Document:

Exhibit 10.14

FINANCIAL SECURITY ASSURANCE
HOLDINGS LTD.

Annual Bonus Pool Guideline

Financial Security Assurance Holdings Ltd.
(including its direct and indirect subsidiaries, the “Company”) maintains an
annual bonus pool (the “Bonus Pool”) for the benefit of Company employees equal
to a predetermined percentage (the “Specified Percentage”) of the increase in
adjusted book value (“ABV”) of the Company during the applicable year (as
derived from the Company’s IFRS financial statements), excluding unrealized
gains and losses on investments, net of tax, and excluding the mark-to-market,
net of tax, of investment grade credit derivatives, but including a return on
equity (“ROE”) modifier described below. 
For the 2004 Bonus Pool, the Human Resources Committee of the Board of
Directors of the Company (the “HR Committee”) has set the Specified Percentage
at 11.25%.  The increase in ABV during
the applicable year will be equal to (a) the percentage growth in ABV per share
during such year, with credit given for dividends paid, multiplied by (b) ABV
as of the beginning of such year.  The HR
Committee retains the right to evaluate the Bonus Pool formula annually;
however, the intent is to maintain the Bonus Pool formula as long as practical
to promote stability.

The ROE modifier will adjust downward the
percentage growth in ABV per share if the “Target ROE” exceeds the ROE achieved
in the aggregate for all transactions insured during the applicable year (the “Actual
Average ROE”), with a maximum adjustment of 2%. 
The “Target ROE” equals the after-tax book yield on the Company’s
investment portfolio (excluding the investment portfolios for Financial
Products, variable interest entities, and refinanced transactions) (determined
as of the December 31 immediately preceding the compensation year) plus 9%,
with a maximum Target ROE of 15%.  In the
event that the Actual Average ROE is less than the Target ROE for any year,
then the percentage growth in ABV per share for such year will be reduced by an
amount equal to 1⁄2 the excess of the Target ROE (expressed as a percentage) over
the Actual Average ROE (expressed as a percentage), subject to a maximum
reduction of 2%.

The
following example illustrates the calculation of the Bonus Pool, including the
effect of the ROE modifier, based on the assumptions below:

	
  ABV at beginning of year:

  	
  $4 billion

  	
  After-tax portfolio book yield

  	
  5%

  
	
  Growth in ABV per share:

  	
  13%

  	
  Target ROE

  	
  14%

  
	
  Specified Percentage:

  	
  11.25%

  	
  Actual Average ROE

  	
  12%

  
	
   

  	
   

  	
   

  	
   

  
	
  ROE modifier = 1⁄2 x (14% - 12%) = 1%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bonus Pool = $4 billion x (13% - 1%) x 11.25% =
  $54.0 million

  	
   

  

 

Amounts of the Bonus Pool in respect of any year,
determined as provided above, that are not distributed to employees for that
year will be credited to a “Rainy Day Fund” that will be available in
subsequent years to fund bonus payments to employees in excess of the Bonus
Pool determined as provided above, provided that the Rainy Day Fund shall not
exceed an amount equal to $25 million, adjusted to reflect increases in the
Consumer Price Index from and after January 1, 2005.Exhibit
10.20

 

 

GROUND
LEASE

BETWEEN

SCOTTS
CORNER LLLP

as Landlord

and

CARROLLTON
BANK

as Tenant

 

 

 

 

 

Date:
January 13, 2006

 

 

Premises:

10301
York Road

Cockeysville, Maryland 21030

 

 

Table of Contents

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  2A.

  	
   

  	
  Flood Plan and Site
  Plan Submission; Regulatory Approval

  	
   

  	
  4

  
	
  2B.

  	
   

  	
  Site Environmental and
  Soil Studies

  	
   

  	
  5

  
	
  3.

  	
   

  	
  Lease Term

  	
   

  	
  5

  
	
  4.

  	
   

  	
  Landlord’s Construction
  Obligations

  	
   

  	
  6

  
	
  5.

  	
   

  	
  Tenant’s Construction
  Obligations

  	
   

  	
  6

  
	
  6.

  	
   

  	
  Use of Premises

  	
   

  	
  7

  
	
  7.

  	
   

  	
  Rent

  	
   

  	
  7

  
	
  8.

  	
   

  	
  Repair and Maintenance
  Obligations

  	
   

  	
  8

  
	
  9.

  	
   

  	
  Taxes and Assessments

  	
   

  	
  8

  
	
  10.

  	
   

  	
  Utilities

  	
   

  	
  9

  
	
  11.

  	
   

  	
  Alterations

  	
   

  	
  9

  
	
  12.

  	
   

  	
  Trade Fixtures

  	
   

  	
  9

  
	
  13.

  	
   

  	
  Signs

  	
   

  	
  10

  
	
  14.

  	
   

  	
  Landlord’s Access

  	
   

  	
  10

  
	
  15.

  	
   

  	
  Rules and Regulations

  	
   

  	
  10

  
	
  16.

  	
   

  	
  Indemnification

  	
   

  	
  11

  
	
  17.

  	
   

  	
  Insurance and Casualty

  	
   

  	
  12

  
	
  18.

  	
   

  	
  Eminent Domain

  	
   

  	
  13

  
	
  19.

  	
   

  	
  Assignment and
  Subletting

  	
   

  	
  14

  
	
  20.

  	
   

  	
  Mechanics’ Liens and
  Other Liens

  	
   

  	
  15

  
	
  21.

  	
   

  	
  Quiet Enjoyment

  	
   

  	
  15

  
	
  22.

  	
   

  	
  Landlord’s Right to
  Mortgage; Attornment

  	
   

  	
  15

  
	
  23.

  	
   

  	
  Estoppel Certificates

  	
   

  	
  16

  
	
  24.

  	
   

  	
  Environmental Matters

  	
   

  	
  16

  
	
  25.

  	
   

  	
  Defaults and Remedies

  	
   

  	
  18

  
	
  26.

  	
   

  	
  Bankruptcy or
  Insolvency

  	
   

  	
  20

  
	
  27.

  	
   

  	
  Miscellaneous
  Provisions

  	
   

  	
  20

  

 

 

GROUND LEASE

THIS LEASE (the “Lease”), dated
January 13, 2006 (the “Effective Date”), is made and entered into by and
between SCOTTS CORNER LLLP, a Maryland limited
liability limited partnership, f/k/a Scotts Corner Limited Partnership (the “Landlord”), having an office at 3457 Sweet Air Road,
Phoenix, Maryland 21131, and CARROLLTON BANK,
a Maryland state chartered commercial bank (the “Tenant”)
having an office at 344 N. Charles Street, Baltimore, Maryland 21201, Attn:
Robert A. Altieri, President.

INTRODUCTORY STATEMENT

Landlord is the owner of two (2) adjacent parcels of
land (the “Land”) containing approximately 0.6650 acres and a triangular parcel
containing approximately 460 square feet, located at the northeast corner of
Scott Adam Road at its intersection with York Road (Tax Account Nos
08-19-011392 and 21-00-011592), Cockeysville, Maryland, as more particularly
described on Exhibit A.  Landlord desires
to lease the Land to Tenant and Tenant desires to rent the Land from Landlord,
subject to and in accordance with the terms and conditions hereinafter set
forth.

