**EXHIBIT 3.1**

 

PRENTISS PROPERTIES TRUST

 

AMENDED AND RESTATED DECLARATION OF TRUST 

 

Dated as of October 16, 1996 

 

Prentiss Properties Trust, a Maryland real estate investment trust (the “Trust”) under Title 8 of the Corporations and Associations Article ofthe Annotated Code of Maryland (“Title 8”), desires to amend and restate its Declaration of Trust as currently in effect and as hereinafter amended. 

 

The following provisions are all the provisions of the Declaration of Trust currently in effect and as hereinafter amended: 

 

ARTICLE I 

 

FORMATION 

 

The Trust is a real estate investment trust (a “REIT”) within the meaning of Title 8. The Trust shall not be deemed to be a general partnership,limited partnership, joint venture, joint stock company or a corporation (but nothing herein shall preclude the Trust from being treated for tax purposes as an association under the Code). 

 

ARTICLE II 

 

NAME 

 

The name of the Trust is: 

 

Prentiss Properties Trust 

 

Under circumstances in which the Board of Trustees of the Trust (the “Board of Trustees” or “Board”) determines that the use of thename of the Trust is not practicable, the Trust may use any other designation or name for the Trust. 

 

ARTICLE III 

 

PURPOSES AND POWERS 

 

Section 1. Purposes. Thepurposes for which the Trust is formed are to invest in and to acquire, hold, manage, administer, control and dispose of real property and interests in real property, including, without limitation or obligation, engaging in business as a REIT underthe Internal Revenue Code of 1986, as amended (the “Code”). 

 

Section 2. Powers. The Trust shall have all of the powers granted to REITs by Title 8 and all other powers set forth in the Declaration of Trust which are not inconsistent with law and are appropriate to promote and attain thepurposes set forth in the Declaration of Trust. 

 

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ARTICLE IV 

 

RESIDENT AGENT 

 

The name of the resident agent of the Trust in the State of Maryland is James J. Hanks, Jr., c/o Ballard Spahr Andrews & Ingersoll, whose post officeaddress is 300 East Lombard Street, Baltimore, Maryland 21202. The resident agent is a citizen of and resides in the State of Maryland. The Trust may have such offices or places of business within or outside the State of Maryland as the Board ofTrustees of the Trust may from time to time determine. 

 

ARTICLEV 

 

BOARD OF TRUSTEES 

 

Section 1. Powers. 

 

(A) Subject to any express limitations contained in the Declaration of Trustor in the Bylaws, (i) the business and affairs of the Trust shall be managed under the direction of the Board of Trustees and (ii) the Board shall have full, exclusive and absolute power, control and authority over any and all property of the Trust.The Board may take any action as it, in its sole judgment and discretion, deems necessary or appropriate to conduct the business and affairs of the Trust. The Declaration of Trust shall be construed with a presumption in favor of the grant of powerand authority to the Board. Any construction of the Declaration of Trust or determination made in good faith by the Board concerning its powers and authority hereunder shall be conclusive. The enumeration and definition of particular powers of theTrustees included in the Declaration of Trust or in the Bylaws shall in no way be construed or deemed by inference or otherwise in any manner to exclude or limit the powers conferred upon the Board of Trustees under the general laws of the State ofMaryland or any other applicable laws. 

 

(B) Except as otherwiseprovided in the Bylaws, the Board, without any action by the shareholders of the Trust, shall have and may exercise, on behalf of the Trust, without limitation, the power to adopt, amend and repeal Bylaws; to elect officers in the manner prescribedin the Bylaws; to solicit proxies from holders of shares of beneficial interest of the Trust; and to do any other acts and deliver any other documents necessary or appropriate to the foregoing powers. 

 

(C) It shall be the duty of the Board of Trustees to ensure that the Trustsatisfies the requirements for qualification as a REIT under the Code, including, but not limited to, the ownership of outstanding shares of its beneficial interest, the nature of its assets, the sources of its income, and the amount and timing ofits distributions to its shareholders. The Board of Trustees shall take no action to disqualify the Trust as a REIT or to otherwise revoke the Trust’s election to be taxed as a REIT without the affirmative vote of a majority of the number ofshares of Common Shares entitled to vote on such matter at a meeting of the Shareholders. 

 

Section 2. Classification and Number. (A) The Trustees of the Trust (hereinafter the “Trustees”) (other than any Trustee elected solely by holders of one or more classes or series of Preferred Shares)shall be classified, with respect to the terms for which they severally hold office, into three classes, as nearly equal in number as possible, one class (“Class I”) to hold office initially for a term expiring at the first annual meeting

 

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of shareholders, another class (“Class II”) to hold office initially for a term expiring at the secondsucceeding annual meeting of shareholders and another class (“Class III”) to hold office initially for a term expiring at the third succeeding annual meeting of shareholders, with the Trustees of each class to hold office until theirsuccessors are duly elected and qualified. At each annual meeting of shareholders, the successors to the class of Trustees whose term expires at such meeting shall be elected to hold office for a term expiring at the annual meeting of shareholdersheld in the third year following the year of their election. Shareholder votes to elect Trustees shall be conducted in the manner provided in the Bylaws. 

 

(B) The number of Trustees initially shall be seven, which number may be increased or decreased pursuant to the Bylaws of the Trust. The name, address andclass of the Trustees who shall serve as the initial Trustees and until their successors are duly elected and qualified is: 

 

**Name**
  
**Address**
  
**Class**

Michael V. Prentiss
  1717 Main Street  Class III   Suite 5000      Dallas, TX 75201   
Thomas F. August
  1717 Main Street  Class II   Suite 5000      Dallas, TX 75201   
Thomas J. Hynes
  160 Federal Street  Class III   Boston, MA 02110   Barry J. C. Parker     Class III
Dr. Leonard M. Riggs, Jr.
  1717 Main Street  Class II   Suite 5200      Dallas, TX 75201   
Ronald G. Steinhart
  P. O. Box 655415  Class II   Dallas, TX 75265-5415   
Lawrence A. Wilson
  1700 Pacific, Suite 3800  Class I   Dallas, TX 75201   
 

The Trustees may increase the numberof Trustees and fill any vacancy, whether resulting from an increase in the number of Trustees or otherwise, on the Board of Trustees prior to the first annual meeting of shareholders in the manner provided in the Bylaws. Independent Trustees shallnominate replacements for vacancies among the Independent Trustees’ positions. In the event that, after the closing of the Initial Public Offering, a majority of the Board of Trustees are not Independent Trustees by reason of the resignation orremoval of one or more Independent Trustees or otherwise, the remaining Independent Trustees (or, if there are no Independent Trustees, the remaining members of the Board of Trustees) shall promptly elect that number of Independent Trusteesnecessary to cause the Board of Trustees to include a majority of Independent Trustees. It shall not be necessary to list in the Declaration of Trust the names and addresses of any Trustees hereinafter elected. 

 

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Section 3. Resignation, Removal or Death. Any Trustee may resign by written notice to the Board,effective upon execution and delivery to the Trust of such written notice or upon any future date specified in the notice. Subject to the rights of holders of one or more classes or series of Preferred Shares to elect one or more Trustees, a Trusteemay be removed at any time, with or without cause, at a meeting of the shareholders, by the affirmative vote of the holders of not less than two-thirds of the Shares then outstanding and entitled to vote generally in the election of Trustees.

