Document:

Exhibit
4.2

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY,”
WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES) TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NEITHER THIS SECURITY NOR
THE COMMON SHARES OF BENEFICIAL INTEREST ISSUABLE ON EXCHANGE OF THIS SECURITY
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR THE COMMON SHARES OF BENEFICIAL INTEREST ISSUABLE ON EXCHANGE OF
THIS SECURITY, NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)); (2)
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY OR ANY
COMMON SHARES OF BENEFICIAL INTEREST ISSUABLE ON EXCHANGE OF THIS SECURITY,
PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS
SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), ONLY (A) TO CORPORATE OFFICE PROPERTIES, L.P. (THE “ISSUER”), (B)
UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH
TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE UNDER RULE
144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (D) UNDER ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
UNDER CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3)
AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED
A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

THIS LEGEND WILL BE
REMOVED ON THE EARLIER OF THE TRANSFER OF THIS SECURITY UNDER CLAUSE 2(B) ABOVE
OR ON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR
ANY SUCCESSOR PROVISION).

 

CORPORATE OFFICE PROPERTIES, L.P.

3.50% EXCHANGEABLE SENIOR
NOTES DUE 2026

	
  No.:

  	
  PRINCIPAL AMOUNT

  
	
  CUSIP No.:
  22003BAA4

  	
  $200,000,000

  

 

CORPORATE OFFICE
PROPERTIES, L.P., a Delaware limited partnership (hereinafter called the “Issuer,” which term shall include any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to Cede & Co., or registered assigns, upon presentation, the principal sum
of $200,000,000 on September 15, 2026 and to pay interest on the outstanding
principal amount thereon from September 18, 2006 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semi-annually in arrears on March 15 and September 15 in each year, commencing
on March 15, 2007, at the rate of 3.50% per annum, until the entire principal
hereof is paid or made available for payment. The Notes will be fully and
unconditionally guaranteed by Corporate Office Properties Trust (the “Guarantor”), on a senior unsecured basis, in accordance with
the provisions of Article 16 of the
Indenture (as defined below).

The interest so
payable, and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this
Note is registered at the Close of Business on the Record Date for such
interest which shall be the March 1 or September 1, as the case may be, next
preceding such Interest Payment Date. Payment of the principal of and interest
on this Note will be made at the office or agency of the Issuer maintained for
that purpose; which shall be the Corporate Trust Office of the Trustee, or
elsewhere as provided in the Indenture, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that at the option of the Issuer, payment of
interest may be made by (i) check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or (ii) transfer
to an account of the Person entitled thereto located inside the United States.

Each Note of this
series is one of a duly authorized issue of securities of the Issuer (herein
called the “Notes”), issued under an
Indenture, dated as of September 18, 2006 (the “Indenture”),
between the Issuer, the Guarantor and Wells Fargo Bank, National Association,
as trustee (herein called the “Trustee”).
Reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Issuer,
the Trustee and the Holders of the Notes and of the terms upon which the Notes
are, and are to be, authenticated and delivered. This Note is one of the series
designated on the first page hereof, initially limited in aggregate principal
amount to $200,000,000, subject to the Issuer’s right to increase the aggregate
principal amount of such series from time to time.

In case an Event
of Default, as defined in the Indenture, shall have occurred and be continuing,
the principal of and interest on all Notes may be declared, and upon said
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

As provided in and
subject to the provisions of the Indenture, unless the principal of all of the
Notes of this series at the time Outstanding shall already have become due and
payable, the Holder of this Note shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver
or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Notes of this series, the Holders of not less than 25% in
principal amount of the Notes of this series at the time Outstanding shall have
made written request to the Trustee to institute proceedings in respect of such

 

Event of Default as
Trustee and offered the Trustee reasonable indemnity and the Trustee shall not
have received from the Holders of a majority in principal amount of Notes of
this series at the time Outstanding a direction inconsistent with such request,
and the Trustee shall have failed to institute any such proceeding for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Note for the
enforcement of any payment of principal hereof or any interest on or after the
respective due dates expressed herein.

Prior to September
20, 2011, the Issuer may not redeem the Notes except to preserve the Guarantor’s
status as a real estate investment trust as described in Section 3.01 of the
Indenture. Subject to the terms and conditions of the Indenture, on or after
September 20, 2011, the Issuer shall have the right to redeem the Notes, in
whole or from time to time in whole or part, at a price equal to 100% of the
principal amount of the Notes being redeemed, plus accrued and unpaid interest.
The Issuer shall not redeem the Notes until it has made at least 10 semi-annual
interest payments (including the interest payments on March 15, 2007 through
September 15, 2011) in the full amount required by this Indenture and the Notes.
Any such redemption shall be upon at least 30 days’ and no more than 60 days’
notice to Holders of the Notes.

Subject to the
terms and conditions of the Indenture, the Issuer will make all payments and
deliveries in respect of the Fundamental Change Repurchase Price, the Put Right
Repurchase Price, the redemption price and the principal amount on the Maturity
Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent
to collect such payments in respect of the Note. The Issuer will pay cash
amounts in money of the United States that at the time of payment is legal
tender for payment of public and private debts.

The Indenture
contains provisions permitting the Issuer and the Trustee in certain
circumstances, without the consent of the Holders of the Notes, and in other
circumstances, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Notes at the time Outstanding, evidenced as
in the Indenture provided, to execute supplemental indentures adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or modifying in any manner the
rights of the Holders of the Notes. It is also provided in the Indenture that
the Holders of a majority in aggregate principal amount of the Notes at the
time Outstanding may on behalf of the Holders of all of the Notes waive any
past default or Event of Default under the Indenture and its consequences
except as provided in the Indenture. Any such consent or waiver by the Holder
of this Note (unless revoked as provided in the Indenture) shall be conclusive
and binding upon such Holder and upon all future Holders and owners of this
Note and any Notes which may be issued in exchange or substitution hereof,
irrespective of whether or not any notation thereof is made upon this Note or
such other Notes.

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and accrued and unpaid interest on this
Note at the place, at the respective times, at the rate and in the lawful money
herein prescribed.

The Notes are
issuable in registered form without coupons in denominations of $1,000
principal amount and integral multiples thereof. At the office or agency of the
Issuer referred to on the face hereof, and in the manner and subject to the
limitations provided in the Indenture, without payment of any service charge
but with payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration or exchange of Notes,
Notes may be exchanged for a like aggregate principal amount of Notes of other
authorized denominations.

The Notes are not
subject to redemption through the operation of any sinking fund.