NOW, THEREFORE, for good and valuable consideration,
Landlord leases to Tenant and Tenant rents from Landlord the Land during the
Term (as hereinafter defined) of this Lease, and any renewal or extension
thereof.  This Lease is made upon the
following terms and conditions:

1.  Definitions.
 As used in this Lease, the
following terms are defined as follows:

1.1 Additional Rent – see
Section 7.2.

1.2. Annual Rent –

 

	
  Applicable Portion of
  Initial Term

  	
   

  	
   

  	
   

  	
  Monthly

  Installment

  	
   

  
	
  Beginning

  	
   

  	
  Ending

  	
   

  	
  Annual Rent

  	
   

  	
  (Annual ÷ 12)

  	
   

  
	
  Year 1

  	
   

  	
  Year 5

  	
   

  	
  $140,000.00

  	
   

  	
  $11,666.66

  	
   

  
	
  Year 6

  	
   

  	
  Year 10

  	
   

  	
  $157,500.00

  	
   

  	
  $13,125.00

  	
   

  
	
  Year 11

  	
   

  	
  Year 15

  	
   

  	
  $177,187.50

  	
   

  	
  $14,765.62

  	
   

  
	
  Year 16

  	
   

  	
  Year 20

  	
   

  	
  $199,355.94

  	
   

  	
  $16,611.33

  	
   

  

 

	
  Renewal Terms, if exercised

  	
   

  	
   

  	
   

  	
  Annual Rent

  	
   

  	
  Monthly

  Installment 

  (Annual ÷ 12)

  	
   

  
	
  First Renewal Term

  	
   

  	
   

  	
   

  	
  $224,252.93

  	
   

  	
  $18,687.74

  	
   

  
	
  Second Renewal Term

  	
   

  	
   

  	
   

  	
  $252,284.55

  	
   

  	
  $21,023.71

  	
   

  
	
  Third Renewal Term

  	
   

  	
   

  	
   

  	
  $283,820.12

  	
   

  	
  $23,651.68

  	
   

  
	
  Fourth Renewal Term

  	
   

  	
   

  	
   

  	
  $319,297.64

  	
   

  	
  $26,608.14

  	
   

  

 

 

 1
 

 

1.3 Commencement Date – the date of execution of this Lease by
Landlord and Tenant.

1.4 Construction Period – the period during which Tenant shall
have exclusive possession of the Land and shall commence erection of the Tenant
Improvements

1.5 Environmental Laws – all applicable federal, state, or local
law, ordinance, or regulation, including, but not limited to the Resource
Conservation and Recovery Act, the Toxic Substances Control Act, the
Comprehensive Environmental Response, Compensation and Liability Act, the Clean
Air Act, and the Clean Water Act that regulate any hazardous or toxic
substance, material, or waste and amendments thereto.

1.6 Hazardous Materials – any hazardous or toxic substance,
material, or waste, including, but not limited to, those substances, materials,
and wastes listed in the United States Department of Transportation Hazardous
Materials Table (49 CFR 172.101) or by the Environmental Protection Agency as
hazardous substances (40 CFR Part 302) and amendments thereto, or such
substances, materials and wastes regulated under any Environmental Laws.

1.7. Initial Term – See Section 3.1.

1.8. Land – as defined in the Introductory Statement.

1.9. Landlord’s Delivery Date – the date on which Landlord
delivers the Land to Tenant with the Landlord’s Improvements removed in
accordance with this Lease.

1.10. Landlord Improvements – those improvements, consisting of
gas pumps, underground fuel tanks, gas station building, car wash building and
other permanent improvements situate on the Land, which are to be removed by
Landlord prior to commencement of the Construction Period.

1.11. Landlord’s Notice Address – the following address for
notices or such other address as Landlord may designate in writing from time to
time:

c/o DJF, Inc.

P.O. Box 264

Phoenix, Maryland 21131

With a copy to:

Eugene W. Cunningham, Jr., Esquire

Royston, Mueller, McLean & Reid, LLP

102 West Pennsylvania Avenue, Suite 600

Towson, Maryland 21204-4575

 2
 

 

1.12. Landlord’s Payment Address – the following address for rent
payments or such other address as Landlord may designate in writing from time
to time:

c/o DJF, Inc.

P.O. Box 264

Phoenix, Maryland 21131

1.13. Permitted Use – commercial banking and any business
permitted by the Regulatory Authorities.

1.14. Permitting Period – the period during which Tenant shall
obtain the permits necessary to construct the Tenant Improvements.

1.15. Premises – the Land and the Tenant Improvements.

1.16. Regulatory Approval Period – the period during which Tenant
shall obtain the necessary approvals from applicable governmental regulatory
bodies in order to operate a branch bank office at the Premises.

1.17. Regulatory Authorities – those governmental authorities
having jurisdiction and regulatory power over Tenant’s operations.

1.18. Rent Commencement Date – the earlier to
occur of

1)     the end of
the Construction Period; or

2)     the date
Tenant opens for business with the public at the Premises.

1.19. Renewal Term – See Section 3.2.

1.20. Rent – the payment of the Annual Rent, Interim Rent and
Additional Rent specified in this Lease.

1.21. Tenant Improvements – the one-story masonry building,
building sidewalks and curbs, building lighting fixtures and conduits, utility
connections, paving and all improvements to be contracted by Tenant on the Land
for the Permitted Use, in accordance with plans and specifications therefor
approved in writing by Landlord (which approval shall not be unreasonably
withheld or delayed) and in accordance with the other terms and conditions of
this Lease.

1.22. Tenant’s Notice Address – the following address for notices
or such other address as Landlord may designate in writing from time to time:

Carrollton Bank

344 N. Charles Street

Baltimore, Maryland 21201

Attn: Robert A. Altieri, President

 3
 

With a copy to:

Rogers, Moore & Rogers

6 S. Calvert Street

Baltimore, Maryland 21202

Attn:  William C. Rogers, Jr., Esquire

1.23. Term – the Initial Term or the applicable Renewal Term,
whichever is then in effect.

2A. Flood Plan and Site Plan Submission;
Regulatory Approval.

2.1 The parties
acknowledge that Baltimore County, Maryland (the “County”) requires that Tenant
submit a flood plain study of the Land in connection with submittal of Tenant’s
site plan to begin the County plan review process.  Tenant shall promptly commission the
preparation of the flood plain study (the “Flood Study”) and its site plan with
Frederick Ward Associates, Inc.  (“FWA”)
and provide both to County within sixty (60) days after the Effective
Date.  In the event that the County fails
to approval Tenant’s site plan as a result of any Flood Study issues and, as a
result thereof, Tenant elects to terminate this Lease, then Landlord shall
reimburse Tenant the cost of the Flood Study (not exceeding $12,500.00),
provided FWA issues Landlord a letter confirming that Landlord has sole
ownership rights to and use of the Flood Study. 
In any event, if the County fails to approve Tenant’s site plan and
Tenant does not, in its exercise of its sole discretion, modify the site plan
to obtain County approval, this Lease shall terminate promptly upon the
issuance of the County’s disapproval.

2.2 Additionally,
as part of Tenant’s submission of its site plan, Tenant will cause an ALTA or
boundary survey of the Land to be prepared (the “Land Survey”).  Upon the filing of Tenant’s site plan and
Flood Study with the County and provision of a copy of the final Land Survey to
Landlord, Landlord shall reimburse Tenant the cost of the Land Survey (not
exceeding $15,000.00), provided FWA issues Landlord a letter confirming that
Landlord has co-ownership rights to and use of the Land Survey.

2.3 If the County
does not approve Tenant’s site plan on or before December 1, 2006, then either
party may terminate this Lease prior to Issuance of County approval upon
written notice to the other.

2.4 Upon County
approval of Tenant’s site plan, Tenant, at its sole cost and expense, shall
file for and thereafter diligently pursue Regulatory Approval.  Tenant shall notify Landlord in writing (the “Regulatory Approval Notice”) promptly after Tenant
receives Regulatory Approval.  If
Regulatory Approval is denied, this Lease shall be of no further force and
effect, and neither party shall have any further rights or obligations
hereunder.  Furthermore, If Tenant has
not received Regulatory Approval within ninety (90) days after Tenant’s request
is submitted, then either party may terminate this Lease prior to receipt of
Regulatory Approval upon written notice to the other.

 4
 

 

2.5 Tenant shall
provide Landlord with regular progress reports regarding Tenant’s pursuant of
the matters described in Sections 2.1, 2.2, 2.3 and 2.4 including providing the
dates of filing of documents with the County and of the request for Regulatory
Approval, together with copies of all filing documents.  Tenant shall also provide copies of all
correspondence from the County and Regulatory Authorities, promptly upon
receipt.  Tenant shall use its good
faith, diligent efforts to file for, seek and obtain the various approvals
required for its construction and use of the Tenant Improvements.

2.6 If the Land is
subject to any mortgage, deed of trust, ground lease, or other encumbrance
superior to this Lease, Tenant shall receive a non-disturbance and attornment
agreement from the mortgage, ground lessor, or other party holding an interest
in the Premises superior to Tenant, which agreement must be in form reasonably
accepted to Tenant.  If Tenant does not
receive the non-disturbance and attornment agreement under this Section 2.6
within sixty (60) days after the Effective Date, Tenant may terminate this
Lease upon written notice to Landlord within thirty (30) days thereafter.

