Document:

Exhibit
10.2

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”),
effective as of July 15, 2005, is by and between Real Estate School Online
Inc., a Florida corporation (“RESO”) and Perry Johannesburg, an
individual residing in the State of Florida (“Executive”).

 

WHEREAS, CGI Holding Corporation is a
publicly traded Nevada corporation having its headquarters in the State of
Illinois (“CGI”) and RESO is a wholly-owned subsidiary of CGI; and

 

WHEREAS, RESO desires to employ Executive,
and Executive desires to accept such employment, pursuant to the terms and
conditions set forth below.

 

NOW, THEREFORE, in consideration of the
foregoing premises and the mutual covenants and agreements contained herein, as
well as for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

 

1.                                       Employment.  RESO hereby
employs Executive, and Executive accepts such employment, in accordance with the
terms and conditions hereinafter set forth.

 

2.                                       Duties.  Executive shall be employed as President of RESO,
at its principal offices in Miami, Florida, or at other offices designated by RESO,
subject to such travel as the rendering of services hereunder may require, and Executive
shall perform and discharge well and faithfully the duties which may be
assigned to him from time to time by the Board of Directors of RESO (the “Board”)
in connection with the conduct of RESO’s businesses (the “Business”). Executive
will report directly to the President of CGI and the Chief Operating Officer of
CGI. The duties of Executive shall be those that are customarily performed by a
president of the same or similar title in a company with similar revenues,
together with such duties that may from time to time be requested provided such
additional duties are reasonably related to the scope of employment of Executive.

 

3.                                       Extent of
Services.  Executive shall devote his entire
time and best efforts to the Business and shall not, during the term of this
Agreement, be engaged (whether or not during normal business hours) in any
other business or professional activity; provided, however, that the
provisions of this Section 3 and Section 7 shall not be
construed as preventing Executive from (i) engaging in a reasonable level
of charitable activities nor investing his personal assets in businesses which
do not compete with CGI, RESO or the Business, in such form or manner as will
not require any services on the part of Executive in the operation or the
affairs of the companies in which such investments are made and in which his
participation is solely that of a passive investor, and (ii) teaching real
estate courses and operating a real estate brokerage and maintaining a real
estate broker’s and a travel agent’s license, but only to the extent that
Executive engaged in such activities prior to the date of this Agreement.

 

4.                                       Compensation.  For all services rendered by Executive under
this Agreement, RESO shall pay Executive for the period from and after the date
of this Agreement through the three year anniversary of the date of this
Agreement, an annual base compensation in an amount equal to two hundred fifty thousand
dollars ($250,000). Any raises or bonuses paid to Executive during the term of
his employment shall be solely within the discretion of the Board. Executive shall
be paid in accordance with the customary payroll practices of RESO, subject to
such deductions and withholdings as may be required by law or agreed to by Executive.
During the term of his employment, Executive shall be

 

 

generally entitled to participate
in benefit plans or programs which are generally made available to Vice
Presidents of CGI’s WebSourced, Inc. subsidiary (“WebSourced”), subject to
all of the rules, regulations, terms and conditions applicable thereto.  A general summary of WebSourced’s generally
available Vice President’s benefits as currently in effect is attached hereto
as Attachment A. RESO shall have the right at any time to put into place
arrangements pursuant to which some or all of Executive’s compensation and/or
benefits set forth above shall be provided to Executive by or through CGI or
other companies affiliated with CGI and RESO (rather than directly by RESO),
and Executive shall fully cooperate with such arrangements and shall promptly
sign such documents and take all such other actions as shall be deemed
necessary by the legal counsel for RESO in order to facilitate such
arrangements, provided that such arrangements shall not in any event reduce any
of the compensation, benefits and perks to which Executive is entitled under
this Agreement as of the signing hereof.

 

5.                                       Term.  This Agreement shall commence on the date
first set forth above and shall continue until the three year anniversary of
the date hereof, unless earlier terminated in accordance with Section 6
of this Agreement.

 

6.                                       Termination of
Employment.

 

(a)                                  Death or Disability of Executive. 
The employment of Executive under this Agreement shall terminate upon
his death or, at the option of RESO, if Executive shall be prevented from fully
performing his duties hereunder as a result of his disability or illness for a
continuous period of one hundred eighty (180) days, and Executive shall only be
entitled to be paid vacation pay and base salary earned or accrued through the
date of termination, and no severance payment shall be due or payable to Executive
in such event.

