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                              EMPLOYMENT AGREEMENT

        Employment Agreement (the "Employment Agreement") made as of this 31st
day of July, 2004, by and between TAMMY CASE, an individual residing at 9
Carriage Lane, Sparta, New Jersey 07871 (the "Employee"), SUSSEX BANK, a state
chartered bank with its principal place of business located at 399 State Highway
23, Franklin, New Jersey 07416 (the "Employer").

        WHEREAS, the Board of Directors of the Employer has determined that it
is in the best interests of the Employer to enter into this Agreement with
Employee, and has authorized the Employer to enter into this Agreement;

        WHEREAS, the Employee agrees to be employed pursuant to the terms and
conditions of this Agreement;

        NOW, THEREFORE, in consideration of the premises and covenants contained
herein, and with the intent to be legally bound hereby, the parties hereto
hereby agree as follows:

        1.      EMPLOYMENT. The Employer agrees to employ the Employee, and the
Employee hereby accepts such employment, upon the terms and conditions set forth
herein.

        2.      POSITION AND DUTIES. The Employee shall be employed as Executive
Vice President., Loan Administration of the Employer (the "Position") to perform
such services commensurate with that capacity as are usual and customary for
comparable institutions and as shall from time-to-time be established by the
Chief Executive Officer, President and the Board of Directors of the Employer.
Employee agrees that she will devote her full business time and efforts to her
duties hereunder.

        3.      COMPENSATION. Employer shall pay to the Employee compensation
for her services as follows:

                (a)     BASE SALARY. The Employee shall be entitled to receive,
commencing upon the date of this Agreement, an annual base salary (the "Base
Salary") of $97,000, which shall be payable in installments in accordance with
Employer's usual payroll method. Annually thereafter, on or prior to the
anniversary date of this Agreement, the Chief Executive Officer, President and
Board of Directors shall review the Employee's performance, the status of
Employer and such other factors as the Board of Directors or a committee thereof
shall deem appropriate and shall adjust the Base Salary accordingly. Employee
acknowledges that her Base

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Salary hereunder may be adjusted upward or downward; provided, however, that in
no event will her Base Salary be adjusted downward below the minimum base salary
established by the Employer as part of its regular annual employee review
process for employees having the same grade as Employee.

                (b)     DISCRETIONARY BONUS. Employee shall be entitled to
participate in any cash bonus program(s) established by Employer for its
executive officers, subject to the terms and conditions of any such
program(s),including the attainment of goals established by the Board of
Directors of Employer or any committee thereof.

                (c)     STARTING BONUS. Upon commencement of employment
hereunder, Employee shall be entitled to a signing bonus of 1,000 shares of the
common stock ( the "SBB Stock") of Sussex Bancorp, the parent company of the
Employer (the "Bonus Shares") . The Bonus Shares will be subject to forfeiture
upon termination of employment of Employee for any reason, other than a
termination without cause by Employer, until December 31, 2004. Thereafter, such
shares shall be fully vested and owned by Employee without risk of forfeiture.
The Bonus Shares shall be issued pursuant to an exemption from the Securities
Act of 1933, (the "Securities Act") and will therefore be subject to limits on
transferability. Pursuant to the requirements of the Securities Act, Employee
must hold the Bonus Shares for one (1) year. Thereafter, the Bonus Shares may
only be transferred in accordance with Securities and Exchange Commission Rule
144. The certificates representing the Bonus Shares shall bear a legend
referencing such restrictions.

                (d)     PRODUCTION BONUS. Provided that the Employer's net loan
portfolio at December 31, 2005 is 15% larger than Employers net loan portfolio
at December 31, 2004, Employee shall be entitled to a production bonus of 1,000
shares of SBB Stock to be delivered no later than March 31, 2006. In addition,
provided that the Employer's net loan portfolio at December 31, 2006 is 15%
larger than the Employer's net loan portfolio at December 31, 2005, Employee
shall be entitled to an additional production bonus of 1,000 shares of SBB Stock
to be delivered no later than March 31, 2007. All shares issued under this
provision shall be fully vested and owned by Employee without risk of
forfeiture, and subject to the same restrictions on transferability provided for
the Bonus Shares under subparagraph c above.

