Document:

Exhibit
10.30

 

LEASE

 

Section 1.                                            BASIC
LEASE PROVISIONS

 

1.01                           Date
and Parties.  This lease (Lease) is
made the 20th day of January, 2004 between Robert G. Scarano, as Trustee for
M. K. Realty Trust under a Declaration of Trust dated April 25,
1995 and recorded in the Middlesex North District Registry of Deeds in Book
7519 on Page 061, (Landlord) and Enterprise Bank and Trust Company
(Tenant).  Tenant is a Massachusetts
Corporation with a principal office at 222 Merrimack Street, Lowell,
Massachusetts 01852.

 

1.02                           Premises.                                              The
Landlord leases to Tenant and Tenant leases from the Landlord, subject to the
terms of this Lease, a unit of a building (“the building”), which is to be
built and which unit, when the building is erected, will contain Three
Thousand- Seven Hundred-Forty Five (3,745) square feet of first floor space
(hereafter referred to as the “Demised Premises”) and shown on Exhibit “A”
hereto and annexed and made a part hereof. 
The Demised Premises shall be referred to as Unit 1.  Unit 1 shall be part of a building located
in a Shopping Mall to be known as Lynley Square (the “Shopping Mall”) and
located in the Town of Tewksbury, Middlesex County, Massachusetts, the
boundaries of which are shown on Exhibit “A.” 
The present structure now located on the Shopping Mall shall be torn
down and the Landlord shall erect thereon an 11,000 square foot building
composed of up to six retail units on the first floor and containing`3500
square feet of office space located on the second floor of the building over the
main building entrance.

 

1.03                           Use.                        The tenant
shall use the demised Premises as a commercial bank branch facility providing
teller and other services, as well as an Automatic Teller Machine (“ATM”) and
other services customarily provided by commercial banks including providing
stock brokerage services, the operation of a trust company, the sale of
insurance and any other banking service which may be permitted from time to
time by the Federal Reserve Bank and/or the Division of Banking of the
Commonwealth of Massachusetts.  The
demised Premises may also be used for any other purpose or purposes or any
other like equipment which are permitted by the zoning by-laws of Tewksbury as
the same as from time to time amended.

 

1.04                           Term.  The initial term of this lease shall be the
period of seven (7) years commencing on the commencement date (hereafter
defined) and ending eighty-four (84) months after the commencement date.

 

1.05                           Extended
Term.  If this original lease is
still in full force and effect, then the Tenant shall have the right and option
to extend the initial term hereof for twelve (12) consecutive thirty (30) month
options of extension (the “First Option Period”, “Second Option Period”, “Third
Option Period”, “Fourth Option Period” and “Fifth Option Period”, “Sixth Option
Period”“Seventh Option Period”“Eighth Option Period”“Ninth Option Period”“Tenth
Option Period”“Eleventh Option Period”“Twelfth Option Period”
respectively).  The term of this lease
shall be extended for the applicable Option Period without the requirement of
any further instrument, unless, no

 

1

 

later than the date which is Ninety (90)days prior to the expiration of
the initial term or applicable Option Period, as the case may be, the Tenant
shall send written notice (the “Termination Notice”) to the Landlord of its
intention not to exercise its option to extend the term of this lease, in which
event the term of this lease shall expire on the last day of the initial term
or applicable Option Period, as the case may be.  If the Tenant shall fail to send the Termination Notice, then the
term of this lease shall be extended as aforesaid upon all of the same terms
and provisions contained in this lease, except that annual minimum rent for
each of the Option Periods shall be as set forth in article 2.03.

 

1.06                           Parking.  When completed the Leases Premises shall
contain not less than ninety (90) parking spaces, of which ten (10) spaces
shall be exclusively dedicated to the use of Enterprise Bank and Trust Company
and its customers. There will be a minium of six (6) additional parking spaces
which parking spaces shall be as shown in Exhibit C-4 immediately adjacent to
Unit 1.  The parking spaces for
Enterprise Bank Employees at a space to be designated by Landlord shall be
located in a lighted, lined, and hot-topped parking lot.  The Landlord shall attach to this Lease an
approved site plan which shows the parking lot, access to the parking lot, and
the location of the parking spaces, which plan shall be Exhibit C-4  and shall be incorporated, herein.

 

1.07                           Building.
The Landlord, at its expense, shall erect on the Premises up to six Units
building.  Unit 1, which shall be leased
to the Tenant, and will be referred to herein, and has been referred to as the
“Leased Premises”,  shall contain Three
Thousand-Seven Hundred-Forty Five (3,745) square feet of first floor
space.  The amount of square footage
shall be measured from the inside all walls of Unit 1 and from the inside walls
of all units in the building.  Unit 1
and the other improvements on the Premises shall be completed in a good and
workman like manner, and shall comply with all applicable laws, ordinances,
rules and regulations of governmental authorities, and shall be erected in
accordance with the plans attached hereto in Exhibit D, which is incorporated
herein by reference.  The building shall
be constructed and fit-up with those items shown on a draft fit-up proposal
which is attached hereto as Exhibit E, and in accordance with the plans and specifications
described in Exhibit C, which is also attached hereto and incorporated by
reference.  The Landlord agrees that not
later than sixty (60) days from the date of this Lease, that it will furnish to
the Tenant the specifications showing all materials which are to be used in
connection withe construction of the building.

 

1.07A.              The
area of square footage under the canopy which contains the drive through and
the ATM Machines shall be called the canopy space.  The amopunt of basic rent charged for the canopy area shall be
calculated at the common area rate.

 

1.08         LandLords
Work.  The Landlord shall perform
the following work to the building in which Unit 1 will be a part.

	
  (1)

  	
   

  	
  Construct the building
  shell in which Unit 1 is located in accordance with the plans and
  specifications set out in Exhibit D.

  
	
  (2)

  	
   

  	
  The plans and
  specifications shall require the Landlord to construct a shell and to bring
  all utilities to the point in the shell as shown on Exhibit A. The shell
  shall

  

 

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  contain the roof,
  foundation, footings, floor, walls, and storefront.

  
	
  (3)

  	
   

  	
  The building shall be
  substantially completed when the Tenant is able to commence Tenant
  construction work without material interference from work required to be done
  by Landllord.

  
	
  (4)

  	
   

  	
  Pave, and stripe and
  light, provide drainage to the parking area in accordance with the approved
  site plan as shown in Exhibit C-4.

  
	
  (5)

  	
   

  	
  When the Landlords work
  is substantially completed, the Tenant shall commence the Tenant’s work.

  
	
  (6)

  	
   

  	
  The Landlord shall
  begin its work not later than February 1, 2004. The Landlord shall
  substantially complete its work not later than August 1, 2004. The
  Tenant will commence its work to fit out the Unit when the space is made
  available to it to enable it to commence its work. The Tenant anticipates it
  will require not more than 120 days to complete the tenant fit out work.

  
	
  (7)

  	
   

  	
  The commencement date
  of the lease shall be the first to occur of the following:

  
	
   

  	
   

  	
   

  	
   

  	
  (1)

  	
   

  	
  The issuance of a certificate
  of occupancy by the Building Inspector of Tewksbury; for the Bank Unit;
  or

  
	
   

  	
   

  	
   

  	
   

  	
  (2)

  	
   

  	
  45 days from the date
  of completion of the Landlord’s work.