 

(b)                                 By Relocation.  In the event that Executive’s duties require
relocation to another geographic location more than 20 miles from his current
geographic location, and Executive declines to accept such transfer to such
other geographic location and a suitable position cannot be arranged at Executive’s
current location (in Executive’s sole discretion), then Executive’s employment
hereunder shall be deemed terminated without cause effective ninety (90) days
after the notice to Executive of the request for relocation, and Executive shall
be entitled to be paid vacation pay and base salary earned or accrued through
the date of termination, the severance payment provided by Section 6(e) shall
be due and payable to Executive in such event, and this shall not affect Executive’s
right to receive any compensation or consideration under any other agreement
with RESO or CGI.

 

(c)                                  Termination “For Cause”. 
RESO shall have the right to terminate the employment of Executive under
this Agreement “For Cause,” as such term is defined below, at any time
without further liability or obligations to Executive, excepting only that Executive
shall be entitled to be paid vacation pay and base salary earned or accrued
through the date of termination, and no severance payment shall be due or
payable to Executive in such event. For purposes of this Agreement, “For
Cause” shall refer to any of the following events as determined in the
judgment of the Board: (1) Executive’s repeated gross neglect of or
negligence in the performance of his duties; (2) Executive’s failure or
refusal to follow instructions given to him by the Board or the CGI Board; (3) Executive’s
repeated violation of any provision of CGI’s or RESO’s Bylaws or of their other
stated policies, standards, or regulations; (4) Executive being
investigated, indicted, convicted or plea bargaining in regard

 

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to any criminal offense,
other than minor traffic violations, based on Executive’s conduct occurring
during the term of this Agreement; or (5) Executive’s violation or breach
of any material term, covenant or condition contained in this Agreement.

 

(d)                                 Accrued Salary.  In the event that RESO or Executive terminates
this Agreement for any reason whatsoever, Executive shall be paid (less all
applicable deductions) all earned and accrued base compensation due to Executive
for services rendered up to the date of termination.

 

(e)                                  Severance Payment. 
Except in the case of termination pursuant to Section 6(a) (death
or disability of Executive), or Section 6(c) (For Cause), in
the event that RESO terminates this Agreement Executive shall be paid on the
date of termination a severance amount equal to all amounts of his annual base
compensation, less all applicable deductions, that would have become due and
owing to Executive through the three year anniversary of the date of this
Agreement, as if Executive’s employment with RESO had not been terminated prior
thereto.

 

7.                                       Non-Competition
and Non-Solicitation.

 

(a)                                  Executive’s acknowledges that the
services to be performed by him under this Agreement are of a special, unique,
unusual, extraordinary and intellectual character, and the provisions of this Section 7
are reasonable and necessary to protect RESO’s business.

 

(b)                                 In consideration of the foregoing
acknowledgments by Executive, and in consideration of the compensation and
benefits to be paid or provided to Executive by RESO, Executive covenants that
he will not, during the term of this Agreement and for a period of one (1) year
thereafter, directly or indirectly:

 

(1)                                  except in the course of his
employment hereunder, engage or invest in, own, manage, operate, finance,
control, or participate in the ownership, management, operation, financing, or
control of, be employed by, associated with, or in any manner connected with,
any business whose products or services compete in whole or in part with the
products or services of RESO or CGI; provided, however, that Executive may
purchase or otherwise acquire up to (but not more than) one percent (1%) of any
class of securities of any enterprise (but without otherwise participating in
the activities of such enterprise) if such securities are listed on any
national or regional securities exchange or have been registered under Section 12(g) of
the Securities Exchange Act of 1934;

 

(2)                                  whether for Executive’s own account
or for the account of any other person, solicit business of the same or similar
type of business then being carried on by RESO or CGI, from any person or
entity known by Executive to be a customer of RESO or CGI, whether or not Executive
had personal contact with such person or entity during and by reason of Executive’s
employment with RESO;

 

(3)                                  whether for Executive’s own account
or the account of any other person (i) solicit, employ or otherwise engage
as an employee, independent contractor or otherwise, any person who is or was
an employee of RESO or CGI at any time during the term of this Agreement or in
any manner induce or attempt to induce any employee

 

3

 

of RESO or CGI to
terminate his employment with RESO or CGI, or (ii) interfere with RESO’s or
CGI’s relationship with any person or entity, including any person or entity who
at any time during the term of this Agreement was an employee, contractor,
supplier or customer of RESO or CGI; or

 

(4)                                  at any time during or after the
term of this Agreement, disparage RESO, CGI or any subsidiary of CGI, or any of
their respective shareholders, directors, officers, employees or agents.

