Document:

ex10-42.htm

    Exhibit
10.42

    

    AGREEMENT
OF PURCHASE AND SALE OF MEMBERSHIP INTERESTS

    

    This AGREEMENT OF PURCHASE AND SALE OF
MEMBERSHIP INTERESTS (this "Agreement") is made as of the
1st day of
November, 2008 (the "Effective
Date") by and between CHESAPEAKE CUSTOM HOMES, L.L.C., a
Maryland limited liability company (the "Seller") and OLD LINE BANCSHARES, INC., a Maryland
corporation (the "Purchaser").

    

    Explanatory
Statement

    

    A.           Seller
is the owner of twelve and one-half percent (12.5%) of the Member Interest and
rights (collectively hereinafter referred to as "Membership Interest" and as
defined in the Company's Operating Agreement, as amended) in Pointer Ridge
Office Investment, LLC, a Maryland limited liability company (the "Company").

    

    B.           
Seller has agreed to sell to Purchaser and Purchaser has agreed to purchase from
Seller, an twelve and one-half percent (12.5%) Membership Interest and
Percentage of Membership Interest (as defined in the Company's Operating
Agreement, as amended) in the Company from the Seller's Membership
Interest.

    

    C.           The
parties desire to set forth in this Agreement the terms and conditions for such
sale.

    

    D.           Capitalized
terms used in this Agreement, including but not limited to the terms "Member" and "Interest" not otherwise
defined when first used shall have the meanings defined in the Maryland Limited
Liability Company Act set forth in Title 4A of the Corporations and Associations
Articles of the Annotated Code of Maryland (the "Act").

    

    NOW, THEREFORE, in
consideration of the provisions of the Explanatory Statement (which shall
constitute a substantive part of this Agreement) and TEN DOLLARS ($10.00) and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties prior to the execution and delivery hereof, the
parties hereto hereby agree as follows:

     

    

    1.           Purchase
and Sale.  Seller agrees to sell and assign to the Purchaser
and Purchaser agrees to purchase from the Seller, upon the terms and conditions
hereinafter set forth, all of Seller's twelve and one-half percent (12.5%)
Membership Interest (as defined in the Company's Operating 

     

    
      
         

      

      
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    Agreement,
as amended) and Percentage of Membership Interest (as defined in the Company's
Operating Agreement, as amended) from the Seller's Membership Interest (the
"Transferred 12.5% Interest and
Percentage").

    

    2.           Purchase
Price.  The total purchase price ("Purchase Price") for the
Transferred 12.5% Interest and Percentage is Two Hundred five Thousand
($205,000.00) Dollars.

    

    3.           Seller's
Warranties and Representations.  Seller, to the best of its
knowledge, warrants and represents to the Purchaser, as of the date hereof and
as of the Closing Date, and acknowledges that the Purchaser has relied thereon
that:

    

    i.           The
Seller is the owner and holder absolutely of the Membership Interest and has
good and marketable title to the Membership Interest free and clear of any and
all security interests, agreements, restrictions, conditions, equitable
interests, claims, adverse claims, options, charges, liens, pledges, rights of
first refusal (due to a waiver agreed upon by the Members of the Company), and
other encumbrances of any nature or kind whatsoever including, but not limited
to, any restrictions on use, voting, transfer, receipt of income, or exercise of
any other attribute of ownership. Seller does
not directly or indirectly own of record or beneficially or have any direct or
indirect interest in any other securities [as defined in the federal Securities
Act of 1933 (the "Act") and hereinafter referred to as "Securities"] or any
indebtedness of the Company.

    

    ii.           The
Transferred 12.5% Interest and Percentage constitutes a twelve and one-half
percent (12.5%) Member Interest in the Company.

    

    iii.           The
Seller has not filed, voluntarily or involuntarily, for bankruptcy relief under
the United States Bankruptcy Code or any state insolvency statute.