                (e)     STOCK OPTIONS. Employee shall be entitled to participate

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in the Employer's Executive Incentive Stock Option program for calendar year
2004 and during her employment thereafter. Employee acknowledges that any grant
she may receive will be subject to her attainment of goals required under the
program, will be subject to all terms and conditions of the program, and that
for 2004, she will be eligible for a maximum grant of options to purchase 3,750
SBB Shares, subject to proration to reflect her actual time employed by the
Employer in 2004.

        4.      OTHER BENEFITS; FRINGE BENEFITS. Employee shall be entitled to
receive hospital, health, medical, long-term disability and life insurance of a
type currently provided to and enjoyed by other senior officers of Employer, and
shall be entitled to participate in any other employee benefit or retirement
plans, including but not limited to the Employer's 401(k) plan and/or the
Employee Stock Ownership Plan ("ESOP") offered by Employer to its employees
generally or to its senior management. Until such time as Employee becomes
eligible to participate in Employer's hospital, health, medical and prescription
benefit plans, Employer will reimburse Employee for Employee's actual out of
pocket costs for maintaining Employee's eligibility for her current benefits
under COBRA. In addition, Employee shall be entitled to four (4) weeks of paid
vacation each calendar year; provided, however, that for calendar year 2004,
Employee's vacation shall be prorated to reflect the percentage of the year for
which she was employed with the Employer.

        5.      TERM. The term of this Agreement shall be three (3) years,
commencing on the date hereof and continuing until the third anniversary of the
date hereof; provided, however, that the term of this Agreement shall
automatically renew for one (1) additional year on the third anniversary hereof
unless, at least three (3) months prior to such anniversary date, either
Employer or Employee shall have provided the other with written notice of their
intention not to extend the term of this Agreement; further provided, however,
that in the event the term of this Agreement is so extended, it shall also
automatically renew for one (1) additional year on the fourth anniversary hereof
unless, at least three (3) months prior to such anniversary date, either
Employer or Employee shall have provided the other with written notice of their
intention not to further extend the term of this Agreement.

        6.      TERMINATION. Employee may be terminated at any time, without
prejudice to Employee's right to compensation or benefits as provided herein.
Employee's rights upon a termination shall be as follows:

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                (a)     CAUSE. As used in this Agreement, the term "Cause" shall
mean the Employee's personal dishonesty or willful misconduct involving moral
turpitude or casting a negative light on the reputation of Employer , breach of
fiduciary duty involving personal profit, directly or indirectly to the Employee
or any person or entity affiliated, in any manner, with the Employee,
intentional failure to perform stated duties, willful violation of any law, rule
or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order, or a material breach of any provision of this Agreement.

                (b)     TERMINATION WITH CAUSE. Employer shall have the right to
terminate the Employee for "cause", upon written notice to her of such
determination, specifying the alleged "cause". In the event of such termination,
the Employee shall not be entitled to any further benefits under this Agreement,
other than the payment to her of accrued and unpaid compensation or any other
benefits required under law .

                (c)     TERMINATION WITHOUT CAUSE. Upon a termination of
Employee's employment hereunder without "cause", Employee shall be entitled to
receive her then current base salary for the remaining term of this Agreement,
but in no event for less than six (6) months. Such payments may be made over the
remaining term of this Agreement in periodic payments in the same manner in
which the Employee's salary was paid through the time of such termination, or by
a lump sum payment of the discounted present value of all base salary payments
through the remaining term of this Agreement. The determination of the method of
payment shall be made mutually by Employer and the Employee; provided, however,
that in the event the parties cannot agree on the method of payment, Employer
shall be entitled to choose. In addition, Employer shall continue to provide the
Employee with hospital, health, medical, long-term disability and life
insurance, and any other like benefits in effect at the time of such termination
through the end of the term of this Agreement, but in no event less than six (6)
months. The Employee shall have no duty to mitigate damages in connection with
her termination by Employer without "cause". However, if the Employee obtains
new employment and such new employment provides for hospital, health, medical,
long-term disability and life insurance, and other benefits, in a manner
substantially similar to the benefits payable by Employer hereunder, Employer
may permanently terminate the duplicative benefits it is obligated to provide
hereunder.