 

Section 4. Independent Trustees. Notwithstandinganything herein to the contrary, at all times (except during a period not to exceed sixty (60) days following the death, resignation, incapacity or removal from office of a Trustee prior to expiration of the Trustee’s term of office), amajority of the Board of Trustees shall be comprised of persons who are not affiliated with any member of the Prentiss family or officers or employees of the Trust or “Affiliates” of (i) any subsidiary of the Trust or (ii) any partnershipwhich is an Affiliate of the Trust (each such person serving on the Board of Trustees being an “Independent Trustee”). 

 

Section 5. Definition of Affiliate. For purposes of Section 4 above, “Affiliate” of a person shall mean (i) any person that, directly orindirectly, controls or is controlled by or is under common control with such person, (ii) any other person that owns, beneficially, directly or indirectly, five percent (5%) or more of the outstanding capital shares, shares or equity interests ofsuch person, or (iii) any officer, director, employee, partner or trustee of such person or of any person controlling, controlled by or under common control with such person (excluding trustees and persons serving in similar capacities who are nototherwise an Affiliate of such person). The term “person” means and includes individuals, corporation, general and limited partnerships, stock companies or associations, joint ventures, associations, companies, trusts, banks, trustcompanies, land trusts, business trusts, or other entities and governments and agencies and political subdivisions thereof. For the purpose of this definition, “control” (including the correlative meanings of the terms “controlledby” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, through theownership of voting securities, partnership interests or other equity interests. 

 

Section 6. Business Activities by Trustees. Unless otherwise agreed between the Trust and the Trustees, each individual Trustee, including each Independent Trustee, may engage in other business activities ofthe type conducted by the Trust and is not required to present to the Trust any investment opportunities presented to them even though the investment opportunities may be within the scope of the Trust’s investment policies. 

 

ARTICLE VI 

 

SHARES OF BENEFICIAL INTEREST 

 

Section 1. Authorized Shares. The beneficial interest of the Trust shall be divided into shares of beneficial interest (the “Shares”).The Trust has authority to issue one hundred million (100,000,000) common shares of beneficial interest, $.01 par value per share (“Common Shares”), and twenty million (20,000,000) preferred shares of beneficial interest, $.01 par valueper share (“Preferred Shares”). The Board of Trustees, without any 

 

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action by the shareholders of the Trust, may amend the Declaration of Trust from time to time to increase or decrease theaggregate number of Shares or the number of Shares of any class that the Trust has authority to issue. 

 

Section 2. Common Shares. Subject to the provisions of Article VII, each Common Share shall entitle the holder thereof to one vote on each matterupon which holders of Common Shares are entitled to vote. The Board of Trustees may reclassify any unissued Common Shares from time to time in one or more classes or series of Shares. 

 

Section 3. Preferred Shares. The Board of Trustees may classify any unissued Preferred Shares and reclassify anypreviously classified but unissued Preferred Shares of any series from time to time, in one or more series of Shares. 

 

Section 4. Classified or Reclassified Shares. Prior to issuance of classified or reclassified Shares of any class or series, the Board of Trusteesby resolution shall (a) designate that class or series to distinguish it from all other classes and series of Shares; (b) specify the number of Shares to be included in the class or series; (c) set, subject to the provisions of Article VII andsubject to the express terms of any class or series of Shares outstanding at the time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms andconditions of redemption for each series; and (d) cause the Trust to file articles supplementary with the State Department of Assessments and Taxation of Maryland (“SDAT”). Any of the terms of any class or series of Shares set pursuant toclause (c) of this Section 4 may be made dependent upon facts or events ascertainable outside the Declaration of Trust (including determinations by the Board of Trustees or other facts or events within the control of the Trust) and may vary amongholders thereof, provided that the manner in which such facts, events or variations shall operate upon the terms of such class or series of Shares is clearly and expressly set forth in articles supplementary filed with the SDAT. 

 

Section 5. Authorization by Board of Share Issuance. The Board ofTrustees may authorize the issuance from time to time of Shares of any class or series, whether now or hereafter authorized, or securities or rights convertible into Shares of any class or series, whether now or hereafter authorized, for suchconsideration (whether in cash, property, past or future services, obligation for future payment or otherwise) as the Board of Trustees may deem advisable (or without consideration in the case of a Share split or Share dividend), subject to suchrestrictions or limitations, if any, as may be set forth in the Declaration of Trust or the Bylaws of the Trust. Notwithstanding any other provision in the Declaration of Trust, no determination shall be made by the Board of Trustees nor shall anytransaction be entered into by the Trust which would cause any Shares or other beneficial interest in the Trust not to constitute “transferable shares” or “transferable certificates of beneficial interest” under Section 856(a)(2)of the Code or which would cause any distribution to constitute a preferential dividend as described in Section 562(c) of the Code. 

 

Section 6. Dividends and Distributions. The holders of all Common Shares will participate equally in dividends payable to holders of Common Shareswhen and as authorized and declared by the Board of Trustees and in net assets available for distribution to holders of Common Shares upon liquidation or dissolution. The Board of Trustees may from time to time authorize and declare to shareholderssuch dividends or distributions, in 

 

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cash or other assets of the Trust or in securities of the Trust or from any other source as the Board of Trustees in itsdiscretion shall determine. The Board of Trustees shall endeavor to declare and pay such dividends and distributions as shall be necessary for the Trust to qualify as a REIT under the Code; however, shareholders shall have no right to any dividendor distribution unless and until authorized and declared by the Board. The exercise of the powers and rights of the Board of Trustees pursuant to this Section shall be subject to the provisions of any class or series of Shares at the timeoutstanding. 

 

Section 7. General Nature of Shares. AllShares shall be personal property entitling the shareholders only to those rights provided in the Declaration of Trust. The shareholders shall have no interest in the property of the Trust and shall have no right to compel any partition, division,dividend or distribution of the Trust or of the property of the Trust. The death of a shareholder shall not terminate the Trust. The Trust is entitled to treat as shareholders only those persons in whose names Shares are registered as holders ofShares on the beneficial interest ledger of the Trust. 

 

Section8. Fractional Shares. The Trust may, without the consent or approval of any shareholder, issue fractional Shares, eliminate a fraction of a Share by rounding up or down to a full Share, arrange for the disposition of a fraction of a Share bythe person entitled to it, or pay cash for the fair value of a fraction of a Share. 

 

Section 9. Declaration of Trust and Bylaws. All shareholders are subject to the provisions of the Declaration of Trust and the Bylaws of the Trust. 

 

ARTICLE VII 

 

RESTRICTIONS ON TRANSFER AND SHARES-IN-TRUST 

 

Section 1. Restrictions on Transfer. 

 

(A) Definitions. The following terms shall have the following meanings: 

 

(1) “Beneficial Ownership” shall mean ownership ofEquity Shares (or options to acquire Equity Shares) by a Person who would be treated as an owner of such Equity Shares either directly or indirectly through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code.The terms “Beneficial Owner,” “Beneficially Owns,” and “Beneficially Owned” shall have correlative meanings. 

 

(2) “Beneficiary” shall mean, with respect to any Share Trust, one or more organizations described in each of Section170(b)(1)(A) (other than clauses (vii) or (viii) thereof) and Section 170(c)(2) of the Code that are named by the Share Trust as the beneficiary or beneficiaries of such Share Trust, in accordance with the provisions of Section 2(A) hereof.

