based on
Landlord’s reasonable estimate of Real Estate Taxes for
such calendar year. Tenant shall pay Landlord, as Additional
Rent, commencing on the first day of the Term and on the first
day of each month thereafter throughout the Term (and any
extension thereof), one-twelfth (1/12th) of Landlord’s
estimate of Tenant’s Share of Real Estate Taxes for the
then-current calendar year. If at any time or times during such
calendar year it appears to Landlord that Tenant’s Share of
Real Estate Taxes for such calendar year will materially vary
from Landlord’s estimate, Landlord may, by written notice
to Tenant, once during any calendar year, reasonably revise its
estimate for such calendar year and Tenant’s estimated
payments hereunder for such calendar year shall thereupon be
based on such revised estimate.

     
10.3 Real Estate Taxes. For purposes
of this Lease, “Real Estate Taxes” shall mean all
taxes and assessments, general or special, ordinary or
extraordinary, foreseen or unforeseen, assessed, levied or
imposed upon the Building or the Land, or assessed, levied or
imposed upon the fixtures, machinery, equipment or systems in,
upon or used in connection with the operation of the Building or
the Land under the current or any future taxation or assessment
system or modification of, supplement to, or substitute for such
system. Real Estate Taxes shall include all reasonable expenses
(including, but not limited to, reasonable attorneys’ fees,
disbursements and actual costs) incurred by Landlord in
obtaining or attempting to obtain a reduction of such taxes,
rates or assessments, including any legal fees and costs
incurred in connection with contesting or appealing the amounts
or the imposition of any Real Estate Taxes. In the event Real
Estate Taxes (including special assessments) may be paid in
installments, they may be paid in installments or in lump sum,
at Landlord’s election (and in such event Real Estate Taxes
shall include such installments and interest paid on the unpaid
balance of the assessment, or the entirety thereof, as
applicable). The 

15

 

foregoing notwithstanding, Real Estate Taxes
shall not include: (i) any franchise, corporation, income
or net profits tax which may be assessed against Landlord or the
Project or both, (ii) transfer taxes assessed against
Landlord or the Project or both, (iii) penalties or
interest on any late payments of Landlord, or (iv) personal
property taxes of Tenant.

     
10.4 Annual Reconciliation. Landlord
shall provide to Tenant within a reasonable time after the end
of each calendar year (Landlord agreeing to endeavor so to do
within 120 days after the end of the applicable year, provided
that such shall not be a condition of Tenant’s obligations
arising as a result thereof or based thereon), with
Landlord’s calculation of Tenant’s Share thereof (the
“Tax Statement”). Within thirty (30) days after the
delivery of the Tax Statement, Tenant shall pay to Landlord the
amount of any shortfall in the amount of estimated payments made
to Landlord pursuant to Section 10.2 on account of
Tenant’s Share of Real Estate Taxes for such calendar year,
and the actual amount shown as Tenant’s Share of Real
Estate Taxes for such calendar year. In the event the Tax
Statement reflects an overpayment of Tenant’s Share of Real
Estate Taxes for such year, such overpayment shall be credited
against the next due Base Rent hereunder, except if
Tenant’s Lease is no longer in effect then Landlord shall
refund such amount to Tenant within thirty (30) days.

		
	11.	
    ADDITIONAL PROVISIONS; OPERATING COSTS AND
    REAL ESTATE TAXES.
    

     
11.1 Partial Year; End of Term. To
the extent that a more accurate method of allocating same cannot
be implemented by Landlord, Tenant’s Share of Operating
Costs and Real Estate Taxes for any partial calendar year shall
be determined by multiplying the amount of Tenant’s Share
thereof for the full calendar year by a fraction, the numerator
of which is the number of days during such partial year falling
within the Term and the denominator of which is 365. If this
Lease terminates on a day other than the last day of a calendar
year, the amount of any adjustment to Tenant’s Share of
Real Estate Taxes with respect to the year in which such
termination occurs shall be prorated on the basis which the
number of days from January 1 of such year to and including
such termination date bears to 365; and any amount payable by
Landlord to Tenant or Tenant to Landlord with respect to such
adjustment shall be payable within thirty (30) days after
delivery by Landlord to Tenant of the applicable Expense
Statement and Tax Statement with respect to such year.

     
11.2 Other Taxes. In addition to
Tenant’s Share of Operating Costs and Real Estate Taxes,
Tenant shall pay, prior to delinquency, all personal property
taxes payable with respect to all property of Tenant located in
the Premises or the Building, and shall provide promptly, upon
request of Landlord, written proof of such payment.

     
11.3 Covenant Regarding Timely Payment of
Operating Costs and Real Estate Taxes. Landlord covenants to
pay all Operating Costs and Real Estate Taxes before the same
become delinquent, subject to Tenant’s obligation to make
the payments contemplated by Article 9 and Article 10,
above, in a timely fashion.

     
11.4 Contesting Real Estate Taxes.
Landlord will have the right to employ a tax consulting firm to
attempt to assure a fair tax burden on the Project, provided
Landlord will use reasonable efforts to minimize the cost of
such service. The reasonable cost of such service shall be
included in the Real Estate Taxes hereunder in the year same
were incurred or paid, at Landlord’s election.
Additionally, during any such period, Landlord shall have the
right, in its reasonable judgment, to contest any tax
assessment, valuation or levy against the Project, and to retain
legal counsel and expert witnesses to assist in such contest and

16

 

otherwise to incur expenses in such contest, and
any reasonable fees, expenses and costs incurred by Landlord in
contesting any assessments, levies or tax rate applicable to the
Project, whether or not such contest is successful, shall be
included in Real Estate Taxes as set forth above.

     
11.5 Arbitration. Disputes regarding
Operating Costs, Real Estate Taxes, and any audit thereof, shall
be subject to arbitration in accordance with the provisions of
Section 49 hereof.

     
11.6 Tenant’s Right to Inspect.
Landlord shall maintain at all times during the term of this
Lease, within the Metropolitan Washington, D.C. area, full,
complete and accurate books of account and records with respect
to Operating Costs, and shall retain such books and records, as
well as such other documents as are customarily maintained by
Landlord and reasonably necessary to properly authenticate the
Operating Costs. Upon reasonable notice from Tenant, Landlord
shall make available at such place as Landlord may designate,
for Tenant’s inspection (or inspection performed by
Tenant’s accountant and/or consultants) Landlord’s
books and records relating to the Operating Costs for the
immediately preceding year. In the event that Tenant’s
inspection discloses that Landlord’s billings to Tenant for
increased Operating Costs exceeded the actual Operating Costs
attributable to Tenant, then Landlord shall refund the
difference and, in the event Landlord’s billings exceeded
by five percent (5%) the actual Operating Costs attributable to
Tenant, Landlord will pay Tenant for the reasonable expense
incurred for an independent third-party in performing such
inspection, in an amount not to exceed $2,000.00, and in any
event exclusive of any portion thereof in the nature of a
contingency or other “success” fee.

12.     TENANT’S
INSURANCE.

     
12.1 Coverage Requirements. Tenant
shall during the Term of this Lease, procure at its expense and
keep in force the following insurance:

		
	 	     
    Commercial general liability insurance naming the
    Landlord and Landlord’s managing agent as additional
    insureds against any and all claims for bodily injury and
    property damage occurring in or about the Premises or any
    appurtenances thereto covering the operation of the Tenant and
    any subtenants, licensees and concessionaires of the Tenant.
    Such insurance shall be written on an “Occurrence
    Form” and shall include, without limitation, blanket
    contractual liability recognizing provisions of this Lease,
    broad form property damage, coverage for independent
    contractors, personal injury liability and coverage for hired
    auto and non-ownership auto liability. Such insurance shall be
    primary and not contributing to any insurance available to
    Landlord and Landlord’s insurance shall be in excess
    thereto. Such insurance shall have a limit of not less than One
    Million Dollars ($1,000,000.00) per occurrence with a Two
    Million Dollars ($2,000,000.00) general aggregate with an excess
    (umbrella) liability insurance in the amount of Three Million
    Dollars ($3,000,000.00) per occurrence and Three Million Dollars
    ($3,000,000.00) annually in the aggregate; provided, however
    that no such limits shall be deemed limitation of the liability
    of Tenant hereunder. If Tenant has other locations that it owns
    or leases, the policy shall include an aggregate limit per
    location endorsement. Such liability insurance shall be primary
    and not contributing to any insurance available to Landlord and
    Landlord’s insurance shall be in excess thereto. In no
    event shall the limits of such insurance be considered as
    limiting the liability of Tenant under this Lease;
    

17

 

		
	 	     
    Personal property insurance insuring all
    equipment, trade fixtures, inventory, fixtures and personal
    property located within the Premises (excluding leasehold
    improvements, which shall be insured by and remain the property
    of Landlord, but specifically including plate glass insurance
    covering breakage of any glass frontage installed by or on
    behalf of Tenant within or as a part of the Premises). Such
    insurance shall be written on a replacement cost basis in an
    amount equal to one hundred percent (100%) of the full
    replacement value of the aggregate of the foregoing;
    Workers’ compensation and occupational disease insurance,
    employee benefit insurance and any other insurance in the
    statutory amounts required by the laws of the State where the
    operations are to be performed with broad-form all-states
    endorsement.
    
	 
	 	     
    Employer’s liability insurance with a limit
    of Five Hundred Thousands Dollars ($500,000.00) for each
    accident;
    
	 
	 	     
    Business income insurance and loss of rental
    insurance in an amount equal to at least twelve (12) months Rent.
    

     
12.2 Rating; Certificates;
Cancellation. The policies required to be maintained by
Tenant shall be with companies rated A-X or better in the most
current issue of Best’s Insurance Reports. Insurers shall
be licensed to do business in the Commonwealth of Virginia and
domiciled in the USA. Any deductible amounts under any insurance
policies required hereunder shall be commercially reasonable.
Certificates of insurance and certified copies of the policies
shall be delivered to Landlord prior to the Commencement Date
and annually thereafter at least thirty (30) days prior to the
expiration date of the old policy. Tenant shall have the right
to provide insurance coverage which it is obligated to carry
pursuant to the terms hereof in a blanket policy, provided such
blanket policy expressly affords coverage to the Premises and to
Landlord as required by this Lease. Each policy of insurance
shall provide notification to Landlord and any mortgagee(s) of
Landlord at least thirty (30) days prior to any cancellation or
modification to reduce the insurance coverage.

     
12.3 Other. In the event Tenant does
not purchase the insurance required by this Lease or keep the
same in full force and effect, and the same is not corrected
within five (5) business day following written notice thereof
from Landlord to Tenant, then Landlord may, but shall not be
obligated to, purchase the necessary insurance and pay the
premium therefore. Tenant shall repay to Landlord, as Additional
Rent, any and all reasonable expenses (including attorneys’
fees) and damages which Landlord may sustain by reason of the
failure of Tenant to obtain and maintain insurance.

13.     LANDLORD’S
INSURANCE.

     
13.1 Coverage. At all times during
the Lease Term, Landlord will maintain, the cost of which shall
be reimbursable as an Operating Cost hereunder, (a) fire
and extended coverage insurance covering the Project, including
all of Landlord’s Work, in an amount equal to one hundred
percent (100%) of the replacement value thereof, and
(b) public liability and property damage insurance in such
amounts as Landlord deems reasonable from time to time. Landlord
shall also have the right to obtain such other types and amounts
of insurance coverage on the Building (including loss of rental
insurance) and Landlord’s liability in connection with the
Building as are customary or advisable for a comparable project
in the Reston, Virginia area, as determined by Landlord in
Landlord’s reasonable 

18

 

judgment. Any dispute regarding the
appropriateness of such additional insurance coverage shall be
subject to arbitration pursuant to Section 49 of this Lease.

     
13.2 Rating; Certificates;
Cancellation. The policies required to be maintained by
Landlord shall be with companies rated A-X or better in the most
current issue of Best’s Insurance Reports. Insurers shall
be licensed to do business in the Commonwealth of Virginia and
domiciled in the USA. Any deductible amounts under any insurance
policies required hereunder shall be commercially reasonable, in
Landlord’s reasonable judgment. Landlord shall have the
right to provide insurance coverage which it is obligated to
carry pursuant to the terms hereof in a blanket policy, provided
such blanket policy expressly affords coverage to the Project
and to Tenant as required by this Lease.

14.     DAMAGE OR
DESTRUCTION.

     
14.1 Damage Repair.

		
	 	     
    14.1.1 If the Premises shall be destroyed or
    rendered untenantable, either wholly or in part, by fire or
    other casualty, then Landlord shall, within thirty (30) days
    after the date of such casualty, provide Tenant with
    Landlord’s good faith written estimate (the
    “Estimate”) of how long it will take to repair or
    restore the Premises.
    
	 
	 	     
    14.1.2 If neither party elects to terminate
    this Lease in accordance with the terms hereof following any
    casualty, then Landlord shall commence promptly and diligently
    prosecute to completion the restoration of the Premises to their
    previous condition, subject to Force Majeure as defined herein
    and delays caused by Tenant; and pending substantial completion
    of such restoration, the Base Rent and Additional Rent shall be
    abated in the same proportion as the untenantable portion of the
    Premises bears to the whole thereof, and this Lease shall
    continue in full force and effect provided Tenant can conduct
    its intended business use in the remaining portion of the
    Premises.
    
	 
	 	     
    14.1.3 If Landlord estimates within the
    Estimate that it will require in excess of one hundred twenty
    (120) days after the date Tenant’s right of termination
    hereunder expires to fully repair or restore the Premises in
    accordance herewith, then, within thirty (30) days after
    Landlord delivers Tenant the Estimate, Tenant and Landlord shall
    each have the right to terminate this Lease by written notice to
    the other, which termination shall be effective as of the date
    of such casualty, and all liabilities and obligations of
    Landlord and Tenant thereafter accruing shall terminate and be
    of no legal force and effect except as otherwise specifically
    set forth herein. Notwithstanding the foregoing, Tenant shall
    not have the right to terminate this Lease if the fire or other
    casualty was the result of Tenant’s gross negligence or
    willful misconduct.
    
	 
	 	     
    14.1.4 If neither party elects to terminate
    the Lease and Landlord fails or declines to exercise any other
    termination right pursuant to this Section 14, Landlord
    will use all reasonable efforts to commence and complete its
    restoration of the affected portions of the Premises promptly,
    and in the event Landlord is unable to complete such restoration
    within one hundred twenty (120) days after the date
    Tenant’s right of termination hereunder expires (or such
    longer period as was referenced in the Estimate, if applicable),
    as such period may be extended due to Force Majeure or due to
    any Tenant Delays (as such term is defined in Exhibit C
    hereof, and not limited as to the number of days) then within
    thirty (30) days after the expiration of such period (but in all
    events prior to the date Landlord completes its restoration of
    the Premises), Tenant shall again have the right to terminate
    this Lease upon 

    

19

 

		
	 	
    thirty (30) days prior written notice to
    Landlord; provided, however, that if Landlord substantially
    completes such restoration prior to the end of the thirty
    (30) day notice period, Tenant’s notice of termination
    shall be deemed rescinded and ineffective for all purposes, and
    this Lease shall continue in full force and effect. The
    provisions of this Section are in lieu of any statutory
    termination provisions allowable in the event of casualty damage.
    

