Document:

Exhibit 10.2

 

EXECUTION COPY

 

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of October 1, 2007

 

by and among

 

CORPORATE OFFICE PROPERTIES, L.P.,

as
Borrower

 

CORPORATE OFFICE PROPERTIES TRUST,

as
Parent,

 

KEYBANC
CAPITAL MARKETS

 

and

 

WACHOVIA
CAPITAL MARKETS, LLC

as Co-Lead Arrangers,

 

KEYBANK
NATIONAL ASSOCIATION,

as
Administrative Agent,

 

WACHOVIA
BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

 

Each
of

BANK
OF AMERICA, N.A.,

MANUFACTURERS
AND TRADERS TRUST COMPANY,

 

and

 

CITIZENS
BANK OF PENNSYLVANIA,

as a Documentation Agent,

 

and

 

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

AND THEIR ASSIGNEES PURSUANT TO SECTION 12.5.,

as
Lenders

 

 

 

TABLE OF CONTENTS

	
  Article I. Definitions

  	
  1

  
	
   

  	
   

  
	
  Section 1.1.
  Definitions

  	
  1

  
	
  Section 1.2.
  General; References to Times

  	
  24

  
	
  Section 1.3.
  Financial Attributes of Non-Wholly Owned Subsidiaries

  	
  25

  
	
   

  	
   

  
	
  Article II. Credit Facility

  	
  25

  
	
   

  	
   

  
	
  Section 2.1.
  Revolving Loans

  	
  25

  
	
  Section 2.2.
  Swingline Loans

  	
  26

  
	
  Section 2.3.
  Letters of Credit

  	
  28

  
	
  Section 2.4.
  Rates and Payment of Interest on Loans

  	
  34

  
	
  Section 2.5.
  Number of Interest Periods

  	
  35

  
	
  Section 2.6.
  Repayment of Loans

  	
  35

  
	
  Section 2.7.
  Prepayments

  	
  35

  
	
  Section 2.8.
  Continuation

  	
  36

  
	
  Section 2.9.
  Conversion

  	
  36

  
	
  Section 2.10.
  Notes

  	
  37

  
	
  Section 2.11.
  Voluntary Reductions of the Commitment

  	
  37

  
	
  Section 2.12.
  Extension of Termination Date

  	
  37

  
	
  Section 2.13.
  Expiration or Maturity Date of Letters of Credit Past Termination Date

  	
  38

  
	
  Section 2.14.
  Amount Limitations

  	
  38

  
	
  Section 2.15.
  Increase of Commitments

  	
  38

  
	
   

  	
   

  
	
  Article III. Payments, Fees and Other General
  Provisions

  	
  39

  
	
   

  	
   

  
	
  Section 3.1.
  Payments

  	
  39

  
	
  Section 3.2.
  Pro Rata Treatment

  	
  39

  
	
  Section 3.3.
  Sharing of Payments, Etc

  	
  40

  
	
  Section 3.4.
  Several Obligations

  	
  41

  
	
  Section 3.5.
  Minimum Amounts

  	
  41

  
	
  Section 3.6.
  Fees

  	
  41

  
	
  Section 3.7.
  Computations

  	
  43

  
	
  Section 3.8.
  Usury

  	
  43

  
	
  Section 3.9.
  Agreement Regarding Interest and Charges

  	
  43

  
	
  Section 3.10.
  Statements of Account

  	
  43

  
	
  Section 3.11.
  Defaulting Lenders

  	
  44

  
	
  Section 3.12.
  Taxes

  	
  45

  
	
   

  	
   

  
	
  Article IV. Yield Protection, Etc

  	
  46

  
	
   

  	
   

  
	
  Section 4.1.
  Additional Costs; Capital Adequacy

  	
  46

  
	
  Section 4.2.
  Suspension of LIBOR Loans

  	
  48

  
	
  Section 4.3.
  Illegality

  	
  48

  
	
  Section 4.4.
  Compensation

  	
  48

  
	
  Section 4.5.
  Treatment of Affected Loans

  	
  49

  
	
  Section 4.6.
  Change of Lending Office

  	
  50

  

 

i

 

 

	
  Section 4.7.
  Assumptions Concerning Funding of LIBOR Loans

  	
  50

  
	
   

  	
   

  
	
  Article V. Conditions Precedent

  	
  50

  
	
   

  	
   

  
	
  Section 5.1.
  Initial Conditions Precedent

  	
  50

  
	
  Section 5.2.
  Conditions Precedent to All Loans and Letters of Credit

  	
  52

  
	
  Section 5.3.
  Conditions as Covenants

  	
  53

  
	
   

  	
   

  
	
  Article VI. Representations and Warranties

  	
  53

  
	
   

  	
   

  
	
  Section 6.1.
  Representations and Warranties

  	
  53

  
	
  Section 6.2.
  Survival of Representations and Warranties, Etc

  	
  59

  
	
   

  	
   

  
	
  Article VII. Affirmative Covenants

  	
  60

  
	
   

  	
   

  
	
  Section 7.1.
  Preservation of Existence and Similar Matters

  	
  60

  
	
  Section 7.2.
  Compliance with Applicable Law and Material Contracts

  	
  60

  
	
  Section 7.3.
  Maintenance of Property

  	
  60

  
	
  Section 7.4.
  Conduct of Business

  	
  60

  
	
  Section 7.5.
  Insurance

  	
  61

  
	
  Section 7.6.
  Payment of Taxes and Claims

  	
  61

  
	
  Section 7.7.
  Visits and Inspections

  	
  61

  
	
  Section 7.8.
  Use of Proceeds; Letters of Credit

  	
  61

  
	
  Section 7.9.
  Environmental Matters

  	
  62

  
	
  Section 7.10.
  Books and Records

  	
  62

  
	
  Section 7.11.
  Further Assurances

  	
  62

  
	
  Section 7.12.
  Guarantors

  	
  62

  
	
  Section 7.13.
  REIT Status

  	
  63

  
	
  Section 7.14.
  Exchange Listing

  	
  63

  
	
   

  	
   

  
	
  Article VIII. Information

  	
  63

  
	
   

  	
   

  
	
  Section 8.1.
  Quarterly Financial Statements

  	
  63

  
	
  Section 8.2.
  Year-End Statements

  	
  64

  
	
  Section 8.3.
  Compliance Certificate

  	
  64

  
	
  Section 8.4.
  Other Information

  	
  64

  
	
   

  	
   

  
	
  Article IX. Negative Covenants

  	
  66

  
	
   

  	
   

  
	
  Section 9.1.
  Financial Covenants

  	
  67

  
	
  Section 9.2.
  Restricted Payments

  	
  67

  
	
  Section 9.3.
  Indebtedness

  	
  67

  
	
  Section 9.4.
  Liens; Negative Pledges; Other Matters

  	
  68

  
	
  Section 9.5.
  Merger, Consolidation, Sales of Assets and Other Arrangements

  	
  68

  
	
  Section 9.6.
  Fiscal Year

  	
  69

  
	
  Section 9.7.
  Modifications to Material Contracts

  	
  69

  
	
  Section 9.8.
  Modifications of Organizational Documents

  	
  69

  
	
  Section 9.9.
  Transactions with Affiliates

  	
  70

  
	
  Section 9.10.
  ERISA Exemptions

  	
  70

  
	
  Section 9.11.
  Foreign Assets Control

  	
  70

  

 

ii

 

	
  Article X. Default

  	
  70

  
	
   

  	
   

  
	
  Section 10.1.
  Events of Default

  	
  70

  
	
  Section 10.2.
  Remedies Upon Event of Default

  	
  74

  
	
  Section 10.3.
  Remedies Upon Default

  	
  75

  
	
  Section 10.4.
  Allocation of Proceeds

  	
  75

  
	
  Section 10.5.
  Collateral Account

  	
  76

  
	
  Section 10.6.
  Performance by Agent

  	
  76

  
	
  Section 10.7.
  Rights Cumulative

  	
  77

  
	
   

  	
   

  
	
  Article XI. The Agent

  	
  77

  
	
   

  	
   

  
	
  Section 11.1.
  Authorization and Action

  	
  77

  
	
  Section 11.2.
  Agent’s Reliance, Etc

  	
  78

  
	
  Section 11.3.
  Notice of Defaults

  	
  78

  
	
  Section 11.4.
  KeyBank as Lender

  	
  79

  
	
  Section 11.5. Approvals
  of Lenders

  	
  79

  
	
  Section 11.6.
  Lender Credit Decision, Etc

  	
  79

  
	
  Section 11.7.
  Indemnification of Agent

  	
  80

  
	
  Section 11.8.
  Successor Agent

  	
  81

  
	
  Section 11.9.
  Titled Agents

  	
  82

  
	
   

  	
   

  
	
  Article XII. Miscellaneous

  	
  82

  
	
   

  	
   

  
	
  Section 12.1.
  Notices

  	
  82

  
	
  Section 12.2.
  Expenses

  	
  83

  
	
  Section 12.3.
  Setoff

  	
  84

  
	
  Section 12.4.
  Litigation; Jurisdiction; Other Matters; Waivers

  	
  84

  
	
  Section 12.5.
  Successors and Assigns

  	
  85

  
	
  Section 12.6.
  Amendments

  	
  88

  
	
  Section 12.7.
  Nonliability of Agent and Lenders

  	
  90

  
	
  Section 12.8.
  Confidentiality

  	
  90

  
	
  Section 12.9.
  Indemnification

  	
  91

  
	
  Section 12.10.
  Termination; Survival

  	
  93

  
	
  Section 12.11.
  Severability of Provisions

  	
  93

  
	
  Section 12.12.
  GOVERNING LAW

  	
  94

  
	
  Section 12.13.
  Counterparts

  	
  94

  
	
  Section 12.14.
  Obligations with Respect to Loan Parties

  	
  94

  
	
  Section 12.15.
  Limitation of Liability

  	
  94

  
	
  Section 12.16.
  Entire Agreement

  	
  94

  
	
  Section 12.17.
  Construction

  	
  94

  
	
  Section 12.18.
  Patriot Act

  	
  95

  
	
  Section 12.19.
  No Novation

  	
  95

  

 

	
  SCHEDULE I

  	
  Commitments

  
	
  SCHEDULE 1.1(A)

  	
  List of Loan Parties

  
	
  SCHEDULE 6.1.(b)

  	
  Ownership Structure

  

 

iii

 

	
  SCHEDULE 6.1.(f)

  	
  Title to Properties; Liens

  
	
  SCHEDULE 6.1.(g)

  	
  Indebtedness and Guaranties

  
	
  SCHEDULE 6.1.(h)

  	
  Material Contracts

  
	
  SCHEDULE 6.1.(i)

  	
  Litigation

  
	
  SCHEDULE 6.1.(y)

  	
  Unencumbered Assets

  

 

	
  EXHIBIT A

  	
  Form of Assignment and Acceptance Agreement

  
	
  EXHIBIT B

  	
  Form of Notice of Borrowing

  
	
  EXHIBIT C

  	
  Form of Notice of Continuation

  
	
  EXHIBIT D

  	
  Form of Notice of Conversion

  
	
  EXHIBIT E

  	
  Form of Notice of Swingline Borrowing

  
	
  EXHIBIT F

  	
  Form of Swingline Note

  
	
  EXHIBIT G

  	
  Form of Revolving Note

  
	
  EXHIBIT H

  	
  Form of Opinion of Counsel

  
	
  EXHIBIT I

  	
  Form of Compliance Certificate

  
	
  EXHIBIT J

  	
  Form of Guaranty

  
	
  EXHIBIT K

  	
  Patriot Act and OFAC Form

  

 

iv

 

THIS SECOND AMENDED AND
RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of October 1, 2007 by and
among CORPORATE OFFICE PROPERTIES, L.P., a limited partnership formed under the
laws of the State of Delaware (the “Borrower”), CORPORATE OFFICE PROPERTIES
TRUST, a real estate investment trust formed under the laws of the State of
Maryland (the “Parent”), each of the financial institutions initially a
signatory hereto together with their assignees pursuant to Section 12.5.,
each of KEYBANC CAPITAL MARKETS and WACHOVIA CAPITAL MARKETS, LLC, as a Co-Lead
Arranger (each a “Co-Lead Arranger”), KEYBANK NATIONAL ASSOCIATION, as Agent,
WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication Agent (the “Syndication
Agent”), and each of BANK OF AMERICA, N.A., MANUFACTURERS AND TRADERS TRUST
COMPANY, and CITIZENS BANK OF PENNSYLVANIA, as a Documentation Agent (each a “Documentation
Agent”).

 

WHEREAS, certain of the
Lenders and other financial institutions have made available to the Borrower a
$500,000,000 revolving credit facility on the terms and conditions contained in
that certain Amended and Restated Credit Agreement dated as of June 24, 2005
(as amended and in effect immediately prior to the date hereof, the “Existing
Credit Agreement”) by and among the Borrower, such Lenders, certain other
financial institutions, Wachovia Bank, National Association, as Agent and the
other parties thereto; and

 

WHEREAS, the Agent and
the Lenders desire to amend and restate the terms of the Existing Credit
Agreement to make available to the Borrower a revolving credit facility in the
initial amount of $600,000,000, which will include a $50,000,000 letter of
credit subfacility and a $50,000,000 swingline subfacility, all on the terms
and conditions contained herein.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, the parties hereto agree that the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

ARTICLE I. 
DEFINITIONS

Section 1.1.  Definitions.

 

In addition to terms
defined elsewhere herein, the following terms shall have the following meanings
for the purposes of this Agreement:

 

“Accession
Agreement” means an Accession Agreement substantially in the form of
Annex I to the Guaranty.

 

“Additional
Costs” has the meaning given that term in Section 4.1.

 

“Adjusted EBITDA” means, for any given period, (a) EBITDA for
such period minus (b) Capital Reserves for such period.

 

“Adjusted LIBOR”
means, with respect to each Interest Period for any LIBOR Loan, the rate
obtained by dividing (a) LIBOR for such Interest Period by (b) a
percentage equal to 1 minus the stated maximum rate (stated as a decimal) of
all reserves, if any, required to be

 

1

 

maintained with
respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”) as specified in Regulation D of the Board of Governors of
the Federal Reserve System (or against any other category of liabilities which
includes deposits by reference to which the interest rate on LIBOR Loans is
determined or any applicable category of extensions of credit or other assets
which includes loans by an office of any Lender outside of the United States of
America to residents of the United States of America). Any change in such
maximum rate shall result in a change in Adjusted LIBOR on the date on which
such change in such maximum rate becomes effective.

 

“Adjusted Net
Operating Income” means, with respect to a Property for any given
period, Net Operating Income of such Property for such period minus Capital
Reserves for such period.

 

“Administrative
Questionnaire” means an Administrative Questionnaire in a form
supplied by the Agent to the Lenders from time to time.

 

“Affiliate”
means any Person (other than the Agent or any Lender): (a) directly or
indirectly controlling, controlled by, or under common control with, the
Parent; (b) directly or indirectly owning or holding five percent (5.0%)
or more of any Equity Interest in the Parent; or (c) five percent (5.0%)
or more of whose voting stock or other Equity Interest is directly or
indirectly owned or held by the Parent. 
For purposes of this definition, “control” (including with correlative
meanings, the terms “controlling”, “controlled by” and “under common control
with”) means the possession directly or indirectly of the power to direct or
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities or by contract or otherwise.  The Affiliates of a Person shall include any
officer or director of such Person.  In
no event shall the Agent or any Lender be deemed to be an Affiliate of the
Borrower or the Parent.

 

“Agent”
means KeyBank National Association, as contractual representative for the
Lenders under the terms of this Agreement, and any of its successors.

 

“Agreement
Date” means the date as of which this Agreement is dated.

 

“Applicable
Law” means all applicable provisions of constitutions, statutes,
rules, regulations and orders of all governmental bodies and all orders and
decrees of all courts, tribunals and arbitrators.

 

“Applicable
Margin” means:

 

(a)                                  at
any time prior to the Investment Grade Rating Date, the percentage set forth
below corresponding to the ratio of Total Indebtedness to Total Asset Value as
determined in accordance with Section 9.1 in effect at such time:

 

2

 

	
  Level

  	
   

  	
  Total Indebtedness to

   Total Asset Value

  	
   

  	
  Applicable Margin for

   LIBOR Loans

  	
   

  	
  Applicable Margin for 

  Base Rate Loans

  	
   

  
	
  1

  	
   

  	
  Less than 0.40 to 1.00

  	
   

  	
  0.75

  	
  %

  	
  0.00

  	
  %

  
	
  2

  	
   

  	
  Greater than or
  equal to 0.40 to 1.00 

  and less than 0.45 to 1.00

  	
   

  	
  0.80

  	
  %

  	
  0.00

  	
  %

  
	
  3

  	
   

  	
  Greater than or
  equal to 0.45 to 1.00 

  and less than 0.50 to 1.00

  	
   

  	
  0.85

  	
  %

  	
  0.00

  	
  %

  
	
  4

  	
   

  	
  Greater than or
  equal to 0.50 to 1.00 

  and less than 0.55 to 1.00

  	
   

  	
  0.95

  	
  %

  	
  0.00

  	
  %

  
	
  5

  	
   

  	
  Greater than or
  equal to 0.55 to 1.00 

  and less than 0.60%

  	
   

  	
  1.10

  	
  %

  	
  0.00

  	
  %

  
	
  6

  	
   

  	
  Greater than or
  equal to 0.60 to 1.00 

  and less than 0.65%

  	
   

  	
  1.25

  	
  %

  	
  0.10

  	
  %

  

 

 

The Applicable Margin shall
be determined by the Agent from time to time, based on the ratio of Total
Indebtedness to Total Asset Value as set forth in the Compliance Certificate
most recently delivered by the Borrower pursuant to Section 8.3.  Any adjustment to the Applicable Margin shall
be effective (a) in the case of a Compliance Certificate delivered in
connection with quarterly financial statements of the Parent delivered pursuant
to Section 8.1., as of the date 55 days following the end of the last day
of the applicable fiscal quarter covered by such Compliance Certificate,
(b) in the case of a Compliance Certificate delivered in connection with
annual financial statements of the Parent delivered pursuant to
Section 8.2., as of the date 100 days following the end of the last day of
the applicable fiscal year covered by such Compliance Certificate, and
(c) in the case of any other Compliance Certificate, as of the date 5
Business Days following the Agent’s request for such Compliance
Certificate.  If the Borrower fails to
deliver a Compliance Certificate pursuant to Section 8.3., the Applicable
Margin shall equal the percentages corresponding to Level 6 until the date of
the delivery of the required Compliance Certificate.  Notwithstanding the foregoing, for the period
from the Effective Date through but excluding the date on which the Agent first
determines the Applicable Margin as set forth above, the Applicable Margin
shall equal the percentages corresponding to Level 3.  The provisions of this definition are subject
to Section 2.4.(c); and

 

(b)           on and at all times after the
Investment Grade Rating Date, the percentage per annum determined, at any time,
based on the range into which the Parent’s Credit Rating then falls, in
accordance with the levels in the table set forth below (each a “Level”).  Any change in the Parent’s Credit Rating
which would cause it to move to a different Level in such table shall effect a
change in the Applicable Margin on the Business Day on which such change
occurs.  During any period for which the Parent
has received a Credit Rating from only one Rating Agency, then the Applicable
Margin shall be determined based on such Credit Rating.  During any period that the Parent has
received only two Credit Ratings and such ratings are not equivalent, the Applicable
Margin shall be determined by the higher of such two Credit Ratings.  During any period after the Investment Grade
Rating Date for which the Parent does not have a Credit Rating from either
Credit Agency, or during any other period after the Investment Grade Rating
Date not otherwise covered in this clause (b), the Applicable Margin shall
be determined based on Level 5.

 

3

 

	
  Level

  	
   

  	
  Parent’s Credit Rating

   (S&P/Moody’s or equivalent)

  	
   

  	
  Applicable Margin for

   LIBOR Loans

  	
   

  	
  Applicable Margin for 

  Base Rate Loans

  	
   

  
	
  1

  	
   

  	
  A-or A3

  	
   

  	
  0.35

  	
  %

  	
  0.0

  	
  %

  
	
  2

  	
   

  	
  BBB+/Baa1

  	
   

  	
  0.40

  	
  %

  	
  0.0

  	
  %

  
	
  3

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.50

  	
  %

  	
  0.0

  	
  %

  
	
  4

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.675

  	
  %

  	
  0.0

  	
  %

  
	
  5

  	
   

  	
  Lower than BBB-/Baa3

  	
   

  	
  1.00

  	
  %

  	
  0.10

  	
  %

  

 

 

“Assignment
and Acceptance Agreement” means an Assignment and Acceptance
Agreement among a Lender, an Eligible Assignee and the Agent, substantially in
the form of Exhibit A.

 

“Base Rate”
means the per annum rate of interest equal to the greater of (a) the Prime
Rate or (b) the Federal Funds Rate plus one-half of one percent
(0.5%).  Any change in the Base Rate
resulting from a change in the Prime Rate or the Federal Funds Rate shall
become effective as of 12:01 a.m. on the Business Day on which each such change
occurs.  The Base Rate is a reference
rate used by the Lender acting as the Agent in determining interest rates on
certain loans and is not intended to be the lowest rate of interest charged by
the Lender acting as the Agent or any other Lender on any extension of credit
to any debtor.

 

“Base Rate
Loan” means a Revolving Loan bearing interest at a rate based on the
Base Rate.

 

“Benefit
Arrangement” means at any time an employee benefit plan within the
meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan
and which is maintained or otherwise contributed to by any member of the ERISA
Group.

 

“Borrower”
has the meaning set forth in the introductory paragraph hereof and shall
include the Borrower’s successors and permitted assigns.

 

“Business Day”
means (a) any day other than a Saturday, Sunday or other day on which
banks in Cleveland, Ohio are authorized or required to close and (b) with
reference to a LIBOR Loan, any such day that is also a day on which dealings in
Dollar deposits are carried out in the London interbank market.

 

“Capital
Reserves” means, for any period an amount with respect to any
developed Property, an amount equal to (a) $0.25 per square foot multiplied
by (b) a fraction, the numerator of which is the number of days in such
period and the denominator of which is 365. 
If the term Capital Reserves is used without reference to a specific
Property, then the amount shall be determined on an aggregate basis with
respect to all developed Property of the Parent and its Subsidiaries and a
proportionate share of all developed Property of all Unconsolidated
Affiliates.  For purposes of this
definition, once improvements related to the development of a Property have
been completed for one year or such Property has achieved an Occupancy Rate of
85%, it shall be considered a developed Property.

 

“Capitalization
Rate” means 7.00%.

 

“Capitalized Lease
Obligation” means an obligation under a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP.  The amount of a

 

4

 

Capitalized Lease
Obligation is the capitalized amount of such obligation as would be required to
be reflected on a balance sheet prepared in accordance with GAAP as of the
applicable date.

 

“Cash
Equivalents” means:  (a) securities
issued, guaranteed or insured by the United States of America or any of its
agencies with maturities of not more than one year from the date acquired;
(b) certificates of deposit with maturities of not more than one year from
the date acquired, issued by a United States federal or state chartered
commercial bank of recognized standing, or a commercial bank organized under
the laws of any other country which is a member of the Organization for
Economic Cooperation and Development, or a political subdivision of any such
country, acting through a branch or agency, which bank has capital and
unimpaired surplus in excess of $500,000,000 and which bank or its holding
company has a short-term commercial paper rating of at least A-2 or
the equivalent by S&P or at least P-2 or the equivalent by Moody’s;
(c) reverse repurchase agreements with terms of not more than seven days
from the date acquired, for securities of the type described in clause (a)
above and entered into only with commercial banks having the qualifications
described in clause (b) above; (d) commercial paper issued by any
Person incorporated under the laws of the United States of America or any State
thereof and rated at least A-2 or the equivalent thereof by S&P or at
least P-2 or the equivalent thereof by Moody’s, in each case with
maturities of not more than one year from the date acquired; and
(e) investments in money market funds registered under the Investment
Company Act of 1940, which have net assets of at least $500,000,000 and at least
85% of whose assets consist of securities and other obligations of the type
described in clauses (a) through (d) above.

 

“Co-Lead  Arranger” means each of KeyBanc Capital Markets and Wachovia
Capital Markets, LLC, together with its successors and permitted assigns.

 

“Collateral
Account” means a special deposit account or securities account
maintained by, or on behalf of, the Agent and under its sole dominion and
control.

 

“Commitment”
means, as to each Lender (other than the Swingline Lender), such Lender’s
obligation (a) to make Revolving Loans pursuant to Section 2.1., (b) to
issue (in the case of the Agent) or participate in (in the case of the Lenders)
Letters of Credit pursuant to Section 2.3.(a) and 2.3.(i), respectively
(but in the case of the Lender acting as the Agent excluding the aggregate
amount of participations in the Letters of Credit held by other Lenders) and
(c) to participate in Swingline Loans pursuant to Section 2.2.(e), in each
case, in an amount up to, but not exceeding, the amount set forth for such
Lender on Schedule I as such Lender’s “Commitment Amount” or as set forth in
the applicable Assignment and Acceptance Agreement, as the same may be reduced
from time to time pursuant to Section 2.11. or as may be increased from
time to time pursuant to Section 2.15 or as appropriate to reflect any
assignments to or by such Lender effected in accordance with Section 12.5.

 

“Commitment
Percentage” means, as to each Lender, the ratio, expressed as a
percentage, of (a) the amount of such Lender’s Commitment to (b) the
aggregate amount of the Commitments of all Lenders; provided, however, that if
at the time of determination the Commitments have terminated or been reduced to
zero, the “Commitment Percentage” of each

 

5

 

Lender shall be the
Commitment Percentage of such Lender in effect immediately prior to such
termination or reduction.

 

“Compliance
Certificate” has the meaning given that term in Section 8.3.

 

“Construction-in-Process”
means cash expenditures for land and improvements (including indirect costs
internally allocated and development costs) determined in accordance with GAAP
for all Properties that are under development or will commence development
within twelve months from any date of determination.

 

“Continue”,
“Continuation” and “Continued”
each refers to the continuation of a LIBOR Loan from one Interest Period to
another Interest Period pursuant to Section 2.8.

 

“Controlled
Property” means an Eligible Unencumbered Property that is not a
Wholly-Owned Property and where the Parent or the Borrower directly or
indirectly owns at least 80% of the Equity Interests of the Subsidiary or
Unconsolidated Affiliate that owns or leases such Property.

 

“Convert”,
“Conversion” and “Converted”
each refers to the conversion of a Revolving Loan of one Type into a Loan of
another Type pursuant to Section 2.9.

 

“Credit Event”
means any of the following: (a) the making (or deemed making) of any Loan,
(b) the Conversion of a Loan and (c) the issuance of a Letter of
Credit.

 

“Credit
Rating” means the rating assigned by a Rating Agency to the senior
unsecured long term Indebtedness of a Person.

 

“Debt Service”
means, for any period, the sum of (a) Interest Expense for such period,
and (b) all regularly scheduled principal payments made with respect to
Indebtedness of the Parent and its Subsidiaries during such period, other than
any balloon, bullet, early repayment or similar principal payment which, in
each case, repays such Indebtedness in full. 
Debt Service shall include a proportionate share of items (a) and (b) of
all Unconsolidated Affiliates.

 

“Default”
means any of the events specified in Section 10.1., whether or not there
has been satisfied any requirement for the giving of notice, the lapse of time,
or both.

 

“Defaulting
Lender” has the meaning set forth in Section 3.11.

 

“Derivatives
Contract” means any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing),

 

6

 

whether or not any such
transaction is governed by or subject to any master agreement.  Not in limitation of the foregoing, the term “Derivatives
Contract” includes any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement, including any such obligations or
liabilities under any such master agreement.

 

“Derivatives
Termination Value” means, in respect of any one or more Derivatives
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Derivatives Contracts, (a) for any date
on or after the date such Derivatives Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a)
the amount(s) determined as the mark-to-market value(s) for such Derivatives
Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Derivatives
Contracts (which may include the Agent or any Lender).

 

“Development
Property”  means a
Property which is under development or which (as determined in good faith by
the Borrower) will commence development within twelve months of the date of
determination.  A Development Property
shall cease to constitute a Development Property (a) on the one year
anniversary date of project completion or (b) on the first day of the
first full fiscal quarter after the project achieves an Occupancy Rate of 85%.

 

“Dollars”
or “$” means the lawful currency of the
United States of America.

 

“EBITDA”
means, with respect to a Person for any period: 
(a) net income (or loss) of such Person for such period determined
on a consolidated basis (excluding any income or losses from minority interests
in the case of the Parent), in accordance with GAAP, exclusive of the
following (but only to the extent included in determination of such net income
(loss)): (i) depreciation and amortization expense; (ii) Interest
Expense; (iii) income tax expense; (iv) extraordinary or
non-recurring gains and losses; plus (b) such Person’s pro rata share
of EBITDA of its Unconsolidated Affiliates. 
EBITDA shall be adjusted to remove any impact from straight line rent
leveling adjustments required under GAAP and amortization of deferred market
rent into income pursuant to Statement of Financial Accounting Standards number
141.  Notwithstanding the foregoing,
gains and losses from land sales associated with Development Properties shall
be included in EBITDA.

 

“Effective
Date” means the later of: 
(a) the Agreement Date; and (b) the date on which all of the
conditions precedent set forth in Section 5.1. shall have been fulfilled
or waived in writing by the Requisite Lenders.

 

“Eligible
Assignee” means any Person who is, at the time of determination:
(i)  a Lender or an affiliate of a Lender; (ii) a commercial bank,
trust, trust company, insurance company, investment bank or pension fund
organized under the laws of the United States of America, or any state thereof,
and having total assets in excess of $5,000,000,000; (iii) a savings and
loan association or savings bank organized under the laws of the United States
of America, or any

 

7

 

state thereof, and having
a tangible net worth of at least $500,000,000; or (iv) a commercial bank
organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development, or a political
subdivision of any such country, and having total assets in excess of
$10,000,000,000, provided that such bank is acting through a branch or agency
located in the United States of America. 
If such Person is not currently a Lender or an affiliate of a Lender,
such Person’s (or its parent’s) senior unsecured long term indebtedness must be
rated BBB or higher by S&P, Baa2 or higher by Moody’s, or the equivalent or
higher of either such rating by another rating agency reasonably acceptable to
the Agent.

 

“Eligible  Ground Lease”  means a ground lease containing the following terms and
conditions: (a) a remaining term (exclusive of any unexercised extension
options) of thirty (30) years or more from the Agreement Date;
(b) the right of the lessee to mortgage and encumber its interest in the
leased property without the consent of the lessor; (c) the obligation of
the lessor to give the holder of any mortgage Lien on such leased property
written notice of any defaults on the part of the lessee and agreement of such
lessor that such lease will not be terminated until such holder has had a
reasonable opportunity to cure or complete foreclosures, and fails to do so;
(d) reasonable transferability of the lessee’s interest under such lease,
including ability to sublease; and (e) such other rights customarily
required by mortgagees making a loan secured by the interest of the holder of
the leasehold estate demised pursuant to a ground lease.

 

“Eligible
Unencumbered Property” means a Property which satisfies all of the
following requirements:  (a) such
Property is located in the United States of America; (b) neither such
Property, nor any interest of the Parent, the Borrower or any Subsidiary
thereof therein, is subject to any Lien (other than Permitted Liens described
in clauses (a) through (f) of the definition thereof) or any Negative Pledge;
(c) if such Property is owned by a Subsidiary or an Unconsolidated
Affiliate, none of the Borrower’s or the Parent’s direct or indirect ownership
interest in such Subsidiary or Unconsolidated Affiliate is subject to any Lien
(other than Permitted Liens described in clauses (a) through (f) of the
definition thereof) or any Negative Pledge; (d) if such Property is owned
by a Subsidiary, the Parent or the Borrower directly, or indirectly through a
Subsidiary, has the right to take the following actions without the need to
obtain the consent of any Person: 
(A) to create Liens on such Property as security for Indebtedness
of the Parent, the Borrower or such Subsidiary, as applicable and (B) to
sell, transfer or otherwise dispose of such Property; (e) such Property is
owned in fee simple, or leased under an Eligible Ground Lease, by the Parent,
the Borrower, a Subsidiary or an Unconsolidated Affiliate and (f) such
Property is free of all structural defects or major architectural deficiencies,
title defects, environmental conditions or other adverse matters except for
defects, deficiencies, conditions or other matters individually or collectively
which are not material to the profitable operation of such Property.

 

“Environmental
Laws” means any Applicable Law relating to environmental protection
or the manufacture, storage, remediation, disposal or clean-up of
Hazardous Materials including, without limitation, the following: Clean Air
Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act, 33 U.S.C. §
1251 et seq.; Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.;
National

 

8

 

Environmental Policy Act,
42 U.S.C. § 4321 et seq.; regulations of the Environmental Protection Agency
and any applicable rule of common law and any judicial interpretation thereof
relating primarily to the environment or Hazardous Materials.

 

“Equity
Interest” means, with respect to any Person, any share of capital
stock of (or other ownership or profit interests in) such Person, any warrant,
option or other right for the purchase or other acquisition from such Person of
any share of capital stock of (or other ownership or profit interests in) such
Person, any security convertible into or exchangeable for any share of capital
stock of (or other ownership or profit interests in) such Person or warrant,
right or option for the purchase or other acquisition from such Person of such
shares (or such other interests), and any other ownership or profit interest in
such Person (including, without limitation, partnership, member or trust
interests therein), whether voting or nonvoting, and whether or not such share,
warrant, option, right or other interest is authorized or otherwise existing on
any date of determination.

 

“Equity
Issuance” means any issuance or sale by a Person of any Equity
Interest and shall in any event include the issuance of any Equity Interest
upon the conversion or exchange of any security constituting Indebtedness that
is convertible or exchangeable, or is being converted or exchanged, for Equity
Interests.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as in effect from
time to time.

 

“ERISA Group”
means the Parent, the Borrower, any Subsidiary and all members of a controlled
group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower or any
Subsidiary, are treated as a single employer under Section 414 of the
Internal Revenue Code.

 

“Event of
Default” means any of the events specified in Section 10.1., provided
that any requirement for notice or lapse of time or any other condition has
been satisfied.

 

“Excluded
Subsidiary” means any Subsidiary which holds title to assets which
are or are to become collateral for any Secured Indebtedness of such Subsidiary.

 

“Existing Credit Agreement” has the meaning
given that term in the first WHEREAS clause of this Agreement.

 

“Facility Fee”
means the per annum percentage set forth in the table below corresponding to
the Level at which the “Applicable Margin” is determined in accordance with the
definition thereof on and at all times after the Investment Rating Date:

 

	
  Level

  	
   

  	
  Borrower’s Credit Rating

   (S&P/Moody’s)

  	
   

  	
  Facility Fee

  	
   

  
	
  1

  	
   

  	
  A-/A3

  	
   

  	
  0.10

  	
  %

  
	
  2

  	
   

  	
  BBB+/Baa1

  	
   

  	
  0.15

  	
  %

  
	
  3

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.15

  	
  %

  
	
  4

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.20

  	
  %

  
	
  5

  	
   

  	
  Lower than BBB-/Baa3

  	
   

  	
  0.25

  	
  %

  

 

 

9

 

“Fair Market
Value” means, with respect to (a) a security listed on a
national securities exchange or the NASDAQ National Market, the price of such
security as reported on such exchange by any widely recognized reporting method
customarily relied upon by financial institutions and (b) with respect to
any other property, the price which could be negotiated in an arm’s-length free
market transaction, for cash, between a willing seller and a willing buyer,
neither of which is under pressure or compulsion to complete the transaction.

 

“Federal
Funds Rate” means, for any day, the rate per annum (rounded upward
to the nearest 1/100th of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day, provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day, and
(b) if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate quoted to the Agent
by federal funds dealers selected by the Agent on such day on such transaction
as determined by the Agent.

 

“Fees”
means the fees and commissions provided for or referred to in Section 3.6.
and any other fees payable by the Borrower hereunder or under any other Loan
Document.

 

“Fixed
Charges” means, for any period, the sum of (a) Debt Service and
(b) all Preferred Dividends paid during such period.  Fixed Charges shall include a proportionate
share of items (a) and (b) with respect to all Unconsolidated Affiliates.

 

“Funds From
Operations” means, for a given period, income of the Parent and its
Subsidiaries available for common shareholders before depreciation and
amortization of real estate assets and before extraordinary items less gains
and losses on sale of real estate determined on a consolidated basis in
accordance with GAAP applied on a consistent basis for such period.  Adjustments for Unconsolidated Affiliates
will be calculated to reflect the Borrower’s pro rata share of funds from
operations on the same basis.

 

“GAAP”
means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the accounting profession, which
are applicable to the circumstances as of the date of determination.

 

“Governmental
Approvals” means all authorizations, consents, approvals, licenses
and exemptions of, registrations and filings with, and reports to, all
Governmental Authorities.

 

“Governmental
Authority” means any national, state or local government (whether
domestic or foreign), any political subdivision thereof or any other
governmental, quasi-governmental, judicial, public or statutory
instrumentality, authority, body, agency, bureau,

 

10

 

commission, board,
department or other entity (including, without limitation, the Federal Deposit
Insurance Corporation, the Comptroller of the Currency or the Federal Reserve
Board, any central bank or any comparable authority) or any arbitrator with
authority to bind a party at law.

 

“Guarantor”
means any Person that is a party to the Guaranty as a “Guarantor” and in any
event shall include the Parent and each Material Subsidiary.

 

“Guaranty”,
“Guaranteed”, “Guarantying” or to “Guarantee”
as applied to any obligation means and includes:  (a) a guaranty (other than by
endorsement of negotiable instruments for collection or deposit in the ordinary
course of business), directly or indirectly, in any manner, of any part or all
of such obligation, or (b) an agreement, direct or indirect, contingent or
otherwise, and whether or not constituting a guaranty, the practical effect of
which is to assure the payment or performance (or payment of damages in the
event of nonperformance) of any part or all of such obligation whether by:
(i) the purchase of securities or obligations, (ii) the purchase,
sale or lease (as lessee or lessor) of property or the purchase or sale of
services primarily for the purpose of enabling the obligor with respect to such
obligation to make any payment or performance (or payment of damages in the
event of nonperformance) of or on account of any part or all of such
obligation, or to assure the owner of such obligation against loss,
(iii) the supplying of funds to or in any other manner investing in the
obligor with respect to such obligation, (iv) repayment of amounts drawn
down by beneficiaries of letters of credit (including Letters of Credit), or
(v) the supplying of funds to or investing in a Person on account of all
or any part of such Person’s obligation under a Guaranty of any obligation or
indemnifying or holding harmless, in any way, such Person against any part or
all of such obligation.  As the context
requires, “Guaranty” shall also mean the Amended and Restated Guaranty to which
the Guarantors are parties substantially in the form of Exhibit J.

 

“Hazardous
Materials” means all or any of the following: (a) substances
that are defined or listed in, or otherwise classified pursuant to, any
applicable Environmental Laws as “hazardous substances”, “hazardous materials”,
“hazardous wastes”, “toxic substances” or any other formulation intended to
define, list or classify substances by reason of deleterious properties such as
ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP”
toxicity or “EP toxicity”; (b) oil, petroleum or petroleum derived
substances, natural gas, natural gas liquids or synthetic gas and drilling
fluids, produced waters and other wastes associated with the exploration,
development or production of crude oil, natural gas or geothermal resources;
(c) any flammable substances or explosives or any radioactive materials;
(d) asbestos in any form; (e) toxic mold; and (f) electrical
equipment which contains any oil or dielectric fluid containing levels of
polychlorinated biphenyls in excess of fifty parts per million.

 

“Indebtedness”
means, with respect to a Person, at the time of computation thereof, all of the
following (without duplication): 
(a) all obligations of such Person in respect of money borrowed;
(b) all obligations of such Person, whether or not for money borrowed
(i) represented by notes payable, or drafts accepted, in each case
representing extensions of credit, (ii) evidenced by bonds, debentures,
notes or similar instruments, or (iii) constituting purchase money
indebtedness, conditional sales contracts, title retention debt instruments or
other similar instruments, upon which interest charges are customarily paid or
that are issued or assumed as full or partial payment for property or services
rendered; (c) Capitalized Lease Obligations of

 

11

 

such Person; (d) all
reimbursement obligations of such Person under any letters of credit or
acceptances (whether or not the same have been presented for payment);
(e) all Off-Balance Sheet Obligations of such Person; (f) all
obligations of such Person in respect of any purchase obligation, repurchase
obligation, takeout commitment or forward equity commitment, in each case
evidenced by a binding agreement (excluding any such obligation to the extent
the obligation can be satisfied by the issuance of Equity Interests);
(g) net obligations under any Derivatives Contract not entered into as a
hedge against existing Indebtedness, in an amount equal to the Derivatives
Termination Value thereof; (h) all Indebtedness of other Persons which
such Person has Guaranteed or is otherwise recourse to such Person (except for
guaranties of customary exceptions for fraud, misapplication of funds,
environmental indemnities, voluntary bankruptcy, involuntary bankruptcy and
other similar exceptions to recourse liability); (i) all Indebtedness of
another Person secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property
or assets owned by such Person, even though such Person has not assumed or
become liable for the payment of such Indebtedness or other payment obligation;
and (j) such Person’s pro rata share of the Indebtedness of any Unconsolidated
Affiliate of such Person.  Indebtedness
of any Person shall include Indebtedness of any partnership or joint venture in
which such Person is a general partner or joint venturer to the extent of such
Person’s pro rata share of the ownership of such partnership or joint venture
(except if such Indebtedness, or portion thereof, is recourse to such Person,
in which case the greater of such Person’s pro rata portion of such
Indebtedness or the amount of the recourse portion of the Indebtedness, shall be
included as Indebtedness of such Person). 
All Loans and Letter of Credit Liabilities shall constitute Indebtedness
of the Borrower.

 

“Intangible Assets” of any Person means at
any date the amount of (i) all write-ups (other than write-ups resulting from
write-ups of assets of a going concern business made within twelve months after
the acquisition of such business) in the book value of any asset owned by such
Person and (ii) all unamortized debt discount and expense, unamortized deferred
charges, capitalized start-up costs, goodwill, patents, licenses, trademarks,
trade names, copyrights, organization or developmental expenses, covenants not
to compete and other intangible items.

 

“Intellectual
Property” has the meaning given that term in Section 6.1.(t).

 

“Interest
Expense” means, for any period of determination, the Parent’s total
interest expense for such period determined in accordance with GAAP on a
consolidated basis plus the Parent’s pro rata share of Interest Expense
from Unconsolidated Affiliates of the Parent, without duplication for the most
recent period.  Interest Expense shall
exclude capitalized interest related to Indebtedness incurred to finance
Development Properties.

 

“Interest
Period” means with respect to any LIBOR Loan, each period commencing
on the date such LIBOR Loan is made or the last day of the next preceding
Interest Period for such Loan and ending 7 days, or 1, 2, 3 or 6 months
thereafter, as the Borrower may select in a Notice of Borrowing, Notice of
Continuation or Notice of Conversion, as the case may be, except that each
Interest Period (other than an Interest Period of 7-days’ duration) that
commences on the last Business Day of a calendar month shall end on the last
Business Day of the appropriate subsequent calendar month.  Notwithstanding the foregoing:  (i) if any Interest Period would
otherwise end after the Termination Date, such Interest Period shall end on the
Termination

 

12

 

Date; and (ii) each
Interest Period that would otherwise end on a day which is not a Business Day
shall end on the immediately following Business Day (or, if such immediately
following Business Day falls in the next calendar month, on the immediately
preceding Business Day).

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended.

 

“Investment”
means, (x) with respect to any Person, any acquisition or investment
(whether or not of a controlling interest) by such Person, by means of any of
the following:  (a) the purchase or
other acquisition of any Equity Interest in another Person, (b) a loan, advance
or extension of credit to, capital contribution to, Guaranty of Indebtedness
of, or purchase or other acquisition of any Indebtedness of, another Person,
including any partnership or joint venture interest in such other Person, or
(c) the purchase or other acquisition (in one transaction or a series of
transactions) of assets of another Person that constitute the business or a
division or operating unit of another Person and (y) with respect to any
Property or other asset, the acquisition thereof.  Any binding commitment to make an Investment
in any other Person, as well as any option of another Person to require an
Investment in such Person, shall constitute an Investment.  Except as expressly provided otherwise, for
purposes of determining compliance with any covenant contained in a Loan
Document, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.

 

“Investment Grade Rating” means a Credit
Rating of BBB-/Baa3 (or equivalent) or higher from either Rating Agency.

 

“Investment
Grade Rating Date” means the date on which the Parent first obtains
an Investment Grade Rating.

 

“KeyBank”
means KeyBank National Association, together with its successors and assigns.

 

“L/C
Commitment Amount” equals $50,000,000.

 

“Lender”
means each financial institution from time to time party hereto as a “Lender”,
together with its respective successors and permitted assigns, and as the
context requires, includes the Swingline Lender.

 

“Lending
Office” means, for each Lender and for each Type of Loan, the office
of such Lender specified in such Lender’s Administrative Questionnaire, or such
other office of such Lender of which such Lender may notify the Agent in
writing from time to time.

 

“Letter of
Credit” has the meaning given that term in Section 2.3.(a).

 

“Letter of
Credit Documents” means, with respect to any Letter of Credit,
collectively, any application therefor, any certificate or other document
presented in connection with a drawing under such Letter of Credit and any
other agreement, instrument or other document

 

13

 

governing or providing
for (a) the rights and obligations of the parties concerned or at risk
with respect to such Letter of Credit or (b) any collateral security for
any of such obligations.

 

“Letter of
Credit Liabilities” means, without duplication, at any time and in
respect of any Letter of Credit, the sum of (a) the Stated Amount of such
Letter of Credit plus (b) the aggregate unpaid principal amount of all
Reimbursement Obligations of the Borrower at such time due and payable in
respect of all drawings made under such Letter of Credit.  For purposes of this Agreement, a Lender
(other than the Lender acting as the Agent) shall be deemed to hold a Letter of
Credit Liability in an amount equal to its participation interest in the
related Letter of Credit under Section 2.3.(i), and the Lender acting as
the Agent shall be deemed to hold a Letter of Credit Liability in an amount
equal to its retained interest in the related Letter of Credit after giving
effect to the acquisition by the Lenders other than the Lender acting as the
Agent of their participation interests under such Section.

 

“Level” has the meaning given that term in
the definition of the term “Applicable Margin.”

 

“LIBOR”
means, for any LIBOR Loan for any Interest Period therefor, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
Reuters Screen LIBOR01 Page (or any successor page) as the London interbank
offered rate for deposits in Dollars at approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period.  If
for any reason such rate is not available, the term “LIBOR” shall mean, for any
LIBOR Loan for any Interest Period therefor, the applicable British Bankers’
Association LIBOR rate for deposits in Dollars as reported by any generally
recognized financial information service as of 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, and having a
maturity equal to such Interest Period. 
If for any reason none of the foregoing rates is available to the Agent,
LIBOR shall be, for any Interest Period, the rate determined by the Agent to be
the rate at which KeyBank or one of its affiliate banks offers to place
deposits in Dollars with first class banks in the London interbank market at
approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period, in the approximate amount of the relevant
LIBOR Loan and having a maturity equal to such Interest Period.

 

“LIBOR Loan”
means a Revolving Loan bearing interest at a rate based on LIBOR.

 

“Lien”
as applied to the property of any Person means: 
(a) any security interest, encumbrance, mortgage, deed to secure
debt, deed of trust, assignment of leases and rents, pledge, lien, charge or
lease constituting a Capitalized Lease Obligation, conditional sale or other
title retention agreement, or other security title or encumbrance of any kind
in respect of any property of such Person, or upon the income, rents or profits
therefrom; (b) any arrangement, express or implied, under which any
property of such Person is transferred, sequestered or otherwise identified for
the purpose of subjecting the same to the payment of Indebtedness or
performance of any other obligation in priority to the payment of the general,
unsecured creditors of such Person; (c) the filing of any financing
statement under the Uniform Commercial Code or its equivalent in any
jurisdiction, other than any precautionary filing not otherwise constituting or
giving rise to a Lien, including a financing statement filed (i) in
respect of a lease not

 

14

 

constituting a
Capitalized Lease Obligation pursuant to Section 9-505 (or a successor
provision) of the Uniform Commercial Code or its equivalent as in effect in an
applicable jurisdiction or (ii) in connection with a sale or other
disposition of accounts or other assets not prohibited by this Agreement in a
transaction not otherwise constituting or giving rise to a Lien; and (d) any
agreement by such Person to grant, give or otherwise convey any of the
foregoing.

 

“Loan”
means a Revolving Loan or a Swingline Loan.

 

“Loan
Document” means this Agreement, each Note, each Letter of Credit
Document, the Guaranty and each other document or instrument now or hereafter
executed and delivered by a Loan Party in connection with, pursuant to or
relating to this Agreement.

 

“Loan Party”
means each of the Borrower and each other Person who guarantees all or a
portion of the Obligations and/or who pledges any collateral security to secure
all or a portion of the Obligations. 
Schedule 1.1.(A) sets forth the Loan Parties in addition to the
Borrower as of the Agreement Date.

 

“Material
Adverse Effect” means a materially adverse effect on (a) the
business, assets, liabilities, condition (financial or otherwise), results of
operations or business prospects of the Parent and its Subsidiaries taken as a
whole, (b) the ability of the Borrower or any other Loan Party to perform
its obligations under any Loan Document to which it is a party, (c) the
validity or enforceability of any of the Loan Documents, (d) the rights
and remedies of the Lenders and the Agent under any of the Loan Documents or
(e) the timely payment of the principal of or interest on the Loans or other
amounts payable in connection therewith or the timely payment of all
Reimbursement Obligations.

 

“Material
Contract” means any contract or other arrangement (other than Loan
Documents), whether written or oral, to which the Parent, the Borrower, any Subsidiary
or any other Loan Party is a party as to which the breach, nonperformance,
cancellation or failure to renew by any party thereto could reasonably be
expected to have a Material Adverse Effect.

 

“Material Subsidiary”
means any Subsidiary owning or leasing
Properties which contribute more than $75,000,000 to Unencumbered Asset Value.

 

“Moody’s”
means Moody’s Investors Service, Inc., and its successors.

 

“Mortgage”
means a mortgage, deed of trust, deed to secure debt or similar security
instrument made by a Person owning an interest in real property granting a Lien
on such interest in real property as security for the payment of Indebtedness
of such Person or another Person.

 

“Mortgage
Receivable” means a promissory note secured by a Mortgage of which the
Borrower, a Guarantor or one of their respective Subsidiaries is the holder and
retains the rights of collection of all payments thereunder.

 

“Multiemployer
Plan” means at any time a multiemployer plan within the meaning of
Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then
making or

 

15

 

accruing an obligation to
make contributions or has within the preceding five plan years made
contributions, including for these purposes any Person which ceased to be a
member of the ERISA Group during such five year period.

 

“Negative Pledge” means, with respect to a given asset, any
provision of a document, instrument or agreement (other than any Loan Document)
which prohibits or purports to prohibit the creation or assumption of any Lien
on such asset as security for Indebtedness of the Person owning such asset or
any other Person; provided, however, that an agreement that conditions a Person’s
ability to encumber its assets upon the maintenance of one or more specified
ratios that limit such Person’s ability to encumber its assets but that do not
generally prohibit the encumbrance of its assets, or the encumbrance of
specific assets, shall not constitute a Negative Pledge.

 

“Net Operating Income” means, with respect to any Property
for any period, the sum of the following (without duplication): (a) rents
and other revenues received in the ordinary course from such Property
(excluding pre-paid rents and revenues and security deposits except to the
extent applied in satisfaction of tenants’ obligations for rent) minus (b) all
expenses paid or accrued related to the ownership, operation or maintenance of
such Property, including but not limited to taxes, assessments and the like,
insurance, utilities, payroll costs, maintenance, repair and landscaping
expenses, marketing expenses, and general and administrative expenses
(including an appropriate allocation for legal, accounting, advertising,
marketing and other expenses incurred in connection with such Property, but
specifically excluding general overhead expenses of the Parent or any
Subsidiary and any property management fees) minus (c) the greater
of (i) the actual property management fee paid during such period and (ii) an
imputed management fee in the amount of 3.0% of the gross revenues for such
Property for such period. Net Operating Income of any Person shall include such
Person’s pro rata share of Net Operating Income of its Unconsolidated
Affiliates. Net Operating Income shall be adjusted to remove any impact from
straight line rent leveling adjustments required under GAAP and amortization of
deferred market rent into income pursuant to Statement of Financial Accounting
Standards number 141. For purposes of determining Unencumbered Asset Value and
Total Asset Value, as applicable, with respect to any Property, if the Borrower
enters into a definitive lease with a lessee with respect such Property for
which such lessee has not yet occupied such Property and has not yet made any
rent payments to the Borrower, for the period not to exceed six (6) months
from the date of entering into such lease, “Net Operating Income” shall be
deemed to include the stated base rent scheduled to be paid by such lessee
minus operating expenses projected to be incurred by the Borrower during such
period with respect to such Property (“Imputed Rent”), as reasonably determined
by the Borrower in good faith; provided, however, the Imputed Rent shall only
be calculated with respect to not more than four (4) Properties at any one
time.

 

“Net Proceeds” means, with respect to any Equity Issuance by
a Person, the aggregate amount of all cash and the Fair Market Value of all
other property received by such Person in respect of such Equity Issuance net
of investment banking fees, legal fees, accountants’ fees, underwriting
discounts and commissions and other customary fees and expenses actually
incurred by such Person in connection with such Equity Issuance.

 

16

 

“Non-Controlled Property” means an Eligible
Unencumbered Property that is not a Wholly-Owned Property and where the Parent
or the Borrower directly or indirectly owns less that 80% of the Equity
Interests of the Subsidiary or Unconsolidated Affiliate that owns or leases
such Property.

 

“Nonrecourse Indebtedness” means, with respect to a Person,
Indebtedness for borrowed money (other than construction completion guarantees
with respect to Development Properties) in respect of which recourse for
payment is contractually limited to specific assets of such Person encumbered
by a Lien securing such Indebtedness; provided such contractual limitation to
specific assets may include customary exceptions for fraud, misapplication of funds, environmental indemnities, voluntary
bankruptcy, involuntary bankruptcy and other similar exceptions to recourse
liability.

 

“Note” means a Revolving Note or a Swingline Note.

 

“Notice of Borrowing” means a notice in the form of Exhibit B
to be delivered to the Agent pursuant to Section 2.1.(b) evidencing
the Borrower’s request for a borrowing of Revolving Loans.

 

“Notice of Continuation” means a notice in the form of Exhibit C
to be delivered to the Agent pursuant to Section 2.8. evidencing the
Borrower’s request for the Continuation of a LIBOR Loan.

 

“Notice of Conversion” means a notice in the form of Exhibit D
to be delivered to the Agent pursuant to Section 2.9. evidencing the
Borrower’s request for the Conversion of a Loan from one Type to another Type.

 

“Notice of Swingline Borrowing” means a notice in the form of
Exhibit E to be delivered to the Agent pursuant to Section 2.2.
evidencing the Borrower’s request for a Swingline Loan.

 

“Obligations” means, individually and collectively:  (a) the aggregate principal balance of,
and all accrued and unpaid interest on, all Loans; (b) all Reimbursement
Obligations and all other Letter of Credit Liabilities; and (c) all other
indebtedness, liabilities, obligations, covenants and duties of the Borrower
and the other Loan Parties owing to the Agent or any Lender of every kind,
nature and description, under or in respect of this Agreement or any of the
other Loan Documents, including, without limitation, the Fees and
indemnification obligations, whether direct or indirect, absolute or
contingent, due or not due, contractual or tortious, liquidated or
unliquidated, and whether or not evidenced by any promissory note.

 

“Occupancy Rate” means, with respect to a Property at any
time, the ratio, expressed as a percentage, of (a) the net rentable square
footage of such Property occupied by tenants that are not Affiliates paying
rent at market rates pursuant to binding leases as to which no monetary default
has occurred and is continuing to (b) the aggregate net rentable square
footage of such Property; provided, however, for purposes of the immediately
preceding clause (a): (i) if such tenant has executed a lease for space in
such Property and the Borrower or such tenant’s agents

 

17

 

are in the process of
preparing such space for physical occupancy, then such space shall be
considered occupied and (ii) net rentable square footage occupied by the
Parent or any Affiliate paying rent at market rates pursuant to binding leases
as to which no monetary default has occurred and is continuing (“Affiliate
Rented Space”) may be included in such calculation; provided, no more than
30,000 square feet of Affiliate Rented Space shall be used in the calculation
of Occupancy Rates of the Properties; provided, further, to the extent
Affiliate Rented Space exceeds 30,000 square feet in the aggregate with respect
to all Properties, such excess shall be allocated pro rata among each Property
with respect to which Affiliate Rented Space was included in the calculation of
the Occupancy Rate for such Property to reduce the Affiliate Rented Space used
in such calculation.

 

“OFAC” means U.S. Department of the Treasury’s Office of
Foreign Assets Control and any successor Governmental Authority.

 

“OFAC Review Process” means that certain review process
established by Agent to determine if any potential transferee of any interests
in, or any assignee of any portion of, a Commitment or Loan assigned by a
Lender is a party with whom the Agent and any Lender are restricted from doing
business under (i) the regulations of OFAC, including any Sanctioned
Person, or (ii) any other statute, executive order or other governmental
action or list (including the September 24, 2001 Executive Order Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to
Commit, or Support Terrorism.

 

“Off-Balance Sheet Obligations” means liabilities and
obligations of the Parent, the Borrower, any Subsidiary or any other Person in
respect of “off-balance sheet arrangements” (as defined in the SEC Off-Balance
Sheet Rules) which the Parent would be required to disclose in the “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”
section of the Parent’s report on Form 10-Q or Form 10-K (or their
equivalents) which the Parent is required to file with the Securities and
Exchange Commission (or any Governmental Authority substituted therefor). As
used in this definition, the term “SEC Off-Balance Sheet Rules” means the
Disclosure in Management’s Discussion and Analysis About Off-Balance Sheet
Arrangements, Securities Act Release No. 33-8182, 68 Fed. Reg. 5982 (Feb. 5,
2003) (codified at 17 CFR pts. 228, 229 and 249).

 

“Parent” has the meaning set forth in the introductory
paragraph hereof and shall include the Parent’s successors and permitted
assigns.

 

“Participant” has the meaning given that term in Section 12.5.(i).

 

“Patriot Act Customer Identification Process” means that
certain customer identification and review process established by the Agent
pursuant to the requirements of 31 U.S.C. §5318(1) and 31 C.F.R. §103.121
to verify the identity of all permitted transferees of interests in the
Borrower and any assignees of a portion of a Commitment or Loan assigned by a
Lender.

 

“PBGC” means the Pension Benefit Guaranty Corporation and any
successor agency.

 

18

 

“Permitted Liens” means, as to any Person:  (a) Liens securing taxes, assessments
and other charges or levies imposed by any Governmental Authority (excluding
any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any
Environmental Laws) or the claims of materialmen, mechanics, carriers,
warehousemen or landlords for labor, materials, supplies or rentals incurred in
the ordinary course of business, which are not at the time required to be paid
or discharged under Section 7.6.; (b) Liens consisting of deposits or
pledges made, in the ordinary course of business, in connection with, or to
secure payment of, obligations under workers’ compensation, unemployment
insurance or similar Applicable Laws; (c) Liens consisting of encumbrances
in the nature of zoning restrictions, easements, and rights or restrictions of
record on the use of real property, which do not materially detract from the
value of such property or impair the use thereof in the business of such
Person; (d) the rights of tenants under leases or subleases not interfering
with the ordinary conduct of business of such Person; (e) Liens in favor
of the Agent for the benefit of the Lenders; (f) Liens in favor of the
Borrower or a Guarantor securing obligations owing by a Subsidiary to the
Borrower or a Guarantor, which obligations have been subordinated to the
obligations owing by the Borrower and the Guarantors under the Loan Documents
on terms satisfactory to the Agent; and (g) Liens in existence as of the
Agreement Date and set forth in Part II of Schedule 6.1.(f).

 

“Person” means an individual, corporation, partnership,
limited liability company, association, trust or unincorporated organization,
or a government or any agency or political subdivision thereof.

 

“Plan” means at any time an employee pension benefit plan
(other than a Multiemployer Plan) which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Internal
Revenue Code and either (a) is maintained, or contributed to, by any
member of the ERISA Group for employees of any member of the ERISA Group or (b) has
at any time within the preceding five years been maintained, or contributed to,
by any Person which was at such time a member of the ERISA Group for employees
of any Person which was at such time a member of the ERISA Group.

 

“Post-Default Rate” means, in respect of any principal of any
Loan or any other Obligation that is not paid when due (whether at stated
maturity, by acceleration, by optional or mandatory prepayment or otherwise), a
rate per annum equal to the Base Rate as in effect from time to time plus
the Applicable Margin for Base Rate Loans plus two percent (2%).

 

“Preferred Dividends” means, for any period and without
duplication, all Restricted Payments paid during such period on Preferred
Securities issued by the Parent or a Subsidiary. Preferred Dividends shall not
include dividends or distributions paid or payable (a) solely in Equity
Interests payable to holders of such class of Equity Interests; (b) to the
Parent or a Subsidiary; or (c) constituting or resulting in the redemption
of Preferred Securities, other than scheduled redemptions not constituting
balloon, bullet or similar redemptions in full.

 

“Preferred Securities” means, with respect to any Person,
Equity Interests in such Person which are entitled to preference or priority
over any other Equity Interest in such Person in respect of the payment of
dividends or distribution of assets upon liquidation or both.

 

19

 

“Prime Rate” means the rate of interest per annum announced
publicly by the Lender then acting as the Agent as its prime rate from time to
time. The Prime Rate is not necessarily the best or the lowest rate of interest
offered by the Lender acting as the Agent or any other Lender.

 

“Principal Office” means the office of the Agent located at
127 Public Square, Cleveland, Ohio 44114, or such other office of the Agent as
the Agent may designate from time to time.

 

“Property” means any parcel of real property owned or leased
(in whole or in part) or operated by the Parent, the Borrower, any Subsidiary
or any Unconsolidated Affiliate of the Parent.

 

“Rating Agency” means S&P or Moody’s.

 

“Regulatory Change” means, with respect to any Lender, any
change effective after the Agreement Date in Applicable Law (including without
limitation, Regulation D of the Board of Governors of the Federal Reserve
System) or the adoption or making after such date of any interpretation,
directive or request applying to a class of banks, including such Lender, of or
under any Applicable Law (whether or not having the force of law and whether or
not failure to comply therewith would be unlawful) by any Governmental
Authority or monetary authority charged with the interpretation or
administration thereof or compliance by any Lender with any request or
directive regarding capital adequacy.

 

“Reimbursement Obligation” means the absolute, unconditional
and irrevocable obligation of the Borrower to reimburse the Agent for any
drawing honored by the Agent under a Letter of Credit.

 

“REIT” means a Person qualifying for treatment as a “real
estate investment trust” under the Internal Revenue Code.

 

“Requisite Lenders” means, as of any date, Lenders having at
least 66-2/3% of the aggregate amount of the Commitments (not held by
Defaulting Lenders who are not entitled to vote), or, if the Commitments have
been terminated or reduced to zero, Lenders holding at least 66-2/3% of the
principal amount of the aggregate outstanding Loans and Letter of Credit
Liabilities (not held by Defaulting Lenders who are not entitled to vote). Commitments,
Revolving Loans and Letter of Credit Liabilities held by Defaulting Lenders
shall be disregarded when determining the Requisite Lenders.

 

“Responsible Officer” means with respect to the Parent or any
Subsidiary, the chief executive officer, the chief operating officer, the chief
financial officer, or president of the Parent or such Subsidiary.

 

“Restricted Payment” means: 
(a) any dividend or other distribution, direct or indirect, on
account of any Equity Interest of the Parent or any Subsidiary now or hereafter
outstanding, except a dividend payable solely in Equity Interests of identical
class to the holders of that class;

 

20

 

(b) any redemption,
conversion, exchange, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any Equity Interest of the
Parent or any Subsidiary now or hereafter outstanding; and (c) any payment
made to retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire any Equity Interests of the Parent or any
Subsidiary now or hereafter outstanding.

 

“Revolving Loan” means a loan made by a Lender to the
Borrower pursuant to Section 2.1.(a).

 

“Revolving Note” has the meaning given that term in Section 2.10.(a).

 

“Sanctioned Entity” means (a) an agency of the
government of, (b) an organization directly or indirectly controlled by,
or (c) a Person resident in, in each case, a country that is subject to a
sanctions program identified on the list maintained by the OFAC and published
from time to time, as such program may be applicable to such agency,
organization or Person.

 

“Sanctioned Person” means a Person named on the list of
Specially Designated Nationals or Blocked Persons maintained by the OFAC as
published from time to time.

 

“Secured Indebtedness” means, with respect to a Person as of
any given date, the aggregate principal amount of all Indebtedness of such
Person outstanding at such date and that is secured in any manner by any Lien,
and in the case of the Parent or the Borrower, shall include (without
duplication) the Parent’s or the Borrower’s, respectively, pro rata share of
the Secured Indebtedness of its Unconsolidated Affiliates.

 

“Securities Act” means the Securities Act of 1933, as amended
from time to time, together with all rules and regulations issued
thereunder.

 

“Solvent” means, when used with respect to any Person, that (a) the
fair value and the fair salable value of its assets (excluding any Indebtedness
due from any affiliate of such Person) are each in excess of the fair valuation
of its total liabilities (including all contingent liabilities computed at the
amount which, in light of all the facts and circumstances existing at such
time, represents the amount that could reasonably be expected to become an
actual and matured liability); (b) such Person is able to pay its debts or
other obligations in the ordinary course as they mature; and (c) such
Person has capital not unreasonably small to carry on its business and all
business in which it proposes to be engaged.

 

“S&P” means Standard & Poor’s Rating Services, a
division of The McGraw-Hill Companies, Inc., and its successors.

 

“Stabilized
Property” means, any Property that is not a Development
Property.

 

“Stated Amount” means the amount available to be drawn by a
beneficiary under a Letter of Credit from time to time, as such amount may be
increased or reduced from time to time in accordance with the terms of such Letter
of Credit.

 

21

 

“Subsidiary” means, for any Person, any corporation,
partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership or other entity (without regard to
the occurrence of any contingency) is at the time directly or indirectly owned
or controlled by such Person or one or more Subsidiaries of such Person or by
such Person and one or more Subsidiaries of such Person, and shall include all
Persons the accounts of which are consolidated with those of such Person
pursuant to GAAP.

 

“Swingline Commitment” means the Swingline Lender’s
obligation to make Swingline Loans pursuant to Section 2.2. in an amount
up to, but not exceeding, $50,000,000, as such amount may be reduced from time
to time in accordance with the terms hereof.

 

“Swingline Lender” means KeyBank.

 

“Swingline Loan” means a loan made by the Swingline Lender to
the Borrower pursuant to Section 2.2.(a).

 

“Swingline Note” means the promissory note of the Borrower
payable to the order of the Swingline Lender in a principal amount equal to the
amount of the Swingline Commitment as originally in effect and otherwise duly
completed, substantially in the form of Exhibit F.

 

“Tangible Net Worth” means, as of any date of determination,
the stockholders’ equity of the Parent and its Subsidiaries determined on a
consolidated basis plus (a) accumulated depreciation and
amortization minus the following (to the extent reflected in determining
stockholders’ equity of the Parent and its Subsidiaries); (b) the amount
of any write-up in the book value of any assets contained in any balance sheet
resulting from revaluation thereof or any write-up in excess of the cost of
such assets acquired; and (c) all amounts appearing on the assets side of
any such balance sheet for assets which would be classified as intangible
assets under GAAP excluding such intangibles booked in connection with real
estate acquisitions with above or below market rents, all determined on a
consolidated basis.

 

“Taxes” has the meaning given that term in Section 3.12.

 

“Termination Date” means September 30, 2011, or such
later date to which the Termination Date may be extended pursuant to Section 2.12.

 

“Titled Agents” means each of the Co-Lead Arrangers, each of
the Documentation Agents, the Syndication Agent and their respective successors
and permitted assigns.

 

“Total Asset Value” means the sum of all of
the following of the Parent and its Subsidiaries on a consolidated basis,
without duplication, determined in accordance with GAAP applied on a consistent
basis: (a) cash and cash equivalents, plus (b) with respect to each
Stabilized Property owned by the Parent, the Borrower or any Subsidiary of the
Borrower or the Parent, (i)(A) Net Operating Income attributable to such
Stabilized Property for the fiscal quarter most recently ended multiplied by 4,
divided by (ii) the Capitalization Rate, plus (c) the GAAP

 

22

 

book value of all
Properties owned or leased entirely by the Parent, the Borrower or a Wholly
Owned Subsidiary and the pro-rata share of the Parent or the Borrower, as
applicable, of the GAAP book value of all other Properties owned or leased by
any Subsidiary that is not a Wholly Owned Subsidiary, in each case, acquired
during the two consecutive fiscal quarters most recently ended, plus (d) the
GAAP book value of all Development Properties (including Construction-in-Process),
plus (e) the GAAP book value of Unimproved Land, Mortgage Receivables and
other promissory notes. The Parent’s pro rata share of assets held by Unconsolidated
Affiliates will be included in Total Asset Value calculations consistent with
the above described treatment for wholly owned assets. For purposes of
determining Total Asset Value, Net Operating Income from (A) Properties
acquired during the two consecutive fiscal quarters most recently ended, (B) Properties
disposed of by the Parent, its Subsidiaries and Unconsolidated Affiliates
during the immediately preceding fiscal quarter and (C) Properties with
negative Net Operating Incomes shall be excluded from clause (b) above.

 

“Total Indebtedness” means all Indebtedness of the Parent
and its Subsidiaries determined on a consolidated basis.

 

“Type” with respect to any Revolving Loan, refers to whether
such Loan is a LIBOR Loan or Base Rate Loan.

 

“Unconsolidated Affiliate” means, with respect to any Person,
any other Person in whom such Person holds an Investment, which Investment is
accounted for in the financial statements of such Person on an equity basis of
accounting and whose financial results would not be consolidated under GAAP
with the financial results of such Person on the consolidated financial
statements of such Person.

 

“Unencumbered Adjusted NOI”  means,
for any period of determination, Adjusted Net Operating Income from Wholly
Owned Properties and the pro-rata share of Adjusted Net Operating Income from
Controlled Properties and Non-Controlled Properties as adjusted for any
non-recurring items during the reporting period; provided, however, “Unencumbered
Adjusted NOI” shall not be less than zero.

 

“Unencumbered Asset Value” means, without duplication, (a) (i) the
Unencumbered NOI (excluding Net Operating Income attributable to Development
Properties, Properties with negative Net Operating Incomes, Properties acquired
during the two consecutive fiscal quarters most recently ending and Properties
disposed of during the fiscal quarter most recently ending) for the fiscal
quarter most recently ending times four divided by (ii) the Capitalization
Rate, plus (b) the GAAP book value of all Wholly Owned Properties and the
pro-rata share of the Parent or the Borrower, as applicable, of the GAAP book
value of Controlled Properties and Non-Controlled Properties, in each case,
acquired during the two consecutive fiscal quarters most recently ended, plus (c) the
GAAP book value of all Development Properties (including the
Construction-in-Process) and Unimproved Land, in each case that constitute
Eligible Unencumbered Properties. For purposes of this definition, (x) to
the extent the Unencumbered Asset Value
attributable to Development Properties and Unimproved Land would exceed 35% of
the Unencumbered Asset Value,
such excess shall be excluded, (y) to the extent the Unencumbered Asset Value attributable
to Unimproved Land would exceed 15% of the

 

23

 

Unencumbered
Asset Value, such excess shall be excluded and (z) to the extent
the Unencumbered Asset Value
attributable to Non-Controlled Properties would exceed 15% of the Unencumbered Asset Value, such excess
shall be excluded.

 

“Unencumbered NOI” means, for any period of determination,
Net Operating Income from Wholly Owned Properties and the pro-rata share of Net
Operating Income from Controlled Properties and Non-Controlled Properties which
have been owned for the entire previous fiscal quarter as adjusted for any
non-recurring items during the reporting period; provided, however, “Unencumbered
NOI” shall not be less than zero.

 

“Unfunded Liabilities” means, with respect to any Plan at any
time, the amount (if any) by which (a) the value of all benefit
liabilities under such Plan, determined on a plan termination basis using the
assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA,
exceeds (b) the fair market value of all Plan assets allocable to such
liabilities under Title IV of ERISA (excluding any accrued but unpaid
contributions), all determined as of the then most recent valuation date for
such Plan, but only to the extent that such excess represents a potential
liability of a member of the ERISA Group to the PBGC or any other Person under
Title IV of ERISA.

 

“Unimproved Land” means land with respect to which no
development (other than improvements that are not material and are temporary in
nature) has occurred and for which no development is planned in the 12 months
following the date of determination.

 

“Unsecured Indebtedness” means Indebtedness which is not
Secured Indebtedness.

 

“Unsecured Interest Expense” means, for any period of
determination, Interest Expense for such period attributable to Unsecured
Indebtedness of the Parent and its Subsidiaries.

 

“Wholly Owned Property” means an Eligible Unencumbered
Property which is owned or leased by the Parent, the Borrower or a Wholly Owned
Subsidiary.

 

“Wholly Owned Subsidiary” means any Subsidiary of a Person in
respect of which all of the equity securities or other ownership interests
(other than, in the case of a corporation, directors’ qualifying shares) are at
the time directly or indirectly owned or controlled by such Person or one or
more other Subsidiaries of such Person or by such Person and one or more other
Subsidiaries of such Person.

 

Section 1.2.   General; References to Times.

 

Unless
otherwise indicated, all accounting terms, ratios and measurements shall be
interpreted or determined in accordance with GAAP; provided that, if at any
time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the
Requisite Lenders shall so request, the Agent, the Lenders and the Borrower
shall negotiate in good faith to amend such ratio or requirement to preserve
the original intent thereof in light of such change in GAAP (subject to the
approval of the Requisite Lenders); provided further that, until so amended, (i) such
ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the

 

24

 

Parent shall provide to
the Agent and the Lenders financial statements and other documents required
under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP. References in this Agreement to
“Sections”, “Articles”, “Exhibits” and “Schedules” are to sections, articles,
exhibits and schedules herein and hereto unless otherwise indicated. References
in this Agreement to any document, instrument or agreement (a) shall
include all exhibits, schedules and other attachments thereto, (b) shall
include all documents, instruments or agreements issued or executed in
replacement thereof, to the extent permitted hereby and (c) shall mean
such document, instrument or agreement, or replacement or predecessor thereto,
as amended, supplemented, restated or otherwise modified as of the date of this
Agreement and from time to time thereafter to the extent not prohibited hereby
and in effect at any given time. Wherever from the context it appears
appropriate, each term stated in either the singular or plural shall include
the singular and plural, and pronouns stated in the masculine, feminine or
neuter gender shall include the masculine, the feminine and the neuter. Unless
explicitly set forth to the contrary, a reference to “Subsidiary” means a
Subsidiary of the Parent or a Subsidiary of such Subsidiary, a reference to an “Affiliate”
means a reference to an Affiliate of the Parent and a reference to an “Unconsolidated
Affiliate” means a reference to an Unconsolidated Affiliate of the Parent. Titles
and captions of Articles, Sections, subsections and clauses in this Agreement
are for convenience only, and neither limit nor amplify the provisions of this
Agreement. Unless otherwise indicated, all references to time are references to
Cleveland, Ohio time.

 

Section 1.3.   Financial Attributes of Non-Wholly Owned
Subsidiaries.

 

When
determining the Parent’s or the Borrower’s compliance with any financial
covenant contained in any of the Loan Documents, only the Parent’s or the
Borrower’s, respectively, pro rata share of the financial attributes of a
Subsidiary that is not a Wholly Owned Subsidiary (other than the Borrower)
shall be included.

 

ARTICLE II. CREDIT FACILITY

 

Section 2.1.   Revolving Loans.

 

(a)           Generally. Subject to the
terms and conditions hereof, during the period from the Effective Date to but
excluding the Termination Date, each Lender severally and not jointly agrees to
make Revolving Loans to the Borrower in an aggregate principal amount at any
one time outstanding up to, but not exceeding, the amount of such Lender’s
Commitment. Subject to the terms and conditions of this Agreement, during the
period from the Effective Date to but excluding the Termination Date, the
Borrower may borrow, repay and reborrow Revolving Loans hereunder.

 

(b)           Requesting Revolving Loans. The
Borrower shall give the Agent notice pursuant to a Notice of Borrowing or
telephonic notice of each borrowing of Revolving Loans. Each Notice of
Borrowing shall be delivered to the Agent before 11:00 a.m. (i) in
the case of LIBOR Loans, on the date three Business Days prior to the proposed
date of such borrowing and (ii) in the case of Base Rate Loans, on the
date one Business Day prior to the proposed date of such borrowing. Any such
telephonic notice shall include all information to be specified in a written

 

25

 

Notice of Borrowing and
shall be promptly confirmed in writing by the Borrower pursuant to a Notice of
Borrowing sent to the Agent by telecopy on the same day of the giving of such
telephonic notice. The Agent will transmit by telecopy the information
contained in such Notice of Borrowing to each Lender promptly upon receipt by
the Agent. Each Notice of Borrowing or telephonic notice of each borrowing
shall be irrevocable once given and binding on the Borrower.

 

(c)           Disbursements of Revolving Loan
Proceeds. No later than 1:00 p.m. on the date specified in the Notice
of Borrowing, each Lender will make available for the account of its applicable
Lending Office to the Agent at the Principal Office, in immediately available
funds, the proceeds of the Revolving Loan to be made by such Lender. With
respect to Revolving Loans to be made after the Effective Date, unless the
Agent shall have been notified by any Lender prior to the specified date of
borrowing that such Lender does not intend to make available to the Agent the
Revolving Loan to be made by such Lender on such date, the Agent may assume
that such Lender will make the proceeds of such Revolving Loan available to the
Agent on the date of the requested borrowing as set forth in the Notice of
Borrowing and the Agent may (but shall not be obligated to), in reliance upon
such assumption, make available to the Borrower the amount of such Revolving Loan
to be provided by such Lender. Subject to satisfaction of the applicable
conditions set forth in Article V. for such borrowing, the Agent will make
the proceeds of such borrowing available to the Borrower no later than 2:00 p.m.
on the date and at the account specified by the Borrower in such Notice of
Borrowing.

 

(d)           Repayment of Loans Outstanding
under Existing Credit Agreement. The Borrower and the Lenders agree that on
the Effective Date all Loans (as defined in the Existing Credit Agreement)
outstanding under the Existing Credit Agreement shall be repaid with the
proceeds of the initial Loans to be made by the Lenders hereunder.

 

Section 2.2.   Swingline Loans.

 

(a)           Swingline Loans. Subject to
the terms and conditions hereof, during the period from the Effective Date to
but excluding the Termination Date, the Swingline Lender agrees to make
Swingline Loans to the Borrower in an aggregate principal amount at any one
time outstanding up to, but not exceeding, the amount of the Swingline
Commitment. If at any time the aggregate principal amount of the Swingline
Loans outstanding at such time exceeds the Swingline Commitment in effect at
such time, the Borrower shall immediately pay the Agent for the account of the
Swingline Lender the amount of such excess. Subject to the terms and conditions
of this Agreement, the Borrower may borrow, repay and reborrow Swingline Loans
hereunder.

 

(b)           Procedure for Borrowing Swingline
Loans. The Borrower shall give the Agent and the Swingline Lender notice
pursuant to a Notice of Swingline Borrowing or telephonic notice of each
borrowing of a Swingline Loan. Each Notice of Swingline Borrowing shall be
delivered to the Swingline Lender no later than 3:00 p.m. on the proposed
date of such borrowing. Any such notice given telephonically shall include all
information to be specified in a written Notice of Swingline Borrowing and
shall be promptly confirmed in writing by the Borrower pursuant to a Notice of
Swingline Borrowing sent to the Swingline Lender by telecopy on the same day of
the giving of such telephonic notice. On the date of the requested Swingline

 

26

 

Loan and subject to
satisfaction of the applicable conditions set forth in Article V. for such
borrowing, the Swingline Lender will make the proceeds of such Swingline Loan
available to the Borrower in Dollars, in immediately available funds, at the
account specified by the Borrower in the Notice of Swingline Borrowing not
later than 4:00 p.m. on such date.

 

(c)           Interest. Swingline Loans
shall bear interest at a per annum rate equal to the Base Rate plus the
Applicable Margin for Base Rate Loans. Interest payable on Swingline Loans is
solely for the account of the Swingline Lender. All accrued and unpaid interest
on Swingline Loans shall be payable on the dates and in the manner provided in Section 2.4.
with respect to interest on Base Rate Loans (except as the Swingline Lender and
the Borrower may otherwise agree in writing in connection with any particular
Swingline Loan).

 

(d)           Swingline Loan Amounts, Etc. Each
Swingline Loan shall be in the minimum amount of $1,000,000 and integral
multiples of $500,000 or such other minimum amounts agreed to by the Swingline
Lender and the Borrower. Any voluntary prepayment of a Swingline Loan must be
in integral multiples of $100,000 or the aggregate principal amount of all
outstanding Swingline Loans (or such other minimum amounts upon which the
Swingline Lender and the Borrower may agree) and in connection with any such
prepayment, the Borrower must give the Swingline Lender prior written notice
thereof no later than 10:00 a.m. on the date of such prepayment. The
Swingline Loans shall, in addition to this Agreement, be evidenced by the
Swingline Note.

 

(e)           Repayment and Participations of
Swingline Loans. The Borrower agrees to repay each Swingline Loan within
one Business Day of demand therefor by the Swingline Lender and in any event,
within 5 Business Days after the date such Swingline Loan was made. Notwithstanding
the foregoing, the Borrower shall repay the entire outstanding principal amount
of, and all accrued but unpaid interest on, the Swingline Loans on the
Termination Date (or such earlier date as the Swingline Lender and the Borrower
may agree in writing). In lieu of demanding repayment of any outstanding
Swingline Loan from the Borrower and if the Borrower has not already submitted
a timely Notice of Borrowing for the purpose of repaying such Swingline Loan,
the Swingline Lender may, on behalf of the Borrower (which hereby irrevocably
directs the Swingline Lender to act on its behalf for such purpose), request a
borrowing of Base Rate Loans from the Lenders in an amount equal to the
principal balance of such Swingline Loan. The amount limitations of Section 3.5.(a) shall
not apply to any borrowing of Base Rate Loans made pursuant to this subsection.
The Swingline Lender shall give notice to the Agent of any such borrowing of
Base Rate Loans not later than 12:00 noon on the proposed date of such
borrowing and the Agent shall give prompt notice of such borrowing to the
Lenders. No later than 2:00 p.m. on such date, each Lender will make
available to the Agent at the Principal Office for the account of Swingline
Lender in immediately available funds, the proceeds of the Base Rate Loan to be
made by such Lender and, to the extent of such Base Rate Loan, such Lender’s
participation in the Swingline Loan so repaid shall be deemed to be funded by
the Base Rate Loan. The Agent shall pay the proceeds of such Base Rate Loans to
the Swingline Lender, which shall apply such proceeds to repay such Swingline
Loan. At the time each Swingline Loan is made, each Lender shall automatically
(and without any further notice or action) be deemed to have purchased from the
Swingline Lender, without recourse or warranty, an undivided interest and
participation to the extent of such Lender’s Commitment Percentage in

 

27

 

such Swingline Loan. If
the Lenders are prohibited from making Loans required to be made under this
subsection for any reason, including without limitation, the occurrence of any
Default or Event of Default described in Section 10.1.(f) or
10.1.(g), upon notice from the Agent or the Swingline Lender, each Lender
severally agrees to pay to the Agent for the account of the Swingline Lender in
respect of such participation the amount of such Lender’s Commitment Percentage
of each outstanding Swingline Loan. If such amount is not in fact made
available to the Agent by any Lender, the Swingline Lender shall be entitled to
recover such amount on demand from such Lender, together with accrued interest
thereon for each day from the date of demand thereof, at the Federal Funds Rate.
If such Lender does not pay such amount forthwith upon demand therefor by the
Agent or the Swingline Lender, and until such time as such Lender makes the
required payment, the Swingline Lender shall be deemed to continue to have
outstanding Swingline Loans in the amount of such unpaid participation
obligation for all purposes of the Loan Documents (other than those provisions
requiring the other Lenders to purchase a participation therein). Further, such
Lender shall be deemed to have assigned any and all payments made of principal
and interest on its Loans, and any other amounts due to it hereunder, to the
Swingline Lender to fund Swingline Loans in the amount of the participation in
Swingline Loans that such Lender failed to purchase pursuant to this Section until
such amount has been purchased (as a result of such assignment or otherwise). A
Lender’s obligation to make payments in respect of a participation in a
Swingline Loan shall be absolute and unconditional and shall not be affected by
any circumstance whatsoever, including, without limitation, (i) any claim
of setoff, counterclaim, recoupment, defense or other right which such Lender
or any other Person may have or claim against the Agent, the Swingline Lender
or any other Person whatsoever, (ii) the occurrence or continuation of a
Default or Event of Default (including, without limitation, any of the Defaults
or Events of Default described in Sections 10.1.(f) or 10.1.(g)) or
the termination of any Lender’s Revolving Commitment, (iii) the existence
(or alleged existence) of an event or condition which has had or could have a
Material Adverse Effect, (iv) any breach of any Loan Document by the
Agent, any Lender or the Borrower or (v) any other circumstance, happening
or event whatsoever, whether or not similar to any of the foregoing.

 

Section 2.3.   Letters of Credit.

 

(a)           Letters of Credit. Subject to
the terms and conditions of this Agreement, the Agent, on behalf of the
Lenders, agrees to issue for the account of the Borrower during the period from
and including the Effective Date to, but excluding, the date 30 days prior to the
Termination Date one or more letters of credit (each a “Letter of Credit”) up
to a maximum aggregate Stated Amount at any one time outstanding not to exceed
the L/C Commitment Amount.

 

(b)           Terms of Letters of Credit. At
the time of issuance, the amount, form, terms and conditions of each Letter of
Credit, and of any drafts or acceptances thereunder, shall be subject to
approval by the Agent and the Borrower. Notwithstanding the foregoing, in no
event may the expiration date of any Letter of Credit extend beyond the earlier
of (i) the date one year from its date of issuance or (ii) the
Termination Date; provided, however, a Letter of Credit may contain a provision
providing for the automatic extension of the expiration date in the absence of
a notice of non-renewal from the Agent but in no event shall any such provision
permit the extension of the expiration date of such Letter of Credit beyond the
Termination Date.

 

28

 

(c)           Requests for Issuance of Letters of
Credit. The Borrower shall give the Agent written notice (or telephonic
notice promptly confirmed in writing) at least 5 Business Days prior to the
requested date of issuance of a Letter of Credit, such notice to describe in
reasonable detail the proposed terms of such Letter of Credit and the nature of
the transactions or obligations proposed to be supported by such Letter of
Credit, and in any event shall set forth with respect to such Letter of Credit
the proposed (i) Stated Amount, (ii) the beneficiary, and (iii) the
expiration date. The Borrower shall also execute and deliver such customary
letter of credit application forms as requested from time to time by the Agent.
Provided the Borrower has given the notice prescribed by the first sentence of
this subsection and subject to the other terms and conditions of this
Agreement, including the satisfaction of any applicable conditions precedent
set forth in Article V., the Agent shall issue the requested Letter of
Credit on the requested date of issuance for the benefit of the stipulated
beneficiary. Upon the written request of the Borrower, the Agent shall deliver
to the Borrower a copy of each issued Letter of Credit within a reasonable time
after the date of issuance thereof. To the extent any term of a Letter of
Credit Document is inconsistent with a term of any Loan Document, the term of
such Loan Document shall control.

 

(d)           Reimbursement Obligations. Upon
receipt by the Agent from the beneficiary of a Letter of Credit of any demand
for payment under such Letter of Credit, the Agent shall promptly notify the
Borrower of the amount to be paid by the Agent as a result of such demand and
the date on which payment is to be made by the Agent to such beneficiary in
respect of such demand; provided, however, the Agent’s failure to give, or
delay in giving, such notice shall not discharge the Borrower in any respect
from the applicable Reimbursement Obligation. The Borrower hereby
unconditionally and irrevocably agrees to pay and reimburse the Agent for the
amount of each demand for payment under such Letter of Credit on or prior to
the date on which payment is to be made by the Agent to the beneficiary
thereunder, without presentment, demand, protest or other formalities of any
kind (other than notice as provided in this subsection). Upon receipt by the
Agent of any payment in respect of any Reimbursement Obligation, the Agent
shall promptly pay to each Lender that has acquired a participation therein
under the second sentence of Section 2.3.(i) such Lender’s Commitment
Percentage of such payment.

 

(e)           Manner of Reimbursement. Upon
its receipt of a notice referred to in the immediately preceding
subsection (d), the Borrower shall advise the Agent whether or not the
Borrower intends to borrow hereunder to finance its obligation to reimburse the
Agent for the amount of the related demand for payment and, if it does, the
Borrower shall submit a timely request for such borrowing as provided in the
applicable provisions of this Agreement. If the Borrower fails to so advise the
Agent, or if the Borrower fails to reimburse the Agent for a demand for payment
under a Letter of Credit by the date of such payment, then (i) if the
applicable conditions contained in Article V. would permit the making of
Revolving Loans, the Borrower shall be deemed to have requested a borrowing of
Revolving Loans (which shall be Base Rate Loans) in an amount equal to the
unpaid Reimbursement Obligation and the Agent shall give each Lender prompt
notice of the amount of the Revolving Loan to be made available to the Agent
not later than 1:00 p.m. and (ii) if such conditions would not permit
the making of Revolving Loans, the provisions of subsection (j) of
this Section shall apply. The limitations of Section 3.5.(a) shall
not apply to any borrowing of Base Rate Loans under this subsection.

 

29

 

(f)            Effect of Letters of Credit on
Commitments. Upon the issuance by the Agent of any Letter of Credit and
until such Letter of Credit shall have expired or been terminated, the
Commitment of each Lender shall be deemed to be utilized for all purposes of
this Agreement in an amount equal to the product of (i) such Lender’s
Commitment Percentage and (ii) the sum of (A) the Stated Amount of
such Letter of Credit plus (B) any related Reimbursement Obligations then
outstanding.

 

(g)           Agent’s Duties Regarding Letters
of Credit; Unconditional Nature of Reimbursement Obligations. In examining
documents presented in connection with drawings under Letters of Credit and
making payments under such Letters of Credit against such documents, the Agent
shall only be required to use the same standard of care as it uses in
connection with examining documents presented in connection with drawings under
letters of credit in which it has not sold participations and making payments
under such letters of credit. The Borrower assumes all risks of the acts and
omissions of, or misuse of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. In furtherance and not in limitation
of the foregoing, neither the Agent nor any of the Lenders shall be responsible
for (i) the form, validity, sufficiency, accuracy, genuineness or legal
effects of any document submitted by any party in connection with the
application for and issuance of or any drawing honored under any Letter of
Credit even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any Letter of Credit, or the rights or benefits thereunder
or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason; (iii) failure of the beneficiary of any Letter
of Credit to comply fully with conditions required in order to draw upon such
Letter of Credit; (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telex, telecopy or
otherwise, whether or not they be in cipher; (v) errors in interpretation
of technical terms; (vi) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under any Letter
of Credit, or of the proceeds thereof; (vii) the misapplication by the
beneficiary of any Letter of Credit, or the proceeds of any drawing under any
Letter of Credit; or (viii) any consequences arising from causes beyond
the control of the Agent or the Lenders. None of the above shall affect, impair
or prevent the vesting of any of the Agent’s or any Lender’s rights or powers
hereunder. Any action taken or omitted to be taken by the Agent under or in
connection with any Letter of Credit, if taken or omitted in the absence of
gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final, non-appealable judgment), shall not create against the
Agent or any Lender any liability to the Borrower or any Lender. In this
regard, the obligation of the Borrower to reimburse the Agent for any drawing
made under any Letter of Credit shall be absolute, unconditional and
irrevocable and shall be paid strictly in accordance with the terms of this
Agreement and any other applicable Letter of Credit Document under all
circumstances whatsoever, including without limitation, the following
circumstances: (A) any lack of validity or enforceability of any Letter of
Credit Document or any term or provisions therein; (B) any amendment or
waiver of or any consent to departure from all or any of the Letter of Credit
Documents; (C) the existence of any claim, setoff, defense or other right
which the Borrower may have at any time against the Agent, any Lender, any
beneficiary of a Letter of Credit or any other Person, whether in connection
with this Agreement, the transactions contemplated hereby or in the Letter of
Credit Documents or any unrelated transaction; (D) any breach of contract
or dispute between the Borrower, the

 

30

 

Agent, any Lender or any
other Person; (E) any demand, statement or any other document presented
under a Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein or made in connection
therewith being untrue or inaccurate in any respect whatsoever; (F) any
non-application or misapplication by the beneficiary of a Letter of Credit of
the proceeds of any drawing under such Letter of Credit; (G) payment by
the Agent under any Letter of Credit against presentation of a draft or
certificate which does not strictly comply with the terms of such Letter of
Credit; and (H) any other act, omission to act, delay or circumstance
whatsoever that might, but for the provisions of this Section, constitute a
legal or equitable defense to or discharge of the Borrower’s Reimbursement
Obligations. Notwithstanding anything to the contrary contained in this Section or
Section 12.9., but not in limitation of the Borrower’s unconditional
obligation to reimburse the Agent for any drawing made under a Letter of Credit
as provided in this Section, the Borrower shall have no obligation to indemnify
the Agent or any Lender in respect of any liability incurred by the Agent or a
Lender arising solely out of the gross negligence or willful misconduct of the
Agent or a Lender in respect of a Letter of Credit as determined by a court of
competent jurisdiction in a final, non-appealable judgment. Except as otherwise
provided in this Section, nothing in this Section shall affect any rights
the Borrower may have with respect to the gross negligence or willful
misconduct of the Agent or any Lender with respect to any Letter of Credit.

 

(h)           Amendments, Etc. The issuance
by the Agent of any amendment, supplement or other modification to any Letter
of Credit shall be subject to the same conditions applicable under this
Agreement to the issuance of new Letters of Credit (including, without
limitation, that the request therefor be made through the Agent), and no such
amendment, supplement or other modification shall be issued unless either (i) the
respective Letter of Credit affected thereby would have complied with such
conditions had it originally been issued hereunder in such amended,
supplemented or modified form or (ii) the Requisite Lenders (or all of the
Lenders if required by Section 13.6.) shall have consented thereto. In
connection with any such amendment, supplement or other modification, the
Borrower shall pay the Fees, if any, payable under the last sentence of Section 3.6.(b).

 

(i)            Lenders’ Participation in Letters
of Credit. Immediately upon the issuance by the Agent of any Letter of
Credit each Lender shall be deemed to have irrevocably and unconditionally
purchased and received from the Agent, without recourse or warranty, an
undivided interest and participation to the extent of such Lender’s Commitment
Percentage of the liability of the Agent with respect to such Letter of Credit,
and each Lender thereby shall absolutely, unconditionally and irrevocably
assume, as primary obligor and not as surety, and shall be unconditionally
obligated to the Agent to pay and discharge when due, such Lender’s Commitment
Percentage of the Agent’s liability under such Letter of Credit. In addition,
upon the making of each payment by a Lender to the Agent in respect of any
Letter of Credit pursuant to the immediately following subsection (j),
such Lender shall, automatically and without any further action on the part of
the Agent or such Lender, acquire (i) a participation in an amount equal
to such payment in the Reimbursement Obligation owing to the Agent by the
Borrower in respect of such Letter of Credit and (ii) a participation in a
percentage equal to such Lender’s Commitment Percentage in any interest or
other amounts payable by the Borrower in respect of such Reimbursement
Obligation (other than the Fees payable to the Agent pursuant to the third and
last sentences of Section 3.6.(b)).

 

31

 

(j)            Payment
Obligation of Lenders. Each Lender severally agrees to pay to the Agent on
demand in immediately available funds in Dollars the amount of such Lender’s
Commitment Percentage of each drawing paid by the Agent under each Letter of
Credit to the extent such amount is not reimbursed by the Borrower pursuant to Section 2.3.(d);
provided, however, that in respect of any drawing under any Letter of Credit,
the maximum amount that any Lender shall be required to fund, whether as a
Revolving Loan or as a participation, shall not exceed such Lender’s Commitment
Percentage of such drawing. If the notice referenced in the second sentence of Section 2.3.(e) is
received by a Lender not later than 11:00 a.m., then such Lender shall
make such payment available to the Agent not later than 2:00 p.m. on the
date of demand therefor; otherwise, such payment shall be made available to the
Agent not later than 1:00 p.m. on the next succeeding Business Day. Each
such Lender’s obligation to make such payments to the Agent under this
subsection, and the Agent’s right to receive the same, shall be absolute,
irrevocable and unconditional and shall not be affected in any way by any
circumstance whatsoever, including without limitation, (i) the failure of
any other Lender to make its payment under this subsection, (ii) the
financial condition of the Borrower or any other Loan Party, (iii) the
existence of any Default or Event of Default, including any Event of Default
described in Section 10.1.(f) or 10.1.(g) or (iv) the
termination of the Commitments. Each such payment to the Agent shall be made
without any offset, abatement, withholding or deduction whatsoever.

 

(k)           Information
to Lenders. Upon the request of any Lender from time to time, the Agent
shall deliver to such Lender information reasonably requested by such Lender
with respect to each Letter of Credit then outstanding. Other than as set forth
in this subsection, the Agent shall have no duty to notify the Lenders
regarding the issuance or other matters regarding Letters of Credit issued
hereunder. The failure of the Agent to perform its requirements under this
subsection shall not relieve any Lender from its obligations under Section 2.3.(j).

 

(l)            Letter of Credit
Outstanding under Existing Credit Agreement.

 

(i)            The
Borrower, the Parent, the Agent and the Lenders agree that letter of credit
no. SM216034 (the “Existing Letter of Credit”) dated October 5, 2005
for the benefit of Citigroup Global Markets Realty having a current Stated
Amount of $599,998 and issued by Wachovia Bank, National Association (“Wachovia”)
under the Existing Credit Agreement, shall be deemed to be a “Letter of Credit”
issued and outstanding under this Agreement subject to the terms of this Section 2.3.(l).
Accordingly, (x) except as provided otherwise in this Section 2.3.(l) or
as the context requires otherwise, references to the “Agent” relating to the
Existing Letter of Credit shall be deemed to be references to Wachovia, (y) each
Lender confirms its purchase of a participation in the Existing Letter of
Credit as provided in Section 2.3.(i) and (z) each Lender
confirms its obligation to indemnify Wachovia for Indemnifiable Amounts
relating to the Existing Letter of Credit pursuant and subject to the terms of Section 11.7.

 

(ii)           Notwithstanding
Section 2.3.(d), upon receipt by Wachovia from the beneficiary of the
Existing Letter of Credit of any demand for payment under such Letter of
Credit, Wachovia shall promptly notify the Agent (who shall in turn promptly
notify the Borrower) of the amount to be paid by Wachovia as a result of such
demand and the

 

32

 

date
on which payment is to be made by Wachovia to such beneficiary in respect of
such demand; provided, however, the failure of Wachovia or the Agent to give,
or delay in giving, such notice shall not discharge the Borrower in any respect
from the applicable Reimbursement Obligation.

 

(iii)          Notwithstanding Section 2.3.(e), upon
the Borrower’s receipt of a notice referred to in the immediately preceding
clause (ii), the Borrower shall advise the Agent and Wachovia whether or
not the Borrower intends to borrow hereunder to finance its obligation to
reimburse Wachovia for the amount of the related demand for payment and, if it
does, the Borrower shall submit a timely request for such borrowing as provided
in the applicable provisions of this Agreement. If the Borrower fails to so
advise the Agent and Wachovia, or if the Borrower fails to reimburse Wachovia
for a demand for payment under the Existing Letter of Credit by the date of
such payment (in which case, Wachovia shall give prompt notice of such failure
to the Agent), then (x) if the applicable conditions contained in Article V. would permit the making of
Revolving Loans, the Borrower shall be deemed to have requested a borrowing of
Revolving Loans (which shall be Base Rate Loans) in an amount equal to the
unpaid Reimbursement Obligation, and the Agent shall give each Lender prompt
notice of the amount of the Revolving Loan to be made available to the Agent
for the account of Wachovia not later than 1:00 p.m. (which the Agent
shall pay to Wachovia not later than 2:00 p.m.) and (y) if such
conditions would not permit the making of Revolving Loans, the provisions of Section 2.3.(j) shall
apply. The limitations of Section 3.5.(a) shall
not apply to any borrowing of Base Rate Loans under this clause.

 

(iv)          Notwithstanding
Section 2.3.(j), each Lender severally agrees to pay to the Agent for the
account of Wachovia on demand by the Agent at Wachovia’s direction in
immediately available funds in Dollars the amount of such Lender’s Commitment
Percentage of each drawing paid by Wachovia under the Existing Letter of Credit
to the extent such amount is not reimbursed by the Borrower pursuant to the
immediately preceding clause (iii); provided, however, that in respect of
any drawing under the Existing Letter of Credit, the maximum amount that any
Lender shall be required to fund, whether as a Revolving Loan or as a
participation, shall not exceed such Lender’s Commitment Percentage of such
drawing. If the notice referenced in the second sentence of the immediately
preceding clause (iii) is received by a Lender not later than 11:00 a.m.,
then such Lender shall make such payment available to the Agent for the account
of Wachovia not later than 2:00 p.m. on the date of demand therefor;
otherwise, such payment shall be made available to the Agent for the Account of
Wachovia not later than 1:00 p.m. on the next succeeding Business Day. Each
such Lender’s obligation to make such payments to the Agent under this clause,
and Wachovia’s right to receive the same, shall be absolute, irrevocable and
unconditional and shall not be affected in any way by any circumstance
whatsoever, including without limitation, (A) the failure of any other
Lender to make its payment under this clause, (B) the financial condition
of the Borrower or any other Loan Party, (C) the existence of any Default
or Event of Default, including any Event of Default described in Section 10.1.(f) or 10.1.(g) or (D) the
termination of the Commitments. Each such payment to the Agent shall be made
without any offset, abatement, withholding or deduction whatsoever.

 

33

 

(v)           Without
the prior written consent of the Requisite Lenders, the Borrower and Wachovia
agree not to amend the terms of the Existing Letter of Credit if such amendment
would (x) increase the Stated Amount or (y) extend the expiration
date of the Existing Letter of Credit to a date beyond the Termination Date
(including any amendment to the expiry date resulting from the operation of an
automatic extension provision of the Existing Letter of Credit) unless Wachovia
shall agree at such time that the Existing Letter of Credit shall no longer be
deemed to be a “Letter of Credit” issued and outstanding under this Agreement.

 

(vi)          Any
fees payable under the third and last sentences of Section 3.6.(c) in
respect of the Existing Letter of Credit shall be for the account of Wachovia.

 

(vii)         Any payments to be made by the Borrower under Section 2.13.
in respect of the Existing Letter of Credit shall be made to the Agent, and not
Wachovia, for deposit into the Collateral Account. Notwithstanding Section 10.5.(c),
if a drawing pursuant to the Existing Letter of Credit occurs on or prior to
the expiration date of the Existing Letter of Credit, the Borrower and the
Lenders authorize the Agent to use the monies deposited in the Collateral
Account to make payment to Wachovia with respect to such drawing.