 

(c)                                  If any covenant of this Section 7
is held to be unreasonable, arbitrary or against public policy, such covenant will
be considered to be divisible with respect to scope, time and geographic area,
and such lesser scope, time or geographic area, or all of them, as a court of
competent jurisdiction may determine to be reasonable, not arbitrary and not
against public policy, will be effective, binding and enforceable against Executive.

 

(d)                                 Executive
acknowledges and agrees that should Executive transfer between or among RESO and
any of its affiliated companies including, without limitation, any parent,
subsidiary or other corporately related entity (a “RESO Affiliate”)
wherever situated, or otherwise become employed by any RESO Affiliate, or
should he be promoted or reassigned to functions other than the duties set
forth in this Agreement, or should Executive’s compensation and benefit package
change (either higher or lower), the terms of this Section 7 shall
continue to apply with full force.

 

(e)                                  In the event Executive’s employment
is terminated by RESO other than pursuant to Section 6(a) or Section 6(c),
Executive may, in his sole discretion, elect to waive any severance payment which
may otherwise be due and owing to Executive pursuant to Section 6(e) above
in exchange for RESO’s agreement that the restrictions of Section 7(b)(1) shall
be deemed null and void and unenforceable against Executive and RESO shall not
attempt to enforce the same.

 

(f)                                    Executive agrees and acknowledges that RESO does
not have an adequate remedy at law for the breach or threatened breach
by Executive of this Section 7 and agrees that RESO may, in
addition to the other remedies which may be available to it under this
Agreement, file suit in equity to enjoin Executive from such breach or
threatened breach.

 

8.                                       Certain Representations.  Executive
acknowledges that as a publicly traded company functioning under the recently
enacted Sarbanes-Oxley Act, CGI and its subsidiaries including RESO are subject
to close scrutiny regarding their activities, internal financial controls, and
public comments and disclosures. To appropriately protect CGI and its subsidiaries
including RESO, Executive expressly acknowledges and agrees as follows:

 

(a)                                  Executive’s
employment by RESO shall be full-time employment. Except as expressly provided
herein, during the period of such employment by RESO, Executive shall not have,
provide or perform any work, advice, assistance, consultation, analysis, input,
participation, or interest whatsoever (including but not limited to any
financial interest, direct or indirect, legal or beneficial) in or for the
benefit of any corporation, partnership, joint venture, limited liability company,
sole proprietorship, or any other entity whatsoever, whether for-profit or
non-profit and regardless of whether or not such entity competes against the
Business, excepting volunteer

 

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activities for local churches or schools and
passive real estate investments or investments in publicly traded stocks
provided that such volunteer activities and investments do not interfere with
the performance of Executive’s work for RESO.

 

(b)                                 During
and following any termination of Executive’s employment by RESO for any reason
and under any circumstances whatsoever:

 

(1)                                  Executive
shall refrain from making any public or private disclosures regarding RESO, CGI,
any subsidiary of CGI or their respective officers, directors, employees or
shareholders, except disclosures of such information as may have been publicly
disclosed by CGI or its subsidiaries including RESO from time to time in press
releases or in filings with the U.S. Securities and Exchange Commission, and
except as may be required by applicable law or court order; and

 

(2)                                  Executive
shall refrain from making public or private disparaging remarks regarding the
Business, RESO, CGI, any subsidiary of CGI or their respective officers, directors,
employees or shareholders, or CGI’s common stock.

 

(c)                                  Executive
further represents, warrants and covenants as follows:

 

(1)                                  that
Executive is not subject to any contract, non-compete agreement, decree or
injunction which prohibits or restricts his performance of the duties set forth
herein with RESO, the continued operation of RESO’s business or the expansion
thereof to other geographical areas, customers and suppliers or lines of
business; and

 

(2)                                  That
no claims or lawsuits are pending at the time of this Agreement against Executive
or any corporation or other entity wherein he was or is an officer or director.