  
	
  (8)

  	
   

  	
  If a dispute shall
  arise regarding the substantial completion of Landlord’s work , the decision
  of the Tenant’s architect shall control.

  
	
  (9)

  	
   

  	
  If the Landlord’s work
  is not commenced by February 1, 2004 or if commenced, and not completed
  by August 1, 2004, the Tenant shall be permitted to terminate this
  lease.

  

 

1.10                           Drive
Up Facilities.                                           The
parking lot shall contain room adjacent to the building the subject matter of
this Lease to allow the installation of two (2) drive-up facilities.  The location of the drive-up facility, and
the location of the drive-up lanes including the drive-up canopy shall be
erected as shown in Exhibit C-4), which is attached hereto, and made a part
hereof.  It is understood that the
canopy is to be part of the shell construction.

 

Section 2.                                            RENT

 

2.01                           Rent
and Security   Beginning on the
occupancy date, and on the first day of each succeeding month until the
commencement date of the Lease the Tenant shall pay to the Landlord the
occupancy rent in the amount of $3,120.83 dollars (prorated for any
potential month). The occupancy date shall be the date when the Tenant commences
to perform its fit up work.

 

2.02                           Initial
Rent   Beginning on the commencement
date,  the Tenant shall pay to the
Landlord an annual rental (“ Base Rent”) for the initial term at the rate of
Ten and 00/100 Dollars ($10.00) for each square foot of floor space on the
first floor.  The fixed annual rate
shall be paid to the Landlord on the first day of each month in advance during
the first f seven (7) years of the initial term of this lease.

 

2.03                           Renewal
Rent-first extended terms. For the First Option Period the Tenant shall pay
to the

 

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Landlord an annual rental (“ Initial Rent”) at the rate of Twelve
Dollars ($12.00) for each square foot of floor space on the first floor.  The fixed annual rent shall be paid to the
landlord on the first day of each month during the first option period.  For the Second Option Period rent shall
increase over the annual minimum rent due and payable for the First Option
Period from the first day of the first full calendar month of the Second Option
Period through the last day of the last full calendar month of the Second
Option Period.  For the Third Option
Period rent shall increase over the annual minimum rent due and payable for the
Second Option Period from the first day of the first full calendar month of the
Third Option Period through the last day of the last full calendar month of the
Third Option Period.  For the Fourth
Option Period rent shall increase over the annual minimum rent due and payable
for the third option period from the first day of the first full calendar month
of the Fourth Option Period through the last day of the last full calendar
month of the Fourth Option Period.  For
the Fifth Option Period rent shall increase over the annual minimum rent due
and payable for the Fourth from the first day of the first full calendar month
of the Fifth Option Period through the last day of the last full calendar month
of the Fifth Option Period.  For the
Sixth Option Period rent shall increase over the annual minimum rent due and
payable for the Fifth Option Period from the first day of the first full
calendar month of the Sixth Option Period through the last day of the last full
calendar month of the Sixth Option Period.. For the Seventh Option Period rent
shall increase over the annual minimum rent due and payable for the Sixth
Option Period from the first day of the first full calendar month of the
seventh Option Period through the last day of the last full calendar month of
the Seventh Option Period.  For the
Eighth Option Period rent shall increase over the annual minimum rent due and
payable for the Seventh Option Period from the first day of the first full
calendar month of the Eighth Option Period through the last day of the last
full calendar month of the Eighth Option Period. For the Ninth Option Period
rent shall increase over the annual minimum rent due and payable for the Eighth
Option Period from the first day of the first full calendar month of the Ninth
Option Period through the last day of the last full calendar month of the Ninth
Option Period. For the Tenth Option Period rent shall increase over the annual
minimum rent due and payable for the Ninth Option Period from the first day of
the first full calendar month of the Tenth Option Period through the last day
of the last full calendar month of the Tenth Option Period.. For the Eleventh
Option Period rent shall increase over the annual minimum rent due and payable
for the Tenth Option Period from the first day of the first full calendar month
of the Eleventh Option Period through the last day of the last full calendar
month of the Eleventh Option Period. For the Twelfth Option Period rent shall
increase over the annual minimum rent due and payable for the Eleventh Option
Period from the first day of the first full calendar month of the Twelfth
Option Period through the last day of the last full calendar month of the
Twelfth Option Period.

 

2.04                           Rent
Adjustment.    The amount of base rent for each extended
term shall be determined as follows: Using the Revised Producers Price
Index—All Urban consumers (PPI-U) U.S. City Average (1982-84 = 100) published
by the Bureau of Labor Statistics of the United States Department of Labor (the
“Price Index”), applicable on the last date of the twenty- fourth month following
the commencement date of this Lease as the Denominator and the index number for
the last month of each two year term thereafter as the numerator, multiply the
resulting fraction times the base rent. In the event the Producer price index
of the United States is 

 

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discontinued, comparable statistics, as published by the United States
Government shall be used for making such computation.

 

2.05                           Rent
Payment.   All rent shall be paid by
the Tenant to Landlord on or before the first day of every calendar month in
advance, pro-rated for any partial month. Until further notice from Landlord,
all rent is to be payable to Landlord and mailed to 1147 Main Street, Suite 107
in Tewksbury,  Massachusetts 01876.

 

2.06                           Rent
Basis.    The initial rent for the first seven years of
the initial term shall be calculated on the basis of $10.00 a square
foot of floor area of the leased Premises times 3745 square feet and the basis
of $12.00  a square foot of floor area
for the first option period.   Prior to
occupancy a representative of the Landlord and the Tenant shall take an
accurate measurement of the leased Premises, 
If the area is not Three Thousand-Seven Hundred-Forty Five (3,745)
square feet then the initial rent and the first option rent shall be adjusted
accordingly by the use of the following formula: total square feet of the first
floor area of the leased Premises times $10.00, or $12.00, which ever is
applicable.

 

Section 3.                                            AFFIRMATIVE
OBLIGATIONS

 

3.01                           Utilities.    Tenant
shall pay to the proper authority charged with the collection thereof, all
charges for the consumption of electricity, gas, telephone and other such
services separately metered or billed to Tenant for the leased Premises.  All such charges shall be paid as the same
from time to time become due.  The
Landlord acknowledges that it has brought all utilities which are to service
the Leased Premises directly to the Premises and to the Leased Premises, and
that the Tenant shall only need to make arrangements to turn on such utilities
and arrangements for billing for any such services.  The Tenant shall make its own arrangements for such utility
billing.  The Landlord shall not be
liable for any interruption or failure in the supply of utilities to the Premises
unless any such interruption or failure in the supply of utilities to the
Premises was caused by the negligence of the Landlord.

 

3.02                           Repairs
and Maintenance Tenant Obligations.   Tenant shall keep the
Premises in good order; make repairs to the Premises needed because of the
tenant’s use of the Premises;  repair
and replace special equipment installed by or at Tenant’s request, except to
the extent the repairs or replacement are needed because of Landlord’s misuse
or primary negligence or Landlord’s replacement obligations in paragraph
3.04.  Prior to the commencement date of
the lease. Tenant shall be permitted to inspect the building’s heating, air
conditioning and ventilation system.(“HVAC System” or “HVAC”)  If the HVAC system is in good operating
order, Tenant will be responsible for its repair and replacement during any and
all term or terms of the lease.  If the HVAC
system is in poor operating order or does not adequately distribute throughout
the leased Premises as reasonably determined by the Tenant, the Landlord shall
replace the same and after such replacement, the Tenant then shall be
responsible for the repair and maintenance of the system and all warranties
which accompany any replacement shall be available to the Tenant.  The Landlord shall provide two(2) five ton
HVAC Units as part of the Landlord’s work.

