Document:

Amended and Restated Advisory Contract

 Exhibit 10(a) 
  
 AMENDED AND RESTATED ADVISORY CONTRACT 
  
 THIS AMENDED AND RESTATED ADVISORY CONTRACT, effective as of October 1, 2005 (the “Contract”), is entered
into by and between the B. F. Saul Company (the “Advisor”), the B. F. Saul Real Estate Investment Trust (the “Trust”) and, solely with respect to Section A hereof, the B. F. Saul Advisory Company, L.L.C., a wholly owned
subsidiary of the Advisor (“Saul Advisory”). 
  
 WITNESSETH: 
  
 WHEREAS, on September 18, 1969, the
Trust entered into an advisory contract with the Advisor, which was amended from time to time; 
  
 WHEREAS, on May 1, 1972, the Trust, the Advisor and Saul Advisory entered into a contract by which the Advisor’s interest in said advisory contract, as amended, was assigned to Saul Advisory; 
  
 WHEREAS, said advisory contract, as amended from time to time, was amended
and restated in full as of July 1, 1974 and as of October 1, 1982, and has been further amended from time to time (the advisory contract as currently in effect is referred to herein as the “Existing Advisory Contract”);

  
 WHEREAS, Saul Advisory wishes to assign its rights and
obligations under the Existing Advisory Contract to the Advisor, and the Advisor wishes to assume the rights and obligations of Saul Advisory under the Existing Advisory Contract; 
  
 WHEREAS, the Trust wishes to consent to such assignment and assumption of the rights and obligations from Saul Advisory to
the Advisor; 
  
 WHEREAS, in connection with the assignment and
assumption of the Existing Advisory Contract, the parties hereto wish to terminate the Assignment and Guaranty Agreement dated May 1, 1972, as supplemented and amended, between the Advisor, Saul Advisory and the Trust (the “Assignment and
Guaranty”); 
  
 WHEREAS, the Trust and the Advisor have also
determined that it is appropriate to amend and restate the Existing Advisory Contract; 
  
 WHEREAS, the Trust, in connection with its affairs, desires avail itself of the experience, sources of information, advice, assistance, management and certain facilities of, and available to, the Advisor, and the
Trust also desires to have the Advisor continue to undertake certain duties and responsibilities and perform certain services as hereinafter set forth, on behalf of, and subject to the supervision and control of, the Trustees of the Trust (the
“Trustees”); and 
  
 WHEREAS, the Advisor is willing to
undertake and perform, subject to the supervision and control of the Trustees, the services hereinafter set forth. 

 NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the
parties agree as follows: 
  

	A.	Assignment 

  
 Saul Advisory hereby transfers and assigns to the Advisor all of its right in the Existing Advisory Contract (other than fees, reimbursement of expenses and rights to indemnity related to the period prior to
October 1, 2005) and agrees to the termination of the Assignment and Guaranty. 
  

	B.	Assumption 

  
 The Advisor hereby accepts such assignment of the Existing Advisory Contract and assumes and agrees to pay, perform and discharge in full and in a timely manner the obligations of Saul Advisory under or with respect
to the Existing Advisory Agreement, and agrees to the termination of the Assignment and Guaranty. 
  

	C.	Trust Consent 

  
 The Trust hereby consents to the assignment and assumption referred to in paragraphs A and B above, and to the termination of the Assignment and Guaranty.

  
 In addition, the Trust and the Advisor agree
to amend and restate the Existing Advisory Agreement as follows: 
  

	1.	Services and Duties of the Advisor. 

  
 A. The Advisor shall consult with the Trustees and officers of the Trust and furnish them with advice and recommendations regarding the
affairs of the Trust and perform the general management, financial, accounting, information technology, insurance, legal, tax and other administrative functions of the Trust as a business entity. As part of the general management function, the
Advisor shall supervise B. F. Saul Property Company and other third party contractors that perform leasing, property management, construction management, development, property-level accounting, property tax assessments and related disputes, and
other services for the Trust. The Advisor shall also perform such other services as the Trust determines is in the best interest of the Trust and within the purview of this contract. 
  
 B. The Advisor shall avoid taking any action that, in its good faith business judgment, would
(i) subject the Trust to regulation under the Investment Company Act of 1940, or (ii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Trust, or otherwise not be
permitted by the Declaration of Trust or Bylaws, each as amended from time to time, of the Trust, except if such action shall be ordered by the Trustees, in which case the Advisor shall notify promptly the Trustees of the Advisor’s judgment of
the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Trustees. In such event the Advisor shall have no liability for acting in accordance with the specific
instructions of the Trustees so given. 
  
 C. The
Advisor shall exercise all reasonable efforts to cause any property forming part of the Trust’s investments to be duly insured against loss or damage by fire, with extended coverage, and against such other insurable hazards and risks as is
customary and appropriate in the circumstances, and shall otherwise carry out the policies from time to time adopted by the Trust in connection with the protection of such investments. 

 D. The Advisor shall maintain a fidelity bond from a responsible surety company in such
amount as the Trust reasonably may specify from time to time covering the Trust and its funds and other property, which bond shall protect the Trust against all losses of any such funds or property from acts of the Advisor and its directors,
officers and employees. 
  
 E. In performing its
duties under this Contract and in dealing with third parties on behalf of the Trust, the Advisor shall act as the Trust’s agent, and shall have full authority to act on behalf of the Trust. 
  
 F. It is the intention of the parties that, subject to the
supervision and control of the Trustees, the Advisor’s functions shall encompass those performed by the senior management and corporate staff of a listed public company of comparable size but exclude the direct real estate operating functions,
which are to be performed by B. F. Saul Property Company and other third parties under the supervision of the Advisor. 
  

