Document:

Exhibit 10.9

 

CHEVRON PHILLIPS CHEMICAL
COMPANY LP

EXECUTIVE
FINANCIAL PLANNING PROGRAM

 

SECTION 1 - PURPOSE

 

The purpose of the Chevron Phillips
Chemical Company LP Executive Financial Planning Program is to assist
executives with expenses incurred for financial planning.

 

SECTION 2 - DEFINITIONS

 

The
following defined terms are capitalized throughout the text of this document
when they are intended to have the meaning set forth in the definitions below:

 

2.01                           “Annual
Maximum Benefit” means the maximum amount that the Company will pay for
expenses incurred during a given calendar year for Services provided to a
Participant by a Provider, as more particularly described in Exhibit 1.

 

2.02                           “Company” means Chevron Phillips
Chemical Company LP and any successor thereto.

 

2.03                           “Disability”
means disability as determined under the Chevron Phillips Chemical Company LP
Long-Term Disability Plan.

 

2.04                           “Participant” means any employee who
meets the requirements set forth in Section 3 of the Program.

 

2.05                           “Program” means the Chevron Phillips
Chemical Company Executive Financial Planning Program, as set forth in this
document and as amended from time to time.

 

2.06                           “Provider”
means a person, firm, or other entity selected by a Participant from time to
time to provide Services; provided, however, that in no event may said Provider
be the Company’s current general auditor without the specific written
authorization of the Company’s Chief Financial Officer.

 

2.07                           “Retirement” means
an Employee’s termination of service in connection with the attainment of any
applicable early retirement age or normal retirement age as defined in the
Chevron Phillips Chemical Company LP Retirement Plan.

 

2.08                           “Services”
means the following financial planning services:

 

(i)                                    Financial
Statement Preparation;

(ii)                                 Cash
Flow Planning and Debt Management;

(iii)                              Income
Tax Planning;

(iv)                             Investment
Planning;

 

1

 

(v)                                Life
and Disability Insurance Planning;

(vi)                             Estate
and Gift Planning;

(vii)                          Retirement
Planning;

(viii)                       Income
Tax preparation;

(ix)                               Such
other services as the Company may elect from time to time; and

(x)                                  Legal
services associated with the services listed above.

 

Wherever appropriate
as used herein, the masculine designation includes the feminine and the
singular includes the plural.

 

SECTION 3 - ELIGIBILITY

 

Regular, full-time,
salaried employees of the Company who are classified as Salary Grade 93 and
higher are eligible to participate in the Program.  Participation in the Program will normally
continue through the calendar year the Participant’s employment status changes due to Retirement or
Disability.  If the Participant’s
employment status changes during the calendar year due to reasons other than
Retirement or Disability, Participant’s participation in the Program will
terminate as of the effective date of Participant’s employment status change,
in which event the Company will be responsible for payment of any expenses for
Services provided to the Participant through such date up to the Participant’s
Annual Maximum Benefit.

 

SECTION 4 – GENERAL OPERATION OF THE PROGRAM

 

(a)                                  Under
the Program, a Participant may select a Provider to provide Services. More than
one Provider may be used in a given calendar year; provided, however, the
maximum amount that the Company will pay for all expenses incurred by a
Participant for all Services provided during a calendar year shall not exceed
the Maximum Annual Benefit.  Legal
services associated with Services identified in paragraphs (i) through (ix) of Section
2.08 may be provided by a different Provider than the Provider providing said
Services.

 

(b)                                 The
Company will pay the Provider up to the Annual Maximum Benefit for expenses
incurred by the Participant for such Services provided during the calendar year
in question.  The Participant will be
responsible for any expenses for Services obtained during the calendar year in
question that exceed the Participant’s Annual Maximum Benefit for said calendar
year.  Such excess expenses are not
eligible for carryover.  Likewise, if Participant has not fully
utilized the Participant’s Annual Maximum Benefit for the calendar year in
question by the end of said calendar year, the balance of any Annual Maximum
Benefit remaining will be forfeited.

 

2

 

(c)                                  Upon
selection of a Provider, the Participant will inform the Provider of
Participant’s Maximum Annual Benefit and the Services which are subject to
payment by the Company under the Program. 
The Provider shall invoice Participant, with a copy to the Company, for
the Services provided.  More than one
invoice may be submitted during a given calendar year. All invoices for
Services performed during a calendar year must be submitted by January 31 of
the following calendar year; invoices submitted after January 31 will not be
eligible for payment by the Company. 
Each invoice must describe the Services provided and identify the period
in which such Services are provided.  
The Company will immediately notify the Participant when the Participant
has met his or her Maximum Annual Benefit for the calendar year in question.

 

SECTION 5 – GENERAL ADMINISTRATION OF THE PROGRAM

 

5.01                        Administration
Authority - The overall responsibility for the administration and
control of this Program resides with the Compensation Committee of the Board of
Directors of Chevron Phillips Chemical Company LLC.  The Compensation Committee shall delegate to
the President and Chief Executive Officer of the Company (“CEO”) the authority
and responsibility for the general day to day administration and operation of
the Program, including

 

•                  the authority to
issue and implement such rules as the CEO deems appropriate to administer the
Program;

 

•                  the authority to
interpret Program provisions and make factual determinations under the Program
including the power to determine eligibility, and the right to remedy
ambiguities, inconsistencies or omissions in Program provisions;

 

•                  the authority to
grant exceptions to the Program (although not to amend the Program or its
terms), provided the cost to the Company as a result does not exceed 10% of the
annual cost of the Program; and

 

•                  the authority to
appoint or designate such person or persons the CEO deems necessary or
advisable to carry out administrative duties under the Program.

 

Subject to the authority of the Compensation
Committee, any decision by the CEO under or with respect to the Program shall
be final, binding and conclusive on all persons and parties concerned.  However, the CEO shall not have the authority
to interpret or grant an exception to the Program in matters pertaining to
himself.

 

3

 

The Company shall have no liability with respect to
the Services provided to Participants and each Participant shall release the
Company, its subsidiaries and affiliates and their officers, directors and
employees for all liabilities that arise from or in connection with the
Services.

 

5.02                        Amendment
and Termination – The Company, by action of the Board of Directors of
Chevron Phillips Chemical Company LLC or the Compensation Committee, may amend
or terminate the Program at any time, provided, however, that no such amendment
or termination shall adversely affect a Participant’s right to payment for
Services rendered to him prior to such amendment or termination.

 

5.03                        Payments
– Company will pay all benefits arising under this Program and all costs,
charges and expenses relating thereto from the general assets of the Company.

 

5.04                        Status
of Program - The benefits under this Program shall not be funded, but
shall constitute liabilities by the Company payable when due.

 

5.05                        Non-guarantee
of Employment - Nothing contained in this Program shall be construed as
a contract of employment between the Company and any Participant, or as a right
of any Participant to be continued in employment of the Company, or as a
limitation on the right of the Company to discharge any of its employees, with
or without cause or notice.

 

5.06                        Applicable
Law - All questions pertaining to the construction, validity and effect
of the Program shall be determined in accordance with the laws of the United
States and, to the extent not preempted by such laws, by the laws of the State
of Texas.

 

 

	
  Chevron Phillips Chemical Company LP

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  James L. Gallogly

  
	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
				

 

4

 

EXHIBIT I

 

The Maximum Annual
Benefit to be provided under the Program is:

 

•                  $10,000 per
calendar year for Participants who are classified in Salary Grade 99.

 

•                  $5,000 per
calendar year for Participants who are classified in Salary Grades 95-97;
provided, however, that for the first calendar year of participation and the
last calendar year of participation upon Retirement or Disability only, the
Maximum Annual Benefit is $10,000.

 

•                  $3,000 per
calendar year for all Participants who are classified in Salary Grades 93-94;
provided, however, that for the first calendar year of participation and the
last calendar year of participation upon Retirement or Disability only, the
Maximum Annual Benefit is $6,000.