    

    iv.           Neither
the entering into of this Agreement nor the consummation of the transactions
contemplated hereby will constitute or result in a violation or breach by Seller
of any judgment, order, writ, injunction or decree issued against or imposed
upon it, or to Seller's knowledge will result in a violation of any applicable
law, order, rule or regulation or any governmental authority.  There
is no action, suit, proceeding or investigation pending or, to Seller's
knowledge, threatened, which would prevent any action contemplated by this
Agreement or which questions the validity or enforceability of the transaction
contemplated by this Agreement or any action taken pursuant
hereto.  No approval, consent, order or authorization of, or
designation, registration or filing (other than for recording purposes) with any
governmental authority is required in connection with the due and valid
execution and delivery of this Agreement and compliance with the provisions
hereof and the consummation of the transactions contemplated
hereby.

     

    
      
         

      

      
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    v.           The
Seller has the full, absolute and unrestricted right, power and authority to
execute, acknowledge, seal and deliver this Agreement and to perform the
transactions contemplated by this Agreement.

    

    vi.           Seller
is not a "foreign person" within the meaning of Section 1445 of the Internal
Revenue Code, as amended.

    

    vii.           This
Agreement (including the Exhibits) does not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the
statements contained herein not misleading. There is no fact known to the Seller
which is not disclosed in this Agreement which materially adversely affects the
accuracy of the representations and warranties contained in this
Agreement.

    

    The representations and warranties
contained in this Section 3(i) through 3(vii) shall survive Closing for a period
of one (1) year.  The representations and warranties of Seller shall
be true and correct as of the Effective Date and as of the Closing
Date.

    

    4.           Purchaser’s
Warranties and Representations.  Purchaser, warrants and
represents to the Seller, as of the date hereof and as of the Closing Date, and
acknowledges that the Purchaser has relied thereon that:

    

    i.           It
is a corporation, duly organized, validly existing, and in good standing under
the laws of the State of Maryland.

    

    ii.           The
persons executing this Agreement and all instruments in connection therewith
are, or at the appropriate time will be, duly authorized to execute such
instruments on behalf of Purchaser and to bind Purchaser.

    

    The
representations and warranties contained in this Paragraph 4(i) and 4(ii) shall
survive Closing.  The representations and warranties of Purchaser
shall be true and correct as of the Effective Date and as of the Closing
Date.

    

    5.           Conditions
Precedent.

    

    i.           Conditions
Precedent to Purchaser's Obligations.  The obligation of
Purchaser under this Agreement to purchase the Transferred 12.5% Interest and
Percentage is subject to the fulfillment by Seller or waiver by Purchaser of the
following:

    

    a.           On
the Closing Date, the Seller shall have delivered those documents required of
Seller under this Agreement.

     

    
      
         

      

      
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    b.           On
the Closing Date, the Seller must execute and deliver to the Purchaser (and all
other parties to the same must execute) a Third Amendment to Operating Agreement
in the form attached hereto as Exhibit 2.

    

    ii.           Conditions
Precedent to Seller's Obligations.  The obligation of Seller
under this Agreement to sell the Transferred 12.5% Interest and Percentage and
to go to Closing hereunder is subject to the fulfillment by Purchaser or waiver
by Seller of the following:

    

    a.           Delivery
to the Seller of the Purchase Price, the Closing costs and any other monies and
documents required to be paid, executed or provided by the Purchaser
hereunder.

    

    b.           On
the Closing Date, the Purchaser must execute and deliver (and all other parties
to the same must execute) to the Purchaser a Third Amendment to Operating
Agreement in the form attached hereto as Exhibit 2.

    

    6.           Time and
Expenses of Closing.

    

    i.           The
Closing hereunder shall take place promptly after this Agreement is executed by
all of the parties (the "Closing Date").  On
the Closing Date, the Seller will execute and deliver to the Purchaser (and
Purchaser shall execute) an Assignment of Membership Interest and Percentage in
the form attached hereto as Exhibit 1.   On
the Closing Date, both parties shall deliver an executed original Third
Amendment to Operating Agreement (and shall cause the other parties to the same
to execute and deliver) in the form attached hereto as Exhibit 2.

