CONSTRUCTION LOAN AGREEMENT

Construction Loan Agreement

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This Construction Loan Agreement involves

CORPORATE OFFICE PROPERTIES TRUST | CITIZENS BANK OF PENNSYLVANIA | COMMERCE BANK, NA | KEYBANK NATIONAL ASSOCIATION | MANUFACTURERS AND TRADERS TRUST COMPANY | PNC BANK, NATIONAL ASSOCIATION | REGIONS BANK | Section 125, KEYBANC CAPITAL MARKETS, INC | SUNTRUST BANK | WACHOVIA BANK, NATIONAL ASSOCIATION

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Title: CONSTRUCTION LOAN AGREEMENT
Governing Law: New York Date: 8/8/2008
Industry: REOPER Law Firm: Alston Bird Sector: SERVIC

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Exhibit 10.1

CONSTRUCTION LOAN AGREEMENT

Dated as of May 2, 2008

by and among

CORPORATE OFFICE PROPERTIES, L.P.,

as Borrower

CORPORATE OFFICE PROPERTIES TRUST,

as Parent,

KEYBANC CAPITAL MARKETS

as Arranger,

KEYBANK NATIONAL ASSOCIATION,

as Administrative Agent,

BANK OF AMERICA, N.A.,

as Syndication Agent,

MANUFACTURERS AND TRADERS TRUST COMPANY,

as Documentation Agent,

and

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

AND THEIR ASSIGNEES PURSUANT TO SECTION 12.5.,

as Lenders

TABLE OF CONTENTS

Article I. Definitions		1

Section 1.1.	Definitions	1
Section 1.2.	General; References to Times	17

Article II. Credit Facility		18

Section 2.1.	Loans	18
Section 2.2.	Rates and Payment of Interest on Loans	21
Section 2.3.	Number of Interest Periods	22
Section 2.4.	Repayment of Loans	22
Section 2.5.	Prepayments	22
Section 2.6.	Continuation	23
Section 2.7.	Conversion	23
Section 2.8.	Notes	24
Section 2.9.	Extension of Termination Date	24
Section 2.10.	Amount Limitations	25
Section 2.11.	Increase of Commitments	25

Article III. Payments, Fees and Other General Provisions		26

Section 3.1.	Payments	26
Section 3.2.	Pro Rata Treatment	26
Section 3.3.	Sharing of Payments, Etc.	26
Section 3.4.	Several Obligations	27
Section 3.5.	Minimum Amounts	27
Section 3.6.	Fees	27
Section 3.7.	Computations	28
Section 3.8.	Usury	28
Section 3.9.	Agreement Regarding Interest and Charges	28
Section 3.10.	Statements of Account	29
Section 3.11.	Defaulting Lenders	29
Section 3.12.	Taxes	30

Article IV. Yield Protection, Etc.		32

Section 4.1.	Additional Costs; Capital Adequacy	32
Section 4.2.	Suspension of LIBOR Loans	33
Section 4.3.	Illegality	33
Section 4.4.	Compensation	33
Section 4.5.	Treatment of Affected Loans	34
Section 4.6.	Change of Lending Office	35
Section 4.7.	Assumptions Concerning Funding of LIBOR Loans	35

Article V. Borrowing Base Properties		35

Section 5.1.	Eligibility of Properties	35
Section 5.2.	Release of Properties	39
Section 5.3.	Frequency of Calculations of Borrowing Base	39

Article VI. Conditions Precedent		40

Section 6.1.	Conditions Precedent to Effectiveness of Agreement	40
Section 6.2.	Additional Conditions Precedent To All Loans	42
Section 6.3.	Initial Construction Requirements to Making of Loans Under a Borrowing Base Property Sub-Facility	43
Section 6.4.	Deliveries for Subsequent Loans for Borrowing Base Properties	43
Section 6.5.	Deliveries for Final Disbursements	44
Section 6.6.	Conditions as Covenants	44

Article VII. Representations and Warranties		44

Section 7.1.	Representations and Warranties	44
Section 7.2.	Survival of Representations and Warranties, Etc.	49

Article VIII. Affirmative Covenants		49

Section 8.1.	Use of Proceeds	49
Section 8.2.	Further Assurances	50
Section 8.3.	Certain Covenants of Existing Credit Agreement	50
Section 8.4.	Foreign Assets Control	50
Section 8.5.	Construction Related Covenants	50

Article IX. Information		54

Section 9.1.	Compliance Certificate	54
Section 9.2.	Other Information	54

Article X. Default		55

Section 10.1.	Events of Default	55
Section 10.2.	Remedies Upon Event of Default	57
Section 10.3.	Remedies Upon Default	58
Section 10.4.	Allocation of Proceeds	58
Section 10.5.	Performance by Agent	59
Section 10.6.	Rights Cumulative	59

Article XI. The Agent		59

Section 11.1.	Authorization and Action	59
Section 11.2.	Agent’s Reliance, Etc.	60
Section 11.3.	Notice of Defaults	61
Section 11.4.	KeyBank as Lender	61
Section 11.5.	Approvals of Lenders	61
Section 11.6.	Lender Credit Decision, Etc.	62
Section 11.7.	Collateral Matters	62
Section 11.8.	Indemnification of Agent	63
Section 11.9.	Successor Agent	64
Section 11.10.	Titled Agent	65

Article XII. Miscellaneous		65

Section 12.1.	Notices	65

Section 12.2.	Expenses		66
Section 12.3.	Setoff		67
Section 12.4.	Litigation; Jurisdiction; Other Matters; Waivers		67
Section 12.5.	Successors and Assigns		68
Section 12.6.	Amendments		72
Section 12.7.	Nonliability of Agent and Lenders		73
Section 12.8.	Confidentiality		73
Section 12.9.	Indemnification		74
Section 12.10.	Termination; Survival		76
Section 12.11.	Severability of Provisions		77
Section 12.12.	GOVERNING LAW		77
Section 12.13.	Counterparts		77
Section 12.14.	Obligations With Respect to Loan Parties		77
Section 12.15.	Limitation of Liability		77
Section 12.16.	Entire Agreement		77
Section 12.17.	Construction		78
Section 12.18.	Patriot Act		78
Section 12.19.	Existing Credit Agreement Provisions		78

SCHEDULE I		Commitments
SCHEDULE 5.1.		Borrowing Base Properties
SCHEDULE 7.1.(b)		Ownership of Property Owners
SCHEDULE 8.5(f)		Insurance Requirements

EXHIBIT A		Form of Assignment and Acceptance Agreement
EXHIBIT B		Form of Borrowing Base Certificate
EXHIBIT C		Form of Draw Request
EXHIBIT D		Form of Guaranty
EXHIBIT E		Form of Notice of Continuation
EXHIBIT F		Form of Notice of Conversion
EXHIBIT G		Form of Pledge Agreement
EXHIBIT H		Form of Note