 

(d)                                 If
during the period of his employment by RESO, Executive violates this Section 8
or any of the representations, warranties and covenants made by Executive in
this Section 8 prove to be false, then following discovery of the
violation or falsehood, Executive shall immediately pay and turn over to RESO any
and all software, software programs, other work product, copyrights, domain
names, contract rights, accounts receivable, cash, stock, options, warrants,
membership interests, other interests, salary, bonuses, royalties, commissions,
fees and any and all other assets, consideration and compensation of any nature
whatsoever which has been obtained by Executive or any of his immediate family
members or affiliates (directly or indirectly, legally or beneficially) in
regard to such violation.

 

9.                                       Nondisclosure of Proprietary Information.  Executive shall
not, either during or after his employment with RESO, disclose to anyone
outside RESO or use other than for the purpose of the Business, any Proprietary
Information or any information received in confidence by RESO from any third
party. For purposes of this Agreement, “Proprietary Information” is information
and data, whether in oral, written, graphic, or machine-readable form relating
to RESO’s past, present and future businesses, including, but not limited to,
computer programs, routines, source code, object code, data, information,
documentation, know-how, technology, designs, procedures, formulas,
discoveries, inventions, trade secrets, improvements, concepts, ideas, product
plans, research and development, personnel information, financial information,
customer lists and marketing programs and including, without limitation, all
documents marked as confidential or proprietary and/or containing such

 

5

 

information, which RESO has acquired or developed and which has not been
made publicly available by RESO.

 

10.                                 Return of Documents.  Upon the
termination of Executive’s employment with RESO or upon the earlier request of RESO,
Executive shall return to RESO all materials belonging to RESO, including all
materials containing or relating to any Proprietary Information in any written
or tangible form that Executive may have in his possession or control.

 

11.                                 Ownership of Work Product.  Executive
hereby assigns to RESO his entire right, title and interest in all “Developments”.
 “Developments” means any idea,
invention, design of a useful article (whether the design is ornamental or
otherwise), computer program including source code and object code and related
documentation, and any other work of authorship, or audio/visual work, written,
made or conceived solely or jointly by Executive during Executive’s employment
with RESO, whether or not patentable, subject to copyright or susceptible to
other forms of protection that relate to the actual or anticipated businesses
or research or development of RESO, or are suggested by or result from any task
assigned to Executive or work performed by Executive for or on behalf of RESO. Executive
acknowledges that the copyrights in Developments created by him in the scope of
his employment belong to RESO by operation of the law, or may belong to a
customer of RESO pursuant to a contract between RESO and such customer. In
connection with any of the Developments assigned above, Executive agrees to
promptly disclose them to RESO, and Executive agrees, on the request of RESO,
to promptly execute separate written assignments to RESO and to do all things
reasonably necessary to enable RESO to secure patents, register copyrights or
obtain any other forms of protection for Developments in the United States and
in other countries. In the event RESO is unable, after reasonable effort, to
secure Executive’s signature on any letters patent, copyright or other
analogous protection relating to a Development, whether because of Executive’s
physical or mental incapacity or for any other reason whatsoever, Executive irrevocably
designates and appoints RESO and its duly authorized officers and agents as his
agents and attorneys-in-fact to act for and in his behalf and stead to execute
and file any such application or applications and to do all other lawfully
permitted acts to further the prosecution and issuance of letters patent,
copyright or other analogous protection thereon, with the same legal force and
effect as if executed by Executive. RESO, its subsidiaries, licensees,
successors and assigns (direct or indirect), are not required to designate Executive
as the inventor or author of any Development, when such Development is
distributed publicly or otherwise. Executive waives and releases, to the extent
permitted by law, all of his rights to such designation and any rights
concerning future modifications of such Developments. 

 

12.                                 Possession of Other Materials.  Executive
represents that he will not use in the performance of Executive’s
responsibilities for RESO, any materials or documents of a former employer
which are not generally available to the public or which did not belong to Executive,
unless Executive has obtained written authorization from the former employer or
other owner for their possession and use and provided RESO with a copy thereof.