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                (d)     Suspension and Special Regulatory Rules.

                        (i)     If the Employee is suspended and/or temporarily
prohibited from participating in the conduct of the affairs of the Employer by a
notice served under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit
Insurance Act ("FDI Act"), Employer shall have the right to suspend all or a
portion of its obligations under this Agreement as of the date of service of
notice, unless stayed by appropriate proceedings.

                        (ii)    If the Employee is removed and/or permanently
prohibited from participating in the conduct of the affairs of the Employer by
an order issued under Section 8(e) or Section 8(g)(1) of the FDI Act, all
obligations of Employer under this Agreement shall terminate as of the effective
date of the order and the Employee shall not be entitled to received the
payments provided for under Paragraph (c) above.

                        (iii)   If the Employer is in default, as defined in
Section 3(x)(1) of the FDI Act, all obligations of Employer under this Agreement
shall terminate as of the date of default.

        7.      RESIGNATION FOR CAUSE. During the term of this Agreement, the
Employee shall be entitled to resign from her employment with Employer, and
receive the payments provided for below, in the event that the Employee is not
in material breach of this Agreement and Employer (i) reassigns the Employee to
a position of lesser rank or status than the Position, or (ii) reduces the
Employee's compensation or other benefits below the amounts provided for under
Sections 3 hereof. Upon the occurrence of any of these events, the Employee
shall have thirty days to provide Employer notice of her intention to terminate
this Agreement. In the event the Employee elects to so terminate this Agreement,
such termination shall be treated as a termination without "cause" by Employer
under Section 6(c) hereof, and the Employee shall be entitled to receive all
payments and other benefits called for under such Section 6(c).

        8.      CHANGE IN CONTROL.

                (a)     Upon the occurrence of a Change in Control (as herein
defined) followed at any time during the term of this Agreement by the
involuntary termination of the Employee's employment other than for "cause", as
defined in Section 6(a) hereof, or, as provided below the voluntary termination
of the Employee within eighteen (18) months of such Change in Control,

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Employee shall become entitled to receive the payments provided for under
paragraph (c) below. Upon the occurrence of a Change in Control, the Employee
shall have the right to elect to voluntarily terminate her employment within
eighteen (18) months of such Change in Control following any demotion, loss of
title, office or significant authority, reduction in her annual compensation or
benefits, or relocation of her principal place of employment by more than thirty
(30) miles from its location immediately prior to the Change in Control.

                (b)     A "Change in Control" shall mean:

                        (i)     a reorganization, merger, consolidation or sale
                                of all or substantially all of the assets of
                                Sussex Bancorp (the "Company"), or a similar
                                transaction, in which the shareholders of the
                                Company prior to such transaction hold less than
                                a majority of the voting power of the resulting
                                entity;

                        (ii)    individuals who constitute the Incumbent Board
                                (as herein defined) of the Company cease for any
                                reason to constitute a majority thereof;

                        (iii)   an event of a nature that would be required to
                                be reported in response to Item I of the current
                                report on Form 8-K, as in effect on the date
                                hereof, pursuant to Section 13 or 15(d) of the
                                Securities Exchange Act of 1934 (the "Exchange
                                Act") if Employer were a reporting company
                                subject to the Exchange Act; or

                        (iv)    Without limitation, a change in control shall be
                                deemed to have occurred at such time as any
                                "person" (as the term is used in Section 13(d)
                                and 14(d) of the Exchange Act) other than the
                                Company or the Employer or the trustees or any
                                administration of any employee stock ownership
                                plan and trust, or any other employee benefit
                                plans, established by the Company or the
                                Employer from time-to-time in is or becomes a
                                "beneficial owner" (as defined in Rule 13-d
                                under the Exchange Act) directly or indirectly,
                                of securities of the Company representing 25% or
                                more of the Company's outstanding securities
                                ordinarily having the right to vote at the
                                election of directors (the "Trigger Amount");
                                provided, however, that in the event any such
                                person acquires the Trigger Amount in a
                                transaction (i) which has been approved in
                                advance by the Incumbent Board and (ii) which
                                does not result in such person controlling a
                                majority of the voting power of the full Board
                                of Directors of the Company, then any such
                                transaction shall not be deemed a Change in
                                Control under this subsection (iv); or

