Document:

Exhibit 10.1.12

 

Eleventh Amendment

To

Second Amended and Restated

Limited Partnership Agreement

Of

Corporate Office Properties, L.P.

 

This Eleventh
Amendment (the “Amendment”) to the Second Amended and Restated Limited
Partnership Agreement Of Corporate Office Properties, L.P., a Delaware limited
partnership (the “Partnership”), is made and entered into as of December 15,
2002, by the undersigned.

 

Recitals

 

A.            The Partnership is a limited
partnership organized under the Delaware Revised Uniform Limited Partnership
Act and governed by that certain Second Amended and Restated Limited
Partnership Agreement dated as of December 7, 1999 (the “Partnership
Agreement”).

 

B.            The sole general partner of the
Partnership is Corporate Office Properties Trust, a real estate investment
trust formed under the laws of the State of Maryland (the “General Partner”).

 

C.            Pursuant to Section 11.1 (b) (iii),
the General Partner desires to amend the Partnership Agreement to reflect the
admission, substitution, termination and/or withdrawal of various limited
partners in accordance with the terms of the Partnership Agreement.

 

NOW THEREFORE,
the General Partner, intending to be legally bound, hereby amends the
Partnership Agreement as follows, effective as of the date first set forth
above.

 

1.                                       Exhibit
1, Schedule of Partners, as attached hereto and by this reference made a part
hereof, is hereby substituted for and intended to replace any prior Exhibit 1
attached to a prior Amendment to the Partnership Agreement, and as attached hereto
shall be a full and complete listing of all the general and limited partners of
the Partnership as of the date of this Amendment, same being intended and
hereby superceding all prior Exhibit 1 listings.

 

In Witness
Whereof, the General Partner has executed this Amendment as of the day and year
first above written.

 

 

	
   

  	
   

  	
  Corporate
  Office Properties Trust, a

  Maryland Real Estate Investment Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Roger
  A. Waesche, Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Roger A. Waesche, Jr.

  
	
   

  	
   

  	
   

  	
  Senior Vice President

  

 

 

Schedule of Partners

 

	
  General
  Partner

  	
   

  	
  Partnership
  Units

  	
   

  
	
  Corporate Office Properties
  Trust

  	
   

  	
  21,569,614

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Limited
  Partners and Preferred Limited Partners

  	
   

  	
   

  	
   

  
	
  Jay H. Shidler

  	
   

  	
  452,878

  	
   

  
	
  Shidler Equities, L.P.

  	
   

  	
  2,995,439

  	
   

  
	
  Clay W. Hamlin, III

  	
   

  	
  568,492

  	
   

  
	
  LBCW Limited Partnership

  	
   

  	
  3,164,407

  	
   

  
	
  Robert L. Denton

  	
   

  	
  434,910

  	
   

  
	
  James K. Davis

  	
   

  	
  51,589

  	
   

  
	
  John E. De B. Blockey, Trustee
  of the John E. de B. Blockey Living Trust dated 9/12/88

  	
   

  	
  300,625

  	
   

  
	
  Henry  D. Bullock

  	
   

  	
  116,553

  	
   

  
	
  Frederick K. Ito Trust

  	
   

  	
  29,140

  	
   

  
	
  June Y. I. Ito Trust

  	
   

  	
  29,135

  	
   

  
	
  RPInvestments, LLC

  	
   

  	
  268,671

  	
   

  
	
  Denise J. Liszewski

  	
   

  	
  34,333

  	
   

  
	
  Samuel Tang

  	
   

  	
  22,889

  	
   

  
	
  Lawrence J. Taff

  	
   

  	
  13,733

  	
   

  
	
  Kimberly F. Acquino

  	
   

  	
  5,874

  	
   

  
	
  M.O.R. XXIX Associates Limited
  Partnership

  	
   

  	
  148,381

  	
   

  
	
  M.O.R. 44 Gateway Associates
  Limited Partnership

  	
   

  	
  1

  	
   

  
	
  John Parsinen

  	
   

  	
  90,000

  	
   

  
	
  M.O.R. Commons Limited
  Partnership

  	
   

  	
  7

  	
   

  
	
  John Edward De Burgh Blockey
  and Sanda Juanita Blockey

  	
   

  	
  50,476

  	
   

  
	
  Anthony Muscatello

  	
   

  	
  90,905

  	
   

  
	
  Lynn Hamlin

  	
   

  	
  121,411

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  30,559,463

  	
   

  

 

2

 

EXHIBIT 1

 

Addendum

 

	
  Series

  Preferred

  Units

  	
   

  	
  Preferred
  Limited

  Partner

  	
   

  	
  No. of

  Preferred

  Units

  	
   

  	
  Liquidation

  Preference

  Per

  Preferred

  Unit

  	
   

  	
  Priority

  Percentage

  Return*

  	
   

  	
  Priority

  	
   

  	
  Conversion

  Factor

  	
   

  	
  Conversion

  Commencement

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  General Partner

  	
   

  	
  1,250,000

  	
   

  	
  $

  	
  25

  	
   