 

Upon the occurrence of a
Fundamental Change, the Holder has the right, at such Holder’s option, to
require the Issuer to repurchase all of such Holder’s Notes or any portion
thereof (in principal amounts of $1,000 or integral multiples thereof) on the
Fundamental Change Repurchase Date at a price equal to 100% of the principal
amount of the Notes such Holder elects to require the Issuer to repurchase,
together with accrued and unpaid interest to but excluding the Fundamental
Change Repurchase Date. The Issuer or, at the written request of the Issuer,
the Trustee shall deliver to all Holders of record of the Notes a notice of the
occurrence of a Fundamental Change and of the repurchase right arising as a
result thereof on or before the twentieth day after the occurrence of any
Fundamental Change.

On
September 15, 2011, September 15, 2016 or September 15, 2021,
the Holder has the right, at such Holder’s option, to require the Issuer to
repurchase all of such Holder’s Notes or any portion thereof (in principal
amounts of $1,000 or integral multiples thereof) at a price equal to 100% of
the principal amount of the Notes such Holder elects to require the Issuer to
repurchase, together with accrued and unpaid interest to but excluding the Put
Right Repurchase Date. Holders shall submit their Notes for repurchase to the
Paying Agent at any time from the opening of business on the date that is 25
Business Days prior to the applicable Put Right Repurchase Date until the Close
of Business on the fifth Business Day prior to the Put Right Repurchase Date.

Subject to the
provisions of the Indenture, the Holder has the right, at its option, to
exchange all or any portion (if the portion to be exchanged is $1,000 principal
amount or an integral multiple thereof) of such Notes at any time prior to the
Close of Business on the scheduled Trading Day immediately preceding September
20, 2011, into cash, Common Shares or a combination thereof, in each case at
the Exchange Rate specified in the Indenture, as adjusted from time to time as
provided in the Indenture. The initial Exchange Rate is 18.4162 Common Shares
for each $1,000 principal amount of Notes. No fractional Common Shares will be
issued upon any exchange, but an adjustment in cash will be paid to the Holder,
as provided in the Indenture, in respect of any fraction of a share which would
otherwise be issuable upon the surrender of any Note or Notes for exchange. No
adjustment shall be made for dividends or any shares issued upon exchange of
such Note except as provided in the Indenture.

Upon due
presentment for registration of transfer of this Note at the office or agency
of Note Registrar, a new Note or Notes of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange
thereof, subject to the limitations provided in the Indenture, without charge
except for any tax, assessments or other governmental charge imposed in
connection therewith.

The Issuer, the
Trustee, any Authenticating Agent, any Paying Agent, any Exchange Agent and any
Note Registrar may deem and treat the registered Holder hereof as the absolute
owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment hereof, or on account hereof, for the exchange
hereof and for all other purposes, and neither the Issuer nor the Trustee nor
any other Authenticating Agent nor any Paying Agent nor any other Exchange
Agent nor any Note Registrar shall be affected by any notice to the contrary. All
payments made to or upon the order of such registered Holder shall, to the
extent of the sum or sums paid, satisfy and discharge liability for monies
payable on this Note.

No recourse for
the payment of the principal of, or accrued and unpaid interest on, this Note,
or for any claim based hereon or otherwise in respect hereof, and no recourse
under or upon any obligation, covenant or agreement of the Issuer in the
Indenture or any indenture supplemental thereto or in any Note, or because of
the creation of any indebtedness represented thereby, shall be had against any
incorporator, shareholder, employee, agent, officer, director, trustee or
subsidiary, as such, past, present or future, of the Issuer or of any successor
corporation, either directly or through the Issuer or any successor corporation,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or

 

penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration
for the issue hereof, expressly waived and released.

Terms used in this
Note and defined in the Indenture are used herein as therein defined. Customary
abbreviations may be used in the name of a Holder or an assignee, such as TEN
COM (=tenants in common), TENANT (=tenants by the entireties), JT TEN (=joint
tenants with right of survivorship and not as tenants in common), CUST
(=custodian), and U/G/M/A (=Uniform gift to Minors Act).

THE INDENTURE AND
THE NOTES, INCLUDING THIS NOTE (WHICH SHALL BE DEEMED A CONTRACT MADE UNDER THE
LAWS OF THE STATE OF NEW YORK), SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused “CUSIP” numbers to be printed on the Notes
of this series as a convenience to the Holders of such Notes. No representation
is made as to the correctness or accuracy of such CUSIP numbers as printed on
the Notes, and reliance may be placed only on the other identification numbers
printed hereon.

No Holder of Notes
shall be entitled to exchange such Notes for Common Shares to the extent that
receipt of such Common Shares would cause such Holder (together with such
Holder’s affiliates) to exceed the applicable ownership limit contained in the
Amended and Restated Articles of Incorporation of the Guarantor as then in
effect.

[This
space intentionally left blank.]

 

Unless the
certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be duly executed by the
undersigned officer.

	
  

  	
  CORPORATE OFFICE PROPERTIES, L.P.

  
	
   

  	
   

  	
  By: Corporate Office Properties Trust, its general

  partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Roger A.
  Waesche, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Roger A. Waesche, Jr.

  
	
   

  	
   

  	
  Title: Executive Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CORPORATE OFFICE PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger A. Waesche, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Roger A. Waesche, Jr.

  
	
   

  	
   

  	
  Title: Executive Vice President

  
						

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION:

This is one of the
Notes of the series designated therein referred to in the within-mentioned
Indenture.

WELLS FARGO BANK,
NATIONAL ASSOCIATION, as Trustee

	
  By:

  	
  /s/ Lynn M. Steiner

  	
   

  
	
   

  	
     Authorized OfficerExhibit 10.1

Execution Copy

$175,000,000
AGGREGATE PRINCIPAL AMOUNT

CORPORATE
OFFICE PROPERTIES, L.P.

3.50%
EXCHANGEABLE SENIOR NOTES

DUE
2026

Registration
Rights Agreement

dated
September 18, 2006

 

REGISTRATION RIGHTS AGREEMENT, dated as of September
18, 2006, among Corporate Office Properties, L.P., a Delaware limited
partnership (the “Operating Partnership”),
Corporate Office Properties Trust, a Maryland real estate investment trust (the
“Company”), Banc of America Securities
LLC and J.P. Morgan Securities Inc., as representatives (the “Representatives”) of the several initial purchasers (the “Initial Purchasers”) under the Purchase Agreement (as
defined below).

Pursuant to the Purchase Agreement, dated as of
September 12, 2006, among the Company, the Representatives and the Initial
Purchasers (the “Purchase Agreement”), relating to
the initial placement (the “Initial Placement”)
of the Notes (as defined below), the Initial Purchasers have agreed to purchase
from the Operating Partnership $175,000,000 ($200,000,000 if the Initial
Purchasers exercise their option in full) 
in aggregate principal amount of 3.50% Exchangeable Senior Notes due
2026 (the “Notes”).  The Notes will be exchangeable, subject to
the terms thereof, into fully paid, nonassessable common shares of beneficial
interest, par value $0.01 per share, of the Company (the “Common
Shares”). The Notes will be fully and unconditionally guaranteed as
to the payment of principal and interest by the Company.  To induce the Initial Purchasers to purchase
the Notes, the Company has agreed to provide the registration rights set forth
in this Agreement whereby the Company agrees with you for your benefit and the
benefit of the holders from time to time of the Notes (including the Initial
Purchasers) (each a “Holder” and,
collectively, the “Holders”), as
follows:

1.             Definitions.  Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following capitalized defined terms shall have the following meanings:

“Act” shall mean
the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

“Affiliate”
shall have the meaning specified in Rule 405 under the Act and the terms “controlling” and “controlled”
shall have meanings correlative thereto.