 

5Exhibit 10.1

 

GROUND LEASE

 

BETWEEN

 

HICKORY CROSSING, LLC

as Landlord

 

and

 

CARROLLTON BANK

as Tenant

 

Date: November 4, 2003

 

Property:

 

Hickory Crossing

Harford County, Maryland

 

 

Table of Contents

 

	
  1.

  	
  Definitions

  	
   

  
	
  2.

  	
  Preconditions
  to Tenant’s Lease Obligations

  	
   

  
	
  3.

  	
  Lease Term

  	
   

  
	
  4.

  	
  Landlord’s
  Construction and Other Site Obligations

  	
   

  
	
  5.

  	
  Tenant’s Construction
  Obligations

  	
   

  
	
  6.

  	
  Use
  of Property

  	
   

  
	
  7.

  	
  Limitation on
  Multiple Banking Uses

  	
   

  
	
  8.

  	
  Rent

  	
   

  
	
  9.

  	
  Common Elements
  Operating Costs

  	
   

  
	
  10.

  	
  Taxes and Assessments

  	
   

  
	
  11.

  	
  Utilities

  	
   

  
	
  12.

  	
  Maintenance

  	
   

  
	
  13.

  	
  Alterations

  	
   

  
	
  14.

  	
  Trade
  Fixtures

  	
   

  
	
  15.

  	
  Signs

  	
   

  
	
  16.

  	
  Landlord’s Access

  	
   

  
	
  17.

  	
  Rules and Regulations

  	
   

  
	
  18.

  	
  Indemnification

  	
   

  
	
  19.

  	
  Insurance and Casualty

  	
   

  
	
  20.

  	
  Eminent
  Domain

  	
   

  
	
  21.

  	
  Assignment and Subletting

  	
   

  
	
  22.

  	
  Mechanics’ Liens and
  Other Liens

  	
   

  
	
  23.

  	
  Quiet
  Enjoyment

  	
   

  
	
  24.

  	
  Landlord’s
  Right to Mortgage; Attornment

  	
   

  
	
  25.

  	
  Estoppel Certificates

  	
   

  
	
  26.

  	
  Acts of Other Tenants

  	
   

  
	
  27.

  	
  Environmental Matters

  	
   

  
	
  28.

  	
  Defaults and Remedies

  	
   

  
	
  29.

  	
  Bankruptcy or Insolvency

  	
   

  
	
  30.

  	
  Miscellaneous Provisions

  	
   

  

 

 

GROUND LEASE

 

THIS LEASE (the “Lease”), dated 11/4/2003, is made and entered into by and
between HICKORY CROSSING, LLC, a Maryland limited liability company (the “Landlord”) having an office at 14 Back River Neck Road,
Baltimore, Maryland 21221, and CARROLLTON BANK, a Maryland state chartered
commercial bank (the “Tenant”) having
an office at 344 North Charles Street, Suite 300, Baltimore, Maryland
21201-4301

 

INTRODUCTORY STATEMENT

 

Landlord is the owner of
certain unimproved real property containing approximately 4,554 +/- acres, located in Hickory, Harford
County, Maryland, which is identified as Lots 3, 5, 6 and 7, and outlined in
green (the “Commercial Center”) on the Revised
Final Plat, Division of Lot 3, Formerly the Land of A-Blair Syndicate, dated March 7,
2003, (the “Plat”) as prepared by Frederick Ward & Associates (“Landlord’s Engineer”), which Plat is attached hereto as Exhibit
A and incorporated herein by reference. Also attached hereto as Exhibit
A-1 is the Conceptual Development Plan for the Property (the “Conceptual Development Plan”), prepared by Landlord’s
Engineer.

 

Landlord desires to lease to
Tenant and Tenant desires to rent from Landlord a portion of the Commercial
Center identified as Lot 3 on the Plat, containing approximately 38,515 +/- square
feet of land area and approximately .82 +/- acres as outlined in red on the
Plat (the “Property”) 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 Property; together with the right to use the Common Elements (as
hereinafter defined) in common with others 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 8.2. 

 

1.2.                              Annual Rent –

 

 

	
  Applicable Portion of Term

  	
   

  	
  Annual Rent

  	
   

  	
  Monthly

  Installment

  (Annual + 12)

  	
   

  
	
  Beginning

  	
   

  	
  Ending

  	
   

  
	
  Rent Commencement
  Date (“RCD”)

  	
   

  	
  5th
  anniversary of RCD

  	
   

  	
  $

  	
  95,000.00

  	
   

  	
  $

  	
  7,916.67

  	
   

  
	
  5th
  anniversary of RCD

  	
   

  	
  10th
  anniversary of RCD

  	
   

  	
  $

  	
  104,500.00 

  	
   

  	
  $

  	
  8,708.33

  	
   

  
	
  10th
  anniversary of RCD

  	
   

  	
  15th
  anniversary of RCD

  	
   

  	
  $

  	
  114,950.00

  	
   

  	
  $

  	
  9,579.17

  	
   

  
	
  15th
  anniversary of RCD

  	
   

  	
  20th
  anniversary of RCD

  	
   

  	
  $

  	
  126,445.00

  	
   

  	
  $

  	
  10,537.08

  	
   

  
	
  First Extension Term, if exercised

  	
   

  	
  $

  	
  139,089.50

  	
   

  	
  $

  	
  11,590,79

  	
   

  
	
  Second Extension Term, if exercised

  	
   

  	
  $

  	
  152,998.45

  	
   

  	
  $

  	
  12,749.87

  	
   

  
	
  Third Extension Term, if
  exercised

  	
   

  	
  $

  	
  168,298.30

  	
   

  	
  $

  	
  14,024.86

  	
   

  
	
  Fourth Extension Term, if
  exercised

  	
   

  	
  $

  	
  185,128.13

  	
   

  	
  $

  	
  15,427.34

  	
   

  
											

 

 

 

 

1.3.                              Building - refers to the
one-story masonry building of approximately [Illegible] +/- square feet to be
constructed by Tenant at its cost on the Property, together with all alterations,
additions, improvements, repairs, restorations and replacements thereof.

 

1.4.                              Commencement Date - the
date of execution of this Lease by Landlord and Tenant.

 

1.5.                              Common Elements - The two (2)
pylon signs (and the land immediately surrounding the same) to be provided and
maintained by Landlord for the benefit of the Commercial Center.

 

1.6.                              Common Elements Operating
Costs - See Section 9.2.

 

1.7.                              Environmental Laws - all applicable federal, state, or
local law, ordinance, or regulation, as may be amended from time to time,
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.

 

1.8.                              Extension Term - Sec Section 3.2.

 

1.9.          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.

 

1.10.                        Initial Term - See Section 3.1.

 

1.11.                        Landlord’s Delivery Date - the date on which Landlord delivers the Property to Tenant following
substantial completion of Landlord’s Land Site Improvements.
Landlord’s Engineer shall notify Tenant of such date in writing and such
notification shall be conclusive in the absence of bad faith or fraud.

 

1.12.                        Landlord’s Land Site Improvements - those improvements, more particularly
described in Exhibit B attached hereto and incorporated herein by
reference, to be constructed by Landlord on or adjacent to the Property in
accordance with the terms and conditions of this Lease.

 

2

 

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

 

Hickory Crossing, LLC 

c/o Kirk A. Salvo, Manager 

14 Back River Neck Road

Baltimore, Maryland 21221

 

With a Copy to:

 

David H. Cole, Esquire

Law Office of Curtis C. Coon,
LLC

305 West Chesapeake Avenue - Suite
105

Towson, Maryland 21204

 

1.14.                        Landlord's Payment Address - the following address for rent payments or such other address as
Landlord may designate in writing from time to time:

 

Hickory Crossing, LLC 

14 Back River Neck Road

Baltimore, Maryland 21221

 

1.15.                        Landlord’s Property Site Improvements - the common pylon signs now or hereafter provided or constructed by
Landlord that serve the Commercial Center.