 

13.                                 Indemnification.  Executive agrees to indemnify, defend and
hold harmless RESO, CGI, and each of their respective officers, directors,
employees and shareholders from and against all liabilities, obligations, losses,
expenses, costs (including attorneys fees), claims, deficiencies and damages
incurred or suffered by RESO, CGI, and each of their respective officers,
directors and shareholders, resulting from: (a) Executive’s breach of the
terms of this Agreement, including but not limited to any breach of Executive’s
representations, warranties and covenants, (b) Executive’s breach of any

 

6

 

agreement with a third party
restricting competition, intellectual property, confidential information or
disclosure, (c) Executive’s grossly negligent acts, or (d) Executive’s
improper willful acts,
without any limitations or qualifications whatsoever, and as an express
inducement to RESO and CGI to enter into this Agreement, Executive waives any
and all arguments, grounds, facts, circumstances, reasons, basis, and defenses
whatsoever, whether based in law or in equity, regarding the full force and
effect and legally binding nature of this Agreement of Executive to indemnify
and hold harmless RESO, CGI, and each of their respective officers, directors,
employees and shareholders, as aforesaid. This indemnification provision shall
survive any termination of Executive’s employment relationship with RESO.

 

14.                                 Assignment.  This Agreement may not be assigned by Executive
under any circumstances. This Agreement may be assigned by RESO, or to any
successor of RESO in connection with a merger, consolidation, or sale of all or
substantially all of the assets of RESO or CGI, so long as such assignee
assumes all of RESO’ obligations hereunder.

 

15.                                 Notices.  Any notice required or permitted to be given
under this Agreement shall be sufficient if in writing and sent by registered
or certified mail, return receipt requested, to the following address:

 

	
  To
  Executive:

  	
  Mr. Perry
  Johannesburg

  
	
   

  	
  P.O. Box
  630504

  
	
   

  	
  Miami,
  Florida 33163

  
	
   

  	
   

  
	
  To
  RESO:

  	
  c/o
  WebSourced, Inc.

  
	
   

  	
  Attention:
  President

  
	
   

  	
  300
  Perimeter Park Drive, Suite D

  
	
   

  	
  Morrisville,
  NC 27560

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  CGI
  Holding Corporation

  
	
   

  	
  Attention:
  Chief Executive Officer

  
	
   

  	
  5
  Revere Drive, Suite 510

  
	
   

  	
  Northbrook,
  IL 60062

  

 

or to such other address as either Executive,
RESO or CGI may give to the other from time to time by written notice in the
manner set forth above.

 

16.                                 Waiver of
Breach.  Any waiver by RESO or Executive of
a breach of any provision of this Agreement by the other party shall not
operate or be construed as a waiver of any subsequent breach by the other
party.

 

17.                                 Choice of Law, Jury
Waiver.  This Agreement shall be deemed to have been made
in the State of Illinois, and shall take effect as an instrument under seal
within Illinois.  The validity,
interpretation and performance of this Agreement, and any and all other matters
relating to Executive’s employment and separation of employment from RESO shall
be governed by, and construed in accordance with the internal law of Illinois,
without giving effect to conflict of law principles. Both parties agree that
any action, demand, claim or counterclaim (jointly “Action”) relating to
(i) Executive’s employment and separation of his employment, and (ii) the
terms and provisions of this Agreement or to its breach, shall be commenced in Illinois
in a court of competent jurisdiction. Both parties further acknowledge that
venue shall exclusively lie in Illinois and that material witnesses and
documents would be located

 

7

 

in Illinois. Both parties further agree that any Action shall be tried
by a Judge alone, and both parties hereby waive and forever renounce the right
to a trial before a civil jury.

 

18.                                 Entire
Agreement.  This Agreement
contains the entire agreement of the parties regarding the subject matter
hereof and
supersedes all prior or contemporary agreements or understandings, whether written
or oral with respect thereto.  This Agreement
may be changed only by an agreement in writing signed by the party against whom
enforcement of any waiver, change, modification, extension or
discharge is sought. Failure to insist upon strict compliance with any provision of this
Agreement shall not be deemed a waiver of such provision or of any other
provision in the Agreement.

