EXHIBIT 10.2
AMENDMENT TO LEASE AGREEMENTS
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It is understood and agreed on this 5th day of October, 2004 that the
Lease Agreements dated July 16, 1999, and February 12, 2004, together with any
prior amendments thereto, between JOPPA GREEN II LIMITED PARTNERSHIP, LLLP, as
Landlord, and BAY NATIONAL CORPORATION, as Tenant, for the Leased Premises
situated at 0000 X. Xxxxx Xxxx, in the County of Baltimore, State of Maryland is
hereby amended and modified as follows:
1. Leased Premises. It is understood and agreed that the Leased
Premises containing approximately 5,970 square feet on the
third floor and 947 square feet on the first floor are hereby
increased to contain approximately 7,918 square feet as
outlined in red on the attached Exhibit "A". The additional
1,001 square feet is hatched in red on this same attached
Exhibit "A".
2. Term: It is understood and agreed that the Term of this Lease
shall commence on November 1, 2004 and shall be for a period
of five (5) years and four (4) months to terminate February
28, 2010.
3. Rent. It is understood and agreed that effective November 1,
2004, Tenant agrees to pay base annual rent according to the
following base rental schedule:
Yearly Monthly
------ -------
11/01/04-02/28/05 - $19,425.49
03/01/05-02/28/06 - $240,390.48 $20,032.54
03/01/06-02/28/07 - $247,602.19 $20,633.51
03/01/07-02/28/08 - $255,030.26 $21,252.52
03/01/08-02/28/09 - $262,681.16 $21,890.09
03/01/09-02/28/10 - $270,561.60 $22,546.80
*Note: The above base rental schedule adds on the 765 square
feet first floor space and the 236 square foot third floor
space at the same rate as the 947 square feet currently in
place. The entire square footage increases by approximately
3.175% effective March 1,2005 with three percent (3%) annual
increases going forward each year thereafter.
4. Tenant Improvements. It is understood and agreed that Landlord
will have no obligation to make any alterations,
modifications, additions and/or improvements to the Leased
Premises, and the Tenant accepts the Leased Premises on an "AS
IS" basis. However, Landlord does agree to provide to Tenant a
$7.00 per square foot tenant improvement allowance or
$5,355.00 for the newly added 765 usable square feet. Said
allowance shall be paid to Tenant upon presentation from
Tenant to Landlord of the appropriate construction invoices
for Tenant's improvements to the Leased Premises. Said tenant
improvement allowance can be used to improve any portion of
Tenant's total Leased Premises. Tenant also agrees to return
the third floor common area hallway to the same condition
prior to Tenant's expansion.
5. Option Agreement. See the attached.
It is further understood and agreed that the terms, covenants and
conditions of the above-mentioned Lease Agreement and any prior amendments
thereto except as the same are amended or modified herein are hereby ratified
and confirmed to the end that the same shall remain in full force and effect as
therein provided.
WITNESS: LANDLORD:
JOPPA GREEN II LIMITED PARTNERSHIP, LLLP
By: MacKenzie Properties, Inc.
General Partner
/s/ Lea Xxx Xxxxxxxx By: /s/ Xxxx X. Xxxx
-------------------- ----------------
Xxxx X. Xxxx, Executive Vice President
WITNESS: TENANT: BAY NATIONAL CORPORATION
/s/ Xxxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxxx
------------------- ------------------
Xxxx X. Xxxxxx, Director
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TERM EXTENSION RIDER
THIS RIDER is attached to and made a part of a certain Lease of even
date between the undersigned Landlord and Tenant in respect of Leased Premises
in Joppa Green II located in Baltimore County.
1. OPTION(S) TO EXTEND TERM.
Providing that Tenant is not in default under any of the terms,
covenants, and conditions of its Lease Agreement, Landlord hereby grants Tenant
the optional right(s) to extend the terms of this Lease for one (1) successive
period of five (5) years as follows:
Each period added to the term of this Lease by exercise of an option
shall be called an "Extended Term." The term of this Lease will be the original
term plus each Extended Term. An option to create an Extended Term may be
exercised only by the Tenant giving written notice thereof to Landlord not less
than one hundred eighty (180) days prior to the expiration of the original term
or any prior Extended Term of this Lease. The written notice required hereunder
shall be certified mail, return receipt requested.
2. LIMITATIONS ON EXERCISE TO EXTEND TERM.
A. If any option to extend the term of this Lease is not
timely exercised, all unexercised options to extend shall automatically become
null and void.
B. Each right to extend the term of this Lease may be
exercised only by the undersigned Tenant for its continued use and occupancy of
the Leased Premises and only if it is in possession of the Leased Premises and
operating a permitted use there when it exercises the right. No such right shall
be conveyed or deemed conveyed to any assignee, subtenant, concessionaire or
licensee of the undersigned Tenant even though Landlord may have approved the
assignment, subletting, concession or license.
C. If Tenant is in default under the Lease, all unexercised
rights to extend the term of the Lease shall automatically be extinguished and
become null and void.
3. LEASE PROVISIONS.
All terms, covenants, and conditions set forth in the Lease of even
date herewith with respect to the original terms shall apply to any Extended
Term: provided, however, that the rent or base annual rent as provided for in
this Lease shall be increased by an amount equal to three percent (3%) of the
rent paid by Tenant in the last year of the original lease term. Subsequent
increases during the remainder of the extended term shall equal three percent
(3%) over and above the previous year's base rent.
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