 

1.16.                        Market Area - the
greater Harford County, Maryland area.

 

1.17.                        Permitted Use - any
lawful purpose subject to applicable zoning laws, provided, however, that in no
event will Tenant, its successors, affiliates and assigns be permitted to use
all or any portion of the Property for any of the following uses: (a)
convenience store, delicatessen, dairy store, coffee shop, or coffee bar, bagel
store, bakery, sandwich store selling cold sandwiches (such as a Subway), donut
or similar shop, or a retail gasoline dispensing facility; (b) the sale of auto
parts, auto accessories and/or auto supplies; (c) a drug store or business
which sells or dispenses prescription drugs or for any collateral use (e.g.
parking, drainage, or service drives) in support of a drug store or a business
which serves or dispenses prescription drugs; (d) any use that is prohibited by
a restrictive covenant (now or hereafter existing) contained in a separate
lease or signed letter of intent for all or any portion of the Commercial
Center between Landlord and another tenant, or prospective tenant, as the
case may be; and (c) any other then existing uses by other tenants, sublessees,
licensees or occupants within the Commercial Center.  In no event shall Tenant be precluded from
using the Property for all banking, residential mortgage lending and related
regulatorily approved financial services permissible for banks and
bank-affiliated companies; provided, however, that such related financial
services do not violate any of the prohibited uses set forth in sections
(a)-(e).   If both Tenant and Landlord
wish to provide a competing regulatorily approved related financial service,
then the person first providing such service within the Commercial Center shall
be entitled to exclusively provide such service within the Commercial Center.

 

3

 

1.18.                        Regulatory Approval -
the regulatory approval that Tenant is required to obtain from all applicable
Federal and State of Maryland regulatory bodies in order to operate a branch
bank office at the Property.

 

1.19.                        Rent Commencement Date
- the earlier to occur of

 

a)                                      The later of:

 

1)                         One Hundred Twenty (120) days after
Commencement Date; or

 

2)                         One Hundred Twenty (120) days after Landlord’s
Delivery Date; and

 

b)                                     The date Tenant opens for business to the
public at the Property.

 

1.20.                        Tenant Improvements -
include the Building, sidewalks and curbs, building lighting fixtures and
conduits, utility connections (including, without limitation, cable connections),
paved parking and driveways, road gutters and landscaping on the Property, and
all other improvements necessary for Tenant’s use of the Property (other than
Landlord’s Land Site Improvements and Landlord’s Property Site Improvements)
now or hereafter constructed on the Property by Tenant in the
approximate location shown on Exhibit A-l.

 

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

 

Carrollton Bank

344 North Charles Street -
Suite 300

Baltimore, Maryland 21201-4301

Attention: Robert A. Altieri,
President

 

With a copy to:

 

William C, Rogers, Jr.,
Esquire

Rogers, Moore & Rogers

6 South Calvert Street

Baltimore, Maryland 21202

 

1.22.                        Term - the Initial Term
or the applicable Extension Term, whichever is then in effect.

 

2.             Preconditions to Tenant’s Lease
Obligations.

 

2.1.                              Tenant’s obligations
under this Lease shall be conditioned upon the following:

 

4

 

(a)                                  Tenant may, but shall not be obligated to, have a title report prepared for the
Property. If such title report indicates that Landlord is unable to convey a
leasehold interest in the Property reasonably acceptable to Tenant, Tenant may
terminate this Lease upon written notice to Landlord within one hundred twenty
(120) days after the Commencement Date. If Tenant does not elect to terminate
this Lease upon written notice to Landlord within such one hundred twenty (120)
day period, this precondition will be deemed waived.

 

(b)                                 Tenant may, but shall not be obligated to,
have a survey of the Property prepared at Tenant’s
sole cost and expense by a surveyor of Tenant’s choice within
one hundred twenty (120) days after the Commencement Date. If such survey shows
encroachments onto or from the Property, violations or restrictions of record,
boundary line conflicts, or other information that Tenant reasonably finds
objectionable, then Tenant may terminate this upon giving written notice to
Landlord within one hundred twenty (120) days after the Commencement Date. If
Tenant does not elect to terminate this Lease upon written notice to Landlord
within such one hundred twenty (120) day period, this precondition shall be
deemed waived.

 

(c)                                  Tenant may, but shall not be obligated to,
commission an environmental assessment of the Property, which assessment shall
be completed within one hundred twenty (120) days after the Commencement Date.
If the assessment indicates the presence of any Hazardous Materials or if the
assessment indicates that further assessment is reasonably warranted due to the
possible presence of Hazardous Materials, Tenant may terminate this Lease upon
giving written notice to Landlord within one hundred twenty (120) days after
the Commencement Date. If Tenant does not elect to terminate this Lease upon
written notice to Landlord within such one hundred twenty (120) day period,
this precondition shall be deemed waived.

 

(d)                                 Tenant may, but shall not he obligated to,
have soil borings prepared for the Property within one hundred twenty (120)
days after the Commencement Date. If such soil borings indicate that Tenant is
unable to construct and use the Tenant Improvements on the Land as intended to
be designed by Tenant and the Tenant Improvements cannot be redesigned to
Tenant’s satisfaction to accommodate the soil conditions, Tenant may terminate
this Lease upon written notice to Landlord within one hundred twenty (120) days
after the Commencement Date. If Tenant does not elect to terminate this Lease
upon written notice to Landlord within such one hundred twenty (120) day
period, this precondition shall he deemed waived.

 

(e)                                  Tenant, at its sole cost and expense, shall
file for and thereafter diligently pursue Regulatory Approval, provided,
however, that Regulatory Approval shall be given, if at all, within one hundred
twenty (120) days after the Commencement Date. 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. The foregoing
notwithstanding, if Tenant has not received Regulatory Approval within one

 

5

hundred (120) days following the Commencement Date, this Lease will be
deemed terminated unless the parties otherwise agree.

 

2.2.                              Tenant is hereby granted the right and privilege to enter upon the Property
and to perform such tests and take such samples and measurements as required to satisfy the conditions precedent set
forth in this Section 2; provided that Tenant
shall restore the Property to its
condition prior to Tenant’s entry thereon; and provided
further that Tenant shall indemnify and hold Landlord harmless for
any claim of loss or damage arising out of Tenant’s entry onto the
Property.  Tenant’s obligations hereunder
will survive termination of this Lease. 
Tenant’s entry upon the Property under this Section 2.2 shall not
be deemed possession by the Tenant.

 

2.3.                              If Tenant gives written termination notice to Landlord in a timely
manner because of any item not acceptable to it under Section 2.1 above, this Lease shall be of no further
force or effect, and neither party shall have any further rights or obligations
hereunder except those rights or obligations that expressly survive termination
of this Lease.

 

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.                              Extensions.     Provided Tenant is not then in monetary or
material non-monetary default of this Lease beyond any applicable cure period,
Tenant may extend this Lease for four (4) additional periods of five (5) years
each (each an “Extension Term”) on the same terms
and conditions as provided in this Lease, by delivering written notice of the
exercise thereof to Landlord not later than six (6) months before the
expiration of the then current Term. On or before the commencement date of the
Renewal Term in question, at either party’s request, Landlord and Tenant shall
execute an amendment to this Lease confirming the Extension Term on the same
terms and conditions as provided in this Lease, except as follows:

 

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

 

(b)                                 Landlord shall lease to Tenant the Property in its then-current condition.

 

Tenant’s rights under this Section 3.2 shall terminate if (i) this
Lease or Tenant’s right to possession of the Property 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.

 

6

 

3.3                                 Any holding over by Tenant after the
expiration of the Initial Term or Extension Term, as applicable, without the
consent of Landlord, shall be construed to be a tenancy from month-to-month at
one and one-half (1.5) times the Annual Rent herein specified pro-rated on a
monthly basis, and shall otherwise he on the terms and conditions herein
specified, so far as applicable.

 

4.                                      Landlord’s Construction and
Other Site Obligations.

 

4.1.                              Landlord has subjected its interest in the Property to the Declaration
of Covenants, Conditions and Restrictions (substantially in the form attached
hereto as Exhibit C, the “Declaration”).
The parties acknowledge and agree that this Lease is subject to the terms,
provisions and conditions of the Declaration, as amended.  Provided Tenant is not in default of any of
its monetary or non-monetary obligations beyond any applicable cure period,
Landlord shall not modify or amend the Declaration so as to limit Tenant’s
material rights or increase any of Tenant’s material obligations without the
Tenant’s consent during the Term, which consent shall not be unreasonably
withheld or delayed.