 

Section 2.4. Rates and Payment of
Interest on Loans.

 

(a)           Rates. The
Borrower promises to pay to the Agent for the account of each Lender interest
on the unpaid principal amount of each Loan made by such Lender for the period
from and including the date of the making of such Loan to but excluding the
date such Loan shall be paid in full, at the following per annum rates:

 

(i)            during
such periods as such Loan is a Base Rate Loan, at the Base Rate (as in effect
from time to time) plus the Applicable Margin for Base Rate Loans; and

 

(ii)           during
such periods as such Loan is a LIBOR Loan, at Adjusted LIBOR for such Loan for
the Interest Period therefor plus the Applicable Margin for LIBOR Loans.

 

Notwithstanding
the foregoing, during the continuance of an Event of Default, the Borrower
shall pay to the Agent for the account of each Lender interest at the
Post-Default Rate on the outstanding principal amount of any Loan made by such
Lender, on all Reimbursement Obligations and on any other amount payable by the
Borrower hereunder or under the Notes held by such Lender to or for the account
of such Lender (including without limitation, accrued but unpaid interest to
the extent permitted under Applicable Law).

 

(b)           Payment of Interest.
Accrued and unpaid interest on each Loan shall be payable (i) in the case
of a Base Rate Loan, monthly in arrears on the first day of each calendar
month, (ii) in the case of a LIBOR Loan, in arrears on the last day of
each Interest Period therefor, and, if such Interest Period is longer than
three months, at three-month intervals following the first day of such Interest
Period, and (iii) in the case of any Loan, in arrears upon the payment,

 

34

 

prepayment or
Continuation thereof or the Conversion of such Loan to a Loan of another Type
(but only on the principal amount so paid, prepaid, Continued or Converted). Interest
payable at the Post-Default Rate shall be payable from time to time on demand. Promptly
after the determination of any interest rate provided for herein or any change
therein, the Agent shall give notice thereof to the Lenders to which such
interest is payable and to the Borrower. All determinations by the Agent of an
interest rate hereunder shall be conclusive and binding on the Lenders and the
Borrower for all purposes, absent manifest error.

 

(c)           Inaccurate Financial
Statements or Compliance Certificates. If any financial statement or
Compliance Certificate delivered pursuant to Section 8.3. is shown to be
inaccurate as a result of any fraudulent act or omission of a Loan Party or its
agents or representatives acting on behalf of such Loan Party (regardless of
whether this Agreement is in effect when such inaccuracy is discovered), and
such inaccuracy, if corrected, would have led to the application of a higher
Applicable Margin for any period prior to the Investment Grade Rating Date (an “Applicable
Period”) than the Applicable Margin applied for such Applicable Period, then (i)
the Borrower shall immediately deliver to the Agent a correct Compliance
Certificate for such Applicable Period and (ii) the Borrower shall
immediately pay to the Agent for the account of the Lenders the additional
accrued additional interest owing calculated based on such higher Applicable
Margin for such Applicable Period, which payment shall be promptly applied by
the Agent in accordance with Section 3.2. This subsection shall not in any
way limit the rights of the Agent and Lenders (x) with respect to the last
sentence of the immediately preceding subsection (a) or (y) under
Article X.

 

Section 2.5. Number of Interest Periods.

 

There
may be no more than 8 different Interest Periods for LIBOR Loans outstanding at
the same time (for which purpose Interest Periods described in the definition
of the term “Interest Period” shall be deemed to be different Interest Periods
even if they are coterminous).

 

Section 2.6. Repayment of Loans.

 

The
Borrower shall repay the entire outstanding principal amount of, and all
accrued but unpaid interest on, the Revolving Loans on the Termination Date.

 

Section 2.7. Prepayments.

 

(a)           Optional. Subject
to Section 4.4., the Borrower may prepay any Loan at any time without
premium or penalty. The Borrower shall give the Agent at least one Business Day’s
prior written notice of the prepayment of any Revolving Loan.

 

(b)           Mandatory. If at
any time the aggregate principal amount of all outstanding Revolving Loans,
together with the aggregate amount of all Letter of Credit Liabilities and the
aggregate principal amount of all outstanding Swingline Loans, exceeds the
aggregate amount of the Commitments in effect at such time, the Borrower shall
immediately pay to the Agent for the accounts of the Lenders the amount of such
excess.

 

35

 

All
payments under this subsection (b) shall be applied to pay all amounts of
principal outstanding on the Loans and any Reimbursement Obligations pro rata
in accordance with Section 3.2. and if any Letters of Credit are
outstanding at such time the remainder, if any, shall be deposited into the
Collateral Account for application to any Reimbursement Obligations. If the
Borrower is required to pay any outstanding LIBOR Loans by reason of this Section prior
to the end of the applicable Interest Period therefor, the Borrower shall pay
all amounts due under Section 4.4.

 

Section 2.8. Continuation.

 

So
long as no Event of Default shall exist, the Borrower may on any Business Day,
with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or any
portion thereof as a LIBOR Loan by selecting a new Interest Period for such
LIBOR Loan. Each new Interest Period selected under this Section shall
commence on the last day of the immediately preceding Interest Period. Each
selection of a new Interest Period shall be made by the Borrower giving to the
Agent a Notice of Continuation not later than 11:00 a.m. on the third
Business Day prior to the date of any such Continuation. Such notice by the
Borrower of a Continuation shall be by telephone or telecopy, confirmed
immediately in writing if by telephone, in the form of a Notice of
Continuation, specifying (a) the proposed date of such Continuation, (b) the
LIBOR Loans and portions thereof subject to such Continuation and (c) the
duration of the selected Interest Period, all of which shall be specified in
such manner as is necessary to comply with all limitations on Loans outstanding
hereunder. Each Notice of Continuation shall be irrevocable by and binding on
the Borrower once given. Promptly after receipt of a Notice of Continuation, the
Agent shall notify each Lender by telecopy, or other similar form of
transmission, of the proposed Continuation. If the Borrower shall fail to
select in a timely manner a new Interest Period for any LIBOR Loan in
accordance with this Section, or if an Event of Default shall exist, such Loan
will automatically, on the last day of the current Interest Period therefor,
Convert into a Base Rate Loan notwithstanding the first sentence of Section 2.9.
or the Borrower’s failure to comply with any of the terms of such Section.

 

Section 2.9. Conversion.

 

The Borrower may
on any Business Day, upon the Borrower’s giving of a Notice of Conversion to
the Agent, Convert all or a portion of a Loan of one Type into a Loan of
another Type; provided, however, a Base Rate Loan may not be Converted to a
LIBOR Loan if an Event of Default shall exist. Any Conversion of a LIBOR Loan
into a Base Rate Loan shall be made on, and only on, the last day of an
Interest Period for such LIBOR Loan and, upon Conversion of a Base Rate Loan
into a LIBOR Loan, the Borrower shall pay accrued interest to the date of
Conversion on the principal amount so Converted. Each such Notice of Conversion
shall be given not later than 11:00 a.m. on the Business Day prior to the
date of any proposed Conversion into Base Rate Loans and on the third Business
Day prior to the date of any proposed Conversion into LIBOR Loans. Promptly
after receipt of a Notice of Conversion, the Agent shall notify each Lender by
telecopy, or other similar form of transmission, of the proposed Conversion. Subject
to the restrictions specified above, each Notice of Conversion shall be by
telephone (confirmed immediately in writing) or telecopy in the form of a
Notice of Conversion specifying (a) the requested date of such Conversion,
(b) the Type of Loan to be Converted, (c) the portion of such Type of
Loan to be Converted, (d) the Type of Loan such Loan is to be Converted
into and (e) if

 

36

 

such Conversion is into a
LIBOR Loan, the requested duration of the Interest Period of such Loan. Each
Notice of Conversion shall be irrevocable by and binding on the Borrower once
given.

 

Section 2.10. Notes.

 

(a)           Revolving Note. The
Revolving Loans made by each Lender shall, in addition to this Agreement, also
be evidenced by a promissory note of the Borrower substantially in the form of Exhibit G
(each a “Revolving Note”), payable to the order of such Lender in a principal
amount equal to the amount of its Commitment as originally in effect and
otherwise duly completed.

 

(b)           Records. The
date, amount, interest rate, Type and duration of Interest Periods (if
applicable) of each Loan made by each Lender to the Borrower, and each payment
made on account of the principal thereof, shall be recorded by such Lender on
its books and such entries shall be binding on the Borrower, absent manifest
error; provided, however, that the failure of a Lender to make any such record
shall not affect the obligations of the Borrower under any of the Loan
Documents.

 

(c)           Lost, Stolen,
Destroyed or Mutilated Notes. Upon receipt by the Borrower of (i) written
notice from a Lender that a Note of such Lender has been lost, stolen,
destroyed or mutilated, and (ii) (A) in the case of loss, theft or
destruction, an unsecured agreement of indemnity from such Lender in form
reasonably satisfactory to the Borrower, or (B) in the case of mutilation,
upon surrender and cancellation of such Note, the Borrower shall at its own
expense execute and deliver to such Lender a new Note dated the date of such
lost, stolen, destroyed or mutilated Note.

 

Section 2.11. Voluntary Reductions of
the Commitment.

 

The
Borrower shall have the right to terminate or reduce the aggregate unused
amount of the Commitments (for which purpose use of the Commitments shall be
deemed to include the aggregate amount of Letter of Credit Liabilities and the
aggregate principal amount of all outstanding Swingline Loans) at any time and
from time to time without penalty or premium upon not less than 5 Business Days
prior written notice to the Agent of each such termination or reduction, which
notice shall specify the effective date thereof and the amount of any such
reduction and shall be irrevocable once given and effective only upon receipt
by the Agent; provided, however, if the Borrower seeks to reduce the aggregate
amount of the Commitments below $250,000,000, then the Commitments shall all
automatically and permanently be reduced to zero. The Agent will promptly
transmit such notice to each Lender. The Commitments, once terminated or
reduced may not be increased or reinstated.

 

Section 2.12. Extension of Termination
Date.

 

The
Borrower shall have the right, exercisable one time, to extend the Termination
Date by one year. The Borrower may exercise such right only by executing and
delivering to the Agent at least 90 days but not more than 180 days prior to
the current Termination Date, a written request for such extension (an “Extension
Request”). The Agent shall forward to each

 

37

 

Lender a copy of the
Extension Request delivered to the Agent promptly upon receipt thereof. Subject
to satisfaction of the following conditions, the Termination Date shall be
extended for one year: (a) immediately prior to such extension and
immediately after giving effect thereto, (i) no Default or Event of
Default shall exist and (ii) the representations and warranties made or
deemed made by the Borrower and each other Loan Party in the Loan Documents to
which any of them is a party, shall be true and correct on and as of the date
of such extension with the same force and effect as if made on and as of such
date except to the extent that such representations and warranties expressly
relate solely to an earlier date (in which case such representations and
warranties shall have been true and accurate on and as of such earlier date)
and (b) the Borrower shall have paid the Fees payable under Section 3.6.(d).

 

Section 2.13. Expiration or Maturity
Date of Letters of Credit Past Termination Date.

 

If on
the date the Commitments are terminated or reduced to zero (whether
voluntarily, by reason of the occurrence of an Event of Default or otherwise),
there are any Letters of Credit outstanding hereunder, the Borrower shall, on
such date, pay to the Agent an amount of money equal to the Stated Amount of
such Letter(s) of Credit for deposit into the Collateral Account.

 

Section 2.14. Amount Limitations.

 

Notwithstanding
any other term of this Agreement or any other Loan Document, no Lender shall be
required to make a Loan, the Agent shall not be required to issue a Letter of
Credit and no reduction of the Commitments pursuant to Section 2.11. shall
take effect, if immediately after the making of such Loan, the issuance of such
Letter of Credit or such reduction in the Commitments, the aggregate principal
amount of all outstanding Revolving Loans, together with the aggregate
principal amount of all outstanding Swingline Loans and the aggregate amount of
all Letter of Credit Liabilities, would exceed the aggregate amount of the
Commitments at such time.

 

Section 2.15. Increase of Commitments.

 

With
the prior consent of the Agent, such consent not to be unreasonably withheld,
conditioned or delayed, the Borrower shall have the right at any time and from
time to time to request increases in the aggregate amount of the Commitments
(provided that after giving effect to any increases in the Commitments pursuant
to this Section, the aggregate amount of the Commitments may not exceed
$800,000,000) by providing written notice to the Agent, which notice shall be
irrevocable once given and shall be forwarded by the Agent to each Lender;
provided, however, the Borrower shall not have the right to make more than 4
requests for increases in the aggregate amount of the Commitments during the
term of this Agreement. Each such increase in the Commitments must be in an
aggregate minimum amount of $25,000,000 and integral multiples of $5,000,000 in
excess thereof. No Lender shall be required to increase its Commitment and any new
Lender becoming a party to this Agreement in connection with any such requested
increase must be an Eligible Assignee. If a new Lender becomes a party to this
Agreement, or if any existing Lender agrees to increase its Commitment, such
Lender shall on the date it becomes a Lender hereunder (or increases its
Commitment, in the case of an existing Lender) (and as a condition thereto)
purchase from the other Lenders its Commitment Percentage (or in the case of an
existing Lender, increase the amount of its Commitment Percentage), in

 

38

 

each case, as determined
after giving effect to the increase of Commitments, of any outstanding
Revolving Loans, by making available to the Agent for the account of such other
Lenders at the Principal Office, in same day funds, an amount equal to the sum
of (A) the portion of the outstanding principal amount of such Revolving
Loans to be purchased by such Lender plus (B) the aggregate amount of
payments previously made by the other Lenders under Section 2.3.(j) which
have not been repaid plus (C) interest accrued and unpaid to and as of
such date on such portion of the outstanding principal amount of such Revolving
Loans. The Borrower shall pay to the Lenders amounts payable, if any, to such
Lenders under Section 4.4. as a result of the prepayment of any such
Revolving Loans. No increase of the Commitments may be effected under this Section if
(x) a Default or Event of Default shall be in existence on the effective
date of such increase or (y) any representation or warranty made or deemed
made by the Borrower or any other Loan Party in any Loan Document to which any
such Loan Party is a party is not (or would not be) true or correct on the
effective date of such increase and after giving effect thereto (except for
representations or warranties which expressly relate solely to an earlier date).
In connection with any increase in the aggregate amount of the Commitments
pursuant to this subsection, (a) any Lender becoming a party hereto shall
execute such documents and agreements as the Agent may reasonably request and (b) the
Borrower shall make appropriate arrangements so that each new Lender, and any
existing Lender increasing its Commitment, receives a new or replacement Note,
as appropriate, in the amount of such Lender’s Commitment within 5 Business
Days of the effectiveness of the applicable increase in the aggregate amount of
Commitments.

 

ARTICLE III. PAYMENTS, FEES AND OTHER GENERAL
PROVISIONS

 

Section 3.1. Payments.

 

Except
to the extent otherwise provided herein, all payments of principal, interest
and other amounts to be made by the Borrower under this Agreement or any other
Loan Document shall be made in Dollars, in immediately available funds, without
deduction, set-off or counterclaim, to the Agent at its Principal Office, not
later than 2:00 p.m. on the date on which such payment shall become due
(each such payment made after such time on such due date to be deemed to have
been made on the next succeeding Business Day). Subject to Section 10.4.,
the Borrower may, at the time of making each payment under this Agreement or
any Note, specify to the Agent the amounts payable by the Borrower hereunder to
which such payment is to be applied. Each payment received by the Agent for the
account of a Lender under this Agreement or any Note shall be paid to such
Lender at the applicable Lending Office of such Lender no later than 4:00 p.m.
on the date of receipt. If the Agent fails to pay such amount to a Lender as
provided in the previous sentence, the Agent shall pay interest on such amount
until paid at a rate per annum equal to the Federal Funds Rate from time to
time in effect. If the due date of any payment under this Agreement or any
other Loan Document would otherwise fall on a day which is not a Business Day
such date shall be extended to the next succeeding Business Day and interest
shall be payable for the period of such extension.

 

Section 3.2. Pro Rata Treatment.

 

Except
to the extent otherwise provided herein: 
(a) each borrowing from the Lenders under Section 2.1.(a),
2.2.(e) and 2.3.(e) shall be made from the Lenders, each payment of
the

 

39

 

Fees under Section 3.6.(a),
Section 3.6.(b), the first sentence of Section 3.6.(c), and Section 3.6.(d) shall
be made for the account of the Lenders, and each termination or reduction of
the amount of the Commitments under Section 2.11. shall be applied to the
respective Commitments of the Lenders, pro rata according to the amounts of their
respective Commitments; (b) each payment or prepayment of principal of
Revolving Loans by the Borrower shall be made for the account of the Lenders
pro rata in accordance with the respective unpaid principal amounts of the
Revolving Loans held by them, provided that if immediately prior to giving
effect to any such payment in respect of any Revolving Loans the outstanding
principal amount of the Revolving Loans shall not be held by the Lenders pro
rata in accordance with their respective Commitments in effect at the time such
Loans were made, then such payment shall be applied to the Revolving Loans in
such manner as shall result, as nearly as is practicable, in the outstanding
principal amount of the Revolving Loans being held by the Lenders pro rata in
accordance with their respective Commitments; (c) each payment of interest
on Revolving Loans by the Borrower shall be made for the account of the Lenders
pro rata in accordance with the amounts of interest on such Loans then due and
payable to the respective Lenders; (d) the making, Conversion and
Continuation of Revolving Loans of a particular Type (other than Conversions
provided for by Section 4.5.) shall be made pro rata among the Lenders
according to the amounts of their respective Commitments (in the case of making
of Loans) or their respective Loans (in the case of Conversions and
Continuations of Loans) and the then current Interest Period for each Lender’s
portion of each Loan of such Type shall be coterminous; (e) the Lenders’
participation in, and payment obligations in respect of, Letters of Credit
under Section 2.3., shall be pro rata in accordance with their respective
Commitments; and (f) the Lenders’ participation in, and payment
obligations in respect of, Swingline Loans under Section 2.2., shall be
pro rata in accordance with their respective Commitments. All payments of
principal, interest, fees and other amounts in respect of the Swingline Loans
shall be for the account of the Swingline Lender only (except to the extent any
Lender shall have acquired and funded a participating interest in any such
Swingline Loan pursuant to Section 2.2.(e), in which case such payments
shall be pro rata in accordance with such participating interests).

 

Section 3.3. Sharing of Payments, Etc.

 

If a
Lender shall obtain payment of any principal of, or interest on, any Loan made
by it to the Borrower under this Agreement, or shall obtain payment on any
other Obligation owing by the Borrower or a Loan Party through the exercise of
any right of set-off, banker’s lien or counterclaim or similar right or
otherwise or through voluntary prepayments directly to a Lender or other
payments made by the Borrower to a Lender not in accordance with the terms of
this Agreement and such payment should be distributed to the Lenders pro rata
in accordance with Section 3.2. or Section 10.4., as applicable, such
Lender shall promptly purchase from the other Lenders participations in (or, if
and to the extent specified by such Lender, direct interests in) the Loans made
by the other Lenders or other Obligations owed to such other Lenders in such
amounts, and make such other adjustments from time to time as shall be
equitable, to the end that all the Lenders shall share the benefit of such
payment (net of any reasonable expenses which may be incurred by such Lender in
obtaining or preserving such benefit) pro rata in accordance with Section 3.2.
or Section 10.4., as applicable. To such end, all the Lenders shall make
appropriate adjustments among themselves (by the resale of participations sold
or otherwise) if such payment is rescinded or must otherwise be restored. The
Borrower agrees that any Lender

 

40

 

so purchasing a
participation (or direct interest) in the Loans or other Obligations owed to
such other Lenders may exercise all rights of set-off, banker’s lien,
counterclaim or similar rights with respect to such participation as fully as
if such Lender were a direct holder of Loans in the amount of such
participation. Nothing contained herein shall require any Lender to exercise
any such right or shall affect the right of any Lender to exercise, and retain
the benefits of exercising, any such right with respect to any other
indebtedness or obligation of the Borrower.

 

Section 3.4. Several Obligations.

 

No
Lender shall be responsible for the failure of any other Lender to make a Loan
or to perform any other obligation to be made or performed by such other Lender
hereunder, and the failure of any Lender to make a Loan or to perform any other
obligation to be made or performed by it hereunder shall not relieve the
obligation of any other Lender to make any Loan or to perform any other
obligation to be made or performed by such other Lender.

 

Section 3.5. Minimum Amounts.

 

(a)           Borrowings and Conversions.
Except as otherwise provided in Sections 2.2.(e) and 2.3.(e), each
borrowing of Base Rate Loans shall be in an aggregate minimum amount of
$1,000,000 and integral multiples of $100,000 in excess thereof. Each borrowing
and each Conversion of LIBOR Loans shall be in an aggregate minimum amount of
$1,000,000 and integral multiples of $1,000,000 in excess of that amount.

 

(b)           Prepayments. Each
voluntary prepayment of Revolving Loans shall be in an aggregate minimum amount
of $1,000,000 and integral multiples of $500,000 in excess thereof (or, if
less, the aggregate principal amount of Revolving Loans then outstanding).

 

(c)           Reductions of
Commitments. Each reduction of the Commitments under Section 2.11.
shall be in an aggregate minimum amount of $10,000,000 and integral multiples
of $5,000,000 in excess thereof.

 

(d)           Letters of Credit.
The initial Stated Amount of each Letter of Credit shall be at least $100,000.

 

Section 3.6. Fees.

 

(a)           Unused Fee.
During the period from the Effective Date to but excluding the earlier to occur
of (i) the Investment Grade Rating Date and (ii) the Termination
Date, the Borrower agrees to pay to the Agent for the account of the Lenders an
unused facility fee with respect to the average daily difference between the (i) aggregate
amount of the Commitments and (ii) the aggregate principal amount of all
outstanding Revolving Loans plus the aggregate amount of all Letter of Credit
Liabilities (the “Unused Amount”). Such fee shall be computed by multiplying
the Unused Amount with respect to such quarter by the corresponding per annum
rate set forth below:

 

41

 

	
  Unused Amount

  	
   

  	
  Unused Fee

  	
   

  
	
  Greater than or equal
  to 50% of the aggregate amount of Commitments

  	
   

  	
  0.20

  	
  %

  
	
  Less than 50% of the
  aggregate amount of Commitments

  	
   

  	
  0.125

  	
  %

  

 

Such fee shall be payable
in arrears on the last day of each March, June, September or December of
each calendar year. Any such accrued and unpaid fee shall also be payable on
the earlier of (x) the Investment Grade Rating Date and (y) the
Termination Date or any earlier date of termination of the Commitments or
reduction of the Commitments to zero.

 

(b)           Facility Fees. The
Borrower agrees to pay to the Agent for the account of each Lender a facility
fee equal to the average daily amount of the Commitment of such Lender (whether
or not utilized) times the Facility Fee for the period from and including the
Investment Grade Rating Date to but excluding the date such Commitment is
terminated or reduced to zero or the Termination Date, such fee to be paid in
arrears on (i) the last day of March, June, September and December in
each year, (ii) the date of each reduction in the Commitments (but only on
the amount of the reduction) and (iii) on the Termination Date.

 

(c)           Letter of Credit
Fees. The Borrower agrees to pay to the Agent for the account of each
Lender a letter of credit fee at a rate per annum equal to the Applicable
Margin for LIBOR Loans times the daily average Stated Amount of each Letter of
Credit for the period from and including the date of issuance of such Letter of
Credit (x) through and including the date such Letter of Credit expires or
is terminated or (y) to but excluding the date such Letter of Credit is
drawn in full. The fees provided for in the immediately preceding sentence
shall be nonrefundable and payable in arrears on (i) the last day of
March, June, September and December in each year, (ii) the
Termination Date, (iii) the date the Commitments are terminated or reduced
to zero and (iv) thereafter from time to time on demand of the Agent. In
addition, the Borrower shall pay to the Agent for its own account and not the
account of any Lender, an issuance fee in respect of each Letter of Credit
equal to one-eighth of one percent (0.125%) per annum on the initial Stated
Amount of such Letter of Credit for the period from and including the date of
issuance of such Letter of Credit through and including the date such Letter of
Credit is to terminate. The fees provided for in the immediately preceding
sentence shall be nonrefundable and payable upon issuance. The Borrower shall
pay directly to the Agent from time to time on demand all commissions, charges,
costs and expenses in the amounts customarily charged by the Agent from time to
time in like circumstances with respect to the issuance of each Letter of
Credit, drawings, amendments and other transactions relating thereto.

 

(d)           Extension Fee. If
the Borrower exercises its right to extend the Termination Date pursuant to Section 2.12.,
the Borrower agrees to pay to the Agent for the account of each Lender a fee
equal to one-eighth of one percent (0.125%) of the amount of such Lender’s
Commitment (whether or not utilized) at the time of such extension. Such fee
shall be due and payable in full on the date the Agent receives the Extension
Request pursuant to such Section.

 

(e)           Administrative and
Other Fees. The Borrower agrees to pay the administrative and other fees of
the Agent as may be agreed to in writing by the Borrower and the Agent from
time to time.

 

42

 

Section 3.7. Computations.

 

Unless
otherwise expressly set forth herein, any accrued interest on any Loan, any
Fees or any other Obligations due hereunder shall be computed on the basis of a
year of 360 days and the actual number of days elapsed; provided, however, any accrued interest on any Base Rate Loan
shall be computed on the basis of a year of 365 or 366 days, as applicable, and
the actual number of days elapsed.

 

Section 3.8. Usury.

 

In no
event shall the amount of interest due or payable on the Loans or other
Obligations exceed the maximum rate of interest allowed by Applicable Law and,
if any such payment is paid by the Borrower or any other Loan Party or received
by any Lender, then such excess sum shall be credited as a payment of
principal, unless the Borrower shall notify the respective Lender in writing
that the Borrower elects to have such excess sum returned to it forthwith. It
is the express intent of the parties hereto that the Borrower not pay and the
Lenders not receive, directly or indirectly, in any manner whatsoever, interest
in excess of that which may be lawfully paid by the Borrower under Applicable
Law.

 

Section 3.9. Agreement Regarding
Interest and Charges.

 

The
parties hereto hereby agree and stipulate that the only charge imposed upon the
Borrower for the use of money in connection with this Agreement is and shall be
the interest specifically described in Section 2.4.(a)(i) and (ii) and
in Section 2.2.(c). Notwithstanding the foregoing, the parties hereto
further agree and stipulate that all agency fees, syndication fees, facility
fees, closing fees, letter of credit fees, underwriting fees, default charges,
late charges, funding or “breakage” charges, increased cost charges, attorneys’
fees and reimbursement for costs and expenses paid by the Agent or any Lender
to third parties or for damages incurred by the Agent or any Lender, in each
case in connection with the transactions contemplated by this Agreement and the
other Loan Documents, are charges made to compensate the Agent or any such
Lender for underwriting or administrative services and costs or losses
performed or incurred, and to be performed or incurred, by the Agent and the
Lenders in connection with this Agreement and shall under no circumstances be
deemed to be charges for the use of money. All charges other than charges for
the use of money shall be fully earned and nonrefundable when due.

 

Section 3.10. Statements of Account.

 

The
Agent will account to the Borrower monthly with a statement of Loans, Letters
of Credit, accrued interest and Fees, charges and payments made pursuant to
this Agreement and the other Loan Documents, and such account rendered by the
Agent shall be deemed conclusive upon Borrower to the extent the Borrower shall
fail to object to such account in writing within 5 Business Days of the receipt
thereof. The failure of the Agent to deliver such a statement of accounts shall
not relieve or discharge the Borrower from any of its obligations hereunder.

 

43

 

Section 3.11. Defaulting Lenders.

 

(a)           Generally. If
for any reason any Lender (a “Defaulting Lender”) shall fail or refuse to
perform any of its obligations under this Agreement or any other Loan Document
to which it is a party within the time period specified for performance of such
obligation or, if no time period is specified, if such failure or refusal
continues for a period of two Business Days after notice from the Agent, then,
in addition to the rights and remedies that may be available to the Agent or
the Borrower under this Agreement or Applicable Law, such Defaulting Lender’s
right to participate in the administration of the Loans, this Agreement and the
other Loan Documents, including without limitation, any right to vote in
respect of, to consent to or to direct any action or inaction of the Agent or
to be taken into account in the calculation of the Requisite Lenders, shall be
suspended during the pendency of such failure or refusal. If a Lender is a
Defaulting Lender because it has failed to make timely payment to the Agent of
any amount required to be paid to the Agent hereunder (without giving effect to
any notice or cure periods), in addition to other rights and remedies which the
Agent or the Borrower may have under this Agreement or otherwise, the Agent
shall be entitled (i) to collect interest from such Defaulting Lender on
such delinquent payment for the period from the date on which the payment was
due until the date on which the payment is made at the Federal Funds Rate, (ii) to
withhold or setoff and to apply in satisfaction of the defaulted payment and
any related interest, any amounts otherwise payable to such Defaulting Lender
under this Agreement or any other Loan Document and (iii) to bring an
action or suit against such Defaulting Lender in a court of competent
jurisdiction to recover the defaulted amount and any related interest. Any
amounts received by the Agent in respect of a Defaulting Lender’s Loans shall
not be paid to such Defaulting Lender and shall be held uninvested by the Agent
and either applied against the purchase price of such Loans under the following
subsection (b) or paid to such Defaulting Lender upon the Defaulting
Lender’s curing of its default.

 

(b)           Purchase or
Cancellation of Defaulting Lender’s Commitment. The Borrower may request
the Agent to notify the Lenders that a Lender has become a Defaulting Lender. Any
Lender who is not a Defaulting Lender shall have the right, but not the
obligation, in its sole discretion, to acquire all of a Defaulting Lender’s
Commitment. Any Lender desiring to exercise such right shall give written
notice thereof to the Agent and the Borrower no sooner than 2 Business Days and
not later than 5 Business Days after such Defaulting Lender became a Defaulting
Lender. If more than one Lender exercises such right, each such Lender shall
have the right to acquire an amount of such Defaulting Lender’s Commitment in
proportion to its Commitments to the aggregate Commitments of all Lenders
exercising such right. If after such 5th Business Day, the Lenders have not
elected to purchase all of the Commitment of such Defaulting Lender, then the
Borrower may, by giving written notice thereof to the Agent, such Defaulting
Lender and the other Lenders, either (i) demand that such Defaulting
Lender assign its Commitment to an Eligible Assignee subject to and in
accordance with the provisions of Section 12.5. for the purchase price
provided for below or (ii) terminate the Commitment of such Defaulting
Lender, whereupon such Defaulting Lender shall no longer be a party hereto or
have any rights or obligations hereunder or under any of the other Loan
Documents. No party hereto shall have any obligation whatsoever to initiate any
such replacement or to assist in finding an Eligible Assignee. Upon any such
purchase or assignment, the Defaulting Lender’s interest in the Loans and its
rights hereunder (but not its liability in respect thereof or under the Loan
Documents or this Agreement to the extent the same relate to the period prior
to the effective

 

44

 

date of the purchase)
shall terminate on the date of purchase, and the Defaulting Lender shall
promptly execute all documents reasonably requested to surrender and transfer
such interest to the purchaser or assignee thereof, including an appropriate
Assignment and Acceptance Agreement and, notwithstanding Section 12.5.,
shall pay to the Agent an assignment fee in the amount of $3,500. The purchase
price for the Commitment of a Defaulting Lender shall be equal to the amount of
the principal balance of the Loans outstanding and owed by the Borrower to the
Defaulting Lender. Prior to payment of such purchase price to a Defaulting
Lender, the Agent shall apply against such purchase price any amounts retained
by the Agent pursuant to the last sentence of the immediately preceding
subsection (a). The Defaulting Lender shall be entitled to receive amounts
owed to it by the Borrower under the Loan Documents which accrued prior to the
date of the default by the Defaulting Lender, to the extent the same are
received by the Agent from or on behalf of the Borrower. There shall be no
recourse against any Lender or the Agent for the payment of such sums except to
the extent of the receipt of payments from any other party or in respect of the
Loans.

 

Section 3.12. Taxes.

 

(a)           Taxes Generally.
All payments by the Borrower of principal of, and interest on, the Loans and
all other Obligations shall be made free and clear of and without deduction for
any present or future excise, stamp or other taxes, fees, duties, levies,
imposts, charges, deductions, withholdings or other charges of any nature
whatsoever imposed by any taxing authority, but excluding (i) franchise
taxes, (ii) any taxes imposed on or measured by any Lender’s assets, net
income, receipts or branch profits, (iii) any taxes (other than
withholding taxes) with respect to the Agent or a Lender that would not be
imposed but for a connection between the Agent or such Lender and the
jurisdiction imposing such taxes (other than a connection arising solely by
virtue of the activities of the Agent or such Lender pursuant to or in respect
of this Agreement or any other Loan Document), and (iv) any taxes, fees,
duties, levies, imposts, charges, deductions, withholdings or other charges to
the extent imposed as a result of the failure of the Agent or a Lender, as
applicable, to provide and keep current (to the extent legally able) any
certificates, documents or other evidence required to qualify for an exemption
from, or reduced rate of, any such taxes fees, duties, levies, imposts,
charges, deductions, withholdings or other charges or required by the
immediately following subsection (c) to be furnished by the Agent or
such Lender, as applicable (such non-excluded items being collectively called “Taxes”).
If any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any Applicable Law,
then the Borrower will:

 

(i)            pay
directly to the relevant Governmental Authority the full amount required to be
so withheld or deducted;

 

(ii)           promptly
forward to the Agent an official receipt or other documentation satisfactory to
the Agent evidencing such payment to such Governmental Authority; and

 

(iii)          pay to the Agent for its account or the
account of the applicable Lender, as the case may be, such additional amount or
amounts as is necessary to ensure that the net amount actually received by the
Agent or such Lender will equal the full amount that the Agent or such Lender
would have received had no such withholding or deduction been required.

 

45

 

(b)           Tax Indemnification.
If the Borrower fails to pay any Taxes when due to the appropriate Governmental
Authority or fails to remit to the Agent, for its account or the account of the
respective Lender, as the case may be, the required receipts or other required
documentary evidence, the Borrower shall indemnify the Agent and the Lenders
for any incremental Taxes, interest or penalties that may become payable by the
Agent or any Lender as a result of any such failure. For purposes of this
Section, a distribution hereunder by the Agent or any Lender to or for the
account of any Lender shall be deemed a payment by the Borrower.

 

(c)           Tax Forms. Prior
to the date that any Lender or Participant organized under the laws of a
jurisdiction outside the United States of America becomes a party hereto, such
Person shall deliver to the Borrower and the Agent such certificates, documents
or other evidence, as required by the Internal Revenue Code or Treasury
Regulations issued pursuant thereto (including Internal Revenue Service
Forms W-8ECI and W-8BEN, as
applicable, or appropriate successor forms), properly completed, currently
effective and duly executed by such Lender or Participant establishing that
payments to it hereunder and under the Notes are (i) not subject to United
States Federal backup withholding tax and (ii) not subject to United States
Federal withholding tax imposed under the Internal Revenue Code. Each such
Lender or Participant shall, to the extent it may lawfully do so, (x) deliver
further copies of such forms or other appropriate certifications on or before
the date that any such forms expire or become obsolete and after the occurrence
of any event requiring a change in the most recent form delivered to the
Borrower or the Agent and (y) obtain such extensions of the time for
filing, and renew such forms and certifications thereof, as may be reasonably
requested by the Borrower or the Agent. The Borrower shall not be required to
pay any amount pursuant to the last sentence of subsection (a) above to
any Lender or Participant that is organized under the laws of a jurisdiction
outside of the United States of America or the Agent, if it is organized under
the laws of a jurisdiction outside of the United States of America, if such
Lender, Participant or the Agent, as applicable, fails to comply with the
requirements of this subsection. If any such Lender or Participant, to the
extent it may lawfully do so, fails to deliver the above forms or other
documentation, then the Agent may withhold from any payments to be made to such
Lender under any of the Loan Documents such amounts as are required by the
Internal Revenue Code. If any Governmental Authority asserts that the Agent did
not properly withhold or backup withhold, as the case may be, any tax or other
amount from payments made to or for the account of any Lender, such Lender
shall indemnify the Agent therefor, including all penalties and interest, any
taxes imposed by any jurisdiction on the amounts payable to the Agent under
this Section, and costs and expenses (including all reasonable fees and
disbursements of any law firm or other external counsel and the allocated cost
of internal legal services and all disbursements of internal counsel) of the
Agent. The obligation of the Lenders under this Section shall survive the
termination of the Commitments, repayment of all Obligations and the
resignation or replacement of the Agent.

 

ARTICLE IV. YIELD PROTECTION, ETC.

 

Section 4.1. Additional Costs; Capital
Adequacy.

 

(a)           Additional Costs.
The Borrower shall promptly pay to the Agent for the account of a Lender from
time to time such amounts as such Lender may determine to be necessary to
compensate such Lender for any costs incurred by such Lender that it determines
are attributable

 

46

 

to its making or
maintaining of any LIBOR Loans or its obligation to make any LIBOR Loans
hereunder, any reduction in any amount receivable by such Lender under this
Agreement or any of the other Loan Documents in respect of any of such Loans or
such obligation or the maintenance by such Lender of capital in respect of its
Loans or its Commitment (such increases in costs and reductions in amounts
receivable being herein called “Additional Costs”), to the extent any such
Additional Costs result from any Regulatory Change that:  (i) changes the basis of taxation of any
amounts payable to such Lender under this Agreement or any of the other Loan
Documents in respect of any of such Loans or its Commitment (other than taxes,
fees, duties, levies, imposts, charges, deductions, withholdings or other
charges which are excluded from the definition of Taxes pursuant to the first
sentence of Section 3.12.(a)); or (ii) imposes or modifies any
reserve, special deposit or similar requirements (other than Regulation D of
the Board of Governors of the Federal Reserve System or other reserve
requirement to the extent utilized in the determination of Adjusted LIBOR for
such Loan) relating to any extensions of credit or other assets of, or any
deposits with or other liabilities of, such Lender, or any commitment of such
Lender (including, without limitation, the Commitment of such Lender
hereunder); or (iii) has or would have the effect of reducing the rate of
return on capital of such Lender to a level below that which such Lender could
have achieved but for such Regulatory Change (taking into consideration such
Lender’s policies with respect to capital adequacy).

 

(b)           Lender’s Suspension
of LIBOR Loans. Without limiting the effect of the provisions of the
immediately preceding subsection (a), if, by reason of any Regulatory
Change, any Lender either (i) incurs or would incur Additional Costs based
on or measured by the excess above a specified level of the amount of a
category of deposits or other liabilities of such Lender that includes deposits
by reference to which the interest rate on LIBOR Loans is determined as
provided in this Agreement or a category of extensions of credit or other
assets of such Lender that includes LIBOR Loans or (ii) becomes subject to
restrictions on the amount of such a category of liabilities or assets that it
may hold, then, if such Lender so elects by notice to the Borrower (with a copy
to the Agent), the obligation of such Lender to make or Continue, or to Convert
any other Type of Loans into, LIBOR Loans hereunder shall be suspended until
such Regulatory Change ceases to be in effect (in which case the provisions of Section 4.5.
shall apply).

 

(c)           Additional Costs in
Respect of Letters of Credit. Without limiting the obligations of the
Borrower under the preceding subsections of this Section (but without
duplication), if as a result of any Regulatory Change or any risk-based capital
guideline or other requirement heretofore or hereafter issued by any
Governmental Authority there shall be imposed, modified or deemed applicable
any tax, reserve, special deposit, capital adequacy or similar requirement
against or with respect to or measured by reference to Letters of Credit and
the result shall be to increase the cost to the Agent of issuing (or any Lender
of purchasing participations in) or maintaining its obligation hereunder to
issue (or purchase participations in) any Letter of Credit or reduce any amount
receivable by the Agent or any Lender hereunder in respect of any Letter of
Credit, then, upon demand by the Agent or such Lender, the Borrower shall pay
promptly, and in any event within 3 Business Days of demand, to the Agent for
its account or the account of such Lender, as applicable, from time to time as
specified by the Agent or a Lender, such additional amounts as shall be
sufficient to compensate the Agent or such Lender for such increased costs or
reductions in amount.

 

47

 

(d)           Notification and Determination of
Additional Costs.
Each of the Agent and each Lender agrees to notify the Borrower of any event
occurring after the Agreement Date entitling the Agent or such Lender to
compensation under any of the preceding subsections of this Section as
promptly as practicable; provided, however, the failure of the Agent or any
Lender to give such notice shall not release the Borrower from any of its
obligations hereunder (and in the case of a Lender, to the Agent). The Agent or
such Lender agrees to furnish to the Borrower (and in the case of a Lender, to
the Agent) a certificate setting forth the basis and amount of each request by
the Agent or such Lender for compensation under this Section. Absent manifest
error, determinations by the Agent or any Lender of the effect of any
Regulatory Change shall be conclusive, provided that such determinations are
made on a reasonable basis and in good faith.

 

Section 4.2. Suspension of LIBOR Loans.

 

Anything herein to
the contrary notwithstanding, if, on or prior to the determination of any LIBOR
Rate for any Interest Period:

 

(a)           the Agent reasonably determines (which
determination shall be conclusive) that by reason of circumstances affecting
the relevant market, adequate and reasonable means do not exist for
ascertaining Adjusted LIBOR for such Interest Period, or

 

(b)           the Agent reasonably determines (which
determination shall be conclusive) that Adjusted LIBOR will not adequately and
fairly reflect the cost to the Lenders of making or maintaining LIBOR Loans for
such Interest Period;

 

then the Agent shall give
the Borrower and each Lender prompt notice thereof and, so long as such
condition remains in effect, the Lenders shall be under no obligation to, and
shall not, make additional LIBOR Loans, Continue LIBOR Loans or Convert Loans
into LIBOR Loans and the Borrower shall, on the last day of each current
Interest Period for each outstanding LIBOR Loan, either repay such Loan or
Convert such Loan into a Base Rate Loan.

 

Section 4.3. Illegality.

 

Notwithstanding
any other provision of this Agreement, if any Lender shall reasonably determine
(which determination shall be conclusive and binding) that it has become
unlawful for such Lender to honor its obligation to make or maintain LIBOR
Loans hereunder, then such Lender shall promptly notify the Borrower thereof
(with a copy to the Agent) and such Lender’s obligation to make or Continue, or
to Convert Loans of any other Type into, LIBOR Loans shall be suspended until
such time as such Lender may again make and maintain LIBOR Loans (in which case
the provisions of Section 4.5. shall be applicable).

 

Section 4.4. Compensation.

 

The
Borrower shall pay to the Agent for the account of each Lender, upon the
request of such Lender through the Agent, such amount or amounts as shall be
sufficient (in the reasonable opinion of such Lender) to compensate it for any
loss, cost or expense that such Lender reasonably determines is attributable
to:

 

48

 

(a)           any payment or prepayment (whether
mandatory or optional) of a LIBOR Loan, or Conversion of a LIBOR Loan, made by
such Lender for any reason (including, without limitation, acceleration) on a
date other than the last day of the Interest Period for such Loan; or

 

(b)           any failure by the Borrower for any
reason (including, without limitation, the failure of any of the applicable
conditions precedent specified in Article V. to be satisfied) to borrow a
LIBOR Loan from such Lender on the requested date for such borrowing, or to
Convert a Base Rate Loan into a LIBOR Loan or Continue a LIBOR Loan on the
requested date of such Conversion or Continuation.

 

Upon the Borrower’s
request, any Lender requesting compensation under this Section shall
provide the Borrower with a statement setting forth the basis for requesting
such compensation and the method for determining the amount thereof. Absent
manifest error, determinations by any Lender in any such statement shall be
conclusive, provided that such determinations are made on a reasonable basis
and in good faith.

 

Section 4.5. Treatment of Affected Loans.

 

If the
obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base
Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1.(b),
4.2. or 4.3., then such Lender’s LIBOR Loans shall be automatically Converted
into Base Rate Loans on the last day(s) of the then current Interest
Period(s) for LIBOR Loans (or, in the case of a Conversion required by Section 4.1.(b) or
4.3., on such earlier date as such Lender may specify to the Borrower with a
copy to the Agent) and, unless and until such Lender gives notice as provided
below that the circumstances specified in Section 4.1. or 4.3. that gave
rise to such Conversion no longer exist:

 

(a)           to the extent that such Lender’s LIBOR
Loans have been so Converted, all payments and prepayments of principal that
would otherwise be applied to such Lender’s LIBOR Loans shall be applied
instead to its Base Rate Loans; and

 

(b)           all Loans that would otherwise be made or
Continued by such Lender as LIBOR Loans shall be made or Continued instead as
Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be
Converted into LIBOR Loans shall remain as Base Rate Loans.

 

If such Lender gives
notice to the Borrower (with a copy to the Agent) that the circumstances
specified in Section 4.1. or 4.3. that gave rise to the Conversion of such
Lender’s LIBOR Loans pursuant to this Section no longer exist (which such
Lender agrees to do promptly upon such circumstances ceasing to exist) at a
time when LIBOR Loans made by other Lenders are outstanding, then such Lender’s
Base Rate Loans shall be automatically Converted, on the first day(s) of
the next succeeding Interest Period(s) for such outstanding LIBOR Loans,
to the extent necessary so that, after giving effect thereto, all Loans held by
the Lenders holding LIBOR Loans and by such Lender are held pro rata (as to
principal amounts, Types and Interest Periods) in accordance with their
respective Commitments.

 

49

 

Section 4.6. Change of Lending Office.

 

Each
Lender agrees that it will use reasonable efforts to designate an alternate
Lending Office with respect to any of its Loans affected by the matters or
circumstances described in Sections 3.12., 4.1. or 4.3. to reduce the
liability of the Borrower or avoid the results provided thereunder, so long as
such designation is not disadvantageous to such Lender as determined by such
Lender in its sole discretion, except that such Lender shall have no obligation
to designate a Lending Office located in the United States of America.

 

Section 4.7. Assumptions Concerning Funding of
LIBOR Loans.

 

Calculation
of all amounts payable to a Lender under this Article IV. shall be made as
though such Lender had actually funded 
LIBOR Loans through the purchase of deposits in the relevant market
bearing interest at the rate applicable to such LIBOR Loans in an amount equal
to the amount of the LIBOR Loans and having a maturity comparable to the
relevant Interest Period; provided, however, that each Lender may fund each of
its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be
used only for calculation of amounts payable under this Article IV.

 

ARTICLE V. CONDITIONS PRECEDENT

 

Section 5.1. Initial Conditions Precedent.

 

The
obligation of the Lenders to effect or permit the occurrence of the first
Credit Event hereunder, whether as the making of a Loan or the issuance of a
Letter of Credit, is subject to the following conditions precedent:

 

(a)           The Agent shall have received each of the following,
in form and substance satisfactory to the Agent:

 

(i)            Counterparts of this Agreement executed
by each of the parties hereto;

 

(ii)           Revolving Notes executed by the Borrower,
payable to each Lender and complying with the applicable provisions of Section 2.10.
and the Swingline Note executed by the Borrower;

 

(iii)          The Guaranty executed by the Parent and
any Material Subsidiary existing as of the Effective Date;

 

(iv)          An opinion of the general counsel of the
Parent and the other Loan Parties, addressed to the Agent, the Lenders and the
Swingline Lender, addressing the matters set forth in Exhibit H;

 

(v)           An opinion of Alston & Bird,
LLP, counsel to the Agent, addressed to the Agent, the Lenders and the
Swingline Lender, addressing the enforceability of the Loan Documents and such
matters as the Agent shall reasonably request;

 

50

 

(vi)          a certificate of incumbency signed by the
Secretary or Assistant Secretary of the Parent with respect to each of the
officers of the Parent authorized to execute and deliver on behalf of the
Parent and the Borrower the Loan Documents to which the Parent or the Borrower
is a party and to execute and deliver (or make by telephone in the case of
Notices of Conversion or Continuation) on behalf of the Borrower Notices of
Borrowing, Notices of Conversion, Notices of Continuation, Notices of Swingline
Borrowing and requests for Letters of Credit;

 

(vii)         a
certified copy (certified by the Secretary or Assistant Secretary of the
Parent) of all necessary action taken by the Parent to authorize the execution,
delivery and performance of the Loan Documents to which either the Parent or
the Borrower is a party;

 

(viii)        the certificate or articles of
incorporation, articles of organization, certificate of limited partnership,
declaration of trust or other comparable organizational instrument (if any) of
the Parent, the Borrower and each Guarantor, certified as of a recent date by
the Secretary of State of the State of formation of such Person;

 

(ix)           a Certificate of Good Standing or certificate of
similar meaning with respect to the Parent, the Borrower and each Guarantor
(and in the case of a limited partnership, the general partner of such
Guarantor) issued as of a recent date by the Secretary of State of the State of
formation of each such Person and certificates of qualification to transact
business or other comparable certificates issued by each Secretary of State (and
any state department of taxation, as applicable) of each state in which such
Person is required to be so qualified;

 

(x)            a certificate of incumbency signed by the
Secretary or Assistant Secretary (or other individual performing similar
functions) of each Guarantor with respect to each of the officers of such
Person authorized to execute and deliver the Loan Documents to which such
Person is a party;

 

(xi)           copies certified by the Secretary or
Assistant Secretary (or other individual performing similar functions) of the
Parent, the Borrower and each Guarantor of the by-laws of such Person, if a
corporation, the operating agreement, if a limited liability company, the
partnership agreement, if a limited or general partnership, or other comparable
document in the case of any other form of legal entity;

 

(xii)          copies
certified by the Secretary or Assistant Secretary (or other individual
performing similar functions) of each Guarantor of all corporate, partnership,
member or other necessary action taken by each Guarantor to authorize the
execution, delivery and performance of the Loan Documents to which it is a
party;

 

(xiii)         the
Fees then due and payable under Section 3.6., and any other Fees payable
to the Agent, the Titled Agents and the Lenders on or prior to the Effective
Date;

 

51

 

(xiv)        a
Compliance Certificate calculated as of June 30, 2007 giving pro forma
effect to the financing contemplated by this Agreement and the use of the
proceeds of the Loans to be funded on the Effective Date; and

 

(xv)         a statement from the administrative agent
under the Existing Credit Agreement providing information regarding the payment
of all amounts outstanding under the Existing Credit Agreement as of the
Effective Date; and

 

(xvi)        such
other documents, agreements and instruments as the Agent on behalf of the
Lenders may reasonably request; and

 

(b)           In the good faith judgment of the Agent  and the Lenders:

 

(i)            There shall not have occurred or become
known to the Agent  or any of the
Lenders any event, condition, situation or status since the date of the
information contained in the financial and business projections, budgets, pro
forma data and forecasts concerning the Borrower and its Subsidiaries delivered
to the Agent and the Lenders prior to the Agreement Date that has had or could
reasonably be expected to result in a Material Adverse Effect;

 

(ii)           No litigation, action, suit,
investigation or other arbitral, administrative or judicial proceeding shall be
pending or threatened which could reasonably be expected to (1) result in
a Material Adverse Effect or (2) restrain or enjoin, impose materially
burdensome conditions on, or otherwise materially and adversely affect the
ability of the Borrower or any other Loan Party to fulfill its obligations
under the Loan Documents to which it is a party;

 

(iii)          The
Borrower and its Subsidiaries shall have received all approvals, consents and
waivers, and shall have made or given all necessary filings and notices as
shall be required to consummate the transactions contemplated hereby without
the occurrence of any default under, conflict with or violation of (1) any
Applicable Law or (2) any agreement, document or instrument to which the
Borrower or any other Loan Party is a party or by which any of them or their
respective properties is bound, except for such approvals, consents, waivers,
filings and notices the receipt, making or giving of which would not reasonably
be likely to (A) have a Material Adverse Effect, or (B) restrain or
enjoin, impose materially burdensome conditions on, or otherwise materially and
adversely affect the ability of the Borrower or any other Loan Party to fulfill
its obligations under the Loan Documents to which it is a party; and

 

(iv)          There shall not have occurred or exist
any other material disruption of financial or capital markets that could
reasonably be expected to materially and adversely affect the transactions
contemplated by the Loan Documents.

 

Section 5.2. Conditions Precedent to All Loans
and Letters of Credit.

 

The
obligations of the Lenders to make any Loans, of the Agent to issue Letters of
Credit, and of the Swingline Lender to make any Swingline Loan are all subject
to the further condition

 

52

 

precedent that: (a) no
Default or Event of Default shall exist as of the date of the making of such
Loan or date of issuance of such Letter of Credit or would exist immediately
after giving effect thereto; and (b) the representations and warranties
made or deemed made by the Borrower and each other Loan Party in the Loan
Documents to which any of them is a party, shall be true and correct on and as
of the date of the making of such Loan or date of issuance of such Letter of
Credit with the same force and effect as if made on and as of such date except
to the extent that such representations and warranties expressly relate solely
to an earlier date (in which case such representations and warranties shall
have been true and accurate on and as of such earlier date) and except for
changes in factual circumstances specifically and expressly permitted hereunder.
Each Credit Event shall constitute a certification by the Borrower to the
effect set forth in the preceding sentence (both as of the date of the giving
of notice relating to such Credit Event and, unless the Borrower otherwise
notifies the Agent prior to the date of such Credit Event, as of the date of
the occurrence of such Credit Event). In addition, if such Credit Event is the
making of a Loan or the issuance of a Letter of Credit, the Borrower shall be
deemed to have represented to the Agent and the Lenders at the time such Loan
is made or Letter of Credit issued that all conditions to the occurrence of
such Credit Event contained in Article V. have been satisfied.

 

Section 5.3. Conditions as Covenants.

 

If the
Lenders make any Loans, or the Agent issues a Letter of Credit, prior to the
satisfaction of all conditions precedent set forth in Sections 5.1. and
5.2., the Borrower shall nevertheless cause such condition or conditions to be
satisfied within 5 Business Days after the date of the making of such Loans or
the issuance of such Letter of Credit. Unless set forth in writing to the
contrary, the making of its initial Loan by a Lender shall constitute a certification
by such Lender to the Agent and the other Lenders that the Borrower has
satisfied the conditions precedent for initial Loans set forth in
Sections 5.1. and 5.2.

 

ARTICLE VI. REPRESENTATIONS AND WARRANTIES

 

Section 6.1. Representations and Warranties.

 

In
order to induce the Agent and each Lender to enter into this Agreement and to
make Loans and issue Letters of Credit, the Parent and the Borrower represent
and warrant to the Agent and each Lender as follows:

 

(a)           Organization; Power; Qualification. Each of the Parent, its Subsidiaries,
the Borrower and the other Loan Parties is a corporation, partnership or other
legal entity, duly organized or formed, validly existing and in good standing
under the jurisdiction of its incorporation or formation, has the power and
authority to own or lease its respective properties and to carry on its
respective business as now being and hereafter proposed to be conducted and is
duly qualified and is in good standing as a foreign corporation, partnership or
other legal entity, and authorized to do business, in each jurisdiction in
which the character of its properties or the nature of its business requires
such qualification or authorization and where the failure to be so qualified or
authorized could reasonably be expected to have, in each instance, a Material
Adverse Effect.

 

53

 

(b)           Ownership Structure. As of the Agreement Date, Part I of
Schedule 6.1.(b) is a complete and correct list of all Subsidiaries
of the Parent setting forth for each such Subsidiary, (i) the jurisdiction
of organization of such Subsidiary, (ii) each Person holding any Equity
Interests in such Subsidiary, (iii) the nature of the Equity Interests
held by each such Person, (iv) the percentage of ownership of such
Subsidiary represented by such Equity Interests and (v) whether such
Subsidiary is a Material Subsidiary. Except as disclosed in such Schedule, as
of the Agreement Date (i) each of the Parent and its Subsidiaries owns,
free and clear of all Liens (other than Permitted Liens), and has the
unencumbered right to vote, all outstanding Equity Interests in each Person
shown to be held by it on such Schedule, (ii) all of the issued and
outstanding capital stock of each such Person organized as a corporation is
validly issued, fully paid and nonassessable and (iii) there are no
outstanding subscriptions, options, warrants, commitments, preemptive rights or
agreements of any kind (including, without limitation, any stockholders’ or
voting trust agreements) for the issuance, sale, registration or voting of, or
outstanding securities convertible into, any additional shares of capital stock
of any class, or partnership or other ownership interests of any type in, any
such Person. As of the Agreement Date Part II of Schedule 6.1.(b) correctly
sets forth all Unconsolidated Affiliates of the Parent, including the correct
legal name of such Person, the type of legal entity which each such Person is,
and all Equity Interests in such Person held directly or indirectly by the
Parent.

 

(c)           Authorization of Agreement, Etc. The Borrower has the right and power,
and has taken all necessary action to authorize it, to borrow and obtain other
extensions of credit hereunder. The Parent, the Borrower and each other Loan Party
has the right and power, and has taken all necessary action to authorize it, to
execute, deliver and perform each of the Loan Documents to which it is a party
in accordance with their respective terms and to consummate the transactions
contemplated hereby and thereby. The Loan Documents to which the Borrower or
any other Loan Party is a party have been duly executed and delivered by the
duly authorized officers of such Person and each is a legal, valid and binding
obligation of such Person enforceable against such Person in accordance with
its respective terms except as the same may be limited by bankruptcy,
insolvency, and other similar laws affecting the rights of creditors generally
and the availability of equitable remedies for the enforcement of certain
obligations (other than the payment of principal) contained herein or therein
and as may be limited by equitable principles generally.

 

(d)           Compliance of Loan Documents with Laws, Etc. The execution, delivery and performance
of this Agreement, the Notes and the other Loan Documents to which the Borrower
or any other Loan Party is a party in accordance with their respective terms
and the borrowings and other extensions of credit hereunder do not and will
not, by the passage of time, the giving of notice, or both:  (i) require any Governmental Approval or
violate any Applicable Law (including all Environmental Laws) relating to the
Borrower or any other Loan Party; (ii) conflict with, result in a breach
of or constitute a default under the organizational documents of the Borrower
or any other Loan Party, or any indenture, agreement or other instrument to
which the Borrower or any other Loan Party is a party or by which it or any of
its respective properties may be bound; or (iii) result in or require the
creation or imposition of any Lien upon or with respect to any property now
owned or hereafter acquired by the Borrower or any other Loan Party.

 

54

 

(e)           Compliance with Law; Governmental Approvals. The Parent, the Borrower, each
Subsidiary and each other Loan Party is in compliance with each Governmental
Approval applicable to it and in compliance with all other Applicable Laws
(including without limitation, Environmental Laws) relating to the Parent, the
Borrower, a Subsidiary or such other Loan Party except for noncompliances
which, and Governmental Approvals the failure to possess which, could not,
individually or in the aggregate, reasonably be expected to cause a Default or
Event of Default or have a Material Adverse Effect.

 

(f)            Title to Properties; Liens. As of the Agreement Date, Part I
of Schedule 6.1.(f) sets forth all of the real property owned or
leased by the Parent, the Borrower, each other Loan Party and each other
Subsidiary. Each such Person has good, marketable and legal title to, or a
valid leasehold interest in, its respective assets. As of the Agreement Date,
there are no Liens against any assets of the Parent, the Borrower, any
Subsidiary or any other Loan Party except for Permitted Liens, including,
without limitation, those Liens in existence as of the Agreement Date and set
forth in Part II of Schedule 6.1.(f).

 

(g)           Existing Indebtedness. Schedule 6.1.(g) is, as of August 30,
2007, a complete and correct listing of all Indebtedness of the Parent and its
Subsidiaries, including without limitation, Guarantees of the Parent and its
Subsidiaries, and indicating whether such Indebtedness is Secured Indebtedness
or Unsecured Indebtedness. During the period from such date to the Agreement
Date, neither the Parent nor any Subsidiary has incurred any Indebtedness in
excess of $25,000,000 in aggregate principal amount. The Parent and its
Subsidiaries have performed and are in compliance with all of the terms of such
Indebtedness and all instruments and agreements relating thereto, and no
default or event of default, or event or condition which with the giving of
notice, the lapse of time, or both, would constitute such a default or event of
default, exists with respect to any such Indebtedness.

 

(h)           Material Contracts. Schedule 6.1.(h) is, as of the Agreement
Date, a true, correct and complete listing of all Material Contracts. Each of
the Parent, its Subsidiaries and the other Loan Parties that is a party to any
Material Contract has performed and is in compliance with all of the terms of
such Material Contract, and no default or event of default, or event or
condition which with the giving of notice, the lapse of time, or both, would
constitute such a default or event of default, exists with respect to any such
Material Contract.

 

(i)            Litigation. Except as set forth on Schedule 6.1.(i), there
are no actions, suits, investigations or proceedings pending (nor, to the
knowledge of the Parent or the Borrower, are there any actions, suits or
proceedings threatened, nor to the knowledge of the Parent or the Borrower is
there any basis therefor) against or in any other way relating adversely to or
affecting the Parent, the Borrower, any Subsidiary or any other Loan Party or
any of its respective property in any court or before any arbitrator of any
kind or before or by any other Governmental Authority which could reasonably be
expected to have a Material Adverse Effect. There are no strikes, slow downs,
work stoppages or walkouts or other labor disputes in progress or
threatened relating to the Parent, the Borrower, any Subsidiary or any other
Loan Party which could reasonably be expected to have a Material Adverse
Effect.

 

55

 

(j)            Taxes. All federal, state and other tax returns of the
Parent, the Borrower, any Subsidiary or any other Loan Party required by
Applicable Law to be filed have been duly filed, and all federal, state and
other taxes, assessments and other governmental charges or levies upon the
Parent, the Borrower, any Subsidiary and each other Loan Party and its
respective properties, income, profits and assets which are due and payable
have been paid, except any such nonpayment which is at the time permitted under
Section 7.6. As of the Agreement Date, none of the United States income
tax returns of the Parent, the Borrower, its Subsidiaries or any other Loan
Party is under audit. All charges, accruals and reserves on the books of the
Parent, the Borrower and each of its Subsidiaries and each other Loan Party in
respect of any taxes or other governmental charges are in accordance with GAAP.

 

(k)           Financial Statements. The Parent and the Borrower have furnished to each
Lender copies of (i) the audited consolidated balance sheet of the Parent
and its consolidated Subsidiaries for the fiscal year ending December 31,
2006, and the related audited consolidated statements of operations, cash flows
and shareholders’ equity for the fiscal year ending on such dates, with the
opinion thereon of PricewaterhouseCoopers LLP, and (ii) the unaudited
consolidated balance sheet of the Parent and its consolidated Subsidiaries for
the fiscal quarter ending June 30, 2007, and the related unaudited
consolidated statements of operations, cash flows and shareholders’ equity of
the Parent and its consolidated Subsidiaries for the fiscal quarter ending on
such date. Such financial statements (including in each case related schedules
and notes) are complete and correct and present fairly, in accordance with GAAP
consistently applied throughout the periods involved, the consolidated
financial position of the Parent and its consolidated Subsidiaries as at their
respective dates and the results of operations and the cash flow for such
periods (subject, as to interim statements, to changes resulting from normal
year-end audit adjustments). Neither the Parent nor any of its Subsidiaries has
on the Agreement Date any material contingent liabilities, liabilities,
liabilities for taxes, unusual or long-term commitments or unrealized or
forward anticipated losses from any unfavorable commitments, except as referred
to or reflected or provided for in said financial statements.

 

(l)            No Material Adverse Change. Since December 31, 2006, there has
been no material adverse change in the business, assets, liabilities, financial
condition, results of operations, business or prospects of the Parent and its
Subsidiaries taken as a whole. Each of the Parent, its Subsidiaries and the
other Loan Parties is Solvent.

 

(m)          ERISA. Each member of the ERISA Group is in compliance with
its obligations under the minimum funding standards of ERISA and the Internal
Revenue Code with respect to each Plan and is in compliance with the presently
applicable provisions of ERISA and the Internal Revenue Code with respect to each
Plan, except in each case for noncompliances which could not reasonably be
expected to have a Material Adverse Effect. As of the Agreement Date, no member
of the ERISA Group has (i) sought a waiver of the minimum funding standard
under Section 412 of the Internal Revenue Code in respect of any Plan, (ii) failed
to make any contribution or payment to any Plan or Multiemployer Plan or in
respect of any Benefit Arrangement, or made any amendment to any Plan or
Benefit Arrangement, which has resulted or could result in the imposition of a
Lien or the posting of a bond or other security under ERISA or the Internal
Revenue Code or (iii) incurred any liability under Title IV of ERISA other
than a liability to the PBGC for premiums under Section 4007 of ERISA.

 

56

 

(n)           Not Plan Assets; No Prohibited Transaction. None of the assets of the Parent, the
Borrower, any Subsidiary or any other Loan Party constitute “plan assets”
within the meaning of ERISA, the Internal Revenue Code and the respective
regulations promulgated thereunder. The execution, delivery and performance of
this Agreement and the other Loan Documents, and the borrowing and repayment of
amounts hereunder, do not and will not constitute “prohibited transactions”
under ERISA or the Internal Revenue Code.

 

(o)           Absence of Defaults. Neither the Parent, the Borrower, any Subsidiary nor
any other Loan Party is in default under its articles of incorporation, bylaws,
partnership agreement or other similar organizational documents, and no event
has occurred, which has not been remedied, cured or waived, which, in any such
case:  (i) constitutes a Default or
an Event of Default; or (ii) constitutes, or which with the passage of
time, the giving of notice, a determination of materiality, the satisfaction of
any condition, or any combination of the foregoing, would constitute, a default
or event of default by the Parent, the Borrower, any Subsidiary or any other
Loan Party under any agreement (other than this Agreement) or judgment, decree
or order to which the Parent, the Borrower or any Subsidiary or other Loan
Party is a party or by which the Parent, the Borrower or any Subsidiary or
other Loan Party or any of their respective properties may be bound where such
default or event of default could, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

(p)           Environmental Laws. Each of the Parent, the Borrower, the Subsidiaries
and the other Loan Parties has obtained all Governmental Approvals which are
required under Environmental Laws and is in compliance with all terms and
conditions of such Governmental Approvals which the failure to obtain or to
comply with could reasonably be expected to have a Material Adverse Effect. Except
for any of the following matters that could not be reasonably expected to have
a Material Adverse Effect, (i) neither the Parent nor the Borrower is
aware of, and has not received notice of, any past, present, or future events,
conditions, circumstances, activities, practices, incidents, actions, or plans
which, with respect to the Parent or the Borrower, the Subsidiaries and each
other Loan Party, may interfere with or prevent compliance or continued
compliance with Environmental Laws, or may give rise to any common-law or legal
liability, or otherwise form the basis of any claim, action, demand, suit,
proceeding, hearing, study, or investigation, based on or related to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport, or handling or the emission, discharge, release or threatened
release into the environment, of any pollutant, contaminant, chemical, or
industrial, toxic, or other Hazardous Material; and (ii) there is no
civil, criminal, or administrative action, suit, demand, claim, hearing,
notice, or demand letter, notice of violation, investigation, or proceeding
pending or, to the Parent’s and the Borrower’s knowledge after due inquiry,
threatened, against the Parent, the Borrower, the Subsidiaries and each other
Loan Party relating in any way to Environmental Laws.

 

(q)           Investment Company; Etc. Neither the Parent nor the Borrower nor any
Subsidiary nor any other Loan Party is (i) an “investment company” or a
company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended or (ii) subject to any other
Applicable Law which purports to regulate or restrict its

 

57

 

ability to borrow money
or to consummate the transactions contemplated by this Agreement or to perform
its obligations under any Loan Document to which it is a party.

 

(r)            Margin Stock. Neither the Parent nor the Borrower nor any
Subsidiary nor any other Loan Party is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose,
whether immediate, incidental or ultimate, of buying or carrying “margin stock”
within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System.

 

(s)           Affiliate Transactions. Except as permitted by Section 9.9., neither
the Parent nor the Borrower nor any Subsidiary nor any other Loan Party is a
party to or bound by any agreement or arrangement (whether oral or written) to
which any Affiliate of the Parent, the Borrower, any Subsidiary or any other
Loan Party is a party.

 

(t)            Intellectual Property. Each of the Parent, the Borrower, each other Loan
Party and each other Subsidiary owns or has the right to use, under valid
license agreements or otherwise, all material patents, licenses, franchises,
trademarks, trademark rights, trade names, trade name rights, trade secrets and
copyrights (collectively, “Intellectual Property”) necessary to the conduct of
its businesses as now conducted and as contemplated by the Loan Documents,
without known conflict with any patent, license, franchise, trademark, trade
secret, trade name, copyright, or other proprietary right of any other Person. The
Parent, the Borrower, each other Loan Party and each other Subsidiary have
taken all such steps as they deem reasonably necessary to protect their
respective rights under and with respect to such Intellectual Property. No
material claim has been asserted by any Person with respect to the use of any
Intellectual Property by the Parent, the Borrower, any other Loan Party or any
other Subsidiary, or challenging or questioning the validity or effectiveness
of any Intellectual Property. The use of such Intellectual Property by the
Parent, the Borrower, the Subsidiaries and the other Loan Parties, does not
infringe on the rights of any Person, subject to such claims and infringements
as do not, in the aggregate, give rise to any liabilities on the part of the
Parent, the Borrower, any other Loan Party or any other Subsidiary that could
reasonably be expected to have a Material Adverse Effect.

 

(u)           Business. As of the Agreement Date, the Parent and its
Subsidiaries are engaged in the business of owning, managing, leasing,
acquiring and developing real properties located in the United States of
America, together with other business activities incidental thereto.

 

(v)           Broker’s Fees. No broker’s or finder’s fee, commission or similar
compensation will be payable with respect to the transactions contemplated
hereby. No other similar fees or commissions will be payable by any Loan Party
for any other services rendered to the Parent or any of its Subsidiaries
ancillary to the transactions contemplated hereby.

 

(w)          Accuracy and Completeness of Information. No written information, report or other
papers or data (excluding financial projections and other forward looking
statements) furnished to the Agent or any Lender by, on behalf of, or at the
direction of, the Parent, the Borrower, any Subsidiary or any other Loan Party
in connection with or relating in any way to this Agreement, contained any
untrue statement of a fact material to the creditworthiness of the

 

58

 

Parent, the Borrower, any
Subsidiary or any other Loan Party or omitted to state a material fact
necessary in order to make such statements contained therein, in light of the
circumstances under which they were made, not misleading. All financial
statements furnished to the Agent or any Lender by, on behalf of, or at the
direction of, the Parent, the Borrower, any Subsidiary or any other Loan Party
in connection with or relating in any way to this Agreement, present fairly, in
accordance with GAAP consistently applied throughout the periods involved, the
financial position of the Persons involved as at the date thereof and the
results of operations for such periods. All financial projections and other
forward looking statements prepared by or on behalf of the Parent, the
Borrower, any Subsidiary or any other Loan Party that have been or may
hereafter be made available to the Agent or any Lender were or will be prepared
in good faith based on reasonable assumptions. As of the Effective Date, no
fact is known to the Parent or the Borrower which has had, or may in the future
have (so far as the Parent or the Borrower can reasonably foresee), a Material
Adverse Effect which has not been set forth in the financial statements
referred to in Section 6.1.(k) or in such information, reports or
other papers or data or otherwise disclosed in writing to the Agent and the
Lenders.

 

(x)            REIT Status. The Parent qualifies as a REIT and is in compliance
with all requirements and conditions imposed under the Internal Revenue Code to
allow the Parent to maintain its status as a REIT.

 

(y)           Properties. As of the Agreement Date, Schedule 6.1.(y) is
a correct and complete list of all Properties included in the calculation of
Unencumbered Asset Value. Each of the assets included by the Borrower in
calculations of Unencumbered Asset Value satisfies all of the requirements
contained in the definitions of “Wholly Owned Property”, “Controlled Property”
or “Non-Controlled Property”, as applicable, and “Eligible Unencumbered
Property”.

 

(z)            Foreign Assets Control. To the best of the Borrower’s knowledge after due
inquiry, the Borrower and each Guarantor are not Persons with whom the Agent
and the Lenders are restricted from doing business under the regulations of
OFAC (including, Sanctioned Persons) or under any statute, executive order
(including, the September 24, 2001 Executive Order Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism), or other governmental action and is not engaged in any
dealings or transactions or otherwise be associated with such Persons.

 

Section 6.2. Survival of Representations and
Warranties, Etc.

 

All
statements contained in any certificate, financial statement or other
instrument delivered by or on behalf of the Parent, the Borrower, any
Subsidiary or any other Loan Party to the Agent or any Lender pursuant to or in
connection with this Agreement or any of the other Loan Documents (including,
but not limited to, any such statement made in or in connection with any
amendment thereto or any statement contained in any certificate, financial
statement or other instrument delivered by or on behalf of the Parent or the
Borrower prior to the Agreement Date and delivered to the Agent or any Lender
in connection with the underwriting or closing of the transactions contemplated
hereby) shall constitute representations and warranties made by the Borrower
and the Parent in favor of the Agent or any of the Lenders under this Agreement.
All representations and warranties made under this Agreement and the other Loan
Documents shall be deemed to be made at and as of the Agreement Date, the
Effective Date, the date on which

 

59

 

any extension of the
Termination Date is effectuated pursuant to Section 2.12. and the date of
the occurrence of any Credit Event, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties shall have been true and
accurate on and as of such earlier date) and except for changes in factual
circumstances not prohibited hereunder. All such representations and warranties
shall survive the effectiveness of this Agreement, the execution and delivery
of the Loan Documents and the making of the Loans and the issuance of the
Letters of Credit.

 

ARTICLE VII. AFFIRMATIVE COVENANTS

 

For so
long as this Agreement is in effect, unless the Requisite Lenders (or, if
required pursuant to Section 12.6., all of the Lenders) shall otherwise
consent in the manner provided for in Section 12.6., the Parent and the
Borrower shall comply with the following covenants:

 

Section 7.1. Preservation of Existence and
Similar Matters.

 

Except
as otherwise permitted under Section 9.5., the Parent and the Borrower
shall, and shall cause each Subsidiary and each other Loan Party to, preserve
and maintain its respective existence, rights, franchises, licenses and
privileges in the jurisdiction of its incorporation or formation and qualify
and remain qualified and authorized to do business in each jurisdiction in
which the character of its properties or the nature of its business requires
such qualification and authorization and where the failure to be so authorized
and qualified could reasonably be expected to have a Material Adverse Effect.

 

Section 7.2. Compliance with Applicable Law and
Material Contracts.

 

The
Parent and the Borrower shall, and shall cause each Subsidiary and each other
Loan Party to, comply with (a) all Applicable Laws, including the
obtaining of all Governmental Approvals, the failure with which to comply could
reasonably be expected to have a Material Adverse Effect, and (b) all
terms and conditions of all Material Contracts to which it is a party.

 

Section 7.3. Maintenance of Property.

 

In
addition to the requirements of any of the other Loan Documents, the Parent and
the Borrower shall, and shall cause each Subsidiary and other Loan Party to, (a) protect
and preserve all of its material properties, including, but not limited to, all
Intellectual Property, and maintain in good repair, working order and condition
all tangible properties, ordinary wear and tear excepted, and (b)  make or
cause to be made all needed and appropriate repairs, renewals, replacements and
additions to such properties, so that the business carried on in connection
therewith may be properly and advantageously conducted at all times.

 

Section 7.4. Conduct of Business.

 

The
Parent and the Borrower shall, and shall cause their Subsidiaries and the other
Loan Parties to carry on, their respective businesses as described in Section 6.1.(u).

 

60

 

Section 7.5. Insurance.

 

In
addition to the requirements of any of the other Loan Documents, the Parent and
the Borrower shall, and shall cause each Subsidiary and other Loan Party to,
maintain insurance (on a replacement cost basis) with financially sound and
reputable insurance companies against such risks and in such amounts as is
customarily maintained by Persons engaged in similar businesses or as may be
required by Applicable Law, and from time to time deliver to the Agent upon its
request a detailed list, together with copies of all policies of the insurance
then in effect, stating the names of the insurance companies, the amounts and
rates of the insurance, the dates of the expiration thereof and the properties
and risks covered thereby.

 

Section 7.6. Payment of Taxes and Claims.

 

The
Parent and the Borrower shall, and shall cause each Subsidiary and other Loan
Party to, pay and discharge when due (a) all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
upon any properties belonging to it, and (b) all lawful claims of
materialmen, mechanics, carriers, warehousemen and landlords for labor,
materials, supplies and rentals which, if unpaid, might become a Lien on any
properties of such Person; provided, however, that this Section shall not
require the payment or discharge of any such tax, assessment, charge, levy or
claim which is being contested in good faith by appropriate proceedings which
operate to suspend the collection thereof and for which adequate reserves have
been established on the books of the Parent, the Borrower, such Subsidiary or
such other Loan Party, as applicable, in accordance with GAAP.

 

Section 7.7. Visits and Inspections.

 

The
Parent and the Borrower shall, and shall cause each Subsidiary and other Loan
Party to, permit representatives or agents of any Lender or the Agent, from
time to time after reasonable prior notice if no Event of Default shall be in
existence, as often as may be reasonably requested, but only during normal
business hours and at the expense of such Lender or the Agent (unless a Default
or Event of Default shall exist, in which case the exercise by the Agent or
such Lender of its rights under this Section shall be at the expense of
the Borrower), as the case may be, to: (a) visit and inspect all
properties of the Parent, the Borrower or such Subsidiary or other Loan Party
to the extent any such right to visit or inspect is within the control of such
Person; (b) inspect and make extracts from their respective books and
records, including but not limited to management letters prepared by
independent accountants; and (c) discuss with its officers and employees,
and its independent accountants, its business, properties, condition (financial
or otherwise), results of operations and performance. If requested by the
Agent, the Parent shall execute an authorization letter addressed to its
accountants authorizing the Agent or any Lender to discuss the financial
affairs of the Parent and any Subsidiary or any other Loan Party with its
accountants.

 

Section 7.8. Use of Proceeds; Letters of Credit.

 

The
Borrower shall use the proceeds of the Loans and the Letters of Credit for
acquisitions, development and other general corporate purposes only. No part of
the proceeds of any Loan or Letter of Credit will be used (a) for the
purpose of buying or carrying “margin

 

61

 

stock” within the meaning
of Regulation U of the Board of Governors of the Federal Reserve System or
to extend credit to others for the purpose of purchasing or carrying any such
margin stock or (b) to fund any operations in, finance any investments or
activities in, or make any payments to, a Sanctioned Person or Sanctioned
Entity.

 

Section 7.9. Environmental Matters.

 

The
Parent shall, and shall cause all of its Subsidiaries and the other Loan
Parties to, comply with all Environmental Laws the failure with which to comply
could reasonably be expected to have a Material Adverse Effect. If the Parent,
the Borrower, any Subsidiary or any other Loan Party shall (a) receive
notice that any violation of any Environmental Law may have been committed or
is about to be committed by such Person, (b) receive notice that any
administrative or judicial complaint or order has been filed or is about to be
filed against the Parent, the Borrower, any Subsidiary or any other Loan Party
alleging violations of any Environmental Law or requiring the Parent, the
Borrower, any Subsidiary or any other Loan Party to take any action in
connection with the release of Hazardous Materials or (c) receive any
notice from a Governmental Authority or private party alleging that the Parent,
the Borrower, any Subsidiary or any other Loan Party may be liable or
responsible for costs associated with a response to or cleanup of a release of
Hazardous Materials or any damages caused thereby, and such notices,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, the Borrower shall provide the Agent with a copy of
such notice promptly, and in any event within 10 Business Days, after the
receipt thereof by the Parent, the Borrower, any Subsidiary or any other Loan
Party. The Parent shall, and shall cause its Subsidiaries and the other Loan
Parties to, take promptly all actions necessary to prevent the imposition of
any Liens on any of their respective properties arising out of or related to
any Environmental Laws.

 

Section 7.10. Books and Records.

 

The
Parent shall, and shall cause each of its Subsidiaries and the other Loan
Parties to, maintain books and records pertaining to its respective business
operations in such detail, form and scope as is consistent with good business
practice and in accordance with GAAP.

 

Section 7.11. Further Assurances.

 

The
Parent and the Borrower shall, at the Borrower’s cost and expense and upon
request of the Agent, execute and deliver or cause to be executed and
delivered, to the Agent such further instruments, documents and certificates,
and do and cause to be done such further acts that may be reasonably necessary
or advisable in the reasonable opinion of the Agent to carry out more
effectively the provisions and purposes of this Agreement and the other Loan
Documents.

 

Section 7.12. Guarantors.

 

(a)           Inclusion of Eligible Unencumbered Properties Owned by
Material Subsidiaries. An Eligible Unencumbered Property owned or leased by any Subsidiary
that becomes a Material Subsidiary after the Effective Date shall be included
in determinations of Unencumbered Adjusted NOI and Unencumbered Asset Value
only if the Borrower delivers to the Agent an Accession Agreement executed by
such Material Subsidiary. In addition, within 30 days of the

 

62

 

delivery of such
Accession Agreement, the Borrower shall deliver the items that would have been
delivered under Sections 5.1.(iv), (v), (ix) through (xii) and (xvi)
with respect to such Material Subsidiary if such Material Subsidiary had been a
Guarantor on the Effective Date, and if the Borrower fails to deliver such
items by the date required, then such Eligible Unencumbered Property shall be
excluded in determinations of Unencumbered Adjusted NOI and Unencumbered Asset
Value until such items have been delivered.

 

(b)           Release of a Guarantor. The Borrower may request in writing that the Agent
release, and upon receipt of such request the Agent shall release, a Guarantor
(other than the Parent) from the Guaranty so long as: (i) such Guarantor
has ceased to be, or simultaneously with its release from the Guaranty will
cease to be, a Material Subsidiary; (ii) no Default or Event of Default
shall then be in existence or would occur as a result of such release; and (iii) the
Agent shall have received such written request at least 10 Business Days (or
such shorter period as may be acceptable to the Agent) prior to the requested
date of release. Delivery by the Borrower to the Agent of any such request
shall constitute a representation by the Borrower that the matters set forth in
the preceding sentence (both as of the date of the giving of such request and
as of the date of the effectiveness of such request) are true and correct with
respect to such request.

 

Section 7.13. REIT Status.

 

The
Parent shall at all times maintain its status as a REIT.

 

Section 7.14. Exchange Listing.

 

The Parent shall
maintain at least one class of common shares of the Parent having trading
privileges on the New York Stock Exchange or the American Stock Exchange or
which is the subject of price quotations in the over-the-counter market as
reported by the National Association of Securities Dealers Automated Quotation
System.

 

ARTICLE VIII. INFORMATION

 

For so
long as this Agreement is in effect, unless the Requisite Lenders (or, if
required pursuant to Section 12.6., all of the Lenders) shall otherwise
consent in the manner set forth in Section 12.6., the Borrower and the
Parent shall furnish to each Lender (or to the Agent if so provided below) at
its Lending Office:

 

Section 8.1. Quarterly Financial Statements.

 

As soon as available
and in any event within 10 days after the same is required to be filed with the
Securities and Exchange Commission (but in no event later than 55 days after
the end of each of the first, second and third fiscal quarters of the Parent),
the unaudited consolidated balance sheet of the Parent and its Subsidiaries as
at the end of such period and the related unaudited consolidated statements of
income, shareholders’ equity and cash flows of the Parent and its Subsidiaries
for such period, setting forth in each case in comparative form the figures as
of the end of and for the corresponding periods of the previous fiscal year,
all of which shall be certified by the chief financial officer or controller of
the Parent, in his or her opinion, to present

 

63

 

fairly, in accordance with GAAP and in all material respects, the
consolidated financial position of the Parent and its Subsidiaries as at the
date thereof and the results of operations for such period (subject to normal
year-end audit adjustments).

 

Section 8.2.        Year-End
Statements.

 

As soon as available and in any event within 10 days
after the same is required to be filed with the Securities and Exchange
Commission (but in no event later than 100 days after the end of each fiscal
year of the Parent), the audited consolidated balance sheet of the Parent and
its Subsidiaries as at the end of such fiscal year and the related audited
consolidated statements of income, shareholders’ equity and cash flows of the
Parent and its Subsidiaries for such fiscal year, setting forth in comparative
form the figures as at the end of and for the previous fiscal year, all of
which shall be certified by (a) the chief financial officer or controller
of the Parent, in his or her opinion, to present fairly, in accordance with GAAP,
the consolidated financial position of the Parent and its Subsidiaries as at
the date thereof and the results of operations for such period and (b) independent
certified public accountants of recognized national standing, whose certificate
shall be unqualified.

 

Section 8.3.        Compliance
Certificate.

 

At the time financial statements are furnished
pursuant to Sections 8.1. and 8.2., and within 5 Business Days of the
Agent’s request with respect to any other fiscal period, a certificate
substantially in the form of Exhibit I (a “Compliance Certificate”)
executed by the chief financial officer or treasurer of each of the Parent and
the Borrower: (a) setting forth in reasonable detail as at the end of such
quarterly accounting period, fiscal year, or other fiscal period, as the case
may be, the calculations required to establish whether or not the Parent and
the Borrower were in compliance with the covenants contained in
Sections 9.1. and (b) stating that, to the best of such Person’s
knowledge, information and belief after due inquiry, no Default or Event of
Default exists, or, if such is not the case, specifying such Default or Event
of Default and its nature, when it occurred, whether it is continuing and the
steps being taken by the Borrower with respect to such event, condition or
failure.  Together with each Compliance
Certificate delivered in connection with quarterly or annual financial
statements, the Borrower and the Parent shall deliver a report, in form and detail
reasonably satisfactory to the Agent, setting forth a Statement of Funds From
Operations for the fiscal period then ending.

 

Section 8.4.        Other
Information.

 

(a)                                  Management Reports. 
Promptly upon receipt thereof, copies of all management reports, if any,
submitted to the Parent or its respective Boards of Trustees by its independent
public accountants;

 

(b)                                 Securities Filings. 
Within 5 Business Days of the filing thereof, copies of all
registration statements (excluding the exhibits thereto (unless requested by
the Agent) and any registration statements on Form S-8 or its equivalent),
reports on Forms 10-K, 10-Q and 8-K (or their equivalents) and all other
periodic or current reports which the Parent, the Borrower, any of their
respective Subsidiaries or any other Loan Party shall file with the Securities
and Exchange

 

64

 

Commission (or any Governmental Authority substituted therefor) or any
national securities exchange;

 

(c)                                  Shareholder Information. 
Promptly upon the mailing thereof to the shareholders of the Parent
generally, copies of all financial statements, reports and proxy statements so
mailed and promptly upon the issuance thereof copies of all press releases
issued by the Parent, the Borrower, any Subsidiary or any other Loan Party;

 

(d)                                 ERISA.  If and when
any member of the ERISA Group (i) gives or is required to give notice to
the PBGC of any “reportable event” (as defined in Section 4043 of ERISA)
with respect to any Plan which might constitute grounds for a termination of
such Plan under Title IV of ERISA, or knows that the plan administrator of any
Plan has given or is required to give notice of any such reportable event, a
copy of the notice of such reportable event given or required to be given to
the PBGC; (ii) receives notice of complete or partial withdrawal liability
under Title IV of ERISA or notice that any Multiemployer Plan is in
reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives
notice from the PBGC under Title IV of ERISA of an intent to terminate, impose
liability (other than for premiums under Section 4007 of ERISA) in respect
of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies
for a waiver of the minimum funding standard under Section 412 of the
Internal Revenue Code, a copy of such application; (v) gives notice of
intent to terminate any Plan under Section 4041(c) of ERISA, a copy
of such notice and other information filed with the PBGC; (vi) gives
notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a
copy of such notice; or (vii) fails to make any payment or contribution to
any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or
makes any amendment to any Plan or Benefit Arrangement which has resulted or could
result in the imposition of a Lien or the posting of a bond or other security,
a certificate of the chief financial officer of the Borrower or the Parent, as
applicable, setting forth details as to such occurrence and the action, if any,
which the Parent, the Borrower or applicable member of the ERISA Group is
required or proposes to take;

 

(e)                                  Litigation.  To the extent
the Parent, the Borrower or any Subsidiary is aware of the same, prompt notice
of the commencement of any proceeding or investigation by or before any
Governmental Authority and any action or proceeding in any court or other
tribunal or before any arbitrator against or in any other way relating
adversely to, or adversely affecting, the Parent, the Borrower or any
Subsidiary or any of their respective properties, assets or businesses which
could reasonably be expected to have a Material Adverse Effect, and prompt
notice of the receipt of notice that any United States income tax returns of
the Parent, the Borrower or any Subsidiary are being audited;

 

(f)                                    Modification of Organizational Documents. 
A copy of all amendments to the articles of incorporation, bylaws,
partnership agreement, operating agreement or other similar organizational
documents of the Parent, the Borrower or any other Loan Party adopted during
any fiscal quarter within 30 Business Days after the end of such fiscal
quarter;

 

(g)                                 Change of Management or Financial
Condition.  Prompt notice of any change in the senior
management of the Parent, the Borrower, any Subsidiary or any other Loan Party
and any change in the business, assets, liabilities, financial condition,
results of operations or

 

65

 

business prospects of the Parent, the Borrower, any Subsidiary or any
other Loan Party which has had or could reasonably be expected to have a
Material Adverse Effect;

 

(h)                                 Default. Notice of the occurrence of any of the following
promptly upon a Responsible Officer of the Parent or the Borrower obtaining
knowledge thereof: (i) any Default or Event of Default or (ii) any
event which constitutes or which with the passage of time, the giving of
notice, or otherwise, would constitute a default or event of default by the
Parent, the Borrower, any Subsidiary or any other Loan Party under any Material
Contract to which any such Person is a party or by which any such Person or any
of its respective properties may be bound;

 

(i)                                     Notice of Violations of Law. 
Prompt notice if the Parent, the Borrower, any Subsidiary or any other
Loan Party shall receive any notification from any Governmental Authority
alleging a violation of any Applicable Law or any inquiry which, in either
case, could reasonably be expected to have a Material Adverse Effect;

 

(j)                                     Material Subsidiary. 
Prompt notice of any Person becoming a Material Subsidiary;

 

(k)                                  Material Asset Sales. 
Prompt notice of the sale, transfer or other disposition of, in one or a
series of related transactions, assets constituting 10% or more of the Total
Asset Value to any Person other than the Parent, the Borrower, any Subsidiary
or any other Loan Party;

 

(l)                                     Material Contracts. 
Promptly upon entering into any Material Contract after the Agreement
Date, a copy to the Agent of such Material Contract;

 

(m)                               Patriot Act Information, Etc. 
From time to time and promptly upon each request, (i) information
identifying the Borrower as a Lender may request in order to comply with the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) and (ii) any information that the Agent reasonably deems necessary
from time to time in order to ensure compliance with all Applicable Laws
concerning money laundering and similar activities; and

 

(n)                                 Other Information. 
From time to time and promptly upon each request, such data,
certificates, reports, statements, opinions of counsel, documents or further
information regarding the business, assets, liabilities, financial condition,
results of operations or business prospects of the Parent, the Borrower or any
of their respective Subsidiaries as the Agent or any Lender may reasonably
request.

 

ARTICLE
IX. NEGATIVE COVENANTS

 

For so long as this Agreement is in effect, unless the
Requisite Lenders (or, if required pursuant to Section 12.6., all of the
Lenders) shall otherwise consent in the manner set forth in Section 12.6.,
the Borrower and the Parent shall comply with the following covenants:

 

66

 

Section 9.1.        Financial
Covenants.

 

Neither the Parent nor the Borrower shall permit:

 

(a)                                  Maximum Leverage Ratio. 
The ratio of (i) Total Indebtedness to (ii) Total Asset Value,
to exceed 0.65 to 1.0 at any time.

 

(b)                                 Minimum Fixed Charge Coverage Ratio. 
The ratio of (i) Adjusted EBITDA of the Parent and its Subsidiaries
determined on a consolidated basis for the fiscal quarter of the Parent most
recently ending to (ii) Fixed Charges for such period, to be less than
1.40 to 1.00 at any time.

 

(c)                                  Maximum Secured Indebtedness Ratio. 
The ratio of (i) Secured Indebtedness of the Parent and its
Subsidiaries determined on a consolidated basis to (ii) Total Asset Value,
to be greater than 0.55 to 1.00 at any time.

 

(d)                                 Unencumbered Leverage Ratio. 
The ratio of (i) Unsecured Indebtedness of the Parent and its
Subsidiaries to (ii) Unencumbered Asset Value, to be greater than 0.65 to
1.00 at any time.

 

(e)                                  Minimum Unencumbered Interest Coverage
Ratio.  The ratio of (i) Unencumbered Adjusted
NOI for the fiscal quarter of the Parent most recently ending to (ii) Unsecured
Interest Expense for such period, to be less than 1.75 to 1.00 at any time.

 

(f)                                    Minimum Net Worth. 
Tangible Net Worth at any time to be less than (i) $820,000,000 plus
(ii) 75% of the Net Proceeds of all Equity Issuances effected by the
Parent or any Subsidiary after the Effective Date.

 

Section 9.2.        Restricted
Payments.

 

If a Default or Event of Default exists, the Parent
shall not, and shall not permit any of its Subsidiaries to, declare or make any
Restricted Payment except (a) to the Parent or any Subsidiary and (b) the
Borrower may pay cash dividends to the Parent and other holders of partnership
interests in the Borrower on a pro rata basis with respect to any fiscal year
ending during the term of this Agreement to the extent necessary for the Parent
to distribute, and the Parent may so distribute, cash dividends to its
shareholders in an aggregate amount not to exceed the minimum amount necessary
for the Parent to remain in compliance with Section 7.13. 
If a Default or Event of Default specified in Section 10.1.(f) or Section 10.1.(g) shall exist, or if as a
result of the occurrence of any other Event of Default any of the Obligations
have been accelerated pursuant to Section 10.2.(a), the Parent shall not, and shall not permit any
Subsidiary to, make any Restricted Payments to any Person other than to the
Parent or any Subsidiary.

 

Section 9.3.        Indebtedness.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or any other Loan Party to, incur, assume, or otherwise
become obligated in respect of any Indebtedness after the Agreement Date if
immediately prior to the assumption, incurring or becoming obligated in

 

67

 

respect thereof, or immediately thereafter and after giving effect
thereto, a Default or Event of Default is or would be in existence, including
without limitation, a Default or Event of Default resulting from a violation of
any of the covenants contained in Section 9.1.

 

Section 9.4.        Liens;
Negative Pledges; Other Matters.

 

(a)                                  The Parent and the Borrower shall not,
and shall not permit any Subsidiary or other Loan Party to, create, assume, or
incur any Lien (other than Permitted Liens) upon any of its properties, assets,
income or profits of any character whether now owned or hereafter acquired if
immediately prior to the creation, assumption or incurring of such Lien, or
immediately thereafter, a Default or Event of Default is or would be in
existence, including without limitation, a Default or Event of Default
resulting from a violation of any of the covenants contained in Section 9.1.

 

(b)                                 The Parent and the Borrower shall not,
and shall not permit any Subsidiary or other Loan Party to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Subsidiary (other than an
Excluded Subsidiary) to: (i) pay dividends or make any other distribution
on any of such Subsidiary’s capital stock or other equity interests owned by
the Parent or any Subsidiary; (ii) pay any Indebtedness owed to the Parent
or any Subsidiary; (iii) make loans or advances to the Parent or any
Subsidiary; or (iv) transfer any of its property or assets to the Parent
or any Subsidiary.

 

Section 9.5.        Merger,
Consolidation, Sales of Assets and Other Arrangements.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or other Loan Party to: (i) enter into any
transaction of merger or consolidation; (ii) liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution); or (iii) convey,
sell, lease, sublease, transfer or otherwise dispose of, in one transaction or
a series of transactions, all or any substantial part of its business or
assets, whether now owned or hereafter acquired; provided, however, that:

 

(a)                                  any of the actions described in the immediately
preceding clauses (i) through (iii) may be taken with respect to
any Subsidiary or any other Loan Party (other than the Parent or the Borrower)
so long as immediately prior to the taking of such action, and immediately
thereafter and after giving effect thereto, no Default or Event of Default is
or would be in existence; notwithstanding the foregoing, any such Loan Party
(other than the Borrower) may enter into a transaction of merger pursuant to
which such Loan Party is not the survivor of such merger only if (i) the
Borrower shall have given the Agent and the Lenders at least 30 Business Days’
prior written notice of such merger, such
notice to include a certification to the effect that immediately after
and after giving effect to such action, no Default or Event of Default is or
would be in existence; (ii) within 5 Business Days of consummation of such
merger, the survivor entity (if not already a Guarantor) shall have executed
and delivered an assumption agreement in form and substance satisfactory to the
Agent pursuant to which such survivor entity shall expressly assume all of the
such Loan Party’s Obligations under the Loan Documents to which it is a party; (iii) within
30 days of consummation of such merger, the survivor entity delivers to the
Agent the following: (A) items of the type referred to in
Sections 5.1.(a)(iv), (v), (ix) through (xii) and

 

68

 

(xvi) with respect to the survivor entity as in effect after
consummation of such merger (if not previously delivered to the Agent and still
in effect), (B) copies of all documents entered into by such Loan Party or
the survivor entity to effectuate the consummation of such merger, including,
but not limited to, articles of merger and the plan of merger, (C) copies,
certified by the Secretary or Assistant Secretary (or other individual
performing similar functions) of such Loan Party or the survivor entity, of all
corporate and shareholder action authorizing such merger and (D) copies of
any filings with the Securities and Exchange Commission in connection with such
merger; and (iv) such Loan Party and the survivor entity each takes such
other action and delivers such other documents, instruments, opinions and
agreements as the Agent may reasonably request;

 

(b)                                 the Parent, the Borrower, the
Subsidiaries and the other Loan Parties may lease and sublease their respective
assets, as lessor or sublessor (as the case may be), in the ordinary course of
their business;

 

(c)                                  a Person may merge with and into the
Borrower or the Parent so long as (i) the Borrower or the Parent, as the
case may be, is the survivor of such merger, (ii) immediately prior to
such merger, and immediately thereafter and after giving effect thereto, no
Default or Event of Default is or would be in existence, (iii) the
Borrower shall have given the Agent and the Lenders at least 30 Business Days’
prior written notice of such merger, such
notice to include a certification as to the matters described in the
immediately preceding clause (ii) (except that in the case of
the merger of a Subsidiary with and into the Borrower or the Parent such notice
may be given no later 5 Business Days following the consummation of such
merger); and

 

(d)                                 subject to the limitations and
requirements of Section 7.12.,
the Parent, the Borrower and each Subsidiary may sell, transfer or dispose of
assets among themselves.

 

Section 9.6.        Fiscal
Year.

 

Neither the Parent nor the Borrower shall change its
fiscal year from that in effect as of the Agreement Date.

 

Section 9.7.        Modifications
to Material Contracts.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or other Loan Party to, enter into any amendment or
modification to any Material Contract which could reasonably be expected to
have a Material Adverse Effect.

 

Section 9.8.        Modifications
of Organizational Documents.

 

The Parent and the Borrower shall not, and shall not
permit any Loan Party or other Subsidiary to, amend, supplement, restate or
otherwise modify its articles or certificate of incorporation, by-laws,
operating agreement, declaration of trust, partnership agreement or other
applicable organizational document if such amendment, supplement, restatement
or other modification could reasonably be expected to have a Material Adverse
Effect.

 

69

 

Section 9.9.        Transactions
with Affiliates.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or any other Loan Party to, permit to exist or enter
into, any transaction (including the purchase, sale, lease or exchange of any
property or the rendering of any service) with any Affiliate, except
transactions in the ordinary course of and pursuant to the reasonable
requirements of the business of the Parent or any of its Subsidiaries and upon
fair and reasonable terms which are no less favorable to the Parent or such
Subsidiary than would be obtained in a comparable arm’s length transaction with
a Person that is not an Affiliate.

 

Section 9.10.
ERISA Exemptions.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary to, permit any of its respective assets to become or be
deemed to be “plan assets” within the meaning of ERISA, the Internal Revenue
Code and the respective regulations promulgated thereunder.

 

Section 9.11.
Foreign Assets Control.

 

The Borrower and each Guarantor shall not be at any
time a Person with whom the Agent and the Lenders are restricted from doing
business under the regulations of OFAC (including, Sanctioned Persons) or under
any statute, executive order (including, the September 24, 2001 Executive
Order Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism), or other governmental action and
shall not engage in any dealings or transactions or otherwise be associated
with such Persons.

 

ARTICLE
X. DEFAULT

 

Section 10.1.
Events of Default.

 

Each of the following shall constitute an Event of
Default, whatever the reason for such event and whether it shall be voluntary
or involuntary or be effected by operation of Applicable Law or pursuant to any
judgment or order of any Governmental Authority:

 

(a)                                  Default in Payment of Principal. 
The Borrower shall fail to pay when due (whether upon demand, at
maturity, by reason of acceleration or otherwise) the principal of any of the
Loans, or any Reimbursement Obligation.

 

(b)                                 Default in Payment of Interest and Other
Obligations.  The Borrower shall fail to pay when due any
interest on any of the Loans or any of the other payment Obligations owing by
the Borrower under this Agreement or any other Loan Document, or any other Loan
Party shall fail to pay when due any payment Obligation owing by such other
Loan Party under any Loan Document to which it is a party, and such failure
shall continue for a period of 5 Business Days.

 

(c)                                  Default in Performance.  (i) The
Parent or the Borrower shall fail to perform or observe any term, covenant,
condition or agreement contained in Section 8.4.(h) or in Article IX.
or (ii) the Borrower or any other Loan Party shall fail to perform or
observe any term, covenant, condition or agreement contained in this Agreement
or any other Loan Document to which it is a

 

70

 

party and not otherwise mentioned in this Section and in the case
of this clause (ii) only such failure shall continue for a period of
30 days after the earlier of (x) the date upon which a Responsible
Officer of the Borrower or such Loan Party obtains knowledge of such failure or
(y) the date upon which the Borrower has received written notice of such
failure from the Agent.

 

(d)                                 Misrepresentations. 
Any written statement, representation or warranty made or deemed made by
or on behalf of the Parent, the Borrower or any other Loan Party under this
Agreement or under any other Loan Document, or any amendment hereto or thereto,
or in any other writing or statement at any time furnished or made or deemed
made by or on behalf of the Borrower or any other Loan Party to the Agent or
any Lender, shall at any time prove to have been incorrect or misleading, in
light of the circumstances in which made or deemed made, in any material
respect when furnished or made or deemed made.

 

(e)                                  Indebtedness Cross-Default; Derivatives
Contracts.

 

(i)                                     The Parent, the Borrower or any
Subsidiary or any other Loan Party shall fail to pay when due and payable the
principal of, or interest on, any Indebtedness (other than the Loans) having an
aggregate outstanding principal amount of $50,000,000 or more (or $75,000,000
or more in the case of Nonrecourse Indebtedness) (“Material Indebtedness”) and
as a result, the holder or holders of such Material Indebtedness, any trustee
or agent acting on behalf of such holder or holders or any other Person, is
permitted to accelerate the maturity of any such Material Indebtedness or
require any such Material Indebtedness to be prepaid or repurchased prior to
its stated maturity; or

 

(ii)                                  (x) the maturity of any Material
Indebtedness shall have been accelerated in accordance with the provisions of
any indenture, contract or instrument evidencing, providing for the creation of
or otherwise concerning such Material Indebtedness or (y) any Material
Indebtedness shall have been required to be prepaid or repurchased prior to the
stated maturity thereof; or

 

(iii)                               any other event shall have occurred and
be continuing with respect to any Material Indebtedness and as a result, the
holder or holders of Material Indebtedness, any trustee or agent acting on
behalf of such holder or holders or any other Person, is permitted to
accelerate the maturity of any such Material Indebtedness or require any such
Material Indebtedness to be prepaid or repurchased prior to its stated
maturity; or

 

(iv)                              there occurs under any Derivatives
Contract an Early Termination Date (as defined in such Derivatives Contract)
resulting from (A) any event of default under such Derivatives Contract as
to which any Loan Party is the Defaulting Party (as defined in such Derivatives
Contract) or (B) any Termination Event (as so defined) under such
Derivatives Contract as to which any Loan Party is an Affected Party (as so
defined) and, in either event, the Derivatives Termination Value owed by any
Loan Party as a result thereof is $50,000,000 or more.