  	
  2.50

  	
  %

  	
  Senior

  	
   

  	
  None

  	
   

  	
  N/A

  	
   

  
	
  C

  	
   

  	
  UPG

  	
   

  	
  1,016,662

  	
   

  	
  $

  	
  25

  	
   

  	
   

  	
  **

  	
  Senior

  	
   

  	
  2.381

  	
   

  	
  12/22/2000

  	
   

  
	
  D

  	
   

  	
  General Partner

  	
   

  	
  544,000

  	
   

  	
  $

  	
  25

  	
   

  	
  1.00

  	
  %

  	
  Senior

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  E

  	
   

  	
  General Partner

  	
   

  	
  1,150,000

  	
   

  	
  $

  	
  25

  	
   

  	
  2.5625

  	
  %

  	
  Senior

  	
   

  	
  None

  	
   

  	
  N/A

  	
   

  
	
  F

  	
   

  	
  General Partner

  	
   

  	
  1,425,000

  	
   

  	
  $

  	
  25

  	
   

  	
   

  	
   

  	
  Senior

  	
   

  	
  None

  	
   

  	
  N/A

  	
   

  

 

 

*              Priority Return Percentage is
expressed as a percentage of the Liquidation Preference per Distribution
Period.  See the Agreement for the definitions of “Priority Return
Percentage,” “Liquidation Preference” and “Distribution Period.”

 

**           Priority Percentage
Return for the Series C Preferred Units shall be:

 

2.25% from
December 21, 1999 to December 20, 2009;

2.625% from December 21, 2009 to December 20, 2014; and

3.00% thereafter.

 

The
Distribution Period for the Series C Preferred Units shall be each calendar
quarter ending March 31, June 30, September 30 and December 31 of each year.

 

***                           With
respect to any series of Preferred Units issued to the General Partner pursuant
to Section 4.2(B) of the Agreement, the Conversion Commencement Date and the
applicable Conversion Factor shall correspond to the conversion commencement
date and conversion factor of the related issuance of securities by the General
Partner as provided in Section 4.2(B) of the Agreement. See Section 9.8(A)(1) of the Agreement.

 

3Exhibit 10.6.2

 

EMPLOYMENT
AGREEMENT

RANDALL
M. GRIFFIN

 

This Employment Agreement (this “Agreement”), is made
and entered into as of the 12th day of September, 2002, by and between
Corporate Office Properties L.P., a Maryland limited liability company (the
“Employer”), and Corporate Office Properties Trust, a Maryland business trust
(“COPT”), and Randall M. Griffin (the “Executive”).

 

RECITALS

 

A.                                   The
Executive and former Employer Corporate Office Management Inc. (COMI) and
current employer Corporate Office Properties, L.P. (COPLP) executed an
agreement effective as of December 16, 1999 providing for the employment of the
Executive by the former/current Employer upon the terms and conditions therein
stated (the “Prior Agreement”).

 

B.                                     The
Employer (as referenced in the first paragraph) wishes to terminate the Prior
Agreement and to renegotiate a new Agreement to assure itself of the continued
services of the Executive for the period provided in this Agreement and the
Executive is willing to continue in the employ of the Employer on a full-time
basis for said period, and upon the other terms and conditions hereinafter
provided.

 

C.                                     The
Employer recognizes that circumstances may arise in which a change of control
of the Employer or COPT, through acquisition or otherwise, may occur, thereby
causing uncertainty of employment without regard to the competence or past
contributions of the Executive, and that such uncertainty may result in the
loss of valuable services of the Executive. Accordingly, the Employer and the
Executive wish to provide reasonable security to the Executive against changes
in the employment relationship in the event of any such change of control.

 

D.                                    COPT
has agreed to become a party to this Agreement for the purpose of assuming the
liabilities, obligations and duties of the Employer to the extent provided
herein.

 

E.                                      It
is the intention of the Employer and the Executive that, notwithstanding the
date of execution hereof, the Prior Agreement shall be terminated and this
Agreement shall become effective as of July 1, 2002.

 

NOW, THEREFORE, in consideration of the premises and
of the covenants and agreements hereinafter contained, it is covenanted and
agreed by and between the parties hereto as follows:

 

AGREEMENTS

 

1.                                       TERMINATION
OF PRIOR AGREEMENT.  The Prior Agreement
is hereby terminated and this Agreement shall become effective as of July 1,
2002 (the “Effective Date”).

 

 

2.                                       POSITION
AND DUTIES.  As of the Effective Date,
the Employer hereby employs the Executive as the President and Chief Operating
Officer of the Employer, or in such other capacity as shall be mutually agreed
between the Employer and the Executive. During the period of the Executive’s
employment hereunder, the Executive shall devote his best efforts and full
business time, energy, skills and attention to the business and affairs of the
Employer.  The Executive’s duties and
authority shall consist of and include all duties and authority customarily
performed and held by persons holding equivalent positions with business organizations
similar in nature and size to the Employer, as such duties and authority are
reasonably defined, modified and delegated from time to time by the Board of
Trustees of the Employer (the “Board”). The Executive shall have the powers
necessary to perform the duties assigned to him, and shall be provided such
supporting services, staff, secretarial and other assistance, office space and
accouterments as shall be reasonably necessary and appropriate in the light of
such assigned duties.