                        (v)     A tender offer is made for 25% or more of the
                                voting securities of

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                                the Company and the shareholder owning
                                beneficially or of record 25% or more of the
                                outstanding securities of the Company have
                                tendered or offered to sell their shares
                                pursuant to such tender and such tendered shares
                                have been accepted by the tender offeror.

        For these purposes, "Incumbent Board" means the Board of Directors of
the Company on the date hereof, provided that any person becoming a director
subsequent to the date hereof whose election was approved by a voting of at
least three-quarters of the directors comprising the Incumbent Board, or whose
nomination for election by members or stockholders was approved by the same
nominating committee serving under an Incumbent Board, shall be considered as
though he were a member of the Incumbent Board.

                (c)     In the event the conditions of Section (a) above are
satisfied, Employee shall be entitled to receive a lump sum payment equal to two
(2) times Employee's then current Base Salary; provided, however, that in no
event shall any payments provided for hereunder constitute an "excess parachute
payment" under Section 280G of the Internal Revenue Code of 1986, as amended or
any successor thereto, and in order to avoid such a result the benefits provided
for hereunder will be reduced, if necessary, to an amount which is One Dollar
($1.00) less than an amount equal to three (3) times Employee's "base amount" as
determined in accordance with such Section 280G. In addition to the foregoing,
Employee shall be entitled to receive from Employer, or its successor, hospital,
health, medical, long term disability and life insurance on the terms and at the
cost to Employee as Employee was receiving such benefits upon the date of her
termination. Employer's obligation to continue such insurance benefits will be
for a period of two (2) years.

        9.      COVENANT NOT TO COMPETE. Employee agrees that , subject to
performance by Employer or its successor in interest of its obligations under
this Agreement, during the term of her employment hereunder and for a period of
one (1) year after the termination of her employment, she will not within Sussex
County, New Jersey in any way, directly or indirectly, manage, operate, control,
accept employment or a consulting position with or otherwise advise or assist or
be connected with or own or have any other interest in or right with respect to
(other than through ownership of not more than five percent (5%) of the
outstanding shares of a corporation whose stock is listed on a national
securities exchange or on the National Association of Securities Dealers
Automated Quotation System) any enterprise which competes

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with the Company in the business of banking ; provided, however, that this
covenant not to compete shall not apply in the event Employee's employment
hereunder is terminated at the end of the term of this Agreement due to
Employer's decision not to extend or renew the terms of Employee's employment
with Employer. In the event that this covenant not to compete shall be found by
a court of competent jurisdiction to be invalid or unenforceable as against
public policy, such court shall exercise discretion in reforming such covenant
to the end that Employee shall be subject to a covenant not to compete that is
reasonable under the circumstances and enforceable by the Company. Employee
agrees to be bound by any such modified covenant not to compete.

        10.     MISCELLANEOUS.

                (a)     GOVERNING LAW. In the absence of controlling Federal
law, this Agreement shall be governed by and interpreted under the substantive
law of the State of New Jersey. All litigation in connection with this Agreement
shall be brought in the United States District Court for the District of New
Jersey or the Superior Court of the state of New Jersey sitting in Sussex
County. The parties hereto consent to , and waive any objection to jurisdiction
by, either of such courts.

                (b)     SEVERABILITY. If any provision of this Agreement shall
be held to be invalid, void, or unenforceable, the remaining provisions hereof
shall in no way be affected or impaired, and such remaining provisions shall
remain in full force and effect.

                (c)     ENTIRE AGREEMENT; AMENDMENT. This Agreement sets for the
entire understanding of the parties with regarding to the subject matter
contained herein and supersedes any and all prior agreements, arrangements or
understandings relating to the subject matter hereof and may only be amended by
written agreement signed by both parties hereto or their duly authorized
representatives.