“Automatic Shelf
Registration Statement” shall mean a Registration Statement filed by
a Well-Known Seasoned Issuer which shall become effective upon filing thereof
pursuant to General Instruction I.D for Form S-3.

“Broker-Dealer”
shall mean any broker or dealer registered as such under the Exchange Act.

“Business Day”
shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by
law to close in New York City.

“Closing Date”
shall mean the date of the first issuance of the Notes.

“Commission”
shall mean the Securities and Exchange Commission.

“Note” shall
have the meaning set forth in the preamble.

“Deferral Period”
shall have the meaning indicated in Section 3(i) hereof.

“DTC” shall mean
The Depository Trust Company, New York, New York.

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

 

“Exchange Price”
shall have the meaning specified in the Indenture.

“Final Memorandum”
shall mean the offering memorandum, dated September 12, 2006, relating to the
offering of the Notes, including any and all annexes thereto and any
information incorporated by reference therein as of such date.

“Free Writing Prospectus”
shall mean a free writing prospectus, as defined in Rule 405 under the Act.

“Holder” shall
have the meaning set forth in the preamble hereto.

“Indenture”
shall mean the Indenture relating to the Notes, dated as of September 18, 2006,
by and among the Operating Partnership, the Company, as guarantor, and Wells
Fargo Bank, N.A., as trustee, as the same may be amended from time to time in
accordance with the terms thereof.

“Initial Placement”
shall have the meaning set forth in the preamble hereto.

“Initial Purchasers”
shall have the meaning set forth in the preamble hereto.

“Issuer Free Writing
Prospectus” shall mean an issuer free writing prospectus, as defined
in Rule 433 under the Act.

“Losses” shall
have the meaning set forth in Section 5(d) hereof.

“Majority Holders”
shall mean, on any date, Holders of a majority of the Common Shares registered
under the Shelf Registration Statement.

“Managing Underwriters”
shall mean the investment banker or investment bankers and manager or managers
that administer an underwritten offering, if any, conducted pursuant to Section
6 hereof.

“NASD Rules”
shall mean the Conduct Rules and the By-Laws of the National Association of
Securities Dealers, Inc.

“Notice and Questionnaire”
shall mean a written notice delivered to the Company substantially in the form
attached as Annex A to the Final Memorandum.

“Notice Holder”
shall mean, on any date, any Holder of Registrable Securities that has
delivered a Notice and Questionnaire to the Company on or prior to such date.

“Prospectus”
shall mean a prospectus included in the Shelf Registration Statement
(including, without limitation, a prospectus that discloses information previously
omitted from a prospectus filed as part of an effective registration statement
in reliance upon Rule 430A or Rule 430B under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Common Shares covered by the Shelf Registration
Statement, and all amendments and supplements thereto, including any and all
exhibits thereto and any information incorporated by reference therein.

“Purchase Agreement”
shall have the meaning set forth in the preamble hereto.

“Registrable Securities”
shall mean Common Shares initially issuable in exchange for the Notes initially
sold to the Initial Purchasers pursuant to the Purchase Agreement other than
those that have (i)

 

been registered under the Shelf Registration Statement
and disposed of in accordance therewith, (ii) have become eligible to be sold
without restriction as contemplated by Rule 144(k) under the Act or any
successor rule or regulation thereto that may be adopted by the Commission and (iii)
ceased to be outstanding.

“Registration Default
Damages” shall have the meaning set forth in Section 7 hereof.

“Registration
Expenses” shall mean any and all expenses incident to performance of
or compliance by the Company and the Operating Partnership with this Agreement,
including without limitation: (i) all Commission or National Association of
Securities Dealers, Inc. (the “NASD”) registration and filing fees, including,
if applicable, the fees and expenses of any “qualified independent underwriter”
(and its counsel) that is required to be retained by any Holder of Registrable
Securities in accordance with the rules and regulations of the NASD, (ii) all
fees and expenses incurred in connection with compliance with state securities
or blue sky laws (including reasonable fees and disbursements of one counsel
for all underwriters or Holders as a group in connection with blue sky
qualification of any of the Registrable Securities) and compliance with the
rules of the NASD, (iii) all expenses of any Persons in preparing or assisting
in preparing, word processing, printing and distributing any Shelf Registration
Statement, any Prospectus and any amendments or supplements thereto, and in
preparing or assisting in preparing, printing and distributing any underwriting
agreements, securities sales agreements and other documents relating to the
performance of and compliance with this Agreement, (iv) the fees and
disbursements of counsel for the Company, the Operating Partnership and of the
independent certified public accountants of the Company and the Operating
Partnership, including the expenses of any “cold comfort” letters required by
or incident to the performance of and compliance with this Agreement, and (v)
the reasonable fees and expenses of any special experts retained by the Company
or the Operating Partnership in connection with the Shelf Registration
Statement.

“Shelf Registration Period”
shall have the meaning set forth in Section 2(c) hereof.

“Shelf Registration
Statement” shall mean a “shelf” registration statement of the
Company pursuant to the provisions of Section 2 hereof which covers some or all
of the Common Shares on an appropriate form under Rule 415 under the Act, or
any similar rule that may be adopted by the Commission, amendments and supplements
to such registration statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

“Underwriter”
shall mean any underwriter of Common Shares in connection with an offering
thereof under the Shelf Registration Statement.

“Well-Known Seasoned Issuer”
or “WKSI” shall have the meaning set forth
in Rule 405 under the Act.

2.             Shelf Registration.  (a) 
The Company shall as promptly as practicable (but in no event more than
90 days after the Closing Date) file with the Commission a Shelf Registration
Statement (which shall be, if the Company is, on the date of such filing, a
WKSI, an Automatic Shelf Registration Statement) providing for the registration
of, and the sale on a continuous or delayed basis by the Holders of, all of the
Registrable Securities, from time to time in accordance with the methods of
distribution elected by such Holders, pursuant to Rule 415 under the Act or any
similar rule that may be adopted by the Commission.

 

(b)           If the Shelf Registration Statement
is not an Automatic Shelf Registration Statement, the Company shall use its
reasonable efforts to cause the Shelf Registration Statement to become or be
declared effective under the Act no later than 180 days after the Closing Date.