 

19.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which, when
taken together, shall constitute one and the same instrument.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

8

 

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

 

 

	
  EXECUTIVE:

  	
  REAL ESTATE SCHOOL ONLINE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott P. Mitchell 

  	
   

  
	
  /s/ Perry Johannesburg 

  	
   

  	
   

  	
  Scott P. Mitchell 

  
	
  Perry Johannesburg

  	
  Title:

  	
  Secretary

  
					

 

9

 

Attachment “A”

 

Summary of WebSourced’s
Vice Presidents’ Benefits as of June, 2005

 

1.                                       Medical
insurance where a PPO or HMO plan is offered

2.                                       Dental
and vision insurance

3.                                       Fifteen
(15) vacation days per year

4.                                       Ten
(10) paid holidays per year

5.                                       Company
paid supplemental policies including Accident, Personal Recovery, Disability
and Cancer insurance

6.                                       Short
Term Disability coverage

7.                                       Company
paid Long Term Disability

8.                                       Company
paid executive life insurance plan with a death benefit of five times their
annual salary up to a maximum of $500,000.00

 

10Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

RANDALL
M. GRIFFIN

 

This Employment Agreement
(this “Agreement”), is made and entered into as of the 13th day of July, 2005
and is effective as of April 1, 2005, by and between Corporate Office
Properties L.P., a Maryland limited liability company (the “Employer”), and
Corporate Office Properties Trust, a Maryland business trust (“COPT”), and
Randall M. Griffin (the “Executive”).

 

RECITALS

 

A.            The
Executive and the Employer executed an agreement effective as of July 1,
2002 providing for the employment of the Executive by the former/current
Employer upon the terms and conditions therein stated (the “Prior Agreement”).

 

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

 

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

 

D.            COPT
has agreed to become a party to this Agreement for the purpose of undertaking
certain covenants and making certain commitments to the extent provided herein.

 

E.             It
is the intention of the Employer and the Executive that, notwithstanding the
date of execution hereof, the Prior Agreement shall be terminated and this
Agreement shall become effective as of April 1, 2005.

 

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

 

AGREEMENTS

 

1.             TERMINATION
OF PRIOR AGREEMENT.  The Prior Agreement
is hereby terminated and this Agreement shall become effective as of April 1,
2005 (the “Effective Date”).

 

2.             POSITION
AND DUTIES.  As of the Effective Date,
the Employer hereby employs the Executive as the President and Chief Executive
Officer of the Employer, or in such

 

 

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

 

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

 

(a)           BASE
SALARY.  The Executive shall receive an
aggregate annual minimum “Base Salary” at the annualized rate of Five Hundred
Twenty Thousand Dollars ($520,000.00) per annum, payable in periodic
installments in accordance with the regular payroll practices of the Employer.
Such Base Salary shall be subject to review annually by the Board and
Compensation Committee of COPT (“Compensation Committee”) during the term
hereof, in accordance with the established compensation policies of the
Compensation Committee.

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

4.             TERM
AND TERMINATION.

 

(a)           BASIC
TERM.  The Executive’s employment
hereunder shall be for a term commencing on the Effective Date and expiring on June 30,
2008 (the “Basic Term”). After the Basic Term, the Executive’s term of
employment shall automatically be extended for a continuous, self-renewing one (1) year
term without further action of the parties unless either party shall have
served written notice on the other at least six (6) months prior to the
expiration of the Basic Term that this Agreement shall terminate at the end of
the Basic Term.  If this Agreement is
extended beyond the Basic Term, either party may at any time thereafter give written
notice to the other party that the term of this Agreement will expire on the
date that is one (1) year following the date of such written notice.  Subject to the foregoing and other applicable
terms of this Agreement, this Agreement may be terminated by either party, with
or without cause, effective as of the first (1st) business day after written
notice to that effect is delivered to the other party.

 

(b)           PREMATURE
TERMINATION.

 

(i)            In the event of the termination of the employment of
the Executive under this Agreement by the Employer for any reason other than
expiration of the term hereof, termination upon disability in accordance with
the provisions of paragraph (f) of this Section 4, or a “for-cause”
termination in accordance with the provisions of paragraph (d) of this Section 4,
then notwithstanding any actual or allegedly available alternative employment
or other mitigation of damages by or available to the Executive, the Executive
shall be entitled to a “Termination Payment” equal to the sum of:  (w) three (3) times the rate of
annualized Base Salary then payable to the Executive, plus (x) three (3) times
the average of the three (3) most recent annual Performance Bonuses that
the Executive received. In the event of a termination governed by this subparagraph
(b) of Section 4, the Employer shall also: (y) allow a period of
eighteen (18) months following the termination of employment for the Executive
(but in no event beyond the expiration of any option term or period specified
in the option agreement with the Executive) to exercise any options granted
under any stock option or share incentive plan established by Employer or COPT
(“Stock Plan”); and (z) continue for the Executive (provided that such items
are not available to him by virtue of other employment secured after
termination) the perquisites, plans and benefits provided under the Employer’s
Perquisite Policy and Benefit Plans as of and after the date of termination,
[all items in (z) being collectively referred to as “Post-Termination
Perquisites and Benefits”], for the lesser of the number of full months the
Executive has theretofore been employed by the Employer (but not less than
twelve (12) months) or twenty four (24) months following such termination. The
payments and benefits provided under (w), (x), (y) and (z) above