    

    ii.           
On the Closing Date and from time to time after the Closing Date, the Seller
shall execute such other and further documents as may be reasonably necessary or
required in order to consummate Closing in accordance with the provisions of
this Agreement, including standard title company questionnaires and affidavits
and closing statements.

    

    iii.           Seller
and Purchaser assume and contemplate that no realty transfer or recordation
taxes fees shall be due or payable either to the State of Maryland, any county
of the State of Maryland, or to any other governmental authority by reason of
this transaction.  Notwithstanding such assumption, however, in the
event that either Seller or Purchaser shall be required to pay to any
governmental authority a transfer tax or recordation tax or fee as a result of
this transaction, the parties shall pay all of such taxes or fees and any
interest and penalties accruing thereon in equal portions (50/50).

     

    
      
         

      

      
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    7.           Termination;
Default; Remedies.

    

    i.           If
the Seller fails to consummate the Closing of this Agreement when required to do
so in accordance with the terms of this Agreement, which default by the Seller
shall remain uncured for a period of fifteen (15) Business Days after written
notice by the Purchaser to the Seller, the Purchaser shall be entitled, as its
sole remedy, to enforce specific performance of this Agreement.

    

    ii.           If
Purchaser fails to consummate the Closing of this Agreement when required to do
so in accordance with the terms of this Agreement, which default shall remain
uncured for a period of fifteen (15) Business Days after written notice by the
Seller to the Purchaser, the Seller shall be entitled, as its sole remedy, to
enforce specific performance of this Agreement.

    

    iii.           The
provisions of paragraph 7(i) and (ii) shall govern and control with respect to a
default by a party to this Agreement in failing to Close but shall not be deemed
a limitation of the rights of Seller or Purchaser subsequent to the Closing Date
based on a default by the other party which rights and remedies shall be without
limitation.

    

    8.           Notices.
All notices, demands and requests and other communications required or permitted
hereunder shall be in writing, and shall be deemed received by the party to whom
such notice is directed (i) if by hand-delivered, the
date of delivery;
(ii)  if sent by facsimile, on the date of transmission
provided that the machine sending any notice by facsimile must generate a
confirmation of transmission contemporaneously with the sending of such notice
and a copy of such notice must also be sent on the same day by one of the other
means specified in this paragraph 8; or (iii) if sent by private
overnight express carrier, such as Federal Express, on the first Business Day
after the deposit of same with such private overnight express carrier sent for
next Business Day delivery, addressed to the parties and their facsimile numbers
as follows:

    

    

    If
to Seller:

    Chesapeake
Custom Homes, LLC

    c/o Greg
Wilby, General Manager

    1525
Pointer Ridge Place, Suite 301

    Bowie,
Maryland 20716

    Fax No.:
(301) 218-2208

    

    With
a Copy to:

    Darin S.
Levine, Esquire

    Tenenbaum
& Saas, P.C.

    4504
Walsh Street

     

    
      
         

      

      
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    Suite
200

    Chevy
Chase, Maryland 20815

    Fax No.
301-961-5305

    

    If
to Purchaser:

    Old Line
Bancshares, Inc.

    c/o James
W. Cornelsen, President

    1525
Pointer Ridge Place

    Bowie MD
20716

    

    Each party may change their address for
notice purposes by a notice sent in accordance with the provisions this
paragraph 8. No notice shall be deemed sent or effective unless a copy such
notice is also sent to any person or entity designated to receive a
copy.

    

    9.           Complete
Agreement.  This Agreement embodies the complete agreement
between the parties hereto and cannot be varied or modified except by the
written agreement of the parties.

    

    10.           Parties
Bound.  This Agreement shall be binding upon and inure to the
benefit of Seller and Purchaser, and their respective heirs, personal
representatives, successors and assigns.  This Agreement may be
assigned by the Purchaser.

    

    11.           Survival
of Representations and Warranties.  The representations,
provisions and warranties set forth in this Agreement shall survive Closing
hereunder for a period of one (1) year and shall not be merged in the Assignment
of the Membership Interest and Percentage by the Seller to the
Purchaser.