 

4.2.                              The Final Development Plan to be attached as Exhibit A-2, depicts
the site improvements to be constructed by both Landlord and Tenant.  Landlord shall make application to the appropriate
governmental agencies, quasi-governmental agencies and utility companies for
site plan approval and all other permits and approvals necessary to commerce
construction of Landlord’s Property Site Improvements and Landlord’s Land Site
Improvements. Landlord shall use commercially reasonable efforts to obtain such
permits, and to substantially complete the construction of Landlord’s Land Site
Improvements within one (1) year following the Commencement Date.

 

4.3.                              Substantial  Completion.     For all purposes of this Lease, the phrase “substantial completion of Landlord’s Land Site Improvements”
shall be deemed to have occurred when Landlord’s Engineer furnishes a
certificate to Landlord and Tenant certifying that the Landlord’s Land Site
Improvements are sufficiently complete to enable Tenant to commence
construction of Tenant Improvements, which certification shall be conclusive,
in the absence of bad faith or fraud.

 

4.4.                              Termination.     If Landlord’s Delivery Date does not occur on
or before one (1) year following the Commencement Date, the date may be
extended upon written notice by Landlord up to one hundred eighty (180) days,
for any delays caused by force majeure (as defined herein).  If Landlord’s Delivery Date does not occur
within such time period (as may be extended), Tenant shall have the right to
terminate this Lease by notice to Landlord sent any time before Landlord’s
Delivery Date (as may be extended) occurs. In such event, neither party shall
have any further rights or obligations hereunder except for those obligations
that expressly survive termination.

 

5.                                      Tenant’s Construction Obligations.

 

5.1.                              General.   Tenant shall construct or cause to be constructed at Tenant’s sole cost
and expense the Tenant Improvements in a good and workmanlike manner.   All

 

7

 

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 shall be subject
to Landlord’s prior written approval, which approval shall not be unreasonably
withheld or delayed. The foregoing notwithstanding, Landlord’s approval will
not be required for changes in the construction Plans by Tenant, the estimated cost
of which does not exceed Twenty-Five Thousand ($25,000.00) Dollars. Tenant
shall perform its work without interfering with other construction on the
Property or within the Commercial Center and shall cooperate with the
contractors of Landlord and other tenants within the Commercial Center. Tenant
shall bear all risk of theft, loss or damage to its personal property,
including building materials stored on the Property or incorporated into the
Tenant Improvements, from whatsoever cause, unless such loss or damage is due
to the negligence or willful misconduct of Landlord.

 

5.2.                              Timing   Within ninety (90) days after the Commencement Date, 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 objects to Tenant’s Plans,
Tenant shall revise the Plans in an effort to respond to Landlord’s objections
and resubmit the Plans within twenty (20) calendar days thereafter. If Landlord
does not respond or object within ten (10) days after Tenant’s initial
submission of the Plans or within five (5) Business Days after Tenant’s
resubmission of the Plans, the Plans will be deemed approved. Within ten (10)
days after (i) the Plans for the Tenant Improvements having been approved or
deemed approved, Tenant shall make application to the applicable jurisdiction
for a building permit (the “Tenant’s Building Permit”)
and to all other appropriate
governmental agencies, quasi-governmental agencies and utility companies for
all permits and approval necessary to construct the Tenant Improvements. Tenant
shall substantially complete construction of the Tenant Improvements within one
hundred twenty (120) days after Landlord’s Delivery Date. As used herein, the
phrase “substantial completion of the Tenant Improvements”
shall mean that construction of the Tenant Improvements is sufficiently
complete to permit Tenant to occupy and use the Property for Tenant’s business
operations notwithstanding the existence of certain minor items that are
incomplete or unfinished (i.e., “punch list items”). Tenant hereby grants Landlord permission
to assist Tenant with regard to the processing of Tenant’s applications for the
Tenant’s Building Permit and all other permits or approvals, except the
Regulatory Approval, which shall be the sole responsibility of Tenant.

 

6.                                      Use of Property.

 

6.1.                              Landlord covenants as follows:

 

(a)                                  public water (excluding Tenant’s water meter),
electric power, and sewer service
exist or will be stubbed by Landlord to a central point located along Hoagie
Drive, contiguous to the Property;

 

(b)                                 appropriate storm water management serves or
will serve the Property and adequately sized storm drain
pipe will be provided to the lease line of the Property to satisfy Tenant’s
storm water management and drainage requirements;

 

8

 

(c)                                  the Property is zoned as B-3 and a branch bank
with drive-in facilities is a permitted use in this zoning classfication;

 

(d)                                 Landlord has not acquired or received any
information that would raise reasonable doubt about the right of Tenant to use
the Property for a branch bank including a drive-in facility; and

 

(e)                                  Landlord has not and will not take any action
to request a change in the zoning of the Property that would preclude the use
of the Property for a branch bank including a drive-in facility.

 

6.2.                              Tenant may initially use the Property for the Permitted Use.

 

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 the
Market Area and of the Landlord’s insurers, pertaining to the Property, the
improvements thereon or their use, occupancy or maintenance.   Landlord shall promptly comply with all
laws, rules, regulations, requirements, notices of governmental bodies and
public authorities and the reasonable recommendation of the local board of fire
underwriters rating bureau, or other fire insurance rating organization for the
Market Area pertaining to the Common Elements.

 

6.4.                              Tenant will comply with all provisions of the Americans With Disabilities Act (the “ADA”)
with respect to the Property, and Landlord shall comply with all provisions of
the ADA, if any, with respect to the Common Elements.

 

7.                                      Limitation on Multiple Banking Uses.

 

7.1.                              Except as otherwise specifically set forth in this Lease, from and after
the date of this Lease and for so long thereafter as Tenant is not in default beyond any applicable cure period hereunder,
Landlord shall not lease or sell space in the Commercial Center to another
commercial bank, savings bank, savings and loan association, credit union,
residential mortgage operation, or regulatorily approved related financial
service (the “Use Restriction”); provided, however, that if Tenant ceases
to use the entire Property, excluding any expressly permitted license or
sublease of a portion thereof, for a period in excess of six (6) consecutive
months (not including time used for repairing a casualty) for commercial
banking, residential mortgage lending and regulatorily approved related
financial services permissible for banks and bank-affiliated companies, the Use
Restriction shall terminate.   The Use
Restriction shall not include automated teller machines installed in the
interior of other buildings of the Commercial Center by other owners or tenants
of such buildings.

 

7.2.                              Landlord and Tenant agree that in the event Landlord violates the
foregoing Use Restriction, Tenant’s remedies shall include injunctive relief
and/or actual damages and any other remedy available to it at law or in equity.
The foregoing notwithstanding, in no event shall Tenant be entitled to
consequential or punitive damages.

 

9

 

8.                                      Rent.

 

8.1.                              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.

 

8.2.                              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 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.

 

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

 

9.                                      Common Elements Operating Costs.

 

9.1.                              Tenant shall pay to Landlord Tenant’s proportionate share of the actual
Common Elements Operating Costs during the Term in accordance with this Section 9.

 

9.2.                              The term “Common Elements Operating Costs”
means any and all actual out-of-pocket expenses incurred by Landlord in
operating the Common Elements including without limitation, (i) payment for
personal property taxes and property insurance for the Common Elements, (ii)
the costs of lighting, painting, maintaining, repairing and replacing the
common pylon signs and (iii) the costs incurred by Landlord, if any, for
maintenance of the storm water management system and common lines thereto.