	2.	Expenses. 

  
 A. The Advisor shall provide and pay for all personnel, office space, equipment and supplies necessary for the performance of its duties
under this contract. The Trust will reimburse the Advisor for its travel, transportation and other related expenses incurred in the performance of its duties hereunder and for all expenses, direct and indirect, incurred for legal services in
connection with the performance of its duties hereunder (including reasonable hourly charges and allocated overhead for in-house counsel). 
  
 B. The Trust shall pay directly the following expenses with respect to its operations (or shall reimburse the Advisor for any of such
expenses that the Advisor incurs on behalf of the Trust): 
  
 (1) Interest and other costs of money borrowed by the Trust; 
  
 (2) Taxes, licenses and franchise fees imposed on the Trust, its properties, its income or its operations; 
  
 (3) Finders’ fees and brokerage commissions in
connection with the acquisition and disposition of assets by the Trust; 
  
 (4) Fees and expenses of land planners, engineers, appraisers, architects, contractors, leasing agents, property management agents, attorneys and other consultants and third parties hired to perform services for the
Trust; 
  
 (5) Costs of obtaining and maintaining
capital, including but not limited to, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees; charges of custodians, transfer agents, registrars, dividend disbursement agents, indenture trustees, authenticating
agents, paying agents, brokers, underwriters and banks providing services to the Trust; and printing, engraving and other expenses and taxes incurred in connection with issuance, distribution, transfer and stock exchange listing of the Trust’s
securities; 
  
 (6) Expenses connected directly
with payments to shareholders of dividends or distributions in cash or in any other form or payments of interest and principal on indebtedness of the Trust; 

 (7) Expenses in connection with communications to holders of the Trust’s securities,
including the cost of printing and mailing proxy solicitation materials and other reports and the cost of holding meetings of holders of securities; 
  
 (8) Fees and expenses for professional services, including outside counsel, engineers, appraisers and auditors for the Trust; 

 
 (9) Trustees’ fees and other costs incurred in
connection with the functioning of the Board of Trustees and Committees thereof; 
  
 (10) Costs of obtaining and maintaining membership in trade associations, including the costs of attending meetings of such associations;

  
 (11) Insurance premiums and related costs;
and 
  
 (12) Any other cost or expense that the
Trust determines is more appropriately borne by the Trust than the Advisor. 
  

	3.	Compensation. 

  
 A. The Trust shall pay the Advisor monthly as compensation for its services under this Contract a fee at the rate of $503,000 per month.
Upon the request of either the Trust or the Advisor, but at least annually, as of October 1 of each year, the Trust and the Advisor shall review the compensation of the Advisor to insure that it is fair and reasonable to both the Trust and the
Advisor and make any adjustment agreed upon. If they cannot agree on the amount of the adjustment, if any, within sixty (60) days, then the dispute shall be submitted to the Commercial Arbitration Rules of the American Arbitration Association.

  
 All amounts payable to the Advisor under the
subparagraph 3.A shall be due on the last day of each month or quarter as the case may be and an estimated payment may be made at that time or any time thereafter; however, by the mutual agreement of the parties hereto, payment of any monthly or
quarterly compensation or reimbursement may be deferred until the precise amount of said compensation has been calculated, but in no event shall said payment be deferred more than thirty (30) days after the end of the applicable period.

  

	4.	Compensation for Other Services. 

  
 A. In addition to the compensation provided in paragraph 3 herein, the Advisor and/or its affiliates may receive commissions on insurance
placed by them with respect to the property or operations of the Trust, provided that the premium charge for any such insurance is not more than any other bona fide premium proposed to the Trust in a competitive bid for such insurance by a reputable
company. 
  
 B. The Advisor and/or its affiliates
may also receive compensation from the Trust for (i) its or their services as a property manager and/or leasing agent for property owned by the Trust, or (ii) such other services as, in the opinion of the Trustees, are more appropriately
performed by the Advisor or its affiliates for separate compensation; provided that the terms of such agreements have been approved by a majority of the Trust’s Independent Trustees. For purposes of this Contract, the term “Independent
Trustees” shall mean Trustees that are without economic dependence on the Trust or the Advisor and its affiliates of a character that might interfere with the exercise of any independent judgment. 

	5.	Indemnification and Limited Liability. 

  
 A. The Trust will indemnify and hold harmless the Advisor, its officers, directors and employees from and against any liabilities, claims,
damages, costs or expenses arising out of the performance by the Advisor of its duties and services hereunder to the extent that such liabilities, claims, damages, costs or expenses are not covered by insurance, other than those attributable to the
Advisor’s bad faith, willful misfeasance, gross negligence or reckless disregard of the duties of the Advisor hereunder; and the Advisor will indemnify and hold harmless the Trust, each Trustee and each shareholder individually from and against
any liabilities, claims, damages, costs or expenses incurred by reason of acts on the part of the Advisor, its directors, officers or employees constituting bad faith, willful misfeasance, gross negligence or reckless disregard of the duties of the
Advisor hereunder. The Advisor assumes no responsibility under this Contract other than to render the services called for hereunder in good faith and shall not be responsible for any action of the Trustees in following or declining to follow any
advice or recommendation of the Advisor. 
  
 B.
Anything in this Contract to the contrary notwithstanding, the Advisor shall not have or make any claim under, by reason of, or in connection with this Contract against the Trustees personally or the shareholders of the Trust, but shall look solely
to the property of the Trust for the payment of any such claim. The Advisor hereby acknowledges that it is familiar with the Declaration of Trust of the Trust as amended and in particular the provisions thereof relating to the non-liability of
shareholders and Trustees, to which reference is hereby made. 
  