 

(3) “Board of Trustees” shall meanthe Board of Trustees of the Trust. 

 

(4)“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 

 

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(5) “Constructive Ownership” shall mean ownership of Equity Shares (or optionsto acquire Equity Shares) by a Person who would be treated as an owner of such Equity Shares either directly or indirectly through the application of Section 318 of the Code, as modified by Section 856(d)(5) of the Code. The terms “ConstructiveOwner,” “Constructively Owns,” and “Constructively Owned” shall have correlative meanings. 

 

(6) “Equity Shares” shall mean shares that are either Preferred Shares or Common Shares. The term “Equity Shares”shall include all Preferred Shares or Common Shares that are held as Shares-in-Trust in accordance with the provisions of Section 2 hereof. 

 

(7) “Exchange Rights” shall mean the rights granted under the Prentiss Properties Partnership Agreement to the limited partnersto exchange, under certain circumstances, their limited partnership interests for cash (or, at the option of the Trust, Common Shares). 

 

(8) “Excluded Holder” shall mean Michael V. Prentiss. 

 

(9) “Excluded Holder Limit” shall mean, (i) the lesser of (A) 15% of the number of outstandingCommon Shares or (B) the Adjusted Excluded Holder Percentage (as defined in Section 1(I) of this Article VII). The Excluded Holder Limit shall be adjusted on any day that the Adjusted Excluded Holder Percentage changes as provided in Section 1(I) ofthis Article VII. The Excluded Holder shall be subject to the Ownership Limit with respect to any Preferred Shares acquired by the Excluded Holder. 

 

(10) “Initial Public Offering” means the sale of Common Shares pursuant to the Trust’s first effective registrationstatement for such Common Shares filed under the Securities Act of 1933, as amended. 

 

(11) “Market Price” on any date shall mean the average of the Closing Price for the five consecutive Trading Days ending on suchdate. The “Closing Price” on any date shall mean the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principalconsolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Equity Shares are not listed or admitted to trading on the New York Stock Exchange, as reported in theprincipal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Equity Shares are listed or admitted to trading or, if the Equity Shares are not listed or admitted totrading on any national securities exchange, the last quoted price, or if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc. AutomatedQuotation System or, if such system is no longer in use, the principal other automated quotations system that may then be in use or, if the Equity Shares are not quoted by any such organization, the average of the closing bid and asked prices asfurnished by a professional market maker making a market in the Equity Shares selected by the Board of Trustees. “Trading Day” shall mean a day on which the principal national securities exchange on which the Equity Shares are listed oradmitted to trading is open for the transaction of business or, if the Equity Shares are not listed or admitted to trading on any national securities exchange, shall mean any day other than a Saturday, a Sunday or a day on which banking institutionsin the State of New York are authorized or obligated by law or executive order to close. 

 

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(12) “Non-Transfer Event” shall mean an event (other than a purported Transfer)that would cause (i) any Person (other than the Excluded Holder with respect to Common Shares) to Beneficially Own or Constructively Own Equity Shares in excess of the Ownership Limit or (ii) the Excluded Holder to Beneficially Own or ConstructivelyOwn Common Shares in excess of the Excluded Holder Limit, including, but not limited to, the granting of any option or entering into any agreement for the sale, transfer or other disposition of Equity Shares or the sale, transfer, assignment orother disposition of any securities or rights convertible into or exchangeable for Equity Shares. 

 

(13) “Ownership Limit” initially shall mean 8.5% of the number of outstanding Common Shares and 9.8% of the outstanding numberof any series of Preferred Shares. After any adjustment provided for in Section 1(J) of this Article VII, the Ownership Limit with respect to Common Shares shall be increased (but not above 9.8%) as set forth in such Section. 

 

(14) “Partnership Unit” shall mean a fractional,undivided share of the partnership interests of Prentiss Properties Acquisition Partners, L.P., a Delaware limited partnership. 

 

(15) “Permitted Transferee” shall mean any Person designated as a Permitted Transferee in accordance with the provisions ofSection 2(E) hereof. 

 

(16) “Person”shall mean an individual, corporation, partnership, estate, trust, a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaningof Section 509(a) of the Code, joint stock company or other entity and also includes a “group” as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 

 

(17) “Prentiss Properties Partnership Agreement”shall mean the agreement of limited partnership of Prentiss Properties Acquisition Partners, L.P., a Delaware limited partnership, as amended and restated. 

 

(18) “Prohibited Owner” shall mean, with respect to any purported Transfer or Non-Transfer Event, any Person who, but for theprovisions of Section 1(C) hereof, would own record title to Equity Shares. 

 

(19) “REIT” shall mean a real estate investment trust under Section 856 of the Code. 

 

(20) “Restriction Termination Date” shall mean the first day after the date of the Initial Public Offering on which the Board ofTrustees and the shareholders of the Trust determine, pursuant to Article V, Section 1(C), that it is no longer in the best interests of the Trust to attempt to, or continue to, qualify as a REIT. 

 

(21) “Shares-in-Trust” shall mean any EquityShares designated Shares-in-Trust pursuant to Section 1(C) hereof. 

 

(22) “Share Trust” shall mean any separate trust created pursuant to Section 1(C) hereof and administered in accordance with the terms of Section 2 hereof, for the exclusive benefit of any Beneficiary.

 

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(23) “Share Trustee” shall mean any person or entity unaffiliated with both theTrust and any Prohibited Owner, such Share Trustee to be designated by the Trust to act as trustee of any Share Trust, or any successor trustee thereof. 

 

(24) “Transfer” (as a noun) shall mean any sale, transfer, gift, assignment, devise or other disposition of Equity Shares,whether voluntary or involuntary, whether of record, constructively or beneficially and whether by operation of law or otherwise. “Transfer” (as a verb) shall have the correlative meaning. 

 

(B) Restriction on Transfers. 

 

(1) Except as provided in Section 1(G) hereof, from the dateof the Initial Public Offering and prior to the Restriction Termination Date, (i) no Person (other than the Excluded Holder with respect to Common Shares) shall Beneficially Own or Constructively Own outstanding Equity Shares in excess of theOwnership Limit and (ii) the Excluded Holder shall not Beneficially Own or Constructively Own outstanding Common Shares in excess of the Excluded Holder Limit. 

 

(2) Except as provided in Section 1(G) hereof and subject to Section 1(H) hereof, from the date of the Initial Public Offering andprior to the Restriction Termination Date, any Transfer that, if effective, would result in (i) any Person (other than the Excluded Holder with respect to Common Shares) Beneficially Owning or Constructively Owning Equity Shares in excess of theOwnership Limit or (ii) the Excluded Holder Beneficially Owning or Constructively Owning Common Shares in excess of the Excluded Holder Limit, shall be void abinitio as to the Transfer of that number of Equity Shares which would beotherwise Beneficially Owned or Constructively Owned by such Person in excess of the Ownership Limit or the Excluded Holder Limit, as applicable, and the intended transferee shall acquire no rights in such excess Equity Shares. 