 

(f)                                    Voluntary Bankruptcy Proceeding. 
The Parent, the Borrower, any other Loan Party or any Material
Subsidiary shall:  (i) commence a
voluntary case under the Bankruptcy

 

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Code of 1978, as amended, or other federal bankruptcy laws (as now or
hereafter in effect); (ii) file a petition seeking to take advantage of
any other Applicable Laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding-up, or composition or adjustment of debts; (iii) consent
to, or fail to contest in a timely and appropriate manner, any petition filed
against it in an involuntary case under such bankruptcy laws or other
Applicable Laws or consent to any proceeding or action described in the
immediately following subsection; (iv) apply for or consent to, or fail to
contest in a timely and appropriate manner, the appointment of, or the taking
of possession by, a receiver, custodian, trustee, or liquidator of itself or of
a substantial part of its property, domestic or foreign; (v) admit in
writing its inability to pay its debts as they become due; (vi) make a
general assignment for the benefit of creditors; (vii) make a conveyance
fraudulent as to creditors under any Applicable Law; or (viii) take any
corporate or partnership action for the purpose of effecting any of the
foregoing.

 

(g)                                 Involuntary Bankruptcy Proceeding. 
A case or other proceeding shall be commenced against the Parent, the
Borrower, any other Loan Party or any Material Subsidiary of the Parent or the
Borrower in any court of competent jurisdiction seeking:  (i) relief under the Bankruptcy Code of
1978, as amended, or other federal bankruptcy laws (as now or hereafter in
effect) or under any other Applicable Laws, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding-up, or composition or
adjustment of debts; or (ii) the appointment of a trustee, receiver,
custodian, liquidator or the like of such Person, or of all or any substantial
part of the assets, domestic or foreign, of such Person, and such case or
proceeding shall continue undismissed or unstayed for a period of
60 consecutive calendar days, or an order granting the remedy or other
relief requested in such case or proceeding against the Parent, the Borrower,
such Subsidiary or such other Loan Party (including, but not limited to, an
order for relief under such Bankruptcy Code or such other federal bankruptcy
laws) shall be entered.

 

(h)                                 Litigation; Enforceability. 
The Parent, the Borrower, any Subsidiary or any other Loan Party shall
disavow, revoke or terminate (or attempt to terminate) any Loan Document to
which it is a party or shall otherwise challenge or contest in any action, suit
or proceeding in any court or before any Governmental Authority the validity or
enforceability of this Agreement, any Note or any other Loan Document or this
Agreement, any Note, the Guaranty or any other Loan Document shall cease to be
in full force and effect (except as a result of the express terms thereof).

 

(i)                                     Judgment.  A judgment or
order for the payment of money or for an injunction shall be entered against
the Parent, the Borrower, any Subsidiary or any other Loan Party, by any court
or other tribunal and (i) such judgment or order shall continue for a
period of 30 days without being paid, stayed or dismissed through appropriate
appellate proceedings and (ii) either (A) the amount of such judgment
or order for which insurance has not been acknowledged in writing by the
applicable insurance carrier (or the amount as to which the insurer has denied
liability) exceeds, individually or together with all other such outstanding
judgments or orders $50,000,000 or (y) (B) in the case of an
injunction or other non-monetary judgment, such judgment could reasonably be
expected to have a Material Adverse Effect.

 

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(j)                                     Attachment.  A warrant,
writ of attachment, execution or similar process shall be issued against any
property of the Parent, the Borrower, any Subsidiary of the Parent or the
Borrower or any other Loan Party which exceeds, individually or together with
all other such warrants, writs, executions and processes, $50,000,000 in amount
and such warrant, writ, execution or process shall not be discharged, vacated,
stayed or bonded for a period of 30 days; provided, however, that if a bond has
been issued in favor of the claimant or other Person obtaining such warrant,
writ, execution or process, the issuer of such bond shall execute a waiver or
subordination agreement in form and substance satisfactory to the Agent
pursuant to which the issuer of such bond subordinates its right of
reimbursement, contribution or subrogation to the Obligations and waives or
subordinates any Lien it may have on the assets of any Loan Party.

 

(k)                                  ERISA.  Any member of
the ERISA Group shall fail to pay when due an amount or amounts aggregating in
excess of $20,000,000 which it shall have become liable to pay under Title IV
of ERISA; or notice of intent to terminate a Plan or Plans having aggregate
Unfunded Liabilities in excess of $20,000,000 shall be filed under Title IV of
ERISA by any member of the ERISA Group, any plan administrator or any
combination of the foregoing; or the PBGC shall institute proceedings under
Title IV of ERISA to terminate, to impose liability (other than for premiums
under Section 4007 of ERISA) in respect of, or to cause a trustee to be
appointed to administer, any Plan or Plans having aggregate Unfunded
Liabilities in excess of $20,000,000; or a condition shall exist by reason of
which the PBGC would be entitled to obtain a decree adjudicating that any such
Plan must be terminated; or there shall occur a complete or partial withdrawal
from, or a default, within the meaning of Section 4219(c)(5) of
ERISA, with respect to, one or more Multiemployer Plans which could cause one
or more members of the ERISA Group to incur a current payment obligation in
excess of $20,000,000.

 

(l)                                     Loan Documents. 
An Event of Default (as defined therein) shall occur under any of the
other Loan Documents.

 

(m)                               Change of Control/Change in Management.

 

(i)                                     Any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)), is or becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
Person will be deemed to have “beneficial ownership” of all securities that
such Person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 25% of the total voting power of the then outstanding voting stock of the
Parent;

 

(ii)                                  During any period of 12 consecutive
months ending after the Agreement Date, individuals who at the beginning of any
such 12-month period constituted the Board of Trustees of the Parent (together
with any new trustees whose election by such Board or whose nomination for
election by the shareholders of the Parent was approved by a vote of a majority
of the trustees then still in office who were either directors at the beginning
of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Trustees of the Parent then in office; or

 

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(iii)                               Parent, or any Wholly Owned Subsidiary of
the Parent, shall cease for any reason to be the general partner of the
Borrower.

 

Section 10.2.
Remedies Upon Event of Default.

 

Upon the occurrence of an Event of Default the
following provisions shall apply:

 

(a)                                  Acceleration; Termination of Facilities.

 

(i)                                     Automatic.  Upon the
occurrence of an Event of Default specified in Sections 10.1.(f) or
10.1.(g), (A)(i) the principal of, and all accrued interest on, the Loans
and the Notes at the time outstanding, (ii) an amount equal to the Stated
Amount of all Letters of Credit outstanding as of the date of the occurrence of
such Event of Default for deposit into the Collateral Account pursuant to Section 10.5.
and (iii) all of the other Obligations of the Borrower, including, but not
limited to, the other amounts owed to the Lenders, the Swingline Lender and the
Agent under this Agreement, the Notes or any of the other Loan Documents shall
become immediately and automatically due and payable by the Borrower without
presentment, demand, protest, or other notice of any kind, all of which are
expressly waived by the Borrower and (B) all of the Commitments, the
obligation of the Lenders to make Revolving Loans, the Swingline Commitment,
the obligation of the Swingline Lender to make Swingline Loans, and the
obligation of the Agent to issue Letters of Credit hereunder, shall all
immediately and automatically terminate.

 

(ii)                                  Optional.  If any other
Event of Default shall exist, the Agent shall, at the direction of the
Requisite Lenders:  (A) declare (1) the
principal of, and accrued interest on, the Loans and the Notes at the time
outstanding, (2) an amount equal to the Stated Amount of all Letters of
Credit outstanding as of the date of the occurrence of such other Event of
Default for deposit into the Collateral Account pursuant to Section 10.5.
and (3) all of the other Obligations, including, but not limited to, the
other amounts owed to the Lenders and the Agent under this Agreement, the Notes
or any of the other Loan Documents to be forthwith due and payable, whereupon
the same shall immediately become due and payable without presentment, demand,
protest or other notice of any kind, all of which are expressly waived by the
Borrower and (B) terminate the Commitments, the Swingline Commitment and
the obligation of the Lenders to make Loans hereunder and the obligation of the
Agent to issue Letters of Credit hereunder.

 

(b)                                 Loan Documents. 
The Requisite Lenders may direct the Agent to, and the Agent if so
directed shall, exercise any and all of its rights under any and all of the
other Loan Documents.

 

(c)                                  Applicable Law. 
The Requisite Lenders may direct the Agent to, and the Agent if so
directed shall, exercise all other rights and remedies it may have under any
Applicable Law.

 

(d)                                 Appointment of Receiver. 
To the extent permitted by Applicable Law, the Agent and the Lenders
shall be entitled to the appointment of a receiver for the assets and
properties of

 

74

 

the Parent, the Borrower and their respective Subsidiaries, without
notice of any kind whatsoever and without regard to the adequacy of any
security for the Obligations or the solvency of any party bound for its
payment, to take possession of all or any portion of the business operations of
the Parent, the Borrower and their respective Subsidiaries and to exercise such
power as the court shall confer upon such receiver.

 

Section 10.3.
Remedies Upon Default.

 

Upon the occurrence of a Default specified in
Sections 10.1.(f) or 10.1.(g), the Commitments shall immediately and
automatically terminate.

 

Section 10.4.
Allocation of Proceeds.

 

If an Event of Default shall exist and maturity of any
of the Obligations has been accelerated, all payments received by the Agent
under any of the Loan Documents, in respect of any principal of or interest on
the Obligations or any other amounts payable by the Borrower hereunder or
thereunder, shall be applied in the following order and priority:

 

(a)                                  amounts due to the Agent in respect of
fees and expenses due under Section 12.2.;

 

(b)                                 amounts due to the Lenders in respect of
fees and expenses due under Section 12.2., pro rata in the amount then due
each Lender;

 

(c)                                  payments of interest on Swingline Loans;

 

(d)                                 payments of interest on all other Loans
and Reimbursement Obligations, to be applied for the ratable benefit of the
Lenders;

 

(e)                                  payments of principal of Swingline Loans;

 

(f)                                    payments of principal of all other Loans,
Reimbursement Obligations and other Letter of Credit Liabilities, to be applied
for the ratable benefit of the Lenders; provided, however, to the extent that
any amounts available for distribution pursuant to this subsection are
attributable to the issued but undrawn amount of an outstanding Letters of
Credit, such amounts shall be paid to the Agent for deposit into the Collateral
Account;

 

(g)                                 amounts due the Agent and the Lenders
pursuant to Sections 11.7. and 12.9.;

 

(h)                                 payments of all other Obligations and
other amounts due and owing by the Borrower and the other Loan Parties under
any of the Loan Documents, if any, to be applied for the ratable benefit of the
Lenders; and

 

(i)                                     any amount remaining after application as
provided above, shall be paid to the Borrower or whomever else may be legally
entitled thereto.

 

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Section 10.5.
Collateral Account.

 

(a)                                  As collateral security for the prompt
payment in full when due of all Letter of Credit Liabilities and the other
Obligations, the Borrower hereby pledges and grants to the Agent, for the
ratable benefit of the Agent and the Lenders as provided herein, a security
interest in all of its right, title and interest in and to the Collateral
Account and the balances from time to time in the Collateral Account (including
the investments and reinvestments therein provided for below).  The balances from time to time in the
Collateral Account shall not constitute payment of any Letter of Credit
Liabilities until applied by the Agent as provided herein.  Anything in this Agreement to the contrary
notwithstanding, funds held in the Collateral Account shall be subject to
withdrawal only as provided in this Section.

 

(b)                                 Amounts on deposit in the Collateral
Account shall be invested and reinvested by the Agent in such Cash Equivalents
as the Agent shall determine in its sole discretion.  All such investments and reinvestments shall
be held in the name of and be under the sole dominion and control of the Agent
for the ratable benefit of the Lenders. 
The Agent shall exercise reasonable care in the custody and preservation
of any funds held in the Collateral Account and shall be deemed to have
exercised such care if such funds are accorded treatment substantially
equivalent to that which the Agent accords other funds deposited with the
Agent, it being understood that the Agent shall not have any responsibility for
taking any necessary steps to preserve rights against any parties with respect
to any funds held in the Collateral Account.

 

(c)                                  If a drawing pursuant to any Letter of
Credit occurs on or prior to the expiration date of such Letter of Credit, the
Borrower and the Lenders authorize the Agent to use the monies deposited in the
Collateral Account to make payment to the beneficiary with respect to such
drawing or the payee with respect to such presentment.

 

(d)                                 If an Event of Default exists, the
Requisite Lenders may, in their discretion, at any time and from time to time,
instruct the Agent to liquidate any such investments and reinvestments and
apply proceeds thereof to the Obligations in accordance with Section 10.4.

 

(e)                                  So long as no Default or Event of Default
exists, and to the extent amounts on deposit in the Collateral Account exceed
the aggregate amount of the Letter of Credit Liabilities, the Agent shall, from
time to time, at the request of the Borrower, deliver to the Borrower within
10 Business Days after the Agent’s receipt of such request from the
Borrower, against receipt but without any recourse, warranty or representation
whatsoever, such of the balances in the Collateral Account as exceed the
aggregate amount of Letter of Credit Liabilities at such time.

 

(f)                                    The Borrower shall pay to the Agent from
time to time such fees as the Agent normally charges for similar services in
connection with the Agent’s administration of the Collateral Account and
investments and reinvestments of funds therein.

 

Section 10.6.
Performance by Agent.

 

If the Parent or the Borrower shall fail to perform
any covenant, duty or agreement contained in any of the Loan Documents, and
such failure has continued after the expiration of

 

76

 

any cure or grace period set forth herein, the Agent may, after notice
to the Parent or the Borrower, perform or attempt to perform such covenant,
duty or agreement on behalf of the Parent or the Borrower.  In such event, the Borrower shall, at the
request of the Agent, promptly pay any amount reasonably expended by the Agent
in such performance or attempted performance to the Agent, together with
interest thereon at the applicable Post-Default Rate from the date of such
expenditure until paid.  Notwithstanding
the foregoing, neither the Agent nor any Lender shall have any liability or
responsibility whatsoever for the performance of any obligation of the Borrower
under this Agreement or any other Loan Document.

 

Section 10.7.
Rights Cumulative.

 

The rights and remedies of the Agent and the Lenders
under this Agreement and each of the other Loan Documents shall be cumulative
and not exclusive of any rights or remedies which any of them may otherwise
have under Applicable Law.  In exercising
their respective rights and remedies the Agent and the Lenders may be selective
and no failure or delay by the Agent or any of the Lenders in exercising any
right shall operate as a waiver of it, nor shall any single or partial exercise
of any power or right preclude its other or further exercise or the exercise of
any other power or right.

 

ARTICLE
XI. THE AGENT

 

Section 11.1.
Authorization and Action.

 

Each
Lender hereby appoints and authorizes the Agent to take such action as
contractual representative on such Lender’s behalf and to exercise such powers
under this Agreement and the other Loan Documents as are specifically delegated
to the Agent by the terms hereof and thereof, together with such powers as are
reasonably incidental thereto.  Not in
limitation of the foregoing, each Lender authorizes and directs the Agent to
enter into the Loan Documents for the benefit of the Lenders.  Each Lender hereby agrees that, except as
otherwise set forth herein, any action taken by the Requisite Lenders in
accordance with the provisions of this Agreement or the Loan Documents, and the
exercise by the Requisite Lenders of the powers set forth herein or therein,
together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders. 
Nothing herein shall be construed to deem the Agent a trustee or
fiduciary for any Lender nor to impose on the Agent duties or obligations other
than those expressly provided for herein. 
At the request of a Lender, the Agent will forward to such Lender copies
or, where appropriate, originals of the documents delivered to the Agent
pursuant to this Agreement or the other Loan Documents.  The Agent will also furnish to any Lender,
upon the request of such Lender, a copy of any certificate or notice furnished
to the Agent by the Borrower, any Loan Party or any other Affiliate of the
Borrower, pursuant to this Agreement or any other Loan Document not already
delivered to such Lender pursuant to the terms of this Agreement or any such
other Loan Document.  As to any matters
not expressly provided for by the Loan Documents (including, without
limitation, enforcement or collection of any of the Obligations), the Agent
shall not be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in
so acting or refraining from acting) upon the instructions of the Requisite
Lenders (or all of the Lenders if explicitly required under any other provision
of this Agreement), and such instructions shall be binding upon all Lenders and
all holders of any of the Obligations; provided, however, that,

 

77

 

notwithstanding anything in this
Agreement to the contrary, the Agent shall not be required to take any action
which exposes the Agent to personal liability or which is contrary to this
Agreement or any other Loan Document or Applicable Law.  Not in limitation of the foregoing, the Agent
shall not exercise any right or remedy it or the Lenders may have under any
Loan Document upon the occurrence of a Default or an Event of Default unless
the Requisite Lenders have so directed the Agent to exercise such right or
remedy.

 

Section 11.2.
Agent’s Reliance, Etc.

 

Notwithstanding any other provisions of this Agreement
or any other Loan Documents, neither the Agent nor any of its directors,
officers, agents, employees or counsel shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement or
any other Loan Document, except for its or their own gross negligence or
willful misconduct as determined by a court of competent jurisdiction in a
final, non-appealable judgment.  Without
limiting the generality of the foregoing, the Agent: (a) may treat the
payee of any Note as the holder thereof until the Agent receives written notice
of the assignment or transfer thereof signed by such payee and in form
satisfactory to the Agent; (b) may consult with legal counsel (including
its own counsel or counsel for the Borrower or any other Loan Party),
independent public accountants and other experts selected by it and shall not
be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) makes
no warranty or representation to any Lender or any other Person and shall not
be responsible to any Lender or any other Person for any statements, warranties
or representations made by any Person in or in connection with this Agreement
or any other Loan Document; (d) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of any of this Agreement or any other Loan Document or the
satisfaction of any conditions precedent under this Agreement or any Loan
Document on the part of the Borrower or other Persons or inspect the property,
books or records of the Borrower or any other Person; (e) shall not be responsible
to any Lender for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Loan Document,
any other instrument or document furnished pursuant thereto or any collateral
covered thereby or the perfection or priority of any Lien in favor of the Agent
on behalf of the Lenders in any such collateral; and (f) shall incur no
liability under or in respect of this Agreement or any other Loan Document by
acting upon any notice, consent, certificate or other instrument or writing
(which may be by telephone or telecopy) believed by it to be genuine and
signed, sent or given by the proper party or parties.

 

Section 11.3.
Notice of Defaults.

 

The Agent shall not be deemed to have knowledge or
notice of the occurrence of a Default or Event of Default unless the Agent has
received notice from a Lender, the Parent or the Borrower referring to this
Agreement, describing with reasonable specificity such Default or Event of
Default and stating that such notice is a “notice of default.”  If any Lender (excluding the Lender which is
also serving as the Agent) becomes aware of any Default or Event of Default, it
shall promptly send to the Agent such a “notice of default.”  Further, if the Agent receives such a “notice
of default”, the Agent shall give prompt notice thereof to the Lenders.

 

78

 

Section 11.4.
KeyBank as Lender.

 

KeyBank, as a Lender, shall have the same rights and
powers under this Agreement and any other Loan Document as any other Lender and
may exercise the same as though it were not the Agent; and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include KeyBank in each
case in its individual capacity.  KeyBank
and its affiliates may each accept deposits from, maintain deposits or credit
balances for, invest in, lend money to, act as trustee under indentures of,
serve as financial advisor to, and generally engage in any kind of business
with, the Parent, the Borrower, any other Loan Party or any other affiliate
thereof as if it were any other bank and without any duty to account therefor
to the other Lenders.  Further, the Agent
and any affiliate may accept fees and other consideration from the Parent or
the Borrower for services in connection with this Agreement and otherwise
without having to account for the same to the other Lenders.  The Lenders acknowledge that, pursuant to
such activities, KeyBank or its affiliates may receive information regarding
the Parent, the Borrower, other Loan Parties, other Subsidiaries and other
Affiliates (including information that may be subject to confidentiality
obligations in favor of such Person) and acknowledge that the Agent shall be
under no obligation to provide such information to them.

 

Section 11.5.
Approvals of Lenders.

 

All communications from the Agent to any Lender
requesting such Lender’s determination, consent, approval or disapproval (a) shall
be given in the form of a written notice to such Lender, (b) shall be
accompanied by a description of the matter or issue as to which such
determination, approval, consent or disapproval is requested, or shall advise
such Lender where information, if any, regarding such matter or issue may be
inspected, or shall otherwise describe the matter or issue to be resolved, (c) shall
include, if reasonably requested by such Lender and to the extent not
previously provided to such Lender, written materials and a summary of all oral
information provided to the Agent by the Parent and the Borrower in respect of
the matter or issue to be resolved, and (d) shall include the Agent’s
recommended course of action or determination in respect thereof.  Each Lender shall reply promptly, but in any
event within 10 Business Days (or such lesser or greater period as may be
specifically required under the Loan Documents) of receipt of such
communication.  Except as otherwise
provided in this Agreement, unless a Lender shall give written notice to the
Agent that it specifically objects to the recommendation or determination of
the Agent (together with a written explanation of the reasons behind such
objection) within the applicable time period for reply (which shall be no less
than 10 Business Days), such Lender shall be deemed to have conclusively
approved of or consented to such recommendation or determination.

 

Section 11.6.
Lender Credit Decision, Etc.

 

Each Lender expressly acknowledges and agrees that
neither the Agent nor any of its officers, directors, employees, agents,
counsel, attorneys-in-fact or other affiliates has made any representations or
warranties as to the financial condition, operations, creditworthiness,
solvency or other information concerning the business or affairs of the
Borrower, any other Loan Party, any Subsidiary or any other Person to such
Lender and that no act by the Agent hereafter taken, including any review of
the affairs of the Parent, the Borrower, any other Loan Party or any other
Subsidiary of the Parent or the Borrower, shall be deemed to constitute any
such representation

 

79

 

or warranty by the Agent
to any Lender. Each Lender acknowledges that it has made its own credit and
legal analysis and decision to enter into this Agreement and the transactions
contemplated hereby, independently and without reliance upon the Agent, any other
Lender or counsel to the Agent, or any of their respective officers, directors,
employees and agents, and based on the financial statements of the Parent, the
Borrower, the Subsidiaries or any other Affiliate thereof, and inquiries of
such Persons, its independent due diligence of the business and affairs of the
Borrower, the Loan Parties, the Subsidiaries of the Parent and the Borrower and
other Persons, its review of the Loan Documents, the legal opinions required to
be delivered to it hereunder, the advice of its own counsel and such other
documents and information as it has deemed appropriate. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent,
any other Lender or counsel to the Agent or any of their respective officers,
directors, employees and agents, and based on such review, advice, documents
and information as it shall deem appropriate at the time, continue to make its
own decisions in taking or not taking action under the Loan Documents. Except
for notices, reports and other documents and information expressly required to
be furnished to the Lenders by the Agent under this Agreement or any of the
other Loan Documents, the Agent shall have no duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, financial and other condition or creditworthiness of the
Borrower, any other Loan Party or any other Affiliate thereof which may come
into possession of the Agent, or any of its officers, directors, employees,
agents, attorneys-in-fact or other affiliates. Each Lender acknowledges that
the Agent’s legal counsel in connection with the transactions contemplated by
this Agreement is only acting as counsel to the Agent and is not acting as counsel
to such Lender.

 

Section 11.7. Indemnification of Agent.

 

Each
Lender agrees to indemnify the Agent (to the extent not reimbursed by the
Borrower and without limiting the obligation of the Borrower to do so) pro rata
in accordance with such Lender’s respective Commitment Percentage, from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may at any time be imposed on, incurred by, or asserted
against the Agent (in its capacity as Agent but not as a Lender) in any way
relating to or arising out of the Loan Documents, any transaction contemplated
hereby or thereby or any action taken or omitted by the Agent under the Loan
Documents (collectively, “Indemnifiable Amounts”); provided, however, that no
Lender shall be liable for any portion of such Indemnifiable Amounts to the
extent resulting from the Agent’s gross negligence or willful misconduct as
determined by a court of competent jurisdiction in a final, non-appealable
judgment or if the Agent fails to follow the written direction of the Requisite
Lenders (or all of the Lenders if expressly required hereunder) unless such
failure results from the Agent following the advice of counsel to the Agent of
which advice the Lenders have received notice. Without limiting the generality
of the foregoing but subject to the preceding proviso, each Lender agrees to
reimburse the Agent (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees of the
counsel(s) of the Agent’s own choosing) incurred by the Agent in
connection with the preparation, negotiation, execution, or enforcement of, or
legal advice with respect to the rights or responsibilities of the parties
under, the Loan Documents, any suit or action brought by the Agent to enforce
the terms of the Loan Documents

 

80

 

and/or collect any
Obligations, any “lender liability” suit or claim brought against the Agent
and/or the Lenders, and any claim or suit brought against the Agent, and/or the
Lenders arising under any Environmental Laws. Such out-of-pocket expenses
(including counsel fees) shall be advanced by the Lenders on the request of the
Agent notwithstanding any claim or assertion that the Agent is not entitled to
indemnification hereunder upon receipt of an undertaking by the Agent that the Agent
will reimburse the Lenders if it is actually and finally determined by a court
of competent jurisdiction that the Agent is not so entitled to indemnification.
The agreements in this Section shall survive the payment of the Loans and
all other amounts payable hereunder or under the other Loan Documents and the
termination of this Agreement. If the Borrower shall reimburse the Agent for
any Indemnifiable Amount following payment by any Lender to the Agent in
respect of such Indemnifiable Amount pursuant to this Section, the Agent shall
share such reimbursement on a ratable basis with each Lender making any such
payment.

 

Section 11.8. Successor Agent.

 

The
Agent may resign at any time as Agent under the Loan Documents by giving
written notice thereof to the Lenders and the Borrower. The Agent may be
removed as Agent under the Loan Documents for gross negligence or willful
misconduct upon 30-day’s prior written notice by all Lenders (other than the
Lender then acting as Agent). Upon any such resignation or removal, the
Requisite Lenders shall have the right to appoint a successor Agent which
appointment shall, provided no Default or Event of Default exists, be subject
to the Borrower’s approval, which approval shall not be unreasonably withheld
or delayed (except that the Borrower shall, in all events, be deemed to have
approved each Lender and its affiliates as a successor Agent). If no successor
Agent shall have been so appointed in accordance with the immediately preceding
sentence, and shall have accepted such appointment, within 30 days after the
resigning Agent’s giving of notice of resignation or the giving of notice of
the removal of the Agent, then the resigning or removed Agent may, on behalf of
the Lenders, appoint a successor Agent, which shall be a Lender, if any Lender
shall be willing to serve, and otherwise shall be a commercial bank having
total combined assets of at least $50,000,000,000; provided, the resigning or
removed Agent shall continue to serve as Agent until such time as a successor Agent
shall have accepted such appointment. Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under the Loan Documents; provided, however, such
retiring Agent shall not be relieved from any obligations arising prior to its
discharge the extent resulting from the Agent’s gross negligence or willful
misconduct as determined by a court of competent jurisdiction in a final,
non-appealable judgment or from the failure by the Agent to follow the written
direction of the Requisite Lenders (or all of the Lenders if expressly required
hereunder) unless such failure results from the Agent following the advice of
counsel to the Agent of which advice the Lenders have received notice. Such
successor Agent shall issue letters of credit in substitution for the Letters
of Credit, if any, outstanding at the time of such succession or shall make
other arrangements satisfactory to the current Agent, in either case, to assume
effectively the obligations of the current Agent with respect to such Letters
of Credit. After any Agent’s resignation or removal hereunder as Agent, the
provisions of this Article XI. shall continue to inure to its benefit as
to any actions taken or omitted to be taken by it while it was Agent under the
Loan Documents.

 

81

 

Section 11.9. Titled Agents.

 

Each of the Titled
Agents in each such respective capacity, assumes no responsibility or
obligation hereunder, including, without limitation, for servicing, enforcement
or collection of any of the Loans, nor any duties as an agent hereunder for the
Lenders. The titles of “Co-Lead Arranger”, “Syndication Agent” and “Documentation
Agent” are solely honorific and imply no fiduciary responsibility on the part
of the Titled Agents to the Agent, the Borrower or any Lender and the use of
such titles does not impose on the Titled Agents any duties or obligations
greater than those of any other Lender or entitle the Titled Agents to any
rights other than those to which any other Lender is entitled.

 

ARTICLE XII. MISCELLANEOUS

 

Section 12.1. Notices.

 

Unless
otherwise provided herein, communications provided for hereunder shall be in
writing and shall be mailed, telecopied or delivered as follows:

 

If to
the Parent:

 

Corporate Office Properties Trust

6711
Columbia Gateway Drive, Suite 300

Columbia,
Maryland 21046

Attention:
General Counsel

Telephone
Number:    (443) 285-5400

Telecopy
Number:      (443) 285-7650

 

If to
the Borrower:

 

Corporate
Office Properties, L.P.

6711
Columbia Gateway Drive, Suite 300

Columbia,
Maryland 21046

Attention:
General Counsel

Telephone
Number:    (443) 285-5400

Telecopy
Number:      (443) 285-7650

 

If to
the Agent:

 

KeyBank
National Association

127 Public Square, 8th Floor

Cleveland, Ohio 
44114

Attn:  John C. Scott

Telephone:    (216)
689-5986

Telecopy:      (216)
689-4997

 

with a
copy to:

 

82

 

KeyBank
National Association

800
Superior Avenue

Cleveland,
Ohio  44114

Attn:  REC Services

Telephone:    (216)
828-7512

Telecopy:      (216)
828-7523

 

If to
a Lender:

 

To
such Lender’s address or telecopy number, as applicable, set forth in its
Administrative Questionnaire;

 

or, as to each party at
such other address as shall be designated by such party in a written notice to
the other parties delivered in compliance with this Section. All such notices
and other communications shall be effective (i) if mailed, when received; (ii) if
telecopied, when transmitted; or (iii) if hand delivered or sent by
overnight courier, when delivered. Notwithstanding the immediately preceding
sentence, all notices or communications to the Agent or any Lender under Article II.
shall be effective only when actually received or when receipt is refused. Neither
the Agent nor any Lender shall incur any liability to the Borrower (nor shall
the Agent incur any liability to the Lenders) for acting upon any telephonic
notice referred to in this Agreement which the Agent or such Lender, as the
case may be, believes in good faith to have been given by a Person authorized
to deliver such notice or for otherwise acting in good faith hereunder.

 

Section 12.2. Expenses.

 

The
Borrower agrees (a) to pay or reimburse the Agent for all of its
reasonable out-of-pocket costs and expenses incurred in connection with the
preparation, negotiation and execution of, and any amendment, supplement or
modification to, any of the Loan Documents (including due diligence expenses
and travel expenses relating to closing), and the consummation and
administration of the transactions contemplated thereby, including the reasonable
fees and disbursements of counsel to the Agent and costs and expenses in
connection with the use of Intralinks, Inc. or other similar information
transmission systems in connection with the Loan Documents, (b) to pay or
reimburse the Agent, and the Lenders for all their costs and expenses incurred
in connection with the enforcement or preservation of any rights under the Loan
Documents, including the reasonable fees and disbursements of their respective
counsel (including the allocated fees and expenses of in-house counsel) and any
payments in indemnification or otherwise payable by the Lenders to the Agent
pursuant to the Loan Documents, (c) to pay, and indemnify and hold
harmless the Agent, and the Lenders from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any failure to
pay or delay in paying, documentary, stamp, excise and other similar taxes, if
any, which may be payable or determined to be payable in connection with the
execution and delivery of any of the Loan Documents, or consummation of any
amendment, supplement or modification of, or any waiver or consent under or in
respect of, any Loan Document; and (d) to the extent not already covered
by any of the preceding subsections, to pay or reimburse the Agent, and the
Lenders for all their costs and expenses incurred in connection with any
bankruptcy or other proceeding of the type described in Sections 10.1.(f) or
10.1.(g), including the reasonable fees

 

83

 

and disbursements of
counsel to the Agent and any Lender, whether such fees and expenses are
incurred prior to, during or after the commencement of such proceeding or the
confirmation or conclusion of any such proceeding. If the Borrower shall fail
to pay any amounts required to be paid by it pursuant to this Section, the
Agent, and/or the Lenders may pay such amounts on behalf of the Borrower and
either deem the same to be Loans outstanding hereunder or otherwise Obligations
owing hereunder.

 

Section 12.3. Setoff.

 

Subject
to Section 3.3. and in addition to any rights now or hereafter granted
under Applicable Law and not by way of limitation of any such rights, the
Agent, each Lender and each Participant is hereby authorized by the Borrower,
at any time or from time to time during the continuance of an Event of Default,
without prior notice to the Borrower or to any other Person, any such notice
being hereby expressly waived, but in the case of a Lender or Participant
subject to receipt of the prior written consent of the Agent exercised in its
sole discretion, to set off and to appropriate and to apply any and all
deposits (general or special, including, but not limited to, indebtedness
evidenced by certificates of deposit, whether matured or unmatured) and any
other indebtedness at any time held or owing by the Agent, such Lender or any
affiliate of the Agent or such Lender, to or for the credit or the account of
the Borrower against and on account of any of the Obligations, irrespective of
whether or not any or all of the Loans and all other Obligations have been
declared to be, or have otherwise become, due and payable as permitted by Section 10.2.,
and although such obligations shall be contingent or unmatured.

 

Section 12.4. Litigation; Jurisdiction; Other
Matters; Waivers.

 

(a)                                  EACH PARTY HERETO ACKNOWLEDGES THAT ANY
DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR
ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND
FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT, THE PARENT
AND THE BORROWER HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE
COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS AGREEMENT, THE
NOTES, OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF
ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE PARENT, THE BORROWER, THE
AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN
DOCUMENTS.

 

(b)                                 EACH OF THE PARENT, THE BORROWER, THE
AGENT AND EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT COURT LOCATED FOR
THE SOUTHERN DISTRICT OF NEW YORK AND ANY STATE COURT LOCATED IN THE BOROUGH OF
MANHATTAN, NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE
ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR
ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE
LOANS AND LETTERS OF CREDIT, THE NOTES OR ANY OTHER LOAN DOCUMENT OR TO ANY

 

84

 

MATTER ARISING HEREFROM
OR THEREFROM. THE PARENT, THE BORROWER AND EACH OF THE LENDERS EXPRESSLY SUBMIT
AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING
COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES. EACH PARTY
FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR
PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH AGREES NOT TO PLEAD
OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT
BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR
THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH
FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

 

(c)                                  THE PROVISIONS OF THIS SECTION HAVE
BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING
OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS
AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE
TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS
AGREEMENT.

 

Section 12.5. Successors and Assigns.

 

(a)                                  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns, except that the Borrower may not
assign or otherwise transfer any of its rights or obligations under this
Agreement without the prior written consent of all Lenders and any such
assignment or other transfer to which all of the Lenders have not so consented
shall be null and void.

 

(b)                                 Each Lender shall have the right to
assign, transfer, sell, negotiate, pledge or otherwise hypothecate this
Agreement and any of its rights and security hereunder and under the other Loan
Documents to any other Eligible Assignee with the prior written consent of the
Agent and with the prior written consent of the Borrower, which consents by the
Agent and the Borrower shall not be unreasonably withheld, conditioned or
delayed (provided that no consent of the Borrower shall be required if the
Eligible Assignee is also a Lender or if an Event of Default then exists) and
no consent of the Agent shall be required if the Eligible Assignee is also a. Lender;
provided, however, that (i) the parties to each such assignment shall
execute and deliver to Agent, for its approval and acceptance, an Assignment
and Acceptance Agreement, (ii) each such assignment shall be of a
constant, and not a varying, percentage of the assigning Lender’s rights and
obligations under this Agreement, (iii) if the potential assignee is not
already a Lender hereunder, at least ten (10) days prior to the date of
the assignment, the potential assignee shall deliver to Agent the fully
completed Patriot Act and OFAC forms attached as Exhibit K hereto and such
other information as Agent shall require to successfully complete the Agent’s
Patriot Act Customer Identification Process and OFAC Review Process, (iv) unless
the Agent and, so long as no Event of Default exists, the Borrower otherwise
consent, the aggregate amount of the Commitment of the assigning Lender being
assigned pursuant to each such assignment shall in no event be less than
$10,000,000, (v) the Agent shall receive from the

 

85

 

assigning Lender a
processing fee of $3,500, and (vi) if the assignment is less than the
assigning Lender’s entire Commitment, the assigning Lender must retain at least
a $10,000,000 Commitment. The Agent may designate any Eligible Assignee
accepting an assignment of a specified portion of the Loan to be a Co-Agent, an
“Arranger” or similar title, but such designation shall not confer on such
Eligible Assignee the rights or duties of the Agent. Upon such execution,
delivery, approval and acceptance, and upon the effective date specified in the
applicable Assignment and Acceptance Agreement, (x) the Eligible Assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance Agreement, have the rights and obligations of a Lender hereunder and
under the other Loan Documents, and the Borrower hereby agrees that all of the
rights and remedies of Lenders in connection with the interest so assigned
shall be enforceable against the Borrower by an Eligible Assignee with the same
force and effect and to the same extent as the same would have been enforceable
but for such assignment, and (y) the assigning Lender thereunder shall, to
the extent that rights and obligations hereunder and under the other Loan
Documents have been assigned by it pursuant to such Assignment and Acceptance
Agreement, relinquish its rights and be released from its obligations hereunder
and thereunder.

 

(c)                                  By executing and delivering an Assignment
and Acceptance Agreement, the assigning Lender thereunder and the Eligible
Assignee thereunder confirm to and agree with each other and the other parties
hereto as follows: (i) except as provided in such Assignment and
Acceptance Agreement, such assigning Lender and Agent make no representation or
warranty and assume no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
any other Loan Document or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Loan Document
or any other instrument or document furnished in connection therewith; (ii) such
assigning Lender and the Agent make no representation or warranty and assume no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under any
Loan Document or any other instrument or document furnished in connection
therewith; (iii) such Eligible Assignee confirms that it has received a
copy of this Agreement together with such financial statements, Loan Documents
and other documents and information as it has deemed appropriate to make its
own independent credit analysis and decision to enter into the Assignment and
Acceptance Agreement and to become a Lender hereunder; (iv) such Eligible
Assignee will, independently and without reliance upon Agent, the assigning
Lender or any other Lender, and based on such documents and information as it
shall deem appropriate at the time continue to make its own independent credit
decisions in taking or not taking action under this Agreement; (v) such
Eligible Assignee appoints and authorizes the Agent to take such action as the
Agent on its behalf and to exercise such powers under. this Agreement
and the other Loan Documents as are delegated to Agent by the terms hereof and
thereof, together with such powers as are reasonably incidental thereto; and (vi) such
Eligible Assignee agrees that it will perform in accordance with their terms
all of the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

 

(d)                                 Agent shall maintain a copy of each
Assignment and Acceptance Agreement delivered to and accepted by it and shall
record in its records the name and address of each

 

86

 

Lender and the Commitment
of such Lender from time to time. The Borrower, the Agent and the Lenders may
treat each entity whose name is so recorded as a Lender hereunder for all
purposes of this Agreement. In the case of any assignment by a Lender, within
five Business Days after its receipt of written notice of such assignment, the
Borrower, at its own expense, shall, if requested by the applicable Lender,
execute and deliver to the Agent in exchange for the surrendered Note or Notes a
new Note to the order of such Eligible Assignee in an amount equal to the
Commitment assumed by it pursuant to such Assignment and Acceptance Agreement
and, if any assigning Lender has retained a Commitment hereunder, a new Note to
the order of such assigning Lender in an amount equal to the Commitment
retained by it hereunder. Such new Note or Notes, if any, shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Note or Notes and shall be dated the effective date of such
Assignment and Acceptance.

 

(e)                                  Upon receipt of an Assignment and
Acceptance Agreement executed by an assigning Lender and an Eligible Assignee,
Agent shall, if such Assignment and Acceptance Agreement has been properly
completed and consented to if required herein, accept such Assignment and
Acceptance Agreement, and record the information contained therein in its
records, and the Agent shall give prompt written notice thereof to the Borrower
(provided that neither the Agent nor the Lenders shall be liable for any
failure to give such notice).

 

(f)                                    The Borrower shall use reasonable efforts
to cooperate with the Agent and each Lender in connection with the assignment
of interest under this Agreement or the sale of participations herein.

 

(g)                                 Anything in this Agreement to the
contrary notwithstanding, and without the need to comply with any of the formal
or procedural requirements of this Agreement, including this Section, any
Lender may at any time and from time to time pledge and assign all or any
portion of its rights under all or any of the Loan Documents to a Federal
Reserve Bank; provided that no such pledge or assignment shall release such
Lender from its obligations hereunder or increase the Borrower’s or any other
Loan Party’s obligations hereunder. To facilitate any such pledge or
assignment, the Agent shall, at the request of such Lender, enter into a letter
agreement with the Federal Reserve Bank in, or substantially in, the form of
the exhibit to Appendix C to the Federal Reserve Bank of New York Operating
Circular No. 12, or other applicable form.

 

(h)                                 Anything in this Agreement to the
contrary notwithstanding, any Lender may assign all or any portion of its
rights and obligations under this Agreement to another branch or affiliate of
such Lender without first obtaining the approval of any Agent or the Borrower,
provided that (i) such Lender remains liable hereunder unless the Borrower
and the Agent shall otherwise agree, (ii) at the time of such assignment
such Lender is not a Defaulting Lender, (iii) such Lender gives the Agent
and the Borrower at least fifteen (15) days prior written notice of any such
assignment; (iv) the parties to each such assignment execute and deliver
to the Agent an Assignment and Acceptance Agreement, and (v) the Agent
receives from the assigning Lender a processing fee of $1,500.

 

(i)                                     Each Lender shall have the right, without
the consent of the Borrower, to sell participations to one or more Eligible
Assignees (each a “Participant”) in or to all or a portion of

 

87

 

its rights and
obligations under the Loan Documents; provided, however, that (i) such
Lender’s obligations under this Agreement (including without limitation its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) the Borrower, the Agent and the
other Lenders shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement and with regard
to any and all payments to be made under this Agreement and (iv) the
holder of any such participation shall not be entitled to voting rights under
this Agreement or the other Loan Documents (but such holder may contract with
the Lender selling such Eligible Assignee its interest in such Lender’s share
of the Loan as to voting of such Lender’s interest under Section 12.6.(b),
but not under any other section of this Agreement; provided that any such
agreement by a Lender shall bind only such Lender alone and not the Borrower,
the other Lenders or the Agent).

 

(j)                                     No Eligible Assignee of any rights and
obligations under this Agreement shall be permitted to subassign such rights
and obligations. No Participant in any rights and obligations under this
Agreement shall be permitted to sell subparticipations of such rights and
obligations.

 

(k)                                  Each of the Parent and the Borrower
acknowledges and agrees that the Lenders may provide to any Eligible Assignee
or Participant originals or copies of this Agreement, any other Loan Document
and any other documents, instruments, certificates, opinions, insurance
policies, letters of credit, reports, requisitions and other material and information
of every nature or description, and may communicate all oral information, at
any time submitted by or on behalf of any Loan Party or received by any Lender
in connection with the Loan Documents or with respect to any Loan Party;
provided that prior to any such delivery or communication, such Eligible
Assignees or Participants shall agree to preserve the confidentiality of any of
the foregoing to the same extent that such Lender agreed to preserve such
confidentiality. In order to facilitate assignments to Eligible Assignees and
sales to Eligible Assignees, the Borrower shall execute such further documents,
instruments or agreements as the Lenders may reasonably require; provided, that
the Borrower shall not be required (i) to execute any document or agreement
which would decrease its rights, or increase its obligations, relative to those
set forth in this Agreement or any of the other Loan Documents (including
financial obligations, personal recourse, representations and warranties and
reporting requirements), or (ii) to expend more than incidental sums of
money or incidental administrative time for which it does not receive
reasonable reimbursement in order to comply with any requests or requirements
of any Lender in connection with such assignment or sale arrangement.

 

Section 12.6. Amendments.

 

(a)                                  Except as otherwise expressly provided in
this Agreement, any consent or approval required or permitted by this Agreement
or any other Loan Document to be given by the Lenders may be given, and any
term of this Agreement or of any other Loan Document may be amended, and the
performance or observance by the Borrower or any other Loan Party or any
Subsidiary of any terms of this Agreement or such other Loan Document or the
continuance of any Default or Event of Default may be waived (either generally
or in a particular instance and either retroactively or prospectively) with,
but only with, the written consent of the Requisite Lenders (and, in the case
of an amendment to any Loan Document, the written consent of each Loan Party a
party thereto).

 

88

 

(b)                                 Notwithstanding the foregoing, without
the prior written consent of each Lender adversely affected thereby, no
amendment, waiver or consent shall do any of the following:

 

(i)                                     increase the Commitments of the Lenders
(except for any increase in the Commitments effectuated pursuant to Section 2.15.)  or subject the Lenders to any additional
obligations;

 

(ii)                                  reduce the principal of, or interest
rates that have accrued or that will be charged on the outstanding principal
amount of, any Loans or other Obligations;

 

(iii)                               reduce the amount of any Fees payable hereunder or
postpone any date fixed for payment thereof;

 

(iv)                              modify the definition of the term “Termination
Date” (except as contemplated under Section 2.12.) or otherwise postpone
any date fixed for any payment of any principal of, or interest on, any Loans
or any other Obligations (including the waiver of any Default or Event of
Default as a result of the nonpayment of any such Obligations as and when due),
or extend the expiration date of any Letter of Credit beyond the Termination
Date;

 

(v)                                 amend or otherwise modify the provisions
of Section 3.2.;

 

(vi)                              modify the definition of the term “Requisite
Lenders” or otherwise modify in any other manner the number or percentage of
the Lenders required to make any determinations or waive any rights hereunder
or to modify any provision hereof, including without limitation, any
modification of this Section 12.6. if such modification would have such
effect;

 

(vii)                           release any Guarantor from its obligations under the
Guaranty (except as otherwise permitted under Section 7.12.(b));

 

(viii)                        amend or otherwise modify the provisions of Section 2.14.
or Section 10.4.; or

 

(ix)                                increase the number of Interest Periods
permitted with respect to Loans under Section 2.5.

 

(c)                                  No amendment, waiver or consent, unless
in writing and signed by the Agent, in such capacity, in addition to the
Lenders required hereinabove to take such action, shall affect the rights or
duties of the Agent under this Agreement or any of the other Loan Documents. Any
amendment, waiver or consent relating to Section 2.2. or the obligations
of the Swingline Lender under this Agreement or any other Loan Document shall,
in addition to the Lenders required hereinabove to take such action, require
the written consent of the Swingline Lender.

 

89

 

(d)                                 No waiver shall extend to or affect any
obligation not expressly waived or impair any right consequent thereon and any
amendment, waiver or consent shall be effective only in the specific instance
and for the specific purpose set forth therein. No course of dealing or delay
or omission on the part of the Agent or any Lender in exercising any right
shall operate as a waiver thereof or otherwise be prejudicial thereto. Any
Event of Default occurring hereunder shall continue to exist until such time as
such Event of Default is waived in writing in accordance with the terms of this
Section, notwithstanding any attempted cure or other action by the Borrower,
any other Loan Party or any other Person subsequent to the occurrence of such
Event of Default. Except as otherwise explicitly provided for herein or in any
other Loan Document, no notice to or demand upon the Borrower shall entitle the
Borrower to any other or further notice or demand in similar or other
circumstances.

 

Section 12.7. Nonliability of Agent and Lenders.

 

The
relationship between the Borrower and the Lenders and the Agent shall be solely
that of borrower and lender. Neither the Agent nor any Lender shall have any
fiduciary responsibilities to the Parent or the Borrower and no provision in
this Agreement or in any of the other Loan Documents, and no course of dealing
between or among any of the parties hereto, shall be deemed to create any
fiduciary duty owing by the Agent or any Lender to any Lender, the Parent, the
Borrower, any Subsidiary of the Parent or the Borrower or any other Loan Party.
Neither the Agent nor any Lender undertakes any responsibility to the Borrower
or the Parent to review or inform the Borrower or the Parent of any matter in
connection with any phase of the Borrower’s or Parent’s business or operations.

 

Section 12.8. Confidentiality.

 

The Agent and each
Lender shall use reasonable efforts to assure that information about the
Borrower, the Parent, the other Loan Parties and other Subsidiaries of the
Parent and the Borrower, and the Properties thereof and their operations,
affairs and financial condition, not generally disclosed to the public, which
is furnished to the Agent or any Lender pursuant to the provisions of this
Agreement or any other Loan Document, is used only for the purposes of this
Agreement and the other Loan Documents and shall not be divulged to any Person
other than the Agent, the Lenders, and their respective agents who are actively
and directly participating in the evaluation, administration or enforcement of
the Loan Documents and other transactions between the Agent or such Lender, as
applicable, and the Borrower and the Parent, but in any event the Agent and the
Lenders may make disclosure: (a) to any of their respective affiliates
(provided such affiliates shall agree to keep such information confidential in
accordance with the terms of this Section 12.8.); (b) as reasonably
requested by any bona fide Eligible Assignee, Participant or other transferee
in connection with the contemplated transfer of any Commitment or
participations therein as permitted hereunder (provided they shall agree to
keep such information confidential in accordance with the terms of this
Section); (c) as required or requested by any Governmental Authority or
representative thereof or pursuant to legal process or in connection with any
legal proceedings; (d) to the Agent’s or such Lender’s independent
auditors and other professional advisors (provided they shall be notified of
the confidential nature of the information); (e) after the happening and
during the continuance of an Event of Default, to any other Person, in
connection with the exercise by the Agent or the Lenders of rights hereunder or
under any of the other Loan Documents; (f) upon Borrower’s prior consent

 

90

 

(which consent shall not
be unreasonably withheld), to any contractual counter-parties to any swap or
similar hedging agreement or to any rating agency; and (g) to the extent
such information (x) becomes publicly available other than as a result of
a breach of this Section actually known to such Lender to be such a breach
or (y) becomes available to the Agent or any Lender on a nonconfidential
basis from a source other than the Parent, the Borrower or any Affiliate. Notwithstanding
the foregoing, the Agent and each Lender may disclose any such confidential
information, upon notice to the Borrower or any other Loan Party, to the extent
practicable (provided, that, any failure by the Agent or any Lender to give
such notice to the Borrower or any Loan Party shall not subject the Agent or
any Lender to any liability which may arise from such failure to give notice),
to Governmental Authorities in connection with any regulatory examination of
the Agent or such Lender or in accordance with the regulatory compliance policy
of the Agent or such Lender.

 

Section 12.9. Indemnification.

 

(a)                                  The Borrower shall and hereby agrees to
indemnify, defend and hold harmless the Agent, each of the Lenders, any
affiliate of the Agent or any Lender, and their respective directors, officers,
shareholders, agents, employees and counsel (each referred to herein as an “Indemnified
Party”) from and against any and all of the following (collectively, the “Indemnified
Costs”):  losses, costs, claims, damages,
liabilities, deficiencies, judgments or expenses of every kind and nature
(including, without limitation, amounts paid in settlement, court costs and the
reasonable fees and disbursements of counsel incurred in connection with any
litigation, investigation, claim or proceeding or any advice rendered in
connection therewith, but excluding losses, costs, claims, damages,
liabilities, deficiencies, judgments or expenses indemnification in respect of
which is specifically covered by Section 3.12. or 4.1. or expressly
excluded from the coverage of such Sections 3.12. or 4.1.) incurred by an
Indemnified Party in connection with, arising out of, or by reason of, any
suit, cause of action, claim, arbitration, investigation or settlement, consent
decree or other proceeding (the foregoing referred to herein as an “Indemnity
Proceeding”) which is in any way related directly or indirectly to: (i) this
Agreement or any other Loan Document or the transactions contemplated thereby; (ii) the
making of any Loans or issuance of Letters of Credit hereunder; (iii) any
actual or proposed use by the Borrower of the proceeds of the Loans or Letters
of Credit; (iv) the Agent’s or any Lender’s entering into this Agreement; (v) the
fact that the Agent and the Lenders have established the credit facility
evidenced hereby in favor of the Borrower; (vi) the fact that the Agent
and the Lenders are creditors of the Borrower and have or are alleged to have
information regarding the financial condition, strategic plans or business
operations of the Parent, the Borrower and their respective Subsidiaries; (vii) the
fact that the Agent and the Lenders are material creditors of the Borrower and
are alleged to influence directly or indirectly the business decisions or
affairs of the Parent, the Borrower and their respective Subsidiaries or their
financial condition; (viii) the exercise of any right or remedy the Agent
or the Lenders may have under this Agreement or the other Loan Documents; (ix) any
civil penalty or fine assessed by the OFAC against, and all reasonable costs
and expenses (including counsel fees and disbursements) incurred in connection
with defense thereof by, the Agent or any Lender as a result of conduct of the
Borrower, any other Loan Party or any Subsidiary that violates a sanction
enforced by the OFAC; or (x) any violation or non-compliance by the
Parent, the Borrower or any Subsidiary of any Applicable Law (including any
Environmental Law) including, but not limited to, any Indemnity Proceeding
commenced by (A) the Internal Revenue Service or state taxing authority

 

91

 

or (B) any
Governmental Authority or other Person under any Environmental Law, including
any Indemnity Proceeding commenced by a Governmental Authority or other Person
seeking remedial or other action to cause the Parent, the Borrower or their
respective Subsidiaries (or its respective properties) (or the Agent and/or the
Lenders as successors to the Borrower) to be in compliance with such
Environmental Laws; provided, however, that the Borrower shall not be obligated
to indemnify any Indemnified Party for (A) any acts or omissions of such
Indemnified Party in connection with matters described in this subsection to
the extent arising from the gross negligence or willful misconduct of such
Indemnified Party, as determined by a court of competent jurisdiction in a
final, non-appealable judgment or (B) Indemnified Costs to the extent
arising directly out of or resulting directly from claims of one or more
Indemnified Parties against another Indemnified Party.

 

(b)                                 The Borrower’s indemnification
obligations under this Section 12.9. shall apply to all Indemnity
Proceedings arising out of, or related to, the foregoing whether or not an
Indemnified Party is a named party in such Indemnity Proceeding. In this
regard, this indemnification shall cover all Indemnified Costs of any
Indemnified Party in connection with any deposition of any Indemnified Party or
compliance with any subpoena (including any subpoena requesting the production
of documents). This indemnification shall, among other things, apply to any
Indemnity Proceeding commenced by other creditors of the Parent, the Borrower
or any Subsidiary, any shareholder of the Parent, the Borrower or any
Subsidiary (whether such shareholder(s) are prosecuting such Indemnity
Proceeding in their individual capacity or derivatively on behalf of the
Borrower or the Parent), any account debtor of the Parent, the Borrower or any
Subsidiary or by any Governmental Authority. If indemnification is to be sought
hereunder by an Indemnified Party, then such Indemnified Party shall notify the
Borrower in writing of the commencement of any Indemnity Proceeding; provided,
however, that the failure to so notify the Borrower shall not relieve the
Borrower from any liability that it may have to such Indemnified Party pursuant
to this Section 12.9.

 

(c)                                  This indemnification shall apply to any
Indemnity Proceeding arising during the pendency of any bankruptcy proceeding
filed by or against the Parent, the Borrower and/or any Subsidiary.

 

(d)                                 All out-of-pocket fees and expenses of,
and all amounts paid to third-persons by, an Indemnified Party shall be
advanced by the Borrower at the request of such Indemnified Party
notwithstanding any claim or assertion by the Borrower that such Indemnified
Party is not entitled to indemnification hereunder, upon receipt of an
undertaking by such Indemnified Party that such Indemnified Party will
reimburse the Borrower if it is actually and finally determined by a court of
competent jurisdiction that such Indemnified Party is not so entitled to
indemnification hereunder.

 

(e)                                  An Indemnified Party may conduct its own
investigation and defense of, and may formulate its own strategy with respect
to, any Indemnity Proceeding covered by this Section and, as provided
above, all Indemnified Costs incurred by such Indemnified Party shall be
reimbursed by the Borrower. No action taken by legal counsel chosen by an
Indemnified Party in investigating or defending against any such Indemnity
Proceeding shall vitiate or in any way impair the obligations and duties of the
Borrower hereunder to indemnify and hold harmless each

 

92

 

such Indemnified Party;
provided, however, that if (i) the Borrower is required to indemnify an
Indemnified Party pursuant hereto and (ii) the Borrower has provided
evidence reasonably satisfactory to such Indemnified Party that the Borrower
has the financial wherewithal to reimburse such Indemnified Party for any
amount paid by such Indemnified Party with respect to such Indemnity Proceeding,
such Indemnified Party shall not settle or compromise any such Indemnity
Proceeding without the prior written consent of the Borrower (which consent
shall not be unreasonably withheld or delayed). Notwithstanding the foregoing,
an Indemnified Party may settle or compromise any such Indemnity Proceeding
without the prior written consent of the Borrower where (x) no monetary
relief is sought against such Indemnified Party in such Indemnity Proceeding or
(y) there is an allegation of a violation of law by such Indemnified
Party.

 

(f)                                    If and to the extent that the obligations
of the Borrower under this Section are unenforceable for any reason, the
Borrower hereby agrees to make the maximum contribution to the payment and
satisfaction of such obligations which is permissible under Applicable Law.

 

(g)                                 The Borrower’s obligations under this Section shall
survive any termination of this Agreement and the other Loan Documents and the
payment in full in cash of the Obligations, and are in addition to, and not in
substitution of, any other of their obligations set forth in this Agreement or
any other Loan Document to which it is a party.

 

Section 12.10. Termination; Survival.

 

At
such time as (a) all of the Commitments have been terminated, (b) all
Letters of Credit have terminated, (c) none of the Lenders nor the
Swingline Lender is obligated any longer under this Agreement to make any Loans
and (d) all Obligations (other than obligations which survive as provided
in the following sentence) have been paid and satisfied in full, this Agreement
shall terminate. The indemnities to which the Agent, the Lenders and the
Swingline Lender are entitled under the provisions of Sections 3.12.,
4.1., 4.4., 11.7., 12.2. and 12.9. and any other provision of this Agreement and
the other Loan Documents, and the provisions of Section 12.4., shall
continue in full force and effect and shall protect the Agent, the Lenders and
the Swingline Lender (i) notwithstanding any termination of this
Agreement, or of the other Loan Documents, against events arising before such
termination as well as, in the case of Sections 11.7., 12.4. and 12.9., after
such termination and (ii) at all times after any such party ceases to be a
party to this Agreement with respect to all matters and events existing on or
prior to the date such party ceased to be a party to this Agreement.

 

Section 12.11. Severability of Provisions.

 

Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating the remainder of
such provision or the remaining provisions or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

93

 

Section 12.12. GOVERNING LAW.

 

THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY
PERFORMED, IN SUCH STATE.

 

Section 12.13. Counterparts.

 

This
Agreement and any amendments, waivers, consents or supplements may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an original,
but all of which counterparts together shall constitute but one and the same
instrument.

 

Section 12.14. Obligations with Respect to Loan
Parties.

 

The
obligations of the Parent and the Borrower to direct or prohibit the taking of
certain actions by the other Loan Parties as specified herein shall be absolute
and not subject to any defense the Parent or the Borrower may have that the
Parent or the Borrower does not control such Loan Parties.

 

Section 12.15. Limitation of Liability.

 

Neither
the Agent nor any Lender, nor any affiliate, officer, director, employee,
attorney, or agent of the Agent or any Lender shall have any liability with
respect to, and the Parent and the Borrower hereby waives, releases, and agrees
not to sue any of them upon, any claim for any special, indirect, incidental,
or consequential damages suffered or incurred by the Parent or the Borrower in
connection with, arising out of, or in any way related to, this Agreement or
any of the other Loan Documents, or any of the transactions contemplated by
this Agreement or any of the other Loan Documents. Each of the Parent and the
Borrower hereby waives, releases, and agrees not to sue the Agent or any Lender
or any of the Agent’s or any Lender’s affiliates, officers, directors, employees,
attorneys, or agents for punitive damages in respect of any claim in connection
with, arising out of, or in any way related to, this Agreement or any of the
other Loan Documents, or any of the transactions contemplated by this Agreement
or financed hereby.

 

Section 12.16. Entire Agreement.

 

This
Agreement, the Notes, and the other Loan Documents referred to herein embody
the final, entire agreement among the parties hereto and supersede any and all
prior commitments, agreements, representations, and understandings, whether
written or oral, relating to the subject matter hereof and thereof and may not
be contradicted or varied by evidence of prior, contemporaneous, or subsequent
oral agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto.

 

Section 12.17. Construction.

 

The
Agent, the Borrower, the Parent and each Lender acknowledge that each of them
has had the benefit of legal counsel of its own choice and has been afforded an
opportunity to review

 

94

 

this Agreement and the
other Loan Documents with its legal counsel and that this Agreement and the
other Loan Documents shall be construed as if jointly drafted by the Agent, the
Borrower, the Parent and each Lender.

 

Section 12.18. Patriot Act.

 

The
Lenders and the Agent each hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or the Agent, as applicable, to identify the Borrower in accordance with such
Act.

 

Section 12.19. No Novation.

 

THE PARTIES HERETO HAVE ENTERED INTO THIS AGREEMENT
SOLELY TO AMEND AND RESTATE THE TERMS OF THE EXISTING CREDIT AGREEMENT. THE
PARTIES DO NOT INTEND THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY TO
BE, AND THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE
CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWER
UNDER OR IN CONNECTION WITH THE EXISTING CREDIT AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS (AS DEFINED IN THE EXISTING CREDIT AGREEMENT). THE AMENDMENT AND
RESTATEMENT OF THE EXISTING CREDIT AGREEMENT EFFECTED BY THIS AGREEMENT SHALL
HAVE PROSPECTIVE APPLICATION ONLY.

 

[Signatures on Following Pages]

 

95

 

IN WITNESS WHEREOF, the parties hereto have caused
this Second Amended and Restated Credit Agreement to be executed by their
authorized officers all as of the day and year first above written.

 

 

	
  

  	
  CORPORATE OFFICE PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Corporate Office Properties Trust, its

  
	
   

  	
   

  	
  sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen E. Riffee

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Stephen E. Riffee

  
	
   

  	
   

  	
   

  	
  Title: Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CORPORATE OFFICE PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen E. Riffee

  	
   

  
	
   

  	
   

  	
  Name: Stephen E. Riffee

  
	
   

  	
   

  	
  Title: Executive Vice President

  

 

[Signatures
Continued Next Page]

 

 

[Signature
Page to Second Amended and Restated Credit Agreement with Corporate Office
Properties, L.P.]

 

	
  

  	
  KEYBANK NATIONAL ASSOCIATION, as Agent, as a

  Lender and as Swingline Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Scott

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Scott

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amit Khimji

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Amit Khimji

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Mokelke

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark A. Mokelke

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIZENS BANK OF PENNNSYLVANIA

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kellie Anderson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kellie Anderson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANUFACTURERS AND TRADERS TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew Lind

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Matthew Lind

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nancy B. Richards

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nancy B. Richard

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
							

 

 

	
  

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy P. Gleeson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Timothy P. Gleeson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REGIONS BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kerri Raines

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kerri Raines

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA BANK.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam Sheets

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Adam Sheets

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edmond K. Delany

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edmond K. Delany

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHEVY CHASE BANK, F.S.B.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dory Halati

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dory Halati

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
									

 

 

SCHEDULE I

 

Commitments

 

	
  Lender

  	
   

  	
  Revolving Commitment

  	
   

  
	
  KeyBank National
  Association

  	
   

  	
  $

  	
  100,000,000

  	
   

  
	
  Wachovia Bank,
  National Association

  	
   

  	
  $

  	
  75,000,000

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  75,000,000

  	
   

  
	
  Manufacturers
  and Traders Trust Company

  	
   

  	
  $

  	
  75,000,000

  	
   

  
	
  Citizens Bank of
  Pennsylvania

  	
   

  	
  $

  	
  75,000,000

  	
   

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  PNC Bank,
  National Association

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  Regions Bank

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  Comerica Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  Union Bank of
  California, N.A.

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  Chevy Chase
  Bank, F.S.B.

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  600,000,000

  	
   

  

 

 

SCHEDULE
1.1(A)

 

List
of Loan Parties

 

	
  Name

  	
   

  	
  Jurisdiction of Formation

  	
   

  	
  Jurisdictions of Foreign

  Qualification

  
	
  Borrower

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Office Properties, L.P.

  	
   

  	
  Delaware

  	
   

  	
  Maryland, New Jersey Pennsylvania, and Virginia

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Parent

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Office Properties Trust

  	
   

  	
  Maryland

  	
   

  	
  Pennsylvania

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Material
  Subsidiaries

  	
   

  	
   

  	
   

  	
   

  
	
  Blue Bell Investment Company, L.P.

  	
   

  	
  Delaware

  	
   

  	
  Pennsylvania

  
	
  NBP 220, LLC

  	
   

  	
  Maryland

  	
   

  	
  N/A

  

 

 

Schedule 6.1(b) Part 1

Ownership Structure
- All Subsidiaries

Current  as of September 19, 2007

 

	
  Name

  	
   

  	
  Jurisdiction

  	
   

  	
  Person Holding an Equity Interest

  	
   

  	
  Nature of Interests

  Held

  	
   

  	
  Percentage

  Ownership

  	
   

  	
  Excluded

  or

  Material

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business Trusts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  W&M Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Sole Shareholder &
  Trustee

  	
   

  	
  100

  	
  %

  	
   

  
	
  37 Allegheny Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Sole Shareholder &
  Trustee

  	
   

  	
  100

  	
  %

  	
   

  
	
  2500 Riva Trust

  	
   

  	
  Maryland

  	
   

  	
  Riva Trustee. LLC

  	
   

  	
  Sole Trustee

  	
   

  	
  100

  	
  %

  	
   

  
	
  8027 Corporate Drive
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  8029 Corporate Drive
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  10521 Red Run Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Allegheny Parking Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Babcock Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Campbell Boulevard I
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Campbell Boulevard II
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Campbell Building Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties,
  L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Campbell Corporate Center
  I-2 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Place I Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Place III
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Place IV Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Franklin Ridge No. 1
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Franklin Ridge No. 2
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Franklin Ridge No. 3
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Franklin Ridge No. 4
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Franklin Ridge V Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Franklin Ridge Open Space
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Lot 401 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  McLean Ridge I Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  McLean Ridge II Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  McLean Ridge III Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  McLean Ridge IV Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  McLean Ridge V Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Nottingham Ridge I Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Nottingham Ridge II Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Nottingham Ridge III
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Nottingham Ridge
  No. 20 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Nottingham Ridge
  No. 30 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Philadelphia Road Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ridgely’s Choice Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Royston Building Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge I Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Tyler Ridge Limited
  Partnership

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge II Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge II A Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge II Improvements
  Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge III Business
  Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge III
  Improvements Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridge Water
  Management Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  White Marsh Business Center
  2 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business
  Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  White Marsh Commerce Center
  I Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  

 

1

 

	
  Name

  	
   

  	
  Jurisdiction

  	
   

  	
  Person Holding an Equity Interest

  	
   

  	
  Nature of Interests

  Held

  	
   

  	
  Percentage

  Ownership

  	
   

  	
  Excluded

  or

  Material

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  White Marsh Commerce Center II Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  White Marsh Hi-Tech 1 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  While Marsh Hi-Tech 2 Business Trust

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Shareholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Limited & General Partnerships

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blue Bell Investment Company. L.P.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  General Partner

  	
   

  	
  0.10

  	
  %

  	
  Material

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99.99

  	
  %

  	
   

  
	
  Centerpointe Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  COPT Hunt Valley GP, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Colgatedrive Associates, L.P.

  	
   

  	
  Pennsylvania

  	
   

  	
  COPT Colgate General, LLC.

  	
   

  	
  General Partner

  	
   

  	
  0.10

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99.99

  	
  %

  	
   

  
	
  Corporate Center I Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Center I, LLC

  	
   

  	
  General Partner

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Office Properties, L.P.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties Trust

  	
   

  	
  General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See partnership documents

  	
   

  	
  Limited Partners

  	
   

  	
   

  	
   

  	
   

  
	
  COPT Gateway. L.P.

  	
   

  	
  DE

  	
   

  	
  Corporate Office Properties Holdings. Inc.

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  COPT Pennlyn. L.P.

  	
   

  	
  PA

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  COPT San Antonio. L.P.

  	
   

  	
  Texas

  	
   

  	
  COPT San Antonio General, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Honeygo Limited Partnership I, LLLP

  	
   

  	
  Maryland

  	
   

  	
  Professional Center I, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Honeygo Limited Partnership II, LLLP

  	
   

  	
  Maryland

  	
   

  	
  White Marsh Professional Center II, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Honeygo Limited Partnership III, LLLP

  	
   

  	
  Maryland

  	
   

  	
  Professional Center III. LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Hunt Valley 75 Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  COPT Hunt Valley GP, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Nottingham Associates Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  Nottingham Center, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  55.3

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  43.7

  	
  %

  	
   

  
	
  Rutherford 2 Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  COPT General. LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Sandpiper Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  General Partner

  	
   

  	
  40

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  60

  	
  %

  	
   

  
	
  South Brunswick Investors, L.P.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties Holdings Inc.

  	
   

  	
  General Partner

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tyler Ridqe Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  Tyler Ridge 1, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  White Marsh Business Center Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  White Marsh Business Center, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  White Marsh Health Center Limited Partnership, LLLP

  	
   

  	
  Maryland

  	
   

  	
  Sandpiper Limited Partnership

  	
   

  	
  General Partner

  	
   

  	
  72.50

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  W & M Business Trust

  	
   

  	
  Limited Partner

  	
   

  	
  27.50

  	
  %

  	
   

  
	
  201 International Associales Limited Partnership

  	
   

  	
  Maryland

  	
   

  	
  COPT Hunt Valley GP, LLC

  	
   

  	
  General Partner

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99

  	
  %

  	
   

  
	
  Corporations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Office Management, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  sole stockholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties Trust

  	
   

  	
  sole stockholder

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Acquisitions, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties Trust

  	
   

  	
  sole stockholder

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Limited Liability Companies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASI, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square Holdings I, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Aerolech Manager. LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  70

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Airport Square Partners, LLC

  	
   

  	
  Member

  	
   

  	
  30

  	
  %

  	
   

  
	
  Airport Square II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square IV, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square V, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square X, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XI, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XIII, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XIV, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XV, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XIX, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XX, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Sauare XXI, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square XXII, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square Holdings I, LLC

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square Holdings VI and VII, LLC

  	
   

  	
  Delaware

  	
   

  	
  Airport Square Partners, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square Partners, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Airport Square Storms, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ambassador Center, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Atrium Building, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Clarks Hundred, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P,

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Clarks Hundred II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Columbia Equity Finance, LLC

  	
   

  	
  Maryland

  	
   

  	
  Rivers Center III Investors, LLC

  	
   

  	
  Member

  	
   

  	
  25

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Woods Investors, LLC

  	
   

  	
  Member

  	
   

  	
  75

  	
  %

  	
   

  
	
  Columbia Gateway S-28, LLC.

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Commons Office Research, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Commons Office 6-B, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Concourse 1304, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  

 

2

 

 

	
  Name

  	
   

  	
  Jurisdiction

  	
   

  	
  Person Holding an Equity Interest

  	
   

  	
  Nature of Interests

  Held

  	
   

  	
  Percentage

  Ownership

  	
   

  	
  Excluded

  or

  Material

  
	
  COPT Aberdeen, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Aerotech, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99.5

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Aerotech Manager

  	
   

  	
  Member

  	
   

  	
  0.5

  	
  %

  	
   

  
	
  COPT Arundel Preserve, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Baltimore County I, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Baltimore County II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Chantilly, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Chantilly II, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Colgate General, LLC

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99.99

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  Member

  	
   

  	
  0.01

  	
  %

  	
   

  
	
  COPT Concourse, LLC

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Dahlgren, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Dahlgren I, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  Member

  	
   

  	
  0.1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99.99

  	
  %

  	
   

  
	
  COPT Dahlgren II, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Dahlgren IV, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  Member

  	
   

  	
  1

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99.99

  	
  %

  	
   

  
	
  COPT Dahlgren Land, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Development & Construction Services,
  LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Environmental Systems, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Gate 63, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Gate 6700-6708-6724, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT General, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Greens 1, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporele Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Greens II, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Greens III, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Hunl Valley GP, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Indian Head, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Interquest, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Interquest 111, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Interquest IV, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Montpelier, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  77

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, Trust

  	
   

  	
  Member

  	
   

  	
  23

  	
  %

  	
   

  
	
  COPT Newport, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99.90

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  Member

  	
   

  	
  0.10

  	
  %

  	
   

  
	
  COPT Newport C, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Newport D, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Northcreek, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  89.50

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Northcreek Manager, LLC

  	
   

  	
  Member

  	
   

  	
  0.50

  	
  %

  	
   

  
	
  COPT Park Meadow, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Parkstone, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Patriot Park I, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Patriot Park II, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Patriot Park at Galley, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Properly Management Services, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Princeton South, LLC

  	
   

  	
  New Jersey

  	
   

  	
  Corporals Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Renovation, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Richmond I, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Ridgeview I, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Ridgeview II & III, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Riverwood, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT San Antonio General, LLC

  	
   

  	
  Texas

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Southwest VA, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Sunrise, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Stonecroft, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT T-11, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Waterview I, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  COPT Waterview III, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Cornucopia Holdings, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Cornucopia Holdings II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Center I, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Development Services, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Management, Inc.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Galespring, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Galespring II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Office Services, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Paragon, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Management, Inc.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Place B Equity Affiliates, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Corporate Property, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Crown Point, L.L.C

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99.99

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties Holdings, Inc.

  	
   

  	
  Member

  	
   

  	
  0.10

  	
  %

  	
   

  
	
  Delaware Airport III, LLC

  	
   

  	
  Delaware

  	
   

  	
  Airport Square Partners, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Delaware Airport VIII, LLC

  	
   

  	
  Delaware

  	
   

  	
  Airport Square Partners, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Delaware Airport IX, LLC

  	
   

  	
  Delaware

  	
   

  	
  Airport Square Partners, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Fifth Exploration, L.L.C

  	
   

  	
  Maryland

  	
   

  	
  Great Mills V, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ft. Ritchie I, LLC

  	
   

  	
  Maryland

  	
   

  	
  Ft. Ritchie Holding, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ft. Ritchie II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Ft. Ritchie Holding, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ft. Ritchie III, LLC

  	
   

  	
  Maryland

  	
   

  	
  Ft. Ritchie Holding, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ft. Ritchie IV, LLC

  	
   

  	
  Maryland

  	
   

  	
  Ft. Ritchie Holding, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Ft. Ritchie Holding, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Fourth Exploration, L.L.C

  	
   

  	
  Maryland

  	
   

  	
  Great Mills V, L.L.C

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Gateway Crossing 95, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sols Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Gateway 44, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Gateway 67, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Gateway 70, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Gateway 70 Holdings, LLC

  	
   

  	
  Maryland

  	
   

  	
  Gateway 70, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Governors Court, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Governors Court 21, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Great Mills I, L.L.C

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  

 

3

 

	
  Name

  	
   

  	
  Jurisdiction

  	
   

  	
  Person Holding an Equity Interest

  	
   

  	
  Nature of Interests

  Held

  	
   

  	
  Percentage

  Ownership

  	
   

  	
  Excluded

  or

  Material

  
	
  Great Mills II, LLC.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Solo Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Great Mills III, LLC.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Great Mills IV, LLC.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Great Mills V, LLC.

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Honeygo Run Holdings, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Honeyland 108, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Jolly COPT I, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Jolly COPT II, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  M Square NOAA, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  MOR Forbes, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  80

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, Trust

  	
   

  	
  Member

  	
   

  	
  20

  	
  %

  	
   

  
	
  NBP One, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP Huff & Puff, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP Lot 3-A, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP Retail, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 131-133-141, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 132, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L. P,

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 134, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 135, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 140, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 191, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 201, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 201 Holdings, LLC

  	
   

  	
  Maryland

  	
   

  	
  NBP 201, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 211,LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 211 Holdings, LLC

  	
   

  	
  Maryland

  	
   

  	
  NBP 211, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 220,LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
  Material

  
	
  NBP 220 Holdings, LLC

  	
   

  	
  Maryland

  	
   

  	
  NBP 220, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 221,LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 302, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 304,LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 306, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 318,LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 320,LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  NBP 322, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Northcreek Manager, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Nottingham Center, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Park Circle Equities, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sols Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Patriot Park, L.L.C.

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Pecan Court, L.L.C.

  	
   

  	
  Maryland

  	
   

  	
  Great Mills II, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Philadelphia Road Operating Company, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Professional Center I, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Professional Center III, LLC

  	
   

  	
  Maryland

  	
   

  	
  W &  M
  Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Red Cedar Building, LLC

  	
   

  	
  Maryland

  	
   

  	
  Great Mills I, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  RIVA Trustee, LLC

  	
   

  	
  Maryland

  	
   

  	
  MOR Forbes, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Rivers Center III Investors, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Riverwood Business Center Equity Affiliates, LLC

  	
   

  	
  Maryland

  	
   

  	
  W &  M
  Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Rockville Corporate Center, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Route 46 Partners, LL.C.

  	
   

  	
  New Jersey

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Schilling 216 Investors, LLC

  	
   

  	
  Maryland

  	
   

  	
  W &  M
  Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Schilling Center Equities, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Sterling York, LLC

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tech Park I, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tech Park Il, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Tech Park IV, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Third Exploration, LLC

  	
   

  	
  Maryland

  	
   

  	
  Great Mills III, L.L.C.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  TRC Pinnacle Towers, LLC

  	
   

  	
  Virginia

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  TylerRidge l, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  White Marsh Business Center, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  White Marsh Professional Center II, LLC

  	
   

  	
  Maryland

  	
   

  	
  W & M Business Trust

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  Woods Investors, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  WMBC 13A Investment Company, LLC

  	
   

  	
  Maryland

  	
   

  	
  Tyler Ridge Limited Partnership

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  67 Financing LLC

  	
   

  	
  Maryland

  	
   

  	
  Gateway 87, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  110 Thomas Johnson, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  134, LLC

  	
   

  	
  Maryland

  	
   

  	
  NBP 134, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  220 Schilling Circle, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  304 Sentinel, LLC

  	
   

  	
  Maryland

  	
   

  	
  NBP 304, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  800 International, LLC

  	
   

  	
  Maryland

  	
   

  	
  Tech Park IV, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  849 International, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square XXI, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  881 Elkridge Landing, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square X, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  900 International, LLC

  	
   

  	
  Maryland

  	
   

  	
  Tech Park II, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  930 International, LLC

  	
   

  	
  Maryland

  	
   

  	
  Tech Park I, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  999 Corporate, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square XV, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  1099 Winterson, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square XIX, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  1190 Winterson, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square XIV, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  1199 Winterson, LLC

  	
   

  	
  Maryland

  	
   

  	
  Airport Square XX, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  1362 Mellon, LLC

  	
   

  	
  Maryland

  	
   

  	
  Commons Office 6-8, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  1460 Dorsey Road, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  2691 Technology, LLC

  	
   

  	
  Maryland

  	
   

  	
  NBP 191, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  2900 Lord Baltimore Drive, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  6700 Alexander Bell, LLC

  	
   

  	
  Maryland

  	
   

  	
  COPT Gate 6700-6708-6724, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  6711 Gateway, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  6711 Gateway Funding, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  99

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties, Trust

  	
   

  	
  Member

  	
   

  	
  1

  	
  %

  	
   

  
	
  6721 Gateway, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  6731 Gateway, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  6741 Gateway, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  6940 CGD, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Gatespring II, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7000 CG, LLC

  	
   

  	
  Maryland

  	
   

  	
  7000  Honeys, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  

 

4

 

	
  Name

  	
   

  	
  Jurisdiction

  	
   

  	
  Person Holding an Equity Interest

  	
   

  	
  Nature of Interests

  Held

  	
   

  	
  Percentage

  Ownership

  	
   

  	
  Excluded

  or

  Material

  
	
  7000 Honeys, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7015 Albert Einstein Drive,
  LL. C.

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties,
  L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7130 Columbia Gateway, LLC

  	
   

  	
  Maryland

  	
   

  	
  Gateway Crossing 85, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7200 Riverwood, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7210 Ambassador Road, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7240 Parkway Drive
  Enterprises, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties,
  L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7253 Ambassador Road, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7318 Parkway Drive
  Enterprises, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, L.P.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7320 Parkway Drive
  Enterprises, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties,
  LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7320 PD, LLC

  	
   

  	
  Maryland

  	
   

  	
  7320 Parkway Drive
  Enterprises, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  8621 RFD, LLC

  	
   

  	
  Maryland

  	
   

  	
  Gateway 70, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  8661 RFD, LLC

  	
   

  	
  Maryland

  	
   

  	
  Gateway 67, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  9020 Mendenhall, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties,
  LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  9690 Deereco Road, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  9965 Federal Drive, LLC

  	
   

  	
  Colorado

  	
   

  	
  Corporate Office
  Properties, LP.

  	
   

  	
  Member

  	
   

  	
  99

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corporate Office Properties
  Holdings, Inc.

  	
   

  	
  Member

  	
   

  	
  1

  	
  %

  	
   

  
	
  11011 McCormick Road, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office
  Properties, LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  11101 McCormick Road, LLC

  	
   

  	
  Maryland

  	
   

  	
  Corporals Office
  Properties, LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  11800 Tech Road LLC

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties,
  LP.

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  

 

5

 

 

Schedule 6.1(b) Part 2

Ownership Structure - Joint Ventures

Current as of September 19, 2007

 

	
  Name

  	
   

  	
  Jurisdiction

  	
   

  	
  Person Holding an Equity Interest

  	
   

  	
  Nature of Interests

  Held

  	
   

  	
  Percentage

  Ownership

  	
   

  	
  Excluded

  or

  Material

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Gateway, L.P.

  	
   

  	
  Delaware

  	
   

  	
  Harrisburg Investors General Partner, LLC

  	
   

  	
  General Partner

  	
   

  	
  0.10

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  COPT Gateway, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  99.90

  	
  %

  	
   

  
	
  Harrisburg Corporate
  Gateway Partners, L.P. (JV)

  	
   

  	
  Delaware

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Limited Partner

  	
   

  	
  20.12

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Harrisburg Investors, L.P

  	
   

  	
  Limited Partner

  	
   

  	
  79.78

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Harrisburg Investors I, LLC

  	
   

  	
  General Partner

  	
   

  	
  0.1

  	
  %

  	
   

  
	
  Arundel Preserve #5, LLC
  (JV)

  	
   

  	
  Maryland

  	
   

  	
  COPT Arundel Preserve, LLC

  	
   

  	
  Member

  	
   

  	
  50

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kirk Property Limited Partnership

  	
   

  	
  Member

  	
   

  	
  50

  	
  %

  	
   

  
	
  COPT-FD Indian Head, LLC
  (JV)

  	
   

  	
  Maryland

  	
   

  	
  COPT Indian Head, LLC

  	
   

  	
  Member

  	
   

  	
  75

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Indian Head Business Park, LLC

  	
   

  	
  Member

  	
   

  	
  25

  	
  %

  	
   

  
	
  COPT Opportunity Invest
  I, LLC (JV)

  	
   

  	
  Maryland

  	
   

  	
  COPT Renovation, LLC

  	
   

  	
  Member

  	
   

  	
  92.5

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Opportunity Invest, LLC

  	
   

  	
  Member

  	
   

  	
  7.5

  	
  %

  	
   

  
	
  Enterprise Campus
  Developer, LLC (JV)

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  90

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Manekin Investments Associates 3, LLC

  	
   

  	
  Member

  	
   

  	
  10

  	
  %

  	
   

  
	
  MOR Forbes 2, LLC (JV)

  	
   

  	
  Maryland

  	
   

  	
  Corporate Office Properties, L.P.

  	
   

  	
  Member

  	
   

  	
  80

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Manekin Forbes LLLP

  	
   

  	
  Member

  	
   

  	
  20

  	
  %

  	
   

  
	
  Opportunity Invest
  Ventures, LLC (JV)

  	
   

  	
  Delaware

  	
   

  	
  COPT Opportunity Invest I, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  2900 Towerview Road, LLC
  (JV)

  	
   

  	
  Virginia

  	
   

  	
  COPT Opportunity Invest I, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  
	
  7468 Candlewood Road,
  LLC (JV)

  	
   

  	
  Maryland

  	
   

  	
  COPT Opportunity Invest I, LLC

  	
   

  	
  Sole Member

  	
   

  	
  100

  	
  %

  	
   

  

 

1

 

Schedule 6.1(f) Part 1 - Title to
Properties

As Of August 31, 2007

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Square Feet Under

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total Operational

  	
   

  	
  Construction /

  	
   

  	
  Developable Square

  	
   

  	
  JV Interest Held

  
	
   

  	
   

  	
  Submarket

  	
   

  	
  Square Feet

  	
   

  	
  Redevelopment

  	
   

  	
  Feet

  	
   

  	
  by COPT

  
	
  Office Properties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baltimore /Washington
  Corridor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2730 Hercules Road

  	
   

  	
  BWI Airport

  	
   

  	
  240,336

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  304 Sentinel Drive (304
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  162,498

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  306 Sentinel Drive (306
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  157,896

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  302 Sentinel Drive (302
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
   

  	
  157,146

  	
   

  	
   

  	
   

  	
   

  
	
  2720 Technology Drive (220
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  156,730

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2711 Technology Drive (211
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  152,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  320 Sentinel Drive (320
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
   

  	
  125,681

  	
   

  	
   

  	
   

  	
   

  
	
  318 Sentinel Drive (318
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  125,681

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  322 Sentinel Drive (322
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  125,568

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  140 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  119,904

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  132 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  118,456

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2721 Technology Drive (221
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  118,093

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2701 Technology Drive (201
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  117,450

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2691 Technology Drive (191
  NBP)

  	
   

  	
  BWI Airport

  	
   

  	
  103,683

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  134 National Business Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  93,482

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  135 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  87,655

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  133 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  87,401

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  141 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  87,247

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  131 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  69,039

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  114 National Business
  Parkway

  	
   

  	
  BWI Airport

  	
   

  	
  9,908

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2,133,027

  	
   

  	
  282,827

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1306 Concourse Drive

  	
   

  	
  BWI Airport

  	
   

  	
  114,046

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  870-880 Elkridge Landing
  Road

  	
   

  	
  BWI Airport

  	
   

  	
  105,151

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1304 Concourse Drive

  	
   

  	
  BWI Airport

  	
   

  	
  101,710

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  900 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  97,261

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1199 Winterson Road

  	
   

  	
  BWI Airport

  	
   

  	
  96,636

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  920 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  96,566

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1302 Concourse Drive

  	
   

  	
  BWI Airport

  	
   

  	
  84.406

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  881 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  73,572

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1099 Wintersoh Road

  	
   

  	
  BWI Airport

  	
   

  	
  70,569

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1190 Winterson Road

  	
   

  	
  BWI Airport

  	
   

  	
  69,127

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  849 International Drive

  	
   

  	
  BWI Airport

  	
   

  	
  68,758

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  911 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  68,296

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1201 Winterson Road

  	
   

  	
  BWI Airport

  	
   

  	
  67,903

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  999 Corporate Boulevard

  	
   

  	
  BWI Airport

  	
   

  	
  67.455

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  891 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  58.454

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  901 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  57,593

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  930 International Drive

  	
   

  	
  BWI Airport

  	
   

  	
  57,409

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  800 International Drive

  	
   

  	
  BWI Airport

  	
   

  	
  57.379

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  900 International Drive

  	
   

  	
  BWI Airport

  	
   

  	
  57,140

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  921 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  54,175

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  940 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  53,941

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  939 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  53,031

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  938 Elkridge Landing Road

  	
   

  	
  BWI Airport

  	
   

  	
  52,988

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1,683,566

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7467 Ridge Road

  	
   

  	
  BWI Airport

  	
   

  	
  74,326

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7240 Parkway Drive

  	
   

  	
  BWI Airport

  	
   

  	
  73,970

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7272 Park Circle Drive

  	
   

  	
  BWI Airport

  	
   

  	
  59,397

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7318 Parkway Drive

  	
   

  	
  BWI Airport

  	
   

  	
  59,204

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7320 Parkway Drive

  	
   

  	
  BWI Airport

  	
   

  	
  58,453

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1340 Ashton Road

  	
   

  	
  BWI Airport

  	
   

  	
  46,400

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1362 Mellon Road

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
   

  	
  44,134

  	
   

  	
   

  	
   

  	
   

  
	
  1334 Ashton Road

  	
   

  	
  BWI Airport

  	
   

  	
  37,565

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1331 Ashton Road

  	
   

  	
  BWI Airport

  	
   

  	
  29,936

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1350 Dorsey Road

  	
   

  	
  BWI Airport

  	
   

  	
  19,992

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1344 Ashton Rood

  	
   

  	
  BWI Airport

  	
   

  	
  17,062

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1341 Ashton Road

  	
   

  	
  BWI Airport

  	
   

  	
  15,841

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1343 Ashton Road

  	
   

  	
  BWI Airport

  	
   

  	
  9,962

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1348 Ashton Road

  	
   

  	
  BWI Airport

  	
   

  	
  3,108

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  505,216

  	
   

  	
  44,134

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal (continued on next
  page)

  	
   

  	
   

  	
   

  	
  4,321,809

  	
   

  	
  326,961

  	
   

  	
   

  	
   

  	
   

  

 

1

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Square Feet

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total Operational Square

  	
   

  	
  Under Constraction
  /

  	
   

  	
  Developable Square

  	
   

  	
  JV Interest Held

  
	
   

  	
   

  	
  Submarket

  	
   

  	
  Feet

  	
   

  	
  Redevelopment

  	
   

  	
  Feet

  	
   

  	
  by COPT

  
	
  Office Properties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal (continued from
  prior page)

  	
   

  	
   

  	
   

  	
  4,321,809

  	
   

  	
  326,961

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5520 Research Park Drive
  (UMBC) (1)

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
   

  	
  110,000

  	
   

  	
   

  	
   

  	
   

  
	
  5522 Research Park Drive
  (UMBC) (1)

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
   

  	
  23,500

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  133,500

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2500 Riva Road

  	
   

  	
  Annapolis

  	
   

  	
  155,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Old Annapolis Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  150,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7125 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  611,379

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7000 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  145,806

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6711 Columbia Gateway Drive

  	
   

  	
  Haward Co. Perimeter

  	
   

  	
  89,559

  	
   

  	
  35,441

  	
   

  	
   

  	
   

  	
   

  
	
  6731 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  123,911

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6940 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  109,003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6950 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  107,778

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8621 Robert Fulton Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  86,032

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7067 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  82,953

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6750 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  78,460

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6700 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  74,859

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6740 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  63,480

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7015 Albert Einstein Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  61,203

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8671 Robert Fulton Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  56,350

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6716 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  52,005

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8661 Robert Fulton Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  49,307

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7130 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  46,840

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7142 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  45,951

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6708 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  39,203

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7065 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  38,560

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7138 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  38,225

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7063 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  36,936

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6760 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  36,440

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7150 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  35,812

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7061 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  29,910

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6724 Alexander Bell Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  28,420

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7134 Columbia Gateway Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  21,991

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2,190,373

  	
   

  	
  35,441

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7200 Riverwood Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  160.000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7160 Riverwood Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  62,084

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9140 Guilford Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  41,704

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7150 Riverwood Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  41,382

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9160 Guilford Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  37,034

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7170 Riverwood Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  29,162

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7175 Riverwood Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  26,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9150 Guilford Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  18,592

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10280 Old Columbia Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  16,796

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10270 Old Columbia Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  16,686

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9130 Guilford Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  13,700

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10290 Old Columbia Road

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  10,890

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  474,530

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9720 Patuxent Woods Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  40,004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9740 Patuxent Woods Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  38,292

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9700 Patuxent Woods Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  31,261

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9730 Patuxent Woods Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  30,986

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9710 Patuxent Woods Drive

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  15,229

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  155,772

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9020 Mendenhall Court

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  49,259

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Baltimore/Washington Corrider

  	
   

  	
   

  	
   

  	
  7,496,743

  	
   

  	
  495,902

  	
   

  	
   

  	
   

  	
   

  

 

2

 

	
   

  	
   

  	
  Submarket

  	
   

  	
  Total Operational Square

  Feet

  	
   

  	
  Total Square Feet Under

  Construction/

  Redevelopment

  	
   

  	
  Developable Square

  Feet

  	
   

  	
  JV Interest Held

  by COPT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Mary’s & King
  George Counties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22309 Exploration Drive

  	
   

  	
  St. Mary’s County

  	
   

  	
  98,860

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22289 Exploration Drive

  	
   

  	
  St. Mary’s County

  	
   

  	
  61,059

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22299 Exploration Drive

  	
   

  	
  St. Mary’s County

  	
   

  	
  58,231

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32300 Exploration Drive

  	
   

  	
  St. Mary’s County

  	
   

  	
  44,830

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  262,980

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46579 Expedition Drive

  	
   

  	
  St. Mary’s County

  	
   

  	
  61,156

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46591 Expedition Drive

  	
   

  	
  St. Mary’s County

  	
   

  	
  60,029

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  121,185

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44425 Pecan Court

  	
   

  	
  St. Mary’s County

  	
   

  	
  59,055

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44408 Pecan Court

  	
   

  	
  St. Mary’s County

  	
   

  	
  50,532

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23535 Cottonwood Parkway

  	
   

  	
  St. Mary’s County

  	
   

  	
  46,656

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44417 Pecan Court

  	
   

  	
  St. Mary’s County

  	
   

  	
  29,053

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44414 Pecan Court

  	
   

  	
  St. Mary’s County

  	
   

  	
  25,444

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44420 Pecan Court

  	
   

  	
  St. Mary’s County

  	
   

  	
  25,200

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  235,940

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16480 Commerce Drive

  	
   

  	
  King George
  County

  	
   

  	
  70,728

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16541 Commerce Drive

  	
   

  	
  King George
  County

  	
   

  	
  36,053

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16539 Commerce Drive

  	
   

  	
  King George
  County

  	
   

  	
  32,076

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16442 Commerce Drive

  	
   

  	
  King George
  County

  	
   

  	
  25,518

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16501 Commerce Drive

  	
   

  	
  King George
  County

  	
   

  	
  22,800

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16543 Commerce Drive

  	
   

  	
  King George
  County

  	
   

  	
  17,370

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  204,605

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total St. Mary’s & King George Counties

  	
   

  	
   

  	
   

  	
  824,710

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Northern Virginia

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15000 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  470,406

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15010 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  223,610

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15059 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  145,192

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15049 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  145,053

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14900 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  127,115

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14280 Park Meadow Drive

  	
   

  	
  Dulles South

  	
   

  	
  114,126

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4851 Stonecroft Boulevard

  	
   

  	
  Dulles South

  	
   

  	
  88,094

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14850 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  69,711

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14840 Conference Center
  Drive

  	
   

  	
  Dulles South

  	
   

  	
  69,710

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1,453,017

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13200 Woodland Park Road

  	
   

  	
  Herndon

  	
   

  	
  404,665

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13454 Sunrise Valley
  Road

  	
   

  	
  Herndon

  	
   

  	
  112,633

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13450 Sunrise Valley
  Road

  	
   

  	
  Herndon

  	
   

  	
  53,728

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  166,361

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1751 Pinnacle Drive

  	
   

  	
  Tysons Corner

  	
   

  	
  260,469

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1753 Pinnacle Drive

  	
   

  	
  Tysons Corner

  	
   

  	
  181,637

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  442,106

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Northern Virginia

  	
   

  	
   

  	
   

  	
  2,466,149

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
  Submarket

  	
   

  	
  Total Operational

  Square Feet

  	
   

  	
  Total Square Feet

  Under Construction/

  Redevelopment

  	
   

  	
  Developable Square

  Feet

  	
   

  	
  JV Interest Held

  by COPT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Virginia

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11751 Meadowville Lane

  	
   

  	
  Richmond Southwest

  	
   

  	
  193,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  201 Technology Park Drive (l)

  	
   

  	
  Southwest Virginia

  	
   

  	
   

  	
   

  	
  102,842

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Other Virginia

  	
   

  	
   

  	
   

  	
  193,000

  	
   

  	
  102,842

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater Philadelphia

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  753 Jolly Road

  	
   

  	
  Blue Bell

  	
   

  	
  419,472

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  785 Jolly Road

  	
   

  	
  Blue Bell

  	
   

  	
  219,065

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  760 Jolly Rood

  	
   

  	
  Blue Bell

  	
   

  	
  208,854

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  751 Jolly Road

  	
   

  	
  Blue Bell

  	
   

  	
  112,958

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Greater Philadelphia

  	
   

  	
   

  	
   

  	
  960,349

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Northern/Central New Jersey

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  431 Ridge Road

  	
   

  	
  Exit 8A - Cranbury

  	
   

  	
  171,200

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  429 Ridge Road

  	
   

  	
  Exit 8A - Cranbury

  	
   

  	
  142,385

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  437 Ridge Road

  	
   

  	
  Exit 8A - Cranbury

  	
   

  	
  30,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  343,585

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47 Commerce

  	
   

  	
  Exit 8A - Cranbury

  	
   

  	
  41,398

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Northern/Central New Jersey

  	
   

  	
   

  	
   

  	
  384,983

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  San Antonio, Texas

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8611 Military Drive

  	
   

  	
  San Antonio

  	
   

  	
  468,994

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  San Antonio, Texas

  	
   

  	
   

  	
   

  	
  468,994

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Colorado Springs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  655 Space Center Drive

  	
   

  	
  Colorado Springs East

  	
   

  	
   

  	
   

  	
  103,900

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  985 Space .Center Drive

  	
   

  	
  Colorado Springs East

  	
   

  	
  102,717

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  745 Space Center Drive

  	
   

  	
  Colorado Springs East

  	
   

  	
  50,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  980 Technology Court

  	
   

  	
  Colorado Springs East

  	
   

  	
  33,190

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  185,907

  	
   

  	
  103,900

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1055 North Newport Road

  	
   

  	
  Colorado Springs East

  	
   

  	
   

  	
   

  	
  59,763

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1670 North Newport Rood

  	
   

  	
  Colorado Springs East

  	
   

  	
  67,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1915 Aerotech Drive

  	
   

  	
  Colorado Springs East

  	
   

  	
  37,946

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I925 Aerotech Drive

  	
   

  	
  Colorado Springs East

  	
   

  	
  37,946

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  143,392

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9950 Federal Drive

  	
   

  	
  1-25 North Corridor

  	
   

  	
  66,222

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9965 Federal Drive

  	
   

  	
  1-25 North Corridor

  	
   

  	
  41,120

  	
   

  	
  33,629

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9960 Federal Drive

  	
   

  	
  1-25 North Corridor

  	
   

  	
  46,948

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  154,290

  	
   

  	
  33,629

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5775 Mark Dubling Boulevard

  	
   

  	
  Colorado Springs Northwest

  	
   

  	
  109,678

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5725 Mark Dubling Boulevard

  	
   

  	
  Colorado Springs Northwest

  	
   

  	
  108,976

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5755 Mark Dubling Boulevard

  	
   

  	
  Colorado Springs Northwest

  	
   

  	
  105,788

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  324,442

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Colorado Springs

  	
   

  	
   

  	
   

  	
  808,031

  	
   

  	
  197,292

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

Schedule 6.1(f) Part I - Title to Properties

As of August 31, 2007

 

	
   

  	
   

  	
  Submarket

  	
   

  	
  Total

  Operational

  Square Feet

  	
   

  	
  Total Square Feet

  Under

  Construction /

  Redevelopment

  	
   

  	
  Developable Square

  Feet

  	
   

  	
  JV Interest Held
  by

  COPT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suburban Maryland

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11800 Tech Road

  	
   

  	
  North Silver Spring

  	
   

  	
  235,954

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  400 Professional Drive

  	
   

  	
  Gaithersburg

  	
   

  	
  129,311

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  110 Thomas Johnson Drive

  	
   

  	
  Frederick

  	
   

  	
  117,803

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45 West Gude Drive

  	
   

  	
  Rockville

  	
   

  	
  108,588

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15 West Gude Drive

  	
   

  	
  Rockville

  	
   

  	
  106,928

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  215,516

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Suburban Maryland

  	
   

  	
   

  	
   

  	
  698,584

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suburban Baltimore

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11311 McCormick Road

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  212,856

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  200 International Circle

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  128,653

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  226 Schilling Circle

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  98,640

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  201 International Circle

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  78,634

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11011 McCormick Road

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  56,512

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  216 Schilling Circle

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  36,003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  222 Schilling Circle

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  28,003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  224 Schilling Circle

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  27,372

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11101 McCormick Road

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  24,232

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  690,910

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10150 York Road

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  178,286

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9690 Deereco Road

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  134,175

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  375 West Padonia Road

  	
   

  	
  Hunt Valley/Rte 83 Corridor

  	
   

  	
  110,328

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  422,789

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7210 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  83,435

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7152 Windsor Boulevard

  	
   

  	
  Baltimore County Westside

  	
   

  	
  57,855

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21 Governor’s Court

  	
   

  	
  Baltimore County Westside

  	
   

  	
  56,063

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7125 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  50,488

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7253 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  38,930

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7104 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  29,457

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17 Governor’s Court

  	
   

  	
  Baltimore County Westside

  	
   

  	
  14,701

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15 Governor’s Court

  	
   

  	
  Baltimore County Westside

  	
   

  	
  14,568

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7127 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  11,144

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7129 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  11,075

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7108 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  9,018

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7102 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  8.379

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7106 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  8,820

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7131 Ambassador Road

  	
   

  	
  Baltimore County Westside

  	
   

  	
  7,453

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  401,886

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  502 Washington Avenue

  	
   

  	
  Towson

  	
   

  	
  91,188

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  102 West Pennsylvania Avenue

  	
   

  	
  Towson

  	
   

  	
  49,497

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100 West Pennsylvania Avenue

  	
   

  	
  Towson

  	
   

  	
  18,451

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  109-111 Allegheny Avenue

  	
   

  	
  Towson

  	
   

  	
  18,431

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  177,567

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal
  (continued on next page)

  	
   

  	
   

  	
   

  	
  1,693,152

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5

 

 

 

	
   

  	
   

  	
  Submarket

  	
   

  	
  Total Operational

  Square Feet

  	
   

  	
  Total Square Feet

  Under Construction/

  Redevelopment

  	
   

  	
  Developable

  Square Feet

  	
   

  	
  JV Interest Held

  by COPT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal (Continued from
  prior page)

  	
   

  	
   

  	
   

  	
  1,693,152

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4940 Campbell Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  49,813

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8140 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  75,687

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8110 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  75,687

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  151,374

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9910 Franklin Square
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  56,271

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9920 Franklin Square Drive

  	
   

  	
  White Marsh

  	
   

  	
  44,566

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9930 Franklin Square
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  39,750

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9900 Franklin Square
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  33,912

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9940 Franklin Square
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  33,134

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  207,633

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8020 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  51,600

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8094 Sandpiper Circle

  	
   

  	
  White Marsh

  	
   

  	
  50,812

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8098 Sandpiper Circle

  	
   

  	
  White Marsh

  	
   

  	
  47,680

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8010 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  39,351

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  189,443

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5325 Nottingham Ridge
  Road

  	
   

  	
  White Marsh

  	
   

  	
  37,322

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5355 Nottingham Ridge
  Road

  	
   

  	
  White Marsh

  	
   

  	
  36,981

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  74,303

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7941-7949 Corporate
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  57,600

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8007 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  43,197

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8013 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  38,618

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8019 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  25,461

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8003 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  18,327

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8015 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  16,610

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8023 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  9,486

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  209,299

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5020 Campbell Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  44,701

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5024 Campbell Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  33,791

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5026 Campbell Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  30,868

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5022 Campbell Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  27,507

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  136,867

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1001 Franklin Square
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  216,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8114 Sandpiper Circle

  	
   

  	
  White Marsh

  	
   

  	
  45,399

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4979 Mercantile Road

  	
   

  	
  White Marsh

  	
   

  	
  50,498

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4969 Mercantile Road

  	
   

  	
  White Marsh

  	
   

  	
  47,574

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  98,072

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7939 Honeygo Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  28,081

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8133 Perry Hall
  Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  27,803

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7923 Honeygo Boulevard

  	
   

  	
  White Marsh

  	
   

  	
  24,049

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  79,933

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8031 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  66,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10552 Philadelphia Road

  	
   

  	
  White Marsh

  	
   

  	
  56,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8015 Ridgely’s Choice
  Drive

  	
   

  	
  White Marsh

  	
   

  	
  37,797

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8029 Corporate Drive

  	
   

  	
  White Marsh

  	
   

  	
  25,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  184,797

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Suburban Baltimore

  	
   

  	
   

  	
   

  	
  3,336,085

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL PORTFOLIO

  	
   

  	
   

  	
   

  	
  17,637,628

  	
   

  	
  796,036

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Note: On September 7, 2007, we sold our interests
in the properties known as 7321 Parkway Drive in Linthicum, Maryland and 2 and 8
Centre Drive in Cranbury, New Jersy. These properties have been excluded from
this schedule.