 

9.3.                              The Tenant’s proportionate share of the actual Common Elements Operating
Costs shall be the percentage that the square footage of the Property bears to
the total square footage of the Commercial Center, which will be calculated
when Landlord’s Engineer determines the actual square footage of the Property
in accordance with the granting clause on page 1 of this Lease and memorialized
in the Amendment. Within one hundred and twenty (120) days after the end of
each calendar year, Landlord shall furnish Tenant with a statement (in
reasonable detail) of the actual Common Elements Operating Costs incurred by
Landlord or its assignees during such prior calendar year prepared in
accordance with sound accounting practices. Tenant shall pay its proportionate
share of the actual Common Elements Operating Costs within thirty (30) days
after receipt of such statement.

 

10

 

9.4.                              On fifteen (15) days written notice and during normal business hours at
Landlord’s place of business, Tenant shall have the right to audit, at Tenant’s
cost, the Landlord’s books and records for the immediately preceding calendar
year to verify the actual Common Elements Operating Costs. Any errors disclosed
by the review shall be promptly corrected by Landlord; provided, however, that if Landlord
disagrees with any such claimed errors, Landlord shall have the right to cause
another review to be made by an auditor of Landlord’s choice and at Landlord’s
sole expense. In the event the results of the review of records (taking into
account, if applicable, the results of any additional review caused by
Landlord) reveal that Tenant has overpaid obligations for a preceding period,
the amount of such overpayment shall be credited against Tenant’s subsequent
installment(s) of Annual Rent, Additional Rent or other payments next coming
due to Landlord under the Lease. In the event that such results show that
Tenant has underpaid its obligations for a preceding period, the amount of such
underpayment shall be paid by Tenant to Landlord within thirty (30) days after
Tenant’s receipt of Landlord’s demand therefor. In the event any such audit
shall reveal an overcharge to Tenant in excess of ten percent (10%), in the
aggregate, of the actual amount that should have been charged to Tenant for the
subject year, Landlord shall reimburse Tenant for the reasonable cost of such
audit and the overcharge within thirty (30) days after demand.

 

10.                               Taxes and Assessments.

 

10.1.                        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 govermental
agency upon or with respect to ownership, use or occupancy of the Property
(including, without limitation, the land and Tenant Improvements on the
Property).

 

10.2.                        If at any time during the Term of this Lease under the laws of the
United States, State of Maryland, or any political subdivision thereof in which
the Property are situated, a tax or excise on rent or any other tax, however
described, is levied or assessed by any such political body against Landlord on
account of rentals payable to Landlord hereunder, such tax or excise shall be
considered for the purpose of this Lease a real property tax.   In addition, in the event that real estate
taxes are withdrawn, in whole or in part, and any substitute tax is made
therefore, such tax shall in any event for the purpose of this Lease be
considered a real estate tax, regardless of the source from which it is
collected.

 

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

 

10.4.                        All sums payable by Tenant under this Section 10 shall be paid at
least thirty (30) days prior to
accrual of interest of penalty for nonpayment and Tenant shall furnish Landlord
with evidence of payment in the form of official tax 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

 

11

 

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.

 

10.5.                        The parties shall take such reasonable action as may be necessary or
appropriate in order that proposed assessment notices and separate tax bills
for the Property 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 (including reasonable attorney’s fees)
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 as much prior written notice of said proceedings as reasonably
practicable. 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. Any refunding resulting from a contest by Tenant (as
well as any refund resulting from proceeding instituted by Landlord), shall be
applied and paid first to reimburse Tenant or Landlord for the costs and
expenses of the proceeding, including reasonable attorney’s fees. If the
Property is separately assessed, the remainder of the refund shall belong to
Tenant.

 

10.6.                        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.

 

11.                               Utilities.

 

11.1.                        Beginning on the date that Tenant enters the Property for construction
of Tenant Improvements, Tenant shall pay, when due, all hook-up and consumption
charges for all utility services furnished to the Property, including, but
without limitation, heat, air conditioning, gas, electricity and telephone,
which services shall all be separately metered to Tenant (at its cost). Tenant
shall, at its cost, install and use the utilities serving the Property in
accordance with the rules and regulations of the public or private utility
company or the governmental agency supplying the same. Tenant shall not be
compelled to hook-up and use any utility merely because it is available,
provided Tenant identifies in its Plans which utilities Tenant desires to serve
the Property.

 

11.2.                        Landlord shall not be liable to Tenant for damages because of
interruptions in storm water management or any other utilities unless such
interruption is due to the negligent or willful act of Landlord, its employees,
agents, contractors, or subcontractors, and Tenant shall not be entitled to
claim a constructive eviction due to such interruption; but

 

12

 

Landlord shall proceed with reasonable diligence to restore or cause to
be restored such service to the extent that it is within Landlord’s control to
do so.

 

12.                               Maintenance.

 

At Tenant’s sole cost, Tenant shall keep and maintain
the entire Property in good condition and repair. All garbage and trash shall
be stored in trash enclosures on the Property until removed. Tenant shall, at
its expense, regularly remove Tenant’s garbage and trash. Notwithstanding
anything contained in this Lease to the contrary, if Tenant refuses or neglects
to repair all or any portion of the Property and Tenant Improvements as
required hereunder and to the reasonable satisfaction of Landlord within thirty
(30) days following Landlord’s written notice, Landlord may make such repairs
without liability to Landlord for any loss or damage that may accrue to Tenant’s
merchandise, fixtures or other property, or to Tenant’s business by reason
thereof, and upon completion thereof, Tenant shall pay Landlord’s reasonable
costs for making such repairs plus twenty percent (20%) for overhead upon
presentation of a bill therefore, as Additional Rent. Landlord shall not be
required to make any repairs or improvements of any kind to any portion of the
Property.

 

13.                               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 serving the Property or other
parts of the Property 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 be installed at Tenant’s sole cost and will be performed in
compliance with all applicable laws, rules and regulations and the Declaration
and, except as otherwise expressly set forth herein, at the end of the Term or
sooner expiration of this Lease, become the property of Landlord and remain
upon the Property.

 

14.                               Trade Fixtures.

 

All furniture, counters, business machinery, banking
equipment (regardless of the manner of installation), vaults, if any, and
interior removable partitions placed upon the Property during the Term, 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 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 or
expiration of this Lease, all Tenant Improvements attached to the Property other
than the above (which shall be the property of the Tenant) shall become the
property of Landlord.

 

15.                               Signs.

 

Subject to the Declaration and all applicable
governmental approvals, Tenant shall be entitled to install and maintain on the
Property, at its cost and expense, permanent

 

13

 

professionally prepared signs containing Tenant’s trade name or logo so
long as such signs are attached to the building now or hereafter constructed on
the Property. The foregoing notwithstanding, Tenant’s sign plans for the
Property are attached hereto as Exhibit D. Tenant may, if permissible
under applicable governmental sign regulations, install directional signs on
the Property and a corporate -
standard environmental surround for each of Tenant’s automatic teller machines
(“ATM”). Tenant shall further have the
right to Tenant’s proportionate share of the signage area of the Common
Elements pylon sign within the Commercial Center, subject to any governmental
requirements and approvals for purposes of the pylon sign area. Tenant’s
proportionate share shall be a fraction, the numerator of which is the square
footage of the Property and the denominator of which is the square footage of
the Commercial Center. Each tenant within the Commercial Center, including
Tenant, shall maintain its own sign box on such pylon sign, and Landlord shall
maintain the remainder of the pylon sign as part of the Common Elements.

 

16.                               Landlord’s Access.

 

Landlord and its duly authorized representatives
may enter the Property upon reasonable advance notice to Tenant (unless an emergency exists) and subject to Tenant’s
security requirements, to inspect the Property, to rectify defaults of Tenant
pursuant to the rights granted to Landlord under Section 28 (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), and to repair any Common Elements
serving other parts of the Property, 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 Property or compromise security of the Property. During the six (6) months prior to the expiration of
the Term, Landlord may exhibit the Property and Tenant Improvements to
prospective tenants or purchasers, and place upon the same the usual notices “To
Let” or “For Sale” which notices Tenant shall permit to remain thereon without
molestation. Landlord shall promptly restore any disturbance to the Property
caused by any work performed by Landlord on the Property. Landlord may bring
upon the Property all things reasonably necessary to perform any work done in
the Property pursuant to this Section 16. 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 Property except as
otherwise specifically provided in this Lease.