	6.	Other Transactions. 

  
 A. Any individual, including any director, officer, shareholder or employee of the Advisor, may serve as a Trustee, officer, attorney,
agent or employee of the Trust and may be compensated by the Trust for his services rendered in any such capacity. However, the Advisor shall not for its own account, knowingly, directly or indirectly, purchase or otherwise acquire any property
from, or sell, assign, lease, or make any other transfer or other disposition to the Trust or enter into any agreement to lend any assets or property to the Trust, or borrow any assets or property from the Trust, nor shall any director, officer,
shareholder or employee of the Advisor or any corporation, partnership, trust or other entity with which a director, officer, shareholder or employee of the Advisor is affiliated by reason of being a trustee of, partner with or owner of more than
one percent (1%) equity interest therein, directly or indirectly purchase or otherwise acquire any property from, or sell, assign, lease or make any other transfer or other disposition to, the Trust. Notwithstanding the prohibitions in the
preceding sentence, the following transactions are permitted: (1) those between the Trust and Chevy Chase Bank, F.S.B. and its subsidiaries; (2) those designed to accord the Trust the rights granted under subparagraph 6.B. herein; and
(3) those which have been approved, as fair and reasonable to the Trust’s shareholders, by a majority of the Trust’s Independent Trustees who are not otherwise connected with the transactions in question. 
  
 Nothing in the foregoing part of this subparagraph 6.A.
shall be deemed to prevent the Advisor, an affiliate thereof, or any corporation or other enterprise in which the Advisor, its directors, officers, shareholders or employees may own more than one percent (1%) equity interest therein, from
entering into business relationships (including joint ventures or partnerships) with corporations or any other enterprises that may from time to time have dealings with the Trust provided such interest is disclosed prior to any such dealings.

 B. Nothing in this Contract shall limit or restrict the right of the Advisor or any
officer or employee of the Advisor, irrespective of whether he is also a Trustee, officer or employee of the Trust, to engage in any other business or to render services of any kind to any other partnership, corporation, firm, individual or
association. It is specifically understood and agreed that affiliates of the Advisor are engaged, and will continue to engage, on behalf of themselves and as agents, employees or officers for others in the business of originating and servicing
mortgage loans, the development of residential, commercial and industrial properties, and all other phases of the general real estate and mortgage banking business. However, before the Advisor or its officers and directors may make or acquire any
loan secured by a mortgage or any other interest in real estate, or make or acquire any equity or other investment in real estate for their own account or present or recommend it to others, they are obligated to present such investment opportunity
to the Trust if (i) such opportunity is within the Trust’s current business plan, investment objectives and policies, (ii) such opportunity is of a character that could be taken by the Trust, and (iii) the Trust has the financial
resources to take advantage of such opportunity. 
  

	7.	Term and Termination. 

  
 A. Subject to the cancellation provision in subparagraph 7.C below, this Contract shall be in force until September 30, 2006, and
shall continue thereafter from year to year unless cancelled by either party at the end of any contract year, upon written notice, given at least sixty (60) days prior to the end of any such contract year. 
  
 B. This Contract shall terminate automatically in the event
of its assignment by the Advisor without the written consent of the Trust and shall not be assignable by the Trust without the written consent of the Advisor, except in the case of assignment by the Trust of substantially all of its operations and
assets to a corporation or other organization that is a successor to the Trust, and such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Trust hereunder. 
  
 C. This Contract shall be terminated immediately upon
written notice of termination given by the Trust in the event that (a) the Advisor shall violate any material provision of this Contract and upon written notice of such violation, shall not cure such default within thirty (30) days or
(b) the Advisor shall be adjudged bankrupt or insolvent by a court of competent jurisdiction or an order shall be made by a court of competent jurisdiction for the appointment of a receiver of the Advisor and any such adjudication or order
shall remain in force or unstayed for a period of thirty (30) days. 
  
 D. From and after the effective date of termination of this Contract pursuant to subparagraphs 7.A, 7.B or 7.C hereof, the Advisor shall not be entitled to compensation under paragraph 3 herein for further services
but shall be entitled to compensation for services performed for the Trust prior to the effective date of termination. Nothing in this paragraph shall affect the right of the Advisor or its affiliates to receive compensation under the separate
contractual agreements referred to in paragraph 4.B. herein. Upon such termination, the Advisor shall forthwith: 
  
 (1) Pay over to the Trust all money collected and held for the account of the Trust pursuant to this Contract, after deducting any accrued
compensation and reimbursement for its expenses to which it is then entitled; 

 (2) Deliver to the Trust a full accounting, including a statement showing all payments
collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Trust; and 
  
 (3) Deliver to Trust all property, investments, papers, documents, records and other materials of the Trust then in custody of the
Advisor. 
  
 E. In the event of the termination
of this Contract, the Advisor will cooperate with the Trust and take all reasonable steps requested to assist the Trust in making an orderly transition of the advisory function. If Advisor’s cooperation extends past the termination of this
Contract, the Trust shall pay the Advisor reasonable compensation for such post-termination transition services. 
  

	8.	Other Matters 

  
 A. Any notice, report or other communication required or permitted to be given hereunder shall be in writing and, unless some other method
of giving such notice, report or other communication is accepted by the party to whom it is given, shall be deemed to have been duly given or made as of the date delivered or sent if delivered personally or sent by facsimile (providing confirmation
of transmission) or sent by prepaid overnight carrier (providing proof of delivery) to the parties at the following addresses or facsimile numbers (or at such other addresses or facsimile numbers as shall be specified by the parties by like notice):

  

			
	The Trust:	  	B. F. Saul Real Estate Investment Trust
	 	  	7501 Wisconsin Avenue
	 	  	Suite 1500
	 	  	Bethesda, Maryland 20814
	 	  	Fax: 301.986-6023
	 	  	Attn: Secretary
		
	The Advisor:	  	B. F. Saul Company
	 	  	7501 Wisconsin Avenue
	 	  	Suite 1500
	 	  	Bethesda, Maryland 20814
	 	  	Fax: 301.986.6023
	 	  	Attn: Secretary

  
 Either party may at
any time give notice in writing to the other party that it wishes to change its address and facsimile number for the purpose of this paragraph. 
  