 

(3) From the date of the Initial Public Offering and priorto the Restriction Termination Date, any Transfer that, if effective, would result in the Equity Shares being beneficially owned by fewer than 100 Persons (determined without reference to any rules of attribution) shall be void abinitio as to the Transfer of that number of shares which would be otherwise beneficially owned (determined without reference to any rules of attribution) by the transferee, and the intended transferee shall acquire no rights in such excessEquity Shares; provided, however, that this Section 1(B)(3) shall not apply to the Transfer of Equity Shares from the Trust to the underwriters of the Initial Public Offering. 

 

(4) From the date of the Initial Public Offering and prior to the Restriction Termination Date, any Transferof Equity Shares that, if effective, would result in the Trust being “closely held” within the meaning of Section 856(h) of the Code shall be void abinitio as to the Transfer of that number of Equity Shares which would causethe Trust to be “closely held” within the meaning of Section 856(h) of the Code, and the intended transferee shall acquire no rights in such excess Equity Shares. 

 

(5) Except as provided in Section 1(G) hereof and subject to Section 1(H) hereof, from the date of theInitial Public Offering and prior to the Restriction Termination Date, any Transfer of Equity Shares that, if effective, would cause the Trust to Constructively Own 10% or more of the ownership interests in a tenant of the Trust’s realproperty, within 

 

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the meaning of Section 856(d)(2)(B) of the Code, shall be void abinitio as to the Transferof that number of Equity Shares which would cause the Trust to Constructively Own 10% or more of the ownership interests in a tenant of the Trust’s real property, within the meaning of Section 856(d)(2)(B) of the Code, and the intendedtransferee shall acquire no rights in such excess Equity Shares. 

 

(C) Transfer to Share Trust. 

 

(1) If, notwithstanding the other provisions contained in this Section 1, at any time after the date of the Initial Public Offering and prior to the Restriction Termination Date, there is a purported Transfer orNon-Transfer Event such that (i) any Person (other than the Excluded Holder with respect to Common Shares) would either Beneficially Own or Constructively Own Equity Shares in excess of the Ownership Limit or (ii) the Excluded Holder would eitherBeneficially Own or Constructively Own Common Shares in excess of the Excluded Holder Limit, then, (x) except as otherwise provided in Section 1(G) hereof, the purported transferee shall acquire no right or interest (or, in the case of aNon-Transfer Event, the person holding record title to the Equity Shares Beneficially Owned or Constructively Owned by such Beneficial Owner or Constructive Owner, shall cease to own any right or interest) in such number of Equity Shares which wouldcause such Beneficial Owner or Constructive Owner to Beneficially Own or Constructively Own Equity Shares in excess of the Ownership Limit or the Excluded Holder Limit, as applicable, (y) such number of Equity Shares in excess of the Ownership Limitor the Excluded Holder Limit, as applicable (rounded up to the nearest whole share), shall be designated Shares-in-Trust and, in accordance with the provisions of Section 2 hereof, transferred automatically and by operation of law to the Share Trustto be held in accordance with that Section 2 and (z) the Prohibited Owner shall submit such number of Equity Shares to the Trust for registration into the name of the Share Trust. Such transfer to a Share Trust and the designation of shares asShares-in-Trust shall be effective as of the close of business on the business day prior to the date of the Transfer or Non-Transfer Event, as the case may be. 

 

(2) If, notwithstanding the other provisions contained in this Section 1, at any time after the date of the Initial Public Offering andprior to the Restriction Termination Date, there is a purported Transfer or Non-Transfer Event that, if effective, would (i) result in the Equity Shares being beneficially owned by fewer than 100 Persons (determined without reference to any rules ofattribution), (ii) result in the Trust being “closely held” within the meaning of Section 856(h) of the Code, or (iii) cause the Trust to Constructively Own 10% or more of the ownership interests in a tenant of the Trust’s realproperty, within the meaning of Section 856(d)(2)(B) of the Code, then (x) the purported transferee shall not acquire any right or interest (or, in the case of a Non-Transfer Event, the person holding record title of the Equity Shares with respectto which such Non-Transfer Event occurred, shall cease to own any right or interest) in such number of Equity Shares, the ownership of which by such purported transferee or record holder would (A) result in the Equity Shares being beneficially ownedby fewer than 100 Persons (determined without reference to any rules of attribution), (B) result in the Trust being “closely held” within the meaning of Section 856(h) of the Code, or (C) cause the Trust to Constructively Own 10% or moreof the ownership interests in a tenant of the Trust’s real property, within the meaning of Section 856(d)(2)(B) of the Code, (y) such number of Equity Shares (rounded up to the nearest whole share) shall be designated Shares-in-Trust and, inaccordance with the provisions of Section 

 

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2 hereof, transferred automatically and by operation of law to the Share Trust to be held in accordance with that Section 2, and (z) the Prohibited Ownershall submit such number of Equity Shares to the Trust for registration into the name of the Share Trust. Such transfer to a Share Trust and the designation of shares as Shares-in-Trust shall be effective as of the close of business on the businessday prior to the date of the Transfer or Non-Transfer Event, as the case may be. 

 

(D) Remedies For Breach. If the Trust, or its designees, shall at any time determine in good faith that a Transfer has taken placein violation of Section 1(B) hereof or that a Person intends to acquire or has attempted to acquire Beneficial Ownership or Constructive Ownership of any Equity Shares in violation of Section 1(B) hereof, the Trust shall take such action as it deemsadvisable to refuse to give effect to or to prevent such Transfer or acquisition, including, but not limited to, refusing to give effect to such Transfer on the books of the Trust or instituting proceedings to enjoin such Transfer or acquisition.

 

(E) Notice of Restricted Transfer. AnyPerson who acquires or attempts to acquire Equity Shares in violation of Section 1(B) hereof, or any Person who owned Equity Shares that were transferred to the Share Trust pursuant to the provisions of Section 1(C) hereof, shall immediately givewritten notice to the Trust of such event and shall provide to the Trust such other information as the Trust may request in order to determine the effect, if any, of such Transfer or Non-Transfer Event, as the case may be, on the Trust’s statusas a REIT. 

 

(F) Owners Required To ProvideInformation. From the date of the Initial Public Offering and prior to the Restriction Termination Date: 

 

(1) Every Beneficial Owner or Constructive Owner of more than 5%, or such lower percentages as required pursuant to regulations under theCode, of the outstanding Equity Shares of the Trust shall, within 30 days after January 1 of each year, provide to the Trust a written statement or affidavit stating the name and address of such Beneficial Owner or Constructive Owner, the number ofEquity Shares Beneficially Owned or Constructively Owned, and a description of how such shares are held. Each such Beneficial Owner or Constructive Owner shall provide to the Trust such additional information as the Trust may request in order todetermine the effect, if any, of such Beneficial Ownership or Constructive Ownership on the Trust’s status as a REIT and to ensure compliance with the Ownership Limit and the Excluded Holder Limit. 

 

(2) Each Person who is a Beneficial Owner or ConstructiveOwner of Equity Shares and each Person (including the shareholder of record) who is holding Equity Shares for a Beneficial Owner or Constructive Owner shall provide to the Trust a written statement or affidavit stating such information as the Trustmay request in order to determine the Trust’s status as a REIT and to ensure compliance with the Ownership Limit and the Excluded Holder Limit. 