 

3

 

by the Employer shall not be offset against or diminish any
other compensation or benefits accrued as of the date of termination.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

(d)           TERMINATION
FOR CAUSE.  The employment of the
Executive and this Agreement may be terminated “for cause” as hereinafter
defined.  Termination “for cause” shall
mean the termination of employment on the basis or as a result of (i) a
violation by the Executive of any applicable law or regulation respecting the
business of the Employer; (ii) the Executive’s conviction of a felony or
any crime involving moral turpitude; (iii) any act of dishonesty or fraud
or the Executive’s commission of an act, which in the opinion of the Board of
Directors, disqualifies the Executive from serving as an officer or director of
the Employer; (iv) the willful or negligent failure of the Executive to
perform his duties hereunder, which failure continues for a period of thirty
(30) days after written notice thereof is given to the Executive; or (v) a
violation of any provision of the Code of Business Conduct and Ethics.  In the event the Employer terminates the
Executive’s employment “for cause” under this Paragraph 4(e), the Executive
shall be entitled only to the Base Salary through the date of termination of
the Executive’s employment and any other benefits otherwise due in accordance
with applicable plans, programs, or agreements with the Employer.

 

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

 

(f)            TERMINATION
UPON DISABILITY. The Employer may terminate the Executive’s employment after
the Executive is determined to be disabled under the long-term disability
program of the Employer then covering the Executive or by a physician engaged
by the Employer and reasonably approved by the Executive. In the event of a
dispute regarding the Executive’s “disability,” such dispute shall be resolved
through arbitration as provided in paragraph (d) of Section 11
hereof, except that the arbitrator appointed by the American Arbitration
Association shall be a duly licensed medical doctor. The Executive shall be
entitled to the compensation and benefits provided for under this Agreement
during any period of incapacitation occurring during the term of this
Agreement, and occurring prior to the establishment of the Executive’s “disability”
during which the Executive is unable to work due to a physical or mental
infirmity. Notwithstanding anything contained in this Agreement to the
contrary, until the date specified in a notice of termination relating to the
Executive’s disability, the Executive shall be entitled to return to his
positions with the Employer as set forth in this Agreement, in which event no
disability of the Executive will be deemed to have occurred.  Notwithstanding the vesting schedule otherwise
applicable, in the event of a termination governed by this subparagraph (f) of
Section 4, the Executive shall be fully vested in all of the Executive’s
options and restricted shares under any Stock Plan or similar program.

 

(g)           TERMINATION
UPON CHANGE OF CONTROL.

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

or substantial
liquidation or dissolution, or an agreement for the sale or other disposition,
of all or substantially all of the assets of COPT or the Employer.

 

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

 

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

 

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

 

5.             CONFIDENTIALITY
AND LOYALTY. The Executive acknowledges that heretofore or hereafter during the
course of his employment he has produced and received, and may hereafter
produce, receive and otherwise have access to various materials, records, data,
trade secrets and information not generally available to the public
(collectively, “Confidential

 

7

 

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

 

6.             NON-COMPETITION COVENANT.

 