 

5

 

3.03                           Landlord
Repairs and Replacements.   The Landlord shall be
responsible to replace the roof, foundation, exterior walls, interior
structural walls, all structural components, and all systems such as
mechanical, electrical, HVAC, and plumbing. 
Except for repairs or replacements that Tenant must make under
section 3.02, Landlord shall pay for and make all other repairs and replacements
to the Premises.  Landlord shall make
such repairs and replacements to maintain the Leased Premises in a first class
condition.

 

3.04                           Time
for Repairs and Replacement.   Repairs or replacements
required under section 3 shall be made within a reasonable time after
receiving notice or having actual knowledge for the need for repair or
replacement.

 

3.05                           Tenant’s
Obligation on Surrender.

a.                                       Upon
the ending date of the initial term or the ending date of the last extension
term, if any,  whichever is later,
Tenant shall surrender the Premises to the Landlord in the same condition that
the Premises were in at the beginning, except for ordinary wear and tear;
damage by the elements, fire, and other casualty, condemnation, and damages
arising from any cause not required to be repaired by the Tenant.

b.                                      On
surrender, Tenant shall remove from the Premises, its personal property, trade
fixtures and repair any damage to the Premises caused by the removal.  Any items not removed by Tenant as required
above, shall be considered abandoned. 
Landlord may dispose of abandoned items as Landlord chooses and bill
Tenant for the cost of disposal, minus any revenues received by Landlord for
the disposal.  It is understood that all
personal property and trade fixtures brought onto the Premises by the Tenant
even if affixed to the Leased Premises, including but not limited to vaults and
vault components, security systems, ATM machines, night deposit systems,
drive-up teller components, teller counter and under-counter equipment
furniture, furnishings and the like, shall be considered personal property for
which the Tenant shall have the absolute right to remove same, subject to its
obligations to repair in paragraph 3.02. 
Prior to the commencement date the Landlord and the holder of all
mortgages shall execute a Landlord’s waiver acknowledging and consenting to the
contents of this paragraph 3.05( b.)

 

3.06                           Assignment
Subleasing.  The Tenant shall have
no right to assign or sublet the whole or any part of the Premises without Landlord’s
prior written consent, which  consent shall not be unreasonably withheld
or delayed.  Notwithstanding such
assignment or subleasing, Tenant shall remain liable to Landlord for the
payment of all rent and for the full performance of the covenants and
conditions of this lease.

 

3.07                           Compliance
With Law.  Tenant’s use of the
Premises shall, at its own expense, conform to and comply with all zoning,
building, environmental, fire, health, and other codes, regulations,
ordinances, or laws which are applicable to the use made of the Premises by the
Tenant.

 

3.08                           Landlord
Access.  The Landlord or agents of
Landlord, may at reasonable times, enter to view the Premises.  No visit of the Landlord or its agents shall
take place at times other than normal business hours of the Tenant.

 

6

 

3.09                           Signs
Building.  The Tenant shall be
permitted signage on the leased Premises. 
The same are to be placed and constructed in accordance with any sign or
zoning by-law of the Town of Tewksbury. The Tenant shall be allowed to place a
large sign in gold letters at the Top of the Sign Board to be located on the
building where Unit 1 is located.. 
Tenant shall pay for the cost of erecting and maintaining any and all
such signs. The Tenant shall remove the same upon the termination of this
lease. The Landlord will cooperate with and assist the Tenant in obtaining
approvals for such signage.

 

3.10                           Signs
Shopping Mall    The Landlord prior
to the commencement date at its sole expense shall erect a free standing sign
tower in the shopping mall.  The
location and the dimensions of the sign shall be as shown on Exhibit C4
attached hereto.  The Tenant shall be afforded
the top space on the free standing sign. 
The Landlord shall not permit any other mall tenants to place shopping
mall sign which are greater than 75% of the size of the sign area to be used by
Tenant.  No sign shall be placed on the
building, or on the shopping mall sign without the written approval of the
Tenant. The cost of the sign and its installation on the Tower shall belong to
the Tenant.

 

Section 4.                                            COMMON
AREA

 

4.01                           Non
exclusive parking spaces.  Landlord
agrees that Tenant shall, during the term hereof, with others, have the
non-exclusive right to use the parking facilities of the Shopping Mall for the
accommodation and parking of such automobiles of Tenant, its officers, agents
and employees, and its customers while shopping in the Shopping Mall. Tenant
and its customers shall have continuous and uninterrupted access to and from
all the drive up areas.

 

4.02                           Maintenance.  Landlord shall cause all existing parking
facilities, including lighting thereof, to be maintained in reasonable good
repair and in reasonably clean condition at all times during the term of this
lease. The parking areas and buildings in the shopping mall shall be maintained
by the Landlord in a reasonably clean and painted condition at all times during
all terms of this Lease. Beginning, and every two years thereafter, during the
term of this lease, the Landlord, at no cost to the Tenant, shall re-line the
parking spaces in the entire parking area which services the shopping mall.
Beginning and every five (5) years thereafter, the Landlord, at no cost to the
Tenant, shall paint the exterior of all buildings which are located in the
shopping mall.   Beginning
August 1, 2006 and every two (2) years thereafter during the term of the
Lease, the Landlord at no cost to the Tenant, shall paint the exterior trim of
each building in the shopping mall every two (2) years; shall seal the exterior
parking area every four (4) years.  The
Landlord shall also perform spring and fall clean-up to the exterior
landscaping of the shopping mall, and grass and planting shall be done on a ten
(10) to twelve (12) day rotation between may 15th, through
November 15th of each year of the term of this Lease as such
work is needed.

 

4.03                           Snow
Removal.  Accumulations of snow will
be removed by the Landlord from said parking areas and other common area of the
shopping mall and from the drive-up teller areas of the leased Premises
including all exits and entrances to the shopping area and all exits and
entrances from the drive up teller area. 
All snow accumulations and will be deposited in such

 

7

 

locations as are feasible so as to permit unimpeded use of the drive up
teller area and of the shopping facility parking areas. If the Landlord fails
to commence clearing the snow within one hour after the snow ceases or prior to
7:00 a.m. on the morning after the snow storm, the Tenant is granted permission
to remove the snow at the expense of the Landlord and the Landlord shall pay
such bill less the pro-rata share of the Tenant. Snow plowing shall be a part
of the common area maintenance expense of the shopping plaza.