		
	 	     
    14.1.5 If at any time in the course of its
    restoration of damaged portions of the Premises, Landlord
    believes in good faith that its original Estimate is no longer
    accurate for reasons other than Force Majeure (in which event
    the provisions of Section 14.1.4 shall control), Landlord
    shall have the right to deliver a revised Estimate to Tenant of
    the additional time period which Landlord believes will be
    required to fully repair or restore the Premises in accordance
    herewith, and, unless Tenant terminates this Lease by written
    notice to Landlord within ten (10) business days after its
    receipt of such revised Estimate from Landlord, Tenant shall be
    deemed to have agreed that, for all purposes of this
    Section 14.1, the 240 day time limit otherwise imposed
    upon completion of Landlord’s restoration of the damaged
    portions of the Premises shall be extended by the number of
    additional days needed to complete estimated by Landlord within
    such revised Estimate. If Tenant elects to terminate this Lease
    as to the damaged Building after receiving such a revised
    Estimate from Landlord, as aforesaid, such termination shall be
    effective as of the date of such notice of termination, and all
    liabilities and obligations of Landlord and Tenant thereafter
    accruing hereunder with respect to such Building shall terminate
    and be of no legal force and effect except as otherwise
    specifically set forth herein.
    

     
14.2 Reconstruction. If all or any
portion of the Premises is damaged by fire or other casualty and
this Lease is not terminated in accordance with the provisions
hereof, then all insurance proceeds under the policy referred to
in Section 13.1 hereof that are recovered by Landlord on
account of any such damage by fire or casualty shall be made
available for the payment of the cost of repair, replacing and
rebuilding.

     
14.3 Business Interruption. Other
than rental abatement as and to the extent provided in
Section 14.1,, no damages, compensation or claim shall be
payable by Landlord for inconvenience or loss of business
arising from interruption of business, repair or restoration of
the Building or Premises.

     
14.4 Repairs. Landlord’s repair
obligations, should it elect to repair, shall be limited to the
base Building, Common Areas and all interior improvements to and
property within the Premises which are covered or required to be
covered hereunder by Landlord’s insurance. Landlord shall
use reasonable efforts to commence such repairs and restorations
within a reasonable period after Landlord elects to restore the
Premises, and to complete such repairs within the time frames
referenced in Section 14.1, above. Tenant acknowledges that
any such repairs or restorations shall be subject to applicable
laws and governmental requirements, any disbursement
requirements imposed by Landlord’s mortgage (if any), and
to delay in the process of adjusting any insurance claim
associated therewith; and delays resulting from any of the
foregoing shall constitute a “Force Majeure”
hereunder, shall not in any event constitute a breach of this
lease by Landlord, and shall extend the time for completing such
restoration as long as Landlord uses reasonable efforts to
commence and complete such repairs and restorations in a timely
fashion.

     
14.5 End of Term Casualty. Anything
herein to the contrary notwithstanding, if more than thirty
(30%) of the Premises is destroyed or damaged during the last
eighteen (18) months of the Lease Term, then either
Landlord or Tenant shall have the right to terminate 

20

 

this Lease (in whole if the damage extends to all
of the Premises or otherwise as to the affected portion of the
Premises within the Building) upon thirty (30) days prior
written notice to the other, which termination shall be
effective on the date of such casualty. Such notice must be
delivered within thirty (30) days after such casualty, or
shall be deemed waived; provided, however, that Tenant may
revoke such termination notice, and require Landlord to restore
the Premises, by exercising any renewal option provided herein,
if any.

		
	15.	
    MACHINERY AND EQUIPMENT; ALTERATIONS AND
    ADDITIONS; REMOVAL OF FIXTURES.
    

     
15.1 Tenant shall not place a load upon the
floor of the Premises which exceeds the maximum live load of
80lbs per square foot which Landlord (or Landlord’s
architect or engineer) reasonably determines is appropriate for
the Building without Landlord’s prior written consent which
consent shall not be unreasonably withheld. Tenant will not
install or operate in the Premises any electrical or other
equipment requiring any changes, replacements or additions to
any base building system, without Landlord’s prior written
consent (and if such consent is granted Tenant shall be
responsible for the costs of such changes, replacements or
additions).

     
15.2 Other than the initial improvements to
be performed by Tenant and set forth in Exhibit C hereto,
Tenant shall not make or allow to be made any alterations,
additions or improvements to or on the Premises which affect any
structural or building system components of the Premises or
which, under applicable codes, rules and/or regulations require
any building electrical, plumbing or other permit, without
Landlord’s prior written consent. Any such alterations,
additions or improvements, including, but not limited to, wall
covering, paneling and built-in cabinet work, shall be made at
Tenant’s sole expense (and, with respect to structural
alterations, according to plans and specifications approved in
writing by Landlord), in compliance with all applicable laws, by
a licensed contractor, and in a good and workmanlike manner
conforming in quality and design with the Premises existing as
of the Commencement Date, shall not diminish the value of the
Building or the Premises and shall at once become a part of the
realty and shall be surrendered with the Premises (except as
provided in Section 15.3, below).

     
15.3 Upon the expiration or sooner
termination of the Lease Term, Tenant shall, at Tenant’s
sole expense, with due diligence, remove any alterations,
additions, or improvements made by Tenant which are designated
by Landlord to be removed at the time its consent to the
installation thereof is granted, and repair any damage to the
Premises caused by such removal. Tenant shall remove any of its
movable property, trade fixtures and roof devices. Tenant shall
pay Landlord any reasonable damages for injury to the Premises
or Building resulting from such removal. All items of
Tenant’s personal property that are not removed from the
Premises or the Building by Tenant at the termination of this
Lease shall be deemed abandoned and become the exclusive
property of Landlord, within five (5) days of written
notice to or demand upon Tenant. If the Premises are not
surrendered as and when aforesaid, Tenant shall indemnify
Landlord against all claims, losses, costs, expenses (including
reasonable attorneys’ fees) and liabilities resulting from
the delay by Tenant in so surrendering the same, including
without limitation any claims made by any succeeding occupant
founded on such delay. Tenant’s obligations under these
Sections 15.2 and 15.3 shall survive the expiration or
termination of this Lease.

21

 

16.     ACCEPTANCE OF
PREMISES.

     
Landlord shall tender, and Tenant shall accept
possession of, the Premises in accordance with the terms of
Exhibit C attached hereto. All provisions regarding
delivery of possession of the Premises, construction of
leasehold improvements to the Premises and any adjustments which
may be made with respect to the Commencement Date (as defined in
Section 1.4) are set forth in Exhibit C.

17.     TENANT
IMPROVEMENTS.

     
The provisions governing initial improvements to
be performed by Landlord or Tenant to the Premises are set forth
in Exhibit C hereto.

18.     ACCESS.

     
18.1 Subject to the restrictions set forth
below, Tenant shall permit Landlord and its agents to enter the
Premises at all reasonable times, upon reasonable advance notice
except for emergencies, during Tenant’s normal business
hours to inspect the same; to show the Premises to prospective
tenants, or interested parties such as prospective lenders and
purchasers; to exercise its rights under Section 48; to
clean, repair, alter or improve the Premises or the Building,
provided such alterations and repairs do not unreasonably
interfere with Tenant’s ability to conduct its business
during normal business hours; to discharge Tenant’s
obligations when Tenant has failed to do so within a reasonable
time after written notice from Landlord; to post notices of
non-responsibility and similar notices and “For Sale”
signs and to place “For Lease” signs upon or adjacent
to the Building or the Premises. Tenant shall permit Landlord
and its agents to enter the Premises at any time in the event of
an emergency. When reasonably necessary, Landlord may
temporarily close entrances, doors, corridors, elevators or
other facilities without liability to Tenant by reason of such
closure. In exercising the foregoing rights, Landlord shall use
reasonable efforts to minimize any disruption to Tenant’s
business. Landlord shall coordinate any entry into the Premises
with Tenant’s facilities supervisor at least 24 hours in
advance (except in cases of emergency involving fire or other
casualty, or other risk of injury or death to persons), and
Landlord acknowledges that Tenant may require Landlord and its
agents to be accompanied by a representative of Tenant for
security purposes upon Landlord’s entry to the Premises
(other than in cases of emergency involving fire or other
casualty, or other risk of injury or death to persons) for
legitimate, documented security purposes. Tenant shall supply
Landlord with telephone numbers for Tenant’s facilities
supervisor so that Landlord will be able to comply with
established security procedures to the extent feasible under the
circumstances in the event Landlord requires immediate access to
the Premises to cure any emergency situation.

     
18.2 Landlord shall be excused from such of
its obligations under this Lease as are directly and materially
impacted by the inability of Landlord to access the Premises or
any applicable part thereof due to Tenant’s security
restrictions, if and to the extent the performance of such
obligations was in fact hindered, frustrated, or rendered
impossible or impracticable due to the effort of such
restrictions on access.

22

 

19.     MUTUAL WAIVER
OF SUBROGATION.

     
19.1 Tenant. Notwithstanding anything
to the contrary in this Lease, whether the loss or damage is due
to the negligence of Landlord or Landlord’s agents or
employees, or any other cause, Tenant hereby releases Landlord
and Landlord’s agents and employees from responsibility for
and waives its entire claim of recovery for (i) any and all
loss or damage to the personal property of Tenant located in the
Project, arising out of any of the perils which are covered by
Tenant’s property insurance policy, with extended coverage
endorsements which Tenant is required to obtain under the
applicable provisions of this Lease, whether or not actually
obtained, or (ii) loss resulting from business interruption
at the Premises, arising out of any of the perils which may be
covered by the business interruption insurance policy required
to be carried by Tenant under this Lease.

     
19.2 Landlord. Notwithstanding
anything to the contrary in this Lease, whether the loss or
damage is due to the negligence of Tenant or Tenant’s
agents or employees, or any other cause, Landlord hereby
releases Tenant and Tenant’s agents and employees from
responsibility for and waives its entire claim of recovery for
any and all loss or damage to the Building or any personal
property of Landlord located about the Project and the Building
generally and all property attached thereto (excluding any such
property required to be insured by Tenant hereunder), arising
out of any of the perils which are covered by Landlord’s
property insurance policy which Landlord is required to obtain
under the applicable provisions of this Lease, whether or not
actually obtained.

     
19.3 Carriers. Landlord and Tenant
shall each cause its respective insurance carrier(s) to consent
to such waiver of all rights of subrogation against the other,
and to issue an endorsement to all policies of insurance
obtained by such party confirming that the foregoing release and
waiver will not invalidate such policies.

20.     INDEMNIFICATION.

     
20.1 Subject to the provisions of
Section 19 hereof and other provisions of this Lease,
Tenant shall indemnify and hold harmless Landlord, its agents,
employees, officers, directors, partners and shareholders from
and against any and all third party claims, liabilities,
judgments, demands, causes of action, claims, losses, damages,
costs and expenses, including reasonable attorneys’ fees
and costs, arising out of such third party claims, to the extent
arising out of (i) the use and occupancy of the Premises by
Tenant, its officers, contractors, licensees, agents, servants,
employees, guests, invitees, visitors, assignees or subtenants;
(ii) the negligence or willful misconduct of Tenant, its
officers, contractors, licensees, agents, servants, employees,
guests, invitees, visitors, assignees or subtenants, in or about
the Project; and/or (iii) any breach or Default by Tenant
under this Lease; provided that this indemnity shall not apply
to any loss, damage, liability or expense resulting from
injuries to third parties caused by the gross negligence or
willful misconduct of Landlord, or its officers, contractors,
licensees, agents, employees or invitees (while within the
Premises).

     
20.2 Subject to the provisions of
Section 19 hereof and other provisions of this Lease,
Landlord shall indemnify and hold harmless Tenant, its agents,
employees, officers, directors, partners and shareholders from
and against any and all third party claims, liabilities,
judgments, demands, causes of action, claims, losses, damages,
costs and expenses, including reasonable attorneys’ fees
and costs, arising out of such third party 

23

 

claims, to the extent arising out of (i) the
use and occupancy of the Building by the Landlord, its officers,
contractors, licensees within Landlord’s control, agents,
servants, employees, or guests, invitees and/or visitors to the
extent within Landlord’s control; and/or (ii) the
negligence or willful misconduct of Landlord, its officers,
contractors, agents, servants, or employees, in or about the
Project; provided that this indemnity shall not apply to any
loss, damage, liability or expense resulting from injuries to
third parties caused by the gross negligence or willful
misconduct of Tenant, or its officers, contractors, licensees,
agents, employees or invitees (while within the Premises).

     
20.3 The indemnifications set forth in this
Section 20 shall survive termination of this Lease.

21.     ASSIGNMENT
AND SUBLETTING.

     
21.1 Consent Required. Except as
specifically set forth herein to the contrary, Tenant shall not
assign, encumber, mortgage, pledge, license, hypothecate or
otherwise transfer the Premises or this Lease, or sublease all
or any part of the Premises, or permit the use or occupancy of
the Premises by any party other than Tenant, without the prior
written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed.

     
21.2 Procedure. Tenant must request
Landlord’s consent to such assignment or sublease in
writing at least thirty (30) days prior to the commencement date
of the proposed sublease or assignment, which written request
must include (a) the name and address of the proposed
assignee or subtenant, (b) the nature and character of the
business of the proposed assignee or subtenant,
(c) financial information (including financial statements)
of the proposed assignee or subtenant, and (d) all other
terms of the proposed sublet or assignment as well as a copy of
the agreement evidencing same. Tenant shall also provide any
additional information Landlord reasonably requests regarding
such proposed assignment or subletting. Within ten (10) days
after Landlord receives Tenant’s request (with all required
information included), Landlord shall, by written notice to
Tenant, elect either: (i) to grant its consent to such
proposed assignment or subletting, or (ii) to deny its
consent to such proposed assignment or subletting, setting forth
with specificity the reason for such denial. If Landlord does
not exercise either of the above options within fifteen (15)
business days after Landlord receives Tenant’s request,
then Tenant may assign or sublease the Premises upon the terms
stated in Tenant’s request.

     
21.3 Conditions. Any subleases and/or
assignments hereunder are also subject to all of the following
terms and conditions:

		
	 	     
    21.3.1 If Landlord approves an assignment or
    sublease as herein provided (other than an assignment or
    sublease pursuant to Section 21.4 hereof), Tenant shall pay
    to Landlord, as Additional Rent due under this Lease (which
    amounts shall be due immediately upon receipt by Tenant),
    seventy five percent (75%) of the “Net Profits” (as
    defined below) generated from such transaction during each Lease
    Year. For purposes hereof, the term “Net Profits”
    means: (i) with respect to assignment, the amount paid by
    the assignee to acquire Tenant’s rights under the Lease,
    less (1) the portion of such sum fairly attributable
    to the acquisition of Tenant’s leasehold improvements or
    personal property which were funded solely by Tenant, and
    (2) all reasonable and actual out-of-pocket expenses
    incurred and paid by Tenant in procuring such assignment,
    including, without limitation, brokerage fees, advertising
    costs, legal fees, allowances, the cost of leasehold
    improvements and other 

    

24

 

		
	 	
    concessions; and (ii) with respect to a sublease,
    the amount, if any, by which the rent, any additional rent and
    any other sums payable by the subtenant to Tenant under such
    sublease exceeds the sum of (x) that portion of the Base
    Rent plus Additional Rent payable by Tenant hereunder which is
    allocable to the portion of the Premises which is the subject of
    such sublease, (y) all reasonable and actual out-of-pocket
    expenses incurred by Tenant in procuring such sublease,
    including, without limitation, brokerage fees, advertising
    costs, legal fees, allowances, the cost of leasehold
    improvements and other concessions, and (z) the amortized
    costs of any leasehold improvements or personal property
    provided as a part of such transaction and existing prior to the
    commencement of the sublease term to the extent funded solely by
    Tenant. The foregoing payments shall be made to Landlord by
    Tenant within ten (10) days upon receipt of such sums by Tenant.
    