(c)           The Company shall use its reasonable
efforts to keep the Shelf Registration Statement continuously effective,
supplemented and amended as required by the Act, in order to permit the
Prospectus forming part thereof to be usable by Holders for a period (the “Shelf Registration Period”) from the date the Shelf
Registration Statement is declared effective by the Commission (or becomes
effective in the case of an Automatic Shelf Registration Statement) until the
earlier of (i) the 20th trading day immediately following the maturity date of
the Notes or (ii) the date upon which there are no Notes or Registrable
Securities outstanding.  The Company
shall be deemed not to have used its reasonable efforts to keep the Shelf
Registration Statement effective during the Shelf Registration Period if it
voluntarily takes any action that would result in Holders of Registrable
Securities not being able to offer and sell such Common Shares at any time
during the Shelf Registration Period, unless such action is (x) required by
applicable law or otherwise undertaken by the Company in good faith and for
valid business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or divestiture of assets, and (y)
permitted by Section 3(i) hereof.  None
of the Company, the Operating Partnership or any of their respective
securityholders (other than Holders of Registrable Securities) shall have the
right to include any securities of the Company or the Operating Partnership in
any Shelf Registration Statement (other than an Automatic Shelf Registration
Statement) other than Registrable Securities.

(d)           The Company shall cause the Shelf
Registration Statement and the related Prospectus and any amendment or
supplement thereto, as of the effective date of the Shelf Registration
Statement or such amendment or supplement, (i) to comply in all material
respects with the applicable requirements of the Act; and (ii) not to contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements
therein (in the case of the Prospectus, in the light of the circumstances under
which they were made) not misleading.

(e)           The Company shall issue a press
release through a reputable national newswire service announcing the
anticipated effective date of the Shelf Registration Statement as promptly as
practicable prior to the anticipated effective date thereof.  Each Holder of Registrable Securities agrees
to deliver a Notice and Questionnaire and such other information as the Company
may reasonably request in writing, if any, to the Company at least 10 Business
Days prior to the anticipated effective date of the Shelf Registration
Statement as announced in the press release. 
From and after the effective date of the Shelf Registration Statement,
the Company shall use reasonable efforts, as promptly as is practicable after
the date a Notice and Questionnaire is delivered to the Company by a Holder,
and in any event within 20 Business Days after such date, (i) (A) if required
by applicable law, to file with the Commission a post-effective amendment to
the Shelf Registration Statement; provided, that the Company shall not
be required to file more than one post-effective amendment in any 90-day period
in accordance with this Section 2(e)(i) or (B) to prepare and, if permitted or
required by applicable law, to file a supplement to the related Prospectus or
an amendment or supplement to any document incorporated therein by reference or
file any other required document so that the Holder delivering such Notice and
Questionnaire is named as a selling securityholder in the Shelf Registration
Statement and the related Prospectus, and so that such Holder is permitted to
deliver such Prospectus to purchasers of the Registrable Securities in
accordance with applicable law and, if the Company shall file a post-effective
amendment to the Shelf Registration Statement, use reasonable efforts to cause
such post-effective amendment to be declared effective under the Act as
promptly as is practicable; (ii) provide such Holder, upon request, copies of
any documents filed pursuant to Section 2(e)(i) hereof; and (iii) notify such
Holder as promptly as practicable after the effectiveness under the Act of any
post-effective amendment filed pursuant to Section 2(e)(i) hereof; provided,
that if such Notice and Questionnaire is delivered during a Deferral Period,
the Company shall so inform the Holder delivering such Notice and Questionnaire
and shall take the actions set forth in

 

clauses (i), (ii) and (iii) above upon expiration of the Deferral
Period in accordance with Section 3(i) hereof. 
Notwithstanding anything contained herein to the contrary, the Company
shall be under no obligation to name any Holder that is not a Notice Holder as
a selling securityholder in the Shelf Registration Statement or related
Prospectus; provided, however, that any Holder that becomes a
Notice Holder pursuant to the provisions of this Section 2(e) (whether or not
such Holder was a Notice Holder at the effective date of the Shelf Registration
Statement) shall be named as a selling securityholder in the Shelf Registration
Statement or related Prospectus in accordance with the requirements of this
Section 2(e).  Notwithstanding the
foregoing, if (A) the Notes are called for redemption and the then prevailing
market price of the Common Shares is above the Exchange Price or (B) the Notes
are exchanged as provided for in Section 13.01(b), 13.01(c) or 13.01(d) of the
Indenture, then the Company shall use reasonable efforts to file the
post-effective amendment or supplement within five Business Days of the
redemption date or the end of the exchange period, as applicable.

3.             Registration Procedures.  The following provisions shall apply in
connection with the Shelf Registration Statement.

(a)           The Company shall:

(i)            furnish to each of the
Representatives and to counsel for the Notice Holders, not less than five
Business Days prior to the filing thereof with the Commission, a copy of the
Shelf Registration Statement and each amendment thereto and each amendment or
supplement, if any, to the Prospectus included therein (including all documents
incorporated by reference therein after the initial filing) and shall use its
reasonable efforts to reflect in each such document, when so filed with the
Commission, such comments as the Representatives reasonably propose; and

(ii)           include information regarding the
Notice Holders and the reasonable methods of distribution they have elected for
their Registrable Securities provided to the Company in Notices and
Questionnaires as necessary to permit such distribution by the methods
specified therein.

(b)           The Company shall ensure that:

(i)            the Shelf Registration Statement and
any amendment thereto and any Prospectus forming part thereof and any amendment
or supplement thereto complies in all material respects with the Act; and

(ii)           the Shelf Registration Statement and
any amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading.

(c)           The Company shall advise the
Representatives, the Notice Holders and any underwriter that has provided in
writing to the Company a telephone or facsimile number and address for notices,
and confirm such advice in writing, if requested (which notice pursuant to
clauses (ii)-(v) of this Section 3(c) shall be accompanied by an instruction to
suspend the use of the Prospectus until the Company shall have remedied the
basis for such suspension):

(i)            when the Shelf Registration
Statement and any amendment thereto has been filed with the Commission and when
the Shelf Registration Statement or any post-effective amendment thereto has
become effective;

(ii)           of any request by the Commission for
any amendment or supplement to the Shelf Registration Statement or the
Prospectus or for additional information;

 

(iii)          of the issuance by the Commission of
any stop order suspending the effectiveness of the Shelf Registration Statement
or the institution or threatening of any proceeding for that purpose;

(iv)          of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Common
Shares included therein for sale in any jurisdiction or the institution or
threatening of any proceeding for such purpose; and

(v)           of the happening of any event that
requires any change in the Shelf Registration Statement or the Prospectus so
that, as of such date, they (A) do not contain any untrue statement of a
material fact and (B) do not omit to state a material fact required to be
stated therein or necessary to make the statements therein (in the case of the
Prospectus, in the light of the circumstances under which they were made) not
misleading.