 

6

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Square Feet

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Under

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total Operational

  	
   

  	
  Construction /

  	
   

  	
  Developable

  	
   

  	
  JV Interest Held

  	
   

  
	
   

  	
   

  	
  Submarket

  	
   

  	
  Square Feet

  	
   

  	
  Redevelopment

  	
   

  	
  Square Feet

  	
   

  	
  by COPT

  	
   

  
	
  Unconsolidated Joint Venture Properties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater Harrisburg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2605 Interstate Drive

  	
   

  	
  East Shore

  	
   

  	
  79,456

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  2601 Market Place

  	
   

  	
  East Shore

  	
   

  	
  65,411

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  144,867

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6345 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  69,443

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6340 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  68,200

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6400 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  52,439

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6360 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  46,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6385 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  32,921

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6380 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  32,668

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6405 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  32,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  95 Shannon Road

  	
   

  	
  East Shore

  	
   

  	
  21,976

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  75 Shannon Road

  	
   

  	
  East Shore

  	
   

  	
  20,887

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  6375 Flank Drive

  	
   

  	
  East Shore

  	
   

  	
  19,783

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  85 Shannon Road

  	
   

  	
  East Shore

  	
   

  	
  12,863

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  409,680

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5035 Ritter Road

  	
   

  	
  West Shore

  	
   

  	
  56,556

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  5070 Ritter Road - Building A

  	
   

  	
  West Shore

  	
   

  	
  32,309

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
  5070 Ritter Road - Building B

  	
   

  	
  West Shore

  	
   

  	
  28,347

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  117,212

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Greater Harrisburg

  	
   

  	
   

  	
   

  	
  671,759

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Unconsolidated Joint Venture Properties

  	
   

  	
   

  	
   

  	
  671,759

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consolidated Joint Venture Properties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suburban Maryland

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4230 Forbes Boulevard

  	
   

  	
  Lanham

  	
   

  	
  55,866

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  50.0

  	
  %

  
	
  Indian Head, LLC

  	
   

  	
  Charles County

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  677,250

  	
   

  	
  75.0

  	
  %

  
	
  Total Suburban Maryland

  	
   

  	
   

  	
   

  	
  55,866

  	
   

  	
  —

  	
   

  	
  677,250

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baltimore/Washington Corridor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7468 Candlewood Road

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
   

  	
  471,587

  	
   

  	
   

  	
   

  	
  92.5

  	
  %

  
	
  Total Baltimore/Washington Corridor

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  471,587

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Northern
  Virginia

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2900 Towerview Road and

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13849 Part Center Road

  	
   

  	
  Route 28 South

  	
   

  	
  78,171

  	
   

  	
  116,706

  	
   

  	
   

  	
   

  	
  92.5

  	
  %

  
	
  Total
  Northern Virginia

  	
   

  	
   

  	
   

  	
  78,171

  	
   

  	
  116,706

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Consolidated Joint Venture Properties

  	
   

  	
   

  	
   

  	
  134,037

  	
   

  	
  588,293

  	
   

  	
  677,250

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  PORTFOLIO

  	
   

  	
   

  	
   

  	
  805,796

  	
   

  	
  588,293

  	
   

  	
  677,250

  	
   

  	
   

  	
   

  

 

7

 

Schedule 6.1(f) Part I - Title to Properties

As of August 31, 2007

 

	
   

  	
   

  	
   

  	
   

  	
  Developable

  	
   

  
	
   

  	
   

  	
  Submarket

  	
   

  	
  Square Feet

  	
   

  
	
  Redevelopment/Development

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gude Drive Land - Building
  I

  	
   

  	
  Rockville

  	
   

  	
  110,000

  	
   

  
	
  Gude Drive Land Parcel /
  Rockville Corporate Ctr. (Celera/Appelera)

  	
   

  	
  Rockville

  	
   

  	
  110,000

  	
   

  
	
  Gateway Exchange III (6721
  Columbia Gateway Drive)

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  131,550

  	
   

  
	
  Worldcom Land

  	
   

  	
  Dulles South

  	
   

  	
  674,200

  	
   

  
	
  Interquest Land

  	
   

  	
  1-25 North Corridor

  	
   

  	
  1,500,000

  	
   

  
	
  300 NBP

  	
   

  	
  BWI Airport

  	
   

  	
  190,000

  	
   

  
	
  316 NBP

  	
   

  	
  BWI Airport

  	
   

  	
  125,000

  	
   

  
	
  16442A Commerce Drive
  (Dahlgren)

  	
   

  	
  King George County

  	
   

  	
  50,000

  	
   

  
	
  308 NBP

  	
   

  	
  BWI Airport

  	
   

  	
  161,200

  	
   

  
	
  Corporate Place III

  	
   

  	
  White Marsh

  	
   

  	
  125,000

  	
   

  
	
  Corporate Place IV

  	
   

  	
  White Marsh

  	
   

  	
  125,000

  	
   

  
	
  Thomas Johnson Drive
  (Frederick - 6 acres)

  	
   

  	
  Frederick

  	
   

  	
  85,000

  	
   

  
	
  1460 Dorsey Road

  	
   

  	
  BWI Airport

  	
   

  	
  60,000

  	
   

  
	
  NBP Visitor Control Center

  	
   

  	
  BWI Airport

  	
   

  	
  20,000

  	
   

  
	
  Clarks Hundred (NBP Phase
  III)

  	
   

  	
  BWI Airport

  	
   

  	
  1,250,000

  	
   

  
	
  312 NBP

  	
   

  	
  BWI Airport

  	
   

  	
  125,000

  	
   

  
	
  Cedar Knolls

  	
   

  	
  BWI Airport

  	
   

  	
  320,000

  	
   

  
	
  Columbia Gateway (T-II)

  	
   

  	
  Howard Co, Perimeter

  	
   

  	
  220,000

  	
   

  
	
  6741 Columbia Gateway

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  10,000

  	
   

  
	
  Pork Center - Building I

  	
   

  	
  Dulles South

  	
   

  	
  160,000

  	
   

  
	
  Waterview III / Three
  Dulles Tower / Woodland Park

  	
   

  	
  Herndon

  	
   

  	
  225,000

  	
   

  
	
  Ft. Ritchie Land

  	
   

  	
  Cascade, MD

  	
   

  	
  1,700,000

  	
   

  
	
  Dahlgren Land Parcel

  	
   

  	
  King George County

  	
   

  	
  65,000

  	
   

  
	
  Westfields Corporate
  Center 19 acres / WTP3 St. Joe’s land

  	
   

  	
  Dulles South

  	
   

  	
  246,800

  	
   

  
	
  Blue Bell Corporate Center

  	
   

  	
  Blue Bell

  	
   

  	
  600,000

  	
   

  
	
  San Antonio - 27 acre land
  parcel

  	
   

  	
  San Antonio

  	
   

  	
  350,000

  	
   

  
	
  San Antonio - 31 acre land
  parcel

  	
   

  	
  San Antonio

  	
   

  	
  375,000

  	
   

  
	
  COPT Princeton South

  	
   

  	
  Exit 8A - Cranbury

  	
   

  	
  TBD

  	
   

  
	
  Expedition VII - (parcel #2)

  	
   

  	
  St. Mary’s County

  	
   

  	
  60,000

  	
   

  
	
  Fort Ritchie - General
  (Land)

  	
   

  	
  Cascade, MD

  	
   

  	
   

  	
  (1)

  
	
  Patriot Park (Colorado
  Springs) 52 acres 7/08/05

  	
   

  	
  Colorado Springs East

  	
   

  	
  860,000

  	
   

  
	
  Galley Road

  	
   

  	
  Rockville

  	
   

  	
  TBD

  	
   

  
	
  Aerotech 2

  	
   

  	
  Colorado Springs East

  	
   

  	
  90,000

  	
   

  
	
  9965 Federal Land Parcel

  	
   

  	
  1-25 North Corridor

  	
   

  	
  30,000

  	
   

  
	
  Clarks Hundred II

  	
   

  	
  BWI Airport

  	
   

  	
   

  	
  (2)

  
	
  White Marsh (Lot 401)

  	
   

  	
  White Marsh

  	
   

  	
  1,600,000

  	
   

  
	
  Nottingham Ridge

  	
   

  	
   

  	
   

  	
   

  	
  (3)

  
	
  10521 Red Run Boulevard

  	
   

  	
   

  	
   

  	
   

  	
  (3)

  
	
  White Marsh Com. Ctr. II

  	
   

  	
   

  	
   

  	
   

  	
  (3)

  
	
  Campbell Blvd. & Franklin
  Square

  	
   

  	
   

  	
   

  	
   

  	
  (3)

  
	
  Nottingham &
  Philadelphia Roads

  	
   

  	
   

  	
   

  	
   

  	
  (3)

  
	
  Philadelphia
  Rd. & Route 43

  	
   

  	
   

  	
   

  	
   

  	
  (3)

  
	
  7125 Columbia Gateway
  Drive (Land)

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  120,000

  	
   

  
	
  Riverwood I &. II (Land)

  	
   

  	
  Howard Co. Perimeter

  	
   

  	
  70,000

  	
   

  
	
   

  	
   

  	
  Total:

  	
   

  	
  11,753,750

  	
   

  

 

(1)
Included in total of 1.7 million s.f. of development

(2)
Included in total of 1.275 million s.f. of development,

(3)
Included in total of I.6MM s.f. of development.

 

8

 

Schedule 6.1(f) Part II - Liens In Existence

As of August 31, 2007

 

	
  Loan

  	
   

  	
  Secured Property(ies)

  	
   

  
	
  TIAA
  (suburban office)

  	
   

  	
  2730
  Hercules Road

  	
   

  
	
   

  	
   

  	
  133
  National Business Parkway

  	
   

  
	
   

  	
   

  	
  131
  National Business Parkway

  	
   

  
	
   

  	
   

  	
  135
  National Business Parkway

  	
   

  
	
   

  	
   

  	
  141
  National Business Parkway

  	
   

  
	
   

  	
   

  	
  7240
  Parkway Drive

  	
   

  
	
   

  	
   

  	
  6950
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  46579
  Expedition Drive

  	
   

  
	
   

  	
   

  	
  22289
  Exploration Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IDS
  (9690 Decreco & Exploration
  IV)

  	
   

  	
  9690
  Decreco Road

  	
   

  
	
   

  	
   

  	
  22299
  Exploration Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  State
  Farm (132 / 221 NBP)

  	
   

  	
  132
  National Business Parkway

  	
   

  
	
   

  	
   

  	
  2721
  Technology Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Transoccidental
  (AEGON) — ABD

  	
   

  	
  6716
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
  6740
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
  6750
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
  6760
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Allstate
  — Commons / Parkway

  	
   

  	
  1331
  Ashton Road

  	
   

  
	
   

  	
   

  	
  1341
  Ashton Road

  	
   

  
	
   

  	
   

  	
  1338
  Ashton Road

  	
   

  
	
   

  	
   

  	
  1343
  Ashton Road

  	
   

  
	
   

  	
   

  	
  1344
  Ashton Road

  	
   

  
	
   

  	
   

  	
  1348
  Ashton Road

  	
   

  
	
   

  	
   

  	
  1350
  Dorsey Road

  	
   

  
	
   

  	
   

  	
  7467
  Ridge Road

  	
   

  
	
   

  	
   

  	
  7318
  Parkway Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  AEGON
  — Concourse & AS

  	
   

  	
  1302
  Concourse Drive

  	
   

  
	
   

  	
   

  	
  1306
  Concourse Drive

  	
   

  
	
   

  	
   

  	
  891
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  901
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TIAA
  — 201/211 NBP

  	
   

  	
  2701
  Technology Drive

  	
   

  
	
   

  	
   

  	
  2711
  Technology Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  State
  Farm (Gateway 63/Rivers 95)

  	
   

  	
  7061
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7063
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7065
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7067
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  9130
  Guilford Road

  	
   

  
	
   

  	
   

  	
  9140
  Guilford Road

  	
   

  
	
   

  	
   

  	
  9150
  Guilford Road

  	
   

  
	
   

  	
   

  	
  9160
  Guilford Road

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Northwestern
  Mutual (Westfields I)

  	
   

  	
  15049
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Allstate
  - 11800 Tech

  	
   

  	
  11800
  Tech Road

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Allstate - AS III, VI, VII & XVIII

  	
   

  	
  920
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  938
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  940
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  1304
  Concourse Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Aegon
  - Dulles Tech /Ridgeview

  	
   

  	
  13454
  Sunrise Valley

  	
   

  
	
   

  	
   

  	
  13450
  Sunrise Valley

  	
   

  
	
   

  	
   

  	
  14900
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
  14840
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
  14850
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TIAA
  - I Dulles Tower/Greens 2&3

  	
   

  	
  15059
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
  4851
  Stonecraft Boulevard

  	
   

  
	
   

  	
   

  	
  13200
  Woodland Park Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TIAA
  (Pinnacle - assumed)

  	
   

  	
  1751
  Pinnacle Drive

  	
   

  
	
   

  	
   

  	
  1753
  Pinnacle Drive

  	
   

  

 

 

	
  Loan

  	
   

  	
  Secured Property(ies)

  	
   

  
	
  Greenwich

  	
   

  	
  134
  National Business Parkway

  	
   

  
	
   

  	
   

  	
  6940
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  880
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  870
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  7000
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7320
  Parkway Drive

  	
   

  
	
   

  	
   

  	
  8621
  Robert Fulton Drive

  	
   

  
	
   

  	
   

  	
  8661
  Robert Fulton Drive

  	
   

  
	
   

  	
   

  	
  8671
  Robert Fulton Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LaSalle

  	
   

  	
  2691
  Technology Drive

  	
   

  
	
   

  	
   

  	
  304
  Sentinel Drive

  	
   

  
	
   

  	
   

  	
  6700
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
  6708
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
  6724
  Alexander Bell Drive

  	
   

  
	
   

  	
   

  	
  7130
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7134
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7138
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7142
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
  7150
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Goldman
  Sachs

  	
   

  	
  881
  Elkridge Landing Road

  	
   

  
	
   

  	
   

  	
  1190
  Winterson Road

  	
   

  
	
   

  	
   

  	
  999
  Corporate Boulevard

  	
   

  
	
   

  	
   

  	
  1099
  Winterson Road

  	
   

  
	
   

  	
   

  	
  1199
  Winterson Road

  	
   

  
	
   

  	
   

  	
  849
  International Drive

  	
   

  
	
   

  	
   

  	
  930
  International Drive

  	
   

  
	
   

  	
   

  	
  900
  International Drive

  	
   

  
	
   

  	
   

  	
  800
  International Drive

  	
   

  
	
   

  	
   

  	
  5725
  Mark Dabling Boulevard

  	
   

  
	
   

  	
   

  	
  5755
  Mark Dabling Boulevard

  	
   

  
	
   

  	
   

  	
  5775
  Mark Dabling Boulevard

  	
   

  
	
   

  	
   

  	
  1915
  Acrotech Drive

  	
   

  
	
   

  	
   

  	
  1925
  Acrotech Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Allstate
  (W&M)

  	
   

  	
  8013
  Corporate Drive

  	
   

  
	
   

  	
   

  	
  8015
  Corporate Drive

  	
   

  
	
   

  	
   

  	
  8019
  Corporate Drive

  	
   

  
	
   

  	
   

  	
  8023
  Corporate Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Wachovia
  (W&M)

  	
   

  	
  10270
  Old Columbia Road

  	
   

  
	
   

  	
   

  	
  10280
  Old Columbia Road

  	
   

  
	
   

  	
   

  	
  10290
  Old Columbia Road

  	
   

  
	
   

  	
   

  	
  9700
  Patuxent Woods Drive

  	
   

  
	
   

  	
   

  	
  9710
  Patuxent Woods Drive

  	
   

  
	
   

  	
   

  	
  9720
  Patuxent Woods Drive

  	
   

  
	
   

  	
   

  	
  9730
  Patuxent Woods Drive

  	
   

  
	
   

  	
   

  	
  9740
  Patuxent Woods Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LaSalle

  	
   

  	
  15000
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
  15010
  Conference Center Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  W&M
  (Park Circle)

  	
   

  	
  7272
  Park Circle Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GMAC
  - Crown Point

  	
   

  	
  400
  Professional Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ING
  - Corp Point III (assumed)

  	
   

  	
  14280
  Park Meadow Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Wachovia
  - Dahlgren 

  	
   

  	
  16442
  Commerce Drive

  	
   

  
	
   

  	
   

  	
  16501
  Commerce Drive

  	
   

  
	
   

  	
   

  	
  16543
  Commerce Drive

  	
   

  

 

 

	
  Loan

  	
   

  	
  Secured Property(ies)

  	
   

  
	
  PNC - Veda I & II

  	
   

  	
  22309 Exploration Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Key
  Bank - Red Cedar

  	
   

  	
  44425
  Pecan Court

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GMAC
  - Newport Center

  	
   

  	
  1670
  North Newport Road

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Albert Einstein (AE)/State Farm

  	
   

  	
  7015
  Albert Einstein Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7125
  Columbia Gateway Drive

  	
   

  	
  7125
  Columbia Gateway Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  State
  Farm (Franklin Square)

  	
   

  	
  9910
  Franklin Square Drive

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  State
  Farm 2 (Washington Ave.)

  	
   

  	
  502
  Washington Avenue

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Wachovia
  term loan ($34.5M)

  	
   

  	
  7200
  Riverwood Drive

  	
  (1)

  
	
   

  	
   

  	
  2500
  Riva Road

  	
  (1)

  
	
   

  	
   

  	
  9950
  Federal Drive

  	
  (1)

  
	
   

  	
   

  	
  9960
  Federal Drive

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  M&T/NBP
  302

  	
   

  	
  302
  Sentinel Drive

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  M&T/NBP
  320

  	
   

  	
  320
  Sentinel Drive

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  Wells
  Fargo - 6711 Col Gtw Dr

  	
   

  	
  6711
  Columbia Gateway Drive

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  Bank
  of America (VITA-Richmond)

  	
   

  	
  11751
  Meadowville Lane

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  Harrisburg
  Portfolio

  	
   

  	
  2605
  Interstate Drive

  2601 Market Place

  6345 Flank Drive

  6340 Flank Drive

  6400 Flank Drive

  6360 Flank Drive

  6385 Flank Drive

  6380 Flank Drive

  6405 Flank Drive

  6375 Flank Drive

  75 Shannon Road

  85 Shannon Road

  95 Shannon Road

  	
   

  

 

(1) Assignment of Membership Interest (no lien on real
property).

 

 

 

Schedule 6.1(g) - Indebtedness and Guaranties

As of August 31, 2007

 

	
  Loan

  	
   

  	
  JV

  %

  	
   

  	
  Actual

  8/31/2007

  Book Balance

  	
   

  	
  Secured/

  Unsecured

  
	
  Revolver

  	
   

  	
   

  	
   

  	
  327,000,000

  	
   

  	
  U

  
	
  TIAA (suburban office)

  	
   

  	
   

  	
   

  	
  69,496,664

  	
   

  	
  S

  
	
  IDS (9690
  Deereco & Exploration IV)

  	
   

  	
   

  	
   

  	
  12,172,539

  	
   

  	
  S

  
	
  State Farm (132 / 221 NBP)

  	
   

  	
   

  	
   

  	
  23,225,279

  	
   

  	
  S

  
	
  Transoccidental (AEGON) —
  ABD

  	
   

  	
   

  	
   

  	
  18,798,244

  	
   

  	
  S

  
	
  Allstate –– Commons /
  Parkway

  	
   

  	
   

  	
   

  	
  23,014,274

  	
   

  	
  S

  
	
  AEGON –– Concourse &
  AS

  	
   

  	
   

  	
   

  	
  23,640,154

  	
   

  	
  S

  
	
  TIAA — 201/211 NBP

  	
   

  	
   

  	
   

  	
  30,736,679

  	
   

  	
  S

  
	
  State Farm (Gateway
  63/Rivers 95)

  	
   

  	
   

  	
   

  	
  25,083,223

  	
   

  	
  S

  
	
  Northwestern Mutual
  (Westfields I)

  	
   

  	
   

  	
   

  	
  13,800,401

  	
   

  	
  S

  
	
  Allstate - 11800 Tech

  	
   

  	
   

  	
   

  	
  17,680,787

  	
   

  	
  S

  
	
  Allstate - AS III, VI,
  VII & XVIII

  	
   

  	
   

  	
   

  	
  26,521,180

  	
   

  	
  S

  
	
  Aegon - Dulles Tech
  /Ridgeview

  	
   

  	
   

  	
   

  	
  47,886,960

  	
   

  	
  S

  
	
  TIAA - I Dulles Tower/Greens
  2&3

  	
   

  	
   

  	
   

  	
  110,059,864

  	
   

  	
  S

  
	
  TIAA (Pinnacle - assumed)

  	
   

  	
   

  	
   

  	
  61,334,585

  	
   

  	
  S

  
	
  Greenwich

  	
   

  	
   

  	
   

  	
  103,000,000

  	
   

  	
  S

  
	
  LaSalle

  	
   

  	
   

  	
   

  	
  108,543,000

  	
   

  	
  S

  
	
  Goldman Sachs

  	
   

  	
   

  	
   

  	
  146,500,000

  	
   

  	
  S

  
	
  Allstate (W&M)

  	
   

  	
   

  	
   

  	
  5,908,716

  	
   

  	
  S

  
	
  Wachovia (W&M)

  	
   

  	
   

  	
   

  	
  14,392,719

  	
   

  	
  S

  
	
  LaSalle

  	
   

  	
   

  	
   

  	
  150,000,000

  	
   

  	
  S

  
	
  Doug Legum

  	
   

  	
   

  	
   

  	
  750,000

  	
   

  	
  U

  
	
  W&M (Park Circle)

  	
   

  	
   

  	
   

  	
  5,889,426

  	
   

  	
  S

  
	
  GMAC - Crown Point

  	
   

  	
   

  	
   

  	
  16,004,288

  	
   

  	
  S

  
	
  1NG - Corp Point III
  (assumed)

  	
   

  	
   

  	
   

  	
  9,252,884

  	
   

  	
  S

  
	
  Wachovia - Dahlgren IV

  	
   

  	
   

  	
   

  	
  6,298,104

  	
   

  	
  S

  
	
  PNC - Veda I & II

  	
   

  	
   

  	
   

  	
  1,323,892

  	
   

  	
  S

  
	
  Key Bank - Red Cedar

  	
   

  	
   

  	
   

  	
  3,849,007

  	
   

  	
  S

  
	
  Fort Ritchie (Seller take
  back)

  	
   

  	
   

  	
   

  	
  1,689,951

  	
   

  	
  U

  
	
  GMAC - Newport Center

  	
   

  	
   

  	
   

  	
  4,838,484

  	
   

  	
  S

  
	
  Albert Einstein (AE)/State
  Farm

  	
   

  	
   

  	
   

  	
  3,650,645

  	
   

  	
  S

  
	
  7125 Columbia Gateway
  Drive

  	
   

  	
   

  	
   

  	
  37,318,058

  	
   

  	
  S

  
	
  State Farm (W&M)

  	
   

  	
   

  	
   

  	
  5,793,013

  	
   

  	
  S

  
	
  State Farm 2
  (W&M)

  	
   

  	
   

  	
   

  	
  5,492,221

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
  1,133,945,240

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wachovia term loan ($34.5M)

  	
   

  	
   

  	
   

  	
  34,500,000

  	
   

  	
  S

  
	
  M&T/NBP 302

  	
   

  	
   

  	
   

  	
  22,506,089

  	
   

  	
  S

  
	
  M&T/NBP 320

  	
   

  	
   

  	
   

  	
  18,082,714

  	
   

  	
  S

  
	
  Wells Fargo - 6711 Col Gtw
  Dr

  	
   

  	
   

  	
   

  	
  14,777,456

  	
   

  	
  S

  
	
  Bank of America
  (VITA-Richmond)

  	
   

  	
   

  	
   

  	
  43,499,786
  

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  133,366,045

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.5% Exchangeable Senior
  Notes

  	
   

  	
   

  	
   

  	
  200,000,000

  	
   

  	
  U

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  1,794,311,285

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Add: Pro Rata Share of JV
  Debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Harrisburg Portfolio

  	
   

  	
  20

  	
  %

  	
  13,320,000

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COPT’s
  share of JV Debt

  	
   

  	
   

  	
   

  	
  13,320,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Add: Letter or Credits
  (Citigroup)

  	
   

  	
   

  	
   

  	
  666,665

  	
   

  	
   

  
	
  Add: Letter of Credits
  (Nottingham)

  	
   

  	
   

  	
   

  	
  1,075,787

  	
   

  	
   

  
	
  Add: Letter of Credit
  (Release of 7321 Parkway)

  	
   

  	
   

  	
   

  	
  2,643,814

  	
   

  	
   

  
	
  Add: Letter or Credits
  (Other)

  	
   

  	
   

  	
   

  	
  323,653

  	
   

  	
   

  
	
  Add: Capital Lease
  Obligations

  	
   

  	
   

  	
   

  	
  ––

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4,709,919

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Indebtedness

  	
   

  	
   

  	
   

  	
  $

  	
  1,812,341,204

  	
   

  	
   

  
								

 

Note
1: The Revolver balance is as of last Borrowing (9/20/2007).

Note
2: The $666,665 LOC related to Harrisburg JV automatically reduces by $66,667
per calendar quarter commencing on April 1, 2006.

 

 

SCHEDULE
6.1(h)

 

Material
Contracts

 

None

 

 

 

SCHEDULE
6.1(i)

 

Litigation

 

None

 

 

 

Schedule 6.1 (y) -  Unencumbered
Assets

As of August 31, 2007

 

	
  Operating Properties

  	
   

  	
  7%

  

 

	
  Real Property Address

  	
   

  	
  Square Feet

  	
   

  	
  2Q 07

  Cash NOI

  	
   

  	
  2Q 07 Cash NOI

  Annualized

  	
   

  	
  Cap Rate

  @7.0%

  	
   

  	
  2Q 07

  Adjusted

  Cash NOI

  	
   

  
	
  Airport Square II (900 Elkridge Landing Road)

  	
   

  	
  97,261

  	
   

  	
  323,500

  	
   

  	
  1,294,000

  	
   

  	
  18,485,714

  	
   

  	
  317,421

  	
   

  
	
  Airport Square IV (939 Elkridge Landing Road)

  	
   

  	
  53,031

  	
   

  	
  147,733

  	
   

  	
  590,932

  	
   

  	
  8,441,886

  	
   

  	
  144,419

  	
   

  
	
  Airport Square V (921 Elkridge Landing Road)

  	
   

  	
  54,175

  	
   

  	
  188,132

  	
   

  	
  752,528

  	
   

  	
  10,750,400

  	
   

  	
  184,746

  	
   

  
	
  Airport Square XI (9l1 Elkridge Landing Road)

  	
   

  	
  68,296

  	
   

  	
  226,765

  	
   

  	
  907,060

  	
   

  	
  12,958,000

  	
   

  	
  222,497

  	
   

  
	
  Airport Square XIII (1201 Winterson Road)

  	
   

  	
  67,903

  	
   

  	
  184,100

  	
   

  	
  736,400

  	
   

  	
  10,520,000

  	
   

  	
  179,856

  	
   

  
	
  15 Gude Drive

  	
   

  	
  106,928

  	
   

  	
  386,579

  	
   

  	
  1,546,316

  	
   

  	
  22,090,229

  	
   

  	
  379,896

  	
  (1)

  
	
  45 Gude Drive

  	
   

  	
  108,588

  	
   

  	
  424,773

  	
   

  	
  1,699,092

  	
   

  	
  24,272,743

  	
   

  	
  417,986

  	
   

  
	
  110 Thomas Johnson Drive

  	
   

  	
  117,803

  	
   

  	
  275,383

  	
   

  	
  1,101,532

  	
   

  	
  15,736,171

  	
   

  	
  268,020

  	
   

  
	
  318 Sentinel Drive (318 NBP)

  	
   

  	
  125,681

  	
   

  	
  982,317

  	
   

  	
  3,929,268

  	
   

  	
  56,132,400

  	
   

  	
  974,462

  	
   

  
	
  322 Sentinel Drive (322 NBP)

  	
   

  	
  125,568

  	
   

  	
  595,654

  	
   

  	
  2,382,616

  	
   

  	
  34,037,371

  	
   

  	
  587,806

  	
   

  
	
  306 Sentinel Drive (306 NBP)

  	
   

  	
  157,896

  	
   

  	
  664,965

  	
   

  	
  2,659,860

  	
   

  	
  37,998,000

  	
   

  	
  655,097

  	
   

  
	
  9140 Route 108

  	
   

  	
  150,000

  	
   

  	
  502,108

  	
   

  	
  2,008,432

  	
   

  	
  28,691,886

  	
   

  	
  492,733

  	
   

  
	
  140 National Business Parkway

  	
   

  	
  119,904

  	
   

  	
  1,086,299

  	
   

  	
  4,345,196

  	
   

  	
  62,074,229

  	
   

  	
  1,078,805

  	
   

  
	
  2720 Technology Drive (NBP 220)

  	
   

  	
  156,730

  	
   

  	
  1,450,251

  	
   

  	
  5,801,004

  	
   

  	
  82,871,486

  	
   

  	
  1,440,455

  	
   

  
	
  10150 York Road (Sterling York)

  	
   

  	
  178,286

  	
   

  	
  521,805

  	
   

  	
  2,087,220

  	
   

  	
  29,817,429

  	
   

  	
  510,662

  	
   

  
	
  375 W. Padonia Road (the Atrium Bldg)

  	
   

  	
  110,328

  	
   

  	
  299,376

  	
   

  	
  1,197,504

  	
   

  	
  17,107,200

  	
   

  	
  292,481

  	
   

  
	
  16539-16541 Commerce Drive

  	
   

  	
  68,129

  	
   

  	
  214,329

  	
   

  	
  357,316

  	
   

  	
  12,247,371

  	
   

  	
  210,071

  	
   

  
	
  751 - 785 Jolly Road (Blue Bell)

  	
   

  	
  960,349

  	
   

  	
  2,644,220

  	
   

  	
  10,576,880

  	
   

  	
  151,098,286

  	
   

  	
  2,684,198

  	
   

  
	
  8611 Military Drive

  	
   

  	
  468,994

  	
   

  	
  1,146,388

  	
   

  	
  4,585,552

  	
   

  	
  65,507,886

  	
   

  	
  1,117,076

  	
   

  
	
  429 Ridge Road (Princeton Tech 429)

  	
   

  	
  142,385

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
  (2)

  
	
  431 Ridge Road (Princeton Tech 437)

  	
   

  	
  171,200

  	
   

  	
  358,430

  	
   

  	
  1,433,720

  	
   

  	
  20,481,714

  	
   

  	
  347,730

  	
   

  
	
  437 Ridge Road (Princeton Tech 437)

  	
   

  	
  30,000

  	
   

  	
  54,767

  	
   

  	
  219,068

  	
   

  	
  3,129,543

  	
   

  	
  52,892

  	
   

  
	
  2 Centre Drive

  	
   

  	
  16,132

  	
   

  	
  57,321

  	
   

  	
  229,284

  	
   

  	
  3,275,486

  	
   

  	
  56,313

  	
   

  
	
  47 Commerce Drive

  	
   

  	
  41,398

  	
   

  	
  115,091

  	
   

  	
  460,364

  	
   

  	
  6,676,629

  	
   

  	
  112,504

  	
   

  
	
  8 Centre Drive

  	
   

  	
  16,199

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
  (2)

  
	
  23535 Cottonwood Parkway (Tracor 2)

  	
   

  	
  46,656

  	
   

  	
  120,522

  	
   

  	
  482,088

  	
   

  	
  6,886,971

  	
   

  	
  117,606

  	
   

  
	
  44408 Pecan Court (Tracor 4)

  	
   

  	
  50,532

  	
   

  	
  134,042

  	
   

  	
  536,168

  	
   

  	
  7,659,543

  	
   

  	
  130,854

  	
   

  
	
  44414 Pecan Court (Tracor 5)

  	
   

  	
  25,444

  	
   

  	
  53,414

  	
   

  	
  213,656

  	
   

  	
  3,052,229

  	
   

  	
  51,824

  	
   

  
	
  44417 Pecan Court (Veda 7)

  	
   

  	
  29,053

  	
   

  	
  59,944

  	
   

  	
  239,776

  	
   

  	
  3,425,371

  	
   

  	
  58,128

  	
   

  
	
  46591 Expedition Drive (Expedition VI)

  	
   

  	
  60,029

  	
   

  	
  25,890

  	
   

  	
  103,560

  	
   

  	
  1,479,429

  	
   

  	
  22,138

  	
   

  
	
  745 Space Center Drive

  	
   

  	
  50,000

  	
   

  	
  231,179

  	
   

  	
  924,716

  	
   

  	
  13,210,229

  	
   

  	
  228,054

  	
   

  
	
  Patriol Park View (985 Space Center Drive)

  	
   

  	
  102,717

  	
   

  	
  337,184

  	
   

  	
  1,348,736

  	
   

  	
  19,267,657

  	
   

  	
  330,764

  	
   

  
	
  Patriol Park View II (980 Space Center Drive)

  	
   

  	
  33,190

  	
   

  	
  80,510

  	
   

  	
  322,040

  	
   

  	
  4,600,571

  	
   

  	
  78,436

  	
   

  
	
  9965 Federal Drive

  	
   

  	
  41,120

  	
   

  	
  86,327

  	
   

  	
  345,308

  	
   

  	
  4,932,971

  	
   

  	
  83,757

  	
  (1)

  
	
  11311 McCormick Road

  	
   

  	
  212,856

  	
   

  	
  394,381

  	
   

  	
  1,577,524

  	
   

  	
  22,536,057

  	
   

  	
  381,078

  	
   

  
	
  200 International Circle

  	
   

  	
  128,658

  	
   

  	
  142,678

  	
   

  	
  570,712

  	
   

  	
  8,153,029

  	
   

  	
  134,637

  	
   

  
	
  201 International Circle

  	
   

  	
  78,634

  	
   

  	
  186,594

  	
   

  	
  746,376

  	
   

  	
  10,662,514

  	
   

  	
  181,679

  	
   

  
	
  226 Schilling Circle

  	
   

  	
  98,640

  	
   

  	
  344,630

  	
   

  	
  1,378,520

  	
   

  	
  19,693,143

  	
   

  	
  338,465

  	
   

  
	
  11011 McCormick Road

  	
   

  	
  56,512

  	
   

  	
  44,641

  	
   

  	
  178,564

  	
   

  	
  2,550,914

  	
   

  	
  41,109

  	
   

  
	
  11101 McCormick Road

  	
   

  	
  24,232

  	
   

  	
  46,265

  	
   

  	
  185,060

  	
   

  	
  2,643,714

  	
   

  	
  44,751

  	
   

  
	
  7131 Ambassador Road

  	
   

  	
  7,453

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
  (2)

  
	
  7127 Ambassador Road

  	
   

  	
  11,144

  	
   

  	
  7,505

  	
   

  	
  30,020

  	
   

  	
  428,857

  	
   

  	
  6,809

  	
   

  
	
  7129 Ambassador Road

  	
   

  	
  11,075

  	
   

  	
  21,840

  	
   

  	
  87,360

  	
   

  	
  1,248,000

  	
   

  	
  21,148

  	
   

  
	
  7125 Ambassador Road

  	
   

  	
  50,488

  	
   

  	
  99,688

  	
   

  	
  398,752

  	
   

  	
  5,696,457

  	
   

  	
  96,533

  	
   

  
	
  7104 Ambassador Road

  	
   

  	
  29,457

  	
   

  	
  44,359

  	
   

  	
  177,436

  	
   

  	
  2,534,800

  	
   

  	
  42,518

  	
   

  
	
  7102 Ambassador Road

  	
   

  	
  8,879

  	
   

  	
  17,517

  	
   

  	
  70,068

  	
   

  	
  1,000,971

  	
   

  	
  16,962

  	
   

  
	
  7106 Ambassador Road

  	
   

  	
  8,820

  	
   

  	
  14,987

  	
   

  	
  59,948

  	
   

  	
  856,400

  	
   

  	
  14,436

  	
   

  
	
  7108 Ambassador Road

  	
   

  	
  9,018

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  ––

  	
   

  	
  —

  	
  (2)

  
	
  15 Governor’s Court

  	
   

  	
  14,568

  	
   

  	
  14,903

  	
   

  	
  59,612

  	
   

  	
  851,600

  	
   

  	
  13,993

  	
   

  
	
  17 Governor’s Court

  	
   

  	
  14,701

  	
   

  	
  11,294

  	
   

  	
  45,176

  	
   

  	
  645,371

  	
   

  	
  10,375

  	
   

  
	
  21 Governor’s Court

  	
   

  	
  56,063

  	
   

  	
  83,851

  	
   

  	
  335,404

  	
   

  	
  4,791,486

  	
   

  	
  80,347

  	
   

  
	
  7152 Windsor Boulevard

  	
   

  	
  57,855

  	
   

  	
  148,939

  	
   

  	
  595,756

  	
   

  	
  8,510,800

  	
   

  	
  145,323

  	
   

  
	
  7253 Ambassador Road

  	
   

  	
  38,930

  	
   

  	
  84,083

  	
   

  	
  336,332

  	
   

  	
  4,804,743

  	
   

  	
  81,650

  	
   

  
	
  7210 Ambassador Road

  	
   

  	
  83,435

  	
   

  	
  158,092

  	
   

  	
  632,368

  	
   

  	
  9,033,829

  	
   

  	
  152,877

  	
   

  
	
  Subtotal:

  	
   

  	
  5,153,323

  	
   

  	
  15,845,545

  	
   

  	
  63,382,180

  	
   

  	
  905,459,714

  	
   

  	
  15,534,403

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  

 

1

 

	
  Real Property Address

  	
   

  	
  Square Feet

  	
   

  	
  2Q 07

  Cash NOI

  	
   

  	
  2Q 07 Cash NOI

  Annualized

  	
   

  	
  GAAP Book

  Value

  	
   

  	
  2Q 07

  Adjusted

  Cash NOI

  	
   

  
	
  216
  Schilling Circle

  	
   

  	
  36,003

  	
   

  	
  78,901

  	
   

  	
  315,604

  	
   

  	
  5,241,840

  	
   

  	
  76,651

  	
  (3)

  
	
  222 Schilling Circle

  	
   

  	
  28,003

  	
   

  	
  56,009

  	
   

  	
  224,036

  	
   

  	
  3,810,175

  	
   

  	
  54,259

  	
  (3)

  
	
  224
  Schilling Circle

  	
   

  	
  27,372

  	
   

  	
  24,156

  	
   

  	
  96,624

  	
   

  	
  3,857,642

  	
   

  	
  22,445

  	
  (3)

  
	
  7l50
  Riverwood Drive

  	
   

  	
  41,382

  	
   

  	
  144,115

  	
   

  	
  576,460

  	
   

  	
  6,810,160

  	
   

  	
  141,529

  	
  (3)

  
	
  7160
  Riverwood Drive

  	
   

  	
  62,084

  	
   

  	
  210,234

  	
   

  	
   

  	
  840,936

  	
   

  	
  11,664,494

  	
   

  	
  206,354

  	
  (3)

  
	
  7170
  Riverwood Drive

  	
   

  	
  29,162

  	
   

  	
  94,485

  	
   

  	
  377,940

  	
   

  	
  4,865,255

  	
   

  	
  92,662

  	
  (3)

  
	
  9020
  Mendenhall Court

  	
   

  	
  49,259

  	
   

  	
  88,260

  	
   

  	
  353,040

  	
   

  	
  6,165,805

  	
   

  	
  85,181

  	
  (3)

  
	
  8029
  Corporate Drive

  	
   

  	
  25,000

  	
   

  	
  67,436

  	
   

  	
  269,744

  	
   

  	
  4,213,537

  	
   

  	
  65,874

  	
  (3)

  
	
  4940
  Campbell Boulevard (Campbell Com Centre I)

  	
   

  	
  49,813

  	
   

  	
  144,469

  	
   

  	
  577,876

  	
   

  	
  6,780,664

  	
   

  	
  141,356

  	
  (3)

  
	
  8140
  Corporate Drive (Corporate Place I)

  	
   

  	
  75,687

  	
   

  	
  98,885

  	
   

  	
  395,540

  	
   

  	
  11,779,899

  	
   

  	
  94,155

  	
  (3)

  
	
  8110
  Corporate Drive (Corporate Place II)

  	
   

  	
  75,687

  	
   

  	
  285,160

  	
   

  	
  1,140,640

  	
   

  	
  14,148,010

  	
   

  	
  280,430

  	
  (3)

  
	
  9940
  Franklin Square Drive (Franklin Ridge I)

  	
   

  	
  33,134

  	
   

  	
  130,772

  	
   

  	
  523,088

  	
   

  	
  4,879,285

  	
   

  	
  128,701

  	
  (3)

  
	
  9930
  Franklin Square Drive (Franklin Ridge II)

  	
   

  	
  39,750

  	
   

  	
  168,035

  	
   

  	
  672,140

  	
   

  	
  5,986,180

  	
   

  	
  165,551

  	
  (3)

  
	
  9920
  Franklin Square Drive (Franklin Square III)

  	
   

  	
  44,566

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  6,774,830

  	
   

  	
  —

  	
  (2)
  (3)

  
	
  9900
  Franklin Square Drive (Franklin Ridge V)

  	
   

  	
  33,912

  	
   

  	
  122,374

  	
   

  	
  289,496

  	
   

  	
  5,102,347

  	
   

  	
  120,255

  	
  (3)

  
	
  8020
  Corporate Drive (McLean Ridge I)

  	
   

  	
  51,600

  	
   

  	
  157,609

  	
   

  	
  630,436

  	
   

  	
  6,661,009

  	
   

  	
  154,384

  	
  (3)

  
	
  8010
  Corporate Drive (McLean Ridge II)

  	
   

  	
  39,351

  	
   

  	
  78,452

  	
   

  	
  313,308

  	
   

  	
  5,077,007

  	
   

  	
  75,993

  	
  (3)

  
	
  8094
  Sandpiper Circle (McLean Ridge III)

  	
   

  	
  50,812

  	
   

  	
  176,539

  	
   

  	
  706,156

  	
   

  	
  6,558,681

  	
   

  	
  173,363

  	
  (3)

  
	
  8098
  Sandpiper Circle (McLean Ridge IV)

  	
   

  	
  47,680

  	
   

  	
  153,122

  	
   

  	
  612,488

  	
   

  	
  6,116,499

  	
   

  	
  150,142

  	
  (3)

  
	
  5355
  Nottingham Ridge Road (Nottingham Ridge C)

  	
   

  	
  36,981

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  4,277,894

  	
   

  	
  —

  	
  (2)
  (3)

  
	
  5335
  Nottingham Ridge Road (Nottingham Ridge D)

  	
   

  	
  37,322

  	
   

  	
  73,562

  	
   

  	
  294,248

  	
   

  	
  5,300,478

  	
   

  	
  71,229

  	
  (3)

  
	
  10552
  Philadelphia Road

  	
   

  	
  56,000

  	
   

  	
  155,720

  	
   

  	
  622,880

  	
   

  	
  6,208,861

  	
   

  	
  152,220

  	
  (3)

  
	
  8007
  Corporate Drive (Tyler Ridge II)

  	
   

  	
  43,197

  	
   

  	
  130,162

  	
   

  	
  520,648

  	
   

  	
  5,627,767

  	
   

  	
  127,462

  	
  (3)

  
	
  8003
  Corporate Drive (Tyler Ridge II-A)

  	
   

  	
  18,327

  	
   

  	
  70,404

  	
   

  	
  281,616

  	
   

  	
  2,646,550

  	
   

  	
  69,259

  	
  (3)

  
	
  7941
  -7949 Corporate Drive (Tyler Ridge III)

  	
   

  	
  57,600

  	
   

  	
  132,472

  	
   

  	
  529,888

  	
   

  	
  6,299,523

  	
   

  	
  128,872

  	
  (3)

  
	
  5030
  Campbell Boulevard

  	
   

  	
  44,701

  	
   

  	
  60,459

  	
   

  	
  241,836

  	
   

  	
  4,919,261

  	
   

  	
  57,665

  	
  (3)

  
	
  5022
  Campbell Boulevard

  	
   

  	
  27,507

  	
   

  	
  49,089

  	
   

  	
  196,356

  	
   

  	
  2,857,976

  	
   

  	
  47,370

  	
  (3)

  
	
  5024
  Campbell Boulevard

  	
   

  	
  33,79l

  	
   

  	
  67,690

  	
   

  	
  270,760

  	
   

  	
  3,646,507

  	
   

  	
  65,578

  	
  (3)

  
	
  5026
  Campbell Boulevard

  	
   

  	
  30,868

  	
   

  	
  92,674

  	
   

  	
  370,696

  	
   

  	
  3,365,464

  	
   

  	
  90,745

  	
  (3)

  
	
  10001
  Franklin Square Drive (White Marsh Comm Center)

  	
   

  	
  216,000

  	
   

  	
  352,976

  	
   

  	
  1,411,904

  	
   

  	
  6,711,830

  	
   

  	
  339,476

  	
  (3)

  
	
  8114
  Sandpiper Circle (White Marsh Health)

  	
   

  	
  45,399

  	
   

  	
  105,765

  	
   

  	
  423,060

  	
   

  	
  7,422,403

  	
   

  	
  102,928

  	
  (3)

  
	
  4969
  Mercantile Road (White Marsh Hi Tech)

  	
   

  	
  47,574

  	
   

  	
  131,100,

  	
   

  	
  524,400

  	
   

  	
  6,395,263

  	
   

  	
  128,127

  	
  (3)

  
	
  4979
  Mercantile Road (White Marsh Hi Tech)

  	
   

  	
  50,498,

  	
   

  	
  104,074

  	
   

  	
  416,296

  	
   

  	
  6,842,751

  	
   

  	
  100,918

  	
  (3)

  
	
  8615
  Ridgely’s Choice Drive (Ridgely’s Choice)

  	
   

  	
  37,797

  	
   

  	
  34,663

  	
   

  	
  438,652

  	
   

  	
  5,017,087

  	
   

  	
  32,301(

  	
  3)

  
	
  7939
  Honeygo Boulevard (Professional Center I)

  	
   

  	
  28,081

  	
   

  	
  109,620

  	
   

  	
  438,480

  	
   

  	
  4,538,511

  	
   

  	
  107,865(

  	
  3)

  
	
  7923
  Honeygo Boulevard (Professional Center II)

  	
   

  	
  24,049

  	
   

  	
  82,189

  	
   

  	
  328,756

  	
   

  	
  3,267,366

  	
   

  	
  80,686

  	
  (3)

  
	
  8133
  Perry Hall Boulevard (Professional Center III)

  	
   

  	
  27,803

  	
   

  	
  99,482

  	
   

  	
  397,928

  	
   

  	
  4,005,689

  	
   

  	
  97,744

  	
  (3)

  
	
  100
  West Pennsylvania Avenue (Campbell Building)

  	
   

  	
  18,451

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1,871,513

  	
   

  	
  —

  	
  (2)
  (3)

  
	
  102
  West Pennsylvania. Avenue (Royston Building)

  	
   

  	
  49,497

  	
   

  	
  98,236

  	
   

  	
  392,944

  	
   

  	
  5,4l7,705

  	
   

  	
  95,142

  	
  (3)

  
	
  109-111
  Allegheny Avenue (Allegheny Parking)

  	
   

  	
  18,431

  	
   

  	
  222,370

  	
   

  	
  889,480

  	
   

  	
  7,575,763

  	
   

  	
  221,218

  	
  (3)

  
	
  8031
  Corporate Drive

  	
   

  	
  66,000

  	
   

  	
  249,046

  	
   

  	
  996,184

  	
   

  	
  11,017,832

  	
   

  	
  244,921

  	
  (3)

  
	
  Subtotal:

  	
   

  	
  1,856,131

  	
   

  	
  4,700,766

  	
   

  	
  18,803,064

  	
   

  	
  251,727,313

  	
   

  	
  4,591,008

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Unencumbered Operating
  Properties

  	
   

  	
  7,009,454

  	
   

  	
  20,546,311

  	
   

  	
  82,185,244

  	
   

  	
  1,157,187,027

  	
   

  	
  20,125,411

  	
   

  
													

 

1) Projected NOI for first
stabilized quarter used for this building.

2) Negative cash NOI for
quarter; not Included in total.

3) GAAP Book Value used for
these properties required during the past 2 consecutive quarters.

 

2

 

Unencumbered
Wholly-Owned Development Properties

 

	
  Real Property Address

  	
   

  	
  GAAP Book

  Value

  	
   

  
	
  Under Construction

  	
   

  	
   

  	
   

  
	
  5533 Research Park
  Drive(UMBC)

  	
   

  	
  3,664,350

  	
   

  
	
  201 Technology Park Drive
  (COPT Southwest VA. LLC)

  	
   

  	
  17,362,944

  	
   

  
	
  1055 N. Newport Road
  (Acrotech 1)

  	
   

  	
  3,800,250

  	
   

  
	
  1362 Mellon Road
  (Commons-Lot 6B)

  	
   

  	
  7,912,455

  	
   

  
	
  655 Space Center Drive
  (Colorado Springs, CO)

  	
   

  	
  4,346,396

  	
   

  
	
  5520 Research Park Drive
  (UMBC)

  	
   

  	
  1,332,520

  	
   

  
	
   

  	
   

  	
  38,418,915

  	
   

  
	
  Redevelopment/Development

  	
   

  	
   

  	
   

  
	
  Gude Drive Land - Building
  I

  	
   

  	
  4,118,626

  	
   

  
	
  Gude Drive Land Parcel /
  Rockville Corporate Ctr. (Celero/Appelero)

  	
   

  	
  3,541,817

  	
   

  
	
  Gateway Exchange III (6721
  Columbia Gateway Drive)

  	
   

  	
  10,308,970

  	
   

  
	
  WorldCom Land

  	
   

  	
  5,408,716

  	
   

  
	
  Interquest Land

  	
   

  	
  19,615,036

  	
   

  
	
  300 NBP

  	
   

  	
  5,705,585

  	
   

  
	
  3l6 NBP

  	
   

  	
  2,887,502

  	
   

  
	
  16442A Commerce Drive
  (Dehlgren)

  	
   

  	
  907,569

  	
   

  
	
  308 NBP

  	
   

  	
  1,687,588

  	
   

  
	
  Corporate Place III

  	
   

  	
  2,083,082

  	
   

  
	
  Corporate Place IV

  	
   

  	
  2,167,551

  	
   

  
	
  Thomas Johnson Drive
  (Frederick - 6 acres)

  	
   

  	
  1,664,531

  	
   

  
	
  1460 Dorsey Road

  	
   

  	
  2,157,227

  	
   

  
	
  NBP Visitor Control Center

  	
   

  	
  1,711,751

  	
   

  
	
  Clarks Hundred

  	
   

  	
  28,743,950

  	
   

  
	
  312 NBP

  	
   

  	
  3,519,489

  	
   

  
	
  Cedar Knolls

  	
   

  	
  7,620,023

  	
   

  
	
  Columbia Gateway (T-11)

  	
   

  	
  8,795,931

  	
   

  
	
  6741 Columbia Gateway

  	
   

  	
  905,462

  	
   

  
	
  Park Center - Building I

  	
   

  	
  788,851

  	
   

  
	
  Waterview III / Three
  Dulles Tower / Woodland Park

  	
   

  	
  9,680,153

  	
   

  
	
  Fr. Ritchie Land

  	
   

  	
  4,685,371

  	
   

  
	
  Dahlgren Land Parcel

  	
   

  	
  1,068,103

  	
   

  
	
  Westfields Corporate
  Center 19 acres / WTPJ St. Joe’s land

  	
   

  	
  8,382,210

  	
   

  
	
  Blue Bell Corporate Center

  	
   

  	
  11,612,436

  	
   

  
	
  San Antonio - 27 acre land
  parcel

  	
   

  	
  5,906,835

  	
   

  
	
  San Antonio - 31 acre land parcel

  	
   

  	
  7,505,290

  	
   

  
	
  COPT Princeton South

  	
   

  	
  512,310

  	
   

  
	
  Expedition VII. (parcel
  #2)

  	
   

  	
  807,239

  	
   

  
	
  Fort Ritchie - General
  (Land)

  	
   

  	
  4,823,637

  	
   

  
	
  Porrlo Park (Colorado Springs)
  52 acres 7/08/05

  	
   

  	
  13,571,761

  	
   

  
	
  Galley Road

  	
   

  	
  1,060,066

  	
   

  
	
  Acrotech 2

  	
   

  	
  1,291,398

  	
   

  
	
  9965 Federal Land Parcel

  	
   

  	
  466,48S

  	
   

  
	
  Clarks Hundred II

  	
   

  	
  2,462,189

  	
   

  
	
  White Marsh (Lot 401).

  	
   

  	
  1,182,688

  	
   

  
	
  Nottingham Ridge

  	
   

  	
  9,203,671

  	
   

  
	
  10521 Red Run Boulevard

  	
   

  	
  4,436,681

  	
   

  
	
  White Marsh Com. Ctr. II

  	
   

  	
  1,619,071

  	
   

  
	
  Campbell Blvd. &
  Franklin Square

  	
   

  	
  12,432,979

  	
   

  
	
  Nottingham &
  Philadelphia Roads

  	
   

  	
  3,333,420

  	
   

  
	
  Philadelphia
  Rd. & Route 43

  	
   

  	
  1,023,486

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Unencumbered Wholly-Owned
  Development

  	
   

  	
  221,406,796

  	
   

  

 

3

 

Unencumbered
Operational JV Properties

 

	
  4230 Forbes Boulevard

  	
   

  	
  50.0

  	
  %

  	
  77,747

  	
   

  	
  310,988

  	
   

  	
  4,442,686

  	
   

  	
  2,221,343

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,221,343

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unencumbered
  JV Properties Under Construction

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  GAAP
  Book Value

  	
   

  	
   

  	
   

  
	
  2900 Towerview Road

  	
   

  	
  92.5

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
  19,855,746

  	
   

  	
  18,366,565

  	
   

  
	
  7468 Candlewood Road

  	
   

  	
  92.5

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
  26,004,039

  	
   

  	
  24,053,736

  	
   

  
	
  7740 Milestone Parkway

  	
   

  	
  50.0

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
  4,262,000

  	
   

  	
  2,131,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  44,551,301

  	
   

  

 

Unencumbered
JV Properties Development and Land

 

	
  Indian Head, LLC

  	
   

  	
  75.0

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
  3,028,772

  	
   

  	
  2,271,579

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,271,579

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Unencumbered Assets:

  	
   

  	
  1,137,187,027

  	
   

  	
   

  	
   

  
	
  Wholly Owned Operating Properties

  	
   

  	
  38,418,915

  	
   

  	
   

  	
   

  
	
  Wholly Owned Under Construction

  	
   

  	
  221,406,796

  	
   

  	
   

  	
   

  
	
  Wholly Owned Development

  	
   

  	
  2,221,343

  	
   

  	
   

  	
   

  
	
  JV Operating Properties

  	
   

  	
  44,551,301

  	
   

  	
   

  	
   

  
	
  JV Under Construction

  	
   

  	
  2,271,579

  	
   

  	
   

  	
   

  
	
  JV Development

  	
   

  	
  1,466,056,961

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unencumbered Assets

  	
   

  	
   

  	
   

  	
  1,466,056,961

  	
   

  
	
  Less CIP, Development
  & Land (wholly owned & JV), if >35% of Total

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  Less Development/Land
  (wholly-owned & JV), if >15% of Total

  	
   

  	
   

  	
   

  	
  (3,769,831

  	
  )

  
	
  Less Not-Controlled JV if >15%
  of Total

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1,452,287,130

  	
   

  

 

4

 

EXHIBIT A

 

FORM OF
ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

THIS ASSIGNMENT AND ACCEPTANCE
AGREEMENT dated as of                       ,
200   (the “Agreement”) by and among                                                   
(the “Assignor”),                                                   
(the “Assignee”), and KeyBank National Association, as Agent (the “Agent”).

 

WHEREAS, the Assignor is
a Lender under that certain Second Amended and Restated Credit Agreement dated
as of October 1, 2007 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), by and among Corporate
Office Properties, L.P. (the “Borrower”), Corporate Office Properties Trust,
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), the Agent, KeyBanc Capital Markets, as Lead Arranger,                                   ,
as Syndication Agent, and                                                 ,
as Documentation Agent;

 

WHEREAS, the Assignor
desires to assign to the Assignee, among other things, all or a portion of the
Assignor’s Commitment under the Credit Agreement, all on the terms and
conditions set forth herein; and

 

WHEREAS, the Agent
consents to such assignment on the terms and conditions set forth herein;

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged by the parties hereto, the parties hereto hereby agree as follows:

 

Section 1.  Assignment.

 

(a)           Subject to the terms and conditions
of this Agreement and in consideration of the payment to be made by the
Assignee to the Assignor pursuant to Section 2 of this Agreement,
effective as of                         ,
200   (the “Assignment Date”), the Assignor hereby irrevocably sells,
transfers and assigns to the Assignee, without recourse, a $                    
interest (such interest being the “Assigned Commitment”) in and to the Assignor’s
Commitment and all of the other rights and obligations of the Assignor under
the Credit Agreement, such Assignor’s Revolving Note and the other Loan
Documents (representing             %
in respect of the aggregate amount of all Lenders’ Commitments), including
without limitation, a principal amount of outstanding Revolving Loans equal to
$                  
and all voting rights of the Assignor associated with the Assigned Commitment,
all rights to receive interest on such amount of Revolving Loans and all
commitment and other Fees with respect to the Assigned Commitment and other
rights of the Assignor under the Credit Agreement and the other Loan Documents
with respect to the Assigned Commitment, all as if the Assignee were an
original Lender under and signatory to the Credit Agreement having a Commitment
equal to the amount of the Assigned Commitment. 
The Assignee, subject to the terms and conditions hereof, hereby assumes
all obligations of the Assignor with respect to the Assigned Commitment as if
the Assignee were an original Lender under and signatory to the Credit
Agreement having a

 

A-1

 

Commitment equal to the
Assigned Commitment, which obligations shall include, but shall not be limited
to, the obligation of the Assignor to make Revolving Loans to the Borrower with
respect to the Assigned Commitment, the obligation to pay the Agent amounts due
in respect of draws under Letters of Credit as required under Section 2.3.(i) of
the Credit Agreement and the obligation to indemnify the Agent as provided
therein (the foregoing enumerated obligations, together with all other similar
obligations more particularly set forth in the Credit Agreement and the other
Loan Documents, collectively, the “Assigned Obligations”).  The Assignor shall have no further duties or
obligations with respect to, and shall have no further interest in, the
Assigned Obligations or the Assigned Commitment from and after the Assignment
Date.

 

(b)           The assignment by the Assignor to the
Assignee hereunder is without recourse to the Assignor.  The Assignee makes and confirms to the Agent,
the Assignor, and the other Lenders all of the representations, warranties and
covenants of a Lender under Article XI. of the Credit Agreement.  Not in limitation of the foregoing, the
Assignee acknowledges and agrees that, except as set forth in Section 4
below, the Assignor is making no representations or warranties with respect to,
and the Assignee hereby releases and discharges the Assignor for any
responsibility or liability for: (i) the present or future solvency or
financial condition of the Borrower, any Subsidiary or any other Loan Party, (ii) any
representations, warranties, statements or information made or furnished by the
Borrower, any Subsidiary or any other Loan Party in connection with the Credit
Agreement or otherwise, (iii) the validity, efficacy, sufficiency, or
enforceability of the Credit Agreement, any other Loan Document or any other
document or instrument executed in connection therewith, or the collectibility
of the Assigned Obligations, (iv) the perfection, priority or validity of
any Lien with respect to any collateral at any time securing the Obligations or
the Assigned Obligations under the Notes or the Credit Agreement and (v) the
performance or failure to perform by the Borrower or any other Loan Party of
any obligation under the Credit Agreement or any other Loan Document to which
it is a party.  Further, the Assignee
acknowledges that it has, independently and without reliance upon the Agent, or
on any affiliate or subsidiary thereof, the Assignor or any other Lender and based
on the financial statements supplied by the Borrower and such other documents
and information as it has deemed appropriate, made its own credit analysis and
decision to become a Lender under the Credit Agreement.  The Assignee also acknowledges that it will,
independently and without reliance upon the Agent, the Assignor or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement or any other Loan Documents or pursuant to
any other obligation.  Except as
expressly provided in the Credit Agreement, the Agent shall have no duty or
responsibility whatsoever, either initially or on a continuing basis, to
provide the Assignee with any credit or other information with respect to the
Borrower or any other Loan Party or to notify the Assignee of any Default or
Event of Default.  The Assignee has not
relied on the Agent as to any legal or factual matter in connection therewith
or in connection with the transactions contemplated thereunder.

 

Section 2.  Payment by Assignee.  In consideration of the assignment made
pursuant to Section 1 of this Agreement, the Assignee agrees to pay to the
Assignor on the Assignment Date, such amount as they may agree.

 

A-2

 

Section 3.  Payments by Assignor.  The Assignor agrees to pay to the Agent on
the Assignment Date the administration fee, if any, payable under the
applicable provisions of the Credit Agreement.

 

Section 4.  Representations and Warranties of Assignor.  The Assignor hereby represents and warrants
to the Assignee that (a) as of the Assignment Date (i) the Assignor
is a Lender under the Credit Agreement having a Commitment under the Credit
Agreement (without reduction by any assignments thereof which have not yet
become effective), equal to $                        ,
and that the Assignor is not in default of its obligations under the Credit
Agreement; and (ii) the outstanding balance of Revolving Loans owing to
the Assignor (without reduction by any assignments thereof which have not yet
become effective) is $                        ;
and (b) it is the legal and beneficial owner of the Assigned Commitment
which is free and clear of any adverse claim created by the Assignor.

 

Section 5.  Representations, Warranties and Agreements
of Assignee.  The Assignee (a) represents
and warrants that it is (i) legally authorized to enter into this
Agreement, (ii) an “accredited investor” (as such term is used in
Regulation D of the Securities Act) and (iii) an Eligible Assignee; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of
the most recent financial statements delivered pursuant thereto and such other
documents and information (including without limitation the Loan Documents) as
it has deemed appropriate to make its own credit analysis and decision to enter
into this Agreement; (c) appoints and authorizes the Agent to take such
action as contractual representative on its behalf and to exercise such powers
under the Loan Documents as are delegated to the Agent by the terms thereof
together with such powers as are reasonably incidental thereto; and (d) agrees
that it will become a party to and shall be bound by the Credit Agreement and
the other Loan Documents to which the other Lenders are a party on the
Assignment Date and will perform in accordance therewith all of the obligations
which are required to be performed by it as a Lender.

 

Section 6.  Recording and Acknowledgment by the Agent.  Following the execution of this Agreement,
the Assignor will deliver to the Agent (a) a duly executed copy of this
Agreement for acknowledgment and recording by the Agent and (b) the
Assignor’s Revolving Note.  Upon such
acknowledgment and recording, from and after the Assignment Date, the Agent
shall make all payments in respect of the interest assigned hereby (including
payments of principal, interest, Fees and other amounts) to the Assignee.  The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement for periods
prior to the Assignment Date directly between themselves.

 

Section 7.  Addresses.  The Assignee specifies as its address for
notices and its Lending Office for all Loans, the offices set forth below:

 

 Notice Address:

 

	
   

  	
  Telephone No.:

  
	
   

  	
  Telecopy No.:

  

 

A-3

 

 Lending Office:

 

	
   

  	
  Telephone No.:

  
	
   

  	
  Telecopy No.:

  

 

Section 8.  Payment Instructions  All payments to be made to the Assignee under
this Agreement by the Assignor, and all payments to be made to the Assignee
under the Credit Agreement, shall be made as provided in the Credit Agreement
in accordance with the following instructions:

 

Section 9.  Effectiveness of Assignment.  This Agreement, and the assignment and
assumption contemplated herein, shall not be effective until (a) this
Agreement is executed and delivered by each of the Assignor, the Assignee, the
Agent, and if required under Section 12.5. of the Credit Agreement, the
Borrower, and (b) the payment to the Assignor of the amounts, if any,
owing by the Assignee pursuant to Section 2 hereof and (c) the
payment to the Agent of the amounts, if any, owing by the Assignor pursuant to Section 3
hereof.  Upon recording and
acknowledgment of this Agreement by the Agent, from and after the Assignment
Date, (i) the Assignee shall be a party to the Credit Agreement and, to
the extent provided in this Agreement, have the rights and obligations of a
Lender thereunder and (ii) the Assignor shall, to the extent provided in
this Agreement, relinquish its rights (except as otherwise provided in Section 12.10.
of the Credit Agreement) and be released from its obligations under the Credit
Agreement; provided, however, that if the Assignor does not assign its entire
interest under the Loan Documents, it shall remain a Lender entitled to all of
the benefits and subject to all of the obligations thereunder with respect to
its Commitment.

 

Section 10.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 11. Counterparts.  This Agreement may be executed in any number
of counterparts each of which, when taken together, shall constitute one and
the same agreement.

 

Section 12.  Headings.  Section headings have been inserted
herein for convenience only and shall not be construed to be a part hereof.

 

Section 13.  Amendments; Waivers.  This Agreement may not be amended, changed,
waived or modified except by a writing executed by the Assignee and the
Assignor; provided, however, any amendment, waiver or consent which shall
affect the rights or duties of the Agent under this Agreement shall not be
effective unless signed by the Agent.

 

A-4

 

Section 14.  Entire Agreement.  This Agreement embodies the entire agreement
between the Assignor and the Assignee with respect to the subject matter hereof
and supersedes all other prior arrangements and understandings relating to the
subject matter hereof.

 

Section 15.  Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

 

Section 16.  Definitions.  Terms not otherwise defined herein are used
herein with the respective meanings given them in the Credit Agreement.

 

[Include
this Section only if Borrower’s consent is required under Section 12.5.
Section 17.  Agreements of the Borrower.  The Borrower hereby agrees that the Assignee
shall be a Lender under the Credit Agreement having a Commitment equal to the
Assigned Commitment.  The Borrower agrees
that the Assignee shall have all of the rights and remedies of a Lender under
the Credit Agreement and the other Loan Documents as if the Assignee were an
original Lender under and signatory to the Credit Agreement, including, but not
limited to, the right of a Lender to receive payments of principal and interest
with respect to the Assigned Obligations, and to the Revolving Loans made by
the Lenders after the date hereof and to receive the commitment and other Fees
payable to the Lenders as provided in the Credit Agreement.  Further, the Assignee shall be entitled to
the indemnification provisions from the Borrower in favor of the Lenders as
provided in the Credit Agreement and the other Loan Documents.  The Borrower further agrees, upon the
execution and delivery of this Agreement, to execute in favor of the Assignee
Notes as required by Section 12.5. of the Credit Agreement.  Upon receipt by the Assignor of the amounts
due the Assignor under Section 2, the Assignor agrees to surrender to the
Borrower such Assignor’s Notes.]

 

[Signatures on
Following Pages]

 

A-5

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Assignment and Acceptance Agreement as
of the date and year first written above.

 

	
  

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

Accepted as of the
date first written above.

 

AGENT:

 

KEYBANK NATIONAL
ASSOCIATION, 

as Agent

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[Signatures
Continued on Following Page]

 

A-6

 

[Include
signature of the Borrower only if required

under Section 12.5. of the Credit Agreement]

 

Agreed
and consented to as of the

date first written above.

 

BORROWER:

 

CORPORATE OFFICE
PROPERTIES, L.P.

 

 

	
  

  	
  By:

  	
  Corporate Office
  Properties Trust, its

  	
   

  
	
   

  	
   

  	
  general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

A-7

 

EXHIBIT B

 

FORM OF
NOTICE OF BORROWING

 

                        ,
200

 

KeyBank National
Association, as Agent

127 Public Square, 8th Floor

Cleveland, Ohio 
44114

Attn:

 

Ladies and Gentlemen:

 

Reference is made to that
certain Second Amended and Restated Credit Agreement dated as of October 1,
2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among Corporate Office Properties, L.P.
(the “Borrower”), Corporate Office Properties Trust, the financial institutions
party thereto and their assignees under Section 12.5. thereof (the “Lenders”),
KeyBank National Association, as Agent (the “Agent”), and the other parties
thereto.  Capitalized terms used herein,
and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

 

1.             Pursuant to Section 2.1.(b) of
the Credit Agreement, the Borrower hereby requests that the Lenders make
Revolving Loans to the Borrower in an aggregate principal amount equal to $                                      .

 

2.             The Borrower requests that such Revolving
Loans be made available to the Borrower on                         ,
200  .

 

3.             The Borrower hereby requests that the
requested Revolving Loans all be of the following Type:

 

[Check
one box only]

 

o      Base Rate Loans

o      LIBOR Loans, each with an initial Interest Period for
a duration of:

 

	
  

  	
  [Check
  one box only]

  	
  o

  	
  seven days

  
	
   

  	
   

  	
  o

  	
  one month

  
	
   

  	
   

  	
  o

  	
  two months

  
	
   

  	
   

  	
  o

  	
  three months

  
	
   

  	
   

  	
  o

  	
  six months

  

 

4.             The proceeds of this borrowing of
Revolving Loans will be used for the following purpose:                                                                                                                           .

 

B-1

 

5.             The Borrower requests that the proceeds
of this borrowing of Revolving Loans be made available to the Borrower by                                                         .

 

The
Borrower hereby certifies to the Agent and the Lenders that as of the date
hereof and as of the date of the making of the requested Revolving Loans and
after giving effect thereto, (a) no Default or Event of Default exists or
shall exist, and (b) the representations and warranties made or deemed
made by the Borrower and each other Loan Party in the Loan Documents to which
any of them is a party are and shall be true and correct in all material
respects, except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations
and warranties were true and accurate on and as of such earlier date).  In addition, the Borrower certifies to the
Agent and the Lenders that all conditions to the making of the requested
Revolving Loans contained in Article V. of the Credit Agreement will have
been satisfied (or waived in accordance with the applicable provisions of the
Loan Documents) at the time such Revolving Loans are made.

 

If notice of the
requested borrowing of Revolving Loans was previously given by telephone, this
notice is to be considered the written confirmation of such telephone notice
required by Section 2.1.(b) of the Credit Agreement.

 

IN WITNESS WHEREOF, the
undersigned has duly executed and delivered this Notice of Borrowing as of the
date first written above.

 

	
  

  	
  CORPORATE OFFICE
  PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Corporate Office
  Properties Trust, its

  general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

B-2

 

EXHIBIT C

 

FORM OF
NOTICE OF CONTINUATION

 

                        ,
200

 

KeyBank National
Association, as Agent

127 Public Square, 8th Floor

Cleveland, Ohio 
44114

Attn:

 

Ladies and Gentlemen:

 

Reference is made to that
certain Second Amended and Restated Credit Agreement dated as of October 1,
2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among Corporate Office Properties, L.P.
(the “Borrower”), Corporate Office Properties Trust, the financial institutions
party thereto and their assignees under Section 12.5. thereof (the “Lenders”),
KeyBank National Association, as Agent (the “Agent”), and the other parties
thereto.  Capitalized terms used herein,
and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

 

Pursuant to Section 2.8.
of the Credit Agreement, the Borrower hereby requests a Continuation of a
borrowing of Loans under the Credit Agreement, and in that connection sets
forth below the information relating to such Continuation as required by such Section of
the Credit Agreement:

 

1.                                       The proposed date of such Continuation is
                        ,
200    .

 

2.                                       The aggregate principal amount of Loans
subject to the requested Continuation is $                                                
and was originally borrowed by the Borrower on                         ,
200  .

 

3.                                       The portion of such principal amount
subject to such Continuation is $                                                    .

 

4.                                       The current Interest Period for each of
the Loans subject to such Continuation ends on                                 ,
200  .

 

C-1

 

5.                                       The duration of the new Interest Period
for each of such Loans or portion thereof subject to such Continuation is:

 

	
  

  	
  [Check
  one box only]

  	
  o

  	
  seven days

  
	
   

  	
   

  	
  o

  	
  one month

  
	
   

  	
   

  	
  o

  	
  two months

  
	
   

  	
   

  	
  o

  	
  three months

  
	
   

  	
   

  	
  o

  	
  six months

  

 

The Borrower hereby
certifies to the Agent and the Lenders that as of the date hereof, as of the
proposed date of the requested Continuation, and after giving effect to such
Continuation, no Default or Event of Default exists or will exist.

 

If notice of the
requested Continuation was given previously by telephone, this notice is to be
considered the written confirmation of such telephone notice required by Section 2.8.
of the Credit Agreement.

 

IN WITNESS WHEREOF, the
undersigned has duly executed and delivered this Notice of Continuation as of
the date first written above.

 

	
  

  	
  CORPORATE OFFICE
  PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Corporate Office
  Properties Trust, its

  general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

C-2

 

EXHIBIT D

 

FORM OF NOTICE OF
CONVERSION

 

             ,
200  

 

KeyBank National
Association, as Agent

127 Public Square, 8th Floor

Cleveland, Ohio 
44114

 

Attn:             

 

Ladies and Gentlemen:

 

Reference is made to that
certain Second Amended and Restated Credit Agreement dated as of October 1,
2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among Corporate Office Properties, L.P.
(the “Borrower”), Corporate Office Properties Trust, the financial institutions
party thereto and their assignees under Section 12.5. thereof (the “Lenders”),
KeyBank National Association, as Agent (the “Agent”), and the other parties
thereto. Capitalized terms used herein, and not otherwise defined herein, have
their respective meanings given them in the Credit Agreement.

 

Pursuant to
Section 2.9. of the Credit Agreement, the Borrower hereby requests a
Conversion of a borrowing of Loans of one Type into Loans of another Type under
the Credit Agreement, and in that connection sets forth below the information
relating to such Conversion as required by such Section of the Credit
Agreement:

 

1.                                       The
proposed date of such Conversion is                  ,
200  .

 

2.                                       The
Loans to be Converted pursuant hereto are currently:

 

	
  

  	
  [Check one box only]

  	
  o   Base
  Rate Loans

  
	
   

  	
   

  	
  o   LIBOR
  Loans

  

 

 

3.                                       The
aggregate principal amount of Loans subject to the requested Conversion is $                        
and was originally borrowed by the Borrower on                ,
200  .

 

4.                                       The
portion of such principal amount subject to such Conversion is $                           .

 

D-1

 

5.                                       The
amount of such Loans to be so Converted is to be converted into Loans of the
following Type:

 

[Check
one box only]

o      Base Rate Loans

o      LIBOR Loans, each with an
initial Interest Period for a duration of:

 

	
  

  	
  [Check one box only]

  	
   

  	
  o

  	
   seven days

  
	
   

  	
   

  	
  o

  	
   one month

  	 

	
   

  	
   

  	
  o

  	
   two months

  	 

	
   

  	
   

  	
  o

  	
   three months

  	 

	
   

  	
   

  	
  o

  	
   six months

  	 

 

 

The
Borrower hereby certifies to the Agent and the Lenders that as of the date
hereof and as of the date of the requested Conversion and after giving effect
thereto, (a) no Default or Event of Default exists or will exist (provided
the certification under this clause (a) shall not be made in connection
with the Conversion of a Loan into a LIBOR Loan), and (b) the
representations and warranties made or deemed made by the Borrower and each other
Loan Party in the Loan Documents to which any of them is a party are and shall
be true and correct in all material respects, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties were true and accurate on and as
of such earlier date).

 

If notice of the
requested Conversion was given previously by telephone, this notice is to be
considered the written confirmation of such telephone notice required by
Section 2.9. of the Credit Agreement.

 

IN WITNESS WHEREOF, the
undersigned has duly executed and delivered this Notice of Conversion as of the
date first written above.

 

	
   

  	
   

  	
  

  	
  CORPORATE OFFICE PROPERTIES, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Corporate Office Properties Trust, its 

  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
								

 

D-2

 

EXHIBIT E

FORM OF NOTICE OF SWINGLINE BORROWING

            ,
200

KeyBank National
Association, as Agent

127 Public Square, 8th Floor

Cleveland, Ohio 
44114

Attn:                   

Ladies and
Gentlemen:

Reference
is made to that certain Second Amended and Restated Credit Agreement dated as
of October 1, 2007 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), by and among Corporate Office
Properties, L.P. (the “Borrower”), Corporate Office Properties Trust, the
financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), KeyBank National Association, as Agent (the “Agent”),
and the other parties thereto. Capitalized terms used herein, and not otherwise
defined herein, have their respective meanings given them in the Credit
Agreement.

1.                                       Pursuant
to Section 2.2.(b) of the Credit Agreement, the Borrower hereby requests
that the Swingline Lender make a Swingline Loan to the Borrower in an amount
equal to $                        .

2.                                       The
Borrower requests that such Swingline Loan be made available to the Borrower on
                        ,
200   .

3.                                       The
proceeds of this Swingline Loan will be used for the following purpose:

4.                                       The
Borrower requests that the proceeds of such Swingline Loan be made available to
the Borrower by 

The
Borrower hereby certifies to the Agent, the Swingline Lender and the Lenders
that as of the date hereof, as of the date of the making of the requested
Swingline Loan, and after making such Swingline Loan, (a) no Default or
Event of Default exists or will exist, and (b) the representations and
warranties made or deemed made by the Borrower and each other Loan Party in the
Loan Documents to which any of them is a party are and shall be true and correct
in all material respects, except to the extent that such representations and
warranties expressly relate solely to an earlier date (in which case such
representations and warranties were true and accurate on and as of such earlier
date). In addition, the Borrower certifies to the Agent and the Lenders that
all conditions to the making of the requested Swingline Loan contained in
Article V. of the Credit Agreement will have been satisfied at the time
such Swingline Loan is made.

 

E-1

 

If
notice of the requested borrowing of this Swingline Loan was previously given
by telephone, this notice is to be considered the written confirmation of such
telephone notice required by Section 2.2.(b) of the Credit Agreement.

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Swingline Borrowing as of the date first written above.

	
   

  	
  

  	
  CORPORATE OFFICE PROPERTIES, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Corporate Office Properties Trust, its
  general partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

E-2

 

EXHIBIT F

 

FORM OF
SWINGLINE NOTE

 

	
  $50,000,000

  	
   

  	
  October 1,
  2007

  

 

FOR VALUE RECEIVED, the
undersigned, Corporate Office Properties, L.P., a limited partnership formed
under the laws of the State of Delaware (the “Borrower”), hereby promises to
pay to the order of KEYBANK NATIONAL ASSOCIATION (the “Swingline Lender”) to
its address at 127 Public Square, 8th
Floor, Cleveland, Ohio  44114, or
at such other address as may be specified in writing by the Swingline Lender to
the Borrower, the principal sum of FIFTY MILLION AND NO/100 DOLLARS
($50,000,000) (or such lesser amount as shall equal the aggregate unpaid
principal amount of Swingline Loans made by the Swingline Lender to the
Borrower under the Credit Agreement), on the dates and in the principal amounts
provided in the Credit Agreement, and to pay interest on the unpaid principal
amount owing hereunder, at the rates and on the dates provided in the Credit
Agreement.

 

The date, amount of each
Swingline Loan, and each payment made on account of the principal thereof,
shall be recorded by the Swingline Lender on its books and, prior to any
transfer of this Note, endorsed by the Swingline Lender on the schedule
attached hereto or any continuation thereof, provided that the failure of the
Swingline Lender to make any such recordation or endorsement shall not affect
the obligations of the Borrower to make a payment when due of any amount owing
under the Credit Agreement or hereunder in respect of the Swingline Loans.

 

This Note is the
Swingline Note referred to in the Second Amended and Restated Credit Agreement
dated as of October 1, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among the
Borrower, Corporate Office Properties Trust, the financial institutions party
thereto and their assignees under Section 12.5. thereof (the “Lenders”),
KeyBank National Association, as Agent, and the other parties thereto, and
evidences Swingline Loans made to the Borrower thereunder.  Terms used but not otherwise defined in this
Note have the respective meanings assigned to them in the Credit Agreement.

 

The Credit Agreement
provides for the acceleration of the maturity of this Note upon the occurrence
of certain events and for prepayments of Swingline Loans upon the terms and
conditions specified therein.

 

THIS NOTE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH
STATE.

 

This Note is given in
replacement of a Note previously delivered to the Lender under the Existing
Credit Agreement (as defined in the Credit Agreement).  THIS NOTE IS NOT INTENDED TO BE, AND SHALL
NOT BE CONSTRUED TO BE, A NOVATION OF ANY

 

F-1

 

OF THE OBLIGATIONS OWING
UNDER OR IN CONNECTION WITH SUCH OTHER NOTE.

 

The Borrower hereby
waives presentment for payment, demand, notice of demand, notice of non-payment,
protest, notice of protest and all other similar notices.

 

Time is of the essence
for this Note.

 

IN WITNESS WHEREOF, the
undersigned has executed and delivered this Swingline Note under seal as of the
date first written above.

 

	
  

  	
  CORPORATE OFFICE
  PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Corporate Office
  Properties Trust, its

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

F-2

 

SCHEDULE OF
SWINGLINE LOANS

 

This
Note evidences Swingline Loans made under the within-described Credit Agreement
to the Borrower, on the dates and in the principal amounts set forth below,
subject to the payments and prepayments of principal set forth below:

 

	
  Date of Loan

  	
   

  	
  Principal

  Amount of

  Loan

  	
   

  	
  Amount Paid

  or Prepaid

  	
   

  	
  Unpaid

  Principal

  Amount

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

F-3

 

EXHIBIT G

 

FORM OF
REVOLVING NOTE

 

	
  $

  	
  ,200

  

 

FOR
VALUE RECEIVED, the undersigned, CORPORATE OFFICE PROPERTIES, L.P., a limited
partnership formed under the laws of the State of Delaware (the “Borrower”),
hereby promises to pay to the order of                     
(the “Lender”), in care of KeyBank National Association, as Agent (the “Agent”)
at 127 Public Square, 8th Floor, Cleveland,
Ohio  44114, or at such other
address as may be specified in writing by the Agent to the Borrower, the
principal sum of                 
AND     /100 DOLLARS ($            )
(or such lesser amount as shall equal the aggregate unpaid principal amount of
Revolving Loans made by the Lender to the Borrower under the Credit Agreement
(as herein defined)), on the dates and in the principal amounts provided in the
Credit Agreement, and to pay interest on the unpaid principal amount owing
hereunder, at the rates and on the dates provided in the Credit Agreement.

 

The date, amount of each
Revolving Loan made by the Lender to the Borrower, and each payment made on
account of the principal thereof, shall be recorded by the Lender on its books
and, prior to any transfer of this Note, endorsed by the Lender on the schedule
attached hereto or any continuation thereof, provided that the failure of the
Lender to make any such recordation or endorsement shall not affect the
obligations of the Borrower to make a payment when due of any amount owing
under the Credit Agreement or hereunder in respect of the Revolving Loans made
by the Lender.

 

This Note is one of the
Revolving Notes referred to in the Second Amended and Restated Credit Agreement
dated as of October 1, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among the
Borrower, Corporate Office Properties Trust, the financial institutions party
thereto and their assignees under Section 12.5. thereof (the “Lenders”),
the Agent, and the other parties thereto. 
Capitalized terms used herein, and not otherwise defined herein, have
their respective meanings given them in the Credit Agreement.

 

The Credit Agreement
provides for the acceleration of the maturity of this Note upon the occurrence
of certain events and for prepayments of Loans upon the terms and conditions
specified therein.

 

Except as permitted by Section 12.5.
of the Credit Agreement, this Note may not be assigned by the Lender to any
other Person.

 

G-1

 

THIS NOTE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

This Note is given in
replacement of a Note previously delivered to the Lender under the Existing
Credit Agreement (as defined in the Credit Agreement).  THIS NOTE IS NOT INTENDED TO BE, AND SHALL
NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING UNDER OR IN
CONNECTION WITH SUCH OTHER NOTE.

 

The Borrower hereby
waives presentment for payment, demand, notice of demand, notice of non-payment,
protest, notice of protest and all other similar notices.

 

Time is of the essence
for this Note.

 

IN WITNESS WHEREOF, the
undersigned has executed and delivered this Revolving Note under seal as of the
date first written above.

 

	
  

  	
  CORPORATE OFFICE PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Corporate Office Properties Trust, its 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

G-2

 

SCHEDULE OF REVOLVING LOANS

 

This
Note evidences Revolving Loans made under the within-described Credit Agreement
to the Borrower, on the dates, in the principal amounts, bearing interest at
the rates and maturing on the dates set forth below, subject to the payments
and prepayments of principal set forth below:

 

	
   

  	
   

  	
  Principal

  	
   

  	
  Amount

  	
   

  	
  Unpaid

  	
   

  	
   

  	
   

  
	
  Date of

  	
   

  	
  Amount of

  	
   

  	
  Paid or

  	
   

  	
  Principal

  	
   

  	
  Notation

  	
   

  
	
  Loan

  	
   

  	
  Loan

  	
   

  	
  Prepaid

  	
   

  	
  Amount

  	
   

  	
  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

G-3

 

EXHIBIT H

 

FORM OF
OPINION OF COUNSEL

 

[LETTERHEAD OF
COUNSEL TO THE LOAN PARTIES]

 

October 1,
2007

 

KeyBank National
Association, as Agent

127 Public Square, 8th Floor

Cleveland,
Ohio  44114

Attn:

 

The Lenders party
to the Credit Agreement

referred to below

 

Ladies and Gentlemen:

 

We have acted as counsel
to Corporate Office Properties, L.P., a limited partnership formed under the
laws of the State of Delaware (the “Borrower”) in connection with the
negotiation, execution and delivery of that certain Second Amended and Restated
Credit Agreement dated as of October 1, 2007 (the “Credit Agreement”), by
and among the Borrower, Corporate Office Properties Trust, the financial
institutions party thereto and their assignees under Section 12.5. thereof
(the “Lenders”), KeyBank National Association, as Agent (the “Agent”), and the
other parties thereto.  We have also
acted as counsel to each of the Guarantors listed on Schedule 1 attached
hereto (the “Guarantors”; together with the Borrower, the “Loan Parties”), in
connection with the Guaranty and the other Loan Documents identified below to
which they are party.  Capitalized terms
not otherwise defined herein have the respective meaning given them in the
Credit Agreement.

 

In these capacities, we
have reviewed executed copies of the following:

 

(a)                                  the Credit Agreement;

 

(b)                                 the Notes;

 

(c)                                  the Guaranty; and

 

(d)                                 [list other applicable Loan Documents].

 

The documents and
instruments set forth in items (a) through (d) above are referred to
herein as the “Loan Documents”.

 

H-1

 

In addition to the
foregoing, we have reviewed the [articles or certificate of incorporation,
by-laws, declaration of trust, partnership agreement and limited liability
company operating agreement, as applicable,] of each Loan Party and certain
resolutions of the board of trustees or directors, as applicable, of each Loan
Party (collectively, the “Organizational Documents”) and have also examined
originals or copies, certified or otherwise identified to our satisfaction, of
such documents, corporate records, and other instruments, and made such other
investigations of law and fact, as we have deemed necessary or advisable for
the purposes of rendering this opinion. 
In our examination of documents, we assumed the genuineness of all
signatures on documents presented to us as originals (other than the signatures
of officers of the Loan Parties) and the conformity to originals of documents
presented to us as conformed or reproduced copies.

 

Based upon the foregoing,
and subject to all of the qualifications and assumptions set forth herein, we
are of the opinion that:

 

1.             The Parent is a real estate investment trust, duly
organized, validly existing and in good standing under the laws of the State of
Maryland, and has the power to execute and deliver, and to perform its
obligations under, the Loan Documents to which it is a party, to own and use
its assets, and to conduct its business as presently conducted.  The Parent is qualified to transact business as
a foreign real estate investment trust in the following jurisdictions:                                       .

 

2.             The Borrower is a limited partnership, duly organized,
validly existing and in good standing under the laws of the State of Delaware,
and has the power to execute and deliver, and to perform its obligations under,
the Loan Documents to which it is a party, to own and use its assets, and to
conduct its business as presently conducted. 
The Borrower is qualified to transact business as a foreign limited
partnership in the following jurisdictions:                                       .

 

3.             [Insert separate paragraphs or Guarantors with different
corporate structure] Each [Guarantor] is a [corporation, trust, partnership or
limited liability company, as applicable,] duly organized or formed, validly
existing and in good standing under the laws of the State of its organization
or formation and has the power to execute and deliver, and to perform its
obligations under, the Loan Documents to which it is a party, to own and use
its assets, and to conduct its business as presently conducted.  Each [Guarantor] is qualified to transact
business as a foreign [corporation, trust, partnership or limited liability
company, as applicable,] in the indicated jurisdictions set forth on
Schedule I attached hereto.

 

4.             Each Loan Party has duly authorized the execution and
delivery of the Loan Documents to which it is a party and the performance by
such Loan Party of all of its obligations under each such Loan Document.

 

5.             Each Loan Party has duly executed and delivered the Loan
Documents to which it is a party.

 

H-2

 

6.             The execution and delivery by each Loan Party of the
Loan Documents to which it is a party do not, and if each Loan Party were now
to perform its obligations under such Loan Documents, such performance would
not, result in any:

 

(a)           violation of such Loan Party’s
Organizational Documents;

 

(b)           violation of any existing federal or
state constitution, statute, regulation, rule, order, or law to which such Loan
Party or its assets are subject;

 

(c)           breach or violation of or default
under, any agreement, instrument, indenture or other document evidencing any
indebtedness for money borrowed or any other material agreement to which, to
our knowledge, such Loan Party is bound or under which a Loan Party or its
assets is subject;

 

(d)           creation or imposition of a lien or
security interest in, on or against the assets of such Loan Party under any
agreement, instrument, indenture or other document evidencing any indebtedness
for money borrowed or any other material agreement to which, to our knowledge,
such Loan Party is bound or under which a Loan Party or its assets is subject;
or

 

(e)           violation of any judicial or administrative
decree, writ, judgment or order to which, to our knowledge, such Loan Party or
its assets are subject.

 

7.             The execution, delivery and performance by each Loan
Party of each Loan Document to which it is a party, and the consummation of the
transactions thereunder, do not and will not require any registration with,
consent or approval of, or notice to, or other action to, with or by, any
Governmental Authority of the United States of America or the States of                    ,
                   
or                    .

 

8.             To our knowledge, there are no judgments outstanding
against any of the Loan Parties or affecting any of their respective assets,
nor is there any litigation or other proceeding against any of the Loan Parties
or its assets pending or overtly threatened, could reasonably be expected to
have a materially adverse effect on (a) the business, assets, liabilities,
condition (financial or otherwise), results of operations or business prospects
of the Borrower or any other Loan Party or (b) the validity or
enforceability of any of the Loan Documents.

 

9.             None of the Loan Parties is, or, after giving effect to
any Loan will be, subject to the Investment Company Act of 1940 or to any
federal or state statute or regulation limiting its ability to incur
indebtedness for borrowed money.

 

10.           No transfer, mortgage, intangible,
documentary stamp or similar taxes are payable by the Agent or the Lenders to
the States of              
or               
or any political subdivision thereof in connection with (a) the execution
and delivery of the Loan Documents or (b) the creation of the Indebtedness
and the other Obligations evidenced by any of the Loan Documents.

 

H-3

 

11.           Assuming that Borrower applies the
proceeds of the Loans as provided in the Credit Agreement, the transactions
contemplated by the Loan Documents do not violate the provisions of Regulations
T, U or X of the Board of Governors of the Federal Reserve System of the United
States of America.

 

12.           The consideration to be paid to the
Agent and the Lenders for the financial accommodations to be provided to the
Loan Parties pursuant to the Credit Agreement does not violate any law of the
States of                
or                 
relating to interest and usury.

 

This opinion is limited
to the laws of the States of                     ,
                    
and                     
and the federal laws of the United States of America, and we express no
opinions with respect to the law of any other jurisdiction.

 

[Other Customary
Qualifications/Assumptions/Limitations]

 

This opinion is furnished
to you solely for your benefit in connection with the consummation of the
transactions contemplated by the Credit Agreement and may not be relied upon by
any other Person, other than an Assignee of a Lender, or for any other purpose
without our express, prior written consent.

 

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF LAW FIRM]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  A Partner

  
				

 

H-4

 

SCHEDULE 1

 

Guarantors

 

	
  Name

  	
   

  	
  Jurisdiction
  of Formation

  	
   

  	
  Jurisdictions
  of Foreign

  Qualification

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

H-5

 

EXHIBIT I

 

FORM OF
COMPLIANCE CERTIFICATE

 

                 ,
200

 

KeyBank National
Association, as Agent

127 Public Square, 8th Floor

Cleveland, Ohio  44114

Attn:

 

Each
of the Lenders Party to the Credit Agreement

referred to below

 

Ladies and Gentlemen:

 

Reference is made to that
certain Second Amended and Restated Credit Agreement dated as of October 1,
2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among Corporate Office Properties, L.P.
(the “Borrower”), Corporate Office Properties Trust, the financial institutions
party thereto and their assignees under Section 12.5. thereof (the “Lenders”),
KeyBank National Association, as Agent (the “Agent”) and the other parties
thereto.  Capitalized terms used herein,
and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

 

Pursuant to Section 8.3.
of the Credit Agreement, the undersigned hereby certifies to the Agent and the
Lenders as follows:

 

(1)           The undersigned is the                                
of the Borrower.

 

(2)           The undersigned has examined the
books and records of the Borrower and has conducted such other examinations and
investigations as are reasonably necessary to provide this Compliance Certificate.

 

(3)           No Default or Event of Default exists
[if such is not the case, specify such Default or
Event of Default and its nature, when it occurred and whether it is continuing
and the steps being taken by the Borrower with respect to such event, condition
or failure].

 

(4)           The representations and warranties
made or deemed made by the Borrower and the other Loan Parties in the Loan
Documents to which any is a party, are true and correct in all material
respects on and as of the date hereof except to the extent that such
representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties shall have been true and
accurate on and as of such earlier date).

 

I-1

 

(5)           Attached hereto as Schedule 1
are reasonably detailed calculations establishing whether or not the Borrower
and its Subsidiaries were in compliance with the covenants contained in Section 9.1.
of the Credit Agreement.

 

IN WITNESS WHEREOF, the
undersigned has executed this certificate as of the date first above written.

 

 

	
  

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

I-2

 

Schedule
1

 

[Calculations
to be Attached]

 

I-3

 

EXHIBIT J

 

FORM OF
GUARANTY

 

THIS GUARANTY dated as of
October 1, 2007, executed and delivered by each of the undersigned and the
other Persons from time to time party hereto pursuant to the execution and
delivery of an Accession Agreement in the form of Annex I hereto (all of the
undersigned, together with such other Persons each a “Guarantor” and
collectively, the “Guarantors”) in favor of (a) KEYBANK NATIONAL
ASSOCIATION its capacity as Agent (the “Agent”) for the Lenders under that
certain Second Amended and Restated Credit Agreement dated as of October 1,
2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among Corporate Office Properties, L.P.
(the “Borrower”), Corporate Office Properties Trust, the financial institutions
party thereto and their assignees under Section 12.5. thereof (the “Lenders”),
the Agent, and the other parties thereto, and (b) the Lenders and the
Swingline Lender.

 

WHEREAS, pursuant to the
Credit Agreement, the Agent, the Lenders and the Swingline Lender have agreed
to make available to the Borrower certain financial accommodations on the terms
and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower and
each of the Guarantors, though separate legal entities, are mutually dependent
on each other in the conduct of their respective businesses as an integrated
operation and have determined it to be in their mutual best interests to obtain
financing from the Agent, the Lenders and the Swingline Lender through their
collective efforts;

 

WHEREAS, each Guarantor
acknowledges that it will receive direct and indirect benefits from the Agent,
the Lenders and the Swingline Lender making such financial accommodations
available to the Borrower under the Credit Agreement and, accordingly, each
Guarantor is willing to guarantee the Borrower’s obligations to the Agent, the
Lenders and the Swingline Lender on the terms and conditions contained herein;
and

 

WHEREAS, each Guarantor’s
execution and delivery of this Guaranty is a condition to the Agent and the
Lenders making, and continuing to make, such financial accommodations to the
Borrower.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by each Guarantor, each Guarantor agrees as follows:

 

Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably
and unconditionally guaranties the due and punctual payment and performance
when due, whether at stated maturity, by acceleration or otherwise, of all of
the following (collectively referred to as the “Guarantied Obligations”): (a) all
indebtedness and obligations owing by the Borrower to any Lender, the Swingline
Lender or the Agent under or in connection with the Credit Agreement and any
other Loan Document, including without limitation, the repayment of all
principal of the Revolving Loans, Swingline Loans and the Reimbursement
Obligations, and the payment of all interest,

 

J-1

 

Fees, charges, attorneys’
fees and other amounts payable to any Lender or the Agent thereunder or in
connection therewith; (b) any and all extensions, renewals, modifications,
amendments or substitutions of the foregoing; (c) all expenses, including,
without limitation, reasonable attorneys’ fees and disbursements, that are
incurred by the Lenders and the Agent in the enforcement of any of the
foregoing or any obligation of such Guarantor hereunder; and (d) all other
Obligations.

 

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and
not of collection, and a debt of each Guarantor for its own account.  Accordingly, none of the Lenders, the
Swingline Lender or the Agent shall be obligated or required before enforcing
this Guaranty against any Guarantor: (a)  to pursue any right or remedy
any of them may have against the Borrower, any other Guarantor or any other
Person or commence any suit or other proceeding against the Borrower, any other
Guarantor or any other Person in any court or other tribunal; (b) to make
any claim in a liquidation or bankruptcy of the Borrower, any other Guarantor
or any other Person; or (c) to make demand of the Borrower, any other
Guarantor or any other Person or to enforce or seek to enforce or realize upon
any collateral security held by the Lenders, the Swingline Lender or the Agent
which may secure any of the Guarantied Obligations.

 

Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied
Obligations will be paid strictly in accordance with the terms of the documents
evidencing the same, regardless of any Applicable Law now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Agent, the Lenders or the Swingline Lender with respect thereto.  The liability of each Guarantor under this
Guaranty shall be absolute, irrevocable and unconditional in accordance with
its terms and shall remain in full force and effect without regard to, and
shall not be released, suspended, discharged, terminated or otherwise affected
by, any circumstance or occurrence whatsoever, including without limitation,
the following (whether or not such Guarantor consents thereto or has notice
thereof):

 

(a)           (i) any change in the amount,
interest rate or due date or other term of any of the Guarantied Obligations, (ii) any
change in the time, place or manner of payment of all or any portion of the
Guarantied Obligations, (iii) any amendment or waiver of, or consent to
the departure from or other indulgence with respect to, the Credit Agreement,
any other Loan Document, or any other document or instrument evidencing or
relating to any Guarantied Obligations, or (iv) any waiver, renewal,
extension, addition, or supplement to, or deletion from, or any other action or
inaction under or in respect of, the Credit Agreement, any of the other Loan
Documents, or any other documents, instruments or agreements relating to the
Guarantied Obligations or any other instrument or agreement referred to therein
or evidencing any Guarantied Obligations or any assignment or transfer of any
of the foregoing;

 

(b)           any lack of validity or
enforceability of the Credit Agreement, any of the other Loan Documents, or any
other document, instrument or agreement referred to therein or evidencing any
Guarantied Obligations or any assignment or transfer of any of the foregoing;

 

J-2

 

(c)           any furnishing to the Agent, the
Lenders or the Swingline Lender of any security for the Guarantied Obligations,
or any sale, exchange, release or surrender of, or realization on, any
collateral securing any of the Obligations;

 

(d)           any settlement or compromise of any
of the Guarantied Obligations, any security therefor, or any liability of any
other party with respect to the Guarantied Obligations, or any subordination of
the payment of the Guarantied Obligations to the payment of any other liability
of the Borrower or any other Loan Party;

 

(e)           any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to such Guarantor, the Borrower, any other Loan Party or
any other Person, or any action taken with respect to this Guaranty by any
trustee or receiver, or by any court, in any such proceeding;

 

(f)            any act or failure to act by the
Borrower, any other Loan Party or any other Person which may adversely affect
such Guarantor’s subrogation rights, if any, against the Borrower to recover
payments made under this Guaranty;

 

(g)           any nonperfection or impairment of
any security interest or other Lien on any collateral, if any, securing in any
way any of the Obligations;

 

(h)           any application of sums paid by the
Borrower, any other Guarantor or any other Person with respect to the
liabilities of the Borrower to the Agent, the Lenders or the Swingline Lender,
regardless of what liabilities of the Borrower remain unpaid;

 

(i)            any defect, limitation or
insufficiency in the borrowing powers of the Borrower or in the exercise
thereof; or

 

(j)            any other circumstance which might
otherwise constitute a defense available to, or a discharge of, a Guarantor
hereunder (other than indefeasible payment and performance in full).

 

Section 4.  Action with Respect to Guarantied
Obligations.  The Lenders and the
Agent may, at any time and from time to time, without the consent of, or notice
to, any Guarantor, and without discharging any Guarantor from its obligations
hereunder, take any and all actions described in Section 3 and may
otherwise: (a) amend, modify, alter or supplement the terms of any of the
Guarantied Obligations, including, but not limited to, extending or shortening
the time of payment of any of the Guarantied Obligations or changing the
interest rate that may accrue on any of the Guarantied Obligations; (b) amend,
modify, alter or supplement the Credit Agreement or any other Loan Document; (c) sell,
exchange, release or otherwise deal with all, or any part, of any collateral
securing any of the Obligations; (d) release any other Loan Party or other
Person liable in any manner for the payment or collection of the Guarantied
Obligations; (e) exercise, or refrain from exercising, any rights against
the Borrower, any other Guarantor or any other Person; and (f) apply any
sum, by whomsoever paid or however realized, to the Guarantied Obligations in
such order as the Lenders shall elect.