		
	 	     
    21.3.2 No consent to any assignment or
    sublease shall constitute a further waiver of the provisions of
    this Section, and all subsequent assignments or subleases may be
    made only with the prior written consent of Landlord, which
    consent shall not be unreasonably withheld, conditioned or
    delayed. In no event shall any consent by Landlord be construed
    to permit reassignment or resubletting by a permitted assignee
    or sublessee.
    
	 
	 	     
    21.3.3 Tenant shall remain liable for all
    Lease obligations, all of which shall be unaffected by any such
    sublease or assignment, and which Lease obligations shall remain
    in full force and effect for all purposes. An assignee of
    Tenant, at the option of Landlord, shall become directly liable
    to Landlord for all obligations of Tenant hereunder, but no
    sublease or assignment by Tenant shall relieve Tenant of any
    liability hereunder.
    
	 
	 	     
    21.3.4 Any assignment or sublease without
    Landlord’s prior written consent shall be void, and shall,
    at the option of the Landlord, constitute a Default under this
    Lease except as provided for in Section 21.2 and Section 21.4
    below.
    
	 
	 	     
    21.3.5 The term of any such assignment or
    sublease shall not extend beyond the Lease Term. In no event
    will any assignee or subtenant (other than pursuant to a
    transfer of the Lease within the scope of Section 21.4, below)
    have the right to renew or extend the term of this Lease
    pursuant to section 51, below.
    
	 
	 	     
    21.3.6 Without limitation, it shall not be
    unreasonable for Landlord to deny its consent to any proposed
    assignment or sublease if the proposed assignee or subtenant
    fails to satisfy, in Landlord’s reasonable judgment any one
    or more of the following criteria: (1) if the proposed
    assignee or sublessee has a net worth such that Landlord
    determines in its reasonable judgment that the proposed assignee
    or subtenant may be unable to meet its financial and other
    obligations under this Lease after such assignment or sublease;
    (2) if the proposed assignee or subtenant proposes to use
    the Premises for a purpose which is not a permitted use
    hereunder; (3) if the proposed assignee or subtenant has a
    history of landlord/tenant or debtor/creditor problems (such as,
    but not limited to, defaults, evictions, or other disputes) with
    Landlord, other landlords or other creditors; or
    (4) Landlord determines, in its reasonable judgment, that
    the proposed assignment/sublease documentation is not acceptable
    and provides written reasonable proposed revisions.
    

     
21.4 Affiliated Entity; Sale of
Business. Notwithstanding anything to the contrary in this
Lease, so long as such transfer is not effectuated as part of a
transaction or series of transfers orchestrated in order to
effect a transfer of this Lease (or Tenant’s interest
herein) in isolation to Tenant’s other leasehold interests
and assets, Landlord’s written consent shall not be
required for any sublease, assignment or other transfer of this
Lease to any other entity 

25

 

which (i) controls or is controlled by Tenant, or
(ii) is controlled by Tenant’s parent company, or (iii)
which purchases all or substantially all of the assets of
Tenant, or (iv) which purchases all or substantially all of the
ownership interests or stock of Tenant, provided,
however, that in each such event Tenant shall continue to
remain fully liable under the Lease, on a joint and several
basis with the assignee or acquiror of such assets or stock.
Tenant shall be required to give Landlord at least thirty (30)
days written notice in advance of any such sublease or
assignment, except with respect to transfers by operation of law
occasioned through a sale of publicly or privately traded shares
in Tenant.

22.     ADVERTISING.

     
Notwithstanding Tenant’s signage rights
under Section 40 hereto, Tenant shall not display any sign,
graphics, notice, picture, or poster, or any advertising matter
whatsoever, anywhere in or about the Premises or the Building at
places visible from anywhere outside or at the entrance to the
Premises without first obtaining Landlord’s written consent
thereto, which Landlord may grant or withhold in its sole
discretion; provided however that Tenant shall be entitled to
display customary signage reflecting Tenant’s hours of
operation, holiday and other schedules and the like. Tenant
shall be responsible to maintain any permitted signs and remove
the same at Lease termination. If Tenant shall fail to do so,
Landlord may do so at Tenant’s cost. Tenant shall be
responsible to Landlord for any damage caused by the
installation, use, maintenance or removal of any such signs.

23.     LIENS.

     
Tenant shall keep the Premises and the Building
free from any liens arising out of any work performed, materials
ordered or obligations incurred by or on behalf of Tenant, and
Tenant hereby agrees to indemnify and hold Landlord, its agents,
employees, independent contractors, officers, directors,
partners, and shareholders harmless from any liability, cost or
expense (including attorneys’ fees and defense costs) for
or arising from such liens. Tenant shall cause any such lien
imposed to be released of record by payment or posting of the
proper bond acceptable to Landlord within thirty (30) days after
written request by Landlord. Tenant shall give Landlord written
notice of Tenant’s intention to perform work on the
Premises which might result in any claim of lien at least ten
(10) days prior to the commencement of such work to enable
Landlord to post and record a Notice of Nonresponsibility or
other notice deemed proper before commencement of any such work.
If Tenant fails to remove any lien within the prescribed thirty
(30) day period, then Landlord may do so at Tenant’s
expense and Tenant’s reimbursement to Landlord for such
amount, including reasonable attorneys’ fees and costs,
shall be deemed Additional Rent hereunder.

24.     DEFAULT.

     
24.1 Tenant’s Default. A
“Default” under this Lease by Tenant shall exist if
any of the following occurs (taking into account the expiration
of the notice and cure periods provided for below):

		
	 	     
    24.1.1 If Tenant fails to pay Base Rent,
    Additional Rent or any other sum required to be paid hereunder
    within ten (10) days after written notice from Landlord that
    such payment was due, but was not paid as of the due date
    (provided, however, if Landlord has delivered two (2) such
    notices to Tenant within the prior twelve (12) month period, any
    subsequent failure to pay Base Rent, Additional Rent or any
    other sum required to be paid to Landlord hereunder on or before
    the due date for such payment occurring shall constitute a 

    

26

 

		
	 	
    Default by Tenant without requirement of such ten
    (10) day notice and opportunity to cure; but in the event a
    full year elapses between such failures then Tenant shall again
    have the right to such cure period); or
    

		
	 	     
    24.1.2 If Tenant fails to perform any term,
    covenant or condition of this Lease except those requiring the
    payment of money to Landlord as set forth in Section 24.1.1
    above, and Tenant fails to cure such breach within thirty
    (30) days after written notice from Landlord where such
    breach could reasonably be cured within such thirty
    (30) day period; provided, however, that where such failure
    could not reasonably be cured within the thirty (30) day
    period, that Tenant shall not be in Default if it commences such
    performance promptly after its receipt of Landlord’s
    written notice and diligently thereafter prosecutes the same to
    completion; provided that no such grace period to be permitted
    in the event of any one or more of the following: (i) the
    Default relates to the maintenance of insurance obligations,
    (ii) the Default relates to the assignment and subletting
    provisions, (iii) the Default relates to a violation of
    Section 5.2 of this Lease, (iv) the Default is of a
    nature as set forth in Section 24.1.3, in which event the
    periods set forth therein shall control, or Section 24.1.4,
    in which event there shall be no applicable cure period, or
    (v) there exists a reasonable possibility of danger to the
    health or safety of the Landlord, the Tenant, Tenant’s
    invitees, or any other occupants of, or visitors to, the
    Building; or
    
	 
	 	     
    24.1.3 If Tenant shall (i) make an
    assignment for the benefit of creditors, (ii) acquiesce in
    a petition in any court in any bankruptcy, reorganization,
    composition, extension or insolvency proceedings,
    (iii) seek, consent to or acquiesce in the appointment of
    any trustee, receiver or liquidator of Tenant and of all or
    substantially all of Tenant’s property, (iv) file a
    petition seeking an order for relief under the Bankruptcy Code,
    as now or hereafter amended or supplemented, or by filing any
    petition under any other present or future federal, state or
    other statute or law for the same or similar relief, or
    (iv) fail to win the dismissal, discontinuation or vacating
    of any involuntary bankruptcy proceeding within sixty
    (60) days after such proceeding is initiated; or
    
	 
	 	     
    24.1.4 If Tenant shall have abandoned or
    vacated the Premises or any material (i.e., in excess of 50%)
    portion thereof for a period of forty five (45) consecutive days.
    

     
24.2 Remedies. Upon a Default,
Landlord shall have the following remedies, in addition to all
other rights and remedies provided by law or available in equity
or otherwise provided in this Lease, any one or more of which
Landlord may resort to cumulatively, consecutively, or in the
alternative:

		
	 	     
    24.2.1 Landlord may continue this Lease in
    full force and effect, and this Lease shall continue in full
    force and effect as long as Landlord does not terminate this
    Lease, and Landlord shall have the right to collect Base Rent,
    Additional Rent and other charges when due.
    
	 
	 	     
    24.2.2 Landlord may terminate this Lease, or
    may terminate Tenant’s right to possession of the Premises,
    at any time by giving written notice to that effect. Upon the
    giving of a notice of the termination of this Lease, this Lease
    (and all of Tenant’s rights hereunder) shall immediately
    terminate, provided that, without limitation, Tenant’s
    obligation to pay Base Rent, Additional Rent, and any damages
    otherwise payable under this Section 24 when due in
    accordance with the terms of this Section, shall specifically
    survive such termination and shall not be extinguished thereby.
    Upon the giving of a 

    

27

 

		
	 	
    notice of the termination of Tenant’s right
    of possession, all of Tenant’s rights in and to possession
    of the Premises shall terminate but this Lease shall continue
    subject to the effect of this Section 24. Upon either such
    termination, Tenant shall surrender and vacate the Premises in
    the condition required by Section 26, and Landlord may
    re-enter and take possession of the Premises and all the
    remaining improvement or property and eject Tenant or any of the
    Tenant’s subtenants, assignees or other person or persons
    claiming any right under or through Tenant or eject some and not
    others or eject none. This Lease may also be terminated by a
    judgment specifically providing for termination. Any termination
    under this Section shall not release Tenant from the payment of
    any sum then due Landlord or from any claim for damages or Base
    Rent, Additional Rent or other sum previously accrued or
    thereafter accruing against Tenant, all of which shall expressly
    survive such termination. Reletting may be for a period shorter
    or longer than the remaining Lease Term. No act by Landlord
    other than giving written notice to Tenant shall terminate this
    Lease. Acts of maintenance, efforts to relet the Premises or the
    appointment of a receiver on Landlord’s initiative to
    protect Landlord’s interest under this Lease shall not
    constitute a constructive or other termination of Tenant’s
    right to possession or of this Lease, either of which may be
    effected solely by an express written notice from Landlord to
    Tenant. On termination, Landlord shall have the right to remove
    all Tenant’s personal property and store same at
    Tenant’s cost, and to recover from Tenant as damages:
    

		
	 	     
    (1) The worth at the time of award of unpaid
    Base Rent, Additional Rent and other sums due and payable which
    had been earned at the time of termination; plus
    
	 
	 	     
    (2) The worth at the time of award of the
    amount by which the unpaid Base Rent, Additional Rent and other
    sums due and payable which would have been payable after
    termination for the balance of the Lease Term exceeds the fair
    rental value of the Premises for the balance of the Term; plus
    
	 
	 	     
    (3) Any other amount necessary to compensate
    Landlord for all of the out-of-pocket costs incurred on account
    of Tenant’s failure to perform Tenant’s obligations
    under this Lease, including, without limitation, any cost or
    expenses reasonably incurred by Landlord: (i) in retaking
    possession of the Premises; (ii) in maintaining, repairing,
    preserving, restoring, replacing, cleaning, altering or
    rehabilitating the Premises or a portion thereof, including such
    acts for reletting to a new tenant or tenants; (iii) for
    leasing commission; or (iv) for any other costs necessary
    or appropriate to relet the Premises. To the extent any of such
    costs are incurred in connection with a lease transaction having
    a term in excess of the remaining Term hereof, all of the
    foregoing costs incurred in connection therewith shall be
    amortized on a straight-line basis over the term of such new
    lease, assuming equal monthly installments of principal and
    interest, at an interest rate of eight percent (8%), and
    Tenant’s liability shall be limited to the amortized
    portion of the same (i.e., the monthly payments as so
    determined) falling within the Term hereof.
    
	 
	 	     
    (4) The “worth at the time of
    award” of the amounts referred to in Section 24.2.2.1
    is computed by allowing interest at the Default Rate through the
    date of payment. The “worth at the time of award” of
    the amounts referred to in Section 24.2.2.2 shall be
    computed by discounting the same to present value using the
    Discount Rate. In lieu of the amounts recoverable by Landlord
    pursuant to Section 24.2.2.2, above, but in addition to the
    amounts specified in Section 24.2.2.1 and 24.2.2.3 (or any
    other 

    

28

 

		
	 	
    portion of this Section 24), Landlord may,
    at its sole election, recover “Indemnity Payments,” as
    defined hereinbelow, from Tenant. For purposes of this Lease
    “Indemnity Payments” means an amount equal to the Base
    Rent, Additional Rent and other payments provided for in this
    Lease which would have become due and owing hereunder from time
    to time during the unexpired Lease Term after the effective date
    of the termination, but for such termination, less the Base
    Rent, Additional Rent and other payments, if any, actually
    collected by landlord and allocable to the Premises. If Landlord
    elects to pursue Indemnity Payments as set forth above, Tenant
    shall, on demand, make Indemnity Payments monthly, and Landlord
    may sue for all Indemnity Payments at any time after they
    accrue, either monthly, or at less frequent intervals. Tenant
    further agrees that Landlord may bring suit for Indemnity
    Payments and/or any other damages recoverable herein at or after
    the end of the Lease Term as originally contemplated under this
    Lease, and Tenant agrees that, in such event, Landlord’s
    cause of action to recover the Indemnity Payments shall be
    deemed to have accrued on the last day of the Lease Term as
    originally contemplated. In seeking any new tenant for the
    Premises, Landlord shall be entitled to grant any concessions it
    deems reasonably necessary. In no event shall Tenant be entitled
    to any excess of any rental obtained by reletting over and above
    the rental herein reserved. To the fullest extent permitted by
    law, Tenant waives redemption or relief from forfeiture under
    any other present or future law, in the event Tenant is evicted
    or Landlord takes possession of the Premises by reason of any
    Default of Tenant hereunder.
    

		
	 	     
    24.2.3 Landlord may, with or without
    terminating this Lease, re-enter the Premises pursuant to
    judicial process (except in the event of Tenant’s
    abandonment of the Premises in which event no judicial process
    shall be required) and remove all persons and property from the
    Premises; such property may be removed and stored in a public
    warehouse or elsewhere at the cost of and for the account of
    Tenant. No re-entry or taking possession of the Premises by
    Landlord pursuant to this Section shall be construed as an
    election to terminate this Lease unless a written notice of such
    intention is given to Tenant.
    
	 
	 	     
    24.2.4 Tenant, on its own behalf and on
    behalf of all persons claiming through or under Tenant,
    including all creditors, does hereby specifically waive and
    surrender any and all rights and privileges, so far as is
    permitted by law, which Tenant and all such persons might
    otherwise have under any present or future law (1) except
    as may be otherwise specifically required herein, to the service
    of any notice to quit or of Landlord’s intention to
    re-enter or to institute legal proceedings, which notice may
    otherwise be required to be given, (2) to redeem the
    Premises, (3) to re-enter or repossess the Premises,
    (4) to restore the operation of this Lease, with respect to
    any dispossession of Tenant by judgment or warrant of any court
    or judge, or any re-entry by Landlord, or any expiration or
    termination of this Lease, whether such dispossession, re-entry,
    expiration or termination shall be by operation of law or
    pursuant to the provisions of this Lease, (5) to the
    benefit of any law which exempts property from liability for
    debt or for distress for rent or (6) to a trial by jury in
    any claim, action proceeding or counter-claim arising out of or
    in any way connected with this Lease.
    