2B.  Site,
Environmental and Soil Studies.  Within sixty (60) days after the Effective
Date, Tenant shall conduct its site review (including availability of
utilities), environmental and soil studies to determine acceptability of the
Land for the Permitted Use.  The Land is
to be provided in its “as is “condition, without warranty or responsibility on Landlord’s
part except (i) that Landlord shall deliver the Closure Letter in
accordance with Section 4.1, and (ii) for Landlord’s indemnification
obligations under Section 24 hereof.

3. Lease Term.

3.1 Initial Lease Term. The initial term (the “Initial Term”) of this Lease shall commence on the
Commencement Date and shall expire at the end of the month that is twenty (20)
years after the Rent Commencement Date unless sooner terminated in accordance
with the provisions hereof.  After the
Rent Commencement Date and upon Landlord’s request, Tenant shall promptly enter
into a written agreement with Landlord, mutually acceptable and in recordable
form, stipulating the Commencement Date, the Rent Commencement Date, and
expiration date of the Initial Term.

3.2 Renewals; Annual Rent During Renewals. As long as (i) Tenant
is not then in monetary default of this Lease nor in non-monetary default of
this Lease beyond any applicable cure period and (ii) Tenant is occupying a
portion of the entire Premises at the time of such election, Tenant may extend
this Lease for four (4) additional periods of five (5) years each (each a “Renewal Term”) on the same term and conditions as provided
in this Lease (except as set forth below), by delivering written notice of the
exercise thereof to Landlord not later than nine (9) months before the
expiration of the then current Term.

(a)   After the
last scheduled Renewal Term hereunder, Tenant shall have no further extension
options unless expressly granted by Landlord in writing; and

(b)   Landlord
shall lease to Tenant the Premises in its then-current condition at the
beginning of each Renewal Term.

 5
 

 

Tenant’s rights under this Section 3.2 shall terminate if (i) this
Lease or Tenant’s right to possession of the Premises is terminated, or (ii)
Tenant fails to timely exercise its option under this Section 3.2, time being
of the essence with respect to Tenant’s exercise thereof.

4. Landlord’s Construction Obligations.

4.1 Removal of Tanks and Improvements. Before the Effective
Date, Landlord removed the existing gas pumps, underground fuel tanks and
various other improvements existing on the Land.  The removal of the gas pumps and underground
fuel tanks were undertaken in compliance with Maryland Department of the
Environment (MDE) procedures including with the presence of an MDE
official.  Landlord has been advised that
a “closure and no further action required letter” (the “Closure Letter”) will
be issued.  Landlord shall be responsible
for obtaining the Closure Letter.  If the
Closure Letter is not obtained within ninety (90) days after the Effective
Date, then Tenant may terminate this Lease prior to issuance of the Closure
Letter upon written notice to Landlord. 
Landlord shall not be liable to Tenant for failure of MDE to timely
issue the Closure Letter.

4.2 Otherwise  “AS IS” delivery. Except
as provided in Section 4.1 with respect to Landlord’s delivery of the Closure
Letter, the Land shall be delivered to Tenant in absolutely “AS IS” condition,
without representation or warranty by Landlord as to the physical features
thereof in any manner whatsoever.  Tenant
acknowledges that it accepts delivery of the Land in the condition specified in
this Section 4.2.

5. Tenant’s Construction Obligations.

5.1 General. Tenant shall construct or cause to be constructed
the Tenant Improvements in a good and workmanlike manner.  All construction by Tenant shall be done
pursuant to plans and specifications therefor prepared by a licensed architect
or engineer.  All such plans and
specifications for the Tenant Improvements and the contractor or contractors
engaged by Tenant to perform such work shall be subject to Landlord’s prior
written approval, which approval shall not be unreasonably withheld or
delayed.  Tenant shall bear all risk of
theft, loss or damage to its personal property, including building materials
stored on the Land or incorporated into Tenant Improvements, from whatsoever
cause, unless such loss or damage is due to the negligence or willful
misconduct of Landlord.

5.2 Permitting Period. Tenant shall prepare, or cause to be
prepared, complete plans and specifications for the Tenant Improvements (the “Plans”) and shall submit the same to Landlord for Landlord’s
approval, which approval shall not be unreasonably withheld or delayed.  If Landlord does not respond within fifteen
(15) days after Tenant’s submission of the Plans, the Plans will be deemed
approved.  After Landlord and Tenant have
agreed to final plans and specifications for the building portion of Tenant
Improvements and  Tenant has received the
necessary County site plan approvals pursuant to Section 2.3 and the necessary
Regulatory Approval pursuant to Section 2.4, Tenant shall make application to
the County for a building permit and to all other appropriate governmental
agencies, quasi-governmental agencies and utility companies for all permits and
approvals necessary to construct the Tenant Improvements (collectively, “Tenant’s Permits”). 
Tenant shall use diligent efforts

 6
 

 

to obtain the Tenant’s Permits on or before August 1, 2007 (this is the
“Permitting Period”).  If Tenant is
unable to obtain Tenant’s Permits by the conclusion of the Permitting Period,
either party may terminate this Lease upon written notice to the other.

5.3 Construction Period. Promptly upon issuance of Tenant’s
Permits, Tenant shall commence construction of the Tenant Improvements and use
its best efforts to complete the same within one hundred twenty (120) days
after issuance of Tenant’s Permits (this 120 day period is the “Construction
Period”).  Whether or not Tenant has
complete Tenant Improvements by the conclusion of the Construction Period, the
Rent Commencement Date shall begin not later than the end thereof.

5.4 Interim Payments to Landlord. During the Construction
Period, Tenant shall pay interim rent to Landlord of $2,500.00 per month.

6. Use of Premises.

6.1 Throughout the
Term, Tenant shall use the Premises solely for the Permitted Use or in the
event of assignment or sublease of the Premises (so long as Tenant remains
liable under this Lease), for any legally permitted use.

6.2 Upon
substantial completion of the Tenant Improvements and the obtaining of all
necessary use and occupancy permits, Tenant shall occupy the Premises and
promptly open for business.

6.3 Tenant shall
promptly comply with all laws, rules, regulations, requirements, notices of
governmental bodies and public authorities and the reasonable recommendations
of the local board of fire underwriters rating bureau or other fire insurance
rating organization for Baltimore County, Maryland and of the Landlord’s
insurers, pertaining to the Premises, the improvements thereon or their use,
occupancy or maintenance.

6.4 Tenant will
comply with all provisions of the Americans With Disabilities Act (the “ADA”) with respect to the Premises.

7. Rent

7.1 Commencing on
the Rent Commencement Date and continuing throughout the Initial Term, Tenant
shall pay Annual Rent in equal monthly installments, in advance, on the first
day of each calendar month.  If the Rent
Commencement Date falls on a day other than the first day of a calendar month,
then the Annual Rent for any fractional month during the Term shall be
apportioned on a daily basis based upon a thirty (30) day month.

7.2 Whenever under
the terms of this Lease any sum of money is required to be paid by Tenant in
addition to the Annual Rent herein reserved, said sum shall be deemed to be
additional rent (“Additional Rent”)
and collectible as rent whether or not so designated.  All Annual Rent and Additional Rent shall be
paid without prior demand, except as provided otherwise by the terms of this
Lease, and without any setoff, abatement or deduction of any

 7
 

 

nature whatsoever.  Any payment by Tenant of a lesser amount of
Annual Rent or Additional Rent than is then due shall be applied to such
category of arrearage as Landlord may designate irrespective of any contrary
designation by Tenant and to the oldest, most recent or other portion of the
sum due as the Landlord may determine; and Landlord’s acceptance of any such
partial payment shall not be deemed an accord and satisfaction, and shall be
without prejudice to Landlord’s right to pursue any other remedies.

7.3 All rent under
this Lease shall be paid to Landlord at Landlord’s Payment Address.

8. Repair and Maintenance Obligations.

8.1 Except for matters
pertaining to hazardous materials addressed elsewhere in this Lease, Landlord
shall have no obligation to repair, maintain or address any condition with the
Land.  Except as set forth in the
preceding sentence, Tenant shall be solely responsible for the repair,
maintenance and upkeep of the Land and, with respect to the Tenant
Improvements, the repair and maintenance thereof, in good condition and repair
and in compliance with all applicable governmental regulations, for the entire
Term of the Lease.

8.2 Without
limiting the provisions of Section 8.1, Tenant shall perform all grass cutting,
landscaping, upgrades to or replacements of the Tenant’s Improvements as may be
necessary in connection with the use and occupancy thereof and/or as may be
required to comply with all applicable governmental regulations.