                (d)     SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and become the legal obligation of the successors and assigns of Employer.

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                      [this space left intentionally blank;
                signature for Employment Agreement on next page]

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

                                         SUSSEX BANK

                                         By: /s/ Donald L. Kovach
                                            ------------------------------------
                                            Name:  Donald L. Kovach
                                            Title: Chief Executive Officer

                                         EMPLOYEE:

                                         /s/ Tammy Case
                                         ---------------------------------------
                                         Name:  Tammy Case

        Sussex Bancorp guarantees the payments described in paragraphs 6(c), 7 &
8(c) of this Agreement and executes this Agreement solely for that purpose.

                                         SUSSEX BANCORP

                                         By: /s/ Donald L. Kovach
                                            ------------------------------------
                                            Name:  Donald L. Kovach
                                            Title: President and Chief Executive
                                                   Officer

                                       10Retention Bonus Agreement for Keith L. Downey

 RETENTION BONUS AGREEMENT 
  
 AGREEMENT made as of this 26th day of May 2004 by and between Summit Properties Inc., a Maryland corporation with its
principal place of business in Charlotte, North Carolina (the “Company”), and Keith L. Downey of Charlotte, NC (the “Executive”). 
  
 1. Purpose. The Company considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel. The Board
of Directors of the Company (the “Board”) recognizes, however, that, as is the case with many publicly held corporations, the possibility of a Change in Control (as defined in Section 2 hereof) exists and that such possibility, and the
uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders. Therefore, the Board has determined that appropriate steps should
be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising
from the possibility of a Change in Control. Nothing in this Agreement shall be construed as creating an express or implied contract of employment or any right to be retained in the employ of the Company. The Company and the Executive have entered
into an Employment Agreement dated February 24, 1994 (as such agreement may be in effect from time to time, and including any amended or replacement employment agreement, the “Employment Agreement”) and an Executive Severance Agreement
dated December 17, 2001 (as such agreement may be in effect from time to time, and including any amended or replacement severance agreement, the “Severance Agreement”) that provide for compensation to the Executive under certain
circumstances in the event that the Executive’s employment is terminated. This Agreement is intended to supplement the Employment Agreement and the Severance Agreement. 
  
 2. Change in Control. 
  
 (a) A “Change in Control” shall be deemed to have occurred in any one of the following events: 
  
 (i) any “person,” as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Act”) (other than the Company, Summit Properties Partnership, L.P. (together with any other subsidiaries of the Company, the “Subsidiaries”), or any trustee, fiduciary
or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its Subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the
Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 40% or more of either (A) the combined voting power of the
Company’s then outstanding securities having the right to vote in an election of the Board (“Voting Securities”) or (B) the then outstanding shares of stock of the Company (“Stock”), in either such case other than as a
result of an acquisition of securities directly from the Company; or 
  
 (ii) persons who, as of the date hereof, constitute the Board (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender 

 offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Board,
provided that any person becoming a director of the Company subsequent to the date hereof whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors shall, for purposes of this Agreement, be
considered an Incumbent Director; or 
  
 (iii)
the consummation of a consolidation or merger of the Company or any subsidiary where the shareholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as
such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate 50% of the voting shares of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent
corporation, if any), or the consummation of any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the
Company; or 
  
 (iv) the stockholders of the
Company shall approve any plan or proposal for the liquidation or dissolution of the Company. 
  
 Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of securities by the Company which,
by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of shares of Voting Securities beneficially owned by any person to 40% or more of the combined voting power of all then outstanding Voting
Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction
or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns 40% or more of the combined voting power of all then outstanding Voting Securities, then a “Change in Control” shall be
deemed to have occurred for purposes of the foregoing clause (i). 
  