 

4.04                           Common
Area Maintenance Expenses.  The
Landlord shall pay all costs and expenses of every kind and nature in
operating, managing, equipping, policing, lighting, repairing, replacing and
maintaining, landscaping and gardening in all parking area of the shopping
center  (including any future parking
subsequently installed in the Shopping Facility for the common use of customers
and employees of the Shopping Facility), and all other common areas of the
Shopping Facility including, furnishing receptacles for trash storage for the
Tenant, and providing regular trash removal to and from the shopping center and
daily cleaning of the leased Premises. The Landlord shall pay the electricity
cost of all outside lighting and the cost of water and sewer services for the
shopping center and the leased Premises. All services listed in this paragraph
4.04  shall be referred to as common
area maintenance expenses. The Tenant shall pay to the Landlord as its pro-rata
share of the common area maintenance a monthly sum calculated based on a
formula which the total number of first floor square footage of the Tenant on
the first floor of the leased premises bears to the total amount of square feet
in the entire building.. Such payment shall be made in the same manner as
monthly rent. 

 

4.05                           Real
Estate Taxes.   The Tenant shall pay
to the Landlord a proportional share of the real estate taxes assessed against
the entire shopping facility, including land and buildings.  The percentage of real estate taxes to be
paid by the Tenant shall be based upon the amount of first floor square footage
occupied by the Tenant together with the square foot area of the canopy are in
relation to the amount of square footage of all the buildings erected on the
Premises.

 

Section 5.                                            NEGATIVE
OBLIGATIONS

 

5.01                           Overloading
and Nuisance.  The Tenant shall not
injure, overload, deface or permit to be injured, overloaded of defaced, the
Premises and the Tenant shall not permit, allow or suffer any waste or any
unlawful, improper or offensive use of the Premises or any occupancy thereof
that would be injurious to any person, property, or invalidate or increase the
premiums for any insurance on the Leased Premises.

 

5.02                           Payment
of Landlord’s Expenses.  The Tenant
agrees to pay on demand any Landlord’s cost and expenses including any
reasonable legal expenses of any third party attorney employed by the Landlord
and incurred by Landlord in enforcing through any court or arbitration
proceeding brought to enforce the terms of this lease, provided it is
determined during or after such court or arbitration proceeding that the Tenant
was in violation of this lease. In the event there is a finding for the Tenant
or against the Landlord, then the Landlord shall be responsible for all of the
legal expenses, including reasonable legal costs of the Tenant.

 

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Section 6.                                            INSURANCE

 

6.01                           Fire
Insurance.  Landlord shall be
required to keep the Leased Premises and Tenant shall be responsible to keep
its personal property and trade fixtures with “all risks” insurance in an
amount to cover one hundred (100) percent of the replacement cost of the Leased
Premises and fixtures.  Tenant shall
also keep any non-Leased Premises-standard improvements made to the Premises at
Tenant’s request insured to the same degree as Tenant’s personal property.  Landlord’s policy shall include an
endorsement that the insurance will cover damage to the Leased Premises caused
by the negligence of the Tenant, its officers, and employees in the amount
of-the full replacement value of the Leased Premises, as the value may exist
from time to time.

 

6.02                           Liability
Insurance.  Each party shall
maintain contractual and comprehensive general liability insurance, including
public liability and property damage, with a minimum combined single limit of
liability of two million dollars ($2,000,000.00) for personal injuries or
deaths of persons occurring in or about the Leased Premises and the shopping
area

 

6.03                           Waiver
of Subrogation.    All insurance
which is carried by either party with respect to the Premises and the shopping
area or to furniture, furnishings, fixtures or equipment therein or alterations
or improvements thereto, whether or not required, if either party so requests
and it can be so written, and it does not result in additional premium, or if
the requesting party agrees to pay any additional premium, shall include
provisions which either designate the requesting party as one of the insured or
deny to the insurer acquisition by subrogation rights of recovery against the
requesting party.  Each party waives all
rights of recovery against the other for loss or injury against which the
waiving party is protected by insurance containing said provisions, reserving
however, any rights with respect to any excess of loss or injury over the
amount recovered by such insurance.  The
policies of insurance required under section 6.01  and 
6.02 to be maintained by Landlord shall name as insured parties Landlord
and Tenant, as their respective interests may appear, and they may be carried
under blanket policies maintained by Landlord if such policies comply with the
provisions of section 6.01 and 6.02.

 

6.04                           Evidence
of Insurance.   By the Beginning
Date and upon each renewal of its insurance policies, each party shall give
certificates of insurance to the other party. 
The certificate shall specify amounts, types of coverage, the waiver of
subrogation, and the insurance criteria listed in the lease.  The policies shall be renewed or replaced and
maintained by the party responsible for that policy.  If either party fails to give the required certificate within
thirty (30) days after notice for demand for it, the other party may obtain and
pay for that insurance and receive reimbursement from the party required to
have the insurance. Each policy shall contain a provision that no policy may be
terminated or amended without at least 30 days written notice to the other
party.

 

Section 7.                                            LOSS OF
PREMISES

 

7.01                           Fire
and Casualty Loss - Rebuild.  If the
entire Premises or any substantial part thereof shall

 

9

 

be damaged by fire or other insured casualty, then, Landlord shall
proceed with diligence, subject to the then applicable statutes, building codes,
zoning by-laws, and regulation to rebuild or repair in accordance or cause to
be repaired such damages.  The repair or
restoration will not commence until plans and specifications are reviewed by
Tenant and Landlord.  The lease may be
terminated 180 days after such damage, by the Tenant if construction has not
commenced.  So much or all of the
insurance proceeds shall be used to restore or rebuild.

 

7.02                           Abatement
of Rent.  If the Premises, or any
part thereof shall have been rendered unfit for use and occupation hereunder by
reason of such damage the fixed Rent or a just and proportionate part thereof,
according to the nature and extent to which the Premises shall have been so
rendered unfit, shall be suspended or abated until the Premises shall have been
restored as nearly as practicable to the condition in which they were
immediately prior to such fire or other casualty.

 

7.03                           Rebuild
Last 24 Months.   If the Premises
are so damaged by fire or other casualty (whether or not insured) at any time
during 9th extended term and the cost to repair such damage is reasonably
estimated to exceed one-half of the total Annual Fixed Rent payable hereunder
for the period from the estimated completion date of repair until the end of
the Term, and Landlord determines not to repair such damage, then and in any
event, this Lease and the term thereof may be terminated at the election of
Landlord by a notice from the Landlord to Tenant within sixty (60) days
following such fire or other casualty. 
In the event of any termination, this Lease and the Term hereof shall
expire as of such effective termination date as though that were the date
originally stipulated in Section 1.06 
for the end of the Term and the fixed Rent shall be apportioned as of
such date.  Except for the final
extended term, the Tenant, unless the lease is terminated, may extend the term
if the loss occurs during any term but the final term so as to require Landlord
to rebuild according to this Section 7.03.

 

Section 8.                                            EMINENT
DOMAIN AWARD

 

8.01                           Landlord
reserves to itself and Tenant assigns to Landlord, all rights to damages
accruing on account of any taking under the power of eminent domain or by
reason of any act of any public or quasi public authority for which damages are
payable.  Tenant agrees to execute such
instruments of assignment as may be reasonably required by Landlord in any
proceeding for the recovery of such damages if requested by Landlord, and to
turn over to Landlord any damages that may be recovered in such proceeding.  It is agreed and understood, however, that
Landlord does not reserve to itself, and Tenant does not assign to part
thereof, in the name of the whole, and repossess the same as of Landlord’s
former estate or (ii) mail a notice of termination addressed to Tenant and upon
such entry or mailing this Lease shall terminate.  In the event that this Lease is terminated under any of the
foregoing provisions, or otherwise for breach of Tenant’s obligations
hereunder, then at Landlord’s option, Tenant covenants to pay forthwith to
Landlord as compensation the total rent and additional rent reserved for the
residue of the Term, and pay on demand all Landlord’s costs and expenses,
including reasonable attorney’s fees, incurred by Landlord in enforcing any
obligation of Tenant under this Lease, or in connection with any request by
Tenant for Landlord’s consent or approval under this Lease.