 

(G) Exception to Ownership Limit. The Ownership Limit shall not apply to the acquisition of Equity Shares by an underwriter thatparticipates in a public offering of such shares for a period of 90 days following the purchase by such underwriter of such shares provided that the restrictions contained in Section 1(B) hereof will not be violated following the distribution bysuch underwriter of such shares. In addition, the Board of Trustees, upon receipt of a ruling from the Internal Revenue Service or an 

 

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opinion of counsel in each case to the effect that the restrictions contained in Section 1(B)(3) and/orSection 1(B)(4) hereof will not be violated and that REIT status will not otherwise be lost, may exempt a Person from the Ownership Limit if such Person is not an individual for purposes of Section 542(a)(2) of the Code, provided that (i) the Boardof Trustees obtains such representations and undertakings from such Person as are reasonably necessary to ascertain that no individual’s Beneficial Ownership or Constructive Ownership of Equity Shares will violate the Ownership Limit and (ii)such Person agrees that any violation or attempted violation will result in a transfer to the Share Trust of Equity Shares pursuant to Section 1(C) hereof. 

 

(H) New York Stock Exchange Transactions. Notwithstanding any provision contained herein to the contrary, nothing in this Amendedand Restated Declaration of Trust shall preclude the settlement of any transaction entered into through the facilities of the New York Stock Exchange. 

 

(I) Redetermination of Excluded Holder Limit. The Excluded Holder Limit shall be redetermined whenever the Adjusted Excluded HolderPercentage (as defined below) is changed by the Board of Trustees. The “Adjusted Excluded Holder Percentage” shall equal the percentage of the number of outstanding Common Shares Beneficially or Constructively Owned by the Excluded Holderassuming the following: (i) all of the Partnership Units Beneficially or Constructively Owned by the Excluded Holder are exchanged for Common Shares; (ii) no other Partnership Units are exchanged for Common Shares; (iii) all of the options toacquire Common Shares that are Beneficially or Constructively Owned by the Excluded Holder are exercised; and (iv) no other options to acquire Common Shares are exercised. The Adjusted Excluded Holder Percentage may (but is not required to) beredetermined by the Board of Trustees whenever there is a change in either the number of Common Shares outstanding or the number of Common Shares Beneficially or Constructively Owned by the Excluded Holder, in each case based on the assumptions setout in the immediately preceding sentence. In redetermining the Adjusted Excluded Holder Percentage, the Board of Trustees may take into account any options with respect to Common Shares that are expected to be issued to the Excluded Holder (or toany other Person if the Excluded Holder will be considered to Beneficially or Constructively Own the Common Shares that are the subject of the options) in the future. 

 

(J) Redetermination of Ownership Limit. Whenever the Excluded Holder Limit is redetermined pursuantto Section 1(I) of this Article VII, the Ownership Limit shall be redetermined to equal the percentage obtained by dividing (i) 49% minus the new Excluded Holder Limit by (ii) four. 

 

(K) Limitations on Redetermination of Excluded Holder Limit and Ownership Limit. 

 

(1) Neither the Ownership Limit nor the Excluded HolderLimit may be increased (nor may any additional ownership limitation be created with respect to any shareholder of the Trust) if, after giving effect to such increase (or creation), the Trust would be (or potentially could be if five or moreindividuals Beneficially Owned a percentage of outstanding Common Shares equal to the applicable limits) “closely held” within the meaning of Section 856(h) of the Code. 

 

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(2) In no event shall the Adjusted Excluded Holder Percentage be less than 9.8%.

 

(3) In no event shall the Ownership Limit beless than 8.5% or greater than 9.8%. 

 

(4)Prior to any redetermination of the Adjusted Excluded Holder Limit, the Board may require such opinions of counsel, affidavits, undertakings, or agreements as it may deem necessary or advisable in order to determine or assure the Trust’s statusas a REIT. 

 

Section 2. Shares-in-Trust. 

 

(A) Share Trust. Any Equity Shares transferred to aShare Trust and designated Shares-in-Trust pursuant to Section 1(C) hereof shall be held for the exclusive benefit of the Beneficiary. The Trust shall name a beneficiary of each Share Trust within five days after discovery of the existence thereof.Any transfer to a Share Trust, and subsequent designation of Equity Shares as Shares-in-Trust, pursuant to Section 1(C) hereof shall be effective as of the close of business on the business day prior to the date of the Transfer or Non-Transfer Eventthat results in the transfer to the Share Trust. Shares-in-Trust shall remain issued and outstanding Equity Shares of the Trust and shall be entitled to the same rights and privileges on identical terms and conditions as are all other issued andoutstanding Equity Shares of the same class and series. When transferred to a Permitted Transferee in accordance with the provisions of Section 2(E) hereof, such Shares-in-Trust shall cease to be designated as Shares-in-Trust. 

 

(B) Dividend Rights. The Share Trust, as recordholder of Shares-in-Trust, shall be entitled to receive all dividends and distributions as may be declared by the Board of Trustees on such Equity Shares and shall hold such dividends or distributions in trust for the benefit of the Beneficiary. TheProhibited Owner with respect to Shares-in-Trust shall repay to the Share Trust the amount of any dividends or distributions received by it that (i) are attributable to any Equity Shares designated Shares-in-Trust and (ii) the record date for whichwas on or after the date that such shares became Shares-in-Trust. The Trust shall take all measures that it determines reasonably necessary to recover the amount of any such dividend or distribution paid to a Prohibited Owner, including, ifnecessary, withholding any portion of future dividends or distributions payable on Equity Shares Beneficially Owned or Constructively Owned by the Person who, but for the provisions of Section 1(C) hereof, would Constructively Own or BeneficiallyOwn the Shares-in-Trust; and, as soon as reasonably practicable following the Trust’s receipt or withholding thereof, shall pay over to the Share Trust for the benefit of the Beneficiary the dividends so received or withheld, as the case maybe. 

 

(C) Rights Upon Liquidation. Inthe event of any voluntary or involuntary liquidation, dissolution or winding up of, or any distribution of the assets of, the Trust, each holder of Shares-in-Trust shall be entitled to receive, ratably with each other holder of Equity Shares of thesame class or series, that portion of the assets of the Trust which is available for distribution to the holders of such class and series of Equity Shares. The Share Trust shall distribute to the Prohibited Owner the amounts received upon suchliquidation, dissolution, or winding up, or distribution; provided, however, that the Prohibited Owner shall not be entitled to receive amounts pursuant to this Section 2(C) in excess of, (i) in the case of a purported Transfer in which theProhibited Owner gave value for Equity Shares 

 

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and which Transfer resulted in the transfer of the shares to the Share Trust, the price per share, ifany, such Prohibited Owner paid for the Equity Shares and, (ii) in the case of a Non-Transfer Event or Transfer in which the Prohibited Owner did not give value for such shares (e.g., if the shares were received through a gift or devise) and whichNon-Transfer Event or Transfer, as the case may be, resulted in the transfer of shares to the Share Trust, the price per share equal to the Market Price on the date of such Non-Transfer Event or Transfer. Any remaining amount in such Share Trustshall be distributed to the Beneficiary. 