(a)           RESTRICTIVE
COVENANT. The Employer and the Executive have jointly reviewed the tenant
lists, property submittals, logs, broker lists, and operations of the Employer,
and have agreed that as an essential ingredient of and in consideration of this
Agreement and the payment of the amounts described in Sections 3 and 4 hereof,
the Executive hereby agrees that, except with the express prior written consent
of the Employer, for a period equal to the lesser of the number of full months the Executive has at any time been employed by
the Employer or twenty-four (24) months after the termination of the Executive’s
employment with the Employer (the “Restrictive Period”), he will not directly
or indirectly compete with the business of the Employer, including, but not by
way of limitation, by directly or indirectly owning, managing, operating,
controlling, financing, or by directly or indirectly serving as an employee,
officer or director of or consultant to, or by soliciting or inducing, or
attempting to solicit or induce, any employee or agent of Employer to terminate
employment with Employer and become employed by any person, firm, partnership,
corporation, trust or other entity which owns or operates a business similar to
that of the Employer (the “Restrictive Covenant”). For purposes of this
subparagraph (a), a business shall be considered “similar” to that of the
Employer if it is engaged in the acquisition, development, ownership,
operation, management or leasing of suburban office property (i) in any
geographic market or submarket in which the Employer owns more than 1,000,000
s.f. of properties either as of the date hereof or as of the date of
termination of the Executive’s employment. If the Executive violates the
Restrictive Covenant and the Employer brings legal action for injunctive or
other relief, the Employer shall not, as a result of the time involved in
obtaining such relief, be deprived of the benefit of the full period
of the Restrictive Covenant. Accordingly, the Restrictive Covenant shall be
deemed to have the duration specified in this paragraph (a) computed from
the date the relief is granted but reduced by the time between the period when
the Restrictive Period began to run and the date of the first violation of the
Restrictive Covenant by the Executive. In the event that a successor of the
Employer assumes and agrees to perform this Agreement or otherwise acquires the
Employer, this Restrictive Covenant shall continue to apply only to the primary
service area of the Employer as it existed immediately before such assumption
or acquisition and shall not apply to any of the successor’s other offices or
markets. The foregoing Restrictive Covenant shall not

 

8

 

prohibit the Executive
from owning, directly or indirectly, capital stock or similar securities which
are listed on a securities exchange or quoted on the National Association of
Securities Dealers Automated Quotation System which do not represent more than
five percent (5%) of the outstanding capital stock of any corporation.

 

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

 

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

 

8.             INTEREST
IN ASSETS. Neither the Executive nor his estate shall acquire hereunder any
rights in funds or assets of the Employer, otherwise than by and through the
actual payment of amounts payable hereunder; nor shall the Executive or his
estate have any power to transfer, assign (except into a trust for purposes of
estate planning), anticipate, hypothecate or otherwise encumber in advance any
of said payments; nor shall any of such payments be subject to seizure for the
payment of any debt, judgment, alimony, separate maintenance or be transferable
by operation of law in the event of bankruptcy, insolvency or otherwise of the
Executive.

 

9.             INDEMNIFICATION.

 

(a)           The
Employer shall provide the Executive (including his heirs, personal
representatives, executors and administrators), during the term of this
Agreement and thereafter

 

9

 

throughout all applicable
limitations periods, with coverage under the Employer’s then-current directors’
and officers’ liability insurance policy, at the Employer’s expense.

 

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

 

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

 

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

 

11.           GENERAL
PROVISIONS.

 

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

 

10

 

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

 

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

 

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

 

(e)           PRESS
RELEASES AND PUBLIC DISCLOSURE. Any press release or other public communication
by either the Executive or the Employer with any other person concerning the
terms, conditions or circumstances of Executive’s employment, or the
termination of such employment, shall be subject to prior written approval of
both the Executive and the Employer, subject to the proviso that the Employer
shall be entitled to make requisite and appropriate public disclosure of the
terms of this Agreement, without the Executive’s consent or

 

11

 

approval, as required
under applicable statutes, and the rules and regulations of the Securities
and Exchange Commission and the Stock Exchange on which the shares of Employer
may from time to time be listed.

 

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

 

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

 

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

 

 

	
  “Employer”

  	
  “Executive”

  	
   

  
	
  Corporate Office
  Properties, L.P., a

  Maryland limited liability company

  	
   

  	
   

  
	
  By: Corporate Office
  Properties Trust,

  General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jay H. Shidler

  	
   

  	
  /s/ Randall M. Griffin

  	
   

  
	
   

  	
  Jay H. Shidler

  	
  Randall M. Griffin

  	
   

  
	
   

  	
  Chairman of the Board

  	
  8815 Centre Park Drive,
  Suite 400

  Columbia, MD 21045

  	
   

  
	
   

  	
   

  	
   

  
	
  Corporate Office
  Properties Trust, a Maryland

  business trust

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jay H. Shidler

  	
   

  	
   

  	
   

  
	
   

  	
  Jay H. Shidler

  	
   

  	
   

  
	
   

  	
  Chairman of the Board

  	
   

  	
   

  

 

12

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