 

J-3

 

Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Agent, the
Lenders and the Swingline Lender all of the representations and warranties made
by the Borrower with respect to or in any way relating to such Guarantor in the
Credit Agreement and the other Loan Documents, as if the same were set forth
herein in full.

 

Section 6.  Covenants.  Each Guarantor will comply with all covenants
which the Borrower is to cause such Guarantor to comply with under the terms of
the Credit Agreement or any of the other Loan Documents.

 

Section 7.  Waiver.  Each Guarantor, to the fullest extent
permitted by Applicable Law, hereby waives notice of acceptance hereof or any
presentment, demand, protest or notice of any kind, and any other act or thing,
or omission or delay to do any other act or thing, which in any manner or to
any extent might vary the risk of such Guarantor or which otherwise might
operate to discharge such Guarantor from its obligations hereunder.

 

Section 8.  Inability to Accelerate Loan.  If the Agent, the Swingline Lender and/or the
Lenders are prevented under Applicable Law or otherwise from demanding or
accelerating payment of any of the Guarantied Obligations by reason of any
automatic stay or otherwise, the Agent, the Swingline Lender and/or the Lenders
shall be entitled to receive from each Guarantor, upon demand therefor, the
sums which otherwise would have been due had such demand or acceleration
occurred.

 

Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Agent, any
Lender or the Swingline Lender for repayment or recovery of any amount or
amounts received in payment or on account of any of the Guarantied Obligations,
and the Agent, such Lender or the Swingline Lender repays all or part of said
amount by reason of (a) any judgment, decree or order of any court or
administrative body of competent jurisdiction, or (b) any settlement or
compromise of any such claim effected by the Agent, such Lender or the
Swingline Lender with any such claimant (including the Borrower or a trustee in
bankruptcy for the Borrower), then and in such event each Guarantor agrees that
any such judgment, decree, order, settlement or compromise shall be binding on
it, notwithstanding any revocation hereof or the cancellation of the Credit
Agreement, any of the other Loan Documents, or any other instrument evidencing
any liability of the Borrower, and such Guarantor shall be and remain liable to
the Agent, such Lender or the Swingline Lender for the amounts so repaid or
recovered to the same extent as if such amount had never originally been paid
to the Agent, such Lender or the Swingline Lender.

 

Section 10.  Subrogation.  Upon the making by any Guarantor of any
payment hereunder for the account of the Borrower, such Guarantor shall be
subrogated to the rights of the payee against the Borrower; provided, however,
that such Guarantor shall not enforce any right or receive any payment by way
of subrogation or otherwise take any action in respect of any other claim or
cause of action such Guarantor may have against the Borrower arising by reason
of any payment or performance by such Guarantor pursuant to this Guaranty,
unless and until all of the Guarantied Obligations have been indefeasibly paid
and performed in full.  If any amount
shall be paid to such Guarantor on account of or in respect of such subrogation
rights or other claims or causes of action, such Guarantor shall hold such amount
in trust for the benefit of the Agent,

 

J-4

 

the Lenders and the
Swingline Lender and shall forthwith pay such amount to the Agent to be
credited and applied against the Guarantied Obligations, whether matured or
unmatured, in accordance with the terms of the Credit Agreement or to be held
by the Agent as collateral security for any Guarantied Obligations existing.

 

Section 11.  Payments Free and Clear.  All sums payable by each Guarantor hereunder,
whether of principal, interest, Fees, expenses, premiums or otherwise, shall be
paid in full, without set-off or counterclaim or any deduction or withholding
whatsoever (including any Taxes), and if any Guarantor is required by
Applicable Law or by a Governmental Authority to make any such deduction or
withholding, such Guarantor shall pay to the Agent, the Lenders and the
Swingline Lender such additional amount as will result in the receipt by the
Agent, the Lenders and the Swingline Lender of the full amount payable
hereunder had such deduction or withholding not occurred or been required.

 

Section 12.  Set-off.  In addition to any rights now or hereafter
granted under any of the other Loan Documents or Applicable Law and not by way
of limitation of any such rights, each Guarantor hereby authorizes the Agent
and each Lender, at any time during the continuance of an Event of Default,
without any prior notice to such Guarantor or to any other Person, any such
notice being hereby expressly waived, but in the case of a Lender or
Participant subject to receipt of the prior written consent of the Agent
exercised in its sole discretion, to set off and to appropriate and to apply
any and all deposits (general or special, including, but not limited to,
indebtedness evidenced by certificates of deposit, whether matured or
unmatured) and any other indebtedness at any time held or owing by the Agent,
such Lender, or any affiliate of the Agent or such Lender, to or for the credit
or the account of such Guarantor against and on account of any of the
Guarantied Obligations, although such obligations shall be contingent or
unmatured. Each Guarantor agrees, to the fullest extent permitted by Applicable
Law, that any Participant may exercise rights of setoff or counterclaim and
other rights with respect to its participation as fully as if such Participant
were a direct creditor of such Guarantor in the amount of such participation.

 

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and
agrees for the benefit of the Agent, the Lenders and the Swingline Lender that
all obligations and liabilities of the Borrower to such Guarantor of whatever
description, including without limitation, all intercompany receivables of such
Guarantor from the Borrower (collectively, the “Junior Claims”) shall be
subordinate and junior in right of payment to all Guarantied Obligations.  If an Event of Default shall exist, then no
Guarantor shall accept any direct or indirect payment (in cash, property or
securities, by setoff or otherwise) from the Borrower on account of or in any
manner in respect of any Junior Claim until all of the Guarantied Obligations
have been indefeasibly paid in full.

 

Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the
Agent, the Lenders and the Swingline Lender that in any Proceeding, such
Guarantor’s maximum obligation hereunder shall equal, but not exceed, the
maximum amount which would not otherwise cause the obligations of such
Guarantor hereunder (or any other obligations of such Guarantor to the Agent,
the Lenders and the Swingline Lender) to be avoidable or unenforceable against
such Guarantor in such Proceeding as a result of Applicable Law, including
without limitation,

 

J-5

 

(a) Section 548
of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (b) any
state fraudulent transfer or fraudulent conveyance act or statute applied in
such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code
or otherwise.  The Applicable Laws under
which the possible avoidance or unenforceability of the obligations of such
Guarantor hereunder (or any other obligations of such Guarantor to the Agent,
the Lenders and the Swingline Lender) shall be determined in any such
Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the
obligations of any Guarantor hereunder would otherwise be subject to avoidance
under the Avoidance Provisions, the maximum Guarantied Obligations for which
such Guarantor shall be liable hereunder shall be reduced to that amount which,
as of the time any of the Guarantied Obligations are deemed to have been
incurred under the Avoidance Provisions, would not cause the obligations of
such Guarantor hereunder (or any other obligations of such Guarantor to the
Agent, the Lenders and the Swingline Lender), to be subject to avoidance under
the Avoidance Provisions.  This Section is
intended solely to preserve the rights of the Agent, the Lenders and the
Swingline Lender hereunder to the maximum extent that would not cause the
obligations of any Guarantor hereunder to be subject to avoidance under the
Avoidance Provisions, and no Guarantor or any other Person shall have any right
or claim under this Section as against the Agent, the Lenders and the
Swingline Lender that would not otherwise be available to such Person under the
Avoidance Provisions.

 

Section 15.  Information.  Each Guarantor assumes all responsibility for
being and keeping itself informed of the financial condition of the Borrower
and the other Guarantors, and of all other circumstances bearing upon the risk
of nonpayment of any of the Guarantied Obligations and the nature, scope and
extent of the risks that such Guarantor assumes and incurs hereunder, and
agrees that none of the Agent, the Lenders or the Swingline Lender shall have
any duty whatsoever to advise any Guarantor of information regarding such
circumstances or risks.

 

Section 16.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

SECTION 17.  WAIVER OF JURY TRIAL.

 

(a)           EACH PARTY HERETO ACKNOWLEDGES THAT
ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF
THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND
WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT AND EACH GUARANTOR HEREBY WAIVES
ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE
IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST
ANY PARTY HERETO ARISING OUT OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR BY
REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR
AMONG ANY GUARANTOR, THE AGENT OR

 

J-6

 

ANY OF THE LENDERS OF ANY
KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

(b)           EACH OF THE GUARANTORS, THE AGENT AND
EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT COURT LOCATED IN THE
SOUTHERN DISTRICT OF NEW YORK OR, ANY STATE COURT LOCATED IN THE BOROUGH OF
MANHATTAN, NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE
ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE
LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR ANY OTHER LOAN
DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  EACH GUARANTOR AND EACH OF THE LENDERS
EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR
DISPUTES.  EACH PARTY FURTHER WAIVES ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS
BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE
SAME.  THE CHOICE OF FORUM SET FORTH IN
THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY
THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY
JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

 

(c)           THE PROVISIONS OF THIS SECTION HAVE
BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL
UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT
OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN
DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE
TERMINATION OF THIS GUARANTY.

 

Section 18.  Loan Accounts.  The Agent, each Lender and the Swingline
Lender may maintain books and accounts setting forth the amounts of principal,
interest and other sums paid and payable with respect to the Guarantied
Obligations, and in the case of any dispute relating to any of the outstanding
amount, payment or receipt of any of the Guarantied Obligations or otherwise,
the entries in such books and accounts shall be deemed conclusive evidence of
the amounts and other matters set forth herein, absent manifest error.  The failure of the Agent, any Lender or the
Swingline Lender to maintain such books and accounts shall not in any way
relieve or discharge any Guarantor of any of its obligations hereunder.

 

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Agent,
any Lender or the Swingline Lender in the exercise of any right or remedy it
may have against any Guarantor hereunder or otherwise shall operate as a waiver
thereof, and no single or partial exercise by the Agent, any Lender or the
Swingline Lender of any such right or remedy shall preclude any other or
further exercise thereof or the exercise of any other such right or remedy.

 

J-7

 

Section 20.  Termination.  This Guaranty shall remain in full force and
effect until indefeasible payment in full of the Guarantied Obligations and the
other Obligations and the termination or cancellation of the Credit Agreement
in accordance with its terms.

 

Section 21.  Successors and Assigns.  Each reference herein to the Agent or the
Lenders shall be deemed to include such Person’s respective successors and
assigns (including, but not limited to, any holder of the Guarantied
Obligations) in whose favor the provisions of this Guaranty also shall inure,
and each reference herein to each Guarantor shall be deemed to include such
Guarantor’s successors and assigns, upon whom this Guaranty also shall be
binding.  The Lenders and the Swingline
Lender may, in accordance with the applicable provisions of the Credit
Agreement, assign, transfer or sell any Guarantied Obligation, or grant or sell
participations in any Guarantied Obligations, to any Person without the consent
of, or notice to, any Guarantor and without releasing, discharging or modifying
any Guarantor’s obligations hereunder. 
Subject to Section 12.8. of the Credit Agreement, each Guarantor
hereby consents to the delivery by the Agent or any Lender to any Eligible
Assignee or Participant (or any prospective Eligible Assignee or Participant)
of any financial or other information regarding the Borrower or any
Guarantor.  No Guarantor may assign or
transfer its obligations hereunder to any Person without the prior written
consent of all Lenders and any such assignment or other transfer to which all
of the Lenders have not so consented shall be null and void.

 

Section 22.  JOINT AND SEVERAL OBLIGATIONS.  THE OBLIGATIONS OF THE GUARANTORS HEREUNDER
SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH GUARANTOR CONFIRMS THAT IT IS
LIABLE FOR THE FULL AMOUNT OF THE “GUARANTIED OBLIGATIONS” AND ALL OF THE
OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER.

 

Section 23.  Amendments.  This Guaranty may not be amended except in
writing signed by the Requisite Lenders (or all of the Lenders if required
under the terms of the Credit Agreement), the Agent and each Guarantor.

 

Section 24.  Payments.  All payments to be made by any Guarantor
pursuant to this Guaranty shall be made in Dollars, in immediately available
funds to the Agent at the Principal Office, not later than 2:00 p.m. on
the date of demand therefor.

 

Section 25.  Notices.  All notices, requests and other
communications hereunder shall be in writing (including facsimile transmission
or similar writing) and shall be given (a) to each Guarantor at its
address set forth below its signature hereto, (b) to the Agent, any Lender
or the Swingline Lender at its respective address for notices provided for in
the Credit Agreement, or (c) as to each such party at such other address
as such party shall designate in a written notice to the other parties.  Each such notice, request or other
communication shall be effective (i) if mailed, when received or when
receipt is refused; (ii) if telecopied, when transmitted; or (iii) if
hand delivered, when delivered; provided, however, that any notice of a change
of address for notices shall not be effective until received.

 

J-8

 

Section 26.  Severability.  In case any provision of this Guaranty shall
be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

Section 27.  Headings.  Section headings used in this Guaranty
are for convenience only and shall not affect the construction of this
Guaranty.

 

Section 28.  Limitation of Liability.  Neither the Agent nor any Lender, nor any
affiliate, officer, director, employee, attorney, or agent of the Agent or any
Lender, shall have any liability with respect to, and each Guarantor hereby
waives, releases, and agrees not to sue any of them upon, any claim for any
special, indirect, incidental, or consequential damages suffered or incurred by
a Guarantor in connection with, arising out of, or in any way related to, this
Guaranty or any of the other Loan Documents, or any of the transactions
contemplated by this Guaranty, the Credit Agreement or any of the other Loan
Documents.  Each Guarantor hereby waives,
releases, and agrees not to sue the Agent or any Lender or any of the Agent’s
or any Lender’s affiliates, officers, directors, employees, attorneys, or
agents for punitive damages in respect of any claim in connection with, arising
out of, or in any way related to, this Guaranty, the Credit Agreement or any of
the other Loan Documents, or any of the transactions contemplated by Credit
Agreement or financed thereby.

 

Section 29.  Definitions.  (a) For the purposes of this Guaranty:

 

“Proceeding” means
any of the following: (i) a voluntary or involuntary case concerning any
Guarantor shall be commenced under the Bankruptcy Code of 1978, as amended; (ii) a
custodian (as defined in such Bankruptcy Code or any other applicable
bankruptcy laws) is appointed for, or takes charge of, all or any substantial
part of the property of any Guarantor; (iii) any other proceeding under
any Applicable Law, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding-up or composition for adjustment of debts, whether now
or hereafter in effect, is commenced relating to any Guarantor; (iv) any
Guarantor is adjudicated insolvent or bankrupt; (v) any order of relief or
other order approving any such case or proceeding is entered by a court of
competent jurisdiction; (vi) any Guarantor makes a general assignment for
the benefit of creditors; (vii) any Guarantor shall fail to pay, or shall
state that it is unable to pay, or shall be unable to pay, its debts generally
as they become due; (viii) any Guarantor shall call a meeting of its
creditors with a view to arranging a composition or adjustment of its debts; (ix) any
Guarantor shall by any act or failure to act indicate its consent to, approval
of or acquiescence in any of the foregoing; or (x) any corporate action
shall be taken by any Guarantor for the purpose of effecting any of the
foregoing.

 

(b)           Terms not otherwise defined herein
are used herein with the respective meanings given them in the Credit
Agreement.

 

[Signature on Next
Page]

 

J-9

 

IN WITNESS WHEREOF, each
Guarantor has duly executed and delivered this Guaranty as of the date and year
first written above.

 

	
  

  	
   

  	
  CORPORATE OFFICE
  PROPERTIES TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [OTHER
  GUARANTORS]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for
  Notices for all Guarantors:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o Corporate
  Office Properties, L.P.

  
	
   

  	
   

  	
  6711 Columbia
  Gateway Drive, Suite 300

  
	
   

  	
   

  	
  Columbia,
  Maryland 21046

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
  Telephone Number: (443) 285-5400

  
	
   

  	
   

  	
  Telecopy Number: (443) 285-7650

  

 

J-10

 

ANNEX I

 

FORM OF
ACCESSION AGREEMENT

 

THIS ACCESSION AGREEMENT
dated as of                  ,
200    , executed and delivered by                          ,
a                      
(the “New Guarantor”), in favor of (a) KEYBANK NATIONAL ASSOCIATION, in
its capacity as Agent (the “Agent”) for the Lenders under that certain Second
Amended and Restated Credit Agreement dated as of October 1, 2007 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among Corporate Office Properties, L.P. (the “Borrower”),
Corporate Office Properties Trust, the financial institutions party thereto and
their assignees under Section 12.5. thereof (the “Lenders”), the Agent,
and the other parties thereto, and (b) the Lenders and the Swingline
Lender.

 

WHEREAS, pursuant to the
Credit Agreement, the Agent, the Lenders and the Swingline Lender have agreed
to make available to the Borrower certain financial accommodations on the terms
and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower,
the New Guarantor, and the existing Guarantors, though separate legal entities,
are mutually dependent on each other in the conduct of their respective
businesses as an integrated operation and have determined it to be in their
mutual best interests to obtain financing from the Agent, the Lenders and the
Swingline Lender through their collective efforts;

 

WHEREAS, the New
Guarantor acknowledges that it will receive direct and indirect benefits from
the Agent, the Lenders and the Swingline Lender making such financial
accommodations available to the Borrower under the Credit Agreement and,
accordingly, the New Guarantor is willing to guarantee the Borrower’s
obligations to the Agent, the Lenders and the Swingline Lender on the terms and
conditions contained herein; and

 

WHEREAS, the New
Guarantor’s execution and delivery of this Agreement is a condition to the
Agent, the Lenders and the Swingline Lender continuing to make such financial
accommodations to the Borrower.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the New Guarantor, the New Guarantor agrees as follows:

 

Section 1.  Accession to Guaranty.  The New Guarantor hereby agrees that it is a “Guarantor”
under that certain Guaranty dated as of October 1, 2007 (as amended,
supplemented, restated or otherwise modified from time to time, the “Guaranty”),
made by each Subsidiary of the Borrower a party thereto in favor of the Agent,
the Lenders and the Swingline Lender and assumes all obligations of a “Guarantor”
thereunder, all as if the New Guarantor had been an original signatory to the
Guaranty.  Without limiting the
generality of the foregoing, the New Guarantor hereby:

 

J-11

 

(a)           irrevocably and unconditionally
guarantees the due and punctual payment and performance when due, whether at
stated maturity, by acceleration or otherwise, of all Guarantied Obligations
(as defined in the Guaranty);

 

(b)           makes to the Agent, the Lenders and
the Swingline Lender as of the date hereof each of the representations and
warranties contained in Section 5 of the Guaranty and agrees to be bound
by each of the covenants contained in Section 6 of the Guaranty; and

 

(c)           consents and agrees to each provision
set forth in the Guaranty.

 

SECTION 2.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 3.  Definitions.  Capitalized terms used herein and not
otherwise defined herein shall have their respective defined meanings given
them in the Credit Agreement.

 

[Signatures on
Next Page]

 

J-12

 

IN WITNESS WHEREOF, the
New Guarantor has caused this Accession Agreement to be duly executed and
delivered under seal by its duly authorized officers as of the date first
written above.

 

	
  

  	
   

  	
  [NEW GUARANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o Corporate
  Office Properties, L.P.

  
	
   

  	
   

  	
  6711 Columbia
  Gateway Drive, Suite 300

  
	
   

  	
   

  	
  Columbia,
  Maryland 21046

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
  Telephone Number:     (443)            
  

  
	
   

  	
   

  	
  Telecopy Number:       (443)              
  

  

 

	
  Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KEYBANK NATIONAL ASSOCIATION,

  as Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

J-13

 

EXHIBIT K

 

Patriot Act and OFAC Transferee and Assignee Identifying
Information Form

 

1.                                      Patriot Act Checklist

 

	
  ADDITIONAL LENDER REQUIRED INFORMATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Identification

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)    (US Company) TIN

  	
   

  	
  (a)

  
	
  (b)    (Non-US) Gov’t issued
  document certifying existence

  	
   

  	
  (b)

  
	
   

  	
   

  	
   

  
	
  Phone Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BUSINESS REPRESENTATIVE REQUIRED INFORMATION PERSON WHO WILL
  EXECUTE DOCUMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Residential Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Birth

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Form of Identification

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)    (US
  Citizen) Social Security Number

  	
   

  	
  (a)

  
	
  (b)    (No-US) TIN, Passport Number (country of

  issuance, number & date), or Alien Identification Number

  	
   

  	
  (b)

  

 

2.             OFAC Checklist:

 

	
  Name:

  	
   

  
	
   

  	
   

  
	
  Co-Lenders

  	
   

  
	
   

  	
   

  
	
  General Partner/Managing Member/Trustee

  	
   

  
	
   

  	
   

  
	
  Limited Partners/Members/Beneficiaries

  	
   

  

 

K-1Exhibit 10.3

 

EXECUTION
COPY

 

PURCHASE AGREEMENT AND

 

AGREEMENT AND PLAN OF MERGER

 

DATED AS OF DECEMBER 21, 2006

 

BY AND

 

AMONG

 

CORPORATE OFFICE PROPERTIES TRUST,

 

CORPORATE OFFICE PROPERTIES, L.P.,

 

W&M BUSINESS TRUST,

 

AND

 

NOTTINGHAM VILLAGE, INC.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I. CERTAIN DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.01.

  	
  Certain
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II. PURCHASE AND SALE OF OWNERSHIP
  INTERESTS IN NPI ENTITIES

  	
  14

  
	
   

  	
   

  	
   

  
	
  2.01.

  	
  Purchase
  and Sale of the Ownership Interests

  	
  14

  
	
  2.02.

  	
  Purchase
  Price

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. THE MERGER

  	
  14

  
	
   

  	
   

  	
   

  
	
  3.01.

  	
  The
  Merger

  	
  14

  
	
  3.02.

  	
  Effective
  Date and Effective Time; Closing

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV. MERGER CONSIDERATION; EXCHANGE
  PROCEDURES

  	
  16

  
	
   

  	
   

  	
   

  
	
  4.01.

  	
  Conversion
  of Shares

  	
  16

  
	
  4.02.

  	
  Exchange
  Procedures

  	
  17

  
	
  4.03.

  	
  Adjustments

  	
  18

  
	
  4.04.

  	
  Deposit

  	
  19

  
	
  4.05.

  	
  Deposit
  of Escrow Shares and Additional Escrow Shares

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. CONDUCT OF THE PARTIES PENDING
  CLOSING

  	
  20

  
	
   

  	
   

  	
   

  
	
  5.01.

  	
  Conduct
  of Business by Target

  	
  20

  
	
  5.02.

  	
  Conduct
  of Acquiror

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI. REPRESENTATIONS AND WARRANTIES

  	
  22

  
	
   

  	
   

  	
   

  
	
  6.01.

  	
  Target
  Disclosure Letter

  	
  22

  
	
  6.02.

  	
  Representations
  and Warranties of Target

  	
  22

  
	
  6.03.

  	
  Representations
  and Warranties of Acquiror, Acquiror OP and Merger Subsidiary

  	
  38

  
	
  6.04.

  	
  Representations
  and Warranties of Acquiror and Acquiror OP

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII. COVENANTS

  	
  45

  
	
   

  	
   

  	
   

  
	
  7.01.

  	
  Stockholders’
  Meeting

  	
  45

  
	
  7.02.

  	
  Registration
  Statement

  	
  46

  
	
  7.03.

  	
  Access
  to Information; Confidentiality

  	
  46

  
	
  7.04.

  	
  No-Shop
  Clause

  	
  47

  
	
  7.05.

  	
  Further
  Action; Reasonable Efforts

  	
  49

  
	
  7.06.

  	
  Public
  Announcements

  	
  50

  

 

 

	
  7.07.

  	
  Escrow
  and Indemnification

  	
  50

  
	
  7.08.

  	
  Intentionally
  Deleted

  	
  55

  
	
  7.09.

  	
  Transfer
  Taxes

  	
  55

  
	
  7.10.

  	
  Additional
  Acknowledgement #2

  	
  55

  
	
  7.11.

  	
  Lender’s
  Approval

  	
  55

  
	
  7.12.

  	
  Termination
  of Management Agreements

  	
  56

  
	
  7.13.

  	
  Short
  Term Loan

  	
  56

  
	
  7.14.

  	
  Tenant
  Improvements

  	
  56

  
	
  7.15.

  	
  Sewer
  System Escrow

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII. ADDITIONAL AGREEMENTS

  	
  57

  
	
   

  	
   

  	
   

  
	
  8.01.

  	
  Inspection
  of the Target Properties

  	
  57

  
	
  8.02.

  	
  Prepayment
  of Indebtedness

  	
  58

  
	
  8.03.

  	
  Acquisition
  of Joint Venture Interests; Disposal of Properties

  	
  58

  
	
  8.04.

  	
  Prorations
  and Adjustments

  	
  58

  
	
  8.05.

  	
  Articles
  Supplementary

  	
  61

  
	
  8.06.

  	
  Intellectual
  Property

  	
  61

  
	
  8.07.

  	
  COBRA
  Agreements

  	
  61

  
	
  8.08.

  	
  Certain
  Agreements

  	
  61

  
	
  8.09.

  	
  Reciprocal
  Release

  	
  62

  
	
  8.10.

  	
  Lockbox

  	
  62

  
	
  8.11.

  	
  Final
  Tax Returns

  	
  62

  
	
  8.12.

  	
  Insurance
  Proceeds

  	
  62

  
	
  8.13.

  	
  Satisfaction
  of Dollenberg Retirement Obligations

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX. CONDITIONS TO CONSUMMATION OF THE
  TRANSACTION AND CLOSING DELIVERIES

  	
  62

  
	
   

  	
   

  	
   

  
	
  9.01.

  	
  Conditions
  to the Obligations of Each Party

  	
  62

  
	
  9.02.

  	
  Conditions
  to the Obligations of Acquiror, Acquiror OP and Merger Subsidiary

  	
  63

  
	
  9.03.

  	
  Conditions
  to the Obligations of Target

  	
  64

  
	
  9.04.

  	
  Deliveries
  by Target

  	
  65

  
	
  9.05.

  	
  Deliveries
  by Acquiror

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE X. TERMINATION

  	
  67

  
	
   

  	
   

  	
   

  
	
  10.01.

  	
  Termination

  	
  67

  
	
  10.02.

  	
  Effect
  of Termination

  	
  69

  
	
  10.03.

  	
  Fees
  and Expenses

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI. GENERAL PROVISIONS

  	
  70

  
	
   

  	
   

  	
   

  
	
  11.01.

  	
  Survival
  of Representations and Warranties

  	
  70

  
	
  11.02.

  	
  Notices

  	
  70

  
	
  11.03.

  	
  Severability

  	
  71

  
	
  11.04.

  	
  Amendment

  	
  72

  

 

 

	
  11.05.

  	
  Entire
  Agreement; Assignment

  	
  72

  
	
  11.06.

  	
  Parties
  in Interest

  	
  72

  
	
  11.07.

  	
  Specific
  Performance

  	
  72

  
	
  11.08.

  	
  Governing
  Law

  	
  73

  
	
  11.09.

  	
  Waiver
  of Jury Trial

  	
  73

  
	
  11.10.

  	
  Headings

  	
  73

  
	
  11.11.

  	
  Counterparts

  	
  73

  
	
  11.12.

  	
  Mutual
  Drafting

  	
  73

  
	
  11.13.

  	
  Time
  is of the Essence

  	
  73

  

 

 

SCHEDULES AND EXHIBITS

 

	
  Schedule
  1.

  	
  Purchase
  Properties

  	
  S-1-1

  
	
   

  	
   

  	
   

  
	
  Schedule
  2.

  	
  Merger
  Properties

  	
  S-2-1

  
	
   

  	
   

  	
   

  
	
  Schedule
  3.

  	
  Retail
  Properties

  	
  S-3-1

  
	
   

  	
   

  	
   

  
	
  Schedule
  4.

  	
  NPI
  Exchange Properties

  	
  S-4-1

  
	
   

  	
   

  	
   

  
	
  Schedule
  5.

  	
  Assumed
  Loans

  	
  S-5-1

  
	
   

  	
   

  	
   

  
	
  Exhibit A.

  	
  Articles
  Supplementary

  	
  A-1

  
	
   

  	
   

  	
   

  
	
  Exhibit B.

  	
  Registration
  Rights Agreement

  	
  B-1

  
	
   

  	
   

  	
   

  
	
  Exhibit C.

  	
  Articles
  of Merger

  	
  C-1

  
	
   

  	
   

  	
   

  
	
  Exhibit D.

  	
  Wachovia
  Release

  	
  D-1

  
	
   

  	
   

  	
   

  
	
  Exhibit E.

  	
  License
  Agreement

  	
  E-1

  
	
   

  	
   

  	
   

  
	
  Exhibit F.

  	
  Notice
  to Tenants

  	
  F-1

  
	
   

  	
   

  	
   

  
	
  Exhibit G.

  	
  FIRPTA
  Affidavit

  	
  G-1

  
	
   

  	
   

  	
   

  
	
  Exhibit H.

  	
  Legal
  Opinions of Gordon Feinblatt

  	
  H-1

  
	
   

  	
   

  	
  H-2

  
	
   

  	
   

  	
   

  
	
  Exhibit I.

  	
  Affidavits
  for Anchor Title Company

  	
  I-1

  
	
   

  	
   

  	
  I-2

  
	
   

  	
   

  	
  I-3

  
	
   

  	
   

  	
  I-4

  
	
   

  	
   

  	
   

  
	
  Exhibit J.

  	
  Tenant
  Estoppel Certificate

  	
  J-1

  
	
   

  	
   

  	
   

  
	
  Exhibit K.

  	
  Reciprocal
  Release

  	
  K-1

  
	
   

  	
   

  	
   

  
	
  Exhibit L.

  	
  First
  Amendment to Retirement Agreement

  	
  L-1

  
	
   

  	
   

  	
   

  
	
  Exhibit M.

  	
  Legal
  Opinion of DLA Piper US LLP

  	
  M-1

  
	
   

  	
   

  	
   

  
	
  Exhibit N.

  	
  Acknowledgement
  of P. Douglas Dollenberg

  	
  N-1

  
	
   

  	
   

  	
   

  
	
  Exhibit O.

  	
  Additional
  Acknowledgement #1 of P. Douglas Dollenberg

  	
  O-1

  
	
   

  	
   

  	
   

  
	
  Exhibit P.

  	
  Additional
  Acknowledgement #2 of P. Douglas Dollenberg

  	
  P-1

  

 

 

TARGET DISCLOSURE LETTER

 

	
  Section 5.01(b)

  	
   

  	
  Acquisitions

  
	
  Section 6.02(a)(ii)

  	
   

  	
  Target
  Subsidiaries

  
	
  Section 6.02(a)(iv)

  	
   

  	
  Target
  Voting Securities

  
	
  Section 6.02(a)(vi)

  	
   

  	
  Additional
  Target Subsidiary Information

  
	
  Section 6.02(b)(i)

  	
   

  	
  Target
  Stockholders

  
	
  Section 6.02(b)(ii)

  	
   

  	
  Debt
  Instruments

  
	
  Section 6.02(b)(iv)

  	
   

  	
  Voting
  Agreements

  
	
  Section 6.02(d)(i)

  	
   

  	
  Conflicts

  
	
  Section 6.02(d)(ii)

  	
   

  	
  Consents
  and Filings

  
	
  Section 6.02(e)

  	
   

  	
  Permits

  
	
  Section 6.02(f)

  	
   

  	
  Litigation

  
	
  Section 6.02(g)(iii)

  	
   

  	
  Tenant
  Improvements and Properties under Construction and Acquisition

  
	
  Section 6.02(g)(iv)

  	
   

  	
  Violations
  of Law

  
	
  Section 6.02(g)(v)

  	
   

  	
  Purchase
  Options

  
	
  Section 6.02(g)(vi)

  	
   

  	
  Restrictions
  on Transfer

  
	
  Section 6.02(g)(viii)

  	
   

  	
  Condemnation
  Proceedings

  
	
  Section 6.02(g)(x)

  	
   

  	
  Rent
  Roll; Delinquency Report; Violations

  
	
  Section 6.02(g)(xii)

  	
   

  	
  Invalid
  Leases; Intention to Vacate

  
	
  Section 6.02(g)(xiii)

  	
   

  	
  Tenant
  Claims against Rent

  
	
  Section 6.02(g)(xiv)

  	
   

  	
  Defaults

  
	
  Section 6.02(g)(xv)

  	
   

  	
  Tenant
  Insolvency

  
	
  Section 6.02(g)(xvii)

  	
   

  	
  Commitments;
  Commissions

  
	
  Section 6.02(g)(xix)

  	
   

  	
  Letters
  of Credit

  
	
  Section 6.02(g)(xx)

  	
   

  	
  Additional
  Notices

  
	
  Section 6.02(i)(ii)

  	
   

  	
  Tax
  Assessments; Audited Tax Returns

  
	
  Section 6.02(i)(iv)

  	
   

  	
  “S
  corporation” Election

  
	
  Section 6.02(i)(vi)

  	
   

  	
  Built-in
  Gains

  
	
  Section 6.02(i)(viii)

  	
   

  	
  Excluded
  Tax Assets

  
	
  Section 6.02(i)(xvi)

  	
   

  	
  Tax
  Basis of Acquired Assets

  
	
  Section 6.02(i)(xviii)

  	
   

  	
  Tax
  Basis of Certain NPI Properties

  
	
  Section 6.02(j)

  	
   

  	
  Environmental
  Matters

  
	
  Section 6.02(k)

  	
   

  	
  Scheduled
  Contracts

  
	
  Section 6.02(l)

  	
   

  	
  Insurance
  Policies; Cancellation of Policies; Claims

  
	
  Section 6.02(l)(i)

  	
   

  	
  Insurance
  Loss Runs

  
	
  Section 6.02(m)

  	
   

  	
  Related
  Party Transactions

  
	
  Section 6.02(o)(ii)

  	
   

  	
  Employee
  Benefit Plans; Deferred Compensation Plans and Obligations

  
	
  Section 6.02(q)

  	
   

  	
  Personal
  Property

  
	
  Section 7.09(a)

  	
   

  	
  Acquiror
  Transfer Taxes

  
	
  Section 7.09(b)

  	
   

  	
  Joint
  Transfer Taxes

  
	
  Section 7.09(c)

  	
   

  	
  Target
  Transfer Taxes

  
	
  Section 7.11

  	
   

  	
  Office
  Assumed Loan Documents

  

 

 

	
  Section 7.12

  	
   

  	
  Property
  Management Agreements

  
	
  Section 8.02

  	
   

  	
  Existing
  Indebtedness; Properties Securing Existing Indebtedness

  
	
  Section 8.04(iii)

  	
   

  	
  Letters
  of Credit Posted as Security Deposits

  
	
  Section 9.02(f)

  	
   

  	
  Tenant
  Estoppels

  
	
  Section 9.02(h)

  	
   

  	
  Corporate
  Dissolutions

  
	
  Section 9.02(j)

  	
   

  	
  Officers
  Life Insurance Loans

  
	
  Section 9.04(n)

  	
   

  	
  Estoppels
  from Community Associations

  

 

 

PURCHASE AGREEMENT AND AGREEMENT AND PLAN OF MERGER, dated as of December 21,
2006 (this “Agreement”),
among Corporate Office Properties Trust, a Maryland real estate investment
trust (“Acquiror”),
Corporate Office Properties, L.P., a Delaware limited partnership (“Acquiror OP”),
W&M Business Trust, a Maryland business trust (“Merger Subsidiary”),
and Nottingham Village, Inc. (“Target”), a Maryland corporation.

 

RECITALS

 

WHEREAS, Nottingham Properties, Inc.,
a Maryland corporation (“NPI”)
owns, through one or more subsidiaries, the commercial office properties and
the appurtenances thereto and the partnership and membership interests listed
on Schedule 1 hereto (the “Purchase Properties”) and Target will own,
immediately prior to the Closing Date, the commercial office properties and
tracts of land listed on Schedule 2 hereto and the appurtenances thereto
through one or more subsidiaries (the “Merger Properties,”);

 

WHEREAS, Acquiror OP desires to
purchase and NPI desires to sell the percentage of ownership interests in the
entities owning the Purchase Properties as more particularly set forth on Schedule
1 hereto;

 

WHEREAS, prior to the Merger, Target
intends to dispose of certain residential and other non-office properties,
related entities assets and contracts to the Liquidating Trust or to third
parties;

 

WHEREAS, one (1) day following
the Merger, the Surviving Entity shall dispose of the ownership interests in
the entities (the “Retail
Entities”) owning the retail properties listed on Schedule 3
hereto (the “Retail
Properties”) by consummating an exchange under Section 1031
of the Code (the “Exchange”)
with NPI whereby the Surviving Entity will exchange the ownership interests in
the Retail Entities for the ownership interests in the entities (the “NPI Exchange Entities”)
owning those properties listed on Schedule 4 hereto (the “NPI Exchange Properties”);

 

WHEREAS, the Board of Trustees of
Acquiror and the Board of Directors of Target have each adopted a resolution
declaring that the merger of Target with and into Merger Subsidiary (the “Merger”), with Merger
Subsidiary continuing as the surviving entity in the Merger in accordance with
the MGCL, is advisable and have approved this Agreement;

 

WHEREAS, it is intended that, for
U.S. federal income tax purposes, the Merger shall qualify as a reorganization
within the meaning of Section 368(a) of the Internal Revenue Code of
1986, as amended (the “Code”),
and that this Agreement shall constitute, and is hereby adopted as, a plan of
reorganization;

 

WHEREAS, Acquiror, Acquiror OP,
Merger Subsidiary and Target desire to make certain representations, warranties
and agreements in connection with the Merger.

 

 

NOW, THEREFORE, in consideration of the
premises and of the mutual covenants, representations, warranties and
agreements contained herein, and intending to be legally bound hereby, the
parties agree as follows:

 

ARTICLE I.

CERTAIN DEFINITIONS

 

1.01.       Certain Definitions.

 

The
following terms are used in this Agreement with the meanings set forth below:

 

“Acquiror” has the
meaning set forth in the preamble to this Agreement.

 

“Acquiror Bylaws”
means the bylaws of Acquiror.

 

“Acquiror Common Shares”
means common shares of beneficial interest, $.01 par value per share, of
Acquiror.

 

“Acquiror Convertible Preferred Shares”
means the 5.6% convertible Acquiror Preferred Shares, $50.00 liquidation
preference per share, of Acquiror, with such terms as are set forth in the
Articles Supplementary.

 

“Acquiror Declaration of Trust”
means the declaration of trust of Acquiror.

 

“Acquiror Material Adverse Effect”
means any event, circumstance, change or effect that adversely affects the
financial condition or results of operations of Acquiror in an amount in excess
of $100,000,000, that was not reasonably foreseeable at the date of this
Agreement; provided, however, that none of the following shall
be deemed to constitute or shall be taken into account in determining whether
there has been an “Acquiror Material Adverse Effect”:  (i) any event, circumstance, change or
effect arising out of or attributable to (A) any changes in the United
States or global economy or capital, financial or securities markets generally,
including changes in interest or exchange rates, (B) the commencement or
escalation of a war or armed hostilities or the occurrence of acts of terrorism
or sabotage, (C) any changes in general economic, legal, regulatory or
political conditions in the geographic regions in which Acquiror operates, (D) earthquakes,
hurricanes or other natural disasters, and (E) changes in Law or GAAP or (ii) any
existing event, circumstance, change or effect with respect to which Target has
knowledge as of the date hereof.

 

“Acquiror OP” has the
meaning set forth in the preamble to this Agreement.

 

“Acquiror Preferred Shares”
means preferred shares of beneficial interest, $.01 par value per share, of
Acquiror.

 

“Acquiror SEC Documents”
has the meaning set forth in Section 6.04(b).

 

2

 

“Acquiror Shares”
means the Acquiror Common Shares and Acquiror Preferred Shares, collectively.

 

“Acquiror Subsidiary”
or “Acquiror
Subsidiaries” means a Subsidiary or Subsidiaries of Acquiror.

 

“Acquisition Agreement”
means the Acquisition Agreement dated August 17, 2005 by and between
Honeygo Run Reclamation Center, Inc. and Target.

 

“Acquisition Proposal”
has the meaning set forth in Section 7.04(a).

 

“Action” means any
claim, action, suit, proceeding, arbitration, mediation or other investigation
as to which written notice has been provided to the applicable party.

 

“Additional Escrow Shares”
has the meaning set forth in Section 4.05(b).

 

“Additional Share Escrow Agreement”
means the escrow agreement among the Share Escrow Agent, Acquiror, Acquiror OP,
Merger Subsidiary and Stockholders’ Agent with respect to the Additional Escrow
Shares.

 

“Affiliate” means,
with respect to any Person, any other Person which directly or indirectly
controls, is controlled by or is under common control with such Person.  For purposes of the immediately preceding
sentence, the term “control”
(including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”),
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through ownership of voting securities, by
contract or otherwise.

 

“Aggregate Closing Adjustments”
has the meaning set forth in Section 4.01(a).

 

“Agreement” means this
Agreement, as amended or modified from time to time in accordance with Section 11.04.

 

“Applicable Date” has
the meaning set forth in Section 6.04(b).

 

“Applicable Permits”
has the meaning set forth in Section 6.02(e).

 

“Articles of Merger”
has the meaning set forth in Section 3.02(b).

 

“Articles Supplementary”
means the Articles Supplementary to the Acquiror Declaration of Trust setting
forth the terms of the Acquiror Convertible Preferred Shares, in the form
attached hereto as Exhibit A.

 

“Assumed Loans” means
the loans listed in Schedule 5 hereto.

 

“Assumption Fees” has
the meaning set forth in Section 7.11(b).

 

“Blue Sky Laws” means
the state securities laws of the several States.

 

3

 

“Business Day” means
Monday through Friday of each week, except a legal holiday recognized as such
by the U.S. Government or any day on which banking institutions in the State of
Maryland are authorized or obligated to close.

 

“Calculation Price”
means the average closing price on the NYSE of the Acquiror Common Shares over
a period of twenty (20) trading days, ending on the tenth (10th) trading day prior to the
Closing Date; provided, however,
that such price shall equal a minimum of $43.00 per share and a maximum of
$49.00 per share.

 

“Cash Escrow Agent”
means Anchor Title Company.

 

“Cash Escrow Agreement”
means the escrow agreement among the Cash Escrow Agent, Acquiror, Acquiror OP,
Merger Subsidiary and Target with respect to investment and payment of the
Deposit.

 

“Certificate” or “Certificates” has the
meaning set forth in Section 4.02(a).

 

“Change in Recommendation”
has the meaning set forth in Section 7.04(f).

 

“Claims Notice” has
the meaning set forth in Section 7.07(d).

 

“Closing” and “Closing Date” have
the meanings set forth in Section 3.02(a).

 

“Closing Adjustments”
has the meaning set forth in Section 8.04.

 

“Closing Adjustment Amount”
has the meaning set forth in Section 8.04.

 

“Closing Adjustment Time”
has the meaning set forth in Section 8.04.

 

“COBRA” means the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Common Share Consideration”
means the Common Share Consideration Amount divided by the Calculation Price (i.e.,
the amount of Acquiror Common Shares issued at Closing).

 

“Common Share Consideration Amount”
means the Merger Consideration Amount minus the Preferred Share Consideration
Amount.

 

“Confidentiality Agreement”
has the meaning set forth in Section 7.03(b).

 

“Damages” has the
meaning set forth in Section 7.07(b)(i).

 

“Debt Balance”  means the balance
due under all indebtedness of Target, Target Subsidiaries and Retail Entities
at the Effective Time, including but not limited to accrued but unpaid
interest, and incurred but unpaid prepayment premiums.  The Debt

 

4

 

Balance
does not include the Exchange Properties Indebtedness, as this shall be an
obligation of NPI at the Effective Time.

 

“Deposit” has the
meaning set forth in Section 4.04.

 

“Dollenberg Retirement Obligations”
means any outstanding obligations to make payments to P. Douglas Dollenberg
pursuant to Sections 3(iii), 4 and 8(i) of the Retirement Agreement dated
January 1, 2005 by and among P. Douglas Dollenberg, Target and NPI, as
amended.

 

“Effective Date” means
the day of the Effective Time.

 

“Effective Time” has
the meaning set forth in Section 3.02(b).

 

“Environment” has the
meaning set forth in Section 6.04(f).

 

“Environmental Laws”
means any United Stated federal, state or local Laws in existence on the date
hereof relating to the presence or release of Hazardous Substances or
protection of the environment, including the Federal Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”).

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

“ERISA Affiliate”
means any Person who, together with Target or the Surviving Entity, as
appropriate in the context, is or has been treated as a single employer under Section 414
of the Code, and the regulations thereunder.

 

“Escrow Fund” has the
meaning set forth in Section 7.07(a).

 

“Escrow Period” has
the meaning set forth in Section 7.07(c).

 

“Escrow Shares” has
the meaning set forth in Section 4.05(a).

 

“Exchange” has the
meaning set forth in the preamble to this Agreement.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

 

“Exchange Agreement”
means the exchange agreement to be entered into by and between NPI and
Surviving Entity on the day after the Closing pursuant to which the ownership
interests in the Retail Entities will be exchanged for the ownership interests
in the NPI Exchange Entities.

 

“Exchange Properties Indebtedness”
has the meaning set forth in the Exchange Agreement.

 

5

 

“Existing Indebtedness”
means the Existing Office Indebtedness and the Existing Retail Indebtedness.

 

“Existing Office Indebtedness”
means the loans incurred by the entities set forth in Section 8.02
of the Target Disclosure Letter, secured by deeds of trust on the properties
owned by such entities, having an aggregate balance as of December 1, 2006
of approximately Fifty-Seven Million Five Hundred Sixty-Four Thousand One
Hundred Thirty-One Dollars ($57,564,131). 
Target shall use a portion of the proceeds of the Short Term Loan to
prepay the Existing Office Indebtedness prior to Closing.

 

“Existing Retail Indebtedness”
means the loans secured by deeds of trust on the properties owned by White
Marsh Plaza Business Trust and The Avenue at White Marsh Business Trust, having
an aggregate balance as of December 1, 2006 of approximately Twenty-Nine
Million One Hundred Forty-Six Thousand Three Hundred Ninety-Eight Dollars
($29,146,398).  Acquiror shall not be directly
or indirectly liable for the Existing Retail Indebtedness upon or after the
closing of the Exchange, except to the extent set forth in Section 6.02(k) of
the Target Disclosure Letter.

 

“Former Superior Proposal”
has the meaning set forth in Section 7.04(e).

 

“GAAP” means
accounting principles generally accepted in the United States of America.

 

“Governmental Authority”
means any federal, state or local court, administrative agency or commission or
other governmental authority or instrumentality or agency.

 

“Gross Value”  means the sum of
$303,422,124 (which is equal to $362,500,000 less the gross purchase price of
$59,077,876 payable for the ownership interests in the NPI Entities).

 

“Hazardous Materials”
means (i) those substances defined in or regulated under the following
federal statutes and their state counterparts, as each may be amended from time
to time, and all regulations thereunder: 
the Resource Conservation and Recovery Act, the Comprehensive Environmental
Response, Compensation and Liability Act, the Clean Water Act, the Safe
Drinking Water Act, the Atomic Energy Act and the Clean Air Act;
(ii) petroleum and petroleum products, including crude oil and any
fractions thereof; (iii) polychlorinated biphenyls, friable asbestos and radon;
and (iv) any chemicals, materials, substances or wastes which are defined
as or included in the definition of “hazardous substances,” “restricted
hazardous wastes,” “toxic substances,” “toxic pollutants” or words of similar
import, under any applicable Environmental Law; and (v) any substance,
material, or waste regulated by any Governmental Authority pursuant to any
Environmental Law.

 

“Indemnified Person”
or “Indemnified Persons”
have the meaning set forth in Section 7.07(b)(i).

 

“Indemnity Threshold”
has the meaning set forth in Section 7.07(b)(iii).

 

6

 

“Inspection Period”  has the meaning set forth in Section 8.01(b).

 

“Intellectual Property”
means all intellectual property owned or used by Target and the Target
Subsidiaries, including patents (including any continuations, divisionals,
continuations-in-part, renewals and reissues), trademarks, trade names, service
marks, logos, domain names and other indicators of source or origin, database
rights, copyrights, mask works, technology, know-how, trade secrets, inventory,
ideas, algorithms, processes, computer software programs or applications (in
both source code and object code form), tangible or intangible proprietary
information or material and all other intellectual property or proprietary
rights, together with all goodwill symbolized by any of the foregoing,
registrations and applications for the foregoing, and rights to sue for past
infringement thereof.

 

“IRS” means the
Internal Revenue Service.

 

“knowledge of Acquiror”
or “to Acquiror’s
knowledge” means the actual knowledge of Randall M. Griffin or
Roger A. Waesche, Jr.

 

“knowledge of Target”
or “to Target’s
knowledge” means the actual knowledge of J. Joseph Credit,
Steven Endres or Peter Teeling.

 

“Law” has the meaning
set forth in Section 6.02(d)(i).

 

“Leasing Commissions”
means any commissions due and payable on the Target Properties Leases to third
parties and not to Affiliates of Target.

 

“Lender’s Approval”
has the meaning set forth in Section 7.11(b).

 

“License Agreement”
has the meaning set forth in Section 8.06.

 

“Liens” means any
charge, mortgage, pledge, security interest, restriction, Claim, lien or
encumbrance.

 

“Liquidating Trust”
means NVI Liquidating Trust, a Maryland business trust.

 

“Liquidation Preference”
means $50.00 per Acquiror Convertible Preferred Share.

 

“Loan Escrows” has the
meaning set forth in Section 4.01(a).

 

“Loan Documents” has
the meaning set forth in Section 7.11(a).

 

“Loans” means any
loan, loan agreement, note, borrowing arrangement or extension of credit,
including, without limitation, letters of credit, leases, credit enhancements,
guarantees and similar interest-bearing assets, as well as commitments to
extend any of the same.

 

“Merger” has the
meaning set forth in Section 3.01(a).

 

7

 

“Merger Closing Properties”
means the Merger Properties and the Retail Properties.

 

“Merger Closing Properties Leases”
means the leases applicable to the Merger Closing Properties.

 

“Merger Consideration”
has the meaning set forth in Section 4.01(a).

 

“Merger Consideration Amount”
has the meaning set forth in Section 4.01(a).

 

“Merger Properties”
has the meaning set forth in the preamble to this Agreement.

 

“Merger Properties Leases”
means the leases in effect as of the date hereof with tenants of the Merger
Properties and all written amendments, modifications and supplements thereto.

 

“Merger Subsidiary”
has the meaning set forth in the preamble to this Agreement.

 

“Merger Subsidiary Common Shares”
means the common shares of beneficial interest, $0.01 par value per share, of
Merger Subsidiary.

 

“MGCL” means the
Maryland General Corporation Law.

 

“Non-Target Properties Letters of
Credit” has the meaning set forth in Section 6.02(g)(xix).

 

“NPI” has the meaning
set forth in the preamble to this Agreement.

 

“NPI Entities” means,
collectively, one hundred percent (100%) of the ownership interests in 37
Allegheny Business Trust, Philadelphia Road Operating Company, LLC, 9020
Mendenhall, LLC, Woods Investors, LLC, Rivers Center III Investors LLC and
White Marsh Hi-Tech 2 Business Trust, fifty percent (50%) of the ownership
interests in Campbell Corporate Center I Limited Partnership, forty-three and
seven-tenths percent (43.7%) in Nottingham Associates Limited Partnership and
sixty percent (60%) in Sandpiper Limited Partnership.

 

“NPI Exchange Entities”
has the meaning set forth in the preamble to this Agreement.

 

“NPI Exchange Properties”
has the meaning set forth in the preamble to this Agreement.

 

“NPI Exchange Properties Leases”
means all leases in effect as of the date hereof with tenants of the NPI
Exchange Properties and all written amendments, modifications and supplements
thereto.

 

“NYSE” means the New
York Stock Exchange, Inc.

 

8

 

“Office Assumed Loan Documents”
means the documents evidencing and relating to the Office Assumed Loans.

 

“Office Assumed Loans”
means the Assumed Loans, the loans to be assumed by Acquiror OP under the PSA
(Woods and Rivers Center III) and the loan made to Tyler Ridge I.

 

“Outside Date” has the
meaning set forth in Section 10.01(b)(ii).

 

“Payment Fund” has the
meaning set forth in Section 4.02(a).

 

“Permitted Liens”
means (i) Liens for Taxes not yet delinquent and Liens for Taxes being
contested in good faith; (ii) inchoate mechanics’ and materialmen’s Liens
for construction in progress; (iii) inchoate workmen’s, repairmen’s,
warehousemen’s and carriers’ Liens arising in the ordinary course of business
of Target or any of the Target Subsidiaries; (iv) zoning restrictions,
survey exceptions, utility easements, rights of way and similar Liens that are
imposed by any Governmental Authority having jurisdiction thereon; (v) with
respect to real property, any title exception disclosed in title insurance
policy with respect to any Target Property (whether material or immaterial),
Liens and obligations arising under the Material Contracts (including but not
limited to any Lien securing mortgage debt disclosed in the Target Disclosure Letter)
and any other Lien that does not interfere materially with the current use of
such property (assuming its continued use in the manner in which it is
currently used) or materially adversely affect the value or marketability of
such property; (vi) reciprocal easement agreements; (vii) matters
that would be disclosed on current title reports or surveys and/or (viii) Liens
or restrictions arising pursuant to the Target Properties Leases.

 

“Person” means any
individual, bank, corporation, partnership, association, joint-stock company,
business trust, limited liability company or unincorporated organization.

 

“Potential Acquiror”
has the meaning set forth in Section 7.04(d).

 

“Preferred Share Consideration”
means the number of Acquiror Convertible Preferred Shares designated by Target
to Acquiror at least five (5) Business Days prior to the Closing; provided, however, the number of Acquiror
Convertible Preferred Shares shall not exceed the sum of (i) 2,830,000
plus (ii) seventy percent (70%) of the Aggregate Closing Adjustments
divided by the Liquidation Preference.

 

“Preferred Share Consideration Amount”
means the Preferred Share Consideration multiplied by the Liquidation
Preference.

 

“Pre-LOI Leases” the
Target Properties Leases signed on or prior to September 6, 2006.

 

“Pre-LOI Leasing Commissions”
means any commissions due and payable on Pre-LOI Leases but excluding
commissions due with respect to future renewals or extensions of Pre-LOI
Leases.

 

9

 

“Pre-LOI TI Work” has
the meaning set forth in Section 7.14.

 

“Proxy Statement”
means the proxy statement to be provided to the Target Stockholders in
connection with the Target Stockholders Meeting.

 

“Purchase and Sale”
has the meaning set forth in Section 2.01.

 

“Purchase Price” has
the meaning set forth in Section 2.02.

 

“Purchase Properties”
has the meaning set forth in the preamble to this Agreement.

 

“Purchase Properties Leases”
means all leases in effect as of the date hereof with tenants of the Purchase
Properties and all written amendments, modifications and supplements thereto.

 

“Rating Agencies” has
the meaning set forth in Section 7.11(b).

 

“Reciprocal Release”
has the meaning set forth in Section 9.04(k).

 

“REIT” means a real
estate investment trust within the meaning of Section 856- 860 of the
Code.

 

“Registration Rights Agreement”
means the registration rights agreement between Acquiror and the Target
Stockholders relating to the filing of the Registration Statement, in
substantially the form attached hereto as Exhibit B.

 

“Registration Statement”
means the Acquiror Registration Statement on Form S-3 or other available
form registering the resale of the Common Share Consideration and the Acquiror
Common Shares issuable upon conversion of the Acquiror Convertible Preferred
Shares and any amendments or supplements thereto.

 

“Release” has the
meaning set forth in Section 6.04(f).

 

“Representative” has
the meaning set forth in Section 7.04(b).

 

“Retail Entities” has
the meaning set forth in the preamble to this Agreement.

 

“Retail Loan Guarantees”
has the meaning set forth in Section 7.07(b).

 

“Retail Properties”
has the meaning set forth in the preamble to this Agreement.

 

“Retail Transaction”
means the acquisition of NPI by, or the merger of NPI with, an entity that
engages or proposes to engage in retail property acquisitions or ownership.

 

“Rights” means, with
respect to any Person, warrants, options, rights, convertible securities and
other arrangements or commitments which obligate the Person to issue or dispose
of any of its stock or other ownership interests.

 

10

 

“Scheduled Contracts”
means those service and other contracts which have been entered into by Target
or Target Subsidiaries or that will be assigned to Target or Target
Subsidiaries prior to Closing, all as set forth in Section 6.02(k) of
the Target Disclosure Letter.

 

“SDAT” has the meaning
set forth in Section 3.02(b).

 

“SEC” means the
Securities and Exchange Commission.

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

 

“Share Escrow Agent”
means U.S. Bank National Association.

 

“Share Escrow Agreement”
means the escrow agreement among the Share Escrow Agent, Acquiror, Acquiror OP,
Merger Subsidiary and Stockholders’ Agent with respect to the Escrow Shares.

 

“Shares” means shares
of Target Common Stock.

 

“Short Term Loan”
means the loan to be made to Target by Wachovia Bank, N.A. with an outstanding
balance not to exceed $83,018,978 as of the Closing, which may be fully prepaid
at any time by Acquiror after Closing without any prepayment penalty
thereto.  The documents evidencing or
securing the Short Term Loan are referred to herein as the “Short Term Loan Documents.”  Of the total proceeds of the Short Term Loan,
up to $57,564,131 shall be applied by Target to prepay Existing Office
Indebtedness prior to Closing.

 

“Stockholder Approval”
has the meaning set forth in Section 6.02(c)(ii).

 

“Stockholders’ Agent”
shall mean the Liquidating Trust.

 

“Subsidiary” and “Significant Subsidiary”
have the meanings ascribed to those terms in Rule l-02 of Regulation S-X
promulgated by the SEC.

 

“Superior Proposal”
means a bona fide written proposal (and its most recently amended or modified
terms, if amended or modified) made by a Person other than Target or its
Affiliates: (A) to consummate an Acquisition Proposal; (B) on terms
which the Target Board in good faith concludes (following advice of its
financial advisors that such proposal is more favorable to the Target
Stockholders, from a financial point of view, and advice of outside counsel),
taking into account, among other things, all legal, financial, regulatory,
timing and other aspects of the proposal and the identity and nature of the Person
making the proposal, would, if consummated, result in a transaction that
is more favorable to Target or to the Target Stockholders (in their capacities
as stockholders), as the case may be, from a financial point of view, than the
transactions contemplated by this Agreement (as the same may be proposed to be
amended by Acquiror pursuant to

 

11

 

Section 7.04(e)); and (C) that
does not contain any contingency to obtain financing or other funding.

 

“Superior Proposal Notice”
has the meaning set forth in Section 7.04(d).

 

“Surviving Entity” has
the meaning set forth in Section 3.01(a).

 

“Target” has the
meaning set forth in the preamble to this Agreement.

 

“Target Board” means
the Board of Directors of Target.

 

“Target Bylaws” means
the Amended and Restated Bylaws of Target as in effect on the date hereof.

 

“Target Charter” means
the Articles of Incorporation of Target as in effect on the date hereof.

 

“Target Class A Common Stock”
means the Class A Common Stock, $10.00 par value per share, of Target.

 

“Target Class B Common Stock”
means the Class B Common Stock, $1.00 par value per share, of Target.

 

“Target Common Stock”
means the Target Class A Common Stock together with the Target Class B
Common Stock.

 

“Target Disclosure Letter”
has the meaning set forth in Section 6.01.

 

“Target Group” means,
collectively, Target, Target Subsidiaries, NPI and the NPI Entities.

 

“Target Joint Ventures”
meanings the Target Properties in which Target or a Target Subsidiary owns less
than a 100% equity interest.

 

“Target Material Adverse Effect”
means any event, circumstance, change or effect that adversely affects the
financial condition or results of operations of Target and the Target
Subsidiaries in an amount in excess of $18,000,000, taken as a whole, that was
not reasonably foreseeable at the date hereof; provided,
however, that none of the
following shall be deemed to constitute or shall be taken into account in
determining whether there has been an “Target Material Adverse Effect”:  (i) any event, circumstance, change or
effect arising out of or attributable to (A) any changes in the United
States or global economy or capital, financial or securities markets generally,
including changes in interest or exchange rates, (B) the commencement or
escalation of a war or armed hostilities or the occurrence of acts of terrorism
or sabotage, (C) any changes in general economic, legal, regulatory or
political conditions in the geographic regions in which Target and the Target
Subsidiaries operate, (D) earthquakes, hurricanes or other natural

 

12

 

disasters
and (E) changes in Law or GAAP or (ii) any existing event,
circumstance, change or effect with respect to which Acquiror has knowledge as
of the date hereof.

 

“Target Material Contracts”
means the Target Properties Leases, the Office Assumed Loan Documents, the
Short Term Loan Documents, the Scheduled Contracts and the documents evidencing
or securing the Existing Indebtedness (it being recognized that the documents
evidencing or securing the Existing Office Indebtedness shall be terminated in
conjunction with the repayment thereof with the proceeds of the Short Term
Loan).

 

“Target Property” or “Target Properties”
means, collectively, the Merger Properties, NPI Exchange Properties and
Purchase Properties.

 

“Target Properties Escrow LCs”
has the meaning set forth in Section 6.02(g)(xix).

 

“Target Properties Leases”
means the Purchase Properties Leases collectively with the Merger Properties
Leases and the NPI Exchange Properties Leases.

 

“Target Properties LCs”
has the meaning set forth in Section 6.02(g)(xix).

 

“Target Stockholders”
means the holders of the Target Common Stock.

 

“Target Stockholders Meeting”
means a special meeting of the Target Stockholders to consider and vote upon
the approval of the Merger, this Agreement and any other matter required to be
approved by Target’s stockholders for consummation of the Transaction
(including any adjournment or postponement).

 

“Target Subsidiary” or
“Target Subsidiaries”
has the meaning set forth in Section 6.02(a)(ii).

 

“Tax” or “Taxes” shall mean any
federal, state, local or foreign income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental, customs duties, stock, franchise, profits, withholding, social
security, unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not.

 

“Tax Returns” means
any return, declaration, report, claim for refund, transfer pricing report or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

 

“Termination Date” has
the meaning set forth in Section 10.01.

 

“Termination Fee” has
the meaning set forth in Section 10.03(b).

 

13

 

“Transaction” shall
mean the Merger and the Purchase and Sale, collectively, along with any other
transaction contemplated by this Agreement.

 

“Transfer Taxes” shall
mean any real property transfer, sales, use, recordation, recording costs, registration
and other fees and any similar Taxes together with any related interest,
penalties or additions to Tax.

 

ARTICLE II.

PURCHASE AND SALE OF OWNERSHIP INTERESTS IN NPI ENTITIES

 

2.01.       Purchase and Sale of the Ownership
Interests.

 

On
the Closing Date, Acquiror OP shall purchase from NPI the percentage of
ownership interests in the NPI Entities as more particularly set forth on Schedule
1 hereto pursuant to the terms and conditions set forth herein (the “Purchase and Sale”)  and pursuant to a purchase and sale
agreement by and between NPI and Acquiror OP (the “PSA”).

 

2.02.       Purchase Price.

 

The
purchase price for the ownership interests in the NPI Entities which Acquiror
OP agrees to deliver to NPI, subject to the terms and conditions set forth
herein and in the PSA, shall be cash in an amount equal to (a) $59,077,876
(subject to adjustment) reduced by (b) the reductions and adjustments set
forth in the PSA (the difference between (a) and (b) being herein
referred to as the “Purchase
Price”).

 

ARTICLE III.

THE MERGER

 

3.01.       The Merger.

 

(a)           The Merger. 
Upon the terms and subject to the conditions set forth in this
Agreement, at the Effective Time, Target will merge into Merger Subsidiary (the
“Merger”),
the separate corporate existence of Target shall cease and Merger Subsidiary
shall survive and continue to exist as a Maryland business trust and as a
wholly owned subsidiary of Acquiror (Merger Subsidiary, as the surviving entity
in the Merger, is sometimes referred to herein as the “Surviving Entity”)
with all its rights, privileges, immunities, powers and franchises continuing
unaffected by the Merger.

 

(b)           Name.  The
name of the Surviving Entity shall be “W&M Business Trust”.

 

(c)           Certificate of Trust and Declaration of Trust.  The certificate of trust and declaration of
trust of the Merger Subsidiary in effect immediately prior to the Effective
Time shall be the certificate of trust and declaration of trust of the
Surviving Entity, unless and until duly amended in accordance with applicable
Law.

 

14

 

(d)           Trustees and Officers of the Surviving Entity.  The parties hereto shall take all actions
necessary so that the trustees of the Surviving Entity immediately after the
Merger shall be the trustees of the Merger Subsidiary immediately prior to the
Merger.  The parties hereto shall take
all actions necessary so that the officers of the Surviving Entity immediately
after the Merger shall be the officers of the Merger Subsidiary immediately
prior to the Merger.

 

(e)           Effect of the Merger.  At the Effective Time, the effect of the
Merger shall be as provided in the MGCL. 
Without limiting the generality of the foregoing, and subject thereto,
at the Effective Time, all the property, rights, privileges, powers and franchises
of Target shall vest in the Surviving Entity, and the Assumed Loans directly or
indirectly shall become the debts of the Surviving Entity.

 

(f)            Additional Actions.  If, at any time after the Effective Time, the
Surviving Entity shall consider that any further assignments or assurances in
law or any other acts are necessary or desirable to (i) vest, perfect or
confirm, of record or otherwise, in the Surviving Entity its right, title or
interest in, to or under any of the rights, properties or assets of Target
acquired or to be acquired by the Surviving Entity as a result of, or in
connection with, the Merger, or (ii) otherwise carry out the purposes of
this Agreement, Target, and its proper officers and directors, shall be deemed
to have granted to the Surviving Entity an irrevocable power of attorney to
execute and deliver all such proper deeds, assignments and assurances in law
and to do all acts necessary or proper to vest, perfect or confirm title to and
possession of such rights, properties or assets in the Surviving Entity and
otherwise to carry out the purposes of this Agreement, and the proper officers
and trustees of the Surviving Entity are fully authorized in the name of the
Surviving Entity or otherwise to take any and all such action.

 

3.02.       Effective Date and Effective Time;
Closing.

 

(a)           The
closing of the Transaction (the “Closing”) shall take place immediately prior
to the Effective Time at 10:00 a.m., Eastern Time, at the offices of DLA
Piper US LLP at 6225 Smith Avenue, Baltimore, Maryland 21209, or at such other
place, at such other time, or on such other date as the parties may mutually
agree upon (such date, the “Closing Date”). 
At the Closing, there shall be delivered to Acquiror and Target the
certificates and other documents required to be delivered under Article IX
hereof.  It is the parties’ goal that the
Closing Date shall occur no later than December 31, 2006.

 

(b)           As
soon as practicable upon satisfaction or waiver of the conditions set forth in Article IX
(other than those conditions that by their nature are to be satisfied at the
consummation of the Merger, but subject to the fulfillment or waiver of those
conditions), at the closing, the parties shall cause Articles of Merger in the
form of Exhibit C hereto (the “Articles of Merger”) to be filed with the
State Department of Assessments and Taxation of Maryland (the “SDAT”) pursuant to
the MGCL.  The Merger provided for herein
shall become effective at such time as the Articles of Merger have been
accepted for record by the SDAT, or such later time (not to exceed 30 days

 

15

 

from
the date of filing) designated by the parties in the Articles of Merger in
accordance with the MGCL; provided,
however, that such time shall not
be on a date later than the Outside Date (the “Effective Time”).

 

ARTICLE IV.

MERGER CONSIDERATION; EXCHANGE PROCEDURES

 

4.01.       Conversion of Shares.

 

At
the Effective Time, by virtue of the Merger and without any action on the part
of a holder of shares of Target Common Stock:

 

(a)           The aggregate merger consideration payable to holders of
Target Common Stock issued and outstanding immediately prior to the Effective
Time (expressed as a number of shares) is referred to as the “Merger Consideration”.  The Merger Consideration shall be comprised
of the Preferred Share Consideration and the Common Share Consideration.  For example, assume that the Debt Balance
were $129,648,266 (comprised of the Existing Retail Indebtedness of $29,146,398,
the Short Term Loan of $83,018,978 and the Assumed Loans of $17,482,890), the
Closing Adjustment Amount due by Target to Acquiror were $2,000,000 and the
Loan Escrows were $1,000,000.  The Merger
Consideration Amount would be as follows:

 

	
   

  	
   

  	
  $

  	
  303,422,124

  	
   

  
	
  Debt Balance

  	
   

  	
  $

  	
  –129,648,266

  	
   

  
	
  Closing Adjustment
  Amount

  	
   

  	
  $

  	
  –2,000,000

  	
   

  
	
  Loan Escrows

  	
   

  	
  $

  	
  +1,000,000

  	
   

  
	
  Merger Consideration
  Amount

  	
   

  	
  $

  	
  172,773,858

  	
   

  

 

Further,
assume that the Preferred Share Consideration were designated by Target to be
2,830,000 Acquiror Convertible Preferred Shares.  The Preferred Share Consideration Amount
would therefore be 2,830,000 x $50 = $141,500,000.  The Common Share Consideration Amount would
therefore be:

 

	
  Merger Consideration
  Amount

  	
   

  	
  $

  	
  172,773,858

  	
   

  
	
  Preferred Share
  Consideration Amount

  	
   

  	
  $

  	
  –141,500,000

  	
   

  
	
  Common Share
  Consideration Amount

  	
   

  	
  $

  	
  31,273,858

  	
   

  

 

If
the Calculation Price were $45 per share, the Common Share Consideration would
be $31,273,858 ÷ $45 = 694,974.62 Acquiror Common Shares.

 

“Merger Consideration Amount”
means (i) the excess of the Gross Value over the Debt Balance, (ii) increased
by any Closing Adjustment Amount owed by Acquiror to Target pursuant to Section 8.04,
if applicable, or decreased by any Closing Adjustment Amount owed by Target to
Acquiror pursuant to Section 8.04, if applicable, as the case may
be, plus (iii) the amount of any loan escrows held by Target’s lenders in
connection with the Assumed Loans at the Effective Time, to the extent not
taken into account in

 

16

 

computing
the Debt Balance (the “Loan
Escrows”).  The sum of (ii) and
(iii) is referred to as the “Aggregate Closing Adjustments”.

 

(b)           At
the Effective Time, except as set forth in subsections (c) and (d) below,
each share of Target Common Stock issued and outstanding immediately prior to
the Effective Time shall be converted into, and shall be canceled in exchange
for, the right to receive a pro rata share of the Merger Consideration.

 

(c)           Each
share of Merger Subsidiary Common Shares issued and outstanding immediately prior
to the Effective Time that is owned by Acquiror or by any Subsidiary of
Acquiror, shall be converted into and become one share of common stock of the
Surviving Entity.

 

(d)           Each
share of Target Common Stock that is owned by Target or any of the Target Subsidiaries,
or by Acquiror, Merger Subsidiary or any other direct or indirect Subsidiary of
Acquiror or Merger Subsidiary, shall be cancelled and retired and shall cease
to exist and no cash, stock or any other consideration shall be delivered by
Acquiror or Merger Subsidiary in exchange therefor.

 

4.02.       Exchange Procedures.

 

(a)           Custody of Certificates and
Payment Fund.  At or prior to the
Effective Time, (i) Target shall acquire and hold for the Target
Stockholders pursuant to a Power of Attorney between the Liquidating Trust and
the Target Stockholders the certificate or certificates or affidavits of loss
in accordance with Section 4.02(e) hereof (collectively, the “Certificates”), which
immediately prior to the Effective Time represented shares of Target Common
Stock and (ii) Acquiror shall deposit or cause to be deposited with the
Liquidating Trust, for the benefit of the Target Stockholders for exchange in
accordance with this Article IV, full certificates representing
Acquiror Common Shares and Acquiror Convertible Preferred Shares in an amount
sufficient to satisfy the aggregate Merger Consideration (such aggregate
certificates being deposited hereinafter referred to as the “Payment Fund”).  The Liquidating Trust shall, pursuant to
irrevocable instructions, make payments out of the Payment Fund as provided for
in this Article IV, and the Payment Fund shall not be used for any
other purpose.

 

(b)           Exchange Procedures for Target
Common Stock.  After surrender to the
Liquidating Trust of a Certificate for cancellation, together with such Power
of Attorney duly executed, and such other customary documents as may reasonably
be required by the Liquidating Trust, upon the Effective Time, the holder of
such Certificate shall be entitled to receive the Merger Consideration in
exchange therefor for each share of Target Common Stock formerly represented by
such Certificate.  Such payment of the
Merger Consideration shall be sent to such holder by the Liquidating Trust
promptly after receipt by the Liquidating Trust of the Payment Fund, and the
Power of Attorney duly executed, and such other customary documents as may
reasonably be required by the Liquidating Trust, and the shares of Target
Common Stock formerly represented by such

 

17

 

Certificate
so surrendered shall forthwith be canceled. 
No interest will be paid or will accrue on any cash payable upon the
surrender of a Certificate.

 

(c)           No Further Ownership Rights in
Stock.  Until surrendered as
contemplated by this Article IV, each Certificate shall be deemed
at any time after the Effective Time to represent only the right to receive
upon such surrender the Merger Consideration in respect of the shares of Target
Common Stock formerly represented by such Certificate as contemplated by this Section 4.02.  All shares paid upon the surrender for
exchange of Certificates in accordance with the terms of this Article IV
shall be deemed to have been paid in full satisfaction of all rights pertaining
to the shares of Target Common Stock represented by such Certificates.  After the Effective Time, there shall be no
further registration of transfers of shares of Target Common Stock outstanding
immediately prior to the Effective Time on the records of Target, and if
Certificates are presented to the Surviving Entity, they shall be canceled and
exchanged as provided for, and in accordance with the procedures set forth, in
this Article IV.

 

(d)           Unregistered Transfer of Stock.  If payment of the Merger Consideration is to
be made to a Person other than the Person in whose name the surrendered
Certificate is registered, it shall be a condition of such payment that the
Certificate so surrendered shall be properly endorsed or shall be otherwise in
proper form for transfer and that the Person requesting such payment shall have
paid any transfer and any other Taxes required by reason of the payment to a
Person other than the registered holder of the Certificate surrendered or shall
have established to the satisfaction of the Surviving Entity that such Tax either
has been paid or is not applicable.

 

(e)           Lost Certificates.  In the event that any Certificate shall have
been lost, stolen or destroyed, upon the making of an affidavit of that fact by
the Person claiming such Certificate to be lost, stolen or destroyed and, if
required by the Surviving Entity, an indemnity against any claim that may be
made against it with respect to such Certificate, the Liquidating Trust will
issue, in exchange for such lost, stolen or destroyed Certificate, the Merger
Consideration payable pursuant to this Article IV.

 

(f)            Termination of Payment Fund.  Any portion of the Payment Fund remaining
unclaimed by holders of Shares immediately prior to such time as such amounts
would otherwise escheat to or become property of any Governmental Authority
shall, to the extent permitted by applicable Law, become the property of the
Liquidating Trust free and clear of all claims or interest of any Persons
previously entitled thereto.

 

(g)           No Liability.  None of Acquiror, Merger Subsidiary, Target
or the Liquidating Trust, or any employee, officer, director, agent or
Affiliate thereof, shall be liable to any Person in respect of any cash from
the Payment Fund delivered to a public official pursuant to any applicable
abandoned property, escheat or similar Law.

 

4.03.       Adjustments.

 

Notwithstanding
anything in this Agreement to the contrary, if, between the date of this
Agreement and the Effective Time, the outstanding shares of Target Common

 

18

 

Stock
shall be changed into a different number, class or series of shares by reason
of any stock dividend, subdivision, reclassification, recapitalization, stock
split, combination or exchange of shares, then the Merger Consideration payable
with respect thereto and any other amounts payable pursuant to this Agreement
shall be appropriately adjusted in order to provide holders of Target Common
Stock the same economic effect as contemplated by this Agreement.

 

4.04.       Deposit.

 

Within
one (1) Business Day after the execution of this Agreement, Acquiror shall
deposit with the Cash Escrow Agent in cash Two Million Dollars ($2,000,000)
which sum, together with any interest earned thereon prior to the Closing Date,
is referred to as the “Deposit”,
pursuant to the Cash Escrow Agreement for the benefit of the Target
Stockholders.  The Deposit shall be held
in an interest bearing escrow account, pending disposition of the Deposit in
accordance with Section 8.01(b). 
At Closing of the Merger, the Cash Escrow Agent shall remit the Deposit
to Acquiror.

 

4.05.       Deposit of Escrow Shares and
Additional Escrow Shares.

 

(a)           As soon as practicable after the
Effective Time, and subject to, and in accordance with, the provisions of Section 7.07,
Acquiror shall cause to be deposited with the Share Escrow Agent a certificate
or certificates representing a number of Acquiror Common Shares (the “Escrow Shares”) equal
to Three Million Five Hundred Thousand Dollars ($3,500,000) of the Merger
Consideration Amount, which shall be registered in the name of the Share Escrow
Agent as nominee for the holders of Certificates cancelled pursuant to Section 4.02(b).  The Escrow Shares shall be beneficially owned
by such holders so that such holders shall be entitled to any dividends or
distributions (other than securities) and have the right to vote the shares and
shall be available to compensate Acquiror for certain damages as provided in Section 7.07.  The Escrow Shares shall be released in
accordance with and subject to the provisions of Section 7.07 and
the Share Escrow Agreement.  At the
Effective Time, the Escrow Shares will not have been registered under the
Securities Act.  In accordance with the
Registration Rights Agreement, Acquiror will register the Escrow Shares with
the SEC after Closing pursuant to the Registration Statement.

 

(b)           As soon as practicable after the
Effective Time, and subject to, and in accordance with, the Additional Share
Escrow Agreement, Acquiror shall cause to be deposited with the Share Escrow
Agent a certificate or certificates representing a number of shares of Acquiror
Common Shares (the “Additional
Escrow Shares”) equal to Four Million Five Hundred Thousand
($4,500,000) of the Merger Consideration Amount, which shall be registered in
the name of the Share Escrow Agent as nominee for the holders of Certificates
cancelled pursuant to Section 4.02(b).  The Additional Escrow Shares shall be
beneficially owned by such holders so that such holders shall be entitled to
any dividends or distributions (other than securities) and have the right to
vote the shares and shall be available to Acquiror as provided in the
Additional Share Escrow Agreement.  The
Additional Escrow Shares shall be released in accordance with and

 

19

 

subject
to the provisions of the Additional Share Escrow Agreement.  At the Effective Time, the Additional Escrow
Shares will not have been registered under the Securities Act.  In accordance with the Registration Rights
Agreement, Acquiror will register the Additional Escrow Shares with the SEC
after Closing pursuant to the Registration Statement.

 

ARTICLE V.

CONDUCT OF THE PARTIES PENDING CLOSING

 

5.01.       Conduct of Business by Target.

 

From
the date hereof until the earlier of the Effective Time and the termination of
this Agreement pursuant to and in accordance with Article X, except
as expressly contemplated or permitted by this Agreement or as disclosed in the
Target Disclosure Letter as noted specifically herein, without the prior
written consent of Acquiror, not to be unreasonably withheld, Target will not,
and will cause each of the Target Subsidiaries not to:

 

(a)           Ordinary Course. 
Conduct its business other than in the ordinary and usual course
consistent with past practice or fail to use commercially reasonable efforts to
preserve its business organization and in no event enter into any commitment
that would impose any obligation on Acquiror, Target, Target Subsidiaries or
the Surviving Entity after the Closing, other than tenant improvements with respect
to Target Properties Leases signed after September 6, 2006 and other than
as set forth in the Target Disclosure Letter.

 

(b)           Acquisitions.  Except as set forth in Section 5.01(b) of
the Target Disclosure Letter, acquire all or any portion of the assets,
business or properties of any other entity.

 

(c)           Governing
Documents.  Amend the Target Charter
or the Target Bylaws or the articles of incorporation or bylaws (or equivalent
documents) of Target or any Target Subsidiary.

 

(d)           Contracts.  Except in the ordinary course of business
consistent with past practice or as otherwise permitted under this Section 5.01
and except as disclosed in the Target Disclosure Letter, enter into or
terminate any Target Material Contract or amend or modify in any material respect
any of its existing Target Material Contracts.

 

(e)           Insurance.  Allow any insurance policy in effect as of
the date hereof to be modified, lapse or expire prior to Closing or fail to
file any claim, notice or report that Target would normally file in the
ordinary course of business or as reasonably requested by Acquiror.

 

20

 

(f)            Future
Obligations.  Grant any severance or
termination pay to any director, officer or consultant, pay any special bonus
or any remuneration to any director, officer or consultant, the terms of which
would require any payments to be made post-Closing.

 

(g)           Employees.  Hire any employees.

 

(h)           Litigation.  Commence a lawsuit other than for the routine
collection of bills, to protect a material right, or for a breach of this
Agreement.

 

(i)            Dispositions.  Sell, license or otherwise dispose of any
Target Properties.

 

(j)            Liens.  Encumber or permit any liens on any Target
Properties.

 

(k)           Notices.  Deliver a default notice to any tenant
without simultaneously delivering a copy of such notice to Acquiror.

 

(l)            Indebtedness.  Incur any indebtedness for borrowed money or
guarantee any such indebtedness or issue or sell any debt securities or
guarantee any debt securities of others, other than draw-downs under credit
arrangements or loan facilities existing on the date of this Agreement, and
other than the Short Term Loans.

 

(m)          Taxes.  Except as provided in Section 6.02(i)(xix),
make any Tax election, change any Tax election, adopt any Tax accounting
method, change any Tax accounting method, file any Tax return (other than any
estimated Tax returns, payroll Tax returns or sales Tax returns) or any
amendment to a Tax return, enter into any closing agreement, settle any Tax
claim or assessment, or consent to any Tax claim or assessment.

 

(n)           Target
Properties Leases.  (i) Enter
into any new leases in excess of 5,000 square feet with respect to a Target
Property, (ii) modify or change in any material respect any existing
Target Property Lease in excess of 5,000 square feet or (iii) terminate
any Target Property Lease in excess of 5,000 square feet.  For purposes of this Section 5.01(n),
consent of Acquiror may be assumed in the event Target has not received a
response from Acquiror within two (2) Business Days of Target’s request
for consent.

 

(o)           Other
Actions.  Authorize or enter into any
agreement or otherwise agree or commit to do any of the foregoing.

 

5.02.       Conduct of Acquiror.

 

From
the date hereof until the Effective Time, except as expressly contemplated or
permitted by this Agreement, without the prior written consent of Target, not
to be unreasonably withheld, Acquiror will not, and will cause each of the
Acquiror Subsidiaries not to:

 

21

 

(a)           Interference or Delay.  Take, or cause to be taken, any action that
would interfere with the consummation of the Transaction and other transactions
contemplated by this Agreement, or delay the consummation of such transactions.

 

(b)           Adverse
Actions.  Take any action that is
intended or is reasonably likely to result in (x) any of its
representations and warranties set forth in this Agreement being or becoming
untrue in any material respect at any time at or prior to the Effective Time or
(y) any of the conditions to the Transaction set forth in Article IX
not being satisfied.

 

(c)           Other
Actions.  Authorize or enter into any
agreement or otherwise agree or commit to do any of the foregoing.

 

ARTICLE VI.

REPRESENTATIONS AND WARRANTIES

 

6.01.       Target Disclosure Letter.

 

Concurrently
with the execution and delivery of this Agreement, Target is delivering to
Acquiror a disclosure letter with numbered sections corresponding to the
relevant sections in this Agreement (the “Target Disclosure Letter”).  Any exception, qualification, limitation,
document or other item described in any provision, subprovision, section or
subsection of any Section of the Target Disclosure Letter with respect to
a particular representation or warranty contained in Section 6.02
herein shall be deemed to be an exception or qualification with respect to all
other representations or warranties contained in Section 6.02
herein to which the relevance of such item is reasonably apparent.  Nothing in the Target Disclosure Letter is
intended to broaden the scope of any representation or warranty contained in Section 6.02
herein.

 

6.02.       Representations and Warranties of
Target.

 

Subject
to the exceptions and qualifications set forth in the Target Disclosure Letter,
Target hereby represents and warrants to Acquiror, Acquiror OP and Merger
Subsidiary that:

 

(a)           Existence; Good Standing; Authority; Compliance with
Law.

 

(i)            Target is a corporation duly incorporated, validly
existing under the laws of the State of Maryland and in good standing with the
SDAT.  Target is duly qualified or
licensed to do business as a foreign entity and is in good standing under the
laws of any other jurisdiction in which the character of the properties owned,
leased or operated by it therein or in which the transaction of its business
makes such qualification or licensing necessary.  Target has all requisite corporate power and
authority to own, operate, lease and encumber the Target Properties and carry
on its business as now conducted.

 

22

 

(ii)           Section 6.02(a)(ii) of
the Target Disclosure Letter sets forth as of the Closing Date: (i) each
Subsidiary of Target (each, a “Target Subsidiary,”
and collectively, the “Target
Subsidiaries”); (ii) the legal form of each Target Subsidiary,
including the state of formation; and (iii) the identity and ownership
interest of each of the Target Subsidiaries that is held by Target or a Target
Subsidiary.

 

(iii)          Each
of the Target Subsidiaries is duly organized, validly existing and is in good
standing under the laws of the State of Maryland.  Each of the Target Subsidiaries is duly
qualified or licensed to do business and in good standing under the laws of
each jurisdiction in which the character of the properties owned, leased or
operated by it therein or in which the transaction of its business makes such
qualification or licensing necessary.

 

(iv)          Except
as set forth in Section 6.02(a)(iv) of the Target Disclosure
Letter, as of the Closing Date all of the outstanding voting securities or other
interests of each of the Target Subsidiaries have been validly issued and are (i) fully
paid and nonassessable and (ii) owned, directly or indirectly, free and
clear of any Lien (including any restriction on the right to vote or sell the
same, except as may be provided as a matter of Law), and all voting interests
in each of the Subsidiaries that is a partnership, joint venture, limited
liability company or trust which are owned by Target, by one of the Target
Subsidiaries or by Target and one of the Target Subsidiaries, are owned free
and clear of any Lien (including any restriction on the right to vote or sell
the same, except as may be provided as a matter of Law).

 

(v)           Target
has previously made available to Acquiror true and complete copies of the (i) Target
Charter and the Target Bylaws, each as amended through the date hereof, (ii) minute
books of meetings of the Target’s Board and (iii) organizational documents
of the Target Subsidiaries, each as amended through the date hereof.

 

(vi)          Section 6.02(a)(vi) of
the Target Disclosure Letter sets forth as of the date hereof each Subsidiary
of Target; the legal form of such Subsidiary, including the state of formation,
and the identity and ownership interest of each of the Subsidiaries held
directly or indirectly by Target.

 

(b)           Capitalization.

 

(i)            The
authorized shares of capital stock of Target consist of 100,000 shares of
Target Class A Common Stock, of which, as of September 30, 2006,
15,000 were issued and outstanding, 300,000 shares of Target Class B
Common Stock, of which, as of September 30, 2006, 75,000 were issued and
outstanding and 600 shares of Target Class C Common Stock, of which, as of
September 30, 2006, none are issued and outstanding.  As of the date of this Agreement, there were
no shares of Target Common Stock reserved for issuance  or required to be reserved for
issuance.  Section 6.02(b)(i) of
the Target Disclosure Letter sets forth a list of the Target Stockholders and
the shares of

 

23

 

Target
Common Stock owned by each.  There are no
other classes of stock of Target other than Target Common Stock.

 

(ii)           Section 6.02(b)(ii) of
the Target Disclosure Letter sets forth a list of all secured and unsecured
debt instruments outstanding as of the date hereof of Target and/or relating to
the Target Properties and their outstanding principal amounts as of December 1,
2006.  Target has no outstanding bonds,
debentures, notes or other similar obligations the holders of which have the
right to vote (or which are convertible into or exercisable for securities
having the right to vote) with the Target Stockholders on any matter.

 

(iii)          As
of the Effective Time, there will not be outstanding any share appreciation
rights, dividend equivalent rights, performance awards, restricted stock unit
awards or “phantom” shares applicable to Target or Target Subsidiaries.

 

(iv)          Except
as set forth in Section 6.02(b)(iv) of the Target Disclosure
Letter, there are no agreements or understandings to which Target is a party
with respect to shares of Target Common Stock, nor does Target have knowledge,
as of the date of this Agreement, of any third party agreements or
understandings with respect to the voting of any such shares.

 

(v)           Immediately
prior to the Closing, each Target Subsidiary shall be wholly-owned by Target
except as otherwise shown on Schedule 2. 
Neither Target nor any Target Subsidiary has any agreement or commitment
to sell or transfer any of its stock, partnership or ownership interests, as
the case may be.

 

(c)           Authority Relative to this Agreement.

 

(i)            Target has all necessary corporate power and authority to
execute and deliver this Agreement and to consummate the Transaction.  No other corporate proceedings on the part of
Target is necessary to authorize this Agreement or to consummate the
Transaction (other than, with respect to the Merger and this Agreement, to the
extent required by Law, the Stockholder Approval).  This Agreement has been duly and validly
executed and delivered by Target and, assuming due authorization, execution and
delivery hereof by each of Acquiror, Acquiror OP and Merger Subsidiary,
constitutes a valid, legal and binding agreement of Target, enforceable against
Target in accordance with and subject to its terms and conditions, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer and similar Laws of general
applicability relating to or affecting creditors’ rights or by general
equitable principles.

 

(ii)           The Target Board has duly and validly
authorized the execution and delivery of this Agreement, declared the
Transaction advisable and approved, subject to the approval of the Target
Stockholders, the Transaction, and no other actions are required to be taken by
the Target Board for the consummation of the Transaction.  The Target Board has directed that this
Agreement be submitted to the Target Stockholders for their approval to the
extent required by Law and the Target

 

24

 

Charter and Target Bylaws.  The Merger requires the affirmative vote of a
two-thirds majority of all votes entitled to be cast by the holders of all
outstanding Target Common Stock as of the record date for the Target
Stockholder Meeting (the “Stockholder Approval”).  The Stockholder Approval is
the only vote of the holders of any class or series of stock of Target
necessary to approve the Transaction.

 

(d)           No Conflict; Required Filings and Consents.

 

(i)            Except
as set forth in Section 6.02(d)(i) of the Target Disclosure
Letter, the execution and delivery by Target of this Agreement does not, and
the performance of its obligations hereunder will not, (A) conflict with
or violate the organizational documents of Target or Target Subsidiaries, (B) assuming
that all consents, approvals, authorizations and other actions described in
subsection (ii) have been obtained and all filings and obligations
described in subsection (ii) have been made, conflict with or violate
any domestic statute, law, ordinance, regulation, rule, code, executive order,
injunction, judgment, decree or other order (“Law”) applicable to Target and Target
Subsidiaries or by which any Target Property or other property or asset of
Target or any of the Target Subsidiaries is bound or affected, or
(C) result in any breach of or constitute a default (or an event which,
with notice or lapse of time or both, would become a default) under, or give to
others any right of termination, amendment, acceleration or cancellation of, or
result in the creation of a Lien or other encumbrance on any Target Property or
other property or asset of Target or any of the Target Subsidiaries pursuant
to, any note, bond, mortgage, indenture, contract, agreement, lease, license,
permit, franchise or other instrument or obligation, except, with respect to
clauses (B) and (C), for any such conflicts, violations, breaches,
defaults or other occurrences that would not (x) prevent or delay
consummation of the Transaction or otherwise prevent it from performing its obligations
under this Agreement or (y) have a Target Material Adverse Effect.

 

(ii)           Except
as set forth in Section 6.02(d)(ii) of the Target Disclosure
Letter, the execution and delivery by Target of this Agreement does not, and
the performance of its obligations hereunder will not, require any consent,
approval, authorization or permit of, or filing with or notification to, any
Governmental Authority except (A) for the filing of the Articles of Merger
with, and the acceptance for record of the Articles of Merger by, the SDAT and (B) where
the failure to obtain such consents, approvals, authorizations or permits, or
to make such filings or notifications, would not (x) prevent or delay
consummation of the Transaction or otherwise prevent it from performing its obligations
under this Agreement or (y) have a Target Material Adverse Effect.

 

(e)           Permits;
Compliance.  Except as set forth in Section 6.02(e) of
the Target Disclosure Letter, to the knowledge of Target, each of Target and
the Target Subsidiaries is in possession of all franchises, grants,
authorizations, licenses, permits, consents, certificates, approvals and orders
of any Governmental Authority necessary for each of Target or the Target
Subsidiaries to own, lease and operate the Target Properties or to carry on its
business as it is now being conducted (the “Applicable Permits”),

 

25

 

except
where the failure to have, or the suspension or cancellation of, any of the
Applicable Permits could not reasonably be expected to have a Target Material
Adverse Effect.  As of the date hereof,
no suspension or cancellation of any of the Applicable Permits is pending or,
to the knowledge of Target, threatened, except where the failure to have, or
the suspension or cancellation of, any of the Applicable Permits could not
reasonably be expected to have a Target Material Adverse Effect.  Neither Target nor any of the Target
Subsidiaries is in conflict with, or in default, breach or violation of,
(i) any Law applicable to Target or any of the Target Subsidiaries or by
which any of the Target Properties or assets is bound or affected, or
(ii) any note, bond, mortgage, indenture, contract, agreement, lease,
license, Applicable Permit, franchise or other instrument or obligation to
which Target or any of the Target Subsidiaries is a party or by which Target or
any of the Target Subsidiaries or any of their properties or assets is bound,
except for any such conflicts, defaults, breaches or violations that could not
reasonably be expected to have a Target Material Adverse Effect.

 

(f)            Litigation.  Except (i) as listed in Section 6.02(f) of
the Target Disclosure Letter, or (ii) for suits, claims, Actions,
proceedings or investigations arising in the ordinary course of business of Target
and the Target Subsidiaries which are adequately covered by insurance (it being
understood that litigation (A) arising from or related in any way to
Hazardous Materials or (B) related to any landlord/tenant rent collection
proceeding or regarding Target Properties Leases in excess of 5,000 square feet
shall not be considered in the ordinary course of business), there is no suit,
Action pending or, to Target’s knowledge, threatened against Target or any of
the Target Subsidiaries or any of the Target Properties that could reasonably
have a Target Material Adverse Effect or that question the validity of this
Agreement or any action to be taken by Target in connection with the
consummation of the Transaction.  None of
Target or the Target Subsidiaries is subject to any order, judgment, writ,
injunction or decree by any Governmental Authority, except as could not
reasonably be expected to have a Target Material Adverse Effect.

 

(g)           Target Properties and Target Properties Leases.

 

(i)            Prior to the Closing Date, the Target Properties shall be
owned by the entities shown on Schedules 1, 2 and 4 hereof and no other
person will have any ownership interest in or right to share in the profits of
any Target Property.

 

(ii)           Target has provided Acquiror all
policies of title insurance or updates or endorsements that are in the
possession of Target with respect to the Target Properties, and no claim has
been made against any such policy that has not been resolved and, to Target’s
knowledge, there are no facts or circumstances which would constitute the basis
for such a claim.  Except as set forth in
Section 6.02(g)(ii) of the Target Disclosure Letter, to Target’s
knowledge and subject to matters of record, there are no material exceptions
not shown on such title insurance policies.

 

(iii)          All
buildings currently under construction by the Target Group on the Target
Properties, all construction projects and building maintenance and

 

26

 

improvements
currently ongoing, all tenant improvements required to be performed under the
Target Properties Leases prior to the commencement of the initial term of a
Target Properties Lease or an existing expansion or renewal thereof that have
not been so completed as of the date of this Agreement (and have been
designated as Pre-LOI TI Work and other work), and all properties currently
under contract for acquisition as of the date of this Agreement by the Target
or Target Subsidiaries are listed as such in Section 6.02(g)(iii) of
the Target Disclosure Letter, other than routine building maintenance in the
ordinary course of business not exceeding $2,500.

 

(iv)          Except
as provided in Section 6.02(g)(iv) of the Target Disclosure
Letter, none of the Target Group (A) has received written notice of any violation
of any Law issued by any Governmental Authority, (B) has received written
notice of any structural defects relating to any Target Property which would
reasonably be expected to have a Target Material Adverse Effect, or (C) has
received written notice of any physical damage to any Target Property which
would, individually or in the aggregate, reasonably be expected to have a
Target Material Adverse Effect for which there is not insurance in effect
covering the cost of the restoration and the loss of revenue.

 

(v)           Except
as set forth in Section 6.02(g)(v) of the Target Disclosure
Letter, no tenant or third party has any option to purchase any of the Target
Properties, rights of first refusal or other agreements to purchase or sell any
Target Properties, other than as set forth in the Target Properties Leases.

 

(vi)          Except
(A) as set forth in Section 6.02(g)(vi) of the Target
Disclosure Letter, (B) for the Target Properties Leases and (C) for
secured loan documents entered into in the ordinary course of business, there
are no written agreements which restrict the Target Group from transferring any
of the Target Properties, and none of the Target Properties is subject to any
restriction on the sale or other disposition thereof or on the financing or release
of financing thereon.

 

(vii)         To
the knowledge of Target, (i) no certificate, permit or license from any
Governmental Authority having jurisdiction over any of the Target Properties or
any agreement, easement or other right which is necessary to permit the lawful
use and operation of the buildings and improvements on any of the Target
Properties or which is necessary to permit the lawful use and operation of all
driveways, roads, parking areas, out lots, and other means of egress and
ingress to and from any of the Target Properties has not been obtained and is
not in full force and effect, and there is no pending threat of modification or
cancellation of any of the same; and (ii) no written notice of any
violation of any federal, state or municipal law, ordinance, order, regulation
or requirement affecting any portion of any of the Target Properties has been
received by any of the Target Group with respect to the Target Properties from
any Governmental Authority and none of the Target Properties has received
notice that any of the Target Properties are in violation of any such federal,
state or municipal law, order, ordinance, regulation or requirement, including,
without limitation, the Americans with Disabilities Act, except for such
violations that would not have a Target Material Adverse Effect on the value of
any of the Target Properties, individually or in the aggregate.

 

27

 

(viii)        Except
as set forth in Section 6.02(g)(viii) of the Target Disclosure
Letter, there are no condemnation proceedings pending, or to Target’s
Knowledge, threatened, against any of the Target Properties.

 

(ix)          None
of the Target Group has received any notice to the effect that (A) any
betterment assessments have been levied against, or rezoning proceedings are
pending or threatened with respect to, any of the Target Properties or (B) any
zoning, building or similar law, code, ordinance, order or regulation is or
will be violated by the continued maintenance, operation or use of any
buildings or other improvements on any of the Target Properties or by the
continued maintenance, operation or use of the parking areas.

 

(x)           Section 6.02(g)(x) of
the Target Disclosure Letter sets forth a true, accurate and complete rent roll
for each of the Target Properties (the “Rent Roll”) as of the date specified in the
Target Disclosure Letter.  On the Closing
Date, Section 6.02(g)(x) of the Target Disclosure Letter will
be updated by Target to reflect the Rent Roll as of two (2) Business Days
prior to the Closing Date.  Section 6.02(g)(x) of
the Target Disclosure Letter sets forth a report listing all tenant
delinquencies (the “Delinquency
Report”) as of the date specified in the Target Disclosure
Letter.  On the Closing Date, Section 6.02(g)(x) of
the Target Disclosure Letter will be updated by Target to reflect the
Delinquency Report as of two (2) Business Days prior to the Closing
Date.  Except as noted in Section 6.02(g)(x) of
the Target Disclosure Letter, to Target’s knowledge, there is no violation of
any co-tenancy, exclusive or restriction listed in such Section 6.02(g)(x) of
the Target Disclosure Letter.

 

(xi)          Except
as set forth in the Target Disclosure Letter, Target has previously delivered
or made available to Acquiror a true, complete and correct copy of all Target
Properties Leases, tenancies or other agreements for all or any portion of the
Target Properties listed on the Rent Roll, all amendments, modifications,
assignments, subleases to which any member of the Target Group has consented
and supplements thereto and all guarantees with respect thereto.

 

(xii)         Each
of the Target Properties Leases is valid and subsisting and in full force and
effect and has not been amended, modified or supplemented.  Except as noted in Section 6.02(g)(xii) of
the Target Disclosure Letter, to the knowledge of Target, other than as set
forth in the Target Properties Leases, no tenant under a Lease has the right to
terminate such lease prior to the scheduled expiration thereof.  Except as set forth in Section 6.02(g)(xii) of
the Target Disclosure Letter, none of the Target Group has received any written
notice from any tenant under a Target Property Lease of more than 5,000 square
feet of any intention to vacate.

 

(xiii)        Except
as set forth in Section 6.02(g)(xiii) of the Target Disclosure
Letter, no member of the Target Group has received written notice from any
tenant under a Lease of any offset, defense or claim against rent payable by it
or other performance of obligations due from it under its lease.

 

28

 

(xiv)        Except
as set forth in Section 6.02(g)(xiv) of the Target Disclosure
Letter, to Target’s knowledge and without independent investigation, no tenant
under a Lease is currently in default under any monetary provision of its lease
nor is any tenant under a Lease currently in material default under any
non-monetary provision of its lease, and no such tenant is in arrears in the
performance of any monetary obligation required of it under its lease.  Except as set forth in Section 6.02(g)(xiv) of
the Target Disclosure Letter, Target, to Target’s knowledge and without
independent investigation, is not aware of any facts or circumstances which
with the passage of time and/or notice would constitute a default by any tenant
under a Lease.

 

(xv)         Except
as set forth in Section 6.02(g)(xv) of the Target Disclosure
Letter, Target has received no written notice stating that any tenant leasing
in excess of 5,000 square feet under a Lease is insolvent or that any such
tenant is unable to perform any or all of its material obligations under its
lease.

 

(xvi)        Except
as set forth in Section 6.02(g)(xvi) of the Target Disclosure
Letter, no tenant under any of the Target Properties Leases, or any guarantor,
has asserted any claim of which the Target Group has received written notice
which would materially affect the collection of rent from such tenant and the
Target Group has not received written notice of any material default or breach
on the part of the Target Group under any of the Target Properties Leases which
has not been cured within the applicable cure period.

 

(xvii)       Section 6.02(g)(xvii) of
the Target Disclosure Letter sets forth a list of all written commitments made
by the Target Group to enter into leases of 5,000 square feet or more of any of
the Target Properties or any portion thereof which has not yet been reduced to
a written lease, including a description of the right of any third party broker
to any outstanding brokerage or other commission incidental thereto and all
other financial terms, all in reasonable detail.  Section 6.02(g)(xvii) of the
Target Disclosure Letter also sets forth a complete list of all brokerage or
other commissions owed in whole or part as of the date hereof by the Target
Group relating to the Target Properties. 
Target has provided true and correct copies of all such written
commitments to Acquiror.

 

(xviii)      Except
as set forth in Section 6.02(g)(xviii) of the Target
Disclosure Letter and to the knowledge of Target, all Target Properties Leases
are valid and effective in accordance with their respective terms, and there is
not, under any of such Target Properties Leases, any material existing default
or any event which with notice or lapse of time or both would constitute such a
default, nor do any of such Target Properties Leases contain any provision
which would preclude the Surviving Entity, a Target Subsidiary or a NPI Entity
from occupying and using the leased premises for the same purposes and upon
substantially the same rental and other terms as are applicable to the
occupation and current use by the Target Group.