 

(D)Voting Rights. The Share Trustee shall be entitled to vote all Shares-in-Trust. Any vote by a Prohibited Owner as a holder of Equity Shares prior to the discovery by the Trust that the Equity Shares are Shares-in-Trust shall, subject toapplicable law, be rescinded and shall be void abinitio with respect to such Shares-in-Trust and the Prohibited Owner shall be deemed to have given, as of the close of business on the business day prior to the date of the purportedTransfer or Non-Transfer Event that results in the transfer to the Share Trust of Equity Shares under Section 1(C) hereof, an irrevocable proxy to the Share Trustee to vote the Shares-in-Trust in the manner in which the Share Trustee, in its soleand absolute discretion, desires. 

 

(E)Designation of Permitted Transferee. The Share Trustee shall have the exclusive and absolute right to designate a Permitted Transferee of any and all Shares-in-Trust. In an orderly fashion so as not to materially adversely affect the MarketPrice of the Shares-in-Trust, the Share Trustee shall designate any Person as Permitted Transferee, provided, however, that (i) the Permitted Transferee so designated purchases for valuable consideration (whether in a public or privatesale), at a price as set forth in Section 2(G) hereof, the Shares-in-Trust and (ii) the Permitted Transferee so designated may acquire such Shares-in-Trust without such acquisition resulting in a transfer to a Share Trust and the redesignation ofsuch Equity Shares so acquired as Shares-in-Trust under Section 1(C) hereof. Upon the designation by the Share Trustee of a Permitted Transferee in accordance with the provisions of this Section 2(E), the Share Trustee shall (i) cause to betransferred to the Permitted Transferee that number of Shares-in-Trust acquired by the Permitted Transferee, (ii) cause to be recorded on the books of the Trust that the Permitted Transferee is the holder of record of such number of Equity Shares,(iii) cause the Shares-in-Trust to be canceled and (iv) distribute to the Beneficiary any and all amounts held with respect to the Shares-in-Trust after making the payment to the Prohibited Owner pursuant to Section 2(F) hereof. 

 

(F) Compensation to Record Holder of Equity Shares thatBecome Shares-in-Trust. Any Prohibited Owner shall be entitled (following discovery of the Shares-in-Trust and subsequent designation of the Permitted Transferee in accordance with Section 2(E) hereof or following the acceptance of the offer topurchase such shares in accordance with Section 2(G) hereof) to receive from the Share Trustee following the sale or other disposition of such Shares-in-Trust the lesser of (i) in the case of (a) a purported Transfer in which the Prohibited Ownergave value for Equity Shares and which Transfer resulted in the transfer of the shares to the Share Trust, the price per share, if any, such Prohibited Owner paid for the Equity Shares, or (b) a Non-Transfer Event or Transfer in which the ProhibitedOwner did not give value for such shares (e.g., if the shares were received through a gift or devise) and which Non-Transfer Event or Transfer, as the case may be, resulted in the transfer of shares to the Share Trust, the price per shareequal to the Market Price on the date of such Non-Transfer Event or Transfer 

 

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and (ii) the price per share received by the Share Trustee from the sale or other disposition of suchShares-in-Trust in accordance with Section 2(E) hereof. Any amounts received by the Share Trustee in respect of such Shares-in-Trust and in excess of such amounts to be paid the Prohibited Owner pursuant to this Section 2(F) shall be distributed tothe Beneficiary in accordance with the provisions of Section 2(E) hereof. Each Beneficiary and Prohibited Owner waive any and all claims that they may have against the Share Trustee and the Share Trust arising out of the disposition ofShares-in-Trust, except for claims arising out of the gross negligence or willful misconduct of, or any failure to make payments in accordance with this Section 2 by such Share Trustee or the Trust. 

 

(G) Purchase Right in Shares-in-Trust.Shares-in-Trust shall be deemed to have been offered for sale to the Trust, or its designee, at a price per share equal to the lesser of (i) the price per share in the transaction that created such Shares-in-Trust (or, in the case of devise, gift orNon-Transfer Event, the Market Price at the time of such devise, gift or Non-Transfer Event) and (ii) the Market Price on the date the Trust, or its designee, accepts such offer. The Trust shall have the right to accept such offer for a period ofninety days after the later of (i) the date of the Non-Transfer Event or purported Transfer which resulted in such Shares-in-Trust and (ii) the date the Trust determines in good faith that a Transfer or Non-Transfer Event resulting inShares-in-Trust has occurred, if the Trust does not receive a notice of such Transfer or Non-Transfer Event pursuant to Section 1(E) hereof. 

 

Section 3. Remedies Not Limited. Subject to Section 1(H) hereof, nothing contained in this Article VII shall limit the authority of the Trust totake such other action as it deems necessary or advisable to protect the Trust and the interests of its shareholders by preservation of the Trust’s status as a REIT and to ensure compliance with the Ownership Limit and the Excluded HolderLimit. 

 

Section 4. Ambiguity. In the case of anambiguity in the application of any of the provisions of Article VII, including any definition contained in Section 1(A) hereof, the Board of Trustees shall have the power to determine the application of the provisions of this Article VII withrespect to any situation based on the facts known to it. 

 

Section 5. Legend. Each certificate for Equity Shares shall bear the following legend: 

 

“The [Common or Preferred] Shares represented by this certificate are subject to restrictions on transfer for the purpose of the Trust’smaintenance of its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further restrictions and except as provided in the Declaration of Trust of the Trust, noPerson may (i) Beneficially or Constructively Own Common Shares in excess of 8.5% (or such other percentage as may be determined by the Board of Trustees) of the number of outstanding Common Shares, unless such Person is the Excluded Holder (inwhich case the Excluded Holder Limit shall be applicable); (ii) Beneficially or Constructively Own Preferred Shares of any series of Preferred Shares in excess of 9.8% of the number of outstanding Preferred Shares of such series, (iii) BeneficiallyOwn Equity Shares that would result in the Equity Shares being beneficially owned by fewer than 100 Persons (determined without reference to any rules of attribution), (iv) Beneficially Own Equity Shares that would result in the Trust being“closely held” under Section 856(h) of the Code, or (v) Constructively Own Equity 

 

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Shares that would cause the Trust to Constructively Own 10% or more of the ownership interests in a tenant of theTrust’s real property, within the meaning of Section 856(d)(2)(B) of the Code. Any Person who attempts to Beneficially or Constructively Own shares of Equity Shares in excess of the above limitations must immediately notify the Trust inwriting. If any restrictions above are violated, the Equity Shares represented hereby will be transferred automatically to a Share Trust and shall be designated Shares-in-Trust to a trustee of a trust for the benefit of one or more charitablebeneficiaries. In addition, upon the occurrence of certain events, attempted transfers in violation of the restrictions described above may be void abinitio. All capitalized terms in this legend have the meanings defined in theTrust’s Amended and Restated Declaration of Trust, as the same may be further amended from time to time, a copy of which, including the restrictions on transfer, will be sent without charge to each shareholder who so requests. Such requestsmust be made to the secretary of the trust at its principal office or to the transfer agent.” 

 

Section 6. Severability. If any provision of this Article VII or any application of any such provision is determined to be invalid by any federalor state court having jurisdiction over the issues, the validity of the remaining provisions shall not be affected and other applications of such provision shall be affected only to the extent necessary to comply with the determination of suchcourt. 

