FIRST AMENDMENT TO DEED OF LEASE
Exhibit
10.41
FIRST
AMENDMENT
This First Amendment to Deed of Lease
(the “First Amendment”) is made and entered into this 7th day February, 2008, by
and between BALTIMORE BOULEVARD
ASSOCIATES LIMITED PARTNERSHIP (“Landlord”) and OLD LINE BANK
(“Tenant”).
WHEREAS, Landlord and Tenant entered
into a Deed of Lease dated July 28, 2005, (the “Lease”) under which Tenant
leased approximately One Thousand Two Hundred Sixty Eight (1,268) rentable
square feet of office space in Suite 450 which is located on the fourth floor
(“Premises A”), and approximately One Thousand Nine Hundred Sixteen (1,916)
rentable square footage of retail space in Suite 101 (“Premises B”) located on
the first floor of the building at 0000 Xxxxxxxxx Xxxxxx, Xxxxxxx Xxxx, Xxxxxxxx
00000 (”Building”); and
WHEREAS, the Lease for Suite 450 is
scheduled to expire on February 28, 2008; and
WHEREAS, Landlord and Tenant wish,
among other matters, to amend the Lease to extend the Term solely with respect
to Premises A, all on the terms hereinafter contained.
NOW THEREFORE, in consideration of the
foregoing, and other good and valuable consideration, the receipt and
sufficiency of which is acknowledged by the parties, the parties agree as
follows:
1. Extension
Term. The Extension Term for the Premises A shall commence
March 1, 2008 (the “Extension Term Commencement Date”) and will expire on
February 28, 2013 (the "Lease Termination Date").
2. Basic
Rental. Effective as of the Extension Term Commencement Date,
Tenant shall pay Landlord Basic Rental for Premises A, in legal tender, at
Landlord’s office, the annual sum of Thirty Three Thousand One Hundred Nine and
56/100 Dollars ($33,109.56), payable in equal monthly sums of Two Thousand Seven
Hundred Fifty Nine and13/100 Dollars ($2,759.13), in advance, promptly on the
first day of each calendar month of the Extension Term, without notice or
demand, the same being hereby waived, and without any setoff, deduction, or
recoupment whatsoever.
3. Escalation
in Basic Rental. The Basic Rental shall be increased annually
effective March 1, 2008 and on each March 1st
thereafter during the Extension Term by an amount equal to three (3%) of the
escalated Basic Rental then in effect, payable as follows:
|
YEAR
|
ANNUAL
BASE RENT
|
MONTHLY
BASE RENT
|
PER
SQUARE FOOT
|
|
3/1/08-2/28/09
|
$33,109.56
|
$2,759.13
|
$26.11
|
|
3/1/09-2/28/10
|
$34,102.80
|
$2,841.90
|
$26.89
|
|
3/1/10-2/28/11
|
$35,125.92
|
$2,927.16
|
$27.70
|
|
3/1/11-2/28/12
|
$36,179.64
|
$3,014.97
|
$28.53
|
|
3/1/12-2/28/13
|
$37,265.04
|
$3,105.42
|
$29.39
|
4. Improvements
During Extension Term. Tenant agrees to accept the Premises A
in its “as is” condition as of the Extension Term Commencement
Date.
5. Option to
Renew. Tenant shall have the right to extend the term of the
Lease for one (1) additional five-year lease term (the “Renewal Term”) upon the
following conditions:
(a) Tenant
has not been in default (past applicable notice and cure) at any time during the
Lease Term;
(b) Landlord
has made a good faith determination that Tenant remains
creditworthy;
(c) Tenant
has not previously assigned the Lease or sublet any part or all of the
Premises;
(d) Tenant
has delivered to Landlord written notice of its intention to exercise this
option not less than 180 days prior to the end of the Lease Term;
(e) all
lease terms for the Renewal Term shall be the same as in the initial Lease Term,
except that the annual Basic Rental for the Renewal Term shall be the then
current market rent for new leases in the building (but not less than the most
recent annual Basic Rental increased by three [3%] percent), and
(f) there
shall be no further option to renew the Lease Term.
Landlord and Tenant must sign an
amendment to the Lease extending the term as provided in this Section at least
150 days prior to the end of the Lease Term, all time periods for Tenant herein
being of the essence. If Landlord and Tenant fail to sign such an
amendment within the prescribed timeframe, then Tenant’s option to extend the
term of the Lease shall lapse and Tenant’s renewal option shall be of no force
or effect. The Renewal Option is personal to Tenant and is
non-transferable.
6. Brokerage. Landlord
and Tenant warrant that each has had no dealings with any broker or agent other
than Xxxxxxx & Xxxxxxxxx, Inc. in connection with the negotiation or
execution of this First Amendment, and each agrees to indemnify the other
against all costs, expenses, attorneys' fees or other liability for commissions
or other compensation or charges claimed by any other broker or agent claiming
the same by, or through such party.
8. Defined
Terms. Except as
otherwise expressly provided herein, all defined terms shall have the same
meanings as provided in the Lease.
9. Headings. Headings
contained in this First Amendment are for convenience only and are not
substantive to the provisions of this First Amendment.
10. Lease
Terms Ratified. Except as otherwise expressly provided herein,
and unless inconsistent with the terms hereof, all other terms, conditions and
covenants of the Lease are hereby ratified and confirmed, and shall apply to the
Extension Term.
(signatures
on following page)
IN
WITNESS WHEREOF, the parties have executed this First Amendment by affixing
their hands and seals as of the date noted above.
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TENANT:
|
|
|
WITNESS/ATTEST:
|
OLD
LINE BANK
|
|
X. X.
Xxxxxx
|
By:
/s/Xxxxxxxx X.
Xxxxxx [SEAL]
|
|
Name:
Xxxxxxxx X.
Xxxxxx
|
|
|
Its: Vice
President
|
|
|
LANDLORD:
|
|
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BALTIMORE
BOULEVARD ASSOCIATES LIMITED PARTNERSHIP
|
|
|
By:
Southern Management Corporation
|
|
|
WITNESS/ATTEST:
|
Its:
Authorized Management Agent
|
|
Xxxx
Xxxxx
|
By:
/s/ Xxxxxx
Xxxxx [SEAL]
|
|
|
Name:
Xxxxxx
Xxxxx
|
|
|
Its:
Authorized
Signatory
|