 B. This Contract shall not be changed, modified, terminated or discharged in whole or in part except by an instrument in writing signed by
both parties hereto. 
  
 C. This Contract shall
bind any successors or permitted assigns of the parties hereto. 
  
 D. The provisions of this Contract shall be construed and interpreted in accordance with the laws of the State of Maryland in effect at the time (without giving effect to the application of choice of law provisions
that could result in the application of the law of any other jurisdiction). 
  
 E. This Contract shall become effective as of the date first written above. 

 IN WITNESS WHEREOF, the Advisor and the Trust have caused this Contract to be executed by their duly
authorized officers as of the date first written above. 
  

			
	B.F. SAUL COMPANY
		
	By:	 	 /s/ B. Francis Saul II

	Name:	 	B. Francis Saul II
	Title:	 	President
	
	B.F. SAUL REAL ESTATE INVESTMENT TRUST
		
	By:	 	 /s/ B. Francis Saul III

	Name:	 	B. Francis Saul III
	Title:	 	Senior Vice President

  
 Accepted and agreed solely with respect to Section A hereof as of the date first written above. 
  

			
	B.F. SAUL ADVISORY COMPANY, L.L.C.
		
	By:	 	 /s/ Patrick T. Connors

	Name:	 	Patrick T. Connors 
	Title:	 	Senior Vice PresidentForm of Commercial Asset Management and Leasing Agreement

 Exhibit 10(c) 
  
 FORM OF 
 COMMERCIAL ASSET MANAGEMENT AND LEASING AGREEMENT 
  
 THIS COMMERCIAL ASSET MANAGEMENT AND LEASING AGREEMENT (this “Agreement”) is made and entered into as of the                  day of
                , 200     (the “Effective Date”), by and between
                        , a
                      , having its principal office at 7501 Wisconsin Avenue, Suite 1500 East, Bethesda, MD 20814-6522 (hereafter
referred to as “Owner”), and B. F. Saul Property Company, a Maryland corporation, having its principal corporate office at 7501 Wisconsin Avenue, Suite 1500 East, Bethesda, MD 20814-6522 (hereafter referred to as
“Manager”). 
  
 A. Owner owns the real property
and improvements thereon located at                         , commonly known as
                         (hereafter referred to as the “Property”), including a
    -story office building of approximately                          rentable square feet
(hereafter referred to as the “Building”). 
  
 B.
Subject to the terms and provisions of this Agreement, Owner desires to appoint Manager as its property manager for the Property, and Manager wishes to accept such rights and responsibilities. 
  
 NOW THEREFORE, in consideration of the mutual covenants and promises herein
contained, it is agreed as follows: 
  
 1. Appointment of
Manager. Owner hereby appoints and designates Manager as its property manager for the Property, subject to all the terms and conditions of this Agreement, including Schedules A and B and any addendum attached hereto and
incorporated herein. 
  
 2. Management Duties. 

 
 (a) Owner hereby authorizes Manager, and Manager agrees, to do all
things necessary to manage and lease the Property in accordance with this Agreement. Without limiting the foregoing (except as specifically provided for herein), Manager shall be authorized and Manager agrees to perform the management services set
forth in clauses (i)-(v) of this Paragraph 2(a). 
  
 (i)
Owner hereby appoints Manager its Attorney-in-Fact to collect rents and other charges or income from the Property, and to cause compliance with the terms of all existing and future leases entered into and covering any portion of the Property. In
connection with the foregoing, Manager may engage collection agencies and/or legal counsel, file and prosecute actions to recover possession of any leased space, or settle, compromise or release such actions, in each case without Owner’s prior
approval (unless the amount in controversy represents twenty percent (20%) or more of the gross rent from the Property in a particular month); provided, however, that all costs incurred therefor by Manager, including court costs and
attorneys’ fees, shall be paid by Owner. Notwithstanding the foregoing, Manager, in its sole discretion, may waive current-month late charges 

 and, subject to preapproved policy, settle any dispute arising in connection with the payment or
collection of rent or other income pertaining to the Property. 
  
 (ii) Manager shall forward to Owner all security deposits of tenants, such deposits to be held by Owner. 
  
 (iii) Manager shall perform the leasing responsibilities described in Paragraph 3 of this Agreement. 
  
 (iv) Manager shall maintain the Property as provided in Paragraph 5 of this
Agreement. 
  
 (v) Owner hereby appoints Manager its
Attorney-in-Fact to institute any proceeding or application for a reduction in the real estate tax assessment of the Property for the current and any future tax year during the term of this Agreement. 
  
 (b) If on-site employees are required, Owner shall provide rent-free office
space at the Property to Manager, which space shall be sufficient to accommodate Manager’s employees in the performance of Manager’s obligations hereunder. Owner shall also provide parking spaces for Manager’s on-site building staff.
The area and location of such office space and parking shall be agreed upon by Owner and Manager. All costs and expenses of operating and maintaining such office space and parking shall be paid by Owner, which costs and expenses shall include, but
not be limited to, providing adequate furniture, equipment and supplies, heat, electricity and air conditioning, refuse removal and other utilities and other costs and expenses related to such office space and parking. 
  