 (b) For purposes of determining whether a Change in Control has occurred, all outstanding options, warrants and other convertible securities that are then exchangeable or convertible into Voting Securities of the Company, including, without
limitation, all partnership units of any Subsidiary that are convertible into, or under certain circumstances redeemable for, Voting Securities of the Company at the option of the holder or the Company, shall be deemed to have been converted into
the applicable number of shares of Voting Securities of the Company immediately prior to making such determination. 
  
 3. Terminating Event. A “Terminating Event” shall mean any of the following events: 
  
 (a) termination by the Company of the employment of the Executive with the Company for any reason other than: 
  
 (i) the death of the Executive (which shall be referred to
as a “Death Termination”), the total disability of the Executive (total disability meaning the inability of the Executive to perform his normal required services under this Agreement for a 
  

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 period of six consecutive months during the term of this agreement by reason of the Executive’s
mental or physical disability, as determined by the board in good faith in its sole discretion) (which shall be referred to as a “Disability Termination”) or the retirement of the Executive; 
  
 (ii) if the Executive is convicted of, pleads guilty to, or
confesses to any felony or any act of fraud, misappropriation or embezzlement which has an immediate and materially adverse effect on the Company and its subsidiaries on a consolidated basis, as determined by the Board in good faith in its sole
discretion; 
  
 (iii) if the Executive engaged in
a fraudulent act to the material damage or material prejudice of the Company and its subsidiaries on a consolidated basis or in conduct or activities materially damaging to the property, business or reputation of the Company and its subsidiaries on
a consolidated basis, all as determined by the Board in good faith in its sole discretion; 
  
 (iv) in the event of any material act or omission by the Executive involving malfeasance or negligence in the performance of the
Executive’s duties to the Company to the material detriment of the Company and its subsidiaries on a consolidated basis, as determined by the Board in good faith in its sole discretion, which has not been corrected by the Executive within 30
days after written notice from the Company of any such act or omission; 
  
 (v) failure by the Executive to comply in any material respect with the terms of the Employment Agreement or any written policies or directives of the Board as determined by the Board in good faith in its sole
discretion, which has not been corrected by the Executive within 30 days after written notice from the Company of such failure; or 
  
 (vi) a material breach by the Executive of the non-competition provisions of the Employment Agreement, as determined by the Board in good
faith in its sole discretion. 
  
 Each of the events described in the foregoing
clauses (ii) through (vi) shall be referred to individually and collectively as a “For Cause Termination.” Notwithstanding any other provision of this Section 3(a), a Terminating Event shall not be deemed to have occurred pursuant to this
Section 3(a) solely as a result of the Executive being an employee of any direct or indirect successor to the business or assets of the Company, rather that continuing as an employee of the Company following a Change in Control. For purposes of
clause (i) of this Section 3(a), “retirement” shall mean termination of the Executive’s employment in accordance with the Company’s normal retirement policy, generally applicable to its salaried employees, as in effect
immediately prior to the change in Control, or in accordance with any retirement arrangement established with respect to the Executive with the Executive’s express written consent; or 
  
 (b) termination by the Executive of the Executive’s employment with the
Company for Good Reason. “Good Reason” shall mean the occurrence of any of the following, provided that in either case the Board has not corrected such material reduction described below within 30 days after written notice by the Executive
of such material reduction: (i) there is a material 
  

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 reduction in the Executive’s duties, rights or responsibilities under the Employment Agreement without his consent,
or (ii) there is a material reduction in the aggregate value of the Executive’s compensation and benefits package from the Company under the Employment Agreement without his consent, other than a reduction in the Executive’s base salary
that is permitted under the Employment Agreement and other than a reduction in compensation and/or benefits affecting a broad group of employees of the Company as determined by the Board in good faith in its sole discretion; (iii) there is a
relocation of the Company’s offices at which the Executive is principally employed as of the date of this Agreement to a location more than 50 miles from such offices, or the requirement by the Company for the Executive to be based anywhere
other than the Company’s offices at such location, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations immediately prior to the date hereof.