 

ARTICLE VIII 

 

SHAREHOLDERS 

 

Section 1. Meetings. There shall be an annual meeting of the shareholders, to be held on proper notice at such time(after the delivery of the annual report) and convenient location as shall be determined by or in the manner prescribed in the Bylaws, for the election of the Trustees, if required, and for the transaction of any other business within the powers ofthe Trust. Except as otherwise provided in this Declaration of Trust, special meetings of shareholders may be called in the manner provided in the Bylaws. If there are no Trustees, the officers of the Trust shall promptly call a special meeting ofthe shareholders entitled to vote for the election of successor Trustees. Any meeting may be adjourned and reconvened as the Trustees determine or as provided in the Bylaws. 

 

Section 2. Voting Rights. Subject to the provisions of any class or series of Shares then outstanding, theshareholders shall be entitled to vote only on the following matters: (a) termination of REIT status as provided in Article V, Section (1)(C), (b) election of Trustees as provided in Article V, Section 2(A) and the removal of Trustees as provided inArticle V, Section 3; (c) amendment of the Declaration of Trust as provided in Article X; (d) termination of the Trust as provided in Article XII, Section 2; (e) merger or consolidation of the Trust, or the sale or disposition of substantially allof the Trust Property, as provided in Article XI; and (f) such other matters with respect to which a vote of the shareholders is required by applicable law or the Board of Trustees has adopted a resolution declaring that a proposed action isadvisable and directing that the matter be submitted to the shareholders for approval or ratification. Except with respect to the foregoing matters, no action taken by the shareholders at any meeting shall in any way bind the Board of Trustees.

 

Section 3. Preemptive and Appraisal Rights. Except asmay be provided by the Board of Trustees in setting the terms of classified or 

 

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reclassified Shares pursuant to Article VI, Section 4, no holder of Shares shall, as such holder, (a) have any preemptiveor preferential right to purchase or subscribe for any additional Shares of the Trust or any other security of the Trust which it may issue or sell or (b), except as expressly required by Title 8, have any right to require the Trust to pay him thefair value of his Shares in an appraisal or similar proceeding. 

 

Section 4. Extraordinary Actions. Except as specifically provided in Article V, Sections 1(C), 2(A) and 3 and Article X, Sections 2 and 3, and Article XII, Section 2 of this Declaration of Trust, notwithstanding any provision of lawpermitting or requiring any action to be taken or authorized by the affirmative vote of the holders of a greater number of votes, any such action shall be effective and valid if taken or authorized by the affirmative vote of holders of Sharesentitled to cast a majority of all the votes entitled to be cast on the matter. 

 

Section 5. Board Approval. The submission of any action to the shareholders for their consideration shall first be approved by the Board of Trustees. 

 

Section 6. Action By Shareholders Without a Meeting. The Bylaws of theTrust may provide that any action required or permitted to be taken by the shareholders may be taken without a meeting by the written consent of the shareholders entitled to cast a sufficient number of votes to approve the matter as required bystatute, the Declaration of Trust or the Bylaws of the Trust, as the case may be. 

 

ARTICLE IX 

 

LIABILITYLIMITATION, INDEMNIFICATION 

AND TRANSACTIONS WITH THE TRUST 

 

Section 1. Limitation of Shareholder Liability. No shareholder shall be liable for any debt, claim, demand, judgmentor obligation of any kind of, against or with respect to the Trust by reason of his being a shareholder, nor shall any shareholder be subject to any personal liability whatsoever, in tort, contract or otherwise, to any person in connection with theproperty or the affairs of the Trust by reason of his being a shareholder. 

 

Section 2. Limitation of Trustee and Officer Liability. To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of trustees and officers of a REIT, no Trustee orofficer of the Trust shall be liable to the Trust or to any shareholder for money damages. Neither the amendment nor repeal of this Section, nor the adoption or amendment of any other provision of the Declaration of Trust or Bylaws of the Trustinconsistent with this section, shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption. In the absence of any Marylandstatute limiting the liability of trustees and officers of a Maryland REIT for money damages in a suit by or on behalf of the Trust or by any shareholder, no Trustee or officer of the Trust shall be liable to the Trust or to any shareholder formoney damages except to the extent that (a) the Trustee or officer actually received an improper benefit or profit in money, property, or services, for the amount of the benefit or profit in money, property, or services actually received; or (b) ajudgment or other final adjudication adverse to the Trustee or officer is 

 

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entered in a proceeding based on a finding in the proceeding that the Trustee’s or officer’s action or failureto act was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding. 

 

Section 3. Express Exculpatory Clauses in Instruments. Neither the Shareholders nor the Trustees, officers, employees or agents of the Trust shallbe liable under any written instrument creating an obligation of the Trust, and all Persons shall look solely to the Trust Property for the payment of any claim under or for the performance of that instrument. The omission of the foregoingexculpatory language from any instrument shall not affect the validity or enforceability of such instrument and shall not render any Shareholder, Trustee, officer, employee or agent liable thereunder to any third party, nor shall the Trustees or anyofficer, employee or agent of the Trust be liable to anyone for such omission. 

 

Section 4. Indemnification. The Trust shall have the power, to the maximum extent permitted by Maryland law in effect from time to time, to obligate itself to indemnify, and to pay or reimburse reasonableexpenses in advance of final disposition of a proceeding to, (a) any individual who is a present or former shareholder, Trustee or officer of the Trust or (b) any individual who, while a Trustee of the Trust and at the request of the Trust, servesor has served as a director, officer, partner, trustee, employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise from and against any claim or liability to which such person may becomesubject or which such person may incur by reason of his status as a present or former shareholder, Trustee or officer of the Trust. The Trust shall have the power, with the approval of its Board of Trustees, to provide such indemnification andadvancement of expenses to a person who served as a predecessor of the Trust in any of the capacities described in (a) or (b) above, and to any employee or agent of the Trust or a predecessor of the Trust. 

 

Section 5. Transactions Between the Trust and its Trustees, Officers,Employees and Agents. Subject to any express restrictions in the Declaration of Trust or adopted by the Trustees in the Bylaws or by resolution, the Trust may enter into any contract or transaction of any kind with any person, including anyTrustee, officer, employee or agent of the Trust or any person affiliated with a Trustee, officer, employee or agent of the Trust, whether or not any of them has a financial interest in such transaction. 

 

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ARTICLE X 

 

AMENDMENTS 

 

Section 1. General. The Trust reserves the right from time to time to make any amendment to the Declaration of Trust, now or hereafter authorizedby law, including any amendment altering the terms or contract rights, as expressly set forth in the Declaration of Trust, of any Shares. All rights and powers conferred by this Declaration of Trust on shareholders, Trustees and officers are grantedsubject to this reservation. An amendment to the Declaration of Trust (a) shall be signed and acknowledged by at least two-thirds of the Trustees, (b) shall be filed for record with SDAT as provided in Article XIII, Section 5 and (c) shall becomeeffective as of the later of the time the SDAT accepts the amendment for record or the time established in the amendment, not to exceed 30 days after the amendment is accepted for record. All references to the Declaration of Trust shall include allamendments thereto. 

 

Section 2. By Trustees. TheTrustees by a two-thirds vote may amend the Declaration of Trust from time to time, in the manner provided by Title 8, without any action by the shareholders, to qualify as a REIT under the Code or under Title 8. 