 3. Leasing Duties. 
  
 (a) Manager will perform the usual and customary duties and functions of an
exclusive leasing agent for the Property in a faithful and diligent manner and shall use the diligent efforts of its organization to obtain tenants, and to negotiate leases with such tenants, for the Property. Manager’s leasing responsibilities
may include the following services: 
  
 (i) Prepare a study of
the Property market area and prepare a marketing plan for the Property. 
  
 (ii) Install appropriate signage on the Property. 
  
 (iii) Obtain and investigate prospective tenants for the Property and obtain references, business plans and credit reports on such prospective tenants. 
  
 (iv) Meet with Owner’s Representative (as defined in Paragraph 14) on a regular basis to keep Owner apprised of the
progress of the leasing activities and to review and approve prospective tenants for the Property. 
  

 2 

 (v) Introduce the Property to the brokerage community and mail promotional material to prospective
tenants and brokers. 
  
 (b) Other Lease Agent. Upon the
mutual agreement of Owner and Manager, Owner may retain another brokerage firm to act as an exclusive leasing agent (hereafter referred to as an “Other Lease Agent”) for the procurement of leases for new tenants at the Property.
Manager will coordinate the activities of any Other Lease Agent and advise Owner regarding the proposed leases obtained by any Other Lease Agent. 
  
 4. Independent Contractor. Manager shall act as an independent contractor and not as employee or, except as otherwise expressly provided herein,
agent of Owner. 
  
 5. Maintenance and Operation of the
Property. 
  
 (a) On the basis of an operating schedule, job
standards and wage rates previously approved by Owner, Manager shall select, employ, supervise and discharge all employees required to operate, lease, maintain and manage the Property in accordance with the terms of this Agreement. Such personnel
shall, in every instance, be employees of Manager, and compensation for the services of such employees (as evidenced by payroll documents, worker’s compensation and all other benefits, and direct overhead FICA, FUTA, health, etc.) shall be
considered an expense of Owner and paid bi-weekly by Manager. In addition, Owner shall pay the apportioned salary and payroll charges of off-site personnel who provide special services to the Property not normally provided by Manager, such as, but
not limited to, mechanical specialists, engineers, architects, legal counsel, marketing specialists and dedicated project accountants, if applicable. Such persons shall be paid in accordance with Schedule B hereto, but only if Owner shall
have specifically requested such special services and shall have agreed to the charge for such services. The term “payroll charges” or “direct overhead” as used herein shall be deemed to include, but not be limited to, payroll
taxes, unemployment insurance, worker’s compensation insurance, medical insurance, life insurance, pension charges, office rent, office operating expenses and employee recruitment costs (provided that Manager shall provide Owner annually with a
schedule setting forth the percentage of costs of Manager’s worker’s compensation insurance program allocable to each property managed by Manager, and Owner shall be responsible only for the percentage of such costs allocable to the
Property). 
  
 (b) Manager shall not be liable to Owner or to
others for any act or omission on the part of any on-site personnel hired by Manager in the name of Owner, or for any act or omission of any other person employed, retained, supervised, or contracted with by Manager on behalf of Owner, provided
Manager has taken due professional care in the employment, retaining or contracting of said individuals or business entities and it is not grossly negligent or guilty of willful misconduct in its supervision of such individuals or entities.

  
 (c) Manager shall keep the Property in a clean and orderly
condition, make or supervise all necessary repairs to the Property and purchase all supplies necessary for the operation of the Property, as approved by Owner. Manager shall not make any expenditure the cost of which would vary from the amount
provided for such expenditure in the Budget (as defined in Paragraph 8) by more than $10,000 or ten percent (10%), in either case without first obtaining 

  

 3 

 
the approval of Owner. Notwithstanding the foregoing, the prior approval of Owner shall not be required for monthly or recurring expenses and bills, such as
utilities, mortgage payments, management compensation, compensation of on-site employees, normal monthly recurring expenses such as, but not limited to, trash removal, routine equipment maintenance and repairs, janitorial service and the like, and
payments to any reserve and replacement or other escrow account (if any). In the event emergency repairs are required to protect the Property from damage, to mitigate further damage or to avoid the suspension of necessary services to tenants,
Manager shall be authorized to make any required expenditures. Manager shall promptly notify Owner of the nature and approximate cost of any such emergency repair, but in no event later than three (3) business days after authorizing such
repair. 
  
 (d) Any rebate or discount obtained by Manager in
connection with an expenditure made pursuant to this Paragraph 5 shall inure to the benefit of Owner. 
  
 (e) Manager shall have the authority to negotiate and enter into service contracts with respect to the Property for periods not in excess of one year, in
the name of and at the expense of Owner, provided that the cost is not in excess of the approved Budget amount. Manager shall be responsible for supervising and monitoring all services performed by subcontractors. Manager shall review all contracts
in force as of the date of this Agreement and the performance of the contractor thereunder and shall recommend whether Owner should continue or terminate such contracts. 
  
 6. Trustee Account. 
  
 (a) Subject to the terms of any loan to which the Property is subject, all rents and other charges collected by Manager from tenants of the Property
pursuant to Paragraph 2(a) shall be deposited by Manager in a trustee account (hereafter “Trustee Account”) maintained at Chevy Chase Bank or such other bank, as long as it is federally insured, as may be designated by Owner.
Manager shall not be held responsible for the failure of such bank or institution. Any funds in excess of that necessary for day to day management of the Property, as determined by Owner and Manager, shall be deposited in an interest-bearing account
with all benefits accruing to Owner. Manager shall transmit said funds to Owner pursuant to written instructions provided by Owner. 
  