(d)           The Company shall use its reasonable
efforts to prevent the issuance of any order suspending the effectiveness of
the Shelf Registration Statement or the qualification of the securities therein
for sale in any jurisdiction and, if issued, to obtain as soon as possible the
withdrawal thereof.  The Company shall
undertake additional reasonable actions as required to permit unrestricted resales
of the Common Shares in accordance with the terms and conditions of this
Agreement.

(e)           Upon request, the Company shall
furnish to each Notice Holder, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including all
material incorporated therein by reference, and, if a Notice Holder so requests
in writing, all exhibits thereto (including exhibits incorporated by reference
therein).

(f)            During the Shelf Registration
Period, the Company shall promptly deliver to each Initial Purchaser, each
Notice Holder, and any sales or placement agents or underwriters acting on
their behalf, without charge, as many copies of the Prospectus (including the
preliminary Prospectus, if any) included in the Shelf Registration Statement
and any amendment or supplement thereto as any such person may reasonably
request.  The Company consents to the use
of the Prospectus or any amendment or supplement thereto by each of the
foregoing in connection with the offering and sale of the Common Shares.

(g)           Prior to any offering of Common
Shares pursuant to the Shelf Registration Statement, the Company shall arrange
for the qualification of the Common Shares for sale under the laws of such
jurisdictions as any Notice Holder shall reasonably request and shall maintain such
qualification in effect so long as required; provided that in no event shall
the Company be obligated to qualify to do business in any jurisdiction where it
is not then so qualified or to take any action that would subject it to service
of process in suits, other than those arising out of the Initial Placement or
any offering pursuant to the Shelf Registration Statement, in any jurisdiction
where it is not then so subject.

(h)           Upon the occurrence of any event
contemplated by subsections (c)(ii) through (v) above, the Company shall
promptly (or within the time period provided for by Section 3(i) hereof, if
applicable) prepare a post-effective amendment to the Shelf Registration
Statement or an amendment or supplement to the related Prospectus or file any
other required document so that, as thereafter delivered to Initial Purchasers
of the securities included therein, the Prospectus will not include an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

(i)            Upon the occurrence or existence of
any pending corporate development, public filings with the Commission or any
other material event that, in the reasonable judgment of the Company, makes it
appropriate to suspend the availability of the Shelf Registration Statement and
the related Prospectus,

 

the Company shall give notice (without notice of the nature or details
of such events) to the Notice Holders that the availability of the Shelf
Registration Statement is suspended and, upon actual receipt of any such
notice, each Notice Holder agrees not to sell any Registrable Securities
pursuant to the Shelf Registration Statement until such Notice Holder’s receipt
of copies of the supplemented or amended Prospectus provided for in Section
3(h) hereof, or until it is advised in writing by the Company that the
Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus.  The period during
which the availability of the Shelf Registration Statement and any Prospectus
is suspended (the “Deferral Period”)
shall not exceed 45 days in any 90-day period or 90 days in any 360-day period;
provided, that, if the event triggering the Deferral Period
relates to a proposed or pending material business transaction, the disclosure
of which the board of trustees of the Company determines in good faith would be
reasonably likely to impede the ability to consummate the transaction or would
otherwise be seriously detrimental to the Company and its subsidiaries taken a
whole, the Company may extend the Deferral Period from 45 days to 60 days in
any 90-day period or from 90 days to 120 days in any 360-day period.

(j)            The Company shall comply with all
applicable rules and regulations of the Commission and shall make generally
available to its securityholders an earnings statement satisfying the
provisions of Section 11(a) of the Act as soon as practicable after the
effective date of the Shelf Registration Statement and in any event no later
than 45 days after the end of a 12-month period (or 90 days, if such period is
a fiscal year) beginning with the first month of the Company’s first fiscal
quarter commencing after the effective date of the Shelf Registration
Statement.

(k)           The Company may require each Holder
of Common Shares to be sold pursuant to the Shelf Registration Statement to
furnish to the Company such information regarding the Holder and the
distribution of such Common Shares as the Company may from time to time
reasonably require for inclusion in the Shelf Registration Statement.  The Company may exclude from the Shelf
Registration Statement the Common Shares of any Holder that fails to furnish
such information within a reasonable time after receiving such request.

(l)            Subject to Section 6 hereof, the
Company shall enter into customary agreements (including, if requested, an
underwriting agreement in customary form) and take all other appropriate
actions in order to expedite or facilitate the registration or the disposition
of the Common Shares, and in connection therewith, if an underwriting agreement
is entered into, cause the same to contain customary indemnification provisions
and procedures.

(m)          Subject to Section 6 hereof, the
Company shall:

(i)            make reasonably available for
inspection by the Holders of Common Shares to be registered thereunder, any
underwriter participating in any disposition pursuant to the Shelf Registration
Statement, and any attorney, accountant or other agent retained by the Holders
or any such underwriter all relevant financial and other records and pertinent
corporate documents of the Company and its subsidiaries;

(ii)           cause the Company’s officers,
directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders or any such underwriter,
attorney, accountant or agent in connection with the Shelf Registration
Statement as is customary for similar due diligence examinations;

(iii)          make such representations and
warranties to the Holders of Common Shares registered thereunder and the
underwriters, if any, in form, substance and scope as are

 

customarily made by
issuers to underwriters in primary underwritten offerings and covering matters
including, but not limited to, those set forth in the Purchase Agreement;

(iv)          obtain opinions of counsel to the
Company and updates thereof (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the Managing Underwriters, if
any) addressed to each selling Holder and the underwriters, if any, covering
such matters as are customarily covered in opinions requested in underwritten
offerings and such other matters as may be reasonably requested by such Holders
and underwriters;

(v)           obtain “comfort” letters and updates
thereof from the independent certified public accountants of the Company (and,
if necessary, any other independent certified public accountants of any subsidiary
of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the Shelf
Registration Statement), addressed to each selling Holder of Common Shares
registered thereunder and the underwriters, if any, in customary form and
covering matters of the type customarily covered in “comfort” letters in
connection with primary underwritten offerings; and

(vi)          deliver such documents and
certificates as may be reasonably requested by the Majority Holders or the
Managing Underwriters, if any, including those to evidence compliance with
Section 3(i) hereof and with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Company.

The actions set forth in clauses (iii), (iv), (v) and
(vi) of this paragraph (m) shall be performed in connection with any
underwriting or similar agreement as and to the extent required thereunder.

(n)           In the event that any Broker-Dealer
shall underwrite any Common Shares or participate as a member of an
underwriting syndicate or selling group or “assist in the distribution” (within
the meaning of the NASD Rules) thereof, whether as a Holder of such Common
Shares or as an underwriter, a placement or sales agent or a broker or dealer
in respect thereof, or otherwise, the Company shall assist such Broker-Dealer
in complying with the NASD Rules.

(o)           The Company shall use its reasonable
efforts to take all other steps necessary to effect the registration of the Common
Shares covered by the Shelf Registration Statement.