 

3.                                       COMPENSATION.
 As compensation for the services to be
provided by the Executive hereunder, the Executive shall receive the following
compensation and other benefits:

 

(a)                                  BASE
SALARY.  The Executive shall receive an
aggregate annual minimum “Base Salary” at the annualized rate of Four Hundred
Fifteen Thousand Dollars ($415,000.00) per annum, payable in periodic
installments in accordance with the regular payroll practices of the Employer.
Such Base Salary shall be subject to review annually by the Board and
Compensation Committee of COPT (“Compensation Committee”) during the term
hereof, in accordance with the established compensation policies of the
Compensation Committee.

 

(b)                                 PERFORMANCE
BONUS.  The Executive shall be entitled
to an annual cash “Performance Bonus,” payable within ninety (90) days after
the end of the fiscal year of the Employer the amount (if any) of which shall
be determined by the Board based upon the recommendation of the Compensation
Committee.

 

(c)                                  STOCK
OPTION/RESTRICTED SHARES.  Executive
shall be entitled to stock options and/or restricted shares as determined by
the Compensation Committee and the Board.

 

(d)                                 BENEFITS.  The Executive shall be entitled to all
perquisites extended to similarly situated executives, as such are stated in
the Employer’s Executive Perquisite Policy (the “Perquisite Policy”)
promulgated for the Board or the Compensation Committee, and which Perquisite
Policy is hereby incorporated by reference, as amended by the Board or the
Compensation Committee from time to time. In addition, the Executive shall be
entitled to participate in all plans and benefits generally, from time to time,
accorded to employees of the Employer (“Benefit Plans”), all as determined by
the Board from time to time based upon the input of the Compensation Committee.
Executive shall also receive additional benefits as follows:

 

(i)                                     a
one thousand two hundred fifty dollar ($1,250.00) per month automobile
allowance and

 

2

 

(ii)                                  six
thousand dollars ($6,000.00) per year for personal financial planning and
personal income tax preparation.

 

(e)                                  WITHHOLDING.  The Employer shall be entitled to withhold,
from amounts payable to the Executive hereunder, any federal, state or local
withholding or other taxes or charges which it is from time to time required to
withhold. The Employer shall be entitled to rely upon the opinion of its
independent accountants, with regard to any question concerning the amount or
requirement of any such withholding.

 

4.                                       TERM
AND TERMINATION.

 

(a)                                  BASIC
TERM.  The Executive’s employment
hereunder shall be for a six (6) year basic term (the “Basic Term”), commencing
as of the Effective Date.  After the
Basic Term, the Executive’s term of employment shall automatically be extended
for a continuous, self-renewing one (1) year term without further action of the
parties unless either party shall have served written notice on the other at
least six (6) months prior to the expiration of the Basic Term that this
Agreement shall terminate at the end of the Basic Term.  If this Agreement is extended beyond the
Basic Term, either party may at any time thereafter give written notice to the
other party that the term of this Agreement will expire on the date that is one
(1) year following the date of such written notice.  Subject to the foregoing and other applicable terms of this
Agreement, this Agreement may be terminated by either party, with or without
cause, effective as of the first (1st) business day after written notice to
that effect is delivered to the other party.

 

(b)                                 PREMATURE
TERMINATION.

 

(i)                                     In the event of the termination of
the employment of the Executive under this Agreement by the Employer for any
reason other than expiration of the term hereof, termination upon disability in
accordance with the provisions of paragraph (f) of this Section 4, or a
“for-cause” termination in accordance with the provisions of paragraph (d) of
this Section 4, then notwithstanding any actual or allegedly available
alternative employment or other mitigation of damages by or available to the
Executive, the Executive shall be entitled to a “Termination Payment” equal to
the sum of:  (w) three (3) times the
rate of annualized Base Salary then payable to the Executive, plus (x) three
(3) times the average of the three (3) most recent annual Performance Bonuses
that the Executive received; provided, however that if the Executive has been
employed by the Employer fewer than three (3) years, then the amount set forth
in (x) above, shall be equal to three (3) times the average of the annual
Performance Bonuses that the Executive has theretofore received from the
Employer.  For purposes of calculating
the Termination Payment amounts due, the Executive’s employment with the
Employer shall be agreed to have commenced on July 1, 1999. In the event of a
termination governed by this subparagraph (b) of Section 4, the Employer shall
also: (y) allow a period of eighteen (18) months following the termination of
employment for the Executive (but in no event beyond the expiration of any
option term or period specified in the option agreement with the Executive) to
exercise any options granted under any stock option or share incentive plan
established by Employer or COPT (“Stock Plan”); and (z) continue for the

 

3

 

Executive
(provided that such items are not available to him by virtue of other
employment secured after termination) the perquisites, plans and benefits
provided under the Employer’s Perquisite Policy and Benefit Plans as of and
after the date of termination, [all items in (z) being collectively referred to
as “Post-Termination Perquisites and Benefits”], for the lesser of the number
of full months the Executive has theretofore been employed by the Employer (but
not less than twelve (12) months) or twenty four (24) months following such
termination. The payments and benefits provided under (w), (x), (y) and (z)
above by the Employer shall not be offset against or diminish any other
compensation or benefits accrued as of the date of termination.