 

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

 

17.1                           Keep the Property in a neat and clean condition;

 

17.2.                        Pay before delinquency any and all taxes, assessments and public charges
levied, assessed, or imposed upon the Property, Tenant’s business or upon
Tenant’s fixtures, furnishings or equipment in the Property 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 Property;

 

14

 

17.3.                        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
Property;

 

17.4.                        Observe all other reasonable rules and regulations established by
Landlord for all tenants in the Property from time to time; provided that (i) Tenant shall be given at
least five (5) days’ notice thereof, (ii) such rules and regulations shall be
uniformly applicable to all tenants in the Commercial Center, and (iii)
Landlord shall use reasonable efforts to enforce the rules and regulations in
respect of all tenants of the Commercial Center;

 

17.5.                        Comply with and observe all existing and future covenants of record that
affect or are applicable to the or Property and/or the Common Elements,
including, without limitation, the covenants, conditions and restrictions
contained in the Declaration;

 

17.6.                        Not use the parking areas, sidewalks adjacent to or any other space
outside the Building 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;

 

17.7.                        Not use any advertising medium or sound devices inside the Building that
may he heard outside the Property, 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;

 

17.8.                        Not use the plumbing facilities in the Property 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;

 

17.9.                        Not use for any purpose all or any portion of the roof or exterior walls
of the Property other than for Tenant’s signs as provided in this Lease and
communications equipment, including antennae or satellite dishes; and

 

17.10.                  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.

 

18.                               Indemnification.

 

18.1.                        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 occurs on any portion of the Property or is
caused by or arises (i) out of or in connection with Tenant’s use or occupancy
of the Property 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

 

15

 

reasonable counsel fees) described in the preceding sentence that
result from the negligence of Landlord, its agents, employees, servants, or
contractors.

 

18.2.                        Landlord shall defend, indemnify and save Tenant 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 the operation or maintenance by Landlord of the Common
Elements, or by any negligent act or omission of Landlord, its agents,
employees, servants or contractors, or (ii) out of breach by Landlord of any
term, covenant or condition of this Lease to be performed or observed by
Landlord. Landlord 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 Tenant,
its agents, employees, servants, or contractors.

 

19.                               Insurance and Casualty.

 

19.1.                        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), and covering
against all risks. Such policy shall include Builder’s Risk coverage in an
amount equal to the total cost of construction with respect to the construction
contemplated by Tenant’s Plans. Such policy shall name Landlord as an additional
insured as its interests may appear.

 

19.2.                        Restoration After Casualty Loss.

 

(a)                                  In the event of casualty damage to the Tenant
Improvements (excluding any common area on the Property), Tenant shall proceed
diligently to restore or cause to be restored the damaged Tenant Improvements
without any abatement in Annual Rent. Such restoration shall be at Tenant’s
sole cost and shall not be limited to the amount of insurance proceeds
recovered by Tenant. 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 the restoration of the Tenant Improvements as herein required
within one hundred twenty (120) days after the date of casualty, and otherwise
diligently pursue the completion of said restoration, 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 insurance proceeds received, or (b) raze and
demolish any remaining Tenant Improvements and pave the Property.
Notwithstanding anything to the contrary set forth in this Lease, if the Tenant
Improvements shall be substantially damaged or destroyed by casualty during the
final year of the Initial Term or during the final year of any Extension Term
(unless Tenant has exercised or exercises an Extension Term), then this Lease
shall terminate as of the date of such damage or destruction and all insurance
proceeds shall be paid solely to Landlord. Nothing in this Paragraph 19.2(a)
shall be construed as limiting Tenant’s rights to exercise Extension Terms.

 

16

 

(b)                                 In the event of damage or destruction by fire
or other casualty to the Common Elements, Landlord shall proceed diligently to
restore or cause to be restored the Common Elements.

 

19.3.                        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 liability insurance, automobile liability
insurance, boiler liability insurance and sprinkler damage liability insurance,
covering bodily injury and property damage occurring on the Property, including
contractual liability coverage for Tenant’s indemnity obligations under this
Lease with a limit of not less than Two Million Dollars ($2,000,000.00) for
bodily injury and death and for property damage and with not less than Five
Million Dollars ($5,000,000.00) 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 shall, in Landlord’s reasonable discretion, 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.

 

19.4.                        Liability Insurance of
Landlord.    During the Term, Landlord shall, at its
expense, keep in force commercial general public liability insurance,
automobile liability insurance, covering bodily injury and property damage
occurring in the Common Elements, including contractual liability coverage for
Landlord’s indemnity obligations under this Lease with a combined single limit
of not less than Two Million Dollars ($2,000,000.00) for bodily injury and
death and for property damage and with not less than Five Million Dollars
($5,000,000.00) 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 limitation set forth above shall be increased to a minimum limitation
that is then commercially reasonable whenever Landlord exercises its option
under Section 19.3 above to require an increase in the minimum limitation
of Tenant’s liability insurance.

 

19.5.                        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 endeavoring to send 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 where the Property is located 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 may be carried under a policy commonly known as a

 

17

 

“blanket policy.” Within three (3) Business Days after the Landlord’s
Delivery Date and prior to any entry upon the Property by Tenant, its agents or
contractors. Tenant shall furnish to Landlord copies and/or certificates of the
insurance policies requires to be carried by it under this Section 19.

 

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

 

19.7.                        Waiver of Claims.  
 Landlord and Tenant each release the other
from any loss or damage to the property of each or property in which each may have an interest if the loss is caused by a peril
of the type or arising from any cause that the claiming party was obligated to
insure against under this Lease. Each party to this Lease shall maintain
insurance that contains provisions or endorsements that allow the mutual
waivers contained in this subsection.

 

20.                               Eminent
Domain.

 

20.1.                        If the Property is condemned in whole or in part, such that the
remainder of the Property would be inadequate or unsatisfactory for the
Permitted Use as reasonably determined
by Tenant (which determination shall be made upon written notice to Landlord
within thirty (30) days after the condemning authority’s first notice of the
intended taking, under the power of eminent domain, this Lease shall terminate
on the date title and possession vests in the condemning authority. If Tenant
fails to timely notify Landlord hereunder, the right of termination will be
deemed waived. As used herein, the terms “condemned” and
“condemnation” include the 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 Property 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.

 

20.2.                        If any condemning authority notifies Landlord of a proposed condemnation
of more than twenty-five percent (25%) of the Property not covered by a building, or more than fifteen percent (15%)
of the area of the Building or which includes all or a substantial portion of
Tenant’s drive-in lanes, 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 Property. Tenant shall have up to thirty (30) days after the date of such
notice in which to elect to cancel this Lease, which shall be effective upon
the date title and possession vests in the condemning authority. If Tenant
gives written notice of such election within such thirty (30) 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
Property under Section 20.1 above. If Tenant does not make a timely
election to cancel this Lease, and the condemnation is consummated, then Tenant
shall restore the remaining Tenant Improvements to a complete

 

18

 

 

architectural unit and in such event the Annual Rent hereunder shall
thereafter be reduced by an amount that bears in the same proportion to the
Annual Rent payable prior to such condemnation as the area of the Property
taken bears to the total area of the Property prior to such condemnation.

 

20.3.                        If any portion of the Property where the common pylon signs are located
is condemned under the power of eminent domain, Landlord shall use commercially
reasonable efforts to relocate the pylon sign(s) to a reasonably suitable
alternate location within the Commercial Center.

 

20.4.                        Notwithstanding anything contained herein to the contrary, in the event of the
condemnation of all or any part of the Property, Tenant shall not be entitled
to share in any part of the condemnation award, including consequential
damages, for the taking, either for its leasehold estate or for its rights to
use any of the Common Elements, whether or not this Lease is terminated under
the provisions of this Section 20 by reason of such condemnation. Tenant
shall, however, be entitled to a portion of the award, if any, attributable to
Tenant Improvements and to any separate award obtained by Tenant from the
condemning authority for moving expenses, loss of trade fixtures, and loss of
business; provided, however, that any condemnation award attributable to Tenant
Improvements shall be amortized on a straight line basis over a thirty (30)
year period, with Landlord receiving the portion amortized and Tenant receiving
the balance.