9. Taxes and Assessments.

9.1 During the
Term, Tenant shall bear, pay and discharge all real estate taxes, special and
benefit assessments, minor privilege charges, metropolitan district charges and
other public charges levied or imposed by any governmental agency upon or with
respect to ownership, use or occupancy of the Premises, including taxes on
rents (whether imposed on Landlord or Tenant), but excluding taxes identified
as income taxes.

9.2 All sums
payable by Tenant under this Section 9 shall be paid prior to accrual of
interest or penalty for nonpayment.  With
respect to real estate taxes and/or special and benefit assessments and other
charges assessed separately and directly to Tenant, Tenant shall furnish
Landlord with evidence of payment in the form of copies of the paid receipts
promptly after payment.  In any case in
which Tenant contests in good faith any such imposition Tenant may defer
payment to the extent that it is necessary and legally possible to defer the
same in order to make such contest and diligently pursue the same, but in such
event it shall be a condition of Tenant’s privilege to defer any payment, that
Tenant shall, if so requested by Landlord, furnish Landlord, with a bond,
reasonably satisfactory to Landlord as to surety, in an amount and upon such
conditions as shall reasonably be necessary to protect the interest of Landlord
against any loss or impairment resulting from such delay.

9.3 Upon the Rent
Commencement Date, the parties shall take such action as may be necessary or
appropriate in order that proposed assessment notices and separate tax bills

 8
 

 

for the Premises are sent
by taxing authorities directly to Tenant, including, if necessary, a
designation of Tenant’s address as address of record for the owner for tax
assessment and billing purposes. Tenant shall promptly furnish to Landlord
copies of all such proposed assessment notices and separate tax bills that
Tenant receives from the taxing authorities. Tenant shall have the right to
contest the validity and/or seek a reduction of said assessment at Tenant’s
sole cost and expense. Tenant shall indemnify Landlord, for the amount of any
interest, penalty and additional cost payable by Landlord as a result of Tenant’s
contest of the validity of or attempt to reduce such assessment. Tenant shall
have the right to institute such proceedings in the name of the Landlord as
Tenant may deem necessary to contest the validity or seek a reduction of said
assessment; provided that, if it is necessary to
institute said proceedings in the name of the Landlord, the Landlord shall be
given prior written notice of said proceedings. Landlord will, at Tenant’s sole
cost and expense, execute and deliver to Tenant such documents and/or information
as Tenant may reasonably require in connection with Tenant’s contest of the
validity of or attempt to reduce said assessment.

9.4 Nothing contained
in this Lease shall be deemed to include within the definition of the term “real
estate taxes” any tax such as inheritance, estate, succession, gift and/or
federal or state income taxes that are or may be imposed upon Landlord.

10. Utilities.

10.1 Beginning on the date that Tenant enters the Land
for construction of the Tenant Improvements, Tenant shall pay, when due, all
consumption charges for all utility services furnished to the Premises.

10.2 Landlord shall not be liable to Tenant for
damages because of interruptions in utility services unless such interruption
is due to the negligent or willful act of Landlord, its employees, agents,
contractors, or subcontractors. No interruption in utility service shall cause
any abatement in Tenant’s obligation to pay Rent.

11. Alterations.

                After
the Tenant Improvements have been completed in accordance with the Plans,
Tenant shall not thereafter make any alterations, additions, or improvements
affecting structural or support elements of or in the building or affecting any
utility systems servicing the Premises without Landlord’s prior written
approval, which approval shall not be unreasonably withheld or delayed. Any
alterations, additions, or improvements by Tenant that are permitted hereunder
or thereafter approved by Landlord shall, at the end of  the Term or sooner
expiration of this Lease, become the property of Landlord and remain upon the
Premises.

12. Trade
Fixtures.

                All
furniture, counters, business machinery, banking equipment, computers
(regardless of the manner of installation), and interior removable partitions
placed upon the Premises during the Term of this Lease, shall be considered as
chattels (for subsequent removal purposes) and shall not become part or parcel
of the real property, thereby permitting the same to

 9
 

 

be removable by the Tenant at the termination of this
Lease. Any damage caused by any
such removals shall be repaired by Tenant. Upon any termination of this Lease
all Tenant Improvements, other than the above (which shall be the property of
the Tenant and shall be timely removed by Tenant) shall become the property of
Landlord.

13. Signs.

                Subject
to Landlord’s prior approval as to design, location, height and color (which
approval shall not be unreasonably withheld or delayed), Tenant shall be
entitled to install and maintain on the Premises, at its cost and expense,
permanent professionally prepared signs containing Tenant’s trade name or logo
(and/or those of its subsidiaries and affiliates conducting business from the
Premises) so long as such signs comply with applicable law. Subject to Landlord’s
prior written approval (which approval shall not be unreasonably withheld or
delayed) as to design, location, height and
color, Tenant may, if permissible under applicable governmental sign
regulations, construct a free standing pylon sign on the Premises as well. Tenant may also, if permissible
under applicable governmental regulations, install a corporate-standard
environmental surround and/or shield for each of Tenant’s automatic teller
machines (“ATM”).

14. Landlord’s Access.

                Landlord
and its duly authorized representatives may enter the Premises only upon
reasonable advance notice to Tenant and subject to Tenant’s security
requirements (including the requirement for Landlord’s representative to be
escorted at all times by Tenant’s representative), to inspect the Premises and to rectify defaults of Tenant
pursuant to the rights granted
to Landlord under Section 25.2 (but only after Tenant has failed to commence
and diligently pursue a cure of the default within any applicable cure period
granted elsewhere in this Lease); provided, however,
that any such entry by Landlord and its representatives shall be done in such a
manner so as to not unreasonably interfere with the conduct of Tenant’s
business operations on the Premises or compromise security of the Premises and provided  further that Tenant consents to Landlord’s
immediate entry (without prior notice and escort) if an emergency occurs as
reasonably determined by Landlord. Landlord shall promptly restore any
disturbance to the Premises caused by any work performed by Landlord on the
Premises. Landlord may bring
upon the Premises all things reasonably necessary to perform any work done in
the Premises pursuant to this Section 14. Nothing herein contained shall be
deemed or construed to impose upon Landlord any obligation or responsibility whatsoever
for the care, maintenance or repair of the Premises, except as otherwise
specifically provided in this Lease.

15. Rules and Regulations. Tenant
further warrants, represents, covenants, and agrees to:

15.1 Keep the Premises (including exterior and interior
portions of all windows, doors and all
other glass) in a neat and clean condition;

15.2 Pay before
delinquency any and all taxes, assessments and public charges levied, assessed,
or imposed upon Tenant’s business or upon Tenant’s fixtures, furnishings or 

 10
 

 

equipment in the Premises and pay when and as due all
license fees, permit fees and charges of a similar nature for the conduct by
Tenant or any permitted subtenant of any business or undertaking authorized
hereunder to be conducted in the Premises;

15.3
Not permit the accumulation (unless in concealed metal containers) or
burning of any of Tenant’s rubbish or garbage in, on or about any part of the
Premises;

15.4 Except for newspaper vending machines, not use
the parking areas, sidewalks adjacent to or any other space outside the
improvements constructed on the Premises for display, sale, storage or any
other similar undertaking; provided that
such limitation shall not affect the use of the drive-in area, the night depository, and the ATM’s for their intended purposes
nor the placement of outdoor smoking receptacles for use by Tenant’s employees
and customers;

15.5 Not use any
advertising medium or sound devices inside the improvements constructed on the
Premises that may be heard outside the Premises, or permit any objectionable
odors to emanate from such
improvements; provided that such limitation
shall not affect the use of the
drive-in area, the night depository, and the ATM’s for their intended purposes;

15.6 Not use the
plumbing facilities in the Premises for any purpose other than that for which
they were constructed, or
dispose of any foreign substances therein, whether through the utilization of “garbage
disposal” units or otherwise;

15.7 Not use for any
purpose all or any portion of the roof or exterior walls of the Premises other
than for Tenant’s signs as provided
in this Lease; and

15.8 Not place any
paper or cardboard or other temporary signs on the exterior of the improvements unless any such
temporary signs are professionally done and neat in appearance.