 (b) Manager shall not be required to advance any of its own funds on behalf of the Property or Owner, and Owner agrees to pay all of the Property’s
operating costs. If Manager elects to advance any of its own funds, which shall not exceed Two Thousand Dollars ($2,000.00), in connection with the operation of the Property, Owner agrees to reimburse Manager for such amounts within ten
(10) days of receiving written notice from Manager. If funds are not reimbursed within ten (10) days of such written notice, the amount unpaid shall also bear interest current with the then-prime interest rate published or quoted by Chevy
Chase Bank. 
  
 7. Monthly Statement. 
  
 (a) On or about the 10th day of each month, beginning with the first month
following the date of this Agreement, Manager shall render to Owner a monthly statement summarizing the income earned and expenses incurred during the period covered by the statement, an accounts receivable statement, a capital tracking report, and
a rent roll, in each case for the preceding month. 

  

 4 

 
In addition, Manager shall submit a monthly management letter to Owner setting forth information regarding the condition of the Property, any operating
problems which have occurred or are foreseen at the Property, and other general information of importance in the management of the Property. Manager also shall provide such other property information and reports to Owner as may be required pursuant
to the terms of any loan to which the Property is subject. 
  
 (b)
Manager shall keep and maintain a purchase order system with respect to purchases for the Property exceeding $5,000.00. 
  
 8. Budgets. 
  
 (a) Prior to September 30 of each year of the term of this Agreement, Manager shall submit to Owner a proposed operating budget (the
“Budget”) for the fiscal year beginning the following October 1st (the “Fiscal Year”). The proposed budget shall set forth the estimated income, operating and capital expenses for the Property for the Fiscal
Year, such as real estate taxes, utilities, mortgage payments, insurance premiums, employees’ salaries, maintenance expenses, reserves for replacement and other similar items. 
  
 (b) At the time Manager submits the Budget to Owner as provided in Paragraph 8(a) above, Manager shall provide Owner with
recommendations of any procedures that Manager deems advisable for the more efficient and economic management and operation of the Property. 
  
 9. Management, Leasing, and Other Fees. 
  
 (a) Management and Leasing Fees. As compensation for the services rendered by Manager under this Agreement, Owner shall during the term hereof pay
Manager the fees set forth in Schedule A. Such fees shall be deducted by Manager on a monthly basis from the gross rents actually collected. 
  
 (b) Legal and Other Fees. In the event Manager employs, with the prior consent of Owner, “in house” counsel, Owner will reimburse Manager
in accordance with Schedule B. 
  
 (c) Project
Management Fee. Manager may, as agent for Owner, execute contracts with general contractors consistent with the Budget for maintenance of the Building or for improvements to be constructed for tenants of the Building or as otherwise requested by
Owner. Manager will coordinate or administer such tenant improvements, fire or disaster renovation, or major building improvements over and above normal management services, and Manager shall be entitled to additional compensation in accordance with
Schedule A. 
  
 (d) Tenant Construction Administration
Fee. If Manager, at Owner’s request, acts as construction supervisor with respect to tenant improvements, Manager shall be entitled to additional compensation in accordance with Schedule A. 
  
 10. Insurance. Owner shall place all property and liability insurance
with respect to the Property as is deemed to be appropriate in Owner’s reasonable discretion, subject to the requirements of applicable law and the terms of any loan to which the Property is subject, and shall 

  

 5 

 
name Manager as additional insured on any policy and provide Manager with thirty (30) days’ written notice of policy cancellation. 
  
 11. Responsibility of Owner to Provide Information and Perform Other
Acts. Owner shall promptly furnish Manager with all documents and records required for the management of the Property, including, but not limited to, all architectural, mechanical and other building and tenant as-built plans; all leases with
tenants of the Property and all amendments and correspondence related thereto; copies of any service contracts in effect with respect to the Property as of the date of this Agreement; all copies of applicable insurance policies; and a current tenant
register containing each tenant’s rental payment record (prepaid or delinquent). 
  
 12. Indemnification. 
  
 (a) Owner shall indemnify, defend, and hold Manager harmless from any and all claims, costs (including reasonable attorneys’ fees), damage, liability, or loss Manager may suffer as a result of claims, costs, demands, or judgments
against it arising out of the performance of Manager’s duties, obligations, and powers under this Agreement or arising out of acts or omissions of parties to any contracts or subcontracts entered into by Manager pursuant to this Agreement.
Notwithstanding the foregoing, Owner shall not be required to indemnify or defend Manager or be responsible in any manner for any liabilities resulting from the gross negligence or willful malfeasance of Manager, or resulting from the reckless
disregard of Manager’s obligations under this Agreement. 
  
 (b) Manager shall have no responsibility for the compliance of the Property (or any equipment contained therein) with the requirements of any statue, ordinance, law, or regulation, except to notify Owner in writing promptly of any written
complaints, warnings, notices, or summonses received by Manager relating to such matters, provided that Manager shall use its commercially reasonable efforts to see that such violations do not occur. Notwithstanding this Paragraph 12(b), should
Manager act as a general contractor for projects described in Paragraph 9(c), rather than contracting with a third-party general contractor pursuant to Paragraph 9(c), Manager shall comply with and have responsibility for the administration of
tenant renovations, fire or disaster renovations or major building improvements. 
  
 13. Effective Dates and Termination. 
  
 (a) This Agreement shall be effective as of the Effective Date, and, unless sooner terminated as provided herein, shall continue in full force and effect through September 30, 200_1. If, during a particular year of the term of this Agreement, neither party terminates this Agreement pursuant to Paragraph
13(b) or (c), this Agreement shall automatically be extended for successive one-year periods subject to the terms and conditions contained herein. 
  