25.     SUBORDINATION.

     
This Lease shall at all times be and remain
subject and subordinate to the lien of any mortgage, deed of
trust, ground lease or underlying lease now or hereafter in
force against the Premises, and to all advances made or
hereafter to be made upon the security thereof. Tenant shall
execute and return to Landlord any customary documentation 

29

 

requested by Landlord in order to confirm the
foregoing subordination within ten (10) days after
Landlord’s written request. In the event any proceedings
are brought for foreclosure, or in the event of the exercise of
the power of sale under any mortgage or deed of trust made by
the Landlord covering the Premises, Tenant shall attorn to the
purchaser at any such foreclosure, or to the grantee of a deed
in lieu of foreclosure, and recognize such purchaser or grantee
as the Landlord under this Lease. Tenant agrees that no
mortgagee or successor to such mortgagee shall be (i) bound
by any payment of Base Rent or Additional Rent for more than one
(1) month in advance, (ii) bound by any amendment or
modification of this Lease made without the consent of
Landlord’s mortgagee or such successor in interest
(iii) liable for damages for any breach, act or omission of
any prior landlord, or (iv) subject to any claim of offset
or defenses that Tenant may have against any prior landlord;
provided that such mortgagee or successor shall not be relieved
of the obligation to comply with all of the Landlord’s
obligations under the Lease accruing from and after the date
such mortgagee or successor takes title to the Project,
irrespective of whether the original non-compliance with any
such obligation arose prior to and is continuing as of such
date, or arose on or after such date (provided however that if
such obligation arose prior to the date such mortgagee or
successor took title to the Project, such mortgagee or successor
shall not be deemed in default until after the provision of any
notice of default required by this Lease to such mortgagee or
successor, and its failure to cure same within the cure provided
for herein).

     
The foregoing notwithstanding, Landlord shall use
commercially reasonable efforts to obtain (provided the same
shall not be deemed a condition precedent to the effectiveness
hereof) from any current and future mortgagee of the Building, a
subordination and non-disturbance agreement in favor of Tenant,
on such mortgagee’s standard form, protecting the interests
of Tenant and providing that Tenant’s occupancy of the
Premises shall not be disturbed as a result of a foreclosure of
the Building as long as Tenant is not then in default hereunder.
Tenant shall not be required to execute any subordination
agreement as set forth in the event such agreement does not
contain non-disturbance and attornment language in favor of
Tenant (in the applicable lender’s standard form).

26.     SURRENDER OF
POSSESSION.

     
Upon expiration of the Lease Term, Tenant shall
promptly and peacefully surrender the Premises to Landlord in as
good condition as when received by Tenant from Landlord or as
thereafter improved, reasonable use and wear and tear and damage
by fire, casualty and condemnation excepted. At Landlord’s
sole and absolute discretion, and upon a minimum of sixty
(60) days prior written notice from Landlord, any vault
(including safe deposit box structures) or similar structures
installed by Tenant, shall be removed by Tenant, at
Tenant’s sole expense, within a reasonable time after the
expiration or other termination of this Lease. If the Premises
are not surrendered in accordance with the terms of this Lease,
Tenant shall indemnify Landlord and its agents, employees,
independent contractors, officers, directors, partners, and
shareholders against any loss or liability including reasonable
attorneys’ fees and costs, and including liability to
succeeding tenants, resulting from delay by Tenant in so
surrendering the Premises. This indemnification shall survive
termination of this Lease.

30

 

27.     NON-WAIVER.

     
Waiver by Landlord of any breach of any term,
covenant or condition herein contained shall not be deemed to be
a waiver of such term, covenant, or condition(s), or any
subsequent breach of the same or any other term, covenant or
condition of this Lease, other than the failure of Tenant to pay
the particular rental so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of
such Base Rent.

28.     HOLDOVER.

     
If Tenant shall, without the written consent of
Landlord, hold over after the expiration of the Lease Term,
Tenant shall be deemed a tenant at sufferance, which tenancy may
be terminated as provided by applicable state law. During any
holdover tenancy (whether or not consented to by Landlord),
unless Landlord has otherwise agreed in writing, Tenant agrees
to pay to Landlord, a per diem occupancy charge equal to one
hundred one hundred fifty percent (150%) of the per diem Base
Rent and Additional Rent as was in effect under this Lease for
the last month of the Lease Term. Such payments shall be made
within five (5) days after Landlord’s demand, and in no
event less often than once per month (in advance). In the case
of a holdover which has been consented to by Landlord, unless
otherwise agreed to in writing by Landlord and Tenant, Tenant
shall give to Landlord thirty (30) days prior written
notice of any intention to quit the Premises, and Tenant shall
be entitled to thirty (30) days prior written notice to
quit the Premises, except in the event of non-payment of Base
Rent or Additional Rent in advance or the breach of any other
covenant or the existence of a Default. Upon expiration of the
Lease Term as provided herein, Tenant shall not be entitled to
any notice to quit, the usual notice to quit being hereby
expressly waived under such circumstances, and Tenant shall
surrender the Premises on the last day of the Lease Term as
provided in Section 26, above.

29.     CONDEMNATION.

     
29.1 Definitions. The terms
“eminent domain”, “condemnation”, and
“taken”, and the like in this Section 29 include
takings for public or quasi-public use, and sales under threat
of condemnation and private purchases in place of condemnation
by any authority authorized to exercise the power of eminent
domain.

     
29.2 Taking. If the whole of the
Premises is taken, either permanently or temporarily, by eminent
domain or condemnation, this Lease shall automatically terminate
as of the date title vests in the condemning authority, and
Tenant shall pay all Base Rent, Additional Rent, and other
payments up to that date. If any part of the Premises is
permanently taken, or if access to the by Tenant is, by virtue
of a taking, permanently denied, by eminent domain or
condemnation, then Landlord or Tenant shall have the right (to
be exercised by written notice to the other within sixty (60)
days after receipt of notice of said taking) to terminate this
Lease from the date when possession is taken thereunder pursuant
to such proceeding or purchase. If neither party elects to
terminate this Lease, as aforesaid, then Landlord shall within a
reasonable time after title vests in the condemning authority,
repair and restore, at Landlord’s expense, the portion not
taken so as to render same into an architectural whole to the
fullest extent reasonably possible, and, if any portion of the
Premises is taken, thereafter the Base Rent shall be 

31

 

reduced (on a per square foot basis) in
proportion to the portion of the Premises taken. If there is a
temporary taking involving the Premises or Building, if a taking
of other portions of the Building or Common Areas does not deny
Tenant access to the Building and Premises, then this Lease
shall not terminate, and Landlord shall repair and restore, at
its own expense, the portion not taken so as to render same into
an architectural whole to the fullest extent reasonably
possible, and, if any portion of the Premises was taken,
thereafter the Base Rent shall be reduced (on a per square foot
basis) in proportion to the portion of the Premises taken.

     
29.3 Award. Except as set forth
below, Landlord reserves all rights to damages to the Premises
or arising out of the loss of any leasehold interest in the
Premises created hereby, arising in connection with any partial
or entire taking by eminent domain or condemnation. Except as
referred to in this Section 29.3, Tenant hereby assigns to
Landlord any right Tenant may have to such damages or award, and
Tenant shall make no claim against Landlord or the condemning
authority for damages for termination of Tenant’s leasehold
interest or for interference with Tenant’s business as a
result of such taking. The foregoing notwithstanding, Tenant
shall have the right to claim and recover from the condemning
authority compensation for any loss which Tenant may incur for
Tenant’s moving expenses, business interruption or taking
of Tenant’s personal property (but specifically excluding
any leasehold interest in the Building or Premises) under the
then applicable law provided that Tenant shall not make any
claim that will detract from or diminish any award for which
Landlord may make a claim.

30.     NOTICES.

     
All notices and demands which may be required or
permitted to be given to either party hereunder shall be in
writing, and shall be delivered personally or sent by United
States certified mail, postage prepaid, return receipt
requested, or by Federal Express or other reputable overnight
carrier, to the addresses set out in Section 1.7, and to
such other person or place as each party may from time to time
designate in a notice to the other. Notice shall be deemed given
upon the earlier of actual receipt or refusal of delivery.

31.     MORTGAGEE
PROTECTION.

     
Tenant agrees to give any mortgagee(s) and/or
trust deed holder(s), by registered mail, a copy of any notice
of default served upon the Landlord, provided that prior to such
notice Tenant has been notified in writing (by way of notice of
assignment of rents and leases, or otherwise) of the addresses
of such mortgagee(s) and/or trust deed holder(s). Tenant further
agrees that if Landlord shall have failed to cure such default
within the time provided for in this Lease, then the
mortgagee(s) and/or trust deed holder(s) shall have an
additional thirty (30) days within which to cure such default or
if such default cannot be cured within that time, then such
additional time as may be necessary if within such thirty (30)
days any mortgagee and/or trust deed holder(s) has commenced and
is diligently pursuing the remedies necessary to cure such
default, during which time Tenant shall not have the right to
pursue any claim against Landlord, such mortgagee and/or such
trust deed holder(s), including but not limited to any claim of
actual or constructive eviction.

32

 

32.     COSTS AND
ATTORNEYS’ FEES..

     
In any litigation between the parties arising out
of this Lease, and in connection with any consultations with
counsel and other actions taken or notices delivered, in
relation to a default by any party to this Lease, the
non-prevailing party shall pay to the prevailing party all
reasonable expenses and court costs including attorneys’
fees incurred by the prevailing party, in preparation for and
(if applicable) at trial, and on appeal. Such attorney’s
fees and costs shall be payable upon demand.

33.     BROKERS.

     
Tenant represents and warrants to Landlord that
neither it nor its officers or agents nor anyone acting on its
behalf has dealt with any real estate broker other than
Insignia/ ESG (or behalf of Landlord) and Transwestern Carey
Winston (or behalf of Tenant) in the negotiating or making of
this Lease, both of which shall be paid a fee by Landlord
pursuant to separate written agreement upon the consummation of
this Lease. Tenant agrees to indemnify and hold Landlord, its
agents, employees, partners, directors, shareholders and
independent contractors harmless from all liabilities, costs,
demands, judgments, settlements, claims and losses, including
reasonable attorney’s fees and costs, incurred by Landlord
in conjunction with any such claim or claims of any other broker
or brokers claiming to have interested Tenant in the Building or
Premises or claiming to have caused Tenant to enter into this
Lease. Landlord represents that it has not dealt with any
brokers other than the parties listed above in negotiating and
entering into this Lease, and shall indemnify, defend and hold
Tenant harmless from any breach of the foregoing representation
and warranty.

34.     LANDLORD’S
LIABILITY.

     
Anything in this Lease to the contrary
notwithstanding, covenants, undertakings and agreements herein
made on the part of the Landlord are made and intended not for
the purpose of binding Landlord personally or the assets of
Landlord but are made and intended to bind only the
Landlord’s interest in the Premises and Building, as the
same may, from time to time, be encumbered, and no personal
liability shall at any time be asserted or enforceable against
Landlord or its stockholders, officers or partners or their
respective heirs, legal representatives, successors and assigns
on account of the Lease or on account of any covenant,
undertaking or agreement of Landlord in this Lease. In addition,
in no event shall Landlord be in default of this Lease unless
Tenant notifies Landlord in writing of the precise nature of the
alleged breach by Landlord, and Landlord fails to cure such
breach within thirty (30) days after the date of
Landlord’s receipt of such notice (provided that if the
alleged breach is of such a nature that it cannot reasonably be
cured within such thirty (30) day period, then Landlord
shall not be in default if Landlord commences a cure within such
thirty (30) day period and diligently thereafter prosecutes
such cure to completion). In no event shall Tenant have any
right to terminate this Lease by virtue of any uncured default
by Landlord.

35.     ESTOPPEL
CERTIFICATES.

     
Tenant shall, from time to time, within fifteen
(15) days of Landlord’s written request, execute,
acknowledge and deliver to Landlord or its designee a written
statement stating: the date the Lease was executed and the date
it expires; the date the Tenant 

33

 

entered occupancy of the Premises; the amount of
Base Rent, Additional Rent and other charges due hereunder and
the date to which such amounts have been paid; that this Lease
is in full force and effect and has not been assigned, modified,
supplemented or amended in any way (or specifying the date and
terms of any agreement so affecting this Lease); that this Lease
represents the entire agreement between the parties as to this
leasing; that all conditions under this Lease to be performed by
the Landlord have been satisfied (or specifying any such
conditions that have not been satisfied); that all required
contributions by Landlord to Tenant on account of Tenant’s
improvements have been received (or specifying any such
contributions that have not been received); that to
Tenant’s knowledge, following reasonable investigation and
inquiry, there are no existing defenses or offsets which the
Tenant has against the enforcement of this Lease by the
Landlord; that no Base Rent or Additional Rent has been paid
more than one (1) month in advance; that no security has been
deposited with Landlord (or, if so, the amount thereof) other
than the Security Deposit; or any other customary factual
matters evidencing the status of the Lease, as may be reasonably
required either by a lender making a loan to Landlord to be
secured by a deed of trust or mortgage against the Building, or
a purchaser of the Building, which written statement shall, to
the extent the certifications required to be made therein are
true and correct as of such time, be in substantially the same
form as Exhibit F attached hereto and made a part hereof
by this reference. It is intended that any such statement
delivered pursuant to this paragraph may be relied upon by a
prospective purchaser of Landlord’s interest or a mortgagee
of Landlord’s interest or assignee of any mortgage upon
Landlord’s interest in the Building. If Tenant fails to
respond within fifteen (15) days after receipt by Tenant of a
written request by Landlord as herein provided, Tenant shall be
deemed to have given such certificate as above provided without
modification and shall be deemed to have admitted the accuracy
of any information supplied by Landlord to a prospective
purchaser or mortgagee consistent with the terms of the estoppel
so requested.

36.     EXCLUSIVITY

     
Provided that Tenant is not in default hereunder,
Landlord agrees that during the Term and any applicable Renewal
Term(s), it shall not lease and, subject to the terms and
conditions of those existing leases identified on Schedule 1
attached hereto, it shall not permit under any future lease any
other tenant the right to sublease or assign, (i) first
floor level space in any Building within the Project to any
party other than Tenant for use as a retail or commercial branch
banking facility, thrift savings, or credit union, and
(ii) first floor space within the Building to a retail
branch of any financial services company. The foregoing shall be
inapplicable to any retail branch bank or financial services
company in the event that it, or any other entity which
(i) controls or is controlled by such other tenant, or
(ii) is controlled by such other tenant’s parent
company, or (iii) which purchases all or substantially all
of the assets of such other tenant, or (iv) which purchases
all or substantially all of the ownership interests or stock of
such other tenant, enters into a lease for not less than 50,000
square feet of aggregate space in the Project (the
“Exempted Banking Tenant”). In the event the Landlord
allows any first floor level space in the Building to be leased
to or occupied by an Exempted Banking Tenant, provided that
Tenant is not then in default hereunder, Tenant shall have the
option to terminate the Lease, provided that the Tenant
(i) exercises said option in writing within six (6) months
of the occupancy of first floor level space by said Exempted
Banking Tenant, (ii) pays to the Landlord one hundred
percent (100%) of the unamortized cost of the Construction
Allowance extended Tenant pursuant to the Lease, and
(iii) pays to the Landlord one hundred percent (100%) of
the unamortized cost of the brokerage commissions. For the 

34

 

purpose of this Paragraph, the amortization
period for calculating the aforementioned unamortized costs
shall be equal to the initial term of the Lease.