 

(ii)                                  Notwithstanding
the vesting schedule otherwise applicable, in the event of a termination
governed by this subparagraph (b) of Section 4, the Executive shall be fully
vested in all of the Executive’s options and restricted shares under any Stock
Plan or similar program.

 

(iii)                               Any
cash payments to the Executive under this Section 4(b) will be made monthly
over twelve (12) months, unless otherwise mutually agreed by the parties to
minimize the Executives’ tax burden in any year.

 

(c)                                  CONSTRUCTIVE
TERMINATION. If at any time during the term of this Agreement, except in
connection with a “for-cause” termination pursuant to paragraph (d) of this
Section 4, the Executive is Constructively Discharged (as hereinafter defined),
then the Executive shall have the right, by written notice to the Employer
given within one hundred and twenty (120) days of such Constructive Discharge,
to terminate his services hereunder, effective as of thirty (30) days after
such notice, and the Executive shall have no rights or obligations under this
Agreement other than as provided in Sections 5 and 6 hereof.  The Executive shall in such event be
entitled to a Termination Payment of Base Salary and Performance Bonus compensation
as well as all of the Post-Termination Perquisites and Benefits, as if such
termination of his employment had been effectuated pursuant to paragraph (b) of
this Section 4.

 

For purposes of this Agreement, the Executive shall be
deemed to have been “Constructively Discharged” upon the occurrence of any one
of the following events:

 

(i)                                     The
Executive is not re-elected to, or is removed from, the position with the
Employer as set forth in Section 2 hereof, other than as a result of the
Executive’s election or appointment to positions of equal or superior scope and
responsibility; or

 

(ii)                                  The
Executive shall fail to be vested by the Employer with the powers, authority
and support services normally attendant to any of said offices; or

 

(iii)                               The
Employer shall notify the Executive that the employment of the Executive will
be terminated or materially modified in the future or that the Executive will
be Constructively Discharged in the future; or

 

4

 

(iv)                              The
Employer changes the primary employment location of the Executive to a place
that is more than fifty (50) miles from the primary employment location, 8815
Centre Park Drive, Columbia, Maryland 21045, as of the Effective Date of this
Agreement; or

 

(v)                                 The
Employer otherwise commits a material breach of its obligations under this
Agreement.

 

(d)                                 TERMINATION
FOR CAUSE. The employment of the Executive and this Agreement may be terminated
“for-cause” as hereinafter defined. Termination “for- cause” shall mean the
termination of employment on the basis or as a result of (i) a material
violation by the Executive of any applicable material law or regulation
respecting the business of the Employer; (ii) the Executive being found guilty
of, or being publicly associated with, to the Employer’s detriment, a felony or
an act of dishonesty in connection with the performance of his duties as an
officer of the Employer, or the Executive’s commission of an act which in the
opinion of a reasonable third party disqualifies the Executive from serving as
an officer or director of the Employer; or (iii) the willful or negligent
failure of the Executive to perform his duties hereunder in any material
respect. The Executive shall be entitled to at least thirty (30) days’ prior
written notice of the Employer’s intention to terminate his employment for any
cause (except the Executive’s death), specifying the grounds for such
termination, affording the Executive a reasonable opportunity to cure any
conduct or act (if curable) alleged as grounds for such termination, and a reasonable
opportunity to present to the Board his position regarding any dispute relating
to the existence of such cause.  In the
event the Employer terminates the Executive’s employment “for cause” the
Executive shall be entitled only to the Base Salary through the date of the
termination of the Executive’s employment “for cause” and any other additional
benefit in accordance with applicable plans, programs or agreements with the
Employer.

 

(e)                                  TERMINATION
UPON DEATH. In the event payments are due and owing under this Agreement at the
death of the Executive, such payments shall be made to such beneficiary,
designee or fiduciary as Executive may have designated in writing, or failing
such designation, to the executor or administrator of his estate, in full settlement
and satisfaction of all claims and demands on behalf of the Executive. Such
payments shall be in addition to any other death benefits of the Employer made
available for the benefit of the Executive, and in full settlement and
satisfaction of all payments provided for in this Agreement.  Notwithstanding the vesting schedule
otherwise applicable in the event of a termination governed by this
subparagraph (e) of Section 4, all of options and restricted shares granted to
the Executive under any Stock Plan or similar program shall be fully vested.