 

(xix)        Section 6.02(g)(xix) of
the Target Disclosure Letter sets forth a list of all of the letters of credit
with respect to which Target has any liability,

 

29

 

classified
as (A) those letters of credit for which Acquiror will substitute letters
of credit and if such letters of credit are drawn upon, Target shall reimburse
Acquiror the amount of such draw (the “Target Properties Escrow LCs”), (B) those
letters of credit for which Acquiror will substitute letters of credit and
assume all obligations thereunder (the “Target Properties LCs”) and (C) letters
of credit relating to properties other than Target Properties (the “Non-Target Properties Letters of
Credit”).

 

(xx)         Except
as set forth in Section 6.02(g)(xx) of the Target Disclosure
Letter, Target Group has not received any notices of threatened claims
regarding the Target Properties.

 

(xxi)        A
true and correct copy of the Acquisition Agreement has been supplied to Target
and there have been no amendments thereof. 
Miles & Stockbridge P.C. is the escrow agent under such
Acquisition Agreement and is holding the $800,000 Sewer System Credit (as such
term is defined therein) pursuant to Section 6.3 of such Acquisition
Agreement and none of the Sewer System Credit has been spent.  Work in connection with the Sewer System (as
such term is defined in the Acquisition Agreement) has been performed by Target
or Target Subsidiaries and the cost of such work incurred since September 6,
2006 shall be determined prior to Closing.

 

(h)                                 Intellectual Property.  Except as would not have a Target Material
Adverse Effect, (i) the conduct of business of the Target Group as
currently conducted with respect to the Target Properties does not, to Target’s
knowledge, infringe the Intellectual Property rights of any third parties and
(ii) with respect to Intellectual Property owned by or licensed to the
Target Group and material to the Target Properties, the Target Group has not
received any notice that it does not have the right to use such Intellectual
Property in the continued operation of its business as currently conducted.

 

(i)                                     Taxes.

 

(i)            There are no Liens for Taxes upon any assets of the
Target Group, except for Permitted Liens.

 

(ii)           Each
of the Target Group has timely filed with the appropriate taxing authority all
Tax Returns required to be filed by it prior to the date hereof.  Each such Tax Return is complete and accurate
in all material respects.  All Taxes have
been properly reflected in the statements of operations of the Target Group,
and have been paid prior to the imposition of any penalty.  None of the Target Group has executed or
filed with the IRS or any other taxing authority any agreement now in effect
extending the period for assessment or collection of any Tax.  Except as set forth in Section 6.02(i)(ii) of
the Target Disclosure Letter, none of the Target Group is a party to any
pending action or proceedings by any taxing authority for assessment or
collection of any Tax, and no claim for assessment or collection of any Tax has
been asserted against it.  Except as set
forth in the Target Disclosure Letter, true and complete copies of all federal,
state and local income or franchise Tax Returns filed by each member of the
Target Group with respect to taxable years commencing on or after January 1,
2003 have

 

30

 

been
delivered to Acquiror.  No claim has been
made in writing by a Governmental Authority in a jurisdiction where the Target
Group does not file Tax Returns that it is or may be subject to taxation by
that jurisdiction. There is no dispute or claim concerning any Tax liability of
the Target Group, (A) claimed or raised by any taxing authority in writing
or (B) as to which the Target Group has knowledge.  No issues have been raised in writing in any
examination by any taxing authority with respect to the Target Group which, by
application of similar principles, reasonably could be expected to result in a
material deficiency or increase in Tax for any other period not so examined. Section 6.02(i)(ii) of
the Target Disclosure Letter lists all federal and state income Tax Returns
filed with respect to the Target Group for taxable periods commencing on or
after January 1, 2003 that have been audited, and indicates those Tax
Returns, if any, that currently are the subject of audit.

 

(iii)          Target
and the Stockholders of Target as of April 1, 1998 made a valid election
for Target to be treated as an “S corporation”, as that term is defined in Section 1361(a) of
the Code, and such election will be in effect at the Closing Date.  There are no grounds for the revocation of
any such election and no such election will be revoked retroactively or
otherwise.  Target has been an S
corporation from April 1, 1998 through the date hereof.  Neither Target nor any of the stockholders of
Target has taken any action that would cause, or would result in, the
termination of the S corporation status of the Target.

 

(iv)          Section 6.02(i)(iv) of
the Target Disclosure Letter contains a copy of the Target’s election to be
treated as an S corporation, which was timely filed with the IRS and has not
been superseded by any subsequent filing. 
The IRS has not sent any correspondence to Target questioning the Target’s
status as an S corporation.

 

(v)           Target
(A) shall be taxed as an S corporation through the Closing Date and has
complied (and will comply) with all applicable provisions of the Code relating
to an S corporation through the Closing Date, (B) has operated, and
intends to continue to operate, in such a manner as to qualify as an S
corporation from 1998 and through Closing, and (C) has not taken or
omitted to take any action which would reasonably be expected to result in a
challenge to its status as an S corporation during such time period, and, to
the knowledge of Target, no such challenge is pending or threatened.

 

(vi)          Target,
for all taxable years commencing as of April 1, 1998, was eligible to and
did validly elect to be taxed as an S corporation for federal income tax
purposes and at all times thereafter continued such election and continued to
be so eligible to be taxed as an S corporation for federal income tax
purposes.  The “built-in gain”, as of December 31,
2005, of the assets owned indirectly by Target as listed on Section 6.02(i)(vi) of
the Target Disclosure Letter is true, accurate and complete.

 

(vii)         Target
shall not revoke its election to be taxed as an S corporation within the
meaning of Sections 1361 and 1362 of the Code. 
Target shall not

 

31

 

take
or allow any action that would result in the termination of its status as a
validly electing S corporation within the meaning of Sections 1361 and 1362 of
the Code.

 

(viii)        Any
disposition of the assets of Target and/or any of the Target Subsidiaries,
other than those listed on Section 6.02(i)(viii) of the Target
Disclosure Letter, will not be subject to the rules under Section 1374
of the Code.  As of Closing, Target shall
have no earnings and profits accumulated in any “non-REIT year” within the
meaning of Section 857(a)(2) of the Code.

 

(ix)          Target
and each of the Target Subsidiaries have withheld and paid all Taxes required
to have been withheld and/or paid in connection with amounts paid or owing to
any employee, former employee, independent contractor, creditor, stockholder,
or other third party.

 

(x)           Target
has not owned, directly or indirectly, an interest in any Subsidiary other than
(A) a “qualified subchapter S subsidiary” within the meaning of Section 1361(b)(3)(B) of
the Code, (B) an entity disregarded for federal income tax purposes or (C) an
entity treated as a partnership for federal income tax purposes.

 

(xi)          Neither
Target nor any of the Target Subsidiaries has made any election, or is required,
to treat any asset of any Subsidiary as owned by another person for tax
purposes (other than by reason of a Subsidiary being a “qualified S corporation
subsidiary” or a “disregarded entity” for federal income tax purposes and any
comparable provision of state, local or foreign law and except with respect to
assets beneficially owned by a Subsidiary and record title to which is held by
another entity).

 

(xii)         Neither
Target nor any of the Target Subsidiaries has requested, received or is subject
to any written ruling of a taxing authority related to Taxes or has entered
into any written and legally binding agreement with a taxing authority relating
to Taxes.

 

(xiii)        Neither
Target nor any of its Subsidiaries (A) is a party to or is otherwise
subject to any Tax allocation or sharing agreement other than pursuant to the
Target Properties Leases or matters appearing in the land records and (B) has
any liability for the Taxes of another person under law, by contract or
otherwise.

 

(xiv)        Neither
Target nor any Target Subsidiary is a party to any so-called “tax increment
financing” or similar agreement and none of the Target Properties are located
within or subject to any tax increment financing or other special tax district.

 

(xv)         Target
is not and has not been subject to passive income tax under Section 1375
of the Code.  Target and Target
Subsidiaries have not had gross receipts for any three consecutive fiscal years
subsequent to the taxable year ended December 31, 1998 of which more than
twenty-five percent (25%) were “passive investment income” (as such term is
defined in Section 1362(d)(3)(C) of the Code).

 

32

 

(xvi)        Except
as set forth in Section 6.02(i)(xvi) of the Target Disclosure
Letter, Target has not acquired assets from another corporation in which the
Target’s tax basis for the acquired assets was determined, in whole or in part,
by reference to the tax basis of the acquired assets (or any other property) in
the hands of the transferor.

 

(xvii)       As
of the Effective Time, Target will have no earnings and profits for federal
income tax purposes that were accumulated in any taxable year to which the
provisions of Sections 856 through 859 of the Code did not apply
with respect to Target or any Predecessor.  For purposes of this
representation, “Predecessor”
means any corporation the earnings and profits of which Target is required
to take into account under Section 381(c) of the Code, by one or more
successive applications of such Section.

 

(xviii)      The
tax basis as of December 31, 2005 of the Merger Properties and the Retail
Properties is shown in Section 6.02(i)(xviii) of the Target
Disclosure Letter and is true, accurate and complete.

 

(xix)        Target
agrees to timely file the federal and state income tax returns for Target and
Target Subsidiaries for the final taxable year ending immediately prior to the
Effective Time.  Target will timely make
an election under Treasury Regulation Section 1.1368-1(f)(3) to
distribute all of its “subchapter C” earnings and profits through a deemed
dividend to the Target Stockholders with respect to the final taxable year of
Target ending immediately prior to the Effective Time.

 

(j)                               Environmental
Matters.  Except as disclosed in Section 6.02(j) of
the Target Disclosure Letter or in the environmental audits/reports listed
thereon (all representations being made only to the knowledge of Target):

 

(i)            None of the Target Group has received written notice that
any complaint has been filed that remains unresolved, any penalty has been
assessed that has not been paid and any investigation or review is pending or
threatened by any Governmental Entity with respect to any alleged failure by
the Target Group to have any permit required under any applicable Environmental
Law or with respect to any treatment, storage, recycling, transportation,
disposal or “release” (as defined in 42 U.S.C. § 9601(22) (“Release”))
by the Target Group of any Hazardous Material in violation of any applicable
Environmental Law.

 

(ii)           Except in material compliance with
applicable Environmental Laws, (A) there are no asbestos-containing
materials present on any Target Property, (B) there are no regulated
levels of PCBs present on any Target Property, and (C) there are no underground
storage tanks, active or abandoned, used for the storage of Hazardous Materials
currently present on any Target Property.

 

(iii)          None of Target, NPI or any Target
Subsidiary has received written notice of a claim against any of them, that has
not been resolved, to the effect that it is liable to a third party, including
a Governmental Entity, as a result of a Release of a

 

33

 

Hazardous Material into the environment in material
violation of any applicable Environmental Law at any Target Property nor has
any reason to believe such a claim is expected.

 

(iv)          None of the Target Group has received
written notice of (A) any Liens arising under or pursuant to any
applicable Environmental Law on any Target Property or (B) any action
taken or in process which could subject any Target Property to such Liens.  The Target Group currently does not have any
duty under any applicable Environmental Law to place any restriction relating
to the presence of Hazardous Material at any Target Property which have not
already been placed.

 

(v)           None of the Target Group has transported or arranged for
the transportation of any Hazardous Material to any location which is the
subject of any action, suit or proceeding that could be reasonably expected to
result in claims against the Target Group related to such Hazardous Material
for clean-up costs, remedial work, damages to natural resources or personal
injury claims, including claims under CERCLA and the rules and regulations
promulgated thereunder and, to the knowledge of Target, there is no reasonable
basis for such claim.

 

(vi)          No Hazardous Materials have been or
are threatened to be spilled, released, discharged or disposed of at any site
presently or formerly owned, operated, leased or used by the Target Group, or,
to the knowledge of Target, are present in the soil, sediment, water or
groundwater at any such site.  No Target
Property is listed or proposed for listing on the National Priorities List
promulgated pursuant to CERCLA or on any similar list of sites under any
applicable Environmental Law of any other Governmental Entity where such
listing requires active investigation or clean-up.

 

(vii)         None of the Target Group has in its
possession or control any environmental assessment or investigation reports
prepared within the last five years that disclose a material environmental
condition with respect to the Target Properties which has not been addressed or
remediated (or is not in the process of being remediated) or been made the
subject of an environmental insurance policy maintained by the Target Group.

 

(viii)        Except as set forth in Section 6.02(j)(viii) of
the Target Disclosure Letter, Target has not entered into any agreements to
provide indemnification to any third party purchaser since January 1,
2003, or to any lender with respect to existing loans, pursuant to
Environmental Laws in relation to any property or facility previously owned or
operated by the Target Group.

 

(ix)          The backup generator at 9930 Franklin
Square Drive that exhibited oil spill characteristics was the result of an
overfill, not a spill, and there is no subsurface impact.

 

(k)                                 Contracts.  Except for the Target Material Contracts,
neither Target nor any Target Subsidiary is a party to or bound by any
contract, other than (i) those contracts entered into in the ordinary
course of business consistent with past practice that

 

34

 

do not extend beyond the
Closing Date or are terminable at the option of Target without penalty and (ii) public
works agreements, utility, grading, storm water management and other
development agreements or permits that are binding on Target or Target
Subsidiaries as of the date hereof but which shall be assigned by
Target or Target Subsidiaries prior to the Effective Time as a result of
which neither Target nor any Target Subsidiary shall have any liability
thereunder as of the Effective Time. 
Copies of all of the Scheduled Contracts have been provided to Acquiror
and are true and correct.  None of the
Target Group has received any notice of a default that has not been cured under
any of the Scheduled Contracts or is in default respecting any payment
obligations thereunder beyond any applicable grace periods except where such
default has not had or could not reasonably be expected to have a Target
Material Adverse Effect or such default would not prevent or delay consummation
of the Transaction.

 

(i)            Each Target Material Contract is valid and binding on
each Target Group party thereto, and none of the Target Group is in default
under any Target Material Contract, except as would not (A) prevent or
materially delay consummation of the Transaction, or (B) result in a
Target Material Adverse Effect.

 

(l)                                Insurance.  Section 6.02(l) of the
Target Disclosure Letter sets forth a correct and complete list of the
insurance policies held by, or for the benefit of, the Target Group, including
the underwriter of such policies and the amount of coverage thereunder.  The Target Group has paid, or caused to be
paid, all premiums due under such policies and has not received written notice
that any such member is in default with respect to any obligations under such
policies.  None of the Target Group has
received any written notice of cancellation or termination with respect to any
existing insurance policy set forth in Section 6.02(l) of the
Target Disclosure Letter that is held by, or for the benefit of, any of the
Target Group.  Except as set forth in Section 6.02(l) of
the Target Disclosure Letter, in the past three (3) years there have been
no claims made under or against the insurance policies listed thereon.  Effective upon the date hereof, Acquiror,
Acquiror OP and the Surviving Entity shall be named as additional insureds, as
their interests may appear, with respect to all of the insurance policies held
by or for the benefit of the Target Group as they relate to the Target
Properties.  Target will include all
Target Subsidiaries as additional insureds under such policies.

 

(m)                        Related Party
Transactions.  Except as
set forth in Section 6.02(m) of the Target Disclosure Letter
and except for ordinary course advances to employees, set forth in Section 6.02(m) of
the Target Disclosure Letter is a list of all arrangements, agreements and
contracts entered into by Target or any of the Target Subsidiaries under which
continuing obligations exist with any Person who is an officer, director or
Affiliate of Target or any of the Target Subsidiaries, any member of the “immediate
family” (as such term is defined in Item 404 of Regulation S-K promulgated
under the Securities Act) of any of the foregoing or any entity of which any of
the foregoing is an Affiliate.

 

(n)                            Brokers.  No broker, finder or investment banker (other
than Wachovia Capital Markets, LLC) is entitled to any brokerage, finder’s or other
fee or commission in connection with the Transaction based upon arrangements
made by or on

 

35

 

behalf
of Target, Target Subsidiaries or NPI. 
At Closing, Target shall have delivered to Acquiror a release by
Wachovia Capital Markets, LLC in the form attached hereto as Exhibit D
releasing Acquiror, Acquiror OP and the Surviving Entity from any liability for
any brokerage, finder’s or other fee or commission due to Wachovia Capital
Markets, LLC relating to the Merger and except as set forth in the documents
evidencing the Short Term Loan.

 

(o)                                 Labor and ERISA Matters.

 

(i)            None of the Target Group is a party to, or bound by, any
collective bargaining agreement, contract or other agreement or understanding with
a labor union or labor union organization. There is no unfair labor practice or
labor arbitration proceeding pending or, to the knowledge of Target, threatened
against the Target Group, except for any such proceeding which have not had or
could not reasonably be expected to have a Target Material Adverse Effect. To
the knowledge of Target, there are no organizational efforts with respect to
the formation of a collective bargaining unit presently being made or
threatened involving employees of the Target Group.

 

(ii)           Target has never had any employees,
has never maintained any employee benefit plans (including, without limitation
employee benefit plans within the meaning of Section 3(3) of ERISA)
except as disclosed on Section 6.02(o)(ii) of the Target Disclosure
Letter, and, except as disclosed on Section 6.02(o)(ii) of the
Target Disclosure Letter, as of the Effective Time shall not have any
liabilities or contingent liabilities with respect to employee benefit plans
maintained by any member of the Target Group or any ERISA Affiliate of
Target.  The transactions contemplated by
this Agreement will not result in any liability or obligation, contingent or
otherwise as of the Effective Time, to Target, the Surviving Entity, nor any
ERISA Affiliate of the Surviving Entity, with respect to employees or employee
benefit plans of any member of the Target Group or any ERISA Affiliate of
Target, except for any obligations assumed as set forth in Section 8.07.  Section 6.02(o)(ii) of the
Target Disclosure Letter is a complete and accurate list of all employee
benefit plans and deferred compensation plans (including, without limitation,
employee benefit plans within the meaning of Section 3(3) of ERISA)
in which employees of the Target Group whose employment involves services in
connection with the Target Properties participate.  As of the date hereof, all persons owed any
money under the section “Employee Benefit Plans of Target” set forth in Section 6.02(o)(ii) of
the Target Disclosure Letter are listed in Section 6.02(o)(ii) of
the Target Disclosure Letter under the section “List of Persons Owed Money
Under Target Employee Benefit Plans.” 
All obligations under the “Employee Benefit Plans of Target” set forth
in Section 6.02(o)(ii) of the Target Disclosure Letter shall
be fully paid and satisfied at or prior to Closing, other than the Dollenberg
Retirement Obligations.  Except for any
obligations assumed as set forth in Section 8.07 of this Agreement
and except for the Dollenberg Retirement Obligations, Target shall have no
liability under any of the “Employee Benefit Plans of NPI” set forth in Section 6.02(o)(ii) of
the Target Disclosure Letter.  At the
Effective Time, all employee benefit plans and deferred compensation

 

36

 

plans applicable to Target or Target Subsidiaries
shall be terminated, except for the Dollenberg Retirement Obligations.

 

(p)                                 Office Assumed Loans.  Copies of all documents evidencing and
relating to the Office Assumed Loans (the “Office Assumed
Loan Documents”) have been provided to
Acquiror and are true and correct.  None
of the Target Group has received any notice of a default that has not been
cured under any of the Office Assumed Loan Documents or is in default respecting
any payment obligations thereunder beyond any applicable grace periods.  None of the Target Group is aware of any
default by Target under the Office Assumed Loan Documents that has not been
previously disclosed to Acquiror and cured by Target.

 

(q)                                 Personal
Property.  At Closing,
Target shall own all of the personal property set forth in Section 6.02(q) of
the Target Disclosure Letter free and clear of any liens and encumbrances.

 

(r)                                    No Undisclosed
Liabilities; Indebtedness.  As
of the Closing Date, the only liabilities of Target and Target Subsidiaries
shall be the Assumed Loans, the Short Term Loan, and the liability, if any,
under those Scheduled Contracts which have not been terminated or assigned to
the Liquidating Trust or another party prior to the Effective Date.  There have been and are no defaults under the
Office Assumed Loan Documents or the Short Term Loan Documents.  To Target’s knowledge, Columbia Equity
Finance LLC, Rivers Center III Investors LLC and Woods Investors LLC have
complied, since their inception, with all single purpose entity and bankruptcy
remote requirements under the loan documents to which each is a party.  As of the Closing Date, the only liabilities
of the Retail Entities for monies borrowed shall be the Existing Retail
Indebtedness.  As of the Closing Date,
the maximum aggregate amount due under the Existing Retail Indebtedness, the
Short Term Loan and the Assumed Loans shall be $129,648,266 (which has been
computed assuming Existing Retail Indebtedness of $29,146,398, Short Term Loan
of $83,018,978 and Assumed Loans of $17,482,890).

 

(s)                                   No Other
Representations or Warranties.

 

(i)            Except for the representations and
warranties contained in Section 6.02 of this Agreement, Acquiror,
Acquiror OP and Merger Subsidiary acknowledge that none of Target, NPI or nor
any other Person or entity on behalf of Target or NPI has made, and none of
Acquiror, Acquiror OP or Merger Subsidiary has relied upon, any representation
or warranty, whether express or implied, with respect to Target, NPI or any of
the Target Subsidiaries or their respective businesses, affairs, assets,
liabilities, financial condition, results of operations or prospects or with
respect to the accuracy or completeness of any other information provided or
made available to Acquiror and Merger Subsidiary by or on behalf of Target or
NPI.  None of Target, NPI or any other
Person or entity will have, or be subject to, any liability or indemnification
obligation to Acquiror, Acquiror OP, Merger Subsidiary or any other Person or
entity resulting from the distribution in written or verbal communications to
Acquiror or Merger Subsidiary or use by Acquiror, Acquiror OP or Merger
Subsidiary of, any such

 

37

 

information,
including any information, documents, projections, forecasts or other material
made available to Acquiror, Acquiror OP or Merger Subsidiary in online “data
rooms,” confidential information memoranda or management interviews and
presentations in expectation of the transactions contemplated by this
Agreement.

 

(ii)           In connection with any investigation
by Acquiror, Acquiror OP and Merger Subsidiary of Target, the Target
Subsidiaries and the Target Properties, Acquiror and Merger Subsidiary have
received or may receive from Target and the Target Subsidiaries and/or other
persons or entities on behalf of Target certain projections, forward-looking
statements and other forecasts and certain business plan information in written
or verbal communications.  Acquiror,
Acquiror OP and Merger Subsidiary acknowledge that there are uncertainties
inherent in attempting to make such estimates, projections and other forecasts
and plans, that Acquiror, Acquiror OP and Merger Subsidiary are familiar with
such uncertainties, that Acquiror, Acquiror OP and Merger Subsidiary are taking
full responsibility for making their own evaluation of the adequacy and
accuracy of all estimates, projections and other forecasts and plans so
furnished to them (including the reasonableness of the assumptions underlying
such estimates, projections, forecasts or plans), and that Acquiror. Acquiror
OP and Merger Subsidiary shall have no claim against any Person or entity with
respect thereto.  Accordingly, Acquiror,
Acquiror OP and Merger Subsidiary acknowledge that none of Target, NPI or any
other Person or entity on behalf of Target or NPI makes any representation or
warranty with respect to such estimates, projections, forecasts or plans
(including the reasonableness of the assumptions underlying such estimates,
projections, forecasts or plans).

 

6.03.                     Representations and Warranties of Acquiror,
Acquiror OP and Merger Subsidiary.

 

Acquiror,
Acquiror OP and Merger Subsidiary hereby jointly and severally represent and
warrant to Target as follows:

 

(a)                                 Organization.

 

(i)            Acquiror is a real estate investment trust duly
organized, validly existing and in good standing under the Laws of the State of
Maryland.  The Acquiror Declaration of
Trust is in effect and no dissolution, revocation or forfeiture proceedings
regarding Acquiror have been commenced. 
Acquiror is in good standing under the Laws of any other jurisdiction in
which the character of the properties owned, leased or operated by it therein
or in which the transaction of its business makes such qualification or
licensing necessary.  Acquiror has all
requisite power and authority to own, lease and operate its properties and to
carry on its businesses as now conducted and proposed by Acquiror to be
conducted.

 

(ii)           Acquiror OP is a limited partnership
duly formed, validly existing and in good standing under the laws of
Delaware.  The certificate of formation
is in effect and no dissolution, revocation or forfeiture proceedings regarding
Acquiror OP

 

38

 

have been commenced. 
Acquiror OP is in good standing under the Laws of any other jurisdiction
in which the character of the properties owned, leased or operated by it
therein or in which the transaction of its business makes such qualification or
licensing necessary.  Acquiror OP has all
requisite power and authority to own, lease and operate its properties and to
carry on its businesses as now conducted and proposed by Acquiror OP to be
conducted.

 

(iii)          Merger Subsidiary is a business trust
duly formed, validly existing and in good standing under the Laws of the State
of Maryland.  The certificate of trust of
Merger Subsidiary is in effect and no dissolution, revocation or forfeiture
proceedings regarding Merger Subsidiary have been commenced.  Merger Subsidiary is in good standing under
the Laws of any other jurisdiction in which the character of the properties
owned, leased or operated by it therein or in which the transaction of its
business makes such qualification or licensing necessary.  Merger Subsidiary has all requisite power and
authority to own, lease and operate its properties and to carry on its
businesses as now conducted and proposed by Merger Subsidiary to be conducted.

 

(b)                                 Authority Relative to this Agreement.

 

(i)            Each of Acquiror, Acquiror OP and Merger Subsidiary has
all necessary power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby.  No other proceedings on the part of Acquiror,
Acquiror OP or Merger Subsidiary, or any of their respective subsidiaries, are
necessary to authorize this Agreement or to consummate the Transaction.  This Agreement has been duly and validly
executed and delivered by each of Acquiror, Acquiror OP and Merger Subsidiary
and, assuming due authorization, execution and delivery hereof by Target, constitutes
a valid, legal and binding agreement of each of Acquiror, Acquiror OP and
Merger Subsidiary, enforceable against each of Acquiror, Acquiror OP and Merger
Subsidiary in accordance with and subject to its terms and conditions, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer and similar Laws of general
applicability relating to or affecting creditors’ rights or by general
equitable principles.

 

(ii)           The board of trustees of Acquiror has
duly and validly authorized the execution and delivery of this Agreement by
Acquiror and by Acquiror OP and approved the consummation of the Transaction,
and taken all actions required to be taken by Acquiror or Acquiror OP for the
consummation of the Transaction.

 

(iii)          The board of trustees of Merger
Subsidiary has duly and validly authorized the execution and delivery of this
Agreement and approved the consummation of the Transaction, and taken all
actions required to be taken by Merger Subsidiary for the consummation of the
Transaction.

 

(c)                                  Consents and Approvals; No Violations.

 

(i)            The execution and delivery of this
Agreement by Acquiror or Merger Subsidiary does not, and the performance of
Acquiror or Merger Subsidiary’s

 

39

 

obligations
hereunder will not, (A) conflict with or violate the Acquiror Declaration
of Trust or Acquiror Bylaws, the certificate of formation or limited
partnership agreement of Acquiror OP or the certificate of trust or declaration
of trust of Merger Subsidiary, (B) assuming that all consents, approvals,
authorizations and other actions described below in subsection (ii) have
been obtained and all filings and obligations described below in
subsection (ii) have been made, conflict with or violate any Law
applicable to Acquiror, Acquiror OP or Merger Subsidiary or by which any of its
properties or assets is bound or affected, or (C) result in any breach of,
or constitute a default (or an event which, with notice or lapse of time or
both, would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the
creation of a Lien or other encumbrance on any of its properties or assets
pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease,
license, permit, franchise or other instrument or obligation to which it is a
party or by which it or any of its properties or assets is bound or affected,
except, with respect to clauses (B) and (C), for any such conflicts,
violations, breaches, defaults or other occurrences that would not (x) prevent
or delay consummation of the Transaction or otherwise prevent it from
performing its obligations under this Agreement or (y) have an Acquiror
Material Adverse Effect.

 

(ii)           The execution and delivery of this
Agreement by Acquiror or Merger Subsidiary does not, and the performance of
Acquiror or Merger Subsidiary’s obligations hereunder will not, require any
consent, approval, authorization or permit of, or filing with, or notification
to, any Governmental Authority, except (A) for applicable requirements, if
any, of the Exchange Act, Blue Sky Laws and state takeover Laws, and (B) where
the failure to obtain such consents, approvals, authorizations or permits, or
to make such filings or notifications, would not (x) prevent or delay
consummation of the Transaction, or otherwise prevent Acquiror from performing
its obligations under this Agreement or (y) have an Acquiror Material
Adverse Effect.

 

(d)                                 Litigation.  There is no Action pending or, to Acquiror’s
knowledge, threatened against Acquiror or any of the Acquiror Subsidiaries or
any of its or their respective properties or assets that questions the validity
of this Agreement or any action to be taken by Acquiror or Merger Subsidiary in
connection with the consummation of the Merger.

 

(e)                                  Brokers.  No broker, finder or investment banker is
entitled to any brokerage, finder’s or other fee or commission payable by
Acquiror in connection with the Merger based upon arrangements made by and on
behalf of Acquiror or Merger Subsidiary or any of their Subsidiaries.

 

(f)                                   Ownership of Merger Subsidiary; No Prior Activities.  Merger Subsidiary is a direct
wholly owned subsidiary of Acquiror. 
Merger Subsidiary is a disregarded entity for federal income tax
purposes.  Merger Subsidiary has not
conducted any activities other than in connection with its organization, the
negotiation and execution of this Agreement and the consummation of the
transactions contemplated hereby.  Merger
Subsidiary has no subsidiaries.

 

40

 

(g)                                  No Ownership of Target Common Stock.  Neither Acquiror nor any of the Acquiror
Subsidiaries, including Merger Subsidiary, own any Target Common Stock or other
securities of Target.

 

6.04.                     Representations and Warranties of Acquiror and
Acquiror OP.

 

Acquiror
and Acquiror OP represent and warrant to Target as follows:

 

(a)                                 Capitalization.

 

(i)            As of the date of this Agreement, the authorized capital
stock of Acquiror consists of 75,000,000 Acquiror Common Shares and 15,000,000
Acquiror Preferred Shares, consisting of (1) 42,375,505 outstanding
Acquiror Common Shares, (2) 2,200,000 8.0% Series G Cumulative
Redeemable Preferred Shares, all of which were issued and outstanding, (3) 2,000,000
7.5% Series H Cumulative Redeemable Preferred Shares, all of which were
issued and outstanding and (4) 3,390,000 7.625% Series J Cumulative
Redeemable Preferred Shares of which 3,390,000 were issued and outstanding.

 

(ii)           All outstanding Acquiror Common
Shares and Acquiror Preferred Shares are, and the Common Share Consideration
and the Preferred Share Consideration to be issued in connection with the
Merger will be, duly authorized, validly issued, fully paid and nonassessable and
not subject to, or issued in violation of, any preemptive right, purchase
option, call option, right of first refusal, subscription or any other similar
right.

 

(iii)          Acquiror owns approximately 82.4% of
the outstanding common units, 2,200,000 Series G Preferred Units,
2,000,000 Series H Preferred Units and 3,390,000 Series J Preferred
Units issued by Acquiror OP, and 352,000 Series I Preferred Units issued
by Acquiror OP are owned by a third party and have a liquidation preference of
$25.00.

 

(iv)          The authorized capital shares of
Merger Subsidiary consists of 1,000 Merger Subsidiary Common Shares.  All of the issued and outstanding capital
shares of Merger Subsidiary are owned by Acquiror or Acquiror Subsidiaries. Merger
Subsidiary does not have issued or outstanding any options, warrants,
subscriptions, calls, rights, convertible securities or other agreements or
commitments obligating Merger Subsidiary to issue, transfer or sell any Merger
Subsidiary Common Shares to any Person, other than Acquiror Subsidiaries.

 

(v)           Except as provided herein, there are no outstanding
restricted Acquiror Common Shares, performance share awards, stock options,
stock appreciation rights or dividend equivalent rights relating to Acquiror
Common Shares.

 

(vi)          There is no voting debt of Acquiror or
any Acquiror Subsidiary outstanding.

 

41

 

(vii)         All dividends or distributions on
securities of Acquiror that have been declared or authorized prior to the date
of this Agreement have been paid in full.

 

(b)                                 SEC Documents; Financial Statements.

 

(i)            Acquiror has filed with or furnished to the SEC, and has
heretofore made available to Target (by public filing with the SEC or
otherwise) true and complete copies of, all reports, schedules, forms,
statements and other documents required to be filed with or furnished to the
SEC by Acquiror since January 1, 2006 (the “Applicable Date”) and prior to the date hereof (collectively, the “Acquiror SEC Documents”).  As of its respective date, each
Acquiror SEC Document complied as to form in all material respects with the
requirements of the Exchange Act or the Securities Act, as the case may be, as
and to the extent applicable thereto, and the rules and regulations of the
SEC promulgated thereunder applicable to such Acquiror SEC Document.  Except to the extent that information
contained in any Acquiror SEC Document filed and publicly available prior to
the date of this Agreement has been revised or superseded by a later Acquiror
SEC Document, none of the Acquiror SEC Documents contains any untrue statement
of a material fact or omits to state any material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

(ii)           The consolidated financial statements
of Acquiror included in the Acquiror SEC Documents complied as of their
respective dates in all material respects with the then applicable accounting
requirements and the published rules and regulations of the SEC with
respect thereto, were prepared in accordance with GAAP applied on a consistent
basis during the periods involved (except as may be indicated therein or in the
notes thereto) and fairly presented in all material respects the consolidated
financial position of Acquiror and its consolidated Subsidiaries as of the
dates thereof and the consolidated results of their operations and their
consolidated cash flows for the periods then ended, all in accordance with GAAP
(subject, in the case of unaudited statements, to normal year-end audit
adjustments and to any other adjustments described therein).

 

(c)                                  No Undisclosed Liabilities.  Subsequent to the respective dates as of
which information is given in Acquiror SEC Documents, except as described in
Acquiror SEC Documents, Acquiror and Acquiror Subsidiaries have not incurred
any material liability or obligation, direct or contingent, nor entered into
any material transaction, in each case not in the ordinary course of business,
that could result in an Acquiror Material Adverse Effect.

 

(d)                                 Absence of Certain Changes or Events.  Subsequent to the respective dates as of
which information is given in Acquiror SEC Documents, (i) neither Acquiror
nor any of Acquiror Subsidiaries has sustained any material casualty loss,
condemnations or interference with their respective businesses or properties
from fire, flood, hurricane, accident or other calamity, whether or not covered
by insurance, or from

 

42

 

any labor dispute or any legal or governmental
proceeding that could result in an Acquiror Material Adverse Effect and (ii) there
has not been any development or event that could be reasonably likely to result
in an Acquiror Material Adverse Effect, except in each case as described in or
contemplated by Acquiror SEC Documents.

 

(e)                                  Compliance with Laws.  To Acquiror’s knowledge, Acquiror and
Acquiror Subsidiaries possess adequate certificates, authorities, consents,
authorizations or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by them, have complied, in all
material respects, with the laws, regulations and orders known by them to be
applicable to them or their respective businesses and properties, the absence
of which or the failure to comply with could result in an Acquiror Material
Adverse Effect and have not received any notice of proceedings relating to the
revocation or modification of any such certificate, authority, consents,
authorizations or permit that, if determined adversely to Acquiror or any of
Acquiror Subsidiaries, would individually or in the aggregate have an Acquiror
Material Adverse Effect.

 

(f)                                   Environmental Matters.

 

(i)            Except for activities, conditions, circumstances or
matters that would not have an Acquiror Material Adverse Effect, (A) to
the knowledge of Acquiror, neither Acquiror nor any of Acquiror Subsidiaries
has violated any Environmental Laws (and Acquiror and Acquiror Subsidiaries are
in compliance with all requirements of applicable permits, licenses, approvals
or other authorizations issued pursuant to Environmental Laws); (B) to the
knowledge of Acquiror, none of Acquiror or Acquiror Subsidiaries has caused or
suffered to occur any Release (as hereinafter defined) of any Hazardous
Materials into the Environment (as hereinafter defined) on, in, under or from
any property owned by Acquiror or Acquiror Subsidiaries that would reasonably
be expected to result in the incurrence of liabilities under, or any violations
of, any Environmental Law or give rise to the imposition of any Lien, under any
Environmental Law;

 

As
used herein, “Environment”
shall mean any surface water, drinking water, ground water, land surface,
subsurface strata, river sediment, buildings, structures, and indoor and
outdoor air and “Release”
shall mean any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping, emanating or disposing of
any Hazardous Materials into the Environment, including, without limitation,
the abandonment or discard of barrels, containers, tanks (including, without
limitation, underground storage tanks) or other receptacles containing or
previously containing and containing a residue of any Hazardous Materials.

 

(ii)           To the knowledge of Acquiror, none of
the environmental consultants which prepared environmental and asbestos
inspection reports with respect to any of the properties was employed for such
purpose on a contingent basis or has any substantial interest in Acquiror or
any of Acquiror Subsidiaries, and none of them nor any

 

43

 

of their directors, officers or employees is
connected with Acquiror or any of Acquiror Subsidiaries as a promoter, selling
agent, voting trustee, director, officer or employee.

 

(g)                                  Litigation.  Except as disclosed in Acquiror SEC
Documents, there are no pending actions, suits or proceedings against or, to
the knowledge of Acquiror, affecting Acquiror, any of Acquiror Subsidiaries or
any of their respective properties or any of their respective officers or
trustees that, if determined adversely to Acquiror or any of Acquiror
Subsidiaries or any of their respective officers or trustees, would
individually or in the aggregate have an Acquiror Material Adverse Effect; and,
to the knowledge of Acquiror, no such actions, suits or proceedings are
threatened or contemplated, in each case, before or by any federal or state
court, commission, regulatory body, administrative agency or other governmental
body, domestic or foreign, having jurisdiction over Acquiror, any of Acquiror
Subsidiaries or assets which would individually or in the aggregate have an
Acquiror Material Adverse Effect.

 

(h)                                 Investment Company Act of 1940.  Acquiror is not and, after giving effect to
the Transaction, will not be an “investment company” as defined in the
Investment Company Act of 1940, as amended.

 

(i)                                     Taxes.

 

(i)            Acquiror and each of Acquiror Subsidiaries has filed all
foreign, federal, state and local income tax returns that are required to be
filed or has requested extensions thereof (except in any case in which the
failure so to file would not have an Acquiror Material Adverse Effect) and has
paid all taxes required to be paid by it and any other assessment, fine or
penalty levied against it, to the extent that any of the foregoing is due and
payable, except for any such tax, assessment, fine or penalty that is currently
being contested in good faith or as described in or contemplated by Acquiror
SEC Documents or which would not result in an Acquiror Material Adverse Effect.

 

(ii)           Commencing with Acquiror’s taxable
year ended December 31, 1992, Acquiror was organized and has operated in
conformity with the requirements for qualification and taxation as a REIT.  All statements in Acquiror SEC Documents
regarding Acquiror’s qualification as a REIT are true, complete and correct in
all material respects.

 

(j)                                    No Conflict or Violation.  To the knowledge of Acquiror, neither
Acquiror nor any of Acquiror Subsidiaries is in breach or violation of its
respective declaration of trust, charter, bylaws, partnership agreement or
other organizational document, as the case may be, or in default in the
performance of any obligation, agreement, covenant or condition contained in
any indenture, loan agreement, mortgage, bond, debenture, note agreement, joint
venture or partnership agreement, lease or other agreement or instrument that
is material to Acquiror and Acquiror Subsidiaries, taken as a whole, and to
which Acquiror or any of Acquiror Subsidiaries is a party or by which Acquiror
or any of Acquiror Subsidiaries or their respective property is bound (and
there is no event which, whether with or without the giving of notice, or
passage of time or

 

44

 

both, would constitute a default under any of
foregoing), where such breach, violation or default would have an Acquiror
Material Adverse Effect.

 

(k)           Vote Required. 
No vote of the holders of any class or series of Acquiror’s capital
stock is required to approve this Agreement, the Merger or any of the
transactions contemplated hereby.

 

(l)            No
Other Representations or Warranties. 
Except for the representations and warranties contained in this Article VI,
Target acknowledges that none of Acquiror, Acquiror OP nor any other Person or
entity on behalf of Acquiror or Acquiror OP has made, nor has Target relied upon,
any representation or warranty, whether express or implied, with respect to
Acquiror or any of the Acquiror Subsidiaries or their respective businesses,
affairs, assets, liabilities, financial condition, results of operations,
future operating or financial results, estimates, projections, forecasts, plans
or prospects (including the reasonableness of the assumptions underlying such
estimates, projections, forecasts, plans or prospects) or with respect to the
accuracy or completeness of any other information provided or made available to
Target by or on behalf of Acquiror or Acquiror OP.  Target acknowledges that there are
uncertainties inherent in attempting to make such estimates, projections and
other forecasts and plans, that Target is taking full responsibility for making
their own evaluation of the adequacy and accuracy of all estimates, projections
and other forecasts and plans so furnished to them (including the
reasonableness of the assumptions underlying such estimates, projections,
forecasts or plans).  None of Acquiror,
Acquiror OP nor any other Person or entity will have, or be subject to, any
liability or indemnification obligation to Target or any other Person or entity
resulting from the distribution in written or verbal communications to Target
or use by Target of, any such information, including any information,
documents, estimates, projections, forecasts, plans, prospects, forward looking
statements or other material made available to Target in online “data rooms,”
confidential information memoranda or management interviews and presentations
in expectation of the transactions contemplated by this Agreement, except to
the extent any such information is deemed to be “made available” to the Company
by Acquiror for purposes of this Article VI.

 

ARTICLE VII.

COVENANTS

 

7.01.                     Stockholders’ Meeting.

 

Target
shall, in accordance with applicable Law and Target Charter and Target Bylaws, (a) duly
call, give notice of, convene and hold the Target Stockholders Meeting as
promptly as reasonably practicable after the date of this Agreement, but in no
event later than February 14, 2007, and (b) except as is reasonably
likely to be required by the Target Board’s duties under applicable Law, (i) include
in the Proxy Statement the recommendation of the Target Board that Target’s
Stockholders approve the Merger and (ii) use its reasonable efforts to
obtain Target Stockholder Approval.

 

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7.02.                     Registration Statement.

 

Prior
to the Effective Time, Acquiror and the Target Stockholders shall enter into
the Registration Rights Agreement.  The
parties hereto shall cooperate with each other in the preparation of the
Registration Statement, and Acquiror shall notify Target of the receipt of any
comments of the SEC with respect to the Registration Statement and of any
requests by the SEC for any amendment or supplement thereto or for additional
information and shall provide to Target copies of all correspondence between
Acquiror or any representative of Acquiror and the SEC.  Acquiror shall give Target and its counsel
the opportunity to review the Registration Statement prior to its being filed
with the SEC and shall give Target and its counsel the opportunity to review
all amendments and supplements to the Registration Statement and all responses
to requests for additional information and replies to comments prior to their
being filed with, or sent to, the SEC. 
Target shall use its commercially reasonable efforts to obtain the completed
accredited investor questionnaires from the Target Stockholders prior to the
Closing Date.  Target agrees to furnish a
copy of the offering circular or other such offering document prepared by
Acquiror to the Target Stockholders, the distribution of which shall be at
Target’s expense, at the time Target distributes notice of the Target
Stockholders Meeting to the Target Stockholders.

 

7.03.                     Access to Information; Confidentiality.

 

(a)           Upon reasonable notice and subject to applicable Laws
relating to the exchange of information, Target shall, and shall cause each of
the Target Subsidiaries to, afford to the officers, employees, accountants,
counsel and other representatives of Acquiror, reasonable access during normal
business hours during the period prior to the Effective Time, to all its properties,
books, contracts, commitments, records, officers, employees, accountants,
counsel and other representatives and, during such period, Target shall, and
shall cause the Target Subsidiaries to, make available to Acquiror information
concerning the Target Properties and Target personnel as Acquiror may
reasonably request.  Neither Target nor
any of the Target Subsidiaries shall be required to provide access to or
disclose information where such access or disclosure would violate or prejudice
the rights of Target’s customers, jeopardize attorney-client privilege or
contravene any Law, fiduciary duty or binding agreement entered into prior to
the date of this Agreement.  Acquiror
shall, and cause its representatives to, take all reasonable efforts to prevent
such access and inspection from interfering with the business operations of
Target and the Target Subsidiaries.

 

(b)           All
information obtained by Acquiror pursuant to this Section 7.03
shall be kept confidential in accordance with the confidentiality agreement,
dated June 7, 2006 (the “Confidentiality Agreement”), between Acquiror and
Target.

 

(c)           After
the Effective Time, Acquiror shall afford to the officers, employees,
accountants, counsel and other representatives of the Liquidating Trust access
during normal business hours to the books and records of the Target Properties
as may reasonably be requested.

 

46

 

7.04.                     No-Shop Clause.

 

(a)           From and after the date of the execution and delivery of
this Agreement by Target until the termination of this Agreement or the
consummation of the Transaction, the Target Group will not, without the prior
written consent of Acquiror or except as otherwise permitted by this Agreement
directly or indirectly: (i) sell, assign, lease, pledge or otherwise
transfer or dispose of, directly or indirectly, all or any portion of the
Target Properties or Target Properties Leases, or any material portion or
amount of equity securities of Target, whether through merger, consolidation,
business combination, asset sale, share exchange or otherwise (and including in
connection with an offer for all or a material portion of Target’s stock or
assets) (each of such actions being an “Acquisition
Proposal”); (ii) solicit
offers for, offer up or seek any Acquisition Proposal; (iii) initiate,
encourage or provide any documents or information to any third party in
connection with, discuss or negotiate with any person regarding any inquires,
proposals or offers relating to any Acquisition Proposal; or
(iv) enter into any agreement or discussions with any party (other than
Acquiror) with respect to any Acquisition Proposal.

 

(b)           Without
limiting the foregoing, it is agreed that any violation of the restrictions set
forth in Section 7.04(a) by any of the Target Group’s employees,
investment bankers, attorneys, accountants and other advisors or
representatives (such employees, investment bankers, attorneys, accountants and
other advisors or representatives, collectively, “Representatives”), shall be a breach of Section 7.04(a) by
Target.  Upon execution of this
Agreement, Target has caused the Target Group and its Representatives to, cease
immediately and caused to be terminated any and all existing discussions or
negotiations with any Persons conducted heretofore with respect to an
Acquisition Proposal.

 

(c)           Target
shall, as promptly as practicable (and in no event later than 24 hours after
receipt thereof), advise Acquiror of any inquiry received by the Target Group
relating to any potential Acquisition Proposal and of the material terms of any
proposal or inquiry, including the identity of the Person and its Affiliates
making the same, that it may receive in respect of any such potential
Acquisition Proposal, or of any information requested from it or of any
negotiations or discussions being sought to be initiated with it, shall furnish
to Acquiror a copy of any such proposal or inquiry, if it is in writing, or a
written summary of any such proposal or inquiry, if it is not in writing, and
shall keep Acquiror fully informed on a prompt basis with respect to any
developments with respect to the foregoing.

 

(d)           Notwithstanding
the provisions of Section 7.04(a), prior to the receipt of the
approval of the transactions contemplated by this Agreement by Target’s
Stockholders, Target may, in response to an unsolicited, bona fide written
Acquisition Proposal from a Person (the “Potential Acquiror”) which the Target Board
determines in good faith, after consultation with a nationally recognized
financial advisor and its outside legal counsel, constitutes a Superior
Proposal (and continues to constitute a Superior Proposal after taking into
account any modifications proposed by Acquiror

 

47

 

during
any five (5) Business Day period referenced below), take the following
actions (but only if and to the extent that the Target Board concludes in good
faith, following the receipt of advice of its outside legal counsel, that the
failure to do so would constitute a breach of its fiduciary obligations under
applicable Law); provided that,
Target has first given Acquiror written notice that states that Target has
received such Superior Proposal and otherwise includes the information required
by Section 7.04(c) (the “Superior Proposal Notice”) and five (5) Business
Days have passed since the receipt of the Superior Proposal Notice by Acquiror:

 

(i)            furnish nonpublic information to the Potential Acquiror, provided that (A) (1) concurrently
with furnishing any such nonpublic information to the Potential Acquiror,
Target gives Acquiror written notice of its intention to furnish nonpublic
information and (2) Target receives from the Potential Acquiror an
executed confidentiality agreement containing customary limitations on the use
and disclosure of all nonpublic written and oral information furnished to the
Potential Acquiror on its behalf, the terms of which are at least as
restrictive as to the Potential Acquiror as the terms contained in the
Confidentiality Agreement are as to Acquiror, and containing customary
standstill provisions and (B) contemporaneously with furnishing any such
nonpublic information to the Potential Acquiror, Target furnishes such
nonpublic information to Acquiror; and

 

(ii)           engage in negotiations with the
Potential Acquiror with respect to the Superior Proposal, provided that concurrently with entering
into negotiations with the Potential Acquiror, it gives Acquiror written notice
of its intention to enter into negotiations with the Potential Acquiror.

 

(e)                                  For a period of
not less than five (5) Business Days after Acquiror’s receipt of each
Superior Proposal Notice, Target shall, if requested by Acquiror, negotiate in
good faith with Acquiror to revise this Agreement so that the Acquisition
Proposal that constituted a Superior Proposal no longer constitutes a Superior
Proposal (a “Former
Superior Proposal”).  The
terms and conditions of this Section 7.04 shall again apply to any
inquiry or proposal made by any Person who withdraws a Superior Proposal or who
made a Former Superior Proposal (after withdrawal or after such time as their
proposal is a Former Superior Proposal).

 

(f)                                   In response to
the receipt of a Superior Proposal that has not been withdrawn and continues to
constitute a Superior Proposal after Target’s compliance with Sections
7.04(b)—(e), the Target Board may withhold or withdraw its recommendation
that the Target Stockholders vote in favor of the approval of the Transaction
and, in the case of a Superior Proposal that is a tender or exchange offer made
directly to the stockholders of Target, may recommend that the Target
Stockholders accept the tender or exchange offer (any of the foregoing actions,
whether by the Target Board or a committee thereof, a “Change in Recommendation”),
if both of the following conditions are met:

 

(i)            the Target Stockholder Meeting has not occurred; and

 

48

 

(ii)           the Target Board has concluded in
good faith, following the receipt of advice of its outside legal counsel, that,
in light of such Superior Proposal, the failure of the Target Board to effect a
Change in Recommendation would result in a breach of its fiduciary obligations
to the Target Stockholders under applicable Law.

 

(g)                                  Notwithstanding anything to the contrary contained in this Agreement, the
obligation of Target to call, give notice of, convene and hold the Target
Stockholder Meeting and to hold a vote of the Target Stockholders on this
Agreement shall not be limited or otherwise affected by the commencement, disclosure,
announcement or submission to it of any Acquisition Proposal (whether or not a
Superior Proposal), or by any Change in Recommendation.

 

7.05.                     Further Action; Reasonable Efforts.

 

(a)                                 Upon the terms and subject to the conditions hereof, each of the parties
hereto shall use its reasonable efforts to take, or cause to be taken, all
appropriate action, and to do, or cause to be done, all things necessary,
proper or advisable under applicable Laws to consummate and make effective the
Merger, including, without limitation, using its reasonable best efforts to
obtain all Applicable Permits, consents, approvals, authorizations,
qualifications and orders of Governmental Authorities and parties to contracts
with Target and the Target Subsidiaries as are necessary for the consummation
of the Merger and to fulfill the conditions to the Closing.  In case, at any time after the Closing, any
further action is necessary or desirable to carry out the purposes of this
Agreement, each of the parties hereto shall use all reasonable efforts to cause
its respective officers, employees and agents to take all such action.

 

(b)                                 The parties
hereto shall cooperate and assist one another in connection with all actions to
be taken pursuant to Section 7.05(a), including the preparation and
making of the filings referred to therein and, if requested, amending or
furnishing additional information thereunder, including, subject to applicable
Law and the Confidentiality Agreement, providing copies of all related
documents to the non-filing party and their advisors prior to filing, and to
the extent practicable none of the parties will file any such document or have
any communication with any Governmental Authority without prior consultation
with the other parties; provided, however,
Acquiror may make any Exchange Act filings with the SEC with prior notice to
Target to the extent possible (but without approval rights).  Each party shall keep the others apprised of
the content and status of any communications with, and communications from, any
Governmental Authority with respect to the Merger.  To the extent practicable, and as permitted
by a Governmental Authority, each party hereto shall permit representatives of
the other party to participate in meetings (whether by telephone or in Person)
with such Governmental Authority.

 

(c)                                  Each of the
parties hereto agrees to cooperate and use its reasonable efforts to defend
through litigation on the merits any Action, including administrative or
judicial Action, asserted by any party in order to avoid the entry of, or to
have vacated, lifted, reversed, terminated or overturned any decree, judgment,

 

49

 

injunction
or other order (whether temporary, preliminary or permanent) that in whole or
in part restricts, delays, prevents or prohibits consummation of the Merger,
including, without limitation, by vigorously pursuing all available avenues of
administrative and judicial appeal.

 

7.06.                     Public Announcements.

 

Acquiror
and Target agree that no public release or announcement concerning the Merger
shall be issued by either party without the prior consent of the other party,
except as such release or announcement may be required by Law or the rules or
regulations of the NYSE in which case the party required to make the release or
announcement shall use its reasonable best efforts to allow the other party
reasonable time to comment on such release or announcement in advance of such
issuance; provided, however, if
such other party fails to respond or comment on such release or announcement
within two (2) Business Days of receipt of a draft of such release or
announcement, the release or announcement shall be deemed approved.

 

7.07.                     Escrow and Indemnification.

 

(a)                                 Escrow Fund.  Within five (5) Business Days after the
Effective Time, the Escrow Shares shall be registered in the name of, and be
deposited with the Share Escrow Agent, such deposit to constitute the escrow
fund (the “Escrow
Fund”) and to be governed by the terms set forth herein
and in the Share Escrow Agreement.  The
Escrow Fund shall consist of the Escrow Shares and shall be available to
compensate Acquiror for Damages pursuant to the indemnification obligations of
Target set forth in Section 7.07(b).

 

(b)                                 Indemnification.

 

(i)            Subject to the limitations set forth
in this Section 7.07, the Target Stockholders will indemnify and
hold harmless Acquiror, Acquiror OP and Merger Subsidiary and their respective
officers, directors, agents and employees, and each Affiliate thereof
(hereinafter referred to individually as an “Indemnified Person” and, collectively,
as “Indemnified Persons”)
from and against any and all losses, costs, damages, liabilities, taxes and
expenses arising from claims, demands, actions, causes of action, including,
without limitation, reasonable legal fees, (collectively, “Damages”) arising out
of (A) any misrepresentation or breach of, or default in connection with,
any of the representations, warranties, covenants and agreements given or made
by the Target Group in this Agreement, the Target Disclosure Letter or any
exhibit, schedule or certificate to, or delivered in connection with, this
Agreement, (B) any of the matters described in Sections 6.02(f) and
6.02(g)(xx) of the Target

 

50

 

Disclosure
Letter, (C) payment obligations under NPI’s or Target’s deferred
compensation plan, pension plan, severance obligations and retirement
obligations including, but not limited to, the Dollenberg Retirement
Obligations, (D) any misrepresentation or breach by NPI under the Exchange
Agreement, (E) any continuing liability in connection with the loans as
more particularly described in Section 6.02(j)(viii) and Section 6.02(k) of
the Target Disclosure Letter but excluding any continuing liability in connection
with the Office Assumed Loans and (F) guarantees signed by Target with
respect to loans relating to the Retail Properties (the “Retail Loan Guarantees”).  The Escrow Fund shall be the security for
this indemnity obligation subject to the limitations in this Agreement.

 

(ii)           Acquiror and Target each acknowledge
that such Damages, if any, would relate to unresolved contingencies existing at
the Effective Time, which if resolved at the Effective Time would have led to a
reduction in the total number of shares of Merger Consideration that Acquiror
would have agreed to issue in connection with the Merger.  Following the Effective Time, the right to
obtain indemnification from the Escrow Fund, pursuant to the indemnification
provisions of this Section 7.07 and the Share Escrow Agreement
shall be Acquiror’s exclusive remedy for any breach by Target hereof or Damages
described in Section 7.07(b)(i); provided,
however, that the foregoing shall not limit liability of any Person
or entity in the case of fraud or any intentional misrepresentation by such
Person or entity.

 

(iii)          Acquiror may not receive any Escrow
Shares from the Escrow Fund unless and until the Claims Notice specifying an
aggregate amount of Damages incurred by Acquiror in excess of Five Hundred Thousand
Dollars ($500,000) (the “Indemnity
Threshold”) have been delivered to the Share Escrow Agent as
provided in Section 7.07(d) and such amount is determined
pursuant to this Section 7.07 to be payable, after which Acquiror
shall receive Escrow Shares for the amount of any Damages in excess of the
Indemnity Threshold.  In determining the
amount of any Damage attributable to a breach, any materiality standard
contained in a representation, warranty or covenant of Target shall be
disregarded.

 

(iv)          The Indemnity Threshold shall not
apply to any Claims Notice (A) regarding the payment of any Transfer
Taxes, (B) arising out of matters described in Sections 6.02(f) and
6.02(g)(xx) of the Target Disclosure Letter whereby Acquiror
sustains actual Damages not reimbursed by insurance, (C) relating to
payment obligations under NPI’s or Target’s deferred compensation plan, pension
plan, severance obligations and retirement obligations including, but not
limited to, the Dollenberg Retirement Obligations, (D) any misrepresentation
or breach by NPI under the Exchange Agreement, (E) arising out of any
continuing liability in connection with the loans as more particularly
described in Section 6.02(j)(viii) and Section 6.02(k) of
the Target Disclosure Letter but excluding any continuing liability in
connection with the Office Assumed Loans or (F) regarding the Retail Loan
Guarantees.

 

(c)                                  Escrow Period.  The escrow period (the “Escrow Period”)
shall terminate at 11:59 p.m. Eastern Standard Time on the thirty-six (36)
month anniversary of the Closing Date; provided,
however, that a portion of the Escrow Fund, which is necessary to
satisfy any unpaid fees due to the Share Escrow Agent and any unsatisfied
claims specified in any Claims Notice theretofore delivered to the Share Escrow
Agent prior to termination of the Escrow Period with respect to facts and
circumstances existing prior to expiration of the Escrow Period, shall remain
in the Escrow Fund until such claims have been resolved and such fees have been
paid.  Promptly after the Effective

 

51

 

Time, Acquiror shall deliver to the Share Escrow
Agent a certificate specifying the Closing Date.

 

(d)                                 Claims Upon Escrow Fund.

 

(i)                                     Upon receipt by the Share Escrow Agent on or before the last day of the
Escrow Period of a certificate signed by any officer of Acquiror (a “Claims Notice”):

 

(A)          stating that Damages exist in an
aggregate amount greater than the Indemnity Threshold; and

 

(B)          specifying in reasonable detail the
individual items included in the amount of Damages in such claim, the date each
such item was paid, properly accrued or arose and the nature of the
misrepresentation, breach of warranty or claim to which such item is related,

 

the
Share Escrow Agent shall set aside Escrow Shares having a value equal to the
amount of Damages in excess of the Indemnity Threshold.

 

(ii)                                  Upon the
earliest of:  (A) receipt of written
authorization from the Stockholders’ Agent or from the Stockholders’ Agent
jointly with Acquiror to make such delivery, (B) receipt of written notice
of a final decision in arbitration of the claim, or (C) in the event the
claim set forth in the Claims Notice is uncontested by the Stockholders’ Agent
as of the close of business on the next Business Day following the fifteenth
(15th) day following receipt by the Share Escrow Agent of the Claims Notice; on
the next Business Day, the Share Escrow Agent shall deliver the Escrow Shares
or the portion of Escrow Shares set aside pursuant to Section 7.07(d)(i) to
Acquiror.

 

(iii)                               For the purpose
of compensating Acquiror for its Damages pursuant to this Agreement, the Escrow
Shares in the Escrow Fund shall be valued at the last reported sale price of an
Acquiror Common Share on the NYSE on the Business Day prior to the date such
claim is paid.

 

(e)                                  Objections to
Claims.  At the time of delivery of any
Claims Notice to the Share Escrow Agent, a duplicate copy of such Claims Notice
shall be delivered to the Stockholders’ Agent and for a period of fifteen (15)
days after such delivery to the Share Escrow Agent of such Claims Notice, the
Share Escrow Agent shall make no delivery of Escrow Shares pursuant to Section 7.07
unless and until the Share Escrow Agent shall have received written
authorization from the Stockholders’ Agent to make such delivery.  After the expiration of such fifteen (15) day
period, the Share Escrow Agent shall make delivery of the Escrow Shares in
accordance with Section 7.07, provided,
that no such payment or delivery may be made if the Stockholders’ Agent shall
object in a written statement to the claim made in the Claims Notice, and such
statement shall have been delivered to the Share Escrow Agent and to Acquiror
prior to the expiration of such fifteen (15) day period.

 

52

 

(f)                                   Resolution of Conflicts; Arbitration.

 

(i)            In case the Stockholders’ Agent shall so object in
writing to any claim or claims by Acquiror made in any Claims Notice, Acquiror
shall have fifteen (15) days after receipt by the Share Escrow Agent of an
objection by the Stockholders’ Agent to respond in a written statement to the
objection of the Stockholders’ Agent.  If
after such fifteen (15) day period there remains a dispute as to any claims,
the Stockholders’ Agent and Acquiror shall attempt in good faith for thirty
(30) days to agree upon the rights of the respective parties with respect to
each of such claims.  If the Stockholders’
Agent and Acquiror should so agree, a memorandum setting forth such agreement
shall be prepared and signed by both parties and shall be furnished to the
Share Escrow Agent.  The Share Escrow
Agent shall be entitled to rely on any such memorandum and shall distribute the
Escrow Shares from the Escrow Fund in accordance with the terms thereof.

 

(ii)           If
no such agreement can be reached after good faith negotiation, either Acquiror
or the Stockholders’ Agent may, by written notice to the other, demand
arbitration of the matter unless the amount of the damage or loss is at issue
in pending litigation with a third party, in which event arbitration shall not
be commenced until such amount is ascertained or both parties agree to
arbitration; and in either such event the matter shall be settled by
arbitration conducted by three arbitrators. 
Within fifteen (15) days after such written notice is sent, Acquiror and
the Stockholders’ Agent shall each select one arbitrator, and the two
arbitrators so selected shall select a third arbitrator.  The decision of the arbitrators as to the
validity and amount of any claim in such Claims Notice shall be binding and
conclusive upon the parties to this Agreement, and notwithstanding anything in
this Section 7.07, the Share Escrow Agent shall be entitled to act
in accordance with such decision and make or withhold payments out of the Escrow
Fund in accordance therewith.

 

(iii)          Judgment
upon any award rendered by the arbitrators may be entered in any court having
jurisdiction.  Any such arbitration shall
be held in Howard County, Maryland under the commercial rules then in
effect of the American Arbitration Association and applying the laws of the
State of Maryland.  Acquiror, on the one
hand, and Target Stockholders, on the other hand, shall each bear its/their own
expenses (including attorneys’ fees and expenses) incurred in connection with
any such arbitration.  In the event the
arbitrator or arbitrators find in favor of Acquiror as to the claim in dispute,
all fees, costs, and the reasonable expenses of legal counsel incurred by
Acquiror will be charged against the Escrow Fund in addition to the amount of
the disputed claim.  Similarly, in the
event the arbitrator or arbitrators find in favor of Target as to the claim in
dispute, all fees, costs, and the reasonable expenses of legal counsel incurred
by Target will be paid by Acquiror.  The
fees and expenses of each arbitrator and the administrative fee of the American
Arbitration Association shall be allocated by the arbitrator or arbitrators, as
the case may be (or, if not so allocated, shall be borne equally by Acquiror,
on the one hand, and Target Stockholders, out of the Escrow Fund, on the other
hand).

 

53

 

(g)                                  Stockholders’ Agent

 

(i)            The Liquidating Trust shall be constituted and appointed
as the Stockholders’ Agent for and on behalf of the Target Stockholders to
execute and deliver the Share Escrow Agreement and for all other purposes
thereunder, to give and receive notices and communications, to authorize
delivery of Escrow Shares from the Escrow Fund in satisfaction of claims by
Acquiror, to object to such deliveries, to agree to, negotiate, enter into
settlements and compromises of, and demand arbitration and comply with orders
of courts and awards of arbitrators with respect to such claims, and to take
all actions necessary or appropriate in the judgment of the Stockholders’ Agent
for the accomplishment of the foregoing. 
Such agency may be changed by the holders of a majority in interest of
the Escrow Fund from time to time upon not less than ten (10) days’ prior
written notice to all of Target Stockholders and to Acquiror.  No bond shall be required of the Stockholders’
Agent, and the Stockholders’ Agent shall receive no compensation for his
services.  Notices or communications to
or from the Stockholders’ Agent shall constitute notice to or from each of
Target Stockholders.

 

(ii)           The Stockholders’ Agent shall not be
liable for any act done or omitted hereunder as Stockholders’ Agent while
acting in good faith, and any act done or omitted pursuant to the advice of
counsel shall be conclusive evidence of such good faith.  Target Stockholders shall severally indemnify
the Stockholders’ Agent and hold him harmless against any loss, liability or
expense incurred without bad faith on the part of the Stockholders’ Agent and
arising out of or in connection with the acceptance or administration of his
duties hereunder.

 

(h)                                 Actions of the Stockholders’ Agent.  A decision, act, consent or instruction of
the Stockholders’ Agent shall constitute a decision of all of Target
Stockholders and shall be final, binding and conclusive upon each and every
Target Stockholder, and the Share Escrow Agent and Acquiror may rely upon any
decision, act, consent or instruction of the Stockholders’ Agent as being the
decision, act, consent or instruction of each and every Target
Stockholder.  The Share Escrow Agent and
Acquiror are hereby relieved from any liability to any person for any acts done
by them in accordance with such decision, act, consent or instruction of the
Stockholders’ Agent.

 

(i)                                     Third-Party
Claims.  In the event that Acquiror
becomes aware of a third-party claim which Acquiror believes may result in a
demand against the Escrow Fund, Acquiror shall promptly notify the Stockholders’
Agent of such claim, and the Stockholders’ Agent and Target Stockholders shall
be entitled, at their expense, to participate in any defense of such
claim.  Acquiror shall have the right in its
sole discretion to settle any such claim; provided,
however, that Acquiror may not effect the settlement of any such
claim without the consent of the Stockholders’ Agent, which consent shall not
be unreasonably withheld.  In the event
that the Stockholders’ Agent has consented to any such settlement, the
Stockholders’ Agent shall have no power or authority to object under Section
7.07(e) or any other provision of this Section 7.07 to any claim by
Acquiror against the Escrow Fund for indemnity in the amount of such
settlement.

 

54

 

(j)            The provisions of this Section
7.07 shall not be terminated or modified in such a manner as to adversely
affect any indemnitee to whom this Section 7.07 applies without the
consent of such affected indemnitee and are intended to be for the benefit of,
and will be enforceable by, each indemnified party, his or her heirs and his or
her legal representatives.

 

(k)           Additional Escrow Shares. The Additional Escrow Shares shall be held by
the Share Escrow Agent pursuant to the terms of the Additional Share Escrow
Agreement.

 

7.08.                     Intentionally Deleted.

 

7.09.                     Transfer Taxes.

 

Acquiror
shall be liable for all Transfer Taxes (including any such taxes imposed
post-Closing) applicable to any transfers relating to the properties set forth
in Section 7.09(a) of the Target Disclosure Letter.  Target and Acquiror shall each be liable for
one-half of all Transfer Taxes (including any such taxes imposed
post-Closing) applicable to any transfers relating to the properties set forth
in Section 7.09(b) of the Target Disclosure Letter.  Target shall be liable for all Transfer
Taxes (including any such taxes imposed post-Closing) applicable to any
transfers relating to the properties set forth in Section 7.09(c) of the
Target Disclosure Letter.  Target and
Acquiror shall each be liable for one-half of all Transfer
Taxes (including any such taxes imposed post-Closing) applicable to any
transfers effectuated pursuant to the transactions contemplated in the
PSA.  Notwithstanding the foregoing, in
no event shall liability under this Section 7.09 extend to any transfers
taking place after the Effective Time.

 

7.10.                     Additional Acknowledgement #2.  Upon
the closing of the Retail Transaction, the Liquidating Trust shall deliver to
the Surviving Entity a copy of the Additional Acknowledgement #2 by P. Douglas
Dollenberg in the form attached hereto as Exhibit P.

 

7.11.                     Lender’s Approval.

 

(a)           The current loan documents evidencing the Office Assumed
Loans are listed in Section 7.11 of the Target Disclosure Letter (the “Loan Documents”).

 

(b)           Target and Acquiror, with due diligence and in good faith,
shall cooperate to attempt to obtain for the benefit of Acquiror, Acquiror OP
and Merger Subsidiary legally binding letters or agreements, effective through
the Closing Date, from the lenders who hold Office Assumed Loans and, if
required, any nationally recognized rating agencies (if any) required by such
lenders (the “Rating Agencies”), approving the transactions contemplated by this Agreement, to the
extent applicable to the Office Assumed Loans, setting forth the amount of
principal and interest outstanding as of the Closing Date, stating that there
has not been, and there does not currently exist, any default under any of the
Loan Documents and thereafter with due diligence and in good faith shall
cooperate to consummate the closing of the Office Assumed Loans (each, a

 

55

 

“Lender’s Approval”).  All documentation to be signed
by Target Group, Acquiror or Acquiror OP in connection with any Lender’s
Approval shall be subject to Acquiror’s prior written consent, not to be
unreasonably withheld.  Target shall pay
(i) any assumption fee under the Loan Documents, (ii) the consent fee charged
by the servicer and lenders, (iii) the legal fees of the servicer and lenders
in connection with Lender’s Approval, (iv) any and all other fees and costs of
the servicer, the lenders, and the Rating Agencies relating to Lender’s
Approval including all structural, environmental, inspection, administrative,
flood determination, insurance review and credit review fees of the servicer,
the lenders, and the Rating Agencies relating to Lender’s Approval or otherwise
relating to the Office Assumed Loans (the “Assumption Fees”).  On the Closing Date if the
Transaction is consummated, Acquiror shall reimburse Target for the Assumption
Fees.

 

(c)           Acquiror shall use its commercially reasonable efforts to
obtain a release of NPI and Nottingham Investment Company from guarantees
and/or indemnities for obligations accruing under the Office Assumed Loans from
and after the date of assumption of the Office Assumed Loans.

 

7.12.                     Termination of Management Agreements.

 

Prior
to the Effective Time, Target shall terminate those property management
agreements listed in Section 7.12 of the Target Disclosure Letter.

 

7.13.                     Short Term Loan.

 

No
later than one (1) Business Day prior to the Closing Date, Target shall obtain
the Short Term Loan and will sign the Short Term Loan Documents as may be
reasonably requested by Wachovia Bank, N.A. or Acquiror.  The Short Term Loan Documents shall be
subject to Acquiror’s prior written approval, which may be withheld in its
reasonable discretion.  The proceeds of
the Short Term Loan will be used to repay in full the Existing Office
Indebtedness and certain other obligations of Target.  All liens securing the Existing Office
Indebtedness shall be released at the time of the closing of the Short Term
Loan.  The Short Term Loan may be secured
by a lien on the ownership interests of Target or Target Subsidiaries, provided that such lien is released upon
the guaranty by Acquiror OP of the Short Term Loan.

 

7.14.                     Tenant Improvements.

 

Target
shall use commercially reasonable efforts to complete all tenant improvement
work with respect to the Pre-LOI Leases required to be performed at the
commencement of the lease term (the “Pre-LOI TI Work”) prior to the Effective
Time.  If such work shall not be
completed prior to the Effective Time, Target will enter into contracts with
third parties, subject to Acquiror’s prior written approval, to complete such
work.  Target will enter into contracts
with third parties, subject to Acquiror’s prior written approval, for all
tenant improvements with respect to Target Properties Leases which are not
Pre-LOI Leases.

 

56

 

7.15.                     Sewer System Escrow.

 

Upon
the completion of all work to the Sewer System (as defined in the Acquisition
Agreement), in the event any unspent funds remain in the escrow under such
Acquisition Agreement (which agreement calls for the such remaining funds to be
equally split between Honeygo Run Reclamation Center, Inc. and Target),
Acquiror shall transmit all of the funds it receives from such escrow to the
Liquidating Trust promptly upon receipt of such funds.  Except as set forth in Section 8.04(viii)
hereof, Acquiror shall not be responsible for the reimbursement to Target, any
Target Subsidiary or the Liquidating Trust of any money spent as of the Closing
Date on the Sewer System.

 

ARTICLE VIII.

ADDITIONAL AGREEMENTS

 

8.01.                     Inspection of the Target Properties.

 

(a)           Right of Inspection.  Acquiror shall have the right, at its own
risk, cost and expense, at any time prior to Closing during normal business
hours (i.e. Monday through Friday from 9:00 a.m. to 5:00 p.m. - federal
holidays excepted) upon not less than forty-eight (48) hours prior notice to
Target, and subject to the approval of the tenants under the Target Properties
Leases with respect to any entry into the leased premises, to enter, or cause
its agents or representatives to enter, upon any of the Target Properties for
the purpose of making surveys, tests, test borings, inspections, investigations
and architectural, structural, economic, environmental and other studies of any
of the Target Properties as Acquiror may deem desirable.  Target agrees that it shall reasonably
cooperate with Acquiror in connection with any other information regarding the
Target Properties reasonably requested by Acquiror and will provide or make
available such information during the Inspection Period and at all periods
thereafter through the Closing to the extent in Target’s possession.  Acquiror shall, at Acquiror’s sole cost and
expense, promptly and fully restore any damage or destruction to any of the
Target Properties occurring as a result of any act or omission of Acquiror by
reason of such tests, studies or investigations.  Acquiror shall indemnify, defend and hold
Target harmless from and against all loss, cost, damage or claim (including
attorneys’ fees reasonably incurred, court costs and costs of investigation)
arising out of or resulting from Acquiror’s exercise of the right and privilege
granted to Acquiror contained in this Section 8.01, and the undertakings
contained in this Section 8.01 shall survive Closing or prior
termination of this Agreement.

 

(b)           Inspection Period.  Acquiror shall have the period commencing on
the date hereof and ending at 5:00 p.m. Eastern Time on December 21, 2006 (the “Inspection Period”)
to inspect the Target Properties and to conduct such tests and investigations
as it deems advisable in order to determine that the Target Properties can be
used for Acquiror’s intended use.  If,
during the Inspection Period, Acquiror is not reasonably satisfied with its
findings thereof or for any other reason whatsoever, Acquiror shall notify
Target in writing (prior to the expiration of the Inspection Period) in which
event:

 

57

 

(i)            the Deposit shall be returned to Acquiror; and

 

(ii)           this
Agreement shall be terminated in accordance with the provisions of Article X
hereof.

 

It
is expressly recognized and agreed by the parties that following expiration of
the Inspection Period, Acquiror shall be deemed to have waived its termination
right under this Section 8.01.  If
this Agreement is terminated by Target pursuant to Section 10.01(d)(i),
the Cash Escrow Agent shall pay the Deposit to Target as Target’s final
liquidated damages (it being understood that Target’s actual damages in the
event of such default are difficult to ascertain and that such proceeds
represent the parties’ best current estimate of such damages).  Conversely, if this Agreement is terminated
for any other reason whatsoever, the Deposit shall be promptly paid by the Cash
Escrow Agent to Acquiror.

 

8.02.       Prepayment of Indebtedness.

 

After
obtaining Acquiror’s prior written consent, Target shall prepay the Existing
Office Indebtedness listed in Section 8.02 of the Target Disclosure
Letter prior to Closing, using a portion of the proceeds of the Short Term
Loan, which Existing Office Indebtedness is secured by the properties listed in
Section 8.02 of the Target Disclosure Letter, and in connection
therewith shall pay all accrued interest, prepayment penalties and other
charges related thereto or in connection therewith.

 

8.03.       Acquisition of Joint Venture
Interests; Disposal of Properties.

 

Prior
to or concurrently with the Closing, Target shall have taken all actions
necessary to (i) acquire the outstanding equity interests in the Target Joint
Ventures not owned by Target and (ii) dispose of the real estate
properties and related entities owned by Target which hold assets other than
the Target Properties or the Retail Properties.

 

8.04.       Prorations and Adjustments.

 

This
Section 8.04 applies to the Merger Closing Properties.  At Closing, accounts payable, rents (to the
extent prepaid), all real and personal property taxes, water rents, sewer
charges, electric and other utility charges, fuel if any, operating expenses,
wages, any special assessments, if any, and other similar charges affecting the
Merger Closing Properties and all utility charges, if any, shall be adjusted
and prorated as of midnight of the day prior to the Closing Date (the “Closing Adjustment Time”).  All other charges or fees customarily
prorated and adjusted in similar transactions shall be adjusted as of the
Closing Adjustment Time.  All rent (other
than prepaid rent) received from the tenants of the Merger Closing Properties
shall be adjusted (prorated) as of the Closing Adjustment Time and paid in
accordance with the following provisions, together with the following
adjustments:

 

(i)            Following receipt of the monthly installment of basic
rent under any of the Merger Closing Properties Leases attributable to the
month in which the

 

58

 

Closing occurs, such installment shall be adjusted
as of the Closing Adjustment Time, with the Target Stockholders being entitled to
the portion thereof attributable to the period of the month immediately
preceding the Closing Date and Acquiror entitled to the balance of such monthly
installment.  Acquiror shall use
commercially reasonable efforts to seek to collect unpaid rents and other
amounts attributable to the period prior to the Closing Adjustment Time.

 

(ii)           Acquiror shall be entitled to all
basic rent and other sums due under any of the Merger Closing Properties Leases
as of the Closing Adjustment Time with the exception of (a) common area
maintenance (CAM) and real estate tax reimbursements attributable to periods
prior to the Closing Adjustment Time; (b) the basic rent for the Closing month
to which an Acquiror is entitled under (i) above, and (c) rental
arrearages for periods preceding the Closing Adjustment Time, and (d) rents
received from tenants prior to the Closing Adjustment Time which relate to
periods prior to the Closing Adjustment Time. 
Annual CAM and tax reimbursements, which are payable by the tenant on an
annual basis after the conclusion of each calendar year, will be adjusted as of
the Closing Adjustment Time, with the Target Stockholders being entitled to the
portion thereof attributable to the period of the year immediately preceding
the Closing Adjustment Time and the Acquiror being entitled to the balance of
such payment.  Additionally, any tenant
payments for special services which were specifically billed by Target or one
of its Affiliates prior to the Closing Adjustment Time shall be owed to the
Target Stockholders.  All CAM payments
from tenants received by Target or Target Subsidiaries which relate to periods
after the Closing Adjustment Time shall be credited to Acquiror at Closing.

 

(iii)          All
security deposits under the Merger Closing Properties Leases (excluding letters
of credit posted as security deposits as listed in Section 8.04(iii) of
the Target Disclosure Letter) and rents received by Target and Target
Subsidiaries which relate to periods after the Closing Adjustment Time shall be
credited to Acquiror at Closing.  Letters
of credit posted as security deposits as listed in Section 8.04(iii) of
the Target Disclosure Letter shall be assigned to Acquiror at Closing.

 

(iv)          All
Leasing Commissions and tenant improvements with respect to the Target Properties
Leases signed after September 6, 2006 shall be assumed by Acquiror.  All Pre-LOI Leasing Commissions and Pre-LOI
TI Work shall be the obligation of the Target. 
Any such unpaid amounts with regard to the Pre-LOI Leases as of the
Closing Date, together with the estimated cost to complete the Pre-LOI TI Work
after the Closing, shall be credited to Acquiror at Closing.  To the extent Target has paid the Leasing
Commissions and tenant improvements for leases signed after September 6, 2006,
Target Stockholders shall receive a credit at Closing.

 

(v)           Acquiror
will be credited at Closing for an amount equal to any casualty insurance
deductibles and uninsured losses relating to casualties which may have occurred
at the Merger Closing Properties prior to the Closing.

 

59

 

(vi)          If
Acquiror collects any unpaid or delinquent rents relating to the Merger Closing
Properties after the Closing Adjustment Time, Acquiror shall deliver to the
Liquidating Trust the rent to which the Liquidating Trust is entitled relating
to the period prior to the Closing Adjustment Time.  All rents relating to the Merger Closing
Properties received by Acquiror after the Closing Adjustment Time shall be
applied first to current and then delinquent rent in the inverse order of
maturity.

 

(vii)         An
amount equal to the Retained LC Amount shall be credited to Acquiror at Closing
pursuant to Section 8.08.

 

(viii)        Acquiror
shall credit to Target Stockholders at Closing any money spent by Target with
respect to the Sewer System (as such term is defined in the Acquisition
Agreement) on or after September 6, 2006.

 

(ix)          Intentionally
Deleted.

 

(x)           If
there are any liens or encumbrances applicable to Target Properties other than
Permitted Liens, as of Closing, the amount to discharge such liens and
encumbrances shall be credited to Acquiror at Closing.

 

(xi)          If
there shall be a breach of any of the representations, warranties, covenants or
agreements made by Target herein and Target fails to cure such breach by the
Outside Date, or if there shall be any outstanding liabilities or obligations
of Target, Target Subsidiaries, NPI Exchange Entities or NPI Entities as of the
Effective Time other than the Office Assumed Loans, the Short Term Loan, the
Scheduled Contracts and the Target Properties Leases, the amount of the
aggregate Damages resulting from such breach or such outstanding liabilities or
obligations in excess of Two Hundred Fifty Thousand Dollars ($250,000) shall be
credited to Acquiror at Closing.

 

(xii)         The
fees payable to the Share Escrow Agent shall be equally split by Target
Stockholders and Acquiror and paid at Closing.

 

(xiii)        Any
unpaid amounts due by Target as of the Effective Time as described in Section
6.02(i)(ii) of the Target Disclosure Letter shall be credited to Acquiror
at Closing.  Any refund of prior property
taxes owed to Target as of the Effective Time (net of any attorneys’ fees),
pursuant to a successful appeal, shall be credited to Target Stockholders at
Closing.

 

(xiv)        Any
costs to rectify overstressed joints pursuant to, and in accordance with,
paragraph three of Section 6.02(g)(iv) of the Target Disclosure Letter
shall be credited to Acquiror at Closing, to the extent such costs were not
paid by Target prior to Closing.

 

All
adjustment items (collectively, the “Closing Adjustments”) shall be resolved by
the parties in good faith at least five (5) Business Days prior to the Closing
Date.  To the extent that the Closing
Adjustments result in a net payment due to Target Stockholders, immediately
prior to the Effective Time, the Merger Consideration shall be increased as

 

60

 

set
forth in Section 4.01.  To the
extent that the Closing Adjustments result in a net payment due by the Target
Stockholders, immediately prior to the Effective Time, the Merger Consideration
shall be decreased as set forth in Section 4.01.  The net payment either due to or due by the
Target Stockholders is referred to as the “Closing Adjustment Amount”.

 

8.05.       Articles Supplementary.

 

Acquiror
shall take all necessary actions to approve and file with the SDAT the Articles
Supplementary prior to the Effective Time.

 

8.06.       Intellectual Property.

 

The
parties hereto agree that the Target Stockholders retain the exclusive rights
to use of the word “Nottingham” except that Acquiror will be granted a license
to use the names “Nottingham Ridge,” “Nottingham Centre” and “Nottingham Center”
with respect to those properties, in the form attached hereto as Exhibit E
(the “License Agreement”).

 

8.07.       COBRA Agreements.

 

On
and after the Effective Time, Acquiror shall provide applicable notices and
continuing health coverage that satisfies COBRA to Ronald Heagy, Bruce Campbell
III,  John Auer and Deborah Sellmayer (and members of their family), to
individuals who are within their COBRA election period as of the Effective
Time, and to employees of NPI (and members of their family) terminated in
connection with the Retail Transaction but only with respect to the NPI Group
Health Plan and only if such Retail Transaction is consummated within sixty
(60) days of the Closing hereunder. 
Acquiror’s obligation, however, does not include the assumption of any
other liability with respect to NPI’s employee benefit plans and does not
extend to any other obligation or liability under COBRA.  NPI shall indemnify Acquiror, Acquiror OP and
Merger Subsidiary with respect to any such non-assumed obligations and
liabilities, pursuant to the agreement described in Section 9.05(f) of this
Agreement.

 

8.08.       Certain Agreements.

 

As
of the Effective Time, Acquiror shall assume the obligations of Target or its
Affiliates under each of the public works agreements, utility
agreements and permits relating to the Target Properties Escrow LCs and
the Target Properties LCs.   At the Closing, Acquiror shall receive a
credit against the Merger Consideration equal to the sum of the amount
outstanding under the Target Properties Escrow LCs as of the Effective Time
(the “Retained LC Amount”).  Acquiror OP shall use its commercially
reasonable efforts to arrange for the Target Properties Escrow LCs to be
released or terminated once the work which is secured by the Target Properties
Escrow LCs shall have been completed (the “Outstanding Work”).  Target will use its commercially reasonable
efforts to complete all Outstanding Work prior to Closing.  To the extent that any such Outstanding Work
is not completed prior to Closing, Acquiror shall use its commercially
reasonable efforts to complete such Outstanding Work.  At any time and

 

61

 

from
time to time as a Target Properties Escrow LC is terminated or released,
Acquiror will pay to the Liquidating Trust the amount of the outstanding
balance of such Target Properties Escrow LC less the documented amount paid by
Acquiror or Acquiror OP to complete the Outstanding Work or to correct any
defective Outstanding Work related to such Target Properties Escrow LC.

 

8.09.                     Reciprocal Release.

 

Prior
to the Closing, Target and NPI will enter into the Reciprocal Release.

 

8.10.                     Lockbox.

 

Prior
to Closing, Target shall close its lockbox that was previously established for
the receipt of rents attributable to the Target Properties.

 

8.11.                     Final Tax Returns.

 

Target
shall prepare its final income tax return at its own expense subject to
Acquiror’s prior written approval.

 

8.12.                     Insurance Proceeds.

 

All
insurance proceeds with respect to the Target Properties, regardless of the
amount, shall remain the property of Target and Target Subsidiaries.  Thus, Target Stockholders shall not be
entitled to any such insurance proceeds in the event of a casualty at the
Target Properties or a claim that arose with respect to the Target Properties.

 

8.13.                     Satisfaction of Dollenberg Retirement
Obligations.

 

Prior
to the Closing, NPI and Target will establish a trust to which they shall pay
the funds due to P. Douglas Dollenberg to satisfy the Dollenberg Retirement
Obligations.

 

ARTICLE IX.

CONDITIONS TO CONSUMMATION OF THE TRANSACTION AND CLOSING

DELIVERIES

 

9.01.                     Conditions to the Obligations of Each Party.

 

The
obligations of each party to effect the Merger shall be subject to the
satisfaction, at or prior to the Closing, of the following conditions:

 

(a)           Target Stockholder Approval.  This Agreement and the Transaction shall have
been approved and adopted by the requisite affirmative vote of the Target
Stockholders in accordance with the MGCL and the Target Charter.

 

62

 

(b)           No Order.  No
Governmental Authority in the United States shall have enacted, issued,
promulgated, enforced or entered any Law (whether temporary, preliminary or
permanent) which is then in effect and has the effect of making the Transaction
illegal or otherwise restricting, preventing or prohibiting consummation of the
Transaction.

 

(c)           Governmental Approvals.  All required approvals of Governmental
Authorities, if any, shall have been obtained.

 

(d)           Lender’s Approval. 
All required Lender’s Approval of the Target Group, if any, shall have
been obtained.

 

9.02.                     Conditions to the Obligations of Acquiror,
Acquiror OP and Merger Subsidiary.

 

The
obligations of Acquiror and Merger Subsidiary to consummate the Transaction are
subject to the satisfaction or waiver (where permissible) of the following additional
conditions:

 

(a)           Representations and Warranties.  The representations and warranties of Target
in this Agreement that (i) are not made as of a specific date shall be true and
correct as of the date of this Agreement and as of the Closing, as though made
on and as of the Closing, and (ii) are made as of a specific date shall be true
and correct as of such date, in each case, except where the failure of all
representations or warranties to be true and correct in the aggregate is not
reasonably likely to result in a Target Material Adverse Effect.  Notwithstanding the foregoing, in determining
whether a cumulative Target Material Adverse Effect has occurred at Closing for
the purposes of this Section 9.02(a), any limitation as to materiality
or Target Material Adverse Effect in a representation or warranty shall be
disregarded.

 

(b)           Agreements and Covenants.  Target shall have delivered all of the items
listed in Section 9.04, and otherwise have performed, in all material
respects, all obligations and complied with, in all material respects, all
agreements and covenants to be performed or complied with by it under this
Agreement on or prior to the Closing.

 

(c)           Material Adverse Effect.  Since the date of this Agreement, there shall
have occurred no change, event or circumstance which, individually, or in the
aggregate, is reasonably likely to result in a Target Material Adverse Effect.

 

(d)           Existing Indebtedness.  All of the Existing Office Indebtedness shall
have been repaid and the only indebtedness of Target and Target Subsidiaries as
of the Effective Time shall be the Assumed Loans and the Short Term Loan, the
only indebtedness of the Retail Entities as of the Effective Time shall be the
Existing Retail Indebtedness, and the amounts due under the Existing Retail
Indebtedness, Short Term Loan and Assumed Loans shall not exceed $129,648,266.

 

63

 

(e)           Officer’s Certificate.  Target shall have delivered to Acquiror a
certificate, dated the date of the Closing, signed by the President or any Vice
President of Target, certifying as to the satisfaction of the conditions
specified in this Section 9.02, and including as an exhibit a
Target Disclosure Letter updated as of the Closing Date.

 

(f)            Tenant Estoppels.  At least one (1) Business Day prior to
the Closing Date, Target shall have delivered to Acquiror the tenant estoppel
certificates in the form attached hereto as Exhibit J executed by
those tenants listed in Section 9.02(f) of the Target
Disclosure Letter, free from material adverse disclosures not previously
disclosed to Acquiror.

 

(g)           Office Assumed Loan Documents.  The Office Assumed Loan Documents shall have
been fully executed and delivered to Acquiror.

 

(h)           Corporate Dissolutions.  Prior to the Effective Time, Target shall
have dissolved the corporations listed in Section 9.02(h) of
the Target Disclosure Letter.

 

(i)              Stock Distribution.  Prior to the Effective Time, Target shall
have caused all of the outstanding stock in each of NVI Communities, Inc.
and Village Ventures, Inc. to be distributed to the Liquidating Trust.

 

(j)            Assignment of Insurance Loans.  Prior to the Effective Time, Target shall
have transferred all of its rights and obligations relating to the officers
life insurance policies and loans as listed in Section 9.02(j) of
the Target Disclosure Letter to the Liquidating Trust.

 

9.03.                     Conditions to the Obligations of Target.

 

The
obligations of Target to consummate the Merger are subject to the satisfaction
or waiver (where permissible) of the following additional conditions:

 

(a)           Representations and Warranties.  The representations and warranties of
Acquiror, Acquiror OP and Merger Subsidiary in this Agreement that (i) are
not made as of a specific date shall be true and correct as of the date of this
Agreement and as of the Closing, as though made on and as of the Closing, and (ii) are
made as of a specific date shall be true and correct as of such date, in each
case, except where the failure of such representations or warranties to be true
and correct in the aggregate is not reasonably likely to result in an Acquiror
Material Adverse Effect.  Notwithstanding
the foregoing, in determining whether a cumulative Acquiror Material Adverse
Effect has occurred at Closing for the purposes of this Section 9.03(a),
any limitation as to materiality or Acquiror Material Adverse Effect in a
representation or warranty shall be disregarded.

 

(b)           Agreements and Covenants.  Acquiror, Acquiror OP and Merger Subsidiary
shall have performed, in all material respects, all obligations or complied
with, in all material respects, all agreements and covenants to be performed or
complied with by them under this Agreement on or prior to the Closing.

 

64

 

(c)           Intentionally Deleted.

 

(d)           Articles Supplementary.  The Articles Supplementary shall have been
approved by the trustees of Acquiror, filed with and accepted by the SDAT and
be in full force and effect.

 

(e)           Material Adverse Effect.  Since the date of this Agreement, there shall
have occurred no change, event or circumstance which, individually, or in the
aggregate, is reasonably likely to result in an Acquiror Material Adverse
Effect.

 

(f)            Officer Certificate.  Acquiror shall have delivered to Target a
certificate, dated the date of the Closing, signed by the President or any Vice
President of Acquiror, certifying as to the satisfaction of the conditions specified
in this Section 9.03.

 

9.04.                     Deliveries by Target.  At
Closing, Target shall execute and deliver or cause to be delivered to Acquiror:

 

(a)           Notices to Tenants substantially in the form attached
hereto as Exhibit F, dated as of the Closing Date, executed by
Target, and complying with applicable statutes in order to relieve Target of
liability for any security deposits (provided the security deposits are paid to
Acquiror), directing tenants to pay all rent due and owing under the Target
Properties Leases to Acquiror or Acquiror’s designated agent;

 

(b)           originals of the Target Properties Leases and copies of
lease files at the Target Properties, and originals of any maintenance and
service contracts that are to be assumed, to the extent any such documents are
in the possession of Target or any Target Subsidiary;

 

(c)           an affidavit that Target is not a “foreign person” in the
form attached as Exhibit G;

 

(d)           maintenance records, equipment manuals and plans and
specifications for the Target Properties, to the extent any such documents are
in the possession of Target or any Target Subsidiary;

 

(e)           keys or combinations to all locks at the Target
Properties, to the extent any such keys or combinations are in the possession
of Target or any Target Subsidiary;

 

(f)            the certificate described in Section 9.02(e);

 

(g)           legal opinions of Gordon, Feinblatt, Rothman, Hoffberger &
Hollander, LLC, dated as of the Closing Date and in the form attached hereto as
Exhibit H;

 

65

 

(h)           the receipt or release from Wachovia
Capital Markets, LLC as described in Section 6.02(n);

 

(i)            an executed settlement sheet;

 

(j)            affidavits required by the Anchor
Title Company in the form attached hereto as Exhibit I;

 

(k)           cross-release and indemnity between
NPI, Acquiror and Target in the form of Exhibit K attached hereto
(the “Reciprocal Release”);

 

(l)            release of guaranties executed by
Target on properties that are not Target Properties or evidence reasonably
satisfactory to Acquiror that the associated loan has been repaid;

 

(m)          certificate of good standing of Target
from the State Department of Assessments and Taxation of the State of Maryland;

 

(n)           estoppels from the community
associations set forth on Section 9.04(n) of the Target
Disclsoure Letter;

 

(o)           tenant estoppels as more particularly
set forth in Section 9.02(f) hereof;

 

(p)           the Office Assumed Loan Documents;

 

(q)           with respect to obligations of Target
to P. Douglas Dollenberg, a receipt evidencing payment of such obligations, a
payoff acknowledgement, a copy of the original promissory note marked cancelled
and paid-in-full and a copy of the returned Target stock certificates;

 

(r)            the First Amendment to Retirement
Agreement by and between P. Douglas Dollenberg, NPI and Target in substantially
the form of Exhibit L attached hereto;

 

(s)            releases from the employees listed
in document #1 under the heading “Employee Benefit Plans of Target” in Section 6.02(o)(ii) of
the Target Disclosure Letter;

 

(t)            evidence of payment of all deferred
management fees owed by Target to NPI;

 

(u)           evidence from Mercantile — Safe
Deposit and Trust Company that there is no balance due under Target’s revolving
line of credit;

 

(v)           the License Agreement (as executed by
the Liquidating Trust);

 

66

 

(w)                               the
Acknowledgement by P. Douglas Dollenberg in substantially the form attached
hereto as Exhibit N; and

 

(x)                                 the Additional
Acknowledgement #1 by P. Douglas Dollenberg in substantially the form attached
hereto as Exhibit O.

 

9.05.                     Deliveries by Acquiror.  At
Closing, Acquiror shall execute and deliver or cause to be delivered to Target:

 

(a)                                 the Merger
Consideration, as more particularly set forth in Section 4.01;

 

(b)                                 certificate of
good standing of Acquiror from the State Department of Assessments and Taxation
of the State of Maryland;

 

(c)                                  the Office
Assumed Loan Documents;

 

(d)                                 legal opinion
of DLA Piper US LLP, dated as of the Closing Date in the form attached hereto
as Exhibit M;

 

(e)                                  the certificate
described in Section 9.03(f);

 

(f)                                   the Reciprocal
Release; and

 

(g)                                  the License
Agreement (as executed by the Surviving Entity).

 

ARTICLE X.

TERMINATION

 

10.01.              Termination.

 

This
Agreement may be terminated at any time prior to the Effective Time in writing
(the date of any such termination, the “Termination Date”):

 

(a)                                 by the mutual written consent of Acquiror and Target;

 

(b)                                 by either Target or the Acquiror upon written notice to the other party,
if:

 

(i)            any Governmental Authority with
jurisdiction over such matters shall have issued a governmental order
permanently restraining, enjoining or otherwise prohibiting the Transaction,
and such governmental order shall have become final and unappealable; provided, however,
that the terms of this Section 10.01(b)(i) shall not be
available to any party (A) unless such party shall have used its
reasonable efforts to oppose any such governmental order or to have such
governmental order vacated or made inapplicable to the Transaction or (B) whose
failure to comply with the terms of this Agreement has been the cause of, or
materially contributed to, such governmental action;

 

67

 

(ii)           the Transaction shall not have been
consummated on or before February 28, 2007 (the “Outside Date”), unless
the failure to consummate the Transaction on or prior to the Outside Date is
the result of any action or inaction under this Agreement by the party seeking
to terminate the Agreement pursuant to the terms of this Section 10.01(b)(ii);
or

 

(iii)          upon a vote at a duly held meeting (or
at any adjournment or postponement thereof) to obtain the Stockholder Approval,
the Stockholder Approval is not obtained;

 

(c)                                  by Acquiror, upon written notice to Target:

 

(i)            if a Target Material Adverse Effect shall have occured;

 

(ii)           if the Target Board makes a Change in
Recommendation prior to the Target Stockholder Meeting; or

 

(iii)          if Target shall have breached any of
its representations or warranties or failed to perform any of its covenants or
other agreements contained in this Agreement, which breach or failure to
perform (A) would give rise to the failure of a condition set forth in Section 9.02
and (B) is incapable of being cured by Target by the Outside Date or, if
capable of being cured by Target by the Outside Date, Target does not commence
to cure such breach or failure within ten (10) Business Days after its
receipt of written notice thereof from Acquiror and cure such breach or failure
by the Outside Date;

 

(d)                                 by Target, upon written notice to Acquiror, if:

 

(i)            Acquiror shall have breached any of
its representations or warranties or failed to perform any of its covenants or
other agreements contained in this Agreement, which breach or failure to
perform (A) would give rise to the failure of a condition set forth in Section 9.03(a) or
9.03(b) and (B) is incapable of being cured by Acquiror by the
Outside Date or, if capable of being cured by Acquiror by the Outside Date,
Acquiror does not commence to cure such breach or failure within ten (10) Business
Days after its receipt of written notice thereof from Target and cure such
breach or failure by the Outside Date;

 

(ii)           prior to receipt of the Stockholder
Approval, Target (i) receives a Superior Proposal, (ii) resolves to
accept such Superior Proposal, (iii) shall have given Acquiror three (3) Business
Days’ prior written notice of its intention to terminate pursuant to this
provision, and (iv) such proposal continues to constitute a Superior
Proposal taking into account any revised proposal made by Acquiror during such
three (3) Business Day period; provided,
however, that such termination shall not be effective until such
time as payment of the Termination Fee required by Section 10.03(b) shall
have been made by Target; provided, further,
that Target’s right to terminate this Agreement under this Section 10.01(d)(ii) shall
not be available if Target is then in breach of Section 7.04; or

 

68

 

(iii)          the average last reported sale price
on the NYSE of the Acquiror Common Shares over any period of ten (10) consecutive
trading days after the date of this Agreement is less than or equal to $35.00
per share.

 

10.02.              Effect of Termination.

 

In
the event of termination of this Agreement and abandonment of the Merger and the
other transactions contemplated by this Agreement pursuant to and in accordance
with Section 10.01, this Agreement shall forthwith become void and
of no further force or effect whatsoever and there shall be no liability on the
part of any party, or their respective officers, directors, subsidiaries or
partners, as applicable, to this Agreement; provided,
however, that notwithstanding the
foregoing, the covenants and other obligations under this Agreement shall
terminate upon the termination of this Agreement, except that the agreements
set forth in Section 7.03(b), Section 7.06, Section 8.01,
Section 10.03, Section 11.07, Section 11.08
and Section 11.09 shall survive termination indefinitely.  If this Agreement is terminated as provided
herein, all filings, applications and other submissions made pursuant to this
Agreement, to the extent practicable, shall be withdrawn from the agency or
other Person to which they were made.

 

10.03.              Fees and Expenses.

 

(a)           Except as otherwise explicitly set
forth in this Section 10.03 or elsewhere in this Agreement, all
costs and expenses incurred in connection with this Agreement or the
transactions contemplated hereby shall be paid by the party incurring such
expenses, whether or not the transactions contemplated by this Agreement are
consummated.

 

(b)           Target agrees that if this Agreement
shall be terminated by (i) Acquiror pursuant to Section 10.01(c)(ii),
or (ii) Target pursuant to Section 10.01(d)(ii), Target shall pay
to Acquiror an amount equal to $6,500,000 (the “Termination Fee”) in cash upon such
termination.

 

(c)           Target agrees that if this Agreement
shall be terminated by Acquiror or Target pursuant to Section 10.01(b)(iii),
and, (i) prior to the Target Stockholder Meeting, an Acquisition Proposal
shall have been publicly announced that is not subsequently withdrawn, and (ii) concurrently
with such termination or within twelve (12) months following the Termination
Date, Target enters into an agreement with respect to such Acquisition
Proposal, or such Acquisition Proposal is consummated, then Target shall, if
and when such Acquisition Proposal is consummated, pay to Acquiror the
Termination Fee within three (3) Business Days following consummation.

 

(d)           Intentionally Deleted.

 

(e)           Acquiror agrees that if (i) all
conditions to Closing under Section 9.01 and Section 9.02
have been satisfied, (ii) Target has tendered all of its deliveries under Section 9.04,
(iii) Acquiror fails to deliver the closing deliveries set forth in Section 9.05
and (iv) Target therefore terminates this Agreement in accordance with
Section

 

69

 

10.01(b)(ii),
then Acquiror shall reimburse Target for the full amount of prepayment
penalties under the Existing Office Indebtedness previously paid by Target.  Target acknowledges that if it elects
reimbursement of the prepayment penalties under this Section 10.03(e),
such election shall be its sole remedy, together with payment to it of the
Deposit, upon the termination of this Agreement.

 

(f)            Intentionally Deleted.

 

(g)           If Stockholder Approval is not
obtained prior to the Outside Date, Target shall reimburse Acquiror for the
reasonable fees and expenses of outside auditors for any audit required by Rule 3-14
of Regulation S-X, as promulgated by the SEC, which filing requirement results
from the filing or contemplated filing of the Registration Statement, within
three (3) Business Days after demand by Acquiror.

 

(h)           Intentionally Deleted.