37.     TRANSFER OF
LANDLORD’S INTEREST.

     
In the event of any transfer(s) of
Landlord’s interest in the Premises or the Building to a
bona-fide third-party purchaser, other than a transfer for
security purposes only, the transferor shall be automatically
relieved of any and all obligations and liabilities on the part
of Landlord accruing from and after the date of such transfer,
and Tenant agrees to attorn to the transferee, provided the
transferee assumes all of transferor’s prospective
obligations and liabilities under the Lease.

38.     RIGHT TO
PERFORM.

     
If Tenant shall fail to pay any sum of money,
other than Base Rent and Additional Rent, required to be paid by
it hereunder or shall fail to perform any other act on its part
to be performed hereunder, and (except in the event of emergency
in which case no grace or cure period shall be applicable or
required) such failure shall continue for ten (10) days after
written notice from Landlord (or such longer cure period as may
be provided for herein), Landlord may, but shall not be
obligated so to do, and without waiving or releasing Tenant from
any obligations of Tenant, make any such payment or perform any
such other act on Tenant’s part to be made or performed as
provided in this Lease. Landlord shall have (in addition to any
other right or remedy of Landlord) the same rights and remedies
in the event of the nonpayment of sums due under this section as
in the case of Default by Tenant in the payment of Base Rent.
All sums paid by Landlord and all penalties, interest and costs
in connection therewith, shall be due and payable by Tenant upon
written demand within ten (10) business days after such payment
by Landlord, together with interest thereon at the Default Rate
from such date to the date of payment.

39.     COMMON
AREAS.

     
For purposes hereof, the term “Common
Areas” shall mean (i) all portions of the Land other
than portions upon which the Building is situated, including
landscaped areas and the like, as the same may be modified from
time to time by Landlord; (ii) all loading docks,
corridors, lobbies, elevator cabs, stairs and other portions of
the Building that would customarily be made available to tenants
of the Building, as the same may be modified form time to time
by Landlord; (iii) any parking deck, parking structure, or
surface parking facility, and any connector from the Building
thereto; and (iv) any areas which are common areas for, on,
or utilized in general by tenants, owners and/or occupants of
the Plaza America complex, including both current and any future
phases thereof.

40.     SALES AND
AUCTIONS; SIGNAGE.

     
Tenant may not display or sell merchandise
outside the exterior walls and doorways of the Premises and may
not use such areas for storage. Tenant shall not conduct or
permit to be conducted any sale by auction in, upon or from the
Premises whether said auction be voluntary, involuntary,
pursuant to any assignment for the payment of creditors or
pursuant to any bankruptcy or other insolvency proceedings.

35

 

     
Except with respect to building directory signage
provided in Landlord’s standard directory format, Tenant
shall not display any sign, graphics, notice, picture, or
poster, or any advertising matter whatsoever, anywhere in or
about the Premises or the Building at places visible from
anywhere outside or at the entrance to the Premises without
first obtaining Landlord’s written consent thereto, which
consent shall not be unreasonably withheld, conditioned or
delayed. Tenant shall be provided with a pro rata portion (based
upon Tenant’s Share or other appropriate reasonable
criteria as established by Landlord from time to time) of space
within the Building lobby directory, within which to install
Building standard lobby directory identification, the cost of
which shall be at the expense of Landlord. In addition, subject
to Landlord’s approval thereof in accordance with the terms
and conditions of Exhibit C attached hereto, Tenant shall
be permitted to install one (1) exterior sign above the level of
the first floor windows of the Building, subject to compliance
with applicable code and to any comprehensive signage plan
applicable to the Building and the Plaza America project Tenant
shall be responsible to maintain any permitted signs and remove
the same at Lease termination. If Tenant shall fail to do so,
Landlord may do so at Tenant’s cost. Tenant shall be
responsible to Landlord for any damage caused by the
installation, use, maintenance or removal of any such signs. All
signage permitted by Landlord may be assigned or utilized by any
Landlord consented assignee or subtenant for the entire
Premises, subject to the prior written reasonable approval of
Landlord, and may not be changed in any manner without the prior
written approval of Landlord in each case, which approval shall
not be unreasonably withheld.

41.     ACCESS TO
ROOF.

     
41.1 Generally. Subject to
(i) compliance with all rules, regulations, statutes and
codes of any governmental authority having jurisdiction
thereover, (ii) compliance with any covenants, conditions
and restrictions applicable to the Building in effect as of the
date of this Lease, (iii) the rights of other tenant in the
Building and in the Project as the same exist as of the date
hereof, and (iv) subject to Landlord’s prior written
consent, which consent shall not be unreasonably withheld,
conditioned or delayed, Tenant shall have the non-exclusive
right of access to and the use of a to be designated portion of
the roof of the Building for the installation of communication
equipment (“Roof Use”); provided further that
(A) such installation and the Roof Use shall not void any
roof or other warranty applicable to the Building, (B) the
Roof Use shall be for Tenant’s business purposes only and
not for commercial resale, (C) all such installations shall
be located and screened in a manner acceptable to Landlord, and
(D) any such equipment shall be of a size acceptable to
Landlord in its reasonable discretion.

     
41.2 No Representations. Landlord has
not made any representations, warranties or promises pertaining
to the suitability of the Building’s rooftop for the Roof
Use, and Tenant accepts the rooftop in its “as is”
condition.

     
41.3 Compliance with Legal
Requirements. Prior to installation, Tenant will obtain any
and all licenses, approvals, permits, etc., necessary for the
installation, maintenance and use of any equipment installed
pursuant to this Section 41. Tenant’s Roof Use shall
not in any way conflict with any applicable law, statute,
ordinance or governmental rules or regulations now in force or
which may hereafter be enacted, or with the utilization of the
roof as granted to any other tenant. The Tenant will, at its
sole cost and expense, promptly comply with all laws, statutes,
ordinances, governmental rules or 

36

 

regulations, or requirements of any board of fire
insurance underwriters or other similar bodies now or hereafter
constituted relating to or affecting Tenant’s Roof Use.
Tenant shall indemnify and hold Landlord harmless from and
against any and all loss, cost (including reasonable
attorney’s fees incurred in defending Landlord), damage or
liability arising out of any violations of said laws, statutes,
ordinances, rules or regulations.

     
41.4 Additional Covenants.
Tenant’s Roof Use shall be exercised: (1) in such
manner as will not create any hazardous condition or interfere
with or impair the operation of the heating, ventilation, air
conditioning, plumbing, electrical, fire protection, life
safety, public utilities or other systems or facilities in the
Building (including any other communications equipment installed
by or with the permission of Landlord); (2) in such a
manner as will not directly or indirectly interfere with, delay,
restrict or impose any expense, work or obligation upon Landlord
in the use or operation of the Building; (3) at
Tenant’s sole cost and expense, including the cost of
repairing all damage to the Building and any personal injury
and/or property damage attributable to the installation,
inspection, adjustment, maintenance, removal or replacement of
any equipment or apparatus on the roof approved hereunder; and
(4) solely in the ordinary course of Tenant’s business
operations (and Tenant may not sublease, license or otherwise
permit third parties to establish communications transmission
facilities as part of Tenant’s Roof Use).

42.     ACCESS;
SECURITY.

     
Landlord shall install access control systems to
the Common Area entrances of the Building and Landlord shall
provide on or before the Commencement Date, ten (10) key
cards therefore, the cost of which shall be paid by Landlord.
Thereafter, Tenant may obtain from the applicable security
system vendor as many key cards as Tenant requires, at
Tenant’s sole expense. All monitoring costs attributable to
such system(s), if any, shall constitute Operating Costs for all
purposes hereof.

     
The Building access control system referenced
above is not intended to constitute security for Tenant’s
Premises. Tenant shall have the right, at its sole cost and
expense, to install a security system securing its Premises,
subject to and in accordance with the terms and conditions of
Exhibit C attached hereto. Tenant shall be solely
responsible for the repair and maintenance of any such security
system securing Tenant’s Premises. Further, Tenant shall be
solely responsible (irrespective of whether Tenant installs an
independent security system within the Premises) for securing
the Premises (and the automated teller machine intended to be
located therein) and Tenant’s business therein, and
Landlord shall have no obligation or liability therefor.

43.     AUTHORITY OF
LANDLORD AND TENANT.

     
Each of Landlord and Tenant shall furnish the
other with appropriate partnership and/or corporate resolutions,
as applicable, confirming that the individual executing this
Lease on behalf of each has been duly authorized to execute and
deliver this Lease on behalf of such party and that this Lease
is binding upon such party.

44.     NO ACCORD OR
SATISFACTION.

     
No payment by Tenant or receipt by Landlord of a
lesser amount than the Base Rent, Additional Rent and other sums
due hereunder shall be deemed to be other than on 

37

 

account of the earliest Base Rent or other sums
due, nor shall any endorsement or statement on any check or
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 of such Base Rent, Additional Rent or other sum and to
pursue any other remedy provided in this Lease.

45.     LEGAL
REQUIREMENTS.

     
Landlord shall, as part of Landlord’s Work
(but not as an Operating Cost), cause the Building to comply as
of the Commencement Date with all laws, orders, ordinances and
regulations of Federal and local authorities and with directions
of public rules, recommendations, requirements and regulations
of the Board of Fire Underwriters, Landlord’s insurance
companies and any other organization establishing insurance
rates in the geographical area where the Project is located and
all applicable building codes, to the extent the same are
applicable to the Building, respecting all matters of the
Project other than the use and occupancy of the Premises by
Tenant, including, without limitation, the accessibility
requirements of the Americans with Disabilities Act
(“ADA”), all zoning and other land use laws, and all
Environmental Laws.

46.     PARKING.

     
Tenant shall have the right (together with
Landlord and its agents, employees and contractors, and together
with the rights of other tenants in the Building and the
Project) to use, from the parking areas available to the Project
in the parking structure and surface parking on the Project and
Common Areas an amount of parking as set forth in
Section 1.1 hereof. Such parking right shall be
non-exclusive, and on an unreserved basis, and Tenant agrees not
to overburden the Building’s parking facilities. Upon the
Commencement Date, Landlord agrees that it shall
(i) designate a reasonable number of spaces as determined
by Landlord in good faith in the parking structure serving the
Premises as visitor parking having a three (3) hour maximum
parking limitation, and (ii) designate all of those spaces
adjacent to the Building as thirty (30) minute maximum stay for
retail visitor parking. Neither of the foregoing parking
allocations shall be for the exclusive use of Tenant. Landlord
agrees to use reasonable efforts to enforce all of the limited
stay visitor parking regulations. The foregoing shall in no
event limit Landlord’s ability to temporarily impose or
amend restrictions from time to time on portions of available
parking for the Building, or the Common Areas in general without
restricting Tenant’s rights and ability to conduct business
under this Lease, in accordance with the terms of this Lease and
the rules and regulations attached hereto.

47.     GENERAL
PROVISIONS.

     
47.1 Acceptance. This Lease shall
only become effective and binding upon full execution hereof by
Landlord and Tenant and delivery of a signed copy by Landlord to
Tenant.

     
47.2 Joint Obligation. If there be
more than one Tenant, the obligations hereunder imposed shall be
joint and several.

     
47.3 Marginal Headings, Etc. The
marginal headings, Table of Contents, lease summary sheet and
titles to the sections of this Lease are not a part of the Lease
and shall have no effect upon the construction or interpretation
of any part hereof.

38

 

     
47.4 Choice of Law. This Lease shall
be governed by and construed in accordance with the laws of the
Commonwealth of Virginia (without regard to the choice of law
and/or conflict of law principles applicable in such State).

     
47.5 Successors and Assigns. The
covenants and conditions herein contained, subject to the
provisions as to assignment, inure to and bind the heirs,
successors, executors, administrators and assigns of the parties
hereto.

     
47.6 Recordation. Except to the
extent otherwise required by law, neither Landlord nor Tenant
shall record this Lease or a memorandum hereof.

     
47.7 Quiet Possession. Upon
Tenant’s paying the Base Rent and Additional Rent reserved
hereunder and observing and performing all of the covenants,
conditions and provisions on Tenant’s part to be observed
and performed hereunder, Tenant shall have quiet possession and
enjoyment of the Premises for the Lease Term hereof, free from
any disturbance or molestation by Landlord, or anyone claiming
by, through or under Landlord, but in all events subject to all
the provisions of this Lease.

     
47.8 Inability to Perform: Force
Majeure. This Lease and the obligations of the Tenant
hereunder shall not be affected or impaired because either
Landlord or Tenant is unable to fulfill any of its obligations
hereunder or is delayed in doing so, to the extent such
inability or delay is caused by reason of war, civil unrest,
strike, labor troubles, unusually inclement weather,
governmental delays, inability to procure services or materials
despite reasonable efforts, third party delays, acts of God, or
any other cause(s) beyond the reasonable control of the Landlord
(which causes are referred to collectively herein as “Force
Majeure”.) Any time specified obligation of Landlord or
Tenant in this Lease shall be extended one day for each day of
delay suffered by Landlord or Tenant as a result of the
occurrence of any Force Majeure. The foregoing notwithstanding
in no event will an event of Force Majeure extend the time
within which Tenant or Landlord must perform any of its monetary
obligations under this Lease.

     
47.9 Partial Invalidity. Any
provision of this Lease which shall prove to be invalid, void,
or illegal shall in no way affect, impair or invalidate any
other provision hereof and such other provision(s) shall remain
in full force and effect.

     
47.10 Cumulative Remedies. No remedy
or election hereunder shall be deemed exclusive but shall,
whenever possible, be cumulative with all other remedies at law
or in equity.

     
47.11 Entire Agreement. This Lease
contains the entire agreement of the parties hereto and no
representations, inducements, promises or agreements, oral or
otherwise, between the parties, not embodied herein, shall be of
any force or effect.

     
47.12 Survival. All indemnities set
forth in this Lease shall survive the expiration or earlier
termination of this Lease.

     
47.13 Consents. If any provision of
this Lease subjects any action, inaction, activity or other
right or obligation of any party to the prior consent or
approval of the other, such consent shall not be unreasonably
withheld, conditioned or delayed unless otherwise specifically
provided herein.

39

 

     
47.14 Saving Clause. In the event
(but solely to the extent) the limitations on Landlord’s
liability set forth in Section 8.3 of this Lease would be
held to be unenforceable or void in the absence of a
modification holding the Landlord liable to Tenant or to another
person for injury, loss, damage or liability arising from
Landlord’s omission, fault, negligence or other misconduct
on or about the Premises, or other areas of the Building
appurtenant thereto or used in connection therewith and not
under Tenant’s exclusive control, then such provision shall
be deemed modified as and to the extent (but solely to the
extent) necessary to render such provision enforceable under
applicable law. The foregoing shall not affect the application
of Section 34 of this Lease to limit the assets available
for execution of any claim against Landlord.