16. Indemnification.

16.1 Tenant shall defend, indemnify and save Landlord
harmless from and against any and all claims, actions, demands, damages,
liability and expenses (including reasonable attorney’s fees) for injury to the
property of others and injury or death of persons which is caused by or arises (i) out of or in connection with Tenant’s
use or occupancy of the Premises or any negligent act or omission of Tenant,
its agents, employees, servants or contractors, or (ii) out of breach by Tenant
of any term, covenant or condition of this Lease to be performed or observed by
Tenant. Tenant shall not be liable, however, for any claims, actions, demands,
damages, liability and expenses (including reasonable counsel fees) described
in the preceding sentence that result from the negligence of Landlord, its
agents, employees, servants, or contractors and Landlord shall indemnify and save Tenant harmless from any claims, actions, demands, damages,
liability and expenses (including reasonable attorneys’ fees) resulting from
such negligence..

 

 11

 

17.          Insurance and Casualty.

17.1   Property Insurance. During
the Term, Tenant shall, at its expense, keep in force insurance on the Tenant
Improvements, whether now or hereafter constructed, for their full insurable
value (written on a 100% replacement cost basis), less a reasonable deductible,
and covering against loss from fire and perils including Basic Form Causes of
Loss. Such policy shall name Tenant and Landlord as insured as their interests
may appear. During the Term, Landlord shall, at its expense, maintain insurance
on any improvements on the balance of the Center for one hundred percent (100%)
of the full insurable value, less a reasonable deductible, (written on a
replacement cost basis) and covering against loss from fire, and perils including
Basic Form Causes of Loss written on an agreed amount basis.

(a)   Restoration After Casualty
Loss.
In the event of casualty damage to the Premises, Tenant shall be
entitled to all insurance proceeds for restoration of the Tenant Improvements; provided that Tenant
shall diligently repair, restore and reconstruct the Tenant Improvements to
substantially the same condition existing prior to such casualty. If Tenant does
not commence and diligently pursue the restoration of the Tenant Improvements
as herein required within one hundred eighty (180) days after the date of
casualty, then, in addition to any other rights or remedies available to
Landlord, Landlord shall be entitled to receive all insurance proceeds and, at
Landlord’s option, exercisable after thirty (30) days’ written notice to
Tenant, either (a) restore the Tenant Improvements to the extent of net
insurance proceeds received, or (b) raze and demolish any remaining Tenant
Improvements and pave the Land, paying any excess insurance proceeds to Tenant.
Notwithstanding anything to the contrary set forth in this Lease, if the Tenant
Improvements, or any additions, replacements, or alterations thereto, shall be
substantially damaged or destroyed by casualty during the final year of the Initial Term or during the final year of any Renewal Term unless Tenant
exercises or has exercised an available renewal option, then this Lease shall
terminate as of the date of such damage or destruction and all insurance
proceeds shall be paid solely to Landlord. Except as provided in the preceding
sentence, no casualty shall affect the obligation of Tenant to pay Rent under this Lease for
the entire Term hereof.

During all periods when Tenant’s use of the Tenant
Improvements is limited due to repair or casualty, Tenant may place or erect
temporary facilities on the Land for its operations, provided such temporary
facilities comply with all governmental requirements.

17.2   Liability Insurance of Tenant. Commencing on the date Tenant enters the Land for construction
of the Tenant Improvements and throughout the Term, Tenant shall, at its expense, keep in force commercial
general public liability insurance, automobile liability insurance, boiler
liability insurance and sprinkler damage liability insurance, covering bodily injury and property damage occurring
on the Premises, including contractual liability coverage for Tenant’s
indemnity obligations under this Lease with a limit of not less than One Million Dollars ($1,000,000.00) for bodily
injury and death and for property damage and with not less than Two Million Dollars
($2,000,000.00) in the aggregate; which policy shall be written on an
occurrence basis. During any period of construction, the liability policy shall
include an endorsement covering construction operations. The minimum coverage
limits set forth above 

 12
 

shall, at Landlord’s option, be increased on every fifth anniversary of the Rent
Commencement Date to a minimum coverage limit that is then commercially reasonable for
Tenant’s type of business.

17.3   General Requirements. All
liability insurance required to be maintained by Tenant shall name Tenant as
named insured and shall include Landlord as additional insured. All liability
insurance required to be maintained by Landlord shall name Landlord as named
insured and shall include Tenant as additional insured. All insurance required
to be maintained by either
Landlord or Tenant shall contain a provision that the insurer shall not cancel or reduce the coverage of any
such policy without sending thirty (30) days’ prior written notice to Landlord
in case of Tenant’s insurance or to Tenant in the case of Landlord’s insurance.
If Tenant fails to keep the required insurance in force after ten (10) days’
notice from Landlord, Landlord may do so and shall be entitled to collect the
premiums therefor from Tenant as Additional Rent on demand. All insurance
policies shall be written with insurance companies licensed to do business in
the state of Maryland having a Best Manual rating of A- or better as to general policy holders rating and of VII or better as to financial rating (or equivalent
ratings as such ratings may be revised from time to time). The insurance
required to be maintained under this Lease may be carried under a policy
commonly known as a “blanket
policy.” Within ten (10) days after the Landlord’s Delivery Date and prior to
any entry upon the Premises by Tenant, its agents or contractors, Tenant shall
furnish to Landlord copies and/or certificates of the insurance policies
required to be carried by it under this Section 17. Within ten (10) days after
the Landlord’s Delivery Date, Landlord shall furnish to Tenant copies and/or
certificates of the insurance policies requires to be carried by it under this
Section 17.

17.4   Workers’
Compensation Insurance. Landlord and Tenant and any contractors employed or engaged by Landlord or
Tenant shall obtain, keep in force and pay for workers’ compensation insurance
as required by law.

18.          Eminent Domain.

18.1   If the Premises is condemned in whole or in part under
the power of eminent domain, this Lease shall terminate as to the part condemned on the date title or possession vests in
the condemning authority, whichever is first. As used herein, the terms “condemned” and “condemnation”
include sale by Landlord to a condemning authority under threat of
condemnation. Landlord shall have the power
and authority to convey the entire Landlord’s interest in all or any part of the Premises to the condemning
authority without Tenant’s joinder, any such conveyance by Landlord alone shall
be deemed free and clear of any leasehold or other interest by Tenant therein,
any condemning authority shall be entitled to rely upon the provisions of this
sentence in accepting a deed from Landlord alone. As used herein the term “condemnation
award” includes the proceeds of any sale by Landlord to a condemning authority
under the threat of condemnation.

18.2   If any
condemning authority notifies Landlord of a proposed condemnation of any part
of the Land, Landlord shall give Tenant written notice of the proposed
condemnation together with whatever plats and data are furnished to Landlord by
the condemnor concerning the extent of
the proposed condemnation of the Premises. If any part of the improved

 13
 

portion of the Land is the subject of the proposed
condemnation which will result, in Tenant’s reasonable opinion, in a material
adverse impact on Tenant’s ability to operate its business, Tenant shall have
one hundred twenty (120) days after the date of such notice in which to elect
to cancel this Lease effective upon taking of possession pursuant to the
condemnation. If Tenant gives written notice of such election within such one
hundred twenty (120) days, and if the proposed condemnation is consummated,
then this Lease shall terminate entirely on the same date that this Lease terminates
as to the condemned portion of the Premises under Section 18.1 above. If Tenant
does not make a timely election to cancel this Lease, then this Lease shall
continue in effect without adjustment to the Annual Rent.

18.3   In the event of the condemnation of all or
any part of the Land, Tenant shall not be entitled to share in any part of the
condemnation award, including consequential damages, for the taking of its
leasehold estate, whether or not this Lease is terminated under the provisions
of this Section 18 by reason of such condemnation. Tenant shall, however, be
entitled to (i) a portion of any condemnation award attributable to the Tenant
Improvements and (ii) any separate award obtained by Tenant from the condemning
authority for moving expenses, loss of trade fixtures, and loss of business. If
this Lease is terminated, any condemnation award attributable to the Tenant
Improvements shall be allocated between Landlord and Tenant in the same ratio
as the reversionary interest of Landlord in the Tenant Improvements bears to
the then fair market value of the Tenant Improvements. In the event that this
Lease is not terminated, then all proceeds attributable to the Tenant
Improvements shall be made available to Tenant for restoration.