    

    12.           Commissions.
Each party warrants to each other that no realtor or third party has been the
procuring cause of this Agreement or is entitled to the receipt of any
commission or payment of money as a result of the execution of this
Agreement.  Each party agrees to indemnify and hold harmless the other
from and against any and all loss, cost, damage or expense, including reasonable
attorney fees, as a result of any claims made for a fee or commission from any
party as a result of any action by one of the parties to this
Agreement.

    

    13.           Governing
Law.  This Agreement is to be governed by and construed in
accordance with the laws of the State of Maryland.

    

    14.           Indemnification
of Purchaser.  The Seller agrees to indemnify and hold harmless
the Purchaser from and against any and all actual losses, damages, liabilities,
obligations, costs and expenses of any kind and nature whatsoever, including,
without limitation, interest, penalties, court costs and reasonable

     

    
      
         

      

      
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     attorneys’
fees and expenses (collectively “Damages”) suffered by, imposed
upon or incurred by the Purchaser by reason of or arising out of any
misrepresentation or breach of any representation, warranty, obligation,
agreement or covenant made by the Seller in this Agreement.

    

    15.           Binding
Effect.  This Agreement shall be binding on and inure to the
benefit of the parties, and their and each of their respective successors and
assigns.

    

    16.           Date of
Performance.  As used in this Agreement, the term "Business Day" shall mean any
day which is not a Saturday, Sunday, Maryland State or Federal holiday. If the
date of any act, notice, or other matter contained within this Agreement shall
fall on day which is not a Business Day (the "Performance Date"), the
Performance Date shall automatically be extended to the first day thereafter
which is a Business Day.

    

    17.           Litigation.  The
parties agree that in the event of any litigation between the parties pertaining
to this Agreement, the party prevailing in such litigation (as determined by the
Judge or tribunal hearing such litigation) shall be entitled to receive from the
non-prevailing party reasonable attorney fees and costs of
litigation.

    

    18.           Fair
Construction.  The parties hereby agree that they have had the
opportunity to be represented by counsel in connection with this transaction and
that this Agreement shall be interpreted (if any interpretation be required)
according to its fair meaning and shall not be construed against either party as
the draftsman hereof.

    

    19.           Miscellaneous.  Whenever
used herein and as the context so requires, the singular shall include the
plural, and any gender shall include all genders and the
neuter.  Captions to this Agreement are intended for the convenience
of the parties only and shall not be deemed to reflect any substitutive meaning
to this Agreement.

    

    20.           Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original, but all of which shall be deemed to be one and the same
document.

    

    (Balance
of this page intentionally left blank)

    

    
      
         

      

      
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    IN WITNESS WHEREOF, the
parties have set their hands and seals as of the year and day below
written.

    

    
      	 
      	 
      	
              SELLER:

            
	 
      	 
      	 
      
	 
      	 
      	
              CHESAPEAKE
      CUSTOM HOMES L.L.C.,

            
	 
      	 
      	
              a
      Maryland limited liability company

            
	 
      	 
      	 
      
	 
      	 
      	
              By:  ______________________________(SEAL)

            
	 
      	 
      	 	
              Greg
      S. Wilby, General Manager

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              PURCHASER:

            
	 
      	 
      	 
      
	 
      	 
      	
              OLD
      LINE BANCSHARES, INC.,

            
	 
      	 
      	
              a
      Maryland corporation

            
	 
      	 
      	 
      
	 
      	 
      	
              By:  ______________________________(SEAL)

            
	 
      	 
      	 	
              James
      W. Cornelsen,

            
	 
      	 
      	 	
              President

            

    

    

    

    

    
      
         

      

      
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    Exhibit
1

    

    FORM
OF ASSIGNMENT OF MEMBERSHIP INTEREST AND PERCENTAGE

     

     

     

    
      
         

      

      
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    Exhibit
2

    

    FORM
OF THIRD AMENDMENT TO OPERATING AGREEMENT

    

    

    

    10ex10-43.htm

    Exhibit
10.43

    THIRD
AMENDMENT

    TO

    OPERATING
AGREEMENT

    FOR

    POINTER
RIDGE OFFICE INVESTMENT, LLC

    

    

    THIS THIRD AMENDMENT TO OPERATING
AGREEMENT FOR POINTER RIDGE OFFICE INVESTMENT, LLC, a Maryland limited liability
company is intended to be made and effective for all purposes and in all
respects as of this 1 day of November, 2008, by and between J. WEBB, INC., a Virginia corporation, MICHAEL M.
WEBB REVOCABLE TRUST dated December 21, 1989, LUCENTE ENTERPRISES, INC., a Maryland
corporation, and OLD
LINE BANCSHARES, INC., a Maryland corporation, all as
Members.