 (b) In the event that either party shall materially breach the terms of this Agreement, this Agreement may be terminated upon ten (10) days’
written notice, such termination date to be effective as of midnight on the tenth (10th) day following receipt
of such notice by the non- 
  

	1	 Initial term of no more than one year, ending on September 30. 

  

 6 

 
terminating party; provided that in the event that such breach has been cured or, in the case of Manager’s default, Manager has demonstrated that the
cure has been substantially completed within said 10-day period, or a mutually agreed upon extension of time, then such notice of termination shall be ineffective. 
  
 (c) This Agreement may be terminated upon sixty (60) days’ written notice by either party without cause and such
termination shall be effective as of midnight on the sixtieth (60th) day following receipt of such notice by
the non-terminating party. 
  
 14. Owner’s
Representative. 
  
 At the time of execution of this
Agreement, the Owner’s Representative shall be B. Francis Saul III, the [title] of the Owner. The Owner’s Representative or his designee shall exercise all duties, obligations, powers, and rights of Owner under the terms of this
Agreement. Owner may change the Owner’s Representative by notifying Manager in writing of the name and address of a new Owner’s Representative. In exercising its rights and powers and fulfilling its duties and obligations under this
Agreement, Manager shall deal only with Owner’s Representative or his designee. 
  
 15. Governing Law. 
  
 This Agreement shall be governed by the laws of the State of Maryland, without giving effect to choice of law provisions that would result in the application of the law of any other jurisdiction. 
  
 16. General Provisions. 
  
 (a) This Agreement may be modified only by a written instrument signed by
the parties hereto. 
  
 (b) This Agreement shall be for the
benefit of, and binding upon, the heirs, successors, transferees, and assigns of the parties hereto. Neither party may assign this Agreement without the written consent of the other party. 
  
 (c) If a petition in bankruptcy is filed by or against either Owner or
Manager, or if either Owner or Manager makes an assignment for the benefit of creditors or takes advantage of any insolvency statute or proceeding, the other party may terminate this Agreement upon ten (10) days’ prior written notice.

  
 (d) Except as required by law or the terms of any loan to
which the Property is subject, Manager shall not disclose to any third person financial or other information relating to this Agreement, the Property or Owner. 
  

(e) If the date by which or on which any act required to be performed under this Agreement falls on a non-business day, then such act shall be
performed by or on the next following business day. 
  

 7 

 (f) Manager shall insert, to the extent practicable, in all agreements prepared or executed by it on
behalf of Owner, a provision that the officers, employees and shareholders of Owner shall not be personally liable thereunder and that the other parties shall look solely to the property of Owner for the payment of any claim thereunder. 

 
 17. Notice. Any notice required under the terms of this Agreement
shall be valid if in writing and mailed by regular mail, postage prepaid, as follows: 
  
 If to Owner: 
  

	 	

 c/o B. F. Saul Real Estate Investment Trust

 7501 Wisconsin Avenue, Suite 1500 East 
 Bethesda, Maryland 20814-6522 
 Attn.: Legal Department 
  
 If to Manager: 
  
 B. F. Saul Property
Company 
 7501 Wisconsin Avenue, Suite 1500 East 
 Bethesda, Maryland 20814-6522 
 Attn.: Legal Department 
  
 18.
Waiver of Subrogation. Manager and Owner each hereby waives any and all rights of recovery, claim, action or cause of action against the other for any loss or damage to the Property that is caused by or results from risks insured under any
insurance policies carried or required to be carried by Owner or Manager hereunder. 
  
 19. No Third-Party Beneficiary. This Agreement is intended for the exclusive benefit of the parties hereto and, except as otherwise expressly provided herein, shall not be for the benefit of, and shall not
create any rights in, or be enforceable by, any other person. 
  
 20. No Partnership. Nothing in this Agreement shall be construed as establishing a partnership or joint venture between Owner and Manager. 
  
 21. Complete Agreement. This document forms the complete Agreement and represents the full arrangement between Owner and Manager for all property
management and leasing services for the Property. 
  
 22.
Subordination. This Agreement is subject and subordinate to the lien, operation and effect of all mortgages, deeds of trust, or ground leases now or hereafter encumbering the Property. This provision shall be self-executing, but Manager
shall, upon request, execute such instruments as may be reasonably requested by Owner, or any mortgagee or lender, to evidence such subordination. 
  

 8 

 23. Effect of Termination. The termination of this Agreement for any reason shall not affect any
right, obligation or liability that has accrued under this Agreement on or before the effective date of such termination. Upon termination of this Agreement, Manager will cooperate with Owner and do all things reasonably necessary to achieve an
efficient transition of the management of the Property without detriment to the rights of Owner, or to the continued management of the Property. Without limiting the foregoing, upon such termination, Manager shall (i) assign to Owner or to such
person or persons as Owner may direct, all service contracts and other agreements that Manager may have executed on behalf of the Owner, as authorized by this Agreement, and (ii) deliver to Owner or to such person or persons as Owner may direct
all documents, permits, books, records and accounts, rent rolls, insurance policies, software licensed to the Property, files and other material relating to the Property in Manager’s possession, except that Manager shall have no obligation to
deliver to Owner any proprietary information of Manager. All personal property of Owner, whether located at the Property or elsewhere, shall be delivered to Owner or its representative or designee or as Owner otherwise directs. Within thirty
(30) days after such termination, Manager shall deliver to Owner a final accounting to Owner in such form as requested by Owner. 
  
 24. Estoppel Certificates. Each party hereto, at any time and from time to time during the term of this Agreement, shall promptly, but in no event
later than ten (10) business days after written request by the other party hereto, execute, acknowledge and deliver to such requesting party or to any person designated by such requesting party, a certificate stating: (i) that this
Agreement is unmodified and in full force and effect (or, if there have been modifications, that this Agreement is in full force and effect as modified, and identifying the modification agreements); (ii) the date to which any sum due and
payable pursuant to this Agreement has been paid; (iii) whether or not there is any existing default by either party hereto with respect to which a notice of default has been served, and if there is any such default, specifying the nature and
extent thereto; (iv) whether or not there are any setoffs, defenses or counterclaims against enforcement of the obligations to be performed hereunder existing in favor of the party executing such certificate and (v) any other information
relating to this Agreement reasonably requested by the requesting party. 
  