19.          Assignment and Subletting.

19.1   Except as provided in Section 19.2 below,
Tenant shall not assign this Lease in whole or in part without Landlord’s prior
written approval, which approval shall not be unreasonably withheld or delayed.
No Landlord consent shall be required for any subleasing of the Premises, in
whole or in part, by Tenant provided that Tenant shall provide Landlord with
advance written notice of the possession by any third party pursuant to any
sublease. Except as otherwise permitted by this Lease, any assignment by
operation of law, attachment or assignment for the benefit of creditors, shall,
at Landlord’s option, be inoperative. If Landlord at anytime consents in
writing to any assignment as defined in and prohibited by this Section 19, in
addition to any other consideration that may pass between the parties in
connection therewith, Tenant and any such assignee or sublessee shall be deemed
to have covenanted not to make any further assignment contrary to the
provisions of this Section 19, and such covenants shall be deemed to have made
as of the date of such consent and shall take effect prospectively from the
date thereof.

19.2   Notwithstanding anything contained in
Section 19.1 to the contrary, Tenant may, at any time, without the consent of
Landlord assign or otherwise transfer this Lease or any portion thereof to a
parent, subsidiary or affiliate corporation or entity; or any corporation or
entity resulting from the consolidation or merger of Tenant into or with any
other entity; or to any person, firm or corporation acquiring a majority of
Tenant’s issued and outstanding capital stock or a substantial part of Tenant’s
physical assets; provided, however, that in the
event of any 

 14
 

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

19.3   No assignment or sublease shall relieve
Tenant from any of its obligations under this Lease.

20.          Mechanics’ Liens and Other Liens.

20.1   If any mechanics’ or other lien is filed
against the Premises by reason of any labor, material or service furnished or
alleged to have been furnished to Tenant in connection with construction,
alteration or repair of improvements on the Premises made by Tenant, Tenant
shall cause such lien to be released of record by payment, bond or otherwise as
allowed by law, at Tenant’s expense, within ten (10) business days after the
filing and service thereof; and Tenant shall, at its expense, defend any
proceeding for the enforcement of such lien, discharge and judgment thereon and
save Landlord and any mortgagee harmless from all losses and expenses resulting
therefrom including reasonable counsel fees and other expenses incurred by
Landlord and any mortgagee, if any of them elect to defend or participate in
the defense of such proceedings. Nothing in this Section 20 or elsewhere in
this Lease shall be construed as a consent by Landlord that a mechanics’ lien
for any work authorized or contracted for by Tenant or required by this Lease
may attach to or constitute a lien against Landlord’s estate.

20.2   Tenant shall not permit the Premises to be
subjected to any statutory lien or any other lien or encumbrance that might
obtain priority over Landlord’s interest in the Premises or be in parity
therewith by reason of any act or omission on the part of Tenant or any of its
approved licensees or subtenants or their respective agents, servants,
employees or contractors other than real estate taxes for which no interest or
penalty has yet been incurred; and in the event that any such lien attaches to
the Premises, Tenant shall discharge such lien promptly by payment, bond or
otherwise as allowed by law, at its own expense, within ten (10) business days
after the filing (and service or notice) thereof.

21.          Quiet Enjoyment.

So long as no
default exists beyond any applicable cure period Tenant shall have the peaceful
and quiet use of the Premises, subject to the terms, covenants and conditions
of this Lease, without interference with possession by Landlord or any one
claiming by, through or under Landlord.

22.          Right to Mortgage; Attornment.

22.1   Landlord’s Right to
Mortgage.   Landlord shall
have the absolute right and/or power to mortgage or otherwise create any
security interest or other lien or encumbrance upon or affecting the Landlord’s
reversionary interest in the Premises or any improvements thereon or any part
thereof at any time and from time to time, and Landlord shall further have the
right and/or power to modify, extend, renew, replace, refinance or otherwise
change or effect any such mortgage, security interest, lien or encumbrance
created by Landlord pursuant to this Lease. As a condition to the granting of
any such mortgage or security interest, however, Landlord shall 

 15
 

obtain from the mortgagee
or other lender or creditor, a non-disturbance agreement recognizing Tenant’s
rights under this Lease.

22.2   Attornment.   When requested by Landlord, Tenant shall
promptly execute an agreement with any mortgagee or prospective mortgagee, or
purchaser or prospective purchaser, of Landlord’s estate in the Premises, under
which Tenant agrees, in the event that any such person succeeds to the interest
of Landlord under this Lease, to attorn to such person as its landlord, as long
as such person executes such agreement for the purpose of recognizing Tenant’s
rights under this Lease.

22.3   Tenant Financing.   Tenant shall be permitted, from time to
time, to mortgage or otherwise finance its leasehold interest in the Premises.
In no event, however, shall any such mortgage or other financing encumber
Landlord’s fee interest or affect Tenant’s obligations under this Lease.

23.          Estoppel Certificates.

When requested in
writing by either party to this Lease (the “Requesting Party”),
the other party (the “Responding Party”)
shall acknowledge in writing to the Requesting Party, a mortgagee or
prospective mortgagee, a purchaser or prospective purchaser, of the Requesting
Party’s estate, that this Lease is unmodified, in full force and effect, free
of defaults of the Requesting Party and free of defenses against enforceability
(or setting forth any modifications, defaults, disclaimers of the Lease or
defenses against enforceability); that the Responding Party has no outstanding
claims against the Requesting Party (or setting forth the nature and amount of
claims, if any); stating the date to which rent has been paid and the amount of
any advance rental paid; stating the Rent Commencement Date and expiration date
of this Lease; and the status of any other obligation of the Requesting Party
under or with respect to this Lease; it being intended that any such statement
may be relied upon by the Requesting Party, any mortgagee or prospective
mortgagee, or any purchaser or prospective purchaser, of the Requesting Party’s
estate.

24.          Environmental Matters.

24.1   If at any time any Hazardous Materials are
determined to be located on, in or affecting the Land and the presence of such
Hazardous Materials is the result of introduction onto the Land by Landlord,
any condition existing prior to the Effective Date, any migration from
adjoining parcels or from any other cause other than that described in Section
24.4 below (collectively “Landlord’s Responsibility”), then Landlord shall (y)
within thirty (30) days after written notice from Tenant or any governmental
authority of the presence thereof, take or cause to be taken, at its sole
expense, such actions as may be necessary to remediate the contamination caused
by the presence of Hazardous Materials, and (z) within thirty (30) days after
written demand therefor, reimburse Tenant for any amounts expended by Tenant
(i) to remediate the contamination caused by the presence of Hazardous
Materials with respect to the Premises if Landlord has failed to do so after
notice and reasonable opportunity to do so, or (ii) in connection with any
judicial or administrative investigation or proceeding relating thereto,
including, without limitation, reasonable attorneys’ fees, fines, or other
penalty payments. If Landlord fails 

 16
 

to take, or cause to be
taken, such actions as may be required by this Section 24.1 within ninety (90)
days after Tenant’s written demand, Tenant shall have the right to terminate
this Lease upon written notice to Landlord, provided that if the required action
is diligently undertaken by Landlord but cannot be completed within the 90 day
period and Tenant’s use and operation of the Premises is not materially,
adversely affected by the delay, then Landlord shall have such additional time
as may be reasonably necessary to complete the required action. During any
period where Tenant cannot operate from the Premises, then Rent shall abate;
otherwise, no abatement of Rent shall occur during Landlord’s required actions.
In no event shall Landlord be liable to Tenant for any damages resulting from
any closure of Tenant’s business, Tenant’s remedies being limited to abatement
of rent during periods of closure and/or termination of the Lease if Landlord
does not timely provide the required action. Landlord shall indemnify and hold
Tenant harmless from and against any loss or damages arising from Landlord’s
failure to perform Landlord’s Responsibility.

24.2   Landlord will provide Tenant with copies of
all notices Landlord receives from any governmental authority regarding
environmental matters in respect of the Premises.

24.3   During the Term of this Lease, Tenant shall:
(1) keep the Premises (including the Land, surface water, ground water, and
improvements to the Land) free of any contamination by Hazardous Materials resulting
from any act or omission of Tenant; and (2) comply with all Environmental Laws
in its use and occupancy of the Premises; provided, however, that
Tenant shall be permitted to maintain and use on the Premises Hazardous
Materials that are customarily maintained and used by businesses similar to
Tenant as long as such Hazardous Materials are maintained in appropriate
quantities and properly stored and used and otherwise in accordance with all
applicable laws.