  
 4. Retention Bonus Payment. Provided the Executive is employed by the
Company on the Retention Payment Date (as defined below), the Company shall pay to the Executive an amount equal to Nine Hundred Fifty Thousand Dollars $950,000. Said amount shall be paid in one lump sum payment no later than 31 days following the
Retention Payment Date. The Company shall also pay to the Executive all reasonable legal and arbitration fees and expenses incurred by the Executive in obtaining or enforcing any right or benefit provided by this Agreement, except in cases involving
frivolous or bad faith litigation initiated by the Executive. “Retention Payment Date” shall mean the date that is 11 months following a Change in Control. Notwithstanding anything herein to the contrary, for purposes of this Plan, the
Executive shall be deemed to be employed on the Retention Payment Date and therefore entitled to receive the bonus payment provided by this Section 4 in the event the Executive experiences a Terminating Event after a Change in Control or within six
months before a Change in Control. 
  
 5. Additional Benefits. 

 
 (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Severance
Payments”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended, (“the Code”), or any interest or penalties are incurred by the Executive with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) such that the
net amount retained by the Executive, after deduction of any Excise Tax on the Severance Payments, any Federal, state and local income tax, employment tax and Excise Tax upon the payment provided by this subsection, and any interest and/or penalties
assessed with respect to such Excise Tax, shall be equal to the Severance Payments. 
  
 (b) Subject to the provisions of Section 5(c), all determinations required to be made under this Section 5, including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by
the Company’s independent certified public accounting firm (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if
applicable, or at such earlier time as is reasonably requested by the Company or the Executive. For purposes of 
  

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 determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation applicable to individuals for the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of
the Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. The initial Gross-Up Payment, if any, as determined pursuant to
this Section 5(b), shall be paid to the Executive within five days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, the Company shall furnish the Executive
with an opinion of counsel that failure to report the Excise Tax on the Executive’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be
binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Company should have been made (an “Underpayment”). In the event that the Company exhausts its remedies pursuant to Section 5(c) and the Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred, consistent with the calculations required to be made hereunder, and the Company shall make an additional payment to or for the benefit of the Executive such that the
net amount retained by the Executive, after deduction of any Federal, state and local income tax, employment tax and Excise Tax upon the payment provided by this subsection, and any interest and/or penalties assessed with respect to such
Underpayment or in connection with the proceedings described in Section 5(c). 
  
 (c) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-up Payment. Such notification shall be
given as soon as practicable but no later than 10 business days after the Executive knows of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies
the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 
  
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
  
 (ii) take such action in connection with contesting such
claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company, 
  
 (iii) cooperate with the Company in good faith in order
effectively to contest such claim, and 
  
 (iv)
permit the Company to participate in any proceedings relating to such claim; provided, however that the Company shall bear and pay directly all costs and 
  

 5 

 expenses (including additional interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such contest and payment of costs and expenses. Without limitation on
the foregoing provisions of this Section 5(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences
with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to pay such claim and
sue for a refund, the Company shall advance the amount of such payment to the Executive on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or
penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension by the Company of the statute of limitations relating to payment of
taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due shall be limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with
respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issues raised by the Internal Revenue Service or any other taxing authority. 
  
 (d) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 5(c), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section 5(c)) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 5(c), a determination is made that the
Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
  
 6. Term. This Agreement shall take effect on the date first set forth above and shall terminate upon the earlier of (a) immediately
prior to a For Cause Termination by the Company of the employment of the Executive, (b) the resignation of the Executive other than for Good Reason, (c) immediately prior to the resignation of the Executive if any event that would constitute grounds
for a For Cause Termination of the Executive’s employment has occurred and is continuing, or (d) the payment of all amounts owed hereunder to the Executive following the first Change in Control after the date hereof. 
  
 7. Withholding. All payments made by the Company under this Agreement shall be net of
any tax or other amounts required to be withheld by the Company under applicable law. 
  

 6 

 8. Notice and Date of Termination; Disputes; Etc. 
  
 (a) Notice of Termination. During the term of this Agreement, any purported termination of the Executive’s
employment (other than by reason of a Death Termination) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with this Section 8. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and the Date of Termination. 
  