 

(f)                                    TERMINATION
UPON DISABILITY. The Employer may terminate the Executive’s employment after
the Executive is determined to be disabled under the long-term disability
program of the Employer then covering the Executive or by a physician engaged
by the Employer and reasonably approved by the Executive. In the event of a
dispute regarding the Executive’s “disability,” such dispute shall be resolved
through arbitration as provided in paragraph (d) of Section 11 hereof, except
that the arbitrator appointed by the American Arbitration Association shall be
a duly licensed medical doctor. The Executive shall be entitled to the
compensation and benefits provided for under this Agreement during any period
of

 

5

 

incapacitation occurring during the term of this Agreement, and
occurring prior to the establishment of the Executive’s “disability” during
which the Executive is unable to work due to a physical or mental infirmity.
Notwithstanding anything contained in this Agreement to the contrary, until the
date specified in a notice of termination relating to the Executive’s
disability, the Executive shall be entitled to return to his positions with the
Employer as set forth in this Agreement, in which event no disability of the
Executive will be deemed to have occurred. 
Notwithstanding the vesting schedule otherwise applicable, in the event
of a termination governed by this subparagraph (f) of Section 4, the Executive
shall be fully vested in all of the Executive’s options and restricted shares
under any Stock Plan or similar program.

 

(g)                                 TERMINATION
UPON CHANGE OF CONTROL.

 

(i)                                     In
the event of a Change in Control (as defined below) and the termination of the
Executive’s employment by Executive or by the Employer under either 1 or 2
below, the Executive shall be entitled to a Termination Payment equal to the
sum of: (w) the rate of annualized Base Salary then payable to the Executive
multiplied by the number of years then remaining in the contract term (but not
less than three (3) years); plus (x) the average of the three (3) most recent
Performance Bonuses that the Executive received (or if less, the average of the
annual Performance Bonuses that the Executive has theretofore received from the
Employer) multiplied by the number of years then remaining in the contract term
(but not less than three (3) years). 
The Employer shall also continue for the Executive the Post-Termination
Perquisites and Benefits as provided in paragraph (b) of this Section 4;
provided, however, that notwithstanding the vesting schedule otherwise
applicable, immediately following a Change in Control (whether or not the
Executive’s employment is terminated), the Executive shall be fully vested in
all of Executive’s options and restricted shares outstanding under any Stock
Plan or similar program and shall be allowed a period of eighteen (18) months
following the termination of employment of the Executive for the Executive’s
exercise of such options. The following shall constitute termination under this
paragraph:

 

1.                                       The
Executive terminates his employment under this Agreement pursuant to a written
notice to that effect delivered to the Board within six (6) months after the
occurrence of the Change in Control.

 

2.                                       Executive’s
employment is terminated, including Constructively Discharged, by the Employer
or its successor either in contemplation of or after Change in Control, other
than on a for-cause basis.

 

(ii)                                  For purposes of this paragraph, the
term “Change in Control” shall mean the following occurring after the date of
this Agreement:

 

1.                                       The consummation of the acquisition
by any person, (as such term is defined in Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the “1934 Act”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
fifty percent (50%) or more of the

 

6

 

combined
voting power embodied in the then outstanding voting securities of COPT or the
Employer; or

 

2.                                       Approval
by the stockholders of COPT or the Employer of: (1) a merger or consolidation
of COPT or the Employer, if the stockholders of COPT or the  Employer immediately before such merger or
consolidation do not, as a result of such merger or consolidation, own,
directly or indirectly, more than fifty percent (50%) of the combined voting
power of the then outstanding voting securities of the entity resulting from
such merger or consolidation in substantially the same proportion as was
represented by their ownership of the combined voting power of the voting
securities of COPT or the Employer outstanding immediately before such merger
or consolidation; or (2) a complete or substantial liquidation or dissolution,
or an agreement for the sale or other disposition, of all or substantially all
of the assets of COPT or the Employer.

 

Notwithstanding the foregoing, a Change in Control
shall not be deemed to occur solely because fifty percent (50%) or more of the
combined voting then outstanding securities is acquired by: (1) a trustee or
other fiduciary holding securities under one or more employee benefit plans
maintained for employees of the entity; or (2) any corporation or other entity
which, immediately prior to such acquisition, is owned directly or indirectly
by the stockholders of COPT or the Employer in the same proportion as their
ownership of stock in COPT or the Employer immediately prior to such
acquisition.

 

(iii)                               If
it is determined, in the opinion of the Employer’s independent accountants, in
consultation with the Employer’s independent counsel, that any amount payable
to the Executive by the Employer under this Agreement, or any other plan or
agreement under which the Executive participates or is a party, would constitute
an “Excess Parachute Payment” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”) and be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), the Employer
shall pay to the Executive a “grossing-up” amount equal to the amount of such
Excise Tax and all federal and state income or other taxes with respect to
payment of the amount of such Excise Tax, including all such taxes with respect
to any such grossing-up amount. If at a later date, the Internal Revenue
Service assesses a deficiency against the Executive for the Excise Tax which is
greater than that which was determined at the time such amounts were paid, the
Employer shall pay to the Executive the amount of such unreimbursed Excise Tax
plus any interest, penalties and professional fees or expenses, incurred by the
Executive as a result of such assessment, including all such taxes with respect
to any such additional amount. The highest marginal tax rate applicable to
individuals at the time of payment of such amounts will be used for purposes of
determining the federal and state income and other taxes with respect thereto.
The Employer shall withhold from any amounts paid under this Agreement the
amount of any Excise Tax or other federal, state or local taxes then required
to be withheld. Computations of the amount of any grossing-up supplemental
compensation paid under this subparagraph shall be made by the Employer’s
independent accountants, in consultation with the Employer’s independent legal

 

7

 

counsel. The Employer shall pay all accountant and
legal counsel fees and expenses.