24.4   Tenant expressly acknowledges and agrees
that it will reimburse, defend, indemnify and hold harmless Landlord, its
successors, assigns and other parties claiming any interest in the Premises by,
through or under Landlord, from and against any and all liabilities, claims,
damages, penalties, expenditures, losses or charges (including, but not limited
to, all costs of investigation, monitoring, legal fees, remedial response,
removal, restoration or permit acquisition) which may, now or in the future, be
undertaken, suffered, paid, awarded, assessed, or otherwise incurred as the
result of:

(a)           any contamination by Hazardous
Materials existing on, above or under the Premises during the Term that results
from the acts or omissions of Tenant, its subtenants, agents, employees,
contractors, or invitees (including, but not limited to, contaminated soil,
buildings, facilities and/or ground water) or which introduction is not the
result of Landlord Introduction; and

(b)           any investigation, monitoring, clean
up, removal, restoration, remedial response or remedial work with respect to
Hazardous Materials for which Tenant would be liable under (a) above and
reasonably undertaken by or on behalf of Landlord after Landlord has provided
Tenant written notice of the need for such investigation, monitoring, clean up,
removal, restoration, remedial response or remedial work and Tenant has failed
to undertake the appropriate action within a reasonable time.

 17
 

 

24.5   Tenant and Landlord acknowledge and agree
that the expiration or termination of this Lease shall not and does not relieve
or release either party of any legal liability and responsibility (under common
law, statute or regulation) either would otherwise have as tenant or landlord,
respectively, of the Premises under this Section 24, whether by way of damages,
penalties, remedial actions, or otherwise for any adverse effects or
consequences resulting at any time from any contamination by Hazardous
Materials of the soil, facilities, buildings and/or ground waters which existed
on, above or under the Premises during the Term.

25.          Defaults and Remedies.

25.1   Defaults by Tenant.   If Tenant

(a)           defaults in the payment of Annual
Rent and Additional Rent payable under this Lease, and such default continues
for more than ten (10) days after receipt of written notice thereof; or

(b)           defaults in the performance or
observance of any term, covenant or condition to be performed by it hereunder
that may be performed merely by the payment of money and such default is not
rectified within ten (10) days after receipt of written notice thereof; or

(c)           shall allow any insurance policy
required to be carried by it hereunder to lapse or to be cancelled and does not
cause such insurance to be replaced within ten (10) days after receipt of
written notice of such lapse or cancellation from Landlord; or

(d)           defaults in the performance or
observance of any other term, covenant or condition of this Lease on Tenant’s
part to be performed or observed and does not commence to rectify such default
within thirty (30) days after written notice thereof or does not thereafter
diligently complete the rectification thereof, 

then, in any of such
foregoing events, Landlord may, at its option, (i) terminate this Lease and
reenter the Premises or (ii) reenter the Premises without terminating this Lease,
and, using due care, assume custody and control thereof for the purpose of
protecting the Premises and/or for reletting the Premises as agent for Tenant
and such agency shall be deemed as a power coupled with an interest and shall
be irrevocable. In either such event Landlord shall make a reasonable effort to
relet the Premises and shall be entitled to the benefit of all provisions of
the public general laws of Maryland and the public local laws and ordinances of
Baltimore County respecting the summary eviction of tenants in default or
tenants holding over, or respecting proceedings in forcible entry and detainer.
Notwithstanding termination and/or re-entry, Tenant shall remain liable for any
Annual Rent, Additional Rent, and damages (exclusive of consequential damages)
having accrued prior thereto and for any Annual Rent, Additional Rent, and
damages (exclusive of consequential damages) which shall become due thereafter
and shall pay Landlord for all reasonable costs and expenses, including but not
limited to, attorneys’ and brokers’ fees and expenses, paid or incurred by
Landlord in connection with: (1) obtaining possession of the Premises; (2)
removal and storage of Tenant’s or other occupant’s property; (3) care,
maintenance and repair of the Premises while vacant; (4) re-letting the whole
or any 

 18
 

part of the Premises; and
(5) repairing, altering, renovating, partitioning, enlarging, remodeling or
otherwise putting the Premises into condition acceptable to, and reasonably
necessary to obtain new tenants.

25.2   Other Remedies for Tenant
Default.   In addition to the
remedies available to Landlord in the preceding Section 25.1, if Tenant fails
to maintain any insurance required to be maintained by Tenant under this Lease,
or fails to furnish evidence of insurance renewals at the times in this Lease
required, or allows such insurance to lapse or be cancelled, Landlord may
obtain such insurance for Tenant five (5) days following notice from Landlord,
and Tenant shall reimburse Landlord for the cost thereof promptly on demand. If
Tenant defaults in the performance or observance of any term, covenant or
condition, other than the covenant to pay rent, to be performed or observed by
it under this Lease, and such default continues without cure or commencement of
a reasonable effort to cure same for more than thirty (30) days after written
notice thereof, Landlord may take action to rectify such default on Tenant’s
behalf; provided, however, that except in the
case of an emergency, Landlord shall not make any payment or cause the
performance of any act to cure such default without giving Tenant fifteen (15)
days’ notice of Landlord’s intention to do so. Landlord may rectify such
default on Tenant’s behalf immediately and without such notice if immediate
action is reasonably believed to be required in order to avoid injury or damage
to other persons or property (including Landlord’s property). Subject to Tenant’s
security and privacy requirements, Landlord may enter the Premises to rectify
such defaults. All money advanced and costs and expenses incurred by Landlord
in rectifying any default (including Landlord’s reasonable attorney’s fees)
together with interest thereon at the “Prime Rate” announced from time to time
by Carrollton Bank as its Prime Rate plus two percent (2%) per annum from the
date advanced until the date paid by Tenant, shall be repaid by Tenant to
Landlord on demand.

25.3   Late Fee.   In the event that any installment
of Rent is not paid within five (5) days of the due date, Landlord may impose a
late fee equal to five percent (5%) of the amount of the delinquent
installment. Payment of such late fee, if imposed by Landlord, shall be a
condition to Landlord’s obligation to accept any delinquent installment of
Rent. Any late fee shall not be deemed a penalty but a payment to defray the
administrative cost to Landlord of addressing Tenant’s delinquency.

25.4   Payment of Landlord’s
Costs.   If Landlord files an
action against Tenant to collect Annual Rent or Additional Rent payable under
this Lease or any other sum for which Tenant is legally liable to Landlord, and
a judgment is rendered for Landlord with respect thereto, then Tenant shall pay
all reasonable attorney’s fees and out of pocket costs of collection incurred
by Landlord in such action.

25.5   Waiver of Lien.   Landlord
expressly waives any right to a statutory landlord’s lien. Notwithstanding
anything contained in this Lease to the contrary, Landlord shall never have any
property interest in or lien on or right of distraint against any cash, checks,
notes, bonds, securities, passbook, records, or other property held by Tenant
for its customers on the Premises, whether for safekeeping or collateral, and
whether in its vaults, safe deposit boxes, night depository, or safes.

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25.6   Landlord’s Default.   In the event that Landlord
defaults in any of Landlord’s obligations under this Lease that affect Tenant’s
use and occupancy of the Premises, and fails to cure such default within thirty
(30) days after Tenant gives Landlord notice of the Landlord’s default, then
Tenant shall be entitled, but not obligated, to cure Landlord’s default, in
which event upon Tenant’s demand Landlord shall pay Tenant the reasonable
expenses, including reasonable attorneys’ fees, incurred by Tenant in curing
Landlord’s default; provided, however, that except in the case of an emergency,
Tenant shall not make any payment or cause the performance of any act to cure
Landlord’s default without giving Landlord fifteen (15) days’ notice of Tenant’s
intention to do so. Notwithstanding the foregoing, if Landlord’s default is
such that it cannot reasonably be cured within thirty (30) days, then, provided
that Landlord shall commence to cure the default within thrity (30) days after
Tenant gives Landlord notice of the default and diligently pursues the same,
Landlord shall be permitted an additional reasonable period of time in which to
cure the default before Tenant exercises Tenant’s remedies under this Section
25.6.