 

20.5.                        For purposes of this Section 20, Landlord shall give Tenant prompt
written notice of any intended taking of all or any portion of the Property by
the condemning authority. Tenant shall have thirty (30) days from the receipt
of this notice to notify Landlord of its decision to terminate the Lease.

 

21.                               Assignment and Subletting.

 

21.1.                        Except as provided in Section 21.2 below, Tenant shall not assign
this Lease or sublease all or any part of the Property, nor permit other
persons to occupy or conduct business in said Property or any part thereof, nor
grant any license, concession, management contract or franchise for all or any part
of the Property without Landlord’s prior written approval, which approval shall
not be unreasonably withheld or delayed provided that all of the following
conditions are first satisfied:

 

(a)                                  Tenant shall not then be in default beyond any
applicable notice and cure period of any of the terms, conditions or
obligations to be performed by Tenant hereunder and shall continue to remain
liable for the full and timely performance of all of the terms and conditions
hereunder as and when due.

 

(b)                                 The proposed assignee or sublessee shall (i)
submit current (within six (6) months of the proposed assignment or subletting)
financial statements certified as accurate by its chief financial officer,
reasonably acceptable to the Landlord, and such tax returns or other financial
information as Landlord may reasonably require, establishing that the proposed
assignee or sublessee has net worth and working capital in amounts required by
Landlord in its

 

19

 

sole discretion; and (ii) execute such additional documentation,
including, without limitation, a guaranty or other form of security as may be
required by Landlord in its discretion.

 

(c)                                  The entity, organization or individual(s) to
which the Property is proposed to be assigned or sublet establishes to the
Landlord’s reasonable satisfaction, based on the criteria that the Landlord
customarily applies to prospective assignees and/or sublessees, that they have
experience, reputation, creditworthiness and business knowledge sufficient to
operate the Property consistent with what this Agreement requires.
Notwithstanding the foregoing, if the proposed assignee or sublessee is a
financial institution subject to the oversight of the FDIC (or its successor
regulator), satisfaction of the preceding paragraph (b) shall be deemed
satisfied along with this paragraph (c).

 

(d)                                 In the event of a subletting, the proposed
sublessee shall acknowledge in writing reasonably satisfactory to Landlord that
the proposed sublease between Tenant and the sublessee shall be in all respects
subject and subordinate to this Lease and that in the event the Landlord
terminates this Lease, dispossesses the Tenant or reenters the Property and/or
Tenant Improvements in accordance with the provisions of this Lease, Landlord
shall have the option to concurrently terminate the rights of the sublessee, in
which event the sublessee shall promptly and peaceably vacate the Property and
building, or the Landlord may elect to accept the sublessee, in which event the
sublessee shall immediately attorn entirely to the Landlord, except that the
Landlord shall not be liable for any previous act or omission of the Tenant as
against or bound by any prior modification of the sublease that Landlord has
not expressly consented to in writing, or by any prepayment of more than one
month’s rent by the sublessee.

 

(e)                                  The use of the Property and Tenant
Improvements by the assignee or sublessee shall be Permitted Use.

 

(f)                                    The Tenant shall pay Landlord, immediately
upon receipt thereof, all economic benefit received by the Tenant as a result
of the assignment or sublease, including without limitation the difference
between (a) the rent payable hereunder with respect to the portion of the
Property and Tenant Improvements covered by any such transfer; and (b) the rent
received by the Tenant from the assignee or sublessee, as and when each payment
of rent is paid. In accordance with this Section 21, the Tenant shall
provide Landlord with all agreements, duly executed, relating to the proposed
assignment and assumption agreement, or sublease agreement.

 

21.2.                        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 Tenant is a corporation, any transfer of
any of the Tenant’s issued and outstanding capital stock or any issuance of
additional capital stock, as a result of which the majority of the issued and
outstanding capital stock or any issuance of additional capital stock, as a
result of which the majority of the issued and outstanding capital stock of
Tenant is held by a corporation, firm or person or persons who do not hold a
majority of the issued and outstanding capital stock of Tenant on the date
hereof, shall be deemed a prohibited assignment under this Section 21. If
Tenant is a partnership, any transfer of any interest in the partnership or any
other change in the composition of partnership which results in a change in the
management of Tenant

 

20

from the person or persons managing the partnership on the date hereof,
shall be deemed a prohibited assignment under this Section 21. If Landlord
at anytime consents in writing to any assignment or sublease as defined in and
prohibited by this Section 21, 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 or sublease contrary to the provisions of this Section 21,
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.

 

21.3.                        Notwithstanding anything contained in Section 21.1 or Section 21.2
to the contrary, Tenant may, at any time, without  the consent of Landlord (but subject to
subsections (a) and (b) below) 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 such assignment or transfer, as a condition precedent to such
assignment or transfer (a) Tenant shall not then be in default of any of its
obligations hereunder beyond any applicable notice and cure period; and (b) the
assignee shall (i) assume in writing the performance and observance of all the
terms and conditions of this Lease; (ii) continue to operate the Property for
the Permitted Use (or such other use as may be approved by Landlord in its sole
and absolute discretion) and (iii) the assignment or proposed transfer shall
have received all necessary governmental and regulatory approvals; and provided
further, however, that Tenant shall continue to remain liable for the full and
timely performance of all of the terms and conditions under this Lease as and
when due, except in the event of a merger or consolidation in which Tenant is
not the surviving entity.

 

22.                               Mechanics’
Liens and Other Liens.

 

22.1.                        If any mechanics’ or other lien is filed against all or any part of the
Property 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 Property 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 any 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 22 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.

 

22.2.                        Tenant shall not permit the Property to be subjected to any statutory
lien or any other lien or encumbrance that might obtain priority over Landlord’s
interest in the Property or be in parity therewith by reason of any act or
omission on the part of Tenant or any

 

21

of its approved licensees or
subtenants or their respective agents, servants, employees or contractors other
than real estate taxes for which no interest of penalty has yet been incurred;
and in the event that any such lien attaches to the Property, 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.

 

23.                               Quiet
Enjoyment.

 

So long as no default exists
beyond any applicable cure period, Tenant shall have the peaceful and quiet use
of the Property, 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.

 

24.                               Subordination;
Landlord’s
Right to Mortgage; Attornment.

 

24.1.                        Subordination; Landlord’s Right to Mortgage.   Tenant agrees to subordinate this Lease to the lien of any first
mortgage or blanket mortgage on the Property and/or Commercial Center, as the
case may be.  The parties further agree
to promptly execute a Subordination, Non-Disturbance and Attornment Agreement (“SNDA”) in substantially the same form as shown on the
attached Exhibit E. 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 Property, Tenant’s leasehold interest
therein, or any improvements on the Property 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.

 

24.2.                        Non-Disturbance; Attornment.   When requested by Landlord, Tenant shall promptly execute the SNDA with
any mortgagee or prospective mortgagee, or purchaser or prospective purchaser,
of Landlord’s estate in the Property, or any improvements thereon or any part
thereof at any time and from time to time.

 

25.                               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.

 

22

 

26.                               Acts of Other Tenants.

 

Landlord shall not be liable for damage to all or any
portion of the Property including, without limitation, the Tenant Improvements,
due to the negligent or intentional acts or omissions of any other tenant,
subtenant or owner within the Commercial Center or to any condition existing on
or emanating from the Commercial Center of any other tenant or owner that is
caused by such tenant or owner or their respective agents or contractors, nor
shall Tenant be entitled to an abatement of rent to claim an actual or
constructive eviction, whole or partial, permanent or temporary, by reason of
any such condition on or emanating from such other  tenant’s or owner’s property.

 

27.                               Environmental
Matters.

 

27.1.                        During the Term of this Lease, Tenant shall: (1) keep the Property
(including the surface water, ground water, and improvements to the Property)
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 Property; provided, however,
that Tenant shall be permitted to maintain and use on the Property
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, used, disposed of and otherwise in accordance with all applicable laws.