 

Section 3. By Shareholders. Other than amendments pursuant to Section2 of this Article X, any amendment to the Declaration of Trust shall be valid only if approved by the affirmative vote of at least a majority of all the votes entitled to be cast on the matter, except that any amendment to Article V, Article VII,Article X, Sections 2 and 3, and Article XII, Section 2 of this Declaration of Trust shall be valid only if approved by the affirmative vote of two-thirds of all the votes entitled to be cast on the matter. 

 

ARTICLE XI 

 

MERGER, CONSOLIDATION OR SALE OF TRUST PROPERTY 

 

Subject to the provisions of any class or series of Shares at the time outstanding, the Trust may (a) merge the Trust intoanother entity, (b) consolidate the Trust with one or more other entities into a new entity or (c) sell, lease, exchange or otherwise transfer all or substantially all of the Trust Property. Any such action must be approved by the Board of Trusteesand, after notice to all shareholders entitled to vote on the matter, by the affirmative vote of a majority of all the votes entitled to be cast on the matter. 

 

ARTICLE XII 

 

DURATION AND TERMINATION OF TRUST 

 

Section 1. Duration. The Trust shall continue perpetually unless terminated pursuant to Section 2 of this Article XII or pursuant to any applicable provision of Title 8. 

 

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Section 2. Termination. 

 

(a) Subject to the provision of any class or series of Shares at the time outstanding, the Trust may be terminated at anymeeting of shareholders, by the affirmative vote of two thirds of all the votes entitled to be cast on the matter. Upon the termination of the Trust: 

 

i) The Trust shall carry on no business except for the purpose of winding up its affairs. 

 

ii) The Trustees shall proceed to wind up the affairs of theTrust and all of the powers of the Trustees under the Declaration of Trust shall continue, including the powers to fulfill or discharge the Trust’s contracts, collect its assets, sell, convey, assign, exchange, transfer or otherwise dispose ofall or any part of the remaining property of the Trust to one or more persons at public or private sale for consideration which may consist in whole or in part of cash, securities or other property of any kind, discharge or pay its liabilities anddo all other acts appropriate to liquidate its business. 

 

iii) After paying or adequately providing for the payment of all liabilities, and upon receipt of such releases, indemnities and agreements as they deem necessary for their protection, the Trust may distribute theremaining property of the Trust among the shareholders so that after payment in full or the setting apart for payment of such preferential amounts, if any, to which the holders of any Shares at the time outstanding shall be entitled, the remainingproperty of the Trust shall, subject to any participating or similar rights of Shares at the time outstanding, be distributed ratably among the holders of Common Shares at the time outstanding. 

 

(b) After termination of the Trust, the liquidation of its business and thedistribution to the shareholders as herein provided, a majority of the Trustees shall execute and file with the Trust’s records a document certifying that the Trust has been duly terminated, and the Trustees shall be discharged from allliabilities and duties hereunder, and the rights and interests of all shareholders shall cease. 

 

ARTICLE XIII 

 

MISCELLANEOUS

 

Section 1. Governing Law. The Declaration of Trust isexecuted by the undersigned Trustee[s] and delivered in the State of Maryland with reference to the laws thereof, and the rights of all parties and the validity, construction and effect of every provision hereof shall be subject to and construedaccording to the laws of the State of Maryland without regard to conflicts of laws provisions thereof. 

 

Section 2. Reliance by Third Parties. Any certificate shall be final and conclusive as to any person dealing with the Trust if executed by theSecretary or an Assistant Secretary of the Trust or a Trustee, and if certifying to: (a) the number or identity of Trustees, officers of the Trust or shareholders; (b) the due authorization of the execution of any document; (c) the action or votetaken, and the existence of a quorum, at a meeting of the Board of Trustees or shareholders; (d) a copy of the Declaration of Trust or of the Bylaws as a true and complete copy as then in force; (e) an amendment to the Declaration of Trust; (f) thetermination of the Trust; or 

 

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(g) the existence of any fact relating to the affairs of the Trust. No purchaser, lender, transfer agent or other personshall be bound to make any inquiry concerning the validity of any transaction purporting to be made by the Trust on its behalf or by any officer, employee or agent of the Trust. 

 

Section 3. Severability. 

 

(A) The provisions of the Declaration of Trust are severable, and if the Board of Trustees shall determine, with the advice of counsel,that any one or more of such provisions (the “Conflicting Provisions”) are in conflict with the Code, Title 8 or other applicable federal or state laws, the Conflicting Provisions, to the extent of the conflict, shall be deemed never tohave constituted a part of the Declaration of Trust, even without any amendment of the Declaration of Trust pursuant to Article X and without affecting or impairing any of the remaining provisions of the Declaration of Trust or rendering invalid orimproper any action taken or omitted prior to such determination. No Trustee shall be liable for making or failing to make such a determination. In the event of any such determination by the Board of Trustees, the Board shall amend the Declarationof Trust in the manner provided in Article X, Section 2. 

 

(B) If any provision of the Declaration of Trust shall be held invalid or unenforceable in any jurisdiction, such holding shall apply only to the extent of any such invalidity or unenforceability and shall not in anymanner affect, impair or render invalid or unenforceable such provision in any other jurisdiction or any other provision of the Declaration of Trust in any jurisdiction. 

 

Section 4. Construction. In the Declaration of Trust, unless the context otherwise requires, words used in thesingular or in the plural include both the plural and singular and words denoting any gender include all genders. The title and headings of different parts are inserted for convenience and shall not affect the meaning, construction or effect of theDeclaration of Trust. In defining or interpreting the powers and duties of the Trust and its Trustees and officers, reference may be made by the Trustees or officers, to the extent appropriate and not inconsistent with the Code or Title 8, to Titles1 through 3 of the Corporations and Associations Article of the Annotated Code of Maryland. In furtherance and not in limitation of the foregoing, in accordance with the provisions of Title 3, Subtitles 6 and 7, of the Corporations and AssociationsArticle of the Annotated Code of Maryland, the Trust shall be included within the definition of “corporation” for purposes of such provisions. 

 

Section 5. Recordation. The Declaration of Trust and any amendment hereto shall be filed for record with the SDAT and may also be filed or recordedin such other places as the Trustees deem appropriate, but failure to file for record the Declaration of Trust or any amendment hereto in any office other than in the State of Maryland shall not affect or impair the validity or effectiveness of theDeclaration of Trust or any amendment hereto. A restated Declaration of Trust shall, upon filing, be conclusive evidence of all amendments contained therein and may thereafter be referred to in lieu of the original Declaration of Trust and thevarious amendments thereto. 

 

IN WITNESS WHEREOF, this Amendedand Restated Declaration of Trust has been signed on this    th day of October, 1996, by the undersigned President of the Trust and witnessed by the undersigned Secretary of the Trust, each of whom acknowledges that this documentis his free act and deed, and that to 

 

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the best of his knowledge, information, and belief, the matters and facts set forth herein are true in all materialrespects and that the statement is made under the penalties for perjury. 

 
PRENTISS PROPERTIES TRUST/s/    Michael V. Prentiss
Michael V. Prentiss, President

 

IN WITNESSWHEREOF, this Amended and Restated Declaration of Trust has been signed on this th day of October, 1996, by the sole Trustee of the Trust who acknowledges that this document is his free act and deed, and that to the best of his knowledge,information, and belief, the matters and facts set forth herein are true in all material respects and that the statement is made under the penalties for perjury. 

 
/s/    Michael V. Prentiss
Michael V. Prentiss, Trustee

 

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