 

10

 

8.02                           In
calculating the amounts to be paid by Tenant under the foregoing covenant,
Tenant shall be credited with any amount actually paid to Landlord as
compensation as herein before provided and also with any additional rent
actually obtained by Landlord by reletting the Premises, after deducting the
expenses of collecting the same.  And
Tenant further covenants, as an alternative obligation, at Landlord’s election,
after any such termination or entry, to pay punctually to Landlord all the sums
and perform all the obligations which Tenant covenants in this Lease to pay and
to perform in the same manner and to the same extent and at the same times as
if this Lease had not been terminated.

 

8.03                           Nothing
herein contained shall, however, limit or prejudice the right of Landlord to
obtain in proceedings for bankruptcy or insolvency or reorganization or arrangement
with creditors as liquidated damages by reason of such determination an amount
equal to the maximum allowed by any statute or rule of law in effect at the
time when, and governing the proceedings in which, such damages are to be
proved, whether or not such amount be greater than, equal to, or less than the
amounts referred to above.

 

8.04                           If
only a part of the demised Premises shall be taken under the power of eminent
domain and if the term of this lease shall not be terminated as aforesaid, then
the term of this lease shall continue in full force and effect and Landlord
shall, within a reasonable time after possession is required for public use,
repair and rebuild what may remain of the demised Premises so as to put the
same into condition for use and occupancy by Tenant, and a just proportion of
the minimum rent according to the nature and extent of the injury to the
demised Premises shall be suspended or abated until what may remain of the
demised Premises shall be put into such condition by Landlord, and thereafter a
just proportion of the minimum rent according to the nature and extent of the
part so taken shall be abated for the balance of the term of this lease.  Landlord shall not be required to spend an
amount for such repairing and released Premises in excess of the amount
received by Landlord as damages for such taking.

 

Section 9.                                            DEFAULTS
- REMEDIES

 

9.01                           If,  (a) Tenant shall default in the performance
of any such of its monetary obligations under this Lease, and if such default
shall continue for ten (10) days after written notice from Landlord to Tenant
(provided that Landlord shall not be required to give such notice more than
twice during the Term, the third such non-payment constituting an Event of
Default without the requirement of notice) or (b) if within thirty (30)
business days after written notice from Landlord to Tenant specifying another
default or defaults, Tenant has not commenced diligently to correct such
default or has not thereafter diligently pursued such correction to completion,
or (c) if any assignment shall be made by Tenant for the benefit of creditors,
or if a petition is filed by or against Tenant under any provision of the
Bankruptcy Code and, in the case of involuntary petition, such petition is not
dismissed with ninety (90) days, or (d) if the Tenant’s leasehold interest
shall be taken on execution or by other process of law, attached or subjected
to any other involuntary encumbrances, then and in any such cases Landlord and
its agents and servants may lawfully, immediately or at any time thereafter,
and without further notice or demand, and

 

11

 

without prejudice to any other remedies available to Landlord for
arrearages of rent or otherwise, either (I) enter into and upon the Premises or
any expiration of the term of this Lease the whole or any substantial part of
the Premises shall be taken under the power of eminent domain, then the term of
this Lease shall cease as of the time when Landlord shall be divested of its
title in the demised Premises, and minimum rent shall be apportioned and
adjusted as of the time of termination.

 

9.02                           Landlord’s
Defaults.   If the Landlord fails to pay any liens or
encumbrances affecting the property and to which this lease may be subordinate
when any of the same may be due or in any other respects fails to perform any
covenant or agreement in this lease contained on the part of the Landlord, to
be performed, then and in such event, after the continuance of any such failure
or default for thirty (30) days after notice has been given by the Tenant to
the Landlord, Tenant may pay said lien or encumbrance and cure such
defaults.  Tenant, after such thirty
(30) day period, may make all necessary payments in connection therein,
including but not limited to the payment of any reasonable attorneys fees,
costs and charges incurred, in connection with any legal action which may have
been brought.  If all such indebtedness
of Landlord is not fully paid within thirty (30) days after Tenant has paid the
same and Landlord has been given notice same has been paid, Tenant may elect
(1) to deduct such amount from rent subsequently becoming due hereunder, or (2)
extend this lease on the same covenants and conditions as herein provided until
such indebtedness is fully paid by application to rents.  Encumbrance shall include mortgage payments
where an uncured default exists.

 

9.03                           Tenant
Defaults.   If Tenant shall fail to make or perform any
payment or act required by this lease, then Landlord may, make such payment or
perform such act for the account of the Tenant.  All amounts so paid by Landlord and all incidental costs and
expenses including attorneys fees and expenses incurred in connection with such
payments or performance, together with interest thereon at the maximum legal
rate, or if no such rate is established at the rate of ten (10%) percent per
annum from the date of the making of such payment or of the incurring of such
costs and expenses, shall be paid by Tenant to Landlord on demand.  This is an additional remedy of Landlord.

 

Section 10.                                      NON
DISTURBANCE

 

10.01  SUBORDINATION AND
NON-DISTURBANCE.  This Lease and all
rights of the Tenant hereunder are and shall be subject and subordinate to the
lien of any and all mortgages which may now or hereafter affect the property or
any part thereof and to all renewals, modifications, consolidations,
replacements and extensions thereof, provided that any such mortgage placed
upon the property shall provide that so long as there shall be outstanding no
continuing event of default in any of the terms, conditions, covenants or
agreements of this lease on the part of the Tenant to be performed, the
Leasehold estate of the Tenant created by this Lease and Tenant’s peaceful and
quiet possession of the property shall be undisturbed by any foreclosure of any
such mortgage and the mortgagee shall recognize this lease and all its terms
and conditions including but not limited to any rights to extend this lease and
any and all rights of first refusal to lease or to purchase which are set forth
in this lease.  The mortgagee shall
consent

 

12

 

to the use of all insurance proceeds for the restoration of the Leased
Premises in the event of fire or other casualty as herein set forth. This
subordination and non-disturbance document shall be executed prior to the
commencement date.