    

    Explanatory
Statement

    

    A.           Pointer
Ridge Office Investment, LLC, is a Maryland limited liability company (the
"LLC"), having been
formed pursuant to Articles of Organization dated July 15, 2004 and filed with
the Maryland State Department of Assessments and Taxation on July 19, 2004, as
amended.

    

    B.           The
LLC is now operated pursuant to an Operating Agreement dated July 22, 2004, as
amended by a First Amendment to Operating Agreement dated November 2, 2005, and
as further amended by that certain Second Amendment to Operating Agreement dated
July 20, 2006 (collectively the "Operating
Agreement").

    

    C.           The
Members desire to acknowledge and confirm the membership of the LLC, change the
Manager of the LLC, confirm various exhibits to the Operating Agreement, as well
as confirm other ministerial changes, as provided herein.

    

    NOW THEREFORE, in
consideration of the foregoing, the provisions of this Explanatory Statement
(which Explanatory Statement shall be considered a substantive part of this
Agreement) the Members hereby agree that the Operating Agreement of the LLC is
hereby amended as follows:

    

    1.           In
Section 2 of the Operating Agreement entitled "Definitions", the definition for
"Cheseapeake" and "Manager" shall be deleted in its
entirety and replaced as follows:

     

    
      
        
        

      

      
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    Manager:  Lucente
Enterprises, Inc., a Maryland corporation.

    

    2.           Any
and all references to "Managing Member" shall refer to the Manager, Lucente
Enterprises, Inc.

     

    3.           In
Section 1.02 of the Operating Agreement entitled "Place of Business", the
principal business office of the Company in the State of Maryland shall be 1525
Pointer Ridge Place, Suite 301, Bowie, Maryland 20716.

    

    4.           In
Section 1.03 of the Operating Agreement entitled "Registered Office and Agent",
the Resident Agent shall continue to be Greg Wilby, but the Resident Agent
address shall be at 1525 Pointer Ridge Place, Suite 301, Bowie, Maryland
20716.

    

    5.           The
Operating Agreement is erroneously missing Exhibit 4 (Description of Real
Property).  Exhibit 4 attached hereto is adopted and incorporated as
Exhibit 4 to the Operating Agreement.

    

    6.           The
Operating Agreement is erroneously missing Exhibit 5
(Budget).  Exhibit 5 attached hereto is adopted and incorporated as
Exhibit 5 to the Operating Agreement.

    

    7.           In
accordance with Section 9.03 of the Operating Agreement and by virtue of a
Transfer of Limited Liability Company Interest dated December 10, 2007 by and
between Michael M. Webb, individually ("Webb") and Michael M. Webb,
Trustee of the Michael M. Webb Revocable Trust Agreement ("Webb Revocable Trust"), the
List of Members attached to the Operating Agreement as Exhibit 1 is no longer
accurate.

    

    8.           In
accordance with Section 9.07 of the Operating Agreement and by virtue of an
Agreement for Purchase and Sale of Member Interests dated November 1, 2008 by
and between CHESAPEAKE CUSTOM
HOMES, L.L.C., a Maryland limited liability company ("Chesapeake") and OLD LINE BANCSHARES, INC., a Maryland
corporation ("Old
Line"), as well as an Assignment of Membership Interests dated November
1, 2008, the List of Members attached to the Operating Agreement as Exhibit 1 is
no longer accurate.

    

    9.           Based
upon the aforementioned transfers, Exhibit 1 as attached to the Operating
Agreement is hereby deleted in its entirety and replaced by Exhibit 1 attached
hereto and incorporated herein.