 

(i)            If Acquiror terminates this
Agreement pursuant to Section 10.01(c)(i) or Section 10.01(c)(iii),
Target shall reimburse Acquiror for Acquiror’s reasonable costs and expenses
(including reasonable attorney’s fees) in connection with this Transaction, not
to exceed One Million Dollars ($1,000,000), within three (3) Business Days
after demand by Acquiror.

 

ARTICLE XI.

GENERAL PROVISIONS

 

11.01.              Survival of Representations and Warranties.

 

The
representations, warranties, covenants and agreements in this Agreement and any
exhibit, schedule or instruments delivered pursuant to this Agreement shall
survive the Closing for a period of thirty-six (36) months from the Closing
Date; provided, that any claims
made under Section 7.07 prior to the end of such thirty-six (36)
month period shall survive until such claim is resolved pursuant to Section 7.07.

 

11.02.              Notices.

 

All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in Person or by a recognized overnight courier service or
sent by telecopy (providing confirmation of transmission) to the respective
parties at the following addresses or telecopy numbers (or at such other
address or telecopy numbers for a party as shall be specified in a notice given
in accordance with this Section 11.02):

 

70

 

if
to Acquiror, Acquiror OP or Merger Subsidiary:

 

Corporate
Office Properties Trust

6711 Columbia Gateway Drive, Suite 300

Columbia, Maryland 21046

Fax No.: (443) 285-7650

Attn: Roger A. Waesche, Jr., Executive Vice President and Chief Operating
Officer

 

with
copies to:

 

Corporate
Office Properties Trust

6711 Columbia Gateway Drive, Suite 300

Columbia, Maryland 21046

Fax No.: (443) 285-7652

Attn: Karen M. Singer, Senior Vice President and General Counsel

 

and

 

DLA
Piper US LLP

6225 Smith Avenue

Baltimore, Maryland 21209

Fax No.: (410) 580-3400

Attn: Richard E. Levine, Esq.

 

if
to Target:

 

Nottingham
Village, Inc.

100 West Pennsylvania Avenue

Towson, Maryland 21204

Fax No.:  (410) 321-8018

Attention: J. Joseph Credit

 

with
a copy to:

 

Gordon,
Feinblatt, Rothman, Hoffberger & Hollander, LLC

233 East Redwood Street

Baltimore, Maryland 21202

Fax No.:  (410) 576-4246

Attention:  Abba David Poliakoff, Esq.

 

11.03.     Severability.

 

If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner

 

71

 

materially
adverse to any party.  Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest
extent possible.

 

11.04.     Amendment.

 

This
Agreement may be amended by the parties hereto by action taken by their
respective board of directors (or similar governing body or entity) at any time
prior to the Effective Time; provided,
however, that, after approval of
the Merger by the Target Stockholders, no amendment may be made that would
reduce the Purchase Price or the Merger Consideration without further
Stockholder Approval.  This Agreement may
not be amended except by an instrument in writing signed by the parties hereto.

 

11.05.     Entire Agreement; Assignment.

 

This
Agreement, the exhibits attached hereto, the Target Disclosure Letter and any
documents delivered by the parties in connection herewith constitute the entire
agreement between the parties with respect to the subject matter hereof and
supersedes, except as set forth in Section 7.03(b), all prior
agreements and undertakings, both written and oral, among the parties, or any
of them, with respect to the subject matter hereof and thereof.  This Agreement shall not be assigned by
operation of law or otherwise (except to the Surviving Entity) without the
prior written consent of the other parties.

 

11.06.     Parties in Interest.

 

This
Agreement shall be binding upon and inure solely to the benefit of each party hereto,
and nothing in this Agreement, express or implied, other than Section 7.08,
is intended to or shall confer upon any other Person any right, benefit or
remedy of any nature whatsoever under or by reason of this Agreement.

 

11.07.     Specific Performance.

 

(a)           The parties hereto agree that
irreparable damage would occur to Acquiror in the event any provision of this
Agreement were not performed by Target or Target Subsidiaries in accordance
with the terms hereof and that Acquiror shall be entitled to seek specific
performance of the terms and conditions of this Agreement, in addition to any
other remedy at law or equity against Target.

 

(b)           In the event Acquiror fails to
perform its obligations under this Agreement, Target’s exclusive remedy shall
be to terminate this Agreement, in which case the Deposit shall be paid by the
Cash Escrow Agent as provided in Section 8.01 and Section 10.03(e),
if applicable.  Target may not pursue
specific performance against Acquiror, Acquiror OP or Merger Subsidiary.

 

72

 

11.08.     Governing Law.

 

This
Agreement shall be governed by and construed in accordance with, the laws of
the State of Maryland without regard, to the fullest extent permitted by law,
to the conflicts of laws provisions thereof which might result in the
application of the laws of any other jurisdiction.

 

11.09.     Waiver of Jury Trial.

 

Each
of the parties hereto hereby waives to the fullest extent permitted by
applicable Law any right it may have to a trial by jury with respect to any
litigation directly or indirectly arising out of, under or in connection with
this Agreement or the transactions contemplated hereby.  Each of the parties hereto (a) certifies
that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce that foregoing waiver and (b) acknowledges
that it and the other parties hereto have been induced to enter into this
Agreement and the transactions contemplated hereby, as applicable, by, among
other things, the mutual waivers and certifications in this Section 11.09.

 

11.10.     Headings.

 

The
descriptive headings contained in this Agreement are included for convenience
of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

11.11.     Counterparts.

 

This
Agreement may be executed and delivered (including by facsimile transmission)
in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement.

 

11.12.     Mutual Drafting.

 

Each
party hereto has participated in the drafting of this Agreement, which each
party acknowledges is the result of extensive negotiations between the parties.

 

11.13.     Time is of the
Essence.

 

Time
is of the essence with respect to each provision of this Agreement.

 

[Signature page follows]

 

73

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed in counterparts by their duly authorized
officers, all as of the day and year first above written.

 

	
   

  	
  CORPORATE
  OFFICE PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROGER A. WAESCHE, JR.

  
	
   

  	
   

  	
  Executive
  Vice President

  
	
   

  	
   

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
   

  	
  Chief
  Operating Officer and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CORPORATE
  OFFICE PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Corporate
  Office Properties Trust,

  	 

	
   

  	
   

  	
  its
  sole general partner

  	 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROGER A. WAESCHE, JR.

  
	
   

  	
   

  	
  Executive
  Vice President

  
	
   

  	
   

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
   

  	
  Chief
  Operating Officer and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  W&M
  BUSINESS TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ROGER A. WAESCHE

  
	
   

  	
   

  	
  Executive
  Vice President

  
	
   

  	
   

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
   

  	
  Chief
  Operating Officer and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTTINGHAM
  VILLAGE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. JOSEPH CREDIT

  
	
   

  	
   

  	
  J.
  Joseph Credit

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  
					

 

[Signature page to
Merger Agreement]

 

74

 

JOINDERS

 

Nottingham Properties, Inc. joins herein for the sole purpose of
acknowledging its obligations under Sections 8.09 and 8.13 of this Agreement.

 

	
   

  	
  NOTTINGHAM
  PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. JOSEPH CREDIT

  
	
   

  	
   

  	
  J.
  Joseph Credit

  
	
   

  	
   

  	
  President
  and

  
	
   

  	
   

  	
  Chief
  Executive Officer

  

 

 

NVI Liquidating Trust joins herein to evidence its obligations under
this Agreement, including its obligations as Stockholders’ Agent under Section 7.07
of this Agreement.

 

	
   

  	
  NVI
  LIQUIDATING TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. JOSEPH CREDIT

  
	
   

  	
   

  	
  J.
  Joseph Credit, Trustee

  

 

75

 

The
Cash Escrow Agent executes this Purchase Agreement and Agreement and Plan of
Merger of this 21st day of December, 2006 to acknowledge its
receipt of an original copy of this Agreement as executed by Acquiror, Acquiror
OP, Merger Subsidiary and Target, to acknowledge that it is holding the
Deposit, and to acknowledge its agreement to act as Cash Escrow Agent in
accordance with the terms and conditions set forth herein.

 

	
  WITNESS:

  	
   

  	
  CASH
  ESCROW AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ANCHOR
  TITLE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  M. CHARLOTTE POWEL

  
	
   

  	
   

  	
   

  	
  Name:
  M. Charlotte Powel

  
	
   

  	
   

  	
   

  	
  Title:
  President

  

 

76

 

The
Share Escrow Agent executes this Purchase Agreement and Agreement and Plan of
Merger of this 21st
day of December, 2006 to acknowledge its receipt of an original copy of
this Agreement as executed by Acquiror, Acquiror OP, Merger Subsidiary and
Target, to acknowledge that it is holding the Escrow Shares, and to acknowledge
its agreement to act as Share Escrow Agent in accordance with the terms and
conditions set forth herein.

 

	
  WITNESS:

  	
   

  	
  SHARE
  ESCROW AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  CHRIS M. FRIESS

  
	
   

  	
   

  	
   

  	
  Name:
  Chris M. Friess

  
	
   

  	
   

  	
   

  	
  Title:
  Account Manager

  

 

77

 

SCHEDULE 1

 

PURCHASE PROPERTIES

 

	
  Property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Ownership Immediately

  
	
  Class

  	
   

  	
  Property

  	
   

  	
  Address

  	
   

  	
  Prior To Effective Time

  
	
  B.1

  	
   

  	
  37
  Allegheny Avenue

  	
   

  	
  37
  Allegheny Avenue, Baltimore County, MD

  	
   

  	
  37
  Allegheny Business Trust

  
	
  B.2

  	
   

  	
  10552
  Philadelphia Road — Leasehold Interest

  	
   

  	
  10552
  Philadelphia Road, Baltimore County, MD

  	
   

  	
  Philadelphia
  Road Operating Company, LLC

  
	
  B.3

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  B.4

  	
   

  	
  9020
  Mendenhall

  	
   

  	
  9020
  Mendenhall Court, Howard County, MD

  	
   

  	
  9020
  Mendenhall, LLC

  
	
  B.5

  	
   

  	
  Woods
  at Broken Land

  	
   

  	
  9700
  Patuxent Woods Drive, Howard County, MD

  	
   

  	
  Woods
  Investors, LLC

  
	
  B.6

  	
   

  	
  Rivers
  Center III

  	
   

  	
  10270
  N. Old Columbia Road, Howard County, MD

  	
   

  	
  Rivers
  Center III Investors, LLC

  
	
  G.1

  	
   

  	
  Campbell
  Corporate Center I

  	
   

  	
  4940
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Corporate
  Center I Limited Partnership

  
	
  G.9

  	
   

  	
  Nottingham
  Centre

  	
   

  	
  502
  Washington Avenue, Baltimore County, MD

  	
   

  	
  Nottingham
  Associates Limited Partnership

  
	
  G.10

  	
   

  	
  White
  Marsh Health Center

  	
   

  	
  8114
  Sandpiper Circle, Baltimore County, MD

  	
   

  	
  White
  Marsh Health Center Limited Partnership, LLLP

  
	
  G.12

  	
   

  	
  White
  Marsh Hi-Tech I and II

  	
   

  	
  4969
  Mercantile Road (Bldg 1)

  4979 Mercantile Road (Bldg 2)

  4981 Mercantile Road (Parking)

  	
   

  	
  White
  Marsh Hi-Tech 1 Business Trust (49%) and White Marsh Hi-Tech 2 Business Trust
  (51%)

  

 

Notes

 

G.1.  Acquiror OP will purchase a 50% limited
partnership interest in Corporate Center I Limited Partnership.

G.9.  Acquiror OP will purchase a 43.7% limited
partnership interest in Nottingham Associates Limited Partnership.

G.10.  Acquiror OP will purchase a 60% limited
partnership interest in Sandpiper Limited Partnership which, in turn, owns a
72.5% general partnership interest in White Marsh Health Center Limited
Partnership, LLLP.

G.12.  Acquiror OP will purchase 100% of beneficial
interests in White Marsh Hi-Tech 2 Business Trust (which shall own a 51%
tenancy-in-common interest in White Marsh Hi-Tech property).

 

S-1-1

 

SCHEDULE 2

 

MERGER PROPERTIES

 

	
  Property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property Owner Immediately

  
	
  Class

  	
   

  	
  Property

  	
   

  	
  Address

  	
   

  	
  Prior To Effective Time

  
	
  A.1

  	
   

  	
  8029
  - 8031 Corporate Drive

  	
   

  	
  8029-8031
  Corporate Drive, Baltimore County, MD

  	
   

  	
  8029
  Corporate Drive Business Trust

  
	
  A.2

  	
   

  	
  Corporate
  Place I

  	
   

  	
  8140
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place I Business Trust

  
	
  A.3

  	
   

  	
  Franklin
  Ridge V

  	
   

  	
  9900
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge V Business Trust

  
	
  A.4

  	
   

  	
  Tyler
  Ridge II — Fee Interest

  	
   

  	
  8007
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge II Business Trust

  
	
  A.5

  	
   

  	
  Tyler
  Ridge IIA

  	
   

  	
  8003
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge IIA Business Trust

  
	
  A.6

  	
   

  	
  Tyler
  Ridge III — Fee Interest

  	
   

  	
  7941
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge III Business Trust

  
	
  A.7

  	
   

  	
  McLean
  Ridge V (L)

  	
   

  	
  8100
  Sandpiper Circle, Baltimore County, MD

  	
   

  	
  McLean
  Ridge V Business Trust

  
	
  A.8

  	
   

  	
  Corporate
  Place III (L)

  	
   

  	
  8120
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place III Business Trust

  
	
  A.9

  	
   

  	
  Corporate
  Place IV (L)

  	
   

  	
  8130
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place IV Business Trust

  
	
  A.10

  	
   

  	
  Lot
  401 — on cul-de-sac (L)

  (Tax Parcel No. 11-2200015748)

  	
   

  	
  4985
  Mercantile Road, Baltimore County, MD

  	
   

  	
  Lot
  401 Business Trust

  
	
  A.11

  	
   

  	
  Nottingham
  Ridge (L) and

  (Tax Parcel Nos. 11-2400002078 and 11-2300012935)

  	
   

  	
  5300
  Nottingham Drive, Baltimore County, MD SWM Pond in Nottingham Ridge

  	
   

  	
  Nottingham
  Ridge I Business Trust

  
	
  A.12

  	
   

  	
  Nottingham
  Ridge/Phila. Road (L)

  (Tax Parcel No. 11-2400002075)

  	
   

  	
  5357
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge II Business Trust

  
	
  A.13

  	
   

  	
  10521
  Red Run Boulevard (L)

  	
   

  	
  10521
  Red Run Boulevard, Baltimore County, MD

  	
   

  	
  10521
  Red Run Business Trust

  
	
  A.14

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  A.15

  	
   

  	
  Campbell
  Blvd & Franklin Sq. (18.62 acres and 1.0052 acres SWM) (L)

  (Tax Parcel No. 14-2200020875) and 

  Tax Parcel No. 14-22000020877)

  	
   

  	
  5251
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Campbell
  Boulevard I Business Trust

  

 

S-2-1

 

	
  A.16

  	
   

  	
  Campbell
  Blvd & Franklin Sq. (5.23 acres) (L)

  (Tax Parcel No. 14-2200020165)

  	
   

  	
  5201
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Campbell
  Boulevard II Business Trust

  
	
  A.17

  	
   

  	
  Nottingham
  Ridge/Phila. Rd. (9.14 acres) (L)

  (Tax Parcel No. 11-2300012656)

  	
   

  	
  5361
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge III Business Trust

  
	
  A.18

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  A.19

  	
   

  	
  Franklin
  Ridge Open Space

  (Tax Parcel No. 14-2300006823) and

  (Tax Parcel No. 14-2300006822)

  	
   

  	
  .174
  Ac Pvt Op Sp., NSR Franklin Square Drive and .539 Ac Pvt Op Sp., NSR Franklin
  Square Drive

  	
   

  	
  Franklin
  Ridge Open Space Business Trust

  
	
  A.20

  	
   

  	
  8027
  Corporate Drive

  	
   

  	
  8027
  Corporate Drive, Baltimore County, MD Lot 13 — Adjacent to Tyler Ridge I

  	
   

  	
  8027
  Corporate Drive Business Trust

  
	
  A.21

  	
   

  	
  Tyler
  Ridge Water Management

  (Tax Parcel No. 14-220001624) and

  (Tax Parcel No. 14-220001623)

  	
   

  	
  Flood
  Plain and Storm Water Management Area adjacent to Tyler Ridge.

  	
   

  	
  Tyler
  Ridge Water Management Business Trust

  
	
  C.1

  	
   

  	
  10552
  Philadelphia Road — Fee Interest

  	
   

  	
  10552
  Philadelphia Road, Baltimore County, MD

  	
   

  	
  Honeygo
  Run Holdings, LLC

  
	
  C.2

  	
   

  	
  Corporate
  Place II

  	
   

  	
  8110
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place B Equity Affiliates, LLC

  
	
  C.3

  	
   

  	
  Franklin
  Ridge I

  	
   

  	
  9940
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 1 Business Trust

  
	
  C.4

  	
   

  	
  Franklin
  Ridge II

  	
   

  	
  9930
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 2 Business Trust

  
	
  C.5

  	
   

  	
  Franklin
  Ridge IV

  	
   

  	
  9910
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 4 Business Trust

  
	
  C.6

  	
   

  	
  Nottingham
  Ridge C

  	
   

  	
  5355
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge No. 20 Business Trust

  
	
  C.7

  	
   

  	
  Nottingham
  Ridge D

  	
   

  	
  5325
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge No. 30 Business Trust

  
	
  E.1

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  F.1

  	
   

  	
  White
  Marsh Commerce Center I

  	
   

  	
  10001
  Franklin Square (10001 — 10049), Baltimore County, MD

  	
   

  	
  White
  Marsh Commerce Center I Business Trust

  
	
  F.2

  	
   

  	
  McLean
  Ridge I

  	
   

  	
  8012
  - 8020 Corporate Drive, Baltimore County, MD

  	
   

  	
  McLean
  Ridge I Business Trust

  
	
  F.3

  	
   

  	
  McLean
  Ridge II

  	
   

  	
  8002
  - 8010 Corporate Drive, Baltimore County, MD

  	
   

  	
  McLean
  Ridge II Business Trust

  
	
  F.4

  	
   

  	
  McLean
  Ridge III

  	
   

  	
  7920
  Corporate Drive, Baltimore County, MD

  	
   

  	
  McLean
  Ridge III Business Trust

  
	
  F.5

  	
   

  	
  McLean
  Ridge IV

  	
   

  	
  8098
  Sandpiper Cir., Baltimore County, MD

  	
   

  	
  McLean
  Ridge IV Business Trust

  

 

S-2-2

 

	
  F.6

  	
   

  	
  White
  Marsh Commerce Center II (L)

  	
   

  	
  9951
  Franklin Square Drive (9951-9999 Franklin Sq.), Baltimore County, MD

  	
   

  	
  White
  Marsh Commerce Center II Business Trust

  
	
  G.1

  	
   

  	
  Campbell
  Corporate Center I and Parcel A (.630 acres-Tax Parcel
  No. 14-2200005926)

  	
   

  	
  4940
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Corporate
  Center I Limited Partnership (Campbell Corporate Center I) and Campbell
  Corporate Center I-2 Business Trust (Tax Parcel No. 14-2200005926)

  
	
  G.2

  	
   

  	
  Franklin
  Ridge III

  	
   

  	
  9920
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 3 Business Trust

  
	
  G.3

  	
   

  	
  7272
  Park Circle Drive

  	
   

  	
  7272
  Park Circle Drive, Anne Arundel County, MD

  	
   

  	
  Park
  Circle Equities, LLC

  
	
  G.8

  	
   

  	
  1.14
  acres Tax Parcel No. 14-2000000284

  	
   

  	
  Campbell
  Boulevard, Baltimore County, MD

  	
   

  	
  White
  Marsh Business Center 2 Business Trust (Tax Parcel No. 14-2000000284)

  
	
  G.9

  	
   

  	
  Nottingham
  Centre

  	
   

  	
  502
  Washington Avenue, Baltimore County, MD

  	
   

  	
  Nottingham
  Associates Limited Partnership

  
	
  G.10

  	
   

  	
  White
  Marsh Health Center

  	
   

  	
  8114
  Sandpiper Circle, Baltimore County, MD

  	
   

  	
  White
  Marsh Health Center Limited Partnership, LLLP

  
	
  G.12

  	
   

  	
  White
  Marsh Hi-Tech I and II

  	
   

  	
  4969
  Mercantile Road (Bldg 1)

  4979 Mercantile Road (Bldg 2)

  4981 Mercantile Road (Parking)

  	
   

  	
  White
  Marsh Hi-Tech 1 Business Trust (49%) and White Marsh Hi-Tech 2 Business Trust
  (51%)

  

 

Notes

 

1.  All are improved by buildings, except for
those marked with an “L” which are land only.

2.  Target shall own 100% of the ownership
interests in each of the Property Owners in the last column, except as shown
below.

G.1.  Corporate Center I Limited Partnership shall
be owned by Corporate Center I, LLC (1% general partner), Acquiror OP (50%
limited partner) and Target (49% limited partner).  Target shall own 100% of Corporate Center I,
LLC.  Target shall also own 100% of Campbell
Corporate Center I-2 Business Trust.

G.9.  Nottingham Associates Limited Partnership
shall be owned by Nottingham Center, LLC (1% general partner) Acquiror OP
(43.7% limited partner) and Target (55.3% limited partner).  Target shall own 100% of Nottingham Center,
LLC.

G.10.  White Marsh Health Center Limited
Partnership, LLLP shall be owned by Sandpiper Limited Partnership (72.5%
general partner) and Target (27.5% limited partner).  Target shall own a 40% general partnership
interest in Sandpiper Limited Partnership and Acquiror OP shall own a 60%
limited partnership interest in Sandpiper Limited Partnership.

G.12.  Target shall own 100% of White Marsh Hi-Tech
I Business Trust (which shall own a 49% tenancy-in-common interest in White
Marsh Hi-Tech property) and Acquiror OP shall own 100% of White Marsh Hi-Tech 2
Business Trust (which shall own a 51% tenancy-in-common interest in White Marsh
Hi-Tech property).

 

S-2-3

 

SCHEDULE 3

 

RETAIL PROPERTIES

 

	
  Property

  	
   

  	
  Address

  	
   

  	
  Property Owner Immediately

  Prior To Effective Time

  
	
  Avenue
  at White Marsh Parking

  	
   

  	
  8207
  Town Center Drive, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  8019
  Honeygo Blvd — groundlease — Bertucci’s

  	
   

  	
  8019
  Honeygo Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  8132
  Corporate Drive — groundlease — Red Lobster

  	
   

  	
  8132
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  4921
  Campbell Blvd — groundlease — TGI Friday’s

  	
   

  	
  4921
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  4924
  Campbell Blvd — groundlease — Johns Hopkins

  	
   

  	
  4924
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  4930
  Campbell Blvd — groundlease — JHU — Phase 2

  	
   

  	
  4930
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5302
  Campbell Blvd — groundlease — McDonald’s II

  	
   

  	
  5302
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  4965-4967
  Campbell Blvd — groundlease — Hilton Garden Inn

  	
   

  	
  4965-4967
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5100
  Campbell Blvd — groundlease — M&T Bank

  	
   

  	
  5100
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5154
  Campbell Blvd — groundlease — Chick-fil-A

  	
   

  	
  5154
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5250
  Campbell Blvd — groundlease — BP/Subway

  	
   

  	
  5250
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5260
  Campbell Blvd — groundlease — SunTrust Bank

  	
   

  	
  5260
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5340
  Campbell Blvd — groundlease — BCSB

  	
   

  	
  5340
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5300
  Campbell Blvd — groundlease — Lowe’s

  	
   

  	
  5300
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Retail
  Properties Business Trust

  
	
  5110
  Campbell Blvd — groundlease — Panera Bread

  	
   

  	
  5110
  Campbell Blvd, Baltimore County, MD

  	
   

  	
  Nottingham
  Square Business Trust

  

 

S-3-1

 

	
  Shoppes at Nottingham Square 1

  	
   

  	
  5270
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Shoppes
  at Nottingham Square Business Trust

  
	
  Shoppes at Nottingham Square 2

  	
   

  	
  5350
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Campbell-Philadelphia
  Business Trust

  
	
  White Marsh Plaza

  	
   

  	
  District
  14, Acct. No. 1900001897, Perry Hall Boulevard Baltimore County, MD

  	
   

  	
  White
  Marsh Plaza Business Trust White Marsh Plaza Limited Partnership White Marsh
  Plaza, LLC

  
	
  The Avenue at White Marsh*

  	
   

  	
  8101
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  The
  Avenue at White Marsh Business Trust

  

 

Notes

 

1.  All are improved by buildings.

2.  NVI owns 100% of the ownership interests in
each of the Property Owners in the last column, except as shown below.

 

*   NVI owns 100% of The Avenue at White Marsh
Business Trust.  However, The Avenue at White
Marsh Business Trust owns only a 30% tenancy-in-common interest in The Avenue
at White Marsh.

 

S-3-2

 

SCHEDULE 4

 

NPI EXCHANGE PROPERTIES

 

	
  Property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property Owner Immediately

  
	
  Class

  	
   

  	
  Property1

  	
   

  	
  Address

  	
   

  	
  Prior To Effective Time

  
	
  D.1

  	
   

  	
  Tyler
  Ridge II — Leasehold Interest

  	
   

  	
  8007
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge II Improvements Business Trust

  
	
  D.2

  	
   

  	
  Tyler
  Ridge III — Leasehold Interest

  	
   

  	
  7941
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge III Improvements Business Trust

  
	
  D.3

  	
   

  	
  Allegheny
  Parking Facility and

  (Tax Parcel No. 09-0914652094) (L)

  	
   

  	
  111
  West Allegheny Avenue, Baltimore County, MD and 117 West Allegheny Avenue,
  Baltimore County, MD

  	
   

  	
  Allegheny
  Parking Business Trust

  
	
  D.4

  	
   

  	
  Campbell
  Building

  	
   

  	
  100
  West Pennsylvania Avenue, Baltimore County, MD

  	
   

  	
  Campbell
  Building Business Trust

  
	
  D.5

  	
   

  	
  Royston
  Building

  	
   

  	
  102
  West Pennsylvania Avenue, Baltimore County, MD

  	
   

  	
  Royston
  Building Business Trust

  
	
  D.6

  	
   

  	
  Lot
  3A — In front of Residence Inn (L)

  	
   

  	
  4960
  Mercantile Road, Baltimore County, MD

  	
   

  	
  Lot
  3A Business Trust

  
	
  D.7

  	
   

  	
  Philadelphia
  Rd./Rt. 43 (28.53 acres) (L)

  (Tax Parcel No. 11-1114066244)

  	
   

  	
  Philadelphia
  Road, Baltimore County, MD

  	
   

  	
  Philadelphia
  Road Business Trust

  
	
  E.2

  	
   

  	
  Riverwood
  Business Center

  	
   

  	
  7150
  Riverwood Drive, Howard County, MD

  	
   

  	
  Riverwood
  Business Center Equity Affiliates, LLC

  
	
  E.3

  	
   

  	
  216
  Schilling Center

  	
   

  	
  216
  Schilling Circle, Baltimore County, MD

  	
   

  	
  Schilling
  216 Investors, LLC

  
	
  E.4

  	
   

  	
  Ridgely’s
  Choice

  	
   

  	
  8623
  Ridgely’s Choice Drive, Baltimore County, MD

  	
   

  	
  Ridgely’s
  Choice Business Trust

  
	
  G.4

  	
   

  	
  Schilling
  Center

  	
   

  	
  222
  Schilling Circle (222-224 Schilling Cir.), Baltimore County, MD

  	
   

  	
  Schilling
  Center Equities, LLC

  
	
  G.5

  	
   

  	
  Professional
  Center I

  	
   

  	
  7939
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership I, LLLP

  
	
  G.6

  	
   

  	
  Professional
  Center II

  	
   

  	
  7923
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership II, LLLP

  
	
  G.7

  	
   

  	
  Professional
  Center III

  	
   

  	
  8133
  Perry Hall Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership III, LLLP

  

 

S-4-1

 

	
  G.8

  	
   

  	
  White
  Marsh Business Center

  	
   

  	
  5020
  Campbell Boulevard (WMBC I) 5022 Campbell Boulevard (WMBC II) 5026 Campbell
  Boulevard (WMBC III) 5024 Campbell Boulevard (WMBC IV), Baltimore County, MD

  	
   

  	
  White
  Marsh Business Center Limited Partnership (White Marsh Business Center)

  
	
  G.11

  	
   

  	
  Tyler
  Ridge I

  	
   

  	
  8011
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge I Business Trust

  

 

Notes

1.  All are improved by buildings, except for
those marked with an “L” which are land only.

2.  NPI owns 100% of the ownership interests in
each of the Property Owners in the last column, except as shown below.

G.5.  Honeygo Limited Partnership I, LLLP shall be
owned by Professional Center I, LLC (1% general partner) and NPI (99% limited
partner).  NPI shall own 100% of
Professional Center I, LLC.

G.6.  Honeygo Limited Partnership II, LLLP shall be
owned by White Marsh Professional Center II, LLC (1% general partner) and NPI
(99% limited partner).  NPI shall own
100% of White Marsh Professional Center II, LLC.

G.7.  Honeygo Limited Partnership III, LLLP shall
be owned by Professional Center III, LLC (1% general partner) and NPI (99%
limited partner).  NPI shall own 100% of
Professional Center III, LLC.

G.8.  White Marsh Business Center Limited
Partnership shall be owned by White Marsh Business Center, LLC (1% general
partner) and NPI (99% limited partner). 
NPI shall own 100% of White Marsh Business Center, LLC.  NPI shall also own 100% of White Marsh
Business Center 2 Business Trust.

 

S-4-2

 

SCHEDULE 5

 

ASSUMED LOANS

 

	
  Lender/

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Origination Date/

  	
   

  	
  Property Securing

  	
   

  	
   

  	
   

  	
  Loan Balance

  	
   

  
	
  Loan Amount

  	
   

  	
  Loan

  	
   

  	
  Property Owner

  	
   

  	
  December 1, 2006

  	
   

  
	
  State
  Farm Bank

  6/24/2005

  $6,000,000

  	
   

  	
  Franklin Ridge IV

  (Property C.5)

  	
   

  	
  Franklin
  Ridge No. 4 Business Trust

  	
   

  	
  $

  	
  5,884,138

  	
   

  
	
  State
  Farm Life Insurance Co.

  7/28/2006

  $6,000,000

  	
   

  	
  7272 Park Circle

  (Property G.3)

  	
   

  	
  Park
  Circle Equities, LLC

  	
   

  	
  $

  	
  5,966,778

  	
   

  
	
  State
  Farm Life Insurance Co.

  4/30/2004

  $6,042,655

  	
   

  	
  Nottingham Center

  (Property G.9)

  	
   

  	
  Nottingham
  Associates Limited Partnership

  	
   

  	
  $

  	
  5,631,974

  	
  *

  

 

*
This figure represents 100% of the outstanding loan balance at December 1,
2006 and the entire loan constitutes an Assumed Loan, even though a 43.7%
interest in the partnership will have been purchased pursuant to the PSA.

 

S-5-1

 

Exhibit A.

CORPORATE OFFICE PROPERTIES TRUST

 

ARTICLES SUPPLEMENTARY

ESTABLISHING AND FIXING THE
RIGHTS AND PREFERENCES

OF

SERIES K CUMULATIVE REDEEMABLE CONVERTIBLE PREFERRED SHARES

(PAR VALUE $0.01 PER SHARE)

 

CORPORATE OFFICE PROPERTIES TRUST, a Maryland real estate
investment trust (hereinafter called the “Trust”), having its principal office
in Columbia, Maryland, hereby certifies to the State Department of Assessments
and Taxation of the State of Maryland that:

 

FIRST: Pursuant to authority expressly vested in the Board
of Trustees of the Trust by Article VI of the Declaration of Trust of the
Trust, as amended to date and as the same may be amended hereafter from time to
time (the “Declaration of Trust”), and in accordance with Section 2-208(b) of
the Maryland General Corporation Law, the Board of Trustees has duly classified
                
authorized but unissued preferred shares of beneficial interest of the Trust
(the “Preferred Shares”) into a series designated as 5.60% Series K
Cumulative Redeemable Convertible Preferred Shares, par value $0.01 per share,
and has provided for the issuance of such class by adoption of a resolution in
the form of Article Third hereof effective as of December     ,
2006.

 

SECOND: The classification increases the number of shares
classified as 5.60% Series K Cumulative Redeemable Convertible Preferred
Shares, par value $0.01 per share, from no shares immediately prior to the
classification to
                      
shares immediately after the classification. 
The classification decreases the number of unclassified Preferred Shares
from 4,660,000 to
                      .

 

THIRD: The terms of the 5.60% Series K Cumulative
Redeemable Convertible Preferred Shares (including the preferences, conversion
and other rights, voting powers, restrictions, limitations as to dividends and
other distributions, qualifications, or terms or conditions of redemption) as
set by the Board of Trustees are as follows:

 

1.             NUMBER OF SHARES
AND DESIGNATION.

 

This
series of Preferred Shares shall be designated as 5.60% Series K
Cumulative Redeemable Convertible Preferred Shares, par value $0.01 per share
(the “Series K Preferred Shares”), and
                    
shares shall be the authorized number of such Series K Preferred Shares
constituting such series.  The
designations, powers, preferences and relative participating, optional or other
special rights, and the qualifications, limitations or restrictions, of the
Series K Preferred Shares shall be subject in all cases to the provisions
of Article VII of the Declaration of Trust regarding limitations on
beneficial ownership of the Trust’s equity securities.

 

 

2.             DEFINITIONS.

 

For
purposes of the Series K Preferred Shares, the following terms shall have
the meanings indicated:

 

“Affiliate” of a Person means a Person that directly, or
indirectly through one or more intermediaries, controls or is controlled by, or
is under common control with, the Person specified.

 

“Board of Trustees” shall mean the Board of Trustees of
the Trust or any committee authorized by such Board of Trustees to perform any
of its responsibilities with respect to the Series K Preferred Shares; provided,
that for purposes of Section 8(a) of this Article, the term “Board of
Trustees” shall not include any such committee.

 

“Business Day” shall mean any day other than a Saturday,
Sunday or a day on which state or federally chartered banking institutions in
New York, New York are not required to be open.

 

“Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time, or any successor statute thereto.  Reference to any provision of the Code shall
mean such provision as in effect from time to time, as the same may be amended,
and any successor thereto, as interpreted by any applicable regulations or
other administrative pronouncements as in effect from time to time.

 

“Common
Shares” shall mean the common shares of beneficial interest, par value $0.01
per share, of the Trust.

 

“Calculation Price” shall have the meaning set forth in
the Purchase Agreement.

 

“Current Market Price” of publicly traded Common Shares
or any other class or series of capital shares or other security of the Trust
or of any similar security of any other issuer for any day shall mean the last
reported sales price, regular way settlement on such day, or, if no sale takes
place on such day, the average of the reported closing bid and asked prices
regular way on such day, in either case as reported on the New York Stock
Exchange (“NYSE”) or, if such security is not listed or admitted for trading on
the NYSE, on the principal national securities exchange on which such security
is listed or admitted for trading or, if not listed or admitted for trading on
any national securities exchange, the average of the closing bid and asked
prices on such day in the over-the-counter market as reported by the NASDAQ
Stock Market, Inc. (“NASDAQ”) or, if bid and asked prices for such
security on such day shall not have been reported through NASDAQ, the average
of the bid and asked prices on such day as furnished by any NYSE member firm
regularly making a market in such security selected for such purpose by the
Chief Executive Officer of the Trust or the Trustees or if any class or series
of securities are not publicly traded, the fair value of the shares of such class
as determined reasonably and in good faith by the Trustees.

 

2

 

“Declaration
of Trust” shall mean the Amended and Restated Declaration of Trust of the Trust
as filed for record with the State Department of Assessments and Taxation of
the State of Maryland, and any amendments thereto.

 

“Dividend
Payment Date” shall mean January 15, April 15, July 15 and
October 15 of each year; provided, that if any Dividend Payment
Date falls on any day other than a Business Day, the dividend payment payable
on such Dividend Payment Date shall be paid on the Business Day immediately
following such Dividend Payment Date and no interest shall accrue on such
dividend from such date to such Dividend Payment Date.

 

“Dividend
Periods” shall mean the Initial Dividend Period and each subsequent quarterly
dividend period commencing on and including January 15, April 15,
July 15 and October 15 of each year and ending on and including the
day preceding the first day of the next succeeding Dividend Period, other than
the Dividend Period during which any Series K Preferred Shares shall be
redeemed pursuant to Section 5 of this
Article, which shall end on and include the Redemption Date with respect
to the Series K Preferred Shares being redeemed.

 

“Dividend
Record Date” shall have the meaning set forth in Section 3(a) of this
Article.

 

“Equity Shares” shall mean shares of any class or series
of shares of beneficial ownership in the Trust.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Initial
Dividend Period” shall mean the period commencing on and including the Issue
Date and ending on and including April 14, 2007.

 

“Issue
Date” shall mean December       , 2006.

 

“Junior
Shares” shall have the meaning set forth in Section 8(a) of this
Article.

 

“Liquidation
Preference” shall have the meaning set forth in Section 4(a) of this
Article.

 

“Operating
Partnership” shall mean Corporate Office Properties, L.P., a Delaware limited
partnership.

 

“Parity
Shares” shall have the meaning set forth in Section 8(b) of this
Article.

 

“Person”
shall mean an individual, corporation, partnership, estate, trust (including a
trust qualifying under Section 401(a) or 501(c)(17) of the Code), a
portion of a trust permanently set aside for or to be used exclusively for the
purposes described in Section 642(c) of the Code, association,
“private foundation,” within the meaning of Section 509(a) of the
Code, joint stock company or other entity, and also includes a “group,” as that
term is used for purposes of Section 13(d)(3) of the Exchange Act,
and a group to which an Excepted Holder Limit (as defined in Article VII
of the Declaration of Trust) applies.

 

3

 

“Purchase
Agreement” shall mean that certain Purchase Agreement and Agreement and Plan of
Merger, dated as of
                              ,
2006, by and among the Trust, the Operating Partnership, W&M Business
Trust, a Maryland business trust and Nottingham Village, Inc., a Maryland
corporation.

 

“Redemption
Date” shall mean, in the case of any redemption of any Series K Preferred
Shares, the date fixed for redemption of such shares.

 

“Redemption
Notice” shall have the meaning set forth in Section 5(e) of this
Article.

 

“Redemption Price” shall mean, with respect to any
Series K Preferred Shares to be redeemed, a cash payment equal to 100% of
the Liquidation Preference thereof plus all accrued and unpaid dividends, if
any, to the Redemption Date.

 

“REIT”
shall mean a “real estate investment trust,” as defined in Section 856 of
the Code.

 

“Senior
Shares” shall have the meaning set forth in Section 7(c) of this
Article.

 

“Series G
Preferred Shares” shall mean the Trust’s 8% Series G Cumulative Redeemable
Preferred Shares of beneficial interest, par value $0.01 per share.

 

“Series H
Preferred Shares” shall mean the Trust’s 7.5% Series H Cumulative
Redeemable Preferred Shares of beneficial interest, par value $0.01 per share.

 

“Series J
Preferred Shares” shall mean the Trust’s 7.625% Series E Cumulative
Redeemable Preferred Shares of beneficial interest, par value $0.01 per share.

 

“Set
apart for payment” shall be deemed to include, without any action other than
the following, the recording by the Trust in its accounting ledgers of any
accounting or bookkeeping entry which indicates, pursuant to a declaration of
dividends or other distribution by the Board of Trustees, the allocation of
funds to be so paid on any series or class of Equity Shares of the Trust; provided,
that the funds are actually available for and have been segregated for such
purpose; provided, further, that if any funds for any class or
series of Junior Shares or any class or series of Parity Shares are placed in a
separate account of the Trust or delivered to a disbursing, paying or other
similar agent, then “set apart for payment” with respect to the Series K
Preferred Shares shall mean placing such funds in a separate account or
delivering such funds to a disbursing, paying or other similar agent.

 

“Transfer
Agent” means Wells Fargo & Company or  such
transfer agent as may be designated from time to time by the Board of Trustees
or its designee as the transfer agent for the Series K Preferred Shares.

 

“Trustee”
shall mean a member of the Board of Trustees.

 

“Voting Parity Shares” shall have the meaning set forth
in Section 8(a) of this Article.

 

4

 

3.             DIVIDENDS.

 

(a)           The holders of Series K
Preferred Shares shall be entitled to receive, when, as and if declared by the
Board of Trustees, out of funds legally available for the payment of dividends,
quarterly cash dividends on the Series K Preferred Shares at the rate of
5.60% of the Liquidation Preference per year ($2.80 per share per year).  Such dividends shall accrue and be cumulative
from the Issue Date, whether or not in any Dividend Period or Periods such
dividends shall be declared or there shall be funds of the Trust legally
available for the payment of such dividends, and shall be payable quarterly in
arrears on each Dividend Payment Date, commencing on April 15, 2007.  Each such dividend shall be payable in
arrears to the holders of record of the Series K Preferred Shares, as they
appear on the share records of the Trust at the close of business on the
applicable record date (the “Dividend Record Date”), which shall be
fixed by the Board of Trustees and which shall be not more than 60 days nor
less than 10 days prior to each such Dividend Payment Date.  The Dividend Record Date for the dividend
payable on April 15, 2007 shall be
                          ,
2007.  Accrued and unpaid dividends for
any past Dividend Periods may be declared and paid at any time, without
reference to any regular Dividend Payment Date, to holders of record on such
date, which date shall not precede by more than 45 days nor less than 15 days
the payment date thereof, as may be fixed by the Board of Trustees.

 

(b)           Any dividend payable on the Series K
Preferred Shares for any partial Dividend Period shall be computed ratably on
the basis of twelve 30-day months and a 360-day year.  Holders of Series K Preferred Shares
shall not be entitled to any dividends in excess of full cumulative dividends,
as herein provided, on the Series K Preferred Shares.  No interest, or sum of money in lieu of
interest, shall be payable in respect of any dividend payment or payments on
the Series K Preferred Shares that may be in arrears.

 

(c)           So long as any of the Series K
Preferred Shares are outstanding, when dividends are not paid in full upon the
Series K Preferred Shares or any other class or series of Parity Shares,
or a sum sufficient for such payment is not set apart for payment, all
dividends declared upon the Series K Preferred Shares and any Parity
Shares shall be declared ratably in proportion to the respective amounts of
dividends accrued and unpaid on the Series K Preferred Shares and accrued
and unpaid on such Parity Shares.  Except
as set forth in the preceding sentence, unless dividends on the Series K
Preferred Shares equal to the full amount of accrued and unpaid dividends have
been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof has been or contemporaneously is set apart
for such payment, for all past dividends periods, no dividends shall be
declared or paid or set apart for payment by the Trust and no other
distribution of cash or other property may be declared or made, directly or
indirectly, by the Trust with respect to any Parity Shares.

 

(d)           So long as any of the Series K
Preferred Shares are outstanding, unless dividends equal to the full amount of
all accrued and unpaid dividends on the Series K Preferred Shares have
been paid, or declared and set apart for payment, for all past dividend
periods, no dividends (other than dividends or distributions paid in Junior
Shares or options, warrants or rights to subscribe for or purchase Junior
Shares) may be declared or paid or set apart for payment by the Trust and no
other distribution of cash or other property may be declared or made, directly
or indirectly, by the Trust with respect to any Junior Shares, nor shall any
Junior Shares be 

 

5

 

redeemed,
purchased or otherwise acquired (except for a redemption, purchase or other
acquisition of Common Shares made for purposes of an employee incentive or
benefit plan of the Trust or a subsidiary of the Trust) for any consideration
(or any monies be paid to or made available for a sinking fund for the
redemption of any such Junior Shares), directly or indirectly, by the Trust
(except by conversion into or exchange for Junior Shares, or options, warrants
or rights to subscribe for or purchase Junior Shares), nor shall any other cash
or other property be paid or distributed to or for the benefit of holders of
Junior Shares.

 

(e)           Notwithstanding the provisions of
this Section 3, the Trust shall not be prohibited from (i) declaring
or paying or setting apart for payment any dividend or distribution on any
Parity Shares or (ii) redeeming, purchasing or otherwise acquiring any Parity
Shares, in each case, if such declaration, payment, redemption, purchase or
other acquisition is necessary in order to maintain the continued qualification
of the Trust as a REIT under Section 856 of the Code.

 

4.             LIQUIDATION
PREFERENCE.

 

(a)           Upon any voluntary
or involuntary liquidation, dissolution or winding-up of the Trust, before any
payment or distribution by the Trust shall be made to or set apart for payment
to the holders of any Junior Shares, the holders of Series K Preferred
Shares shall be entitled to receive a liquidation preference of fifty dollars
($50.00) per Series K Preferred Share (the “Liquidation Preference”),
plus an amount equal to all accrued and unpaid dividends (whether or not earned
or declared) to the date of final distribution to such holders; but such
holders shall not be entitled to any further payment.  Until the holders of the Series K
Preferred Shares have been paid the Liquidation Preference in full, plus an
amount equal to all accrued and unpaid dividends (whether or not earned or
declared) to the date of final distribution to such holders, no payment will be
made to any holder of Junior Shares upon the liquidation, dissolution or
winding-up of the Trust.  If, upon any
liquidation, dissolution or winding-up of the Trust, the assets of the Trust,
or proceeds thereof, distributable among the holders of Series K Preferred
Shares shall be insufficient to pay in full the Liquidation Preference and
liquidating payments on any other shares of any class or series of Parity
Shares, then such assets, or the proceeds thereof, shall be distributed among
the holders of Series K Preferred Shares and any such other Parity Shares
ratably in the same proportion as the respective amounts that would be payable
on such Series K Preferred Shares and any such other Parity Shares if all
amounts payable thereon were paid in full. 
For the purposes of this Section 4, a voluntary or involuntary
liquidation, dissolution or winding-up of the Trust shall not include (i) a
consolidation or merger of the Trust with or into one or more other entities,
(ii) a sale or transfer of all or substantially all of the Trust’s assets,
or (iii) a statutory share exchange.

 

(b)           Upon any liquidation, dissolution or
winding-up of the Trust, after payment shall have been made in full to the
holders of Series K Preferred Shares and any Parity Shares, as provided in
Section 4(a) of this Article, any other series or class or classes of
Junior Shares shall, subject to the respective terms thereof, be entitled to
receive any and all assets remaining to be paid or distributed, and the holders
of the Series K Preferred Shares and any Parity Shares shall not be
entitled to share therein.

 

6

 

5.             REDEMPTION

 

(a)           Except as set forth in Section 5(b) of
this Article below or as set forth in Article VII of the Declaration
of Trust that is incorporated by reference herein (relating to share ownership
limitations in order to preserve REIT status), the Series K Preferred
Shares shall not be redeemable by the Trust prior to December     ,
2016.  On or after December     ,
2016, the Trust, at its option, may redeem Series K Preferred Shares, in
whole or from time to time in part, at the Redemption Price.

 

(b)           In the event of a redemption of Series K
Preferred Shares, if the Redemption Date occurs after a Dividend Record Date
and on or prior to the related Dividend Payment Date, the dividend payable on
such Dividend Payment Date in respect of such shares called for redemption
shall be payable on such Dividend Payment Date to the holders of record at the
close of business on such Dividend Record Date and shall not be payable as part
of the Redemption Price for such shares. 
If full cumulative dividends on all outstanding Series K Preferred
Shares have not been paid or declared and set apart for payment, no Series K
Preferred Shares may be redeemed unless all outstanding Series K Preferred
Shares are simultaneously redeemed and neither the Trust nor any Affiliate of
the Trust may purchase or acquire Series K Preferred Shares, otherwise
than pursuant to a purchase or exchange offer made on the same terms to all
holders of Series K Preferred Shares.

 

(c)           If
fewer than all the outstanding Series K Preferred Shares are to be
redeemed, the Trust will select those Series K Preferred Shares to be
redeemed pro rata in proportion to the numbers of Series K Preferred
Shares held by holders (with adjustment to avoid redemption of fractional
shares) or by lot or in such other manner as the Board of Trustees may determine.  If fewer than all Series K Preferred
Shares represented by any certificate (which may include a global certificate)
are redeemed, then a new certificate (including, if appropriate, a new global
certificate) representing the unredeemed Series K Preferred Shares shall
be issued without cost to the holders thereof.

 

(d)           If the Trust shall redeem Series K
Preferred Shares pursuant to this Section 5, notice of the redemption
shall be mailed by the Trust not less than 30 days nor more than 60 days prior
to the Redemption Date to each holder of record of the Series K Preferred
Shares to be redeemed (the “Redemption Notice”).  Such Redemption Notice shall be provided by
first class mail, postage prepaid, at such holder’s address as the same appears
on the share records of the Trust. 
Neither the failure to mail the Redemption Notice, nor any defect
therein or in the mailing thereof to any particular holder, shall affect the
sufficiency of the Redemption Notice or the validity of the proceedings for
redemption with respect to the other holders. 
A Redemption Notice which has been mailed in the manner herein provided
shall be conclusively presumed to have been duly given on the date mailed
whether or not the holder receives the Redemption Notice.  Each Redemption Notice shall state, as
appropriate: (i) the Redemption Date; (ii) the number of Series K
Preferred Shares to be redeemed; (iii) the manner in which Series K
Preferred Shares are to be surrendered, including the requisite form of
documentation for such surrender of Series K Preferred Shares to the
Trust; and (iv) the Redemption Price payable on such Redemption Date,
including, without limitation, a statement as to whether or not accrued and
unpaid dividends will be (x) payable as part of the Redemption Price, or
(y) payable on the 

 

7

 

next
Dividend Payment Date to the record holder at the close of business on the
relevant Record Date as described in the next succeeding sentence.  A Redemption Notice having been mailed as
aforesaid, from and after the Redemption Date (unless the Trust shall fail to
set apart for payment the amount of cash necessary to effect such redemption),
(i) dividends on the Series K Preferred Shares so called for
redemption shall cease to accrue on said shares, (ii) said shares shall no
longer be deemed to be outstanding, and (iii) all rights of the holders
thereof as holders of Series K Preferred Shares shall cease, except (a) the
right to receive the Redemption Price, without interest thereon, and (b) if
the Redemption Date for any Series K Preferred Shares occurs after any
Dividend Record Date and on or prior to the related Dividend Payment Date, the
full dividend payable on such Dividend Payment Date in respect of such Series K
Preferred Shares called for redemption shall be payable on such Dividend
Payment Date to the holders of record of such shares at the close of business
on the corresponding Dividend Record Date notwithstanding the prior redemption
of such shares.  The Trust’s obligation
to make available the cash necessary to effect such redemption in accordance
with the preceding sentence shall be deemed fulfilled if, on or before the
applicable Redemption Date, the Trust shall irrevocably deposit in trust with a
bank or trust company (which may not be an Affiliate of the Trust) that has, or
is an Affiliate of a bank or trust company that has, a capital and surplus of
at least $50,000,000, such amount of cash as is necessary for such redemption
plus, if such Redemption Date occurs after any Dividend Record Date and on or
prior to the related Dividend Payment Date, such amount of cash as is necessary
to pay the dividend payable on such Dividend Payment Date in respect of such
Series K Preferred Shares called for redemption, with irrevocable
instructions that such cash be applied to the redemption of the Series K
Preferred Shares so called for redemption and, if applicable, the payment of
such dividend.  No interest shall accrue
for the benefit of the holders of Series K Preferred Shares to be redeemed
on any cash so set aside by the Trust. 
Subject to applicable escheat laws, any such cash unclaimed at the end
of two years from the Redemption Date shall revert to the general funds of the
Trust, after which reversion the holders of Series K Preferred Shares so
called for redemption shall look only to the general funds of the Trust for the
payment of such cash.  As promptly as
practicable after the surrender in accordance with the Redemption Notice of any
such Series K Preferred Shares to be so redeemed (in the case of
certificated shares, properly endorsed or assigned for Transfer, if the Trust
shall so require and the Redemption Notice shall so state), such surrendered
Series K Preferred Shares shall be exchanged for cash (without interest
thereon) for which such Series K Preferred Shares have been redeemed in
accordance with such Redemption Notice.

 

6.             CONVERSION AT OPTION OF THE HOLDER.

 

Holders of Series K Preferred Shares shall have the
right to convert all or a portion of such shares into Common Shares, as
follows:

 

(a)           Subject
to and upon compliance with the provisions of this Section 6, a holder of
Series K Preferred Shares shall have the right, at such holder’s option,
at any time, to convert such shares, in whole or in part, into the number of
fully paid and nonassessable shares of authorized but previously unissued
Common Shares obtained by dividing (1) an amount equal to the aggregate
Liquidation Preference of the Series K Preferred Shares to be converted by
(2) an amount equal to (A) the Calculation Price multiplied by (B) 1.25.  Such conversion shall be caused by the
surrender of such shares to be converted, such surrender to be made in the
manner 

 

8

 

provided in Section 6(b) of this Article.

 

(b)           In
order to exercise the conversion right, the holder of each Series K
Preferred Share to be converted shall surrender the certificate representing
such shares, duly endorsed or assigned to the Trust or in blank, at the office
of the Transfer Agent, accompanied by written notice to the Trust that the
holder thereof elects to convert such Series K Preferred Shares.  Unless the shares issuable on conversion are
to be issued in the same name as the name in which such Series K Preferred
Shares are registered, each share surrendered for conversion shall be
accompanied by instruments of transfer, in form reasonably satisfactory to the
Trust, duly executed by the holder or such holder’s duly authorized attorney,
and an amount sufficient to pay any transfer or similar tax (or evidence
reasonably satisfactory to the Trust demonstrating that such taxes have been
paid) as required by Section 6(j) of this Article.  As promptly as practicable after the
surrender of certificates for Series K Preferred Shares as aforesaid, the
Trust shall issue and shall deliver at such office to such holder, or send on
such holder’s written order, a certificate or certificates for the number of
full Common Shares issuable upon the conversion of such Series K Preferred
Shares in accordance with provisions of this Section 6, and any fractional
interest in respect of a Common Share arising upon such conversion shall be
settled as provided in Section 6(c) of this Article.  If all Series K Preferred Shares
evidenced by any certificate are not converted, the Trust shall issue and
deliver at such office to such holder a certificate for the remaining Series K
Preferred Shares not converted.  Each
conversion shall be deemed to have been effected immediately prior to the close
of business on the date on which the certificates for Series K Preferred
Shares shall have been surrendered and such notice received by the Trust as
aforesaid, and the Person or Persons in whose name or names any certificate or
certificates for Common Shares shall be issuable upon such conversion shall be
deemed to have become the holder or holders of record of the shares represented
thereby at such time on such date unless the share transfer books of the Trust
shall be closed on that date, in which event such Person or Persons shall be
deemed to have become such holder or holders of record at the close of business
on the next succeeding day on which such transfer books are open, provided that
such closure of the share transfer books shall not delay the date on which such
Person shall become a holder of such shares by more than two Business Days.

 

(c)           No
fractional Common Share or scrip representing fractions of a Common Share shall
be issued upon conversion of the Series K Preferred Shares.  Instead of any fractional interest in a
Common Share that would otherwise be deliverable upon the conversion of Series K
Preferred Shares, the Trust shall pay to the holder of such share an amount in
cash based upon the Current Market Price of the Common Shares on the Trading
Day immediately preceding the date of conversion.  If more than one share shall be surrendered
for conversion at one time by the same holder, the number of full Common Shares
issuable upon conversion thereof shall be computed on the basis of the
aggregate number of Series K Preferred Shares so surrendered.

 

(d)           If
the Trust shall be a party to any transaction (including without limitation a
merger, consolidation, statutory share exchange or reclassification of the
Common Shares (each of the foregoing being referred to herein as a
“Transaction”)), in each case as a result of which Common Shares shall be
converted into the right to receive shares, securities or other property
(including cash or any combination thereof), each Series K Preferred Share
which is not converted into the right to receive shares, securities or other
property in connection with such 

 

9

 

Transaction shall thereupon be convertible into the kind
and amount of shares, securities and other property (including cash or any
combination thereof) receivable upon such consummation by a holder of that
number of Common Shares into which one Series K Preferred Share was
convertible immediately prior to such Transaction.  The Trust shall not be a party to any
Transaction unless the terms of such Transaction are consistent with the
provisions of this Section 6(d), and it shall not consent or agree to the
occurrence of any Transaction until the Trust has entered into an agreement
with the successor or purchasing entity, as the case may be, for the benefit of
the holders of the Series K Preferred Shares that will contain provisions
enabling the holders of the Series K Preferred Shares that remain
outstanding after such Transaction to convert into the consideration received
by holders of Common Shares in accordance with the conversion rate established
pursuant to Section 6(a) of this Article, as it may be adjusted
pursuant to this Section 6.  The
provisions of this Section 6(d) shall similarly apply to successive Transactions.

 

(e)           If
there shall be any reclassification of the Common Shares or any consolidation
or merger to which the Trust is a party and for which approval of any
shareholders of the Trust is required, or a statutory share exchange, or the
voluntary or involuntary liquidation, dissolution and winding up of the Trust,
then the Trust shall cause to be mailed to each holder of Series K
Preferred Shares at such holder’s address as shown on the records of the Trust,
as promptly as possible, but at least 15 days prior to the applicable date
hereinafter specified, a notice stating the date on which such
reclassification, consolidation, merger, statutory share exchange or
liquidation, dissolution and winding up is expected to become effective, and
the date as of which it is expected that holders of Common Shares of record
shall be entitled to exchange their Common Shares for securities or other
property, if any, deliverable upon such event. 
Failure to give or receive such notice or any defect therein shall not
affect the legality or validity of the proceedings described in this Section 6.

 

(f)            (i)   In the event the Trust should at any time or
from time to time after the date of issuance of the Series K Preferred
Shares fix a record date for the effectuation of a split or subdivision of the
outstanding Common Shares or the determination of holders of Common Shares
entitled to receive a dividend or other distribution payable in additional
Common Shares without payment of any consideration by such holder for the additional
Common Shares, then, as of such record date (or the date of such dividend
distribution, split or subdivision if no record date is fixed), the Calculation
Price shall be appropriately decreased so that the number of Common Shares
issuable on conversion of each Series K Preferred Share shall be increased
in proportion to such increase of outstanding Common Shares.  If the number of Common Shares outstanding at
any time after the date of issuance of the Series K Preferred Shares is
decreased by a combination of the then outstanding Common Shares, then,
following the record date of such combination (or the date of such combination
if no record date is fixed), the Calculation Price for the Series K
Preferred Shares shall be appropriately increased so that the number of shares
of Common Stock issuable on conversion of each Series K Preferred Share
shall be decreased in proportion to such decrease in outstanding Common
Shares.  Whenever the Calculation Price
is adjusted as herein provided, the Trust shall promptly file with the Transfer
Agent an officer’s certificate setting forth the Calculation Price after such
adjustment and setting forth a brief statement of the facts requiring such
adjustment which certificate shall be conclusive evidence of the correctness of
such adjustment absent manifest error. 
Promptly after delivery of

 

10

 

 

such certificate, the Trust shall prepare a notice of
such adjustment setting forth the adjusted Calculation Price and the effective
date such adjustment becomes effective and shall mail such notice of such
adjustment to each holder of Series K Preferred Shares at such holder’s
last address as shown on the share records of the Trust.

 

(ii)   In the
event the Trust at any time, or from time to time, shall make or issue, or fix
a record date for the determination of holders of Common Shares entitled to
receive, a dividend or other distribution payable in securities of the Trust
other than Common Shares, then and in each such event, provision shall be made
so that the holders of Series K Preferred Shares shall receive upon
conversion thereof, in addition to the number of Common Shares receivable
thereupon, the amount of securities of the Trust which they would have received
had their Series K Preferred Shares been converted into Common Shares on
the date of such event and had thereafter, during the period from the date of
such event to and including the date of conversion, retained such securities
receivable by them as aforesaid during such period, giving application to all
adjustments called for during such period under this Section 6(f) with
respect to the rights of the holders of Series K Preferred Shares.

 

(g)           In
any case in which Section 6(f) of this Article provides that an
adjustment shall become effective on the day next following the record date for
an event, the Trust may defer until the occurrence of such event (A) issuing
to the holder of any Series K Preferred Share converted after such record
date and before the occurrence of such event the additional Common Shares
issuable upon such conversion by reason of the adjustment required by such
event over and above the Common Shares issuable upon such conversion before
giving effect to such adjustment and (B) paying to such holder any amount
of cash in lieu of any fraction pursuant to Section 6(c) of this
Article; provided, however, that the holder of such Series K
Preferred Shares shall be entitled to such additional Common Shares and cash,
as applicable, upon such event.

 

(h)           There
shall be no adjustment of the Calculation Price in case of the issuance of any
capital shares of the Trust, including issuance in connection with a
reorganization, acquisition or other similar transaction except as specifically
set forth in this Section 6.  If any
action or transaction would require adjustment of the Calculation Price
pursuant to more than one paragraph of this Section 6, only one adjustment
shall be made and such adjustment shall be the amount of adjustment that has
the highest absolute value to the holder of Series K Preferred Shares.

 

(i)            The
Trust shall at all times reserve and keep available, free from preemptive
rights, out of the aggregate of its authorized but unissued Common Shares
solely for the purpose of effecting conversion of the Series K Preferred
Shares, the full number of Common Shares deliverable upon the conversion of all
outstanding Series K Preferred Shares not theretofore converted into
Common Shares.  For purposes of this
Section 6(i), the number of Common Shares that shall be deliverable upon
the conversion of all outstanding Series K Preferred Shares shall be
computed as if at the time of computation all such outstanding shares were held
by a single holder.  The Trust covenants
that any Common Shares issued upon conversion of the Series K Preferred
Shares shall be validly issued, fully paid and non-assessable.  The Trust shall list the Common Shares
required to be delivered upon conversion of the Series K Preferred Shares,
prior to such delivery, upon each national securities exchange, if any, upon
which the 

 

11

 

outstanding Common Shares are listed at the time of such
delivery.

 

(j)            The
Trust will pay any and all documentary stamp or similar issue or transfer taxes
payable in respect of the issue or delivery of Common Shares or other
securities or property on conversion of Series K Preferred Shares pursuant
hereto; provided, however, that the Trust shall not be required
to pay any tax that may be payable in respect of any transfer involved in the
issue or delivery of Common Shares or other securities or property in a name
other than that of the holder of the Series K Preferred Shares to be
converted, and no such issue or delivery shall be made unless and until the
Person requesting such issue or delivery has paid to the Trust the amount of
any such tax or established, to the reasonable satisfaction of the Trust, that
such tax has been paid.

 

7.             STATUS OF
REACQUIRED SHARES.

 

All
Series K Preferred Shares that have been issued and are reacquired in any
manner by the Trust (including, without limitation, Series K Preferred
Shares which are redeemed) shall be returned to the status of authorized but
unissued Preferred Shares, without designation as to series.  The Trust may also retire any unissued Series K
Preferred Shares, and such shares shall then be restored to the status of
authorized but unissued Preferred Shares without designation as to series.  In no event shall any retired Series K
Preferred Shares, or any other retired Preferred Shares, be reissued as Series K
Preferred Shares.

 

8.             RANKING.

 

The Series K Preferred Shares will, with respect to
dividend rights and rights upon the liquidation, dissolution or winding-up of
the Trust, rank:

 

(a)           prior or senior to the Common Shares
and any other class or series of the Trust’s Equity Shares authorized or
designated in the future if the holders of Series K Preferred Shares shall
be entitled to the receipt of dividends or of amounts distributable upon
liquidation, dissolution or winding-up in preference or priority to the holders
of shares of such class or series (“Junior Shares”);

 

(b)           on a parity with the Series G
Preferred Shares, Series H Preferred Shares, Series J Preferred
Shares and any other class or series of the Trust’s Equity Shares authorized or
designated in the future if, by the terms of such class or series, the holders
of such class or series of securities and the Series K Preferred Shares
shall be entitled to the receipt of dividends and of amounts distributable upon
liquidation, dissolution or winding-up in proportion to their respective
amounts of accrued and unpaid dividends per share or liquidation preferences,
without preference or priority of one over the other (“Parity Shares”);
and

 

(c)           junior to any class or series of
Equity Shares authorized or designated in the future if, by the terms of such
class or series, the holders of such class or series shall be entitled to the
receipt of dividends and amounts distributable upon liquidation, dissolution or
winding-up in preference or priority to the holders of the Series K
Preferred Shares (“Senior Shares”).

 

12

 

9.             VOTING.

 

(a)           If and whenever six (6) quarterly
dividends (whether or not consecutive) payable on the Series K Preferred
Shares or any series or class of Parity Shares shall be in arrears (which
shall, with respect to any such quarterly dividend, mean that any such dividend
has not been paid in full), whether or not declared, the number of Trustees
then constituting the Board of Trustees shall be increased by two (if not
already increased by reason of similar types of provisions with respect to
Parity Shares of any other class or series which is entitled to similar voting
rights (the “Voting Parity Shares”); without limiting the foregoing, the
Series G Preferred Shares, Series H Preferred Shares and Series J
Preferred Shares shall be deemed to be entitled to voting rights similar to the
Series K Preferred Shares) and the holders of Series K Preferred
Shares, together with the holders of all other Voting Parity Shares then
entitled to exercise similar voting rights, voting as a single class regardless
of series or class, shall be entitled to elect the two additional Trustees to
serve on the Board of Trustees at any annual meeting of shareholders or at a
special meeting of the holders of the Series K Preferred Shares and the
Voting Parity Shares called as hereinafter provided.  At any time when such right to elect Trustees
separately shall have been so vested in the holders of Series K Preferred
Shares and the Voting Parity Shares, if applicable, the Secretary of the Trust
may, and upon the written request of the holders of record of not less than 20%
of the total number of Series K Preferred Shares and Voting Parity Shares
(addressed to the Secretary at the principal office of the Trust) shall, call a
special meeting of the holders of the Series K Preferred Shares and of the
Voting Parity Shares for the election of the two Trustees to be elected by them
as herein provided, such call to be made by notice similar to that provided in
the Bylaws of the Trust for a special meeting of the shareholders or as
required by law.  Such special meeting
shall be held, in the case of such written request, within 90 days after the
delivery of such request, provided that the Trust shall not be required to call
such a special meeting if such request is received less than 120 days before
the date fixed for the next ensuing annual meeting of shareholders and the
holders of the Series K Preferred Shares and Voting Parity Share are
offered the opportunity to elect such Trustees at such annual meeting.  The Trustees elected at any such special
meeting shall hold office until the next annual meeting of the shareholders or
special meeting held in lieu thereof if such office shall not have previously
terminated as provided herein.  If any
vacancy shall occur among the Trustees elected by the holders of the Series K
Preferred Shares and the Voting Parity Shares by reason of death, resignation
or disability, a successor shall be elected by the Board of Trustees, upon the
nomination of the then-remaining Trustee elected by the holders of the Series K
Preferred Shares and the Voting Parity Shares or the successor of such
remaining Trustee, to serve until the next annual meeting of the shareholders
or special meeting held in place thereof if such office shall not have previously
terminated as provided above.  Whenever
all arrears in dividends on the Series K Preferred Shares and the Voting
Parity Shares then outstanding shall have been paid and dividends thereon for
the current Dividend Period shall have been declared and paid, or declared and
set apart for payment, then the right of the holders of the Series K
Preferred Shares and the Voting Parity Shares to elect such additional two
Trustees shall cease (but subject always to the same provision for the vesting
of such voting rights in the case of any similar future arrearages), and the
terms of office of all persons elected as Trustees by the holders of the Series K
Preferred Shares and the Voting Parity Shares shall forthwith terminate and the
number of Trustees constituting the Board of Trustees shall be reduced
accordingly.

 

13

 

(b)           So long as any Series K
Preferred Shares are outstanding, in addition to any other vote or consent of
shareholders required by law or by the Declaration of Trust of the Trust, the
affirmative vote or consent of at least sixty-six and two-thirds percent
(66-2/3%) of the votes entitled to be cast by the holders of the outstanding
Series K Preferred Shares voting as a single class with the holders of all
other classes or series of Voting Parity Shares entitled to vote on such
matters, given in person or by proxy, either in writing without a meeting or by
vote at any meeting called for the purpose, shall be necessary for effecting or
validating:

 

(i)            Any amendment,
alteration or repeal of any of the provisions of, or the addition of any
provision to, these Articles Supplementary, the Declaration of Trust or the
By-Laws of the Trust that materially adversely affects the voting powers,
rights or preferences of the holders of the Series K Preferred Shares; provided,
however, that the amendment of or supplement to the provisions of the
Declaration of Trust to authorize, create, increase or decrease the authorized
amount of, or to issue Junior Shares, Series K Preferred Shares or any
class of Parity Shares shall not be deemed to materially adversely affect the
voting powers, rights or preferences of the holders of Series K Preferred
Shares; or

 

(ii)           The authorization,
creation of, increase in the authorized amount of, or issuance of shares of any
class or series of Senior Shares or any security convertible or exchangeable
into shares of any class or series of Senior Shares (whether or not such class
or series of Senior Shares is currently authorized);

 

provided, however,
that no such vote of the holders of Series K Preferred Shares shall be
required if, at or prior to the time when such amendment, alteration or repeal
is to take effect, or when the issuance of any such Senior Shares or
convertible or exchangeable security is to be made, as the case may be,
provision is made for the redemption of all outstanding Series K Preferred
Shares to the extent such redemption is authorized by Section 5 of this
Article.

 

For
purposes of the foregoing provisions and all other voting rights under these
Articles Supplementary, each Series K Preferred Share shall have one (1) vote
per share, except that when any other class or series of preferred shares of
the Trust shall have the right to vote with the Series K Preferred Shares
as a single class on any matter, then the Series K Preferred Shares and
such other class or series shall have with respect to such matters one half of
one vote per $50.00 of stated liquidation preference.  Except as otherwise required by applicable
law or as set forth herein or in the Declaration of Trust, the Series K
Preferred Shares shall not have any relative, participating, optional or other
special voting rights and powers other than as set forth herein, and the
consent of the holders thereof shall not be required for the taking of any
action by the Trust.

 

10.          RECORD HOLDERS.

 

The
Trust and the Transfer Agent may deem and treat the record holder of any Series K
Preferred Share as the true and lawful owner thereof for all purposes, and
neither the Trust nor the Transfer Agent shall be affected by any notice to the
contrary.

 

14

 

11.          RESTRICTIONS ON OWNERSHIP AND TRANSFER; REMEDIES.

 

Article VII
of the Declaration of Trust sets forth certain ownership and transfer
restrictions relating to the Equity Shares, including the Series K
Preferred Shares.  Article VII of
the Declaration of Trust is hereby incorporated by reference herein.

 

FOURTH: These Articles Supplementary have been duly
adopted by all necessary action on the part of the Trust.

 

15

 

IN WITNESS WHEREOF, the Trust has caused these presents to be signed in its name and on its
behalf by its President and Chief Executive Officer and witnessed by its Secretary,
Vice President and General Counsel on December     ,
2006.

 

	
  WITNESS:

  	
   

  	
  CORPORATE
  OFFICE PROPERTIES TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name: 

  	
  Karen M. Singer

  	
   

  	
  Name: 

  	
  Randall M. Griffin

  
	
  Title:

  	
  Secretary, Vice President & General Counsel

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  

 

THE UNDERSIGNED, Secretary, Vice President and General Counsel of CORPORATE OFFICE
PROPERTIES TRUST, hereby acknowledges in the name and on behalf of said Trust
the foregoing Articles Supplementary to be the official act of said Trust and
hereby certifies that the matters and facts set forth herein with respect to
the authorization and approval thereof are true in all material respects under
the penalties of perjury.

 

 

	
   

  	
   

  	
   

  
	
  Name: 

  	
  Karen M. Singer

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Secretary, Vice President and General Counsel

  	
   

  	
   

  	
   

  

 

 

Exhibit B

 

REGISTRATION RIGHTS AGREEMENT

 

Dated December       ,
2006

 

by and among

 

CORPORATE OFFICE PROPERTIES TRUST

 

and the

 

JOSEPH J. CREDIT, AS AGENT FOR
THE HOLDERS

 

OF THE COMMON STOCK OF NOTTINGHAM
VILLAGE, INC.

 

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement, dated as of December     ,
2006 (the “Agreement”), between Corporate Office Properties Trust, a Maryland
real estate investment trust (the “Company”), and
Joseph J. Credit, as agent (the “Agent”) for,
pursuant to a power of attorney given by, each of the persons listed on Schedule
I hereto (each an “Initial  Holder” and, collectively, the “Initial
Holders”).

 

Pursuant
to the Purchase Agreement (as defined herein), the holders of the Class A
common stock, par value $10.00 per share and the Class B common stock, par
value $1.00 per share (collectively, the “Nottingham Common Stock”),
of Nottingham Village, Inc., a Maryland corporation (“Nottingham
Village”), will receive from the Company in the Merger (as defined
herein), as consideration for their shares of Nottingham common Stock,
consideration consisting of (i) Series K convertible preferred shares
of beneficial interest, par value $0.01 per share, of the Company (the “Series K Preferred Shares”) and (ii) common shares
of beneficial interest, par value $0.01 per share, of the Company (the “Common Shares” and, collectively with the Series K
Preferred Shares, the “Shares”).  The Series K Preferred Shares will be
convertible in accordance with the terms and conditions set forth in the
Articles Supplementary fixing the terms of the Series K Preferred Shares
(the “Articles Supplementary”), into Common
Shares.

 

To
induce Nottingham Village to enter into the Purchase Agreement, the Company has
agreed to provide the registration rights set forth in this Agreement, whereby
the Company agrees with the Agent, for the benefit of the Holders (as defined
herein) from time to time of the Shares, 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.

 

“Additional
Shares” means Common Shares or other securities of the Trust issued
in respect of the Shares by reason of or in connection with any dividend,
distribution, split, purchase in any rights offering or in connection with any
exchange for or replacement of such shares or any combination of shares,
recapitalization, merger or consolidation, or any other equity securities
issued pursuant to any other pro rata distribution with respect to the Common
Shares.

 

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

 

“Affiliate” shall have the meaning specified in Rule 405
under the Act or any successor rule promulgated by the Commission under
the Act, and the terms “controlling”
and “controlled” shall have meanings
correlative thereto.

 

 

“Automatic Shelf Registration Statement” shall mean a
registration statement on Form S-3 filed by a Well-Known Seasoned Issuer
which shall become effective upon filing thereof pursuant to General Instruction
I.D of 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 have the meaning set forth in the
Purchase Agreement.

 

“Commission” shall mean the Securities and Exchange
Commission.

 

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

 

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

 

“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.

 

“Free Writing Prospectus” shall have the meaning specified in
Rule 405 under the Act or any successor rule promulgated by the Commission
under the Act.

 

“Holder” or “Holders”
shall mean the Initial Holders and/or any Person who, or that, has received
directly or indirectly from an Initial Holder, pursuant to a Transfer, any of
such Initial Holder’s Shares; provided, that such Transfer is
permissible pursuant to federal and state securities laws, the Company’s
Declaration of Trust and the Articles Supplementary.

 

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

 

“Issuer Free Writing Prospectus” shall have the meaning
specified in Rule 433 under the Act or any successor rule promulgated
by the Commission 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 Registrable Securities.

 

“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.

 

2

 

“Merger” shall mean the merger of Nottingham Village with and
into Merger Subsidiary, as contemplated by the Purchase Agreement.

 

“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 hereto as Exhibit A.

 

“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.

 

“Nottingham Common Stock” shall have the meaning set forth in
the preamble hereto.

 

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

 

“Operating Partnership” shall mean Corporate Office
Properties, L.P., a Delaware limited partnership.

 

“Person” shall mean an individual,
partnership, corporation, limited liability company, trust or unincorporated
organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in the Shelf
Registration Statement, including a prospectus that omits information 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 mean that certain Purchase
Agreement and Agreement and Plan of Merger, dated as of November     ,
2006, by and among the Company, the Operating Partnership, W&M Business
Trust, a Maryland business trust (“Merger Subsidiary”)
and Nottingham Village, relating to the merger of Nottingham Village with and
into Merger Subsidiary, with Merger Subsidiary continuing as the surviving
entity in such merger.

 

“Registrable Securities” shall mean Common Shares issued to
the Initial Holders in connection with the Merger and the Common Shares
issuable upon conversion by the Holders of the Series K Preferred Shares
issued to the Initial Holders in connection with the Merger, in each case, upon
original issuance and at all times subsequent thereto, including upon the
transfer thereof by the Initial Holders and any subsequent Holders, including
any Additional Shares, other than any such Common Shares 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 Expenses” shall mean any and all expenses
incident to performance of or compliance by the Company with this Agreement,
including without limitation: (i) all Commission or National Association
of Securities Dealers, Inc. (the “NASD”)
registration and 

 

3

 

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 and of the independent certified public accountants of
the Company, 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 in
connection with the Shelf Registration Statement.

 

“Series K Preferred Shares” shall have the meaning set
forth in the preamble hereto.

 

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

 

“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 Registrable Securities 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.

 

“Transfer”, “transferring” or “transferred”
shall mean any sale or other disposition of any Registrable Securities that
would constitute a sale thereof under the Securities Act.

 

“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 or any
successor rule promulgated by the Commission under the Act.

 

2.             Shelf Registration.  (a)  The Company shall as promptly as
practicable (but in no event more than 65 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.

 

4

 

 

(b)           At the date hereof: (A) the Company satisfies all of
the requirements of the Securities Act for use of Form S-3 for the
registration of the Registrable Securities contemplated hereby; (B) the
Company is a WKSI, including not having been and not being an “ineligible
issuer,” as defined in Rule 405 of the Securities Act; (C) the
Registrable Securities are eligible for registration by the Company on an
Automatic Shelf Registration Statement; and (D) the Company has not
received from the Commission any notice pursuant to Rule 401(g)(2) of
the Securities Act objecting to the use of the Automatic Shelf Registration
Statement form.

 

(c)           If the Shelf Registration Statement is not an Automatic
Shelf Registration Statement, the Company shall use its best commercially
practicable efforts to cause the Shelf Registration Statement to become or be
declared effective under the Act as promptly as practicable but in no event
later than 120 days after the Closing Date.

 

(d)           The Company shall use its best commercially practicable
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
date upon which there are no Registrable Securities outstanding.

 

(e)           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.

 

(f)            No later than 30 days after the Closing Date, each Holder
of Registrable Securities agrees to deliver, or to cause to be delivered on its
behalf by the Agent, a Notice and Questionnaire and such other information as
the Company may reasonably request in writing, if any.

 

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

 

(a)           The Company shall:

 

(i)            furnish to the Agent and his counsel, not less than three
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
best commercially practicable efforts to reflect in each such document, when so
filed with the Commission, such comments as the Agent reasonably proposes; and

 

5

 

(ii)           include information regarding the 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 Agent and the Notice Holders,
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 best commercially practicable
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 

 

6

 

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 the Agent, 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 Holders 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 

 

7

 

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 use its best commercially practicable
efforts to prepare and file in a timely manner all documents and reports
required by the Exchange Act and, to the extent the Company’s obligation to
file such reports pursuant to Section 13(a) or 15(d) of the
Exchange Act for the term of this Agreement. 
The Company shall comply with all applicable rules and regulations
of the Commission and shall make generally available to its securityholders (by
virtue of filing its Annual Report on Form 10-K with the Securities and
Exchange Commission on its EDGAR filing system or otherwise) 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 may from time to time be required by the Act to be included 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)            The Company shall use its best commercially practicable
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 shall 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). 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 shall indemnify and hold harmless each Holder
of Registrable Securities, 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 

 

8

 

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 5(a) shall be in addition to any
liabilities that the Company may otherwise have.

 

The
Company also agrees to indemnify as provided in this Section 5(a) or
contribute as provided in Section 5(e) hereof to Losses of each
underwriter (as defined in the Act), 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 selling
Holders provided in this Section 5(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, each of its trustees, each of its
officers who sign the Shelf Registration Statement and each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act (i) to the same extent as the foregoing indemnity from the Company 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 

 

9

 

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 5 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 5, 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 5 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 5 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 

 

10

 

party shall have requested an indemnifying party to
reimburse the indemnified party for reasonable fees and expenses of counsel as
contemplated by Section 5(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 5 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, 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 5(e)(i) above
but also the relative fault of the Company, 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 fault of the Company, 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, 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 and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 5(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 5(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 5(c),
any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim.

 

11

 

Notwithstanding
the provisions of this Section 5, in no event will (i) any Holder be
required to undertake liability to any person under this Section 5 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 5(e) are
several and not joint.

 

(f)            The provisions of this Section 5 shall remain in
full force and effect, regardless of any investigation made by or on behalf of
any Holder or the Company or any of the officers, directors, employees, agents
or controlling persons referred to in Section 5 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, which consent shall
not be unreasonably withheld.

 

(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.             No Inconsistent Agreements.  The Company has not entered into, and agrees
not to enter into, any agreement with respect to its securities that is
inconsistent with the registration rights granted to the Holders herein.

 

8.             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 144(c) 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 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 

 

12

 

provided by Rules 144 (including, without
limitation, the requirements of Rule 144A(c)).  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 8 shall be deemed to require the Company to register any of
its securities pursuant to the Exchange Act.

 

9.             Listing.  The Company shall use its best commercially
practicable efforts to (i) obtain approval of the listing of the
Registrable Securities on the New York Stock Exchange and (ii) maintain
the approval of the Common Shares for listing on the New York Stock Exchange.

 

10.          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.

 

11.          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 Agent, initially at the address or addresses set
forth in the Purchase Agreement; and

 

(c)           if to the Company, 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
Agent, Holders or the Company by notice to the other parties may designate
additional or different addresses for subsequent notices or communications.

 

12.          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 agrees 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.

 

13.          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 thereto, subsequent Holders of Common Shares, and the
indemnified persons referred to in Section 5 hereof.  The Company hereby agrees 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.

 

13

 

14.          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.

 

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

 

16.          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.

 

17.          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.

 

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
and the with the Agent, for the benefit of the Holders.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  CORPORATE
  OFFICE PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

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

 

Joseph
J. Credit, as agent for, pursuant to a power of attorney given by, each of the
persons listed on Schedule I hereto.

 

14

 

 

EXHIBIT A (to Exhibit B)

 

CORPORATE OFFICE PROPERTIES TRUST

 

Selling Shareholder Notice and Questionnaire

 

Corporate
Office Properties Trust (the “Company”) will
file shortly with the United States Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (the “Shelf Registration Statement”).  The Shelf Registration Statement relates to
the registration and resale under the Securities Act of 1933, as amended (the “Securities Act”), of the Company’s common shares of beneficial
interest, $0.01 par value (“Common Shares”),
issued pursuant to that certain Purchase Agreement and Agreement and Plan of
Merger, dated as of November     , 2006, by and among
the Company, Corporate Office Properties, L.P., a Delaware limited partnership,
W&M Business Trust, a Maryland business trust (“Merger
Subsidiary”) and Nottingham Village, relating to the merger (the “Merger”) of Nottingham Village, Inc., a Maryland
corporation (“Merger Subsidiary”), with and
into Merger Subsidiary, with Merger Subsidiary continuing as the surviving
entity in such merger.  The filing of the
Shelf Registration Statement will be made in accordance with the Registration
Rights Agreement (the “Registration Agreement”),
dated as of
                    ,
2006, between the Company and Joseph J. Credit, as agent (the “Agent”) for, pursuant to a power of attorney given by, the
holders of the Class A and Class B common stock of Nottingham Village
(the “Selling Shareholders”).

 

Under
the Registration Agreement, the Company has agreed to include in the Shelf
Registration Statement the Common Shares initially issued to the Selling
Shareholders in connection with the Merger and the Common Shares issuable upon
conversion by the Holders of the Series K Preferred Shares of Beneficial Interest
of the Company issued to the Holders in connection with the Merger.  Such Common Shares are referred to as the “Registrable Securities.”

 

Certain
legal consequences arise from being named as a selling shareholder in the Shelf
Registration Statement and related Prospectus. 
Accordingly, holders and beneficial owners of Registrable Securities are
advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling shareholder in the Shelf Registration
Statement and related Prospectus.

 

 

ACKNOWLEDGEMENT

 

The
undersigned holder (the “Selling Shareholder”)
of Registrable Securities understands that the Company is requesting submission
of this Notice and Questionnaire in order to facilitate compliance with
applicable law and regulations.  The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire.

 

The
Selling Shareholder also acknowledges that, in the event of a transfer of
Registrable Securities (other than pursuant to a sale under the Shelf
Registration Statement), including to donees, pledgees and other successors in
interest, the Company will require such transferee to execute a Notice and
Questionnaire and such other documentation to insure compliance with applicable
law and regulations.

 

The
Selling Shareholder hereby provides the following information to the Company
and represents and warrants that such information is accurate and complete:

 

 

NOTICE AND QUESTIONNAIRE

 

	
  1.

  	
  (a)

  	
  Full legal name of Selling Shareholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Full legal name of registered holder (if not the same
  as (a) above) of Registrable Securities listed in Item (3) below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Full legal name of DTC Participant (if applicable and
  if not the same as (b) above) through which Registrable Securities
  listed in Item (3) below are held: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  State whether the Selling Shareholder is a
  publicly-held entity or a subsidiary of a publicly-held entity (i.e., an
  entity that has a class of securities registered under the Securities
  Exchange Act of 1934, as amended):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If a subsidiary, please identify the publicly-held
  parent entity:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  State whether the Selling Shareholder is an investment
  company, or a subsidiary of an investment company, registered under the
  Investment Company Act of 1940:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If a subsidiary, please identify the investment
  company parent entity:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  If you are not a natural person, and if you answered “No” to
  questions (d) and (e),
  state the number of natural persons who have or share voting or investment
  control over the Registrable Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If your answer is 3 or fewer, please identify those
  natural persons:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Please note that the SEC requires that these natural persons be named
  in the prospectus.

  

 

 

	
  2.

  	
  Beneficial Ownership of Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
  Except as set forth below in this Item (2), the undersigned Selling
  Shareholder does not beneficially own any Common Shares or Common Shares
  issuable upon exercise or conversion of any Company securities.

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Number of Common Shares purchased under the Purchase
  Agreement and beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Number of Common Shares beneficially owned other
  than shares received under the Merger Agreement:  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Beneficial Ownership of other securities of the
  Company:

  
	
   

  	
   

  	
   

  
	
   

  	
  Except as set forth below in this Item (3), the undersigned Selling
  Shareholder  is not the beneficial or
  registered owner of any Common Shares or any other security of the Company,
  other than the Common Shares listed above in Item (2).

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  
	
   

  	
   

  
	
   

  	
   

  
	
  4.

  	
  Relationship with the Company:

  
	
   

  	
   

  
	
   

  	
  Except as set forth below, neither the Selling Shareholder nor any of
  its affiliates, officers, directors or principal equity holders (5% or more)
  has held any position or office or has had any other material relationship
  with the Company (or its predecessors or affiliates) during the past three
  years.

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  
	
   

  	
   

  
	
   

  	
   

  
	
  5.

  	
  (a)

  	
  State whether the undersigned Selling Shareholder is a
  registered broker-dealer.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  

 

 

	
   

  	
  (b)

  	
  State whether the undersigned Selling Shareholder
  received the Registrable Securities as compensation for underwriting
  activities and, if so, provide a brief description of the transaction(s) involved.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  State whether the undersigned Selling Shareholder is
  an affiliate of a registered broker-dealer and if so, list the name(s) of
  the broker-dealer affiliate(s).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the answer is “Yes,” you must answer question (d) below.

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  If the undersigned Selling Shareholder is an affiliate
  of a registered broker-dealer:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  Did the undersigned Selling Shareholder purchase the
  Registrable Securities in the ordinary course of business?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the answer is “No,” to question (i) state any
  exceptions below:

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  (ii)

  	
  At the time of the purchase of the Registrable
  Securities, did the undersigned Selling Shareholder have any agreements or
  understandings, directly or indirectly, with any person to distribute the
  Registrable Securities?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes o             No
  o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the answer is “Yes,” to question (ii) state
  any exceptions below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

If the answer is “No” to question (i) or “Yes” to question (ii),
you will be named as an underwriter in the prospectus relating to the
Registrable Securities.

 

By signing below, the Selling Shareholder consents to
the disclosure of the information contained herein in its answers to Items (1) through
(8) above and the inclusion of such information in the Shelf Registration
Statement and related Prospectus.  The Selling
Shareholder understands that such information will be relied upon by the
Company in connection with the preparation of the Shelf Registration Statement
and related Prospectus.

 

In accordance with the Selling Shareholder’s obligation
under the Registration Agreement to provide such information regarding its
ownership of shares as is required for preparation and filing of the Shelf
Registration Statement, the Selling Shareholder agrees to promptly notify the
Company of any inaccuracies or changes in the information provided herein which
may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains in effect and to provide any additional
information as the Company reasonably may request.

 

 

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

 

	
  Dated:

  	
   

  	
   

  	
  Selling Shareholder

  
	
   

  	
  (Print/type full legal name of beneficial owner of
  Registrable Securities)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

PLEASE FAX THE COMPLETED AND
EXECUTED QUESTIONNAIRE FOR RECEIPT TO:

 

CORPORATE OFFICE PROPERTIES TRUST

6711 Columbia Gateway Drive

Suite 300

Columbia, MD  21046

Attention:  Investor Relations

Facsmile: 
(443) 285-5481

 

 

 

Exhibit C

 

ARTICLES OF MERGER

 

between

 

NOTTINGHAM VILLAGE, INC.

(a Maryland corporation)

 

and

 

W&M BUSINESS TRUST

(a Maryland business trust)

 

NOTTINGHAM
VILLAGE, INC., a corporation duly organized and existing under the laws of
the State of Maryland (“NVI”), and W&M BUSINESS TRUST, a business trust
duly organized and existing under the laws of the State of Maryland (“W&M
Trust”), do hereby certify that:

 

FIRST:   The name and place of incorporation or
organization, as the case may be, of each party to these Articles of Merger are
Nottingham Village, Inc., a Maryland corporation, and W&M Business
Trust, a Maryland business trust. 
W&M Trust shall survive the merger as the successor company and
shall continue under the name “W&M Business Trust” as a business trust of
the State of  Maryland.

 

SECOND:  NVI has its
principal office in the State of Maryland in Baltimore County and does not own
an interest in land in the State of Maryland.

 

THIRD:  W&M Trust has its principal office
in the State of Maryland in Howard County and does not own an interest in land
in the State of Maryland.

 

FOURTH:  A Purchase
Agreement and Agreement and Plan of Merger has been approved and executed by
each of NVI and W&M Trust.

 

FIFTH:  The terms and conditions of the
transaction set forth in these Articles of Merger were advised, authorized, and
approved by NVI in the manner and by the vote required by its charter and the
laws of the state of its incorporation and by W&M Trust in the manner and
by the vote required by its certificate of trust and declaration of trust and
by the laws of the state of its organization. 
The manner of approval was as follows:

 

(a)  The Board of Directors of NVI at a meeting
held on December 14, 2006, adopted resolutions which declared that the
proposed merger was advisable on substantially the terms and conditions set
forth or referred to in the resolutions and directed that the proposed merger
be submitted for consideration at a special meeting of the stockholders of
NVI.  Notice which stated that a purpose
of the special meeting was to act on the proposed merger was given by NVI to
its stockholders as required by law.  The
proposed merger was approved by the stockholders of NVI at a special meeting of
stockholders held on January 3, 2007 by the affirmative vote of the
holders of at least a majority of all shares of NVI common stock that were
outstanding and entitled to vote at the special meeting.

 

(b)  The sole trustee of W&M Trust
adopted resolutions on November 20, 2006 by written consent which declared
that the proposed merger was advisable and approved the merger on substantially
the terms and conditions set forth or referred to in the resolutions.

 

 

SIXTH:  No amendment to the declaration of trust
of W&M Trust is to be effected as a part of the merger.

 

SEVENTH:  The total number of shares of capital
stock of all classes which NVI has authority to issue, the number of shares of
each class which NVI has authority to issue, and the par value of the shares of
each class which NVI has authority to issue is as follows:  the total number of shares of stock of all
classes which NVI has authority to issue is 400,600 shares of stock, of which
100,000 shares are classified as Class A Common Stock, par value $10.00
per share, 300,000 shares are classified as Class B Common Stock, par
value $1.00 per share and 600 shares are classified as Class C Common
Stock, par value $1.00 per share.  The
aggregate par value of all the shares of stock of all classes of NVI is
$1,300,600.00.

 

EIGHTH:  The total
number of shares of beneficial interest of all classes which W&M Trust has
authority to issue is 1,000 shares of beneficial interest.  There is only one class of shares of
beneficial interest of W&M Trust.

 

NINTH:  The manner and basis of converting or
exchanging issued stock of NVI, the merging corporation, into a combination of
cash, common stock and preferred stock of Corporate Office Properties Trust, a
Maryland real estate investment trust (“COPT”), which is the sole owner of all
of the shares of beneficial interest of W&M Trust, are as follows:

 

(a)  the shares of NVI common stock (the
“Shares”) issued and outstanding immediately prior to the effective time of the
merger shall be converted into, and become exchangeable for a combination of
cash, common stock of COPT and preferred stock of COPT (together, the “Merger
Consideration”) as determined in accordance with that certain Purchase
Agreement and Agreement and Plan of Merger dated as of December 21, 2006
among NVI, COPT, Corporate Office Properties, L.P. and W&M Trust.  At the effective time of the merger, all of
the Shares shall cease to be outstanding, shall be cancelled and shall cease to
exist, and each certificate formerly representing any of such Shares shall
thereafter represent only the right to the Merger Consideration.  The amount of Merger Consideration received
by each stockholder of NVI shall equal the aggregate Merger Consideration
divided by the number of outstanding shares of common stock of NVI multiplied
by the number of shares of NVI common stock then held by such stockholder; and

 

(b)  The shares of beneficial interest in
W&M Trust issued and outstanding immediately prior to the effective time of
the merger shall remain unchanged and shall remain as the issued and
outstanding shares of beneficial interest of the surviving entity.

 

TENTH:  The merger shall become effective upon
the acceptance of these Articles by the State Department of Assessments and
Taxation of the State of Maryland.

 

ELEVENTH:    
The executed Purchase Agreement and Agreement and Plan of Merger is on
file at the principal place of business of W&M Trust which is 6711 Columbia
Gateway Drive, Suite 300, Columbia, Maryland 21046.

 

 

TWELFTH:  A copy of
the Purchase Agreement and Agreement and Plan of Merger will be furnished by
W&M Trust, on request and without cost, to any stockholder of NVI.

 

 

IN
WITNESS WHEREOF, NOTTINGHAM VILLAGE, INC. and W&M BUSINESS TRUST have
caused these presents to be signed in their respective names and on their
respective behalves by their respective president or executive vice president
and witnessed by their respective secretaries on January 9, 2006.

 

 

	
  WITNESS:

  	
   

  	
  NOTTINGHAM
  VILLAGE, INC.

  
	
   

  	
   

  	
  (a Maryland corporation)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Secretary

  	
   

  	
   

  	
  J.
  Joseph Credit, President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  W&M
  BUSINESS TRUST

  
	
   

  	
   

  	
  (a Maryland business trust)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Secretary

  	
   

  	
   

  	
  Roger
  A. Waesche, Jr., Chief Operating Officer and Executive Vice President

  

 

 

THE
UNDERSIGNED, President of NOTTINGHAM VILLAGE, INC., who executed on behalf
of NVI the foregoing Articles of Merger of which this certificate is made a
part, hereby acknowledges in the name and on behalf of NVI the foregoing
Articles of Merger to be the corporate act of NVI and hereby certifies that to
the best of his knowledge, information and belief the matters and facts set
forth therein with respect to the authorization and approval thereof are true
in all material respects under the penalties of perjury.

 

 

	
   

  	
   

  
	
   

  	
  J.
  Joseph Credit, President

  

 

 

THE
UNDERSIGNED, Chief Operating Officer and Executive Vice President of W&M
BUSINESS TRUST, who executed on behalf of W&M Trust the foregoing Articles
of Merger of which this certificate is made a part, hereby acknowledges in the
name and on behalf of W&M Trust the foregoing Articles of Merger to be the
corporate act of W&M Trust and hereby certifies that to the best of his
knowledge, information and belief the matters and facts set forth therein with
respect to the authorization and approval thereof are true in all material
respects under the penalties of perjury.

 

 

	
   

  	
   

  
	
   

  	
  Roger
  A. Waesche, Jr., Chief Operating Officer and Executive Vice President

  

 

 

EXHIBIT D

PAYMENT RELEASE

 

This
Payment Release (this “Release”) is entered into this 9th day of January, 2007 by Wachovia Capital
Markets, LLC (“Releasor”) for the benefit of Nottingham Village, Inc.
(“NVI”), Corporate Office Properties Trust (“COPT”), Corporate Office
Properties, L.P. (“COPLP”), W&M Business Trust (the “Trust”) and their
respective successors and assigns.

 

RECITALS

 

A.            NVI, COPT, COPLP and the Trust are
parties to a Purchase Agreement and Agreement and Plan of Merger dated December 21,
2006 (the “Merger Agreement”), to which 

 

 

reference
is made for the definitions of capitalized terms appearing herein that are not
otherwise defined herein.

 

B.            The Releasor is entitled to an
advisory fee to be paid by NVI upon the consummation of the Transaction
pursuant to the terms of an Engagement Letter dated June 22, 2006 by and
between NVI and Releasor.

 

C.            This Release is being delivered in
connection with the closing of the transactions contemplated by the Merger
Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the payment by NVI to Releasor of the sum of
$2,889,340, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Releasor hereby agrees as
follows:

 

1.             Release.  Releasor, on Releasor’s behalf and on behalf
of Releasor’s heirs, devisees, legatees, executors, administrators, personal
and legal representatives, assigns and successors in interest (collectively,
the “Derivative Claimants” and each a “Derivative Claimant”), hereby
IRREVOCABLY, UNCONDITIONALLY AND GENERALLY RELEASES, ACQUITS, AND FOREVER
DISCHARGES, to the fullest extent permitted by law, each of NVI, COPT, COPLP
and the Trust and each of their present and future owners, members,
predecessors, successors, assigns, agents, directors, officers, employees,
representatives, attorneys, divisions, subsidiaries and affiliates (and agents,
directors, officers, employees, owners, members, representatives and attorneys
of such owners, members, predecessors, successors, assigns, divisions,
subsidiaries and affiliates), and all persons acting by, through, under or in
concert with any of them (collectively, the “Releasees” and each a “Releasee”),
or any of them, from any and all any liability for any brokerage, finder’s or
other fee or commission due to any of the Derivative Claimants relating to the
Merger; provided, however, this Release shall
not apply to any loan commitment fees due to Releasor under the Short Term Loan
Documents.

 

2.             Enforcement.  Each Releasee shall have the right to enforce
the terms of this Agreement.

 

 

IN
WITNESS WHEREOF, Releasor has executed this Agreement on the date set forth
below.

 

 

	
  WITNESS:

  	
   

  	
  RELEASOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WACHOVIA
  CAPITAL MARKETS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

Exhibit E

LICENSE AGREEMENT

 

THIS
LICENSE AGREEMENT (this “Agreement”) is made as of the 9th day of January, 2007
by and between NVI Liquidating Trust, a Maryland business trust (“Licensor”),
and W&M BUSINESS TRUST, a Maryland business trust (“Licensee”).

 

RECITALS:

 

A.            A Purchase Agreement and Agreement
and Plan of Merger (the “Merger Agreement”) was entered into on December 21,
2006 by and among Nottingham Village, Inc. (“NVI”), an affiliate of
Licensor, and the Licensee Group (as defined below);

 

B.            Licensor is the owner of the trade
names and service marks “Nottingham Ridge,” “Nottingham Centre” and “Nottingham
Center” (collectively, the “Marks”), which Marks are used in connection with
real properties owned by affiliates of Licensee Group (the “Properties”);

 

C.            Licensor obtained the Marks pursuant
to an Assignment dated January 7, 2007 from NVI to Licensor; and

 

D.            Pursuant to the Merger Agreement,
Licensor hereby grants to Licensee Group the right, privilege and license to
use the Marks, subject to the terms and conditions of this Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound hereby, the
parties agree as follows:

 

1.             Grant of License.  Licensor hereby grants to W&M Business
Trust, Corporate Office Properties Trust, Corporate Office Properties, L.P. and
their respective subsidiaries, 

 

 

affiliates,
successors and assigns (the “Licensee Group”) a perpetual, royalty-free,
non-exclusive right and license to use the Marks in connection with business
conducted by Licensee Group, provided that such use may only be in connection
with the Properties, as such Properties may be improved by Licensee Group.

 

2.             Assignment.  Licensee Group may assign, delegate or
otherwise transfer this Agreement, or any rights under this Agreement, in
connection with any transfer of any of the Properties or interests in the
entities owning any of the Properties, provided all transferees shall remain
subject to the terms of this Agreement, including being responsible to Licensor
respecting the quality control set forth herein.

 

3.             Quality Control.  Upon reasonable request by Licensor, Licensee
shall provide Licensor reasonable amounts of samples of advertising and promotional
materials using the Marks and shall allow Licensor to enter Licensee’s premises
during normal business hours to view the services being offered.  Licensor may review the quality and usage of
such services, and suggest that Licensee make such changes as Licensor deems
appropriate, in Licensor’s reasonable discretion.  If disapproval or comment is not received by
Licensee within thirty days after Licensor’s receipt of the materials or
inspection, as appropriate, such materials and services shall be considered
approved.

 

4              Miscellaneous.

 

(a)           Governing Law.  This Agreement shall be governed by and
construed under, and the rights of the parties determined in accordance with,
the laws of the State of Maryland (without reference to the choice of law
provisions of the State of Maryland).

 

(b)           Status of Relationship of the
Parties.  It is understood and agreed
by the parties that this Agreement does not create a fiduciary relationship
between them.  The parties agree that
Licensee is an independent contractor and nothing in this Agreement is intended
to constitute either party an agent, legal representative, subsidiary, joint
venturer, partner, employee, or servant of the other for any purpose
whatsoever.  The relationship of the
parties is that of licensor and licensee only, and is contractual in
nature.  Nothing in this Agreement
authorizes either party to make any contract, agreement, warranty or
representation on the other party’s behalf, or to incur any debt or other obligation
in the other party’s name; and neither party shall in any event assume
liability for, or be deemed liable as a result of, any such action by the other
party; nor shall either party be liable by reason of any act or omission of the
other party in its conduct of its business or for any claim or judgment arising
therefrom against the other party.

 

(c)           Severability.  If any provision of this Agreement, or the
application thereof, is held illegal, unenforceable, or otherwise invalid by
government promulgation or court decree, such holding shall not affect the
other provisions or applications of this Agreement that can be given effect
without the invalid provision.

 

(d)           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the
day and year first written above.

 

	
  WITNESS:

  	
   

  	
  NVI
  LIQUIDATING TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Joseph Credit

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  W&M
  BUSINESS TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
   

  	
   

  	
  Chief
  Operating Officer and Executive Vice President

  

 

 

Exhibit F

 

January 8,
2007

 

To:          «TENANT»

 

c/o
«ADDRESS»

 

Re:                             «PROPERTY» (the
“Property”)

 

Dear
tenant:

 

Please
be advised that the ownership interests in the owner of the Property have been
transferred to Corporate Office Properties, L.P. or an affiliate thereof
(“Transferee”), which has the address of 6711 Columbia Gateway Drive, Suite 300,
Columbia, Maryland  21046.