 

(h)                                 VOLUNTARY
TERMINATION.  In the event of a
termination of employment by the Executive on his own initiative, other than a
termination due to death, disability or a Constructive Discharge, the Executive
shall have the same entitlements as provided in paragraph (d) of this Section 4
for a termination “for-cause.”

 

5.                                       CONFIDENTIALITY
AND LOYALTY. The Executive acknowledges that heretofore or hereafter during the
course of his employment he has produced and received, and may hereafter
produce, receive and otherwise have access to various materials, records, data,
trade secrets and information not generally available to the public
(collectively, “Confidential Information”) regarding the Employer and its
subsidiaries and affiliates. Accordingly, during and subsequent to termination
of this Agreement, the Executive shall hold in confidence and not directly or
indirectly disclose, use, copy or make lists of any such Confidential
Information, except to the extent that such information is or thereafter
becomes lawfully available from public sources, or such disclosure is
authorized in writing by the Employer, required by law or by any competent
administrative agency or judicial authority, or otherwise as reasonably
necessary or appropriate in connection with the performance by the Executive of
his duties hereunder. All records, files, documents, computer diskettes,
computer programs and other computer-generated material, as well as all other
materials or copies thereof relating to the Employer’s business, which the
Executive shall prepare or use, shall be and remain the sole property of the
Employer, shall not be removed from the Employer’s premises without its written
consent, and shall be promptly returned to the Employer upon termination of the
Executive’s employment hereunder. The Executive agrees to abide by the
Employer’s reasonable policies, as in effect from time to time, respecting
confidentiality and the avoidance of interests conflicting with those of the
Employer.

 

6.                                       NON-COMPETITION COVENANT.

 

(a)                                  RESTRICTIVE
COVENANT. The Employer and the Executive have jointly reviewed the tenant
lists, property submittals, logs, broker lists, and operations of the Employer,
and have agreed that as an essential ingredient of and in consideration of this
Agreement and the payment of the amounts described in Sections 3 and 4 hereof,
the Executive hereby agrees that, except with the express prior written consent
of the Employer, for a period equal to the lesser of the number of full months
the Executive has at any time been employed by the Employer or twenty-four (24)
months after the termination of the Executive’s employment with the Employer
(the “Restrictive Period”), he will not directly or indirectly compete with the
business of the Employer, including, but not by way of limitation, by directly
or indirectly owning, managing, operating, controlling, financing, or by directly
or indirectly serving as an employee, officer or director of or consultant to,
or by soliciting or inducing, or attempting to solicit or induce, any employee
or agent of Employer to terminate employment with Employer and become employed
by any person, firm, partnership, corporation, trust or other entity which owns
or operates a business similar to that of the Employer (the “Restrictive
Covenant”). For purposes of this subparagraph (a), a business shall be
considered “similar” to that of the Employer if it is engaged in the
acquisition, development, ownership, operation, management or leasing of
suburban office property (i) in any geographic market or submarket in which the

 

8

 

Employer owns more than 750,000 s.f. of properties either as of the
date hereof or as of the date of termination of the Executive’s employment. If
the Executive violates the Restrictive Covenant and the Employer brings legal
action for injunctive or other relief, the Employer shall not, as a result of
the time involved in obtaining such relief, be deprived of the benefit of the full period
of the Restrictive Covenant. Accordingly, the Restrictive Covenant shall be
deemed to have the duration specified in this paragraph (a) computed from the
date the relief is granted but reduced by the time between the period when the
Restrictive Period began to run and the date of the first violation of the
Restrictive Covenant by the Executive. In the event that a successor of the
Employer assumes and agrees to perform this Agreement or otherwise acquires the
Employer, this Restrictive Covenant shall continue to apply only to the primary
service area of the Employer as it existed immediately before such assumption
or acquisition and shall not apply to any of the successor’s other offices or
markets. The foregoing Restrictive Covenant shall not prohibit the Executive
from owning, directly or indirectly, capital stock or similar securities which
are listed on a securities exchange or quoted on the National Association of
Securities Dealers Automated Quotation System which do not represent more than
five percent (5%) of the outstanding capital stock of any corporation.