 25. Representations. (a) Manager represents, warrants and covenants as follows: (i) Manager has the full power and authority to enter into this Agreement; (ii) there are not written or oral
agreements by Manager that will be breached by, or agreements in conflict with, Manager’s performance under this Agreement; (iii) where necessary, Manager will be duly licensed and able to perform all of the duties under this Agreement as
of the Effective Date and throughout the term of this Agreement and shall comply with and abide by all laws, rules, regulations and ordinances pertaining thereto; and (iv) Manager has the experience necessary to perform the obligations required
hereunder and it possesses the status and experience necessary for the provision of the services hereunder. 
  
 (b) Owner represents and warrants that Owner has the full power and authority to enter into this Agreement, and the person executing this Agreement on
behalf of Owner is authorized to do so. 
  
 [Signature page
follows] 
  

 9 

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

  

					
	OWNER:	 	 
		
	  

	 	 ,    

			
	a	 	  

	 	 
			
	By:	 	  

	 	 
			
	Name:	 	  

	 	 
			
	Title:	 	  

	 	 
			
	Date:	 	  

	 	 
		
	MANAGER:	 	 
		
	 B. F. SAUL PROPERTY COMPANY,
 a Maryland
corporation
	 	 
			
	By:	 	  

	 	 
			
	Name:	 	  

	 	 
			
	Title:	 	  

	 	 
			
	Date:	 	  

	 	 

  

 10 

 SCHEDULE A 
  
 Management and Leasing Fees 
  

Management Fees 
  

			
	 Management Fee
	  	Five percent (5.0%) of gross collections*, or $5,000 per month, whichever is greater.
		
	 Project Management Fee
	  	Eight percent (8%) of the project costs, gross construction costs or building improvement costs (in any case including personnel costs and related overhead). If, with the consent of Owner,
Manager also acts as general contractor, Owner shall pay Manager a negotiated fee which shall constitute Manager’s compensation for the services referenced in the first sentence of Paragraph 9(c).
		
	Tenant Construction Administration Fee	  	The greater of (i) one percent (1%) of the project costs, and (ii) the amount agreed to be paid to Owner by the applicable tenant in connection with the construction supervision services
related to the project.
	 	  	 

	*	Gross collections from tenants of the Property shall include, but not necessarily be limited to, basic rent; prepaid rent; rent increases; consumer price index adjustments; tax,
utility, and operating cost pass throughs; lease termination payments and vending machine income. 

  
 Leasing Fees 
  

					
	 	  	 Manager’s Fee

	  	 Fees To Other Lease
 Agent &
Cooperating
 Brokers

	 Manager as Exclusive Broker
	  	 	  	 
			
	 New Leases
	  	 5.0% of rent
 collections**
	  	None
			
	 Options
	  	 5.0% of rent
 collections**
	  	None
			
	 Renewals
	  	 5.0% of rent
 collections**
	  	None
			
	 Manager with Co-broker
	  	 	  	 
			
	 New Leases
	  	 2.5% of rent
 collections**
	  	Market rates and terms as
approved by Owner
			
	 Options
	  	 2.5% of rent
 collections**
	  	Market rates and terms as
approved by Owner
			
	 Renewals
	  	 2.5% of rent
 collections**
	  	Market rates and terms as
approved by Owner
			
	 Manager with Other Lease Agent
	  	 	  	 
			
	 New Leases
	  	 1.0% of rent
 collections**
	  	Market rates and terms as
approved by Owner
			
	 Options
	  	 1.0% of rent
 collections**
	  	Market rates and terms as
approved by Owner
			
	 Renewals
	  	 1.0% of rent
 collections**
	  	Market rates and terms as
approved by Owner

	**	Rent collections from tenants of the Property shall include, but not necessarily be limited to, basic rent; prepaid rent; rent increases; and consumer price index adjustments.

 SCHEDULE B 
  
 Services Beyond the Scope of the Basic Agreement 
  

			
	Bank Lock Box Service Charges	  	At cost
		
	 Long distance telephone charges for collections
 and
other lease enforcement, postage and messenger
 or overnight deliveries
	  	At cost
		
	Labels for mailings	  	$10.00 + $.04 per unit per set of labels
		
	Bulk Materials reproduced at Manager’s offices	  	$.15 per copy
		
	Accrual accounting statements	  	 If requested, fee shall be negotiated
 between Manager
and Owner

		
	 Manager’s or Accountant’s
 time for performance
of items beyond
 the scope of this Agreement
	  	$80.00/hr.
		
	 Manager’s Chief Engineer licensed Stationary
 Engineering and to oversee or trouble
 shoot mechanical systems as required
	  	$75.00/hr.
		
	 Administrative Assistant’s time for performance
 beyond the scope of this Agreement
	  	$22.00/hr.
		
	 Manager, Accountant,
 or Collection Manager -
court
 appearances, depositions, warranty
 work beyond the scope
of this Agreement
	  	$80.00/hr.
		
	 Director of Property Management and/or
 Director of
Operations’ time for performance
 of items beyond the scope of this Agreement;
 i.e., attendance at meetings, court appearances,
 depositions, warranty work
	  	$120.00/hr.
		
	Manager’s “in house” legal counsel	  	$200.00 per hour

  

	*	All costs on this Schedule B are subject to annual adjustment as agreed upon by Owner and Manager. 

  

 12

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