 

In
connection with such transfer, any security deposit and other deposits held
under the lease (the “Lease”) for the Property between the landlord as named in
the Lease and you, as tenant, have been transferred to Transferee.

 

All
future payments of rent and all other sums due and payable to the landlord
under the Lease should be made to the order of Transferee as follows:

 

 

(1)           to the lockbox address which is noted
below (not to Transferee’s address above):

 

M&T
Lockbox # 64521

Nottingham
Village, Inc.

P.O. Box
64521

Baltimore,
Maryland  21264-4521

 

 

Overnight
address:

 

M&T Bank

Attn:  Lock
Box 64521

1800
Washington Boulevard

Baltimore,
Maryland  21230; or

 

(2)           by wire or ACH per the below
instructions:

 

Deposit
Account # 9843684326

 

	
  ABA
  No.:

  	
  Wire:

  	
  022
  000 046

  
	
   

  	
  ACH:

  	
  052
  000 013

  

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Michael
  C. Bolesta, Esq.

  
	
   

  	
  Gordon,
  Feinblatt, Rothman, Hoffberger & Hollander, LLC, authorized agent
  and attorney for landlord

  

 

 

Exhibit G

CERTIFICATE REGARDING FOREIGN
INVESTMENT

IN REAL PROPERTY TAX ACT

 

Section 1445
of the Internal Revenue Code provides that a transferee (purchaser) of a U.S.
real property interest must withhold tax if the transferor (seller) is a
foreign person.  To inform the transferee
(purchaser) that withholding of tax is not required upon the disposition of a
U.S. real property interest by Nottingham Village, Inc. (“Transferor”)
Transferor hereby certifies:

 

1.        Transferor is not a foreign corporation,
foreign partnership, foreign trust, or foreign estate (as those terms are
defined in the Internal Revenue Code and Income Tax Regulations).

 

2.        Transferor’s Federal Employer
Identification Number is 52-0793645.

 

3.        Transferor’s office address is: 100 West
Pennsylvania Avenue, Towson, Maryland 21204.

 

4.        The address or description of the
property which is the subject matter of the disposition set forth in the
Purchase Agreement and Agreement and Plan of Merger dated December 21,
2006.

 

Transferor
understands that this certification may be disclosed to the Internal Revenue
Service by transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.

 

 

Transferor
declares that it has examined this certification and to the best of its
knowledge and belief, it is true, correct and complete, and further declares
that the individual executing this certification on behalf of Transferor has
full authority to do so.

 

	
   

  	
  NOTTINGHAM
  VILLAGE, INC.,

  
	
   

  	
  a
  Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  J.
  Joseph Credit

  
	
   

  	
  President
  and Chief Executive Officer

  

 

 

	
   

  	
  EXHIBIT H-1

  to

  Merger Agreement

  

 

OPINION OF GORDON, FEINBLATT, ROTHMAN, HOFFBERGER & HOLLANDER,
LLC COUNSEL TO TARGET

 

                    
    , 2007

 

Corporate
Office Properties Trust

Corporate
Office Properties, L.P.

W&M
Business Trust

6711
Columbia Gateway Drive, Suite 300

Columbia,
Maryland 21046

 

Purchase
Agreement and Agreement and Plan of Merger dated as of December 20, 2006

 

Ladies
and Gentlemen:

 

We
are counsel Nottingham Village, Inc., a Maryland corporation (the “Target”).  Target has entered into that certain Purchase
Agreement and Agreement and Plan of Merger dated as of December 20, 2006
(the “Merger Agreement”), by and among Target, Corporate Office
Properties Trust, a Maryland real estate investment trust, Corporate Office
Properties, L.P., a Delaware limited partnership, and W&M Business Trust, a
Maryland business trust (the “Merger Subsidiary”).  We have been requested to deliver this
opinion in connection with the execution and delivery of the Merger
Agreement.  This opinion is furnished to
you pursuant to Section 9.04(g) of the Merger Agreement.  Unless otherwise defined herein, terms used
herein have the meanings assigned to such terms in the Merger Agreement.

 

In
connection with this opinion, we have examined originals, or copies certified
or otherwise identified to our satisfaction, of each of the following
documents:

 

 

(a)           the Merger Agreement;

 

(b)           the Articles of Merger between Target and Merger
Subsidiary in the form to be filed with the SDAT (the “Articles of Merger”)
which, together with the Merger Agreement, are referred to as the “Agreements”;

 

(c)           the Articles of Incorporation of Target, as certified by
the State Department of Assessments and Taxation of Maryland (the “SDAT”);

 

(d)           the bylaws of
Target, as certified by an officer of Target;

 

(e)           certified
resolutions of the Board of Directors of Target relating to the Agreements and
the transactions contemplated thereby;

 

(f)            a good standing
certificate for Target, dated as of a recent date, issued by the SDAT;

 

(g)           an officer’s
certificate of Target, dated the date hereof, as to certain factual matters
(the “Officer’s Certificate”); and

 

(h)           such other documents
as we have considered necessary to the rendering of the opinion expressed below

 

In
our examination of the aforesaid documents, we have assumed, without independent
investigation, the genuineness of all signatures, the legal capacity of all
individuals who have executed any of the aforesaid documents, the authenticity
of all documents submitted to us as originals, the conformity with originals of
all documents submitted to us as copies (and the authenticity of the originals
of such copies), and that all public records from which public information has
been received are accurate and complete. 
In making our examination of documents executed by parties other than
Target, we have assumed that such parties had the power, corporate or other, to
enter into and perform all obligations thereunder, and we have also assumed the
due authorization by all requisite action, corporate or other, and the valid
execution and delivery by such parties of such documents and the validity,
binding effect and enforceability thereof with respect to such parties.  As to any facts material to this opinion, we
have relied solely upon the Officer’s Certificate and have not independently
verified the matters stated therein.

 

Based
upon the foregoing, we are of the opinion and advise you as follows:

 

1.             Target
is a corporation duly incorporated, validly existing, and in good standing
under the laws of the State of Maryland.

 

2.             Target
(a) has the corporate power and authority to execute, deliver, and perform
the Merger Agreement, (b) has all requisite corporate power and authority
to own or lease and operate its properties and assets and to carry on its
business as now conducted, (c) has taken all corporate action necessary to
authorize the execution, delivery, and performance of the Merger Agreement, and
(d) has duly executed and delivered the Merger Agreement.

 

 

3.             The
execution and delivery by Target of the Merger Agreement do not, and the performance
by Target of its obligations under the Merger Agreement will not,
(a) result in a violation of Target’s articles of incorporation or bylaws,
or (b) result in a violation of any Maryland law, rule, or regulation or,
to the best of our knowledge, any order, writ, judgment, injunction, decree,
determination or award binding on Target.

 

4.             No
authorization, approval or other action by, and no notice to or filing with,
any Maryland governmental authority or regulatory body, or other third party is
required for the due execution, delivery, or performance by Target of the
Merger Agreement.

 

5.             The execution and delivery of the
Merger Agreement and the documents contemplated thereby by Target have been
duly authorized by its Board of Directors and those stockholders holding more
than two-thirds of the issued and outstanding stock.

 

Our
opinions expressed above are subject to the following qualifications and
limitations:

 

(a)           We have not made any investigations
of, and express no opinion concerning, laws, rules and regulations of the
State of Maryland relating to health, safety, the environment, environmental
contamination, land use or construction nor any laws, rules and
regulations promulgated by political subdivisions of the State of Maryland.

 

(b)           We do not express any opinion with
respect to the law of any jurisdiction other than the laws of Maryland, as in
effect on the date hereof, and we do not express any opinion herein concerning
any other law.

 

(c)           The foregoing opinions are rendered
as of the date hereof.  We assume no
obligation to update such opinions to reflect any facts or circumstances which
may hereafter come to our attention or changes in the law which may hereafter
occur.

 

(d)           This opinion is limited to the
matters set forth herein, and no other opinion should be inferred beyond the
matters expressly stated.

 

This
opinion letter is rendered to you in connection with the transactions
contemplated by the Agreements.  This
opinion letter may not be relied upon by you or any other person for any other
purpose.

 

	
   

  	
  Very
  truly yours,

  

 

 

	
   

  	
  Exhibit H-2

  to

  Merger Agreement

  

 

 

OPINION OF GORDON, FEINBLATT, ROTHMAN, HOFFBERGER & HOLLANDER,
LLC COUNSEL TO SELLER

 

                ,
2007

 

Corporate
Office Properties, L.P.

6711
Columbia Gateway Drive, Suite 300

Columbia,
Maryland 21046

 

Purchase
and Sale Agreement of Ownership Interests in NPI Entities dated as of
December 20, 2006

 

Ladies
and Gentlemen:

 

We
are counsel Nottingham Properties, Inc., a Maryland corporation (the “Seller”).  Seller has entered into that certain Purchase
and Sale Agreement of Ownership Interests in NPI Entities dated as of December 20,
2006 (the “PSA”), by and between Seller and Corporate Office Properties,
L.P., a Delaware limited partnership.  We
have been requested to deliver this opinion in connection with the execution
and delivery of the PSA.  Unless
otherwise defined herein, terms used herein have the meanings assigned to such
terms in the PSA.

 

In
connection with this opinion, we have examined originals, or copies certified
or otherwise identified to our satisfaction, of each of the following
documents:

 

(a)           the PSA;

 

(b)           the Articles of Incorporation of Seller, as certified by
the State Department of Assessments and Taxation of Maryland (the “SDAT”);

 

(c)           the bylaws of
Seller, as certified by an officer of Seller;

 

(d)           certified
resolutions of the Board of Directors of Seller relating to the PSA and the
transactions contemplated thereby;

 

(e)           a good standing
certificate for Seller, dated as of a recent date, issued by the SDAT;

 

(f)            an officer’s
certificate of Seller, dated the date hereof, as to certain factual matters
(the “Officer’s Certificate”); and

 

(g)           such other documents
as we have considered necessary to the rendering of the opinion expressed below

 

 

In
our examination of the aforesaid documents, we have assumed, without
independent investigation, the genuineness of all signatures, the legal
capacity of all individuals who have executed any of the aforesaid documents,
the authenticity of all documents submitted to us as originals, the conformity
with originals of all documents submitted to us as copies (and the authenticity
of the originals of such copies), and that all public records from which public
information has been received are accurate and complete.  In making our examination of documents
executed by parties other than Seller, we have assumed that such parties had
the power, corporate or other, to enter into and perform all obligations
thereunder, and we have also assumed the due authorization by all requisite action,
corporate or other, and the valid execution and delivery by such parties of
such documents and the validity, binding effect and enforceability thereof with
respect to such parties.  As to any facts
material to this opinion, we have relied solely upon the Officer’s Certificate
and have not independently verified the matters stated therein.

 

Based
upon the foregoing, we are of the opinion and advise you as follows:

 

1.             Seller
is a corporation duly incorporated, validly existing, and in good standing under
the laws of the State of Maryland.

 

2.             Seller
(a) has the corporate power and authority to execute, deliver, and perform
the PSA, (b) has all requisite corporate power and authority to own or
lease and operate its properties and assets and to carry on its business as now
conducted, (c) has taken all corporate action necessary to authorize the
execution, delivery, and performance of the PSA, and (d) has duly executed
and delivered the PSA.

 

3.             The
execution and delivery by Seller of the PSA do not, and the performance by
Seller of its obligations under the PSA will not, (a) result in a
violation of Seller’s articles of incorporation or bylaws, or (b) result
in a violation of any Maryland law, rule, or regulation or, to the best of our
knowledge, any order, writ, judgment, injunction, decree, determination or
award binding on Seller.

 

4.             No
authorization, approval or other action by, and no notice to or filing with,
any Maryland governmental authority or regulatory body, or other third party is
required for the due execution, delivery, or performance by Seller of the PSA.

 

5.             The execution and delivery of the
PSA and the documents contemplated thereby by Seller have been duly authorized
by its Board of Directors and those stockholders holding more than two-thirds
of the issued and outstanding stock.

 

Our
opinions expressed above are subject to the following qualifications and
limitations:

 

(a)           We have not made any investigations
of, and express no opinion concerning, laws, rules and regulations of the
State of Maryland relating to health, safety, the environment, environmental
contamination, land use or construction nor any laws, rules and
regulations promulgated by political subdivisions of the State of Maryland.

 

 

(b)           We do not express any opinion with
respect to the law of any jurisdiction other than the laws of Maryland, as in
effect on the date hereof, and we do not express any opinion herein concerning
any other law.

 

(c)           The foregoing opinions are rendered
as of the date hereof.  We assume no
obligation to update such opinions to reflect any facts or circumstances which
may hereafter come to our attention or changes in the law which may hereafter
occur.

 

(d)           This opinion is limited to the
matters set forth herein, and no other opinion should be inferred beyond the
matters expressly stated.

 

This
opinion letter is rendered to you in connection with the transactions
contemplated by the PSA.  This opinion
letter may not be relied upon by you or any other person for any other purpose.

 

	
   

  	
  Very
  truly yours,

  

 

 

 

CHICAGO
TITLE INSURANCE COMPANY 

Commercial
Certificate

 

	
  RE:

  	
  67 parcels of land in
  Baltimore and Howard

  	
   

  
	
   

  	
  Counties, Maryland k/a
  W&M Transaction

  	
   

  
	
   

  	
  (hereinafter referred to
  as the “Property”)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  STATE
  OF: Maryland

  	
  {to wit:

  

 

COUNTY/CITY OF:

 

BEFORE ME, the undersigned
authority personally appeared J. Joseph Credit, Trustee, of NVI Liquidating
Trust (NVILT) who disposes and says that:

 

1.  To the best of
my information, knowledge and belief, NVILT’s enjoyment of the Property has
been peaceful and undisturbed and the title to the Property has not been
disputed or questioned, nor do I know of any facts by reason of which title to,
or possession of the Property might be disputed or questioned, or by reason of which
others may claim title to the property or any portion thereof or an easement
over and across same except: all matters and conditions or record. There are no
other tenancies, leases, parties in possession or other occupancies of the
Property and each of the parties/tenants disclosed on the attached list
occupies the Property or has a right to such occupancy either as a tenant from
month to month without lease or pursuant to the terms of an unrecorded lease.

 

2.  No proceedings
in bankruptcy or receivership have been filed by NVILT nor has NVILT ever made
an assignment for the benefit of creditors.

 

3.  I know of no
action or proceeding relating to the Property now pending before any State or
Federal Court nor do I know of any judgments or liens (including state and
federal tax liens) which now constitutes a lien or charge upon the Property.

 

4.  I know of no
unrecorded documents affecting title to the Property.

 

5.  I know of no
unpaid real or personal property taxes and/or special assessments affecting the
Property other than those shown on the Commitment For Title Insurance issued to
buyer/lender.

 

6.  There are no
unpaid real or personal property taxes, water and/or sewer usage charges or
unpaid special assessments for items such as improvements for sidewalks, curbs,
gutters, alleys, etc.

 

7.  There are no
unpaid bills or claims for labor or services performed or materials furnished
for the construction of improvements on the Property.

 

 

This certificate is given to
induce CHICAGO TITLE INSURANCE COMPANY to issue it’s policy(ies) of title
insurance with full knowledge that the Company will rely upon the accuracy of
same; and the entity on behalf of which this affidavit is made hereby agrees to
hold CHICAGO TITLE INSURANCE COMPANY harmless and indemnify it against any
actual out of pocket loss or damage it may sustain directly as a result of any
false statement made herein.

 

	
  WITNESS the hand and seal
  of affiant.

  	
   

  	
  NVI Liquidating Trust, a
  Maryland business trust

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  {SEAL}

  
	
   

  	
   

  	
   

  	
  J. Joseph Credit, Trustee

  

 

 

Sworn
to and subscribed before me this                day
of                              ,
2006.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  My Commission Expires

  	
   

  

 

 

GAP
INDEMNITY AND CERTIFICATE

 

State of Maryland

 

City/County
of

 

WHEREAS, CHICAGO TITLE
INSURANCE COMPANY, (hereinafter referred to as “the Company”) has been
requested to issue its Title Insurance Commitment No. 40110-06 A thru X
(hereinafter referred to as “the Commitment”) in respect to the land therein
described;

 

AND WHEREAS, the Company
intends to raise an exception to title on the Commitment as follows:

 

Defects, liens,
encumbrances, adverse claims or other matters, if any, created, first appearing
in the public records or attaching subsequent to the effective date hereof but
prior to the date that proposed insured acquires for value of record the estate
or interest or mortgage thereon covered by this Commitment.

 

(Hereinafter referred to as
“the Exception”)

 

AND WHEREAS, the Company has
been requested to issue the Commitment without the Exception.

 

NOW THEREFORE, it is agreed
that in consideration of the Company issuing the Commitment without Exception,
and issuing its policy(ies) without exception to such matters as are described
in the Exception, the undersigned hereby agrees to promptly defend, remove,
bond or otherwise dispose of any encumbrance, lien or other act solely of or
caused by the undersigned which may arise or be filed , as the case may be,
against or having an effect upon the subject premises during the period of time
between the most recent effective date of the Commitment and date of recording
and further agrees to indemnify and hold the Company harmless against all loss
or damage, including but not limited to all actual out of pocket expenses,
costs and reasonable attorneys’ fees which may arise directly out of the
failure to so remove, bond or otherwise dispose of any said liens, encumbrances
or acts of the undersigned.

 

NOTWITHSTANDING the
aforementioned, it is agreed that the liability of the undersigned hereunder
shall cease at such time as the Company shall have completed its recordation
within a reasonable period of time after final closing, and provided that it
finds no defects, liens, encumbrances, adverse claims or other matters caused
by or recorded against the undersigned in addition to those appearing in the
Commitment, and

 

 

provided further that the
undersigned is not in default in the performance of any of the terms, covenants
and conditions hereof.

 

Dated
this                     day
of                            ,
2006.

 

	
   

  	
   

  	
  NVI Liquidating Trust, a
  Maryland business trust

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  J. Joseph Credit, Trustee

  

 

Executed,
subscribed before me, the undersigned, a Notary Public in and for the State
aforesaid, on this              day
of       
               ,
2006.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary
  Public

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  My Commission Expires:

  	
   

  

 

 

Corporation/limited
liability company

 

	
  State of Maryland

  	
  )

  	
   

  
	
   

  	
  ) to wit:

  	
   

  
	
  County of

  	
  )

  	
  RE:

  	
  67 parcels in Baltimore
  and Howard

  
	
   

  	
   

  	
   

  	
  Counties, Maryland k/a
  W&M

  
	
   

  	
   

  	
   

  	
  Transaction (“The
  Property”)

  

 

Certificate to Support Issuance of Non-Imputation Endorsement

 

The undersigned being first
duly sworn, on oath, deposes and says the following:

 

1.                                     NVI Liquidating
Trust (NVILT) has succeeded to certain interests of Nottingham Village, Inc.
and Nottingham Properties, Inc. and, in consideration thereof, executes
and delivers this Certificate with regard to the above-referenced properties.

 

2.                                     That to the
best of the information, knowledge and belief of the undersigned and subject to
all matters and conditions of record:

 

a.              There are presently no
defect in or liens, encumbrances or other claims against the title to the
property described in the Commitment for Title Insurance No. 40110-06 A
thru X (hereinafter referred to as “the Commitment”) having an Effective Date
of July 1, 2006, issued by Anchor Title Company, LLC as agent for Chicago
Title Insurance Company (hereinafter referred to as “the Company”) other than
as disclosed by the exceptions listed in Schedule B.- Section 2 of said Commitment
and the following: all matters and conditions of record and rights of tenants
under Leases provided the parties to be insured as shown in Schedule A of the
Commitment; and

 

b.              There are presently no
inchoate rights which may ripen into any defect, lien, encumbrance or claim
against the title to said property except as may be created by any instrument
or action required in Schedule B- Section 1 of the Commitment, other than
the following: (If none, state “None”)

 

c.               The undersigned makes these
statements after having questioned all of the other officers, directors, or
members of the corporation/limited liability company who have had any
substantial contact with any transaction or negotiation involving the property
described in the Commitment.

 

d.              The undersigned makes these
statements for the puipose of inducing the Company to issue the non-imputation
endorsement attached hereto as Exhibit A to one or more of the owner’s or
loan policies issued pursuant to the Commitment.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NVI
  Liquidating Trust, a Maryland business trust

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  J. Joseph Credit, Trustee

  	
   

  
				

 

Indemnity To Support Issuance of Non-Imputation Endorsement

 

The following indemnity is
given to the Company as further inducement to it to issue the said endorsement,
as aforesaid.

 

The undersigned entity
hereby indemnifies the Company against any actual out of pocket loss which the
Company may suffer directly by virtue of any valid claim made under the said
non-imputation endorsement based on the existence of any defect in or lien,
encumbrance, right or claim against or with respect to the title to the
aforesaid property which was not disclosed in the above Affidavit but which
should have been so disclosed in order to make all statements in the Affidavit
true and correct. The undersigned entity understands that such losses may
include court costs and reasonable attorney’s fees expended by the Company in
defending the title or interest of the insured against such lien, encumbrance,
right or claim.

 

The undersigned entity
further agrees to pay all court costs and reasonable attorney’s fees which the
Company may expend in enforcing the terms of this Indemnity.

 

	
  NVI
  Liquidating Trust, a Maryland business trust

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
   

  	
   

  
	
   

  	
  J. Joseph Credit, Trustee

  	
   

  

 

 

Sworn
to and subscribed before me this                        day
of                 ,
2006.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary
  Public 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  My Commission expires:

  	
   

  

 

 

SURVEY
CERTIFICATE

 

As an inducement to Chicago
Title Insurance Company to issue its owner’s title insurance policy to
Corporate Office Properties, L.P. or an affiliate thereof with respect to each
improved property identified on Exhibit A attached hereto
(individually, “property” and, collectively, “properties”) with certain survey
coverages, but without the benefit of a new or revised ALTA/ACSM or equivalent
survey of each, and with the understanding that Chicago Title Insurance Company
will act in reliance upon the statements made herein, NVI Liquidating Trust
(“NVILT”) hereby certifies as follows:

 

1.                                      NVILT has
succeeded to certain interests of Nottingham Village, Inc. and Nottingham
Properties, Inc. and, in consideration thereof, executes and delivers this
certificate with regard to the properties listed in Exhibit A.

 

2.                                      To the best
information, knowledge and belief of NVILT, based on an inspection of each
property, no physical changes or alterations to such property and the
improvements located thereon have occurred which would materially and adversely
conflict or differ with such property and the improvements thereon as described
and shown on the existing survey for each such property, each such survey being
identified on Exhibit A and a copy of which has been furnished to Anchor
Title Company, LLC, as agent for Chicago Title Insurance Company in connection
with the issuance of such owner’s title insurance policies, except the
following conditions existing or believed to exist on each property:

 

a.              miscellaneous changes to the
location of curbs and gutters, fences, transformers and trash dumpsters serving
the properties; and

 

b.              a 10,000-12,000 square foot
addition to the existing building on the property known as Tyler Ridge III

 

3.                                      This
Certificate is subject to all matters of record affecting title to each of the
properties and the rights of tenants under Leases provided to insured parties
shown in Schedule A of a Commitment for Title Insurance no. 40110-06 A thru X
issued by Anchor Title Company, LLC as agent for Chicago Title Insurance
Company.

 

 

	
   

  	
   

  	
  NVI Liquidating Trust, a
  Maryland business Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:                                           ,
  2006

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  J. Joseph Credit, Trustee

  

 

 

	
  Property Name

  	
   

  	
  Title Policy

  	
   

  	
  Commitment

  	
   

  	
  Survey

  
	
  Franklin Ridge V

  9900 Franklin Square Drive

  $3,000,000

  	
   

  	
  9/12/05

  	
   

  	
   

  	
   

  	
  10/19/00

  
	
  Franklin Ridge III

  9920 Franklin Square Drive

  $5,000,000

  	
   

  	
  8/10/05

  	
   

  	
   

  	
   

  	
  7/15/05

  
	
  Franklin Ridge I and II
  and

  Nottingham Ridge D

  $10,300,000

  	
   

  	
  1/8/03

  	
   

  	
   

  	
   

  	
  3/25/03 (FR I&II)
 3/28/03 (NRD)

  
	
  White Marsh Hi-Tech

  4969 Mercantile Road

  $5,000,000

  	
   

  	
  8/31/98

  	
   

  	
   

  	
   

  	
  8/18/98

  
	
  Tyler Ridge IIA

  8003 Corporate Drive

  $1,700,000

  	
   

  	
  9/12/00

  	
   

  	
   

  	
   

  	
  10/27/00

  
	
  McLean Ridge I &
  II

  8010 & 8020 Corporate Drive

  $6,000,000

  	
   

  	
  3/30/98

  	
   

  	
   

  	
   

  	
  3/11/98

  
	
  7272 Park Circle

  $6,000,000

  	
   

  	
  pending

  	
   

  	
  5/31/06

  	
   

  	
  4/18/96

  
	
  White Marsh Health Center LP
  

  $3,760,000

  	
   

  	
  12/30/97

  	
   

  	
   

  	
   

  	
  1/21/98

  
	
  White Marsh Business
  Center

  5020, 5022,5024 and 5026

  Campbell Boulevard

  $8,789,076

  	
   

  	
  4/28/00

  	
   

  	
   

  	
   

  	
  4/11/00

  
	
  Corporate Center I

  4940 Campbell Boulevard

  $4,700,000

  	
   

  	
  7/31/03

  	
   

  	
  7/31/03

  	
   

  	
  7/15/03

  
	
  Riverwood Business Center

  $11,600,000

  	
   

  	
   

  	
   

  	
  1/24/02

  	
   

  	
  1/14/03

  
	
  Tyler Ridge I

  8013 – 8023 Corporate Drive

  $6,500,000

  	
   

  	
  2/26/03

  	
   

  	
  11/14/02

  	
   

  	
  6/10/03

  
	
  Nottingham Ridge C

  5355 Nottingham Drive

  $4,200,000

  	
   

  	
  9/2/05

  	
   

  	
   

  	
   

  	
  7/28/05

  
	
  10552 Philadelphia Road

  $5,000,000

  	
   

  	
  10/21/05

  	
   

  	
   

  	
   

  	
  9/21/05

  
	
  216 Schilling Circle

  $2,450,000

  	
   

  	
  8/12/03

  	
   

  	
  8/12/03

  	
   

  	
  7/15/03

  
	
  Ridgley’s Choice

  8601 – 8611 Ridgely’s Choice

  $5,100,000

  	
   

  	
  5/16/05

  	
   

  	
  5/13/05

  	
   

  	
  4/29/05

  

 

 

	
  Property Name

  	
   

  	
  Title Policy

  	
   

  	
  Commitment

  	
   

  	
  Survey

  
	
  Nottingham Center

  502 Washington Avenue

  $6,042,652.41

  	
   

  	
  11/12/04

  	
   

  	
  Not dated

  	
   

  	
  3/1/94

  
	
  Royston Building and APF

  102 W. Pennsylvania Ave and

  111 W. Allegheny

  $4,500,000

  	
   

  	
  Not dated

  	
   

  	
  7/1/97

  	
   

  	
  9/2/97

  
	
  222 - 224 Schilling Circle

  $2,000,000

  	
   

  	
   

  	
   

  	
  4/30/97

  	
   

  	
  4/24/97

  
	
  Franklin Ridge IV

  9910 Franklin Square Drive

  $4,700,000

  	
   

  	
  6/24/05

  	
   

  	
  6/24/05

  	
   

  	
  11/7/05

  
	
  Corporate Place II

  8110 Corporate Drive

  $8,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tyler Ridge II &
  III

  7941 - 7949 & 8007 Corporate

  Drive

  $5,000,000

  	
   

  	
   

  	
   

  	
  7/10/97

  	
   

  	
  6/25/97

  
	
  8029 Corporate Drive

  $6,100,000

  	
   

  	
   

  	
   

  	
  8/31/98

  	
   

  	
  8/28/98

  
	
  White Marsh Commerce
  Center

  $7,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6/14/00

  
	
  McLean Ridge III & IV

  	
   

  	
   

  	
   

  	
  12/31/98

  	
   

  	
  12/14/98

  
	
  Professional Center
  I, II & III

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1/21/98

  
	
  9020 Mendenhall Court

  	
   

  	
  2/17/06

  	
   

  	
  2/15/06

  	
   

  	
  10/11/04

  
	
  Woods at Broken Land and

  Rivers Center III

  	
   

  	
  5/19/05

  	
   

  	
   

  	
   

  	
  5/16/05

  

 

2

 

ESTOPPEL
CERTIFICATE 

 

[insert date]

 

	
  Tenant:

  	
   

  
	
   

  	
   

  
	
   

  	
  Attn:

  
	
   

  	
   

  
	
  To:

  	
  Nottingham
  Village, Inc., their subsidiaries and affiliates, and their successors
  and assigns and lenders

  
	
   

  	
   

  
	
  Re:

  	
  Building:

  
	
   

  	
  Property:

  

 

1.                                                                                         ,
a                           corporation,
is the named Tenant (‘Tenant”), and                         is
the Landlord (“Landlord”) under a Lease dated
              ,
located at the Property (“Property”) identified above. The Lease, together with
the amendments:

 

(collectively, “Lease”)
constitutes the entire agreement between Landlord and Tenant with respect to
the Property and the Premises. A true and correct copy of the Lease is attached
hereto as Exhibit A. There
are no other lease documents, commitments, options or rights with respect to
the Property or the Premises and there are no other representations,
warranties, agreements, concessions, commitments, or other understandings
between the Tenant and the Landlord regarding the Property or the premises
demised other than as set forth in the Lease or this paragraph 1.

 

2.                                     Tenant occupies
Suite          , with a
Rentable Square Footage Area of                rentable
square feet (the “Premises”). Tenant’s Pro Rata Share of the Property
is           % (           ).

 

3.                                     The Term of the
Lease commenced                              and
will expire
                         .
Tenant is the actual occupant in possession of the Premises and has not sublet,
assigned or hypothecated its leasehold interest. All improvements to be
constructed on the Premises by Landlord have been completed and accepted by
Tenant and any tenant construction or improvement allowances have been paid.

 

4.                                   As of this
date, no breach or default exists on the part of Tenant under the Lease, and there
exists no facts that, with the passage of time or the giving of notice, or
both, would constitute a default. To the best knowledge of Tenant, no breach or
default exists on the part of Landlord under the Lease, and there exists no
facts that, with the passage of time or the giving of notice, or both, would
constitute a default. Neither Tenant nor Landlord has commenced any action or
given or received any notice for the purpose of terminating the Lease.

 

 

5.                                      Base Rent is
currently payable in the amount of
$                   per
month (which includes an expense stop equal to the amount of the operating
expenses incurred by Landlord in
the        calendar year and a real
estate expense stop equal to the amount of the real estate taxes incurred by
Landlord in the        calendar year).
The base year amounts for operating expenses are
$                    and
for real estate taxes are
$               (please
specify either dollar amounts or per square foot amounts). Pursuant to the
Lease, Tenant is obligated to pay as additional rent its pro-rata share of
operating expenses and real estate taxes that exceed the operating expense stop
and real estate expense stop set forth in the Lease. The monthly base rent has
been paid through                    and
all additional rent has been paid on a current basis in the manner required
under the Lease.

 

6.                                      Tenant has paid
the first monthly installment of rent in advance, and Tenant has no claim or
defense against Landlord under the Lease and is asserting no offsets or credits
against either the rent or Landlord. Tenant has no claim against Landlord for
any security or other deposits except
$                which
was paid pursuant to the Lease. Tenant has no right to any free rent, rent
abatement, rent credit, or other rent concession, except:

.

 

7.                                      Tenant has no
right to renew or extend the term of the Lease, or to expand the size of the
Premises, except: 

 

 

Tenant has no interest in or
option or preferential right to purchase all or any part of the Premises or the
Property of which it forms a part, other than its right to lease the Premises
as Tenant under the Lease.

 

8.                                      Tenant has no
rights of termination with the terms of the Lease except:

.

 

9.                                   All insurance required
of Tenant by the Lease has been provided by Tenant and all premiums paid.

 

10.                            There has not
been filed by or against Tenant a petition in bankruptcy, voluntary or
otherwise, any assignment for the benefit of creditors, any petition seeking
reorganization or arrangement under the bankruptcy laws of the United States or
any state thereof, or any other action brought under said bankruptcy laws with
respect to Tenant.

 

11.                            Tenant has not
received any notice of Landlord’s prior sale, transfer, or assignment,
hypothecation or pledge of the Lease or any of the rents or other amounts to be
paid by Tenant pursuant thereto.

 

2

 

12.                               Tenant has
received no notice from any governmental authority or other person or party
claiming a violation of, or requiring compliance with, any Federal, State or
local statute, ordinance, rule or regulation or the requirement of law for
environmental contamination at the Premises, to the best knowledge of Tenant,
the Tenant is in compliance with all applicable provisions of the Industry Site
Recovery Act, and no hazardous, toxic, or polluting substances or wastes have
been generated, treated, manufactured, stored, refined, used, handled,
transported, released, spilled, disposed of or deposited by Tenant on, in or
under the Premises.

 

This Tenant Estoppel
Certificate may be relied upon by the Landlord, COPT Acquisitions, Inc.
and Corporate Office Properties, L.P. and any lender providing financing to
acquire the Property.

 

	
  Effective Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS/ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
                                            ,
  a      

  
	
   

  	
   

  	
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
						

 

3

 

 

EXHIBIT K

MUTUAL RELEASE AND
INDEMNIFICATION AGREEMENT

 

This
Mutual Release and Indemnification Agreement (this “Agreement”)
is entered into as of the 9th day of January, 2007 (the “Effective Date”), by and among
Nottingham Properties, Inc., a Maryland corporation (“NPI”),
Nottingham Village, Inc., a Maryland corporation (“NVI”),
Corporate Office Properties Trust, a Maryland real estate investment trust (“COPT”), Corporate Office Properties,
L.P., a Delaware limited partnership (“COPLP”),
and W&M Business Trust, a Maryland business trust and a wholly owned
subsidiary of COPT (“COPT Merger Sub”).  NVI, COPT, COPLP, and COPT Merger Sub shall
sometimes be referred to hereinafter as the “COPT
Group.”

 

RECITALS

 

A.            NPI and COPT Merger Sub shall be
parties to that certain Like-Kind Exchange Agreement dated as of January 10,
2007 (the “Exchange Agreement”),
pursuant to which (i) COPT Merger Sub will convey to NPI all of its
interests in certain entities that are disregarded for federal income tax
purposes and that are listed on Schedule 1 attached hereto (the “Exchanged Retail Interests”) and
that own certain properties and listed on Schedule 2 attached hereto
(the “Exchanged Retail Properties”)
and (ii) NPI will convey to COPT Merger Sub all of its interests in certain
entities that are disregarded for federal income tax purposes and that are
listed on Schedule 3 attached hereto (the “Exchanged
Office Interests”) and that own certain other properties
identified therein and listed on Schedule 4 attached hereto (the “Exchanged Office Properties”), in an
exchange (the “Exchange”) intended to
qualify as a like-kind exchange under Section 1031 of the Internal Revenue
Code of 1986, as amended.

 

B.            NPI and COPLP are parties to that
certain Purchase and Sale Agreement dated as of December 21, 2006 (the “NPI Purchase Agreement”), pursuant
to which COPLP will 

 

 

purchase
the ownership interests in entities owning the properties set forth on Schedule
5 attached hereto.

 

C.            NVI is also a party to that certain
Purchase Agreement and Agreement and Plan of Merger dated December 21,
2006 (the “NVI Merger Agreement”), among
NVI, COPT, COPLP and COPT Merger Sub, pursuant to which NVI will merge with and
into COPT Merger Sub (the “NVI Merger”)
the day prior to the Exchange.

 

D.            The ultimate goal of the NPI
Purchase Agreement, the Exchange and the NVI Merger (collectively, the “Nottingham Transactions”) is for
COPT Merger Sub and COPLP to receive all interests in all of the office
properties owned, directly or indirectly, by NPI and NVI as set forth on Schedule
6 attached hereto (the “Office Properties”).

 

E.            For purposes of this Agreement,
“Affiliates” shall mean, with respect to any Person, any other Person which
directly or indirectly controls, is controlled by or is under common control
with such Person, and “Subsidiaries” shall mean any entity wholly owned, either
directly or indirectly, by another entity. 
For purposes of the immediately preceding sentence, the term “control”
(including, with correlative meanings, the terms “controlling,” “controlled by”
and “under common control with”), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through
ownership of voting securities, by contract, or otherwise.  “Person” means any individual, bank,
corporation, partnership, association, joint-stock company, business trust,
limited liability company or unincorporated organization.  For purposes of this Agreement, the NPI
Liquidating Trust, a Maryland business trust (“Liquidating
Trust”), shall not be considered an Affiliate of NVI.

 

F.             This Agreement is being delivered
in connection with and as a condition precedent to closing under the Exchange
Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements made herein,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, NPI, NVI, COPT, COPLP and COPT Merger Sub hereby agree
as follows:

 

3.             COPT Group Releases.

 

(a)           Release of NVI and NVI Derivative
Claimant Claims.  NVI, on its own
behalf and on behalf of its heirs, devisees, legatees, executors,
administrators, personal and legal representatives, assigns and successors in
interest, and its past, present and future Subsidiaries (collectively, the “NVI Derivative Claimants” and each
an “NVI Derivative Claimant”), hereby
IRREVOCABLY, UNCONDITIONALLY AND GENERALLY RELEASES, ACQUITS, AND FOREVER
DISCHARGES, to the fullest extent permitted by law, NPI and its past, present
and future owners, members, predecessors (including, without limitation,
Nottingham Investment Company), successors, assigns, agents, directors,
officers, employees, representatives, attorneys, divisions, Subsidiaries and
Affiliates (and agents, directors, officers, employees, owners, 

 

 

members,
representatives and attorneys of such owners, members, predecessors,
successors, assigns, divisions, Subsidiaries and Affiliates), and all persons
acting by, through, under or in concert with any of them (collectively, the “NPI Releasees” and each a “NPI Releasee”), or any of them, from
any and all charges, complaints, claims, damages, actions, causes of action,
suits, rights, demands, grievances, costs, losses, debts, and expenses
(including attorneys’ fees and costs incurred), of any nature whatsoever, known
or unknown, absolute or contingent, arising out of or relating to activities of
NVI, NPI or any of their respective Subsidiaries or Affiliates, or the Office
Properties or the Office Interests, or the Nottingham Transactions (including,
without limitation, any claims or other liabilities under the Purchase
Agreement or the Exchange Agreement), or any transactions preceding the
Nottingham Transactions to which NVI, NPI or any of their respective
Subsidiaries or Affiliates was a party, that NVI or any of the NVI Derivative
Claimants now has, owns, or holds, or claims to have, own, or hold, or which
NVI or any of the NVI Derivative Claimants at any time heretofore had, owned, or
held, or claimed to have, own, or hold from the beginning of time to the
Effective Date (each of which is referred to herein as an “NVI
Claim”).  Notwithstanding
the foregoing, NVI, on its own behalf and on behalf of all NVI Derivative
Claimants, expressly reserves any known or unknown claims any of them might now
or hereafter have against Nottingham Management Company, a Maryland corporation
and a former Subsidiary of NPI (“NMC”),
Nottingham Construction Company, a Maryland corporation and a former Subsidiary
of NPI (“NCC”), and Nottingham Utility
Company, LLC, a Maryland limited liability company and a former Subsidiary of
NPI (“NUC”), all of which shall be
wholly owned by the Liquidating Trust, and against the Liquidating Trust; provided, however, that no such claim shall name NPI or any
other NPI Releasee as a defendant nor shall any such claimant hold or attempt
to hold NPI or any other NPI Releasee liable (including by means of any attempt
to pierce the corporate veil) for any acts or omissions of NMC, NCC, NUC or the
Liquidating Trust.  If the Retail
Transaction (defined below) closes with Federal Realty Investment Trust and/or
any of its Affiliates or Subsidiaries (collectively, “FRIT”)
as the acquiring party, then the term “NPI Releasee” or “NPI Releasees” as used
in this Agreement shall include, for all purposes, FRIT, its Affiliates and
Subsidiaries, and their respective successors, assigns, agents, directors,
trustees, officers, employees, representatives, attorneys, divisions,
Subsidiaries and Affiliates (and agents, directors, officers, employees,
owners, members, representatives and attorneys of such successors, assigns,
divisions, Subsidiaries and Affiliates), and all persons acting by, through,
under or in concert with any of them.

 

(b)           Release of NVI and NVI Derivative
Claimant Unknown Claims.  NVI
recognizes that NVI or an NVI Derivative Claimant may have some claim, demand,
or cause of action against the NPI Releasees relating to an NVI Claim of which
NVI and/or any NVI Derivative Claimant is totally unaware and unsuspecting and
which is given up by the execution of this Agreement.  It is NVI’s intention in executing this
Agreement with the advice of legal counsel that this Agreement will deprive NVI
and all NVI Derivative Claimants of any such NVI Claim and prevent NVI and all
NVI Derivative Claimants from asserting the same.  The provisions of any local, state, federal,
or foreign law, statute, or judicial decision providing in substance that this
Agreement shall not extend to such unknown or unsuspecting claims, demands, or
damages, are hereby expressly waived.

 

(c)           Release of COPT, COPLP, COPT
Merger Sub and COPT Derivative Claimant Claims.  COPT, COPLP and COPT Merger Sub, on their own
behalf and on behalf of 

 

 

their
respective heirs, devisees, legatees, executors, administrators, personal and
legal representatives, assigns and successors in interest, and their respective
past, present and future Subsidiaries (collectively, the “COPT
Derivative Claimants” and each a “COPT
Derivative Claimant”), hereby IRREVOCABLY, UNCONDITIONALLY AND
GENERALLY RELEASE, ACQUIT, AND FOREVER DISCHARGE, to the fullest extent
permitted by law, NPI and all other NPI Releasees, or any of them, from any and
all charges, complaints, claims, damages, actions, causes of action, suits,
rights, demands, grievances, costs, losses, debts, and expenses (including
attorneys’ fees and costs incurred), of any nature whatsoever, known or
unknown, absolute or contingent, arising out of or relating to activities of
NVI, NPI or any of their respective Subsidiaries or Affiliates, or the Office
Properties or the Office Interests, or the Nottingham Transactions (including,
without limitation, any claims or other liabilities under the Purchase
Agreement or the Exchange Agreement), or any transactions preceding the
Nottingham Transactions to which NVI, NPI or any of their respective
Subsidiaries or Affiliates was a party, that COPT, COPLP, COPT Merger Sub or
any of the COPT Derivative Claimants now has, owns, or holds, or claims to have,
own, or hold, or which COPT, COPLP, COPT Merger Sub or any of the COPT
Derivative Claimants at any time heretofore had, owned, or held, or claimed to
have, own, or hold from the beginning of time to the Effective Date (each of
which is referred to herein as a “COPT Claim”).  Notwithstanding the foregoing, COPT, COPLP
and COPT Merger Sub, on their own behalf and on behalf of all COPT
Derivative Claimants, expressly reserve any known or unknown claims any of them
might now or hereafter have against NMC, NCC, NUC or the Liquidating Trust; provided, however, that no such claim shall name NPI or any
other NPI Releasee as a defendant nor shall any such claimant hold or attempt
to hold NPI or any other NPI Releasee liable (including by means of any attempt
to pierce the corporate veil) for any acts or omissions of NMC, NCC, NUC or the
Liquidating Trust.

 

(d)           Release of COPT, COPLP, COPT
Merger Sub and COPT Derivative Claimant Unknown Claims.  COPT, COPLP and COPT Merger Sub recognize
that COPT, COPLP, COPT Merger Sub or a COPT Derivative Claimant may have some
claim, demand, or cause of action against the NPI Releasees relating to a COPT
Claim of which COPT, COPLP, COPT Merger Sub and/or any COPT Derivative Claimant
is totally unaware and unsuspecting and which is given up by the execution of
this Agreement.  It is COPT’s, COPLP’s
and COPT Merger Sub’s intention in executing this Agreement with the advice of
legal counsel that this Agreement will deprive COPT, COPLP, COPT Merger Sub and
all COPT Derivative Claimants of any such COPT Claim and prevent COPT, COPLP,
COPT Merger Sub and all COPT Derivative Claimants from asserting the same.  The provisions of any local, state, federal,
or foreign law, statute, or judicial decision providing in substance that this
Agreement shall not extend to such unknown or unsuspecting claims, demands, or
damages, are hereby expressly waived.

 

4.             NPI Release.

 

(a)           Release of NPI and NPI Derivative
Claimant Claims.  NPI, on its own
behalf and on behalf of its heirs, devisees, legatees, executors,
administrators, personal and legal representatives, assigns and successors in
interest (including, without limitation, FRIT, if the Retail Transaction closes
and FRIT or one of its Subsidiaries or Affiliates is the acquiring party
thereunder), and its respective past, present and future Subsidiaries
(collectively, the “NPI Derivative Claimants” and
each a “NPI Derivative Claimant”),
hereby IRREVOCABLY, 

 

 

UNCONDITIONALLY
AND GENERALLY RELEASE, ACQUIT, AND FOREVER DISCHARGE, to the fullest extent permitted
by law, NVI, COPT, COPLP and COPT Merger Sub and their respective present and
future owners, members, predecessors, successors, assigns, agents, directors,
officers, employees, representatives, attorneys, divisions, Subsidiaries and
Affiliates (and agents, directors, officers, employees, owners, members,
representatives and attorneys of such owners, members, predecessors,
successors, assigns, divisions, Subsidiaries and Affiliates), and all persons
acting by, through, under or in concert with any of them (collectively, the “NVI/COPT Releasees” and each an “NVI/COPT Releasee”), or any of them,
from any and all charges, complaints, claims, damages, actions, causes of
action, suits, rights, demands, grievances, costs, losses, debts, and expenses
(including attorneys’ fees and costs incurred), of any nature whatsoever, known
or unknown, absolute or contingent, arising out of or relating to activities of
NVI, NPI or any of their respective Subsidiaries or Affiliates, or the Retail
Properties or the Retail Interests, or the Nottingham Transactions, or any
transactions preceding the Nottingham Transactions (including, without
limitation, any claims or liabilities under the Purchase Agreement or the
Exchange Agreement) to which NVI, NPI or any of their respective Subsidiaries
or Affiliates was a party, that NPI or any of the NPI Derivative Claimants now
has, owns, or holds, or claims to have, own, or hold, or which NPI or any of
the NPI Derivative Claimants at any time heretofore had, owned, or held, or claimed
to have, own, or hold from the beginning of time to the Effective Date (each of
which is referred to herein as a “NPI Claim”).  Notwithstanding the foregoing, NPI, on its
own behalf and on behalf of all NPI Derivative Claimants, expressly
reserves any known or unknown claims any of them might now or hereafter have
against NMC, NCC, NUC or the Liquidating Trust; provided, however, that no such claim shall name any member
of the COPT Group or any other COPT Releasee as a defendant nor shall any such
claimant hold or attempt to hold any member of the COPT Group or any other COPT
Releasee liable (including by means of any attempt to pierce the corporate
veil) for any acts or omissions of NMC, NCC, NUC or the Liquidating Trust.

 

(b)           Release of NPI or any of the NPI
Derivative Claimant Unknown Claims. 
NPI recognizes that NPI or an NPI Derivative Claimant may have some
claim, demand, or cause of action against the NVI/COPT Releasees relating to an
NPI Claim of which NPI and/or any NPI Derivative Claimant is totally unaware
and unsuspecting and which is given up by the execution of this Agreement.  It is NPI’s intention in executing this
Agreement with the advice of legal counsel that this Agreement will deprive NPI
and all NPI Derivative Claimants of any such NPI Claim and prevent NPI and all
NPI Derivative Claimants from asserting the same.  The provisions of any local, state, federal,
or foreign law, statute, or judicial decision providing in substance that this
Agreement shall not extend to such unknown or unsuspecting claims, demands, or
damages, are hereby expressly waived.

 

3.             Collected
Rent.  NPI agrees that any
rent collected after the date hereof by NPI attributable to the Office
Properties shall promptly be forwarded to COPLP.  NVI, COPT, COPLP and COPT Merger Sub agree
that any rent collected after the date hereof by NVI, COPT, COPLP and COPT
Merger Sub attributable to the Retail Properties shall promptly be forwarded to
NPI; provided, however, that if the Retail Transaction closes and FRIT or one
of its Subsidiaries or Affiliates is the acquiring party thereunder, then from
and after the closing of such Retail Transaction, such rent shall promptly be
forwarded to FRIT at 1626 East Jefferson Street, Rockville, Maryland  20852.

 

 

4.             COPT
Group Indemnification. 
The COPT Group hereby agrees to indemnify, defend and hold NPI and all
other NPI Releasees harmless from and against any and all charges, complaints,
claims, actions, causes of action, suits, rights, demands, or grievances of any
nature whatsoever, known or unknown, absolute or contingent, of or brought or
asserted by any third party against NPI or any of the NPI Releasees, and all
damages, costs, losses, debts, and expenses (including attorneys’ fees and
costs) incurred by NPI or any other NPI Releasee in connection therewith, that
are now pending or that hereafter arise and that are related to (a) the
Office Properties or the Exchanged Office Interests, including, without
limitation, (i) claims relating to the loans encumbering any such Office
Properties at the time of, or at any time preceding, the Nottingham
Transactions, (ii) claims relating to any transfer or recordation taxes
now or hereafter imposed on or with respect to the conveyance of such Office
Properties or Exchanged Office Interests to NVI, COPT, COPLP, COPT Merger Sub
or its or their Subsidiaries, (iii) claims relating to the environmental
condition of the Office Properties, and (iv) claims relating to or
involved in any litigation relating to the Office Properties or the Exchanged
Office Interests pending as of the Effective Date, including, without
limitation, that certain case captioned as Silberhorn, et al. v. Woods
Investors Group, LLC Partnership, et al., Case No.: 13-C-05-063766OT, and that
certain case captioned as Hartford Fire Insurance Company as subrogee of The
Management Alliance, Inc. v. Nottingham Management Company, Case No.:
03-C-06-009327 OC and (b) COPT Group’s failure to provide applicable
notices and continuing health coverage that satisfies COBRA to Ronald Heagy,
Bruce Campbell III, John Auer and Deborah Sellmayer (and members of their
families), to individuals who are within their COBRA election period as of the
Effective Date, and to employees of NPI (and members of their families)
terminated in connection with qualifying events after the Effective Date and
before the closing of NPI’s proposed acquisition by FRIT, or a subsidiary of
FRIT (the “Retail Transaction”), but
only with respect to the NPI Group Health Plan (including dental, vision and
prescription drug coverage) and only if such Retail Transaction is consummated
within sixty (60) days of the Closing hereunder; provided,
that COPT Group’s indemnification obligation does not include the assumption of
any other liability with respect to NPI’s employee benefit plans and does not
extend to any other obligation or liability under COBRA.

 

5.             NPI
Indemnification.  NPI
hereby agrees to indemnify, defend and hold NVI, all other NVI Releasees, COPT,
COPLP, COPT Merger Sub and all other NVI/COPT Releasees harmless from and
against any and all charges, complaints, claims, actions, causes of action,
suits, rights, demands, or grievances of any nature whatsoever, known or
unknown, absolute or contingent, of or brought or asserted by any third party
against NVI, any other NVI Releasee, COPT, COPLP, COPT Merger Sub or any other
NVI/COPT Releasee, and all damages, costs, losses, debts, and expenses
(including attorneys’ fees and costs) incurred by NVI, any other NVI Releasee,
COPT, COPLP, COPT Merger Sub or any other NVI/COPT Releasee in connection
therewith, that are now pending or that hereafter arise and that are related to
(a) the Retail Properties or the Exchanged Retail Interests, including,
without limitation, (i) claims relating to the loans encumbering any such
Retail Properties at the time of, or at any time preceding, the Nottingham
Transactions, (ii) claims relating to any transfer or recordation taxes
now or hereafter imposed on or with respect to the conveyance of such Retail
Properties, and (iii) any claims relating to the environmental condition
of the Retail Properties, and (iv) claims relating to or involved in any
litigation relating to the Retail Properties or Exchanged Retail Interests
pending as of the Effective Date and (b) any liabilities or obligations to
P. Douglas Dollenberg arising out of NPI’s or NVI’s payment obligations under
the Retirement Agreement dated 

 

 

January 1,
2005 by and among NPI, NVI and P. Douglas Dollenberg; provided,
that NPI’s indemnification obligation set forth in this subparagraph (b) shall
terminate upon the closing of the Retail Transaction; and provided
further that if the Retail Transaction closes and FRIT or one of its
Subsidiaries or Affiliates is the acquiring party, then neither NVI, COPT,
COPLP, COPT Merger Sub nor any other NVI/COPT Releasee shall have any right to
claim the benefit of such indemnification under this subparagraph (b) against
FRIT, its successors, assigns, agents, directors, officers, employees,
representatives, attorneys, divisions, Subsidiaries and Affiliates (the “FRIT Persons”), and FRIT  and FR White Marsh, Inc. shall assume
the indemnification obligations under subparagraph (a) above.

 

6.             Loan
Guarantees.  NVI
previously executed Loan Guarantees. 
Upon the consummation of the Retail Transaction, NPI shall use its
commercially reasonable efforts to cause the lenders to release COPT Group (as
successor to NVI) from all obligations under the Loan Guarantees which accrue
subsequent to the date of the closing of the Retail Transaction.  If the Retail Transaction fails to close
within one hundred twenty (120) days from the date hereof, NPI shall use its
commercially reasonable efforts to cause the lenders to release COPT Group (as
successor to NVI) from all obligations under the Loan Guarantees accruing after
the date of the release.  “Loan Guarantees” shall mean all
guarantees and indemnities executed by NVI in connection with the loans secured
by the Exchanged Retail Properties.

 

7.             Insurance
Coverage.  NPI shall cause
COPLP to be named as an additional “loss payee” as its interest may appear
under all insurance policies relating to the Exchanged Retail Properties with
respect to which NVI signed Loan Guarantees. 
NPI shall provide evidence to COPLP by April 1 of each year
regarding the insurance coverage on all of the Exchanged Retail
Properties.  Notwithstanding the
foregoing, NPI’s obligations hereunder shall terminate upon the closing of the
Retail Transaction such that the FRIT Persons shall have no obligations under
this Section 7.

 

8.             Notices.  All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given by
delivery (and shall be deemed to have been duly given upon receipt or refusal
of delivery) either (i) in Person, (ii) by a recognized overnight
courier service, in either case to the respective parties at the following
addresses (or at such other address for a party as shall be specified in a
notice given in accordance with this Section 8), or (iii) by
facsimile transmission (if such transmission is followed by delivery on the
immediately following Business Day via the methods set forth in (i) or
(ii) above):

 

If
to any member of NPI:

 

Nottingham Properties, Inc.

100
West Pennsylvania Avenue

Towson,
Maryland 21204

Fax
No.: 410-321-8018

Attn:
J. Joseph Credit, President and Chief Executive Officer

 

 

With
a copy to:

 

Gordon,
Feinblatt, Rothman, Hoffberger & Hollander, LLC

233
East Redwood Street

Baltimore,
Maryland  21202

Fax
No.: 410-576-4246

Attn:
Abba David Poliakoff, Esq.

 

If
to any member of the COPT Group:

 

Corporate
Office Properties Trust

6711
Columbia Gateway Drive

Suite 300

Columbia,
Maryland  21046

Fax No.: 
443-285-7652

Attention: 
Karen M. Singer, Esq.

 

With
a copy to:

 

DLA Piper US LLP  

6225 Smith Avenue

Baltimore, Maryland 21209-3600

Fax
No.:  410-580-3400

Attention:  Richard
E. Levine, Esq.

 

9.             Successors
and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the parties. 
No party shall have the right to assign its rights or obligations under
this Agreement without the prior written consent of the other parties hereto,
which consent may be granted or withheld in any party’s sole and absolute
discretion.  Notwithstanding the
foregoing, any member of the COPT Group or NPI may assign its rights (but not
its obligations) under this Agreement to future owners of any of the Exchanged
Office Interests and the Exchanged Office Properties and the Exchanged Retail
Interests and the Exchanged Retail Properties, respectively.

 

10.          Governing Law.  This Agreement shall be construed and
enforced in accordance with the laws of the State of Maryland, but without
reference to the conflicts of laws principles of such state.

 

11.          Joint and Several
Liability.  NVI, COPT,
COPLP and COPT Merger Sub shall be jointly and severally liable for the
obligations of each of them hereunder. 
NPI shall be wholly liable for its obligations hereunder.

 

12.          Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one 

 

 

and
the same instrument; provided, however, in no event shall this Agreement be
effective unless and until signed by all parties hereto.

 

13.          Entire Agreement;
Modifications; Waivers. 
This Agreement contains the entire agreement among the parties relating
to the subject matter hereof, and there are no promises, agreements,
conditions, undertakings, warranties or representations, oral or written,
express or implied, between them other than as herein set forth.  No change or modification of this Agreement
shall be valid unless the same is in writing and signed by the parties
hereto.  No waiver of any of the provisions
of this Agreement shall be valid unless in writing and signed by the party against
whom it is sought to be enforced.

 

14.          Partial
Invalidity.  If any term,
covenant or condition of this Agreement is held to be invalid or unenforceable
in any respect, such invalidity or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if such invalid or
unenforceable provision had never been contained herein.

 

15.          Interpretation.  Section headings used herein shall not
be used in construing this Agreement. 
Each party acknowledges that such party and its counsel, after
negotiation and consultation, have reviewed and revised this Agreement.  As such, the terms of this Agreement shall be
fairly construed, and the rule of construction that ambiguities in this
Agreement should be resolved against the drafting party shall not be employed
in the interpretation of this Agreement or any amendments, modifications or
exhibits hereto or thereto. 
Whenever  the words “including,”
“include” or “includes” are used in this Agreement, they shall be interpreted
in a non-exclusive manner (i.e.,
they shall mean “including, without limitation”).

 

16.          Recitals.  Each and all of the recitals set forth above
are hereby incorporated into this Agreement by reference.

 

PLEASE READ THIS AGREEMENT CAREFULLY. 
THIS AGREEMENT INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS.

 

 

IN
WITNESS WHEREOF, NPI, NVI, COPT, COPLP and COPT Merger Sub have executed this
Agreement as of the Effective Date.

 

	
   

  	
  NOTTINGHAM
  PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  J.
  Joseph Credit

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Date:

  	
   

  

 

 

	
   

  	
  NOTTINGHAM
  VILLAGE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  J.
  Joseph Credit

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Date:

  	
   

  

 

[signatures continue on the following page]

 

 

	
   

  	
  CORPORATE
  OFFICE PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Operating Office

  
	
   

  	
  Date:

  	
   

  

 

 

	
   

  	
  CORPORATE
  OFFICE PROPERTIES, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Corporate
  Office Properties Trust,

  
	
   

  	
   

  	
  its
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Operating Office

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 

	
   

  	
  W&M
  BUSINESS TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Roger
  A. Waesche, Jr.

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Operating Office

  
	
   

  	
  Date:

  	
   

  

 

 

SCHEDULE 1

 

Exchanged Retail Interests

 

Retail
Properties Business Trust

Nottingham
Square Business Trust

White
Marsh Plaza Limited Partnership

White
Marsh Plaza Business Trust

White
Marsh Plaza, LLC

The
Avenue at White Marsh Business Trust

Shoppes
at Nottingham Square Business Trust

Campbell-Philadelphia
Business Trust

30%
tenancy in common interest in Retail Funding Affiliates, LLC

 

 

SCHEDULE 2

 

Exchanged Retail Properties

 

	
  Property

  	
   

  	
  Address

  	
   

  	
  Title Holder

  	
   

  	
  Tax No.

  
	
  The Avenue at White Marsh (30% tenancy-in-common
  interest)

  	
   

  	
  8101 Honeygo Boulevard

  	
   

  	
  The Avenue at White Marsh Business Trust

  	
   

  	
  14-2200028701

  
	
  The
  Avenue at White Marsh Parking

  	
   

  	
  8207
  Town Center Drive

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2000011985

  
	
  White
  Marsh Plaza

  	
   

  	
  Perry
  Hall Boulevard

  	
   

  	
  White
  Marsh Plaza Business Trust

  	
   

  	
  14-1900001897

  
	
  Shoppes
  at Nottingham Square

  	
   

  	
  5270
  Campbell Boulevard

  	
   

  	
  Shoppes
  at Nottingham Square Business Trust

  	
   

  	
  14-2300010302

  
	
  Shoppes
  at Nottingham Square 2

  	
   

  	
  5350
  Campbell Boulevard

  	
   

  	
  Campbell-Philadelphia
  Business Trust

  	
   

  	
  14-2300002821

  
	
  Bertucci’s

  	
   

  	
  8019
  Honeygo Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2200017197

  
	
  Red
  Lobster

  	
   

  	
  8132
  Corporate Drive

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2200011638

  
	
  TGI
  Friday’s

  	
   

  	
  4921
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2200018668

  
	
  Johns
  Hopkins Health Systems

  	
   

  	
  4924
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2200005924

  
	
  Johns
  Hopkins Health Systems - Phase 2

  	
   

  	
  4930
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2200005923

  
	
  McDonald’s
  II

  	
   

  	
  5302
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2300007101

  
	
  Hilton
  Garden Inn

  	
   

  	
  4967
  Campbell Boulevard

  4965 Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2200025469

  14-2300001519

  
	
  Panera
  Bread

  	
   

  	
  5110
  Campbell Boulevard

  	
   

  	
  Nottingham
  Square Business Trust

  	
   

  	
  14-2400002795

  
	
  M&T
  Bank

  	
   

  	
  5100
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2300011554

  
	
  Chic-Fil-A

  	
   

  	
  5154
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2400002796

  
	
  Eastern
  Petroleum Corp (BP/Subway)

  	
   

  	
  5250
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2300010300

  
	
  Sun
  Trust Bank (Crestar)

  	
   

  	
  5260
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2300010301

  
	
  Baltimore
  County Savings Bank

  	
   

  	
  5340
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2300007100

  
	
  Lowes
  Home Centers

  	
   

  	
  5300
  Campbell Boulevard

  	
   

  	
  Retail
  Properties Business Trust

  	
   

  	
  14-2300002820

  

 

 

SCHEDULE 3

 

Exchanged Office Interests

 

Allegheny
Parking Business Trust

Campbell
Building Business Trust

Honeygo
Limited Partnership I, LLLP

Honeygo
Limited Partnership II, LLLP

Honeygo
Limited Partnership III, LLLP

Lot
3A Business Trust

Philadelphia
Road Business Trust

Professional
Center I, LLC

White
Marsh Professional Center II, LLC

Professional
Center III, LLC

Ridgely’s
Choice Business Trust

Riverwood
Business Center Equity Affiliates, LLC

Royston
Building Business Trust (sole member of Royston-Allegheny Affiliates, LLC)

Schilling
216 Investors, LLC

Schilling
Center Equities, LLC

Tyler
Ridge Limited Partnership (sole beneficiary of Tyler Ridge I Business Trust)

Tyler
Ridge I, LLC

Tyler
Ridge II Improvements Business Trust

Tyler
Ridge III Improvements Business Trust

Tyler
Ridge Affiliates, LLC

White
Marsh Business Center Limited Partnership

White
Marsh Business Center, LLC

WMBC
13A Investment Company

 

 

SCHEDULE 4

 

Exchanged Office Properties

 

	
  Property

  Class

  	
   

  	
  Property

  	
   

  	
  Address

  	
   

  	
  Ownership
  Immediately

  Prior To Effective Time of

  NVI Merger

  
	
  D.1

  	
   

  	
  Tyler
  Ridge II — Leasehold Interest

  	
   

  	
  8007
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge II Improvements Business Trust

  
	
  D.2

  	
   

  	
  Tyler
  Ridge III — Leasehold Interest

  	
   

  	
  7941
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge III Improvements Business Trust

  
	
  D.3

  	
   

  	
  Allegheny
  Parking Facility and 117 Allegheny Avenue

  (Tax
  Parcel No. 09-0914652094)

  	
   

  	
  111
  West Allegheny Avenue, Baltimore County, MD and

  117
  West Allegheny Avenue, Baltimore County, MD

  	
   

  	
  Allegheny
  Parking Business Trust

  
	
  D.4

  	
   

  	
  Campbell
  Building

  	
   

  	
  100
  West Pennsylvania Avenue, Baltimore County, MD

  	
   

  	
  Campbell
  Building Business Trust

  
	
  D.5

  	
   

  	
  Royston
  Building

  	
   

  	
  102
  West Pennsylvania Avenue, Baltimore County, MD

  	
   

  	
  Royston
  Building Business Trust

  
	
  D.6

  	
   

  	
  Lot
  3A — In front of Residence Inn  (L)

  	
   

  	
  4960
  Mercantile Road, Baltimore County, MD

  	
   

  	
  Lot
  3A Business Trust

  
	
  D.7

  	
   

  	
  Philadelphia
  Rd./Rt. 43 (28.53 acres) (L)

  (Tax
  Parcel No. 11-1114066244)

  	
   

  	
  Philadelphia
  Road, Baltimore County, MD

  	
   

  	
  Philadelphia
  Road Business Trust

  
	
  E.2 

  	
   

  	
  Riverwood
  Business Center

  	
   

  	
  7150
  Riverwood Drive, Howard County, MD

  	
   

  	
  Riverwood
  Business Center Equity Affiliates, LLC

  
	
  E.3

  	
   

  	
  216
  Schilling Center

  	
   

  	
  216
  Schilling Circle, Baltimore County, MD

  	
   

  	
  Schilling
  216 Investors, LLC

  
	
  E.4

  	
   

  	
  Ridgely’s
  Choice

  	
   

  	
  8623
  Ridgely’s Choice Drive, Baltimore County, MD

  	
   

  	
  Ridgely’s
  Choice Business Trust

  
	
  G.4

  	
   

  	
  Schilling
  Center

  	
   

  	
  222
  Schilling Circle (222-224 Schilling Cir.), Baltimore County, MD

  	
   

  	
  Schilling
  Center Equities, LLC

  
	
  G.5

  	
   

  	
  Professional
  Center I

  	
   

  	
  7939
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership I, LLLP

  
	
  G.6

  	
   

  	
  Professional
  Center II

  	
   

  	
  7923
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership II, LLLP

  
	
  G.7

  	
   

  	
  Professional
  Center III

  	
   

  	
  8133
  Perry Hall Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership III, LLLP

  
	
  G.8

  	
   

  	
  White
  Marsh Business Center)

  	
   

  	
  5020
  Campbell Boulevard (WMBC I),

  5022
  Campbell Boulevard (WMBC II),

  5026
  Campbell Boulevard (WMBC III),

  5024
  Campbell Boulevard (WMBC IV),

  Baltimore
  County, MD

  	
   

  	
  White
  Marsh Business Center Limited Partnership

  
	
  G.11

  	
   

  	
  Tyler
  Ridge I

  	
   

  	
  8011
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge I Business Trust

  

 

 

SCHEDULE 5

 

Office Properties to be Purchased

 

	
  Property

  Class

  	
   

  	
  Property

  	
   

  	
  Address

  	
   

  	
  Ownership
  Immediately

  Prior to Effective Time of

  NVI Merger

  
	
  B.1

  	
   

  	
  37 Allegheny Avenue

  	
   

  	
  37 Allegheny Avenue, Baltimore County, MD

  	
   

  	
  37 Allegheny Business Trust

  
	
  B.2

  	
   

  	
  10552 Philadelphia Road

  (Leasehold Interest)

  	
   

  	
  10552 Philadelphia Road, Baltimore County, MD

  	
   

  	
  Philadelphia Road Operating Company, LLC

  
	
  B.3

  	
   

  	
  Intentionally Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  B.4

  	
   

  	
  9020 Mendenhall

  	
   

  	
  9020 Mendenhall Court, Howard County, MD

  	
   

  	
  9020 Mendenhall, LLC

  
	
  B.5

  	
   

  	
  Woods at Broken Land

  	
   

  	
  9700 Patuxent Woods Drive, Howard County, MD

  	
   

  	
  Woods Investors, LLC

  
	
  B.6

  	
   

  	
  Rivers Center III

  	
   

  	
  10270 N. Old Columbia Road, Howard County, MD

  	
   

  	
  Rivers Center III Investors, LLC

  
	
  G.1

  	
   

  	
  Campbell Corporate Center I

  	
   

  	
  4940 Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Corporate Center I Limited Partnership

  
	
  G.9

  	
   

  	
  Nottingham Centre

  	
   

  	
  502 Washington Avenue, Baltimore County, MD

  	
   

  	
  Nottingham Associates Limited Partnership

  
	
  G.10

  	
   

  	
  White Marsh Health Center

  	
   

  	
  8114 Sandpiper Circle, Baltimore County, MD

  	
   

  	
  White Marsh Health Center Limited Partnership, LLLP

  
	
  G.12

  	
   

  	
  White Marsh Hi-Tech I and II

  	
   

  	
  4969 Mercantile Road (Bldg 1)

  4979 Mercantile Road (Bldg 2)

  4981 Mercantile Road (Parking)

  	
   

  	
  White Marsh Hi-Tech 1 Business Trust (49%)

  And

  White Marsh Hi-Tech 2 Business Trust (51%)

  

 

Notes

 

G.1.  COPLP will purchase a 50% limited partnership
interest in Corporate Center I Limited Partnership.

G.9.  COPLP will purchase a 43.7% limited
partnership interest in Nottingham Associates Limited Partnership.

G.10.  COPLP will purchase a 60% limited partnership
interest in Sandpiper Limited Partnership which, in turn, owns a 72.5% general
partnership interest in White Marsh Health Center Limited Partnership, LLLP.

G.12.  COPLP will purchase 100% of beneficial
interests in White Marsh Hi-Tech 2 Business Trust (which shall own a 51%
tenancy-in-common interest in White Marsh Hi-Tech property).

 

 

SCHEDULE 6

 

Office Properties

 

	
  Property

  Class

  	
   

  	
  Property

  	
   

  	
  Address

  	
   

  	
  Ownership
  Immediately

  Prior To Effective Time of NVI Merger

  
	
  B.1

  	
   

  	
  37
  Allegheny Avenue

  	
   

  	
  37
  Allegheny Avenue, Baltimore County, MD

  	
   

  	
  37
  Allegheny Business Trust

  
	
  B.2

  	
   

  	
  10552
  Philadelphia Road — Leasehold Interest

  	
   

  	
  10552
  Philadelphia Road, Baltimore County, MD

  	
   

  	
  Philadelphia
  Road Operating Company, LLC

  
	
  B.3

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  B.4

  	
   

  	
  9020
  Mendenhall

  	
   

  	
  9020
  Mendenhall Court, Howard County, MD

  	
   

  	
  9020
  Mendenhall, LLC

  
	
  B.5

  	
   

  	
  Woods
  at Broken Land

  	
   

  	
  9700
  Patuxent Woods Drive, Howard County, MD

  	
   

  	
  Woods
  Investors, LLC

  
	
  B.6

  	
   

  	
  Rivers
  Center III

  	
   

  	
  10270
  N. Old Columbia Road, Howard County, MD

  	
   

  	
  Rivers
  Center III Investors, LLC

  
	
  A.1

  	
   

  	
  8029
  - 8031 Corporate Drive

  	
   

  	
  8029-8031
  Corporate Drive, Baltimore County, MD

  	
   

  	
  8029
  Corporate Drive Business Trust

  
	
  A.2

  	
   

  	
  Corporate
  Place I

  	
   

  	
  8140
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place I Business Trust

  
	
  A.3

  	
   

  	
  Franklin
  Ridge V

  	
   

  	
  9900
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge V Business Trust

  
	
  A.4

  	
   

  	
  Tyler
  Ridge II — Fee Interest

  	
   

  	
  8007
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge II Business Trust

  
	
  A.5

  	
   

  	
  Tyler
  Ridge IIA

  	
   

  	
  8003
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge IIA Business Trust

  
	
  A.6

  	
   

  	
  Tyler
  Ridge III — Fee Interest

  	
   

  	
  7941
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge III Business Trust

  
	
  A.7

  	
   

  	
  McLean
  Ridge V  (L)

  	
   

  	
  8100
  Sandpiper Circle, Baltimore County, MD

  	
   

  	
  McLean
  Ridge V Business Trust

  
	
  A.8

  	
   

  	
  Corporate
  Place III  (L)

  	
   

  	
  8120
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place III Business Trust

  
	
  A.9

  	
   

  	
  Corporate
  Place IV  (L)

  	
   

  	
  8130
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place IV Business Trust

  
	
  A.10

  	
   

  	
  Lot
  401 — on cul-de-sac  (L)

  (Tax
  Parcel No. 11-2200015748)

  	
   

  	
  4985
  Mercantile Road, Baltimore County, MD

  	
   

  	
  Lot
  401 Business Trust

  
	
  A.11

  	
   

  	
  Nottingham
  Ridge (L) and

  (Tax
  Parcel Nos. 11-2400002078 and 

  11-2300012935)

  	
   

  	
  5300
  Nottingham Drive, Baltimore County, MD

  SWM
  Pond in Nottingham Ridge

  	
   

  	
  Nottingham
  Ridge I Business Trust

  
	
  A.12

  	
   

  	
  Nottingham
  Ridge/Phila. Road (L)

  (Tax
  Parcel No. 11-2400002075)

  	
   

  	
  5357
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge II Business Trust

  
	
  A.13

  	
   

  	
  10521
  Red Run Boulevard (L)

  	
   

  	
  10521
  Red Run Boulevard, Baltimore County, MD

  	
   

  	
  10521
  Red Run Business Trust

  
	
  A.14

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  A.15

  	
   

  	
  Campbell
  Blvd & Franklin Sq. (18.62 acres and 

  	
   

  	
  5251
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Campbell
  Boulevard I Business Trust

  

 

 

	
   

  	
   

  	
  1.0052
  acres SWM) (L)

  (Tax Parcel No. 14-2200020875) and

  (Tax Parcel No. 14-22000020877)

  	
   

  	
   

  	
   

  	
   

  
	
  A.16

  	
   

  	
  Campbell
  Blvd & Franklin Sq. (5.23 acres) (L)

  (Tax
  Parcel No. 14-2200020165)

  	
   

  	
  5201
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Campbell
  Boulevard II Business Trust

  
	
  A.17

  	
   

  	
  Nottingham
  Ridge/Phila. Rd. (9.14 acres) (L)

  (Tax
  Parcel No. 11-2300012656)

  	
   

  	
  5361
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge III Business Trust

  
	
  A.18

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  A.19

  	
   

  	
  Franklin
  Ridge Open Space

  (Tax
  Parcel No. 14-2300006823) and

  (Tax
  Parcel No. 14-2300006822)

  	
   

  	
  .174
  Ac Pvt Op Sp., NSR Franklin Square Drive and

  .539
  Ac Pvt Op Sp., NSR Franklin Square Drive

  	
   

  	
  Franklin
  Ridge Open Space Business Trust

  
	
  A.20

  	
   

  	
  8027
  Corporate Drive

   

  	
   

  	
  8027
  Corporate Drive, Baltimore County, MD

  Lot
  13 — Adjacent to Tyler Ridge I

  	
   

  	
  8027
  Corporate Drive Business Trust

  
	
  A.21

  	
   

  	
  Tyler
  Ridge Water Management

  (Tax
  Parcel No. 14-220001624) and

  (Tax
  Parcel No. 14-220001623)

  	
   

  	
  Flood
  Plain and Storm Water Management Area adjacent to Tyler Ridge.

  	
   

  	
  Tyler
  Ridge Water Management Business Trust

  
	
  C.1

  	
   

  	
  10552
  Philadelphia Road — Fee Interest

  	
   

  	
  10552
  Philadelphia Road, Baltimore County, MD

  	
   

  	
  Honeygo
  Run Holdings, LLC

  
	
  C.2

  	
   

  	
  Corporate
  Place II

  	
   

  	
  8110
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Corporate
  Place B Equity Affiliates, LLC

  
	
  C.3

  	
   

  	
  Franklin
  Ridge I

  	
   

  	
  9940
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 1 Business Trust

  
	
  C.4

  	
   

  	
  Franklin
  Ridge II

  	
   

  	
  9930
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 2 Business Trust

  
	
  C.5

  	
   

  	
  Franklin
  Ridge IV

  	
   

  	
  9910
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 4 Business Trust

  
	
  C.6

  	
   

  	
  Nottingham
  Ridge C

  	
   

  	
  5355
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge No. 20 Business Trust

  
	
  C.7

  	
   

  	
  Nottingham
  Ridge D

  	
   

  	
  5325
  Nottingham Drive, Baltimore County, MD

  	
   

  	
  Nottingham
  Ridge No. 30 Business Trust

  
	
  D.1

  	
   

  	
  Tyler
  Ridge II — Leasehold Interest

  	
   

  	
  8007
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge II Improvements Business Trust

  
	
  D.2

  	
   

  	
  Tyler
  Ridge III — Leasehold Interest

  	
   

  	
  7941
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge III Improvements Business Trust

  
	
  D.3

  	
   

  	
  Allegheny
  Parking Facility and 117 Allegheny Avenue

  (Tax
  Parcel No. 09-0914652094)

  	
   

  	
  111
  West Allegheny Avenue, Baltimore County, MD and

  117
  West Allegheny Avenue, Baltimore County, MD

  	
   

  	
  Allegheny
  Parking Business Trust

  
	
  D.4

  	
   

  	
  Campbell
  Building

  	
   

  	
  100
  West Pennsylvania Avenue, Baltimore County, MD

  	
   

  	
  Campbell
  Building Business Trust

  

 

 

	
  D.5

  	
   

  	
  Royston
  Building

  	
   

  	
  102
  West Pennsylvania Avenue, Baltimore County, MD

  	
   

  	
  Royston
  Building Business Trust

  
	
  D.6

  	
   

  	
  Lot
  3A — In front of Residence Inn  (L)

  	
   

  	
  4960
  Mercantile Road, Baltimore County, MD

  	
   

  	
  Lot
  3A Business Trust

  
	
  D.7

  	
   

  	
  Philadelphia
  Rd./Rt. 43 (28.53 acres) (L)

  (Tax
  Parcel No. 11-1114066244)

  	
   

  	
  Philadelphia
  Road, Baltimore County, MD

  	
   

  	
  Philadelphia
  Road Business Trust

  
	
  E.1

  	
   

  	
  Intentionally
  Deleted

  	
   

  	
   

  	
   

  	
   

  
	
  E.2
  

  	
   

  	
  Riverwood
  Business Center

  	
   

  	
  7150
  Riverwood Drive, Howard County, MD

  	
   

  	
  Riverwood
  Business Center Equity Affiliates, LLC

  
	
  E.3

  	
   

  	
  216
  Schilling Center

  	
   

  	
  216
  Schilling Circle, Baltimore County, MD

  	
   

  	
  Schilling
  216 Investors, LLC

  
	
  E.4

  	
   

  	
  Ridgely’s
  Choice

  	
   

  	
  8623
  Ridgely’s Choice Drive, Baltimore County, MD

  	
   

  	
  Ridgely’s
  Choice Business Trust

  
	
  F.1

  	
   

  	
  White
  Marsh Commerce Center I

  	
   

  	
  10001
  Franklin Square (10001 — 10049), Baltimore County, MD

  	
   

  	
  White
  Marsh Commerce Center I Business Trust

  
	
  F.2

  	
   

  	
  McLean
  Ridge I

  	
   

  	
  8012
  - 8020 Corporate Drive, Baltimore County, MD

  	
   

  	
  McLean
  Ridge I Business Trust

  
	
  F.3

  	
   

  	
  McLean
  Ridge II

  	
   

  	
  8002
  - 8010 Corporate Drive, Baltimore County, MD

  	
   

  	
  McLean
  Ridge II Business Trust

  
	
  F.4

  	
   

  	
  McLean
  Ridge III

  	
   

  	
  7920
  Corporate Drive, Baltimore County, MD

  	
   

  	
  McLean
  Ridge III Business Trust

  
	
  F.5

  	
   

  	
  McLean
  Ridge IV

  	
   

  	
  8098
  Sandpiper Cir., Baltimore County, MD

  	
   

  	
  McLean
  Ridge IV Business Trust

  
	
  F.6
  

  	
   

  	
  White
  Marsh Commerce Center II (L)

  	
   

  	
  9951
  Franklin Square Drive (9951-9999 Franklin Sq.), Baltimore County, MD

  	
   

  	
  White
  Marsh Commerce Center II Business Trust

  
	
  G.1

  	
   

  	
  Campbell
  Corporate Center I and Parcel A (.630 acres-Tax Parcel No. 14-2200005926)

  	
   

  	
  4940
  Campbell Boulevard, Baltimore County, MD

  	
   

  	
  Corporate
  Center I Limited Partnership

  (Campbell
  Corporate Center I) and

  Campbell
  Corporate Center I-2 Business Trust

  (Tax
  Parcel No. 14-2200005926)

  
	
  G.2

  	
   

  	
  Franklin
  Ridge III

  	
   

  	
  9920
  Franklin Square Drive, Baltimore County, MD

  	
   

  	
  Franklin
  Ridge No. 3 Business Trust

  
	
  G.3

  	
   

  	
  7272
  Park Circle Drive

  	
   

  	
  7272
  Park Circle Drive, Anne Arundel County, MD

  	
   

  	
  Park
  Circle Equities, LLC

  
	
  G.4

  	
   

  	
  Schilling
  Center

  	
   

  	
  222
  Schilling Circle (222-224 Schilling Cir.), Baltimore County, MD

  	
   

  	
  Schilling
  Center Equities, LLC

  
	
  G.5

  	
   

  	
  Professional
  Center I

  	
   

  	
  7939
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership I, LLLP

  
	
  G.6

  	
   

  	
  Professional
  Center II

  	
   

  	
  7923
  Honeygo Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership II, LLLP

  
	
  G.7

  	
   

  	
  Professional
  Center III

  	
   

  	
  8133
  Perry Hall Boulevard, Baltimore County, MD

  	
   

  	
  Honeygo
  Limited Partnership III, LLLP

  

 

 

	
  G.8

  	
   

  	
  White
  Marsh Business Center and 1.14 acres

  (Tax
  Parcel No. 14-2000000284)

  	
   

  	
  5020
  Campbell Boulevard (WMBC I)

  5022
  Campbell Boulevard (WMBC II)

  5026
  Campbell Boulevard (WMBC III)

  5024
  Campbell Boulevard (WMBC IV),

  Baltimore
  County, MD

  	
   

  	
  White
  Marsh Business Center Limited Partnership

  (White
  Marsh Business Center) and

  White
  Marsh Business Center 2 Business Trust

  (Tax
  Parcel No. 14-2000000284) 

  
	
  G.9

  	
   

  	
  Nottingham
  Centre

  	
   

  	
  502
  Washington Avenue, Baltimore County, MD

  	
   

  	
  Nottingham
  Associates Limited Partnership

  
	
  G.10

  	
   

  	
  White
  Marsh Health Center

  	
   

  	
  8114
  Sandpiper Circle, Baltimore County, MD

  	
   

  	
  White
  Marsh Health Center Limited Partnership, LLLP

  
	
  G.11

  	
   

  	
  Tyler
  Ridge I

  	
   

  	
  8011
  Corporate Drive, Baltimore County, MD

  	
   

  	
  Tyler
  Ridge I Business Trust

  
	
  G.12

  	
   

  	
  White
  Marsh Hi-Tech I and II

  	
   

  	
  4969
  Mercantile Road (Bldg 1)

  4979
  Mercantile Road (Bldg 2)

  4981
  Mercantile Road (Parking)

  	
   

  	
  White
  Marsh Hi-Tech 1 Business Trust (49%)

  and

  White
  Marsh Hi-Tech 2 Business Trust (51%)

  

 

Notes

 

G.1.  COPLP will purchase a 50% limited partnership
interest in Corporate Center I Limited Partnership.

G.9.  COPLP will purchase a 43.7% limited
partnership interest in Nottingham Associates Limited Partnership.

G.10.  COPLP will purchase a 60% limited partnership
interest in Sandpiper Limited Partnership which, in turn, owns a 72.5% general
partnership interest in White Marsh Health Center Limited Partnership, LLLP.

G.12.  COPLP will purchase 100% of beneficial
interests in White Marsh Hi-Tech 2 Business Trust (which shall own a 51%
tenancy-in-common interest in White Marsh Hi-Tech property).

 

 

 

Exhibit L

FIRST AMENDMENT TO RETIREMENT AGREEMENT

 

P. DOUGLAS DOLLENBERG

 

THIS
FIRST AMENDMENT (the “First Amendment”) is made as of January       ,
2007, but effective as of January 1, 2005, by and between Nottingham
Properties, Inc., a Maryland corporation (the “Company”), Nottingham
Village, Inc., a Maryland corporation (“Village”) and P. Douglas
Dollenberg (“Executive”).

 

RECITALS

 

WHEREAS,
the Company, Village and Executive entered into a Retirement Agreement dated as
of January 1, 2005 (the “Retirement Agreement”); and

 

 

WHEREAS,
under the Retirement Agreement, the Company will provide to Executive benefits
under the Company’s retiree medical program; and

 

WHEREAS,
the Company has been providing to Executive and Kathleen B. Dollenberg, his
wife, benefits under the Company’s retiree medical program since his retirement
from active employment with the Company; and

 

WHEREAS,
the Company, Village and Executive wish to amend the Retirement Agreement to
comply with Section 409A of the Internal Revenue Code, based on
regulations and guidance issued to date by the Internal Revenue Service
interpreting Code Section 409A; and

 

WHEREAS,
the Company, Village and Executive also wish to amend the Retirement Agreement
to provide that, in lieu of continuing to provide Executive
and Kathleen B. Dollenberg benefits under the Company’s retiree
medical program, Company will pay Executive a lump sum payment in
cash of $491,822 on or about January 3, 2007.

 

NOW,
THEREFORE, it is agreed as follows:

 

1.             Effective January 3, 2007, the
following shall be added at the end of paragraph 3 of the Retirement Agreement:

 

 

“Notwithstanding any other provision of this
Agreement, effective January 3, 2007, the Company shall have
no obligation to provide Executive or Kathleen B. Dollenberg any benefit
under the Company’s retiree medical program, including, but not limited to,
reimbursement of the Medicare Supplement and, in lieu thereof, the Company
shall pay Executive a lump sum payment in cash of $491,822 on or about January 5,
2007.  Executive acknowledges that such
payment constitutes payment in full of all obligations of the Company and
Village to Executive and Kathleen B. Dollenberg with respect to benefits under
the Company’s retiree medical program, including, but not limited to, reimbursement
of the Medicare Supplement, under this Agreement or otherwise.  At the
time of such payment, Executive and Kathleen B. Dollenberg will execute a
receipt acknowledging payment in full of all such obligations of the Company
and Village.”

 

2.             Effective January 1,
2005, the following shall be added at the end of paragraph 1 of the Retirement
Agreement:

 

“Such
retirement and resignation shall constitute a “separation from service” under
Section 409A(a)(2)(A)(i) of the Internal Revenue Code and the Internal
Revenue Service guidance and Treasury Regulations promulgated thereunder.”

 

 

3.             Effective January 1,
2005, paragraph 4(d) of the Retirement Agreement shall be deleted and
replaced with the following:

 

“(d)         Acceleration.  Notwithstanding the payment provisions of
paragraph 4(a), above, the entire remaining balance of the Post-Retirement
Compensation payable to the Executive under paragraph 4(a) shall be paid
in one lump sum payment as soon as administratively practicable after the
earlier of (i) the death of the Executive or (ii) a “Change in
Control” as to the Executive.  For
purposes of this Agreement, a “Change in Control” means a “change in the
ownership of the corporation,” a “change in the 
effective control of the corporation,” or a “change in the ownership of
a substantial portion of the assets of the corporation,” as such terms are
defined under Section 409A(a)(2)(A)(v) of the Internal Revenue Code
and the Internal Revenue Service guidance and Treasury Regulations promulgated
thereunder.  Executive acknowledges that
such payment, in the amount of $2,625,000.00 (if payable before April 1,
2007), constitutes payment in full of all obligations of the Company and
Village to Executive with respect to Post-Retirement Compensation payable
under this Agreement or otherwise.  At the time of such payment, Executive
will execute a receipt acknowledging payment in full of all such obligations of
the Company and Village.”

 

 

4.             Merger.

 

(a)           Village is
anticipating that it will be merging into and with an affiliate of Corporate
Office Properties Trust (“COPT Affiliate”) and has provided a copy of the
Retirement Agreement and this First Amendment, containing the obligations of
Village thereunder, to COPT Affiliate.  Upon
the consummation of such merger, COPT Affiliate shall be bound by the
obligations of Village under the Retirement Agreement, as hereby amended, under
Maryland law as the successor in the merger with Village.

 

(b)           Company is
anticipating that it may be merging with another entity (“Company Successor”).  Company shall provide a copy of the
Retirement Agreement and this First Amendment containing the obligations of
Company thereunder, to the Company Successor. 
Upon the consummation of such merger, Company Successor shall be bound
by the obligations of Company under the Retirement Agreement, as hereby amended
under Maryland law as the successor in the merger with Company.

 

5.             Reaffirmation.  Except as provided herein, the parties hereto
reaffirm all of the terms and provisions of the Retirement Agreement, and all
defined terms not defined herein shall have the meaning ascribed to such
defined terms in the Retirement Agreement.

 

 

IN
WITNESS WHEREOF, the parties have executed this First Amendment as of the day
and year first above written.

 

 

	
  WITNESS:

  	
   

  	
  NOTTINGHAM
  PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Joseph Credit

  
	
   

  	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  NOTTINGHAM
  VILLAGE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Joseph Credit

  
	
   

  	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  P.
  Douglas Dollenberg

  

 

 

Exhibit M

 

January 9, 2007

 

Nottingham
Village, Inc.

100
W. Pennsylvania Avenue

Towson,
Maryland 21204

 

Purchase
Agreement and Agreement and Plan of Merger dated as of December 21, 2006

 

Ladies
and Gentlemen:

 

 

We
are counsel to Corporate Office Properties Trust, a Maryland real estate
investment trust (the “Acquiror”), Corporate Office Properties, L.P., a
Delaware limited partnership (the “Acquiror OP”) and W&M Business
Trust, a Maryland business trust (the “Merger Subsidiary”).  Acquiror has entered into that certain
Purchase Agreement and Agreement and Plan of Merger dated as of December 21,
2006 (the “Merger Agreement”), by and among Acquiror, Acquiror OP,
Merger Subsidiary and Nottingham Village, Inc., a Maryland corporation
(the “Target”).  We have been
requested to deliver this opinion in connection with the execution and delivery
of the Merger Agreement.  This opinion is
furnished to you pursuant to Section 9.05(d) of the Merger
Agreement.  Unless otherwise defined
herein, terms used herein have the meanings assigned to such terms in the
Merger Agreement.

 

In
connection with this opinion, we have examined originals, or copies certified
or otherwise identified to our satisfaction, of each of the following documents:

 

(a)           the Merger Agreement;

 

(b)           the PSA;

 

(c)           the Articles of
Merger between the Target and Merger Subsidiary in the form to be filed with
the SDAT (the “Articles of Merger”) which, together with the Merger
Agreement and the PSA, are referred to as the “Agreements”;

 

(d)           the Certificate of Trust of each of Acquiror and Merger
Subsidiary, as certified by the State Department of Assessments and Taxation of
Maryland (the “SDAT”);

 

(e)           the Certificate of
Limited Partnership of Acquiror OP, as certified by the Secretary of State of
the State of Delaware;

 

(f)            the Declaration of
Trust of each of Acquiror and Merger Subsidiary, as certified by an officer of
Acquiror and Merger Subsidiary;

 

(g)           the Agreement of
Limited Partnership of Acquiror OP, as certified by the general partner of
Acquiror OP;

 

(h)           certified consent of
the Sole Trustee of Merger Subsidiary relating to the organization of Merger
Subsidiary;

 

(i)            certified consent
of the Sole Trustee of Merger Subsidiary relating to the Agreements and the
transactions contemplated thereby;

 

(j)            certified
resolutions of the Board of Directors of the Acquiror relating to the
Agreements and the transactions contemplated thereby;

 

(k)           certified consent of
the general partner of the Acquiror OP relating to the Agreements and the
transactions contemplated thereby;

 

 

(l)            a good standing
certificate for Merger Subsidiary, dated as of a recent date, issued by the
SDAT;

 

(m)          a good standing
certificate for Acquiror, dated as of a recent date, issued by the SDAT;

 

(n)           a good standing
certificate for Acquiror OP, dated as of a recent date, issued by the Secretary
of State of the State of Delaware;

 

(o)           an officer’s
certificate of Acquiror, dated the date hereof, as to certain factual matters
(the “Officer’s Certificate”); and

 

(p)           such other documents
as we have considered necessary to the rendering of the opinion expressed below

 

In
our examination of the aforesaid documents, we have assumed, without
independent investigation, the genuineness of all signatures, the legal
capacity of all individuals who have executed any of the aforesaid documents,
the authenticity of all documents submitted to us as originals, the conformity
with originals of all documents submitted to us as copies (and the authenticity
of the originals of such copies), and that all public records from which public
information has been received are accurate and complete.  In making our examination of documents
executed by parties other than Merger Subsidiary, Acquiror or Acquiror OP, we
have assumed that such parties had the power, corporate or other, to enter into
and perform all obligations thereunder, and we have also assumed the due
authorization by all requisite action, corporate or other, and the valid
execution and delivery by such parties of such documents and the validity,
binding effect and enforceability thereof with respect to such parties.  As to any facts material to this opinion, we
have relied solely upon the Officer’s Certificate and have not independently
verified the matters stated therein. 
Additionally, when used herein, the phrase “to our knowledge” or other
similar phrases mean the actual knowledge of the attorneys in this firm who
have had active involvement in matters relating to the Merger Agreement or who
have prepared or signed this opinion letter

 

Based
upon the foregoing, we are of the opinion and advise you as follows:

 

1.             Acquiror
is a real estate investment trust duly incorporated, validly existing, and in
good standing under the laws of the State of Maryland.

 

2.             Acquiror
OP is a limited partnership duly organized, validly existing, and in good
standing under the laws of the State of Delaware.

 

3.             Merger
Subsidiary is a business trust duly organized, validly existing, and in good
standing under the laws of the State of Maryland.

 

4.             Acquiror
(a) has the corporate power and authority to execute, deliver, and perform
the Merger Agreement, (b) has all requisite corporate power and authority
to own or lease and operate its properties and assets and to carry on its
business as now conducted, (c) has taken all corporate action necessary to
authorize the execution, delivery, and performance of the Merger Agreement, and
(d) has duly executed and delivered the Merger Agreement.

 

 

5.             Acquiror
OP (a) has the corporate power and authority to execute, deliver, and
perform the Agreements, (b) has all requisite corporate power and
authority to own or lease and operate its properties and assets and to carry on
its business as now conducted, (c) has taken all corporate action necessary
to authorize the execution, delivery, and performance of the Agreements, and
(d) has duly executed and delivered the Agreements.

 

6.             Merger Subsidiary (a) has the
corporate power and authority to execute, deliver, and perform the Merger
Agreement, (b) has all requisite corporate power and authority to own or
lease and operate its properties and assets and to carry on its business as now
conducted, (c) has taken all corporate action necessary to authorize the
execution, delivery, and performance of the Merger Agreement, and (d) has
duly executed and delivered the Merger Agreement.

 

7.             The
execution and delivery by Acquiror of the Merger Agreement do not, and the
performance by Acquiror of its obligations under the Merger Agreement will not,
(a) result in a violation of Acquiror’s certificate of trust or
declaration of trust, or (b) result in a violation of any Maryland law,
rule, or regulation or, to the best of our knowledge, any order, writ,
judgment, injunction, decree, determination or award binding on Acquiror.

 

8.             The
execution and delivery by Acquiror OP of the Agreements do not, and the
performance by Acquiror OP of its obligations under the Agreements will not,
(a) result in a violation of Acquiror OP’s certificate of limited
partnership or agreement of limited partnership, or (b) result in a
violation of any Delaware law, rule, or regulation or, to the best of our
knowledge, any order, writ, judgment, injunction, decree, determination or
award binding on Acquiror OP.

 

9.             The execution and delivery by the
Merger Subsidiary of the Merger Agreement do not, and the performance by Merger
Subsidiary of its obligations under the Merger Agreement will not,
(a) result in a violation of Merger Subsidiary’s certificate of trust or
declaration of trust, or (b) result in a violation of any Maryland law,
rule, or regulation or, to the best of our knowledge, any order, writ,
judgment, injunction, decree, determination or award binding on Merger
Subsidiary.

 

10.          No
authorization, approval or other action by, and no notice to or filing with,
any Maryland governmental authority or regulatory body, or other third party is
required for the due execution, delivery, or performance by Acquiror of the
Merger Agreement, except for the filing of the Articles of Merger with, and the
acceptance for record of the Articles of Merger by, the SDAT.

 

11.          No
authorization, approval or other action by, and no notice to or filing with,
any Delaware governmental authority or regulatory body, or other third party is
required for the due execution, delivery, or performance by Acquiror OP of the
Agreements, except for the filing of the Articles of Merger with, and the
acceptance for record of the Articles of Merger by, the SDAT.

 

12.          No
authorization, approval or other action by, and no notice to or filing with,
any Maryland governmental authority or regulatory body, or other third party is
required for the due execution, delivery, or performance by Merger Subsidiary
of the Merger Agreement, except for 

 

 

the
filing of the Articles of Merger with, and the acceptance for record of the
Articles of Merger by, the SDAT.

 

13.          The execution and delivery of the
Merger Agreement and the documents contemplated thereby by Acquiror, Acquiror
OP and Merger Subsidiary have been duly authorized by the requisite partners or
trustees.

 

14.          The execution and delivery of the PSA
and the documents contemplated thereby by Acquiror OP have been duly authorized
by the general partner of Acquiror OP.

 

Our
opinions expressed above are subject to the following qualifications and
limitations:

 

(a)           We have not made any investigations
of, and express no opinion concerning, laws, rules and regulations of the
State of Maryland relating to health, safety, the environment, environmental
contamination, land use or construction nor any laws, rules and
regulations promulgated by political subdivisions of the State of Maryland.

 

(b)           We do not express any opinion with
respect to the law of any jurisdiction other than the laws of Maryland or
Delaware, as in effect on the date hereof, and we do not express any opinion
herein concerning any other law.

 

(c)           The foregoing opinions are rendered
as of the date hereof.  We assume no
obligation to update such opinions to reflect any facts or circumstances which
may hereafter come to our attention or changes in the law which may hereafter
occur.

 

(d)           This opinion is limited to the
matters set forth herein, and no other opinion should be inferred beyond the
matters expressly stated.

 

This
opinion letter is rendered to you in connection with the transactions
contemplated by the Agreements.  This
opinion letter may not be relied upon by you or any other person for any other
purpose, other than State Farm Life Insurance Company in accordance with the
reliance letter delivered to State Farm of even date herewith.

 

	
   

  	
  Very
  truly yours,

  

 

 

 

Exhibit N

ACKNOWLEDGEMENT

 

The
undersigned, P. Douglas Dollenberg (“Dollenberg”), hereby acknowledges the
following:

 

(i.)                                  Dollenberg has received Four
Hundred Ninety-One Thousand Eight Hundred Twenty-Two Dollars ($491,822.00), in
full satisfaction of all obligations of Nottingham Properties, Inc.
(“NPI”) and Nottingham Village, Inc. (“NVI”) to provide benefits to
Dollenberg and Kathleen B. Dollenberg under NPI’s retiree medical program,
including, but not limited to, reimbursement of the Medicare Supplement,
pursuant to Section 3(i) of the Retirement Agreement by and between
Dollenberg, NPI and NVI, dated January 1, 2005, as amended (the
“Retirement Agreement”);

 

 

(ii.)                               Dollenberg has received to
date monthly annuity payments from the trustee of the Nottingham Properties, Inc.
Pension Plan (the “Pension Plan”) in full satisfaction of all obligations of
NPI to provide Pension Plan benefits to him to date, pursuant to Section 3(ii) of
the Retirement Agreement;

 

(iii.)                            All amounts to which
Dollenberg is entitled under the Nottingham Properties, Inc. 401(k) Capital
Accumulation Plan (the “401(k) Plan”) are currently being held on his
behalf under the 401(k) Plan’s trust, pursuant to Section 3(iv) of
the Retirement Agreement;

 

(iv.)                           Dollenberg has received any
performance bonus to which he may have been entitled with respect to any period
ending on or before December 31, 2004, pursuant to Section 3(v) of
the Retirement Agreement; and

 

(v.)                              Title to the NPI automobile
assigned to Dollenberg as of December 31, 2004 has been transferred to
Dollenberg, pursuant to Section 3(vi) of the Retirement Agreement.

 

The
foregoing shall not affect the obligations of NPI pursuant to Section 9(i) of
the Retirement Agreement.

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  P.
  Douglas Dollenberg

  

 

 

 

Exhibit O

ACKNOWLEDGEMENT

 

The
undersigned, P. Douglas Dollenberg (“Dollenberg”), hereby acknowledges the
following:

 

(vi.)                         Dollenberg has
received Ninety-Nine Thousand Nine Hundred Twenty-Seven Dollars ($99,927.00),
which represents payment in full for Dollenberg’s interests in Campbell
Enterprises Limited Partnership (“CELP”) and is in full satisfaction of all
obligations of CELP to Dollenberg;

 

(vii.)                      Dollenberg has
received
                                                                            
($                            ),
which represents payment in full of the Promissory Note from Nottingham
Properties, Inc. dated January 1, 2005 in the amount of Two Million
One Hundred Ninety-Three Thousand Four Hundred Twenty-One Dollars
($2,193,421.00) and such Promissory Note is satisfied, discharged and paid in
full; and

 

(viii.)                   Dollenberg has received
                                                                            
($                            ),
which represents payment in full of the Promissory Note from Nottingham
Village, Inc. dated January 1, 2005 in the amount of Three Million
Six Hundred Forty-Eight Thousand Three Hundred Sixty-Two Dollars
($3,648,362.00) and such Promissory Note is satisfied, discharged and paid in
full.

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  P.
  Douglas Dollenberg

  

 

 

Exhibit P

ACKNOWLEDGEMENT

 

The
undersigned, P. Douglas Dollenberg (“Dollenberg”), hereby acknowledges the
following:

 

(ix.)                        Dollenberg has
received Two Hundred Fifty-Five Thousand Two Hundred Thirty Five Dollars
($255,235.00), in full satisfaction of all obligations of Nottingham
Properties, Inc. (“NPI”) to provide benefits to Dollenberg under the
Nottingham Properties, Inc. Supplemental Executive Retirement Plan,
effective as of April 1, 1996, pursuant to Section 3(iii) of the
Retirement Agreement by and between Dollenberg, NPI and Nottingham Village, Inc.
(“NVI”) dated January 1, 2005, as amended (the “Retirement Agreement”);
and

 

(x.)                           Dollenberg has
received Two Million Six Hundred Twenty-Five Thousand Dollars ($2,625,000.00),
in full satisfaction of all obligations of NPI and NVI to provide
“Post-Retirement Compensation” to Dollenberg, pursuant to Section 4 of the
Retirement Agreement.

 

The
foregoing shall not affect the obligations of NPI pursuant to Section 9(i) of
the Retirement Agreement.

 

 

	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  P.
  Douglas Dollenberg

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