26.          Bankruptcy or Insolvency.

If any transfer of
Tenant’s interest in the Premises created by this Lease shall be made under
execution or similar legal process, or if a petition is filed by or against
Tenant to adjudicate Tenant a bankrupt or insolvent under any federal or state
law, or if a receiver or trustee shall be appointed for Tenant’s business or
property and such appointment is not vacated within ninety (90) days, or if a
petition is filed by or against Tenant under any provision of federal or state
law for a corporate reorganization of Tenant of an arrangement with its
creditors, of if Tenant makes an assignment for the benefit of its creditors,
or if in any other manner Tenant’s interest under this Lease passes to another
by operation of law (except by merger), then, in any of said events, Tenant
shall be deemed to have committed a material breach of this Lease, and Landlord
may, at its option, terminate this Lease and re-enter the Premises; but
notwithstanding such termination, Tenant shall remain liable for all rent and
damages, suffered or incurred by Landlord.

27.          Miscellaneous Provisions.

27.1   Notices.   All notices from either party to the other
under this Lease shall be sent by telegram or Certified Mail, Return Receipt
Requested, or hand-delivered with a signed receipt. Whenever in this Lease
reference is made to a notice to be given, such notice shall be deemed to have
been given when mailed, wired or hand-delivered to the proper notice address of
the party to be notified; provided that
notices mailed within a time period set forth in the Lease for giving notice
shall be deemed given within such time period, if mailed within such time
period. Notices to Landlord shall be addressed to Landlord’s Notice Address.
Notices to Tenant shall be addressed to Tenant’s Notice Address.

27.2   Successors and Assigns.   This Lease and covenants, terms
and conditions herein contained shall inure to the benefit of and be binding
upon Landlord, its successors and assigns, and shall be binding upon and inure
to the benefit of Tenant and its permitted successors and assigns. As used
herein the term “Tenant” includes its permitted successors and assigns, and the
term “Landlord” includes its successors and assigns.

 20
 

 

27.3   Effect of
Termination.   Except as
specifically provided elsewhere in this Lease, if this Lease is terminated for
any reason other than default of Tenant, all liabilities of the parties shall
be adjusted as of the effective date of termination. Any termination hereof by
reason of a default of the Tenant shall not affect any obligation or liability
of Tenant under this Lease.

27.4   Date of Termination.   If this Lease is terminated under
any provision hereof, the parties shall, at the request of either, stipulate
the termination date in a written agreement to be executed and acknowledged by
the parties.

27.5   Severability.   If any term, covenant or
condition of this Lease or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Lease, or the application of such term, covenant or condition to
persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant or
condition of this Lease shall be valid and be enforceable to the fullest extent
permitted by law.

27.6   Final Agreement.   This Lease contains the final and
entire agreement between the parties hereto. Neither Landlord nor Tenant shall
have any obligation not expressly set forth herein; and neither party shall be
bound by any promises, conditions or representations prior to the date hereof
which are not expressly set forth therein.

27.7   Governing Law.   The parties agree that this Lease shall be
construed in accordance with the Laws of the State of Maryland.

27.8   Liability of Landlord.   If Landlord or any successor in interest to
Landlord shall be an individual, joint venture, tenancy in common, firm or
partnership, general or limited, there shall be no personal liability on such
individual, or the members of such firm, partnership or joint venture with
respect to any of the provisions of this Lease, any obligation arising
therefrom or in connection therewith. In such event, Tenant shall look solely
to the equity of the then owner of Landlord’s interest in the Center for the satisfaction
of any remedies of Tenant in the event of a breach by the Landlord of any of
its obligations hereunder.

27.9   Brokers.   Tenant warrants that it employed no broker
or agent concerning the renting of the Premises. Similarly, Landlord warrants
that there was no broker or agent acting on behalf of Landlord and instrumental
in consummating this Lease. Each party shall indemnify and hold harmless the
other party from and against any claims for other brokers or other commissions
arising by reason of a breach by such party of the foregoing warranty.

27.10   No Joint Venture.   Nothing contained in this Lease
shall be deemed to give Landlord any interest, control or discretion in the
operation of Tenant’s business on the Premises and nothing contained in this
Lease shall be construed to be or to create a partnership or joint venture
between Landlord and Tenant.

 21
 

 

27.11   Recording.   All costs of recording this Lease, or a
short form thereof, if it is recorded (including documentary stamps and
transfer taxes), shall be borne by the party desiring recordation,
notwithstanding any statute to the contrary.

27.11   Force Majeure.   If
Landlord or Tenant shall be delayed, hindered in or prevented from the
performance of any act or obligation required under this Lease (other than
Tenant’s obligation to pay Annual Rent and Additional Rent hereunder) by reason
of acts of God, strikes, lockouts, labor troubles or disputes, inability to
procure or shortage of materials or labor, failure of power or utilities, delay
in transportation, fire, vandalism, accident, flood, severe weather, other
casualty, governmental requirements (including mandated changes in the Plans or
the Tenant Improvements resulting from changes in pertinent governmental
requirements or interpretations thereof), riot, insurrection, civil commotion,
sabotage, explosion, war, natural or local emergency, acts or omissions of
others, or other reasons of a similar or dissimilar nature not solely the fault
of, or under the exclusive control of, the delayed party, then performance of
such act or obligation shall be excused for the period of the delay and the
period for the performance of any such act or obligation shall be extended for
the period equivalent to the period of such delay.

27.12   Landlord’s Consent.   Unless
otherwise provided in this Lease, whenever Landlord’s consent, approval or
other action is required under the terms of this Lease, such consent, approval
or action shall be subject to Landlord’s reasonable judgment or discretion
exercised in good faith and shall be delivered in writing and, accordingly,
such approval will not be unreasonably withheld, delayed or conditioned by
Landlord.

27.13   Time of Essence.   Time
is of the essence with respect to the performance of every covenant and
condition of this Lease.

27.14   Waiver of Jury Trial.   LANDLORD
AND TENANT IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER AGAINST THE OTHER (WHETHER
IN CONTRACT OR TORT) ON ANY MATTER ARISING OUT OF OR RELATING IN ANY WAY TO
THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT OR TENANT’S USE OR
OCCUPANCY OF THE PREMISES.

 

 22

IN WITNESS
WHEREOF, the parties hereto have executed this Lease under their respective
hands and seals as of the day and year first above written.

	
  ATTEST:

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  SCOTTS CORNER LLLP, a Maryland limited

  liability limited partnership

  
	
   

  	
   

  
	
  /s/ ILLEGIBLE

  	
   

  	
  By:

  	
   /s/ Daniel J. Feeley

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  Daniel J. Feeley

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  CARROLLTON BANK, a Maryland state

  chartered commercial bank

  
	
   

  	
   

  
	
  /s/ Kim John

  	
   

  	
  By: 

  	
  /s/ Robert A. Altieri 

  	
  (SEAL)

  
	
   

  	
   

  	
  Robert A. Altieri, President

  	
   

  

 

 23
 

 

	
  STATE OF MARYLAND

  	
  )

  	
   

  
	
   

  	
  ) SS:

  	
   

  
	
  COUNTY OF Baltimore

  	
  )

  	
   

  

 

I HEREBY CERTIFY
that on this 13th day of January, 2006, before me, the undersigned officer,
personally appeared Daniel J. Feeley, who acknowledged himself to be the
General Partner of Scotts Corner LLLP, a Maryland limited liability limited
partnership, and that he, in such capacity, being authorized to do so, executed
the foregoing instrument for the purposes therein contained, by signing the
name of the partnership, as General Partner.

IN WITNESS WHEREOF
I hereunto set my hand and Notarial Seal.

	
   

  	
   

  	
  /s/ ILLEGIBLE

  	
   

  
	
   

  	
   

  	
  Notary Public

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  My Commission expires:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12/01/06

  	
  [SEAL]

  	
   

  	
   

  

 

 

	
  STATE OF MARYLAND

  	
  )

  	
   

  
	
   

  	
  ) SS:

  	
   

  
	
  COUNTY OF Baltimore

  	
  )

  	
   

  

 

I HEREBY CERTIFY
that on this 5th day of January, 2006, before me, the undersigned officer,
personally appeared Robert A. Altieri, who acknowledged himself to be the
President of Carrollton Bank, a Maryland state chartered commercial bank, and
that he, in such capacity, being authorized to do so, executed the foregoing
instrument for the purposes therein contained, by signing the name of the bank,
as President.

IN WITNESS WHEREOF
I hereunto set my hand and Notarial Seal.

	
  

  	
   

  	
  /s/ ILLEGIBLE

  	
   

  
	
   

  	
   

  	
  Notary Public

  	
   

  

 

My Commission expires:  7-1-06

 24

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