4.     Registration Expenses.  The Company and the Operating Partnership
shall, jointly and severally, pay all Registration Expenses in connection with
any Shelf Registration Statement filed pursuant to Section 2(a) hereof
(including the reasonable fees and disbursements of no more than one firm of
counsel for the Holders of the Registrable Securities in connection with the
review of any Shelf Registration Statement, Prospectus or amendment or
supplement thereto in accordance with the provisions of Section 3(a) hereof,
which counsel shall be reasonably satisfactory to the Company and the Operating
Partnership). Except as provided herein, each Holder shall pay all expenses of
its counsel, underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder’s Registrable Securities
pursuant to the Shelf Registration Statement.

5.             Indemnification and
Contribution.

(a)   The Company and the Operating Partnership agree
jointly and severally to indemnify and hold harmless each Holder of Registrable
Securities (including each Initial Purchaser), its directors, officers,
employees and agents, and each person, if any, who controls any Holder within
the meaning of

 

the Securities Act or the Exchange Act (each, an “Indemnified Holder”), against any loss, claim, damage,
liability or expense, as incurred, or any action in respect thereof (including,
but not limited to, any loss, claim, damage, liability or expense relating to
resales of the Registrable Securities) (collectively, “Losses”),
to which such Indemnified Holder may become subject, insofar as any such Loss
arises out of or is based upon:

(i)            any untrue statement or alleged
untrue statement of a material fact contained in (A) the Shelf Registration
Statement as originally filed or in any amendment thereof, or (B) any blue sky
application or other document or any amendment or supplement thereto prepared
or executed by the Company (or based upon written information furnished by or
on behalf of the Company expressly for use in such blue sky application or
other document or amendment or supplement) filed in any jurisdiction
specifically for the purpose of qualifying any or all of the Registrable
Securities under the securities law of any state or other jurisdiction (such
application or document being hereinafter called a “Blue Sky Application”), or,
in each case, the omission or alleged omission to state therein any material
fact required to be stated therein or necessary to make the statements therein
not misleading; or

(ii)           any untrue statement or alleged
untrue statement of a material fact contained in any Issuer Free Writing
Prospectus, any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a
material fact, in each case, necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading,

and to reimburse each Indemnified Holder for any and all expenses
including the reasonable fees and disbursements of counsel as such expenses are
reasonably incurred by such Indemnified Holder in connection with
investigating, defending, settling, compromising or paying any such Loss;
provided, however, that the foregoing indemnity agreement shall not apply to
any Loss to the extent, but only to the extent, arising out of or based upon
any untrue statement or alleged untrue statement or omission or alleged
omission made in reliance upon and in conformity with written information
furnished to the Company by or on behalf of such Holder (or its related
Indemnified Holder) expressly for use therein. 
The indemnity agreement set forth in this Section 6(a) shall be in addition
to any liabilities that the Company may otherwise have.

The Company and the Operating Partnership jointly and severally also
agree to indemnify as provided in this Section 6(a) or contribute as provided
in Section 6(e) hereof to Losses of each underwriter, if any, of Registrable
Securities registered under a Shelf Registration Statement, their directors,
officers, employees or agents and each person who controls such underwriter on
substantially the same basis as that of the indemnification of the Initial
Purchasers and the selling Holders provided in this Section 6(a) and shall, if
requested by any Holder, enter into an underwriting agreement reflecting such
agreement.

(b)   Each Holder agrees, severally and not
jointly, to indemnify and hold harmless the Company and the Operating Partnership,
each of its trustees, each of its officers who sign the Shelf Registration
Statement and each person, if any, who controls the Company or the Operating
Partnership within the meaning of the Securities Act or the Exchange Act (i) to
the same extent as the foregoing indemnity from the Company and the Operating
Partnership to each such Holder, but only with reference to written information
relating to such Holder furnished to the Company by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing
indemnity and (ii) against any Loss, joint or several, including, but not
limited to, any Loss relating to resales of the Registrable Securities, to
which such person may become subject, insofar as any such Loss arises out of,
or is based upon any Free Writing Prospectus used by such Holder without the
prior consent of the Issuer, and in connection with any underwritten offering,
the underwriters, provided that the indemnification obligation in this clause
(ii)

 

shall be several, not joint and several, among the
Holders who used such Free Writing Prospectus. 
This indemnity agreement set forth in this Section shall be in addition
to any liabilities which any such Holder may otherwise have.

(c)   Promptly after receipt by an indemnified
party under this Section 6 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party under this Section 6, notify the indemnifying party in
writing of the commencement thereof, but the failure to notify the indemnifying
party (i) will not relieve it from liability under paragraph (a) or (b) above
unless and to the extent it did not otherwise learn of such action and such
failure results in the forfeiture by the indemnifying party of substantial
rights and defenses and (ii) will not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b) above.  In case any such action is brought against
any indemnified party and such indemnified party seeks or intends to seek
indemnity from an indemnifying party, the indemnifying party will be entitled
to participate in, and, to the extent that it shall elect, jointly with all
other indemnifying parties similarly notified, by written notice delivered to
the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel satisfactory to
such indemnified party in its reasonable discretion; provided, however, if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that a conflict may arise between the positions of the indemnifying party and
the indemnified party in conducting the defense of any such action or that
there may be legal defenses available to it and/or other indemnified parties
that are different from or additional to those available to the indemnifying
party, the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying
party to such indemnified party of such indemnifying party’s election so to
assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party under
this Section 6 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (other than local counsel), reasonably approved by the
indemnifying party, representing the indemnified parties who are parties to
such action) or (ii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party in its reasonable discretion to represent
the indemnified party within a reasonable time after notice of commencement of
the action, in each of which cases the reasonable fees and expenses of counsel
shall be at the expense of the indemnifying party.

(d)   The indemnifying party under this Section 6
shall not be liable for any settlement of any proceeding effected without its
written consent, which shall not be withheld unreasonably, but if settled with
such consent or if there is a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any Loss
by reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for reasonable fees and expenses of counsel as contemplated by Section
6(c) hereof, the indemnifying party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request and (ii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the
date of such settlement.  No indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement, compromise or consent to the entry of judgment in any pending
or threatened action, suit or proceeding in respect of which any indemnified
party is or could have been a party and indemnity was or could have been sought
hereunder by such indemnified party, unless such settlement, compromise or
consent (x) includes an unconditional release of such indemnified party from

 

all liability on claims that are the subject matter of
such action, suit or proceeding and (y) does not include a statement as to or
an admission of fault, culpability or a failure to act, by or on behalf of any
indemnified party.