 (b) Date of Termination. “Date of Termination”, with respect to any purported termination of the Executive’s employment during the
term of this Agreement, shall mean (i) if there is a Disability Termination, 30 days after Notice of Termination is given (provided that the Executive shall not have returned to the full-time performance of the Executive’s duties during such
30-day period) and (ii) if the Executive’s employment is terminated for any other reason, the date specified in the Notice of Termination. In the case of a termination by the Company other than a For Cause Termination (which may be effective
immediately), the Date of Termination shall not be less than 30 days after the Notice of Termination is given. In the case of a termination by the Executive, the Date of Termination shall not be less than 15 days from the date such Notice of
Termination is given. Notwithstanding Section 3(a) of this Agreement, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not
result in a Terminating Event for purposes of Section 3(a) of this Agreement. 
  
 (c) No Mitigation. The Company agrees that, if the Executive’s employment by the Company is terminated during the term of this Agreement, the Executive is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 4 hereof. Further, the amount of any payment provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the
result of employment by another employer. 
  
 (d) Settlement
and Arbitration of Disputes. Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be settled exclusively by arbitration in accordance with the laws of the State of North Carolina by three arbitrators,
one of whom shall be appointed by the Company, one by the Executive and the third by the first two arbitrators. If the first two arbitrators cannot agree on the appointment of a third arbitrator, then the third arbitrator shall be appointed by the
American Arbitration Association in the City of Charlotte, North Carolina. Such arbitration shall be conducted in the City of Charlotte, North Carolina in accordance with the rules of the American Arbitration Association for commercial arbitrations,
except with respect to the selection of arbitrators which shall be as provided in this Section 8(d). Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 
  
 9. Assignment. Neither the Company nor the Executive may make any assignment of this
Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other party, and without such consent any attempted transfer shall be null and void and of no effect. This Agreement shall inure to the
benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted 
  

 7 

 assigns. In the event of the Executive’s death after the Retention Payment Date but prior to the completion by the
Company of all payments due him under Section 4 of this Agreement, the Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make
such designation). 
  
 10. Enforceability. If any portion or provision of
this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is
so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
  
 11. Waiver. No waiver of any provision hereof shall be effective unless made in
writing and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of
such term or obligation or be deemed a waiver of any subsequent breach. 
  
 12.
Notices. Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid, to the Executive at the last
address the Executive has filed in writing with the Company, or to the Company at its main office, attention of the Board. 
  
 13. Effect on Other Plans. Nothing in this Agreement shall be construed to limit the rights of the Executive under the Company’s benefit plans, programs or
policies except as otherwise provided in Section 5 hereof. 
  
 14.
Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company. 
  
 15. Governing Law. This Agreement shall be construed under and be governed in all respects by the laws of the State of North
Carolina. 
  
 16. Obligations of Successors. In addition to any obligations
imposed by law upon any successor to the Company, the Company will use its reasonable best efforts to require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or
assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 
  
 17. Confidential Information. The Executive shall never use, publish or disclose in a
manner adverse to the Company’s interests, any proprietary or confidential information relating to (a) the business, operations or properties of the Company or any Subsidiary or other affiliate of the Company, or (b) any materials, processes,
business practices, technology, know-how, research, programs or other information used in the business of the Company or any Subsidiary or other affiliate of the Company, provided, however, that no breach or alleged breach of this Section 17 shall
entitle the Company to fail to comply fully and in a timely manner with any other provision hereof. Nothing in this Agreement shall preclude the Company from seeking money damages, or 
  

 8 

 equitable relief by injunction or otherwise without the necessity of proving actual damage to the Company, for any breach
by the Executive hereunder. 
  
 IN WITNESS WHEREOF, this Agreement
has been executed as a sealed instrument by the Company by its duly authorized officer, and by the Executive, as of the date first above written. 
  

			
	 COMPANY:
 SUMMIT PROPERTIES INC.

		
	By:	 	 /s/ Steven R. LeBlanc

	 Name:
	 	 Steven R. LeBlanc

	 Title:
	 	 Chief Executive Officer and President

  

	
	 EXECUTIVE:

	
	 /s/ Keith L. Downey

	 

  

 9

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