    

    10.           By
its execution hereof, the Webb Revocable Trust, as Transferee of the Membership
Interest of Webb, does hereby agree to be 

     

    
      
        
        

      

      
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    bound by
and observe and perform all of the duties and obligations of the Members in the
Company.  Moreover, by execution below, the Webb Revocable Trust
hereby confirms that it is acquiring the Membership Interest of Webb for
investment and not resale.

    

    11.           By
his execution hereof, Webb, as Transferor of its Membership Interest to the Webb
Revocable Trust, hereby confirms its transfer of membership to the Webb
Revocable Trust and that it has no further interest as a Member or in any
capital account or other asset associated with the Company.

    

    12.           By
its execution below, all Members of the Company, Lucente Enterprises as Manager,
as well as Webb as Transferor and the Webb Revocable Trust as Transferee, have
approved the transfer of Webb's Membership Interest to the Webb Revocable Trust
and hereby confirm that it is a "Permitted Transfer" in accordance with Section
9.03 of the Operating Agreement.

    

    13.           By
its execution hereof, Old Line, as Transferee of the Membership Interest of
Chesapeake, does hereby agree to be bound by and observe and perform all of the
duties and obligations of the Members in the Company.  Moreover, by
execution below, Old Line hereby confirms that it is acquiring the Membership
Interest of Chesapeake for investment and not resale.

    

    14.           By
his execution hereof, Chesapeake, as Transferor of its Membership Interest to
Old Line, hereby confirms its transfer of membership to Old Line and that it has
no further interest as a Member or in any capital account or other asset
associated with the Company.

    

    15.           By
its execution below, all Members of the Company, Lucente Enterprises as Manager,
as well as Chesapeake as Transferor and Old Line as Transferee, have approved
the transfer of Chesapeake's Membership Interest to Old Line and hereby waive
all of the requirements in Section 9.07 of the Operating Agreement as they may
pertain to this transfer.

    

    16.           Inentionally
deleted

    

    17.           Except
as specifically herein set forth, all other terms, conditions and provisions of
the Operating Agreement shall continue in full force and effect and shall not be
modified and amended by the execution hereof.

    
 

    
      
        
        

      

      
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    To evidence our consent we hereby
execute this document, which may be executed in counterparts and/or by
facsimile, each of which shall be deemed to be an original, but all of which
shall be deemed to be one and the same document.

    

    IN WITNESS WHEREOF the
undersigned, constituting all of the Members of the LLC, have hereunto set their
respective hands and seals effective as of the year and day first above
written.

    

    
      	
               

            	MEMBERS:	 
      	 
      
	 
      	 
      	 
      	 
      
	
               

            
	 	J. WEBB, INC., a Virginia
      corporation	 
      	 
      
	 	By:  /s/ Michael M.
      Webb                                               
      (SEAL)	
               

            
	 
      	
              Michael
      M. Webb, President

            
	 
      	 
      	 
      	 
      
	 	By:
      /s/ Michael M.
      Webb                                                
      (SEAL)	
               

            
	 
      	
              MICHAEL
      M. WEBB, Trustee of the

            
	 
      	
              Michael
      M. Webb Revocable Trust

            
	 
      	
              Agreement

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 	LUCENTE
      ENTERPRISES, INC., a	
               

            
	 	Maryland
      corporation	 
	
               

            	 
      
	 	 
	 
      	By:  /s/ Frank Lucente,
      Jr.                                             (SEAL)
      	 
      	 
      
	 
      	
              Frank
      Lucente, Jr. President

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 	OLD
      LINE BANCSHARES, INC., a	
               

            
	 	Maryland
      corporation	 
	
               

            
	 
	 
      	By:  /s/ James W.
      Cornelse                                           
      (SEAL) 	 
      	 
      
	 
      	
              James
      W. Cornelsen,

            
	 
      	
              President

            

    

    

    (SIGNATURES
CONTINUED ON THE NEXT PAGE)

     

    
      
        
        

      

      
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              AS
      MANAGING MEMBER

            	 
      