(e)   If the indemnification provided for in
Section 6 is for any reason unavailable to or otherwise insufficient to hold
harmless an indemnified party in respect of any Loss referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or
payable by such indemnified party, as incurred, as a result of any Loss
referred to therein:

(i)            in such proportion as is appropriate
to reflect the relative benefits received by the Company and the Operating
Partnership, on the one hand, and the Holders, on the other hand, from the
offering and sale of the Registrable Securities, on the one hand, and a Holder
with respect to the sale by such Holder of the Registrable Securities, on the
other hand, or

(ii)           if the allocation provided by Section
(6)(e)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in Section
6(e)(i) above but also the relative fault of the Company and the Operating
Partnership, on the one hand, and the Holders, on the other hand, in connection
with the statements or omissions or alleged statements or omissions that
resulted in such Loss, as well as any other relevant equitable considerations.

The relative benefits received by the Company and the Operating
Partnership, on the one hand, and the Holders, on the other hand, in connection
with such offering and such sale of the Registrable Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total
net proceeds from the offering of the Notes purchased under the Purchase
Agreement (before deducting expenses) received by the Company and the Operating
Partnership and the total proceeds received by the Holders with respect to
their sale of Registrable Securities. 
The relative fault of the Company and the Operating Partnership, on the
one hand, and the Holders, on the other hand, shall be determined by reference
to, among other things, whether any such untrue or alleged untrue statement of
a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company and the Operating Partnership,
on the one hand, or the Holders, on the other hand, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The Company,
the Operating Partnership and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 6(e) were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in this Section 6(e).

The amount paid or payable by a party as a result of the Loss referred
to above shall be deemed to include, subject to the limitations set forth in
Section 6(c), any legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim.

Notwithstanding the provisions of this Section 6, in no event will (i)
any Holder be required to undertake liability to any person under this Section
6 for any amounts in excess of the dollar amount of the proceeds to be received
by such Holder from the sale of such Holder’s Registrable Securities (after
deducting any fees, discounts and commissions applicable thereto) pursuant to
any Shelf Registration Statement under which such Registrable Securities are to
be registered under the Securities Act and (ii) any underwriter be required to
undertake liability to any person hereunder for any amounts in excess of the
discount or commission payable to such underwriter with respect to the
Registrable Securities underwritten by it and distributed to the public.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such

 

fraudulent misrepresentation. 
The Holders’ obligations to contribute as provided in this Section 6(e)
are several and not joint.

(f)    The provisions of this Section 6 shall
remain in full force and effect, regardless of any investigation made by or on
behalf of any Holder or the Company, the Operating Partnership or any of the
officers, directors, employees, agents or controlling persons referred to in
Section 6 hereof, and will survive the sale by a Holder of Registrable
Securities.

6.             Underwritten Registrations.  (a)  In
no event will the method of distribution of Registrable Securities take the
form of an underwritten offering without the prior written consent of the
Company.

(b)           If any Common Shares covered by the
Shelf Registration Statement are to be sold in an underwritten offering, the
Managing Underwriters shall be selected by the Company, subject to the prior
written consent of the Majority Holders, which consent shall not be
unreasonably withheld.

(c)           No person may participate in any
underwritten offering pursuant to the Shelf Registration Statement unless such
person (i) agrees to sell such person’s Common Shares on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrangements; and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements.

7.             Registration Defaults.  If any of the following events shall occur,
then the Company shall pay liquidated damages (the “Registration
Default Damages”) to the Holders as follows:

(a)           if the Shelf Registration Statement
(which shall be, if the Company is then a WKSI, an Automatic Shelf Registration
Statement) is not filed with the Commission on or prior to the 90th day
following the Closing Date, then commencing on the 91st day after the Closing
Date, Registration Default Damages shall accrue on the aggregate outstanding
principal amount of the Notes, at a rate of 0.25% per annum for the first 90
days from and including such 91st day and 0.50% per annum thereafter; or

(b)           if the Shelf Registration Statement
is not declared effective by the Commission (or has not become effective in the
case of an Automatic Shelf Registration Statement) on or prior to the 180th day
following the Closing Date, then commencing on the 181st day after the Closing
Date, Registration Default Damages shall accrue on the aggregate outstanding
principal amount of the Notes, at a rate of 0.25% per annum for the first 90
days from and including such 181st day and 0.50% per annum thereafter; or

(c)           if the Shelf Registration Statement
has been declared or become effective but ceases to be effective or usable for
the offer and sale of the Registrable Securities, other than in connection with
(A) a Deferral Period or (B) as a result of a requirement to file a
post-effective amendment or supplement to the Prospectus to make changes to the
information regarding selling securityholders or the plan of distribution
provided for therein, at any time during the Shelf Registration Period and the
Company does not cure the lapse of effectiveness or usability within ten
Business Days (or, if a Deferral Period is then in effect and subject to the 20
Business Day filing requirement and the proviso regarding the filing of
post-effective amendments in Section 2(e) with respect to any Notice and
Questionnaire received during such period, within ten Business Days following
the expiration of such Deferral Period or period permitted pursuant to Section
2(e)) then Registration Default Damages shall accrue on the aggregate
outstanding principal amount of the Notes at a rate of 0.25% per annum for the
first 90 days from and including the day following such tenth Business Day and
0.50% per annum thereafter; or

 

(d)           if the Company through its omission
fails to name as a selling securityholder any Holder that had complied timely
with its obligations hereunder in a manner to entitle such Holder to be so
named in (i) the Shelf Registration Statement at the time it first became
effective or (ii) any post-effective amendment to the Shelf Registration
Statement or any Prospectus at the later of time of filing thereof or the time
the Shelf Registration Statement of which the Prospectus forms a part becomes
effective then Registration Default Damages shall accrue, on the aggregate
outstanding principal amount of the Notes held by such Holder, at a rate of
0.25% per annum for the first 90 days from and including the day following the
effective date of such Shelf Registration Statement or post-effective amendment
or the time of filing of such Prospectus, as the case may be, and 0.50% per
annum thereafter; or

(e)           if the aggregate duration of Deferral
Periods in any period exceeds the number of days permitted in respect of such
period pursuant to Section 3(i) hereof, then commencing on the day the
aggregate duration of Deferral Periods in any period exceeds the number of days
permitted in respect of such period, Registration Default Damages shall accrue
on the aggregate outstanding principal amount of the Notes at a rate of 0.25%
per annum for the first 90 days from and including such date, and 0.50% per
annum thereafter;

provided, however, that (1)
upon the filing of the Shelf Registration Statement (in the case of paragraph
(a) above), (2) upon the effectiveness of the Shelf Registration Statement (in
the case of paragraph (b) above), (3) upon such time as the Shelf Registration
Statement which had ceased to remain effective or usable for resales again
becomes effective and usable for resales (in the case of paragraph (c) above),
(4) upon the time such Holder is permitted to sell its Registrable Securities
pursuant to any Shelf Registration Statement and Prospectus in accordance with
applicable law (in the case of paragraph (d) above) (5) upon the termination of
the Deferral Period that caused the limit on the aggregate duration of Deferral
Periods in a period set forth in Section 3(i) to be exceeded (in the case of
paragraph (e) above) or (6) upon the date the Shelf Registration Statement is
no longer required to be kept effective, the Registration Default Damages shall
cease to accrue.