 

27.2.                        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 Property, 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, diminution in value) 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 Property (including the Tenant Improvements),
or any other property outside of the boundary lines of the Property that
results from the acts or omissions of Tenant, its subtenants, agents,
contractors, licensees or invitees (including, but not limited to, contaminated
soil, buildings, facilities and/or ground water); 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 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.

 

27.3.                        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

 

23

 

have as tenant or landlord, respectively, of the Property and Tenant
Improvements under this Section 27, 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 Property, or any other property outside the boundary lines of the
Property affected by Tenant’s breach of its obligations under this Section 27 during the Term.

 

28.                               Defaults and Remedies.

 

28.1.                        Defaults.  If Tenant

 

(a)                                defaults in the payment of Annual Rent and
Additional Rent payable under this Lease, and such default continues for more
than five (5) business days after receipt of written notice thereof; provided
that Landlord shall not be obligated to provide written notice more than twice
in any twelve (12) month period; 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 five (5) 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 (provided, however, that such non-monetary
default shall be cured no later than one hundred twenty (120) days following
Landlord’s notice), then, in any of such foregoing events, Landlord may, at its
option, and in addition to any and all remedies available to it at law or in
equity (i) terminate this Lease and reenter the Property or (ii) reenter the
Property without terminating this Lease, and, using due care, assume custody
and control thereof for the purpose of protecting the Property and/or for reletting
the Property 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 Property 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 Harford 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, commissions and expenses, paid or incurred by
Landlord in connection with: (1) obtaining possession of the Property; (2)
removal and storage of Tenant’s or other occupant’s property;

 

24

 

(3) care, maintenance and repair of the Property while vacant; (4)
re-letting the whole or any part of the Property; and (5) repairing, altering,
renovating, partitioning, enlarging, remodeling or otherwise putting the
Property into condition acceptable to, and reasonably necessary to obtain new
tenants.

 

28.2.                        Other Remedies.        In
addition to any and all remedies available to Landlord at law or in equity, 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. 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 requirements, Landlord may
enter the Property 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 (or such other financial
institution as selected by Landlord if Carrollton Bank does not publish or
announce a prime rate) 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.

 

28.3.        Payment of Costs.   If
Landlord files an action against Tenant to collect Annual Rent or Additional
Rent payable under this Lease or any other sum, then Tenant shall pay all
reasonable attorney’s fees and out-of-pocket costs of collection incurred by
Landlord in such action.

 

28.4.                        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 Property, whether for safekeeping or collateral, and whether
in its vaults, safe deposit boxes, night depository, or safes.

 

28.5.                        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 Property,
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 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

 

25

 

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 thirty (30) days after
Tenant gives Landlord notice of the default and thereafter diligently pursues
curing of the same, Landlord shall be permitted such additional period of time
as necessary to cure the default before Tenant exercises Tenant’s remedies
under this Section 28.5.

 

29.                               Bankruptcy or Insolvency.

 

If any transfer of Tenant’s
interest in the Property created by this Lease shall he 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 thirty (30) 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, or 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, 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 Property; but notwithstanding such termination, Tenant
shall remain liable for all rent and damages suffered or incurred by Landlord.

 

30.                               Miscellaneous Provisions.

 

30.1.                        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.

 

30.2.                        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.

 

30.3.                        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.

 

30.4.                        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

 

26

 

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.

 

30.5.                        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
arc not expressly set forth therein. Any modification or amendment to this
Lease shall be in writing signed by all parties.

 

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

 

30.7.                        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 Property for the
satisfaction of any remedies of Tenant in the event of a breach by the Landlord
of any of its obligations hereunder.

 

30.8.                        Brokers.   Each party hereto hereby represents and
warrants to the other that in connection with the leasing of the Property, the
party so representing and warranting has not dealt with any real estate broker,
agent or finder, except for Retail Properties LLC (the “Broker”). Landlord hereby
agrees that it shall pay a commission to the Broker according to a separate
agreement. Each party shall indemnify and hold harmless the other party from
and against any claims for brokers or other commissions arising by reason of a
breach by such party of the foregoing warranty.

 

30.9.                        No Joint
Veniure.   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 Property and nothing contained in this Lease shall
be construed to be or to create a partnership or joint venture between Landlord
and Tenant.

 

30.10.                  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.

 

30.11.                  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, failure
of power or utilities, fire, vandalism, accident, flood, other casualty, riot,
insurrection, civil commotion, sabotage, explosion, war, natural or local
emergency, or other reasons of a similar nature not within the 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

 

27

 

the period of such delay. Notwithstanding the foregoing, the provisions
of this Section 30.11 shall not automatically extend the time period for
Tenant’s termination right provided in Section 4.4.

 

30.12.                  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 sole judgment and
shall be delivered in writing.

 

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

 

30.14.                  Waiver of Jury Trial.   Landlord and Tenant irrevocably waive the
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 Property.

 

Signatures
on Next Page

 

28

 

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:

  
	
   

  	
   

  
	
   

  	
  HICKORY CROSSING, LLC,

  
	
   

  	
  a Maryland limited liability company

  
	
   

  	
   

  
	
  /s/Susan Berndt

  	
   

  	
  By:

  	
  Kirk A. Salvo

  	
  (SEAL)

  
	
   

  	
   

  	
  Name: Kirk A. Salvo

  
	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  CARROLLTON BANK, a Maryland state

  
	
   

  	
  chartered commercial bank

  
	
   

  	
   

  
	
  /s/Allyson Cwiek

  	
   

  	
  By: /s/ Robert A. Altieri

  	
  (SEAL)

  
	
   

  	
      President and CEO

  
						

 

29

 

	
  STATE OF MARYLAND

  	
  )

  
	
   

  	
  ) SS:

  
	
  CITY/COUNTY OF  

  	
  Baltimore

  	
   

  	
  )

  
				

 

I HEREBY CERTIFY that on this
4th day of Nov, 2003, before me, the undersigned officer, personally appeared
Kirk A. Salvo, who acknowledged himself to be the Manager of Hickory Crossing,
LLC, a limited liability company, 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 Manager.

 

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

 

	
   

  	
  /s/Susan Berndt

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  
	
  My Commission expires

  	
   

  
	
   

  	
   

  
	
  1.10.06

  	
   

  	
   

  
				

 

	
  STATE OF MARYLAND

  	
   

  	
  )

  
	
   

  	
   

  	
  ) SS:

  
	
  CITY/COUNTY OF 

  	
  Baltimore

  	
   

  	
  )

  
				

 

I HEREBY CERTIFY that on this
28th day of October, 2003, 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 Senior Vice
President.

 

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

 

	
   

  	
  /s/[Illegible]

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My Commission expires:

  	
   

  
	
   

  	
   

  
	
  July 1, 2006

  	
   

  	
   

  
				

 

30

 

LIST OF
EXHIBITS

 

	
  Exhibit A

  	
   

  	
  PLAT

  
	
   

  	
   

  	
  (With Commercial Center Outlined in Green and Property outlined in Red)

  
	
   

  	
   

  	
   

  
	
  Exhibit A-l

  	
   

  	
  CONCEPTUAL DEVELOPMENT PLAN

  
	
   

  	
   

  	
   

  
	
  Exhibit A-2

  	
   

  	
  FINAL DEVELOPMENT PLAN

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  LANDLORD’S LAND SITE IMPROVEMENTS

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  FORM OF DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  TENANT’S SIGN PLANS

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  FORM   OF   SUBORDINATION,   NON-DISTURBANCE   AND ATTORNMENT AGREEMENT

  

 

31

 

EXHIBIT A

 

PLAT

 

 

EXHIBIT B

 

LANDLORD’S LAND SITE IMPROVEMENTS

 

1.                                       Landlord will rough grade the Property.

 

2.                                       Landlord
will cause the construction of public water and sewer lines (excluding Tenant’s
water meter) serving the Property, and conduits for underground electric and
telephone lines all to within five feet (5’) of the boundary of the Property.

 

32

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