 

(b)                                 REMEDIES
FOR BREACH OF RESTRICTIVE COVENANT. The Executive acknowledges that the
restrictions contained in Sections 5 and 6 of this Agreement are reasonable and
necessary for the protection of the legitimate proprietary business interests
of the Employer; that any violation of these restrictions would cause
substantial injury to the Employer and such interests; that the Employer would
not have entered into this Agreement with the Executive without receiving the
additional consideration offered by the Executive in binding himself to these
restrictions; and that such restrictions were a material inducement to the
Employer to enter into this Agreement. In the event of any violation or
threatened violation of these restrictions, the Employer shall be relieved of
any further obligations under this Agreement, shall be entitled to any rights, remedies
or damages available at law, in equity or otherwise under this Agreement, and
shall be entitled to preliminary and temporary injunctive relief granted by a
court of competent jurisdiction to prevent or restrain any such violation by
the Executive and any and all persons directly or indirectly acting for or with
him, as the case may be, while awaiting the decision of the arbitrator selected
in accordance with paragraph (d) of Section 11 of this Agreement, which
decision, if rendered adverse to the Executive, may include permanent
injunctive relief to be granted by the court.

 

7.                                       INTERCORPORATE
TRANSFERS. If the Executive shall be voluntarily transferred to an affiliate of
the Employer, such transfer shall not be deemed to terminate or modify this Agreement,
and the employing corporation to which the Executive shall have been
transferred shall, for all purposes of this Agreement, be construed as standing
in the same place and stead as the Employer as of the date of such transfer.
For purposes hereof, an affiliate of the Employer shall mean any corporation or
other entity directly or indirectly controlling, controlled by, or under common control with the
Employer. The Employer shall be secondarily liable to the Executive for the
obligations hereunder in the event the affiliate of the Employer cannot or
refuses to honor such obligations. For all relevant purposes hereof, the tenure
of the Executive shall be deemed to include the aggregate term of his
employment by the Employer or its affiliate.

 

8.                                       INTEREST
IN ASSETS. Neither the Executive nor his estate shall acquire hereunder any
rights in funds or assets of the Employer, otherwise than by and through the
actual

 

9

 

payment of amounts payable hereunder; nor shall the Executive or his
estate have any power to transfer, assign (except into a trust for purposes of
estate planning), anticipate, hypothecate or otherwise encumber in advance any
of said payments; nor shall any of such payments be subject to seizure for the
payment of any debt, judgment, alimony, separate maintenance or be transferable
by operation of law in the event of bankruptcy, insolvency or otherwise of the
Executive.

 

9.                                       INDEMNIFICATION.

 

(a)                                  The
Employer shall provide the Executive (including his heirs, personal
representatives, executors and administrators), during the term of this
Agreement and thereafter throughout all applicable limitations periods, with
coverage under the Employer’s then-current directors’ and officers’ liability
insurance policy, at the Employer’s expense.

 

(b)                                 In
addition to the insurance coverage provided for in paragraph (a) of this
Section 9, the Employer shall defend, hold harmless and indemnify the Executive
(and his heirs, personal representatives, executors and administrators) to the
fullest extent permitted under applicable law, and subject to the requirements,
limitations and specifications set forth in the Bylaws and other organizational
documents of the Employer, against all expenses and liabilities reasonably incurred
by him in connection with or arising out of any action, suit or proceeding in
which he may be involved by reason of his having been an officer of the
Employer (whether or not he continues to be an officer at the time of incurring
such expenses or liabilities), such expenses and liabilities to include, but
not be limited to, judgments, court costs and attorneys’ fees and the cost of
reasonable settlements.

 

(c)                                  In
the event the Executive becomes a party, or is threatened to be made a party,
to any action, suit or proceeding for which the Employer has agreed to provide
insurance coverage or indemnification under this Section 9, the Employer shall,
to the full extent permitted under applicable law, advance all expenses
(including the reasonable attorneys’ fees of the attorneys selected by Employer
and approved by Executive for the representation of the Executive), judgments,
fines and amounts paid in settlement (collectively “Expenses”) incurred by the
Executive in connection with the investigation, defense, settlement, or appeal
of any threatened, pending or completed action, suit or proceeding, subject to
receipt by the Employer of a written undertaking from the Executive
covenanting: (i) to reimburse the Employer for all Expenses actually paid by the
Employer to or on behalf of the Executive in the event it shall be ultimately
determined that the Executive is not entitled to indemnification by the
Employer for such Expenses; and (ii) to assign to the Employer all rights of
the Executive to insurance proceeds, under any policy of directors’ and
officers’ liability insurance or otherwise, to the extent of the amount of
Expenses actually paid by the Employer to or on behalf of the Executive.

 

10.                                 ASSUMPTION
BY COPT.  By its execution of this
Agreement, COPT agrees to be secondarily liable to the Executive, and shall
assume the liabilities, obligations and duties of the Employer as contained in
this Agreement in the event the Employer cannot or refuses to honor such
obligations.

 

10

 

11.                                 GENERAL
PROVISIONS.

 

(a)                                  SUCCESSORS;
ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of
the Executive, the Employer and his and its respective personal
representatives, successors and assigns, and any successor or assign of the
Employer shall be deemed the “Employer” hereunder. The Employer shall require
any successor to all or substantially all of the business and/or assets of the
Employer, whether directly or indirectly, by purchase, merger, consolidation,
acquisition of stock, or otherwise, by an agreement in form and substance
satisfactory to the Executive, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent as the Employer would be
required to perform if no such succession had taken place.  No rights or obligations of the Executive
under this Agreement may be assigned or transferred by the Executive other than
his rights to compensation and benefits, which may be transferred only by will
or by operation of law.