Any amounts of Registration Default Damages due
pursuant to this Section 7 will be payable in cash on the next succeeding
interest payment date to Holders entitled to receive such Registration Default
Damages on the relevant record dates for the payment of interest.  If any Note ceases to be outstanding during
any period for which Registration Default Damages are accruing, the Company
will prorate the Registration Default Damages payable with respect to such
Note.

The Registration Default Damages rate on the Notes
shall not exceed in the aggregate 0.50% per annum and shall not be payable
under more than one clause above for any given period of time.

Notwithstanding any provision in this Agreement, in no
event shall Registration Default Damages accrue to holders of Common Shares
issued upon exchange of Notes.  In lieu
thereof, the Company shall increase the Conversion Rate (as defined in the
Indenture) by 3% for each $1,000 principal amount of Notes exchanged at a time
when such Registration Default has occurred and is continuing.

8.             No Inconsistent Agreements.  Neither the Company nor the Operating
Partnership has entered into, and each agrees not to enter into, any agreement
with respect to its securities that is inconsistent with the registration
rights granted to the Holders herein.

9.             Rule 144A and Rule 144.  So long as any Registrable Securities remain
outstanding, the Company shall use its reasonable best efforts to file the
reports required to be filed by it under Rule 144A(d)(4) under the Act and the
Exchange Act in a timely manner and, if at any time the Company is not required
to file such reports, it will, upon the written request of any Holder of
Registrable Securities, make publicly available other information so long as
necessary to permit sales of such Holder’s

 

Registrable Securities pursuant to Rules 144 and 144A of the Act.  The Company covenants that it will take such
further action as any Holder of Registrable Securities may reasonably request,
all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Act within the limitation
of the exemptions provided by Rules 144 and 144A (including, without
limitation, the requirements of Rule 144A(d)(4)).  Upon the written request of any Holder of
Registrable Securities, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements.  Notwithstanding the foregoing, nothing in
this Section 9 shall be deemed to require the Company or the Operating
Partnership to register any of its securities pursuant to the Exchange Act.

10.           Listing.  The Company shall use its reasonable efforts
to maintain the approval of the Common Shares for listing on the New York Stock
Exchange.

11.           Amendments and Waivers.  The provisions of this Agreement may not be
amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Company has
obtained the written consent of the Majority Holders; provided that,
with respect to any matter that directly or indirectly affects the rights of
any Initial Purchaser hereunder, the Company shall obtain the written consent
of each such Initial Purchaser against which such amendment, qualification,
supplement, waiver or consent is to be effective; provided, further,
that no amendment, qualification, supplement, waiver or consent with respect to
Section 7 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder; and provided, further,
that the provisions of this Article 11 may not be amended, qualified, modified
or supplemented, and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of
the Initial Purchasers and each Holder.

12.           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail, telex, telecopier or air courier guaranteeing overnight
delivery:

(a)           if to a Holder, at the most current
address given by such holder to the Company in accordance with the provisions
of the Notice and Questionnaire;

(b)           if to the Initial Purchasers or the
Representatives, initially at the address or addresses set forth in the
Purchase Agreement; and

(c)           if to the Company or the Operating
Partnership, initially at its address set forth in the Purchase Agreement.

All such notices and communications shall be deemed to
have been duly given when received.

The Initial Purchasers, the Company or the Operating
Partnership by notice to the other parties may designate additional or
different addresses for subsequent notices or communications.

Notwithstanding the foregoing, notices given to
Holders holding Notes in book-entry form may be given through the facilities of
DTC or any successor depositary.

13.           Remedies.  Each Holder, in addition to being entitled to
exercise all rights provided to it herein or in the Purchase Agreement or
granted by law, including recovery of liquidated or other damages, will be
entitled to specific performance of its rights under this Agreement.  The Company and the Operating Partnership
agree that monetary damages would not be adequate compensation for any loss

 

incurred by reason of a breach by them of the provisions of this
Agreement and hereby agree to waive in any action for specific performance the defense
that a remedy at law would be adequate.

14.           Successors.  This Agreement shall inure to the benefit of
and be binding upon the parties hereto, their respective successors and
assigns, including, without the need for an express assignment or any consent
by the Company or the Operating Partnership thereto, subsequent Holders of
Common Shares, and the indemnified persons referred to in Section 5
hereof.  The Company and the Operating
Partnership hereby agree to extend the benefits of this Agreement to any Holder
of Common Shares, and any such Holder may specifically enforce the provisions
of this Agreement as if an original party hereto.

15.           Counterparts.  This Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same agreement.

16.           Headings.  The section headings used herein are for
convenience only and shall not affect the construction hereof.

17.           Applicable Law.  This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts
made and to be performed in the State of New York.  The parties hereto each hereby waive any
right to trial by jury in any action, proceeding or counterclaim arising out of
or relating to this Agreement.

18.           Severability.  In the event that any one of more of the
provisions contained herein, or the application thereof in any circumstances,
is held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all of the rights and privileges of
the parties shall be enforceable to the fullest extent permitted by law.

19.           Common Shares Held by the
Company, etc.  Whenever
the consent or approval of Holders of a specified percentage of principal
amount of Common Shares is required hereunder, Common Shares held by the
Company or its Affiliates (other than subsequent Holders of Common Shares if
such subsequent Holders are deemed to be Affiliates solely by reason of their
holdings of such Common Shares) shall not be counted in determining whether
such consent or approval was given by the Holders of such required percentage.

 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this letter and your acceptance shall represent a
binding agreement by and among the Company, the Operating Partnership and the
several Initial Purchasers.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  CORPORATE OFFICE
  PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Roger A. Waesche, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Roger A.
  Waesche, Jr.

  
	
   

  	
   

  	
  Title: Executive
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CORPORATE OFFICE
  PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
  By: Corporate
  Office Properties Trust, its General

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger A.
  Waesche, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Roger A.
  Waesche, Jr.

  
	
   

  	
   

  	
  Title: Executive
  Vice President

  
					

 

The foregoing Agreement is hereby confirmed and
accepted as of the date first above written.

BANC OF AMERICA SECURITIES LLC

J.P.MORGAN SECURITIES INC

Acting on behalf of itself and as Representatives of 

the several Initial Purchasers

BANC OF AMERICA
SECURITIES LLC

	
  By:

  	
   /s/ Derek Dillion

  	
   

  
	
   

  	
  Name: Derek
  Dillion

  
	
   

  	
  Title: Managing
  Director

  

 

J.P.MORGAN SECURITIES INC

	
  By:

  	
   /s/ Santosh Screenivasan

  	
   

  
	
   

  	
  Name: Santosh
  Sreenivasan

  
	
   

  	
  Title: Vice
  President

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