 

10.02  Estoppel Certificate.  Either party shall from time to time, within
ten (10) business days after receiving a written request by the other party,
execute and deliver to the Asking Party a written statement in recordable
form.  This written statement, which may
be relied upon by the Asking Party and any third party with whom the Asking
Party is dealing shall certify:

 

	
  (i)

  	
   

  	
  the accuracy of the Lease document;

  
	
  (ii)

  	
   

  	
  the Beginning and Ending Dates of the Lease;

  
	
  (iii)

  	
   

  	
  that the Lease is unmodified and in full effect or
  in full effect as modified stating the date and nature of the modification;

  
	
  (iv)

  	
   

  	
  whether to the Answering Party’s knowledge the Asking
  Party is
  in                         default
  or whether the Answering Party has any claims or
  demands                          against
  the Asking Party, and if so, specifying the Default, claim,
  or          demand; and

  
	
  (v)

  	
   

  	
  to other correct any reasonably ascertainable facts
  that are covered by the Lease terms

  

 

10.03  Right of First
Refusal- Purchase.   If at any time
during any term of this lease, Landlord shall receive and be willing to accept
the bone fide offer from a third party to purchase the shopping center or if
Landlord shall offer to sell the property to any third party, Landlord shall,
if there is no event of default, promptly transmit to Tenant its offer to sell
the property to Tenant upon same terms and conditions as those offered by or to
the third party, together with a true copy of such original offer.  If Tenant shall not accept such offer within
forty-five (45) days after it is made, Landlord may, after the expiration of
such forty-five (45) day period, sell such interest to a third party upon terms
and conditions as those offered to the Tenant. 
If Tenant accepts such offer by notice to Landlord within the time
permitted, the offer and acceptance shall constitute a contract for the sale by
Landlord and the purchase by Tenant of the property at a closing to be held
within thirty (30) days following the receipt by Landlord by Tenants notice of
acceptance.  On the date of such
purchase, the Landlord shall convey the Premises in consideration of the payment
of the purchase price by quitclaim deed, conveying good clear record and
marketable title to the Premises free of all liens and encumbrances except this
lease and except for easements and restrictions of record which are listed on
Exhibit E attached hereto.  The Landlord
may use the purchase price to pay off mortgage liens and like
encumbrances.  If Landlord shall be
unable to give title, the Landlord shall use reasonable efforts to remove such
defects in title.  All remaining
conditions of sale shall be as found in the current Greater Boston Real Estate
Board form purchase and sale agreement as reasonably adjusted for this
transaction. Notwithstanding the foregoing, the Tenant may transfer its
interest in the shopping center without being in violation of this
article 10.03 to family members in the form of a family limited
partnership or like entity provided the transfer is done as part of estate
planning for the Landlord or its Trustees.

 

10.04  Right of First
Refusal-Lease.   If at any time
during any term of this lease, Landlord shall receive and be willing to accept
the bone fide offer from a third party to lease the shopping center

 

13

 

or if Landlord shall offer to sell the property to any third party,
Landlord shall, if there is no event of default, promptly transmit to Tenant
its offer to sell the property to Tenant upon same terms and conditions as
those offered by or to the third party, together with a true copy of such
original offer.  If Tenant shall not
accept such offer within forty-five (45) days after it is made, Landlord may,
after the expiration of such forty-five (45) day period, sell such interest to
a third party upon terms and conditions as those offered to the Tenant.  If Tenant accepts such offer by notice to
Landlord within the time permitted, the offer and acceptance shall constitute a
contract for the sale by Landlord and the purchase by Tenant of the property at
a closing to be held within thirty (30) days following the receipt by Landlord
by Tenants notice of acceptance.  On the
date of such purchase, the Landlord shall convey the Premises in consideration
of the payment of the purchase price. by quitclaim deed, conveying good clear
record and marketable title to the Premises free of all liens and encumbrances
except this lease and except for easements and restrictions of record which are
listed on Exhibit E attached hereto. 
The Landlord may use the purchase price to pay off mortgage liens and
like encumbrances.  If Landlord shall be
unable to give title, the Landlord shall use reasonable efforts to remove such
defects in title.  All remaining
conditions of sale shall be as found in the current Greater Boston Real Estate
Board form purchase and sale agreement as reasonably adjusted for this
transaction.

 

10.05  Satellite Dish.  Notwithstanding anything to the contrary
contained in this lease, the Landlord agrees that at any time during the term
of this lease, the Tenant shall have the right to install on the Building, a
satellite dish (the “Dish”), or other similar transmittal device.  The Tenant agrees and acknowledges, however,
that the location of any Dish, the method of any such installation, and the
type of Dish proposed to be installed shall be subject to:  (i) compliance by the Tenant with all
applicable laws, rules, regulations and the like pertaining thereto; (ii) the
consent by the Landlord, which consent shall not be unreasonably withheld.  If Tenant shall install such Dish, (a) the
Tenant shall do so at its own cost and expense and in accordance with all
applicable laws, rules and regulations; (b) the Tenant shall maintain such Dish
in accordance with all applicable laws, rules and regulations.  At the expiration or other termination of
this lease, such Dish shall remain the property of the Tenant, and shall be removed
by the Tenant, and the Tenant shall repair any and all damage caused by such
removal.

 

10.06  Landlord’s Waiver.  The Landlord acknowledges that the Tenant
has informed the Landlord that the Tenant intends to finance the Tenant’s
inventory, trade fixtures, trade equipment and furniture that the Tenant will
be installing in the demised Premises. 
The Landlord hereby agrees that the Landlord’s rights, and any lien that
the Landlord may have by reason of the Tenant’s default under this lease, shall
be subordinate to the rights of any lender providing the Tenant with funds for
the purchase, financing or refinancing of such inventory, fixtures, equipment
and/or furniture, provided, however, that a precondition to such subordination
shall be the execution by the Landlord, the Tenant and such lender of the
chattel lien waiver.

 

14

 

Section 11.                                      MISCELLANEOUS

 

11.01  Notices.  Unless a Lease provision expressly
authorizes verbal notice, all notices under this Lease shall be in writing and
sent by registered or certified mail, postage prepaid, or by federal express or
other such carrier as follows:

 

 

To Tenant:

at  222 Merrimack Street, Lowell, Massachusetts
01852

To Landlord:

at 1147 Main Street in
Tewksbury, Massachusetts 01876

Either party may change the addresses by giving notice
as provided above.

 

11.02  Broker Warranty.  Each party warrants that there has been no
real estate broker involved in connection with this lease.  The party who breaches this warranty shall
defend, hold harmless and indemnify the non-breaching party from any claims or
liability arising from the breach.

 

11.03  Partial Invalidity.  If any Lease provision is invalid or
unenforceable to any extent, then that provision shall be excised from the
agreement and the remainder of this Lease shall continue in effect and be
enforceable to the fullest extent permitted by law.

 

11.04  Waiver.  The failure of either party to exercise any
of its rights is not a waiver of those rights. 
A party waives only those rights specified in writing signed by the
party waiving its rights.

 

11.05  Binding on Successors.  This Lease shall bind the parties, their
successors, representatives, and permitted assigns.

 

11.06  Governing Law.  This lease shall be governed by the laws of
the Commonwealth of Massachusetts.

 

11.07  Recording.     Prior to the commencement
date of this lease, the parties shall execute a Notice of Lease in a form
suitable for recording in the Registry of Deeds where the property lies.

 

11.08  Survival of Remedies.  The parties’ remedies shall survive the
ending of this lease when the ending is caused by the Default of the other
party.

 

11.09  Authority of Parties.  Each party warrants that it is authorized to
enter into the Lease, that the person signing on its behalf is duly authorized
to execute the Lease, that no other signatures are necessary.

 

11.10  Entire Agreement.  This Lease contains the entire agreement
between the parties about the Premises. 
This Lease shall be modified only by a writing signed by both parties.