     
47.15 Rule Against Perpetuities. In
order to ensure the compliance of this Lease with any rule
against perpetuities that may be in force in the state in which
the Premises are located, and without limiting or otherwise
affecting either Landlord’s or Tenant’s obligations
under this Lease, as stated in the other sections hereof, or
modifying any other termination rights which may be set forth
herein, Landlord and Tenant agree that, irrespective of the
reasons therefor (other than a Default by Tenant), in the event
Tenant fails to take possession of the Premises and commence
paying Base Rent and Additional Rent hereunder within ten
(10) years after the date of execution of this Lease, then
this Lease, and the obligations of the parties hereunder, shall
be deemed to be null and void and of no further force and
effect. Without affecting the specific timing requirements
otherwise applicable thereto under this Lease, any and all
options granted to Tenant under this Lease (including, without
limitation, expansion, renewal, right of first refusal, right of
first offer, and like options) must be exercised by Tenant, if
at all, during the term or Renewal Terms of this Lease.

48.     RULES AND
REGULATIONS.

     
Tenant agrees to comply with the Rules and
Regulations attached hereto as Exhibit D.

49.     ARBITRATION.

     
49.1 If arbitration is specifically agreed
upon hereunder as a dispute resolution procedure, the
arbitration shall be conducted as provided in this Section. All
proceedings shall be conducted according to the Commercial
Arbitration Rules of the American Arbitration Association,
except as hereinafter provided. No action at law or in equity in
connection with any such dispute shall be brought until
arbitration hereunder shall have been waived, either expressly
or pursuant to this Section. The judgment upon the award
rendered in any arbitration hereunder shall be final and binding
on both parties hereto and may be entered in any court having
jurisdiction thereof. During any arbitration proceeding pursuant
to this Section, the parties shall continue to perform and
discharge all of their respective obligations under this Lease,
except as otherwise provided in this Lease.

     
49.2 All disputes that are required to be
arbitrated in accordance with this Lease shall be raised by
notice to the other party, which notice shall state with
particularity the nature of the dispute and the demand for
relief, making specific reference by article number and title of
the provisions of this Lease alleged to have given rise to the
dispute. 

40

 

The notice shall also refer to this Section and
shall state whether or not the party giving the notice demands
arbitration under this Section.

     
49.3 Within thirty (30) days of any
demand for arbitration, each of Tenant and Landlord shall
appoint one (1) arbitrator, and within ten (10) days of
their appointment, the two (2) arbitrators thus selected shall
jointly select a third (3rd) arbitrator. All arbitrators shall
have at least ten (10) years’ experience in commercial
real estate matters and, in particular, the subject matter of
the dispute, to act as arbitrator hereunder. If either party
fails to select an arbitrator within the initial thirty
(30) day period, or if the two (2) arbitrators are unable
to agree upon a third (3rd) arbitrator, then, upon the request
of either party, the remaining arbitrator(s) shall be appointed
by the American Arbitration Association. The arbitration
proceedings shall take place a mutually acceptable location in
the Washington, D.C./ Baltimore metropolitan areas.

     
49.4 The right of Landlord and Tenant to
submit a dispute to arbitration is limited to issues
specifically agreed in this Lease to be submitted to
arbitration, and specifically does not apply to any remedial
action undertaken by Landlord pursuant to the provisions of
Section 24 hereof. When resolving any dispute, the
arbitrator shall apply the pertinent provisions of this Lease
without departure therefrom in any respect. The arbitrator shall
not have the power to change any of the provisions of this
Lease, but this Section shall not prevent in any appropriate
case the interpretation, construction and determination by the
arbitrator of the applicable provisions of this Lease to the
extent necessary in applying the same to the matters to be
determined by arbitration.

     
49.5 Without limitation, any dispute between
Landlord and Tenant regarding the application, interpretation or
effect of the provisions of Exhibit C to particular
factual circumstances, including without limitation any dispute
regarding approval of plans and specifications for
Landlord’s Work, compliance of construction with the
approved plans and specifications therefor (or as otherwise
required by this Lease), Substantial Completion of all or any
part of Landlord’s Work, completion of punch list items and
Landlord’s calculation of the total Costs, shall be subject
to arbitration pursuant to this Section 49 if Landlord and
Tenant cannot resolve such dispute voluntarily.

50.     WAIVER OF
JURY TRIAL.

     
Landlord and Tenant hereby waive trail by jury
in any action, proceeding or counterclaim brought by either of
them against the other on all matters arising out of this Lease,
or the use and occupancy of the Premises. If Landlord commences
any summary proceeding for non-payment of Base Rent or
Additional Rent, Tenant will not interpose (and waives the right
to interpose) any non-mandatory counterclaim in any such
proceeding.

51.     RENEWAL
TERM.

     
51.1 Provided Tenant is not in Default of
this Lease at the time its rights hereunder are to be exercised,
Tenant shall have the option (each, a “Renewal
Option”) to extend the Lease Term for two (2) periods of
one hundred twenty (120) months each (each referred to as a
“Renewal Term”) provided Tenant gives written notice
to Landlord of its election to exercise such Renewal Option (the
“Renewal Notice”) not more than eighteen (18) nor less
than twelve (12) months prior to the expiration of the last
day of 

41

 

the initial Lease Term or, as applicable, the
initial Renewal Term. Time is of the essence in this
Section 51.

     
51.2 All terms and conditions of this Lease,
including without limitation, all provisions governing the
payment of Additional Rent, shall remain in full force and
effect during the Renewal Term(s), except the Base Rent shall be
as set forth in this Section 51.

     
51.3 The Base Rent payable upon the
commencement of the Renewal Term shall equal one hundred percent
(100%) of the then prevailing market rental rate (including base
rental rate and annual escalation rate) applicable to renewal
terms with respect to comparable space in comparable buildings
in the vicinity of the Project, (the “Fair Market
Rate” or “FMR”) at the time of the commencement
of the applicable Renewal Term, determined based upon then
existing renewal market conditions applicable to the leasing of
comparable space in comparable buildings in the vicinity of the
Project (taking into consideration use, location, quality, age
and location of the applicable building and the definition of
net rentable area as well as then market lease concessions, and
improvement allowances). Further, the Fair Market Rate shall be
determined on a net basis, with Tenant remaining responsible for
all Additional Rent as set forth herein. Landlord and Tenant
shall negotiate in good faith and in accordance with the
procedure set forth in Section 51.4, below, to determine
the Fair Market Rate which will be applicable during the Renewal
Term, with the goal of concluding such negotiation or triggering
a determination of the FMR using a three-broker method (as
described in Section 51.5, below) within not more than
sixty (60) days after the date of Landlord’s receipt
of the Renewal Notice.

     
51.4. Within ten (10) days after
Landlord receives Tenant’s Renewal Notice exercising either
of the Renewal Options referenced above, Landlord will provide
Tenant with a written notice (the “FMR Notice”)
indicating the base rental rate and annual escalation rate which
Landlord in good faith believes represents the then current FMR
for the Premises. If Tenant is in agreement with the base rental
rate and annual escalation rate stated in the FMR Notice, Tenant
shall so notify Landlord within ten (10) business days after its
receipt thereof, in which case such base rental rate and annual
escalation rate shall constitute the FMR for such Renewal Term
within the meaning of this Section 51. If Tenant believes in
good faith that the base rental rate and annual escalation rate
stated by Landlord in the FMR Notice are in excess of actual FMR
for the Premises, Tenant shall so notify Landlord in writing
prior to the end of the ten (10) business day period after
Tenant received Landlord’s FMR Notice, stating in its
response (hereinafter referred to as “Tenant’s
Counterproposal”) the base rental rate and annual
escalation rate which Tenant in good faith believes represents
the then current FMR for the Premises. If Tenant does provide
Tenant’s Counterproposal to Landlord in a timely fashion,
and Landlord agrees that the base rental rate and annual
escalation rate stated in Tenant’s Counterproposal
represent the then current FMR, Landlord shall notify Tenant in
writing within ten (10) days after its receipt thereof, in
which case such base rental rate and annual escalation rate
shall constitute the FMR for such Renewal Term within the
meaning of this Section 51. If either the Landlord or the
Tenant fails to respond to the others proposal within the time
period provided above, or rejects the counterproposal of the
other party, then the parties agree to submit the issue of what
constitutes the appropriate FMR for the Premises for the Renewal
Term to determination using a “three broker method” as
described in Section 51.5 below.

42

 

     
51.5 If the parties submit the issue of what
constitutes the appropriate FMR for the Premises for the Renewal
Term to determination using a “three broker method”,
then the Base Rent and annual escalations applicable during the
Renewal Term shall be equal to the FMR and annual escalation
rates determined by a board of three (3) licensed real
estate brokers, one of whom shall be named by Landlord, one by
Tenant, and the two so appointed shall select the third. Each
member of the board of brokers shall be licensed in the
Commonwealth of Virginia as a real estate broker, with a
substantial familiarity in the field of commercial leasing in
Reston, Virginia having no less than ten (10) years
experience in such field, and recognized as ethical and
reputable within the field. Landlord and Tenant agree to make
their appointments within five (5) business days after the
earlier to occur of (i) the expiration of the ten
(10) day period after Landlord’s receipt of
Tenant’s Counterproposal, or (ii) the date Landlord
notifies Tenant of its rejection of Tenant’s
Counterproposal. The two (2) brokers selected by Landlord
and Tenant shall promptly select a third broker within ten
(10) days after they both have been appointed, and each
broker, within ten (10) days after the third broker is
selected, shall submit his or her determination of the said FMR
and escalations (taking into account the provisions of
Section 51.3 hereof). If either of the parties fail to
select a broker within the aforesaid time periods, the broker
selected by the other party shall select the other two
(2) brokers to participate in the determination, each of
which shall meet the selection criteria set forth above, and be
affiliated with a different company from the first broker and
from each other; and if the brokers selected by Landlord and
Tenant are unable to reach agreement on the identity of the
third broker within the applicable ten (10) day period,
then the third broker shall be designated (in compliance with
the applicable criteria set forth above) by an agent of the
Virginia Board of Realtors in office at such time. The FMR shall
be the average of amount determined by the two brokers whose
determinations are closest in amount to each other (or if two
brokers reach an identical determination, the determination of
such two brokers), provided that if the two (2) most
proximate determinations of FMR differ by more than five percent
(5%), then the determination of FMR by such board of three
brokers shall be null and void, and Landlord and Tenant shall,
within five (5) business days thereafter, appoint a new board of
three different real estate brokers meeting the above-stated
criteria, who shall convene in accordance with the procedures
and time frames set forth above in order to render a new
determination, as if the first determination had never taken
place. After the Fair Market Rent has been established, the
brokers shall immediately notify the parties in writing, and
such determination shall be conclusive and binding upon the
parties. Landlord and Tenant shall each pay the fee of the
broker selected by it, and they shall equally share the payment
of the fee of the third broker.

		
	52.	
    LEASE CONTINGENCY.
    

     
This Lease is contingent upon Tenant obtaining
approval from the Virginia State Corporation
Commission — Bureau of Financial Institutions, for the
operation of a retail branch banking facility at and from the
Premises. Tenant agrees to promptly apply for (and in any event
within ten days after the date hereof) and diligently pursue in
good faith such regulatory approval, and to keep Landlord
generally apprised of the status thereof. In the event tenant
has not received such approval within ninety (90) days
after the date hereof, this Lease shall terminate and neither
party shall have any further right or obligation hereunder of
any nature whatsoever.

43

 

     
IN WITNESS WHEREOF, Landlord and Tenant have
executed this Deed of Lease, or have caused this Deed of Lease
to be executed on their respective behalves by their duly
authorized officers, as of the day and year first above written.

		
	 	
    LANDLORD:
	 
	 	
    PLAZA AMERICA OFFICE DEVELOPMENT II,
    LLC

			
	 	By: 	
    PLAZA OFFICE LIMITED PARTNERSHIP
    
	 
	 	By: 	
    Plaza America Development Corporation, Its
    general partner
    

		
	 	
    By: /s/ Chaim Zabludowicz
    
	 	
    

	 	
    Name: Chaim Zabludowicz
    
	 	
    Title: Chairman & Chief Executive
    Officer
    
	 
	 	
    TENANT:
	 
	 	
    ALLIANCE BANK CORPORATION

			
	 		
    By: /s/ Thomas A. Young, Jr.       
    1/22/02
    

		
	 	
    

	 	
    Name: Thomas A. Young, Jr.    

    
	 	
    Title: President & CEO    

    

44

 

EXHIBIT A

45

 

 

EXHIBIT B

46

 

 

EXHIBIT “C”

Construction Exhibit

to

DEED OF LEASE

by and between

PLAZA AMERICA OFFICE DEVELOPMENT II,
LLC

(“Landlord”)

and

ALLIANCE BANK CORPORATION

(“Tenant”)

     
1.     Base Building
Improvements. Landlord agrees, at Landlord’s sole
expense, to construct the interior and exterior Base Building
improvements and site improvements described in
Schedule C-1 attached hereto and made a part hereof
(collectively, the “Base Building Improvements”, and
Landlord’s construction thereof, the “Base Building
Work”). The Base Building Work and the Landlord’s TI
Work, described below, are collectively referred to as the
“Landlord’s Work.”

     
2.     Tenant’s
Work.

		
	 	     
    (A) Tenant shall be responsible for all
    work, construction, installations or improvements in or to the
    Premises which is not designated as Landlord’s Work
    (including but not limited to the installation of all fixtures,
    furniture, equipment and other installations), such work to be
    hereinafter be referred to as “Tenant’s Work,”
    and shall be at Tenant’s sole cost and expense, subject to
    the Construction Allowance. Prior to commencing Tenant’s
    Work, Tenant shall submit drawings and specifications describing
    Tenant’s Work to Landlord, showing all aspects of such work
    in reasonable detail, to Landlord for Landlord’s review and
    approval, not to be unreasonably withheld, conditioned or
    delayed in excess of ten (10) business days beyond the date
    of request, accompanied by all supporting drawings and
    specifications. Tenant’s Work shall be treated as an
    “alteration” or “improvement” under the
    Lease, and shall be subject to the terms of (and approval
    procedures described in) the Lease with regard to alterations.
    In connection with submission of drawings and specifications,
    Tenant agrees that the locations of Tenant’s floor
    penetrations, if any, shall be subject to field verification by
    x-ray to be performed by ECS Limited and that any drillings for
    such penetrations shall be coordinated with the Building’s
    structural engineer for approval and supervision.
    
	 
	 	     
    (B) Tenant shall be responsible for and
    shall pay when due all costs associated with the preparation of
    plans and the performance of Tenant’s Work incurred in
    accordance with this Exhibit C.
    
	 
	 	     
    (C) Tenant shall bear financial
    responsibility for all hard and soft costs associated with the
    performance of Tenant’s Work including (i) the
    architectural, engineering 

    

 

		
	 	
    and professional fees and blueprinting costs in
    connection with preparation of Drawings and Specifications, and
    Approved Plans, as required hereunder and any permitting costs,
    inspection fees and other governmental charges associated with
    Tenant’s Work (the “Soft Costs”), and
    (ii) all costs of labor and materials for the installation
    of Tenant’s Work (the “Hard Costs”). The total
    Soft Costs and Hard Costs of Tenant’s Work, including any
    sums due by virtue of approved change orders, is herein referred
    to collectively as the “Costs”. Landlord shall
    reimburse the Tenant for the Costs (herein referred to as the
    “Construction Allowance”) in an amount equal to Thirty
    Nine and 00/100 Dollars ($39.00) multiplied by the total number
    of rentable square feet in the Premises to be applied against
    Hard Costs to construct Tenant’s Work within the Premises,
    and Soft Costs. In order to defer Tenant’s relocation
    expenses and Soft Costs, Tenant shall be entitled to receive a
    portion of the Construction Allowance to be applied against
    Tenant’s actual moving expenses (herein referred to as the
    “Moving Expenses”) and Soft Costs; provided that in no
    event shall Moving Expenses and Soft Costs funded from the
    Construction Allowance exceed $5.00 per rentable square foot of
    the Premises. Landlord and Tenant agree that the Construction
    Allowance shall paid upon substantial completion of
    Tenant’s Work. Tenant acknowledges and agrees that Landlord
    shall have no obligation to pay the Construction Allowance in
    the event that Tenant’s Work is not substantially complete
    on or before nine (9) months following the Commencement Date
    (taking into account any permitting delays which may be caused
    by Fairfax County and which delays are outside of Tenant’s
    reasonable control and of which tenant promptly gave Landlord
    notice). Upon completion of Tenant’s Work, Tenant shall
    submit to Landlord a payment request, seeking disbursement to
    Tenant or Tenant’s general contractor (or any other Tenant
    designated vendor providing labor or materials incorporated
    within Tenant’s Work for which funding of the Construction
    Allowance is permitted herein) of payment, accompanied by all of
    the following items, as indicated:
    

		
	 	     
    (i) a
    certificate of Tenant’s architect to Landlord certifying
    that Tenant’s Work has been substantially completed in
    accordance with the Approved Plans, and that all punch list
    items noted by the parties have also been fully completed.
    
