Patrick G. & Valerie V. O'Malley - Page 7




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                    7.  The Agreement shall (a) run with and bind upon                
               the parcel of land upon which the Subdivision is being                 
               created and which is the subject of this Agreement; and                
               (b) inure to the benefit of the parties hereto, their                  
               heirs, personal representatives, legal representatives,                
               successors and assigns as appropriate.                                 
                    8.  This Agreement shall be governed by Maryland                  
               law and any action brought by or between the parties                   
               shall vest jurisdiction and venue exclusively in the                   
               courts located in Anne Arundel County.                                 
                    9.  This contains the complete and final Agreement                
               between the parties and no agreement or understanding                  
               shall be binding upon any of them unless set forth in                  
               writing and executed by both parties.  [Reproduced                     
               literally.]                                                            
               All of the lots in petitioners’ subdivision plat, including            
          lot 12, were unimproved except for lots 3, 4, and 5.                        
               Lot 5 contained a two-story house that was built in 1996.              
          During September 1997 to December 1999, petitioners rented that             
          lot to Mr. O’Malley’s brother Kevin R. O’Malley (Kevin O’Malley)            
          and Kevin O’Malley’s spouse Kelly M. O’Malley (Kelly O’Malley),             
          who lived in the house on lot 5 while they were renting that lot            
          from petitioners.                                                           
               From December 1999 through June 2000, petitioners trans-               
          ferred by deed to the grantees indicated the following lots,                
          inter alia, in petitioners’ subdivision plat:5                              


               5As discussed below, petitioners transferred (1) lot 5 to              
          Kevin O’Malley and Kelly O’Malley and (2) lot 12 to Mr. O’Mal-              
          ley’s brother Edward P. O’Malley (Edward O’Malley) and Edward               
          O’Malley’s spouse Faith M. O’Malley (Faith O’Malley).  Petition-            
          ers did not transfer lot 4 or lot 11 in petitioners’ subdivision            
          plat.  Petitioners’ subdivision plat showed that Mr. O’Malley was           
          to retain lot 4 and that lot 11 was a “bonus lot”.                          





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