 

(b)                                 ENTIRE
AGREEMENT; MODIFICATIONS. This Agreement constitutes the entire agreement
between the parties respecting the subject matter hereof, and supersedes all
prior negotiations, undertakings, agreements and arrangements with respect
thereto, whether written or oral. Except as otherwise explicitly provided
herein, this Agreement may not be amended or modified except by written
agreement signed by the Executive and the Employer.

 

(c)                                  ENFORCEMENT
AND GOVERNING LAW. The provisions of this Agreement shall be regarded as
divisible and separate; if any of said provisions should be declared invalid or
unenforceable by a court of competent jurisdiction, the validity and
enforceability of the remaining provisions shall not be affected thereby. This
Agreement shall be construed and the legal relations of the parties hereto
shall be determined in accordance with the laws of the State of Maryland as it
constitutes the situs of the corporation and the employment hereunder, without
reference to the law regarding conflicts of law.

 

(d)                                 ARBITRATION.
Except as provided in paragraph (b) of Section 6, any dispute or controversy
arising under or in connection with this Agreement or the Executive’s
employment by the Employer shall be settled exclusively by arbitration,
conducted by a single arbitrator sitting in Baltimore, MD in accordance with
the rules of the American Arbitration Association (the “AAA”) then in effect.
The arbitrator shall be selected by the parties from a list of eleven (11)
arbitrators provided by the AAA, provided that no arbitrator shall be related
to or affiliated with either of the parties. No later than ten (10) days after
the list of proposed arbitrators is received by the parties, the parties, or
their respective representatives, shall meet at a mutually convenient location
in Baltimore, Maryland, or telephonically. At that meeting, the party who
sought arbitration shall eliminate one (1) proposed arbitrator and then the
other party shall eliminate one (1) proposed arbitrator. The parties shall
continue to alternatively eliminate names from the list of proposed arbitrators
in this manner until each party has eliminated five (5) proposed arbitrators.
The remaining arbitrator shall arbitrate the dispute. Each party shall submit,
in writing, the specific requested action or decision it wishes to take, or
make, with respect to the matter in dispute, and the arbitrator shall be
obligated to choose one (1) party’s specific requested action or decision,
without being permitted to effectuate any compromise or “new” position;
provided, however, that the arbitrator is authorized to award amounts not in
dispute during the pendency of any dispute or controversy arising under or in
connection with this Agreement. The Employer shall bear the cost of all counsel,
experts or other representatives that are retained by both parties, together
with all costs of the arbitration proceeding, including, without limitation,
the fees, costs and expenses imposed or incurred by the arbitrator. Judgment
may be entered on

 

11

 

the arbitrator’s award in any court having jurisdiction; including, if
applicable, entry of a permanent injunction under paragraph (b) of Section 6.

 

(e)                                  PRESS
RELEASES AND PUBLIC DISCLOSURE. Any press release or other public communication
by either the Executive or the Employer with any other person concerning the
terms, conditions or circumstances of Executive’s employment, or the
termination of such employment, shall be subject to prior written approval of
both the Executive and the Employer, subject to the proviso that the Employer
shall be entitled to make requisite and appropriate public disclosure of the
terms of this Agreement, without the Executive’s consent or approval, as
required under applicable statutes, and the rules and regulations of the
Securities and Exchange Commission and the Stock Exchange on which the shares
of Employer may from time to time be listed.

 

(f)                                    WAIVER.
No waiver by either party at any time of any breach by the other party of, or
compliance with, any condition or provision of this Agreement to be performed
by the other party, shall be deemed a waiver of any similar or dissimilar
provisions or conditions at the same time or any prior or subsequent time.

 

(g)                                 NOTICES.
Notices given pursuant to this Agreement shall be in writing, and shall be
deemed given when received, and, if mailed, shall be mailed by United States
registered or certified mail, return receipt requested, postage prepaid.
Notices to the Employer shall be addressed to the principal headquarters of the
Employer, Attention: Chairman. Notices to the Executive shall be sent to the
address set forth below the Executive’s signature on this Agreement, or to such
other address as the party to be notified shall have given to the other.

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above written.

 

	
  “Employer”

  Corporate Office Properties, L.P., a

  Maryland limited liability company

  	
   

  	
  “Executive”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Clay W. Hamlin, III

  	
   

  	
  /s/ Randall M. Griffin

  	
   

  
	
   

  	
  Clay W. Hamlin, III, CEO

  	
   

  	
  Randall M. Griffin

  
	
   

  	
   

  	
  8815 Centre Park Drive, Suite 400

  
	
   

  	
   

  	
  Columbia, MD 21045

  
	
   

  	
   

  	
   

  
	
  Corporate Office Properties Trust, a Maryland

  business trust

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Clay W. Hamlin, III

  	
   

  	
   

  
	
   

  	
  Clay W. Hamlin, III, CEO

  	
   

  	
   

  
						

 

12

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