	 
	 	     
    (ii) a copy of
    the final certificate of use and occupancy (or its equivalent)
    issued to Tenant by the applicable governmental authority with
    respect to the Premises.
    
	 
	 	     
    (iii) a copy of
    complete as-built plans and specifications for Tenant’s
    Work.
    
	 
	 	     
    (iv) a duly
    executed final release of liens executed by Tenant’s
    general contractor and any and all subcontractors and/or
    materialmen supplying labor and/or materials in connection with
    Tenant’s Work, in form and substance satisfactory to
    Landlord, acknowledging payment in full for such labor and/or
    materials, and fully and forever waiving any and all statutory
    and/or common law liens which might otherwise be asserted by
    them against the Premises (or any portion thereof) or the
    Building in connection with Tenant’s Work.
    

		
	 	
         Landlord shall have no obligation to pay the
    Construction Allowance to Tenant until forty five (45) days
    after Landlord has received all of the items listed in
    clauses (i)-(iv) above (to the extent not previously
    supplied to Landlord).
    

 

     
3.     Permits.

     
Tenant shall be responsible for applying for and
obtaining all permits required for Tenant to perform
Tenant’s Work and to operate within the Premises, and for
obtaining any final fire inspection approval. Landlord agrees to
execute and join in such applications if so required by
applicable authorities.

     
4.     First-Class
Lien-Free Completion. Tenant shall only use new, first-class
materials in connection with Tenant’s Work. All such work
shall be paid for in full and in a timely fashion by Tenant, and
shall be performed in a lien-free, first-class, and good and
workmanlike manner, and in accordance with applicable codes and
requirements. Tenant and Tenant’s architect shall be
responsible for the compliance of the Premises with the
Americans With Disabilities Act (ADA) and other applicable legal
requirements.

     
5.     Bonding.
All contractors and subcontractors performing work on behalf of
Tenant within the Premises prior to Tenants initial occupancy of
the Premises, shall be subject to Landlord’s reasonable
approval, shall be licensed to do business in the Commonwealth
of Virginia, and, at Landlords request, the General Contractor
shall obtain for Landlords benefit, a performance bond serving
as a surety to Landlord for such contractors performance of
Tenants Work, the cost of which shall be paid by Tenant.

     
6.     Delivery &
Acceptance of Possession. Within two (2) business days after
Landlord delivers possession of the Premises to Tenant, Tenant
(and Tenant’s Architect if requested by Tenant) and a
representative of Landlord shall jointly inspect the Premises,
and Tenant shall be deemed to have accepted the Premises in
“AS IS, WHERE IS” condition effective on the date of
such joint inspection. Notwithstanding the foregoing, to the
extent that during the course of performing Tenant’s Work,
latent defects to the Premises or the Building are discovered,
which work, pursuant to the terms of the Lease, was the
responsibility of the Landlord, the Landlord shall promptly
repair the same. To the extent that Landlord’s repair of
said latent defects causes a delay to the completion of
Tenant’s Work, the Rent Commencement Date shall be extended
accordingly.

     
7.     Provisions
Regarding Tenant’s Work. The following shall apply with
respect to Tenant’s Work, and any subsequent alterations to
the Premises (hereafter, “alterations”) by Tenant.

		
	 	     
    (A) First-Class Lien-Free Completion.
    Tenant shall only use new, first-class materials in connection
    with Tenant’s Work and alterations, and, subject to the
    Construction Allowance, same shall be paid for in full and in a
    timely fashion by Tenant, and shall be performed in a lien-free,
    first-class, and good and workmanlike manner, and in accordance
    with applicable codes and requirements. Tenant’s Work and
    alterations shall comply with the requirements of the ADA.
    
	 
	 	     
    (B) (1) Tenant shall secure, pay for,
    and maintain, or cause its contractors and subcontractors to
    secure, pay for, and maintain, during the continuance of
    construction and 

    

 

		
	 	
    fixturing work within the Premises, all of the
    insurance policies required in the amounts as set forth herein,
    together with such insurance as may from time to time be
    required by city, county, state or federal laws, codes,
    regulations or authorities.
    

		
	 	     
    (2) Tenant’s Work and alterations may
    not commence, nor may Tenant permit its contractors and
    subcontractors to commence any work, until all required
    insurance has been obtained, and, if Landlord requests, until
    Tenant’s certificates of such insurance have been delivered
    to Landlord. Tenant’s insurance policies shall name the
    Landlord, Landlord’s mortgagee(s), Landlord’s
    management company as additional insureds. Tenant’s
    certificates of insurance shall provide that no change or
    cancellation of such insurance coverage shall be undertaken
    without thirty (30) days’ prior written notice to
    Landlord.
    
	 
	 	     
    (3) Landlord shall have the right to require
    Tenant, and Tenant shall have the duty, to stop work in the
    Premises immediately if any of the coverage Tenant is required
    to carry herein lapses during the course of the work, in which
    event Tenant’s Work (or alterations) may not be resumed
    until the required insurance is obtained and satisfactory
    evidence of same is provided to Landlord.
    
	 
	 	     
    (4) In the event Tenant employs a contractor
    or subcontractor to perform all or part of Tenant’s Work
    and/or alterations, Tenant shall purchase, or cause its
    contractor to carry, General Contractor’s and
    Subcontractor’s Required Minimum Coverages and Limits of
    Liability as follows (the insurance required under this
    Exhibit C shall be in addition to any and all insurance
    required to be procured by Tenant pursuant to the terms of the
    Lease):
    

		
	 	     
    (i) Workers’ Compensation and
    Employers’ Liability Insurance, as required by state law,
    and any insurance required by any Employee Benefit Act or
    similar statute applicable where the work is to be performed, as
    will protect the contractor and subcontractors from any and all
    liability under the aforementioned act(s) or similar statute.
    
	 
	 	     
    (ii) Comprehensive General Liability
    Insurance (including Contractor’s Protective Liability) in
    an amount not less than $1,000,000 per occurrence whether
    involving personal injury liability (or death resulting
    therefrom) or property damage liability or a combination thereof
    (combined single limit coverage) with a minimum aggregate limit
    of $2,000,000. Such insurance shall insure Tenant’s general
    contractor against any and all claims for personal injury,
    death, and damage to the property of others arising from its
    operations under its contract, whether such operations are
    performed by Tenant’s contractors, subcontractors, or
    sub-subcontractors, or by anyone directly or indirectly employed
    by any of them.
    
	 
	 	     
    (iii) Comprehensive Automotive Liability
    Insurance, for the ownership, maintenance, or operation of any
    automotive equipment, whether owned, leased, or otherwise held,
    including employer’s non-ownership and hired car liability
    endorsements, in an amount not less than $500,000.00 per
    occurrence and $1,000,000 aggregate, combined single limit
    bodily injury and property damage liability.
    

 

		
	 	     
    (iv) Builder’s Risk insurance in form
    and amount reasonably satisfactory to Landlord based upon the
    scope of work.
    

		
	 	     
    (C) Tenant agrees that Landlord will have
    the right to inspect the performance of Tenant’s Work or
    alterations by Tenant’s contractor(s) and subcontractor(s),
    through Landlord’s construction manager, and Tenant agrees
    to cooperate with Landlord to facilitate such inspection,
    including without limitation: (a) notifying Landlord prior
    to any and all government inspections of Tenant’s Work so
    that Landlord’s construction manager can be present
    therefor; and (b) permitting Landlord’s construction
    manager free and clear access to the Premises during the
    construction period, as necessary to perform such inspections.
    Landlord shall use reasonable efforts not to interfere with the
    performance of Tenant’s Work during the course of any
    inspections by Landlord or Landlord’s construction manager
    pursuant to this Paragraph 7(C).
    
	 
	 	     
    (D) In the performance of Tenant’s Work
    or alterations in accordance with this Lease, Tenant shall cause
    its contractor to use reasonable and diligent efforts not to
    interfere with ongoing operations in the Building and to work in
    harmony with Landlord’s contractors. Without limiting the
    foregoing, Tenant agrees to cause its contractor to use
    reasonable and diligent efforts to limit its construction
    activities to the portion of the Premises being constructed. Any
    delay in the completion of Landlord’s Work (including delay
    in the completion of the Base Building Improvements or the Site
    Improvements) caused solely and directly by Tenant or its
    contractors, shall be Tenant’s responsibility and shall
    constitute a Tenant Delay hereunder.
    
	 
	 	     
    (E) Tenant’s contractor shall be
    responsible for all utility costs associated with the
    performance of Tenant’s Work or alterations and shall
    either supply its own electricity and other utilities, or shall
    reimburse Landlord for all utility consumption associated with
    such work at Landlord’s actual cost therefor. Tenant’s
    contractor shall keep all construction areas reasonably clean
    and free of trash and debris, shall police the activities of its
    contractors, subcontractors and their respective employees with
    regard to keeping the Building and land clean, and shall
    otherwise comply with any other reasonable rules and regulations
    established by Landlord with regard to construction activities
    within the Building. Tenant’s construction contract shall
    indemnify Tenant and Landlord from damages, losses and expenses
    associated with the acts and omissions of Tenant’s
    contractor, its agents, employees and subcontractors. Tenant
    shall provide prior notice to Landlord of, and coordinate with
    Landlord and its contractor, the delivery of any materials,
    furniture or equipment to the Premises.
    
	 
	 	     
    (F) Tenant shall provide to Landlord copies
    of all applications for permits, copies of all governmental
    inspection reports and/or certificates, and any and all notices
    or violations communicated in writing to Tenant or its
    contractors by applicable governmental authorities, promptly
    upon receipt and/or submission thereof, as the case may be.
    Tenant agrees to comply (or to cause its contractors to comply)
    with all applicable federal, state and local laws, regulations
    and ordinances in the performance of Tenant’s 

    

 

		
	 	
    Work or alterations, and to promptly rectify any
    violations of such laws caused by the acts or omission of
    Tenant, its employees, agents and/or contractors, and Tenant
    shall be responsible for any non-compliance by Tenant or its
    agents, employees and contractors. In the event (i) of any
    violation of this Exhibit C by Tenant, or
    (ii) the construction of any improvements in the Premises
    by Tenant which are not within the scope, in any material
    respect, of the Approved Plans (or other Landlord-approved
    plans), Landlord shall have the right to cause Tenant and
    Tenant’s contractor to stop Tenant’s Work or
    alterations and to seek any and all appropriate legal and
    equitable relief in order to enforce the provisions of this
    Exhibit C.
    

     
8.     Remedies.

		
	 	     
    (A) Tenant agrees to use reasonable and
    diligent efforts to achieve Substantial Completion of
    Tenant’s Work in as timely a manner as possible.
    
	 
	 	     
    (B) Each party shall use all reasonable and
    diligent efforts to perform the responsibilities and work
    required to be performed by it hereunder without unreasonable
    delay, and to avoid and minimize the duration of any delays for
    which such party is responsible hereunder; and each party agrees
    to use commercially reasonable efforts (but without material
    out-of-pocket expense) to mitigate the damages and adverse
    effect of any delay for which the other party is responsible.
    

 

EXHIBIT C1

Plaza America Building 4
Improvements

Alliance Bank First Floor

Except as otherwise noted, Landlord, at its sole
cost, shall construct and deliver to Tenant the following Base
Building improvements (the “Landlord’s
Improvements”).

Upon acceptance of the Premises Tenant
acknowledges it has inspected the Landlord’s work and
verified that it is acceptable for installation of Tenant’s
work.

	 	 	 
			
	
    Concrete Floor:
    	 	
    Smooth and level to within 3/8” in 10 lineal
    feet ready for installation of Tenant’s glue down carpeting.
The Base Building is designed to accommodate a
    live load of 80 lbs/sf and a partition load of
    20 lbs/sf.
    
	 
	 	 	
    Areas identified by Tenant requiring
    reinforcement due to Tenant’s excess or concentrated loads
    may be reinforced by Landlord at Tenant’s expense.
    
	 
	
    Perimeter:
    	 	
    Storefront entrances Double (3’x7”)
    located per the base building plans and a single rear door to
    the exterior. Additions deletions or modifications to entrances
    and storefront shall be at Tenant’s expense subject to
    Landlord approval.
    
	 
	 	 	
    The inside face of exterior perimeter walls,
    and/or bulkheads (non-glazed area) and columns shall be framed
    and finished with 1/2” gyp board, insulated, spackled,
    finished, taped and sanded from slab to finish ceiling height
    (9’-0”) ready to paint.
    
	 
	
    Demising Walls:
    	 	
    Demising walls shall be constructed of
    3 5/8” metal studs 24” on center with sound batts
    between 1/2” gyp board, spackled, finished, taped and
    sanded from slab to finish ceiling height (nominal
    11’-0”) ready to paint.
    
	 
	
    HVAC:
    	 	
    Condenser water tapped fitting located in the
    building core per the Base Building drawings, Tenant may utilize
    up to one (1) ton of condenser water per 300 useable square feet
    of space.
    
	 
	
    Plumbing
    	 	
    Tenant may utilize the wet stacks located per the
    base building plans for connection of plumbing related to
    galleys or miscellaneous fixtures.
    
	 
	
    Fire Protection:
    	 	
    Sprinkler loop installed with heads turned up one
    approximately (1) per 225 square feet.

    

    Voice evacuation system located per the base building plans and
    all core and public area life safety equipment fully installed
    per code. The fire alarm system has sufficient capacity to
    accommodate typical additional tenant devices.
    
	 
	
    Electrical:
    	 	
    Tenant will obtain electrical service from the
    trough located in the main electrical room.
    
	 
	 	 	
    Landlord shall provide a finished Lobby on the
    first floor of the building in accordance
    

 

	 	 	 
			
	 	 	
    with the Base Building plans and specifications.
    Toilet rooms are located per the base building plans.
    
	 
	
    Miscellaneous:
    	 	
    The Landlord will provide Base Building
    drawings applicable to Tenant’s space, including
    architectural, structural and MEP, showing the locations of Base
    Building systems, risers and taps. Tenant shall field verify all
    existing conditions as required to produce its plans and
    specifications.
    

 

EXHIBIT D

Rules and Regulations

     
1.     The sidewalks,
halls, passages, exits, entrances, elevators and stairways of
the Building shall not be obstructed by Tenant, its agents or
employees or used by any of them for any purpose other than for
ingress to and egress from the Premises. The halls, passages,
exits, entrances, elevators, and stairways are not for the
general public, and Landlord shall in all cases retain the right
to control and prevent access thereto of all persons whose
presence in the judgment of Landlord would be prejudicial to the
safety, character, reputation and interests of the Building and
its tenants, provided that nothing herein contained shall be
construed to prevent such access to persons with whom any tenant
normally deals in the ordinary course of its business, unless
such persons are engaged in illegal activities.