 

15

 

11.11  Quiet Enjoyment.  Landlord agrees that upon Tenant’s paying
the rent and performing and observing the agreements, conditions and other
provisions on its part to be performed and observed, Tenant shall and may
peaceably and quietly have, hold and enjoy the demised Premises during the term
of this Lease without any manner of hindrance or molestation from Landlord or
anyone claiming under Landlord, subject, however, to the terms of this Lease
and the encumbrances listed in Exhibit F.

 

11.12  Hazardous Waste:  Landlord agrees to indemnify and hold
harmless the Tenant of and from any damages, including but not limited to
reimbursement for mandated clean-up, costs of litigation and the like, arising
from any hazardous waste which may exist on the Premises, either at the time of
the commencement date of the lease or subsequently, unless such release or
threat of release is due to or caused by Tenant activities or persons or
entities under its control. Landlord.

 

11.13  Exclusive Use.  The Landlord agrees that, for and with
respect to any term hereof, the Landlord will not enter into any lease at the
Shopping Mall where the permitted use thereunder is the operation of commercial
bank or a financial services business or any use described in Section 1.03
of this lease or any use of an ATM machine (a “Competing Use”).

 

If Landlord shall lease any space in the Shopping Mall
to a Tenant whose use under its lease or occupancy is a Competing Use, and such
Tenant shall commence such operation in the Shopping Mall (an “Exclusive
Violation Condition”), then, in such event then, as Tenant’s remedy at law and
in equity, for the period commencing on the date following the commencement of
the Exclusive Violation Condition and continuing until the same shall cease,
the Tenant shall have the right to:  (a)
a reduction of fifty percent (50%) in the Tenant’s minimum rent payment
otherwise due and payable hereunder (“Reduced Minimum Rent”) and (b) the pursuit
of injunctive relief to enjoin or restrain such Tenant from engaging in such
Competing Use.

 

11.14  Landlord’s Title to
Premises.       Landlord
represents and warrants that the Landlord has good and clear record and
marketable title to the Premises in fee simple, and has the full right and
lawful authority to enter into this Lease for the full Original Term and Option
Terms hereof; that the Premises are free from any encumbrance, easement or
restriction under which Tenant’s rights to possession and use of the Premises
may be affected, disturbed or terminated; and that there is presently no
mortgage or deed of trust encumbering the Premises, except as set forth in
Exhibit F hereto.

 

Section 12:   CONTINGENCIES

 

12.01  Tenant’s Contingency.  The Tenant’s obligations under this lease
shall be contingent upon its obtaining all approvals from the Commissioner of
Banks of the Commonwealth of Massachusetts and the Federal Deposit Insurance
Corporation so as to enable the Tenant to operate a commercial bank and trust company
in and upon the Premises.  The Tenant
agrees to make all the necessary applications as soon as this lease is executed
and to proceed with such application in a good faith manner.  If such approvals are not obtained in 90
days, 2004, from the

 

16

 

date of execution of this lease by both Landlord and Tenant, Landlord
at its option may terminate this lease. 
If there is a termination hereunder, Tenant at its sole cost and expense
shall remove any items of personal property from the Premises and shall repair
and restore the Premises to their previous condition prior to Tenant fit up, in
a timely and expeditious manner.

 

Section 13.                                      ARBITRATION

 

13.01  Any disagreement between
the parties with respect to the interpretation or application of this lease or
the obligations of the parties hereunder shall be determined by
arbitration.  Such arbitration shall be
conducted, upon request of either the Landlord or the Tenant, before three
arbitrators (unless the Landlord or the Tenant agree to one arbitrator)
designated by the American Arbitration Association and in accordance with the
rules of such Association.  The
arbitrators designated and acting under this lease shall make their award in
strict conformity with such rules and shall have no power to depart from or
change any of the provisions thereof. 
The expense of arbitration proceedings conducted hereunder shall be
borne equally by the parties.  All
arbitration proceedings hereunder shall be conducted in the county in which the
leased property is located.

 

13.02  It is agreed that if at
any time a dispute shall arise as to any amount or sum of money to be paid by
one party to the other under the provisions hereof, the party against whom the
obligation to pay the money is asserted shall have the right to make payment
“under protest” and such payment shall not be regarded as a voluntary payment
and there shall survive the right on the part of said party to institute suit
for the recovery of such sum, and if it shall be adjudged that there was no
legal obligation on the part of said party to pay such sum or any part thereof,
said party shall be entitled to recover such sum or so much thereof as it was
not legally required to pay under the provisions of this lease; and if at any
time a dispute shall arise between the parties hereto as to any work to be
performed by either of them under the provisions hereof, the party against whom
the obligation to perform the work is asserted may perform such work and pay
the cost thereof “under protest” and the performance of such work shall in no
event be regarded as a voluntary performance, and there shall survive the right
on the part of said party to institute suit for the recovery of the cost of
such work, and, if it shall be adjudged that there was no legal obligation on
the part of such party to perform the same or any part thereof, said party
shall be entitled to recover the cost of such work or the cost of so much
thereof as said party was not legally required to perform under the provisions
of this lease.

 

17

 

	
   

  	
  Landlord

  	
   

  
	
   

  	
  M.K. Realty Trust

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Robert G.
  Scarano

  	
   

  
	
   

  	
  Robert G. Scarano

  	
   

  
	
   

  	
  Trustee and not individually

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenant

  	
   

  
	
   

  	
  Enterprise Bank and Trust Company

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Robert R.
  Gilman

  	
   

  
	
   

  	
  Robert R. Gilman

  	
   

  
	
   

  	
  Its Senior Vice -President

  	
   

  

 

18

 

LIST OF EXHIBITS

 

	
  A -

  	
   

  	
  Site Plan

  
	
   

  	
   

  	
   

  
	
  B -

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  C -

  	
   

  	
  Unit 1 Designation plan to be provided by Tenant

  
	
   

  	
   

  	
   

  
	
  C-4 - Site plan parking

  
	
   

  	
   

  	
   

  
	
  D -

  	
   

  	
  Building plan elevation

  
	
   

  	
   

  	
   

  
	
  E -

  	
   

  	
  Landlords fit out

  
	
   

  	
   

  	
   

  
	
  F -

  	
   

  	
  Liens and encumbrances

  

 

19Exhibit 10.38

 

CONFIDENTIAL

 

June 11, 2003

 

Thomas C. Nord

22 Invincible Court

Alameda, CA  94501

 

Dear Tom:

 

On behalf of Willis Lease Finance Corporation (“WLFC” or the
“Company”), I am pleased to provide you with the following offer to join our
Company and become part of our senior management team:

 

	
  Responsibilities:

  	
   

  	
  Senior Vice President & General Counsel of WLFC with
  responsibility for managing the legal function within WLFC.

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Senior Vice President & General Counsel

  
	
   

  	
   

  	
   

  
	
  Base
  Salary:

  	
   

  	
  Your initial base salary will be $210,000
  per year, less payroll deductions and all required
  withholdings.  You will be paid
  semi-monthly. Your salary, along with those of other executive officers of
  WLFC, will be reviewed by the Compensation Committee of the WLFC Board of
  Directors on an annual basis.