	
              OF
      THE COMPANY AND

            	 
      
	
              NOT
      AS A MEMBER:

            	 
      
	 
      	 
      
	
              LUCENTE
      ENTERPRISES, INC., a

            	 
      
	
              Maryland
      corporation

            	 
      
	 
      	 
      
	
              By:  /s/ Frank
      Lucente        (SEAL)

            	
               

            
	
                      Frank
      Lucente, Jr. President

            	 
      
	 
      	 
      
	 
      	 
      
	
              TRANSFEROR:

            	 
      
	 
      	 
      
	
              /s/
      Michael M.
      Webb          
      (SEAL)

            	
               

            
	
              Michael
      M. Webb, individually

            	 
      
	 
      	 
      
	 
      	 
      
	
              TRANSFEREE:

            	 
      
	 
      	 
      
	
              MICHAEL
      M. WEBB REVOCABLE TRUST

            	 
      
	
              Dated
      December 21, 1989

            	 
      
	 
      	 
      
	
              By:  /s/
      Michael M. Webb     (SEAL)

            	
               

            
	
                      Michael
      M. Webb, Trustee

            	 
      
	 
      	 
      
	 
      	 
      
	
              TRANSFEROR:

            	 
      
	 
      	 
      
	
              CHESAPEAKE
      CUSTOM HOMES L.L.C., a Maryland limited liability company

            	 
      
	 
      	 
      
	
              By:  /s/ Greg
      S. Wilby          
      (SEAL)

            	
               

            
	
                      Greg
      S. Wilby, General Manager

            	 
      
	 
      	 
      
	 
      	 
      
	
              TRANSFEREE:

            	 
      
	 
      	 
      
	
              OLD
      LINE BANCSHARES, INC., a

            	 
      
	
              Maryland
      corporation

            	 
      
	 
      	 
      
	
              By:  /s/ James
      W. Cornelsen  (SEAL)

            	
               

            
	
                       James
      W. Cornelsen,

            	 
      
	
                       President

            	 
      

    

    

    (SIGNATURES
CONTINUED ON THE NEXT PAGE)

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
1

    OPERATING
AGREEMENT FOR

    POINTER
RIDGE OFFICE INVESTMENT, LLC

    

    
      	
               

              Member

            	
              Initial
      Capital Contribution

            	
              Percentage
      of Membership Interests

            
	
              Lucente
      Enterprises, Inc.

              1525
      Pointer Ridge Place, Suite 301

              Bowie,
      Maryland 20716

            	
              $137,500

            	
              12.5%

               

               

               

               

            
	
              J.
      Webb, Inc.

              7857
      Heritage Drive

              Suite
      300

              Annandale,
      Virginia 22003

               

            	
              $220,000

            	
              20%

               

               

               

               

               

            
	
              Michael
      M. Webb, Trustee of

              The
      Michael M. Webb Revocable Trust Agreement

              7857
      Heritage Drive

              Suite
      300

              Annandale,
      Virginia 22003

               

            	
              $55,000

            	
              5%

               

            
	
              Old
      Line Bancshares, Inc.

              P.O.
      Box 1890, Waldorf, Md. 20604

              Street
      address:

              2995
      Crain Highway, Waldorf, Md. 20601

               

               

               

            	
              $687,500

            	
              62.5%

               

               

               

               

            
	
              TOTAL

            	
              $
      1,100,000

            	
              100%

            

    

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    Exhibit
4

    (Description
of Property)

    

    All that
piece of parcel of land situate, lying and being in Prince George's County,
Maryland, described as follows to wit:

    

    Parcel
lettered "E", in Block numbered Thirty (30), in the Subdivision known as
"POINTER RIDGE AT BELAIR VILLAGE", as per Plat thereof recorded among the Land
Records of Prince George's County, Maryland, as recorded in Plat Book WWW78 at
Plat 37.  Being in the 7th
Election District of said County.

    

    Tax ID#
07-0724674

    

    

    

    
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    Exhibit
5

    (Budget)

    

    See
Attached Job Cost Summary.

    

    
 

     

    

      8

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