     
2.     Except as set
forth in the Lease, no sign, placard, picture, name,
advertisement or notice, visible from the exterior of the
Premises shall be inscribed, painted, affixed or otherwise
displayed by Tenant on any part of the Building without the
prior written consent of Landlord. Landlord will adopt and
furnish to Tenant general guidelines relating to signs inside
the Building on the office floors. Tenant agrees to conform to
such guidelines, but may request approval of Landlord for
modifications, which approval will not be unreasonably withheld.
All approved signs or lettering on doors shall be printed,
painted, affixed or inscribed at the expense of Tenant by a
person approved by Landlord, which approval will not be
unreasonably withheld. Material visible from outside the
Building will not be permitted.

     
3.     Tenant shall not
allow a fire or bankruptcy sale or any auction to be held on the
Premises or allow the Premises to be used for the storage of
merchandise held for sale to the general public.

     
4.     Tenant shall not
use or permit the use of the Premises for lodging. No cooking
shall be done or permitted by Tenant on the Premises, except the
use of Underwriters’ Laboratory approved microwaves,
toasters and equipment for brewing coffee, tea, hot chocolate
and similar beverages or other equipment or appliances shown on
the Drawings and Specifications and approved by the Landlord
shall be permitted, provided that such use is in accordance with
all applicable federal, state and city laws, codes ordinances,
rules and regulations.

     
5.     Tenant shall not
employ any person or persons other than the janitor of Landlord
for the purpose of cleaning the Premises, unless otherwise
agreed to by Landlord in writing, such consent shall not be
unreasonably withheld, conditioned or delayed. Except with the
written consent of Landlord, no person or persons other than
those approved by Landlord shall be permitted to enter the
Building for the purpose of cleaning the Premises. Tenant shall
not cause or permit any unnecessary labor by reason of
carelessness or indifference in the preservation of good order
and cleanliness, on the part of Tenant, its agents, employees or
contractors. Janitor services will not be furnished on nights
when rooms are occupied after 9:30 p.m. unless, by
agreement in writing, such service is extended to a later hour
for specifically designated rooms.

D-56

 

     
6.     Unless specified
otherwise in the Lease, Landlord will furnish Tenant free of
charge with two keys to each door lock in the Premises. Landlord
may make a reasonable charge for additional keys. Tenant shall
not alter any lock or install a new or additional lock or any
bolt on any door of the Premises without the prior written
consent of Landlord, and Tenant shall in each such case shall
furnish Landlord with a key for any such lock, exclusive of
Tenant’s vaults and safes, provided that such keys shall be
safeguarded and protected by Landlord. Tenant, upon the
expiration or termination of its tenancy, shall deliver to
Landlord all keys to doors in the Building which shall have been
furnished to the Tenant.

     
7.     Landlord shall
designate how all office equipment, furniture, appliances and
other large objects or property (“Equipment”) shall be
moved in and/or out of the Building. The persons employed to
move any Equipment in or out of the Building must be reasonably
acceptable to Landlord. Landlord will not be responsible for
loss or damage to any such Equipment from any cause, and all
damage done to the Building by moving or maintaining such
Equipment shall be paid at the expense of Tenant.

     
8.     Tenant shall not
permit, use or keep in the Premises or the Building any
kerosene, gasoline or inflammable or combustible fluid or
material other than limited quantities thereof reasonably
necessary for the operation and maintenance of office equipment
or for other general office uses, or, without Landlord’s
prior written approval, use any method of heating or air
conditioning other than that supplied by Landlord. Tenant shall
not use or keep or permit to be used or kept any foul obnoxious
gas or substance in the Premises, or permit or suffer the
Premises to be occupied or used in a manner offensive or
objectionable to Landlord or to other occupants of the Building
by reason of noise, odors, or vibrations, or interfere in any
way with other Building tenants or those having business therein.

     
9.     Landlord reserves
the right to exclude from the Building between the hours of
6:00 p.m. and 7:00 a.m. and at all hours on Sundays,
legal holidays and on Saturdays any person who, in
Landlord’s sole opinion, has no legitimate business in the
Building (provided that such shall not in any event preclude
Tenant’s employees from entering the Premises provided they
are identified as such). Landlord shall in no case be liable for
damages for any error with regard to the admission to or
exclusion from the Building of any person. In the case of
invasion, mob, riot, public excitement or other circumstances
rendering such action advisable in Landlord’s opinion,
Landlord reserves the right to prevent access to the Building
during the continuance of the same by such action as Landlord
may deem appropriate, including closing and/or locking of doors.

     
10.     The directory of
the Building will be provided for the display of the name and
location of Tenants. Any additional name which Tenant shall
desire to place upon said directory must first be approved by
Landlord in writing and, if so approved, a charge will be made
based upon Landlord’s actual cost therefor.

     
11.     No curtains,
draperies, blinds, shutters, shades, screens or other coverings,
hangings or decorations shall be attached to, hung or placed in,
or used in connection with any window of the Building without
the prior written consent of Landlord, and such items shall be
installed as instructed by Landlord.

     
12.     Tenant shall use
good faith efforts to ensure that the doors of the Premises are
closed and locked, and that all water faucets, water apparatus
and utilities are shut off before 

D-57

 

Tenant or Tenant’s employees leave the
Premises at the end of the day, so as to prevent waste or
damage, and for any default or carelessness in this regard
Tenant shall be responsible for any and all injuries sustained
by other tenants or occupants of the Building and/or Landlord.
All tenants shall use good faith efforts to keep the doors to
the Building corridors closed at all times except for ingress
and egress.

     
13.     All Building
toilet rooms, toilets, urinals, wash basins and other apparatus
shall not be used for any purpose other than that for which they
were constructed, no foreign substance of any kind whatsoever
shall be thrown therein. The expense of any breakage, stoppage
or damage resulting from the violation of this rule shall be
borne by that Building tenant who, or whose agents, employees or
invitees, shall have caused it.

     
14.     Except with the
prior written consent of Landlord, Tenant shall not sell, nor
shall Tenant permit the sale at retail, of newspapers,
magazines, periodicals, theater tickets or any other goods or
merchandise to the general public in or on the Premises, nor
shall Tenant carry on, or permit or allow any employee or other
person to carry on, the business of stenography, typewriting or
any similar business in or from the Premises for the service or
accommodation of occupants of any other portion of the Building,
nor shall the Premises be used for manufacturing of any kind, or
any business or activity other than that specifically provided
for in Tenant’s Lease.

     
15.     Hand trucks
shall not be used in any space or public halls of the Building,
either by Tenant or others, except those equipped with rubber
tires and side guards or such other material-handling equipment
as Landlord may approve. No other vehicles of any kind shall be
brought by Tenant into the Building or kept in or about the
Premises.

     
16.     Tenant agrees to
coordinate all moving activity of office equipment and furniture
in and out of the Building with Landlord or Landlord’s
agent, and to use the services of an insured professional moving
company.

     
17.     Tenant shall
store all its trash and garbage within the Premises. No material
shall be placed in the trash boxes, receptacles or common areas
if such material is of such nature that it may not be disposed
of in the ordinary and customary manner of removing and
disposing of trash and garbage as is required by Landlord for
the Building, without being in violation of any law or ordinance
governing such disposal. All garbage and refuse disposal shall
be made only through entryways and elevators provided for such
purposes and at such times as Landlord shall designate.

     
18.     Canvassing,
soliciting, distribution of handbills, or any other written
material peddling in the Building are prohibited, and Tenant
shall cooperate to prevent the same.

     
19.     Tenant agrees to
abide by all governmental rules and regulations pertaining to
thermostatic control of the temperature of the Premises.

     
20.     Tenant agrees
not to allow or keep any animals or pets of any kind on the
Premises, except those seeing-eye dogs which are for the direct
purpose of aiding and assisting the visually impaired.

D-58

 

     
21.     Employees of
Landlord shall not perform any work or do anything outside of
their regular duties unless under special instructions from
Landlord.

     
22.     Landlord may
waive any one or more of these Rules and Regulations for the
benefit of any particular Building tenant or tenants, but no
such waiver by Landlord shall be construed as a waiver of such
Rules and Regulations in favor of any other Building tenant or
tenants, nor prevent Landlord from thereafter enforcing any such
Rules and Regulations against any or all of the tenants of the
Building.

     
23.     These Rules and
Regulations are in addition to, and shall not be construed to in
any way modify or amend, in whole or in part, the terms,
covenants, agreements and conditions of any lease of any
premises in the Building, including Tenant’s Lease.

     
24.     Landlord
reserves the right to make such other reasonable rules and
regulations as in its judgment may from time to time be needed
for the safety, care, and cleanliness of the Building, and for
the preservation of good order therein; provided the same shall
(a) not diminish tenant’s rights under the Lease, (b) does
not increase the financial burdens of Tenant, or (c) is not
inconsistent with the Lease.

D-59

 

EXHIBIT E

Declaration of Lease Commencement

     
THIS DECLARATION is attached to and made a part
of that certain Deed of Lease dated the
           day
of January, 2002, (the “Lease”) entered into by and
between PLAZA OFFICE DEVELOPMENT II, LLC, a Delaware limited
liability company (“Landlord”) and ALLIANCE BANK
CORPORATION a Virginia banking corporation (“Tenant”).

     
Landlord and Tenant are parties to the Lease. All
capitalized terms used herein shall have the same meaning as was
ascribed to such terms in the Lease, unless otherwise indicated.

     
Landlord and Tenant do hereby declare that
(a) the “Commencement Date” is hereby established
to be
                              ,
(b) the Rent Commencement Date is
                              
and (c) the Term of the Lease shall expire on
                              .
The Lease is in full force and effect as of the date hereof,
Landlord has fulfilled all of its obligations under the Lease
required to be fulfilled by Landlord on or prior to such date
with the exception of punch list items, and Tenant has no right
of setoff against any rentals.

     
IN WITNESS WHEREOF Landlord and Tenant have
executed this Declaration as of the
           day
of
                    ,
20     .

	 	 	 
	 
	
    
    WITNESS/ATTEST:

    	 	
    LANDLORD:

    

    PLAZA AMERICA OFFICE

    DEVELOPMENT II, LLC

    

     By: PLAZA OFFICE LIMITED
    PARTNERSHIP

    

    By: Plaza America Development Corporation,

    Its general partner

    

    By:

    _______________________________________________

    Name:

    Title:

    

     TENANT

    

    ALLIANCE BANK CORPORATION

    

    By:

    _______________________________________________

    Name: 

    _______________________________________________

    Title: 
    _______________________________________________

E-1

 

EXHIBIT F

Form of Estoppel Certificate

TO:_____________________________________________________

		
	RE:	
    Premises known as and located at
    11730 Plaza America Drive, Reston, Virginia (the
    “Building”)

     
The undersigned, ALLIANCE BANK CORPORATION
(“Tenant”), does hereby certify to the Lender as
follows:

     
1.     Tenant is the
tenant under that certain lease dated
     , between Tenant and Plaza
America Office Development II, LLC, as landlord
(“Landlord”), as amended, modified or supplemented by
          ,
leasing a portion of the Building (the “Premises”) as
more particularly described in the said lease. Said lease, as so
amended, modified or supplemented, is hereinafter referred to as
the “Lease”.

     
2.     The Lease is in
full force and effect and, except as set forth above, has not
been amended, modified or supplemented.

     
3.     The Lease
represents the entire agreement between Tenant and Landlord with
respect to the leasing and occupancy of the Premises, and there
are no other agreements or representations of any kind between
Landlord and Tenant with respect thereto. Without limiting the
foregoing, Tenant does not have any rights of first refusal for
additional space, options to increase or relocate its space or
options to purchase the Premises or any interest therein, other
than as may be set forth in the Lease.

     
4.     To the best of
Tenant’s knowledge except as set forth below all
obligations of Landlord to be performed or complied with by
Landlord through the date hereof have been fully performed and
complied with including, without limitation, any obligations of
Landlord to prepare the Premises for Tenant’s occupancy,
and there exists no default or condition, state of facts or
event that, with the passing of time or the giving of notice, or
both, would constitute a default by Landlord in the performance
of its obligations under the Lease.

     
5.     To the best of
Tenant’s knowledge, all obligations of Tenant to be
performed or complied with by Tenant through the date hereof
have been fully performed and complied with and there exists no
default or condition, state facts or event that, with the
passing of time or the giving of notice, or both, would
constitute a default by Landlord in the performance of its
obligations under the Lease.

     
6.     The term of the
Lease commenced on
                    ,
and shall expire on
                    ,
unless sooner terminated in accordance with the terms of the
Lease. Tenant has no rights to extend the term of the Lease
except as set forth in the Lease.

     
7.     The current base
monthly rent under the Lease is
$                per
month and has been paid for the period through
                    .
All additional rent for monthly payments of Tenant’s Share
of Operating Costs and Real Estate Taxes for the current fiscal
year have 

E-2

 

been paid for the period
through
                    ,
and all other charges due under the Lease have been paid to
date. Tenant has no claim for overpayment of additional rent for
any period, prior to calendar
year
          .

     
8.     There are no
existing offsets or defenses by Tenant to the payment of rent
and other charges payable by Tenant or otherwise to the
enforcement by the Landlord of the Lease.

     
9.     Tenant has
delivered a cash security deposit under the Lease. No other
security has been given to Landlord under the Lease. The amount
of the security deposit is
$                    .

     
10.     Except as set
forth below, there is no free rent period or any unexpired
concession in or abatement of rent, and any construction,
build-out, improvements, alterations, or additions to the
Premises required under the Lease have been fully completed.

     
11.     Tenant is in
sole possession of the Premises and has not assigned, sublet,
pledged, mortgaged, transferred or otherwise conveyed all or any
portion of its interest in the Premises or the Lease.

     
12.     Tenant has not
filed, and has not received notice that any other person has
filed, any actions against Tenant under the bankruptcy or
insolvency laws of the United States or any other state or
territory of the United States.

     
13.     Tenant
understands and acknowledges that this certificate is delivered
to, and shall be relied on
by
                    ,
the Lender/ Purchaser in connection with an extension of a loan
financing/ acquisition of the Landlord’s interest in the
Building and the land on which it stands (the “Mortgaged
Property”).

     
14.     Tenant confirms
and agrees that the Lease is and shall at all times be subject
and subordinate to any mortgages or deeds of trust now or
hereafter affecting the Mortgaged Property, and any amendments,
modifications, consolidations, substitutions, replacements,
additions, renewals, extensions, or re-advances thereof.

     
15.     All insurance
required of Tenant by the Lease has been provided by Tenant and
all premiums therefore have been paid.

     
16.     The address for
notices to Tenant under the Lease is correctly set forth in the
Lease.

     
17.     The person
signing this letter on behalf of Tenant is duly authorized by
Tenant to do so on behalf of Tenant.

     
18.     Tenant agrees to
promptly provide the Lender at its offices
at
                                        ,
Attention:
                    ,
with copies of any notices of default given by or received by
Tenant with respect to the Lease and/or the Premises.

E-3

 

		
	 	
    ALLIANCE BANK CORPORATION
	 
	 	
    By: 

	 	
    Name: 

	 	
    Title: 

E-4

 

SCHEDULE 1

TD Waterhouse Securities, Inc.

Ferris Baker Watts, Incorporated

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