  
	
   

  	
   

  	
   

  
	
  Incentive

  	
   

  	
   

  
	
  Compensation:

  	
   

  	
  The Incentive Compensation Plan (the
  “Plan”) is designed to provide a bonus equal to a targeted percentage of your
  base salary.  Your participation will
  be prorated based on the number of weeks you are employed from your actual
  start date through December 31, 2003. 
  The Plan is based upon the Company achieving certain performance
  targets, which change from year-to-year. 
  For purposes of the Plan for 2003, the performance targets and
  corresponding weightings are as follows:

  

 

	
  Profitability

  	
   

  	
  35

  	
  %

  
	
  Portfolio Utilization Rate

  	
   

  	
  35

  	
  %

  
	
  Subjective Performance Evaluation

  	
   

  	
  30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  100

  	
  %

  

 

Assuming WLFC achieves these targets, a bonus pool
will be created to be divided up amongst all participants. The size of each
person’s share of the bonus pool is based upon each person’s base salary plus
their target bonus percentage.  Your
target bonus percentage would be equal to 50% of your base salary and consists
of two components:  (a) 70% of your
target bonus percentage is based upon company performance, and (b) 30% of your
target bonus is based upon individual performance.  We would be happy to discuss the 2003 Plan with you in greater
detail.

 

	
  Stock
  Options:

  	
   

  	
  Subject to the terms and conditions of the
  1996 Stock Option/Stock Issuance Plan (as amended March 30, 2003), including
  the Corporate Transaction/Change in Control provision

  

 

1

 

	
   

  	
   

  	
  contained therein, within 30 days of the
  Start Date you will be granted options to purchase 30,000 shares of WLFC
  common stock.  One-fourth of the
  options shall become vested and exercisable in equal increments on each
  one-year anniversary of the Start Date through the fourth such anniversary,
  provided that you are employed by WLFC on each such anniversary date.  In addition, you will be eligible to
  participate in WLFC’s ongoing stock option plan, which could result in annual
  awards of additional options based upon Company and individual performance.

  
	
   

  	
   

  	
   

  
	
  Severance:

  	
   

  	
  In the event you are terminated as a result
  of a “Change in Control” (as defined at Schedule A hereto) within the first
  year of  your employment with
  WLFC, the Company will provide you with a severance payment in an amount
  equal to six months base salary, payable in one lump-sum.

  
	
   

  	
   

  	
   

  
	
  Benefits:

  	
   

  	
  You will be entitled to participate in such
  employment benefits as are generally available to senior managers of the
  Company (provided, of course, that you meet the standard eligibility
  requirements, as applicable), including:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
  Vacation.  Four weeks vacation on an annual basis
  pro-rated for 2003 based upon your Start Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
  Company Medical, Dental and Vision Plans.  The cost of these plans varies slightly
  based upon whether you select the HMO or PPO.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
  401(k) Plan.  WLFC has a state-of-the-art 401(k) plan
  that permits almost unlimited investment selections and allows you to
  administer your account via the Internet or over the phone 24 hours per day.  WLFC matches 50% of the employee’s first
  8% deferral.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
  Deferred Compensation Plan.  Allows key executives to defer
  compensation above and beyond the 401(k) Plan.  Key executives may elect to have up to 80% of their base annual
  salary and 100% of their annual bonus deferred.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
  Employee Stock Purchase Plan.  Plan is designed to provide employees an
  opportunity to purchase shares of WLFC common stock every 6 months at a 15%
  discount from the fair market value of the stock.  An Employee may commit from 1 – 10% of his/her base salary via
  payroll deductions and may purchase a maximum of 500 shares each 6-month
  period.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  f)

  	
  Short-Term Disability.  Provides 60% of the employee’s salary up
  to a maximum payment of $2,500 per week for 18 weeks.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Long-Term Disability.   Provides 60% of the employee’s salary up
  to a maximum benefit of $10,000 per month while you continue to be disabled,
  until age 65.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  g)

  	
  Group Life Plan.  Plan provides coverage of 1x earnings up
  to $500,000.  Employees have the
  option to purchase additional life insurance via the Supplemental Life
  Insurance Option.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  h)

  	
  Supplemental Life Insurance.  Additional life insurance purchased at the
  employee’s own cost at 1, 2 or 3x earnings.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i)

  	
  Employee Assistance Plan. 
  Confidential counseling service for employees and dependents.

  
	
   

  	
   

  	
   

  	
   

  
	
  Start
  Date:

  	
   

  	
  On or about July 1, 2003.  We would work with you to be as flexible
  as possible with respect to the Start Date.

  

 

For purposes of federal immigration law, you
will be required to provide documentary evidence of your identity and
eligibility for employment in the United States.  Such documentation must be provided to us within three (3)
business days of your date of hire.

 

2

 

Your employment with the Company will be “at
will” and not for a specified term. 
This means that the Company may terminate your employment at any time
and you may terminate your employment with WLFC at any time with or without
cause, for any reason or for no reason, with or without notice.  Any contrary representations or agreements
which may have been made to you are superseded by this offer letter.  Although your job duties, title,
compensation and benefits, as well as the Company’s personnel policies and
procedures, may change from time to time, the “at will” nature of your
employment only may be changed in an express written agreement signed by you
and a duly authorized officer of WLFC.

 

By signing this letter agreement, you
represent and warrant to WLFC that (i) you are not a party to any employment
agreement or other contract or arrangement that prohibits your full-time
employment with WLFC, (ii) you will not disclose any trade secrets or
confidential information of any third party to the Company, and (iii) you do
not know of any conflict that would restrict your employment with WLFC.

 

Tom, all of us here at WLFC feel you would
make an excellent addition to our staff and that you would be able to provide
immediate assistance toward helping us meet our overall corporate goals.

 

I look forward to hearing from you soon.  Please feel free to call if you have any
questions.

 

To
indicate your acceptance of our offer, please sign and date this letter in the
space provided and return one copy to me.

 

Sincerely,

 

 

Donald A. Nunemaker

Executive Vice President &

Chief Operating Officer

 

	
  I
  ACCEPT THE ABOVE OFFER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Thomas C. Nord

  	
   

  	
   

  	
   

  
	
  Thomas C. Nord

  	
  Date

  
				

 

Schedule A

“Change in Control” Definition

 

As used in the
Severance provision of this Offer Letter, “Change in Control” means the occurrence
of any of the following events: (i) any “person” (as such term is used in
Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended),
other than Charles F. Willis IV or an Affiliate (as defined in Section 13) of
Charles F. Willis IV, is or becomes the “beneficial owner” (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of Employer
representing at least fifty percent (50%) of the total voting power represented
by Employer’s then outstanding voting securities; or (ii) the stockholders of
Employer approve a merger or consolidation of Employer with any other
corporation, other than a merger or consolidation which would result in the
voting securities of Employer outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty (50%) of the total voting
power represented by the voting securities of Employer or such surviving entity
outstanding immediately after such a merger or consolidation, or the
stockholders of Employer approve a plan of complete liquidation or dissolution
of Employer or an agreement for the sale or disposition by Employer of all or
substantially all of Employer’s assets, provided, however, that if such merger,
consolidation, liquidation, dissolution, sale or disposition does not
subsequently close, a Change in Control shall not be deemed to have occurred;
or (iii) individuals who are directors of Employer as of the date hereof
cease for any reason to constitute a majority of Employer’s Board of Directors
(the “Board”) unless such change(s) is approved by a majority of the directors
of Employer as of the date thereof.

 

3

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